H. R. 2810—203 
awarded a contract pursuant to subsection (a) to provide order 
information as determined by the Administrator during 
implementation phase II, as described in subsection (c)(2). 
(f) RELATIONSHIP TO OTHER PROVISIONS OF LAW.— 
(1) All laws, including laws that set forth policies, proce-
dures, requirements, or restrictions for the procurement of prop-
erty or services by the Federal Government, apply to the pro-
gram established pursuant to subsection (a) unless otherwise 
provided in this section. 
(2) A procurement of a product made through a commercial 
e-commerce portal under the program established pursuant 
to subsection (a) is deemed to be an award of a prime contract 
for purposes of the goals established under section 15(g) of 
the Small Business Act (15 U.S.C. 644(g)), if the purchase 
is from a supplier that is a small business concern. 
(3) Nothing in this section shall be construed as limiting 
the authority of a department or agency to restrict competition 
to small business concerns. 
(4) Nothing in this section shall be construed as limiting 
the applicability of section 1341 of title 31, United States Code 
(popularly referred to as the Anti-Deficiency Act). 
(g) USE OF COMMERCIAL PRACTICES AND STANDARD TERMS AND 
CONDITIONS.—A procurement of a product through a commercial 
e-commerce portal used under the program established pursuant 
to subsection (a) shall be made, to the maximum extent practicable, 
under the standard terms and conditions of the portal relating 
to purchasing on the portal. 
(h) DISCLOSURE, PROTECTION, AND USE OF INFORMATION.—In 
any contract awarded to a commercial e-commerce portal provider 
pursuant to subsection (a), the Administrator shall require that 
the provider— 
(1) agree not to sell or otherwise make available to any 
third party any information pertaining to a product ordered 
by the Federal Government through the commercial e-commerce 
portal in a manner that identifies the Federal Government, 
or any of its departments or agencies, as the purchaser, except 
if the information is needed to process or deliver an order 
or the Administrator provides written consent; 
(2) agree to take the necessary precautions to safeguard 
any information pertaining to the Federal Government, espe-
cially precautions necessary to protect against national security 
or cybersecurity threats; and 
(3) agree not to use, for pricing, marketing, competitive, 
or other purposes, any information related to a product from 
a third-party supplier featured on the commercial e-commerce 
portal or the transaction of such a product, except as necessary 
to comply with the requirements of the program established 
pursuant to subsection (a). 
(i) 
SIMPLIFIED
ACQUISITION
THRESHOLD.—A 
procurement 
through a commercial e-commerce portal used under the program 
established pursuant to subsection (a) shall not exceed the sim-
plified acquisition threshold in section 134 of title 41, United States 
Code. 
(j) COMPTROLLER GENERAL ASSESSMENTS.— 
(1) ASSESSMENT OF IMPLEMENTATION PLAN.—Not later than 
90 days after the Director of the Office of Management and
H. R. 2810—204 
Budget submits the implementation plan described in sub-
section (c)(1) to the appropriate congressional committees, the 
Comptroller General of the United States shall submit to the 
appropriate congressional committees an assessment of the 
plan, including any other matters the Comptroller General 
considers relevant to the plan. 
(2) ASSESSMENT OF PROGRAM IMPLEMENTATION.—Not later 
than three years after the first contract with a commercial 
e-commerce portal provider is awarded pursuant to subsection 
(a), the Comptroller General of the United States shall submit 
to the appropriate congressional committees a report on the 
challenges and benefits the General Services Administration 
and participating departments and agencies observe regarding 
implementation of the program established pursuant to sub-
section (a). The report shall include the following elements: 
(A) A description of the acquisition of the commercial 
e-commerce portals (including the extent to which the por-
tals had to be configured or otherwise modified to meet 
the needs of the program) costs, and the implementation 
schedule. 
(B) A description of participation by suppliers, with 
particular attention to those described under subsection 
(e), that have registered or that have sold goods with 
at least one commercial e-commerce portal provider, 
including numbers, categories, and trends. 
(C) The effect, if any, of the program on the ability 
of agencies to meet goals established for suppliers and 
products described under subsection (e), including goals 
established under section 15(g) of the Small Business Act 
(15 U.S.C. 644(g)). 
(D) A discussion of the limitations, if any, to participa-
tion by suppliers in the program. 
(E) Any other matters the Comptroller General con-
siders relevant to report. 
(k) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 
Administrator of General Services. 
(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘‘appropriate congressional committees’’ means the following: 
(A) The Committees on Armed Services of the Senate 
and House of Representatives. 
(B) The Committee on Homeland Security and Govern-
mental Affairs of the Senate and the Committee on Over-
sight and Government Reform of the House of Representa-
tives. 
(C) 
The 
Committee 
on 
Small 
Business 
and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives. 
(3) COMMERCIAL E-COMMERCE PORTAL.—The term ‘‘commer-
cial e-commerce portal’’ means a commercial solution providing 
for the purchase of commercial products aggregated, distrib-
uted, sold, or manufactured via an online portal. The term 
does not include an online portal managed by the Government 
for, or predominantly for use by, Government agencies. 
(4) COMMERCIAL PRODUCT.—The term ‘‘commercial product’’ 
means a commercially available off-the-shelf item, as defined
H. R. 2810—205 
in section 104 of title 41, United States Code, except the term 
does not include services. 
(5) SMALL BUSINESS CONCERN.—The term ‘‘small business 
concern’’ has the meaning given such term under section 3 
of the Small Business Act (15 U.S.C. 632). 
SEC. 847. REVISION TO DEFINITION OF COMMERCIAL ITEM. 
(a) IN GENERAL.—Section 103(8) of title 41, United States Code, 
is amended by inserting before the period at the end the following: 
‘‘or to multiple foreign governments’’. 
(b) EFFECT ON SECTION 2464 OF TITLE 10.—Nothing in the 
amendment made by subsection (a) shall affect the meaning of 
the term ‘‘commercial item’’ for purposes of subsection (a)(5) of 
section 2464 of title 10, United States Code, or any requirement 
under subsection (a)(3) or subsection (c) of such section. 
SEC. 848. COMMERCIAL ITEM DETERMINATIONS. 
Section 2380 of title 10, United States Code, is amended— 
(1) by striking ‘‘The Secretary’’ and inserting ‘‘(a) IN GEN-
ERAL.—The Secretary’’; and 
(2) by adding at the end the following new subsection: 
‘‘(b) ITEMS PREVIOUSLY ACQUIRED USING COMMERCIAL ITEM 
ACQUISITION PROCEDURES.— 
‘‘(1) DETERMINATIONS.—A contract for an item acquired 
using commercial item acquisition procedures under part 12 
of the Federal Acquisition Regulation shall serve as a prior 
commercial item determination with respect to such item for 
purposes of this chapter unless the senior procurement execu-
tive of the military department or the Department of Defense 
as designated for purposes of section 1702(c) of title 41 deter-
mines in writing that it is no longer appropriate to acquire 
the item using commercial item acquisition procedures. 
‘‘(2) LIMITATION.—(A) Except as provided under subpara-
graph (B), funds appropriated or otherwise made available to 
the Department of Defense may not be used for the procurement 
under part 15 of the Federal Acquisition Regulation of an 
item that was previously acquired under a contract using 
commercial item acquisition procedures under part 12 of the 
Federal Acquisition Regulation. 
‘‘(B) The limitation under subparagraph (A) does not apply 
to the procurement of an item that was previously acquired 
using commercial item acquisition procedures under part 12 
of the Federal Acquisition Regulation following— 
‘‘(i) a written determination by the head of contracting 
activity pursuant to section 2306a(b)(4)(B) of this title that 
the use of such procedures was improper; or 
‘‘(ii) a written determination by the senior procurement 
executive of the military department or the Department 
of Defense as designated for purposes of section 1702(c) 
of title 41 that it is no longer appropriate to acquire the 
item using such procedures.’’. 
SEC. 849. REVIEW OF REGULATIONS ON COMMERCIAL ITEMS. 
(a) REVIEW OF DETERMINATIONS NOT TO EXEMPT DEPARTMENT 
OF DEFENSE CONTRACTS
FOR COMMERCIAL ITEMS
AND COMMER-
CIALLY AVAILABLE OFF-THE-SHELF ITEMS FROM CERTAIN LAWS AND 
REGULATIONS.—Not later than one year after the date of the enact-
ment of this Act, the Secretary of Defense shall—
H. R. 2810—206 
(1) review each determination of the Federal Acquisition 
Regulatory Council pursuant to section 1906(b)(2), section 
1906(c)(3), or section 1907(a)(2) of title 41, United States Code, 
not to exempt contracts and subcontracts described in sub-
section (a) of section 2375 of title 10, United States Code, 
from laws such contracts and subcontracts would otherwise 
be exempt from under section 1906(d) of title 41, United States 
Code; and 
(2) propose revisions to the Department of Defense Supple-
ment to the Federal Acquisition Regulation to provide an 
exemption from each law subject to such determination unless 
the Secretary determines there is a specific reason not to pro-
vide the exemption. 
(b) REVIEW
OF CERTAIN CONTRACT CLAUSE REQUIREMENTS 
APPLICABLE TO COMMERCIAL ITEM CONTRACTS.—Not later than one 
year after the date of the enactment of this Act, the Secretary 
of Defense shall— 
(1) review the Department of Defense Supplement to the 
Federal Acquisition Regulation to assess all regulations that 
require a specific contract clause for a contract using commer-
cial item acquisition procedures under part 12 of the Federal 
Acquisition Regulation, except for regulations required by law 
or Executive order; and 
(2) propose revisions to the Department of Defense Supple-
ment to the Federal Acquisition Regulation to eliminate regula-
tions reviewed under paragraph (1) unless the Secretary deter-
mines on a case-by-case basis that there is a specific reason 
not to eliminate the regulation. 
(c) ELIMINATION OF CERTAIN CONTRACT CLAUSE REGULATIONS 
APPLICABLE
TO COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM 
SUBCONTRACTS.—Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall— 
(1) review the Department of Defense Supplement to the 
Federal Acquisition Regulation to assess all regulations that 
require a prime contractor to include a specific contract clause 
in a subcontract for commercially available off-the-shelf items 
unless the inclusion of such clause is required by law or Execu-
tive order; and 
(2) propose revisions to the Department of Defense Supple-
ment to the Federal Acquisition Regulation to eliminate regula-
tions reviewed under paragraph (1) unless the Secretary deter-
mines on a case-by-case basis that there is a specific reason 
not to eliminate the regulation. 
SEC. 850. TRAINING IN COMMERCIAL ITEMS PROCUREMENT. 
(a) TRAINING.—Not later than one year after the date of the 
enactment of this Act, the President of the Defense Acquisition 
University shall establish a comprehensive training program on 
part 12 of the Federal Acquisition Regulation. The training shall 
cover, at a minimum, the following topics: 
(1) The origin of part 12 and the congressional mandate 
to prefer commercial procurements. 
(2) The definition of a commercial item, with a particular 
focus on the ‘‘of a type’’ concept. 
(3) Price analysis and negotiations. 
(4) Market research and analysis. 
(5) Independent cost estimates.
H. R. 2810—207 
(6) Parametric estimating methods. 
(7) Value analysis. 
(8) Best practices in pricing from commercial sector 
organizations, foreign government organizations, and other Fed-
eral, State, and local public sectors organizations. 
(9) Other topics on commercial procurements necessary 
to ensure a well-educated acquisition workforce. 
(b) ENROLLMENTS
GOALS.—The President of the Defense 
Acquisition University shall set goals for student enrollment for 
the comprehensive training program established under subsection 
(a). 
(c) SUPPORTING ACTIVITIES.—The Secretary of Defense shall, 
in support of the achievement of the goals of this section— 
(1) engage academic experts on research topics of interest 
to improve commercial item identification and pricing meth-
odologies; and 
(2) facilitate exchange and interface opportunities between 
government personnel to increase awareness of best practices 
and challenges in commercial item identification and pricing. 
(d) FUNDING.—The Secretary of Defense shall use amounts 
available in the Department of Defense Acquisition Workforce 
Development Fund established under section 1705 of title 10, United 
States Code, to fund the comprehensive training program estab-
lished under subsection (a). 
Subtitle F—Provisions Relating to Services 
Contracting 
SEC. 851. IMPROVEMENT OF PLANNING FOR ACQUISITION OF SERV-
ICES. 
(a) IN GENERAL.— 
(1) IMPROVEMENT OF PLANNING FOR ACQUISITION OF SERV-
ICES.—Chapter 137 of title 10, United States Code, is amended 
by inserting after section 2328 the following new section: 
‘‘§ 2329. Procurement of services: data analysis and require-
ments validation 
‘‘(a) IN GENERAL.—The Secretary of Defense shall ensure that— 
‘‘(1) appropriate and sufficiently detailed data are collected 
and analyzed to support the validation of requirements for 
services contracts and inform the planning, programming, budg-
eting, and execution process of the Department of Defense; 
‘‘(2) requirements for services contracts are evaluated 
appropriately and in a timely manner to inform decisions 
regarding the procurement of services; and 
‘‘(3) decisions regarding the procurement of services con-
sider available resources and total force management policies 
and procedures. 
‘‘(b) SPECIFICATION OF AMOUNTS REQUESTED IN BUDGET.—Effec-
tive October 1, 2022, the Secretary of Defense shall annually submit 
to Congress information on services contracts that clearly and sepa-
rately identifies the amount requested for each category of services 
to be procured for each Defense Agency, Department of Defense 
Field Activity, command, or military installation. Such information 
shall—
H. R. 2810—208 
‘‘(1) be submitted at or about the time of the budget submis-
sion by the President under section 1105(a) of title 31; 
‘‘(2) cover the fiscal year covered by such budget submission 
by the President; 
‘‘(3) be consistent with total amounts of estimated expendi-
tures and proposed appropriations necessary to support the 
programs, projects, and activities of the Department of Defense 
included in such budget submission by the President for that 
fiscal year; and 
‘‘(4) be organized using a common enterprise data structure 
developed under section 2222 of this title. 
‘‘(c) DATA ANALYSIS.—(1) Each Secretary of a military depart-
ment shall regularly analyze past spending patterns and anticipated 
future requirements with respect to the procurement of services 
within such military department. 
‘‘(2)(A) The Secretary of Defense shall regularly analyze past 
spending patterns and anticipated future requirements with respect 
to the procurement of services— 
‘‘(i) within each Defense Agency and Department of Defense 
Field Activity; and 
‘‘(ii) across military departments, Defense Agencies, and 
Department of Defense Field Activities. 
‘‘(B) The Secretaries of the military departments shall make 
data on services contracts available to the Secretary of Defense 
for purposes of conducting the analysis required under subpara-
graph (A). 
‘‘(3) The analyses conducted under this subsection shall— 
‘‘(A) identify contracts for similar services that are procured 
for three or more consecutive years at each Defense Agency, 
Department of Defense Field Activity, command, or military 
installation; 
‘‘(B) evaluate patterns in the procurement of services, to 
the extent practicable, at each Defense Agency, Department 
of Defense Field Activity, command, or military installation 
and by category of services procured; 
‘‘(C) be used to validate requirements for services contracts 
entered into after the date of the enactment of this subsection; 
and 
‘‘(D) be used to inform decisions on the award of and 
funding for such services contracts. 
‘‘(d) REQUIREMENTS EVALUATION.—Each Services Requirements 
Review Board shall evaluate each requirement for a services con-
tract, taking into consideration total force management policies 
and procedures, available resources, the analyses conducted under 
subsection (c), and contracting efficacy and efficiency. An evaluation 
of a services contract for compliance with contracting policies and 
procedures may not be considered to be an evaluation of a require-
ment for such services contract. 
‘‘(e) TIMELY PLANNING TO AVOID BRIDGE CONTRACTS.—(1) Effec-
tive October 1, 2018, the Secretary of Defense shall ensure that 
a requirements owner shall, to the extent practicable, plan appro-
priately before the date of need of a service at a Defense Agency, 
Department of Defense Field Activity, command, or military 
installation to avoid the use of a bridge contract to provide for 
continuation of a service to be performed through a services con-
tract. Such planning shall include allowing time for a requirement
H. R. 2810—209 
to be validated, a services contract to be entered into, and funding 
for the services contract to be secured. 
‘‘(2)(A) Upon the first use, due to inadequate planning (as 
determined by the Secretary of Defense), of a bridge contract to 
provide for continuation of a service to be performed through a 
services contract, the requirements owner, along with the con-
tracting officer or a designee of the contracting officer for the 
contract, shall— 
‘‘(i) for a services contract in an amount less than 
$10,000,000, provide an update on the status of the bridge 
contract (including the rationale for using the bridge contract) 
to the commander or the senior civilian official of the Defense 
Agency concerned, Department of Defense Field Activity con-
cerned, command concerned, or military installation concerned, 
as applicable; or 
‘‘(ii) for a services contract in an amount equal to or greater 
than $10,000,000, provide an update on the status of the bridge 
contract (including the rationale for using the bridge contract) 
to the service acquisition executive for the military department 
concerned, the head of the Defense Agency concerned, the 
combatant commander concerned, or the Under Secretary of 
Defense for Acquisition and Sustainment, as applicable. 
‘‘(B) Upon the second use, due to inadequate planning (as 
determined by the Secretary of Defense), of a bridge contract to 
provide for continuation of a service to be performed through a 
services contract in an amount less than $10,000,000, the com-
mander or senior civilian official referred to in subparagraph (A)(i) 
shall provide notification of such second use to the Vice Chief 
of Staff of the armed force concerned and the service acquisition 
executive of the military department concerned, the head of the 
Defense Agency concerned, the combatant commander concerned, 
or the Under Secretary of Defense for Acquisition and Sustainment, 
as applicable. 
‘‘(f) EXCEPTION.—Except with respect to the analyses required 
under subsection (c), this section shall not apply to— 
‘‘(1) services contracts in support of contingency operations, 
humanitarian assistance, or disaster relief; 
‘‘(2) services contracts in support of a national security 
emergency declared with respect to a named operation; or 
‘‘(3) services contracts entered into pursuant to an inter-
national agreement. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘bridge contact’ means— 
‘‘(A) an extension to an existing contract beyond the 
period of performance to avoid a lapse in service caused 
by a delay in awarding a subsequent contract; or 
‘‘(B) a new short-term contract awarded on a sole- 
source basis to avoid a lapse in service caused by a delay 
in awarding a subsequent contract. 
‘‘(2) The term ‘requirements owner’ means a member of 
the armed forces (other than the Coast Guard) or a civilian 
employee of the Department of Defense responsible for a 
requirement for a service to be performed through a services 
contract. 
‘‘(3) The term ‘Services Requirements Review Board’ has 
the meaning given in Department of Defense Instruction
H. R. 2810—210 
5000.74, titled ‘Defense Acquisition of Services’ and dated 
January 5, 2016, or a successor instruction.’’ 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2328 the following new item: 
‘‘2329. Procurement of services: data analysis and requirements validation.’’. 
SEC. 852. STANDARD GUIDELINES FOR EVALUATION OF REQUIRE-
MENTS FOR SERVICES CONTRACTS. 
(a) IN GENERAL.—The Secretary of Defense shall encourage 
the use of standard guidelines within the Department of Defense 
for the evaluation of requirements for services contracts. Such 
guidelines shall be available to the Services Requirements Review 
Boards (established under Department of Defense Instruction 
5000.74, titled ‘‘Defense Acquisition of Services’’ and dated January 
5, 2016, or a successor instruction) within each Defense Agency, 
each Department of Defense Field Activity, and each military 
department for the purpose of standardizing the requirements 
evaluation required under section 2329 of title 10, United States 
Code, as added by this Act. 
(b) DEFINITIONS.—In this section— 
(1) the terms ‘‘Defense Agency’’, ‘‘Department of Defense 
Field Activity’’, and ‘‘military department’’ have the meanings 
given those terms in section 101 of title 10, United States 
Code; and 
(2) the term ‘‘total force management policies and proce-
dures’’ means the policies and procedures established under 
section 129a of such title. 
SEC. 853. REPORT ON OUTCOME-BASED SERVICES CONTRACTS. 
Not later than April 1, 2018, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a report on the merits of using outcome- 
based services contracts within the Department of Defense. Such 
report shall include a comparison of the use of outcome-based 
services contracts by the Department of Defense compared to input- 
based services contracts, the limitations of outcome-based services 
contracts, and an analysis of the cost implications of both 
approaches. 
SEC. 854. PILOT PROGRAM FOR LONGER TERM MULTIYEAR SERVICE 
CONTRACTS. 
(a) ESTABLISHMENT.—The Secretary of Defense shall carry out 
a pilot program under which the Secretary may use the authority 
under subsection (a) of section 2306c of title 10, United States 
Code, to enter into up to five contracts for periods of not more 
than 10 years for services described in subsection (b) of such section. 
Each contract entered into pursuant to this subsection may be 
extended for up to five additional one-year terms. 
(b) STUDY.— 
(1) IN GENERAL.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
enter into an agreement with an independent organization 
with relevant expertise to study best practices and lessons 
learned from using services contracts for periods longer than 
five years by commercial companies, foreign governments, and 
State governments, as well as service contracts for periods
H. R. 2810—211 
longer than five years used by the Federal Government, such 
as energy savings performance contracts (as defined in section 
to section 804(3) of the National Energy Conservation Policy 
Act (42 U.S.C. 8287c(3)). 
(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 study 
conducted under paragraph (1). 
(c) COMPTROLLER GENERAL REPORT.—Not later than five years 
after the date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the congressional defense 
committees a report on the pilot program carried out under this 
section. 
Subtitle G—Provisions Relating to Other 
Transaction Authority and Prototyping 
SEC. 861. CONTRACT AUTHORITY FOR ADVANCED DEVELOPMENT OF 
INITIAL OR ADDITIONAL PROTOTYPE UNITS. 
(a) PERMANENT AUTHORITY.— 
(1) IN GENERAL.—Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2302d the following 
new section: 
‘‘§ 2302e. Contract authority for advanced development of 
initial or additional prototype units 
‘‘(a) AUTHORITY.—A contract initially awarded from the competi-
tive selection of a proposal resulting from a general solicitation 
referred to in section 2302(2)(B) of this title may contain a contract 
line item or contract option for— 
‘‘(1) the provision of advanced component development, 
prototype, or initial production of technology developed under 
the contract; or 
‘‘(2) the delivery of initial or additional items if the item 
or a prototype thereof is created as the result of work performed 
under the contract. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MINIMAL AMOUNT.—A contract line item or contract 
option described in subsection (a)(2) shall require the delivery 
of the minimal amount of initial or additional items to allow 
for the timely competitive solicitation and award of a follow- 
on development or production contract for those items. 
