Defense and the congressional defense committees a writ-
ten opinion on the matters.
‘‘(d) NON-MAJOR SYSTEMS.—Operational testing of
a new system other than a major system may not be con-
ducted until the head of the operational test and evalua-
tion agency of the military department concerned deter-
mines the quantity of articles of the system that are to
be procured for operational testing.
‘‘(e) IMPARTIALITY OF CONTRACTOR TESTING PER-
SONNEL.—No person employed by the contractor under
a program for the acquisition of a major system may be
involved in the conduct of the operational test and evalua-
tion necessary for the program to proceed beyond low-rate
production in accordance with subsection (b). The limita-
tion in the preceding sentence does not apply to the extent
that the Secretary of Defense plans for persons employed
by that contractor to be involved in the operation, mainte-
nance, and support of the system when the system is de-
ployed in combat.
‘‘(f) IMPARTIAL CONTRACTED ADVISORY AND AS-
SISTANCE SERVICES.—(1) The Director may not contract
with any person for advisory and assistance services with
regard to the test and evaluation of a major system if that
person participated in (or is participating in) the develop-
ment, production, or testing of such system for a military
department or Defense Agency (or for another contractor
of the Department of Defense).
‘‘(2) The Director may waive the limitation under
paragraph (1) in any case if the Director determines in
writing that sufficient steps have been taken to ensure the
impartiality of the contractor in providing the services.
The Inspector General of the Department of Defense shall
review each such waiver and shall include in the Inspector
General’s semi-annual report an assessment of those waiv-
ers made since the last such report.
‘‘(3)(A) A contractor that has participated in (or is
participating in) the development, production, or testing
of a system for the Department of Defense or for another
contractor of the Department of Defense may not be in-
volved in any way in the establishment of criteria for data
collection, performance assessment, or evaluation activities
for the operational test and evaluation of that system.
‘‘(B) The limitation in subparagraph (A) does not
apply to a contractor that has participated solely in testing
for the Federal Government.
‘‘(g) SOURCE OF FUNDS FOR TESTING.—The costs
for all tests required under subsection (b) shall be paid
from funds available for the system being tested.
‘‘(h) DIRECTOR’S ANNUAL REPORT.—As part of the
annual report of the Director under section 139 of this
title, the Director shall describe for each program covered
in the report the status of test and evaluation activities
in comparison with the test and evaluation master plan
for that program, as approved by the Director. The Direc-
tor shall include in such annual report a description of
each waiver granted under subsection (f)(2) since the last
such report.
‘‘(i) DEFINITIONS.—In this section:
‘‘(1) The term ‘major system’ has the meaning
given that term in section 2302(5) of this title.
‘‘(2) The term ‘operational test and evaluation’
has the meaning given that term in section
139(a)(2)(A) of this title. For purposes of subsection
(a), that term does not include an operational as-
sessment based exclusively on—
‘‘(A) computer modeling;
‘‘(B) simulation; or
‘‘(C) an analysis of system requirements,
engineering proposals, design specifications, or
any other information contained in program
documents.
‘‘(3) The term ‘congressional defense commit-
tees’ means—
‘‘(A) the Committee on Armed Services
and and the Committee on Appropriations of
the Senate; and
‘‘(B) the Committee on National Security
and the Committee on Appropriations of the
House of Representatives.’’.
(b) QUANTITIES PROCURED FOR LOW-RATE INITIAL
PRODUCTION.—(1) Subsection (a) of section 2400 of such
title is amended—
(A) by striking out paragraph (3);
(B) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively;
(C) by striking out the second sentence of para-
graph (4), as so redesignated; and
(D) by adding at the end the following new
paragraph:
‘‘(5)(A) Except as provided in subparagraph (B), the
quantity determined for a system under paragraph (1)
may not exceed the quantity equal to 10 percent of the
total quantity of articles of the system that is to be ac-
quired under the program for the acquisition of such sys-
tem, determined as of the date on which funds appro-
priated for procurement are first obligated for the pro-
gram.
‘‘(B) The quantity of articles determined for a system
under paragraph (1) may exceed the maximum quantity
provided under subparagraph (A)—
‘‘(i) during a war declared by Congress or a na-
tional emergency declared by Congress or the Presi-
dent; or
‘‘(ii) if the Secretary of Defense certifies to the
congressional defense committees referred to in sec-
tion 2399(i)(3) of this title that it is necessary to do
so in order to provide for completion of initial oper-
ational test and evaluation of the system and that it
is impracticable to limit the quantity of the articles
procured to such maximum quantity.
‘‘(6) The additional quantity of articles that may be
determined for a system pursuant to the exception in
paragraph (5)(B)(ii) may not exceed the quantity equal
to 5 percent of the total quantity of articles of the system
that are to be acquired under the program, determined
as of the date referred to in paragraph (5)(A).’’.
(2) Subsection (b) of such section is amended to read
as follows:
‘‘(b) LOW-RATE INITIAL PRODUCTION OF WEAPON
SYSTEMS.—Except as provided in subsection (c), low-rate
initial production with respect to a new system is produc-
tion of the system in the minimum quantity necessary—
‘‘(1) to establish an initial production base with
the capacity to provide production-configured or rep-
resentative articles for operational tests pursuant to
section 2399 of this title; and
‘‘(2) to maintain such production base until ini-
tial operational test and evaluation of the system is
completed and a decision is made regarding whether
to proceed into full-rate production.’’.
(c) DUTIES AND AUTHORITY OF DIRECTOR OF OPER-
ATIONAL TEST AND EVALUATION.—Section 139(c) of title
10, United States Code, is amended by striking out the
first sentence and inserting in lieu thereof the following:
‘‘The Director reports directly, without intervening review
or approval, to the Secretary of Defense personally.’’.
(d) EFFECTIVE DATE AND SAVINGS PROVISION.—(1)
The amendments made by this section shall take effect
on the date of the enactment of this Act.
(2) The amendments made by subsections (a), (b),
and (c) shall apply with respect to programs for the acqui-
sition of systems that, as of the date of the enactment
of this Act, are scheduled to enter low-rate initial produc-
tion on or after October 1, 1996.
(3) The provisions of sections 2399 and 2400 of title
10, United States Code, as in effect on the day before
the date of the enactment of this Act, shall continue to
apply after that date to programs for the acquisition of
major systems that enter or, as of the date of the enact-
ment of this Act, are scheduled to enter low-rate initial
production before October 1, 1996.
SEC. 114. ACQUISITION OF INFORMATION TECHNOLOGY.
The Secretary of Defense shall revise the existing De-
partment of Defense directives regarding development and
procurement of information systems (numbered in the
8000 series) and the Department of Defense directives
numbered in the 5000 series in order to consolidate those
directives into one series of directives that is consistent
with the simplified acquisition program cycle provided for
in section 2221 of title 10, United States Code, as added
by section 112.
Subtitle C—Rapid Contracting
SEC. 121. GOAL.
(a) ESTABLISHMENT.—The Secretary of Defense
shall establish a goal of reducing by 50 percent the time
necessary for the Department of Defense to acquire an
item for the user of that item.
(b) ACTION.—The Secretary shall take such action
as is necessary to ensure that the Department of Defense
achieves the goal established under subsection (a), includ-
ing actions necessary to facilitate—
(1) the definition of the requirements for an ac-
quisition; and
(2) the selection of sources from among the
offerors.
SEC. 122. AUTHORITY TO LIMIT NUMBER OF OFFERORS.
Section 2305(b) of title 10, United States Code, is
amended by adding at the end the following:
‘‘(5) Under regulations prescribed by the head of an
agency, a contracting officer of the agency receiving more
than three competitive proposals for a proposed contract
may solicit best and final offers from three of the offerors
who submitted offers within the competitive range. Not-
withstanding paragraph (4)(A)(i), the contracting officer
need not first conduct discussions with all of the respon-
sible parties that submit offers within the competitive
range.’’.
SEC. 123. PREFERENCE FOR CERTIFIED CONTRACTORS.
Chapter 137 of title 10, United States Code, is
amended by inserting after section 2319 the following new
section:
‘‘§ 2319a. Contractor performance certification sys-
tem
‘‘(a) CERTIFICATION AUTHORIZED.—The Secretary
of Defense may establish a contractor certification system
for the procurement of particular property or services that
are procured by the Department of Defense on a repetitive
basis. Under the system, the Secretary shall use competi-
tive procedures to certify contractors as eligible for con-
tracts to furnish such property or services. The Secretary
shall award certifications on the basis of the relative effi-
ciency and effectiveness of the business practices, level of
quality, and demonstrated contract performance of the re-
sponding contractors with regard to the particular prop-
erty or services.
