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SEC. 818. CONTRACT CLOSEOUT AUTHORITY FOR SERVICES 
CONTRACTS. 
Section 836 of the National Defense Authorization 
Act for Fiscal Year 2017 (10 U.S.C. 2302 note) is amend-
ed— 
(1) by amending subsection (b)(1) to read as 
follows: 
‘‘(1) was entered into— 
‘‘(A) with respect to a contract or group of 
contracts for services, on a date that is the 
later of— 
‘‘(i) at least 7 fiscal years before the 
current fiscal year; and 
‘‘(ii) the number of years applicable to 
the contract or group of contracts in sub-
part 4.7 of the Federal Acquisition Regula-
tion (as in effect on April 1, 2020); 
‘‘(B) with respect to a contract or group of 
contracts not described in subparagraph (A), on 
a date that is at least 17 fiscal years before the 
current fiscal year;’’; 
(2) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(3) by inserting after subsection (e) the fol-
lowing new subsection: 
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‘‘(f) OVERSIGHT.—The Secretary of Defense, acting 
through the Director of the Defense Contract Manage-
ment Agency, shall establish and maintain a centralized 
capability with necessary expertise and resources to pro-
vide oversight of the closeout of a contract or group of 
contracts covered by this section.’’. 
SEC. 819. PLAN TO IMPROVE DEPARTMENT-WIDE MANAGE-
MENT OF INVESTMENTS IN WEAPON SYS-
TEMS. 
(a) PORTFOLIO
MANAGEMENT
PLAN.—The Sec-
retary of Defense shall direct the Under Secretary of De-
fense for Acquisition and Sustainment, in coordination 
with the Chairman of the Joint Chiefs of Staff, and the 
Director of Cost Assessment and Program Evaluation, to 
develop a plan to identify, develop, and acquire databases, 
analytical and financial tools, and workforce skills to im-
prove the Department of Defense-wide assessment, man-
agement, and optimization of the investments in weapon 
systems of the Department, including through consolida-
tion of duplicate or similar weapon system programs. 
(b) PLAN CONTENTS.—The plan developed under 
subsection (a) shall— 
(1) describe the databases and analytical and fi-
nancial tools in use by the Department of Defense 
that may be used to support the Department-wide 
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assessment, management, and optimization of the 
investments in weapon systems of the Department; 
(2) determine the database and analytical and 
financial tool requirements that must be met, and 
the workforce skills necessary, for more effective De-
partment-wide reviews, analyses, and management 
by the Secretary of the investments in weapon sys-
tems of the Department; 
(3) identify the skills described in paragraph 
(2) that are possessed by the workforce of the De-
partment; 
(4) identify the databases and analytical and fi-
nancial tools to be modified, developed, or acquired 
to improve the Department-wide reviews, analyses, 
and management of the investments in weapon sys-
tems of the Department; and 
(5) set forth a timeline for implementing the 
plan, including a timeline for the modification, devel-
opment, and acquisition of each database and ana-
lytical and financial tool identified under paragraph 
(4). 
(c) SUBMISSION TO CONGRESS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
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retary of Defense shall submit to Congress the plan 
developed under subsection (a). 
(2) FORM.—The plan submitted under para-
graph (1) shall be in an unclassified form but may 
contain a classified annex. 
SEC. 820. DOCUMENTATION PERTAINING TO COMMERCIAL 
ITEM DETERMINATIONS. 
Section 2380 of title 10, United States Code, is 
amended by— 
(1) redesignating subsection (b) as subsection 
(c); and 
(2) inserting after subsection (a) the following 
new subsection: 
‘‘(b) DETERMINATIONS REGARDING THE COMMER-
CIAL NATURE OF PRODUCTS OR SERVICES.— 
‘‘(1) IN GENERAL.—A contracting officer of the 
Department of Defense shall make a binding deter-
mination whether a particular product or service of-
fered by a contractor meets the definition of a com-
mercial product or commercial service. The con-
tracting officer may seek the advice of the cadre of 
experts established pursuant to section 831(b)(2) of 
the National Defense Authorization Act for Fiscal 
Year 2013 (Public Law 112–239; 126 Stat. 1842; 
10 U.S.C. 2306a note), or request the cadre of ex-
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perts to make a determination that a product or 
service is a commercial product or commercial serv-
ice. 
‘‘(2) MEMORANDUM.—Within 30 days after 
making a determination that a product or service is 
a commercial product or commercial service, the con-
tracting officer shall submit a written memorandum 
summarizing the determination, consistent with the 
template in Appendix B of the Department of De-
fense Guidebook for Acquiring Commercial Items 
(issued January 2018 and revised July 2019), to— 
‘‘(A) the Director of the Defense Contract 
Management Agency for inclusion in any data-
base established to fulfill the requirements of 
subsection (a)(2); and 
‘‘(B) the contractor asserting the commer-
cial nature of the product or service.’’. 
SEC. 820A. GUIDELINES AND RESOURCES ON THE ACQUISI-
TION 
OR 
LICENSING 
OF 
INTELLECTUAL 
PROPERTY. 
Section 2322 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(c) GUIDELINES AND RESOURCES.— 
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‘‘(1) IN GENERAL.—The Secretary of Defense, 
acting through the Under Secretary of Defense for 
Acquisition and Sustainment, shall develop guide-
lines and resources on the acquisition or licensing of 
intellectual property, including— 
‘‘(A) model forms for specially negotiated 
licenses described under section 2320(f) (as ap-
propriate); and 
‘‘(B) an identification of definitions, key 
terms, examples, and case studies that resolve 
ambiguities in the differences between— 
‘‘(i) detailed manufacturing and proc-
ess data; 
‘‘(ii) form, fit, and function data; and 
‘‘(iii) data required for operations, 
maintenance, installation, and training. 
‘‘(2) CONSULTATION.—In developing the guide-
lines and resources described in paragraph (1), the 
Secretary shall regularly consult with appropriate 
stakeholders, including large and small businesses, 
traditional and non-traditional contractors (including 
subcontractors), and maintenance repair organiza-
tions.’’. 
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SEC. 820B. REQUIREMENTS CONCERNING FORMER DE-
PARTMENT OF DEFENSE OFFICIALS AND 
LOBBYING ACTIVITIES. 
(a) REQUIREMENTS.— 
(1) IN
GENERAL.—Chapter 141 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2410t. Defense contractors report: requirements 
concerning former Department of De-
fense officials and lobbying activities 
‘‘(a) IN GENERAL.—Each contract for the procure-
ment of goods or services in excess of $10,000,000, other 
than a contract for the procurement of commercial prod-
ucts or commercial services, that is entered into by the 
Secretary of Defense shall include a provision under which 
the contractor agrees to submit to the Secretary of De-
fense, not later than April 1 of each year such contract 
is in effect, a written report setting forth the information 
required by subsection (b). 
‘‘(b) REPORT CONTENTS.—Except as provided in 
subsection (c), a report by a contractor under subsection 
(a) shall— 
‘‘(1) list the name of each person who— 
‘‘(A) is a former officer or employee of the 
Department of Defense or a former or retired 
member of the armed forces who served— 
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‘‘(i) in an Executive Schedule position 
under subchapter II of chapter 53 of title 
5; 
‘‘(ii) in a position in the Senior Exec-
utive Service under subchapter VIII of 
chapter 53 of title 5; 
‘‘(iii) in a position compensated at a 
rate of pay for grade O–6 or above under 
section 201 of title 37; or 
‘‘(iv) as a program manager, deputy 
program manager, procuring contracting 
officer, administrative contracting officer, 
source selection authority, member of the 
source selection evaluation board, or chief 
of a financial or technical evaluation team 
for such a contract; and 
‘‘(B) during the preceding calendar year 
was provided compensation by the contractor, if 
such compensation was first provided by the 
contractor not more than four years after such 
former officer or employee of the Department of 
Defense, or such former or retired member of 
the armed forces, left service in the Department 
of Defense; 
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‘‘(2) in the case of each person listed under 
paragraph (1)(A)— 
‘‘(A) identify the department or entity in 
which such person was employed or served on 
active duty during the last two years of such 
person’s service with the Department of De-
fense; 
‘‘(B) state such person’s job title and iden-
tify any project on which such person per-
formed any work or for which such person pro-
vided any goods pursuant to a contract with the 
Department of Defense during the last two 
years of such person’s service with the Depart-
ment; and 
‘‘(C) state such person’s current job title 
with the contractor and identify each project on 
which such person has performed any work or 
for which such person provided any goods on 
behalf of the contractor; and 
‘‘(3) if the contractor is a client, include— 
‘‘(A) a statement that— 
‘‘(i) lists each specific issue for which 
the contractor, any employee of the con-
tractor, or any lobbyist paid by the con-
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tractor engaged in lobbying activities di-
rected at the Department of Defense; and 
‘‘(ii) specifies the Federal rule or reg-
ulation, Executive order, or other program, 
policy, contract, or position of the Depart-
ment of Defense to which the lobbying ac-
tivities described in clause (i) related; 
‘‘(iii) lists each lobbying activity di-
rected at the Department of Defense that 
the contractor, any employee of the con-
tractor, or any lobbyist paid by the con-
tractor has engaged in on behalf of the 
contractor, including— 
‘‘(I) each document prepared by 
the contractor, any employee of the 
contractor, or any lobbyist paid by the 
contractor that was submitted to an 
officer or employee of the Department 
of Defense by the lobbyist; 
‘‘(II) each meeting that was a 
lobbying contact with an officer or 
employee of the Department of De-
fense, including the subject of the 
meeting, the date of the meeting, and 
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the name and position of each indi-
vidual who attended the meeting; 
‘‘(III) each phone call made to an 
officer or employee of the Department 
of Defense that was a lobbying con-
tact, including the subject of the 
phone call, the date of the phone call, 
and the name and position of each in-
dividual who was on the phone call; 
and 
‘‘(IV) each electronic communica-
tion sent to an officer or employee of 
the Department of Defense that was a 
lobbying contact, including the subject 
of the electronic communication, the 
date of the electronic communication, 
and the name and position of each in-
dividual who received the electronic 
communication; 
‘‘(iv) lists the name of each employee 
of the contractor who— 
‘‘(I) did not participate in a lob-
bying contact with an officer or em-
ployee of the Department of Defense; 
and 
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‘‘(II) engaged in lobbying activi-
ties in support of a lobbying contact 
with an officer or employee of the De-
partment of Defense; and 
‘‘(v) describes the lobbying activities 
referred to in clause (iv)(II); and 
‘‘(B) a copy of any document transmitted 
to an officer or employee of the Department of 
Defense in the course of the lobbying activities 
described in subparagraph (A)(iv)(II). 
‘‘(c) DUPLICATE INFORMATION NOT REQUIRED.— 
An annual report submitted by a contractor pursuant to 
subsection (b) need not provide information with respect 
to any former officer or employee of the Department of 
Defense or former or retired member of the armed forces 
if such information has already been provided in a pre-
vious annual report filed by such contractor under this 
section. 
‘‘(d) PUBLIC ACCESS TO REPORTS.—The Secretary 
of Defense shall make any report described under sub-
section (a) publicly available on a website of the Depart-
ment of Defense not later than 45 days after the receipt 
of such report. 
‘‘(e) DEFINITIONS.—In subsection (b)(3), the terms 
‘client’, ‘lobbying activities’, ‘lobbying contact’, and ‘lob-
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byist’ have the meanings given the terms in section 3 of 
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 141 of such title 
is amended by adding at the end the following new 
item: 
‘‘Sec. 2410t. Defense contractors: requirements concerning former Department 
of Defense officials.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act, and shall apply with respect to contracts 
entered into on or after that date. 
SEC. 820C. COMMERCIAL PRODUCT DETERMINATION AP-
PLIES TO COMPONENTS AND SUPPORT SERV-
ICES. 
Section 2306a(b)(4) of title 10, United States Code, 
is amended— 
(1) in subparagraph (A), by striking ‘‘subse-
quent procurements of such product or service’’ and 
inserting: ‘‘subsequent procurements of— 
‘‘(i) the commercial product; 
‘‘(ii) a component of the commercial 
product; 
‘‘(iii) a service for maintenance or re-
pair of the commercial product; or 
‘‘(iv) the commercial service.’’; and 
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(2) in subparagraph (B)— 
(A) by striking ‘‘request a review’’ and in-
serting the following: ‘‘provide a detailed expla-
nation for not making the presumption de-
scribed in subsection (A) along with a request 
for a review’’; and 
(B) by adding at the end the following: 
‘‘When conducting such review, the head of the 
contracting activity may consider evidence of 
the commercial nature of the product or service 
under review that is provided by an offeror.’’ 
Subtitle C—Industrial Base 
Matters 
SEC. 821. QUARTERLY NATIONAL TECHNOLOGY AND IN-
DUSTRIAL BASE BRIEFINGS. 
(a) IN GENERAL.—Section 2504 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(a) ANNUAL REPORT.—The Secretary’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) QUARTERLY BRIEFINGS.—(1) The Secretary of 
Defense shall ensure that the congressional defense com-
mittees receive quarterly briefings on the progress of the 
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Department of Defense to address the prioritized list of 
gaps or vulnerabilities in the national technology and in-
dustrial base described in subsection (a)(3)(B) as follows: 
‘‘(A) One quarterly briefing per year shall be 
provided by the Secretary of the Army. 
‘‘(B) One quarterly briefing per year shall be 
provided by the Secretary of the Navy. 
‘‘(C) One quarterly briefing per year shall be 
provided by the Secretary of the Air Force. 
‘‘(D) One quarterly briefing per year shall be 
provided by all appropriate heads of the Defense 
Agencies identified under subsection (a)(3)(B)(ii). 
‘‘(2) Each briefing under paragraph (1) shall include 
an update of the progress of addressing such gaps or 
vulnerabilities by the Secretary concerned or the appro-
priate head of a Defense Agency, including an update 
on— 
‘‘(A) actions taken to address such gaps or 
vulnerabilities; 
‘‘(B) the mitigation strategies necessary to ad-
dress such gaps or vulnerabilities; and 
‘‘(C) the proposed timeline for action to address 
such gaps or vulnerabilities.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
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(1) HEADING
AMENDMENT.—The heading of 
section 2504 of such title is amended to read as fol-
lows: 
‘‘§ 2504. National technology and industrial base: an-
nual report and quarterly briefings’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter II of chapter 148 of such title 
is amended by striking the item relating to section 
2504 and inserting the following new item: 
‘‘2504. National technology and industrial base: annual report and quarterly 
briefing.’’. 
SEC. 822. EXPANSION ON THE PROHIBITION ON ACQUIRING 
CERTAIN METAL PRODUCTS. 
(a) IN GENERAL.—Section 2533c of title 10, United 
States Code, is amended— 
(1) in subsection (a)(1), by striking ‘‘material 
melted’’ and inserting ‘‘material mined, refined, sep-
arated, melted,’’; and 
(2) in subsection (c)(3)(A)(i), by striking 
‘‘tungsten’’ and inserting ‘‘covered material’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date that is 3 years 
after the date of the enactment of this Act. 
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SEC. 823. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) TECHNICAL
AMENDMENT.—The second sub-
section (k) of section 2534 of title 10, United States Code 
(relating to Implementation of Auxiliary Ship Component 
Limitation), is redesignated as subsection (l). 
(b) COMPONENTS FOR AUXILIARY SHIPS.—Section 
2534(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph: 
‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (l), the following components: 
‘‘(A) Large medium-speed diesel engines. 
‘‘(B) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(C) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(D) Shipboard cranes. 
‘‘(E) Spreaders for shipboard cranes.’’. 
(c) IMPLEMENTATION.—Subsection (l) of section 
2534 of title 10, United States Code, as redesignated by 
subsection (a), is amended— 
(1) by redesignating the second sentence to ap-
pear as flush text at the end; 
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(2) by striking ‘‘auxiliary ship after the date’’ 
and inserting the following: ‘‘auxiliary ship— 
‘‘(1) with respect to large medium-speed diesel 
engines described under subparagraph (A) of such 
subsection, after the date’’; 
(3) in paragraph (1) (as so designated), by 
striking ‘‘Navy.’’ and inserting ‘‘Navy; and’’; and 
(4) by inserting after paragraph (1) (as so des-
ignated) the following new paragraph: 
‘‘(2) with respect to components listed in sub-
paragraphs (B) through (E) of such subsection, 
after the date of the enactment of the National De-
fense Authorization Act for Fiscal Year 2021 using 
funds available for National Defense Sealift Fund 
programs or Shipbuilding and Conversion, Navy.’’. 
SEC. 824. PREFERENCE FOR SOURCING RARE EARTH MATE-
RIALS FROM THE NATIONAL TECHNOLOGY 
AND INDUSTRIAL BASE. 
(a) IN GENERAL.—The Secretary of Defense shall, 
to the maximum extent practicable, acquire materials that 
are determined to be strategic and critical materials re-
quired to meet the defense, industrial, and essential civil-
ian needs of the United States in the following order of 
preference: 
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(1) From sources located within the United 
States. 
(2) From sources located within the national 
technology and industrial base (as defined in section 
2500 of title 10, United States Code). 
(3) From other sources as appropriate. 
(b) ELIMINATE DEPENDENCY ON CHINA.—Not later 
than 180 days after the date of the enactment of this Act, 
the Under Secretary of Defense for Acquisition and 
Sustainment, in consultation with the Under Secretary of 
Defense (Comptroller), the Vice Chairman of the Joint 
Chiefs of Staff, and the appropriate Under Secretary of 
State, as designated by the Secretary of State, shall issue 
guidance to ensure the elimination of the dependency of 
the United States on rare earth materials from China by 
fiscal year 2035. 
SEC. 825. ENHANCED DOMESTIC CONTENT REQUIREMENT 
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS. 
(a) ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense 
committees a report assessing the domestic source 
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content of any procurement carried out in connec-
tion with major defense acquisition programs. 
(2) INFORMATION REPOSITORY.—The Secretary 
of Defense shall establish an information repository 
for the collection and analysis of information related 
to domestic source content that can be used for con-
tinuous data analysis and program management ac-
tivities. 
(b) ENHANCED
DOMESTIC
CONTENT
REQUIRE-
MENT.— 
(1) IN GENERAL.—For purposes of chapter 83 
of title 41, United States Code, manufactured arti-
cles, materials, or supplies procured in connection 
with a major defense acquisition program shall be 
deemed to be manufactured substantially all from 
articles, materials, or supplies mined, produced, or 
manufactured in the United States, if such compo-
nent articles, materials, or supplies— 
(A) not later than October 1, 2021, com-
prise 75 percent of the manufactured articles, 
materials, or supplies; 
(B) not later than October 1, 2022, com-
prise 80 percent of the manufactured articles, 
materials, or supplies; 
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(C) not later than October 1, 2023, com-
prise 85 percent of the manufactured articles, 
materials, or supplies; 
(D) not later than October 1, 2024, com-
prise 90 percent of the manufactured articles, 
materials, or supplies; 
(E) not later than October 1, 2025, com-
prise 95 percent of the manufactured articles, 
materials, or supplies; and 
(F) not later than October 1, 2026, com-
prise 100 percent of the manufactured articles, 
materials, or supplies. 
(2) WAIVER.—Before Milestone A approval (as 
defined in section 2366a(d) of title 10, United 
States Code) is granted for a major defense acquisi-
tion program, the Secretary of Defense shall deter-
mine whether or not to grant a waiver of the re-
quirements of paragraph (1). 
(3) EFFECTIVE DATE.—The domestic content 
requirement under paragraph (1) applies to con-
tracts entered into on or after October 1, 2021. 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—In this section, the term ‘‘major defense acquisi-
tion program’’ has the meaning given in section 2430 of 
title 10, United States Code. 
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SEC. 826. ADDITIONAL REQUIREMENTS PERTAINING TO 
PRINTED CIRCUIT BOARDS. 
