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Department of Defense shall ensure that findings and 
other information resulting from audits conducted pursu-
ant to subsection (a) are included in the semiannual report 
transmitted to congressional committees under section 
8(f)(1) of the Inspector General Act of 1978 (5 U.S.C. 
App.). 
SEC. 1602. EXPANSION OF THE PROCUREMENT TECHNICAL 
ASSISTANCE PROGRAM TO ADVANCE SMALL 
BUSINESS GROWTH. 
(a) ADVANCING SMALL BUSINESS GROWTH.— 
(1) IN
GENERAL.—Chapter 142 of title 10, 
United States Code, is amended— 
(A) by redesignating section 2419 as sec-
tion 2420; and 
(B) by inserting after section 2418 the fol-
lowing new section 2419: 
‘‘§ 2419. Advancing small business growth 
‘‘(a) IDENTIFICATION OF RECOMMENDED BUSINESS 
CAPABILITIES AND CHARACTERISTICS.—(1) The Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall publish in the Federal Register and on the 
website of the Office of Small Business Programs of the 
Department of Defense a list of capabilities and character-
istics recommended for the successful transition of a quali-
fied small business concern to become competitive as an 
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other-than-small business for contracts awarded by the 
Department of Defense. The capabilities and characteris-
tics on the list shall be set forth by North American Indus-
try Classification System sector. 
‘‘(2) The list shall be reviewed and updated appro-
priately on an annual basis. 
‘‘(b) CONTRACT CLAUSE REQUIRED.—(1) The Under 
Secretary shall require the clause described in paragraph 
(2) to be included in each covered contract awarded by 
the Department of Defense. 
‘‘(2) The clause described in this paragraph is a 
clause that— 
‘‘(A) requires the contractor to acknowledge 
that acceptance of the contract may cause the busi-
ness to exceed the applicable small business size 
standards (established pursuant to section 3(a) of 
the Small Business Act) for the industry concerned 
and that the contractor may no longer qualify as a 
small business concern for that industry; and 
‘‘(B) encourages the contractor to develop capa-
bilities and characteristics identified in the list re-
quired by subsection (a) if the contractor intends to 
remain competitive as an other-than-small business 
in that industry. 
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‘‘(c) ASSISTANCE FOR ADVANCING CERTAIN SMALL 
BUSINESSES.—Eligible small businesses may be provided 
specific assistance with developing the capabilities and 
characteristics identified in the list required by subsection 
(a), as part of any procurement technical assistance fur-
nished pursuant to this chapter. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered contract’ means a con-
tract— 
‘‘(A) awarded to a qualified small business 
concern as defined pursuant to section 3(a) of 
the Small Business Act; and 
‘‘(B) with an estimated annual value— 
‘‘(i) that will exceed the applicable re-
ceipt-based small business size standard; or 
‘‘(ii) if the contract is in an industry 
with an employee-based size standard, that 
will exceed $70,000,000. 
‘‘(2) The term ‘eligible small business’ means a 
qualified small business concern as defined pursuant 
to section 3(a) of the Small Business Act that has 
entered into a contract with the Department of De-
fense that includes a contract clause described in 
subsection (b)(2).’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions as the beginning of such chapter is amended 
by striking the item relating to section 2419 and in-
serting the following: 
‘‘2419. Advancing small business growth. 
‘‘2420. Regulations.’’. 
(b) EXCEPTION TO LIMITATION ON FUNDING.—Sec-
tion 2414 of such title is amended— 
(1) in subsection (a), by striking ‘‘The value’’ 
and inserting ‘‘Except as provided in subsection (c), 
the value’’; and 
(2) by adding at the end the following new sub-
section (c): 
‘‘(c) EXCEPTION.—The value of the assistance pro-
vided in accordance with section 2419(c) of this title is 
not subject to the limitations in subsection (a).’’. 
(c) REVISIONS TO COOPERATIVE AGREEMENTS.— 
(1) FULL FUNDING ALLOWED FOR CERTAIN AS-
SISTANCE.—Section 2413(b) of such title is amend-
ed— 
(A) by striking ‘‘except that in the case’’ 
and inserting: ‘‘except that— 
‘‘(1) in the case’’; 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and 
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(C) by adding at the end the following new 
paragraph: 
‘‘(2) in the case of a program sponsored by 
such an entity that provides specific assistance for 
eligible small businesses pursuant to section 2419(c) 
of this title, the Secretary may agree to furnish the 
full cost of such assistance.’’. 
