267 
1074g(a) of title 10, United States Code, for pharma-
ceutical agents available through retail pharmacies cov-
ered by paragraph (2)(E)(ii) of such section may not ex-
ceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
Subtitle B—Health Care 
Administration 
SEC. 711. ADMINISTRATION OF TRICARE. 
Subsection (a) of section 1073 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘Except’’ and inserting ‘‘(1) Ex-
cept’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Except as otherwise provided in this chapter, the 
Secretary of Defense shall have responsibility for admin-
istering the TRICARE program and making any decision 
affecting such program.’’.
268 
SEC. 712. POSTDEPLOYMENT HEALTH REASSESSMENTS 
FOR PURPOSES OF THE MEDICAL TRACKING 
SYSTEM FOR MEMBERS OF THE ARMED 
FORCES DEPLOYED OVERSEAS. 
(a) REQUIREMENT FOR POSTDEPLOYMENT HEALTH 
REASSESSMENTS.—Paragraph (1) of subsection (b) of 
section 1074f of title 10, United States Code, is amended 
to read as follows: 
‘‘(1)(A) The system described in subsection (a) shall 
include the use of predeployment medical examinations 
and postdeployment medical examinations (including the 
assessment of mental health and the drawing of blood 
samples) and postdeployment health reassessments to— 
‘‘(i) accurately record the health status of mem-
bers before their deployment; 
‘‘(ii) accurately record any changes in their 
health status during the course of their deployment; 
and 
‘‘(iii) identify health concerns, including mental 
health concerns, that may become manifest several 
months following their deployment. 
‘‘(B) The postdeployment medical examination shall 
be conducted when the member is redeployed or otherwise 
leaves an area in which the system is in operation (or as 
soon as possible thereafter).
269 
‘‘(C) The postdeployment health reassessment shall 
be conducted at an appropriate time during the period be-
ginning 90 days after the member is redeployed and end-
ing 180 days after the member is redeployed.’’. 
(b) INCORPORATION IN REASSESSMENTS OF ELE-
MENTS
OF PREDEPLOYMENT
AND POSTDEPLOYMENT 
MEDICAL EXAMINATIONS.—Paragraph (2) of such sub-
section is amended by striking ‘‘and postdeployment med-
ical examination’’ and inserting ‘‘medical examination, 
postdeployment medical examination, and postdeployment 
health reassessment’’. 
(c) RECORDKEEPING.—Subsection (c) of such section 
is amended— 
(1) by inserting ‘‘and reassessments’’ after 
‘‘medical examinations’’; and 
(2) by inserting ‘‘and the prescription and ad-
ministration of psychotropic medications’’ after ‘‘in-
cluding immunizations’’. 
(d) QUALITY ASSURANCE.—Subsection (d) of such 
section is amended— 
(1) in paragraph (1), by striking ‘‘and 
postdeployment medical examinations’’ and inserting 
‘‘, 
postdeployment 
medical 
examinations, 
and 
postdeployment health reassessments’’; and 
(2) in paragraph (2)—
270 
(A) in subparagraph (A), by inserting 
‘‘and reassessments’’ after ‘‘postdeployment 
health assessments’’; and 
(B) in subparagraph (B), by inserting 
‘‘and reassessments’’ after ‘‘such assessments’’. 
SEC. 713. CLARIFICATION OF LICENSURE REQUIREMENTS 
APPLICABLE 
TO 
MILITARY 
HEALTH-CARE 
PROFESSIONALS WHO ARE MEMBERS OF THE 
NATIONAL GUARD PERFORMING CERTAIN 
DUTY WHILE IN STATE STATUS. 
Section 1094(d) of title 10, United States Code, is 
amended— 
(1) in paragraph (1), by inserting ‘‘or (3)’’ 
after ‘‘paragraph (2)’’; 
(2) in paragraph (2), by inserting ‘‘as being de-
scribed in this paragraph’’ after ‘‘paragraph (1)’’; 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) A health-care professional referred to in para-
graph (1) as being described in this paragraph is a mem-
ber of the National Guard who— 
‘‘(A) has a current license to practice medicine, 
osteopathic medicine, dentistry, or another health 
profession; and
271 
‘‘(B) is performing training or duty under sec-
tion 502(f) of title 32 in response to an actual or 
potential disaster.’’. 
SEC. 714. IMPROVEMENTS TO OVERSIGHT OF MEDICAL 
TRAINING FOR MEDICAL CORPS OFFICERS. 
(a) REVIEW OF TRAINING PROGRAMS FOR MEDICAL 
OFFICERS.— 
(1) REVIEW.—The Secretary of Defense shall 
conduct a review of training programs for medical 
officers (as defined in section 101(b)(14) of title 10, 
United States Code) to ensure that the academic 
and military performance of such officers has been 
completely documented in military personnel records. 
The programs reviewed shall include, at a minimum, 
the following: 
(A) Programs at the Uniformed Services 
University of the Health Sciences that award a 
medical doctor degree. 
(B) Selected residency programs at mili-
tary medical treatment facilities, as determined 
by the Secretary, to include at least one pro-
gram in each of the specialties of— 
(i) anesthesiology; 
(ii) emergency medicine; 
(iii) family medicine;
272 
(iv) general surgery; 
(v) neurology; 
(vi) obstetrics/gynecology; 
(vii) pathology; 
(viii) pediatrics; and 
(ix) psychiatry. 
(2) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense 
committees a report on the findings of the review 
under paragraph (1). 
(b) ANNUAL REPORT ON GRADUATE MEDICAL EDU-
CATION PROGRAMS.— 
(1) ANNUAL REPORT.—Not later than April 1, 
2011, and annually thereafter through 2015, the 
Secretary of Defense shall submit to the congres-
sional defense committees a report on the status of 
the graduate medical education programs of the De-
partment of Defense. 
(2) ELEMENTS.—Each report under paragraph 
(1) shall include the following: 
(A) An identification of each graduate 
medical education program of the Department 
of Defense in effect during the previous fiscal 
year, including for each such program, the mili-
273 
tary department responsible, the location, the 
medical specialty, the period of training re-
quired, and the number of students by year. 
(B) The status of each program referred to 
in subparagraph (A), including, for each such 
program, an identification of the fiscal year in 
which the last action was taken with respect to 
each of the following: 
(i) Initial accreditation. 
(ii) Continued accreditation. 
(iii) If applicable, probation, and the 
reasons for probationary status. 
(iv) If applicable, withheld or with-
drawn accreditation, and the reasons for 
such action. 
(C) A discussion of trends in the graduate 
medical education programs of the Department. 
(D) A discussion of challenges faced by 
such programs, and a description and assess-
ment of strategies and plans to address such 
challenges. 
(E) Such other matters as the Secretary 
considers appropriate.
274 
SEC. 715. HEALTH INFORMATION TECHNOLOGY. 
(a) ENTERPRISE RISK ASSESSMENT METHODOLOGY 
STUDY.— 
(1) STUDY REQUIRED.—The Secretary of De-
fense shall conduct an enterprise risk assessment 
methodology study of all health information tech-
nology programs of the Department of Defense. 
(2) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
shall submit to the congressional defense committees 
a report containing the results of the study required 
under paragraph (1). 
(b) REPORT
ON
HEALTH
INFORMATION
TECH-
NOLOGY ORGANIZATIONAL STRUCTURE
AND FUTURE 
PLANS.— 
(1) REPORT REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congres-
sional defense committees a report on the organiza-
tional structure for health information technology 
within the Department of Defense. 
(2) ELEMENTS.—The report required under 
paragraph (1) shall include the following: 
(A) Organizational charts for all organiza-
tions involved with health information tech-
275 
nology showing, at a minimum, the senior posi-
tions in each office and each activity. 
(B) A description of the functions and re-
sponsibilities, to include policy formulation, pol-
icy and program execution, and program over-
sight, of each senior position for health infor-
mation technology. 
(C) An assessment of how well the health 
information systems of the Department of De-
fense interact with the health information sys-
tems of— 
(i) the Department of Veterans Af-
fairs; and 
(ii) entities other than the Federal 
Government. 
(D) A description of the role played by the 
Interagency Program Office established by sec-
tion 1635 of the Wounded Warrior Act (title 
XVI of Public Law 110–181; 10 U.S.C. 1071 
note) and whether the office is satisfactorily 
performing the functions required by such sec-
tion, as well as recommendations for adminis-
trative or legislative action as the Secretary 
considers appropriate.
276 
(E) A complete description of all future 
plans for legacy systems and new electronic 
health record initiatives, including the joint vir-
tual lifetime electronic record. 
(F) The results of the survey described in 
paragraph (3). 
(3) SURVEY.—The Secretary shall conduct a 
survey of users of the health information technology 
systems of the Department of Defense to assess the 
benefits and failings of such systems. 
(4) DEFINITIONS.—In this subsection: 
(A) The term ‘‘senior position’’ means a 
position filled by a member of the senior execu-
tive service, a position on the Executive Sched-
ule established pursuant to title 5, United 
States Code, or a position filled by a general or 
flag officer. 
(B) The term ‘‘senior personnel’’ means 
personnel who are members of the senior execu-
tive service, who fill a position listed on the Ex-
ecutive Schedule established pursuant to title 5, 
United States Code, or who are general or flag 
officers. 
(c) REPORT ON GAO REPORT REQUIRED.—Not later 
than March 31, 2011, the Secretary of Defense shall sub-
277 
mit to the congressional defense committees a report on 
the report by the Comptroller General of the United States 
titled ‘‘Information Technology: Opportunities Exist to 
Improve Management of DOD’s Electronic Health Record 
Initiative’’ (GAO-11-50), including— 
(1) the status of implementing the rec-
ommendations made in such report; and 
(2) for each such recommendation that has not 
been implemented, the reason why the recommenda-
tion has not been implemented. 
SEC. 716. EDUCATION AND TRAINING ON USE OF PHARMA-
CEUTICALS IN REHABILITATION PROGRAMS 
FOR WOUNDED WARRIORS. 
(a) EDUCATION
AND TRAINING REQUIRED.—The 
Secretary of Defense shall develop and implement train-
ing, available through the Internet or other means, on the 
use of pharmaceuticals in rehabilitation programs for seri-
ously ill or injured members of the Armed Forces. 
(b) RECIPIENTS OF TRAINING.—The training devel-
oped and implemented under subsection (a) shall be train-
ing for each category of individuals as follows: 
(1) Patients in or transitioning to a wounded 
warrior unit, with special accommodation in such 
training for such patients with cognitive disabilities. 
(2) Nonmedical case managers.
278 
(3) Military leaders. 
(4) Family members. 
(c) ELEMENTS OF TRAINING.—The training devel-
oped and implemented under subsection (a) shall include 
the following: 
(1) An overview of the fundamentals of safe 
prescription drug use. 
(2) Familiarization with the benefits and risks 
of using pharmaceuticals in rehabilitation therapies. 
(3) Examples of the use of pharmaceuticals for 
individuals with multiple, complex injuries, including 
traumatic brain injury and post-traumatic stress dis-
order. 
(4) Familiarization with means of finding addi-
tional resources for information on pharmaceuticals. 
(5) Familiarization with basic elements of pain 
and pharmaceutical management. 
(6) Familiarization with complementary and al-
ternative therapies. 
(d) TAILORING OF TRAINING.—The training devel-
oped and implemented under subsection (a) shall appro-
priately tailor the elements specified in subsection (c) for 
and among each category of individuals set forth in sub-
section (b). 
(e) REVIEW OF PHARMACY.—
279 
(1) REVIEW.—The Secretary shall review all 
policies and procedures of the Department of De-
fense regarding the use of pharmaceuticals in reha-
bilitation programs for seriously ill or injured mem-
bers of the Armed Forces. 
(2) RECOMMENDATIONS.—Not later than Sep-
tember 20, 2011, the Secretary shall submit to the 
congressional defense committees any recommenda-
tions for administrative or legislative action with re-
spect to the review under paragraph (1) as the Sec-
retary considers appropriate. 
Subtitle C—Other Matters 
SEC. 721. REPEAL OF REPORT REQUIREMENT ON SEPARA-
TIONS RESULTING FROM REFUSAL TO PAR-
TICIPATE IN ANTHRAX VACCINE IMMUNIZA-
TION PROGRAM. 
Section 1178 of title 10, United States Code, is 
amended— 
(1) by striking ‘‘(a) REQUIREMENT TO ESTAB-
LISH SYSTEM.—’’; and 
(2) by striking subsection (b).
280 
SEC. 722. COMPREHENSIVE POLICY ON CONSISTENT NEU-
ROLOGICAL COGNITIVE ASSESSMENTS OF 
MEMBERS OF THE ARMED FORCES BEFORE 
AND AFTER DEPLOYMENT. 
(a) COMPREHENSIVE POLICY REQUIRED.—Not later 
than January 31, 2011, the Secretary of Defense shall de-
velop and implement a comprehensive policy on consistent 
neurological cognitive assessments of members of the 
Armed Forces before and after deployment. 
(b) UPDATES.—The Secretary shall revise the policy 
required by subsection (a) on a periodic basis in accord-
ance with experience and evolving best practice guidelines. 
SEC. 723. ASSESSMENT OF POST-TRAUMATIC STRESS DIS-
ORDER BY MILITARY OCCUPATION. 
(a) ASSESSMENT.—The Secretaries of the military 
departments shall each conduct an assessment of post- 
traumatic stress disorder incidence by military occupation, 
including identification of military occupations with a high 
incidence of such disorder. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretaries shall each 
submit to the congressional defense committees a report 
on the assessment under subsection (a). 
(c) CENTERS OF EXCELLENCE.—The Secretary of 
Defense shall ensure that all studies, findings, plans, and 
reports conducted or submitted under this section are
281 
transmitted to the centers of excellence established by sec-
tions 1621 and 1622 of the Wounded Warrior Act (title 
XVI of Public Law 110–181). 
SEC. 724. LICENSED MENTAL HEALTH COUNSELORS AND 
THE TRICARE PROGRAM. 
Not later than June 20, 2011, the Secretary of De-
fense shall prescribe the regulations required by section 
717 of the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 10 U.S.C. 1073 note). 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Disclosure to litigation support contractors. 
Sec. 802. Designation of engine development and procurement program as 
major subprogram. 
Sec. 803. Enhancement of Department of Defense authority to respond to com-
bat and safety emergencies through rapid acquisition and de-
ployment of urgently needed supplies. 
Sec. 804. Review of acquisition process for rapid fielding of capabilities in re-
sponse to urgent operational needs. 
Sec. 805. Acquisition of major automated information system programs. 
Sec. 806. Requirements for information relating to supply chain risk. 
Subtitle B—Provisions Relating to Major Defense Acquisition Programs 
Sec. 811. Cost estimates for program baselines and contract negotiations for 
major defense acquisition and major automated information 
system programs. 
Sec. 812. Management of manufacturing risk in major defense acquisition pro-
grams. 
Sec. 813. Modification and extension of requirements of the Weapon System 
Acquisition Reform Act of 2009. 
Sec. 814. Inclusion of major subprograms to major defense acquisition pro-
grams under various acquisition-related requirements. 
Subtitle C—Amendments to General Contracting Authorities, Procedures, and 
Limitations
282 
Sec. 821. Provisions relating to fire resistant fiber for production of military 
uniforms. 
Sec. 822. Repeal of requirement for certain procurements from firms in the 
small arms production industrial base. 
Sec. 823. Review of regulatory definition relating to production of specialty 
metals. 
Sec. 824. Guidance relating to rights in technical data. 
Sec. 825. Extension of sunset date for certain protests of task and delivery 
order contracts. 
Sec. 826. Inclusion of option amounts in limitations on authority of the Depart-
ment of Defense to carry out certain prototype projects. 
Sec. 827. Permanent authority for Defense Acquisition Challenge Program; 
pilot expansion of Program. 
Sec. 828. Energy savings performance contracts. 
Sec. 829. Definition of materials critical to national security. 
Subtitle D—Contractor Matters 
Sec. 831. Oversight and accountability of contractors performing private secu-
rity functions in areas of combat operations. 
Sec. 832. Extension of regulations on contractors performing private security 
functions to areas of other significant military operations. 
Sec. 833. Standards and certification for private security contractors. 
Sec. 834. Enhancements of authority of Secretary of Defense to reduce or deny 
award fees to companies found to jeopardize the health or safe-
ty of Government personnel. 
Sec. 835. Annual joint report and Comptroller General review on contracting in 
Iraq and Afghanistan. 
Subtitle E—Other Matters 
Sec. 841. Improvements to structure and functioning of Joint Requirements 
Oversight Council. 
Sec. 842. Department of Defense policy on acquisition and performance of sus-
tainable products and services. 
Sec. 843. Assessment and plan for critical rare earth materials in defense appli-
cations. 
Sec. 844. Review of national security exception to competition. 
Sec. 845. Requirement for entities with facility clearances that are not under 
foreign ownership control or influence mitigation. 
