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(4) The number of one-offer contracts awarded 
by the Department during the fiscal year covered by 
such report, and the percentage of such number to the 
total number of contracts awarded by the Department 
during such fiscal year. 
(5) An assessment of the extent to which such 
one-offer contracts were awarded in compliance with 
applicable Department guidance on one-offer con-
tracts. 
(6) An assessment whether the contracting prac-
tices of the Department during the fiscal year covered 
by such report were in keeping with the objective of 
promoting full and open competition in the award of 
contracts in excess of the simplified acquisition 
threshold. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘competitive procedures’’ has the 
meaning given that term in section 2302(2) of title 
10, United States Code. 
(2) The term ‘‘noncompetitive contract’’ means a 
contract awarded through other than competitive pro-
cedures. 
(3) The term ‘‘one-offer contract’’ means a con-
tract awarded after receiving a bid from only one 
qualified vendor.
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SEC. 848. DETECTION AND AVOIDANCE OF COUNTERFEIT 
ELECTRONIC PARTS. 
(a) REVISED REGULATIONS REQUIRED.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall revise the Department of Defense Sup-
plement to the Federal Acquisition Regulation to ad-
dress the detection and avoidance of counterfeit elec-
tronic parts. 
(2) CONTRACTOR
RESPONSIBILITIES.—The re-
vised regulations issued pursuant to paragraph (1) 
shall provide that— 
(A) contractors on Department of Defense 
contracts for products that include electronic 
parts are responsible for detecting and avoiding 
the use or inclusion of counterfeit electronic 
parts or suspect counterfeit electronic parts in 
such products and for any rework or corrective 
action that may be required to remedy the use or 
inclusion of such parts; and 
(B) the cost of counterfeit electronic parts 
and suspect counterfeit electronic parts and the 
cost of rework or corrective action that may be 
required to remedy the use or inclusion of such 
parts are not allowable costs under such con-
tracts.
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(3) TRUSTED SUPPLIERS.—The revised regula-
tions issued pursuant to paragraph (1) shall— 
(A) require that, whenever possible, the De-
partment of Defense and Department of Defense 
contractors and subcontractors— 
(i) obtain electronic parts that are in 
production or currently available in stock 
from the original manufacturers of the 
parts or their authorized dealers, or from 
trusted suppliers who obtain such parts ex-
clusively from the original manufacturers of 
the parts or their authorized dealers; and 
(ii) obtain electronic parts that are not 
in production or currently available in 
stock from trusted suppliers; 
(B) establish requirements for notification 
of the Department of Defense, inspection, test, 
and authentication of electronic parts that the 
Department of Defense or a Department of De-
fense contractor or subcontractor obtains from 
any source other than a source described in sub-
paragraph (A); 
(C) establish qualification requirements, 
consistent with the requirements of section 2319 
of title 10, United States Code, pursuant to
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which the Department of Defense may identify 
trusted suppliers that have appropriate policies 
and procedures in place to detect and avoid 
counterfeit electronic parts and suspect counter-
feit electronic parts; and 
(D) authorize Department of Defense con-
tractors and subcontractors to identify and use 
additional trusted suppliers, provided that— 
(i) the standards and processes for 
identifying such trusted suppliers complies 
with established industry standards; 
(ii) the contractor or subcontractor as-
sumes responsibility for the authenticity of 
parts provided by such supplier as provided 
in paragraph (2); and 
(iii) the selection of such trusted sup-
pliers is subject to review and audit by ap-
propriate Department of Defense officials. 
(4) REPORTING REQUIREMENT.—The revised reg-
ulations issued pursuant to paragraph (1) shall re-
quire that any Department of Defense contractor or 
subcontractor who becomes aware, or has reason to 
suspect, that any end item, component, part, or mate-
rial contained in supplies purchased by the Depart-
ment of Defense, or purchased by a contractor of sub-
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contractor for delivery to, or on behalf of, the Depart-
ment of Defense, contains counterfeit electronic parts 
or suspect counterfeit electronic parts, shall provide a 
written report on the matter within 30 calendar days 
to the Inspector General of the Department of Defense, 
the contracting officer for the contract pursuant to 
which the supplies are purchased, and the Govern-
ment-Industry Data Exchange Program or a similar 
program designated by the Secretary of Defense. 
(b) INSPECTION OF IMPORTED ELECTRONIC PARTS.— 
(1) INSPECTION
PROGRAM.—The Secretary of 
Homeland Security shall establish a risk-based meth-
odology for the enhanced targeting of electronic parts 
imported from any country, after consultation with 
the Secretary of Defense as to sources of counterfeit 
electronic parts and suspect counterfeit electronic 
parts in the supply chain for products purchased by 
the Department of Defense. 
(2) INFORMATION
SHARING.—If United States 
Customs and Border Protection suspects a product of 
being imported or exported in violation of section 42 
of the Lanham Act, and subject to any applicable 
bonding requirements, the Secretary of Treasury is 
authorized to share information appearing on, and 
unredacted samples of, products and their packaging
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and labels, or photographs of such products, pack-
aging and labels, with the rightholders of the trade-
marks suspected of being copied or simulated, for pur-
poses of determining whether the products are prohib-
ited from importation pursuant to such section. 
(c) CONTRACTOR
SYSTEMS
FOR
DETECTION
AND 
AVOIDANCE OF COUNTERFEIT AND SUSPECT COUNTERFEIT 
ELECTRONIC PARTS.— 
(1) IN GENERAL.—Not later than 270 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall implement a program for the improve-
ment of contractor systems for the detection and 
avoidance of counterfeit electronic parts and suspect 
counterfeit electronic parts. 
(2) ELEMENTS.—The program developed pursu-
ant to paragraph (1) shall— 
(A) require covered contractors to adopt and 
implement policies and procedures, consistent 
with applicable industry standards, for the detec-
tion and avoidance of counterfeit electronic parts 
and suspect counterfeit electronic parts, includ-
ing policies and procedures for training per-
sonnel, designing and maintaining systems to 
mitigate risks associated with parts obsolescence, 
making sourcing decisions, prioritizing mission
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† HR 1540 EAS 
critical and sensitive components, ensuring 
traceability of parts, developing lists of trusted 
and untrusted suppliers, flowing down require-
ments to subcontractors, inspecting and testing 
parts, reporting and quarantining suspect coun-
terfeit electronic parts and counterfeit electronic 
parts, and taking corrective action; 
(B) establish processes for the review and 
approval or disapproval of contractor systems for 
the detection and avoidance of counterfeit elec-
tronic parts and suspect counterfeit electronic 
parts, comparable to the processes established for 
contractor business systems under section 893 of 
the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111–383; 
124 Stat. 4311; 10 U.S.C. 2302 note); and 
(C) effective beginning one year after the 
date of the enactment of this Act, authorize the 
withholding of payments as provided in sub-
section (c) of such section, in the event that a 
contractor system for detection and avoidance of 
counterfeit electronic parts is disapproved pursu-
ant to subparagraph (B) and has not subse-
quently received approval.
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(3) COVERED CONTRACTOR AND COVERED CON-
TRACT DEFINED.—In this subsection, the terms ‘‘cov-
ered contractor’’ and ‘‘covered contract’’ have the 
meanings given such terms in section 893(f) of the Ike 
Skelton National Defense Authorization Act for Fiscal 
Year 2011 (Public Law 111–383; 124 Stat. 4312; 10 
U.S.C. 2302 note). 
(d) DEPARTMENT OF DEFENSE RESPONSIBILITIES.— 
Not later than 270 days after the date of the enactment of 
this Act, the Secretary of Defense shall take steps to address 
shortcomings in Department of Defense systems for the de-
tection and avoidance of counterfeit electronic parts and 
suspect counterfeit electronic parts. Such steps shall include, 
at a minimum, the following: 
(1) Policies and procedures applicable to Depart-
ment of Defense components engaged in the purchase 
of electronic parts, including requirements for train-
ing personnel, making sourcing decisions, ensuring 
traceability of parts, inspecting and testing parts, re-
porting and quarantining suspect counterfeit elec-
tronic parts and counterfeit electronic parts, and tak-
ing corrective action. The policies and procedures de-
veloped by the Secretary under this paragraph shall 
prioritize mission critical and sensitive components.
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(2) The establishment of a system for ensuring 
that government employees who become aware of, or 
have reason to suspect, that any end item, component, 
part, or material contained in supplies purchased by 
or for the Department of Defense contains counterfeit 
electronic parts or suspect counterfeit electronic parts 
are required to provide a written report on the matter 
within 30 calendar days to the Inspector General of 
the Department of Defense, the contracting officer for 
the contract pursuant to which the supplies are pur-
chased, and the Government-Industry Data Exchange 
Program or a similar program designated by the Sec-
retary of Defense. 
(3) A process for analyzing, assessing, and act-
ing on reports of counterfeit electronic parts and sus-
pect counterfeit electronic parts that are submitted to 
the Inspector General of the Department of Defense, 
contracting officers, and the Government-Industry 
Data Exchange Program or a similar program des-
ignated by the Secretary of Defense. 
(4) Guidance on appropriate remedial actions in 
the case of a supplier who has repeatedly failed to de-
tect and avoid counterfeit electronic parts and suspect 
counterfeit electronic parts or otherwise failed to exer-
cise due diligence in the detection and avoidance of
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such parts, including consideration of whether to sus-
pend or debar a supplier until such time as the sup-
plier has effectively addressed the issues that led to 
such failures. 
(e) TRAFFICKING IN COUNTERFEIT MILITARY GOODS 
OR SERVICES.—Section 2320 of title 18, United States 
Code, is amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(3) MILITARY GOODS OR SERVICES.— 
‘‘(A) IN GENERAL.—A person who commits 
an offense under paragraph (1) shall be punished 
in accordance with subparagraph (B) if— 
‘‘(i) the offense involved a good or serv-
ice described in paragraph (1) that if it 
malfunctioned, failed, or was compromised, 
could reasonably be foreseen to cause— 
‘‘(I) serious bodily injury or 
death; 
‘‘(II) disclosure of classified infor-
mation; 
‘‘(III) impairment of combat op-
erations; or
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† HR 1540 EAS 
‘‘(IV) other significant harm to a 
member of the Armed Forces or to na-
tional security; and 
‘‘(ii) the person had knowledge that the 
good or service is falsely identified as meet-
ing military standards or is intended for 
use in a military or national security ap-
plication. 
‘‘(B) PENALTIES.— 
‘‘(i) INDIVIDUAL.—An individual who 
commits an offense described in subpara-
graph (A) shall be fined not more than 
$5,000,000, imprisoned for not more than 
20 years, or both. 
‘‘(ii) PERSON OTHER THAN AN INDI-
VIDUAL.—A person other than an indi-
vidual that commits an offense described in 
subparagraph (A) shall be fined not more 
than $15,000,000. 
‘‘(C) SUBSEQUENT OFFENSES.— 
‘‘(i) INDIVIDUAL.—An individual who 
commits an offense described in subpara-
graph (A) after the individual is convicted 
of an offense under subparagraph (A) shall
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† HR 1540 EAS 
independently, in conjunction with, or as a compo-
nent of another good or service— 
‘‘(A) during the performance of the official 
duties of the Armed Forces of the United States 
or the reserve components of the Armed Forces; 
or 
‘‘(B) by the United States to perform or di-
rectly support— 
‘‘(i) combat operations; or 
‘‘(ii) critical national defense or na-
tional security functions.’’. 
(f) SENTENCING GUIDELINES.— 
(1) DEFINITION.—In this subsection, the term 
‘‘critical infrastructure’’ has the meaning given that 
term in application note 13(A) of section 2B1.1 of the 
Federal Sentencing Guidelines. 
(2) DIRECTIVE.—The United States Sentencing 
Commission shall review and, if appropriate, amend 
the Federal Sentencing Guidelines and policy state-
ments applicable to persons convicted of an offense 
under section 2320(a) of title 18, United States Code, 
to reflect the intent of Congress that penalties for such 
offenses be increased for defendants that sell infring-
ing products to, or for the use by or for, the Armed 
Forces or a Federal, State, or local law enforcement
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† HR 1540 EAS 
agency or for use in critical infrastructure or in na-
tional security applications. 
(3) REQUIREMENTS.—In amending the Federal 
Sentencing Guidelines and policy statements under 
paragraph (2), the United States Sentencing Commis-
sion shall— 
(A) ensure that the guidelines and policy 
statements, including section 2B5.3 of the Fed-
eral Sentencing Guidelines (and any successor 
thereto), reflect— 
(i) the serious nature of the offenses de-
scribed in section 2320(a) of title 18, 
United States Code; 
(ii) the need for an effective deterrent 
and appropriate punishment to prevent of-
fenses under section 2320(a) of title 18, 
United States Code; and 
(iii) the effectiveness of incarceration 
in furthering the objectives described in 
clauses (i) and (ii); 
(B) consider an appropriate offense level en-
hancement and minimum offense level for of-
fenses that involve a product used to maintain or 
operate critical infrastructure, or used by or for 
an entity of the Federal Government or a State
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† HR 1540 EAS 
or local government in furtherance of the admin-
istration of justice, national defense, or national 
security; 
(C) ensure reasonable consistency with other 
relevant directives and guidelines and Federal 
statutes; 
(D) make any necessary conforming changes 
to the guidelines; and 
(E) ensure that the guidelines relating to of-
fenses under section 2320(a) of title 18, United 
States Code, adequately meet the purposes of sen-
tencing, as described in section 3553(a)(2) of 
title 18, United States Code. 
(4) EMERGENCY AUTHORITY.—The United States 
Sentencing Commission shall— 
(A) promulgate the guidelines, policy state-
ments, or amendments provided for in this Act 
as soon as practicable, and in any event not 
later than 180 days after the date of the enact-
ment of this Act, in accordance with the proce-
dure set forth in section 21(a) of the Sentencing 
Act of 1987 (28 U.S.C. 994 note), as though the 
authority under that Act had not expired; and 
(B) pursuant to the emergency authority 
provided under subparagraph (A), make such
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† HR 1540 EAS 
conforming amendments to the Federal Sen-
tencing Guidelines as the Commission determines 
necessary to achieve consistency with other 
guideline provisions and applicable law. 
