716 
learning, enabling such contractor to assess and 
monitor the entire supply chain of such contractor to 
identify potential vulnerabilities and security and 
noncompliance risks with respect to goods and serv-
ices provided to the Department of Defense.’’. 
(b) REPORTING.—Not later than one year after the 
date of the enactment of this Act, and annually thereafter 
until the date that is five years after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report describ-
ing each use of the authority under section 849(d) of the 
Servicemember Quality of Life Improvement and National 
Defense Authorization Act for Fiscal Year 2025 (Public 
Law 118–159; 10 U.S.C. 3241 note prec.), as added by 
subsection (a). 
SEC. 853. MODIFICATION TO ENHANCED DOMESTIC CON-
TENT REQUIREMENT FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
Section 835(c) of the National Defense Authorization 
Act for Fiscal Year 2024 (Public Law 118–31) is amended 
to read as follows: 
‘‘(c) MAJOR DEFENSE ACQUISITION PROGRAM.—In 
this section, the term ‘major defense acquisition program’ 
has the meaning given in section 4201 of title 10, United 
States Code, except that such term includes any program
717 
that meets the meaning given in such section as in effect 
on January 1, 2025.’’. 
SEC. 854. STRATEGY TO ELIMINATE SOURCING OF OPTICAL 
GLASS FROM CERTAIN NATIONS. 
(a) IN GENERAL.—The Secretary of Defense shall 
develop and implement a strategy to eliminate the reliance 
of the Department of Defense on any covered nation to 
acquire optical glass or optical systems by January 1, 
2030. 
(b) STRATEGY REQUIREMENTS.—The strategy re-
quired by subsection (a) shall— 
(1) identify the current requirements of the De-
partment of Defense for optical glass and optical 
systems and estimate the projected requirements of 
the Department for optical glass and optical systems 
through the year 2040; 
(2) identify the sources of optical glass or opti-
cal systems used to meet the current requirements 
of the Department described in paragraph (1), in-
cluding any sources of optical glass or optical glass 
systems produced in a covered nation; and 
(3) identify actions to be taken by the Secretary 
of Defense to ensure the defense industrial base is 
able to meet the needs of the Department for optical
718 
glass and optical systems without any reliance on a 
covered nation not later January 1, 2030. 
(c) IMPLEMENTATION.—Not later than 270 days 
after the date of enactment of this Act, the Secretary of 
Defense shall begin implementing the strategy required by 
subsection (a). 
(d) BRIEFING AND REPORT.— 
(1) BRIEFING.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense 
committees a briefing on the strategy required by 
subsection (a), including an identification of any 
changes to funding or policy required to eliminate 
the reliance of the Department of Defense on any 
covered to acquire optical glass or optical systems by 
January 1, 2030. 
(2) INTERIM REPORT ON IMPLEMENTATION.— 
Not later than March 15, 2027, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a report on the progress of the implementa-
tion of the strategy required by subsection (a), in-
cluding an identification of any risk to the ability of 
the Secretary to eliminate the reliance of the De-
partment of Defense on any covered nation to ac-
719 
quire optical glass or optical systems by January 1, 
2030. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘covered nation’’ means— 
(A) the Democratic People’s Republic of 
North Korea; 
(B) the People’s Republic of China; 
(C) the Russian Federation; 
(D) the Republic of Belarus; and 
(E) the Islamic Republic of Iran. 
(2) The term ‘‘optical glass’’ means glass used 
in optical lenses, prisms, or mirrors. 
(3) The term ‘‘optical system’’ means an ar-
rangement of optical components, including optical 
glass, that manipulates light to produce a specific 
outcome. 
SEC. 855. VOLUNTARY REGISTRATION OF COMPLIANCE 
WITH COVERED SOURCING REQUIREMENTS 
FOR COVERED PRODUCTS. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish and maintain a publicly available online repository 
of information provided by an offeror related to the con-
formance of a covered product with covered sourcing re-
quirements.
720 
(b) REGISTRATION AND ATTESTATION PROCESS.— 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall establish a proc-
ess under which an offeror may voluntarily submit to the 
Secretary an attestation relating to the compliance of a 
covered product with a covered sourcing requirement. 
Such process shall— 
(1) be accessible online; 
(2) require an offeror to acknowledge liability 
for making a false attestation in accordance with 
section 3729 of title 31, United States Code; and 
(3) enable an offeror to register a covered prod-
uct with the Secretary of Defense by providing— 
(A) a unique product identifier sufficient 
to distinguish the covered product to be reg-
istered from a similar covered product; 
(B) a national stock number (if available), 
a description of the covered product, or other 
information related to the form, fit, or function 
of the covered product; and 
(C) an attestation, including relevant docu-
mentation, of the compliance of a covered prod-
uct with one or more covered sourcing require-
ments.
721 
(c) PROOF OF REGISTRATION.—The Secretary shall 
issue to an offeror that registers a covered product in ac-
cordance with the process established under subsection 
(b)(3) a proof of registration associated with a the unique 
product identifier of the covered product. The proof of reg-
istration may be used— 
(1) by the offeror in sales and marketing mate-
rials associated with the registered covered product; 
or 
(2) by a prime contractor that uses such reg-
istered covered product as a part or component of 
an end item. 
(d) AVAILABILITY OF INFORMATION.— 
(1) COMPLIANCE
INFORMATION.—The Sec-
retary shall make available the information nec-
essary to enable offerors to assess the compliance of 
a covered product with a covered sourcing require-
ment. 
(2) RESOURCES.—The Secretary shall ensure 
that an eligible entity has adequate resources to 
train offerors about the requirements of this section 
and to assist an offeror with the registration and at-
testation process established under subsection (b). 
(e) ENCOURAGING REGISTRATION OF PRODUCTS.— 
The Secretary shall establish policies and procedures to
722 
encourage offerors to register covered products. These 
policies and procedures shall ensure that— 
(1) offerors are incentivized to disclose any non-
compliance with the requirements of this section; 
(2) with respect to any disclosure made under 
paragraph (1), that such offeror is provided with in-
formation and assistance to determine the actions 
required to remedy such noncompliance in order to 
meet the criteria to register the product concerned; 
and 
(3) an offeror making such a disclosure will re-
ceive a referral to the appropriate programs or of-
fices of the Department of Defense that are respon-
sible for strengthening the defense industrial base, 
promoting domestic industry, and accelerating pri-
vate investment in supply chain technologies that are 
critical for national security. 
(f) USE
OF SUPPLY CHAIN ILLUMINATION.—The 
Secretary shall encourage an offeror to implement and use 
supply chain illumination (as defined in section 849 of the 
National Defense Authorization Act for Fiscal Year 2025, 
as amended by section 852 of this Act) to assist in meet-
ing the registration and attestation requirements estab-
lished under subsection (b). 
(g) DEFINITIONS.—In this section:
723 
(1) The term ‘‘covered product’’ means— 
(A) a good offered for purchase to the Sec-
retary of Defense; and 
(B) subject to a covered sourcing require-
ment. 
(2) The term ‘‘covered sourcing requirement’’ 
means a requirement under any of the following: 
(A) Section 4872 of title 10 United States 
Code. 
(B) Section 4863 of title 10, United States 
Code. 
(C) Section 4862 of title 10, United States 
Code. 
(D) Section 4864 of title 10, United States 
Code. 
(E) Chapter 83 of title 41, United States 
Code. 
(F) Section 846 of the National Defense 
Authorization Act for Fiscal Year 2011 (10 
U.S.C. 4864 note). 
(G) Section 1211 of the National Defense 
Authorization Act for Fiscal Year 2006 (10 
U.S.C. 4651 note prec.). 
(H) Section 225.7004-5 of the Department 
of Defense Supplement to the Federal Acquisi-
724 
tion Regulation (relating to restrictions on pro-
curement of welded shipboard anchor and moor-
ing chain). 
(I) Section 225.7011 of the Department of 
Defense Supplement to the Federal Acquisition 
Regulation (relating to restrictions on procure-
ment of carbon, alloy, or armor steel plates). 
(J) Section 225.7012 of the Department of 
Defense Supplement to the Federal Acquisition 
Regulation (relating to restrictions on procure-
ment of supercomputers). 
(3) The term ‘‘eligible entity’’ means an eligible 
entity carrying out activities pursuant to a procure-
ment technical assistance program funded under 
chapter 388 of title 10, United States Code. 
SEC. 856. ACCELERATION OF QUALIFICATION OF COMPLI-
ANT SOURCES. 
(a) ESTABLISHMENT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall establish in the Defense In-
dustrial Resilience Consortium established under 
section 1842 a working group for the exchange of 
information about compliant materials and to accel-
erate the qualification of such materials for use by
725 
the Department of Defense and the integration of 
such materials into the supply chains of contractors 
of the Department of Defense. 
(2) MEMBERSHIP.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the working group shall con-
sist of members of the Defense Industrial Resil-
ience Consortium with expertise or interest in— 
(i) the qualification and acceptance of 
materials, parts, components and end 
items by the Department of Defense; 
(ii) supply chain management; or 
(iii) supply chain illumination. 
(B) EXCLUSION.—The Secretary may ex-
clude from participation in such working group 
any individual or entity that— 
(i) is headquartered within, owned or 
controlled by, or subject to the influence of 
a covered nation; 
(ii) is functioning as the agent of any 
foreign State; or 
(iii) is otherwise determined by the 
Secretary to be a significant threat to the 
national security interests of the United 
States.
726 
(3) RESPONSIBILITIES.—The working group 
shall— 
(A) establish processes for exchange of in-
formation about compliant materials among 
consortium members, procurement agents of the 
Department of Defense, and contractors of the 
defense industrial base, while maintaining ap-
propriate safeguards of commercially propri-
etary information; 
(B) develop processes and procedures to 
streamline identification, testing, and qualifica-
tion of compliant sources and compliant mate-
rials; 
(C) seek to reduce the unnecessary applica-
tion of requirements that specific to a single 
Armed Force for identification, testing, and 
qualification of compliant sources and compli-
ant material; 
(D) provide a forum for the Army, Navy, 
Air Force, Marine Corps, and Space Force and 
other elements of the Department of Defense to 
share technical and supply chain data related to 
requirements for covered materials; 
(E) identify compliant sources at each step 
of the supply chain, to the extent that such sup-
727 
ply chains are subject to subchapter III of 
chapter 385 of title 10, United States Code; 
(F) at least once a quarter, publish for the 
members of the consortium and for the Under 
Secretary of Defense for Acquisition and 
Sustainment, a list of compliant sources for 
each critical material, including a general de-
scription of what step of the supply chain in 
which each compliant source is participating, if 
any; 
(G) develop and recommend processes to 
enable the Department of Defense to rapidly 
identify, qualify, and integrate compliant mate-
rials into programs of the Department at scale; 
(H) seek to reduce future requirements for 
critical materials in defense systems by encour-
aging contractors of the Department of Defense 
to design and develop systems that use commer-
cially available critical materials, when such 
materials are capable of meeting mission needs; 
(I) seek input from small and nontradi-
tional contractors and ensure the working 
group considers the unique attributes of such 
businesses in carrying out the responsibilities of 
this subsection;
728 
(J) develop and provide recommendations 
to reduce impediments or disincentives for a 
supplier of an end item to the Department of 
Defense to revise a supply chain agreement or 
other arrangement, to eliminate the reliance of 
the supplier on noncompliant sources; 
(K) any other matters assigned to the 
working group by the Secretary; and 
(L) provide the Secretary with timely rec-
ommendations developed pursuant to this sec-
tion. 
(b) REPLACEMENT
OF EXISTING NONCOMPLIANT 
PARTS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall develop and implement guidance to en-
sure that critical materials from noncompliant 
sources that are present in covered systems of the 
Department of Defense are identified and replaced 
as rapidly as practicable with compliant materials. 
(2) REQUIREMENTS.—The guidance required 
by (1) shall— 
(A) ensure that a supplier of an end item 
is actively managing the supply chain, and shall 
address impediments or disincentives for the
729 
supplier to revise a supply chain agreement or 
other arrangement to eliminate the supplier’s 
reliance on noncompliant sources; 
(B) require the use of compliant sources 
included on the list required by paragraph 
(a)(3)(F), where appropriate; 
(C) require use of commercial qualification 
processes to the maximum extent practicable in 
determining whether a new supplier is capable 
of meeting defense requirements; 
(D) minimize the number of qualification 
events required, including minimizing the use of 
real-world testing, when replacing components 
or raw materials with functionally identical 
commercial offerings; 
(E) provide for waiver of defense-unique 
qualification 
requirements, 
including 
oper-
ational test and evaluation processes, unless 
compliance with such requirements is deter-
mined to be essential by the head of the con-
tracting activity: and 
(F) prohibit additional testing of the end 
item if a component or subcomponent has 
shown to have substantially similar or identical 
performance after replacement of a noncompli-
730 
ant critical material with a compliant critical 
material, except where the service acquisition 
executive determines otherwise. 
(3) SAFE HARBOR.—The Secretary of Defense 
shall deem that any acquisition of a critical material, 
by the Department, a contractor to the Department, 
or a subcontractor at any tier, from a supplier of 
critical materials that is included on the list required 
by paragraph (a)(3)(F), is in compliance with the 
requirements of subchapter III of chapter 385 of 
this title, if— 
(A) the supplier of a critical material was 
on the most recent such list of compliant 
sources for such critical material at the time 
the acquisition contract or other agreement was 
entered into; 
(B) the supplier is included on such a list 
not less frequently than once every two years 
during the period beginning on the date on 
which such contract or other agreement is en-
tered into and ending on the date on which 
such contract or other agreement expires or ter-
minates; and 
(C) it would have created an unreasonable 
hardship, including an interruption of needed
731 
supplies or significantly different cost, for the 
acquiring entity to switch suppliers to a compli-
ant source during the time between the signing 
of the contract or other agreement and the time 
of delivery under such contract or other agree-
ment. 
(4) RESPONSIBLE
INDIVIDUAL.—The service 
acquisition executive for each service or agency shall, 
for each program under supervision of such service 
acquisition executive, identify the individual respon-
sible for establishing the statement of work and 
qualification requirements associated with the re-
placement of components or raw materials critical 
materials from noncompliant sources in covered sys-
tems as required by this section. 
(5) COMMERCIAL ITEMS.—The Secretary shall 
ensure that the guidance required by this subsection 
applies to commercial products and commercial off- 
the-shelf items to the extent that the requirements 
of chapter 385 of title 10, United States Code, apply 
to commercial products and commercial off-the-shelf 
items. 
(c) ACCESS TO MATERIALS.—Notwithstanding sec-
tion 4872(a) of title 10, United States Code, the Depart-
ment of Defense is authorized to procure a covered mate-
732 
rial stockpiled in an allied or partner nation if such cov-
ered material has been under uninterrupted control by an 
entity in such allied or partner nation since 2000. 
(d) FUNDING ESTIMATES.—Not later than five days 
after the date on which the Secretary of Defense submits 
to Congress the materials in support of the budget sub-
mitted by the President to Congress under section 1105 
of title 31, United States Code, for a fiscal year, the 
Under Secretary of Defense for Acquisition and 
Sustainment, in collaboration with the service acquisition 
executives of the military departments, shall submit to the 
congressional defense committees a comprehensive esti-
mate of the funds necessary to provide for the qualifica-
tion and integration of compliant sources into the covered 
systems of each military department. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘compliant country’’ means a 
country that is not a covered nation. 
(2) The term ‘‘compliant source’’ means an en-
tity engaged in the production, manufacture, or dis-
tribution of a critical material that is compliant with 
the requirements of subchapter III of chapter 385 of 
title 10, United States Code.
733 
(3) The term ‘‘compliant material’’ means crit-
ical material that is sourced from a compliant 
source. 
(4) The term ‘‘covered nation’’ has the meaning 
given such term in section 4872(h) of title 10, 
United States Code (as redesignated by this Act). 
(5) The term ‘‘covered system’’ means an end 
item that is currently in production or has been de-
livered to the Department of Defense. 
(6) The term ‘‘critical material’’ means a mate-
rial subject to sourcing restrictions under subchapter 
III of chapter 385 of title 10, United States Code. 
(7) The term ‘‘end item’’ has the meaning given 
such term in section 4863 of title 10, United States 
Code. 
(8) The term ‘‘service acquisition executive’’ 
has the meaning given such term in section 101(a) 
of title 10, United States Code. 
(9) The term ‘‘working group’’ means the work-
ing group established under subsection (a). 
SEC. 857. ENHANCED SECURITY STRATEGY FOR PRIVATE 
FIFTH GENERATION INFORMATION AND COM-
MUNICATIONS CAPABILITIES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense
734 
shall require a contractor for a procurement related to 
fifth-generation wireless technology for private networks 
on military installations to provide the information de-
scribed in subsection (b) to promote enhanced wireless 
network security requirements, including supply chain risk 
management. 
(b) INFORMATION DESCRIBED.—The information de-
scribed in this subsection is as follows: 
(1) A hardware bill of materials for a procure-
ment described in subsection (a). 
(2) A description of the implementation and 
operational use of zero trust principles and capabili-
ties for such procurement. 
(c) PRIORITIZATION.—With respect to a procurement 
described in subsection (a), the Secretary shall prioritize 
the use of private networks that employ Open-RAN ap-
proaches, including cloud-native capabilities. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘military installation’’ has the 
meaning given in section 2801 of title 10, United 
States Code. 
(2) The term ‘‘Open-RAN’’ means section 9202 
of title XCII of the National Defense Authorization 
Act for Fiscal Year 2021.
735 
SEC. 858. PREFERENCE FOR DOMESTIC PROCUREMENT OF 
PROFESSIONAL SERVICES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall revise the Department of Defense Supplement to the 
Federal Acquisition Regulation— 
(1) to require, to the maximum extent prac-
ticable and consistent with the interests of national 
security, preference for procurement of professional 
services from offerors that are United States compa-
nies; and 
(2) to allow the Secretary discretion to waive 
the requirements of paragraph (1) if the Secretary 
determines that— 
(A) compliance with such requirements 
would result in the Department of Defense fail-
ing to meet an urgent operational requirement; 
or 
(B) no United States company or quali-
fying joint venture is capable of fulfilling the re-
quirements of the contract in a timely or cost- 
effective manner. 
(b) WAIVER REQUIREMENTS.—A waiver described in 
subsection (a)(2) shall be issued in writing, shall include 
a justification for such issuance, and shall be submitted
736 
to the congressional defense committees not later than 30 
days after such issuance. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘United States company’’ means 
an entity that— 
(A) is organized under the laws of a State, 
territory, or possession of the United States or 
the District of Columbia; 
(B) has its principal place of business in 
the United States; and 
(C) is not directly or indirectly owned or 
controlled by a foreign entity 
(2) The term ‘‘professional services’’ includes 
services in the fields of engineering, architecture, de-
sign, environmental consulting, financial consulting, 
program management, legal advisory, and other ex-
pert services as defined in the Federal Acquisition 
Regulation. 
(3) The term ‘‘qualifying joint venture’’ means 
a joint venture in which a United States company 
holds an ownership interest greater than 50 percent. 
SEC. 859. SHIPPING CONTAINER SUPPLY CHAIN. 
(a) FINDINGS.—The Congress finds the following: 
(1) House Report 118–301 accompanying the 
National Defense Authorization Act for Fiscal Year
737 
2024 (Public Law 118–31) directed the Secretary of 
the Army, in coordination with the Commanding 
General, Army Materiel Command and the Assistant 
Secretary of the Army for Acquisition, Logistics, 
and Technology to provide a briefing on the costs 
and estimated funding profile as it relates to the or-
ganic industrial base modernization strategy, and fa-
cility efforts required to support opportunities for 
organic industrial base augmentation at Blue Grass 
Army Depot in Kentucky. 
(2) The briefing was directed to explore Blue 
Grass Army Depot as a potential site for the pro-
duction of metal shipping containers. 
(3) China produces most shipping containers 
and the Department of Defense sources nearly all 
containers from Asia or assembles container kits in 
the United States from foreign-producers. 
(4) Establishing a domestic source for metal 
shipping containers would reduce reliance on foreign 
sources. 
(5) The reliance on foreign adversary nations 
for standard and specialty shipping containers pre-
sents a national security risk, particularly in times 
of crisis.
738 
(6) The Department of Defense must have ac-
cess to domestically produced shipping containers to 
meet operational readiness and logistical require-
ments. 
(7) The defense industrial base must be 
strengthened to ensure secure supply chains and un-
interrupted access to critical shipping components. 
(8) Establishing domestic production facilities 
will create jobs, improve economic resilience, and en-
hance national security. 
(9) Domestic production of shipping containers 
is essential to national security and economic resil-
ience. 
(10) To ensure the integrity of the defense in-
dustrial base, shipping containers procured under 
this Act should be manufacturing in the United 
States by domestic entities using domestically pro-
duced steel and other critical materials and compo-
nents. 
(b) NATIONAL SECURITY ASSESSMENT.— 
(1) ASSESSMENT OF FOREIGN RELIANCE.—Not 
later than 180 days after the enactment of this Act, 
the Secretary of Defense shall submit to Congress 
an assessment on the national security implications 
of the reliance of the United States on foreign ad-
739 
versary countries for the production of standard and 
specialty shipping containers. 
(2) ASSESSMENT CONTENTS.—The assessment 
required by paragraph (1) shall include— 
(A) a detailed evaluation of the ability of 
the Department of Defense to acquire standard 
and specialty shipping containers from sources 
other than sources located in covered nations 
(as defined in section 4872 of title 10, United 
States Code); 
(B) an identification of the barriers to the 
acquisition of standard and specialty shipping 
contains from domestic sources and rec-
ommendations to mitigate such barriers; and 
(C) a timeline for transitioning the Depart-
ment to acquiring standard and specialty ship-
ping containers from sources other than sources 
located in foreign adversary. 
(c) ESTABLISHMENT OF DOMESTIC PRODUCTION CA-
PABILITY.— 
(1) PRIMARY PRODUCTION FACILITY.— 
(A) IN GENERAL.—Not later than Decem-
ber 31, 2028, the Secretary of Defense shall de-
velop a requirement to establish a facility for
740 
the production of standard shipping containers 
at a depot of the Army that— 
(i) has a consolidated shipping center; 
(ii) is part of the organic industrial 
base; and 
(iii) is located in the United States. 
