1372 
nancing, a lack of end-user agreements, and speed 
of sale and delivery; and 
(9) the strategy of the People’s Republic of 
China regarding arms sales and variables that could 
influence such strategy. 
(c) FORM.— 
(1) IN GENERAL.—The report required by sub-
section (a) shall be submitted in unclassified form, 
but shall include a classified annex. 
(2) CLASSIFIED ANNEX.—The classified annex 
required by paragraph (1) shall contain— 
(A) an assessment by the National Intel-
ligence Council of the contents required by sub-
section (b); and 
(B) an assessment by the Director of Na-
tional Intelligence of the counterintelligence 
risks and risks of onward proliferation of tech-
nology and defense systems originating in the 
United States and created through the pur-
chase, deployment, and use of weapons systems 
and defense equipment originating from the 
People’s Republic of China by United States al-
lies and partners.
1373 
(d) APPROPRIATE
CONGRESSIONAL
COMMITTEES 
DEFINED.—In this section, the term ‘‘appropriate con-
gressional committees’’ means— 
(1) the Committee on Armed Services, the 
Committee on Foreign Relations, and the Select 
Committee on Intelligence of the Senate; and 
(2) the Committee on Armed Services, the 
Committee on Foreign Affairs, and the Permanent 
Select Committee on Intelligence of the House of 
Representatives. 
SEC. 1735. STRATEGY TO COMBAT ARMS SALES OF THE 
PEOPLE’S REPUBLIC OF CHINA. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary of State, 
in coordination with the Secretary of Defense, shall de-
velop a strategy to dissuade purchases of new weapons 
systems and defense equipment, excluding spare parts or 
parts for maintenance of previously procured weapons, 
originating from the People’s Republic of China. 
(b) ELEMENTS.—The strategy shall include the fol-
lowing elements: 
(1) An information campaign targeting coun-
tries interested in procuring weapons systems and 
defense equipment originating from the People’s Re-
public of China to warn such countries about—
1374 
(A) potential risks, including the lack of a 
proven track record in combat, insufficient 
training on the operation of the weapon or 
weapons system, reliability issues, and the lack 
of maintenance and spare parts available; 
(B) the inability to integrate such weapons 
systems and defense equipment with weapons 
systems and defense equipment from the United 
States; and 
(C) the potential limitation of future secu-
rity cooperation with the United States that 
could arise if such weapons are acquired. 
(2) A description of actions the United States 
can take, including reforms to the foreign military 
sales, direct commercial sales, and foreign military 
financing processes, to make weapons systems and 
defense equipment from the United States more at-
tractive to prospective buyers of weapons systems or 
defense equipment originating from the People’s Re-
public of China. 
(3) A description of actions defense firms of the 
United States can take to provide competitive alter-
natives to prospective buyers of weapons systems 
and defense equipment originating from the People’s 
Republic of China.
1375 
(4) An analysis of whether the use of sanctions, 
export controls, or other economic restrictions tar-
geting buyers of new weapons systems or defense 
equipment originating from the People’s Republic of 
China could serve as an effective deterrent. 
(5) A plan to ensure sufficient representation of 
defense firms of the United States, or trusted allies, 
at defense expositions where defense firms of the 
People’s Republic of China are also attending. 
(6) A plan to combat Chinese disinformation 
campaigns targeting the performance of weapons or 
platforms produced by the United States or trusted 
allies. 
(7) A plan to ensure close coordination with 
Congress to prevent disjointed engagement with 
countries. 
(c) REPORT
AND IMPLEMENTATION PLAN.—Not 
later than the date on which the strategy required by sub-
section (a) is completed, the Secretary of State shall sub-
mit to the appropriate congressional committees a report 
detailing the strategy and a plan for implementation. 
(d) FORM.—The report required by subsection (c) 
shall be submitted in unclassified form, but may include 
a classified annex.
1376 
(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate; and 
(2) the Committee on Armed Services and the 
Committee on Foreign Affairs of the House of Rep-
resentatives. 
Subtitle D—SAFE Research Act 
SEC. 1736. SHORT TITLE. 
This subtitle may be cited as the ‘‘Securing American 
Funding and Expertise from Adversarial Research Exploi-
tation Act of 2025’’ or the ‘‘SAFE Research Act’’. 
SEC. 1737. PROHIBITION ON CERTAIN FEDERAL AWARDS. 
(a) GOVERNMENT-WIDE PROHIBITION.—Except as 
provided in subsection (c), no research agency may provide 
a covered award to support research and development ac-
tivities by a covered individual if the covered individual 
or the covered individual’s research collaborator(s) is af-
filiated with a hostile foreign entity— 
(1) as of the date of application for the award; 
or 
(2) at any time in the period of five years pre-
ceding the date of application for the award unless 
such affiliation was terminated on or before the date
1377 
that is 90 days after the date of enactment of this 
Act. 
(b) DOD-SPECIFIC PROHIBITION.—Except as pro-
vided in subsection (c), none of the funds authorized to 
be appropriated or otherwise made available for any fiscal 
year for the Department of Defense may be provided to 
an institution of higher education that maintains a covered 
partnership with a hostile foreign entity. 
(c) NATIONAL SECURITY WAIVER.— 
(1) IN
GENERAL.—The head of a research 
agency, or an official designated by such agency 
head at or above the level of an Assistant Secretary 
(or the equivalent), may waive the prohibitions 
under subsections (a) and (b) on a case-by-case 
basis if the head of the agency or the designated of-
ficial concerned determines that such waiver is in 
the national security interests of the United States. 
(2) CONGRESSIONAL NOTICE.—Not later than 
30 days after the date on which an award is made 
by a research agency with respect to which a waiver 
is made under paragraph (1), the head of the agency 
or the designated official concerned shall submit to 
Congress notice of such waiver and a written jus-
tification for such waiver.
1378 
SEC. 1738. DISCLOSURES. 
(a) IN GENERAL.—In any application for a covered 
award from a research agency, a covered individual shall 
disclose, with respect to the period of five years preceding 
the date of such application, the following with respect to 
the covered individual: 
(1) All covered research collaborators who are 
located in or have an affiliation with an institution 
located in a foreign adversary country. 
(2) Any funding, gift, property (including intel-
lectual property), resources, or award received from 
an individual or entity located in a foreign adversary 
country. 
(3) Any conference participation, professorship, 
talent program participation, or other academic, re-
search, or corporate affiliation with an entity located 
in a foreign adversary country. 
(4) Any travel to a foreign adversary country. 
(5) For each item disclosed under paragraphs 
(1) through (4)— 
(A) the foreign adversary country associ-
ated with that item, and any affiliated individ-
uals or entities; 
(B) the total value of any benefits received 
by the covered individual from such country, in-
1379 
dividuals, or entities whether monetary or non- 
monetary; and 
(C) details pertaining to the item disclosed, 
including— 
(i) the nature of the actions per-
formed or association entered into by the 
covered individual; 
(ii) any terms, conditions, and bene-
fits associated with such item; and 
(iii) such other relevant information 
as the head of the research agency deter-
mines appropriate. 
(6) An explanation of any instance in which the 
covered individual requested permission to share in-
formation with a hostile foreign entity or research 
collaborator affiliated with such an entity pursuant 
to section 1734(b), including a description of any in-
formation proposed to be shared and the results of 
such request. 
(b) USE
OF DISCLOSED INFORMATION.—The re-
search agency that receives disclosures under subsection 
(a)— 
(1) shall use the information disclosed to ensure 
compliance with the prohibitions under sections 
1732 and 1734; and
1380 
(2) may use such information to analyze poten-
tial research security, national security, or economic 
security risks and the assessment of such risks may 
be used as factor in determining the allocation of 
relevant grants, contracts, and other awards. 
(b) RELATIONSHIP
TO OTHER LAW.—The disclo-
sures required under subsection (a) are in addition to any 
disclosures that may otherwise be required under section 
223 of the William M. (Mac) Thornberry National De-
fense Authorization Act for Fiscal Year 2021 (42 U.S.C. 