(g) DEFINITIONS.— 
(1) COUNTERFEIT ELECTRONIC PART.—The Sec-
retary of Defense shall define the term ‘‘counterfeit 
electronic part’’ for the purposes of this section. Such 
definition shall include used electronic parts that are 
represented as new. 
(2) SUSPECT
COUNTERFEIT
ELECTRONIC
PART 
AND ELECTRONIC PART.—For the purposes of this sec-
tion: 
(A) A part is a ‘‘suspect counterfeit elec-
tronic part’’ if visual inspection, testing, or other 
information provide reason to believe that the 
part may be a counterfeit part. 
(B) An ‘‘electronic part’’ means an inte-
grated circuit, a discrete electronic component 
(including but not limited to a transistor, capac-
itor, resistor, or diode), or a circuit assembly.
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† HR 1540 EAS 
SEC. 849. REPORT ON AUTHORITIES AVAILABLE TO THE DE-
PARTMENT OF DEFENSE FOR MULTIYEAR 
CONTRACTS FOR THE PURCHASE OF AD-
VANCED BIOFUELS. 
Not later than 120 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the con-
gressional defense committees a report on the authorities 
currently available to the Department of Defense for 
multiyear contracts for the purchase of advanced biofuels 
(as defined by section 211(o)(1)(B) of the Clean Air Act 
(42 U.S.C. 7545(o)(1)(B)). The report shall include a de-
scription of such additional authorities, if any, as the Sec-
retary considers appropriate to authorize the Department 
to enter into contracts for the purchase of advanced biofuels 
of sufficient length to reduce the impact to the Department 
of future price or supply shocks in the petroleum market, 
to benefit taxpayers, and to reduce United States depend-
ence on foreign oil. 
SEC. 850. COMPTROLLER GENERAL OF THE UNITED STATES 
REPORTS ON DEPARTMENT OF DEFENSE IM-
PLEMENTATION OF JUSTIFICATION AND AP-
PROVAL REQUIREMENTS FOR CERTAIN SOLE- 
SOURCE CONTRACTS. 
Not later than 90 days after March 1, 2012, and March 
1, 2013, the dates on which the Department of Defense sub-
mits to Congress a report on its implementation of section
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† HR 1540 EAS 
811 of the Fiscal Year 2010 National Defense Authorization 
Act, the Comptroller General of the United States shall sub-
mit to the congressional defense committees a report setting 
forth an assessment of the extent to which the implementa-
tion of such section 811 by the Department ensures that 
sole-source contracts are awarded in applicable procure-
ments only when those awards have been determined to be 
in the best interest of the Department. 
Subtitle D—Provisions Relating to 
Wartime Contracting 
SEC. 861. PROHIBITION ON CONTRACTING WITH THE 
ENEMY IN THE UNITED STATES CENTRAL 
COMMAND THEATER OF OPERATIONS. 
(a) PROHIBITION.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall revise the Department of Defense Sup-
plement to the Federal Acquisition Regulation to au-
thorize the head of a contracting activity, pursuant to 
a request from the Commander of the United States 
Central Command under subsection (c)(2)— 
(A) to restrict the award of Department of 
Defense contracts, grants, or cooperative agree-
ments that the head of the contracting activity 
determines in writing would provide funding di-
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† HR 1540 EAS 
rectly or indirectly to a person or entity that has 
been identified by the Commander of the United 
States Central Command as actively supporting 
an insurgency or otherwise actively opposing 
United States or coalition forces in a contin-
gency operation in the United States Central 
Command theater of operations; 
(B) to terminate for default any Depart-
ment contract, grant, or cooperative agreement 
upon a written determination by the head of the 
contracting activity that the contractor, or the 
recipient of the grant or cooperative agreement, 
has failed to exercise due diligence to ensure that 
none of the funds received under the contract, 
grant, or cooperative agreement are provided di-
rectly or indirectly to a person or entity who is 
actively supporting an insurgency or otherwise 
actively opposing United States or coalition 
forces in a contingency operation in the United 
States Central Command theater of operations; 
or 
(C) to void in whole or in part any Depart-
ment contract, grant, or cooperative agreement 
upon a written determination by the head of the 
contracting activity that the contract, grant, or
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† HR 1540 EAS 
cooperative agreement provides funding directly 
or indirectly to a person or entity that has been 
identified by the Commander of the United 
States Central Command as actively supporting 
an insurgency or otherwise actively opposing 
United States or coalition forces in a contin-
gency operation in the United States Central 
Command theater of operations. 
(2) TREATMENT AS VOID.—For purposes of this 
section: 
(A) A contract, grant, or cooperative agree-
ment that is void is unenforceable as contrary to 
public policy. 
(B) A contract, grant, or cooperative agree-
ment that is void in part is unenforceable as 
contrary to public policy with regard to a seg-
regable task or effort under the contract, grant, 
or cooperative agreement. 
(b) CONTRACT CLAUSE.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary 
shall revise the Department of Defense Supplement to 
the Federal Acquisition Regulation to require that— 
(A) the clause described in paragraph (2) 
shall be included in each covered contract, grant,
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† HR 1540 EAS 
and cooperative agreement of the Department 
that is awarded on or after the date of the enact-
ment of this Act; and 
(B) to the maximum extent practicable, 
each covered contract, grant, and cooperative 
agreement of the Department that is awarded be-
fore the date of the enactment of this Act shall 
be modified to include the clause described in 
paragraph (2). 
(2) CLAUSE DESCRIBED.—The clause described 
in this paragraph is a clause that— 
(A) requires the contractor, or the recipient 
of the grant or cooperative agreement, to exercise 
due diligence to ensure that none of the funds re-
ceived under the contract, grant, or cooperative 
agreement are provided directly or indirectly to 
a person or entity who is actively supporting an 
insurgency or otherwise actively opposing United 
States or coalition forces in a contingency oper-
ation; and 
(B) notifies the contractor, or the recipient 
of the grant or cooperative agreement, of the au-
thority of the head of the contracting activity to 
terminate or void the contract, grant, or coopera-
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† HR 1540 EAS 
tive agreement, in whole or in part, as provided 
in subsection (a). 
(3) COVERED CONTRACT, GRANT, OR COOPERA-
TIVE AGREEMENT.—In this subsection, the term ‘‘cov-
ered contract, grant, or cooperative agreement’’ means 
a contract, grant, or cooperative agreement with an 
estimated value in excess of $100,000 that will be per-
formed in the United States Central Command the-
ater of operations. 
(c) IDENTIFICATION
OF
CONTRACTS
WITH
SUP-
PORTERS OF THE ENEMY.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary, 
acting through the Commander of the United States 
Central Command, shall establish a program to use 
available intelligence to review persons and entities 
who receive United States funds through contracts, 
grants, and cooperative agreements performed in the 
United States Central Command theater of operations 
and identify any such persons and entities who are 
actively supporting an insurgency or otherwise ac-
tively opposing United States or coalition forces in a 
contingency operation. 
(2) NOTICE TO CONTRACTING ACTIVITIES.—If the 
Commander of the United States Central Command,
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† HR 1540 EAS 
acting pursuant to the program required by para-
graph (1), identifies a person or entity as actively 
supporting an insurgency or otherwise actively oppos-
ing United States or coalition forces in a contingency 
operation, the Commander may notify the head of a 
contracting activity in writing of such identification 
and request that the head of the contracting activity 
exercise the authority provided in subsection (a) with 
regard to any contracts, grants, or cooperative agree-
ments that provide funding directly or indirectly to 
the person or entity. 
(3) PROTECTION OF CLASSIFIED INFORMATION.— 
Classified information relied upon by the Commander 
of the United States Central Command to make an 
identification in accordance with this subsection may 
not be disclosed to a contractor or a recipient of a 
grant or cooperative agreement with respect to which 
an action is taken pursuant to the authority provided 
in subsection (a), or to their representatives, in the 
absence of a protective order issued by a court of com-
petent jurisdiction established under Article III of the 
Constitution of the United States that specifically ad-
dresses the conditions upon which such classified in-
formation may be so disclosed. 
(d) NONDELEGATION OF RESPONSIBILITIES.—
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† HR 1540 EAS 
(1) CONTRACT
ACTIONS.—The authority pro-
vided by subsection (a) to restrict, terminate, or void 
contracts, grants, and cooperative agreements may 
not be delegated below the level of the head of a con-
tracting activity. 
(2) IDENTIFICATION OF SUPPORT OF ENEMY.— 
The authority to make an identification under sub-
section (c)(1) may not be delegated below the level of 
the Commander of the United States Central Com-
mand. 
(e) CONTRACTS, GRANTS, AND COOPERATIVE AGREE-
MENTS OF OTHER FEDERAL AGENCIES.—This section shall 
not be construed to preclude the issuance of a government- 
wide regulation— 
(1) extending the authority in subsection (a) to 
the heads of contracting agencies outside the Depart-
ment; or 
(2) requiring the insertion of a contract clause 
similar to the clause described by subsection (b)(2) 
into contracts, grants, and cooperative agreements 
awarded by Federal agencies other than the Depart-
ment. 
(f) REPORTS.—Not later than March 1 of each of 2013, 
2014, and 2015, the Secretary shall submit to the congres-
sional defense committees a report on the use of the author-
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† HR 1540 EAS 
ity provided by this section in the preceding calendar year. 
Each report shall identify, for the calendar year covered 
by such report, each instance in which the Department of 
Defense exercised the authority to restrict, terminate, or 
void contracts, grants, and cooperative agreements pursu-
ant to subsection (a) and explain the basis for the action 
taken. Any report under this subsection may be submitted 
in classified form. 
(g) OTHER DEFINITION.—In this section, the term 
‘‘contingency operation’’ has the meaning given that term 
in section 101(a)(13) of title 10, United States Code. 
(h) SUNSET.—The authority to restrict, terminate, or 
void contracts, grants, and cooperative agreements pursu-
ant to subsection (a) shall cease to be effective on the date 
that is three years after the date of the enactment of this 
Act. 
SEC. 862. ADDITIONAL ACCESS TO CONTRACTOR AND SUB-
CONTRACTOR 
RECORDS 
IN 
THE 
UNITED 
STATES CENTRAL COMMAND THEATER OF OP-
ERATIONS. 
(a) DEPARTMENT OF DEFENSE CONTRACTS, GRANTS, 
AND COOPERATIVE AGREEMENTS.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall revise the Department of Defense Sup-
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† HR 1540 EAS 
plement to the Federal Acquisition Regulation to re-
quire that— 
(A) the clause described in paragraph (2) 
shall be included in each covered contract, grant, 
and cooperative agreement of the Department of 
Defense that is awarded on or after the date of 
the enactment of this Act; and 
(B) to the maximum extent practicable, 
each covered contract, grant, and cooperative 
agreement of the Department that is awarded be-
fore the date of the enactment of this Act shall 
be modified to include the clause described in 
paragraph (2). 
(2) CLAUSE.—The clause described in this para-
graph is a clause authorizing the Secretary, upon a 
written determination pursuant to paragraph (3), to 
examine any records of the contractor, the recipient 
of a grant or cooperative agreement, or any subcon-
tractor or subgrantee under such contract, grant, or 
cooperative agreement to the extent necessary to en-
sure that funds available under the contract, grant, or 
cooperative agreement— 
(A) are not subject to extortion or corrup-
tion; and
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† HR 1540 EAS 
(B) are not provided directly or indirectly 
to persons or entities that are actively sup-
porting an insurgency or otherwise actively op-
posing United States or coalition forces in a con-
tingency operation. 
(3) WRITTEN
DETERMINATION.—The authority 
to examine records pursuant to the contract clause de-
scribed in paragraph (2) may be exercised only upon 
a written determination by the contracting officer or 
comparable official responsible for a grant or coopera-
tive agreement, upon a finding by the Commander of 
the United States Central Command, that there is 
reason to believe that funds available under the con-
tract, grant, or cooperative agreement concerned may 
have been subject to extortion or corruption or may 
have been provided directly or indirectly to persons or 
entities that are actively supporting an insurgency or 
otherwise actively opposing United States or coalition 
forces in a contingency operation. 
(4) FLOWDOWN.—A clause described in para-
graph (2) shall also be required in any subcontract or 
subgrant under a covered contract, grant, or coopera-
tive agreement if the subcontract or subgrant has an 
estimated value in excess of $100,000.
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† HR 1540 EAS 
(b) CONTRACTS, GRANTS, AND COOPERATIVE AGREE-
MENTS OF OTHER FEDERAL AGENCIES.—This section shall 
not be construed to preclude the issuance of a government- 
wide regulation requiring the insertion of a clause similar 
to the clause described by subsection (a)(2) into contracts, 
grants, and cooperative agreements awarded by Federal 
agencies other than the Department of Defense. 
(c) REPORTS.—Not later than March 1 of each of 2013, 
2014, and 2015, the Secretary shall submit to the congres-
sional defense committees a report on the use of the author-
ity provided by this section in the preceding calendar year. 
Each report shall identify, for the calendar year covered 
by such report, each instance in which the Department of 
Defense exercised the authority provided under this section 
to examine records, explain the basis for the action taken, 
and summarize the results of any examination of records 
so undertaken, Any report under this subsection may be 
submitted in classified form. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘contingency operation’’ has the 
meaning given that term in section 101(a)(13) of title 
10, United States Code. 
(2) The term ‘‘covered contract, grant, or cooper-
ative agreement’’ means a contract, grant, or coopera-
tive agreement with an estimated value in excess of
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† HR 1540 EAS 
$100,000 that will be performed in the United States 
Central Command theater of operations in support of 
a contingency operation. 
(e) SUNSET.— 
(1) IN GENERAL.—The clause described by sub-
section (a)(2) shall not be required in any contract, 
grant, or cooperative agreement that is awarded after 
the date that is three years after the date of the enact-
ment of this Act. 
(2) CONTINUING EFFECT OF CLAUSES INCLUDED 
BEFORE SUNSET.—Any clause described by subsection 
(a)(2) that is included in a contract, grant, or cooper-
ative agreement pursuant this section before the date 
specified in paragraph (1) shall remain in effect in 
accordance with its terms. 
SEC. 863. JOINT URGENT OPERATIONAL NEEDS FUND TO 
RAPIDLY 
MEET 
URGENT 
OPERATIONAL 
NEEDS. 
