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the APPF Code of Conduct or terms 
of such subcontract or agreement; and 
(II) to terminate the subcontract 
or such agreement, if the failure to 
comply is a gross violation or is re-
peated; and 
(v) authority for the Commander, 
International Security Assistance Force (or 
his designee)— 
(I) to provide an arming author-
ization for APPF personnel author-
ized to perform activities at a military 
installation or facility in Afghanistan 
at which members of the Armed 
Forces deployed to Afghanistan are 
garrisoned or housed; 
(II) to account for and keep ap-
propriate records of APPF personnel 
authorized to perform activities at a 
military installation or facility in Af-
ghanistan at which members of the 
Armed Forces deployed to Afghani-
stan are garrisoned or housed, includ-
ing on a database referred to as the 
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Synchronized 
Predeployment 
and 
Operational Tracker; and 
(III) to consult with the Minister 
of Interior of Afghanistan regarding 
rules on the use of force for APPF 
personnel. 
(B) The Minister of Interior of Afghani-
stan is committed to ensuring that sufficient 
numbers of APPF personnel are trained to 
match demand and attrition. 
(C) Sufficient clarity exists with regard to 
command and control of APPF personnel and 
the role of risk management consultants. 
(D) The program established pursuant to 
section 1225 of the National Defense Author-
ization Act for Fiscal Year 2010 (Public Law 
111–84; 22 U.S.C. 2785 note) is sufficient to— 
(i) account for the transfer of any 
contractor-acquired, United States Govern-
ment-owned defense articles to the APPF; 
and 
(ii) conduct end-use monitoring, in-
cluding an inventory of the existence and 
completeness of any such defense articles; 
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(E) Mechanisms are in place to ensure 
that there is no additional cost to the United 
States for— 
(i) a weapon used in the performance 
of APPF services under a subcontract of a 
contract of the Department of Defense, or 
through an agreement between the United 
States and Afghanistan, if such a weapon 
is a United States Government-owned 
weapon; and 
(ii) any assistance also provided 
through the Afghan Security Forces Fund 
for support to APPF. 
(F) The Minister of Interior of Afghani-
stan has established the elements required by 
subparagraphs (A) through (F) of section 
862(a)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 
110–181). For purposes of the preceding sen-
tence, the terms ‘‘personnel performing private 
security functions in an area of combat oper-
ations or other significant military operations’’, 
‘‘contractor’’, and ‘‘contractor personnel’’, as 
used in section 862 of such Act, mean members 
of the APPF. 
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(G) The Secretary is confident the security 
provided to supply convoys, to Department of 
Defense construction projects, and to Armed 
Forces deployed to Afghanistan will not be de-
graded. 
(2) ADDITIONAL
LIMITATION.—None of the 
funds available to the Department of Defense for 
fiscal year 2013 for the Afghanistan Security Forces 
Fund may be obligated or expended for infrastruc-
ture improvements at a APPF training center. 
(3) QUARTERLY REPORTS.— 
(A) ASSESSMENT REQUIRED.—Each fiscal 
year quarter during fiscal years 2013 and 2014, 
the Secretary of Defense shall conduct an as-
sessment of the APPF. 
(B) REPORTS.—Thirty days following the 
end of each quarter of fiscal years 2013 and 
2014, the Secretary shall submit a report to the 
congressional defense committees of each as-
sessment conducted under subparagraph (A). 
(C) MATTERS COVERED.—Each such re-
port shall include— 
(i) a detailed assessment of the ability 
of the APPF to perform the essential tasks 
identified by the assessment team; 
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(ii) an identification and evaluation of 
measures of effectiveness; 
(iii) a description of the size of the 
APPF and an assessment of the suffi-
ciency of its recruiting and training; and 
(iv) a discussion of the issues the Sec-
retary considers significant, and any rec-
ommendations to address those issues or 
other recommendations to improve future 
performance of the APPF, as the Sec-
retary considers appropriate. 
(D) FIRST REPORT.—The first quarterly 
report submitted after the date of the enact-
ment of this Act shall include an estimate of 
the cost to the Department of Defense of the 
APPF, including funds within the Afghan Secu-
rity Forces Fund and estimated contractual 
costs for fiscal years 2013 and 2014. 
(E) A report submitted following the end 
of the second and fourth quarter of a fiscal year 
shall include a comparison of the cost to the 
Department of Defense (both direct and to con-
tractors of the Department of Defense) for the 
preceding six months of— 
(i) the use of the APPF; and 
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(ii) the historical use of private secu-
rity contractors for a similar six-month pe-
riod. 
