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novation programs’’ means the Defense Innovation 
Unit of the Department of Defense, AFWERX of 
the Air Force, and other programs sponsored by the 
Department of Defense, or any component thereof, 
with a focus on accelerating the adoption of emerg-
ing technologies for mission-relevant applications or 
innovation. 
(3) MILITARY DEPARTMENT.—The term ‘‘mili-
tary department’’ has the meaning given such term 
in section 101(a) of title 10, United States Code. 
SEC. 804. PILOT PROGRAM ON PAYMENT OF COSTS FOR DE-
NIED GOVERNMENT ACCOUNTABILITY OF-
FICE BID PROTESTS. 
(a) PILOT PROGRAM REQUIRED.—The Secretary of 
Defense shall carry out a pilot program to determine the 
effectiveness of requiring contractors to reimburse the De-
partment of Defense for costs incurred in processing cov-
ered protests. 
(b) DURATION.—The pilot program under subsection 
(a) shall— 
(1) begin on the date that is two years after the 
date of the enactment of this Act; and 
(2) end on the date that is five years after the 
date of the enactment of this Act. 
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(c) REPORT.—Not later than 90 days after the date 
on which the pilot program under subsection (a) ends, the 
Secretary shall submit to the Committees on Armed Serv-
ices of the House of Representatives and the Senate a re-
port assessing the feasibility of making permanent such 
pilot program. 
(d) DEFINITIONS.—In this section: 
(1) COVERED
PROTEST.—The term ‘‘covered 
protest’’ means a bid protest that is a final bid pro-
test and that was filed during the period beginning 
on October 1, 2025, and ending on September 30, 
2028, by a party with revenues in excess of 
$250,000,000 (based on fiscal year 2023 constant 
dollars) during the fiscal year immediately preceding 
the fiscal year in which such party filed such bid 
protest. 
(2) FINAL BID PROTEST.—The term ‘‘final bid 
protest’’ means a bid protest that was denied in an 
opinion issued by the Government Accountability Of-
fice and such denial— 
(A) has not been appealed and is no longer 
appealable because the time for taking an ap-
peal has expired; or 
(B) has been appealed and the appeals 
process for which is completed. 
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SEC. 805. PILOT PROGRAM FOR PROTOTYPE PROJECTS 
FOR ANYTHING-AS-A-SERVICE. 
(a) IN GENERAL.—Not later than one year after the 
enactment of this Act and subject to the availability of 
appropriations, the Secretary of Defense or any official 
designated by the Secretary of Defense, in coordination 
with each Secretary of a military department, shall estab-
lish a pilot program to enter into transactions to carry 
out prototype projects for Anything-as-a-Service using 
competitive multisourcing. 
(b) REQUIREMENTS.—Before entering into a trans-
action under this section, the Secretary shall— 
(1) develop criteria that technology-supported 
capabilities are delivered as a service must meet in 
order to be included in a prototype project; and 
(2) 
develop 
criteria 
for 
competitive 
multisourcing applicable to the pilot program estab-
lished under this section. 
(c) VALUE.—The value of a transaction for a proto-
type project carried out under this section shall not exceed 
$100,000,000. 
(d) TIMING.—The Secretary shall, to the extent prac-
ticable, enter into a transaction for a prototype project 
under this section not earlier than 60 days and not later 
than 100 days after the date on which the Secretary an-
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nounces an opportunity to participate in the pilot program 
established under this section. 
(e) EXEMPTION.—The requirements of sections 
3204(e)(1) and 3702 of title 10, United States Code, shall 
not apply with respect to a transaction for a prototype 
project under this section if the Secretary of Defense re-
ceives three or more minimally qualified offers for such 
transaction. 
(f) BRIEFING.—Not later than December 31, 2024, 
the Secretary of Defense shall provide a briefing to the 
congressional defense committees on the implementation 
of the pilot program. 
(g) REPORT.—Not later than 30 days after each ex-
ercise of authority under the pilot program, the Secretary 
of Defense shall submit to Congress a report on such exer-
cise. 
(h) DEFINITIONS.—In this section: 
(1) The term ‘‘Anything-as-a-Service’’ means 
model under which a technology-supported capability 
is provided to the Department of Defense as a serv-
ice rather than as a product, including such capabili-
ties as software, platforms, and infrastructure. 
(2) The term ‘‘competitive multisourcing’’ 
means a method to fulfill the requirements of a 
transaction for a prototype project entered into 
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under the pilot program established under this sec-
tion to carry out a prototype project by awarding 
such transaction to more than one offeror, of which 
one offeror shall be the primary awardee and any 
other offerors shall be secondary awardees prepared 
to take the place of the primary awardee under the 
transaction. 
(i) TERMINATION.— 
(1) PROTOTYPE PROJECTS.—The authority to 
carry out a prototype project under the pilot pro-
gram shall terminate not more than 24 months after 
the date of commencing such prototype project. 
(2) PILOT PROGRAM.—The authority to carry 
out the pilot program under this section shall termi-
nate on the date that is three years after the date 
of the enactment of this Act. 
SEC. 806. LOW-METHANE INTENSITY NATURAL GAS PILOT 
PROGRAM. 
(a) IN GENERAL.—The Director of the Defense Lo-
gistics Agency, in coordination with the Secretary of each 
military department (as such term is defined in section 
101(a) of title 10, United States Code), may establish a 
pilot program to demonstrate the feasibility of installa-
tions of the Department of Defense using certified low- 
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methane intensity natural gas, including demonstrating 
the quantities of such gas that are feasible. 
(b) ACQUISITION OF CERTIFIED LOW-METHANE IN-
TENSITY NATURAL GAS.—In carrying out the pilot pro-
gram, the Director shall select installations of the Depart-
ment for which the natural gas acquired for such installa-
tions shall be certified low-methane intensity natural gas. 
(c) DEPARTMENT INSTALLATIONS.— 
(1) LOCATION.—The Director may select only 
installations of the Department that are located 
within the continental United States to participate 
in the pilot program. 
(2) NUMBER.—In carrying out the pilot pro-
gram, the Director shall select not fewer than 5 in-
stallations of the Department to participate in the 
pilot program. 
(d) DURATION.—If the Director establishes the pilot 
program, the Director shall carry out the pilot program 
until the date determined by the Director that is not ear-
lier than two years after the date of the enactment of this 
Act and not later than five years after the date of the 
enactment of this Act. 
(e) DEFINITIONS.—In this section: 
(1) CERTIFIED LOW-METHANE INTENSITY NAT-
URAL GAS.—The term ‘‘certified low-methane inten-
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sity natural gas’’ means natural gas produced by fa-
cilities and through processes certified by an inde-
pendent, industry-recognized certifying entity as 
complying with low-methane intensity standards. 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Defense. 
(3) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Defense Logistics Agency. 
(4) LOW-METHANE
INTENSITY
STANDARDS.— 
The term ‘‘low-methane intensity standards’’ means 
industry-recognized standards— 
(A) for verifying, quantifying, and dimin-
ishing the unintentional release of methane dur-
ing the production of natural gas below the av-
erage amount of methane unintentionally re-
leased during such production; and 
(B) certification of compliance with which 
is commercially available from independent, in-
dustry-recognized certifying entities. 
(5) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the pilot program established under 
subsection (a). 
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SEC. 807. PROHIBITION ON CONTRACTING WITH PERSONS 
THAT HAVE BUSINESS OPERATIONS WITH 
THE GOVERNMENT OF THE RUSSIAN FED-
ERATION OR THE RUSSIAN ENERGY SECTOR. 
(a) PROHIBITION.—Except as provided under sub-
sections (b), (c), and (d), the Secretary of Defense may 
not enter into a contract for the procurement of goods 
or services with any person that has business operations 
with— 
(1) an authority of the Government of the Rus-
sian Federation; or 
(2) a fossil fuel company that operates in the 
Russian Federation, except if the fossil fuel company 
transports oil or gas— 
(A) through the Russian Federation for 
sale outside of the Russian Federation; and 
(B) that was extracted from a country 
other than the Russian Federation with respect 
to the energy sector of which the President has 
not imposed sanctions as of the date on which 
the contract is awarded. 
(b) EXCEPTIONS.— 
(1) IN GENERAL.—The prohibition under sub-
section (a) does not apply to a contract that the Sec-
retary of Defense and the Secretary of State jointly 
determine— 
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(A) is necessary— 
(i) for purposes of providing humani-
tarian assistance to the people of Russia; 
or 
(ii) for purposes of providing disaster 
relief and other urgent life-saving meas-
ures; 
(B) is vital to the military readiness, bas-
ing, or operations of the United States or the 
North Atlantic Treaty Organization; or 
(C) is vital to the national security inter-
ests of the United States. 
(2) NOTIFICATION
REQUIREMENT.—The Sec-
retary of Defense shall notify the appropriate con-
gressional committees of any contract entered into 
on the basis of an exception provided for under 
paragraph (1). 
(3) OFFICE OF FOREIGN ASSETS CONTROL LI-
CENSES.—The prohibition in subsection (a) shall not 
apply to a person that has a valid license to operate 
in Russia issued by the Office of Foreign Assets 
Control of the Department of the Treasury or is oth-
erwise authorized to operate in Russia by the Fed-
eral Government notwithstanding the imposition of 
sanctions. 
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(4) AMERICAN
DIPLOMATIC
MISSION
IN
RUS-
SIA.—The prohibition in subsection (a) shall not 
apply to contracts related to the operation and main-
tenance of the United States Government’s consular 
offices and diplomatic posts in Russia. 
(c) APPLICABILITY.—This section shall take effect on 
the date of the enactment of this Act and apply with re-
spect to any contract entered into on or after such effec-
tive date. 
(d) SUNSET.—This section shall terminate on the 
date on which the President submits to the appropriate 
congressional committees a certification in writing that 
contains a determination of the President that the Russian 
Federation— 
(1) has reached an agreement relating to the 
withdrawal of Russian forces and cessation of mili-
tary hostilities that is accepted by the free and inde-
pendent government of Ukraine; 
(2) poses no immediate military threat of ag-
gression to any North Atlantic Treaty Organization 
member; and 
(3) recognizes the right of the people of 
Ukraine to independently and freely choose their 
own government. 
(e) DEFINITIONS.—In this section: 
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(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Oversight and Re-
form, the Committee on Armed Services, and 
the Committee on Foreign Affairs of the House 
of Representatives; and 
(B) the Committee on Homeland Security 
and Governmental Affairs, the Committee on 
Armed Services, and the Committee on Foreign 
Relations of the Senate. 
(2) BUSINESS OPERATIONS.—The term ‘‘busi-
ness operations’’ means engaging in commerce in 
any form, including acquiring, developing, maintain-
ing, owning, selling, possessing, leasing, or operating 
equipment, facilities, personnel, products, services, 
personal property, real property, or any other appa-
ratus of business or commerce. 
(3) FOSSIL FUEL COMPANY.—The term ‘‘fossil 
fuel company’’ means a person that— 
(A) carries out oil, gas, or coal exploration, 
development, or production activities; 
(B) processes or refines oil, gas, or coal; or 
(C) transports, or constructs facilities for 
the transportation of, Russian oil, gas, or coal. 
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(4) GOVERNMENT OF THE RUSSIAN FEDERA-
TION.—The term ‘‘Government of the Russian Fed-
eration’’ includes the government of any political 
subdivision of Russia, and any agency or instrumen-
tality of the Government of the Russian Federation. 
For purposes of this paragraph, the term ‘‘agency or 
instrumentality of the Government of the Russian 
Federation’’ means an agency or instrumentality of 
a foreign state as defined in section 1603(b) of title 
28, United States Code, with each reference in such 
section to ‘‘a foreign state’’ deemed to be a reference 
to ‘‘Russia’’. 
(5) PERSON.—The term ‘‘person’’ means— 
(A) a natural person, corporation, com-
pany, business association, partnership, society, 
trust, or any other nongovernmental entity, or-
ganization, or group; 
(B) any governmental entity or instrumen-
tality of a government, including a multilateral 
development institution (as defined in section 
1701(c)(3) of the International Financial Insti-
tutions Act (22 U.S.C. 262r(c)(3))); and 
(C) any successor, subunit, parent entity, 
or subsidiary of, or any entity under common 
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ownership or control with, any entity described 
in subparagraph (A) or (B). 
SEC. 808. ORGANIZATIONAL CONFLICT OF INTERESTS RE-
LATING TO NATIONAL SECURITY AND FOR-
EIGN POLICY. 
(a) PROHIBITION RELATED CERTAIN CONTRACTS OR 
GRANTS.— 
(1) IN GENERAL.—The Secretary may not after 
the date of the enactment of this Act enter into, 
renew, or extend a contract with, or award a grant 
to, a covered consultancy. 
(2) DISCLOSURE.—Any individual or entity that 
submits an offer or bid for a contract to provide con-
sulting services to the Department of Defense shall 
disclose in such offer or bid any information relevant 
to the individual or entity with respect to the prohi-
bition under paragraph (1), including— 
(A) whether the individual or entity has 
entered into a contract with, or received grants 
or other financial awards from a covered entity 
in the five years prior to submitting the offer 
or bid; and 
(B) at the time the contract to provide 
consulting services to the Department will be 
entered into, whether— 
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HR 2670 RDS
(i) any contract entered into by the 
individual or entity with a covered entity 
will still be in effect; and 
(ii) the individual or entity will be re-
ceiving funds from, or have any unobli-
gated or unexpended funds received under, 
any grant or other financial award from a 
covered entity. 
(3) PENALTIES.— 
(A) IN GENERAL.—If the Secretary deter-
mines that a contractor of the Department 
failed to make the disclosure required by para-
graph (2), the Secretary shall— 
(i) terminate the applicable contract 
for cause; and 
(ii) initiate a suspension and debar-
ment proceeding with respect to the con-
tractor. 
(B) MAXIMUM LENGTH OF DEBARMENT.— 
The maximum length of a debarment of a con-
tractor under this paragraph shall be a period 
of 5 years. 
(b) CERTIFICATION.— 
(1) IN GENERAL.—After a determination by the 
Secretary that a company is a covered consultancy, 
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such company may submit to the Secretary a written 
and signed certification that— 
(A) the consultancy no longer is— 
(i) performing under a contract with a 
covered entity; 
(ii) carrying out activities under a 
grant received from a covered entity; or 
(iii) receiving funds, or have any un-
obligated or unexpended funds received, 
from a covered entity; and 
(B) will not receive or pursue a contract 
with a covered entity or a grant or other finan-
cial award from a covered entity— 
(i) during the term of a contract with 
the Department of Defense; or 
(ii) while receiving funds from the De-
partment of Defense, or obligating or ex-
pending any such funds. 
(2) STATUS CHANGE.—Upon the approval by 
the Secretary of a certification submitted under 
paragraph (1), a company is deemed to not be a cov-
ered consultancy until the expiration of the certifi-
cation under paragraph (3). 
(3) EXPIRATION.—A certification submitted by 
a company under paragraph (1) shall expire on the 
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HR 2670 RDS
earlier of the date on which the company, after sub-
mitting such certification enters into, extends, re-
news, or performs under a contract with a covered 
entity for consulting services. 
(c) GUIDANCE.—The Secretary, in consultation with 
the Secretary of Commerce, the Secretary of Homeland 
Security, the Secretary of the Treasury, the Director of 
National Intelligence, the Attorney General, the Secretary 
of State, and the heads of such other Executive agencies 
(as such term is defined in section 105 of title 5, United 
States Code) as determined appropriate by the Secretary, 
shall issue procurement policies for the Department of De-
fense as follows: 
(1) Policies to implement the prohibition under 
subsection (a)(1). 
(2) Best practices to avoid becoming covered 
consultancies under this section and for covered 
consultancies to end their status as such. 
(3) A policy containing the exact provisions and 
terms relating to the requirements of paragraphs (2) 
and (3) of subsection (a) to be included in solicita-
tions, contracts, and grants of the Department. 
(d) REVISION OF DEPARTMENT OF DEFENSE ACQUI-
SITION REGULATION.—Not later than one year after the 
date of the enactment of this Act, the Secretary shall re-
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vise the acquisition regulations of the Department of De-
fense to implement this section. 
(e) DEFINITIONS.—In this section: 
(1) CONSULTING SERVICES.—The term ‘‘con-
sulting services’’ has the meaning given the term 
‘‘advisory and assistance services’’ in section 2.101 
of the Federal Acquisition Regulation, except that— 
(A) the term does not include the services 
described in paragraph (3) of such section; and 
(B) each instance of the term ‘‘Federal’’ is 
replaced with ‘‘client’’. 
(2) COVERED CONSULTANCY.—The term ‘‘cov-
ered consultancy’’ means a company that, itself or 
any subsidiary or affiliate thereof, in immediately 
preceding one year period entered into, extended, re-
newed, or performed under a contract with a covered 
entity for consulting services. 
