H. R. 4310—417 
provided for, for the Office of the Inspector General of the Depart-
ment of Defense, as specified in the funding table in section 4501. 
SEC. 1406. DEFENSE HEALTH PROGRAM. 
Funds are hereby authorized to be appropriated for fiscal year 
2013 for the Defense Health Program, as specified in the funding 
table in section 4501, for use of the Armed Forces and other activi-
ties and agencies of the Department of Defense in providing for 
the health of eligible beneficiaries. 
Subtitle B—National Defense Stockpile 
SEC. 1411. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
FUNDS. 
(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 2013, 
the National Defense Stockpile Manager may obligate up to 
$44,899,227 of the funds in the National Defense Stockpile Trans-
action Fund established under subsection (a) of section 9 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h) 
for the authorized uses of such funds under subsection (b)(2) of 
such section, including the disposal of hazardous materials that 
are environmentally sensitive. 
(b) ADDITIONAL OBLIGATIONS.—The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager notifies 
Congress that extraordinary or emergency conditions necessitate 
the additional obligations. The National Defense Stockpile Manager 
may make the additional obligations described in the notification 
after the end of the 45-day period beginning on the date on which 
Congress receives the notification. 
(c) LIMITATIONS.—The authorities provided by this section shall 
be subject to such limitations as may be provided in appropriations 
Acts. 
SEC. 1412. ADDITIONAL SECURITY OF STRATEGIC MATERIALS SUPPLY 
CHAINS. 
Section 2(b) of the Strategic and Critical Materials Stock Piling 
Act (50 U.S.C. 98a(b)) is amended by inserting ‘‘or a single point 
of failure’’ after ‘‘foreign sources’’. 
SEC. 1413. RELEASE OF MATERIALS NEEDED FOR NATIONAL DEFENSE 
PURPOSES FROM THE STRATEGIC AND CRITICAL MATE-
RIALS STOCKPILE. 
(a) AUTHORITY FOR PRESIDENT TO DELEGATE SPECIAL DISPOSAL 
AUTHORITY OF PRESIDENT FOR RELEASE FOR NATIONAL DEFENSE 
PURPOSES.—Section 7(a) of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98f(a)) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the end; 
(2) in paragraph (2), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(3) on the order of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, if the President has 
designated the Under Secretary to have authority to issue 
release orders under this subsection and, in the case of any 
such order, if the Under Secretary determines that the release
H. R. 4310—418 
of such materials is required for use, manufacture, or produc-
tion for purposes of national defense.’’. 
(b) EXCLUSION FROM DELEGATION LIMITATION.—Section 16 of 
such Act (50 U.S.C. 98h-7) is amended by striking ‘‘sections 7 
and 13’’ each place it appears and inserting ‘‘sections 7(a)(1) and 
13’’. 
Subtitle C—Chemical Demilitarization 
Matters 
SEC. 1421. SUPPLEMENTAL CHEMICAL AGENT AND MUNITIONS 
DESTRUCTION TECHNOLOGIES AT PUEBLO CHEMICAL 
DEPOT, COLORADO, AND BLUE GRASS ARMY DEPOT, KEN-
TUCKY. 
(a) SUPPLEMENTAL DESTRUCTION TECHNOLOGIES.—Section 1412 
of the Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521) is amended— 
(1) in subsection (i)(2), by adding at the end the following 
new subparagraph: 
‘‘(E) A description of any supplemental chemical agent and 
munitions destruction technologies used at Pueblo Chemical 
Depot, Colorado, and Blue Grass Army Depot, Kentucky, during 
the period covered by the report, including explosive destruction 
technologies and any technologies developed for the treatment 
and disposal of energetic or agent hydrolystates.’’; 
(2) in subsection (j)(2), by adding at the end the following 
new subparagraph: 
‘‘(E) A description and justification for the use of any 
supplemental chemical agent and munitions destruction tech-
nologies used at Pueblo Chemical Depot, Colorado, and Blue 
Grass Army Depot, Kentucky, during the period covered by 
the report, including explosive destruction technologies and 
any technologies developed for the treatment and disposal of 
energetic or agent hydrolysates. Such description and justifica-
tion shall outline— 
‘‘(i) the need for the use of supplemental destruction 
technologies and technologies developed for the treatment 
and disposal of energetic or agent hydrolystates; 
‘‘(ii) site-by-site descriptions of the problematic aspects 
of the stockpile requiring the use of supplemental tech-
nologies; 
‘‘(iii) the type of supplemental destruction technologies 
used at each site; and 
‘‘(iv) any planned future use of other supplemental 
destruction technologies for each site.’’; 
(3) by redesignating subsection (o) as subsection (p); and 
(4) by inserting after subsection (n) the following new sub-
section (o): 
‘‘(o) SUPPLEMENTAL DESTRUCTION TECHNOLOGIES.—In deter-
mining the technologies to supplement the neutralization destruc-
tion of the stockpile of lethal chemical agents and munitions at 
Pueblo Chemical Depot, Colorado, and Blue Grass Army Depot, 
Kentucky, the Secretary of Defense may consider the following: 
‘‘(1) Explosive Destruction Technologies.
H. R. 4310—419 
‘‘(2) Any technologies developed for the treatment and dis-
posal of energetic or agent hydrolysates, if problems with the 
current on-site treatment of hydrolysates are encountered.’’. 
(b) REPEAL
OF SUPERSEDED PROVISION.—Section 151 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106–398; 114 Stat. 
1645A–30) is repealed. 
Subtitle D—Other Matters 
SEC. 1431. REDUCTION OF UNOBLIGATED BALANCES WITHIN THE PEN-
TAGON RESERVATION MAINTENANCE REVOLVING FUND. 
Not later than 60 days after the date of the enactment of 
this Act, the Secretary of Defense shall transfer $5,000,000 from 
the unobligated balances of the Pentagon Reservation Maintenance 
Revolving Fund established under section 2674(e) of title 10, United 
States Code, to the Miscellaneous Receipts Fund of the United 
States Treasury. 
SEC. 1432. AUTHORITY FOR TRANSFER OF FUNDS TO JOINT DEPART-
MENT OF DEFENSE-DEPARTMENT OF VETERANS AFFAIRS 
MEDICAL FACILITY DEMONSTRATION FUND FOR CAPTAIN 
JAMES A. LOVELL HEALTH CARE CENTER, ILLINOIS. 
(a) AUTHORITY FOR TRANSFER OF FUNDS.—Of the funds author-
ized to be appropriated for section 1406 and available for the 
Defense 
Health 
Program 
for 
operation 
and 
maintenance, 
$139,204,000 may be transferred by the Secretary of Defense to 
the Joint Department of Defense–Department of Veterans Affairs 
Medical Facility Demonstration Fund established by subsection 
(a)(1) of section 1704 of the National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2571). For 
purposes of subsection (a)(2) of such section 1704, any funds so 
transferred shall be treated as amounts authorized and appro-
priated specifically for the purpose of such a transfer. 
(b) USE OF TRANSFERRED FUNDS.—For the purposes of sub-
section (b) of such section 1704, facility operations for which funds 
transferred under subsection (a) may be used are operations of 
the Captain James A. Lovell Federal Health Care Center, consisting 
of the North Chicago Veterans Affairs Medical Center, the Navy 
Ambulatory Care Center, and supporting facilities designated as 
a combined Federal medical facility under an operational agreement 
covered by section 706 of the Duncan Hunter National Defense 
Authorization Act for Fiscal Year 2009 (Public Law 110–417; 122 
Stat. 4500). 
SEC. 1433. AUTHORIZATION OF APPROPRIATIONS FOR ARMED FORCES 
RETIREMENT HOME. 
There is hereby authorized to be appropriated for fiscal year 
2013 from the Armed Forces Retirement Home Trust Fund the 
sum of $67,590,000 for the operation of the Armed Forces Retire-
ment Home. 
SEC. 1434. CEMETERIAL EXPENSES. 
Funds are hereby authorized to be appropriated for the Depart-
ment of the Army for fiscal year 2013 for cemeterial expenses, 
not otherwise provided for, in the amount of $173,800,000.
H. R. 4310—420 
SEC. 1435. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUP-
PORT TEAMS. 
(a) IN GENERAL.—Section 1403 of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (Public Law 107– 
314; 116 Stat. 2676; 10 U.S.C. 12310 note) is amended— 
(1) by striking subsection (b); 
(2) by redesignating subsection (c) as subsection (e); and 
(3) by inserting after subsection (a) the following new sub-
sections (b), (c), and (d): 
‘‘(b) ESTABLISHMENT OF FURTHER ADDITIONAL TEAMS.—The Sec-
retary of Defense is authorized to have established two additional 
teams designated as Weapons of Mass Destruction Civil Support 
Teams, beyond the 55 teams required in subsection (a), if— 
‘‘(1) the Secretary of Defense has made the certification 
provided for in section 12310(c)(5) of title 10, United States 
Code, with respect to each of such additional teams before 
December 31, 2011; and 
‘‘(2) the establishment of such additional teams does not 
require an increase in authorized personnel levels above the 
numbers authorized as of the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2013. 
‘‘(c) LIMITATION OF ESTABLISHMENT OF FURTHER TEAMS.—No 
Weapons of Mass Destruction Civil Support Team may be estab-
lished beyond the number authorized by subsections (a) and (b) 
unless— 
‘‘(1) the Secretary submits to Congress a request for 
authority to establish such team, including a detailed justifica-
tion for its establishment; and 
‘‘(2) the establishment of such team is specifically author-
ized by a law enacted after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2013. 