‘‘(2) TERM.—A contract line item or contract option 
described in subsection (a) shall be for a term of not more 
than 2 years. 
‘‘(3) DOLLAR
VALUE
OF
WORK.—The dollar value of the 
work to be performed pursuant to a contract line item or 
contract option described in subsection (a) may not exceed 
$100,000,000, in fiscal year 2017 constant dollars. 
‘‘(4) APPLICABILITY.—The authority provided in subsection 
(a) applies only to the Secretary of Defense, the Secretary 
of the Army, the Secretary of the Navy, and the Secretary 
of the Air Force.’’.
H. R. 2810—212 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2302d the following new item: 
‘‘2302e. Contract authority for advanced development of initial or additional proto-
type units.’’. 
(b) REPEAL
OF OBSOLETE AUTHORITY.—Section 819 of the 
National Defense Authorization Act for Fiscal Year 2010 (Public 
Law 111–84; 10 U.S.C. 2302 note) is hereby repealed. 
SEC. 862. METHODS FOR ENTERING INTO RESEARCH AGREEMENTS. 
Section 2358(b) of title 10, United States Code, is amended— 
(1) in paragraph (3), by striking ‘‘or’’; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following new paragraphs: 
‘‘(5) by transactions (other than contracts, cooperative 
agreements, and grants) entered into pursuant to section 2371 
or 2371b of this title; or 
‘‘(6) by purchases through procurement for experimental 
purposes pursuant to section 2373 of this title.’’. 
SEC. 863. EDUCATION AND TRAINING FOR TRANSACTIONS OTHER 
THAN CONTRACTS AND GRANTS. 
Section 2371 of title 10, United States Code, is amended— 
(1) by redesignating subsection (g) as subsection (h); and 
(2) by inserting after subsection (f) the following new sub-
section: 
‘‘(g) EDUCATION
AND TRAINING.—The Secretary of Defense 
shall— 
‘‘(1) ensure that management, technical, and contracting 
personnel of the Department of Defense involved in the award 
or administration of transactions under this section or other 
innovative forms of contracting are afforded opportunities for 
adequate education and training; and 
‘‘(2) establish minimum levels and requirements for contin-
uous and experiential learning for such personnel, including 
levels and requirements for acquisition certification programs.’’. 
SEC. 864. OTHER TRANSACTION AUTHORITY FOR CERTAIN PROTOTYPE 
PROJECTS. 
(a) EXPANDED AUTHORITY
FOR PROTOTYPE PROJECTS.—Sub-
section (a)(2) of section 2371b of title 10, United States Code, 
is amended— 
(1) by striking ‘‘for a prototype project’’ each place such 
term appears and inserting ‘‘for a transaction (for a prototype 
project)’’; 
(2) in subparagraph (A)— 
(A) 
by 
striking 
‘‘$50,000,000’’ 
and 
inserting 
‘‘$100,000,000’’; and 
(B) 
by 
striking 
‘‘$250,000,000’’ 
and 
inserting 
‘‘$500,000,000’’; and 
(3) in subparagraph (B), by striking ‘‘$250,000,000’’ and 
inserting ‘‘$500,000,000’’. 
(b) CLARIFICATION OF INCLUSION OF SMALL BUSINESSES PARTICI-
PATING IN SBIR OR STTR.—Subparagraph (B) of section 2371b(d)(1) 
of title 10, United States Code, is amended by inserting ‘‘(including 
small businesses participating in a program described under section
H. R. 2810—213 
9 of the Small Business Act (15 U.S.C. 638))’’ after ‘‘small 
businesses’’. 
(c) MODIFICATION OF COST SHARING REQUIREMENT FOR USE 
OF OTHER TRANSACTION AUTHORITY.—Subparagraph (C) of such 
section is amended by striking ‘‘provided by parties to the trans-
action’’ and inserting ‘‘provided by sources other than’’. 
(d) USE
OF OTHER TRANSACTION AUTHORITY
FOR ONGOING 
PROTOTYPE PROJECTS.—Subsection (f)(1) of section 2371b of title 
10, United States Code, is amended by adding at the end the 
following: ‘‘A transaction includes all individual prototype sub-
projects awarded under the transaction to a consortium of United 
States industry and academic institutions.’’. 
SEC. 865. AMENDMENT TO NONTRADITIONAL AND SMALL CON-
TRACTOR INNOVATION PROTOTYPING PROGRAM. 
Section 884(d) of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2318; 10 U.S.C. 
2302 note) is amended— 
(1) by redesignating paragraph (9) as paragraph (10); and 
(2) by inserting after paragraph (8) the following new para-
graph (9): 
‘‘(9) Unmanned ground logistics and unmanned air logistics 
capabilities enhancement.’’. 
SEC. 866. MIDDLE TIER OF ACQUISITION FOR RAPID PROTOTYPE AND 
RAPID FIELDING. 
Section 804(c)(2) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 note) 
is amended— 
(1) by striking subparagraph (C); and 
(2) by redesignating subparagraphs (D) and (E) as subpara-
graphs (C) and (D), respectively. 
SEC. 867. PREFERENCE FOR USE OF OTHER TRANSACTIONS AND 
EXPERIMENTAL AUTHORITY. 
In the execution of science and technology and prototyping 
programs, the Secretary of Defense shall establish a preference, 
to be applied in circumstances determined appropriate by the Sec-
retary, for using transactions other than contracts, cooperative 
agreements, and grants entered into pursuant to sections 2371 
and 2371b of title 10, United States Code, and authority for procure-
ment for experimental purposes pursuant to section 2373 of title 
10, United States Code. 
SEC. 868. PROTOTYPE PROJECTS TO DIGITIZE DEFENSE ACQUISITION 
REGULATIONS, POLICIES, AND GUIDANCE, AND EMPOWER 
USER TAILORING OF ACQUISITION PROCESS. 
(a) IN GENERAL.—The Secretary of Defense, acting through 
the Under Secretary of Defense for Research and Engineering, 
shall conduct development efforts to develop prototypes to digitize 
defense acquisition regulations, policies, and guidance and to 
develop a digital decision support tool that facilitates the ability 
of users to tailor programs in accordance with existing laws, regula-
tions, and guidance. 
(b) ELEMENTS.—Under the prototype projects, the Secretary 
shall— 
(1) convert existing acquisition policies, guides, memos, 
templates, and reports to an online, interactive digital format
H. R. 2810—214 
to create a dynamic, integrated, and authoritative knowledge 
environment for purposes of assisting program managers and 
the acquisition workforce of the Department of Defense to navi-
gate the complex lifecycle for each major type of acquisition 
program or activity of the Department; 
(2) as part of this digital environment, create a digital 
decision support capability that uses decision trees and tailored 
acquisition models to assist users to develop strategies and 
facilitate coordination and approvals; and 
(3) as part of this environment, establish a foundational 
data layer to enable advanced data analytics on the acquisition 
enterprise of the Department, to include business process re-
engineering to improve productivity. 
(c) USE OF PROTOTYPES IN ACQUISITION ACTIVITIES.—The Under 
Secretary of Defense for Research and Engineering shall encourage 
the use of these prototypes to model, develop, and test any proce-
dures, policies, instructions, or other forms of direction and guidance 
that may be required to support acquisition training, practices, 
and policies of the Department of Defense. 
(d) FUNDING.—The Secretary may use the authority under sec-
tion 1705(e)(4)(B) of title 10, United States Code, to develop acquisi-
tion support prototypes and tools under this program. 
Subtitle H—Provisions Relating to 
Software Acquisition 
SEC. 871. NONCOMMERCIAL COMPUTER SOFTWARE ACQUISITION 
CONSIDERATIONS. 
(a) IN GENERAL.— 
(1) REQUIREMENT.—Chapter 137 of title 10, United States 
Code, as amended by section 802, is further amended by 
inserting after section 2322 the following new section: 
‘‘§ 2322a. Requirement for consideration of certain matters 
during acquisition of noncommercial computer 
software 
‘‘(a) CONSIDERATION REQUIRED.—As part of any negotiation for 
the acquisition of noncommercial computer software, the Secretary 
of Defense shall ensure that such negotiations consider, to the 
maximum extent practicable, acquisition, at the appropriate time 
in the life cycle of the noncommercial computer software, of all 
software and related materials necessary— 
‘‘(1) to reproduce, build, or recompile the software from 
original source code and required libraries; 
‘‘(2) to conduct required computer software testing; and 
‘‘(3) to deploy working computer software system binary 
files on relevant system hardware. 
‘‘(b) DELIVERY OF SOFTWARE AND RELATED MATERIALS.—Any 
noncommercial computer software or related materials required 
to be delivered as a result of considerations in subsection (a) shall, 
to the extent appropriate as determined by the Secretary— 
‘‘(1) include computer software delivered in a useable, dig-
ital format; 
‘‘(2) not rely on external or additional software code or 
data, unless such software code or data is included in the 
items to be delivered; and
H. R. 2810—215 
‘‘(3) in the case of negotiated terms that do not allow 
for the inclusion of dependent software code or data, sufficient 
documentation to support maintenance and understanding of 
interfaces and software revision history.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by adding after the 
item relating to section 2322, as added by section 802, the 
following new item: 
‘‘2322a. Requirement for consideration of certain matters during acquisition of non-
commercial computer software.’’. 
(b) GUIDANCE.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall issue updated 
guidance to implement section 2322a of title 10, United States 
Code, as added by subsection (a). 
SEC. 872. DEFENSE INNOVATION BOARD ANALYSIS OF SOFTWARE 
ACQUISITION REGULATIONS. 
(a) STUDY.— 
(1) IN GENERAL.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
direct the Defense Innovation Board to undertake a study on 
streamlining software development and acquisition regulations. 
(2) MEMBER PARTICIPATION.—The Chairman of the Defense 
Innovation Board shall select appropriate members from the 
membership of the Board to participate in the study, and may 
recommend additional temporary members or contracted sup-
port personnel to the Secretary of Defense for the purposes 
of the study. In considering additional appointments to the 
study, the Secretary of Defense shall ensure that members 
have significant technical, legislative, or regulatory expertise 
and reflect diverse experiences in the public and private sector. 
(3) SCOPE.—The study conducted pursuant to paragraph 
(1) shall— 
(A) review the acquisition regulations applicable to, 
and organizational structures within, the Department of 
Defense with a view toward streamlining and improving 
the efficiency and effectiveness of software acquisition in 
order to maintain defense technology advantage; 
(B) review ongoing software development and acquisi-
tion programs, including a cross section of programs that 
offer a variety of application types, functional communities, 
and scale, in order to identify case studies of best and 
worst practices currently in use within the Department 
of Defense; 
(C) produce specific and detailed recommendations for 
any legislation, including the amendment or repeal of regu-
lations, as well as non-legislative approaches, that the 
members of the Board conducting the study determine 
necessary to— 
(i) streamline development and procurement of 
software; 
(ii) adopt or adapt best practices from the private 
sector applicable to Government use; 
(iii) promote rapid adoption of new technology; 
(iv) improve the talent management of the software 
acquisition workforce, including by providing incentives
H. R. 2810—216 
for the recruitment and retention of such workforce 
within the Department of Defense; 
(v) ensure continuing financial and ethical integ-
rity in procurement; and 
(vi) protect the best interests of the Department 
of Defense; and 
(D) produce such additional recommendations for legis-
lation as such members consider appropriate. 
(4) ACCESS
TO
INFORMATION.—The Secretary of Defense 
shall provide the Defense Innovation Board with timely access 
to appropriate information, data, resources, and analysis so 
that the Board may conduct a thorough and independent anal-
ysis as required under this subsection. 
(b) REPORTS.— 
(1) INTERIM REPORTS.—Not later than 150 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit a report to or brief the congressional defense 
committees on the interim findings of the study conducted 
pursuant to subsection (a). The Defense Innovation Board shall 
provide regular updates to the Secretary of Defense and the 
congressional defense committees for purposes of providing the 
interim report. 
(2) FINAL REPORT.—Not later than one year after the Sec-
retary of Defense directs the Defense Advisory Board to conduct 
the study, the Board shall transmit a final report of the study 
to the Secretary. Not later than 30 days after receiving the 
final report, the Secretary of Defense shall transmit the final 
report, together with such comments as the Secretary deter-
mines appropriate, to the congressional defense committees. 
SEC. 873. PILOT PROGRAM TO USE AGILE OR ITERATIVE DEVELOP-
MENT METHODS TO TAILOR MAJOR SOFTWARE-INTENSIVE 
WARFIGHTING SYSTEMS AND DEFENSE BUSINESS SYS-
TEMS. 
(a) PILOT PROGRAM.— 
(1) IN GENERAL.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense, in 
consultation with the Secretaries of the military departments 
and the chiefs of the armed forces, shall establish a pilot 
program to tailor and simplify software development require-
ments and methods for major software-intensive warfighting 
systems and defense business systems. 
(2) IMPLEMENTATION PLAN FOR PILOT PROGRAM.—Not later 
than 120 days after the date of the enactment of this Act, 
the Secretary of Defense, in consultation with the Secretaries 
of the military departments and the chiefs of the armed forces, 
shall develop a plan for implementing the pilot program 
required under this subsection, including guidance for imple-
menting the program and for selecting systems for participation 
in the program. 
(3) SELECTION OF SYSTEMS FOR PILOT PROGRAM.— 
(A) The implementation plan shall require that systems 
be selected as follows: 
(i) For major software-intensive warfighting sys-
tems, one system per armed force and one defense- 
wide system, including at least one major defense
H. R. 2810—217 
acquisition program or major automated information 
system. 
(ii) For defense business systems, not fewer than 
two systems and not greater than eight systems. 
(B) In selecting systems for participation, the Secretary 
shall prioritize systems as follows: 
(i) For major software-intensive warfighting sys-
tems, systems that— 
(I) have identified software development as 
a high risk; 
(II) have experienced cost growth and schedule 
delay; and 
(III) did not deliver any operational capability 
within the prior calendar year. 
(ii) For defense business systems, systems that— 
(I) have experienced cost growth and schedule 
delay; 
(II) did not deliver any operational capability 
within the prior calendar year; and 
(III) 
are 
underperforming 
other 
systems 
within a defense business system portfolio with 
similar user requirements. 
(b) REALIGNMENT PLANS.— 
(1) IN GENERAL.—Not later than 60 days after selecting 
a system for the pilot program under subsection (a)(3), the 
Secretary shall develop a plan for realigning the system by 
breaking down the system into smaller increments using agile 
or iterative development methods. The realignment plan shall 
include a revised cost estimate that is lower than the cost 
estimate for the system that was current as of the date of 
the enactment of this Act. 
(2) REALIGNMENT
EXECUTION.—Each increment for a 
realigned system shall— 
(A) be designed to deliver a meaningfully useful capa-
bility within the first 180 days following realignment; 
(B) be designed to deliver subsequent meaningfully 
useful capabilities in time periods of less than 180 days; 
(C) incorporate multidisciplinary teams focused on soft-
ware production that prioritize user needs and control of 
total cost of ownership; 
(D) be staffed with highly qualified technically trained 
staff and personnel with management and business process 
expertise in leadership positions to support requirements 
modification, acquisition strategy, and program decision-
making; 
(E) ensure that the acquisition strategy for the 
realigned system is broad enough to allow for proposals 
of a service, system, modified business practice, configura-
tion of personnel, or combination thereof for implementing 
the strategy; 
(F) include periodic engagement with the user commu-
nity, as well as representation by the user community 
in program management and software production activity; 
(G) ensure that the acquisition strategy for the 
realigned system favors outcomes-based requirements defi-
nition and capability as a service, including the establish-
ment of technical evaluation criteria as outcomes to be
H. R. 2810—218 
used to negotiate service-level agreements with vendors; 
and 
(H) consider options for termination of the relationship 
with any vendor unable or unwilling to offer terms that 
meet the requirements of this section. 
(c) REMOVAL OF SYSTEMS.—The Secretary may remove a system 
selected for the pilot program under subsection (a)(3) only after 
the Secretary submits to the Committees on Armed Services of 
the Senate and House of Representatives a written determination 
that indicates that the selected system has been unsuccessful in 
reducing cost or schedule growth, or is not meeting the overall 
needs of the pilot program. 
(d) EDUCATION AND TRAINING IN AGILE OR ITERATIVE DEVELOP-
MENT METHODS.— 
(1) TRAINING REQUIREMENT.—The Secretary shall ensure 
that any personnel from the relevant organizations in each 
of the military departments and Defense Agencies participating 
in the pilot program, including organizations responsible for 
engineering, budgeting, contracting, test and evaluation, 
requirements validation, and certification and accreditation, 
receive targeted training in agile or iterative development 
methods, including the interim course required by section 891 
of this Act. 
(2) SUPPORT.—In carrying out the pilot program under 
subsection (a), the Secretary shall ensure that personnel partici-
pating in the program provide feedback to inform the develop-
ment of education and training curricula as required by section 
891. 
(e) SUNSET.—The pilot program required under subsection (a) 
shall terminate on September 30, 2023. Any system selected under 
subsection (a)(3) for the pilot program shall continue after that 
date through the execution of its realignment plan. 
(f) AGILE OR ITERATIVE DEVELOPMENT DEFINED.—In this sec-
tion, the term ‘‘agile or iterative development’’, with respect to 
software— 
(1) means acquisition pursuant to a method for delivering 
multiple, rapid, incremental capabilities to the user for oper-
ational use, evaluation, and feedback not exclusively linked 
to any single, proprietary method or process; and 
(2) involves— 
(A) the incremental development and fielding of 
capabilities, commonly called ‘‘spirals’’, ‘‘spins’’, or ‘‘sprints’’, 
which can be measured in a few weeks or months; and 
(B) continuous participation and collaboration by users, 
testers, and requirements authorities. 
SEC. 874. SOFTWARE DEVELOPMENT PILOT PROGRAM USING AGILE 
BEST PRACTICES. 
(a) IN GENERAL.—Not later than 30 days after the date of 
the enactment of this Act, the Secretary of Defense shall identify 
no fewer than four and up to eight software development activities 
within the Department of Defense or military departments to be 
developed in a pilot program using agile acquisition methods. 
(b) STREAMLINED PROCESSES.—Software development activities 
identified under subsection (a) shall be selected for the pilot program 
and developed without incorporation of the following contract or 
transaction requirements:
H. R. 2810—219 
(1) Earned value management (EVM) or EVM-like 
reporting. 
(2) Development of integrated master schedule. 
(3) Development of integrated master plan. 
(4) Development of technical requirement document. 
(5) Development of systems requirement documents. 
(6) Use of information technology infrastructure library 
agreements. 
(7) Use of software development life cycle (methodology). 
(c) ROLES AND RESPONSIBILITIES.— 
(1) IN GENERAL.—Selected activities shall include the fol-
lowing roles and responsibilities: 
(A) A program manager that is authorized to make 
all programmatic decisions within the overarching activity 
objectives, including resources, funding, personnel, and con-
tract or transaction termination recommendations. 
(B) A product owner that reports directly to the pro-
gram manager and is responsible for the overall design 
of the product, prioritization of roadmap elements and 
interpretation 
of 
their 
acceptance 
criteria, 
and 
prioritization of the list of all features desired in the 
product. 
(C) An engineering lead that reports directly to the 
program manager and is responsible for the implementa-
tion and operation of the software. 
(D) A design lead that reports directly to the program 
manager and is responsible for identifying, communicating, 
and visualizing user needs through a human-centered 
design process. 
(2) QUALIFICATIONS.—The Secretary shall establish quali-
fications for personnel filling the positions described in para-
graph (1) prior to their selection. The qualifications may not 
include a positive education requirement and must be based 
on technical expertise or experience in delivery of software 
products, including agile concepts. 
(3) COORDINATION PLAN FOR TESTING AND CERTIFICATION 
ORGANIZATIONS.—The program manager shall ensure the avail-
ability of resources for test and certification organizations sup-
port of iterative development processes. 
(d) PLAN.—The Secretary of Defense shall develop a plan for 
each selected activity under the pilot program. The plan shall 
include the following elements: 
(1) Definition of a product vision, identifying a succinct, 
clearly defined need the software will address. 
(2) Definition of a product road map, outlining a non-
contractual plan that identifies short-term and long-term 
product goals and specific technology solutions to help meet 
those goals and adjusts to mission and user needs at the 
product owner’s discretion. 
(3) The use of a broad agency announcement, other trans-
action authority, or other rapid merit-based solicitation proce-
dure. 
(4) Identification of, and continuous engagement with, end 
users. 
(5) Frequent and iterative end user validation of features 
and usability consistent with the principles outlined in the 
Digital Services Playbook of the U.S. Digital Service.
H. R. 2810—220 
(6) Use of commercial best practices for advanced com-
puting systems, including, where applicable— 
(A) Automated testing, integration, and deployment; 
(B) compliance with applicable commercial accessibility 
standards; 
(C) capability to support modern versions of multiple, 
common web browsers; 
(D) capability to be viewable across commonly used 
end user devices, including mobile devices; and 
(E) built-in application monitoring. 
(e) PROGRAM SCHEDULE.—The Secretary shall ensure that each 
selected activity includes— 
(1) award processes that take no longer than three months 
after a requirement is identified; 
(2) planned frequent and iterative end user validation of 
implemented features and their usability; 
(3) delivery of a functional prototype or minimally viable 
product in three months or less from award; and 
(4) follow-on delivery of iterative development cycles no 
longer than four weeks apart, including security testing and 
configuration management as applicable. 
(f) OVERSIGHT METRICS.—The Secretary shall ensure that the 
selected activities— 
(1) use a modern tracking tool to execute requirements 
backlog tracking; and 
(2) use agile development metrics that, at a minimum, 
track— 
(A) pace of work accomplishment; 
(B) completeness of scope of testing activities (such 
as code coverage, fault tolerance, and boundary testing); 
(C) product quality attributes (such as major and minor 
defects and measures of key performance attributes and 
quality attributes); 
(D) delivery progress relative to the current product 
roadmap; and 
(E) goals for each iteration. 
(g) RESTRICTIONS.— 
(1) USE
OF
FUNDS.—No funds made available for the 
selected activities may be expended on estimation or evaluation 
using source lines of code methodologies. 
(2) CONTRACT TYPES.—The Secretary of Defense may not 
use lowest price technically acceptable contracting methods or 
cost plus contracts to carry out selected activities under this 
section, and shall encourage the use of existing streamlined 
and flexible contracting arrangements. 
(h) REPORTS.— 
(1) SOFTWARE DEVELOPMENT ACTIVITY COMMENCEMENT.— 
(A) IN GENERAL.—Not later than 30 days before the 
commencement of a software development activity under 
the pilot program under subsection (a), the Secretary shall 
submit to the congressional defense committees a report 
on the activity (in this subsection referred to as a ‘‘pilot 
activity’’). 