(a) ESTABLISHMENT OF FUND.— 
(1) IN
GENERAL.—Chapter 131 of title 10, 
United States Code, is amended by inserting after sec-
tion 2216 the following new section:
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† HR 1540 EAS 
‘‘§ 2216a. Rapidly meeting urgent needs: Joint Urgent 
Operational Needs Fund 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury an account to be known as the ‘Joint Urgent 
Operational Needs Fund’ (in this section referred to as the 
‘Fund’). 
‘‘(b) ELEMENTS.—The Fund shall consist of the fol-
lowing: 
‘‘(1) Amounts appropriated to the Fund. 
‘‘(2) Amounts transferred to the Fund. 
‘‘(3) Any other amounts made available to the 
Fund by law. 
‘‘(c) USE OF FUNDS.—(1) Amounts in the Fund shall 
be available to the Secretary of Defense for capabilities that 
are determined by the Secretary, pursuant to the review 
process required by section 804(b) of the Ike Skelton Na-
tional Defense Authorization Act for Fiscal Year 2011 (10 
U.S.C. 2302 note), to be suitable for rapid fielding in re-
sponse to urgent operational needs. 
‘‘(2) The Secretary shall establish a merit-based proc-
ess for identifying equipment, supplies, services, training, 
and facilities suitable for funding through the Fund. 
‘‘(3) Nothing in this section shall be interpreted to re-
quire or enable any official of the Department of Defense 
to provide funding under this section pursuant to a congres-
sional earmark, as defined in clause 9 of Rule XXI of the
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† HR 1540 EAS 
Rules of the House of Representatives, or a congressionally 
directed spending item, as defined in paragraph 5 of Rule 
XLIV of the Standing Rules of the Senate. 
‘‘(d) TRANSFER AUTHORITY.—(1) Amounts in the 
Fund may be transferred by the Secretary of Defense from 
the Fund to any of the following accounts of the Department 
of Defense to accomplish the purpose stated in subsection 
(c): 
‘‘(A) Operation and maintenance accounts. 
‘‘(B) Procurement accounts. 
‘‘(C) Research, development, test, and evaluation 
accounts. 
‘‘(2) Upon determination by the Secretary that all or 
part of the amounts transferred from the Fund under para-
graph (1) are not necessary for the purpose for which trans-
ferred, such amounts may be transferred back to the Fund. 
‘‘(3) The transfer of an amount to an account under 
the authority in paragraph (1) shall be deemed to increase 
the amount authorized for such account by an amount equal 
to the amount so transferred. 
‘‘(4) The transfer authority provided by paragraphs 
(1) and (2) is in addition to any other transfer authority 
available to the Department of Defense by law. 
‘‘(e) SUNSET.—The authority to make expenditures or 
transfers from the Fund shall expire on the last day of the
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† HR 1540 EAS 
third fiscal year that begins after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 
2012.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 131 of such title is 
amended by inserting after the item relating to sec-
tion 2216 the following new item: 
‘‘2216a. Rapidly meeting urgent needs: Joint Urgent Operational Needs Fund.’’. 
(b) LIMITATION
ON COMMENCEMENT
OF EXPENDI-
TURES FROM FUND.—No expenditure may be made from 
the Joint Urgent Operational Needs Fund established by 
section 2216a of title 10, United States Code (as added by 
subsection (a)), until the Secretary of Defense certifies to 
the congressional defense committees that the Secretary has 
developed and implemented an expedited review process in 
compliance with the requirements of section 804 of the Ike 
Skelton National Defense Authorization Act for Fiscal Year 
2011 (Public Law 111–383; 124 Stat. 4256; 10 U.S.C. 2302 
note). 
SEC. 864. INCLUSION OF ASSOCIATED SUPPORT SERVICES 
IN RAPID ACQUISITION AND DEPLOYMENT 
PROCEDURES FOR SUPPLIES. 
(a) INCLUSION.—Section 806 of the Bob Stump Na-
tional Defense Authorization Act for Fiscal Year 2003 (10 
U.S.C. 2302 note) is amended by striking ‘‘supplies’’ each
341 
† HR 1540 EAS 
place it appears (other than subsections (a)(1)(B) and (f)) 
and inserting ‘‘supplies and associated support services’’. 
(b) DEFINITION.—Such section is further amended by 
adding at the end the following new subsection: 
‘‘(g) ASSOCIATED SUPPORT SERVICES DEFINED.—In 
this section, the term ‘associated support services’ means 
training, operation, maintenance, and support services 
needed in connection with the deployment of supplies to be 
acquired pursuant to the authority of this section. The term 
does not include functions that are inherently governmental 
or otherwise exempted from private sector performance.’’. 
(c) LIMITATION ON AVAILABILITY OF AUTHORITY.— 
The authority to acquire associated support services pursu-
ant to section 806 of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003, as amended by this 
section, shall not take effect until the Secretary of Defense 
certifies to the congressional defense committees that the 
Secretary has developed and implemented an expedited re-
view process in compliance with the requirements of section 
804 of the Ike Skelton National Defense Authorization Act 
for Fiscal Year 2011 (Public Law 111–383; 124 Stat. 4256; 
10 U.S.C. 2302 note).
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SEC. 865. REACH-BACK CONTRACTING AUTHORITY FOR OP-
ERATION ENDURING FREEDOM AND OPER-
ATION NEW DAWN. 
(a) AUTHORITY TO DESIGNATE LEAD CONTRACTING 
ACTIVITY.—The Under Secretary of Defense for Acquisition, 
Technology, and Logistics may designate a single con-
tracting activity inside the United States to act as the lead 
contracting activity with authority for use of domestic ca-
pabilities in support of overseas contracting for Operation 
Enduring Freedom and Operation New Dawn. The con-
tracting activity so designated shall be known as the ‘‘lead 
reach-back contracting authority’’ for such operations. 
(b) LIMITED AUTHORITY FOR USE OF OUTSIDE-THE- 
UNITED-STATES-THRESHOLDS.—The head of the con-
tracting authority designated pursuant to subsection (a) 
may, when awarding a contract inside the United States 
for performance in the theater of operations for Operation 
Enduring Freedom or Operation New Dawn, use the over-
seas increased micro-purchase threshold and the overseas in-
creased simplified acquisition threshold in the same manner 
and to the same extent as if the contract were to be awarded 
and performed outside the United States. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘overseas increased micro-purchase 
threshold’’ means the amount specified in paragraph
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† HR 1540 EAS 
(1)(B) of section 1903(b) of title 41, United States 
Code. 
(2) The term ‘‘overseas increased simplified ac-
quisition threshold’’ means the amount specified in 
paragraph (2)(B) of section 1903(b) of title 41, 
United States Code. 
SEC. 866. INCLUSION OF CONTRACTOR SUPPORT REQUIRE-
MENTS IN DEPARTMENT OF DEFENSE PLAN-
NING DOCUMENTS. 
(a) ELEMENTS IN QDR REPORTS TO CONGRESS.— 
Section 118(d) of title 10, United States Code, is amend-
ed— 
(1) in paragraph (4)— 
(A) in subparagraph (D), by striking ‘‘and’’ 
at the end; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(F) the roles and responsibilities that 
would be discharged by contractors.’’; 
(2) in paragraph (6), by striking ‘‘manpower 
and 
sustainment’’ 
and 
inserting 
‘‘manpower, 
sustainment, and contractor support’’; and
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† HR 1540 EAS 
(3) in paragraph (8), by inserting ‘‘, and the 
scope of contractor support,’’ after ‘‘Defense Agen-
cies’’. 
(b) CHAIRMAN OF JOINT CHIEFS OF STAFF ASSESS-
MENTS OF CONTRACTOR SUPPORT OF ARMED FORCES.— 
(1) ASSESSMENTS UNDER CONTINGENCY PLAN-
NING.—Paragraph (3) of subsection (a) of section 153 
of such title is amended— 
(A) by redesignating subparagraphs (C) 
and (D) as subparagraphs (D) and (E), respec-
tively; and 
(B) by inserting after subparagraph (B) the 
following new subparagraph (C): 
‘‘(C) Identifying the support functions that are 
likely to require contractor performance under those 
contingency plans, and the risks associated with the 
assignment of such functions to contractors.’’. 
(2) ASSESSMENTS UNDER ADVICE ON REQUIRE-
MENTS, PROGRAMS, AND BUDGET.—Paragraph (4)(E) 
of such subsection is amended by inserting ‘‘and con-
tractor support’’ after ‘‘area of manpower’’. 
(3) ASSESSMENTS FOR BIENNIAL REVIEW OF NA-
TIONAL MILITARY STRATEGY.—Subsection (d) of such 
section is amended—
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† HR 1540 EAS 
(A) in paragraph (2), by adding at the end 
the following new subparagraph: 
‘‘(I) Assessment of the requirements for con-
tractor support of the armed forces in conducting 
peacetime training, peacekeeping, overseas contin-
gency operations, and major combat operations, and 
the risks associated with such support.’’; and 
(B) in paragraph (3)(B), by striking ‘‘and 
the levels of support from allies and other friend-
ly nations’’ and inserting ‘‘the levels of support 
from allies and other friendly nations, and the 
levels of contractor support’’. 
Subtitle E—Other Matters 
SEC. 881. EXTENSION OF AVAILABILITY OF FUNDS IN THE 
DEFENSE ACQUISITION WORKFORCE DEVEL-
OPMENT FUND. 
(a) EXTENSION OF AVAILABILITY.—Section 1705(e)(6) 
of title 10, United States Code, is amended by striking 
‘‘under subsection (d)(2)’’ and inserting ‘‘(whether by credit 
in accordance with subsection (d)(2), by transfer pursuant 
to subsection (d)(3), by direct appropriation, or by de-
posit)’’. 
(b) PROSPECTIVE APPLICABILITY.—The amendment 
made by subsection (a) shall not apply to funds appro-
priated before the date of the enactment of this Act.
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† HR 1540 EAS 
(c) NATURE OF AVAILABILITY.—Such section is further 
amended by striking ‘‘expenditure’’ and inserting ‘‘obliga-
tion’’. 
SEC. 882. MODIFICATION OF DELEGATION OF AUTHORITY 
TO MAKE DETERMINATIONS ON ENTRY INTO 
COOPERATIVE 
RESEARCH 
AND 
DEVELOP-
MENT AGREEMENTS WITH NATO AND OTHER 
FRIENDLY ORGANIZATIONS AND COUNTRIES. 
Section 2350a(b)(2) of title 10, United States Code, is 
amended by striking ‘‘and to one other official of the De-
partment of Defense’’ and inserting ‘‘, the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, and 
the Principal Deputy Under Secretary of Defense for Acqui-
sition, Technology, and Logistics’’. 
SEC. 883. RATE OF PAYMENT FOR AIRLIFT SERVICES 
UNDER THE CIVIL RESERVE AIR FLEET PRO-
GRAM. 
(a) RATE OF PAYMENT.— 
(1) IN
GENERAL.—Chapter 931 of title 10, 
United States Code, is amended by inserting after sec-
tion 9511 the following new section: 
‘‘§ 9511a. Civil Reserve Air Fleet contracts: payment 
rate 
‘‘(a) AUTHORITY.—The Secretary of Defense shall de-
termine a fair and reasonable rate of payment for airlift
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† HR 1540 EAS 
services provided to the Department of Defense by air car-
riers who are participants in the Civil Reserve Air Fleet 
program. Such rate of payment shall be determined in ac-
cordance with— 
‘‘(1) the methodology and ratemaking procedures 
in effect on the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2012; and 
‘‘(2) such other procedures as the Secretary may 
prescribe by regulation. 
‘‘(b) REGULATIONS.—The Secretary shall prescribe 
regulations for purposes of subsection (a). Such regulations 
shall include a process for modifying the ratemaking meth-
odology referred to in paragraph (1) of that subsection. The 
Secretary may exclude from the applicability of such regu-
lations any airlift services contract made through the use 
of competitive procedures. 
‘‘(c) COMMITMENT OF AIRCRAFT AS BUSINESS FAC-
TOR.—The Secretary may, in determining the quantity of 
business to be received under an airlift services contract for 
which the rate of payment is determined in accordance with 
subsection (a), use as a factor the relative amount of airlift 
capability committed by each air carrier to the Civil Re-
serve Air Fleet. 
‘‘(d) INAPPLICABLE PROVISIONS OF LAW.—An airlift 
services contract for which the rate of payment is deter-
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† HR 1540 EAS 
mined in accordance with subsection (a) shall not be subject 
to the provisions of section 2306a of this title or to the pro-
visions of subsections (a) and (b) of section 1502 of title 
41.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 931 of such title is 
amended by inserting after the item relating to sec-
tion 9511 the following new item: 
‘‘9511a. Civil Reserve Air Fleet contracts: payment rate.’’. 
(b) INITIAL REGULATIONS.—Regulations shall be pre-
scribed under section 9511a(b) of title 10, United States 
Code (as added by subsection (a)), not later than 180 days 
after the date of the enactment of this Act. 
SEC. 884. CLARIFICATION OF DEPARTMENT OF DEFENSE 
AUTHORITY 
TO 
PURCHASE 
RIGHT-HAND 
DRIVE PASSENGER SEDAN VEHICLES AND AD-
JUSTMENT OF THRESHOLD FOR INFLATION. 
(a) 
CLARIFICATION
OF
AUTHORITY.—Section 
2253(a)(2) of title 10, United States Code, is amended by 
striking ‘‘at a cost of not more than $30,000 each’’ and in-
serting ‘‘, but at a cost of not more than $40,000 each for 
passenger sedans’’. 
(b) ADJUSTMENT FOR INFLATION.—The Department of 
Defense representative to the Federal Acquisition Regu-
latory Council established under section 1302 of title 41, 
United States Code, shall ensure that the threshold estab-
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† HR 1540 EAS 
lished in section 2253 of title 10, United States Code, for 
the acquisition of right-hand drive passenger sedans is in-
cluded on the list of dollar thresholds that are subject to 
adjustment for inflation in accordance with the require-
ments of section 1908 of title 41, United States Code, and 
is adjusted pursuant to such provision, as appropriate. 
SEC. 885. EXTENSION AND EXPANSION OF SMALL BUSINESS 
PROGRAMS OF THE DEPARTMENT OF DE-
FENSE. 
(a) EXTENSION OF SBIR PROGRAM.—Section 9(m)(2) 
of the Small Business Act (15 U.S.C. 638(m)(2)) is amend-
ed by striking ‘‘September 30, 2010’’ and inserting ‘‘Sep-
tember 30, 2018’’. 
