317 
‘‘(c) NOTIFICATION.—The Secretary shall notify the 
congressional defense committees annually, not later than 
March 1 of each year, of any exercise of the waiver author-
ity under subsection (b).’’. 
(c) TECHNICAL AMENDMENTS.—Section 2410f of 
such title is further amended— 
(1) in subsection (a), by inserting ‘‘ ‘DEBAR-
MENT REQUIRED.—’’ after ‘‘(a)’’; and 
(2) in subsection (d), as redesignated by sub-
section (b), by inserting ‘‘DEFINITION.—’’ before 
‘‘In this section’’. 
SEC. 829. INNOVATIVE APPROACHES TO TECHNOLOGY 
TRANSFER. 
Section 9(jj) of the Small Business Act (15 U.S.C. 
638(jj)) is amended to read as follows: 
‘‘(jj) INNOVATIVE APPROACHES
TO TECHNOLOGY 
TRANSFER.— 
‘‘(1) GRANT PROGRAM.— 
‘‘(A) IN GENERAL.—Each Federal agency 
required by subsection (n) to establish an 
STTR program shall carry out a grant program 
to support innovative approaches to technology 
transfer at institutions of higher education (as 
defined in section 101(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001(a)), non-
318 
profit research institutions and Federal labora-
tories in order to improve or accelerate the 
commercialization of federally funded research 
and technology by small business concerns, in-
cluding new businesses. 
‘‘(B) 
AWARDING
OF
GRANTS
AND 
AWARDS.— 
‘‘(i) IN
GENERAL.—Each Federal 
agency required by subparagraph (A) to 
participate in this program, shall award, 
through a competitive, merit-based process, 
grants, in the amounts listed in subpara-
graph (C) to institutions of higher edu-
cation, technology transfer organizations 
that facilitate the commercialization of 
technologies developed by one or more such 
institutions of higher education, Federal 
laboratories, other public and private non-
profit entities, and consortia thereof, for 
initiatives that help identify high-quality, 
commercially viable federally funded re-
search and technologies and to facilitate 
and accelerate their transfer into the mar-
ketplace.
319 
‘‘(ii) USE OF FUNDS.—Activities sup-
ported by grants under this subsection 
may include— 
‘‘(I) providing early-stage proof 
of concept funding for translational 
research; 
‘‘(II) identifying research and 
technologies at institutions that have 
the potential for accelerated commer-
cialization; 
‘‘(III) 
technology 
maturation 
funding to support activities such as 
prototype 
construction, 
experiment 
analysis, product comparison, and col-
lecting performance data; 
‘‘(IV) technical validations, mar-
ket research, clarifying intellectual 
property rights position and strategy, 
and investigating commercial and 
business opportunities; 
‘‘(V) programs to provide advice, 
mentoring, entrepreneurial education, 
project management, and technology 
and business development expertise to 
innovators and recipients of tech-
320 
nology transfer licenses to maximize 
commercialization potential; and 
‘‘(VI) conducting outreach to 
small business concerns as potential 
licensees of federally funded research 
and technology, and providing tech-
nology transfer services to such small 
business concerns. 
‘‘(iii) SELECTION
PROCESS
AND
AP-
PLICATIONS.—Qualifying institutions seek-
ing a grant under this subsection shall 
submit an application to a Federal agency 
required by subparagraph (A) to partici-
pate in this program at such time, in such 
manner, and containing such information 
as the agency may require. The application 
shall include, at a minimum— 
‘‘(I) a description of innovative 
approaches to technology transfer, 
technology development, and commer-
cial readiness that have the potential 
to increase or accelerate technology 
transfer outcomes and can be adopted 
by other qualifying institutions, or a 
demonstration of proven technology
321 
transfer and commercialization strate-
gies, or a plan to implement proven 
technology 
transfer 
and 
commer-
cialization strategies, that can achieve 
greater commercialization of federally 
funded research and technologies with 
program funding; 
‘‘(II) a description of how the 
qualifying institution will contribute 
to local and regional economic devel-
opment efforts; and 
‘‘(III) a plan for sustainability 
beyond the duration of the funding 
award. 
‘‘(iv) 
PROGRAM
OVERSIGHT 
BOARDS.— 
‘‘(I) IN
GENERAL.—Successful 
proposals shall include a plan to as-
semble a Program Oversight Board, 
the members of which shall have tech-
nical, scientific, or business expertise 
three-fifths of whom shall be drawn 
from industry, start-up companies, 
venture capital or other equity invest-
ment mechanism, technical enter-
322 
prises, financial institutions, and busi-
ness development organizations with a 
track record of success in commer-
cializing innovations. Proposals may 
use oversight boards in existence on 
the date of the enactment of the How-
ard P. ‘Buck’ McKeon National De-
fense Authorization Act for Fiscal 
Year 2015 that meet the requirements 
of this subclause. 
‘‘(II) 
PROGRAM
OVERSIGHT 
BOARDS
RESPONSIBILITIES.—Pro-
gram Oversight Boards shall— 
‘‘(aa) establish award pro-
grams for individual projects; 
‘‘(bb) provide rigorous eval-
uation of project applications; 
‘‘(cc) 
determine 
which 
projects should receive awards, in 
accordance with guidelines estab-
lished 
under 
subparagraph 
(C)(ii); 
‘‘(dd) establish milestones 
and associated award amounts
323 
for projects that reach mile-
stones; 
‘‘(ee) 
determine 
whether 
awarded projects are reaching 
milestones; and 
‘‘(ff) develop a process to re-
allocate 
outstanding 
award 
amounts from projects that are 
not reaching milestones to other 
projects with more potential. 
‘‘(III) 
CONFLICT
OF
INTER-
EST.—Program 
Oversight 
Boards 
shall be composed of members who do 
not have a conflict of interest. Boards 
shall adopt conflict of interest policies 
to ensure relevant relationships are 
disclosed and proper recusal proce-
dures are in place. 
‘‘(C) GRANT AND AWARD AMOUNTS.— 
‘‘(i) GRANT AMOUNTS.—Each Federal 
agency required by subparagraph (A) to 
carry out a grant program may make 
grants up to $3,000,000 to a qualifying in-
stitution.
