H. R. 6523—103 
‘‘(2) In addition to transportation under paragraph (1), the 
Secretary concerned may provide a per diem allowance or 
reimbursement for the actual and necessary expenses of the travel, 
or a combination thereof, but not to exceed the rates established 
under section 404(d) of this title. 
‘‘(3) The transportation authorized by paragraph (1) may be 
provided by any of the following means: 
‘‘(A) Transportation in-kind. 
‘‘(B) A monetary allowance in place of transportation in- 
kind at a rate to be prescribed by the Secretaries concerned. 
‘‘(C) Reimbursement for the commercial cost of transpor-
tation. 
‘‘(4) An allowance payable under this subsection may be paid 
in advance. 
‘‘(5) Reimbursement payable under this subsection may not 
exceed the cost of Government-procured commercial round-trip air 
travel. 
‘‘(d) 
YELLOW
RIBBON
REINTEGRATION
PROGRAM
EVENT 
DEFINED.—In this section, the term ‘Yellow Ribbon Reintegration 
Program event’ means an event authorized under section 582 of 
the National Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110–181; 10 U.S.C. 10101 note).’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item related to section 411k the following new item: 
‘‘411l. Travel and transportation allowances: attendance of members and other per-
sons at Yellow Ribbon Reintegration Program events.’’. 
(b) APPLICABILITY.—No reimbursement may be provided under 
section 411l of title 37, United States Code, as added by subsection 
(a), for travel and transportation costs incurred before September 
30, 2010. 
Subtitle D—Disability, Retired Pay and 
Survivor Benefits 
SEC. 631. ELIMINATION OF CAP ON RETIRED PAY MULTIPLIER FOR 
MEMBERS WITH GREATER THAN 30 YEARS OF SERVICE 
WHO RETIRE FOR DISABILITY. 
(a) COMPUTATION
OF
RETIRED
PAY.—The table in section 
1401(a) of title 10, United States Code, is amended— 
(1) in the column designated ‘‘Column 2’’, by inserting 
‘‘, not to exceed 75%,’’ after ‘‘percentage of disability’’ both 
places it appears; and 
(2) by striking column 4. 
(b) RECOMPUTATION OF RETIRED OR RETAINER PAY TO REFLECT 
LATER ACTIVE DUTY OF MEMBERS WHO FIRST BECAME MEMBERS 
BEFORE SEPTEMBER 8, 1980.—The table in section 1402(d) of such 
title is amended— 
(1) in the column designated ‘‘Column 2’’, by inserting 
‘‘, not to exceed 75%,’’ after ‘‘percentage of disability’’; and 
(2) by striking column 4. 
(c) RECOMPUTATION OF RETIRED OR RETAINER PAY TO REFLECT 
LATER ACTIVE DUTY OF MEMBERS WHO FIRST BECAME MEMBERS 
AFTER SEPTEMBER 7, 1980.—The table in section 1402a(d) of such 
title is amended—
H. R. 6523—104 
(1) in the column designated ‘‘Column 2’’, by inserting 
‘‘, not to exceed 75 percent,’’ after ‘‘percentage of disability’’; 
and 
(2) by striking column 4. 
(d) APPLICATION
OF AMENDMENTS.—The tables in sections 
1401(a), 1402(d), and 1402a(d) of title 10, United States Code, 
as in effect on the day before the date of the enactment of this 
Act, shall continue to apply to the computation or recomputation 
of retired or retainer pay for persons who first became entitled 
to retired or retainer pay under subtitle A of such title on or 
before the date of the enactment of this Act. The amendments 
made by this section shall apply only with respect to persons 
who first become entitled to retired or retainer pay under such 
subtitle after that date. 
SEC. 632. PAYMENT DATE FOR RETIRED AND RETAINER PAY. 
(a) SETTING PAYMENT DATE.—Section 1412 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘Amounts’’ and inserting ‘‘(a) ROUNDING.— 
Amounts’’; and 
(2) by adding at the end the following new subsection: 
‘‘(b) PAYMENT DATE.—Amounts of retired pay and retainer pay 
due a retired member of the uniformed services shall be paid 
on the first day of each month beginning after the month in which 
the right to such pay accrues.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION
HEADING.—The heading of such section is 
amended to read as follows: 
‘‘§ 1412. Administrative provisions’’. 
(2) TABLE OF SECTIONS.—The table of sections at the begin-
ning of chapter 71 of such title is amended by striking the 
item relating to section 1412 and inserting the following new 
item: 
‘‘1412. Administrative provisions.’’. 
(c) EFFECTIVE DATE.—Subsection (b) of section 1412 of title 
10, United States Code, as added by subsection (a), shall apply 
beginning with the first month that begins more than 30 days 
after the date of the enactment of this Act. 
SEC. 633. CLARIFICATION OF EFFECT OF ORDERING RESERVE COMPO-
NENT MEMBER TO ACTIVE DUTY TO RECEIVE AUTHORIZED 
MEDICAL CARE ON REDUCING ELIGIBILITY AGE FOR 
RECEIPT OF NON-REGULAR SERVICE RETIRED PAY. 
Section 12731(f)(2)(B) of title 10, United States Code, is 
amended by adding at the end the following new clause: 
‘‘(iii) If a member described in subparagraph (A) is wounded 
or otherwise injured or becomes ill while serving on active duty 
pursuant to a call or order to active duty under a provision of 
law referred to in the first sentence of clause (i) or in clause 
(ii), and the member is then ordered to active duty under section 
12301(h)(1) of this title to receive medical care for the wound, 
injury, or illness, each day of active duty under that order for 
medical care shall be treated as a continuation of the original 
call or order to active duty for purposes of reducing the eligibility 
age of the member under this paragraph.’’.
H. R. 6523—105 
SEC. 634. CONFORMITY OF SPECIAL COMPENSATION FOR MEMBERS 
WITH INJURIES OR ILLNESSES REQUIRING ASSISTANCE 
IN EVERYDAY LIVING WITH MONTHLY PERSONAL CARE-
GIVER STIPEND UNDER DEPARTMENT OF VETERANS 
AFFAIRS PROGRAM OF COMPREHENSIVE ASSISTANCE FOR 
FAMILY CAREGIVERS. 
Subsection (c) of section 439 of title 37, United States Code, 
is amended to read as follows: 
‘‘(c) AMOUNT.—The amount of monthly special compensation 
payable to a member under subsection (a) shall be the amount 
as follows: 
‘‘(1) The monthly amount of aid and attendance payable 
under section 1114(r)(2) of title 38. 
‘‘(2) Upon the establishment by the Secretary of Veterans 
Affairs pursuant to subparagraph (C) of section 1720G(a)(3) 
of title 38 of the schedule of monthly personal caregiver stipends 
under the Department of Veterans Affairs program of com-
prehensive assistance for family caregivers under subparagraph 
(A)(ii)(V) of such section, the monthly personal caregiver stipend 
payable with respect to similarly circumstanced veterans under 
such schedule, rather than the amount specified in paragraph 
(1).’’. 
SEC. 635. SENSE OF CONGRESS CONCERNING AGE AND SERVICE 
REQUIREMENTS FOR RETIRED PAY FOR NON-REGULAR 
SERVICE. 
It is the sense of Congress that— 
(1) the amendments made to section 12731 of title 10, 
United States Code, by section 647 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110–181; 
122 Stat. 160) were intended to reduce the minimum age at 
which members of a reserve component of the Armed Forces 
would begin receiving retired pay according to time spent 
deployed, by three months for every 90-day period spent on 
active duty over the course of a career, rather than limiting 
qualifying time to such periods wholly served within the same 
fiscal year, as interpreted by the Department of Defense; and 
(2) steps should be taken by the Department of Defense 
to implement the congressional intent outlined in paragraph 
(1). 
Subtitle 
E—Commissary 
and 
Non-
appropriated Fund Instrumentality Ben-
efits and Operations 
SEC. 641. ADDITION OF DEFINITION OF MORALE, WELFARE, AND 
RECREATION TELEPHONE SERVICES FOR USE IN CON-
TRACTS TO PROVIDE SUCH SERVICES FOR MILITARY PER-
SONNEL SERVING IN COMBAT ZONES. 
Section 885 of the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 122 Stat. 265; 10 U.S.C. 2304 
note) is amended by adding at the end the following new subsection: 
‘‘(c) MORALE, WELFARE, AND RECREATION TELEPHONE SERVICES 
DEFINED.—In this section, the term ‘morale, welfare, and recreation 
telephone services’ means unofficial telephone calling center services
H. R. 6523—106 
supporting calling centers provided by the Army and Air Force 
Exchange Service, Navy Exchange Service Command, Marine Corps 
exchanges, or any other nonappropriated fund instrumentality of 
the United States under the jurisdiction of the Armed Forces which 
is conducted for the comfort, pleasure, contentment, or physical 
or mental improvement of members of the Armed Forces.’’. 
SEC. 
642. 
FEASIBILITY 
STUDY 
ON 
ESTABLISHMENT 
OF 
FULL 
EXCHANGE STORE IN THE NORTHERN MARIANA ISLANDS. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report containing the results of a study to determine the feasibility 
of replacing the ‘‘Shoppette’’ of the Army and Air Force Exchange 
Service in the Northern Mariana Islands with a full-service 
exchange store. 
SEC. 643. CONTINUATION OF COMMISSARY AND EXCHANGE OPER-
ATIONS AT BRUNSWICK NAVAL AIR STATION, MAINE. 
(a) CONTINUATION OF OPERATIONS.—The Secretary of Defense 
shall provide for the continuation of commissary and exchange 
operations at Brunswick Naval Air Station, Maine, until the later 
of the following: 
(1) The closure of Brunswick Naval Air Station. 
(2) The end of the 60-day period beginning on the date 
on which the Secretary of Defense makes the determination 
under subsection (b). 
(b) REVIEW AND DETERMINATION.—Not earlier than 120 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall— 
(1) review any report prepared by the Comptroller General 
of the United States relating to commissary and exchange 
operations at Brunswick Naval Air Station, Maine; and 
(2) based on such review, make a determination regarding 
whether such operations should be continued. 
Subtitle F—Other Matters 
SEC. 651. REPORT ON BASIC ALLOWANCE FOR HOUSING FOR PER-
SONNEL ASSIGNED TO SEA DUTY. 
(a) REPORT REQUIRED.—Not later than July 1, 2011, the Sec-
retary of Defense shall submit to the congressional defense commit-
tees a report containing the following: 
(1) A review of the standards used to determine the 
monthly rates of basic allowance for housing for personnel 
assigned to sea duty (under section 403 of title 37, United 
States Code). 
(2) A review of the legislative framework and policies 
applicable to eligibility and levels of compensation for single 
and married personnel, with and without dependents, who are 
assigned to sea duty. 
(3) Any recommendation for modifications of title 37, 
United States Code, relating to basic allowance for housing 
for personnel who are assigned to sea duty that the Secretary 
considers appropriate, including an estimate of the cost of each 
modification. 
(b) ELEMENTS OF REVIEWS.—In conducting the reviews for pur-
poses of subsection (a), the Secretary shall consider whether existing
H. R. 6523—107 
law, policies, and housing standards are suitable in terms of the 
following: 
(1) The cost and availability of housing ashore for personnel 
assigned to sea duty. 
(2) The pay and allowances (other than basic allowance 
for housing) payable to personnel who are assigned to sea 
duty, including basic pay, career sea pay, and the family separa-
tion allowance. 
(3) The comparability in levels of compensation for single 
and married personnel, with and without dependents, who are 
assigned to sea duty. 
(4) The provision of appropriate quality of life and retention 
incentives for members in all grades who are assigned to sea 
duty. 
(5) The provision of appropriate recognition and motivation 
for promotion to higher military grades of personnel who are 
assigned to sea duty. 
(6) Budgetary constraints and rising personnel costs. 
SEC. 652. REPORT ON SAVINGS FROM ENHANCED MANAGEMENT OF 
SPECIAL 
PAY 
FOR 
AVIATION 
CAREER 
OFFICERS 
EXTENDING PERIOD OF ACTIVE DUTY. 
(a) REPORT REQUIRED.—Not later than August 1, 2011, the 
Secretary of Defense shall submit to the congressional defense 
committees a report regarding the use and management of the 
special pay programs authorized in section 301b of title 37, United 
States Code, for aviation career officers extending a period of active 
duty. 
(b) ELEMENTS OF REPORT.—The report required by subsection 
(a) shall include the following: 
(1) A review of the programs operated by the Secretaries 
of the military departments, including— 
(A) directives and guidelines issued by the Secretary 
of Defense; 
(B) the number of aviation officers receiving the special 
pay, listed by weapon system; 
(C) the weapon systems for which special pay is not 
authorized and the number of aviation officers affected 
by such exclusion; 
(D) the policy and structure of the programs and the 
retention philosophy supporting the policy and structure 
of the programs; 
(E) the amounts paid to individual aviation officers, 
annually and over the course of a career; and 
(F) the amounts budgeted annually for such programs. 
(2) An accounting of aviation officers receiving the special 
pay who have an active duty service commitment and the 
totals of aviation officers and allocated funding by types of 
active duty service commitment. 
(3) A review of retention trends for aviation officers, gen-
erally and by weapon system, within the military departments 
and an assessment of the factors that influence retention 
trends, and the reliability and durability of those trends if 
such factors are altered. 
(4) An assessment of the funds that can be saved by restruc-
turing or eliminating such programs to reduce payments to 
aviation officers associated with those weapon systems with
H. R. 6523—108 
strong retention trends and aviation officers with active duty 
service commitments. 
(5) A review of the demand for former military aviation 
officers to fulfill commercial airline hiring requirements, recent 
data regarding airline hiring of former military aviation officers, 
and an assessment of the methods used by airlines to qualify 
pilot candidates for employment as commercial pilots. 
(6) Any recommendations for modifications of title 37, 
United States Code, relating to special pay for aviation career 
officers extending a period of active duty. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—Improvements to Health Benefits 
Sec. 701. Extension of prohibition on increases in certain health care costs. 
Sec. 702. Extension of dependent coverage under the TRICARE program. 
Sec. 703. Survivor dental benefits. 
Sec. 704. Aural screenings for members of the Armed Forces. 
Sec. 705. Temporary prohibition on increase in copayments under retail pharmacy 
system of pharmacy benefits program. 
Subtitle B—Health Care Administration 
Sec. 711. Administration of TRICARE. 
Sec. 712. Postdeployment health reassessments for purposes of the medical track-
ing system for members of the Armed Forces deployed overseas. 
Sec. 713. Clarification of licensure requirements applicable to military health-care 
professionals who are members of the National Guard performing cer-
tain duty while in State status. 
Sec. 714. Improvements to oversight of medical training for Medical Corps officers. 
Sec. 715. Health information technology. 
Sec. 716. Education and training on use of pharmaceuticals in rehabilitation pro-
grams for wounded warriors. 
Subtitle C—Other Matters 
Sec. 721. Repeal of report requirement on separations resulting from refusal to par-
ticipate in anthrax vaccine immunization program. 
Sec. 722. Comprehensive policy on consistent neurological cognitive assessments of 
members of the Armed Forces before and after deployment. 
Sec. 723. Assessment of post-traumatic stress disorder by military occupation. 
Sec. 724. Licensed mental health counselors and the TRICARE program. 
Subtitle A—Improvements to Health 
Benefits 
SEC. 701. EXTENSION OF PROHIBITION ON INCREASES IN CERTAIN 
HEALTH CARE COSTS. 
(a) CHARGES UNDER CONTRACTS FOR MEDICAL CARE.—Section 
1097(e) of title 10, United States Code, is amended by striking 
‘‘September 30, 2009’’ and inserting ‘‘September 30, 2011’’. 
(b) CHARGES FOR INPATIENT CARE.—Section 1086(b)(3) of such 
title is amended by striking ‘‘September 30, 2010’’ and inserting 
‘‘September 30, 2011’’. 
SEC. 702. EXTENSION OF DEPENDENT COVERAGE UNDER THE TRICARE 
PROGRAM. 
(a) DEPENDENT COVERAGE.— 
(1) IN GENERAL.—Chapter 55 of title 10, United States 
Code, is amended by adding at the end the following new 
section:
H. R. 6523—109 
‘‘§ 1110b. TRICARE program: extension of dependent cov-
erage 
‘‘(a) IN GENERAL.—In accordance with subsection (c), an indi-
vidual described in subsection (b) shall be deemed to be a dependent 
(as described in section 1072(2)(D) of this title) for purposes of 
coverage under the TRICARE program. 
‘‘(b) INDIVIDUAL DESCRIBED.—An individual described in this 
subsection is an individual who— 
‘‘(1) would be a dependent under section 1072(2) of this 
title but for exceeding an age limit under such section; 
‘‘(2) has not attained the age of 26; 
‘‘(3) is not eligible to enroll in an eligible employer-spon-
sored plan (as defined in section 5000A(f)(2) of the Internal 
Revenue Code of 1986); 
‘‘(4) is not otherwise a dependent of a member or a former 
member under any subparagraph of section 1072(2) of this 
title; and 
‘‘(5) meets other criteria specified in regulations prescribed 
by the Secretary, similar to regulations prescribed by the Sec-
retary of Health and Human Services under section 2714(b) 
of the Public Health Service Act. 
‘‘(c) PREMIUM.—(1) The Secretary shall prescribe by regulation 
a premium (or premiums) for coverage under the TRICARE program 
provided pursuant to this section to an individual described in 
subsection (b). 
‘‘(2) The monthly amount of the premium in effect for a month 
for coverage under the TRICARE program pursuant to this section 
shall be the amount equal to the cost of such coverage that the 
Secretary determines on an appropriate actuarial basis. 
‘‘(3) The Secretary shall prescribe the requirements and proce-
dures applicable to the payment of premiums under this subsection. 
‘‘(4) Amounts collected as premiums under this subsection shall 
be credited to the appropriation available for the Defense Health 
Program Account under section 1100 of this title, shall be merged 
with sums in such Account that are available for the fiscal year 
in which collected, and shall be available under subsection (b) 
of such section for such fiscal year.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1110a the following new item: 
‘‘1110b. TRICARE program: extension of dependent coverage.’’. 
(b) EFFECTIVE DATE
AND REGULATIONS.—The amendments 
made by this section shall take effect on January 1, 2011. The 
Secretary of Defense shall prescribe an interim final rule with 
respect to such amendments, effective not later than January 1, 
2011. 
SEC. 703. SURVIVOR DENTAL BENEFITS. 
Paragraph (2) of section 1076a(k) of title 10, United States 
Code, is amended to read as follows: 
‘‘(2) Such term includes any such dependent of a member who 
dies— 
‘‘(A) while on active duty for a period of more than 30 
days; or 
‘‘(B) while such member is a member of the Ready 
Reserve.’’.
H. R. 6523—110 
SEC. 704. AURAL SCREENINGS FOR MEMBERS OF THE ARMED FORCES. 
(a) TINNITUS SCREENING.— 
(1) STUDY REQUIRED.—Not later than September 30, 2011, 
the Secretary of Defense shall conduct a study to identify 
the best tests currently available to screen members of the 
Armed Forces for tinnitus. 
(2) PLAN.—Not later than December 31, 2011, the Secretary 
shall develop a plan to ensure that all members of the Armed 
Forces are screened for tinnitus prior to and after a deployment 
to a combat zone. 
(3) REPORT.—Not later than December 31, 2011, the Sec-
retary shall submit to the congressional defense committees 
a report containing the results of the study under paragraph 
(1) and the plan under paragraph (2). 
(b) IMPROVING AURAL PROTECTION FOR MEMBERS OF THE ARMED 
FORCES.— 
(1) IN GENERAL.—In accordance with section 721 of the 
Duncan Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110–417; 122 Stat. 4506), the Secretary 
of Defense shall examine methods to improve the aural protec-
tion for members of the Armed Forces in combat. 
(2) REPORT.—Not later than one year after the date of 
the enactment of this Act, the Secretary shall submit to the 
congressional defense committees a report on the methods to 
improve aural protection examined under subsection (a). 
(c) CENTER OF EXCELLENCE.—The Secretary shall ensure that 
all studies, findings, plans, and reports conducted or submitted 
under this section are transmitted to the center of excellence estab-
lished by section 721 of the Duncan Hunter National Defense 
Authorization Act for Fiscal Year 2009 (Public Law 110–417; 122 
Stat. 4506). 
SEC. 705. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS 
UNDER RETAIL PHARMACY SYSTEM OF PHARMACY BENE-
FITS PROGRAM. 
During the period beginning on October 1, 2010, and ending 
on September 30, 2011, the cost sharing requirements established 
under paragraph (6) of section 1074g(a) of title 10, United States 
Code, for pharmaceutical agents available through retail phar-
macies covered by paragraph (2)(E)(ii) of such section may not 
exceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
Subtitle B—Health Care Administration 
SEC. 711. ADMINISTRATION OF TRICARE. 
Subsection (a) of section 1073 of title 10, United States Code, 
is amended— 
(1) by striking ‘‘Except’’ and inserting ‘‘(1) Except’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) Except as otherwise provided in this chapter, the Secretary 
of Defense shall have responsibility for administering the TRICARE 
program and making any decision affecting such program.’’.
H. R. 6523—111 
SEC. 712. POSTDEPLOYMENT HEALTH REASSESSMENTS FOR PUR-
POSES OF THE MEDICAL TRACKING SYSTEM FOR MEM-
BERS OF THE ARMED FORCES DEPLOYED OVERSEAS. 
(a) REQUIREMENT
FOR POSTDEPLOYMENT HEALTH REASSESS-
MENTS.—Paragraph (1) of subsection (b) of section 1074f of title 
10, United States Code, is amended to read as follows: 
‘‘(1)(A) The system described in subsection (a) shall include 
the use of predeployment medical examinations and postdeployment 
medical examinations (including the assessment of mental health 
and the drawing of blood samples) and postdeployment health 
reassessments to— 
‘‘(i) accurately record the health status of members before 
their deployment; 
‘‘(ii) accurately record any changes in their health status 
during the course of their deployment; and 
‘‘(iii) identify health concerns, including mental health con-
cerns, that may become manifest several months following their 
deployment. 
