853 
(C) in subsection (d), by striking the sub-
section heading and inserting the following new 
subsection heading: ‘‘DELEGATION OF DETER-
MINATION AUTHORITY.—’’; and 
(D) in subsection (e), by striking the sub-
section heading and inserting the following new 
subsection heading: ‘‘TRANSPARENCY
OF DE-
TERMINATIONS.—’’. 
(d) CLERICAL AMENDMENTS.—The table of sections 
at the beginning of chapter 3 of such title is amended— 
(1) by striking the item relating to section 128 
and inserting the following new item: 
‘‘128. Control and physical protection of special nuclear material: limitation on 
dissemination of unclassified information.’’; and 
(2) by striking the item relating to section 130e 
and inserting the following new item: 
‘‘130e. Control and protection of critical infrastructure security information.’’. 
SEC. 
1643. 
PROCUREMENT 
AUTHORITY 
FOR 
CERTAIN 
PARTS OF INTERCONTINENTAL BALLISTIC 
MISSILE FUZES. 
(a) AVAILABILITY OF FUNDS.—Notwithstanding sec-
tion 1502(a) of title 31, United States Code, of the 
amount authorized to be appropriated for fiscal year 2017 
by section 101 and available for Missile Procurement, Air 
Force, as specified in the funding table in section 4101, 
$17,095,000 shall be available for the procurement of cov-
854 
ered parts pursuant to contracts entered into under sec-
tion 1645(a) of the Carl Levin and Howard P. ‘‘Buck’’ 
Mckeon National Defense Authorization Act for Fiscal 
Year 2015 (Public Law 113–291; 128 Stat. 3651). 
(b) COVERED PARTS DEFINED.—In this section, the 
term ‘‘covered parts’’ means commercially available off- 
the-shelf items as defined in section 104 of title 41, United 
States Code. 
SEC. 1644. PROHIBITION ON AVAILABILITY OF FUNDS FOR 
MOBILE VARIANT OF GROUND-BASED STRA-
TEGIC DETERRENT MISSILE. 
None of the funds authorized to be appropriated by 
this Act or otherwise made available for any of fiscal years 
2017 or 2018 may be obligated or expended to retain the 
option for, or develop, a mobile variant of the ground- 
based strategic deterrent missile. 
SEC. 1645. LIMITATION ON AVAILABILITY OF FUNDS FOR 
EXTENSION OF NEW START TREATY. 
(a) LIMITATION.—None of the funds authorized to 
be appropriated by this Act or otherwise made available 
for fiscal year 2017 or any other fiscal year for the De-
partment of Defense may be obligated or expended to ex-
tend the New START Treaty unless— 
(1) the Chairman of the Joint Chiefs of Staff 
submits the report under subsection (b);
855 
(2) the Director of National Intelligence sub-
mits the National Intelligence Estimate under sub-
section (c)(2); and 
(3) a period of 180 days elapses following the 
submission of both the report and the National In-
telligence Estimate. 
(b) REPORT.—The Chairman of the Joint Chiefs of 
Staff shall submit to the appropriate congressional com-
mittees a report detailing the following: 
(1) The impacts on the nuclear forces and force 
planning of the United States with respect to a 
State Party to the New START Treaty developing 
a capability to conduct a rapid reload of its ballistic 
missiles. 
(2) Whether any State Party to the New 
START Treaty has significantly increased its upload 
capability with non-deployed nuclear warheads and 
the degree to which such developments impact crisis 
stability and the nuclear forces, force planning, use 
concepts, and deterrent strategy of the United 
States. 
(3) The extent to which non-treaty-limited nu-
clear or strategic conventional systems pose a threat 
to the United States or the allies of the United 
States.
856 
(4) The extent to which violations of arms con-
trol treaty and agreement obligations pose a risk to 
the national security of the United States and the 
allies of the United States, including the perpetua-
tion of violations ongoing as of the date of the enact-
ment of this Act, as well as potential further viola-
tions. 
(5) The extent to which— 
(A) the ‘‘escalate-to-deescalate’’ nuclear 
use doctrine of the Russian Federation is de-
terred under the current nuclear force struc-
ture, weapons capabilities, and declaratory pol-
icy of the United States; and 
(B) deterring the implementation of such a 
doctrine has been integrated into the warplans 
of the United States. 
(6) The status of the nuclear weapons, nuclear 
weapons infrastructure, and nuclear command and 
control modernization activities of the United States, 
and the impact such status has on plans to— 
(A) implement the reduction of the nuclear 
weapons of the United States; or 
(B) further reduce the numbers and types 
of such weapons.
857 
(7) Whether, and if so, the reasons that, the 
New START Treaty, and the extension of the treaty 
as of the date of the report, is in the national secu-
rity interests of the United States. 
(c) NATIONAL INTELLIGENCE ESTIMATE.— 
(1) PRODUCTION.—The Director of National 
Intelligence shall produce a National Intelligence Es-
timate on the following: 
(A) The nuclear forces and doctrine of the 
Russian Federation. 
(B) The nuclear weapons research and 
production capability of Russia. 
(C) The compliance of Russia with respect 
to arms control obligations (including treaties, 
agreements, and other obligations). 
(D) The doctrine of Russia with respect to 
targeting adversary critical infrastructure and 
the relationship between such doctrine and 
other Russian war planning, including, at a 
minimum, ‘‘escalate-to-deescalate’’ concepts. 
(2) SUBMISSION.—The Director of National In-
telligence shall submit. consistent with the protection 
of sources and methods, to the appropriate congres-
sional committees the National Intelligence Estimate 
produced under paragraph (1).
858 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committees on Armed Services of 
the House of Representatives and the Senate; 
(B) the Committee on Foreign Affairs of 
the House of Representatives and the Com-
mittee on Foreign Relations of the Senate; and 
(C) the Permanent Select Committee on 
Intelligence of the House of Representatives 
and the Select Committee on Intelligence of the 
Senate. 
(2) The term ‘‘New START Treaty’’ means the 
Treaty between the United States of America and 
the Russian Federation on Measures for the Further 
Reduction and Limitation of Strategic Offensive 
Arms, signed on April 8, 2010, and entered into 
force on February 5, 2011. 
SEC. 1646. CONSOLIDATION OF NUCLEAR COMMAND, CON-
TROL, AND COMMUNICATIONS FUNCTIONS 
OF THE AIR FORCE. 
(a) ROLE OF MAJOR COMMAND.— 
(1) CONSOLIDATION.—Not later than March 
31, 2017, the Secretary of the Air Force shall con-
solidate under a major command commanded by a
859 
single general officer the responsibility, authority, 
accountability, and resources for carrying out the 
nuclear command, control, and communications 
functions of the Air Force, including, at a minimum, 
with respect to the following: 
(A) All terrestrial and aerial components of 
the nuclear command and control system that 
are survivable and endurable. 
(B) All terrestrial and aerial components 
of the integrated tactical warning and attack 
assessment system that are survivable and en-
durable. 
(2) OVERSIGHT AND BUDGET APPROVAL.—Not 
later than March 31, 2017, in addition to the re-
sponsibility, authority, accountability, and resources 
for carrying out the nuclear command, control, and 
communications functions of the Air Force provided 
to a commander of a major command under para-
graph (1), the Secretary shall provide to the com-
mander the responsibility, authority, accountability, 
and resources to— 
(A) conduct oversight over all components 
of the nuclear command and control system and 
the integrated tactical warning and attack as-
860 
sessment system, regardless of the location or 
the endurability of such components; and 
(B) approve or disapprove of any budg-
etary actions related to all components of the 
nuclear command and control system and the 
integrated tactical warning and attack assess-
ment system, regardless of the location or the 
endurability of such components. 
(b) REPORT.—Not later than January 15, 2017, the 
Secretary shall submit to the congressional defense com-
mittees a report on the plans and actions taken by the 
Secretary to carry out subsection (a), including any guid-
ance, directives, and orders that have been or will be 
issued by the Secretary, the Chief of Staff of the Air 
Force, or other elements of the Air Force to carry out 
subsection (a). 
SEC. 1647. REPORT ON RUSSIAN AND CHINESE POLITICAL 
AND MILITARY LEADERSHIP SURVIVABILITY, 
COMMAND AND CONTROL, AND CONTINUITY 
OF GOVERNMENT PROGRAMS AND ACTIVI-
TIES. 
(a) REPORT.—Not later than January 15, 2017, the 
Director of National Intelligence shall submit to the ap-
propriate congressional committees, consistent with the 
protection of sources and methods, a report on the leader-
861 
ship survivability, command and control, and continuity 
of government programs and activities with respect to the 
People’s Republic of China and the Russian Federation, 
respectively. The report shall include the following: 
(1) The goals and objectives of such programs 
and activities of each respective country. 
(2) An assessment of how such programs and 
activities fit into the political and military doctrine 
and strategy of each respective country. 
(3) An assessment of the size and scope of such 
activities, including the location and description of 
above-ground and underground facilities important 
to the political and military leadership survivability, 
command and control, and continuity of government 
programs and activities of each respective country. 
(4) An identification of which facilities various 
senior political and military leaders of each respec-
tive country are expected to operate out of during 
crisis and wartime. 
(5) A technical assessment of the political and 
military means and methods for command and con-
trol in wartime of each respective country. 
(6) An identification of key officials and organi-
zations of each respective country involved in man-
aging and operating such facilities, programs and
862 
activities, including the command structure for each 
organization involved in such programs and activi-
ties. 
(7) An assessment of how senior leaders of each 
respective country measure the effectiveness of such 
programs and activities. 
(8) An estimate of the annual cost of such pro-
grams and activities. 
(9) An assessment of the degree of enhanced 
survivability such programs and activities can be ex-
pected to provide in various military scenarios rang-
ing from limited conventional conflict to strategic 
nuclear employment. 
(10) An assessment of the type and extent of 
foreign assistance, if any, in such programs and ac-
tivities. 
(11) An assessment of the status and the effec-
tiveness of the intelligence collection of the United 
States on such programs and capabilities, and any 
gaps in such collection. 
(12) Any other matters the Director determines 
appropriate. 
(b) COUNCIL ASSESSMENT.—Not later than 90 days 
after the date on which the Director submits the report 
under subsection (a), the Council on Oversight of the Na-
863 
tional Leadership Command, Control, and Communica-
tions System established by section 171a of title 10, 
United States Code, shall submit to the appropriate con-
gressional committees an assessment of how the command, 
control, and communications systems for the national 
leadership of the People’s Republic of China and the Rus-
sian Federation, respectively, compare to such system of 
the United States. 
(c) STRATCOM.—Together with the assessment 
submitted under subsection (b), the Commander of the 
United States Strategic Command shall submit to the ap-
propriate congressional committees the views of the Com-
mander on the report under subsection (a), including a 
detailed description for how the leadership survivability, 
command and control, and continuity of government pro-
grams and activities of the People’s Republic of China and 
the Russian Federation, respectively, are considered in the 
plans and options under the responsibility of the Com-
mander under the unified command plan. 
(d) FORMS.—Each report or assessment submitted 
under this section may be submitted in unclassified form, 
but may include a classified annex. 
(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means—
864 
(1) the congressional defense committees; and 
(2) the Permanent Select Committee on Intel-
ligence of the House of Representatives and the Se-
lect Committee on Intelligence of the Senate. 
SEC. 1648. SENSE OF CONGRESS ON IMPORTANCE OF INDE-
PENDENT NUCLEAR DETERRENT OF UNITED 
KINGDOM. 
It is the sense of Congress that— 
(1) the United States believes that the inde-
pendent nuclear deterrent and decision-making of 
the United Kingdom provides a crucial contribution 
to international stability, the North Atlantic Treaty 
Organization alliance, and the national security of 
the United States; 
(2) nuclear deterrence is and will continue to be 
the highest priority mission of the Department of 
Defense and the United States benefits when the 
closest ally of the United States clearly and un-
equivocally sets similar priorities; 
(3) the United States sees the nuclear deterrent 
of the United Kingdom as central to trans-Atlantic 
security and to the commitment of the United King-
dom to NATO to spend two percent of gross domes-
tic product on defense;
865 
(4) the commitment of the United Kingdom to 
maintain a continuous at-sea deterrence posture 
today and in the future complements the deterrent 
capabilities of the United States and provides a 
credible ‘‘second center of decision making’’ which 
ensures potential attackers cannot discount the soli-
darity of the mutual relationship of the United 
States and the United Kingdom; 
(5) the United States Navy must execute the 
Ohio-class replacement submarine program on time 
and within budget, seeking efficiencies and cost sav-
ings wherever possible, to ensure that the program 
delivers a Common Missile Compartment, the Tri-
dent II (D5) Strategic Weapon System, and associ-
ated equipment and production capabilities, that 
support the successful development and deployment 
of the Vanguard-successor submarines of the United 
Kingdom; and 
(6) the close technical collaboration, especially 
expert mutual scientific peer review, provides valu-
able resilience and cost effectiveness to the respec-
tive deterrence programs of the United States and 
the United Kingdom.
866 
SEC. 1649. REQUESTS FOR FORCES TO MEET SECURITY RE-
QUIREMENTS FOR LAND-BASED NUCLEAR 
FORCES. 
(a) CERTIFICATION.—Not later than five days after 
the date of the enactment of this Act, the Chairman of 
the Joint Chiefs of Staff shall certify to the congressional 
defense committees that the Chairman has approved any 
requests for forces, as of the date of the enactment of this 
Act, of a commander of a combatant command to meet 
the security requirements of land-based nuclear forces. 
(b) LIMITATION.—Of the funds authorized to be ap-
propriated by this Act or otherwise made available for fis-
cal year 2017 for the travel and representational expenses 
of the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, not more than 75 percent may be 
obligated or expended until the date on which the Under 
Secretary certifies to the congressional defense committees 
that there is a competitive acquisition process in place to 
ensure that a UH–1N replacement aircraft is under con-
tract in fiscal year 2018. 
SEC. 1649A. MATTERS RELATED TO INTERCONTINENTAL 
BALLISTIC MISSILES. 
(a) POLICY.—It is the policy of the United States to 
maintain and modernize a responsive and alert interconti-
nental ballistic missile force to ensure robust nuclear de-
terrence by preventing any adversary from believing it can
867 
carry out a small, surprise, first-strike attack on the 
United States that disarms the strategic forces of the 
United States. 
(b) PROHIBITION.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), none of the funds authorized to be appro-
priated by this Act or otherwise made available for 
fiscal year 2017 shall be obligated or expended for— 
(A) reducing, or preparing to reduce, the 
responsiveness or alert level of the interconti-
nental ballistic missiles of the United States; or 
(B) reducing, or preparing to reduce, the 
quantity of deployed intercontinental ballistic 
missiles of the United States to a number less 
than 400. 
(2) EXCEPTION.—The prohibition in paragraph 
(1) shall not apply to any of the following activities: 
(A) The maintenance or sustainment of 
intercontinental ballistic missiles. 
(B) Ensuring the safety, security, or reli-
ability of intercontinental ballistic missiles. 
(C) Reduction in the number of deployed 
intercontinental ballistic missiles that are car-
ried out in compliance with—
868 
(i) the limitations of the New START 
Treaty (as defined in section 494(a)(2)(D) 
of title 10, United States Code); and 
(ii) section 1644 of the Carl Levin an 
Howard P. ‘‘Buck’’ McKeon National De-
fense Authorization Act for Fiscal Year 
2015 (Public Law 113–291; 128 Stat. 
3651; 10 U.S.C. 494 note). 
(c) REPORT.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of the enactment of this Act, the Secretary 
of the Air Force and the Chairman of the Nuclear 
Weapons Council shall submit to the congressional 
defense committees a report regarding efforts to 
carry out section 1057 of the National Defense Au-
thorization Act for Fiscal Year 2014 (Public Law 
113–66; 10 U.S.C. 495 note). 
(2) ELEMENTS.—The report under paragraph 
(1) shall include the following with respect to the pe-
riod of the expected lifespan of the Minuteman III 
system: 
(A) The number of nuclear warheads re-
quired to support the capability to redeploy 
multiple independently retargetable reentry ve-
869 
hicles across the full intercontinental ballistic 
missile fleet. 
(B) The current and planned (until 2030) 
readiness state of nuclear warheads intended to 
support the capability to redeploy multiple inde-
pendently retargetable reentry vehicles across 
the full intercontinental ballistic missile fleet, 
including which portion of the active or inactive 
stockpile such warheads are classified within. 
(C) The current and planned (until 2030) 
reserve of components or subsystems required 
to redeploy multiple independently retargetable 
reentry vehicles across the full intercontinental 
ballistic missile fleet, including the plans or in-
dustrial capability and capacity to produce more 
such components or subsystems, if needed. 
(D) The current and planned (until 2030) 
time required to commence redeployment of 
multiple independently retargetable reentry ve-
hicles across the intercontinental ballistic mis-
sile fleet, including the time required to finish 
deployment across the full fleet.
870 
Subtitle E—Missile Defense 
Programs 
SEC. 1651. EXTENSIONS OF PROHIBITIONS RELATING TO 
MISSILE DEFENSE INFORMATION AND SYS-
TEMS. 
(a) PROHIBITION ON INTEGRATION OF CERTAIN MIS-
SILE DEFENSE SYSTEMS.— 
(1) IN
GENERAL.—Section 130h of title 10, 
United States Code, is amended— 
(A) by redesignating subsection (d) as sub-
section (e); 
(B) by inserting after subsection (c) the 
following new subsection (d): 
‘‘(d) INTEGRATION.—None of the funds authorized to 
be appropriated or otherwise made available for any fiscal 
year for the Department of Defense may be obligated or 
expended to integrate a missile defense system of the Rus-
sian Federation or a missile defense system of the People’s 
Republic of China into any missile defense system of the 
United States.’’; and 
(C) by striking the section heading and in-
serting the following: ‘‘Prohibitions relat-
ing to missile defense information 
and systems’’.
871 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 3 of title 10, 
United States Code, is amended by striking the item 
relating to section 130h and inserting the following 
new item: 
‘‘130h. Prohibitions relating to missile defense information and systems.’’. 
(3) CONFORMING
REPEALS.—Sections 1672 
and 1673 of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 
1130) are repealed. 
(b) EXTENSION
OF SUNSET.—Section 130h(e) of 
title 10, United States Code, as redesignated by subsection 
(a)(1), is amended to read as follows: 
‘‘(e) SUNSET.—The prohibitions in subsections (a), 
(b), and (d) shall expire on January 1, 2027.’’. 
SEC. 1652. REVIEW OF THE MISSILE DEFEAT POLICY AND 
STRATEGY OF THE UNITED STATES. 
(a) NEW REVIEW.—The Secretary of Defense and 
the Chairman of the Joint Chiefs of Staff shall jointly con-
duct a new review of the missile defeat capability, policy, 
and strategy of the United States, with respect to— 
(1) left- and right-of-launch ballistic missile de-
fense for— 
(A) both regional and homeland purposes; 
and
872 
(B) the full range of active, passive, ki-
netic, and nonkinetic defense measures across 
the full spectrum of land-, air-, sea-, and space- 
based platforms; 
(2) the integration of offensive and defensive 
forces for the defeat of ballistic missiles, including 
against weapons initially deployed on ballistic mis-
siles, such as hypersonic glide vehicles; and 
(3) cruise missile defense of the homeland. 
(b) ELEMENTS.—The review under subsection (a) 
shall address the following: 
(1) The missile defeat policy, strategy, and ob-
jectives of the United States in relation to the na-
tional security strategy of the United States and the 
military strategy of the United States. 
(2) The role of deterrence in the missile defeat 
policy and strategy of the United States. 
(3) The missile defeat posture, capability, and 
force structure of the United States. 
(4) With respect to both the five- and ten-year 
periods beginning on the date of the review, the 
planned and desired end-state of the missile defeat 
programs of the United States, including regarding 
the integration and interoperability of such pro-
grams with the joint forces and the integration and
873 
interoperability of such programs with allies, and 
specific benchmarks, milestones, and key steps re-
quired to reach such end-states. 
(5) The organization, discharge, and oversight 
of acquisition for the missile defeat programs of the 
United States. 
(6) The roles and responsibilities of the Office 
of the Secretary of Defense, Defense Agencies, com-
batant commands, the Joint Chiefs of Staff, and the 
military departments in such programs and the 
process for ensuring accountability of each stake-
holder. 
(7) The process for determining requirements 
for missile defeat capabilities under such programs, 
including input from the joint military requirements 
process. 
(8) The process for determining the force struc-
ture and inventory objectives for such programs. 
(9) Standards for the military utility, oper-
ational effectiveness, suitability, and survivability of 
the missile defeat systems of the United States. 
(10) The method in which resources for the 
missile defeat mission are planned, programmed, 
and budgeted within the Department of Defense.
874 
(11) The near-term and long-term costs and 
cost effectiveness of such programs. 
(12) The options for affecting the offense-de-
fense cost curve. 
(13) Accountability, transparency, and over-
sight with respect to such programs. 
(14) The role of international cooperation on 
missile defeat in the missile defeat policy and strat-
egy of the United States and the plans, policies, and 
requirements for integration and interoperability of 
missile defeat capability with allies. 
(15) Options for enhancing and making routine 
the codevelopment of missile defeat capabilities with 
allies of the United States in the near-term and far- 
term. 
(16) Declaratory policy governing the employ-
ment of missile defeat capabilities and the military 
options and plans and employment options of such 
capabilities. 
(17) The role of multi-mission defense and 
other assets of the United States, including space 
and terrestrial sensors and plans to achieve multi- 
mission capability in current, planned, and other fu-
ture assets and acquisition programs.
875 
(18) The indications and warning required to 
meet the missile defeat strategy and objectives of the 
United States described in paragraph (1) and the 
key enablers and programs to achieve such indica-
tions and warning. 
(19) The impact of the mobility, counter-
measures, and denial and deception capabilities of 
adversaries on the indications and warning described 
in paragraph (16) and the consequences of such im-
pact for the missile defeat capability, objectives, and 
military options of the United States and the plans 
of the combatant commanders. 
(20) Any other matters the Secretary deter-
mines relevant. 
(c) REPORTS.— 
(1) RESULTS.—Not later than January 31, 
2018, the Secretary shall submit to the congres-
sional defense committees a report setting forth the 
results of the review under subsection (a). 
(2) FORM.—The report required by paragraph 
(1) shall be submitted in unclassified form, but may 
include a classified annex. 
(3) ANNUAL
IMPLEMENTATION
UPDATES.— 
During the five-year period beginning on the date of 
the submission of the report under paragraph (1),
876 
the Director of Cost Assessment and Program Eval-
uation shall submit to the Secretary of Defense, the 
Chairman of the Joint Chiefs of Staff, and the con-
gressional defense committees annual status updates 
detailing the progress of the Secretary in imple-
menting the missile defeat strategy of the United 
States. 
