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in program delays or increased costs, and no acquisi-
tion programmatic approvals shall be required out-
side of the military service organization, with the ex-
ception of approval of the Director of Operational 
Test and Evaluation of the Test and Evaluation Mas-
ter Plan; and 
‘‘(B) the Secretary of the military department 
concerned and the chief of the Armed Force concerned 
shall, in each Selected Acquisition Report required 
under section 2432 of this title, certify that program 
requirements are stable and funding is adequate to 
meet cost, schedule, and performance objectives for the 
program and identify and report to the congressional 
defense committees on any increased risk to the pro-
gram since the last report.’’. 
(b) CONFORMING AMENDMENT.—Section 133(b)(5) of 
such title is amended by inserting before the period at the 
end the following: ‘‘, except that the Under Secretary shall 
exercise only advisory authority over service acquisition 
programs for which the service acquisition executive is the 
milestone decision authority’’. 
(c) IMPLEMENTATION.— 
(1) IMPLEMENTATION PLAN.—Not later than 180 
days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional
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defense committees a plan for implementing sub-
section (d) of section 2430 of title 10, United States 
Code, as added by subsection (a) of this section. 
(2) GUIDANCE.—The Deputy Chief Management 
Officer of the Department of Defense, in consultation 
with the Under Secretary of Defense for Acquisition, 
Technology and Logistics and the service acquisition 
executives, shall issue guidance to ensure that by not 
later than October 1, 2016, the acquisition policy, 
guidance, and practices of the Department of Defense 
conform to the requirements of subsection (d) of sec-
tion 2430 of title 10, United States Code, as added 
by subsection (a) of this section. The guidance shall 
be designed to ensure a streamlined decision-making 
and approval process and to minimize any informa-
tion requests, consistent with the requirement of para-
graph (4)(A) of such subsection (d). 
(3) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall take effect on October 
1, 2016. 
SEC. 844. REVISION OF MILESTONE A DECISION AUTHORITY 
RESPONSIBILITIES FOR MAJOR DEFENSE AC-
QUISITION PROGRAMS. 
(a) REVISION TO MILESTONE A REQUIREMENTS.—
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(1) IN
GENERAL.—Section 2366a of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2366a. Major defense acquisition programs: respon-
sibilities at Milestone A approval 
‘‘(a) RESPONSIBILITIES.—Before granting Milestone A 
approval for a major defense acquisition program or a 
major subprogram, the milestone decision authority for the 
program or subprogram shall ensure that— 
‘‘(1) information about the program or subpro-
gram is sufficient to warrant entry of the program or 
subprogram into the risk reduction phase; 
‘‘(2) the Secretary of the relevant military de-
partment and the chief of the relevant military service 
concur in cost, schedule, technical feasibility, and per-
formance trade-offs that have been made with regard 
to the program; and 
‘‘(3) there are sound plans for progression of the 
program or subprogram to the development phase. 
‘‘(b) CONSIDERATIONS.—In carrying out subsection 
(a), the milestone decision authority shall take appropriate 
action to ensure that— 
‘‘(1) the program or subprogram— 
‘‘(A) meets a joint military requirement 
and responds to an anticipated or likely threat;
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‘‘(B) has been developed in light of appro-
priate market research and a review of alter-
native approaches and does not unnecessarily 
duplicate a capability already provided by an 
existing system; and 
‘‘(C) is affordable in light of cost estimates 
developed pursuant to the guidance of the Direc-
tor of Cost Assessment and Program Evaluation; 
and 
‘‘(2) the acquisition strategy for the program or 
subprogram— 
‘‘(A) identifies areas of risk and, for each 
such identified area of risk, includes a plan to 
reduce the risk; 
‘‘(B) addresses planning for sustainment; 
and 
‘‘(C) complies with the requirements of sec-
tion 2431a of this title and the policies and pro-
cedures implementing such section; and 
‘‘(3) the program or subprogram meets any other 
considerations the milestone decision authority con-
siders relevant. 
‘‘(c) NOTIFICATION.—Not later than 30 days after 
granting Milestone A approval for a major defense acquisi-
tion program or major subprogram, the milestone decision
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authority for that program or subprogram shall submit to 
the congressional defense committees notice of the approval 
in writing. The milestone decision authority’s decision 
memorandum with respect to such approval shall be avail-
able to the congressional defense committees upon request, 
consistent with any relevant classification requirements. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ means a Department of Defense acquisition 
program that is a major defense acquisition program 
for purposes of section 2430 of this title. 
‘‘(2) The term ‘major subprogram’ means a 
major subprogram of a major defense acquisition pro-
gram designated under section 2430a(a)(1) of this 
title. 
‘‘(3) The term ‘milestone decision authority’, 
with respect to a major defense acquisition program 
or a major subprogram, means the official within the 
Department of Defense designated with the overall re-
sponsibility and authority for acquisitions decisions 
for the program or subprogram, including authority 
to approve entry of the program or subprogram into 
the next phase of the acquisition process. 
‘‘(4) The term ‘Milestone A approval’ means a 
decision to enter into a risk reduction phase pursuant
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to guidance prescribed by the Secretary of Defense for 
the management of Department of Defense acquisition 
programs. 
‘‘(5) The term ‘joint military requirement’ has 
the meaning given that term in section 181(g)(1) of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 139 of such title is 
amended by striking the item relating to section 
2366a and inserting the following: 
‘‘2366a. Major defense acquisition programs: responsibilities at Milestone A ap-
proval.’’. 
(b) CONSIDERATIONS IN MAKING MILESTONE A DE-
TERMINATIONS.—In making a Milestone A determination 
pursuant to section 2366a of title 10, United States Code, 
the milestone decision authority shall include consideration 
of the following: 
(1) With respect to joint military requirements, 
the factors outlined under section 181(b) of title 10, 
United States Code. 
(2) With respect to alternative approaches, the 
factors outlined under section 201(a) of the Weapon 
Systems Acquisition Reform Act of 2009 (Public Law 
111–23; 10 U.S.C. 2302 note).
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(3) With respect to affordability and cost esti-
mates and analyses, the factors outlined under section 
2334(a) of title 10, United States Code. 
(4) With respect to risk, the factors outlined 
under— 
(A) section 138b(b) of title 10, United 
States Code; and 
(B) section 842. 
(5) With respect to sustainment, the factors out-
lined under section 2337 and section 2464 of this title 
10, United States Code. 
SEC. 845. REVISION OF MILESTONE B DECISION AUTHORITY 
RESPONSIBILITIES FOR MAJOR DEFENSE AC-
QUISITION PROGRAMS. 
(a) REVISION TO MILESTONE B REQUIREMENTS.— 
Section 2366b of title 10, United Stated Code, is amended 
to read as follows: 
‘‘§ 2366b. Major defense acquisition programs: certifi-
cation required before Milestone B ap-
proval 
‘‘(a) CERTIFICATION.—A major defense acquisition 
program may not receive Milestone B approval until the 
milestone decision authority certifies that the technology in 
the program has been demonstrated in a relevant environ-
ment, as determined by the Milestone Decision Authority
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on the basis of an independent review and assessment by 
the Assistant Secretary of Defense for Research and Engi-
neering, in consultation with the Deputy Assistant Sec-
retary of Defense for Developmental Test and Evaluation. 
‘‘(b) DETERMINATION.—A major defense acquisition 
program may not receive Milestone B approval until the 
milestone decision authority determines that appropriate 
steps have been taken to ensure that— 
‘‘(1) the program is affordable when considering 
the ability of the Department of Defense to accomplish 
the program’s mission using alternative systems; 
‘‘(2) trade-offs among cost, schedule, technical 
feasibility, and performance objectives have been made 
to ensure that the program is affordable when consid-
ering the per unit cost and the total acquisition cost 
in the context of the total resources available during 
the period covered by the future-years defense pro-
gram submitted during the fiscal year in which the 
certification is made; 
‘‘(3) the Secretary of the relevant military de-
partment and the chief of the relevant military service 
concur in the trade-offs made in accordance with 
paragraph (2); 
‘‘(4) reasonable cost and schedule estimates have 
been developed to execute, with the concurrence of the
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Director of Cost Assessment and Program Evaluation, 
the product development and production plan under 
the program; 
‘‘(5) funding is available to execute the product 
development and production plan under the program, 
through the period covered by the future-years defense 
program submitted during the fiscal year in which 
the certification is made, consistent with the estimates 
described in paragraph (4) for the program; 
‘‘(6) market research has been conducted prior to 
technology development to reduce duplication of exist-
ing technology and products; 
‘‘(7) the Department of Defense has completed an 
analysis of alternatives and a business case analysis 
with respect to the program; 
‘‘(8) the Joint Requirements Oversight Council 
has accomplished its duties with respect to the pro-
gram pursuant to section 181(b) of this title, includ-
ing an analysis of the operational requirements for 
the program; 
‘‘(9) life-cycle sustainment planning, including 
corrosion prevention and mitigation planning, has 
identified and evaluated relevant sustainment costs 
throughout 
development, 
production, 
operation, 
sustainment, and disposal of the program, and any
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alternatives, and that such costs are reasonable and 
have been accurately estimated; 
‘‘(10) an estimate has been made of the require-
ments for core logistics capabilities and the associated 
sustaining workloads required to support such re-
quirements; 
‘‘(11) there is a plan to mitigate and account for 
any costs in connection with any anticipated de-cer-
tification of cryptographic systems and components 
during the production and procurement of the major 
defense acquisition program to be acquired; 
‘‘(12) a preliminary design review or assessment 
of engineering design knowledge of the system has 
been satisfactorily completed; and 
‘‘(13) the program complies with all relevant 
policies, regulations, and directives of the Department 
of Defense. 
‘‘(c) CHANGES TO CERTIFICATION.—(1) The program 
manager for a major defense acquisition program that has 
received milestone B approval under this section shall im-
mediately notify the milestone decision authority of any 
changes to the program or a designated major subprogram 
of such program that— 
‘‘(A) alter the substantive basis for the certifi-
cation of the milestone decision authority under sub-
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section (a) or any element of the determination of the 
milestone decision authority under subsection (b); or 
‘‘(B) otherwise cause the program or subprogram 
to deviate significantly from the material provided to 
the milestone decision authority in support of such 
certification or determination. 
‘‘(2) Upon receipt of information under paragraph (1), 
the milestone decision authority may withdraw the certifi-
cation or determination concerned or rescind Milestone B 
approval if the milestone decision authority determines that 
such certification, determination, or approval is no longer 
valid. 
‘‘(d) SUBMISSION
TO CONGRESS.—(1) The certifi-
cation required under subsection (a) and the determination 
under subsection (b) with respect to a major defense acquisi-
tion program shall be submitted to the congressional defense 
committees with the first Selected Acquisition Report sub-
mitted under section 2432 of this title after completion of 
the certification. 
‘‘(2) A summary of any information provided to the 
milestone decision authority pursuant to subsection (c) and 
a description of the actions taken as a result of such infor-
mation shall be submitted with the first Selected Acquisi-
tion Report submitted under section 2432 of this title after
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receipt of such information by the milestone decision au-
thority. 
‘‘(e) WAIVER FOR NATIONAL SECURITY.—(1) The mile-
stone decision authority may waive the applicability to a 
major defense acquisition program of the certification re-
quirement in subsection (a) or one or more components of 
the determination requirement in subsection (b) if the mile-
stone decision authority determines that, but for such a 
waiver, the Department would be unable to meet critical 
national security objectives. 
‘‘(2) Whenever the milestone decision authority makes 
such a determination and authorizes such a waiver the 
waiver, the determination, and the reasons for the deter-
mination shall be submitted in writing to the congressional 
defense committees within 30 days after the waiver is au-
thorized. 
‘‘(f) NONDELEGATION.—The milestone decision author-
ity may not delegate the certification requirement under 
subsection (a), the determination requirement under sub-
section (b), or the authority to waive any component of such 
requirement under subsection (e). 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ means a Department of Defense acquisition
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program that is a major defense acquisition program 
for purposes of section 2430 of this title. 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense acqui-
sition program designated under section 2430a(a)(1) 
of this title. 
‘‘(3) The term ‘milestone decision authority’, 
with respect to a major defense acquisition program, 
means the individual within the Department of De-
fense designated with overall responsibility for the 
program. 
‘‘(4) The term ‘Milestone B approval’ has the 
meaning provided that term in section 2366(e)(7) of 
this title. 
‘‘(5) The term ‘core logistics capabilities’ means 
the core logistics capabilities identified under section 
2464(a) of this title.’’. 