6605). 
SEC. 1739. CONCURRENT AND POST-AWARD RESTRICTIONS. 
(a) CONCURRENT AWARD RESTRICTIONS.—As a con-
dition of receiving a covered award, a covered individual 
may not maintain an affiliation with a hostile foreign enti-
ty or a covered research collaborator affiliated with such 
an entity for the duration of the award period. 
(b) POST-AWARD RESTRICTIONS.—As a condition of 
receiving a covered award, during the five year period fol-
lowing the conclusion of the award period— 
(1) a covered individual may not share with a 
hostile foreign entity or a covered research collabo-
rator affiliated with such an entity any nonpublished 
results, expertise, or intellectual property arising 
from or related to the covered award unless—
1381 
(A) the covered individual submits to the 
research agency that made the award a request 
for permission to share such information with 
such an entity or collaborator; and 
(B) such request is approved, in writing, 
by the head of the research agency or an offi-
cial designated by such agency head at or above 
the level of an Assistant Secretary (or the 
equivalent); and 
(2) on an annual basis during such five year pe-
riod, the institution to which the covered award was 
made shall submit to the research agency that made 
the award an annual certification, signed by an au-
thorized official of the institution, attesting that nei-
ther the institution nor any covered individual has 
shared with a hostile foreign entity or a covered re-
search collaborator affiliated with such an entity any 
nonpublished results, expertise, or intellectual prop-
erty arising from or related to the award, except as 
expressly approved under paragraph (1)(B). 
SEC. 1740. DEFINITIONS. 
In this subtitle: 
(1) The term ‘‘affiliation’’ means any affili-
ation, partnership, agreement, other research or
1382 
teaching relationship (including guest or visiting 
professorships), or similar transaction. 
(2) The term ‘‘covered award’’ means support 
provided to a covered individual affiliated with an in-
stitution of higher education by a research agency to 
carry out research and development activities within 
any science, technology, engineering, or mathematics 
field, which may include support in the form of a 
grant, contract, cooperative agreement, or other 
such transaction. The term does not include— 
(A) a grant, contract, agreement or other 
transaction for the procurement of goods or 
services to meet the administrative needs of a 
research agency; or 
(B) an award made under the Small Busi-
ness Innovation Research Program or the Small 
Business Technology Transfer Program (as 
those terms are defined in section 9(e) of the 
Small Business Act (15 U.S.C. 638(e))). 
(3) The term ‘‘covered individual’’ has the 
meaning given that term in section 223(d) of the 
William M. (Mac) Thornberry National Defense Au-
thorization Act for Fiscal Year 2021 (42 U.S.C. 
6605), as interpreted in accordance with the guid-
ance of the National Science and Technology Coun-
1383 
cil titled ‘‘Guidance for Implementing National Se-
curity Presidential Memorandum 33 (NSPM–33) on 
National Security Strategy for United States Gov-
ernment-Supported Research and Development’’, 
dated January 2022, or any successor guidance. 
(4) The term ‘‘covered partnership’’ means an 
agreement between an institution of higher edu-
cation and a hostile foreign entity that involves— 
(A) the provision of educational services; 
(B) collaboration related to scientific or 
technical research; 
(C) any agreement related to the research, 
development, sale, licensing, or other arrange-
ment involving university-developed, owned, or 
controlled research, venture, intellectual prop-
erty (including any assignment or license of a 
granted patent, trademark, or copyright not 
listed in the Commerce Control List under Sup-
plement No. 1 to part 774 of title 15, Code of 
Federal Regulations), or other asset; 
(D) access to university assets, such as re-
search, data, models, software, or facilities; or 
(E) direct support or coordination by for-
eign adversary country-linked entities of stu-
dent groups, language or cultural centers, or
1384 
other on-campus entities (including Confucius 
Institutes and Chinese Student and Scholars 
Associations). 
(5) The term ‘‘covered research collaborator’’ 
means a person located in or affiliated with an enti-
ty located in or organized under the laws of a for-
eign adversary country with whom the covered indi-
vidual has, in the five years preceding the date of 
application for a covered award— 
(A) conducted joint research; 
(B) co-authored publications; 
(C) collaborated on grants or other 
awards; or 
(D) formally advised as a graduate student 
or post-doctoral fellow. 
(6) The term ‘‘foreign adversary country’’ 
means a covered nation as defined in section 4872(f) 
of title 10, United States Code, and includes any 
special administrative region or territory under the 
control of such a nation. 
(7) The term ‘‘hostile foreign entity’’ means an 
entity, or any subsidiary or affiliate of an entity that 
is located in or organized under the laws of a foreign 
adversary country, and that— 
(A) is included on—
1385 
(i) the Non-SDN Chinese Military-In-
dustrial Complex Companies List main-
tained by the Office of Foreign Assets 
Control of the Department of the Treas-
ury; 
(ii) the list of specially designated na-
tionals and blocked persons maintained by 
the Office of Foreign Assets Control of the 
Department of the Treasury (commonly 
known as the ‘‘SDN list’’); 
(iii) the annual list published in the 
Federal Register by the Department of De-
fense of Chinese military companies oper-
ating in the United States pursuant to sec-
tion 1260H of the William M. (Mac) 
Thornberry National Defense Authoriza-
tion Act for Fiscal Year 2021 (10 U.S.C. 
113 note); 
(iv) the most recently updated list de-
veloped pursuant to 1286(c)(9) of the 
John S. McCain National Defense Author-
ization Act for Fiscal Year 2019 (Public 
Law 115–32; 10 U.S.C. 4001 note); 
(v) the UFLPA Entity List main-
tained by the Department of Homeland Se-
1386 
curity pursuant to the Uyghur Forced 
Labor Prevention Act (Public Law 117– 
78); 
(vi) the Military End-User List main-
tained by the Department of Commerce 
and set forth in Supplement No. 7 to part 
744 of the Export Administration Regula-
tions; 
(vii) the Entity List maintained by 
the Bureau of Industry and Security of the 
Department of Commerce and set forth in 
Supplement No. 4 to part 744 of title 15, 
Code of Federal Regulations; 
(viii) the Denied Persons List main-
tained by the Department of Commerce 
and described in section 764.3(a)(2) of the 
Export Administration Regulations; 
(ix) the Debarred Parties List main-
tained by the Directorate of Defense Trade 
Controls of the Department of State; 
(x) the list of telecommunications 
companies of the People’s Republic of 
China designated under section 889 of the 
John S. McCain National Defense Author-
ization Act for Fiscal Year 2019 (Public
1387 
Law 115– 232; 41 U.S.C. note prec. 3901) 
as posing national security risks to the 
United States; 
(xi) the list of semiconductor compa-
nies of the People’s Republic of China and 
affiliates designated under section 5949 of 
the James M. Inhofe National Defense Au-
thorization Act for Fiscal Year 2023 (Pub-
lic Law 117–263; 41 USC 4713 note) as 
posing national security risks to the United 
States; or 
(xii) the list maintained by the Fed-
eral Communications Commission of equip-
ment and services covered by section 2 of 
the Secure and Trusted Communications 
Networks Act of 2019 (commonly referred 
to as the FCC Covered List); 
(B) is an entity that— 
(i) is owned, controlled, directed by, 
or subject to the jurisdiction or influence 
of a government of a foreign adversary 
country; and 
(ii) performs or supports functions in-
volving—
1388 
(I) national defense or military 
modernization, including the develop-
ment, application, or integration of ci-
vilian capabilities for military, para-
military, or security purposes; 
(II) intelligence, surveillance, or 
cyber operations, including activities 
intended to collect, exploit, disrupt, or 
influence information systems or com-
munications infrastructure; 
(III) the development, produc-
tion, testing, or proliferation of weap-
ons systems, critical technologies, or 
dual-use items, as defined under ap-
plicable United States law or regula-
tion; 
(IV) foreign malign influence or 
interference, 
involving 
subversive, 
undeclared, coercive, or criminal ac-
tivities, which may include propa-
ganda, censorship, information manip-
ulation, or efforts to influence aca-
demic, political, or civic institutions, 
whether conducted directly by foreign 
governments, state-linked entities, or
1389 
through affiliated non-state actors, or 
their proxies; 
(V) human rights abuses or simi-
larly unethical practices, such as the 
use of forced labor, repression of eth-
nic or religious groups, or violations of 
international human rights standards; 
(VI) illicit technology transfer ef-
forts that threaten United States re-
search integrity or economic competi-
tiveness; or 
(VII) academic, scientific, or 
technical collaboration that materially 
contributes to or supports any of the 
functions described in subclauses (I) 
through (VI); or 
(C) participates in a foreign talent recruit-
ment program as that term is defined by the 
Director of the Office of Science and Tech-
nology Policy pursuant to section 10631(c) of 
the Research and Development, Competition, 
and Innovation Act (division B of Public Law 
117–167; 42 U.S.C. 19231))) from a foreign 
adversary country or has participated in such a 
program at any time in the period of 10 years
1390 
preceding the date of application for a covered 
award. 
