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(7) Section 351(h), relating to hazardous duty 
pay. 
(8) Section 352(g), relating to assignment pay or 
special duty pay. 
(9) Section 353(i), relating to skill incentive pay 
or proficiency bonus. 
(10) Section 355(h), relating to retention incen-
tives for members qualified in critical military skills 
or assigned to high priority units. 
SEC. 615. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER TITLE 37 BO-
NUSES AND SPECIAL PAYS. 
The following sections of title 37, United States Code, 
are amended by striking ‘‘December 31, 2017’’ and insert-
ing ‘‘December 31, 2018’’: 
(1) Section 301b(a), relating to aviation officer 
retention bonus. 
(2) Section 307a(g), relating to assignment in-
centive pay. 
(3) Section 308(g), relating to reenlistment 
bonus for active members. 
(4) Section 309(e), relating to enlistment bonus. 
(5) Section 316a(g), relating to incentive pay for 
members of precommissioning programs pursuing for-
eign language proficiency.
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† HR 2810 EAS 
(6) Section 324(g), relating to accession bonus 
for new officers in critical skills. 
(7) Section 326(g), relating to incentive bonus 
for conversion to military occupational specialty to 
ease personnel shortage. 
(8) Section 327(h), relating to incentive bonus 
for transfer between Armed Forces. 
(9) Section 330(f), relating to accession bonus for 
officer candidates. 
SEC. 616. AVIATION BONUS MATTERS. 
Section 334(c) of title 37, United States Code, is 
amended— 
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (4) and (5), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) BUSINESS CASE FOR PAYMENT OF AVIATION 
BONUS AMOUNTS.— 
‘‘(A) IN
GENERAL.—The amount of the 
aviation bonus payable under paragraph (1)(B) 
under agreements entered into under subsection 
(d) during a fiscal year shall be determined sole-
ly through a business case analysis of the 
amount required to be paid under such agree-
ments in order to address anticipated manning
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† HR 2810 EAS 
shortfalls for such fiscal year by aircraft type 
category. 
‘‘(B) 
BUDGET
JUSTIFICATION
DOCU-
MENTS.—The budget justification documents in 
support of the budget of the President for a fiscal 
year (as submitted to Congress pursuant to sec-
tion 1105 of title 31) shall set forth for each uni-
formed service the following: 
‘‘(i) The amount requested for the pay-
ment of aviation bonuses under this section 
using amounts authorized to be appro-
priated for the fiscal year concerned by air-
craft type category. 
‘‘(ii) The business case analysis sup-
porting the amount so requested by aircraft 
type category. 
‘‘(iii) For each aircraft type category, 
whether or not the amount requested will 
permit the payment during the fiscal year 
concerned of the maximum amount of the 
aviation bonus authorized by paragraph 
(1). 
‘‘(iv) If any amount requested is to ad-
dress manning shortfalls, a description of 
any plans of the Secretary concerned to ad-
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† HR 2810 EAS 
dress such shortfalls by non-monetary 
means. 
‘‘(3) TIERED LIMITATION ON MAXIMUM AMOUNT 
OF AVIATION BONUS.— 
‘‘(A) IN GENERAL.—The maximum amount 
of the aviation bonus payable under paragraph 
(1)(B) under agreements entered into under sub-
section (d) during a fiscal year shall vary by an-
ticipated manning shortfalls for such fiscal year 
by aircraft type category. The variance shall be 
stated by tier correlating maximum bonus 
amounts with anticipated manning and reten-
tion levels, as follows: 
‘‘(i) 
Maximum 
amount 
payable 
(known as ‘Tier I’) is the amount specified 
for the fiscal year concerned by paragraph 
(1)(B) and is payable under agreements for 
duty by aircraft type category in which— 
‘‘(I) the projected manning level 
for the fiscal year does not exceed 90 
percent of the required manning level; 
or 
‘‘(II) the two-year retention trend 
for personnel performing such duty 
does not exceed 50 percent.
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‘‘(ii) 
Maximum 
amount 
payable 
(known as ‘Tier II’) is an amount equal to 
68 percent of the amount specified for the 
fiscal year concerned by paragraph (1)(B) 
and is payable under agreements for duty 
by aircraft type category in which— 
‘‘(I) the projected manning level 
for the fiscal year is between 90 and 95 
percent of the required manning level; 
or 
‘‘(II) the two-year retention trend 
for personnel performing such duty is 
between 50 and 55 percent. 
‘‘(iii) 
Maximum 
amount 
payable 
(known as ‘Tier III’) is an amount equal to 
34 percent of the amount specified for the 
fiscal year concerned by paragraph (1)(B) 
and is payable under agreements for duty 
by aircraft type category in which— 
‘‘(I) the projected manning level 
for the fiscal year is between 95 and 
100 percent of the required manning 
level; or
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† HR 2810 EAS 
‘‘(II) the two-year retention trend 
for personnel performing such duty is 
between 55 and 65 percent. 
‘‘(iv) 
Maximum 
amount 
payable 
(known as ‘Tier IV’) is zero for duty by air-
craft type category in which— 
‘‘(I) the projected manning level 
for the fiscal year is 100 percent or 
more of the required manning level; or 
‘‘(II) the two-year retention trend 
for personnel performing such duty ex-
ceeds 65 percent. 
‘‘(B) LIMITATION
ON
TOTAL
NUMBER
OF 
AGREEMENTS
PROVIDING
FOR
TIER
I
PAY-
MENT.—In no event may all the agreements en-
tered into under subsection (d) during a fiscal 
year by a Secretary concerned provide for a 
maximum amount payable as described in sub-
paragraph (A)(i).’’. 
SEC. 617. SPECIAL AVIATION INCENTIVE PAY AND BONUS 
AUTHORITIES FOR ENLISTED MEMBERS WHO 
PILOT REMOTELY PILOTED AIRCRAFT. 
(a) IN GENERAL.—Chapter 5 of title 37, United States 
Code, is amended by inserting after section 334 the fol-
lowing new section:
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† HR 2810 EAS 
‘‘§ 334a. Special aviation incentive pay and bonus au-
thorities: enlisted members who pilot re-
motely piloted aircraft 
‘‘(a) AVIATION INCENTIVE PAY.— 
‘‘(1) INCENTIVE
PAY
AUTHORIZED.—The Sec-
retary concerned may pay aviation incentive pay 
under this section to an enlisted member in a regular 
or reserve component of a uniformed service who— 
‘‘(A) is entitled to basic pay under section 
204 of this title or compensation under 206 of 
this title; 
‘‘(B) is designated as a remotely piloted 
aircraft pilot, or is in training leading to such 
a designation; 
‘‘(C) engages in, or is in training leading 
to, frequent and regular performance of oper-
ational flying duty or proficiency flying duty; 
‘‘(D) engages in or remains in aviation 
service for a specified period; and 
‘‘(E) meets such other criteria as the Sec-
retary concerned determines appropriate. 
‘‘(2) ENLISTED MEMBERS NOT CURRENTLY EN-
GAGED IN FLYING DUTY.—The Secretary concerned 
may pay aviation incentive pay under this section to 
an enlisted member who is otherwise qualified for 
such pay but who is not currently engaged in the per-
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† HR 2810 EAS 
formance of operational flying duty or proficiency 
flying duty if the Secretary determines, under regula-
tions prescribed under section 374 of this title, that 
payment of aviation pay to that enlisted member is 
in the best interests of the service. 
‘‘(b) AVIATION BONUS.—The Secretary concerned may 
pay an aviation bonus under this section to an enlisted 
member in a regular or reserve component of a uniformed 
service who— 
‘‘(1) is entitled to aviation incentive pay under 
subsection (a); 
‘‘(2) is within one year of completing the mem-
ber’s enlistment; 
‘‘(3) reenlists or voluntarily extends the mem-
ber’s enlistment for a period of at least one year or, 
in the case of an enlisted member serving pursuant to 
an indefinite reenlistment, executes a written agree-
ment to remain on active duty for a period of at least 
one year or to remain in an active status in a reserve 
component for a period of at least one year; and 
‘‘(4) meets such other criteria as the Secretary 
concerned determines appropriate. 
‘‘(c) MAXIMUM AMOUNT AND METHOD OF PAYMENT.— 
‘‘(1) MAXIMUM
AMOUNT.—The Secretary con-
cerned shall determine the amount of a bonus or in-
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† HR 2810 EAS 
centive pay to be paid under this section, except 
that— 
‘‘(A) aviation incentive pay under sub-
section (a) shall be paid at a monthly rate not 
to exceed $1,000 per month; and 
‘‘(B) an aviation bonus under subsection (b) 
may not exceed $35,000 for each 12-month pe-
riod of obligated service agreed to under sub-
section (d). 
‘‘(2) BUSINESS CASE FOR PAYMENT OF AVIATION 
BONUS AMOUNTS.— 
‘‘(A) IN
GENERAL.—The amount of the 
aviation bonus payable under paragraph (1)(B) 
under agreements entered into under subsection 
(d) during a fiscal year shall be determined sole-
ly through a business case analysis of the 
amount required to be paid under such agree-
ments in order to address anticipated manning 
shortfalls for such fiscal year by aircraft type 
category. 
‘‘(B) 
BUDGET
JUSTIFICATION
DOCU-
MENTS.—The budget justification documents in 
support of the budget of the President for a fiscal 
year (as submitted to Congress pursuant to sec-
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† HR 2810 EAS 
tion 1105 of title 31) shall set forth for each uni-
formed service the following: 
‘‘(i) The amount requested for the pay-
ment of aviation bonuses under this section 
using amounts authorized to be appro-
priated for the fiscal year concerned by air-
craft type category. 
‘‘(ii) The business case analysis sup-
porting the amount so requested by aircraft 
type category. 
‘‘(iii) For each aircraft type category, 
whether or not the amount requested will 
permit the payment during the fiscal year 
concerned of the maximum amount of the 
aviation bonus authorized by paragraph 
(1). 
‘‘(iv) If any amount requested is to ad-
dress manning shortfalls, a description of 
any plans of the Secretary concerned to ad-
dress such shortfalls by non-monetary 
means. 
‘‘(3) LUMP SUM OR INSTALLMENTS.—A bonus 
under this section may be paid in a lump sum or in 
periodic installments, as determined by the Secretary 
concerned.
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† HR 2810 EAS 
‘‘(4) FIXING BONUS AMOUNT.—Upon acceptance 
by the Secretary concerned of the written agreement 
required by subsection (d), the total amount of the 
bonus to be paid under the agreement shall be fixed. 
‘‘(d) WRITTEN AGREEMENT FOR BONUS.—To receive 
an aviation bonus under this section, an enlisted member 
determined to be eligible for the bonus shall enter into a 
written agreement with the Secretary concerned that speci-
fies— 
‘‘(1) the amount of the bonus; 
‘‘(2) the method of payment of the bonus under 
subsection (c)(2); 
‘‘(3) the period of obligated service; and 
‘‘(4) the type or conditions of the service. 
‘‘(e) RESERVE COMPONENT ENLISTED MEMBERS PER-
FORMING INACTIVE DUTY TRAINING.—An enlisted member 
of reserve component who is entitled to compensation under 
section 206 of this title and who is authorized aviation in-
centive pay under this section may be paid an amount of 
incentive pay that is proportionate to the compensation re-
ceived under section 206 of this title for inactive-duty train-
ing. 
‘‘(f) RELATIONSHIP
TO OTHER PAY
AND ALLOW-
ANCES.—
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† HR 2810 EAS 
‘‘(1) AVIATION INCENTIVE PAY.—Aviation incen-
tive pay paid to an enlisted member under subsection 
(a) shall be in addition to any other pay and allow-
ance to which the enlisted member is entitled, except 
that an enlisted member may not receive a payment 
under such subsection and section 351(a)(2) or 353(a) 
of this title for the same skill and period of service. 
‘‘(2) AVIATION BONUS.—An aviation bonus paid 
to an enlisted member under subsection (b) shall be 
in addition to any other pay and allowance to which 
the enlisted member is entitled, except that an enlisted 
member may not receive a bonus payment under such 
subsection and section 331 or 353(b) of this title for 
the same skill and period of service. 
‘‘(g) REPAYMENT.—An enlisted member who receives 
aviation incentive pay or an aviation bonus under this sec-
tion and who fails to fulfill the eligibility requirements for 
the receipt of the incentive pay or bonus or complete the 
period of service for which the incentive pay or bonus is 
paid, as specified in the written agreement under subsection 
(d) in the case of a bonus, shall be subject to the repayment 
provisions of section 373 of this title. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) AVIATION
SERVICE.—The term ‘aviation 
service’ means participation in aerial flight per-
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† HR 2810 EAS 
formed, under regulations prescribed by the Secretary 
concerned, by an eligible enlisted member remotely pi-
loted aircraft pilot. 
‘‘(2) OPERATIONAL
FLYING
DUTY.—The term 
‘operational flying duty’ means flying performed 
under competent orders by enlisted members of the 
regular or reserve components while serving in assign-
ments in which basic flying skills are normally main-
tained in the performance of assigned duties as deter-
mined by the Secretary concerned, and flying duty 
performed by members in training that leads to des-
ignation as a remotely piloted aircraft pilot by the 
Secretary concerned. 