(b) CONSIDERATIONS IN MAKING MILESTONE B DE-
TERMINATIONS.—In making a Milestone B determination 
pursuant to section 2366b of title 10, United States Code, 
the milestone decision authority shall review the acquisition 
strategy required by section 2431a of title 10, as added by 
section 841 of this Act and include consideration of the fol-
lowing:
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(1) With respect to affordability, the factors out-
lined under section 2334 of title 10, United States 
Code. 
(2) With respect to risk, the factors outlined 
under— 
(A) section 842; and 
(B) section 138b(b) of title 10, United 
States Code. 
(3) With respect to fulfilling a joint military re-
quirement, the factors outlined under section 181 of 
title 10, United States Code. 
(4) With respect to competition— 
(A) the factors outlined under section 202 of 
the Weapon Systems Acquisition Reform Act of 
2009 (Public Law 111–23; 10 U.S.C. 2430 note); 
and 
(B) the requirements of section 2304 of title 
10, United States Code. 
(5) With respect to sustainment, the factors out-
lined under section 2337 and section 2464 of title 10, 
United States Code. 
(c) CONFORMING CHANGE.—Section 2334(a) of title 
10, United States Code, is amended in paragraph (6)(A)(i) 
by striking ‘‘any certification under’’ and inserting in lieu
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thereof ‘‘any decision to grant milestone approval pursuant 
to’’. 
SEC. 846. TENURE AND ACCOUNTABILITY OF PROGRAM 
MANAGERS FOR PROGRAM DEVELOPMENT 
PERIODS. 
(a) REVISED GUIDANCE REQUIRED.—Not later than 
180 days after date of the enactment of this Act, the Sec-
retary of Defense shall revise Department of Defense guid-
ance for defense acquisition programs to address the tenure 
and accountability of program managers for the program 
development period of defense acquisition programs. 
(b) PROGRAM DEVELOPMENT PERIOD.—For the pur-
pose of this section, the term ‘‘program development period’’ 
refers to the period before a decision on Milestone B ap-
proval (or Key Decision Point B approval in the case of 
a space program). 
(c) RESPONSIBILITIES.—The revised guidance re-
quired by subsection (a) shall provide that the program 
manager for the program development period of a defense 
acquisition program is responsible for— 
(1) bringing to maturity the technologies and 
manufacturing processes that will be needed to carry 
out the program;
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(2) ensuring continuing focus during program 
development on meeting stated mission requirements 
and other requirements of the Department of Defense; 
(3) making trade-offs between program cost, 
schedule, and performance for the life-cycle of the pro-
gram; 
(4) developing a business case for the program; 
and 
(5) ensuring that appropriate information is 
available to the milestone decision authority to make 
a decision on Milestone B approval (or Key Decision 
Point B approval in the case of a space program), in-
cluding information necessary to make the certifi-
cation required by section 2366a of title 10, United 
States Code. 
(d) QUALIFICATIONS, RESOURCES, AND TENURE.— 
The Secretary of Defense shall ensure that each program 
manager for the program development period of a defense 
acquisition program— 
(1) has the appropriate management, engineer-
ing, technical, and financial expertise needed to meet 
the responsibilities assigned pursuant to subsection 
(c); 
(2) is provided the resources and support (in-
cluding systems engineering expertise, cost estimating
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expertise, and software development expertise) needed 
to meet such responsibilities; and 
(3) is assigned to the program manager position 
for such program until such time as such program is 
ready for a decision on Milestone B approval (or Key 
Decision Point B approval in the case of a space pro-
gram), unless removed for cause or due to exceptional 
circumstances. 
SEC. 847. TENURE AND ACCOUNTABILITY OF PROGRAM 
MANAGERS FOR PROGRAM EXECUTION PERI-
ODS. 
(a) REVISED GUIDANCE REQUIRED.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise Department of Defense 
guidance for defense acquisition programs to address the 
tenure and accountability of program managers for the pro-
gram execution period of defense acquisition programs. 
(b) PROGRAM EXECUTION PERIOD.—For purposes of 
this section, the term ‘‘program execution period’’ refers to 
the period after Milestone B approval (or Key Decision 
Point B approval in the case of a space program). 
(c) RESPONSIBILITIES.—The revised guidance re-
quired by subsection (a) shall— 
(1) require the program manager for the pro-
gram execution period of a defense acquisition pro-
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gram to enter into a performance agreement with the 
milestone decision authority for such program within 
six months of assignment, that— 
(A) establishes expected parameters for the 
cost, schedule, and performance of the program 
consistent with the business case for the program; 
(B) provides the commitment of the mile-
stone decision authority to provide the level of 
funding and resources required to meet such pa-
rameters; and 
(C) provides the assurance of the program 
manager that such parameters are achievable 
and that the program manager will be account-
able for meeting such parameters; and 
(2) provide the program manager with the au-
thority to— 
(A) veto the addition of new program re-
quirements that would be inconsistent with the 
parameters established in the performance agree-
ment entered into pursuant to paragraph (1), 
subject to the authority of the Under Secretary of 
Defense for Acquisition, Technology, and Logis-
tics to override the veto based on critical na-
tional security reasons;
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(B) make trade-offs between cost, schedule, 
and performance, provided that such trade-offs 
are consistent with the parameters established in 
the performance agreement entered into pursuant 
to paragraph (1); 
(C) redirect funding within such program, 
to the extent necessary to achieve the parameters 
established in the performance agreement entered 
into pursuant to paragraph (1); 
(D) develop such interim goals and mile-
stones as may be required to achieve the param-
eters established in the performance agreement 
entered into pursuant to paragraph (1); and 
(E) use program funds to recruit and hire 
such technical experts as may be required to 
carry out the program, if necessary expertise is 
not otherwise provided by the Department of De-
fense. 
(d) QUALIFICATIONS, RESOURCES, AND TENURE.— 
The Secretary shall ensure that each program manager for 
the program execution period of a defense acquisition pro-
gram— 
(1) has the appropriate management, engineer-
ing, technical, and financial expertise needed to meet
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the responsibilities assigned pursuant to subsection 
(c); 
(2) is provided the resources and support (in-
cluding systems engineering expertise, cost estimating 
expertise, and software development expertise) needed 
to meet such responsibilities; and 
(3) is assigned to the program manager position 
for such program at the time of Milestone B approval 
(or Key Decision Point B approval in the case of a 
space program) and continues in such position until 
the delivery of the first production units of the pro-
gram, unless removed for cause or due to exceptional 
circumstances. 
(e) LIMITED WAIVER AUTHORITY.—The Secretary 
may waive the requirement in paragraph (3) of subsection 
(d) that a program manager for the program execution pe-
riod of a defense acquisition program serve in that position 
until the delivery of the first production units of such pro-
gram upon submitting to the congressional defense commit-
tees a written determination that— 
(1) the program is so complex, and the delivery 
of the first production units will take so long, that it 
would not be feasible for a single individual to serve 
as program manager for the entire period covered by 
such paragraph; and
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(2) the complexity of the program, and length of 
time that will be required to deliver the first produc-
tion units, are not the result of a failure to meet the 
certification requirements under section 2366a of title 
10, United States Code. 
SEC. 848. REPEAL OF REQUIREMENT FOR STAND-ALONE 
MANPOWER ESTIMATES FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
(a) REPEAL OF REQUIREMENT.—Subsection (a)(1) of 
section 2434 of title 10, United States Code, is amended 
by striking ‘‘and a manpower estimate for the program 
have’’ and inserting ‘‘has’’. 
(b) CONFORMING AMENDMENTS RELATING TO REGU-
LATIONS.—Subsection (b) of such section is amended— 
(1) by striking paragraph (2); 
(2) by striking ‘‘shall require—’’ and all that 
follows through ‘‘that the independent’’ and inserting 
‘‘shall require that the independent’’; 
(3) by redesignating subparagraphs (A) and (B) 
as paragraphs (1) and (2), respectively, and moving 
those paragraphs, as so redesignated, two ems to the 
left; and 
(4) in paragraph (2), as so redesignated— 
(A) by striking ‘‘and operations and sup-
port,’’ and inserting ‘‘operations and support,
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and manpower to operate, maintain, and sup-
port the program upon full operational deploy-
ment,’’; and 
(B) by striking ‘‘; and’’ and inserting a pe-
riod. 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such sec-
tion is amended to read as follows: 
‘‘§ 2434. Independent cost estimates’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 144 of such title is 
amended by striking the item relating to section 2434 
and inserting the following: 
‘‘2434. Independent cost estimates.’’. 
SEC. 849. PENALTY FOR COST OVERRUNS. 
(a) IN GENERAL.—For each fiscal year beginning with 
fiscal year 2015, the Secretary of each military department 
shall pay a penalty for cost overruns on the covered major 
defense acquisition programs of the military department. 
(b) CALCULATION OF PENALTY.—For the purposes of 
this section: 
(1) The amount of the cost overrun or underrun 
on any major defense acquisition program or subpro-
gram in a fiscal year is the difference between the 
current program acquisition unit cost for the pro-
gram or subprogram and the program acquisition
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unit cost for the program as shown in the original 
Baseline Estimate for the program or subprogram, 
multiplied by the quantity of items to be purchased 
under the program or subprogram, as reported in the 
final Selected Acquisition Report for the fiscal year in 
accordance with section 2432 of title 10, United 
States Code. 
(2) Cost overruns or underruns for covered major 
defense acquisition programs that are joint programs 
of more than one military department shall be allo-
cated among the military departments in percentages 
determined by the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics. 
(3) The cumulative amount of cost overruns for 
a military department in a fiscal year is the sum of 
the cost overruns and cost underruns for all covered 
major defense acquisition programs of the department 
in the fiscal year (including cost overruns or 
underruns allocated to the military department in ac-
cordance with paragraph (2)). 
(4) The cost overrun penalty for a military de-
partment in a fiscal year is three percent of the cu-
mulative amount of cost overruns of the military de-
partment in the fiscal year, as determined pursuant
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to paragraph (3), except that the cost overrun penalty 
may not be a negative amount. 
(c) TRANSFER OF FUNDS.— 
(1) REDUCTION OF RESEARCH, DEVELOPMENT, 
TEST, AND EVALUATION ACCOUNTS.—Not later than 
60 days after the end of each fiscal year beginning 
with fiscal year 2015, the Secretary of each military 
department shall reduce each research, development, 
test, and evaluation account of the military depart-
ment by the percentage determined under paragraph 
(2), and remit such amount to the Secretary of De-
fense. 
(2) DETERMINATION OF AMOUNT.—The percent-
age reduction to research, development, test, and eval-
uation accounts of a military department referred to 
in paragraph (1) is the percentage reduction to such 
accounts necessary to equal the cost overrun penalty 
for the fiscal year for such department determined 
pursuant to subsection (b)(4). 
(3) CREDITING OF FUNDS.—Any amount remit-
ted under paragraph (1) shall be credited to the 
Rapid Prototyping Fund established pursuant to sec-
tion 803 of this Act. 
(d) COVERED PROGRAMS.—A major defense acquisi-
tion program is covered under this section if the original
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Baseline Estimate was established for such program under 
section 2435(d) (1) or (2) on or after the date of the enact-
ment of the Weapon Systems Acquisition Reform Act of 
2009 (Public Law 111–23). 
SEC. 850. STREAMLINING OF REPORTING REQUIREMENTS 
APPLICABLE TO ASSISTANT SECRETARY OF 
DEFENSE FOR RESEARCH AND ENGINEERING 
REGARDING MAJOR DEFENSE ACQUISITION 
PROGRAMS. 
(a) REPORTING TO UNDER SECRETARY OF DEFENSE 
FOR ACQUISITION, TECHNOLOGY, AND LOGISTICS BEFORE 
MILESTONE B APPROVAL.—Subparagraph (A) of para-
graph (8) of section 138(b) of title 10, United States Code, 
as amended by section 901(h)(2) of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense Authoriza-
tion Act for Fiscal Year 2015 (Public Law 113–291; 128 
Stat. 3466), is further amended— 
(1) by striking ‘‘periodically’’; 
(2) by striking ‘‘the major defense acquisition 
programs’’ and inserting ‘‘each major defense acquisi-
tion program’’; 
(3) by inserting ‘‘before the Milestone B approval 
for that program’’ after ‘‘Department of Defense’’; 
and
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(4) by striking ‘‘such reviews and assessments’’ 
and inserting ‘‘such review and assessment’’. 