(4) THREAT REPORT.—Not later than 180 days 
after the date of the enactment of this Act, the Di-
rector of National Intelligence shall submit to the 
congressional defense committees, the Permanent 
Select Committee on Intelligence of the House of 
Representatives, and the Select Committee on Intel-
ligence of the Senate a report containing an unclas-
sified summary, consistent with the protection of in-
telligence sources and methods, of— 
(A) as of the date of the report, the bal-
listic and cruise missile threat to the United 
States, deployed forces of the United States, 
and friends and allies of the United States from 
short-, medium-, intermediate-, and long-range 
nuclear and non-nuclear ballistic and cruise 
missile threats; and 
(B) an assessment of such threat in 2026. 
(d) NOTIFICATION.—
877 
(1) IN GENERAL.—None of the funds author-
ized to be appropriated by this Act or otherwise 
made available for fiscal year 2017 or any fiscal year 
thereafter for the Secretary of Defense may be obli-
gated or expended to change the non-standard acqui-
sition processes and responsibilities described in 
paragraph (2) until— 
(A) the Secretary notifies the congressional 
defense committees of such proposed change; 
and 
(B) a period of 180 days has elapsed fol-
lowing the date of such notification. 
(2) NON-STANDARD
ACQUISITION
PROCESSES 
AND
RESPONSIBILITIES
DESCRIBED.—The 
non- 
standard acquisition processes and responsibilities 
described in this paragraph are such processes and 
responsibilities described in— 
(A) the memorandum of the Secretary of 
Defense titled ‘‘Missile Defense Program Direc-
tion’’ signed on January 2, 2002; and 
(B) Department of Defense Directive 
5134.09, as in effect on the date of the enact-
ment of this Act. 
(e) DESIGNATION REQUIRED.—
878 
(1) AUTHORITY.—Not later than March 31, 
2018, the Secretary of Defense shall designate a 
military department or Defense Agency with acquisi-
tion authority with respect to— 
(A) the capability to defend the homeland 
from cruise missiles; and 
(B) left-of-launch ballistic missile defeat 
capability. 
(2) VALIDATION.—In making such designation 
under paragraph (1), the Secretary shall include a 
description of the manner in which the military re-
quirements for such capabilities will be validated. 
SEC. 1653. IRON DOME SHORT-RANGE ROCKET DEFENSE 
SYSTEM AND ISRAELI COOPERATIVE MISSILE 
DEFENSE PROGRAM CODEVELOPMENT AND 
COPRODUCTION. 
(a) IRON DOME SHORT-RANGE ROCKET DEFENSE 
SYSTEM.— 
(1) AVAILABILITY
OF
FUNDS.—Of the funds 
authorized to be appropriated by section 101 for 
procurement, Defense-wide, and available for the 
Missile Defense Agency, not more than $62,000,000 
may be provided to the Government of Israel to pro-
cure Tamir interceptors for the Iron Dome short- 
range rocket defense system, as specified in the
879 
funding table in division D, through coproduction of 
such interceptors in the United States by industry of 
the United States. 
(2) CONDITIONS.— 
(A) AGREEMENT.—Funds described in 
paragraph (1) for the Iron Dome short-range 
rocket defense program shall be available sub-
ject to the terms and conditions in the Agree-
ment Between the Department of Defense of 
the United States of America and the Ministry 
of Defense of the State of Israel Concerning 
Iron Dome Defense System Procurement, 
signed on March 5, 2014, subject to an amend-
ed bilateral international agreement for co-
production for Tamir interceptors. In negotia-
tions by the Missile Defense Agency and the 
Missile Defense Organization of the Govern-
ment of Israel regarding such production, the 
goal of the United States is to maximize oppor-
tunities for coproduction of the Tamir intercep-
tors described in paragraph (1) in the United 
States by industry of the United States. 
(B) CERTIFICATION.—Not later than 30 
days prior to the initial obligation of funds de-
scribed in paragraph (1), the Director of the
880 
Missile Defense Agency and the Under Sec-
retary of Defense for Acquisition, Technology, 
and Logistics shall jointly submit to the appro-
priate congressional committees— 
(i) a certification that the bilateral 
international agreement specified in sub-
paragraph (A) is being implemented as 
provided in such bilateral international 
agreement; and 
(ii) an assessment detailing any risks 
relating to the implementation of such bi-
lateral international agreement. 
(b) COOPERATIVE MISSILE DEFENSE PROGRAM CO-
DEVELOPMENT AND COPRODUCTION.— 
(1) IN GENERAL.—Subject to paragraph (2), of 
the funds authorized to be appropriated for fiscal 
year 2017 for procurement, Defense-wide, and avail-
able for the Missile Defense Agency— 
(A) not more than $150,000,000 may be 
provided to the Government of Israel to procure 
the David’s Sling Weapon System, including for 
coproduction of parts and components in the 
United States by United States industry; and 
(B) not more than $120,000,000 may be 
provided to the Government of Israel for the
881 
Arrow 3 Upper Tier Interceptor Program, in-
cluding for coproduction of parts and compo-
nents in the United States by United States in-
dustry. 
(2) CERTIFICATION.— 
(A) CRITERIA.—Except as provided by 
paragraph (3), the Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall 
submit to the appropriate congressional com-
mittees a certification that— 
(i) the Government of Israel has dem-
onstrated the successful completion of the 
knowledge points, technical milestones, and 
production readiness reviews required by 
the research, development, and technology 
agreements for the David’s Sling Weapon 
System and the Arrow 3 Upper Tier De-
velopment Program, respectively; 
(ii) funds specified in subparagraphs 
(A) and (B) of paragraph (1) will be pro-
vided on the basis of a one-for-one cash 
match made by Israel for such respective 
systems or in another matching amount 
that otherwise meets best efforts (as mutu-
882 
ally agreed to by the United States and 
Israel); 
(iii) the United States has entered 
into a bilateral international agreement 
with Israel that establishes, with respect to 
the use of such funds— 
(I) in accordance with clause (iv), 
the terms of coproduction of parts 
and components of such respective 
systems on the basis of the greatest 
practicable coproduction of parts, 
components, and all-up rounds (if ap-
propriate) by United States industry 
and minimizes nonrecurring engineer-
ing and facilitization expenses to the 
costs needed for coproduction; 
(II) complete transparency on the 
requirement of Israel for the number 
of interceptors and batteries of such 
respective systems that will be pro-
cured, including with respect to the 
procurement plans, acquisition strat-
egy, and funding profiles of Israel; 
(III) technical milestones for co-
production of parts and components
883 
and procurement of such respective 
systems; and 
(IV) joint approval processes for 
third-party sales of such respective 
systems and the components of such 
respective systems; 
(iv) the level of coproduction described 
in clause (iii)(I) for the Arrow 3 and Da-
vid’s Sling Weapon System is not less than 
50 percent; and 
(v) such funds may not be obligated 
or expended to cover costs related to any 
delays, including delays with respect to ex-
changing technical data or specifications. 
(B) NUMBER.—In carrying out subpara-
graph (A), the Under Secretary may submit— 
(i) one certification covering both the 
David’s Sling Weapon System and the 
Arrow 3 Upper Tier Interceptor Program; 
or 
(ii) separate certifications for each 
such respective system. 
(C) TIMING.—The Under Secretary shall 
submit to the congressional defense committees 
the certification under subparagraph (A) by not
884 
later than 60 days before the funds specified in 
paragraph (1) for the respective system covered 
by the certification are provided to the Govern-
ment of Israel. 
(3) WAIVER.—The Under Secretary may waive 
the certification required by paragraph (2) if the 
Under Secretary certifies to the appropriate congres-
sional committees that the Under Secretary has re-
ceived sufficient data from the Government of Israel 
to demonstrate— 
(A) the funds specified in subparagraphs 
(A) and (B) of paragraph (1) are provided to 
Israel solely for funding the procurement of 
long-lead components in accordance with a pro-
duction plan, including a funding profile detail-
ing Israeli contributions for production, includ-
ing long-lead production, of either David’s Sling 
Weapon System or the Arrow 3 Upper Tier In-
terceptor Program; 
(B) such long-lead components have suc-
cessfully completed knowledge points, technical 
milestones, and production readiness reviews; 
and 
(C) the long-lead procurement will be con-
ducted in a manner that maximizes coproduc-
885 
tion in the United States without incurring ad-
ditional nonrecurring engineering activity or 
cost. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means the following: 
(1) The congressional defense committees. 
(2) The Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Foreign Relations of the Senate. 
SEC. 1654. MAXIMIZING AEGIS ASHORE CAPABILITY. 
(a) ANTI-AIR
WARFARE
CAPABILITY
OF
AEGIS 
ASHORE SITES.— 
(1) EVALUATION.—The Secretary of Defense 
shall conduct a complete evaluation of the optimal 
anti-air warfare capability— 
(A) for each current Aegis Ashore site by 
not later than 180 days after the date of the 
enactment of this Act; and 
(B) as part of any future deployment by 
the United States of an Aegis Ashore site after 
the date of such enactment. 
(2) ASSESSMENTS INCLUDED.—Each evaluation 
under paragraph (1) shall include an assessment of 
the potential deployment of enhanced sea sparrow
886 
missiles, standard missile block 2 missiles, standard 
missile block 6 missiles, or the SeaRAM missile sys-
tem. 
(3) CONSISTENCY
WITH
ANNEX.—The Sec-
retary shall carry out this subsection consistent with 
any classified annex accompanying this Act. 
(b) AEGIS ASHORE CAPABILITY EVALUATION.—Not 
later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff shall jointly submit to the con-
gressional defense committees an evaluation of each of the 
following: 
(1) The ballistic missile and air threat against 
the continental United States and the efficacy (in-
cluding with respect to cost, ideal and optimal de-
ployment locations, and potential deployment sched-
ule) of deploying one or more Aegis Ashore sites and 
Aegis Ashore components for the ballistic and cruise 
missile defense of the continental United States. 
(2) The ballistic missile and air threat against 
the Armed Forces on Guam and the efficacy (includ-
ing with respect to cost and schedule) of deploying 
an Aegis Ashore site on Guam. 
(c) AEGIS ASHORE SITE ON THE PACIFIC MISSILE 
RANGE FACILITY.—
887 
(1) LIMITATION.—The Secretary of Defense 
may not reduce the manning levels or test capability, 
as such levels and capability existed on January 1, 
2015, of the Aegis Ashore site at the Pacific Missile 
Range Facility in Hawaii, including by putting such 
site into a ‘‘cold’’ or ‘‘stand by’’ status. 
(2) ENVIRONMENTAL IMPACT STATEMENT.— 
(A) Not later than 60 days after the date 
on which the Director of the Missile Defense 
Agency submits to the congressional defense 
committees the report under section 1689(b)(2) 
of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92; 129 
Stat. 1144), the Director shall notify such com-
mittees on whether the preferred alternative for 
fielding a medium range ballistic missile defense 
sensor for the defense of Hawaii identified by 
such report would require an update to the en-
vironmental impact statement required for con-
structing the Aegis Ashore site at the Pacific 
Missile Range Facility. 
(B) If the Director determines that an up-
dated environmental impact statement, a new 
environmental impact statement, or another ac-
tion is required or recommended pursuant to
888 
the National Environmental Policy Act of 1969 
(42 U.S.C. et seq.), the Director shall com-
mence such action by not later than 60 days 
after the date on which the Director makes the 
notification under subparagraph (A). 
(3) EVALUATION.—Not later than 60 days after 
the date of the enactment of this Act, the Secretary 
of Defense and the Chairman of the Joint Chiefs of 
Staff shall jointly submit to the congressional de-
fense committees an evaluation of the ballistic mis-
sile and air threat against Hawaii (including with re-
spect to threats to the Armed Forces and installa-
tions located in Hawaii) and the efficacy (including 
with respect to cost and potential alternatives) of— 
(A) making the Aegis Ashore site at the 
Pacific Missile Range Facility operational; 
(B) deploying the preferred alternative for 
fielding a medium range ballistic missile defense 
sensor for the defense of Hawaii described in 
paragraph (2)(A); and 
(C) any other alternative the Secretary and 
the Chairman determine appropriate. 
(d) FORMS.—The evaluations submitted under sub-
sections (b) and (c)(3) shall each be submitted in unclassi-
fied form, but may each include a classified annex.
889 
SEC. 1655. TECHNICAL AUTHORITY FOR INTEGRATED AIR 
AND MISSILE DEFENSE ACTIVITIES AND PRO-
GRAMS. 
(a) AUTHORITY.— 
(1) IN GENERAL.—The Director of the Missile 
Defense Agency is the technical authority of the De-
partment of Defense for integrated air and missile 
defense activities and programs, including joint engi-
neering and integration efforts for such activities 
and programs, including with respect to defining and 
controlling the interfaces of such activities and pro-
grams and the allocation of technical requirements 
for such activities and programs. 
(2) DETAILEES.— 
(A) In carrying out the technical authority 
under paragraph (1), the Director may seek to 
have staff detailed to the Missile Defense Agen-
cy from the Joint Functional Component Com-
mand for Integrated Missile Defense and the 
Joint Integrated Air and Missile Defense Orga-
nization in a number the Director determines 
necessary in accordance with subparagraph (B). 
(B) In detailing staff under subparagraph 
(A) to carry out the technical authority under 
paragraph (1), the total number of staff, in-
cluding detailees, of the Missile Defense Agency
890 
who carry out such authority may not exceed 
the number that is twice the number of such 
staff carrying out such authority as of January 
1, 2016. 
(b) ASSESSMENTS AND PLANS.— 
(1) BIENNIAL
SUBMISSION.—Not later than 
January 31, 2017, and biennially thereafter through 
2021, the Director shall submit to the congressional 
defense committees an assessment of the state of in-
tegration and interoperability of the integrated air 
and missile defense capabilities of the Department of 
Defense. 
(2) ELEMENTS.—Each assessment under para-
graph (1) shall include the following: 
(A) Identification of any gaps in the inte-
gration and interoperability of the integrated 
air and missile defense capabilities of the De-
partment. 
(B) A description of the options to improve 
such capabilities and remediate such gaps. 
(C) A plan to carry out such improvements 
and remediations, including milestones and 
costs for such plan. 
(3) FORM.—Each assessment under paragraph 
(1) shall be submitted in classified form unless the
891 
Director determines that submitting such assess-
ment in unclassified form is useful and expedient. 
SEC. 1656. DEVELOPMENT AND RESEARCH OF NON-TER-
RESTRIAL MISSILE DEFENSE LAYER. 
(a) DEVELOPMENT.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of the enactment of this Act, the Director 
of the Missile Defense Agency, with the support of 
federally funded research and development centers 
with subject matter expertise, shall commence the 
planning for concept definition, design, research, de-
velopment, engineering evaluation, and test of a 
space-based ballistic missile intercept and defeat 
layer to the ballistic missile defense system that— 
(A) shall provide defense options to bal-
listic missiles and re-entry vehicles, independent 
of adversary country size and threat trajectory; 
and 
(B) may provide a boost-phase missile de-
fense capability, as well as additional defensive 
options against direct ascent anti-satellite weap-
ons, hypersonic boost glide vehicles, and maneu-
vering re-entry vehicles.
892 
(2) ACTIVITIES.—The planning activities au-
thorized under paragraph (1) shall include, at a 
minimum, the following: 
(A) The initiation of formal steps for po-
tential integration into the ballistic missile de-
fense system architecture. 
(B) Mature planning for early proof of 
concept component demonstrations. 
(C) Draft operation concepts in the context 
of a multi-layer architecture. 
(D) Identification of proof of concept ven-
dor sources for demo components and sub-
assemblies. 
(E) The development of multi-year tech-
nology and risk reduction investment plan. 
(F) The commencement of the develop-
ment of a proof of concept master program 
phasing schedule. 
(G) Identification of proof of concept long 
lead items. 
(H) Initiation of requests for proposals 
from industry with significant commercial, civil, 
and national security space experience, includ-
ing for space launch services.
893 
(I) Mature options for an aggressive but 
low-risk acquisition strategy. 
(b) SPACE TEST BED.—Not later than 60 days after 
the date of the enactment of this Act, the Director shall 
commence planning for research, development, test, and 
evaluation activities with respect to a space test bed for 
a missile interceptor capability. 
(c) BUDGET SUBMISSIONS.—The Director shall sub-
mit with the budget of the President submitted to Con-
gress under section 1105(a) of title 31, United States 
Code, for fiscal year 2018 a detailed budget and develop-
ment plan, irrespective of planned budgetary total obliga-
tion authority, for the activities described in subsections 
(a) and (b), assuming initial demonstration, on-orbit, of 
such the capabilities described in such subsections by 
2025. 
SEC. 1657. HYPERSONIC BOOST GLIDE VEHICLE DEFENSE. 
(a) ESTABLISHMENT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Di-
rector of the Missile Defense Agency shall establish 
a program of record in the ballistic missile defense 
system to develop and field a defensive system to de-
feat hypersonic boost-glide and maneuvering ballistic 
missiles. Such defense system may be a new system,
894 
a modification of an existing system, or developed by 
integrating existing systems. 
(2) CODEVELOPMENT.— In developing the pro-
gram of record for the defensive system under para-
graph (1), the Director shall consider opportunities 
for codevelopment, including through financial sup-
port, with allies and partners of the United States. 
(b) LIMITATION.—Of the funds authorized to be ap-
propriated by this Act or otherwise made available for fis-
cal year 2017 for the headquarters operations of the 
Under Secretary of Defense for Policy and the head-
quarters operations of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, $25,000,000 may 
not be obligated or expended for each such headquarters 
operations until— 
(1) the Director certifies to the congressional 
defense committees that the Director has established 
the program of record under paragraph (1) of sub-
section (a), including a discussion of— 
(A) the options for codevelopment consid-
ered by the Director under paragraph (2) of 
such subsection; 
(B) such options the Director has assessed; 
and
895 
(C) such options the Director recommends 
be pursued in the program of record; and 
(2) the Chairman of the Joint Chiefs of Staff 
submits to the congressional defense committees a 
report on the military capability or capabilities and 
capability gaps relating to the threat posed by 
hypersonic boost-glide and maneuvering ballistic 
missiles to the United States, the forces of the 
United States, and the allies of the United States; 
and 
(3) a period of 30 days has elapsed following 
the date on which the congressional defense commit-
tees has received both the certification and the re-
port. 
(c) REPORT ON MTCR.—Not later than 120 days 
after the date of the enactment of this Act, the Secretary 
of Defense, with the concurrence of the Secretary of State, 
shall submit to the congressional defense committees and 
the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of Rep-
resentatives a report on the implications for the Missile 
Technology Control Regime regarding the development of 
a defensive system, including with respect to partnering 
with allies and partners of the United States, to counter 
hypersonic boost-glide and maneuvering ballistic missiles.
896 
(d) PLAN.—Not later than 30 days after the date on 
which the budget of the President for fiscal year 2018 is 
submitted to Congress under section 1105 of title 31, 
Unites States Code, the Director shall submit to the con-
gressional defense committees a plan to field the defensive 
system under paragraph (1) of subsection (a) by 2021, 
including— 
(1) a schedule of required ground, flight, and 
intercept tests; and 
(2) the estimated budget for such plan, includ-
ing a budget with codevelopment described in para-
graph (2) of such subsection and a budget without 
such codevelopment, required for each year begin-
ning with fiscal year 2018. 
SEC. 1658. LIMITATION ON AVAILABILITY OF FUNDS FOR 
PATRIOT LOWER TIER AIR AND MISSILE DE-
FENSE CAPABILITY OF THE ARMY. 
Of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2017 for 
the Patriot lower tier air and missile defense capability 
of the Army, not more than 50 percent may be obligated 
or expended until each of the following occurs: 
(1) The Director of the Missile Defense Agency 
certifies to the congressional defense committees 
that such capability, upon the completion of the
897 
modernization process addressed by the analysis of 
alternatives regarding such capability, will be fully 
interoperable with the ballistic missile defense sys-
tem and other air and missile defense capabilities 
deployed and planned to be deployed by the United 
States. 
(2) The Chairman of the Joint Chiefs of Staff 
certifies to the congressional defense committees 
that such capability, upon the completion of the 
modernization process addressed by the analysis of 
alternatives regarding such capability, will meet— 
(A) the desired attributes for modularity 
sought by the geographic combatant commands; 
and 
(B) the validated and objective warfighter 
requirements for air and missile defense capa-
bility. 
(3) The Chief of Staff of the Army, in coordina-
tion with the Secretary of the Army, submits to the 
congressional defense committees— 
(A) a determination as to whether the re-
quirements of the lower tier air and missile de-
fense program are appropriate for acquisition 
through the Army Rapid Capabilities Office, 
and if the determination is that such require-
898 
ments are not so appropriate, an evaluation of 
why; 
(B) the terms of the competition planned 
for the lower tier air and missile defense pro-
gram to ensure fair competition for all competi-
tors; and 
(C) either— 
(i) certification that— 
(I) the requirements of the lower 
tier air and missile defense program 
can only be met through a multi-year 
development and acquisition program, 
rather than through more expedient 
modification of existing or dem-
onstrated capabilities of the Depart-
ment of Defense; and 
(II) the lower tier air and missile 
defense acquisition program as de-
signed as of the date of the certifi-
cation will provide the most rapid de-
ployment of a modernized capability 
to the warfighter at reasonable risk 
levels (as compared to systems with 
similar amounts of complexity and 
technological readiness); or
899 
(ii) a revised acquisition strategy for 
the lower tier air and missile defense ac-
quisition program, including a schedule to 
carry out such strategy. 
(4) If the Chief of Staff of the Army submits 
the revised acquisition strategy under paragraph 
(3)(C)(ii), a period of 30 days has elapsed following 
the date of such submission. 
SEC. 1659. LIMITATION ON AVAILABILITY OF FUNDS FOR 
CONVENTIONAL PROMPT GLOBAL STRIKE 
WEAPONS SYSTEM. 
Of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2017 for 
research, development, test, and evaluation, Defense-wide, 
for the conventional prompt global strike weapons system, 
not more than 75 percent may be obligated or expended 
until the date on which the Chairman of the Joint Chiefs 
of Staff, in consultation with the Commander of the 
United States European Command, the Commander of the 
United States Pacific Command, and the Commander of 
the United States Strategic Command, submits to the con-
gressional defense committees a report on— 
(1) whether there are warfighter requirements 
or integrated priorities list submitted needs for a
900 
limited operational conventional prompt strike capa-
bility; and 
(2) whether the program plan and schedule pro-
posed by the program office in the Office of the 
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics supports such requirements 
and integrated priorities lists submissions. 
SEC. 1660. PILOT PROGRAM ON LOSS OF UNCLASSIFIED, 
CONTROLLED TECHNICAL INFORMATION. 
(a) PILOT PROGRAM.—Beginning not later than 90 
days after the date of the enactment of this Act, the Direc-
tor of the Missile Defense Agency shall carry out a pilot 
program to implement improvements to the data protec-
tion options in the programs of the Missile Defense Agen-
cy (including the contractors of the Agency), particularly 
with respect to unclassified, controlled technical informa-
tion and controlled unclassified information. 
(b) PRIORITY.—In carrying out the pilot program 
under subsection (a), the Director shall give priority to 
implementing data protection options that are used by the 
private sector and have been proven successful. 