‘‘(B) The postdeployment medical examination shall be con-
ducted when the member is redeployed or otherwise leaves an 
area in which the system is in operation (or as soon as possible 
thereafter). 
‘‘(C) The postdeployment health reassessment shall be con-
ducted at an appropriate time during the period beginning 90 
days after the member is redeployed and ending 180 days after 
the member is redeployed.’’. 
(b) INCORPORATION
IN
REASSESSMENTS
OF
ELEMENTS
OF 
PREDEPLOYMENT AND POSTDEPLOYMENT MEDICAL EXAMINATIONS.— 
Paragraph (2) of such subsection is amended by striking ‘‘and 
postdeployment medical examination’’ and inserting ‘‘medical exam-
ination, postdeployment medical examination, and postdeployment 
health reassessment’’. 
(c) 
RECORDKEEPING.—Subsection 
(c) 
of 
such 
section 
is 
amended— 
(1) by inserting ‘‘and reassessments’’ after ‘‘medical 
examinations’’; and 
(2) by inserting ‘‘and the prescription and administration 
of psychotropic medications’’ after ‘‘including immunizations’’. 
(d) QUALITY ASSURANCE.—Subsection (d) of such section is 
amended— 
(1) in paragraph (1), by striking ‘‘and postdeployment med-
ical examinations’’ and inserting ‘‘, postdeployment medical 
examinations, and postdeployment health reassessments’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by inserting ‘‘and reassess-
ments’’ after ‘‘postdeployment health assessments’’; and 
(B) in subparagraph (B), by inserting ‘‘and reassess-
ments’’ after ‘‘such assessments’’. 
SEC. 
713. 
CLARIFICATION 
OF 
LICENSURE 
REQUIREMENTS 
APPLICABLE TO MILITARY HEALTH-CARE PROFESSIONALS 
WHO ARE MEMBERS OF THE NATIONAL GUARD PER-
FORMING CERTAIN DUTY WHILE IN STATE STATUS. 
Section 1094(d) of title 10, United States Code, is amended— 
(1) in paragraph (1), by inserting ‘‘or (3)’’ after ‘‘paragraph 
(2)’’;
H. R. 6523—112 
(2) in paragraph (2), by inserting ‘‘as being described in 
this paragraph’’ after ‘‘paragraph (1)’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(3) A health-care professional referred to in paragraph (1) 
as being described in this paragraph is a member of the National 
Guard who— 
‘‘(A) has a current license to practice medicine, osteopathic 
medicine, dentistry, or another health profession; and 
‘‘(B) is performing training or duty under section 502(f) 
of title 32 in response to an actual or potential disaster.’’. 
SEC. 714. IMPROVEMENTS TO OVERSIGHT OF MEDICAL TRAINING FOR 
MEDICAL CORPS OFFICERS. 
(a) REVIEW OF TRAINING PROGRAMS FOR MEDICAL OFFICERS.— 
(1) REVIEW.—The Secretary of Defense shall conduct a 
review of training programs for medical officers (as defined 
in section 101(b)(14) of title 10, United States Code) to ensure 
that the academic and military performance of such officers 
has been completely documented in military personnel records. 
The programs reviewed shall include, at a minimum, the fol-
lowing: 
(A) Programs at the Uniformed Services University 
of the Health Sciences that award a medical doctor degree. 
(B) Selected residency programs at military medical 
treatment facilities, as determined by the Secretary, to 
include at least one program in each of the specialties 
of— 
(i) anesthesiology; 
(ii) emergency medicine; 
(iii) family medicine; 
(iv) general surgery; 
(v) neurology; 
(vi) obstetrics/gynecology; 
(vii) pathology; 
(viii) pediatrics; and 
(ix) psychiatry. 
(2) REPORT.—Not later than one year after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on the findings 
of the review under paragraph (1). 
(b) ANNUAL REPORT ON GRADUATE MEDICAL EDUCATION PRO-
GRAMS.— 
(1) ANNUAL REPORT.—Not later than April 1, 2011, and 
annually thereafter through 2015, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the status of the graduate medical education programs of 
the Department of Defense. 
(2) ELEMENTS.—Each report under paragraph (1) shall 
include the following: 
(A) An identification of each graduate medical edu-
cation program of the Department of Defense in effect 
during the previous fiscal year, including for each such 
program, the military department responsible, the location, 
the medical specialty, the period of training required, and 
the number of students by year.
H. R. 6523—113 
(B) The status of each program referred to in subpara-
graph (A), including, for each such program, an identifica-
tion of the fiscal year in which the last action was taken 
with respect to each of the following: 
(i) Initial accreditation. 
(ii) Continued accreditation. 
(iii) If applicable, probation, and the reasons for 
probationary status. 
(iv) If applicable, withheld or withdrawn accredita-
tion, and the reasons for such action. 
(C) A discussion of trends in the graduate medical 
education programs of the Department. 
(D) A discussion of challenges faced by such programs, 
and a description and assessment of strategies and plans 
to address such challenges. 
(E) Such other matters as the Secretary considers 
appropriate. 
SEC. 715. HEALTH INFORMATION TECHNOLOGY. 
(a) ENTERPRISE RISK ASSESSMENT METHODOLOGY STUDY.— 
(1) STUDY REQUIRED.—The Secretary of Defense shall con-
duct an enterprise risk assessment methodology study of all 
health information technology programs of the Department of 
Defense. 
(2) REPORT.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall submit to the 
congressional defense committees a report containing the 
results of the study required under paragraph (1). 
(b) REPORT ON HEALTH INFORMATION TECHNOLOGY ORGANIZA-
TIONAL STRUCTURE AND FUTURE PLANS.— 
(1) REPORT REQUIRED.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the organizational structure for health information tech-
nology within the Department of Defense. 
(2) ELEMENTS.—The report required under paragraph (1) 
shall include the following: 
(A) Organizational charts for all organizations involved 
with health information technology showing, at a minimum, 
the senior positions in each office and each activity. 
(B) A description of the functions and responsibilities, 
to include policy formulation, policy and program execution, 
and program oversight, of each senior position for health 
information technology. 
(C) An assessment of how well the health information 
systems of the Department of Defense interact with the 
health information systems of— 
(i) the Department of Veterans Affairs; and 
(ii) entities other than the Federal Government. 
(D) A description of the role played by the Interagency 
Program Office established by section 1635 of the Wounded 
Warrior Act (title XVI of Public Law 110–181; 10 U.S.C. 
1071 note) and whether the office is satisfactorily per-
forming the functions required by such section, as well 
as recommendations for administrative or legislative action 
as the Secretary considers appropriate.
H. R. 6523—114 
(E) A complete description of all future plans for legacy 
systems and new electronic health record initiatives, 
including the joint virtual lifetime electronic record. 
(F) The results of the survey described in paragraph 
(3). 
(3) SURVEY.—The Secretary shall conduct a survey of users 
of the health information technology systems of the Department 
of Defense to assess the benefits and failings of such systems. 
(4) DEFINITIONS.—In this subsection: 
(A) The term ‘‘senior position’’ means a position filled 
by a member of the senior executive service, a position 
on the Executive Schedule established pursuant to title 
5, United States Code, or a position filled by a general 
or flag officer. 
(B) The term ‘‘senior personnel’’ means personnel who 
are members of the senior executive service, who fill a 
position listed on the Executive Schedule established pursu-
ant to title 5, United States Code, or who are general 
or flag officers. 
(c) REPORT ON GAO REPORT REQUIRED.—Not later than March 
31, 2011, the Secretary of Defense shall submit to the congressional 
defense committees a report on the report by the Comptroller Gen-
eral of the United States titled ‘‘Information Technology: Opportuni-
ties Exist to Improve Management of DOD’s Electronic Health 
Record Initiative’’ (GAO-11-50), including— 
(1) the status of implementing the recommendations made 
in such report; and 
(2) for each such recommendation that has not been imple-
mented, the reason why the recommendation has not been 
implemented. 
SEC. 716. EDUCATION AND TRAINING ON USE OF PHARMACEUTICALS 
IN REHABILITATION PROGRAMS FOR WOUNDED WAR-
RIORS. 
(a) EDUCATION
AND TRAINING REQUIRED.—The Secretary of 
Defense shall develop and implement training, available through 
the Internet or other means, on the use of pharmaceuticals in 
rehabilitation programs for seriously ill or injured members of the 
Armed Forces. 
(b) RECIPIENTS
OF TRAINING.—The training developed and 
implemented under subsection (a) shall be training for each category 
of individuals as follows: 
(1) Patients in or transitioning to a wounded warrior unit, 
with special accommodation in such training for such patients 
with cognitive disabilities. 
(2) Nonmedical case managers. 
(3) Military leaders. 
(4) Family members. 
(c) ELEMENTS OF TRAINING.—The training developed and imple-
mented under subsection (a) shall include the following: 
(1) An overview of the fundamentals of safe prescription 
drug use. 
(2) Familiarization with the benefits and risks of using 
pharmaceuticals in rehabilitation therapies. 
(3) Examples of the use of pharmaceuticals for individuals 
with multiple, complex injuries, including traumatic brain 
injury and post-traumatic stress disorder.
H. R. 6523—115 
(4) Familiarization with means of finding additional 
resources for information on pharmaceuticals. 
(5) Familiarization with basic elements of pain and 
pharmaceutical management. 
(6) Familiarization with complementary and alternative 
therapies. 
(d) TAILORING OF TRAINING.—The training developed and imple-
mented under subsection (a) shall appropriately tailor the elements 
specified in subsection (c) for and among each category of individuals 
set forth in subsection (b). 
(e) REVIEW OF PHARMACY.— 
(1) REVIEW.—The Secretary shall review all policies and 
procedures of the Department of Defense regarding the use 
of pharmaceuticals in rehabilitation programs for seriously ill 
or injured members of the Armed Forces. 
(2) RECOMMENDATIONS.—Not later than September 20, 
2011, the Secretary shall submit to the congressional defense 
committees any recommendations for administrative or legisla-
tive action with respect to the review under paragraph (1) 
as the Secretary considers appropriate. 
Subtitle C—Other Matters 
SEC. 721. REPEAL OF REPORT REQUIREMENT ON SEPARATIONS 
RESULTING FROM REFUSAL TO PARTICIPATE IN ANTHRAX 
VACCINE IMMUNIZATION PROGRAM. 
Section 1178 of title 10, United States Code, is amended— 
(1) by striking ‘‘(a) REQUIREMENT TO ESTABLISH SYSTEM.— 
’’; and 
(2) by striking subsection (b). 
SEC. 722. COMPREHENSIVE POLICY ON CONSISTENT NEUROLOGICAL 
COGNITIVE ASSESSMENTS OF MEMBERS OF THE ARMED 
FORCES BEFORE AND AFTER DEPLOYMENT. 
(a) COMPREHENSIVE POLICY REQUIRED.—Not later than January 
31, 2011, the Secretary of Defense shall develop and implement 
a comprehensive policy on consistent neurological cognitive assess-
ments of members of the Armed Forces before and after deployment. 
(b) UPDATES.—The Secretary shall revise the policy required 
by subsection (a) on a periodic basis in accordance with experience 
and evolving best practice guidelines. 
SEC. 723. ASSESSMENT OF POST-TRAUMATIC STRESS DISORDER BY 
MILITARY OCCUPATION. 
(a) ASSESSMENT.—The Secretaries of the military departments 
shall each conduct an assessment of post-traumatic stress disorder 
incidence by military occupation, including identification of military 
occupations with a high incidence of such disorder. 
(b) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Secretaries shall each submit to the 
congressional defense committees a report on the assessment under 
subsection (a). 
(c) CENTERS OF EXCELLENCE.—The Secretary of Defense shall 
ensure that all studies, findings, plans, and reports conducted or 
submitted under this section are transmitted to the centers of 
excellence established by sections 1621 and 1622 of the Wounded 
Warrior Act (title XVI of Public Law 110–181).
H. R. 6523—116 
SEC. 724. LICENSED MENTAL HEALTH COUNSELORS AND THE TRICARE 
PROGRAM. 
Not later than June 20, 2011, the Secretary of Defense shall 
prescribe the regulations required by section 717 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public Law 110– 
181; 10 U.S.C. 1073 note). 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Disclosure to litigation support contractors. 
Sec. 802. Designation of engine development and procurement program as major 
subprogram. 
Sec. 803. Enhancement of Department of Defense authority to respond to combat 
and safety emergencies through rapid acquisition and deployment of ur-
gently needed supplies. 
Sec. 804. Review of acquisition process for rapid fielding of capabilities in response 
to urgent operational needs. 
Sec. 805. Acquisition of major automated information system programs. 
Sec. 806. Requirements for information relating to supply chain risk. 
Subtitle B—Provisions Relating to Major Defense Acquisition Programs 
Sec. 811. Cost estimates for program baselines and contract negotiations for major 
defense acquisition and major automated information system programs. 
Sec. 812. Management of manufacturing risk in major defense acquisition pro-
grams. 
Sec. 813. Modification and extension of requirements of the Weapon System Acqui-
sition Reform Act of 2009. 
Sec. 814. Inclusion of major subprograms to major defense acquisition programs 
under various acquisition-related requirements. 
Subtitle C—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 821. Provisions relating to fire resistant fiber for production of military uni-
forms. 
Sec. 822. Repeal of requirement for certain procurements from firms in the small 
arms production industrial base. 
Sec. 823. Review of regulatory definition relating to production of specialty metals. 
Sec. 824. Guidance relating to rights in technical data. 
Sec. 825. Extension of sunset date for certain protests of task and delivery order 
contracts. 
Sec. 826. Inclusion of option amounts in limitations on authority of the Department 
of Defense to carry out certain prototype projects. 
Sec. 827. Permanent authority for Defense Acquisition Challenge Program; pilot ex-
pansion of Program. 
Sec. 828. Energy savings performance contracts. 
Sec. 829. Definition of materials critical to national security. 
Subtitle D—Contractor Matters 
Sec. 831. Oversight and accountability of contractors performing private security 
functions in areas of combat operations. 
Sec. 832. Extension of regulations on contractors performing private security func-
tions to areas of other significant military operations. 
Sec. 833. Standards and certification for private security contractors. 
Sec. 834. Enhancements of authority of Secretary of Defense to reduce or deny 
award fees to companies found to jeopardize the health or safety of Gov-
ernment personnel. 
Sec. 835. Annual joint report and Comptroller General review on contracting in 
Iraq and Afghanistan. 
Subtitle E—Other Matters 
Sec. 841. Improvements to structure and functioning of Joint Requirements Over-
sight Council.
H. R. 6523—117 
Sec. 842. Department of Defense policy on acquisition and performance of sustain-
able products and services. 
Sec. 843. Assessment and plan for critical rare earth materials in defense applica-
tions. 
Sec. 844. Review of national security exception to competition. 
Sec. 845. Requirement for entities with facility clearances that are not under for-
eign ownership control or influence mitigation. 
Sec. 846. Procurement of photovoltaic devices. 
Sec. 847. Non-availability exception from Buy American requirements for procure-
ment of hand or measuring tools. 
Sec. 848. Contractor logistics support of contingency operations. 
Subtitle F—Improve Acquisition Act 
Sec. 860. Short title. 
PART I—DEFENSE ACQUISITION SYSTEM 
Sec. 861. Improvements to the management of the defense acquisition system. 
Sec. 862. Comptroller General report on Joint Capabilities Integration and Devel-
opment System. 
Sec. 863. Requirements for the acquisition of services. 
Sec. 864. Review of defense acquisition guidance. 
Sec. 865. Requirement to review references to services acquisition throughout the 
Federal Acquisition Regulation and the Defense Federal Acquisition 
Regulation Supplement. 
Sec. 866.
Pilot program on acquisition of military purpose nondevelopmental 
items. 
PART II—DEFENSE ACQUISITION WORKFORCE 
Sec. 871. Acquisition workforce excellence. 
Sec. 872. Amendments to the acquisition workforce demonstration project. 
Sec. 873. Career development for civilian and military personnel in the acquisition 
workforce. 
Sec. 874. Recertification and training requirements. 
Sec. 875. Information technology acquisition workforce. 
Sec. 876. Definition of acquisition workforce. 
Sec. 877. Defense Acquisition University curriculum review. 
PART III—FINANCIAL MANAGEMENT 
Sec. 881. Audit readiness of financial statements of the Department of Defense. 
Sec. 882. Review of obligation and expenditure thresholds. 
Sec. 883. Disclosure and traceability of the cost of Department of Defense health 
care contracts. 
PART IV—INDUSTRIAL BASE 
Sec. 891. Expansion of the industrial base. 
Sec. 892. Price trend analysis for supplies and equipment purchased by the Depart-
ment of Defense. 
Sec. 893. Contractor business systems. 
Sec. 894. Review and recommendations on eliminating barriers to contracting with 
the Department of Defense. 
Sec. 895. Inclusion of the providers of services and information technology in the 
national technology and industrial base. 
Sec. 896. Deputy Assistant Secretary of Defense for Manufacturing and Industrial 
Base Policy; Industrial Base Fund. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. DISCLOSURE TO LITIGATION SUPPORT CONTRACTORS. 
(a) IN GENERAL.—Section 2320 of title 10, United States Code, 
is amended— 
(1) in subsection (c)(2)— 
(A) by striking ‘‘subsection (a), allowing’’ and inserting 
‘‘subsection (a)— 
‘‘(A) allowing’’; and 
(B) by adding at the end the following new subpara-
graph:
H. R. 6523—118 
‘‘(B) allowing a covered litigation support contractor 
access to and use of any technical, proprietary, or confiden-
tial data delivered under a contract for the sole purpose 
of providing litigation support to the Government in the 
form of administrative, technical, or professional services 
during or in anticipation of litigation; or’’; and 
(2) by inserting after subsection (f) the following: 
‘‘(g) In this section, the term ‘covered litigation support con-
tractor’ means a contractor (including an expert or technical consult-
ant) under contract with the Department of Defense to provide 
litigation support, which contractor executes a contract with the 
Government agreeing to and acknowledging— 
‘‘(1) that proprietary or nonpublic technical data furnished 
will be accessed and used only for the purposes stated in 
that contract; 
‘‘(2) that the covered litigation support contractor will take 
all reasonable steps to protect the proprietary and nonpublic 
nature of the technical data furnished to the covered litigation 
support contractor; and 
‘‘(3) that such technical data provided to the covered litiga-
tion support contractor under the authority of this section shall 
not be used by the covered litigation support contractor to 
compete against the third party for Government or non-Govern-
ment contracts.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date that is 120 days after the date 
of the enactment of this Act. 
SEC. 802. DESIGNATION OF ENGINE DEVELOPMENT AND PROCURE-
MENT PROGRAM AS MAJOR SUBPROGRAM. 
(a) DESIGNATION AS MAJOR SUBPROGRAM.—Not later than 30 
days after the date of the enactment of this Act, the Secretary 
of Defense shall designate an engine development and procurement 
program as a major subprogram of the F–35 Lightning II aircraft 
major defense acquisition program, in accordance with section 2430a 
of title 10, United States Code. 
(b) ORIGINAL BASELINE.—For purposes of reporting require-
ments referred to in section 2430a(b) of title 10, United States 
Code, for the major subprogram designated under subsection (a), 
the Secretary shall use the Milestone B decision as the original 
baseline for the subprogram. 
(c) ACTIONS FOLLOWING CRITICAL COST GROWTH.— 
(1) IN GENERAL.—Subject to paragraph (2), to the extent 
that the Secretary elects to restructure the Lightning II aircraft 
major defense acquisition program subsequent to a reassess-
ment and actions required by subsections (a) and (c) of section 
2433a of title 10, United States Code, during fiscal year 2010, 
and also conducts such reassessment and actions with respect 
to an F–35 engine development and procurement program 
(including related reporting based on the original baseline as 
defined in subsection (c)), the requirements of section 2433a 
of such title with respect to a major subprogram designated 
under subsection (a) shall be considered to be met with respect 
to the major subprogram. 
(2) LIMITATION.—Actions taken in accordance with para-
graph (1) shall be considered to meet the requirements of 
section 2433a of title 10, United States Code, with respect
H. R. 6523—119 
to a major subprogram designated under subsection (a) only 
to the extent that designation as a major subprogram would 
require the Secretary of Defense to conduct a reassessment 
and take actions pursuant to such section 2433a for such a 
subprogram upon enactment of this Act. The requirements 
of such section 2433a shall not be considered to be met with 
respect to such a subprogram in the event that additional 
programmatic changes, following the date of the enactment 
of this Act, cause the program acquisition unit cost or procure-
ment unit cost of such a subprogram to increase by a percentage 
equal to or greater than the critical cost growth threshold 
(as defined in section 2433(a)(5) of such title) for the subpro-
gram. 
SEC. 803. ENHANCEMENT OF DEPARTMENT OF DEFENSE AUTHORITY 
TO RESPOND TO COMBAT AND SAFETY EMERGENCIES 
THROUGH RAPID ACQUISITION AND DEPLOYMENT OF 
URGENTLY NEEDED SUPPLIES. 
(a) REQUIREMENT TO ESTABLISH PROCEDURES.—Subsection (a) 
of section 806 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (10 U.S.C. 2302 note) is amended— 
(1) in the matter preceding paragraph (1), by striking 
‘‘items’’ and inserting ‘‘supplies’’; and 
(2) by striking paragraph (1) and inserting the following 
new paragraph (1): 
‘‘(1)(A) currently under development by the Department 
of Defense or available from the commercial sector; or 
‘‘(B) require only minor modifications to supplies described 
in subparagraph (A); and’’. 
(b) ISSUES TO BE ADDRESSED.—Subsection (b) of such section 
is amended— 
(1) in paragraph (1)(B), by striking ‘‘items’’ and inserting 
‘‘supplies’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘items’’ and inserting ‘‘supplies’’; 
(B) in subparagraphs (A) and (B), by striking ‘‘an item’’ 
and inserting ‘‘the supplies’’; and 
(C) in subparagraph (C), by inserting ‘‘and utilization’’ 
after ‘‘deployment’’. 