(b) 
EXTENSION
OF
STTR 
PROGRAM.—Section 
9(n)(1)(A)(ii) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)(ii)) is amended by striking ‘‘2010’’ and in-
serting ‘‘2018’’. 
(c) EXTENSION AND EXPANSION OF COMMERCIALIZA-
TION PILOT PROGRAM.—Section 9(y) of the Small Business 
Act (15 U.S.C. 638(y)) is amended— 
(1) in paragraphs (1), (2), and (4), by inserting 
‘‘and the Small Business Technology Transfer Pro-
gram’’ after ‘‘Small Business Innovation Research 
Program’’; and
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† HR 1540 EAS 
(2) in paragraph (6), by striking ‘‘2010’’ and in-
serting ‘‘2018’’. 
SEC. 886. THREE-YEAR EXTENSION OF TEST PROGRAM FOR 
NEGOTIATION OF COMPREHENSIVE SMALL 
BUSINESS SUBCONTRACTING PLANS. 
(a) THREE-YEAR EXTENSION.—Subsection (e) of sec-
tion 834 of the National Defense Authorization Act for Fis-
cal Years 1990 and 1991 (15 U.S.C. 637 note) is amended 
by striking ‘‘September 30, 2011’’ and inserting ‘‘September 
30, 2014’’. 
(b) ADDITIONAL REPORT.—Subsection (f) of such sec-
tion is amended by inserting ‘‘and March 1, 2012,’’ after 
‘‘March 1, 1994,’’. 
SEC. 887. FIVE-YEAR EXTENSION OF DEPARTMENT OF DE-
FENSE MENTOR-PROTEGE PROGRAM. 
Section 831(j) of the National Defense Authorization 
Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘September 30, 
2010’’ and inserting ‘‘September 30, 2015’’; and 
(2) in paragraph (2), by striking ‘‘September 30, 
2013’’ and inserting ‘‘September 30, 2018’’.
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† HR 1540 EAS 
SEC. 888. REPORT ON ALTERNATIVES FOR THE PROCURE-
MENT OF FIRE-RESISTANT AND FIRE-RETARD-
ANT FIBER AND MATERIALS FOR THE PRO-
DUCTION OF MILITARY PRODUCTS. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Vehicle and aircraft fires remain a signifi-
cant force protection and safety threat for the mem-
bers of the Armed Forces, whether deployed in support 
of ongoing military operations or while training for 
future deployment. 
(2) Since 2003, the United States Army Institute 
of Surgical Research, the sole burn center within the 
Department of Defense, has admitted and treated 
more than 800 combat casualties with burn injuries. 
The probability of this type of injury remains ex-
tremely high with continued operations in Iraq and 
the surge of forces into Afghanistan and the associated 
increase in combat operations. 
(3) Advanced fiber products currently in use to 
protect first responders such as fire fighters and fac-
tory and refinery personnel in the United States steel 
and fuel refinery industries may provide greater pro-
tection against burn injuries to members of the Armed 
Forces. 
(b) REPORT.—Not later than February 28, 2012, the 
Secretary of Defense shall submit to the Committee on
352 
† HR 1540 EAS 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on fire- 
resistant and fire-retardant fibers and materials for the 
production of military products. The report shall include 
the following: 
(1) An identification of the fire-resistance or 
fire-retardant properties or capabilities of fibers and 
materials (whether domestic or foreign) currently used 
for the production of military products that require 
such properties or capabilities (including include uni-
forms, protective equipment, firefighting equipment, 
lifesaving equipment, and life support equipment), 
and an assessment of the sufficiency, adequacy, avail-
ability, and cost of such fibers and materials for that 
purpose. 
(2) An identification of the fire-resistance or 
fire-retardant properties or capabilities of fibers and 
materials (whether domestic or foreign) otherwise 
available in the United States that are suitable for 
use in the production of military products that re-
quire such properties or capabilities, and an assess-
ment of the sufficiency, adequacy, availability, and 
cost of such fibers and materials for that purpose.
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† HR 1540 EAS 
SEC. 889. OVERSIGHT OF AND REPORTING REQUIREMENTS 
WITH RESPECT TO EVOLVED EXPENDABLE 
LAUNCH VEHICLE PROGRAM. 
The Secretary of Defense shall— 
(1) redesignate the Evolved Expendable Launch 
Vehicle program as a major defense acquisition pro-
gram not in the sustainment phase under section 
2430 of title 10, United States Code; or 
(2) require the Evolved Expendable Launch Ve-
hicle program— 
(A) to provide to the congressional defense 
committees all information with respect to the 
cost, schedule, and performance of the program 
that would be required to be provided under sec-
tions 2431 (relating to weapons development and 
procurement schedules), 2432 (relating to Select 
Acquisition Reports, including updated program 
life-cycle cost estimates), and 2433 (relating to 
unit cost reports) of title 10, United States Code, 
with respect to the program if the program were 
designated as a major defense acquisition pro-
gram not in the sustainment phase; and 
(B) to provide to the Under Secretary of 
Defense for Acquisition, Technology, and Logis-
tics—
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† HR 1540 EAS 
(i) a quarterly cost and status report, 
commonly known as a Defense Acquisition 
Executive Summary, which serves as an 
early-warning of actual and potential prob-
lems with a program and provides for pos-
sible mitigation plans; and 
(ii) earned value management data 
that contains measurements of contractor 
technical, schedule, and cost performance. 
SEC. 890. DEPARTMENT OF DEFENSE ASSESSMENT OF IN-
DUSTRIAL BASE FOR NIGHT VISION IMAGE 
INTENSIFICATION SENSORS. 
(a) ASSESSMENT REQUIRED.—The Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall un-
dertake an assessment of the current and long-term avail-
ability within the United States and international indus-
trial base of critical equipment, components, subcompo-
nents, and materials (including, but not limited to, lenses, 
tubes, and electronics) needed to support current and future 
United States military requirements for night vision image 
intensification sensors. In carrying out the assessment, the 
Secretary shall— 
(1) identify items in connection with night vi-
sion image intensification sensors that the Secretary
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† HR 1540 EAS 
determines are critical to military readiness, includ-
ing key components, subcomponents, and materials; 
(2) describe and perform a risk assessment of the 
supply chain for items identified under paragraph 
(1) and evaluate the extent to which— 
(A) the supply chain for such items could be 
disrupted by a loss of industrial capability in 
the United States; and 
(B) the industrial base obtains such items 
from foreign sources; and 
(3) describe and assess current and future invest-
ment, gaps, and vulnerabilities in the ability of the 
Department to respond to the potential loss of domes-
tic or international sources that provide items identi-
fied under paragraph (1); and 
(4) identify and assess current strategies to lever-
age innovative night vision image intensification 
technologies being pursued in both Department of De-
fense laboratories and the private sector for the next 
generation of night vision capabilities, including an 
assessment of the competitiveness and technological 
advantages of the United States night vision image 
intensification industrial base. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall
356 
† HR 1540 EAS 
submit to Congress a report containing the results of the 
assessment required under subsection (a). 
SEC. 891. IMPLEMENTATION OF ACQUISITION STRATEGY 
FOR EVOLVED EXPENDABLE LAUNCH VEHI-
CLE. 
(a) IN GENERAL.—The Secretary of Defense shall sub-
mit, with the budget justification materials submitted to 
Congress in support of the budget of the Department of De-
fense for fiscal year 2013 (as submitted with the budget of 
the President under section 1105(a) of title 31, United 
States Code), the following information: 
(1) A description of how the strategy of the De-
partment to acquire space launch capability under 
the Evolved Expendable Launch Vehicle program im-
plements each of the recommendations included in the 
Report of the Government Accountability Office on 
the Evolved Expendable Launch Vehicle, dated Sep-
tember 15, 2011 (GAO–11–641). 
(2) With respect to any such recommendation 
that the Department does not implement, an expla-
nation of how the Department is otherwise addressing 
the deficiencies identified in that report. 
(b) ASSESSMENT BY COMPTROLLER GENERAL OF THE 
UNITED STATES.—Not later than 60 days after the submis-
sion of the information required by subsection (a), the
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† HR 1540 EAS 
Comptroller General of the United States shall submit to 
the congressional defense committees an assessment of that 
information and any additional findings or recommenda-
tions the Comptroller General considers appropriate. 
SEC. 892. REPORT ON IMPACT OF FOREIGN BOYCOTTS ON 
THE DEFENSE INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than October 1, 2012, the 
Department of Defense shall submit to the appropriate con-
gressional committees a report setting forth an assessment 
of the impact of foreign boycotts on the defense industrial 
base. 
(b) ELEMENT.—The report required by subsection (a) 
shall include a summary of foreign boycotts that posed a 
material risk to the defense industrial base from January 
2008 to the date of the enactment of this Act. 
(c) DEFINITIONS.—In this section: 
(1) FOREIGN BOYCOTT.—The term ‘‘foreign boy-
cott’’ means any policy or practice adopted by a for-
eign government or foreign business enterprise in-
tended to penalize, disadvantage, or harm any con-
tractor or subcontractor of the Department of Defense 
on account of the provision by that contractor or sub-
contractor of any product or service to the Depart-
ment.
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† HR 1540 EAS 
(2) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the congressional defense committees; 
and 
(B) the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs 
of the House of Representatives. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. QUALIFICATIONS FOR APPOINTMENTS TO THE 
POSITION OF DEPUTY SECRETARY OF DE-
FENSE. 
Section 132(a) of title 10, United States Code, is 
amended by inserting after the first sentence the following 
new sentence: ‘‘The Deputy Secretary shall be appointed 
from among persons most highly qualified for the position 
by reason of background and experience, including persons 
with appropriate management experience.’’.
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† HR 1540 EAS 
SEC. 902. DESIGNATION OF DEPARTMENT OF DEFENSE SEN-
IOR OFFICIAL WITH PRINCIPAL RESPONSI-
BILITY FOR AIRSHIP PROGRAMS. 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall— 
(1) designate a senior official of the Department 
of Defense as the official with principal responsibility 
for the airship programs of the Department; and 
(2) set forth the responsibilities of that senior of-
ficial with respect to such programs. 
SEC. 903. MEMORANDA OF AGREEMENT ON SYNCHRONI-
ZATION OF ENABLING CAPABILITIES OF GEN-
ERAL PURPOSE FORCES WITH THE REQUIRE-
MENTS OF SPECIAL OPERATIONS FORCES. 
By not later than 180 days after the date of the enact-
ment of this Act, each Secretary of a military department 
shall enter into a memorandum of agreement with the Com-
mander of the United States Special Operations Command 
establishing procedures by which the availability of the ena-
bling capabilities of the general purpose forces of the Armed 
Forces under the jurisdiction of such Secretary will be syn-
chronized with the training and deployment cycle of special 
operations forces under the United States Special Oper-
ations Command.
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† HR 1540 EAS 
SEC. 904. ENHANCEMENT OF ADMINISTRATION OF THE 
UNITED STATES AIR FORCE INSTITUTE OF 
TECHNOLOGY. 
(a) IN GENERAL.—Chapter 901 of title 10, United 
States Code, is amended by inserting after section 9314a 
the following new section: 
‘‘§ 9314b. United States Air Force Institute of Tech-
nology: administration 
‘‘(a) COMMANDANT.— 
‘‘(1) SELECTION.—The Commandant of the 
United States Air Force Institute of Technology shall 
be selected by the Secretary of the Air Force. 
‘‘(2) ELIGIBILITY.—The Commandant shall be 
one of the following: 
‘‘(A) An officer of the Air Force on active 
duty in a grade not below the grade of colonel 
who possesses such qualifications as the Sec-
retary considers appropriate and is assigned or 
detailed to such position. 
‘‘(B) A member of the Senior Executive 
Service or a civilian individual, including an 
individual who was retired from the Air Force 
in a grade not below brigadier general, who has 
the qualifications appropriate for the position of 
Commandant and is selected by the Secretary as 
the best qualified from among candidates for the
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† HR 1540 EAS 
position in accordance with a process and cri-
teria determined by the Secretary. 
‘‘(3) TERM FOR CIVILIAN COMMANDANT.—An in-
dividual selected for the position of Commandant 
under paragraph (2)(B) shall serve in that position 
for a term of not more than five years and may be 
continued in that position for an additional term of 
up to five years. 
‘‘(b) PROVOST AND ACADEMIC DEAN.— 
‘‘(1) IN GENERAL.—There is established at the 
United States Air Force Institute of Technology the 
civilian position of Provost and Academic Dean who 
shall be appointed by the Secretary. 
‘‘(2) TERM.—An individual appointed to the po-
sition of Provost and Academic Dean shall serve in 
that position for a term of five years. 
‘‘(3) COMPENSATION.—The individual serving as 
Provost and Academic Dean is entitled to such com-
pensation for such service as the Secretary shall pre-
scribe for purposes of this section, but not more than 
the rate of compensation authorized for level IV of the 
Executive Schedule.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 901 of such title is amended by
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inserting after the item relating to section 9314a the fol-
lowing new item: 
‘‘9314b. United States Air Force Institute of Technology: administration.’’. 
SEC. 905. DEFENSE LABORATORY MATTERS. 
(a) REPEAL OF SUNSET ON DIRECT HIRE AUTHORITY 
AT PERSONNEL DEMONSTRATION LABORATORIES.—Section 
1108 of the Duncan Hunter National Defense Authorization 
Act for Fiscal Year 2009 (10 U.S.C. 1580 prec. note) is 
amended by striking subsection (e). 
(b) REPEAL OF SUNSET ON MECHANISMS TO PROVIDE 
FUNDS FOR LABORATORIES FOR RESEARCH AND DEVELOP-
MENT OF TECHNOLOGIES FOR MILITARY MISSIONS.—Sec-
tion 219 of the Duncan Hunter National Defense Author-
ization Act for Fiscal Year 2009 (10 U.S.C. 2358 note) is 
amended by striking subsection (c). 
(c) REPEAL OF SUNSET ON AUTHORITY FOR UNSPEC-
IFIED MINOR MILITARY CONSTRUCTION FOR LABORATORY 
REVITALIZATION.—Section 2805(d) of title 10, United 
States Code, is amended by striking paragraph (5). 