(8) The term ‘‘institution of higher education’’ 
has the meaning given that term in section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 
1002). 
(9) The term ‘‘research agency’’ means any 
Federal agency with an annual extramural research 
expenditure. 
TITLE 
XVIII—STREAMLINING 
PROCUREMENT FOR EFFEC-
TIVE EXECUTION AND DELIV-
ERY 
Subtitle A—Alignment of the 
Defense Acquisition System 
SEC. 1801. ALIGNMENT OF THE DEFENSE ACQUISITION SYS-
TEM WITH THE NEEDS OF MEMBERS OF THE 
ARMED FORCES. 
(a) OBJECTIVES
OF DEFENSE ACQUISITION SYS-
TEM.— 
(1) IN
GENERAL.—Section 3102 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 3102. Objectives of the defense acquisition system 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
ensure that the defense acquisition system exists to expe-
1391 
ditiously provide the armed forces with the capabilities 
necessary to operate effectively, to address evolving 
threats, and to maintain the military advantage of the 
United States in the most cost-effective manner prac-
ticable. 
‘‘(b) GUIDANCE.—The Secretary of Defense shall 
issue guidance to carry out subsection (a) that requires 
the following: 
‘‘(1) All activities of the defense acquisition sys-
tem contribute to the expeditious delivery of capa-
bilities to enhance the operational readiness of the 
armed forces and enable the missions of the Depart-
ment of Defense. 
‘‘(2) The defense acquisition system maximizes 
the effective use of resources by delivering capabili-
ties that offer the best value for the investment 
made in each capability. 
‘‘(3) The defense acquisition system encourages 
and supports the integration of innovative solutions 
to enhance military effectiveness and responsiveness 
to emerging threats. 
‘‘(4) The defense acquisition system encourages 
an iterative approach to designing and testing tech-
nical solutions to enable early identification of solu-
tions that do not deliver desired results.
1392 
‘‘(5) The defense acquisition system supports a 
leadership and organizational structure that encour-
ages risk-taking, collaboration, and learning through 
failure. 
‘‘(6) The training and development of members 
of the acquisition workforce ensures that such mem-
bers have the skills to effectively manage acquisition 
activities in accordance with this section.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) UNDER SECRETARY OF DEFENSE FOR 
ACQUISITION
AND
SUSTAINMENT.—Section 
133b(b) of title 10, United States Code, is 
amended— 
(i) in paragraph (1), by striking ‘‘de-
livering and sustaining timely, cost-effec-
tive capabilities for the armed forces (and 
the Department)’’ and inserting ‘‘expedi-
tiously providing the armed forces with the 
capabilities necessary to operate effectively, 
to address evolving threats, and to main-
tain the military advantage of the United 
States in the most cost-effective manner 
practicable’’; and 
(ii) in paragraph (9)(A), by striking 
‘‘defense acquisition programs’’ and insert-
1393 
ing ‘‘the defense acquisition system, in ac-
cordance with the objectives established by 
section 3102 of this title’’. 
(B) DIRECTOR
OF
OPERATIONAL
TEST 
AND
EVALUATION.—Section 139 of title 10, 
United States Code, is amended— 
(i) in subsection (b), by redesignating 
paragraphs (1) through (6) as paragraphs 
(2) through (7), respectively; and 
(ii) by inserting before paragraph (2), 
as so redesignated, the following new para-
graph: 
‘‘(1) ensure that all operational test and evalua-
tion activities are aligned with, and are conducted in 
a manner that supports, the objectives of the defense 
acquisition system established by section 3102 of 
this title;’’. 
(C) DIRECTOR OF COST ASSESSMENT AND 
PROGRAM
EVALUATION.—Section 139a(d) of 
title 10, United States Code, is amended by in-
serting ‘‘shall carry out the requirements of this 
section in accordance with the objectives estab-
lished by section 3102 of this title and’’ before 
‘‘shall serve’’.
1394 
(b) CIVILIAN MANAGEMENT OF THE DEFENSE AC-
QUISITION SYSTEM.—Section 3103 of title 10, United 
States Code, is amended— 
(1) in subsection (a), by striking ‘‘to ensure the 
successful and efficient operation of the defense ac-
quisition system’’ and inserting ‘‘in accordance with 
the objectives of the defense acquisition system es-
tablished pursuant to section 3102 of this title’’; and 
(2) in subsection (b), by striking ‘‘to ensure the 
successful and efficient operation of such elements of 
the defense acquisition system.’’ and inserting the 
following: ‘‘in accordance with the objectives of the 
defense acquisition system established pursuant to 
section 3102 of this title. In carrying out this sub-
section, each service acquisition executive shall per-
form the following: 
‘‘(1) Implement strategies to effectively and ef-
ficiently respond to changes in capability require-
ments. 
‘‘(2) Use data-driven decisionmaking to manage 
trade-offs among life-cycle costs, delivery schedules, 
performance objectives, technical feasibility, and pro-
curement quantity objectives to ensure acquisition 
and sustainment programs deliver the best value for 
the investment made in the program.
1395 
‘‘(3) Use iterative development cycles and dis-
continue or terminate the development of capabili-
ties— 
‘‘(A) that no longer align with approved 
capability requirements or priorities; or 
‘‘(B) are experiencing significant cost 
growth, performance deficiencies, or delays in 
schedule. 
‘‘(4) Provide to the Joint Requirements Council 
timely updates on changes to the acquisition pro-
grams under the service acquisition executive, in-
cluding any material changes to the capability re-
quirements, the quantity to be procured, or the de-
livery schedule, to enable the Joint Requirements 
Council to identify and prioritize gaps in joint mili-
tary capabilities resulting from such changes in ac-
cordance with section 181(b) of this title. 
‘‘(5) Ensure the period of assignment of an in-
dividual serving in a critical acquisition position (as 
defined in section 1731 of this title) is of sufficient 
duration to ensure the development and use of ac-
quired expertise, institutional capacity, account-
ability in decisionmaking, and stability in the over-
sight and management of acquisition activities.
1396 
‘‘(6) Ensure that contracting officers are appro-
priately trained and assigned to support effective 
contract management.’’. 
(c) ACQUISITION-RELATED FUNCTIONS OF CHIEFS 
OF THE ARMED FORCES.— 
(1) PERFORMANCE OF CERTAIN ACQUISITION- 
RELATED FUNCTIONS.—Section 3104(a) of title 10, 
United States Code, is amended— 
(A) by inserting ‘‘, in accordance with the 
objectives 
established 
pursuant 
to 
section 
3102,’’ after ‘‘Secretary of the military depart-
ment concerned’’; and 
(B) by amending paragraphs (1) through 
(7) to read as follows: 
‘‘(1) The development of capability requirement 
statements for equipping the armed force concerned 
that— 
‘‘(A) describe the operational problem to 
provide necessary context for the capability re-
quirement; and 
‘‘(B) describe the solution sought in a non- 
prescriptive manner to allow agile and innova-
tive capability development to address the oper-
ational problem;
1397 
‘‘(2) The implementation of strategies to effec-
tively and efficiently inform recommendations re-
garding changes in capability requirements described 
in paragraph (1). 