‘‘(b) PROCUREMENT FROM CERTIFIED CONTRAC-
TORS.—The head of an agency within the Department of
Defense may enter into a contract for a procurement of
property or services referred to in subsection (a) on the
basis of a competition among contractors certified with re-
spect to such property or services pursuant to that sub-
section.
‘‘(c) TERMINATION OF CERTIFICATION.—The Sec-
retary—
‘‘(1) may provide for the termination of a cer-
tification awarded a contractor under this section
upon the expiration of a period specified by the Sec-
retary; and
‘‘(2) may revoke a certification awarded a con-
tractor under this section upon a determination that
the quality of performance of the contractor does not
meet standards applied by the Secretary as of the
time of the revocation decision.’’.
SEC. 124. CONSIDERATION OF PAST PERFORMANCE AND
ELIGIBILITY CERTIFICATION.
Section 2305 of title 10, United States Code, is
amended—
(1) in subsection (a)(2)(A)(i)—
(A) by striking out ‘‘(including price)’’ and
inserting in lieu thereof ‘‘(including price, past
contract performance of the offeror, and any
certification of the offeror under section 2319a
of this title)’’; and
(B) by striking out ‘‘and noncost-related’’
and inserting in lieu thereof the following: ‘‘past
contract performance of the offeror, any certifi-
cation of the offeror under section 2319a of this
title, and other noncost-related’’;
(2) in subsection (b)—
(A) in paragraph (3), by striking out ‘‘and
the other price-related factors included in the
solicitation’’ in the second sentence and insert-
ing in lieu thereof ‘‘, the other price-related fac-
tors included in the solicitation, the past con-
tract performance (if any) of the offerors, and
any certification of offerors under section
2319a of this title’’; and
(B) in paragraph (4)(B), by striking out
‘‘and the other factors included in the solicita-
tion’’ in the first sentence and inserting in lieu
thereof ‘‘, the past contract performance (if
any) of the offerors, any certification of offerors
under section 2319a of this title, and the other
factors included in the solicitation’’;
(3) in subsection (c)(1), by inserting ‘‘past per-
formance of the offerors, any certification of offerors
under section 2319a of this title,’’ after ‘‘(consider-
ing quality, price, delivery,’’; and
(4) by adding at the end the following new sub-
section:
‘‘(g) The Secretary of Defense shall maintain a con-
tractor performance data base. The Secretary shall include
in the data base information on the history of the perform-
ance of each contractor under Department of Defense con-
tracts and, for each such contract performed by the con-
tractor, a technical evaluation of the contractor’s perform-
ance prepared by the acquisition program manager re-
sponsible for the contract. The Secretary shall make infor-
mation in the data base available to acquisition program
executive officers and acquisition program managers of
the Department of Defense and to the contractor to which
the information pertains.’’.
SEC. 125. ENCOURAGEMENT OF MULTIYEAR CONTRACTING.
Section 2306b(a) of title 10, United States Code, is
amended in the matter preceding paragraph (1) by strik-
ing out ‘‘may’’ and inserting in lieu thereof ‘‘shall, to the
maximum extent possible,’’.
SEC. 126. ENCOURAGEMENT OF USE OF LEASING AUTHOR-
ITY.
(a) IN GENERAL.—Chapter 137 of title 10, United
States Code, is amended by inserting after section 2316
the following new section:
‘‘§ 2317. Equipment leasing
‘‘The Secretary of Defense shall authorize and en-
courage the use of leasing in the acquisition of equipment
whenever such leasing is practicable and otherwise author-
ized by law.’’.
(b) REPORT.—Not later than 90 days after the the
date of the enactment of this Act, the Secretary of Defense
shall submit to Congress a report setting forth changes
in legislation that would be required in order to facilitate
the use of leases by the Department of Defense in the
acquisition of equipment, including the use of multiyear
leases.
Subtitle D—Performance Based
Contract Management
SEC. 131. UNALLOWABLE COSTS.
(a) SPECIFIC COSTS.—Section 2324(e)(1) of title 10,
United States Code, is amended by adding at the end the
following:
‘‘(P) Labor costs in excess of the labor costs
provided for in the offer of the contractor.
‘‘(Q) Bid protest costs.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the enact-
ment of this Act and shall apply with respect to solicita-
tions for offers issued under chapter 137 of title 10,
United States Code, on or after that date.
SEC. 132. ALTERNATIVES APPROACHES TO CONTRACT
MANAGEMENT.
The Secretary of Defense shall prescribe in regula-
tions policies and procedures that encourage contract ad-
ministrators of the Department of Defense to submit to
program managers, and program managers to consider,
alternative approaches to contract management. A con-
tract administrator submitting an alternative approach to
the program manager shall include an analysis of the costs
and benefits of each alternative.
SEC. 133. CONTRACTOR SHARE OF GAINS AND LOSSES
FROM COST, SCHEDULE, AND PERFORMANCE
EXPERIENCE.
Chapter 137 of title 10, United States Code, is
amended by inserting after section 2306b the following
new section:
‘‘§ 2306c. Contractor share of gains and losses from
cost, schedule, and performance experi-
ence
‘‘The Secretary of Defense shall prescribe in regula-
tions a clause, to be included in each cost-type contract
and incentive-type contract, that provides a system for the
contractor to be rewarded for contract performance ex-
ceeding the contract cost, schedule, or performance pa-
rameters to the benefit of the United States and to be
penalized for failing to adhere to cost, schedule, or per-
formance parameters to the detriment of the United
States.’’.
Subtitle E—Financial Management
SEC. 141. PHASE FUNDING OF DEFENSE ACQUISITION PRO-
GRAMS.
Chapter 131 of title 10, United States Code, as
amended by section 112, is further amended by adding
at the end the following:
‘‘§ 2222. Funding for results oriented acquisition pro-
gram cycle
‘‘(a) PROGRAM PHASE DETAILS TO BE SUBMITTED
TO CONGRESS.—Before initial funding is made available
for a phase of the acquisition program cycle of an acquisi-
tion program for which an authorization of appropriations
is required by section 114 of this title, the Secretary of
Defense shall submit to Congress information about the
objectives and plans for the conduct of that phase and the
funding requirements for the entire phase. The informa-
tion shall identify the intended user of the system to be
acquired under the program and shall include objective,
quantifiable criteria for assessing the extent to which the
objectives and goals determined pursuant to section 2435
of this title are achieved.
‘‘(b) FULL PHASE FUNDING.—(1) In authorizing ap-
propriations for an acquisition program for which an au-
thorization of appropriations is required by section 114
of this title, Congress shall provide in an Act authorizing
appropriations for the Department of Defense an author-
ization of appropriations for a phase of the acquisition
program in a single amount that is sufficient for carrying
out that phase. Each such authorization of appropriations
shall be stated in the Act as a specific item.
‘‘(2) In each Act making appropriations for the De-
partment of Defense Congress shall specify the phase of
each such acquisition program of the department for
which an appropriation is made and the amount of the
appropriation for the phase of that program.’’.
SEC. 142. MAXIMIZED BENEFIT FUNDING.
Chapter 131 of title 10, United States Code, as
amended by section 141, is further amended by adding
at the end the following:
‘‘§ 2223. Maximized benefit funding
‘‘(a) TRANSFERS AUTHORITY.—The Secretary of De-
fense may transfer funds from appropriations available for
a particular phase of an acquisition program of the De-
partment of Defense in order to pay out of the transferred
funds the cost of incentives provided program managers
who have been certified by the Secretary as having
achieved at least 90 percent of the cost, schedule, and per-
formance goals established for that phase.
‘‘(b) LIMITATIONS.—The Secretary shall prescribe in
regulations—
‘‘(1) the percent of available funds that may be
transferred under the authority of subsection (a) for
payment of incentives; and
‘‘(2) a limitation that the total amount trans-
ferred for a phase of a program may not exceed 1⁄3
of the total amount of the cost of such phase that
is determined under the regulations to have been
saved as a result of the achievement of the goals for
which the incentives are to be paid.’’.
SEC. 143. IMPROVED DEPARTMENT OF DEFENSE CON-
TRACT PAYMENT PROCEDURES.
(a) REVIEW AND IMPROVEMENT OF PROCEDURES.—
The Comptroller General of the United States shall review
commercial practices regarding accounts payable and, con-
sidering the results of the review, develop standards for
the Secretary of Defense to use for improving the contract
payment procedures and financial management systems of
the Department of Defense.
