372 
SEC. 852. USE OF RECENT PRICES PAID BY THE GOVERN-
MENT IN THE DETERMINATION OF PRICE 
REASONABLENESS. 
Section 2306a(b) of title 10, United States Code, as 
amended by section 804, is further amended by adding at 
the end the following new paragraph: 
‘‘(5) A contracting officer shall consider evidence 
provided by an offeror of recent purchase prices paid 
by the Government for the same or similar commer-
cial items in establishing price reasonableness on a 
subsequent purchase if the contracting officer is satis-
fied that the prices previously paid remain a valid 
reference for comparison after considering the totality 
of other relevant factors such as the time elapsed since 
the prior purchase and any differences in the quan-
tities purchased or applicable terms and conditions.’’. 
SEC. 853. CODIFICATION OF OTHER TRANSACTION AUTHOR-
ITY FOR CERTAIN PROTOTYPE PROJECTS. 
(a) IN GENERAL.—Section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103– 
160; 10 U.S.C. 2371 note) is transferred to chapter 139 of 
title 10, United States Code, inserted so as to appear after 
section 2371a, redesignated as section 2371b, and amend-
ed— 
(1) by amending the section heading to read as 
follows: 
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‘‘§ 2371b. Authority of the Advanced Research Projects 
Agency to carry out certain prototype 
projects’’; 
(2) by striking ‘‘of title 10, United States Code’’ 
each place it appears and inserting ‘‘of this title’’; 
(3) by striking ‘‘of title 41, United States Code’’ 
each place it appears and inserting ‘‘of title 41’’; 
(4) by amending subparagraph (B) of subsection 
(d)(1) to read as follows: 
‘‘(B) all parties to the transaction other than the 
Federal Government are innovative small business 
and nontraditional contractors with unique capabili-
ties relevant to the prototype project.’’; and 
(5) by striking subsection (i). 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 2371a the following new item: 
‘‘2371b. Authority of the Advanced Research Projects Agency to carry out certain 
prototype projects.’’. 
SEC. 
854. 
AMENDMENTS 
TO 
CERTAIN 
ACQUISITION 
THRESHOLDS. 
(a) SIMPLIFIED
ACQUISITION
THRESHOLD
GEN-
ERALLY.—Section 134 of title 41, United States Code, is 
amended by striking ‘‘$100,000’’ and inserting ‘‘$500,000’’. 
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(b) MICRO-PURCHASE THRESHOLD.—Section 1902(a) 
of title 41, United States Code, is amended by striking 
‘‘$3,000’’ and inserting ‘‘$5,000’’. 
(c) SPECIAL EMERGENCY PROCUREMENT AUTHOR-
ITY.—Section 1903(b)(2) of title 41, United States Code, is 
amended— 
(1) in subparagraph (A), by striking ‘‘$250,000’’ 
and inserting ‘‘$750,000’’; and 
(2) 
in 
subparagraph 
(B), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$1,500,000’’. 
(d) SMALL BUSINESS CONCERN RESERVATION.—Sec-
tion 15(j)(1) of the Small Business Act (15 U.S.C. 
644(j)(1)) is amended by striking ‘‘$100,000’’ and inserting 
‘‘$500,000’’. 
SEC. 855. REVISION OF METHOD OF ROUNDING WHEN MAK-
ING INFLATION ADJUSTMENT OF ACQUISI-
TION-RELATED DOLLAR THRESHOLDS. 
Section 1908(e)(2) of title 41, United States Code, is 
amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘on the day before the adjustment’’ and 
inserting ‘‘as calculated under paragraph (1)’’; 
(2) by striking ‘‘and’’ at the end of subpara-
graph (C); and 
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(3) by striking subparagraph (D) and inserting 
the following new subparagraphs: 
‘‘(D) not less than $1,000,000, but less than 
$10,000,000, to the nearest $500,000; 
‘‘(E) not less than $10,000,000, but less 
than $100,000,000, to the nearest $5,000,000; 
‘‘(F) not less than $100,000,000, but less 
than $1,000,000,000, to the nearest $50,000,000; 
and 
‘‘(G) $1,000,000,000 or more, to the nearest 
$500,000,000.’’. 
SEC. 856. REPEAL OF REQUIREMENT FOR STAND-ALONE 
MANPOWER ESTIMATES FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
(a) REPEAL OF REQUIREMENT.—Subsection (a)(1) of 
section 2434 of title 10, United States Code, is amended 
by striking ‘‘and a manpower estimate for the program 
have’’ and inserting ‘‘has’’. 
(b) CONFORMING AMENDMENTS RELATING TO REGU-
LATIONS.—Subsection (b) of such section is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘shall require—’’ and all that 
follows through ‘‘that the independent’’ and inserting 
‘‘shall require that the independent’’; 
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(3) by redesignating subparagraphs (A) and (B) 
as paragraphs (1) and (2), respectively, and realign-
ing those paragraphs so as to be two ems from the left 
margin; and 
(4) in paragraph (2), as so redesignated— 
(A) by striking ‘‘and operations and sup-
port,’’ and inserting ‘‘operations and support, 
and manpower to operate, maintain, and sup-
port the program upon full operational deploy-
ment,’’; and 
(B) by striking ‘‘; and’’ at the end and in-
serting a period. 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such sec-
tion is amended to read as follows: 
‘‘§ 2434. Independent cost estimates’’. 
(2) TABLE OF SECTIONS.—The item relating to 
such section in the table of sections at the beginning 
of chapter 144 of such title is amended to read as fol-
lows: 
‘‘2434. Independent cost estimates.’’. 
SEC. 857. EXAMINATION AND GUIDANCE RELATING TO 
OVERSIGHT AND APPROVAL OF SERVICES 
CONTRACTS. 
Not later than March 1, 2016, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall— 
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(1) complete an examination of the decision au-
thority related to acquisition of services; and 
(2) develop and issue guidance to improve capa-
bilities and processes related to requirements develop-
ment and source selection for, and oversight and man-
agement of, services contracts. 
SEC. 858. STREAMLINING OF REQUIREMENTS RELATING TO 
DEFENSE BUSINESS SYSTEMS. 
(a) IN GENERAL.— 
(1) REVISION.—Section 2222 of title 10, United 
States Code, is amended to read as follows: 
‘‘§ 2222. Defense business systems: business process re-
engineering; enterprise architecture; man-
agement 
‘‘(a) DEFENSE BUSINESS SYSTEMS GENERALLY.—The 
Secretary of Defense shall ensure that each covered defense 
business system developed, deployed, and operated by the 
Department of Defense— 
‘‘(1) supports efficient business processes that 
have been reviewed, and as appropriate revised, 
through business process reengineering; 
‘‘(2) is integrated into a comprehensive defense 
business enterprise architecture; and 
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‘‘(3) is managed in a manner that provides visi-
bility into, and traceability of, expenditures for the 
system. 
‘‘(b) ISSUANCE OF GUIDANCE.— 
‘‘(1) SECRETARY OF DEFENSE GUIDANCE.—The 
Secretary shall issue guidance to provide for the co-
ordination of, and decision making for, the planning, 
programming, and control of investments in covered 
defense business systems. 
‘‘(2) SUPPORTING
GUIDANCE.—The Secretary 
shall direct the Deputy Chief Management Officer of 
the Department of Defense, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, 
the Chief Information Officer, and the Chief Manage-
ment Officer of each of the military departments to 
issue and maintain supporting guidance, as appro-
priate, for the guidance of the Secretary issued under 
paragraph (1). 
‘‘(c) GUIDANCE ELEMENTS.—The guidance issued 
under subsection (b)(1) shall include the following elements: 
‘‘(1) Policy to ensure that the business processes 
of the Department of Defense are continuously re-
viewed and revised— 
‘‘(A) to implement the most streamlined 
and efficient business processes practicable; and 
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‘‘(B) to enable the use of commercial off-the- 
shelf business systems with the fewest changes 
necessary to accommodate requirements and 
interfaces that are unique to the Department of 
Defense. 
‘‘(2) A process to establish requirements for cov-
ered defense business systems. 
‘‘(3) Mechanisms for the planning and control of 
investments in covered defense business systems, in-
cluding a process for the collection and review of pro-
gramming and budgeting information for covered de-
fense business systems. 
‘‘(4) Policy requiring the periodic review of cov-
ered defense business systems that have been fully de-
ployed, by portfolio, to ensure that investments in 
such portfolios are appropriate. 
‘‘(d) DEFENSE BUSINESS ENTERPRISE ARCHITEC-
TURE.— 
‘‘(1) 
BLUEPRINT.—The 
Secretary, 
working 
through the Deputy Chief Management Officer of the 
Department of Defense, shall develop and maintain a 
blueprint to guide the development of integrated busi-
ness processes within the Department of Defense. Such 
blueprint shall be known as the ‘defense business en-
terprise architecture’. 
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‘‘(2) PURPOSE.—The defense business enterprise 
architecture shall be sufficiently defined to effectively 
guide implementation of interoperable defense busi-
ness system solutions and shall be consistent with the 
policies and procedures established by the Director of 
the Office of Management and Budget. 
‘‘(3) ELEMENTS.—The defense business enter-
prise architecture shall— 
‘‘(A) include policies, procedures, business 
data standards, business performance measures, 
and business information requirements that 
apply uniformly throughout the Department of 
Defense; and 
‘‘(B) enable the Department of Defense to— 
‘‘(i) comply with all applicable law, 
including Federal accounting, financial 
management, and reporting requirements; 
‘‘(ii) routinely produce verifiable, time-
ly, accurate, and reliable business and fi-
nancial information for management pur-
poses; and 
‘‘(iii) integrate budget, accounting, and 
program information and systems. 