‘‘(3) The recommendation of trade-offs among 
life-cycle costs, delivery schedules, performance ob-
jectives, technical feasibility, and procurement quan-
tity objectives to ensure acquisition programs deliver 
best value for the investment made. 
‘‘(4) In consultation with the Joint Require-
ments Council, the establishment and prioritization 
of requirements to expeditiously provide the armed 
forces with the capabilities needed to operate effec-
tively, to address evolving threats, and to maintain 
the military advantage of the United States. 
‘‘(5) The use of data-driven decisionmaking to 
prioritize resource allocation to meet operational 
readiness requirements (as defined in section 4322 
of this title) and the materiel readiness objectives es-
tablished by the Secretary of the military depart-
ment concerned under section 118(c) of this title. 
‘‘(6) Support for an environment that enables 
the adoption and integration of innovative solutions 
and technologies to enhance military effectiveness 
and responsiveness.
1398 
‘‘(7) Any recommendation for the termination 
of the development of capabilities— 
‘‘(A) that no longer align with approved 
capability requirements or priorities; 
‘‘(B) for which costs have significantly in-
creased; or 
‘‘(C) for which schedule delays have been 
significant. 
‘‘(8) Support for the development of career 
paths in acquisition for military personnel (as re-
quired by section 1722a of this title) to ensure such 
personnel have the necessary skills, knowledge, and 
experience to fulfill the objectives established pursu-
ant to section 3102 of this title.’’. 
(2) ADHERENCE TO REQUIREMENTS IN MAJOR 
DEFENSE
ACQUISITION
PROGRAMS.—Section 
3104(b) of title 10, United States Code, is amend-
ed— 
(A) in paragraph (1), by striking ‘‘program 
capability document supporting a Milestone B 
or subsequent decision’’ and inserting ‘‘require-
ments documents’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘prior to entry into the Materiel Solution
1399 
Analysis Phase under Department of De-
fense Instruction 5000.02’’; and 
(ii) in subparagraph (B), by striking 
‘‘cost, schedule, technical feasibility, and 
performance 
trade-offs’’ 
and 
inserting 
‘‘life-cycle cost, delivery schedule, perform-
ance objective, technical feasibility, and 
procurement quantity trade-offs’’. 
(3) DEFINITIONS.—Section 3104(d) of title 10, 
United States Code, is amended to read as follows: 
‘‘(d) REQUIREMENTS DOCUMENT DEFINED.—In this 
section, the term ‘requirements document’ means a docu-
ment that establishes the need for a materiel approach to 
resolve a capability requirement or a joint capability re-
quirement (as such terms are defined in section 181 of 
this title).’’. 
(d) IMPLEMENTATION.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall revise Department of Defense Directive 
5000.01 and any other relevant instructions, policies, or 
guidance to carry out the requirements of this section and 
the amendments made by this section. 
(e) TECHNICAL AMENDMENTS.— 
(1) Section 3101 of title 10, United States 
Code, is amended to read as follows:
1400 
‘‘§ 3101. Definitions 
‘‘In this chapter: 
‘‘(1) The term ‘best value’ means, with respect 
to an acquisition, the optimal combination of cost, 
quality, technical capability or solution quality, and 
delivery schedule. 
‘‘(2) The term ‘capability requirement’ has the 
meaning provided in section 181 of this title. 
‘‘(3) The term ‘cost-effective’ means, with re-
spect to an acquisition, the capacity to deliver better 
results for the same or lower cost compared to alter-
natives.’’. 
(2) Section 3001(c) of title 10, United States 
Code, is amended by striking ‘‘this section’’ and in-
serting ‘‘this part’’. 
SEC. 1802. PROGRAM EXECUTIVE OFFICER RESPONSIBIL-
ITIES. 
(a) IN GENERAL.—Subchapter III of chapter 87 of 
title 10, United States Code, is amended by inserting after 
section 1731 the following new section: 
‘‘§ 1732. Program executive officer 
‘‘(a) IN GENERAL.—A program executive officer is 
the senior official responsible for the oversight of the 
plans, budgets, and execution of the programs assigned 
to the portfolio of such senior official, including life-cycle 
management.
1401 
‘‘(b) OBJECTIVES.—In carrying the activities de-
scribed in subsection (a), the program executive officer 
shall seek to achieve the following objectives: 
‘‘(1) Expeditiously provide the armed forces 
with the capabilities needed to operate effectively, 
address evolving threats, and maintain the military 
advantage of the United States in the most cost-ef-
fective manner practicable. 
‘‘(2) Maximize the effective use of resources by 
delivering capabilities that offer the best value for 
the investment made in each capability. 
‘‘(3) Enable the integration of innovative solu-
tions and technologies to enhance military effective-
ness and responsiveness to emerging threats. 
‘‘(c) SPECIFIC RESPONSIBILITIES.— 
‘‘(1) IN GENERAL.—For the programs assigned 
to the portfolio of a program executive officer, such 
program executive officer shall be responsible for the 
following: 
‘‘(A) Provide expeditious delivery of the ca-
pabilities necessary to effectively respond to na-
tional security challenges by overseeing the pro-
curement, development, and sustainment of de-
fense acquisition programs assigned to the pro-
gram executive officer.
1402 
‘‘(B) Ensure the cost-effective allocation of 
resources by delivering operational capabilities. 
‘‘(C) Adjust requirements, other than re-
quirements that are established as key perform-
ance parameters, to maximize the agility and 
speed in program execution in accordance with 
the objectives described in subsection (b). 
‘‘(D) Use iterative development cycles and 
discontinue or terminate the development of ca-
pabilities— 
‘‘(i) that no longer align with ap-
proved capability requirements (as defined 
in section 181 of this title) or priorities; or 
‘‘(ii) that are experiencing significant 
cost growth, performance deficiencies, or 
delays in schedule. 
‘‘(E) Evaluate and implement trade-offs 
among life-cycle costs, delivery schedules, per-
formance objectives, technical feasibility, and 
procurement quantity objectives to ensure ac-
quisition and sustainment programs deliver best 
value in meeting capability requirements (as de-
fined in section 181 of this title). 
‘‘(F) Use data-driven decisionmaking to 
prioritize resource allocation to meet oper-
1403 
ational readiness requirements and materiel 
readiness objectives established by the Secretary 
concerned under section 118(c) of this title. 
‘‘(G) Collaborate with the Mission Engi-
neering and Integration Activity established 
under section 1813 of the of the National De-
fense Authorization Act for Fiscal Year 2026 to 
conduct cross-service technical and operational 
activities to integrate emerging technologies, 
prototypes, and operational concepts, as appro-
priate. 
‘‘(H) Provide support to the Requirements, 
Acquisition, and Programming Integration Di-
rectorate with respect to the performance of the 
responsibilities of the Directorate under section 
186 of this title and serve as a member of the 
Directorate in accordance with such section. 
‘‘(2) MILESTONE
DECISION
AUTHORITY
DU-
TIES.—A program executive officer shall be the mile-
stone decision authority for a program when directed 
by the service acquisition executive of the military 
department that is managing the program or if des-
ignated by the Secretary of Defense. 