(4) AGREEMENTS.—The Secretary shall submit 
to the congressional defense committees a copy of 
each agreement signed by the United States and Af-
ghanistan for services of the APPF for the Depart-
ment of Defense during the first six months fol-
lowing the date of the enactment of this Act. 
TITLE XVI—INDUSTRIAL BASE 
MATTERS 
Subtitle A—Defense Industrial 
Base Matters 
SEC. 1601. DISESTABLISHMENT OF DEFENSE MATERIEL 
READINESS BOARD. 
(a) DISESTABLISHMENT OF BOARD.—The Defense 
Materiel Readiness 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 READI-
NESS FUND.—The Defense Strategic Readiness Fund es-
tablished by section 872(d) of the National Defense Au-
thorization Act for Fiscal Year 2008 (Public Law 110– 
181; 10 U.S.C. 117 note) is hereby closed. 
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(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 BOY-
COTTS. 
Section 2505 of title 10, United States Code, is 
amended— 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) ASSESSMENT OF EXTENT OF EFFECTS OF FOR-
EIGN BOYCOTTS.—Each assessment under subsection (a) 
shall include a separate discussion and presentation re-
garding the extent to which the national technology and 
industrial base is affected by foreign boycotts. The discus-
sion and presentation regarding foreign boycotts shall— 
‘‘(1) identify sectors of the national technology 
and industrial base being affected by foreign boy-
cotts; 
‘‘(2) assess the harm to the national technology 
and industrial base as a result of such boycotts; and 
‘‘(3) identify actions necessary to minimize the 
effects of foreign boycotts on the national technology 
and industrial base.’’. 
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SEC. 1603. ADVANCING INNOVATION PILOT PROGRAM. 
(a) PILOT PROGRAM.—The Secretary of Defense, 
acting through the Assistant Secretary of Defense for Re-
search and Engineering, may establish and implement a 
pilot program, to be known as the ‘‘Advancing Innovation 
Pilot Program’’, in furtherance of the national security ob-
jectives in section 2501(a) of title 10, United States Code. 
(b) PURPOSE.—The purpose of the pilot program is 
to accelerate development and fielding of research innova-
tions from qualifying institutions. 
(c) AVAILABILITY OF FUNDS.—Of the funds author-
ized and appropriated, or otherwise made available, for re-
search, development, test and evaluation, the Secretary 
may allocate funding to qualifying institutions in accord-
ance with this subsection. Such funding shall be used to 
evaluate the potential of fielding or commercialization of 
existing discoveries, including— 
(1) proof of concept research or prototype de-
velopment; and 
(2) activities that contribute to determining a 
project’s path to fielding or commercialization of 
dual-use technologies, including technical validations, 
market research, determination of intellectual prop-
erty rights, and investigating military or commercial 
opportunities. 
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(d) IMPLEMENTATION.—Prior to obligation or execu-
tion of funding under the pilot program, the Secretary 
shall develop and issue guidance to implement the pilot 
program. Such guidance shall, at a minimum— 
(1) require that funding allocated under the 
pilot program shall be done using a competitive, 
merit-based process; 
(2) ensure that qualifying institutions establish 
a rigorous, diverse review board for program execu-
tion that shall be comprised of experts in 
translational and proof of concept research, includ-
ing 
representatives 
that 
provide 
expertise 
in 
transitioning technology, financing mechanisms, in-
tellectual property rights, and advancement of small 
business concerns; 
(3) ensure that technology validation milestones 
are established; and 
(4) enable the Assistant Secretary to reallocate 
funding with the pilot program from poor per-
forming projects to those with more potential. 
(e) LIMITATION.—Funding made available under the 
pilot program shall not be used for basic research, or to 
fund the acquisition of research equipment or supplies not 
directly related to fielding activities to meet military re-
quirements or commercialization of dual-use technologies. 
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(f) REPORT.—Not later than 90 days after the com-
pletion of the pilot program, the Secretary shall submit 
to the congressional defense committees a report evalu-
ating the effectiveness of the activities of the pilot pro-
gram. The report shall include— 
(1) a detailed description of the execution of the 
pilot program, including incentives and activities un-
dertaken by review board experts; 
(2) an accounting of the funds used in the pilot 
program; 
(3) a detailed description of the institutional 
and proposal selection process; 
(4) a detailed compilation of results achieved by 
the pilot program; 
(5) an analysis of the program’s effectiveness, 
with data supporting the analysis; and 
(6) recommendations for advancing innovation 
and otherwise improving the transition of technology 
to meet Department of Defense requirements. 