(a) PURCHASES.—Beginning in fiscal year 2023, the 
Secretary of Defense shall require that any contractor or 
subcontractor that provides covered printed circuit boards 
for use by the Department of Defense to certify that, of 
the total value of the covered printed circuit boards pro-
vided by such contractor or subcontractor pursuant to a 
contract with the Department of Defense, not less than 
the percentages set forth in subsection (b) were manufac-
tured and assembled within a covered country. 
(b) IMPLEMENTATION.—In making a certification 
under subsection (a), a contractor or subcontractor shall 
use the following percentages: 
(1) During fiscal years 2023 through 2027, the 
greater of— 
(A) 50 percent; or 
(B) 75 percent, if the Secretary of Defense 
has determined that suppliers in covered coun-
tries are capable of supplying 75 percent of De-
partment of Defense requirements for printed 
circuit boards. 
(2) During fiscal years 2028 through 2032, the 
greater of— 
(A) 75 percent; or 
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(B) 100 percent, if the Secretary of De-
fense has determined that suppliers in covered 
countries are capable of supplying 100 percent 
of Department of Defense requirements for 
printed circuit boards. 
(3) Beginning in fiscal year 2033, 100 percent. 
(c) REMEDIATION.— 
(1) IN
GENERAL.—In the event that a con-
tractor or subcontractor is unable to make the cer-
tification required under subsection (a), the Sec-
retary may accept covered printed circuit boards 
from such contractor or subcontractor for up to 1 
year while requiring the contractor to complete a re-
mediation plan. Such a plan shall be submitted to 
the congressional defense committees and shall re-
quire the contractor or subcontractor that failed to 
make the certification required under subsection (a) 
to— 
(A) audit its supply chain to identify any 
areas of security vulnerability and noncompli-
ance with section 224 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public 
Law 116–92); and 
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(B) meet the requirements of subsection 
(a) within 1 year after the initial missed certifi-
cation deadline. 
(2) RESTRICTION.—No contractor or subcon-
tractor that has supplied covered printed circuit 
boards while under a remediation plan shall be eligi-
ble to enter into another remediation plan under 
subsection (c) for a period of 5 years. 
(d) WAIVER.—The Secretary of Defense may waive 
the requirement under subsection (a) with respect to a 
contractor or subcontractor if the Secretary determines 
that— 
(1) there are no significant national security 
concerns regarding counterfeiting, quality, or unau-
thorized access created by accepting covered printed 
circuit boards under such waiver; and 
(2) the contractor is otherwise in compliance 
with all relevant cybersecurity provisions relating to 
members of the defense industrial base, including 
section 224 of the National Defense Authorization 
Act for Fiscal Year 2020 (Public Law 116–92). 
(e) AVAILABILITY EXCEPTION.—Subsection (a) shall 
not apply to the extent that the Secretary of Defense or 
the Secretary of the military department concerned deter-
mines that covered printed circuit boards of satisfactory 
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quality and sufficient quantity, in the required form, can-
not be procured as and when needed from covered coun-
tries. 
(f) DEFINITIONS.—In this section: 
(1) COVERED
COUNTRY.—The term ‘‘covered 
country’’ means— 
(A) the United States; or 
(B) a foreign country whose government 
has a memorandum of understanding or agree-
ment with the United States that— 
(i) where applicable, complies with the 
requirements of section 36 of the Arms 
Export Control Act (22 U.S.C. 2776) and 
with section 2457 of title 10, United 
States Code; and 
(ii) either— 
(I) requires the United States to 
purchase 
supplies 
from 
foreign 
sources for the purposes of offsetting 
sales made the by United States Gov-
ernment or United States firms under 
approved programs serving defense re-
quirements; or 
(II) under which the United 
States and such government agree to 
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remove barriers to purchase supplies 
produced in such foreign country or 
services performed by sources of such 
foreign country. 
(2) COVERED PRINTED CIRCUIT BOARD.— 
(A) IN
GENERAL.—The term ‘‘covered 
printed circuit board’’ means any printed circuit 
board that is— 
(i) a product that is not a commercial 
product (as defined in section 103 of title 
41, United States Code); or 
(ii) a commercial product (as defined 
in section 103 of title 41, United States 
Code), other than a commercially available 
off-the-shelf item (as defined in section 
104 of title 41, United States Code) not 
described in subparagraph (B). 
(B) COMMERCIALLY AVAILABLE OFF-THE- 
SHELF ITEMS DESCRIBED.—The commercially 
available off-the-shelf items (as defined in sec-
tion 104 of title 41, United States Code) de-
scribed in this subparagraph are such items 
that are acquired under a contract with an 
award value that is greater than the micro-pur-
chase threshold under section 2338 of title 10, 
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United States Code, for use as an integral com-
ponent in a system designed for— 
(i) telecommunications, including data 
communications and fifth-generation cel-
lular communications; 
(ii) data storage; 
(iii) medical applications; 
(iv) networking; 
(v) computing; 
(vi) radar; 
(vii) munitions; or 
(viii) any other system that the Sec-
retary of Defense determines should be 
covered under this section. 
(3) 
SUBCONTRACTOR.—The 
term 
‘‘subcon-
tractor’’ includes subcontractors at any tier. 
SEC. 827. REPORT ON USE OF DOMESTIC NONAVAILABILITY 
DETERMINATIONS. 
Not later than September 30, 2021, and annually 
thereafter, the Secretary of Defense shall submit a report 
to congressional defense committees— 
(1) describing in detail the use of any waiver or 
exception by the Department of Defense to the re-
quirements of chapter 83 of title 41, United States 
Code, or section 2533a of title 10, United States 
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Code, relating to domestic nonavailability determina-
tions; 
(2) specifying the type of waiver or exception 
used; and 
(3) providing an assessment of the impact on 
the use of such waivers or exceptions due to the 
COVID–19 pandemic and associated challenges with 
investments in domestic sources. 
SEC. 828. SENSE OF CONGRESS ON THE PROHIBITION ON 
CERTAIN TELECOMMUNICATIONS AND VIDEO 
SURVEILLANCE SERVICES OR EQUIPMENT. 
(a) FINDINGS.—Congress finds the following: 
(1) Prohibiting the use of telecommunications 
and video surveillance products or services from cer-
tain Chinese entities within the Federal Govern-
ment’s supply chain is essential to our national secu-
rity. 
(2) Section 889 of the John S. McCain Na-
tional Defense Authorization Act for Fiscal Year 
2019 (Public Law 115–232; 132 Stat. 1917; 41 
U.S.C. note prec. 3901) restricts Federal agencies 
from procuring, contracting with entities that use, or 
funding the purchase of certain telecommunications 
products of Chinese companies determined by Con-
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gress to pose a substantial threat to the security of 
our communication infrastructure. 
(3) Specifically, section 889(a)(1)(B) of such 
Act, effective August 13, 2020, will prohibit Federal 
agencies from entering into, extending, or renewing 
a contract with an entity that uses covered tele-
communications and video surveillance equipment or 
services from designated Chinese companies, includ-
ing Huawei and ZTE, in their supply chains. 
(4) As of July 1, 2020, the Federal Acquisition 
Regulatory Council has yet to release a draft rule 
for public comment on the implementation of the 
prohibitions described in section 889(a)(1)(B) of 
such Act, leaving Federal agencies and contractors 
that provide equipment and services to the Federal 
Government without implementation guidance nec-
essary to adequately plan for or comply with the 
prohibitions. 
(5) Belated, and then hurried, implementation 
of this critical prohibition puts at risk the Federal 
Government’s ability to acquire essential goods and 
services and increases vulnerability in the supply 
chain through inconsistent implementation. 
(6) A senior Department of Defense leader tes-
tified on June 10, 2020, that, ‘‘I am very concerned 
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about being able to implement [the prohibition] in 
August, as well as totally comply within two years 
* * * I believe we need more time’’. 
(7) Subsequent to the enactment of the John S. 
McCain National Defense Authorization Act for Fis-
cal Year 2019 (Public Law 115–232), Congress es-
tablished the Federal Acquisition Security Council 
(FASC)—comprised of senior officials from the Of-
fice of Management and Budget, General Services 
Administration, Department of Defense, Department 
of Homeland Security and the intelligence commu-
nity—to streamline the Federal Government’s sup-
ply chain risk management efforts and develop cri-
teria and processes for supply chain information 
sharing among executive agencies. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) successful implementation of the prohibition 
on using or procuring certain telecommunications 
and video surveillance equipment under section 889 
of the John S. McCain National Defense Authoriza-
tion Act for Fiscal Year 2019 (Public Law 115–232; 
132 Stat. 1917; 41 U.S.C. note prec. 3901) is crit-
ical to protecting the supply chain of the Federal 
Government, and Federal agencies should draw upon 
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the expert resources available (such as the Federal 
Acquisition Security Council established under sub-
chapter III of chapter 13 of title 41, United States 
Code) to ensure implementation of such prohibition 
is done in a comprehensive and deliberative manner; 
and 
(2) the Federal Acquisition Regulatory Council 
shall ensure successful implementation of such pro-
hibition by providing sufficient time for public com-
ment and review of any related rulemaking. 
SEC. 829. DOMESTIC SOURCING REQUIREMENTS FOR ALU-
MINUM. 
(a) FINDING.—Congress finds that aluminum pro-
duction capacity in the United States is critical to United 
States national security. 
(b) DESIGNATION
OF ALUMINUM
AS SPECIALTY 
METAL.—Section 2533b(l) of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(5) Aluminum and aluminum alloys.’’ 
(c) FEDERAL HIGHWAY ADMINISTRATION.—Section 
313(a) of title 23, United States Code, is amended by 
striking ‘‘unless steel, iron, and manufactured products’’ 
and inserting ‘‘unless steel, iron, aluminum, and manufac-
tured products’’. 
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(d) FEDERAL TRANSIT ADMINISTRATION.—Section 
5323(j) of title 49, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘only if the 
steel, iron, and manufactured goods’’ and inserting 
‘‘only if the steel, iron, aluminum, and manufactured 
goods’’; 
(2) in paragraph (2)(B), by striking ‘‘steel, 
iron, and goods’’ and inserting ‘‘steel, iron, alu-
minum, and manufactured goods’’; 
(3) in paragraph (5), by striking ‘‘or iron’’ and 
inserting ‘‘, iron, or aluminum’’; 
(4) in paragraph (6)(A)(i), by inserting ‘‘, alu-
minum’’ after ‘‘iron’’; 
(5) in paragraph (10), by inserting ‘‘, alu-
minum’’ after ‘‘iron’’; and 
(6) in paragraph (12)— 
(A) in the paragraph heading, by striking 
‘‘AND IRON’’ and inserting ‘‘, IRON, AND ALU-
MINUM’’; and 
(B) by striking ‘‘and iron’’ and inserting ‘‘, 
iron, and aluminum’’. 
(e) FEDERAL RAILROAD ADMINISTRATION.—Section 
22905(a) of title 49, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘only if the 
steel, iron, and manufactured goods’’ and inserting 
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‘‘only if the steel, iron, aluminum, and manufactured 
products’’; 
(2) in paragraph (2)(B), by inserting ‘‘, alu-
minum’’ after ‘‘iron’’; and 
(3) in paragraph (9), by inserting ‘‘, alu-
minum’’ after ‘‘iron’’. 
(f) FEDERAL AVIATION ADMINISTRATION.—Section 
50101(a) of title 49, United States Code, is amended by 
striking ‘‘steel and manufactured goods’’ and inserting 
‘‘steel, aluminum, and manufactured goods’’. 
(g) AMTRAK.—Section 24305(f)(2) of title 49, United 
States Code, is amended by inserting ‘‘(including alu-
minum)’’ after ‘‘supplies’’ each place it appears. 
SEC. 830. REPORT ON ALUMINUM REFINING, PROCESSING, 
AND MANUFACTURING. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that, consistent with any determinations made pur-
suant to section 101 of the Defense Production Act of 
1950 (50 U.S.C. 4511), the refining of aluminum and the 
development of processing and manufacturing capabilities 
for aluminum, including a geographically diverse set of 
such capabilities, may have important implications for the 
defense industrial base and the national defense. 
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(b) REPORT.—Not later than September 30, 2021, 
the Secretary of Defense shall submit to the appropriate 
congressional committees a report on— 
(1) how authorities under the Defense Produc-
tion Act of 1950 (50 U.S.C. 4501 et seq.) could be 
used to provide incentives to increase activities relat-
ing to refining aluminum and the development of 
processing and manufacturing capabilities for alu-
minum; and 
(2) whether a new initiative would further the 
development of such processing and manufacturing 
capabilities for aluminum. 
(c) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committees on Armed Services of 
the Senate and the House of Representatives; 
and 
(B) the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate. 
(2) NATIONAL DEFENSE.—The term ‘‘national 
defense’’ shall have the same meaning as such term 
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under section 702 of the Defense Production Act of 
1950 (50 U.S. C. 4552). 
SEC. 830A. BRIEFING ON THE SUPPLY CHAIN FOR SMALL 
UNMANNED 
AIRCRAFT 
SYSTEM 
COMPO-
NENTS. 
(a) BRIEFING REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition and Sustainment, in 
consultation with the Administrator of the National Aero-
nautics and Space Administration, shall provide to the ap-
propriate congressional committees a briefing on the sup-
ply chain for small unmanned aircraft system components, 
including a discussion of current and projected future de-
mand for small unmanned aircraft system components. 
(b) ELEMENTS.—The briefing under subsection (a) 
shall include the following: 
(1) The sustainability and availability of secure 
sources of critical components domestically and from 
sources in allied and partner nations. 
(2) The cost, availability, and quality of secure 
sources of critical components and other relevant in-
formation domestically and from sources in allied 
and partner nations. 
(3) The plan of the Department of Defense to 
address any gaps or deficiencies presented in para-
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graphs (1) and (2), including through the use of 
funds available under the Defense Production Act of 
1950 (50 U.S.C. 4501 et seq.) and partnerships 
with the National Aeronautics and Space Adminis-
tration and other public and private stakeholders. 
(4) Such other information as the Under Sec-
retary of Defense for Acquisition and Sustainment 
determines to be appropriate. 
(c) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the congressional defense committees; 
(B) the Committee on Science, Space, and 
Technology and the Committee on Transpor-
tation and Infrastructure of the House of Rep-
resentatives; and 
(C) the Committee on Commerce, Science, 
and Transportation of the Senate. 
(2) SMALL UNMANNED AIRCRAFT; UNMANNED 
AIRCRAFT
SYSTEM.—The terms ‘‘small unmanned 
aircraft’’ and ‘‘unmanned aircraft system’’ have the 
meanings given, respectively, in section 44801 of 
title 49, United States Code. 
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SEC. 830B. PROHIBITION ON PROCUREMENT OR OPER-
ATION OF FOREIGN-MADE UNMANNED AIR-
CRAFT SYSTEMS. 
(a) PROHIBITION ON PROCUREMENT.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the head of an executive 
agency may not procure any commercial off-the-shelf 
drone or covered unmanned aircraft, or any compo-
nent thereof for use in such a drone or unmanned 
aircraft, that is manufactured or assembled by a 
covered foreign entity, including any flight control-
lers, radios, core processors, printed circuit boards, 
cameras, or gimbals. 
(2) EXEMPTION.—The Secretary of Homeland 
Security and the Secretary of Defense are exempt 
from the requirements of paragraph (1) if the oper-
ation or procurement— 
(A) is for the purposes of training, testing, 
or analysis for— 
(i) counter-UAS system surrogate in-
telligence; 
(ii) electronic warfare; or 
(iii) information warfare operations; 
and 
(B) is required in the national interest of 
the United States. 
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(3) 
PROCUREMENT
OF
PRINTED
CIRCUIT 
BOARDS.— 
(A) IN GENERAL.—Beginning in fiscal year 
2023, the head of an executive agency shall re-
quire that any contractor or subcontractor that 
provides printed circuit boards for use in cov-
ered unmanned aircraft or commercial off-the- 
shelf drones to certify that, of the total value of 
the printed circuit boards provided by such con-
tractor or subcontractor pursuant to a contract 
with an executive agency, not more than the 
percentages set forth in subparagraph (B) were 
manufactured and assembled by a covered for-
eign entity. 
(B) PERCENTAGES.—In making a certifi-
cation under subsection (a), a contractor or 
subcontractor shall use the following percent-
ages: 
(i) During fiscal years 2023 through 
2027, the lesser of— 
(I) 50 percent; or 
(II) 25 percent, if the relevant 
head of an executive agency has deter-
mined that suppliers other than cov-
ered foreign entities are capable of 
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supplying 75 percent of the require-
ments of the executive agency for 
printed circuit boards. 
(ii) During fiscal years 2028 through 
2032, the lesser of— 
(I) 25 percent; or 
(II) 0 percent, if the relevant 
head of an executive agency has deter-
mined that suppliers other than cov-
ered foreign entities are capable of 
supplying 100 percent the require-
ments of the executive agency for 
printed circuit boards. 
(C) REMEDIATION.— 
(i) IN GENERAL.—If a contractor or 
subcontractor is unable to make the certifi-
cation required under subparagraph (A), 
the head of an executive agency may ac-
cept printed circuit boards from such con-
tractor or subcontractor for up to 1 year 
while requiring the contractor to complete 
a remediation plan. Such plan shall be sub-
mitted to Congress and shall require the 
contractor or subcontractor that failed to 
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make the certification required under sub-
paragraph (A) to— 
(I) audit its supply chain to iden-
tify any areas of security vulner-
ability; and 
(II) meet the requirements of 
subparagraph (A) within 1 year after 
the initial missed certification dead-
line. 
(ii) RESTRICTION.—No contractor or 
subcontractor that has supplied printed 
circuit boards while under a remediation 
plan shall be eligible to enter into another 
remediation plan under subparagraph (C) 
for a period of 5 years. 
(iii) WAIVER.—The head of an execu-
tive agency may waive the requirement 
under subparagraph (A) with respect to a 
contractor or subcontractor if the head of 
an executive agency determines that— 
(I) there are no significant na-
tional security concerns regarding 
counterfeiting, quality, or unauthor-
ized access created by accepting print-
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ed circuit boards under such waiver; 
and 
(II) the contractor is otherwise in 
compliance with all cybersecurity re-
quirements applicable to such con-
tractor under Federal laws or regula-
tions. 
(iv) AVAILABILITY EXCEPTION.—Sub-
paragraph (A) shall not apply to the extent 
that the head of an executive agency deter-
mines that printed circuit boards of satis-
factory quality and sufficient quantity, in 
the required form, cannot be procured as 
and when needed from entities that are not 
covered foreign entities. 
(4) WAIVER.—The head of an executive agency 
may waive the prohibition under paragraph (1), ex-
cept with respect to a contract to procure printed 
circuit boards for use in covered unmanned aircraft 
or commercial off-the-shelf drones, on a case-by-case 
basis with the approval of the Secretary of Home-
land Security or the Secretary of Defense and notifi-
cation to Congress. 
(5) 
COMPONENT
PROHIBITION
APPLICA-
BILITY.—Except as otherwise provided in this sub-
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section, the prohibition under paragraph (1) regard-
ing components of commercial off-the-shelf drones or 
covered unmanned aircraft shall apply only to con-
tracts for the procurement of such components that 
are entered into on or after the date that is 2 years 
after the date of the enactment of this Act. 
(b) PROHIBITION ON OPERATION.— 
(1) PROHIBITION.— 
(A) IN
GENERAL.—Beginning not later 
than 180 days after the date of the enactment 
of this Act, the head of an executive agency 
may not operate a commercial off-the-shelf 
drone or covered unmanned aircraft manufac-
tured or assembled by a covered foreign entity. 
(B) PHASE-IN PERIOD FOR EXISTING CON-
TRACTS.—The prohibition under subparagraph 
(A) shall not apply, during the 1-year period 
beginning on the date of the enactment of this 
Act, to commercial off-the-shelf drones and cov-
ered unmanned aircraft procured through a 
contract entered into before the date of the en-
actment of this Act. 
