‘‘(4) identify additional major system compo-
nents that may be added later in the life cycle of the 
major system platform; and 
‘‘(5) clearly describe how intellectual property 
and related issues, such as data deliverables and li-
cense rights, that are necessary to support a mod-
ular open system architecture will be addressed. 
‘‘(d) REQUEST FOR PROPOSALS.—The milestone de-
cision authority for a major defense acquisition program 
shall ensure that a request for proposals for the develop-
ment or production phases of the program shall address 
the modular open system architecture to be used. 
‘‘(e) MILESTONE B.—A major defense acquisition 
program may not receive Milestone B approval under sec-
tion 2366b of this title until the milestone decision author-
ity determines in writing that— 
‘‘(1) the program incorporates a modular open 
system architecture with clearly defined major sys-
tem interfaces between the major system platform 
and major system components to be developed under 
the program; 
‘‘(2) such major system interfaces are con-
sistent with the widely supported and consensus- 
based standards that exist at the time of the mile-
stone decision, unless such standards are unavailable 
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or unsuitable for particular major system interfaces; 
and 
‘‘(3) the Government has arranged to obtain 
appropriate and necessary intellectual property 
rights with respect to such major system interfaces 
upon completion of the development of the major 
system platform. 
‘‘§ 2446c. Requirements relating to availability of 
major system interfaces and support for 
modular open system architecture 
‘‘The Secretary of each military department shall— 
‘‘(1) coordinate with the other military depart-
ments, the defense agencies, defense and other pri-
vate sector entities, and national standards-setting 
organizations with respect to the identification, de-
velopment, and maintenance of major system inter-
faces and standards for use in major system plat-
forms, where practicable; 
‘‘(2) ensure that major system interfaces incor-
porate commercial standards to the maximum extent 
practicable; 
‘‘(3) ensure sufficient systems engineering and 
development expertise and resources are available to 
support modular open system architecture in re-
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quirements development and acquisition program 
planning; 
‘‘(4) ensure that necessary planning, program-
ming, and budgeting resources are provided to iden-
tify, develop, and maintain modular open system ar-
chitecture and associated major system interfaces; 
and 
‘‘(5) ensure adequate training in modular open 
system architecture is provided to members of the 
requirements and acquisition workforce. 
‘‘§ 2446d. Requirement to include modular open sys-
tem architecture in Selected Acquisition 
Reports 
‘‘For each major defense acquisition program that re-
ceives Milestone B approval after October 1, 2018, a de-
scription of the key elements of the modular open system 
architecture or, if a modular open system architecture was 
not used, the rationale for not using such an architecture, 
shall be submitted to the congressional defense committees 
with the first Selected Acquisition Report required under 
section 2432 of this title for the program.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for title 10, United States Code, is amended by adding 
after the item relating to chapter 144A the following new 
item: 
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‘‘144B. Weapon Systems Development and Related Mat-
ters ..............................................................................2446a’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
2366b(a)(3) of such title is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (K); and 
(2) by inserting after subparagraph (L) the fol-
lowing new subparagraph: 
‘‘(M) the requirements of section 2446b(e) 
of this title are met; and’’. 
(d) EFFECTIVE DATE.—Subchapter I of chapter 
144B of title 10, United States Code, as added by sub-
section (a), shall take effect on October 1, 2016. 
SEC. 3. WEAPON SYSTEM COMPONENT DEVELOPMENT, 
PROTOTYPING, AND DEPLOYMENT. 
(a) IN GENERAL.—Chapter 144B of title 10, United 
States Code, as added by section 2, is further amended 
by adding at the end the following new subchapter: 
‘‘SUBCHAPTER II—WEAPON SYSTEM COMPO-
NENT DEVELOPMENT, PROTOTYPING, AND 
DEPLOYMENT 
‘‘Sec. 
‘‘2447a. Technology development in the acquisition of major weapon systems. 
‘‘2447b. Weapon system component prototype projects: display of budget infor-
mation. 
‘‘2447c. Weapon system component prototype projects: oversight. 
‘‘2447d. Requirements and limitations for weapon system component prototype 
projects. 
‘‘2447e. Mechanisms to speed deployment of successful weapon system compo-
nent prototypes. 
‘‘2447f. Definition of weapon system component. 