(c) DURATION.—The Director shall carry out the 
pilot program under subsection (a) for not more than a 
5-year period.
901 
(d) NOTIFICATION.—Not later than 30 days before 
the date on which the Director commences the pilot pro-
gram under subsection (a), the Director shall notify the 
congressional defense committees, the Committee on Over-
sight and Government Reform of the House of Represent-
atives, and the Committee on Homeland Security and Gov-
ernment Affairs of the Senate of— 
(1) the data protection options that the Direc-
tor is considering to implement under the pilot pro-
gram and the potential costs of such options; and 
(2) such option that is the preferred option of 
the Director. 
(e) DATA PROTECTION OPTIONS.—In this section, 
the term ‘‘data protection options’’ means actions to im-
prove processes, practices, and systems that relate to the 
safeguarding, hygiene, and data protection of information. 
SEC. 1661. REVIEW OF MISSILE DEFENSE AGENCY BUDGET 
SUBMISSIONS 
FOR 
GROUND-BASED 
MID-
COURSE DEFENSE AND EVALUATION OF AL-
TERNATIVE GROUND-BASED INTERCEPTOR 
DEPLOYMENTS. 
(a) BUDGET SUFFICIENCY.— 
(1) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Director 
of Cost Assessment and Program Evaluation shall
902 
submit to the congressional defense committees a re-
port on the ground-based midcourse defense system. 
(2) ELEMENTS.—The report under paragraph 
(1) shall include an evaluation of each of the fol-
lowing: 
(A) The modernization requirements for 
the ground-based midcourse system, including 
all command and control, ground systems, sen-
sors and sensor interfaces, boosters and kill ve-
hicles, and integration of known future systems 
and components. 
(B) The obsolescence of such systems and 
components. 
(C) The industrial base requirements relat-
ing to the ground-based midcourse system. 
(D) The extent to which the estimated lev-
els of annual funding included in the most re-
cent budget and the future-years defense pro-
gram submitted under section 221 of this title 
fully fund the requirements under clause (i). 
(3) UPDATES.—Not later than 30 days after 
the date on which each budget is submitted through 
January 31, 2021, the Director shall submit to the 
congressional defense committees an update to the 
report under paragraph (1).
903 
(4) CERTIFICATION.—Not later than 60 days 
after the date on which each budget is submitted 
through January 31, 2021, the Commander of the 
United States Northern Command shall certify to 
the congressional defense committees that the most 
recent defense budget materials include a sufficient 
level of funding for the ground-based midcourse de-
fense system to modernize the system to remain 
paced ahead of the developing limited ballistic mis-
sile threat to the homeland, including from an acci-
dental or unauthorized ballistic missile attack. 
(b) EVALUATION
OF
TRANSPORTABLE
GROUND- 
BASED INTERCEPTOR.—Not later than 180 days after the 
date of the enactment of this Act, the Director of the Mis-
sile Defense Agency shall submit to the congressional de-
fense committees a report on transportable ground-based 
interceptors. Such report shall detail the views of the Di-
rector regarding— 
(1) the cost that is unconstrained by current 
projected budget levels for the Missile Defense Agen-
cy (including a detailed program development pro-
duction and deployment cost and schedule for the 
earliest technically possible deployment), the associ-
ated manning, and the comparative cost (including 
as compared to developing a fixed ground-based in-
904 
terceptor site), technical readiness, and feasibility of 
a transportable ground-based interceptor as a means 
to deploy additional ground-based interceptors for 
the defense of the United States and the operational 
value of a transportable ground-based interceptor for 
the defense of the homeland against a limited bal-
listic missile attack, including from accidental or un-
authorized ballistic missile launch; 
(2) the type and number of flight and or inter-
cept tests that would be required to validate the ca-
pability and compatibility of a transportable ground- 
based interceptor in the ballistic missile defense sys-
tem; 
(3) the enabling capabilities, and the cost of 
such capabilities, to support such a system; 
(4) any safety consideration of a transportable 
ground-based interceptor; and 
(5) other matters that the Director determines 
pertinent to such a system. 
(c) FORM.—The report submitted under subsection 
(b) shall be submitted in unclassified form, but may in-
clude a classified annex. 
(d) DEFINITIONS.—In this section, the terms ‘‘budg-
et’’ and ‘‘defense budget materials’’ have the meanings
905 
given those terms in section 231 of title 10, United States 
Code. 
SEC. 1662. DECLARATORY POLICY, CONCEPT OF OPER-
ATIONS, AND EMPLOYMENT GUIDELINES FOR 
LEFT-OF-LAUNCH CAPABILITY. 
Not later than 120 days after the date of the enact-
ment of this Act, the Secretary of Defense and the Chair-
man of the Joint Chiefs of Staff shall jointly submit to 
the congressional defense committees the following: 
(1) Both the classified and unclassified declara-
tory policy of the United States regarding the use of 
the left-of-launch capability of the United States 
against potential targets and how the Secretary and 
the Chairman intend to ensure that such capability 
is a deterrent to attacks by adversaries. 
(2) Both the classified and unclassified concept 
of operations for the use of such capability across 
and between the combatant commands. 
(3) Both the classified and unclassified employ-
ment strategy, plans, and options for such capa-
bility.
906 
SEC. 1663. PROCUREMENT OF MEDIUM-RANGE DISCRIMI-
NATION RADAR TO IMPROVE HOMELAND MIS-
SILE DEFENSE. 
(a) The Director of the Missile Defense Agency shall 
issue a request for proposals for such radar by not later 
than October 1, 2017. 
(b) The Director shall plan to procure a medium- 
range discrimination radar or equivalent sensor for a loca-
tion the Director determines will improve homeland mis-
sile defense for the defense of Hawaii from the limited 
ballistic missile threat (including accidental or unauthor-
ized launch) and plan for such radar to be fielded by not 
later than December 31, 2021. 
SEC. 1664. SEMIANNUAL NOTIFICATIONS ON MISSILE DE-
FENSE TESTS AND COSTS. 
(a) NOTIFICATIONS.—Not less than once every 180- 
day period beginning 90 days after the date of the enact-
ment of this Act and ending on January 31, 2021, the 
Director of the Missile Defense Agency shall submit to the 
congressional defense committees a notification on— 
(1) the outcome of each planned flight test, in-
cluding intercept tests, occurring during the period 
covered by the notification; and 
(2) flight tests, including intercept tests, 
planned to occur after the date of the notification.
907 
(b) ELEMENTS.—Each notification shall include the 
following: 
(1) With respect to each test described in sub-
section (a)(1)— 
(A) the cost; 
(B) any changes made to the scope or ob-
jectives of the test, or future tests, and an ex-
planation for such changes; 
(C) in the event of a failure of the test or 
a decision to delay or cancel the test— 
(i) the reasons such test did not suc-
ceed or occur; 
(ii) the funds expended on such at-
tempted test; and 
(iii) in the case of a test failure or 
cancelled test that is the result of con-
tractor performance, the contractor liabil-
ity, if appropriate, as compared to the cost 
of such test and potential retest; and 
(D) the plan to conduct a retest, if nec-
essary, and an estimate of the cost of such 
retest. 
(2) With respect to each test described in sub-
section (a)(2)—
908 
(A) any changes made to the scope of the 
test; 
(B) whether the test was to occur earlier 
but was delayed; and 
(C) an explanation for any such changes or 
delays. 
(3) The status of any open failure review 
boards or any failure review boards completed dur-
ing the period covered by the notification. 
(c) FORM.—Each notification submitted under sub-
section (a) shall be submitted in unclassified form, but 
may include a classified annex. 
SEC. 1665. NATIONAL MISSILE DEFENSE POLICY. 
(a) POLICY.—It is the policy of the United States to 
maintain and improve a robust layered missile defense sys-
tem capable of defending the territory of the United 
States, allies, deployed forces, and capabilities against the 
developing and increasingly complex ballistic missile threat 
with funding subject to the annual authorization of appro-
priations and the annual appropriation of funds for Na-
tional Missile Defense. 
(b) CONFORMING REPEAL.—Section 2 of the Na-
tional Missile Defense Act of 1999 (Public Law 106–38; 
10 U.S.C. 2431 note) is repealed.
909 
SEC. 1666. SENSE OF CONGRESS ON INITIAL OPERATING 
CAPABILITY OF PHASE 2 OF EUROPEAN 
PHASED ADAPTIVE APPROACH TO MISSILE 
DEFENSE. 
(a) FINDINGS.—Congress finds the following: 
(1) President Obama, during his announcement 
of the European Phased Adaptive Approach on Sep-
tember 17, 2009, stated, ‘‘This approach is based on 
an assessment of the Iranian missile threat,’’ and 
‘‘the best way to responsibly advance our security 
and the security of our allies is to deploy a missile 
defense system that best responds to the threats we 
face and that utilizes technology that is both proven 
and cost-effective.’’. 
(2) The 2010 Ballistic Missile Defense review 
stated that ‘‘The [European] Phased Adaptive Ap-
proach utilizes existing and proven capabilities to 
meet current threats and then will improve upon 
these capabilities over time by integrating new tech-
nology.’’. 
(3) Secretary of Defense Leon Panetta, during 
a speech in Brussels on October 5, 2011, stated, 
‘‘The United States is fully committed to building a 
missile defense capability for the full coverage and 
protection of all our NATO European populations,
910 
their territory and their forces against the growing 
threat posed by ballistic missiles.’’. 
(4) Secretary of Defense Chuck Hagel, during 
a press conference on March 15, 2013, stated, ‘‘The 
missile deployments the United States is making in 
phases one through three of the European Phased 
Adaptive Approach, including sites in Romania and 
Poland, will still be able to provide coverage of all 
European NATO territory as planned by 2018.’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the United States is committed to the de-
fense of deployed members of the Armed Forces of 
the United States and to the defense of the Euro-
pean allies of the Unites States by increasing the 
ballistic missile defense capability of the North At-
lantic Treaty Organization (in this section referred 
to as ‘‘NATO’’); 
(2) phase 2 of the European Phased Adaptive 
Approach will provide NATO with a substantial in-
crease in ballistic missile defense capability since 
NATO declared Interim Ballistic Missile Defense 
Capability at the Chicago Summit in 2012, and such 
phase consists of— 
(A) Aegis Ashore in Romania;
911 
(B) four Aegis ballistic missile defense ca-
pable ships homeported at Rota, Spain; and 
(C) a more capable SM–3 interceptor; 
(3) NATO is moving forward with the mod-
ernization of the defense capabilities of NATO that 
is responsive to 21st century threats to the territory 
and populations of member states of NATO; 
(4) the member states of NATO recognize the 
importance of this contribution, which sends a clear 
signal that NATO will not allow potential adver-
saries to threaten the use of ballistic missile strikes 
to coerce NATO or deter NATO from responding to 
aggression against the interests of NATO; and 
(5) phase 2 of the European Phased Adaptive 
Approach is ready for 24-hour-a-day, seven-day-a- 
week operation, with proven military systems and 
command and control capability, and should be so 
declared at the July 2016 NATO Summit in War-
saw, Poland. 
Subtitle F—Other Matters 
SEC. 1671. PROTECTION OF CERTAIN FACILITIES AND AS-
SETS FROM UNMANNED AIRCRAFT. 
(a) IN GENERAL.—Chapter 3 of title 10, United 
States Code, as amended by section 1255, is further 
amended by adding at the end the following new section:
912 
‘‘§ 130j. Protection of certain facilities and assets 
from unmanned aircraft 
‘‘(a) AUTHORITY.—The Secretary of Defense may 
take, and may authorize the armed forces to take, such 
actions described in subsection (b)(1) that are necessary 
to mitigate the threat of an unmanned aircraft system or 
unmanned aircraft that poses an imminent threat (as de-
fined by the Secretary of Defense, in coordination with 
the Secretary of Transportation) to the safety or security 
of a covered facility or asset. 
‘‘(b) ACTIONS DESCRIBED.—(1) The actions de-
scribed in this paragraph are the following: 
‘‘(A) Disrupt control of the unmanned aircraft 
system or unmanned aircraft. 
‘‘(B) Seize and exercise control of the un-
manned aircraft system or unmanned aircraft. 
‘‘(C) Seize or otherwise confiscate the un-
manned aircraft system or unmanned aircraft. 
‘‘(D) Use reasonable force to disable or destroy 
the unmanned aircraft system or unmanned aircraft. 
‘‘(2) The Secretary of Defense shall develop the ac-
tions described in paragraph (1) in coordination with the 
Secretary of Transportation, consistent with the protec-
tion of information regarding sensitive defense capabili-
ties.
913 
‘‘(c) FORFEITURE.—(1) Any unmanned aircraft sys-
tem or unmanned aircraft described in subsection (a) shall 
be subject to seizure and forfeiture to the United States. 
‘‘(2) The Secretary of Defense may prescribe regula-
tions to establish reasonable exceptions to paragraph (1), 
including in cases where— 
‘‘(A) the operator of the unmanned aircraft sys-
tem or unmanned aircraft obtained the control and 
possession of such system or aircraft illegally; or 
‘‘(B) the operator of the unmanned aircraft sys-
tem or unmanned aircraft is an employee of a com-
mon carrier acting in manner described in sub-
section (a) without the knowledge of the common 
carrier. 
‘‘(d) REGULATIONS.—The Secretary of Defense and 
the Secretary of Transportation shall prescribe regulations 
and issue guidance in the respective areas of each Sec-
retary to carry out this section. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered facility or asset’ means 
any facility or asset that is— 
‘‘(A) identified by the Secretary of Defense 
for purposes of this section;
914 
‘‘(B) located in the United States (includ-
ing the territories and possessions of the United 
States); and 
‘‘(C) relating to— 
‘‘(i) the nuclear deterrence mission of 
the Department of Defense, including with 
respect to nuclear command and control, 
integrated tactical warning and attack as-
sessment, and continuity of government; 
‘‘(ii) the missile defense mission of the 
Department; or 
‘‘(iii) the national security space mis-
sion of the Department. 
‘‘(2) The terms ‘unmanned aircraft’ and ‘un-
manned aircraft system’ have the meaning given 
those terms in section 331 of the FAA Moderniza-
tion and Reform Act of 2012 (Public Law 112–95; 
49 U.S.C. 40101 note).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 130i, as added by section 
1255, the following new item: 
‘‘130j. Protection of certain facilities and assets from unmanned aircraft.’’.
915 
SEC. 1672. IMPROVEMENT OF COORDINATION BY DEPART-
MENT OF DEFENSE OF ELECTROMAGNETIC 
SPECTRUM USAGE. 
Not later than December 31, 2016, the Secretary of 
Defense shall submit to the congressional defense commit-
tees a report evaluating whether establishing an intra-de-
partmental council in the Department of Defense on the 
use electromagnetic spectrum by the Department would 
improve coordination within the Department on— 
(1) the use of such spectrum; 
(2) the acquisition cycle with respect to such 
spectrum; 
(3) training by the Armed Forces, including 
with respect to electronic and cyber warfare; and 
(4) other purposes the Secretary considers use-
ful. 
SEC. 1673. HARMFUL INTERFERENCE TO DEPARTMENT OF 
DEFENSE GLOBAL POSITIONING SYSTEM. 
(a) FEDERAL COMMUNICATIONS COMMISSION CON-
DITIONS ON COMMERCIAL TERRESTRIAL OPERATIONS.— 
Part I of title III of the Communications Act of 1934 (47 
U.S.C. 301 et seq.) is amended by adding at the end the 
following:
916 
‘‘SEC. 343. CONDITIONS ON COMMERCIAL TERRESTRIAL 
OPERATIONS. 
‘‘(a) IN GENERAL.—The Commission shall not per-
mit commercial terrestrial operations in the 1525–1559 
megahertz band or the 1626.5–1660.5 megahertz band 
until the date that is 90 days after the Commission re-
solves concerns of widespread harmful interference by 
such operations in such band to covered GPS devices. 
‘‘(b) NOTICE TO CONGRESS.— 
‘‘(1) IN GENERAL.—At the conclusion of the 
proceeding on such operations in such band, the 
Commission shall submit to the congressional com-
mittees described in paragraph (2) official copies of 
the documents containing the final decision of the 
Commission regarding whether to permit such oper-
ations in such band. If the decision is to permit such 
operations in such band, such documents shall con-
tain or be accompanied by an explanation of how the 
concerns described in subsection (a) have been re-
solved. 
‘‘(2) 
CONGRESSIONAL
COMMITTEES
DE-
SCRIBED.—The congressional committees described 
in this paragraph are the following: 
‘‘(A) The Committee on Energy and Com-
merce and the Committee on Armed Services of 
the House of Representatives.
917 
‘‘(B) 
The 
Committee 
on 
Commerce, 
Science, and Transportation and the Committee 
on Armed Services of the Senate. 
‘‘(c) COVERED GPS DEVICE DEFINED.—In this sec-
tion, the term ‘covered GPS device’ means a Global Posi-
tion System device of the Department of Defense.’’. 
(b) SECRETARY OF DEFENSE REVIEW OF HARMFUL 
INTERFERENCE.— 
(1) REVIEW.—Not later than 90 days after the 
date of the enactment of this Act, and every 90 days 
thereafter until the date referred to in paragraph 
(3), the Secretary of Defense shall conduct a review 
to— 
(A) assess the ability of covered GPS de-
vices to receive signals from Global Positioning 
System satellites without widespread harmful 
interference; and 
(B) determine if commercial communica-
tions services are causing or will cause wide-
spread harmful interference with covered GPS 
devices. 
(2) NOTICE TO CONGRESS.— 
(A) NOTICE.—If the Secretary of Defense 
determines during a review under paragraph 
(1) that commercial communications services
918 
are causing or will cause widespread harmful 
interference with covered GPS devices, the Sec-
retary shall promptly submit to the congres-
sional defense committees notice of such inter-
ference. 
(B) 
CONTENTS.—The 
notice 
required 
under subparagraph (A) shall include— 
(i) a list and description of the cov-
ered GPS devices that are being or ex-
pected to be interfered with by commercial 
communications services; 
(ii) a description of the source of, and 
the entity causing or expect to cause, the 
interference with such receivers; 
(iii) a description of the manner in 
which such source or such entity is causing 
or expected to cause such interference; 
(iv) a description of the magnitude of 
harm caused or expected to be caused by 
such interference; 
(v) a description of the duration of 
and the conditions and circumstances 
under which such interference is occurring 
or expected to occur;
919 
(vi) a description of the impact of 
such interference on the national security 
interests of the United States; and 
(vii) a description of the plans of the 
Secretary to address, alleviate, or mitigate 
such interference, including the cost of 
such plans. 
(C) FORM.—The notice required under 
subparagraph (A) shall be submitted in unclas-
sified form, but may include a classified annex. 
(3) TERMINATION DATE.—The date referred to 
in this paragraph is the earlier of— 
(A) the date that is two years after the 
date of the enactment of this Act; or 
(B) the date on which the Secretary— 
(i) determines that commercial com-
munications services are not causing any 
widespread harmful interference with cov-
ered GPS devices; and 
(ii) the Secretary submits to the con-
gressional defense committees notice of the 
determination made under clause (i). 
(c) COVERED GPS DEVICE DEFINED.—In this sec-
tion, the term ‘‘covered GPS device’’ means a Global Posi-
tion System device of the Department of Defense.
920 
(d) CONFORMING REPEAL.—Section 911 of the Na-
tional Defense Authorization Act for Fiscal Year 2012 
(Public Law 112–81; 125 Stat. 1534) is repealed. 
TITLE XVII—DEPARTMENT OF 
DEFENSE ACQUISITION AGILITY 
SEC. 1701. MODULAR OPEN SYSTEM APPROACH IN DEVEL-
OPMENT OF MAJOR WEAPON SYSTEMS. 
(a) IN GENERAL.—Part IV of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 
144A the following new chapter: 
‘‘CHAPTER 144B—WEAPON SYSTEMS 
DEVELOPMENT AND RELATED MATTERS 
‘‘Subchapter  
Sec. 
‘‘I. Modular Open System Approach in Development of 
Weapon Systems ..................................................... 2446a 
‘‘II. Development, 
Prototyping, 
and 
Deployment 
of 
Weapon System Components and Tech-
nology ......................................................................... 2447a 
‘‘III. Cost, Schedule, and Performance of Major Defense 
Acquisition Programs .......................................... 2448a 
‘‘SUBCHAPTER I—MODULAR OPEN SYSTEM AP-
PROACH IN DEVELOPMENT OF WEAPON 
SYSTEMS 
‘‘Sec. 
‘‘2446a. Requirement for modular open system approach in major defense ac-
quisition programs; definitions. 
‘‘2446b. Requirement to address modular open system approach in program ca-
pabilities development and acquisition weapon system design. 
‘‘2446c. Requirements relating to availability of major system interfaces and 
support for modular open system approach. 
‘‘2446d. Requirement to include modular open system approach in Selected Ac-
quisition Reports.
921 
‘‘§ 2446a. Requirement for modular open system ap-
proach in major defense acquisition pro-
grams; definitions 
‘‘(a) MODULAR OPEN SYSTEM APPROACH REQUIRE-
MENT.—A major defense acquisition program initiated 
after January 1, 2019, shall be designed and developed, 
to the maximum extent practicable, with a modular open 
system approach to enable incremental development. 
‘‘(b) DEFINITIONS.—In this chapter: 
‘‘(1) The term ‘modular open system approach’ 
means, with respect to a major defense acquisition 
program, an integrated business and technical strat-
egy that— 
‘‘(A) employs a modular design that uses 
major system interfaces between a major sys-
tem platform and a major system component or 
between major system components; 
‘‘(B) is subjected to verification to ensure 
major system interfaces comply with, if avail-
able and suitable, widely supported and con-
sensus-based standards; 
‘‘(C) uses a system architecture that allows 
severable major system components at the ap-
propriate level to be incrementally added, re-
moved, or replaced throughout the life cycle of 
a major system platform to afford opportunities
922 
for enhanced competition and innovation while 
yielding— 
‘‘(i) significant cost savings or avoid-
ance; 
‘‘(ii) schedule reduction; 
‘‘(iii) opportunities for technical up-
grades; 
‘‘(iv) increased interoperability; or 
‘‘(v) 
other 
benefits 
during 
the 
sustainment phase of a major weapon sys-
tem; and 
‘‘(D) complies with the technical data 
rights set forth in section 2320 of this title. 
‘‘(2) The term ‘major system platform’ means 
the highest level structure of a major weapon system 
that is not physically mounted or installed onto a 
higher level structure and on which a major system 
component can be physically mounted or installed. 
‘‘(3) The term ‘major system component’— 
‘‘(A) means a high level subsystem or as-
sembly, including hardware, software, or an in-
tegrated assembly of both, that can be mounted 
or installed on a major system platform through 
well-defined major system interfaces; and
923 
‘‘(B) includes a subsystem or assembly 
that is likely to have additional capability re-
quirements, is likely to change because of evolv-
ing technology or threat, is needed for inter-
operability, facilitates incremental deployment 
of capabilities, or is expected to be replaced by 
another major system component. 