(2) EXEMPTION.—The Secretary of Homeland 
Security and the Secretary of Defense are exempt 
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from the restriction under paragraph (1) if the oper-
ation— 
(A) is for the purposes of training, testing, 
or analysis for— 
(i) counter-UAS system surrogate in-
telligence; 
(ii) electronic warfare; or 
(iii) information warfare operations; 
and 
(B) is required in the national interest of 
the United States. 
(3) WAIVER.—The head of an executive agency 
may waive the prohibition under paragraph (1) on a 
case-by-case basis with the approval of the Secretary 
of Homeland Security or the Secretary of Defense 
and notification to Congress. 
(4) REGULATIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Di-
rector of the Office of Management and Budget, in 
coordination with the Secretary of Homeland Secu-
rity, Secretary of Transportation, the Attorney Gen-
eral, and such other Federal departments and agen-
cies as determined by the Director of the Office of 
Management and Budget, and in consultation with 
the Under Secretary of Commerce for Standards 
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and Technology, shall establish a Governmentwide 
policy for the operation of UASs for non-Depart-
ment of Defense and non-intelligence community op-
erations. 
(c) PROHIBITION ON USE OF FEDERAL FUNDS.— 
The requirements described in subsection (a) shall apply 
with respect to the use of Federal funds awarded through 
a contract, grant, or cooperative agreement, or made avail-
able to a State or local government, or any subdivision 
thereof. 
(d) COMPTROLLER GENERAL REPORT.—Not later 
than 90 days after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit 
to Congress a report on the quantity of commercial off- 
the-shelf drones and covered unmanned aircraft procured 
by Federal departments and agencies from covered foreign 
entities. 
(e) INTERACTION WITH OTHER LAW.—Section 848 
of the National Defense Authorization Act for Fiscal Year 
2020 (10 U.S.C. 2302 note) does not apply with respect 
to a commercial off-the-shelf drone or covered unmanned 
aircraft, or any component thereof intended for use in 
such a drone or unmanned aircraft, to which the provi-
sions of this Act apply. 
(f) DEFINITIONS.—In this section: 
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(1) COMMERCIAL
OFF-THE-SHELF
DRONE.— 
The term ‘‘commercial off-the-shelf drone’’ means a 
covered unmanned aircraft that is a commercially 
available off-the-shelf item (as defined in section 104 
of title 41, United States Code). 
(2) COVERED
FOREIGN
ENTITY.—The term 
‘‘covered foreign entity’’ means— 
(A) a covered entity (as determined by the 
Secretary of Commerce); 
(B) 
any 
entity 
that 
is 
subject 
to 
extrajudicial direction from a foreign govern-
ment, as determined by the Director of Na-
tional Intelligence; 
(C) any entity the Secretary of Homeland 
Security, in coordination with the Director of 
National Intelligence, the Secretary of Defense, 
and the Secretary of State, determines poses a 
national security risk; 
(D) any entity subject to influence or con-
trol by the Government of the People Republic 
of China or the Communist Party of the Peo-
ple’s Republic of China, as determined by the 
Secretary of Homeland Security; and 
(E) any subsidiary or affiliate of an entity 
described in subparagraphs (A) through (D). 
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(3) COVERED
UNMANNED
AIRCRAFT.—The 
term ‘‘covered unmanned aircraft’’ means an un-
manned aircraft or unmanned aircraft system as 
such terms are defined, respectively, in section 
44801 of title 49, United States Code. 
(4) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given such term in section 
105 of title 5, United States Code. 
(5) INTELLIGENCE
COMMUNITY.—The term 
‘‘intelligence community’’ has the meaning given 
such term in section 3 of the National Security Act 
of 1947 (50 U.S.C. 3003). 
(6) UAS.—The term ‘‘UAS’’ has the meaning 
given the term ‘‘unmanned aircraft system’’ in sec-
tion 44801 of title 49, United States Code. 
SEC. 
830C. 
SENSE 
OF 
CONGRESS 
ON 
GAPS 
OR 
VULNERABILITIES IN THE NATIONAL TECH-
NOLOGY AND INDUSTRIAL BASE. 
It is the sense of Congress that in preparing the an-
nual report required by section 2504 of title 10, United 
States Code, the Secretary of Defense shall include the 
following: 
(1) An assessment of gaps or vulnerabilities in 
the national technology and industrial base (as de-
fined in section 2500 of title 10, United States 
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Code) with respect to intellectual property theft as 
related to the development and long-term sustain-
ability of defense technologies. 
(2) The extent to which, if any, foreign adver-
saries engage in operations to exploit such gaps or 
vulnerabilities. 
(3) Recommendations to mitigate or address 
any such gaps or vulnerabilities identified by the 
Secretary. 
(4) Any other matters the Secretary of Defense 
determines should be included. 
SEC. 830D. REPORT ON PARTNERSHIPS FOR RARE EARTH 
MATERIAL SUPPLY CHAIN SECURITY. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to Congress a report that— 
(1) assesses the ability of the Department of 
Defense to facilitate partnerships with institutions of 
higher education (as defined in section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 1001)) 
that receive grants for the purpose of enhancing the 
security and stability of supply chain for domestic 
rare earth materials for the National Defense Stock-
pile; and 
(2) identifies barriers to such partnerships; and 
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(3) provides recommendations as to how the 
Secretary of Defense may improve these partner-
ships. 
Subtitle D—Small Business Matters 
SEC. 831. TRANSFER OF VERIFICATION OF SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY VETERANS OR SERVICE-DISABLED VET-
ERANS TO THE SMALL BUSINESS ADMINIS-
TRATION. 
(a) TRANSFER DATE.—For purposes of this section, 
the term ‘‘transfer date’’ means the date that is 2 years 
after the date of enactment of this section, except that 
such date may be extended an unlimited number of times 
by a period of not more than 6 months if the Adminis-
trator of the Small Business Administration and the Sec-
retary of Veterans Affairs jointly issue a notice to Con-
gress and the Law Revision Counsel of the House of Rep-
resentatives containing— 
(1) a certification that such extension is nec-
essary; 
(2) the rationale for and the length of such ex-
tension; and 
(3) a plan to comply with the requirements of 
this section within the timeframe of the extension. 
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(b) AMENDMENT TO AND TRANSFER OF VETERAN- 
OWNED AND SERVICE-DISABLED VETERAN-OWNED BUSI-
NESS DATABASE.— 
(1) AMENDMENT
OF
VETERAN-OWNED
AND 
SERVICE-DISABLED
VETERAN-OWNED
BUSINESS 
DATABASE.—Effective on the transfer date, section 
8127 of title 38, United States Code, is amended— 
(A) in subsection (e)— 
(i) by striking ‘‘the Secretary’’ and in-
serting ‘‘the Administrator’’; and 
(ii) by striking ‘‘subsection (f)’’ and 
inserting ‘‘section 36 of the Small Business 
Act’’; 
(B) in subsection (f)— 
(i) by striking ‘‘the Secretary’’ each 
place such term appears, other than in the 
last place such term appears under para-
graph (2)(A), and inserting ‘‘the Adminis-
trator’’; 
(ii) in paragraph (1), by striking 
‘‘small business concerns owned and con-
trolled by veterans with service-connected 
disabilities’’ each place such term appears 
and inserting ‘‘small business concerns 
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owned and controlled by service-disabled 
veterans’’; 
(iii) in paragraph (2)— 
(I) in subparagraph (A), by strik-
ing ‘‘to access’’ and inserting ‘‘to ob-
tain from the Secretary of Veterans 
Affairs’’; and 
(II) by striking subparagraph (B) 
and inserting the following: 
‘‘(B) For purposes of this subsection— 
‘‘(i) the Secretary of Veterans Affairs shall— 
‘‘(I) verify an individual’s status as a vet-
eran or a service-disabled veteran; and 
‘‘(II) establish a system to permit the Ad-
ministrator to access, but not alter, such 
verification; and 
‘‘(ii) the Administrator shall verify— 
‘‘(I) the status of a business concern as a 
small business concern; and 
‘‘(II) the ownership and control of such 
business concern. 
‘‘(C) The Administrator may not certify a concern 
under subsection (b) or section 36A if the Secretary of 
Veterans Affairs cannot provide the verification described 
under subparagraph (B)(i)(I).’’; 
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(iv) by striking paragraphs (4) and 
(7); 
(v) by redesignating paragraphs (5) 
and (6) as paragraphs (4) and (5), respec-
tively, and redesignating paragraph (8) as 
paragraph (6); 
(vi) in paragraph (4), as so redesig-
nated, by striking ‘‘The Secretary’’ and in-
serting ‘‘The Administrator’’; and 
(vii) in paragraph (6), as so redesig-
nated— 
(I) in subparagraph (A)— 
(aa) by striking ‘‘verify the 
status of the concern as a small 
business concern or the owner-
ship or control of the concern’’ 
and inserting ‘‘certify the status 
of the concern as a small busi-
ness concern owned and con-
trolled by veterans (under section 
36A) or a small business concern 
owned and controlled by service- 
disabled veterans (under section 
36(g))’’; and 
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(bb) 
by 
striking 
‘‘verification’’ and inserting ‘‘cer-
tification’’; 
(II) in subparagraph (B)— 
(aa) in clause (i), by striking 
‘‘small business concern owned 
and controlled by veterans with 
service-connected 
disabilities’’ 
and inserting ‘‘small business 
concern owned and controlled by 
service-disabled veterans’’; and 
(bb) in clause (ii)— 
(AA) by amending sub-
clause (I) to read as follows: 
‘‘(I) the Secretary of Veterans Affairs or 
the Administrator; or’’; and 
(BB) in subclause (II), 
by striking ‘‘the contracting 
officer of the Department’’ 
and inserting ‘‘the applicable 
contracting officer’’; and 
(III) by striking subparagraph 
(C); 
(C) by redesignating subsection (k) (relat-
ing to definitions) as subsection (l); 
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(D) by inserting after subsection (j) (relat-
ing to annual reports) the following: 
‘‘(k) ANNUAL
TRANSFER
FOR
CERTIFICATION 
COSTS.—For each fiscal year, the Secretary of Veterans 
Affairs shall reimburse the Administrator in an amount 
necessary to cover any cost incurred by the Administrator 
for certifying small business concerns owned and con-
trolled by veterans that do not qualify as small business 
concerns owned and controlled by service-disabled veterans 
for the Secretary for purposes of this section and section 
8128 of this title. The Administrator is authorized to ac-
cept such reimbursement. The amount of any such reim-
bursement shall be determined jointly by the Secretary 
and the Administrator and shall be provided from fees col-
lected by the Secretary under multiple-award schedule 
contracts. Any disagreement about the amount shall be 
resolved by the Director of the Office of Management and 
Budget.’’; and 
(E) subsection (l) (relating to definitions), 
as so redesignated, by adding at the end the 
following: 
‘‘(4) The term Administrator means the Admin-
istrator of the Small Business Administration.’’. 
(2) TRANSFER
OF
REQUIREMENTS
RELATING 
TO DATABASE TO THE SMALL BUSINESS ACT.—Ef-
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fective on the transfer date, subsection (f) of section 
8127 of title 38, United States Code (as amended by 
paragraph (1)), is transferred to section 36 of the 
Small Business Act (15 U.S.C. 657f), inserted so as 
to appear after subsection (e). 
(3) 
CONFORMING
AMENDMENTS.—The 
fol-
lowing amendments shall take effect on the transfer 
date: 
(A) 
SMALL
BUSINESS
ACT.—Section 
3(q)(2)(C)(i)(III) of the Small Business Act (15 
U.S.C. 632(q)(2)(C)(i)(III)) is amended by 
striking ‘‘section 8127(f) of title 38, United 
States Code’’ and inserting ‘‘section 36’’. 
(B) TITLE 38.—Section 8128 of title 38, 
United States Code, is amended by striking 
‘‘section 8127(f) of this title’’ and inserting 
‘‘section 36 of the Small Business Act’’. 
(c) ADDITIONAL REQUIREMENTS FOR DATABASE.— 
(1) ADMINISTRATION ACCESS TO DATABASE BE-
FORE THE TRANSFER DATE.—During the period be-
tween the date of the enactment of this section and 
the transfer date, the Secretary of Veterans Affairs 
shall provide the Administrator of the Small Busi-
ness Administration with access to the contents of 
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the database described under section 8127(f) of title 
38, United States Code. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
section or the amendments made by this section may 
be construed— 
(A) as prohibiting the Administrator of the 
Small Business Administration from combining 
the contents of the database described under 
section 8127(f) of title 38, United States Code, 
with other databases maintained by the Admin-
istration; or 
(B) as requiring the Administrator to use 
any system or technology related to the data-
base described under section 8127(f) of title 38, 
United States Code, on or after the transfer 
date to comply with the requirement to main-
tain a database under subsection (f) of section 
36 of the Small Business Act (as transferred 
pursuant to subsection (b)(2) of this section). 
(3) RECOGNITION OF THE ISSUANCE OF JOINT 
REGULATIONS.—The date specified under section 
1832(e) of the National Defense Authorization Act 
for Fiscal Year 2017 (15 U.S.C. 632 note) shall be 
deemed to be October 1, 2018. 
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(d) PROCUREMENT PROGRAM FOR SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY SERVICE-DIS-
ABLED VETERANS.— 
(1) PROCUREMENT PROGRAM FOR SMALL BUSI-
NESS
CONCERNS
OWNED
AND
CONTROLLED
BY 
SERVICE-DISABLED VETERANS.—Section 36 of the 
Small Business Act (15 U.S.C. 657f) is amended— 
(A) by striking subsections (d) and (e); 
(B) by redesignating subsections (a), (b), 
and (c) as subsections (c), (d), and (e) respec-
tively; 
(C) by inserting before subsection (c), as 
so redesignated, the following: 
‘‘(a) CONTRACTING OFFICER DEFINED.—For pur-
poses of this section, the term ‘contracting officer’ has the 
meaning given such term in section 2101 of title 41, 
United States Code. 
‘‘(b) CERTIFICATION
OF SMALL BUSINESS CON-
CERNS OWNED AND CONTROLLED BY SERVICE-DISABLED 
VETERANS.—With respect to a procurement program or 
preference established under this Act that applies to prime 
contractors, the Administrator shall— 
‘‘(1) certify the status of the concern as a 
‘small business concern owned and controlled by 
service-disabled veterans’; and 
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‘‘(2) require the periodic recertification of such 
status.’’; 
(D) in subsection (d), as so redesignated, 
by striking ‘‘and that the award can be made 
at a fair market price’’ and inserting ‘‘, that 
the award can be made at a fair market price, 
and if each concern is certified by the Adminis-
trator as a small business concern owned and 
controlled by service-disabled veterans’’; and 
(E) by adding at the end the following: 
‘‘(g) 
CERTIFICATION
REQUIREMENT.—Notwith-
standing subsection (c), a contracting officer may only 
award a sole source contract to a small business concern 
owned and controlled by service-disabled veterans or a 
contract on the basis of competition restricted to small 
business concerns owned and controlled by service-disabled 
veterans if such a concern is certified by the Administrator 
as a small business concern owned and controlled by serv-
ice-disabled veterans. 
‘‘(h) ENFORCEMENT; PENALTIES.— 
‘‘(1) VERIFICATION OF ELIGIBILITY.—In car-
rying out this section, the Administrator shall estab-
lish procedures relating to— 
‘‘(A) the filing, investigation, and disposi-
tion by the Administration of any challenge to 
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the eligibility of a small business concern to re-
ceive assistance under this section (including a 
challenge, filed by an interested party, relating 
to the veracity of a certification made or infor-
mation provided to the Administration by a 
small business concern under subsection (b)); 
and 
‘‘(B) verification by the Administrator of 
the accuracy of any certification made or infor-
mation provided to the Administration by a 
small business concern under subsection (b). 
‘‘(2) EXAMINATIONS.— 
‘‘(A) EXAMINATION OF APPLICANTS.—The 
procedures established under paragraph (1) 
shall provide for a program of examinations by 
the Administrator of any small business concern 
making a certification or providing information 
to the Administrator under subsection (b), to 
determine the veracity of any statements or in-
formation provided as part of such certification 
or otherwise provided under subsection (b). 
‘‘(B) EXAMINATION
OF
CERTIFIED
CON-
CERNS.—The 
procedures 
established 
under 
paragraph (1) shall provide for the examination 
of risk-based samples of small business con-
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cerns certified under subsection (b), or of any 
small business concern that the Administrator 
believes poses a particular risk or with respect 
to which the Administrator receives specific and 
credible information alleging that the small 
business concern no longer meets eligibility re-
quirements to be certified as a small business 
concern owned and controlled by service-dis-
abled veterans. 
‘‘(3) PENALTIES.—In addition to the penalties 
described in section 16(d), any small business con-
cern that is determined by the Administrator to have 
misrepresented the status of that concern as a small 
business concern owned and controlled by service- 
disabled veterans for purposes of subsection (b), 
shall be subject to— 
‘‘(A) section 1001 of title 18, United 
States Code; 
‘‘(B) sections 3729 through 3733 of title 
31, United States Code; and 
‘‘(C) section 8127(g) of title 38, United 
States Code. 
‘‘(i) PROVISION OF DATA.—Upon the request of the 
Administrator, the head of any Federal department or 
agency shall promptly provide to the Administrator such 
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information as the Administrator determines to be nec-
essary to carry out subsection (b) or to be able to certify 
the status of the concern as a small business concern 
owned and controlled by veterans under section 36A.’’. 
(2) PENALTIES
FOR
MISREPRESENTATION.— 
Section 16 of the Small Business Act (15 U.S.C. 
645) is amended— 
(A) in subsection (d)(1)— 
(i) by striking ‘‘, a’’ and inserting ‘‘, 
a ‘small business concern owned and con-
trolled by service-disabled veterans’, a 
‘small business concern owned and con-
trolled by veterans’, a’’; and 
(ii) in paragraph (A), by striking ‘‘9, 
15, or 31’’ and inserting ‘‘8, 9, 15, 31, 36, 
or 36A’’; and 
(B) in subsection (e), by striking ‘‘, a’’ and 
inserting ‘‘, a ‘small business concern owned 
and controlled by service-disabled veterans’, a 
‘small business concern owned and controlled by 
veterans’, a’’. 
(e) CERTIFICATION
FOR SMALL BUSINESS CON-
CERNS OWNED AND CONTROLLED BY VETERANS.—The 
Small Business Act (15 U.S.C. 631 et seq.) is amended 
by inserting after section 36 the following new section: 
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‘‘SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY VETERANS. 
‘‘(a) IN GENERAL.—With respect to the program es-
tablished under section 8127 of title 38, United States 
Code, the Administrator shall— 
‘‘(1) certify the status of the concern as a 
‘small business concern owned and controlled by vet-
erans’; and 
‘‘(2) require the periodic recertification of such 
status. 
‘‘(b) ENFORCEMENT; PENALTIES.— 
‘‘(1) VERIFICATION OF ELIGIBILITY.—In car-
rying out this section, the Administrator shall estab-
lish procedures relating to— 
‘‘(A) the filing, investigation, and disposi-
tion by the Administration of any challenge to 
the eligibility of a small business concern to re-
ceive assistance under this section (including a 
challenge, filed by an interested party, relating 
to the veracity of a certification made or infor-
mation provided to the Administration by a 
small business concern under subsection (a)); 
and 
‘‘(B) verification by the Administrator of 
the accuracy of any certification made or infor-
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mation provided to the Administration by a 
small business concern under subsection (a). 
‘‘(2) EXAMINATION OF APPLICANTS.—The pro-
cedures established under paragraph (1) shall pro-
vide for a program of examinations by the Adminis-
trator of any small business concern making a cer-
tification or providing information to the Adminis-
trator under subsection (a), to determine the verac-
ity of any statements or information provided as 
part of such certification or otherwise provided 
under subsection (a). 