324 
‘‘(ii) AWARD AMOUNTS.—Each quali-
fying institution that receives a grant 
under subparagraph (B) shall provide 
awards for individual projects of not more 
than $100,000, to be provided in phased 
amounts, based on reaching the milestones 
established by the qualifying institution’s 
Program Oversight Board. 
‘‘(D) AUTHORIZED
EXPENDITURES
FOR 
INNOVATIVE
APPROACHES
TO
TECHNOLOGY 
TRANSFER GRANT PROGRAM.— 
‘‘(i) PERCENTAGE.—The percentage 
of the extramural budget for research, or 
research and development, each Federal 
agency required by subsection (n) to estab-
lish an STTR program shall expend on the 
Innovative 
Approaches 
to 
Technology 
Transfer Grant Program shall be— 
‘‘(I) 0.05 percent for each of fis-
cal years 2014 and 2015; and 
‘‘(II) 0.1 percent for each of fis-
cal years 2016 and 2017. 
‘‘(ii) 
TREATMENT
OF
EXPENDI-
TURES.—Any portion of the extramural 
budget expended by a Federal agency on
325 
the Innovative Approaches to Technology 
Transfer Grant Program shall apply to-
wards the agency’s expenditure require-
ments under subsection (n). 
‘‘(2) PROGRAM
EVALUATION
AND
DATA
COL-
LECTION AND DISSEMINATION.— 
‘‘(A) EVALUATION PLAN AND DATA COL-
LECTION.—Each Federal agency required by 
paragraph (1)(A) to establish an Innovative Ap-
proaches to Technology Transfer Grant Pro-
gram shall develop a program evaluation plan 
and collect annually such information from 
grantees as is necessary to assess the Program. 
Program evaluation plans shall require the col-
lection of data aimed at identifying outcomes 
resulting from the transfer of technology with 
assistance from the Innovative Approaches to 
Technology Transfer Grant Program. Such 
data may include— 
‘‘(i) specific follow-on funding identi-
fied or obtained, including follow-on fund-
ing sources, such as Federal sources or 
private sources, within 3 years of the com-
pletion of the award;
326 
‘‘(ii) number of projects which, within 
5 years of receiving an award under para-
graph (1), result in a license to a start-up 
company or an established company with 
sufficient resources for effective commer-
cialization; 
‘‘(iii) the number of invention disclo-
sures received, United States patent appli-
cations filed, and United States patents 
issued within 5 years of the award; 
‘‘(iv) number of projects receiving a 
grant under paragraph (1) that secure 
Phase I or Phase II SBIR or STTR 
awards; 
‘‘(v) available information on revenue, 
sales or other measures of products that 
have been commercialized as a result of 
projects awarded under paragraph (1), 
within 5 years of the award; 
‘‘(vi) number and location of jobs cre-
ated resulting from projects awarded under 
paragraph (1); and 
‘‘(vii) other data as deemed appro-
priate by a Federal agency required by this
327 
subparagraph to develop a program evalua-
tion plan. 
‘‘(B) 
EVALUATIVE
REPORT
TO
CON-
GRESS.—The head of each Federal agency that 
participates in the Innovative Approaches to 
Technology Transfer Grant Program shall sub-
mit to the Committee on Science, Space, and 
Technology and the Committee on Small Busi-
ness of the House of Representatives and the 
Committee on Small Business and Entrepre-
neurship of the Senate an evaluative report re-
garding the activities of the program. The re-
port shall include— 
‘‘(i) a detailed description of the im-
plementation of the program; 
‘‘(ii) a detailed description of the 
grantee selection process; 
‘‘(iii) an accounting of the funds used 
in the program; and 
‘‘(iv) a summary of the data collected 
under subparagraph (A). 
‘‘(C) DATA DISSEMINATION.—For the pur-
poses of program transparency and dissemina-
tion of best practices, the Administrator shall 
include on the public database under subsection
328 
(k)(1) information on the Innovative Ap-
proaches to Technology Transfer Grant Pro-
gram, including— 
‘‘(i) the program evaluation plan re-
quired under subparagraph (A); 
‘‘(ii) a list of recipients by State of 
awards under paragraph (1); and 
‘‘(iii) information on the use of grants 
under paragraph (1) by recipient institu-
tions.’’. 
SEC. 830. REQUIREMENT TO BUY AMERICAN FLAGS FROM 
DOMESTIC SOURCES. 
Section 2533a(b) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(3) A flag of the United States of America 
(within the meaning of chapter 1 of title 4).’’.
329 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.— 
(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary
330 
of the Navy and Marine Corps, the Assistant 
Secretaries of the Navy and Marine Corps, and 
the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as 
follows: ‘‘The Department of the Navy and Marine 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking 
‘‘There is a Secretary of the Navy’’ and inserting 
‘‘There is a Secretary of the Navy and Marine 
Corps’’. 
(4) CHAPTER HEADINGS.—
331 
(A) The heading of chapter 503 of such 
title is amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such 
title is amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.— 
(A) Title 10, United States Code, is 
amended by striking ‘‘Department of the Navy’’ 
and ‘‘Secretary of the Navy’’ each place they 
appear other than as specified in paragraphs 
(1), (2), (3), and (4) (including in section head-
ings, subsection captions, tables of chapters, 
and tables of sections) and inserting ‘‘Depart-
ment of the Navy and Marine Corps’’ and ‘‘Sec-
retary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to 
be in the same typeface and typestyle as the 
matter stricken. 
(B)(i) 
Sections 
5013(f), 
5014(b)(2), 
5016(a), 5017(2), 5032(a), and 5042(a) of 
such title are amended by striking ‘‘Assistant
332 
Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended. 
(c) OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES.— 
(1) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘De-
partment of the Navy’’ and ‘‘Secretary of the Navy’’ 
each place they appear and inserting ‘‘Department 
of the Navy and Marine Corps’’ and ‘‘Secretary of 
the Navy and Marine Corps’’, respectively. 
(2) OTHER
REFERENCES.—Any reference in 
any law other than in title 10 or title 37, United 
States Code, or in any regulation, document, record, 
or other paper of the United States, to the Depart-
ment of the Navy shall be considered to be a ref-
erence to the Department of the Navy and Marine 
Corps. Any such reference to an office specified in
333 
subsection (a)(2) shall be considered to be a ref-
erence to that office as redesignated by that section. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act. 