(b) GAO REPORT.—Not later than September 30,
1996, the Comptroller General shall submit to Congress
a report containing the following matters:
(1) The weaknesses in the financial manage-
ment processes of the Department of Defense.
(2) Deviations of the Department of Defense
payment procedures and financial management sys-
tems from the standards developed pursuant to sub-
section (a), expressed quantitatively.
(3) The officials of the Department of Defense
who are responsible for resolving the deviations.
(c) RESPONSIBILITIES
OF
THE SECRETARY.—The
Secretary of Defense shall take such corrective actions as
are necessary to resolve the deviations reported pursuant
to subsection (b) to within 90 percent of the applicable
standards developed under subsection (a).
(d) ENFORCEMENT OF RESPONSIBILITY FOR RE-
SOLVING SYSTEM WEAKNESSES.—The Secretary of De-
fense may not provide any bonus or incentive pay to an
official identified pursuant to subsection (b) as responsible
for resolving deviations until the Secretary certifies to
Congress that the official has resolved more than 90 per-
cent of those deviations to be within the applicable stand-
ards developed under subsection (a).
Subtitle F—Defense Acquisition
Workforce
SEC. 151. CONSIDERATION OF PAST PERFORMANCE IN AS-
SIGNMENT TO ACQUISITION POSITIONS.
(a) REQUIREMENT.—Section 1701(a) of title 10,
United States Code, is amended by adding at the end the
following: ‘‘The policies and procedures shall provide that
education and training in acquisition matters, and past
performance of acquisition responsibilities, are major fac-
tors in the selection of personnel for assignment to acqui-
sition positions in the Department of Defense.’’.
(b) PERFORMANCE REQUIREMENTS
FOR ASSIGN-
MENT.—(1) Section 1723(a) of title 10, United States
Code, is amended by inserting ‘‘, including requirements
relating to demonstrated past performance of acquisition
duties,’’ in the first sentence after ‘‘experience require-
ments’’.
(2) Section 1724(a)(2) of such title is amended by
inserting before the semicolon at the end the following:
‘‘and have demonstrated proficiency in the performance of
acquisition duties in the contracting position or positions
previously held’’.
(3) Section 1735 of such title is amended—
(A) in subsection (b)—
(i) by striking out ‘‘and’’ at the end of
paragraph (2);
(ii) by striking out the period at the end
of paragraph (3) and inserting in lieu thereof ‘‘;
and’’; and
(iii) by adding at the end the following:
‘‘(4) must have demonstrated proficiency in the
performance of acquisition duties.’’;
(B) in subsection (c)—
(i) by striking out ‘‘and’’ at the end of
paragraph (2);
(ii) by striking out the period at the end
of paragraph (3) and inserting in lieu thereof ‘‘;
and’’; and
(iii) by adding at the end the following:
‘‘(4) must have demonstrated proficiency in the
performance of acquisition duties.’’;
(C) in subsection (d), by inserting before the
period at the end the following: ‘‘, and have dem-
onstrated proficiency in the performance of acquisi-
tion duties’’; and
(D) in subsection (e), by inserting before the
period at the end the following: ‘‘, and have dem-
onstrated proficiency in the performance of acquisi-
tion duties’’.
SEC. 
152. 
TERMINATION 
OF 
DEFENSE 
ACQUISITION
SCHOOLS.
(a) CONTRACTING FOR DEFENSE ACQUISITION EDU-
CATION AND TRAINING.—Chapter 87 of title 10, United
States Code, is amended by adding at the end of sub-
chapter IV the following:
‘‘§ 1747 Professional educational development and
training programs
‘‘The Secretary of Defense shall provide for the ac-
quisition of professional educational development and
training services for the acquisition workforce from com-
mercial sources and through programs provided by Fed-
eral Government sources for all acquisition personnel of
all departments and agencies of the Federal Govern-
ment.’’.
(b) TERMINATION OF DEFENSE ACQUISITION UNI-
VERSITY STRUCTURE.—Section 1746 of title 10, United
States Code, is repealed.
(c) EDUCATION AND TRAINING OF PROGRAM MAN-
AGERS AND PROGRAM EXECUTIVE OFFICERS.—Section
1735 of such title is amended—
(1) by striking out paragraph (1) of subsection
(b) and inserting in lieu thereof the following:
‘‘(1) must have completed a course of program
management provided for under section 1747 of this
title or determined by the Secretary of Defense as
appropriate training for program managers of the
Department of Defense;’’; and
(2) by striking out paragraph (1) of subsection
(c) and inserting in lieu thereof the following:
‘‘(1) must have completed a course of program
management provided for under section 1747 of this
title or determined by the Secretary of Defense as
appropriate training for program executive officers
of the Department of Defense;’’.
(d) ALTERNATIVE PROPOSAL.—The Secretary may
submit to Congress a proposed system of professional edu-
cational development and training for the Department of
Defense acquisition workforce as an alternative to the sys-
tem provided for in the amendments made by this section.
Any such proposal shall be submitted not later than June
30, 1996.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1996.
Subtitle G—Revision of Procure-
ment Integrity Requirements
SEC. 161. AMENDMENTS TO OFFICE OF FEDERAL PROCURE-
MENT POLICY ACT.
(a) RECUSAL.—Subsection (c) of section 27 of the
Office of Procurement Policy Act (41 U.S.C. 423) is
amended—
(1) in paragraph (1)—
(A) in the matter above subparagraph (A),
by inserting ‘‘only’’ after ‘‘subsection (b)(1)’’;
and
(B) in subparagraph (A), by inserting
‘‘(including the modification or extension of a
contract)’’ after ‘‘any procurement’’;
(2) by striking out paragraphs (2) and (3) and
inserting in lieu thereof:
‘‘(2) Whenever the head of a procuring activity ap-
proves a recusal under paragraph (1), a copy of the
recusal request and the approval of the request shall be
retained by such official for a period (not less than five
years) specified in regulations prescribed in accordance
with subsection (o).
‘‘(3)(A) Except as provided in subparagraph (B), all
recusal requests and approvals of recusal requests pursu-
ant to this subsection shall be made available to the public
on request.
‘‘(B) Any part of a recusal request or an approval
of a recusal request that is exempt from the disclosure
requirements of section 552 of title 5, United States Code,
under subsection (b)(1) of such section may be withheld
from disclosure to the public otherwise required under
subparagraph (A).’’; and
(3) in paragraph (4), by striking out ‘‘compet-
ing contractor’’ and inserting in lieu thereof ‘‘per-
son’’.
(b) APPLICABILITY
OF CERTIFICATION REQUIRE-
MENT.—Subsection (e)(7)(A) of such section is amended
by adding at the end the following: ‘‘However, paragraph
(1)(B) does not apply with respect to a contract for less
than $500,000.’’.
(c) RESTRICTIONS RESULTING FROM PROCUREMENT
ACTIVITIES OF PROCUREMENT OFFICIALS.—Subsection
(f) of such section is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and
(2) by striking out paragraphs (1) and (2) and
inserting in lieu thereof the following:
‘‘(1) No individual who, in the year prior to separa-
tion from service as an officer or employee of the Govern-
ment or an officer of the uniformed services in a covered
position, participated personally and substantially in ac-
quisition functions related to a contract, subcontract, or
claim of $500,000 or more and—
‘‘(A) engaged in repeated direct contact with
the contractor or subcontractor on matters relating
to such contract, subcontract, or claim; or
‘‘(B) exercised significant ongoing decisionmak-
ing responsibility with respect to the contractor or
subcontractor on matters relating to such contract,
subcontract, or claim,
shall knowingly accept or continue employment with such
contractor or subcontractor for a period of one year follow-
ing the individual’s separation from service, except that
such individual may accept or continue employment with
any division or affiliate of such contractor or subcontrac-
tor that does not produce the same or similar products
as the entity involved in the negotiation or performance
of the contract or subcontract or the adjustment of the
claim.
‘‘(2) No contractor or subcontractor, or any officer,
employee, agent, or consultant of such contractor or sub-
contractor shall knowingly offer, provide, or continue any
employment for another person, if such contractor, sub-
contractor, officer, employee, agent, or consultant knows
or should know that the acceptance of such employment
is or would be in violation of paragraph (1).
‘‘(3) The head of each Federal agency shall designate
in writing as a ‘covered position’ under this section each
of the following positions in that agency:
‘‘(A) The position of source selection authority,
member of a source selection evaluation board, or
chief of a financial or technical evaluation team, or
any other position, if the officer or employee in that
position is likely personally to exercise substantial
responsibility for ongoing discretionary functions in
the evaluation of proposals or the selection of a
source for a contract in excess of $500,000.