‘‘(d) FUNCTIONAL SUPPORT.—The Secretary con-
cerned with respect to a program executive officer shall
1404 
ensure that each such program executive officer is as-
signed dedicated personnel and other resources required 
to successfully perform the assigned duties and respon-
sibilities of such program executive officer. Personnel shall 
be under the exclusive authority and control of such offi-
cer. Personnel and resources shall not be provided through 
matrixed, collateral duty, or dual-reporting arrangements, 
except as specifically authorized by the Secretary in writ-
ing. Personnel and resources required include— 
‘‘(1) contracting and contract management; 
‘‘(2) estimating costs; 
‘‘(3) financial management; 
‘‘(4) life-cycle management and product sup-
port; 
‘‘(5) program management; 
‘‘(6) engineering and technical management; 
and 
‘‘(7) developmental testing and evaluation.’’. 
(b) 
AMENDMENT
TO
DEFINITIONS.—Section 
1737(a)(4) of title 10, United States Code, is amended 
to read as follows: 
‘‘(4) The term ‘program executive officer’ 
means an individual described in section 1732(a) of 
this title.’’.
1405 
SEC. 1803. PRODUCT SUPPORT MANAGER RESPONSIBIL-
ITIES AND REQUIREMENTS. 
(a) IN GENERAL.—Subchapter III of chapter 87 of 
title 10, United States Code, is amended by inserting after 
section 1732, as added by section 1802, the following new 
section: 
‘‘§ 1733. Product support manager 
‘‘(a) IN GENERAL.—A product support manager is 
the individual responsible for managing support functions 
required to field and maintain the readiness and oper-
ational capability of a covered system in support of the 
life-cycle management responsibilities of the program 
manager for such covered system. 
‘‘(b) OBJECTIVES.—In carrying the activities de-
scribed in subsection (a), the product support manager 
shall seek to achieve the objectives of the defense acquisi-
tion system established pursuant to section 3102 of this 
title. 
‘‘(c) SPECIFIC RESPONSIBILITIES.—A product sup-
port manager shall be responsible for the following: 
‘‘(1) Provide product support and subject mat-
ter expertise with respect to a covered system to the 
program manager for the covered system to assist 
with the development, resourcing, implementation, 
and execution of the product support strategy devel-
1406 
oped by the product support manager under section 
4322 of this title for the covered system. 
‘‘(2) Collaborate with the chief engineer and 
systems engineers for the covered system— 
‘‘(A) to develop the life-cycle sustainment 
plan and any product support plans for the cov-
ered system; and 
‘‘(B) to analyze the operating and support 
costs of the covered system to ensure the cost- 
effective operation, management, and avail-
ability of the covered system. 
‘‘(3) Conduct early risk identification, mitiga-
tion, and product support analyses that inform best 
value solutions in life-cycle planning and manage-
ment. 
‘‘(4) Provide input on systems engineering re-
quirements, design, budgeting, maintenance plan-
ning, and acquisition strategies for covered systems. 
‘‘(5) Support the program manager in evalu-
ating trade-offs among life-cycle costs, delivery 
schedules, performance objectives, technical feasi-
bility, and procurement quantity objectives to ensure 
each covered system delivers the greatest value for 
the investment made in the covered system.
1407 
‘‘(6) Use data-driven decisionmaking, predictive 
analysis, and appropriate modeling tools related to 
reliability and maintainability of the covered system 
to prioritize resource allocation to meet operational 
readiness requirements and materiel readiness objec-
tives (established under section 118(c) of this title). 
‘‘(7) Support each Secretary of a military de-
partment in performance of a core logistics analysis 
pursuant to section 2464 of this title. 
‘‘(d) COVERED SYSTEM DEFINED.—In this section, 
the term ‘covered system’ has the meaning given in section 
4322 of this title.’’. 
(b) EDUCATION, TRAINING, AND EXPERIENCE RE-
QUIREMENTS FOR PRODUCT SUPPORT MANAGERS.—Sec-
tion 1735 title 10, United States Code, is amended— 
(1) by redesignating subsections (c), (d), and 
(e) as subsections (d), (e), and (f), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) PRODUCT SUPPORT MANAGER.—Before being 
assigned to a position as product support manager, a per-
son— 
‘‘(1) shall have completed all life-cycle logistics 
certification and training requirements prescribed by 
the Secretary of Defense;
1408 
‘‘(2) shall have executed a written agreement as 
required in section 1734(b)(2) of this title; and 
‘‘(3) in the case of— 
‘‘(A) a product support manager of a 
major defense acquisition program, shall have 
at least eight years of experience in life-cycle lo-
gistics, at least two years of which were per-
formed in a systems program office or similar 
organization; and 
‘‘(B) a product support manager of a sig-
nificant nonmajor defense acquisition program, 
shall have at least six years of experience in 
life-cycle logistics.’’. 
(c) 
CONFORMING
AMENDMENTS.—Section 
1731(a)(1)(B) title 10, United States Code, is amended 
by adding at the end the following new clause: 
‘‘(iv) Product support manager.’’. 
SEC. 1804. AMENDMENTS TO LIFE-CYCLE MANAGEMENT 
AND PRODUCT SUPPORT. 
(a) 
REORGANIZATION
OF
LIFE-CYCLE
AND 
SUSTAINMENT CHAPTER.— 
(1) IN
GENERAL.—Chapter 323 of title 10, 
United States Code, is amended— 
(A) by repealing sections 4321, 4323, and 
4324;
1409 
(B) by redesignating section 4328 as sec-
tion 4321 and transferring such section so as to 
appear after the table of sections at the begin-
ning of such chapter; 
(C) by redesignating section 4325 as sec-
tion 4323 and transferring such section so as to 
appear after section 4321; 
(D) in section 4323, as so redesignated, by 
striking ‘‘section 4324 of this title’’ and insert-
ing ‘‘section 4322 of this title’’; and 
(E) by amending the table of sections at 
the beginning of such chapter to read as fol-
lows: 
‘‘4321. Weapon system design: sustainment factors. 
‘‘4322. Life-cycle management and product support. 
‘‘4323. Major weapon systems: assessment, management, and control of oper-
ating and support costs.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 3041(a) of title 10, United 
States Code, is amended by striking ‘‘sections 
4292(e) and 4321’’ and inserting ‘‘section 
4292(e)’’. 
(B) Section 3221(b)(2) of title 10, United 
States Code, is amended by striking ‘‘4321, 
4323, and 4328 of this title’’ and inserting 
‘‘and 4321 of this title,’’.
1410 
(C) Section 4211(c)(2)(D) of title 10, 
United States Code, is amended by striking 
‘‘section 4324 of this title’’ and inserting ‘‘sec-
tion 4322 of this title’’. 
(D) Section 4252(b)(14) of title 10, United 
States Code, is amended by striking ‘‘section 
4324(b) of this title’’ and inserting ‘‘section 
4322 of this title’’. 
(b) LIFE-CYCLE MANAGEMENT AND PRODUCT SUP-
PORT.—Chapter 323 of title 10, United States Code, as 
amended by subsection (a), is further amended by insert-
ing after section 4321 the following new section: 
‘‘§ 4322. Life-cycle management and product support 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
ensure that each covered system is supported by a life- 
cycle sustainment plan— 
‘‘(1) that is approved by the senior acquisition 
executive responsible for such covered system; and 
‘‘(2) that meets applicable operational readiness 
requirements and materiel readiness objectives (es-
tablished under section 118(c) of this title) in the 
most cost-effective manner practicable. 
‘‘(b) PRODUCT SUPPORT MANAGER.—The Secretary 
of Defense shall designate a product support manager (as 
defined in section 1733 of this title) to serve under the
1411 
supervision of a program manager for each covered sys-
tem. 
‘‘(c) LIFE-CYCLE SUSTAINMENT PLAN.—(1) A prod-
uct support manager shall develop, update, and implement 
a life-cycle sustainment plan for each covered system for 
which the product support manager is responsible. Such 
plan shall include the following: 
‘‘(A) A comprehensive product support strategy 
to best achieve operational readiness requirements 
and materiel readiness objectives throughout the 
planned life cycle of such system. 