Sec. 846. Procurement of photovoltaic devices. 
Sec. 847. Non-availability exception from Buy American requirements for pro-
curement of hand or measuring tools. 
Sec. 848. Contractor logistics support of contingency operations. 
Subtitle F—Improve Acquisition Act 
Sec. 860. Short title. 
PART I—DEFENSE ACQUISITION SYSTEM 
Sec. 861. Improvements to the management of the defense acquisition system. 
Sec. 862. Comptroller General report on Joint Capabilities Integration and De-
velopment System. 
Sec. 863. Requirements for the acquisition of services. 
Sec. 864. Review of defense acquisition guidance.
283 
Sec. 865. Requirement to review references to services acquisition throughout 
the Federal Acquisition Regulation and the Defense Federal 
Acquisition Regulation Supplement. 
Sec. 866.
Pilot program on acquisition of military purpose nondevelopmental 
items. 
PART II—DEFENSE ACQUISITION WORKFORCE 
Sec. 871. Acquisition workforce excellence. 
Sec. 872. Amendments to the acquisition workforce demonstration project. 
Sec. 873. Career development for civilian and military personnel in the acquisi-
tion workforce. 
Sec. 874. Recertification and training requirements. 
Sec. 875. Information technology acquisition workforce. 
Sec. 876. Definition of acquisition workforce. 
Sec. 877. Defense Acquisition University curriculum review. 
PART III—FINANCIAL MANAGEMENT 
Sec. 881. Audit readiness of financial statements of the Department of De-
fense. 
Sec. 882. Review of obligation and expenditure thresholds. 
Sec. 883. Disclosure and traceability of the cost of Department of Defense 
health care contracts. 
PART IV—INDUSTRIAL BASE 
Sec. 891. Expansion of the industrial base. 
Sec. 892. Price trend analysis for supplies and equipment purchased by the De-
partment of Defense. 
Sec. 893. Contractor business systems. 
Sec. 894. Review and recommendations on eliminating barriers to contracting 
with the Department of Defense. 
Sec. 895. Inclusion of the providers of services and information technology in 
the national technology and industrial base. 
Sec. 896. Deputy Assistant Secretary of Defense for Manufacturing and Indus-
trial Base Policy; Industrial Base Fund. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. DISCLOSURE TO LITIGATION SUPPORT CONTRAC-
TORS. 
(a) IN GENERAL.—Section 2320 of title 10, United 
States Code, is amended— 
(1) in subsection (c)(2)— 
(A) by striking ‘‘subsection (a), allowing’’ 
and inserting ‘‘subsection (a)—
284 
‘‘(A) allowing’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(B) allowing a covered litigation support 
contractor access to and use of any technical, 
proprietary, or confidential data delivered under 
a contract for the sole purpose of providing liti-
gation support to the Government in the form 
of administrative, technical, or professional 
services during or in anticipation of litigation; 
or’’; and 
(2) by inserting after subsection (f) the fol-
lowing: 
‘‘(g) In this section, the term ‘covered litigation sup-
port contractor’ means a contractor (including an expert 
or technical consultant) under contract with the Depart-
ment of Defense to provide litigation support, which con-
tractor executes a contract with the Government agreeing 
to and acknowledging— 
‘‘(1) that proprietary or nonpublic technical 
data furnished will be accessed and used only for the 
purposes stated in that contract; 
‘‘(2) that the covered litigation support con-
tractor will take all reasonable steps to protect the 
proprietary and nonpublic nature of the technical
285 
data furnished to the covered litigation support con-
tractor; and 
‘‘(3) that such technical data provided to the 
covered litigation support contractor under the au-
thority of this section shall not be used by the cov-
ered litigation support contractor to compete against 
the third party for Government or non-Government 
contracts.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date that is 120 
days after the date of the enactment of this Act. 
SEC. 802. DESIGNATION OF ENGINE DEVELOPMENT AND 
PROCUREMENT PROGRAM AS MAJOR SUB-
PROGRAM. 
(a) DESIGNATION
AS MAJOR SUBPROGRAM.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall designate an engine 
development and procurement program as a major subpro-
gram of the F–35 Lightning II aircraft major defense ac-
quisition program, in accordance with section 2430a of 
title 10, United States Code. 
(b) ORIGINAL BASELINE.—For purposes of reporting 
requirements referred to in section 2430a(b) of title 10, 
United States Code, for the major subprogram designated
286 
under subsection (a), the Secretary shall use the Milestone 
B decision as the original baseline for the subprogram. 
(c) 
ACTIONS
FOLLOWING
CRITICAL
COST 
GROWTH.— 
(1) IN GENERAL.—Subject to paragraph (2), to 
the extent that the Secretary elects to restructure 
the Lightning II aircraft major defense acquisition 
program subsequent to a reassessment and actions 
required by subsections (a) and (c) of section 2433a 
of title 10, United States Code, during fiscal year 
2010, and also conducts such reassessment and ac-
tions with respect to an F–35 engine development 
and procurement program (including related report-
ing based on the original baseline as defined in sub-
section (c)), the requirements of section 2433a of 
such title with respect to a major subprogram des-
ignated under subsection (a) shall be considered to 
be met with respect to the major subprogram. 
(2) LIMITATION.—Actions taken in accordance 
with paragraph (1) shall be considered to meet the 
requirements of section 2433a of title 10, United 
States Code, with respect to a major subprogram 
designated under subsection (a) only to the extent 
that designation as a major subprogram would re-
quire the Secretary of Defense to conduct a reas-
287 
sessment and take actions pursuant to such section 
2433a for such a subprogram upon enactment of 
this Act. The requirements of such section 2433a 
shall not be considered to be met with respect to 
such a subprogram in the event that additional pro-
grammatic changes, following the date of the enact-
ment of this Act, cause the program acquisition unit 
cost or procurement unit cost of such a subprogram 
to increase by a percentage equal to or greater than 
the critical cost growth threshold (as defined in sec-
tion 2433(a)(5) of such title) for the subprogram. 
SEC. 803. ENHANCEMENT OF DEPARTMENT OF DEFENSE 
AUTHORITY TO RESPOND TO COMBAT AND 
SAFETY EMERGENCIES THROUGH RAPID AC-
QUISITION AND DEPLOYMENT OF URGENTLY 
NEEDED SUPPLIES. 
(a) REQUIREMENT TO ESTABLISH PROCEDURES.— 
Subsection (a) of section 806 of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (10 
U.S.C. 2302 note) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘items’’ and inserting ‘‘supplies’’; and 
(2) by striking paragraph (1) and inserting the 
following new paragraph (1):
288 
‘‘(1)(A) currently under development by the De-
partment of Defense or available from the commer-
cial sector; or 
‘‘(B) require only minor modifications to sup-
plies described in subparagraph (A); and’’. 
(b) ISSUES TO BE ADDRESSED.—Subsection (b) of 
such section is amended— 
(1) in paragraph (1)(B), by striking ‘‘items’’ 
and inserting ‘‘supplies’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘items’’ and inserting ‘‘sup-
plies’’; 
(B) in subparagraphs (A) and (B), by 
striking ‘‘an item’’ and inserting ‘‘the supplies’’; 
and 
(C) in subparagraph (C), by inserting ‘‘and 
utilization’’ after ‘‘deployment’’. 
(c) RESPONSE
TO COMBAT EMERGENCIES.—Sub-
section (c) of such section is amended— 
(1) by striking ‘‘equipment’’ each place it ap-
pears other than paragraph (5) and inserting ‘‘sup-
plies’’; 
(2) by striking ‘‘combat capability’’ each place 
it appears;
289 
(3) by striking ‘‘that has resulted in combat fa-
talities’’ each place it appears and inserting ‘‘that 
has resulted in combat casualties, or is likely to re-
sult in combat casualties’’; 
(4) in paragraph (1), by striking ‘‘is’’ and in-
serting ‘‘are’’; 
(5) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘is’’ 
each place it appears and inserting ‘‘are’’; and 
(B) in subparagraph (B), by striking ‘‘fa-
talities’’ at the end and inserting ‘‘casualties’’; 
(6) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) In any fiscal year in which the Secretary makes 
a determination described in paragraph (1), the Secretary 
may use any funds available to the Department of Defense 
for that fiscal year for acquisitions of supplies under this 
section if the determination includes a written finding that 
the use of such funds is necessary to address the combat 
capability deficiency in a timely manner. The authority of 
this section may not be used to acquire supplies in an 
amount aggregating more than $200,000,000 during any 
such fiscal year.’’; 
(7) in paragraph (4)—
290 
(A) by inserting ‘‘, in consultation with the 
Director of the Office of Management and 
Budget,’’ after ‘‘shall’’; and 
(B) by striking ‘‘Each such notice’’ and in-
serting ‘‘For each such determination, the no-
tice under the preceding sentence’’; and 
(8) in paragraph (5), by striking ‘‘that equip-
ment’’ and inserting ‘‘the supplies concerned’’. 
(d) WAIVER OF CERTAIN STATUES AND REGULA-
TIONS.—Subsection (d)(1) of such section is amended by 
striking ‘‘equipment’’ in subparagraphs (A), (B), and (C) 
and inserting ‘‘supplies’’. 
(e) TESTING REQUIREMENT.—Subsection (e) of such 
section is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘an item’’ and inserting ‘‘the 
supplies’’; and 
(B) in subparagraph (B), by striking ‘‘of 
the item’’ and all that follows through ‘‘require-
ments document’’ and inserting ‘‘of the supplies 
in meeting the original requirements for the 
supplies (as stated in a statement of the urgent 
operational need’’; 
(2) in paragraph (2)—
291 
(A) by striking ‘‘an item’’ and inserting 
‘‘supplies’’; and 
(B) by striking ‘‘the item’’ and inserting 
‘‘the supplies’’; and 
(3) in paragraph (3), by striking ‘‘items’’ each 
place it appears and inserting ‘‘supplies’’. 
(f) LIMITATION.—Subsection (f) of such section is 
amended to read as follows: 
‘‘(f) LIMITATION.—In the case of supplies that are 
part of a major system for which a low-rate initial produc-
tion quantity determination has been made pursuant to 
section 2400 of title 10, United States Code, the quantity 
of such supplies acquired using the procedures prescribed 
pursuant to this section may not exceed an amount con-
sistent with complying with limitations on the quantity of 
articles approved for low-rate initial production for such 
system. Any such supplies shall be included in any relevant 
calculation of quantities for low-rate initial production for 
the system concerned.’’. 
SEC. 804. REVIEW OF ACQUISITION PROCESS FOR RAPID 
FIELDING OF CAPABILITIES IN RESPONSE TO 
URGENT OPERATIONAL NEEDS. 
(a) REVIEW OF RAPID ACQUISITION PROCESS RE-
QUIRED.—
292 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense shall complete a review of the 
process for the fielding of capabilities in response to 
urgent operational needs and submit a report on the 
review to the congressional defense committees. 
(2) REVIEW
AND
REPORT
REQUIREMENTS.— 
The review pursuant to this section shall include 
consideration of various improvements to the acqui-
sition process for rapid fielding of capabilities in re-
sponse to urgent operational needs. For each im-
provement, the report on the review shall discuss— 
(A) the Department’s review of the im-
provement; 
(B) if the improvement is being imple-
mented by the Department, a schedule for im-
plementing the improvement; and 
(C) if the improvement is not being imple-
mented by the Department, an explanation of 
why the improvement is not being implemented. 
(3) IMPROVEMENTS TO BE CONSIDERED.—The 
improvements that shall be considered during the re-
view are the following: 
(A) Providing a streamlined, expedited, 
and tightly integrated iterative approach to—
293 
(i) the identification and validation of 
urgent operational needs; 
(ii) the analysis of alternatives and 
identification of preferred solutions; 
(iii) the development and approval of 
appropriate requirements and acquisition 
documents; 
(iv) the identification and minimiza-
tion of development, integration, and man-
ufacturing risks; 
(v) the consideration of operation and 
sustainment costs; 
(vi) the allocation of appropriate fund-
ing; and 
(vii) the rapid production and delivery 
of required capabilities. 
(B) Clearly defining the roles and respon-
sibilities of the Office of the Secretary of De-
fense, the Joint Chiefs of Staff, the military de-
partments, and other components of the De-
partment of Defense for carrying out all phases 
of the process. 
(C) Designating a senior official within the 
Office of the Secretary of Defense with primary 
responsibility for making recommendations to
294 
the Secretary on the use of the authority pro-
vided by subsections (c) and (d) of section 806 
of the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003 (10 U.S.C. 2302 
note), as amended by section 803 of this Act, 
in appropriate circumstances. 
(D) Establishing a target date for the 
fielding of a capability pursuant to each vali-
dated urgent operational need. 
(E) Implementing a system for— 
(i) documenting key process mile-
stones, such as funding, acquisition, field-
ing, and assessment decisions and actions; 
and 
(ii) tracking the cost, schedule, and 
performance of acquisitions conducted pur-
suant to the process. 
(F) Establishing a formal feedback mecha-
nism for the commanders of the combatant 
commands to provide information to the Joint 
Chiefs of Staff and senior acquisition officials 
on how well fielded solutions are meeting urgent 
operational needs.
295 
(G) Establishing a dedicated source of 
funding for the rapid fielding of capabilities in 
response to urgent operational needs. 
(H) Issuing guidance to provide for the ap-
propriate transition of capabilities acquired 
through rapid fielding into the traditional budg-
et, requirements, and acquisition process for 
purposes of contracts for follow-on production, 
sustainment, and logistics support. 
(I) Such other improvements as the Sec-
retary considers appropriate. 
(b) DISCRIMINATING URGENT OPERATIONAL NEEDS 
FROM TRADITIONAL REQUIREMENTS.— 
(1) EXPEDITED REVIEW PROCESS.—Not later 
than 270 days after the date of the enactment of 
this Act, the Secretary shall develop and implement 
an expedited review process to determine whether 
capabilities proposed as urgent operational needs are 
appropriate for fielding through the process for the 
rapid fielding of capabilities or should be fielded 
through the traditional acquisition process. 
(2) ELEMENTS.—The review process developed 
and implemented pursuant to paragraph (1) shall— 
(A) apply to the rapid fielding of capabili-
ties in response to joint urgent operational need
296 
statements and to other urgent operational 
needs statements generated by the military de-
partments and the combatant commands; 
(B) identify officials responsible for mak-
ing determinations described in paragraph (1); 
(C) establish appropriate time periods for 
making such determinations; 
(D) set forth standards and criteria for 
making such determinations based on consider-
ations of urgency, risk, and life-cycle manage-
ment; 
(E) establish appropriate thresholds for 
the applicability of the review process, or of ele-
ments of the review process; and 
(F) authorize appropriate officials to make 
exceptions from standards and criteria estab-
lished under subparagraph (D) in exceptional 
circumstances. 
(3) COVERED CAPABILITIES.—The review proc-
ess developed and implemented pursuant to para-
graph (1) shall provide that, subject to such excep-
tions as the Secretary considers appropriate for pur-
poses of this section, the acquisition process for 
rapid fielding of capabilities in response to urgent
297 
operational needs is appropriate only for capabilities 
that— 
(A) can be fielded within a period of two 
to 24 months; 
(B) do not require substantial development 
effort; 
(C) are based on technologies that are 
proven and available; and 
(D) can appropriately be acquired under 
fixed price contracts. 
(4) INCLUSION
IN
REPORT.—The Secretary 
shall include a description of the expedited review 
process implemented pursuant to paragraph (1) in 
the report required by subsection (a). 
SEC. 805. ACQUISITION OF MAJOR AUTOMATED INFORMA-
TION SYSTEM PROGRAMS. 
(a) PROGRAM TO IMPROVE INFORMATION TECH-
NOLOGY PROCESSES.— 
(1) IN
GENERAL.—Chapter 131 of title 10, 
United States Code, is amended by inserting after 
section 2223 the following new section: 
‘‘§ 2223a. Information technology acquisition plan-
ning and oversight requirements 
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Defense shall establish a program to improve the plan-
298 
ning and oversight processes for the acquisition of major 
automated information systems by the Department of De-
fense. 
‘‘(b) PROGRAM COMPONENTS.—The program estab-
lished under subsection (a) shall include— 
‘‘(1) a documented process for information 
technology acquisition planning, requirements devel-
opment and management, project management and 
oversight, earned value management, and risk man-
agement; 
‘‘(2) the development of appropriate metrics 
that can be implemented and monitored on a real- 
time basis for performance measurement of— 
‘‘(A) processes and development status of 
investments in major automated information 
system programs; 
‘‘(B) continuous process improvement of 
such programs; and 
‘‘(C) achievement of program and invest-
ment outcomes; 
‘‘(3) a process to ensure that key program per-
sonnel have an appropriate level of experience, train-
ing, and education in the planning, acquisition, exe-
cution, management, and oversight of information 
technology systems;
299 
‘‘(4) a process to ensure sufficient resources 
and infrastructure capacity for test and evaluation 
of information technology systems; 
‘‘(5) a process to ensure that military depart-
ments and Defense Agencies adhere to established 
processes and requirements relating to the planning, 
acquisition, execution, management, and oversight of 
information technology programs and developments; 
and 
‘‘(6) a process under which an appropriate De-
partment of Defense official may intervene or termi-
nate the funding of an information technology in-
vestment if the investment is at risk of not achieving 
major project milestones.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 131 of such title 
is amended by inserting after the item relating to 
section 2223 the following new item: 
‘‘2223a. Information technology acquisition planning and oversight require-
ments.’’. 