‘‘(d) NOTIFICATION
OF
DISESTABLISHMENT
OF
TEAMS.—No 
Weapons of Mass Destruction Civil Support Team established 
pursuant to this section may be disestablished unless, by not later 
than 90 days before the date on which such team is disestablished, 
the Secretary submits to the congressional defense committees 
notice of the proposed disestablishment of the team and the date 
on which the disestablishment is proposed to take place.’’. 
(b) REPORT.—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 the Weapons 
of Mass Destruction Civil Support Teams. The report shall include 
the following: 
(1) A detailed description of risk management criteria and 
considerations to be used in determining the optimal number 
and location of Weapons of Mass Destruction Civil Support 
Teams. 
(2) A description of the operational and training activities 
conducted by the Weapons of Mass Destruction Civil Support 
Teams during each of fiscal years 2010, 2011, and 2012, and 
of such activities planned for fiscal year 2013. 
(3) An assessment of the optimal number and location 
of Weapons of Mass Destruction Civil Support Teams in light 
of the information under paragraphs (1) and (2). 
(4) A comparative analysis of the cost of establishing 
Weapons of Mass Destruction Civil Support Teams in the 
reserve components of the Armed Forces (other than the
H. R. 4310—421 
National Guard) with the cost of establishing Weapons of Mass 
Destruction Civil Support Teams in the National Guard. 
(5) A description of the portion of the costs of Weapons 
of Mass Destruction Civil Support Teams that is currently 
borne by the States. 
(6) Any other matter that the Secretary determines is 
appropriate. 
TITLE XV—AUTHORIZATION OF ADDI-
TIONAL APPROPRIATIONS FOR OVER-
SEAS CONTINGENCY OPERATIONS 
Subtitle A—Authorization of Additional Appropriations 
Sec. 1501. Purpose. 
Sec. 1502. Procurement. 
Sec. 1503. Research, development, test, and evaluation. 
Sec. 1504. Operation and maintenance. 
Sec. 1505. Military personnel. 
Sec. 1506. Working capital funds. 
Sec. 1507. Defense Health Program. 
Sec. 1508. Drug Interdiction and Counter-Drug Activities, Defense-wide. 
Sec. 1509. Defense Inspector General. 
Subtitle B—Financial Matters 
Sec. 1521. Treatment as additional authorizations. 
Sec. 1522. Special transfer authority. 
Subtitle C—Limitations and Other Matters 
Sec. 1531. Afghanistan Security Forces Fund. 
Sec. 1532. Joint Improvised Explosive Device Defeat Fund. 
Sec. 1533. One-year extension of project authority and related requirements of 
Task Force for Business and Stability Operations in Afghanistan. 
Sec. 1534. Plan for transition in funding of United States Special Operations Com-
mand from supplemental funding for overseas contingency operations to 
recurring funding under the future-years defense program. 
Sec. 1535. Assessment of counter-improvised explosive device training and intel-
ligence activities of the Joint Improvised Explosive Device Defeat Orga-
nization and national and military intelligence Organizations. 
Subtitle A—Authorization of Additional 
Appropriations 
SEC. 1501. PURPOSE. 
The purpose of this subtitle is to authorize appropriations for 
the Department of Defense for fiscal year 2013 to provide additional 
funds for overseas contingency operations being carried out by 
the Armed Forces. 
SEC. 1502. PROCUREMENT. 
Funds are hereby authorized to be appropriated for fiscal year 
2013 for procurement accounts for the Army, the Navy and the 
Marine Corps, the Air Force, and Defense-wide activities, as speci-
fied in the funding table in section 4102. 
SEC. 1503. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION. 
Funds are hereby authorized to be appropriated for fiscal year 
2013 for the use of the Department of Defense for research, develop-
ment, test, and evaluation, as specified in the funding table in 
section 4202.
H. R. 4310—423 
(2) LIMITATION.—The total amount of authorizations that 
the Secretary may transfer under the authority of this sub-
section may not exceed $3,000,000,000. 
(b) TERMS AND CONDITIONS.—Transfers under this section shall 
be subject to the same terms and conditions as transfers under 
section 1001. 
(c) ADDITIONAL AUTHORITY.—The transfer authority provided 
by this section is in addition to the transfer authority provided 
under section 1001. 
Subtitle C—Limitations and Other Matters 
SEC. 1531. AFGHANISTAN SECURITY FORCES FUND. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) it is the responsibility of the Commander, International 
Security Assistance Force/Commander, United States Forces— 
Afghanistan to ensure the security of members of the Armed 
Forces deployed to Afghanistan and to mitigate internal threats 
to such forces to the greatest extent possible, while continuing 
to meet the objectives of the International Security Assistance 
Force mission in Afghanistan, including the training and equip-
ping of the Afghan National Security Forces so that they may 
provide for their own security; 
(2) the Afghan Public Protection Force must meet and 
maintain key standards to provide force protection for members 
of the Armed Forces; and 
(3) if the Secretary of Defense determines that the Afghan 
Public Protection Force is not meeting such standards, the 
Secretary should take all appropriate actions to provide force 
protection for members of the Armed Forces, including, if nec-
essary, having the Armed Forces provide for their own force 
protection. 
(b) CONTINUATION OF EXISTING LIMITATIONS ON USE OF FUNDS 
IN FUND.—Funds available to the Department of Defense for the 
Afghanistan Security Forces Fund for fiscal year 2013 shall be 
subject to the conditions contained in subsections (b) through (g) 
of section 1513 of the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 122 Stat. 428), as amended by 
section 1531(b) of the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111–383; 124 Stat. 4424). 
(c) AFGHAN PUBLIC PROTECTION FORCE.— 
(1) SEMI-ANNUAL CERTIFICATIONS.—Not later than 90 days 
after the date of the enactment of this Act, and semiannually 
thereafter through December 31, 2014, the Secretary of Defense 
shall certify in writing to the congressional defense committees 
the elements specified in paragraph (3). 
(2) REPORT
FOLLOWING
INABILITY
TO
CERTIFY
ANY
ELE-
MENT.—If the Secretary determines that an element specified 
in paragraph (3) cannot be certified in a report required by 
paragraph (1), the Secretary shall submit to the congressional 
defense committees a report setting forth the following: 
(A) An explanation why such element cannot be cer-
tified. 
(B) A description of the actions, if any, that are being 
taken to mitigate the risk associated with such element.
H. R. 4310—424 
(C) A description of the specific actions being taken 
to achieve the certification of such element, to the extent 
practicable. 
(3) CERTIFICATION ELEMENTS.—The elements of each certifi-
cation specified in this paragraph are the following: 
(A) That each agreement between the United States 
and the Government of Afghanistan, or any contract 
between the Department of Defense and a contractor that 
subcontracts to the Afghan Public Protection Force, con-
tains— 
(i) uniform standards that ensure a consistent level 
of security; 
(ii) standard procedures and institutional mecha-
nisms for dispute resolution; 
(iii) requirements for the Afghan Public Protection 
Force to adhere to the Afghan Public Protection Force 
Code of Conduct and applicable international stand-
ards, such as the Montreux Document, and the Inter-
national Code of Conduct for private security service 
providers; and 
(iv) provisions for the United States, or the con-
tractor, to take actions to address the failure of the 
Afghan Public Protection Force to perform in a manner 
consistent with the Afghan Public Protection Force 
Code of Conduct and applicable international stand-
ards. 
(B) That all Afghan Public Protection Force recruits 
and personnel are vetted under procedures consistent with 
the vetting standards of the United States for the Afghan 
National Security Forces as of the date of the enactment 
of this Act. 
(C) That all Afghan Public Protection Force recruits 
and personnel are biometrically screened in an independent 
fashion by the United States or contractors. 
(D) In the case of contracts to provide force protection 
at installations in Afghanistan where the Armed Forces 
are garrisoned or housed, that the Commander, Inter-
national Security and Assistance Force/Commander, United 
States Forces—Afghanistan, or designees, are provided the 
ability to— 
(i) approve or disapprove arming authorization for 
Afghan Public Protection Force personnel performing 
activities at such installations; and 
(ii) account for and maintain records of Afghan 
Public Protection Force personnel authorized to per-
form activities at such installations. 
(E) That the International Security and Assistance 
Force Command has designated a centralized entity within 
that Command authorized to provide oversight of coalition 
activities relating to the Afghan Public Protection Force, 
including consultations with the Afghanistan Ministry of 
Interior regarding rules on the use of force, violations of 
contract, and other performance issues. 
(F) That there is a mechanism in place sufficient to— 
(i) account for the transfer of any United States 
Government-owned, contractor-acquired defense arti-
cles to the Afghan Public Protection Force; and
H. R. 4310—425 
(ii) conduct end-use monitoring, of such defense 
articles, including an inventory of the existence and 
completeness of any such defense articles. 
(d) REPORTS.— 
(1) INITIAL ASSESSMENT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report 
setting forth an assessment of the Afghan Public Protection 
Force. 
(2) SUBSEQUENT ASSESSMENTS.—On a semiannual basis fol-
lowing the submittal of the report required by paragraph (1) 
through September 30, 2014, the Secretary shall submit to 
the congressional defense committees an assessment of the 
progress in the development of the Afghan Public Protection 
Force during the preceding six months. 
(3) ELEMENTS.—Each report under this subsection shall 
include the following: 
(A) A description of the size and composition of the 
Afghan Public Protection Force. 
(B) An assessment of the recruiting and training for 
the Afghan Public Protection Force. 
(C) An assessment of the ability of the Afghan Public 
Protection Force to perform its tasks and missions. 
(D) A description of measures of effectiveness for evalu-
ating the Afghan Public Protection Force. 