‘‘(3) PENALTIES.—In addition to the penalties 
described in section 16(d), any small business con-
cern that is determined by the Administrator to have 
misrepresented the status of that concern as a small 
business concern owned and controlled by veterans 
for purposes of subsection (a), shall be subject to— 
‘‘(A) section 1001 of title 18, United 
States Code; 
‘‘(B) sections 3729 through 3733 of title 
31, United States Code; and 
‘‘(C) section 8127(g) of title 38, United 
States Code.’’. 
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(f) STATUS OF SELF-CERTIFIED SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY SERVICE-DIS-
ABLED VETERANS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, any small business concern that 
self-certified as a small business concern owned and 
controlled by service-disabled veterans shall— 
(A) if the concern files a certification ap-
plication with the Administrator of the Small 
Business Administration before the end of the 
1-year period beginning on the transfer date, 
maintain such self-certification until the Admin-
istrator makes a determination with respect to 
such certification; and 
(B) if the concern does not file such a cer-
tification application before the end of the 1- 
year period beginning on the transfer date, lose, 
at the end of such 1-year period, any self-cer-
tification of the concern as a small business 
concern owned and controlled by service-dis-
abled veterans. 
(2) NON-APPLICABILITY
TO
DEPARTMENT
OF 
VETERANS AFFAIRS.—Paragraph (1) shall not apply 
to participation in contracts (including subcontracts) 
with the Department of Veterans Affairs. 
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(3) NOTICE.—The Administrator shall notify 
any small business concern that self-certified as a 
small business concern owned and controlled by serv-
ice-disabled veterans about the requirements of this 
section, including the transfer date and any exten-
sion of such transfer date made pursuant to sub-
section (a), and make such notice publicly available, 
on— 
(A) the date of the enactment of this sec-
tion; and 
(B) the date on which an extension de-
scribed under subsection (a) is approved. 
(g) TRANSFER OF THE CENTER FOR VERIFICATION 
AND EVALUATION OF THE DEPARTMENT OF VETERANS 
AFFAIRS TO THE SMALL BUSINESS ADMINISTRATION.— 
(1) 
ABOLISHMENT.—The 
Center 
for 
Verification and Evaluation of the Department of 
Veterans Affairs defined under section 74.1 of title 
38, Code of Federal Regulations, is abolished effec-
tive on the transfer date. 
(2) TRANSFER OF FUNCTIONS.—All functions 
that, immediately before the effective date of this 
subsection, were functions of the Center for 
Verification and Evaluation shall— 
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(A) on the date of enactment of this sec-
tion, be functions of both the Center for 
Verification and Evaluation and the Small 
Business Administration, except that the Small 
Business Administration shall not have any au-
thority to carry out any verification functions of 
the Center for Verification and Evaluation; and 
(B) on the transfer date, be functions of 
the Small Business Administration. 
(3) TRANSFER OF ASSETS.—So much of the 
personnel, property, and records employed, used, 
held, available, or to be made available in connection 
with a function transferred under this subsection 
shall be available to the Small Business Administra-
tion at such time or times as the President directs 
for use in connection with the functions transferred. 
(4) REFERENCES.—Any reference in any other 
Federal law, Executive order, rule, regulation, or 
delegation of authority, or any document of or per-
taining to a function of the Center for Verification 
and Evaluation that is transferred under this section 
is deemed, after the transfer date, to refer to the 
Small Business Administration. 
(h) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this sec-
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tion and every 6 months thereafter until the transfer date, 
the Administrator of the Small Business Administration 
and Secretary of Veterans Affairs shall jointly issue a re-
port to the Committees on Appropriations, Small Busi-
ness, and Veterans’ Affairs of the House of Representa-
tives and the Committees on Appropriations, Small Busi-
ness and Entrepreneurship, and Veterans’ Affairs of the 
Senate on the planning for the transfer of functions and 
property required under this section and the amendments 
made by this section on the transfer date. Such report 
shall include— 
(1) whether and how the verification database 
and operations of the Center for Verification and 
Evaluation of the Department of Veterans Affairs 
will be incorporated into the existing certification 
database of the Small Business Administration; 
(2) projections for the numbers and timing, in 
terms of fiscal year, of— 
(A) already verified concerns that will 
come up for recertification; and 
(B) self-certified concerns that are ex-
pected to apply for certification; 
(3) an explanation of how outreach to veteran 
service organizations, the service-disabled veteran- 
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owned and veteran-owned small business community, 
and other stakeholders will be conducted; and 
(4) other pertinent information determined by 
the Administrator and the Secretary. 
SEC. 832. EQUITABLE ADJUSTMENTS TO CERTAIN CON-
STRUCTION CONTRACTS. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended by inserting after section 
15 the following new section: 
‘‘SEC. 15A. EQUITABLE ADJUSTMENTS TO CONSTRUCTION 
CONTRACTS. 
‘‘(a) REQUEST FOR AN EQUITABLE ADJUSTMENT.— 
A small business concern performing a construction con-
tract that was awarded by an agency may submit a re-
quest for an equitable adjustment to the contracting offi-
cer of such agency if the contracting officer directs a 
change in the work within the general scope of the con-
tract without the agreement of the small business concern. 
Such request shall— 
‘‘(1) be timely made pursuant to the terms of 
the contract; and 
‘‘(2) comply with Federal regulations regarding 
equitable adjustments, including specifying addi-
tional costs resulting from such change in the work 
within the general scope of the contract. 
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‘‘(b) AMOUNT.—Upon receipt of a request for equi-
table adjustment under subsection (a), the agency shall 
provide to the small business concern an interim partial 
payment in an amount that is at least 50 percent of the 
costs identified in the request for equitable adjustment 
under subsection (a)(2). 
‘‘(c) LIMITATION.—Any interim partial payment 
made under this section shall not be deemed to be an ac-
tion to definitize the request for an equitable adjustment. 
‘‘(d) FLOW-DOWN OF INTERIM PARTIAL PAYMENT 
AMOUNTS.—A small business concern that requests an eq-
uitable adjustment under this section shall pay to a first 
tier subcontractor or supplier the portion of the interim 
partial payment received that is attributable to the in-
creased costs of performance incurred by the first tier sub-
contractor or supplier due to the change in the work with-
in the general scope of the contract. A subcontractor or 
supplier at any tier that receives a portion of an interim 
partial payment under this section shall pay its subcon-
tractor or supplier the appropriate portion of such pay-
ment.’’. 
(b) IMPLEMENTATION.—The Administrator of the 
Small Business Administration shall implement the re-
quirements of this section not later than the first day of 
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the first full fiscal year beginning after the date of the 
enactment of this Act. 
SEC. 833. EXEMPTION OF CERTAIN CONTRACTS AWARDED 
TO SMALL BUSINESS CONCERNS FROM CAT-
EGORY MANAGEMENT REQUIREMENTS. 
(a) IN
GENERAL.—The Small Business Act is 
amended— 
(1) by redesignating section 49 as section 50; 
and 
(2) by inserting after section 48 the following 
new section: 
‘‘SEC. 49. EXEMPTION OF CERTAIN CONTRACTS FROM CAT-
EGORY MANAGEMENT REQUIREMENTS. 
‘‘(a) IN GENERAL.—A contract awarded under sec-
tion 8(a), 8(m), 31, or 32 that is classified as tier 0— 
‘‘(1) shall be exempt from the procedural re-
quirements of any Federal rule or guidance on cat-
egory management or successor strategies for con-
tract consolidation; and 
‘‘(2) may not be included when measuring the 
attainment of any goal or benchmark established 
under any Federal rule or guidance on category 
management or successor strategies for contract 
consolidation, unless the inclusion of such contract 
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aids in the achievement of such a goal or bench-
mark. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) CATEGORY MANAGEMENT.—The term ‘cat-
egory management’ has the meaning given such 
term by the Director of the Office of Management 
and Budget. 
‘‘(2) TIER 0.—The term ‘tier 0’ has the mean-
ing given such term by the Director of the Office of 
Management and Budget with respect to the Spend 
Under Management tiered maturity model, or any 
successor model.’’. 
(b) APPLICATION.—Section 49 of the Small Business 
Act, as added by subsection (a), shall apply with respect 
to contracts entered into on or after the date of the enact-
ment of this Act. 
(c) PLAN AND REPORT.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the Di-
rector of the Office of Management and Budget 
shall submit to Congress a report including a plan 
to increase the participation of small business con-
cerns in agency-wide or Government-wide contracts 
(including best in class designations as defined in 
section 15(h)(4)(B)). Such plan shall include— 
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(A) strategies to increase the amount and 
frequency of opportunities for small business 
concerns to participate in agency-wide or Gov-
ernment-wide contracts; 
(B) strategies to ease or eliminate require-
ments that impede such participation of small 
business concerns; and 
(C) a specific goal for the number of small 
business concerns participating in agency-wide 
or Government-wide contracts and a timeline to 
achieve such goal. 
(2) IMPLEMENTATION.—Not later than 60 days 
after the submission of the report required under 
paragraph (1), the Director of the Office of Manage-
ment and Budget shall implement the plan con-
tained in such report. 
(d) RULEMAKING.—Not later than 90 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulation shall be revised to carry out this Act and the 
amendment made by this Act. 
SEC. 834. REPORT ON ACCELERATED PAYMENTS TO CER-
TAIN SMALL BUSINESS CONCERNS. 
(a) REPORT.—Not later than 3 months after the date 
of the enactment of this section, the head of each Federal 
agency shall submit to Congress a report on the timeliness 
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of payments made to a covered prime contractor. Such re-
port shall include— 
(1) the date on which the Federal agency began 
providing accelerated payments in accordance with 
section 2307(a)(2) of title 10, United States Code, 
or paragraphs (10) and (11) of section 3903(a) of 
title 31, United States Code, as applicable, to a cov-
ered prime contractor; 
(2) of contracts to which such sections apply, 
the amount and percentage of covered contracts with 
accelerated payment terms in accordance with such 
sections; and 
(3) whether and on what date the agency dis-
continued implementation of the Office of Manage-
ment and Budget Circular M–11–32 titled ‘‘Accel-
erating Payments to Small Businesses for Goods 
and Services’’ (issued September 14, 2011). 
(b) DEFINITIONS.—In this section: 
(1) COVERED PRIME CONTRACTOR.—The term 
‘‘covered prime contractor’’ means— 
(A) a prime contractor (as defined in sec-
tion 8701 of title 41) that is a small business 
concern (as defined in section 3 of the Small 
Business Act (15 U.S.C. 632)); and 
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(B) a prime contractor that subcontracts 
with a small business concern. 
(2) COVERED CONTRACT.—The term ‘‘covered 
contract’’ means a contract entered into by a cov-
ered prime contractor— 
(A) on or after August 13, 2018, with re-
spect to a contract entered into the head of an 
agency (as defined in section 2302 of title 10, 
United States Code); or 
(B) on or after December 20, 2019, with 
respect to a contract entered into with the head 
of an agency (as defined in section 3901 of title 
31, United States Code). 
(3) FEDERAL
AGENCY.—The term ‘‘Federal 
agency’’ has the meaning given ‘‘agency’’ in section 
551(a) of title 5, United States Code. 
SEC. 835. EXTENSION OF PARTICIPATION IN 8(a) PROGRAM. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration shall ensure that a small busi-
ness concern participating in the program established 
under section 8(a) of the Small Business Act (15 U.S.C. 
637) on or before March 13, 2020, may elect to extend 
such participation by a period of 1 year, regardless of 
whether such concern previously elected to suspend par-
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ticipation in such program pursuant to guidance of the 
Administrator. 
(b) EMERGENCY RULEMAKING AUTHORITY.—Not 
later than 15 days after the date of enactment of this sec-
tion, the Administrator shall issue regulations to carry out 
this section without regard to the notice requirements 
under section 553(b) of title 5, United States Code. 
SEC. 836. PAST PERFORMANCE RATINGS OF CERTAIN 
SMALL BUSINESS CONCERNS. 
(a) PAST PERFORMANCE RATINGS OF JOINT VEN-
TURES FOR SMALL BUSINESS CONCERNS.—Section 15(e) 
of the Small Business Act (15 U.S.C. 644(e)) is amended 
by adding at the end the following: 
‘‘(5) PAST PERFORMANCE RATINGS OF JOINT 
VENTURES FOR SMALL BUSINESS CONCERNS.—With 
respect to evaluating an offer for a prime contract 
made by a small business concern that previously 
participated in a joint venture with another business 
concern (whether or not such other business concern 
was itself a small business concern), the Adminis-
trator shall establish regulations— 
‘‘(A) requiring contracting officers to con-
sider the record of past performance of the 
joint venture when evaluating the past perform-
ance of the small business concern; and 
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‘‘(B) requiring the small business concern 
to inform the contracting officer what duties 
and responsibilities the small business concern 
carried out as part of the joint venture.’’. 
(b) PAST PERFORMANCE RATINGS OF FIRST-TIER 
SMALL BUSINESS SUBCONTRACTORS.—Section 8(d)(17) 
of the Small Business Act (15 U.S.C. 637(d)(17)) is 
amended to read as follows: 
‘‘(17) PAST PERFORMANCE RATINGS FOR CER-
TAIN SMALL BUSINESS SUBCONTRACTORS.— 
‘‘(A) IN
GENERAL.—Upon request by a 
small business concern that performed as a first 
tier subcontractor on a covered contract (as de-
fined in paragraph 13(A)) that is submitting an 
offer for a solicitation, the prime contractor for 
such covered contract shall submit to the con-
tracting agency issuing the solicitation or to 
such small business concern a record of past 
performance for such small business concern 
with respect to such covered contract. 
‘‘(B) CONSIDERATION.—A contracting offi-
cer shall consider the record of past perform-
ance of a small business concern provided under 
subparagraph (A) when evaluating an offer for 
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a prime contract made by such small business 
concern.’’. 
(c) RULEMAKING.— 
(1) SMALL
BUISNESS
ADMINISTRATION.—Not 
later than the end of the 120-day period beginning 
on the date of enactment of this Act, the Adminis-
trator of the Small Business Administration shall 
issue rules to carry out this section and the amend-
ments made by this section. 
(2) FEDERAL ACQUISITION REGULATION.—Not 
later than the end of the 120-day period beginning 
on the date that rules are issued under paragraph 
(1), the Federal Acquisition Regulation shall be re-
vised to reflect such rules. 
SEC. 837. CATEGORY MANAGEMENT TRAINING. 
(a) IN GENERAL.—Not later than 8 months after the 
date of the enactment of this section, the Administrator 
of the Small Business Administration, in coordination 
with the Administrator of the Office of Federal Procure-
ment Policy and any other head of a Federal agency as 
determined by the Administrator, shall develop a training 
curriculum on category management for staff of Federal 
agencies with procurement or acquisition responsibilities. 
Such training shall include— 
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(1) best practices for purchasing goods and 
services from small business concerns (as defined 
under section 3 of the Small Business Act (15 
U.S.C. 632)); and 
(2) information on avoiding conflicts with the 
requirements of the Small Business Act (15 U.S.C. 
631 et seq.). 
(b) USE OF CURRICULUM.—The Administrator of the 
Small Business Administration— 
(1) shall ensure that staff for Federal agencies 
described in subsection (a) receive the training de-
scribed in such subsection; and 
(2) may request the assistance of the relevant 
Director of Small and Disadvantaged Business Utili-
zation (as described in section 15(k) of the Small 
Business Act (15 U.S.C. 644(k))) to carry out the 
requirements of paragraph (1). 
(c) SUBMISSION TO CONGRESS.—The Administrator 
of the Small Business Administration shall provide a copy 
of the training curriculum developed under subsection (a) 
to the Committee on Small Business of the House of Rep-
resentatives and the Committee on Small Business and 
Entrepreneurship of the Senate. 
(d) CATEGORY MANAGEMENT DEFINED.—In this 
Act, the term ‘‘category management’’ has the meaning 
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given by the Director of the Office of Management and 
Budget. 
SEC. 838. SMALL BUSINESSES IN TERRITORIES OF THE 
UNITED STATES. 
(a) DEFINITION
OF COVERED TERRITORY BUSI-
NESS.—Section 3 of the Small Business Act (15 U.S.C. 
632) is amended by adding at the end the following new 
subsection: 
‘‘(ff) COVERED TERRITORY BUSINESS.—In this Act, 
the term ‘covered territory business’ means a small busi-
ness concern that has its principal office located in one 
of the following: 
‘‘(1) The United States Virgin Islands. 
‘‘(2) American Samoa. 
‘‘(3) Guam. 
‘‘(4) The Northern Mariana Islands.’’. 
(b) PRIORITY
FOR SURPLUS PROPERTY TRANS-
FERS.—Section 7(j)(13)(F)(iii) of the Small Business Act 
(15 U.S.C. 636(j)(13)(F)(iii)) is amended— 
(1) in clause (I), by striking ‘‘means’’ and all 
that follows through the period at the end and in-
serting the following: ‘‘means— 
‘‘(aa) in the case of a Puerto 
Rico business, the period begin-
ning on August 13, 2018, and 
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ending on the date on which the 
Oversight 
Board 
established 
under section 2121 of title 48 
terminates; and 
‘‘(bb) in the case of a cov-
ered territory business, the pe-
riod beginning on the date of en-
actment of this item and ending 
on the date that is 4 years after 
such date of enactment.’’; and 
(2) in clause (II)— 
(A) by inserting ‘‘or a covered territory 
business’’ after ‘‘a Puerto Rico business’’; and 
(B) by striking ‘‘the Puerto Rico business’’ 
in both places it appears and inserting ‘‘such 
business’’. 
(c) CONTRACTING INCENTIVES FOR PROTEGE FIRMS 
THAT ARE COVERED TERRITORY BUSINESSES.— 
(1) CONTRACTING INCENTIVES.—Section 45(a) 
of the Small Business Act (15 U.S.C. 657r(a)) is 
amended by adding at the end the following new 
paragraph: 
‘‘(4) COVERED TERRITORY BUSINESSES.—Dur-
ing the period beginning on the date of enactment 
of this paragraph and ending on the date that is 4 
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years after such date of enactment, the Adminis-
trator shall identify potential incentives to a covered 
territory mentor that awards a subcontract to its 
covered territory protege, including— 
‘‘(A) positive consideration in any past per-
formance evaluation of the covered territory 
mentor; and 
‘‘(B) the application of costs incurred for 
providing training to such covered territory pro-
tege to the subcontracting plan (as required 
under paragraph (4) or (5) of section 8(d)) of 
the covered territory mentor.’’. 
(2) MENTOR-PROTEGE
RELATIONSHIPS.—Sec-
tion 45(b)(3)(A) of the Small Business Act (15 
U.S.C. 657r(b)(3)(A)) is amended by striking ‘‘rela-
tionships are’’ and all that follows through the pe-
riod at the end and inserting the following: ‘‘rela-
tionships— 
‘‘(i) are between a covered protege 
and a covered mentor; or 
‘‘(ii) are between a covered territory 
protege and a covered territory mentor.’’. 
(3) DEFINITIONS.—Section 45(d) of the Small 
Business Act (15 U.S.C. 657r(d)) is amended by 
adding at the end the following new paragraphs: 
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‘‘(6) COVERED TERRITORY MENTOR.—The term 
‘covered territory mentor’ means a mentor that en-
ters into an agreement under this Act, or under any 
mentor-protege program approved under subsection 
(b)(1), with a covered territory protege. 
‘‘(7) COVERED
TERRITORY
PROTEGE.—The 
term ‘covered territory protege’ means a protege of 
a covered territory mentor that is a covered territory 
business.’’. 