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‘‘§ 2447a. Technology development in the acquisition 
of major weapon systems 
‘‘Technology shall be developed in a major defense 
acquisition program that is initiated after October 1, 
2018, only if the milestone decision authority for the pro-
gram determines with a high degree of confidence that 
such development will not delay the fielding target of the 
program. If the milestone decision authority does not 
make such determination for a major system component 
being developed under the program, the milestone decision 
authority shall ensure that technology related to the major 
system component shall be sufficiently matured separate 
from the major defense acquisition program using the 
prototyping authorities of this section or other authorities, 
as appropriate. 
‘‘§ 2447b. 
Weapon 
system 
component 
prototype 
projects: display of budget information 
‘‘(a) REQUIREMENTS FOR BUDGET DISPLAY.—In the 
defense budget materials for any fiscal year after fiscal 
year 2017, the Secretary of Defense shall, with respect 
to advanced component development and prototype activi-
ties (within the research, development, test, and evaluation 
budget), set forth separately the amounts requested for 
each of the following: 
‘‘(1) Acquisition programs of record. 
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‘‘(2) Experimentation and rapid prototyping of 
weapon system components or other technologies 
and subsystems. 
‘‘(3) Other budget line items as determined by 
the Secretary of Defense. 
‘‘(b) ADDITIONAL REQUIREMENTS.—For purposes of 
subsection (a)(2), the amounts requested for experimen-
tation and rapid prototyping of weapon system compo-
nents or other technologies and subsystems shall be— 
‘‘(1) displayed in separate budget lines struc-
tured into either capability or weapon system compo-
nent portfolios that reflect the priority areas for pro-
totype projects; and 
‘‘(2) justified with general descriptions of the 
types of capability areas and technologies being 
funded or expected to be funded during the fiscal 
year concerned. 
‘‘(c) DEFINITIONS.—In this section, the terms ‘budg-
et’ and ‘defense budget materials’ have the meaning given 
those terms in section 234 of this title. 
‘‘§ 2447c. 
Weapon 
system 
component 
prototype 
projects: oversight 
‘‘(a) ESTABLISHMENT.—The Secretary of each mili-
tary department shall establish or appoint an oversight 
board or similar group of senior advisors for managing 
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prototype projects for weapon system components and 
other technologies and subsystems, including the use of 
funds for such projects, within the military department 
concerned. 
‘‘(b) MEMBERSHIP.—Each oversight board shall be 
comprised of senior officials with— 
‘‘(1) expertise in requirements; research, devel-
opment, test, and evaluation; acquisition; or other 
relevant areas within the military department con-
cerned; and 
‘‘(2) awareness of the component capability re-
quirements of major weapon systems, including 
scheduling and fielding goals for such component ca-
pabilities. 
‘‘(c) FUNCTIONS.—The functions of each oversight 
board are as follows: 
‘‘(1) To issue a strategic plan every three years 
that prioritizes the capability and weapon system 
component portfolio areas for conducting prototype 
projects, based on assessments of high priority 
warfighter needs, capability gaps on existing major 
weapon systems, opportunities to incrementally inte-
grate new components into major weapon systems, 
and technologies that are expected to be sufficiently 
mature to prototype within 3 years. 
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‘‘(2) To annually recommend funding levels for 
weapon system component prototype projects across 
capability or weapon system component portfolios. 
‘‘(3) To annually recommend to the service ac-
quisition executive of the military department con-
cerned specific weapon system component prototype 
projects, subject to the requirements and limitations 
in section 2447d of this title. 
‘‘(4) To ensure projects are managed by experts 
within the Department of Defense who are knowl-
edgeable in research, development, test, and evalua-
tion and who are aware of opportunities for incre-
mental deployment of component capabilities to 
major weapon systems. 
‘‘(5) To ensure projects are conducted in a 
manner that allows for appropriate experimentation 
and technology risk. 
‘‘(6) To ensure necessary technical, contracting, 
and financial management resources are available to 
support each project. 
‘‘(7) To submit to the congressional defense 
committees a semiannual notification that includes 
the following: 
‘‘(A) A description of each weapon system 
component prototype project initiated during 
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the preceding six months, including an expla-
nation of each project and its required funding. 
‘‘(B) A description of the results achieved 
from weapon system component prototype 
projects completed and tested during the pre-
ceding six months. 
‘‘§ 2447d. Requirements and limitations for weapon 
system component prototype projects 
‘‘(a) LIMITATION ON PROTOTYPE PROJECT DURA-
TION.—A prototype project shall be completed within 
three years of its initiation. 
‘‘(b) MERIT-BASED SELECTION PROCESS.—A proto-
type project shall be selected by the service acquisition ex-
ecutive of the military department concerned through a 
merit-based selection process that identifies the most 
promising and cost-effective prototypes that address a 
high priority warfighter need and are expected to be suc-
cessfully demonstrated in a relevant environment. 