(E) Any recommendations provided by the United 
States to the Afghanistan Ministry of Interior to improve 
the performance of the Afghan Public Protection Force. 
(F) A description of any instances of termination of 
contracts with the Afghan Public Protection Force. 
(G) An assessment of the ability of the United States, 
or contractors, to hold the Afghan Public Protection Force 
accountable for gross or repeated violations. 
(H) A description of the status of United States Govern-
ment-owned, contractor-acquired defense articles provided 
to the Afghan Public Protection Force. 
(4) ADDITIONAL
ELEMENTS
DURING
FISCAL
YEAR
2014 
REPORTS.—Each report under paragraph (2) submitted during 
fiscal year 2014 shall include a plan, and any updates, on 
the post-2014 disposition of the Afghan Public Protection Force. 
(5) SUBMITTAL WITH OTHER REPORTS.—Each report under 
paragraph (2) may be submitted as part of the report on 
progress toward security and stability in Afghanistan that is 
submitted under sections 1230 and 1231 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public Law 
110–181; 122 Stat. 385, 390). 
(e) PLAN FOR USE OF AFGHANISTAN SECURITY FORCES FUND 
THROUGH FISCAL YEAR 2017.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a plan for using 
funds available to the Department of Defense to provide assistance 
to the security forces of Afghanistan through the Afghanistan Secu-
rity Forces Fund through September 30, 2017. 
(f) AGREEMENTS.—The Secretary of Defense shall submit to 
the congressional committees a copy of each agreement entered 
into by the United States and Afghanistan for services of the
H. R. 4310—426 
Afghan Public Protection Force for the Department of Defense not 
later than 30 days after entry into such agreement. 
SEC. 1532. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND. 
(a) USE
AND TRANSFER
OF FUNDS.—Subsections (b) and (c) 
of section 1514 of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2439), 
as in effect before the amendments made by section 1503 of the 
Duncan Hunter National Defense Authorization Act for Fiscal Year 
2009 (Public Law 110–417; 122 Stat. 4649), shall apply to the 
funds made available to the Department of Defense for the Joint 
Improvised Explosive Device Defeat Fund for fiscal year 2013. In 
providing prior notice to the congressional defense committees of 
the obligation of funds from the Joint Improvised Explosive Device 
Defeat Fund for such fiscal year, as required by paragraph (4) 
of such subsection (c), the Secretary of Defense shall include the 
associated analysis of alternatives conducted in the process of taking 
action to initiate any project for which the total obligation of funds 
from the Fund will exceed $10,000,000. 
(b) MONTHLY OBLIGATIONS AND EXPENDITURE REPORTS.—Not 
later than 15 days after the end of each month of fiscal year 
2013, the Secretary of Defense shall provide to the congressional 
defense committees a report on the Joint Improvised Explosive 
Device Defeat Fund explaining monthly commitments, obligations, 
and expenditures by line of operation. 
(c) INTERDICTION OF IMPROVISED EXPLOSIVE DEVICE PRECURSOR 
CHEMICALS.— 
(1) AVAILABILITY OF CERTAIN FISCAL YEAR 2013 FUNDS.— 
Of the funds made available to the Department of Defense 
for the Joint Improvised Explosive Device Defeat Fund for 
fiscal year 2013, $15,000,000 may be available to the Secretary 
of Defense to provide training, equipment, supplies, and serv-
ices to ministries and other entities of the Government of 
Pakistan that the Secretary has identified as critical for coun-
tering the flow of improvised explosive device precursor chemi-
cals from Pakistan to locations in Afghanistan. 
(2) PROVISION
THROUGH
OTHER
US
AGENCIES.—If jointly 
agreed upon by the Secretary of Defense and the head of 
another department or agency of the United States Govern-
ment, the Secretary of Defense may transfer funds available 
under paragraph (1) to such department or agency for the 
provision by such department or agency of training, equipment, 
supplies, and services to ministries and other entities of the 
Government of Pakistan as described in that paragraph. 
(3) NOTICE TO CONGRESS.—Funds may not be used under 
the authority in paragraph (1) until 15 days after the date 
on which the Secretary of Defense submits to the congressional 
defense committees a notice— 
(A) describing the training, equipment, supplies, and 
services to be provided using such funds; and 
(B) evaluating the effectiveness of the efforts by the 
Government of Pakistan to counter the flow of improvised 
explosive device precursor chemicals from Pakistan to loca-
tions in Afghanistan. 
(4) EXPIRATION.—The authority provided by this subsection 
expires on December 31, 2013.
H. R. 4310—427 
SEC. 1533. ONE-YEAR EXTENSION OF PROJECT AUTHORITY AND 
RELATED REQUIREMENTS OF TASK FORCE FOR BUSINESS 
AND STABILITY OPERATIONS IN AFGHANISTAN. 
(a) EXTENSION.—Subsection (a) of section 1535 of the Ike 
Skelton National Defense Authorization Act for Fiscal Year 2011 
(Public Law 111–383; 124 Stat. 4426), as amended by section 1534 
of the National Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1658), is further amended— 
(1) in paragraph (6), by striking ‘‘October 31, 2011, and 
October 31, 2012’’ and inserting ‘‘October 31, 2011, October 
31, 2012, and October 31, 2013’’; and 
(2) in paragraph (7)— 
(A) by striking ‘‘provided in’’ and inserting ‘‘to obligate 
funds for projects under’’; and 
(B) by striking ‘‘September 30, 2012’’ and inserting 
‘‘September 30, 2013’’. 
(b) SCOPE
OF PROJECTS.—Paragraph (3) of such subsection, 
as so amended, is further amended by striking ‘‘focus on improving 
the commercial viability of’’ and inserting ‘‘complement’’. 
(c) FUNDING.—Paragraph (4) of such subsection, as so amended, 
is further amended— 
(1) by striking ‘‘The Secretary’’ and inserting the following: 
‘‘(A) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘The amount’’ and all that follows through 
‘‘appropriate congressional committees.’’ and inserting the fol-
lowing: 
‘‘(B) LIMITATION.—The amount of funds obligated under 
the authority of subparagraph (A)— 
‘‘(i) may not exceed $150,000,000 for fiscal year 
2012, except that not more than 50 percent of such 
amount of funds may be obligated until the Secretary 
of Defense submits to the appropriate congressional 
committees the plan required by subsection (b); and 
‘‘(ii) may not exceed $93,000,000 for fiscal year 
2013, except that not more than $50,000,000 of such 
amount of funds may be obligated until the Secretary 
of Defense submits to the appropriate congressional 
committees the report required by paragraph (7) of 
this subsection.’’; and 
(3) by striking ‘‘The funds’’ and inserting the following: 
‘‘(C) AVAILABILITY.—The funds’’. 
(d) REPORT ON IMPLEMENTATION OF TRANSITION ACTION PLAN.— 
Subsection (a) of section 1535 of the Ike Skelton National Defense 
Authorization Act for Fiscal Year 2011, as amended by section 
1534 of the National Defense Authorization Act for Fiscal Year 
2012 and as amended by this section, is further amended— 
(1) by redesignating paragraph (7) as paragraph (8); and 
(2) by inserting after paragraph (6) the following new para-
graph (7): 
‘‘(7) REPORT ON IMPLEMENTATION OF TRANSITION ACTION 
PLAN.— 
‘‘(A) IN GENERAL.—The Secretary of Defense, in con-
sultation with the Secretary of State, shall submit to the 
appropriate congressional committees a report on the 
progress in implementing the Transition Action Plan of 
the Task Force for Business and Stability Operations in 
Afghanistan.
H. R. 4310—428 
‘‘(B) UPDATES.—The Secretary of Defense, in consulta-
tion with the Secretary of State, shall submit to the appro-
priate congressional committees an update of the report 
required by subparagraph (A) every 90 days after the 
submission of such report.’’. 
SEC. 1534. PLAN FOR TRANSITION IN FUNDING OF UNITED STATES 
SPECIAL OPERATIONS COMMAND FROM SUPPLEMENTAL 
FUNDING FOR OVERSEAS CONTINGENCY OPERATIONS TO 
RECURRING 
FUNDING 
UNDER 
THE 
FUTURE-YEARS 
DEFENSE PROGRAM. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the congressional 
defense committees a plan for the transition of funding of the 
United States Special Operations Command from funds authorized 
to be appropriated for overseas contingency operations (commonly 
referred to as the ‘‘overseas contingency operations budget’’) to 
funds authorized to be appropriated for recurring operations of 
the Department of Defense in accordance with applicable future- 
years defense programs under section 221 of title 10, United States 
Code (commonly referred to as the ‘‘base budget’’). 
SEC. 1535. ASSESSMENT OF COUNTER-IMPROVISED EXPLOSIVE DEVICE 
TRAINING AND INTELLIGENCE ACTIVITIES OF THE JOINT 
IMPROVISED EXPLOSIVE DEVICE DEFEAT ORGANIZATION 
AND NATIONAL AND MILITARY INTELLIGENCE ORGANIZA-
TIONS. 
(a) ASSESSMENT OF TRAINING ACTIVITIES.— 
(1) ASSESSMENT REQUIRED.—The Secretary of Defense shall 
prepare an assessment of the training-related activities of the 
Joint 
Improvised 
Explosive 
Device 
Defeat 
Organization 
(JIEDDO). 
(2) ELEMENTS.—The assessment required by paragraph (1) 
shall— 
(A) include all training programs and functions, both 
enduring and non-enduring, executed by the Joint Impro-
vised Explosive Device Defeat Organization in support of 
the United States Armed Forces; 
(B) identify any program or function that is similar 
to or duplicates other training activities conducted else-
where within the Department of Defense; and 
(C) assess the value of maintaining such similarity 
or duplication. 