(b) ANNUAL REPORT TO SECRETARY OF DEFENSE AND 
CONGRESSIONAL DEFENSE COMMITTEES.—Subparagraph 
(B) of such paragraph is amended by inserting ‘‘for which 
a Milestone B approval occurred during the preceding fiscal 
year’’ after ‘‘Department of Defense’’. 
SEC. 851. CONFIGURATION STEERING BOARDS FOR COST 
CONTROL UNDER MAJOR DEFENSE ACQUISI-
TION PROGRAMS. 
Section 814(c)(1) of the Duncan Hunter National De-
fense Authorization Act for Fiscal Year 2009 (Public Law 
110–417; 122 Stat. 4529) is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as subparagraphs (B), (C), and (D), respec-
tively; and 
(2) by inserting after ‘‘for the following:’’ the fol-
lowing new subparagraph: 
‘‘(A) Monitoring changes in program re-
quirements and ensuring all such changes receive 
the approval of the Chief of the relevant military 
service, in consultation with the Secretary of the 
relevant military department.’’.
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SEC. 852. SUSTAINMENT ENHANCEMENT. 
(a) ASSESSMENT EXPANSION OF FUNCTIONS OF AS-
SISTANT SECRETARY OF DEFENSE FOR LOGISTICS AND MA-
TERIEL READINESS TO INCLUDE SUSTAINMENT FUNC-
TIONS.—Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report setting forth 
an assessment of the feasibility and advisability of— 
(1) assigning to the Assistant Secretary of De-
fense for Logistics and Materiel Readiness— 
(A) functions relating to the sustainment 
strategy required under section 2431a(c)(9) of 
Title 10, United States Code, as added by section 
841 of this Act; and 
(B) functions relating to manufacturing 
and industrial base policy currently being car-
ried out within the Office of the Secretary of De-
fense; and 
(2) redesignating such Assistant Secretary (with 
such functions so assigned and together with the cur-
rent logistics and material readiness functions of such 
Assistant Secretary) as the Assistant Secretary of De-
fense for Sustainment. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that—
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(1) the Department of Defense does not place suf-
ficient emphasis on sustainment of a weapon system 
during the entire acquisition process; and 
(2) the Department of Defense should address 
this deficiency and ensure that all aspect of weapon 
system sustainment are carefully considered through-
out the entire Integrated Defense Acquisition, Tech-
nology, and Logistics Life Cycle Management System. 
Subtitle D—Provisions Relating to 
Commercial Items 
SEC. 861. INAPPLICABILITY OF CERTAIN LAWS AND REGU-
LATIONS TO THE ACQUISITION OF COMMER-
CIAL ITEMS AND COMMERCIALLY AVAILABLE 
OFF-THE-SHELF ITEMS. 
(a) AMENDMENT
TO TITLE 10, UNITED STATES 
CODE.—Section 2375 of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 2375. Relationship of commercial item provisions to 
other provisions of law 
‘‘(a) APPLICABILITY
OF GOVERNMENT-WIDE STAT-
UTES.—(1) No contract for the procurement of a commer-
cial item entered into by the head of an agency shall be 
subject to any law properly listed in the Federal Acquisition 
Regulation pursuant to section 1906(b) of title 41.
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‘‘(2) No subcontract under a contract for the procure-
ment of a commercial item entered into by the head of an 
agency shall be subject to any law properly listed in the 
Federal Acquisition Regulation pursuant to section 1906(c) 
of title 41. 
‘‘(3) No contract for the procurement of a commer-
cially available off-the-shelf item entered into by the head 
of an agency shall be subject to any law properly listed in 
the Federal Acquisition Regulation pursuant to section 
1907 of title 41. 
‘‘(b) APPLICABILITY OF DEFENSE-UNIQUE STATUTES 
TO CONTRACTS FOR COMMERCIAL ITEMS.—(1) The Defense 
Federal Acquisition Regulation Supplement shall include 
a list of defense-unique provisions of law that are inappli-
cable to contracts for the procurement of commercial items. 
A provision of law properly included on the list pursuant 
to paragraph (2) does not apply to purchases of commercial 
items by the Department of Defense. This section does not 
render a provision of law not included on the list inappli-
cable to contracts for the procurement of commercial items. 
‘‘(2) A provision of law described in subsection (e) that 
is enacted after January 1, 2015, shall be included on the 
list of inapplicable provisions of law required by paragraph 
(1) unless the Under Secretary of Defense for Acquisition, 
Technology, and Logistics makes a written determination
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that it would not be in the best interest of the Department 
of Defense to exempt contracts for the procurement of com-
mercial items from the applicability of the provision. 
‘‘(c) APPLICABILITY OF DEFENSE-UNIQUE STATUTES 
TO SUBCONTRACTS FOR COMMERCIAL ITEMS.—(1) The De-
fense Federal Acquisition Regulation Supplement shall in-
clude a list of provisions of law that are inapplicable to 
subcontracts under a Department of Defense contract or 
subcontract for the procurement of commercial items. A pro-
vision of law properly included on the list pursuant to 
paragraph (2) does not apply to those subcontracts. This 
section does not render a provision of law not included on 
the list inapplicable to subcontracts under a contract for 
the procurement of commercial items. 
‘‘(2) A provision of law described in subsection (e) 
shall be included on the list of inapplicable provisions of 
law required by paragraph (1) unless the Under Secretary 
of Defense for Acquisition, Technology, and Logistics makes 
a written determination that it would not be in the best 
interest of the Department of Defense to exempt subcontracts 
under a contract for the procurement of commercial items 
from the applicability of the provision. 
‘‘(3) In this subsection, the term ‘subcontract’ includes 
a transfer of commercial items between divisions, subsidi-
aries, or affiliates of a contractor or subcontractor. The term
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does not include agreements entered into by a contractor 
for the supply of commodities that are intended for use in 
the performance of multiple contracts with the Department 
of Defense and other parties and are not identifiable to any 
particular contract. 
‘‘(4) This subsection does not authorize the waiver of 
the applicability of any provision of law with respect to 
any first-tier subcontract under a contract with a prime 
contractor reselling or distributing commercial items of an-
other contractor without adding value. 
‘‘(d) APPLICABILITY OF DEFENSE-UNIQUE STATUTES 
TO CONTRACTS FOR COMMERCIALLY AVAILABLE, OFF-THE- 
SHELF ITEMS.—(1) The Defense Federal Acquisition Regu-
lation Supplement shall include a list of provisions of law 
that are inapplicable to contracts for the procurement of 
commercially available off-the-shelf items. A provision of 
law properly included on the list pursuant to paragraph 
(2) does not apply to Department of Defense contracts for 
the procurement of commercially available off-the-shelf 
items. This section does not render a provision of law not 
included on the list inapplicable to contracts for the pro-
curement of commercially available off-the-shelf items. 
‘‘(2) A provision of law described in subsection (e) 
shall be included on the list of inapplicable provisions of 
law required by paragraph (1) unless the Under Secretary
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of Defense for Acquisition, Technology, and Logistics makes 
a written determination that it would not be in the best 
interest of the Department of Defense to exempt contracts 
for the procurement of commercially available off-the-shelf 
items from the applicability of the provision. 
‘‘(e) COVERED PROVISION OF LAW.—A provision of 
law referred to in subsections (b)(2), (c)(2), and (d)(2) is 
a provision of law that the Under Secretary of Defense for 
Acquisition, Technology, and Logistics determines sets forth 
policies, procedures, requirements, or restrictions for the 
procurement of property or services by the Federal Govern-
ment, except for a provision of law that— 
‘‘(1) provides for criminal or civil penalties; or 
‘‘(2) specifically refers to this section and pro-
vides that, notwithstanding this section, it shall be 
applicable to contracts for the procurement of com-
mercial items.’’. 
(b) CHANGES TO DEFENSE FEDERAL ACQUISITION 
REGULATION SUPPLEMENT.— 
(1) IN GENERAL.—To the maximum extent prac-
ticable, the Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics shall ensure that— 
(A) the Defense Federal Acquisition Regula-
tion Supplement does not require the inclusion of 
contract clauses in contracts for the procurement
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of commercial items or contracts for the procure-
ment of commercially available off-the-shelf 
items, unless such clauses are— 
(i) required to implement provisions of 
law or executive orders applicable to such 
contracts; or 
(ii) determined to be consistent with 
standard commercial practice; and 
(B) the flow-down of contract clauses to sub-
contracts under contracts for the procurement of 
commercial items or commercially available off- 
the-shelf items is prohibited unless such flow- 
down is required to implement provisions of law 
or executive orders applicable to such sub-
contracts. 
(2) SUBCONTRACTS.—In this subsection, the 
term ‘‘subcontract’’ includes a transfer of commercial 
items between divisions, subsidiaries, or affiliates of a 
contractor or subcontractor. The term does not include 
agreements entered into by a contractor for the supply 
of commodities that are intended for use in the per-
formance of multiple contracts with the Department 
of Defense and other parties and are not identifiable 
to any particular contract.
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(c) REPORT ON INCLUSION OF CONTRACT CLAUSES.— 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the con-
gressional defense committees a report listing all standard 
contract clauses included in contracts awarded using com-
mercial acquisition procedures under part 12 of the Federal 
Acquisition Regulation, including a justification for the in-
clusion of each such clause. 
SEC. 862. MARKET RESEARCH AND PREFERENCE FOR COM-
MERCIAL ITEMS. 
(a) GUIDANCE REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics 
shall issue guidance to ensure that acquisition officials of 
the Department of Defense fully comply with the require-
ments of section 2377 of title 10, United States Code, re-
garding market research and commercial items. The guid-
ance issued pursuant to this subsection shall, at a min-
imum— 
(1) provide that the head of an agency may not 
enter into a contract in excess of the simplified acqui-
sition threshold for information technology products 
or services that are not commercial items unless the 
head of the agency determines in writing that no 
commercial items are suitable to meet the agency’s
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needs as provided in subsection (c)(2) of such section; 
and 
(2) ensure that market research conducted in ac-
cordance with subsection (c) of such section is used, 
where appropriate, to inform price reasonableness de-
terminations. 
(b) REVIEW REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Chairman 
and the Vice Chairman of the Joint Chiefs of Staff, in con-
sultation with the Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics, shall review Chairman of 
the Joint Chiefs of Staff Instruction 3170.01, the Manual 
for the Operation of the Joint Capabilities Integration and 
Development System, and other documents governing the re-
quirements development process and revise these documents 
as necessary to ensure that the Department of Defense fully 
complies with the requirement in section 2377(c) of title 
10, United States Code, and section 10.001 of the Federal 
Acquisition Regulation for Federal agencies to conduct ap-
propriate market research before developing new require-
ments. 
(c) MARKET RESEARCH DEFINED.—For the purposes 
of this section, the term ‘‘market research’’ means a review 
of existing systems, subsystems, capabilities, and tech-
nologies that are available or could be made available to
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meet the needs of the Department of Defense in whole or 
in part. The review may include any of the techniques for 
conducting 
market 
research 
provided 
in 
section 
10.002(b)(2) of the Federal Acquisition Regulation and 
shall include, at a minimum, contacting knowledgeable in-
dividuals in Government and industry regarding existing 
market capabilities. 
SEC. 863. CONTINUING VALIDITY OF COMMERCIAL ITEM DE-
TERMINATIONS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Defense Federal Acqui-
sition Regulation Supplement shall be modified to address 
the validity of commercial item determinations for multiple 
procurements. 
(b) REQUIRED
ELEMENTS.—The modification re-
quired by paragraph (1) shall, at a minimum— 
(1) provide that a written determination by an 
authorized agency official that an item is a commer-
cial item for the purposes of section 2306a of title 10, 
United States Code, shall be presumed to be valid for 
any subsequent procurement unless the contracting of-
ficer for such procurement determines in writing that 
the earlier determination was made in error or was 
based on inadequate information; and
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(2) establish a process by which the contractor 
may appeal a determination by a contracting officer 
that an earlier determination was made in error or 
was based on inadequate information to the head of 
contracting for the agency. 
(c) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to preclude the contracting officer for the 
procurement of a commercial item from requiring the con-
tractor to supply information that is sufficient to determine 
the reasonableness of price, regardless whether or not the 
contractor was required to provide such information in con-
nection with any earlier procurement. 
SEC. 864. TREATMENT OF COMMERCIAL ITEMS PURCHASED 
AS MAJOR WEAPON SYSTEMS. 