‘‘(c) TYPE
OF TRANSACTION.—Prototype projects 
shall be funded through contracts, cooperative agree-
ments, or other transactions. 
‘‘(d) FUNDING LIMIT.—(1) Each prototype project 
may not exceed a total amount of $5,000,000 (based on 
fiscal year 2017 constant dollars), unless— 
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‘‘(A) the Secretary of the military department, 
or the Secretary’s designee, approves a larger 
amount of funding for the project, not to exceed 
$25,000,000; and 
‘‘(B) the Secretary, or the Secretary’s designee, 
submits to the congressional defense committees, 
within 30 days after approval of such funding for 
the project, a notification that includes— 
‘‘(i) a description of the project; 
‘‘(ii) expected funding for the project; and 
‘‘(iii) a statement of the anticipated out-
come of the project. 
‘‘(2) The Secretary of Defense may adjust the 
amounts (and the base fiscal year) provided in paragraph 
(1) on the basis of Department of Defense escalation 
rates. 
‘‘§ 2447e. Mechanisms to speed deployment of suc-
cessful weapon system component proto-
types 
‘‘(a) SELECTION OF PROTOTYPE PROJECT FOR PRO-
DUCTION.—A weapon system component or technology 
prototype project may be selected by the service acquisi-
tion executive of the military department concerned for a 
follow-on production contract or other transaction without 
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the use of competitive procedures, notwithstanding the re-
quirements of section 2304 of this title, if— 
‘‘(1) a prototype project addresses a high pri-
ority warfighter need; 
‘‘(2) competitive procedures were used for the 
selection of parties for participation in the prototype 
project; 
‘‘(3) the participants in the project successfully 
completed the project provided for in the trans-
action; and 
‘‘(4) the prototype was demonstrated in a rel-
evant environment. 
‘‘(b) SPECIAL TRANSFER AUTHORITY.—(1) The Sec-
retary of a military department may transfer funds that 
remain available for obligation in procurement appropria-
tion accounts of the military department to fund the low- 
rate initial production of a prototype until required fund-
ing for full-rate production can be submitted and approved 
through the regular budget process of the Department of 
Defense. 
‘‘(2) The funds transferred under this subsection to 
be used for production of a prototype shall be for a period 
not to exceed two years, the amount for such period may 
not exceed $10,000,000, and the special transfer authority 
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provided in this subsection may not be used more than 
once to fund procurement of a particular prototype. 
‘‘(3) The special transfer authority provided in this 
subsection is in addition to any other transfer authority 
available to the Department of Defense. 
‘‘(c) NOTIFICATION TO CONGRESS.—Within 30 days 
after the service acquisition executive of a military depart-
ment selects a weapon system component or technology 
prototype project for a follow-on production contract or 
other transaction, the service acquisition executive shall 
notify the congressional defense committees of the selec-
tion. 
‘‘§ 2447f. Definition of weapon system component 
‘‘In this subchapter, the term ‘weapon system compo-
nent’ has the meaning provided the term ‘major system 
component’ in section 2446a of this title.’’. 
(b) EFFECTIVE DATE.—Subchapter II of chapter 
144B of title 10, United States Code, as added by sub-
section (a), shall take effect on October 1, 2016. 
SEC. 4. COST, SCHEDULE, AND PERFORMANCE OF MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) IN GENERAL.—Chapter 144B of title 10, United 
States Code, as added by section 2, is amended by adding 
at the end the following new subchapter: 
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‘‘SUBCHAPTER III—COST, SCHEDULE, AND PER-
FORMANCE OF MAJOR DEFENSE ACQUISI-
TION PROGRAMS 
‘‘Sec. 
‘‘2448a. Program cost and fielding targets in planning major defense acquisi-
tion programs. 
‘‘2448b. Independent technical risk assessments. 
‘‘2448c. Adherence to requirements and thresholds in major defense acquisition 
programs. 
‘‘§ 2448a. Program cost and fielding targets in plan-
ning major defense acquisition programs 
‘‘(a) PROGRAM COST AND FIELDING TARGETS.—Be-
fore Milestone A approval is granted for a major defense 
acquisition program, the Secretary of Defense shall ensure 
the program will be affordable and fielded when needed 
by establishing targets for— 
‘‘(1) the program acquisition unit cost (referred 
to in this section as the ‘program cost target’; and 
‘‘(2) the date for initial operational capability 
(referred to in this section as the ‘fielding target’). 