SEC. 839. ELIGIBILITY OF THE COMMONWEALTH OF THE 
NORTHERN MARIANA ISLANDS FOR CERTAIN 
SMALL 
BUSINESS 
ADMINISTRATION 
PRO-
GRAMS. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) in section 21(a)— 
(A) in paragraph (1), by inserting before 
‘‘The Administration shall require’’ the fol-
lowing: ‘‘The previous sentence shall not apply 
to an applicant that has its principal office lo-
cated in the Commonwealth of the Northern 
Mariana Islands.’’; and 
(B) in paragraph (4)(C)(ix), by striking 
‘‘and American Samoa’’ and inserting ‘‘Amer-
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ican Samoa, and the Commonwealth of the 
Northern Mariana Islands’’; and 
(2) in section 34(a)(9), by striking ‘‘and Amer-
ican Samoa’’ and inserting ‘‘American Samoa, and 
the Commonwealth of the Northern Mariana Is-
lands’’. 
SEC. 840. BOOTS TO BUSINESS PROGRAM. 
Section 32 of the Small Business Act (15 U.S.C. 
657b) is amended by adding at the end the following new 
subsection: 
‘‘(h) BOOTS TO BUSINESS PROGRAM.— 
‘‘(1) COVERED INDIVIDUAL DEFINED.—In this 
subsection, the term ‘covered individual’ means— 
‘‘(A) a member of the Armed Forces, in-
cluding the National Guard or Reserves; 
‘‘(B) an individual who is participating in 
the Transition Assistance Program established 
under section 1144 of title 10, United States 
Code; 
‘‘(C) an individual who— 
‘‘(i) served on active duty in any 
branch of the Armed Forces, including the 
National Guard or Reserves; and 
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‘‘(ii) was discharged or released from 
such service under conditions other than 
dishonorable; and 
‘‘(D) a spouse or dependent of an indi-
vidual described in subparagraph (A), (B), or 
(C). 
‘‘(2) ESTABLISHMENT.—Beginning on the first 
October 1 after the enactment of this subsection and 
for the subsequent 4 fiscal years, the Administrator 
shall carry out a program to be known as the ‘Boots 
to Business Program’ to provide entrepreneurship 
training to covered individuals. 
‘‘(3) GOALS.—The goals of the Boots to Busi-
ness Program are to— 
‘‘(A) provide assistance and in-depth train-
ing to covered individuals interested in business 
ownership; and 
‘‘(B) provide covered individuals with the 
tools, skills, and knowledge necessary to identify 
a business opportunity, draft a business plan, 
identify sources of capital, connect with local 
resources for small business concerns, and start 
up a small business concern. 
‘‘(4) PROGRAM COMPONENTS.— 
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‘‘(A) IN GENERAL.—The Boots to Busi-
ness Program may include— 
‘‘(i) a presentation providing exposure 
to the considerations involved in self-em-
ployment and ownership of a small busi-
ness concern; 
‘‘(ii) an online, self-study course fo-
cused on the basic skills of entrepreneur-
ship, the language of business, and the 
considerations involved in self-employment 
and ownership of a small business concern; 
‘‘(iii) an in-person classroom instruc-
tion component providing an introduction 
to the foundations of self employment and 
ownership of a small business concern; and 
‘‘(iv) 
in-depth 
training 
delivered 
through online instruction, including an 
online course that leads to the creation of 
a business plan. 
‘‘(B) 
COLLABORATION.—The 
Adminis-
trator may— 
‘‘(i) collaborate with public and pri-
vate entities to develop course curricula for 
the Boots to Business Program; and 
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‘‘(ii) modify program components in 
coordination with entities participating in a 
Warriors in Transition program, as defined 
in section 738(e) of the National Defense 
Authorization Act for Fiscal Year 2013 
(10 U.S.C. 1071 note). 
‘‘(C) USE OF RESOURCE PARTNERS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall— 
‘‘(I) ensure that Veteran Busi-
ness Outreach Centers regularly par-
ticipate, on a nationwide basis, in the 
Boots to Business Program; and 
‘‘(II) to the maximum extent 
practicable, use a variety of other re-
source partners and entities in admin-
istering the Boots to Business Pro-
gram. 
‘‘(ii) GRANT AUTHORITY.—In carrying 
out clause (i), the Administrator may make 
grants to Veteran Business Outreach Cen-
ters, other resource partners, or other enti-
ties to carry out components of the Boots 
to Business Program. 
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‘‘(D) AVAILABILITY TO DEPARTMENT OF 
DEFENSE.—The 
Administrator 
shall 
make 
available to the Secretary of Defense informa-
tion regarding the Boots to Business Program, 
including all course materials and outreach ma-
terials related to the Boots to Business Pro-
gram, for inclusion on the website of the De-
partment of Defense relating to the Transition 
Assistance Program, in the Transition Assist-
ance Program manual, and in other relevant 
materials available for distribution from the 
Secretary of Defense. 
‘‘(E) AVAILABILITY
TO
VETERANS
AF-
FAIRS.—In consultation with the Secretary of 
Veterans Affairs, the Administrator shall make 
available for distribution and display at local fa-
cilities of the Department of Veterans Affairs 
outreach materials regarding the Boots to Busi-
ness Program which shall, at a minimum— 
‘‘(i) describe the Boots to Business 
Program and the services provided; and 
‘‘(ii) include eligibility requirements 
for participating in the Boots to Business 
Program. 
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‘‘(5) REPORT.—Not later than 180 days after 
the date of the enactment of this subsection and 
every year thereafter, the Administrator shall submit 
to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small 
Business of the House of Representatives a report 
on the performance and effectiveness of the Boots to 
Business Program, which may be included as part of 
another report submitted to such Committees by the 
Administrator, and which shall include— 
‘‘(A) information regarding grants award-
ed under paragraph (4)(C); 
‘‘(B) the total cost of the Boots to Busi-
ness Program; 
‘‘(C) the number of program participants 
using each component of the Boots to Business 
Program; 
‘‘(D) the completion rates for each compo-
nent of the Boots to Business Program; 
‘‘(E) to the extent possible— 
‘‘(i) the demographics of program par-
ticipants, to include gender, age, race, rela-
tionship to military, military occupational 
specialty, and years of service of program 
participants; 
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‘‘(ii) the number of small business 
concerns formed or expanded with assist-
ance under the Boots to Business Pro-
gram; 
‘‘(iii) the gross receipts of small busi-
ness concerns receiving assistance under 
the Boots to Business Program; 
‘‘(iv) the number of jobs created with 
assistance under the Boots to Business 
Program; 
‘‘(v) the number of referrals to other 
resources and programs of the Administra-
tion; 
‘‘(vi) the number of program partici-
pants receiving financial assistance under 
loan programs of the Administration; 
‘‘(vii) the type and dollar amount of 
financial assistance received by program 
participants under any loan program of the 
Administration; and 
‘‘(viii) results of participant satisfac-
tion surveys, including a summary of any 
comments received from program partici-
pants; 
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‘‘(F) an evaluation of the effectiveness of 
the Boots to Business Program in each region 
of the Administration during the most recent 
fiscal year; 
‘‘(G) an assessment of additional perform-
ance outcome measures for the Boots to Busi-
ness Program, as identified by the Adminis-
trator; 
‘‘(H) any recommendations of the Admin-
istrator for improvement of the Boots to Busi-
ness Program, which may include expansion of 
the types of individuals who are covered individ-
uals; 
‘‘(I) an explanation of how the Boots to 
Business Program has been integrated with 
other transition programs and related resources 
of the Administration and other Federal agen-
cies; and 
‘‘(J) any additional information the Ad-
ministrator determines necessary.’’. 
SEC. 840A. EMPLOYMENT SIZE STANDARD REQUIREMENTS. 
(a) IN GENERAL.—Section 3(a)(2) of the Small Busi-
ness Act (15 U.S.C. 632(a)(2)) is amended— 
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(1) in subparagraph (A), by inserting ‘‘and sub-
ject to the requirements specified under subpara-
graph (C)’’ after ‘‘paragraph (1)’’; and 
(2) in subparagraph (C)— 
(A) by inserting ‘‘(including the Adminis-
tration when acting pursuant to subparagraph 
(A))’’ after ‘‘no Federal department or agency’’; 
and 
(B) in clause (ii)(I) by striking ‘‘12 
months’’ and inserting ‘‘24 months’’. 
(b) EFFECTIVE DATE.—This Act and the amend-
ments made by this Act shall take effect 1 year after the 
date of the enactment of this Act. 
Subtitle E—Other Matters 
SEC. 841. MODIFICATIONS TO SUPERVISION AND AWARD OF 
CERTAIN CONTRACTS. 
(a) SUPERVISION
OF
MILITARY
CONSTRUCTION 
PROJECTS.—Section 2851 of title 10, United States Code, 
is amended— 
(1) in subsection (c)(1)— 
(A) by inserting ‘‘or appropriated’’ after 
‘‘funds authorized’’ each place such term ap-
pears; and 
(B) in subparagraph (E), by inserting ‘‘, 
Facilities Sustainment, Restoration, and Mod-
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ernization (FSRM) project,’’ after ‘‘military 
construction project’’; and 
(2) in subsection (c)(2)— 
(A) by inserting ‘‘, deadline for bid submis-
sions,’’ after ‘‘solicitation date’’; 
(B) by inserting ‘‘(including the address of 
such recipient)’’ after ‘‘contract recipient’’; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(H) Any subcontracting plan required under 
paragraph (4) or (5) of section 8(d) of the Small 
Business Act (15 U.S.C. 637(d)) for the project sub-
mitted by the contract recipient to the Secretary of 
Defense. 
‘‘(I) A detailed written statement describing 
and justifying any exception applied or waiver grant-
ed under— 
‘‘(i) chapter 83 of title 41; 
‘‘(ii) section 2533a of this title; or 
‘‘(iii) section 2533b of this title.’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) The information required to be published on the 
Internet website under subsection (c) shall constitute a 
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record for the purposes of Chapter 21, 29, 31, and 33 
of title 44.’’. 
(b) REQUIREMENTS RELATING TO THE AWARD OF 
COVERED MILITARY CONSTRUCTION CONTRACTS.— 
(1) REQUIREMENTS.—Subchapter III of chap-
ter 169 of title 10, United States Code, is amended 
by inserting after section 2851 the following new 
section: 
‘‘§ 2851a. Requirements relating to the award of cov-
ered military construction contracts 
‘‘(a) PUBLICATION OF CERTAIN INFORMATION RE-
LATING
TO COVERED MILITARY CONSTRUCTION CON-
TRACTS.— 
‘‘(1) CONTRACTOR
REQUIREMENTS.—A con-
tractor that has been awarded a covered military 
construction contract shall— 
‘‘(A) make publicly available on a website 
of the General Services Administration or the 
Small Business Administration, as applicable, 
any solicitation under that covered military con-
struction contract for a subcontract of an esti-
mated value of $250,000 or more; and 
‘‘(B) submit written notification of the 
award of the covered military construction con-
tract, and of any subcontract awarded under 
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the covered military construction contract, to 
the relevant agency of a covered State that en-
forces workers’ compensation or minimum wage 
laws in such covered State. 
‘‘(2) NOTICE.—Upon award of a covered mili-
tary construction contract with an estimated value 
greater than or equal to $2,000,000, the Secretary 
concerned shall notify any applicable Member of 
Congress representing the covered State in which 
that covered military construction contract is to be 
performed of such award in a timely manner. 
‘‘(3) FEDERAL PROCUREMENT DATA SYSTEM.— 
The Secretary of Defense shall ensure that there is 
a clear and unique indication of any covered military 
construction contract with subcontracting work of an 
estimated value of $250,000 or more in the Federal 
Procurement Data System established pursuant to 
section 1122(a)(4) of title 41 (or any successor sys-
tem). 
‘‘(b) USE OF LOCAL FIRMS AND INDIVIDUALS.— 
‘‘(1) IN GENERAL.—To the extent practicable, 
in awarding a covered military construction contract, 
the Secretary concerned shall give preference to 
those firms and individuals residing or doing busi-
ness primarily in the same State as, or within a 60- 
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mile radius of, the location of the work to be per-
formed pursuant to the contract. 
‘‘(2) JUSTIFICATION
REQUIRED.—The Sec-
retary concerned shall prepare a written justifica-
tion, and make such justification available on the 
Internet site required under section 2851 of this 
title, for the award of any covered military construc-
tion contract to a firm or individual that is not de-
scribed under paragraph (1). 
‘‘(c) LICENSING.—A contractor and any subcontrac-
tors performing a covered military construction contract 
shall be licensed to perform the work under such contract 
in the State in which the work will be performed. 
‘‘(d) MONTHLY REPORT.—Not later than 10 days 
after the end of each month, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port identifying for that month the following: 
‘‘(1) Each covered military construction con-
tract and each subcontract of a covered military con-
struction contract described in subsection (a)(1)(A) 
awarded during that month. 
‘‘(2) The location of the work to be performed 
pursuant to each covered military construction con-
tract and subcontract identified pursuant to para-
graph (1). 
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‘‘(3) The prime contractor and any subcon-
tractor performing each covered military construc-
tion contract and subcontract identified pursuant to 
paragraph (1). 
‘‘(4) The estimated value of each covered mili-
tary construction contract and subcontract identified 
pursuant to paragraph (1). 
‘‘(e) EXCLUSION OF CLASSIFIED PROJECTS.—This 
section does not apply to a classified covered military con-
struction project. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COVERED MILITARY CONSTRUCTION CON-
TRACT.—The term ‘covered military construction 
contract’ means a contract for work on a military 
construction project, military family housing project, 
or Facilities Sustainment, Restoration, and Mod-
ernization (FSRM) project carried out in a covered 
State. 
‘‘(2) COVERED
STATE.—The term ‘covered 
State’ means any of the several States, the District 
of Columbia, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the United States Virgin 
Islands, or the Commonwealth of the Northern Mar-
iana Islands. 
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‘‘(3) MEMBER OF CONGRESS.—The term ‘Mem-
ber of Congress’ has the meaning given the term in 
section 2106 of title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter III of chapter 
169 of title 10, United States Code, is amended by 
inserting after the item relating to section 2851 the 
following new item: 
‘‘2851a. Requirements relating to the award of covered military construction 
contracts.’’. 
(3) APPLICABILITY.—Section 2851a of title 10, 
United States Code, as added by paragraph (1), 
shall apply with respect to a covered military con-
struction contract, as defined in such section, en-
tered into on or after the date of the enactment of 
this Act. 
(c) SMALL BUSINESS CREDIT
FOR LOCAL BUSI-
NESSES.—Section 15 of the Small Business Act (15 
U.S.C. 644) is amended by adding at the end the following 
new subsection— 
‘‘(y) SMALL BUSINESS CREDIT FOR LOCAL BUSI-
NESSES.— 
‘‘(1) CREDIT FOR MEETING SUBCONTRACTING 
GOALS.—If a prime contractor awards a subcontract 
(at any tier) to a small business concern that has its 
principal office located in the same State as, or with-
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in a 60-mile radius of, the location of the work to 
be performed pursuant to the contract of the prime 
contractor, the value of the subcontract shall be dou-
bled for purposes of determining compliance with the 
goals for procurement contracts under subsection 
(g)(1)(A) during such period. 
‘‘(2) REPORT.—Along with the report required 
under subsection (h)(1), the head of each Federal 
agency shall submit to the Administrator, and make 
publicly available on the scorecard described in sec-
tion 868(b) of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 
Stat. 933; 15 U.S.C. 644 note), an analysis of the 
number and dollar amount of subcontracts awarded 
pursuant to paragraph (1) for each fiscal year of the 
period described in such paragraph.’’. 
SEC. 842. AMENDMENTS TO SUBMISSIONS TO CONGRESS 
RELATING TO CERTAIN FOREIGN MILITARY 
SALES. 
Section 887(b) of the National Defense Authorization 
Act for Fiscal Year 2018 (Public Law 115–91; 22 U.S.C. 
2761 note) is amended— 
(1) by striking ‘‘the Secretary shall’’ each place 
it appears and inserting ‘‘the Secretary, in consulta-
tion with the Secretary of State, shall’’; 
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(2) in paragraph (1)— 
(A) by striking ‘‘December 31, 2021’’ and 
inserting ‘‘December 31, 2024’’; and 
(B) by striking ‘‘with a value’’ and all that 
follows through the ‘‘subsection (a)’’; and 
(3) in paragraph (2), by striking ‘‘December 
31, 2021’’ and inserting ‘‘December 31, 2024’’. 
SEC. 843. REVISIONS TO REQUIREMENT TO USE FIRM 
FIXED-PRICE 
CONTRACTS 
FOR 
FOREIGN 
MILITARY SALES. 
(a) IN GENERAL.—Section 830 of the National De-
fense Authorization Act for Fiscal Year 2017 (22 U.S.C. 
2762 note) is amended— 
(1) in subsection (a), by inserting ‘‘and subject 
to subsection (e)’’ after ‘‘enactment of this Act’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(e) APPLICABILITY.—The regulations prescribed 
pursuant to subsection (a) shall not apply to a foreign 
military sale for which the foreign country that is the 
counterparty to such foreign military sale has requested 
a modification to the defense service or defense article that 
is the subject of such foreign military sale that would re-
quire significant development work.’’; and 
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(3) in subsection (c), by adding at the end the 
following new sentence: ‘‘The Secretary may not del-
egate the authority to exercise such a waiver below 
the level of the service acquisition executive (as de-
fined in section 101(a)(10) of title 10, United States 
Code).’’. 
(b) IMPLEMENTATION.—The Secretary of Defense 
shall— 
(1) not later than 120 days after the date of 
the enactment of this Act, issue guidance to carry 
out the amendments made by this section; and 
(2) not later than February 1, 2021, revise the 
Department of Defense Supplement to the Federal 
Acquisition Regulation to carry out the amendments 
made by this section. 
SEC. 844. SMALL BUSINESS INDUSTRIAL BASE RESILIENCY 
PROGRAM. 
(a) ESTABLISHMENT.—The Assistant Secretary of 
Defense for Industrial Base Policy (established under sec-
tion 902 of this Act) shall establish a program to be 
known as the ‘‘Small Business Industrial Base Resiliency 
Program’’ under which the Assistant Secretary shall enter 
into transactions to purchase or to make a commitment 
to purchase goods or services from small business concerns 
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as described in subsection (b) to respond to the COVID– 
19 pandemic. 
(b) USES OF TRANSACTIONS.—A transaction entered 
into pursuant to the authority under this section shall— 
(1) support the monitoring and assessment of 
small business concerns that enter into such a trans-
action; 
(2) address critical issues in the industrial base 
relating to urgent operational needs in response to 
the COVID–19 pandemic; 
(3) support efforts to create, maintain, protect, 
expand, or restore the industrial base in response to 
the COVID–19 pandemic; and 
(4) 
as 
applicable, 
address 
supply 
chain 
vulnerabilities related to the COVID–19 pandemic 
for small business concerns that enter into such a 
transaction. 
(c) DURATION.—The term of a transaction entered 
into pursuant to the authority under this section shall be 
2 years. 
(d) LIABILITIES.—With respect to any transaction 
entered into pursuant to the authority under this section 
on or after the date of enactment of this Act, if such trans-
action imposes any contingent liability upon the United 
States, such liability shall be recorded as an obligation 
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against amounts made available from the Research and 
Development, Defense-Wide, Pandemic Preparedness and 
Resilience National Security Fund under section 1003 in 
an amount equal to the maximum amount of the contin-
gency at the time such transaction is entered into. 
(e) REPORT.—Not later than March 1, 2021, the As-
sistant Secretary of Defense for Industrial Base Policy 
shall submit to the appropriate committees a report that 
includes the following: 
(1) A description of any guidance or policy 
issued to carry out this section. 
(2) A description of any relevant assessments 
prepared to address critical issues in the industrial 
base relating to urgent operational needs related to 
the COVID–19 pandemic. 
(3) A description of any transaction entered 
into pursuant to the authority under this section, 
and the impact such transaction has had on the re-
sponse of the Department of Defense to the 
COVID–19 pandemic. 