(g) DEFINITIONS.—In this section: 
(1) 
QUALIFYING
INSTITUTION.—The 
term 
‘‘qualifying institution’’ means any entity at which 
research and development activities are conducted 
and that has past performance in technology transi-
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tion or commercialization of third-party research, in-
cluding— 
(A) an institution of higher education or 
other nonprofit entity; and 
(B) a for-profit entity. 
(2) RESEARCHER.—The term ‘‘researcher’’ 
means a university or Federal laboratory that con-
ducts basic research. 
(3) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given such term in section 101 of the High-
er Education Act of 1965. 
(4) DUAL-USE.—The term ‘‘dual-use’’ has the 
meaning provided in section 2500(2) of title 10, 
United States Code. 
(h) TERMINATION.—The pilot program conducted 
under this section shall terminate on September 30, 2017. 
SEC. 1604. NATIONAL SECURITY STRATEGY FOR NATIONAL 
TECHNOLOGY 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 ‘‘objectives concerning’’ and in-
serting ‘‘strategy for’’. 
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(B) Subsection (a) is amended— 
(i) in the subsection heading, by strik-
ing ‘‘OBJECTIVES’’ and inserting ‘‘STRAT-
EGY’’; 
(ii) by striking ‘‘It is the policy of’’ 
and all that follows through ‘‘objectives:’’ 
and inserting the following: ‘‘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 tech-
nology and industrial base is capable of 
achieving the following national security 
objectives:’’; and 
(iii) by adding at the end the fol-
lowing new paragraphs: 
‘‘(9) Ensuring reliable sources of materials that 
are critical to national security, such as specialty 
metals, armor plate and rare earth elements. 
‘‘(10) Reducing, to the maximum extent prac-
ticable, the presence of counterfeit parts in the sup-
ply chain and the risk associated with such parts.’’. 
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(2) CLERICAL AMENDMENT.—The item relating 
to section 2501 in the table of sections at the begin-
ning 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 para-
graph (2); and 
(3) by inserting after paragraph (2) (as so re-
designated) the following new paragraph (3): 
‘‘(3) Based on the assessments prepared pursu-
ant to section 2505 of this title— 
‘‘(A) a description of any mitigation strate-
gies 
necessary 
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 in-
dustrial base.’’. 
(c) REQUIREMENT FOR CONSIDERATION OF STRAT-
EGY IN ACQUISITION PLANS.—Section 2440 of such title 
is amended by inserting after ‘‘base’’ the following: ‘‘, in 
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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 sub-
section (c), and in that subsection by striking ‘‘sub-
section (c).’’ in the first sentence and inserting ‘‘sec-
tion 2501 of title 10, United States Code.’’. 
Subtitle B—Department of Defense 
Activities Related to Small Busi-
ness Matters 
SEC. 1611. PILOT PROGRAM TO ASSIST IN THE GROWTH 
AND DEVELOPMENT OF ADVANCED SMALL 
BUSINESS CONCERNS. 
(a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec-
retary of Defense shall establish a pilot program within 
the Department of Defense to assist in the growth and 
development of advanced small business concerns in ac-
cordance with this section. 
(b) REQUIREMENTS OF PILOT PROGRAM.— 
(1) RESTRICTED
COMPETITION
FOR
CERTAIN 
CONTRACTS.—Under the pilot program and except 
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as provided under paragraph (2)(B), competition for 
contract awards may be restricted to advanced small 
business concerns if— 
(A) the anticipated award price of the con-
tract (including options) is reasonably expected 
to exceed $25,000,000; 
(B) the Procurement Center Representa-
tive of the Small Business Administration or 
the Director of Small Business Programs of the 
Department of Defense determines that, if the 
contract were not awarded under the pilot pro-
gram, the contract would likely be awarded to 
an entity other than a small business concern; 
(C) there is a reasonable expectation that 
at least two advanced small business concerns 
will submit offers with respect to the contract; 
(D) such advanced small business concerns 
agree to the requirements specified in section 
15(o) of the Small Business Act (15 U.S.C. 
644(o)) (relating to percentage of work under 
the contract to be performed by the concern), 
except that work performed by other advanced 
small business concerns or by small business 
concerns shall be considered as work performed 
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by the prime contractor for purposes of such re-
quirements; and 
(E) the contract award can be made at a 
fair market price. 