(B) COORDINATION.—The Secretary of 
Defense shall seek to enter into a public-private 
partnership to establish and operate the facility 
established pursuant to the requirement devel-
oped under subparagraph (A). 
(2) SECONDARY
PRODUCTION
FACILITY.—Not 
later than December 31, 2028, the Secretary shall 
evaluate locations to establish a second facility for 
the production of standard shipping containers that 
is located in the United States. 
(d) READINESS AND LOGISTICAL REQUIREMENTS.— 
(1) STANDARD SHIPPING CONTAINS.—The Sec-
retary of Defense shall quantify the yearly demand 
and usage by the Department of Defense for the 
eight standard shipping container types, including— 
(A) bill of materials verification; and 
(B) model and drawing verification. 
(2) SPECIALTY SHIPPING CONTAINS.—The Sec-
retary of Defense shall assess the yearly readiness
741 
and logistical requirements of the Department of 
Defense for specialty shipping containers by weapons 
system. 
(3) INTEGRATION OF SENSOR AND COMMUNICA-
TION SYSTEMS.— 
(A) IN
GENERAL.—Not later than 180 
days after the enactment of this Act, the Sec-
retary of Defense shall assess and submit to 
Congress a report on the potential benefits of 
incorporating into the design and production of 
standard and specialty shipping containers used 
by the Department of Defense a diverse set of 
communications equipment and sensors that are 
capable of providing real-time data on location, 
contents, usage, and other critical information 
relevant to national defense purposes. 
(B) REPORT CONTENTS.—The report re-
quired by subparagraph (A) shall include— 
(i) an assessment of the feasibility of 
embedding in standard and specialty ship-
ping containers used by the Department of 
Defense the communications equipment 
and sensors described in such subpara-
graph, including sensors integrated into
742 
container flooring, for satellite-based track-
ing and monitoring; 
(ii) recommendations for collaboration 
with private industry partners to develop 
and implement in such shipping containers 
such communications equipment and sen-
sors; and 
(iii) an evaluation of how such com-
munications equipment and sensors embed-
ded in such shipping containers could en-
hance the security and resilience of the 
supply chain of the Department. 
(e) INCENTIVIZING COMMERCIAL INDUSTRIAL BASE 
PARTICIPATION.— 
(1) INDUSTRY PARTICIPATION.—Not later than 
180 days after the date of the enactment of this Act, 
the Secretary of Defense, in consultation with the 
Secretary of Commerce, shall develop initiatives to 
encourage the production of shipping containers for 
both defense and commercial use by entities other 
than those located in covered nations (as defined in 
section 4872 of title 10, United States Code). 
(2) COMMON AND UNIQUE COMPONENT IDENTI-
FICATION.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of De-
743 
fense shall assess and identify common and unique 
components necessary for standard and specialty 
shipping containers to streamline the production and 
enhance the cost efficiency of such shipping con-
tainers. 
(f) REPORTING.—Not later than 60 days after the 
end of the first fiscal year ending after the date of the 
enactment of this Act, and not later than 60 days after 
the end of each fiscal year thereafter, the Secretary of De-
fense shall submit to Congress a report detailing the 
progress on the establishment of domestic facilities for the 
production of shipping containers under subsection (c)(1). 
(g) TERMINATION.—This section shall terminate on 
the date on which the Secretary of Defense submits to 
Congress a certification that the sufficient standard and 
specialty shipping contains are available solely from do-
mestic sources to meet the national security needs of the 
United States. 
SEC. 860. ASSESSMENT OF CRITICAL DEFENSE MINERAL 
SUPPLY CHAIN VULNERABILITIES. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct an assessment of the supply 
chains of critical defense minerals for the defense indus-
trial base to identify vulnerabilities in such supply chains.
744 
(b) REPORT.—Not later than 365 days after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall submit to Committees on Armed 
Services of the House of Representatives and Senate a re-
port on the findings of the assessment conducted under 
subsection (a), including— 
(1) an identification of each source of each crit-
ical defense mineral described in such subsection; 
(2) an evaluation of the barriers to expanding 
the domestic capacity for mining and producing such 
critical defense minerals; and 
(3) recommendations for Congress and appro-
priate Federal agencies to incentivize the domestic 
production of such critical defense minerals. 
(c) CRITICAL DEFENSE MINERALS DEFINED.—In 
this section, the term ‘‘critical defense mineral’’ means a 
mineral that is essential to manufacturing to supply the 
military, industrial, and essential civilian needs of the 
United States for national defense, including rare earth 
elements, lithium, cobalt, and nickel. 
SEC. 860A. ASSESSMENT OF MILITARY MEDICAL SUPPLY 
CHAINS. 
(a) IN GENERAL.—The Secretary of Defense shall 
conduct an assessment of the vulnerabilities to supply 
chains for the medical supplies and equipment used by the
745 
Department of Defense, included a detailed assessment of 
the reliance of the Department on sources located in China 
for active pharmaceutical ingredients and medical devices. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
House of Representatives and the Senate a report on the 
findings of the assessment conducted under subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘active pharmaceutical ingre-
dient’’ has the meaning given such term section 
744A of the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 379j–41). 
(2) The term ‘‘medical device’’ has the meaning 
given the term ‘‘device’’ in section 201(h) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321(h)). 
SEC. 860B. PERMANENT MAGNET TRACEABILITY PILOT 
PROGRAM. 
(a) IN GENERAL.—Not later than September 30, 
2026, the Secretary of Defense shall establish a pilot pro-
gram under which the Department of Defense shall vali-
date the sources of rare earth elements and critical mate-
rials used in permanent magnets used by the Department, 
including sources of recycled rare earth elements and crit-
746 
ical materials used in such permanent magnets, to ensure 
the accuracy of the information reported by contractors 
providing such permanent magnets to the Department and 
the integrity of the supply chains for such permanent 
magnets against foreign adversaries. 
(b) SUNSET.—The pilot program established under 
subsection (a) shall terminate on September 30, 2029. 
(c) REPORT.—Not later than 180 days after Sep-
tember 30, 2029, the Secretary of Defense shall submit 
to Congress a report on the results of the pilot program 
required under subsection (a), including the recommenda-
tions of the Secretary whether the pilot program should 
be continued or expanded. 
(d) CRITICAL MATERIAL DEFINED.—In this section, 
the term ‘‘critical material’’ means a material, other than 
a rare earth element, used in permanent magnets used by 
the Department of Defense that the Secretary of Defense 
identifies as necessary to meet the requirements of the De-
partment. 
SEC. 860C. APPLICABILITY OF BERRY AMENDMENT EXCEP-
TIONS TO CERTAIN SEAFOOD PURCHASES. 
Section 4862 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section:
747 
‘‘(l) CERTAIN SEAFOOD PURCHASES.—The excep-
tions in subsections (c) through (h) of this section shall 
not apply with respect to procurement of any fish, shell-
fish, or seafood product.’’. 
SEC. 860D. ASSESSMENT OF CRITICAL INFRASTRUCTURE 
OWNED BY THE DEPARTMENT OF DEFENSE 
DEPENDENT ON FOREIGN MATERIALS OR 
COMPONENTS. 
(a) PRIORITIZED LIST OF HIGH-RISK SYSTEMS.— 
Not later than 270 days after the date of the enactment 
of this Act, the Secretary of Defense shall— 
(1) develop and maintain a classified and 
prioritized list of high-risk critical infrastructure 
owned by the Department of Defense that rely on 
materials or components the origin of which is a for-
eign country of concern; and 
(2) conduct a risk assessment of the materials 
or components included in the list under paragraph 
(1). 
(b) CRITICAL
INFRASTRUCTURE
VULNERABILITY 
ANALYSIS AND ASSESSMENT.—The risk assessment under 
subsection (a) shall include— 
(1) an evaluation of the dependence of high-risk 
critical infrastructure owned by the Department of
748 
Defense that on materials or components the origin 
of which is a foreign country of concern; 
(2) an evaluation of vulnerability to supply 
chain disruption during a national emergency to 
high-risk critical infrastructure owned by the De-
partment of Defense, including industrial control 
systems; 
(3) an assessment of the resilience and capacity 
of high-risk critical infrastructure owned by the De-
partment of Defense to support mission-critical op-
erations and readiness during a national emergency; 
(4) an identification of the location of design, 
manufacturing, and packaging facilities for materials 
or components described in subsection (a)(1); and 
(5) an assessment of the manufacturing capac-
ity of the United States to replace materials or com-
ponents described in subsection (a)(1), including— 
(A) gaps in domestic manufacturing capa-
bilities, including nonexistent, extinct, threat-
ened, and single point-of-failure capabilities; 
(B) supply chains with single points of fail-
ure and limited resiliency; and 
(C) economic factors, including global com-
petition, threaten the viability of domestic man-
ufacturers.
749 
(c) BRIEFING REQUIRED.—Not later than 120 days 
after date of completion of the risk assessment required 
by subsection (a), and biennially thereafter, the Secretary 
of Defense shall provide to the congressional defense com-
mittees a classified briefing that includes— 
(1) findings on the traceability and provenance 
of materials or components described in subsection 
(a)(1); 
(2) strategies to strengthen the resilience and 
readiness of critical infrastructure owned by the De-
partment of Defense; and 
(3) recommendations for critical infrastructure 
supply chain resilience and manufacturing activities, 
including— 
(A) modifications to procurement policies 
to reduce reliance on high-risk supply chains; 
and 
(B) other matters the Secretary deems ap-
propriate. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘critical infrastructure’’ means 
any system or asset so vital to the United States 
that the degradation or destruction of such system 
or asset would have a debilitating impact on national
750 
security, including economic security and public 
health or safety. 
(2) The term ‘‘foreign country of concern’’ 
means the People’s Republic of China, the Demo-
cratic People’s Republic of Korea, the Russian Fed-
eration, the Islamic Republic of Iran, or any other 
country determined to be a country of concern by 
the Secretary of State. 
SEC. 860E. STRATEGY TO ELIMINATE SOURCING OF COM-
PUTER DISPLAYS FROM CERTAIN NATIONS. 
(a) IN GENERAL.—The Secretary of Defense shall 
develop and implement a strategy to eliminate the reliance 
of the Department of Defense on any covered nation to 
acquire computer displays by January 1, 7 2030. 
(b) STRATEGY REQUIREMENTS.—The strategy re-
quired by subsection (a) shall— 
(1) identify the current requirements of the De-
partment of Defense for computer displays and esti-
mate the projected requirements of the Department 
for computer displays through the year 2040; 
(2) identify the sources of computer displays 
used to meet the current requirements of the De-
partment described in paragraph (1), including any 
sources of computer displays produced in a covered 
nation; and
751 
(3) identify actions to be taken by the Secretary 
of Defense to ensure the defense industrial base is 
able to meet the needs of the Department for com-
puter displays without any reliance on a covered na-
tion not later January 1, 2030. 
(c) IMPLEMENTATION.—Not later than 270 days 
after the date of enactment of this Act, the Secretary of 
Defense shall begin implementing the strategy required by 
subsection (a). 
(d) BRIEFING AND REPORT.— 
(1) BRIEFING.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense 
committees a briefing on the strategy required by 
subsection (a), including an identification of any 
changes to funding or policy required to eliminate 
the reliance of the Department of Defense on any 
covered nation to acquire computer displays by Jan-
uary 1, 2030. 
(2) INTERIM REPORT ON IMPLEMENTATION.— 
Not later than March 15, 2027, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a report on the progress of the implementa-
tion of the strategy required by subsection (a), in-
cluding an identification of any risk to the ability of
752 
the Secretary to eliminate the reliance of the De-
partment of Defense on any covered nation to ac-
quire computer displays by January 1, 2030. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘covered nation’’ means— 
(A) the Democratic People’s Republic of 
North Korea; 
(B) the People’s Republic of China; 
(C) the Russian Federation; 
(D) the Republic of Belarus; and 
(E) the Islamic Republic of Iran. 
(2) The term ‘‘computer display’’ means a de-
vice that receives a digital output from a computer 
and visually displays that output as an electronic 
image. 
SEC. 860F. CRITICAL AND RARE EARTH MINERAL SUPPLY 
CHAIN STUDY. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Deputy Assistant 
Secretary of Defense for Industrial Base Resilience, in co-
ordination with the Secretary of the Interior, Secretary of 
Energy, and the Director of the United States Geological 
Survey, shall submit to the Committees on Armed Services 
and Natural Resources of the House of Representatives
753 
a report on the feasibility of reshoring domestic critical 
and rare earth mineral mining and production. 
(b) CONTENTS.—The report required under sub-
section (a) shall include— 
(1) an identification of the strategic and critical 
materials used by the Department of Defense; 
(2) an assessment of the reliability of the do-
mestic supply chains for critical and rare earth min-
erals and the reliance for such critical and rare 
earth minerals on sources that are located in Peo-
ple’s Republic of China or related to or subject to 
the control of People’s Republic of China or the Chi-
nese Communist Party; 
(3) an identification of the domestic and inter-
national sources for the strategic and critical mate-
rials identified under paragraph (1); 
(4) an identification of domestic locations with 
existing commercial manufacturing interest that are 
verified as containing large supplies of strategic and 
critical materials identified under paragraph (1); 
(5) a strategy to reshore critical and rare earth 
mineral production to the United States; and 
(6) a plan to implement the strategy required 
by paragraph (5), including a timeline for such im-
plementation.
754 
(c) STRATEGIC
AND
CRITICAL
MATERIALS
DE-
FINED.—In this section, the term ‘‘strategic and critical 
materials’’ has the meaning given such term in section 12 
of the Strategic and Critical Materials Stock Piling Act 
(50 U.S.C. 98h-3). 
Subtitle E—Prohibitions and 
Limitations on Procurement 
SEC. 861. REQUIREMENTS RELATING TO LONG-TERM CON-
CESSIONS AGREEMENTS WITH CERTAIN RE-
TAILERS. 
(a) IN GENERAL.—Chapter 363 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 4664. Requirements relating to long-term conces-
sions agreements with certain retailers 
‘‘(a) PROHIBITION ON CONTRACTING WITH CERTAIN 
RETAILERS.—(1) The Secretary of Defense may not 
renew, extend, or enter into a long-term concessions agree-
ment with a retailer that is controlled by a covered nation 
to permit such retailer to operate or conduct business 
through a physical location on a covered military installa-
tion. 
‘‘(2) The Secretary may waive the requirements of 
paragraph (1) if the Secretary determines that—
755 
‘‘(A) the goods or services to be provided by the 
retailer are vital for the welfare and morale of mem-
bers of the Armed Forces and no reasonable alter-
natives exist; 
‘‘(B) the Secretary has implemented adequate 
measures to mitigate any potential national security 
risks of the retailer; and 
‘‘(C) the retailer has received a determination 
from the Committee on Foreign Investment in the 
United States (in this section referred to as the 
‘Committee’) that there are no unresolved national 
security concerns with respect to the retailer in con-
nection to a matter submitted to the Committee and 
which the Committee concluded all action pursuant 
to section 721 of the Defense Production Act of 
1950 (50 U.S.C. 4565). 
‘‘(3) Not later than 30 days after each use of the 
waiver authority under paragraph (2), the Secretary shall 
submit to the Committees on Armed Services of the House 
of Representatives and Senate a report including a jus-
tification for the use of such authority and a description 
of any risk mitigation strategies described in paragraph 
(2)(B). 
‘‘(4) With respect to a retailer that has misrepre-
sented the ownership and control of such retailer for the
756 
award of a long-term concessions agreement, the Secretary 
of Defense may terminate such agreement. 
‘‘(5) Paragraph (1) shall apply with respect to a long- 
term concessions agreement entered into on or after the 
date of the enactment of this section. 
‘‘(b) COVERED RETAILERS.—(1) The Secretary of 
Defense may not permit a covered retailer controlled by 
a covered nation to operate or conduct business through 
a physical location on a covered military installation, un-
less such covered retailer has received an approval deter-
mination under paragraph (4). 
‘‘(2) Not later than 30 days after the date of the en-
actment of this section, a covered retailer— 
‘‘(A) shall submit to the Committee a notice 
that includes any direct or indirect relationships be-
tween the covered retailer (including any subsidiaries 
or parent companies of such covered retailer) and 
any covered nation; and 
‘‘(B) may not operate or conduct business 
through a physical location on a covered military in-
stallation unless the Committee submits a deter-
mination approving such notice in accordance with 
paragraph (3). 
‘‘(3) The Committee shall conduct an investigation 
of the effects of a notice submitted under paragraph (2)
757 
on the national security of the United States, including 
an assessment of any direct or indirect relationships be-
tween the covered retailer (including any subsidiaries or 
parent companies of such covered retailer) and any cov-
ered nation. 
‘‘(4) Not later than 180 days after completing an in-
vestigation under paragraph (3), the Committee shall sub-
mit to the Secretary of Defense a determination approving 
or disapproving the notice submitted under paragraph (2). 
‘‘(5)(A) A covered retailer that receives an approval 
under paragraph (4) shall submit annually to the Com-
mittee disclosures regarding any change in the ownership 
structure that may affect whether or not the covered re-
tailer is controlled by a covered nation. 
‘‘(B) The Secretary of Defense shall immediately ter-
minate a long-term concession agreement with a covered 
retailer if the Secretary determines such covered retailer 
has failed to comply with the requirements of this sub-
section. 
‘‘(c) ASSESSMENT
OF COVERED RETAILERS.—(1) 
Not later than 180 days after the date of the enactment 
of this section, the Secretary of Defense shall review each 
long-term concessions agreement with a covered retailer 
that permits the covered retailer to operate or conduct 
business through a physical location on a covered military
758 
installation to assess any direct or indirect relationships 
between the retailer (including any subsidiaries or parent 
companies of such covered retailer) and any covered na-
tion. 
‘‘(2) Not later than 30 days after making a deter-
mination that a covered retailer is controlled by a covered 
nation based on an assessment described in subsection (a) 
or a determination made under subsection (b), the Sec-
retary of Defense shall terminate any long-term conces-
sions agreement with the covered retailer. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘controlled by a covered nation’ 
means, with respect to a retailer— 
‘‘(A) that the retailer is organized under 
the laws of a covered nation or any jurisdiction 
within a covered nation; 
‘‘(B) that a covered nation owns 20 per-
cent or more of the shares of the retailer; or 
‘‘(C) that the retailer is subject to the di-
rect or control of a covered nation. 
‘‘(2) The term ‘covered military installation’ 
means a military installation (as defined in section 
2801 of this title) located in the United States. 
‘‘(3) The term ‘covered nation’ has the meaning 
given in section 4872 of this title.
759 
‘‘(4) The term ‘covered retailer’ means a re-
tailer that is performing a long-term concessions 
agreement on or before the date of the enactment of 
this Act. 
‘‘(5) The term ‘long-term concessions agree-
ment’ means a contract, subcontract (at any tier), or 
other agreement, including a lease agreement or li-
censing agreement, to operate a business through a 
physical location on a covered military installation 
entered into by— 
‘‘(A) the Secretary of Defense or a Sec-
retary of a military department and a person, 
including a nonappropriated fund instrumen-
tality; or 
‘‘(B) a person and a nonappropriated fund 
instrumentality. 
‘‘(6) The term ‘retailer’ means— 
‘‘(A) a nonappropriated fund instrumen-
tality that operates or seeks to operate a busi-
ness through a physical location on a covered 
military installation; 
‘‘(B) any other person that operates or 
seeks to operate a business on a covered mili-
tary installation under a contract, subcontract
760 
(at any tier), or other agreement, including a 
lease agreement or licensing agreement, with— 
‘‘(i) a nonappropriated fund instru-
mentality; 
‘‘(ii) the Secretary of Defense; or 
‘‘(iii) a Secretary of a military depart-
ment.’’. 
(b) ASSESSMENT OF COVERED RETAILERS.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall review each long-term con-
cessions agreement with a covered retailer that per-
mits the covered retailer to operate or conduct busi-
ness through a physical location on a covered mili-
tary installation to assess any direct or indirect rela-
tionships between the retailer (including any subsidi-
aries or parent companies of such covered retailer) 
and any covered nation. 
(2) TERMINATION.—Not later than one year 
after making a determination that a covered retailer 
is controlled by a covered nation based on an assess-
ment described in subsection (a), the Secretary of 
Defense shall terminate any long-term concessions 
agreement with the covered retailer.
761 
(3) DEFINITIONS.—In this section, the terms 
‘‘covered nation’’, ‘‘covered retailer’’, and ‘‘long-term 
concessions agreement’’ have the meanings given, re-
spectively, in section 4664 of title 10, United States 
Code, as added by this section. 
SEC. 862. PROHIBITION ON CONTRACTING WITH ENTITIES 
WITH SEGREGATED FACILITIES. 
Chapter 363 of title 10, United States Code, as 
amended by section 861 of this Act, is further amended 
by adding at the end the following new section: 
‘‘§ 4665. Prohibition on contracting with entities with 
segregated facilities 
‘‘Each contract, including a subcontract (at any tier) 
under such a contract, entered into by the Secretary of 
Defense on or after the date of the enactment of this sec-
tion shall include a provision requiring that each con-
tractor follow all Federal laws, including title II of the 
Civil Rights Act of 1964 (42 U.S.C. 2000a et seq.), which 
prohibit segregated facilities.’’. 
SEC. 863. REQUIREMENT FOR CONTRACTORS TO PROVIDE 
REASONABLE 
ACCESS 
TO 
REPAIR 
MATE-
RIALS. 
(a) IN GENERAL.—Chapter 363 of title 10, United 
States Code, as amended by section 862 of this Act, is
762 
further amended by adding at the end the following new 
section: 
‘‘§ 4666. Requirement for contractors to provide rea-
sonable access to repair materials 
‘‘(a) REQUIREMENT.—An agency may not enter into 
a contract for the procurement of reparable goods or re-
pair services in support of major weapon systems unless 
the contractor agrees in writing to provide the Department 
of Defense fair and reasonable access to all the repair ma-
terials, including parts, tools, and information, used by the 
manufacturer or provider or their authorized repair pro-
viders to diagnose, analyze, maintain, or repair the good 
or service. 