(4) A prioritized list of gaps or vulnerabilities 
in the transactions of the industrial base in which 
small business concerns participate that are related 
the COVID–19 pandemic, including— 
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(A) a description of mitigation strategies 
necessary 
to 
address 
such 
gaps 
or 
vulnerabilities; 
(B) the identification of the Secretary con-
cerned or the head of the Defense Agency re-
sponsible 
for 
addressing 
such 
gaps 
or 
vulnerabilities; and 
(C) a proposed timeline for action to ad-
dress such gaps or vulnerabilities. 
(5) Identification of each transaction designed 
to sustain specific essential technological and indus-
trial capabilities and processes of the industrial base 
in which small business concerns participate that are 
related to the COVID–19 pandemic. 
(6) Any other steps necessary to foster and 
safeguard the industrial base in which small busi-
ness concerns participate due to the impact of the 
COVID–19 pandemic. 
(f) FUNDING.—The Assistant Secretary of Defense 
for Industrial Base Policy shall use amounts authorized 
to be appropriated for Research and Development, De-
fense-Wide, Pandemic Preparedness and Resilience Na-
tional Security Fund under section 1003 to carry out the 
requirements of this section. 
(g) DEFINITIONS.—In this Act: 
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(1) APPROPRIATE
COMMITTEES.—The term 
‘‘covered committees’’ means— 
(A) the Committees on Armed Services of 
the Senate and the House of Representatives; 
and 
(B) the Committee on Small Business and 
Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Rep-
resentatives. 
(2) 
COVID–19 
PANDEMIC.—The 
term 
‘‘COVID–19 pandemic’’ means the national emer-
gency declared by the President under the National 
Emergencies Act (50 U.S.C. 1601 et seq.). 
(3) DEFENSE
AGENCY.—The term ‘‘Defense 
Agency’’ has the meaning given in section 101 of 
title 10, United States Code. 
(4) SECRETARY CONCERNED.—The term ‘‘Sec-
retary concerned’’ has the meaning given in section 
101 of title 10, United States Code. 
(5) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
under section 3 of the Small Business Act (15 
U.S.C. 632)). 
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SEC. 845. REQUIREMENTS RELATING TO REPORTS AND 
LIMITATIONS 
ON 
THE 
AVAILABILITY 
OF 
FUNDS. 
(a) LIMITATION ON THE AVAILABILITY OF FUNDS 
RELATING TO THE DEFENSE CIVILIAN TRAINING CORPS 
PROGRAM.— 
(1) INITIAL PLAN AND SCHEDULE.—Beginning 
on October 1, 2020, if the Secretary of Defense has 
not submitted the plan and schedule to implement 
the Defense Civilian Training Corps program re-
quired under section 860(b)(1) of the National De-
fense Authorization Act for Fiscal Year 2020 (Pub-
lic Law 116–92; 133 Stat. 1514; 10 U.S.C. 2200g 
note), not more than 25 percent of the funds speci-
fied in paragraph (3) may be obligated or expended 
until the date on which such plan and schedule has 
been submitted. 
(2) EXPANSION PLAN AND SCHEDULE.—Begin-
ning on January 1, 2021, if the Secretary of De-
fense has not submitted the expansion plan and 
schedule relating to the Defense Civilian Training 
Corps program required under section 860(b)(2) of 
the National Defense Authorization Act for Fiscal 
Year 2020 (Public Law 116–92; 133 Stat. 1514; 10 
U.S.C. 2200g note), not more than 50 percent of the 
funds specified in paragraph (3) may be obligated or 
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expended until the date on which such expansion 
plan and schedule has been submitted. 
(3) FUNDS SPECIFIED.—The funds specified in 
this paragraph are the funds authorized to be appro-
priated by this Act or otherwise made available for 
fiscal year 2021 for the Department of Defense for 
the following: 
(A) The immediate office of the Secretary 
of Defense. 
(B) The Office of the Under Secretary of 
Defense for Personnel and Readiness. 
(C) The Office of the Under Secretary of 
Defense for Research and Engineering. 
(D) The Office of the Under Secretary of 
Defense for Acquisition and Sustainment. 
(b) REPORT AND LIMITATION ON THE AVAILABILITY 
OF FUNDS RELATING TO THE EXTRAMURAL ACQUISITION 
INNOVATION AND RESEARCH ACTIVITIES.— 
(1) REPORT.—Not later than October 1, 2020, 
the Under Secretary of Defense for Acquisition and 
Sustainment shall submit to the congressional de-
fense committees a report— 
(A) on the establishment of the extramural 
acquisition innovation and research activities 
required under section 2361a of title 10, United 
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States Code (as added by section 835(a)(1) of 
the National Defense Authorization Act for Fis-
cal Year 2020 (Public Law 116–92; 133 Stat. 
1494)); and 
(B) that includes the name of the Director 
appointed under section 2361a(c) of such title 
(as added by section 835(a)(1) of the National 
Defense Authorization Act for Fiscal Year 2020 
(Public Law 116–92; 133 Stat. 1494)). 
(2) LIMITATION.— 
(A) IN GENERAL.—Beginning on October 
1, 2020, if the Under Secretary of Defense for 
Acquisition and Sustainment has not submitted 
the report required under paragraph (1), not 
more than 25 percent of the funds specified in 
subparagraph (B) may be obligated or expended 
until the date on which such report has been 
submitted. 
(B) FUNDS SPECIFIED.—The funds speci-
fied in this subparagraph are the funds author-
ized to be appropriated by this Act or otherwise 
made available for fiscal year 2021 for the De-
partment of Defense for the following: 
(i) The immediate office of the Sec-
retary of Defense. 
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(ii) The Office of the Under Secretary 
of Defense for Research and Engineering. 
(iii) The Office of the Under Sec-
retary of Defense for Acquisition and 
Sustainment. 
(c) REPORT AND LIMITATION ON THE AVAILABILITY 
OF FUNDS RELATING TO THE ELIMINATING THE GAPS 
AND VULNERABILITIES IN THE NATIONAL TECHNOLOGY 
AND INDUSTRIAL BASE.— 
(1) REPORT.—Not later than October 1, 2020, 
the Secretary of Defense shall submit to the con-
gressional defense committees the national security 
strategy for national technology and industrial base 
required by section 2501(a) of title 10, United 
States Code. 
(2) LIMITATION.— 
(A) IN GENERAL.—Beginning on October 
1, 2020, if the Secretary of Defense has not 
submitted the report required under paragraph 
(1), not more than 25 percent of the funds 
specified in subparagraph (B) may be obligated 
or expended until the date on which such report 
has been submitted. 
(B) FUNDS SPECIFIED.—The funds speci-
fied in this subparagraph are the funds author-
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ized to be appropriated by this Act or otherwise 
made available for fiscal year 2021 for the De-
partment of Defense for the following: 
(i) The immediate office of the Sec-
retary of Defense. 
(ii) The Office of the Under Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment. 
SEC. 846. ASSESSMENT OF THE REQUIREMENTS PROC-
ESSES OF THE MILITARY DEPARTMENTS. 
(a) ASSESSMENT.—The Secretary of the military de-
partment concerned shall assess the requirements process 
of the military department and make recommendations to 
improve the agility and timeliness of such requirements 
process for acquisition programs of the military depart-
ment. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than March 31, 
2021, each Secretary of a military department shall 
submit to the congressional defense committees a re-
port on the assessment conducted pursuant to sub-
section (a) and specific plans to update the require-
ments processes of the military department con-
cerned based on such assessment. 
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(2) ELEMENTS.—Each report shall include an 
analysis of and recommended improvements for the 
following elements: 
(A) If appropriate, information from the 
report required in section 800(f) of the Na-
tional Defense Authorization Act for Fiscal 
Year 2020 (Public Law 116–92). 
(B) The alignment of the requirements 
processes, acquisition system, and budget proc-
ess of the military department concerned. 
(C) The requirements process for each ac-
quisition pathway of the adaptive acquisition 
framework (as described in Department of De-
fense Instruction 5000.02, ‘‘Operation of the 
Adaptive Acquisition Framework’’), including 
the time it takes to complete requirements de-
velopment and approval process for each path-
way. 
(D) For each acquisition pathway de-
scribed in subparagraph (C), the processes for 
and the extent to which detailed systems engi-
neering and requirements trade-off analyses are 
done before the development of requirements 
begins for a specific acquisition program to en-
sure that risks are understood and accounted 
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for and that both top-level and derived require-
ments (development as well as reliability and 
maintainability) are achievable within cost, 
schedule, and technology constraints. 
(E) Organizational roles and responsibil-
ities of individuals with responsibilities relating 
to the requirements process for the military de-
partment concerned, including the role, com-
position, and metrics used to assess the effec-
tiveness of any requirements oversight council 
of the military department concerned. 
(F) The composition and sufficiency of in-
dividuals who develop requirements for the mili-
tary department concerned, including any ac-
quisition workforce planning and personnel 
shortfalls and resources needed to address any 
such shortfalls. 
(G) The ability of the requirements process 
to address the urgent needs of the military de-
partment concerned. 
(H) The capacity to review changes in re-
quirements for programs of record. 
(I) The validation of decisions made from 
the requirements process and the alignment of 
each such decision to the national defense strat-
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egy required under section 113(g) of title 10, 
United States Code. 
(J) The use of portfolio management in 
the requirements process to coordinate decisions 
and avoid any duplication of requirements 
across acquisition programs. 
(K) The implementation of recommenda-
tions on the process from the Comptroller Gen-
eral of the United States by each military de-
partment. 
(L) Identification and comparison of best 
practices in the private sector and the public 
sector for the requirements development and 
approval process. 
(M) Other recommendations to improve 
the process of establishing requirements, includ-
ing lessons learned from responding to the 
COVID–19 pandemic. 
(N) Any additional matters that the Secre-
taries determine appropriate. 
SEC. 847. REPORT ON TRANSFER AND CONSOLIDATION OF 
CERTAIN DEFENSE ACQUISITION STATUTES. 
Not later than February 21, 2021, the Secretary of 
Defense shall submit to the congressional defense commit-
tees a report containing a comprehensive legislative pro-
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posal for the transfer and consolidation of statutes within 
the framework for part V of subtitle A of title 10, United 
States Code (as enacted by section 801 of the National 
Defense Authorization Act for Fiscal Year 2019 (Public 
Law 115-232)), along with conforming amendments to law 
required by such transfer and consolidation. Such report 
shall include an assessment of the effect of such transfer 
and consolidation on related Department of Defense ac-
tivities, guidance, and interagency coordination. 
SEC. 848. PROHIBITION ON CONTRACTING WITH PERSONS 
WITH WILLFUL OR REPEATED VIOLATIONS 
OF THE FAIR LABOR STANDARDS ACT OF 
1938. 
The head of a Federal department or agency (as de-
fined in section 102 of title 40, United States Code) shall 
initiate a debarment proceeding with respect to a person 
for whom information regarding four or more willful or 
repeated violation of the Fair Labor Standards Act of 
1938 (29 U.S.C. 201 et seq.) as determined by a disposi-
tion described under subsection (c)(1) of section 2313 of 
title 41, United States Code, and issued in the last 4 
years, is included in the database established under sub-
section (a) of such section. The head of the department 
or agency shall use discretion in determining whether the 
debarment is temporary or permanent. 
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SEC. 849. REESTABLISHMENT OF COMMISSION ON WAR-
TIME CONTRACTING. 
(a) IN GENERAL.—There is hereby reestablished in 
the legislative branch under section 841 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110–181; 122 Stat. 230) the Commission on War-
time Contracting. 
(b) AMENDMENT TO DUTIES.—Section 841(c)(1) of 
the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 122 Stat. 231) is amended 
to read as follows: 
‘‘(1) GENERAL DUTIES.—The Commission shall 
study the following matters: 
‘‘(A) Federal agency contracting funded by 
overseas contingency operations funds. 
‘‘(B) Federal agency contracting for the 
logistical support of coalition forces operating 
under the authority of the 2001 or 2002 Au-
thorization for the Use of Military Force. 
‘‘(C) Federal agency contracting for the 
performance of security functions in countries 
where coalition forces operate under the author-
ity of the 2001 or 2002 Authorization for the 
Use of Military Force’’. 
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(c) CONFORMING AMENDMENTS.—Section 841 of the 
National Defense Authorization Act for Fiscal Year 2008 
(Public Law 110–181; 122 Stat. 230) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘the 
Committee on Oversight and Government Re-
form’’ each place it appears and inserting ‘‘the 
Committee on Oversight and Reform’’; 
(B) in paragraph (2), by striking ‘‘of this 
Act’’ and inserting ‘‘of the Wartime Con-
tracting Commission Reauthorization Act of 
2019’’; and 
(C) in paragraph (4), by striking ‘‘was 
first established’’ each place it appears and in-
serting ‘‘was reestablished by the Wartime Con-
tracting Commission Reauthorization Act of 
2019’’; and 
(2) in subsection (d)(1), by striking ‘‘On March 
1, 2009’’ and inserting ‘‘Not later than 1 year after 
the date of enactment of the Wartime Contracting 
Commission Reauthorization Act of 2019’’. 
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SEC. 850. REPORT ON CERTAIN CONTRACTS RELATING TO 
CONSTRUCTION OR MAINTENANCE OF A BOR-
DER WALL. 
The Secretary of Defense shall include on a public 
website of the Department of Defense a list of any con-
tracts, including any task order contract (as such term 
is defined in section 2304d of title 10, United States 
Code) and any modifications to a contract, entered into 
by the Secretary relating to the construction or mainte-
nance of a barrier along the international border between 
the United States and Mexico that have an estimated 
value equal to or greater than $7,000,000. 
SEC. 851. CONGRESSIONAL OVERSIGHT OF PRIVATE SECU-
RITY CONTRACTOR CONTRACTS. 
(a) REPORT OF CERTAIN CONTRACTS AND TASK OR-
DERS.— 
(1) REQUIREMENT
REGARDING
CONTRACTS 
AND TASK ORDERS.—The Inspector General of the 
Department of Defense shall compile a report of the 
work performed or to be performed under a covered 
contract during the period beginning on October 1, 
2001, and ending on the last day of the month dur-
ing which this Act is enacted for work performed or 
work to be performed in areas of contingency oper-
ations. 
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(2) FORM
OF
SUBMISSIONS.—The report re-
quired by paragraph (1) shall be submitted in un-
classified form, to the maximum extent possible, but 
may contain a classified annex, if necessary. 
(b) REPORTS ON CONTRACTS FOR WORK TO BE 
PERFORMED IN AREAS OF CONTINGENCY OPERATIONS 
AND OTHER SIGNIFICANT MILITARY OPERATIONS.—The 
Inspector General of the Department of Defense shall sub-
mit to each specified congressional committee a report not 
later than 60 days after the date of the enactment of this 
Act that contains the following information: 
(1) The number of civilians performing work in 
areas of contingency operations under covered con-
tracts. 
(2) The total cost of such covered contracts. 
(3) The total number of civilians who have been 
wounded or killed in performing work under such 
covered contracts. 
(4) A description of the disciplinary actions 
that have been taken against persons performing 
work under such covered contracts by the con-
tractor, the United States Government, or the gov-
ernment of any country in which the area of contin-
gency operations is located. 
(c) DEFINITIONS.—In this section: 
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(1) COVERED CONTRACT.—The term ‘‘covered 
contract’’ means a contract for private security en-
tered into by the Secretary of Defense in an amount 
greater than $5,000,000. 
(2) 
CONTINGENCY
OPERATION.—The 
term 
‘‘contingency operation’’ has the meaning provided 
by section 101(a)(13) of title 10, United States 
Code. 
(3) 
SPECIFIED
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘specified congressional commit-
tees’’ means the Committees on Armed Services of 
the Senate and the House of Representatives. 
SEC. 852. REVISIONS TO THE UNIFIED FACILITIES CRI-
TERIA REGARDING THE USE OF VARIABLE 
REFRIGERANT FLOW SYSTEMS. 
(a) IN GENERAL.—The Under Secretary of Defense 
for Acquisition and Sustainment shall publish any pro-
posed revisions to the Unified Facilities Criteria regarding 
the use of variable refrigerant flow systems in the Federal 
Register and shall specify a comment period of at least 
60 days. 
(b) NOTICE.—The Secretary shall submit to the 
Committees on Armed Services of the House of Represent-
atives and the Senate a written notice and justification 
for any proposed revisions to the Unified Facilities Cri-
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teria regarding the use of variable refrigerant flow systems 
not later than 30 days after the date of publication in the 
Federal Register. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. REPEAL OF POSITION OF CHIEF MANAGEMENT 
OFFICER. 
(a) REPEAL OF POSITION OF CHIEF MANAGEMENT 
OFFICER.— 
(1) IN
GENERAL.—Section 132a of title 10, 
United States Code is repealed. 
(2) 
CONFORMING
AMENDMENTS
AND
RE-
PEALS.— 
(A) Paragraph (2) of section 131(b) of 
title 10, United States Code, is repealed. 
(B) The table of sections at the beginning 
of chapter 4 of title 10, United States Code, is 
amended by striking the item relating to section 
132a. 
(C) Section 910 of the National Defense 
Authorization Act for Fiscal Year 2018 (Public 
Law 115–91; 131 Stat. 1516) is repealed. 
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(3) EFFECTIVE DATE.—The amendments and 
repeals made by paragraphs (1) and (2) shall take 
effect 30 days after the date of the enactment of 
this Act. 
(b) IMPLEMENTATION.—On the effective date of the 
amendments and repeals under subsection (a)— 
(1) any duties and responsibilities that remain 
assigned to the Chief Management Officer of the 
Department of Defense shall be transferred to a sin-
gle official selected by the Secretary of Defense, ex-
cept that such official may not be an individual who 
served as the Chief Management Officer before such 
effective date; 
(2) the personnel, functions, and assets of the 
Office of the Chief Management Officer shall be 
transferred to such other organizations and elements 
of the Department as the Secretary determines ap-
propriate; and 
(3) any reference in Federal law, regulations, 
guidance, instructions, or other documents of the 
Federal Government to the Chief Management Offi-
cer of the Department of Defense shall be deemed 
to be a reference to the official selected by the Sec-
retary under paragraph (1)). 
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(c) LEGISLATIVE PROPOSAL.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report that includes a comprehensive legisla-
tive proposal for additional conforming amendments to 
law required by the amendments and repeals made by this 
section. 
SEC. 902. ASSISTANT SECRETARY OF DEFENSE FOR INDUS-
TRIAL BASE POLICY. 
(a) IN GENERAL.— 
(1) ASSISTANT SECRETARIES OF DEFENSE.— 
Section 138 of title 10, United States Code, is 
amended— 
(A) in subsection (a)(1), by striking ‘‘13’’ 
and inserting ‘‘14’’; and 
(B) in subsection (b), by adding at the end 
the following new paragraph: 
‘‘(6) One of the Assistant Secretaries is the As-
sistant Secretary of Defense for Industrial Base Pol-
icy. In addition to any duties and powers prescribed 
under paragraph (1), the Assistant Secretary of De-
fense for Industrial Base Policy shall have the duties 
described in section 139c of this title.’’. 
(2) ASSISTANT SECRETARY OF DEFENSE FOR 
INDUSTRIAL BASE POLICY.—Chapter 4 of subtitle A 
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of title 10, United States Code, is amended by in-
serting after section 139b the following new section: 
‘‘§ 139c. Assistant Secretary of Defense for Industrial 
Base Policy 
‘‘(a) IN GENERAL.—The Assistant Secretary of De-
fense for Industrial Base Policy shall report to the Under 
Secretary of Defense for Acquisition and Sustainment. 