‘‘(B) The position of procuring contracting offi-
cer, or any other position, if the officer or employee
in that position is likely personally to exercise sub-
stantial responsibility for ongoing discretionary func-
tions in the negotiation of a contract in excess of
$500,000 or the negotiation or settlement of a claim
in excess of $500,000.
‘‘(C) The position of program executive officer,
program manager, or deputy program manager, or
any other position, if the officer or employee in that
position is likely personally to exercise similar sub-
stantial responsibility for ongoing discretionary func-
tions in the management or administration of a con-
tract in excess of $500,000.
‘‘(D) The position of administrative contracting
officer, the position of an officer or employee as-
signed on a permanent basis to a Government Plant
Representative’s Office, the position of auditor, a
quality assurance position, or any other position, if
the officer or employee in that position is likely per-
sonally to exercise substantial responsibility for on-
going discretionary functions in the on-site oversight
of a contractor’s operations with respect to a con-
tract in excess of $500,000.
‘‘(E) A position in which the incumbent is likely
personally to exercise substantial responsibility for
ongoing discretionary functions in operational or de-
velopmental testing activities involving repeated di-
rect contact with a contractor regarding a contract
in excess of $500,000.’’.
(d) DISCLOSURE OF PROPRIETARY OR SOURCE SE-
LECTION INFORMATION TO UNAUTHORIZED PERSONS.—
Subsection (l) of such section is amended—
(1) by inserting ‘‘who are likely to be involved
in contracts, modifications, or extensions in excess of
$25,000’’ in the first sentence after ‘‘its procure-
ment officials’’; and
(2) by striking out ‘‘(e)’’ each place it appears
and inserting in each such place ‘‘(f)’’.
(e) RULES OF CONSTRUCTION.—Subsection (n) of
such section is amended to read as follows:
‘‘(n) RULES OF CONSTRUCTION.—Nothing in this
section shall be construed to—
‘‘(1) authorize the withholding of any informa-
tion from the Congress, any committee or sub-
committee thereof, a Federal agency, any board of
contract appeals of a Federal agency, the Comptrol-
ler General, or an inspector general of a Federal
agency;
‘‘(2) restrict the disclosure of information to, or
receipt of information by, any person or class of per-
sons authorized, in accordance with applicable agen-
cy regulations or procedures, to receive that infor-
mation;
‘‘(3) restrict a contractor from disclosing its
own proprietary information or the recipient of in-
formation so disclosed by a contractor from receiving
such information; or
‘‘(4) restrict the disclosure or receipt of infor-
mation relating to a Federal agency procurement
that has been canceled by the agency and that the
contracting officer concerned determines in writing
is not likely to be resumed.’’.
(f) TERM TO BE DEFINED IN REGULATIONS.—Sub-
section (o)(2)(A) of such section is amended—
(1) by inserting ‘‘money, gratuity, or other’’ be-
fore ‘‘thing of value’ ’’; and
(2) by inserting before the semicolon ‘‘and such
other exceptions as may be adopted on a Govern-
mentwide basis under section 7353 of title 5, United
States Code’’.
(g) TERMS DEFINED IN LAW.—Subsection (p) of
such section is amended—
(1) in paragraph (1) by striking out ‘‘clauses
(i)–(viii)’’ and inserting in lieu thereof ‘‘clauses (i)
through (vii)’’;
(2) in paragraph (3)—
(A) in subparagraph (A)—
(i) by striking out clause (i);
(ii) by redesignating clauses (ii), (iii),
(iv), (v), (vi), (vii), and (viii) as clauses (i),
(ii), (iii), (iv), (v), (vi), and (vii), respec-
tively; and
(iii) in clause (i) (as redesignated by
subclause (II) of this clause), by striking
out ‘‘review and approval of a specifica-
tion’’ and inserting in lieu thereof ‘‘ap-
proval or issuance of a specification, acqui-
sition plan, procurement request, or req-
uisition’’; and
(B) in subparagraph (B), by striking out
all after ‘‘includes’’ and inserting in lieu thereof
the following: ‘‘any individual acting on behalf
of, or providing advice to, the agency with re-
spect to any phase of the agency procurement
concerned, regardless of whether such individ-
ual is a consultant, expert, or adviser, or an of-
ficer or employee of a contractor or subcontrac-
tor (other than a competing contractor).’’; and
(3) 
in 
paragraph 
(6)(A), 
by 
inserting
‘‘nonpublic’’ before ‘‘information’’.
SEC. 162. AMENDMENTS TO TITLE 18, UNITED STATES
CODE.
Section 208(a) of title 18, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ before ‘‘Except as per-
mitted’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) Whoever knowingly aids, abets, counsels, com-
mands, induces, or procures conduct prohibited by this
section shall be subject to the penalties set forth in section
216 of this title.’’.
SEC. 163. REPEAL OF SUPERSEDED AND OBSOLETE LAWS.
(a) REPEAL.—The following provisions of law are
repealed:
(1) Sections 2207, 2397, 2397a, 2397b, and
2397c of title 10, United States Code.
(2) Section 281 of title 18, United States Code.
(3) Part A of title VI of the Department of En-
ergy Organization Act (42 U.S.C. 7211 through
7218).
(b) 
REPEAL
OF
SUPERSEDED
LAW.—Section
6001(b) of the Federal Acquisition Streamlining Act of
1994 (Public Law 103–355; 108 Stat. 3362; (18 U.S.C.
281 note) is repealed.
SEC. 164. IMPLEMENTATION.
(a) REGULATIONS.—Not later than 180 days after
the date of the enactment of this Act, regulations imple-
menting the amendments made by section 161 to section
27 of the Office of Federal Procurement Policy Act (41
U.S.C. 423), including definitions of the terms used in
subsection (f) of such section, shall be issued in accord-
ance with sections 6 and 25 of such Act (41 U.S.C. 405
and 521) after coordination with the Director of the Office
of Government Ethics.
(b) SAVINGS PROVISIONS.—(1) No officer, employee,
agent, representative, or consultant of a contractor who
has signed a certification under section 27(e)(1)(B) of the
Office of Federal Procurement Policy Act (41 U.S.C.
423(e)(1)(B)) before the effective date of this Act shall
be required to sign a new certification as a result of the
enactment of this Act.
(2) No procurement official of a Federal agency who
has signed a certification under section 27(l) of the Office
of Federal Procurement Policy Act (41 U.S.C. 423(l)) be-
fore the date of enactment of this Act shall be required
to sign a new certification as a result of the enactment
of this Act.
(c) INSPECTOR GENERAL REPORTS.—Not later than
May 31 of each of the years 1996 through 1999, the In-
spector General of each Federal agency (or, in the case
of a Federal agency that does not have an Inspector Gen-
eral, the head of such agency) shall submit to Congress
a report on the compliance by the agency during the pre-
ceding year with the requirement for the head of the agen-
cy to designate covered procurement positions under sec-
tion 27(f)(3) of the Office of Federal Procurement Policy
Act (as added by section 161(c)).
Subtitle H—Clerical Amendments
SEC. 171. CLERICAL AMENDMENTS TO TITLE 10.
(a) CHAPTER 87.—The table of sections at the begin-
ning of subchapter IV of chapter 87 of title 10, United
States Code, is amended—
(1) by striking out the item relating to section
1746; and
(2) by adding at the end the following new
item:
‘‘1747. Professional educational development and training programs.’’.
(b) CHAPTER 131.—The table of sections at the be-
ginning of chapter 131 of title 10, United States Code,
is amended—
(1) by striking out the item relating to section
2207; and
(2) by adding at the end the following new
items:
‘‘2221. Results oriented acquisition program cycle.
‘‘2222. Funding for results oriented acquisition program cycle.
‘‘2223. Maximized benefit funding.’’.
(c) CHAPTER 137.—The table of sections at the be-
ginning of chapter 137 of title 10, United States Code,
is amended—
(1) by inserting after the item relating to sec-
tion 2306b the following new item:
‘‘2306c. Contractor share of gains and losses from cost, schedule, and perform-
ance experience.’’;
(2) by inserting after the item relating to sec-
tion 2316 the following new item:
‘‘2317. Equipment leasing.’’;
and
(3) by inserting after the item relating to sec-
tion 2319 the following new item:
‘‘2319a. Contractor performance certification system.’’.