(c) RESPONSE TO COMBAT EMERGENCIES.—Subsection (c) of such 
section is amended— 
(1) by striking ‘‘equipment’’ each place it appears other 
than paragraph (5) and inserting ‘‘supplies’’; 
(2) by striking ‘‘combat capability’’ each place it appears; 
(3) by striking ‘‘that has resulted in combat fatalities’’ 
each place it appears and inserting ‘‘that has resulted in combat 
casualties, or is likely to result in combat casualties’’; 
(4) in paragraph (1), by striking ‘‘is’’ and inserting ‘‘are’’; 
(5) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘is’’ each place 
it appears and inserting ‘‘are’’; and 
(B) in subparagraph (B), by striking ‘‘fatalities’’ at the 
end and inserting ‘‘casualties’’; 
(6) by amending paragraph (3) to read as follows: 
‘‘(3) In any fiscal year in which the Secretary makes a deter-
mination described in paragraph (1), the Secretary may use any
H. R. 6523—120 
funds available to the Department of Defense for that fiscal year 
for acquisitions of supplies under this section if the determination 
includes a written finding that the use of such funds is necessary 
to address the combat capability deficiency in a timely manner. 
The authority of this section may not be used to acquire supplies 
in an amount aggregating more than $200,000,000 during any 
such fiscal year.’’; 
(7) in paragraph (4)— 
(A) by inserting ‘‘, in consultation with the Director 
of the Office of Management and Budget,’’ after ‘‘shall’’; 
and 
(B) by striking ‘‘Each such notice’’ and inserting ‘‘For 
each such determination, the notice under the preceding 
sentence’’; and 
(8) in paragraph (5), by striking ‘‘that equipment’’ and 
inserting ‘‘the supplies concerned’’. 
(d) WAIVER
OF CERTAIN STATUES
AND REGULATIONS.—Sub-
section (d)(1) of such section is amended by striking ‘‘equipment’’ 
in subparagraphs (A), (B), and (C) and inserting ‘‘supplies’’. 
(e) TESTING REQUIREMENT.—Subsection (e) of such section is 
amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph (A), by 
striking ‘‘an item’’ and inserting ‘‘the supplies’’; and 
(B) in subparagraph (B), by striking ‘‘of the item’’ and 
all that follows through ‘‘requirements document’’ and 
inserting ‘‘of the supplies in meeting the original require-
ments for the supplies (as stated in a statement of the 
urgent operational need’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘an item’’ and inserting ‘‘supplies’’; and 
(B) by striking ‘‘the item’’ and inserting ‘‘the supplies’’; 
and 
(3) in paragraph (3), by striking ‘‘items’’ each place it 
appears and inserting ‘‘supplies’’. 
(f) LIMITATION.—Subsection (f) of such section is amended to 
read as follows: 
‘‘(f) LIMITATION.—In the case of supplies that are part of a 
major system for which a low-rate initial production quantity deter-
mination has been made pursuant to section 2400 of title 10, 
United States Code, the quantity of such supplies acquired using 
the procedures prescribed pursuant to this section may not exceed 
an amount consistent with complying with limitations on the 
quantity of articles approved for low-rate initial production for 
such system. Any such supplies shall be included in any relevant 
calculation of quantities for low-rate initial production for the 
system concerned.’’. 
SEC. 804. REVIEW OF ACQUISITION PROCESS FOR RAPID FIELDING 
OF CAPABILITIES IN RESPONSE TO URGENT OPERATIONAL 
NEEDS. 
(a) REVIEW OF RAPID ACQUISITION PROCESS REQUIRED.— 
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense shall 
complete a review of the process for the fielding of capabilities 
in response to urgent operational needs and submit a report 
on the review to the congressional defense committees.
H. R. 6523—121 
(2) REVIEW
AND
REPORT
REQUIREMENTS.—The review 
pursuant to this section shall include consideration of various 
improvements to the acquisition process for rapid fielding of 
capabilities in response to urgent operational needs. For each 
improvement, the report on the review shall discuss— 
(A) the Department’s review of the improvement; 
(B) if the improvement is being implemented by the 
Department, a schedule for implementing the improvement; 
and 
(C) if the improvement is not being implemented by 
the Department, an explanation of why the improvement 
is not being implemented. 
(3) IMPROVEMENTS TO BE CONSIDERED.—The improvements 
that shall be considered during the review are the following: 
(A) Providing a streamlined, expedited, and tightly 
integrated iterative approach to— 
(i) the identification and validation of urgent oper-
ational needs; 
(ii) the analysis of alternatives and identification 
of preferred solutions; 
(iii) the development and approval of appropriate 
requirements and acquisition documents; 
(iv) the identification and minimization of develop-
ment, integration, and manufacturing risks; 
(v) the consideration of operation and sustainment 
costs; 
(vi) the allocation of appropriate funding; and 
(vii) the rapid production and delivery of required 
capabilities. 
(B) Clearly defining the roles and responsibilities of 
the Office of the Secretary of Defense, the Joint Chiefs 
of Staff, the military departments, and other components 
of the Department of Defense for carrying out all phases 
of the process. 
(C) Designating a senior official within the Office of 
the Secretary of Defense with primary responsibility for 
making recommendations to the Secretary on the use of 
the authority provided by subsections (c) and (d) of section 
806 of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (10 U.S.C. 2302 note), as amended 
by section 803 of this Act, in appropriate circumstances. 
(D) Establishing a target date for the fielding of a 
capability pursuant to each validated urgent operational 
need. 
(E) Implementing a system for— 
(i) documenting key process milestones, such as 
funding, acquisition, fielding, and assessment decisions 
and actions; and 
(ii) tracking the cost, schedule, and performance 
of acquisitions conducted pursuant to the process. 
(F) Establishing a formal feedback mechanism for the 
commanders of the combatant commands to provide 
information to the Joint Chiefs of Staff and senior acquisi-
tion officials on how well fielded solutions are meeting 
urgent operational needs.
H. R. 6523—122 
(G) Establishing a dedicated source of funding for the 
rapid fielding of capabilities in response to urgent oper-
ational needs. 
(H) Issuing guidance to provide for the appropriate 
transition of capabilities acquired through rapid fielding 
into the traditional budget, requirements, and acquisition 
process for purposes of contracts for follow-on production, 
sustainment, and logistics support. 
(I) Such other improvements as the Secretary considers 
appropriate. 
(b) DISCRIMINATING URGENT OPERATIONAL NEEDS FROM TRADI-
TIONAL REQUIREMENTS.— 
(1) EXPEDITED REVIEW PROCESS.—Not later than 270 days 
after the date of the enactment of this Act, the Secretary 
shall develop and implement an expedited review process to 
determine whether capabilities proposed as urgent operational 
needs are appropriate for fielding through the process for the 
rapid fielding of capabilities or should be fielded through the 
traditional acquisition process. 
(2) ELEMENTS.—The review process developed and imple-
mented pursuant to paragraph (1) shall— 
(A) apply to the rapid fielding of capabilities in 
response to joint urgent operational need statements and 
to other urgent operational needs statements generated 
by the military departments and the combatant commands; 
(B) identify officials responsible for making determina-
tions described in paragraph (1); 
(C) establish appropriate time periods for making such 
determinations; 
(D) set forth standards and criteria for making such 
determinations based on considerations of urgency, risk, 
and life-cycle management; 
(E) establish appropriate thresholds for the applica-
bility of the review process, or of elements of the review 
process; and 
(F) authorize appropriate officials to make exceptions 
from standards and criteria established under subpara-
graph (D) in exceptional circumstances. 
(3) COVERED CAPABILITIES.—The review process developed 
and implemented pursuant to paragraph (1) shall provide that, 
subject to such exceptions as the Secretary considers appro-
priate for purposes of this section, the acquisition process for 
rapid fielding of capabilities in response to urgent operational 
needs is appropriate only for capabilities that— 
(A) can be fielded within a period of two to 24 months; 
(B) do not require substantial development effort; 
(C) are based on technologies that are proven and 
available; and 
(D) can appropriately be acquired under fixed price 
contracts. 
(4) INCLUSION IN REPORT.—The Secretary shall include a 
description of the expedited review process implemented pursu-
ant to paragraph (1) in the report required by subsection (a).
H. R. 6523—123 
SEC. 805. ACQUISITION OF MAJOR AUTOMATED INFORMATION SYSTEM 
PROGRAMS. 
(a) PROGRAM TO IMPROVE INFORMATION TECHNOLOGY PROC-
ESSES.— 
(1) IN GENERAL.—Chapter 131 of title 10, United States 
Code, is amended by inserting after section 2223 the following 
new section: 
‘‘§ 2223a. Information technology acquisition planning and 
oversight requirements 
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary of Defense 
shall establish a program to improve the planning and oversight 
processes for the acquisition of major automated information sys-
tems by the Department of Defense. 
‘‘(b) PROGRAM COMPONENTS.—The program established under 
subsection (a) shall include— 
‘‘(1) a documented process for information technology 
acquisition planning, requirements development and manage-
ment, project management and oversight, earned value manage-
ment, and risk management; 
‘‘(2) the development of appropriate metrics that can be 
implemented and monitored on a real-time basis for perform-
ance measurement of— 
‘‘(A) processes and development status of investments 
in major automated information system programs; 
‘‘(B) continuous process improvement of such programs; 
and 
‘‘(C) achievement of program and investment outcomes; 
‘‘(3) a process to ensure that key program personnel have 
an appropriate level of experience, training, and education in 
the planning, acquisition, execution, management, and over-
sight of information technology systems; 
‘‘(4) a process to ensure sufficient resources and infrastruc-
ture capacity for test and evaluation of information technology 
systems; 
‘‘(5) a process to ensure that military departments and 
Defense Agencies adhere to established processes and require-
ments relating to the planning, acquisition, execution, manage-
ment, and oversight of information technology programs and 
developments; and 
‘‘(6) a process under which an appropriate Department 
of Defense official may intervene or terminate the funding 
of an information technology investment if the investment is 
at risk of not achieving major project milestones.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 131 of such title is amended by inserting 
after the item relating to section 2223 the following new item: 
‘‘2223a. Information technology acquisition planning and oversight requirements.’’. 
(b) ANNUAL REPORT TO CONGRESS.—Section 2445b(b) of title 
10, United States Code, is amended by adding at the end the 
following new paragraphs: 
‘‘(5) For each major automated information system program 
for which such information has not been provided in a previous 
annual report—
H. R. 6523—124 
‘‘(A) a description of the business case analysis (if 
any) that has been prepared for the program and key 
functional requirements for the program; 
‘‘(B) a description of the analysis of alternatives con-
ducted with regard to the program; 
‘‘(C) an assessment of the extent to which the program, 
or portions of the program, have technical requirements 
of sufficient clarity that the program, or portions of the 
program, may be feasibly procured under firm, fixed-price 
contracts; 
‘‘(D) the most recent independent cost estimate or cost 
analysis for the program provided by the Director of Cost 
Assessment and Program Evaluation in accordance with 
section 2334(a)(6) of this title; 
‘‘(E) a certification by a Department of Defense acquisi-
tion official with responsibility for the program that all 
technical and business requirements have been reviewed 
and validated to ensure alignment with the business case; 
and 
‘‘(F) an explanation of the basis for the certification 
described in subparagraph (E). 
‘‘(6) For each major automated information system program 
for which the information required under paragraph (5) has 
been provided in a previous annual report, a summary of any 
significant changes to the information previously provided.’’. 
SEC. 806. REQUIREMENTS FOR INFORMATION RELATING TO SUPPLY 
CHAIN RISK. 
(a) AUTHORITY.—Subject to subsection (b), the head of a covered 
agency may— 
(1) carry out a covered procurement action; and 
(2) limit, notwithstanding any other provision of law, in 
whole or in part, the disclosure of information relating to the 
basis for carrying out a covered procurement action. 
(b) DETERMINATION AND NOTIFICATION.—The head of a covered 
agency may exercise the authority provided in subsection (a) only 
after— 
(1) obtaining a joint recommendation by the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics 
and the Chief Information Officer of the Department of Defense, 
on the basis of a risk assessment by the Under Secretary 
of Defense for Intelligence, that there is a significant supply 
chain risk to a covered system; 
(2) making a determination in writing, in unclassified or 
classified form, with the concurrence of the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, that— 
(A) use of the authority in subsection (a)(1) is necessary 
to protect national security by reducing supply chain risk; 
(B) less intrusive measures are not reasonably avail-
able to reduce such supply chain risk; and 
(C) in a case where the head of the covered agency 
plans to limit disclosure of information under subsection 
(a)(2), the risk to national security due to the disclosure 
of such information outweighs the risk due to not disclosing 
such information; and
H. R. 6523—125 
(3) providing a classified or unclassified notice of the deter-
mination made under paragraph (2) to the appropriate congres-
sional committees, which notice shall include— 
(A) the information required by section 2304(f)(3) of 
title 10, United States Code; 
(B) the joint recommendation by the Under Secretary 
of Defense for Acquisition, Technology, and Logistics and 
the Chief Information Officer of the Department of Defense 
as specified in paragraph (1); 
(C) a summary of the risk assessment by the Under 
Secretary of Defense for Intelligence that serves as the 
basis for the joint recommendation specified in paragraph 
(1); and 
(D) a summary of the basis for the determination, 
including a discussion of less intrusive measures that were 
considered and why they were not reasonably available 
to reduce supply chain risk. 
(c) DELEGATION.—The head of a covered agency may not dele-
gate the authority provided in subsection (a) or the responsibility 
to make a determination under subsection (b) to an official below 
the level of the service acquisition executive for the agency con-
cerned. 
(d) LIMITATION ON DISCLOSURE.—If the head of a covered agency 
has exercised the authority provided in subsection (a)(2) to limit 
disclosure of information— 
(1) no action undertaken by the agency head under such 
authority shall be subject to review in a bid protest before 
the Government Accountability Office or in any Federal court; 
and 
(2) the agency head shall— 
(A) notify appropriate parties of a covered procurement 
action and the basis for such action only to the extent 
necessary to effectuate the covered procurement action; 
(B) notify other Department of Defense components 
or other Federal agencies responsible for procurements that 
may be subject to the same or similar supply chain risk, 
in a manner and to the extent consistent with the require-
ments of national security; and 
(C) ensure the confidentiality of any such notifications. 
(e) DEFINITIONS.—In this section: 
(1) HEAD OF A COVERED AGENCY.—The term ‘‘head of a 
covered agency’’ means each of the following: 
(A) The Secretary of Defense. 
(B) The Secretary of the Army. 
(C) The Secretary of the Navy. 
(D) The Secretary of the Air Force. 
(2) COVERED
PROCUREMENT
ACTION.—The term ‘‘covered 
procurement action’’ means any of the following actions, if 
the action takes place in the course of conducting a covered 
procurement: 
(A) The exclusion of a source that fails to meet quali-
fication standards established in accordance with the 
requirements of section 2319 of title 10, United States 
Code, for the purpose of reducing supply chain risk in 
the acquisition of covered systems. 
(B) The exclusion of a source that fails to achieve 
an acceptable rating with regard to an evaluation factor
H. R. 6523—126 
providing for the consideration of supply chain risk in 
the evaluation of proposals for the award of a contract 
or the issuance of a task or delivery order. 
(C) The decision to withhold consent for a contractor 
to subcontract with a particular source or to direct a con-
tractor for a covered system to exclude a particular source 
from consideration for a subcontract under the contract. 
(3) COVERED PROCUREMENT.—The term ‘‘covered procure-
ment’’ means— 
(A) a source selection for a covered system or a covered 
item of supply involving either a performance specification, 
as provided in section 2305(a)(1)(C)(ii) of title 10, United 
States Code, or an evaluation factor, as provided in section 
2305(a)(2)(A) of such title, relating to supply chain risk; 
(B) the consideration of proposals for and issuance 
of a task or delivery order for a covered system or a 
covered item of supply, as provided in section 2304c(d)(3) 
of title 10, United States Code, where the task or delivery 
order contract concerned includes a contract clause estab-
lishing a requirement relating to supply chain risk; or 
(C) any contract action involving a contract for a cov-
ered system or a covered item of supply where such contract 
includes a clause establishing requirements relating to 
supply chain risk. 
(4) SUPPLY
CHAIN
RISK.—The term ‘‘supply chain risk’’ 
means the risk that an adversary may sabotage, maliciously 
introduce unwanted function, or otherwise subvert the design, 
integrity, manufacturing, production, distribution, installation, 
operation, or maintenance of a covered system so as to surveil, 
deny, disrupt, or otherwise degrade the function, use, or oper-
ation of such system. 
(5) COVERED SYSTEM.—The term ‘‘covered system’’ means 
a national security system, as that term is defined in section 
3542(b) of title 44, United States Code. 
(6) COVERED ITEM OF SUPPLY.—The term ‘‘covered item 
of supply’’ means an item of information technology (as that 
term is defined in section 11101 of title 40, United States 
Code) that is purchased for inclusion in a covered system, 
and the loss of integrity of which could result in a supply 
chain risk for a covered system. 
(7) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 
‘‘appropriate congressional committees’’ means— 
(A) in the case of a covered system included in the 
National Intelligence Program or the Military Intelligence 
Program, the Select Committee on Intelligence of the 
Senate, the Permanent Select Committee on Intelligence 
of the House of Representatives, and the congressional 
defense committees; and 
(B) in the case of a covered system not otherwise 
included in subparagraph (A), the congressional defense 
committees. 
(f) EFFECTIVE DATE.—The requirements of this section shall 
take effect on the date that is 180 days after the date of the 
enactment of this Act and shall apply to— 
(1) contracts that are awarded on or after such date; and
H. R. 6523—127 
(2) task and delivery orders that are issued on or after 
such date pursuant to contracts that awarded before, on, or 
after such date. 
(g) SUNSET.—The authority provided in this section shall expire 
on the date that is three years after the date of the enactment 
of this Act. 
Subtitle B—Provisions Relating to Major 
Defense Acquisition Programs 
SEC. 811. COST ESTIMATES FOR PROGRAM BASELINES AND CONTRACT 
NEGOTIATIONS FOR MAJOR DEFENSE ACQUISITION AND 
MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS. 
Section 2334 of title 10, United States Code, is amended— 
(1) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘paragraph (2)’’ and inserting ‘‘para-
graph (3)’’; and 
(ii) by striking ‘‘, the rationale for selecting such 
confidence level, and, if such confidence level is less 
than 80 percent, the justification for selecting a con-
fidence level of less than 80 percent; and’’ and inserting 
‘‘and the rationale for selecting such confidence level;’’; 
(B) by redesignating paragraph (2) as paragraph (3); 
and 
(C) by inserting after paragraph (1) the following new 
paragraph (2): 
‘‘(2) ensure that such confidence level provides a high 
degree of confidence that the program can be completed without 
the need for significant adjustment to program budgets; and’’; 
(2) by redesignating subsections (e) and (f) as subsections 
(f) and (g), respectively; and 
(3) by inserting after subsection (d) the following new sub-
section (e): 
‘‘(e) ESTIMATES FOR PROGRAM BASELINE AND ANALYSES AND 
TARGETS FOR CONTRACT NEGOTIATION PURPOSES.—(1) The policies, 
procedures, and guidance issued by the Director of Cost Assessment 
and Program Evaluation in accordance with the requirements of 
subsection (a) shall provide that— 
‘‘(A) cost estimates developed for baseline descriptions and 
other program purposes conducted pursuant to subsection (a)(6) 
are not to be used for the purpose of contract negotiations 
or the obligation of funds; and 
‘‘(B) cost analyses and targets developed for the purpose 
of contract negotiations and the obligation of funds are based 
on the Government’s reasonable expectation of successful con-
tractor performance in accordance with the contractor’s proposal 
and previous experience. 
‘‘(2) The Program Manager and contracting officer for each 
major defense acquisition program and major automated informa-
tion system program shall ensure that cost analyses and targets 
developed for the purpose of contract negotiations and the obligation 
of funds are carried out in accordance with the requirements of 
paragraph (1) and the policies, procedures, and guidance issued 
by the Director of Cost Assessment and Program Evaluation.
H. R. 6523—128 
‘‘(3) Funds that are made available for a major defense acquisi-
tion program or major automated information system program in 
accordance with a cost estimate conducted pursuant to subsection 
(a)(6), but are excess to a cost analysis or target developed pursuant 
to paragraph (2), shall remain available for obligation in accordance 
with the terms of applicable authorization and appropriations Acts. 
‘‘(4) Funds described in paragraph (3)— 
‘‘(A) may be used— 
‘‘(i) to cover any increased program costs identified 
by a revised cost analysis or target developed pursuant 
to paragraph (2); 
‘‘(ii) to acquire additional end items in accordance with 
the requirements of section 2308 of this title; or 
‘‘(iii) to cover the cost of risk reduction and process 
improvements; and 
‘‘(B) may be reprogrammed, in accordance with established 
procedures, only if determined to be excess to program needs 
on the basis of a cost estimate developed with the concurrence 
of the Director of Cost Assessment and Program Evaluation.’’. 
SEC. 812. MANAGEMENT OF MANUFACTURING RISK IN MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) GUIDANCE REQUIRED.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
issue comprehensive guidance on the management of manufacturing 
risk in major defense acquisition programs. 
(b) ELEMENTS.—The guidance issued under subsection (a) shall, 
at a minimum— 
(1) require the use of manufacturing readiness levels as 
a basis for measuring, assessing, reporting, and communicating 
manufacturing readiness and risk on major defense acquisition 
programs throughout the Department of Defense; 
(2) provide guidance on the definition of manufacturing 
readiness levels and how manufacturing readiness levels should 
be used to assess manufacturing risk and readiness in major 
defense acquisition programs; 
(3) specify manufacturing readiness levels that should be 
achieved at key milestones and decision points for major defense 
acquisition programs; 
(4) identify tools and models that may be used to assess, 
manage, and reduce risks that are identified in the course 
of manufacturing readiness assessments for major defense 
acquisition programs; and 
(5) require appropriate consideration of the manufacturing 
readiness and manufacturing readiness processes of potential 
contractors and subcontractors as a part of the source selection 
process for major defense acquisition programs. 