‘‘(B) A life-cycle cost estimate for the covered 
system that— 
‘‘(i) is based on the planned product sup-
port strategy described in subparagraph (A); 
and 
‘‘(ii) if the covered system is a major de-
fense acquisition program or major subpro-
gram, is developed in accordance with the re-
quirements to support a Milestone A approval 
(as defined in section 4251(e) of this title), 
Milestone B approval, or Milestone C approval 
(as such terms are defined in section 4172(e) of 
this title).
1412 
‘‘(C) Recommended engineering and design con-
siderations that support cost-effective sustainment of 
the covered system and best value solutions in life 
cycle planning and management. 
‘‘(D) An intellectual property management plan 
for product support developed in accordance with 
section 3774 of this title. 
‘‘(E) A strategy to maximize use of public and 
private sector capabilities to establish Government- 
private partnerships— 
‘‘(i) with appropriate incentives for each 
partner to contribute to the achievement of 
operational readiness requirements and materiel 
readiness objectives in the most cost-effective 
manner practicable; and 
‘‘(ii) that considers the roles of each part-
ner as the covered system transitions from ac-
quisition, development, production, fielding, 
sustainment, and disposal. 
‘‘(F) A plan to transition the covered system 
from production to initial fielding that addresses 
specific products or services required for successful 
initial fielding of the covered system, including— 
‘‘(i) a description of the necessary tooling 
or other unique support equipment, require-
1413 
ments for initial spare parts and components, 
technical handbooks and maintenance manuals, 
maintenance training, and facilities; 
‘‘(ii) an identification of the funding re-
quired to provide such products and services for 
any initial fielding location of the covered sys-
tem; 
‘‘(iii) an identification of any procurement 
line, program element, or subactivity group in 
the budget of the Secretary concerned associ-
ated with such products or services; 
‘‘(iv) the timeline for delivery of such prod-
ucts and services; and 
‘‘(v) an assessment of any reduction in 
operational readiness requirements and materiel 
readiness objectives if such products and serv-
ices are not provided in accordance with clause 
(iv). 
‘‘(2) In developing each life-cycle sustainment plan 
required by this section, the product support manager 
shall consider the following: 
‘‘(A) Affordability constraints and key cost fac-
tors that could affect operating and support costs 
during the life cycle of the covered system.
1414 
‘‘(B) Sustainment risks or challenges to sus-
taining the covered system in operational environ-
ments, included contested logistics environments (as 
defined in section 2926 of this title). 
‘‘(C) Compliance with— 
‘‘(i) requirements to maintain a core logis-
tics capability under section 2464 of this title; 
and 
‘‘(ii) limitations on the performance of 
depot-level maintenance of materiel under sec-
tion 2466 of this title. 
‘‘(D) A defense industrial base strategy to 
maintain a robust, resilient, and innovative defense 
industrial base to support requirements throughout 
the life cycle of the covered system. 
‘‘(d) CONTINUOUS ASSESSMENT AND ACTIVE MAN-
AGEMENT.—In carrying out the duties of this section and 
section 1733 of this title, the product support manager 
shall— 
‘‘(1) continuously assess and actively manage 
performance of each covered system for which the 
product support manager is responsible against the 
life-cycle sustainment plan for such covered system; 
and
1415 
‘‘(2) as appropriate, integrate commercial best 
practices, use commercial standards, and use ad-
vanced technologies to enhance the product support 
of each covered system. 
‘‘(e) RECOMMENDATIONS.—(1) The product support 
manager shall recommend changes to the product support 
strategy required under subsection (c)(1)(A) of a covered 
system to the program manager responsible for such cov-
ered system to meet the requirements of subsection (a). 
‘‘(2) The program manager shall provide to the senior 
acquisition executive responsible for a covered system any 
recommendations for such covered system made under 
paragraph (1) that the program manager did not imple-
ment along with the rationale for not implementing such 
recommendations. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered system’ means— 
‘‘(A) a major defense acquisition program 
as defined in section 4201 of this title; 
‘‘(B) a major subprogram as described in 
section 4203 of this title; or 
‘‘(C) an acquisition program or project 
that is carried out using the rapid fielding or 
rapid prototyping acquisition pathway under 
section 3602 of this title that is estimated by
1416 
the Secretary of Defense to require an eventual 
total 
expenditure 
described 
in 
section 
4201(a)(2) of this title. 
‘‘(2) The term ‘operational readiness’ means 
the capability of a unit of the armed forces, vessel, 
weapon system, or equipment to perform the mis-
sions or functions for which it is organized or de-
signed. 
‘‘(3) The term ‘product support’ means the set 
of support functions, as determined by the product 
support manager, required to field and maintain the 
readiness and operational capability of a covered sys-
tem, or a subsystem or component of a covered sys-
tem.’’. 
(c) CONFORMING
AMENDMENTS
TO
MATERIEL 
READINESS
METRICS
AND
OBJECTIVES
FOR
MAJOR 
WEAPON SYSTEMS.—Section 118 of title 10, United 
States Code, is amended— 
(1) in the section heading, by inserting ‘‘mate-
riel readiness’’ before ‘‘objectives’’; 
(2) in subsection (b), by striking ‘‘shall ad-
dress’’ and inserting ‘‘shall establish procedures and 
a computation methodology to determine’’; 
(3) in subsection (c)—
1417 
(A) in paragraph (1), by striking ‘‘the 
metrics required’’ and all that follows through 
the period at the end and inserting ‘‘materiel 
readiness objectives for each major weapon sys-
tem.’’; and 
(B) in paragraph (2), by striking ‘‘the 
metrics required by subsection (b)’’ and insert-
ing ‘‘such readiness objectives’’; 
(4) in subsection (d)(2), by striking ‘‘readiness 
goals or objectives’’ and inserting ‘‘materiel readi-
ness objectives’’; 
(5) in subsection (e), in the matter preceding 
paragraph (1), by inserting a comma after ‘‘des-
ignated mission’’; and 
(6) in subsection (f)— 
(A) by redesignating paragraphs (3), (4), 
and (5) as paragraphs (4), (5), and (6), respec-
tively; and 
(B) by inserting after paragraph (2) the 
following new paragraph: 
‘‘(3) The term ‘materiel readiness objective’ 
means the minimum required availability of each 
major weapon system that is necessary to fulfill the 
requirements of the strategic framework and guid-
ance referred to in subsection (a).’’.
1418 
SEC. 1805. MODIFICATIONS RELATING TO LIFE-CYCLE AND 
SUSTAINMENT PROVISIONS. 
(a) MODIFICATION
TO LIFE-CYCLE MANAGEMENT 
AND PRODUCT SUPPORT.—Subsection (c)(1)(F) of section 
4322 of title 10, United States Code, as amended by sec-
tion 1804 of this Act, is further amended— 
(1) by striking ‘‘A plan’’ and inserting ‘‘After 
consideration of the views received by the milestone 
decision authority from appropriate materiel, logis-
tics, or fleet representatives, a plan’’; 
(2) by redesignating clauses (iii) through (v) as 
clauses (iv) through (vi), respectively; 
(3) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) an assessment as to the required 
number of training simulators, including 
the initial operational capability and over-
all fielding of such simulators;’’; and 
(4) in clause (vi) (as so redeisgnated), by strik-
ing ‘‘in accordance with clause (iv)’’ and inserting in 
‘‘accordance with clause (v)’’. 