(d) CHAPTER 141.—The table of sections at the be-
ginning of chapter 141 of title 10, United States Code,
is amended—
(1) by striking out the items relating to sections
2397, 2397a, 2397b, and 2397c; and
(2) by striking out the item relating to section
2399 and inserting in lieu thereof the following new
item:
‘‘2399. Operational test and evaluation of major systems under defense acquisi-
tion programs.’’.
SEC. 172. OTHER LAWS.
(a) TITLE 18.—The table of sections for chapter 15
of title 18, United States Code, is amended by striking
out the item relating to section 281.
(b) DEPARTMENT
OF
ENERGY
ORGANIZATION
ACT.—The table of contents in the first section of the De-
partment of Energy Organization Act (42 U.S.C. 7101 et
seq.) is amended by striking out the item relating to part
A of title VI and the sections therein.
TITLE 
II—REORGANIZATION
AND REFORM OF THE DE-
FENSE ACQUISITION SYSTEM
Subtitle A—Streamlining and Im-
provement of Acquisition Man-
agement
SEC. 201. REORGANIZATION OF ACQUISITION AUTHORITY.
(a) UNDER SECRETARY OF DEFENSE FOR ACQUISI-
TION
AND TECHNOLOGY.—Section 133(b) of title 10,
United States Code, is amended—
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by striking out paragraphs (1) and (2) and
inserting in lieu thereof the following:
‘‘(1) prescribing policies for research, develop-
ment, and acquisition activities of the Department of
Defense;
‘‘(2) planning, programming, and overseeing
the research, development, and acquisition activities
of the Department of Defense;
‘‘(3) assisting in the preparation and integra-
tion of budgets for the research, development, and
acquisition activities of the Department of Defense,
including assisting in the planning, programming,
and budgeting system with respect to such activi-
ties;’’.
(b) DEFENSE RESEARCH, DEVELOPMENT, AND AC-
QUISITION AGENCY.—(1) Part I of subtitle A of title 10,
United States Code, is amended by inserting after chapter
9 the following new chapter:
‘‘CHAPTER 10—DEFENSE RESEARCH, DE-
VELOPMENT, AND ACQUISITION AGEN-
CY
‘‘Sec.
‘‘231. Establishment.
‘‘232. Use of agency for all research, development, and acquisition activities.
‘‘233. Duties.
‘‘234. Program executive officers.
‘‘235. Program managers.
‘‘236. Functional analytical capability.
‘‘§ 231. Establishment
‘‘(a) AGENCY.—There is established a Defense Re-
search, Development, and Acquisition Agency in the De-
partment of Defense.
‘‘(b) DIRECTOR.—(1) The head of the agency is the
Director of Defense Research, Development, and Acquisi-
tion who shall be appointed by the Under Secretary of De-
fense for Acquisition and Technology from among persons
who are career professional employees in the acquisition
workforce of the Department of Defense.
‘‘(2) A member of the armed forces, while serving as
the Director, holds the grade of general or, in the case
of an officer of the Navy, admiral. A civilian, while serving
as the Director, holds an equivalent civilian grade.
‘‘(c) CHIEF OF ENGINEERING AND ANALYSIS.—(1)
In the Defense Research, Development, and Acquisition
Agency there is a Chief of Engineering and Analysis who
shall be appointed by the Director from among the career
professional employees in the acquisition workforce of the
Department of Defense.
‘‘(2) The Director shall evaluate the performance of
the Chief of Engineering and Analysis. The Director may
not delegate the performance of the evaluation responsibil-
ity.
‘‘(3) The Chief of Engineering and Analysis shall be
the senior technical adviser for the Defense Research, De-
velopment, and Acquisition Agency.
‘‘§ 232. Use of agency for all research, development,
and acquisition activities
‘‘Subject to sections 3013(h), 5013(h), 8013(h) of
this title, the Director shall conduct the research, develop-
ment, and acquisition activities of the Department of De-
fense, including the activities of the research, development,
and engineering centers of the Department of Defense.
‘‘§ 233. Duties
‘‘The responsibilities of the Under Secretary of De-
fense for Acquisition and Technology that are to be per-
formed by the Defense Research, Development, and Acqui-
sition Agency include the following:
‘‘(1) Planning, programming, and carrying out
the research, development, and acquisition activities
of the Department of Defense.
‘‘(2) Advising the Secretary of Defense and the
Secretaries of the military departments regarding
the preparation and integration of the budgets for
the research, development, and acquisition activities
of the Department of Defense.
‘‘(3) Identifying and informing operational com-
manders regarding alternative technology solutions
to fulfill emerging requirements.
‘‘(4) Ensuring that the acquisition plan for
each acquisition program realistically reflects the
budget and related decisions made for that program.
‘‘(5) Conducting research on management tech-
niques as well as on individual systems.
‘‘§ 234. Program executive officers
‘‘(a) SELECTION AND EVALUATION.—The program
executive officers of the Defense Research, Development,
and Acquisition Agency shall be selected and evaluated by
the Director.
‘‘(b) DUTIES.—The duties of a program executive of-
ficer are as follows:
‘‘(1) To manage acquisition programs assigned
to the program executive officer.
‘‘(2) To manage related technical support re-
sources.
‘‘(3) To establish and conduct integrated deci-
sion team meetings.
‘‘(4) To provide technological advice (including
advice regarding costs, schedule, and performance
data relating to alternative technological approaches
for fulfilling emerging requirements) to users of pro-
gram products and to the officials within the De-
partment of Defense who plan, program, and budget
for the acquisition programs assigned to the pro-
gram executive officer.
‘‘(c) ORGANIZATION OF PERSONNEL.—The program
executive officers shall be organized on the basis of unique
mission areas or, in the case of programs for systems spe-
cifically relating to certain classes of targets, on the basis
of target classes. No program executive officer may be or-
ganized with other program executive officers on both
bases. The Secretary of Defense shall identify the mission
areas or target classes on the basis of which program exec-
utive officers may be organized.
‘‘(d) ACQUISITION LIFE-CYCLE MANAGEMENT.—The
responsibilities of a program executive officer for a weapon
acquisition program shall cover the entire life cycle of the
program.
‘‘(e) USER AND OPERATOR INTERACTION.—(1) The
Chairman of the Joint Chiefs of Staff, in consultation with
the Under Secretary of Defense for Acquisition and Tech-
nology, shall prescribe policies and procedures for the
interaction of the commanders of the unified and specified
combatant commands with program executive officers re-
garding the initiation and conduct of weapon acquisition
programs. The policies and procedures shall include provi-
sions for enabling such commands to perform operational
and acceptance testing of weapons acquired pursuant to
such programs.
‘‘(2) The Under Secretary of Defense (Comptroller),
in consultation with the Under Secretary of Defense for
Acquisition and Technology and the Secretaries of the
military departments, shall prescribe policies and proce-
dures for the interaction between the commanders of the
unified and specified combatant commands and the pro-
‘‘§ 236. Functional analytical capability
‘‘(a) RESPONSIBILITY OF CHIEF OF ENGINEERING
AND ANALYSIS.—The Chief of Engineering and Analysis
shall be responsible for ensuring that each of the func-
tional analytical capabilities provided to the Director, ac-
quisition program executive officers, and acquisition pro-
gram managers in connection with acquisition programs
of the Department of Defense is the most advanced capa-
bility of its type.
‘‘(b) FUNCTIONAL ANALYTICAL CAPABILITIES.—The
functional analytical capabilities referred to in subsection
(a) are as follows:
‘‘(1) Cost and affordability analysis.
‘‘(2) Logistics and support analysis.
‘‘(3) Reliability and maintainability analysis.
‘‘(4) Producibility analysis.
‘‘(5) Environmental analysis.
‘‘(6) Configuration management.
‘‘(7) Warfighting and battlefield performance
and utility analysis.
‘‘(8) System engineering.
‘‘(9) Any other analytical capability that may
be necessary for ensuring the timeliness, perform-
ance, and affordability of acquisition programs.’’.
(2) The tables of chapters at the beginning of subtitle
A of title 10, United States Code, and at the beginning
of part I of such subtitle, are amended by inserting after
the item relating to chapter 9 the following new item:
‘‘10. Defense Research, Development, and Acquisition
Agency ........................................................................
231’’.