‘‘(b) WAIVER.—The Secretary of Defense, or the 
head of the procuring agency in the case of a delegated 
authority, may waive the requirements of this section with 
respect to a particular contract or class of contracts upon 
a written determination that application of those require-
ments would have a negative impact on cost, schedule, or 
technical performance. 
‘‘(c) PROTECTION FOR INTELLECTUAL PROPERTY, 
PROPRIETARY, AND TRADE SECRET INFORMATION.— 
Nothing in this section shall be construed to permit the 
unauthorized disclosure or release of intellectual property, 
commercially confidential information, or trade secrets.
763 
The Secretary of Defense shall take all necessary steps 
to protect such information from disclosure to the extent 
otherwise protected by law. 
‘‘(d) FAIR AND REASONABLE ACCESS DEFINED.—In 
this section, the term ‘fair and reasonable access’ means, 
as applicable— 
‘‘(1) prices, terms, and conditions that allow the 
Department of Defense the rights to provide the re-
pair materials to an authorized contractor consistent 
with section 3771 of title 10, United States Code, 
and the Government’s product support strategy; 
‘‘(2) provision at prices, terms, and conditions 
that are equivalent to the most favorable prices, 
terms, and conditions under which the manufacturer 
or an authorized reseller or distributor offers the re-
pair material to an authorized repair provider, ac-
counting for any discount, rebate, convenient and 
timely means of delivery, means of enabling fully re-
stored and updated functionality, rights of use, or 
other incentive or preference the manufacturer or an 
authorized reseller or distributor offers to an author-
ized repair provider; 
‘‘(3) if a manufacturer does not offer, directly 
or through an authorized reseller or distributor, the 
repair material to any authorized repair provider,
764 
then provision of such repair material at prices, 
terms, and conditions that are otherwise determined 
by the United States Government to be fair and rea-
sonable in accordance with this title and subject to 
the dispute resolution process outlined in chapter 71 
of title 41, United States Code; and 
‘‘(4) if the United States Government did not 
previously fund the development of the intellectual 
property of the manufacturer or an authorized re-
seller or distributor, the Government would pay a 
fair and reasonable licensing fee to obtain access.’’. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall submit to the congressional de-
fense committees a report on the implementation of this 
section. 
(c) LIMITATIONS.—Nothing in this section shall be 
construed as altering the requirements in section 2464 
and 2466 of title 10, United States Code. 
SEC. 864. PROHIBITION ON ACQUISITION OF ADVANCED 
BATTERIES 
FROM 
CERTAIN 
FOREIGN 
SOURCES. 
(a) IN GENERAL.—Subchapter II of chapter 385 of 
title 10, United States Code, is amended by adding at the 
end the following new section:
765 
‘‘§ 4865. Prohibition on acquisition of advanced bat-
teries composed of materials from certain 
foreign sources 
‘‘(a) IN GENERAL.—Beginning on January 1, 2027, 
and except as provided by subsection (b), the Secretary 
of Defense may acquire an advanced battery for use at 
installations of the Department of Defense or in systems 
of the Department, or obtain any equipment, system, or 
service that uses covered battery equipment or services as 
a substantial or essential component of any system or as 
critical technology as part of any system, only if— 
‘‘(1) more than 95 percent of the electrode ac-
tive material in each battery cell comprising such ad-
vanced battery is composed of materials from 
sources other than sources that are, or are in geo-
graphic areas that are, owned by, controlled by, or 
subject to the jurisdiction of foreign entities of con-
cern; 
‘‘(2) such advanced battery is not a battery de-
scribed in section 154(a) of the National Defense 
Authorization Act for Fiscal Year 2024 (Public Law 
118–31; 10 U.S.C. 4651 note prec.); and 
‘‘(3) each such battery cell is manufactured 
without technology licensed from a foreign entity of 
concern or any subsidiary, successor, or affiliate of
766 
a foreign entity of concern under a licensing agree-
ment that— 
‘‘(A) limits the duration of the use of such 
technology; or 
‘‘(B) requires— 
‘‘(i) any ownership of the manufac-
turer of such battery cell by a foreign enti-
ty of concern or any subsidiary, successor, 
or affiliate of a foreign entity of concern; 
or 
‘‘(ii) any partnership or technology 
transfer between such manufacturer and a 
foreign entity of concern or any subsidiary, 
successor, or affiliate of a foreign entity of 
concern. 
‘‘(b) EXCEPTIONS.— 
‘‘(1) WAIVER.— 
‘‘(A) IN
GENERAL.—The Secretary of a 
military department may waive subsection (a) 
with respect to an acquisition of an advanced 
battery if the Secretary— 
‘‘(i) determines in writing that such 
acquisition is necessary to the national se-
curity interest of the United States; and
767 
‘‘(ii) implements a strategy to elimi-
nate such necessity. 
‘‘(B) DELEGATION.—The Secretary of a 
military department may delegate the written 
determination required under subparagraph 
(A)(i) only as follows: 
‘‘(i) To the head of a contracting ac-
tivity for the relevant component for a 
waiver for a single acquisition program. 
‘‘(ii) To the senior acquisition execu-
tive of a military department for a waiver 
for multiple programs within such military 
department. 
‘‘(iii) To the Undersecretary of De-
fense for Acquisition and Sustainment for 
a waiver for more than one military de-
partment. 
‘‘(C) CONTENTS.—The written determina-
tion required under subparagraph (A)(i) with 
respect to a waiver for the acquisition of an ad-
vanced battery shall include— 
‘‘(i) the reason such waiver is re-
quired;
768 
‘‘(ii) a list of each weapon system or 
end item for which such advanced battery 
is being acquired under such waiver; 
‘‘(iii) the duration of such wavier; and 
‘‘(iv) a timeline for implementing the 
strategy described in subparagraph (A)(ii). 
‘‘(2) PERSONAL ELECTRONICS.—Subsection (a) 
does not apply with respect to the acquisition of an 
advanced battery for use in personal electronics, in-
cluding cell phones and laptops, intended for office 
or administrative purposes. 
‘‘(3) TESTING
AND
EVALUATION.—Subsection 
(a) does not apply with respect to the acquisition of 
an advanced battery for which testing and evaluation 
under a program of record of the Department of De-
fense begins prior to January 1, 2027. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The terms ‘advanced battery’ and ‘foreign 
entity of concern’ have the meanings given such 
terms, respectively, under section 40207(a) of the 
Infrastructure Investment and Jobs Act (42 U.S.C. 
18741(a)). 
‘‘(2) The term ‘battery cell’ means the smallest 
individual component of a battery capable of con-
verting chemical energy into electrical energy.
769 
‘‘(3) The term ‘electrode active materials’ 
means cathode materials, anode materials, anode 
foils, and other electrochemically active materials in-
cluding solvents, additives, and electrolyte salts that 
contribute to the electrochemical processes necessary 
for energy storage in a battery.’’. 
(b) APPLICABILITY.—Section 4865 of title 10, United 
States Code, as added by subsection (a), shall apply only 
with respect to contracts or other agreements entered into 
after the date of the enactment of this Act. 
SEC. 865. PROHIBITION ON ACQUISITION OF MOLYBDENUM 
FROM NON-ALLIED FOREIGN NATIONS. 
(a) IN GENERAL.—Section 4872(h)(1) of title 10, 
United States Code, as redesignated and amended by this 
Act, is further amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (E), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) molybdenum.’’. 
(b) EXISTING CONTRACT.—The amendments made 
by subsection (a) shall apply only with respect to contracts
770 
and other agreements entered into after the date of the 
enactment of this Act. 
SEC. 866. REQUIREMENT TO BUY DISPOSABLE FOOD SERV-
ICE PRODUCTS FROM AMERICAN SOURCES; 
EXCEPTIONS. 
(a) IN GENERAL.—Subchapter II of chapter 385 of 
title 10, United States Code, as amended by section 864 
of this Act, is further amended by adding at the end the 
following new section: 
‘‘§ 4866. Requirement to buy disposable food service 
products from American sources; excep-
tions 
‘‘(a) REQUIREMENT.—The Secretary of Defense may 
only procure disposable food service products that— 
‘‘(1) are American-made; 
‘‘(2) contain no added perfluoroalkyl substances 
or polyfluoroalkyl substances; and 
‘‘(3) improve operational readiness (as defined 
in section 4322 of this title). 
‘‘(b) WAIVER.—(1) The Secretary of Defense may 
waive the requirement under subsection (a) if the Sec-
retary— 
‘‘(A) determines that the waiver is in the 
best interest of the national security of the 
United States; and
771 
‘‘(B) submits to the congressional defense 
committees a written justification for issuing 
such waiver. 
‘‘(2) The Secretary may not delegate the authority 
to issue a waiver under this subsection to an official below 
the level of the Under Secretary of Defense for Acquisition 
and Sustainment. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘American-made’ means, with re-
spect to a disposable food service product, that such 
product is manufactured or produced in the United 
States— 
‘‘(A) by an entity that is incorporated and 
headquartered in the United States; and 
‘‘(B) substantially all from articles, mate-
rials, or supplies produced or manufactured in 
the United States. 
‘‘(2) The term ‘disposable food service products’ 
means— 
‘‘(A) single-use products for serving or 
transporting ready-to-consume food or bev-
erages; and 
‘‘(B) excludes— 
‘‘(i) plastic food wrappers or other 
plastic packaging for food; and
772 
‘‘(ii) operational rations, including 
meals ready-to-eat or unitized group ra-
tions. 
‘‘(3) The terms ‘perfluoroalkyl substance’ and 
‘polyfluoroalkyl substance’ have the meanings given, 
respectively, in section 2714 of this title.’’. 
(b) MODIFICATION
OF REGULATIONS.—Not later 
than 90 days after the date of the enactment of this Act, 
the Secretary of Defense shall revise the Department of 
Defense Supplement to the Federal Acquisition Regula-
tion to implement the requirements of section 4866 of title 
10, United States Code, as added by this section. 
SEC. 867. PROHIBITION ON DEPARTMENT OF DEFENSE 
CONTRACTS WITH CERTAIN FOREIGN-OWNED 
ONLINE TUTORING SERVICES. 
Section 854 of the Servicemember Quality of Life Im-
provement and National Defense Authorization Act for 
Fiscal Year 2025 (Public Law 118–159; 10 U.S.C. 4651 
note prec.) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
‘‘(a) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘the People’s Republic of 
China’’ and inserting ‘‘a country of concern’’; and 
(3) by adding at the end the following new sub-
section:
773 
‘‘(b) COUNTRY OF CONCERN DEFINED.—In this sec-
tion, the term ‘country of concern’ means any of the fol-
lowing: 
‘‘(1) China. 
‘‘(2) Russia. 
‘‘(3) Iran. 
‘‘(4) North Korea.’’. 
SEC. 868. MODIFICATIONS TO CERTAIN PROCUREMENTS 
FROM CERTAIN CHINESE ENTITIES. 
(a) MODIFICATION OF PROHIBITION ON DEPART-
MENT OF DEFENSE PROCUREMENT RELATED TO ENTI-
TIES IDENTIFIED AS CHINESE MILITARY COMPANIES OP-
ERATING IN THE UNITED STATES.— 
(1) PROHIBITION ON USE OF LOAN OR GRANT 
FUNDS.— 
(A) IN
GENERAL.—Subsection (a)(1) of 
section 805 of the National Defense Authoriza-
tion Act for Fiscal Year 2024 (Public Law 
118–31; 10 U.S.C. 4651 note prec.) is amend-
ed— 
(i) in subparagraph (A), by striking ‘‘; 
or’’ and inserting a semicolon; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; or’’; 
and
774 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) obligate or expend loan or grant 
funds to procure or obtain goods and services 
produced or developed by an entity described in 
paragraph (2).’’. 
(B) APPLICABILITY.—The requirements of 
subparagraph (C) of section 805(a)(1) of the 
National Defense Authorization Act for Fiscal 
Year 2024 (Public Law 118–31; 10 U.S.C. 
4651 note prec.), as added by this paragraph, 
shall apply with respect to loan or grant funds 
obligated or expended on or after the date of 
the enactment of this Act. 
(2) EXPANSION OF ENTITIES COVERED.—Sub-
section (a)(2) of such section is amended— 
(A) in subparagraph (A), by striking ‘‘; 
or’’ and inserting a semicolon; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) any entity for which the Secretary 
has submitted a certification to the congres-
775 
sional defense committees for inclusion in this 
paragraph for national security reasons.’’. 
(3) WAIVER
REPORTING.—Subsection (c) of 
such section is amended by adding at the end the 
following new paragraph: 
‘‘(4) REPORTING.—The Secretary of Defense 
shall submit to the congressional defense committees 
an annual report on waivers granted under this sub-
section, including the justifications for such waiv-
ers.’’. 
(4) RULEMAKING.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense shall amend the Department of 
Defense Supplement to the Federal Acquisition Reg-
ulation to implement the prohibitions in section 805 
of the National Defense Authorization Act for Fiscal 
Year 2024 (Public Law 118–31; 10 U.S.C. 4651 
note prec.), as amended by this subsection. 
(b) DESIGNATION OF CERTAIN BIOTECHNOLOGY EN-
TITIES AS CHINESE MILITARY COMPANIES.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary of Defense shall update the list maintained by 
the Department of Defense in accordance with sec-
tion 1260H(b) of the National Defense Authoriza-
776 
tion Act for Fiscal Year 2021 (Public Law 116–283; 
10 U.S.C. 113 note) to include biotechnology entities 
(including any subsidiary, parent, affiliate, or suc-
cessor of such an entity) engaged in DNA and RNA 
assembly, synthesis, and manufacturing. 
(2) DEFINITOINS.—In this subsection: 
(A) The term ‘‘DNA and RNA assembly, 
synthesis, and manufacturing’’ means the 
chemical or biological production of RNA and 
DNA molecules through enzymatic methods or 
chemical synthesis and involving the construc-
tion of longer sequences or entire genomes from 
smaller DNA or RNA fragments, commonly 
used in medical research, synthetic biology, 
gene therapy, and vaccine development. 
(B) The term ‘‘biotechnology entity’’ has 
the meaning given in section 1312(b) of the 
National Defense Authorization Act for Fiscal 
Year 2024 (Public Law 118–31). 
(c) MODIFICATION
OF
PROHIBITION
ON
AVAIL-
ABILITY
OF FUNDS
FOR PROCUREMENT
OF CERTAIN 
BATTERIES.—Subsection (b) of section 154 of the Na-
tional Defense Authorization Act for Fiscal Year 2024 
(Public Law 118–31; 10 U.S.C. note preceding section 
44651) is amended—
777 
(1) by redesignating paragraphs (2) through 
(7) as paragraphs (3) through (8), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) Amperex Technology Limited (also known 
as ‘ATL’).’’; and 
(3) by amending paragraph (8) as redesignated 
by striking ‘‘paragraphs (1) through (6)’’ and insert-
ing ‘‘paragraphs (1) through (7)’’. 
SEC. 869. PROHIBITION ON THE PURCHASE OF PHOTO-
VOLTAIC MODULES FROM FOREIGN ENTITIES 
OF CONCERN. 
(a) IN GENERAL.—Except as provided by subsection 
(b), none of the funds made available by this Act may be 
used to acquire a photovoltaic module or photovoltaic cells 
manufactured by a foreign entity of concern (as defined 
in section 9901 of the William M. (Mac) Thornberry Na-
tional Defense Authorization Act for Fiscal Year 2021 (15 
U.S.C. 4651). 
(b) WAIVER.—The Secretary of Defense may waive 
subsection (a) with respect to an acquisition of a photo-
voltaic module or photovoltaic cell manufactured by for 
foreign entity of concern if the Secretary— 
(1) determines that a sufficient quantity and 
satisfactory qualify of such photovoltaic module or
778 
photovoltaic cell, as applicable, manufactured by en-
tities other than foreign entities of concern is not 
available as and when needed at United States mar-
ket prices; 
(2) determines that the use of such photovolatic 
module or photovoltaic cell, as applicable, does not 
pose any risk to national security; and 
(3) submits to the appropriate congressional 
committees a certification of the determinations 
under paragraphs (1) and (2) not later than the 
date that is 30 days prior to the date on which the 
Secretary of Defense enters into a contract or other 
agreement for such acquisition. 
(c) APPLICABILITY.—Subsection (a) shall apply only 
with respect to contracts or other agreements for the ac-
quisition of photovoltaic modules or photovoltaic cells di-
rectly by the Department of Defense that do not involve 
any third party financing arrangements, including energy 
savings contracts and contracts or other agreements in-
volving privatized military housing. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘photovoltaic cell’’ means the 
smallest semiconductor element of a photovoltaic 
module that performs the immediate conversion of 
light into electricity.
779 
(2) The term ‘‘photovoltaic module’’ means an 
end item (as such term is defined in section 4863 
of title 10, United States Code) comprised of con-
nected and laminated photovoltaic cells in an envi-
ronmentally protected assembly that is suitable to 
generate electricity when exposed to sunlight. 
SEC. 870. PROHIBITION ON COMPUTERS OR PRINTERS AC-
QUISITIONS INVOLVING ENTITIES OWNED OR 
CONTROLLED BY CHINA. 
(a) IN GENERAL.—The Secretary of Defense may not 
acquire any computer or printer if the manufacturer, bid-
der, or offeror is a covered Chinese entity. 
(b) APPLICABILITY.—This section shall apply with 
respect to contracts or other agreements entered into, re-
newed, or extended after the date of the enactment of this 
Act. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘computer’’— 
(A) means an electronic, magnetic, optical, 
electrochemical, or other high speed data proc-
essing device performing logical, arithmetic, or 
storage functions, and includes any data stor-
age facility or communications facility directly 
related to or operating in conjunction with such 
device; and
780 
(B) does not include an automated type-
writer or typesetter, a portable handheld calcu-
lator, or other similar device. 
(2) The term ‘‘covered Chinese entity’’ means 
an entity that the Secretary of Defense, in consulta-
tion with the Director of the National Intelligence or 
the Director of the Federal Bureau of Investigation, 
determines to be an entity owned, controlled, di-
rected, or subcontracted by, affiliated with, or other-
wise connected to, the Government of the People’s 
Republic of China. 
(3) The term ‘‘manufacturer’’ means— 
(A) the entity that transforms raw mate-
rials, miscellaneous parts, or components into 
the end item; 
(B) an entity that subcontracts with the 
entity described in subparagraph (A) for pur-
poses of assisting the entity described in such 
subparagraph in transforming raw materials, 
miscellaneous parts, or components into the end 
item; 
(C) an entity that otherwise directs the en-
tity described in subparagraph (A) to transform 
raw materials, miscellaneous parts, or compo-
nents into the end item; or
781 
(D) any parent company, subsidiary, or af-
filiate of the entity described in subparagraph 
(A). 
(4) The term ‘‘printer’’— 
(A) means desktop printers, multifunction 
printer copiers, and printer and fax combina-
tions taken out of service that may or may not 
be designed to reside on a work surface; 
(B) includes devices that use various print 
technologies, including laser and LED (electro-
graphic), ink jet, dot matrix, thermal, and dig-
ital sublimation; 
(C) includes multi-function or ‘‘all-in-one’’ 
devices that perform different tasks, including 
copying, scanning, faxing, and printing; 
(D) includes floor-standing printers, print-
ers with an optional floor stand, or household 
printers; and 
(E) does not include point-of-sale receipt 
printers, calculators with printing capabilities, 
label makers, or non-standalone printers that 
are embedded into products that are not de-
scribed in subparagraphs (A) through (D).
782 
SEC. 870A. PROHIBITION ON ENTERING INTO CONTRACTS 
WITH A PERSON ENGAGED IN A BOYCOTT OF 
THE STATE OF ISRAEL. 
The Secretary of Defense may not enter into a con-
tract with a person if such person is engaged in an activity 
that is politically motivated and is intended to penalize 
or otherwise limit significant commercial relations specifi-
cally with Israel or persons doing business in Israel or in 
Israeli-controlled territories. 
SEC. 870B. REQUIREMENTS FOR PRIME CONTRACTORS OF 
CERTAIN 
TELECOMMUNICATIONS 
CON-
TRACTS. 
(a) IN GENERAL.—With respect to an eligible con-
tract relating to the procurement of telecommunications 
for the Department of Defense, the Secretary of Defense 
shall ensure that the principal office of the prime con-
tractor for such eligible contract is located in the United 
States. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘eligible contract’’ means an in-
definite delivery-indefinite quantity task order con-
tract or delivery order contract that is— 
(A) in an amount greater than the sim-
plified acquisition threshold (as defined in sec-
tion 3015 of title 10, United States Code); and
783 
(B) that is a commercial product or a com-
mercial service, as such terms are defined, re-
spectively, in section 3011 of such title. 
(2) The term ‘‘telecommunications’’ has the 
meaning given in section 3 of the Communications 
Act of 1934 (47 U.S.C. 153). 
SEC. 870C. REPORT ON COMPLIANCE PROGRESS WITH SEN-
SITIVE 
MATERIAL 
ACQUISITION 
PROHIBI-
TION. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to Committee on Armed Services of the 
House of Representatives a report on the progress of the 
Department of Defense in implementing the amendments 
to the prohibition on the acquisition of covered materials 
under section 4872 of title 10, United States Code, made 
by section 844 of William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 2021 (Public 
Law 116-283; 134 Stat. 3766), that are effective on Janu-
ary 1, 2027, including— 
(1) for each major defense acquisition program 
(as defined in section 4201 of title 10, United States 
Code), a detailed explanation of the progress of such 
major defense acquisition program in meeting such 
prohibition as so amended; and
784 
(2) an explanation of how the Department is 
using of funds made available under or pursuant to 
the Defense Production Act of 1950 (50 U.S.C. 
4501 et seq.) with respect to each phase of the proc-
ess for such covered materials, from mining through 
final production, to ensure the implementation of 
such amendments. 
SEC. 870D. PROHIBITION ON PROCUREMENT OF CERTAIN 
ORGANIC LIGHT EMITTING DIODE DISPLAY 
TECHNOLOGIES. 