(2) ELIGIBILITY.— 
(A) ADVANCED
SMALL
BUSINESS
CON-
CERN.—An entity shall be considered an ad-
vanced small business concern and eligible for 
participation in the pilot program if the enti-
ty— 
(i) is independently owned and oper-
ated and is not dominant in its field of op-
eration; and 
(ii) has fewer than— 
(I) twice the number of employ-
ees the Small Business Administration 
has assigned as a size standard to the 
North American Industrial Classifica-
tion Standard code in which the entity 
is operating; or 
(II) three times the average an-
nual receipts the Small Business Ad-
ministration has assigned as a size 
standard to the North American In-
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dustrial Classification Standard code 
in which the entity is operating. 
(B) SMALL
BUSINESS
CONCERN.—Not-
withstanding paragraph (1), a small business 
concern may submit an offer for any contract 
under the pilot program. 
(3) CONSIDERATION AND NOTICE TO PUBLIC.— 
With respect to a contract opportunity determined to 
meet the criteria specified in paragraph (1), a con-
tracting officer for the Department of Defense 
shall— 
(A) consider awarding a contract under the 
pilot program before using full and open com-
petition for such contract; and 
(B) provide notice of the contract oppor-
tunity (including the eligibility requirements of 
the contract opportunity) in accordance with 
the Federal Acquisition Regulation and other 
applicable guidelines. 
(4) RELATIONSHIP
TO
SMALL
BUSINESS
ACT 
PROGRAMS.— 
(A) An advanced small business concern 
shall not be eligible for any assistance provided 
to small businesses by the Small Business Act 
(15 U.S.C. 637 et seq.) or the Small Business 
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Investment Act of 1958 22 (15 U.S.C. 661 et 
seq.), unless eligibility is expressly provided 
through the pilot program established by this 
Act, and contracts awarded pursuant to the 
pilot program shall not be counted toward the 
achievement of the small business prime or sub-
contracting goals established by the Small Busi-
ness Act (15 U.S.C. 644). 
(B) An advanced small business concern 
shall enter into a subcontracting plan in accord-
ance with section 8(d) of the Small Business 
Act (15 U.S.C. 637(d)). 
(C) Nothing in this section authorizes a 
Procurement Center Representative or an em-
ployee of the Office of Small Business Pro-
grams to provide assistance to advanced small 
business concerns or to advocate for the restric-
tion of competition to advanced small business 
concerns. 
(c) IMPLEMENTATION.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense, in consultation with the Administrator of the 
Small Business Administration, shall develop and issue 
guidance to implement the pilot program. The guidance 
shall— 
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(1) identify criteria under which the pilot pro-
gram is evaluated, including a methodology to collect 
data during the course of the pilot program to facili-
tate an assessment at the conclusion of the pilot pro-
gram; 
(2) permit a self-certification for eligibility for 
participation in the pilot program; 
(3) ensure that any self-certification requires 
the concern involved to meet the requirements of the 
Small Business Administration regarding ownership, 
control, and affiliation (as set forth in section 
121.103 of title 13 of the Code of Federal Regula-
tions); 
(4) establish an appeals process to handle chal-
lenges to self-certifications of advanced small busi-
ness concerns, with the certification of eligibility re-
siding with the Small Business Administration’s Of-
fice of Hearings and Appeals; 
(5) identify a method to reimburse the Small 
Business Administration for additional costs to the 
Administration relating to such self-certifications; 
(6) establish a methodology for identifying and 
tracking program participants, including reporting 
on contracts awarded to program participants using 
the Federal Procurement Data System; and 
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(7) ensure that the pilot program does not su-
persede goals or programs authorized by the Small 
Business Act (15 U.S.C. 637 et seq.) or the Small 
Business Investment Act of 1958 22 (15 U.S.C. 661 
et seq.) or count toward the achievement of the 
small business prime or subcontracting goals estab-
lished by the Small Business Act (15 U.S.C. 644). 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of the enactment of this Act, and annually 
thereafter for the duration of the pilot program, the Sec-
retary of Defense shall submit to the appropriate congres-
sional committees a report on the pilot program that in-
cludes each of the following: 
(1) The number of contracts awarded in the 
prior year under the pilot program. 
(2) The value of the contracts awarded under 
the pilot program and a description of the work car-
ried out under such contracts. 
(3) The number of program participants under 
the pilot program. 
(4) An assessment of the success of the pilot 
program based on the criteria described in sub-
section (c)(1). 
(5) Such recommendations as the Secretary 
considers appropriate, including a recommendation 
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regarding whether to extend the pilot program or 
terminate it early. 
(e) TERMINATION.—The pilot program shall termi-
nate on the date that is three years after the date on which 
the guidance for the pilot program is issued pursuant to 
subsection (c). 
(f) DEFINITIONS.—In this section: 
(1) ADVANCED SMALL BUSINESS CONCERN.— 
The term ‘‘advanced small business concern’’ means 
an entity that meets the requirements specified in 
subsection (b)(2)(A). 