(c) MANUFACTURING
READINESS
EXPERTISE.—The Secretary 
shall ensure that— 
(1) the acquisition workforce chapter of the annual strategic 
workforce plan required by section 115b of title 10, United 
States Code, includes an assessment of the critical manufac-
turing readiness knowledge and skills needed in the acquisition 
workforce and a plan of action for addressing any gaps in 
such knowledge and skills; and
H. R. 6523—129 
(2) the need of the Department for manufacturing readiness 
knowledge and skills is given appropriate consideration, com-
parable to the consideration given to other program manage-
ment functions, as the Department identifies areas of need 
for funding through the Defense Acquisition Workforce Develop-
ment Fund established in accordance with the requirements 
of section 1705 of title 10, United States Code. 
(d) MAJOR DEFENSE ACQUISITION PROGRAM DEFINED.—In this 
section, the term ‘‘major defense acquisition program’’ has the 
meaning given that term in section 2430(a) of title 10, United 
States Code. 
SEC. 813. MODIFICATION AND EXTENSION OF REQUIREMENTS OF THE 
WEAPON SYSTEM ACQUISITION REFORM ACT OF 2009. 
(a) EXTENSION OF REPORTING REQUIREMENTS.—Section 102(b) 
of the Weapon Systems Acquisition Reform Act of 2009 (Public 
Law 111–23; 123 Stat. 1714; 10 U.S.C. 2430 note) is amended— 
(1) in paragraph (2), by inserting ‘‘, and not later than 
February 15 of each year from 2011 through 2014’’ after ‘‘Not 
later than 180 days after the date of the enactment of this 
Act’’; and 
(2) in paragraph (3), by striking ‘‘The first annual report’’ 
and inserting ‘‘Each annual report from 2010 through 2014’’. 
(b) CLARIFICATION THAT PROTOTYPES MAY BE ACQUIRED FROM 
COMMERCIAL, GOVERNMENT, OR ACADEMIC SOURCES.—Paragraph 
(4) of section 203(a) of the Weapon Systems Acquisition Reform 
Act of 2009 (Public Law 111–23; 123 Stat. 1722; 10 U.S.C. 2430 
note) is amended to read as follows: 
‘‘(4) That prototypes— 
‘‘(A) may be required under paragraph (1) or (3) for 
the system to be acquired or, if prototyping of the system 
is not feasible, for critical subsystems of the system; and 
‘‘(B) may be acquired from commercial, government, 
or academic sources.’’. 
(c) CLARIFICATION THAT CERTIFICATIONS ARE NOT REQUIRED 
FOR MAJOR DEFENSE ACQUISITION PROGRAMS FOLLOWING MILE-
STONE C APPROVAL.—Section 204(c)(2) of the Weapon Systems 
Acquisition Reform Act of 2009 (123 Stat. 1724) is amended— 
(1) in subparagraph (A), by striking ‘‘; and’’ and inserting 
a semicolon; 
(2) in subparagraph (B), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new subparagraph: 
‘‘(C) has not yet achieved a Milestone C approval.’’. 
(d) CLARIFICATION THAT CERTAIN MILESTONE B CERTIFICATION 
CRITERIA MAY BE WAIVED.— 
(1) WAIVER AUTHORITY.—Effective as of May 22, 2009, sec-
tion 2366b(d) of title 10, United States Code, as amended 
by section 205(a)(1) of the Weapon Systems Acquisition Reform 
Act of 2009 (123 Stat. 1724), is amended— 
(A) in paragraph (1), by striking ‘‘specified in para-
graph (1) or (2) of subsection (a)’’ and inserting ‘‘specified 
in paragraph (1), (2), or (3) of subsection (a)’’; and 
(B) in paragraph (2), by striking ‘‘specified in para-
graphs (1) and (2) of subsection (a)’’ and inserting ‘‘specified 
in paragraphs (1), (2), and (3) of subsection (a)’’.
H. R. 6523—130 
(2) DETERMINATION REGARDING SATISFACTION OF CERTIFI-
CATION COMPONENTS.—Effective as of May 22, 2009, and as 
if included therein as enacted, section 205(b)(1) of the Weapon 
Systems Acquisition Reform Act of 2009 (10 U.S.C. 2366b note) 
is amended by striking ‘‘certification components specified in 
paragraphs (1) and (2) of subsection (a) of section 2366b of 
title 10, United States Code’’ and inserting ‘‘certification compo-
nents specified in paragraphs (1), (2), and (3) of subsection 
(a) of section 2366b of title 10, United States Code’’. 
(e) CORRECTION TO REFERENCE.—Effective as of May 22, 2009, 
and as if included therein as enacted, section 205(c) of the Weapon 
Systems Acquisition Reform Act of 2009 (10 U.S.C. 2433a note) 
is amended by striking ‘‘section 2433a(c)(3)’’ and inserting ‘‘section 
2433a(c)(1)(C)’’. 
SEC. 814. INCLUSION OF MAJOR SUBPROGRAMS TO MAJOR DEFENSE 
ACQUISITION PROGRAMS UNDER VARIOUS ACQUISITION- 
RELATED REQUIREMENTS. 
(a) REPORTING REQUIREMENTS.—Section 2430a(b) of title 10, 
United States Code, is amended— 
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively; 
(2) by inserting ‘‘(1)’’ before ‘‘If the Secretary’’; 
(3) in subparagraph (A), as so redesignated, by inserting 
‘‘(other than as provided in paragraph (2))’’ before the semicolon; 
and 
(4) by adding at the end the following new paragraph: 
‘‘(2) For a major defense acquisition program for which a des-
ignation of a major subprogram has been made under subsection 
(a), unit costs under this chapter shall be submitted in accordance 
with the definitions in subsection (d).’’. 
(b) MILESTONE A APPROVAL CERTIFICATION REQUIREMENTS.— 
Section 2366a of such title is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘a major defense 
acquisition program certified by the Milestone Decision 
Authority under subsection (a), if the projected cost of 
the program’’ and inserting ‘‘a major defense acquisition 
program certified by the Milestone Decision Authority 
under subsection (a) or a designated major subprogram 
of such program, if the projected cost of the program or 
subprogram’’; and 
(B) in paragraph (2), by inserting ‘‘or designated major 
subprogram’’ after ‘‘major defense acquisition program’’; 
and 
(2) in subsection (c)— 
(A) by redesignating paragraphs (2), (3), (4), and (5) 
as paragraphs (3), (4), (5), and (6), respectively; and 
(B) by inserting after paragraph (1) the following new 
paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ means a major 
subprogram of a major defense acquisition program designated 
under section 2430a(a)(1) of this title.’’. 
(c) MILESTONE B APPROVAL CERTIFICATION REQUIREMENTS.— 
Section 2366b of such title is amended— 
(1) in subsection (b)(1)—
H. R. 6523—131 
(A) by striking ‘‘any changes to the program’’ and 
inserting ‘‘any changes to the program or a designated 
major subprogram of such program’’; and 
(B) in subparagraph (B), by striking ‘‘otherwise cause 
the program’’ and inserting ‘‘otherwise cause the program 
or subprogram’’; and 
(2) in subsection (g)— 
(A) by redesignating paragraphs (2), (3), and (4) as 
paragraphs (3), (4), and (5), respectively; and 
(B) by inserting after paragraph (1) the following new 
paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ means a major 
subprogram of a major defense acquisition program designated 
under section 2430a(a)(1) of this title.’’. 
(d) CONFORMING AMENDMENTS TO SECTION 2399.—Subsection 
(a) of section 2399 of such title is amended to read as follows: 
‘‘(a) CONDITION FOR PROCEEDING BEYOND LOW-RATE INITIAL 
PRODUCTION.—(1) The Secretary of Defense shall provide that a 
covered major defense acquisition program or a covered designated 
major subprogram may not proceed beyond low-rate initial produc-
tion until initial operational test and evaluation of the program 
or subprogram is completed. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘covered major defense acquisition program’ 
means a major defense acquisition program that involves the 
acquisition of a weapon system that is a major system within 
the meaning of that term in section 2302(5) of this title. 
‘‘(B) The term ‘covered designated major subprogram’ 
means 
a 
major 
subprogram 
designated 
under 
section 
2430a(a)(1) of this title that is a major subprogram of a covered 
major defense acquisition program.’’. 
(e) CONFORMING
AMENDMENTS
TO
SECTION
2434.—Section 
2434(a) of such title is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of Defense’’; 
and 
(2) by adding at the end the following new paragraph: 
‘‘(2) The provisions of this section shall apply to any major 
subprogram of a major defense acquisition program (as designated 
under section 2430a(a)(1) of this title) in the same manner as 
those provisions apply to a major defense acquisition program, 
and any reference in this section to a program shall be treated 
as including such a subprogram.’’. 
Subtitle C—Amendments to General Con-
tracting Authorities, Procedures, and 
Limitations 
SEC. 821. PROVISIONS RELATING TO FIRE RESISTANT FIBER FOR 
PRODUCTION OF MILITARY UNIFORMS. 
(a) EXTENSION.—Section 829 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 229; 
10 U.S.C. 2533a note) is amended in subsection (f) by striking 
‘‘on the date that is five years after the date of the enactment 
of this Act’’ and inserting ‘‘on January 1, 2015’’.
H. R. 6523—132 
(b) PROHIBITION
ON
SPECIFICATION
IN
SOLICITATIONS.—No 
solicitation issued before January 1, 2015, by the Department of 
Defense may include a requirement that proposals submitted pursu-
ant to such solicitation must include the use of fire resistant rayon 
fiber. 
(c) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than March 15, 2011, the Comp-
troller General of the United States shall submit to the Commit-
tees on Armed Services of the Senate and the House of Rep-
resentatives a report on the supply chain for fire resistant 
fiber for the production of military uniforms. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include, at a minimum, an analysis of the following: 
(A) The current and anticipated sources of fire resistant 
rayon fiber for the production of military uniforms. 
(B) The extent to which fire resistant rayon fiber has 
unique properties that provide advantages for the produc-
tion of military uniforms. 
(C) The extent to which the efficient procurement of 
fire resistant rayon fiber for the production of military 
uniforms is impeded by existing statutory or regulatory 
requirements. 
(D) The actions the Department of Defense has taken 
to identify alternatives to fire resistant rayon fiber for 
the production of military uniforms. 
(E) The extent to which such alternatives provide an 
adequate substitute for fire resistant rayon fiber for the 
production of military uniforms. 
(F) The impediments to the use of such alternatives, 
and the actions the Department has taken to overcome 
such impediments. 
(G) The extent to which uncertainty regarding the 
future availability of fire resistant rayon fiber results in 
instability or inefficiency for elements of the United States 
textile industry that use fire resistant rayon fiber, and 
the extent to which that instability or inefficiency results 
in less efficient business practices, impedes investment and 
innovation, and thereby results or may result in higher 
costs, delayed delivery, or a lower quality of product deliv-
ered to the Government. 
(H) The extent to which any modifications to existing 
law or regulation may be necessary to ensure the efficient 
acquisition of fire resistant fiber or alternative fire resistant 
products for the production of military uniforms. 
SEC. 822. REPEAL OF REQUIREMENT FOR CERTAIN PROCUREMENTS 
FROM FIRMS IN THE SMALL ARMS PRODUCTION INDUS-
TRIAL BASE. 
(a) REPEAL.—Section 2473 of title 10, United States Code, is 
repealed. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 146 of such title is amended by striking the item 
relating to section 2473.
H. R. 6523—133 
SEC. 823. REVIEW OF REGULATORY DEFINITION RELATING TO 
PRODUCTION OF SPECIALTY METALS. 
(a) REVIEW REQUIRED.—The Secretary of Defense shall review 
the regulations specified in subsection (b) to ensure that the defini-
tion of the term ‘‘produce’’ in such regulations complies with the 
requirements of section 2533b of title 10, United States Code. 
In carrying out the review, the Secretary shall seek public comment, 
consider congressional intent, and revise the regulations as the 
Secretary considers necessary and appropriate. 
(b) REGULATIONS SPECIFIED.—The regulations referred to in 
subsection (a) are any portion of subpart 252.2 of the defense 
supplement to the Federal Acquisition Regulation that includes 
a definition of the term ‘‘produce’’ for purposes of implementing 
section 2533b of title 10, United States Code. 
(c) COMPLETION OF REVIEW.—The Secretary shall complete the 
review required by subsection (a) and any necessary and appropriate 
revisions to the defense supplement to the Federal Acquisition 
Regulation not later than 270 days after the date of the enactment 
of this Act. 
SEC. 824. GUIDANCE RELATING TO RIGHTS IN TECHNICAL DATA. 
(a) REVIEW OF GUIDANCE.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
review guidance issued by the military departments on the 
implementation of section 2320(e) of title 10, United States Code, 
to ensure that such guidance is consistent with the guidance issued 
by the Under Secretary of Defense for Acquisition, Technology, 
and Logistics and the requirements of this section. Such guidance 
shall be designed to ensure that the United States— 
(1) preserves the option of competition for contracts for 
the production and sustainment of systems or subsystems that 
are developed exclusively with Federal funds as defined in 
accordance with the amendments made by this section; and 
(2) is not required to pay more than once for the same 
technical data. 
(b) RIGHTS IN TECHNICAL DATA.—Section 2320(a) of title 10, 
United States Code, is amended— 
(1) in paragraph (2)(F)(i)— 
(A) by redesignating subclauses (I) and (II) as sub-
clauses (II) and (III), respectively; and 
(B) by inserting before subclause (II), as so redesig-
nated, the following new subclause (I): 
‘‘(I) rights in technical data described in subpara-
graph (A) for which a use or release restriction has 
been erroneously asserted by a contractor or subcon-
tractor;’’; and 
(2) in paragraph (3), by striking ‘‘for the purposes of defini-
tions under this paragraph’’ and inserting ‘‘for the purposes 
of paragraph (2)(B), but shall be considered to be Federal 
funds for the purposes of paragraph (2)(A)’’. 
(c) VALIDATION OF PROPRIETARY DATA RESTRICTIONS.—Section 
2321(d)(2) of title 10, United States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘A challenge’’ and 
inserting ‘‘Except as provided in subparagraph (C), a challenge’’; 
and 
(2) by adding at the end the following new subparagraph 
(C):
H. R. 6523—134 
‘‘(C) The limitation in this paragraph shall not apply to a 
case in which the Secretary finds that reasonable grounds exist 
to believe that a contractor or subcontractor has erroneously 
asserted a use or release restriction with regard to technical data 
described in section 2320(a)(2)(A) of this title.’’. 
SEC. 825. EXTENSION OF SUNSET DATE FOR CERTAIN PROTESTS OF 
TASK AND DELIVERY ORDER CONTRACTS. 
Paragraph (3) of section 2304c(e) of title 10, United States 
Code, is amended to read as follows: 
‘‘(3) Paragraph (1)(B) and paragraph (2) of this subsection shall 
not be in effect after September 30, 2016.’’. 
SEC. 826. INCLUSION OF OPTION AMOUNTS IN LIMITATIONS ON 
AUTHORITY OF THE DEPARTMENT OF DEFENSE TO CARRY 
OUT CERTAIN PROTOTYPE PROJECTS. 
Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (A), by inserting ‘‘(including all 
options)’’ after ‘‘not in excess of $100,000,000’’; and 
(B) in subparagraph (B), by inserting ‘‘(including all 
options)’’ after ‘‘in excess of $100,000,000’’; and 
(2) in subsection (e)(3)(A), by inserting ‘‘(including all 
options)’’ after ‘‘does not exceed $50,000,000’’. 
SEC. 827. PERMANENT AUTHORITY FOR DEFENSE ACQUISITION CHAL-
LENGE PROGRAM; PILOT EXPANSION OF PROGRAM. 
(a) PERMANENT AUTHORITY.—Section 2359b of title 10, United 
States Code, is amended— 
(1) by striking subsections (j) and (k); and 
(2) by redesignating subsection (l) as subsection (j). 
(b) PILOT PROGRAM.—Section 2359b of title 10, United States 
Code, as amended by subsection (a), is further amended by adding 
at the end the following new subsection (k): 
‘‘(k) PILOT PROGRAM
FOR PROGRAMS OTHER THAN MAJOR 
DEFENSE ACQUISITION PROGRAMS.— 
‘‘(1) IN
GENERAL.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall carry out a pilot 
program to expand the use of the authority provided in this 
section to provide opportunities for the introduction of innova-
tive and cost-saving approaches to programs other than major 
defense acquisition programs through the submission, review, 
and implementation, where appropriate, of qualifying proposals. 
‘‘(2) QUALIFYING
PROPOSALS.—For purposes of this sub-
section, a qualifying proposal is an offer to supply a nondevelop-
mental item that— 
‘‘(A) is evaluated as achieving a level of performance 
that is at least equal to the level of performance of an 
item being procured under a covered acquisition program 
and as providing savings in excess of 15 percent after 
considering all costs to the Government of implementing 
such proposal; or 
‘‘(B) is evaluated as achieving a level of performance 
that is significantly better than the level of performance 
of an item being procured under a covered acquisition 
program without any increase in cost to the Government.
H. R. 6523—135 
‘‘(3) REVIEW
PROCEDURES.—The Under Secretary shall 
adopt modifications as may be needed to the procedures 
applicable to the Challenge Program to provide for Department 
of Defense review of, and action on, qualifying proposals. Such 
procedures shall include, at a minimum, the issuance of a 
broad agency announcement inviting interested parties to 
submit qualifying proposals in areas of interest to the Depart-
ment. 
‘‘(4) DEFINITIONS.—In this subsection: 
‘‘(A) 
NONDEVELOPMENTAL
ITEM.—The 
term 
‘non-
developmental item’ has the meaning given that term in 
section 4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403). 
‘‘(B) COVERED ACQUISITION PROGRAM.—The term ‘cov-
ered acquisition program’ means any acquisition program 
of the Department of Defense other than a major defense 
acquisition program, but does not include any contract 
awarded under an exception to competitive acquisition 
authorized by the Small Business Act (15 U.S.C. 631 et 
seq.) 
‘‘(C) LEVEL
OF
PERFORMANCE.—The term ‘level of 
performance’, with respect to a nondevelopmental item, 
means the extent to which the item demonstrates required 
item functional characteristics. 
‘‘(5) SUNSET.—The authority to carry out the pilot program 
under this subsection shall terminate on the date that is five 
years after the date of the enactment of this Act.’’. 
SEC. 828. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) COMPETITION
REQUIREMENTS
FOR
TASK
OR
DELIVERY 
ORDERS UNDER ENERGY SAVINGS PERFORMANCE CONTRACTS.—Sec-
tion 801 of the National Energy Conservation Policy Act (42 U.S.C. 
8287) is amended by adding at the end the following: 
‘‘(c) TASK OR DELIVERY ORDERS.—(1) The head of a Federal 
agency may issue a task or delivery order under an energy savings 
performance contract by— 
‘‘(A) notifying all contractors that have received an award 
under such contract that the agency proposes to discuss energy 
savings performance services for some or all of its facilities 
and, following a reasonable period of time to provide a proposal 
in response to the notice, soliciting from such contractors the 
submission of expressions of interest in, and contractor quali-
fications for, performing site surveys or investigations and feasi-
bility designs and studies, and including in the notice summary 
information concerning energy use for any facilities that the 
agency has specific interest in including in such task or delivery 
order; 
‘‘(B) reviewing all expressions of interest and qualifications 
submitted pursuant to the notice under subparagraph (A); 
‘‘(C) selecting two or more contractors (from among those 
reviewed under subparagraph (B)) to conduct discussions con-
cerning the contractors’ respective qualifications to implement 
potential energy conservation measures, including— 
‘‘(i) requesting references and specific detailed exam-
ples with respect to similar efforts and the resulting energy 
savings of such similar efforts; and
H. R. 6523—136 
‘‘(ii) requesting an explanation of how such similar 
efforts relate to the scope and content of the task or delivery 
order concerned; 
‘‘(D) selecting and authorizing— 
‘‘(i) more than one contractor (from among those 
selected under subparagraph (C)) to conduct site surveys, 
investigations, feasibility designs and studies, or similar 
assessments for the energy savings performance contract 
services (or for discrete portions of such services), for the 
purpose of allowing each such contractor to submit a firm, 
fixed-price proposal to implement specific energy conserva-
tion measures; or 
‘‘(ii) one contractor (from among those selected under 
subparagraph (C)) to conduct a site survey, investigation, 
feasibility design and study, or similar assessment for the 
purpose of allowing the contractor to submit a firm, fixed- 
price proposal to implement specific energy conservation 
measures; 
‘‘(E) providing a debriefing to any contractor not selected 
under subparagraph (D); 
‘‘(F) negotiating a task or delivery order for energy savings 
performance contracting services with the contractor or contrac-
tors selected under subparagraph (D) based on the energy 
conservation measures identified; and 
‘‘(G) issuing a task or delivery order for energy savings 
performance contracting services to such contractor or contrac-
tors. 
‘‘(2) The issuance of a task or delivery order for energy savings 
performance contracting services pursuant to paragraph (1) is 
deemed to satisfy the task and delivery order competition require-
ments in section 2304c(d) of title 10, United States Code, and 
section 303J(d) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253j(d)). 
‘‘(3) The Secretary may issue guidance as necessary to agencies 
issuing task or delivery orders pursuant to paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
is inapplicable to task or delivery orders issued before the date 
of enactment of this Act. 
SEC. 829. DEFINITION OF MATERIALS CRITICAL TO NATIONAL SECU-
RITY. 
(a) DEFINITIONS.—Section 187 of title 10, United States Code, 
is amended by adding at the end the following new subsection: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘materials critical to national security’ means 
materials— 
‘‘(A) upon which the production or sustainment of mili-
tary equipment is dependent; and 
‘‘(B) the supply of which could be restricted by actions 
or events outside the control of the Government of the 
United States. 
‘‘(2) The term ‘military equipment’ means equipment used 
directly by the armed forces to carry out military operations. 
‘‘(3) The term ‘secure supply’, with respect to a material, 
means the availability of a source or sources for the material, 
including the full supply chain for the material and components 
containing the material.’’.