(d) ASSESSMENT OF MILITARY CONSTRUCTION RE-
QUIRED FOR LABORATORY REVITALIZATION AND RECAPI-
TALIZATION.— 
(1) ASSESSMENT REQUIRED.—The Secretary of 
Defense shall conduct an assessment of the current re-
quirements of the defense laboratories for the revital-
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ization and recapitalization of their infrastructure in 
order to identity required military construction. 
(2) ELEMENTS.—The assessment required by 
paragraph (1) shall— 
(A) identify the military construction re-
quirements of the defense laboratories described 
in paragraph (1) that cannot be met by current 
authorities for unspecified minor military con-
struction; and 
(B) establish for each Armed Force a 
prioritized list of military construction projects 
to meet the requirements described in subpara-
graph (A), and identify among the projects so 
listed each project previously submitted to a 
military construction review panel and the 
length of time such project has remained 
unaddressed. 
(3) REPORTS.— 
(A) STATUS REPORT.—Not later than 180 
days after the date of the enactment of this Act, 
the Secretary shall submit to the congressional 
defense committees a report describing the cur-
rent status of the assessment required by para-
graph (1).
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(B) FINAL
REPORT.—Not later than one 
year after the date of the enactment of this Act, 
the Secretary shall submit to the congressional 
defense committees a report on the assessment. 
The report shall set forth the following: 
(i) The results of the assessment. 
(ii) Such recommendations for legisla-
tive or administrative action as the Sec-
retary considers appropriate in light of the 
results of the assessment. 
(4) DEFENSE
LABORATORY
DEFINED.—In this 
subsection, the term ‘‘defense laboratory’’ means a 
laboratory (as that term is defined in section 
2805(d)(4) of title 10, United States Code) that is 
owned by the United States and under the jurisdic-
tion of the Secretary of a military department. 
SEC. 906. ASSESSMENT OF DEPARTMENT OF DEFENSE AC-
CESS TO NON-UNITED STATES CITIZENS WITH 
SCIENTIFIC 
AND 
TECHNICAL 
EXPERTISE 
VITAL TO THE NATIONAL SECURITY INTER-
ESTS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall conduct an assessment of current and potential 
mechanisms to permit the Department of Defense to employ 
non-United States citizens with critical scientific and tech-
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† HR 1540 EAS 
nical skills that are vital to the national security interests 
of the United States. 
(b) ELEMENTS.—The assessment required by sub-
section (a) shall include the following: 
(1) An identification of the critical scientific and 
technical skills that are vital to the national security 
interests of the United States and are anticipated to 
be in short supply over the next 10 years, and an 
identification of the military positions and civilian 
positions of the Department of Defense that require 
such skills. 
(2) An identification of mechanisms and incen-
tives for attracting persons who are non-United 
States citizens with such skills to such positions, in-
cluding the expedited extension of United States citi-
zenship. 
(3) An identification and assessment of any con-
cerns associated with the provision of security clear-
ances to such persons. 
(4) An identification and assessment of any con-
cerns associated with the employment of such persons 
in civilian positions in the United States defense in-
dustrial base, including in positions in which United 
States citizenship, a security clearance, or both are a 
condition of employment.
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(c) REPORTS.— 
(1) STATUS REPORT.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary shall submit to the congressional defense com-
mittees a report describing the current status of the 
assessment required by subsection (a). 
(2) FINAL
REPORT.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary shall submit to the congressional defense com-
mittees a report on the assessment. The report shall 
set forth the following: 
(A) The results of the assessment. 
(B) Such recommendations for legislative or 
administrative action as the Secretary considers 
appropriate in light of the results of the assess-
ment. 
SEC. 907. SENSE OF CONGRESS ON USE OF MODELING AND 
SIMULATION IN DEPARTMENT OF DEFENSE 
ACTIVITIES. 
It is the sense of Congress to encourage the Department 
of Defense to continue the use and enhancement of modeling 
and simulation (M&S) across the spectrum of defense ac-
tivities, including acquisition, analysis, experimentation, 
intelligence, planning, medical, test and evaluation, and 
training.
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SEC. 908. SENSE OF CONGRESS ON TIES BETWEEN JOINT 
WARFIGHTING AND COALITION CENTER AND 
ALLIED 
COMMAND 
TRANSFORMATION 
OF 
NATO. 
It is the sense of Congress that the successor organiza-
tion to the United States Joint Forces Command 
(USJFCOM), the Joint Warfighting and Coalition Center, 
should establish close ties with the Allied Command Trans-
formation (ACT) command of the North Atlantic Treaty 
Organization (NATO). 
SEC. 909. REPORT ON EFFECTS OF PLANNED REDUCTIONS 
OF PERSONNEL AT THE JOINT WARFARE 
ANALYSIS CENTER ON PERSONNEL SKILLS. 
Not later than 120 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the con-
gressional defense committees a report setting forth a de-
scription and assessment of the effects of planned reductions 
of personnel at the Joint Warfare Analysis Center (JWAC) 
on the personnel skills to be available at the Center after 
the reductions. The report shall be in unclassified form, but 
may contain a classified annex. 
Subtitle B—Space Activities 
SEC. 911. COMMERCIAL SPACE LAUNCH COOPERATION. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, is amended by adding at the end the following 
new section:
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‘‘§ 2275. Commercial space launch cooperation 
‘‘(a) AUTHORITY.—The Secretary of Defense may, to 
assist the Secretary of Transportation in carrying out re-
sponsibilities set forth in titles 49 and 51 with respect to 
private sector involvement in commercial space activities 
and public-private partnerships pertaining to space trans-
portation infrastructure, take such actions as the Secretary 
considers to be in the best interests of the Federal Govern-
ment to do the following: 
‘‘(1) Maximize the use of the capacity of the 
space transportation infrastructure of the Department 
of Defense by the private sector in the United States. 
‘‘(2) Maximize the effectiveness and efficiency of 
the space transportation infrastructure of the Depart-
ment of Defense. 
‘‘(3) Reduce the cost of services provided by the 
Department of Defense related to space transportation 
infrastructure at launch support facilities and space 
recovery support facilities. 
‘‘(4) Encourage commercial space activities by 
enabling investment in the space transportation in-
frastructure of the Department of Defense by covered 
entities. 
‘‘(5) Foster cooperation between the Department 
of Defense and covered entities.
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† HR 1540 EAS 
‘‘(b) AUTHORITY FOR CONTRACTS AND OTHER AGREE-
MENTS RELATING
TO SPACE TRANSPORTATION INFRA-
STRUCTURE.—The Secretary of Defense— 
‘‘(1) may enter into a contract or other agree-
ment with a covered entity to provide to the covered 
entity support and services related to the space trans-
portation infrastructure of the Department of Defense; 
and 
‘‘(2) upon the request of that covered entity, may 
include such support and services in the space launch 
and reentry range support requirements of the De-
partment of Defense if— 
‘‘(A) the Secretary determines that the in-
clusion of such support and services in such re-
quirements— 
‘‘(i) is in the best interests of the Fed-
eral Government; 
‘‘(ii) does not interfere with the re-
quirements of the Department of Defense; 
and 
‘‘(iii) does not compete with the com-
mercial space activities of other covered en-
tities, unless that competition is in the na-
tional security interests of the United 
States; and
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‘‘(B) any commercial requirement included 
in a contract or other agreement entered into 
under this subsection has full non-Federal fund-
ing before the execution of the contract or other 
agreement. 
‘‘(c) CONTRIBUTIONS.— 
‘‘(1) IN
GENERAL.—The Secretary of Defense 
may enter into contracts or other agreements with 
covered entities on a cooperative and voluntary basis 
to accept contributions of funds, services, and equip-
ment to carry out this section. 
‘‘(2) USE OF CONTRIBUTIONS.—Any funds, serv-
ices, or equipment accepted by the Secretary under 
this subsection— 
‘‘(A) may be used only for the objectives 
specified in this section in accordance with terms 
of use set forth in the contract or other agreement 
entered into under this subsection; and 
‘‘(B) shall be managed by the Secretary in 
accordance with regulations of the Department of 
Defense. 
‘‘(3) REQUIREMENTS WITH RESPECT TO AGREE-
MENTS.—A contract or other agreement entered into 
under this subsection shall address terms of use, own-
ership, and disposition of the funds, services, or
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† HR 1540 EAS 
equipment contributed pursuant to the contract or 
other agreement. 
‘‘(d) DEFENSE COOPERATION SPACE LAUNCH AC-
COUNT.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a special account 
to be known as the ‘Defense Cooperation Space 
Launch Account’. 
‘‘(2) CREDITING OF FUNDS.—Funds received by 
the Secretary of Defense under subsection (c) shall be 
credited to the Defense Cooperation Space Launch Ac-
count and shall be available until expended without 
further authorization or appropriation only for the 
objectives specified in this section. 
‘‘(e) ANNUAL REPORT.—Not later than January 31 of 
each year, the Secretary of Defense shall submit to the con-
gressional defense committees a report on the funds, services, 
and equipment accepted and used by the Secretary under 
this section during the previous fiscal year. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COVERED ENTITY.—The term ‘covered enti-
ty’ means a non-Federal entity that— 
‘‘(A) is organized under the laws of the 
United States or of any jurisdiction within the 
United States; and
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‘‘(B) is engaged in commercial space activi-
ties. 
‘‘(2) LAUNCH SUPPORT FACILITIES.—The term 
‘launch support facilities’ has the meaning given that 
term in section 50501(7) of title 51. 
‘‘(3) SPACE RECOVERY SUPPORT FACILITIES.— 
The term ‘space recovery support facilities’ has the 
meaning given that term in section 50501(11) of title 
51. 
‘‘(4) 
SPACE
TRANSPORTATION
INFRASTRUC-
TURE.—The term ‘space transportation infrastruc-
ture’ has the meaning given that term in section 
50501(12) of title 51.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘2275. Commercial space launch cooperation.’’. 
(c) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations relating to the activities of the Depart-
ment of Defense under section 2275 of title 10, United 
States Code, as added by subsection (a).
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† HR 1540 EAS 
SEC. 912. AUTHORITY TO DESIGNATE INCREMENTS OR 
BLOCKS OF SPACE VEHICLES AS MAJOR SUB-
PROGRAMS SUBJECT TO ACQUISITION RE-
PORTING REQUIREMENTS. 
Section 2430a(a)(1) of title 10, United States Code, 
is amended— 
(1) by inserting ‘‘(A)’’ before ‘‘If the Secretary of 
Defense determines’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) If the Secretary of Defense determines that a 
major defense acquisition program to purchase space vehi-
cles requires the delivery of space vehicles in two or more 
increments or blocks, the Secretary may designate each such 
increment or block as a major subprogram for the purposes 
of acquisition reporting under this chapter.’’. 
SEC. 913. REVIEW TO IDENTIFY INTERFERENCE WITH NA-
TIONAL SECURITY GLOBAL POSITIONING SYS-
TEM RECEIVERS BY COMMERCIAL COMMU-
NICATIONS SERVICES. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) the reliable provision of precision navigation 
and timing signals by Global Positioning System sat-
ellites owned and operated by the Department of De-
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† HR 1540 EAS 
fense is critical to the economy, public health and 
safety, and the national security of the United States; 
(2) any interference with the signals of the Glob-
al Positioning System satellites or the various receiv-
ers that use those signals would be extraordinarily 
disruptive; and 
(3) the Federal Communications Commission 
should ensure that the signals of Global Positioning 
System satellites can be received without interruption 
or interference. 
(b) REVIEW.—Not later than 90 days after the date 
of the enactment of this Act, and every 90 days thereafter 
until the termination date described in subsection (d), the 
Secretary of Defense shall conduct a review— 
(1) to assess the ability of national security 
Global Positioning System receivers to receive the sig-
nals of Global Positioning System satellites without 
interruption or interference; and 
(2) to determine if commercial communications 
services are causing or will cause widespread or 
harmful interference with national security Global 
Positioning System receivers. 
(c) NOTIFICATION TO CONGRESS.— 
(1) IN GENERAL.—If the Secretary determines 
under subsection (b)(2) that commercial communica-
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† HR 1540 EAS 
tions services are causing or will cause widespread or 
harmful interference with national security Global 
Positioning System receivers, the Secretary shall 
promptly submit to the congressional defense commit-
tees a report notifying those committees of the inter-
ference. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include the following: 
(A) A list and description of the national 
security Global Positioning System receivers that 
are being or are expected to be interfered with by 
commercial communications services. 
(B) A description of the source of, and the 
entity causing or expected to cause, the inter-
ference with those receivers. 
(C) A description of the manner in which 
that source or entity is causing or is expected to 
cause the interference. 
(D) A description of the magnitude of harm 
caused or expected to be caused by the inter-
ference. 
(E) A description of the duration of and the 
conditions and circumstances under which the 
interference is occurring or is expected to occur.
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† HR 1540 EAS 
(F) A description of the impact of the inter-
ference on the national security interests of the 
United States. 
(G) A description of the plans of the Sec-
retary to address, alleviate, or mitigate the inter-
ference or the harm caused or expected to be 
caused by the interference. 
(d) TERMINATION DATE DESCRIBED.—The require-
ment that the Secretary conduct the review under subsection 
(b) and submit the report under subsection (c) shall termi-
nate on the earlier of— 
(1) the date that is 2 years after the date of the 
enactment of this Act; or 
(2) the date on which the Secretary— 
(A) determines that there is no widespread 
or harmful interference with national security 
Global Positioning System receivers by commer-
cial communication services; and 
(B) notifies the congressional defense com-
mittees of that determination.
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Subtitle C—Intelligence Matters 
SEC. 921. EXPANSION OF AUTHORITY FOR EXCHANGES OF 
MAPPING, CHARTING, AND GEODETIC DATA 
TO INCLUDE NONGOVERNMENTAL ORGANIZA-
TIONS AND ACADEMIC INSTITUTIONS. 