(2) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means each of the following: 
(A) The Committees on Armed Services 
and on Small Business and Entrepreneurship of 
the Senate. 
(B) The Committees on Armed Services 
and on Small Business of the House of Rep-
resentatives. 
(3) OFFICE OF SMALL BUSINESS PROGRAMS.— 
The term ‘‘Office of Small Business Programs’’ 
means the Office of Small Business Programs de-
scribed in section 144(b) of title 10, United States 
Code. 
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(4) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the program established by the Sec-
retary of Defense under subsection (a). 
(5) 
PROCUREMENT
CENTER
REPRESENTA-
TIVE.—The term ‘‘Procurement Center Representa-
tive’’ has the meaning provided in section 15 of the 
Small Business Act (15 U.S.C. 644). 
(6) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning provided 
under section 3(a) of the Small Business Act (15 
U.S.C. 632(a)). 
SEC. 1612. ROLE OF THE DIRECTORS OF SMALL BUSINESS 
PROGRAMS 
IN 
REQUIREMENTS 
DEVELOP-
MENT AND ACQUISITION DECISION PROC-
ESSES OF THE DEPARTMENT OF DEFENSE. 
(a) GUIDANCE REQUIRED.—The Secretary of De-
fense shall develop and issue guidance to ensure that the 
head of each Office of Small Business Programs in the 
Department of Defense is a participant in requirements 
development and acquisition decision processes— 
(1) of the Department, in the case of the Direc-
tor 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 
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the Department of the Army, in the Department of 
the Navy, and in the Department of the Air Force. 
(b) MATTERS
TO BE INCLUDED.—Such guidance 
shall, at a minimum— 
(1) require the Director of Small Business Pro-
grams in the Department of Defense— 
(A) to serve as an advisor to the Defense 
Acquisition Board; and 
(B) to serve as an advisor to the Informa-
tion Technology Acquisition Board; and 
(2) require coordination between the chiefs of 
the Armed Forces and the service acquisition execu-
tives, as appropriate (or their designees), and the 
Director of Small Business Programs in each mili-
tary department during the process for approval 
of— 
(A) a requirements document, as defined 
in section 2547 of title 10, United States Code; 
and 
(B) acquisition strategies or plans. 
SEC. 1613. SMALL BUSINESS ADVOCATE FOR DEFENSE 
AUDIT AGENCIES. 
(a) SMALL BUSINESS ADVOCATE.—Subchapter II of 
chapter 8 of title 10, United States Code, is amended by 
adding at the end the following new section: 
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‘‘§ 204. Small Business Advocate for defense audit 
agencies 
‘‘(a) SMALL BUSINESS ADVOCATE.—The Secretary 
of Defense shall designate within each defense audit agen-
cy an official as the Small Business Advocate to have the 
duties described in subsection (b) and such other respon-
sibilities as may be determined by the Secretary. 
‘‘(b) DUTIES.—The Small Business Advocate at a de-
fense audit agency shall— 
‘‘(1) advise the Director of the defense audit 
agency on all issues related to small business con-
cerns; 
‘‘(2) serve as the defense audit agency’s pri-
mary point of contact and source of information for 
small business concerns; and 
‘‘(3) collect relevant data and monitor the de-
fense audit agency’s conduct of audits of small busi-
ness concerns, including— 
‘‘(A) monitoring the timeliness of audit 
closeouts for small business concerns; and 
‘‘(B) monitoring the responsiveness of the 
agency to issues or other matters raised by 
small business concerns; and 
‘‘(4) develop and implement processes and pro-
cedures to improve the performance of the defense 
audit agency related to the timeliness of audits of 
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small business concerns and the responsiveness of 
the agency to issues or other matters raised by small 
business concerns. 
‘‘(c) DEFENSE AUDIT AGENCY DEFINED.—In this 
section, the term ‘defense audit agency’ means the De-
fense Contract Audit Agency and the Defense Contract 
Management Agency.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 8 of such title is amended by 
inserting after the item relating to section 203 the fol-
lowing new item: 
‘‘204. Small Business Advocate for defense audit agencies.’’. 
SEC. 1614. INDEPENDENT ASSESSMENT OF FEDERAL PRO-
CUREMENT 
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 Sec-
retary of Defense shall enter into a contract with a feder-
ally funded research and development center to conduct 
an independent assessment of the Department’s procure-
ment performance related to small business concerns. 