‘‘(4) INTEGRATION
INTO
INFORMATION
TECH-
NOLOGY
ARCHITECTURE.—(A) The defense business 
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enterprise architecture shall be integrated into the in-
formation technology enterprise architecture required 
under subparagraph (B). 
‘‘(B) The Chief Information Officer of the De-
partment of Defense shall develop an information 
technology enterprise architecture. The architecture 
shall describe a plan for improving the information 
technology and computing infrastructure of the De-
partment of Defense, including for each of the major 
business processes conducted by the Department of De-
fense. 
‘‘(e) DEFENSE BUSINESS COUNCIL.— 
‘‘(1) REQUIREMENT
FOR
COUNCIL.—The Sec-
retary shall establish a Defense Business Council to 
provide advice to the Secretary on developing the de-
fense business enterprise architecture, reengineering 
the Department’s business processes, and requirements 
for defense business systems. The Council shall be 
chaired by the Deputy Chief Management Officer and 
the Chief Information Officer of the Department of 
Defense. 
‘‘(2) MEMBERSHIP.—The membership of the 
Council shall include the following: 
‘‘(A) The Chief Management Officers of the 
military departments, or their designees. 
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‘‘(B) The following officials of the Depart-
ment of Defense, or their designees: 
‘‘(i) The Under Secretary of Defense 
for Acquisition, Technology, and Logistics 
with respect to acquisition, logistics, and 
installations management processes. 
‘‘(ii) The Under Secretary of Defense 
(Comptroller) with respect to financial 
management and planning and budgeting 
processes. 
‘‘(iii) The Under Secretary of Defense 
for Personnel and Readiness with respect to 
human resources management processes. 
‘‘(f) APPROVALS REQUIRED FOR DEVELOPMENT.— 
‘‘(1) INITIAL
APPROVAL
REQUIRED.—The Sec-
retary shall ensure that a covered defense business 
system program cannot proceed into development (or, 
if no development is required, into production or 
fielding) unless the appropriate approval official (as 
specified in paragraph (2)) approves the program by 
determining that the covered defense business system 
concerned— 
‘‘(A) supports a business process that has 
been, or is being as a result of the acquisition 
program, reengineered to be as streamlined and 
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efficient as practicable consistent with the guid-
ance issued pursuant to subsection (b), including 
business process mapping; 
‘‘(B) is in compliance with the defense busi-
ness enterprise architecture developed pursuant 
to subsection (d) or will be in compliance as a 
result of modifications planned; 
‘‘(C) has valid, achievable requirements; 
and 
‘‘(D) is in compliance with the Depart-
ment’s auditability requirements. 
‘‘(2) APPROPRIATE OFFICIAL.—For purposes of 
paragraph (1), the appropriate approval official with 
respect to a covered defense business system is the fol-
lowing: 
‘‘(A) In the case of a system of a military 
department, the Chief Management Officer of 
that military department. 
‘‘(B) In the case of a system of a Defense 
Agency or Defense Field Activity or a system 
that will support the business process of more 
than one military department or Defense Agency 
or Defense Field Activity, the Deputy Chief Man-
agement Officer of the Department of Defense. 
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‘‘(C) In the case of any system, such official 
other than the applicable official under subpara-
graph (A) or (B) as the Secretary designates for 
such purpose. 
‘‘(3) ANNUAL
CERTIFICATION.—For any fiscal 
year in which funds are expended for development 
pursuant to a covered defense business system pro-
gram, the Defense Business Council shall review the 
system and certify (or decline to certify as the case 
may be) that it continues to satisfy the requirements 
of paragraph (1). If the Council determines that cer-
tification cannot be granted, the chairman of the 
Council shall notify the appropriate approval official 
and the acquisition Milestone Decision Authority for 
the program and provide a recommendation for cor-
rective action. 
‘‘(4) OBLIGATION OF FUNDS IN VIOLATION OF 
REQUIREMENTS.—The obligation of Department of 
Defense funds for a covered defense business system 
program that has not been certified in accordance 
with paragraph (3) is a violation of section 
1341(a)(1)(A) of title 31. 
‘‘(g) RESPONSIBILITY OF MILESTONE DECISION AU-
THORITY.—The Secretary shall ensure that, as part of the 
defense acquisition system, the requirements of this section 
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are fully addressed by the Milestone Decision Authority for 
a covered defense business system program as acquisition 
process approvals are considered for such system. 
‘‘(h) ANNUAL REPORT.—Not later than March 15 of 
each year from 2016 through 2020, the Secretary shall sub-
mit to the congressional defense committees a report on ac-
tivities of the Department of Defense pursuant to this sec-
tion. Each report shall include the following: 
‘‘(1) A description of actions taken and planned 
with respect to the guidance required by subsection 
(b) and the defense business enterprise architecture 
developed pursuant to subsection (d). 
‘‘(2) A description of actions taken and planned 
for the reengineering of business processes by the De-
fense Business Council established pursuant to sub-
section (e). 
‘‘(3) A summary of covered defense business sys-
tem funding and covered defense business systems ap-
proved pursuant to subsection (f). 
‘‘(4) Identification of any covered defense busi-
ness system program that during the preceding fiscal 
year was reviewed and not approved pursuant to sub-
section (f) and the reasons for the lack of approval. 
‘‘(5) Identification of any covered defense busi-
ness system program that during the preceding fiscal 
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year failed to achieve initial operational capability 
within five years after the date the program received 
Milestone B approval. 
‘‘(6) For any program identified under para-
graph (5), a description of the plan to address the 
issues that caused the failure. 
‘‘(7) A discussion of specific improvements in 
business operations and cost savings resulting from 
successful covered defense business systems programs. 
‘‘(8) A copy of the most recent report of the Chief 
Management Officer of each military department on 
implementation of business transformation initiatives 
by such military department in accordance with sec-
tion 908 of the Duncan Hunter National Defense Au-
thorization Act for Fiscal Year 2009 (Public Law 
110–417; 122 Stat. 4569; 10 U.S.C. 2222 note). 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1)(A) DEFENSE BUSINESS SYSTEM.—The term 
‘defense business system’ means an information sys-
tem that is operated by, for, or on behalf of the De-
partment of Defense, including any of the following: 
‘‘(i) A financial system. 
‘‘(ii) A financial data feeder system. 
‘‘(iii) A contracting system. 
‘‘(iv) A logistics system. 
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‘‘(v) A planning and budgeting system. 
‘‘(vi) An installations management 
system. 
‘‘(vii) A human resources management 
system. 
‘‘(viii) A training and readiness sys-
tem. 
‘‘(B) The term does not include— 
‘‘(i) a national security system; or 
‘‘(ii) an information system used ex-
clusively by and within the defense com-
missary system or the exchange system or 
other instrumentality of the Department of 
Defense conducted for the morale, welfare, 
and recreation of members of the armed 
forces using nonappropriated funds. 
‘‘(2) COVERED
DEFENSE
BUSINESS
SYSTEM.— 
The term ‘covered defense business system’ means a 
defense business system that is expected to have a 
total amount of budget authority, over the period of 
the current future-years defense program submitted to 
Congress under section 221 of this title, in excess of 
the threshold established for the use of special sim-
plified acquisition procedures pursuant to section 
2304(g)(1)(B) of this title. 
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‘‘(3) COVERED DEFENSE BUSINESS SYSTEM PRO-
GRAM.—The term ‘covered defense business system 
program’ means a defense acquisition program to de-
velop and field a covered defense business system or 
an increment of a covered defense business system. 
‘‘(4) ENTERPRISE
ARCHITECTURE.—The term 
‘enterprise architecture’ has the meaning given that 
term in section 3601(4) of title 44. 
‘‘(5) INFORMATION SYSTEM.—The term ‘informa-
tion system’ has the meaning given that term in sec-
tion 11101 of title 40. 
‘‘(6) NATIONAL
SECURITY
SYSTEM.—The term 
‘national security system’ has the meaning given that 
term in section 3542(b)(2) of title 44. 
‘‘(7) MILESTONE
DECISION
AUTHORITY.—The 
term ‘Milestone Decision Authority’, with respect to a 
defense acquisition program, means the individual 
within the Department of Defense designated with the 
responsibility to grant milestone approvals for that 
program. 
‘‘(8) BUSINESS
PROCESS
MAPPING.—The term 
‘business process mapping’ means a procedure in 
which the steps in a business process are clarified and 
documented in both written form and in a flow 
chart.’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
adding at the end the following new item: 
‘‘2222. Defense business systems: business process reengineering; enterprise archi-
tecture; management.’’. 
(b) DEADLINE
FOR GUIDANCE.—The guidance re-
quired by subsection (b)(1) of section 2222 of title 10, 
United States Code, as amended by subsection (a)(1), shall 
be issued not later than December 31, 2016. 
(c) REPEAL.—Section 811 of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 2007 (Pub-
lic Law 109–364; 10 U.S.C. 2222 note) is repealed. 
SEC. 859. CONSIDERATION OF STRATEGIC MATERIALS IN 
PRELIMINARY DESIGN REVIEW. 
(a) CONSIDERATION.—The Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall ensure that 
Department of Defense Instruction 5000.02 and other appli-
cable guidance receive full consideration, during prelimi-
nary design review for a product, with respect to any stra-
tegic materials required for sustainment of the product over 
the life cycle of the product. 
(b) STRATEGIC MATERIALS.—In this section, the term 
‘‘strategic materials’’ means— 
(1) materials critical to national security, as de-
fined in section 187(e)(1) of title 10, United States 
Code; and 
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(2) any specialty metal, as defined in section 
2533b(l) of such title. 
SEC. 
860. 
PROCUREMENT 
OF 
PERSONAL 
PROTECTIVE 
EQUIPMENT. 
(a) REQUIREMENT.—The Secretary of Defense shall 
use best value tradeoff source selection methods to the max-
imum extent practicable when procuring an item of per-
sonal protective equipment or critical safety items. 