(a) BROADENING OF AUTHORITY.—Section 454 of title 
10, United States Code, is amended— 
(1) by inserting ‘‘(a) FOREIGN COUNTRIES AND 
INTERNATIONAL ORGANIZATIONS.—’’ before ‘‘The Sec-
retary of Defense’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) NONGOVERNMENTAL ORGANIZATIONS AND ACA-
DEMIC INSTITUTIONS.—The Secretary may authorize the 
National Geospatial-Intelligence Agency to exchange or fur-
nish mapping, charting, and geodetic data, supplies, and 
services relating to areas outside of the United States to 
a nongovernmental organization or an academic institution 
engaged in geospatial information research or production 
of such areas pursuant to an agreement for the production 
or exchange of such data.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such sec-
tion is amended to read as follows:
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† HR 1540 EAS 
‘‘§ 454. Exchange of mapping, charting, and geodetic 
data with foreign countries, international 
organizations, nongovernmental organi-
zations, and academic institutions’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of subchapter II of chapter 22 of 
such title is amended by striking the item relating to 
section 454 and inserting the following new item: 
‘‘454. Exchange of mapping, charting, and geodetic data with foreign countries, 
international organizations, nongovernmental organizations, 
and academic institutions.’’. 
SEC. 922. FACILITIES FOR INTELLIGENCE COLLECTION OR 
SPECIAL OPERATIONS ACTIVITIES ABROAD. 
Section 2682 of title 10, United States Code, is amend-
ed— 
(1) by inserting ‘‘(a) MAINTENANCE AND RE-
PAIR.—’’ before ‘‘The maintenance and repair’’; 
(2) by designating the second sentence as sub-
section (b), realigning such subsection so as to be in-
dented two ems from the left margin, and inserting 
‘‘JURISDICTION.—’’ before ‘‘A real property facility’’; 
and 
(3) by adding at the end the following new sub-
section: 
‘‘(c) FACILITIES FOR INTELLIGENCE COLLECTION OR 
FOR SPECIAL OPERATIONS ABROAD.—The Secretary of De-
fense may maintain and repair, and may exercise jurisdic-
379 
† HR 1540 EAS 
tion over, a real property facility if necessary to provide 
security for authorized intelligence collection or special op-
erations activities abroad undertaken by the Department of 
Defense.’’. 
SEC. 923. OZONE WIDGET FRAMEWORK. 
(a) MECHANISM FOR INTERNET PUBLICATION OF IN-
FORMATION FOR DEVELOPMENT OF ANALYSIS TOOLS AND 
APPLICATIONS.—The Director of the Defense Information 
Systems Agency shall implement a mechanism to publish 
and maintain on the public Internet the Application Pro-
gramming Interface specifications, a developer’s toolkit, 
source code, and such other information on, and resources 
for, the Ozone Widget Framework (OWF) as the Director 
considers necessary to permit individuals and companies 
to develop, integrate, and test analysis tools and applica-
tions for use by the Department of Defense and the elements 
of the intelligence community. 
(b) PROCESS FOR VOLUNTARY CONTRIBUTION OF IM-
PROVEMENTS BY PRIVATE SECTOR.—In addition to the re-
quirement under subsection (a), the Director shall also es-
tablish a process by which private individuals and compa-
nies may voluntarily contribute the following: 
(1) Improvements to the source code and docu-
mentation for the Ozone Widget Framework.
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† HR 1540 EAS 
(2) Alternative or compatible implementations of 
the published Application Programming Interface 
specifications for the Framework. 
(c) ENCOURAGEMENT OF USE AND DEVELOPMENT.— 
The Director shall, whenever practicable, encourage and fos-
ter the use, support, development, and enhancement of the 
Ozone Widget Framework by the computer industry and 
commercial information technology vendors, including the 
development of tools that are compatible with the Frame-
work. 
SEC. 924. PLAN FOR INCORPORATION OF ENTERPRISE 
QUERY AND CORRELATION CAPABILITY INTO 
THE DEFENSE INTELLIGENCE INFORMATION 
ENTERPRISE. 
(a) PLAN REQUIRED.— 
(1) IN GENERAL.—The Under Secretary of De-
fense for Intelligence shall develop a plan for the in-
corporation of an enterprise query and correlation ca-
pability into the Defense Intelligence Information En-
terprise (D2IE). 
(2) ELEMENTS.—The plan required by para-
graph (1) shall— 
(A) include an assessment of all the current 
and planned advanced query and correlation 
systems which operate on large centralized data-
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† HR 1540 EAS 
bases that are deployed or to be deployed in ele-
ments of the Defense Intelligence Information 
Enterprise; and 
(B) determine where duplication can be 
eliminated, how use of these systems can be ex-
panded, whether these systems can be operated 
collaboratively, and whether they can and should 
be integrated with the enterprisewide query and 
correlation capability required pursuant to 
paragraph (1). 
(b) PILOT PROGRAM.— 
(1) IN
GENERAL.—The Under Secretary shall 
conduct 
a 
pilot 
program 
to 
demonstrate 
an 
enterprisewide query and correlation capability 
through the Defense Intelligence Information Enter-
prise program. 
(2) PURPOSE.—The purpose of the pilot program 
shall be to demonstrate the capability of an 
enterprisewide query and correlation system to 
achieve the following: 
(A) To conduct complex, simultaneous que-
ries by a large number of users and analysts 
across numerous, large distributed data stores 
with response times measured in seconds.
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(B) To be scaled up to operate effectively on 
all the data holdings of the Defense Intelligence 
Information Enterprise. 
(C) To operate across multiple levels of se-
curity with data guards. 
(D) 
To 
operate 
effectively 
on 
both 
unstructured data and structured data. 
(E) To extract entities, resolve them, and 
(as appropriate) mask them to protect sources 
and methods, privacy, or both. 
(F) To control access to data by means of 
on-line electronic user credentials, profiles, and 
authentication. 
(c) REPORT.—Not later than November 1, 2012, the 
Under Secretary shall submit to the appropriate committees 
of Congress a report on the actions undertaken by the Under 
Secretary to carry out this section. The report shall set forth 
the plan developed under subsection (a) and a description 
and assessment of the pilot program conducted under sub-
section (b). 
(d) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means—
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† HR 1540 EAS 
(1) the Committee on Armed Services, the Com-
mittee on Appropriations, and the Select Committee 
on Intelligence of the Senate; and 
(2) the Committee on Armed Services, the Com-
mittee on Appropriations, and the Permanent Select 
Committee on Intelligence of the House of Representa-
tives. 
Subtitle D—Cybersecurity Matters 
SEC. 931. STRATEGY TO ACQUIRE CAPABILITIES TO DETECT 
PREVIOUSLY UNKNOWN CYBER ATTACKS. 
(a) IN GENERAL.—The Secretary of Defense shall de-
velop and implement a plan to augment the cybersecurity 
strategy of the Department of Defense through the acquisi-
tion of advanced capabilities to discover and isolate pene-
trations and attacks that were previously unknown and for 
which signatures have not been developed for incorporation 
into computer intrusion detection and prevention systems 
and anti-virus software systems. 
(b) CAPABILITIES.— 
(1) NATURE OF CAPABILITIES.—The capabilities 
to be acquired under the plan required by subsection 
(a) shall— 
(A) be adequate to enable well-trained ana-
lysts to discover the sophisticated attacks con-
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† HR 1540 EAS 
ducted by nation-state adversaries that are cat-
egorized as ‘‘advanced persistent threats’’; 
(B) be appropriate for— 
(i) endpoints or hosts; 
(ii) network-level gateways operated by 
the Defense Information Systems Agency 
where the Department of Defense network 
connects to the public Internet; and 
(iii) global networks owned and oper-
ated by private sector Tier 1 Internet Serv-
ice Providers; 
(C) at the endpoints or hosts, add new dis-
covery capabilities to the Host-Based Security 
System of the Department, including capabilities 
such as— 
(i) automatic blocking of unauthorized 
software programs and accepting approved 
and vetted programs; 
(ii) constant monitoring of all key 
computer attributes, settings, and oper-
ations (such as registry keys, operations 
running in memory, security settings, mem-
ory tables, event logs, and files); and 
(iii) automatic baselining and remedi-
ation of altered computer settings and files;
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(D) at the network-level gateways and inter-
nal 
network 
peering 
points, 
include 
the 
sustainment and enhancement of a system that 
is based on full-packet capture, session recon-
struction, extended storage, and advanced ana-
lytic tools, by— 
(i) increasing the number and skill 
level of the analysts assigned to query stored 
data, whether by contracting for security 
services, hiring and training Government 
personnel, or both; and 
(ii) increasing the capacity of the sys-
tem to handle the rates for data flow 
through the gateways and the storage re-
quirements specified by the United States 
Cyber Command; and 
(E) include the behavior-based threat detec-
tion capabilities of Tier 1 Internet Service Pro-
viders and other companies that operate on the 
global Internet. 
(2) SOURCE OF CAPABILITIES.—The capabilities 
to be acquired shall, to the maximum extent prac-
ticable, be acquired from commercial sources. In mak-
ing decisions on the procurement of such capabilities 
from among competing commercial and Government
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† HR 1540 EAS 
providers, the Secretary shall take into consideration 
the needs of other departments and agencies of the 
Federal Government, State and local governments, 
and critical infrastructure owned and operated by the 
private sector for unclassified, affordable, and sus-
tainable commercial solutions. 
(c) INTEGRATION AND MANAGEMENT OF DISCOVERY 
CAPABILITIES.—The plan required by subsection (a) shall 
include mechanisms for improving the standardization, or-
ganization, and management of the security information 
and event management systems that are widely deployed 
across the Department of Defense to improve the ability of 
United States Cyber Command to understand and control 
the status and condition of Department networks, including 
mechanisms to ensure that the security information and 
event management systems of the Department receive and 
correlate data collected and analyses conducted at the host 
or endpoint, at the network gateways, and by Internet Serv-
ice Providers in order to discover new attacks reliably and 
rapidly. 
(d) PROVISION FOR CAPABILITY DEMONSTRATIONS.— 
The plan required by subsection (a) shall provide for the 
conduct of demonstrations, pilot projects, and other tests on 
cyber test ranges and operational networks in order to de-
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† HR 1540 EAS 
termine and verify that the capabilities to be acquired pur-
suant to the plan are effective, practical, and affordable. 
(e) REPORT.—Not later than April 1, 2012, the Sec-
retary shall submit to the congressional defense committees 
a report on the plan required by subsection (a). The report 
shall set forth the plan and include a comprehensive de-
scription of the actions being undertaken by the Department 
to implement the plan. 
SEC. 932. PROGRAM IN SUPPORT OF DEPARTMENT OF DE-
FENSE POLICY ON SUSTAINING AND EXPAND-
ING INFORMATION SHARING. 
(a) PROGRAM REQUIRED.—The Secretary of Defense 
shall carry out a program to support the policy of the De-
partment of Defense on sustaining and expanding informa-
tion sharing which program shall provide for the adoption 
and improvement of technical and procedural capabilities 
to detect and prevent personnel without authorization from 
acquiring and exporting information from classified net-
works. 
(b) CAPABILITIES.—Options for the technical and pro-
cedural capabilities to be adopted and improved under the 
program required by subsection (a) shall include, but not 
be limited to, capabilities for the following: 
(1) Disabling the removable media ports of com-
puters, whether physically or electronically.
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(2) In the case of computers authorized to write 
to removable media, requiring systems administrator 
approval for transfers of data. 
(3) Electronic monitoring and reporting of com-
pliance with policies on downloading of information 
to removable media, and of attempts to circumvent 
such policies. 
(4) Using public-key infrastructure-based iden-
tity authentication and user profiles to control infor-
mation access and use. 
(5) Electronic auditing and reporting of user ac-
tivities to deter and detect unauthorized activities. 
(6) Using data-loss-prevention and data-rights 
management technology to prevent the unauthorized 
export of information from a network or to render the 
information unusable in the event of unauthorized ex-
port. 
(7) Appropriately implementing and integrating 
such capabilities to enable efficient management and 
operations, and effective protection of information, 
without impairing the work of analysts and users of 
networks. 
(c) PROGRAM WITHIN BROADER APPROACH TO CY-
BERSECURITY CHALLENGES.—In developing the program 
required by subsection (a), the Secretary—
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(1) shall take into account that the prevention of 
security breaches from personnel operating from in-
side Department networks substantially overlaps with 
the prevention of cyber attacks (including prevention 
of theft of information and intellectual property and 
the 
destruction 
of 
information 
and 
network 
functionality); and 
(2) should make decisions about the utility and 
affordability of capabilities under subsection (b) for 
purposes of the program in full contemplation of the 
broad range of cybersecurity challenges facing the De-
partment. 
(d) BUDGET MATTERS.—The budget justification doc-
uments for the budget of the President for each fiscal year 
after fiscal year 2012, as submitted to Congress pursuant 
to section 1105 of title 31, United States Code, shall set 
forth information on the program required by subsection 
(a), including the following: 
(1) The amount requested for such fiscal year for 
the program. 
(2) A description of the objectives and scope of 
the program for such fiscal year, including manage-
ment objectives and program milestones and perform-
ance metrics for such fiscal year.
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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 
2012 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 the 
Secretary may transfer under the authority of this 
section may not exceed $5,000,000,000. 
(3) EXCEPTION FOR TRANSFERS BETWEEN MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of 
funds between military personnel authorizations 
under title IV shall not be counted toward the dollar 
limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by this sec-
tion to transfer authorizations—
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(1) may only be used to provide authority for 
items that have a higher priority than the items from 
which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
SEC. 1002. DEFENSE BUSINESS SYSTEMS. 
(a) AVAILABILITY OF FUNDS FOR DEFENSE BUSINESS 
SYSTEM PROGRAMS.— 
(1) CONDITIONS
FOR
OBLIGATION.—Subsection 
(a) of section 2222 of title 10, United States Code, is 
amended to read as follows: 
‘‘(a) CONDITIONS FOR OBLIGATION OF FUNDS FOR 
COVERED DEFENSE BUSINESS SYSTEM PROGRAMS.—Ap-
propriated and nonappropriated funds available to the De-
partment of Defense may not be obligated for a covered de-
fense business system program unless—
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‘‘(1) the appropriate chief management officer 
for the defense business system program has— 
‘‘(A) determined that— 
‘‘(i) the defense business system pro-
gram is in compliance with the enterprise 
architecture developed under subsection (c); 
and 
‘‘(ii) appropriate business process re-
engineering efforts have been undertaken to 
ensure that— 
‘‘(I) the business process to be 
supported by the defense business sys-
tem program will be as streamlined 
and efficient as practicable; and 
‘‘(II) the need to tailor commer-
cial-off-the-shelf systems to meet unique 
requirements or incorporate unique 
interfaces has been eliminated or re-
duced to the maximum extent prac-
ticable; or 
‘‘(B) waived the requirement in subpara-
graph (A) on the basis of a determination by the 
chief management officer that— 
‘‘(i) the defense business system pro-
gram is necessary to achieve a critical na-
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tional security capability or address a crit-
ical requirement in an area such as safety 
or security; or 
‘‘(ii) the defense business system pro-
gram is necessary to prevent a significant 
adverse effect on a project that is needed to 
achieve an essential capability, taking into 
consideration the alternative solutions for 
preventing such adverse effect; 
‘‘(2) the determination or waiver of the chief 
management officer under paragraph (1) has been re-
viewed, approved, and certified by an appropriate in-
vestment review board established under subsection 
(g); and 
‘‘(3) the certification by the investment review 
board under paragraph (2) has been approved by the 
Defense Business Systems Management Committee.’’. 