‘‘(4) The term ‘major system interface’ means 
a shared boundary between a major system platform 
and a major system component or between major 
system components, defined by various physical, log-
ical, and functional characteristics, such as elec-
trical, mechanical, fluidic, optical, radio frequency, 
data, networking, or software elements. 
‘‘(5) The term ‘program capability document’ 
means, with respect to a major defense acquisition 
program, a document that specifies capability re-
quirements for the program, such as a capability de-
velopment document or a capability production docu-
ment. 
‘‘(6) The terms ‘program cost target’ and ‘field-
ing target’ have the meanings provided in section 
2448a(a) of this title.
924 
‘‘(7) The term ‘major defense acquisition pro-
gram’ has the meaning provided in section 2430 of 
this title. 
‘‘(8) The term ‘major weapon system’ has the 
meaning provided in section 2379(f) of this title. 
‘‘§ 2446b. Requirement to address modular open sys-
tem approach in program capabilities de-
velopment and acquisition weapon sys-
tem design 
‘‘(a) PROGRAM CAPABILITY DOCUMENT.—A program 
capability document for a major defense acquisition pro-
gram shall identify and characterize— 
‘‘(1) the extent to which requirements for sys-
tem performance are likely to evolve during the life 
cycle of the system because of evolving technology, 
threat, or interoperability needs; and 
‘‘(2) for requirements that are expected to 
evolve, the minimum acceptable capability that is 
necessary for initial operating capability of the 
major defense acquisition program. 
‘‘(b) ANALYSIS OF ALTERNATIVES.—The Director of 
Cost Assessment and Performance Evaluation, in formu-
lating study guidance for analyses of alternatives for 
major defense acquisition programs and performing such 
analyses under section 139a(d)(4) of this title, shall en-
925 
sure that any such analysis for a major defense acquisition 
program includes consideration of evolutionary acquisi-
tion, prototyping, and a modular open system approach. 
‘‘(c) ACQUISITION STRATEGY.—In the case of a 
major defense acquisition program that uses a modular 
open system approach, the acquisition strategy required 
under section 2431a of this title shall— 
‘‘(1) clearly describe the modular open system 
approach to be used for the program; 
‘‘(2) differentiate between the major system 
platform and major system components being devel-
oped under the program, as well as major system 
components developed outside the program that will 
be integrated into the major defense acquisition pro-
gram; 
‘‘(3) clearly describe the evolution of major sys-
tem components that are anticipated to be added, 
removed, or replaced in subsequent increments; 
‘‘(4) identify additional major system compo-
nents that may be added later in the life cycle of the 
major system platform; and 
‘‘(5) clearly describe how intellectual property 
and 
related 
issues, 
such 
as 
technical 
data 
deliverables, that are necessary to support a modular 
open system approach, will be addressed.
926 
‘‘(d) REQUEST FOR PROPOSALS.—The milestone de-
cision authority for a major defense acquisition program 
that uses a modular open system approach shall ensure 
that a request for proposals for the development or pro-
duction phases of the program shall describe the modular 
open system approach and the minimum set of major sys-
tem components that must be included in the design of 
the major defense acquisition program. 
‘‘(e) MILESTONE B.—A major defense acquisition 
program may not receive Milestone B approval under sec-
tion 2366b of this title until the milestone decision author-
ity determines in writing that— 
‘‘(1) in the case of a program that uses a mod-
ular open system approach— 
‘‘(A) the program incorporates clearly de-
fined major system interfaces between the 
major system platform and major system com-
ponents and between major system components; 
‘‘(B) such major system interfaces are con-
sistent with the widely supported and con-
sensus-based standards that exist at the time of 
the milestone decision, unless such standards 
are unavailable or unsuitable for particular 
major system interfaces; and
927 
‘‘(C) the Government has arranged to ob-
tain appropriate and necessary intellectual 
property rights with respect to such major sys-
tem interfaces upon completion of the develop-
ment of the major system platform; or 
‘‘(2) in the case of a program that does not use 
a modular open system approach, that the use of a 
modular open system approach is not practicable. 
‘‘§ 2446c. Requirements relating to availability of 
major system interfaces and support for 
modular open system approach 
‘‘The Secretary of each military department shall— 
‘‘(1) coordinate with the other military depart-
ments, the defense agencies, defense and other pri-
vate sector entities, national standards-setting orga-
nizations, and, when appropriate, with elements of 
the intelligence community with respect to the speci-
fication, identification, development, and mainte-
nance of major system interfaces and standards for 
use in major system platforms, where practicable; 
‘‘(2) ensure that major system interfaces incor-
porate commercial standards and other widely sup-
ported consensus-based standards that are validated, 
published, and maintained by recognized standards 
organizations to the maximum extent practicable;
928 
‘‘(3) ensure that sufficient systems engineering 
and development expertise and resources are avail-
able to support the use of a modular open system 
approach in requirements development and acquisi-
tion program planning; 
‘‘(4) ensure that necessary planning, program-
ming, and budgeting resources are provided to speci-
fy, identify, develop, and sustain the modular open 
system approach, associated major system inter-
faces, and any additional program activities nec-
essary to sustain innovation and interoperability; 
and 
‘‘(5) ensure that adequate training in the use of 
a modular open system approach is provided to 
members of the requirements and acquisition work-
force. 
‘‘§ 2446d. Requirement to include modular open sys-
tem approach in Selected Acquisition Re-
ports 
‘‘For each major defense acquisition program that re-
ceives Milestone B approval after January 1, 2019, a brief 
summary description of the key elements of the modular 
open system approach or, if a modular open system ap-
proach was not used, the rationale for not using such an 
approach, shall be submitted to the congressional defense
929 
committees with the first Selected Acquisition Report re-
quired under section 2432 of this title for the program.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for title 10, United States Code, is amended by adding 
after the item relating to chapter 144A the following new 
item: 
‘‘144B. Weapon Systems Development and Related Mat-
ters ..............................................................................2446a’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
2366b(a)(3) of such title is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (K); and 
(2) by inserting after subparagraph (L) the fol-
lowing new subparagraph: 
‘‘(M) the requirements of section 2446b(e) 
of this title are met; and’’. 
(d) EFFECTIVE DATE.—Subchapter I of chapter 
144B of title 10, United States Code, as added by sub-
section (a), shall take effect on October 1, 2016. 
SEC. 1702. DEVELOPMENT, PROTOTYPING, AND DEPLOY-
MENT OF WEAPON SYSTEM COMPONENTS OR 
TECHNOLOGY. 
(a) IN GENERAL.—Chapter 144B of title 10, United 
States Code, as added by section 1701, is further amended 
by adding at the end the following new subchapter:
930 
‘‘SUBCHAPTER 
II—DEVELOPMENT, 
PROTO-
TYPING, AND DEPLOYMENT OF WEAPON 
SYSTEM COMPONENTS OR TECHNOLOGY 
‘‘Sec. 
‘‘2447a. Technology development in the acquisition of major weapon systems. 
‘‘2447b. Weapon system component or technology prototype projects: display of 
budget information. 
‘‘2447c. Weapon system component or technology prototype projects: oversight. 
‘‘2447d. Requirements and limitations for weapon system component or tech-
nology prototype projects. 
‘‘2447e. Mechanisms to speed deployment of successful weapon system compo-
nent or technology prototypes. 
‘‘2447f. Definition of weapon system component. 
‘‘§ 2447a. Technology development in the acquisition 
of major weapon systems 
‘‘Technology shall be developed in a major defense 
acquisition program that is initiated after January 1, 
2019, only if the milestone decision authority for the pro-
gram determines with a high degree of confidence that 
such development will not delay the fielding target of the 
program. If the milestone decision authority does not 
make such determination for a major system component 
being developed under the program, the milestone decision 
authority shall ensure that technology related to the major 
system component shall be sufficiently matured separate 
from the major defense acquisition program using the 
prototyping authorities of this section or other authorities, 
as appropriate.
931 
‘‘§ 2447b. Weapon system component or technology 
prototype projects: display of budget in-
formation 
‘‘(a) REQUIREMENTS FOR BUDGET DISPLAY.—In the 
defense budget materials for any fiscal year after fiscal 
year 2017, the Secretary of Defense shall, with respect 
to advanced component development and prototype activi-
ties (within the research, development, test, and evaluation 
budget), set forth the amounts requested for each of the 
following: 
‘‘(1) Acquisition programs of record. 
‘‘(2) Development, prototyping, and experimen-
tation of weapon system components or other tech-
nologies separate from acquisition programs of 
record. 
‘‘(3) Other budget line items as determined by 
the Secretary of Defense. 
‘‘(b) ADDITIONAL REQUIREMENTS.—For purposes of 
subsection (a)(2), the amounts requested for development, 
prototyping, and experimentation of weapon system com-
ponents or other technologies shall be— 
‘‘(1) structured into either capability, weapon 
system component, or technology portfolios that re-
flect the priority areas for prototype projects; and 
‘‘(2) justified with general descriptions of the 
types of capability areas and technologies being
932 
funded or expected to be funded during the fiscal 
year concerned. 
‘‘(c) DEFINITIONS.—In this section, the terms ‘budg-
et’ and ‘defense budget materials’ have the meaning given 
those terms in section 234 of this title. 
‘‘§ 2447c. Weapon system component or technology 
prototype projects: oversight 
‘‘(a) ESTABLISHMENT.—The Secretary of each mili-
tary department shall establish an oversight board or iden-
tify a similar group of senior advisors for managing proto-
type projects for weapon system components and other 
technologies and subsystems, including the use of funds 
for such projects, within the military department con-
cerned. 
‘‘(b) MEMBERSHIP.—Each oversight board shall be 
comprised of senior officials with— 
‘‘(1) expertise in requirements; research, devel-
opment, test, and evaluation; acquisition; or other 
relevant areas within the military department con-
cerned; 
‘‘(2) awareness of technology development ac-
tivities and opportunities in the Department of De-
fense, industry, and other sources; and 
‘‘(3) awareness of the component capability re-
quirements of major weapon systems, including
933 
scheduling and fielding goals for such component ca-
pabilities. 
‘‘(c) FUNCTIONS.—The functions of each oversight 
board are as follows: 
‘‘(1) To issue a strategic plan every three years 
that prioritizes the capability and weapon system 
component portfolio areas for conducting prototype 
projects, based on assessments of high priority 
warfighter needs, capability gaps on existing major 
weapon systems, opportunities to incrementally inte-
grate new components into major weapon systems, 
and technologies that are expected to be sufficiently 
mature to prototype within three years. 
‘‘(2) To annually recommend funding levels for 
weapon system component or technology develop-
ment and prototype projects across capability or 
weapon system component portfolios. 
‘‘(3) To annually recommend to the service ac-
quisition executive of the military department con-
cerned specific weapon system component or tech-
nology development and prototype projects, subject 
to the requirements and limitations in section 2447d 
of this title. 
‘‘(4) To ensure projects are managed by experts 
within the Department of Defense who are knowl-
934 
edgeable in research, development, test, and evalua-
tion and who are aware of opportunities for incre-
mental deployment of component capabilities and 
other technologies to major weapon systems or di-
rectly to support warfighting capabilities. 
‘‘(5) To ensure projects are conducted in a 
manner that allows for appropriate experimentation 
and technology risk. 
‘‘(6) To ensure necessary technical, contracting, 
and financial management resources are available to 
support each project. 
‘‘(7) To submit to the congressional defense 
committees a semiannual notification that includes 
the following: 
‘‘(A) A description of each weapon system 
component or technology prototype project initi-
ated during the preceding six months, including 
an explanation of each project and its required 
funding. 
‘‘(B) A description of the results achieved 
from weapon system component prototype and 
technology projects completed and tested during 
the preceding six months.
935 
‘‘§ 2447d. Requirements and limitations for weapon 
system component or technology proto-
type projects 
‘‘(a) LIMITATION ON PROTOTYPE PROJECT DURA-
TION.—A prototype project shall be completed within 
three years of its initiation. 
‘‘(b) MERIT-BASED SELECTION PROCESS.—A proto-
type project shall be selected by the service acquisition ex-
ecutive of the military department concerned through a 
merit-based selection process that identifies the most 
promising and cost-effective prototypes that address a 
high priority warfighter need and are expected to be suc-
cessfully demonstrated in a relevant environment. 
‘‘(c) TYPE
OF TRANSACTION.—Prototype projects 
shall be funded through contracts, cooperative agree-
ments, or other transactions. 
‘‘(d) FUNDING LIMIT.—(1) Each prototype project 
may not exceed a total amount of $10,000,000 (based on 
fiscal year 2017 constant dollars), unless— 
‘‘(A) the Secretary of the military department, 
or the Secretary’s designee, approves a larger 
amount of funding for the project, not to exceed 
$50,000,000; and 
‘‘(B) the Secretary, or the Secretary’s designee, 
submits to the congressional defense committees,
936 
within 30 days after approval of such funding for 
the project, a notification that includes— 
‘‘(i) a description of the project; 
‘‘(ii) expected funding for the project; and 
‘‘(iii) a statement of the anticipated out-
come of the project. 
‘‘(2) The Secretary of Defense may adjust the 
amounts (and the base fiscal year) provided in paragraph 
(1) on the basis of Department of Defense escalation 
rates. 
‘‘§ 2447e. Mechanisms to speed deployment of suc-
cessful weapon system component or 
technology prototypes 
‘‘(a) SELECTION OF RAPID FIELDING PROJECT FOR 
PRODUCTION.—A weapon system component or tech-
nology rapid fielding project may be selected by the service 
acquisition executive of the military department concerned 
for a follow-on production contract or other transaction 
without the use of competitive procedures, notwith-
standing the requirements of section 2304 of this title, 
if— 
‘‘(1) a rapid fielding project addresses a high 
priority warfighter need;
937 
‘‘(2) competitive procedures were used for the 
selection of parties for participation in the rapid 
fielding project; 
‘‘(3) the participants in the project successfully 
completed the project provided for in the trans-
action; and 
‘‘(4) a prototype of the system to be procured 
in the rapid fielding project was demonstrated in a 
relevant environment. 
‘‘(b) SPECIAL TRANSFER AUTHORITY.—(1) The Sec-
retary of a military department may, as specified in ad-
vance by appropriations Acts, transfer funds that remain 
available for obligation in procurement appropriation ac-
counts of the military department to fund the low-rate ini-
tial production of the rapid fielding project until required 
funding for full-rate production can be submitted and ap-
proved through the regular budget process of the Depart-
ment of Defense. 
‘‘(2) The funds transferred under this subsection to 
fund the low-rate initial production of a rapid fielding 
project shall be for a period not to exceed two years, the 
amount for such period may not exceed $50,000,000, and 
the special transfer authority provided in this subsection 
may not be used more than once to fund procurement of 
a particular new or upgraded system.
938 
‘‘(3) The special transfer authority provided in this 
subsection is in addition to any other transfer authority 
available to the Department of Defense. 
‘‘(c) NOTIFICATION TO CONGRESS.—Within 30 days 
after the service acquisition executive of a military depart-
ment selects a weapon system component or technology 
rapid fielding project for a follow-on production contract 
or other transaction, the service acquisition executive shall 
notify the congressional defense committees of the selec-
tion and provide a brief description of the rapid fielding 
project. 
‘‘§ 2447f. Definition of weapon system component 
‘‘In this subchapter, the term ‘weapon system compo-
nent’ has the meaning given the term ‘major system com-
ponent’ in section 2446a of this title.’’. 
(b) EFFECTIVE DATE.—Subchapter II of chapter 
144B of title 10, United States Code, as added by sub-
section (a), shall take effect on October 1, 2016. 
SEC. 1703. COST, SCHEDULE, AND PERFORMANCE OF 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) IN GENERAL.—Chapter 144B of title 10, United 
States Code, as added by section 1701, is amended by 
adding at the end the following new subchapter:
939 
‘‘SUBCHAPTER III—COST, SCHEDULE, AND PER-
FORMANCE OF MAJOR DEFENSE ACQUISI-
TION PROGRAMS 
‘‘Sec. 
‘‘2448a. Program cost, fielding, and performance goals in planning major de-
fense acquisition programs. 
‘‘2448b. Independent technical risk assessments. 
‘‘2448c. Adherence to requirements and thresholds in major defense acquisition 
programs. 
‘‘§ 2448a. Program cost, fielding, and performance 
goals in planning major defense acquisi-
tion programs 
‘‘(a) PROGRAM COST AND FIELDING TARGETS.—(1) 
Before a major defense acquisition program receives Mile-
stone A approval or is otherwise initiated prior to Mile-
stone B, the Secretary of Defense shall ensure, by estab-
lishing the goals described in paragraph (2), that— 
‘‘(A) the program will be affordable; 
‘‘(B) program planning anticipates evolution of 
capabilities to meet changing threats, technology in-
sertion, and interoperability; and 
‘‘(C) the program will be fielded when needed. 
‘‘(2) The goals described in this paragraph are goals 
for— 
‘‘(A) the program acquisition unit cost (referred 
to in this section as the ‘program cost target’);
940 
‘‘(B) the date for initial operational capability 
(referred to in this section as the ‘fielding target’); 
and 
‘‘(C) technology maturation, prototyping, and a 
modular open system approach to evolve system ca-
pabilities and improve interoperability. 
‘‘(b) CONSIDERATIONS.—In establishing goals under 
subsection (a) for the program, the Secretary of Defense 
shall consider each of the following: 
‘‘(1) The capability needs and timeframe speci-
fied in the initial capabilities document, opportuni-
ties for evolution of capabilities, and minimum ac-
ceptable capability increments. 
‘‘(2) Resources available to fund the develop-
ment, production, and life cycle of the program, 
using a reasonable estimate of future defense budg-
ets. 
‘‘(3) The number of end items expected to be 
procured under the program. 
‘‘(4) Trade-offs among cost, schedule, technical 
risk, and performance objectives identified in the 
analysis of alternatives required under section 2366a 
of this title. 
‘‘(5) The independent cost estimate established 
pursuant to section 2334(a)(6) of this title.
941 
‘‘(6) The independent technical risk assessment 
conducted or approved under section 2448b of this 
title. 
‘‘(c) DELEGATION.—The responsibilities of the Sec-
retary of Defense in subsection (a) may be delegated only 
to the Deputy Secretary of Defense or the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘program acquisition unit cost’ 
has the meaning provided in section 2432(a) of this 
title. 
‘‘(2) The term ‘initial capabilities document’ 
has the meaning provided in section 2366a(d)(2) of 
this title. 
‘‘§ 2448b. Independent technical risk assessments 
‘‘(a) IN GENERAL.—With respect to a major defense 
acquisition program, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall— 
‘‘(1) before any decision to grant Milestone A 
approval for the program pursuant to section 2366a 
of this title, identify critical technologies that need 
to be matured in the program; and 
‘‘(2) before any decision to grant Milestone B 
approval for the program pursuant to section 2366b
942 
of this title, any decision to enter into low-rate ini-
tial production or full-rate production, or at any 
other time considered appropriate by the Under Sec-
retary, conduct or approve an independent technical 
risk assessment for the program, including the iden-
tification of any critical technologies that have not 
been successfully demonstrated in a relevant envi-
ronment. 
‘‘(b) CATEGORIZATION OF TECHNICAL RISK LEV-
ELS.—The Under Secretary shall issue guidance and a 
framework for categorizing the degree of technical risk in 
a major defense acquisition program. 
‘‘§ 2448c. Adherence to requirements and thresholds 
in major defense acquisition programs 
‘‘(a) CAPABILITIES
DETERMINATION.—The Sec-
retary of the military department concerned shall ensure 
that the program capability document supporting a Mile-
stone B or subsequent milestone for a major defense ac-
quisition program may not be submitted to the Joint Re-
quirements Oversight Council for approval until the Chief 
of the armed force concerned determines in writing that 
the requirements in the document are necessary and real-
istic in relation to the program cost and fielding targets 
established under section 2448a(a) of this title.
943 
‘‘(b) COMPLIANCE WITH TARGETS BEFORE MILE-
STONE B APPROVAL.—A major defense acquisition pro-
gram may not receive Milestone B approval until the mile-
stone decision authority for the program determines in 
writing that the estimated program acquisition unit cost 
and the estimated date for initial operational capability 
for the baseline description for the program (established 
under section 2435) do not exceed the program cost and 
fielding targets established under section 2448a(a) of this 
title. If such estimated cost is higher than the program 
cost target or if such estimated date is later than the field-
ing target, the milestone decision authority may request 
that the Secretary of Defense increase the program cost 
target or delay the fielding target, as applicable.’’. 
(b) EFFECTIVE DATE.—Subchapter III of chapter 
144B of title 10, United States Code, as added by sub-
section (a), shall apply with respect to major defense ac-
quisition programs that reach Milestone A after October 
1, 2016. 
(c) MODIFICATION OF MILESTONE DECISION AU-
THORITY.—Effective October 1, 2016, subsection (d) of 
section 2430 of title 10, United States Code, as added by 
section 825(a) of the National Defense Authorization Act 
for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 907), 
is amended—
944 
(1) in paragraph (2)(A), by inserting ‘‘subject 
to paragraph (5),’’ before ‘‘the Secretary deter-
mines’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(5) The authority of the Secretary of Defense to 
designate an alternative milestone decision authority for 
a program with respect to which the Secretary determines 
that the program is addressing a joint requirement, as set 
forth in paragraph (2)(A), shall apply only for a major 
defense acquisition program that reaches Milestone A 
after October 1, 2016, and before October 1, 2019.’’. 
SEC. 1704. TRANSPARENCY IN MAJOR DEFENSE ACQUISI-
TION PROGRAMS. 
(a) REPORTS ON MILESTONE DECISION METRICS.— 
Subchapter III of chapter 144B of title 10, United States 
Code, as added by section 1703, is amended by adding 
at the end the following new section: 
‘‘§ 2448d. Reports on milestone decision metrics 
‘‘(a) REPORT ON MILESTONE A.—Not later than 15 
days after granting Milestone A approval for a major de-
fense acquisition program, the milestone decision author-
ity for the program shall provide to the congressional de-
fense committees and, in the case of intelligence or intel-
ligence-related activities, the congressional intelligence
945 
committees a brief summary report that contains the fol-
lowing elements: 
‘‘(1) The program cost and fielding targets es-
tablished by the Secretary of Defense under section 
2448a(a) of this title. 
‘‘(2) The estimated cost and schedule for the 
program established by the military department con-
cerned, including— 
‘‘(A) the dollar values estimated for the 
program acquisition unit cost and total life- 
cycle cost; and 
‘‘(B) the planned dates for each program 
milestone and initial operational capability. 
‘‘(3) The independent estimated cost for the 
program established pursuant to section 2334(a)(6) 
of this title, and any independent estimated schedule 
for the program, including— 
‘‘(A) the dollar values estimated for the 
program acquisition unit cost and total life- 
cycle cost; and 
‘‘(B) the planned dates for each program 
milestone and initial operational capability. 