(b) PERSONAL PROTECTIVE EQUIPMENT DEFINED.— 
In this section, the term ‘‘personal protective equipment’’ 
includes the following: 
(1) Body armor components. 
(2) Combat helmets. 
(3) Combat protective eyewear. 
(4) Environmental and fire resistant clothing. 
(5) Footwear. 
(6) Organizational clothing and individual 
equipment. 
(7) Other critical safety items as determined ap-
propriate by the Secretary. 
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SEC. 861. AMENDMENTS CONCERNING DETECTION AND 
AVOIDANCE OF COUNTERFEIT ELECTRONIC 
PARTS. 
Section 818(c)(2)(B) of the National Defense Author-
ization Act for Fiscal Year 2012 (Public Law 112–81; 10 
U.S.C. 2302 note) is amended— 
(1) in clause (i), by inserting ‘‘electronic’’ after 
‘‘avoid counterfeit’’; 
(2) in clause (ii)— 
(A) by inserting ‘‘covered’’ after ‘‘provided 
to the’’; and 
(B) by inserting ‘‘or were obtained by the 
covered contractor in accordance with regula-
tions described in paragraph (3)’’ after ‘‘Regula-
tion’’; and 
(3) in clause (iii), by inserting ‘‘discovers the 
counterfeit electronic parts or suspect counterfeit elec-
tronic parts and’’ after ‘‘contractor’’. 
SEC. 862. REVISION TO DUTIES OF THE DEPUTY ASSISTANT 
SECRETARY 
OF 
DEFENSE 
FOR 
DEVELOP-
MENTAL TEST AND EVALUATION AND THE 
DEPUTY ASSISTANT SECRETARY OF DEFENSE 
FOR SYSTEMS ENGINEERING. 
Section 139b of title 10, United States Code, is amend-
ed— 
(1) in subsection (a)(5)— 
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(A) in subparagraph (B), by striking ‘‘re-
view and approve or disapprove’’ and inserting 
‘‘advise in writing the milestone decision author-
ity regarding review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best prac-
tices for developmental test from across the De-
partment’’ after ‘‘programs’’; and 
(2) in subsection (b)(5)— 
(A) in subparagraph (B), by striking ‘‘re-
view and approve’’ and inserting ‘‘advise in 
writing the milestone decision authority regard-
ing review and approval of’’; and 
(B) in subparagraph (C), by inserting ‘‘in 
order to advise relevant technical authorities for 
such programs on the incorporation of best prac-
tices for systems engineering from across the De-
partment’’ after ‘‘programs’’. 
SEC. 863. EXTENSION OF LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
Section 808 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1489), 
as most recently amended by section 813 of the National 
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Defense Authorization Act for Fiscal Year 2015 (Public 
Law 113–291; 128 Stat. 3429) is further amended— 
(1) in subsections (a) and (b), by striking ‘‘or 
2015’’ and inserting ‘‘2015, or 2016’’; 
(2) in subsection (c)(3), by striking ‘‘and 2015’’ 
and inserting ‘‘2015, and 2016’’; 
(3) in subsection (d)(4), by striking ‘‘or 2015’’ 
and inserting ‘‘2015, or 2016’’; and 
(4) in subsection (e), by striking ‘‘2015’’ and in-
serting ‘‘2016’’. 
SEC. 864. USE OF LOWEST PRICE, TECHNICALLY ACCEPT-
ABLE EVALUATION METHOD FOR PROCURE-
MENT OF AUDIT OR AUDIT READINESS SERV-
ICES. 
(a) FINDINGS.—Congress finds the following: 
(1) Given the size and scope of the Department 
of Defense, the effort to finish and institutionalize 
auditability is one of the more challenging manage-
ment tasks that has ever faced the Department. 
(2) The acquisition of services by the Department 
abides by many rules and parameters, one of which 
is the lowest price, technically acceptable (LPTA) 
evaluation method. 
(3) The Department’s audit effort is extremely 
complicated, requiring personnel and assistance who 
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have the financial management and auditor skills 
that a non-independent public accounting firm or a 
non-credentialed firm offering the lowest price may 
not have. 
(4) In order for the Department to meet the Sep-
tember 30, 2017, audit readiness statutory deadline 
and the March 31, 2019, audit of fiscal year 2018 
statutory deadline, it is imperative that the Depart-
ment not sacrifice contracts with firms who have the 
proper credentials and expertise to meet these dead-
lines. 
(5) The LPTA evaluation method is appropriate 
for commercial or non-complex services or supplies 
where the requirement is clearly definable and the 
risk of unsuccessful contract performance is minimal. 
However, audit and audit readiness services are com-
plex and evolving. 
(b) REQUIREMENTS BEFORE USING LPTA EVALUA-
TION METHOD.—Before using the lowest price, technically 
acceptable evaluation method for the procurement of audit 
or audit readiness services, the Secretary of Defense shall— 
(1) establish the values and metrics for the serv-
ices being procured, including domain expertise and 
experience, size and scope of offeror’s team, personnel 
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shall be considered to be a reference to that office as 
redesignated by that section. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first day 
of the first month beginning more than 60 days after the 
date of the enactment of this Act. 
SEC. 902. CHANGE OF PERIOD FOR CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF REVIEW OF THE UNI-
FIED COMMAND PLAN. 
Section 161(b)(1) of title 10, United States Code, is 
amended by striking ‘‘two years’’ and inserting ‘‘four 
years’’. 
SEC. 903. UPDATE OF STATUTORY SPECIFICATION OF FUNC-
TIONS OF THE CHAIRMAN OF THE JOINT 
CHIEFS OF STAFF RELATING TO JOINT FORCE 
DEVELOPMENT ACTIVITIES. 
Section 153(a)(5) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) Advising the Secretary on development of 
joint command, control, communications, and cyber 
capability, including integration and interoperability 
of such capability, through requirements, integrated 
architectures, data standards, and assessments.’’. 
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SEC. 904. SENSE OF CONGRESS ON THE UNITED STATES 
MARINE CORPS. 
(a) FINDINGS.—Congress finds the following: 
(1) As senior United States statesman Dr. 
Henry Kissinger wrote in testimony submitted to the 
Senate Armed Services Committee on January 29, 
2015, ‘‘The United States has not faced a more di-
verse and complex array of crises since the end of the 
Second World War.’’. 
(2) The rise of non-state forces and near peer 
competitors has introduced destabilizing pressures 
around the globe. 
(3) Advances in information and weapons tech-
nology have reduced the time available for the United 
States to prepare for and respond to crises against 
both known and unknown threats. 
(4) The importance of the maritime domain can-
not be overstated. As acknowledged in the March 2015 
Navy, Marine Corps, and Coast Guard maritime 
strategy, ‘‘A Cooperative Strategy for 21st Century 
Seapower’’: ‘‘Oceans are the lifeblood of the inter-
connected global community. . . 90 percent of trade 
by volume travels across the oceans. Approximately 
70 percent of the world’s population lives within 100 
miles of the coastline.’’. 
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(5) The United States must be prepared to rap-
idly respond to crises around the world regardless of 
the nation’s fiscal health. 
(6) In this global security environment, it is 
critical that the nation possess a maritime force 
whose mission and ethos is readiness—a fight tonight 
force, forward deployed, that can respond imme-
diately to emergent crises across the full range of 
military operations around the globe either from the 
sea or home station. 
(7) The need for such a force was recognized by 
the 82nd Congress after the major wars of the twen-
tieth century, when it mandated a core mission for 
the nation’s leanest force—the Marine Corps—to be 
most ready when the nation is least ready. 
(b) SENSE OF CONGRESS.— 
(1) It is the sense of Congress that— 
(A) the Marine Corps, within the Depart-
ment of the Navy, remain the Nation’s expedi-
tionary, crisis response force; 
(B) the need for such a force with such a ca-
pability has never been greater; and 
(C) accordingly, in recognition of this need 
and the wisdom of the 82nd Congress, the 114th 
Congress reaffirms section 5063 of title 10, 
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United States Code, uniquely charging the 
United States Marine Corps with this responsi-
bility. 
(2) It is further the sense of Congress that the 
Marine Corps— 
(A) shall— 
(i) be organized to include not less 
than three combat divisions and three air 
wings, and such other land combat, avia-
tion, and other services as may be organic 
therein; 
(ii) 
be 
organized, 
trained, 
and 
equipped to provide fleet marine forces of 
combined arms, together with supporting 
air components, for service with the fleet in 
the seizure or defense of advanced naval 
bases and for the conduct of such land oper-
ations as may be essential to the prosecu-
tion of a naval campaign; and 
(iii) provide detachments and organi-
zations for service on armed vessels of the 
Navy, shall provide security detachments for 
the protection of naval property at naval 
stations and bases, and shall perform such 
other duties as the President may direct; 
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but these additional duties may not detract from 
nor interfere with the operations for which the 
Marine Corps is primarily organized; 
(B) shall develop, in coordination with the 
Army and the Air Force, those phases of amphib-
ious operations that pertain to the tactics, tech-
niques, and equipment used by landing forces; 
and 
(C) is responsible, in accordance with the 
integrated joint mobilization plans, for the ex-
pansion of peacetime components of the Marine 
Corps to meet the needs of war. 
SEC. 905. ADDITIONAL REQUIREMENTS FOR STREAMLINING 
OF DEPARTMENT OF DEFENSE MANAGEMENT 
HEADQUARTERS. 
(a) FINDINGS.— 
(1) On July 31, 2013, the then Secretary of De-
fense stated that the Department would ‘‘reduc[e] the 
Department’s major headquarters budgets by 20 per-
cent. . .Although the 20 percent cut applies to budget 
dollars, organizations will strive for a goal of 20 per-
cent reductions in government civilians and military 
personnel.’’ The then Secretary further stated that 
‘‘these management reforms. . .will reduce the De-
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partment’s overhead and operating costs by...$10 bil-
lion over the next five years.’’. 