‘‘(b) CONSIDERATIONS.—In establishing targets 
under subsection (a) for the program, the Secretary of De-
fense shall consider each of the following: 
‘‘(1) The capability needs and timeframe speci-
fied in the initial capabilities document, opportuni-
ties for incremental deployment of capabilities, and 
minimum acceptable capability increments. 
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‘‘(2) Resources available to fund the develop-
ment, production, and life cycle of the program, 
using a reasonable estimate of future defense budg-
ets. 
‘‘(3) Procurement quantity objectives. 
‘‘(4) Trade-offs among cost, schedule, technical 
risk, and performance objectives identified in the 
analysis of alternatives required under section 2366a 
of this title. 
‘‘(5) The independent cost estimate prepared or 
approved under section 2334(a)(6) of this title. 
‘‘(6) The independent technical risk assessment 
conducted or approved under section 2448b of this 
title. 
‘‘(c) DELEGATION.—The responsibilities of the Sec-
retary of Defense in subsection (a) may be delegated only 
to the Deputy Secretary of Defense or the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘program acquisition unit cost’ 
has the meaning provided in section 2432(a) of this 
title. 
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‘‘(2) The term ‘initial capabilities document’ 
has the meaning provided in section 2366a(d)(2) of 
this title. 
‘‘§ 2448b. Independent technical risk assessments 
‘‘(a) IN GENERAL.—The Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall conduct 
or approve an independent technical risk assessment for 
a major defense acquisition program— 
‘‘(1) before any decision to grant milestone ap-
proval pursuant to section 2366a or 2366b of this 
title; 
‘‘(2) before any decision to enter into low-rate 
initial production or full-rate production; and 
‘‘(3) at any other time considered appropriate 
by the Under Secretary. 
‘‘(b) CATEGORIZATION OF TECHNICAL RISK LEV-
ELS.—The Under Secretary shall issue guidance and a 
framework for categorizing the degree of technical risk in 
a major defense acquisition program and a major auto-
mated information system. 
‘‘§ 2448c. Adherence to requirements and thresholds 
in major defense acquisition programs 
‘‘(a) CAPABILITIES
DETERMINATION.—The Sec-
retary of the military department concerned shall ensure 
that the capability development document supporting a 
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Milestone A or subsequent milestone for a major defense 
acquisition program may not be submitted to the Joint 
Requirements Oversight Council for approval until the 
Chief of the armed force concerned determines in writing 
that the requirements in the document are necessary and 
realistic in relation to the program cost and fielding tar-
gets established under section 2448a(a) of this title. 
‘‘(b) COMPLIANCE WITH TARGETS BEFORE MILE-
STONE B APPROVAL.—A major defense acquisition pro-
gram may not receive Milestone B approval until the mile-
stone decision authority for the program determines in 
writing that the estimated program acquisition unit cost 
and the estimated date for initial operational capability 
for the baseline description for the program (established 
under section 2435) do not exceed the program cost and 
fielding targets established under section 2448a(a) of this 
title. If such estimated cost is higher than the program 
cost target or if such estimated date is later than the field-
ing target, the milestone decision authority may request 
that the Secretary of Defense increase the program cost 
target or delay the fielding target, as applicable.’’. 
(b) EFFECTIVE DATE.—Subchapter III of chapter 
144B of title 10, United States Code, as added by sub-
section (a), shall apply with respect to major defense ac-
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quisition programs that reach Milestone A after October 
1, 2016. 
(c) MODIFICATION OF MILESTONE DECISION AU-
THORITY.—Effective October 1, 2016, subsection (d) of 
section 2430 of title 10, United States Code, as added by 
section 825(a) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 907), 
is amended— 
(1) in paragraph (2)(A), by inserting ‘‘subject 
to paragraph (5),’’ before ‘‘the Secretary deter-
mines’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(5) The authority of the Secretary of Defense to 
designate an alternative milestone decision authority for 
a program with respect to which the Secretary determines 
that the program is addressing a joint requirement, as set 
forth in paragraph (2)(A), shall apply only for a major 
defense acquisition program that reaches Milestone A 
after October 1, 2016, and before October 1, 2019.’’. 
SEC. 5. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION 
PROGRAMS. 