Chapter 363 of title 10, United States Code, as 
amended by section 863 of this Act, is further amended 
by adding at the end the following new section: 
‘‘§ 4667. Prohibition on procurement of certain or-
ganic light emitting diode display tech-
nologies 
‘‘(a) IN GENERAL.—Effective June 30, 2027, the 
Secretary of Defense may not enter into, renew, or extend 
a contract or other agreement for the procurement of— 
‘‘(1) OLED display technologies that are fab-
ricated in a foreign adversary, by a foreign adver-
sary entity, or by a covered OLED display tech-
nologies company; or 
‘‘(2) goods or services that include any OLED 
display technologies that are fabricated in a foreign
785 
adversary, by a foreign adversary entity, or by a cov-
ered OLED display technologies company. 
‘‘(b) WAIVER.—(1) The Secretary of Defense may 
waive the prohibition under subsection (a) if Secretary de-
termines that goods or services that include OLED display 
technology that conforms to the requirements of this sec-
tion are not available in the quality and quantity required. 
‘‘(2) The Secretary of Defense shall submit to Con-
gress a report describing waivers granted in accordance 
with this subsection not later than February 15 of the cal-
endar year following the year the waiver was granted. 
Such report shall include a description of the product or 
service subject to the waiver, and a brief summary of the 
rationale for each wavier. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered OLED display tech-
nologies company’ means— 
‘‘(A) any entity, or a subsidiary, affiliate, 
or licensee of such entity that produces, devel-
ops, or provides OLED display technologies and 
that is— 
‘‘(i) included on the Consolidated 
Screening List maintained by the Inter-
national Trade Administration of the De-
partment of Commerce; or
786 
‘‘(ii) identified in the list of Chinese 
military companies operating in the United 
States published in the Federal Register by 
the Department of Defense pursuant to 
section 1260H of the William H. (Mac) 
Thornberry National Defense Authoriza-
tion Act for Fiscal Year 2021 (10 U.S.C. 
113 note); or 
‘‘(B) an entity that produces, develops, or 
provides OLED display technologies and that is 
subject to unmitigated foreign ownership, con-
trol, or influence by a covered foreign country, 
as determined by the Secretary of Defense in 
accordance with the National Industrial Secu-
rity Program (or any successor to such pro-
gram). 
‘‘(2) The term ‘fabricate’— 
‘‘(A) means the process of manufacturing 
display technologies through techniques includ-
ing material deposition, lithography, etching, 
and encapsulation, or flexible substrates or sil-
icon wafers to enable image generation; and 
‘‘(B) does not include the final assembly 
and integration of individual display cells cut 
from large substrates into complete display
787 
modules for integration into set products, where 
such assembly and integration focuses primarily 
on tasks such as integrated circuit bondings, 
flexible printed circuit attachment, touch sensor 
integration, and cover glass lamination (known 
as the ‘module process’). 
‘‘(3) The term ‘foreign adversary’ means a 
country specified in section 4872(f) of title 10, 
United States Code. 
‘‘(4) The term ‘foreign adversary entity’ 
means— 
‘‘(A) a foreign adversary; 
‘‘(B) a person domiciled in, headquartered 
in, that maintains a principal place of business 
in, or is organized under the laws of a foreign 
adversary; and 
‘‘(C) a person owned, directed, or con-
trolled by an entity described in subparagraph 
(A) or (B). 
‘‘(5) The term ‘OLED display technologies’ 
means an electronic visual output device that ren-
ders images, text, or video by modulating light emis-
sions through technologies (such as organic light 
emitting diodes or microdot arrays) and is composed 
of an active matrix (including thin-film transistors)
788 
or passive matrix that controls pixel operation, light 
emission or modulation layer, driver electronics to 
convert input signals into pixel control instructions, 
and 
interface 
mechanisms 
that 
may 
include 
touchscreen layers, refresh rate controllers, or color 
calibration.’’. 
Subtitle F—Industrial Base Matters 
SEC. 871. MODIFICATION TO DEMONSTRATION AND PROTO-
TYPING 
PROGRAM 
TO 
ADVANCE 
INTER-
NATIONAL PRODUCT SUPPORT CAPABILITIES 
IN A CONTESTED LOGISTICS ENVIRONMENT. 
Section 842 of the National Defense Authorization 
Act for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 
2341 note) is amended— 
(1) in subsection (b)(2)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) commercial advanced or additive 
manufacturing facilities for rapid, distributed 
production of parts closer to the point of use; 
and’’; and
789 
(2) in subsection (g), by striking ‘‘on the date’’ 
and all that follows and inserting ‘‘December 31, 
2030.’’. 
SEC. 872. MODIFICATION TO PROCUREMENT REQUIRE-
MENTS RELATING TO RARE EARTH ELE-
MENTS AND STRATEGIC AND CRITICAL MATE-
RIALS. 
(a) MODIFICATION REGARDING ADVANCED BAT-
TERIES
IN DISCLOSURES CONCERNING RARE EARTH 
ELEMENTS AND STRATEGIC AND CRITICAL MATERIALS 
BY CONTRACTORS OF DEPARTMENT OF DEFENSE.—Sec-
tion 857 of the James M. Inhofe National Defense Au-
thorization Act for Fiscal Year 2023 (Public Law 117– 
263; 136 Stat. 2727; 10 U.S.C. 4811 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(A)— 
(i) by striking ‘‘permanent magnet’’ 
and inserting ‘‘permanent magnet, or an 
advanced battery or advanced battery com-
ponent (as those terms are defined, respec-
tively, in section 40207(a) of the Infra-
structure Investment and Jobs Act (42 
U.S.C. 18741(a))),’’; and 
(ii) by striking ‘‘of the magnet’’ and 
inserting ‘‘of the magnet, the advanced
790 
battery, or the advanced battery compo-
nent (as applicable)’’; and 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) ELEMENTS.—A disclosure under para-
graph (1) with respect to a system described in that 
paragraph shall include— 
‘‘(A) if the system includes a permanent 
magnet, an identification of the country or 
countries in which— 
‘‘(i) any rare earth elements and stra-
tegic and critical materials used in the 
magnet were mined; 
‘‘(ii) such elements and materials were 
refined into oxides; 
‘‘(iii) such elements and materials 
were made into metals and alloys; and 
‘‘(iv) the magnet was sintered or 
bonded and magnetized; and 
‘‘(B) if the system includes an advanced 
battery or an advanced battery component, an 
identification of the country or countries in 
which— 
‘‘(i) any strategic and critical mate-
rials that are covered minerals used in the
791 
battery or component were refined, proc-
essed, or reprocessed; 
‘‘(ii) any strategic and critical mate-
rials that are covered minerals and that 
were manufactured into the battery or 
component; and 
‘‘(iii) the battery cell, module, and 
pack of the battery or component were 
manufactured and assembled.’’; and 
(2) by amending subsection (d) to read as fol-
lows: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘strategic and critical materials’ 
means materials designated as strategic and critical 
under section 3(a) of the Strategic and Critical Ma-
terials Stock Piling Act (50 U.S.C. 98b(a)). 
‘‘(2) The term ‘covered minerals’ means lith-
ium, nickel, cobalt, manganese, and graphite.’’. 
(b) TECHNICAL AMENDMENTS.—Subsection (a) of 
such section 857 is further amended— 
(1) in paragraph (3), by striking ‘‘provides the 
system’’ and inserting ‘‘provides the system as de-
scribed in paragraph (1)’’; and
792 
(2) in paragraph (4)(C), by striking ‘‘a senior 
acquisition executive’’ and inserting ‘‘a service acqui-
sition executive’’. 
SEC. 873. APPLICABILITY OF THE PROHIBITION ON AC-
QUIRING CERTAIN METAL PRODUCTS. 
Section 844(b) of the National Defense Authorization 
Act for Fiscal Year 2021 (Public Law 116–283) is amend-
ed— 
(1) in the subsection heading, by inserting ‘‘; 
APPLICABILITY’’ after ‘‘DATE’’; and 
(2) by inserting ‘‘, and shall apply with respect 
to contracts entered into on or after,’’ after ‘‘take ef-
fect on’’. 
SEC. 874. RECYCLING CRITICAL MINERAL. 
Section 848(b) of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 
(Public Law 116-283; 10 U.S.C. 4811 note) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by inserting 
‘‘under the guidance described in paragraph 
(3)’’ after ‘‘recycled or reused minerals or met-
als’’; and 
(B) in subparagraph (C), by inserting 
‘‘under the guidance described in paragraph
793 
(3)’’ after ‘‘recycled or reused minerals or met-
als’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) GUIDANCE.—The Under Secretary of De-
fense for Acquisition and Sustainment shall issue 
guidance to use the lessons learned from the pro-
gram of the Defense Logistics Agency for recycling 
optical-grade germanium used in weapons systems 
and night vision equipment to expand and scale the 
use of the authority of the Secretary of Defense 
under the Strategic and Critical Materials Stock Pil-
ing Act (50 U.S.C. 98 et seq.) to recycle, reuse, or 
otherwise recover materials determined to be stra-
tegic and critical materials under section 3(a) of the 
Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98b(a)).’’. 
SEC. 875. ORGANIC SMALL UNMANNED AIRCRAFT SYSTEM 
MANUFACTURING CAPACITY. 
(a) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall establish in the Defense Industrial Resilience Con-
sortium established under section 1842 a working group, 
to be called the ‘‘SkyFoundry Working Group’’, to develop 
recommendations—
794 
(1) for improving the domestic manufacturing 
capacity for small unmanned aircraft systems; and 
(2) to enable rapid development, testing, and 
scalable manufacturing of small drones. 
(b) MEMBERSHIP.—The membership of the working 
group shall include representatives from the Government, 
including representatives from the Army Materiel Com-
mand and the United States Special Operations Com-
mand, industry, and academia with expertise in the manu-
facturing, engineering, or testing and evaluation of small 
UAS manufacturing, including expertise in modular man-
ufacturing processes for small UAS, or commercial best 
practices and business models for manufacturing small 
UAS. 
(c) RESPONSIBILITIES.—The working group estab-
lished under subsection (a) shall— 
(1) identify existing infrastructure of the De-
partment of Defense, including depots and military 
installations, that may be modified to operate as an 
innovation center and production facility for small 
UAS manufacturing that is capable of mass pro-
ducing small UAS; 
(2) assess how the infrastructure identified 
under paragraph (1) could be operated using a hy-
brid business model, including—
795 
(A) a Government Owned, Contractor Op-
erated model; and 
(B) a Government Owned, Government 
Operated model; 
(3) identify additional authorities that could be 
used to streamline and expedite the establishment of 
an organic small UAS innovation and production fa-
cility, including rapid acquisition authorities that 
could be used to accelerate contacting, production, 
testing, and delivery of small UAS to the Depart-
ment of Defense; 
(4) identify any changes to policy and proce-
dures of the Department that are required for the 
Department to establish the innovation center and 
production facility for sUAS manufacturing at an 
existing depot or military installation; 
(5) identify any funding required for the 
sustainment, restoration, and modernization of fa-
cilities to establish an innovation center and produc-
tion facility for small UAS manufacturing; and 
(6) develop and submit to the Secretary of De-
fense recommendations for— 
(A) establishing an innovation center and 
production facility for small UAS manufac-
turing;
796 
(B) workforce training to enhance the 
knowledge and experience of the workforce of 
the Department of Defense in small UAS de-
sign, manufacturing, and testing best practices 
and procedures; and 
(C) expanding the concept of a innovation 
center and production facility to expand the ac-
cess of the Department of Defense to required 
products, including energetics and autonomous 
systems. 
(d) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress— 
(1) a summary of the recommendations sub-
mitted to the Secretary under subsection (c)(6); 
(2) an explanation of the actions taken by the 
Secretary to better enable the Department of De-
fense to rapidly develop, test, and manufacture small 
UAS; and 
(3) the recommendations of the Secretary to en-
able the Department to expand domestic manufac-
turing capacity for small unmanned aircraft systems 
and to enable rapid development, testing, and scal-
able manufacturing of small drones, including any
797 
recommendations for any additional relevant statu-
tory authorities. 
(e) SUNSET.— 
(1) IN GENERAL.—The requirements under this 
section shall expire on the date that is one year after 
the date of this Act. 
(2) RULE OF CONSTRUCTION.—Paragraph (1) 
shall not be construed as terminating the authority 
of the Secretary to continue the operating the work-
ing group established under subsection (a) after the 
expiration date established under such paragraph. 
(f) PRESERVATION OF AUTHORITY.—The establish-
ment or findings of the working group established under 
subsection (a) shall not be construed as restricting, delay-
ing, or otherwise limiting the Secretary of the Army from 
exercising any of the authorities of the Secretary referred 
to in this section, including the performance of any action 
under any authority of the Secretary that may be the sub-
ject of a review by or recommendation of such working 
group. 
(g) DEFINITIONS.—In this section: 
(1) The term ‘‘small unmanned aircraft sys-
tem’’ mean a small unmanned aircraft and associ-
ated elements (including communication links and 
the components that control the unmanned aircraft)
798 
that are required for the operator to operate safely 
and efficiently in the national airspace system. 
(2) The term ‘‘small unmanned aircraft’’ means 
an unmanned aircraft weighing less than 55 pounds, 
including the weight of anything attached to or car-
ried by the aircraft. 
SEC. 876. PROTECTING AI AND CLOUD COMPETITION IN DE-
FENSE CONTRACTS. 
(a) CLOUD, DATA INFRASTRUCTURE, AND FOUNDA-
TION MODEL PROCUREMENT REQUIREMENTS.—The Sec-
retary of Defense shall, when entering into a contract for 
cloud computing, data infrastructure, and artificial intel-
ligence capabilities— 
(1) promote security, resiliency, and competi-
tion in the procurement of such capabilities by re-
quiring the use of competitive procedures under sec-
tion 3012 of title 10, United States Code; 
(2) ensure that the Government retains exclu-
sive access to and use of all Government-furnished 
data; 
(3) ensure that such competitive procedures— 
(A) 
prioritize 
appropriate 
Government 
roles in intellectual property, data rights, secu-
rity, interoperability, and auditability;
799 
(B) incorporate modular open systems ap-
proaches (as defined in section 4401 of title 10, 
United States Code (as amended by section 
1833 of this Act)) and technical boundaries; 
(C) use best practices in streamlined pro-
curement as set forth in the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103– 
355) and section 808 of the National Defense 
Authorization Act for Fiscal Year 2021 (Public 
Law 116– 283; 10 U.S.C. 4001 note); 
(D) encourages participation by small busi-
ness concerns (as defined under section 3 of the 
Small Business Act (15 U.S.C. 632)) and non-
traditional defense contractors (as defined in 
section 3014 of title 10, United States Code); 
(E) uses all appropriate acquisition au-
thorities, including authorities under sections 
4021 and 4022 of title 10, United States Code, 
and commercial solutions opening contracts en-
tered into pursuant to section 3458 of title 10, 
United States Code. 
(b) DATA TRAINING AND USE PROTECTION.—The 
Secretary of Defense, acting through the Director of the 
Chief Digital and Artificial Intelligence Office of the De-
partment of Defense, shall revise the Department of De-
800 
fense Supplement to the Federal Acquisition Regulation 
to ensure that— 
(1) Government-furnished data provided for the 
development or operation of AI capabilities may not 
be used by a covered provider to train or improve 
commercial products without express written author-
ization from the Secretary of Defense; 
(2) such Government-furnished data, when 
stored on covered provider systems, is protected and 
treated in accordance with covered data principles, 
or, to the maximum extent practicable, under com-
mercial AI terms protective of Government interests; 
(3) a service acquisition executive (as defined in 
section 101 of title 10, United States Code) may 
waive the requirements of this subsection only if— 
(A) such waiver is determined to be nec-
essary for national security; and 
(B) the Director is notified of the specific 
waiver, the covered provider and a description 
and the value of the contract to which the waiv-
er applies, the data subject to the waiver, and 
the justification for such waiver. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than January 15, 
2027, and annually thereafter for four years, the
801 
Chairman of the Joint Chiefs of Staff, in coordina-
tion with the Under Secretary of Defense for Acqui-
sition and Sustainment, shall submit to the congres-
sional defense committees a report on— 
(A) competition and innovation among pro-
viders of AI technologies or cloud computing ca-
pabilities for the Department of Defense; 
(B) barriers to the award of a contract 
with the Department of Defense faced by pro-
viders of commercial AI technologies and 
emerging technology companies; and 
(C) legislative and administrative rec-
ommendations to enhance innovation, competi-
tion, and secure data practices in Department 
of Defense AI and cloud acquisitions. 
(2) PUBLICATION.—The Secretary of Defense 
shall ensure that the report is made available to the 
public by— 
(A) posting a publicly releasable version of 
the report on a website of the Department of 
Defense; and 
(B) upon request, transmitting the report 
by other means, as long as such transmission is 
at no cost to the Department. 
(d) DEFINITIONS.—In this section:
802 
(1) The terms ‘‘artificial intelligence’’ and ‘‘AI’’ 
have the meaning given the term ‘‘artificial intel-
ligence’’ in section 5002 of the National Artificial 
Intelligence Initiative Act of 2020 (15 U.S.C. 9401). 
(2) The term ‘‘cloud computing’’ has the mean-
ing given the term in Special Publication 800–145 
of the National Institute of Standards and Tech-
nology, or any successor document. 
(3) The term ‘‘cloud provider’’ means an entity 
engaged in the provision, sale, or licensing of cloud 
computing. 
(4) 
The 
term 
‘‘covered 
data 
principles’’ 
means— 
(A) ‘‘DoD data decrees’’ as described in 
the memorandum of the Department of Defense 
titled ‘‘Creating Data Advantage’’ issued May 
5, 2021; and 
(B) Creating Data Advantage (Open 
DAGIR) principles, as defined by the Director 
of the Chief Digital and Artificial Intelligence 
Office 
(5) The term ‘‘covered provider’’ means any 
cloud provider, data infrastructure provider, or arti-
ficial provider that has entered into one or more 
contracts with an aggregate total value of greater
803 
than or equal to $50,000,000 during the period of 
five fiscal years preceding the fiscal year in which a 
contract described in subsection (a) is entered into. 
(6) The term ‘‘data infrastructure’’ means the 
underlying computer, network, and software systems 
that enable the collection, storage, processing, and 
analysis of data, including the ability to record, 
transmit, transform, categorize, integrate, and other-
wise process data generated by digital data systems. 
SEC. 877. BIOINDUSTRIAL COMMERCIALIZATION PROGRAM. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
may establish a program to support the expansion of the 
domestic capacity for bioindustrial manufacturing of crit-
ical biomanufactured products at a commercial level 
through awards to eligible entities for establishing, up-
grading, and retooling of eligible bioindustrial manufac-
turing facilities. 
(b) AWARDS.— 
(1) IN GENERAL.—An entity seeking an award 
under the program shall submit to the Secretary an 
application at such time, in such manner, and con-
taining such information as the Secretary deter-
mines appropriate.
804 
(2) COMPETITIVE
AWARDS.—The Secretary 
shall make each award under the program to an eli-
gible entity in a competitive manner. 
(3) AWARD CRITERIA.—In selecting eligible en-
tities to receive awards under the program, the Sec-
retary shall consider the following criteria: 
(A) The potential of the technology of such 
eligible entity to improve domestic resilience 
and protect critical supply chains for critical 
biomanufactured products. 
(B) How the technology of such eligible en-
tity could help meet the demand for the capa-
bilities required by the next generation of 
warfighters. 
(C) The ability of the eligible bioindustrial 
manufacturing facility with respect to which 
such eligible entity is seeking such award to be 
repurposed and the range of products that such 
eligible bioindustrial manufacturing facilities is 
capable of producing. 
(D) Whether the eligible bioindustrial man-
ufacturing facility with respect to which such 
eligible entity is seeking such award supports 
the goal of wide geographic distribution of bio-
805 
industrial manufacturing facility across the 
United States. 
(E) Whether the eligible bioindustrial man-
ufacturing facility with respect to which such 
eligible entity is seeking such award is located 
in geographic proximity to sources of input ma-
terials for the production of critical biomanufac-
tured products or areas with established 
biomanfuacturing capabilities; and 
(F) Such additional considerations that the 
Secretary deems appropriate. 
(4) USE OF AWARD FUNDS.—A recipient of an 
award under the program may use funds received 
under such award for the establishment, upgrading, 
or retooling of one or more eligible bioindustrial 
manufacturing facilities to produce critical biomanu-
factured products, including the development of 
business or technical plans related to such establish-
ment, upgrading, or retooling. 
(c) OVERSIGHT.—If the Secretary establishes the 
program, the Secretary shall establish reporting require-
ments for recipients of awards under the program which 
shall include requirements for period reports on the fol-
lowing:
806 
(1) The progress of the recipient in estab-
lishing, upgrading, or retooling the eligible bioindus-
trial manufacturing facility with respect to which 
such recipient received such award. 
(2) The estimated timeline and funding require-
ments for the recipient to begin biomanufacturing at 
the eligible bioindustrial manufacturing facility de-
scribed in paragraph (1). 
(3) The products, including the critical bio-
manufactured products, that are or will be produced 
at the eligible bioindustrial manufacturing facility 
described in paragraph (1). 
(4) The progress of the recipient in entering 
into an agreement with the Department of Defense 
or an element thereof to provide critical biomanufac-
tured products, that are or will be produced at the 
eligible bioindustrial manufacturing facility described 
in paragraph (1) once such eligible bioindustrial 
manufacturing facility begins biomanufacturing. 
(d) REPORTS TO CONGRESS.— 
(1) INITIAL REPORT.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary shall submit to the Committees on Armed 
Services of the House of Representatives and Senate 
a report on the plan of the Secretary for allocating
807 
amounts appropriated to the Department of Defense 
to fund the program. 
(2) ANNUAL
REPORTS.—Not later than one 
year after the date of the enactment of this Act, and 
annually thereafter, the Secretary shall submit to 
the Committees on Armed Services of the House of 
Representatives and Senate a report on the activities 
under the program, including— 
(A) a list of the awards made under the 
program as of the date on which the report is 
submitted, including, for each such award— 
(i) the name of the entity that re-
ceived the award; 
(ii) the location of the eligible bio-
industrial manufacturing facility with re-
spect to which such entity received the 
award; 
(iii) 
the 
amount 
of 
the 
award, 
disaggregated by the initial amount of the 
award and any additional amounts pro-
vided under the award; 
(iv) an explanation of the criteria sup-
porting making the award to such entity, 
including a description of any notable tech-
808 
nologies of such entity relevant to the 
award; 
(v) if applicable, an explanation of the 
rational for providing additional amounts 
under the award; and 
(vi) to the extent practicable, and ex-
planation of the effects of the award; 
(B) an identification of amounts available 
to the Department of Defense for making 
awards under the program as of the date on 
which the report is submitted and an expla-
nation of any plans for the use of such 
amounts; 
(C) an explanation of the communication 
between the Secretary and eligible entities seek-
ing an award under the program regarding re-
quirements and timelines for such awards; and 
(D) an explanation of how the establish-
ment, upgrading, or retooling of the eligible bio-
industrial manufacturing facility for which 
awards were made under the program aligns 
with priorities and needs of the Department of 
Defense and national security. 