(3) COVERED ENTITY.—The term ‘‘covered en-
tity’’ means any of the following: 
(A) The Government of the People’s Re-
public of China. 
(B) The Chinese Communist Party. 
(C) The People’s Liberation Army, the 
Ministry of State Security, or other security 
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HR 2670 RDS
service or intelligence agency of the People’s 
Republic of China. 
(D) Any entity on the Non-SDN Chinese 
Military-Industrial Complex Companies List 
(NS–CMIC–List) maintained by the Office of 
Foreign Assets Control of the Department of 
the Treasury under Executive Order No. 14032 
(86 Fed. Reg. 30145; relating to addressing the 
threat from securities investments that finance 
certain companies of the People’s Republic of 
China), or any successor order. 
(E) Any Chinese military company identi-
fied by the Secretary of Defense pursuant to 
section 1237(b) of the Strom Thurmond Na-
tional Defense Authorization Act for Fiscal 
Year 1999 (Public Law 105–261; 50 U.S.C. 
1701 note). 
(F) Any Chinese state-owned entity or 
other entity under the ownership, or control, di-
rectly or indirectly, of the Government of the 
People’s Republic of China or the Chinese Com-
munist Party that is engaged in one or more 
national security industries. 
(G) The Government of the Russian Fed-
eration, any Russian state-owned entity, or any 
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HR 2670 RDS
entity sanctioned by the Secretary of the Treas-
ury under Executive Order No. 13662 titled 
‘‘Blocking Property of Additional Persons Con-
tributing to the Situation in Ukraine’’(79 Fed. 
Reg. 16169). 
(H) The government or any state-owned 
entity of any country if the Secretary of State 
determines that such government has repeat-
edly provided support for acts of international 
terrorism pursuant to— 
(i) section 1754(c)(1)(A) of the Ex-
port Control Reform Act of 2018 (50 
U.S.C. 4318(c)(1)(A)); 
(ii) section 620A of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2371); 
(iii) section 40 of the Arms Export 
Control Act (22 U.S.C. 2780); or 
(iv) any other provision of law. 
(I) Any entity included on any of the fol-
lowing lists maintained by the Department of 
Commerce— 
(i) the Entity List set forth in Supple-
ment No. 4 to part 744 of the Export Ad-
ministration Regulations; 
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(ii) the Denied Persons List as de-
scribed in section 764.3(a)(2) of the Ex-
port Administration Regulations; and 
(iii) the Unverified List set forth in 
Supplement No. 6 to part 744 of the Ex-
port Administration Regulations. 
(J) The Military End User List set forth 
in Supplement No. 7 to part 744 of the Export 
Administration Regulations. 
(4) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means the regulations set forth in subchapter C of 
chapter VII of title 15, Code of Federal Regulations. 
(5) NATIONAL SECURITY INDUSTRY.—The term 
‘‘national security industry’’ means— 
(A) a military-related industry; 
(B) semiconductor production; 
(C) researching or commercializing quan-
tum computing; 
(D) producing products or services that 
use artificial intelligence; 
(E) the biotechnology industry; 
(F) the cybersecurity industry; or 
(G) the mining, processing, or refining of 
critical minerals (as such term is defined in sec-
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tion 7002(a) of the Energy Act of 2020 (30 
U.S.C. 1606(a))) for use by a covered entity. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Defense. 
SEC. 809. RESEARCH, DEVELOPMENT, TESTING, AND EVAL-
UATION CONTRACT COST SHARING. 
Notwithstanding any other provision of law, for any 
contract that is awarded under or pursuant to a provision 
of this Act for, in whole or in part, research, development, 
testing, or evaluation activities, not less than 25 percent 
of the cost of such activities under such contract must be 
provided by a non-Federal source. 
SEC. 810. PROHIBITION AND REPORT ON CONTRACTS FOR 
ONLINE TUTORING SERVICES. 
(a) PROHIBITION.—The Secretary of Defense may 
not enter into a contract for online tutoring services which 
could result in personal data of citizens of the United 
States being transferred to the control of the People’s Re-
public of China. 
(b) REPORT.—The Secretary of Defense shall submit 
to the congressional defense committees a report on the 
risks of personal data of citizens of the United States 
being transferred to the control of the People’s Republic 
of China pursuant to any contracts for online tutoring 
services of the Department of Defense in progress. 
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SEC. 811. PROHIBITION OF THE DEPARTMENT OF DEFENSE 
PROCUREMENT RELATED TO ENTITIES IDEN-
TIFIED AS CHINESE MILITARY COMPANIES 
OPERATING IN THE UNITED STATES IN AC-
CORDANCE WITH SECTION 1260H OF THE WIL-
LIAM M. THORNBERRY NATIONAL DEFENSE 
AUTHORIZATION ACT FOR FISCAL YEAR 2021. 
(a) PROHIBITION ON USE OR PROCUREMENT.— 
(1) IN GENERAL.—Except as provided under 
subsection (d)(1), the Secretary may not— 
(A) enter into, renew, or extend a contract 
for the procurement of goods, services, or tech-
nology with an entity described in paragraph 
(2); or 
(B) enter into, renew, or extend a contract 
for the procurement of goods services, or tech-
nology that include goods, services, or tech-
nology produced or developed by an entity de-
scribed in paragraph (2). 
(2) ENTITIES DESCRIBED.—An entity described 
in this paragraph is— 
(A) an entity that is identified in the an-
nual list the Department of Defense publishes 
of Chinese military companies operating in the 
United States in pursuant to section 1260H of 
the William M. (Mac) Thornberry National De-
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fense Authorization Act for Fiscal Year 2021 
(10 U.S.C. 113 note); 
(B) any entity subject to the control of an 
entity described in subparagraph (A); or 
(C) any individual working for or on behalf 
of an entity described in subparagraph (A) or 
(B). 
(3) LIMITATION ON APPLICABILITY.—Nothing 
in paragraph (1) shall prohibit the Secretary from 
entering into, renewing, or extending a contract for 
the procurement of goods, services, or technology to 
provide a service that connects to the facilities of a 
third-party, including backhaul, roaming, or inter-
connection arrangements. 
(4) GUIDANCE.— 
(A) ENTITY PROHIBITION.—Not later than 
180 days after the enactment of this Act, the 
Secretary shall issue procurement policies and 
other guidance for implementation of the prohi-
bitions in paragraph (1)(A) for the Department 
of Defense. 
(B) GOODS, SERVICES, AND TECHNOLOGY 
PROHIBITION.—Not later than 545 days after 
the enactment of this Act, the Secretary shall 
issue procurement policies and other guidance 
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for the implementation of the prohibitions in 
paragraph (1)(B) for the Department of De-
fense, including— 
(i) best practices to avoid being sub-
ject to the prohibitions described in para-
graph (1)(B); and 
(ii) technical support to assist affected 
businesses, institutions and organizations 
as is reasonably necessary for those af-
fected entities to comply with this section, 
including the creation of a supply chain 
mapping tool software made available with-
out cost to affected entities. 
(b) EFFECTIVE DATES.—The prohibition under sub-
section (a)(1)(A) shall take effect one year after the date 
of the enactment of this Act, and the prohibitions under 
subsections (a)(1)(B) shall take effect two years after the 
date of the enactment of this Act. 
(c) WAIVER AUTHORITY.— 
(1) IN
GENERAL.—The Secretary may waive 
the requirements under subsection (a) with respect 
to an entity that requests such a waiver if the entity 
seeking the waiver— 
(A) provides to the Secretary a compelling 
justification for the additional time to imple-
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ment the requirements under such subsection, 
as determined by the Secretary of Defense; and 
(B) provides to the Secretary a phase-out 
plan to eliminate goods, services, or technology 
produced or developed by an entity described in 
subsection (a)(2) from the systems of the enti-
ty. 
(2) DURATION.—A waiver granted under para-
graph (1) may be for a period of not more than two 
years after the effective dates described in sub-
section (c). 
(d) EXCEPTION.—The President shall not be re-
quired to apply or maintain the prohibition under sub-
section (a) for activities subject to the reporting require-
ments under title V of the National Security Act of 1947 
(50 U.S.C. 3091 et seq.), or to any authorized intelligence 
activities of the United States. 
(e) DEFINITIONS.—In this section: 
(1) CONTROL.—The term ‘‘control’’ has the 
meaning given that term in part 800.208 of title 31, 
Code of Federal Regulations or any successor regu-
lations. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Defense. 
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Subtitle B—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 821. MODIFICATION TO TRUTHFUL COST OR PRICING 
DATA SUBMISSIONS AND REPORT. 
Section 3705(b)(2)(B) of title 10, United States 
Code, is amended— 
(1) in the second sentence, by inserting ‘‘and 
shall identify such offerors that incur a delay greater 
than 200 days in submitting such cost or pricing 
data’’ after ‘‘should-cost analysis’’; and 
(2) by amending the third sentence to read as 
follows: ‘‘The Secretary of Defense shall include a 
public notation on such offerors in the system used 
by the Federal Government to monitor or record 
contractor integrity and performance.’’. 
SEC. 822. COMPETITION REQUIREMENTS FOR PURCHASES 
FROM FEDERAL PRISON INDUSTRIES. 
(a) COMPETITION REQUIREMENTS FOR PURCHASES 
FROM FEDERAL PRISON INDUSTRIES.—Section 3905 of 
title 10, United States Code, is amended by striking sub-
sections (a) and (b) and inserting the following new sec-
tions: 
‘‘(a) MARKET
RESEARCH.—Before purchasing a 
product listed in the latest edition of the Federal Prison 
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Industries catalog published under section 4124(d) of title 
18, the Secretary of Defense shall conduct market re-
search to determine whether such product— 
‘‘(1) is comparable to products available from 
the private sector; and 
‘‘(2) best meets the needs of the Department of 
Defense in terms of price, quality, and time of deliv-
ery. 
‘‘(b) COMPETITION REQUIREMENT.—If the Secretary 
determines that a Federal Prison Industries product is not 
comparable to products available from the private sector 
and does not best meet the needs of the Department of 
Defense in terms of price, quality, or time of delivery, the 
Secretary shall use competitive procedures or make an in-
dividual purchase under a multiple award contract for the 
procurement of the product. In conducting such a competi-
tion or making such a purchase, the Secretary shall con-
sider a timely offer from Federal Prison Industries.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on February 1, 2024. 
SEC. 823. MODIFICATION OF APPROVAL AUTHORITY FOR 
HIGH DOLLAR OTHER TRANSACTIONS FOR 
PROTOTYPES. 
Section 4022 of title 10, United States Code, is 
amended— 
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(1) in subsection (a)(2)(C)(i)(I), by inserting 
after ‘‘subsection (d)’’ the following: ‘‘were met for 
the prior transaction for the prototype project that 
provided for the award of the follow-on production 
contract or transaction, and the requirements of 
subsection (f)’’; and 
(2) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(3) The requirements of this subsection do not 
apply to follow-on production contracts or trans-
actions under subsection (f).’’. 
SEC. 824. CLARIFICATION OF AUTHORITY OF THE DEPART-
MENT OF DEFENSE TO CARRY OUT CERTAIN 
PROTOTYPE PROJECTS. 
Section 4022(i) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) AUTHORITY.—The authority of this sub-
section may be exercised to conduct prototype 
projects using— 
‘‘(A) funds available for research, develop-
ment, test and evaluation; 
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‘‘(B) appropriations for operation and 
maintenance; or 
‘‘(C) appropriations for military construc-
tion.’’; 
(3) in paragraph (3), as so redesignated, by in-
serting ‘‘using appropriations for military construc-
tion’’ after ‘‘carrying out prototype projects’’; and 
(4) in subparagraph (4)(A), as so redesignated, 
by inserting ‘‘using appropriations for military con-
struction’’ after ‘‘prototype projects’’. 
SEC. 825. ACQUISITION OF SENSITIVE MATERIAL PROHIBI-
TION EXCEPTION AMENDMENT. 
Section 4872(c) of title 10, United States Code, is 
amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘Subsection (a)’’ and inserting ‘‘Subsection 
(a)(1)’’; and 
(2) in paragraph (1)— 
(A) by striking ‘‘Defense determines that 
covered materials’’ and inserting the following: 
‘‘Defense— 
‘‘(A) identifies a specific end item for 
which a specific covered material’’; 
(B) by striking the period at the end and 
inserting a semicolon; and 
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(C) by adding at the end the following new 
subparagraphs: 
‘‘(B) determines that no production capac-
ity for such specific covered material exists and 
is available outside of the covered nations; and 
‘‘(C) waives subsection (a)(1) for such spe-
cific end item and such specific covered mate-
rial for a period not exceeding 36 months.’’. 
SEC. 826. MODIFICATION TO ACQUISITION AUTHORITY OF 
THE SENIOR OFFICIAL WITH PRINCIPAL RE-
SPONSIBILITY 
FOR 
ARTIFICIAL 
INTEL-
LIGENCE AND MACHINE LEARNING. 
Section 808 of the William M. (Mac) Thornberry Na-
tional Defense Authorization Act for Fiscal Year 2021 (10 
U.S.C. 4001 note) is amended— 
(1) in subsection (d)— 
(A) by striking ‘‘$75,000,000’’ and insert-
ing ‘‘$125,000,000’’; and 
(B) by striking ‘‘in each of fiscal years 
2021, 2022, 2023, 2024, and 2025’’ and insert-
ing ‘‘in each of fiscal years 2024 through 
2029’’; and 
(2) in subsection (f), by striking ‘‘October 1, 
2025’’ and inserting ‘‘October 1, 2029’’. 
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SEC. 827. AMEND PROHIBITION ON CONTRACTING WITH 
ENTITIES OPERATING CERTAIN UNMANNED 
AIRCRAFT SYSTEMS. 
Section 848 of the National Defense Authorization 
Act for Fiscal Year 2020 (10 U.S.C. 4871 note), as 
amended by section 817 of the James M. Inhofe National 
Defense Authorization Act for Fiscal Year 2023 (Public 
Law 117-263; 136 Stat. 2707), is further amended in sub-
section (b) by striking ‘‘in the performance of a Depart-
ment of Defense contract’’. 
SEC. 828. AVOIDANCE OF USE OF LOWEST PRICE TECH-
NICALLY ACCEPTABLE SOURCE SELECTION 
PROCESS FOR CERTAIN LOGISTICS SERV-
ICES. 
Section 813(c) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 
3241 note prec.) is amended— 
(1) in paragraph (2), by striking ‘‘or’’ and the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) fuel and fuel-related services, if such serv-
ices are, or reasonably could be, owned or provided 
by an entity owned or controlled, directly or indi-
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rectly, by the government of any adversary listed in 
the 2022 National Defense Strategy.’’. 
SEC. 829. MODIFICATION AND EXTENSION OF TEMPORARY 
AUTHORITY 
TO 
MODIFY 
CERTAIN 
CON-
TRACTS AND OPTIONS BASED ON THE IM-
PACTS OF INFLATION. 
Section 1 of Public Law 85–804 (50 U.S.C. 1431) 
is amended— 
(1) in subsection (b), by adding at the end the 
following new sentence: ‘‘If any such amounts are so 
specifically provided, the Secretary may use them for 
such purposes.’’; and 
(2) in subsection (e), by striking ‘‘December 31, 
2023’’ and inserting ‘‘December 31, 2024’’. 
SEC. 830. MODIFICATION OF CONTRACTS AND OPTIONS TO 
PROVIDE ECONOMIC PRICE ADJUSTMENTS. 
(a) AUTHORITY.—Amounts authorized to be appro-
priated by this Act for the Department of Defense may 
be used to modify the terms and conditions of a contract 
or option, without consideration, to provide an economic 
price adjustment consistent with sections 16.203–1 and 
16.203–2 of the Federal Acquisition Regulation during 
the relevant period of performance for that contract or op-
tion and as specified in section 16.203–3 of the Federal 
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Acquisition Regulation, subject to the availability of ap-
propriations. 
(b) GUIDANCE.—Not later than 30 days after the 
date of the enactment of this Act, the Under Secretary 
of Defense for Acquisition and Sustainment shall issue 
guidance implementing the authority under this section. 
SEC. 831. PILOT PROGRAM ON THE USE OF ACQUISITION 
AUTHORITY FOR OFFICE OF NAVAL RE-
SEARCH TO AID IN TECHNOLOGY TRANSI-
TION. 
(a) AUTHORITY.—The Secretary of the Navy shall 
delegate to the Chief of Naval Research acquisition au-
thority to enter into contracts or other agreements for the 
commercialization of a prototype of the Department of the 
Navy. 
(b) AMOUNT.—A single contract or other agreement 
entered into under this section may not exceed 
$10,000,000. 
(c) APPLICATION.—An applicant desiring a contract 
or other agreement under this section submit an applica-
tion to the Secretary of the Navy at such time, in such 
manner, and containing such information as the Secretary 
may require. 