(b) MATTERS COVERED.—The assessment under 
subsection (a) shall, at a minimum, include— 
(1) a description of the industrial composition 
of companies receiving subcontracts pursuant to the 
test program for the negotiation of comprehensive 
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small business subcontracting plans pursuant to sec-
tion 834 of the National Defense Authorization Act 
for Fiscal Years 1990 and 1991 (Public Law 101– 
189; 15 U.S.C. 637 note); 
(2) a comparison of the industrial composition 
of prime contractors participating in such test pro-
gram and the industrial composition of all prime 
contractors of the Department of Defense; 
(3) a determination of barriers to accurately 
capturing data on small business prime contracting 
and subcontracting, including an examination of the 
reliability of the information technology systems of 
the Department that are used to track such data; 
(4) recommendations for improving the quality 
and availability of data regarding small business 
prime contracting and subcontracting performance; 
(5) recommendations to improve and inform ne-
gotiations regarding small business contract goals 
for the Department; 
(6) an examination of the execution of small 
business subcontracting plans, including an assess-
ment of the degree to which initial teaming agree-
ments are not maintained through the performance 
of contracts; 
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(7) an examination of the extent to which the 
Department adheres to current policies and guide-
lines relating to small business prime contracting 
and subcontracting goals; 
(8) recommendations for increasing opportuni-
ties for small business concerns owned and con-
trolled by service-disabled veterans (as defined by 
section 3(q) of the Small Business Act (15 U.S.C. 
632(q)) to do business with the Department of De-
fense; 
(9) an examination of the extent to which the 
Department bundles, consolidates, or otherwise 
groups requirements into contracts that are unsuit-
able for award to small businesses, and the effects 
that such practices have on small business participa-
tion; 
(10) recommendations for increasing small 
business prime contracting and subcontracting op-
portunities with the Department; and 
(11) recommendations for steps that can be 
taken to prevent abuses and ensuring that small 
business contracts are in fact going to small busi-
nesses. 
(c) REPORT.—Not later than January 1, 2014, the 
Secretary shall submit to the congressional defense com-
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mittees a report on the independent assessment conducted 
under this section. 
SEC. 1615. ASSESSMENT OF SMALL BUSINESS PROGRAMS 
TRANSITION. 
(a) INDEPENDENT REVIEW AND ASSESSMENT.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall select an appropriate 
entity outside the Department of Defense to conduct an 
independent review and assessment of the transition of 
technologies developed by small business, such as those de-
veloped under the Small Business Innovation Research 
Program, into major weapon systems and major auto-
mated information systems for the Department of De-
fense. 
(b) ELEMENTS.—The review and assessment re-
quired by subsection (a) shall include the following: 
(1) An analysis of a representative sample of 
major weapon systems and major automated infor-
mation systems to determine the content of the sys-
tems from small businesses, including components 
transitioned from the Small Business Innovation Re-
search Program. 
(2) An analysis of established or ad hoc proc-
esses to allow program offices to monitor, evaluate, 
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and transition small business-developed technologies 
into their program. 
(3) Recommendations for developing a system-
atic and sustained process for monitoring, evalu-
ating, and transitioning small business-developed 
technologies for use by the entire defense acquisition 
system of the Department of Defense, including data 
collection and measures of effectiveness and per-
formance. 
(c) REPORT.— 
(1) REPORT REQUIRED.—Not later than 120 
days after the date of the enactment of this Act, the 
entity conducting the review and assessment under 
subsection (a) shall submit to the Secretary and the 
congressional defense committees a report con-
taining— 
(A) the results of the review and assess-
ment; and 
(B) recommendations for improving the 
process for managing the transition and inte-
gration of technologies developed by small busi-
ness (including under the Small Business Inno-
vation Research Program) into major weapons 
systems and major automated information sys-
tems. 
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(2) ADDITIONAL EVALUATION REQUIRED.—Not 
later than 30 days after the date on which the con-
gressional defense committees receive the report re-
quired by paragraph (1), the Secretary shall submit 
to such committees an evaluation by the Secretary 
of the results and recommendations contained in 
such report. 
(d) SBIR PROGRAM DEFINED.—In this section, the 
term ‘‘Small Business Innovation Research Program’’ has 
the meaning provided such term by section 2500(11) of 
title 10, United States Code. 
SEC. 1616. ADDITIONAL RESPONSIBILITIES OF INSPECTOR 
GENERAL OF THE DEPARTMENT OF DE-
FENSE. 
(a) REQUIREMENT
FOR 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 peer reviews of Department of 
Defense audit agencies in accordance with and in 
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such frequency as provided by Government auditing 
standards as established by the Comptroller General 
of the United States.’’. 