(B) ELEMENTS.—The report on a pilot activity under 
this paragraph shall set forth a description of the pilot 
activity, including the following information: 
(i) The purpose of the pilot activity.
H. R. 2810—221 
(ii) The duration of the pilot activity. 
(iii) The efficiencies and benefits anticipated to 
accrue to the Government under the pilot program. 
(2) SOFTWARE DEVELOPMENT ACTIVITY COMPLETION.— 
(A) IN GENERAL.—Not later than 60 days after the 
completion of a pilot activity, the Secretary shall submit 
to the congressional defense committees a report on the 
pilot activity. 
(B) ELEMENTS.—The report on a pilot activity under 
this paragraph shall include the following elements: 
(i) A description of results of the pilot activity. 
(ii) Such recommendations for legislative or 
administrative action as the Secretary considers appro-
priate in light of the pilot activity. 
(i) DEFINITIONS.—In this section: 
(1) AGILE ACQUISITION.—The term ‘‘agile acquisition’’ means 
acquisition using agile or iterative development. 
(2) AGILE OR ITERATIVE DEVELOPMENT.—The term ‘‘agile 
or iterative development’’, with respect to software— 
(A) means acquisition pursuant to a method for deliv-
ering multiple, rapid, incremental capabilities to the user 
for operational use, evaluation, and feedback not exclu-
sively linked to any single, proprietary method or process; 
and 
(B) involves— 
(i) the incremental development and fielding of 
capabilities, commonly called ‘‘spirals’’, ‘‘spins’’, or 
‘‘sprints’’, which can be measured in a few weeks or 
months; and 
(ii) continuous participation and collaboration by 
users, testers, and requirements authorities. 
SEC. 875. PILOT PROGRAM FOR OPEN SOURCE SOFTWARE. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall initiate 
for the Department of Defense the open source software pilot pro-
gram established by the Office of Management and Budget Memo-
randum M-16-21 titled ‘‘Federal Source Code Policy: Achieving Effi-
ciency, Transparency, and Innovation through Reusable and Open 
Source Software’’ and dated August 8, 2016. 
(b) REPORT TO CONGRESS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
provide a report to Congress with details of the plan of the Depart-
ment of Defense to implement the pilot program required by sub-
section (a). Such plan shall include identifying candidate software 
programs, selection criteria, intellectual property and licensing 
issues, and other matters determined by the Secretary. 
(c) COMPTROLLER GENERAL REPORT.—Not later than June 1, 
2019, the Comptroller General of the United States shall provide 
a report to Congress on the implementation of the pilot program 
required by subsection (a) by the Secretary of Defense. The report 
shall address, at a minimum, the compliance of the Secretary with 
the requirements of the Office of Management and Budget Memo-
randum M-16-21, the views of various software and information 
technology stakeholders in the Department of Defense, and any 
other matters determined by the Comptroller General.
H. R. 2810—222 
Subtitle I—Other Matters 
SEC. 881. EXTENSION OF MAXIMUM DURATION OF FUEL STORAGE CON-
TRACTS. 
(a) EXTENSION.—Section 2922(b) of title 10, United States Code, 
is amended by striking ‘‘20 years’’ and inserting ‘‘30 years’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to contracts entered into on or after the 
date of the enactment of this Act, and may be applied to a contract 
entered into before that date if the total contract period under 
the contract (including options) has not expired as of the date 
of any extension of such contract period by reason of such amend-
ment. 
SEC. 882. PROCUREMENT OF AVIATION CRITICAL SAFETY ITEMS. 
Section 814(a) of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2271; 10 U.S.C. 
2302 note) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘or an aviation critical safety item 
(as defined in section 2319(g) of this title)’’ after ‘‘personal 
protective equipment’’; and 
(B) by inserting ‘‘equipment or’’ after ‘‘failure of the’’; 
and 
(2) in paragraph (2), by inserting ‘‘or item’’ after ‘‘equip-
ment’’. 
SEC. 883. MODIFICATIONS TO THE ADVISORY PANEL ON STREAM-
LINING AND CODIFYING ACQUISITION REGULATIONS. 
(a) EXTENSION OF DATE FOR FINAL REPORT.— 
(1) TRANSMITTAL
OF
PANEL
FINAL
REPORT.—Subsection 
(e)(1) of section 809 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 889), 
as amended by section 863(d) of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114–328; 
130 Stat. 2303), is amended— 
(A) by striking ‘‘Not later than two years after the 
date on which the Secretary of Defense establishes the 
advisory panel’’ and inserting ‘‘Not later than January 15, 
2019’’; and 
(B) by striking ‘‘the Secretary.’’ and inserting ‘‘the Sec-
retary of Defense and the congressional defense commit-
tees.’’. 
(2) SECRETARY OF DEFENSE ACTION ON FINAL REPORT.— 
Subsection (e)(4) of such section is amended— 
(A) by striking ‘‘Not later than 30 days’’ and inserting 
‘‘Not later than 60 days’’; and 
(B) by striking ‘‘the final report, together with such 
comments as the Secretary determines appropriate,’’ and 
inserting ‘‘such comments as the Secretary determines 
appropriate’’. 
(b) TERMINATION OF PANEL.—Such section is further amended 
by adding at the end the following new subsection: 
‘‘(g) TERMINATION OF PANEL.—The advisory panel shall termi-
nate 180 days after the date on which the final report of the 
panel is transmitted pursuant to subsection (e)(1).’’.
H. R. 2810—223 
(c) TECHNICAL AMENDMENT.—Subsection (d) of such section is 
amended by striking ‘‘resources,,’’ and inserting ‘‘resources,’’. 
SEC. 884. REPEAL OF EXPIRED PILOT PROGRAM FOR LEASING 
COMMERCIAL UTILITY CARGO VEHICLES. 
Section 807(c) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104–106; 10 U.S.C. 2401a note) is 
repealed. 
SEC. 885. EXCEPTION FOR BUSINESS OPERATIONS FROM REQUIRE-
MENT TO ACCEPT $1 COINS. 
(a) IN GENERAL.—Paragraph (1) of section 5112(p) of title 31, 
United States Code, is amended by adding at the end the following 
new flush sentence: 
‘‘This paragraph does not apply with respect to business oper-
ations conducted by any entity under a contract with an agency 
or instrumentality of the United States, including with any 
nonappropriated fund instrumentality established under title 
10, United States Code.’’. 
(b) CONFORMING
AMENDMENT.—Such paragraph is further 
amended— 
(1) by striking ‘‘and all entities that operate any business, 
including vending machines, on any premises owned by the 
United States or under the control of any agency or instrumen-
tality of the United States, including the legislative and judicial 
branches of the Federal Government,’’; and 
(2) by inserting ‘‘and’’ before ‘‘all transit systems’’. 
(c) TECHNICAL AMENDMENT.—Subparagraph (B) of such para-
graph is amended by striking ‘‘displays’’ and inserting ‘‘display’’. 
SEC. 886. DEVELOPMENT OF PROCUREMENT ADMINISTRATIVE LEAD 
TIME. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall develop, 
make available for public comment, and finalize— 
(1) a definition of the term ‘‘Procurement Administrative 
Lead Time’’ or ‘‘PALT’’, to be applied Department of Defense- 
wide, that describes the amount of time from the date on 
which a solicitation is issued to the date of an initial award 
of a contract or task order of the Department of Defense; 
and 
(2) a plan for measuring and publicly reporting data on 
PALT for Department of Defense contracts and task orders 
above the simplified acquisition threshold. 
(b) REQUIREMENT FOR DEFINITION.—Unless the Secretary deter-
mines otherwise, the amount of time in the definition of PALT 
developed under subsection (a) shall— 
(1) begin on the date on which the initial solicitation is 
issued for a contract or task order of the Department of Defense 
by the Secretary of a military department or head of a Defense 
Agency; and 
(2) end on the date of the award of the contract or task 
order. 
(c) COORDINATION.—In developing the definition of PALT, the 
Secretary shall coordinate with— 
(1) the senior contracting official of each military depart-
ment and Defense Agency to determine the variations of the
H. R. 2810—224 
definition in use across the Department of Defense and each 
military department and Defense Agency; and 
(2) the Administrator of the General Services Administra-
tion on modifying the existing data system of the Federal 
Government to determine the date on which the initial solicita-
tion is issued. 
(d) USE OF EXISTING PROCUREMENT DATA SYSTEMS.—In devel-
oping the plan for measuring and publicly reporting data on PALT 
required by subsection (a), the Secretary shall, to the maximum 
extent practicable, rely on the information contained in the Federal 
procurement data system established pursuant to section 1122(a)(4) 
of title 41, United States Code, including any modifications to 
that system. 
SEC. 887. NOTIONAL MILESTONES AND STANDARD TIMELINES FOR 
CONTRACTS FOR FOREIGN MILITARY SALES. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary of Defense shall establish 
specific notional milestones and standard timelines for the 
Department of Defense to achieve such milestones in its proc-
essing of a foreign military sale (as authorized under chapter 
2 of the Arms Export Control Act (22 U.S.C. 2761 et seq.)). 
Such milestones and timelines— 
(A) may vary depending on the complexity of the for-
eign military sale; and 
(B) shall cover the period beginning on the date of 
receipt of a complete letter of request (as described in 
chapter 5 of the Security Assistance Management Manual 
of the Defense Security Cooperation Agency) from a foreign 
country and ending on the date of the final delivery of 
a defense article or defense service sold through the foreign 
military sale. 
(2) REPORT.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall submit to the 
appropriate committees of Congress a report describing the 
milestones and timelines developed pursuant to paragraph (1) 
of this section. 
(b) SUBMISSIONS TO CONGRESS.— 
(1) QUARTERLY NOTIFICATION.—During the period begin-
ning 180 days after the date of the enactment of this Act 
and ending on December 31, 2021, the Secretary shall submit 
to the appropriate committees of Congress, on a quarterly basis, 
a report that includes a list of each foreign military sale with 
a value greater than or equal to the dollar threshold for congres-
sional notification under section 36 of the Arms Export Control 
Act (22 U.S.C. 2776)— 
(A) for which the final delivery of a defense article 
or defense service has not been completed; and 
(B) that has not met a standard timeline to achieve 
a notional milestone as established under subsection (a). 
(2) ANNUAL REPORT.—Not later than November 1, 2019, 
and annually thereafter until December 31, 2021, the Secretary 
shall submit to the appropriate committees of Congress a report 
that summarizes— 
(A) the number, set forth separately by dollar value 
and notional milestone, of foreign military sales that met
H. R. 2810—225 
the standard timeline to achieve a notional milestone estab-
lished under subsection (a) during the preceding fiscal year; 
and 
(B) the number, set forth separately by dollar value 
and notional milestone, of each foreign military sale that 
did not meet the standard timeline to achieve a notional 
milestone established under subsection (a), and a descrip-
tion of any extenuating factors explaining why such a sale 
did not achieve such milestone. 
(c) DEFINITIONS.—In this section— 
(1) the terms ‘‘defense article’’ and ‘‘defense service’’ have 
the meanings given those terms, respectively, in section 47 
of the Arms Export Control Act (22 U.S.C. 2794); and 
(2) the term ‘‘appropriate committees of Congress’’ means— 
(A) the Committee on Armed Services and the Com-
mittee on Foreign Relations of the Senate; and 
(B) the Committee on Armed Services and the Com-
mittee on Foreign Affairs of the House of Representatives. 
SEC. 888. ASSESSMENT AND AUTHORITY TO TERMINATE OR PROHIBIT 
CONTRACTS FOR PROCUREMENT FROM CHINESE COMPA-
NIES PROVIDING SUPPORT TO THE DEMOCRATIC PEO-
PLE’S REPUBLIC OF KOREA. 
(a) ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense, in consultation 
with the Secretary of State, the Secretary of the Treasury, 
and the Director of National Intelligence, shall conduct an 
assessment of trade between the People’s Republic of China 
and the Democratic People’s Republic of Korea, including ele-
ments deemed to be important to United States national secu-
rity and defense. 
(2) ELEMENTS.—The assessment required by paragraph (1) 
shall— 
(A) assess the composition of all trade between China 
and the Democratic People’s Republic of Korea, including 
trade in goods and services; 
(B) identify whether any Chinese commercial entities 
that are engaged in such trade materially support illicit 
activities on the part of North Korea; 
(C) evaluate the extent to which the United States 
Government procures goods or services from any commer-
cial entity identified under subparagraph (B); 
(D) provide a list of commercial entities identified 
under subparagraph (B) that provide defense goods or serv-
ices for the Department of Defense; and 
(E) evaluate the ramifications to United States national 
security, including any impacts to the defense industrial 
base, Department of Defense acquisition programs, and 
Department of Defense logistics or supply chains, of prohib-
iting procurements from commercial entities listed under 
subparagraph (D). 
(3) REPORT.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report on the assessment required by paragraph 
(1). The report shall be submitted in unclassified form, but 
may contain a classified annex.
H. R. 2810—226 
(b) AUTHORITY.—The Secretary of Defense may terminate 
existing contracts or prohibit the award of contracts for the procure-
ment of goods or services for the Department of Defense from 
a Chinese commercial entity included on the list described under 
subsection (a)(2)(D) based on a determination informed by the 
assessment required under subsection (a)(1). 
(c) NOTIFICATION.—The Secretary of Defense shall submit to 
the appropriate committees of Congress a notification of, and 
detailed justification for, any exercise of the authority in subsection 
(b) not less than 30 days before the date on which the authority 
is exercised. 
(d) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this 
section, the term ‘‘appropriate committees of Congress’’ means— 
(1) the Committee on Armed Services and the Committee 
on Foreign Relations of the Senate; and 
(2) the Committee on Armed Services and the Committee 
on Foreign Affairs of the House of Representatives. 
SEC. 889. REPORT ON DEFENSE CONTRACTING FRAUD. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on defense con-
tracting fraud. 
(b) ELEMENTS.—The report required under subsection (a) shall 
include the following elements: 
(1) A summary of fraud-related criminal convictions and 
civil judgments or settlements over the previous five fiscal 
years. 
(2) A listing of contractors that within the previous five 
fiscal years performed contracts for the Department of Defense 
and were debarred or suspended from Federal contracting based 
on a criminal conviction for fraud. 
(3) An assessment of the total value of Department of 
Defense contracts entered into during the previous five fiscal 
years with contractors that have been indicted for, settled 
charges of, been fined by any Federal department or agency 
for, or been convicted of fraud in connection with any contract 
or other transaction entered into with the Federal Government. 
(4) Recommendations by the Inspector General of the 
Department of Defense or other appropriate Department of 
Defense official regarding how to penalize contractors repeat-
edly involved in fraud in connection with contracts or other 
transactions entered into with the Federal Government, 
including an update on implementation by the Department 
of any previous such recommendations. 
SEC. 890. COMPTROLLER GENERAL REPORT ON CONTRACTOR BUSI-
NESS SYSTEM REQUIREMENTS. 
(a) EVALUATION.—Not later than 1 year after the date of enact-
ment of this Act, the Comptroller General of the United States 
shall submit to the congressional defense committees a report evalu-
ating the implementation and effectiveness of the program for the 
improvement of contractor business systems established pursuant 
to section 893 of the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 2302 
note). The report shall— 
(1) describe how the requirements of such program were 
implemented, including the roles and responsibilities of relevant
H. R. 2810—227 
Defense Agencies and known costs to the Federal Government 
and covered contractors; 
(2) analyze the extent to which implementation of such 
program has affected, if at all, covered contractor performance 
or the management and oversight of covered contracts of the 
Department of Defense; 
(3) assess how the amendments to contractor business 
system requirements made by section 893 of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 
114–328; 130 Stat. 2324) were implemented, including— 
(A) the effects of revising the definition of ‘‘covered 
contractor’’ in section 893(g)(2) of the Ike Skelton National 
Defense Authorization Act for Fiscal Year 2011 (Public 
Law 111–383; 10 U.S.C. 2302 note) and the feasibility 
and the potential effects of further increasing the percent-
age of the total gross revenue included in the definition; 
and 
(B) the extent to which third-party independent audi-
tors have conducted contractor business system assess-
ments pursuant to section 893(c) of the Ike Skelton 
National Defense Authorization Act for Fiscal Year 2011 
(Public Law 111–383; 10 U.S.C. 2302 note); 
(4) identify any additional information or management 
practices that could enhance the process for assessing contractor 
business systems, particularly when covered contractors have 
multiple covered contracts with the Department of Defense; 
and 
(5) include any other matters the Comptroller General 
determines to be relevant. 
(b) CONTRACTOR BUSINESS SYSTEM DEFINITIONS.—In this sec-
tion, the terms ‘‘covered contractor’’, ‘‘covered contract’’, and ‘‘con-
tractor business system’’ have the meanings given in section 893 
of the Ike Skelton National Defense Authorization Act for Fiscal 
Year 2011 (Public Law 111–383; 10 U.S.C. 2302 note). 
SEC. 
891. 
TRAINING 
ON 
AGILE 
OR 
ITERATIVE 
DEVELOPMENT 
METHODS. 
(a) IN GENERAL.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense, in consultation 
with the President of the Defense Acquisition University, shall 
establish a training course at the Defense Acquisition University 
on agile or iterative development methods to provide training for 
personnel implementing and supporting the pilot programs required 
by sections 873 and 874 of this Act. 
(b) COURSE ELEMENTS.— 
(1) IN GENERAL.—The course shall be taught in residence 
at the Defense Acquisition University and shall include the 
following elements: 
(A) Training designed to instill a common under-
standing of all functional roles and dependencies involved 
in developing and producing a capability using agile or 
iterative development methods. 
(B) An exercise involving teams composed of personnel 
from pertinent functions and functional organizations 
engaged in developing an integrated agile or iterative 
development method for a specific program.
H. R. 2810—228 
(C) Instructors and content from non-governmental 
entities, as appropriate, to highlight commercial best prac-
tices in using an agile or iterative development method. 
(2) COURSE UPDATES.—The Secretary shall ensure that the 
course is updated as needed, including through incorporating 
lessons learned from the implementation of the pilot programs 
required by sections 873 and 874 of this Act in subsequent 
versions of the course. 
(c) COURSE ATTENDANCE.—The course shall be— 
(1) available for certified acquisition personnel working 
on programs or projects using agile or iterative development 
methods; and 
(2) mandatory for personnel participating in the pilot pro-
grams required by sections 873 and 874 of this Act from the 
relevant organizations in each of the military departments and 
Defense Agencies, including organizations responsible for 
engineering, budgeting, contracting, test and evaluation, 
requirements validation, and certification and accreditation. 
(d) AGILE ACQUISITION SUPPORT.—The Secretary and the senior 
acquisition executives in each of the military departments and 
Defense Agencies, in coordination with the Director of the Defense 
Digital Service, shall assign to offices supporting systems selected 
for participation in the pilot programs required by sections 873 
and 874 of this Act a subject matter expert with knowledge of 
commercial agile acquisition methods and Department of Defense 
acquisition processes to provide assistance and to advise appropriate 
acquisition authorities of the expert’s observations. 
(e) AGILE RESEARCH PROGRAM.—The President of the Defense 
Acquisition University shall establish a research program to conduct 
research on and development of agile acquisition practices and 
tools best tailored to meet the mission needs of the Department 
of Defense. 
(f) AGILE
OR ITERATIVE DEVELOPMENT DEFINED.—The term 
‘‘agile or iterative development’’, with respect to software— 
(1) means acquisition pursuant to a method for delivering 
multiple, rapid, incremental capabilities to the user for oper-
ational use, evaluation, and feedback not exclusively linked 
to any single, proprietary method or process; and 
(2) involves— 
(A) the incremental development and fielding of 
capabilities, commonly called ‘‘spirals’’, ‘‘spins’’, or ‘‘sprints’’, 
which can be measured in a few weeks or months; and 
(B) continuous participation and collaboration by users, 
testers, and requirements authorities. 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT 
Subtitle A—Office of the Secretary of Defense and Related Matters 
Sec. 901. Treatment of incumbent Under Secretary of Defense for Acquisition, 
Technology, and Logistics. 
Sec. 902. Clarification of authority of Under Secretary of Defense for Acquisition 
and Sustainment with respect to service acquisition programs for which 
the service acquisition executive is the milestone decision authority. 
Sec. 903. Executive Schedule matters relating to Under Secretary of Defense for 
Acquisition and Sustainment.
H. R. 2810—229 
Sec. 904. Consistent period of relief from active duty as a commissioned officer of 
a regular component of the Armed Forces for appointment to Under Sec-
retary of Defense positions. 
Sec. 905. Qualifications for appointment and additional duties and powers of cer-
tain officials within the Office of the Under Secretary of Defense (Comp-
troller). 
Sec. 906. Redesignation of Principal Deputy Under Secretaries of Defense as Dep-
uty Under Secretaries of Defense and related matters. 
Sec. 907. Reduction of number and elimination of specific designations of Assistant 
Secretaries of Defense. 
Sec. 908. Limitation on maximum number of Deputy Assistant Secretaries of De-
fense. 
Sec. 909. Appointment and responsibilities of Chief Information Officer of the De-
partment of Defense. 
Sec. 910. Chief Management Officer of the Department of Defense. 
Subtitle B—Data Management and Analytics 
Sec. 911. Policy on treatment of defense business system data related to business 
operations and management. 
Sec. 912. Transparency of defense management data. 
Sec. 913. Establishment of set of activities that use data analysis, measurement, 
and other evaluation-related methods to improve acquisition program 
outcomes. 
Subtitle C—Organization of Other Department of Defense Offices and Elements 
Sec. 921. Qualifications for appointment of Assistant Secretaries of the military de-
partments for financial management. 
Sec. 922. Manner of carrying out reductions in major Department of Defense head-
quarters activities pursuant to headquarters reduction plan. 
Sec. 923. Certifications on cost savings achieved by reductions in major Depart-
ment of Defense headquarters activities. 
Sec. 924. Corrosion control and prevention executives matters. 
Sec. 925. Background and security investigations for Department of Defense per-
sonnel. 
Subtitle D—Miscellaneous Reporting Requirements 
Sec. 931. Additional elements in reports on policy, organization, and management 
goals of the Secretary of Defense for the Department of Defense. 
Sec. 932. Report and sense of Congress on responsibility for developmental test and 
evaluation within the Office of the Secretary of Defense. 
Sec. 933. Report on Office of Corrosion Policy and Oversight. 
Subtitle D—Other Matters 
Sec. 941. Commission on the National Defense Strategy for the United States. 