(d) BRIEFING.—Not later than December 31, 2024, 
the Chief of Naval Research shall provide to the congres-
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sional defense committees a briefing on the exercise of the 
authority under this section and any related policy or im-
plementation issues. 
(e) REPORT.—Each time the Chief of Naval Research 
exercises the authority under this section, the Chief shall 
submit to the congressional defense committees a notifica-
tion on such exercise. 
(f) TERMINATION.—The Chief of Naval Research 
may not exercise the authority under this section and may 
not enter into any new contracts or other agreements 
under this section on or after the date that is five years 
after the date of the enactment of this Act. The perform-
ance on any contract or other agreement entered into be-
fore such date may continue according to the terms of 
such contract or other agreement. 
SEC. 832. PROHIBITION ON COMPUTERS OR PRINTERS AC-
QUISITIONS INVOLVING ENTITIES OWNED OR 
CONTROLLED BY CHINA. 
(a) IN GENERAL.—The Secretary of Defense may not 
acquire any computer or printer if the manufacturer, bid-
der, or offeror is a covered Chinese entity. 
(b) APPLICABILITY.—This section shall apply only 
with respect to contracts or other agreements entered into, 
renewed, or extended after the date of the enactment of 
this Act. 
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(c) DEFINITIONS.—In this section: 
(1) COVERED
CHINESE
ENTITY.—The term 
‘‘covered Chinese entity’’ means an entity that the 
Secretary of Defense, in consultation with the Direc-
tor of the National Intelligence or the Director of 
the Federal Bureau of Investigation, determines to 
be an entity owned, controlled, directed, or subcon-
tracted by, affiliated with, or otherwise connected to, 
the government of the People’s Republic of China. 
(2) MANUFACTURER.—The term ‘‘manufac-
turer’’ means— 
(A) the entity that transforms raw mate-
rials, miscellaneous parts, or components into 
the end item; 
(B) any entity that subcontracts with the 
entity described in subparagraph (A) for the en-
tity described in such subparagraph to trans-
form raw materials, miscellaneous parts, or 
components into the end item; 
(C) any entity that otherwise directs the 
entity described in subparagraph (A) to trans-
form raw materials, miscellaneous parts, or 
components into the end item; or 
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(D) any parent company, subsidiary, or af-
filiate of the entity described in subparagraph 
(A). 
SEC. 833. MODIFICATIONS TO DATA, POLICY, AND REPORT-
ING ON THE USE OF OTHER TRANSACTIONS. 
Section 8739 of the John S. McCain National De-
fense Authorization Act for Fiscal Year 2019 (10 U.S.C. 
2371 note) is amended— 
(1) in subsection (c)(1), in the matter preceding 
subparagraph (A), by striking ‘‘December 31, 2019, 
and annually thereafter through December 31, 
2023,’’ and inserting ‘‘December 31, 2024, and an-
nually thereafter through December 31, 2028,’’; and 
(2) by adding at the end the following: 
‘‘(d) COMPTROLLER GENERAL REPORT ON USE OF 
OTHER TRANSACTION AUTHORITY.—No later than 180 
days after the date of the enactment of this subsection, 
the Comptroller General of the United States shall submit 
to the Committees on Armed Services of the House of 
Representatives and the Senate a report on the use of 
transactions authorized under sections 4021 and 4022 of 
title 10, United States Code, including— 
‘‘(1) the extent to which such transactions are 
used in accordance with policy and guidance related 
to the use of such transactions; 
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‘‘(2) the total number of transactions for each 
fiscal year made to nontraditional defense contrac-
tors (as defined in section 3014 of title 10, United 
States Code); 
‘‘(3) a summary of such transactions to which 
the Department of Defense is a participant for 
which performance has not been completed on the 
date of submission of such report, including— 
‘‘(A) a description of the entity or agency 
responsible for any consortium; 
‘‘(B) a list, including the name, of each 
member of such consortium, including the per-
centage of such members who are nontradi-
tional defense contractors for each such consor-
tium; and 
‘‘(C) for fiscal years 2022 and 2023— 
‘‘(i) the total amount awarded under 
such transactions to each such consortium; 
and 
‘‘(ii) the total amount awarded under 
such transactions to members who are 
nontraditional defense contractors for each 
such consortium; and 
‘‘(4) for fiscal years 2022 and 2023, a list of 
contractors who have been awarded more than 
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HR 2670 RDS
$20,000,000 under such transactions, including a 
description of each such award, the number of 
awards made, and the total dollar amount award-
ed.’’. 
SEC. 834. STRENGTHENING TRUTHFUL COST OR PRICING 
DATA REQUIREMENTS. 
(a) REQUIRED COST OR PRICING DATA AND CER-
TIFICATION.—Section 3702(a)(1) of title 10, United 
States Code, is amended by striking ‘‘only expected to re-
ceive one bid shall be required’’ and inserting ‘‘only ex-
pected to have one offeror, or for which award of a cost- 
reimbursement contract is contemplated regardless of the 
number of offers received, shall be required’’. 
(b) EXCEPTIONS.—Section 3703(a) of title 10, 
United States Code, is amended— 
(1) in paragraph (1)(A), by striking ‘‘adequate 
competition’’ and all that follows through ‘‘bids’’ and 
inserting ‘‘adequate price competition, except for the 
award of a cost-reimbursement contract, that results 
in at least two responsive and viable competing 
offerors’’; and 
(2) in paragraph (2), by inserting ‘‘based on 
adequate price competition that results in at least 
two responsive and responsible offers’’ after ‘‘com-
mercial service’’. 
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(c) CONFORMING AMENDMENT RELATED TO CIVIL-
IAN CONTRACTS.—Section 3503(a)(2) of title 41, United 
States Code, is amended by inserting ‘‘based on adequate 
price competition that results in at least two responsive 
and responsible offers’’ after ‘‘commercial service’’. 
Subtitle C—Domestic Sourcing 
Requirements 
SEC. 841. REQUIRE FULL DOMESTIC PRODUCTION OF 
FLAGS OF THE UNITED STATES ACQUIRED BY 
THE DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 4862 of title 10, United 
States Code, is amended— 
(1) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(5) A flag of the United States.’’; and 
(2) in subsection (h)— 
(A) in paragraph (1), by striking ‘‘Sub-
section (a)’’ and inserting ‘‘Except with respect 
to purchases of flags of the United States, sub-
section (a)’’; 
(B) by redesignating paragraph (2) as 
paragraph (3); and 
(C) by inserting after paragraph (1) the 
following new paragraph: 
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‘‘(2)(A)(i) Except as provided by subparagraph 
(B), subsection (a) does not apply to purchases of 
flags of the United States for amounts not greater 
than $10,000. 
‘‘(ii) A proposed procurement in an 
amount greater than $10,000 may not be di-
vided into several purchases or contracts for 
lesser amounts in order to qualify for the excep-
tion under clause (i). 
‘‘(B) The Secretary of Defense may waive sub-
section (a) with respect to a purchase of flags of the 
United States in an amount greater than $10,000 if 
the Secretary of Defense determines such waiver ap-
propriate. 
‘‘(C) This section is applicable to contracts and 
subcontracts for the procurement of flags of the 
United States notwithstanding section 1905 of title 
41.’’. 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply only with respect to agreements en-
tered into on or after the date of the enactment of this 
Act. 
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SEC. 842. INCLUSION OF TITANIUM POWDER IN DEFINITION 
OF SPECIALTY METALS EXEMPTED FROM 
CERTAIN DOMESTIC SOURCING REQUIRE-
MENTS. 
Section 4863(l)(3) of title 10, United States Code, 
is amended by inserting ‘‘, titanium powder,’’ after ‘‘tita-
nium’’. 
SEC. 843. AMEND REQUIREMENT TO BUY CERTAIN METALS 
FROM AMERICAN SOURCES. 
Section 4863 of title 10, United States Code, as 
amended by section 842, is further amended— 
(1) in subsection (d)— 
(A) in paragraph (1)(B), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) any specialty metal procured as mill prod-
uct or incorporated into a component other than an 
end item pursuant to this subsection shall be melted 
or produced— 
‘‘(A) in the United States; 
‘‘(B) in the country from which the mill 
product or component is procured; or 
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‘‘(C) in another country covered under 
subparagraph (1)(B).’’; 
(2) by redesignating subsections (l) and (m) as 
subsections (m) and (n), respectively; and 
(3) by inserting after subsection (k) the fol-
lowing new subsection: 
‘‘(l) PROVENANCE OF AEROSPACE-GRADE METALS.— 
(1) The Secretary of Defense shall require that, for any 
system or component for which the provenance of mate-
rials must be tracked to comply with safety regulations 
concerning flight, the supplier of such system or compo-
nent shall inform the government if any of the materials 
were known to be manufactured or processed in— 
‘‘(A) China; 
‘‘(B) Iran; 
‘‘(C) North Korea; or 
‘‘(D) Russia. 
‘‘(2) Not later than March 31 of each year, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report indicating how much specialty metal 
has been acquired and placed into systems of the Depart-
ment of Defense from the countries described in para-
graph (1).’’. 
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SEC. 844. MODIFICATION TO MISCELLANEOUS LIMITA-
TIONS ON THE PROCUREMENT OF GOODS 
OTHER THAN UNITED STATES GOODS. 
Section 4864(a)(3) of title 10, United States Code, 
is amended by— 
(1) striking ‘‘large medium-speed diesel en-
gines.’’ and inserting ‘‘the following components:’’; 
and 
(2) adding at the end the following new sub-
paragraphs: 
‘‘(A) Large medium-speed diesel engines. 
‘‘(B) Propulsion system components (in-
cluding reduction gears and propellers). 
‘‘(C) Components (including alternators, 
diesel engines, and steam turbines) used to gen-
erate electricity to power the systems of a vessel 
(excluding propulsion systems).’’. 
SEC. 845. PROCUREMENT OF COVERED HEARING PROTEC-
TION DEVICES. 
(a) IN GENERAL.—The Secretary of Defense, in co-
ordination with the head of the Hearing Center of Excel-
lence (established pursuant to section 721 of the Duncan 
Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110-417)), may enter into one or 
more contracts to procure covered hearing protection de-
vices for all members of the Armed Forces. 
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(b) PRIORITIZATION.—Under a contract described in 
subsection (a), the Secretary shall prioritize award of such 
contract to offerors that— 
(1) are globally headquartered in the conti-
nental United States; 
(2) are majority owned and operated by United 
States citizens. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘covered hearing protection de-
vice’’ means a completely in canal active hearing 
protection device— 
(A) that is a commercially available off- 
the-shelf item (as defined in section 104 of title 
41, United States Code); 
(B) with a minimum noise reduction rating 
of 25 decibels and a maximum output not to ex-
ceed 80 decibels; and 
(C) that has been previously identified, 
tested, and qualified by the Hearing Center of 
Excellence for procurement by the Department 
of Defense. 
SEC. 846. SENSE OF CONGRESS RELATING TO RUBBER SUP-
PLY. 
It is the sense of Congress that the Department of 
Defense should take all appropriate action to lessen our 
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military’s dependence on adversarial nations for the pro-
curement of strategic and critical materials, and that one 
such material in short supply according to the most recent 
report from Defense Logistics Agency Strategic Material 
is natural rubber, undermining our national security and 
jeopardizing the military’s ability to rely on a stable source 
of natural rubber for tire manufacturing and production 
of other goods. Accordingly, the Secretary is directed to 
take all appropriate action, pursuant with the authority 
provided by the Strategic and Critical Materials Stock Pil-
ing Act (50 U.S.C. 98a et seq.), to engage in activities 
that may include stockpiling, but shall also include re-
search and development aspects for increasing the domes-
tic supply of natural rubber. 
Subtitle D—Provisions Relating to 
Programs for Accelerating Ac-
quisition 
SEC. 851. PILOT PROGRAM FOR RECURRING AWARDS FOR 
PRODUCTION, INVESTMENT, AND DEPLOY-
MENT THROUGH COMPETITIONS. 
(a) ESTABLISHMENT.—The Secretary of Defense 
shall establish a pilot program to acquire through repeated 
competition attritable systems that solve urgent oper-
ational needs in order to incentivize sustainable produc-
tion, rapid deployment, and iterative improvements. 
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(b) COMPETITIONS.— 
(1) IN
GENERAL.—Under the pilot program, 
competition managers shall, in accordance with this 
subsection, conduct competitions with respect to ur-
gent operational needs under which the competition 
managers shall rapidly solicit, evaluate, and select 
proposed solutions. 
(2) REQUIREMENTS AND DESIGN.— 
(A) STAKEHOLDER
PARTICIPATION.—The 
Secretary shall ensure that each competition 
conducted under the pilot program is aligned 
with an operational priority of one or more 
combatant commands, and that the relevant 
combatant commanders have an opportunity to 
participate in the design of the competition and 
the evaluation criteria to be used. 
(B) 
OPERATIONAL
NEED
DETERMINA-
TION.—Competitions conducted under this pilot 
program shall address urgent operational needs 
as defined by the Secretary, in consultation 
with the Chairman of the Joint Chiefs of Staff 
and, as determined appropriate by the Sec-
retary, Defense Agencies (as defined in section 
101(a) of title 10, United States Code), the 
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military services, and entities in the private sec-
tor. 
(C) TIMING.—The Secretary shall ensure 
that each competition is executed to facilitate 
the award of a production contract or agree-
ment not later than 15 days after completion of 
the competition. 
(D) COMPETITION
FOCUS.—Competition 
managers shall employ evaluation and selection 
processes that emphasizes effectiveness, trans-
parency, and speed to deploy when conducting 
competitions under the pilot program. 
(E) TECHNOLOGY
LEVEL
FOCUS.—Com-
petitions conducted under the pilot program 
shall focus on proposed solutions at technology 
readiness levels equal to or more advanced than 
levels corresponding to Technology Readiness 
Level 7 or Technology Readiness Level 8. 
(F) INAPPLICABILITY OF JOINT CAPABILI-
TIES INTEGRATION AND DEVELOPMENT SYSTEM 
MANUAL.—Competitions conducted under the 
pilot program shall not be subject to the Joint 
Capabilities Integration and Development Sys-
tem Manual. 
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(3) SELECTION.—When conducting a competi-
tion under the pilot program, the competition man-
ager shall select the best solution for the relevant ur-
gent operational need. 
(4) REPEATED COMPETITION.— 
(A) IN GENERAL.—Not later than 2 years 
after a competition under the pilot program 
with respect to an urgent operational need, a 
subsequent competition shall be conduct with 
respect to such urgent operational need unless 
the Secretary determines that a subsequent 
competition with respect to such urgent oper-
ational need is unwarranted and submits to the 
relevant committees a written justification for 
such determination. 
(B) TIMING.—The Secretary shall consider 
the nature of each relevant urgent operational 
need and the circumstances of performance and 
production that resulted from the initial or pre-
ceding competition when determining the timing 
of a subsequent competition under subpara-
graph (A). 
(5) INITIAL COMPETITIONS.— 
(A) IN GENERAL.—The first two competi-
tions carried out the pilot program must be 
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with respect to solving one of the following ur-
gent operational need: 
(i) Short-range air defense. 
(ii) Tactical precision strike. 
(B) INITIAL COMPETITION CRITERIA.—In 
addition to any other criteria for the selection 
of a proposed solution under this section, a pro-
posed solution to either of the first two com-
petitions carried out under the pilot program 
must demonstrate an ability— 
(i) to offer multiple kinetic or non-ki-
netic effects options; 
(ii) to identify individual threats or 
groups of threats and, in each case, to 
track, target, and deploy effects options to 
engage those threats; 
(iii) to provide material benefits to the 
Department of Defense, including cost sav-
ings or more effective use of personnel; 
(iv) in the case of a competition seek-
ing to address the urgent operational need 
described in subparagraph (A)(i)— 
(I) to destroy, neutralize, or 
deter low altitude air threats; 
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(II) to defend fixed and semi- 
fixed assets; and 
(III) to maneuver forces; and 
(v) in the case of a competition seek-
ing to address the urgent operational need 
described in subparagraph (A)(ii)— 
(I) to engage targets at ranges of 
20 to 100 miles; and 
(II) to provide surface-to-surface 
effects launched from and targeted at 
ground-based, sea-based, or littoral lo-
cations. 
(6) COMPETITION
LIMIT.—Not more than 8 
competitions per year may be carried out under the 
pilot program. 
(c) AWARDS.— 
(1) IN
GENERAL.—The winning offeror of a 
successful competition shall be awarded a contract 
or other agreement, including a transaction other 
than a contract, cooperative agreement, or grant, 
under which the Department of Defense, or relevant 
component thereof, may acquire the proposed solu-
tion of such winning offeror for such competition. 