(c) LIMITATION OF PROCUREMENT AUTHORITY OF
MILITARY DEPARTMENTS.—(1) Section 3013 of title 10,
United States Code, is amended—
(A) in subsection (b)—
(i) by striking out ‘‘and subject to the pro-
visions of chapter 6 of this title,’’ and inserting
in lieu thereof ‘‘, subject to the provisions of
chapter 6 of this title, and subject to subsection
(h),’’; and
(ii) in paragraph (4), by striking out ‘‘(in-
cluding research and development)’’; and
(B) by adding at the end the following new sub-
section:
‘‘(h)(1) The Secretary of the Army shall be respon-
sible for procurements of property and services, and may
exercise authority to conduct such procurements, only to
the extent that the Secretary of Defense determines nec-
essary for the sustainment of operations of the Army. The
Secretary of Defense shall prescribe in regulations the ex-
tent of the responsibility and authority of the Secretary
of the Army for procurements of property and services.
‘‘(2) In conducting a procurement in accordance with
paragraph (1), the Secretary of the Army shall be subject
to the same laws as are applicable to acquisitions con-
ducted by the Secretary of Defense.’’.
(2) Section 5013 of title 10, United States Code, is
amended—
(A) in subsection (b)—
(i) by striking out ‘‘and subject to the pro-
visions of chapter 6 of this title,’’ and inserting
in lieu thereof ‘‘, subject to the provisions of
chapter 6 of this title, and subject to subsection
(h),’’; and
(ii) in paragraph (4), by striking out ‘‘(in-
cluding research and development)’’; and
(B) by adding at the end the following new sub-
section:
‘‘(h)(1) The Secretary of the Navy shall be respon-
sible for procurements of property and services, and may
exercise authority to conduct such procurements, only to
the extent that the Secretary of Defense determines nec-
essary for the sustainment of operations of the Navy. The
Secretary of Defense shall prescribe in regulations the ex-
tent of the responsibility and authority of the Secretary
of the Navy for procurements of property and services.
‘‘(2) In conducting a procurement in accordance with
paragraph (1), the Secretary of the Navy shall be subject
to the same laws as are applicable to acquisitions con-
ducted by the Secretary of Defense.’’.
(3) Section 8013 of title 10, United States Code, is
amended—
(A) in subsection (b)—
(i) by striking out ‘‘and subject to the pro-
visions of chapter 6 of this title,’’ and inserting
in lieu thereof ‘‘, subject to the provisions of
chapter 6 of this title, and subject to subsection
(h),’’; and
(ii) in paragraph (4), by striking out ‘‘(in-
cluding research and development)’’; and
(B) by adding at the end the following new sub-
section:
‘‘(h)(1) The Secretary of the Air Force shall be re-
sponsible for procurements of property and services, and
may exercise authority to conduct such procurements, only
to the extent that the Secretary of Defense determines
necessary for the sustainment of operations of the Air
Force. The Secretary of Defense shall prescribe in regula-
tions the extent of the responsibility and authority of the
Secretary of the Air Force for procurements of property
and services.
‘‘(2) In conducting a procurement in accordance with
paragraph (1), the Secretary of the Air Force shall be sub-
ject to the same laws as are applicable to acquisitions con-
ducted by the Secretary of Defense.’’.
(4) Section 2302(1) of title 10, United States Code,
is amended by striking out ‘‘the Secretary of the Army,
the Secretary of the Navy, the Secretary of the Air
Force,’’.
(5) Section 2302c of such title is amended—
(A) in subsection (a)(1), by striking out the sec-
ond sentence; and
(B) in subsection (b), by striking out ‘‘para-
graph (5) or (6)’’ and inserting in lieu thereof
‘‘paragraph (2) or (3)’’.
(6) Section 2303(a) of such title is amended—
(A) by striking out paragraphs (2), (3), and
(4); and
(B) by redesignating paragraphs (5) and (6) as
paragraphs (2) and (3), respectively.
SEC. 202. JOINT FOREIGN PRODUCTS DEVELOPMENT.
Section 153 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(c) RECOMMENDATIONS FOR JOINT DEVELOPMENT
OF FOREIGN PRODUCTS.—The Chairman of the Joint
Chiefs of Staff, in consultation with the commanders of
the unified and specified combatant commands, shall make
recommendations to the Under Secretary of Defense for
Acquisition and Technology regarding the desirability of
joint development by the United States and one or more
foreign countries of systems proposed to be developed, or
under development, by such foreign country or foreign
countries.’’.
Subtitle B—Transfer of Functions
SEC. 211. TRANSFERS.
(a) MILITARY DEPARTMENTS.—Except as provided
in subsection (c), all research, development, and acquisi-
tion functions of the Secretaries of the military depart-
ments are transferred to the Secretary of Defense.
(b) PROCUREMENT AGENCIES, COMMANDS, AND OF-
FICES.—Except as provided in subsection (c), there is
transferred to the Defense Research, Development, and
Acquisition Agency referred to in section 231(a) of title
10, United States Code (as added by section 201), all
functions of the following organizations:
(1) The Defense Logistics Agency.
(2) The Advanced Research Projects Agency.
(3) The following procurement commands of
the Army:
(A) The Army Materiel Command.
(B) The Army Information Systems Com-
mand.
(C) The Army Space and Strategic De-
fense Command.
(4) The following procurement commands of
the Navy and Marine Corps:
(A) The Navy weapon systems commands.
(B) The Navy Strategic Systems Program
Office.
(C) The Marine Corps Research, Develop-
ment and Acquisition Command.
(5) The Air Force Materiel Command.
(6) Any successor organization to any agency,
command, or office named in paragraphs (1)
through (5).
(7) Each agency or command within the De-
partment of Defense not referred to in paragraphs
(1) through (6) that, on the day before the effective
date of this title, has as a primary mission or func-
tion the performance of a research, development, or
acquisition function of the Department of Defense.
(c) FUNCTIONS NOT TRANSFERRED.—(1) The fol-
lowing functions of the Secretaries of the military depart-
ments are not transferred to the Secretary of Defense:
(A) Functions that relate to planning, program-
ming, and budgeting.
(B) Functions to be performed by the Secretary
of a military department pursuant to section
3013(h), 5013(h), or 8013(h) of title 10, United
States Code, as added by section 201(c).
(2) To the extent prescribed by the Secretary of De-
fense, functions referred to in paragraph (1)(B) that are
performed by an organization referred to in subsection (b)
need not be transferred in accordance with that sub-
section.
(d) TERMINATION
OF ORGANIZATION.—The Sec-
retary of Defense shall terminate each organization from
which all of its functions are transferred under subsection
(b).
SEC. 212. SAVINGS PROVISIONS.
(a) REGULATIONS, INSTRUMENTS, RIGHTS, AND
PRIVILEGES.—All rules, regulations, contracts, orders, de-
terminations, permits, certificates, licenses, grants, and
privileges—
(1) which have been issued, made, granted, or
allowed to become effective by the Secretary or other
officer or employee of a military department, the
head of a Defense Agency of the Department of De-
fense, or by a court of competent jurisdiction, in
connection with any research, development, or acqui-
sition activity of a military department or Defense
Agency, and
(2) which are in effect on the effective date of
this title,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the Secretary of Defense, the
Under Secretary of Defense for Acquisition and Tech-
nology, or another authorized official, by a court of com-
petent jurisdiction, or by operation of law.
(b) PROCEEDINGS AND APPLICATIONS.—(1)(A) The
provisions of this subtitle shall not affect any proceeding,
including any proceeding involving a claim or application,
in connection with any acquisition activity of a military
department or a Defense Agency of the Department of De-
fense that is pending before that military department or
Defense Agency on the effective date of this title.
(B) Orders may be issued in any such proceeding,
appeals may be taken therefrom, and payments may be
made pursuant to such orders, as if this Act had not been
enacted. An order issued in any such proceeding shall con-
tinue in effect until modified, terminated, superseded, or
revoked by the Secretary of Defense or the Under Sec-
retary of Defense for Acquisition and Technology, by a
court of competent jurisdiction, or by operation of law.
(C) Nothing in this paragraph prohibits the dis-
continuance or modification of any such proceeding under
the same terms and conditions and to the same extent that
such proceeding could have been discontinued or modified
if this Act had not been enacted.
(2) The Secretary of Defense may prescribe regula-
tions providing for the orderly transfer of proceedings con-
tinued under paragraph (1) to the Secretary of Defense
or to the Under Secretary of Defense for Acquisition and
Technology.
Subtitle C—Conforming
Amendments
SEC. 221. MODIFICATION OF THE RESPONSIBILITY OF THE
UNDER SECRETARY OF DEFENSE (COMP-
TROLLER) FOR DEFENSE ACQUISITION BUDG-
ETS.