‘‘(3) PROFICIENCY
FLYING
DUTY.—The term 
‘proficiency flying duty’ means flying performed 
under competent orders by enlisted members of the 
regular or reserve components while serving in assign-
ments in which such skills would normally not be 
maintained in the performance of assigned duties. 
‘‘(i) TERMINATION
OF AUTHORITY.—No agreement 
may be entered into under this section after December 31, 
2018.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 5 of such title is amended by in-
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† HR 2810 EAS 
serting after the item relating to section 334 the following 
new item: 
‘‘334a. Special aviation incentive pay and bonus authorities: enlisted members 
who pilot remotely piloted aircraft.’’. 
SEC. 618. TECHNICAL AND CONFORMING AMENDMENTS RE-
LATING TO 2008 CONSOLIDATION OF SPECIAL 
PAY AUTHORITIES. 
(a) REPAYMENT PROVISIONS.— 
(1) TITLE 10.—The following provisions of title 
10, United States Code, are each amended by insert-
ing ‘‘or 373’’ before ‘‘of title 37’’: 
(A) Section 510(i). 
(B) Subsections (a)(3) and (c) of section 
2005. 
(C) Paragraphs (1) and (2) of section 
2007(e). 
(D) Section 2105. 
(E) Section 2123(e)(1)(C). 
(F) Section 2128(c). 
(G) Section 2130a(d). 
(H) Section 2171(g). 
(I) Section 2173(g)(2). 
(J) Paragraphs (1) and (2) of section 
2200a(e). 
(K) Section 4348(f). 
(L) Section 6959(f).
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† HR 2810 EAS 
(M) Section 9348(f). 
(N) Subsections (a)(2) and (b) of section 
16135. 
(O) Section 16203(a)(1)(B). 
(P) Section 16301(h). 
(Q) Section 16303(d). 
(R) Paragraphs (1) and (2) of section 
16401(f). 
(2) TITLE 14.—Section 182(g) of title 14, United 
States Code, is amended by inserting ‘‘or 373’’ before 
‘‘of title 37’’. 
(b) OFFICERS APPOINTED PURSUANT TO AN AGREE-
MENT UNDER SECTION 329 OF TITLE 37.—Section 641 of 
title 10, United States Code, is amended by striking para-
graph (6). 
(c) REENLISTMENT LEAVE.—The matter preceding 
paragraph (1) of section 703(b) of title 10, United States 
Code, is amended by inserting ‘‘or paragraph (1) or (3) 
of section 351(a)’’ after ‘‘section 310(a)(2)’’. 
(d) REST AND RECUPERATION ABSENCE FOR QUALI-
FIED MEMBERS EXTENDING DUTY AT DESIGNATED LOCA-
TION OVERSEAS.—The matter following paragraph (4) of 
section 705(a) of title 10, United States Code, is amended 
by inserting ‘‘or 352’’ after ‘‘section 314’’.
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† HR 2810 EAS 
(e) REST AND RECUPERATION ABSENCE FOR CERTAIN 
MEMBERS UNDERGOING EXTENDED DEPLOYMENT TO COM-
BAT ZONE.—Section 705a(b)(1)(B) of title 10, United 
States Code, is amended by inserting ‘‘or 352(a)’’ after ‘‘sec-
tion 305’’. 
(f) ADDITIONAL INCENTIVES FOR HEALTH PROFES-
SIONALS
OF
THE INDIAN HEALTH SERVICE.—Section 
116(a) of the Indian Health Care Improvement Act (25 
U.S.C. 1616i(a)) is amended by inserting ‘‘or 335(b)’’ after 
‘‘section 302(b)’’. 
(g) MILITARY PAY AND ALLOWANCES CONTINUANCE 
WHILE IN A MISSING STATUS.—Section 552(a)(2) of title 
37, United States Code, is amended by inserting ‘‘or section 
351(a)(2)’’ after ‘‘section 301’’. 
(h) MILITARY PAY AND ALLOWANCES.—Section 907(d) 
of title 37, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by inserting ‘‘or 
351’’ after ‘‘section 301’’; 
(B) in subparagraph (B), by inserting ‘‘or 
352’’ after ‘‘section 301c’’; 
(C) in subparagraph (C), by inserting ‘‘or 
353(a)’’ after ‘‘section 304’’; 
(D) in subparagraph (D), by inserting ‘‘or 
352’’ after ‘‘section 305’’;
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† HR 2810 EAS 
(E) in subparagraph (E), by inserting ‘‘or 
352’’ after ‘‘section 305a’’; 
(F) in subparagraph (F), by inserting ‘‘or 
352’’ after ‘‘section 305b’’; 
(G) in subparagraph (G), by inserting ‘‘or 
352’’ after ‘‘section 307a’’; 
(H) in subparagraph (I), by inserting ‘‘or 
352’’ after ‘‘section 314’’; 
(I) in subparagraph (J), by striking ‘‘316’’ 
and inserting ‘‘353(b)’’; and 
(J) in subparagraph (K), by striking ‘‘323’’ 
and inserting ‘‘section 355’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘or 
352’’ after ‘‘section 307’’; 
(B) in subparagraph (B), by striking ‘‘308’’ 
and inserting ‘‘331’’; 
(C) in subparagraph (C), by striking ‘‘309’’ 
and inserting ‘‘331’’; and 
(D) in subparagraph (D), by inserting ‘‘or 
353’’ after ‘‘section 320’’. 
(i) PAY AND ALLOWANCES OF OFFICERS OF THE PUB-
LIC HEALTH SERVICE.—Section 208(a)(2) of the Public 
Health Service Act (42 U.S.C. 210(a)(2)) is amended by 
inserting ‘‘or 373’’ after ‘‘303a(b)’’.
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† HR 2810 EAS 
Subtitle C—Disability Pay, Retired 
Pay, and Survivor Benefits 
PART I—AMENDMENTS IN CONNECTION WITH 
RETIRED PAY REFORM 
SEC. 631. ADJUSTMENTS TO SURVIVOR BENEFIT PLAN FOR 
MEMBERS ELECTING LUMP SUM PAYMENTS 
OF RETIRED PAY UNDER THE MODERNIZED 
RETIREMENT SYSTEM FOR MEMBERS OF THE 
UNIFORMED SERVICES. 
(a) 
DEFINITION
OF
BASE
AMOUNT.—Section 
1447(6)(A) of title 10, United States Code, is amended in 
the matter preceding clause (i) by inserting ‘‘or 
1415(b)(1)(B)’’ after ‘‘section 1409(b)(2)’’. 
(b) COORDINATION WITH REDUCTIONS IN RETIRED 
PAY.—Section 1452 of such title is amended— 
(1) in subsection (a)(1), by inserting ‘‘, other 
than retired pay received as a lump sum under sec-
tion 1415(b)(1)(A) of this title,’’ in the matter pre-
ceding subparagraph (A) after ‘‘, the retired pay’’; 
(2) in subsection (b)(1), by inserting ‘‘, other 
than retired pay received as a lump sum under sec-
tion 1415(b)(1)(A) of this title,’’ after ‘‘The retired 
pay’’; and 
(3) in subsection (c)—
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† HR 2810 EAS 
(A) in paragraph (1), by inserting ‘‘, other 
than retired pay received as a lump sum under 
section 1415(b)(1)(A) of this title,’’ after ‘‘The re-
tired pay’’; and 
(B) in paragraph (4), by inserting ‘‘or 
1415(b)(1)(B)’’ after ‘‘section 1409(b)(2)’’. 
SEC. 632. TECHNICAL CORRECTION REGARDING ELECTION 
TO PARTICIPATE IN MODERNIZED RETIRE-
MENT SYSTEM FOR RESERVE COMPONENT 
MEMBERS EXPERIENCING A BREAK IN SERV-
ICE. 
(a) PERSONS EXPERIENCING A BREAK IN SERVICE.— 
Section 12739(f)(2)(B)(iii) of title 10, United States Code, 
is amended by striking ‘‘on the date of the reentry’’ and 
inserting ‘‘within 30 days after the date of the reentry’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 2018, imme-
diately after the coming into effect of the amendment made 
by section 631(b) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 843), 
to which the amendment made by subsection (a) relates.
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† HR 2810 EAS 
SEC. 633. PROMOTION OF FINANCIAL LITERACY CON-
CERNING RETIREMENT AMONG MEMBERS OF 
THE ARMED FORCES. 
(a) PROGRAMS FOR PROMOTION REQUIRED.—The Sec-
retary of Defense shall develop programs of financial lit-
eracy for members of the Armed Forces to assist members 
in better understanding retirement options and planning 
for retirement. 
(b) INFORMATION ON COMPARATIVE VALUE OF LUMP 
SUM AND MONTHLY PAYMENTS OF RETIRED PAY WITH 
CONVENTIONAL RETIRED PAY.—The Secretary of Defense 
shall develop information to be provided to members of the 
Armed Forces who are eligible to make the election provided 
for in subsection (b)(1) of section 1415 of title 10, United 
States Code, to assist such members in making an informed 
comparison for purposes of the election between the fol-
lowing: 
(1) The value of the lump sum payment of re-
tired pay and monthly payments provided for in such 
subsection (b)(1) by reason of the election, including 
the manner in which the lump sum and such monthly 
payments are determined for any particular member. 
(2) The value of retired pay payable under sub-
section (d) of such section in the absence of the elec-
tion, including the manner in which such retired pay 
is determined for any particular member.
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† HR 2810 EAS 
PART II—OTHER MATTERS 
SEC. 636. AUTHORITY FOR THE SECRETARIES OF THE MILI-
TARY DEPARTMENTS TO PROVIDE FOR CARE 
OF REMAINS OF THOSE WHO DIE ON ACTIVE 
DUTY AND ARE INTERRED IN A FOREIGN 
CEMETERY. 
Section 1482(a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(10) In the case of a decedent under the juris-
diction of a Secretary of a military department at the 
time of death, enduring care of remains interred in 
a foreign cemetery if the burial location was des-
ignated by such Secretary.’’. 
SEC. 637. TECHNICAL CORRECTIONS TO USE OF MEMBER’S 
CURRENT PAY GRADE AND YEARS OF SERV-
ICE IN A DIVISION OF PROPERTY INVOLVING 
DISPOSABLE RETIRED PAY. 
(a) IN GENERAL.—Section 1408 of title 10, United 
States Code, is amended— 
(1) in subsection (a)(4)— 
(A) in the matter preceding clause (i) of 
subparagraph (A), by striking ‘‘(as determined 
pursuant to subparagraph (B)’’; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph (B):
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† HR 2810 EAS 
‘‘(B) For purposes of subparagraph (A), in the 
case of a division of property as part of a final decree 
of divorce, dissolution, annulment, or legal separation 
that becomes final prior to the date of a member’s re-
tirement, the total monthly retired pay to which the 
member is entitled shall be— 
‘‘(i) in the case of a member not described 
in clause (ii), the amount of retired pay to 
which the member would have been entitled using 
the member’s retired pay base and years of serv-
ice on the date of the decree of divorce, dissolu-
tion, annulment, or legal separation, as com-
puted under section 1406 or 1407 of this title, 
whichever is applicable, increased by the sum of 
the cost-of-living adjustments that— 
‘‘(I) would have occurred under section 
1401a(b) of this title between the date of the 
decree of divorce, dissolution, annulment, or 
legal separation and the time of the mem-
ber’s retirement using the adjustment provi-
sions under section 1401a of this title appli-
cable to the member upon retirement; and 
‘‘(II) occur under 1401a of this title 
after the member’s retirement; or
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† HR 2810 EAS 
‘‘(ii) in the case of a member who becomes 
entitled to retired pay pursuant to chapter 1223 
of this title, the amount of retired pay to which 
the member would have been entitled using the 
member’s retired pay base and creditable service 
points on the date of the decree of divorce, dis-
solution, annulment, or legal separation, as com-
puter under chapter 1223 of this title, increased 
by the sum of the cost-of-living adjustments as 
described in clause (i) that apply with respect to 
the member.’’; and 
(2) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(8) A division of property award computed as a per-
centage of a member’s disposable retired pay shall be in-
creased by the same percentage as any cost-of-living adjust-
ment made under section 1401a after the member’s retire-
ment.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on December 23, 2016, as if en-
acted immediately following the enactment of the National 
Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328) to which such amendments relate. 
(c) APPLICABILITY.—The amendments made by sub-
section (a) shall apply with respect to any division of prop-
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† HR 2810 EAS 
erty as part of a final decree of divorce, dissolution, annul-
ment, or legal separation involving a member of the Armed 
Forces to which section 1408 of title 10, United States Code, 
applies that becomes final after December 23, 2016. 
SEC. 638. PERMANENT EXTENSION AND COST-OF-LIVING 
ADJUSTMENTS OF SPECIAL SURVIVOR IN-
DEMNITY ALLOWANCES UNDER THE SUR-
VIVOR BENEFIT PLAN. 