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(2) DESIGN AND TERMS.—Except as provided 
in this section, a contract or other agreement award-
ed under this subsection shall— 
(A) be designed to enable the proposed so-
lution to be produced or provided at a scale and 
on a timeline that maximizes the likelihood of 
that the solutions will successfully address the 
urgent operational challenge; 
(B) prioritize speed to award; 
(C) provide for subsequent competitions in 
accordance with this section; and 
(D) limit terms and conditions to those re-
quired by law. 
(3) MINIMUM AWARD AMOUNT.—Subject to the 
availability of appropriations, the total amount of 
funding provided for an award under this subsection 
shall not be less than $50,000,000, unless the Sec-
retary or the Secretary’s designee approves a lesser 
amount of funding and certifies to the relevant com-
mittees that such lesser amount is sufficient to ad-
dress the relevant urgent operational need and meet 
the general and specific characteristics applicable to 
the competition. 
(4) MULTIPLE AWARDS.—If more than one of-
feror meets the objectives of the competition, more 
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than one contract or other agreement may be award-
ed, as determined appropriate by the Secretary. 
(5) AUTHORITIES.—Except as waived under 
subsection (i), a contract or other agreement may be 
awarded under this subsection consistent with the 
applicable authorities in sections 4021, 4022, and 
4023 of title 10, United States Code, except that 
paragraph (d)(1) of such section 4022 shall not 
apply. 
(d) COMPETITION MANAGERS.— 
(1) DESIGNATION.—The Secretary shall des-
ignate a competition manager for each competition 
carried out under the pilot program. 
(2) OVERSIGHT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall directly 
oversee each competition manager with respect 
to carrying out competitions under the pilot 
program. 
(B) DELEGATION.—The Secretary may 
delegate the authority for overseeing competi-
tion managers under subparagraph (A) to the 
Deputy Secretary of Defense. 
(3) DUTIES.— 
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(A) PRIMARY DUTY.—The Secretary shall 
ensure that the primary official duties of each 
competition manager shall be conducting com-
petitions, the resulting contracting actions, and 
any subsequent competitions. 
(B) ADDITIONAL DUTIES.—The Secretary 
may define additional duties to maximize the 
ability of competition managers to coordinate 
with a military service, Defense Agency (as de-
fined in section 101(a) of title 10, United 
States Code), or combatant command to ensure 
the operational success of the competitions. 
(4) QUALIFICATIONS.— 
(A) EXPERTISE.—The Secretary shall en-
sure that each competition manager has appro-
priate expertise in the specific focus areas of 
the competition which such competition will be 
conducting and on the defense acquisition sys-
tem. 
(B) ELIGIBLE INDIVIDUALS.—Competition 
managers may be— 
(i) civilian officers or employees in a 
Senior Executive Service, Senior-Level, or 
scientific or professional position; or 
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(ii) members of the armed forces in a 
grade at or above O–6. 
(5) AUTHORITIES.— 
(A) The Secretary shall ensure that com-
petition managers have the authorities required, 
including supervisory authority over contracting 
personnel who may be assigned to report to the 
competition managers, to facilitate the award of 
contracts or agreements under subsection (c) to 
the winning offerors of the competitions. 
(B) Except where the authority of the Sec-
retary is explicitly non-delegable by statute, the 
Secretary is authorized to delegate to competi-
tion managers any authorities required to carry 
out this section, including the waiver authority 
described in subsection (i), provided that the 
Secretary submits to the relevant committees a 
notice of such delegations in writing. 
(e) FUNDING TRANSFERS.— 
(1) IN GENERAL.—In any fiscal year in which 
the Secretary of Defense conducts competitions 
under the pilot program, the Secretary may use cov-
ered funds available to the Department of Defense 
to acquire and deploy the proposed solutions selected 
pursuant to such competitions if the Secretary sub-
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mits to the relevant committees within 10 days a 
written finding that the use of such funds is nec-
essary to address in a timely manner the relevant 
urgent operational need for such a competition. 
(2) MAXIMUM
USE
AMOUNT.—The covered 
funds used under the authority provided by this sub-
section may not exceed $200,000,000 in any fiscal 
year. 
(3) COVERED FUNDS DEFINED.—In this sub-
section, the term ‘‘covered funds’’ means— 
(A) with respect to the initial competitions 
required by subsection (b), funds provided for 
short-range air defense and tactical precision 
strike; 
(B) with respect to all other competitions, 
funds provided for the capabilities related to the 
urgent operational need or needs associated 
with such competitions; or 
(C) funds available to the Department 
under the authorities and constraints of chapter 
253 of title 10, United States Code. 
(f) BUDGETING.—Subject to the availability of appro-
priations, the Secretary shall ensure that efforts to facili-
tate each competition, to include funding for the award 
of production contracts or agreements upon successful 
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completion of a competition, are included in the annual 
budget request submitted under section 1105 of title 31, 
United States Code, during each year of the pilot program 
and the future-years defense program under section 221 
of title 10, United States Code. 
(g) GUIDANCE REQUIRED.— 
(1) DEADLINE.—Not later than 90 days after 
the date of enactment of this Act, the Secretary 
shall issue guidance for the carrying out the pilot 
program. 
(2) ELEMENTS.—The guidance required by 
paragraph (1) shall include the following: 
(A) Metrics for the design, timing, and or-
ganization of competitions under the pilot pro-
gram. 
(B) Opportunities for soliciting and incor-
porating inputs from combatant commanders, 
Defense Agencies (as defined in section 101(a) 
of title 10, United States Code), military serv-
ices, and private sector entities. 
(C) A process for the general conduct of 
competitions under the pilot program, including 
merit-based selection criteria for selecting the 
most efficient and effective solutions, and proce-
dures to provide as much transparency as prac-
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ticable to offerors, government agencies, and 
the public. 
(D) Procedures to minimize the time be-
tween the completion of a competition under 
the pilot program and the award of a produc-
tion or service contract to the winning offeror. 
(E) Procedures to ensure that the goods or 
services from the winning offeror of each com-
petition under the pilot program are acquired 
and fielded as quickly as possible, with a goal 
of awarding a contract or other agreement 
under subsection (c) for the acquisition of such 
goods or services within 15 days. 
(F) Procedures to include funding required 
for the efficient and rapid procurement of the 
goods or services from winning offerors of com-
petitions under the pilot program as part of the 
annual Program Objective Memorandum and 
budget request process. 
(h) OVERSIGHT.— 
(1) BIANNUAL
BRIEFINGS.—Not later than 
March 1 and September 1 of each year beginning 
after the date of enactment of this Act, and con-
tinuing until September 1, 2029, the Secretary shall 
brief the relevant committees on each competition 
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under the pilot program that is planned, underway, 
or completed. 
(2) ELEMENTS.—Each briefing required under 
paragraph (1) shall include the following: 
(A) The guidance issued pursuant to this 
section. 
(B) A description of how the authorities 
have been used, including the metrics used for, 
testing, evaluation, selection, and frequency of 
re-competitions. 
(C) Accomplishments from and challenges 
to using the authorities under section. 
(D) Recommendations for legislative or 
regulatory changes to the authority under this 
section to promote efficient and effective acqui-
sition of capabilities. 
(3) UNCLASSIFIED FORMAT.—Each briefing re-
quired by paragraph (1) shall be in an unclassified 
format but may contain classified annexes. 
(i) WAIVER OF ACQUISITION PROVISIONS.—In con-
nection with exercising the authority of this section, the 
Secretary may waive the application of any provision of 
acquisition law or regulation to the same extent as allowed 
by the authority provided in chapter 253 of title 10, 
United States Code. 
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(j) CONTINUOUS IMPROVEMENT.—Nothing in this 
section shall preclude an winning offeror from improving 
the quality or quantity of goods or services supplied pursu-
ant to a competition, if the winning offeror can do so in 
compliance with the terms of such contract or other agree-
ment and the amount of funding provided. 
(k) DEFINITIONS.—In this section: 
(1) 
ATTRITABLE
SYSTEM.—The 
term 
‘‘attritable system’’ means systems, including un-
manned systems, that are— 
(A) purpose-designed and potentially reus-
able; 
(B) suitable for integration by digital 
means; and 
(C) affordable to allow risk of loss. 
(2) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the pilot program established under 
subsection (a). 
(3) RELEVANT COMMITTEES.—The term ‘‘rel-
evant committees’’ means the Committees on Armed 
Services of the Senate and the House of Representa-
tives and the Subcommittees on Defense of the Com-
mittees on Appropriations of the Senate and the 
House of Representatives. 
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(4) RELEVANT URGENT OPERATIONAL NEED.— 
The term ‘‘relevant urgent operational need’’ means, 
with respect to a competition, the urgent operational 
need with respect to which such competition is being 
conducted. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Defense. 
(6) WINNING
OFFEROR.—The term ‘‘winning 
offeror’’ means, with respect to a competition under 
the pilot program, an individual or entity awarded a 
contract or other agreement under subsection (c). 
(l) TERMINATION.—The authority under this section 
to carry out the pilot program shall terminate on Decem-
ber 31, 2028. 
SEC. 852. DEMONSTRATION AND PROTOTYPING PROGRAM 
TO ADVANCE INTERNATIONAL PRODUCT SUP-
PORT CAPABILITIES IN A CONTESTED LOGIS-
TICS ENVIRONMENT. 
(a) CONTESTED LOGISTICS DEMONSTRATION
AND 
PROTOTYPING PROGRAM REQUIRED.—The Secretary of 
Defense shall establish a contested logistics demonstration 
and prototyping program to identify, develop, dem-
onstrate, and field capabilities for product support in 
order to reduce or mitigate the risks associated with oper-
ations in a contested logistics environment. 
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(b) PURPOSE.—In carrying out the Program, the 
Secretary shall do the following: 
(1) Identify ways to leverage the inherent inter-
operability, commonality, and interchangeability of 
platforms and information systems operated by the 
United States and one or more covered nations, in-
cluding to enable effective maintenance and repair 
activities in a contested logistics environment. 
(2) Determine, develop, or establish best prac-
tices to reduce time needed to return repaired equip-
ment to service. 
(3) Identify, develop, demonstrate, and field ef-
fective and efficient means of conducting repairs of 
equipment in theater away from permanent repair 
facilities. 
(4) Explore flexible approaches to contracting 
and use of partnership agreements to enable use or 
development of the capabilities of covered product 
support providers to effectively, efficiently, and time-
ly satisfy the product support requirements of com-
bat command and covered nation in a contested lo-
gistics environment. 
(5) Identify the resources, including any addi-
tional authorizations, that the Department of De-
fense requires to reduce or mitigate the risks associ-
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ated with operations in a contested logistics environ-
ment. 
(6) Identify and document impediments to the 
performance of product support in contested 
logistical environments by covered product support 
providers, including impediments created by statute, 
regulation, policy, agency guidance, or limitations on 
expenditure, transfer, or receipt of funds for product 
support in contested logistics environments. 
(7) Identify and document any statutory or reg-
ulatory waivers or exemptions that may be applica-
ble or necessary to enable the United States and 
covered nations to jointly carry out product support 
activities in contested logistics environments located 
outside of the territory of the United States, includ-
ing, for each such waiver and exemption— 
(A) the office or individual responsible for 
requesting such waiver or exemption; 
(B) the criteria for approval of such waiver 
or exemption; and 
(C) the individual or entity responsible for 
approving such waiver or exemption. 
(c) ADVANCE PLANNING AND PREPARATION.—The 
Secretary may establish a product support agreements 
with a covered product support provider to enable a rapid 
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response in a contingency operation (as defined in section 
101(a) of title 10, United States Code) to the product sup-
port requirements of such contingency operation. 
(d) AUTHORITIES.—In carrying out the Program, the 
Secretary may, in accordance with section 2753 of title 
22, United States Code, use the authorities under sections 
2342, 2474, 3601, 4021, and 4022 of title 10, United 
States Code, including the authorities related to use of 
Other Transaction Authorities for prototype projects pro-
vided by section 843 of the James M. Inhofe National De-
fense Authorization Act for Fiscal Year 2023 (Public Law 
117-263). 
(e) REPORT.—Not later than 30 months after the 
date of enactment of this Act, the Secretary shall submit 
to the Congress a report summarizing the activities under-
taken in accordance with this section, including— 
(1) any recommendations to reduce impedi-
ments to meeting the requirements of combatant 
command or covered nation for product support in 
a contested logistics environment; 
(2) a summary of impediments identified under 
subsection (b)(7) and specific recommendations for 
necessary changes to statutory, regulatory, policy, 
agency guidance, or current limitations on expendi-
ture, transfer, or receipt of funds to carry out the 
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product support activities under this pilot indefi-
nitely; 
(3) a summary of waivers or exemptions identi-
fied under subsection (b)(8), along with any rec-
ommendations for changes to the processes for ob-
taining such waivers or exemptions; and 
(4) recommendations for improving the Pro-
gram, including whether to expand the list of cov-
ered nations. 
(f) DEVELOPMENT AND PROMULGATION OF DEPART-
MENT OF DEFENSE GUIDANCE.—Not later than 180 days 
after the date of enactment of this Act, the Secretary shall 
develop and promulgate guidance implementing the Pro-
gram. 
(g) SUNSET.—The authority under this section shall 
terminate on the date that is 3 years after the date of 
the enactment of this Act. 
(h) DEFINITIONS.—In this section: 
(1) CONTESTED
LOGISTICS
ENVIRONMENT.— 
The term ‘‘contested logistics environment’’ has the 
meaning given such term in section 2926 of title 10, 
United States Code. 
(2) COVERED
NATIONS.—The term ‘‘covered 
nation’’ means— 
(A) Australia; 
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(B) Canada; 
(C) New Zealand; or 
(D) United Kingdom of Great Britain and 
Northern Ireland. 
(3) COVERED PRODUCT SUPPORT PROVIDER.— 
The term ‘‘covered product support provider’’ means 
an entity that provides product support. 
(4) PRODUCT SUPPORT; PRODUCT SUPPORT IN-
TEGRATOR.—The terms ‘‘product support’’ and 
‘‘product support integrator’’ have the meanings 
given such terms, respectively, in section 4324 of 
title 10, United States Code. 
(5) PRODUCT
SUPPORT
ARRANGEMENT.—The 
term ‘‘product support arrangement’’ means a con-
tract, task order, or any other type of agreement or 
arrangement, between the United States and a cov-
ered nation for the performance of sustainment or 
logistics support required for a platform or informa-
tion system operated by the United States and such 
covered nation, or a subsystems or components of 
such a platform or information system, including 
any agreement or arrangement for the following with 
respect to such a platform, information system, sub-
system, or component: 
(A) Performance-based logistics. 
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(B) Sustainment support. 
(C) Contractor logistics support. 
(D) Life-cycle product support. 
(E) Weapon system product support. 
(6) PROGRAM.—The term ‘‘Program’’ means 
the demonstration and prototyping program estab-
lished under subsection (a). 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Defense. 
SEC. 853. DEFENSE INDUSTRIAL BASE ADVANCED CAPA-
BILITIES PILOT PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Under Secretary of De-
fense for Acquisition and Sustainment shall carry 
out a public-private partnership pilot program to ac-
celerate the scaling, production, and acquisition of 
advanced capabilities for national security by cre-
ating incentives for investment in domestic small 
businesses or nontraditional businesses to create a 
robust and resilient defense industrial base. 
(2) GOALS.—The goals of the public-private 
partnership pilot program are as follows: 
(A) To bolster the defense industrial base 
through acquisition and deployment of ad-
vanced capabilities necessary to field Depart-
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ment of Defense modernization programs and 
priorities. 
(B) To strengthen domestic defense supply 
chain resilience and capacity by investing in in-
novative defense companies. 
(C) To leverage private equity capital to 
accelerate domestic defense scaling, production, 
and manufacturing. 
(b) PUBLIC-PRIVATE PARTNERSHIPS.— 
(1) IN GENERAL.—In carrying out subsection 
(a), the Under Secretary shall enter into public-pri-
vate partnerships, consistent with the phased imple-
mentation provided for in subsection (e), with for- 
profit persons using the criteria set forth in para-
graph (2). 
(2) CRITERIA.—The criteria referred to in 
paragraph (1) shall include the following: 
(A) The person shall be independent. 
(B) The person shall be free from foreign 
oversight, control, influence, or beneficial own-
ership. 
(C) The person shall have commercial pri-
vate equity fund experience in the defense and 
commercial sectors. 
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(D) The person shall be eligible for access 
to classified information (as defined in the pro-
cedures established pursuant to section 801(a) 
of the National Security Act of 1947 (50 
U.S.C. 3161(a))). 
(3) OPERATING AGREEMENT.—The Under Sec-
retary and a person or persons with whom the 
Under Secretary enters a partnership under para-
graph (1) shall enter into an operating agreement 
that sets forth the roles, responsibilities, authorities, 
reporting requirements, and governance framework 
for the partnership and its operations. 