Subtitle A—Office of the Secretary of 
Defense and Related Matters 
SEC. 901. TREATMENT OF INCUMBENT UNDER SECRETARY OF 
DEFENSE FOR ACQUISITION, TECHNOLOGY, AND LOGIS-
TICS. 
Section 901(a) of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2339; 10 U.S.C. 
133a note) is amended by striking paragraph (2). 
SEC. 902. CLARIFICATION OF AUTHORITY OF UNDER SECRETARY OF 
DEFENSE FOR ACQUISITION AND SUSTAINMENT WITH 
RESPECT TO SERVICE ACQUISITION PROGRAMS FOR 
WHICH THE SERVICE ACQUISITION EXECUTIVE IS THE 
MILESTONE DECISION AUTHORITY. 
Effective on February 1, 2018, and immediately after the 
coming into effect of the amendment made by section 901(b) of 
the National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2340), subsection (b)(6) of section 133b
H. R. 2810—230 
of title 10, United States Code, as added by such section 901(b), 
is amended by striking ‘‘supervisory authority’’ and inserting 
‘‘advisory authority’’. 
SEC. 903. EXECUTIVE SCHEDULE MATTERS RELATING TO UNDER SEC-
RETARY 
OF 
DEFENSE 
FOR 
ACQUISITION 
AND 
SUSTAINMENT. 
(a) REPEAL OF PENDING EXECUTIVE SCHEDULE AMENDMENT.— 
Section 901(h) of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328; 130 Stat. 2342; 5 U.S.C. 5313 
note) is amended— 
(1) by striking ‘‘new items’’ and inserting ‘‘new item’’; and 
(2) by striking the item relating to the Under Secretary 
of Defense for Acquisition and Sustainment. 
(b) EXECUTIVE SCHEDULE LEVEL III.—Effective on February 
1, 2018, section 5314 of title 5, United States Code, is amended 
by inserting before the item relating to the Under Secretary of 
Defense for Policy the following new item: 
‘‘Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment.’’. 
SEC. 904. CONSISTENT PERIOD OF RELIEF FROM ACTIVE DUTY AS 
A COMMISSIONED OFFICER OF A REGULAR COMPONENT 
OF THE ARMED FORCES FOR APPOINTMENT TO UNDER 
SECRETARY OF DEFENSE POSITIONS. 
Chapter 4 of title 10, United States Code, is amended— 
(1) in section 135(a), by adding at the end the following 
new sentence: ‘‘A person may not be appointed as Under Sec-
retary within seven years after relief from active duty as a 
commissioned officer of a regular component of the armed 
forces.’’; 
(2) in section 136(a), by adding at the end the following 
new sentence: ‘‘A person may not be appointed as Under Sec-
retary within seven years after relief from active duty as a 
commissioned officer of a regular component of the armed 
forces.’’; and 
(3) in section 137(a), by adding at the end the following 
new sentence: ‘‘A person may not be appointed as Under Sec-
retary within seven years after relief from active duty as a 
commissioned officer of a regular component of the armed 
forces.’’. 
SEC. 905. QUALIFICATIONS FOR APPOINTMENT AND ADDITIONAL 
DUTIES AND POWERS OF CERTAIN OFFICIALS WITHIN THE 
OFFICE OF THE UNDER SECRETARY OF DEFENSE (COMP-
TROLLER). 
(a) UNDER SECRETARY OF DEFENSE (COMPTROLLER).— 
(1) QUALIFICATION
FOR
APPOINTMENT.—Section 135(a) of 
title 10, United States Code, as amended by section 904, is 
further amended— 
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(2) The Under Secretary of Defense (Comptroller) shall be 
appointed from among persons who have significant budget, finan-
cial management, or audit experience in complex organizations.’’. 
(2) DUTIES AND POWERS.—Section 135 of title 10, United 
States Code, is further amended—
H. R. 2810—231 
(A) by redesignating subsections (d) and (e) as sub-
sections (e) and (f), respectively; and 
(B) by inserting after subsection (c) the following new 
subsection (d): 
‘‘(d) In addition to any duties under subsection (c), the Under 
Secretary of Defense (Comptroller) shall, subject to the authority, 
direction, and control of the Secretary of Defense, do the following: 
‘‘(1) Provide guidance and instruction on annual perform-
ance plans and evaluations to the following: 
‘‘(A) The Assistant Secretaries of the military depart-
ments for financial management. 
‘‘(B) Any other official of an agency, organization, or 
element of the Department of Defense with responsibility 
for financial management. 
‘‘(2) Give directions to the military departments, Defense 
Agencies, and other organizations and elements of the Depart-
ment of Defense regarding their financial statements and the 
audit and audit readiness of such financial statements.’’. 
(b) QUALIFICATION FOR APPOINTMENT AS DEPUTY CHIEF FINAN-
CIAL OFFICER.—The Deputy Chief Financial Officer of the Depart-
ment of Defense shall be appointed from among persons who have 
significant budget, financial management, or audit experience in 
complex organizations. 
(c) APPLICABILITY.—The appointment qualifications imposed by 
the amendments made by subsection (a)(1) and the appointment 
qualifications imposed by subsection (b) shall apply with respect 
to appointments as Under Secretary of Defense (Comptroller) and 
Deputy Chief Financial Officer of the Department of Defense that 
are made on or after the date of the enactment of this Act. 
SEC. 906. REDESIGNATION OF PRINCIPAL DEPUTY UNDER SECRE-
TARIES OF DEFENSE AS DEPUTY UNDER SECRETARIES OF 
DEFENSE AND RELATED MATTERS. 
(a) REDESIGNATION.—Section 137a of title 10, United States 
Code, is amended by striking ‘‘Principal’’ each place it appears. 
(b) INCREASE IN AUTHORIZED NUMBER.—Section 137a(a)(1) of 
title 10, United States Code, is amended by striking ‘‘five’’ and 
inserting ‘‘six’’. 
(c) REPLACEMENT OF ATL POSITION WITH TWO POSITIONS IN 
CONNECTION WITH OSD REFORM.—Effective on February 1, 2018, 
section 137a(c) of title 10, United States Code, is amended— 
(1) by redesignating paragraphs (2) through (5) as para-
graphs (3) through (6), respectively; and 
(2) by striking paragraph (1) and inserting the following 
new paragraphs: 
‘‘(1) One of the Deputy Under Secretaries is the Deputy Under 
Secretary of Defense for Research and Engineering. 
‘‘(2) One of the Deputy Under Secretaries is the Deputy Under 
Secretary of Defense for Acquisition and Sustainment.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) OSD.—Paragraph (6) of section 131(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(6) The Deputy Under Secretaries of Defense.’’. 
(2) PRECEDENCE.—Section 138(d) of title 10, United States 
Code, is amended by striking ‘‘Principal’’. 
(e) EXECUTIVE SCHEDULE LEVEL IV.—Section 5315 of title 5, 
United States Code, is amended—
H. R. 2810—232 
(1) by striking ‘‘Principal’’ in the items relating to the 
Principal Deputy Under Secretary of Defense for Policy, the 
Principal Deputy Under Secretary of Defense for Personnel 
and Readiness, the Principal Deputy Under Secretary of 
Defense (Comptroller), and the Principal Deputy Under Sec-
retary of Defense for Intelligence; and 
(2) by inserting before the item relating to the Deputy 
Under Secretary of Defense for Policy, as amended by para-
graph (1), the following new items: 
‘‘Deputy Under Secretary of Defense for Research and 
Engineering. 
‘‘Deputy Under Secretary of Defense for Acquisition and 
Sustainment.’’. 
(f) CLERICAL AMENDMENTS.— 
(1) HEADING AMENDMENT.—The heading of section 137a 
of title 10, United States Code, is amended to read as follows: 
‘‘§ 137a. Deputy Under Secretaries of Defense’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 4 of title 10, United States Code, is 
amended by striking the item relating to section 137a and 
inserting the following new item: 
‘‘137a. Deputy Under Secretaries of Defense.’’. 
SEC. 907. REDUCTION OF NUMBER AND ELIMINATION OF SPECIFIC 
DESIGNATIONS OF ASSISTANT SECRETARIES OF DEFENSE. 
(a) REDUCTION OF AUTHORIZED NUMBER.—Section 138(a)(1) of 
title 10, United States Code, is amended by striking ‘‘14’’ and 
inserting ‘‘13’’. 
(b) ELIMINATION OF CERTAIN SPECIFIC DESIGNATIONS.—Section 
138(b) of title 10, United States Code, is amended— 
(1) by striking paragraphs (2) and (3); and 
(2) by redesignating paragraphs (4), (5), and (6) as para-
graphs (2), (3), and (4), respectively. 
SEC. 908. LIMITATION ON MAXIMUM NUMBER OF DEPUTY ASSISTANT 
SECRETARIES OF DEFENSE. 
The maximum number of Deputy Assistant Secretaries of 
Defense after the date of the enactment of this Act may not exceed 
48. 
SEC. 909. APPOINTMENT AND RESPONSIBILITIES OF CHIEF INFORMA-
TION OFFICER OF THE DEPARTMENT OF DEFENSE. 
(a) APPOINTMENT
METHOD
AND
QUALIFICATIONS.—Section 
142(a) of title 10, United States Code, is amended by inserting 
before the period at the end the following: ‘‘, who shall be appointed 
by the President, by and with the advice and consent of the Senate, 
from among civilians who are qualified to serve as such officer’’. 
(b) CLARIFICATION
OF
CERTAIN
RESPONSIBILITIES.—Section 
142(b)(1)(I) of title 10, United States Code, is amended by striking 
‘‘the networking and cyber defense architecture’’ and inserting ‘‘the 
information technology, networking, information assurance, cyberse-
curity, and cyber capability architectures’’. 
(c) ADDITIONAL RESPONSIBILITIES RELATED TO BUDGETS AND 
STANDARDS.—Section 142(b) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraph (2) as paragraph (4); and
H. R. 2810—233 
(2) by inserting after paragraph (1) the following new para-
graphs: 
‘‘(2)(A) The Secretary of Defense, acting through the Under 
Secretary of Defense (Comptroller), shall require the Secretaries 
of the military departments and the heads of the Defense Agencies 
with responsibilities associated with any activity specified in para-
graph (1) to transmit the proposed budget for such activities for 
a fiscal year and for the period covered by the future-years defense 
program submitted to Congress under section 221 of this title 
for that fiscal year to the Chief Information Officer for review 
under subparagraph (B) before submitting the proposed budget 
to the Under Secretary of Defense (Comptroller). 
‘‘(B) The Chief Information Officer shall review each proposed 
budget transmitted under subparagraph (A) and, not later than 
January 31 of the year preceding the fiscal year for which the 
budget is proposed, shall submit to the Secretary of Defense a 
report containing the comments of the Chief Information Officer 
with respect to all such proposed budgets, together with the certifi-
cation of the Chief Information Officer regarding whether each 
proposed budget is adequate. 
‘‘(C) Not later than March 31 of each year, the Secretary of 
Defense shall submit to Congress a report specifying each proposed 
budget contained in the most-recent report submitted under 
subparagraph (B) that the Chief Information Officer did not certify 
to be adequate. The report of the Secretary shall include the fol-
lowing matters: 
‘‘(i) A discussion of the actions that the Secretary proposes 
to take, together with any recommended legislation that the 
Secretary considers appropriate, to address the inadequacy of 
the proposed budgets specified in the report. 
‘‘(ii) Any additional comments that the Secretary considers 
appropriate regarding the inadequacy of the proposed budgets. 
‘‘(3)(A) The Secretary of a military department or head of a 
Defense Agency may not develop or procure information technology 
(as defined in section 11101 of title 40) that does not fully comply 
with such standards as the Chief Information Officer may establish. 
‘‘(B) The Chief Information Officer shall implement and enforce 
a process for— 
‘‘(i) developing, adopting, or publishing standards for 
information technology, networking, or cyber capabilities to 
which any military department or defense agency would need 
to adhere in order to run such capabilities on defense networks; 
and 
‘‘(ii) certifying on a regular and ongoing basis that any 
capabilities being developed or procured meets such standards 
as have been published by the Department at the time of 
certification. 
‘‘(C) The Chief Information Officer shall identify gaps in stand-
ards and mitigation plans for operating in the absence of acceptable 
standards.’’. 
(d) DIRECTION
AND PRECEDENCE.—Section 142 of title 10, 
United States Code, is amended by adding at the end the following 
new subsections: 
‘‘(c) The Chief Information Officer of the Department of Defense 
shall report directly to the Secretary of Defense in the performance 
of duties under this section.
H. R. 2810—234 
‘‘(d) The Chief Information Officer of the Department of Defense 
takes precedence in the Department of Defense with the officials 
serving in positions specified in section 131(b)(4) of this title. The 
officials serving in positions specified in such section and the Chief 
Information Officer take precedence among themselves in the order 
prescribed by the Secretary of Defense.’’. 
(e) ALTERNATIVE PROPOSAL.—Not later than March 1, 2018, 
the Secretary of Defense shall submit to the congressional defense 
committees a proposal for such alternatives or modifications to 
the realignment of responsibilities of the Chief Information Officer 
of the Department of Defense required by the amendments made 
by subsection (a) as the Secretary considers appropriate, together 
with an implementation plan for such proposal. The proposal may 
not be carried out unless approved by statute. 
(f) SERVICE OF INCUMBENT WITHOUT FURTHER APPOINTMENT.— 
The individual serving in the position of Chief Information Officer 
of the Department of Defense as of January 1, 2019, may continue 
to serve in such position commencing as of that date without further 
appointment pursuant to section 142 of title 10, United States 
Code, as amended by this section. 
(g) EFFECTIVE DATE OF AMENDMENTS.—The amendments made 
by this section shall take effect on January 1, 2019. 
SEC. 910. CHIEF MANAGEMENT OFFICER OF THE DEPARTMENT OF 
DEFENSE. 
(a) CHIEF MANAGEMENT OFFICER.— 
(1) IN GENERAL.—Effective February 1, 2018, section 132a 
of title 10, United States Code, is amended to read as follows: 
‘‘§ 132a. Chief Management Officer 
‘‘(a) APPOINTMENT AND QUALIFICATIONS.—(1) There is a Chief 
Management Officer of the Department of Defense, appointed from 
civilian life by the President, by and with the advice and consent 
of the Senate. 
‘‘(2) The Chief Management Officer shall be appointed from 
among persons who have an extensive management or business 
background and experience with managing large or complex 
organizations. A person may not be appointed as Chief Management 
Officer within seven years after relief from active duty as a commis-
sioned officer of a regular component of an armed force. 
‘‘(b) RESPONSIBILITIES.—Subject to the authority, direction, and 
control of the Secretary of Defense and the Deputy Secretary of 
Defense, the Chief Management Officer shall perform such duties 
and exercise such powers as the Secretary or the Deputy Secretary 
may prescribe, including the following: 
‘‘(1) Serving as the chief management officer of the Depart-
ment of Defense with the mission of managing enterprise busi-
ness operations and shared services of the Department of 
Defense. 
‘‘(2) Serving as the principal advisor to the Secretary and 
the Deputy Secretary on establishing policies for, and directing, 
all enterprise business operations of the Department, including 
planning and processes, business transformation, performance 
measurement and management, and business information tech-
nology management and improvement activities and programs, 
including the allocation of resources for enterprise business
H. R. 2810—235 
operations and unifying business management efforts across 
the Department. 
‘‘(3) Exercising authority, direction, and control over the 
Defense Agencies and Department of Defense Field Activities 
providing shared business services for the Department that 
are designated by the Secretary or the Deputy Secretary for 
purposes of this paragraph. 
‘‘(4) As of January 1, 2019— 
‘‘(A) serving as the Chief Information Officer of the 
Department for purposes of section 2222 of this title; 
‘‘(B) administering the responsibilities and duties speci-
fied in sections 11315 and 11319 of title 40, section 
3506(a)(2) of title 44, and section 2223(a) of this title for 
business systems and management; and 
‘‘(C) Exercising any responsibilities, duties, and powers 
relating to business systems or management that are exer-
cisable by a chief information officer for the Department, 
other than those responsibilities, duties, and powers of 
a chief information officer that are vested in the Chief 
Information Officer of the Department of Defense by section 
142 of this title. 
‘‘(5) Serving as the official with principal responsibility 
in the Department for providing for the availability of common, 
usable, Defense-wide data sets with applications such as 
improving acquisition outcomes and personnel management. 
‘‘(6) Authority to direct the Secretaries of the military 
departments and the heads of all other elements of the Depart-
ment with regard to matters for which the Chief Management 
Officer has responsibility under this section. 
‘‘(c) PRECEDENCE.—The Chief Management Officer takes prece-
dence in the Department of Defense after the Secretary of Defense 
and the Deputy Secretary of Defense. 
‘‘(d) ENTERPRISE BUSINESS OPERATION DEFINED.—In this sec-
tion, the term ‘enterprise business operations’ means those activities 
that constitute the cross-cutting business operations used by mul-
tiple components of the Department of Defense, but not those activi-
ties that are directly tied to a single military department or Depart-
ment of Defense component. The term includes business-support 
functions designated by the Secretary of Defense or the Deputy 
Secretary of Defense for purposes of this section, such as aspects 
of financial management, healthcare, acquisition and procurement, 
supply chain and logistics, certain information technology, real prop-
erty, and human resources operations.’’. 
(2) CLERICAL AMENDMENT.—Effective February 1, 2018, the 
table of sections at the beginning of chapter 4 of title 10, 
United States Code, is amended by striking the item relating 
to section 132a and inserting the following new item: 
‘‘132a. Chief Management Officer.’’. 
(b) CONFORMING REPEAL
OF PRIOR AUTHORITIES
ON CHIEF 
MANAGEMENT OFFICER.— 
(1) IN GENERAL.—Effective on January 31, 2018, subsection 
(c) of section 901 of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2341; 
10 U.S.C. 131 note) is repealed, and the amendments to be 
made by paragraph (4) of that subsection shall not be made.
H. R. 2810—236 
(2) FURTHER CONFORMING AMENDMENTS.—Effective on Feb-
ruary 1, 2018, section 132 of title 10, United States Code, 
is amended— 
(A) by striking subsection (c); and 
(B) by redesignating subsection (d) as subsection (c). 
(c) CONFORMING AMENDMENTS ON PRECEDENCE IN DOD.—Effec-
tive on February 1, 2018, and immediately after the coming into 
effect of the amendments made by section 901 of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114– 
328; 130 Stat. 2339; 10 U.S.C. 131 note)— 
(1) section 131(b) of title 10, United States Code, as 
amended by section 906(d)(1) of this Act, is further amended— 
(A) by redesignating paragraphs (2) through (9) as 
paragraphs (3) through (10), respectively; and 
(B) by inserting after paragraph (1) the following new 
paragraph (2): 
‘‘(2) The Chief Management Officer of the Department of 
Defense.’’; 
(2) section 133a(c) of such title is amended— 
(A) in paragraph (1), by striking ‘‘and the Deputy Sec-
retary of Defense’’ and inserting ‘‘, the Deputy Secretary 
of Defense, and the Chief Management Officer of the 
Department of Defense’’; and 
(B) in paragraph (2), by inserting ‘‘the Chief Manage-
ment Officer,’’ after ‘‘the Deputy Secretary,’’; and 
(3) section 133b(c) of such title is amended— 
(A) in paragraph (1), by inserting ‘‘the Chief Manage-
ment Officer of the Department of Defense,’’ after ‘‘the 
Deputy Secretary of Defense,’’; and 
(B) in paragraph (2), by inserting ‘‘the Chief Manage-
ment Officer,’’ after ‘‘the Deputy Secretary,’’. 
(d) EXECUTIVE SCHEDULE LEVEL II.—Effective on February 1, 
2018, and immediately after the coming into effect of the amend-
ment made by section 901(h) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2342; 
5 U.S.C. 5313 note), section 5313 of title 5, United States Code, 
is amended by inserting before the item relating to the Under 
Secretary of Defense for Research and Engineering the following 
new item: 
‘‘Chief Management Officer of the Department of Defense.’’. 
(e) SERVICE
OF
INCUMBENT
DEPUTY
CHIEF
MANAGEMENT 
OFFICER AS CHIEF MANAGEMENT OFFICER UPON COMMENCEMENT 
OF LATTER POSITION WITHOUT FURTHER APPOINTMENT.—The indi-
vidual serving in the position of Deputy Chief Management Officer 
of the Department of Defense as of February 1, 2018, may continue 
to serve as Chief Management Officer of the Department of Defense 
under section 132a of title 10, United States Code (as amended 
by subsection (a)), commencing as of that date without further 
appointment pursuant to such section 132a. 
(f) DEFENSE
AGENCIES
AND
FIELD
ACTIVITIES
PROVIDING 
SHARED BUSINESS SERVICES.— 
(1) INITIAL
REPORTING
REQUIREMENT.—Not later than 
January 15, 2018, the Secretary of Defense shall submit to 
the congressional defense committees a report specifying each 
Defense Agency and Department of Defense Field Activity pro-
viding shared business services for the Department of Defense 
that is to be designated by the Secretary of Defense or the
H. R. 2810—237 
Deputy Secretary of Defense for purposes of subsection (b)(3) 
of section 132a of title 10, United States Code (as amended 
by subsection (a)), as of the coming into effect of such section 
132a. 
(2) NOTICE TO CONGRESS ON TRANSFER OF OVERSIGHT.— 
Upon the transfer to the Chief Management Officer of the 
Department of Defense of responsibility for oversight of shared 
business services of a Defense Agency or Department of Defense 
Field Activity specified in the report required by paragraph 
(1), the Secretary of Defense shall submit to the congressional 
defense committees a notice of the transfer, including the 
Defense Agency or Field Activity subject to the transfer and 
a description of the nature and scope of the responsibility 
for oversight transferred. 
Subtitle B—Data Management and 
Analytics 
SEC. 911. POLICY ON TREATMENT OF DEFENSE BUSINESS SYSTEM 
DATA RELATED TO BUSINESS OPERATIONS AND MANAGE-
MENT. 
(a) ESTABLISHMENT OF POLICY.—Not later than one year after 
the date of the enactment of this Act, the Secretary of Defense 
shall establish a data policy for the Department of Defense that 
mandates that any data contained in a defense business system 
related to business operations and management is an asset of 
the Department of Defense. 
(b) AVAILABILITY.—As part of the policy required by subsection 
(a), the Secretary of Defense shall ensure that, except as otherwise 
provided by law or regulation, data described in such subsection 
shall be made readily available to members of the Office of the 
Secretary of Defense, the Joint Staff, the military departments, 
the combatant commands, the Defense Agencies, the Department 
of Defense Field Activities, and all other offices, agencies, activities, 
and commands of the Department of Defense, as applicable. 