(a) REPORTS ON MILESTONE DECISION METRICS.— 
Subchapter III of chapter 144B of title 10, United States 
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Code, as added by section 2, is amended by adding at the 
end the following new section: 
‘‘§ 2448d. Reports on milestone decision metrics 
‘‘(a) REPORT ON MILESTONE A.—Not later than 15 
days after granting Milestone A approval for a major de-
fense acquisition program, the milestone decision author-
ity for the program shall provide to the congressional de-
fense committees a brief summary report that contains the 
following: 
‘‘(1) The program cost and fielding targets es-
tablished by the Secretary of Defense under section 
2448a(a) of this title. 
‘‘(2) The cost and schedule estimates for the 
program conducted by the military department con-
cerned. 
‘‘(3) The independent cost estimate for the pro-
gram 
conducted 
or 
approved 
under 
section 
2334(a)(6) of this title, and any independent sched-
ule estimate conducted for the program. 
‘‘(4) A summary of the technical risks associ-
ated with the program, as determined by the mili-
tary department concerned. 
‘‘(5) A summary of the independent technical 
risk assessment conducted or approved under section 
2448b of this title. 
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‘‘(6) A summary of the sufficiency review con-
ducted by the Director of Cost Assessment and Pro-
gram Evaluation of the analysis of alternatives per-
formed for the program (as referred to in section 
2366a(b)(6) of this title). 
‘‘(7) Any other information the milestone deci-
sion authority considers relevant. 
‘‘(b) REPORT ON MILESTONE B.—Not later than 15 
days after granting Milestone B approval for a major de-
fense acquisition program, the milestone decision author-
ity for the program shall provide to the congressional de-
fense committees a brief summary report that contains the 
following: 
‘‘(1) The program cost and fielding targets es-
tablished by the Secretary of Defense under section 
2448a(a) of this title. 
‘‘(2) The cost and schedule estimates for the 
program conducted by the military department con-
cerned. 
‘‘(3) The independent cost estimate for the pro-
gram 
conducted 
or 
approved 
under 
section 
2334(a)(6) of this title, and any independent sched-
ule estimate conducted for the program. 
‘‘(4) The cost and schedule estimates approved 
for the program by the milestone decision authority. 
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‘‘(5) A summary of the technical risks associ-
ated with the program, as determined by the mili-
tary department concerned. 
‘‘(6) A summary of the independent technical 
risk assessment conducted or approved under section 
2448b of this title. 
‘‘(7) A list of critical technologies, if any, asso-
ciated with the program, that have not been success-
fully tested in a relevant environment. 
‘‘(8) A statement of whether the preliminary 
design review for the program (referred to in section 
2366b(a)(1) of this title) has been completed. 
‘‘(9) A statement of whether a modular open 
system architecture is being used for the program. 
‘‘(10) Any other information the milestone deci-
sion authority considers relevant. 
‘‘(c) REPORT ON MILESTONE C.—Not later than 15 
days after granting Milestone C approval for a major de-
fense acquisition program, the milestone decision author-
ity for the program shall provide to the congressional de-
fense committees a brief summary report that contains the 
following: 
‘‘(1) The cost and schedule estimates for the 
program conducted by the military department con-
cerned. 
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‘‘(2) The independent cost estimate for the pro-
gram 
conducted 
or 
approved 
under 
section 
2334(a)(6) of this title, and any independent sched-
ule estimate conducted for the program. 
‘‘(3) The cost and schedule estimates approved 
by the milestone decision authority for the program. 
‘‘(4) A summary of the production, manufac-
turing, and fielding risks associated with the pro-
gram. 
‘‘(d) ADDITIONAL INFORMATION.—At the request of 
any of the congressional defense committees, the milestone 
decision authority shall submit to the committee further 
information or underlying documentation for the informa-
tion in a report submitted under subsection (a), (b), or 
(c), including the independent cost and schedule estimates 
and the independent technical risk assessments referred 
to in those subsections.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by adding 
at the end the following new item: 
‘‘2448d. Reports on milestone decision metrics.’’. 
SEC. 6. AMENDMENTS RELATING TO TECHNICAL DATA 
RIGHTS. 
(a) RIGHTS RELATING TO ITEM OR PROCESS DEVEL-
OPED EXCLUSIVELY AT PRIVATE EXPENSE.— 
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(1) Subsection (a)(2)(C) of section 2320 of title 
10, United States Code, is amended— 
(A) by striking clause (ii) and inserting the 
following: 
‘‘(ii) relates to form, fit, function, or the 
external interface of an item or process with 
other items or processes, including any major 
system interface of a major system component 
with a major system platform or other major 
system component;’’; and 
(B) in clause (iii), by inserting after ‘‘or 
process data’’ the following: ‘‘, including data 
pertaining to a major system component’’. 