‘‘(4) A summary of the technical risks associ-
ated with the program, as determined by the mili-
946 
tary department concerned, including identification 
of any critical technologies that need to be matured. 
‘‘(5) A summary of the independent technical 
risk assessment conducted or approved under section 
2448b of this title, including identification of any 
critical technologies that need to be matured. 
‘‘(6) A summary of any sufficiency review con-
ducted by the Director of Cost Assessment and Pro-
gram Evaluation of the analysis of alternatives per-
formed for the program (as referred to in section 
2366a(b)(6) of this title). 
‘‘(7) Any other information the milestone deci-
sion authority considers relevant. 
‘‘(b) REPORT ON MILESTONE B.—Not later than 15 
days after granting Milestone B approval for a major de-
fense acquisition program, the milestone decision author-
ity for the program shall provide to the congressional de-
fense committees and, in the case of intelligence or intel-
ligence-related activities, the congressional intelligence 
committees a brief summary report that contains the fol-
lowing elements: 
‘‘(1) The program cost and fielding targets es-
tablished by the Secretary of Defense under section 
2448a(a) of this title.
947 
‘‘(2) The estimated cost and schedule for the 
program established by the military department con-
cerned, including— 
‘‘(A) the dollar values estimated for the 
program acquisition unit cost, average procure-
ment unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for each program 
milestone, initial operational test and evalua-
tion, and initial operational capability. 
‘‘(3) The independent estimated cost for the 
program established pursuant to section 2334(a)(6) 
of this title, and any independent estimated schedule 
for the program, including— 
‘‘(A) the dollar values estimated for the 
program acquisition unit cost, average procure-
ment unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for each program 
milestone, initial operational test and evalua-
tion, and initial operational capability. 
‘‘(4) A summary of the technical risks associ-
ated with the program, as determined by the mili-
tary department concerned, including identification 
of any critical technologies that have not been suc-
cessfully demonstrated in a relevant environment.
948 
‘‘(5) A summary of the independent technical 
risk assessment conducted or approved under section 
2448b of this title, including identification of any 
critical technologies that have not been successfully 
demonstrated in a relevant environment. 
‘‘(6) A statement of whether a modular open 
system approach is being used for the program. 
‘‘(7) Any other information the milestone deci-
sion authority considers relevant. 
‘‘(c) REPORT ON MILESTONE C.—Not later than 15 
days after granting Milestone C approval for a major de-
fense acquisition program, the milestone decision author-
ity for the program shall provide to the congressional de-
fense committees and, in the case of intelligence or intel-
ligence-related activities, the congressional intelligence 
committees a brief summary report that contains the fol-
lowing: 
‘‘(1) The estimated cost and schedule for the 
program established by the military department con-
cerned, including— 
‘‘(A) the dollar values estimated for the 
program acquisition unit cost, average procure-
ment unit cost, and total life-cycle cost; and
949 
‘‘(B) the planned dates for initial oper-
ational test and evaluation and initial oper-
ational capability. 
‘‘(2) The independent estimated cost for the 
program established pursuant to section 2334(a)(6) 
of this title, and any independent estimated schedule 
for the program, including— 
‘‘(A) the dollar values estimated for the 
program acquisition unit cost, average procure-
ment unit cost, and total life-cycle cost; and 
‘‘(B) the planned dates for initial oper-
ational test and evaluation and initial oper-
ational capability. 
‘‘(3) A summary of any production, manufac-
turing, and fielding risks associated with the pro-
gram. 
‘‘(d) ADDITIONAL INFORMATION.—At the request of 
any of the congressional defense committees or, in the case 
of intelligence or intelligence-related activities, the con-
gressional intelligence committees, the milestone decision 
authority shall submit to the committee further informa-
tion or underlying documentation for the information in 
a report submitted under subsection (a), (b), or (c), in-
cluding the independent cost and schedule estimates and
950 
the independent technical risk assessments referred to in 
those subsections. 
‘‘(e) CONGRESSIONAL INTELLIGENCE COMMITTEES 
DEFINED.—In this section, the term ‘congressional intel-
ligence committees’ has the meaning given that term in 
section 437(c) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by adding 
at the end the following new item: 
‘‘2448d. Reports on milestone decision metrics.’’. 
SEC. 1705. AMENDMENTS RELATING TO TECHNICAL DATA 
RIGHTS. 
(a) RIGHTS RELATING TO ITEM OR PROCESS DEVEL-
OPED EXCLUSIVELY AT PRIVATE EXPENSE.—Subsection 
(a)(2)(C)(iii) of section 2320 of title 10, United States 
Code, is amended by inserting after ‘‘or process data’’ the 
following: ‘‘, including such data pertaining to a major 
system component’’. 
(b) RIGHTS RELATING TO INTERFACE OR MAJOR 
SYSTEM INTERFACE.—Subsection (a)(2) of section 2320 
of such title is further amended— 
(1) by redesignating subparagraphs (E), (F), 
and (G) as subparagraphs (F), (I), and (J), respec-
tively; 
(2) in subparagraph (B), by striking ‘‘Except 
as provided in subparagraphs (C) and (D),’’ and in-
951 
serting ‘‘Except as provided in subparagraphs (C), 
(D), and (E),’’; 
(3) in subparagraph (D)(i), by striking sub-
clause (II) and inserting the following: 
‘‘(II) is a release, disclosure, or use of 
technical data pertaining to an interface 
between an item or process and other 
items or processes; or’’; 
(4) by inserting after subparagraph (D) the fol-
lowing new subparagraph (E): 
‘‘(E) Notwithstanding subparagraph (B), the 
United States shall have government purpose rights 
in technical data pertaining to a major system inter-
face developed exclusively at private expense and 
used in a modular open system approach pursuant 
to section 2446a of this title.’’; 
(5) in subparagraph (F), as redesignated by 
paragraph (1), by striking ‘‘In the case of’’ and in-
serting ‘‘Except as provided in subparagraphs (G) 
and (H), in the case of’’; 
(6) by inserting after subparagraph (F), as so 
redesignated, the following new subparagraphs (G) 
and (H): 
‘‘(G) Notwithstanding subparagraph (F), the 
United States shall have government purpose rights
952 
in technical data pertaining to an interface between 
an item or process and other items or processes that 
was developed in part with Federal funds and in 
part at private expense, except in any case in which 
the Secretary of Defense determines, on the basis of 
criteria established in the regulations, that negotia-
tion of different rights in such technical data would 
be in the best interest of the United States. 
‘‘(H) Notwithstanding subparagraph (F), the 
United States shall have government purpose rights 
in technical data pertaining to a major system inter-
face developed in part with Federal funds and in 
part at private expense and used in a modular open 
system approach pursuant to section 2446a of this 
title.’’; and 
(7) in subparagraph (J), as redesignated by 
paragraph (1), by striking ‘‘provided under subpara-
graph (C) or (D),’’ and inserting ‘‘provided under 
subparagraph (C), (D), (E), or (H),’’. 
(c) AMENDMENT RELATING TO NEGOTIATED RIGHTS 
FOR ITEM OR PROCESS DEVELOPED WITH MIXED FUND-
ING.—Section (a)(2)(F) of section 2320 of such title, as 
redesignated by subsection (b)(1) of this section, is further 
amended by striking the period at the end of the first sen-
tence in the matter preceding clause (i) and all that fol-
953 
lows through ‘‘establishment of any such negotiated rights 
shall’’ and inserting ‘‘and shall be based on negotiations 
between the United States and the contractor, except in 
any case in which the Secretary of Defense determines, 
on the basis of criteria established in the regulations, that 
negotiations would not be practicable. The establishment 
of such rights shall’’. 
(d) AMENDMENT RELATING TO DEFERRED ORDER-
ING.—Subsection (b)(9) of section 2320 of such title is 
amended— 
(1) by striking ‘‘at any time’’ and inserting ‘‘, 
until the date occurring six years after acceptance of 
the last item (other than technical data) under a 
contract or the date of contract termination, which-
ever is later,’’; 
(2) by striking ‘‘or utilized in the performance 
of a contract’’ and inserting ‘‘in the performance of 
the contract’’; and 
(3) by striking clause (ii) of subparagraph (B) 
and inserting the following: 
‘‘(ii) is described in subparagraphs 
(D)(i)(II), (E), (G), and (H) of subsection 
(a)(2); and’’. 
(e) DEFINITIONS.—Section 2320 of such title is fur-
ther amended—
954 
(1) in subsection (f), by inserting ‘‘COVERED 
GOVERNMENT SUPPORT CONTRACTOR DEFINED.—’’ 
before ‘‘In this section’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) ADDITIONAL DEFINITIONS.—In this section, the 
terms ‘major system component’, ‘major system interface’, 
and ‘modular open system approach’ have the meanings 
provided in section 2446a of this title.’’. 
(f) AMENDMENTS TO ADD CERTAIN HEADINGS FOR 
READABILITY.—Section 2320(a) of such title is further 
amended— 
(1) in subparagraph (A) of paragraph (2), by 
inserting after ‘‘(A)’’ the following: ‘‘DEVELOPMENT 
EXCLUSIVELY WITH FEDERAL FUNDS.—’’; 
(2) in subparagraph (B) of such paragraph, by 
inserting after ‘‘(B)’’ the following: ‘‘DEVELOPMENT 
EXCLUSIVELY AT PRIVATE EXPENSE.—’’; and 
(3) in subparagraph (F) of such paragraph, as 
redesignated by subsection (b) of this section, by in-
serting after ‘‘(F)’’ the following: ‘‘DEVELOPMENT 
IN PART WITH FEDERAL FUNDS AND IN PART AT 
PRIVATE EXPENSE.—’’.
955 
TITLE XVIII—MATTERS RELAT-
ING 
TO 
SMALL 
BUSINESS 
PROCUREMENT 
Subtitle 
A—Improving 
Trans-
parency and Clarity for Small 
Businesses 
SEC. 1801. PLAIN LANGUAGE REWRITE OF REQUIREMENTS 
FOR SMALL BUSINESS PROCUREMENTS. 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended to read as follows: 
‘‘(a) SMALL BUSINESS PROCUREMENTS.— 
‘‘(1) IN GENERAL.—For purposes of this Act, 
small business concerns shall receive any award or 
contract if such award or contract is, in the deter-
mination of the Administrator and the contracting 
agency, in the interest of— 
‘‘(A) maintaining or mobilizing the full 
productive capacity of the United States; 
‘‘(B) war or national defense programs; or 
‘‘(C) assuring that a fair proportion of the 
total purchase and contracts for goods and 
services of the Government in each industry 
category (as described under paragraph (2)) are 
awarded to small business concerns. 
‘‘(2) INDUSTRY CATEGORY DEFINED.—
956 
‘‘(A) IN GENERAL.—In this subsection, the 
term ‘industry category’ means a discrete group 
of similar goods and services, as determined by 
the Administrator in accordance with the North 
American Industry Classification System codes 
used to establish small business size standards, 
except that the Administrator shall limit an in-
dustry category to a greater extent than pro-
vided under the North American Industry Clas-
sification codes if the Administrator receives 
evidence indicating that further segmentation of 
the industry category is warranted— 
‘‘(i) due to special capital equipment 
needs; 
‘‘(ii) due to special labor require-
ments; 
‘‘(iii) due to special geographic re-
quirements, except as provided in subpara-
graph (B); 
‘‘(iv) due to unique Federal buying 
patterns or requirements; or 
‘‘(v) to recognize a new industry. 
‘‘(B) EXCEPTION
FOR
GEOGRAPHIC
RE-
QUIREMENTS.—The Administrator may not fur-
957 
ther segment an industry category based on ge-
ographic requirements unless— 
‘‘(i) the Government typically des-
ignates the geographic area where work for 
contracts for goods or services is to be per-
formed; 
‘‘(ii) Government purchases comprise 
the major portion of the entire domestic 
market for such goods or services; and 
‘‘(iii) it is unreasonable to expect com-
petition from business concerns located 
outside of the general geographic area due 
to the fixed location of facilities, high mo-
bilization costs, or similar economic fac-
tors. 
‘‘(3) DETERMINATIONS
WITH
RESPECT
TO 
AWARDS
OR
CONTRACTS.—Determinations made 
pursuant to paragraph (1) may be made for indi-
vidual awards or contracts, any part of an award or 
contract or task order, or for classes of awards or 
contracts or task orders. 
‘‘(4) INCREASING PRIME CONTRACTING OPPOR-
TUNITIES FOR SMALL BUSINESS CONCERNS.— 
‘‘(A) DESCRIPTION
OF
COVERED
PRO-
POSED PROCUREMENTS.—The requirements of
958 
this paragraph shall apply to a proposed pro-
curement that includes in its statement of work 
goods or services currently being supplied or 
performed by a small business concern and, as 
determined by the Administrator— 
‘‘(i) is in a quantity or of an esti-
mated dollar value which makes the par-
ticipation of a small business concern as a 
prime contractor unlikely; 
‘‘(ii) in the case of a proposed pro-
curement for construction, if such pro-
posed procurement seeks to bundle or con-
solidate discrete construction projects; or 
‘‘(iii) is a solicitation that involves an 
unnecessary or unjustified bundling of con-
tract requirements. 
‘‘(B) NOTICE TO PROCUREMENT CENTER 
REPRESENTATIVES.—With respect to proposed 
procurements described in subparagraph (A), at 
least 30 days before issuing a solicitation and 
concurrent with other processing steps required 
before issuing the solicitation, the contracting 
agency shall provide a copy of the proposed pro-
curement to the procurement center representa-
tive of the contracting agency (as described in
959 
subsection (l)) along with a statement explain-
ing— 
‘‘(i) why the proposed procurement 
cannot be divided into reasonably small 
lots (not less than economic production 
runs) to permit offers on quantities less 
than the total requirement; 
‘‘(ii) why delivery schedules cannot be 
established on a realistic basis that will en-
courage the participation of small business 
concerns in a manner consistent with the 
actual requirements of the Government; 
‘‘(iii) why the proposed procurement 
cannot be offered to increase the likelihood 
of the participation of small business con-
cerns; 
‘‘(iv) in the case of a proposed pro-
curement for construction, why the pro-
posed procurement cannot be offered as 
separate discrete projects; or 
‘‘(v) why the agency has determined 
that the bundling of contract requirements 
is necessary and justified. 
‘‘(C) ALTERNATIVES TO INCREASE PRIME 
CONTRACTING
OPPORTUNITIES
FOR
SMALL
960 
BUSINESS CONCERNS.—If the procurement cen-
ter representative believes that the proposed 
procurement will make the participation of 
small business concerns as prime contractors 
unlikely, the procurement center representative, 
within 15 days after receiving the statement de-
scribed in subparagraph (B), shall recommend 
to the contracting agency alternative procure-
ment methods for increasing prime contracting 
opportunities for small business concerns. 
‘‘(D) FAILURE TO AGREE ON AN ALTER-
NATIVE PROCUREMENT METHOD.—If the pro-
curement center representative and the con-
tracting agency fail to agree on an alternative 
procurement method, the Administrator shall 
submit the matter to the head of the appro-
priate department or agency for a determina-
tion. 
‘‘(5) CONTRACTS FOR SALE OF GOVERNMENT 
PROPERTY.—With respect to a contract for the sale 
of Government property, small business concerns 
shall receive any such contract if, in the determina-
tion of the Administrator and the disposal agency, 
the award of such contract is in the interest of as-
suring that a fair proportion of the total sales of
961 
Government property be made to small business con-
cerns. 
‘‘(6) SALE OF ELECTRICAL POWER OR OTHER 
PROPERTY.—Nothing in this subsection shall be con-
strued to change any preferences or priorities estab-
lished by law with respect to the sale of electrical 
power or other property by the Federal Government. 
‘‘(7) COSTS EXCEEDING FAIR MARKET PRICE.— 
A contract may not be awarded under this sub-
section if the cost of the contract to the awarding 
agency exceeds a fair market price.’’. 
SEC. 1802. IMPROVING REPORTING ON SMALL BUSINESS 
GOALS. 
(a) IN GENERAL.—Section 15(h)(2)(E) of the Small 
Business Act (15 U.S.C. 644(h)(2)(E)) is amended— 
(1) in clause (i)— 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(V) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed
962 
to be small business concerns for pur-
poses of the initial contract; and 
‘‘(VI) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small busi-
ness concerns owned and controlled by 
socially and economically disadvan-
taged individuals, small business con-
cerns owned and controlled by women, 
or a subset of any such concerns;’’; 
(2) in clause (ii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed 
to be small business concerns owned 
and controlled by service-disabled vet-
963 
erans for purposes of the initial con-
tract; and 
‘‘(VII) that were awarded using a 
procurement method that restricted 
competition to qualified HUBZone 
small business concerns, small busi-
ness concerns owned and controlled by 
socially and economically disadvan-
taged individuals, small business con-
cerns owned and controlled by women, 
or a subset of any such concerns;’’; 
(3) in clause (iii)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by 
another entity after the initial con-
tract was awarded and as a result of 
the purchase, would no longer be 
deemed to be qualified HUBZone 
small business concerns for purposes 
of the initial contract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted
964 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, small business con-
cerns owned and controlled by socially 
and economically disadvantaged indi-
viduals, 
small 
business 
concerns 
owned and controlled by women, or a 
subset of any such concerns;’’; 
(4) in clause (iv)— 
(A) in subclause (V), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclauses: 
‘‘(VII) that were purchased by 
another entity after the initial con-
tract was awarded and as a result of 
the purchase, would no longer be 
deemed to be small business concerns 
owned and controlled by socially and 
economically disadvantaged individ-
uals for purposes of the initial con-
tract; and 
‘‘(VIII) that were awarded using 
a procurement method that restricted 
competition to small business concerns
965 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small busi-
ness concerns owned and controlled by 
women, or a subset of any such con-
cerns;’’; 
(5) in clause (v)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; 
(B) in subclause (V), by inserting ‘‘and’’ at 
the end; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed 
to be small business concerns owned 
by an Indian tribe other than an Alas-
ka Native Corporation for purposes of 
the initial contract;’’; 
(6) in clause (vi)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end;
966 
(B) in subclause (V), by inserting ‘‘and’’ at 
the end; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed 
to be small business concerns owned 
by a Native Hawaiian Organization 
for purposes of the initial contract;’’; 
(7) in clause (vii)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following new 
subclause: 
‘‘(VI) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed 
to be small business concerns owned 
by an Alaska Native Corporation for 
purposes of the initial contract; and’’; 
and 
(8) in clause (viii)—
967 
(A) in subclause (VII), by striking ‘‘and’’ 
at the end; 
(B) in subclause (VIII), by striking ‘‘and’’ 
at the end; and 
(C) by adding at the end the following new 
subclauses: 
‘‘(IX) that were purchased by an-
other entity after the initial contract 
was awarded and as a result of the 
purchase, would no longer be deemed 
to be small business concerns owned 
and controlled by women for purposes 
of the initial contract; and 
‘‘(X) that were awarded using a 
procurement method that restricted 
competition to small business concerns 
owned and controlled by service-dis-
abled veterans, qualified HUBZone 
small business concerns, small busi-
ness concerns owned and controlled by 
socially and economically disadvan-
taged individuals, or a subset of any 
such concerns; and’’. 
(b) EFFECTIVE DATE.—The Administrator of the 
Small Business Administration shall be required to report
968 
on the information required by sections 15(h)(2)(E)(i)(V), 
15(h)(2)(E)(ii)(VI), 
15(h)(2)(E)(iii)(VII), 
15(h)(2)(E)(iv)(VII), 
15(h)(2)(E)(v)(VI), 
15(h)(2)(E)(vi)(VI), 
15(h)(2)(E)(vii)(VI), 
and 
15(h)(2)(E)(viii)(IX) only beginning on the date that the 
Federal Procurement Data System, System for Award 
Management or any new or successor system is able to 
report such data. 
SEC. 1803. TRANSPARENCY IN SMALL BUSINESS GOALS. 
Section 15(h)(3) of the Small Business Act (15 
U.S.C. 644(h)(3)) is amended to read as follows: 
‘‘(3) PROCUREMENT DATA.— 
‘‘(A) FEDERAL PROCUREMENT DATA SYS-
TEM.— 
‘‘(i) IN GENERAL.—To assist in the 
implementation of this section, the Admin-
istrator shall have access to information 
collected through the Federal Procurement 
Data System, Federal Subcontracting Re-
porting System, or any new or successor 
system. 
‘‘(ii) GSA REPORT.—On the date that 
the Administrator makes available the re-
port required by paragraph (2), the Ad-
ministrator of the General Services Admin-
969 
istration shall submit a report to the Presi-
dent and Congress, and to make available 
on a public Web site, a report in the same 
form and manner, and including the same 
information, as the report under paragraph 
(2). Such report shall include all procure-
ments made for the period covered by the 
report and may not exclude any contract 
awarded. 
‘‘(B) 
AGENCY
PROCUREMENT
DATA 
SOURCES.—To assist in the implementation of 
this section, the head of each contracting agen-
cy shall provide, upon request of the Adminis-
trator, 
procurement 
information 
collected 
through agency data collection sources in exist-
ence at the time of the request. Contracting 
agencies shall not be required to establish new 
data collection systems to provide such data.’’. 
SEC. 1804. UNIFORMITY IN PROCUREMENT TERMINOLOGY. 
(a) IN GENERAL.—Section 15(j)(1) of the Small 
Business Act (15 U.S.C. 644(j)(1)) is amended by striking 
‘‘greater than $2,500 but not greater than $100,000’’ and 
inserting ‘‘greater than the micro-purchase threshold, but 
not greater than the simplified acquisition threshold’’.
970 
(b) TECHNICAL AMENDMENT.—Section 3(m) of the 
Small Business Act (15 U.S.C. 632(m)) is amended to 
read as follows: 
‘‘(m) 
DEFINITIONS
PERTAINING
TO
CON-
TRACTING.—In this Act: 
‘‘(1) PRIME CONTRACT.—The term ‘prime con-
tract’ has the meaning given such term in section 
8701(4) of title 41, United States Code. 
‘‘(2) PRIME
CONTRACTOR.—The term ‘prime 
contractor’ has the meaning given such term in sec-
tion 8701(5) of title 41, United States Code. 
‘‘(3) SIMPLIFIED ACQUISITION THRESHOLD.— 
The term ‘simplified acquisition threshold’ has the 
meaning given such term in section 134 of title 41, 
United States Code. 
‘‘(4) 
MICRO-PURCHASE
THRESHOLD.—The 
term ‘micro-purchase threshold’ has the meaning 
given such term in section 1902(a) of title 41, 
United States Code. 
‘‘(5) TOTAL PURCHASE AND CONTRACTS FOR 
PROPERTY
AND
SERVICES.—The term ‘total pur-
chases and contracts for property and services’ shall 
mean total number and total dollar amount of con-
tracts and orders for property and services.’’.
971 
Subtitle B—Clarifying the Roles of 
Small Business Advocates 
SEC. 1811. SCOPE OF REVIEW BY PROCUREMENT CENTER 
REPRESENTATIVES. 
Section 15(l) of the Small Business Act (15 U.S.C. 