‘‘(b) RESPONSIBILITIES.—The Assistant Secretary of 
Defense for Industrial Base Policy shall be the head of 
the Office of Defense Industrial Base Policy and shall 
serve as the principal advisor to the Under Secretary of 
Defense for Acquisition and Sustainment in the perform-
ance of the Under Secretary’s duties relating to the fol-
lowing: 
‘‘(1) Providing input to strategy reviews on 
matters related to— 
‘‘(A) the defense industrial base; and 
‘‘(B) materials critical to national security 
(as defined in section 187(e)(1) of this title). 
‘‘(2) Establishing policies of the Department of 
Defense for developing and maintaining the defense 
industrial base of the United States and ensuring a 
secure supply of materials critical to national secu-
rity. 
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ensure a secure supply of such materials to the De-
partment of Defense. 
‘‘(10) Carrying out the activities of the Depart-
ment of Defense relating to the Defense Production 
Act Committee established under section 722 of the 
Defense Production Act of 1950 (50 U.S.C. App. 
2171). 
‘‘(11) Consistent with section 2(b) of the De-
fense Production Act of 1950 (50 U.S.C. App. 
2062(b)), executing other applicable authorities pro-
vided under the Defense Production Act of 1950 (50 
U.S.C. App. 2061 et seq.), including authorities 
under titles I and III of such Act. 
‘‘(12) Establishing Department of Defense poli-
cies related to international defense technology secu-
rity and export control issues. 
‘‘(13) Establishing policies related to industrial 
independent research and development programs 
under section 2372 of this title. 
‘‘(14) Coordinating with the Director of Small 
Business Programs on all matters related to indus-
trial base policy of the Department of Defense. 
‘‘(15) Ensuring reliable sources of materials 
critical to national security, such as specialty metals, 
armor plate, and rare earth elements. 
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‘‘(16) Establishing policies of the Department 
of Defense for continued reliable resource availability 
from secure sources for the defense industrial base 
of the United States. 
‘‘(17) Establishing policies related to a procure-
ment technical assistance program funded under this 
chapter 142 of this title. 
‘‘(18) Such other duties as are assigned by the 
Under Secretary. 
‘‘(c) RULES OF CONSTRUCTION RELATING TO DE-
FENSE PRODUCTION ACT.—Nothing in this section shall 
be construed to modify the authorities or responsibilities 
of any officer or employee of the United States under the 
Defense Production Act of 1950 (50 U.S.C. 4501 et seq.), 
including those authorities and responsibilities specified in 
Department of Defense Directive 4400.01E (or any suc-
cessor directive). In addition, nothing in subsection (b)(9) 
shall be construed to limit the authority or modify the poli-
cies of the Committee on Foreign Investment in the 
United States established under section 721(k) of such 
Act (50 U.S.C. 4565(k)).’’. 
(3) CLERICAL AMENDMENT.—The table of con-
tents for chapter 4 of subtitle A of title 10, United 
States Code, is amended by inserting after the item 
relating to section 139b the following new item: 
‘‘139c. Assistant Secretary of Defense for Industrial Base Policy.’’. 
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(b) CONTINUATION OF SERVICE.—The Deputy As-
sistant Secretary of Defense for Industrial Policy shall be 
the individual serving as the Assistant Secretary of De-
fense for Industrial Base Policy (as established under sec-
tion 139c(a) of title 10, United States Code, as added by 
subsection (a)) until the President has appointed an indi-
vidual to serve as Assistant Secretary of Defense for In-
dustrial Base Policy pursuant to section 138 of title 10, 
United States Code. 
(c) TRANSFER OF OFFICE OF INDUSTRIAL POLICY 
TO OFFICE OF DEFENSE INDUSTRIAL BASE POLICY.— 
(1) TRANSFER OF FUNCTIONS.—Not later than 
180 days after the date of the enactment of this Act, 
all functions that, immediately before such date of 
enactment, were functions of the Office of Industrial 
Policy of the Department of Defense shall be trans-
ferred to the Office of Defense Industrial Base Pol-
icy. 
(2) TRANSFER OF ASSETS.—So much of the 
personnel, property, records, and unexpended bal-
ances of appropriations, allocations, and other funds 
employed, used, held, available, or to be made avail-
able in connection with a function transferred under 
paragraph (1) shall be available to the Office of De-
fense Industrial Base Policy at such time or times 
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as the President directs for use in connection with 
the functions transferred. 
(3) TERMINATION.—The Office of Industrial 
Policy of the Department of Defense shall terminate 
on the earlier of— 
(A) the effective date of the transfers 
under paragraph (1); or 
(B) 180 days after the date of the enact-
ment of this Act. 
SEC. 903. ASSIGNMENT OF RESPONSIBILITY FOR THE ARC-
TIC REGION WITHIN THE OFFICE OF THE 
SECRETARY OF DEFENSE. 
The Assistant Secretary of Defense for International 
Security Affairs shall assign responsibility for the Arctic 
region to the Deputy Assistant Secretary of Defense for 
the Western Hemisphere or any other Deputy Assistant 
Secretary of Defense the Secretary of Defense considers 
appropriate. 
Subtitle B—Other Department of 
Defense Organization and Man-
agement Matters 
SEC. 911. LIMITATION ON REDUCTION OF CIVILIAN WORK-
FORCE. 
Section 129a(b) of title 10, United States Code, is 
amended by adding at the end the following: ‘‘The Sec-
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retary may not reduce the civilian workforce programmed 
full-time equivalent levels unless the Secretary conducts 
an appropriate analysis of the impacts of such reductions 
on workload, military force structure, lethality, readiness, 
operational effectiveness, stress on the military force, and 
fully burdened costs.’’. 
SEC. 912. CHIEF DIVERSITY OFFICERS. 
(a) DEPARTMENT OF DEFENSE.— 
(1) IN GENERAL.—Chapter 4 of title 10, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘§ 146. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a 
Chief Diversity Officer of the Department of Defense, ap-
pointed from civilian life by the President, by and with 
the advice and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management 
or business background and experience with diversity and 
inclusion. A person may not be appointed as Chief Diver-
sity Officer within seven years after relief from active duty 
as a commissioned officer of a regular component of an 
armed force. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Of-
ficer— 
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‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of Defenserelated to diversity and inclusion; 
‘‘(2) exercises authority to direct the Secre-
taries of the military departments and the heads of 
all other elements of the Department with regard to 
matters for which the Chief Diversity Officer has re-
sponsibility under this section; 
‘‘(3) exercises authority, direction, and control 
over the Office of People Analytics, or any successor 
organization; 
‘‘(4) shall establish and maintain a Department 
of Defense strategic plan that publicly states a di-
versity definition, vision, and goals for the Depart-
ment of Defense; 
‘‘(5) shall define a set of strategic metrics that 
are directly linked to key organizational priorities 
and goals, actionable, and actively used to imple-
ment the strategic plan; 
‘‘(6) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(7) shall establish and maintain a strategic 
plan for diverse participation by institutions of high-
er education (including historically black colleges 
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and universities and minority-serving institutions), 
federally funded research and development centers, 
and individuals in defense-related research, develop-
ment, testing, and evaluation activities; 
‘‘(8) shall establish and maintain a strategic 
plan for outreach to, and recruiting from, untapped 
locations and underrepresented demographic groups; 
‘‘(9) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department 
of Defense; and 
‘‘(10) shall perform such additional duties and 
exercise such powers as the Secretary of Defense 
may prescribe. 
‘‘(c) PRECEDENCE IN THE DEPARTMENT OF DE-
FENSE.—(1) The Chief Diversity Officer shall report di-
rectly to the Secretary of Defense in the performance of 
duties under this section. 
‘‘(2) The Chief Diversity Officer takes precedence in 
the Department of Defense after the Chief Management 
Officer.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning 
of such chapter is amended by adding at the 
end the following new item: 
‘‘146. Chief Diversity Officer.’’. 
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(B) Section 136(b) of such title is amend-
ed by inserting ‘‘the Chief Diversity Officer 
and’’ after ‘‘control of the Secretary of De-
fense,’’. 
(b) DEPARTMENT OF THE ARMY.— 
(1) IN
GENERAL.—Chapter 703 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 7025. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a 
Chief Diversity Officer of the Department of the Army, 
appointed from civilian life by the President, by and with 
the advice and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management 
or business background and experience with diversity and 
inclusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Of-
ficer— 
‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of the Army related to diversity and inclusion; 
‘‘(2) exercises authority to direct the heads of 
all other elements of the Department with regard to 
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matters for which the Chief Diversity Officer has re-
sponsibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department 
of the Army; and 
‘‘(5) shall perform such additional duties and 
exercise such powers as the Secretary of the Army 
may prescribe.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning 
of such chapter is amended by adding at the 
end the following new item: 
‘‘7025. Chief Diversity Officer.’’. 
(B) Section 7014(b) of such title is amend-
ed by— 
(i) by redesignating paragraphs (2) 
through (8) as paragraphs (3) through (9), 
respectively; and 
(ii) by inserting after paragraph (1), 
the following new paragraph (2): 
‘‘(2) The Chief Diversity Officer.’’. 
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(C) Section 7014(c)(1) of such title is 
amended by adding at the end the following 
new subparagraph (H): 
‘‘(H) Diversity and inclusion.’’. 
(c) DEPARTMENT OF THE NAVY.— 
(1) IN
GENERAL.—Chapter 803 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 8029. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a 
Chief Diversity Officer of the Department of the Navy, 
appointed from civilian life by the President, by and with 
the advice and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management 
or business background and experience with diversity and 
inclusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Of-
ficer— 
‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of the Navy related to diversity and inclusion; 
‘‘(2) exercises authority to direct the heads of 
all other elements of the Department with regard to 
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matters for which the Chief Diversity Officer has re-
sponsibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department 
of the Navy; and 
‘‘(5) shall perform such additional duties and 
exercise such powers as the Secretary of the Navy 
may prescribe.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning 
of chapter 803 of title 10, United States Code, 
is amended by adding at the end the following 
new item: 
‘‘8029. Chief Diversity Officer.’’. 
(B) Section 8014(b) of such title is amend-
ed by— 
(i) by redesignating paragraphs (2) 
through (8) as paragraphs (3) through (9), 
respectively; and 
(ii) by inserting after paragraph (1), 
the following new paragraph (2): 
‘‘(2) The Chief Diversity Officer.’’. 
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(C) Section 8014(c)(1) of such title is 
amended by adding at the end the following 
new subparagraph (H): 
‘‘(H) Diversity and inclusion.’’. 
(d) DEPARTMENT OF THE AIR FORCE.— 
(1) IN
GENERAL.—Chapter 903 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 9025. Chief Diversity Officer 
‘‘(a) CHIEF DIVERSITY OFFICER.—(1) There is a 
Chief Diversity Officer of the Department of the Air 
Force, appointed from civilian life by the President, by 
and with the advice and consent of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management 
or business background and experience with diversity and 
inclusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Of-
ficer— 
‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Depart-
ment of the Air Force related to diversity and inclu-
sion; 
‘‘(2) exercises authority to direct the heads of 
all other elements of the Department with regard to 
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matters for which the Chief Diversity Officer has re-
sponsibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Department 
of the Air Force; and 
‘‘(5) shall perform such additional duties and 
exercise such powers as the Secretary of the Air 
Force may prescribe.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) The table of sections at the beginning 
of such chapter is amended by adding at the 
end the following new item: 
‘‘9025. Chief Diversity Officer.’’. 
(B) Section 9014(b) of such title is amend-
ed by— 
(i) by redesignating paragraphs (2) 
through (8) as paragraphs (3) through (9), 
respectively; and 
(ii) by inserting after paragraph (1), 
the following new paragraph (2): 
‘‘(2) The Chief Diversity Officer.’’. 
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(C) Section 9014(c)(1) of such title is 
amended by adding at the end the following 
new subparagraph (H): 
‘‘(H) Diversity and inclusion.’’. 
(e) COAST GUARD.— 
(1) IN GENERAL.—Chapter 3 of title 14, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘§ 321. Chief Diversity Officer 
‘‘(a) ESTABLISHMENT.—(1) There is a Chief Diver-
sity Officer of the Coast Guard, appointed from civilian 
life by the President, by and with the advice and consent 
of the Senate. 
‘‘(2) The Chief Diversity Officer shall be appointed 
from among persons who have an extensive management 
or business background and experience with diversity and 
inclusion. 
‘‘(b) POWERS AND DUTIES.—The Chief Diversity Of-
ficer— 
‘‘(1) is responsible for policy, oversight, guid-
ance, and coordination for all matters of the Coast 
Guard related to diversity and inclusion; 
‘‘(2) exercises authority to direct the heads of 
all other elements of the Coast Guard with regard 
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to matters for which the Chief Diversity Officer has 
responsibility under this section; 
‘‘(3) shall establish training in diversity dynam-
ics and training in practices for leading diverse 
groups effectively; 
‘‘(4) shall conduct regular, rigorous evaluations 
and assessments of diversity within the Coast 
Guard; and 
‘‘(5) shall perform such additional duties and 
exercise such powers as the Commandant may pre-
scribe. 
‘‘(c) PRECEDENCE.—The Chief Diversity Officer 
shall report directly to the Commandant in the perform-
ance of duties under this section.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—The table of sections at the beginning of 
such chapter is amended by adding at the end the 
following new item: 
‘‘321. Chief Diversity Officer.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on February 1, 2021. 
SEC. 913. ESTABLISHMENT OF DEPUTY ASSISTANT SECRE-
TARIES FOR SUSTAINMENT. 
(a) DEPARTMENT OF THE ARMY.— 
(1) IN
GENERAL.—Chapter 703 of title 10, 
United States Code, as amended by section 912(b) 
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of this Act, is further amended by adding at the end 
the following new section: 
‘‘§ 7026. Deputy Assistant Secretary of the Army for 
Sustainment 
‘‘(a) APPOINTMENT.—There is a Deputy Assistant 
Secretary of the Army for Sustainment, who shall be ap-
pointed by the Secretary of the Army. 
‘‘(b) RESPONSIBILITIES.—The Deputy Assistant Sec-
retary of the Army for Sustainment shall have the fol-
lowing responsibilities with respect to major weapon sys-
tems acquired for the Department of the Army: 
‘‘(1) Reviewing and providing oversight of the 
sustainment baseline cost estimates required by sec-
tion 2366d of this title. 
‘‘(2) Participating in any review of a life-cycle 
sustainment plan conducted pursuant to section 
2366d of this title. 
‘‘(3) Ensuring that cost modeling, performance 
metrics, and data analytics are used— 
‘‘(A) to inform and update life-cycle 
sustainment plans; 
‘‘(B) to develop, with respect to the major 
weapon system to which such plan relates, the 
budget of the President for the fiscal year as 
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submitted to Congress pursuant to section 1105 
of title 31; and 
‘‘(C) to inform the Secretary of the Army 
when assumptions made in the development of 
a sustainment baseline cost estimate are no 
longer valid or when new opportunities arise to 
reduce costs or improve efficiency. 
‘‘(4) Making recommendations to the senior ac-
quisition executive of the Army regarding the most 
cost-effective sustainment strategy to incorporate 
into each life-cycle sustainment plan. 
‘‘(5) Balancing the range of sustainment activi-
ties for each major weapon system to achieve the op-
timal balance of affordability, viable military depots 
and shipyards, and contracted product support ar-
rangements. 
‘‘(6) Advise the Secretary of the Army regard-
ing the overall alignment of the sustainment activi-
ties, the operations of the sustainment supply chain, 
and strategic readiness. 
‘‘(c) 
DEFINITIONS.—The 
terms 
‘life-cycle 
sustainment plan’, ‘major weapon system’ , and 
‘sustainment baseline cost estimate’ have the meanings 
given in section 2366d of this title.’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 703 of title 10, 
United States Code, is amended by adding at the 
end the following new item: 
‘‘7026. Deputy Assistant Secretary of the Army for Sustainment.’’. 
(b) DEPARTMENT OF THE NAVY.— 
(1) IN
GENERAL.—Chapter 803 of title 10, 
United States Code, as amended by section 912(c) 
of this Act, is further amended by adding at the end 
the following new section: 
‘‘§ 8029a. Deputy Assistant Secretary of the Navy for 
Sustainment 
‘‘(a) APPOINTMENT.—There is a Deputy Assistant 
Secretary of the Navy for Sustainment, who shall be ap-
pointed by the Secretary of the Navy. 
‘‘(b) RESPONSIBILITIES.—The Deputy Assistant Sec-
retary of the Navy for Sustainment shall have the fol-
lowing responsibilities with respect to major weapon sys-
tems acquired for the Department of the Navy: 
‘‘(1) Reviewing and providing oversight of the 
sustainment baseline cost estimates required by sec-
tion 2366d of this title. 
‘‘(2) Participating in any review of a life-cycle 
sustainment plan conducted pursuant to section 
2366d of this title. 
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‘‘(3) Ensuring that cost modeling, performance 
metrics, and data analytics are used— 
‘‘(A) to inform and update life-cycle 
sustainment plans; 
‘‘(B) to develop, with respect to the major 
weapon system to which such plan relates, the 
budget of the President for the fiscal year as 
submitted to Congress pursuant to section 1105 
of title 31; and 
‘‘(C) to inform the Secretary of the Navy 
when assumptions made in the development of 
a sustainment baseline cost estimate are no 
longer valid or when new opportunities arise to 
reduce costs or improve efficiency. 
‘‘(4) Making recommendations to the senior ac-
quisition executive of the Navy regarding the most 
cost-effective sustainment strategy to incorporate 
into each life-cycle sustainment plan. 
‘‘(5) Balancing the range of sustainment activi-
ties for each major weapon system to achieve the op-
timal balance of affordability, viable military depots 
and shipyards, and contracted product support ar-
rangements. 
‘‘(6) Advise the Secretary of the Navy regard-
ing the overall alignment of the sustainment activi-
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ties, the operations of the sustainment supply chain, 
and strategic readiness. 
‘‘(c) 
DEFINITIONS.—The 
terms 
‘life-cycle 
sustainment plan’, ‘major weapon system’ , and 
‘sustainment baseline cost estimate’ have the meanings 
given in section 2366d of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 803 of title 10, 
United States Code, is amended by adding at the 
end the following new item: 
‘‘8029a. Deputy Assistant Secretary of the Navy for Sustainment.’’. 
(c) DEPARTMENT OF THE AIR FORCE.— 
(1) IN
GENERAL.—Chapter 903 of title 10, 
United States Code, as amended by section 912(d) 
of this Act, is further amended by adding at the end 
the following new section: 
‘‘§ 9026. Deputy Assistant Secretary of the Air Force 
for Sustainment 
‘‘(a) APPOINTMENT.—There is a Deputy Assistant 
Secretary of the Air Force for Sustainment, who shall be 
appointed by the Secretary of the Air Force. 
‘‘(b) RESPONSIBILITIES.—The Deputy Assistant Sec-
retary of the Air Force for Sustainment shall have the 
following responsibilities with respect to major weapon 
systems acquired for the Department of the Air Force: 
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‘‘(1) Reviewing and providing oversight of the 
sustainment baseline cost estimates required by sec-
tion 2366d of this title. 
‘‘(2) Participating in any review of a life-cycle 
sustainment plan conducted pursuant to section 
2366d of this title. 
‘‘(3) Ensuring that cost modeling, performance 
metrics, and data analytics are used— 
‘‘(A) to inform and update life-cycle 
sustainment plans; 
‘‘(B) to develop, with respect to the major 
weapon system to which such plan relates, the 
budget of the President for the fiscal year as 
submitted to Congress pursuant to section 1105 
of title 31; and 
‘‘(C) to inform the Secretary of the Air 
Force when assumptions made in the develop-
ment of a sustainment baseline cost estimate 
are no longer valid or when new opportunities 
arise to reduce costs or improve efficiency. 
‘‘(4) Making recommendations to the senior ac-
quisition executive of the Air Force regarding the 
most cost-effective sustainment strategy to incor-
porate into each life-cycle sustainment plan. 
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‘‘(5) Balancing the range of sustainment activi-
ties for each major weapon system to achieve the op-
timal balance of affordability, viable military depots 
and shipyards, and contracted product support ar-
rangements. 