(a) AMENDMENTS TO REQUIREMENTS RELATED TO 
MAJOR WEAPON SYSTEMS.—Section 2379 of title 10, 
United States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘section 4(12) of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403(12))’’ 
and inserting ‘‘section 103 of title 41, 
United States Code’’; and
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(ii) in subparagraph (B), by striking 
the semicolon at the end and inserting ‘‘; 
and’’; 
(B) by striking paragraph (2); and 
(C) by redesignating paragraph (3) as 
paragraph (2); 
(2) in subsection (b)— 
(A) by striking ‘‘section 35(c) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 
431(c))’’ and inserting ‘‘section 104 of title 41, 
United States Code,’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘in writing that—’’ 
and all that follows through ‘‘(A) the sub-
system’’ and inserting ‘‘in writing that the 
subsystem’’; 
(ii) by striking ‘‘section 4(12) of the 
Office of Federal Procurement Policy Act 
(41 U.S.C. 403(12)); and’’ and inserting 
‘‘section 103 of title 41, United States 
Code.’’; and 
(iii) by striking subparagraph (B); 
(3) in subsection (c)(1)— 
(A) by striking ‘‘section 35(c) of the Office 
of Federal Procurement Policy Act (41 U.S.C.
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431(c))’’ and inserting ‘‘section 104 of title 41, 
United States Code,’’; and 
(B) in subparagraph (B)— 
(i) by striking ‘‘in writing that—’’ 
and all that follows through ‘‘(i) the compo-
nent’’ and inserting ‘‘in writing that the 
component’’; 
(ii) by striking ‘‘section 4(12) of the 
Office of Federal Procurement Policy Act 
(41 U.S.C. 403(12)); and’’ and inserting 
‘‘section 103 of title 41, United States 
Code.’’; and 
(iii) by striking clause (ii); and 
(4) by amending subsection (d) to read as fol-
lows: 
‘‘(d) INFORMATION SUBMITTED.—(1) To the extent 
necessary to determine the reasonableness of the price for 
items acquired under this section, the contracting officer 
shall require the offeror to submit— 
‘‘(A) prices paid for the same or similar com-
mercial items under comparable terms and conditions 
by both government and commercial customers; 
‘‘(B) if the contracting officer determines that the 
offeror does not have access to and cannot provide suf-
ficient information described in subparagraph (A) to
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determine the reasonableness of price, information 
on— 
‘‘(i) prices for the same or similar items 
sold under different terms and conditions; 
‘‘(ii) prices for similar levels of work or ef-
fort on related products or services; 
‘‘(iii) prices for alternative solutions or ap-
proaches; and 
‘‘(iv) other relevant information that can 
serve as the basis for a price assessment; and 
‘‘(C) if the contracting officer determines that the 
information submitted pursuant to subparagraphs 
(A) and (B) is not sufficient to determine the reason-
ableness of price, other relevant information regarding 
the basis for price or cost, including information on 
labor costs, material costs, and overhead rates. 
‘‘(2) An offeror may not be required to submit infor-
mation described in paragraph (1)(C) with regard to a 
commercially available off-the-shelf item or any other item 
that was developed exclusively at private expense.’’. 
(b) CONFORMING AMENDMENT TO TRUTH IN NEGOTIA-
TIONS ACT.—Section 2306a(d)(1) of such title is amended 
by adding at the end the following new sentence: ‘‘If the 
contracting officer determines that the offeror does not have 
access to and cannot provide sufficient information on
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prices for the same or similar items to determine the reason-
ableness of price, the contracting officer shall require the 
submission of information on prices for similar levels or 
work or effort on related products or services, prices for al-
ternative solutions or approaches, and other information 
that is relevant to the determination of a fair and reason-
able price.’’. 
SEC. 865. LIMITATION ON CONVERSION OF PROCUREMENTS 
FROM 
COMMERCIAL 
ACQUISITION 
PROCE-
DURES. 
(a) LIMITATION.— 
(1) IN GENERAL.—The Secretary of Defense may 
not convert the procurement of commercial items or 
services from commercial acquisition procedures 
under part 12 of the Federal Acquisition Regulation 
to non-commercial acquisition procedures under part 
15 of the Federal Acquisition Regulation unless the 
Secretary, in consultation with the head of the acqui-
sition component, certifies to the congressional defense 
committees that the Department of Defense will real-
ize a significant cost savings compared to the cost of 
procuring a similar quantity or level of such item or 
service using commercial acquisition procedures.
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(2) CERTIFICATION FACTORS.—In making a cer-
tification under paragraph (1), the Secretary of De-
fense shall consider the following factors: 
(A) The estimated cost of foregone research 
and development to be performed by the existing 
contractor to improve future products or services. 
(B) The transaction costs for the Depart-
ment of Defense and the contractor in assessing 
and responding to data requests to support a 
conversion to non-commercial acquisition proce-
dures. 
(C) Changes in purchase quantities. 
(D) Costs associated with potential procure-
ment delays resulting from the conversion. 
(b) REPORTING REQUIREMENTS.— 
(1) INVENTORY.—The Secretary of Defense shall 
prepare an inventory of all contracts and sub-
contracts converted from commercial acquisition pro-
cedures to non-commercial procedures during the pre-
vious five years. 
(2) REPORTS.—Not later than one year after the 
date of the enactment of this Act, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a report on each conversion identified in the 
inventory prepared under paragraph (1) that identi-
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fies and compares per unit costs and prices paid for 
the item or service under commercial acquisition pro-
cedures with those paid under non-commercial pro-
curement procedures. 
(c) COMPTROLLER GENERAL REVIEW.— 
(1) REVIEW OF REPORTS.—Not later than 180 
days after the Secretary of Defense submits a report 
under subsection (b)(2), the Comptroller General of 
the United States shall submit to the congressional de-
fense committees a review of the accuracy of the re-
port. 
(2) RECOMMENDATIONS.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, and 
annually thereafter, the Comptroller General 
shall submit to the congressional defense commit-
tees a report including any recommendations for 
additional costs and benefits that should be con-
sidered when the Department of Defense is plan-
ning to convert a procurement of items or serv-
ices from commercial to non-commercial procure-
ment procedures. 
(B) FACTORS.—In making recommenda-
tions under subparagraph (A), the Comptroller 
General shall consider the following factors:
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(i) Industrial base considerations. 
(ii) The estimated cost of foregone re-
search and development to be performed by 
existing contractors to improve future prod-
ucts or services. 
(iii) The transaction costs for the De-
partment of Defense and contractors in as-
sessing and responding to data requests to 
support conversions to non-commercial ac-
quisition procedures. 
(iv) Costs associated with potential 
procurement delays resulting from conver-
sions. 
(d) SUNSET.—The requirements of this section shall 
terminate 5 years after the date of the enactment of this 
Act. 
SEC. 866. TREATMENT OF GOODS AND SERVICES PROVIDED 
BY NONTRADITIONAL CONTRACTORS AS COM-
MERCIAL ITEMS. 
(a) IN GENERAL.—Chapter 140 of title 10, United 
States Code, is amended by adding at the end the following 
new section:
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‘‘§ 2380. Treatment of goods and services provided by 
nontraditional contractors as commercial 
items 
‘‘Notwithstanding section 2376(1) of this title, items 
and services provided by nontraditional contractors (as that 
term is defined in section 2302(9) of this title) may be treat-
ed by the head of an agency as commercial items for pur-
poses of this chapter.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 140 of such title is amended by 
inserting after the item relating to section 2379 the fol-
lowing new item: 
‘‘2380. Treatment of goods and services provided by nontraditional contractors as 
commercial items.’’. 
Subtitle E—Other Matters 
SEC. 871. STREAMLINING OF REQUIREMENTS RELATING TO 
DEFENSE BUSINESS SYSTEMS. 
(a) STREAMLINING OF REQUIREMENTS.— 
(1) IN
GENERAL.—Section 2222 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2222. Defense business systems: business process re-
engineering; enterprise architecture; man-
agement 
‘‘(a) DEFENSE BUSINESS SYSTEMS GENERALLY.—The 
Secretary of Defense shall ensure that each covered defense
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business system developed, deployed, and operated by the 
Department of Defense— 
‘‘(1) is integrated into a comprehensive defense 
business enterprise architecture; 
‘‘(2) is managed in a manner that provides visi-
bility into, and traceability of, expenditures for the 
system; and 
‘‘(3) uses an acquisition and sustainment strat-
egy that prioritizes use of commercial software and 
business practices. 
‘‘(b) DEFENSE BUSINESS PROCESSES GENERALLY.— 
The Secretary of Defense shall ensure that defense business 
processes are reviewed, and as appropriate revised through 
business process reengineering to match best commercial 
practices, to the maximum extent practicable, so as to mini-
mize customization of commercial business systems. 
‘‘(c) ISSUANCE OF GUIDANCE.— 
‘‘(1) SECRETARY OF DEFENSE GUIDANCE.—The 
Secretary shall issue guidance to provide for the co-
ordination of, and decision making for, the planning, 
programming, and control of investments in covered 
defense business systems. 
‘‘(2) SUPPORTING
GUIDANCE.—The Secretary 
shall direct the Deputy Chief Management Officer of 
the Department of Defense, the Under Secretary of
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Defense for Acquisition, Technology, and Logistics, 
the Chief Information Officer, and the Chief Manage-
ment Officer of each of the military departments to 
issue and maintain supporting guidance for the guid-
ance of the Secretary issued under paragraph (1), 
within their respective areas of responsibility, as nec-
essary. 
‘‘(d) GUIDANCE ELEMENTS.—The guidance issued 
pursuant to subsection (c)(1) shall include the following ele-
ments: 
‘‘(1) Policy to ensure that the business processes 
of the Department of Defense are continuously evolved 
to— 
‘‘(A) implement the most streamlined and 
efficient business process practicable; and 
‘‘(B) eliminate or reduce the need to tailor 
commercial-off-the-shelf systems to meet unique 
requirements or incorporate unique requirements 
or incorporate unique interfaces to the maximum 
extent practicable. 
‘‘(2) A process to establish requirements for cov-
ered defense business systems. 
‘‘(3) Policy requiring the periodic review of cov-
ered defense business systems that have been fully de-
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ployed, by portfolio, to ensure that investments in 
such portfolios are appropriate. 
‘‘(4) Policy to ensure full consideration of sus-
tainability and technological refreshment require-
ments, and the appropriate use of open architectures. 
‘‘(e) DEFENSE BUSINESS COUNCIL.—The Secretary 
shall establish a Defense Business Council to provide advice 
to the Secretary on reengineering the Department’s business 
processes and developing and deploying defense business 
systems. The Council shall be chaired by the Deputy Chief 
Management Officer of the Department of Defense, and shall 
include membership from the public sector, defense indus-
try, and commercial industry. 
‘‘(f) APPROVALS REQUIRED FOR DEVELOPMENT.—(1) 
The Secretary shall ensure that a covered defense business 
system program cannot proceed into development (or, if no 
development is required, into production or fielding) unless 
the appropriate approval officials (as specified in para-
graph (3)) have determined that— 
‘‘(A) a business process has been, or is being, re-
engineered to be as streamlined and efficient as prac-
ticable, and the implementation of the business proc-
ess will maximize the elimination of unique software 
requirements and unique interfaces;
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‘‘(B) the system has valid, achievable require-
ments and a viable plan for implementing those re-
quirements (including, as appropriate, market re-
search, business process reengineering, and proto-
typing activities); 
‘‘(C) the system has an acquisition strategy de-
signed to eliminate or reduce the need to tailor com-
mercial-off-the-shelf systems to meet unique require-
ments or incorporate unique requirements or incor-
porate unique interfaces to the maximum extent prac-
ticable; and 
‘‘(D) the system is in compliance with the De-
partment’s auditability requirements. 
‘‘(2)(A) For any fiscal year in which funds are ex-
pended for development or sustainment pursuant to a cov-
ered defense business system program, the appropriate ap-
proval officials shall review the system and certify, certify 
with conditions, or decline to certify, as the case may be, 
that— 
‘‘(i) it continues to satisfy the requirements of 
paragraph (1); 
‘‘(ii) an acquisition program baseline has been 
established within two years of program initiation; 
and
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‘‘(iii) program requirements and have not 
changed in a manner that is increasing acquisition 
costs or schedule, without sufficient cause and only 
after maximum efforts to reengineer business processes 
prior to changing requirements. 
‘‘(B) If an approval officially determines that full cer-
tification cannot be granted, the approval official shall no-
tify the acquisition milestone decision authority for the pro-
gram and provide a recommendation for corrective action, 
and provide a copy of such recommendations to the congres-
sional defense committees within 60 days. 
‘‘(3) For purposes of paragraph (1), the appropriate 
approval officials with respect to a covered defense business 
system are the following: 
‘‘(A) In the case of a priority defense business 
system, the Deputy Chief Management Officer of the 
Department of Defense. 