SEC. 902. ADDITIONAL RESPONSIBILITY FOR DIRECTOR OF 
OPERATIONAL TEST AND EVALUATION. 
(a) ADDITIONAL RESPONSIBILITY.—Section 139 of 
title 10, United States Code, is amended— 
(1) by redesignating subsections (c), (d), (e), 
(f), (g), (h), (i), (j), and (k) as subsections (d), (e), 
(f), (g), (h), (i), (j), (k), and (l), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) The Director shall consider the potential for in-
creases in program cost estimates or delays in schedule 
estimates in the implementation of policies, procedures, 
and activities related to operational test and evaluation 
and shall take appropriate action to ensure that oper-
ational test and evaluation activities do not unnecessarily 
increase program costs or impede program schedules.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
196(c)(1)(A)(ii) of such title is amended by striking ‘‘sec-
tion 139(i)’’ and inserting ‘‘section 139(k)’’.
334 
SEC. 903. ASSISTANT SECRETARY OF DEFENSE FOR INSTAL-
LATIONS AND ENVIRONMENT. 
(a) ESTABLISHMENT OF POSITION.—Section 138(b) 
of title 10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(11) One of the Assistant Secretaries is the Assist-
ant Secretary of Defense for Installations and Environ-
ment. In addition to any duties and powers prescribed 
under paragraph (1), the Assistant Secretary of Defense 
for Installations and Environment shall have the duties 
specified in section 138e of this title.’’. 
(b) DUTIES.— 
(1) IN GENERAL.—Chapter 4 of such title is 
amended by inserting after section 138d the fol-
lowing new section: 
‘‘§ 138e. Assistant Secretary of Defense for Installa-
tions and Environment 
‘‘(a) The Assistant Secretary of Defense for Installa-
tions and Environment shall— 
‘‘(1) provide leadership and facilitate commu-
nication regarding, and conduct oversight to manage 
and be accountable for, military construction and en-
vironmental programs within the Department of De-
fense and the Army, Navy, Air Force, and Marine 
Corps;
335 
‘‘(2) coordinate and oversee planning and pro-
gramming activities of the Department of Defense 
and the Army, Navy, Air Force, and Marine Corps; 
‘‘(3) establish policies and guidance, in coordi-
nation with the Army, Navy, Air Force and Marine 
Corps, regarding installation assets and services that 
are required to support defense missions. 
‘‘(b) The Assistant Secretary may communicate views 
on issues within the responsibility of the Assistant Sec-
retary directly to the Secretary of Defense and the Deputy 
Secretary of Defense without obtaining the approval or 
concurrence of any other official within the Department 
of Defense.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 4 of such title is amended by in-
serting after the item relating to section 138c the 
following new item: 
‘‘138e. Assistant Secretary of Defense for Installations and Environment.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.— 
(A) Section 2701(k)(3) of title 10, United 
States Code, is amended by striking ‘‘Deputy 
Under Secretary of Defense for Installations 
and Environment’’ and inserting ‘‘Assistant 
Secretary of Defense for Installations and Envi-
ronment’’.
336 
(B) Section 2885(a)(3) of such title is 
amended by striking ‘‘Deputy Under Secretary 
of Defense (Installations and Environment)’’ 
and inserting ‘‘Assistant Secretary of Defense 
for Installations and Environment’’. 
(2) REFERENCES IN OTHER LAWS.—Any ref-
erence in any law, regulation, document, or other 
record of the United States to the Deputy Under 
Secretary of Defense for Installations and Environ-
ment shall be treated as referring to the Assistant 
Secretary of Defense for Installations and Environ-
ment. 
(d) NO ADDITIONAL FUNDS AUTHORIZED.—No ad-
ditional funds are authorized by this Act to accomplish 
the mission of the Assistant Secretary of Defense for In-
stallations and Environment. Such mission shall be carried 
out using amounts otherwise authorized or appropriated. 
(e) RESTRICTION ON PERSONNEL.—The number of 
positions for military and civilian personnel and the num-
ber of full-time equivalent positions for contractor per-
sonnel associated with the office of the Assistant Secretary 
of Defense for Installations and Environment shall not ex-
ceed the number of such positions that were associated 
with the Deputy Under Secretary of Defense for Installa-
337 
tions and Environment as of the date of the enactment 
of this Act. 
(f) CONSTRUCTION.—Nothing in this section or the 
amendments made by this section shall be construed as 
exempting the office of the Assistant Secretary of Defense 
for Installations and Environment from further reductions 
as part of headquarters efficiencies initiatives of the De-
partment of Defense. 
SEC. 904. REQUIREMENT FOR CONGRESSIONAL BRIEFING 
BEFORE DIVESTING OF DEFENSE FINANCE 
AND ACCOUNTING SERVICE FUNCTIONS. 
No plan may be implemented by the Secretary of De-
fense, the Secretary of a military department, the Director 
of the Defense Finance and Accounting Service, or any 
other person to transfer financial management, bill pay-
ing, or accounting services functions from the Defense Fi-
nance and Accounting Service to another entity until the 
Secretary of Defense provides the congressional defense 
committees a briefing on the plan and the Secretary cer-
tifies to such committees that the plan would reduce costs, 
increase efficiencies, maintain the timeline for auditability 
of financial statements, and maintain the roles and mis-
sions of the Defense Finance and Accounting Service.
338 
SEC. 905. COMBATANT COMMAND EFFICIENCY PLAN. 
(a) PLAN REQUIRED.—The Secretary of Defense 
shall develop a plan to combine the back office functions 
of the headquarters of two or more combatant commands, 
including the subordinate component commands. 
(b) MATTERS TO BE CONSIDERED.—The plan re-
quired by subsection (a) shall include the following: 
(1) A detailed discussion of combining or other-
wise sharing in whole or in part similar back office 
functions between two or more combatant command 
headquarters located in the same country. 
(2) A detailed discussion of combining or other-
wise sharing in whole or in part similar back office 
functions of the Joint Staff and some or all combat-
ant command headquarters. 
(3) A detailed discussion of establishing a new 
organization to manage similar back office functions 
of two or more combatant command headquarters 
located in the same country. 