(2) TREATMENT
OF
CERTAIN
OBLIGATIONS
OF 
FUNDS.—Subsection (b) of such section is amended by 
striking ‘‘business system’’ and all that follows 
through ‘‘such subsection’’ and inserting ‘‘covered de-
fense business system program that has not been cer-
tified or approved in accordance with subsection (a)’’. 
(b) ENTERPRISE ARCHITECTURE.—
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(1) IN GENERAL.—Subsection (c) of such section 
is amended— 
(A) in paragraph (1), by inserting ‘‘, 
known as the defense business enterprise archi-
tecture,’’ after ‘‘an enterprise architecture’’; and 
(B) in paragraph (2), by striking ‘‘the en-
terprise architecture for defense business sys-
tems’’ and inserting ‘‘the defense business enter-
prise architecture’’. 
(2) COMPOSITION.—Subsection (d) of such sec-
tion is amended— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘all’’ and inserting ‘‘applicable law, includ-
ing’’; and 
(ii) in subparagraph (B), by inserting 
‘‘business and’’ before ‘‘financial informa-
tion’’; 
(B) in paragraph (2), by inserting ‘‘per-
formance measures,’’ after ‘‘data standards,’’; 
and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) A target systems environment, aligned to 
the business enterprise architecture, for each of the
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major business processes conducted by the Department 
of Defense, as determined by the Chief Management 
Officer of the Department of Defense.’’. 
(3) TRANSITION PLAN.—Subsection (e) of such 
section is amended— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘The acquisition strategy for’’ and inserting 
‘‘A listing of the’’; and 
(ii) in subparagraph (B)— 
(I) by striking ‘‘defense business 
systems as of December 2, 2002’’ and 
inserting ‘‘existing defense business 
systems’’; and 
(II) by striking the comma before 
‘‘that will’’; and 
(B) in paragraph (2), by striking ‘‘Each of 
the strategies under paragraph (1)’’ and insert-
ing ‘‘For each system listed under paragraph 
(1), the transition plan’’. 
(c) RESPONSIBLE SENIOR OFFICIALS
AND CHIEF 
MANAGEMENT OFFICERS.—Subsection (f) of such section is 
amended—
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(1) by striking all the matter preceding subpara-
graph (A) of paragraph (1) and inserting the fol-
lowing: 
‘‘(f) DESIGNATION OF SENIOR OFFICIALS AND CHIEF 
MANAGEMENT OFFICERS.—(1) For purposes of subsection 
(g), the appropriate senior Department of Defense official 
for the functions and activities supported by a covered de-
fense business system is as follows:’’; 
(2) in such paragraph (1), as so amended— 
(A) by striking ‘‘shall be responsible and ac-
countable for’’ each place it appears and insert-
ing ‘‘, in the case of’’; 
(B) in subparagraph (D), by striking ‘‘As-
sistant Secretary of Defense for Networks and In-
formation Integration and the’’; and 
(C) in subparagraph (E), by striking ‘‘Dep-
uty Secretary of Defense’’ and all that follows 
through ‘‘responsible for’’ and inserting ‘‘Deputy 
Chief Management Officer of the Department of 
Defense, in the case of’’; and 
(3) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A)— 
(i) by striking ‘‘subsection (a)’’ and in-
serting ‘‘subsections (a) and (g)’’; and
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(ii) by striking ‘‘modernization’’ and 
inserting ‘‘program’’; 
(B) in subparagraph (D), by inserting ‘‘the 
Director of such Defense Agency, unless otherwise 
approved by’’ before ‘‘the Deputy Chief Manage-
ment Officer’’; and 
(C) in subparagraph (E), by inserting ‘‘the 
designee of’’ before ‘‘the Deputy Chief Manage-
ment Officer’’. 
(d) INVESTMENT REVIEW.—Subsection (g) of such sec-
tion is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph (1): 
‘‘(1) The Secretary of Defense, acting through the Chief 
Management Officer of the Department of Defense, shall es-
tablish, by not later than March 15, 2012, an investment 
review board and investment management process, con-
sistent with section 11312 of title 40, to review the plan-
ning, design, acquisition, development, deployment, oper-
ation, maintenance, modernization, and project cost bene-
fits and risks of covered defense business system programs. 
The investment review process so established shall specifi-
cally address the requirements of subsection (a).’’; and 
(2) in paragraph (2)—
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(A) in the matter preceding subparagraph 
(A), by striking ‘‘systems’’ and inserting ‘‘system 
programs’’; 
(B) in subparagraph (A), by striking ‘‘de-
fense business system’’ and all that follows 
through ‘‘as an investment’’ and inserting ‘‘cov-
ered defense business system program, in accord-
ance with the requirements of subsection (a),’’; 
(C) in subparagraph (B), by striking ‘‘every 
defense business system’’ and all that follows and 
inserting ‘‘covered defense business system pro-
grams, grouped in portfolios of defense business 
systems;’’; 
(D) by striking subparagraph (C) and in-
serting the following new subparagraph (C): 
‘‘(C) Representation on each investment review 
board by appropriate officials from among the Office 
of the Secretary of Defense, the armed forces, the com-
batant commands, the Joint Chiefs of Staff, and the 
Defense Agencies, including representatives of each of 
the following: 
‘‘(i) The appropriate chief management offi-
cer for the defense business system under review. 
‘‘(ii) The appropriate senior Department of 
Defense official for the functions and activities
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† HR 1540 EAS 
supported by the defense business system under 
review. 
‘‘(iii) The Chief Information Officer of the 
Department of Defense.’’; and 
(E) in subparagraph (D), by striking ‘‘in-
vestments’’ and inserting ‘‘programs’’. 
(e) BUDGET INFORMATION.—Subsection (h) of such 
section is amended— 
(1) in paragraph (1), by inserting ‘‘program’’ 
after ‘‘defense business system’’; 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘such system’’ and inserting 
‘‘such program’’; and 
(B) in subparagraph (A), by striking ‘‘the 
system’’ and inserting ‘‘the system covered by 
such program’’; 
(3) by striking paragraph (3) and inserting the 
following new paragraph (3): 
‘‘(3) For each such program, an identification of 
the appropriate chief management officer and senior 
Department of Defense official designated under sub-
section (f).’’; and 
(4) in paragraph (4), by striking ‘‘such system’’ 
both places it appears and inserting ‘‘such program’’.
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† HR 1540 EAS 
(f) REPORTS TO CONGRESS.—Subsection (i) of such 
section is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘2005 through 2013’’ and 
inserting ‘‘2012 through 2016’’; 
(B) by striking the second sentence; and 
(C) by striking ‘‘Subsequent reports’’ and 
inserting ‘‘Each report’’; 
(2) by striking ‘‘modernizations’’ each place it 
appears in paragraphs (1) and (2) and inserting 
‘‘programs’’; 
(3) by striking paragraph (3) and inserting the 
following new paragraph (3): 
‘‘(3) identify any covered defense business system 
program for which a waiver was granted under sub-
section (a)(1)(B) during the preceding fiscal year, 
and set forth the reasons for each such waver; and’’; 
and 
(4) in paragraph (4), by striking ‘‘moderniza-
tion efforts’’ and inserting ‘‘programs’’. 
(g) DEFINITIONS.—Subsection (j) of such section is 
amended— 
(1) by striking paragraphs (1) and (3);
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† HR 1540 EAS 
(2) by redesignating paragraphs (2), (4), (5), 
and (6) as paragraphs (1), (3), (4), and (5), respec-
tively; and 
(3) by inserting after paragraph (1), as redesig-
nated by paragraph (2) of this subsection, the fol-
lowing new paragraph (2): 
‘‘(2) The term ‘covered defense business system 
program’ means any program as follows: 
‘‘(A) A program for the acquisition or devel-
opment of a new defense business system with a 
total cost in excess of $1,000,000. 
‘‘(B) A program for any significant modi-
fication or enhancement of an existing defense 
business system with a total cost in excess of 
$1,000,000. 
‘‘(C) A program for the operation and 
maintenance of an existing defense business sys-
tem, if the estimated cost of operation and main-
tenance of such system exceeds $1,000,000 over 
the period of the current future-years defense 
program submitted to Congress under section 
221 of this title.’’.
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† HR 1540 EAS 
SEC. 1003. MODIFICATION OF AUTHORITIES ON CERTIFI-
CATION AND CREDENTIAL STANDARDS FOR 
FINANCIAL MANAGEMENT POSITIONS IN THE 
DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 1599d of title 10, United 
States Code, is amended to read as follows: 
‘‘§ 1599d. Financial management positions: authority 
to prescribe professional certification and 
credential standards 
‘‘(a) AUTHORITY TO PRESCRIBE PROFESSIONAL CER-
TIFICATION AND CREDENTIAL STANDARDS.—The Secretary 
of Defense may prescribe professional certification and cre-
dential standards for financial management positions with-
in the Department of Defense, including requirements for 
formal education and requirements for certifications that 
individuals have met predetermined qualifications set by an 
agency of Government or by an industry or professional 
group. Any such professional certification or credential 
standard shall be prescribed as a Department regulation. 
‘‘(b) WAIVER.—The Secretary may waive any stand-
ard prescribed under subsection (a) whenever the Secretary 
determines such a waiver to be appropriate. 
‘‘(c) APPLICABILITY.—(1) Except as provided in para-
graph (2), the Secretary may, in the Secretary’s discre-
tion—
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† HR 1540 EAS 
‘‘(A) require that a standard prescribed under 
subsection (a) apply immediately to all personnel 
holding financial management positions designated 
by the Secretary; or 
‘‘(B) delay the imposition of such a standard for 
a reasonable period to permit persons holding finan-
cial management positions so designated time to com-
ply. 
‘‘(2) A formal education requirement prescribed under 
subsection (a) shall not apply to any person employed by 
the Department in a financial management position before 
the standard is prescribed. 
‘‘(d) DISCHARGE OF AUTHORITY.—The Secretary shall 
prescribe any professional certification or credential stand-
ards under subsection (a) through the Under Secretary of 
Defense (Comptroller), in consultation with the Under Sec-
retary of Defense for Personnel and Readiness. 
‘‘(e) REPORTS.—Not later than one year after the effec-
tive date of any regulations prescribed under subsection (a), 
or any significant modification of such regulations, the Sec-
retary shall, in conjunction with the Director of the Office 
of Personnel Management, submit to Congress a report set-
ting forth the plans of the Secretary to provide training 
to appropriate Department personnel to meet any new pro-
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† HR 1540 EAS 
fessional certification or credential standard under such 
regulations or modification. 
‘‘(f) FINANCIAL MANAGEMENT POSITION DEFINED.— 
In this section, the term ‘financial management position’ 
means a position or group of positions (including civilian 
and military positions), as designated by the Secretary for 
purposes of this section, that perform, supervise, or manage 
work of a fiscal, financial management, accounting, audit-
ing, cost or budgetary nature, or that require the perform-
ance of financial management related work.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 81 of such title is amended by 
striking the item relating to section 1599d and inserting 
the following new item: 
‘‘1599d. Financial management positions: authority to prescribe professional cer-
tification and credential standards.’’. 
SEC. 1004. DEPOSIT OF REIMBURSED FUNDS UNDER RECIP-
ROCAL FIRE PROTECTION AGREEMENTS. 
(a) IN GENERAL.—Section 5(b) of the Act of May 27, 
1955 (chapter 105; 69 Stat. 67; 42 U.S.C. 1856d(b)), is 
amended to read as follows: 
‘‘(b) Notwithstanding subsection (a), all sums received 
as reimbursements for costs incurred by any Department 
of Defense activity for fire protection rendered pursuant to 
this Act shall be credited to the same appropriation or fund 
from which the expenses were paid or, if the period of avail-
405 
† HR 1540 EAS 
ability for obligation for that appropriation has expired, 
to the appropriation or fund that is currently available to 
the activity for the same purpose. Amounts so credited shall 
be subject to the same provisions and restrictions as the ap-
propriation or account to which credited.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to reimbursements for 
expenditures of funds appropriated after the date of the en-
actment of this Act. 
SEC. 1005. AUDIT READINESS OF FINANCIAL STATEMENTS 
OF DEPARTMENT OF DEFENSE. 
Section 1003(a)(2)(A)(ii) of the National Defense Au-
thorization Act for Fiscal Year 2010 (Public Law 111–84; 
123 Stat. 2440; 10 U.S.C. 2222 note) is amended by insert-
ing ‘‘, and that a complete and validated full statement of 
budget resources is ready by not later than September 30, 
2014’’ after ‘‘validated as ready for audit by not later than 
September 30, 2017’’. 
SEC. 1006. PLAN TO ENSURE AUDIT READINESS OF STATE-
MENTS OF BUDGETARY RESOURCES. 
(a) PLANNING REQUIREMENT.—The report to be issued 
pursuant to section 1003(b) of the National Defense Author-
ization Act for 2010 (Public Law 111–84; 123 Stat. 2440; 
10 U.S.C. 2222 note) and provided by not later than May 
15, 2012, shall include a plan, including interim objectives
406 
† HR 1540 EAS 
and a schedule of milestones for each military department 
and for the defense agencies, to ensure that the statement 
of budgetary resources of the Department of Defense meets 
the goal established by the Secretary of Defense of being 
validated for audit by not later than September 30, 2014. 
Consistent with the requirements of such section, the plan 
shall ensure that the actions to be taken are systemically 
tied to process and control improvements and business sys-
tems modernization efforts necessary for the Department to 
prepare timely, reliable, and complete financial manage-
ment information on a repeatable basis. 