(2) 
ADDITIONAL
CONSIDERATIONS.—Section 
2413 of such title is further amended by adding at 
the end the following new subsection: 
‘‘(e) In determining the level of funding to provide 
under an agreement under subsection (b), the Secretary 
shall consider the forecast by the eligible entity of demand 
for procurement technical assistance, and, in the case of 
an established program under this chapter, the outlays 
and receipts of such program during prior years of oper-
ation.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
2413(d) of such title is amended by striking ‘‘and in 
determining the level of funding to provide under an 
agreement under subsection (b),’’. 
(d) REPORT REQUIRED.—Not later than March 15 
of 2015, 2016, and 2017, the Secretary of Defense shall 
submit to the congressional defense committees a report 
on the implementation of the amendments made by this 
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section, along with any recommendations for improving 
the Procurement Technical Assistance Cooperative Agree-
ment Program. 
SEC. 1603. AMENDMENTS RELATING TO PROCUREMENT 
TECHNICAL 
ASSISTANCE 
COOPERATIVE 
AGREEMENT PROGRAM. 
(a) INCREASE
IN GOVERNMENT SHARE.—Section 
2413(b) of title 10, United States Code, is amended— 
(1) by striking ‘‘one-half’’ both places it ap-
pears and inserting ‘‘65 percent’’; and 
(2) by striking ‘‘three-fourths’’ and inserting 
‘‘75 percent’’. 
(b) INCREASE IN LIMITATIONS ON VALUE OF ASSIST-
ANCE.—Section 2414(a) of such title is amended— 
(1) in paragraphs (1) and (4), by striking 
‘‘$600,000’’ and inserting ‘‘$750,000’’; 
(2) in paragraph (2), by striking ‘‘$300,000’’ 
and inserting ‘‘$450,000’’; and 
(3) in paragraph (3), by striking ‘‘$150,000’’ 
and inserting ‘‘$300,000’’. 
SEC. 1604. STRATEGIC PLAN FOR REQUIREMENTS FOR WAR 
RESERVE STOCKS OF MEALS READY-TO-EAT. 
(a) LIMITATION; STRATEGIC PLAN.—The Adminis-
trator of the Defense Logistics Agency may not make any 
reductions in the requirements for war reserve stocks of 
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meals ready-to-eat until the Administrator and the heads 
of the military services, in consultation with manufactur-
ers of meals ready-to-eat, develop a comprehensive stra-
tegic plan to address— 
(1) the aggregate meals ready-to-eat require-
ments for each of the military departments; 
(2) industrial base sustainment and war-time 
surge capacity requirements for meals ready-to-eat; 
and 
(3) timely rotation of the war reserves of meals- 
ready-to-eat. 
(b) BRIEFING REQUIRED.—The Administrator shall 
brief the congressional defense committees on the strategic 
plan developed under subsection (a) before making any re-
ductions in the requirements for war reserve stocks of 
meals ready-to-eat. 
SEC. 1605. FOREIGN COMMERCIAL SATELLITE SERVICES. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, as amended by section 911(b) of this Act, 
is further amended by adding at the end the following new 
section: 
‘‘§ 2279. Foreign commercial satellite services 
‘‘(a) PROHIBITION.—The Secretary of Defense may 
not enter into a contract for satellite services with a for-
eign entity if— 
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‘‘(1) the foreign entity is an entity in which the 
government of a covered foreign country has an 
ownership interest; or 
‘‘(2) the foreign entity plans to or is expected 
to provide launch or other satellite services under 
the contract from a covered foreign country. 
‘‘(b) WAIVER.—The Secretary of Defense may waive 
subsection (a) for a particular contract if the Secretary, 
in consultation with the Director of National Intelligence, 
submits to the congressional defense committees a na-
tional security assessment for such contract that includes 
the following: 
‘‘(1) The projected period of performance (in-
cluding any period covered by options to extend the 
contract), the financial terms, and a description of 
the services to be provided under the contract. 
‘‘(2) To the extent practicable, a description of 
the ownership interest that a covered foreign country 
has in the foreign entity providing satellite services 
to the Department of Defense under the contract 
and the launch or other satellite services that will be 
provided in a covered foreign country under the con-
tract. 