(4) A detailed discussion of the risks and capa-
bilities lost by implementing such consolidations and 
efficiencies. 
(5) A detailed discussion of how the efficiencies 
and consolidations in assigned personnel and re-
sources are in support of the quadrennial defense re-
339 
view and the strategic choices and management re-
view of the Department of Defense. 
(6) Any other arrangements that the Secretary 
considers appropriate. 
(c) REPORT REQUIRED.—Not later than 120 days 
after the date of the enactment of this Act, the Secretary 
shall submit to the congressional defense committees a re-
port containing— 
(1) a summary of the plan required by sub-
section (a); and 
(2) the potential cost savings of any arrange-
ments the Secretary considers in conducting the 
study. 
(d) DEFINITIONS.—In this section: 
(1) BACK
OFFICE
FUNCTIONS.—The term 
‘‘back office functions’’ means the administration 
and support functions of a headquarters of a com-
batant command, including human resources or 
other personnel functions, budgeting, and informa-
tion technology support. 
(2) COMBATANT COMMAND.—The term ‘‘com-
batant command’’ means a combatant command es-
tablished pursuant to section 161 or 167 of title 10, 
United States Code.
340 
(e) LIMITATION.—Of the amounts authorized to be 
appropriated for fiscal year 2015 for the Department of 
Defense for operations and maintenance, defense-wide, 
Joint Chiefs of Staff, as specified in the funding table for 
section 4301, not more than 85 percent may be obligated 
or expended until the Secretary of Defense, in coordina-
tion with the Chairman of the Joint Chiefs of Staff, pro-
vides the Committee on Armed Services of the House of 
Representatives the briefing on combatant command head-
quarters personnel and resources requirements as directed 
in the Report of the Committee on Armed Services on 
H.R. 1960 of the 113th Congress (House Report 113– 
102) under title X. 
SEC. 906. REQUIREMENT FOR PLAN TO REDUCE GEO-
GRAPHIC COMBATANT COMMANDS TO FOUR 
BY FISCAL YEAR 2020. 
(a) PLAN REQUIRED.—The Secretary of Defense 
shall develop a plan for reducing the number of geographic 
combatant commands to no more than four by the end 
of fiscal year 2020. 
(b) MATTERS COVERED.—The plan required by sub-
section (a) shall include the following: 
(1) A detailed discussion of the required reduc-
tions and consolidations in assigned personnel, re-
sources, and infrastructure of the various geographic
341 
combatant commands, set forth separately by fiscal 
year, to achieve the goal of no more than four such 
commands by the end of fiscal year 2020. 
(2) A detailed discussion of the changes to the 
Unified Command Plan if such reductions and con-
solidations are implemented. 
(3) A detailed discussion and recommendations 
on the feasibility, risks, and capabilities lost by im-
plementing such reductions and consolidations. 
(c) FUNCTIONAL
COMMANDS
NOT
INCLUDED.— 
Nothing in this section shall be construed as requiring the 
Department of Defense to include changes to the func-
tional combatant commands or reductions in the func-
tional combatant commands in the plan required by sub-
section (a). 
(d) USE OF PREVIOUS STUDIES AND OUTSIDE EX-
PERTS.—In developing the plan required by subsection 
(a), the Secretary may— 
(1) use and incorporate previous plans or stud-
ies of the Department of Defense; and 
(2) consult with and incorporate views of de-
fense experts from outside the Department. 
(e) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to Congress a report containing the plan required by sub-
342 
section (a), including the feasibility and risks of such plan, 
and any recommendations to implement the plan as the 
Secretary considers appropriate. 
(f) CONSTRUCTION.—Nothing in this section shall be 
construed as requiring the Secretary to develop a binding 
plan. 
SEC. 907. OFFICE OF NET ASSESSMENT. 
(a) POLICY.—It is the policy of the United States to 
maintain an independent organization within the Depart-
ment of Defense to develop and coordinate net assess-
ments of the standing, trends, and future prospects of the 
military capabilities and potential of the United States in 
comparison with the military capabilities and potential of 
other countries or groups of countries so as to identify 
emerging or future threats or opportunities for the United 
States. 
(b) ESTABLISHMENT.— 
(1) IN GENERAL.—Chapter 4 of title 10, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘SEC. 145. OFFICE OF NET ASSESSMENT. 
‘‘(a) IN GENERAL.—There is in the Office of the Sec-
retary of Defense an office known as the Office of Net 
Assessment.
343 
‘‘(b) HEAD.—(1) The head of the Office of Net As-
sessment shall be appointed by the Secretary of Defense. 
The head shall be a member of the Senior Executive Serv-
ice. 
‘‘(2) The head of the Office of Net Assessment may 
communicate views on matters within the responsibility of 
the head directly to the Secretary without obtaining the 
approval or concurrence of any other official within the 
Department of Defense. 
‘‘(3) The head of the Office of Net Assessment shall 
report directly to the Secretary. 
‘‘(4) The Office is subject to the authority, direction, 
and control of the Secretary. The Secretary may not dele-
gate the responsibility to exercise such authority, direc-
tion, and control over the Office. 
‘‘(c) RESPONSIBILITIES.—The Office of Net Assess-
ment shall develop and coordinate net assessments with 
respect to the standing, trends, and future prospects of 
the military capabilities and potential of the United States 
in comparison with the military capabilities and potential 
of other countries or groups of countries to identify emerg-
ing or future threats or opportunities for the United 
States. 
‘‘(d) BUDGET.—In the budget materials submitted to 
the President by the Secretary of Defense in connection
344 
with the submittal to Congress, pursuant to section 1105 
of title 31, of the budget for any fiscal year after fiscal 
year 2014, the Secretary shall ensure that a separate, 
dedicated program element is assigned for the Office of 
Net Assessment. 
‘‘(e) NET ASSESSMENT DEFINED.—In this section, 
the term ‘net assessment’ means the comparative analysis 
of military, technological, political, economic, and other 
factors governing the relative military capability of na-
tions.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 4 of such title is 
amended by adding at the end the following new 
item: 
‘‘145. Office of Net Assessment.’’. 