(2) Furthermore, the President’s budget request 
for the Department of Defense for fiscal year 2015 
stated that reductions to management headquarters 
staff and consolidation of duplicative efforts across the 
Department would result in a savings of $5.3 billion 
over 5 years—through fiscal year 2019. However, as 
noted by the Government Accountability Office in a 
January 2015 report (GAO-15-10), the Department 
accounted for $5.3 billion as efficiency savings in its 
budget request, but has not provided specific details 
on the reductions to management headquarters’ staff 
it plans to make. 
(3) In June 2014, the Government Account-
ability Office found (in GAO-14-439) that the Depart-
ment did not have an accurate accounting of the re-
sources being devoted to management headquarters to 
use as a starting point for tracking reductions to such 
headquarters. In April 2015, the Government Ac-
countability Office reported (in GAO-15-404SP) that 
focusing reductions on management headquarters 
budgets and personnel, which tend to be inconsistently 
defined and often represent a small portion of the 
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overall headquarters, shields much of the resources 
identified for potential reduction. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) the Secretary of Defense’s commitment in 
July 2013 to a goal of a 20 percent reduction in 
headquarters budgets and personnel and a goal of $10 
billion in cost savings over five years is worthwhile 
and should be fully implemented; 
(2) without a clear baseline for management 
headquarters, it is difficult to demonstrate and track 
progress achieving actual savings; 
(3) any reduction in personnel should not be im-
plemented as an across-the-board cut, but rather 
should be strategically designed to retain critical 
functions, capabilities, and skill sets—including but 
not limited to depots and the acquisition workforce— 
and eliminate unnecessary or redundant functions or 
skill sets that do not benefit or support mission re-
quirements; 
(4) functions should be performed at the lowest 
appropriate organizational level and those organiza-
tions should be empowered and held accountable; 
(5) duplicative functions at higher level organi-
zations should be eliminated; and 
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(6) the movement of a function from a manage-
ment headquarters to a different Department of De-
fense organization or a lower level organization does 
not result in an efficiency, since the same budget is 
still required to perform that function. 
(c) REQUIREMENT TO IMPLEMENT 20 PERCENT RE-
DUCTION IN MANAGEMENT HEADQUARTERS FUNCTIONS.— 
Section 904 of the National Defense Authorization Act for 
Fiscal Year 2014 (Public Law 113–66; 10 U.S.C. 111 note) 
is amended by adding at the end the following new sub-
section: 
‘‘(e) IMPLEMENTATION
OF
MANAGEMENT
HEAD-
QUARTERS REDUCTION.—The Secretary of Defense shall 
implement the 20 percent reduction directed by the Sec-
retary in July 2013 in management headquarters budget 
and personnel by September 30, 2019, for the covered orga-
nizations in the National Capital Region (as defined in sec-
tion 2674(f) of title 10, United States Code). Such reduc-
tions shall be strategically designed to retain critical func-
tions, capabilities, and skill sets. Management, functions, 
programs, or offices shall be moved to the lowest appropriate 
organizational level. In any report issued pursuant to sub-
section (d), the Secretary may not claim a cost savings sole-
ly based on moving management, functions, programs, or 
offices from one organization to another.’’. 
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(d) LIMITATION ON WORKING-CAPITAL FUND POSI-
TIONS.—Section 904 of the National Defense Authorization 
Act for Fiscal Year 2014 (Public Law 113–66; 10 U.S.C. 
111 note) is further amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) LIMITATION ON WORKING-CAPITAL FUND POSI-
TIONS.—In implementing the 20 percent reduction referred 
to in subsection (e), the Secretary of Defense may not reduce 
the number of Department of Defense civilian employees 
whose salaries are funded from working-capital funds ex-
cept in accordance with section 2472 of title 10, United 
States Code.’’. 
(e) CHANGE IN DEADLINE FOR REQUIRED PLAN.— 
Section 904(a) of the such Act is amended by striking ‘‘180 
days after the date of the enactment of this Act’’ and insert-
ing ‘‘March 31, 2016’’. 
(f) ADDITIONAL ELEMENTS OF PLAN.—Section 904(b) 
of such Act is amended— 
(1) by redesignating paragraphs (1), (2), and (3) 
as paragraphs (2), (3), and (4), respectively; 
(2) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) An accurate baseline accounting of defense 
headquarters budgets and personnel as of fiscal year 
2014, including what is and is not included as part 
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of management headquarters accounting, and a de-
tailed description of the number of personnel, budgets, 
functions, capabilities, and skill sets.’’; 
(3) in paragraph (2), as so redesignated— 
(A) by inserting ‘‘actual and’’ before 
‘‘planned changes’’; 
(B) by striking ‘‘staffing’’ and inserting 
‘‘personnel’’; and 
(C) by inserting before the period at the end 
the following: ‘‘, set forth separately by fiscal 
year, from fiscal year 2014 through fiscal year 
2019’’; 
(4) in paragraph (3), as so redesignated— 
(A) by striking ‘‘description of the planned 
changes’’ and inserting ‘‘detailed description of 
the actual and planned changes’’; and 
(B) by inserting before the period at the end 
the following: ‘‘, set forth separately by fiscal 
year, from fiscal year 2014 through fiscal year 
2019’’; and 
(5) in paragraph (4), as so redesignated, by 
striking ‘‘fiscal year 2015, and estimated savings to 
be achieved for each of fiscal years 2015 through 
2024’’ and inserting ‘‘fiscal year 2014, and estimated 
savings to be achieved, along with associated changes 
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or reductions in budget, for each of fiscal years 2014 
through 2024’’. 
(g) ADDITIONAL REPORT REQUIREMENTS.—Section 
904(d) of such Act is amended— 
(1) in paragraph (1), by striking ‘‘180 days 
after the date of the enactment of this Act’’ and in-
serting ‘‘March 31, 2016’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (C), by striking ‘‘in-
cluding’’ and all that follows through the end of 
the subparagraph and inserting the following: 
‘‘and specific detailed information on how the 
changes, consolidations, or reductions were 
prioritized and resulted in functions no longer 
being performed, in the fiscal year covered by 
such report.’’; 
(B) in subparagraph (F), by striking ‘‘, in-
cluding’’ and all that follows through ‘‘manage-
ment review’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(H) A separate description of— 
‘‘(i) the management functions, pro-
grams, or offices that were eliminated and 
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how each represents a redundant manage-
ment or oversight function; and 
‘‘(ii) the management, functions, pro-
grams, or offices that were moved, and how 
moving each will result in efficiency.’’. 
SEC. 906. SENSE OF CONGRESS ON PERFORMANCE MAN-
AGEMENT AND WORKFORCE INCENTIVE SYS-
TEM. 
(a) FINDINGS.—Congress finds the following: 
(1) Section 1113 of the National Defense Author-
ization Act for Fiscal Year 2010 (Public Law 111– 
84) required the Department of Defense to institute a 
fair, credible, and transparent performance appraisal 
system, given the name ‘‘New Beginnings,’’ for em-
ployees, which— 
(A) links employee bonuses and other per-
formance-based action to employee performance 
appraisals; 
(B) ensures ongoing performance feedback 
and dialogue among supervisors, managers, and 
employees throughout the appraisal period, with 
timetables for review; and 
(C) develops performance assistance plans 
to give employees formal training, on-the-job 
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training, counseling, mentoring, and other as-
sistance. 
(2) The military components and defense agen-
cies of the Department of Defense are currently re-
viewing the proposed ‘‘New Beginnings’’ performance 
management and workforce incentive system devel-
oped in response to section 1113 of Public Law 111– 
84. 
(3) The Department of Defense anticipates it 
will begin implementation of the ‘‘New Beginnings’’ 
performance management and workforce incentive 
system in April 2016. 
(4) The authority provided in section 1113 of 
Public Law 111–84 provided the Secretary of Defense, 
in coordination with the Director of the Office of Per-
sonnel Management, flexibilities in promulgating reg-
ulations to redesign the procedures which are applied 
by the Department of Defense in making appoint-
ments to positions within the competitive service in 
order to— 
(A) better meet mission needs; 
(B) respond to managers’ needs and the 
needs of applicants; 
(C) produce high-quality applicants; 
(D) support timely decisions; 
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(E) uphold appointments based on merit 
system principles; and 
(F) promote competitive job offers. 
(5) In implementing the ‘‘New Beginnings’’ per-
formance management and workforce incentive sys-
tem, section 113 of Public Law 111–84 requires the 
Secretary of Defense to comply with veterans’ pref-
erence requirements. 
(6) Among the criteria for the new performance 
management and workforce incentive system author-
ized under section 1113 of Public Law 111–84, the 
Secretary of Defense is required to— 
(A) adhere to merit principles; 
(B) include a means for ensuring employee 
involvement (for bargaining unit employees, 
through their exclusive representatives) in the de-
sign and implementation of the performance 
management and workforce incentive system; 
(C) provide for adequate training and re-
training for supervisors, managers, and employ-
ees in the implementation and operation of the 
performance management and workforce incen-
tive system; 
(D) develop a comprehensive management 
succession program to provide training to em-
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ployees to develop managers for the agency and 
a program to provide training to supervisors on 
actions, options, and strategies a supervisor may 
use in administering the performance manage-
ment and workforce incentive system; 
(E) include effective transparency and ac-
countability measures and safeguards to ensure 
that the management of the performance man-
agement and workforce incentive system is fair, 
credible, and equitable, including appropriate 
independent reasonableness reviews, internal as-
sessments, and employee surveys; 
(F) use the annual strategic workforce plan 
required by section 115b of title 10; and 
(G) ensure that adequate agency resources 
are allocated for the design, implementation, and 
administration of the performance management 
and workforce incentive system. 