Section 135(c) of title 10, United States Code, is
amended in each of paragraphs (2), (3), and (4), by insert-
ing after the paragraph designation the following: ‘‘subject
to section 133(b) of this title,’’.
SEC. 222. THE DEFENSE ACQUISITION WORK FORCE.
(a) GENERAL
AUTHORITIES
AND
RESPONSIBIL-
ITIES.—(1)(A) Sections 1704, 1705, and 1707 of title 10,
United States Code, are repealed.
(B) The table of sections at the beginning of sub-
chapter I of chapter 87 of such title is amended by strik-
ing out the items relating to sections 1704 through 1707
and inserting in lieu thereof the following:
‘‘1704. Acquisition career program boards.’’.
(2) Section 1706 of title 10, United States Code, is
amended—
(A) in subsection (a), by striking out ‘‘an Ac-
quisition Corps’’ in the first sentence and inserting
in lieu thereof ‘‘the Acquisition Corps’’;
(B) in the section heading by striking out
‘‘§ 1706’’ and inserting in lieu thereof ‘‘§ 1704’’;
(C) by striking out subsection (a) and inserting
in lieu thereof the following:
‘‘(a) ESTABLISHMENT.—The Under Secretary of De-
fense for Acquisition and Technology shall establish an ac-
quisition career program board to advise the Under Sec-
retary in managing the accession, training, education, and
career development of military and civilian personnel in
the acquisition workforce and in selecting individuals for
the Acquisition Corps under section 1731 of this title.’’;
(C) in subsection (b)—
(i) in the first sentence, by striking out
‘‘Each’’ and inserting in lieu thereof ‘‘The’’;
and
(ii) in the second sentence, by striking out
‘‘service acquisition executive’’ and inserting in
lieu thereof ‘‘Under Secretary’’; and
(D) in subsection (c)—
(i) by striking out ‘‘Secretary of a military
department’’ and inserting in lieu thereof
‘‘Under Secretary’’; and
(ii) by striking out ‘‘in the department’’.
(b) DEFENSE ACQUISITION POSITIONS.—(1) Section
1722 of title 10, United States Code, is amended—
(A) in subsection (g), by striking out ‘‘Sec-
retary of each military department, acting through
the service acquisition executive for that depart-
ment,’’ and inserting in lieu thereof ‘‘Secretary of
Defense’’; and
(B) in subsection (h), by striking out ‘‘or the
Secretary of a military department (as applicable)’’.
(2) Section 1724(d) of such title is amended in the
first sentence—
(A) by striking out ‘‘a military department’’
and inserting in lieu thereof ‘‘the Department of
Defense’’; and
(B) by striking out ‘‘of that military depart-
ment’’.
(c) ACQUISITION CORPS.—(1) Section 1731 of title
10, United States Code, is amended—
(A) by striking out subsection (a) and inserting
in lieu thereof the following:
‘‘(a) ACQUISITION CORPS.—The Secretary of Defense
shall establish a Department of Defense Acquisition
Corps.’’; and
(B) in subsection (b), by striking out ‘‘an Ac-
quisition Corps’’ and inserting in lieu thereof ‘‘the
Acquisition Corps’’.
(2) Section 1732 of such title is amended—
(A) in subsection (a), by striking out ‘‘an Ac-
quisition Corps’’ in the first sentence and inserting
in lieu thereof ‘‘the Acquisition Corps’’;
(B) in subsection (b)—
(i) in paragraph (2)(A)(ii), by striking out
‘‘of the employing military department’’; and
(ii) in paragraph (4), by striking out ‘‘or
the Secretary of the military department con-
cerned’’; and
(C) in subsection (d)—
(i) by striking out ‘‘of a military depart-
ment’’ in the first sentence of paragraph (1)
and in paragraph (2); and
(ii) by striking out ‘‘of that military de-
partment’’ in the first sentence of paragraph
(1).
(3) Section 1733(a) of such title is amended by strik-
ing out ‘‘an Acquisition Corps’’ and inserting in lieu there-
of ‘‘the Acquisition Corps’’.
(4) Section 1734 of such title is amended—
(A) in subsection (a)(1), by striking out ‘‘Sec-
retary of each military department, acting through
the service acquisition executive for that depart-
ment,’’ in the first sentence and inserting in lieu
thereof ‘‘Secretary of Defense, acting through the
Under Secretary of Defense for Acquisition and
Technology,’’;
(B) in subsection (b)(1), by striking out ‘‘major
milestone’’ and inserting in lieu thereof ‘‘phase of
the program cycle’’;
(C) by striking out subsection (c);
(D) in subsection (d), by striking out para-
graphs (2) and (3) and inserting in lieu thereof the
following:
‘‘(2) The authority to grant waivers may be delegated
by the Under Secretary only to the Director of Acquisi-
tion, Education, Training, and Career Development.
‘‘(3) With respect to each waiver granted under this
subsection, the Under Secretary shall set forth in a writ-
ten document the rationale for the decision to grant the
waiver. The Director of Acquisition, Education, Training,
and Career Development shall maintain all such docu-
ments.’’;
(E) in subsection (e)—
(i) in the first sentence of paragraph (1)—
(I) by striking out ‘‘an Acquisition
Corps’’ in the first sentence and inserting
in lieu thereof ‘‘the Acquisition Corps’’;
and
(II) by striking out ‘‘major program
milestone’’ and inserting in lieu thereof
‘‘phase of the program cycle’’; and
(ii) in paragraph (2), by striking out ‘‘of
the department concerned’’ in the first sen-
tence;
(F) by striking out subsections (g) and (h) and
inserting in lieu thereof the following:
‘‘(g) ASSIGNMENTS.—Subject to the authority, direc-
tion, and control of the Secretary, the Under Secretary
shall make the assignments of civilian and military mem-
bers of the Acquisition Corps to critical acquisition posi-
tions.’’;
(G) by striking out ‘‘concerned’’ in—
(i) the second sentence of subsection
(a)(1);
(ii) the second sentence of subsection
(a)(2);
(iii) the sentence following subparagraph
(B) in subsection (b)(1);
(iv) the second sentence of subsection
(b)(2); and
(v) subsection (d)(1); and
(H) by redesignating subsections (d), (e), (f),
(g), and (h) as subsections (c), (d), (e), (f), and (g),
respectively.
(5) Section 1737 of title 10, United States Code, is
amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking out ‘‘an
Acquisition Corps’’ and inserting in lieu thereof
‘‘the Acquisition Corps’’; and
(ii) in paragraph (5), by striking out ‘‘, or
a principal deputy to a director of contracting’’
and all that follows through ‘‘Department of
Defense’’ and inserting in lieu thereof ‘‘or a
principal deputy to a director of contracting’’;
and
(B) by striking out subsection (c) and inserting
in lieu thereof the following:
‘‘(c) WAIVER.—(1) The Secretary of Defense may
waive, on a case-by-case basis, the requirements estab-
lished under this subchapter with respect to the assign-
ment of an individual to a particular critical acquisition
position. Such a waiver may be granted only if unusual
circumstances justify the waiver or if the Secretary deter-
mines that the individual’s qualifications obviate the need
for meeting the education, training, and experience re-
quirements established under this subchapter.
‘‘(2) The Secretary shall act through the Under Sec-
retary of Defense for Acquisition and Technology in exer-
cising the authority provided in paragraph (1). The au-
thority to grant waivers under this subsection may be dele-
gated by the Under Secretary only to the Director of Ac-
quisition Education, Training, and Career Development.’’.
(d) 
EDUCATION
AND
TRAINING.—(1) 
Section
1741(c) of title 10, United States Code, is amended to
read as follows:
‘‘(c) PROGRAMS.—The Under Secretary shall estab-
lish and implement the education and training programs
authorized by this subchapter.’’.
(2) Section 1742 of such title is amended by striking
out ‘‘require that each military department’’.
(3) Section 1743 of such title is amended in the first
sentence by striking out ‘‘require that the Secretary of
each military department’’.
(e) GENERAL MANAGEMENT.—(1) Section 1761(a)
of title 10, United States Code, is amended by striking
out ‘‘prescribe regulations to ensure that the military de-
partments and Defense Agencies’’.
(2) Section 1762(c) of such title is amended—
(A) by striking out the parenthetical material in
the matter above paragraph (1);
(B) in paragraph (4), by striking out ‘‘an ac-
quisition corps’’ in subparagraphs (A) and (B) and
inserting in lieu thereof ‘‘the Acquisition Corps’’;
and
(C) in paragraph (14), by striking out ‘‘and the
performance of each military department’’.
(3) Section 1763 of such title is amended by striking
out the second sentence.