(3) CONSULTATION.—The Secretary of Defense shall prepare 
the assessment required by paragraph (1) in consultation with 
the Chairman of the Joint Chiefs of Staff and the other chiefs 
of staff of the Armed Forces. 
(4) SUBMISSION AND FORM.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit a report containing the results of the assessment 
required by paragraph (1) to the congressional defense commit-
tees. The report shall be submitted in unclassified form, but 
may include a classified annex. 
(b) ASSESSMENT OF INTELLIGENCE ACTIVITIES.— 
(1) ASSESSMENT REQUIRED.—The Secretary of Defense shall 
prepare an assessment of the intelligence activities carried 
out in support of the counter-improvised explosive device mis-
sion of the Department of Defense.
H. R. 4310—429 
(2) ELEMENTS.—The assessment required by paragraph (1) 
shall— 
(A) consider the activities of the Counter-Improved 
Explosive Devise Operations Integration Center of the Joint 
Improvised 
Explosive 
Device 
Defeat 
Organization, 
including— 
(i) identification of all intelligence analysis pro-
grams and functions executed by the Counter-Impro-
vised Explosive Device Operations Integration Center 
in support of United States combatant commands and 
United States military activities in Afghanistan; 
(ii) identification of any program or function which 
is duplicated elsewhere in the intelligence components 
of the Department of Defense or the intelligence 
community of the United States; 
(iii) an assessment of the value of maintaining 
such duplication; and 
(iv) identification of any opportunities to eliminate 
unnecessary duplication; 
(B) consider the activities of the national and military 
intelligence communities to counter improvised explosive 
devices, including an assessment of— 
(i) the sufficiency, adequacy, and effectiveness of 
these efforts in support of the commanders of combat-
ant commands; 
(ii) the prioritization of collection efforts and 
resource allocation within the intelligence components 
of the Department of Defense toward countering impro-
vised explosive devices; and 
(iii) opportunities for improvement of these efforts, 
including how these components would support a 
broader counter improvised explosive device effort 
beyond operations in Afghanistan; and 
(C) consider the enduring need for a Counter-Impro-
vised Explosive Device Operations Integration Center and, 
if determined to be necessary, how this center could be 
most efficiently and effectively integrated into the broader 
Department of Defense intelligence community. 
(3) CONSULTATION.—The Secretary of Defense shall prepare 
the assessment required by paragraph (1) in consultation with 
the Director of National Intelligence and the Chairman of the 
Joint Chiefs of Staff. 
(4) SUBMISSION AND FORM.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit a report containing the results of the assessment 
required by paragraph (1) to the congressional defense commit-
tees, the Permanent Select Committee on Intelligence of the 
House of Representatives, and the Select Committee on Intel-
ligence of the Senate. The report shall be submitted in unclassi-
fied form, but may include a classified annex. 
TITLE XVI—INDUSTRIAL BASE 
MATTERS 
Subtitle A—Defense Industrial Base Matters 
Sec. 1601. Disestablishment of Defense Materiel Readiness Board.
H. R. 4310—430 
Sec. 1602. Assessment of effects of foreign boycotts. 
Sec. 1603. National security strategy for national technology and industrial base. 
Subtitle B—Department of Defense Activities Related to Small Business Matters 
Sec. 1611. Role of the directors of small business programs in acquisition processes 
of the Department of Defense. 
Sec. 1612. Small Business Ombudsman for defense audit agencies. 
Sec. 1613. Independent assessment of Federal procurement contracting perform-
ance of the Department of Defense. 
Sec. 1614. Additional responsibilities of Inspector General of the Department of De-
fense. 
Sec. 1615. Restoration of 1 percent funding for administrative expenses of Commer-
cialization Readiness Program of Department of Defense. 
Subtitle C—Matters Relating to Small Business Concerns 
PART I—PROCUREMENT CENTER REPRESENTATIVES 
Sec. 1621. Procurement center representatives. 
Sec. 1622. Small Business Act contracting requirements training. 
Sec. 1623. Acquisition planning. 
PART II—GOALS FOR PROCUREMENT CONTRACTS AWARDED TO SMALL BUSINESS 
CONCERNS 
Sec. 1631. Goals for procurement contracts awarded to small business concerns. 
Sec. 1632. Reporting on goals for procurement contracts awarded to small business 
concerns. 
Sec. 1633. Senior executives. 
PART III—MENTOR-PROTEGE PROGRAMS 
Sec. 1641. Mentor-Protege programs. 
PART IV—TRANSPARENCY IN SUBCONTRACTING 
Sec. 1651. Limitations on subcontracting. 
Sec. 1652. Penalties. 
Sec. 1653. Subcontracting plans. 
Sec. 1654. Notices of subcontracting opportunities. 
Sec. 1655. Publication of certain documents. 
PART V—SMALL BUSINESS CONCERN SIZE STANDARDS 
Sec. 1661. Small business concern size standards. 
PART VI—CONTRACT BUNDLING 
Sec. 1671. Contract bundling. 
PART VII—INCREASED PENALTIES FOR FRAUD 
Sec. 1681. Safe harbor for good faith compliance efforts. 
Sec. 1682. Requirement that fraudulent businesses be suspended or debarred. 
Sec. 1683. Annual report on suspensions and debarments proposed by Small Busi-
ness Administration. 
PART VIII—OFFICES OF SMALL AND DISADVANTAGED BUSINESS UNITS 
Sec. 1691. Offices of Small and Disadvantaged Business Utilization. 
Sec. 1692. Small Business Procurement Advisory Council. 
PART IX—OTHER MATTERS 
Sec. 1695. Surety bonds. 
Sec. 1696. Conforming Amendments; Repeal of redundant provisions; Regulations. 
Sec. 1697. Contracting with small business concerns owned and controlled by 
women. 
Sec. 1698. Small business HUBZones. 
Sec. 1699. National Veterans Business Development Corporation. 
Sec. 1699a. State Trade and Export Promotion Grant Program.
H. R. 4310—431 
Subtitle A—Defense Industrial Base 
Matters 
SEC. 1601. DISESTABLISHMENT OF DEFENSE MATERIEL READINESS 
BOARD. 
(a) DISESTABLISHMENT OF BOARD.—The Defense Materiel Readi-
ness Board established pursuant to section 871 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public Law 110– 
181; 10 U.S.C. 117 note) is hereby disestablished. 
(b) TERMINATION OF DEFENSE STRATEGIC READINESS FUND.— 
The Department of Defense Strategic Readiness Fund established 
by section 872(d) of the National Defense Authorization Act for 
Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 117 note) is 
hereby closed. 
(c) REPEAL.—Subtitle G of title VIII of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 117 note) is repealed. 
SEC. 1602. ASSESSMENT OF EFFECTS OF FOREIGN BOYCOTTS. 
Section 2505 of title 10, United States Code, is amended— 
(1) by redesignating subsection (d) as subsection (e); and 
(2) by inserting after subsection (c) the following new sub-
section (d): 
‘‘(d) ASSESSMENT OF EXTENT OF EFFECTS OF FOREIGN BOY-
COTTS.—Each assessment under subsection (a) shall include an 
examination of the extent to which the national technology and 
industrial base is affected by foreign boycotts. If it is determined 
that a foreign boycott (other than a boycott addressed in a previous 
assessment) is subjecting the national technology and industrial 
base to significant harm, the assessment shall include a separate 
discussion and presentation regarding that foreign boycott that 
shall, at a minimum— 
‘‘(1) identify the sectors that are subject to such harm; 
‘‘(2) describe the harm resulting from such boycott; and 
‘‘(3) identify actions necessary to minimize the effects of 
such boycott on the national technology and industrial base.’’. 
SEC. 1603. NATIONAL SECURITY STRATEGY FOR NATIONAL TECH-
NOLOGY AND INDUSTRIAL BASE. 
(a) REQUIREMENT FOR STRATEGY.— 
(1) IN GENERAL.—Section 2501 of title 10, United States 
Code, is amended as follows: 
(A) The section heading is amended by striking ‘‘objec-
tives concerning’’ and inserting ‘‘strategy for’’. 
(B) Subsection (a) is amended— 
(i) in the subsection heading, by striking ‘‘OBJEC-
TIVES’’ and inserting ‘‘STRATEGY’’; 
(ii) by striking ‘‘It is the policy of’’ and all that 
follows through ‘‘objectives:’’ and inserting the fol-
lowing: ‘‘The Secretary of Defense shall develop a 
national security strategy for the national technology 
and industrial base. Such strategy shall be based on 
a prioritized assessment of risks and challenges to 
the defense supply chain and shall ensure that the 
national technology and industrial base is capable of
H. R. 4310—432 
achieving the following national security objectives:’’; 
and 
(iii) by adding at the end the following new para-
graphs: 
‘‘(9) Ensuring reliable sources of materials that are critical 
to national security, such as specialty metals, essential min-
erals, armor plate, and rare earth elements. 
‘‘(10) Reducing, to the maximum extent practicable, the 
presence of counterfeit parts in the supply chain and the risk 
associated with such parts.’’. 
(2) CLERICAL AMENDMENT.—The item relating to section 
2501 in the table of sections at the beginning of subchapter 
II of chapter 148 of such title is amended to read as follows: 
‘‘2501. National security strategy for national technology and industrial base.’’. 