H. R. 6523—137 
(b) AMENDMENT RELATING TO DUTIES.—Subsection (b) of section 
187 of such title is amended to read as follows: 
‘‘(b) DUTIES.—In addition to other matters assigned to it by 
the Secretary of Defense, the Board shall— 
‘‘(1) determine the need to provide a long term secure 
supply of materials designated as critical to national security 
to ensure that national defense needs are met; 
‘‘(2) analyze the risk associated with each material des-
ignated as critical to national security and the effect on national 
defense that the nonavailability of such material would have; 
‘‘(3) recommend a strategy to the President to ensure a 
secure supply of materials designated as critical to national 
security; 
‘‘(4) recommend such other strategies to the President as 
the Board considers appropriate to strengthen the industrial 
base with respect to materials critical to national security; 
and 
‘‘(5) publish not less frequently than once every two years 
in the Federal Register recommendations regarding materials 
critical to national security, including a list of specialty metals, 
if any, recommended for addition to, or removal from, the 
definition of ‘specialty metal’ for purposes of section 2533b 
of this title.’’. 
Subtitle D—Contractor Matters 
SEC. 831. OVERSIGHT AND ACCOUNTABILITY OF CONTRACTORS PER-
FORMING PRIVATE SECURITY FUNCTIONS IN AREAS OF 
COMBAT OPERATIONS. 
(a) ENHANCEMENT OF OVERSIGHT AND ACCOUNTABILITY.—Sec-
tion 862 of the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 10 U.S.C. 2302 note) is amended— 
(1) in subsection (b)(2)— 
(A) in subparagraph (A), by striking ‘‘comply with regu-
lations’’ and inserting ‘‘ensure that the contractor and all 
employees of the contractor or any subcontractor who are 
responsible for performing private security functions under 
such contract comply with regulations’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘comply with’’ and all that follows 
through ‘‘in accordance with’’ and inserting ‘‘ensure 
that the contractor and all employees of the contractor 
or any subcontractor who are responsible for per-
forming private security functions under such contract 
comply with’’; and 
(ii) 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 subpara-
graph: 
‘‘(D) ensure that the contract clause is included in 
subcontracts awarded to any subcontractor at any tier who 
is responsible for performing private security functions 
under the contract.’’; 
(2) by redesignating subsections (c) and (d) as subsections 
(f) and (g), respectively; and
H. R. 6523—138 
(3) by inserting after subsection (b) the following new sub-
sections: 
‘‘(c) OVERSIGHT.—It shall be the responsibility of the head of 
the contracting activity responsible for each covered contract to 
ensure that the contracting activity takes appropriate steps to 
assign sufficient oversight personnel to the contract to— 
‘‘(1) ensure that the contractor responsible for performing 
private security functions under such contract comply with 
the regulatory requirements prescribed pursuant to subsection 
(a) and the contract requirements established pursuant to sub-
section (b); and 
‘‘(2) make the determinations required by subsection (d). 
‘‘(d) REMEDIES.—The failure of a contractor under a covered 
contract to comply with the requirements of the regulations pre-
scribed under subsection (a) or the contract clause inserted in 
a covered contract pursuant to subsection (b), as determined by 
the contracting officer for the covered contract— 
‘‘(1) shall be included in appropriate databases of past 
performance and considered in any responsibility determination 
or evaluation of the past performance of the contractor for 
the purpose of a contract award decision, as provided in section 
6(j) of the Office of Federal Procurement Policy Act (41 U.S.C. 
405(j)); 
‘‘(2) in the case of an award fee contract— 
‘‘(A) shall be considered in any evaluation of contract 
performance by the contractor for the relevant award fee 
period; and 
‘‘(B) may be a basis for reducing or denying award 
fees for such period, or for recovering all or part of award 
fees previously paid for such period; and 
‘‘(3) in the case of a failure to comply that is severe, 
prolonged, or repeated— 
‘‘(A) shall be referred to the suspension or debarment 
official for the appropriate agency; and 
‘‘(B) may be a basis for suspension or debarment of 
the contractor. 
‘‘(e) RULE OF CONSTRUCTION.—The duty of a contractor under 
a covered contract to comply with the requirements of the regula-
tions prescribed under subsection (a) and the contract clause 
inserted into a covered contract pursuant to subsection (b), and 
the availability of the remedies provided in subsection (d), shall 
not be reduced or diminished by the failure of a higher or lower 
tier contractor under such contract to comply with such require-
ments, or by a failure of the contracting activity to provide the 
oversight required by subsection (c).’’. 
(b) REVISED REGULATIONS AND CONTRACT CLAUSE.— 
(1) DEADLINE FOR REGULATIONS.—Not later than 60 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall revise the regulations prescribed pursuant 
to section 862 of the National Defense Authorization Act for 
Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2302 note) 
to incorporate the requirements of the amendments made by 
subsection (a). 
(2) COMMENCEMENT OF APPLICABILITY OF REVISIONS.—The 
revision of regulations under paragraph (1) shall apply to the 
following:
H. R. 6523—139 
(A) Any contract that is awarded on or after the date 
that is 120 days after the date of the enactment of this 
Act. 
(B) Any task or delivery order that is issued on or 
after the date that is 120 days after the date of the enact-
ment of this Act pursuant to a contract that is awarded 
before, on, or after the date that is 120 days after the 
date of the enactment of this Act. 
(3) COMMENCEMENT OF INCLUSION OF CONTRACT CLAUSE.— 
A contract clause that reflects the revision of regulations 
required by the amendments made by subsection (a) shall be 
inserted, as required by such section 862, into the following: 
(A) Any contract described in paragraph (2)(A). 
(B) Any task or delivery order described in paragraph 
(2)(B). 
SEC. 832. EXTENSION OF REGULATIONS ON CONTRACTORS PER-
FORMING PRIVATE SECURITY FUNCTIONS TO AREAS OF 
OTHER SIGNIFICANT MILITARY OPERATIONS. 
(a) AREAS OF OTHER SIGNIFICANT MILITARY OPERATIONS.—Sec-
tion 862 of the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 10 U.S.C. 2302 note), as amended by 
section 831, is further amended— 
(1) by striking ‘‘combat operations’’ each place it appears 
and inserting ‘‘combat operations or other significant military 
operations’’; and 
(2) in subsection (f), as redesignated by such section 831— 
(A) by redesignating paragraphs (2), (3), and (4) as 
paragraphs (3), (4), and (5), respectively; 
(B) in paragraph (1)— 
(i) by inserting ‘‘either’’ after ‘‘constituting’’; and 
(ii) by adding at the end the following: ‘‘In making 
designations under this paragraph, the Secretary shall 
ensure that an area is not designated in whole or 
part as both an area of combat operations and an 
area of other significant military operations.’’; and 
(C) by inserting after paragraph (1) the following new 
paragraph (2): 
‘‘(2) OTHER SIGNIFICANT MILITARY OPERATIONS.—For pur-
poses of this section, the term ‘other significant military oper-
ations’ means activities, other than combat operations, as part 
of an overseas contingency operation that are carried out by 
United States Armed Forces in an uncontrolled or unpredictable 
high-threat environment where personnel performing security 
functions may be called upon to use deadly force.’’. 
(b) ADDITIONAL AREAS CONSIDERED FOR DESIGNATION.— 
(1) DETERMINATION
REQUIRED
FOR
CERTAIN
AREAS.—Not 
later than 150 days after the date of the enactment of this 
Act, the Secretary of Defense shall make a written determina-
tion for each of the following areas regarding whether or not 
the area constitutes an area of combat operations or an area 
of other significant military operations for purposes of designa-
tion as such an area under section 862 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110–181; 
10 U.S.C. 2302 note), as amended by this section: 
(A) The Horn of Africa region. 
(B) Yemen.
H. R. 6523—140 
(C) The Philippines. 
(2) SUBMISSION TO CONGRESS.—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 copy of each written determination under paragraph (1), 
together with an explanation of the basis for such determina-
tion. 
(c) LIMITATION AND EXCEPTION.—Section 862 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public Law 110– 
181; 10 U.S.C. 2302 note), as amended by subsection (a) and by 
section 831, is further amended— 
(1) by redesignating subsection (g), as redesignated by such 
section 831, as subsection (h) and inserting after subsection 
(f) the following new subsection (g): 
‘‘(g) LIMITATION.—With respect to an area of other significant 
military operations, the requirements of this section shall apply 
only upon agreement of the Secretary of Defense and the Secretary 
of State. An agreement of the Secretaries under this subsection 
may be made only on an area-by-area basis. With respect to an 
area of combat operations, the requirements of this section shall 
always apply.’’; and 
(2) in subsection (h), as so redesignated— 
(A) by striking the subsection designation and ‘‘EXCEP-
TION.—’’ and inserting the following: 
‘‘(h) EXCEPTIONS.— 
‘‘(1) INTELLIGENCE ACTIVITIES.—’’; and 
(B) by adding at the end the following new paragraph: 
‘‘(2) NONGOVERNMENTAL
ORGANIZATIONS.—The require-
ments of this section shall not apply to a nonprofit nongovern-
mental organization receiving grants or cooperative agreements 
for activities conducted within an area of other significant 
military operations if the Secretary of Defense and the Sec-
retary of State agree that such organization may be exempted. 
An exemption may be granted by the agreement of the Secre-
taries under this paragraph on an organization-by-organization 
or area-by-area basis. Such an exemption may not be granted 
with respect to an area of combat operations.’’. 
(d) REPORT
ON IMPLEMENTATION.—Not later than 180 days 
after a designation of an area as an area of combat operations 
or an area of other significant military operations pursuant to 
subsection (b)(2), the Secretary of Defense, in coordination with 
the Secretary of State, shall submit to Congress a report on steps 
taken or planned to be taken to implement the regulations pre-
scribed under section 862 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2302 
note) in such area. In the case of any agreement by the Secretaries 
to limit the applicability of such section or exempt nongovernmental 
organizations from such section, pursuant to subsections (g) or 
(h)(1) of such section (as added by subsection (c)), the report shall 
document the basis for such agreement. 
SEC. 833. STANDARDS AND CERTIFICATION FOR PRIVATE SECURITY 
CONTRACTORS. 
(a) REVIEW OF THIRD-PARTY STANDARDS AND CERTIFICATION 
PROCESSES.—Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall— 
(1) determine whether the private sector has developed—
H. R. 6523—141 
(A) operational and business practice standards 
applicable to private security contractors; and 
(B) third-party certification processes for determining 
whether private security contractors adhere to standards 
described in subparagraph (A); and 
(2) review any standards and processes identified pursuant 
to paragraph (1) to determine whether the application of such 
standards and processes will make a substantial contribution 
to the successful performance of private security functions in 
areas of combat operations or other significant military oper-
ations. 
(b) REVISED REGULATIONS.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
revise the regulations promulgated under section 862 of the 
National Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110–181; 10 U.S.C. 2302 note) to ensure that such regula-
tions— 
(1) establish criteria for defining standard practices for 
the performance of private security functions, which shall 
reflect input from industry representatives as well as the 
Inspector General of the Department of Defense; and 
(2) establish criteria for weapons training programs for 
contractors performing private security functions, including 
minimum requirements for weapons training programs of 
instruction and minimum qualifications for instructors for such 
programs. 
(c) INCLUSION OF THIRD-PARTY STANDARDS AND CERTIFICATIONS 
IN REVISED REGULATIONS.— 
(1) STANDARDS.—If the Secretary determines that the 
application of operational and business practice standards 
identified pursuant to subsection (a)(1)(A) will make a substan-
tial contribution to the successful performance of private secu-
rity functions in areas of combat operations or other significant 
military operations, the revised regulations promulgated pursu-
ant to subsection (b) shall incorporate a requirement to comply 
with such standards, subject to such exceptions as the Secretary 
may determine to be necessary. 
(2) CERTIFICATIONS.—If the Secretary determines that the 
application of a third-party certification process identified 
pursuant to subsection (a)(1)(B) will make a substantial con-
tribution to the successful performance of private security func-
tions in areas of combat operations or other significant military 
operations, the revised regulations promulgated pursuant to 
subsection (b) may provide for the consideration of such certifi-
cations as a factor in the evaluation of proposals for award 
of a covered contract for the provision of private security func-
tions, subject to such exceptions as the Secretary may determine 
to be necessary. 
(d) DEFINITIONS.—In this section: 
(1) COVERED
CONTRACT.—The term ‘‘covered contract’’ 
means— 
(A) a contract of the Department of Defense for the 
performance of services; 
(B) a subcontract at any tier under such a contract; 
or 
(C) a task order or delivery order issued under such 
a contract or subcontract.
H. R. 6523—142 
(2) CONTRACTOR.—The term ‘‘contractor’’ means, with 
respect to a covered contract, the contractor or subcontractor 
carrying out the covered contract. 
(3) PRIVATE SECURITY FUNCTIONS.—The term ‘‘private secu-
rity functions’’ means activities engaged in by a contractor 
under a covered contract as follows: 
(A) Guarding of personnel, facilities, or property of 
a Federal agency, the contractor or subcontractor, or a 
third party. 
(B) Any other activity for which personnel are required 
to carry weapons in the performance of their duties. 
(e) EXCEPTION.—The requirements of this section shall not 
apply to contracts entered into by elements of the intelligence 
community in support of intelligence activities. 
SEC. 834. ENHANCEMENTS OF AUTHORITY OF SECRETARY OF DEFENSE 
TO REDUCE OR DENY AWARD FEES TO COMPANIES FOUND 
TO JEOPARDIZE THE HEALTH OR SAFETY OF GOVERN-
MENT PERSONNEL. 
(a) EXPANSION OF DISPOSITIONS SUBJECT TO AUTHORITY.—Sec-
tion 823 of the National Defense Authorization Act for Fiscal Year 
2010 (Public Law 111–84; 123 Stat. 2412; 10 U.S.C. 2302 note) 
is amended— 
(1) in subsection (c), by adding at the end the following 
new paragraph: 
‘‘(5) In an administrative proceeding, a final determination 
of contractor fault by the Secretary of Defense pursuant to 
subsection (d).’’; 
(2) by redesignating subsections (d) and (e) as subsections 
(e) and (f), respectively; and 
(3) by inserting after subsection (c) the following new sub-
section (d): 
‘‘(d) DETERMINATIONS OF CONTRACTOR FAULT BY SECRETARY 
OF DEFENSE.— 
‘‘(1) IN GENERAL.—In any case described by paragraph (2), 
the Secretary of Defense shall— 
‘‘(A) provide for an expeditious independent investiga-
tion of the causes of the serious bodily injury or death 
alleged to have been caused by the contractor as described 
in that paragraph; and 
‘‘(B) make a final determination, pursuant to proce-
dures established by the Secretary for purposes of this 
subsection, whether the contractor, in the performance of 
a covered contract, caused such serious bodily injury or 
death through gross negligence or with reckless disregard 
for the safety of civilian or military personnel of the Govern-
ment. 
‘‘(2) COVERED CASES.—A case described in this paragraph 
is any case in which the Secretary has reason to believe that— 
‘‘(A) a contractor, in the performance of a covered con-
tract, may have caused the serious bodily injury or death 
of any civilian or military personnel of the Government; 
and 
‘‘(B) such contractor is not subject to the jurisdiction 
of United States courts. 
‘‘(3) CONSTRUCTION OF DETERMINATION.—A final determina-
tion under this subsection may be used only for the purpose
H. R. 6523—143 
of evaluating contractor performance, and shall not be deter-
minative of fault for any other purpose.’’. 
(b) DEFINITION OF CONTRACTOR.—Paragraph (1) of subsection 
(e) of such section, as redesignated by subsection (a)(2) of this 
section, is amended to read as follows: 
‘‘(1) The term ‘contractor’ means a company awarded a 
covered contract and a subcontractor at any tier under such 
contract.’’. 
(c) TECHNICAL AMENDMENT.—Subsection (c) of such section is 
further amended in the matter preceding paragraph (1) by striking 
‘‘subsection (a)’’ and inserting ‘‘subsection (b)’’. 
(d) INCLUSION OF DETERMINATIONS OF CONTRACTOR FAULT IN 
DATABASE FOR FEDERAL AGENCY CONTRACT AND GRANT OFFICERS 
AND SUSPENSION AND DEBARMENT OFFICIALS.—Section 872(c)(1) of 
the Duncan Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110–417; 122 Stat. 4556) is amended by 
adding at the end the following new subparagraph: 
‘‘(E) In an administrative proceeding, a final deter-
mination of contractor fault by the Secretary of Defense 
pursuant to section 823(d) of the National Defense 
Authorization Act for Fiscal Year 2010 (10 U.S.C. 2302 
note).’’. 
(e) EFFECTIVE DATE.—The requirements of section 823 of the 
National Defense Authorization Act for Fiscal Year 2010, as 
amended by subsections (a) through (c), shall apply with respect 
to the following: 
(1) Any contract entered into on or after the date of the 
enactment of this Act. 
(2) Any task order or delivery order issued on or after 
the date of the enactment of this Act under a contract entered 
into before, on, or after that date. 
SEC. 835. ANNUAL JOINT REPORT AND COMPTROLLER GENERAL 
REVIEW ON CONTRACTING IN IRAQ AND AFGHANISTAN. 
Section 863 of the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 10 U.S.C. 2302 note) is amended 
to read as follows: 
‘‘SEC. 863. ANNUAL JOINT REPORT AND COMPTROLLER GENERAL 
REVIEW ON CONTRACTING IN IRAQ AND AFGHANISTAN. 
‘‘(a) JOINT REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (6), 
every 12 months, the Secretary of Defense, the Secretary of 
State, and the Administrator of the United States Agency for 
International Development shall submit to the relevant commit-
tees of Congress a joint report on contracts in Iraq or Afghani-
stan. 
‘‘(2) PRIMARY MATTERS COVERED.—A report under this sub-
section shall, at a minimum, cover the following with respect 
to contracts in Iraq and Afghanistan during the reporting 
period: 
‘‘(A) Total number of contracts awarded. 
‘‘(B) Total number of active contracts. 
‘‘(C) Total value of all contracts awarded. 
‘‘(D) Total value of active contracts. 
‘‘(E) The extent to which such contracts have used 
competitive procedures.
H. R. 6523—144 
‘‘(F) Total number of contractor personnel working on 
contracts at the end of each quarter of the reporting period. 
‘‘(G) Total number of contractor personnel who are 
performing security functions at the end of each quarter 
of the reporting period. 
‘‘(H) Total number of contractor personnel killed or 
wounded. 
‘‘(3) ADDITIONAL MATTERS COVERED.—A report under this 
subsection shall also cover the following: 
‘‘(A) The sources of information and data used to com-
pile the information required under paragraph (2). 
‘‘(B) A description of any known limitations of the 
data reported under paragraph (2), including known limita-
tions of the methodology and data sources used to compile 
the report. 
‘‘(C) Any plans for strengthening collection, coordina-
tion, and sharing of information on contracts in Iraq and 
Afghanistan through improvements to the common data-
bases identified under section 861(b)(4). 
‘‘(4) REPORTING PERIOD.—A report under this subsection 
shall cover a period of not less than 12 months. 
‘‘(5) SUBMISSION
OF
REPORTS.—The Secretaries and the 
Administrator shall submit an initial report under this sub-
section not later than February 1, 2011, and shall submit 
an updated report by February 1 of every year thereafter until 
February 1, 2013. 
‘‘(6) EXCEPTION.—If the total annual amount of obligations 
for contracts in Iraq and Afghanistan combined is less than 
$250,000,000 for the reporting period, for all three agencies 
combined, the Secretaries and the Administrator may submit, 
in lieu of a report, a letter stating the applicability of this 
paragraph, with such documentation as the Secretaries and 
the Administrator consider appropriate. 
‘‘(7) ESTIMATES.—In determining the total number of con-
tractor personnel working on contracts under paragraph (2)(F), 
the Secretaries and the Administrator may use estimates for 
any category of contractor personnel for which they determine 
it is not feasible to provide an actual count. The report shall 
fully disclose the extent to which estimates are used in lieu 
of an actual count. 
‘‘(b) COMPTROLLER GENERAL REVIEW AND REPORT.— 
‘‘(1) IN
GENERAL.—Within 180 days after submission of 
each annual joint report required under subsection (a), but 
in no case later than August 5 of each year until 2013, the 
Comptroller General of the United States shall review the 
joint report and submit to the relevant committees of Congress 
a report on such review. 
‘‘(2) MATTERS COVERED.—A report under this subsection 
shall, at minimum— 
‘‘(A) assess the data and data sources used in devel-
oping the joint report; 
‘‘(B) review how the Department of Defense, the 
Department of State, and the United States Agency for 
International Development are using the data and the data 
sources used to develop the joint report in managing, over-
seeing, and coordinating contracting in Iraq and Afghani-
stan;
H. R. 6523—145 
‘‘(C) assess the plans of the departments and agency 
for strengthening or improving the common databases 
identified under section 861(b)(4); and 
‘‘(D) review and make recommendations on any specific 
contract or class of contracts that the Comptroller General 
determines raises issues of significant concern. 
‘‘(3) ACCESS TO DATABASES AND OTHER INFORMATION.—The 
Secretary of Defense, the Secretary of State, and the Adminis-
trator of the United States Agency for International Develop-
ment shall provide to the Comptroller General full access to 
information on contracts in Iraq and Afghanistan for the pur-
poses of the review carried out under this subsection, including 
the common databases identified under section 861(b)(4).’’. 
Subtitle E—Other Matters 
SEC. 841. IMPROVEMENTS TO STRUCTURE AND FUNCTIONING OF 
JOINT REQUIREMENTS OVERSIGHT COUNCIL. 
(a) VICE CHAIRMAN OF JOINT CHIEFS OF STAFF TO BE CHAIRMAN 
OF COUNCIL.—Subsection (c) of section 181 of title 10, United States 
Code, is amended— 
(1) in paragraph (1), by inserting ‘‘Vice’’ before ‘‘Chairman 
of the Joint Chiefs of Staff’’; 
(2) in paragraph (2), by striking ‘‘, other than the Chairman 
of the Joint Chiefs of Staff,’’ and inserting ‘‘under subpara-
graphs (B), (C), (D), and (E) of paragraph (1)’’; and 
(3) by striking paragraph (3). 