SEC. 908. AMENDMENTS RELATING TO ORGANIZATION AND 
MANAGEMENT OF THE OFFICE OF THE SEC-
RETARY OF DEFENSE. 
(a) DEPUTY CHIEF MANAGEMENT OFFICER.—Sub-
section (b) of section 132a of title 10, United States Code, 
is amended to read as follows: 
‘‘(b) RESPONSIBILITIES.—Subject to the authority, 
direction, and control of the Secretary of Defense, the 
Deputy Chief Management Officer shall perform such du-
ties and exercise such powers as the Secretary may pre-
scribe. The Deputy Chief Management Officer shall—
345 
‘‘(1) assist the Deputy Secretary of Defense in 
the Deputy Secretary’s capacity as Chief Manage-
ment Officer of the Department of Defense under 
section 132(c) of this title and perform those duties 
assigned by the Secretary of Defense or delegated by 
the Deputy Secretary pursuant to section 904(a)(2) 
of the National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 10 U.S.C. 132 
note); 
‘‘(2) assist the Deputy Secretary of Defense in 
the Deputy Secretary’s capacity as the Chief Oper-
ating Officer of the Department of Defense under 
section 1123 of title 31; 
‘‘(3) establish policies for the strategic manage-
ment and integration of the Department of Defense 
business operations and activities; 
‘‘(4) have the responsibilities specified for the 
Deputy Chief Management Officer for the purposes 
of section 2222 of this title; and 
‘‘(5) be the Performance Improvement Officer 
of the Department of Defense for the purposes of 
section 1124(a)(1) of title 31.’’. 
(b) CHIEF INFORMATION OFFICER OF THE DEPART-
MENT OF DEFENSE.—
346 
(1) STATUTORY
ESTABLISHMENT
OF
POSI-
TION.—Chapter 4 of title 10, United States Code, is 
amended by inserting after section 141 the following 
new section: 
‘‘§ 142. Chief information officer 
‘‘(a) There is a Chief Information Officer of the De-
partment of Defense. 
‘‘(b)(1) The Chief Information Officer of the Depart-
ment of Defense— 
‘‘(A) is the Chief Information Officer of the De-
partment of Defense for the purposes of sections 
3506(a)(2) and 3544(a)(3) of title 44; 
‘‘(B) has the responsibilities and duties speci-
fied in section 11315 of title 40; and 
‘‘(C) has the responsibilities specified for the 
Chief Information Officer in sections 2222, 2223(a), 
and 2224 of this title. 
‘‘(2) The Chief Information Officer shall perform 
such additional duties and exercise such powers as the 
Secretary of Defense may prescribe. 
‘‘(c) The Chief Information Officer takes precedence 
in the Department of Defense with the officials serving 
in positions specified in section 131(b)(4) of this title. The 
officials serving in positions specified in section 131(b)(4) 
and the Chief Information Officer of the Department of
347 
Defense take precedence among themselves in the order 
prescribed by the Secretary of Defense.’’. 
(2) PLACEMENT IN THE OFFICE OF THE SEC-
RETARY OF DEFENSE.—Section 131(b) of such title 
is amended— 
(A) 
by 
redesignating 
paragraphs 
(5) 
through (8) as paragraphs (6) through (9), re-
spectively; and 
(B) by inserting after paragraph (4) the 
following new paragraph (5): 
‘‘(5) The Chief Information Officer of the De-
partment of Defense.’’. 
(c) REPEAL OF REQUIREMENT FOR DEFENSE BUSI-
NESS SYSTEM MANAGEMENT COMMITTEE.—Section 186 
of title 10, United States Code, is repealed. 
(d) ASSIGNMENT OF RESPONSIBILITY FOR DEFENSE 
BUSINESS SYSTEMS.—Section 2222 of title 10, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘and’’ at the end of para-
graph (1); 
(B) by striking ‘‘; and’’ at the end of para-
graph (2) and inserting a period; and 
(C) by striking paragraph (3);
348 
(2) in subsection (c)(1), by striking ‘‘Defense 
Business Systems Management Committee’’ and in-
serting ‘‘investment review board established under 
subsection (g)’’; and 
(3) in subsection (g)— 
(A) in paragraph (1), by striking ‘‘, not 
later than March 15, 2012,’’; 
(B) in paragraph (2)(C), by striking 
‘‘each’’ the first place it appears and inserting 
‘‘the’’; and 
(C) in paragraph (2)(F), by striking ‘‘and 
the Defense Business Systems Management 
Committee, as required by section 186(c) of 
this title,’’. 
(e) DEADLINE
FOR ESTABLISHMENT
OF INVEST-
MENT REVIEW BOARD AND INVESTMENT MANAGEMENT 
PROCESS.—The investment review board and investment 
management process required by section 2222(g) of title 
10, United States Code, as amended by subsection (d)(3), 
shall be established not later than March 15, 2015. 
(f) AMENDMENTS RELATING
TO CERTAIN PRE-
SCRIBED ASSISTANT SECRETARY
OF DEFENSE POSI-
TIONS.—Chapter 4 of title 10, United States Code, is fur-
ther amended as follows:
349 
(1) ASSISTANT SECRETARY OF DEFENSE FOR 
LOGISTICS AND MATERIEL READINESS.—Paragraph 
(7) of section 138(b) is amended— 
(A) by inserting after ‘‘Readiness’’ in the 
first sentence the following: ‘‘, who shall be ap-
pointed from among persons with an extensive 
background in the sustainment of major weap-
ons systems and combat support equipment’’; 
(B) by striking the second sentence; 
(C) by transferring to the end of that 
paragraph (as amended by subparagraph (B)) 
the text of subsection (b) of section 138a of 
such title; 
(D) by transferring to the end of that 
paragraph (as amended by subparagraph (C)) 
the text of subsection (c) of section 138a of 
such title; and 
(E) 
by 
redesignating 
paragraphs 
(1) 
through (3) in the text transferred by subpara-
graph (D) of this paragraph as subparagraphs 
(A) through (C), respectively. 