Section 1450(m) of title 10, United States Code, is 
amended— 
(1) in paragraph (2)— 
(A) in subparagraph (H), by striking 
‘‘and’’ at the end; and 
(B) by striking subparagraph (I) and in-
serting the following new subparagraphs: 
‘‘(I) for months from October 2016 through 
December 2018, $310; and 
‘‘(J) for months during any calendar year 
after 2018, the amount determined in accordance 
with paragraph (6).’’; and 
(2) by striking paragraph (6) and inserting the 
following new paragraph (6): 
‘‘(6) 
COST-OF-LIVING
ADJUSTMENTS
AFTER 
2018.—
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† HR 2810 EAS 
‘‘(A) IN GENERAL.—The amount of the al-
lowance payable under paragraph (1) for months 
during any calendar year beginning after 2018 
shall be— 
‘‘(i) the amount payable pursuant to 
paragraph (2) for months during the pre-
ceding calendar year, plus 
‘‘(ii) an amount equal to the percent-
age of the amount determined pursuant to 
clause (i) which percentage is equal to the 
percentage increase in retired pay of mem-
bers and former members of the armed 
forces for such calendar year under section 
1401a of this title. 
‘‘(B) PUBLIC NOTICE ON AMOUNT OF AL-
LOWANCE PAYABLE.—The Secretary of Defense 
shall publish in the Federal Register each year 
the amount of the allowance payable under para-
graph (1) for months in such year by reason of 
the operation of this paragraph.’’.
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Subtitle D—Other Matters 
SEC. 651. CONSTRUCTION OF DOMESTIC SOURCE REQUIRE-
MENT FOR FOOTWEAR FURNISHED TO EN-
LISTED MEMBERS OF THE ARMED FORCES ON 
INITIAL ENTRY INTO THE ARMED FORCES. 
Section 418(d) of title 37, United States Code, is 
amended by adding at the end the following new para-
graphs: 
‘‘(4) This subsection does not apply to the furnishing 
of athletic footwear to the members of the Army, the Navy, 
the Air Force, or the Marine Corps upon their initial entry 
into the armed forces, or prohibit the provision of a cash 
allowance to such members for such purpose, if the Sec-
retary of Defense determines that compliance with para-
graph (2) would result in a sole source contract for procure-
ment of athletic footwear for the purpose stated in para-
graph (1) because there would be only a sole certified of 
supply for such footwear. 
‘‘(5) The Secretary of Defense shall ensure that all pro-
curements of athletic footwear to which this subsection ap-
plies are made using firm fixed price contracts.’’. 
SEC. 652. INCLUSION OF DEPARTMENT OF AGRICULTURE IN 
TRANSITION ASSISTANCE PROGRAM. 
(a) IN GENERAL.—Subsection (a) of section 1144 of 
title 10, United States Code, is amended by striking ‘‘and
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† HR 2810 EAS 
the Secretary of Veterans Affairs’’ each place it appears in 
paragraphs (1) and (2) and inserting ‘‘the Secretary of Vet-
erans Affairs, and the Secretary of Agriculture’’. 
(b) INCLUSION
IN ELEMENTS
OF PROGRAM.—Sub-
section (b) of such section is amended by adding at the end 
the following new paragraph: 
‘‘(12) Provide information regarding the avail-
ability to such members of the following through the 
Department of Agriculture: 
‘‘(A) Grants, loans, and other assistance to 
enter production agriculture or engage in rural 
entrepreneurship. 
‘‘(B) Identification of and assistance in ob-
taining employment within the agricultural sec-
tor that aligns with military occupational spe-
cialties or military certifications, including em-
ployment with the Department. 
‘‘(C) Training and apprenticeships for em-
ployment in rural communities and in the agri-
cultural and food sectors.’’. 
SEC. 653. REVIEW AND UPDATE OF REGULATIONS GOV-
ERNING DEBT COLLECTORS INTERACTIONS 
WITH UNIT COMMANDERS. 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall review and update
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† HR 2810 EAS 
Department of Defense Instruction 1344.09 and any associ-
ated regulations to ensure that such regulations comply 
with Federal consumer protection laws with respect to the 
collection of debt. 
TITLE VII—HEALTH CARE 
PROVISIONS 
Subtitle A—TRICARE and Other 
Health Care Benefits 
SEC. 701. TRICARE ADVANTAGE DEMONSTRATION PRO-
GRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary 
shall, in consultation with the Secretary of Health 
and Human Services, establish a demonstration pro-
gram to enable applicable eligible individuals to en-
roll in Medicare Advantage plans. 
(2) DURATION.—The demonstration program es-
tablished under paragraph (1) shall be carried out for 
a period of not less than five years. 
(b) PLANS.— 
(1) SELECTION.—The Secretary shall competi-
tively select one or more Medicare Advantage plans 
for which the Secretary of Health and Human Serv-
ices has waived or modified requirements under sec-
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† HR 2810 EAS 
tion 1857(i) of the Social Security Act (42 U.S.C. 
1395w–27(i)) in market areas of the TRICARE pro-
gram with large concentrations of beneficiaries eligi-
ble for TRICARE for Life (as determined by the Sec-
retary) to participate in the demonstration program 
through the use of risk-bearing, capitated contracts 
with Medicare Advantage organizations. 
(2) REQUIREMENTS.—Each Medicare Advantage 
plan selected under paragraph (1) shall meet the fol-
lowing requirements: 
(A) The plan is an MA–PD plan (as de-
fined in section 1860D–1(a)(3)(C) of the Social 
Security Act (42 U.S.C. 1395w–101(a)(3)(C))). 
(B) The plan has a minimum quality star 
rating of four or higher under section 1853(o)(4) 
of such Act (42 U.S.C. 1395w–23(o)(4)). 
(C) The plan and the Medicare Advantage 
organization offering the plan meet such other 
criteria as the Secretary determines appropriate 
for purposes of this section. 
(3) USE OF DEPARTMENT FACILITIES AND SERV-
ICES.— 
(A) MILITARY
TREATMENT
FACILITIES.— 
The Secretary may include military treatment 
facilities as authorized providers for applicable
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† HR 2810 EAS 
eligible individuals enrolled in a Medicare Ad-
vantage plan participating in the demonstration 
program as a service provided by the Depart-
ment of Defense. 
(B) PHARMACY BENEFITS PROGRAM.—The 
Secretary may include coverage of pharma-
ceutical agents under the pharmacy benefits pro-
gram under section 1074g of title 10, United 
States Code, as a coverage option for applicable 
eligible individuals enrolled in a Medicare Ad-
vantage plan participating in the demonstration 
program as a service provided by the Depart-
ment of Defense. 
(c) ENROLLMENT OF APPLICABLE ELIGIBLE INDIVID-
UALS.—Unless an applicable eligible individual opts out, 
all applicable eligible individuals located in an area par-
ticipating in the demonstration program shall be enrolled 
in a Medicare Advantage plan selected under subsection 
(b)(1). 
(d) COSTS OF PROGRAM.—The Secretary and the Sec-
retary of Health and Human Services shall jointly deter-
mine the appropriate distribution of costs and potential 
savings to the Department of Defense and the Department 
of Health and Human Services that result from the dem-
onstration program.
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† HR 2810 EAS 
(e) REPORTS.— 
(1) REPORT
ON
IMPLEMENTATION
OF
PRO-
GRAM.— 
(A) IN GENERAL.—Not later than one year 
after the date of the enactment of this Act, the 
Secretary shall submit to the Committees on 
Armed Services of the Senate and the House of 
Representatives a report on the implementation 
by the Secretary of the demonstration program 
under this section. 
(B) ELEMENTS.—The report required by 
subparagraph (A) shall include the following: 
(i) A description of each Medicare Ad-
vantage plan participating in the dem-
onstration program, disaggregated by mar-
ket area of the TRICARE program (as de-
termined by the Secretary). 
(ii) A description of covered benefits, 
premium rates, and copayments or cost 
sharing, if any, for each Medicare Advan-
tage plan participating in the demonstra-
tion program in each such area. 
(iii) The number of applicable eligible 
individuals eligible to enroll and the num-
ber of applicable eligible individuals pro-
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jected to enroll in each Medicare Advantage 
plan participating in the demonstration 
program in each such area. 
(iv) An assessment of projected average 
annual out-of-pocket costs, if any, for appli-
cable eligible individuals enrolled in each 
Medicare Advantage plan participating in 
the demonstration program. 
(v) A description of outcome metrics 
developed to measure quality of care, im-
proved health outcomes, better access to 
care, and enhanced beneficiary experience 
under the demonstration program. 
(2) FINAL REPORT.—Not later than four years 
after the date of the enactment of this Act, the Sec-
retary shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a 
report providing a comprehensive assessment of the 
demonstration program under this section. 
(f) DEFINITIONS.—In this section: 
(1) APPLICABLE
ELIGIBLE
INDIVIDUAL.—The 
term ‘‘applicable eligible individual’’ means an eligi-
ble individual (as defined in paragraph (2)) who is 
a Medicare Advantage eligible individual (as defined
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† HR 2810 EAS 
in section 1851(a)(3) of the Social Security Act (42 
U.S.C. 1395w–21(a)(3))). 
(2) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible 
individual’’ means an individual eligible for health 
benefits under section 1086(d) of title 10, United 
States Code. 
(3) MEDICARE ADVANTAGE ORGANIZATION.—The 
term ‘‘Medicare Advantage organization’’ has the 
meaning given that term in section 1859 of the Social 
Security Act (42 U.S.C. 1395w–28). 
(4) MEDICARE
ADVANTAGE
PLAN.—The term 
‘‘Medicare Advantage plan’’ means a health plan 
under part C of title XVIII of the Social Security Act 
(42 U.S.C. 1395w–21 et seq.). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Defense. 
(6) TRICARE PROGRAM; TRICARE FOR LIFE.— 
The terms ‘‘TRICARE program’’ and ‘‘TRICARE for 
Life’’ have the meanings given those terms in section 
1072 of title 10, United States Code. 
(g) REGULATIONS.— 
(1) IN GENERAL.—In order to implement expedi-
tiously the demonstration program under this section, 
the Secretary may prescribe such changes to the regu-
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† HR 2810 EAS 
lations implementing the TRICARE program as the 
Secretary considers appropriate. 
(2) RULEMAKING.—The Secretary shall imple-
ment any changes prescribed under paragraph (1)— 
(A) by prescribing an interim final rule; 
and 
(B) not later than 180 days after pre-
scribing such interim final rule and considering 
public comments with respect to such interim 
final rule, by prescribing a final rule. 
(h) WAIVER AUTHORITY.—The Secretary of Health 
and Human Services may waive such requirements of titles 
XI and XVIII of the Social Security Act (42 U.S.C. 1301 
et seq.; 1395 et seq.) as may be necessary for purposes of 
carrying out this section. 
SEC. 702. CONTINUED ACCESS TO MEDICAL CARE AT FA-
CILITIES OF THE UNIFORMED SERVICES FOR 
CERTAIN MEMBERS OF THE RESERVE COMPO-
NENTS. 
(a) TRICARE RESERVE SELECT.—Paragraph (2) of 
section 1076d(f) of title 10, United States Code, is amended 
to read as follows: 
‘‘(2) The term ‘TRICARE Reserve Select’ 
means—
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† HR 2810 EAS 
‘‘(A) medical care at facilities of the uni-
formed services to which a dependent described 
in section 1076(a)(2) of this title is entitled; and 
‘‘(B) health benefits under the TRICARE 
Select self-managed, preferred provider network 
option under section 1075 of this title made 
available to beneficiaries by reason of this section 
and subject to the cost-sharing requirements set 
forth in such section 1075.’’. 
(b) TRICARE RETIRED RESERVE.—Section 1076e is 
amended— 
(1) In subsection (b), in the subsection heading, 
by striking ‘‘RETIRED RESERVE’’; 
(2) In subsection (c), by striking ‘‘Retired Re-
serve’’ the last place it appears; and 
(3) in subsection (f), by striking paragraph (2) 
and inserting the following: 
‘‘(2) The term ‘TRICARE Retired Reserve’ 
means— 
‘‘(A) medical care at facilities of the uni-
formed services to which a dependent described 
in section 1076(a)(2) of this title is entitled; and 
‘‘(B) health benefits under the TRICARE 
Select self-managed, preferred provider network 
option under section 1075 of this title made
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† HR 2810 EAS 
available to beneficiaries by reason of this section 
and subject to the cost-sharing requirements set 
forth in such section 1075.’’. 
SEC. 703. MODIFICATION OF ELIGIBILITY FOR TRICARE RE-
SERVE SELECT AND TRICARE RETIRED RE-
SERVE OF CERTAIN MEMBERS OF THE RE-
SERVE COMPONENTS. 
(a) TRICARE RESERVE SELECT.—Section 1076d(a) 
of title 10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘(1) Except as 
provided in paragraph (2), a member’’ and inserting 
‘‘A member’’; and 
(2) by striking paragraph (2). 
(b) TRICARE RETIRED RESERVE.—Section 1076e(a) 
of title 10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘(1) Except as 
provided in paragraph (2), a member’’ and inserting 
‘‘A member’’; and 
(2) by striking paragraph (2). 