(b) ROLE OF COMMANDERS OF COMBATANT COMMANDS AS MEM-
BERS OF COUNCIL.—Paragraph (1) of subsection (c) of such section 
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 subparagraph: 
‘‘(F) in addition, when directed by the chairman, the com-
mander of any combatant command (or, as directed by that 
commander, the deputy commander of that command) when 
matters related to the area of responsibility or functions of 
that command will be under consideration by the Council.’’. 
(c) CIVILIAN ADVISORS.— 
(1) ADDITIONAL CIVILIAN ADVISORS.—Subsection (d) of such 
section is amended by striking ‘‘The Under Secretary’’ and 
all that follows through ‘‘and expertise.’’ and inserting: ‘‘The 
following officials of the Department of Defense shall serve 
as advisors to the Council on matters within their authority 
and expertise: 
‘‘(A) The Under Secretary of Defense for Acquisition, 
Technology, and Logistics. 
‘‘(B) The Under Secretary of Defense (Comptroller). 
‘‘(C) The Under Secretary of Defense for Policy. 
‘‘(D) The Director of Cost Assessment and Program 
Evaluation. 
‘‘(E) The Director of Operational Test and Evaluation. 
‘‘(F) Such other civilian officials of the Department 
of Defense as are designated by the Secretary of Defense 
for purposes of this subsection.’’.
H. R. 6523—146 
(2) CONFORMING AMENDMENT.—Subsection (b)(3) of such 
section is amended by striking ‘‘Under Secretary of Defense 
(Comptroller), the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, and the Director of Cost Assessment 
and Performance Evaluation’’ and inserting ‘‘advisors to the 
Council under subsection (d)’’. 
(d) RECOGNITION OF PERMANENT NATURE OF COUNCIL.—Sub-
section (a) of such section is amended by striking ‘‘The Secretary 
of Defense shall establish’’ and inserting ‘‘There is’’. 
SEC. 842. DEPARTMENT OF DEFENSE POLICY ON ACQUISITION AND 
PERFORMANCE OF SUSTAINABLE PRODUCTS AND SERV-
ICES. 
(a) FINDING.—Congress finds the following: 
(1) Executive Order No. 13514, dated October 5, 2009, 
requires the departments and agencies of the Federal Govern-
ment to establish an integrated strategy towards the procure-
ment of sustainable products and services. 
(2) The Department of Defense Strategic Sustainability 
Performance Plan, issued in August 2010, provides a framework 
for the Department’s compliance with Executive Order No. 
13514 and other applicable sustainability requirements. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on 
the status of the achievement by the Department of Defense 
of the objectives and goals on the procurement of sustainable 
products and services established by section 2(h) of Executive 
Order No. 13514. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include the following: 
(A) A description of the actions taken, and to be taken, 
by the Department to identify particular sustainable prod-
ucts and services that contribute to the achievement of 
the objectives and goals described in paragraph (1). 
(B) An assessment of the tools available to the Depart-
ment to promote the use of particular sustainable products 
and services identified pursuant to the actions described 
in subparagraph (A) across the Department, and a descrip-
tion of the actions taken, and to be taken, by the Depart-
ment to use such tools. 
(C) A description of strategies and tools identified by 
the Department that could assist the other departments 
and agencies of the Federal Government in procuring 
sustainable products and services, including a description 
of mechanisms for sharing best practices in such procure-
ment, as identified by the Department, among the other 
departments and agencies of the Federal Government. 
(D) An assessment of the progress the Department 
has made toward the achievement of the objectives and 
goals described in paragraph (1), including the scorecard 
identified in its Strategic Sustainability Performance Plan. 
SEC. 843. ASSESSMENT AND PLAN FOR CRITICAL RARE EARTH MATE-
RIALS IN DEFENSE APPLICATIONS. 
(a) ASSESSMENT REQUIRED.—
H. R. 6523—147 
(1) IN GENERAL.—The Secretary of Defense shall undertake 
an assessment of the supply and demand for rare earth mate-
rials in defense applications and identify which, if any, rare 
earth material meets both of the following criteria: 
(A) The rare earth material is critical to the production, 
sustainment, or operation of significant United States mili-
tary equipment. 
(B) The rare earth material is subject to interruption 
of supply, based on actions or events outside the control 
of the Government of the United States. 
(2) EVALUATION OF SUPPLY.—The assessment shall include 
a comprehensive evaluation of the long-term security and avail-
ability of all aspects of the supply chain for rare earth materials 
in defense applications, particularly the location and number 
of sources at each step of the supply chain, including— 
(A) mining of rare earth ores; 
(B) separation of rare earth oxides; 
(C) refining and reduction of rare earth metals; 
(D) creation of rare earth alloys; 
(E) manufacturing of components and systems con-
taining rare earth materials; and 
(F) recycling of components and systems to reclaim 
and reuse rare earth materials. 
(3) EVALUATION OF DEMAND.—The assessment shall include 
a comprehensive evaluation of the demand for and usage of 
rare earth materials in all defense applications, including— 
(A) approximations of the total amounts of individual 
rare earth materials used in defense applications; 
(B) determinations of which, if any, defense applica-
tions are dependent upon rare earth materials for proper 
operation and functioning; and 
(C) assessments of the feasibility of alternatives to 
usage of rare earth materials in defense applications. 
(4) OTHER STUDIES AND AGENCIES.—Any applicable studies 
conducted by the Department of Defense, the Comptroller Gen-
eral of the United States, or other Federal agencies during 
fiscal year 2010 may be considered as partial fulfillment of 
the requirements of this section. The Secretary may consider 
the views of other Federal agencies, as appropriate. 
(5) SPECIFIC MATERIAL INCLUDED.—At a minimum, the Sec-
retary shall identify sintered neodymium iron boron magnets 
as meeting the criteria specified in paragraph (1). 
(b) PLAN.—For each rare earth material identified pursuant 
to subsection (a)(1), the Secretary shall develop a plan to ensure 
the long-term availability of such rare earth material, with a goal 
of establishing an assured source of supply of such material in 
critical defense applications by December 31, 2015. In developing 
the plan, the Secretary shall consider all aspects of the material’s 
supply chain, as described in subsection (a)(2). The plan shall 
include consideration of numerous risk mitigation methods with 
respect to the material, including— 
(1) an assessment of including the material in the National 
Defense Stockpile; 
(2) in consultation with the United States Trade Represent-
ative, the identification of any trade practices known to the 
Secretary that limit the Secretary’s ability to ensure the long- 
term availability of such material or the ability to meet the
H. R. 6523—148 
goal of establishing an assured source of supply of such material 
by December 31, 2015; 
(3) an assessment of the availability of financing to 
industry, academic institutions, or not-for-profit entities to pro-
vide the capacity required to ensure the availability of the 
material, as well as potential mechanisms to increase the avail-
ability of such financing; 
(4) an assessment of the benefits, if any, of Defense Produc-
tion Act funding to support the establishment of an assured 
source of supply for military components; 
(5) an assessment of funding for research and development 
related to any aspect of the rare earth material supply chain 
or research on alternatives and substitutes; 
(6) any other risk mitigation method determined appro-
priate by the Secretary that is consistent with the goal of 
establishing an assured source of supply by December 31, 2015; 
and 
(7) for steps of the rare earth material supply chain for 
which no other risk mitigation method, as described in para-
graphs (1) through (6), will ensure an assured source of supply 
by December 31, 2015, a specific plan to eliminate supply 
chain vulnerability by the earliest date practicable. 
(c) REPORT.— 
(1) REQUIREMENT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional committees described in paragraph 
(2) a report containing the findings of the assessment required 
under subsection (a) and the plan developed under subsection 
(b). 
(2) 
CONGRESSIONAL
COMMITTEES.—The 
congressional 
committees described in this paragraph are as follows: 
(A) The congressional defense committees. 
(B) The Committee on Science and Technology, the 
Committee on Financial Services, and the Committee on 
Ways and Means of the House of Representatives. 
(C) The Committee on Energy and Natural Resources, 
the Committee on Finance, and the Committee on Banking, 
Housing, and Urban Affairs of the Senate. 
SEC. 844. REVIEW OF NATIONAL SECURITY EXCEPTION TO COMPETI-
TION. 
(a) REVIEW REQUIRED.—The Comptroller General of the United 
States shall review the use of the national security exception to 
full and open competition provided in section 2304(c)(6) of title 
10, United States Code, by the Department of Defense. 
(b) MATTERS REVIEWED.—The review of the use of the national 
security exception required by subsection (a) shall include— 
(1) the pattern of usage of such exception by acquisition 
organizations within the Department to determine which 
organizations are commonly using the exception and the fre-
quency of such usage; 
(2) the range of items or services being acquired through 
the use of such exception; 
(3) the process for reviewing and approving justifications 
involving such exception;
H. R. 6523—149 
(4) whether the justifications for use of such exception 
typically meet the relevant requirements of the Federal Acquisi-
tion Regulation applicable to the use of such exception; 
(5) issues associated with follow-on procurements for items 
or services acquired using such exception; and 
(6) potential additional instances where such exception 
could be applied and any authorities available to the Depart-
ment other than such exception that could be applied in such 
instances. 
(c) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committees on Armed Services of the Senate and the House 
of Representatives a report on the review required by subsection 
(a), including a discussion of each of the matters specified in sub-
section (b). The report shall include any recommendations relating 
to the matters reviewed that the Secretary considers appropriate. 
The report shall be submitted in unclassified form but may include 
a classified annex. 
SEC. 845. REQUIREMENT FOR ENTITIES WITH FACILITY CLEARANCES 
THAT ARE NOT UNDER FOREIGN OWNERSHIP CONTROL 
OR INFLUENCE MITIGATION. 
(a) REQUIREMENT.—The Secretary of Defense shall develop a 
plan to ensure that covered entities employ and maintain policies 
and procedures that meet requirements under the national indus-
trial security program. In developing the plan, the Secretary shall 
consider whether or not covered entities, or any category of covered 
entities, should be required to establish government security 
committees similar to those required for companies that are subject 
to foreign ownership control or influence mitigation measures. 
(b) COVERED ENTITY.—A covered entity under this section is 
an entity— 
(1) to which the Department of Defense has granted a 
facility clearance; and 
(2) that is not subject to foreign ownership control or influ-
ence mitigation measures. 
(c) GUIDANCE.—The Secretary of Defense shall issue guidance, 
including appropriate compliance mechanisms, to implement the 
requirement in subsection (a). To the extent determined appropriate 
by the Secretary, the guidance shall require covered entities, or 
any category of covered entities, to establish government security 
committees similar to those required for companies that are subject 
to foreign ownership control or influence mitigation measures. 
(d) REPORT.—Not later than 270 days after the date of the 
enactment of this Act, the Secretary shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives 
a report on the plan developed pursuant to subsection (a) and 
the guidance issued pursuant to subsection (c). The report shall 
specifically address the rationale for the Secretary’s decision on 
whether or not to require covered entities, or any category of covered 
entities, to establish government security committees similar to 
those required for companies that are subject to foreign ownership 
control or influence mitigation measures. 
SEC. 846. PROCUREMENT OF PHOTOVOLTAIC DEVICES. 
(a) CONTRACT REQUIREMENT.—The Secretary of Defense shall 
ensure that each contract described in subsection (b) awarded by
H. R. 6523—150 
the Department of Defense includes a provision requiring the photo-
voltaic devices provided under the contract to comply with the 
Buy American Act (41 U.S.C. 10a et seq.), subject to the exceptions 
to that Act provided in the Trade Agreements Act of 1979 (19 
U.S.C. 2501 et seq.) or otherwise provided by law. 
(b) CONTRACTS DESCRIBED.—The contracts described in this 
subsection include energy savings performance contracts, utility 
service contracts, land leases, and private housing contracts, to 
the extent that such contracts result in ownership of photovoltaic 
devices by the Department of Defense. For the purposes of this 
section, the Department of Defense is deemed to own a photovoltaic 
device if the device is— 
(1) installed on Department of Defense property or in a 
facility owned by the Department of Defense; and 
(2) reserved for the exclusive use of the Department of 
Defense for the full economic life of the device. 
(c) DEFINITION
OF PHOTOVOLTAIC DEVICES.—In this section, 
the term ‘‘photovoltaic devices’’ means devices that convert light 
directly into electricity through a solid-state, semiconductor process. 
SEC. 847. NON-AVAILABILITY EXCEPTION FROM BUY AMERICAN 
REQUIREMENTS FOR PROCUREMENT OF HAND OR MEAS-
URING TOOLS. 
Section 2533a(c) of title 10, United States Code, is amended 
by striking ‘‘subsection (b)(1)’’ and inserting ‘‘subsection (b)’’. 
SEC. 848. CONTRACTOR LOGISTICS SUPPORT OF CONTINGENCY OPER-
ATIONS. 
(a) DEFENSE
SCIENCE
BOARD
REVIEW
OF
ORGANIZATION, 
TRAINING, AND PLANNING.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall direct 
the Defense Science Board to carry out a review of Department 
of Defense organization, doctrine, training, and planning for con-
tractor logistics support of contingency operations. 
(b) MATTERS TO BE ADDRESSED.— 
(1) IN
GENERAL.—The matters addressed by the review 
required by subsection (a) shall include, at a minimum, the 
following: 
(A) Department of Defense policies and procedures for 
planning for contractor logistics support of contingency 
operations. 
(B) Department organization and staffing for the 
implementation of such policies and procedures. 
(C) The development of Department doctrine for con-
tractor logistics support of contingency operations. 
(D) The training of Department military and civilian 
personnel for the planning, management, and oversight 
of contractor logistics support of contingency operations. 
(E) The extent to which the Department should rely 
upon contractor logistics support in future contingency 
operations, and the risks associated with reliance on such 
support. 
(F) Any logistics support functions for contingency 
operations for which the Department should establish or 
retain an organic capability. 
(G) The scope and level of detail on contractor logistics 
support of contingency operations that is currently included
H. R. 6523—151 
in operational plans, and that should be included in oper-
ational plans. 
(H) Contracting mechanisms and contract vehicles that 
are currently used, and should be used, to provide con-
tractor logistics support of contingency operations. 
(I) Department organization and staffing for the 
management and oversight of contractor logistics support 
of contingency operations. 
(J) Actions that could be taken to improve Department 
management and oversight of contractors providing logis-
tics support of contingency operations. 
(K) The extent to which logistics support of contingency 
operations has been, and should be, provided by subcontrac-
tors, and the advantages and disadvantages of reliance 
upon subcontractors for that purpose. 
(L) The extent to which logistics support of contingency 
operations has been, and should be, provided by local 
nationals and third country nationals, and the advantages 
and disadvantages of reliance upon such sources for that 
purpose. 
(2) 
FINDINGS
AND
RECOMMENDATIONS.—The 
review 
required by subsection (a) shall include findings and rec-
ommendations related to— 
(A) legislative or policy guidance to address the matters 
listed in paragraph (1); and 
(B) whether and to what extent the quadrennial 
defense review (conducted pursuant to section 118 of title 
10, United States Code) or assessments by the Chairman 
of the Joint Chiefs of Staff for the biennial review of the 
national military strategy (conducted pursuant to section 
153(d) of such title) should be required to address require-
ments for contractor support of the Armed Forces in con-
ducting peacetime training, peacekeeping, overseas contin-
gency operations, and major combat operations, and the 
risks associated with such support. 
(c) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the congres-
sional defense committees a report on the results of the review 
required by subsection (a). The report shall include the findings 
and recommendations of the Defense Science Board, including such 
recommendations for legislative or administrative action as the 
Board considers appropriate, together with any comments the Sec-
retary considers appropriate. 
Subtitle F—Improve Acquisition Act 
SEC. 860. SHORT TITLE. 
This subtitle may be cited as the ‘‘Improve Acquisition Act 
of 2010’’.
H. R. 6523—153 
the successful and efficient operation of such elements of the defense 
acquisition system. 
‘‘§ 2547. Acquisition-related functions of chiefs of the armed 
forces 
‘‘(a) PERFORMANCE
OF CERTAIN ACQUISITION-RELATED FUNC-
TIONS.—The Secretary of Defense shall ensure that the Chief of 
Staff of the Army, the Chief of Naval Operations, the Chief of 
Staff of the Air Force, and the Commandant of the Marine Corps 
assist the Secretary of the military department concerned in the 
performance of the following acquisition-related functions of such 
department: 
‘‘(1) The development of requirements relating to the 
defense acquisition system (subject, where appropriate, to 
validation by the Joint Requirements Oversight Council pursu-
ant to section 181 of this title). 
‘‘(2) The coordination of measures to control requirements 
creep in the defense acquisition system. 
‘‘(3) The development of career paths in acquisition for 
military personnel (as required by section 1722a of this title). 
‘‘(4) The assignment and training of contracting officer 
representatives when such representatives are required to be 
members of the armed forces because of the nature of the 
contract concerned. 
‘‘(b) RULE OF CONSTRUCTION.—Nothing in this section shall 
be construed to affect the assignment of functions under section 
3014(c)(1)(A), section 5014(c)(1)(A), or section 8014(c)(1)(A) of this 
title, except as explicitly provided in this section. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘requirements creep’ means the addition of 
new technical or operational specifications after a requirements 
document is approved by the appropriate validation authority 
for the requirements document. 
‘‘(2) The term ‘requirements document’ means a document 
produced in the requirements process that is provided for an 
acquisition program to guide the subsequent development, 
production, and testing of the program and that— 
‘‘(A) justifies the need for a materiel approach, or an 
approach that is a combination of materiel and non-mate-
riel, to satisfy one or more specific capability gaps; 
‘‘(B) details the information necessary to develop an 
increment of militarily useful, logistically supportable, and 
technically mature capability, including key performance 
parameters; or 
‘‘(C) identifies production attributes required for a 
single increment of a program. 
‘‘§ 2548. Performance assessments of the defense acquisition 
system 
‘‘(a) PERFORMANCE ASSESSMENTS REQUIRED.—Not later than 
180 days after the date of the enactment of the Ike Skelton National 
Defense Authorization Act for Fiscal Year 2011, the Secretary of 
Defense, acting through the Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics, the Director of Procurement and 
Acquisition Policy, and the Director of the Office of Performance 
Assessment and Root Cause Analysis, shall issue guidance, with 
detailed implementation instructions, for the Department of Defense
H. R. 6523—154 
to provide for periodic independent performance assessments of 
elements of the defense acquisition system for the purpose of— 
‘‘(1) determining the extent to which such elements of the 
defense acquisition system deliver value to the Department 
of Defense, taking into consideration the performance elements 
identified in subsection (b); 
‘‘(2) assisting senior officials of the Department of Defense 
in identifying and developing lessons learned from best prac-
tices and shortcomings in the performance of such elements 
of the defense acquisition system; and 
‘‘(3) assisting senior officials of the Department of Defense 
in developing acquisition workforce excellence under section 
1701a of this title 
‘‘(b) AREAS CONSIDERED IN PERFORMANCE ASSESSMENTS.—(1) 
Each performance assessment conducted pursuant to subsection 
(a) shall consider, at a minimum— 
‘‘(A) the extent to which acquisitions conducted by the 
element of the defense acquisition system under review meet 
applicable cost, schedule, and performance objectives; and 
‘‘(B) the staffing and quality of the acquisition workforce 
and the effectiveness of the management of the acquisition 
workforce, including workforce incentives and career paths. 
‘‘(2) The Secretary of Defense shall ensure that the performance 
assessments required by this section are appropriately tailored to 
reflect the diverse nature of the work performed by each element 
of the defense acquisition system. In addition to the mandatory 
areas under paragraph (1), a performance assessment may consider, 
as appropriate, specific areas of acquisition concern, such as— 
‘‘(A) the selection of contractors, including— 
‘‘(i) the extent of competition and the use of exceptions 
to competition requirements; 
‘‘(ii) compliance with Department of Defense policies 
regarding the participation of small business concerns and 
various categories of small business concerns, including 
the use of contract bundling and the availability of non- 
bundled contract vehicles; 
‘‘(iii) the quality of market research; 
‘‘(iv) the effective consideration of contractor past 
performance; and 
‘‘(v) the number of bid protests, the extent to which 
such bid protests have been successful, and the reasons 
for such success; 
‘‘(B) the negotiation of contracts, including— 
‘‘(i) the appropriate application of section 2306a of this 
title (relating to truth in negotiations); 
‘‘(ii) the appropriate use of contract types appropriate 
to specific procurements; 
‘‘(iii) the appropriate use of performance requirements; 
‘‘(iv) the appropriate acquisition of technical data and 
other rights and assets necessary to support long-term 
sustainment and follow-on procurement; and 
‘‘(v) the timely definitization of any undefinitized con-
tract actions; and 
‘‘(C) 
the 
management 
of 
contractor 
performance, 
including—
H. R. 6523—155 
‘‘(i) the assignment of appropriately qualified con-
tracting officer representatives and other contract manage-
ment personnel; 
‘‘(ii) the extent of contract disputes, the reasons for 
such disputes, and the extent to which they have been 
successfully addressed; 
‘‘(iii) the appropriate consideration of long-term 
sustainment and energy efficiency objectives; and 
‘‘(iv) the appropriate use of integrated testing. 
‘‘(c) CONTENTS OF GUIDANCE.—The guidance issued pursuant 
to subsection (a) shall ensure that each element of the defense 
acquisition system is subject to a performance assessment under 
this section not less often than once every four years, and shall 
address, at a minimum— 
‘‘(1) the designation of elements of the defense acquisition 
system that are subject to performance assessment at an 
organizational level that ensures such assessments can be per-
formed in an efficient and integrated manner; 
‘‘(2) the frequency with which such performance assess-
ments should be conducted; 
‘‘(3) goals, standards, tools, and metrics for use in con-
ducting performance assessments; 
‘‘(4) the composition of the teams designated to perform 
performance assessments; 
‘‘(5) any phase-in requirements needed to ensure that quali-
fied staff are available to perform performance assessments; 
‘‘(6) procedures for tracking the implementation of rec-
ommendations made pursuant to performance assessments; 
‘‘(7) procedures for developing and disseminating lessons 
learned from performance assessments; and 
‘‘(8) procedures for ensuring that information from perform-
ance assessments are retained electronically and are provided 
in a timely manner to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Director of the 
Office of Performance Assessment and Root Cause Analysis 
as needed to assist them in performing their responsibilities 
under this section. 