SEC. 912. TRANSPARENCY OF DEFENSE MANAGEMENT DATA. 
(a) COMMON ENTERPRISE DATA.— 
(1) IN GENERAL.—Section 2222(e) of title 10, United States 
Code, is amended by adding at the end the following new 
paragraphs: 
‘‘(5) COMMON
ENTERPRISE
DATA.—The defense business 
enterprise shall include enterprise data that may be automati-
cally extracted from the relevant systems to facilitate Depart-
ment of Defense-wide analysis and management of its business 
operations. 
‘‘(6) ROLES AND RESPONSIBILITIES.— 
‘‘(A) The Chief Management Officer of the Department 
of Defense shall have primary decision-making authority 
with respect to the development of common enterprise data. 
In consultation with the Defense Business Council, the 
Chief Management Officer shall— 
‘‘(i) develop an associated data governance process; 
and 
‘‘(ii) oversee the preparation, extraction, and provi-
sion of data across the defense business enterprise.
H. R. 2810—238 
‘‘(B) The Chief Management Officer and the Under 
Secretary of Defense (Comptroller) shall— 
‘‘(i) in consultation with the Defense Business 
Council, document and maintain any common enter-
prise data for their respective areas of authority; 
‘‘(ii) participate in any related data governance 
process; 
‘‘(iii) extract data from defense business systems 
as needed to support priority activities and analyses; 
‘‘(iv) when appropriate, ensure the source data is 
the same as that used to produce the financial state-
ments subject to annual audit; 
‘‘(v) in consultation with the Defense Business 
Council, provide access, except as otherwise provided 
by law or regulation, to such data to the Office of 
the Secretary of Defense, the Joint Staff, the military 
departments, the combatant commands, the Defense 
Agencies, the Department of Defense Field Activities, 
and all other offices, agencies, activities, and com-
mands of the Department of Defense; and 
‘‘(vi) ensure consistency of the common enterprise 
data maintained by their respective organizations. 
‘‘(C) The Director of Cost Assessment and Program 
Evaluation shall have access to data for the purpose of 
executing missions as designated by the Secretary of 
Defense. 
‘‘(D) The Secretary of Defense, the Chairman of the 
Joint Chiefs of Staff, the Secretaries of the military depart-
ments, commanders of combatant commands, the heads 
of the Defense Agencies, the heads of the Department 
of Defense Field Activities, and the heads of all other 
offices, agencies, activities, and commands of the Depart-
ment of Defense shall provide access to the relevant system 
of such department, combatant command, Defense Agency, 
Defense Field Activity, or office, agency, activity, and com-
mand organization, as applicable, and data extracted from 
such system, for purposes of automatically populating data 
sets coded with common enterprise data.’’. 
(2) DEFINITIONS.—Section 2222(i) of title 10, United States 
Code, is amended by adding at the end the following new 
paragraphs: 
‘‘(10) COMMON ENTERPRISE DATA.—The term ‘common enter-
prise data’ means business operations or management-related 
data, generally from defense business systems, in a usable 
format that is automatically accessible by authorized personnel 
and organizations. 
‘‘(11) DATA GOVERNANCE PROCESS.—The term ‘data govern-
ance process’ means a system to manage the timely Department 
of Defense-wide sharing of data described under subsection 
(a)(6)(A).’’. 
(b) DUTIES
OF
UNDER
SECRETARY
OF
DEFENSE
(COMP-
TROLLER).—Section 135(b) of title 10, United States Code, is 
amended in the second sentence by inserting after ‘‘shall perform’’ 
the following: ‘‘the duties assigned to the Under Secretary in section 
2222 of this title and’’.
H. R. 2810—239 
(c) DUTIES OF DIRECTOR OF COST ASSESSMENT AND PROGRAM 
EVALUATION.—Section 139a(d) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(9) Performing the duties assigned to the Director in sec-
tion 2222 of this title.’’. 
(d) IMPLEMENTATION PLAN FOR COMMON ENTERPRISE DATA.— 
(1) PLAN REQUIRED.—Not later than one year after the 
date of the enactment of this Act, the Deputy Secretary of 
Defense, acting through the Chief Management Officer of the 
Department of Defense, shall develop a plan to implement 
the amendments made by subsection (a). 
(2) ELEMENTS.—At a minimum, the implementation plan 
required by paragraph (1) shall include the following elements: 
(A) The major tasks required to implement the require-
ments imposed by the amendments made by subsection 
(a) and the recommended time frames for each task. 
(B) The estimated resources required to complete each 
major task identified pursuant to subparagraph (A). 
(C) Any challenges associated with each major task 
identified pursuant to subparagraph (A) and related steps 
to mitigate such challenge. 
(D) A description of how data security issues will be 
appropriately addressed in the implementation of such 
requirements. 
(E) A review of the curriculum taught at the National 
Defense University, the Defense Acquisition University, 
professional military educational institutions, and appro-
priate private sector academic institutions to determine 
the extent to which the curricula include appropriate 
courses on data management, data analytics and other 
evaluation-related methods. 
(3) ROLE
OF
UNDER
SECRETARY
OF
DEFENSE
(COMP-
TROLLER).—The Under Secretary of Defense (Comptroller) shall 
ensure that the implementation plan required by paragraph 
(1) does not conflict with the financial statement audit priorities 
and timeline of the Department of Defense. 
(4) SUBMISSION
TO
CONGRESS.—Upon completion of the 
implementation plan required by paragraph (1), the Chief 
Management Officer shall submit the plan to the congressional 
defense committees. 
(e) APPLICATION OF NEW AUTHORITIES REQUIRED.— 
(1) DATA ANALYTICS CAPABILITY REQUIRED.—Not later than 
September 30, 2020, the Chief Management Officer of the 
Department of Defense shall establish and maintain within 
the Department of Defense a data analytics capability for pur-
poses of supporting enhanced oversight and management of 
the Defense Agencies and Department of Defense Field Activi-
ties. 
(2) ELEMENTS.—The data analytics capability shall permit 
the following: 
(A) The maintenance on a continuing basis of an 
accurate tabulation of the amounts expended by the 
Defense Agencies and Department of Defense Field Activi-
ties on Government and contractor personnel. 
(B) The maintenance on a continuing basis of an 
accurate number of the personnel currently supporting the
H. R. 2810—240 
Defense Agencies and Department of Defense Field Activi-
ties, including the following: 
(i) Members of the regular components of the 
Armed Forces. 
(ii) Members of the reserve components of the 
Armed Forces. 
(iii) Civilian employees of the Department of 
Defense. 
(iv) Detailees, whether from another organization 
or element of the Department or from another depart-
ment or agency of the Federal Government. 
(C) The tracking of costs for employing contract per-
sonnel, including federally funded research and develop-
ment centers. 
(D) The maintenance on a continuing basis of the fol-
lowing: 
(i) An identification of the functions being per-
formed by each Defense Agency and Department of 
Defense Field Activity. 
(ii) An accurate tabulation of the amounts being 
expended by each Defense Agency and Department 
of Defense Field Activity on its functions. 
(3) REPORTING REQUIREMENTS.— 
(A) INTERIM REPORT.—Not later than one year after 
the date of the enactment of this Act, the Chief Manage-
ment Officer of the Department of Defense shall submit 
to the congressional defense committees a report on 
progress in establishing the data analytics capability. The 
report shall include the following: 
(i) A description and assessment of the efforts of 
the Chief Management Officer through the date of 
the report to establish the data analytics capability. 
(ii) A description of current gaps in the data 
required to establish the data analytics capability, and 
a description of the efforts to be undertaken to elimi-
nate such gaps. 
(B) FINAL REPORT.—Not later than December 31, 2020, 
the Chief Management Officer shall submit to the congres-
sional defense committees a report on the data analytics 
capability as established pursuant to this section. 
(f) ADDITIONAL PILOT PROGRAMS REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense shall carry out 
pilot programs to develop data integration strategies for the 
Department of Defense to address high-priority management 
challenges of the Department. 
(2) ELEMENTS.—The pilot programs carried out under the 
authority of this subsection shall involve data integration 
strategies to address challenges of the Department with respect 
to the following: 
(A) The budget of the Department. 
(B) Logistics. 
(C) Personnel security and insider threats. 
(D) At least two other high-priority challenges of the 
Department identified by the Secretary for purposes of 
this subsection. 
(3) REPORT ON PILOT PROGRAMS.—Not later than one year 
after the date of the enactment of this Act, the Secretary
H. R. 2810—241 
of Defense shall submit to the congressional defense committees 
a report describing the pilot programs to be carried out under 
this section, including the challenge of the Department to be 
addressed by the pilot program and the manner in which the 
data integration strategy under the pilot program will address 
the challenge. If any proposed pilot program requires legislative 
action for the waiver or modification of a statutory requirement 
that otherwise prevents or impedes the implementation of the 
pilot program, the Secretary shall include in the report a rec-
ommendation for legislative action to waive or modify the statu-
tory requirement. 
SEC. 913. ESTABLISHMENT OF SET OF ACTIVITIES THAT USE DATA 
ANALYSIS, MEASUREMENT, AND OTHER EVALUATION- 
RELATED METHODS TO IMPROVE ACQUISITION PROGRAM 
OUTCOMES. 
(a) ESTABLISHMENT REQUIRED.—Not later than one year after 
the date of the enactment of this Act, the Secretary of Defense 
shall establish a set of activities that use data analysis, measure-
ment, and other evaluation-related methods to improve the acquisi-
tion outcomes of the Department of Defense and enhance organiza-
tional learning. 
(b) TYPES
OF ACTIVITIES.—The set of activities established 
under subsection (a) may include any or all of the following: — 
(1) Establishment of data analytics capabilities and 
organizations within an Armed Force. 
(2) Development of capabilities in Department of Defense 
laboratories, test centers, and federally funded research and 
development centers to provide technical support for data ana-
lytics activities that support acquisition program management 
and business process re-engineering activities. 
(3) Increased use of existing analytical capabilities avail-
able to acquisition programs and offices to support improved 
acquisition outcomes. 
(4) Funding of intramural and extramural research and 
development activities to develop and implement data analytics 
capabilities in support of improved acquisition outcomes. 
(5) Publication, to the maximum extent practicable, and 
in a manner that protects classified and proprietary informa-
tion, of data collected by the Department of Defense related 
to acquisition program costs and activities for access and anal-
yses by the general public or Department research and edu-
cation organizations. 
(6) Promulgation by 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, in coordination 
with the Deputy Secretary of Defense, the Under Secretary 
of Defense for Research and Engineering, and the Under Sec-
retary for Acquisition and Sustainment, of a consistent policy 
as to the role of data analytics in establishing budgets and 
making milestone decisions for major defense acquisition pro-
grams. 
(7) Continual assessment, in consultation with the private 
sector, of the efficiency of current data collection and analyses 
processes, so as to minimize the requirement for collection 
and delivery of data by, from, and to Government organizations.
H. R. 2810—242 
(8) Promulgation of guidance to acquisition programs and 
activities on the efficient use, quality, and sharing of enterprise 
data between programs and organizations to improve acquisi-
tion program analytics and outcomes. 
(9) Establishment of focused research and educational 
activities at the Defense Acquisition University, and appro-
priate private sector academic institutions, to support enhanced 
use of data management, data analytics, and other evaluation- 
related methods to improve acquisition outcomes. 
Subtitle C—Organization of Other Depart-
ment of Defense Offices and Elements 
SEC. 921. QUALIFICATIONS FOR APPOINTMENT OF ASSISTANT SECRE-
TARIES OF THE MILITARY DEPARTMENTS FOR FINANCIAL 
MANAGEMENT. 
(a) ASSISTANT SECRETARY OF THE ARMY.—Section 3016(b)(4) 
of title 10, United States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(2) by striking ‘‘The Assistant Secretary shall have as his 
principal responsibility’’ and inserting the following: 
‘‘(C) The principal responsibility of the Assistant Secretary shall 
be’’; and 
(3) by inserting after subparagraph (A), as designated by 
paragraph (1), the following new subparagraph (B): 
‘‘(B) The Assistant Secretary shall be appointed from among 
persons who have significant budget, financial management, or 
audit experience in complex organizations.’’. 
(b) ASSISTANT SECRETARY OF THE NAVY.—Section 5016(b)(3) 
of title 10, United States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘The Assistant Secretary shall have as his 
principal responsibility’’ and inserting the following: 
‘‘(C) The principal responsibility of the Assistant Secretary shall 
be’’; and 
(3) by inserting after subparagraph (A), as designated by 
paragraph (1), the following new subparagraph (B): 
‘‘(B) The Assistant Secretary shall be appointed from among 
persons who have significant budget, financial management, or 
audit experience in complex organizations.’’. 
(c) ASSISTANT
SECRETARY
OF
THE
AIR
FORCE.—Section 
8016(b)(3) of title 10, United States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘The Assistant Secretary shall have as his 
principal responsibility’’ and inserting the following: 
‘‘(C) The principal responsibility of the Assistant Secretary shall 
be’’; and 
(3) by inserting after subparagraph (A), as designated by 
paragraph (1), the following new subparagraph (B): 
‘‘(B) The Assistant Secretary shall be appointed from among 
persons who have significant budget, financial management, or 
audit experience in complex organizations.’’. 
(d) APPLICABILITY.—The appointment qualifications imposed by 
the amendments made by this section shall apply with respect
H. R. 2810—243 
to an appointment as an Assistant Secretary of a military depart-
ment for financial management that is made on or after the date 
of the enactment of this Act. 
SEC. 922. MANNER OF CARRYING OUT REDUCTIONS IN MAJOR DEPART-
MENT OF DEFENSE HEADQUARTERS ACTIVITIES PURSU-
ANT TO HEADQUARTERS REDUCTION PLAN. 
Section 346(b) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 129 Stat. 796; 10 U.S.C. 
111 note) is amended by adding at the end the following new 
paragraph: 
‘‘(5) MANNER OF CARRYING OUT REDUCTIONS.— 
‘‘(A) IN
GENERAL.—The Secretary of Defense shall 
implement the headquarters reduction plan referred to in 
paragraph (1), as modified pursuant to that paragraph, 
so that reductions in major Department of Defense head-
quarters activities pursuant to the plan are carried out 
only after consideration of— 
‘‘(i) the current manpower levels of major Depart-
ment of Defense headquarters activities; 
‘‘(ii) the historic manpower levels of major Depart-
ment of Defense headquarters activities; 
‘‘(iii) the mission requirements of major Depart-
ment of Defense headquarters activities; and 
‘‘(iv) the anticipated staffing needs of major 
Department of Defense headquarters activities nec-
essary to meet national defense objectives. 
‘‘(B) CONFORMING MODIFICATION OF PLAN FOR ACHIEVE-
MENT OF COST SAVINGS.—The Secretary of Defense shall 
modify the plan for achievement of cost savings required 
by subsection (a) to take into account the requirement 
specified in subparagraph (A).’’. 
SEC. 923. CERTIFICATIONS ON COST SAVINGS ACHIEVED BY REDUC-
TIONS IN MAJOR DEPARTMENT OF DEFENSE HEAD-
QUARTERS ACTIVITIES. 
Section 346(b) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 129 Stat. 796 10 U.S.C. 
111 note), as amended by section 922, is further amended by adding 
at the end the following new paragraph: 
‘‘(6) CERTIFICATIONS ON COST SAVINGS ACHIEVED.—Not later 
than 120 days after the date of the enactment of this paragraph, 
and not later than 60 days after the end of each of fiscal 
years 2018 through 2020, the Director of Cost Assessment 
and Program Evaluation shall certify to the Secretary of 
Defense, and to the congressional defense committees, the fol-
lowing: 
‘‘(A) The validity of the cost savings achieved for each 
major Department of Defense headquarters activity during 
the previous fiscal year, including the cost of personnel 
detailed by another Department entity to the headquarters 
activity. 
‘‘(B) Whether the cost savings achieved for each major 
Department of Defense headquarters activity during that 
fiscal year met the savings objective for the headquarters 
activity for that fiscal year, as established pursuant to 
paragraph (1).’’.
H. R. 2810—244 
SEC. 924. CORROSION CONTROL AND PREVENTION EXECUTIVES MAT-
TERS. 
(a) SCOPE
AND LEVEL
OF POSITIONS.—Section 903(a) of the 
Duncan Hunter National Defense Authorization Act for Fiscal Year 
2009 (Public Law 110–417; 10 U.S.C. 2228 note) is amended— 
(1) by striking ‘‘shall be the senior official’’ and inserting 
‘‘shall be a senior official’’; and 
(2) by adding at the end the following new sentence: ‘‘Each 
individual so designated shall be a senior civilian employee 
of the military department concerned in pay grade GS–15 or 
higher.’’. 
(b) QUALIFICATIONS.—Section 903 of the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 2009 (Public 
Law 110–417; 10 U.S.C. 2228 note) is further amended— 
(1) by redesignating subsection (b) as subsection (c); and 
(2) by inserting after subsection (a) the following new sub-
section (b): 
‘‘(b) QUALIFICATIONS.—Any individual designated as a corrosion 
control and prevention executive of a military department pursuant 
to subsection (a) shall— 
‘‘(1) have a working knowledge of corrosion prevention and 
control; 
‘‘(2) have strong program management and communication 
skills; and 
‘‘(3) understand the acquisition, research, development, 
test, and evaluation, and sustainment policies and procedures 
of the military department, including for the sustainment of 
infrastructure.’’. 
SEC. 925. BACKGROUND AND SECURITY INVESTIGATIONS FOR DEPART-
MENT OF DEFENSE PERSONNEL. 
(a) 
TRANSITION
TO
DISCHARGE
BY
DEFENSE
SECURITY 
SERVICE.— 
(1) SECRETARIAL AUTHORITY.—The Secretary of Defense has 
the authority to conduct security, suitability, and credentialing 
background investigations for Department of Defense personnel. 
In carrying out such authority, the Secretary may use such 
authority, or may delegate such authority to another entity. 
(2) PHASED TRANSITION.—As part of providing for the con-
duct of background investigations initiated by the Department 
of Defense through the Defense Security Service by not later 
than the deadline specified in subsection (b), the Secretary 
shall, in consultation with the Director of the Office of Personnel 
Management, provide for a phased transition from the conduct 
of such investigations by the National Background Investiga-
tions Bureau of the Office of Personnel Management to the 
conduct of such investigations by the Defense Security Service 
by that deadline. 
(3) TRANSITION ELEMENTS.—The phased transition required 
by paragraph (2) shall— 
(A) provide for the transition of the conduct of inves-
tigations to the Defense Security Service using a risk 
management approach; and 
(B) be consistent with the transition from legacy 
information technology operated by the Office of Personnel 
Management to the new information technology, including
H. R. 2810—245 
the National Background Investigations System, as 
described in subsection (f). 
(b) COMMENCEMENT OF IMPLEMENTATION PLAN FOR ONGOING 
DISCHARGE
OF INVESTIGATIONS THROUGH DSS.—Not later than 
October 1, 2020, the Secretary of Defense shall commence carrying 
out the implementation plan developed pursuant to section 951(a)(1) 
of the National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328; 130 Stat. 2371; 10 U.S.C. 1564 note). 
(c) TRANSFER OF CERTAIN FUNCTIONS WITHIN DOD TO DSS.— 
(1) TRANSFER
REQUIRED.—For purposes of meeting the 
requirements in subsections (a) and (b), the Secretary of 
Defense shall transfer to the Defense Security Service the func-
tions, personnel, and associated resources of the following 
organizations: 
(A) The Consolidated Adjudications Facility. 
(B) Other organizations identified by the Secretary 
for purposes of this paragraph. 
(2) SUPPORTING
ORGANIZATIONS.—In addition to the 
organizations identified pursuant to paragraph (1), the fol-
lowing organizations shall prioritize resources to directly sup-
port the execution of requirements in subsections (a) and (b): 
(A) The Office of Cost Analysis and Program Evalua-
tion. 
(B) The Defense Digital Service. 
(C) Other organizations designated by the Secretary 
for purposes of this paragraph. 
(3) TIMING AND MANNER OF TRANSFER.—The Secretary— 
(A) may carry out the transfer required by paragraph 
(1) at any time before the date specified in subsection 
(b) that the Secretary considers appropriate for purposes 
of this section; and 
(B) shall carry out the transfer in a manner designed 
to minimize disruptions to the conduct of background inves-
tigations for personnel of the Department of Defense. 
(d) TRANSFER OF CERTAIN FUNCTIONS IN OPM TO DSS.— 
(1) IN GENERAL.—For purposes of meeting the requirements 
in subsections (a) and (b), the Secretary of Defense shall provide 
for the transfer of the functions described in paragraph (2), 
and any associated personnel and resources, to the Department 
of Defense. 
(2) FUNCTIONS.—The functions to be transferred pursuant 
to paragraph (1) are the following: 
(A) Any personnel security investigations functions 
transferred by the Secretary to the Director of the Office 
of Personnel Management pursuant to section 906 of the 
National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108–136; 5 U.S.C. 1101 note). 
(B) Any other functions of the Office of Personnel 
Management in connection with background investigations 
initiated by the Department of Defense that the Secretary 
and the Director jointly consider appropriate. 
(3) ASSESSMENT.—In carrying out the transfer of functions 
pursuant to paragraph (1), the Secretary shall conduct a com-
prehensive assessment of workforce requirements for both the 
Department of Defense and the National Background Investiga-
tions Bureau synchronized to the transition plan, including 
a forecast of workforce needs across the current future-years
H. R. 2810—246 
defense plan for the Department. Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
shall submit to the appropriate congressional committees a 
report containing the results of the assessment. 
(4) CONSULTATION.—The Secretary shall carry out para-
graphs (1), (2), and (3) in consultation with the Director of 
the Office of Personnel Management and the Director of the 
Office of Management and Budget. 
(5) LOCATION WITHIN DOD.—Any functions transferred to 
the Department of Defense pursuant to this subsection shall 
be located within the Defense Security Service. 
(e) CONDUCT OF CERTAIN ACTIONS.—For purposes of the conduct 
of background investigations following the commencement of car-
rying out the implementation plan referred to in subsection (b), 
the Secretary of Defense shall provide for the following: 
(1) A single capability for the centralized funding, submis-
sions, and processing of all background investigations, from 
within the Defense Security Service. 
(2) The discharge by the Consolidated Adjudications 
Facility, from within the Defense Security Service pursuant 
to transfer under subsection (c), of adjudications in connection 
with the following: 
(A) Background investigations. 
(B) Continuous evaluation and vetting checks. 