SEC. 704. EXPEDITED EVALUATION AND TREATMENT FOR 
PRENATAL SURGERY UNDER THE TRICARE 
PROGRAM. 
(a) IN GENERAL.—The Secretary of Defense shall im-
plement processes and procedures to ensure that a covered 
beneficiary under the TRICARE program whose pregnancy
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† HR 2810 EAS 
is complicated with a fetal condition or suspected of being 
complicated with a fetal condition receives, in an expedited 
manner and at the discretion of the covered beneficiary, 
evaluation, non-directive counseling, and treatment from a 
perinatal or pediatric specialist capable of providing sur-
gical management and intervention in utero. 
(b) DEFINITIONS.—In this section, the terms ‘‘covered 
beneficiary’’ and ‘‘TRICARE program’’ have the meanings 
given those terms in section 1072 of title 10, United States 
Code. 
SEC. 705. SPECIFICATION THAT INDIVIDUALS UNDER THE 
AGE OF 21 ARE ELIGIBLE FOR HOSPICE CARE 
SERVICES UNDER THE TRICARE PROGRAM. 
Section 1079(a)(15) of title 10, United States Code, 
is amended by inserting before the period at the end the 
following: ‘‘, except that hospice care may be provided to 
individuals under the age of 21’’. 
SEC. 706. MODIFICATIONS OF COST-SHARING REQUIRE-
MENTS FOR THE TRICARE PHARMACY BENE-
FITS PROGRAM AND TREATMENT OF CERTAIN 
PHARMACEUTICAL AGENTS. 
(a) IN GENERAL.—Paragraph (6) of section 1074g(a) 
of title 10, United States Code, is amended to read as fol-
lows:
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† HR 2810 EAS 
‘‘(6)(A) In the case of any of the years 2018 through 
2026, the cost-sharing amounts under this subsection for eli-
gible covered beneficiaries shall be determined in accordance 
with the following table: 
‘‘For: 
The cost-shar-
ing amount 
for a 30-day 
supply of a re-
tail generic is: 
The cost-shar-
ing amount 
for a 30-day 
supply of a re-
tail formulary 
is: 
The cost-shar-
ing amount 
for a 90-day 
supply of a 
mail order ge-
neric is: 
The cost-shar-
ing amount 
for a 90-day 
supply of a 
mail order for-
mulary is: 
The cost-shar-
ing amount 
for a 90-day 
supply of a 
mail order 
non-formulary 
is: 
2018 
$10 
$28 
$10 
$28 
$54 
2019 
$10 
$30 
$10 
$30 
$58 
2020 
$10 
$32 
$10 
$32 
$62 
2021 
$11 
$34 
$11 
$34 
$66 
2022 
$11 
$36 
$11 
$36 
$70 
2023 
$11 
$38 
$11 
$38 
$75 
2024 
$12 
$40 
$12 
$40 
$80 
2025 
$13 
$42 
$13 
$42 
$85 
2026 
$14 
$45 
$14 
$45 
$90 
‘‘(B) For any year after 2026, the cost-sharing 
amounts under this subsection for eligible covered bene-
ficiaries shall be equal to the cost-sharing amounts for the 
previous year adjusted by an amount, if any, determined 
by the Secretary to reflect changes in the costs of pharma-
ceutical agents and prescription dispensing, rounded to the 
nearest dollar. 
‘‘(C) Notwithstanding subparagraphs (A) and (B), the 
cost-sharing amounts under this subsection for a dependent 
of a member of the uniformed services who dies while on 
active duty, a member retired under chapter 61 of this title,
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† HR 2810 EAS 
or a dependent of a member retired under such chapter shall 
be equal to the cost-sharing amounts, if any, for 2017.’’. 
(b) TREATMENT
OF
CERTAIN
PHARMACEUTICAL 
AGENTS.— 
(1) PHARMACY BENEFITS PROGRAM.—Such sec-
tion is amended by adding at the end the following 
new paragraph: 
‘‘(10) Notwithstanding paragraphs (2), (5), and (6), 
in order to encourage the use by covered beneficiaries of 
pharmaceutical agents that provide the greatest value to 
covered beneficiaries and the Department of Defense (as de-
termined by the Secretary, including considerations of bet-
ter care, healthier people, and smarter spending), the Sec-
retary may, upon the recommendation of the Pharmacy and 
Therapeutics Committee established under subsection (b) 
and review by the Uniform Formulary Beneficiary Advi-
sory Panel established under subsection (c)— 
‘‘(A) exclude from the pharmacy benefits pro-
gram any pharmaceutical agent that the Secretary 
determines provides very little or no value to covered 
beneficiaries and the Department under the program; 
and 
‘‘(B) give preferential status to any non-generic 
pharmaceutical agent on the uniform formulary by 
treating it, for purposes of cost-sharing under para-
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† HR 2810 EAS 
graph (6), as a generic product under the TRICARE 
retail pharmacy program and mail order pharmacy 
program.’’. 
(2) MEDICAL CONTRACTS.—Section 1079 of such 
title is amended by adding at the end the following 
new subsection: 
‘‘(q) In the case of any pharmaceutical agent (as de-
fined in section 1074g(g) of this title) provided under a con-
tract entered into under this section by a physician, in an 
outpatient department of a hospital, or otherwise as part 
of any medical services provided under such a contract, the 
Secretary of Defense may, under regulations prescribed by 
the Secretary, adopt special reimbursement methods, 
amounts, and procedures to encourage the use of high-value 
products and discourage the use of low-value products, as 
determined by the Secretary.’’. 
(3) REGULATIONS.—In order to implement expe-
ditiously the reforms authorized by the amendments 
made by paragraphs (1) and (2), the Secretary of De-
fense may prescribe such changes to the regulations 
implementing the TRICARE program (as defined in 
section 1072 of title 10, United States Code) as the 
Secretary considers appropriate— 
(A) by prescribing an interim final rule; 
and
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(B) not later than one year after pre-
scribing such interim final rule and considering 
public comments with respect to such interim 
final rule, by prescribing a final rule. 
SEC. 707. CONSOLIDATION OF COST-SHARING REQUIRE-
MENTS 
UNDER 
TRICARE 
SELECT 
AND 
TRICARE PRIME. 
(a) TRICARE SELECT.— 
(1) IN
GENERAL.—Section 1075 of title 10, 
United States Code, is amended— 
(A) in subsection (c), by striking para-
graphs (1) and (2) and inserting the following 
new paragraphs: 
‘‘(1) With respect to beneficiaries in the active- 
duty family member category or the retired category 
other than beneficiaries described in paragraph 
(2)(B), the cost-sharing requirements shall be cal-
culated pursuant to subsection (d)(1). 
‘‘(2)(A) With respect to beneficiaries described in 
subparagraph (B) in the active-duty family member 
category or the retired category, the cost-sharing re-
quirements shall be calculated as if the beneficiary 
were enrolled in TRICARE Extra or TRICARE 
Standard as if TRICARE Extra or TRICARE
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† HR 2810 EAS 
Standard, as the case may be, were still being carried 
out by the Secretary. 
‘‘(B) Beneficiaries described in this subpara-
graph are the following beneficiaries: 
‘‘(i) Retired members and the family mem-
bers of such retired members covered by section 
1086(c)(1) of this title by reason of being retired 
under chapter 61 of this title or being a depend-
ent of such a retired member. 
‘‘(ii) 
Survivors 
covered 
by 
section 
1086(c)(2) of this title.’’; 
(B) by striking subsection (e); and 
(C) by redesignating subsections (f), (g), 
and (h) as subsections (e), (f), and (g), respec-
tively. 
(2) 
CONFORMING
AMENDMENT.—Subsection 
(d)(2) of such section is amended by striking ‘‘, and 
the amounts specified under paragraphs (1) and (2) 
of subsection (e),’’. 
(b) TRICARE PRIME.—Section 1075a(a) of title 10, 
United States Code, is amended— 
(1) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) With respect to beneficiaries in the active- 
duty family member category or the retired category
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† HR 2810 EAS 
(as described in section 1075(b)(1) of this title) other 
than beneficiaries described in paragraph (3)(B), the 
cost-sharing requirements shall be calculated pursuant 
to subsection (b)(1).’’; and 
(2) in paragraph (3), by striking subparagraph 
(B) and inserting the following new subparagraph: 
‘‘(B) Beneficiaries described in this subpara-
graph are the following beneficiaries: 
‘‘(i) Retired members and the family mem-
bers of such retired members covered by section 
1086(c)(1) of this title by reason of being retired 
under chapter 61 of this title or being a depend-
ent of such a retired member. 
‘‘(ii) 
Survivors 
covered 
by 
section 
1086(c)(2) of this title.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on January 1, 2018. 
SEC. 708. TRICARE TECHNICAL AMENDMENTS. 
(a) DEFINITION
OF TRICARE STANDARD.—Para-
graph (15) of section 1072 of title 10, United States Code, 
is amended to read as follows: 
‘‘(15) The term ‘TRICARE Standard’ means the 
TRICARE program made available prior to January 
1, 2018, covering health benefits contracted for under 
the authority of section 1079(a) or 1086(a) of this
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title and subject to the same rates and conditions as 
apply to persons covered under those sections.’’. 
(b) COST-SHARING AMOUNTS.— 
(1) TRICARE SELECT.— 
(A) 
ALLOWANCE
OF
COST-SHARING 
AMOUNTS
AS
DETERMINED
BY
THE
SEC-
RETARY.—Subsection (d) of section 1075 of such 
title is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) The cost-sharing requirements applicable to serv-
ices not specifically addressed in the table set forth in para-
graph (1) shall be established by the Secretary.’’. 
(B) MODIFICATION OF REFERENCE TO AM-
BULANCE CIVILIAN NETWORK.—Paragraph (1) of 
such subsection is amended, in the first column 
of the table, by striking ‘‘Ambulance civilian net-
work’’ and inserting ‘‘Ground ambulance civil-
ian network’’. 
(2) TRICARE PRIME.— 
(A) 
ALLOWANCE
OF
COST-SHARING 
AMOUNTS
AS
DETERMINED
BY
THE
SEC-
RETARY.—Subsection (b) of section 1075a of such 
title is amended by adding at the end the fol-
lowing new paragraph:
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† HR 2810 EAS 
‘‘(4) The cost-sharing requirements applicable to serv-
ices not specifically addressed in the table set forth in para-
graph (1) shall be established by the Secretary.’’. 
(B) MODIFICATION OF REFERENCE TO AM-
BULANCE CIVILIAN NETWORK.—Paragraph (1) of 
such section is amended, in the first column of 
the table, by striking ‘‘Ambulance civilian net-
work’’ and inserting ‘‘Ground ambulance civil-
ian network’’. 
(c) MEDICAL CARE FOR DEPENDENTS.— 
(1) REFERENCE TO MEDICALLY NECESSARY VITA-
MINS.—Paragraphs (3) and (18) of section 1077(a) of 
such title are amended by striking ‘‘subsection (g)’’ 
each place it appears and inserting ‘‘subsection (h)’’. 
(2) ELIGIBILITY OF DEPENDENTS TO PURCHASE 
HEARING
AIDS.—Section 1077(g) of such title is 
amended by striking ‘‘of former members of the uni-
formed services’’ and inserting ‘‘eligible for care under 
this section’’. 
(d) MODIFICATION
OF
REFERENCE
TO
FISCAL 
YEAR.— 
(1) 
CONTRACTS
FOR
MEDICAL
CARE
FOR 
SPOUSES AND CHILDREN.—Section 1079(b) such title 
is amended by striking ‘‘fiscal year’’ each place it ap-
pears and inserting ‘‘calendar year’’.
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† HR 2810 EAS 
(2) CONTRACTS
FOR
HEALTH
BENEFITS
FOR 
CERTAIN MEMBERS, FORMER MEMBERS, AND THEIR 
DEPENDENTS.—Section 1086(b) of such title is 
amended by striking ‘‘fiscal year’’ each place it ap-
pears and inserting ‘‘calendar year’’. 
(e) 
REFERRALS
AND
PREAUTHORIZATIONS
FOR 
TRICARE PRIME.— 
(1) PREAUTHORIZATION FOR CARE AT RESIDEN-
TIAL TREATMENT CENTERS.—Section 1095f(b) of such 
title is amended by adding at the end the following 
new paragraph: 
‘‘(4) Inpatient care at a residential treatment 
center.’’. 
(2) REFERENCE.—Section 1075a(c) of such title 
is amended by striking ‘‘section 1075f(a)’’ and insert-
ing ‘‘section 1095f(a)’’. 
(f) APPLICABILITY
OF PREMIUM
FOR DEPENDENT 
COVERAGE.—Section 1110b(c)(1) of such title is amended 
by striking ‘‘section 1075 of this section’’ and inserting 
‘‘section 1075 or 1075a of this title, as appropriate’’. 
SEC. 709. CONTRACEPTION COVERAGE PARITY UNDER THE 
TRICARE PROGRAM. 