‘‘(d) PERFORMANCE GOALS UNDER GOVERNMENT PERFORMANCE 
RESULTS ACT OF 1993.—Beginning with fiscal year 2012, the annual 
performance plan prepared by the Department of Defense pursuant 
to section 1115 of title 31 shall include appropriate performance 
goals for elements of the defense acquisition system. 
‘‘(e) REPORTING REQUIREMENTS.—Beginning with fiscal year 
2012— 
‘‘(1) the annual report prepared by the Secretary of Defense 
pursuant to section 1116 of title 31, United States Code, shall 
address the Department’s success in achieving performance 
goals established pursuant to such section for elements of the 
defense acquisition system; and 
‘‘(2) the annual report prepared by the Director of the 
Office of Performance Assessment and Root Cause Analysis 
pursuant to section 103(f) of the Weapon Systems Acquisition 
Reform Act of 2009 (10 U.S.C. 2430 note), shall include informa-
tion on the activities undertaken by the Department pursuant 
to such section, including a summary of significant findings 
or recommendations arising out of performance assessments.’’.
H. R. 6523—156 
(b) CLERICAL AMENDMENTS.—The table of chapters at the begin-
ning of subtitle A of title 10, United States Code, and at the 
beginning of part IV of such subtitle, are each amended by inserting 
after the item relating to chapter 148 the following new item: 
‘‘149. Defense Acquisition System ................................................................... 2545’’. 
SEC. 862. COMPTROLLER GENERAL REPORT ON JOINT CAPABILITIES 
INTEGRATION AND DEVELOPMENT SYSTEM. 
(a) REPORT REQUIRED.—The Comptroller General of the United 
States shall carry out a comprehensive review of the Joint Capabili-
ties Integration and Development System (in this section referred 
to as ‘‘JCIDS’’). Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the congressional defense committees a report on the review and 
include in such report any recommendations the Comptroller Gen-
eral considers necessary and advisable to improve or replace JCIDS. 
(b) CONTENT OF THE REVIEW.— 
(1) PURPOSE.—The purpose of the review required by sub-
section (a) is to evaluate the effectiveness of JCIDS in achieving 
the following objectives: 
(A) 
Timeliness 
in 
delivering 
capability 
to 
the 
warfighter. 
(B) Efficient use of the investment resources of the 
Department of Defense. 
(C) Control of requirements creep. 
(D) Responsiveness to changes occurring after the 
approval of a requirements document (including changes 
to the threat environment, the emergence of new capabili-
ties, or changes in the resources estimated to procure or 
sustain a capability). 
(E) Development of the personnel skills, capacity, and 
training needed for an effective and efficient requirements 
process. 
(2) MATTERS CONSIDERED.—In performing the review, the 
Comptroller General shall gather information on and consider 
the following matters: 
(A) The time that requirements documents take to 
receive approval through JCIDS. 
(B) The quality of cost information considered in JCIDS 
and the extent of its consideration. 
(C) The extent to which JCIDS establishes a meaning-
ful level of priority for requirements. 
(D) The extent to which JCIDS is considering trade- 
offs between cost, schedule, and performance objectives. 
(E) The quality of information on sustainment consid-
ered in JCIDS and the extent to which sustainment 
information is considered. 
(F) An evaluation of the advantages and disadvantages 
of designating a commander of a unified combatant com-
mand for each requirements document for which the Joint 
Requirements Oversight Council is the validation authority 
to provide a joint evaluation task force to participate in 
a materiel solution and to— 
(i) provide input to the analysis of alternatives; 
(ii) participate in testing (including limited user 
tests and prototype testing);
H. R. 6523—157 
(iii) provide input on a concept of operations and 
doctrine; 
(iv) provide end user feedback to the resource 
sponsor; and 
(v) participate, through the combatant commander 
concerned, in any alteration of the requirement for 
such solution. 
(c) DEFINITIONS.—In this section: 
(1) JOINT
CAPABILITIES
INTEGRATION
AND
DEVELOPMENT 
SYSTEM.—The term ‘‘Joint Capabilities Integration and Develop-
ment System’’ means the system for the assessment, review, 
validation, and approval of joint warfighting requirements that 
is described in Chairman of the Joint Chiefs of Staff Instruction 
3170.01G 
(2) REQUIREMENTS
DOCUMENT.—The term ‘‘requirements 
document’’ means a document produced in JCIDS that is pro-
vided for an acquisition program to guide the subsequent 
development, production, and testing of the program and that— 
(A) justifies the need for a materiel approach, or an 
approach that is a combination of materiel and non-mate-
riel, to satisfy one or more specific capability gaps; 
(B) details the information necessary to develop an 
increment of militarily useful, logistically supportable, and 
technically mature capability, including key performance 
parameters; or 
(C) identifies production attributes required for a single 
increment of a program. 
(3) REQUIREMENTS CREEP.—The term ‘‘requirements creep’’ 
means the addition of new technical or operational specifica-
tions after a requirements document is approved. 
(4) MATERIEL
SOLUTION.—The term ‘‘materiel solution’’ 
means the development, acquisition, procurement, or fielding 
of a new item, or of a modification to an existing item, necessary 
to equip, operate, maintain, and support military activities. 
SEC. 863. REQUIREMENTS FOR THE ACQUISITION OF SERVICES. 
(a) ESTABLISHMENT
OF REQUIREMENTS PROCESSES
FOR
THE 
ACQUISITION OF SERVICES.—The Secretary of Defense shall ensure 
that the military departments and Defense Agencies each establish 
a process for identifying, assessing, reviewing, and validating 
requirements for the acquisition of services. 
(b) OPERATIONAL REQUIREMENTS.—With regard to requirements 
for the acquisition of services in support of combatant commands 
and military operations, the Secretary shall ensure— 
(1) that the Chief of Staff of the Army, the Chief of Naval 
Operations, the Chief of Staff of the Air Force, and the Com-
mandant of the Marine Corps implement and bear chief respon-
sibility for carrying out, within the Armed Force concerned, 
the process established pursuant to subsection (a) for such 
Armed Force; and 
(2) that commanders of unified combatant commands and 
other officers identified or designated as joint qualified officers 
have an opportunity to participate in the process of each mili-
tary department to provide input on joint requirements for 
the acquisition of services. 
(c) SUPPORTING REQUIREMENTS.—With regard to requirements 
for the acquisition of services not covered by subsection (b), the
H. R. 6523—158 
Secretary shall ensure that the secretaries of the military depart-
ments and the heads of the Defense Agencies implement and bear 
chief responsibility for carrying out, within the military department 
or Defense Agency concerned, the process established pursuant 
to subsection (a) for such military department or Defense Agency. 
(d) IMPLEMENTATION PLANS REQUIRED.—The Secretary shall 
ensure that an implementation plan is developed for each process 
established pursuant to subsection (a) that addresses, at a min-
imum, the following: 
(1) The organization of such process. 
(2) The level of command responsibility required for identi-
fying, assessing, reviewing, and validating requirements for 
the acquisition of services in accordance with the requirements 
of this section and the categories established under section 
2330(a)(1)(C) of title 10, United States Code. 
(3) The composition of positions necessary to operate such 
process. 
(4) The training required for personnel engaged in such 
process. 
(5) The relationship between doctrine and such process. 
(6) Methods of obtaining input on joint requirements for 
the acquisition of services. 
(7) Procedures for coordinating with the acquisition process. 
(8) Considerations relating to opportunities for strategic 
sourcing. 
(e) MATTERS REQUIRED IN IMPLEMENTATION PLAN.—Each plan 
required under subsection (d) shall provide for initial implementa-
tion of a process for identifying, assessing, reviewing, and validating 
requirements for the acquisition of services not later than one 
year after the date of the enactment of this Act and shall provide 
for full implementation of such process at the earliest date prac-
ticable. 
(f) CONSISTENCY WITH JOINT GUIDANCE.—Whenever, at any 
time, guidance is issued by the Chairman of the Joint Chiefs of 
Staff relating to requirements for the acquisition of services in 
support of combatant commands and military operations, each 
process established pursuant to subsection (a) shall be revised in 
accordance with such joint guidance. 
(g) DEFINITION.—The term ‘‘requirements for the acquisition 
of services’’ means objectives to be achieved through acquisitions 
primarily involving the procurement of services. 
(h) REVIEW
OF
SUPPORTING
REQUIREMENTS
TO
IDENTIFY 
SAVINGS.—The secretaries of the military departments and the 
heads of the Defense Agencies shall review and validate each 
requirement described in subsection (c) with an anticipated cost 
in excess of $10,000,000 with the objective of identifying unneeded 
or low priority requirements that can be reduced or eliminated, 
with the savings transferred to higher priority objectives. Savings 
identified and transferred to higher priority objectives through 
review and revalidation under this subsection shall count toward 
the savings objectives established in the June 4, 2010, guidance 
of the Secretary of Defense on improved operational efficiencies 
and the annual reduction in funding for service support contractors 
required by the August 16, 2010, guidance of the Secretary of 
Defense on efficiency initiatives. As provided by the Secretary, 
cost avoidance shall not count toward these objectives.
H. R. 6523—159 
(i) EXTENSION OF AUTHORITY.—Subsection (e) of section 834 
of the National Defense Authorization Act for Fiscal Years 1990 
and 1991 (15 U.S.C. 637 note) is amended by striking ‘‘September 
30, 2010’’ and inserting ‘‘December 31, 2011’’. 
SEC. 864. REVIEW OF DEFENSE ACQUISITION GUIDANCE. 
(a) REVIEW
OF GUIDANCE.—The Secretary of Defense shall 
review the acquisition guidance of the Department of Defense, 
including, at a minimum, the guidance contained in Department 
of Defense Instruction 5000.02 entitled ‘‘Operation of the Defense 
Acquisition System’’. 
(b) MATTERS CONSIDERED.—The review performed under sub-
section (a) shall consider— 
(1) the extent to which the acquisition of commercial goods 
and commodities, commercial and military unique services, and 
information technology should be addressed in Department of 
Defense Instruction 5000.02 and other guidance primarily 
relating to the acquisition of weapon systems, or should be 
addressed in separate instructions and guidance; 
(2) whether long-term sustainment and energy efficiency 
of weapon systems is appropriately emphasized; 
(3) whether appropriate mechanisms exist to communicate 
information relating to the mission needs of the Department 
of Defense to the industrial base in a way that allows the 
industrial base to make appropriate investments in infrastruc-
ture, capacity, and technology development to help meet such 
needs; 
(4) the extent to which earned value management should 
be required on acquisitions not involving the acquisition of 
weapon systems and whether measures of quality and technical 
performance should be included in any earned value manage-
ment system; and 
(5) such other matters as the Secretary considers appro-
priate. 
(c) REPORT.—Not later than 270 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House 
of Representatives a report detailing any changes in the acquisition 
guidance of the Department of Defense identified during the review 
required by subsection (a), and any actions taken, or planned to 
be taken, to implement such changes. 
SEC. 865. REQUIREMENT TO REVIEW REFERENCES TO SERVICES 
ACQUISITION THROUGHOUT THE FEDERAL ACQUISITION 
REGULATION AND THE DEFENSE FEDERAL ACQUISITION 
REGULATION SUPPLEMENT. 
(a) REVIEW REQUIRED.—The Secretary of Defense, in consulta-
tion with the Administrator for Federal Procurement Policy and 
the heads of such other Federal agencies as the Secretary considers 
appropriate, shall review the Federal Acquisition Regulation and 
the Defense Federal Acquisition Regulation Supplement to ensure 
that such regulations include appropriate guidance for and ref-
erences to services acquisition that are in addition to references 
provided in part 37 and the Defense Supplement to part 37. 
(b) MATTERS CONSIDERED.—The review required by subsection 
(a) shall consider the extent to which additional guidance is 
needed—
H. R. 6523—160 
(1) to provide the tools and processes needed to assist 
contracting officials in addressing the full range of complexities 
that can arise in the acquisition of services; and 
(2) to enhance and support the procurement and project 
management community in all aspects of the process for the 
acquisition of services, including requirements development, 
assessment of reasonableness, and post-award management and 
oversight. 
(c) 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 Senate and the House 
of Representatives a report containing— 
(1) a summary of the findings of the review required by 
subsection (a); and 
(2) any recommendations that the Secretary may have 
for changes to the Federal Acquisition Regulation and the 
Defense Federal Acquisition Regulation Supplement to address 
such findings, including identifying any changes that are nec-
essary to improve part 37 (which specifically addresses services 
acquisitions). 
SEC. 866. PILOT PROGRAM ON ACQUISITION OF MILITARY PURPOSE 
NONDEVELOPMENTAL ITEMS. 
(a) PILOT PROGRAM AUTHORIZED.— 
(1) IN GENERAL.—The Secretary of Defense may carry out 
a pilot program to assess the feasability and advisability of 
acquiring military purpose nondevelopmental items in accord-
ance with this section. 
(2) SCOPE OF PROGRAM.—Under the pilot program, the Sec-
retary may enter into contracts with nontraditional defense 
contractors for the acquisition of military purpose nondevelop-
mental items in accordance with the requirements set forth 
in subsection (b). 
(b) CONTRACT REQUIREMENTS.—Each contract entered into 
under the pilot program— 
(1) shall be a firm, fixed price contract, or a firm, fixed 
price contract with an economic price adjustment clause 
awarded using competitive procedures in accordance with 
chapter 137 of title 10, United States Code; 
(2) shall be in an amount not in excess of $50,000,000, 
including all options; 
(3) shall provide— 
(A) for the delivery of an initial lot of production quan-
tities of completed items not later than nine months after 
the date of the award of such contract; and 
(B) that failure to make delivery as provided for under 
subparagraph (A) may result in the termination of such 
contract for default; and 
(4) shall be— 
(A) exempt from the requirement to submit certified 
cost or pricing data under section 2306a of title 10, United 
States Code, and the cost accounting standards under sec-
tion 26 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 422); and 
(B) subject to the requirement to provide data other 
than certified cost or pricing data for the purpose of price
H. R. 6523—161 
reasonableness determinations, as provided in section 
2306a(d) of title 10, United States Code. 
(c) REGULATIONS.—If the Secretary establishes the pilot pro-
gram authorized under subsection (a), the Secretary shall prescribe 
regulations governing such pilot program. Such regulations shall 
be included in regulations of the Department of Defense prescribed 
as part of the Federal Acquisition Regulation and shall include 
the contract clauses and procedures necessary to implement such 
program. 
(d) REPORTS.— 
(1) REPORTS ON PROGRAM ACTIVITIES.—Not later than 60 
days after the end of any fiscal year in which the pilot program 
is in effect, the Secretary shall submit to the congressional 
defense committees a report on the pilot program. The report 
shall be in unclassified form but may include a classified annex. 
Each report shall include, for each contract entered into under 
the pilot program in the preceding fiscal year, the following: 
(A) The contractor. 
(B) The item or items to be acquired. 
(C) The military purpose to be served by such item 
or items. 
(D) The amount of the contract. 
(E) The actions taken by the Department of Defense 
to ensure that the price paid for such item or items is 
fair and reasonable. 
(2) PROGRAM ASSESSMENT.—If the Secretary establishes the 
pilot program authorized under subsection (a), not later than 
four years 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 setting forth the 
assessment of the Comptroller General of the extent to which 
the pilot program— 
(A) enabled the Department to acquire items that 
otherwise might not have been available to the Depart-
ment; 
(B) assisted the Department in the rapid acquisition 
and fielding of capabilities needed to meet urgent oper-
ational needs; and 
(C) protected the interests of the United States in 
paying fair and reasonable prices for the item or items 
acquired. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘military purpose nondevelopmental item’’ 
means a nondevelopmental item that meets a validated military 
requirement, as determined in writing by the responsible pro-
gram manager, and has been developed exclusively at private 
expense. For purposes of this paragraph, an item shall not 
be considered to be developed exclusively at private expense 
if development of the item was paid for in whole or in part 
through— 
(A) independent research and development costs or 
bid and proposal costs that have been reimbursed directly 
or indirectly by a Federal agency or have been submitted 
to a Federal agency for reimbursement; or 
(B) foreign government funding. 
(2) The term ‘‘nondevelopmental item’’—
H. R. 6523—162 
(A) has the meaning given that term in section 4(13) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(13)); and 
(B) also includes previously developed items of supply 
that require modifications other than those customarily 
available in the commercial marketplace if such modifica-
tions are consistent with the requirement in subsection 
(b)(3)(A). 
(3) The term ‘‘nontraditional defense contractor’’ has the 
meaning given that term in section 2302(9) of title 10, United 
States Code (as added by subsection (g)). 
(4) The terms ‘‘independent research and developments 
costs’’ and ‘‘bid and proposal costs’’ have the meaning given 
such terms in section 31.205–18 of the Federal Acquisition 
Regulation. 
(f) SUNSET.— 
(1) IN GENERAL.—The authority to carry out the pilot pro-
gram shall expire on the date that is five years after the 
date of the enactment of this Act. 
(2) CONTINUATION OF CURRENT CONTRACTS.—The expiration 
under paragraph (1) of the authority to carry out the pilot 
program shall not affect the validity of any contract awarded 
under the pilot program before the date of the expiration of 
the pilot program under that paragraph. 
(g) STATUTORY DEFINITION OF NONTRADITIONAL DEFENSE CON-
TRACTOR.— 
(1) NONTRADITIONAL DEFENSE CONTRACTOR.—Section 2302 
of title 10, United States Code, is amended by adding at the 
end the following: 
‘‘(9) The term ‘nontraditional defense contractor’, with 
respect to a procurement or with respect to a transaction 
authorized under section 2371(a) of this title, means an entity 
that is not currently performing and has not performed, for 
at least the one-year period preceding the solicitation of sources 
by the Department of Defense for the procurement or trans-
action, any of the following for the Department of Defense: 
‘‘(A) Any contract or subcontract that is subject to 
full coverage under the cost accounting standards pre-
scribed pursuant to section 26 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422) and the regulations 
implementing such section. 
‘‘(B) Any other contract in excess of $500,000 under 
which the contractor is required to submit certified cost 
or pricing data under section 2306a of this title.’’. 
(2) CONFORMING
AMENDMENT.—Section 845(f) of the 
National Defense Authorization Act for Fiscal Year 1994 (10 
U.S.C. 2371 note) is amended to read as follows: 
‘‘(f) NONTRADITIONAL DEFENSE CONTRACTOR DEFINED.—In this 
section, the term ‘nontraditional defense contractor’ has the 
meaning provided by section 2302(9) of title 10, United States 
Code.’’.
H. R. 6523—163 
PART II—DEFENSE ACQUISITION WORKFORCE 
SEC. 871. ACQUISITION WORKFORCE EXCELLENCE. 
(a) ACQUISITION WORKFORCE EXCELLENCE.—Subchapter I of 
chapter 87 of title 10, United States Code, is amended by inserting 
after section 1701 the following new section: 
‘‘§ 1701a. Management for acquisition workforce excellence 
‘‘(a) PURPOSE.—The purpose of this chapter is to require the 
Department of Defense to develop and manage a highly skilled 
professional acquisition workforce— 
‘‘(1) in which excellence and contribution to mission is 
rewarded; 
‘‘(2) which has the technical expertise and business skills 
to ensure the Department receives the best value for the 
expenditure of public resources; 
‘‘(3) which serves as a model for performance management 
of employees of the Department; and 
‘‘(4) which is managed in a manner that complements and 
reinforces the management of the defense acquisition system 
pursuant to chapter 149 of this title. 
‘‘(b) PERFORMANCE MANAGEMENT.—In order to achieve the pur-
pose set forth in subsection (a), the Secretary of Defense shall— 
‘‘(1) use the full authorities provided in subsections (a) 
through (d) of section 9902 of title 5, including flexibilities 
related to performance management and hiring and to training 
of managers; 
‘‘(2) require managers to develop performance plans for 
individual members of the acquisition workforce in order to 
give members an understanding of how their performance 
contributes to their organization’s mission and the success of 
the defense acquisition system (as defined in section 2545 of 
this title); 
‘‘(3) to the extent appropriate, use the lessons learned 
from the acquisition demonstration project carried out under 
section 1762 of this title related to contribution-based com-
pensation and appraisal, and how those lessons may be applied 
within the General Schedule system; 
‘‘(4) develop attractive career paths; 
‘‘(5) encourage continuing education and training; 
‘‘(6) develop appropriate procedures for warnings during 
performance evaluations for members of the acquisition 
workforce who consistently fail to meet performance standards; 
‘‘(7) take full advantage of the Defense Civilian Leadership 
Program established under section 1112 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111–84; 
123 Stat. 2496; 10 U.S.C. 1580 note prec.); 
‘‘(8) use the authorities for highly qualified experts under 
section 9903 of title 5, to hire experts who are skilled acquisition 
professionals to— 
‘‘(A) serve in leadership positions within the acquisition 
workforce to strengthen management and oversight; 
‘‘(B) provide mentors to advise individuals within the 
acquisition workforce on their career paths and opportuni-
ties to advance and excel within the acquisition workforce; 
and
H. R. 6523—164 
‘‘(C) assist with the design of education and training 
courses and the training of individuals in the acquisition 
workforce; and 
‘‘(9) use the authorities for expedited security clearance 
processing pursuant to section 1564 of this title. 
‘‘(c) NEGOTIATIONS.—Any action taken by the Secretary under 
this section, or to implement this section, shall be subject to the 
requirements of chapter 71 of title 5. 
‘‘(d) REGULATIONS.—Any rules or regulations prescribed pursu-
ant to this section shall be deemed an agency rule or regulation 
under section 7117(a)(2) of title 5, and shall not be deemed a 
Government-wide rule or regulation under section 7117(a)(1) of 
such title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such subchapter is amended by inserting after the item 
relating to section 1701 the following new item: 
‘‘1701a. Management for acquisition workforce excellence.’’. 