(b) ANNUAL
REPORT
TO
CONGRESS.—Section 
2445b(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraphs: 
‘‘(5) For each major automated information 
system program for which such information has not 
been provided in a previous annual report—
300 
‘‘(A) a description of the business case 
analysis (if any) that has been prepared for the 
program and key functional requirements for 
the program; 
‘‘(B) a description of the analysis of alter-
natives conducted with regard to the program; 
‘‘(C) an assessment of the extent to which 
the program, or portions of the program, have 
technical requirements of sufficient clarity that 
the program, or portions of the program, may 
be feasibly procured under firm, fixed-price con-
tracts; 
‘‘(D) the most recent independent cost es-
timate or cost analysis for the program pro-
vided by the Director of Cost Assessment and 
Program Evaluation in accordance with section 
2334(a)(6) of this title; 
‘‘(E) a certification by a Department of 
Defense acquisition official with responsibility 
for the program that all technical and business 
requirements have been reviewed and validated 
to ensure alignment with the business case; and 
‘‘(F) an explanation of the basis for the 
certification described in subparagraph (E).
301 
‘‘(6) For each major automated information 
system program for which the information required 
under paragraph (5) has been provided in a previous 
annual report, a summary of any significant changes 
to the information previously provided.’’. 
SEC. 806. REQUIREMENTS FOR INFORMATION RELATING 
TO SUPPLY CHAIN RISK. 
(a) AUTHORITY.—Subject to subsection (b), the head 
of a covered agency may— 
(1) carry out a covered procurement action; and 
(2) limit, notwithstanding any other provision 
of law, in whole or in part, the disclosure of informa-
tion relating to the basis for carrying out a covered 
procurement action. 
(b) DETERMINATION AND NOTIFICATION.—The head 
of a covered agency may exercise the authority provided 
in subsection (a) only after— 
(1) obtaining a joint recommendation by the 
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics and the Chief Information Of-
ficer of the Department of Defense, on the basis of 
a risk assessment by the Under Secretary of Defense 
for Intelligence, that there is a significant supply 
chain risk to a covered system;
302 
(2) making a determination in writing, in un-
classified or classified form, with the concurrence of 
the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, that— 
(A) use of the authority in subsection 
(a)(1) is necessary to protect national security 
by reducing supply chain risk; 
(B) less intrusive measures are not reason-
ably available to reduce such supply chain risk; 
and 
(C) in a case where the head of the covered 
agency plans to limit disclosure of information 
under subsection (a)(2), the risk to national se-
curity due to the disclosure of such information 
outweighs the risk due to not disclosing such 
information; and 
(3) providing a classified or unclassified notice 
of the determination made under paragraph (2) to 
the appropriate congressional committees, which no-
tice shall include— 
(A) the information required by section 
2304(f)(3) of title 10, United States Code; 
(B) the joint recommendation by the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Infor-
303 
mation Officer of the Department of Defense as 
specified in paragraph (1); 
(C) a summary of the risk assessment by 
the Under Secretary of Defense for Intelligence 
that serves as the basis for the joint rec-
ommendation specified in paragraph (1); and 
(D) a summary of the basis for the deter-
mination, including a discussion of less intru-
sive measures that were considered and why 
they were not reasonably available to reduce 
supply chain risk. 
(c) DELEGATION.—The head of a covered agency 
may not delegate the authority provided in subsection (a) 
or the responsibility to make a determination under sub-
section (b) to an official below the level of the service ac-
quisition executive for the agency concerned. 
(d) LIMITATION ON DISCLOSURE.—If the head of a 
covered agency has exercised the authority provided in 
subsection (a)(2) to limit disclosure of information— 
(1) no action undertaken by the agency head 
under such authority shall be subject to review in a 
bid protest before the Government Accountability 
Office or in any Federal court; and 
(2) the agency head shall—
304 
(A) notify appropriate parties of a covered 
procurement action and the basis for such ac-
tion only to the extent necessary to effectuate 
the covered procurement action; 
(B) notify other Department of Defense 
components or other Federal agencies respon-
sible for procurements that may be subject to 
the same or similar supply chain risk, in a man-
ner and to the extent consistent with the re-
quirements of national security; and 
(C) ensure the confidentiality of any such 
notifications. 
(e) DEFINITIONS.—In this section: 
(1) HEAD OF A COVERED AGENCY.—The term 
‘‘head of a covered agency’’ means each of the fol-
lowing: 
(A) The Secretary of Defense. 
(B) The Secretary of the Army. 
(C) The Secretary of the Navy. 
(D) The Secretary of the Air Force. 
(2) COVERED
PROCUREMENT
ACTION.—The 
term ‘‘covered procurement action’’ means any of 
the following actions, if the action takes place in the 
course of conducting a covered procurement:
305 
(A) The exclusion of a source that fails to 
meet qualification standards established in ac-
cordance with the requirements of section 2319 
of title 10, United States Code, for the purpose 
of reducing supply chain risk in the acquisition 
of covered systems. 
(B) The exclusion of a source that fails to 
achieve an acceptable rating with regard to an 
evaluation factor providing for the consideration 
of supply chain risk in the evaluation of pro-
posals for the award of a contract or the 
issuance of a task or delivery order. 
(C) The decision to withhold consent for a 
contractor to subcontract with a particular 
source or to direct a contractor for a covered 
system to exclude a particular source from con-
sideration for a subcontract under the contract. 
(3) COVERED PROCUREMENT.—The term ‘‘cov-
ered procurement’’ means— 
(A) a source selection for a covered system 
or a covered item of supply involving either a 
performance specification, as provided in sec-
tion 2305(a)(1)(C)(ii) of title 10, United States 
Code, or an evaluation factor, as provided in
306 
section 2305(a)(2)(A) of such title, relating to 
supply chain risk; 
(B) the consideration of proposals for and 
issuance of a task or delivery order for a cov-
ered system or a covered item of supply, as pro-
vided in section 2304c(d)(3) of title 10, United 
States Code, where the task or delivery order 
contract concerned includes a contract clause 
establishing a requirement relating to supply 
chain risk; or 
(C) any contract action involving a con-
tract for a covered system or a covered item of 
supply where such contract includes a clause es-
tablishing requirements relating to supply chain 
risk. 
(4) SUPPLY CHAIN RISK.—The term ‘‘supply 
chain risk’’ means the risk that an adversary may 
sabotage, maliciously introduce unwanted function, 
or otherwise subvert the design, integrity, manufac-
turing, production, distribution, installation, oper-
ation, or maintenance of a covered system so as to 
surveil, deny, disrupt, or otherwise degrade the func-
tion, use, or operation of such system. 
(5) COVERED SYSTEM.—The term ‘‘covered sys-
tem’’ means a national security system, as that term
307 
is defined in section 3542(b) of title 44, United 
States Code. 
(6) COVERED
ITEM
OF
SUPPLY.—The term 
‘‘covered item of supply’’ means an item of informa-
tion technology (as that term is defined in section 
11101 of title 40, United States Code) that is pur-
chased for inclusion in a covered system, and the 
loss of integrity of which could result in a supply 
chain risk for a covered system. 
(7) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) in the case of a covered system in-
cluded in the National Intelligence Program or 
the Military Intelligence Program, the Select 
Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of 
the House of Representatives, and the congres-
sional defense committees; and 
(B) in the case of a covered system not 
otherwise included in subparagraph (A), the 
congressional defense committees. 
(f) EFFECTIVE DATE.—The requirements of this sec-
tion shall take effect on the date that is 180 days after 
the date of the enactment of this Act and shall apply to—
308 
(1) contracts that are awarded on or after such 
date; and 
(2) task and delivery orders that are issued on 
or after such date pursuant to contracts that award-
ed before, on, or after such date. 
(g) SUNSET.—The authority provided in this section 
shall expire on the date that is three years after the date 
of the enactment of this Act. 
Subtitle B—Provisions Relating to 
Major Defense Acquisition Pro-
grams 
SEC. 811. COST ESTIMATES FOR PROGRAM BASELINES AND 
CONTRACT NEGOTIATIONS FOR MAJOR DE-
FENSE 
ACQUISITION 
AND 
MAJOR 
AUTO-
MATED INFORMATION SYSTEM PROGRAMS. 
Section 2334 of title 10, United States Code, is 
amended— 
(1) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraph (3)’’; and 
(ii) by striking ‘‘, the rationale for se-
lecting such confidence level, and, if such 
confidence level is less than 80 percent, the 
justification for selecting a confidence level
309 
of less than 80 percent; and’’ and inserting 
‘‘and the rationale for selecting such con-
fidence level;’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) ensure that such confidence level provides 
a high degree of confidence that the program can be 
completed without the need for significant adjust-
ment to program budgets; and’’; 
(2) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e) ESTIMATES
FOR PROGRAM BASELINE
AND 
ANALYSES AND TARGETS FOR CONTRACT NEGOTIATION 
PURPOSES.—(1) The policies, procedures, and guidance 
issued by the Director of Cost Assessment and Program 
Evaluation in accordance with the requirements of sub-
section (a) shall provide that— 
‘‘(A) cost estimates developed for baseline de-
scriptions and other program purposes conducted 
pursuant to subsection (a)(6) are not to be used for
310 
the purpose of contract negotiations or the obliga-
tion of funds; and 
‘‘(B) cost analyses and targets developed for 
the purpose of contract negotiations and the obliga-
tion of funds are based on the Government’s reason-
able expectation of successful contractor perform-
ance in accordance with the contractor’s proposal 
and previous experience. 
‘‘(2) The Program Manager and contracting officer 
for each major defense acquisition program and major 
automated information system program shall ensure that 
cost analyses and targets developed for the purpose of con-
tract negotiations and the obligation of funds are carried 
out in accordance with the requirements of paragraph (1) 
and the policies, procedures, and guidance issued by the 
Director of Cost Assessment and Program Evaluation. 
‘‘(3) Funds that are made available for a major de-
fense acquisition program or major automated information 
system program in accordance with a cost estimate con-
ducted pursuant to subsection (a)(6), but are excess to 
a cost analysis or target developed pursuant to paragraph 
(2), shall remain available for obligation in accordance 
with the terms of applicable authorization and appropria-
tions Acts. 
‘‘(4) Funds described in paragraph (3)—
311 
‘‘(A) may be used— 
‘‘(i) to cover any increased program costs 
identified by a revised cost analysis or target 
developed pursuant to paragraph (2); 
‘‘(ii) to acquire additional end items in ac-
cordance with the requirements of section 2308 
of this title; or 
‘‘(iii) to cover the cost of risk reduction 
and process improvements; and 
‘‘(B) may be reprogrammed, in accordance with 
established procedures, only if determined to be ex-
cess to program needs on the basis of a cost esti-
mate developed with the concurrence of the Director 
of Cost Assessment and Program Evaluation.’’. 
SEC. 812. MANAGEMENT OF MANUFACTURING RISK IN 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) GUIDANCE REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall issue comprehensive guidance on the 
management of manufacturing risk in major defense ac-
quisition programs. 
(b) ELEMENTS.—The guidance issued under sub-
section (a) shall, at a minimum— 
(1) require the use of manufacturing readiness 
levels as a basis for measuring, assessing, reporting,
312 
and communicating manufacturing readiness and 
risk on major defense acquisition programs through-
out the Department of Defense; 
(2) provide guidance on the definition of manu-
facturing readiness levels and how manufacturing 
readiness levels should be used to assess manufac-
turing risk and readiness in major defense acquisi-
tion programs; 
(3) specify manufacturing readiness levels that 
should be achieved at key milestones and decision 
points for major defense acquisition programs; 
(4) identify tools and models that may be used 
to assess, manage, and reduce risks that are identi-
fied in the course of manufacturing readiness assess-
ments for major defense acquisition programs; and 
(5) require appropriate consideration of the 
manufacturing readiness and manufacturing readi-
ness processes of potential contractors and sub-
contractors as a part of the source selection process 
for major defense acquisition programs. 
(c) MANUFACTURING READINESS EXPERTISE.—The 
Secretary shall ensure that— 
(1) the acquisition workforce chapter of the an-
nual strategic workforce plan required by section 
115b of title 10, United States Code, includes an as-
313 
sessment of the critical manufacturing readiness 
knowledge and skills needed in the acquisition work-
force and a plan of action for addressing any gaps 
in such knowledge and skills; and 
(2) the need of the Department for manufac-
turing readiness knowledge and skills is given appro-
priate consideration, comparable to the consideration 
given to other program management functions, as 
the Department identifies areas of need for funding 
through the Defense Acquisition Workforce Develop-
ment Fund established in accordance with the re-
quirements of section 1705 of title 10, United States 
Code. 
(d) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—In this section, the term ‘‘major defense acquisi-
tion program’’ has the meaning given that term in section 
2430(a) of title 10, United States Code. 
SEC. 813. MODIFICATION AND EXTENSION OF REQUIRE-
MENTS OF THE WEAPON SYSTEM ACQUISI-
TION REFORM ACT OF 2009. 
(a) EXTENSION OF REPORTING REQUIREMENTS.— 
Section 102(b) of the Weapon Systems Acquisition Re-
form Act of 2009 (Public Law 111–23; 123 Stat. 1714; 
10 U.S.C. 2430 note) is amended—
314 
(1) in paragraph (2), by inserting ‘‘, and not 
later than February 15 of each year from 2011 
through 2014’’ after ‘‘Not later than 180 days after 
the date of the enactment of this Act’’; and 
(2) in paragraph (3), by striking ‘‘The first an-
nual report’’ and inserting ‘‘Each annual report 
from 2010 through 2014’’. 
(b) CLARIFICATION THAT PROTOTYPES MAY BE AC-
QUIRED FROM COMMERCIAL, GOVERNMENT, OR ACA-
DEMIC SOURCES.—Paragraph (4) of section 203(a) of the 
Weapon Systems Acquisition Reform Act of 2009 (Public 
Law 111–23; 123 Stat. 1722; 10 U.S.C. 2430 note) is 
amended to read as follows: 
‘‘(4) That prototypes— 
‘‘(A) may be required under paragraph (1) 
or (3) for the system to be acquired or, if proto-
typing of the system is not feasible, for critical 
subsystems of the system; and 
‘‘(B) may be acquired from commercial, 
government, or academic sources.’’. 
(c) CLARIFICATION THAT CERTIFICATIONS ARE NOT 
REQUIRED
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS FOLLOWING MILESTONE C APPROVAL.—Section 
204(c)(2) of the Weapon Systems Acquisition Reform Act 
of 2009 (123 Stat. 1724) is amended—
315 
(1) in subparagraph (A), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in subparagraph (B), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) has not yet achieved a Milestone C 
approval.’’. 
(d) CLARIFICATION THAT CERTAIN MILESTONE B 
CERTIFICATION CRITERIA MAY BE WAIVED.— 
(1) WAIVER AUTHORITY.—Effective as of May 
22, 2009, section 2366b(d) of title 10, United States 
Code, as amended by section 205(a)(1) of the Weap-
on Systems Acquisition Reform Act of 2009 (123 
Stat. 1724), is amended— 
(A) in paragraph (1), by striking ‘‘speci-
fied in paragraph (1) or (2) of subsection (a)’’ 
and inserting ‘‘specified in paragraph (1), (2), 
or (3) of subsection (a)’’; and 
(B) in paragraph (2), by striking ‘‘speci-
fied in paragraphs (1) and (2) of subsection 
(a)’’ and inserting ‘‘specified in paragraphs (1), 
(2), and (3) of subsection (a)’’. 
(2) DETERMINATION REGARDING SATISFACTION 
OF CERTIFICATION COMPONENTS.—Effective as of
317 
(3) in subparagraph (A), as so redesignated, by 
inserting ‘‘(other than as provided in paragraph 
(2))’’ before the semicolon; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) For a major defense acquisition program for 
which a designation of a major subprogram has been made 
under subsection (a), unit costs under this chapter shall 
be submitted in accordance with the definitions in sub-
section (d).’’. 