(b) REQUIREMENT FOR ADDITIONAL INFORMATION 
IN SEMIANNUAL REPORTS.—Section 8(f) of such Act is 
amended by striking paragraph (1) and inserting the fol-
lowing: 
‘‘(1) Each semiannual report prepared by the Inspec-
tor 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 Se-
curity and Governmental Affairs of the Senate and the 
Committees on Armed Services and on Oversight and Gov-
ernment Reform of the House of Representatives and to 
other appropriate committees or subcommittees of Con-
gress. Each such report shall include— 
‘‘(A) information concerning the numbers and 
types of contract audits conducted by the Depart-
ment during the reporting period; and 
‘‘(B) information concerning any Department of 
Defense audit agency that, during the reporting pe-
riod, has either failed an audit or is overdue for a 
peer review required to be conducted in accordance 
with subsection (c)(10).’’. 
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SEC. 1617. RESTORATION OF 1 PERCENT FUNDING FOR AD-
MINISTRATIVE 
EXPENSES 
OF 
COMMER-
CIALIZATION READINESS PROGRAM OF DE-
PARTMENT OF DEFENSE. 
(a) RESTORATION.—Section 9(y) of the Small Busi-
ness 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 fol-
lowing new paragraph (4): 
‘‘(4) FUNDING.—For payment of expenses in-
curred to administer the Commercialization Readi-
ness Program under this subsection, the Secretary 
of Defense and each Secretary of a military depart-
ment is authorized to use not more than an amount 
equal to 1 percent of the funds available to the De-
partment of Defense or the military department pur-
suant 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 
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for Fiscal Year 2012 (Public Law 112–81; 125 Stat. 
1854) is amended— 
(1) by striking ‘‘subsection (y)—’’ and all that 
follows through ‘‘the following:’’ and inserting ‘‘sub-
section (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 Busi-
ness 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 sec-
tion 15(l) of such Act (15 U.S.C. 644(l)) is amended to 
read as follows: 
‘‘(1) ASSIGNMENT AND ROLE.—The Adminis-
trator shall assign to each major procurement center 
a procurement center representative with such as-
sistance as may be appropriate.’’. 
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(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 re-
sponsibilities assigned by the Administration, a 
breakout’’ and inserting the following: 
‘‘(2) ACTIVITIES.—A’’; 
(2) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) attend any provisioning conference or 
similar evaluation session during which a deter-
mination may be made with respect to the pro-
curement method to be used to satisfy a re-
quirement, review any acquisition plan with re-
spect to a requirement, and make recommenda-
tions regarding procurement method determina-
tions and acquisition plans;’’; 
(3) 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 services’’; and 
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(C) by striking ‘‘limitations’’ and inserting 
‘‘barriers’’; 
(4) in subparagraph (C) by striking ‘‘(C) review 
restrictions on competition’’ and inserting the fol-
lowing: 
‘‘(C) review barriers to small business par-
ticipation in Federal contracting’’; 
(5) by striking subparagraph (D) and inserting 
the following: 
‘‘(D) review any bundled or consolidated 
solicitation or contract in accordance with this 
Act;’’; 
(6) by striking subparagraph (E) and inserting 
the following: 
‘‘(E) have electronic access to procurement 
records, acquisition plans developed or in devel-
opment, and other data of the procurement cen-
ter commensurate with the level of such rep-
resentative’s approve security clearance classi-
fication;’’; and 
(7) by striking subparagraphs (F) and (G) and 
inserting the following: 
‘‘(F) receive, from personnel responsible 
for reviewing unsolicited proposals, copies of 
unsolicited proposals from small business con-
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cerns and any information on outcomes relating 
to such proposals; 
‘‘(G) participate in any session or planning 
process and review any documents with respect 
to a decision to convert an activity performed 
by a small business concern to an activity per-
formed by a Federal employee; 
‘‘(H) be an advocate for the maximum 
practicable utilization of small business con-
cerns in Federal contracting, including by advo-
cating against the bundling of contract require-
ments when not justified; and 
‘‘(I) carry out any other responsibility as-
signed 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 representative’’ and inserting the fol-
lowing: 
‘‘(3) APPEALS.—A procurement center rep-
resentative’’. 
(e) NOTIFICATION AND INCLUSION.—Paragraph (4) 
of section 15(l) of such Act (15 U.S.C. 644(l)) is amended 
to read as follows: 
‘‘(4) NOTIFICATION AND INCLUSION.—Agency 
heads shall ensure that procurement center rep-
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resentatives are included in applicable acquisition 
planning processes.’’. 