(2) Subsection (a)(2)(D)(i) of such section is 
amended— 
(A) by inserting ‘‘or’’ at the end of sub-
clause (I); 
(B) by striking subclause (II); and 
(C) by redesignating subclause (III) as 
subclause (II). 
(b) RIGHTS RELATING TO ITEM OR PROCESS DEVEL-
OPED IN PART WITH FEDERAL FUNDS AND IN PART AT 
PRIVATE EXPENSE.—Subsection (a)(2) of section 2320 of 
such title is further amended— 
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smartinez on DSK4TPTVN1PROD with BILLS
(1) by redesignating subparagraphs (F) and 
(G) as subparagraphs (G) and (H), respectively; 
(2) in subparagraph (E), by striking ‘‘In the 
case of’’ and inserting ‘‘Except as provided in sub-
paragraph (F), in the case of’’; and 
(3) by inserting after subparagraph (E) the fol-
lowing new subparagraph (F): 
‘‘(F) Notwithstanding subparagraph (E), in the 
case of an external interface that is developed in 
part with Federal funds and in part at private ex-
pense, the United States shall have unlimited rights 
to— 
‘‘(i) use technical data pertaining to such 
external interface; or 
‘‘(ii) release or disclose the technical data 
to persons outside the government or permit the 
use of the technical data by such persons.’’. 
(c) DEFINITIONS.—Section 2320 of such title is fur-
ther amended— 
(1) in subsection (f), by inserting ‘‘COVERED 
GOVERNMENT SUPPORT CONTRACTOR DEFINED.—’’ 
before ‘‘In this section’’; and 
(2) by adding at the end the following new sub-
section: 
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‘‘(g) ADDITIONAL DEFINITIONS.—In this section, the 
terms ‘major system platform’, ‘major system component’, 
and ‘major system interface’ have the meanings provided 
in section 2446a of this title.’’. 
(d) 
GOVERNMENT-INDUSTRY
ADVISORY
PANEL 
AMENDMENTS.—Section 813(b) of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 129 Stat. 892) is amended— 
(1) by adding at the end of the paragraph (1) 
the following: ‘‘The panel shall develop recommenda-
tions for changes to sections 2320 and 2321 of title 
10, United States Code, and the regulations imple-
menting such sections.’’; 
(2) in paragraph (3)— 
(A) by redesignating subparagraphs (D) 
and (E) as subparagraphs (E) and (F), respec-
tively; and 
(B) by inserting after subparagraph (C) 
the following new subparagraph (D): 
‘‘(D) Ensuring that the Department of De-
fense and Department of Defense contractors 
have the technical data rights necessary to sup-
port the modular open system architecture re-
quirement set forth in section 2446a of title 10, 
United States Code, taking into consideration 
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the distinct characteristics of major system 
platforms, major system interfaces, and major 
system components developed exclusively with 
Federal funds, exclusively at private expense, 
and with a combination of Federal funds and 
private expense.’’; and 
(3) in paragraph (4), by striking ‘‘September 
30, 2016’’ and inserting ‘‘December 15, 2016’’. 
(e) AMENDMENT RELATING TO NEGOTIATED RIGHTS 
FOR ITEM OR PROCESS DEVELOPED WITH MIXED FUND-
ING.—Subsection (a)(2)(E) of section 2320 of title 10, 
United States Code, is further amended by striking the 
period at the end of the first sentence in the matter pre-
ceding clause (i) and all that follows through ‘‘establish-
ment of any such negotiated rights shall’’ and inserting 
‘‘and shall be based on negotiations between the United 
States and the contractor, except in any case in which the 
Secretary of Defense determines, on the basis of criteria 
established in the regulations, that negotiations would not 
be practicable. The establishment of such rights shall’’. 
(f) AMENDMENT RELATING TO DEFERRED ORDER-
ING.—Subsection (b)(9) of section 2320 of such title is 
amended— 
(1) by striking ‘‘at any time’’ and inserting ‘‘, 
until the date occurring five years after acceptance 
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of the last item (other than technical data) under a 
contract or the date of contract termination, which-
ever is later,’’; 
(2) by striking ‘‘or utilized in the performance 
of a contract’’ and inserting ‘‘in the performance of 
the contract’’; and 
(3) by striking clause (ii) of subparagraph (B) 
and inserting the following: 
‘‘(ii) 
is 
described 
in 
subsection 
(a)(2)(C); and’’. 
Æ 
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