(e) SUNSET.—
809 
(1) IN GENERAL.—Except as provided by para-
graph (2), this section shall terminate on the date 
that is 10 years after the date of the enactment of 
this Act. 
(2) EXTENSION.—The Secretary may change 
the date on which this section terminates to a date 
that is later than the date on which this section 
would terminate under paragraph (1) if the Presi-
dent determines that the continuation of the pro-
gram is necessary to meet national economic and na-
tional security needs. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘biomanufacturing’’ means the 
utilization of biological systems to develop new and 
advance existing products, tools, and processes at 
commercial scale. 
(2) The term ‘‘critical biomanufactured prod-
uct’’ means a chemical, material, and other product 
that is manufactured using biomanufacturing and is 
relevant to the Department of Defense. 
(3) The term ‘‘eligible bioindustrial manufac-
turing facility’’ means a bioindustrial manufacturing 
facility that— 
(A) is or, if not yet established, will be lo-
cated in the United States; and
810 
(B) is or, pursuant to an award under the 
program, will produce critical biomanufactured 
products. 
(4) The term ‘‘eligible entity’’ means an entity 
that— 
(A) is a private entity; 
(B) applied for an award under the pro-
gram in accordance with subsection (b)(1); and 
(C) meets such other criteria for eligibility 
for an award under the program as determined 
by the Secretary. 
(5) The term ‘‘program’’ means the program 
established under subsection (a). 
(6) The term ‘‘Secretary’’ means the Secretary 
of Defense. 
SEC. 878. COMMON REPOSITORY FOR SUPPLIER INFORMA-
TION. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Assistant Secretary 
of Defense for Industrial Base Policy shall establish a re-
pository of information commonly required for the initial 
vetting by the Department of Defense of contractors ap-
plying to be qualified to supply products or services to the 
Department.
811 
(b) COORDINATED EFFORTS.—The Assistant Sec-
retary of Defense for Industrial Base Policy shall develop 
the repository required under subsection (a) in conjunction 
with or as part of other efforts of an Office of Small Busi-
ness Programs of the Department of Defense to provide 
market research, supply chain resiliency, cybersecurity, 
and secure cloud tools to entities furnishing procurement 
technical assistance under chapter 388 of title 10, United 
States Code, and small manufacturers. 
(c) COOPERATIVE AGREEMENT.—The Assistant Sec-
retary of Defense for Industrial Base Policy may enter 
into a public-private partnership or cooperative agreement 
with one or more contractors of the Department of De-
fense in establishing the repository required by (a) if the 
Assistant Secretary determines that such repository— 
(1) would reduce duplicative efforts or reduce 
the time spent by potential suppliers in providing 
similar information to multiple prime contractors; or 
(2) would streamline or reduce the cost of a 
prime contractor qualifying a supplier for products 
or services to be provided to the Department. 
SEC. 879. CIVIL RESERVE MANUFACTURING NETWORK. 
(a) WORKING GROUP.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary
812 
of Defense shall establish in the Defense Industrial 
Resilience Consortium established under section 
1842 a working group to support the establishment 
of the Civil Reserve Manufacturing Network to pre-
serve the military advantage and bolster the defense 
of the United States and broaden the domestic in-
dustrial base. 
(2) RESPONSIBILITIES.—The working group es-
tablished under paragraph (1) shall— 
(A) identify issues with respect to the 
CRMN; 
(B) develop recommendations for establish-
ment and operation of the CRMN, including 
recommendations for— 
(i) resolving the issues identified 
under subparagraph (A); and 
(ii) incentives to encourage participa-
tion in the CRMN; 
(C) submit to the Secretary the issues 
identified under subparagraph (A) and the rec-
ommendations developed under subparagraph 
(B). 
(3) COLLABORATION.—In carrying out the re-
sponsibilities of the working group established under 
paragraph (1), the working group shall collaborate
813 
with relevant entities, including government, indus-
try, and academia. 
(b) INITIAL PLAN.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of enactment of this Act, the Sec-
retary shall submit to the congressional defense com-
mittees a plan for the establishment of the CRMN 
program that includes— 
(A) a plan to develop a CRMN comprised 
of commercial advanced or adaptive manufac-
turing capabilities or facilities that can rapidly 
transition from the production of commercial 
products for commercial customers to the pro-
duction of products required by the Department 
of Defense; and 
(B) an identification of any statutory or 
regulatory constraints on the establishment or 
effectiveness of the CRMN and recommenda-
tions to streamline the establishment of the 
CRMN, including any changes to existing au-
thorities related to the use of public-private 
partnerships. 
(2) CONSIDERATIONS.—In developing the plan 
required under paragraph (1), the Secretary shall, to 
the extent practicable, incorporate the recommenda-
814 
tions of the working group established under sub-
section (a) submitted to the Secretary under para-
graph (2) of such subsection. 
(c) INTERIM REPORT.—Not later than 270 days after 
the date of enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port on progress of the CRMN, including— 
(1) an assessment of the benefits a factory-as- 
a-service model with respect to accelerating the 
timelines for the establishment of the CRMN, reduc-
ing the costs to the Government of operating the 
CRMN, minimizing obsolescence of commercial ad-
vanced or adaptive manufacturing capabilities or fa-
cilities that are part of the CRMN, and enabling the 
rapid scaling of the CRMN; 
(2) an analysis of improvements in efficiency 
and cost reduction the Department of Defense may 
achieve without sacrificing performance, reliability, 
qualify, or safety from the use of advanced or adapt-
ive manufacturing and application value engineering 
techniques under part 48 of the Federal Acquisition 
Regulation; 
(3) an assessment of potential to improve sup-
ply chain resiliency through the acquisition by the
815 
Government of advanced or adaptive manufacturing 
hardware structures for use by system integrators; 
(4) an identification of any statutory or regu-
latory constraints and recommendations to stream-
line the establishment of the CRMN, including any 
amendments to exiting authorities for public-private 
partnerships; 
(5) an explanation of the progress on devel-
oping an incentive structure that would enable the 
success of the CRMN by sufficiently addressing the 
risk to commercial customers of CRMN participants 
of loss of production if such participants are re-
quired to shift production to meet the needs of the 
Department; 
(6) a list of existing programs of the Depart-
ment that are delayed or have cost overruns result-
ing from a lack of components due to shortages of 
required casting and forging capabilities of manufac-
turers, including— 
(A) the name of the program or contract; 
(B) the components that are delayed or 
contributing to such cost overruns; and 
(C) whether such components could be pro-
duced through alternative means, including ad-
vanced or adaptive manufacturing; and
816 
(7) a strategy to transition existing production 
approaches for the programs identified under para-
graph (6) to advanced or adaptive manufacturing. 
(d) CIVIL RESERVE MANUFACTURING NETWORK 
PROGRAM.— 
(1) IN GENERAL.—After the submission of the 
plan required under subsection (b)(1), the Secretary 
shall establish the CRMN program under which— 
(A) the Secretary shall establish the 
CRMN; and 
(B) advanced or adaptive manufacturers 
participate in the CRMN. 
(2) PARTICIPANT REQUIREMENTS.—Each par-
ticipant shall enter into an agreement with the Sec-
retary under which such participant shall, upon such 
terms and conditions as agreed to by the Secretary 
and the participant, rapidly transition the produc-
tion facilities of such participant to begin production 
of products for the Department of Defense. 
(3) 
SOLICITATION
OF
PROGRAM
PARTICI-
PANTS.—Not later than one year after the date of 
enactment of this Act, the Secretary shall seek to 
enter into agreements with one or more advanced or 
adaptive manufacturers to participate in the CRMN 
under the program.
817 
(4) PARTICIPATION BENEFITS.— 
(A) 
EXPEDITED
QUALIFICATION.—The 
Secretary shall establish expedited procedures 
for qualifying participants to be eligible to sup-
ply products or services to the Department of 
Defense. 
(B) FUNDING.—Subject to the availability 
of appropriations, the Secretary shall award 
funding to participants for— 
(i) expedited qualification and testing 
of products manufactured by the partici-
pant for use by the Department of De-
fense; and 
(ii) non-recurring engineering costs 
associated with the conversion of specifica-
tions of a traditionally manufactured prod-
uct into an appropriate format for ad-
vanced or adaptive manufacturing. 
(e) BRIEFINGS.—Not later than March 1, 2027, and 
annually thereafter for five years, the Secretary of Defense 
shall provide to the congressional defense committees a 
briefing on the progress of the establishment of the CRMN 
under the program. 
(f) DEFINITIONS.—In this section:
818 
(1) The term ‘‘advanced or adaptive manufac-
turer’’ means a manufacturer that uses advanced or 
adaptive manufacturing. 
(2) The term ‘‘advanced or adaptive manufac-
turing’’ means manufacturing through the use of 
interconnected, advanced technologies throughout 
the design and manufacturing process that enables 
modular, adaptable, and efficient manufacturing, in-
cluding software-controlled subtractive manufac-
turing, additive manufacturing, and powder bed fu-
sion manufacturing. 
(3) The term ‘‘advanced or adaptive manufac-
turing hardware structure’’ means hardware used in 
advanced or adaptive manufacturing for the posi-
tioning, mounting, or bracing of a product in the 
manufacturing process. 
(4) The term ‘‘CRMN’’ means a network of 
manufacturers that have entered into an agreement 
with the Secretary under which the manufacturer 
agrees to rapidly transition the manufacturing facili-
ties of such manufacturers that produce commercial 
products for purchasers other than the Department 
of Defense to the production of products for the De-
partment of Defense.
819 
(5) The term ‘‘factory-as-a-service’’ means a 
business model and technological framework that 
provides access to scalable and flexible manufac-
turing resources as service, enables rapid reconfig-
uration of production lines, and real-time collabora-
tion across geographically dispersed facilities. 
(6) The term ‘‘participant’’ means an advanced 
or adaptive manufacturer that is participating in the 
CRMN under the program. 
(7) The term ‘‘program’’ means the program 
established under subsection (d)(1). 
(8) The term ‘‘Secretary’’ means the Secretary 
of Defense. 
(g) CONFIRMING AMENDMENT.—Section 3243 of 
title 10, United States Code, is amended— 
(1) by redesignating subsections (e), (f), and 
(g) as subsections (f), (g), and (h), respectively; and 
(2) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) ADVANCED
OR
ADAPTIVE
MANUFACTURING 
QUALIFICATIONS.—The head of the agency shall establish 
a process to streamline qualification of sources who use 
advanced manufacturing techniques, including those using 
a digital adaptive production system. Once a source is 
qualified, the head of the agency shall not require addi-
820 
tional qualification for sources or products produced un-
less material changes have been made to the manufac-
turing process.’’. 
SEC. 880. REVIEW AND ASSESSMENT OF NON-DOMESTIC AD-
DITIVE MANUFACTURING EQUIPMENT AND 
ASSOCIATED SOFTWARE SUPPLYING THE DE-
FENSE INDUSTRIAL BASE. 
(a) REVIEW
AND ASSESSMENT REQUIRED.—Not 
later than 90 days after the date of the enactment of this 
Act, the Under Secretary of Defense for Acquisition and 
Sustainment, in coordination with each Secretary of a 
military department, shall seek to enter into an agreement 
with a federally funded research and development center 
to conduct an independent review, analysis, and assess-
ment of the use of non-domestic additive manufacturing 
equipment and associated software programs that supply 
components or capability to the United States defense in-
dustrial base and the effect of such use. 
(b) REPORT.— 
(1) IN GENERAL.—The agreement described in 
subsection (a) shall require that the federally funded 
research and development center that is party to 
such agreement submit to the Under Secretary of 
Defense for Acquisition and Sustainment a report on 
the findings of the review, assessment, and analysis
821 
not later than one year after the date on which the 
center entered into such agreement. 
(2) SUBMISSION
TO
CONGRESS.—The Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment shall submit such report to the con-
gressional defense committees upon receipt of such 
report. 
(3) ELEMENTS.—The report described in para-
graph (1) shall include the following elements: 
(A) An assessment of manufacturers in the 
United States defense industrial base using 
non-domestic additive manufacturing equip-
ment. 
(B) An identification of additive manufac-
turing equipment, including 3D printers, that 
are of Chinese or Russian origin, and that are 
in the supply chain of the United States defense 
industrial base. 
(C) A review of non-domestic additive 
manufacturing equipment suppliers that work 
with adversarial foreign militaries and have a 
presence in the United States defense industrial 
base. 
(D) A security assessment of intellectual 
property risks of software programs associated
822 
with additive manufacturing equipment that are 
provided to— 
(i) the United States defense indus-
trial base; and 
(ii) additive manufacturing equipment 
suppliers based in adversarial foreign coun-
tries. 
(4) FORM; PUBLIC AVAILABILITY.—The report 
described in paragraph (1) shall be submitted in un-
classified form, but may include a classified annex. 
(c) INTERIM BRIEFING.—Not later than 180 days 
after the date of the enactment of this Act, the Under 
Secretary of Defense for Acquisition and Sustainment, in 
coordination with each Secretary of a military department, 
shall provide to the Committees on Armed Services of the 
Senate and the House of Representatives a briefing on the 
plan to assess the United States defense industrial base 
for the use and effect of non-domestic additive manufac-
turing equipment and associated software programs. 
SEC. 880A. ASSESSMENT OF INDUSTRIAL BASE FOR TUR-
BOJET PYROTECHNIC DEVICES. 
(a) FINDINGS.—Congress finds the following: 
(1) Turbojet pyrotechnic devices are critical for 
the operation of aerial targets and unmanned sys-
823 
tems used in military training and weapons testing 
and deployment. 
(2) Excessive lead times and limited domestic 
production capacity for such devices pose risks to 
readiness and operational effectiveness. 
(b) REPORT REQUIRED.—Not later than March 1, 
2026, the Under Secretary of Defense for Acquisition and 
Sustainment, in consultation with the Secretary of the 
Army and the Assistant Secretary of Defense for Indus-
trial Base Policy, shall submit to the congressional defense 
committees a report assessing— 
(1) projected demand for turbojet pyrotechnic 
devices through fiscal year 2030; 
(2) the current United States production capac-
ity, scalability, and lead times for such devices; 
(3) vulnerabilities in the supply chain for such 
devices 
and 
the 
potential 
effects 
of 
such 
vulnerabilities on military readiness; 
(4) potential commercial or dual-use applica-
tions for such devices; and 
(5) recommendations for reducing lead times, 
diversifying suppliers, and strengthening the indus-
trial base for such devices. 
(c) IMPLEMENTATION AUTHORITY.—Following com-
pletion of the report under subsection (b), the Secretary
824 
of Defense may carry out activities to implement the rec-
ommendations set forth in the report, which may include 
activities such as pilot programs, entering into partner-
ships, and such other activities as the Secretary deter-
mines appropriate. 
SEC. 880B. MODIFICATIONS TO DEFENSE INDUSTRIAL BASE 
FUND. 
(a) IN GENERAL.—Section 4817 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsections: 
‘‘(g) ELIGIBLE USES
OF AUTHORITIES.—(1) The 
Secretary may use the authorities provided by this section 
with respect to upstream, mid-stream, and downstream 
supply chains, including material, material production, 
components, subassemblies, and finished products, testing 
and qualification, infrastructure, facility construction and 
improvement, and equipment needed directly for the fol-
lowing: 
‘‘(A) Castings and forgings. 
‘‘(B) Kinetic capabilities, including sensors, tar-
geting systems, and delivery platforms. 
‘‘(C) Microelectronics. 
‘‘(D) Machine tools, including but not limited to 
subtractive, additive, convergent, stamping, forging,
825 
abrasives, metrology, and other production equip-
ment. 
‘‘(E) Critical minerals, materials, and chemi-
cals. 
‘‘(F) Workforce for the defense industrial base. 
‘‘(G) Advanced manufacturing capacity, includ-
ing echelon manufacturing forward in the Indo-Pa-
cific Command theater. 
‘‘(H) Unmanned vehicles, including subsurface, 
surface, land, air one-way, attritables, and launch 
and recovery platforms. 
‘‘(I) Manned aircraft. 
‘‘(J) Ground systems. 
‘‘(K) Power sources. 
‘‘(L) Ship and submarine, including assembly 
and automation technologies and capabilities, new or 
modernized infrastructure for new construction or 
maintenance and sustainment and battle damage re-
pair. 
‘‘(M) Other materiel solutions required to sup-
port Indo-Pacific Command operational plans as re-
quired. 
‘‘(N) Defense space systems. 
‘‘(2) The Secretary may not use the authorities pro-
vided by this section for any activity in a covered country.
826 
‘‘(3) The Secretary may not use the authorities pro-
vided by this section for a purpose not described in para-
graph (1) unless, not less than 30 days before doing so, 
the Secretary— 
‘‘(A) determines that— 
‘‘(i) the use of the authority for that pur-
pose is essential to the national security inter-
ests of the United States; and 
‘‘(ii) without the use of the authority for 
that purpose, United States industry cannot 
reasonably be expected to provide the capability 
needed in a timely manner; and 
‘‘(B) submits to the congressional defense com-
mittees a report on the determination that includes 
appropriate explanatory material. 
‘‘(h) GRANTS AND OTHER INCENTIVES FOR DOMES-
TIC INDUSTRIAL BASE CAPABILITIES.—To create, main-
tain, protect, expand, or restore domestic industrial base 
capabilities essential for the national security interests of 
the United States, the Secretary may make provision 
for— 
‘‘(1) use of contracts, grants, or other trans-
action authorities, including cooperative agreements; 
‘‘(2) incentives for the private sector to develop 
capabilities in areas of national security interest;
827 
‘‘(3) during the 5-year period beginning on the 
date of the enactment of this subsection, making 
awards to third party entities to support investments 
in small- and medium-sized entities working in areas 
of national security interest, including debt and eq-
uity investments, that would benefit missions of the 
Department of Defense; and 
‘‘(4) subsidies to offset market manipulation or 
ensure allied and domestic viability of grants made 
from other market uncertainties. 
‘‘(i) DEFENSE INDUSTRIAL BASE PURCHASE COM-
MITMENT PROGRAM.—(1) To create, maintain, protect, 
expand, or restore industrial base capabilities essential for 
the national security interests of the United States, the 
Secretary may make provision for purchase commitments 
for— 
‘‘(A) Federal Government use or resale of an 
industrial resource or a critical technology item; 
‘‘(B) the encouragement of exploration, develop-
ment, and mining of strategic and critical materials; 
‘‘(C) development of other materials and com-
ponents; 
‘‘(D) the development of production capabilities; 
and
828 
‘‘(E) the increased use of emerging technologies 
in defense program applications and the rapid tran-
sition of emerging technologies— 
‘‘(i) from Federal Government-sponsored 
research and development to commercial appli-
cations; and 
‘‘(ii) from commercial research and devel-
opment to national defense applications. 
‘‘(2)(A) Except as provided by subparagraph (B), 
purchase commitments under paragraph (1) may be made 
without regard to the limitations of existing law (other 
than section 1341 of title 31), for such quantities, and 
on such terms and conditions, including advance pay-
ments, and for such periods, but not extending beyond a 
date that is not more than 10 years from the date on 
which such purchase was initially made, as the Secretary 
deems necessary. 
‘‘(B) Purchases commitments under paragraph 
(1) involving higher than established ceiling prices 
(or if no such established ceiling prices exist, cur-
rently prevailing market prices) or that result in an 
anticipated loss on resale shall not be made, unless 
it is determined that supply of the materials could 
not be effectively increased or provisioned at lower 
prices or on terms more favorable to the Federal
829 
Government, or that such purchases are necessary to 
assure the availability to the United States of over-
seas supplies. 
‘‘(3)(A) The Secretary may take the actions described 
in subparagraph (B), if the Secretary finds that— 
‘‘(i) under generally fair and equitable ceil-
ing prices, for any raw or nonprocessed mate-
rial or component, there will result a decrease 
in supplies from high-cost sources of such mate-
rial and that the continuation of such supplies 
is necessary to carry out the objectives of this 
section; or 
‘‘(ii) an increase in cost of transportation 
is temporary in character and threatens to im-
pair maximum production or supply in any area 
at stable prices of any materials. 
‘‘(B) Upon a finding under subparagraph (A), 
the Secretary may make provision for subsidy pay-
ments on any such produced material from other 
than covered countries, in such amounts and in such 
manner (including purchase commitments of such 
material or component and its resale at a loss, and 
on such terms and conditions, as the Secretary de-
termines to be necessary to ensure that supplies 
from such high-cost sources are continued, or that
830 
maximum production or supply in such area at sta-
ble prices of such materials is maintained, as the 
case may be. 
‘‘(4) If the Secretary determines that such action will 
aid the national security interests of the United States, 
the Secretary is authorized— 
‘‘(A) to procure and install additional equip-
ment, facilities, processes or improvements to plants, 
factories, and other industrial facilities owned by the 
Federal Government; 
‘‘(B) to procure and install equipment including 
owned by the Federal Government in plants, fac-
tories, and other industrial facilities owned by pri-
vate persons; 
‘‘(C) to provide for constructing new facilities, 
the modification, or expansion of privately owned fa-
cilities, including the modification or improvement of 
production processes, when taking actions under this 
subsection or subsection (h); 
‘‘(D) to sell or otherwise transfer equipment 
owned by the Federal Government and installed 
under this subsection to the owners of such plants, 
factories, or other industrial facilities; 
‘‘(E) to construct facilities for the purposes de-
scribed in section subsection (g)(1); and
831 
‘‘(F) to apply contracts, grants, or other trans-
actions authorities. 