(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 
representative assigned under this subsection 
shall— 
‘‘(i) be a full-time employee of the Ad-
ministration; 
‘‘(ii) be fully qualified, technically 
trained, and familiar with the goods and 
services procured by the major procure-
ment center to which that representative is 
assigned; and 
‘‘(iii) have a Level III Federal Acqui-
sition Certification in Contracting (or any 
successor certification) or the equivalent 
Department of Defense certification, ex-
cept that any person serving in such a po-
sition on the date of enactment of this 
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clause may continue to serve in that posi-
tion for a period of 5 years without the re-
quired 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 establish personnel positions for procure-
ment center representatives assigned under’’. 
(g) MAJOR PROCUREMENT CENTER DEFINED.—Sec-
tion 15(l)(6) of such Act (15 U.S.C. 644(l)(6)) is amend-
ed— 
(1) by striking ‘‘(6) For purposes’’ and insert-
ing the following: 
‘‘(6) 
MAJOR
PROCUREMENT
CENTER
DE-
FINED.—For purposes’’; and 
(2) by striking ‘‘other than commercial items 
and which has the potential to incur significant sav-
ings as the result of the placement of a breakout 
procurement center representative’’ and inserting 
‘‘goods or services, including goods or services that 
are commercially available’’. 
(h) TRAINING.—Section 15(l)(7) of such Act (15 
U.S.C. 644(l)(7)) is amended— 
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(1) by striking the paragraph enumerator and 
inserting the following: 
‘‘(7) TRAINING.—’’; 
(2) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) AUTHORIZATION.—At such times as 
the Administrator deems appropriate, a pro-
curement center representative shall provide 
training for contracting officers, other appro-
priate personnel of the procurement center to 
which such representative is assigned, and small 
businesses groups seeking to do business with 
such procurement center. Such training shall 
acquaint the participants with the provisions of 
this subsection and shall instruct the partici-
pants in methods designed to further the pur-
poses of this subsection. 
‘‘(B) LIMITATION.—A procurement center 
representative may provide training under sub-
paragraph (A) only to the extent that the train-
ing does not interfere with the representative 
carrying out other activities under this sub-
section.’’; and 
(3) in subparagraph (B)— 
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(A) by striking ‘‘(B) The breakout pro-
curement center representative’’ and inserting 
the following: 
‘‘(8) ANNUAL BRIEFING AND REPORT.—A pro-
curement center representative’’; and 
(B) by striking ‘‘sixty’’ and inserting ‘‘60’’. 
SEC. 1622. SMALL BUSINESS ACT CONTRACTING REQUIRE-
MENTS 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 Acquisi-
tion Certification in Contracting (or any successor certifi-
cation) or the equivalent Department of Defense certifi-
cation 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 
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the Small Business Act (15 U.S.C. 636(j)(10)(D)(i)) is 
amended by inserting after ‘‘to assist such Program Par-
ticipant.’’ the following: ‘‘The Business Opportunity Spe-
cialist shall have a Level I Federal Acquisition Certifi-
cation in Contracting (or any successor certification) or 
the equivalent Department of Defense certification, except 
that a Business Opportunity Specialist serving at the time 
of the date of enactment of the Small Business Oppor-
tunity Act of 2012 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.’’. 
(d) GAO REPORT.—Not later than 365 days after 
the date of enactment of this part, the Comptroller Gen-
eral of the United States shall conduct a study and submit 
a report to the Committee on Small Business of the House 
of Representatives and the Committee on Small Business 
and Entrepreneurship of the Senate on the relationship 
between the size and quality of the acquisition workforce 
and the Federal government’s ability to maximize the utili-
zation of small businesses in Federal procurement. The 
report shall specifically address the following: 
(1) The extent to which training on small busi-
ness contracting laws affects a contracting officer’s 
determination to use one of the contracting authori-
ties provided in the Small Business Act. 
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(2) The relationship between a robust Federal 
acquisition workforce and small business success in 
obtaining Federal contracting opportunities. 
(3) The effect on economic growth if small busi-
nesses experienced a significant reduction in small 
business procurement activities. 
(4) The effect of the anticipated acceleration of 
retirements by the acquisition workforce on small 
business procurement opportunities. 
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 in-
serting ‘‘a Federal department or agency’’; and 
(2) by striking the period and inserting ‘‘and 
each such Federal department or agency shall— 
‘‘(A) enumerate opportunities for the par-
ticipation of small business concerns during all 
acquisition planning processes and in all acqui-
sition plans; 
‘‘(B) invite the participation of the appro-
priate Director of Small and Disadvantaged 
Business Utilization in all acquisition planning 
processes and provide that Director access to all 
acquisition plans in development; and 
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