(7) Section 1113 of Public Law 111–84 also re-
quires the Secretary of Defense to develop a program 
of training—to be completed by a supervisor every 
three years—on the actions, options, and strategies a 
supervisor may use in— 
(A) developing and discussing relevant goals 
and objectives with the employee, communicating 
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and discussing progress relative to performance 
goals and objectives, and conducting performance 
appraisals; 
(B) mentoring and motivating employees, 
and improving employee performance and pro-
ductivity; 
(C) fostering a work environment character-
ized by fairness, respect, equal opportunity, and 
attention to the quality of the work of employees; 
(D) effectively managing employees with 
unacceptable performance; 
(E) addressing reports of a hostile work en-
vironment, reprisal, or harassment of or by an-
other supervisor or employee; and 
(F) allowing experienced supervisors to 
mentor new supervisors by sharing knowledge 
and advice in areas such as communication, 
critical thinking, responsibility, flexibility, moti-
vating employees, teamwork, leadership, and 
professional development, and pointing out 
strengths and areas of development. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the Secretary of Defense should proceed with the col-
laborative work with employee representatives on the ‘‘New 
Beginnings’’ performance management and workforce in-
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centive system and begin implementation of the new system 
at the earliest possible date. 
SEC. 907. GUIDELINES FOR CONVERSION OF FUNCTIONS 
PERFORMED BY CIVILIAN OR CONTRACTOR 
PERSONNEL TO PERFORMANCE BY MILITARY 
PERSONNEL. 
Section 129a of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(g) GUIDELINES
FOR PERFORMANCE
OF CERTAIN 
FUNCTIONS BY MILITARY PERSONNEL.—(1) Except as pro-
vided in paragraph (2), no functions performed by civilian 
personnel or contractors may be converted to performance 
by military personnel unless— 
‘‘(A) there is a direct link between the functions 
to be performed and a military occupational spe-
cialty; and 
‘‘(B) the conversion to performance by military 
personnel is cost effective, based on Department of De-
fense instruction 7041.04 (or any successor adminis-
trative regulation, directive, or policy). 
‘‘(2) Paragraph (1) shall not apply to the following 
functions: 
‘‘(A) Functions required by law or regulation to 
be performed by military personnel. 
‘‘(B) Functions related to— 
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‘‘(i) missions involving operation risks and 
combatant status under the Law of War; 
‘‘(ii) specialized collective and individual 
training requiring military-unique knowledge 
and skills based on recent operational experience; 
‘‘(iii) independent advice to senior civilian 
leadership in the Department of Defense requir-
ing military-unique knowledge and skills based 
on recent operational experience; and 
‘‘(iv) command and control arrangements 
under chapter 47 of this title (the Uniform Code 
of Military Justice).’’. 
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 
2016 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
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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 $5,000,000,000. 
(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). 
SEC. 1002. AUTHORITY TO TRANSFER FUNDS TO THE NA-
TIONAL NUCLEAR SECURITY ADMINISTRA-
TION TO SUSTAIN NUCLEAR WEAPONS MOD-
ERNIZATION AND NAVAL REACTORS. 
(a) TRANSFER AUTHORIZED.—If the amount author-
ized to be appropriated for the weapons activities of the Na-
tional Nuclear Security Administration under section 3101 
or otherwise made available for fiscal year 2016 is less than 
$8,900,000,000 (the amount projected to be required for 
such activities in fiscal year 2016 as specified in the report 
under section 1251 of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2549)), the Secretary of Defense may transfer, from 
amounts authorized to be appropriated for the Department 
of Defense for fiscal year 2016 pursuant to this Act, to the 
Secretary of Energy an amount, not to exceed $150,000,000, 
to be available only for naval reactors or weapons activities 
of the National Nuclear Security Administration. 
(b) NOTICE TO CONGRESS.—In the event of a transfer 
under subsection (a), the Secretary of Defense shall prompt-
ly notify Congress of the transfer, and shall include in such 
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notice the Department of Defense account or accounts from 
which funds are transferred. 
(c) TRANSFER MECHANISM.—Any funds transferred 
under this section shall be transferred in accordance with 
established procedures for reprogramming under section 
1001 or successor provisions of law. 
(d) CONSTRUCTION OF AUTHORITY.—The transfer au-
thority provided under subsection (a) is in addition to any 
other transfer authority provided under this Act. 
SEC. 1003. ACCOUNTING STANDARDS TO VALUE CERTAIN 
PROPERTY, PLANT, AND EQUIPMENT ITEMS. 
(a) REQUIREMENT FOR CERTAIN ACCOUNTING STAND-
ARDS.—The Secretary of Defense shall work in coordination 
with the Federal Accounting Standards Advisory Board to 
establish accounting standards to value large and 
unordinary general property, plant, and equipment items. 
(b) DEADLINE.—The accounting standards required by 
subsection (a) shall be established by not later than Sep-
tember 30, 2017, and be available for use for the full audit 
on the financial statements of the Department of Defense 
for fiscal year 2018, as required by section 1003(a) of the 
National Defense Authorization Act for Fiscal Year 2014 
(Public Law 113–66; 127 Stat. 842; 10 U.S.C. 2222 note). 
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Subtitle B—Counter-Drug Activities 
SEC. 1011. EXTENSION OF AUTHORITY TO PROVIDE ADDI-
TIONAL SUPPORT FOR COUNTER-DRUG AC-
TIVITIES OF CERTAIN FOREIGN GOVERN-
MENTS. 
(a) EXTENSION.—Subsection (a)(2) of section 1033 of 
the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105–85; 111 Stat. 1881), as most recently 
amended by section 1013 of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 127 
Stat. 844), is further amended by striking ‘‘2016’’ and in-
serting ‘‘2017’’. 
(b) MAXIMUM
AMOUNT
OF
SUPPORT.—Subsection 
(e)(2) of such section 1033, as so amended, is further 
amended by striking ‘‘2016’’ and inserting ‘‘2017’’. 
SEC. 1012. STATEMENT OF POLICY ON PLAN CENTRAL 
AMERICA. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The stability and security of Central Amer-
ican nations have a direct impact on the stability 
and security of the United States. 
(2) Over the past decade, stability and increased 
security in the Republic of Colombia has pushed il-
licit trafficking to Central America bringing in-
creased violence and instability. 
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(3) Much of Central America has seen spikes in 
violence and homicides. In fiscal year 2013, the 
United Nations Office on Drugs and Crime released 
its Global Study on Homicide 2013. Four of the top 
five countries with the highest homicide rates in the 
world were Central American nations including Hon-
duras, Belize, El Salvador, and Guatemala. 
(4) In calendar year 2014, approximately 65,000 
unaccompanied alien children from Central America 
entered the United States through its southwest bor-
der. This number of such children who enter the 
United States during calendar year 2015 is expected 
to be approximately the same. 
(5) The southwest border of the United States 
continues to be porous to illicit trafficking of nar-
cotics, weapons, cash, and people. 
(6) In November 2014, Guatemala, Honduras, 
and El Salvador announced a Plan for the Alliance 
for Prosperity of the Northern Triangle. This plan is 
a comprehensive approach to address the ongoing vio-
lence and instability facing these three nations by 
stimulating economic opportunities, improving public 
safety and rule of law, and strengthening institutions 
to increase trust in the state. 
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(7) The United States Government has stated its 
support for the Alliance for Prosperity and included 
in the President’s fiscal year 2016 budget request 
$1,000,000,000 in Department of State funds, to sup-
port the strategy for United States engagement in 
Central America. According to the strategy, this fund-
ing will be focused on promoting prosperity and re-
gional economic integration, enhancing security, and 
promoting improved governance. 
(8) None of the President’s $1,000,000,000 budget 
request for the strategy for United States engagement 
in Central America includes any funding for Depart-
ment of Defense programs in the region. 
(9) The Department of Defense provides train-
ing, equipment, education, and interdiction efforts to 
address security challenges in Central America 
through detection and monitoring of illicit trafficking, 
assistance in illicit trafficking interdictions, and 
building partnership capacities. 
(10) The Department of Defense through its roles 
and missions, is executing a plan to address security 
challenges in Central America in conjunction with the 
United States Strategy for Engagement in Central 
America. 
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(b) POLICY.—It shall be the policy of the United States 
to prioritize a Plan Central America to address the threat-
ening levels of violence, instability, illicit trafficking, and 
transnational organized crime that challenge the sov-
ereignty of Central American nations and security of the 
United States. In order to address such issues, the Depart-
ment of Defense shall— 
(1) increase the efforts of the Department of De-
fense as the lead agency to detect and monitor the 
aerial and maritime illicit trafficking into the United 
States; 
(2) increase the efforts of the Department of De-
fense to support aerial and maritime illicit traf-
ficking interdiction efforts; 
(3) increase the efforts of the Department of De-
fense to build partnership capacity with partner na-
tions in Central America to confront security chal-
lenges through increased training opportunities, edu-
cation, and exercises; 
(4) enforce human rights requirements consistent 
with section 2249e of title 10, United States Code, 
and increase the training and education regarding 
human rights provided in Central American nations; 
and 
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(5) support interagency efforts in Central Amer-
ica addressing all levels of instability including devel-
opment, education, economic, political, and security 
challenges. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. RESTRICTIONS ON THE OVERHAUL AND REPAIR 
OF VESSELS IN FOREIGN SHIPYARDS. 
(a) IN GENERAL.—Section 7310(b)(1) of title 10, 
United States Code, is amended— 
(1) by striking ‘‘In the case’’ and inserting ‘‘(A) 
Except as provided in subparagraph (B), in the 
case’’; 
(2) by striking ‘‘during the 15-month’’ and all 
that follows through ‘‘United States)’’; 
(3) by inserting before the period at the end the 
following: ‘‘, other than in the case of voyage repairs’’; 
and 
(4) by adding at the end the following new sub-
paragraph: 
‘‘(B) The Secretary of the Navy may waive the appli-
cation of subparagraph (A) to a contract award if the Sec-
retary determines that the waiver is essential to the na-
tional security interests of the United States.’’. 