(f) ENHANCEMENT OF INFORMATION TECHNOLOGY CAPABILITIES 
OF NBIS.— 
(1) IN GENERAL.—The Secretary of Defense shall conduct 
a review of the information technology capabilities of the 
National Background Investigations System in order to deter-
mine whether enhancements to such capabilities are required 
for the following: 
(A) Support for background investigations pursuant 
to this section and section 951 of the National Defense 
Authorization Act for Fiscal Year 2017 (Public Law 114– 
328; 130 Stat. 2371; 10 U.S.C. 1564 note). 
(B) Support of the National Background Investigations 
Bureau. 
(C) Execution of the conduct of background investiga-
tions initiated by the Department of Defense pursuant 
to this section, including submissions and adjudications. 
(2) COMMON COMPONENT.—In providing for the transition 
and operation of the National Background Investigations 
System as described in paragraph (1)(C), the Secretary shall 
develop a common component of the System usable for back-
ground investigations by both the Defense Security Service 
and the National Background Investigations Bureau. 
(3) ENHANCEMENTS.—If the review pursuant to paragraph 
(1) determines that enhancements described in that paragraph 
are required, the Secretary shall carry out such enhancements. 
(4) CONSULTATION.—The Secretary shall carry out this sub-
section in consultation with the Director of the Office of Per-
sonnel Management. 
(g) USE
OF CERTAIN PRIVATE INDUSTRY DATA.—In carrying 
out background and security investigations pursuant to this section 
and section 951 of the National Defense Authorization Act for 
Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2371; 10 U.S.C. 
1564 note), the Secretary of Defense may use background materials
H. R. 2810—247 
collected on individuals by the private sector, in accordance with 
national policies and standards, that are applicable to such inves-
tigations, including materials as follows: 
(1) Financial information, including credit scores and credit 
status. 
(2) Criminal records. 
(3) Drug screening. 
(4) Verifications of information on resumes and employment 
applications, such as previous employers, educational achieve-
ment, and educational institutions attended. 
(5) Other publicly available electronic information. 
(h) SECURITY CLEARANCES FOR CONTRACTOR PERSONNEL.— 
(1) IN GENERAL.—The Secretary of Defense shall review 
the requirements of the Department of Defense relating to 
position sensitivity designations for contractor personnel in 
order to determine whether such requirements may be 
reassessed or modified to reduce the number and range of 
contractor personnel who are issued security clearances in 
connection with work under contracts with the Department. 
(2) GUIDANCE.—The Secretary shall issue guidance to pro-
gram managers, contracting officers, and security personnel 
of the Department specifying requirements for the review of 
contractor position sensitivity designations and the number 
of contractor personnel of the Department who are issued secu-
rity clearances for the purposes of determining whether the 
number of such personnel who are issued security clearances 
should and can be reduced. 
(i) PERSONNEL TO SUPPORT THE TRANSFER OF FUNCTIONS.— 
The Secretary of Defense shall authorize the Director of the Defense 
Security Service to promptly increase the number of personnel 
of the Defense Security Service for the purpose of beginning the 
establishment and expansion of investigative capacity to support 
the phased transfer of investigative functions from the Office of 
Personnel Management to the Department of Defense under this 
section. The Director of Cost Analysis and Program Assessment 
shall advise the Secretary on the size of the initial investigative 
workforce and the rate of growth of that workforce. 
(j) REPORT ON FUTURE PERIODIC REINVESTIGATIONS, INSIDER 
THREAT, AND CONTINUOUS VETTING.— 
(1) REPORT REQUIRED.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the appropriate congressional committees a 
report that includes the following: 
(A) An assessment of the feasibility and advisability 
of periodic reinvestigations of backgrounds of Government 
and 
contractor 
personnel 
with 
security 
clearances, 
including lessons from all of the continuous evaluation 
pilots being conducted throughout the Government, and 
identification of new or additional data sources and data 
analytic tools needed for improving current continuous 
evaluation or vetting capabilities. 
(B) A plan to provide the Government with an 
enhanced risk management model that reduces the gaps 
in coverage perpetuated by the current time-based periodic 
reinvestigations model, particularly in light of the 
increasing use of continuous background evaluations of 
personnel referred to in subparagraph (A).
H. R. 2810—248 
(C) A plan for expanding continuous background vet-
ting capabilities, such as the Installation Matching Engine 
for Security and Analysis, to the broader population, 
including those at the lowest tiers and levels of access, 
which plan shall include details to ensure that all individ-
uals credentialed for physical access to Department of 
Defense facilities and installations are vetted to the same 
level of fitness determinations and subject to appropriate 
continuous vetting. 
(D) A plan to fully integrate and incorporate insider 
threat data, tools, and capabilities into the new end-to- 
end vetting processes and supporting information tech-
nology established by the Defense Security Service to 
ensure a holistic and transformational approach to 
detecting, deterring, and mitigating threats posed by 
trusted insiders. 
(2) CONSULTATION.—The Secretary shall prepare the report 
under paragraph (1) in consultation with the Director of 
National Intelligence and the Director of the Office of Personnel 
Management. 
(k) QUARTERLY AND ANNUAL BRIEFINGS AND REPORTS.— 
(1) ANNUAL ASSESSMENT OF TIMELINESS.—Not later than 
December 31, 2018, and each December 31 thereafter through 
the date specified in paragraph (4), the Security Executive 
Agent, in coordination with the Chair and other Principals 
of the Security, Suitability, and Credentialing Performance 
Accountability Council, shall submit to the appropriate commit-
tees of Congress a report on the timeliness of personnel security 
clearance initiations, investigations, and adjudications, by clear-
ance level, for both initial investigations and periodic reinves-
tigations during the prior fiscal year for Government and con-
tractor employees, including the following: 
(A) The average periods of time taken by each author-
ized investigative agency and authorized adjudicative 
agency to initiate cases, conduct investigations, and adju-
dicate cases as compared with established timeliness objec-
tives, from the date a completed security clearance applica-
tion is received to the date of adjudication and notification 
to the subject and the subject’s employer. 
(B) The number of initial investigations and periodic 
reinvestigations initiated and adjudicated by each author-
ized adjudicative agency. 
(C) The number of initial investigations and periodic 
reinvestigations carried over from prior fiscal years by each 
authorized investigative and adjudicative agency. 
(D) The number of initial investigations and periodic 
reinvestigations that resulted in a denial or revocation 
of a security clearance by each authorized adjudicative 
agency. 
(E) The costs to the executive branch related to per-
sonnel security clearance initiations, investigations, adju-
dications, revocations, and continuous evaluation. 
(F) A discussion of any impediments to the timely 
processing of personnel security clearances. 
(G) The number of clearance holders enrolled in contin-
uous evaluation and the numbers and types of adverse
H. R. 2810—249 
actions taken as a result by each authorized adjudicative 
agency. 
(H) The number of personnel security clearance cases, 
both initial investigations and periodic reinvestigations, 
awaiting or under investigation by the National Back-
ground Investigations Bureau. 
(I) Other information as appropriate, including any 
recommendations to improve the timeliness and efficiency 
of personnel security clearance initiations, investigations, 
and adjudications. 
(2) QUARTERLY BRIEFINGS.—Not later than the end of each 
calendar-year quarter beginning after January 1, 2018, through 
the date specified in paragraph (4), the Secretary of Defense 
shall provide the appropriate congressional committees a 
briefing on the progress of the Secretary in carrying out the 
requirements of this section during that calendar-year quarter. 
Until the backlog of security clearance applications at the 
National Background Investigations Bureau is eliminated, each 
quarterly briefing shall also include the current status of the 
backlog and the resulting mission and resource impact to the 
Department of Defense and the defense industrial base. Until 
the phased transition described in subsection (a) is complete, 
each quarterly briefing shall also include identification of any 
resources planned for movement from the National Background 
Investigations Bureau to the Department of Defense during 
the next calendar-year quarter. 
(3) ANNUAL REPORTS.—Not later than December 31, 2018, 
and each December 31 thereafter through the date specified 
in paragraph (4), the Secretary of Defense shall submit to 
the appropriate congressional committees a report on the fol-
lowing for the calendar year in which the report is to be 
submitted: 
(A) The status of the Secretary in meeting the require-
ments in subsections (a), (b), and (c). 
(B) The status of any transfers to be carried out pursu-
ant to subsection (d). 
(C) An assessment of the personnel security capabilities 
of the Department of Defense. 
(D) The average periods of time taken by each author-
ized investigative agency and authorized adjudicative 
agency to initiate cases, conduct investigations, and adju-
dicate cases as compared with established timeliness objec-
tives, from the date a completed security clearance applica-
tion is received to the date of adjudication and notification 
to the subject and the subject’s employer. 
(E) The number of initial investigations and periodic 
reinvestigations initiated and adjudicated by each author-
ized adjudicative agency. 
(F) The number of initial investigations and periodic 
reinvestigations carried over from prior fiscal years by each 
authorized investigative and adjudicative agency. 
(G) The number of initial investigations and periodic 
reinvestigations that resulted in a denial or revocation 
of a security clearance by each authorized adjudicative 
agency.
H. R. 2810—250 
(H) The costs to the Department of Defense related 
to personnel security clearance initiations, investigations, 
adjudications, revocations, and continuous evaluation. 
(I) A discussion of any impediments to the timely proc-
essing of personnel security clearances. 
(J) The number of clearance holders enrolled in contin-
uous evaluation and the numbers and types of adverse 
actions taken as a result. 
(K) The number of personnel security clearance cases, 
both initial investigations and periodic reinvestigations, 
awaiting or under investigation by the National Back-
ground Investigations Bureau. 
(L) Other information that the Secretary considers 
appropriate, including any recommendations to improve 
the timeliness and efficiency of personnel security clearance 
initiations, investigations, and adjudications. 
(4) TERMINATION.—No briefing or report is required under 
this subsection after December 31, 2021. 
(l) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.—In 
this section, the term ‘‘appropriate congressional committees’’ 
means— 
(1) the Committees on Armed Services, Appropriations, 
Homeland Security and Governmental Affairs, and the Select 
Committee on Intelligence of the Senate; and 
(2) the Committees on Armed Services, Appropriations, 
Oversight and Government Reform, and the Permanent Select 
Committee on Intelligence of the House of Representatives. 
Subtitle D—Miscellaneous Reporting 
Requirements 
SEC. 931. ADDITIONAL ELEMENTS IN REPORTS ON POLICY, ORGANIZA-
TION, AND MANAGEMENT GOALS OF THE SECRETARY OF 
DEFENSE FOR THE DEPARTMENT OF DEFENSE. 
Section 912(a)(2) of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2349) is 
amended by adding at the end the following new subparagraphs: 
‘‘(D) A civilian operating force structure sized for oper-
ational effectiveness that is manned, equipped, and trained 
to support deployment time and rotation ratios that sustain 
the readiness and needed retention levels of the regular 
and reserve components of the Armed Forces. 
‘‘(E) The hiring authorities and other actions that the 
Secretary of Defense or the Secretaries of the military 
departments will take to eliminate any gaps between 
desired programmed civilian workforce levels and the cur-
rent size of the civilian workforce, set forth by mission 
and functional area.’’. 
SEC. 932. REPORT AND SENSE OF CONGRESS ON RESPONSIBILITY FOR 
DEVELOPMENTAL TEST AND EVALUATION WITHIN THE 
OFFICE OF THE SECRETARY OF DEFENSE. 
(a) REPORT ON PLANS TO ADDRESS DEVELOPMENTAL TEST AND 
EVALUATION RESPONSIBILITIES WITHIN THE OFFICE OF THE SEC-
RETARY OF DEFENSE.—
H. R. 2810—251 
(1) IN GENERAL.—Not later than 60 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 containing a strategy 
to ensure that there is sufficient expertise, oversight, and policy 
direction on developmental test and evaluation within the Office 
of the Secretary of Defense after the completion of the reorga-
nization of such Office required under section 901 of the 
National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2339). 
(2) ELEMENTS.—The report required by paragraph (1) shall 
address the following: 
(A) The structure of the roles and responsibilities of 
the senior Department of Defense official responsible for 
developmental test and evaluation, as distinct from oper-
ational test and evaluation or systems engineering. 
(B) The location of the senior Department of Defense 
official responsible for developmental test and evaluation 
within the organizational structure of the Office of the 
Secretary of Defense. 
(C) An estimate of personnel and other resources that 
should be made available to the senior Department of 
Defense official responsible for developmental test and 
evaluation to ensure that such official can provide inde-
pendent expertise, oversight, and policy direction and guid-
ance Department of Defense-wide. 
(D) Methods to ensure that the senior Department 
of Defense official responsible for developmental test and 
evaluation will be empowered to facilitate Department of 
Defense-wide efficiencies by helping programs to optimize 
test designs and activities, including ensuring access to 
program data and participation in acquisition program 
oversight. 
(E) Methods to ensure that an advocate for test and 
evaluation workforce will continue to exist within the 
acquisition workforce. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) developmental testing is critical to reducing acquisition 
program risk by providing valuable information to support 
sound decision making; 
(2) major defense acquisition programs often do not conduct 
enough developmental testing, so too many problems are first 
identified during operational testing, when they are expensive 
and time-consuming to fix; and 
(3) in order to ensure that effective developmental testing 
is conducted on major defense acquisition programs, the Sec-
retary of Defense should— 
(A) carefully consider where the senior Department 
of Defense official responsible for developmental test and 
evaluation is located within the organizational structure 
of the Office of the Secretary of Defense; and 
(B) ensure that such official has sufficient authority 
and resources to provide oversight and policy direction 
on developmental test and evaluation Department of 
Defense-wide.
H. R. 2810—252 
SEC. 933. REPORT ON OFFICE OF CORROSION POLICY AND OVERSIGHT. 
(a) REPORT REQUIRED.—Not later than 90 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— 
(1) evaluating the continued need for the Office of Corrosion 
Policy and Oversight; and 
(2) containing a recommendation regarding whether to 
retain or terminate the Office. 
(b) ASSESSMENT.—As part of the report required by subsection 
(a), the Secretary of Defense shall conduct an assessment to deter-
mine whether there is duplication in matters relating to corrosion 
prevention and control and mitigation of corrosion of the military 
equipment and infrastructure of the Department of Defense between 
the Office of Corrosion Policy and Oversight and other elements 
of the Department, including, in particular, the Corrosion Control 
and Prevention Executives of the military departments. 
(c) RECOMMENDATION.—If the report required by subsection 
(a) includes a recommendation to terminate the Office of Corrosion 
Policy and Oversight, the Secretary of Defense shall include rec-
ommendations for such additional authorities, if any, for the mili-
tary departments and the Armed Forces as the Secretary considers 
appropriate to ensure the proper discharge by the Department 
of Defense of functions relating to corrosion prevention and control 
and mitigation of corrosion in the absence of the Office. 
Subtitle D—Other Matters 
SEC. 941. COMMISSION ON THE NATIONAL DEFENSE STRATEGY FOR 
THE UNITED STATES. 
(a) EXTENSION OF DEADLINES FOR REPORTING AND BRIEFING 
REQUIREMENTS.—Section 942(e) of the National Defense Authoriza-
tion Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2368) 
is amended— 
(1) in paragraph (1), by striking ‘‘December 1, 2017’’ and 
inserting ‘‘July 1, 2018’’; and 
(2) in paragraph (2), by striking ‘‘June 1, 2017’’ and 
inserting ‘‘March 1, 2018’’. 
(b) TREATMENT OF COMMISSION.—Section 942 of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114– 
328; 130 Stat. 2368) is amended by adding at the end the following 
new subsection: 
‘‘(h) LEGISLATIVE ADVISORY COMMITTEE.—The Commission shall 
operate as a legislative advisory committee and shall not be subject 
to the provisions of the Federal Advisory Committee Act (Public 
Law 92–463; 5 U.S.C. App.) or section 552b of title 5, United 
States Code (commonly known as the Government in the Sunshine 
Act).’’. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. General transfer authority. 
Sec. 1002. Consolidation, codification, and improvement of certain authorities and 
requirements in connection with the audit of the financial statements of 
the Department of Defense.
H. R. 2810—253 
Sec. 1003. Improper payment matters. 
Sec. 1004. Rankings of auditability of financial statements of the organizations and 
elements of the Department of Defense. 
Sec. 1005. Financial operations dashboard for the Department of Defense. 
Sec. 1006. Review and recommendations on efforts to obtain audit opinion on full 
financial statements. 
Sec. 1007. Notification requirement for certain contracts for audit services. 
Subtitle B—Counterdrug Activities 
Sec. 1011. Extension of authority to support a unified counterdrug and counterter-
rorism campaign in Colombia. 
Sec. 1012. Venue for prosecution of maritime drug trafficking. 
Subtitle C—Naval Vessels and Shipyards 
Sec. 1021. National Defense Sealift Fund. 
Sec. 1022. Use of National Sea-Based Deterrence Fund for multiyear procurement 
of certain critical components. 
Sec. 1023. Operational readiness of littoral combat ships on extended deployment. 
Sec. 1024. Availability of funds for retirement or inactivation of Ticonderoga-class 
cruisers or dock landing ships. 
Sec. 1025. Policy of the United States on minimum number of battle force ships. 
Sec. 1026. Surveying ships. 
Subtitle D—Counterterrorism 
Sec. 1031. Modification of authority on support of special operations to combat ter-
rorism. 
Sec. 1032. Termination of requirement to submit annual budget justification dis-
play for Department of Defense combating terrorism program. 
Sec. 1033. Prohibition on use of funds for transfer or release of individuals detained 
at United States Naval Station, Guantanamo Bay, Cuba to the United 
States. 
Sec. 1034. Prohibition on use of funds to construct or modify facilities in the United 
States to house detainees transferred from United States Naval Station, 
Guantanamo Bay, Cuba. 
Sec. 1035. Prohibition on use of funds for transfer or release of individuals detained 
at United States Naval Station, Guantanamo Bay, Cuba, to certain 
countries. 
Sec. 1036. Prohibition on use of funds to close or relinquish control of United States 
Naval Station, Guantanamo Bay, Cuba. 
Sec. 1037. Sense of Congress regarding providing for timely victim and family testi-
mony in military commission trials. 
Sec. 1038. Report on public availability of military commissions proceedings. 
Subtitle E—Miscellaneous Authorities and Limitations 
Sec. 1041. Limitation on expenditure of funds for emergency and extraordinary ex-
penses for intelligence and counter-intelligence activities. 
Sec. 1042. Matters relating to the submittal of future-years defense programs. 
Sec. 1043. Modifications to humanitarian demining assistance authorities. 
Sec. 1044. Prohibition on charge of certain tariffs on aircraft traveling through 
channel routes. 
Sec. 1045. Prohibition on lobbying activities with respect to the Department of De-
fense by certain officers of the Armed Forces and civilian employees of 
the Department following separation from military service or employ-
ment with the Department. 
Sec. 1046. Prohibition on use of funds for retirement of legacy maritime mine coun-
termeasures platforms. 
Sec. 1047. Report on western Pacific Ocean ship depot maintenance capability and 
capacity. 
Sec. 1048. Annual training regarding the influence campaign of the Russian Fed-
eration. 
Sec. 1049. Workforce issues for military realignments in the Pacific. 
Subtitle F—Studies and Reports 
Sec. 1051. Elimination of reporting requirements terminated after November 25, 
2017, pursuant to section 1080 of the National Defense Authorization 
Act for Fiscal Year 2016. 
Sec. 1052. Report on transfer of defense articles to units committing gross viola-
tions of human rights. 
Sec. 1053. Report on the National Biodefense Analysis and Countermeasures Cen-
ter.
H. R. 2810—254 
Sec. 1054. Report on Department of Defense Arctic capability and resource gaps 
and required infrastructure. 
Sec. 1055. Review and assessment of Department of Defense personnel recovery 
and nonconventional assisted recovery mechanisms. 
Sec. 1056. Mine warfare readiness inspection plan and report. 
Sec. 1057. Annual report on civilian casualties in connection with United States 
military operations. 
Sec. 1058. Report on Joint Pacific Alaska Range Complex modernization. 
Sec. 1059. Report on alternatives to aqueous film forming foam. 
Sec. 1060. Assessment of global force posture. 
Sec. 1061. Army modernization strategy. 
Sec. 1062. Report on Army plan to improve operational unit readiness by reducing 
number of non-deployable soldiers assigned to operational units. 
Sec. 1063. Efforts to combat physiological episodes on certain Navy aircraft. 
Sec. 1064. Studies on aircraft inventories for the Air Force. 
Sec. 1065. Department of Defense review of Navy capabilities in the Arctic region. 
Sec. 1066. Comprehensive review of maritime intelligence, surveillance, reconnais-
sance, and targeting capabilities. 
Sec. 1067. Report on the need for a Joint Chemical-Biological Defense Logistics 
Center. 
Sec. 1068. Missile Technology Control Regime Category I unmanned aerial vehicle 
systems. 
Sec. 1069. Recommendations for interagency vetting of foreign investments affect-
ing national security. 
Sec. 1070. Briefing on prior attempted Russian cyber attacks against defense sys-
tems. 
Sec. 1071. Enhanced analytical and monitoring capability of the defense industrial 
base. 
Sec. 1072. Report on defense of combat logistics and strategic mobility forces. 
Sec. 1073. Report on acquisition strategy to recapitalize the existing system for un-
dersea fixed surveillance. 
Sec. 1074. Report on implementation of requirements in connection with the orga-
nization of the Department of Defense for management of special oper-
ations forces and special operations. 
Sec. 1075. Report on the global food system and vulnerabilities relevant to Depart-
ment of Defense missions. 
Subtitle G—Modernizing Government Technology 
Sec. 1076. Definitions. 
Sec. 1077. Establishment of agency information technology systems modernization 
and working capital funds. 
Sec. 1078. Establishment of technology modernization fund and board. 
Subtitle H—Other Matters 
Sec. 1081. Technical, conforming, and clerical amendments. 
Sec. 1082. Clarification of applicability of certain provisions of law to civilian judges 
of the United States Court of Military Commission Review. 
Sec. 1083. Modification of requirement relating to conversion of certain military 
technician (dual status) positions to civilian positions. 
Sec. 1084. National Guard accessibility to Department of Defense issued unmanned 
aircraft. 
Sec. 1085. Sense of Congress regarding aircraft carriers. 
Sec. 1086. Sense of Congress recognizing the United States Navy Seabees. 
Sec. 1087. Construction of memorial to the crew of the Apollo I launch test accident 
at Arlington National Cemetery. 
Sec. 1088. Department of Defense engagement with covered non-Federal entities. 
Sec. 1089. Prize competition to identify root cause of physiological episodes on 
Navy, Marine Corps, and Air Force training and operational aircraft. 