644(l)) is amended by adding at the end the following: 
‘‘(9) SCOPE OF REVIEW.—The Administrator— 
‘‘(A) may not limit the scope of review by 
the Procurement Center Representative for any 
solicitation of a contract or task order without 
regard to whether the contract or task order or 
part of the contract or task order is set aside 
for small business concerns, whether 1 or more 
contract or task order awards are reserved for 
small business concerns under a multiple award 
contract, or whether or not the solicitation 
would result in a bundled or consolidated con-
tract (as defined in subsection (s)) or a bundled 
or consolidated task order; and 
‘‘(B) may, unless the contracting agency 
requests a review, limit the scope of review by 
the Procurement Center Representative for any 
solicitation of a contract or task order if such 
procurement is conducted pursuant to section 
22 of the Foreign Military Sales Act (22 U.S.C.
972 
2762), is a humanitarian operation as defined 
in section 401(e) of title 10, United States 
Code, or is for a contingency operation, as de-
fined in section 101(a)(13) of title 10, United 
States Code.’’. 
SEC. 1812. RESPONSIBILITIES OF COMMERCIAL MARKET 
REPRESENTATIVES. 
Section 4(h) of the Small Business Act (as added by 
section 865 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92)) is amended to 
read as follows: 
‘‘(h) COMMERCIAL MARKET REPRESENTATIVES.— 
‘‘(1) DUTIES.—The principal duties of a Com-
mercial Market Representative employed by the Ad-
ministrator and reporting to the senior official ap-
pointed by the Administrator with responsibilities 
under sections 8, 15, 31, and 36 (or the designee of 
such official) shall be to advance the policies estab-
lished in section 8(d)(1) relating to subcontracting. 
Such duties shall include— 
‘‘(A) helping prime contractors to find 
small business concerns that are capable of per-
forming subcontracts;
973 
‘‘(B) for contractors awarded contracts 
containing the clause described in section 
8(d)(3), providing— 
‘‘(i) counseling on the contractor’s re-
sponsibility to maximize subcontracting op-
portunities for small business concerns; 
‘‘(ii) instruction on methods and tools 
to identify potential subcontractors that 
are small business concerns; and 
‘‘(iii) assistance to increase awards to 
subcontractors that are small business con-
cerns through visits, training, and reviews 
of past performance; 
‘‘(C) providing counseling on how a small 
business concern may promote its capacity to 
contractors awarded contracts containing the 
clause described in section 8(d)(3); and 
‘‘(D) conducting periodic reviews of con-
tractors awarded contracts containing the 
clause described in section 8(d)(3) to assess 
compliance with subcontracting plans required 
under section 8(d)(6). 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—Consistent with the 
requirements of subparagraph (B), a commer-
974 
cial market representative referred to in section 
15(q)(3) shall have a Level I Federal Acquisi-
tion Certification in Contracting (or any suc-
cessor certification) or the equivalent Depart-
ment of Defense certification, except that a 
commercial market representative who was 
serving on or before the date of the enactment 
of the National Defense Authorization Act for 
Fiscal Year 2016 may continue to serve as a 
commercial market representative for a period 
of 5 years beginning on such date without such 
a certification. 
‘‘(B) DELAY OF CERTIFICATION REQUIRE-
MENT.— 
‘‘(i) TIMING.—The certification de-
scribed in subparagraph (A) is not re-
quired for any person serving as a com-
mercial market representative until the 
date that is one calendar year after the 
date such person is appointed as a com-
mercial market representative. 
‘‘(ii) 
APPLICATION.—The 
require-
ments of clause (i) shall be included in any 
initial job posting for the position of a 
commercial 
market 
representative 
and
975 
shall apply to any person appointed as a 
commercial market representative after 
November 25, 2015.’’. 
SEC. 1813. DUTIES OF THE OFFICE OF SMALL AND DIS-
ADVANTAGED BUSINESS UTILIZATION. 
Section 15(k) of the Small Business Act (15 U.S.C. 
644(k)), as amended by section 870 of the National De-
fense Authorization Act for Fiscal Year 2016 (Public Law 
114–92), is amended— 
(1) by striking ‘‘section 8, 15 or 44’’ and in-
serting ‘‘section 8, 15, 31, 36, or 44’’; 
(2) by striking ‘‘sections 8 and 15’’ each place 
such term appears and inserting ‘‘sections 8, 15, 31, 
36, and 44’’; 
(3) in paragraph (10), by striking ‘‘section 
8(a)’’ and inserting ‘‘section 8, 15, 31, or 36’’; 
(4) in paragraph (17)(C), by striking the period 
at the end, and inserting ‘‘; and’’; 
(5) by inserting after paragraph (17) the fol-
lowing new paragraph: 
‘‘(18) shall review summary data provided by 
purchase card issuers of purchases made by the 
agency greater than the micro-purchase threshold, 
and less than the simplified acquisition threshold to 
ensure that the purchases have been made in compli-
976 
ance with the provisions of this Act and have been 
properly recorded in the Federal Procurement Data 
System, if the method of payment is a purchase card 
issued by the Department of Defense pursuant to 
section 2784 of title 10, United States Code, or by 
the head of an executive agency pursuant to section 
1909 of title 41, United States Code;’’; and 
(6) in paragraph (16)— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(D) any failure of the agency to comply 
with section 8, 15, 31, or 36;’’. 
SEC. 1814. IMPROVING CONTRACTOR COMPLIANCE. 
(a) REQUIREMENTS FOR THE OFFICE OF SMALL AND 
DISADVANTAGED BUSINESS UTILIZATION.—Section 15(k) 
of the Small Business Act (15 U.S.C. 644(k)(8)), as 
amended by this Act, is further amended by inserting after 
paragraph (18) (as inserted by section 1813 of this Act) 
the following: 
‘‘(19) shall provide assistance to a small busi-
ness concern awarded a contract or subcontract 
under this Act or under title 10 or title 41, United 
States Code, in finding resources for education and
977 
training on compliance with contracting regulations 
(including the Federal Acquisition Regulation) after 
award of such a contract or subcontract; and’’. 
(b) REQUIREMENTS UNDER THE MENTOR-PROTEGE 
PROGRAM OF THE DEPARTMENT OF DEFENSE.—Section 
831(e)(1) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1607; 
10 U.S.C. 2302 note) is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by inserting at the end the following new 
subparagraph: 
‘‘(D) the assistance the mentor firm will 
provide to the protege firm in understanding 
contract regulations of the Federal Government 
and the Department of Defense (including the 
Federal Acquisition Regulation and the Defense 
Federal Acquisition Regulation Supplement) 
after award of a subcontract under this section, 
if applicable.’’. 
(c) RESOURCES FOR SMALL BUSINESS CONCERNS.— 
Section 15 of the Small Business Act (15 U.S.C. 644) is
978 
amended by adding at the end the following new sub-
section: 
‘‘(t) POST-AWARD COMPLIANCE RESOURCES.—The 
Administrator shall provide to small business development 
centers and entities participating in the Procurement 
Technical Assistance Cooperative Agreement Program 
under chapter 142 of title 10, United States Code, and 
shall make available on the website of the Administration, 
a list of resources for small business concerns seeking edu-
cation and assistance on compliance with contracting reg-
ulations (including the Federal Acquisition Regulation) 
after award of a contract or subcontract.’’. 
(d) REQUIREMENTS
FOR PROCUREMENT CENTER 
REPRESENTATIVES.—Section 15(l)(2) of the Small Busi-
ness Act (15 U.S.C. 644(l)(2)) is amended— 
(1) by redesignating subparagraph (I) as sub-
paragraph (J); 
(2) in subparagraph (H), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (H) the fol-
lowing new subparagraph: 
‘‘(I) assist small business concerns with 
finding resources for education and training on 
compliance with contracting regulations (includ-
979 
ing the Federal Acquisition Regulation) after 
award of a contract or subcontract; and’’. 
(e) REQUIREMENTS UNDER THE MENTOR-PROTEGE 
PROGRAM OF THE SMALL BUSINESS ADMINISTRATION.— 
Section 45(b)(3) of the Small Business Act (15 U.S.C. 
657r(b)(3)) is amended by adding at the end the following 
new subparagraph: 
‘‘(K) The extent to which assistance with 
compliance with the requirements of contracting 
with the Federal Government after award of a 
contract or subcontract under this section.’’. 
SEC. 1815. RESPONSIBILITIES OF BUSINESS OPPORTUNITY 
SPECIALISTS. 
Section 4(g) of the Small Business Act (as added by 
section 865 of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114–92)) is amended to 
read as follows: 
‘‘(g) BUSINESS OPPORTUNITY SPECIALISTS.— 
‘‘(1) DUTIES.—The exclusive duties of a Busi-
ness Opportunity Specialist employed by the Admin-
istrator and reporting to the senior official appointed 
by the Administrator with responsibilities under sec-
tions 8, 15, 31, and 36 (or the designee of such offi-
cial) shall be to implement sections 7, 8, and 45 and
980 
to complete other duties related to contracting pro-
grams under this Act. Such duties shall include— 
‘‘(A) with respect to small business con-
cerns eligible to receive contracts and sub-
contracts pursuant to section 8(a)— 
‘‘(i) providing guidance, counseling, 
and referrals for assistance with technical, 
management, financial, or other matters 
that will improve the competitive viability 
of such concerns; 
‘‘(ii) identifying causes of success or 
failure of such concerns; 
‘‘(iii) providing comprehensive assess-
ments of such concerns, including identi-
fying the strengths and weaknesses of such 
concerns; 
‘‘(iv) monitoring and documenting 
compliance with the requirements of sec-
tions 7 and 8 and any regulations imple-
menting those sections; 
‘‘(v) explaining the requirements of 
sections 7, 8, 15, 31, 36 and 45; and 
‘‘(vi) advising on compliance with con-
tracting regulations (including the Federal
981 
Acquisition Regulation) after award of 
such a contract or subcontract; 
‘‘(B) reviewing and monitoring compliance 
with mentor-protege agreements under section 
45; 
‘‘(C) representing the interests of the Ad-
ministrator and small business concerns in the 
award, modification, and administration of con-
tracts and subcontracts awarded pursuant to 
section 8(a); and 
‘‘(D) reporting fraud or abuse under sec-
tion 7, 8, 15, 31, 36 or 45 or any regulations 
implementing such sections. 
‘‘(2) CERTIFICATION REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—Consistent with the 
requirements of subparagraph (B), a Business 
Opportunity Specialist described under section 
7(j)(10)(D) shall have a Level I Federal Acqui-
sition Certification in Contracting (or any suc-
cessor certification) or the equivalent Depart-
ment of Defense certification, except that a 
Business Opportunity Specialist who was serv-
ing on or before January 3, 2013, may continue 
to serve as a Business Opportunity Specialist
982 
for a period of 5 years beginning on such date 
without such a certification. 
‘‘(B) DELAY OF CERTIFICATION REQUIRE-
MENT.— 
‘‘(i) TIMING.—The certification de-
scribed in subparagraph (A) is not re-
quired for any person serving as a Busi-
ness Opportunity Specialist until the date 
that is one calendar year after the date 
such person is appointed as a Business 
Opportunity Specialist. 
‘‘(ii) 
APPLICATION.—The 
require-
ments of clause (i) shall be included in any 
initial job posting for the position of a 
Business Opportunity Specialist and shall 
apply to any person appointed as a Busi-
ness Opportunity Specialist after January 
3, 2013’’. 
Subtitle C—Strengthening Oppor-
tunities for Competition in Sub-
contracting 
SEC. 1821. GOOD FAITH IN SUBCONTRACTING. 
(a) TRANSPARENCY IN SUBCONTRACTING GOALS.— 
Section 8(d)(9) of the Small Business Act (15 U.S.C. 
637(d)(9)) is amended—
983 
(1) by striking ‘‘(9) The failure’’ and inserting 
the following: 
‘‘(9) MATERIAL BREACH.—The failure’’; 
(2) in subparagraph (A), by striking ‘‘or’’ at 
the end; 
(3) in subparagraph (B), by inserting ‘‘or’’ at 
the end; 
(4) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) assurances provided under paragraph 
(6)(E),’’; and 
(5) by moving the margins of subparagraphs 
(A) and (B), and the matter after subparagraph (C) 
(as inserted by paragraph (4)), 2 ems to the right. 
(b) REVIEW OF SUBCONTRACTING PLANS.—Section 
15(k) of the Small Business Act (15 U.S.C. 644(k)) is 
amended by inserting after paragraph (19) (as inserted 
by section 1814 of this Act) the following: 
‘‘(20) shall review all subcontracting plans re-
quired by section 8(d)(4) or 8(d)(5) to ensure that 
the plan provides maximum practicable opportunity 
for small business concerns to participate in the per-
formance of the contract to which the plan applies.’’. 
(c) GOOD FAITH COMPLIANCE.—Not later than 270 
days after the date of enactment of this title, the Adminis-
984 
trator of the Small Business Administration shall provide 
examples of activities that would be considered a failure 
to make a good faith effort to comply with the require-
ments imposed on an entity (other than a small business 
concern as defined under section 3 of the Small Business 
Act (15 U.S.C. 632)) that is awarded a prime contract 
containing the clauses required under paragraph (4) or (5) 
of section 8(d) of the Small Business Act (15 U.S.C. 
637(d)). 
SEC. 1822. PILOT PROGRAM TO PROVIDE OPPORTUNITIES 
FOR QUALIFIED SUBCONTRACTORS TO OB-
TAIN PAST PERFORMANCE RATINGS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)), as amended by this Act, is further amended by 
adding at the end the following new paragraph: 
‘‘(18) PILOT PROGRAM PROVIDING PAST PER-
FORMANCE RATINGS FOR OTHER SMALL BUSINESS 
SUBCONTRACTORS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator shall establish a pilot program for a 
small business concern without a past perform-
ance rating as a prime contractor performing as 
a first tier subcontractor for a covered contract 
(as defined in paragraph 13(A)) to request a 
past performance rating in the system used by
985 
the Federal Government to monitor or record 
contractor past performance. 
‘‘(B) APPLICATION.—A small business con-
cern described in subparagraph (A) shall sub-
mit an application to the appropriate official for 
a past performance rating. Such application 
shall include written evidence of the past per-
formance factors for which the small business 
concern seeks a rating and a suggested rating. 
‘‘(C) DETERMINATION.—The appropriate 
official shall submit the application from the 
small business concern to the Office of Small 
and Disadvantaged Business Utilization for the 
covered contract and to the prime contractor 
for review. The Office of Small and Disadvan-
taged Business Utilization and the prime con-
tractor shall, not later than 30 days after re-
ceipt of the application, submit to the appro-
priate official a response regarding the applica-
tion. 
‘‘(i) AGREEMENT ON RATING.—If the 
Office of Small and Disadvantaged Busi-
ness Utilization and the prime contractor 
agree on a past performance rating, or if 
either the Office of Small and Disadvan-
986 
taged Business Utilization or the prime 
contractor fail to respond and the respond-
ing individual agrees with the rating of the 
applicant small business concern, the ap-
propriate official shall enter the agreed- 
upon past performance rating in the sys-
tem described in subparagraph (A). 
‘‘(ii) DISAGREEMENT ON RATING.—If 
the Office of Small and Disadvantaged 
Business Utilization and the prime con-
tractor fail to respond within 30 days or if 
they disagree about the rating, or if either 
the Office of Small and Disadvantaged 
Business Utilization or the prime con-
tractor fail to respond and the responding 
individual disagrees with the rating of the 
applicant small business concern, the Of-
fice of Small and Disadvantaged Business 
Utilization or the prime contractor shall 
submit a notice contesting the application 
to the appropriate official. The appropriate 
official shall follow the requirements of 
subparagraph (D). 
‘‘(D) PROCEDURE FOR RATING.—Not later 
than 14 calendar days after receipt of a notice
987 
under subparagraph (C)(ii), the appropriate of-
ficial shall submit such notice to the applicant 
small business concern. Such concern may sub-
mit comments, rebuttals, or additional informa-
tion relating to the past performance of such 
concern not later 14 calendar days after receipt 
of such notice. The appropriate official shall 
enter into the system described in subparagraph 
(A) a rating that is neither favorable nor unfa-
vorable along with the initial application from 
the small business concern, the responses of the 
Office of Small and Disadvantaged Business 
Utilization and the prime contractor, and any 
additional information provided by the small 
business concern. A copy of the information 
submitted shall be provided to the contracting 
officer (or designee of such officer) for the cov-
ered contract. 
‘‘(E) USE
OF
INFORMATION.—A small 
business subcontractor may use a past perform-
ance rating given under this paragraph to es-
tablish its past performance for a prime con-
tract. 
‘‘(F) DURATION.—The pilot program es-
tablished under this paragraph shall terminate
988 
3 years after the date on which the first small 
business concern receives a past performance 
rating for performance as a first tier subcon-
tractor. 
‘‘(G) REPORT.—The Comptroller General 
of the United States shall begin an assessment 
of the pilot program 1 year after the establish-
ment of such program. Not later than 6 months 
after beginning such assessment, the Comp-
troller General shall submit a report to the 
Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on 
Small Business of the House of Representa-
tives, which shall include— 
‘‘(i) the number of small business con-
cerns that have received past performance 
ratings under the pilot program; 
‘‘(ii) the number of applications in 
which the contracting officer (or designee) 
or the prime contractor contested the ap-
plication of the small business concern; 
‘‘(iii) any suggestions or recommenda-
tions the Comptroller General or the small 
business concerns participating in the pro-
gram have to address disputes between the
989 
small business concern, the contracting of-
ficer (or designee), and the prime con-
tractor on past performance ratings; 
‘‘(iv) the number of small business 
concerns awarded prime contracts after re-
ceiving a past performance rating under 
this pilot; and 
‘‘(v) any suggestions or recommenda-
tion the Comptroller General has to im-
prove the operation of the pilot program. 
‘‘(H) APPROPRIATE OFFICIAL DEFINED.— 
In this paragraph, the term ‘appropriate offi-
cial’ means a Commercial Market Representa-
tive or other individual designated by the senior 
official appointed by the Administrator with re-
sponsibilities under sections 8, 15, 31, and 
36.’’. 
Subtitle D—Mentor-Protege 
Programs 
SEC. 1831. AMENDMENTS TO THE MENTOR-PROTEGE PRO-
GRAM OF THE DEPARTMENT OF DEFENSE. 
Section 831 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 
1607; 10 U.S.C. 2302 note) is amended— 
(1) in subsection (d)—
990 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) prior to the approval of that agreement, 
the Administrator of the Small Business Administra-
tion had made no finding of affiliation between the 
mentor firm and the protege firm;’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2)(A) the Administrator of the Small Busi-
ness Administration does not have a current finding 
of affiliation between the mentor firm and protege 
firm; or 
‘‘(B) the Secretary, after considering the regu-
lations promulgated by the Administrator of the 
Small Business Administration regarding affili-
ation— 
‘‘(i) does not have reason to believe that 
the mentor firm affiliated with the protege firm; 
or 
‘‘(ii) has received a formal determination 
of no affiliation between the mentor firm and 
protege firm from the Administrator after hav-
991 
ing submitted a question of affiliation to the 
Administrator; and’’; 
(2) in subsection (n), by amending paragraph 
(9) to read as follows: 
‘‘(9) The term ‘affiliation’, with respect to a re-
lationship between a mentor firm and a protege 
firm, means a relationship described under section 
121.103 of title 13, Code of Federal Regulations (or 
any successor regulation).’’; and 
(3) in subsection (f)(6)— 
(A) in subparagraph (B), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(D) women’s business centers described 
in section 29 of the Small Business Act (15 
U.S.C. 656).’’. 
SEC. 1832. IMPROVING COOPERATION BETWEEN THE MEN-
TOR-PROTEGE PROGRAMS OF THE SMALL 
BUSINESS ADMINISTRATION AND THE DE-
PARTMENT OF DEFENSE. 
Section 45(b)(4) of the Small Business Act (15 
U.S.C. 657r(b)(4)) is amended by striking subparagraph
992 
(A) and redesignating subparagraphs (B) and (C) as sub-
paragraphs (A) and (B), respectively. 
Subtitle E—Women’s Business 
Programs 
SEC. 1841. OFFICE OF WOMEN’S BUSINESS OWNERSHIP. 
Section 29(g) of the Small Business Act (15 U.S.C. 
656(g)) is amended— 
(1) in paragraph (2), by striking subparagraphs 
(B) and (C) and inserting the following: 
‘‘(B) RESPONSIBILITIES.—The responsibil-
ities of the Assistant Administrator shall be to 
administer the programs and services of the Of-
fice of Women’s Business Ownership. 
‘‘(C) DUTIES.—The Assistant Adminis-
trator shall perform the following functions 
with respect to the Office of Women’s Business 
Ownership: 
‘‘(i) Recommend the annual adminis-
trative and program budgets of the Office 
and eligible entities receiving a grant 
under the Women’s Business Center Pro-
gram. 
‘‘(ii) Review the annual budgets sub-
mitted by each eligible entity receiving a
993 
grant under the Women’s Business Center 
Program. 
‘‘(iii) Select applicants to receive 
grants to operate a women’s business cen-
ter after reviewing information required by 
this section, including the budget of each 
applicant. 
‘‘(iv) Collaborate with other Federal 
departments and agencies, State and local 
governments, not-for-profit organizations, 
and for-profit enterprises to maximize uti-
lization of taxpayer dollars and reduce (or 
eliminate) any duplication among the pro-
grams overseen by the Office of Women’s 
Business Ownership and those of other en-
tities that provide similar services to 
women entrepreneurs. 
‘‘(v) Maintain a clearinghouse to pro-
vide for the dissemination and exchange of 
information between women’s business cen-
ters. 
‘‘(vi) Serve as the vice chairperson of 
the Interagency Committee on Women’s 
Business Enterprise and as the liaison for
994 
the National Women’s Business Council.’’; 
and 
(2) by adding at the end the following: 
‘‘(3) MISSION.—The mission of the Office of 
Women’s Business Ownership shall be to assist 
women entrepreneurs to start, grow, and compete in 
global markets by providing quality support with ac-
cess to capital, access to markets, job creation, 
growth, and counseling by— 
‘‘(A) fostering participation of women en-
trepreneurs in the economy by overseeing a net-
work of women’s business centers throughout 
States and territories; 
‘‘(B) creating public-private partnerships 
to support women entrepreneurs and conduct 
outreach and education to startup and existing 
small business concerns owned and controlled 
by women; and 
‘‘(C) working with other programs over-
seen by the Administrator to ensure women are 
well-represented and being served and to iden-
tify gaps where participation by women could 
be increased. 
‘‘(4) ACCREDITATION PROGRAM.—
995 
‘‘(A) ESTABLISHMENT.—Not later than 
270 days after the date of enactment of this 
paragraph, the Administrator shall establish 
standards for an accreditation program for ac-
crediting eligible entities receiving a grant 
under this section. 
‘‘(B) TRANSITION PROVISION.—Before the 
date on which standards are established under 
subparagraph (A), the Administrator may not 
terminate a grant under this section absent evi-
dence of fraud or other criminal misconduct by 
the recipient. 