‘‘(5)(A) Metals, minerals, materials, and components 
acquired pursuant to this subsection which, in the judg-
ment of the Secretary, are excess to the needs of programs 
under this section, shall be transferred to the National De-
fense Stockpile established by the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98 et seq.), or other 
national reserves if available, when the Secretary deems 
such action to be in the public interest. 
‘‘(B) Transfers made pursuant to this para-
graph shall be made without charge against or reim-
bursement from funds appropriated for the purposes 
of the Strategic and Critical Materials Stock Piling 
Act (50 U.S.C. 98 et seq.), or other national re-
serves if available, except that costs incident to such 
transfer, other than acquisition costs, shall be paid 
or reimbursed from such funds. 
‘‘(6) When, in the judgment of the Secretary, it will 
aid the national security interests of the United States, 
the Secretary may make provision for the development and 
qualification a of substitutes for strategic and critical ma-
terials, components, critical technology items, and other 
industrial resources.
832 
‘‘(j) STRENGTHENING DOMESTIC PRODUCTIVE CA-
PACITY.—(1) The Secretary may provide appropriate in-
centives to develop, maintain, modernize, restore, and ex-
pand the productive capacities of sources for strategic and 
critical materials, components, critical technology items, 
and industrial resources essential for the execution of the 
national security strategy of the United States. 
‘‘(2)(A) The Secretary shall take appropriate actions 
to ensure that strategic and critical materials, compo-
nents, critical technology items, and industrial resources 
are available from reliable sources when needed to meet 
defense requirements during peacetime, graduated mobili-
zation, and national emergency. 
‘‘(B) For purposes of this paragraph, appro-
priate action may include— 
‘‘(i) restricting contract solicitations to re-
liable sources; 
‘‘(ii) stockpiling or placing into reserve 
strategic and critical materials, components, 
and critical technology items; 
‘‘(iii) planning for necessary long-lead 
times for acquiring such materials, components, 
and items; or 
‘‘(iv) developing and qualifying substitutes 
for such materials, components, and items.
833 
‘‘(k) FUNDING.—Subsections (g), (h), (i), and (j) 
may only be carried out using amounts appropriated on 
or after the date of the enactment of this subsection. 
‘‘(l) ANNUAL REPORT.—(1) Not later than one year 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2026, and annually 
thereafter, the Secretary shall submit to the congressional 
defense committee a report evaluating investments made 
and any other activities carried out using amounts in the 
Fund during the year preceding submission of the report. 
‘‘(2) Each report required by paragraph (1) shall in-
clude— 
‘‘(A) measures of effectiveness of the invest-
ments and activities described in that paragraph in 
meeting the needs of the Department of Defense and 
the defense industrial base; 
‘‘(B) an evaluation of the return on investment 
of all ongoing investments from the Fund; and 
‘‘(C) a description of efforts to coordinate ac-
tivities carried out using amounts in the Fund with 
activities to support the defense industrial base car-
ried out under other authorities. 
‘‘(3) In preparing a report required by paragraph (1), 
the Secretary shall take into account the advice of the de-
834 
fense industry and such other individuals as the Secretary 
considers relevant. 
‘‘(m) COORDINATION WITH OTHER DEFENSE IN-
DUSTRIAL BASE ACTIVITIES.—Not later than 90 days 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2026, the Secretary 
shall submit to the congressional defense committees a re-
port detailing how activities carried out under this section 
will be coordinated with— 
‘‘(1) activities carried out using amounts in the 
Defense Production Act Fund under section 304 of 
the Defense Production Act of 1950 (50 U.S.C. 
4534); 
‘‘(2) activities of the Office of Strategic Capital; 
and 
‘‘(3) any other efforts designed to enhance the 
defense industrial base. 
‘‘(n) DEFINITIONS.—In this section: 
‘‘(1) The term ‘chokepoint’ means a situation in 
which— 
‘‘(A) components of the munitions supply 
chains, including all elements of the munitions 
supply chain such as chemicals, casings, or 
other materials, are produced by only one reli-
able source; or
835 
‘‘(B) the increased production of a compo-
nent would significantly increase total output of 
munitions. 
‘‘(2) The term ‘covered country’ means— 
‘‘(A) the Russian Federation; 
‘‘(B) the Democratic People’s Republic of 
Korea; 
‘‘(C) the Islamic Republic of Iran; and 
‘‘(D) the People’s Republic of China. 
‘‘(3) The term ‘reliable source’ means a citizen 
or business entity organized under the laws of— 
‘‘(A) the United States or any territory or 
possession of the United States; 
‘‘(B) a country of the national technology 
and industrial base, as defined in section 4801; 
or 
‘‘(C) a qualifying country, as defined in 
section 225.003 of the Defense Federal Acquisi-
tion Regulation Supplement or any successor 
document. 
‘‘(5) The term ‘strategic and critical materials’ 
has the meaning given that term in section 12(1) of 
the Strategic and Critical Materials Stock Piling Act 
(50 U.S.C. 98h–3(1)).’’.
836 
(b) MODIFICATIONS TO THE OFFICE OF STRATEGIC 
CAPITAL.—Section 149 of title 10, United States Code, 
is amended— 
(1) in subsection (e)— 
(A) in paragraph (3)(A)(ii)(l)(bb), by in-
serting ‘‘or with regard to loans that include an 
equity feature, the Director reasonably believes 
the rate of return on the portfolio of such loans 
will exceed the rate of return on investment of 
a loan at the yield on marketable securities of 
a similar maturity to the maturity of the loan 
on the date of execution of the loan agreement’’ 
before the period at the end; 
(B) in paragraph (3), by adding at the end 
the following new subparagraph: 
‘‘(D)(i) The Director may support an eligi-
ble investment selected pursuant to this sub-
section with funds, or use other mechanisms for 
the purpose of purchasing, and may make and 
fund commitments to purchase, invest in, make 
pledges in respect of, or otherwise acquire, eq-
uity of the eligible entity, receiving support for 
the eligible investment, or any of its parent or 
subsidiary companies, including as a limited 
partner or other investor in investment funds,
837 
upon such terms and conditions as the Director 
may determine. 
‘‘(ii) The Director shall develop criteria, 
taking into consideration the national security 
and economic interests of the United States, 
pursuant to which the Director may hold, sell, 
or otherwise liquidate support for an investment 
described under clause (i). 
‘‘(iii) Solely for the purposes of purchasing 
equity securities under this subparagraph, the 
Director shall be treated as a qualified pur-
chaser (as defined in section 2(a)(51) of the In-
vestment Company Act of 1940 (15 U.S.C. 
80a–2(a)(51))) and as an accredited investor 
under section 2 of the Securities Act of 1933 
(15 U.S.C. 77d).’’; and 
(C) in paragraph (8), by striking ‘‘after’’ 
and all that follows through the period at the 
end and inserting the following: ‘‘after the for-
mal approval of the use of any capital assist-
ance under this subsection.’’; and 
(2) by amending subsection (f)(1) to read as 
follows: 
‘‘(1) The term ‘capital assistance’ means a loan, 
loan guarantee, or technical assistance, or the pur-
838 
chase of or investment in equity, (including options, 
warrants, or other financing in a security with sub-
ordination or nonamortization characteristics as the 
Director determines to be substantially similar to eq-
uity financing).’’. 
Subtitle G—Small Business Matters 
SEC. 881. DEPARTMENT OF DEFENSE CONTRACTING GOALS 
FOR SMALL BUSINESS CONCERNS OWNED 
AND CONTROLLED BY VETERANS. 
Chapter 387 of title 10, United States Code, is 
amended by adding at the end the following new section: 
‘‘§ 4903. Small business concerns owned and con-
trolled by veterans: contracting goals 
‘‘(a) CONTRACTING GOALS.—In order to increase 
contracting opportunities for small business concerns 
owned and controlled by veterans, the Secretary shall es-
tablish a goal for each fiscal year for participation in De-
partment contracts (including subcontracts) by small busi-
ness concerns owned and controlled by veterans that is 
not less than the Governmentwide goal for that fiscal year 
for participation by small business concerns owned and 
controlled by service-disabled veterans under section 
15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 
‘‘(b) SOLE SOURCE CONTRACTS
FOR CONTRACTS 
ABOVE SIMPLIFIED ACQUISITION THRESHOLD.—For pur-
839 
poses of meeting the goals under subsection (a), a con-
tracting officer may award a contract to a small business 
concern owned and controlled by veterans using proce-
dures other than competitive procedures if— 
‘‘(1) such concern is determined to be a respon-
sible source with respect to performance of such con-
tract; 
‘‘(2) the anticipated award price of the contract 
(including options) will not exceed the amounts es-
tablished in section 36(c)(2) of the Small Business 
Act (15 U.S.C. 657f(c)(2)); and 
‘‘(3) in the estimation of the contracting officer, 
the contract award can be made at a fair and rea-
sonable price that offers best value to the United 
States. 
‘‘(c) USE OF RESTRICTED COMPETITION.—Except as 
provided in subsection (b), for purposes of meeting the 
goals under subsection (a) and in accordance with this sec-
tion, a contracting officer may award contracts on the 
basis of competition restricted to small business concerns 
owned and controlled by veterans if the contracting officer 
has a reasonable expectation that two or more small busi-
ness concerns owned and controlled by veterans will sub-
mit offers and that the award can be made at a fair and
840 
reasonable price that offers best value to the United 
States. 
‘‘(d) ELIGIBILITY
OF
SMALL
BUSINESS
CON-
CERNS.—A small business concern may be awarded a con-
tract under this section only if the small business concern 
and the veteran owner of the small business concern are 
listed in the database described in section 36(f)(1) of the 
Small Business Act (15 U.S.C. 657f(f)(1)). 
‘‘(e) SMALL BUSINESS ACT DEFINITIONS.—In this 
section, the terms ‘small business concern’, ‘small business 
concern owned and controlled by veterans’, and ‘small 
business concern owned and controlled by service-disabled 
veterans’ have the meanings given, respectively, under sec-
tion 3 of the Small Business Act (15 U.S.C. 632).’’. 
SEC. 882. PERMANENT EXTENSION OF PHASE FLEXIBILITY 
AND INCLUSION OF SMALL BUSINESS TECH-
NOLOGY TRANSFER PROGRAM. 
Section 9(cc) of the Small Business Act (15 U.S.C. 
638(cc)) is amended— 
(1) by striking ‘‘During fiscal years 2012 
through 2025, the’’ and inserting ‘‘The’’; and 
(2) by inserting ‘‘or STTR program’’ after 
‘‘SBIR program’’ each place it appears.
841 
SEC. 883. AUTHORITY TO MAKE ADDITIONAL SEQUENTIAL 
PHASE II AWARDS UNDER THE SMALL BUSI-
NESS INNOVATION RESEARCH PROGRAM OR 
SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM. 
(a) IN GENERAL.—Notwithstanding paragraph (1) of 
section 9(ff) of the Small Business Act (15 U.S.C. 
638(ff)(1)), during each of fiscal years 2026 through 
2029, the Secretary of Defense may award one additional 
sequential Phase II SBIR award or one additional sequen-
tial Phase II STTR award during each such fiscal year 
to a small business concern that received an additional 
Phase II award under such paragraph (1) for continued 
work on the project for which the small business concern 
received such award. 
(b) LIMITATIONS.—In carrying out this section, the 
Secretary of Defense— 
(1) may use not more than 3 percent of the 
funds allocated to the SBIR program or STTR pro-
gram of the Department, as applicable; 
(2) shall minimize, to the maximum extent pos-
sible, the number of awards made using the author-
ity under this section; and 
(3) shall notify the Administrator of the Small 
Business Administration of the use of the authority 
under this section before making an award under
842 
this section that includes an explanation of why the 
Secretary elected to use the authority under this 
paragraph instead of seeking a Phase III award for 
such project. 
(c) DEFINITIONS.—In this section, the terms 
‘‘SBIR’’, ‘‘STTR’’, and ‘‘Phase II’’ have the meanings 
given, respectively, in section 9 of the Small Business Act 
(15 U.S.C. 638). 
SEC. 884. CONGRESSIONAL NOTIFICATION REQUIREMENTS 
FOR SMALL BUSINESS CONCERNS FOR ANY 
SIGNIFICANT CONTRACT TERMINATION. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall revise sec-
tion 249.7001 of the Department of Defense Supplement 
to the Federal Acquisition Regulation (or any successor 
regulation) to extend the congressional notification re-
quirements for any significant contract termination to in-
clude contracts awarded to a small business concern (as 
defined under section 3 of the Small Business Act (15 
U.S.C. 632)). 
SEC. 885. AUTHORIZATION OF USE OF APEX ACCELERA-
TORS. 
Notwithstanding any other provision of law, APEX 
Accelerators may assist small business concerns (as de-
fined under section 3 of the Small Business Act (15
843 
U.S.C. 632)) in receiving contracts for the production of 
and research on defense articles (as defined in section 301 
of title 10, United States Code) under the partnership 
among Australia, the United Kingdom, and the United 
States (commonly known as ‘‘AUKUS’’). 
SEC. 886. CMMC CERTIFICATION ASSESSMENT SUPPORT. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of De-
fense, in consultation with the Administrator of the Small 
Business Administration and the Commissioner of the In-
ternal Revenue Service, shall submit to the Committees 
on Ways and Means and on Small Business of the House 
of Representatives a report identifying each Federal re-
source and each business or personal tax credit or deduc-
tion that may be available to a small business concern (as 
defined under section 3 of the Small Business Act (15 
U.S.C. 632)) for the costs of a Cybersecurity Maturity 
Model Certification assessment described in part 170 of 
title 32, Code of Federal Regulations. 
(b) PUBLICATION.—Not later than 30 days after the 
Secretary of Defense submits the report required by sub-
section (a), the Secretary shall make publicly available on 
a website of the Department of Defense a list of the Fed-
eral resources and business and personal tax credits and 
deductions identified in such report, including a descrip-
844 
tion of each such Federal resource and business or per-
sonal tax credit or deduction. 
(c) FEDERAL RESOURCE DEFINED.—In this section, 
the term ‘‘Federal resource’’ means a program or activity 
of the Federal Government under which Federal funds are 
made available or awarded, including Federal loans, 
grants, and other Federal awards and assistance. 
SEC. 887. STUDY ON CERTAIN CONTRACTS AND AWARDS TO 
SMALL BUSINESS CONCERNS. 
(a) STUDY REQUIRED.—The Secretary of Defense, 
acting through the Office of Small Business Programs, 
shall carry out a study to review contracts awarded with 
a value at or below the simplified acquisition threshold (as 
defined in section 3015 of title 10, United States Code) 
to determine if the Department of Defense is ensuring full 
consideration and application of requirements relating to 
small business concerns (as defined in section 3 of the 
Small Business Act (15 U.S.C. 632)). 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
House of Representatives and the Senate, the Committee 
on Small Business of the House of Representatives, and 
the Committee on Small Business and Entrepreneurship
845 
of the Senate a report on the results of the study required 
by this section. Such report shall include— 
(1) the total dollar amount of contracts award-
ed with a value at or below the simplified acquisition 
threshold during the five-year period preceding the 
date of the report, including the percentage of such 
contracts and the aggregate dollar amount of such 
contracts awarded to small business concerns; 
(2) an overview of the types of contracts with 
a value at or below the simplified acquisition thresh-
old, and description of the products or services, that 
were not awarded to small business concerns; 
(3) an overview of the reasons why a contract 
with a value at or below the simplified acquisition 
threshold may not be set aside for small business 
concerns; 
(4) any trends, themes, or patterns of contracts 
with a value at or below the simplified acquisition 
threshold that were awarded to entities that are not 
small business concerns when such a contract should 
have been subject to a requirement to be set aside 
for small business concerns; and 
(5) recommendations for changes to statute, 
regulation, policy, or guidance that would ensure full 
consideration and application of requirement to set
846 
aside contracts for small business concerns, particu-
larly contracts with a value at or below the sim-
plified acquisition threshold. 
Subtitle H—Other Matters 
SEC. 891. SPECIAL OPERATIONS COMMAND URGENT INNO-
VATIVE TECHNOLOGIES AND CAPABILITIES 
PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Commander of the 
United States Special Operations Command shall carry 
out a pilot program to be known as the ‘‘USSOCOM Ur-
gent Innovative Technologies and Capabilities Pilot Pro-
gram’’ (in this section referred to as the ‘‘Program’’) to 
accelerate the research, development, testing, procure-
ment, and initial sustainment of innovative technologies 
and equipment that enhance the operational capabilities 
of Special Operations Forces to meet emerging mission re-
quirements. 
(b) REQUIREMENTS.—The Commander shall— 
(1) establish procedures for component special 
operations units to submit requests to the Com-
mander for the inclusion of innovative technologies 
and equipment in the Program; and 
(2) use authorities under section 167(e)(4) of 
title 10, United States Code, to carry out the Pro-
gram.
847 
(c) REPORT.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this section, and 
annually thereafter for the duration of the Program, 
the Commander of the United States Special Oper-
ations Command shall submit to the congressional 
defense committees a report on the implementation 
and effectiveness of the Program. 
(2) CONTENTS.—Each report shall include the 
following: 
(A) A summary of activities carried out 
under the Program along with documentation 
of planned expenditures. 
(B) An assessment of the effect of innova-
tive technologies and equipment included in the 
Program on the operational capabilities of the 
United States Special Operations Command. 
(C) Recommendations for the continuation, 
expansion, or modification of the Program. 
(D) A description of any challenges en-
countered and lessons learned. 
(E) A description of any action using es-
tablished procedures for a reprogramming of 
funds in an amount greater than the approved
848 
amount for such reprogramming, as established 
by Congress, to carry out the Program. 
(d) SUNSET.—The authority to carry out the Pro-
gram under this section shall terminate on the date that 
is five years after the date of the enactment of this Act. 
SEC. 892. INVENTORY OF TECHNICAL DATA RIGHTS FOR 
WEAPON SYSTEM SUSTAINMENT. 
(a) INVENTORY REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, each service 
acquisition executive shall initiate a process to establish 
an inventory of the required covered data related to pro-
cured covered systems. Such inventory shall be made avail-
able for use by employees of the Department of Defense 
or depot maintenance support contractors. 
(b) REVIEW OF REQUIREMENTS.—In conducting the 
inventory required by subsection (a), each service acquisi-
tion executive shall review requirements for covered data 
identified during the design, development, and procure-
ment of a covered system including, as applicable— 
(1) the planning for sustainment and the devel-
opment of a life cycle cost estimate for the covered 
system required by paragraphs (4) and (6) of section 
4251(b) of title 10, United States Code;
849 
(2) the life-cycle sustainment planning required 
by paragraph (10) of section 4252(b) of title 10, 
United States Code; 
(3) the estimate of requirements for core logis-
tics capabilities required by paragraph (11) of such 
section 4252(b); 
(4) the actions planned to acquire technical 
data required by paragraph (13) of such section 
4252(b); 
(5) the assessment of the long-term technical 
data needs required by subsection (a)(1)(A) of sec-
tion 3774 of title 10, United States Code; 
(6) the acquisition strategy to provide for tech-
nical data rights required by subsection (a)(1)(B) of 
such section 3774; 
(7) the assessment and strategy related to in-
clusion of a priced contract option required by sub-
section (b)(2) of such section 3774; 
(8) the assessment and strategy related to the 
potential for changes in the sustainment plan over 
the life cycle of the covered system required by sub-
section (b)(3) of such section 3774; 
(9) the product support strategy developed by 
the 
product 
support 
manager 
under 
section 
4324(b)(1)(A) of title 10, United States Code, as in
850 
effect on the day before the date of the enactment 
of this Act; 
(10) requirements related to rights in technical 
data as described in section 3772 of title 10, United 
States Code. 
(11) requirements related to acquisition or li-
censing of intellectual property required by section 
3791 of title 10, United States Code, as it pertains 
to the covered system; 
(12) the intellectual property management plan 
for 
product 
support 
required 
by 
section 
4324(b)(1)(G) of title 10, United States Code, as in 
effect on the day before the date of the enactment 
of this Act; and 
(13) the identification of major maintenance 
and overhaul requirements that will be required dur-
ing the life cycle of the covered system required by 
section 4324(b)(1)(J) of title 10, United States 
Code, as in effect on the day before the date of the 
enactment of this Act. 
(c) IDENTIFICATION AND ASSESSMENT.—After com-
pleting the inventory required by subsection (a), the serv-
ice acquisition executive shall publish an assessment of 
covered data related to procured covered systems. In con-
851 
ducting this assessment, the service acquisition executive 
shall, for each requirement identified in subsection (b)— 
(1) confirm that the service acquisition execu-
tive has, or has access to, the covered data described 
in the requirement; 
(2) describe the physical or electronic storage 
location of the covered data that is in the possession 
of the service acquisition executive concerned, or the 
method of access to the covered data, as applicable; 
and 
(3) describe the category of rights, including 
customized commercial licenses or specially nego-
tiated licenses, associated with the covered data. 
(d) IDENTIFICATION OF INSUFFICIENCY.—Based on 
the review of requirements in subsection (b) and the as-
sessment required by subsection (c), the service acquisition 
executive shall specifically identify any insufficiency in the 
possession of, or access to, covered data that negatively 
affects the ability of a Secretary of a military department 
to effectively operate the procured covered system and 
maintain it in a cost-effective manner. 
(e) COST ESTIMATE.—For each procured covered 
system, the service acquisition executive shall— 
(1) work with any contractor for such procured 
covered system to—
852 
(A) determine the best approach to remedy 
an insufficiency identified pursuant to sub-
section (d) in the most cost-effective manner 
practicable; and 
(B) develop a cost estimate associated such 
remedy; and 
(2) provide to the Secretary of Defense and 
chiefs of the Armed Forces the cost estimate de-
scribed in paragraph (1)(B) and a recommended 
plan of action, including the funding required to pro-
vide such remedy. 
(f) QUARTERLY UPDATES TO CONGRESS.—Not later 
than April 1, 2026, and every 90 days thereafter until the 
inventory required by subsection (a) is complete, each 
service acquisition executive shall provide to the congres-
sional defense committees a briefing on— 
(1) progress made toward completing the inven-
tory; 
(2) a summary of findings from the inventory; 
(3) efforts to remedy an insufficiency in covered 
data, including a summary of actions to fund such 
remedy; 
(4) a description of the method used in negoti-
ating with any relevant contractor to access covered 
data, including use of customized commercial li-
853 
censes or specially negotiated licenses, associated 
with the covered data; and 
(5) any lessons learned to plan for and acquire 
covered data related to procured covered systems. 