Sec. 1090. Providing assistance to House of Representatives in response to cyberse-
curity events. 
Sec. 1091. Transfer of surplus firearms to Corporation for the Promotion of Rifle 
Practice and Firearms Safety. 
Sec. 1092. Collaboration between Federal Aviation Administration and Department 
of Defense on unmanned aircraft systems. 
Sec. 1093. Carriage of certain programming. 
Sec. 1094. National strategy for countering violent extremism. 
Sec. 1095. Sense of Congress regarding World War I. 
Sec. 1096. Notice to Congress of terms of Department of Defense settlement agree-
ments. 
Sec. 1097. Office of Special Counsel reauthorization. 
Sec. 1098. Air transportation of civilian Department of Defense personnel to and 
from Afghanistan.
H. R. 2810—255 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the Secretary of 
Defense that such action is necessary in the national interest, 
the Secretary may transfer amounts of authorizations made 
available to the Department of Defense in this division for 
fiscal year 2018 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of authorizations 
so transferred shall be merged with and be available for the 
same purposes as the authorization to which transferred. 
(2) LIMITATION.—Except as provided in paragraph (3), the 
total amount of authorizations that the Secretary may transfer 
under 
the 
authority 
of 
this 
section 
may 
not 
exceed 
$4,500,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN
MILITARY
PER-
SONNEL AUTHORIZATIONS.—A transfer of funds between military 
personnel authorizations under title IV shall not be counted 
toward the dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by subsection (a) to 
transfer authorizations— 
(1) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(2) may not be used to provide authority for an item that 
has been denied authorization by Congress. 
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify 
Congress of each transfer made under subsection (a). 
SEC. 1002. CONSOLIDATION, CODIFICATION, AND IMPROVEMENT OF 
CERTAIN AUTHORITIES AND REQUIREMENTS IN CONNEC-
TION WITH THE AUDIT OF THE FINANCIAL STATEMENTS 
OF THE DEPARTMENT OF DEFENSE. 
(a) ESTABLISHMENT OF NEW CHAPTER ON AUDIT.— 
(1) IN GENERAL.—Part I of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 9 the fol-
lowing new chapter: 
‘‘CHAPTER 9A—AUDIT 
‘‘Sec. 
‘‘251. Audit of Department of Defense financial statements. 
‘‘252. Financial Improvement and Audit Remediation Plan. 
‘‘253. Audit: consolidated corrective action plan; centralized reporting system. 
‘‘254. Audits: audit of financial statements of Department of Defense components by 
independent external auditors. 
‘‘254a. Audits: use of commercial data integration and analysis products in pre-
paring audits. 
‘‘254b. Audits: selection of service providers for audit services.’’. 
(2) CLERICAL AMENDMENTS.—The tables of chapters at the 
beginning of subtitle A of title 10, United States Code, and
H. R. 2810—256 
part I of such subtitle, are each amended by inserting after 
the item relating to chapter 9 the following new item: 
‘‘9A. Audit .............................................................................................................
251’’. 
(b) REQUIREMENT FOR AUDIT OF FINANCIAL STATEMENTS.— 
(1) IN GENERAL.—Chapter 9A of title 10, United States 
Code, as added by subsection (a), is amended by inserting 
after the table of sections a new section 251 as follows: 
‘‘§ 251. Audit of Department of Defense financial statements 
‘‘(a) ANNUAL AUDIT REQUIRED.—The Secretary of Defense shall 
ensure that a full audit is performed on the financial statements 
of the Department of Defense for each fiscal year as required 
by section 3521(e) of title 31. 
‘‘(b) ANNUAL REPORT ON AUDIT.—The Secretary shall submit 
to Congress the results of the audit performed in accordance with 
subsection (a) for a fiscal year by not later than March 31 of 
the following fiscal year.’’. 
(2) CONFORMING
REPEAL.—Section 1003 of the National 
Defense Authorization Act for Fiscal Year 2014 (Public Law 
113–66; 127 Stat. 842; 10 U.S.C. 2222 note) is repealed. 
(c) FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION PLAN.— 
(1) IN GENERAL.—Chapter 9A of title 10, United States 
Code, as added and amended by this section, is further amended 
by inserting after section 251, as added by subsection (b), 
a new section 252 consisting of— 
(A) a heading as follows: 
‘‘§ 252. Financial Improvement and Audit Remediation Plan’’; 
and 
(B) a text consisting subsection (a) of section 1003 
of the National Defense Authorization Act for Fiscal Year 
2010 (10 U.S.C. 2222 note). 
(2) AMENDMENTS IN CONNECTION WITH CODIFICATION.—Sub-
section (a) of section 252 of title 10, United States Code, as 
added by paragraph (1), is amended— 
(A) in paragraph (1), by striking ‘‘develop and’’; and 
(B) in paragraph (2)(B), by striking ‘‘of title 10, United 
States Code’’ and inserting ‘‘of this title’’. 
(3) IMPROVEMENTS.—Such section 252, as added and 
amended by this subsection, is further amended— 
(A) in the subsection headings for subsection (a), by 
striking ‘‘FINANCIAL IMPROVEMENT AND AUDIT READINESS 
PLAN’’ and inserting ‘‘FINANCIAL IMPROVEMENT AND AUDIT 
REMEDIATION PLAN’’; 
(B) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘Financial 
Improvement and Audit Readiness Plan’’ and inserting 
‘‘Financial Improvement and Audit Remediation Plan’’; 
and 
(ii) in paragraph (2)— 
(I) in subparagraph (A)— 
(aa) by striking the matter preceding 
clause (i) and inserting the following: 
‘‘(A) describe specific actions to be taken, including 
interim milestones with a detailed description of the 
subordinate activities required, and estimate the costs asso-
ciated with—’’;
H. R. 2810—257 
(bb) in clause (ii), by striking ‘‘are vali-
dated as ready for audit’’ and all that follows 
and inserting ‘‘go under full financial state-
ment audit, and that the Department leader-
ship makes every effort to reach an unmodified 
opinion as soon as possible;’’; and 
(cc) by adding at the end the following 
new clauses: 
‘‘(iii) achieving an unqualified audit opinion for 
each major element of the statement of budgetary 
resources of the Department of Defense; and 
‘‘(iv) addressing the existence and completeness 
of each major category of Department of Defense 
assets; and’’; 
(II) in subparagraph (B)— 
(aa) 
by 
inserting 
‘‘business’’ 
before 
‘‘process and control’’; 
(bb) by striking ‘‘the business enterprise 
architecture and transition plan required by’’; 
and 
(cc) by striking the semicolon at the end 
and inserting a period; and 
(III) by striking subparagraphs (C) and (D); 
and 
(C) by inserting after subsection (a) the following new 
subsection (b): 
‘‘(b) REPORT AND BRIEFING REQUIREMENTS.— 
‘‘(1) ANNUAL REPORT.— 
‘‘(A) IN GENERAL.—Not later than June 30, 2019, and 
annually thereafter, the Under Secretary of Defense (Comp-
troller) shall submit to the congressional defense commit-
tees a report on the status of the implementation by the 
Department of Defense of the Financial Improvement and 
Audit Remediation Plan under subsection (a). 
‘‘(B) ELEMENTS.—Each report under subparagraph (A) 
shall include the following: 
‘‘(i) An analysis of the consolidated corrective 
action plan management summary prepared pursuant 
to section 253a of this title. 
‘‘(ii) Current Department of Defense-wide informa-
tion on the status of corrective actions plans related 
to critical capabilities and material weaknesses, 
including the standard data elements recommended 
in the implementation guide for Office of Management 
and Budget Circular A–123, for the armed forces, mili-
tary departments, and Defense Agencies. 
‘‘(iii) A current description of the work undertaken 
and planned to be undertaken by the Department of 
Defense, and the military departments, Defense Agen-
cies, and other organizations and elements of the 
Department, to test and verify transaction data perti-
nent to obtaining an unqualified audit of their financial 
statements, including from feeder systems. 
‘‘(iv) A current projected timeline of the Depart-
ment in connection with the audit of the full financial 
statements of the Department, to be submitted to Con-
gress annually not later than six months after the
H. R. 2810—258 
submittal to Congress of the budget of the President 
for a fiscal year under section 1105 of title 31, including 
the following: 
‘‘(I) The date on which the Department 
projects the beginning of an audit of the full finan-
cial statements of the Department, and the mili-
tary departments, Defense Agencies, and other 
organizations and elements of the Department, for 
a fiscal year. 
‘‘(II) The date on which the Department 
projects the completions of audits of the full finan-
cial statements of the Department, and the mili-
tary departments, Defense Agencies, and other 
organizations and elements of the Department, for 
a fiscal year. 
‘‘(III) The dates on which the Department esti-
mates it will obtain an unqualified audit opinion 
on the full financial statements of the Department, 
the military departments, the Defense Agencies, 
and other organizations and elements of the 
Department for a fiscal year. 
‘‘(v) A current estimate of the anticipated annual 
costs of maintaining an unqualified audit opinion on 
the full financial statements of the Department, the 
military departments, the Defense Agencies, and other 
organizations and elements of the Department for a 
fiscal year after an unqualified audit opinion on such 
full financial statements for a fiscal year is first 
obtained. 
‘‘(vi) A certification of the results of the audit of 
the financial statements of the Department performed 
for the preceding fiscal year, and a statement summa-
rizing, based on such results, the current condition 
of the financial statements of the Department. 
‘‘(2) SEMIANNUAL BRIEFINGS.—Not later than January 31 
and June 30 each year, the Under Secretary of Defense (Comp-
troller) and the comptrollers of the military departments shall 
provide a briefing to the congressional defense committees on 
the status of the corrective action plan. 
‘‘(3) CRITICAL CAPABILITIES DEFINED.—In this subsection, 
the term ‘critical capabilities’ means the critical capabilities 
described in the Department of Defense report titled ‘Financial 
Improvement and Audit Readiness (FIAR) Plan Status Report’ 
and dated May 2016.’’. 
(4) CONFORMING
REPEAL.—Section 1003 of the National 
Defense Authorization Act for Fiscal Year 2010 is repealed. 
(d) CONSOLIDATED CORRECTIVE ACTION PLAN.—Chapter 9A of 
title 10, United States Code, as added and amended by this section, 
is further amended by adding after section 252, as added and 
amended by subsection (c), a new section 253 consisting of— 
(1) a heading as follows: 
‘‘§ 253. Audit: consolidated corrective action plan; centralized 
reporting system’’; and 
(2) a text as follows: 
‘‘The Under Secretary of Defense (Comptroller) shall—
H. R. 2810—259 
‘‘(1) on a bimonthly basis, prepare a consolidated corrective 
action plan management summary on the status of key correc-
tive actions plans related to critical capabilities for the armed 
forces and for the components of the Department of Defense 
that support the armed forces; and 
‘‘(2) develop and maintain a centralized monitoring and 
reporting process that captures and maintains up-to-date 
information, including the standard data elements rec-
ommended in the implementation guide for Office of Manage-
ment and Budget Circular A–123, for key corrective action 
plans and findings and recommendations Department-wide that 
pertain to critical capabilities.’’. 
(e) AUDIT OF DOD COMPONENTS BY INDEPENDENT EXTERNAL 
AUDITORS.— 
(1) IN GENERAL.—Chapter 9A of title 10, United States 
Code, as added and amended by this section, is further amended 
by adding after section 253, as added and amended by sub-
section (d), a new section 254 consisting of— 
(A) a heading as follows: 
‘‘§ 254. Audits: audit of financial statements of Department 
of Defense components by independent external 
auditors’’; and 
(B) a text consisting of the text of section 1005 of 
the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114–92; 129 Stat. 861; 10 U.S.C. 2222 
note). 
(2) AMENDMENTS IN CONNECTION WITH CODIFICATION.—Sec-
tion 254 of title 10, United States Code, as added by paragraph 
(1), is further amended— 
(A) in subsections (d)(1)(A) and (e)(3), by striking ‘‘, 
United States Code’’; and 
(B) in subsections (a) and (e)(2), by striking ‘‘, United 
States Code,’’. 
(3) IMPROVEMENTS.—Such section 254, as added and 
amended by this subsection, is further amended— 
(A) in subsection (d)(1)— 
(i) in subparagraph (A), by inserting ‘‘and the Chief 
Management Officer of the Department of Defense’’ 
before the semicolon; 
(ii) in subparagraph (B), by striking ‘‘and’’ at the 
end; 
(iii) by redesignating subparagraph (C) as subpara-
graph (D); and 
(iv) by inserting after subparagraph (B), the fol-
lowing new subparagraph (C): 
‘‘(C) the head of each component audited; and’’; and 
(B) in subsection (e)— 
(i) by striking paragraph (1); and 
(ii) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively. 
(4) CONFORMING
REPEAL.—Section 1005 of the National 
Defense Authorization Act for Fiscal Year 2016 is repealed. 
(f) USE
OF COMMERCIAL DATA INTEGRATION
AND ANALYSIS 
PRODUCTS.— 
(1) IN GENERAL.—Chapter 9A of title 10, United States 
Code, as added and amended by this section, is further amended
H. R. 2810—260 
by adding after section 254, as added and amended by sub-
section (e), a new section 254a consisting of— 
(A) a heading as follows: 
‘‘§ 254a. Audits: use of commercial data integration and anal-
ysis products in preparing audits’’; and 
(B) a text consisting of subsections (a) and (b) of section 
1003 of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114–328; 130 Stat. 2380; 10 U.S.C. 
2222 note). 
(2) AMENDMENTS IN CONNECTION WITH CODIFICATION.—Sec-
tion 254a of title 10, United States Code, as added by paragraph 
(1), is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘of title 10, United States Code,’’ 
and inserting ‘‘of this title’’; and 
(ii) by striking ‘‘, as soon as practicable,’’; and 
(B) in subsection (b), by striking ‘‘this deployment’’ 
and inserting ‘‘deployment of technologies and services as 
described in subsection (a)’’. 
(3) CONFORMING
REPEAL.—Section 1003 of the National 
Defense Authorization Act for Fiscal Year 2017 is repealed. 
(g) SELECTION OF SERVICE PROVIDERS FOR AUDIT SERVICES.— 
(1) IN GENERAL.—Chapter 9A of title 10, United States 
Code, as added and amended by this section, is further amended 
by adding after section 254a, as added and amended by sub-
section (f), a new section 254b consisting of— 
(A) a heading as follows: 
‘‘§ 254b. Audits: selection of service providers for audit serv-
ices’’; and 
(B) a text consisting of the text of section 892 of the 
National Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328; 130 Stat. 2324; 10 U.S.C. 2331 note). 
(2) IMPROVEMENT.—Section 254b of title 10, United States 
Code, as added by paragraph (1), is amended by striking ‘‘and 
audit readiness services’’. 
(3) CONFORMING
REPEAL.—Section 892 of the National 
Defense Authorization Act for Fiscal Year 2017 is repealed. 
(h) REPEAL OF CERTAIN REQUIREMENTS IN CONNECTION WITH 
RELIABILITY OF DOD FINANCIAL STATEMENTS.—Section 1008 of the 
National Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 
113 note) is amended by striking subsections (d), (e), and (f). 
SEC. 1003. IMPROPER PAYMENT MATTERS. 
Subject to the authority, direction, and control of the Secretary 
of Defense, the Under Secretary of Defense (Comptroller) shall 
take the following actions: 
(1) With regard to estimating improper payments: 
(A) Establish and implement key quality assurance 
procedures, such as reconciliations, to ensure the complete-
ness and accuracy of sampled populations. 
(B) Revise the procedures for the sampling methodolo-
gies of the Department of Defense so that such proce-
dures— 
(i) comply with Office of Management and Budget 
guidance and generally accepted statistical standards;
H. R. 2810—261 
(ii) produce statistically valid improper payment 
error rates, statistically valid improper payment dollar 
estimates, and appropriate confidence intervals for 
both; and 
(iii) in meeting clauses (i) and (ii), take into account 
the size and complexity of the transactions being sam-
pled. 
(2) With regard to identifying programs susceptible to 
significant improper payments, conduct a risk assessment that 
complies with the Improper Payments Elimination and 
Recovery Act of 2010 (Public Law 111–204) and the amend-
ments made by that Act (in this section collectively referred 
to as ‘‘IPERA’’). 
(3) With regard to reducing improper payments, establish 
procedures that produce corrective action plans that— 
(A) comply fully with IPERA and associated Office 
of Management and Budget guidance, including by holding 
individuals responsible for implementing corrective actions 
and monitoring the status of corrective actions; and 
(B) are in accordance with best practices, such as those 
recommended by the Chief Financial Officers Council, 
including by providing for— 
(i) measurement of the progress made toward 
remediating root causes of improper payments; and 
(ii) communication to the Secretary of Defense and 
the heads of departments, agencies, and organizations 
and elements of the Department of Defense, and key 
stakeholders, on the progress made toward remediating 
the root causes of improper payments. 
(4) With regard to implementing recovery audits for 
improper payments, develop and implement procedures to— 
(A) identify costs related to the recovery audits and 
recovery efforts of the Department of Defense; and 
(B) evaluate improper payment recovery efforts in 
order to ensure that they are cost effective. 
(5) Monitor the implementation of the revised chapter of 
the Financial Management Regulations on recovery audits in 
order to ensure that the Department of Defense, the military 
departments, the Defense Agencies, and the other organizations 
and elements of the Department of Defense either conduct 
recovery audits or demonstrate that it is not cost effective 
to do so. 
(6) Develop and submit to the Office of Management and 
Budget for approval a payment recapture audit plan that fully 
complies with Office of Management and Budget guidance. 
(7) With regard to reporting on improper payments, design 
and implement procedures to ensure that the annual improper 
payment and recovery audit reporting of the Department of 
Defense is complete, accurate, and complies with IPERA and 
associated Office of Management and Budget guidance. 
SEC. 1004. RANKINGS OF AUDITABILITY OF FINANCIAL STATEMENTS 
OF 
THE 
ORGANIZATIONS 
AND 
ELEMENTS 
OF 
THE 
DEPARTMENT OF DEFENSE. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Defense shall, in coordination with the
H. R. 2810—262 
Under Secretary of Defense (Comptroller), submit to the congres-
sional defense committees a report setting forth a ranking of the 
auditability of the financial statements of the departments, agen-
cies, organizations, and elements of the Department of Defense 
according to the progress made toward achieving auditability as 
required by law. The Under Secretary shall determine the criteria 
to be used for purposes of the rankings. 
SEC. 1005. FINANCIAL OPERATIONS DASHBOARD FOR THE DEPART-
MENT OF DEFENSE. 
(a) IN GENERAL.—The Under Secretary of Defense (Comptroller) 
shall develop and maintain on an Internet website available to 
Department of Defense agencies a tool (commonly referred to as 
a ‘‘dashboard)’’ to permit officials to track key indicators of the 
financial performance of the Department of Defense. Such key 
indicators may include outstanding accounts payable, abnormal 
accounts payable, outstanding advances, unmatched disbursements, 
abnormal undelivered orders, negative unliquidated obligations, vio-
lations of sections 1341 and 1517(a) of title 31, United States 
Code (commonly referred to as the ‘‘Anti-Deficiency Act’’), costs 
deriving from payment delays, interest penalty payments, and 
improper payments, and actual savings realized through interest 
payments made, discounts for timely or advanced payments, and 
other financial management and improvement initiatives. 
(b) INFORMATION COVERED.—The tool shall cover financial 
performance information for the military departments, the defense 
agencies, and any other organizations or elements of the Depart-
ment of Defense. 
(c) TRACKING OF PERFORMANCE OVER TIME.—The tool shall 
permit the tracking of financial performance over time, including 
by month, quarter, and year, and permit users of the tool to export 
both current and historical data on financial performance. 
(d) UPDATES.—The information covered by the tool shall be 
updated not less frequently than quarterly. 
SEC. 1006. REVIEW AND RECOMMENDATIONS ON EFFORTS TO OBTAIN 
AUDIT OPINION ON FULL FINANCIAL STATEMENTS. 
(a) IN GENERAL.—The Secretary of Defense may establish 
within the Department of Defense a team of distinguished, private 
sector experts with experience conducting financial audits of large 
public or private sector organizations to review and make rec-
ommendations to improve the efforts of the Department to obtain 
an audit opinion on its full financial statements. 
(b) SCOPE OF ACTIVITIES.—A team established pursuant to sub-
section (a) shall— 
(1) identify impediments to the progress of the Department 
in obtaining an audit opinion on its full financial statements, 
including an identification of the organizations or elements 
that are lagging in their efforts toward obtaining such audit 
opinion; 
(2) estimate when an audit opinion on the full financial 
statements of the Department will be obtained; and 
(3) consider mechanisms and incentives to support efficient 
achievement by the Department of its audit goals, including 
organizational mechanisms to transfer direction and manage-
ment control of audit activities from subordinate organizations 
to the Office of the Secretary of Defense, individual personnel
H. R. 2810—263 
incentives, workforce improvements (including in senior leader-
ship positions), business process, technology, and systems 
improvements (including the use of data analytics), and metrics 
by which the Secretary and Congress may measure and assess 
progress toward achievement of the audit goals of the Depart-
ment. 
(c) REPORTS.— 
(1) REPORT ON ESTABLISHMENT OF TEAM.—If the Secretary 
takes action pursuant to subsection (a), the Secretary shall, 
not later than September 30, 2019, submit to the congressional 
defense committees a report on the team established pursuant 
to that subsection, including a description of the actions taken 
and to be taken by the team pursuant to subsection (b). 
(2) REPORT ON DETERMINATION NOT TO ESTABLISH TEAM.— 
If as of June 1, 2019, the Secretary has determined not to 
establish a team authorized by subsection (a), the Secretary 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives on that date a report on 
the determination, including an explanation and justification 
for the determination. 
SEC. 1007. NOTIFICATION REQUIREMENT FOR CERTAIN CONTRACTS 
FOR AUDIT SERVICES. 
(a) NOTIFICATION
TO CONGRESS.—If the Under Secretary of 
Defense (Comptroller) makes a written finding that a delay in 
performance of a covered contract while a protest is pending would 
hinder the annual preparation of audited financial statements for 
the Department of Defense, and the head of the procuring activity 
responsible for the award of the covered contract does not authorize 
the award of the contract (pursuant to section 3553(c)(2) of title 
31, United States Code) or the performance of the contract (pursu-
ant to section 3553(d)(3)(C) of such title), the Secretary of Defense 
shall— 
(1) notify the congressional defense committees within 10 
days after such finding is made; and 
(2) describe any steps the Department of Defense plans 
to take to mitigate any hindrance identified in such finding 
to the annual preparation of audited financial statements for 
the Department. 