‘‘(B) In the case of other covered business sys-
tems, an official designated under procedures estab-
lished by the Secretary of Defense. 
‘‘(g) RESPONSIBILITY OF MILESTONE DECISION AU-
THORITY.—The milestone decision authority for a covered 
defense business system program shall be responsible for the 
acquisition of such system and shall ensure that acquisition 
process approvals are not considered for such system until
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the relevant certifications and approvals have been made 
under this section. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) DEFENSE
BUSINESS
SYSTEM.—(A) The 
term ‘defense business system’ means an information 
system that is operated by, for, or on behalf of the De-
partment of Defense, including any of the following: 
‘‘(i) A financial system. 
‘‘(ii) A financial data feeder system. 
‘‘(iii) A contracting system. 
‘‘(iv) A logistics system. 
‘‘(v) A planning and budgeting system. 
‘‘(vi) An installations management system. 
‘‘(vii) A human resources management sys-
tem. 
‘‘(viii) A training and readiness system. 
‘‘(B) The term does not include— 
‘‘(i) a national security system; or 
‘‘(ii) an information system used exclusively 
by and within the defense commissary system or 
the exchange system or other instrumentality of 
the Department of Defense conducted for the mo-
rale, welfare, and recreation of members of the 
armed forces using nonappropriated funds.
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‘‘(2) COVERED
DEFENSE
BUSINESS
SYSTEM.— 
The term ‘covered defense business system’ means a 
defense business system that is expected to have a 
total amount of budget authority over the period of 
the current future-years defense program submitted to 
Congress under section 221 of this title, in excess of 
$50,000,000. 
‘‘(3) COVERED DEFENSE BUSINESS SYSTEM PRO-
GRAM.—The term ‘covered defense business system 
program’ means a defense acquisition program to de-
velop and field a covered defense business system or 
an increment of a covered defense business system. 
‘‘(4) PRIORITY DEFENSE BUSINESS SYSTEM PRO-
GRAM.—The term ‘priority defense business system’ 
means a defense business system that is— 
‘‘(A) expected to have a total amount of 
budget authority over the period of the current 
future-years defense program submitted to Con-
gress under section 221 of this title in excess of 
$250,000,000; or 
‘‘(B) designated by the Deputy Chief Man-
agement Officer of the Department of Defense as 
a priority defense business system, based on spe-
cific program analyses of factors including com-
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plexity, scope, and technical risk, and after noti-
fication to Congress of such designation. 
‘‘(5) ENTERPRISE
ARCHITECTURE.—The term 
‘enterprise architecture’ has the meaning given that 
term in section 3601(4) of title 44. 
‘‘(6) INFORMATION SYSTEM.—The term ‘informa-
tion system’ has the meaning given that term in sec-
tion 11101 of title 40, United States Code. 
‘‘(7) NATIONAL
SECURITY
SYSTEM.—The term 
‘national security system’ has the meaning given that 
term in section 3552(b)(2) of title 44. 
‘‘(8) MILESTONE
DECISION
AUTHORITY.—The 
term ‘milestone decision authority’, with respect to a 
defense acquisition program, means the individual 
within the Department of Defense designated with the 
responsibility to grant milestone approvals for that 
program. 
‘‘(9) BUSINESS
PROCESS
MAPPING.—The term 
‘business process mapping’ means a procedure in 
which the steps in a business process are clarified and 
documented in both written form and in a flow 
chart.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 131 of such title is 
amended to read as follows:
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‘‘2222. Defense business systems: business process reengineering; enterprise archi-
tecture; management.’’. 
(b) IMPLEMENTATION
OF
PREVIOUSLY
ENACTED 
TITLE CHANGE.—Effective February 1, 2017, section 2222 
of title 10, United States Code, as amended by subsection 
(a), is further amended by striking ‘‘the Deputy Chief Man-
agement Officer’’ each place that it appears and inserting 
‘‘the Under Secretary of Defense for Business Management 
and Information’’. 
(c) DEADLINE
FOR GUIDANCE.—The guidance re-
quired by subsection (b)(1) of section 2222 of title 10, 
United States Code, as amended by subsection (a)(1), shall 
be issued not later than December 31, 2016. 
(d) MODIFICATION OF COMPTROLLER GENERAL AS-
SESSMENT.—Section 332(d) of the Ronald W. Reagan Na-
tional Defense Authorization Act for Fiscal Year 2005 (Pub-
lic Law 108–375; 118 Stat. 1856) is amended to read as 
follows: 
‘‘(d) COMPTROLLER GENERAL ASSESSMENT.—In each 
odd-numbered year, the Comptroller General of the United 
States shall submit to the congressional defense committees 
an assessment of the extent to which the actions taken by 
the Department of Defense comply with the requirements 
of such section.’’.
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† HR 1735 PAP1S 
SEC. 872. ACQUISITION WORKFORCE. 
(a) MODIFICATIONS TO DEPARTMENT OF DEFENSE 
ACQUISITION WORKFORCE DEVELOPMENT FUND.—Section 
1705 of title 10, United States Code, is amended— 
(1) in subsection (d)— 
(A) in paragraph (2), by amending sub-
paragraph (C) to read as follows: 
‘‘(C) For purposes of this paragraph, the 
applicable percentage for a fiscal year is the per-
centage that results in the credit to the Fund of 
$500,000,000 in each fiscal year.’’; and 
(B) in paragraph (3), by striking ‘‘24- 
month period’’ and inserting ‘‘36-month period’’; 
(2) in subsection (f), by striking ‘‘60 days’’ and 
inserting ‘‘120 days’’; and 
(3) in subsection (g)(2), by striking ‘‘September 
30, 2017’’ and inserting ‘‘September 30, 2023’’. 
(b) MODIFICATIONS TO BIENNIAL STRATEGIC WORK-
FORCE PLAN.—Section 115b(d) of title 10, United States 
Code, is amended— 
(1) in paragraph (1), by striking ‘‘the defense 
acquisition workforce, including both military and ci-
vilian personnel’’ and inserting ‘‘the military, civil-
ian, and contractor personnel that directly support 
the acquisition processes of the Department of De-
fense, including persons serving in acquisition-related
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† HR 1735 PAP1S 
positions designated by the Secretary of Defense under 
section 1721 of this title’’; 
(2) in paragraph (2)(D)— 
(A) in clause (i), by striking ‘‘; and’’ and 
inserting a semicolon; 
(B) by redesignating clause (ii) as clause 
(iii); and 
(C) by inserting after clause (i) the fol-
lowing new clause: 
‘‘(ii) a description of steps that will be 
taken to address any new or expanded critical 
skills and competencies the civilian employee 
workforce will need to address recent trends in 
defense acquisition, emerging best practices, 
changes in the government and commercial mar-
ketplace, and new requirements established in 
law or regulation; and’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(3) For the purposes of paragraph (1), contractor per-
sonnel shall be treated as directly supporting the acquisition 
processes of the Department if, and to the extent that, such 
contractor personnel perform functions in support of per-
sonnel in Department of Defense positions designated by the 
Secretary of Defense under section 1721 of this title.’’.
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† HR 1735 PAP1S 
SEC. 873. UNIFIED INFORMATION TECHNOLOGY SERVICES. 
(a) BUSINESS CASE ANALYSIS.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Deputy 
Chief Management Officer, the Chief Information Of-
ficer of the Department of Defense, and the Under 
Secretary of Defense for Acquisition, Technology and 
Logistics shall jointly complete a business case anal-
ysis, using the resources of the Director of Cost Anal-
ysis and Program Evaluation, to determine the most 
effective and efficient way to procure and deploy in-
formation technology services. 
(2) ELEMENTS.—The business case analysis re-
quired by paragraph (1) shall include an assessment 
of whether the Department of Defense should— 
(A)(i) acquire a unified set of commercially 
provided common or enterprise information tech-
nology services, including such services as mes-
saging, collaboration, directory, security, and 
content delivery; or 
(ii) allow the military departments and 
other components of the Department to acquire 
such services separately; 
(B)(i) acquire such services from a single 
provider that bundles all of the services; or
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† HR 1735 PAP1S 
(ii) require that each common service be 
independently defined and use open standards to 
enable continuous adoption of best commercial 
technology; and 
(C) enable availability of multiple versions 
of each type of service and application to enable 
choice and competition while supporting inter-
operability where necessary. 
(b) GOVERNANCE MECHANISM
AND PROCESS.—Not 
later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall, in consultation with the 
Deputy Chief Management Officer and the Chief Informa-
tion Officer, establish a governance mechanism and process 
to ensure essential interoperability across Department net-
works through the imposition of a minimum set of stand-
ards or common solutions. 
SEC. 874. CLOUD STRATEGY FOR DEPARTMENT OF DE-
FENSE. 
(a) CLOUD STRATEGY FOR SECRET INTERNET PRO-
TOCOL NETWORK.— 
(1) IN GENERAL.—The Chief Information Officer 
of the Department of Defense shall, in consultation 
with the Under Secretary of Defense for Intelligence, 
the Director of National Intelligence, the Vice Chair-
man of the Joint Chiefs of Staff, the Under Secretary
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† HR 1735 PAP1S 
of Defense for Acquisition, Technology, and Logistics, 
and the chief information officers of the military de-
partments, develop a cloud strategy for the Secret 
Internet Protocol Network (SIPRNet) of the Depart-
ment. 
(2) MATTERS
ADDRESSED.—This strategy re-
quired by paragraph (1) shall address the following: 
(A) Security requirements. 
(B) The compatibility of applications cur-
rently utilized within the Secret Internet Pro-
tocol Network with a cloud computing environ-
ment. 
(C) How a Secret Internet Protocol Network 
cloud capability should be competitively ac-
quired. 
(D) How a Secret Internet Protocol Network 
cloud system would achieve interoperability with 
the cloud systems of the intelligence community 
(as defined in section 3 of the National Security 
Act of 1947 (50 U.S.C. 3003)) operating at the 
security level Sensitive Compartmented Informa-
tion. 
(b) PRICING POLICY AND COST RECOVERY PROCESS 
FOR CERTAIN CLOUD SERVICES.—The Chief Information 
Officer of the Department of Defense shall, in coordination
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† HR 1735 PAP1S 
with the Director of National Intelligence and in consulta-
tion with the Under Secretary of Defense for Intelligence, 
develop a consistent pricing policy and cost recovery process 
for the use by Department of Defense components of the 
cloud services provided through the Intelligence Community 
Information Technology Environment. 
(c) ASSESSMENT OF FEASIBILITY AND ADVISABILITY 
OF IMPOSING MINIMUM STANDARDS.— 
(1) IN GENERAL.—The Chief Information Officer 
of the Department of Defense shall assess the feasi-
bility and advisability of imposing a minimum set of 
open standards for cloud infrastructure, middle-ware, 
metadata, and application programming interfaces to 
promote interoperability, information sharing, and 
ease of access to data, and competition across all of 
the cloud computing systems and services utilized by 
components of the Department of Defense. 
(2) COORDINATION.—The Chief Information Of-
ficer shall coordinate the assessment required by para-
graph (1) with the Director of National Intelligence 
with respect to the cloud services offered through the 
Intelligence Community Information Technology En-
vironment.
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† HR 1735 PAP1S 
SEC. 875. DEVELOPMENT PERIOD FOR DEPARTMENT OF DE-
FENSE 
INFORMATION 
TECHNOLOGY 
SYS-
TEMS. 
(a) FLEXIBLE LIMITATION
ON DEVELOPMENT PE-
RIOD.—Section 2445b of title 10, United States Code is 
amended— 
(1) by redesignating subsection (d) as subsection 
(e); and 
(2) by inserting after subsection (c) the following 
new subsection: 
‘‘(d) TIME-CERTAIN DEVELOPMENT.—If the baseline 
documents prepared under subsection (c) for a major auto-
mated information system that is not a national security 
system provide for a period in excess of five years from the 
time of program initiation to the time of a full deployment 
decision, the documents submitted pursuant to subsection 
(a) shall include a written determination by the senior De-
partment of Defense official responsible for the program jus-
tifying the need for the longer period.’’. 
(b) REPEAL OF INCONSISTENT REQUIREMENTS.— 
(1) Section 2445c(c)(2) of title 10, United States 
Code, is amended— 
(A) in subparagraph (B), by striking the 
semicolon at the end and inserting ‘‘; or’’; 
(B) in subparagraph (C), by striking ‘‘; or’’ 
and inserting a period; and
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† HR 1735 PAP1S 
(C) by striking subparagraph (D), as added 
by section 802(a)(3) of the Carl Levin and How-
ard ‘‘Buck’’ McKeon National Defense Author-
ization Act for Fiscal Year 2015 (Public Law 
113–291; 128 Stat. 3427). 