(2) ASSISTANT SECRETARY OF DEFENSE FOR 
RESEARCH
AND
ENGINEERING.—Paragraph (8) of 
such section is amended—
350 
(A) by striking the second sentence and in-
serting the text of subsection (a) of section 
138b; 
(B) by inserting after the text added by 
subparagraph (A) of this paragraph the fol-
lowing: ‘‘The Assistant Secretary, in consulta-
tion with the Deputy Assistant Secretary of De-
fense for Developmental Test and Evaluation, 
shall—’’; 
(C) by transferring paragraphs (1) and (2) 
of subsection (b) of section 138b to the end of 
that paragraph (as amended by subparagraphs 
(A) and (B) of this paragraph), indenting those 
paragraphs 2 ems from the left margin, and re-
designating those paragraphs as subparagraphs 
(A) and (B), respectively; 
(D) in subparagraph (A) (as so transferred 
and redesignated)— 
(i) by striking ‘‘The Assistant Sec-
retary’’ and all that follows through ‘‘Test 
and Evaluation, shall’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(E) in subparagraph (B) (as so transferred 
and redesignated), by striking ‘‘The Assistant
351 
Secretary’’ and all that follows through ‘‘Test 
and Evaluation, shall’’. 
(3) ASSISTANT SECRETARY OF DEFENSE FOR 
NUCLEAR, CHEMICAL, AND
BIOLOGICAL
DEFENSE 
PROGRAMS.—Paragraph (10) of such section is 
amended— 
(A) by striking the second sentence and in-
serting the text of subsection (b) of section 
138d; and 
(B) by inserting after the text added by 
subparagraph (A) of this paragraph the text of 
subsection (a) of such section and in that text 
as so inserted— 
(i) by striking ‘‘of Defense for Nu-
clear, Chemical, and Biological Defense 
Programs’’ and 
(ii) by redesignating paragraphs (1) 
through (3) as subparagraphs (A) through 
(C), respectively. 
(4) REPEAL OF SEPARATE SECTIONS.—Sections 
138a, 138b, and 138d are repealed. 
(g) CODIFICATION OF RESTRICTIONS ON USE OF 
THE DEPUTY UNDER SECRETARY OF DEFENSE TITLE.—
352 
(1) CODIFICATION.—Section 137a(a) of title 
10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(3) The officials authorized under this section shall 
be the only Deputy Under Secretaries of Defense.’’. 
(2) CONFORMING REPEAL.—Section 906(a)(2) 
of the National Defense Authorization Act for Fiscal 
Year 2010 (Public Law 111–84; 123 Stat. 2426; 10 
U.S.C. 137a note) is repealed. 
(3) CONFORMING
AMENDMENT
FOR
THE
VA-
CANCY REFORM ACT OF 1998.—Section 137a(b) of 
such title is amended by striking ‘‘is absent or dis-
abled’’ and inserting ‘‘dies, resigns, or is otherwise 
unable to perform the functions and duties of the of-
fice’’. 
(h) CLARIFICATION OF ORDER OF PRECEDENCE FOR 
THE PRINCIPAL DEPUTY UNDER SECRETARIES OF DE-
FENSE
AND
THE
ASSISTANT
SECRETARIES
OF
DE-
FENSE.— 
(1) Subsection (d) of section 137a of title 10, 
United States Code, is amended by striking ‘‘and 
the Deputy Chief Management Officer of the De-
partment of Defense’’ and inserting ‘‘the Deputy 
Chief Management Officer of the Department of De-
fense, and the officials serving in the positions speci-
353 
fied in section 131(b)(4) of this title and the Chief 
Information Officer of the Department of Defense’’. 
(2) Subsection (d) of section 138 of such title 
is amended by inserting ‘‘and the Chief Information 
Officer of the Department of Defense’’ after ‘‘section 
131(b)(4) of this title’’. 
(i) CONFORMING AMENDMENT TO PRIOR REDUCTION 
IN THE NUMBER OF ASSISTANT SECRETARIES OF DE-
FENSE.—Section 5315 of title 5, United States Code, is 
amended by striking ‘‘Assistant Secretaries of Defense 
(16)’’ and inserting ‘‘Assistant Secretaries of Defense 
(14)’’. 
(j) CLERICAL AND CONFORMING AMENDMENTS.— 
Title 10, United States Code, is amended as follows: 
(1) The table of sections at the beginning of 
chapter 4 is amended— 
(A) by striking the items relating to sec-
tions 138a, 138b, and 138d; and 
(B) by inserting after the item relating to 
section 141 the following new item: 
‘‘142. Chief Information Officer.’’. 
(2) Section 131(b)(8), as redesignated by sub-
section (b)(2)(A), is amended— 
(A) by redesignating subparagraphs (A) 
through (H) as subparagraphs (B) through (I), 
respectively; and
354 
(B) by inserting before subparagraph (B), 
as redesignated by subparagraph (A) of this 
paragraph, the following new subparagraph (A): 
‘‘(A) The two Deputy Directors within the 
Office of the Director of Cost Assessment and 
Program Evaluation under section 139a(c) of 
this title.’’. 
(3) Section 132(b) is amended by striking ‘‘is 
disabled or there is no Secretary of Defense’’ and in-
serting ‘‘dies, resigns, or is otherwise unable to per-
form the functions and duties of the office’’. 
(4) The table of sections at the beginning of 
chapter 7 is amended by striking the item relating 
to section 186. 
SEC. 909. PERIODIC REVIEW OF DEPARTMENT OF DEFENSE 
MANAGEMENT HEADQUARTERS. 
(a) PLAN REQUIRED.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall develop a plan for implementing a periodic 
review and analysis of the Department of Defense per-
sonnel requirements for management headquarters. 
(b) ELEMENTS OF PLAN.—The plan required by sub-
section (a) shall include the following for each covered or-
ganization:
355 
(1) A list of the key Department of Defense 
strategic guidance, policy, and mission requirements, 
including the quadrennial defense review, the Uni-
fied Command Plan, and the strategic choices and 
management review. 
(2) A description of how current management 
headquarters are structured to execute the Depart-
ment of Defense strategic guidance, policy, and mis-
sion requirements listed under paragraph (1). 
(3) A description of the critical capabilities and 
skillsets required by management headquarters to 
execute Department of Defense strategic guidance in 
order to fulfill mission objectives. 
(4) An identification and analysis of the factors 
that directly or indirectly influence or contribute to 
the expense of Department of Defense management 
headquarters. 