(b) MILESTONE A APPROVAL CERTIFICATION RE-
QUIREMENTS.—Section 2366a of such title is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘a major 
defense acquisition program certified by the 
Milestone Decision Authority under subsection 
(a), if the projected cost of the program’’ and 
inserting ‘‘a major defense acquisition program 
certified by the Milestone Decision Authority 
under subsection (a) or a designated major sub-
program of such program, if the projected cost 
of the program or subprogram’’; and 
(B) in paragraph (2), by inserting ‘‘or des-
ignated major subprogram’’ after ‘‘major de-
fense acquisition program’’; and
318 
(2) in subsection (c)— 
(A) by redesignating paragraphs (2), (3), 
(4), and (5) as paragraphs (3), (4), (5), and 
(6), respectively; and 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense ac-
quisition 
program 
designated 
under 
section 
2430a(a)(1) of this title.’’. 
(c) MILESTONE B APPROVAL CERTIFICATION RE-
QUIREMENTS.—Section 2366b of such title is amended— 
(1) in subsection (b)(1)— 
(A) by striking ‘‘any changes to the pro-
gram’’ and inserting ‘‘any changes to the pro-
gram or a designated major subprogram of 
such program’’; and 
(B) in subparagraph (B), by striking ‘‘oth-
erwise cause the program’’ and inserting ‘‘oth-
erwise cause the program or subprogram’’; and 
(2) in subsection (g)— 
(A) by redesignating paragraphs (2), (3), 
and (4) as paragraphs (3), (4), and (5), respec-
tively; and
319 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense ac-
quisition 
program 
designated 
under 
section 
2430a(a)(1) of this title.’’. 
(d) 
CONFORMING
AMENDMENTS
TO
SECTION 
2399.—Subsection (a) of section 2399 of such title is 
amended to read as follows: 
‘‘(a) CONDITION FOR PROCEEDING BEYOND LOW- 
RATE INITIAL PRODUCTION.—(1) The Secretary of De-
fense shall provide that a covered major defense acquisi-
tion program or a covered designated major subprogram 
may not proceed beyond low-rate initial production until 
initial operational test and evaluation of the program or 
subprogram is completed. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘covered major defense acquisi-
tion program’ means a major defense acquisition 
program that involves the acquisition of a weapon 
system that is a major system within the meaning 
of that term in section 2302(5) of this title. 
‘‘(B) The term ‘covered designated major sub-
program’ means a major subprogram designated 
under section 2430a(a)(1) of this title that is a
320 
major subprogram of a covered major defense acqui-
sition program.’’. 
(e) 
CONFORMING
AMENDMENTS
TO
SECTION 
2434.—Section 2434(a) of such title is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of 
Defense’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The provisions of this section shall apply to any 
major subprogram of a major defense acquisition program 
(as designated under section 2430a(a)(1) of this title) in 
the same manner as those provisions apply to a major de-
fense acquisition program, and any reference in this sec-
tion to a program shall be treated as including such a sub-
program.’’. 
Subtitle C—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 821. PROVISIONS RELATING TO FIRE RESISTANT 
FIBER FOR PRODUCTION OF MILITARY UNI-
FORMS. 
(a) EXTENSION.—Section 829 of the National De-
fense Authorization Act for Fiscal Year 2008 (Public Law 
110–181; 122 Stat. 229; 10 U.S.C. 2533a note) is amend-
ed in subsection (f) by striking ‘‘on the date that is five
321 
years after the date of the enactment of this Act’’ and 
inserting ‘‘on January 1, 2015’’. 
(b) PROHIBITION ON SPECIFICATION IN SOLICITA-
TIONS.—No solicitation issued before January 1, 2015, by 
the Department of Defense may include a requirement 
that proposals submitted pursuant to such solicitation 
must include the use of fire resistant rayon fiber. 
(c) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than March 15, 
2011, the Comptroller General of the United States 
shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a 
report on the supply chain for fire resistant fiber for 
the production of military uniforms. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include, at a minimum, an analysis 
of the following: 
(A) The current and anticipated sources of 
fire resistant rayon fiber for the production of 
military uniforms. 
(B) The extent to which fire resistant 
rayon fiber has unique properties that provide 
advantages for the production of military uni-
forms.
323 
delivery, or a lower quality of product delivered 
to the Government. 
(H) The extent to which any modifications 
to existing law or regulation may be necessary 
to ensure the efficient acquisition of fire resist-
ant fiber or alternative fire resistant products 
for the production of military uniforms. 
SEC. 822. REPEAL OF REQUIREMENT FOR CERTAIN PRO-
CUREMENTS FROM FIRMS IN THE SMALL 
ARMS PRODUCTION INDUSTRIAL BASE. 
(a) REPEAL.—Section 2473 of title 10, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 146 of such title is amended 
by striking the item relating to section 2473. 
SEC. 823. REVIEW OF REGULATORY DEFINITION RELATING 
TO PRODUCTION OF SPECIALTY METALS. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall review the regulations specified in subsection (b) to 
ensure that the definition of the term ‘‘produce’’ in such 
regulations complies with the requirements of section 
2533b of title 10, United States Code. In carrying out 
the review, the Secretary shall seek public comment, con-
sider congressional intent, and revise the regulations as 
the Secretary considers necessary and appropriate.
324 
(b) REGULATIONS SPECIFIED.—The regulations re-
ferred to in subsection (a) are any portion of subpart 
252.2 of the defense supplement to the Federal Acquisi-
tion Regulation that includes a definition of the term 
‘‘produce’’ for purposes of implementing section 2533b of 
title 10, United States Code. 
(c) COMPLETION OF REVIEW.—The Secretary shall 
complete the review required by subsection (a) and any 
necessary and appropriate revisions to the defense supple-
ment to the Federal Acquisition Regulation not later than 
270 days after the date of the enactment of this Act. 
SEC. 824. GUIDANCE RELATING TO RIGHTS IN TECHNICAL 
DATA. 
(a) REVIEW OF GUIDANCE.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall review guidance issued by the military 
departments on the implementation of section 2320(e) of 
title 10, United States Code, to ensure that such guidance 
is consistent with the guidance issued by the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics and the requirements of this section. Such guidance 
shall be designed to ensure that the United States— 
(1) preserves the option of competition for con-
tracts for the production and sustainment of systems 
or subsystems that are developed exclusively with
325 
Federal funds as defined in accordance with the 
amendments made by this section; and 
(2) is not required to pay more than once for 
the same technical data. 
(b) RIGHTS IN TECHNICAL DATA.—Section 2320(a) 
of title 10, United States Code, is amended— 
(1) in paragraph (2)(F)(i)— 
(A) by redesignating subclauses (I) and 
(II) as subclauses (II) and (III), respectively; 
and 
(B) by inserting before subclause (II), as 
so redesignated, the following new subclause 
(I): 
‘‘(I) rights in technical data described 
in subparagraph (A) for which a use or re-
lease restriction has been erroneously as-
serted by a contractor or subcontractor;’’; 
and 
(2) in paragraph (3), by striking ‘‘for the pur-
poses of definitions under this paragraph’’ and in-
serting ‘‘for the purposes of paragraph (2)(B), but 
shall be considered to be Federal funds for the pur-
poses of paragraph (2)(A)’’.
326 
(c) VALIDATION OF PROPRIETARY DATA RESTRIC-
TIONS.—Section 2321(d)(2) of title 10, United States 
Code, is amended— 
(1) in subparagraph (A), by striking ‘‘A chal-
lenge’’ and inserting ‘‘Except as provided in sub-
paragraph (C), a challenge’’; and 
(2) by adding at the end the following new sub-
paragraph (C): 
‘‘(C) The limitation in this paragraph shall not apply 
to a case in which the Secretary finds that reasonable 
grounds exist to believe that a contractor or subcontractor 
has erroneously asserted a use or release restriction with 
regard 
to 
technical 
data 
described 
in 
section 
2320(a)(2)(A) of this title.’’. 
SEC. 825. EXTENSION OF SUNSET DATE FOR CERTAIN PRO-
TESTS OF TASK AND DELIVERY ORDER CON-
TRACTS. 
Paragraph (3) of section 2304c(e) of title 10, United 
States Code, is amended to read as follows: 
‘‘(3) Paragraph (1)(B) and paragraph (2) of this sub-
section shall not be in effect after September 30, 2016.’’.
327 
SEC. 826. INCLUSION OF OPTION AMOUNTS IN LIMITA-
TIONS ON AUTHORITY OF THE DEPARTMENT 
OF DEFENSE TO CARRY OUT CERTAIN PRO-
TOTYPE PROJECTS. 
Section 845 of the National Defense Authorization 
Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amend-
ed— 
(1) in subsection (a)(2)— 
(A) in subparagraph (A), by inserting ‘‘(in-
cluding all options)’’ after ‘‘not in excess of 
$100,000,000’’; and 
(B) in subparagraph (B), by inserting 
‘‘(including all options)’’ after ‘‘in excess of 
$100,000,000’’; and 
(2) in subsection (e)(3)(A), by inserting ‘‘(in-
cluding all options)’’ after ‘‘does not exceed 
$50,000,000’’. 
SEC. 827. PERMANENT AUTHORITY FOR DEFENSE ACQUISI-
TION CHALLENGE PROGRAM; PILOT EXPAN-
SION OF PROGRAM. 
(a) PERMANENT AUTHORITY.—Section 2359b of title 
10, United States Code, is amended— 
(1) by striking subsections (j) and (k); and 
(2) by redesignating subsection (l) as subsection 
(j).
328 
(b) PILOT PROGRAM.—Section 2359b of title 10, 
United States Code, as amended by subsection (a), is fur-
ther amended by adding at the end the following new sub-
section (k): 
‘‘(k) PILOT PROGRAM FOR PROGRAMS OTHER THAN 
MAJOR DEFENSE ACQUISITION PROGRAMS.— 
‘‘(1) IN
GENERAL.—The Under Secretary of 
Defense for Acquisition, Technology, and Logistics 
shall carry out a pilot program to expand the use of 
the authority provided in this section to provide op-
portunities for the introduction of innovative and 
cost-saving approaches to programs other than 
major defense acquisition programs through the sub-
mission, review, and implementation, where appro-
priate, of qualifying proposals. 
‘‘(2) QUALIFYING
PROPOSALS.—For purposes 
of this subsection, a qualifying proposal is an offer 
to supply a nondevelopmental item that— 
‘‘(A) is evaluated as achieving a level of 
performance that is at least equal to the level 
of performance of an item being procured under 
a covered acquisition program and as providing 
savings in excess of 15 percent after consid-
ering all costs to the Government of imple-
menting such proposal; or
329 
‘‘(B) is evaluated as achieving a level of 
performance that is significantly better than the 
level of performance of an item being procured 
under a covered acquisition program without 
any increase in cost to the Government. 
‘‘(3) REVIEW PROCEDURES.—The Under Sec-
retary shall adopt modifications as may be needed to 
the procedures applicable to the Challenge Program 
to provide for Department of Defense review of, and 
action on, qualifying proposals. Such procedures 
shall include, at a minimum, the issuance of a broad 
agency announcement inviting interested parties to 
submit qualifying proposals in areas of interest to 
the Department. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) NONDEVELOPMENTAL
ITEM.—The 
term ‘nondevelopmental item’ has the meaning 
given that term in section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 
403). 
‘‘(B) COVERED ACQUISITION PROGRAM.— 
The term ‘covered acquisition program’ means 
any acquisition program of the Department of 
Defense other than a major defense acquisition 
program, but does not include any contract
330 
awarded under an exception to competitive ac-
quisition authorized by the Small Business Act 
(15 U.S.C. 631 et seq.) 
‘‘(C) 
LEVEL
OF
PERFORMANCE.—The 
term ‘level of performance’, with respect to a 
nondevelopmental item, means the extent to 
which the item demonstrates required item 
functional characteristics. 
‘‘(5) SUNSET.—The authority to carry out the 
pilot program under this subsection shall terminate 
on the date that is five years after the date of the 
enactment of this Act.’’. 
SEC. 828. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) COMPETITION REQUIREMENTS FOR TASK OR DE-
LIVERY ORDERS UNDER ENERGY SAVINGS PERFORM-
ANCE CONTRACTS.—Section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) is amended by 
adding at the end the following: 
‘‘(c) TASK OR DELIVERY ORDERS.—(1) The head of 
a Federal agency may issue a task or delivery order under 
an energy savings performance contract by— 
‘‘(A) notifying all contractors that have received 
an award under such contract that the agency pro-
poses to discuss energy savings performance services 
for some or all of its facilities and, following a rea-
331 
sonable period of time to provide a proposal in re-
sponse to the notice, soliciting from such contractors 
the submission of expressions of interest in, and con-
tractor qualifications for, performing site surveys or 
investigations and feasibility designs and studies, 
and including in the notice summary information 
concerning energy use for any facilities that the 
agency has specific interest in including in such task 
or delivery order; 
‘‘(B) reviewing all expressions of interest and 
qualifications submitted pursuant to the notice 
under subparagraph (A); 
‘‘(C) selecting two or more contractors (from 
among those reviewed under subparagraph (B)) to 
conduct discussions concerning the contractors’ re-
spective qualifications to implement potential energy 
conservation measures, including— 
‘‘(i) requesting references and specific de-
tailed examples with respect to similar efforts 
and the resulting energy savings of such similar 
efforts; and 
‘‘(ii) requesting an explanation of how such 
similar efforts relate to the scope and content 
of the task or delivery order concerned; 
‘‘(D) selecting and authorizing—
332 
‘‘(i) more than one contractor (from 
among those selected under subparagraph (C)) 
to conduct site surveys, investigations, feasi-
bility designs and studies, or similar assess-
ments for the energy savings performance con-
tract services (or for discrete portions of such 
services), for the purpose of allowing each such 
contractor to submit a firm, fixed-price proposal 
to implement specific energy conservation meas-
ures; or 
‘‘(ii) one contractor (from among those se-
lected under subparagraph (C)) to conduct a 
site survey, investigation, feasibility design and 
study, or similar assessment for the purpose of 
allowing the contractor to submit a firm, fixed- 
price proposal to implement specific energy con-
servation measures; 
‘‘(E) providing a debriefing to any contractor 
not selected under subparagraph (D); 
‘‘(F) negotiating a task or delivery order for en-
ergy savings performance contracting services with 
the contractor or contractors selected under sub-
paragraph (D) based on the energy conservation 
measures identified; and
333 
‘‘(G) issuing a task or delivery order for energy 
savings performance contracting services to such 
contractor or contractors. 
‘‘(2) The issuance of a task or delivery order for en-
ergy savings performance contracting services pursuant to 
paragraph (1) is deemed to satisfy the task and delivery 
order competition requirements in section 2304c(d) of title 
10, United States Code, and section 303J(d) of the Fed-
eral Property and Administrative Services Act of 1949 (41 
U.S.C. 253j(d)). 
‘‘(3) The Secretary may issue guidance as necessary 
to agencies issuing task or delivery orders pursuant to 
paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) is inapplicable to task or delivery orders 
issued before the date of enactment of this Act. 
SEC. 829. DEFINITION OF MATERIALS CRITICAL TO NA-
TIONAL SECURITY. 
(a) DEFINITIONS.—Section 187 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘materials critical to national se-
curity’ means materials—
334 
‘‘(A) upon which the production or 
sustainment of military equipment is depend-
ent; and 
‘‘(B) the supply of which could be re-
stricted by actions or events outside the control 
of the Government of the United States. 
‘‘(2) The term ‘military equipment’ means 
equipment used directly by the armed forces to carry 
out military operations. 
‘‘(3) The term ‘secure supply’, with respect to 
a material, means the availability of a source or 
sources for the material, including the full supply 
chain for the material and components containing 
the material.’’. 
(b) AMENDMENT RELATING TO DUTIES.—Subsection 
(b) of section 187 of such title is amended to read as fol-
lows: 
‘‘(b) DUTIES.—In addition to other matters assigned 
to it by the Secretary of Defense, the Board shall— 
‘‘(1) determine the need to provide a long term 
secure supply of materials designated as critical to 
national security to ensure that national defense 
needs are met; 
‘‘(2) analyze the risk associated with each mate-
rial designated as critical to national security and
335 
the effect on national defense that the nonavail-
ability of such material would have; 
‘‘(3) recommend a strategy to the President to 
ensure a secure supply of materials designated as 
critical to national security; 
‘‘(4) recommend such other strategies to the 
President as the Board considers appropriate to 
strengthen the industrial base with respect to mate-
rials critical to national security; and 
‘‘(5) publish not less frequently than once every 
two years in the Federal Register recommendations 
regarding materials critical to national security, in-
cluding a list of specialty metals, if any, rec-
ommended for addition to, or removal from, the defi-
nition of ‘specialty metal’ for purposes of section 
2533b of this title.’’. 
Subtitle D—Contractor Matters 
SEC. 831. OVERSIGHT AND ACCOUNTABILITY OF CONTRAC-
TORS 
PERFORMING 
PRIVATE 
SECURITY 
FUNCTIONS IN AREAS OF COMBAT OPER-
ATIONS. 