(b) ELEMENTS.—Subsection (b) of section 4323 of 
title 10, United States Code, as redesignated by section 
1804 of this Act, is amended— 
(1) by striking paragraphs (9) and (10);
1419 
(2) by redesignating paragraphs (4) through 
(8) as paragraphs (5) through (9), respectively; 
(3) in paragraph (1), by inserting ‘‘in accord-
ance with the requirements of section 118 of this 
title and’’ before ‘‘in conjunction’’; 
(4) in paragraph (3), by striking ‘‘, to deter-
mine’’ and all that follows through the semicolon at 
the end and inserting ‘‘and make necessary adjust-
ments to the life-cycle sustainment plan required by 
section 4322 of this title to ensure such major weap-
on system meets applicable operational readiness re-
quirements and materiel readiness objectives (estab-
lished in accordance with section 118(c) of this title) 
in the most cost-effective manner practicable;’’; 
(5) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) require the military departments to, not 
later than August 1 of each calendar year, conduct 
an annual assessment of the actual performance of 
each major weapon system against the operational 
readiness requirements and materiel readiness objec-
tives and use such assessment to— 
‘‘(A) identify any factors contributing to a 
major weapon system failing to meet such re-
quirements and objectives;
1420 
‘‘(B) develop and implement a corrective 
action plan to address identified shortfalls in 
meeting such requirements and objectives in an 
expeditious manner; and 
‘‘(C) inform the submission of materials to 
Congress required by section 118(c)(2) of this 
title and the development of the future years 
defense program described in section 221 of 
this title;’’; 
(6) in paragraph (9) (as so redesignated), by 
inserting ‘‘and’’ after the semicolon at the end; and 
(7) by inserting after paragraph (9) (as so re-
designated) the following new paragraph: 
‘‘(10) prior to the Milestone B approval (or 
equivalent approval) for a major weapon system, re-
quire the military departments to prepare a life cycle 
intellectual property management plan for product 
support sufficient to comply with the requirements 
of section 2464 of this title, including requirements 
for technical data, software, and modular open sys-
tem approaches (as defined in section 4401 of this 
title).’’. 
(c) SUBMISSION TO CONGRESS.—Such section 4323 
is further amended—
1421 
(1) by redesignating subsection (d) as sub-
section (e); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection: 
‘‘(d) SUBMISSION
TO CONGRESS.—Not later than 
December 31, 2026, and annually thereafter, each Sec-
retary of a military department shall submit to the con-
gressional defense committees a report that includes the 
following: 
‘‘(1) Findings from a review of the effectiveness 
of the life-cycle sustainment plan for a major weap-
on system, as adjusted pursuant to subsection 
(b)(3). 
‘‘(2) Findings from the assessments required by 
subsection (b)(4). 
‘‘(3) A description of any corrective action plan 
required by subsection (b)(4)(B), and an update on 
progress made in implementing such a plan. 
‘‘(4) A description of how such assessments in-
formed the submission of materials to Congress re-
quired by section 118(c)(2) of this title and the de-
velopment of the future years defense program de-
scribed in section 221 of this title. 
‘‘(5) A summary of actions taken by the Sec-
retary to ensure that each major weapon system of
1422 
the military department under the jurisdiction of the 
Secretary meet the applicable operational readiness 
requirements and materiel readiness objectives (es-
tablished under section 118(c) of this title) in the 
most cost-effective manner practicable. 
‘‘(6) For a major weapon system that has not 
met established materiel readiness objectives for ma-
teriel availability or operational availability (as such 
terms are defined, respectively, in section 118 of this 
title) for three consecutive years, such report shall 
include a mitigation plan to address supply, mainte-
nance, or other issues contributing to failure to meet 
such objectives.’’. 
SEC. 1806. MAJOR CAPABILITY ACTIVITY AREAS AND PATH-
FINDER PROGRAMS. 
(a) TRANSITION PLAN REQUIRED.— 
(1) SUBMISSION OF PLAN.—Not later than one 
year after the date of the enactment of this Act, the 
Secretary of Defense, in coordination with each Sec-
retary of a military department, shall submit to the 
congressional defense committees a comprehensive 
plan for reorganizing the structure of the relevant 
defense budget materials to be primarily organized 
around major capability activity areas (‘‘MCAAs’’).
1423 
(2) ELEMENTS OF THE PLAN.—The plan re-
quired under paragraph (1) shall be developed to 
more effectively facilitate the development, fielding, 
operation, sustainment, and modernization of capa-
bilities or activities of the Department of Defense in 
accordance with the objectives established pursuant 
to section 3102 of title 10, United States Code, as 
added by section 1801 of this Act. Such plan shall 
include the following: 
(A) A description of each proposed MCAA, 
including how the specific capability of the De-
partment of Defense that is the subject of each 
MCAA aligns with and supports joint military 
capabilities. 
(B) A proposed schedule, including bench-
marks, for phased implementation of the plan 
to organize the programs of each military de-
partment and Defense Agency in a manner pri-
marily organized around MCAAs. 
(C) A description of any modifications to 
reporting, budget justification, or data systems 
required for defense budget materials to be pri-
marily organized around MCAAs, including 
modifications necessary to maintain trans-
1424 
parency and enable effective oversight by the 
congressional defense committees. 
(D) Recommendations for statutory or reg-
ulatory changes needed to facilitate the reorga-
nization of defense budget materials to be pri-
marily organized around MCAAs. 
(E) A strategy for maintaining clarity and 
detail for defense budget materials primarily or-
ganized around MCAAs to— 
(i) preserve accountability for the de-
livery of a capability of the Department of 
Defense that is the subject of the MCAA; 
and 
(ii) enable effective oversight by the 
congressional defense committees. 
(F) A description of the process for desig-
nating a Pathfinder under subsection (b). 
(3) ORGANIZATION BY MCAAS.— 
(A) IN GENERAL.—In designating the pro-
posed MCAAs required by subsection (a)(2)(A), 
the Secretary shall— 
(i) organize each proposed MCAA in a 
capability-oriented structure that reflects 
the unique and specific aspects of the sub-
ject capability of the MCAA;
1425 
(ii) assign relevant development, pro-
curement, operations, and sustainment ac-
tivities of the Department to the proposed 
MCAA as appropriate; and 
(iii) ensure each proposed MCAA is 
organized in a manner that— 
(I) will improve the ability to 
measure and manage the overall per-
formance in the delivery of the subject 
capability of the proposed MCAA; and 
(II) connects funding for activi-
ties assigned to the proposed MCAA 
to the delivery of subject capability. 
(B) FLEXIBILITY.—The Secretary of De-
fense shall ensure each military department and 
Defense Agency has flexibility, according to 
their specific mission requirements, in the orga-
nization of proposed MCAAs. 
(b) DESIGNATION OF PATHFINDER MCAAS.— 
(1) DESIGNATION.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall— 
(A) designate at least two program execu-
tive offices of the Department of Defense to be 
known as ‘‘Pathfinders’’;
1426 
(B) identify the program executive officer 
(as described in section 1732 of title 10, United 
States Code, as added by section 1802 of this 
Act) with the responsibility of administering 
each such Pathfinder; 
(C) ensure each such program executive of-
ficer organizes the programs assigned to such 
offices into a MCAA in accordance with the re-
quirements of subsection (a)(3); and 
(D) submit to the congressional defense 
committees a notification of each designation 
made under subparagraph (A), including the 
total amount authorized to be appropriated for 
each Pathfinder for fiscal year 2026 and a de-
scription of the MCAA associated with each 
Pathfinder. 
(2) ADDITIONAL
OR
ALTERNATIVE
MATE-
RIALS.—To inform the development of the plan re-
quired by subsection (a), each program executive of-
ficer for a Pathfinder shall prepare alternative or 
additional defense budget materials or develop alter-
native oversight mechanisms for the capability of the 
Department of Defense that is the subject of the 
Pathfinder.
1427 
(3) MODIFIED
TRANSFER
AUTHORITY
FOR 
PATHFINDERS.— 
(A) AUTHORITY.—The Secretary of De-
fense, acting through a Secretary of a military 
department or the head of a Defense Agency, 
may transfer amounts authorized for programs, 
projects, or activities that are included in a 
Pathfinder under the jurisdiction of such Sec-
retary or head among such programs, projects, 
or activities. 