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(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the later of the following 
dates: 
(1) The date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2017. 
(2) October 1, 2016. 
SEC. 1022. EXTENSION OF AUTHORITY FOR REIMBURSE-
MENT OF EXPENSES FOR CERTAIN NAVY 
MESS OPERATIONS AFLOAT. 
(a) EXTENSION.—Subsection (b) of section 1014 of the 
Duncan Hunter National Defense Authorization Act for 
Fiscal Year 2009 (Public Law 110–417; 122 Stat. 4585), 
as amended by section 1021 of the Ike Skelton National De-
fense Authorization Act for Fiscal Year 2011 (Public Law 
111–383, 124 Stat. 4348), is amended by striking ‘‘Sep-
tember 30, 2015’’ and inserting ‘‘September 30, 2020’’. 
(b) TECHNICAL AND CLARIFYING AMENDMENTS.—Sub-
section (a) of such section is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘not more that’’ and inserting ‘‘not more 
than’’; and 
(2) in paragraph (2), by striking ‘‘Naval vessels’’ 
and inserting ‘‘such vessels’’. 
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SEC. 1023. AVAILABILITY OF FUNDS FOR RETIREMENT OR 
INACTIVATION 
OF 
TICONDEROGA 
CLASS 
CRUISERS OR DOCK LANDING SHIPS. 
(a) LIMITATION ON THE AVAILABILITY OF FUNDS.— 
Except as otherwise provided in this section, none of the 
funds authorized to be appropriated by this Act or otherwise 
made available for the Department of Defense for fiscal year 
2016 may be obligated or expended to retire, prepare to re-
tire, inactivate, or place in storage a cruiser or dock land-
ing ship. 
(b) CRUISER MODERNIZATION.— 
(1) IN GENERAL.—As provided by section 1026 
of the National Defense Authorization Act for Fiscal 
Year 2015 (Public Law 113–291; 128 Stat. 3490), the 
Secretary of the Navy shall begin the modernization 
of two cruisers during fiscal year 2016 only after the 
receipt of the materiel required to begin such mod-
ernization. Such modernization shall include— 
(A) hull, mechanical, and electrical up-
grades; and 
(B) combat systems modernizations. 
(2) DURATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the time period for such mod-
ernization shall not exceed two years. 
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(B) EXTENSION.—If the Secretary of the 
Navy determines that the scope of the moderniza-
tion cannot be reasonably completed in two 
years, the Secretary may extend the time period 
under subparagraph (A) for an additional six 
months. If the Secretary issues such an exten-
sion, the Secretary shall submit to the congres-
sional defense committees notice of the extension 
and the reasons the Secretary made such deter-
mination. 
(3) DELAY.—The Secretary of the Navy may 
delay the modernization required under paragraph 
(1) if the materiel required to begin the moderniza-
tion has not been received. 
SEC. 1024. LIMITATION ON THE USE OF FUNDS FOR RE-
MOVAL OF BALLISTIC MISSILE DEFENSE CA-
PABILITIES 
FROM 
TICONDEROGA 
CLASS 
CRUISERS. 
None of the funds authorized to be appropriated by this 
Act or otherwise made available for the Department of De-
fense may be used to remove ballistic missile defense capa-
bilities from any of the 5 Ticonderoga class cruisers 
equipped with such capabilities until the Secretary of the 
Navy certifies to the congressional defense committees that 
the Navy has— 
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(1) obtained the ballistic missile capabilities re-
quired by the most recent Navy Force Structure As-
sessment; or 
(2) determined to upgrade such cruisers with an 
equal or improved ballistic missile defense capability. 
Subtitle D—Counterterrorism 
SEC. 1031. PERMANENT AUTHORITY TO PROVIDE REWARDS 
THROUGH GOVERNMENT PERSONNEL OF AL-
LIED FORCES AND CERTAIN OTHER MODI-
FICATIONS TO DEPARTMENT OF DEFENSE 
PROGRAM TO PROVIDE REWARDS. 
(a) IN GENERAL.—Section 127b(c)(3) of title 10, 
United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘subpara-
graphs (B) and (C)’’ and inserting ‘‘subparagraph 
(B)’’; and 
(2) by striking subparagraphs (C) and (D). 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The section heading for 
section 127b of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 127b. Department of Defense rewards program’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 3 of such title is amended 
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by striking the item relating to section 127b and in-
serting the following new item: 
‘‘127b. Department of Defense rewards program.’’. 
SEC. 1032. CONGRESSIONAL NOTIFICATION OF SENSITIVE 
MILITARY OPERATIONS. 
Section 130f of title 10, United States Code, is amend-
ed— 
(1) by striking subsection (e); and 
(2) by redesignating subsection (f) as subsection 
(e). 
SEC. 1033. REPEAL OF SEMIANNUAL REPORTS ON OBLIGA-
TION AND EXPENDITURE OF FUNDS FOR 
COMBATING TERRORISM PROGRAM. 
Section 229 of title 10, United States Code, is amend-
ed— 
(1) by striking subsection (d); and 
(2) by redesignating subsection (e) as subsection 
(d). 
SEC. 1034. REPORTS TO CONGRESS ON CONTACT BETWEEN 
TERRORISTS AND INDIVIDUALS FORMERLY 
DETAINED AT UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
(a) Section 319(c) of the Supplemental Appropriations 
Act, 2009 (Public Law 111–32; 123 Stat. 1874; 10 U.S.C. 
801 note) is amended by inserting after paragraph (5) the 
following new paragraphs: 
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‘‘(6) A summary of all contact by any means of 
communication, including telecommunications, elec-
tronic or technical means, in person, written commu-
nications, or any other means of communication, re-
gardless of content, between any individual formerly 
detained at Naval Station, Guantanamo Bay, Cuba, 
and any individual known or suspected to be associ-
ated with a foreign terrorist group. 
‘‘(7) A description of whether any of the contact 
described in the summary required by paragraph (6) 
included any information or discussion about hos-
tilities against the United States or its allies or part-
ners.’’. 
(b) RULE OF CONSTRUCTION.—Nothing in this section 
or the amendments made by this section shall be construed 
to terminate, alter, modify, override, or otherwise affect any 
reporting of information required under section 319(c) of 
the Supplemental Appropriations Act, 2009 (Public Law 
111–32; 123 Stat. 1874; 10 U.S.C. 801 note) prior to the 
enactment of this section. 
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SEC. 1035. INCLUSION IN REPORTS TO CONGRESS INFOR-
MATION ABOUT RECIDIVISM OF INDIVIDUALS 
FORMERLY DETAINED AT UNITED STATES 
NAVAL STATION, GUANTANAMO BAY, CUBA. 
Section 319(c) of the Supplemental Appropriations 
Act, 2009 (Public Law 111–32; 123 Stat. 1874; 10 U.S.C. 
801 note), as amended by section 1034, is further amended 
by inserting after paragraph (7), as added by such section, 
the following new paragraphs: 
‘‘(8) For each individual described in paragraph 
(4), the period of time between the date on which the 
individual was released or transferred from Naval 
Station, Guantanamo Bay, Cuba, and the date on 
which it is confirmed that the individual is suspected 
or confirmed of reengaging in terrorist activities. 
‘‘(9) The average period of time described in 
paragraph (8) for all the individuals described in 
paragraph (4).’’. 
SEC. 1036. PROHIBITION ON THE USE OF FUNDS FOR THE 
TRANSFER OR RELEASE OF INDIVIDUALS DE-
TAINED AT UNITED STATES NAVAL STATION, 
GUANTANAMO BAY, CUBA. 
No amounts authorized to be appropriated or otherwise 
made available to the Department of Defense may be used 
during the period beginning on the date of the enactment 
of this Act and ending on December 31, 2016, to transfer, 
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release, or assist in the transfer or release to or within the 
United States, its territories, or possessions of Khalid 
Sheikh Mohammed or any other detainee who— 
(1) is not a United States citizen or a member 
of the Armed Forces of the United States; and 
(2) is or was held on or after January 20, 2009, 
at United States Naval Station, Guantanamo Bay, 
Cuba, by the Department of Defense. 
SEC. 1037. PROHIBITION ON USE OF FUNDS TO CONSTRUCT 
OR 
MODIFY 
FACILITIES 
IN 
THE 
UNITED 
STATES 
TO 
HOUSE 
DETAINEES 
TRANS-
FERRED FROM UNITED STATES NAVAL STA-
TION, GUANTANAMO BAY, CUBA. 
(a) IN GENERAL.—No amounts authorized to be ap-
propriated or otherwise made available to the Department 
of Defense may be used during the period beginning on the 
date of the enactment of this Act and ending on December 
31, 2016, to construct or modify any facility in the United 
States, its territories, or possessions to house any individual 
detained at Guantanamo for the purposes of detention or 
imprisonment in the custody or under the control of the 
Department of Defense. 
(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply to any modification of facilities at United 
States Naval Station, Guantanamo Bay, Cuba. 
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(c) INDIVIDUAL DETAINED
AT GUANTANAMO DE-
FINED.—In this section, the term ‘‘individual detained at 
Guantanamo’’ has the meaning given that term in section 
1039(f)(2). 
SEC. 1038. PROHIBITION ON USE OF FUNDS TO TRANSFER 
OR RELEASE INDIVIDUALS DETAINED AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO COMBAT ZONES. 