(g) ADVICE AND ASSISTANCE.—The cadre of intellec-
tual property experts established under section 1707 of 
title 10, United States Code, shall provide advice, assist-
ance, and resources to a service acquisition executive in 
conducting an inventory required by this section. 
(i) DEFINITIONS.—In this Act: 
(1) The term ‘‘service acquisition executive’’ 
has the meaning given in section 101 of title 10, 
United States Code. 
(2) The term ‘‘covered system’’ means— 
(A) a major defense acquisition program 
as defined in section 4201 of title 10, United 
States Code; or 
(B) an acquisition program or project that 
is carried out using the rapid prototyping or 
rapid fielding acquisition pathway under section 
3602 of such title that is estimated by the Sec-
retary of Defense to require an eventual total 
expenditure described in section 4201(a)(2) of 
such title.
854 
(3) The term ‘‘covered data’’ means technical 
data and computer software. 
(4) The term ‘‘depot maintenance support con-
tractor’’ means a contractor performing a contract 
under the direction and control of the Secretary of 
Defense in support of depot-level maintenance and 
repair (as defined in section 2460 of title 10, United 
States Code). 
(5) The term ‘‘procured covered system’’ means 
a covered system for which the Secretary of Defense 
has taken delivery of, has access to, or has nego-
tiated terms to enable guaranteed access or delivery 
at a future date, for use by employees of the Depart-
ment of Defense or depot maintenance support con-
tractors. 
SEC. 893. ESTABLISHING BIOBASED PRODUCT MERIT GUID-
ANCE. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Under Secretary 
of Defense for Research and Engineering, in coordination 
with the Secretaries of the military departments, shall de-
velop and make public available guidance for private enti-
ties on how such entities can effectively prove that a 
biobased product of such entity provides capabilities meet-
ing the requirements of the Department of Defense.
855 
(b) ANALYSIS.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct an analysis of the 
process of the Department of Defense for developing 
requirements to determine if such processes inten-
tionally or unintentionally exclude biobased products. 
(2) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Comptroller 
General of the United States shall submit to the 
congressional defense committees a report on the 
findings of the analysis conducted under paragraph 
(1) and, if Comptroller General determines through 
such analysis that the processes described in such 
paragraph exclude biobased products, containing rec-
ommendations of the Comptroller General to reduce 
such exclusion. 
(c) BIOBASED PRODUCT DEFINED.—In this section, 
the term ‘‘biobased product’’ means a product manufac-
tured, produced, or developed through the application liv-
ing organisms to alter living or non-living materials. 
SEC. 894. COMPTROLLER GENERAL ASSESSMENT OF COM-
PETITIVE EFFECTS OF MERGERS AND ACQUI-
SITIONS OF DEFENSE CONTRACTORS. 
The Comptroller General of the United States shall 
conduct an assessment and submit to the congressional
856 
defense committees a report on the competitive effects of 
mergers and acquisitions of defense contractors during the 
ten-year period preceding the date of the enactment of this 
Act that includes— 
(1) the effectiveness of any remedy relating to 
a merger or acquisition of defense contractors on de-
fense industry competition and defense industrial 
base sustainability; 
(2) the effectiveness of information sharing be-
tween the Attorney General, the Federal Trade 
Commission, and the Secretary of Defense in the 
merger and acquisition review process; 
(3) an analysis of the processes used by the 
Secretary of Defense for measuring the effect of 
vertical integration of defense contractors on com-
petition, including data collection and the ability to 
access information from defense contractors that are 
parties to the merger or acquisition to assess anti-
competitive practices among defense contractors; 
and 
(4) implementation of previous recommenda-
tions of the Comptroller General, the Secretary of 
Defense, or the Defense Science Board to enhance 
competition among defense contractors.
857 
SEC. 895. REPORT ON LIMITATIONS RELATING TO THE PRO-
DUCTION OF CLOTHING AND TEXTILES FOR 
PROCUREMENT BY THE DEPARTMENT OF DE-
FENSE. 
Not later than June 30, 2026, the Secretary of De-
fense shall submit to the congressional defense committees 
a report— 
(1) addressing stockpiling constraints, bottle-
necks, and other limitations relating to the produc-
tion of clothing and textiles for procurement by the 
Department of Defense; and 
(2) containing an assessment of the creation of 
an ‘‘Emergency Textiles Stockpile Fund’’ to support 
the expansion of production of clothing and textiles 
to meet the requirements for contingency operations. 
SEC. 896. REPORT BY SECRETARY OF DEFENSE ON FOR-
EIGN 
ACQUISITION 
OF 
DUAL-USE 
TECH-
NOLOGIES. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of De-
fense, in coordination with the Secretary of Commerce, 
shall submit to Congress a report that— 
(1) identifies the types and estimated number 
of dual-use technologies developed or manufactured 
in the United States that have been acquired by en-
tities linked to the Chinese Communist Party during
858 
the 5-year period preceding the submission of the re-
port; 
(2) describes the primary methods by which 
such technologies were acquired by such entities; 
and 
(3) provides recommendations to strengthen 
protections against foreign acquisition of dual-use 
technologies developed or manufactured in the 
United States. 
(b) DUAL-USE DEFINED.—In this section, the term 
‘‘dual-use’’ has the meaning given such term in section 
4801 of title 10, United States Code. 
SEC. 897. INSPECTOR GENERAL OF THE DEPARTMENT OF 
DEFENSE ANNUAL REPORT ON OVERSIGHT 
OF FRAUD, WASTE, AND ABUSE. 
(a) REPORT REQUIRED.—The Inspector General of 
the Department of Defense shall submit to Congress and 
the Comptroller General of the United States a detailed 
annual report containing— 
(1) the total amount and dollar value of over-
sight investigations into fraud waste and abuse con-
ducted by the Department of Defense Office of In-
spector General, and the total amount and dollar 
value of oversight investigations into fraud, waste,
859 
and abuse conducted by the Offices of Inspector 
General of each of the military departments; 
(2) statistical tables showing— 
(A) the total number and dollar value of 
oversight investigations completed and pending, 
set forth separately by type of oversight inves-
tigation; 
(B) the priority given to each type of over-
sight investigation; 
(C) the length of time taken for each type 
of oversight investigation, both from the date of 
receipt of a qualified incurred cost submission 
and from the date the oversight investigation 
begins; 
(D) the aggregate cost of performing over-
sight investigations, set forth separately by type 
of oversight investigation; and 
(E) the total number and dollar value of 
oversight investigations that are pending for a 
period longer than one year as of the end of the 
fiscal year covered by the report, and the fiscal 
year in which the qualified submission was re-
ceived, set forth separately by type of oversight 
investigation;
860 
(3) a summary of any recommendations of ac-
tions or resources needed to improve the oversight 
investigation process; and 
(4) any other matters the Inspector General 
considers appropriate. 
(b) PUBLIC AVAILABILITY.—Each report submitted 
under subsection (a) shall be made publicly available. 
(c) SUNSET.—This section shall cease to have any 
force or effect after the end of the 4-year period beginning 
on the date of enactment of this Act. 
SEC. 898. REPORT ON SUPPLY OF RARE EARTH MATERIALS 
AND ELEMENTS. 
Not later than one year after the date of enactment 
of this Act, the Secretary of Defense, in coordination with 
the Secretary of the Interior, shall submit to Congress a 
report on the supply of rare earth materials and elements 
extracted, processed, and refined from secure sources of 
supply to develop and produce advanced technologies of 
the Department of Defense. 
SEC. 898A. REQUIREMENTS MANAGEMENT TOOLS IN DE-
PARTMENT OF DEFENSE ACQUISITION PRO-
GRAMS. 
(a) CONTRACTING POLICY GUIDANCE.—Not later 
than 180 days after the date of the enactment of this sec-
tion, the Under Secretary of Defense for Acquisition and
861 
Sustainment shall, with respect to solicitations, contracts, 
and task orders for systems and software engineering pro-
grams— 
(1) require— 
(A) the use of open, modular, and offeror- 
agnostic requirements management tools; and 
(B) that such tools be compatible with— 
(i) modern data interchange standards 
(including the Requirements Interchange 
Format)); and 
(ii) publicly available application pro-
gramming interfaces to facilitate integra-
tion with contemporary software develop-
ment environments and tools; 
(2) require that all contractor-developed user 
requirements data (including traceability, version 
history, acceptance criteria, and verification links) 
are delivered in non-proprietary, human-readable, 
and machine-readable formats that are fully portable 
across platforms; 
(3) require all program executive officers, pro-
gram managers, and contracting officers to— 
(A) ensure that contract requirements are 
not tied to specific offerors in order to enable
862 
full and open competition across software 
toolsets and platforms; 
(B) evaluate the interoperability, data 
portability, and openness of proposed require-
ments management solutions during source se-
lection and technical reviews; and 
(C) give priority to tools and platforms 
that demonstrate alignment with modern soft-
ware 
engineering 
principles, 
including 
traceability, automation, real-time collaboration, 
and extensibility through application program-
ming interfaces and plug-in architectures; 
(4) prohibit reliance on proprietary or closed- 
source tools that limit interoperability or constrain 
access, reuse, or long-term data ownership; and 
(5) encourage the use of cloud-native, collabo-
rative, and scalable software solutions for managing 
user requirements that align with best practices for 
agile and development, security, and operation devel-
opment environments. 
(b) REPORT TO CONGRESS.—Not later than 270 days 
after the date of enactment of this section, the Secretary 
of Defense shall submit to the congressional defense com-
mittees a report describing—
863 
(1) the actions taken by each Secretary of a 
military department and Defense Agency to imple-
ment subsection (a); and 
(2) any challenges with respect to such imple-
mentation and strategies for resolving such chal-
lenges. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘program executive officer’’ 
means an individual described in section 1732(a) of 
title 10, United States Code. 
(2) The term ‘‘requirements management tool’’ 
means a software capability used to capture, trace, 
analyze, and manage user, system, and software re-
quirements across the acquisition lifecycle. 
SEC. 898B. REPORT ON DEFENSE DEPARTMENT’S LITHIUM 
SUPPLY CHAIN AND APPLICATIONS FOR FU-
TURE ADVANCED MILITARY CAPABILITIES. 
(a) REPORT REQUIRED.—Not later than March 1, 
2026, the Under Secretary of Defense for Acquisition and 
Sustainment shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Serv-
ices of the House of Representatives a report on the De-
partment of Defense’s current supply and anticipated need 
for lithium.
864 
(b) ELEMENTS.—The report required by subsection 
(a) shall include the following: 
(1) An assessment of crucial military elec-
tronics, communication devices, infrastructure, vehi-
cles, and conventional and nuclear weapons infra-
structure that utilize lithium compounds, including 
lithium carbonate, lithium hydroxide, and lithium 
metals. 
(2) An assessment of the Department’s antici-
pated demand for lithium compounds and lithium- 
based materials for future advanced weapons sys-
tems, including unmanned surface, aerial, and un-
derwater vessels requiring modular battery systems, 
and for energy storage solutions to enhance power 
grid resilience and advance artificial intelligence 
data center systems. 
(3) An assessment of potential lithium supply- 
chain risks that pose a threat to military readiness 
and the feasibility of leveraging and partnering with 
commercial industry to strengthen the supply of lith-
ium and address identified vulnerabilities. 
(4) A description of the Department’s current 
and anticipated use of procurement authorities for 
obtaining domestically processed critical minerals, 
including lithium.
865 
SEC. 898C. CYBERSECURITY REGULATORY PLAN. 
(a) IN GENERAL.—Not later than June 1, 2026, the 
Chief Information Officer of the Department of Defense, 
in coordination with the Chief Information Officer of each 
military department, shall submit to the congressional de-
fense committees a plan to reduce the cybersecurity regu-
latory burden on the Defense Industrial Base. 
(b) REQUIREMENTS.—The plan required by sub-
section (a) shall include— 
(1) a process for assessing future proposed cy-
bersecurity contractual requirements for duplication; 
(2) a process for coordinating and centralizing 
approved cybersecurity requirements; and 
(3) a coordination mechanism with industry to 
characterize the industry position on any new cyber-
security contractual requirements, to include a cost- 
estimate, a cost-benefit analysis, and an assessment 
as to whether the control is considered duplicative to 
existing security controls. 
SEC. 898D. REPORT ON WAIVERS OF SECURITY REQUIRE-
MENTS 
FOR 
CERTAIN 
SOFTWARE 
CON-
TRACTS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on con-
tracts awarded to offerors of software applications and
866 
software services for which a waiver of security require-
ments relating to such applications and services has been 
granted. Such report shall include the following: 
(1) The name of the software application or 
service. 
(2) The number and type of waivers that were 
granted to statutes, regulations, and policies. 
(3) A comprehensive justification for granting 
the waiver instead of awarding the contract to a 
compliant offeror. 
Subtitle I—Robot Security 
SEC. 899. DEFINITIONS. 
In this subtitle: 
(1) COVERED FOREIGN COUNTRY.—The term 
‘‘covered foreign country’’ means any of the fol-
lowing: 
(A) The People’s Republic of China. 
(B) The Russian Federation. 
(C) The Islamic Republic of Iran. 
(D) The Democratic People’s Republic of 
Korea. 
(2) COVERED
FOREIGN
ENTITY.—The term 
‘‘covered foreign entity’’ means an entity that is 
domiciled in a covered foreign country, or subject to 
influence or control by the government of a covered
867 
foreign country as determined by the Secretary of 
Homeland Security or the Secretary of Defense, and 
any subsidiary or affiliate of such an entity. 
(3) COVERED
UNMANNED
GROUND
VEHICLE 
SYSTEM.—The term ‘‘covered unmanned ground ve-
hicle system’’— 
(A) means a mechanical device that— 
(i) is capable of locomotion, naviga-
tion, or movement on the ground; and 
(ii) operates at a distance from one or 
more operators or supervisors based on 
commands or in response to sensor data, 
or through any combination thereof; and 
(B) includes— 
(i) remote surveillance vehicles, auton-
omous patrol technologies, mobile robotics, 
and humanoid robots; and 
(ii) the vehicle, its payload, and any 
external device used to control the vehicle. 
SEC. 899A. PROHIBITION ON PROCUREMENT OF COVERED 
UNMANNED 
GROUND 
VEHICLE 
SYSTEMS 
FROM COVERED FOREIGN ENTITIES. 
(a) IN GENERAL.—Except as provided under sub-
section (b), the head of an executive agency may not pro-
868 
cure any covered unmanned ground vehicle system that 
is manufactured or assembled by a covered foreign entity. 
(b) EXEMPTION.—The Secretary of Homeland Secu-
rity, the Secretary of Defense, the Secretary of State, and 
the Attorney General are exempt from the restriction 
under subsection (a) if the procurement is required in the 
national interest of the United States and— 
(1) is for the sole purposes of research, evalua-
tion, training, testing, or analysis for electronic war-
fare, information warfare operations, cybersecurity, 
or development of unmanned ground vehicle system 
or counter-unmanned ground vehicle system tech-
nology; 
(2) is for the sole purposes of conducting 
counterterrorism or counterintelligence activities, 
protective missions, or Federal criminal or national 
security investigations, including forensic examina-
tions, or for electronic warfare, information warfare 
operations, cybersecurity, or development of an un-
manned ground vehicle system or counter-unmanned 
ground vehicle technology; or 
(3) is an unmanned ground vehicle system that, 
as procured or as modified after procurement but 
before operational use, can no longer transfer to, or 
download data from, a covered foreign entity and
869 
otherwise poses no national security cybersecurity 
risks as determined by the exempting official. 
SEC. 899B. PROHIBITION ON OPERATION OF COVERED UN-
MANNED GROUND VEHICLE SYSTEMS FROM 
COVERED FOREIGN ENTITIES. 
(a) PROHIBITION.— 
(1) IN GENERAL.—Beginning on the date that 
is one year after the date of the enactment of this 
Act, no Federal department or agency may operate 
a covered unmanned ground vehicle system manufac-
tured or assembled by a covered foreign entity. 
(2) APPLICABILITY
TO
CONTRACTED
SERV-
ICES.—The prohibition under paragraph (1) applies 
to any covered unmanned ground vehicle systems 
that are being used by any executive agency through 
the method of contracting for the services of covered 
unmanned ground vehicle systems. 
(b) EXEMPTION.—The Secretary of Homeland Secu-
rity, the Secretary of Defense, the Secretary of State, and 
the Attorney General are exempt from the restriction 
under subsection (a) if the operation is required in the 
national interest of the United States and— 
(1) is for the sole purposes of research, evalua-
tion, training, testing, or analysis for electronic war-
fare, information warfare operations, cybersecurity,
870 
or development of unmanned ground vehicle system 
or counter-unmanned ground vehicle system tech-
nology; 
(2) is for the sole purposes of conducting 
counterterrorism or counterintelligence activities, 
protective missions, or Federal criminal or national 
security investigations, including forensic examina-
tions, or for electronic warfare, information warfare 
operations, cybersecurity, or development of an un-
manned ground vehicle system or counter-unmanned 
ground vehicle system technology; or 
(3) is an unmanned ground vehicle system that, 
as procured or as modified after procurement but 
before operational use, can no longer transfer to, or 
download data from, a covered foreign entity and 
otherwise poses no national security cybersecurity 
risks as determined by the exempting official. 
SEC. 899C. PROHIBITION ON USE OF FEDERAL FUNDS FOR 
PROCUREMENT AND OPERATION OF COV-
ERED UNMANNED GROUND VEHICLE SYS-
TEMS MANUFACTURED BY CERTAIN FOREIGN 
ENTITIES. 
(a) IN GENERAL.—Beginning on the date that is one 
year after the date of the enactment of this Act, except 
as provided in subsection (b), no Federal funds awarded
871 
through a contract, grant, or cooperative agreement, or 
otherwise made available may be used— 
(1) to procure a covered unmanned ground ve-
hicle system that is manufactured or assembled by 
a covered foreign entity; or 
(2) in connection with the operation of such a 
robot or unmanned ground vehicle system. 
(b) EXEMPTION.—The Secretary of Homeland Secu-
rity, the Secretary of Defense, the Secretary of State, and 
the Attorney General are exempt from the restriction 
under subsection (a) if the procurement or operation is 
required in the national interest of the United States 
and— 
(1) is for the sole purposes of research, evalua-
tion, training, testing, or analysis for electronic war-
fare, information warfare operations, cybersecurity, 
or development of unmanned ground vehicle system 
or counter-unmanned ground vehicle system tech-
nology; 
(2) is for the sole purposes of conducting 
counterterrorism or counterintelligence activities, 
protective missions, or Federal criminal or national 
security investigations, including forensic examina-
tions, or for electronic warfare, information warfare 
operations, cybersecurity, or development of an un-
872 
manned ground vehicle system or counter-unmanned 
ground vehicle system technology; or 
(3) is an unmanned ground vehicle system that, 
as procured or as modified after procurement but 
before operational use, can no longer transfer to, or 
download data from, a covered foreign entity and 
otherwise poses no national security cybersecurity 
risks as determined by the exempting official. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. PROHIBITION OF DIVERSITY, EQUITY, AND INCLU-
SION PROGRAMS OF THE DEPARTMENT OF 
DEFENSE. 
(a) REPEAL OF REPORTING REQUIREMENTS ON DI-
VERSITY AND INCLUSION.—Section 113 of title 10, United 
States Code, is amended— 
(1) in subsection (c)— 
(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively; 
(2) in subsection (g)(1)(B)— 
(A) by striking clause (vii); and
873 
(B) by redesignating clauses (viii), (ix), 
and (x) as clauses (vii), (viii), and (ix), respec-
tively; and 
(3) by striking subsections (l) and (m) and by 
redesignating subsections (n) and (o) as subsections 
(l) and (m), respectively. 
(b) REPEAL OF CHIEF DIVERSITY OFFICER.—Sec-
tion 147 of title 10, United States Code, is repealed. 
(c) REPEAL OF PROGRAM ON DIVERSITY IN MILI-
TARY LEADERSHIP.—Section 656 of title 10, United 
States Code, is repealed. 
(d) PROHIBITED DIVERSITY, EQUITY, AND INCLU-
SION PRACTICES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary of Defense may not— 
(A) maintain an office relating to diversity, 
equity, inclusion, or accessibility or any sub-
stantially similar office; 
(B) maintain or employ a chief diversity 
officer or a substantially similar officer; 
(C) develop, implement, distribute, or pub-
lish— 
(i) plans, strategic plans, reports, or 
surveys relating to diversity, equity, inclu-
sion, and accessibility;
874 
(ii) action plans, reports, or surveys 
relating to equity or substantially similar 
plans, reports, or surveys; 
(D) develop, implement, or maintain an 
employee resource group or an affinity group 
based on race, color, ethnicity, religion, national 
origin, sexual orientation, or gender identity; 
(E) develop, implement, or maintain an 
agency equity team or a substantially similar 
team; 
(F) develop, implement, distribute, publish, 
establish, or purchase— 
(i) a training course relating to— 
(I) diversity; 
(II) equity; 
(III) inclusion; 
(IV) a critical theory relating to 
race, gender, or otherwise; or 
(V) intersectionality; or 
(ii) a training course substantiality 
similar to a training course described in 
clause (i); 
(G) develop, implement, or maintain a di-
versity, equity, inclusion, and accessibility data
875 
dashboard or a substantially similar data dash-
board; or 
(H) maintain or employ a position relating 
to diversity, equity, inclusion, or accessibility. 
(2) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) shall be construed to prevent the Sec-
retary of Defense from maintaining or operating— 
(A) Equal Employment Opportunity offices 
as historically organized and operated within 
the Department of Defense; or 
(B) an office enforcing the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.) or similar programs or offices as histori-
cally organized and operated within the Depart-
ment of Defense. 
SEC. 902. MODIFICATION TO AUTHORITIES OF THE UNDER 
SECRETARY OF DEFENSE FOR RESEARCH 
AND ENGINEERING. 