(5) A description of the proposed timeline and 
required resources necessary to implement a perma-
nent periodic review and analysis of Department of 
Defense personnel requirements for management 
headquarters. 
(c) COVERED ORGANIZATION.—In this section, the 
term ‘‘covered organization’’ includes each of the fol-
lowing:
356 
(1) The Office of the Secretary of Defense. 
(2) The Joint Staff. 
(3) The Defense Agencies. 
(4) The Department of Defense field activities. 
(5) The headquarters of the combatant com-
mands. 
(6) Headquarters, Department of the Army, in-
cluding the Office of the Secretary of the Army, the 
Office of the Chief of Staff of the Army, and the 
Army Staff. 
(7) The major command headquarters of the 
Army. 
(8) The Office of the Secretary of the Navy, the 
Office of the Chief of Naval Operations, and Head-
quarters, United States Marine Corps. 
(9) The major command headquarters of the 
Navy and the Marine Corps. 
(10) Headquarters, Department of the Air 
Force, including the Office of the Secretary of the 
Air Force, the Office of the Air Force Chief of Staff, 
and the Air Staff. 
(11) The major command headquarters of the 
Air Force. 
(12) The National Guard Bureau.
357 
(d) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees the plan required 
by subsection (a). 
(e) AMENDMENTS.—Section 904(d)(2) of the Na-
tional Defense Authorization Act for Fiscal Year 2014 
(Public Law 113–66; 127 Stat. 816; 10 U.S.C. 111 note) 
is amended— 
(1) by striking ‘‘2016’’ and inserting ‘‘2017’’; 
(2) in subparagraph (B), by inserting ‘‘, con-
solidations,’’ after ‘‘through changes’’; 
(3) in subparagraph (C)— 
(A) by inserting ‘‘, consolidations,’’ after 
‘‘through changes’’; and 
(B) by inserting ‘‘, or other associated cost 
drivers, including a discussion of how the 
changes, consolidations, or reductions were 
prioritized,’’ after ‘‘programs and offices’’; 
(4) in subparagraph (E), by inserting ‘‘, includ-
ing the risks of, and capabilities gained or lost by 
implementing, such modifications’’ before the period; 
and 
(5) by adding at the end the following new sub-
paragraphs:
358 
‘‘(F) A description of how the plan sup-
ports or affects current Department of Defense 
strategic guidance, policy, and mission require-
ments, including the quadrennial defense re-
view, the Unified Command Plan, and the stra-
tegic choices and management review. 
‘‘(G) A description of the associated costs 
specifically addressed by the savings.’’. 
SEC. 910. REPORT RELATED TO NUCLEAR FORCES, DETER-
RENCE, 
NONPROLIFERATION, 
AND 
TER-
RORISM. 
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 dis-
cussing how the Department of Defense will manage its 
mission with respect to issues related to nuclear forces, 
deterrence, nonproliferation, and terrorism.
359 
Subtitle B—Total Force 
Management 
SEC. 911. MODIFICATIONS TO BIENNIAL STRATEGIC WORK-
FORCE PLAN RELATING TO SENIOR MANAGE-
MENT, FUNCTIONAL, AND TECHNICAL WORK-
FORCE OF THE DEPARTMENT OF DEFENSE. 
(a) 
SENIOR
MANAGEMENT
WORKFORCE.—Sub-
section (c) of section 115b of title 10, United States Code, 
is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) Each strategic workforce plan under subsection 
(a) shall— 
‘‘(A) include a separate chapter to specifically 
address the shaping and improvement of the senior 
management workforce of the Department of De-
fense; and 
‘‘(B) include an assessment of the senior func-
tional and technical workforce of the Department of 
Defense within the appropriate functional commu-
nity.’’; and 
(2) in paragraph (2), by striking ‘‘such senior 
management, functional, and technical workforce’’ 
and inserting ‘‘such senior management workforce 
and such senior functional and technical workforce’’.
360 
(b) HIGHLY QUALIFIED EXPERTS.—Such section is 
further amended— 
(1) in subsection (b)(2), by striking ‘‘subsection 
(f)(1)’’ in subparagraphs (D) and (E) and inserting 
‘‘subsection (h)(1) or (h)(2)’’; 
(2) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(3) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) HIGHLY QUALIFIED EXPERTS.— 
‘‘(1) Each strategic workforce plan under sub-
section (a) shall include an assessment of the work-
force of the Department of Defense comprised of 
highly qualified experts appointed pursuant to sec-
tion 9903 of title 5 (in this subsection referred to as 
the ‘HQE workforce’). 
‘‘(2) For purposes of paragraph (1), each plan 
shall include, with respect to the HQE workforce— 
‘‘(A) an assessment of the critical skills 
and competencies of the existing HQE work-
force and projected trends in that workforce 
based on expected losses due to retirement and 
other attrition; 
‘‘(B) specific strategies for attracting, com-
pensating, and motivating the HQE workforce
361 
of the Department, including the program ob-
jectives of the Department to be achieved 
through such strategies and the funding needed 
to implement such strategies; 
‘‘(C) any incentives necessary to attract or 
retain HQE personnel; 
‘‘(D) any changes that may be necessary in 
resources or in the rates or methods of pay 
needed to ensure the Department has full ac-
cess to appropriately qualified personnel; and 
‘‘(E) any legislative changes that may be 
necessary to achieve HQE workforce goals.’’. 
(c) DEFINITIONS.—Subsection (h) of such section (as 
redesignated by subsection (b)(2)) is amended to read as 
follows: 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘senior management workforce of 
the Department of Defense’ includes the following 
categories of Department of Defense civilian per-
sonnel: 
‘‘(A) Appointees in the Senior Executive 
Service under section 3131 of title 5. 
‘‘(B) Persons serving in the Defense Intel-
ligence Senior Executive Service under section 
1606 of this title.
362 
‘‘(2) The term ‘senior functional and technical 
workforce of the Department of Defense’ includes 
the following categories of Department of Defense 
civilian personnel: 
‘‘(A) Persons serving in positions described 
in section 5376(a) of title 5. 
‘‘(B) Scientists and engineers appointed 
pursuant to section 342(b) of the National De-
fense Authorization Act for Fiscal Year 1995 
(Public Law 103–337; 108 Stat. 2721), as 
amended by section 1114 of the Floyd D. 
Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public 
Law 106–398 (114 Stat. 1654A–315)). 
‘‘(C) Scientists and engineers appointed 
pursuant to section 1101 of the Strom Thur-
mond National Defense Authorization Act for 
Fiscal Year 1999 (5 U.S.C. 3104 note). 
‘‘(D) Persons serving in Intelligence Senior 
Level positions under section 1607 of this title. 
‘‘(3) The term ‘acquisition workforce’ includes 
individuals designated under section 1721 of this 
title as filling acquisition positions.’’. 
(d) CONFORMING AMENDMENT.—The heading of 
subsection (c) of such section is amended to read as fol-
363 
lows: ‘‘SENIOR
MANAGEMENT
WORKFORCE; SENIOR 
FUNCTIONAL AND TECHNICAL WORKFORCE.—’’. 
SEC. 912. REPEAL OF EXTENSION OF COMPTROLLER GEN-
ERAL REPORT ON INVENTORY. 
Section 803(c) of the National Defense Authorization 
Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 
2402), as amended by section 951(b) of the National De-
fense Authorization Act for Fiscal Year 2014 (Public Law 
113–66; 127 Stat. 839), is amended by striking ‘‘2013, 
2014, and 2015’’ and inserting ‘‘and 2013’’. 
SEC. 913. ASSIGNMENT OF CERTAIN NEW REQUIREMENTS 
BASED ON DETERMINATIONS OF COST-EFFI-
CIENCY. 
(a) AMENDMENT.—Chapter 146 of title 10, United 
States Code, is amended by inserting after section 2463 
the following new section: 
‘‘§ 2463a. Assignment of certain new requirements 
based on determinations of cost-effi-
ciency 
‘‘(a) ASSIGNMENTS BASED ON DETERMINATIONS OF 
COST-EFFICIENCY.—(1) Except as provided in paragraph 
(2) and subject to subsection (b), the assignment of per-
formance of a new requirement by the Department of De-
fense to military personnel, civilian personnel, or con-
tractor personnel shall be based on a determination of
364 
which sector of the Department’s workforce can perform 
the services in the most cost-efficient manner, based on 
an analysis of the costs to the Federal Government in ac-
cordance with Department of Defense Instruction 7041.04 
(‘Estimating and Comparing the Full Costs of Civilian 
and Active Duty Military Manpower and Contract Sup-
port’) or successor guidance. 
‘‘(2) Paragraph (1) shall not apply in the case of a 
new requirement that is inherently governmental, closely 
associated with inherently governmental functions, crit-
ical, or required by law to be performed by military per-
sonnel or civilian personnel. 
‘‘(3) Nothing in this section may be construed as af-
fecting the requirements of the Department of Defense 
under policies and procedures established by the Secretary 
of Defense under section 129a of this title for determining 
the most appropriate and cost-efficient mix of military, ci-
vilian, and contractor personnel to perform the mission of 
the Department of Defense. 
‘‘(b) WAIVER
AUTHORITY.—(1) Notwithstanding 
subsection (a), the Secretary of a military department, the 
commander of a combatant command, or the head of a 
Defense Agency or activity may waive such subsection and 
assign performance of a new requirement without a deter-
387 
1204; 10 U.S.C. 113 note) is amended by striking sub-
section (d). 
SEC. 1003. AUTHORITY TO TRANSFER FUNDS TO THE NA-
TIONAL NUCLEAR SECURITY ADMINISTRA-
TION TO SUSTAIN NUCLEAR WEAPONS MOD-
ERNIZATION AND NAVAL REACTORS. 
(a) TRANSFER AUTHORIZED.—If the amount author-
ized to be appropriated for the weapons activities of the 
National Nuclear Security Administration under section 
3101 or otherwise made available for fiscal year 2015 is 
less than $8,700,000,000 (the amount projected to be re-
quired for such activities in fiscal year 2015 as specified 
in the report under section 1251 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111– 
84; 123 Stat. 2549)), the Secretary of Defense may trans-
fer, from amounts authorized to be appropriated for the 
Department of Defense for fiscal year 2015 pursuant to 
this Act, to the Secretary of Energy an amount, not to 
exceed $150,000,000, to be available only for naval reac-
tors or weapons activities of the National Nuclear Security 
Administration. 
(b) NOTICE TO CONGRESS.—In the event of a trans-
fer under subsection (a), the Secretary of Defense shall 
promptly notify Congress of the transfer, and shall include
390 
‘‘(C) the defense information technology 
system program is necessary to prevent a sig-
nificant adverse effect on a project that is need-
ed to achieve an essential capability, taking into 
consideration the alternative solutions for pre-
venting such adverse effect; and 
‘‘(2) the covered defense information technology 
system program has been reviewed and certified by 
the investment review board established under sub-
section (e). 
‘‘(b) ENTERPRISE ARCHITECTURE FOR DEFENSE IN-
FORMATION TECHNOLOGY SYSTEMS.—(1) The Secretary 
of Defense shall develop an enterprise architecture, known 
as the joint information technology enterprise architec-
ture, to cover all defense information technology systems, 
and the functions and activities supported by defense in-
formation technology systems, which shall be sufficiently 
defined to effectively guide, constrain, and permit imple-
mentation of interoperable defense information technology 
system solutions and consistent with the policies and pro-
cedures established by the Director of the Office of Man-
agement and Budget. 
‘‘(2) The Secretary of Defense shall delegate respon-
sibility and accountability for the defense information 
technology enterprise architecture content, including un-
402 
(8) To combat these destabilizing threats, 
through a variety of authorities, the Department of 
Defense advises, trains, educates, and equips vetted 
troops in Mexico and many of the nations of Central 
America to build their militaries and police forces, 
with an emphasis on human rights and building 
partnership capacity. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the Department of Defense should continue 
to focus on combating illicit networking routes in 
Mexico and Central America; 
(2) United States Northern Command and 
United States Southern Command should continue 
to work together to combat the transnational nature 
of these threats; and 
(3) the Department of Defense should increase 
its maritime, aerial and intelligence, surveillance, 
and reconnaissance assets in the region in order to 
reduce the amount of illicit networking flowing into 
the United States.