SEC. 223. PROCUREMENT PROCEDURES GENERALLY.
Chapter 137 of title 10, United States Code, is
amended as follows:
(1) Section 2305(d) is amended—
(A) in the first sentence of paragraph
(1)(A), by striking out ‘‘shall ensure that,’’ and
all that follows through ‘‘the head of an agen-
cy’’ and inserting in lieu thereof ‘‘, in preparing
a solicitation for the award of a development
contract for a major system, shall’’;
(B) in the first sentence of paragraph
(2)(A), by striking out ‘‘shall ensure that,’’ and
all that follows through ‘‘the head of an agen-
cy’’ and inserting in lieu thereof ‘‘, in preparing
a solicitation for the award of a production con-
tract for a major system, shall’’;
(C) by striking out ‘‘the head of the agen-
cy’’ each place it appears and inserting in lieu
thereof ‘‘the Secretary’’; and
(D) by striking out ‘‘the head of an agen-
cy’’ each place it appears and inserting in lieu
thereof ‘‘the Secretary of Defense’’.
(2) Section 2306b is amended—
(A) in subsection (b)(1), by striking out
‘‘for the agency or agencies under the jurisdic-
tion of such official’’; and
(B) in subsection (j), by striking out ‘‘in-
struct the Secretary of the military department
concerned to’’.
(3) Section 2307 is amended—
(A) in subsection (g), by striking out ‘‘Sec-
retary of the Navy’’ each place it appears and
inserting in lieu thereof ‘‘Secretary of Defense’’;
and
(B) in subsection (h)(7), by striking out
the second sentence.
(4) Section 2311 is amended in subsection
(a)—
(A) by inserting ‘‘(1)’’ after ‘‘IN GEN-
ERAL.—’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) The Secretary of Defense may delegate any au-
thority of the Secretary under this chapter only to—
‘‘(A) the Deputy Secretary of Defense, who may
successively delegate such authority only to the
Under Secretary of Defense for Acquisition and
Technology;
‘‘(B) the Under Secretary of Defense for Acqui-
sition and Technology; or
‘‘(C) any acquisition program executive officer
or acquisition program manager of the Defense Re-
search, Development, and Acquisition Agency.’’.
(5) Section 2318(a) is amended by striking out
‘‘Defense Logistics Agency’’ each place it appears
and inserting in lieu thereof ‘‘Defense Research, De-
velopment, and Acquisition Agency’’.
(6) Section 2320(b) is amended—
(A) in the matter above paragraph (1), by
striking out ‘‘an agency named in section 2303
of this title’’ and inserting in lieu thereof ‘‘the
Department of Defense’’; and
(B) in paragraph (9), by striking out ‘‘the
head of the agency to withhold’’ and inserting
in lieu thereof ‘‘the withholding of’’.
(7) Section 2323(e)(1)(A)(iii) is amended by
striking out ‘‘military departments, Defense Agen-
cies,’’ and inserting in lieu thereof ‘‘Department of
Defense’’.
(8) Section 2324 is amended—
(A) in subsection (e)(3)(A), by striking out
the matter above clause (i) and inserting in lieu
thereof the following:
‘‘(A) Pursuant to regulations prescribed by the Sec-
retary of Defense and subject to the availability of appro-
priations, the Secretary may waive the application of the
provisions of subparagraphs (M) and (N) of paragraph (1)
to a covered contract (other than a contract to which para-
graph (2) applies) if the Secretary determines that—’’;
(B) in subsection (h)(2), by striking out
‘‘or the Secretary of the military department
concerned’’;
(C) in subsection (k)(4)—
(i) by striking out ‘‘or Secretary of
the military department concerned’’;
(ii) by striking out ‘‘or Secretary de-
termines’’ and inserting in lieu thereof
‘‘determines’’; and
(iii) by striking out ‘‘or military de-
partment’’; and
(D) by striking out subsection (l) and in-
serting in lieu thereof the following:
‘‘(l) COVERED CONTRACT DEFINED.—(1) In this sec-
tion, the term ‘covered contract’ means a contract for an
amount in excess of $500,000 that is entered into by the
head of an agency, except that such term does not include
a fixed-price contract without cost incentives or any firm
fixed-price contract for the purchase of commercial items.
(9) Section 2326 is amended—
‘‘(2) Effective on October 1 of each year that is divis-
ible by five, the amount set forth in paragraph (1) shall
be adjusted to the equivalent amount in constant fiscal
year 1994 dollars. An amount, as so adjusted, that is not
evenly divisible by $50,000 shall be rounded to the nearest
multiple of $50,000. In the case of an amount that is even-
ly divisible by $25,000 but is not evenly divisible by
$50,000, the amount shall be rounded to the next higher
multiple of $50,000.’’.
(A) by striking out ‘‘head of an agency’’
each place it appears and inserting in lieu
thereof ‘‘Secretary of Defense’’;
(B) by striking out ‘‘head of the agency’’
each place it appears and inserting in lieu
thereof ‘‘Secretary of Defense’’;
(C) in subsection (a), by striking out ‘‘mili-
tary department concerned’’ and inserting in
lieu thereof ‘‘Department of Defense’’; and
(D) in subsection (b)(4), by striking out
‘‘of that agency if such’’ and inserting in lieu
thereof ‘‘of the Department of Defense if the’’.
(10) Section 2327 is amended—
(A) in subsection (a), by striking out ‘‘The
head of an agency’’ and inserting in lieu thereof
‘‘The Secretary of Defense’’;
(B) in subsection (b), by striking out ‘‘the
head of an agency’’ and inserting in lieu thereof
‘‘the Secretary of Defense’’;
(C) in subsection (c)(1)—
(i) by striking out ‘‘the head of an
agency’’ each place it appears and insert-
ing in lieu thereof ‘‘the Secretary’’; and
(ii) by striking out ‘‘such head of an
agency’’ each place it appears and insert-
ing in lieu thereof ‘‘the Secretary’’;
(D) in subsection (c)(2), by striking out
‘‘Upon the request of the head of an agency,
the’’ and inserting in lieu thereof ‘‘The’’; and
(E) in subsection (d)—
(i) by striking out ‘‘(1)’’; and
(ii) by striking out paragraph (2).
SEC. 224. RESEARCH AND DEVELOPMENT.
Chapter 139 of title 10, United States Code, is
amended as follows:
(1) Section 2352(a) is amended in the matter
above paragraph (1)—
(A) by striking out ‘‘The Secretary of a
military department’’ and inserting in lieu
thereof ‘‘The Secretary of Defense’’; and
(B) by striking out ‘‘that military depart-
ment’’ and inserting in lieu thereof ‘‘the De-
partment of Defense’’.
(2) Section 2353 is amended—
(A) in the first sentence of subsection
(a)—
(i) by striking out ‘‘contract of a mili-
tary department’’ and inserting in lieu
thereof ‘‘Department of Defense contract’’;
and
(ii) by striking out ‘‘the Secretary of
the military department concerned’’ and
inserting in lieu thereof ‘‘the Secretary of
Defense’’; and
(B) in subsection (b)(3), by striking out
‘‘the Secretary concerned’’ and inserting in lieu
thereof ‘‘the Secretary of Defense’’.
(3) Section 2354 is amended—
(A) in subsection (a), by striking out ‘‘the
Secretary of the military department concerned,
any contract of a military department’’ and in-
serting in lieu thereof ‘‘the Secretary of
Defense, any contract of the Department of
Defense’’;
(B) in subsection (c)—
(i) by striking out ‘‘the Secretary of
the department concerned’’ and inserting
in lieu thereof ‘‘the Secretary of Defense’’;
and
(ii) by striking out ‘‘of his depart-
ment’’; and
(C) in subsection (d), by striking out ‘‘the
Secretary concerned’’ and inserting in lieu
thereof ‘‘the Secretary of Defense’’.
(4) Section 2356(a) is amended to read as
follows:
‘‘(a)(1) Except as provided in paragraph (2), the Sec-
retary of Defense may delegate any authority under sec-
tion 1584, 2353, 2354, or 2358 of this title to—
‘‘(A) the Deputy Secretary of Defense, who may
successively delegate such authority only to the
Under Secretary of Defense for Acquisition and
Technology;
‘‘(B) the Under Secretary of Defense for Acqui-
sition and Technology; or
‘‘(C) any employee of the Defense Research,
Development, and Acquisition Agency.
‘‘(2) The authority of the Secretary under section
2353(b)(3) of this title may not be delegated to a person
described in paragraph (1)(C).’’.