(b) SEMIANNUAL UPDATES.—The reports to be issued 
pursuant to such section after the report described in sub-
section (a) shall update the plan required by such subsection 
and explain how the Department has progressed toward 
meeting the milestones established in the plan. 
Subtitle B—Counter-Drug Activities 
SEC. 1011. FIVE-YEAR EXTENSION AND MODIFICATION OF 
AUTHORITY OF DEPARTMENT OF DEFENSE 
TO 
PROVIDE 
ADDITIONAL 
SUPPORT 
FOR 
COUNTERDRUG ACTIVITIES OF OTHER GOV-
ERNMENTAL AGENCIES. 
(a) FIVE-YEAR EXTENSION.—Subsection (a) of section 
1004 of the National Defense Authorization Act for Fiscal 
Year 1991 (10 U.S.C. 374 note) is amended by striking
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† HR 1540 EAS 
‘‘During fiscal years 2002 through 2011’’ and inserting 
‘‘Until September 30, 2016’’. 
(b) COVERAGE OF TRIBAL LAW ENFORCEMENT AGEN-
CIES.— 
(1) IN
GENERAL.—Such section is further 
amended— 
(A) in subsection (a)— 
(i) in the matter preceding paragraph 
(1), by inserting ‘‘tribal,’’ after ‘‘local,’’; 
and 
(ii) in paragraph (2), by striking 
‘‘State or local’’ both places it appears and 
insert ‘‘State, local, or tribal’’; and 
(B) in subsection (b)— 
(i) in paragraph (1), by striking 
‘‘State or local’’ and inserting ‘‘State, local, 
or tribal’’; 
(ii) in paragraph (4), by striking 
‘‘State, or local’’ and inserting ‘‘State, local, 
or tribal’’; and 
(iii) in paragraph (5), by striking 
‘‘State and local’’ and inserting ‘‘State, 
local, and tribal’’.
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† HR 1540 EAS 
(2) TRIBAL GOVERNMENT DEFINED.—Such sec-
tion is further amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) DEFINITIONS RELATING
TO TRIBAL GOVERN-
MENTS.—In this section: 
‘‘(1) The term ‘Indian tribe’ has the meaning 
given the term in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 
450b). 
‘‘(2) The term ‘tribal government’ means the gov-
erning body of an Indian tribe.’’. 
SEC. 1012. FIVE-YEAR EXTENSION AND EXPANSION OF AU-
THORITY TO PROVIDE ADDITIONAL SUPPORT 
FOR COUNTER-DRUG ACTIVITIES OF CERTAIN 
FOREIGN GOVERNMENTS. 
(a) IN GENERAL.—Subsection (a)(2) of section 1033 
of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105–85; 111 Stat. 1881), as most recently 
amended by section 1014(a) of the Ike Skelton National De-
fense Authorization Act for Fiscal Year 2011 (Public Law 
111–383; 124 Stat. 4337), is further amended by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
(b) MAXIMUM AMOUNT OF SUPPORT.—Section (e)(2) 
of such section, as so amended, is further amended—
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† HR 1540 EAS 
(1) by striking ‘‘$75,000,000’’ and inserting 
‘‘$100,000,000’’; and 
(2) by striking ‘‘2012’’ and inserting ‘‘2017’’. 
(c) ADDITIONAL GOVERNMENTS ELIGIBLE TO RE-
CEIVE SUPPORT.—Subsection (b) of such section, as most 
recently amended by section 1024(b) of the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 2009 
(Public Law 110–417; 122 Stat. 4587), is further amended 
by adding at the end the following new paragraphs: 
‘‘(23) Government of Benin. 
‘‘(24) Government of Cape Verde. 
‘‘(25) Government of The Gambia. 
‘‘(26) Government of Ghana. 
‘‘(27) Government of Guinea. 
‘‘(28) Government of Ivory Coast. 
‘‘(29) Government of Jamaica. 
‘‘(30) Government of Liberia. 
‘‘(31) Government of Mauritania. 
‘‘(32) Government of Nicaragua. 
‘‘(33) Government of Nigeria. 
‘‘(34) Government of Sierra Leone. 
‘‘(35) Government of Togo.’’.
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† HR 1540 EAS 
SEC. 1013. REPORTING REQUIREMENT ON EXPENDITURES 
TO SUPPORT FOREIGN COUNTER-DRUG AC-
TIVITIES. 
Section 1022(a) of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (as enacted 
into law by Public Law 106–398; 114 Stat. 1654A–255), 
as most recently amended by the section 1013 of the Ike 
Skelton National Defense Authorization Act for Fiscal Year 
2011 (Public Law 111–383; 124 Stat. 4347), is further 
amended by striking ‘‘February 15, 2011’’ and inserting 
‘‘February 15, 2012’’. 
SEC. 1014. EXTENSION OF AUTHORITY FOR JOINT TASK 
FORCES TO PROVIDE SUPPORT TO LAW EN-
FORCEMENT 
AGENCIES 
CONDUCTING 
COUNTER-TERRORISM ACTIVITIES. 
(a) EXTENSION.—Section 1022(b) of the National De-
fense Authorization Act for Fiscal Year 2004 (10 U.S.C. 
371 note) is amended by striking ‘‘2011’’ and inserting 
‘‘2012’’. 
(b) LIMITATION ON EXERCISE OF AUTHORITY.—The 
authority in section 1022 of the National Defense Author-
ization Act for Fiscal Year 2004, as amended by subsection 
(a), may not be exercised after September 30, 2011, unless 
the Secretary of Defense certifies to Congress, in writing, 
that the Department of Defense is in compliance with the 
provisions of paragraph (2) of subsection (d) of such section,
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† HR 1540 EAS 
as added by section 1012(b) of the Ike Skelton National De-
fense Authorization Act for Fiscal Year 2011 (Public Law 
111–383; 124 Stat. 4346). 
SEC. 1015. EXTENSION OF AUTHORITY TO SUPPORT UNI-
FIED 
COUNTERDRUG 
AND 
COUNTERTER-
RORISM CAMPAIGN IN COLOMBIA. 
Section 1021(a)(1) of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108–375; 118 Stat. 2042), as most recently amended 
by section 1011 of the Ike Skelton National Defense Author-
ization Act for Fiscal Year 2011 (Public Law 111–383; 124 
Stat. 4346), is further amended by striking ‘‘2011’’ and in-
serting ‘‘2012’’. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. LIMITATION ON AVAILABILITY OF FUNDS FOR 
PLACING MARITIME PREPOSITIONING SHIP 
SQUADRONS ON REDUCED OPERATING STA-
TUS. 
No amounts authorized to be appropriated by this Act 
may be obligated or expended to place a Maritime 
Prepositioning Ship squadron, or any component thereof, 
on reduced operating status until the later of the following: 
(1) The date on which the Commandant of the 
Marine Corps submits to the congressional defense
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† HR 1540 EAS 
109–364; 120 Stat. 2374) is amended by striking ‘‘shall re-
quire’’ and all that follows and inserting ‘‘may, notwith-
standing paragraph (1), demilitarize the vessel in prepara-
tion for the transfer.’’. 
SEC. 1023. AUTHORITY TO PROVIDE INFORMATION FOR 
MARITIME SAFETY OF FORCES AND HYDRO-
GRAPHIC SUPPORT. 
(a) AUTHORITY.—Part IV of subtitle C of title 10, 
United States Code, is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 669—MARITIME SAFETY OF 
FORCES 
‘‘Sec. 
‘‘7921. Safety and effectiveness information; hydrographic information. 
‘‘§ 7921. Safety and effectiveness information; hydro-
graphic information 
‘‘(a) SAFETY AND EFFECTIVENESS INFORMATION.—(1) 
The Secretary of the Navy shall maximize the safety and 
effectiveness of all maritime vessels, aircraft, and forces of 
the armed forces by means of— 
‘‘(A) marine data collection; 
‘‘(B) numerical weather and ocean prediction; 
and 
‘‘(C) forecasting of hazardous weather and ocean 
conditions.
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† HR 1540 EAS 
‘‘(2) The Secretary may extend similar support to 
forces of the North Atlantic Treaty Organization, and to 
coalition forces, that are operating with the armed forces. 
‘‘(b) HYDROGRAPHIC INFORMATION.—The Secretary of 
the Navy shall collect, process, and provide to the Director 
of the National Geospatial-Intelligence Agency hydro-
graphic information to support preparation of maps, 
charts, books, and geodetic products by that Agency.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters at 
the beginning of subtitle C of such title, and the table of 
chapters at the beginning of part IV of such subtitle, are 
each amended by inserting after the item relating to chapter 
667 the following new item: 
‘‘669. Maritime Safety of Forces ....................................................................
7921’’. 
SEC. 1024. REPORT ON POLICIES AND PRACTICES OF THE 
NAVY FOR NAMING THE VESSELS OF THE 
NAVY. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress a report on the policies 
and practices of the Navy for naming vessels of the Navy. 
(b) ELEMENTS.—The report required by subsection (a) 
shall set forth the following: 
(1) A description of the current policies and 
practices of the Navy for naming vessels of the Navy.
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(2) A description of the extent to which the poli-
cies and practices described under paragraph (1) vary 
from historical policies and practices of the Navy for 
naming vessels of the Navy, and an explanation for 
such variances (if any). 
(3) An assessment of the feasibility and advis-
ability of establishing fixed policies for the naming of 
one or more classes of vessels of the Navy, and a state-
ment of the policies recommended to apply to each 
class of vessels recommended to be covered by such 
fixed policies if the establishment of such fixed policies 
is considered feasible and advisable. 
(4) Any other matters relating to the policies 
and practices of the Navy for naming vessels of the 
Navy that the Secretary of Defense considers appro-
priate. 
SEC. 1025. ASSESSMENT OF STATIONING OF ADDITIONAL 
DDG–51 CLASS DESTROYERS AT NAVAL STA-
TION MAYPORT, FLORIDA. 
(a) NAVY ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
the Navy shall conduct an analysis of the costs and 
benefits of stationing additional DDG–51 class de-
stroyers at Naval Station Mayport, Florida.
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(2) ELEMENTS.—The analysis required by para-
graph (1) shall include, at a minimum, the following: 
(A) Consideration of the negative effects on 
the ship repair industrial base at Naval Station 
Mayport caused by the retirement of FFG–7 
class frigates and the procurement delays of the 
Littoral Combat Ship, including, in particular, 
the increase in costs (which would be passed on 
to the taxpayer) of reconstituting the ship repair 
industrial base at Naval Station Mayport fol-
lowing the projected drastic decrease in work-
load. 
(B) Updated consideration of life extensions 
of FFG–7 class frigates in light of continued 
delays in deliveries of the Littoral Combat Ship 
deliveries. 
(C) Consideration of the possibility of 
bringing additional surface warships to Naval 
Station Mayport for maintenance with the con-
sequence of spreading the ship repair workload 
appropriately amongst the various public and 
private shipyards and ensuring the long-term 
health of the shipyard in Mayport. 
(b) COMPTROLLER GENERAL OF THE UNITED STATES 
ASSESSMENT.—Not later than 120 days after the submittal
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of the report required by subsection (a), the Comptroller 
General of the United States shall submit to Congress an 
assessment by the Comptroller General of the report, includ-
ing a determination whether or not the report complies with 
applicable best practices. 
SEC. 1026. TRANSFER OF CERTAIN HIGH-SPEED FERRIES TO 
THE NAVY. 
(a) TRANSFER FROM MARAD AUTHORIZED.—The 
Secretary of the Navy may, subject to appropriations, from 
funds available for the Department of Defense for fiscal year 
2012, provide to the Maritime Administration of the De-
partment of Transportation an amount not to exceed 
$35,000,000 for the transfer by the Maritime Administra-
tion to the Department of the Navy of jurisdiction and con-
trol over the vessels as follows: 
(1) M/V HUAKAI. 
(2) M/V ALAKAI. 
(b) USE AS DEPARTMENT OF DEFENSE SEALIFT VES-
SELS.—Each vessel transferred to the Department of the 
Navy under subsection (a) shall be administered as a De-
partment of Defense sealift vessel (as such term is defined 
in section 2218(k)(2) of title 10, United States Code).
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Subtitle D—Detainee Matters 
SEC. 1031. AFFIRMATION OF AUTHORITY OF THE ARMED 
FORCES OF THE UNITED STATES TO DETAIN 
COVERED PERSONS PURSUANT TO THE AU-
THORIZATION FOR USE OF MILITARY FORCE. 
(a) IN GENERAL.—Congress affirms that the authority 
of the President to use all necessary and appropriate force 
pursuant to the Authorization for Use of Military Force 
(Public Law 107–40) includes the authority for the Armed 
Forces of the United States to detain covered persons (as 
defined in subsection (b)) pending disposition under the law 
of war. 
(b) COVERED PERSONS.—A covered person under this 
section is any person as follows: 
(1) A person who planned, authorized, com-
mitted, or aided the terrorist attacks that occurred on 
September 11, 2001, or harbored those responsible for 
those attacks. 
(2) A person who was a part of or substantially 
supported al-Qaeda, the Taliban, or associated forces 
that are engaged in hostilities against the United 
States or its coalition partners, including any person 
who has committed a belligerent act or has directly 
supported such hostilities in aid of such enemy forces.
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(B) a pre-trial agreement entered in a mili-
tary commission case prior to the date of the en-
actment of this Act. 
(b) CERTIFICATION.—A certification described in this 
subsection is a written certification made by the Secretary 
of Defense, with the concurrence of the Secretary of State 
and in consultation with the Director of National Intel-
ligence, that the government of the foreign country or the 
recognized leadership of the foreign entity to which the indi-
vidual detained at Guantanamo is to be transferred— 
(1) is not a designated state sponsor of terrorism 
or a designated foreign terrorist organization; 
(2) maintains control over each detention facility 
in which the individual is to be detained if the indi-
vidual is to be housed in a detention facility; 
(3) is not, as of the date of the certification, fac-
ing a threat that is likely to substantially affect its 
ability to exercise control over the individual; 
(4) has taken or agreed to take effective actions 
to ensure that the individual cannot take action to 
threaten the United States, its citizens, or its allies in 
the future; 
(5) has taken or agreed to take such actions as 
the Secretary of Defense determines are necessary to