(b) AMENDMENT TO ANNUAL REPORT RELATING TO DEFENSE 
INDUSTRIAL BASE.—Section 2504 of such title is amended— 
(1) by striking paragraph (2); 
(2) by redesignating paragraph (3) as paragraph (2); and 
(3) by inserting after paragraph (2) (as so redesignated) 
the following new paragraph (3): 
‘‘(3) Based on the strategy required by section 2501 of 
this title and on the assessments prepared pursuant to section 
2505 of this title— 
‘‘(A) a description of any mitigation strategies nec-
essary to address any gaps or vulnerabilities in the national 
technology and industrial base; and 
‘‘(B) any other steps necessary to foster and safeguard 
the national technology and industrial base.’’. 
(c) REQUIREMENT FOR CONSIDERATION OF STRATEGY IN ACQUISI-
TION PLANS.—Section 2440 of such title is amended by inserting 
after ‘‘base’’ the following: ‘‘, in accordance with the strategy 
required by section 2501 of this title,’’. 
(d) CONFORMING AMENDMENTS.—Section 852 of the National 
Defense Authorization Act for Fiscal Year 2012 (Public Law 112– 
81; 125 Stat. 1517; 10 U.S.C. 2504 note) is amended— 
(1) by striking subsection (c); and 
(2) by redesignating subsection (d) as subsection (c), and 
in that subsection by striking ‘‘subsection (c).’’ in the first 
sentence and inserting ‘‘section 2501 of title 10, United States 
Code.’’. 
Subtitle B—Department of Defense Activi-
ties Related to Small Business Matters 
SEC. 1611. ROLE OF THE DIRECTORS OF SMALL BUSINESS PROGRAMS 
IN ACQUISITION PROCESSES OF THE DEPARTMENT OF 
DEFENSE. 
(a) GUIDANCE
REQUIRED.—The Secretary of Defense shall 
develop and issue guidance to ensure that the head of each Office 
of Small Business Programs of the Department of Defense is a 
participant as early as practicable in the acquisition processes— 
(1) of the Department, in the case of the Director of Small 
Business Programs in the Department of Defense; and 
(2) of the military department concerned, in the case of 
the Director of Small Business Programs in the Department
H. R. 4310—433 
of the Army, in the Department of the Navy, and in the Depart-
ment of the Air Force. 
(b) MATTERS TO BE INCLUDED.—Such guidance shall, at a min-
imum— 
(1) require the Director of Small Business Programs in 
the Department of Defense— 
(A) to provide advice to the Defense Acquisition Board; 
and 
(B) to provide advice to the Information Technology 
Acquisition Board; and 
(2) require coordination between the chiefs of staff of the 
Armed Forces and the service acquisition executives, as appro-
priate (or their designees), and the Director of Small Business 
Programs in each military department as early as practical 
in the relevant acquisition processes. 
SEC. 1612. SMALL BUSINESS OMBUDSMAN FOR DEFENSE AUDIT AGEN-
CIES. 
(a) SMALL BUSINESS OMBUDSMAN.—Subchapter II of chapter 
8 of title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 204. Small Business Ombudsman for defense audit agen-
cies 
‘‘(a) SMALL BUSINESS OMBUDSMAN.—The Secretary of Defense 
shall designate within each defense audit agency an official as 
the Small Business Ombudsman to have the duties described in 
subsection (b) and such other responsibilities as may be determined 
by the Secretary. 
‘‘(b) DUTIES.—The Small Business Ombudsman of a defense 
audit agency shall— 
‘‘(1) advise the Director of the defense audit agency on 
policy issues related to small business concerns; 
‘‘(2) serve as the defense audit agency’s primary point of 
contact and source of information for small business concerns; 
‘‘(3) collect and monitor relevant data regarding the defense 
audit agency’s conduct of audits of small business concerns, 
including— 
‘‘(A) data regarding the timeliness of audit closeouts 
for small business concerns; and 
‘‘(B) data regarding the responsiveness of the defense 
audit agency to issues or other matters raised by small 
business concerns; and 
‘‘(4) make recommendations to the Director regarding poli-
cies, processes, and procedures related to the timeliness of 
audits of small business concerns and the responsiveness of 
the defense audit agency to issues or other matters raised 
by small business concerns. 
‘‘(c) AUDIT INDEPENDENCE.—The Small Business Ombudsman 
of a defense audit agency shall be segregated from ongoing audits 
in the field and shall not engage in activities with regard to par-
ticular audits that could compromise the independence of the 
defense audit agency or undermine compliance with applicable audit 
standards. 
‘‘(d) DEFENSE AUDIT AGENCY DEFINED.—In this section, the 
term ‘defense audit agency’ means the Defense Contract Audit 
Agency and the Defense Contract Management Agency.’’.
H. R. 4310—434 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of subchapter II of chapter 8 of such title is amended by 
inserting after the item relating to section 203 the following new 
item: 
‘‘204. Small Business Ombudsman for defense audit agencies.’’. 
SEC. 1613. INDEPENDENT ASSESSMENT OF FEDERAL PROCUREMENT 
CONTRACTING PERFORMANCE OF THE DEPARTMENT OF 
DEFENSE. 
(a) ASSESSMENT REQUIRED.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
select an appropriate entity to conduct an independent assessment 
of the procurement performance of the Department of Defense 
related to small business concerns. 
(b) MATTERS COVERED.—The assessment under subsection (a) 
shall, at a minimum, include an examination of— 
(1) the industrial composition of companies receiving sub-
contracts pursuant to the test program for the negotiation 
of comprehensive small business subcontracting plans pursuant 
to section 834 of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (Public Law 101–189; 15 U.S.C. 
637 note), compared to the industrial composition of other con-
tractors in the defense industrial base; 
(2) the quality and reliability of data on small business 
prime contracting and subcontracting by the Department, and 
the reliability of the information technology systems that the 
Department uses to track such data; 
(3) the negotiation and execution of small business subcon-
tracting plans, and the degree to which proposed teaming agree-
ments are or are not maintained through the performance 
of contracts; 
(4) the extent to which the Department adheres to current 
policies and guidelines relating to small business prime con-
tracting and subcontracting goals; 
(5) the extent to which the Department bundles, consoli-
dates, or otherwise groups requirements into contracts that 
are unsuitable for award to small business concerns, the extent 
to which such bundling, consolidation, or grouping of require-
ments is justified, and the effects that such practices have 
on small business participation in contracting opportunities 
with the Department; 
(6) the degree to which abuses of small business contracting 
and subcontracting programs result in contracts and sub-
contracts intended for small business concerns not being 
awarded to small business concerns; and 
(7) an examination of the transition challenges faced by 
businesses that graduate from small business programs or grow 
to exceed the size standards for participation in such programs, 
along with specific recommendations on steps that should be 
taken to help ensure the continued health and growth of such 
businesses. 
(c) REPORT.—Not later than January 1, 2014, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the independent assessment conducted under this sec-
tion. The report shall include the findings and recommendations 
of the assessment, together with any recommendations that the 
Secretary may have for improving the Department’s small business
H. R. 4310—435 
contracting practices and addressing any shortcomings identified 
by the assessment. 
SEC. 1614. ADDITIONAL RESPONSIBILITIES OF INSPECTOR GENERAL 
OF THE DEPARTMENT OF DEFENSE. 
(a) REQUIREMENT FOR EXTERNAL PEER REVIEWS.—Section 8(c) 
of the Inspector General Act of 1978 (5 U.S.C. App.) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph (8); 
(2) by striking the period and inserting ‘‘; and’’ at the 
end of paragraph (9); and 
(3) by adding at the end the following new paragraph: 
‘‘(10) conduct, or approve arrangements for the conduct 
of, external peer reviews of Department of Defense audit agen-
cies in accordance with and in such frequency as provided 
by Government auditing standards as established by the Comp-
troller General of the United States.’’. 
(b) REQUIREMENT
FOR
ADDITIONAL
INFORMATION
IN
SEMI-
ANNUAL REPORTS.—Section 8(f) of such Act is amended by striking 
paragraph (1) and inserting the following: 
‘‘(1) Each semiannual report prepared by the Inspector General 
of the Department of Defense under section 5(a) shall be transmitted 
by the Secretary of Defense to the Committees on Armed Services 
and on Homeland Security and Governmental Affairs of the Senate 
and the Committees on Armed Services and on Oversight and 
Government Reform of the House of Representatives and to other 
appropriate committees or subcommittees of Congress. Each such 
report shall include— 
‘‘(A) information concerning the numbers and types of con-
tract audits conducted by the Department during the reporting 
period; and 
‘‘(B) information concerning any Department of Defense 
audit agency that, during the reporting period, has either 
received a failed opinion from an external peer review or is 
overdue for an external peer review required to be conducted 
in accordance with subsection (c)(10).’’. 
SEC. 1615. RESTORATION OF 1 PERCENT FUNDING FOR ADMINISTRA-
TIVE EXPENSES OF COMMERCIALIZATION READINESS 
PROGRAM OF DEPARTMENT OF DEFENSE. 
(a) RESTORATION.—Section 9(y) of the Small Business Act (15 
U.S.C. 638(y)), as amended by section 5141(b)(1)(B) of the National 
Defense Authorization Act for Fiscal Year 2012 (Public Law 112– 
81; 125 Stat. 1853) is amended— 
(1) by redesignating paragraphs (4) and (5) as paragraphs 
(5) and (6), respectively; and 
(2) by inserting after paragraph (3) the following new para-
graph (4): 
‘‘(4) FUNDING.—For payment of expenses incurred to admin-
ister the Commercialization Readiness Program under this sub-
section, the Secretary of Defense and each Secretary of a mili-
tary department is authorized to use not more than an amount 
equal to 1 percent of the funds available to the Department 
of Defense or the military department pursuant to the Small 
Business Innovation Research Program. Such funds shall not 
be used to make Phase III awards.’’. 