(a) IN GENERAL.—Section 1074d of title 10, United 
States Code, is amended— 
(1) in subsection (a)—
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† HR 2810 EAS 
(A) in the subsection heading, by inserting 
‘‘FOR MEMBERS AND FORMER MEMBERS’’ after 
‘‘SERVICES AVAILABLE’’; and 
(B) in paragraph (1), by striking ‘‘sub-
section (b)’’ and inserting ‘‘subsection (d)’’; 
(2) by redesignating subsection (b) as subsection 
(d); and 
(3) by inserting after subsection (a) the following 
new subsections: 
‘‘(b) CARE RELATED
TO PREVENTION
OF PREG-
NANCY.—Female covered beneficiaries shall be entitled to 
care related to the prevention of pregnancy described in sub-
section (d)(3). 
‘‘(c) PROHIBITION ON COST-SHARING FOR CERTAIN 
SERVICES.—Notwithstanding section 1074g(a)(6), section 
1075, or section 1075a of this title or any other provision 
of law, cost-sharing may not be imposed or collected for care 
related to the prevention of pregnancy provided pursuant 
to subsection (a) or (b), including for any method of contra-
ception provided, whether provided through a facility of the 
uniformed services, the TRICARE retail pharmacy pro-
gram, or the national mail-order pharmacy program.’’. 
(b) CARE
RELATED
TO
PREVENTION
OF
PREG-
NANCY.—Subsection (d)(3) of such section, as redesignated 
by subsection (a)(2), is further amended by inserting before
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† HR 2810 EAS 
the period at the end the following: ‘‘(including all methods 
of contraception approved by the Food and Drug Adminis-
tration, contraceptive care (including with respect to inser-
tion, removal, and follow up), sterilization procedures, and 
patient education and counseling in connection therewith)’’. 
(c) CONFORMING AMENDMENT.—Section 1077(a)(13) 
of such title is amended by striking ‘‘section 1074d(b)’’ and 
inserting ‘‘section 1074d(d)’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2018. 
Subtitle B—Health Care 
Administration 
SEC. 721. MODIFICATION OF PRIORITY FOR EVALUATION 
AND TREATMENT OF INDIVIDUALS AT MILI-
TARY TREATMENT FACILITIES. 
Subsection (b) of section 717 of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114– 
328) is amended to read as follows: 
‘‘(b) PRIORITY OF COVERED BENEFICIARIES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the evaluation and treatment of covered 
beneficiaries at military treatment facilities shall be 
prioritized ahead of the evaluation and treatment of 
veterans and civilians at such facilities under sub-
section (a).
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‘‘(2) WAIVER.—The Secretary may waive the re-
quirement under paragraph (1) in order to provide 
timely evaluation and treatment for individuals who 
are— 
‘‘(A) severely wounded or injured by acts of 
terror that occur in the United States; or 
‘‘(B) residents of the United States who are 
severely wounded or injured by acts of terror 
outside the United States.’’. 
SEC. 722. SELECTION OF DIRECTORS OF MILITARY TREAT-
MENT FACILITIES AND TOURS OF DUTY OF 
SUCH DIRECTORS. 
(a) IN GENERAL.—Not later than January 1, 2019, 
the Secretary of Defense shall do the following: 
(1) Develop the common qualifications and core 
competencies required of military and civilian indi-
viduals for selection as directors of military treatment 
facilities. 
(2) Establish a minimum length for the tour of 
duty of a member of the Armed Forces serving as a 
director of a military treatment facility. 
(b) QUALIFICATIONS AND COMPETENCIES.— 
(1) STANDARDS.—In developing common quali-
fications and core competencies under subsection
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(a)(1), the Secretary shall include standards with re-
spect to the following: 
(A) Professional competence. 
(B) Moral and ethical integrity and char-
acter. 
(C) Formal education in healthcare execu-
tive leadership and healthcare management. 
(D) Such other matters as the Secretary 
considers appropriate. 
(2) OBJECTIVE.—The objective of the Secretary 
in developing such qualifications and competencies 
shall be to ensure that the individuals selected as di-
rectors of military treatment facilities are highly 
qualified to serve as health system executives in a 
medical treatment facility of the Armed Forces. 
(c) TOURS OF DUTY.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), in the case of a director of a military 
treatment facility who is a member of the Armed 
Forces, the length of the tour of duty of any such di-
rector assigned to such position after January 1, 
2019, may not be shorter than the longer of— 
(A) the length established pursuant to sub-
section (a)(2); or 
(B) three years.
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(2) WAIVER.—The Secretary may authorize a 
tour of duty of a member of the Armed Forces serving 
as a director of a military treatment facility of a 
shorter length than is otherwise provided for in para-
graph (1) if the Secretary determines, in the discre-
tion of the Secretary, that there is good cause for a 
tour of duty in such position of shorter length. Any 
such determination shall be made on a case-by-case 
basis. 
SEC. 723. CLARIFICATION OF ADMINISTRATION OF MILI-
TARY MEDICAL TREATMENT FACILITIES. 
Section 1073c(a) of title 10, United States Code, is 
amended— 
(1) in paragraph (1)(E), by striking ‘‘miliary’’ 
and inserting ‘‘military’’; 
(2) in paragraph (2), in the matter preceding 
subparagraph (A), by striking ‘‘commander of each 
military medical treatment facility’’ and inserting 
‘‘military or civilian director of each military med-
ical treatment facility, under the authority, direction, 
and control of the Director of the Defense Health 
Agency,’’; and 
(3) by adding at the end the following new para-
graph:
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‘‘(4) If the Secretary of Defense determines it appro-
priate, a military director (or any other senior military 
officer or officers) of a military medical treatment facility 
may be a commanding officer for purposes of chapter 47 
of this title (the Uniform Code of Military Justice) with 
respect to military personnel assigned to the military med-
ical treatment facility.’’. 
SEC. 724. MODIFICATION OF EXECUTION OF TRICARE CON-
TRACTING RESPONSIBILITIES. 
Subsection (b) of section 705 of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114– 
328) is amended to read as follows: 
‘‘(b) EXECUTION OF CONTRACTING RESPONSIBILITY.— 
With respect to any acquisition of managed care support 
services under the TRICARE program initiated after the 
date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2018, the Under Secretary of Defense 
for Acquisition and Sustainment shall serve as the author-
ity for decisions relating to such acquisition and shall be 
responsible for approving the acquisition strategy and con-
ducting pre-solicitation, pre-award, and post-award acqui-
sition reviews.’’.
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SEC. 725. PILOT PROGRAM ON ESTABLISHMENT OF INTE-
GRATED HEALTH CARE DELIVERY SYSTEMS. 
(a) IN GENERAL.—Beginning not later than one year 
after the date of the enactment of this Act, the Secretary 
of Defense, in consultation with the Secretary of Veterans 
Affairs and the Secretary of Health and Human Services, 
shall carry out a pilot program to establish integrated 
health care delivery systems among the military health sys-
tem, other Federal health systems, and private sector inte-
grated health systems. 
(b) DURATION OF PILOT PROGRAM.—The Secretary of 
Defense shall carry out the pilot program for a period of 
not less than five years. 
(c) IMPLEMENTATION OF PILOT PROGRAM.— 
(1) ESTABLISHMENT OF TASK FORCE.—The Sec-
retary shall establish a multi-disciplinary task force 
of Federal and private sector health care experts (in 
this section referred to as the ‘‘Task Force’’) to de-
velop a plan to implement the pilot program. 
(2) MEMBERSHIP OF TASK FORCE.— 
(A) IN GENERAL.—The Task Force shall be 
composed of senior health care representatives 
from— 
(i) the Department of Defense; 
(ii) the Department of Veterans Af-
fairs;
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(iii) the Centers for Medicare & Med-
icaid Services; 
(iv) 
high-performance, 
integrated 
health systems in the private sector; and 
(v) health information technology orga-
nizations in the private sector. 
(B) ADDITIONAL MEMBERS.—The Secretary 
may appoint additional members of the Task 
Force from the private sector as the Secretary 
considers appropriate. 
(3) SUBMITTAL OF PLAN.—Not later than 180 
days after the date of the enactment of this Act, the 
Task Force shall submit to the Secretary an imple-
mentation plan for the pilot program. 
(4) NONAPPLICABILITY
OF
FEDERAL
ADVISORY 
COMMITTEE ACT.—The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Task 
Force. 
(d) ELEMENTS.—The pilot program shall be developed 
and carried out as follows: 
(1) To create high-value integrated health sys-
tems that— 
(A) establish value-based models of reim-
bursement for health care providers in integrated 
health care delivery systems to promote medical
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innovation and create better health value for pa-
tients; 
(B) provide innovative health benefit design 
solutions to promote effective, efficient, and af-
fordable health care; and 
(C) tailor case management and care co-
ordination for high-need, high-cost patients. 
(2) To empower health care providers with real- 
time advanced information technology solutions— 
(A) to coordinate and manage health care 
services across the continuum of care; and 
(B) to leverage sophisticated data capture, 
cloud computing, and data analytical tools to 
provide predictive modeling capabilities for 
health care providers. 
(3) To empower patients with transparent infor-
mation on health care costs, quality outcomes, and 
safety within health care provider networks in high- 
value integrated health systems. 
(4) To provide incentives to patients and health 
care providers to prevent overuse of low-value health 
care services. 
(e) REPORTS.— 
(1) REPORT
ON
IMPLEMENTATION.—Not later 
than 270 days after the date of the enactment of this
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Act, the Secretary shall transmit to the Committees 
on Armed Services of the Senate and the House of 
Representatives the implementation plan submitted to 
the Secretary under subsection (c)(3). 
(2) FINAL REPORT.— 
(A) IN
GENERAL.—Not later than four 
years after the date that the pilot program be-
gins, the Secretary shall submit to the Commit-
tees on Armed Services of the Senate and the 
House of Representatives a report assessing the 
pilot program. 
(B) 
ELEMENTS.—The 
report 
submitted 
under subparagraph (A) shall provide the fol-
lowing: 
(i) An analysis of the impact of the 
pilot program on building sustainable inte-
grated health care delivery systems among 
the military health system, other Federal 
health systems, and private sector inte-
grated health systems. 
(ii) A determination of the extent to 
which value-based health care reimburse-
ment models create value for patients and 
the health systems participating in the pilot 
program.
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Subtitle C—Reports and Other 
Matters 
SEC. 731. EXTENSION OF AUTHORITY FOR JOINT DEPART-
MENT OF DEFENSE-DEPARTMENT OF VET-
ERANS AFFAIRS MEDICAL FACILITY DEM-
ONSTRATION FUND. 
Section 1704(e) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2573), as amended by section 722 of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Authoriza-
tion Act for Fiscal Year 2015 (Public Law 113–291), sec-
tion 723 of the National Defense Authorization Act for Fis-
cal Year 2016 (Public Law 114–92), and section 741(a) of 
the National Defense Authorization Act for Fiscal Year 
2017 (Public Law 114–328), is further amended by striking 
‘‘September 30, 2018’’ and inserting ‘‘September 30, 2019’’. 
SEC. 732. ADDITIONAL EMERGENCY USES FOR MEDICAL 
PRODUCTS TO REDUCE DEATHS AND SEVER-
ITY OF INJURIES CAUSED BY AGENTS OF 
WAR. 
Section 1107a of title 10, United States Code, is 
amended by adding at the end the following new subsection: 
‘‘(d) ADDITIONAL AUTHORITY TO REDUCE DEATHS 
AND SEVERITY
OF INJURIES CAUSED
BY AGENTS
OF 
WAR.—(1) In a case in which an emergency use of an un-
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approved product or an emergency unapproved use of an 
approved product cannot be authorized under section 564 
of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 
360bbb–3) because the emergency does not involve an actual 
or threatened attack with a biological, chemical, radio-
logical, or nuclear agent or agents, the Secretary of Defense 
may authorize an emergency use outside the United States 
of the product to reduce the number of deaths or the severity 
of harm to members of the armed forces (or individuals as-
sociated with deployed members of the armed forces) caused 
by a risk or agent of war. 
‘‘(2) Except as otherwise provided in this subsection, 
an authorization by the Secretary under paragraph (1) 
shall have the same effect with respect to the armed forces 
as an emergency use authorization under section 564 of the 
Federal Food, Drug and Cosmetic Act (21 U.S.C. 360bbb– 
3). 
‘‘(3) The Secretary may issue an authorization under 
paragraph (1) with respect to the emergency use of an un-
approved product or the emergency unapproved use of an 
approved product only if— 
‘‘(A) the committee established under paragraph 
(5) has recommended that the Secretary issue the au-
thorization; and
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‘‘(B) the Assistant Secretary of Defense for 
Health Affairs makes a written determination, after 
consultation with the Commissioner of Food and 
Drugs, that, based on the totality of scientific evidence 
available to the Assistant Secretary, criteria com-
parable to those specified in section 564(c) of the Fed-
eral Food, Drug and Cosmetic Act (21 U.S.C. 
360bbb–3(c)) have been met. 