SEC. 872. AMENDMENTS TO THE ACQUISITION WORKFORCE DEM-
ONSTRATION PROJECT. 
(a) CODIFICATION INTO TITLE 10.— 
(1) IN GENERAL.—Chapter 87 of title 10, United States 
Code, is amended by inserting after section 1761 the following 
new section: 
‘‘§ 1762. Demonstration project relating to certain acquisition 
personnel management policies and procedures 
‘‘(a) COMMENCEMENT.—The Secretary of Defense is authorized 
to carry out a demonstration project, the purpose of which is to 
determine the feasibility or desirability of one or more proposals 
for improving the personnel management policies or procedures 
that apply with respect to the acquisition workforce of the Depart-
ment of Defense and supporting personnel assigned to work directly 
with the acquisition workforce. 
‘‘(b) TERMS AND CONDITIONS.—(1) Except as otherwise provided 
in this subsection, any demonstration project described in subsection 
(a) shall be subject to section 4703 of title 5 and all other provisions 
of such title that apply with respect to any demonstration project 
under such section. 
‘‘(2) Subject to paragraph (3), in applying section 4703 of title 
5 with respect to a demonstration project described in subsection 
(a)— 
‘‘(A) ‘180 days’ in subsection (b)(4) of such section shall 
be deemed to read ‘120 days’; 
‘‘(B) ‘90 days’ in subsection (b)(6) of such section shall 
be deemed to read ‘30 days’; and 
‘‘(C) subsection (d)(1) of such section shall be disregarded. 
‘‘(3) Paragraph (2) shall not apply with respect to a demonstra-
tion project unless— 
‘‘(A) for each organization or team participating in the 
demonstration project— 
‘‘(i) at least one-third of the workforce participating 
in the demonstration project consists of members of the 
acquisition workforce; and 
‘‘(ii) at least two-thirds of the workforce participating 
in the demonstration project consists of members of the
H. R. 6523—165 
acquisition workforce and supporting personnel assigned 
to work directly with the acquisition workforce; and 
‘‘(B) the demonstration project commences before October 
1, 2007. 
‘‘(c) LIMITATION
ON
NUMBER
OF
PARTICIPANTS.—The total 
number of persons who may participate in the demonstration project 
under this section may not exceed 120,000. 
‘‘(d) EFFECT OF REORGANIZATIONS.—The applicability of para-
graph (2) of subsection (b) to an organization or team shall not 
terminate by reason that the organization or team, after having 
satisfied the conditions in paragraph (3) of such subsection when 
it began to participate in a demonstration project under this section, 
ceases to meet one or both of the conditions set forth in subpara-
graph (A) of such paragraph (3) as a result of a reorganization, 
restructuring, realignment, consolidation, or other organizational 
change. 
‘‘(e) ASSESSMENTS.—(1) The Secretary of Defense shall designate 
an independent organization to conduct two assessments of the 
acquisition workforce demonstration project described in subsection 
(a). 
‘‘(2) Each such assessment shall include the following: 
‘‘(A) A description of the workforce included in the project. 
‘‘(B) An explanation of the flexibilities used in the project 
to appoint individuals to the acquisition workforce and whether 
those appointments are based on competitive procedures and 
recognize veteran’s preferences. 
‘‘(C) An explanation of the flexibilities used in the project 
to develop a performance appraisal system that recognizes 
excellence in performance and offers opportunities for improve-
ment. 
‘‘(D) The steps taken to ensure that such system is fair 
and transparent for all employees in the project. 
‘‘(E) How the project allows the organization to better meet 
mission needs. 
‘‘(F) An analysis of how the flexibilities in subparagraphs 
(B) and (C) are used, and what barriers have been encountered 
that inhibit their use. 
‘‘(G) Whether there is a process for— 
‘‘(i) ensuring ongoing performance feedback and dia-
logue among supervisors, managers, and employees 
throughout the performance appraisal period; and 
‘‘(ii) setting timetables for performance appraisals. 
‘‘(H) The project’s impact on career progression. 
‘‘(I) The project’s appropriateness or inappropriateness in 
light of the complexities of the workforce affected. 
‘‘(J) The project’s sufficiency in terms of providing protec-
tions for diversity in promotion and retention of personnel. 
‘‘(K) The adequacy of the training, policy guidelines, and 
other preparations afforded in connection with using the project. 
‘‘(L) Whether there is a process for ensuring employee 
involvement in the development and improvement of the 
project. 
‘‘(3) The first assessment under this subsection shall be com-
pleted not later than September 30, 2012. The second and final 
assessment shall be completed not later than September 30, 2016. 
The Secretary shall submit to the covered congressional committees
H. R. 6523—166 
a copy of each assessment within 30 days after receipt by the 
Secretary of the assessment. 
‘‘(f) COVERED CONGRESSIONAL COMMITTEES.—In this section, 
the term ‘covered congressional committees’ means— 
‘‘(1) the Committees on Armed Services of the Senate and 
the House of Representatives; 
‘‘(2) the Committee on Homeland Security and Govern-
mental Affairs of the Senate; and 
‘‘(3) the Committee on Oversight and Government Reform 
of the House of Representatives. 
‘‘(g) TERMINATION OF AUTHORITY.—The authority to conduct 
a demonstration program under this section shall terminate on 
September 30, 2017. 
‘‘(h) CONVERSION.—Within 6 months after the authority to con-
duct a demonstration project under this section is terminated as 
provided in subsection (g), employees in the project shall convert 
to the civilian personnel system created pursuant to section 9902 
of title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of subchapter V of chapter 87 of title 10, United 
States Code, is amended by inserting after the item relating 
to section 1761 the following new item: 
‘‘1762. Demonstration project relating to certain acquisition personnel management 
policies and procedures.’’. 
(b) CONFORMING REPEAL.—Section 4308 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104–106; 10 
U.S.C. 1701 note) is repealed. 
SEC. 873. CAREER DEVELOPMENT FOR CIVILIAN AND MILITARY PER-
SONNEL IN THE ACQUISITION WORKFORCE. 
(a) CAREER PATHS.— 
(1) AMENDMENT.—Chapter 87 of title 10, United States 
Code, is amended by inserting after section 1722a the following 
new section: 
‘‘§ 1722b. Special requirements for civilian employees in the 
acquisition field 
‘‘(a) REQUIREMENT
FOR POLICY
AND GUIDANCE REGARDING 
CIVILIAN PERSONNEL IN ACQUISITION.—The Secretary of Defense, 
acting through the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall establish policies and issue guid-
ance to ensure the proper development, assignment, and employ-
ment of civilian members of the acquisition workforce to achieve 
the objectives specified in subsection (b). 
‘‘(b) OBJECTIVES.—Policies established and guidance issued 
pursuant to subsection (a) shall ensure, at a minimum, the fol-
lowing: 
‘‘(1) A career path in the acquisition field that attracts 
the highest quality civilian personnel, from either within or 
outside the Federal Government. 
‘‘(2) A deliberate workforce development strategy that 
increases attainment of key experiences that contribute to a 
highly qualified acquisition workforce. 
‘‘(3) Sufficient opportunities for promotion and advance-
ment in the acquisition field. 
‘‘(4) A sufficient number of qualified, trained members 
eligible for and active in the acquisition field to ensure adequate
H. R. 6523—167 
capacity, capability, and effective succession for acquisition 
functions, including contingency contracting, of the Department 
of Defense. 
‘‘(5) A deliberate workforce development strategy that 
ensures diversity in promotion, advancement, and experiential 
opportunities commensurate with the general workforce out-
lined in this section. 
‘‘(c) INCLUSION OF INFORMATION IN ANNUAL REPORT.—The Sec-
retary of Defense shall include in the report to Congress required 
under section 115b(d) of this title the following information related 
to the acquisition workforce for the period covered by the report 
(which shall be shown for the Department of Defense as a whole 
and separately for the Army, Navy, Air Force, Marine Corps, 
Defense Agencies, and Office of the Secretary of Defense): 
‘‘(1) The total number of persons serving in the Acquisition 
Corps, set forth separately for members of the armed forces 
and civilian employees, by grade level and by functional spe-
cialty. 
‘‘(2) The total number of critical acquisition positions held, 
set forth separately for members of the armed forces and 
civilian employees, by grade level and by other appropriate 
categories (including by program manager, deputy program 
manager, and division head positions), including average length 
of time served in each position. For each such category, the 
report shall specify the number of civilians holding such posi-
tions compared to the total number of positions filled. 
‘‘(3) The number of employees to whom the requirements 
of subsections (b)(2)(A) and (b)(2)(B) of section 1732 of this 
title did not apply because of the exceptions provided in para-
graphs (1) and (2) of section 1732(c) of this title, set forth 
separately by type of exception. 
‘‘(4) The number of times a waiver authority was exercised 
under section 1724(d), 1732(d), 1734(d), or 1736(c) of this title 
or any other provision of this chapter (or other provision of 
law) which permits the waiver of any requirement relating 
to the acquisition workforce, and in the case of each such 
authority, the reasons for exercising the authority. The Sec-
retary may present the information provided under this para-
graph by category or grouping of types of waivers and reasons.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of subchapter II of chapter 87 of such title is amended 
by inserting after the item relating to section 1722a the fol-
lowing new item: 
‘‘1722b. Special requirements for civilian employees in the acquisition field.’’. 
(b) CAREER EDUCATION AND TRAINING.—Section 1723 of such 
title is amended by redesignating subsection (b) as subsection (c) 
and inserting after subsection (a) the following new subsection: 
‘‘(b) CAREER PATH REQUIREMENTS.—For each career path, the 
Secretary of Defense, acting through the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, shall establish require-
ments for the completion of course work and related on-the-job 
training and demonstration of qualifications in the critical acquisi-
tion-related duties and tasks of the career path. The Secretary 
of Defense, acting through the Under Secretary, shall also—
H. R. 6523—168 
‘‘(1) encourage individuals in the acquisition workforce to 
maintain the currency of their acquisition knowledge and gen-
erally enhance their knowledge of related acquisition manage-
ment disciplines through academic programs and other self- 
developmental activities; and 
‘‘(2) develop key work experiences, including the creation 
of a program sponsored by the Department of Defense that 
facilitates the periodic interaction between individuals in the 
acquisition workforce and the end user in such end user’s 
environment to enhance the knowledge base of such workforce, 
for individuals in the acquisition workforce so that the individ-
uals may gain in-depth knowledge and experience in the 
acquisition process and become seasoned, well-qualified mem-
bers of the acquisition workforce.’’. 
SEC. 874. RECERTIFICATION AND TRAINING REQUIREMENTS. 
(a) CONTINUING EDUCATION.—Section 1723 of title 10, United 
States Code, as amended by section 873, is further amended by 
amending subsection (a) to read as follows: 
‘‘(a) QUALIFICATION
REQUIREMENTS.—(1) The Secretary of 
Defense shall establish education, training, and experience require-
ments for each acquisition position, based on the level of complexity 
of duties carried out in the position. In establishing such require-
ments, the Secretary shall ensure the availability and sufficiency 
of training in all areas of acquisition, including additional training 
courses with an emphasis on services contracting, market research 
strategies (including assessments of local contracting capabilities), 
long-term sustainment strategies, information technology, and rapid 
acquisition. 
‘‘(2) In establishing such requirements for positions other than 
critical acquisition positions designated pursuant to section 1733 
of this title, the Secretary may state the requirements by categories 
of positions. 
‘‘(3) The Secretary of Defense, acting through the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics, shall 
establish requirements for continuing education and periodic 
renewal of an individual’s certification. Any requirement for a cer-
tification renewal shall not require a renewal more often than 
once every five years.’’. 
(b) STANDARDS FOR TRAINING.— 
(1) IN
GENERAL.—Subchapter IV of Chapter 87 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 1748. Fulfillment standards for acquisition workforce 
training 
‘‘The Secretary of Defense, acting through the Under Secretary 
of Defense for Acquisition, Technology, and Logistics, shall develop 
fulfillment standards, and implement and maintain a program, 
for purposes of the training requirements of sections 1723, 1724, 
and 1735 of this title. Such fulfillment standards shall consist 
of criteria for determining whether an individual has demonstrated 
competence in the areas that would be taught in the training 
courses required under those sections. If an individual meets the 
appropriate fulfillment standard, the applicable training require-
ment is fulfilled.’’.
H. R. 6523—169 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such subchapter is amended by adding at the 
end the following new item: 
‘‘1748. Fulfillment standards for acquisition workforce training.’’. 
(3) DEADLINE FOR FULFILLMENT STANDARDS.—The fulfill-
ment standards required under section 1748 of title 10, United 
States Code, as added by paragraph (1), shall be developed 
not later than 270 days after the date of the enactment of 
this Act. 
(4) CONFORMING REPEAL.—Section 853 of Public Law 105– 
85 (111 Stat. 1851) is repealed. 
SEC. 875. INFORMATION TECHNOLOGY ACQUISITION WORKFORCE. 
(a) PLAN REQUIRED.—The Secretary of Defense shall develop 
and carry out a plan to strengthen the part of the acquisition 
workforce that specializes in information technology. The plan shall 
include the following: 
(1) Defined targets for billets devoted to information tech-
nology acquisition. 
(2) Specific certification requirements for individuals in 
the acquisition workforce who specialize in information tech-
nology acquisition. 
(3) Defined career paths for individuals in the acquisition 
workforce who specialize in information technology acquisitions. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘information technology’’ has the meaning 
provided such term in section 11101 of title 40, United States 
Code, and includes information technology incorporated into 
a major weapon system. 
(2) The term ‘‘major weapon system’’ has the meaning 
provided such term in section 2379(f) of title 10, United States 
Code. 
(c) DEADLINE.—The Secretary of Defense shall develop the plan 
required under this section not later than 270 days after the date 
of the enactment of this Act. 
SEC. 876. DEFINITION OF ACQUISITION WORKFORCE. 
Section 101(a) of title 10, United States Code, is amended 
by inserting after paragraph (17) the following new paragraph: 
‘‘(18) The term ‘acquisition workforce’ means the persons 
serving in acquisition positions within the Department of 
Defense, as designated pursuant to section 1721(a) of this title.’’. 
SEC. 877. DEFENSE ACQUISITION UNIVERSITY CURRICULUM REVIEW. 
(a) CURRICULUM REVIEW.—Not later than one year after the 
date of the enactment of this Act, the Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall lead a review of 
the curriculum offered by the Defense Acquisition University to 
ensure it adequately supports the training and education require-
ments of acquisition professionals, particularly in service con-
tracting, long term sustainment strategies, information technology, 
and rapid acquisition. The review shall also involve the service 
acquisition executives of each military department. 
(b) ANALYSIS OF FUNDING REQUIREMENTS FOR TRAINING.—Fol-
lowing the review conducted under subsection (a), the Secretary 
of Defense shall analyze the most recent future-years defense pro-
gram to determine the amounts of estimated expenditures and
H. R. 6523—170 
proposed appropriations necessary to support the training require-
ments of the amendments made by section 874, including any 
new training requirements determined after the review conducted 
under subsection (a). The Secretary shall identify any additional 
funding needed for such training requirements in the separate 
chapter on the defense acquisition workforce required in the next 
annual strategic workforce plan under 115b of title 10, United 
States Code. 
(c) REQUIREMENT
FOR ONGOING CURRICULUM DEVELOPMENT 
WITH CERTAIN SCHOOLS.— 
(1) REQUIREMENT.—Section 1746 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(c) CURRICULUM DEVELOPMENT.—The President of the Defense 
Acquisition University shall work with the relevant professional 
schools and degree-granting institutions of the Department of 
Defense and military departments to ensure that best practices 
are used in curriculum development to support acquisition 
workforce positions.’’. 
(2) AMENDMENT TO SECTION HEADING.—(A) The heading 
of section 1746 of such title is amended to read as follows: 
‘‘§ 1746. Defense Acquisition University’’. 
(B) The item relating to section 1746 in the table of sections 
at the beginning of subchapter IV of chapter 87 of such title 
is amended to read as follows: 
‘‘1746. Defense Acquisition University.’’. 
PART III—FINANCIAL MANAGEMENT 
SEC. 881. AUDIT READINESS OF FINANCIAL STATEMENTS OF THE 
DEPARTMENT OF DEFENSE. 
(a) INTERIM MILESTONES.— 
(1) REQUIREMENT.—Not later than 90 days after the date 
of the enactment of this Act, the Under Secretary of Defense 
(Comptroller), in consultation with the Deputy Chief Manage-
ment Officer of the Department of Defense, the secretaries 
of the military departments, and the heads of the defense 
agencies and defense field activities, shall establish interim 
milestones for achieving audit readiness of the financial state-
ments of the Department of Defense, consistent with the 
requirements of section 1003 of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2439; 10 U.S.C. 2222 note). 
(2) MATTERS
INCLUDED.—The interim milestones estab-
lished pursuant to paragraph (1) shall include, at a minimum, 
for each military department and for the defense agencies and 
defense field activities— 
(A) an interim milestone for achieving audit readiness 
for each major element of the statement of budgetary 
resources, including civilian pay, military pay, supply 
orders, contracts, and funds balance with the Treasury; 
and 
(B) an interim milestone for addressing the existence 
and completeness of each major category of Department 
of Defense assets, including military equipment, real prop-
erty, inventory, and operating material and supplies.
H. R. 6523—171 
(3) DESCRIPTION IN SEMIANNUAL REPORTS.—The Under Sec-
retary shall describe each interim milestone established pursu-
ant to paragraph (1) in the next semiannual report submitted 
pursuant to section 1003(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2439; 10 U.S.C. 2222 note). Each subsequent semiannual report 
submitted pursuant to section 1003(b) shall explain how the 
Department has progressed toward meeting such interim mile-
stones. 
(b) VALUATION OF DEPARTMENT OF DEFENSE ASSETS.— 
(1) REQUIREMENT.—Not later than 120 days after the date 
of the enactment of this Act, the Under Secretary of Defense 
(Comptroller) shall, in consultation with other appropriate Fed-
eral agencies and officials— 
(A) examine the costs and benefits of alternative 
approaches to the valuation of Department of Defense 
assets; 
(B) select an approach to such valuation that is con-
sistent with principles of sound financial management and 
the conservation of taxpayer resources; and 
(C) begin the preparation of a business case analysis 
supporting the selected approach. 
(2) The Under Secretary shall include information on the 
alternatives considered, the selected approach, and the business 
case analysis supporting that approach in the next semiannual 
report submitted pursuant to section 1003(b) of the National 
Defense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2439; 10 U.S.C. 2222 note). 
(c) REMEDIAL ACTIONS REQUIRED.—In the event that the 
Department of Defense, or any component of the Department of 
Defense, is unable to meet an interim milestone established pursu-
ant to subsection (a), the Under Secretary of Defense (Comptroller) 
shall— 
(1) develop a remediation plan to ensure that— 
(A) the component will meet the interim milestone 
no more than one year after the originally scheduled date; 
and 
(B) the component’s failure to meet the interim mile-
stone will not have an adverse impact on the Department’s 
ability to carry out the plan under section 1003(a) of the 
National Defense Authorization Act for Fiscal Year 2010 
(Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note); 
and 
(2) include in the next semiannual report submitted pursu-
ant to section 1003(b) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 
10 U.S.C. 2222 note)— 
(A) a statement of the reasons why the Department 
of Defense, or component of the Department of Defense, 
will be unable to meet such interim milestone; 
(B) the revised completion date for meeting such 
interim milestone; and 
(C) a description of the actions that have been taken 
and are planned to be taken by the Department of Defense, 
or component of the Department of Defense, to meet such 
interim milestone. 
(d) INCENTIVES FOR ACHIEVING AUDITABILITY.—
H. R. 6523—172 
(1) REVIEW REQUIRED.—Not later than 120 days after the 
date of the enactment of this Act, the Under Secretary of 
Defense (Comptroller) shall review options for providing appro-
priate incentives to the military departments, Defense Agencies, 
and defense field activities to ensure that financial statements 
are validated as ready for audit earlier than September 30, 
2017. 
(2) OPTIONS REVIEWED.—The review performed pursuant 
to paragraph (1) shall consider changes in policy that reflect 
the increased confidence that can be placed in auditable finan-
cial statements, and shall include, at a minimum, consideration 
of the following options: 
(A) Consistent with the need to fund urgent warfighter 
requirements and operational needs, priority in the release 
of appropriated funds. 
(B) Relief from the frequency of financial reporting 
in cases in which such reporting is not required by law. 
(C) Relief from departmental obligation and expendi-
ture thresholds to the extent that such thresholds establish 
requirements more restrictive than those required by law. 
(D) Increases in thresholds for reprogramming of funds. 
(E) Personnel management incentives for the financial 
and business management workforce. 
(F) Such other measures as the Under Secretary con-
siders appropriate. 
(3) REPORT.—The Under Secretary shall include a discus-
sion of the review performed pursuant to paragraph (1) in 
the next semiannual report pursuant to section 1003(b) of the 
National Defense Authorization Act for Fiscal Year 2010 (Public 
Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) and for 
each option considered pursuant to paragraph (2) shall 
include— 
(A) an assessment of the extent to which the 
implementation of the option— 
(i) would be consistent with the efficient operation 
of the Department of Defense and the effective funding 
of essential Department of Defense programs and 
activities; and 
(ii) would contribute to the achievement of Depart-
ment of Defense goals to prepare auditable financial 
statements; and 
(B) a recommendation on whether such option should 
be adopted, a schedule for implementing the option if adop-
tion is recommended, or a reason for not recommending 
the option if adoption is not recommended. 
SEC. 882. REVIEW OF OBLIGATION AND EXPENDITURE THRESHOLDS. 
(a) PROCESS REVIEW.—Not later than one year after the date 
of the enactment of this Act, the Chief Management Officer of 
the Department of Defense, in coordination with the Chief Manage-
ment Officer of each military department, the Director of the Office 
of Performance Assessment and Root Cause Analysis, the Under 
Secretary of Defense (Comptroller), and the Comptrollers of the 
military departments, shall complete a comprehensive review of 
the use and value of obligation and expenditure benchmarks and 
propose new benchmarks or processes for tracking financial 
performance, including, as appropriate—