(b) COVERED CONTRACT DEFINED.—In this section, the term 
‘‘covered contract’’ means a contract for services to perform an 
audit to comply with the requirements of section 3515 of title 
31, United States Code. 
Subtitle B—Counterdrug Activities 
SEC. 1011. EXTENSION OF AUTHORITY TO SUPPORT A UNIFIED 
COUNTERDRUG AND COUNTERTERRORISM CAMPAIGN IN 
COLOMBIA. 
Section 1021 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108–375; 118 
Stat. 2042), as most recently amended by section 1013 of the 
National Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2385), is further amended— 
(1) in subsection (a)(1), by striking ‘‘2019’’ and inserting 
‘‘2022’’; and
H. R. 2810—264 
(2) in subsection (c), by striking ‘‘2019’’ and inserting 
‘‘2022’’. 
SEC. 1012. VENUE FOR PROSECUTION OF MARITIME DRUG TRAF-
FICKING. 
(a) IN GENERAL.—Section 70504(b) of title 46, United States 
Code, is amended to read as follows: 
‘‘(b) VENUE.—A person violating section 70503 or 70508— 
‘‘(1) shall be tried in the district in which such offense 
was committed; or 
‘‘(2) if the offense was begun or committed upon the high 
seas, or elsewhere outside the jurisdiction of any particular 
State or district, may be tried in any district.’’. 
(b) CONFORMING AMENDMENT.—Section 1009(d) of the Con-
trolled Substances Import and Export Act (21 U.S.C. 959(d)) is 
amended— 
(1) in the subsection title, by striking ‘‘; VENUE’’; and 
(2) by striking ‘‘Any person who violates this section shall 
be tried in the United States district court at the point of 
entry where such person enters the United States, or in the 
United States District Court for the District of Columbia.’’. 
Subtitle C—Naval Vessels and Shipyards 
SEC. 1021. NATIONAL DEFENSE SEALIFT FUND. 
(a) FUND PURPOSES; DEPOSITS.—Section 2218 of title 10, United 
States Code, is amended— 
(1) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking subparagraph (D); and 
(ii) by redesignating subparagraph (E) as subpara-
graph (D); 
(B) in paragraph (3), by striking ‘‘or (D)’’; and 
(2) in subsection (d)— 
(A) in paragraph (1)— 
(i) in subparagraph (B), by inserting ‘‘and’’ after 
the semicolon; 
(ii) in subparagraph (C), by striking ‘‘; and’’ and 
inserting a period; and 
(iii) by striking subparagraph (D); and 
(B) by adding at the end the following new paragraph 
(4): 
‘‘(4) Any other funds made available to the Department 
of Defense to carry out any of the purposes described in sub-
section (c).’’. 
(b) AUTHORITY TO PURCHASE USED VESSELS.—Subsection (f) 
of such section is amended by adding at the end the following 
new paragraph: 
‘‘(3)(A) Notwithstanding the limitations under subsection 
(c)(1)(E) and paragraph (1), the Secretary of Defense may, as part 
of a program to recapitalize the Ready Reserve Force component 
of the national defense reserve fleet and the Military Sealift Com-
mand surge fleet, purchase any used vessel, regardless of where 
such vessel was constructed if such vessel— 
‘‘(i) participated in the Maritime Security Fleet; and
H. R. 2810—265 
‘‘(ii) is available for purchase at a reasonable cost, as deter-
mined by the Secretary. 
‘‘(B) If the Secretary determines that no used vessel meeting 
the requirements under clauses (i) and (ii) of subparagraph (A) 
is available, the Secretary may purchase a used vessel comparable 
to a vessel described in clause (i) of subparagraph (A), regardless 
of the source of the vessel or where the vessel was constructed, 
if such vessel is available for purchase at a reasonable cost, as 
determined by the Secretary. 
‘‘(C) The Secretary may not use the authority under this para-
graph to purchase more than two foreign constructed ships. 
‘‘(D) The Secretary shall ensure that the initial conversion, 
or modernization of any vessel purchased under the authority of 
subparagraph (A) occurs in a shipyard located in the United States. 
‘‘(E) Not later than 30 days after the purchase of any vessel 
using the authority under this paragraph, the Secretary, in con-
sultation with the Maritime Administrator, shall submit to the 
congressional defense committees a report that contains each of 
the following with respect to such purchase: 
‘‘(i) The date of the purchase. 
‘‘(ii) The price at which the vessel was purchased. 
‘‘(iii) The anticipated cost of modernization of the vessel. 
‘‘(iv) The proposed military utility of the vessel. 
‘‘(v) The proposed date on which the vessel will be available 
for use by the Ready Reserve. 
‘‘(vi) The contracting office responsible for the completion 
of the purchase. 
‘‘(vii) Certification that— 
‘‘(I) there was no vessel available for purchase at a 
reasonable price that was constructed in the United States; 
and 
‘‘(II) the used vessel purchased supports the recapital-
ization of the Ready Reserve Force component of the 
National Defense Reserve Fleet or the Military Sealift Com-
mand surge fleet.’’. 
(c) DEFINITION OF MARITIME SECURITY FLEET.—Subsection (k) 
of such section is amended by adding at the end the following 
new paragraph: 
‘‘(5) The term ‘Maritime Security Fleet’ means the fleet 
established under section 53102(a) of title 46.’’. 
(d) BUDGETING FOR CONSTRUCTION OF NAVAL VESSELS.—Section 
231 of title 10, United States Code, is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘year—’’ and inserting ‘‘year each of 
the following:’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘a plan’’ and inserting ‘‘A plan’’; 
(ii) by striking ‘‘combatant and support vessels 
for the Navy’’ and inserting ‘‘naval vessels’’; 
(iii) by striking the semicolon and inserting ‘‘for 
each of the following classes of ships:’’; and 
(iv) by adding at the end the following new sub-
paragraphs: 
‘‘(A) Combatant and support vessels. 
‘‘(B) Auxiliary vessels.’’; and 
(C) in paragraph (2), by striking ‘‘a certification’’ and 
inserting ‘‘A certification’’;
H. R. 2810—266 
(2) in subsection (b)(2)— 
(A) by redesignating subparagraphs (B) through (D) 
as subparagraphs (C) through (E), respectively; 
(B) by inserting after subparagraph (A) the following 
new subparagraph (B): 
‘‘(B) A detailed program for the construction of auxiliary 
vessels for the Navy over the next 30 fiscal years.’’; and 
(C) in subparagraph (E), as redesignated by subpara-
graph (A), by striking ‘‘subparagraph (C)’’ and inserting 
‘‘subparagraph (D)’’; and 
(3) in subsection (f), by adding at the end the following 
new paragraph: 
‘‘(5) The term ‘auxiliary vessel’ means any ship designed 
to operate in the open ocean in a variety of sea states to 
provide general support to either combatant forces or shore 
based establishments.’’. 
SEC. 1022. USE OF NATIONAL SEA-BASED DETERRENCE FUND FOR 
MULTIYEAR 
PROCUREMENT 
OF 
CERTAIN 
CRITICAL 
COMPONENTS. 
(a) IN GENERAL.—Subsection (i) of section 2218a of title 10, 
United States Code, is amended— 
(1) by striking ‘‘the common missile compartment’’ each 
place it appears and inserting ‘‘critical components’’; and 
(2) in paragraph (1), by striking ‘‘critical parts, components, 
systems, and subsystems’’ and inserting ‘‘critical components’’. 
(b) DEFINITION
OF CRITICAL COMPONENT.—Subsection (k) of 
such section is amended by adding at the end the following new 
paragraph: 
‘‘(3) The term ‘critical component’ means any of the fol-
lowing: 
‘‘(A) A common missile compartment component. 
‘‘(B) A spherical air flask. 
‘‘(C) An air induction diesel exhaust valve. 
‘‘(D) An auxiliary seawater valve. 
‘‘(E) A hovering valve. 
‘‘(F) A missile compensation valve. 
‘‘(G) A main seawater valve. 
‘‘(H) A launch tube. 
‘‘(I) A trash disposal unit. 
‘‘(J) A logistics escape trunk. 
‘‘(K) A torpedo tube. 
‘‘(L) A weapons shipping cradle weldment. 
‘‘(M) A control surface. 
‘‘(N) A launcher component. 
‘‘(O) A propulsor.’’. 
(c) CLERICAL AMENDMENT.—The subsection heading for sub-
section (i) of such section is amended by striking ‘‘OF THE COMMON 
MISSILE COMPARTMENT’’. 
SEC. 1023. OPERATIONAL READINESS OF LITTORAL COMBAT SHIPS 
ON EXTENDED DEPLOYMENT. 
Section 7310(a) of title 10, United States Code, is amended— 
(1) by inserting ‘‘UNDER JURISDICTION OF THE SECRETARY 
OF THE NAVY’’ in the subsection heading after ‘‘VESSELS’’; 
(2) by striking ‘‘A naval vessel (or any other vessel under 
the jurisdiction of the Secretary of the Navy)’’ and inserting 
‘‘(1) A naval vessel’’; and
H. R. 2810—267 
(3) by adding at the end the following new paragraph: 
‘‘(2)(A) Notwithstanding paragraph (1) and subject to subpara-
graph (B), in the case of a naval vessel classified as a Littoral 
Combat Ship and operating on deployment, corrective and preven-
tive maintenance or repair (whether intermediate or depot level) 
and facilities maintenance may be performed on the vessel— 
‘‘(i) in a foreign shipyard; 
‘‘(ii) at a facility outside of a foreign shipyard; or 
‘‘(iii) at any other facility convenient to the vessel. 
‘‘(B)(i) Corrective and preventive maintenance or repair may 
be performed on a vessel as described in subparagraph (A) if the 
work is performed by United States Government personnel or 
United States contractor personnel. 
‘‘(ii) Facilities maintenance may be performed by a foreign 
contractor on a vessel as described in subparagraph (A) only as 
approved by the Secretary of the Navy. 
‘‘(C) In this paragraph: 
‘‘(i) The term ‘corrective and preventive maintenance or 
repair’ means— 
‘‘(I) maintenance or repair actions performed as a result 
of a failure in order to return or restore equipment to 
acceptable performance levels; and 
‘‘(II) scheduled maintenance or repair actions to pre-
vent or discover functional failures. 
‘‘(ii) The term ‘facilities maintenance’ means preservation 
or corrosion control efforts and cleaning services. 
‘‘(D) This paragraph shall expire on September 30, 2020.’’. 
SEC. 1024. AVAILABILITY OF FUNDS FOR RETIREMENT OR INACTIVA-
TION OF TICONDEROGA-CLASS CRUISERS OR DOCK 
LANDING SHIPS. 
None of the funds authorized to be appropriated by this Act 
or otherwise made available for the Department of Defense for 
fiscal year 2018 may be obligated or expended— 
(1) to retire, prepare to retire, or inactivate a cruiser or 
dock landing ship; or 
(2) to place more than six cruisers and one dock landing 
ship in the modernization program under section 1026(a)(2) 
of the Carl Levin and Howard P. ‘‘Buck’’ McKeon National 
Defense Authorization Act for Fiscal Year 2015 (Public Law 
113–291; 128 Stat. 3490). 
SEC. 1025. POLICY OF THE UNITED STATES ON MINIMUM NUMBER 
OF BATTLE FORCE SHIPS. 
(a) POLICY.—It shall be the policy of the United States to 
have available, as soon as practicable, not fewer than 355 battle 
force ships, comprised of the optimal mix of platforms, with funding 
subject to the availability of appropriations or other funds. 
(b) BATTLE FORCE SHIPS DEFINED.—In this section, the term 
‘‘battle force ship’’ has the meaning given the term in Secretary 
of the Navy Instruction 5030.8C. 
SEC. 1026. SURVEYING SHIPS. 
(a) SURVEYING SHIP REQUIREMENT.—Not later than 120 days 
after the date of the enactment of this Act, the Chief of Naval 
Operations shall submit to the congressional defense committees 
a report setting forth a force structure assessment that establishes 
a surveying ship requirement. The Chief of Naval Operations shall
H. R. 2810—268 
conduct the assessment for purposes of the report, and may limit 
the assessment to surveying ships. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘surveying ship’’ has the meaning given the 
term in Secretary of the Navy Instruction 5030.8C. 
(2) The term ‘‘force structure assessment’’ has the meaning 
given the term in Chief of Naval Operations Instruction 
3050.27. 
Subtitle D—Counterterrorism 
SEC. 1031. MODIFICATION OF AUTHORITY ON SUPPORT OF SPECIAL 
OPERATIONS TO COMBAT TERRORISM. 
(a) OVERSIGHT OF SUPPORT.—Section 127e of title 10, United 
States Code, is amended— 
(1) by redesignating subsection (g) as subsection (h); and 
(2) by inserting after subsection (f) the following new sub-
section (g): 
‘‘(g) OVERSIGHT BY ASD FOR SOLIC.—The Assistant Secretary 
of Defense for Special Operations and Low-Intensity Conflict shall 
have primary responsibility within the Office of the Secretary of 
Defense for oversight of policies and programs for support author-
ized by this section.’’. 
(b) REPORT SUBMITTAL MATTERS.—Subsection (h) of such sec-
tion, as redesignated by subsection (a)(1) of this section, is 
amended— 
(1) in paragraph (1), by striking ‘‘March 1 each year’’ and 
inserting ‘‘120 days after the last day of each fiscal year’’; 
and 
(2) in paragraph (2)— 
(A) by striking ‘‘September 1 each year’’ and inserting 
‘‘six months after the date of the submittal of the report 
most recently submitted under paragraph (1)’’; and 
(B) by inserting ‘‘under this paragraph’’ after ‘‘in which 
the report’’. 
SEC. 1032. TERMINATION OF REQUIREMENT TO SUBMIT ANNUAL 
BUDGET JUSTIFICATION DISPLAY FOR DEPARTMENT OF 
DEFENSE COMBATING TERRORISM PROGRAM. 
Section 229 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(e) TERMINATION.—The requirement to submit a budget jus-
tification display under this section shall terminate on December 
31, 2020.’’. 
SEC. 1033. PROHIBITION ON USE OF FUNDS FOR TRANSFER OR 
RELEASE OF INDIVIDUALS DETAINED AT UNITED STATES 
NAVAL STATION, GUANTANAMO BAY, CUBA TO THE 
UNITED STATES. 
No amounts authorized to be appropriated or otherwise made 
available for the Department of Defense may be used during the 
period beginning on the date of the enactment of this Act and 
ending on December 31, 2018, to transfer, release, or assist in 
the transfer or release to or within the United States, its territories, 
or possessions of Khalid Sheikh Mohammed or any other detainee 
who—
H. R. 2810—269 
(1) is not a United States citizen or a member of the 
Armed Forces of the United States; and 
(2) is or was held on or after January 20, 2009, at United 
States Naval Station, Guantanamo Bay, Cuba, by the Depart-
ment of Defense. 
SEC. 1034. PROHIBITION ON USE OF FUNDS TO CONSTRUCT OR MODIFY 
FACILITIES 
IN 
THE 
UNITED 
STATES 
TO 
HOUSE 
DETAINEES TRANSFERRED FROM UNITED STATES NAVAL 
STATION, GUANTANAMO BAY, CUBA. 
(a) IN GENERAL.—No amounts authorized to be appropriated 
or otherwise made available for the Department of Defense may 
be used during the period beginning on the date of the enactment 
of this Act and ending on December 31, 2018, to construct or 
modify any facility in the United States, its territories, or posses-
sions to house any individual detained at Guantanamo for the 
purposes of detention or imprisonment in the custody or under 
the control of the Department of Defense. 
(b) EXCEPTION.—The prohibition in subsection (a) shall not 
apply to any modification of facilities at United States Naval Sta-
tion, Guantanamo Bay, Cuba. 
(c) INDIVIDUAL DETAINED AT GUANTANAMO DEFINED.—In this 
section, the term ‘‘individual detained at Guantanamo’’ has the 
meaning given that term in section 1034(f)(2) of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114– 
92; 129 Stat. 971; 10 U.S.C. 801 note). 
SEC. 1035. PROHIBITION ON USE OF FUNDS FOR TRANSFER OR 
RELEASE OF INDIVIDUALS DETAINED AT UNITED STATES 
NAVAL STATION, GUANTANAMO BAY, CUBA, TO CERTAIN 
COUNTRIES. 
No amounts authorized to be appropriated or otherwise made 
available for the Department of Defense may be used during the 
period beginning on the date of the enactment of this Act and 
ending on December 31, 2018, to transfer, release, or assist in 
the transfer or release of any individual detained in the custody 
or under the control of the Department of Defense at United States 
Naval Station, Guantanamo Bay, Cuba, to the custody or control 
of any country, or any entity within such country, as follows: 
(1) Libya. 
(2) Somalia. 
(3) Syria. 
(4) Yemen. 
SEC. 1036. PROHIBITION ON USE OF FUNDS TO CLOSE OR RELINQUISH 
CONTROL OF UNITED STATES NAVAL STATION, GUANTA-
NAMO BAY, CUBA. 
None of the funds authorized to be appropriated or otherwise 
made available for the Department of Defense for fiscal year 2018 
may be used— 
(1) to close or abandon United States Naval Station, 
Guantanamo Bay, Cuba; 
(2) to relinquish control of Guantanamo Bay to the Republic 
of Cuba; or 
(3) to implement a material modification to the Treaty 
Between the United States of America and Cuba signed at 
Washington, D.C. on May 29, 1934, that constructively closes 
United States Naval Station, Guantanamo Bay.
H. R. 2810—270 
SEC. 1037. SENSE OF CONGRESS REGARDING PROVIDING FOR TIMELY 
VICTIM AND FAMILY TESTIMONY IN MILITARY COMMIS-
SION TRIALS. 
It is the sense of Congress that in the interests of justice, 
efficiency, and providing closure to victims of terrorism and their 
families, military judges overseeing military commissions in United 
States Naval Station, Guantanamo Bay, Cuba, should consider 
making arrangements to take recorded testimony from victims and 
their families should they wish to provide testimony before such 
a commission. 
SEC. 1038. REPORT ON PUBLIC AVAILABILITY OF MILITARY COMMIS-
SIONS PROCEEDINGS. 
(a) GAO STUDY.—The Comptroller General of the United States 
shall conduct a study on the feasibility and advisability of expanding 
the public availability of military commissions proceedings that 
are made open to the public. 
(b) REPORT TO CONGRESS.— 
(1) INTERIM REPORT.—Not later than April 1, 2018, the 
Comptroller General shall submit to the Committees on Armed 
Services of the Senate and of the House of Representatives 
a report containing the interim findings of the Comptroller 
General pursuant to the study required by subsection (a). 
(2) FINAL 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 Senate 
and of the House of Representatives a final report on the 
findings and recommendations of the Comptroller General 
pursuant to such study. 
(3) FORM OF REPORTS.—The reports required by this sub-
section shall be submitted in unclassified form, but may contain 
a classified annex. 
Subtitle E—Miscellaneous Authorities and 
Limitations 
SEC. 1041. LIMITATION ON EXPENDITURE OF FUNDS FOR EMERGENCY 
AND EXTRAORDINARY EXPENSES FOR INTELLIGENCE 
AND COUNTER-INTELLIGENCE ACTIVITIES. 
(a) LIMITATION.—Subsection (c) of section 127 of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph: 
‘‘(4)(A) Notwithstanding paragraph (1), funds may not be obli-
gated or expended in an amount in excess of $100,000 under the 
authority of subsection (a) or (b) for intelligence or counter-intel-
ligence activities until the Secretary of Defense has notified the 
congressional defense committees and the congressional intelligence 
committees of the intent to obligate or expend the funds and 15 
days have elapsed since the date of the notification. 
‘‘(B) The Secretary of Defense may waive subparagraph (A) 
if the Secretary determines that such a waiver is necessary due 
to extraordinary circumstances that affect the national security 
of the United States. If the Secretary issues a waiver under this 
subparagraph, the Secretary shall submit to the congressional 
defense and congressional intelligence committees, by not later
H. R. 2810—271 
than 48 hours after issuing the waiver, written notice of and jus-
tification for the waiver.’’. 
(b) ANNUAL
REPORT.—Subsection (d) of such section is 
amended— 
(1) by striking ‘‘Not later’’ and inserting ‘‘(1) Not later’’; 
(2) by striking ‘‘to the congressional defense committees’’ 
and all that follows through the period at the end and inserting 
an em dash; and 
(3) by adding at the end the following: 
‘‘(A) to the congressional defense committees a report on 
all expenditures during the preceding fiscal year under sub-
sections (a) and (b); and 
‘‘(B) to the congressional intelligence committees a report 
on expenditures relating to intelligence and counter-intelligence 
during the preceding fiscal year under subsections (a) and 
(b). 
‘‘(2) Each report required to be submitted under paragraph 
(1) shall include a detailed explanation, by category of activity 
and approving authority (the Secretary of Defense, the Inspector 
General of the Department of Defense, and the Secretary of a 
military department), of the expenditures during the preceding 
fiscal year.’’. 
(c) DEFINITION.—Such section is further amended by adding 
at the end the following new subsection: 
‘‘(e) DEFINITION
OF CONGRESSIONAL INTELLIGENCE COMMIT-
TEES.—In this section, the term ‘congressional intelligence commit-
tees’ means the Permanent Select Committee on Intelligence of 
the House of Representatives and the Select Committee on Intel-
ligence of the Senate.’’. 
(d) REPORT
ON
INTELLIGENCE
AND
COUNTER-INTELLIGENCE 
FUNDING AUTHORITIES.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense and intelligence committees a report 
describing current and, if necessary, any required, funding authori-
ties to sustain recurring expenses for intelligence and counter- 
intelligence activities in lieu of section 127 of title 10, United 
States Code. Such report shall include a description of the potential 
benefits and negative consequences of the codification of a distinct 
authority for such purposes. 
SEC. 1042. MATTERS RELATING TO THE SUBMITTAL OF FUTURE-YEARS 
DEFENSE PROGRAMS. 
(a) TIMING OF SUBMITTAL TO CONGRESS.—Subsection (a) of sec-
tion 221 of title 10, United States Code, is amended by striking 
‘‘at or about the time that’’ and inserting ‘‘not later than five 
days after the date on which’’. 
(b) MANNER AND FORM OF SUBMITTAL.—Such section is further 
amended by adding at the end the following new subsection: 
‘‘(d)(1) The Secretary of Defense shall make available to Con-
gress, the Congressional Budget Office, the Comptroller General 
of the United States, and the Congressional Research Service each 
future-years defense program under this section as follows: 
‘‘(A) By making such program available electronically in 
the form of an unclassified electronic database. 
‘‘(B) By delivering printed copies of such program to the 
congressional defense committees.