(2) Section 811 of the John Warner National De-
fense Authorization Act for Fiscal Year 2007 (Public 
Law 109–364; 120 Stat. 2316) is repealed. 
SEC. 876. REVISIONS TO PILOT PROGRAM ON ACQUISITION 
OF 
MILITARY 
PURPOSE 
NON-DEVELOP-
MENTAL ITEMS. 
Section 866 of the Ike Skelton National Defense Au-
thorization Act for Fiscal Year 2011 (Public Law 111–383; 
10 U.S.C. 2302 note) is amended— 
(1) in subsection (a)(2), by striking ‘‘with non-
traditional defense contractors’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘awarded 
using competitive procedures in accordance with 
chapter 137 of title 10, United States Code’’; and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’.
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† HR 1735 PAP1S 
SEC. 877. EXTENSION OF THE DEPARTMENT OF DEFENSE 
MENTOR-PROTE´ GE´ PILOT PROGRAM. 
Section 831(j) of the National Defense Authorization 
Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘September 30, 
2015’’ and inserting ‘‘September 30, 2016’’; and 
(2) in paragraph (2), by striking ‘‘September 30, 
2018’’ and inserting ‘‘September 30, 2019’’. 
SEC. 878. IMPROVED AUDITING OF CONTRACTS. 
(a) ADDRESSING AUDIT BACKLOG.— 
(1) IN GENERAL.—Beginning October 1, 2016, 
the Defense Contract Audit Agency may provide audit 
support for non-Defense Agencies once the Secretary 
of Defense certifies that the backlog for incurred cost 
audits is less than 12 months of incurred cost inven-
tory. 
(2) ADJUSTMENT IN FUNDING FOR REIMBURSE-
MENTS FROM NON-DEFENSE AGENCIES.—The amount 
appropriated and otherwise available to the Defense 
Contract Audit Agency for a fiscal year beginning 
after September 30, 2016, shall be reduced by an 
amount equivalent to any reimbursements received by 
the Agency from non-Defense Agencies for support 
provided in violation of the limitation under para-
graph (1).
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† HR 1735 PAP1S 
(b) USE OF THIRD PARTY AUDITS.—The Secretary of 
Defense shall use up to 5 percent of the auditing staff of 
the service audit agencies augmented by private sector audi-
tors to help eliminate the audit backlog in incurred cost, 
pre-award accounting systems audits and to reduce the time 
to complete pre-award audits. 
(c) USE OF INSPECTOR GENERAL AUDITING STAFF.— 
The Office of the Inspector General of the Department of 
Defense shall make available 5 percent of its auditing staff 
to the Defense Contract Audit Agency to help eliminate the 
audit backlog in incurred cost, pre-award accounting sys-
tems audits and to reduce the time to complete pre-award 
audits. 
(d) DEFENSE CONTRACT AUDIT AGENCY ANNUAL RE-
PORT.—Section 2313a(a) of title 10, United States Code, 
is amended— 
(1) in paragraph (2), by amending subpara-
graph (D) to read as follows: 
‘‘(D) the total costs of sustained or recovered 
costs both as a total number and as a percentage 
of questioned costs; and’’; 
(2) in paragraph (3), by striking ‘‘; and’’ and 
inserting a semicolon; 
(3) by redesignating paragraph (4) as para-
graph (6); and
458 
† HR 1735 PAP1S 
(4) by inserting after paragraph (3) the fol-
lowing new paragraphs: 
‘‘(4) a description of actions taken to ensure 
alignment of policies and practices across the Defense 
Contract Audit Agency regional organizations, offices, 
and individual auditors; 
‘‘(5) a description of outreach actions toward in-
dustry to promote more effective use of audit re-
sources; and’’. 
(e) ACQUISITION OVERSIGHT AND AUDITS.—The Sec-
retary of Defense shall review the oversight and audit struc-
ture of the Department of Defense with the goal of enhanc-
ing the productivity of oversight and program and contract 
auditing to avoid duplicative audits and the streamlining 
of oversight reviews. The Secretary shall take all necessary 
measures to streamline oversight reviews and avoid duplica-
tive audits and make recommendation for any necessary 
changes in law. 
(f) REPORT.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense com-
mittees a report on actions taken to avoid duplicative 
audits and streamline oversight reviews.
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† HR 1735 PAP1S 
(2) ELEMENTS.—The report required under 
paragraph (1) shall include the following elements: 
(A) A description of actions taken to avoid 
duplicative audits and streamline oversight re-
views based on the review conducted under sub-
section (e). 
(B) A comparison of commercial industry 
accounting practices, including requirements 
under the Sarbanes-Oxley Act of 2002 (Public 
Law 107–204), with the Cost Accounting Stand-
ards (CAS) to determine if some portions of CAS 
compliance can be met through such practices or 
requirements. 
(C) A description of standards of materi-
ality used by the Defense Contract Audit Agency 
and the Inspector General of the Department of 
Defense for defense contract audits. 
(D) An estimate of average delay and range 
of delays in contract awards due to time nec-
essary for the Defense Contract Audit Agency to 
complete pre-award audits. 
(g) INCURRED COST INVENTORY DEFINED.—In this 
section, the term ‘‘incurred cost inventory’’ means the level 
of contractor incurred cost proposals in inventory from
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† HR 1735 PAP1S 
prior fiscal years that are currently being audited by the 
Defense Contract Audit Agency. 
SEC. 879. SURVEY ON THE COSTS OF REGULATORY COMPLI-
ANCE. 
(a) SURVEY.—The Secretary of Defense shall conduct 
a survey of the top ten contractors with the highest level 
of reimbursements for cost type contracts with the Depart-
ment of Defense during fiscal year 2014 to estimate indus-
try’s cost of regulatory compliance (as a percentage of total 
costs) with government unique acquisition regulations and 
requirements in the categories of quality assurance, ac-
counting and financial management, contracting and pur-
chasing, program management, engineering, logistics, mate-
rial management, property administration, and other 
unique requirements not imposed on contracts for commer-
cial items. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on 
the findings of the survey conducted under subsection (a). 
The data received as a result of the survey and included 
in the report shall be aggregated to protect against the pub-
lic release of proprietary information.
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† HR 1735 PAP1S 
SEC. 880. GOVERNMENT ACCOUNTABILITY OFFICE REPORT 
ON BID PROTESTS. 
(a) REPORT REQUIRED.—Not later than 270 days 
after the date of the enactment of this Act, the Comptroller 
General of the United States shall submit to the congres-
sional defense committees a report on the prevalence and 
impact of bid protests on Department of Defense acquisi-
tions over the previous 10 years, including both protests to 
the Government Accountability Office and protests filed in 
Federal court. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include, at a minimum, the following elements: 
(1) A description of trends in the number of bid 
protests filed, and the rate of such bid protests com-
pared to the number of procurements. 
(2) A description of comparative rates for bid 
protests filed by incumbent contractors and bid pro-
tests filed by non-incumbent contractors. 
(3) An assessment of the cost and schedule im-
pact of successful and unsuccessful bid protests filed 
by incumbent contractors on contracts for services 
with a value in excess of $100,000,000. 
(4) A description of trends in the number of bid 
protests filed and the rate of such bid protests on con-
tracts for the procurement of major defense acquisi-
tion programs.
462 
† HR 1735 PAP1S 
(5) An assessment of the cost and schedule im-
pact of successful and unsuccessful bid protests filed 
on contracts for the procurement of major defense ac-
quisition programs. 
(6) A description of any views the Comptroller 
General may have on the likely impact of a provision 
requiring a losing protester on a contract for the pro-
curement of a major defense acquisition program to 
pay the legal fees of the government. 
SEC. 881. STEPS TO IDENTIFY AND ADDRESS POTENTIAL 
UNFAIR COMPETITIVE ADVANTAGE OF TECH-
NICAL 
ADVISORS 
TO 
ACQUISITION 
OFFI-
CIALS. 
(a) GUIDANCE REQUIRED.—Not later than 120 days 
after the date of the enactment of this Act, the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics 
shall issue guidance on steps that should be taken to identify 
and evaluate, and to avoid, neutralize, or mitigate, any po-
tentially unfair competitive advantage of entities providing 
technical advice to acquisition officials in the award of re-
search and development work by such officials. 
(b) DEFINITIONS.—For the purposes of this section— 
(1) the term ‘‘potentially unfair competitive ad-
vantage’’ means unequal access to acquisition officials 
responsible for award decisions or allocation of re-
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† HR 1735 PAP1S 
sources or to acquisition information relevant to 
award decisions or allocation of resources; and 
(2) the term ‘‘entity providing technical advice 
to acquisition officials’’ means a contractor, Feder-
ally-funded research and development center and 
other non-profit entity, or Federal laboratory that 
provides systems engineering and technical direction, 
participates in technical evaluations, helps prepare 
specifications or work statements, or otherwise pro-
vides technical advice to acquisition officials on the 
conduct of defense acquisition programs. 
SEC. 882. HUBZONE QUALIFIED DISASTER AREAS. 
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 
631 et seq.)) is amended— 
(1) in section 3(p) (15 U.S.C. 632(p))— 
(A) in paragraph (1)— 
(i) in subparagraph (D), by striking 
‘‘or’’; 
(ii) in subparagraph (E), by striking 
the period at the end and inserting ‘‘; or’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(F) qualified disaster areas.’’; and
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† HR 1735 PAP1S 
(B) in paragraph (4), by adding at the end 
the following: 
‘‘(E) QUALIFIED DISASTER AREA.— 
‘‘(i) IN GENERAL.—The term ‘qualified 
disaster area’ means any census tract or 
nonmetropolitan county located in an area 
for which the President has declared a 
major disaster under section 401 of the Rob-
ert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5170) or 
located in an area in which a catastrophic 
incident has occurred, if— 
‘‘(I) in the case of a census tract, 
the census tract ceased to be a qualified 
census tract during the period begin-
ning 5 years before and ending 2 years 
after the date on which— 
‘‘(aa) the President declared 
the major disaster; or 
‘‘(bb) the catastrophic inci-
dent occurred; or 
‘‘(II) in the case of a nonmetro-
politan county, the nonmetropolitan 
county ceased to be a qualified non-
metropolitan county during the period
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† HR 1735 PAP1S 
beginning 5 years before and ending 2 
years after the date on which— 
‘‘(aa) the President declared 
the major disaster; or 
‘‘(bb) the catastrophic inci-
dent occurred. 
‘‘(ii) TREATMENT.—A qualified dis-
aster area shall only be treated as a 
HUBZone— 
‘‘(I) in the case of a major dis-
aster declared by the President, during 
the 5-year period beginning on the date 
on which the President declared the 
major disaster for the area in which 
the census tract or nonmetropolitan 
county, as applicable, is located; and 
‘‘(II) in the case of a catastrophic 
incident, during the 10-year period be-
ginning on the date on which the cata-
strophic incident occurred in the area 
in which the census tract or nonmetro-
politan county, as applicable, is lo-
cated.’’; and 
(2) in section 31(c)(3) (15 U.S.C. 657a(c)(3)), by 
inserting ‘‘the Administrator of the Federal Emer-
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† HR 1735 PAP1S 
gency Management Agency,’’ after ‘‘the Secretary of 
Labor,’’. 
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply to a major disaster declared by the 
President under section 401 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C. 
5170) or a catastrophic incident that occurs on or after the 
date of enactment of this Act. 
SEC. 883. BASE CLOSURE HUBZONES. 
(a) IN GENERAL.—Section 3(p)(5)(A)(i)(I) of the 
Small Business Act (15 U.S.C. 632(p)(5)(A)(i)(I)) is 
amended— 
(1) in item (aa), by striking ‘‘or’’ at the end; 
(2) by redesignating item (bb) as item (cc); and 
(3) by inserting after item (aa) the following: 
‘‘(bb) pursuant to subpara-
graph (A), (B), (C), (D), or (E) of 
paragraph (3), that its principal 
office is located in a HUBZone 
described in paragraph (1)(E) 
(relating to base closure areas) (in 
this item referred to as the ‘base 
closure HUBZone’), and that not 
fewer than 35 percent of its em-
ployees reside in—
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† HR 1735 PAP1S 
‘‘(AA) a HUBZone; 
‘‘(BB) the census tract 
in which the base closure 
HUBZone is wholly con-
tained; 
‘‘(CC) a census tract the 
boundaries of which intersect 
the boundaries of the base 
closure HUBZone; or 
‘‘(DD) a census tract 
the boundaries of which are 
contiguous to a census tract 
described in subitem (BB) or 
(CC); or’’. 