(c) INVESTMENT OF EQUITY.— 
(1) IN GENERAL.—Pursuant to public-private 
partnerships entered into under subsection (b), a 
person or persons with whom the Under Secretary 
has entered into a partnership shall invest equity in 
domestic small businesses or nontraditional busi-
nesses consistent with subsection (a), with invest-
ments selected based on technical merit, economic 
value, and the Department’s modernization prior-
ities. 
(2) AUTHORITIES.—A person or persons de-
scribed in paragraph (1) shall have sole authority to 
operate, manage, and invest. 
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(d) LOAN GUARANTEE.— 
(1) IN GENERAL.—The Under Secretary shall 
provide an up to 80 percent loan guarantee, pursu-
ant to the public-private partnerships entered into 
under subsection (b), with investment of equity that 
qualifies under subsection (c) and consistent with 
the goals set forth under subsection (a)(2). 
(2) PILOT
PROGRAM
AUTHORITY.—The tem-
porary loan guarantee authority described under 
paragraph (1) is exclusively for the public-private 
partnerships authorized under this section and may 
not be utilized for other programs or purposes. 
(3) SUBJECT
TO
OPERATING
AGREEMENT.— 
The loan guarantee under paragraph (1) shall be 
subject to the operating agreement entered into 
under subsection (b)(3). 
(4) USE OF FUNDS.—Obligations incurred by 
the Under Secretary under this paragraph shall be 
subject to the availability of funds provided in ad-
vance specifically for the purpose of such loan guar-
antees. 
(e) PHASED IMPLEMENTATION SCHEDULE AND RE-
QUIRED REPORTS AND BRIEFINGS.—The program estab-
lished under subsection (a) shall be carried out in two 
phases as follows: 
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(1) PHASE 1.— 
(A) IN GENERAL.—Phase 1 shall consist of 
an initial pilot program with one public-private 
partnership, consistent with subsection (b), to 
assess the feasibility and advisability of expand-
ing the scope of the program. The Under Sec-
retary shall begin implementation of phase 1 
not later than 180 days after the date of the 
enactment of this Act. 
(B) IMPLEMENTATION
SCHEDULE
AND 
FRAMEWORK.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary 
shall submit an implementation plan to the con-
gressional defense committees on the design of 
phase 1. The plan shall include— 
(i) an overview of, and the activities 
undertaken, to execute the public-private 
partnership; 
(ii) a description of the advanced ca-
pabilities and defense industrial base areas 
under consideration for investment; and 
(iii) implementation milestones and 
metrics. 
(C) REPORT AND BRIEFING REQUIRED.— 
Not later than 27 months after the date of the 
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enactment of this Act, the Secretary shall pro-
vide to the congressional defense committees a 
report and briefing on the implementation of 
this section and the feasibility and advisability 
of expanding the scope of the pilot program. 
The report and briefing shall include, at min-
imum— 
(i) an overview of program perform-
ance, and implementation and execution 
milestones and outcomes; 
(ii) an overview of progress in— 
(I) achieving new products in 
production aligned with Department 
of Defense needs; 
(II) scaling businesses aligned to 
targeted industrial base and capability 
areas; 
(III) generating defense indus-
trial base job growth; 
(IV) increasing supply chain re-
silience and capacity; and 
(V) enhancing competition on ad-
vanced capability programs; and 
(iii) an accounting of activities under-
taken and outline of the opportunities and 
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benefits of expanding the scope of the pilot 
program. 
(2) PHASE 2.— 
(A) IN
GENERAL.—Not later than 30 
months after the date of the enactment of this 
Act, the Secretary may expand the scope of the 
phase 1 pilot program with the ability to in-
crease to not more than three public-private 
partnerships, consistent with subsection (b). 
(B) REPORT AND BRIEFING REQUIRED.— 
Not later than five years after the date of the 
enactment of this Act, the Secretary shall pro-
vide to the congressional defense committees a 
report and briefing on the outcomes of the pilot 
program under subsection (a), including the ele-
ments described in paragraph (1)(C), and the 
feasibility and advisability of making the pro-
gram permanent. 
(f) TERMINATION.—The authority to enter into an 
agreement to carry out the pilot program under subsection 
(a) shall terminate on the date that is five years after the 
date of the enactment of this Act. 
(g) DEFINITIONS.—In this section: 
(1) CONGRESSIONAL DEFENSE COMMITTEES.— 
The term ‘‘congressional defense committees’’ has 
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the meaning given the term in section 101(a)(16) of 
title 10, United States Code. 
(2) DOMESTIC BUSINESS.—The term ‘‘domestic 
business’’ has the meaning given the term ‘‘U.S. 
business’’ in section 800.252 of title 31, Code of 
Federal Regulations, or successor regulation. 
(3) DOMESTIC
SMALL
BUSINESSES
OR
NON-
TRADITIONAL
BUSINESSES.—The term ‘‘domestic 
small businesses or nontraditional businesses’’ 
means— 
(A) a small business that is a domestic 
business; or 
(B) a nontraditional business that is a do-
mestic business. 
(4) FREE
FROM
FOREIGN
OVERSIGHT, CON-
TROL, INFLUENCE, OR BENEFICIAL OWNERSHIP.— 
The term ‘‘free from foreign oversight, control, influ-
ence, or beneficial ownership’’, with respect to a per-
son, means a person who has not raised and man-
aged capital from a person or entity that is not 
trusted and who is otherwise free from foreign over-
sight, control, influence, or beneficial ownership. 
(5) INDEPENDENT.—The term ‘‘independent’’, 
with respect to a person, means a person who lacks 
a conflict of interest accomplished by not having en-
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tity or manager affiliation or ownership with an ex-
isting fund. 
(6) NONTRADITIONAL
BUSINESS.—The term 
‘‘nontraditional business’’ has the meaning given the 
term ‘‘nontraditional defense contractor’’ in section 
3014 of title 10, United States Code. 
(7) SMALL BUSINESS.—The term ‘‘small busi-
ness’’ has the meaning given the term ‘‘small busi-
ness concern’’ in section 3 of the Small Business Act 
(15 U.S.C. 632). 
Subtitle E—Industrial Base Matters 
SEC. 861. ADDITIONAL NATIONAL SECURITY OBJECTIVES 
FOR THE NATIONAL TECHNOLOGY AND IN-
DUSTRIAL BASE. 
Section 4811(a) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(12) Reducing, to the maximum extent prac-
ticable, the reliance of the Department of Defense 
on services, supplies, or materials from potential ad-
versaries.’’. 
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SEC. 862. USE OF INDUSTRIAL BASE FUND FOR SUPPORT 
FOR THE WORKFORCE FOR LARGE SURFACE 
COMBATANTS. 
Section 4817(d) of title 10, United States Code, is 
amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (4), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(5) to provide support for the recruitment, 
training, and retention of the workforce for large 
surface combatants.’’. 
SEC. 863. REDESIGNATION OF INDUSTRIAL BASE FUND AS 
INDUSTRIAL BASE AND OPERATIONAL INFRA-
STRUCTURE FUND; ADDITIONAL USES. 
Section 4817 of title 10, United States Code, is 
amended— 
(1) in the section heading, by inserting ‘‘and 
Operational Infrastructure’’ after ‘‘Indus-
trial Base’’; 
(2) in subsection (a), by inserting ‘‘and Oper-
ational Infrastructure’’ after ‘‘Industrial Base’’; 
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(3) in subsection (b), by striking ‘‘, acting 
through the Deputy Assistant Secretary of Defense 
for Manufacturing and Industrial Base Policy’’; and 
(4) in subsection (d)— 
(A) in paragraph (4), as amended by sec-
tion 862, by striking ‘‘and’’ at the end; 
(B) in paragraph (5), as added by section 
862, by striking the period at the end and in-
serting a semicolon; and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(6) to acquire— 
‘‘(A) strategic and critical materials for the 
National Defense Stockpile; and 
‘‘(B) munitions for the armed forces; 
‘‘(7) to provide and expedite infrastructure 
projects critical to operational readiness within pri-
ority theaters as determined by the Secretary, con-
sistent with the national defense strategy required 
under section 113(g) of this title; and 
‘‘(8) to acquire and deploy capabilities and pro-
totypes developed under the authorities of section 
3601 of title 10, section 804 of the National Defense 
Authorization Act for Fiscal Year 2016 (10 U.S.C. 
3201 note prec.), and any other alternative acquisi-
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tion pathway or mechanism designed to deploy oper-
ational capabilities and operational prototypes for 
defense purposes within five years.’’. 
SEC. 864. MODIFICATIONS TO THE PROCUREMENT TECH-
NICAL ASSISTANCE COOPERATIVE AGREE-
MENT PROGRAM. 
(a) MODIFICATION TO DEFINITION OF ELIGIBLE EN-
TITY.—Section 4951(1) of title 10, United States Code, 
is amended— 
(1) in subparagraph (C), by striking ‘‘private’’; 
(2) by redesignating subparagraph (D) as sub-
paragraph (E); and 
(3) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) An institution of higher education, as 
defined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001).’’. 
(b) DEFINITION
OF BUSINESS ENTITY.—Section 
4951 of title 10, United States Code, is amended by add-
ing at the end the following new paragraph: 
‘‘(5) BUSINESS
ENTITY.—The term ‘business 
entity’ means a corporation, association, partnership, 
limited liability company, limited liability partner-
ship, consortia, nonprofit organization, or other legal 
entity.’’. 
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(c) COOPERATIVE AGREEMENTS.—Section 4954(c) of 
title 10, United States Code, is amended to read as fol-
lows: 
‘‘(c) WAIVER.—The Secretary may waive or modify 
the percentages in subsection (b) on a case-by-case 
basis.’’. 
(d) FUNDING.—Section 4955 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) FUNDING.—The Secretary of Defense may only 
use amounts appropriated under this chapter for the exe-
cution and administration of this chapter.’’. 
SEC. 865. MODIFICATION TO PROCUREMENT REQUIRE-
MENTS RELATING TO RARE EARTH ELE-
MENTS AND STRATEGIC AND CRITICAL MATE-
RIALS. 
(a) MODIFICATION REGARDING ADVANCED BAT-
TERIES
IN DISCLOSURES CONCERNING RARE EARTH 
ELEMENTS AND STRATEGIC AND CRITICAL MATERIALS 
BY CONTRACTORS OF DEPARTMENT OF DEFENSE.—Sec-
tion 857 of the James M. Inhofe National Defense Au-
thorization Act for Fiscal Year 2023 (Public Law 117– 
263; 136 Stat. 2727; 10 U.S.C. 4811 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(A)— 
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(i) by striking ‘‘permanent magnet’’ 
and inserting ‘‘permanent magnet, or an 
advanced battery or advanced battery com-
ponent (as those terms are defined, respec-
tively, in section 40207(a) of the Infra-
structure Investment and Jobs Act (42 
U.S.C. 18741(a))),’’; and 
(ii) by striking ‘‘of the magnet’’ and 
inserting ‘‘of the magnet, the advanced 
battery, or the advanced battery compo-
nent (as applicable)’’; and 
(B) in paragraph (2), by amending to read 
as follows: 
‘‘(2) ELEMENTS.—A disclosure under para-
graph (1) with respect to a system described in that 
paragraph shall include— 
‘‘(A) if the system includes a permanent 
magnet, an identification of the country or 
countries in which— 
‘‘(i) any rare earth elements and stra-
tegic and critical materials used in the 
magnet were mined; 
‘‘(ii) such elements and materials were 
refined into oxides; 
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‘‘(iii) such elements and materials 
were made into metals and alloys; and 
‘‘(iv) the magnet was sintered or 
bonded and magnetized; and 
‘‘(B) if the system includes an advanced 
battery or an advanced battery component, an 
identification of the country or countries in 
which— 
‘‘(i) any strategic and critical mate-
rials that are covered minerals used in the 
battery or component were mined; 
‘‘(ii) any strategic and critical mate-
rials that are covered minerals used in the 
battery or component were refined, proc-
essed, or reprocessed; 
‘‘(iii) any strategic and critical mate-
rials that are covered minerals and that 
were manufactured into the battery or 
component; and 
‘‘(iv) the battery cell, module, and 
pack of the battery or component were 
manufactured and assembled.’’; and 
(2) by amending subsection (d) to read as fol-
lows: 
‘‘(d) DEFINITIONS.—In this section: 
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‘‘(1) The term ‘strategic and critical materials’ 
means materials designated as strategic and critical 
under section 3(a) of the Strategic and Critical Ma-
terials Stock Piling Act (50 U.S.C. 98b(a)). 
‘‘(2) The term ‘covered minerals’ means lith-
ium, nickel, cobalt, manganese, and graphite.’’. 
(b) TECHNICAL AMENDMENTS.—Subsection (a) of 
such section 857 is further amended— 
(1) in paragraph (3), by striking ‘‘provides the 
system’’ and inserting ‘‘provides the system as de-
scribed in paragraph (1)’’; and 
(2) in paragraph (4)(C), by striking ‘‘a senior 
acquisition executive’’ and inserting ‘‘a service acqui-
sition executive’’. 
SEC. 866. SECURING MARITIME DATA FROM CHINA. 
(a) COUNTERING THE SPREAD OF COVERED LOGIS-
TICS SOFTWARE.— 
(1) CONTRACTING PROHIBITION.— 
(A) IN GENERAL.—The Department of De-
fense may not enter into a contract with an en-
tity that uses covered logistics software. 
(B) APPLICABILITY.—This paragraph shall 
apply with respect to any contract entered into 
on or after the date that is 180 days after the 
enactment of this subsection. 
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(2) WAIVER.—The Secretary of Defense may 
waive the provisions of this subsection for a specific 
contract— 
(A) if the Secretary makes a determination 
that such waiver is vital to the national security 
of the United States; and 
(B) submits to Congress a report justifying 
the use of such waiver and the importance of 
such waiver to the national security of the 
United States. 
(3) REPORT.—Not later than one year after the 
date of the enactment of this subsection, and annu-
ally for three subsequent years, the Secretary of De-
fense shall submit to Congress a report on the im-
plementation of this subsection. 
(b) POLICY WITH RESPECT TO PORTS ACCEPTING 
FEDERAL GRANT MONEY.— 
(1) IN
GENERAL.—Chapter 503 of title 46, 
United States Code, is amended by adding at the 
end the following: 
‘‘§ 50309. Prohibited use 
‘‘(a) IN GENERAL.—A covered port authority may 
not use covered logistics software. 
‘‘(b) GUIDANCE.—The Secretary of Transportation, 
in consultation with the Secretary of Defense, shall pub-
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lish on a website of the Department of Transportation, 
and update regularly, a list of entities subject to the prohi-
bition in subsection (a). 
‘‘(c) CONSULTATION.—The Secretary of Transpor-
tation shall consult with the Department of State in car-
rying out this section. 
‘‘(d) WAIVER.—The Secretary of Transportation, in 
consultation with the Secretary of State, may waive the 
provisions of this section for a specific contract— 
‘‘(A) if the Secretary of Transportation 
makes a determination that such waiver is vital 
to the national security of the United States; 
and 
‘‘(B) submits to Congress a report justi-
fying the use of such waiver and the importance 
of such waiver to the national security of the 
United States. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED
LOGISTICS
SOFTWARE.—The 
term ‘covered logistics software’ means— 
‘‘(A) the public, open, shared logistics in-
formation network known as the National Pub-
lic Information Platform for Transportation 
and Logistics by the Ministry of Transport of 
China or any affiliate or successor entity; 
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HR 2670 RDS
‘‘(B) any other transportation logistics 
software designed to be used by port authorities 
subject to the jurisdiction, ownership, direction, 
or control of a foreign adversary; or 
‘‘(C) any other logistics platform or soft-
ware that shares data with a system described 
in subparagraphs (A) or (B). 
‘‘(2) COVERED
PORT
AUTHORITY.—The term 
‘covered port authority’ means a port authority that 
receives funding under a program authorized under 
part C of this subtitle.’’ 
(2) APPLICABILITY.—Section 50309 of title 46, 
United States Code, as added by paragraph (1), 
shall apply with respect to any contract entered into 
on or after the date that is 180 days after the enact-
ment of this subsection. 
(3) REPORTING.—Not later than one year after 
the date of the enactment of this subsection, and an-
nually for three subsequent years, the Secretary of 
Transportation shall submit to Congress a report on 
the implementation of section 50309 of title 46, 
United States Code, as added by paragraph (1). 
(c) NEGOTIATIONS WITH ALLIES AND PARTNERS.— 
(1) NEGOTIATIONS REQUIRED.—The Secretary 
of State shall seek to enter into negotiations with 
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HR 2670 RDS
United States ally and partner countries, including 
those described in paragraph (3), if the President 
determines that ports or other entities operating 
within the jurisdiction of such ally or partner coun-
tries are using or are considering using covered lo-
gistics software. 