‘‘(C) CONTRACTING AUTHORITY.—The Ad-
ministrator may provide financial assistance, by 
contract or otherwise, to a relevant national 
women’s business center representative associa-
tion to provide assistance in establishing the 
standards required under subparagraph (A) or 
for carrying out an accreditation program pur-
suant to such standards.’’. 
SEC. 1842. WOMEN’S BUSINESS CENTER PROGRAM. 
(a) DEFINITIONS.—Section 29(a) of the Small Busi-
ness Act (15 U.S.C. 656(a)) is amended— 
(1) by striking paragraph (4);
996 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) the term ‘eligible entity’ means— 
‘‘(A) an organization described in section 
501(c) of the Internal Revenue Code of 1986 
and exempt from taxation under section 501(a) 
of such Code; 
‘‘(B) a State, regional, or local economic 
development organization, so long as the orga-
nization certifies that grant funds received 
under this section will not be commingled with 
other funds; 
‘‘(C) an institution of higher education, 
unless such institution is currently receiving a 
grant under section 21; 
‘‘(D) a development, credit, or finance cor-
poration chartered by a State, so long as the 
corporation certifies that grant funds received 
under this section will not be commingled with 
other funds; or 
‘‘(E) any combination of entities listed in 
subparagraphs (A) through (D);’’; and 
(4) by adding at the end the following:
997 
‘‘(5) the term ‘women’s business center’ means 
the location at which counseling and training on the 
management, operations (including manufacturing, 
services, and retail), access to capital, international 
trade, Government procurement opportunities, and 
any other matter is needed to start, maintain, or ex-
pand a small business concern owned and controlled 
by women.’’. 
(b) AUTHORITY.—Section 29(b) of the Small Busi-
ness Act (15 U.S.C. 656(b)) is amended— 
(1) by redesignating paragraphs (1), (2), and 
(3) as subparagraphs (A), (B), and (C), respectively, 
and adjusting the margins accordingly; 
(2) by striking ‘‘The Administration’’ and all 
that follows through ‘‘5-year projects’’ and inserting 
the following: 
‘‘(1) IN
GENERAL.—There is established a 
Women’s Business Center Program under which the 
Administrator may provide a grant to any eligible 
entity to operate one or more women’s business cen-
ters’’; 
(3) by striking ‘‘The projects shall’’ and insert-
ing the following: 
‘‘(2) USE OF FUNDS.—The women’s business 
centers shall be designed to provide counseling and
998 
training that meets the needs of women, especially 
socially or economically disadvantaged women, and 
shall’’; and 
(4) by adding at the end the following: 
‘‘(3) AMOUNT OF GRANTS.— 
‘‘(A) IN
GENERAL.—The amount of a 
grant provided under this subsection to an eligi-
ble entity per project year shall be not more 
than $185,000 (as such amount is annually ad-
justed by the Administrator to reflect the 
change in inflation). 
‘‘(B) ADDITIONAL GRANTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), with respect to an eligi-
ble entity that has received $185,000 in 
grants under this subsection in a project 
year, the Administrator may award an ad-
ditional grant under this subsection of up 
to $65,000 during such project year if the 
Administrator determines that the eligible 
entity— 
‘‘(I) agrees to obtain, after its 
application has been approved and no-
tice of award has been issued, cash 
contributions 
from 
non-Federal
999 
sources of 1 non-Federal dollar for 
each Federal dollar; 
‘‘(II) is in good standing with the 
Women’s Business Center Program; 
and 
‘‘(III) has met performance goals 
for the previous project year, if appli-
cable. 
‘‘(ii) 
LIMITATIONS.—The 
Adminis-
trator may only award additional grants 
under clause (i)— 
‘‘(I) during the 3rd and 4th 
quarters of the fiscal year; and 
‘‘(II) from unobligated amounts 
made available to the Administrator 
to carry out this section. 
‘‘(4) NOTICE AND COMMENT REQUIRED.—The 
Administrator may only make a change to the stand-
ards by which an eligible entity obtains or maintains 
grants under this section, the standards for accredi-
tation, or any other requirement for the operation of 
a women’s business center if the Administrator first 
provides notice and the opportunity for public com-
ment, as set forth in section 553(b) of title 5,
1000 
United States Code, without regard to any excep-
tions provided for under such section.’’. 
(c) CONDITIONS OF PARTICIPATION.—Section 29(c) 
of the Small Business Act (15 U.S.C. 656(c)) is amend-
ed— 
(1) in paragraph (1)— 
(A) by striking ‘‘the recipient organiza-
tion’’ and inserting ‘‘an eligible entity’’; and 
(B) by striking ‘‘financial assistance’’ and 
inserting ‘‘a grant’’; 
(2) in paragraph (3)— 
(A) by striking ‘‘financial assistance au-
thorized pursuant to this section may be made 
by grant, contract, or cooperative agreement 
and’’ and inserting ‘‘grants authorized pursuant 
to this section’’; and 
(B) in the second sentence, by striking ‘‘a 
recipient organization’’ and inserting ‘‘an eligi-
ble entity’’; 
(3) in paragraph (4)— 
(A) by striking ‘‘recipient of assistance’’ 
and inserting ‘‘eligible entity’’; 
(B) by striking ‘‘during any project, it 
shall not be eligible thereafter’’ and inserting 
‘‘during any project for 2 consecutive years, the
1001 
eligible entity shall not be eligible at any time 
after that 2-year period’’; 
(C) by striking ‘‘such organization’’ and 
inserting ‘‘the eligible entity’’; and 
(D) by striking ‘‘the recipient’’ and insert-
ing ‘‘the eligible entity’’; and 
(4) by adding at end the following: 
‘‘(5) SEPARATION OF PROJECT AND FUNDS.— 
An eligible entity shall— 
‘‘(A) carry out a project under this section 
separately from other projects, if any, of the eli-
gible entity; and 
‘‘(B) separately maintain and account for 
any grants under this section. 
‘‘(6) EXAMINATION OF ELIGIBLE ENTITIES.— 
‘‘(A) REQUIRED SITE VISIT.—Each appli-
cant, prior to receiving a grant under this sec-
tion, shall have a site visit by an employee of 
the Administration, in order to ensure that the 
applicant has sufficient resources to provide the 
services for which the grant is being provided. 
‘‘(B) ANNUAL REVIEW.—An employee of 
the Administration shall— 
‘‘(i) conduct an annual review of the 
compliance of each eligible entity receiving
1002 
a grant under this section with the grant 
agreement, including a financial examina-
tion; and 
‘‘(ii) provide such review to the eligi-
ble entity as required under subsection (l). 
‘‘(7) REMEDIATION OF PROBLEMS.— 
‘‘(A) PLAN OF ACTION.—If a review of an 
eligible entity under paragraph (6)(B) identifies 
any problems, the eligible entity shall, within 45 
calendar days of receiving such review, provide 
the Assistant Administrator with a plan of ac-
tion, including specific milestones, for cor-
recting such problems. 
‘‘(B) PLAN OF ACTION REVIEW BY THE AS-
SISTANT ADMINISTRATOR.—The Assistant Ad-
ministrator shall review each plan of action sub-
mitted under subparagraph (A) within 30 cal-
endar days of receiving such plan and— 
‘‘(i) if the Assistant Administrator de-
termines that such plan will bring the eligi-
ble entity into compliance with all the 
terms of the grant agreement, approve 
such plan; 
‘‘(ii) if the Assistant Administrator 
determines that such plan is inadequate to
1003 
remedy the problems identified in the an-
nual review to which the plan of action re-
lates, the Assistant Administrator shall set 
forth such reasons in writing and provide 
such determination to the eligible entity 
within 15 calendar days of such determina-
tion. 
‘‘(C) AMENDMENT TO PLAN OF ACTION.— 
An eligible entity receiving a determination 
under subparagraph (B)(ii) shall have 30 cal-
endar days from the receipt of the determina-
tion to amend the plan of action to satisfy the 
problems identified by the Assistant Adminis-
trator and resubmit such plan to the Assistant 
Administrator. 
‘‘(D) AMENDED PLAN REVIEW BY THE AS-
SISTANT ADMINISTRATOR.—Within 15 calendar 
days of the receipt of an amended plan of ac-
tion under subparagraph (C), the Assistant Ad-
ministrator shall either approve or reject such 
plan and provide such approval or rejection in 
writing to the eligible entity. 
‘‘(E) APPEAL
OF
ASSISTANT
ADMINIS-
TRATOR DETERMINATION.—
1004 
‘‘(i) IN
GENERAL.—If the Assistant 
Administrator rejects an amended plan 
under subparagraph (D), the eligible entity 
shall have the opportunity to appeal such 
decision to the Administrator, who may 
delegate such appeal to an appropriate of-
ficer of the Administration. 
‘‘(ii) 
OPPORTUNITY
FOR
EXPLA-
NATION.—Any appeal described under 
clause (i) shall provide an opportunity for 
the eligible entity to provide, in writing, an 
explanation of why the eligible entity’s plan 
remedies the problems identified in the an-
nual review. 
‘‘(iii) NOTICE OF DETERMINATION.— 
The determination of the appeal shall be 
provided to the eligible entity, in writing, 
within 15 calendar days from the eligible 
entity’s filing of the appeal. 
‘‘(iv) EFFECT OF FAILURE TO ACT.— 
If the Administrator fails to act on an ap-
peal made under this subparagraph within 
the 15 calendar day period specified under 
clause (iii), the eligible entity’s amended
1005 
plan of action submitted under subpara-
graph (C) shall be deemed to be approved. 
‘‘(8) TERMINATION OF GRANT.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall require that, if an eligible entity fails to 
comply with a plan of action approved by the 
Assistant 
Administrator 
under 
paragraph 
(7)(B)(i) or an amended plan of action ap-
proved by the Assistant Administrator under 
paragraph (7)(D) or approved on appeal under 
paragraph (7)(E), the Assistant Administrator 
shall terminate the grant provided to the eligi-
ble entity under this section. 
‘‘(B) APPEAL OF TERMINATION.—An eligi-
ble entity that has a grant terminated under 
subparagraph (A) shall have the opportunity to 
challenge the termination on the record and 
after an opportunity for a hearing. 
‘‘(C) FINAL AGENCY ACTION.—The deter-
mination made pursuant to subparagraph (B) 
shall be considered final agency action for the 
purposes of chapter 7, title 5, United States 
Code.’’. 
(d) SUBMISSION OF 5-YEAR PLAN.—Section 29(e) of 
the Small Business Act (15 U.S.C. 656(e)) is amended—
1006 
(1) by striking ‘‘applicant organization’’ and in-
serting ‘‘eligible entity’’; 
(2) by striking ‘‘a recipient organization’’ and 
inserting ‘‘an eligible entity’’; 
(3) by striking ‘‘financial assistance’’ and in-
serting ‘‘grants’’; and 
(4) by striking ‘‘site’’. 
(e) APPLICATIONS
AND
CRITERIA
FOR
INITIAL 
GRANT.—Subsection (f) of section 29 of the Small Busi-
ness Act (15 U.S.C. 656) is amended to read as follows: 
‘‘(f) APPLICATIONS
AND CRITERIA
FOR INITIAL 
GRANT.— 
‘‘(1) APPLICATION.—Each eligible entity desir-
ing a grant under subsection (b) shall submit to the 
Administrator an application that contains— 
‘‘(A) a certification that the eligible enti-
ty— 
‘‘(i) has designated an executive direc-
tor or program manager, who may be com-
pensated using grant funds under sub-
section (b) or other sources, to manage the 
women’s business center for which a grant 
under subsection (b) is sought; 
‘‘(ii) meets the accounting and report-
ing requirements established by the Direc-
1007 
tor of the Office of Management and 
Budget; 
‘‘(B) information demonstrating that the 
eligible entity has the ability and resources to 
meet the needs of the market to be served by 
the women’s business center, including the abil-
ity to obtain the non-Federal contribution re-
quired under subsection (c); 
‘‘(C) information relating to the assistance 
to be provided by the women’s business center 
in the area in which the women’s business cen-
ter is located; 
‘‘(D) information demonstrating the expe-
rience and effectiveness of the eligible entity 
in— 
‘‘(i) conducting the services described 
under subsection (a)(5); 
‘‘(ii) providing training and services to 
a representative number of women who are 
socially or economically disadvantaged; and 
‘‘(iii) working with resource partners 
of the Administration and other entities, 
such as universities; and 
‘‘(E) a 5-year plan that describes the abil-
ity of the eligible entity to provide the services
1008 
described under subsection (a)(3), including to 
a representative number of women who are so-
cially or economically disadvantaged. 
‘‘(2) REVIEW AND APPROVAL OF APPLICATIONS 
FOR INITIAL GRANTS.— 
‘‘(A) REVIEW AND SELECTION OF ELIGI-
BLE ENTITIES.— 
‘‘(i) IN GENERAL.—The Administrator 
shall review applications to determine 
whether the applicant can meet obligations 
to perform the activities required by a 
grant under this section, including— 
‘‘(I) the experience of the appli-
cant in conducting activities required 
by this section; 
‘‘(II) the amount of time needed 
for the applicant to commence oper-
ations should it be awarded a grant; 
‘‘(III) the capacity of the appli-
cant to meet the accreditation stand-
ards established by the Administrator 
in a timely manner; 
‘‘(IV) the ability of the applicant 
to sustain operations for more than 5 
years (including its ability to obtain
1009 
sufficient non-Federal funds for that 
period); 
‘‘(V) the location of the women’s 
business center and its proximity to 
other grant recipients under this sec-
tion; and 
‘‘(VI) the population density of 
the area to be served by the women’s 
business center. 
‘‘(ii) SELECTION CRITERIA.— 
‘‘(I) GUIDANCE.—The Adminis-
trator shall issue guidance (after pro-
viding an opportunity for notice and 
comment) to specify the criteria for 
review and selection of applicants 
under this subsection. 
‘‘(II) MODIFICATIONS
PROHIB-
ITED AFTER ANNOUNCEMENT.—With 
respect to a public announcement of 
any opportunity to be awarded a 
grant under this section made by the 
Administrator pursuant to subsection 
(l)(1), the Administrator may not 
modify guidance issued pursuant to 
subclause (I) with respect to such op-
1010 
portunity unless required to do so by 
an Act of Congress or an order of a 
Federal court. 
‘‘(III) 
RULE
OF
CONSTRUC-
TION.—Nothing in this clause may be 
construed as prohibiting the Adminis-
trator from modifying the guidance 
issued pursuant to subclause (I) (after 
providing an opportunity for notice 
and comment) as such guidance ap-
plies to an opportunity to be awarded 
a grant under this section that the 
Administrator has not yet publicly an-
nounced pursuant to subsection (l)(1). 
‘‘(B) RECORD RETENTION.— 
‘‘(i) IN GENERAL.—The Administrator 
shall maintain a copy of each application 
submitted under this subsection for not 
less than 5 years. 
‘‘(ii) PAPERWORK
REDUCTION.—The 
Administrator shall take steps to reduce, 
to the maximum extent practicable, the pa-
perwork burden associated with carrying 
out clause (i).’’.
1011 
(f) NOTIFICATION
REQUIREMENTS
UNDER
THE 
WOMEN’S BUSINESS CENTER PROGRAM.—Section 29 of 
the Small Business Act (15 U.S.C. 656) is amended by 
inserting after subsection (k) the following: 
‘‘(l) NOTIFICATION REQUIREMENTS UNDER
THE 
WOMEN’S BUSINESS CENTER PROGRAM.—The Adminis-
trator shall provide— 
‘‘(1) a public announcement of any opportunity 
to be awarded grants under this section, and such 
announcement shall include the standards by which 
such award will be made, including the guidance 
issued pursuant to subsection (f)(2)(A)(ii); 
‘‘(2) the opportunity for any applicant for a 
grant under this section that failed to obtain such 
a grant a debriefing with the Assistant Adminis-
trator to review the reasons for the applicant’s fail-
ure; and 
‘‘(3) with respect to any site visit or evaluation 
of an eligible entity receiving a grant under this sec-
tion that is carried out by an officer or employee of 
the Administration (other than the Inspector Gen-
eral), a copy of the site visit report or evaluation, as 
applicable, within 30 calendar days of the completion 
of such vision or evaluation.’’.
1012 
(g) CONTINUED FUNDING FOR CENTERS.—Section 
29(m) of the Small Business Act (15 U.S.C. 656(m)) is 
amended— 
(1) by striking paragraph (3) and inserting the 
following: 
‘‘(3) APPLICATION
AND
APPROVAL
FOR
CON-
TINUATION GRANTS.— 
‘‘(A) SOLICITATION
OF
APPLICATIONS.— 
The Administrator shall solicit applications and 
award continuation grants under this subsection 
for the first fiscal year beginning after the date 
of enactment of this paragraph, and every third 
fiscal year thereafter. 
‘‘(B) CONTENTS OF APPLICATION.—Each 
eligible entity desiring a grant under this sub-
section shall submit to the Administrator an ap-
plication that contains— 
‘‘(i) a certification that the appli-
cant— 
‘‘(I) is an eligible entity; 
‘‘(II) has designated an executive 
director or program manager to man-
age the women’s business center oper-
ated by the applicant; and
1013 
‘‘(III) as a condition of receiving 
a 
grant 
under 
this 
subsection, 
agrees— 
‘‘(aa) to receive a site visit 
as part of the final selection 
process, at the discretion of the 
Administrator; and 
‘‘(bb) to remedy any prob-
lem identified pursuant to the 
site visit under item (aa); 
‘‘(ii) information demonstrating that 
the applicant has the ability and resources 
to meet the needs of the market to be 
served by the women’s business center for 
which a grant under this subsection is 
sought, including the ability to obtain the 
non-Federal contribution required under 
paragraph (4)(C); 
‘‘(iii) information relating to assist-
ance to be provided by the women’s busi-
ness center in the geographic area served 
by the women’s business center for which 
a grant under this subsection is sought; 
‘‘(iv) information demonstrating that 
the applicant has worked with resource
1014 
partners of the Administration and other 
entities; 
‘‘(v) a 3-year plan that describes the 
services provided by the women’s business 
center for which a grant under this sub-
section is sought— 
‘‘(I) to serve women who are 
business owners or potential business 
owners by conducting training and 
counseling activities; and 
‘‘(II) to provide training and 
services to a representative number of 
women who are socially or economi-
cally disadvantaged; and 
‘‘(vi) any additional information that 
the Administrator may reasonably require. 
‘‘(C) REVIEW AND APPROVAL OF APPLICA-
TIONS FOR GRANTS.— 
‘‘(i) IN
GENERAL.—The Adminis-
trator— 
‘‘(I) shall review each application 
submitted under subparagraph (B), 
based on the information described in 
such subparagraph and the criteria
1015 
set forth under clause (ii) of this sub-
paragraph; and 
‘‘(II) as part of the final selection 
process, may, at the discretion of the 
Administrator, conduct a site visit to 
each women’s business center for 
which a grant under this subsection is 
sought, in particular to evaluate the 
women’s business center using the se-
lection criteria described in clause 
(ii)(II). 
‘‘(ii) SELECTION CRITERIA.— 
‘‘(I) IN GENERAL.—The Admin-
istrator shall evaluate applicants for 
grants under this subsection in ac-
cordance with selection criteria that 
are— 
‘‘(aa) established before the 
date on which applicants are re-
quired to submit the applications; 
‘‘(bb) stated in terms of rel-
ative importance; and 
‘‘(cc) publicly available and 
stated in each solicitation for ap-
plications for grants under this
1016 
subsection made by the Adminis-
trator. 
‘‘(II) REQUIRED CRITERIA.—The 
selection criteria for a grant under 
this subsection shall include— 
‘‘(aa) the total number of 
entrepreneurs served by the ap-
plicant; 
‘‘(bb) the total number of 
new startup companies assisted 
by the applicant; 
‘‘(cc) the percentage of cli-
ents of the applicant that are so-
cially or economically disadvan-
taged; 
‘‘(dd) the percentage of indi-
viduals in the community served 
by the applicant who are socially 
or economically disadvantaged; 
‘‘(ee) the successful accredi-
tation of the applicant under the 
accreditation program developed 
under subsection (g)(5); and
1017 
‘‘(ff) any additional criteria 
that the Administrator may rea-
sonably require. 
‘‘(iii) CONDITIONS
FOR
CONTINUED 
FUNDING.—In determining whether to 
make a grant under this subsection, the 
Administrator— 
‘‘(I) shall consider the results of 
the most recent evaluation of the 
women’s business center for which a 
grant under this subsection is sought, 
and, to a lesser extent, previous eval-
uations; and 
‘‘(II) may withhold a grant under 
this subsection, if the Administrator 
determines that the applicant has 
failed to provide the information re-
quired to be provided under this para-
graph, or the information provided by 
the applicant is inadequate. 
‘‘(D) NOTIFICATION.—Not later than 60 
calendar days after the date of each deadline to 
submit applications under this paragraph, the 
Administrator shall approve or deny each sub-
1018 
mitted application and notify the applicant for 
each such application of the approval or denial. 
‘‘(E) RECORD RETENTION.— 
‘‘(i) IN GENERAL.—The Administrator 
shall maintain a copy of each application 
submitted under this paragraph for not 
less than 5 years. 
‘‘(ii) PAPERWORK
REDUCTION.—The 
Administrator shall take steps to reduce, 
to the maximum extent practicable, the pa-
perwork burden associated with carrying 
out clause (i).’’; and 
(2) by striking paragraph (5) and inserting the 
following: 
‘‘(5) AWARD TO PREVIOUS RECIPIENTS.—There 
shall be no limitation on the number of times the 
Administrator may award a grant to an applicant 
under this subsection.’’. 
(h) TECHNICAL AND CONFORMING AMENDMENTS.— 
Section 29 of the Small Business Act (15 U.S.C. 656) is 
amended— 
(1) in subsection (h)(2), by striking ‘‘to award 
a contract (as a sustainability grant) under sub-
section (l) or’’;
1019 
(2) in subsection (j)(1), by striking ‘‘The Ad-
ministration’’ and inserting ‘‘Not later than Novem-
ber 1 of each year, the Administrator’’; 
(3) in subsection (k)— 
(A) by striking paragraphs (1) and (4); 
(B) by inserting before paragraph (2) the 
following: 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to the Administration to carry out this 
section, 
to 
remain 
available 
until 
expended, 
$21,750,000 for each of fiscal years 2017 through 
2020.’’; and 
(C) in paragraph (2), by striking subpara-
graph (B) and inserting the following: 
‘‘(B) EXCEPTIONS.—Of the amount made 
available under this subsection for a fiscal year, 
the following amounts shall be available for se-
lection panel costs, costs associated with main-
taining an accreditation program, and post- 
award conference costs: 
‘‘(i) For the first fiscal year beginning 
after the date of the enactment of this sub-
paragraph, 2.65 percent. 