(b) PERIOD FOR BASE CLOSURE AREAS.— 
(1) AMENDMENTS.— 
(A) IN GENERAL.—Section 152(a)(2) of title 
I of division K of the Consolidated Appropria-
tions Act, 2005 (15 U.S.C. 632 note) is amended 
by striking ‘‘5 years’’ and inserting ‘‘8 years’’. 
(B) 
CONFORMING
AMENDMENT.—Section 
1698(b)(2) of National Defense Authorization Act 
for Fiscal Year 2013 (15 U.S.C. 632 note) is 
amended by striking ‘‘5 years’’ and inserting ‘‘8 
years’’.
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† HR 1735 PAP1S 
(2) 
EFFECTIVE
DATE; 
APPLICABILITY.—The 
amendments made by paragraph (1) shall— 
(A) take effect on the date of enactment of 
this Act; and 
(B) apply to— 
(i) a base closure area (as defined in 
section 3(p)(4)(D) of the Small Business 
Act (15 U.S.C. 632(p)(4)(D))) that, on the 
day before the date of enactment of this Act, 
is treated as a HUBZone described in sec-
tion 3(p)(1)(E) of the Small Business Act 
(15 U.S.C. 632(p)(1)(E)) under— 
(I) section 152(a)(2) of title I of 
division K of the Consolidated Appro-
priations Act, 2005 (15 U.S.C. 632 
note); or 
(II) section 1698(b)(2) of National 
Defense Authorization Act for Fiscal 
Year 2013 (15 U.S.C. 632 note); and 
(ii) a base closure area relating to the 
closure of a military instillation under the 
authority described in clauses (i) through 
(iv) of section 3(p)(4)(D) of the Small Busi-
ness Act (15 U.S.C. 632(p)(4)(D)) that oc-
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† HR 1735 PAP1S 
curs on or after the date of enactment of 
this Act. 
SEC. 884. EXCEPTION FOR ABILITYONE GOODS FROM AU-
THORITY TO ACQUIRE GOODS AND SERVICES 
MANUFACTURED IN AFGHANISTAN, AND CEN-
TRAL ASIAN STATES. 
(a) EXCLUSION OF CERTAIN ITEMS NOT MANUFAC-
TURED IN AFGHANISTAN.—Section 886 of the National De-
fense Authorization Act for Fiscal Year 2008 (10 U.S.C. 
2302 note) is amended— 
(1) in subsection (a), by inserting ‘‘and except as 
provided in subsection (d),’’ after ‘‘subsection (b),’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) EXCLUSION OF ITEMS ON THE ABILITYONE PRO-
CUREMENT CATALOG.—The authority under subsection (a) 
shall not be available for the procurement of any good that 
is contained in the procurement catalog described in section 
8503(a) of title 41 in Afghanistan if such good can be pro-
duced and delivered by a qualified non-profit agency for 
the blind or a non-profit agency for other severely disabled 
in a timely fashion to support mission requirements.’’. 
(b) EXCLUSION OF CERTAIN ITEMS NOT MANUFAC-
TURED IN CENTRAL ASIAN STATES.—Section 801 of the
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† HR 1735 PAP1S 
National Defense Authorization Act for Fiscal Year 2010 
(Public Law 111–84; 123 Stat. 2399) is amended— 
(1) in subsection (a), by inserting ‘‘and except as 
provided in subsection (h),’’ after ‘‘subsection (b),’’; 
and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) EXCLUSION OF ITEMS ON THE ABILITYONE PRO-
CUREMENT CATALOG.—The authority under subsection (a) 
shall not be available for the procurement of any good that 
is contained in the procurement catalog described in section 
8503(a) of title 41 if such good can be produced and deliv-
ered by a qualified non-profit agency for the blind or a non- 
profit agency for other severely disabled in a timely fashion 
to support mission requirements.’’. 
SEC. 885. SMALL BUSINESS PROCUREMENT OMBUDSMAN. 
(a) IN GENERAL.—The small business offices in the Of-
fice of the Secretary of Defense and the military depart-
ments shall serve as intermediaries between small businesses 
and contracting officials prior to the award of contracts in 
cases where a small business prospective contractor notifies 
the small business office that it has reason to believe that 
the contracting process has been modified to preclude a 
small business from bidding on the contract or would give 
another contractor an unfair competitive advantage.
471 
† HR 1735 PAP1S 
(b) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to preclude a contractor from exercising 
the right to initiate a bid protest under a contract. 
SEC. 886. ANNUAL REPORT ON FOREIGN PROCUREMENTS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2338. Reporting on foreign purchases 
‘‘(a) IN GENERAL.—Not later than 60 days after the 
end of fiscal year 2016, and each fiscal year thereafter, the 
Secretary of Defense shall submit to the appropriate con-
gressional defense committees a report listing specific pro-
curements by the Department of Defense in that fiscal year 
of articles, materials, or supplies valued greater than 
$5,000,000, indexed to inflation, using the exception under 
section 8302(a)(2)(A) of title 41. This report may be sub-
mitted as part of the report required under section 8305 
of such title. 
‘‘(b) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘appropriate congres-
sional committees’ means the congressional defense commit-
tees, the Committee on Homeland Security and Govern-
mental Affairs of the Senate, and the Committee on Over-
sight and Government Reform of the House of Representa-
tives.’’.
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† HR 1735 PAP1S 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 137 of title 10, United States Code, 
is amended by inserting after the item relating to section 
2337 the following new item: 
‘‘2338. Reporting on foreign purchases.’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
SEC. 901. UPDATE OF STATUTORY SPECIFICATION OF FUNC-
TIONS OF CHAIRMAN OF THE JOINT CHIEFS 
OF STAFF RELATING TO ADVICE ON REQUIRE-
MENTS, PROGRAMS, AND BUDGET. 
Section 153(a)(4) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(H) Advising the Secretary on development of 
joint command, control, communications, and cyber 
capabilities, including integration and interoper-
ability of such capabilities, through requirements, in-
tegrated architectures, data standards, and assess-
ments.’’. 
SEC. 902. REORGANIZATION AND REDESIGNATION OF OF-
FICE OF FAMILY POLICY AND OFFICE OF COM-
MUNITY SUPPORT FOR MILITARY FAMILIES 
WITH SPECIAL NEEDS. 
(a) OFFICE OF FAMILY POLICY.—
473 
† HR 1735 PAP1S 
(1) REDESIGNATION
AS
OFFICE
OF
MILITARY 
FAMILY READINESS POLICY.—Section 1781(a) of title 
10, United States Code, is amended— 
(A) by striking ‘‘Office of Family Policy’’ 
and inserting ‘‘Office of Military Family Readi-
ness Policy’’; and 
(B) by striking ‘‘Director of Family Policy’’ 
and inserting ‘‘Director of Military Family 
Readiness Policy’’. 
(2) REQUIREMENT FOR DIRECTOR TO BE MEM-
BER OF SENIOR EXECUTIVE SERVICE OR GENERAL OR 
FLAG OFFICER.—Such section is further amended by 
adding at the end the following new sentence: ‘‘The 
Director shall be a member of the Senior Executive 
Service or a general officer or flag officer.’’. 
(3) INCLUSION OF DIRECTOR ON MILITARY FAM-
ILY
READINESS
COUNCIL.—Subsection (b)(1)(E) of 
section 1781a of such title is amended by striking 
‘‘Office of Community Support for Military Families 
with Special Needs’’ and inserting ‘‘Office of Military 
Family Readiness Policy’’. 
(4) 
CONFORMING
AMENDMENT.—Section 
131(b)(7)(F) of such title is amended by striking ‘‘Di-
rector of Family Policy’’ and inserting ‘‘Director of 
Military Family Readiness Policy’’.
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† HR 1735 PAP1S 
(5) HEADING AND CLERICAL AMENDMENTS.— 
(A) SECTION
HEADING.—The heading of 
section 1781 of such title is amended to read as 
follows: 
‘‘§ 1781. Office of Military Family Readiness Policy’’. 
(B) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 88 of such 
title is amended by striking the item relating to 
section 1781 and inserting the following new 
item: 
‘‘1781. Office of Military Family Readiness Policy.’’. 
(b) OFFICE OF COMMUNITY SUPPORT FOR MILITARY 
FAMILIES WITH SPECIAL NEEDS.— 
(1) REDESIGNATION
AS
OFFICE
OF
SPECIAL 
NEEDS.—Subsection (a) of section 1781c of title 10, 
United States Code, is amended by striking ‘‘Office of 
Community Support for Military Families with Spe-
cial Needs’’ and inserting ‘‘Office of Special Needs’’. 
(2) REORGANIZATION UNDER OFFICE OF MILI-
TARY FAMILY READINESS POLICY.—Such subsection is 
further amended by striking ‘‘Office of the Under Sec-
retary of Defense for Personnel and Readiness’’ and 
inserting ‘‘Office of Military Family Readiness Pol-
icy’’. 
(3) REPEAL OF REQUIREMENT FOR HEAD OF OF-
FICE TO BE MEMBER OF SENIOR EXECUTIVE SERVICE
475 
† HR 1735 PAP1S 
OR GENERAL OR FLAG OFFICER.—Such section is fur-
ther amended by striking subsection (c). 
(4) CONFORMING AMENDMENTS.—Such section is 
further amended— 
(A) by redesignating subsections (d) through 
(i) as subsections (c) through (h), respectively; 
(B) by striking ‘‘subsection (e)’’ each place 
it appears and inserting ‘‘subsection (d)’’; 
(C) in subsection (c), as so redesignated, by 
striking ‘‘subsection (f)’’ in paragraph (2) and 
inserting ‘‘subsection (e)’’; and 
(D) in subsection (g), as so redesignated, by 
striking ‘‘subsection (d)(4)’’ in paragraph (2)(B) 
and inserting ‘‘subsection (c)(4)’’. 
(5) HEADING AND CLERICAL AMENDMENTS.— 
(A) SECTION
HEADING.—The heading of 
such section is amended to read as follows: 
‘‘§ 1781c. Office of Special Needs’’. 
(B) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 88 of such 
title is amended by striking the item relating to 
section 1781c and inserting the following new 
item: 
‘‘1781c. Office of Special Needs.’’.
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† HR 1735 PAP1S 
SEC. 903. REPEAL OF REQUIREMENT FOR ANNUAL DEPART-
MENT OF DEFENSE FUNDING FOR OCEAN RE-
SEARCH ADVISORY PANEL. 
Section 7903 of title 10, United States Code, is amend-
ed by striking subsection (c). 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2016 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that the 
Secretary may transfer under the authority of this 
section may not exceed $4,500,000,000. 
(3) EXCEPTION FOR TRANSFERS BETWEEN MILI-
TARY
PERSONNEL
AUTHORIZATIONS.—A transfer of 
funds between military personnel authorizations
477 
† HR 1735 PAP1S 
under title IV shall not be counted toward the dollar 
limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items from 
which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
SEC. 1002. ANNUAL AUDIT OF FINANCIAL STATEMENTS OF 
DEPARTMENT OF DEFENSE COMPONENTS BY 
INDEPENDENT EXTERNAL AUDITORS. 
(a) AUDITS REQUIRED.—For purposes of satisfying 
the requirement under section 3521(e) of title 31, United 
States Code, for audits of financial statements of Depart-
ment of Defense components identified by the Director of 
the Office of Management and Budget under section 3515(c)
478 
† HR 1735 PAP1S 
of such title, the Inspector General of the Department of 
Defense shall obtain each year audits of the financial state-
ments of each such component by an independent external 
auditor. 
(b) INSPECTOR GENERAL SELECTION
AND OVER-
SIGHT.—The Inspector General shall— 
(1) select independent external auditors for pur-
poses of subsection (a) based, among other appro-
priate criteria, on their qualifications, independence, 
and capacity to conduct audits described in sub-
section (a) in accordance with applicable generally 
accepted government auditing standards; and 
(2) shall monitor the conduct of such audits. 
(c) REPORTS ON AUDITS.— 
(1) IN GENERAL.—The Inspector General shall 
require the independent external auditors conducting 
audits under subsection (a) to submit a report on 
their audits each year to the Secretary of Defense, the 
Controller of the Office of Federal Financial Manage-
ment in the Office of Management and Budget, and 
the appropriate committees of Congress. 