‘‘(4) With respect to the emergency use of an unap-
proved product or the emergency unapproved use of an ap-
proved product under this subsection, the Secretary of De-
fense shall establish such scope, conditions, and terms under 
this subsection as the Secretary considers appropriate, in-
cluding scope, conditions, and terms comparable to those 
specified in section 564 of the Federal Food, Drug and Cos-
metic Act (21 U.S.C. 360bbb–3). 
‘‘(5)(A) There is established in the Department of De-
fense a Department of Defense Emergency Use Authoriza-
tion Committee (in this paragraph referred to as the ‘Com-
mittee’) to advise the Assistant Secretary of Defense for 
Health Affairs on proposed authorizations under this sub-
section. 
‘‘(B) Members of the Committee shall be appointed by 
the Secretary of Defense and shall consist of prominent 
health care professionals who are not employees of the De-
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partment of Defense (other than for purposes of serving as 
a member of the Committee). 
‘‘(C) The Committee may be established as a sub-
committee of another Federal advisory committee. 
‘‘(6) In this subsection: 
‘‘(A) The term ‘biological product’ has the mean-
ing given that term in section 351(i) of the Public 
Health Service Act (42 U.S.C. 262(i)). 
‘‘(B) The terms ‘device’ and ‘drug’ have the 
meanings given those terms in section 201 of the Fed-
eral Food, Drug and Cosmetic Act (21 U.S.C. 321). 
‘‘(C) The term ‘product’ means a drug, device, or 
biological product. 
‘‘(D) The terms ‘unapproved product’ and ‘unap-
proved use of an approved product’ have the mean-
ings given those terms in section 564(a)(4) of the Fed-
eral Food, Drug and Cosmetic Act (21 U.S.C. 
360bbb–3(a)(4)).’’. 
SEC. 733. PROHIBITION ON CONDUCT OF CERTAIN MEDICAL 
RESEARCH AND DEVELOPMENT PROJECTS. 
The Secretary of Defense and each Secretary of a mili-
tary department may not fund or conduct a medical re-
search and development project unless the Secretary funding 
or conducting the project—
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(1) submits to the Committees on Armed Services 
of the Senate and the House of Representatives a 
written certification that the project is designed to di-
rectly protect, enhance, or restore the health and safe-
ty of members of the Armed Forces; and 
(2) does not initiate the funding or conduct of 
such project until the date that is 90 days after the 
submittal of such written certification. 
SEC. 734. MODIFICATION OF DETERMINATION OF AVERAGE 
WAIT TIMES AT URGENT CARE CLINICS AND 
PHARMACIES AT MILITARY MEDICAL TREAT-
MENT FACILITIES UNDER PILOT PROGRAM. 
(a) URGENT CARE CLINICS.—Subsection (c)(2) of sec-
tion 744 of the National Defense Authorization Act for Fis-
cal Year 2017 (Public Law 114–328) is amended to read 
as follows: 
‘‘(2) DETERMINATION.—In carrying out para-
graph (1), the Secretary shall determine the average 
wait time to display under such paragraph by using 
a formula derived from best practices in the health 
care industry.’’. 
(b) PHARMACIES.—Subsection (d)(2) of such section is 
amended to read as follows: 
‘‘(2) DETERMINATION.—In carrying out para-
graph (1), the Secretary shall determine the average
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wait time to display under such paragraph by using 
a formula derived from best practices in the health 
care industry.’’. 
SEC. 735. REPORT ON PLAN TO IMPROVE PEDIATRIC CARE 
AND RELATED SERVICES FOR CHILDREN OF 
MEMBERS OF THE ARMED FORCES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report setting 
forth a plan of the Department of Defense to improve pedi-
atric care and related services for children of members of 
the Armed Forces. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include the following: 
(1) In order to ensure that children receive devel-
opmentally-appropriate and age-appropriate health 
care services from the Department, a plan to align 
preventive pediatric care under the TRICARE pro-
gram with— 
(A) standards for such care as required by 
the Patient Protection and Affordable Care Act 
(Public Law 111–148); 
(B) guidelines established for such care by 
the Early and Periodic Screening, Diagnosis,
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and Treatment program under the Medicaid pro-
gram carried out under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.); and 
(C) recommendations by organizations that 
specialize in pediatrics. 
(2) A plan to develop a uniform definition of 
‘‘pediatric medical necessity’’ for the Department that 
aligns with recommendations of organizations that 
specialize in pediatrics in order to ensure that a con-
sistent definition of such term is used in providing 
health care in military treatment facilities and by 
health care providers under the TRICARE program. 
(3) A plan to revise certification requirements 
for residential treatment centers of the Department to 
expand the access of children of members of the Armed 
Forces to services at such centers. 
(4) A plan to develop measures to evaluate and 
improve access to pediatric care, coordination of pedi-
atric care, and health outcomes for such children. 
(5) A plan to include an assessment of access to 
pediatric specialty care in the annual report to Con-
gress on the effectiveness of the TRICARE program. 
(6) A plan to improve the quality of and access 
to behavioral health care under the TRICARE pro-
gram for children of members of the Armed Forces,
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including intensive outpatient and partial hos-
pitalization services. 
(7) A plan to mitigate the impact of permanent 
changes of station and other service-related relocations 
of members of the Armed Forces on the continuity of 
health care services received by such children who 
have special medical or behavioral health needs. 
(8) A plan to mitigate deficiencies in data collec-
tion, data utilization, and data analysis to improve 
pediatric care and related services for children of 
members of the Armed Forces. 
(c) TRICARE PROGRAM DEFINED.—In this section, 
the term ‘‘TRICARE program’’ has the meaning given such 
term in section 1072 of title 10, United States Code. 
SEC. 736. INCLUSION OF GAMBLING DISORDER IN HEALTH 
ASSESSMENTS AND RELATED RESEARCH EF-
FORTS OF THE DEPARTMENT OF DEFENSE. 
(a) ANNUAL PERIODIC HEALTH ASSESSMENT.—The 
Secretary of Defense shall incorporate medical screening 
questions specific to gambling disorder into the Annual 
Periodic Health Assessment (DD Form 3024) conducted by 
the Department of Defense for members of the Armed Forces. 
(b) RESEARCH EFFORTS.—The Secretary shall incor-
porate into ongoing research efforts of the Department ques-
tions on gambling disorder, as appropriate, including by
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restoring such questions into the Health Related Behaviors 
Survey of Active Duty Military Personnel. 
SEC. 737. FEASIBILITY STUDY ON CONDUCT OF PILOT PRO-
GRAM ON MENTAL HEALTH READINESS OF 
PART-TIME MEMBERS OF THE RESERVE COM-
PONENTS OF THE ARMED FORCES. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
shall conduct a feasibility study and cost estimate for a 
pilot program that uses predictive analytics and screening 
to identify mental health risk and provide early, targeted 
intervention for part-time members of the reserve compo-
nents of the Armed Forces to improve readiness and mission 
success. 
(b) ELEMENTS.—The feasibility study conducted 
under subsection (a) shall include elements to assess the fol-
lowing with respect to the pilot program studied under such 
subsection: 
(1) The anticipated improvement in quality of 
behavioral health services for part-time members of 
the reserve components of the Armed Forces and the 
impact of such improvement in quality of behavioral 
health services on their families and employers.
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(2) The anticipated impact on the culture sur-
rounding behavioral health treatment and help-seek-
ing behavior. 
(3) The feasibility of embedding mental health 
professionals with units that— 
(A) perform core mission sets and capabili-
ties; and 
(B) carry out high-risk and high-demand 
missions. 
(4) The particular preventative mental health 
needs of units at different states of their operational 
readiness cycle. 
(5) The need for additional personnel of the De-
partment of Defense to implement the pilot program. 
(6) The cost of implementing the pilot program 
throughout the reserve components of the Armed 
Forces. 
(7) The benefits of an integrated operational 
support team for the Air National Guard and Army 
National Guard units. 
(c) COMPARISON TO FULL-TIME MEMBERS OF RE-
SERVE COMPONENTS.—As part of the feasibility study con-
ducted under subsection (a), the Secretary shall assess the 
mental health risk of part-time members of the reserve com-
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ponents of the Armed Forces as compared to full-time mem-
bers of the reserve components of the Armed Forces. 
(d) USE OF EXISTING MODELS.—In conducting the 
feasibility study under subsection (a), the Secretary shall 
make use of existing models for preventative mental health 
care, to the extent practicable, such as the approach devel-
oped by the United States Air Force School of Aerospace 
Medicine. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. REPEAL OF TEMPORARY SUSPENSION OF PUBLIC- 
PRIVATE COMPETITIONS FOR CONVERSION 
OF DEPARTMENT OF DEFENSE FUNCTIONS 
TO PERFORMANCE BY CONTRACTORS. 
Effective as of the date that is one year after the date 
of the enactment of this Act, section 325 of the National 
Defense Authorization Act for Fiscal Year 2010 (Public 
Law 111–84; 123 Stat. 2253) is repealed.
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SEC. 802. TECHNICAL AND CONFORMING AMENDMENTS RE-
LATED TO PROGRAM MANAGEMENT PROVI-
SIONS. 
(a) REPEAL OF DUPLICATIVE PROVISION RELATED TO 
PROGRAM AND PROJECT MANAGEMENT.—Subsection (c) of 
section 503 of title 31, United States Code, as added by 
section 861(a)(1) of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 
2298), is repealed. 
(b) REPEAL OF DUPLICATIVE PROVISION RELATED TO 
PROGRAM MANAGEMENT OFFICERS AND PROGRAM MAN-
AGEMENT POLICY COUNCIL.—Section 1126 of title 31, 
United States Code, as added by section 861(b)(1) of the 
National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328; 130 Stat. 2299), is repealed. 
(c) REPEAL OF OBSOLETE PROVISIONS.—Section 861 
of the National Defense Authorization Act for Fiscal Year 
2017 (Public Law 114–328; 130 Stat. 2299) is amended— 
(1) in subsection (a), by striking paragraphs (2) 
and (3); 
(2) in subsection (b), by striking paragraph (2); 
and 
(3) by striking subsections (c) and (d). 
SEC. 803. SHOULD-COST MANAGEMENT. 
(a) REQUIREMENT
FOR REGULATIONS.—Not later 
than 180 days after the date of the enactment of this Act,
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the Secretary of Defense shall amend the Defense Supple-
ment to the Federal Acquisition Regulation to provide for 
the appropriate use of the should-cost review process in a 
manner that is transparent, objective, and provides for the 
efficiency of the systems acquisition process in the Depart-
ment of the Defense. 
(b) REQUIRED ELEMENTS.—The regulations required 
under subsection (a) shall incorporate, at a minimum, the 
following elements: 
(1) A description of the features distinguishing a 
should-cost review and the analysis of program direct 
and indirect costs. 
(2) Establishment of a process for commu-
nicating with the contractor the elements of a pro-
posed should-cost review. 
(3) A method for ensuring that identified should- 
cost savings opportunities are based on accurate, com-
plete, and current information and are associated 
with specific engineering or business changes that can 
be quantified and tracked. 
(4) A description of the training, skills, and ex-
perience, including cross functional experience, that 
Department of Defense and contractor officials car-
rying out a should-cost review in subsection (a) 
should possess.
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(5) A method for ensuring appropriate collabora-
tion with the contractor throughout the review proc-
ess. 
(6) Establishment of review process requirements 
that provide for sufficient analysis and minimize any 
impact on program schedule. 
(7) A requirement that any separate audit or re-
view carried out in connection with the should-cost 
review be provided to the prime contractor under the 
program. 
SEC. 804. CLARIFICATION OF PURPOSE OF DEFENSE ACQUI-
SITION. 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall amend the Defense 
Federal Acquisition Regulation as appropriate to provide 
the following: 
(1) The Defense Acquisition System exists to 
manage the nation’s investments in technologies, pro-
grams, and product support necessary to achieve the 
National Security Strategy and support the United 
States Armed Forces. 
(2) The investment strategy of the Department of 
Defense shall be postured to support not only today’s 
force, but also the next force, and future forces beyond 
that.
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(3) The primary objective of Defense acquisition 
is to acquire quality products that satisfy user needs 
with measurable improvements to mission capability 
and operational support, in a timely manner, and at 
a fair and reasonable price. 
SEC. 805. DEFENSE POLICY ADVISORY COMMITTEE ON 
TECHNOLOGY. 
(a) ESTABLISHMENT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall form a committee of senior executives from 
United States firms in the national technology and indus-
trial base to meet with the Secretary, the Secretaries of the 
military departments, and members of the Joint Chiefs of 
Staff to exchange information, including, as appropriate, 
classified information, on technology threats to the national 
security of the United States and on the emerging tech-
nologies from the national technology and industrial base 
that may become available to counter such threats in a 
timely manner. 
(b) MEETINGS.—The defense policy advisory com-
mittee on technology formed pursuant to subsection (a) shall 
meet with the Secretary and the other Department of De-
fense officials specified in such subsection collectively at 
least once annually in each of fiscal years 2018 through
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2022. The Secretary of Defense shall provide the congres-
sional defense committees annual briefings on the meetings. 
(c) FEDERAL ADVISORY COMMITTEE ACT.—The Fed-
eral Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the defense policy advisory committee on tech-
nology established pursuant to this section. 