(a) ENHANCEMENT OF OVERSIGHT AND ACCOUNT-
ABILITY.—Section 862 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 2302 note) is amended—
336 
(1) in subsection (b)(2)— 
(A) in subparagraph (A), by striking 
‘‘comply with regulations’’ and inserting ‘‘en-
sure that the contractor and all employees of 
the contractor or any subcontractor who are re-
sponsible for performing private security func-
tions under such contract comply with regula-
tions’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘comply with’’ and all 
that follows through ‘‘in accordance with’’ 
and inserting ‘‘ensure that the contractor 
and all employees of the contractor or any 
subcontractor who are responsible for per-
forming private security functions under 
such contract comply with’’; and 
(ii) by striking ‘‘and’’ at the end; 
(C) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
subparagraph: 
‘‘(D) ensure that the contract clause is in-
cluded in subcontracts awarded to any subcon-
tractor at any tier who is responsible for per-
337 
forming private security functions under the 
contract.’’; 
(2) by redesignating subsections (c) and (d) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (b) the fol-
lowing new subsections: 
‘‘(c) OVERSIGHT.—It shall be the responsibility of the 
head of the contracting activity responsible for each cov-
ered contract to ensure that the contracting activity takes 
appropriate steps to assign sufficient oversight personnel 
to the contract to— 
‘‘(1) ensure that the contractor responsible for 
performing private security functions under such 
contract comply with the regulatory requirements 
prescribed pursuant to subsection (a) and the con-
tract requirements established pursuant to sub-
section (b); and 
‘‘(2) make the determinations required by sub-
section (d). 
‘‘(d) REMEDIES.—The failure of a contractor under 
a covered contract to comply with the requirements of the 
regulations prescribed under subsection (a) or the contract 
clause inserted in a covered contract pursuant to sub-
section (b), as determined by the contracting officer for 
the covered contract—
338 
‘‘(1) shall be included in appropriate databases 
of past performance and considered in any responsi-
bility determination or evaluation of the past per-
formance of the contractor for the purpose of a con-
tract award decision, as provided in section 6(j) of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 405(j)); 
‘‘(2) in the case of an award fee contract— 
‘‘(A) shall be considered in any evaluation 
of contract performance by the contractor for 
the relevant award fee period; and 
‘‘(B) may be a basis for reducing or deny-
ing award fees for such period, or for recov-
ering all or part of award fees previously paid 
for such period; and 
‘‘(3) in the case of a failure to comply that is 
severe, prolonged, or repeated— 
‘‘(A) shall be referred to the suspension or 
debarment official for the appropriate agency; 
and 
‘‘(B) may be a basis for suspension or de-
barment of the contractor. 
‘‘(e) RULE OF CONSTRUCTION.—The duty of a con-
tractor under a covered contract to comply with the re-
quirements of the regulations prescribed under subsection
339 
(a) and the contract clause inserted into a covered con-
tract pursuant to subsection (b), and the availability of 
the remedies provided in subsection (d), shall not be re-
duced or diminished by the failure of a higher or lower 
tier contractor under such contract to comply with such 
requirements, or by a failure of the contracting activity 
to provide the oversight required by subsection (c).’’. 
(b) 
REVISED
REGULATIONS
AND
CONTRACT 
CLAUSE.— 
(1) DEADLINE FOR REGULATIONS.—Not later 
than 60 days after the date of the enactment of this 
Act, the Secretary of Defense shall revise the regula-
tions prescribed pursuant to section 862 of the Na-
tional Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 10 U.S.C. 2302 note) 
to incorporate the requirements of the amendments 
made by subsection (a). 
(2) COMMENCEMENT OF APPLICABILITY OF RE-
VISIONS.—The revision of regulations under para-
graph (1) shall apply to the following: 
(A) Any contract that is awarded on or 
after the date that is 120 days after the date 
of the enactment of this Act. 
(B) Any task or delivery order that is 
issued on or after the date that is 120 days
340 
after the date of the enactment of this Act pur-
suant to a contract that is awarded before, on, 
or after the date that is 120 days after the date 
of the enactment of this Act. 
(3) COMMENCEMENT OF INCLUSION OF CON-
TRACT CLAUSE.—A contract clause that reflects the 
revision of regulations required by the amendments 
made by subsection (a) shall be inserted, as required 
by such section 862, into the following: 
(A) Any contract described in paragraph 
(2)(A). 
(B) Any task or delivery order described in 
paragraph (2)(B). 
SEC. 832. EXTENSION OF REGULATIONS ON CONTRACTORS 
PERFORMING 
PRIVATE 
SECURITY 
FUNC-
TIONS TO AREAS OF OTHER SIGNIFICANT 
MILITARY OPERATIONS. 
(a) AREAS OF OTHER SIGNIFICANT MILITARY OPER-
ATIONS.—Section 862 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 2302 note), as amended by section 831, is further 
amended— 
(1) by striking ‘‘combat operations’’ each place 
it appears and inserting ‘‘combat operations or other 
significant military operations’’; and
341 
(2) in subsection (f), as redesignated by such 
section 831— 
(A) by redesignating paragraphs (2), (3), 
and (4) as paragraphs (3), (4), and (5), respec-
tively; 
(B) in paragraph (1)— 
(i) by inserting ‘‘either’’ after ‘‘consti-
tuting’’; and 
(ii) by adding at the end the fol-
lowing: ‘‘In making designations under this 
paragraph, the Secretary shall ensure that 
an area is not designated in whole or part 
as both an area of combat operations and 
an area of other significant military oper-
ations.’’; and 
(C) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) OTHER
SIGNIFICANT
MILITARY
OPER-
ATIONS.—For purposes of this section, the term 
‘other significant military operations’ means activi-
ties, other than combat operations, as part of an 
overseas contingency operation that are carried out 
by United States Armed Forces in an uncontrolled 
or unpredictable high-threat environment where per-
342 
sonnel performing security functions may be called 
upon to use deadly force.’’. 
(b) ADDITIONAL AREAS CONSIDERED FOR DESIGNA-
TION.— 
(1) DETERMINATION REQUIRED FOR CERTAIN 
AREAS.—Not later than 150 days after the date of 
the enactment of this Act, the Secretary of Defense 
shall make a written determination for each of the 
following areas regarding whether or not the area 
constitutes an area of combat operations or an area 
of other significant military operations for purposes 
of designation as such an area under section 862 of 
the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 10 U.S.C. 2302 
note), as amended by this section: 
(A) The Horn of Africa region. 
(B) Yemen. 
(C) The Philippines. 
(2) SUBMISSION TO CONGRESS.—Not later than 
180 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the con-
gressional defense committees a copy of each written 
determination under paragraph (1), together with an 
explanation of the basis for such determination.
343 
(c) LIMITATION AND EXCEPTION.—Section 862 of 
the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 10 U.S.C. 2302 note), as 
amended by subsection (a) and by section 831, is further 
amended— 
(1) by redesignating subsection (g), as redesig-
nated by such section 831, as subsection (h) and in-
serting after subsection (f) the following new sub-
section (g): 
‘‘(g) LIMITATION.—With respect to an area of other 
significant military operations, the requirements of this 
section shall apply only upon agreement of the Secretary 
of Defense and the Secretary of State. An agreement of 
the Secretaries under this subsection may be made only 
on an area-by-area basis. With respect to an area of com-
bat operations, the requirements of this section shall al-
ways apply.’’; and 
(2) in subsection (h), as so redesignated— 
(A) by striking the subsection designation 
and ‘‘EXCEPTION.—’’ and inserting the fol-
lowing: 
‘‘(h) EXCEPTIONS.— 
‘‘(1) INTELLIGENCE ACTIVITIES.—’’; and 
(B) by adding at the end the following new 
paragraph:
344 
‘‘(2) NONGOVERNMENTAL
ORGANIZATIONS.— 
The requirements of this section shall not apply to 
a nonprofit nongovernmental organization receiving 
grants or cooperative agreements for activities con-
ducted within an area of other significant military 
operations if the Secretary of Defense and the Sec-
retary of State agree that such organization may be 
exempted. An exemption may be granted by the 
agreement of the Secretaries under this paragraph 
on an organization-by-organization or area-by-area 
basis. Such an exemption may not be granted with 
respect to an area of combat operations.’’. 
(d) REPORT ON IMPLEMENTATION.—Not later than 
180 days after a designation of an area as an area of com-
bat operations or an area of other significant military op-
erations pursuant to subsection (b)(2), the Secretary of 
Defense, in coordination with the Secretary of State, shall 
submit to Congress a report on steps taken or planned 
to be taken to implement the regulations prescribed under 
section 862 of the National Defense Authorization Act for 
Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2302 
note) in such area. In the case of any agreement by the 
Secretaries to limit the applicability of such section or ex-
empt nongovernmental organizations from such section, 
pursuant to subsections (g) or (h)(1) of such section (as
345 
added by subsection (c)), the report shall document the 
basis for such agreement. 
SEC. 833. STANDARDS AND CERTIFICATION FOR PRIVATE 
SECURITY CONTRACTORS. 
(a) REVIEW OF THIRD-PARTY STANDARDS AND CER-
TIFICATION PROCESSES.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall— 
(1) determine whether the private sector has 
developed— 
(A) operational and business practice 
standards applicable to private security contrac-
tors; and 
(B) third-party certification processes for 
determining whether private security contrac-
tors adhere to standards described in subpara-
graph (A); and 
(2) review any standards and processes identi-
fied pursuant to paragraph (1) to determine whether 
the application of such standards and processes will 
make a substantial contribution to the successful 
performance of private security functions in areas of 
combat operations or other significant military oper-
ations.
346 
(b) REVISED REGULATIONS.—Not later than 270 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall revise the regulations promulgated 
under section 862 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 
2302 note) to ensure that such regulations— 
(1) establish criteria for defining standard prac-
tices for the performance of private security func-
tions, which shall reflect input from industry rep-
resentatives as well as the Inspector General of the 
Department of Defense; and 
(2) establish criteria for weapons training pro-
grams for contractors performing private security 
functions, including minimum requirements for 
weapons training programs of instruction and min-
imum qualifications for instructors for such pro-
grams. 
(c) INCLUSION OF THIRD-PARTY STANDARDS AND 
CERTIFICATIONS IN REVISED REGULATIONS.— 
(1) STANDARDS.—If the Secretary determines 
that the application of operational and business 
practice standards identified pursuant to subsection 
(a)(1)(A) will make a substantial contribution to the 
successful performance of private security functions 
in areas of combat operations or other significant
347 
military operations, the revised regulations promul-
gated pursuant to subsection (b) shall incorporate a 
requirement to comply with such standards, subject 
to such exceptions as the Secretary may determine 
to be necessary. 
(2) CERTIFICATIONS.—If the Secretary deter-
mines that the application of a third-party certifi-
cation process identified pursuant to subsection 
(a)(1)(B) will make a substantial contribution to the 
successful performance of private security functions 
in areas of combat operations or other significant 
military operations, the revised regulations promul-
gated pursuant to subsection (b) may provide for the 
consideration of such certifications as a factor in the 
evaluation of proposals for award of a covered con-
tract for the provision of private security functions, 
subject to such exceptions as the Secretary may de-
termine to be necessary. 
(d) DEFINITIONS.—In this section: 
(1) COVERED CONTRACT.—The term ‘‘covered 
contract’’ means— 
(A) a contract of the Department of De-
fense for the performance of services; 
(B) a subcontract at any tier under such 
a contract; or
348 
(C) a task order or delivery order issued 
under such a contract or subcontract. 
(2) 
CONTRACTOR.—The 
term 
‘‘contractor’’ 
means, with respect to a covered contract, the con-
tractor or subcontractor carrying out the covered 
contract. 
(3) PRIVATE SECURITY FUNCTIONS.—The term 
‘‘private security functions’’ means activities en-
gaged in by a contractor under a covered contract as 
follows: 
(A) Guarding of personnel, facilities, or 
property of a Federal agency, the contractor or 
subcontractor, or a third party. 
(B) Any other activity for which personnel 
are required to carry weapons in the perform-
ance of their duties. 
(e) EXCEPTION.—The requirements of this section 
shall not apply to contracts entered into by elements of 
the intelligence community in support of intelligence ac-
tivities.
349 
SEC. 834. ENHANCEMENTS OF AUTHORITY OF SECRETARY 
OF DEFENSE TO REDUCE OR DENY AWARD 
FEES TO COMPANIES FOUND TO JEOPARDIZE 
THE HEALTH OR SAFETY OF GOVERNMENT 
PERSONNEL. 
(a) EXPANSION OF DISPOSITIONS SUBJECT TO AU-
THORITY.—Section 823 of the National Defense Author-
ization Act for Fiscal Year 2010 (Public Law 111–84; 123 
Stat. 2412; 10 U.S.C. 2302 note) is amended— 
(1) in subsection (c), by adding at the end the 
following new paragraph: 
‘‘(5) In an administrative proceeding, a final 
determination of contractor fault by the Secretary of 
Defense pursuant to subsection (d).’’; 
(2) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(3) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) DETERMINATIONS OF CONTRACTOR FAULT BY 
SECRETARY OF DEFENSE.— 
‘‘(1) IN GENERAL.—In any case described by 
paragraph (2), the Secretary of Defense shall— 
‘‘(A) provide for an expeditious inde-
pendent investigation of the causes of the seri-
ous bodily injury or death alleged to have been
350 
caused by the contractor as described in that 
paragraph; and 
‘‘(B) make a final determination, pursuant 
to procedures established by the Secretary for 
purposes of this subsection, whether the con-
tractor, in the performance of a covered con-
tract, caused such serious bodily injury or death 
through gross negligence or with reckless dis-
regard for the safety of civilian or military per-
sonnel of the Government. 
‘‘(2) COVERED CASES.—A case described in this 
paragraph is any case in which the Secretary has 
reason to believe that— 
‘‘(A) a contractor, in the performance of a 
covered contract, may have caused the serious 
bodily injury or death of any civilian or military 
personnel of the Government; and 
‘‘(B) such contractor is not subject to the 
jurisdiction of United States courts. 
‘‘(3) CONSTRUCTION
OF
DETERMINATION.—A 
final determination under this subsection may be 
used only for the purpose of evaluating contractor 
performance, and shall not be determinative of fault 
for any other purpose.’’.
351 
(b) DEFINITION OF CONTRACTOR.—Paragraph (1) of 
subsection (e) of such section, as redesignated by sub-
section (a)(2) of this section, is amended to read as fol-
lows: 
‘‘(1) The term ‘contractor’ means a company 
awarded a covered contract and a subcontractor at 
any tier under such contract.’’. 
(c) TECHNICAL AMENDMENT.—Subsection (c) of 
such section is further amended in the matter preceding 
paragraph (1) by striking ‘‘subsection (a)’’ and inserting 
‘‘subsection (b)’’. 
(d) INCLUSION
OF
DETERMINATIONS
OF
CON-
TRACTOR FAULT IN DATABASE FOR FEDERAL AGENCY 
CONTRACT AND GRANT OFFICERS AND SUSPENSION AND 
DEBARMENT OFFICIALS.—Section 872(c)(1) of the Dun-
can Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110–417; 122 Stat. 4556) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) In an administrative proceeding, a 
final determination of contractor fault by the 
Secretary of Defense pursuant to section 
823(d) of the National Defense Authorization 
Act for Fiscal Year 2010 (10 U.S.C. 2302 
note).’’.
352 
(e) EFFECTIVE DATE.—The requirements of section 
823 of the National Defense Authorization Act for Fiscal 
Year 2010, as amended by subsections (a) through (c), 
shall apply with respect to the following: 
(1) Any contract entered into on or after the 
date of the enactment of this Act. 
(2) Any task order or delivery order issued on 
or after the date of the enactment of this Act under 
a contract entered into before, on, or after that date. 
SEC. 835. ANNUAL JOINT REPORT AND COMPTROLLER 
GENERAL REVIEW ON CONTRACTING IN IRAQ 
AND AFGHANISTAN. 
Section 863 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 
2302 note) is amended to read as follows: 
‘‘SEC. 863. ANNUAL JOINT REPORT AND COMPTROLLER 
GENERAL REVIEW ON CONTRACTING IN IRAQ 
AND AFGHANISTAN. 
‘‘(a) JOINT REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (6), every 12 months, the Secretary of De-
fense, the Secretary of State, and the Administrator 
of the United States Agency for International Devel-
opment shall submit to the relevant committees of
353 
Congress a joint report on contracts in Iraq or Af-
ghanistan. 
‘‘(2) PRIMARY MATTERS COVERED.—A report 
under this subsection shall, at a minimum, cover the 
following with respect to contracts in Iraq and Af-
ghanistan during the reporting period: 
‘‘(A) Total number of contracts awarded. 
‘‘(B) Total number of active contracts. 
‘‘(C) Total value of all contracts awarded. 
‘‘(D) Total value of active contracts. 
‘‘(E) The extent to which such contracts 
have used competitive procedures. 
‘‘(F) Total number of contractor personnel 
working on contracts at the end of each quarter 
of the reporting period. 