(a) IN GENERAL.—No amounts authorized to be ap-
propriated or otherwise made available for the Department 
of Defense may be used, during the period beginning on the 
date of the enactment of this Act and ending on December 
31, 2016, to transfer, release, or assist in the transfer or 
release of any individual detained in the custody or under 
the control of the Department of Defense at United States 
Naval Station, Guantanamo Bay, Cuba, to a combat zone. 
(b) COMBAT ZONE DEFINED.—In this section, the term 
‘‘combat zone’’ means any area designated as a combat zone 
for purposes of section 112 of the Internal Revenue Code 
of 1986 (26 U.S.C. 112) for which the income of a member 
of the Armed Forces was excluded during 2014, 2015, or 
2016 by reason of the member’s service on active duty in 
such area. 
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SEC. 1039. REQUIREMENTS FOR CERTIFICATIONS RELAT-
ING TO THE TRANSFER OF DETAINEES AT 
UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA, TO FOREIGN COUNTRIES 
AND OTHER FOREIGN ENTITIES. 
(a) CERTIFICATION REQUIRED PRIOR
TO TRANS-
FER.— 
(1) IN GENERAL.—Except as provided in para-
graph (2) and subsection (d), the Secretary of Defense 
may not use any amounts authorized to be appro-
priated or otherwise available to the Department of 
Defense during the period beginning on the date of the 
enactment of this Act and ending on December 31, 
2016, to transfer any individual detained at Guanta-
namo to the custody or control of the individual’s 
country of origin, any other foreign country, or any 
other foreign entity unless the Secretary submits to 
Congress the certification described in subsection (b) 
not later than 30 days before the transfer of the indi-
vidual. 
(2) EXCEPTION.—Paragraph (1) shall not apply 
to any action taken by the Secretary to transfer any 
individual detained at Guantanamo to effectuate an 
order affecting the disposition of the individual that 
is issued by a court or competent tribunal of the 
United States having lawful jurisdiction (which the 
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Secretary shall notify Congress of promptly after 
issuance). 
(b) CERTIFICATION.—A certification described in this 
subsection is a written certification made by the Secretary 
of Defense that— 
(1) the government of the foreign country or the 
recognized leadership of the foreign entity to which 
the individual detained at Guantanamo is to be 
transferred— 
(A) is not a designated state sponsor of ter-
rorism or a designated foreign terrorist organi-
zation; 
(B) maintains control over each detention 
facility in which the individual is to be detained 
if the individual is to be housed in a detention 
facility; 
(C) is not, as of the date of the certification, 
facing a threat that is likely to substantially af-
fect its ability to exercise control over the indi-
vidual; 
(D) has taken or agreed to take effective ac-
tions to ensure that the individual cannot take 
action to threaten the United States, its citizens, 
or its allies in the future; 
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(E) has taken or agreed to take such actions 
as the Secretary of Defense determines are nec-
essary to ensure that the individual cannot en-
gage or reengage in any terrorist activity; and 
(F) has agreed to share with the United 
States any information that— 
(i) is related to the individual or any 
associates of the individual; and 
(ii) could affect the security of the 
United States, its citizens, or its allies; and 
(2) includes an assessment, in classified or un-
classified form, of the capacity, willingness, and past 
practices (if applicable) of the foreign country or enti-
ty in relation to the Secretary’s certifications. 
(c) PROHIBITION IN CASES OF PRIOR CONFIRMED RE-
CIDIVISM.— 
(1) PROHIBITION.—Except as provided in para-
graph (2) and subsection (d), the Secretary of Defense 
may not use any amounts authorized to be appro-
priated or otherwise made available to the Depart-
ment of Defense to transfer any individual detained 
at Guantanamo to the custody or control of the indi-
vidual’s country of origin, any other foreign country, 
or any other foreign entity if there is a confirmed 
case of any individual who was detained at United 
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States Naval Station, Guantanamo Bay, Cuba, at 
any time after September 11, 2001, who was trans-
ferred to such foreign country or entity and subse-
quently engaged in any terrorist activity. 
(2) EXCEPTION.—Paragraph (1) shall not apply 
to any action taken by the Secretary to transfer any 
individual detained at Guantanamo to effectuate an 
order affecting the disposition of the individual that 
is issued by a court or competent tribunal of the 
United States having lawful jurisdiction (which the 
Secretary shall notify Congress of promptly after 
issuance). 
(d) NATIONAL SECURITY WAIVER.— 
(1) IN GENERAL.—The Secretary of Defense may 
waive the applicability to a detainee transfer of a cer-
tification requirement specified in subparagraph (D) 
or (E) of subsection (b)(1) or the prohibition in sub-
section (c), if the Secretary certifies the rest of the cri-
teria required by subsection (b) for transfers prohib-
ited by (c) and determines that— 
(A) alternative actions will be taken to ad-
dress the underlying purpose of the requirement 
or requirements to be waived; 
(B) in the case of a waiver of subparagraph 
(D) or (E) of subsection (b)(1), it is not possible 
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to certify that the risks addressed in the para-
graph to be waived have been completely elimi-
nated, but the actions to be taken under subpara-
graph (A) will substantially mitigate such risks 
with regard to the individual to be transferred; 
(C) in the case of a waiver of subsection (c), 
the Secretary has considered any confirmed case 
in which an individual who was transferred to 
the country subsequently engaged in terrorist ac-
tivity, and the actions to be taken under sub-
paragraph (A) will substantially mitigate the 
risk of recidivism with regard to the individual 
to be transferred; and 
(D) the transfer is in the national security 
interests of the United States. 
(2) REPORTS.—Whenever the Secretary makes a 
determination under paragraph (1), the Secretary 
shall submit to the appropriate committees of Con-
gress, not later than 30 days before the transfer of the 
individual concerned, the following: 
(A) A copy of the determination and the 
waiver concerned. 
(B) A statement of the basis for the deter-
mination, including— 
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(i) an explanation why the transfer is 
in the national security interests of the 
United States; 
(ii) in the case of a waiver of para-
graph (D) or (E) of subsection (b)(1), an 
explanation why it is not possible to certify 
that the risks addressed in the paragraph to 
be waived have been completely eliminated; 
and 
(iii) a classified summary of— 
(I) the individual’s record of co-
operation while in the custody of or 
under the effective control of the De-
partment of Defense; and 
(II) the agreements and mecha-
nisms in place to provide for con-
tinuing cooperation. 
(C) A summary of the alternative actions to 
be taken to address the underlying purpose of, 
and to mitigate the risks addressed in, the para-
graph or subsection to be waived. 
(D) The assessment required by subsection 
(b)(2). 
(e) RECORD OF COOPERATION.—In assessing the risk 
that an individual detained at Guantanamo will engage 
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in terrorist activity or other actions that could affect the 
security of the United States if released for the purpose of 
making a certification under subsection (b) or a waiver 
under subsection (d), the Secretary of Defense may give fa-
vorable consideration to any such individual— 
(1) who has substantially cooperated with United 
States intelligence and law enforcement authorities, 
pursuant to a pre-trial agreement, while in the cus-
tody of or under the effective control of the Depart-
ment of Defense; and 
(2) for whom agreements and effective mecha-
nisms are in place, to the extent relevant and nec-
essary, to provide for continued cooperation with 
United States intelligence and law enforcement au-
thorities. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Committee on Armed Services, the 
Committee on Appropriations, the Committee on 
Foreign Relations, and the Select Committee on 
Intelligence of the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Appropriations, the Committee on 
Foreign Affairs, and the Permanent Select Com-
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mittee on Intelligence of the House of Represent-
atives. 
(2) The term ‘‘individual detained at Guanta-
namo’’ means any individual located at United 
States Naval Station, Guantanamo Bay, Cuba, as of 
October 1, 2009, who— 
(A) is not a citizen of the United States or 
a member of the Armed Forces of the United 
States; and 
(B) is— 
(i) in the custody or under the control 
of the Department of Defense; or 
(ii) otherwise under detention at 
United States Naval Station, Guantanamo 
Bay, Cuba. 
(3) The term ‘‘foreign terrorist organization’’ 
means any organization so designated by the Sec-
retary of State under section 219 of the Immigration 
and Nationality Act (8 U.S.C. 1189). 
(g) REPEAL OF SUPERSEDED REQUIREMENTS AND 
LIMITATIONS.—Section 1035 of the National Defense Au-
thorization Act for Fiscal Year 2014 (Public Law 113–66; 
127 Stat. 851; 10 U.S.C. 801 note) is repealed. 
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SEC. 1040. SUBMISSION TO CONGRESS OF CERTAIN DOCU-
MENTS RELATING TO TRANSFER OF INDIVID-
UALS DETAINED AT GUANTANAMO TO QATAR. 
(a) SUBMISSION TO CONGRESS.—Not later than 30 
days after the date of the enactment of this Act, the Attorney 
General and the Secretary of Defense shall submit to the 
congressional defense committees and the Committees on the 
Judiciary of the Senate and House of Representatives all 
covered correspondence. 
(b) COVERED CORRESPONDENCE.—For purposes of 
this section, the term ‘‘covered correspondence’’— 
(1) means any correspondence between the De-
partment of Defense and the Department of Justice or 
any other agency or entity of the United States Gov-
ernment that— 
(A) relates to the transfer of individuals de-
tained at United States Naval Station, Guanta-
namo Bay, Cuba, to Qatar; 
(B) is dated any time between January 1, 
2013, and June 1, 2014; and 
(C) is in the custody of the Department of 
Justice or the Department of Defense; and 
(2) includes— 
(A) all relevant correspondence, including 
the email exchange described in June 11, 2014, 
testimony to the Committee on Armed Services of 
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the House of Representatives by the Secretary of 
Defense and the General Counsel of the Depart-
ment of Defense; and 
(B) any analysis of— 
(i) section 1035 of the National Defense 
Authorization Act for Fiscal Year 2014 
(Public Law 113–66; 127 Stat. 851; 10 
U.S.C. 801 note); 
(ii) section 8111 of the Consolidated 
Appropriations Act, 2014 (Public Law 113– 
76; 128 Stat. 131); 
(iii) section 1341 of title 31, United 
States Code (popularly known as ‘‘the 
Antideficiency Act’’); or 
(iv) Article II of the Constitution. 