‘‘(ii) For the second fiscal year begin-
ning after the date of the enactment of
1020 
this subparagraph and each fiscal year 
thereafter through fiscal year 2020, 2.5 
percent.’’; and 
(4) in subsection (m)— 
(A) in paragraph (2), by striking ‘‘sub-
section (b) or (l)’’ and inserting ‘‘this sub-
section or subsection (b)’’; and 
(B) in paragraph (4)(D), by striking ‘‘or 
subsection (l)’’. 
(i) EFFECT ON EXISTING GRANTS.— 
(1) TERMS AND CONDITIONS.—A nonprofit or-
ganization receiving a grant under section 29(m) of 
the Small Business Act (15 U.S.C. 656(m)), as in 
effect on the day before the date of enactment of 
this title, shall continue to receive the grant under 
the terms and conditions in effect for the grant on 
the day before the date of enactment of this title, ex-
cept that the nonprofit organization may not apply 
for a continuation of the grant under section 
29(m)(5) of the Small Business Act (15 U.S.C. 
656(m)(5)), as in effect on the day before the date 
of enactment of this title. 
(2) LENGTH OF CONTINUATION GRANT.—The 
Administrator of the Small Business Administration 
may award a grant under section 29(m) of the Small
1021 
Business Act to a nonprofit organization receiving a 
grant under section 29(m) of the Small Business 
Act (15 U.S.C. 656(m)), as in effect on the day be-
fore the date of enactment of this title, for the pe-
riod— 
(A) beginning on the day after the last day 
of the grant agreement under such section 
29(m); and 
(B) ending at the end of the third fiscal 
year beginning after the date of enactment of 
this title. 
SEC. 1843. MATCHING REQUIREMENTS UNDER WOMEN’S 
BUSINESS CENTER PROGRAM. 
Section 29(c) of the Small Business Act (15 U.S.C. 
656(c)), as amended by this Act, is amended— 
(1) in paragraph (1), by striking ‘‘As a condi-
tion’’ and inserting ‘‘Subject to paragraph (6), as a 
condition’’; and 
(2) by adding at the end the following: 
‘‘(9) WAIVER OF NON-FEDERAL SHARE.— 
‘‘(A) IN GENERAL.—Upon request by an 
eligible entity, and in accordance with this para-
graph, the Administrator may waive, in whole 
or in part, the requirement to obtain non-Fed-
eral funds under this subsection for counseling
1022 
and training activities of the eligible entity car-
ried out using a grant under this section for a 
fiscal year. The Administrator may not waive 
the requirement for an eligible entity to obtain 
non-Federal funds under this paragraph for 
more than a total of 2 consecutive fiscal years. 
‘‘(B) CONSIDERATIONS.—In determining 
whether to waive the requirement to obtain 
non-Federal funds under this paragraph, the 
Administrator shall consider— 
‘‘(i) the economic conditions affecting 
the eligible entity; 
‘‘(ii) the impact a waiver under this 
paragraph would have on the credibility of 
the Women’s Business Center Program 
under this section; 
‘‘(iii) the demonstrated ability of the 
eligible entity to raise non-Federal funds; 
and 
‘‘(iv) the performance of the eligible 
entity. 
‘‘(C) 
LIMITATION.—The 
Administrator 
may not waive the requirement to obtain non- 
Federal funds under this paragraph if granting
1023 
the waiver would undermine the credibility of 
the Women’s Business Center Program. 
‘‘(10) 
SOLICITATION.—Notwithstanding 
any 
other provision of law, eligible entity may— 
‘‘(A) solicit cash and in-kind contributions 
from private individuals and entities to be used 
to carry out the activities of the eligible entity 
under the project conducted under this section; 
and 
‘‘(B) use amounts made available by the 
Administrator under this section for the cost of 
such solicitation and management of the con-
tributions received. 
‘‘(11) EXCESS
NON-FEDERAL
DOLLARS.—The 
amount of non-Federal dollars obtained by an eligi-
ble entity that is above the amount that is required 
to be obtained by the eligible entity under this sub-
section shall not be subject to the requirements of 
part 200 of title 2, Code of Federal Regulations, or 
any successor thereto, if such amount of non-Fed-
eral dollars— 
‘‘(A) is not used as matching funds for 
purposes of implementing the Women’s Busi-
ness Center Program; and
1024 
‘‘(B) was not obtained using funds from 
the Women’s Business Center Program.’’. 
Subtitle F—SCORE Program 
SEC. 1851. SCORE REAUTHORIZATION. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended— 
(1) by redesignating subsection (j) as sub-
section (f); and 
(2) by adding at the end the following: 
‘‘(g) SCORE PROGRAM.—There are authorized to be 
appropriated to the Administrator to carry out the 
SCORE program authorized by section 8(b)(1) such sums 
as are necessary for the Administrator to make grants or 
enter into cooperative agreements in a total amount that 
does not exceed $10,500,000 in each of fiscal years 2017 
and 2018.’’. 
SEC. 1852. SCORE PROGRAM. 
Section 8 of the Small Business Act (15 U.S.C. 637) 
is amended— 
(1) in subsection (b)(1)(B), by striking ‘‘a Serv-
ice Corps of Retired Executives (SCORE)’’ and in-
serting ‘‘the SCORE program described in sub-
section (c)’’; and 
(2) by striking subsection (c) and inserting the 
following:
1025 
‘‘(c) SCORE PROGRAM.— 
‘‘(1) DEFINITION.—In this subsection: 
‘‘(A) SCORE 
ASSOCIATION.—The term 
‘SCORE Association’ means the Service Corps 
of Retired Executives Association or any suc-
cessor or other organization who receives a 
grant from the Administrator to operate the 
SCORE program under paragraph (2)(A). 
‘‘(B) 
SCORE 
PROGRAM.—The 
term 
‘SCORE program’ means the SCORE program 
authorized by subsection (b)(1)(B). 
‘‘(2) MANAGEMENT AND VOLUNTEERS.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall provide a grant to the SCORE Association 
to manage the SCORE program. 
‘‘(B) VOLUNTEERS.—A volunteer partici-
pating in the SCORE program shall— 
‘‘(i) based on the business experience 
and knowledge of the volunteer— 
‘‘(I) provide at no cost to individ-
uals who own, or aspire to own, small 
business concerns personal counseling, 
mentoring, and coaching relating to 
the process of starting, expanding,
1026 
managing, buying, and selling a busi-
ness; and 
‘‘(II) facilitate low-cost education 
workshops for individuals who own, or 
aspire to own, small business con-
cerns; and 
‘‘(ii) as appropriate, use tools, re-
sources, and expertise of other organiza-
tions to carry out the SCORE program. 
‘‘(3) PLANS AND GOALS.—The Administrator, 
in consultation with the SCORE Association, shall 
ensure that the SCORE program and each chapter 
of the SCORE program develop and implement 
plans and goals to more effectively and efficiently 
provide services to individuals in rural areas, eco-
nomically disadvantaged communities, and other tra-
ditionally underserved communities, including plans 
for electronic initiatives, web-based initiatives, chap-
ter expansion, partnerships, and the development of 
new skills by volunteers participating in the SCORE 
program. 
‘‘(4) ANNUAL REPORT.—The SCORE Associa-
tion shall submit to the Administrator an annual re-
port that contains—
1027 
‘‘(A) the number of individuals counseled 
or trained under the SCORE program; 
‘‘(B) the number of hours of counseling 
provided under the SCORE program; and 
‘‘(C) to the extent possible— 
‘‘(i) the number of small business con-
cerns formed with assistance from the 
SCORE program; 
‘‘(ii) the number of small business 
concerns expanded with assistance from 
the SCORE program; and 
‘‘(iii) the number of jobs created with 
assistance from the SCORE program. 
‘‘(5) PRIVACY REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Neither the Adminis-
trator nor the SCORE Association may disclose 
the name, address, or telephone number of any 
individual or small business concern receiving 
assistance from the SCORE Association with-
out the consent of such individual or small busi-
ness concern, unless— 
‘‘(i) the Administrator is ordered to 
make such a disclosure by a court in any 
civil or criminal enforcement action initi-
ated by a Federal or State agency; or
1028 
‘‘(ii) the Administrator determines 
such a disclosure to be necessary for the 
purpose of conducting a financial audit of 
the SCORE program, in which case disclo-
sure shall be limited to the information 
necessary for the audit. 
‘‘(B) ADMINISTRATOR USE OF INFORMA-
TION.—This paragraph shall not— 
‘‘(i) restrict the access of the Adminis-
trator to program activity data; or 
‘‘(ii) prevent the Administrator from 
using client information to conduct client 
surveys. 
‘‘(C) STANDARDS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall, after the opportunity for notice and 
comment, establish standards for— 
‘‘(I) disclosures with respect to 
financial audits under subparagraph 
(A)(ii); and 
‘‘(II) conducting client surveys, 
including standards for oversight of 
the surveys and for dissemination and 
use of client information.
1029 
‘‘(ii) MAXIMUM
PRIVACY
PROTEC-
TION.—The standards issued under this 
subparagraph shall, to the extent prac-
ticable, provide for the maximum amount 
of privacy protection.’’. 
SEC. 1853. ONLINE COMPONENT. 
(a) IN GENERAL.—Section 8(c) of the Small Busi-
ness Act (15 U.S.C. 637(c)), as amended by section 1852, 
is further amended by adding at the end the following: 
‘‘(6) ONLINE
COMPONENT.—In carrying out 
this subsection, the SCORE Association shall make 
use of online counseling, including by developing and 
implementing webinars and an electronic mentoring 
platform to expand access to services provided under 
this subsection and to further support entre-
preneurs.’’. 
(b) ONLINE COMPONENT REPORT.— 
(1) IN GENERAL.—At the end of fiscal year 
2018, the SCORE Association shall issue a report to 
the Committee on Small Business of the House of 
Representatives and the Committee on Small Busi-
ness and Entrepreneurship of the Senate on the ef-
fectiveness of the online counseling and webinars re-
quired as part of the SCORE program, including—
1030 
(A) how the SCORE Association deter-
mines electronic mentoring and webinar needs, 
develops training for electronic mentoring, es-
tablishes webinar criteria curricula, and evalu-
ates webinar and electronic mentoring results; 
(B) describing the internal controls that 
are used and a summary of the topics covered 
by the webinars; and 
(C) performance metrics, including the 
number of small business concerns counseled 
by, the number of small business concerns cre-
ated by, the number of jobs created and re-
tained by, and the funding amounts directed to-
wards such online counseling and webinars. 
(2) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘SCORE Association’’ and 
‘‘SCORE program’’ have the meaning given those 
terms, respectively, under section 8(c)(1) of the 
Small Business Act (15 U.S.C. 637(c)(1)). 
SEC. 1854. STUDY AND REPORT ON THE FUTURE ROLE OF 
THE SCORE PROGRAM. 
(a) STUDY.—The SCORE Association shall carry out 
a study on the future role of the SCORE program and 
develop a strategic plan for how the SCORE program will 
evolve to meet the needs of small business concerns and
1031 
potential future small business concerns over the course 
of the 5 years following the date of enactment of this Act, 
with markers and specific objectives for year 1, year 3, 
and year 5. 
(b) REPORT.—Not later than the end of the 6-month 
period beginning on the date of the enactment of this Act, 
the SCORE Association shall issue a report to the Com-
mittee on Small Business of the House of Representatives 
and the Committee on Small Business and Entrepreneur-
ship of the Senate containing— 
(1) all findings and determination made in car-
rying out the study required under subsection (a); 
(2) the strategic plan developed under sub-
section (a); 
(3) an explanation of how the SCORE Associa-
tion plans to achieve the strategic plan, assuming 
both stagnant and increased funding levels. 
(c) DEFINITIONS.—For purposes of this section, the 
terms ‘‘SCORE Association’’ and ‘‘SCORE program’’ 
have the meaning given those terms, respectively, under 
section 8(c)(1) of the Small Business Act (15 U.S.C. 
637(c)(1)). 
SEC. 1855. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) SMALL BUSINESS ACT.—The Small Business Act 
(15 U.S.C. 631 et seq.) is amended—
1032 
(1) in section 7(m)(3)(A)(i)(VIII) (15 U.S.C. 
636(m)(3)(A)(i)(VIII)), by striking ‘‘Service Corps 
of Retired Executives’’ and inserting ‘‘SCORE pro-
gram’’; and 
(2) in section 22 (15 U.S.C. 649)— 
(A) in subsection (b)— 
(i) in paragraph (1), by striking 
‘‘Service Corps of Retired Executives’’ and 
inserting ‘‘SCORE program’’; and 
(ii) in paragraph (3), by striking 
‘‘Service Corps of Retired Executives’’ and 
inserting ‘‘SCORE program’’; and 
(B) in subsection (c)(12), by striking 
‘‘Service Corps of Retired Executives’’ and in-
serting ‘‘SCORE program’’. 
(b) OTHER LAWS.— 
(1) Section 621 of the Children’s Health Insur-
ance Program Reauthorization Act of 2009 (15 
U.S.C. 657p) is amended— 
(A) in subsection (a), by striking para-
graph (4) and inserting the following: 
‘‘(4) the term ‘SCORE program’ means the 
SCORE program authorized by section 8(b)(1)(B) 
of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
637(b)(1)(B));’’; and
1033 
(B) in subsection (b)(4)(A)(iv), by striking 
‘‘Service Corps of Retired Executives’’ and in-
serting ‘‘SCORE program’’. 
(2) Section 337(d)(2)(A) of the Energy Policy 
and Conservation Act (42 U.S.C. 6307(d)(2)(A)) is 
amended by striking ‘‘Service Corps of Retired Ex-
ecutives (SCORE)’’ and inserting ‘‘SCORE pro-
gram’’. 
Subtitle G—Miscellaneous 
Provisions 
SEC. 1861. IMPROVING EDUCATION ON SMALL BUSINESS 
REGULATIONS. 
(a) REGULATORY CHANGES AND TRAINING MATE-
RIALS.—Section 15 of the Small Business Act (15 U.S.C. 
644), as amended by this Act, is further amended by add-
ing at the end the following new subsection: 
‘‘(u) REGULATORY CHANGES AND TRAINING MATE-
RIALS.—Not less than annually, the Administrator shall 
provide to the Defense Acquisition University (established 
under section 1746 of title 10, United States Code), the 
Federal Acquisition Institute (established under section 
1201 of title 41, United States Code), the individual re-
sponsible for mandatory training and education of the ac-
quisition workforce of each agency (described under sec-
tion 1703(f)(1)(C) of title 41, United States Code), small
1034 
business development centers, and entities participating in 
the Procurement Technical Assistance Cooperative Agree-
ment Program under chapter 142 of title 10, United 
States Code— 
‘‘(1) a list of all changes made in the prior year 
to regulations promulgated— 
‘‘(A) by the Administrator that affect Fed-
eral acquisition; and 
‘‘(B) by the Federal Acquisition Council 
that implement changes to this Act; and 
‘‘(2) any materials the Administrator has devel-
oped to explain, train, or assist Federal agencies or 
departments or small business concerns to comply 
with the regulations specified in paragraph (1).’’. 
(b) TRAINING TO BE UPDATED.—Upon receipt of in-
formation from the Administrator of the Small Business 
Administration pursuant to section 15(u) of the Small 
Business Act, the Defense Acquisition University (as 
under section 1746 of title 10, United States Code) and 
the Federal Acquisition Institute (established under sec-
tion 1201 of title 41, United States Code) shall periodi-
cally update the training provided to the acquisition work-
force.
1035 
SEC. 1862. PROTECTING TASK ORDER COMPETITION. 
Section 4106(f) of title 41, United States Code, is 
amended by striking paragraph (3). 
SEC. 1863. IMPROVEMENTS TO SIZE STANDARDS FOR 
SMALL AGRICULTURAL PRODUCERS. 
(a) AMENDMENT TO DEFINITION OF AGRICULTURAL 
ENTERPRISES.—Paragraph (1) of section 18(b) of the 
Small Business Act (15 U.S.C. 647(b)(1)) is amended by 
striking ‘‘businesses’’ and inserting ‘‘small business con-
cerns’’. 
(b) EQUAL TREATMENT OF SMALL FARMS.—Para-
graph (1) of section 3(a) of the Small Business Act (15 
U.S.C. 632(a)(1)) is amended by striking ‘‘operation: Pro-
vided,’’ and all that follows through the period at the end 
and inserting ‘‘operation.’’. 
(c) UPDATED SIZE STANDARDS.—Size standards es-
tablished under subsection (a) are subject to the rolling 
review procedures established under section 1344(a) of the 
Small Business Jobs Act of 2010 (15 U.S.C. 632 note). 
SEC. 1864. UNIFORMITY IN SERVICE-DISABLED VETERAN 
DEFINITIONS. 
(a) SMALL BUSINESS DEFINITION OF SMALL BUSI-
NESS CONCERN CONSOLIDATED.—Section 3(q) of the 
Small Business Act (15 U.S.C. 632(q)) is amended— 
(1) by amending paragraph (2) to read as fol-
lows:
1036 
‘‘(2) SMALL BUSINESS CONCERN OWNED AND 
CONTROLLED
BY
SERVICE-DISABLED
VETERANS.— 
The term ‘small business concern owned and con-
trolled by service-disabled veterans’ means any of 
the following: 
‘‘(A) A small business concern— 
‘‘(i) not less than 51 percent of which 
is owned by one or more service-disabled 
veterans or, in the case of any publicly 
owned business, not less than 51 percent 
of the stock (not including any stock 
owned by an ESOP) of which is owned by 
one or more service-disabled veterans; and 
‘‘(ii) the management and daily busi-
ness operations of which are controlled by 
one or more service-disabled veterans or, in 
the case of a veteran with permanent and 
severe disability, the spouse or permanent 
caregiver of such veteran. 
‘‘(B) A small business concern— 
‘‘(i) not less than 51 percent of which 
is owned by one or more service-disabled 
veterans with a disability that is rated by 
the Secretary of Veterans Affairs as a per-
manent and total disability who are unable
1037 
to manage the daily business operations of 
such concern; or 
‘‘(ii) in the case of a publicly owned 
business, not less than 51 percent of the 
stock (not including any stock owned by an 
ESOP) of which is owned by one or more 
such veterans. 
‘‘(C)(i) During the time period described in 
clause (ii), a small business concern that was a 
small business concern described in subpara-
graph (A) or (B) immediately prior to the death 
of a service-disabled veteran who was the owner 
of the concern, the death of whom causes the 
concern to be less than 51 percent owned by 
one or more service-disabled veterans, if— 
‘‘(I) the surviving spouse of the de-
ceased veteran acquires such veteran’s 
ownership interest in such concern; 
‘‘(II) such veteran had a service-con-
nected disability (as defined in section 
101(16) of title 38, United States Code) 
rated as 100 percent disabling under the 
laws administered by the Secretary of Vet-
erans Affairs or such veteran died as a re-
sult of a service-connected disability; and
1038 
‘‘(III) immediately prior to the death 
of such veteran, and during the period de-
scribed in clause (ii), the small business 
concern is included in the database de-
scribed in section 8127(f) of title 38, 
United States Code. 
‘‘(ii) The time period described in this 
clause is the time period beginning on the date 
of the veteran’s death and ending on the earlier 
of— 
‘‘(I) the date on which the surviving 
spouse remarries; 
‘‘(II) the date on which the surviving 
spouse relinquishes an ownership interest 
in the small business concern; or 
‘‘(III) the date that is 10 years after 
the date of the death of the veteran.’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(6) ESOP.—The term ‘ESOP’ has the mean-
ing given the term ‘employee stock ownership plan’ 
in section 4975(e)(7) of the Internal Revenue Code 
of 1986 (26 U.S.C. 4975(e)(7)).
1039 
‘‘(7) SURVIVING SPOUSE.—The term ‘surviving 
spouse’ has the meaning given such term in section 
101(3) of title 38, United States Code.’’. 
(b) VETERANS AFFAIRS DEFINITION
OF SMALL 
BUSINESS CONCERN CONSOLIDATED.— 
(1) IN
GENERAL.—Section 8127 of title 38, 
United States Code, is amended— 
(A) by striking subsection (h) and redesig-
nating subsections (i) through (l) as subsections 
(h) through (k), respectively; and 
(B) in subsection (k), as so redesignated— 
(i) by amending paragraph (2) to read 
as follows: 
‘‘(2) The term ‘small business concern owned 
and controlled by veterans’ has the meaning given 
that term under section 3(q)(3) of the Small Busi-
ness Act (15 U.S.C. 632(q)(3)).’’; and 
(ii) by adding at the end the following 
new paragraph: 
‘‘(3) The term ‘small business concern owned 
and controlled by veterans with service-connected 
disabilities’ has the meaning given the term ‘small 
business concern owned and controlled by service- 
disabled veterans’ under section 3(q)(2) of the Small 
Business Act (15 U.S.C. 632(q)(2)).’’.
1040 
(2) CONFORMING AMENDMENTS.—Such section 
is further amended— 
(A) in subsection (b), by inserting ‘‘or a 
small business concern owned and controlled by 
veterans with service-connected disabilities’’ 
after ‘‘a small business concern owned and con-
trolled by veterans’’; 
(B) in subsection (c), by inserting ‘‘or a 
small business concern owned and controlled by 
veterans with service-connected disabilities’’ 
after ‘‘a small business concern owned and con-
trolled by veterans’’; 
(C) in subsection (d) by inserting ‘‘or small 
business concerns owned and controlled by vet-
erans with service-connected disabilities’’ after 
‘‘small business concerns owned and controlled 
by veterans’’ both places it appears; and 
(D) in subsection (f)(1), by inserting ‘‘, 
small business concerns owned and controlled 
by veterans with service-connected disabilities,’’ 
after ‘‘small business concerns owned and con-
trolled by veterans’’. 
(c) TECHNICAL CORRECTION.—Section 8(d)(3) of the 
Small Business Act (15 U.S.C. 637(d)(3)), is amended by 
adding at the end the following new subparagraph:
1041 
‘‘(H) In this contract, the term ‘small business 
concern owned and controlled by service-disabled 
veterans’ has the meaning given that term in section 
3(q).’’. 
(d) REGULATIONS RELATING TO DATABASE OF THE 
SECRETARY OF VETERANS AFFAIRS.— 
(1) REQUIREMENT
TO
USE
CERTAIN
SMALL 
BUSINESS ADMINISTRATION REGULATIONS.—Section 
8127(f)(4) of title 38, United States Code, is 
amended by striking ‘‘verified’’ and inserting 
‘‘verified, using regulations issued by the Adminis-
trator of the Small Business Administration with re-
spect to the status of the concern as a small busi-
ness concern and the ownership and control of such 
concern,’’. 
(2) PROHIBITION ON SECRETARY OF VETERANS 
AFFAIRS ISSUING CERTAIN REGULATIONS.—Section 
8127(f) of title 38, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(7) The Secretary may not issue regulations related 
to the status of a concern as a small business concern and 
the ownership and control of such small business con-
cern.’’. 
(e) DELAYED EFFECTIVE DATE.—The amendments 
made by subsections (a), (b), (c), and (d) shall take effect