‘‘(3) A justification for entering into a contract 
with such foreign entity and a description of the ac-
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tions necessary to eliminate the need to enter into 
such a contract with such foreign entity in the fu-
ture. 
‘‘(4) A risk assessment of entering into a con-
tract with such foreign entity, including an assess-
ment of mission assurance and security of informa-
tion and a description of any measures necessary to 
mitigate risks found by such risk assessment. 
‘‘(c) DELEGATION
OF WAIVER AUTHORITY.—The 
Secretary of Defense may only delegate the authority 
under subsection (b) to waive subsection (a) to the Deputy 
Secretary of Defense, the Under Secretary of Defense for 
Policy, or the Under Secretary of Defense for Acquisition, 
Technology, and Logistics and such authority may not be 
further delegated. 
‘‘(d) FORM OF WAIVER ASSESSMENTS.—Each as-
sessment under subsection (b) shall be submitted in un-
classified form, but may include a classified annex. 
‘‘(e) COVERED FOREIGN COUNTRY DEFINED.—In 
this section, the term ‘covered foreign country’ means a 
country described in section 1261(c)(2) of the National 
Defense Authorization Act for Fiscal Year 2013 (Public 
Law 112–239; 126 Stat. 2019).’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections at the beginning of such chapter, as amended by 
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section 911(c) of this Act, is further amended by adding 
at the end the following item: 
‘‘2279. Foreign commercial satellite services.’’. 
SEC. 1606. PROOF OF CONCEPT COMMERCIALIZATION 
PILOT PROGRAM. 
(a) PILOT PROGRAM.—The Secretary of Defense, 
acting through the Assistant Secretary of Defense for Re-
search and Engineering, shall establish and implement a 
pilot program, to be known as the ‘‘Proof of Concept Com-
mercialization Pilot Program’’, in accordance with this 
section. 
(b) PURPOSE.—The purpose of the pilot program is 
to accelerate the commercialization of basic research inno-
vations from qualifying institutions. 
(c) AWARDS.— 
(1) IN
GENERAL.—Under the pilot program, 
the Secretary shall make financial awards to quali-
fying institutions in accordance with this subsection. 
(2) COMPETITIVE, MERIT-BASED PROCESS.—An 
award under the pilot program shall be made using 
a competitive, merit-based process. 
(3) ELIGIBILITY.—A qualifying institution shall 
be eligible for an award under the pilot program if 
the institution agrees to— 
(A) use funds from the award for the uses 
specified in paragraph (5); and 
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(B) oversee the use of the funds through— 
(i) a rigorous, diverse review board 
comprised of experts in translational and 
proof of concept research, including indus-
try, start-up, venture capital, technical, fi-
nancial, and business experts and univer-
sity technology transfer officials; 
(ii) technology validation milestones 
focused on market feasibility; 
(iii) simple reporting on program 
progress; and 
(iv) a process to reallocate funding 
from poor performing projects to those 
with more potential. 
(4) CRITERIA.—An award may be made under 
the pilot program to a qualifying institution in ac-
cordance with the following criteria: 
(A) The extent to which a qualifying insti-
tution— 
(i) has an established and proven 
technology transfer or commercialization 
office and has a plan for engaging that of-
fice in the program’s implementation or 
has outlined an innovative approach to 
technology transfer that has the potential 
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to increase or accelerate technology trans-
fer outcomes and can be adopted by other 
qualifying institutions; 
(ii) can assemble a project manage-
ment board comprised of industry, start- 
up, venture capital, technical, financial, 
and business experts; 
(iii) has an intellectual property rights 
strategy or office; and 
(iv) demonstrates a plan for sustain-
ability beyond the duration of the funding 
from the award. 
(B) Such other criteria as the Secretary 
determines necessary. 
(5) USE OF AWARD.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the funds from an award may be 
used to evaluate the commercial potential of ex-
isting discoveries, including activities that con-
tribute to determining a project’s commer-
cialization path, including technical validations, 
market research, clarifying intellectual property 
rights, and investigating commercial and busi-
ness opportunities. 
(B) LIMITATIONS.— 
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(i) The amount of an award may not 
exceed $500,000 a year. 