(2) ELEMENTS.—As part of the negotiations 
described in paragraph (1), the President shall— 
(A) urge governments of such ally and 
partner countries to require entities within the 
jurisdiction of such governments to terminate 
the use of covered logistics software; 
(B) describe the threats posed by covered 
logistics software to United States military and 
strategic interests and the implications such 
threats may have for the presence of members 
of the Armed Forces of the United States in 
such countries; 
(C) urge governments to use their voice, 
influence, and vote to align with the United 
States and to counter attempts by foreign ad-
versaries at international standards-setting bod-
ies to adopt standards that incorporate covered 
logistics software; and 
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HR 2670 RDS
(D) attempt to establish, through multilat-
eral entities, bilateral or multilateral negotia-
tions, military cooperation, and other relevant 
engagements or agreements, a prohibition on 
the use of covered logistics software. 
(3) ALLIES AND PARTNERS DESCRIBED.—The 
countries and entities with which the President shall 
conduct negotiations described in this subsection 
shall include— 
(A) all countries party to a collective de-
fense treaty or other collective defense arrange-
ment with the United States; 
(B) India; and 
(C) Taiwan. 
(4) REPORT.—Not later than one year after the 
date of the enactment of this subsection, the Sec-
retary of State shall submit a report to the appro-
priate congressional committees describing— 
(A) the efforts made by the United States 
Government as of the date of the submission of 
the report in the negotiations described in this 
subsection; and 
(B) the actions taken by the governments 
of ally and partner countries pursuant to the 
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HR 2670 RDS
negotiation priorities described in this sub-
section. 
(d) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committees on Armed Services, 
Foreign Affairs, and Transportation and Infra-
structure of the House of Representatives; and 
(B) The Committees on Armed Services, 
Foreign Relations, and Commerce, Science, and 
Transportation, and Armed Services of the Sen-
ate. 
(2) COVERED LOGISTICS SOFTWARE.—The term 
‘‘covered logistics software’’ means— 
(A) the public, open, shared logistics infor-
mation network known as the National Public 
Information Platform for Transportation and 
Logistics by the Ministry of Transport of China 
or any affiliate or successor entity; 
(B) any other transportation logistics soft-
ware designed to be used by port authorities 
subject to the jurisdiction, ownership, direction, 
or control of a foreign adversary; or 
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HR 2670 RDS
(C) any other logistics platform or soft-
ware that shares data with a system described 
in subparagraphs (A) or (B). 
(3) FOREIGN ADVERSARY.—The term ‘‘foreign 
adversary’’ means— 
(A) the People’s Republic of China, includ-
ing the Hong Kong and Macau Special Admin-
istrative Regions; 
(B) the Republic of Cuba; 
(C) the Islamic Republic of Iran; 
(D) the Democratic People’s Republic of 
Korea; 
(E) the Russian Federation; and 
(F) the Bolivarian Republic of Venezuela 
under the regime of Nicola´s Maduro Moros. 
SEC. 867. PILOT PROGRAM FOR ANALYZING AND CONTIN-
UOUS MONITORING OF KEY SUPPLY CHAINS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of De-
fense, acting through the Under Secretary of Defense for 
Acquisition and Sustainment and in coordination with the 
Commander of the United States Indo-Pacific Command 
and the Secretary of each military department, shall es-
tablish a pilot program under which a private entity 
shall— 
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HR 2670 RDS
(1) monitor the supply chains for the covered 
weapons platforms; and 
(2) analyze the supply chains of the defense in-
dustrial base for potential issues and vulnerabilities 
and opportunities for improvement. 
(b) MONITORING ENTITY.— 
(1) SELECTION.—The Under Secretary of De-
fense for Acquisition and Sustainment shall select a 
private entity to carry out the monitoring and anal-
ysis of supply chains under the pilot program estab-
lished under subsection (a). 
(2) SUPPLY
CHAIN
MONITORING
AND
ANAL-
YSIS.— 
(A) IN GENERAL.—The monitoring entity 
shall, using the information made available to 
the monitoring entity under subparagraph (B) 
and such other information as may be avail-
able— 
(i) continuously monitor the supply 
chains for covered weapons platforms, in-
cluding each entity involved in such supply 
chain, 
for 
potential 
issues 
and 
vulnerabilities, including issues related to 
the security and capacity of any such sup-
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HR 2670 RDS
ply chain, and opportunities for improve-
ment; and 
(ii) regularly analyze the supply 
chains of the defense industrial base for 
potential issues and opportunities for im-
provement. 
(B) AGENCY COOPERATION.—The Depart-
ment of Defense shall make available to the 
monitoring entity all information held by the 
Department or available to the Department 
from contractors providing goods or services to 
the Department relating to the supply chains of 
such contractors, except that the Department 
shall not make available such information as 
the Secretary of Defense determines appro-
priate. 
(C) SAFEGUARDING
INFORMATION.—The 
Secretary of Defense shall require the moni-
toring entity to take such steps as are reason-
ably necessary to protect any confidential, pro-
prietary, or sensitive information. 
(D) ISSUE REPORTING.— 
(i) IN GENERAL.—The monitoring en-
tity shall report to the Secretary concerned 
issues and vulnerabilities identified pursu-
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HR 2670 RDS
ant to monitoring under subparagraph 
(A)(i). 
(ii) VALIDATION.—The monitoring en-
tity shall use a process to report issues and 
vulnerabilities identified pursuant to moni-
toring under subparagraph (A)(i) that in-
volves manual validation of such issues and 
vulnerabilities and other activities designed 
to— 
(I) prevent members of the acqui-
sition workforce (as such term is de-
fined in section 101(a) of title 10, 
United States Code) from becoming 
desensitized 
to 
such 
issues 
and 
vulnerabilities; and 
(II) avoid providing an excessive 
or unmanageable number of alerts re-
garding 
such 
issues 
and 
vulnerabilities. 
(3) QUARTERLY REPORTS.—Not less than 90 
days after the establishment of the pilot program, 
and every 90 days thereafter, the monitoring entity 
shall submit to the Under Secretary of Defense for 
Acquisition and Sustainment a report on the issues, 
vulnerabilities, and opportunities identified by the 
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HR 2670 RDS
monitoring entity pursuant under the pilot program, 
including— 
(A) a list of the vulnerabilities of the sup-
ply chains for covered weapons platforms, cat-
egorized by severity; and 
(B) for each vulnerability described in sub-
paragraph (A), a description of such vulner-
ability, whether such vulnerability has been re-
solved, and, if resolved, the time from identi-
fication to resolution. 
(c) CONGRESSIONAL REPORTS.—Not later than 180 
days after the date of the enactment of this Act, each Sec-
retary concerned shall submit to the congressional defense 
committees (as defined in section 101(a) of title 10, 
United States Code) a report containing— 
(1) a list of the vulnerabilities of the supply 
chains for covered weapons platforms identified 
under the pilot program, categorized by severity; 
(2) for each vulnerability described in subpara-
graph (A), a description of such vulnerability, 
whether such vulnerability has been resolved, and, if 
resolved, the time from identification to resolution; 
(3) an assessment of any legal authorities that 
are needed to continuously monitor the supply 
chains for all major defense acquisition programs (as 
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HR 2670 RDS
such term is defined in section 4201 of title 10, 
United States Code) in a manner similar to the 
monitoring of supply chains for covered weapons 
platforms under the pilot program; 
(4) an assessment of the costs avoided by the 
identification of issues and vulnerabilities to supply 
chains under the pilot program prior such issues and 
vulnerabilities affecting the supply chains. 
(d) TERMINATION DATE.—The authority under this 
section shall terminate on the date that is one year after 
the date of the enactment of this Act. 
(e) DEFINITIONS.—In this section: 
(1) COVERED
WEAPONS
PLATFORMS.—The 
term ‘‘covered weapons platforms’’ means weapons 
platforms identified in the reports submitted under 
section 1251(d)(1) of the William M. (Mac) Thorn-
berry National Defense Authorization Act for Fiscal 
Year 2021 (10 U.S.C. 113 note). 
(2) MONITORING
ENTITY.—The term ‘‘moni-
toring entity’’ means the entity that is operating 
under an agreement with the Secretary of Defense 
to carry out the monitoring and analysis of supply 
chains under the pilot program pursuant to a selec-
tion under subsection (b)(1). 
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HR 2670 RDS
(3) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the pilot program established under 
subsection (a). 
(4) SECRETARY CONCERNED.—The term ‘‘Sec-
retary concerned’’ has the meaning given such term 
in section 101(a) of title 10, United States Code. 
SEC. 868. STUDY AND REPORT ON COUNTRY OF ORIGIN OF 
END ITEMS AND COMPONENTS PROCURED BY 
DEPARTMENT OF DEFENSE. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study to identify the degree to 
which the Department of Defense is dependent on entities 
located in foreign countries for the procurement of certain 
end items and components. 
(b) REPORT.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date of the enactment of this section, the 
Comptroller General of the United States shall sub-
mit to the Committees on Armed Services of the 
Senate and the House of Representatives a report 
detailing the findings of the study described in sub-
section (a). 
(2) ELEMENTS.—The report described in para-
graph (1) shall contain the following: 
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(A) A description of the extent to which 
the procurement processes of the Department 
of Defense allow for the determination of the 
country of origin of the end items and compo-
nents studied under subsection (a). 
(B) Descriptions of the vulnerabilities in 
the supply chains for end items and components 
and the countries from which such end items 
and components are procured. 
(C) Recommendations for legislative or ad-
ministrative action to address the vulnerabilities 
described in subparagraph (B), including plans 
for alternative supply chains or alternative 
countries from which to procure end items and 
components. 
(c) DEFINITIONS.—In this section: 
(1) COMPONENT.—The term ‘‘component’’ has 
the meaning given the term in section 3011 of title 
10, United States Code. 
(2) END ITEM.—The term ‘‘end item’’ has the 
meaning given the term in section 4863(n) of title 
10, United States Code. 
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SEC. 869. ENHANCED DOMESTIC CONTENT REQUIREMENT 
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS. 
(a) ASSESSMENT REQUIRED.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
defense committees a report assessing the domestic 
source content of procurements carried out in con-
nection with a major defense acquisition program. 
(2) INFORMATION REPOSITORY.—The Secretary 
of Defense shall establish an information repository 
for the collection and analysis of information related 
to domestic source content for products the Sec-
retary deems critical, where such information can be 
used for continuous data analysis and program man-
agement activities. 
(b) ENHANCED
DOMESTIC
CONTENT
REQUIRE-
MENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), for purposes of chapter 83 of title 41, 
United States Code, manufactured articles, mate-
rials, or supplies procured in connection with a 
major defense acquisition program are manufactured 
substantially all from articles, materials, or supplies 
mined, produced, or manufactured in the United 
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HR 2670 RDS
States if the cost of such component articles, mate-
rials, or supplies— 
(A) supplied not later than the date of the 
enactment of this Act, exceeds 60 percent of 
cost of the manufactured articles, materials, or 
supplies procured; 
(B) supplied during the period beginning 
January 1, 2024, and ending December 31, 
2028, exceeds 65 percent of the cost of the 
manufactured articles, materials, or supplies; 
and 
(C) supplied on or after January 1, 2029, 
exceeds 75 percent of the cost of the manufac-
tured articles, materials, or supplies. 
(2) EXCLUSION FOR CERTAIN MANUFACTURED 
ARTICLES.—Paragraph (1) shall not apply to manu-
factured articles that consist wholly or predomi-
nantly of iron, steel, or a combination of iron and 
steel. 
(3) RULEMAKING
TO
CREATE
A
FALLBACK 
THRESHOLD.— 
(A) IN
GENERAL.—Not later than 180 
days after the date of the enactment of this 
Act, the Secretary of Defense shall issue rules 
to determine the treatment of the lowest price 
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HR 2670 RDS
offered for a foreign end product for which 55 
percent or more of the component articles, ma-
terials, or supplies of such foreign end product 
are manufactured substantially all from articles, 
materials, or supplies mined, produced, or man-
ufactured in the United States if— 
(i) the application paragraph (1) re-
sults in an unreasonable cost; or 
(ii) no offers are submitted to supply 
manufactured articles, materials, or sup-
plies manufactured substantially all from 
articles, materials, or supplies mined, pro-
duced, or manufactured in the United 
States. 
(B) TERMINATION.—Rules issued under 
this paragraph shall cease to have force or ef-
fect on January 1, 2031. 
(4) APPLICABILITY.—The requirements of this 
subsection— 
(A) shall apply to contracts entered into on 
or after the date of the enactment of this Act; 
(B) shall not apply to articles manufac-
tured in countries that have executed a recip-
rocal defense procurement memorandum of un-
derstanding with the United States entered into 
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HR 2670 RDS
pursuant to section 4851 of title 10, United 
States Code; and 
(C) shall not apply to a country that is a 
member of the national technology and indus-
trial base (as defined by section 4801 of title 
10, United States Code). 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DE-
FINED.—The term ‘‘major defense acquisition program’’ 
has the meaning given in section 4201 of title 10, United 
States Code. 
SEC. 870. REPORT ON COMPETITION AND EQUIPMENT RE-
PAIR. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that it is integral that the military be able to fix 
its own equipment, and that efforts deliberately designed 
to prevent the military end user from fixing equipment 
in the field harm our nation’s military readiness. 
(b) REPORT AND PLAN.—The Secretary of Defense 
shall submit to the Chair of the White House Competition 
Council the report required under clause (iii) of section 
5(s) of Executive Order 14036 titled ‘‘Executive Order on 
Promoting Competition in the American Economy’’. 
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HR 2670 RDS
SEC. 871. REPORT ON THE UNITED STATES DEFENSE AND 
TECHNOLOGICAL INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port containing— 
(1) an assessment of the extent to which the in-
efficiencies and inadequacies of the defense and 
technological industrial base impede the timely pro-
duction and delivery of air and missile defense com-
ponents to the allies and partners of the United 
States located in the area of responsibility of the 
United States Central Command; 
(2) an assessment of the ongoing efforts of the 
Department of Defense and other Federal agencies 
to remedy inefficiencies and inadequacies described 
in paragraph (1); and 
(3) a strategy for addressing the inefficiencies 
or inadequacies described in paragraph (1), includ-
ing an evaluation of the benefits of procuring the 
components described in such paragraph from and 
industrial cooperation with allies and partners of the 
United States located outside the area of responsi-
bility of the United States Central Command. 
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HR 2670 RDS
(b) FORM.—The report required by subsection (a) 
shall be in an unclassified form but may contain a classi-
fied annex. 
SEC. 872. OFFICE OF STRATEGIC CAPITAL CHINESE COM-
PANY INVESTMENT PROHIBITION. 
Beginning on the date of the enactment of this Act, 
the Office of Strategic Capital in the Office of the Under 
Secretary of Defense for Research and Engineering may 
not invest in or guarantee or otherwise facilitate any in-
vestment in any entity— 
(1) incorporated under the laws of the People’s 
Republic of China; or 
(2) of which more than 50 percent is owned, di-
rectly or indirectly, by— 
(A) citizens of the People’s Republic of 
China; 
(B) entities incorporated under the laws of 
the People’s Republic of China; or 
(C) any combination of the individuals and 
entities described in subparagraphs (A) and 
(B). 
SEC. 873. REPORT ON DEFENSE INDUSTRIAL BASE COM-
PETITION. 
Not later than two years after the date of enactment 
of this Act, the Comptroller General of the United States 
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shall submit to the congressional defense committees a re-
port containing— 
(1) an evaluation of the consolidation within the 
defense industrial base and how such consolidation 
affects the ability of the Department of Defense to 
procure goods at competitive and market equivalent 
prices; 
(2) an analysis of the state of competition with-
in the defense industrial base, including an overview 
of the sizes, as measured by factors including num-
ber of employees, facilities, and contracts with the 
Department of Defense, and market shares of con-
tractors that currently hold a contract with the De-
partment of Defense; and 
(3) an assessment of the economic and national 
security effects of anticompetitive behavior in the de-
fense industrial base. 
Subtitle F—Small Business Matters 
SEC. 881 ENTREPRENEURIAL INNOVATION PROJECT DES-
IGNATIONS. 
(a) IN GENERAL.— 
(1) DESIGNATING
CERTAIN
SBIR
AND
STTR 
PROGRAMS
AS
ENTREPRENEURIAL
INNOVATION 
PROJECTS.—Chapter 303 of title 10, United States 
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Code, is amended by inserting after section 4067 the 
following new section: 
‘‘§ 4068. Entrepreneurial Innovation Project designa-
tions 
‘‘(a) IN GENERAL.—During the first fiscal year be-
ginning after the date of the enactment of this section, 
and during each subsequent fiscal year, each Secretary 
concerned, in consultation with the each chief of an armed 
force under the jurisdiction of the Secretary concerned, 
shall designate not less than five eligible programs as En-
trepreneurial Innovation Projects. 