(2) APPROPRIATE
COMMITTEES
OF
CONGRESS 
DEFINED.—In this subsection, the term ‘‘appropriate 
committees of Congress’’ means—
479 
† HR 1735 PAP1S 
(A) the Committee on Armed Services, the 
Committee on Homeland Security and Govern-
mental Affairs, and the Committee on Appro-
priations of the Senate; and 
(B) the Committee on Armed Services, the 
Committee on Oversight and Government Re-
form, and the Committee on Appropriations of 
the House of Representatives. 
(d) RELATIONSHIP TO EXISTING LAW.—The require-
ments of this section— 
(1) shall be implemented in a manner that is 
consistent with the requirements of section 1008 of the 
National Defense Authorization Act for Fiscal Year 
2002 (10 U.S.C. 2222 note); 
(2) shall not be construed to alter the require-
ment under section 3521(e) of title 31, United States 
Code, that the financial statements of the Department 
of Defense as a whole be audited by the Inspector 
General or by an independent external auditor, as de-
termined by the Inspector General; and 
(3) shall not be construed to limit or alter the 
authorities of the Comptroller General of the United 
States under section 3521(g) of title 31, United States 
Code.
480 
† HR 1735 PAP1S 
SEC. 1003. TREATMENT AS PART OF THE BASE BUDGET OF 
CERTAIN AMOUNTS AUTHORIZED FOR OVER-
SEAS CONTINGENCY OPERATIONS UPON EN-
ACTMENT OF AN ACT REVISING THE BUDGET 
CONTROL ACT DISCRETIONARY SPENDING 
LIMITS FOR FISCAL YEAR 2016. 
(a) IN GENERAL.—In the event of the enactment of an 
Act revising in proportionally equal amounts the defense 
and non-defense discretionary spending limits for fiscal 
year 2016, the amount authorized to be appropriated by 
title XV that is in excess of the $50,900,000,000 that is au-
thorized to be appropriated by that title for revised security 
category activities, and is also not greater than the amount 
of the increase in the discretionary spending limit for re-
vised security category activities revised by that Act, shall 
be deemed to have been authorized to be appropriated by 
title III. 
(b) DEFINITIONS.—In this section: 
(1) The term ‘‘Act revising the defense and non- 
defense discretionary spending limits for fiscal year 
2016’’ means an Act— 
(A) enacted after the date of enactment of 
this Act; and 
(B) that— 
(i) increases in proportionally equal 
amounts the discretionary spending limits
481 
† HR 1735 PAP1S 
for fiscal year 2016 for the revised security 
category and the revised nonsecurity cat-
egory; and 
(ii) may include increases to the dis-
cretionary spending limits for fiscal years 
2017 through 2021. 
(2) The terms ‘‘discretionary spending limit’’, 
‘‘revised nonsecurity category’’, and ‘‘revised security 
category’’ have the meanings given such terms in sec-
tion 250 of the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 900). 
SEC. 1004. SENSE OF SENATE ON SEQUESTRATION. 
It is the sense of the Senate that— 
(1) the nation’s fiscal challenges are a top pri-
ority for Congress, and sequestration—non-strategic, 
across-the-board budget cuts—remains an unreason-
able and inadequate budgeting tool to address the na-
tion’s deficits and debt; 
(2) sequestration relief must be accomplished for 
fiscal years 2016 and 2017; 
(3) sequestration relief should include equal de-
fense and non-defense relief; and 
(4) sequestration relief should be offset through 
targeted changes in mandatory and discretionary cat-
egories and revenues.
482 
† HR 1735 PAP1S 
SEC. 1005. SENSE OF SENATE ON FINDING EFFICIENCIES 
WITHIN THE WORKING CAPITAL FUND ACTIVI-
TIES OF THE DEPARTMENT OF DEFENSE. 
It is the sense of the Senate that the Secretary of De-
fense should, through the military departments, continue to 
find efficiencies within the working capital fund activities 
of the Department of Defense with specific emphasis on op-
timizing the existing workload plans of such activities to 
ensure a strong organic industrial base workforce. 
Subtitle B—Counter-Drug Activities 
SEC. 1011. EXTENSION OF AUTHORITY TO SUPPORT UNI-
FIED 
COUNTERDRUG 
AND 
COUNTERTER-
RORISM CAMPAIGN IN COLOMBIA. 
(a) EXTENSION OF AUTHORITY.—Section 1021 of the 
Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108–375; 118 Stat. 2042), 
as most recently amended by section 1011(a) of the Carl 
Levin and Howard P. ‘‘Buck’’ McKeon National Defense 
Authorization Act for Fiscal Year 2015 (Public Law 113– 
291), is further amended— 
(1) In subsection (a), by striking ‘‘2016’’ and in-
serting ‘‘2017’’; and 
(2) In subsection (c), by striking ‘‘2016’’ and in-
serting ‘‘2017’’. 
(b) EXTENSION OF ANNUAL NOTICE TO CONGRESS ON 
ASSISTANCE.—Section 1011(b) of the Carl Levin and How-
483 
† HR 1735 PAP1S 
ard P. ‘‘Buck’’ McKeon National Defense Authorization Act 
for Fiscal Year 2015 is amended by striking ‘‘(as amended 
by subsection (a)) using funds available for fiscal year 
2015’’ and inserting ‘‘using funds available for any fiscal 
year’’. 
SEC. 1012. EXTENSION AND EXPANSION OF AUTHORITY TO 
PROVIDE 
ADDITIONAL 
SUPPORT 
FOR 
COUNTER-DRUG 
ACTIVITIES 
OF 
CERTAIN 
FOREIGN GOVERNMENTS. 
(a) EXTENSION.—Subsection (a)(2) of section 1033 of 
the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105–85; 111 Stat. 1881), as most recently 
amended by section 1013 of the National Defense Authoriza-
tion Act for Fiscal Year 2014 (Public Law 113–66; 127 
Stat. 844), is further amended by striking ‘‘2016’’ and in-
serting ‘‘2017’’. 
(b) MAXIMUM
AMOUNT
OF
SUPPORT.—Subsection 
(e)(2) of such section 1033, as so amended, is further 
amended by striking ‘‘2016’’ and inserting ‘‘2017’’. 
(c) ADDITIONAL GOVERNMENTS ELIGIBLE TO RE-
CEIVE SUPPORT.—Subsection (b) of such section 1033, as 
so amended, is further amended by adding at the end of 
the following new paragraphs: 
‘‘(40) Government of Kenya. 
‘‘(41) Government of Tanzania.
484 
† HR 1735 PAP1S 
‘‘(42) Government of Somalia.’’. 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. STUDIES OF FLEET PLATFORM ARCHITECTURES 
FOR THE NAVY. 
(a) INDEPENDENT STUDIES.— 
(1) IN GENERAL.—The Secretary of Defense shall 
provide for the performance of three independent stud-
ies of alternative future fleet platform architectures 
for the Navy in the 2030 timeframe. 
(2) SUBMISSION TO CONGRESS.—Not later than 
May 1, 2016, the Secretary shall forward the results 
of each study to the congressional defense committees. 
(3) FORM.—Each such study shall be submitted 
in unclassified form, but may contain a classified 
annex as necessary. 
(b) ENTITIES TO PERFORM STUDIES.—The Secretary 
of Defense shall provide for the studies under subsection (a) 
to be performed as follows: 
(1) One study shall be performed by the Depart-
ment of the Navy and shall include participants 
from— 
(A) the Office of Net Assessment within the 
Office of the Secretary of Defense; and
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† HR 1735 PAP1S 
(B) the Naval Surface Warfare Center 
Dahlgren Division. 
(2) The second study shall be performed by a fed-
erally funded research and development center. 
(3) The final study shall be conducted by an 
independent, non-governmental institute which is de-
scribed in section 501(c)(3) of the Internal Revenue 
Code of 1986, and exempt from tax under section 
501(a) of such Code, and has recognized credentials 
and expertise in national security and military af-
fairs. 
(c) PERFORMANCE OF STUDIES.— 
(1) INDEPENDENT
PERFORMANCE.—The Sec-
retary of Defense shall require the three studies under 
this section to be conducted independently of each 
other. 
(2) MATTERS
TO
BE
CONSIDERED.—In per-
forming a study under this section, the organization 
performing the study, while being aware of the cur-
rent and projected fleet platform architectures, shall 
not be limited by the current or projected fleet plat-
form architecture and shall consider the following 
matters: 
(A) The National Security Strategy of the 
United States.
486 
† HR 1735 PAP1S 
(B) Potential future threats to the United 
States and to United States naval forces in the 
2030 timeframe. 
(C) Traditional roles and missions of 
United States naval forces. 
(D) Alternative roles and missions for 
United States naval forces. 
(E) Other government and non-government 
analyses that would contribute to the study 
through variations in study assumptions or po-
tential scenarios. 
(F) The role of evolving technology on fu-
ture naval forces, including unmanned systems. 
(G) Opportunities for reduced personnel 
and sustainment costs. 
(H) Current and projected capabilities of 
other United States military services that could 
affect force structure capability and capacity re-
quirements of United States naval forces. 
(d) STUDY RESULTS.—The results of each study under 
this section shall— 
(1) present the alternative fleet platform archi-
tectures considered, with assumptions and possible 
scenarios identified for each;
498 
† HR 1735 PAP1S 
(2) determines that appropriate actions have 
been taken, or will be taken, to address any risk to 
public safety that could arise in connection with de-
tention and trial in the United States; and 
(3) notifies the appropriate committees of Con-
gress not later than 30 days before the date of the pro-
posed transfer. 
(c) NOTIFICATION ELEMENTS.—A notification on a 
transfer under subsection (b)(3) shall include the following: 
(1) A statement of the basis for the determina-
tion that the transfer is in the national security in-
terest of the United States. 
(2) A description of the action the Secretary de-
termines have been taken, or will be taken, to address 
any risk to the public safety that could arise in con-
nection with the detention and trial in the United 
States. 
(d) STATUS WHILE IN THE UNITED STATES.—A de-
tainee who is transferred to the United States under this 
section— 
(1) shall not be permitted to apply for asylum 
under section 208 of the Immigration and Nation-
ality Act (8 U.S.C. 1158) or be eligible to apply for 
admission into the United States;
506 
† HR 1735 PAP1S 
business, and the resolution shall remain the unfin-
ished business of the respective House until disposed 
of. 
(B) Debate on the resolution, and on all debat-
able motions and appeals in connection therewith, 
shall be limited to not more than 2 hours, which shall 
be divided equally between those favoring and those 
opposing the resolution. An amendment to the resolu-
tion is not in order. A motion further to limit debate 
is in order and not debatable. A motion to postpone, 
or a motion to proceed to the consideration of other 
business, or a motion to recommit the resolution is 
not in order. A motion to reconsider the vote by which 
the resolution is agreed to or disagreed to is not in 
order. 
(C) Immediately following the conclusion of the 
debate on a resolution described in paragraph (1) and 
a single quorum call at the conclusion of the debate 
if requested in accordance with the rules of the appro-
priate House, the vote on final passage of the resolu-
tion shall occur. 
(D) Appeals from the decisions of the Chair re-
lating to the application of the rules of the Senate or 
the House of Representatives, as the case may be, to
564 
† HR 1735 PAP1S 
(2) UPDATES
OF
INCREASES
IN
NUMBER
OF 
UNITS OF JROTC.—Section 548 of the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 
2009 (122 Stat. 4466) is amended by striking sub-
section (e). 
(3) ANNUAL REPORTS ON CENTER OF EXCEL-
LENCE ON TRAUMATIC EXTREMITY INJURIES AND AM-
PUTATIONS.—Section 723 of the Duncan Hunter Na-
tional Defense Authorization Act for Fiscal Year 2009 
(122 Stat. 4508) is amended by striking (d). 
(4) SEMI-ANNUAL REPORT ON STATUS OF NAVY 
NEXT
GENERATION
ENTERPRISE
NETWORKS
PRO-
GRAM.—Section 1034 of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 (122 
Stat. 4593) is hereby repealed. 
(h) REPORTS UNDER PUBLIC LAW 110–181.— 
(1) BIENNIAL UPDATE OF STRATEGIC MANAGE-
MENT PLAN.—Section 904(d) of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 
110–181; 122 Stat. 275) is amended by striking para-
graph (3). 
(2) REPORTS
ON
ACCESS
OF
RECOVERING 
SERVICEMEMBERS TO ADEQUATE OUTPATIENT RESI-
DENTIAL FACILITIES.—Section 1662 of the Wounded