‘‘(6) Advise the Secretary of the Air Force re-
garding the overall alignment of the sustainment ac-
tivities, the operations of the sustainment supply 
chain, and strategic readiness. 
‘‘(c) 
DEFINITIONS.—The 
terms 
‘life-cycle 
sustainment 
plan’, 
‘major 
weapon 
system’, 
and 
‘sustainment baseline cost estimate’ have the meanings 
given in section 2366d of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 903 of title 10, 
United States Code, is amended by adding at the 
end the following new item: 
‘‘9026. Deputy Assistant Secretary of the Air Force for Sustainment.’’. 
SEC. 914. OFFICE OF DEFENSE COMMUNITY COOPERATION 
AND ECONOMIC ADJUSTMENT. 
(a) ESTABLISHMENT.— 
(1) IN
GENERAL.—Chapter 141 of title 10, 
United States Code, is amended by inserting after 
section 2391 the following new section: 
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‘‘§ 2391a. Office of Defense Community Cooperation 
and Economic Adjustment 
‘‘(a) ESTABLISHMENT.—There is in the Office of the 
Secretary of Defense an Office of Defense Community Co-
operation and Economic Adjustment (in this section re-
ferred to as the ‘Office’). 
‘‘(b) HEAD OF OFFICE.—There is a Director of the 
Office who shall be the head of the Office. The Director 
shall be appointed by the Secretary of Defense. 
‘‘(c) DUTIES.—The Office shall— 
‘‘(1) serve as the office in the Department of 
Defense with primary responsibility for— 
‘‘(A) providing assistance to States, coun-
ties, municipalities, regions, and other commu-
nities to foster cooperation with military instal-
lations to enhance the military mission, achieve 
facility and infrastructure savings and reduced 
operating costs, address encroachment and 
compatible land use issues, support military 
families, and increase military, civilian, and in-
dustrial readiness and resiliency; and 
‘‘(B) providing adjustment and diversifica-
tion assistance to State and local governments 
under section 2391(b) to achieve the objectives 
described in subparagraph (A); 
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‘‘(2) coordinate the provision of such assistance 
with other organizations and elements of the De-
partment; 
‘‘(3) provide support to the Economic Adjust-
ment Committee established under Executive Order 
No. 12788 (57 Fed. Reg. 2213; 10 U.S.C. 2391 
note) or any successor to such Committee; and 
‘‘(4) carry out such other activities as the Sec-
retary of Defense determines appropriate.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2391 
the following new item: 
‘‘2391a. Office of Defense Community Cooperation and Economic Adjustment.’’. 
(b) TRANSFERS.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall transfer the functions, personnel, and assets of the 
Office of Economic Adjustment of the Department of De-
fense to the Office of Defense Community Cooperation 
and Economic Adjustment established under section 
2391a of title 10, United States Code (as added by sub-
section (a)). 
(c) ADMINISTRATION OF CERTAIN PROGRAMS.—Be-
ginning on the effective date of the transfers under sub-
section (b), any program, project, or other activity admin-
istered by the Office of Economic Adjustment of the De-
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partment of Defense as of the date of the enactment of 
this Act shall be administered by the Office of Defense 
Community Cooperation and Economic Adjustment estab-
lished under section 2391a of title 10, United States Code 
(as added by subsection (a)). 
SEC. 915. INPUT FROM CHIEF OF NATIONAL GUARD BU-
REAU TO THE JOINT REQUIREMENTS OVER-
SIGHT COUNCIL. 
Section 181(d) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(4) INPUT FROM CHIEF OF NATIONAL GUARD 
BUREAU.—The Council shall seek, and strongly con-
sider, the views of the Chief of National Guard Bu-
reau regarding non-Federalized National Guard ca-
pabilities in support of homeland defense and civil 
support missions.’’. 
SEC. 916. REDESIGNATION OF THE JOINT FORCES STAFF 
COLLEGE. 
(a) IN GENERAL.—Title 10, United States Code, is 
amended by striking ‘‘Joint Forces Staff College’’ each 
place it appears and inserting ‘‘Joint Forces War Col-
lege’’. 
(b) REFERENCES.—Any reference in Federal law, 
regulations, guidance, instructions, or other documents of 
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the Federal Government to the Joint Forces Staff College 
shall be deemed to be a reference to the Joint Forces War 
College. 
SEC. 917. REPORTING ON POST-JAIC ASSIGNMENT. 
Subsection (b) of section 260 of the National Defense 
Authorization Act for Fiscal Year 2020 (Public Law 116– 
92) is amended by adding at the end the following para-
graph: 
‘‘(11) For each uniformed service member who 
concluded an assignment supporting the Center in 
the previous 6 months, a position description of the 
billet that the service member transitioned into.’’. 
SEC. 
918. 
COMPTROLLER 
GENERAL 
REPORT 
ON 
VULNERABILITIES OF THE DEPARTMENT OF 
DEFENSE 
RESULTING 
FROM 
OFFSHORE 
TECHNICAL SUPPORT CALL CENTERS. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to the 
Committees on Armed Services of the Senate and the 
House of Representatives a report on vulnerabilities in 
connection with the provision of services by offshore tech-
nical support call centers to the Department of Defense. 
(b) ELEMENTS.—The report required by subsection 
(a) shall include the following: 
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(1) A description and assessment of the location 
of all offshore technical support call centers. 
(2) A description and assessment of the types 
of information shared by the Department with for-
eign nationals at offshore technical support call cen-
ters. 
(3) An assessment of the extent to which access 
to such information by foreign nationals creates 
vulnerabilities to the information technology network 
of the Department. 
(c) OFFSHORE TECHNICAL SUPPORT CALL CENTER 
DEFINED.—In this section, the term ‘‘offshore technical 
support call center’’ means a call center that— 
(1) is physically located outside the United 
States; 
(2) employs individuals who are foreign nation-
als; and 
(3) may be contacted by personnel of the De-
partment to provide technical support relating to 
technology used by the Department. 
SEC. 919. LIMITATION ON CONSOLIDATION OR TRANSITION 
TO ALTERNATIVE CONTENT DELIVERY METH-
ODS WITHIN THE DEFENSE MEDIA ACTIVITY. 
(a) IN GENERAL.—No consolidation or transition to 
alternative content delivery methods may occur within the 
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Defense Media Activity until a period of 180 days has 
elapsed following the date on which the Secretary of De-
fense submits to the congressional defense committees a 
report that includes a certification, in detail, that such 
consolidation or transition to alternative content delivery 
methods will not— 
(1) compromise the safety and security of mem-
bers of the Armed Forces and their families; 
(2) compromise the cybersecurity or security of 
content delivery to members of the Armed Forces, 
whether through— 
(A) inherent vulnerabilities in the content 
delivery method concerned; 
(B) vulnerabilities in the personal devices 
used by members; or 
(C) vulnerabilities in the receivers or 
streaming devices necessary to accommodate 
the alternative content delivery method; 
(3) increase monetary costs or personal finan-
cial liabilities to members of the Armed Forces or 
their families, whether through monthly subscription 
fees or other tolls required to access digital content; 
and 
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(4) impede access to content due to bandwidth 
or other technical limitations where members of the 
Armed Forces receive content. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘alternative content delivery’’ 
means any method of the Defense Media Activity for 
the delivery of digital content that is different from 
a method used by the Activity as of the date of the 
enactment of this Act. 
(2) The term ‘‘consolidation’’, when used with 
respect to the Defense Media Activity, means any 
action to reduce or limit the functions, personnel, fa-
cilities, or capabilities of the Activity, including en-
tering into contracts or developing plans for such re-
duction or limitation. 
Subtitle C—Space Matters 
SEC. 921. ASSISTANT SECRETARY OF DEFENSE FOR SPACE 
AND STRATEGIC DETERRENCE POLICY. 
(a) ASSISTANT SECRETARIES OF DEFENSE.—Para-
graph (5) of section 138(b) of title 10, United States 
Code, is amended to read as follows: 
‘‘(5) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Space and Strategic Deterrence 
Policy. The principal duty of the Assistant Secretary shall 
be the overall supervision of policy of the Department of 
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Defense for space, nuclear deterrence, and missile de-
fense.’’. 
(b) SPACE FORCE ACQUISITION COUNCIL.—Section 
9021(b)(3) of title 10, United States Code, is amended 
by striking ‘‘Assistant Secretary of Defense for Space Pol-
icy’’ and inserting ‘‘Assistant Secretary of Defense for 
Space and Strategic Deterrence Policy’’. 
(c) ELEMENTS OF OFFICE.—Section 955(b) of the 
National Defense Authorization Act for Fiscal Year 2020 
(Public Law 116–92; 133 Stat. 1565) is amended by strik-
ing ‘‘Assistant Secretary of Defense for Space Policy’’ and 
inserting ‘‘Assistant Secretary of Defense for Space and 
Strategic Deterrence Policy’’. 
SEC. 922. OFFICE OF THE CHIEF OF SPACE OPERATIONS. 
(a) IN GENERAL.—Chapter 908 of title 10, United 
States Code, is amended by striking section 9083 and in-
serting the following new sections: 
‘‘§ 9083. Office of the Chief of Space Operations: func-
tion; composition 
‘‘(a) FUNCTION.—There is in the executive part of 
the Department of the Air Force an Office of the Chief 
of Space Operations to assist the Secretary of the Air 
Force in carrying out the responsibilities of the Secretary. 
‘‘(b) COMPOSITION.—The Office of the Chief of 
Space Operations is composed of the following: 
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‘‘(1) The Chief of Space Operations. 
‘‘(2) Other members of the Space Force and 
Air Force assigned or detailed to the Office of the 
Chief of Space Operations. 
‘‘(3) Civilian employees in the Department of 
the Air Force assigned or detailed to the Office of 
the Chief of Space Operations. 
‘‘(c) ORGANIZATION.—Except as otherwise specifi-
cally prescribed by law, the Office of the Chief of Space 
Operations shall be organized in such manner, and the 
members of the Office of the Chief of Space Operations 
shall perform such duties and have such titles, as the Sec-
retary of the Air Force may prescribe. 
‘‘§ 9084. Office of the Chief of Space Operations: gen-
eral duties 
‘‘(a) PROFESSIONAL ASSISTANCE.—The Office of the 
Chief of Space Operations shall furnish professional as-
sistance to the Secretary, the Under Secretary, and the 
Assistant Secretaries of the Air Force and to the Chief 
of Space Operations. 
‘‘(b) AUTHORITIES.—Under the authority, direction, 
and control of the Secretary of the Air Force, the Office 
of the Chief of Space Operations shall— 
‘‘(1) subject to subsections (c) and (d) of sec-
tion 9014 of this title, prepare for such employment 
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of the Space Force, and for such recruiting, orga-
nizing, supplying, equipping (including research and 
development), training, servicing, mobilizing, de-
mobilizing, administering, and maintaining of the 
Space Force, as will assist in the execution of any 
power, duty, or function of the Secretary of the Air 
Force or the Chief of Space Operations; 
‘‘(2) investigate and report upon the efficiency 
of the Space Force and its preparation to support 
military operations by commanders of the combatant 
commands; 
‘‘(3) prepare detailed instructions for the execu-
tion of approved plans and supervise the execution 
of those plans and instructions; 
‘‘(4) as directed by the Secretary of the Air 
Force or the Chief of Space Operations, coordinate 
the action of organizations of the Space Force; and 
‘‘(5) perform such other duties, not otherwise 
assigned by law, as may be prescribed by the Sec-
retary of the Air Force.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of chapter 908 of such title is 
amended by striking the item related to section 9083 and 
adding at the end the following new items: 
‘‘9083. Office of the Chief of Space Operations: function; composition 
‘‘9084. Office of the Chief of Space Operations: general duties’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date on which the Sec-
retary of the Air Force and the Chief of Space Operations 
jointly submit to the congressional defense committees a 
report detailing the functions that the headquarters staff 
of the Department of the Air Force will continue to per-
form in support of the Space Force. 
(d) NO AUTHORIZATION OF ADDITIONAL MILITARY 
BILLETS.—The Secretary shall establish the Office of the 
Chief of Space Operations under section 9083 of title 10, 
United States Code, as added by subsection (a), using 
military personnel otherwise authorized. Nothing in this 
section or the amendments made by this section shall be 
construed to authorize additional military billets for the 
purposes of, or in connection with, the establishment of 
the Office of the Chief of Space Operations. 
SEC. 923. SPACE FORCE MEDAL. 
(a) SPACE FORCE MEDAL.—Chapter 937 of title 10, 
United States Code, is amended by inserting after section 
9280 the following new section: 
‘‘§ 9280a. Space Force Medal: award; limitations 
‘‘(a) The President may award a decoration called the 
‘Space Force Medal’, of appropriate design with accom-
panying ribbon, to any person who, while serving in any 
capacity with the Space Force, distinguishes himself or 
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herself by heroism not involving actual conflict with an 
enemy. 
‘‘(b) Not more than one Space Force Medal may be 
awarded to a person. However, for each succeeding act 
that would otherwise justify award of such a medal, the 
President may award a suitable bar or other device to be 
worn as the President directs.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of such chapter is amended by 
inserting after the item relating to section 9280 the fol-
lowing new item: 
‘‘9280a. Space Force Medal: award; limitations.’’. 
SEC. 924. CLARIFICATION OF PROCUREMENT OF COMMER-
CIAL SATELLITE COMMUNICATIONS SERV-
ICES. 
(a) IN GENERAL.—Chapter 963 of title 10, United 
States Code, is amended by inserting before section 9532 
the following new section: 
‘‘§ 9531. Procurement of commercial satellite commu-
nications services 
‘‘The Chief of Space Operations shall be responsible 
for the procurement of commercial satellite communica-
tions services for the Department of Defense.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of chapter 963 of such title is 
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amended by inserting before the item relating to section 
9532 the following new item: 
‘‘9531. Procurement of commercial satellite communications services.’’. 
SEC. 925. TEMPORARY EXEMPTION FROM AUTHORIZED 
DAILY 
AVERAGE 
OF 
MEMBERS 
IN 
PAY 
GRADES E–8 AND E–9. 
Section 517 of title 10, United States Code, shall not 
apply to the Space Force until October 1, 2023. 
SEC. 926. ONE-TIME UNIFORM ALLOWANCE FOR MEMBERS 
TRANSFERRED TO THE SPACE FORCE. 
(a) IN GENERAL.—The Secretary of the Air Force 
may provide an officer or enlisted member who transfers 
from the Army, Navy, Air Force, or Marine Corps to the 
Space Force an allowance of not more than $400 as reim-
bursement for the purchase of required uniforms and 
equipment. 
(b) RELATIONSHIP TO OTHER ALLOWANCES.—The 
allowance under this section is in addition to any allow-
ance available under any other provision of law. 
(c) SOURCE OF FUNDS.—Funds for allowances pro-
vided under subsection (a) in a fiscal year may be derived 
only from amounts authorized to be appropriated for mili-
tary personnel for such fiscal year. 
(d) APPLICABILITY.—The authority for an allowance 
under this section shall apply with respect to any member 
of the Army, Navy, Air Force, or Marine Corps who trans-
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fers to the Space Force on or after December 20, 2019, 
and on or before September 30, 2023. 
SEC. 927. RANK AND GRADE STRUCTURE OF THE UNITED 
STATES SPACE FORCE. 
The Space Force shall use a system of ranks and 
grades that is identical to the system of ranks and grades 
used by the Navy. 
SEC. 928. REPORT ON THE ROLE OF THE NAVAL POST-
GRADUATE SCHOOL IN SPACE EDUCATION. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of the Navy shall submit to the congressional defense com-
mittees a report on the future role of the Naval Post-
graduate School in space education. 
(b) ELEMENTS.—The report under subsection (a) 
shall include the following: 
(1) An overview of the Naval Postgraduate 
School’s existing space-focused education and re-
search capabilities, programs, products, and outputs. 
(2) An identification and evaluation of addi-
tional space-focused educational requirements that 
may be fulfilled by the Naval Postgraduate school, 
including any requirements resulting from the estab-
lishment of the Space Force or otherwise neces-
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sitated by the evolving space-related needs of the 
Department of Defense. 
(3) A plan for meeting the requirements identi-
fied under paragraph (2), including a description of 
the types and amounts of additional resources that 
may be needed for the Naval Postgraduate School to 
meet such requirements over the period of 5 fiscal 
years following the date of the report. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2021 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
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the Secretary may transfer under the authority of 
this section may not exceed $4,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
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(e) CERTIFICATION REQUIREMENT.—The authority 
to transfer any authorization under this section may not 
be used until the Secretary of Defense and the head of 
each entity affected by such transfer submits to the con-
gressional defense committees certification in writing 
that— 
(1) the amount transferred will be used for 
higher priority items, based on unforeseen military 
requirements, than the items from which authority is 
transferred; and 
(2) the amount transferred will not be used for 
any item for which funds have been denied author-
ization by Congress. 
SEC. 1002. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
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SEC. 1003. PANDEMIC PREPAREDNESS AND RESILIENCE 
NATIONAL SECURITY FUND. 
(a) FUND PURPOSES.—Amounts authorized to be ap-
propriated for Research and Development, Defense-Wide, 
Pandemic Preparedness and Resilience National Security 
Fund shall be available for obligation and expenditure only 
for the purposes of pandemic preparedness. Such amounts 
may not be used for a purpose or program unless the pur-
pose or program is authorized by law. 
(b) TRANSFERS.— 
(1) IN GENERAL.—Amounts referred to in sub-
section (a) may be transferred as follows: 
(A) To Procurement, Defense-wide and 
Research, Development, Test, and Evaluation, 
Defense-wide, not more than an aggregate of 
$200,000,000 to carry out the Small Business 
Industrial Base Resilience Program established 
by section 844 of this Act. 
(B) To Research, Development, Test, and 
Evaluation, Defense-wide, line 9, Biomedical 
Technology, not more than $50,000,000 for re-
search that aims to rapidly produce medical 
countermeasures against novel threats, at popu-
lation scale and approved for use in people. 
(C) To the following, not more than an ag-
gregate of $750,000,000 to support research 
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and development efforts directly related to bio-
preparedness and pandemic preparedness and 
resilience: 
(i) Research, Development, Test, and 
Evaluation, Army. 
(ii) Research, Development, Test, and 
Evaluation, Navy. 
(iii) Research, Development, Test, and 
Evaluation, Air Force. 
(iv) Research, Development, Test, and 
Evaluation, Defense-wide. 
(v) Defense Health Program. 
(D) To Research, development, test, and 
evaluation, Defense-wide, Line 16, Chemical 
and Biological Defense Program, not more than 
$27,000,000 for research and development to 
detect and model treatments for nuclear, chem-
ical, and biological exposure. 
(E) To research, development, test, and 
evaluation, Defense-wide, line 44, Chemical and 
Biological Defense Program – Advanced Devel-
opment, not more than $30,000,000 for the de-
velopment of decontamination technologies for 
civilian pandemic preparedness. 
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(F) To research, development, test, and 
evaluation, Defense-wide, line 49, Manufac-
turing Science and Technology Program, not 
more than $35,000,000 for support for the de-
velopment of advanced manufacturing tech-
niques and technologies that enable the United 
States defense industrial base to rapidly 
produce needed materials for novel biological 
threats. 
(2) LIMITATION.—Amounts referred to in sub-
section (a) may not be transferred for— 
(A) Drug Interdiction and Counter-Drug 
Activities; or 
(B) military construction (as defined in 
section 2801(a) of title 10, United States 
Code), including the purposes described in sec-
tion 2802(b) of such title, or military family 
housing, including the purposes described in 
section 2821(a) of such title. 
(3) NOTICE REQUIREMENT.—Not later than 30 
days before transferring any amount described in 
subsection (a), the Secretary of Defense shall submit 
to the congressional defense committees notice of the 
transfer. 
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