‘‘(G) Total number of contractor personnel 
who are performing security functions at the 
end of each quarter of the reporting period. 
‘‘(H) Total number of contractor personnel 
killed or wounded. 
‘‘(3) ADDITIONAL MATTERS COVERED.—A re-
port under this subsection shall also cover the fol-
lowing:
354 
‘‘(A) The sources of information and data 
used to compile the information required under 
paragraph (2). 
‘‘(B) A description of any known limita-
tions of the data reported under paragraph (2), 
including known limitations of the methodology 
and data sources used to compile the report. 
‘‘(C) Any plans for strengthening collec-
tion, coordination, and sharing of information 
on contracts in Iraq and Afghanistan through 
improvements to the common databases identi-
fied under section 861(b)(4). 
‘‘(4) REPORTING PERIOD.—A report under this 
subsection shall cover a period of not less than 12 
months. 
‘‘(5) SUBMISSION
OF
REPORTS.—The Secre-
taries and the Administrator shall submit an initial 
report under this subsection not later than February 
1, 2011, and shall submit an updated report by Feb-
ruary 1 of every year thereafter until February 1, 
2013. 
‘‘(6) EXCEPTION.—If the total annual amount 
of obligations for contracts in Iraq and Afghanistan 
combined is less than $250,000,000 for the report-
ing period, for all three agencies combined, the Sec-
355 
retaries and the Administrator may submit, in lieu 
of a report, a letter stating the applicability of this 
paragraph, with such documentation as the Secre-
taries and the Administrator consider appropriate. 
‘‘(7) ESTIMATES.—In determining the total 
number of contractor personnel working on contracts 
under paragraph (2)(F), the Secretaries and the Ad-
ministrator may use estimates for any category of 
contractor personnel for which they determine it is 
not feasible to provide an actual count. The report 
shall fully disclose the extent to which estimates are 
used in lieu of an actual count. 
‘‘(b) COMPTROLLER GENERAL REVIEW
AND RE-
PORT.— 
‘‘(1) IN GENERAL.—Within 180 days after sub-
mission of each annual joint report required under 
subsection (a), but in no case later than August 5 
of each year until 2013, the Comptroller General of 
the United States shall review the joint report and 
submit to the relevant committees of Congress a re-
port on such review. 
‘‘(2) MATTERS COVERED.—A report under this 
subsection shall, at minimum— 
‘‘(A) assess the data and data sources used 
in developing the joint report;
356 
‘‘(B) review how the Department of De-
fense, the Department of State, and the United 
States Agency for International Development 
are using the data and the data sources used to 
develop the joint report in managing, over-
seeing, and coordinating contracting in Iraq 
and Afghanistan; 
‘‘(C) assess the plans of the departments 
and agency for strengthening or improving the 
common databases identified under section 
861(b)(4); and 
‘‘(D) review and make recommendations on 
any specific contract or class of contracts that 
the Comptroller General determines raises 
issues of significant concern. 
‘‘(3) ACCESS TO DATABASES AND OTHER IN-
FORMATION.—The Secretary of Defense, the Sec-
retary of State, and the Administrator of the United 
States Agency for International Development shall 
provide to the Comptroller General full access to in-
formation on contracts in Iraq and Afghanistan for 
the purposes of the review carried out under this 
subsection, including the common databases identi-
fied under section 861(b)(4).’’.
357 
Subtitle E—Other Matters 
SEC. 841. IMPROVEMENTS TO STRUCTURE AND FUNC-
TIONING OF JOINT REQUIREMENTS OVER-
SIGHT COUNCIL. 
(a) VICE CHAIRMAN OF JOINT CHIEFS OF STAFF TO 
BE CHAIRMAN OF COUNCIL.—Subsection (c) of section 
181 of title 10, United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘Vice’’ before 
‘‘Chairman of the Joint Chiefs of Staff’’; 
(2) in paragraph (2), by striking ‘‘, other than 
the Chairman of the Joint Chiefs of Staff,’’ and in-
serting ‘‘under subparagraphs (B), (C), (D), and 
(E) of paragraph (1)’’; and 
(3) by striking paragraph (3). 
(b) ROLE OF COMMANDERS OF COMBATANT COM-
MANDS AS MEMBERS OF COUNCIL.—Paragraph (1) of 
subsection (c) of such section is further amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (E), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) in addition, when directed by the chair-
man, the commander of any combatant command
358 
(or, as directed by that commander, the deputy com-
mander of that command) when matters related to 
the area of responsibility or functions of that com-
mand will be under consideration by the Council.’’. 
(c) CIVILIAN ADVISORS.— 
(1) ADDITIONAL
CIVILIAN
ADVISORS.—Sub-
section (d) of such section is amended by striking 
‘‘The Under Secretary’’ and all that follows through 
‘‘and expertise.’’ and inserting: ‘‘The following offi-
cials of the Department of Defense shall serve as ad-
visors to the Council on matters within their author-
ity and expertise: 
‘‘(A) The Under Secretary of Defense for 
Acquisition, Technology, and Logistics. 
‘‘(B) The Under Secretary of Defense 
(Comptroller). 
‘‘(C) The Under Secretary of Defense for 
Policy. 
‘‘(D) The Director of Cost Assessment and 
Program Evaluation. 
‘‘(E) The Director of Operational Test and 
Evaluation. 
‘‘(F) Such other civilian officials of the De-
partment of Defense as are designated by the
359 
Secretary of Defense for purposes of this sub-
section.’’. 
(2) 
CONFORMING
AMENDMENT.—Subsection 
(b)(3) of such section is amended by striking 
‘‘Under Secretary of Defense (Comptroller), the 
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, and the Director of Cost As-
sessment and Performance Evaluation’’ and insert-
ing ‘‘advisors to the Council under subsection (d)’’. 
(d) RECOGNITION
OF
PERMANENT
NATURE
OF 
COUNCIL.—Subsection (a) of such section is amended by 
striking ‘‘The Secretary of Defense shall establish’’ and 
inserting ‘‘There is’’. 
SEC. 842. DEPARTMENT OF DEFENSE POLICY ON ACQUISI-
TION AND PERFORMANCE OF SUSTAINABLE 
PRODUCTS AND SERVICES. 
(a) FINDING.—Congress finds the following: 
(1) Executive Order No. 13514, dated October 
5, 2009, requires the departments and agencies of 
the Federal Government to establish an integrated 
strategy towards the procurement of sustainable 
products and services. 
(2) The Department of Defense Strategic Sus-
tainability Performance Plan, issued in August 
2010, provides a framework for the Department’s
360 
compliance with Executive Order No. 13514 and 
other applicable sustainability requirements. 
(b) REPORT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
defense committees a report on the status of the 
achievement by the Department of Defense of the 
objectives and goals on the procurement of sustain-
able products and services established by section 
2(h) of Executive Order No. 13514. 
(2) ELEMENTS.—The report required by para-
graph (1) shall include the following: 
(A) A description of the actions taken, and 
to be taken, by the Department to identify par-
ticular sustainable products and services that 
contribute to the achievement of the objectives 
and goals described in paragraph (1). 
(B) An assessment of the tools available to 
the Department to promote the use of par-
ticular sustainable products and services identi-
fied pursuant to the actions described in sub-
paragraph (A) across the Department, and a 
description of the actions taken, and to be 
taken, by the Department to use such tools.
361 
(C) A description of strategies and tools 
identified by the Department that could assist 
the other departments and agencies of the Fed-
eral Government in procuring sustainable prod-
ucts and services, including a description of 
mechanisms for sharing best practices in such 
procurement, as identified by the Department, 
among the other departments and agencies of 
the Federal Government. 
(D) An assessment of the progress the De-
partment has made toward the achievement of 
the objectives and goals described in paragraph 
(1), including the scorecard identified in its 
Strategic Sustainability Performance Plan. 
SEC. 843. ASSESSMENT AND PLAN FOR CRITICAL RARE 
EARTH MATERIALS IN DEFENSE APPLICA-
TIONS. 
(a) ASSESSMENT REQUIRED.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall undertake an assessment of the supply and de-
mand for rare earth materials in defense applica-
tions and identify which, if any, rare earth material 
meets both of the following criteria:
362 
(A) The rare earth material is critical to 
the production, sustainment, or operation of 
significant United States military equipment. 
(B) The rare earth material is subject to 
interruption of supply, based on actions or 
events outside the control of the Government of 
the United States. 
(2) EVALUATION OF SUPPLY.—The assessment 
shall include a comprehensive evaluation of the long- 
term security and availability of all aspects of the 
supply chain for rare earth materials in defense ap-
plications, particularly the location and number of 
sources at each step of the supply chain, including— 
(A) mining of rare earth ores; 
(B) separation of rare earth oxides; 
(C) refining and reduction of rare earth 
metals; 
(D) creation of rare earth alloys; 
(E) manufacturing of components and sys-
tems containing rare earth materials; and 
(F) recycling of components and systems 
to reclaim and reuse rare earth materials. 
(3) EVALUATION OF DEMAND.—The assessment 
shall include a comprehensive evaluation of the de-
363 
mand for and usage of rare earth materials in all de-
fense applications, including— 
(A) approximations of the total amounts of 
individual rare earth materials used in defense 
applications; 
(B) determinations of which, if any, de-
fense applications are dependent upon rare 
earth materials for proper operation and func-
tioning; and 
(C) assessments of the feasibility of alter-
natives to usage of rare earth materials in de-
fense applications. 
(4) OTHER STUDIES AND AGENCIES.—Any ap-
plicable studies conducted by the Department of De-
fense, the Comptroller General of the United States, 
or other Federal agencies during fiscal year 2010 
may be considered as partial fulfillment of the re-
quirements of this section. The Secretary may con-
sider the views of other Federal agencies, as appro-
priate. 
(5) SPECIFIC MATERIAL INCLUDED.—At a min-
imum, the Secretary shall identify sintered neodym-
ium iron boron magnets as meeting the criteria spec-
ified in paragraph (1).
364 
(b) PLAN.—For each rare earth material identified 
pursuant to subsection (a)(1), the Secretary shall develop 
a plan to ensure the long-term availability of such rare 
earth material, with a goal of establishing an assured 
source of supply of such material in critical defense appli-
cations by December 31, 2015. In developing the plan, the 
Secretary shall consider all aspects of the material’s sup-
ply chain, as described in subsection (a)(2). The plan shall 
include consideration of numerous risk mitigation methods 
with respect to the material, including— 
(1) an assessment of including the material in 
the National Defense Stockpile; 
(2) in consultation with the United States 
Trade Representative, the identification of any trade 
practices known to the Secretary that limit the Sec-
retary’s ability to ensure the long-term availability of 
such material or the ability to meet the goal of es-
tablishing an assured source of supply of such mate-
rial by December 31, 2015; 
(3) an assessment of the availability of financ-
ing to industry, academic institutions, or not-for- 
profit entities to provide the capacity required to en-
sure the availability of the material, as well as po-
tential mechanisms to increase the availability of 
such financing;
365 
(4) an assessment of the benefits, if any, of De-
fense Production Act funding to support the estab-
lishment of an assured source of supply for military 
components; 
(5) an assessment of funding for research and 
development related to any aspect of the rare earth 
material supply chain or research on alternatives 
and substitutes; 
(6) any other risk mitigation method deter-
mined appropriate by the Secretary that is con-
sistent with the goal of establishing an assured 
source of supply by December 31, 2015; and 
(7) for steps of the rare earth material supply 
chain for which no other risk mitigation method, as 
described in paragraphs (1) through (6), will ensure 
an assured source of supply by December 31, 2015, 
a specific plan to eliminate supply chain vulner-
ability by the earliest date practicable. 
(c) REPORT.— 
(1) REQUIREMENT.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
committees described in paragraph (2) a report con-
taining the findings of the assessment required
366 
under subsection (a) and the plan developed under 
subsection (b). 
(2) CONGRESSIONAL
COMMITTEES.—The con-
gressional committees described in this paragraph 
are as follows: 
(A) The congressional defense committees. 
(B) The Committee on Science and Tech-
nology, the Committee on Financial Services, 
and the Committee on Ways and Means of the 
House of Representatives. 
(C) The Committee on Energy and Nat-
ural Resources, the Committee on Finance, and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
SEC. 844. REVIEW OF NATIONAL SECURITY EXCEPTION TO 
COMPETITION. 
(a) REVIEW REQUIRED.—The Comptroller General 
of the United States shall review the use of the national 
security exception to full and open competition provided 
in section 2304(c)(6) of title 10, United States Code, by 
the Department of Defense. 
(b) MATTERS REVIEWED.—The review of the use of 
the national security exception required by subsection (a) 
shall include—
367 
(1) the pattern of usage of such exception by 
acquisition organizations within the Department to 
determine which organizations are commonly using 
the exception and the frequency of such usage; 
(2) the range of items or services being ac-
quired through the use of such exception; 
(3) the process for reviewing and approving jus-
tifications involving such exception; 
(4) whether the justifications for use of such 
exception typically meet the relevant requirements of 
the Federal Acquisition Regulation applicable to the 
use of such exception; 
(5) issues associated with follow-on procure-
ments for items or services acquired using such ex-
ception; and 
(6) potential additional instances where such 
exception could be applied and any authorities avail-
able to the Department other than such exception 
that could be applied in such instances. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committees on Armed Services of the Sen-
ate and the House of Representatives a report on the re-
view required by subsection (a), including a discussion of 
each of the matters specified in subsection (b). The report
368 
shall include any recommendations relating to the matters 
reviewed that the Secretary considers appropriate. The re-
port shall be submitted in unclassified form but may in-
clude a classified annex. 
SEC. 845. REQUIREMENT FOR ENTITIES WITH FACILITY 
CLEARANCES THAT ARE NOT UNDER FOR-
EIGN OWNERSHIP CONTROL OR INFLUENCE 
MITIGATION. 
(a) REQUIREMENT.—The Secretary of Defense shall 
develop a plan to ensure that covered entities employ and 
maintain policies and procedures that meet requirements 
under the national industrial security program. In devel-
oping the plan, the Secretary shall consider whether or 
not covered entities, or any category of covered entities, 
should be required to establish government security com-
mittees similar to those required for companies that are 
subject to foreign ownership control or influence mitiga-
tion measures. 
(b) COVERED ENTITY.—A covered entity under this 
section is an entity— 
(1) to which the Department of Defense has 
granted a facility clearance; and 
(2) that is not subject to foreign ownership con-
trol or influence mitigation measures.
369 
(c) GUIDANCE.—The Secretary of Defense shall issue 
guidance, including appropriate compliance mechanisms, 
to implement the requirement in subsection (a). To the 
extent determined appropriate by the Secretary, the guid-
ance shall require covered entities, or any category of cov-
ered entities, to establish government security committees 
similar to those required for companies that are subject 
to foreign ownership control or influence mitigation meas-
ures. 
(d) REPORT.—Not later than 270 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 House of Representatives a report on the plan devel-
oped pursuant to subsection (a) and the guidance issued 
pursuant to subsection (c). The report shall specifically 
address the rationale for the Secretary’s decision on 
whether or not to require covered entities, or any category 
of covered entities, to establish government security com-
mittees similar to those required for companies that are 
subject to foreign ownership control or influence mitiga-
tion measures. 
SEC. 846. PROCUREMENT OF PHOTOVOLTAIC DEVICES. 
(a) CONTRACT REQUIREMENT.—The Secretary of 
Defense shall ensure that each contract described in sub-
section (b) awarded by the Department of Defense in-
370 
cludes a provision requiring the photovoltaic devices pro-
vided under the contract to comply with the Buy American 
Act (41 U.S.C. 10a et seq.), subject to the exceptions to 
that Act provided in the Trade Agreements Act of 1979 
(19 U.S.C. 2501 et seq.) or otherwise provided by law. 
(b) CONTRACTS DESCRIBED.—The contracts de-
scribed in this subsection include energy savings perform-
ance contracts, utility service contracts, land leases, and 
private housing contracts, to the extent that such con-
tracts result in ownership of photovoltaic devices by the 
Department of Defense. For the purposes of this section, 
the Department of Defense is deemed to own a photo-
voltaic device if the device is— 
(1) installed on Department of Defense prop-
erty or in a facility owned by the Department of De-
fense; and 
(2) reserved for the exclusive use of the Depart-
ment of Defense for the full economic life of the de-
vice. 
(c) DEFINITION
OF PHOTOVOLTAIC DEVICES.—In 
this section, the term ‘‘photovoltaic devices’’ means devices 
that convert light directly into electricity through a solid- 
state, semiconductor process.
371 
SEC. 847. NON-AVAILABILITY EXCEPTION FROM BUY AMER-
ICAN REQUIREMENTS FOR PROCUREMENT 
OF HAND OR MEASURING TOOLS. 
Section 2533a(c) of title 10, United States Code, is 
amended by striking ‘‘subsection (b)(1)’’ and inserting 
‘‘subsection (b)’’. 