(ii) Funds from an award may not be 
used for basic research, or to fund the ac-
quisition of research equipment or supplies 
unrelated to commercialization activities. 
(d) REPORT.—Not later than one year after the es-
tablishment of the pilot program, the Secretary shall sub-
mit to the congressional defense committees and to the 
Committee on Science, Space, and Technology of the 
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report 
evaluating the effectiveness of the activities of the pilot 
program. The report shall include— 
(1) a detailed description of the pilot program, 
including incentives and activities undertaken by re-
view board experts; 
(2) an accounting of the funds used in the pilot 
program; 
(3) a detailed description of the institutional se-
lection process; 
(4) a detailed compilation of results achieved by 
the pilot program; and 
(5) an analysis of the program’s effectiveness, 
with data supporting the analysis. 
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(e) QUALIFYING INSTITUTION DEFINED.—In this 
section, the term ‘‘qualifying institution’’ means a non-
profit institution, as defined in section 4(3) of the Steven-
son-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3703(3)), or a Federal laboratory, as defined in section 
4(4) of the Stevenson-Wydler Technology Innovation Act 
of 1980 (15 U.S.C. 3703(4)). 
(f) TERMINATION.—The pilot program conducted 
under this section shall terminate on September 30, 2018. 
SEC. 1607. REPORTING ON GOALS FOR PROCUREMENT 
CONTRACTS AWARDED TO SMALL BUSINESS 
CONCERNS. 
Subsection (h) of section 15 of the Small Business 
Act (15 U.S.C. 644) is amended to read as follows: 
‘‘(h) REPORTING
ON GOALS
FOR PROCUREMENT 
CONTRACTS
AWARDED
TO
SMALL
BUSINESS
CON-
CERNS.— 
‘‘(1) AGENCY REPORTS.—At the conclusion of 
each fiscal year, the head of each Federal agency 
shall submit to the Administrator a report describ-
ing— 
‘‘(A) the extent of the participation by 
small business concerns, small business con-
cerns owned and controlled by veterans (includ-
ing 
service-disabled 
veterans), 
qualified 
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HUBZone small business concerns, small busi-
ness concerns owned and controlled by socially 
and economically disadvantaged individuals, and 
small business concerns owned and controlled 
by women in the procurement contracts of such 
agency during such fiscal year; 
‘‘(B) whether the agency achieved the 
goals established for the agency under sub-
section (g)(2) with respect to such fiscal year; 
‘‘(C) any justifications for a failure to 
achieve such goals; and 
‘‘(D) a remediation plan with proposed 
new practices to better meet such goals, includ-
ing analysis of factors leading to any failure to 
achieve such goals. 
‘‘(2) REPORTS BY ADMINISTRATOR.—Not later 
than 60 days after receiving a report from each Fed-
eral agency under paragraph (1) with respect to a 
fiscal year, the Administrator shall submit to the 
President and Congress, and to make available on a 
public Web site, an annual report that includes— 
‘‘(A) a copy of each report submitted to 
the Administrator under paragraph (1); 
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‘‘(B) a determination of whether each goal 
established by the President under subsection 
(g)(1) for such fiscal year was achieved; 
‘‘(C) a determination of whether each goal 
established by the head of a Federal agency 
under subsection (g)(2) for such fiscal year was 
achieved; 
‘‘(D) the reasons for any failure to achieve 
a goal established under paragraph (1) or (2) 
of subsection (g) for such fiscal year and a de-
scription of actions planned by the applicable 
agency to address such failure, including the 
Administrator’s comments and recommenda-
tions on the proposed remediation plan; and 
‘‘(E) for the Federal Government and each 
Federal agency, an analysis of the number and 
dollar amount of prime contracts awarded dur-
ing such fiscal year to— 
‘‘(i) small business concerns— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
and 
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‘‘(IV) through unrestricted com-
petition; 
‘‘(ii) small business concerns owned 
and controlled by service-disabled vet-
erans— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
‘‘(IV) through competitions re-
stricted to small business concerns 
owned and controlled by service-dis-
abled veterans; and 
‘‘(V) through unrestricted com-
petition; 
‘‘(iii) qualified HUBZone small busi-
ness concerns— 
‘‘(I) in the aggregate; 
‘‘(II) through sole source con-
tracts; 
‘‘(III) through competitions re-
stricted to small business concerns; 
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