‘‘(b) APPLICATION.—An eligible program seeking 
designation as an Entrepreneurial Innovation Project 
under this section shall submit to the Secretary concerned 
an application at such time, in such manner, and con-
taining such information as the Secretary concerned deter-
mines appropriate. 
‘‘(c) DESIGNATION CRITERIA.—In making designa-
tions under subsection (a), the Secretary concerned shall 
consider— 
‘‘(1) the potential of the eligible program to— 
‘‘(A) advance the national security capa-
bilities of the United States; 
‘‘(B) provide new technologies or proc-
esses, or new applications of existing tech-
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HR 2670 RDS
nologies, that will enable new alternatives to ex-
isting programs; and 
‘‘(C) provide future cost savings; 
‘‘(2) whether an advisory panel has rec-
ommended the eligible program for designation; and 
‘‘(3) such other criteria that the Secretary con-
cerned determines to be appropriate. 
‘‘(d) DESIGNATION BENEFITS.— 
‘‘(1) FUTURE
YEARS
DEFENSE
PROGRAM
IN-
CLUSION.—With respect to each designated pro-
gram, the Secretary of Defense shall include in the 
next future-years defense program the estimated ex-
penditures of such designated program. In the pre-
ceding sentence, the term ‘next future-years defense 
program’ means the future-years defense program 
submitted to Congress under section 221 of this title 
after the date on which such designated program is 
designated under subsection (a). 
‘‘(2) PROGRAMMING
PROPOSAL.—Each des-
ignated program shall be included by the Secretary 
concerned under a separate heading in any program-
ming proposals submitted to the Secretary of De-
fense. 
‘‘(3) PPBE 
COMPONENT.—Each designated 
program shall be considered by the Secretary con-
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cerned as an integral part of the planning, program-
ming, budgeting, and execution process of the De-
partment of Defense. 
‘‘(e) ENTREPRENEURIAL
INNOVATION
ADVISORY 
PANELS.— 
‘‘(1) ESTABLISHMENT.—For each military de-
partment, the Secretary concerned shall establish an 
advisory panel that, starting in the first fiscal year 
beginning after the date of the enactment of this 
section, and in each subsequent fiscal year, shall 
identify and recommend to the Secretary concerned 
for designation under subsection (a) eligible pro-
grams based on the criteria described in subsection 
(c)(1). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) COMPOSITION.— 
‘‘(i) IN
GENERAL.—Each advisory 
panel shall be composed of four members 
appointed by the Secretary concerned and 
one member appointed by the chief of the 
relevant armed force under the jurisdiction 
of the Secretary concerned. 
‘‘(ii) SECRETARY
CONCERNED
AP-
POINTMENTS.—The Secretary concerned 
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shall appoint members to the advisory 
panel as follows: 
‘‘(I) Three members who— 
‘‘(aa) have experience with 
private sector entrepreneurial in-
novation, including development 
and implementation of such inno-
vations into well established mar-
kets; and 
‘‘(bb) are not employed by 
the Federal Government. 
‘‘(II) One member who is in the 
Senior Executive Service in the acqui-
sition workforce (as defined in section 
1705 of this title) of the relevant mili-
tary department. 
‘‘(iii) 
SERVICE
CHIEF
APPOINT-
MENT.—The chief of an armed force under 
the jurisdiction of the Secretary concerned 
shall appoint to the advisory panel one 
member who is a member of such armed 
forces. 
‘‘(B) TERMS.— 
‘‘(i) PRIVATE
SECTOR
MEMBERS.— 
Members 
described 
in 
subparagraph 
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(A)(ii)(I) shall serve for a term of three 
years, except that of the members first ap-
pointed— 
‘‘(I) one shall serve a term of one 
year; 
‘‘(II) one shall serve a term of 
two years; and 
‘‘(III) one shall serve a term of 
three years. 
‘‘(ii) FEDERAL
GOVERNMENT
EM-
PLOYEES.—Members described in clause 
(ii)(II) or (iii) of subparagraph (A) shall 
serve for a term of two years, except that 
the first member appointed under subpara-
graph (A)(iii) shall serve for a term of one 
year. 
‘‘(C) CHAIR.—The chair for each advisory 
panel shall be as follows: 
‘‘(i) For the first year of operation of 
each such advisory panel, and every other 
year thereafter, the member appointed 
under subparagraph (A)(iii). 
‘‘(ii) For the second year of operation 
of each such advisory panel, and every 
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other year thereafter, the member ap-
pointed under subparagraph (A)(ii)(II). 
‘‘(D) VACANCIES.—A vacancy in an advi-
sory panel shall be filled in the same manner as 
the original appointment. 
‘‘(E) CONFLICT OF INTEREST.—Members 
and staff of each advisory panel shall disclose 
to the relevant Secretary concerned, and such 
Secretary concerned shall mitigate to the extent 
practicable, any professional or organizational 
conflict of interest of such members or staff 
arising from service on the advisory panel. 
‘‘(F) COMPENSATION.— 
‘‘(i) PRIVATE SECTOR MEMBER COM-
PENSATION.—Except as provided in clause 
(ii), members of an advisory panel, and the 
support staff of such members, shall be 
compensated at a rate determined reason-
able by the Secretary concerned and shall 
be reimbursed in accordance with section 
5703 of title 5 for reasonable travel costs 
and expenses incurred in performing duties 
as members of an advisory panel. 
‘‘(ii) PROHIBITION ON COMPENSATION 
OF FEDERAL EMPLOYEES.—Members of an 
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advisory panel who are full-time officers or 
employees of the United States or Mem-
bers of Congress may not receive addi-
tional pay, allowances, or benefits by rea-
son of their service on an advisory panel. 
‘‘(3) SELECTION PROCESS.— 
‘‘(A) INITIAL SELECTION.—Each advisory 
panel shall select not less than ten eligible pro-
grams that have submitted an application under 
subsection (b). 
‘‘(B) PROGRAM PLANS.— 
‘‘(i) IN GENERAL.—Each eligible pro-
gram selected under subparagraph (A) 
may submit to the advisory panel that se-
lected such eligible program a program 
plan containing the five-year goals, execu-
tion plans, schedules, and funding needs of 
such eligible program. 
‘‘(ii) SUPPORT.—Each Secretary con-
cerned shall, to the greatest extent prac-
ticable, provide eligible programs selected 
under subparagraph (A) with access to in-
formation to support the development of 
the program plans described in clause (i). 
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‘‘(C) FINAL
SELECTION.—Each advisory 
panel shall recommend to the Secretary con-
cerned for designation under subsection (a) not 
less than five eligible programs that submitted 
a program plan under subparagraph (B) to 
such advisory panel. If there are less than five 
such eligible programs, such advisory panel may 
recommend to the Secretary concerned for des-
ignation under subsection (a) less than five 
such eligible programs. 
‘‘(4) ADMINISTRATIVE
AND
TECHNICAL
SUP-
PORT.—The Secretary concerned shall provide the 
relevant advisory panel with such administrative 
support, staff, and technical assistance as the Sec-
retary concerned determines necessary for such advi-
sory panel to carry out it duties. 
‘‘(5) FUNDING.—The Secretary of Defense may 
use amounts available from the Department of De-
fense Acquisition Workforce Development Account 
established under section 1705 of this title to sup-
port the activities of advisory panels. 
‘‘(f) REVOCATION
OF DESIGNATION.—If the Sec-
retary concerned determines that a designated program 
cannot reasonably meet the objectives of such designated 
program in the relevant programming proposal referred 
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to in subsection (d)(2) or such objectives are irrelevant, 
such Secretary concerned may revoke the designation. 
‘‘(g) REPORT TO CONGRESS.—The Secretary of De-
fense shall submit to Congress an annual report describing 
each designated program and the progress each designated 
program has made toward achieving the objectives of the 
designated program. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) ADVISORY
PANEL.—The term ‘advisory 
panel’ means an advisory panel established under 
subsection (e)(1). 
‘‘(2) DESIGNATED PROGRAM.—The term ‘des-
ignated program’ means an eligible program that 
has been designated as an Entrepreneurial Innova-
tion Project under this section. 
‘‘(3) ELIGIBLE PROGRAM.—The term ‘eligible 
program’ means work performed pursuant to a 
Phase III agreement (as such term is defined in sec-
tion 9(r)(2) of the Small Business Act (15 U.S.C. 
638(r)(2))).’’. 
(2) TARGET CHAPTER TABLE OF SECTIONS.— 
The table of sections at the beginning of chapter 
303 of title 10, United States Code, is amended by 
inserting after the item related to section 4067 the 
following new item: 
‘‘4068. Entrepreneurial Innovation Project designations.’’. 
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(b) ESTABLISHMENT DEADLINE.—Not later than 
120 days after the date of the enactment of this Act, the 
Secretaries of each military department shall establish the 
advisory panels described in section 4068(e) of title 10, 
United States Code, as added by subsection (a). 
SEC. 882. EXTENSION AND MODIFICATION OF DOMESTIC IN-
VESTMENT PILOT PROGRAM. 
Section 884 of the National Defense Authorization 
Act for Fiscal Year 2020 (Public Law 116-92; 15 U.S.C. 
638 note) is amended— 
(1) in subsection (a), by striking ‘‘Not later 
than 1 year after the date of the enactment of this 
Act’’ and inserting ‘‘Not later than October 1, 
2023’’; 
(2) in subsection (c)— 
(A) by striking ‘‘Secretary of Defense may 
not use’’ and inserting the following: ‘‘Secretary 
of Defense— 
‘‘(1) may not use’’; 
(B) in paragraph (1), as so designated, by 
striking 
‘‘STTR 
program.’’ 
and 
inserting 
‘‘STTR program; and’’; and 
(C) by adding at the end the following new 
paragraph: 
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‘‘(2) shall ensure that such program complies 
with the requirements of a due diligence program es-
tablished under subsection (vv) of the Small Busi-
ness Act (15 U.S.C. 638(vv)).’’; and 
(3) in subsection (f), by striking ‘‘September 
30, 2022’’ and inserting ‘‘September 30, 2027’’. 
SEC. 883. STUDY AND REPORT ON THE EXPANSION OF THE 
STRATEGIC FUNDING INCREASE PROGRAM 
OF THE AIR FORCE. 
(a) FEASIBILITY STUDY.—The Secretary of Defense 
shall direct the heads of the offices responsible for car-
rying out the Small Business Innovation Research Pro-
grams of the Army, Navy, and Marine Corps to jointly 
conduct a study on the feasibility of implementing a cov-
ered program. 
(b) REPORT.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary shall submit to the congressional defense com-
mittees a report containing the results of the study 
required by subsection (a). 
(2) ELEMENTS.—The report required by para-
graph (1) shall include the following: 
(A) Funding levels required to successfully 
execute covered program. 
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(B) The effect that a covered program 
might have on the Small Business Innovation 
Research Programs of the Army, Navy, and 
Marine Corps, including effect on the number 
of Phase I and Phase II awards made under 
Small Business Innovation Research Program if 
a covered program was carried out. 
(C) Any additional authorities required to 
establish and carry out a covered program. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘covered program’’ means a pro-
gram similar to the STRATFI program that pro-
vides funds to support small business concerns pre-
paring to seek a Phase III award with respect to a 
project or technology for which such small business 
concern received a Phase II award. 
(2) The terms ‘‘Phase I’’, ‘‘Phase II’’, and 
‘‘Small Business Innovation Research Program’’, 
have the meanings given, respectively, in section 9(e) 
of the Small Business Act (15 U.S.C. 638(e)). 
(3) The term ‘‘small business concern’’ has the 
meaning given under section 3 of the Small Business 
Act (15 U.S.C. 632). 
(4) The term ‘‘STRATFI program’’ refers to 
the Strategic Funding Increase program of the Air 
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Force that provides funds to assist small business 
concerns with securing a Phase III agreement (as 
such term is defined in section 9(r)(2) of the Small 
Business Act (15 U.S.C. 5 638(r)(2))). 
SEC. 884. CONSIDERATION OF PAST PERFORMANCE OF AF-
FILIATES OF SMALL BUSINESS CONCERNS. 
Not later than July 1, 2024, the Secretary of Defense 
shall amend section 215.305 of the Department of De-
fense Supplement to the Federal Acquisition Regulation 
(or any successor regulation) to— 
(1) require that when evaluating a bid from a 
small business concern (as defined under section 3 
of the Small Business Act (15 U.S.C. 632)) for a 
Department of Defense contract, the contracting of-
ficer for such contract shall consider the past per-
formance information of affiliates of such concern as 
the past performance of such concern; and 
(2) ensure that only past performance informa-
tion of such affiliates during the nine-year period 
preceding the date on which such concern submitted 
a bid described in paragraph (1) is considered as 
past performance of such concern. 
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SEC. 885. REPORT ON THE AIR FORCE FIRST LOOK PRO-
GRAM AND THE ARMY FIRST STOP PROGRAM. 
(a) REPORT REQUIRED.—Not later than March 1, 
2024, the Secretary of Defense shall submit to the Com-
mittees on Armed Services of the Senate and the House 
of Representatives a report analyzing the initiatives of the 
Air Force First Look Program and the Army First Stop 
Program. 
(b) ELEMENTS.—The report required under sub-
section (a) shall include the following: 
(1) An analysis of the objectives of and results 
achieved by the Air Force First Look Program and 
the Army First Stop Program. 
(2) A description of criteria for participation in 
such Programs, including a description of contracts 
or other agreements relating to such participation. 
(3) An analysis of the costs and benefits of par-
ticipation in such Programs for all relevant parties. 
(4) A description of the geographic and organi-
zational scope of such Programs, including eligibility 
criteria, communication of opportunities to partici-
pate in such Programs, and implementation of such 
Programs. 
(5) An analysis of available data for fiscal years 
2021 through 2023 on the effectiveness of such Pro-
grams. 
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(6) An analysis of spending under such Pro-
grams 
for 
fiscal 
years 
2021 
through 
2023, 
disaggregated by— 
(A) element of the Department of Defense 
(as described in section 111(b) of title 10, 
United States Code); 
(B) military installation; 
(C) whether or not a business entity par-
ticipating in the program is a small business 
concern; and 
(D) with respect to small business concern 
participants, the North American Industrial 
Classification System code of such concern. 
(7) A description of any initiatives at other ele-
ments of the Department similar to such Programs, 
including the number of military installations at 
which such initiatives are operating and a descrip-
tion of any training offered to participants in such 
initiatives on the use of a purchase card of the De-
partment of Defense. 
(8) With respect to commercial e-commerce por-
tal providers participating in such Programs, a de-
scription of— 
(A) how such providers, in coordination 
with commanders of military installations, pro-
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HR 2670 RDS
vide outreach and education to small business 
concerns on participation in such Programs; 
(B) the use of regulatory compliance proto-
cols, including compliance with part 8 of the 
Federal Acquisition Regulation (relating to 
‘‘Required sources of supplies and services’’); 
(C) spending under such Programs for fis-
cal years 2021 through 2023, including— 
(i) the number of unique small busi-
ness concerns using the commercial e-com-
merce portal of the provider under such 
Programs; 
(ii) the North American Industrial 
Classification System code of such con-
cerns; and 
(iii) the product or service purchased 
by each such concern and the cost of each 
such product or service; and 
(D) the use of discounts or other incentives 
by such provider to encourage participation in 
such Programs. 
(9) Participation rates in such Programs by 
small business concerns, disaggregated by military 
installation and North American Industrial Classi-
fication System code of such concerns. 
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(10) Recommendations for legislative or admin-
istrative action, including a description of the re-
sources required, to improve and expand such Pro-
grams. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘Air Force First Look Program’’ 
means the program of the Department of the Air 
Force that allow. users of a purchase card of the 
Department of Defense to purchase products from a 
commercial e-commerce portal in an amount less 
than the micro-purchase threshold using such card. 
(2) The term ‘‘Army First Stop Program’’ 
means the program of the Department of the Army 
that allow. users of a purchase card of the Depart-
ment of Defense to purchase products from a com-
mercial e-commerce portal in an amount less than 
the micro-purchase threshold using such card. 
(3) The term ‘‘commercial e-commerce portal’’ 
has the meaning given in section 846 of the Na-
tional Defense Authorization Act for Fiscal Year 
2018 (41 U.S.C. 1901 note). 
(4) The term ‘‘small business concern’’ has the 
meaning given under section 3 of the Small Business 
Act (15 U.S.C. 632). 
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SEC. 886. MODIFICATION TO PILOT PROGRAM TO ACCEL-
ERATE DEPARTMENT OF DEFENSE SBIR AND 
STTR AWARDS. 
Section 9(hh)(2) of the Small Business Act (15 
U.S.C. 638(hh)(2)) is amended by inserting ‘‘and each 
Secretary of a military department’’ before ‘‘shall estab-
lish’’. 