(b) TECHNICAL
AMENDMENT.—Section 5141(b)(3)(B) of the 
National Defense Authorization Act for Fiscal Year 2012 (Public 
Law 112–81; 125 Stat. 1854) is amended by striking ‘‘subsection
H. R. 4310—436 
(y)—’’ and all that follows through ‘‘the following:’’ and inserting 
‘‘subsection (y), by amending paragraph (4) to read as follows:’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as of January 1, 2012. 
Subtitle C—Matters Relating to Small 
Business Concerns 
PART I—PROCUREMENT CENTER 
REPRESENTATIVES 
SEC. 1621. PROCUREMENT CENTER REPRESENTATIVES. 
(a) IN GENERAL.—Section 15(l) of the Small Business Act (15 
U.S.C. 644(l)) is amended by striking the subsection enumerator 
and inserting the following: 
‘‘(l) PROCUREMENT CENTER REPRESENTATIVES.—’’. 
(b) ASSIGNMENT AND ROLE.—Paragraph (1) of section 15(l) of 
such Act (15 U.S.C. 644(l)) is amended to read as follows: 
‘‘(1) ASSIGNMENT
AND
ROLE.—The Administrator shall 
assign to each major procurement center a procurement center 
representative with such assistance as may be appropriate.’’. 
(c) ACTIVITIES.—Section 15(l)(2) of such Act (15 U.S.C. 644(l)(2)) 
is amended— 
(1) in the matter preceding subparagraph (A), by striking 
‘‘(2) In addition to carrying out the responsibilities assigned 
by the Administration, a breakout’’ and inserting the following: 
‘‘(2) ACTIVITIES.—A’’; 
(2) in subparagraph (B)— 
(A) by striking ‘‘(B) review, at any time, restrictions 
on competition’’ and inserting the following: 
‘‘(B) review, at any time, barriers to small business 
participation in Federal contracting’’; 
(B) by striking ‘‘items’’ and inserting ‘‘goods and serv-
ices’’; and 
(C) by striking ‘‘limitations’’ and inserting ‘‘barriers’’; 
(3) in subparagraph (C), by striking ‘‘(C) review restrictions 
on competition’’ and inserting the following: 
‘‘(C) review barriers to small business participation 
in Federal contracting’’; 
(4) by striking subparagraph (D) and inserting the fol-
lowing: 
‘‘(D) review any bundled or consolidated solicitation 
or contract in accordance with this Act;’’; 
(5) by striking subparagraph (E) and inserting the fol-
lowing: 
‘‘(E) have access to procurement records and other 
data of the procurement center commensurate with the 
level of such representative’s approved security clearance 
classification, with such data provided upon request in 
electronic format, when available;’’; and 
(6) by striking subparagraphs (F) and (G) and inserting 
the following: 
‘‘(F) receive unsolicited proposals from small business 
concerns and transmit such proposals to personnel of the 
activity responsible for reviewing such proposals, who shall
H. R. 4310—437 
furnish the procurement center representative with 
information regarding the disposition of any such proposal; 
‘‘(G) consult with the Director the Office of Small and 
Disadvantaged Business Utilization of that agency and the 
agency personnel described in paragraph (7) and (8) of 
subsection (k) with regard to agency insourcing decisions 
covered by subsection (k)(11); 
‘‘(H) be an advocate for the maximum practicable utili-
zation of small business concerns in Federal contracting, 
including by advocating against the consolidation or bun-
dling of contract requirements when not justified; and 
‘‘(I) carry out any other responsibility assigned by the 
Administrator.’’. 
(d) APPEALS.—Section 15(l)(3) of such Act (15 U.S.C. 644(l)(3)) 
is amended by striking ‘‘(3) A breakout procurement center rep-
resentative’’ and inserting the following: 
‘‘(3) APPEALS.—A procurement center representative’’. 
(e) ASSIGNMENT
TO MAJOR PROCUREMENT CENTERS.—Para-
graph (4) of section 15(l) of such Act (15 U.S.C. 644(l)) is amended 
by striking ‘‘breakout procurement center representative’’ and 
inserting ‘‘procurement center representative’’. 
(f) POSITION REQUIREMENTS.—Section 15(l)(5) of such Act (15 
U.S.C. 644(l)(5)) is amended— 
(1) by striking the paragraph enumerator and inserting 
the following: 
‘‘(5) POSITION REQUIREMENTS.—’’; 
(2) by striking subparagraphs (A) and (B) and inserting 
the following: 
‘‘(A) IN GENERAL.—A procurement center representa-
tive assigned under this subsection shall— 
‘‘(i) be a full-time employee of the Administration; 
‘‘(ii) be fully qualified, technically trained, and 
familiar with the goods and services procured by the 
major procurement center to which that representative 
is assigned; and 
‘‘(iii) have a Level III Federal Acquisition Certifi-
cation in Contracting (or any successor certification) 
or the equivalent Department of Defense certification, 
except that any person serving in such a position on 
the date of enactment of this clause may continue 
to serve in that position for a period of 5 years without 
the required certification.’’; and 
(3) in subparagraph (C) by striking ‘‘(C) The Administration 
shall establish personnel positions for breakout procurement 
representatives and advisers assigned pursuant to’’ and 
inserting the following: 
‘‘(B) COMPENSATION.—The Administrator shall estab-
lish personnel positions for procurement center representa-
tives assigned under’’. 
(g) MAJOR PROCUREMENT CENTER DEFINED.—Section 15(l)(6) 
of such Act (15 U.S.C. 644(l)(6)) is amended— 
(1) by striking ‘‘(6) For purposes’’ and inserting the fol-
lowing: 
‘‘(6) MAJOR
PROCUREMENT
CENTER
DEFINED.—For pur-
poses’’; and 
(2) by striking ‘‘other than commercial items and which 
has the potential to incur significant savings as the result
H. R. 4310—438 
of the placement of a breakout procurement center representa-
tive’’ and inserting ‘‘goods or services, including goods or serv-
ices that are commercially available’’. 
(h) TRAINING.—Section 15(l)(7) of such Act (15 U.S.C. 644(l)(7)) 
is amended— 
(1) by striking the paragraph enumerator and inserting 
the following: 
‘‘(7) TRAINING.—’’; 
(2) in subparagraph (A) by striking ‘‘(A) At such times’’ 
and inserting the following: 
‘‘(A) AUTHORIZATION.—At such times’’. 
(3) in subparagraph (B)— 
(A) by striking ‘‘(B) The breakout procurement center 
representative’’ and inserting the following: 
‘‘(8) ANNUAL BRIEFING AND REPORT.—A procurement center 
representative’’; and 
(B) by striking ‘‘sixty’’ and inserting ‘‘60’’; and 
(4) by inserting after subparagraph (A) the following: 
‘‘(B) LIMITATION.—A procurement center representative 
may provide training under subparagraph (A) only to the 
extent that the training does not interfere with the rep-
resentative carrying out other activities under this sub-
section.’’. 
SEC. 1622. SMALL BUSINESS ACT CONTRACTING REQUIREMENTS 
TRAINING. 
(a) ESTABLISHMENT.—Not later than 1 year after the date of 
enactment of this part, the Defense Acquisition University and 
the Federal Acquisition Institute shall each provide a course on 
contracting requirements under the Small Business Act, including 
the requirements for small business concerns owned and controlled 
by service-disabled veterans, qualified HUBZone small business 
concerns, small business concerns owned and controlled by socially 
and economically disadvantaged individuals, and small business 
concerns owned and controlled by women. 
(b) COURSE REQUIRED.—To have a Federal Acquisition Certifi-
cation in Contracting (or any successor certification) or the equiva-
lent Department of Defense certification an individual shall be 
required to complete the course established under subsection (a). 
(c) REQUIREMENT THAT BUSINESS OPPORTUNITY SPECIALISTS 
BE CERTIFIED.—Section 7(j)(10)(D)(i) of the Small Business Act 
(15 U.S.C. 636(j)(10)(D)(i)) is amended by inserting after ‘‘to assist 
such Program Participant.’’ the following: ‘‘The Business Oppor-
tunity Specialist shall have a Level I Federal Acquisition Certifi-
cation in Contracting (or any successor certification) or the equiva-
lent Department of Defense certification, except that a Business 
Opportunity Specialist serving at the time of the date of enactment 
of the National Defense Authorization Act for Fiscal Year 2013 
may continue to serve as a Business Opportunity Specialist for 
a period of 5 years beginning on that date of enactment without 
such a certification.’’. 
SEC. 1623. ACQUISITION PLANNING. 
Section 15(e)(1) of the Small Business Act (15 U.S.C. 644(e)(1)) 
is amended— 
(1) by striking ‘‘the various agencies’’ and inserting ‘‘a 
Federal department or agency’’; and
H. R. 4310—439 
(2) by striking the period and inserting ‘‘, and each such 
Federal department or agency shall— 
‘‘(A) provide opportunities for the participation of small 
business concerns during acquisition planning processes 
and in acquisition plans; and 
‘‘(B) invite the participation of the appropriate Director 
of Small and Disadvantaged Business Utilization in 
acquisition planning processes and provide that Director 
access to acquisition plans.’’. 
PART II—GOALS FOR PROCUREMENT CON-
TRACTS AWARDED TO SMALL BUSINESS 
CONCERNS 
SEC. 1631. GOALS FOR PROCUREMENT CONTRACTS AWARDED TO 
SMALL BUSINESS CONCERNS. 