SEC. 848. CONTRACTOR LOGISTICS SUPPORT OF CONTIN-
GENCY OPERATIONS. 
(a) DEFENSE SCIENCE BOARD REVIEW OF ORGANI-
ZATION, TRAINING, AND PLANNING.—Not later than 90 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall direct the Defense Science Board 
to carry out a review of Department of Defense organiza-
tion, doctrine, training, and planning for contractor logis-
tics support of contingency operations. 
(b) MATTERS TO BE ADDRESSED.— 
(1) IN GENERAL.—The matters addressed by 
the review required by subsection(a) shall include, at 
a minimum, the following: 
(A) Department of Defense policies and 
procedures for planning for contractor logistics 
support of contingency operations. 
(B) Department organization and staffing 
for the implementation of such policies and pro-
cedures.
372 
(C) The development of Department doc-
trine for contractor logistics support of contin-
gency operations. 
(D) The training of Department military 
and civilian personnel for the planning, man-
agement, and oversight of contractor logistics 
support of contingency operations. 
(E) The extent to which the Department 
should rely upon contractor logistics support in 
future contingency operations, and the risks as-
sociated with reliance on such support. 
(F) Any logistics support functions for 
contingency operations for which the Depart-
ment should establish or retain an organic ca-
pability. 
(G) The scope and level of detail on con-
tractor logistics support of contingency oper-
ations that is currently included in operational 
plans, and that should be included in oper-
ational plans. 
(H) Contracting mechanisms and contract 
vehicles that are currently used, and should be 
used, to provide contractor logistics support of 
contingency operations.
373 
(I) Department organization and staffing 
for the management and oversight of contractor 
logistics support of contingency operations. 
(J) Actions that could be taken to improve 
Department management and oversight of con-
tractors providing logistics support of contin-
gency operations. 
(K) The extent to which logistics support 
of contingency operations has been, and should 
be, provided by subcontractors, and the advan-
tages and disadvantages of reliance upon sub-
contractors for that purpose. 
(L) The extent to which logistics support 
of contingency operations has been, and should 
be, provided by local nationals and third coun-
try nationals, and the advantages and disadvan-
tages of reliance upon such sources for that 
purpose. 
(2) FINDINGS AND RECOMMENDATIONS.—The 
review required by subsection (a) shall include find-
ings and recommendations related to— 
(A) legislative or policy guidance to ad-
dress the matters listed in paragraph (1); and 
(B) whether and to what extent the quad-
rennial defense review (conducted pursuant to
374 
section 118 of title 10, United States Code) or 
assessments by the Chairman of the Joint 
Chiefs of Staff for the biennial review of the na-
tional military strategy (conducted pursuant to 
section 153(d) of such title) should be required 
to address requirements for contractor support 
of the Armed Forces in conducting peacetime 
training, peacekeeping, overseas contingency op-
erations, and major combat operations, and the 
risks associated with such support. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report on the 
results of the review required by subsection (a). The report 
shall include the findings and recommendations of the De-
fense Science Board, including such recommendations for 
legislative or administrative action as the Board considers 
appropriate, together with any comments the Secretary 
considers appropriate. 
Subtitle F—Improve Acquisition 
Act 
SEC. 860. SHORT TITLE. 
This subtitle may be cited as the ‘‘Improve Acquisi-
tion Act of 2010’’.
375 
PART I—DEFENSE ACQUISITION SYSTEM 
SEC. 861. IMPROVEMENTS TO THE MANAGEMENT OF THE 
DEFENSE ACQUISITION SYSTEM. 
(a) MANAGEMENT OF THE DEFENSE ACQUISITION 
SYSTEM.—Part IV of title 10, United States Code, is 
amended by inserting after chapter 148 the following new 
chapter: 
‘‘CHAPTER 149—DEFENSE ACQUISITION 
SYSTEM 
‘‘Sec. 
‘‘2545. Definitions. 
‘‘2546. Civilian management of the defense acquisition system. 
‘‘2547. Acquisition-related functions of chiefs of the armed forces. 
‘‘2548. Performance assessments of the defense acquisition system. 
‘‘§ 2545. Definitions 
‘‘In this chapter: 
‘‘(1) The term ‘acquisition’ has the meaning 
provided in section 4(16) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(16)). 
‘‘(2) The term ‘defense acquisition system’ 
means the workforce engaged in carrying out the ac-
quisition of property and services for the Depart-
ment of Defense; the management structure respon-
sible for directing and overseeing the acquisition of 
property and services for the Department of De-
fense; and the statutory, regulatory, and policy 
framework that guides the acquisition of property 
and services for the Department of Defense.
376 
‘‘(3) The term ‘element of the defense acquisi-
tion system’ means an organization that employs 
members of the acquisition workforce, carries out ac-
quisition functions, and focuses primarily on acquisi-
tion. 
‘‘(4) The term ‘acquisition workforce’ has the 
meaning provided in section 101(a)(18) of this title. 
‘‘§ 2546. Civilian management of the defense acquisi-
tion system 
‘‘(a) RESPONSIBILITY OF THE UNDER SECRETARY 
OF DEFENSE FOR ACQUISITION, TECHNOLOGY, AND LO-
GISTICS.—Subject to the authority, direction and control 
of the Secretary of Defense, the Under Secretary of De-
fense for Acquisition, Technology, and Logistics shall be 
responsible for the management of the defense acquisition 
system and shall exercise such control of the system and 
perform such duties as are necessary to ensure the suc-
cessful and efficient operation of the defense acquisition 
system, including the duties enumerated and assigned to 
the Under Secretary elsewhere in this title. 
‘‘(b) RESPONSIBILITY OF THE SERVICE ACQUISITION 
EXECUTIVES.—Subject to the direction of the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics on matters pertaining to acquisition, and subject to 
the authority, direction, and control of the Secretary of
379 
‘‘(A) justifies the need for a materiel ap-
proach, or an approach that is a combination of 
materiel and non-materiel, to satisfy one or 
more specific capability gaps; 
‘‘(B) details the information necessary to 
develop an increment of militarily useful, 
logistically supportable, and technically mature 
capability, including key performance param-
eters; or 
‘‘(C) identifies production attributes re-
quired for a single increment of a program. 
‘‘§ 2548. Performance assessments of the defense ac-
quisition system 
‘‘(a) PERFORMANCE ASSESSMENTS REQUIRED.—Not 
later than 180 days after the date of the enactment of 
the Ike Skelton National Defense Authorization Act for 
Fiscal Year 2011, the Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, the Director of Procurement 
and Acquisition Policy, and the Director of the Office of 
Performance Assessment and Root Cause Analysis, shall 
issue guidance, with detailed implementation instructions, 
for the Department of Defense to provide for periodic 
independent performance assessments of elements of the 
defense acquisition system for the purpose of—
380 
‘‘(1) determining the extent to which such ele-
ments of the defense acquisition system deliver value 
to the Department of Defense, taking into consider-
ation the performance elements identified in sub-
section (b); 
‘‘(2) assisting senior officials of the Department 
of Defense in identifying and developing lessons 
learned from best practices and shortcomings in the 
performance of such elements of the defense acquisi-
tion system; and 
‘‘(3) assisting senior officials of the Department 
of Defense in developing acquisition workforce excel-
lence under section 1701a of this title 
‘‘(b) AREAS CONSIDERED IN PERFORMANCE ASSESS-
MENTS.—(1) Each performance assessment conducted 
pursuant to subsection (a) shall consider, at a minimum— 
‘‘(A) the extent to which acquisitions conducted 
by the element of the defense acquisition system 
under review meet applicable cost, schedule, and per-
formance objectives; and 
‘‘(B) the staffing and quality of the acquisition 
workforce and the effectiveness of the management 
of the acquisition workforce, including workforce in-
centives and career paths.
381 
‘‘(2) The Secretary of Defense shall ensure that the 
performance assessments required by this section are ap-
propriately tailored to reflect the diverse nature of the 
work performed by each element of the defense acquisition 
system. In addition to the mandatory areas under para-
graph (1), a performance assessment may consider, as ap-
propriate, specific areas of acquisition concern, such as— 
‘‘(A) the selection of contractors, including— 
‘‘(i) the extent of competition and the use 
of exceptions to competition requirements; 
‘‘(ii) compliance with Department of De-
fense policies regarding the participation of 
small business concerns and various categories 
of small business concerns, including the use of 
contract bundling and the availability of non- 
bundled contract vehicles; 
‘‘(iii) the quality of market research; 
‘‘(iv) the effective consideration of con-
tractor past performance; and 
‘‘(v) the number of bid protests, the extent 
to which such bid protests have been successful, 
and the reasons for such success; 
‘‘(B) the negotiation of contracts, including—
382 
‘‘(i) the appropriate application of section 
2306a of this title (relating to truth in negotia-
tions); 
‘‘(ii) the appropriate use of contract types 
appropriate to specific procurements; 
‘‘(iii) the appropriate use of performance 
requirements; 
‘‘(iv) the appropriate acquisition of tech-
nical data and other rights and assets necessary 
to support long-term sustainment and follow-on 
procurement; and 
‘‘(v) the timely definitization of any 
undefinitized contract actions; and 
‘‘(C) the management of contractor perform-
ance, including— 
‘‘(i) the assignment of appropriately quali-
fied contracting officer representatives and 
other contract management personnel; 
‘‘(ii) the extent of contract disputes, the 
reasons for such disputes, and the extent to 
which they have been successfully addressed; 
‘‘(iii) the appropriate consideration of long- 
term sustainment and energy efficiency objec-
tives; and
383 
‘‘(iv) the appropriate use of integrated 
testing. 
‘‘(c) CONTENTS OF GUIDANCE.—The guidance issued 
pursuant to subsection (a) shall ensure that each element 
of the defense acquisition system is subject to a perform-
ance assessment under this section not less often than 
once every four years, and shall address, at a minimum— 
‘‘(1) the designation of elements of the defense 
acquisition system that are subject to performance 
assessment at an organizational level that ensures 
such assessments can be performed in an efficient 
and integrated manner; 
‘‘(2) the frequency with which such perform-
ance assessments should be conducted; 
‘‘(3) goals, standards, tools, and metrics for use 
in conducting performance assessments; 
‘‘(4) the composition of the teams designated to 
perform performance assessments; 
‘‘(5) any phase-in requirements needed to en-
sure that qualified staff are available to perform per-
formance assessments; 
‘‘(6) procedures for tracking the implementa-
tion of recommendations made pursuant to perform-
ance assessments;
384 
‘‘(7) procedures for developing and dissemi-
nating lessons learned from performance assess-
ments; and 
‘‘(8) procedures for ensuring that information 
from performance assessments are retained elec-
tronically and are provided in a timely manner to 
the Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Director of the 
Office of Performance Assessment and Root Cause 
Analysis as needed to assist them in performing 
their responsibilities under this section. 
‘‘(d) PERFORMANCE GOALS UNDER GOVERNMENT 
PERFORMANCE RESULTS ACT OF 1993.—Beginning with 
fiscal year 2012, the annual performance plan prepared 
by the Department of Defense pursuant to section 1115 
of title 31 shall include appropriate performance goals for 
elements of the defense acquisition system. 
‘‘(e) REPORTING REQUIREMENTS.—Beginning with 
fiscal year 2012— 
‘‘(1) the annual report prepared by the Sec-
retary of Defense pursuant to section 1116 of title 
31, United States Code, shall address the Depart-
ment’s success in achieving performance goals estab-
lished pursuant to such section for elements of the 
defense acquisition system; and
385 
‘‘(2) the annual report prepared by the Director 
of the Office of Performance Assessment and Root 
Cause Analysis pursuant to section 103(f) of the 
Weapon Systems Acquisition Reform Act of 2009 
(10 U.S.C. 2430 note), shall include information on 
the activities undertaken by the Department pursu-
ant to such section, including a summary of signifi-
cant findings or recommendations arising out of per-
formance assessments.’’. 
(b) CLERICAL AMENDMENTS.—The table of chapters 
at the beginning of subtitle A of title 10, United States 
Code, and at the beginning of part IV of such subtitle, 
are each amended by inserting after the item relating to 
chapter 148 the following new item: 
‘‘149. Defense Acquisition System ............................................... 2545’’. 
SEC. 862. COMPTROLLER GENERAL REPORT ON JOINT CA-
PABILITIES 
INTEGRATION 
AND 
DEVELOP-
MENT SYSTEM. 
(a) REPORT REQUIRED.—The Comptroller General 
of the United States shall carry out a comprehensive re-
view of the Joint Capabilities Integration and Develop-
ment System (in this section referred to as ‘‘JCIDS’’). 
Not later than one year after the date of the enactment 
of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the review 
and include in such report any recommendations the
386 
Comptroller General considers necessary and advisable to 
improve or replace JCIDS. 
(b) CONTENT OF THE REVIEW.— 
(1) PURPOSE.—The purpose of the review re-
quired by subsection (a) is to evaluate the effective-
ness of JCIDS in achieving the following objectives: 
(A) Timeliness in delivering capability to 
the warfighter. 
(B) Efficient use of the investment re-
sources of the Department of Defense. 
(C) Control of requirements creep. 
(D) Responsiveness to changes occurring 
after the approval of a requirements document 
(including changes to the threat environment, 
the emergence of new capabilities, or changes in 
the resources estimated to procure or sustain a 
capability). 
(E) Development of the personnel skills, 
capacity, and training needed for an effective 
and efficient requirements process. 
(2) MATTERS CONSIDERED.—In performing the 
review, the Comptroller General shall gather infor-
mation on and consider the following matters: 
(A) The time that requirements documents 
take to receive approval through JCIDS.
387 
(B) The quality of cost information consid-
ered in JCIDS and the extent of its consider-
ation. 
(C) The extent to which JCIDS establishes 
a meaningful level of priority for requirements. 
(D) The extent to which JCIDS is consid-
ering trade-offs between cost, schedule, and per-
formance objectives. 
(E) 
The 
quality 
of 
information 
on 
sustainment considered in JCIDS and the ex-
tent to which sustainment information is con-
sidered. 
(F) An evaluation of the advantages and 
disadvantages of designating a commander of a 
unified combatant command for each require-
ments document for which the Joint Require-
ments Oversight Council is the validation au-
thority to provide a joint evaluation task force 
to participate in a materiel solution and to— 
(i) provide input to the analysis of al-
ternatives; 
(ii) participate in testing (including 
limited user tests and prototype testing); 
(iii) provide input on a concept of op-
erations and doctrine;
388 
(iv) provide end user feedback to the 
resource sponsor; and 
(v) participate, through the combatant 
commander concerned, in any alteration of 
the requirement for such solution. 
(c) DEFINITIONS.—In this section: 
(1) JOINT CAPABILITIES INTEGRATION AND DE-
VELOPMENT SYSTEM.—The term ‘‘Joint Capabilities 
Integration and Development System’’ means the 
system for the assessment, review, validation, and 
approval of joint warfighting requirements that is 
described in Chairman of the Joint Chiefs of Staff 
Instruction 3170.01G 
(2) REQUIREMENTS
DOCUMENT.—The term 
‘‘requirements document’’ means a document pro-
duced in JCIDS that is provided for an acquisition 
program to guide the subsequent development, pro-
duction, and testing of the program and that— 
(A) justifies the need for a materiel ap-
proach, or an approach that is a combination of 
materiel and non-materiel, to satisfy one or 
more specific capability gaps; 
(B) details the information necessary to 
develop an increment of militarily useful, 
logistically supportable, and technically mature
389 
capability, including key performance param-
eters; or 
(C) identifies production attributes re-
quired for a single increment of a program. 
(3) REQUIREMENTS
CREEP.—The term ‘‘re-
quirements creep’’ means the addition of new tech-
nical or operational specifications after a require-
ments document is approved. 
(4) MATERIEL SOLUTION.—The term ‘‘materiel 
solution’’ means the development, acquisition, pro-
curement, or fielding of a new item, or of a modi-
fication to an existing item, necessary to equip, oper-
ate, maintain, and support military activities. 
SEC. 863. REQUIREMENTS FOR THE ACQUISITION OF SERV-
ICES. 
(a) ESTABLISHMENT OF REQUIREMENTS PROCESSES 
FOR THE ACQUISITION OF SERVICES.—The Secretary of 
Defense shall ensure that the military departments and 
Defense Agencies each establish a process for identifying, 
assessing, reviewing, and validating requirements for the 
acquisition of services. 
(b) OPERATIONAL REQUIREMENTS.—With regard to 
requirements for the acquisition of services in support of 
combatant commands and military operations, the Sec-
retary shall ensure—
390 
(1) that the Chief of Staff of the Army, the 
Chief of Naval Operations, the Chief of Staff of the 
Air Force, and the Commandant of the Marine 
Corps implement and bear chief responsibility for 
carrying out, within the Armed Force concerned, the 
process established pursuant to subsection (a) for 
such Armed Force; and 
(2) that commanders of unified combatant com-
mands and other officers identified or designated as 
joint qualified officers have an opportunity to par-
ticipate in the process of each military department 
to provide input on joint requirements for the acqui-
sition of services. 