(c) LIMITATION
ON
THE USE
OF FUNDS.—Of the 
amounts authorized to be appropriated or otherwise made 
available for the Office of the Secretary of Defense for fiscal 
year 2016, not more than 75 percent may be obligated or 
expended until the date of the submission of all covered cor-
respondence. 
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SEC. 1041. SUBMISSION OF UNREDACTED COPIES OF DOCU-
MENTS RELATING TO THE TRANSFER OF CER-
TAIN INDIVIDUALS DETAINED AT GUANTA-
NAMO TO QATAR. 
(a) UNREDACTED DOCUMENTS REQUIRED.— 
(1) FUTURE
SUBMISSIONS.—The Secretary of 
Defense shall submit an unredacted copy of any docu-
ment submitted to the Committee on Armed Services 
of the House of Representatives in response to a re-
quest from the Committee dated June 9, 2014, for in-
formation regarding the transfer of five individuals 
from United States Naval Station, Guantanamo Bay, 
Cuba, to Qatar. 
(2) PRIOR
SUBMISSIONS.—Not later than 30 
days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committee on 
Armed Services of the House of Representatives an 
unredacted copy of any redacted document that was 
submitted, before the date of the enactment of this Act, 
in response to a request dated June 9, 2014, for infor-
mation regarding the transfer of five individuals from 
United States Naval Station, Guantanamo Bay, 
Cuba, to Qatar. 
(b) LIMITATION
ON
THE USE
OF FUNDS.—Of the 
amounts authorized to be appropriated or otherwise made 
available for the Office of the Secretary of Defense for fiscal 
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year 2016, not more than 75 percent may be obligated or 
expended until the date of the submission of all documents 
required to be submitted under subsection (a)(2). 
Subtitle E—Miscellaneous 
Authorities and Limitations 
SEC. 1051. ENHANCEMENT OF AUTHORITY OF SECRETARY 
OF NAVY TO USE NATIONAL SEA-BASED DE-
TERRENCE FUND. 
(a) IN GENERAL.—Section 2218a of title 10, United 
States Code, is amended— 
(1) in subsection (c)(1), by striking ‘‘national 
sea-based deterrence vessels’’ and inserting ‘‘a class of 
twelve national sea-based deterrence vessels, and cross- 
program coordinated procurement efforts with other 
nuclear powered vessels’’; 
(2) in subsection (d), by inserting before the pe-
riod at the end the following: ‘‘and cross program co-
ordinated procurement efforts with other nuclear pow-
ered vessels’’; 
(3) by redesignating subsections (f) and (g) as 
subsections (j) and (l), respectively; 
(4) by inserting after subsection (e) the following 
new subsections: 
‘‘(f) AUTHORITY TO ENTER INTO ECONOMIC ORDER 
QUANTITY CONTRACTS.—(1) The Secretary of the Navy 
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may use funds deposited in the Fund to enter into contracts 
known as ‘economic order quantity contracts’ with private 
shipyards and other commercial or government entities to 
achieve economic efficiencies based on production economies 
for major components or subsystems. The authority under 
this subsection extends to the procurement of parts, compo-
nents, and systems (including weapon systems) common 
with and required for other nuclear powered vessels under 
joint economic order quantity contracts. 
‘‘(2) A contract entered into under paragraph (1) shall 
provide that any obligation of the United States to make 
a payment under the contract is subject to the availability 
of appropriations for that purpose, and that total liability 
to the Government for termination of any contract entered 
into shall be limited to the total amount of funding obli-
gated at time of termination. 
‘‘(g) AUTHORITY
TO BEGIN MANUFACTURING
AND 
FABRICATION
EFFORTS
PRIOR
TO
SHIP
AUTHORIZA-
TION.—(1) The Secretary of the Navy may use funds depos-
ited into the Fund to enter into contracts for advance con-
struction of national sea-based deterrence vessels to support 
achieving cost savings through workload management, man-
ufacturing efficiencies, or workforce stability, or to phase 
fabrication activities within shipyard and manage sub-tier 
manufacturer capacity. 
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‘‘(2) A contract entered into under paragraph (1) shall 
provide that any obligation of the United States to make 
a payment under the contract is subject to the availability 
of appropriations for that purpose, and that total liability 
to the Government for termination of any contract entered 
into shall be limited to the total amount of funding obli-
gated at time of termination. 
‘‘(h) AUTHORITY TO USE INCREMENTAL FUNDING TO 
ENTER INTO CONTRACTS FOR CERTAIN ITEMS.—(1) The 
Secretary of the Navy may use funds deposited into the 
Fund to enter into incrementally funded contracts for ad-
vance procurement of high value, long lead time items for 
nuclear powered vessels to better support construction sched-
ules and achieve cost savings through schedule reductions 
and properly phased installment payments. 
‘‘(2) A contract entered into under paragraph (1) shall 
provide that any obligation of the United States to make 
a payment under the contract is subject to the availability 
of appropriations for that purpose, and that total liability 
to the Government for termination of any contract entered 
into shall be limited to the total amount of funding obli-
gated at time of termination. 
‘‘(i) FACILITIES FUNDING.—The Secretary of the Navy 
may use funds deposited into the Fund to provide incentives 
for investments in critical infrastructure at nuclear capable 
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shipyards and critical sub-tier vendors. Additionally, the 
Secretary of the Navy may use such funds for certain can-
cellation costs in the event of significant changes to the 
Long Range Shipbuilding Strategy for nuclear powered ves-
sels.’’; 
(5) by inserting after subsection (j), as redesig-
nated by paragraph (3), the following new subsection: 
‘‘(k) REPORT TO CONGRESS.—(1) The Secretary of the 
Navy shall submit to the congressional defense committees, 
by March 1, 2016, and annually through the year 2025, 
a report on the Fund. Each such report shall identify sepa-
rately the amount allocated by ship for programs, projects, 
and activities for construction (including design of vessels), 
purchase, alteration, and conversion. At a minimum, each 
such report shall include— 
‘‘(A) information about the activities carried out 
using funds deposited into the Fund during the fiscal 
year covered by the report, including the status of 
class design and construction efforts, including pro-
grammatic schedules, procurement schedules, and 
funding requirements. 
‘‘(B) a plan detailing forecasted obligations and 
expenditures for construction (including design of ves-
sels), purchase, alteration, and conversion of vessels 
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by ship for the fiscal year following the fiscal year 
during which the report is submitted; and 
‘‘(C) the identification of the stable need and de-
sign for items, together with a description of any sav-
ings associated with the authorities provided in sub-
sections (e) and (f), as documented in cost estimates. 
‘‘(2) The Secretary of the Navy shall provide to the 
congressional defense committees notice in writing at least 
30 days before executing any significant deviation to the 
annual plan required under paragraph (1)(B).’’; and 
(6) in subsection (m), as so redesignated, by add-
ing at the end the following new paragraph: 
‘‘(3) The term ‘advance construction’ means 
shipyard manufacturing and fabrication activities 
(including sub-tier manufacturing of major compo-
nents or subsystems).’’. 
(b) AVAILABILITY OF CERTAIN UNOBLIGATED FUNDS 
FOR TRANSFER.—Section 1022(b)(1) of the National De-
fense Authorization Act for Fiscal Year 2015 (Public Law 
113–291; 128 Stat. 3487) is amended by striking ‘‘for the 
Navy for the Ohio Replacement Program’’ and inserting ‘‘to 
the Department of Defense’’. 
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SEC. 1055. INFORMATION-RELATED AND STRATEGIC COM-
MUNICATIONS CAPABILITIES ENGAGEMENT 
PILOT PROGRAM. 
(a) PILOT PROGRAM REQUIRED.—The Secretary of 
Defense may carry out a pilot program or multiple pilot 
programs under which the Secretary assesses information- 
related and strategic communications capabilities to sup-
port the tactical, operational, and strategic requirements of 
the geographic and functional combatant commanders, in-
cluding the urgent and emergent operational needs and the 
operational and theater security cooperation plans of such 
combatant commanders, to further United States national 
security objectives and strategic communications require-
ments. 
(b) ELEMENTS.—Any pilot program carried out under 
subsection (a) shall include each of the following elements: 
(1) Clearly defined goals and end-state objectives 
for the pilot program, including the traceability of 
such goals and objectives to the tactical, operational, 
or strategic requirements of the combatant com-
manders. 
(2) A process for measuring the performance and 
effectiveness of the pilot program. 
(3) A demonstration of a technology capability 
or concept to support the tactical, operational, or 
strategic needs of the combatant commanders. 
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(4) Supporting activities and coordinating ele-
ments with joint, interagency, intergovernmental, and 
multinational partners. 
(c) GOVERNANCE.—The Secretary shall create a gov-
ernance structure for executing any pilot program carried 
out under subsection (a) that allows for centralized over-
sight and planning of the program with program execution 
decentralized to the combatant commands. The Secretary 
shall provide a written charter for such a governance struc-
ture by not later than the date that is 30 days after the 
date on which the Secretary decides to carry out such a 
pilot program. 
(d) NOTIFICATION REQUIRED.—By not later than 14 
days after the date on which the Secretary decides to carry 
out a pilot program under subsection (a), the Secretary 
shall submit to the congressional defense committees written 
notice of the decision. Such notice shall include the scope 
of activities, funding required, sponsoring combatant com-
mander, anticipated participants, and expected duration of 
the pilot program. 
(e) TERMINATION.—The authority to carry out a pilot 
program under this section shall terminate on September 
30, 2022. 
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