(a) GOVERNMENTWIDE GOALS.—Paragraph (1) of section 15(g) 
of the Small Business Act (15 U.S.C. 644(g)) is amended to read 
as follows: 
‘‘(1) GOVERNMENTWIDE GOALS.— 
‘‘(A) ESTABLISHMENT.—The President shall annually 
establish Governmentwide goals for procurement contracts 
awarded to small business concerns, small business con-
cerns owned and controlled by service-disabled veterans, 
qualified HUBZone small business concerns, small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals, and small business concerns 
owned and controlled by women in accordance with the 
following: 
‘‘(i) The Governmentwide goal for participation by 
small business concerns shall be established at not 
less than 23 percent of the total value of all prime 
contract awards for each fiscal year. 
‘‘(ii) The Governmentwide goal for participation 
by small business concerns owned and controlled by 
service-disabled veterans shall be established at not 
less than 3 percent of the total value of all prime 
contract and subcontract awards for each fiscal year. 
‘‘(iii) The Governmentwide goal for participation 
by qualified HUBZone small business concerns shall 
be established at not less than 3 percent of the total 
value of all prime contract and subcontract awards 
for each fiscal year. 
‘‘(iv) The Governmentwide goal for participation 
by small business concerns owned and controlled by 
socially and economically disadvantaged individuals 
shall be established at not less than 5 percent of the 
total value of all prime contract and subcontract 
awards for each fiscal year. 
‘‘(v) The Governmentwide goal for participation by 
small business concerns owned and controlled by 
women shall be established at not less than 5 percent 
of the total value of all prime contract and subcontract 
awards for each fiscal year. 
‘‘(B) ACHIEVEMENT OF GOVERNMENTWIDE GOALS.—Each 
agency shall have an annual goal that presents, for that
H. R. 4310—440 
agency, the maximum practicable opportunity for small 
business concerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified HUBZone 
small business concerns, small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and con-
trolled by women to participate in the performance of con-
tracts let by such agency. The Small Business Administra-
tion and the Administrator for Federal Procurement Policy 
shall, when exercising their authority pursuant to para-
graph (2), insure that the cumulative annual prime contract 
goals for all agencies meet or exceed the annual 
Governmentwide prime contract goal established by the 
President pursuant to this paragraph.’’. 
(b) AMENDMENTS
TO
THE SMALL BUSINESS ACT.—Paragraph 
(2) of section 15(g) of the Small Business Act (15 U.S.C. 644(g)) 
is amended— 
(1) in subparagraph (A), by adding at the end the following: 
‘‘Such goals shall separately address prime contract awards 
and subcontract awards for each category of small business 
covered.’’; 
(2) in subparagraph (D), by striking ‘‘For the purpose of 
establishing goals under this subsection’’ and all that follows 
through the end of that subparagraph, and inserting the fol-
lowing: ‘‘After establishing goals under this paragraph for a 
fiscal year, the head of each Federal agency shall develop 
a plan for achieving such goals at both the prime contract 
and the subcontract level, which shall apportion responsibilities 
among the agency’s acquisition executives and officials. In 
establishing goals under this paragraph, the head of each Fed-
eral agency shall make a consistent effort to annually expand 
participation by small business concerns from each industry 
category in procurement contracts and subcontracts of such 
agency, including participation by small business concerns 
owned and controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small business concerns 
owned and controlled by socially and economically disadvan-
taged individuals, and small business concerns owned and con-
trolled by women.’’; and 
(3) by striking subparagraphs (E) and (F) and inserting 
the following: 
‘‘(E) The head of each Federal agency, in attempting 
to attain expanded participation under subparagraph (D), 
shall consider— 
‘‘(i) contracts awarded as the result of unrestricted 
competition; and 
‘‘(ii) contracts awarded after competition restricted 
to eligible small business concerns under this section 
and under the program established under section 8(a). 
‘‘(F)(i) Each procurement employee or program man-
ager described in clause (ii) shall communicate to the 
subordinates of the procurement employee or program man-
ager the importance of achieving goals established under 
subparagraph (A). 
‘‘(ii) A procurement employee or program manager 
described in this clause is a senior procurement executive,
H. R. 4310—441 
senior program manager, or Director of Small and Dis-
advantaged Business Utilization of a Federal agency having 
contracting authority.’’. 
(c) ADDITIONAL REQUIREMENTS.—Not later than 180 days after 
the date of the enactment of this part, the Administrator of the 
Small Business Administration shall review and revise the Goaling 
Guidelines for the Small Business Preference Programs for Prime 
and Subcontract Federal Procurement Goals and Achievements to 
the extent necessary to ensure that— 
(1) agency subcontracting goals are established on the basis 
of realistically achievable improvements to levels of subcon-
tracting rather than on the basis of an average of previous 
years’ subcontracting performance; 
(2) agency contracting and subcontracting goals are estab-
lished in a manner that does not exclude categories of contracts 
on the basis of— 
(A) the type of goods or services for which the agency 
contracts; 
(B) in the case of contracts subject to competitive proce-
dures under chapter 33 of title 41, United States Code— 
(i) whether or not funding for the contracts is 
made directly available to the agency by an Appropria-
tions Act or is made available by reimbursement from 
another agency or account; or 
(ii) whether or not the contract is subject to the 
Federal Acquisition Regulation; and 
(3) whenever an agency contracting or subcontracting goal 
is established at a level lower than the Governmentwide goal 
for small business concerns or the relevant category of small 
business concerns, the Administration is required to document 
the basis for the decision to establish such lower goal. 
(d) ASSESSMENT REQUIRED.—Not later than 60 days after the 
date of the enactment of this part, the Chief Counsel for Advocacy 
of the Small Business Administration shall enter into a contract 
with an appropriate entity to conduct an independent assessment 
of the small business procurement goals established in section 15(g) 
of the Small Business Act. 
(1) COORDINATION WITH DEPARTMENT OF DEFENSE.—To the 
extent practicable, the Administrator shall coordinate this 
assessment with the Secretary of Defense, to avoid unnecessary 
duplication with the assessment required by section 1613 of 
this title. 
(2) MATTERS COVERED.—The assessment under this sub-
section shall, at a minimum, include— 
(A) a description of the industrial composition of 
companies receiving prime contracts and subcontracts with 
the Federal Government; 
(B) a description of the industrial composition of 
domestic small business concerns, small business concerns 
owned and controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small business concerns 
owned and controlled by socially and economically dis-
advantaged individuals, and small business concerns owned 
and controlled by women; 
(C) a comparison of the industrial composition of prime 
contractors and subcontractors participating in Federal con-
tracting and the industrial composition of domestic small
H. R. 4310—442 
business concerns, small business concerns owned and con-
trolled by service-disabled veterans, qualified HUBZone 
small business concerns, small business concerns owned 
and controlled by socially and economically disadvantaged 
individuals, and small business concerns owned and con-
trolled by women; 
(D) a determination of barriers to accurately capturing 
data on small business prime contracting and subcon-
tracting, including an examination of the reliability of 
information technology systems used by more than one 
Federal agency to track such data; 
(E) recommendations for improving the quality and 
availability of data regarding small business prime con-
tracting and subcontracting performance; 
(F) recommendations to improve and inform the 
establishment of the goals in section 15(g) of the Small 
Business Act, including: 
(i) alternate methodologies for establishing the 
goals; 
(ii) determining which contracts should be subject 
to the goals; 
(iii) methods for improving the correlation of cur-
rent goaling practices with the health of the industrial 
base; and 
(iv) methods of allocating goals between Federal 
agencies; and 
(G) barriers within Federal procurement practices that 
inhibit the maximum practicable utilization of domestic 
small business concerns, small business concerns owned 
and controlled by service-disabled veterans, qualified 
HUBZone small business concerns, small business concerns 
owned and controlled by socially and economically dis-
advantaged individuals, and small business concerns owned 
and controlled by women. 
SEC. 1632. REPORTING ON GOALS FOR PROCUREMENT CONTRACTS 
AWARDED TO SMALL BUSINESS CONCERNS. 
Subsection (h) of section 15 of the Small Business Act (15 
U.S.C. 644) is amended to read as follows: 
‘‘(h) REPORTING
ON
GOALS
FOR
PROCUREMENT
CONTRACTS 
AWARDED TO SMALL BUSINESS CONCERNS.— 
‘‘(1) AGENCY
REPORTS.—At the conclusion of each fiscal 
year, the head of each Federal agency shall submit to the 
Administrator a report describing— 
‘‘(A) the extent of the participation by small business 
concerns, small business concerns owned and controlled 
by veterans (including service-disabled veterans), qualified 
HUBZone small business concerns, small business concerns 
owned and controlled by socially and economically dis-
advantaged individuals, and small business concerns owned 
and controlled by women in the procurement contracts 
of such agency during such fiscal year; 
‘‘(B) whether the agency achieved the goals established 
for the agency under subsection (g)(2) with respect to such 
fiscal year; and 
‘‘(C) any justifications for a failure to achieve such 
goals.
H. R. 4310—445 
disabled veterans, qualified HUBZone small business con-
cerns, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, and 
small business concerns owned and controlled by women, 
provided that such information is publicly available 
through data systems developed pursuant to the Federal 
Funding Accountability and Transparency Act of 2006 
(Public Law 109–282), or otherwise available as provided 
in paragraph (3). 
‘‘(3) ACCESS TO DATA.— 
‘‘(A) FEDERAL PROCUREMENT DATA SYSTEM.—To assist 
in the implementation of this section, the Administration 
shall have access to information collected through the Fed-
eral Procurement Data System, Federal Subcontracting 
Reporting System, or any new or successor system. 