Section 133a(b) of title 10, United States Code, is 
amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting a semicolon; and
876 
(3) by adding at the end the following new 
paragraphs: 
‘‘(4) having the authority to direct the Secre-
taries of the military departments and the heads of 
other elements of the Department with regard to 
matters for which the Under Secretary has responsi-
bility; and 
‘‘(5) conducting developmental prototyping, de-
signing and executing experiments of prototypes in 
the field to demonstrate operational relevance to ad-
dress joint force capability gaps, and encouraging 
and supporting the rapid transition of technology 
from the research and development phase into oper-
ational use within the Department.’’. 
SEC. 903. MODIFICATION TO AUTHORITIES OF THE DIREC-
TOR OF OPERATIONAL TEST AND EVALUA-
TION. 
Section 139 of title 10, United States Code, as 
amended by section 1801 of this Act, is further amend-
ed— 
(1) in subsection (b)— 
(A) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (7), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
877 
(C) by adding at the end the following new 
paragraph: 
‘‘(8) coordinate with operational test and eval-
uation organizations of the armed forces to review 
their service-approved test and evaluation master 
plans.’’; 
(2) in subsection (k), by inserting ‘‘, and shall 
not be subject to any limitation that does not allow 
for sufficient staffing to fulfill the duties and re-
sponsibilities assigned by this section’’ before the pe-
riod at the end; and 
(3) by adding at the end the following new sub-
section: 
‘‘(l)(1) The Director may enter into contracts with 
one or more federally funded research and development 
centers pursuant to which personnel of such centers may 
assist the Director with program oversight, including 
through— 
‘‘(A) test planning, preparation and moni-
toring; 
‘‘(B) data collection; 
‘‘(C) data analysis; 
‘‘(D) drafting and reviewing test reports; 
‘‘(E) providing technical expertise and sup-
port to program offices; and
878 
‘‘(F) performing such other duties as the 
Director determines appropriate. 
‘‘(2) The Secretary of Defense shall ensure that the 
Director has sufficient funding to enter into the contracts 
for which authorization is provided under paragraph (1).’’. 
SEC. 904. ADDITIONAL AUTHORITIES FOR THE OFFICE OF 
STRATEGIC CAPITAL. 
Section 149(e) of title 10, United States Code, is 
amended— 
(1) in paragraph (3)(A)(ii)(VI), by striking 
‘‘Secretary’’ and inserting ‘‘Director’’; 
(2) by amending clause (ii) of paragraph (5)(A) 
to read as follows: 
‘‘(ii) The Department of Defense 
Credit Program Account shall be credited 
with amounts appropriated pursuant to the 
authorization of appropriations and fees 
and payments received under paragraph 
(6).’’; 
(3) by redesignating paragraphs (6) through 
(9) as paragraphs (7) through (10), respectively; 
and 
(4) by inserting after paragraph (5) the fol-
lowing new paragraph:
879 
‘‘(6)(A) The Director may charge and collect 
fees and collect payments to reimburse costs in-
curred by the Office in connection with an applica-
tion for, or as a condition of an eligible entity receiv-
ing or restructuring, capital assistance under this 
subsection. The Director may set the fees at a level 
that the Director considers appropriate. Fees and 
payments received under this paragraph shall be 
credited to the Department of Defense Credit Pro-
gram Account to remain available until expended for 
costs and expenditures as provided under clauses (ii) 
through (iv) of paragraph (5)(B). 
‘‘(B)(i) Except as provided in clause (ii), no 
fees or payments may be received pursuant to the 
authority provided under subparagraph (A) as of the 
date specified in paragraph (11). 
‘‘(ii) With respect to loan and loan guarantees 
for which an obligation was incurred prior to the ex-
piration date in paragraph (11), the Director may 
continue to charge and collect fees and cost reim-
bursements in connection with such loan and loan 
guarantee assets until fully collected.’’.
880 
SEC. 905. FURTHER MODIFICATIONS TO CAPITAL ASSIST-
ANCE PROGRAM OF THE OFFICE OF STRA-
TEGIC CAPITAL. 
Section 149 of title 10, United States Code, as 
amended by section 904, is further amended— 
(1) in subsection (d), by inserting ‘‘or equity in-
vestment’’ after ‘‘direct loan’’; 
(2) in subsection (e)— 
(A) in paragraph (3)— 
(i) in subparagraph (A)(ii)(I), by 
amending item (bb) to read as follows: 
‘‘(bb) The Director may waive the re-
quirement under item (aa) with respect to 
an investment if— 
‘‘(AA) the investment is deter-
mined by the Secretary of Defense, 
acting through the Director, to be 
vital to the national security of the 
United States; or 
‘‘(BB) in the case of a convert-
ible debt instrument, the Director be-
lieves the total return on investment 
of such convertible debt instrument 
will exceed the total return on invest-
ment of a loan with an interest rate 
at the yield on marketable securities
881 
of a similar maturity to the maturity 
of the loan on the date of execution of 
the loan agreement.’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(D)(i) The Director may, as a minority inves-
tor, support an eligible investment selected pursuant 
to subsection (d) with funds or use other mecha-
nisms for the purpose of purchasing, and may make 
and fund commitments to purchase, invest in, make 
pledges in respect of, or otherwise acquire, financial 
interests (including equity and quasi-equity securi-
ties (such as warrants)) of the eligible entity receiv-
ing support for the eligible investment, including as 
a limited partner or other investor in investment 
funds, upon such terms and conditions as the Sec-
retary may determine. 
‘‘(ii) The Director may seek to sell and liq-
uidate any support for an eligible investment pro-
vided under subparagraph (A)(i) commensurate with 
other similar investors in the eligible investment and 
taking into consideration the national security inter-
ests of the United States.’’;
883 
vestments made under this subsection that are 
outstanding as of such date shall continue to be 
subject to the terms, conditions, and other re-
quirements of this subsection.’’. 
(3) in subsection (f), by amending paragraph 
(1) to read as follows: 
‘‘(1) The term ‘capital assistance’ means a loan, 
loan guarantee, convertible debt instrument, equity 
security, quasi-equity security (such as a warrant), 
or technical assistance.’’. 
Subtitle B—Other Department of 
Defense Organization and Man-
agement Matters 
SEC. 911. MEMBERSHIP OF COMMANDANT OF THE COAST 
GUARD ON THE JOINT CHIEFS OF STAFF. 
(a) MEMBERSHIP
ON
THE
JOINT
CHIEFS
OF 
STAFF.—Section 151(a) of title 10, United States Code, 
is amended by adding at the end the following new para-
graph: 
‘‘(9) The Commandant of the Coast Guard.’’. 
(b) APPOINTMENT
OF
CHAIRMAN; GRADE
AND 
RANK.—Section 152 of such title is amended— 
(1) in subsection (b)(1)(B) by striking ‘‘or the 
Chief of Space Operations’’ and inserting ‘‘the Chief
884 
of Space Operations, or the Commandant of the 
Coast Guard’’; and 
(2) in subsection (c), by striking ‘‘Navy’’ and 
inserting ‘‘Navy or Coast Guard’’. 
(c) VICE CHAIRMAN.—Section 154(f) of such title is 
amended by striking ‘‘Navy’’ and inserting ‘‘Navy or 
Coast Guard’’. 
(d) INCLUSION
ON
THE JOINT STAFF.—Section 
155(a) of such title is amended— 
(1) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘(other than the Coast 
Guard)’’; 
(B) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(C) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
subparagraph: 
‘‘(D) the Coast Guard.’’; and 
(2) in paragraph (3), by striking ‘‘Secretary of 
the military department having jurisdiction over that 
armed force’’ and inserting ‘‘Secretary concerned’’. 
(e) DUTIES AS MEMBER OF JOINT STAFF.—Section 
302 of title 14, United States Code, is amended—
885 
(1) by striking ‘‘The President may’’ and in-
serting the following: 
‘‘(a) The President may’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b)(1) The Commandant of the Coast Guard shall 
also perform the duties prescribed for the Commandant 
as a member of the Joint Chiefs of Staff under section 
151 of title 10. 
‘‘(2) To the extent that such action does not impair 
the independence of the Commandant in the performance 
of the Commandant’s duties as a member of the Joint 
Chiefs of Staff, the Commandant shall inform the Sec-
retary of the department in which the Coast Guard is op-
erating regarding military advice rendered by members of 
the Joint Chiefs of Staff on matters affecting such depart-
ment. 
‘‘(3) Subject to the authority, direction, and control 
of the Secretary of Defense, the Commandant shall keep 
the Secretary of the department in which the Coast Guard 
is operating fully informed of significant military oper-
ations affecting the duties and responsibilities of such Sec-
retary.’’.
886 
SEC. 912. JOINT COUNTER-SMALL UNMANNED AIRCRAFT 
SYSTEMS OFFICE. 
(a) IN GENERAL.—Subchapter I of chapter 8 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 199. Joint Counter-Small Unmanned Aircraft Sys-
tems Office 
‘‘(a) ESTABLISHMENT.—There is established in the 
Department of Defense a joint activity to be known as 
the ‘Joint Counter-Small Unmanned Aircraft Systems Of-
fice’ (referred to in this section as the ‘Office’). 
‘‘(b) DIRECTOR.— 
‘‘(1) There is a Director of the Office (referred 
to in this section as the ‘Director’) who shall be ap-
pointed by the Secretary of Defense from among 
personnel of the Department of Defense who are— 
‘‘(A) general or flag officers of the covered 
armed forces; or 
‘‘(B) members of the Senior Executive 
Service. 
‘‘(2) The Director shall report directly to Dep-
uty Secretary of Defense and shall serve as the prin-
cipal advisor to the Deputy Secretary and the Chair-
man of the Joint Chiefs of Staff on counter-small 
unmanned aircraft system matters. 
‘‘(c) ORGANIZATION.—The Office shall—
887 
‘‘(1) be designated as a jointly manned activity; 
and 
‘‘(2) shall consist of such other subordinate or-
ganizational elements as the Director determines ap-
propriate, subject to the authority, direction, and 
control of the Secretary of Defense. 
‘‘(d) RESPONSIBILITIES.—The Office shall do the fol-
lowing: 
‘‘(1) Lead, advocate, coordinate, and focus all 
Department of Defense actions in support of efforts 
of the combatant commands and the covered armed 
forces to defeat small unmanned aircraft systems 
(referred to in this section as ‘sUAS’) as weapons of 
strategic influence. 
‘‘(2) Integrate all counter-sUAS solutions 
throughout the Department of Defense, seeking 
interagency assistance as necessary. 
‘‘(3) Identify innovative near-term (executable 
within a 5 year timeframe) counter-sUAS solutions. 
‘‘(4) Coordinate with other components of the 
Department of Defense to carry out ongoing mid- 
term (covering a 5-10 year timeframe) research and 
development initiatives and long-term (covering a 
timeframe exceeding 10 years) science and tech-
888 
nology efforts that could help address the counter- 
sUAS threat. 
‘‘(5) Coordinate efforts of the Department of 
Defense to identify, assess, and disrupt adversarial 
unmanned aircraft system supply chains and finan-
cial threat networks that support such supply 
chains. 
‘‘(6) Coordinate with the United States North-
ern Command, or any successor entity serving as the 
lead synchronizer for homeland counter small un-
manned aircraft systems, to develop and deploy 
counter-sUAS capabilities for homeland defense. 
‘‘(7) Develop and share counter-sUAS training 
tools, expertise, and tactics, techniques, and proce-
dures for components of the Department of Defense 
that address needs of the joint force, deploying 
forces, installation defense within and outside the 
United States, and other relevant scenarios. 
‘‘(8) Coordinate efforts across the Department 
of Defense to develop, test, evaluate, and procure 
counter-sUAS kinetic and non-kinetic defeat capa-
bilities, including— 
‘‘(A) systems to sense, identify, track, and 
defeat small unmanned aircraft systems, both 
kinetically and non-kinetically;
889 
‘‘(B) command and control systems; and 
‘‘(C) such other capabilities the Director 
determines appropriate. 
‘‘(9) Carry out the counter-sUAS validation and 
acquisition responsibilities described in subsections 
(e) and (f). 
‘‘(10) Develop and regularly update a counter- 
sUAS strategic plan in accordance with subsection 
(g). 
‘‘(11) Carry out such other activities relating to 
counter-sUAS as the Secretary of Defense deter-
mines appropriate. 
‘‘(e) APPROVAL
AND VALIDATION
OF COUNTER- 
SUAS SYSTEMS.— 
‘‘(1) The Office shall serve as the entity within 
the Department of Defense with primary responsi-
bility for the validation and approval of counter- 
sUAS systems for procurement and use by the De-
partment. 
‘‘(2) In coordination with other components of 
the Department of Defense, the Director shall de-
velop, maintain, and regularly update a list of 
counter-sUAS systems that are validated and ap-
proved for procurement and use by the Department 
as described in paragraph (1). The Director shall
890 
ensure that each counter-sUAS system on the list 
has been vetted by the Office and has proven to be 
effective for use by the Department in countering 
sUAS. 
‘‘(3) Except as provided in paragraph (4), no 
component of the Department of Defense may pro-
cure a counter-sUAS system unless such system— 
‘‘(A) has been validated and approved by 
the Office under paragraph (1); and 
‘‘(B) is included on the list maintained 
under paragraph (2). 
‘‘(4) The service acquisition executive of the 
military department concerned (in the case of a pro-
curement by a military department) or the Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment (in the case of a procurement not 
under the authority of a service acquisition execu-
tive) may waive the restriction under paragraph (3), 
on a case-by-case basis, by submitting to the con-
gressional defense committees— 
‘‘(A) notice of the intent to issue such a 
waiver; and 
‘‘(B) an explanation of the reasons for 
issuing the waiver.
891 
‘‘(f) ACQUISITION OVERSIGHT DIVISION.—The Di-
rector shall establish and maintain an acquisition over-
sight division within the Office. The acquisition oversight 
division shall— 
‘‘(1) include acquisition professionals from rel-
evant Program Executive Offices within each cov-
ered armed force; 
‘‘(2) support and facilitate efforts of the cov-
ered armed forces— 
‘‘(A) to budget and plan for the integration 
and sustainment of counter-sUAS capabilities 
that are approved and validated by the Office 
under subsection (e); and 
‘‘(B) to efficiently and effectively transition 
such capabilities into operational use; and 
‘‘(3) have such other duties and responsibilities 
as the Director determines appropriate. 
‘‘(g) COUNTER-SUAS STRATEGIC PLAN.— 
‘‘(1) The Director shall coordinate with relevant 
components of the Department of Defense, to de-
velop, publish, and regularly update a strategic plan 
for the counter-sUAS activities of the Department, 
which shall include—
892 
‘‘(A) measures to coordinate the various 
counter-sUAS efforts of the Department to en-
sure cohesion among such efforts; 
‘‘(B) guidance for counter-sUAS related 
investment and manpower decisions across the 
Department, including necessary science and 
technology investments; and 
‘‘(C) performance measures, goals, and 
lines of effort required to achieve the strategic 
objectives of the plan. 
‘‘(2) Not later than 120 days after the date on 
which the Office commences operations, the Director 
shall complete and submit to the congressional de-
fense committees the initial strategic plan developed 
under paragraph (1). 
‘‘(3) Not less frequently than once every two 
years after completion of the initial strategic plan 
under paragraph (2), the Director shall— 
‘‘(A) update the plan; and 
‘‘(B) submit the updated plan to the con-
gressional defense committees. 
‘‘(4) Following completion of each version of 
the strategic plan under this subsection, each com-
mander of a geographic combatant command shall 
develop an implementation plan to guide the combat-
893 
ant command overseen by that commander in 
achieving the vision, mission, goals, and performance 
measures of the strategic plan. 
‘‘(h) ANNUAL REPORTS.—On an annual basis, the 
Director shall submit to the congressional defense commit-
tees a report that includes— 
‘‘(1) a summary of the activities of the Office 
over the period covered by the report, including a de-
scription of— 
‘‘(A) the progress of the Office in carrying 
out the requirements of this section; and 
‘‘(B) the metrics used to measure such 
progress; and 
‘‘(2) a summary of the expenditures made by 
the Office in the period covered by the report for 
counter-sUAS related research, development, test, 
and evaluation, procurement, and sustainment ac-
tivities. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) The term ‘counter-sUAS system’ means a 
system or device capable of lawfully and safely dis-
abling, disrupting, or seizing control of a small un-
manned aircraft or small unmanned aircraft system.
894 
‘‘(2) The term ‘covered armed forces’ means the 
Army, Navy, Air Force, Marine Corps, and Space 
Force. 
‘‘(3) The terms ‘small unmanned aircraft’, ‘un-
manned aircraft’, and ‘unmanned aircraft system’ 
have the meanings given those terms in section 
44801 of title 49.’’. 
(b) STRATEGY AND FUNDING PLAN.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report that includes— 
(1) a strategy to ensure the Joint Counter-Un-
manned Aircraft Systems Office has the funding and 
other resources necessary to execute its responsibil-
ities, as required under section 199 of title 10, 
United States Code (as added by subsection (a)); 
and 
(2) a plan for funding the Office across the pe-
riod covered by the most recent future-years defense 
program submitted to Congress under section 221 of 
title 10, United States Code (as of the date of the 
report).
895 
SEC. 913. AUTHORITY TO ESTABLISH REGIONAL OUTREACH 
CENTERS FOR THE DEFENSE INNOVATION 
UNIT. 
Section 4127 of title 10, United States Code, is 
amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) REGIONAL OUTREACH CENTERS.— 
‘‘(1) IN GENERAL.—The Director may establish 
and maintain regional offices of the Unit at loca-
tions within and outside the United States for pur-
poses of conducting outreach to and streamlining 
interactions between the Unit and the private sector, 
academia, and other mission partners. 
‘‘(2) SELECTION CRITERIA AND OTHER GUID-
ANCE.—In the event the Director exercises the au-
thority to establish and maintain regional offices 
under paragraph (1), the Director shall— 
‘‘(A) develop a strategy and criteria for the 
selection of locations for such offices; 
‘‘(B) issue any rules, regulations, policies, 
or guidance necessary for the operation of such 
offices; and
896 
‘‘(C) make the information described in 
subparagraphs (A) and (B) available on a pub-
licly accessible website of the Department of 
Defense.’’. 
SEC. 914. OVERSIGHT OF THE UNITED STATES AFRICA 
COMMAND. 
(a) LIMITATION.—None of the funds authorized to 
be appropriated by this Act or otherwise made available 
for fiscal year 2026 for the Department of Defense may 
be obligated or expended to carry out an action described 
in subsection (b) until a period of 90 days has elapsed 
following the date on which the Secretary of Defense sub-
mits the certification and all other information required 
under subsection (c) with respect to such action. 
(b) ACTIONS DESCRIBED.—The actions described in 
this subsection are the following: 
(1) Modifying or combining the responsibilities 
of the Commander of the United States Africa Com-
mand, as set forth in chapter 6 of title 10, United 
States Code, with those of any other commander 
designated under such authority. 
(2) Appointing an officer in a grade below O- 
10 to serve as the Commander of the United States 
Africa Command.
897 
(3) Reducing the total number of personnel as-
signed to the United States Africa Command by a 
number that is greater than 15 percent of such total 
number so assigned as of June 1, 2025. 
(4) Divesting, consolidating, or otherwise re-
turning to a host country any sites included in the 
real property inventory of the United States Africa 
Command as of June 1, 2025. 
(c) CERTIFICATION AND OTHER INFORMATION RE-
QUIRED.—The Secretary of Defense shall submit to the 
congressional defense committees each of the following 
with respect to any action described in subsection (b) that 
is proposed to be taken by the Secretary: 
(1) A certification that, in the determination of 
the Secretary, the action is in the national security 
interest of the United States and will be undertaken 
only after appropriate consultations with African, 
European, and other international partners on 
shared security objectives in Africa and its sur-
rounding waters. 
(2) An analysis of the impact of such action 
on— 
(A) the security of the United States; 
(B) the threat of transnational terrorism 
in or emanating from Africa, especially groups
898 
with the capability or intent to attack the 
United States homeland or United States citi-
zens, interests, or allies or partners; 
(C) the opportunities available to the Peo-
ple’s Republic of China to pursue their strategic 
objectives on the African continent and sur-
rounding areas, including their pursuit of addi-
tional military ports and bases to threaten the 
Atlantic Ocean and impact homeland defense; 
(D) the military activities of the Russian 
Federation and Russian-sponsored private mili-
tary companies on the African continent and in 
surrounding areas; 
(E) the ability of the Armed Forces to exe-
cute supporting operations for campaign plans 
against adversaries deemed a priority in the 
National Defense Strategy; 
(F) the ability of the Armed Forces to exe-
cute contingency and other operational plans of 
the Department of Defense, including in sup-
port of operations and crisis response and other 
operations; 
(G) the ability of the United States to 
maintain access in Africa and its surrounding
899 
waters, including to protect the freedom of 
navigation; 
(H) military training and major military 
exercises, including on interoperability, security 
cooperation, and joint activities with African al-
lies and partners; 
(I) United States deterrence of potential 
threats from the People’s Republic of China; 
and 
(J) United States deterrence and defense 
posture in the African theater and the home-
land. 
(3) A detailed analysis of the costs for reloca-
tion of personnel, equipment, and associated infra-
structure. 
(4) A description of consultations regarding 
such action with each relevant ally or partner includ-
ing those on the African continent, in the Middle 
East, and in Europe. 
(5) Independent risk assessments prepared by 
the Commander of the United States Africa Com-
mand, the Chairman of the Joint Chiefs of Staff, 
and any other combatant commander that may be 
affected by such action, of—
900 
(A) the impact of such action on the secu-
rity of the United States and the ability of the 
Armed Forces to defend the homeland forward; 
(B) the impact of such action on the abil-
ity of the Armed Forces to execute campaign 
and contingency plans of the Department of 
Defense, including in support of operations out-
side the area of responsibility of the United 
States Africa Command; and 
(C) the impact of such action on military 
training and major military exercises, including 
on interoperability and joint activities with re-
gional allies and partners. 
(d) CONSULTATION.—In preparing the certification 
and other information required under subsection (c), the 
Secretary of Defense shall consult with the Commander 
of the United States Africa Command and the commander 
of any other geographic combatant command expected to 
be affected by an action described in subsection (b). 
(e) FORM.— 
(1) CERTIFICATION.—The certification required 
by subsection (c)(1) shall be submitted in unclassi-
fied form.