SEC. 806. REPORT ON EXTENSION OF DEVELOPMENT, AC-
QUISITION, AND SUSTAINMENT AUTHORITIES 
OF THE MILITARY DEPARTMENTS TO THE 
UNITED STATES SPECIAL OPERATIONS COM-
MAND. 
(a) REVIEW.—The Secretary of Defense shall carry out 
a review of the authorities available to the Secretaries of 
the military departments and the acquisition executives of 
the military departments for the development, acquisition, 
and sustainment of technology, equipment, and services for 
the military departments in order to determine the feasi-
bility and advisability of the provision of such authorities 
to the Commander of the United States Special Operations 
Command and the acquisition executive of the Command 
for the development, acquisition, and sustainment of special 
operations-peculiar technology, equipment, and services. 
(b) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall submit to 
the Committees on Armed Services of the Senate and the
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House of Representatives a report on the review required 
by subsection (a). The report shall include the following: 
(1) A description of the review. 
(2) An identification of the authorities the Sec-
retary recommends for provision to the Commander of 
the United States Special Operations Command and 
the acquisition executive of the Command as described 
in subsection (a), and recommendations for any 
modifications of such authorities that the Secretary 
considers appropriate for purposes of the United 
States Special Operations Command. 
(3) Such recommendations for legislative or ad-
ministrative action as the Secretary considers appro-
priate for the provision of authorities identified pur-
suant to paragraph (2) as described in subsection (a). 
(4) Such other matters as the Secretary considers 
appropriate in light of the review. 
SEC. 807. ENSURING TRANSPARENCY IN ACQUISITION PRO-
GRAMS. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish and implement a policy that will ensure the acquisi-
tion programs of major systems establish cost, schedule, and 
performance goals at the onset of the program. The policy 
shall also ensure that acquisition programs of major sys-
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tems report on the original cost, schedule, and performance 
goals throughout the program to ensure transparency. 
(b) MAJOR SYSTEM DEFINED.—In this section, the 
term ‘‘major system’’ has the meaning given the term in 
section 2302d of title 10, United States Code. 
Subtitle B—Amendments to General 
Contracting Authorities, Proce-
dures, and Limitations 
SEC. 811. WAIVER AUTHORITY FOR PURPOSES OF EXPAND-
ING COMPETITION. 
Section 2304 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(m) In the event the application of any provision of 
law results in only one responsible bidder for a contract, 
the Secretary of Defense may waive such provision of law 
(other than subsection (c)) for purposes of expanding com-
petition for the contract.’’. 
SEC. 812. INCREASED SIMPLIFIED ACQUISITION THRESH-
OLD APPLICABLE TO DEPARTMENT OF DE-
FENSE PROCUREMENTS. 
(a) INCREASED SIMPLIFIED ACQUISITION THRESH-
OLD.— 
(1) IN
GENERAL.—Chapter 137 of title 10, 
United States Code, is amended by adding at the end 
the following new section:
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‘‘§ 2339a. Simplified acquisition threshold 
‘‘Notwithstanding section 134 of title 41, the simplified 
acquisition threshold for the Department of Defense for pur-
poses of such section is $250,000.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
adding at the end the following new item: 
‘‘2339a. Simplified acquisition threshold.’’. 
(b) CONFORMING AMENDMENT.—Section 134 of title 
41, United States Code, is amended by striking ‘‘In division 
B’’ and inserting ‘‘Except as provided in section 2339a of 
title 10, in division B’’. 
SEC. 813. INCREASED THRESHOLD FOR COST OR PRICING 
DATA AND TRUTH IN NEGOTIATIONS RE-
QUIREMENTS. 
Section 2306a of title 10, United States Code, is 
amended by striking ‘‘$500,000’’ each place it appears and 
inserting ‘‘$1,000,000’’. 
SEC. 814. CONTRACT AUTHORITY FOR ADVANCED DEVELOP-
MENT OF INITIAL OR ADDITIONAL PROTO-
TYPE UNITS. 
(a) PERMANENT AUTHORITY.— 
(1) IN
GENERAL.—Chapter 137 of title 10, 
United States Code, is amended by inserting after sec-
tion 2302d the following new section:
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‘‘§ 2302e. Contract authority for advanced develop-
ment of initial or additional prototype 
units 
‘‘(a) AUTHORITY.—A contract initially awarded from 
the competitive selection of a proposal resulting from a gen-
eral solicitation referred to in section 2302(2)(B) of this 
title may contain a contract line item or contract option 
for— 
‘‘(1) the provision of advanced component devel-
opment, prototype, or initial production of technology 
developed under the contract; or 
‘‘(2) the delivery of initial or additional items if 
the item or a prototype thereof is created as the result 
of work performed under the contract. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MINIMAL AMOUNT.—A contract line item or 
contract option described in subsection (a)(2) shall re-
quire the delivery of the minimal amount of initial 
or additional items to allow for the timely competi-
tive solicitation and award of a follow-on develop-
ment or production contract for those items. 
‘‘(2) TERM.—A contract line item or contract 
option described in subsection (a) shall be for a term 
of not more than 2 years. 
‘‘(3) DOLLAR
VALUE
OF
WORK.—The dollar 
value of the work to be performed pursuant to a con-
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tract line item or contract option described in sub-
section (a) may not exceed the amount of expenditure 
consistent with a major system, as defined in section 
2302d of this title. 
‘‘(4) APPLICABILITY.—The authority provided in 
subsection (a) applies only to the Secretary of De-
fense, the Secretary of the Army, the Secretary of the 
Navy, and the Secretary of the Air Force.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
inserting after the item relating to section 2302d the 
following new item: 
‘‘2302e. Contract authority for advanced development of initial or additional pro-
totype units.’’. 
(b) MODIFICATION
OF COMPETITIVE PROCEDURES 
DEFINITION.—Section 2302(2)(B) of title 10, United States 
Code, is amended by striking ‘‘basic research proposals’’ 
and inserting ‘‘proposals for basic research, applied re-
search, advanced research, or development projects’’. 
(c) REPEAL OF OBSOLETE AUTHORITY.—Section 819 
of the National Defense Authorization Act for Fiscal Year 
2010 (Public Law 107–314; 10 U.S.C. 2302 note) is hereby 
repealed.
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SEC. 815. TREATMENT OF INDEPENDENT RESEARCH AND 
DEVELOPMENT COSTS ON CERTAIN CON-
TRACTS. 
(a) THRESHOLD FOR ESTABLISHING ADVISORY PANEL 
RELATED TO GOAL FOR REIMBURSABLE BID AND PRO-
POSAL COSTS.—Section 2372a(d)(1) of title 10, United 
States Code, as added by section 824(b)(1) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328), is amended by striking ‘‘If the Department 
of Defense exceeds the goal established under subsection (c) 
for a fiscal year, within 180 days after exceeding the goal’’ 
and inserting ‘‘If the amount of reimbursable bid and pro-
posal costs paid by the Department of Defense for a fiscal 
year exceeds .75 percent of the total aggregate industry sales 
to the Department for such fiscal year, within 180 days 
of exceeding such threshold’’. 
(b) INDEPENDENT RESEARCH
AND DEVELOPMENT 
COSTS: ALLOWABLE COSTS.—Section 2372(d) of title 10, 
United States Code, as amended by section 824(a)(1) of the 
National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328), is further amended by striking ‘‘sub-
section (c)(3)(A)’’ and inserting ‘‘subsection (c)(2)(A)’’. 
SEC. 816. NON-TRADITIONAL CONTRACTOR DEFINITION. 
Section 2302(9) of title 10, United States Code, is 
amended by striking ‘‘means an entity that is not currently 
performing’’ and inserting ‘‘means a specific business unit
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or function with a unique entity identifier that is not cur-
rently performing’’. 
SEC. 817. REPEAL OF DOMESTIC SOURCE RESTRICTION RE-
LATED TO WEARABLE ELECTRONICS. 
Section 2533a(b)(2) of title 10, United States Code, is 
amended by inserting ‘‘(excluding wearable electronics)’’ 
after ‘‘Hand or measuring tools’’. 
SEC. 818. USE OF OUTCOME-BASED AND PERFORMANCE- 
BASED REQUIREMENTS FOR SERVICES CON-
TRACTS. 
(a) JUSTIFICATION REQUIREMENT FOR USE OF PER-
SONNEL AND LABOR HOUR REQUIREMENTS.—The Depart-
ment of Defense may not enter into a contract for the pro-
curement of services valued in excess of $10,000,000 based 
on specific descriptive personnel and labor hour require-
ments unless the program manager and contracting officer 
first submit to the Under Secretary of Defense for Acquisi-
tion and Sustainment a written justification including the 
reasons for basing the contract on those requirements in-
stead of outcome- or performance-based requirements. 
(b) COMPTROLLER GENERAL REPORT.—Not later than 
two years after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the congressional defense committees a report on justifica-
tions submitted pursuant to subsection (a). The report shall
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review the adequacy of the justifications and identify any 
reoccurring obstacles to the use of outcome- and perform-
ance-based requirements instead of specified personnel and 
labor hour requirements for purposes of awarding services 
contracts. 
(c) SUNSET.—The requirements under this section 
shall terminate at the close of September 30, 2022. 
SEC. 819. PILOT PROGRAM FOR LONGER TERM MULTIYEAR 
SERVICE CONTRACTS. 
(a) IN GENERAL.—The Secretary of Defense may use 
the authority under subsection (a) of section 2306c of title 
10, United States Code, to enter into up to five contracts 
for periods of not more than 10 years for services described 
in subsection (b) of such section. Each contract entered into 
pursuant to this subsection may be extended for up to five 
additional one-year terms. 
(b) STUDY.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Secretary of De-
fense shall enter into an agreement with an inde-
pendent organization with relevant expertise to study 
best practices and lessons learned from using services 
contracts for periods longer than five years by com-
mercial companies, foreign governments, and State 
governments, as well as service contracts for periods
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longer than five years used by the Federal Govern-
ment, such as Energy Savings Performance Con-
tracts. 
(2) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a report on the study conducted under para-
graph (1). 
(c) COMPTROLLER GENERAL REPORT.—Not later than 
two years after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the congressional defense committees a report on the pilot 
program carried out under this section. 
SEC. 820. IDENTIFICATION OF COMMERCIAL SERVICES. 
Section 876 of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2311) 
is amended— 
(1) by striking ‘‘Not later than’’ and inserting 
‘‘(a) IN GENERAL.—Not later than’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) 
IDENTIFICATION
OF
INDUSTRY
SUBCAT-
EGORIES.—In preparing the guidance required under sub-
section (a), the Secretary shall identify those industry sub-
categories in facilities-related services, knowledge-based
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services (except engineering services), construction services, 
medical services, or transportation services in which there 
are significant numbers of commercial services providers 
able to meet the requirements of the Department of De-
fense.’’. 
SEC. 821. GOVERNMENT ACCOUNTABILITY OFFICE BID PRO-
TEST REFORMS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, as amended by section 812, is further amended 
by adding at the end the following new section: 
‘‘§ 2340. Government Accountability Office bid protests 
‘‘(a) PAYMENT OF COSTS FOR DENIED PROTESTS.— 
‘‘(1) IN GENERAL.—A contractor who files a pro-
test described under paragraph (2) with the Govern-
ment Accountability Office on a contract with the De-
partment of Defense shall pay to the Department of 
Defense costs incurred for processing a protest at the 
Government Accountability Office and the Depart-
ment of Defense. 
‘‘(2) COVERED PROTESTS.—A protest described 
under this paragraph is a protest— 
‘‘(A) all of the elements of which are denied 
in an opinion issued by the Government Ac-
countability Office; and
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‘‘(B) filed by a party with revenues in ex-
cess of $100,000,000 during the previous year. 
‘‘(b) WITHHOLDING OF PAYMENTS ABOVE INCURRED 
COSTS OF INCUMBENT CONTRACTORS.— 
‘‘(1) IN GENERAL.—Contractors who file a pro-
test on a contract on which they are the incumbent 
contractor shall have all payments above incurred 
costs withheld on any bridge contracts or temporary 
contract extensions awarded to the contractor as a re-
sult of a delay in award resulting from the filing of 
such protest. 
‘‘(2) DISPOSITION
OF
WITHHELD
PAYMENTS 
ABOVE INCURRED COSTS.— 
‘‘(A) 
RELEASE
TO
INCUMBENT
CON-
TRACTOR.—All payments above incurred costs of 
a protesting incumbent contractor withheld pur-
suant to paragraph (1) shall be released to the 
protesting incumbent contractor if— 
‘‘(i) the solicitation that is the subject 
of the protest is cancelled and no subsequent 
request for proposal is released or planned 
for release; or 
‘‘(ii) if the Government Accountability 
Office issues an opinion that upholds any of 
the protest grounds filed under the protest.
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‘‘(B) RELEASE TO AWARDEE.—Except for 
the exceptions set forth in subparagraph (A), all 
payments above incurred costs of a protesting in-
cumbent contractor withheld pursuant to para-
graph (1) shall be released to the contractor that 
was awarded the protested contract prior to the 
protest. 