‘‘(B) AGENCY PROCUREMENT DATA SOURCES.—To assist 
in the implementation of this section, the head of each 
contracting agency shall provide, upon request of the 
Administration, procurement information collected through 
agency data collection sources in existence at the time 
of the request. Contracting agencies shall not be required 
to establish new data collection systems to provide such 
data.’’. 
SEC. 1633. SENIOR EXECUTIVES. 
(a) TRAINING.—Programs established for the development of 
senior executives under section 3396(a) of title 5, United States 
Code, shall include training with respect to Federal procurement 
requirements, including contracting requirements under the Small 
Business Act (15 U.S.C. 631 et seq.). 
(b) RESPONSIBILITY FOR ACHIEVING SMALL BUSINESS GOALS.— 
The head of an agency shall take steps to ensure that members 
of the senior executive service, as defined under section 3396(a) 
of title 5, United States Code, responsible for acquisition, other 
senior officials responsible for acquisition, and other members of 
the senior executive service, as appropriate, assume responsibility 
for of the agency’s success in achieving small business contracting 
goals and percentages by— 
(1) promoting a climate or environment that is responsive 
to small business concerns; 
(2) communicating the importance of achieving the agency’s 
small business contracting goals; and 
(3) encouraging small business awareness, outreach, and 
support. 
(c) DEFINITIONS.—In this section the term ‘‘responsible for 
acquisition’’, with respect to a member of the senior executive 
service or other senior official, means such a member or official 
who acquires services or supplies, directs agency organizations to 
acquire services or supplies, oversees acquisition officials, including 
program managers, contracting officers, and other acquisition 
workforce personnel responsible for formulating and approving 
acquisition strategies and plans. 
PART III—MENTOR-PROTEGE PROGRAMS 
SEC. 1641. MENTOR-PROTEGE PROGRAMS. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
H. R. 4310—446 
(1) by redesignating section 45 as section 47; and 
(2) by inserting after section 44 the following: 
‘‘SEC. 45. MENTOR-PROTEGE PROGRAMS. 
‘‘(a) ADMINISTRATION PROGRAM.— 
‘‘(1) AUTHORITY.—The Administrator is authorized to estab-
lish a mentor-protege program for all small business concerns. 
‘‘(2) MODEL FOR PROGRAM.—The mentor-protege program 
established under paragraph (1) shall be identical to the 
mentor-protege program of the Administration for small busi-
ness concerns that participate in the program under section 
8(a) (as in effect on the date of enactment of this section), 
except that the Administrator may modify the program to the 
extent necessary given the types of small business concerns 
included as proteges. 
‘‘(b) PROGRAMS OF OTHER AGENCIES.— 
‘‘(1) APPROVAL REQUIRED.—Except as provided in paragraph 
(4), a Federal department or agency may not carry out a 
mentor-protege program for small business concerns unless— 
‘‘(A) the head of the department or agency submits 
a plan to the Administrator for the program; and 
‘‘(B) the Administrator approves such plan. 
‘‘(2) BASIS FOR APPROVAL.—The Administrator shall approve 
or disapprove a plan submitted under paragraph (1) based 
on whether the program proposed— 
‘‘(A) will assist proteges to compete for Federal prime 
contracts and subcontracts; and 
‘‘(B) complies with the regulations issued under para-
graph (3). 
‘‘(3) REGULATIONS.—Not later than 270 days after the date 
of enactment of this section, the Administrator shall issue, 
subject to notice and comment, regulations with respect to 
mentor-protege programs, which shall ensure that such pro-
grams improve the ability of proteges to compete for Federal 
prime contracts and subcontracts and which shall address, 
at a minimum, the following: 
‘‘(A) Eligibility criteria for program participants, 
including any restrictions on the number of mentor-protege 
relationships permitted for each participant. 
‘‘(B) The types of developmental assistance to be pro-
vided by mentors, including how the assistance provided 
shall improve the competitive viability of the proteges. 
‘‘(C) Whether any developmental assistance provided 
by a mentor may affect the status of a program participant 
as a small business concern due to affiliation. 
‘‘(D) The length of mentor-protege relationships. 
‘‘(E) The effect of mentor-protege relationships on con-
tracting. 
‘‘(F) Benefits that may accrue to a mentor as a result 
of program participation. 
‘‘(G) Reporting requirements during program participa-
tion. 
‘‘(H) Postparticipation reporting requirements. 
‘‘(I) The need for a mentor-protege pair, if accepted 
to participate as a pair in a mentor-protege program of 
any Federal department or agency, to be accepted to partici-
pate as a pair in all Federal mentor-protege programs.
H. R. 4310—447 
‘‘(J) Actions to be taken to ensure benefits for proteges 
and to protect a protege against actions by a mentor that— 
‘‘(i) may adversely affect the protege’s status as 
a small business concern; or 
‘‘(ii) provide disproportionate economic benefits to 
the mentor relative to those provided the protege. 
‘‘(4) LIMITATION ON APPLICABILITY.—Paragraph (1) does not 
apply to the following: 
‘‘(A) Any mentor-protege program of the Department 
of Defense. 
‘‘(B) Any mentoring assistance provided under a Small 
Business Innovation Research Program or a Small Business 
Technology Transfer Program. 
‘‘(C) Until the date that is 1 year after the date on 
which the Administrator issues regulations under para-
graph (3), any Federal department or agency operating 
a mentor-protege program in effect on the date of enact-
ment of this section. 
‘‘(c) REPORTING.— 
‘‘(1) IN GENERAL.—Not later than 2 years after the date 
of enactment of this section, and annually thereafter, the 
Administrator shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate a report that— 
‘‘(A) identifies each Federal mentor-protege program; 
‘‘(B) specifies the number of participants in each such 
program, including the number of participants that are— 
‘‘(i) small business concerns; 
‘‘(ii) small business concerns owned and controlled 
by service-disabled veterans; 
‘‘(iii) qualified HUBZone small business concerns; 
‘‘(iv) small business concerns owned and controlled 
by socially and economically disadvantaged individuals; 
or 
‘‘(v) small business concerns owned and controlled 
by women; 
‘‘(C) describes the type of assistance provided to pro-
teges under each such program; 
‘‘(D) describes the benefits provided to mentors under 
each such program; and 
‘‘(E) describes the progress of proteges under each such 
program with respect to competing for Federal prime con-
tracts and subcontracts. 
‘‘(2) PROVISION OF INFORMATION.—The head of each Federal 
department or agency carrying out a mentor-protege program 
shall provide to the Administrator, on an annual basis, the 
information necessary for the Administrator to submit a report 
required under paragraph (1). 
‘‘(d) DEFINITIONS.—In this section, the following definitions 
apply: 
‘‘(1) MENTOR.—The term ‘mentor’ means a for-profit busi-
ness concern, of any size, that— 
‘‘(A) has the ability to assist and commits to assisting 
a protege to compete for Federal prime contracts and sub-
contracts; and 
‘‘(B) satisfies any other requirements imposed by the 
Administrator.
H. R. 4310—448 
‘‘(2) MENTOR-PROTEGE
PROGRAM.—The term ‘mentor-pro-
tege program’ means a program that pairs a mentor with 
a protege for the purpose of assisting the protege to compete 
for Federal prime contracts and subcontracts. 
‘‘(3) PROTEGE.—The term ‘protege’ means a small business 
concern that— 
‘‘(A) is eligible to enter into Federal prime contracts 
and subcontracts; and 
‘‘(B) satisfies any other requirements imposed by the 
Administrator. 
‘‘(e) CURRENT MENTOR PROTEGE AGREEMENTS.—Mentors and 
proteges with approved agreement in a program operating pursuant 
to subsection (b)(4)(C) shall be permitted to continue their relation-
ship according to the terms specified in their agreement until the 
expiration date specified in the agreement. 
‘‘(f) SUBMISSION OF AGENCY PLANS.—Agencies operating mentor 
protege programs pursuant to subsection (b)(4)(C) shall submit the 
plans specified in subsection (b)(1)(A) to the Administrator within 
6 months of the promulgation of rules required by subsection (b)(3). 
The Administrator shall provide initial comments on each plan 
within 60 days of receipt, and final approval or denial of each 
plan within 180 days after receipt.’’. 
PART IV—TRANSPARENCY IN 
SUBCONTRACTING 
SEC. 1651. LIMITATIONS ON SUBCONTRACTING. 
The Small Business Act (15 U.S.C. 631 et seq.) is amended 
by inserting before section 47 (as redesignated by section 1641 
of this subtitle) the following: 
‘‘SEC. 46. LIMITATIONS ON SUBCONTRACTING. 
‘‘(a) IN GENERAL.—If awarded a contract under section 8(a), 
8(m), 15(a), 31, or 36, a covered small business concern— 
‘‘(1) in the case of a contract for services, may not expend 
on subcontractors more than 50 percent of the amount paid 
to the concern under the contract; 
‘‘(2) in the case of a contract for supplies (other than 
from a regular dealer in such supplies), may not expend on 
subcontractors more than 50 percent of the amount, less the 
cost of materials, paid to the concern under the contract; 
‘‘(3) in the case of a contract described in paragraphs (1) 
and (2)— 
‘‘(A) shall determine for which category, services (as 
described in paragraph (1)) or supplies (as described in 
paragraph (2)), the greatest percentage of the contract is 
awarded; 
‘‘(B) shall determine the amount awarded under the 
contract for that category of services or supplies; and 
‘‘(C) may not expend on subcontractors, with respect 
to the amount determined under subparagraph (B), more 
than 50 percent of that amount; and 
‘‘(4) in the case of a contract for supplies from a regular 
dealer in such supplies, shall supply the product of a domestic 
small business manufacturer or processor, unless a waiver of 
such requirement is granted—