SEC. 887. BRIEFING ON THE IMPLEMENTATION OF CAT-
EGORY MANAGEMENT MEMORANDUM. 
(a) BRIEFING REQUIRED.—Not later than 120 days 
after the date of the enactment of this Act, and annually 
thereafter, the Under Secretary of Defense for Acquisition 
and Sustainment and the Director of the Office of Small 
Business Programs of the Department of Defense shall 
jointly provide to the appropriate congressional commit-
tees a briefing on the implementation of the memorandum 
by the Under Secretary of Defense for Acquisition and 
Sustainment entitled ‘‘Achieving Small Business Goals 
through Category Management Practices’’ and dated Jan-
uary 27, 2023. 
(b) CONTENTS.—Each briefing required under sub-
section (a) shall include the following: 
(1) The effects of the implementation of the 
memorandum described in subsection (a) on con-
tracting opportunities for small businesses. 
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(2) The tools and data analysis that are being 
used to support small business concerns in procure-
ment decisions to increase small business opportuni-
ties. 
(3) The strategic efforts that have been taken 
to achieve the small business participation goals of 
the Department of Defense through the use of exist-
ing and open market contracts to reach a mix of 
new entrants, seasoned 8(a) companies, and other 
small disadvantaged businesses. 
(4) The opportunities that have been identified 
to transition from bundled or consolidated contracts 
without small business participation to contracts 
with small business participation or to use small 
business set-aside competition. 
(5) The metrics the Department of Defense has 
established to measure the effects of the implemen-
tation of the memorandum described in subsection 
(a) on opportunities for small businesses to contract 
with the Department. 
(6) The success stories of small business par-
ticipation with the Department of Defense that the 
Department has identified and is sharing in industry 
engagements. 
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(7) The sufficiency of the educational resources 
identified in the memorandum described in sub-
section (a). 
(8) Any recommendations on additional steps 
the Department of Defense can take to maximize 
small business participation with the Department 
through category management practices. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committees on Armed Services and 
Small Business of the House of Representatives; and 
(2) the Committees on Armed Services and on 
Small Business and Entrepreneurship of the Senate. 
Subtitle G—Other Matters 
SEC. 891. EMPLOYEE-OWNED BUSINESS CONTRACTING IN-
CENTIVE PILOT PROGRAM CLARIFICATION 
AND EXTENSION. 
Section 874 of the National Defense Authorization 
Act for Fiscal Year 2022 (10 U.S.C. 3204 note) is amend-
ed— 
(1) in subsection (b)— 
(A) in paragraph (2)— 
(i) by inserting ‘‘or for’’ after ‘‘serv-
ices procured by’’; and 
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(ii) by inserting ‘‘or for’’ after ‘‘may 
be procured by’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘A qualified business’’ 
and inserting ‘‘(A) IN GENERAL.—A quali-
fied business’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(B) TOTAL
AWARD
LIMIT.—Not more 
than 25 follow-on contracts may be awarded 
under this section.’’; 
(2) in subsection (e), by striking ‘‘five years’’ 
and inserting ‘‘eight years’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(g) PAPERWORK REDUCTION ACT EXEMPTION.— 
Chapter 35 of title 44, United States Code, shall not apply 
to any action taken under this section or the pilot program 
established under this section.’’. 
SEC. 892. PILOT PROGRAM ON THE USE OF BUDGET TRANS-
FER AUTHORITY FOR ARMY RESEARCH TO 
AID IN TECHNOLOGY TRANSITION. 
(a) IN GENERAL.—Upon determination by the As-
sistant Secretary of the Army for Acquisition, Logistics, 
and Technology that such action is necessary in the na-
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tional interest, the Secretary of Defense may transfer 
amounts of authorizations made available in Research and 
Development, Army, line 090A, between any covered au-
thorization or combination of covered authorizations for 
the 
purposes 
of 
procuring 
or 
otherwise 
rapidly 
transitioning new technologies at the direction of the As-
sistant Secretary. Amounts of authorizations so trans-
ferred shall be merged with and be available for the same 
purposes as the authorization to which transferred. 
(b) LIMITS.— 
(1) IN GENERAL.—The total amount of author-
izations that the Secretary of Defense may transfer 
under the authority of subsection (a) for each pro-
curement or other transition activity may not exceed 
$10,000,000. 
(2) OTHER LIMITS.—Amounts transferred pur-
suant to the authority under subsection (a) shall not 
be subject to and shall not count towards the limita-
tion under subsection (a)(2) of such section 1001. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of subsection (a) shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
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(d) COVERED AUTHORIZATION DEFINED.—In this 
section, the term ‘‘covered authorization’’ means an au-
thorization made available for fiscal year 2024 for— 
(1) Aircraft Procurement, Army; 
(2) Missile Procurement, Army; 
(3) Weapons and Tracked Combat Vehicles, 
Army; 
(4) Procurement of Ammunition, Army; 
(5) Other Procurement, Army; and 
(6) Operation and Maintenance, Army. 
SEC. 893. SEAPLANE PROCUREMENT AND EMPLOYMENT. 
(a) IN GENERAL.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees an 
analysis of the utility of, employment opportunities with 
respect to, and the feasibility of the Department of De-
fense procuring seaplanes and amphibious aircraft. 
(b) CONTENTS.—The analysis required under sub-
section (a) shall include an assessments of— 
(1) the role and effects that the use of sea-
planes and amphibious aircraft would have on the 
ability of the Armed Forces to conduct contested lo-
gistics operations across a theater of combat oper-
ations, including resupply and air-to-air refueling; 
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(2) the utility of seaplanes and amphibious air-
craft in scenarios where access to airfields required 
for the operation of existing fixed-wing, tiltrotor, 
and rotor-wing assets is limited or such airfields are 
unavailable; 
(3) the effects that the use of seaplanes and 
amphibious aircraft would have on the ability of the 
Armed Forces to conduct search and rescue oper-
ations; 
(4) the value and cost savings per flight hour 
of using seaplanes and amphibious aircraft for 
search and rescue operations as compared with the 
type, model, and series of aircraft currently used by 
the Armed Forces for such activities; 
(5) the role of seaplanes and amphibious air-
craft in enhancing the mobility of personnel in thea-
ters of combat operations and providing support 
within the expeditionary advanced basing operation 
construct; 
(6) the utility of using seaplanes and amphib-
ious aircraft to enhance long-range reconnaissance 
operations of the Armed Forces; and 
(7) options for acquiring seaplanes and amphib-
ious aircraft from allies currently fielding such plat-
forms, including alternative approaches, acquisition 
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timelines, and timelines for fielding such seaplanes 
and amphibious aircraft or domestically-produced al-
ternatives. 
(c) ARMED FORCES DEFINED.—In this section, the 
term ‘‘Armed Forces’’ has the meaning give such term in 
section 101(a) of title 10, United States Code. 
SEC. 894. LIMITATION ON AVAILABILITY OF FUNDS RELAT-
ING TO CONTRACTS WITH CONTRACT MAN-
AGERS AND AUDITORS. 
(a) REVIEW.—The Secretary of Defense shall annu-
ally review the value of contracts entered into with con-
tract managers and auditors for the purpose of managing 
contracts of the Department of Defense for a specified fis-
cal year. 
(b) CERTIFICATION.—If the Secretary spent an 
amount greater than or equal to 1 percent of the total 
value of contracts awarded during such fiscal year on such 
contracts with contract managers and auditors, the Sec-
retary shall submit a certification to the congressional de-
fense committees. 
(c) LIMITATION ON AVAILABILITY OF FUNDS.—For 
each 0.1 percent of funds expended during fiscal year 
2024 that is greater than 1 percent of total value of con-
tracts awarded during such fiscal year on such contracts 
with contract managers and auditors, of the funds author-
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ized to be appropriated by this Act or otherwise made 
available for fiscal year 2024 for the Deputy Secretary of 
Defense for the nonemergency travel, such amount shall 
be reduced by 1 percent. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘contract managers and auditors’’ 
means employees of the Department of Defense, in-
cluding members of a covered Armed Force, and 
does not include contractors of the Department. 
(2) The term ‘‘covered Armed Force’’ means 
the Army, Navy, Marine Corps, Air Force, or Space 
Force. 
SEC. 895. INSPECTOR GENERAL REPORT ON DEPARTMENT 
OF DEFENSE ACQUISITION AND CONTRACT 
ADMINISTRATION. 
Not later than March 31, 2024, the Inspector Gen-
eral of the Department of Defense shall submit to the 
Committee on Armed Services of the House of Represent-
atives a report on the status and findings of the oversight, 
reviews, audits, and inspections of the Inspector General 
regarding Department-wide acquisitions and contract 
management, including— 
(1) findings regarding the effectiveness of au-
dits and financial advisory on ensuring that the De-
partment obtains the greatest value for the lowest 
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reasonable costs under when acquiring goods and 
services, including by reducing contract costs and 
ensuring that the profit of contractors for the provi-
sion of such goods and services is reasonable; 
(2) an assessment of allowable, allocable, and 
reasonable costs and pricing for contracts; 
(3) the authorities and resources for con-
tracting officers of the Department to obtain cer-
tified cost and pricing data from contractors of the 
Department; 
(4) the authorities and resources of the Chief 
Financial Officer of the Department, the Defense 
Contract Audit Agency, and the Defense Contract 
Management Agency to determine allowable, allo-
cable, and reasonable costs and pricing for contracts. 
SEC. 896. STUDY ON THE ELECTRIC VEHICLE SUPPLY 
CHAIN. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense, 
in coordination with the relevant Federal agencies, shall 
conduct a study on the effects the national security of the 
United States of the influence of China on the electric ve-
hicle supply chain. 
(b) MATTERS
TO BE INCLUDED.—The study re-
quired by subsection (a) shall include the following: 
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(1) An evaluation of the percentage of critical 
minerals and rare earths sourced from the People’s 
Republic of China that are necessary for construc-
tion of electric vehicles in the United States. 
(2) A list of countries who contribute to the 
electric vehicle supply chain of the United States 
and who are members of People’s Republic of Chi-
na’s Belt and Road Initiative or any subsequent eco-
nomic agreement. 
(3) Potential vulnerabilities posed by an in-
creased use of electric vehicles by the vehicle fleet of 
the Department of Defense. 
SEC. 897. JOINT LIGHT TACTICAL VEHICLE FUNDING IN-
CREASE. 
(a) FUNDING.— 
(1) INCREASE.—Notwithstanding the amounts 
set forth in the funding tables in division D— 
(A) the amount authorized to be appro-
priated in section 101 for other procurement, 
Army, for the joint light tactical vehicle family, 
line 006, as specified in the corresponding fund-
ing table in section 4101, for vehicle safety data 
recorders with predictive logistics for weapons 
and 
vehicles 
is 
hereby 
increased 
by 
$14,000,000; and 
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(B) the amount authorized to be appro-
priated in section 101 for procurement, Marine 
Corp, for joint light tactical vehicles, line 045, 
as specified in the corresponding funding table 
in section 4101, for vehicle safety data record-
ers with predictive logistics for weapons and ve-
hicles is hereby increased by $1,000,000. 
(2) OFFSET.—Notwithstanding the amounts set 
forth in the funding tables in division D, the amount 
authorized to be appropriated in section 301 for ad-
ministration and Service-wide activities, for the Of-
fice of the Secretary of Defense, line 490, as speci-
fied in the corresponding funding table in section 
4301, is hereby reduced by $15,000,000. 
SEC. 898. REPORT ON GALLIUM AND GERMANIUM. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on 
gallium and germanium, including— 
(1) an analysis conducted in consultation with 
domestic producers of gallium and germanium of 
changes in supply chain dynamics, including produc-
tion capabilities and capacities, after decision by the 
People’s Republic of China to ban exports of gallium 
and germanium; 
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(2) an updated assessment of any shortfalls in 
the supply of gallium and germanium of the United 
States due to such decision; and 
(3) an update from the head of the Office of 
Manufacturing Capability Expansion and Investment 
Prioritization of the Department of Defense on the 
priority of projects involving gallium and germa-
nium, as informed by the new shortfall projections 
in the supply of gallium and germanium and na-
tional security requirements. 
SEC. 899. ASSESSMENT OF SUPPLY CHAIN CONSTRAINTS 
IMPACTING THE DEFENSE INDUSTRIAL BASE 
AND FOREIGN MILITARY SALES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
and the Secretary of State shall conduct the assessment 
described in subsection (b) and submit to the relevant con-
gressional committees a report on such assessment. 
(b) ASSESSMENT DESCRIBED.—The assessment de-
scribed in this section shall include information on con-
straints and threats to the supply chain of Department 
of Defense contractors and subcontractors (at any tier) 
to produce any defense article for use by the Department 
of Defense or that is the subject of a foreign military sale. 
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(c) FORM.—The report required under this section 
shall be submitted in an unclassified form. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘defense article’’ has the meaning 
given in section 47 of the Arms Export Control Act 
(22 U.S.C. 2794). 
(2) The term ‘‘relevant congressional commit-
tees’’ means— 
(A) the Committee on Foreign Affairs of 
the House of Representatives; 
(B) the Committee on Armed Services of 
the House of Representatives; 
(C) the Committee on Appropriations of 
the House of Representatives; 
(D) the Committee on Foreign Relations of 
the Senate; 
(E) the Committee on Armed Services of 
the Senate; and 
(F) the Committee on Appropriations of 
the Senate. 
SEC. 899A. SENSE OF CONGRESS REGARDING EXPLOSION 
WELDING. 
(a) FINDINGS.—Congress finds the following: 
(1) The joining of certain dissimilar metals, 
particularly steel with alloy metals such as stainless 
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ignated may not be an individual who served as the 
Director of Cost Assessment and Program Evalua-
tion before the date of the enactment of this Act; 
and 
(2) the personnel, functions, and assets of the 
Office of Cost Assessment and Program Evaluation 
shall be transferred to such other organizations and 
elements of the Department as the Secretary con-
siders appropriate. 
(c) REFERENCES.—Any reference in any law, regula-
tion, guidance, instruction, or other document of the Fed-
eral Government to the Director of Cost Assessment and 
Program Evaluation of the Department of Defense shall 
be deemed to refer to the applicable officer or employee 
of the Department of Defense designated by the Secretary 
of Defense under subsection (b)(1). 
(d) 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 re-
port that sets forth such recommendations for legislative 
action as the Secretary considers appropriate for modifica-
tions to law to carry out this section and the repeals and 
amendments made by this section. 
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SEC. 903. CONFORMING AMENDMENTS TO CARRY OUT 
ELIMINATION OF POSITION OF CHIEF MAN-
AGEMENT OFFICER. 
(a) REMOVAL OF REFERENCES TO CHIEF MANAGE-
MENT OFFICER IN PROVISIONS OF LAW RELATING TO 
PRECEDENCE.—Chapter 4 of title 10, United States Code, 
is amended— 
(1) in section 133a(c)— 
(A) in paragraph (1), by striking ‘‘, the 
Deputy Secretary of Defense, and the Chief 
Management Officer of the Department of De-
fense’’ and inserting ‘‘and the Deputy Secretary 
of Defense’’; and 
(B) in paragraph (2), by striking ‘‘the 
Chief Management Officer,’’; 
(2) in section 133b(c)— 
(A) in paragraph (1), by striking ‘‘the 
Chief Management Officer of the Department 
of Defense,’’; and 
(B) in paragraph (2), by striking ‘‘the 
Chief Management Officer,’’; 
(3) in section 137a(d), by striking ‘‘the Chief 
Management Officer of the Department of De-
fense,’’; and 
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(4) in section 138(d), by striking ‘‘the Chief 
Management Officer of the Department of De-
fense,’’. 
(b) ASSIGNMENT OF PERIODIC REVIEW OF DEFENSE 
AGENCIES AND DOD FIELD ACTIVITIES TO SECRETARY 
OF DEFENSE.—Section 192(c) of such title is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking ‘‘the 
Chief Management Officer of the Department 
of Defense’’ and inserting ‘‘the Secretary of De-
fense’’; and 
(B) in subparagraphs (B) and (C), by 
striking ‘‘the Chief Management Officer’’ and 
inserting ‘‘the Secretary’’; and 
(2) in paragraph (2), by striking ‘‘the Chief 
Management Officer’’ each place it appears and in-
serting ‘‘the Secretary’’. 
(c) ASSIGNMENT OF RESPONSIBILITY FOR FINAN-
CIAL
IMPROVEMENT
AND
AUDIT
REMEDIATION
TO 
UNDER SECRETARY OF DEFENSE (COMPTROLLER).—Sec-
tion 240b of such title is amended— 
(1) in subsection (a)(1), by striking ‘‘The Chief 
Management Officer of the Department of Defense 
shall, in consultation with the Under Secretary of 
Defense (Comptroller),’’ and inserting ‘‘The Under 
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