(c) SUPPORTING REQUIREMENTS.—With regard to 
requirements for the acquisition of services not covered by 
subsection (b), the Secretary shall ensure that the secre-
taries of the military departments and the heads of the 
Defense Agencies implement and bear chief responsibility 
for carrying out, within the military department or De-
fense Agency concerned, the process established pursuant 
to subsection (a) for such military department or Defense 
Agency. 
(d) IMPLEMENTATION PLANS REQUIRED.—The Sec-
retary shall ensure that an implementation plan is devel-
391 
oped for each process established pursuant to subsection 
(a) that addresses, at a minimum, the following: 
(1) The organization of such process. 
(2) The level of command responsibility re-
quired for identifying, assessing, reviewing, and vali-
dating requirements for the acquisition of services in 
accordance with the requirements of this section and 
the 
categories 
established 
under 
section 
2330(a)(1)(C) of title 10, United States Code. 
(3) The composition of positions necessary to 
operate such process. 
(4) The training required for personnel engaged 
in such process. 
(5) The relationship between doctrine and such 
process. 
(6) Methods of obtaining input on joint require-
ments for the acquisition of services. 
(7) Procedures for coordinating with the acqui-
sition process. 
(8) Considerations relating to opportunities for 
strategic sourcing. 
(e) MATTERS
REQUIRED
IN
IMPLEMENTATION 
PLAN.—Each plan required under subsection (d) shall 
provide for initial implementation of a process for identi-
fying, assessing, reviewing, and validating requirements
392 
for the acquisition of services not later than one year after 
the date of the enactment of this Act and shall provide 
for full implementation of such process at the earliest date 
practicable. 
(f) CONSISTENCY WITH JOINT GUIDANCE.—When-
ever, at any time, guidance is issued by the Chairman of 
the Joint Chiefs of Staff relating to requirements for the 
acquisition of services in support of combatant commands 
and military operations, each process established pursuant 
to subsection (a) shall be revised in accordance with such 
joint guidance. 
(g) DEFINITION.—The term ‘‘requirements for the 
acquisition of services’’ means objectives to be achieved 
through acquisitions primarily involving the procurement 
of services. 
(h) REVIEW
OF SUPPORTING REQUIREMENTS TO 
IDENTIFY SAVINGS.—The secretaries of the military de-
partments and the heads of the Defense Agencies shall 
review and validate each requirement described in sub-
section (c) with an anticipated cost in excess of 
$10,000,000 with the objective of identifying unneeded or 
low priority requirements that can be reduced or elimi-
nated, with the savings transferred to higher priority ob-
jectives. Savings identified and transferred to higher pri-
ority objectives through review and revalidation under this
393 
subsection shall count toward the savings objectives estab-
lished in the June 4, 2010, guidance of the Secretary of 
Defense on improved operational efficiencies and the an-
nual reduction in funding for service support contractors 
required by the August 16, 2010, guidance of the Sec-
retary of Defense on efficiency initiatives. As provided by 
the Secretary, cost avoidance shall not count toward these 
objectives. 
(i) EXTENSION OF AUTHORITY.—Subsection (e) of 
section 834 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is 
amended by striking ‘‘September 30, 2010’’ and inserting 
‘‘December 31, 2011’’. 
SEC. 864. REVIEW OF DEFENSE ACQUISITION GUIDANCE. 
(a) REVIEW OF GUIDANCE.—The Secretary of De-
fense shall review the acquisition guidance of the Depart-
ment of Defense, including, at a minimum, the guidance 
contained in Department of Defense Instruction 5000.02 
entitled ‘‘Operation of the Defense Acquisition System’’. 
(b) MATTERS CONSIDERED.—The review performed 
under subsection (a) shall consider— 
(1) the extent to which the acquisition of com-
mercial goods and commodities, commercial and 
military unique services, and information technology 
should be addressed in Department of Defense In-
394 
struction 5000.02 and other guidance primarily re-
lating to the acquisition of weapon systems, or 
should be addressed in separate instructions and 
guidance; 
(2) whether long-term sustainment and energy 
efficiency of weapon systems is appropriately empha-
sized; 
(3) whether appropriate mechanisms exist to 
communicate information relating to the mission 
needs of the Department of Defense to the industrial 
base in a way that allows the industrial base to 
make appropriate investments in infrastructure, ca-
pacity, and technology development to help meet 
such needs; 
(4) the extent to which earned value manage-
ment should be required on acquisitions not involv-
ing the acquisition of weapon systems and whether 
measures of quality and technical performance 
should be included in any earned value management 
system; and 
(5) such other matters as the Secretary con-
siders appropriate. 
(c) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the
395 
Senate and the House of Representatives a report detail-
ing any changes in the acquisition guidance of the Depart-
ment of Defense identified during the review required by 
subsection (a), and any actions taken, or planned to be 
taken, to implement such changes. 
SEC. 865. REQUIREMENT TO REVIEW REFERENCES TO 
SERVICES ACQUISITION THROUGHOUT THE 
FEDERAL ACQUISITION REGULATION AND 
THE DEFENSE FEDERAL ACQUISITION REGU-
LATION SUPPLEMENT. 
(a) REVIEW REQUIRED.—The Secretary of Defense, 
in consultation with the Administrator for Federal Pro-
curement Policy and the heads of such other Federal agen-
cies as the Secretary considers appropriate, shall review 
the Federal Acquisition Regulation and the Defense Fed-
eral Acquisition Regulation Supplement to ensure that 
such regulations include appropriate guidance for and ref-
erences to services acquisition that are in addition to ref-
erences provided in part 37 and the Defense Supplement 
to part 37. 
(b) MATTERS CONSIDERED.—The review required by 
subsection (a) shall consider the extent to which additional 
guidance is needed— 
(1) to provide the tools and processes needed to 
assist contracting officials in addressing the full
396 
range of complexities that can arise in the acquisi-
tion of services; and 
(2) to enhance and support the procurement 
and project management community in all aspects of 
the process for the acquisition of services, including 
requirements development, assessment of reasonable-
ness, and post-award management and oversight. 
(c) REPORT.—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 con-
taining— 
(1) a summary of the findings of the review re-
quired by subsection (a); and 
(2) any recommendations that the Secretary 
may have for changes to the Federal Acquisition 
Regulation and the Defense Federal Acquisition 
Regulation Supplement to address such findings, in-
cluding identifying any changes that are necessary 
to improve part 37 (which specifically addresses 
services acquisitions). 
SEC. 866. PILOT PROGRAM ON ACQUISITION OF MILITARY 
PURPOSE NONDEVELOPMENTAL ITEMS. 
(a) PILOT PROGRAM AUTHORIZED.—
397 
(1) IN
GENERAL.—The Secretary of Defense 
may carry out a pilot program to assess the 
feasability and advisability of acquiring military pur-
pose nondevelopmental items in accordance with this 
section. 
(2) SCOPE OF PROGRAM.—Under the pilot pro-
gram, the Secretary may enter into contracts with 
nontraditional defense contractors for the acquisition 
of military purpose nondevelopmental items in ac-
cordance with the requirements set forth in sub-
section (b). 
(b) CONTRACT REQUIREMENTS.—Each contract en-
tered into under the pilot program— 
(1) shall be a firm, fixed price contract, or a 
firm, fixed price contract with an economic price ad-
justment clause awarded using competitive proce-
dures in accordance with chapter 137 of title 10, 
United States Code; 
(2) shall be in an amount not in excess of 
$50,000,000, including all options; 
(3) shall provide— 
(A) for the delivery of an initial lot of pro-
duction quantities of completed items not later 
than nine months after the date of the award 
of such contract; and
398 
(B) that failure to make delivery as pro-
vided for under subparagraph (A) may result in 
the termination of such contract for default; 
and 
(4) shall be— 
(A) exempt from the requirement to sub-
mit certified cost or pricing data under section 
2306a of title 10, United States Code, and the 
cost accounting standards under section 26 of 
the Office of Federal Procurement Policy Act 
(41 U.S.C. 422); and 
(B) subject to the requirement to provide 
data other than certified cost or pricing data 
for the purpose of price reasonableness deter-
minations, as provided in section 2306a(d) of 
title 10, United States Code. 
(c) REGULATIONS.—If the Secretary establishes the 
pilot program authorized under subsection (a), the Sec-
retary shall prescribe regulations governing such pilot pro-
gram. Such regulations shall be included in regulations of 
the Department of Defense prescribed as part of the Fed-
eral Acquisition Regulation and shall include the contract 
clauses and procedures necessary to implement such pro-
gram. 
(d) REPORTS.—
399 
(1) REPORTS ON PROGRAM ACTIVITIES.—Not 
later than 60 days after the end of any fiscal year 
in which the pilot program is in effect, the Secretary 
shall submit to the congressional defense committees 
a report on the pilot program. The report shall be 
in unclassified form but may include a classified 
annex. Each report shall include, for each contract 
entered into under the pilot program in the pre-
ceding fiscal year, the following: 
(A) The contractor. 
(B) The item or items to be acquired. 
(C) The military purpose to be served by 
such item or items. 
(D) The amount of the contract. 
(E) The actions taken by the Department 
of Defense to ensure that the price paid for 
such item or items is fair and reasonable. 
(2) PROGRAM ASSESSMENT.—If the Secretary 
establishes the pilot program authorized under sub-
section (a), not later than four years after the date 
of the enactment of this Act, the Comptroller Gen-
eral of the United States shall submit to the con-
gressional defense committees a report setting forth 
the assessment of the Comptroller General of the ex-
tent to which the pilot program—
400 
(A) enabled the Department to acquire 
items that otherwise might not have been avail-
able to the Department; 
(B) assisted the Department in the rapid 
acquisition and fielding of capabilities needed to 
meet urgent operational needs; and 
(C) protected the interests of the United 
States in paying fair and reasonable prices for 
the item or items acquired. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘military purpose nondevelop-
mental item’’ means a nondevelopmental item that 
meets a validated military requirement, as deter-
mined in writing by the responsible program man-
ager, and has been developed exclusively at private 
expense. For purposes of this paragraph, an item 
shall not be considered to be developed exclusively at 
private expense if development of the item was paid 
for in whole or in part through— 
(A) independent research and development 
costs or bid and proposal costs that have been 
reimbursed directly or indirectly by a Federal 
agency or have been submitted to a Federal 
agency for reimbursement; or 
(B) foreign government funding.
401 
(2) The term ‘‘nondevelopmental item’’— 
(A) has the meaning given that term in 
section 4(13) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(13)); and 
(B) also includes previously developed 
items of supply that require modifications other 
than those customarily available in the commer-
cial marketplace if such modifications are con-
sistent with the requirement in subsection 
(b)(3)(A). 
(3) The term ‘‘nontraditional defense con-
tractor’’ has the meaning given that term in section 
2302(9) of title 10, United States Code (as added 
by subsection (g)). 
(4) The terms ‘‘independent research and devel-
opments costs’’ and ‘‘bid and proposal costs’’ have 
the meaning given such terms in section 31.205-18 
of the Federal Acquisition Regulation. 
(f) SUNSET.— 
(1) IN GENERAL.—The authority to carry out 
the pilot program shall expire on the date that is 
five years after the date of the enactment of this 
Act. 
(2) CONTINUATION OF CURRENT CONTRACTS.— 
The expiration under paragraph (1) of the authority
402 
to carry out the pilot program shall not affect the 
validity of any contract awarded under the pilot pro-
gram before the date of the expiration of the pilot 
program under that paragraph. 
(g) STATUTORY DEFINITION OF NONTRADITIONAL 
DEFENSE CONTRACTOR.— 
(1) 
NONTRADITIONAL
DEFENSE
CON-
TRACTOR.—Section 2302 of title 10, United States 
Code, is amended by adding at the end the fol-
lowing: 
‘‘(9) The term ‘nontraditional defense con-
tractor’, with respect to a procurement or with re-
spect to a transaction authorized under section 
2371(a) of this title, means an entity that is not 
currently performing and has not performed, for at 
least the one-year period preceding the solicitation of 
sources by the Department of Defense for the pro-
curement or transaction, any of the following for the 
Department of Defense: 
‘‘(A) Any contract or subcontract that is 
subject to full coverage under the cost account-
ing standards prescribed pursuant to section 26 
of the Office of Federal Procurement Policy Act 
(41 U.S.C. 422) and the regulations imple-
menting such section.
403 
‘‘(B) Any other contract in excess of 
$500,000 under which the contractor is re-
quired to submit certified cost or pricing data 
under section 2306a of this title.’’. 
(2) CONFORMING AMENDMENT.—Section 845(f) 
of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended to 
read as follows: 
‘‘(f) NONTRADITIONAL DEFENSE CONTRACTOR DE-
FINED.—In this section, the term ‘nontraditional defense 
contractor’ has the meaning provided by section 2302(9) 
of title 10, United States Code.’’. 
PART II—DEFENSE ACQUISITION WORKFORCE 
SEC. 871. ACQUISITION WORKFORCE EXCELLENCE. 
(a) ACQUISITION WORKFORCE EXCELLENCE.—Sub-
chapter I of chapter 87 of title 10, United States Code, 
is amended by inserting after section 1701 the following 
new section: 
‘‘§ 1701a. Management for acquisition workforce ex-
cellence 
‘‘(a) PURPOSE.—The purpose of this chapter is to re-
quire the Department of Defense to develop and manage 
a highly skilled professional acquisition workforce— 
‘‘(1) in which excellence and contribution to 
mission is rewarded;
411 
‘‘(K) The adequacy of the training, policy 
guidelines, and other preparations afforded in con-
nection with using the project. 
‘‘(L) Whether there is a process for ensuring 
employee involvement in the development and im-
provement of the project. 
‘‘(3) The first assessment under this subsection shall 
be completed not later than September 30, 2012. The sec-
ond and final assessment shall be completed not later than 
September 30, 2016. The Secretary shall submit to the 
covered congressional committees a copy of each assess-
ment within 30 days after receipt by the Secretary of the 
assessment. 
‘‘(f) COVERED CONGRESSIONAL COMMITTEES.—In 
this section, the term ‘covered congressional committees’ 
means— 
‘‘(1) the Committees on Armed Services of the 
Senate and the House of Representatives; 
‘‘(2) the Committee on Homeland Security and 
Governmental Affairs of the Senate; and 
‘‘(3) the Committee on Oversight and Govern-
ment Reform of the House of Representatives. 
‘‘(g) TERMINATION OF AUTHORITY.—The authority 
to conduct a demonstration program under this section 
shall terminate on September 30, 2017.
671 
(1) The number of Iraqis who were or are em-
ployed by the United States Government in Iraq or 
who are or were employed in Iraq by an organization 
or entity closely associated with the United States 
mission in Iraq that has received United States Gov-
ernment funding through an official and documented 
contract, award, grant, or cooperative agreement. 
(2) The number of Iraqis who have applied— 
(A) for resettlement in the United States 
as a refugee under section 1243 of the Refugee 
Crisis in Iraq Act of 2007 (subtitle C of title 
XII of division A of Public Law 110–181; 122 
Stat. 395 et seq.); 
(B) to enter the United States as a special 
immigrant under section 1244 of such Act; or 
(C) to enter the United States as a special 
immigrant under section 1059 of the National 
Defense Authorization Act for Fiscal Year 2006 
(Public Law 109–163; 8 U.S.C. 1101 note). 
(3) The status of each application described in 
paragraph (2). 
(4) The estimated number of individuals de-
scribed in paragraph (1) who have been injured or 
killed in Iraq.
725 
SEC. 1510. OPERATION AND MAINTENANCE. 
Funds are hereby authorized to be appropriated for 
fiscal year 2011 for the use of the Armed Forces for ex-
penses, not otherwise provided for, for operation and 
maintenance, in amounts as follows: 
(1) For the Army, $63,202,618,000. 
(2) For the Navy, $8,692,173,000. 
(3) For the Marine Corps, $4,136,522,000. 
(4) For the Air Force, $13,487,283,000 
(5) 
For 
Defense-wide 
activities, 
$9,436,358,000. 
(6) For the Army Reserve, $286,950,000. 
(7) For the Navy Reserve, $93,559,000. 
(8) 
For 
the 
Marine 
Corps 
Reserve, 
$29,685,000. 
(9) For the Air Force Reserve, $129,607,000. 
(10) 
For 
the 
Army 
National 
Guard, 
$544,349,000. 
(11) 
For 
the 
Air 
National 
Guard, 
$350,823,000. 
(12) For the Afghanistan Security Forces 
Fund, $11,619,283,000. 
(13) For the Iraq Security Forces Fund, 
$1,500,000,000. 
(14) For the Overseas Contingency Operations 
Transfer Fund, $506,781,000.