‘‘(C) RELEASE
TO
DEPARTMENT
OF
DE-
FENSE IN EVENT OF NO CONTRACT AWARD.—Ex-
cept for the exceptions set forth in subparagraph 
(A), if a protested contract for which payments 
above incurred costs are withheld under para-
graph (1) is not awarded to a contractor, the 
withheld payments shall be released to the De-
partment of Defense and deposited into an ac-
count that can be used by the Department to off-
set costs associated with Government Account-
ability Office bid protests.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
such chapter, as amended by section 812(a)(2) of this Act, 
is further amended by inserting after the item relating to 
section 2339a the following new item: 
‘‘2340. Government Accountability Office bid protests.’’. 
SEC. 822. ENHANCED POST-AWARD DEBRIEFING RIGHTS. 
(a) RELEASE OF CONTRACT AWARD INFORMATION.— 
Not later than 120 days after the date of the enactment of
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† HR 2810 EAS 
this Act, the Secretary of Defense shall revise the Depart-
ment of Defense Supplement to the Federal Acquisition Reg-
ulation to require that all required post-award debriefings 
must provide detailed and comprehensive statements of the 
agency’s rating for each evaluation criteria and of the agen-
cy’s overall award decision. With regard to protecting the 
confidential and proprietary information of other offerors, 
the revision shall encourage the release to the company of 
all information that otherwise would be releaseable in the 
course of a bid protest challenge to an award. At a min-
imum, the revisions shall include— 
(1) a requirement for disclosure of the agency’s 
written source selection award determination, re-
dacted if necessary to protect other offerors’ confiden-
tial and proprietary information; 
(2) a requirement for a combined written and 
oral debriefing for all contract awards and task or de-
livery orders valued at $10,000,000 or higher; 
(3) a requirement for an option, at an offerors’ 
election, for access to an unredacted copy of the source 
selection award determination and the supporting 
agency record for outside counsel or other appropriate 
outside representative for all contract awards and 
task or delivery orders valued at $10,000,000 or high-
er;
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(4) provisions ensuring that both losing and 
winning offerors are entitled to the applicable en-
hanced post-award debriefing rights; and 
(5) robust procedures, consistent with section 
2305(b)(5)(C) of title 10, United States Code, and sec-
tion 15.506(e) of the Federal Acquisition Regulation, 
to protect the confidential and proprietary informa-
tion of other offerors. 
(b) OPPORTUNITY FOR FOLLOW-UP QUESTIONS.—Sec-
tion 2305(b)(5) of title 10, United States Code, is amend-
ed— 
(1) by redesignating subparagraphs (C), (D), 
and (E) as subparagraphs (D), (E), and (F), respec-
tively; 
(2) in subparagraph (B)— 
(A) in clause (v), by striking ‘‘; and’’ and 
inserting a semicolon; 
(B) in clause (vi), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(vii) an opportunity for a disappointed of-
feror to submit within two business days of re-
ceiving a post-award debriefing additional, fol-
low-up questions related to the debriefing.’’; and
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(3) by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) The agency shall respond in writing to ad-
ditional, follow-up questions submitted under sub-
paragraph (B) within five business days. The debrief-
ing will not be considered concluded until the agency 
delivers its written responses to the disappointed of-
feror.’’. 
(c) COMMENCEMENT
OF POST-BRIEFING PERIOD.— 
Section 3553(d)(4) of title 31, United States Code, is 
amended— 
(1) by redesignating subparagraphs (A) and (B) 
as clauses (i) and (ii) respectively; 
(2) by striking ‘‘The period’’ and inserting ‘‘(A) 
The period’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) For procurements conducted by any compo-
nent of the Department of Defense, the five-day post- 
debriefing period does not commence until the day the 
Government delivers to a disappointed offeror the 
written responses to any questions submitted pursu-
ant to section 2305(5)(B)(vii) of title 10.’’. 
(d) DECISIONS ON PROTESTS.—Section 3554(a)(1) of 
title 31, United States Code, is amended by striking the
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† HR 2810 EAS 
period at the end and inserting the following: ‘‘for all pro-
tests arising from agencies outside the Department of De-
fense and within 65 days after the date the protest is sub-
mitted to the Comptroller General for all protests arising 
from the Department of Defense and its subordinate agen-
cies. In protests arising from the Department of Defense 
and its subordinate agencies which present unusually com-
plex issues or large agency records, the Comptroller General 
may extend the time for decision but in no event later than 
100 days after the protest is submitted.’’. 
SEC. 823. LIMITATION ON UNILATERAL DEFINITIZATION. 
(a) LIMITATION.—Section 2326 of title 10, United 
States Code, is amended— 
(1) by redesignating subsections (c), (d), (e), (f), 
(g), (h), and (i) as subsections (d), (e), (f), (g), (h), 
(i), and (j) respectively; and 
(2) by inserting after subsection (b) the following 
new subsection: 
‘‘(c) LIMITATION ON UNILATERAL DEFINITIZATION BY 
THE CONTRACTING OFFICER.—The following limitation ap-
plies to all undefinitized contractual actions with a not to 
exceed value of $50,000,000 or greater: 
‘‘(1) If agreement is not reached on contractual 
terms, specifications, and price by a date certain, as 
required under subsection (b)(1), the contracting offi-
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cer may not unilaterally definitize those terms, speci-
fications and price over the objection of the contractor 
until— 
‘‘(A) the head of the agency approves the 
definitization in writing; 
‘‘(B) the contracting officer provides the 
written approval to the contractor; and 
‘‘(C) the head of the agency notifies the con-
gressional defense committees of the approval. 
‘‘(2) The contract modification unilaterally de-
finitizing the action shall not take effect until 60 cal-
endar days after the congressional defense committees 
have been notified under subparagraph (C) of such 
paragraph.’’. 
(b) CONFORMING REGULATIONS.—Not later than 120 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall revise the Department of Defense 
Supplement to the Federal Acquisition Regulations to con-
form with the amendments made by subsection (a).
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SEC. 824. RESTRICTION ON USE OF REVERSE AUCTIONS 
AND LOWEST PRICE TECHNICALLY ACCEPT-
ABLE CONTRACTING METHODS FOR SAFETY 
EQUIPMENT. 
(a) IN GENERAL.—Section 814 of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114– 
328) is amended— 
(1) in the section heading, by inserting ‘‘AND 
SAFETY EQUIPMENT’’ after ‘‘PERSONAL PROTEC-
TIVE EQUIPMENT’’; and 
(2) by inserting ‘‘and safety equipment’’ after 
‘‘personal protective equipment’’. 
(b) CONFORMING AMENDMENTS.—The tables of sec-
tions in section 2(b) of such Act and at the beginning of 
title VIII of such Act are amended in the item relating to 
section 814 by inserting ‘‘and safety equipment’’ after ‘‘per-
sonal protective equipment’’. 
SEC. 825. USE OF LOWEST PRICE TECHNICALLY ACCEPT-
ABLE SOURCE SELECTION PROCESS. 
(a) ADDITIONAL REQUIREMENTS.—Subsection (b) of 
section 813 of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328) is amended— 
(1) in paragraph (5), by striking ‘‘; and’’ and 
inserting a semicolon; 
(2) in paragraph (6), by striking the period at 
the end and inserting a semicolon; and
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(3) by adding at the end the following new para-
graphs: 
‘‘(7) the Department of Defense would not realize 
any additional innovation or future technological ad-
vantage by using a different methodology; and 
‘‘(8) the items procured are predominantly ex-
pendable in nature, non-technical, or a short life ex-
pectancy or short shelf life.’’. 
(b) REPORTING REQUIREMENT.—Subsection (d) of 
such section is amended by striking ‘‘contract exceeding 
$10,000,000’’ 
and 
inserting 
‘‘contract 
exceeding 
$5,000,000’’. 
SEC. 826. MIDDLE TIER OF ACQUISITION FOR RAPID PROTO-
TYPE AND RAPID FIELDING. 
(a) ELIMINATION OF COST-SHARING REQUIREMENT.— 
Section 804(c)(2) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 
note) is amended— 
(1) by striking subparagraph (C); and 
(2) by redesignating subparagraphs (D) and (E) 
as subparagraphs (C) and (D), respectively. 
(b) USE
OF SIMPLIFIED PROCEDURES.—Not later 
than 180 days after the date of the enactment of this Act, 
the Defense Acquisition Regulation Supplement shall be 
amended to provide for special simplified procedures for
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† HR 2810 EAS 
purchases of property and services under the rapid proto-
typing and rapid fielding programs established under sec-
tion 804 of the National Defense Authorization Act for Fis-
cal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 note). 
SEC. 827. ELIMINATION OF COST UNDERRUNS AS FACTOR 
IN CALCULATION OF PENALTIES FOR COST 
OVERRUNS. 
(a) IN GENERAL.—Section 828 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 10 U.S.C. 2430 note) is amended— 
(1) in subsection (a), by striking ‘‘fiscal year 
2015’’ and inserting ‘‘fiscal years 2018, 2019, 2020, 
2021, and 2022’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘or 
underrun’’; 
(B) in paragraph (2), by striking ‘‘or 
underruns’’; 
(C) in paragraph (3)— 
(i) by striking ‘‘and cost underruns’’; 
and 
(ii) by striking ‘‘or underruns’’; and 
(D) in paragraph (4), by striking ‘‘, except 
that the cost overrun penalty may not be a nega-
tive amount’’; and
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(3) in subsection (c), by striking ‘‘each fiscal 
year beginning with fiscal year 2015’’ and inserting 
‘‘fiscal years 2018, 2019, 2020, 2021, and 2022’’. 
(b) PRIOR FISCAL YEARS.—The requirements of sec-
tion 828 of the National Defense Authorization Act for Fis-
cal Year 2016 (Public Law 114–92; 10 U.S.C. 2430 note), 
as in effect on the day before the date of the enactment of 
this Act, shall continue to apply with respect to fiscal years 
beginning on or before October 1, 2016. 
SEC. 828. CONTRACT CLOSEOUT AUTHORITY. 
Section 836(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2017 (Public Law 114–328; 130 
Stat. 2286) is amended by striking ‘‘entered into prior to 
fiscal year 2000’’ and inserting ‘‘entered into at least 17 
years before the current fiscal year’’. 
SEC. 829. SERVICE CONTRACTS OF THE DEPARTMENT OF 
DEFENSE. 
(a) INCLUSION OF CERTAIN INFORMATION IN FUTURE- 
YEARS DEFENSE PROGRAM.—Each future-years defense 
program submitted to Congress pursuant to section 221of 
title 10, United States Code, for a fiscal year after fiscal 
year 2018 shall include an estimate of the cost and number 
of service contracts of the Department of Defense for each 
fiscal year covered by the future-years defense program. The 
estimate shall be set forth for the Department of Defense
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† HR 2810 EAS 
as a whole and separately for each department, agency, or-
ganization, and element of the Department anticipated to 
use service contracts during the fiscal years covered by the 
future-years defense program concerned. 
(b) REQUIREMENT FOR CERTIFICATION AND BRIEF-
ING.—No study or competition regarding a public-private 
competition for the conversion to performance by a con-
tractor for any function performed by Department of De-
fense civilian employees may be begun or announced pursu-
ant to section 2461 of title 10, United States Code, or other-
wise pursuant to Office of Management and Budget Cir-
cular A–76, until such time as— 
(1) the future-years defense program submitted 
to Congress includes the information described in sub-
section (a); or 
(2) the Secretary of Defense certifies that the De-
partment has a plan to provide such information by 
the next fiscal year. 
SEC. 830. DEPARTMENT OF DEFENSE CONTRACTOR WORK-
PLACE SAFETY AND ACCOUNTABILITY. 
(a) IDENTIFICATION OF KNOWN WORKPLACE SAFETY 
AND HEALTH VIOLATIONS.— 
(1) IN GENERAL.—A contracting officer, prior to 
awarding or renewing a covered contract, shall, as 
part of the responsibility determination, consider any
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(2) CLERICAL AMENDMENT.—Effective February 
1, 2018, the table of sections at the beginning of chap-
ter 4 of such title is amended by striking the item re-
lating to section 132a and inserting the following new 
item: 
‘‘132a. Chief Management Officer.’’. 
(b) CONFORMING REPEAL OF PRIOR AUTHORITIES ON 
CMO.— 
(1) IN
GENERAL.—Effective on January 31, 
2018, subsection (c) of section 901 of the National De-
fense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2341; 10 U.S.C. 131 note) is 
repealed, and the amendments to be made by para-
graph (4) of that subsection shall not be made. 
(2) FURTHER CONFORMING AMENDMENTS.—Ef-
fective on February 1, 2018, section 132 of title 10, 
United States Code, is amended— 
(A) by striking subsection (c); and 
(B) by redesignating subsection (d) as sub-
section (c). 
(c) CONFORMING AMENDMENTS ON PRECEDENCE IN 
DOD.—Effective on February 1, 2018, and immediately 
after the coming into effect of the amendments made by sec-
tion 901 of the National Defense Authorization Act for Fis-
cal Year 2017—