(B) LIMITATIONS.—A transfer made under 
this paragraph— 
(i) shall directly support delivery of 
the capability of the Department of De-
fense that is the subject of the Pathfinder; 
(ii) may not be used to initiate a new 
start program (as described in section 
3601 of title 10, United States Code); 
(iii) may not be used to terminate a 
program or activity of the Department that 
was in operation on or before the date of 
the designation of the Pathfinder; and 
(iv) may not exceed 40 percent of the 
total amount for a Pathfinder specified 
under paragraph (1)(D).
1428 
(4) ADDITIONAL
PATHFINDERS.—The Sec-
retary of Defense may designate additional MCAAs 
as Pathfinders under the authority of this subsection 
if the Secretary notifies the congressional defense 
committees not later than 15 days prior to each 
such designation. 
(c) REPORT TO CONGRESS.— 
(1) IN
GENERAL.—Not later than 540 days 
after the date of the enactment of this Act, and an-
nually thereafter until December 31, 2029, the Sec-
retary of Defense shall submit to the congressional 
defense committees a report on the progress of the 
Secretary of Defense in— 
(A) implementing the plan to reorganize 
the structure of the defense budget materials to 
be primarily organized around major capability 
activity areas; and 
(B) assessing the effectiveness of the use 
of a capability-oriented structure in subsection 
(a)(3) and Pathfinders in subsection (b) to— 
(i) improve the ability to measure and 
manage the overall performance in the de-
livery of the subject capability of the pro-
posed MCAA or Pathfinder;
1429 
(ii) inform and improve budget plan-
ning for future activities assigned to the 
proposed MCAA or Pathfinder for the de-
livery of subject capability; and 
(iii) achieve the objectives of the de-
fense acquisition system established pursu-
ant to section 3102 of title 10, United 
States Code (as added by section 1801 of 
this Act). 
(2) CONTENTS.—The report required under 
paragraph (1) shall include the following: 
(A) An evaluation of how the use of 
MCAAs in preparing defense budget materials 
has affected the use and allocation of resources 
and the alignment of such materials with the 
objectives of the defense acquisition system. 
(B) The extent to which MCAAs and use 
of the transfer authority under subsection 
(b)(3) for Pathfinders affect the speed of ad-
dressing emerging threats and adopting new 
technologies. 
(C) An analysis of any costs or benefits of 
using MCAAs. 
(D) Recommendations, including statutory 
or regulatory modifications, for—
1430 
(i) expanding the use of Pathfinders; 
and 
(ii) continuing the transition to using 
MCAAs to prepare defense budget mate-
rials. 
(d) GUIDANCE AND DIRECTIVES.—The Secretary of 
Defense shall issue such rules or guidance as necessary 
to carry out this section, and shall ensure such rules and 
guidance align with recommendations for improved agility 
and transparency provided by the Commission on Plan-
ning, Programming, Budgeting and Execution Reform 
(established under section 1004 of the National Defense 
Authorization Act for Fiscal Year 2022 (Public Law 117– 
81)). 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘defense budget materials’’, with 
respect to a fiscal year, means the materials sub-
mitted to Congress by the Secretary of Defense in 
support of the budget for that fiscal year. 
(2) The term ‘‘major capability activity area’’ 
or ‘‘MCAA’’ means a compilation of activities that 
relate to the delivery of a capability of the Depart-
ment of Defense, as determined by the Secretary of 
Defense, for purposes of display in the defense budg-
et materials.
1431 
(3) The term ‘‘joint military capabilities’’ has 
the meaning given in section 181 of title 10, United 
States Code. 
SEC. 1807. PROJECT SPECTRUM. 
Chapter 19 of title 10, United States Code, is amend-
ed by inserting before section 399 the following new sec-
tion: 
‘‘§ 398b. Project Spectrum 
‘‘(a) PROJECT SPECTRUM; PURPOSE.—There is with-
in the Office of Small Business Programs of the Depart-
ment of Defense a program, to be known as ‘Project Spec-
trum’, the purpose of which is to provide to covered enti-
ties, through an online platform, digital resources and 
services that increase awareness about cybersecurity risks 
and help such covered entities to comply with the cyberse-
curity requirements of the defense acquisition system. 
‘‘(b) ELIGIBILITY.—The Director of the Office of 
Small Business Programs may establish eligibility require-
ments for the receipt by a covered entity of a particular 
resource or service made available through Project Spec-
trum. 
‘‘(c) APPLICATION.—To receive through Project 
Spectrum a resource or service for which the Director has 
established an eligibility requirement under subsection (b), 
a covered entity shall submit to the Director an applica-
1432 
tion at such time, in such form, and containing such infor-
mation as the Director determines appropriate. 
‘‘(d) FUNCTIONS.—In carrying out Project Spec-
trum, the Director shall maintain an online platform 
through which the Director shall make available to each 
covered entity that the Director determines to be eligible 
under subsection (b) with respect to a given resource or 
service, the following: 
‘‘(1) Educational materials regarding cybersecu-
rity, including cybersecurity training courses and 
workforce development training. 
‘‘(2) Guidance regarding best practices for cy-
bersecurity matters, including guidance for devel-
oping internal cybersecurity policies and suggestions 
for procedures for reviewing any violation of such 
policies. 
‘‘(3) Assessments of the cybersecurity practices 
and cybersecurity systems used by a covered entity. 
‘‘(4) A review and feasibility assessment of 
products, software, and data security tools available 
in the commercial marketplace. 
‘‘(5) Cybersecurity services, including dash-
board monitoring services, continuous threat moni-
toring services, software patching services, and patch 
testing services.
1433 
‘‘(6) Cybersecurity readiness checks. 
‘‘(7) A platform for secure data collaboration 
between two or more employees of a covered entity 
and between multiple covered entities. 
‘‘(8) Any additional resources or services, as de-
termined by the Director. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered entity’ means a supplier 
of the Department of Defense that is a small or me-
dium business and registers to access the online 
platform of Project Spectrum. 
‘‘(2) The term ‘defense acquisition system’ has 
the meaning given to such term in section 3001 of 
this title.’’. 
Subtitle B—Requirements Process 
Reform 
SEC. 1811. JOINT REQUIREMENTS COUNCIL. 
(a) AMENDMENT TO NAME AND MISSION OF JOINT 
REQUIREMENTS OVERSIGHT COUNCIL.—Section 181 of 
title 10, United States Code, is amended— 
(1) in the section heading, by striking ‘‘Over-
sight’’; 
(2) in subsection (a), by striking ‘‘Joint Re-
quirements Oversight Council in the Department of 
Defense.’’ and inserting the following: ‘‘Joint Re-
1434 
quirements Council (in this section referred to as the 
‘Council’) in the Department of Defense. The Coun-
cil shall— 
‘‘(1) assist the Chairman of the Joint Chiefs of 
Staff in carrying out the functions described in sec-
tion 153 of this title; and 
‘‘(2) provide recommendations for addressing 
joint operational problems to the Requirements, Ac-
quisition, and Programming Integration Directorate 
established under section 186 of this title (in this 
section referred to as ‘RAPID’).’’; and 
(3) by striking ‘‘Joint Requirements Oversight 
Council’’ each place it appears and inserting ‘‘Joint 
Requirements Council’’. 
(b) DUTIES.—Subsection (b) of such section 181 is 
amended to read as follows: 
‘‘(b) DUTIES.—The Council shall support the objec-
tives established pursuant to section 3102 of this title by 
performing the following duties: 
‘‘(1) Continuously evaluating global trends, ad-
versary capabilities, and emerging threats to inform 
awareness and understanding of joint operational 
problems.
1435 
‘‘(2) In coordination with commanders of com-
batant 
commands, 
compiling, 
refining, 
and 
prioritizing joint operational problems. 
‘‘(3) Identifying and prioritizing gaps in joint 
military capabilities to address joint operational 
problems. 
‘‘(4) Identifying advances in technology and in-
novative concepts of operation that could improve 
the ability of the joint force to address evolving 
threats and maintain the military advantage of the 
United States. 
‘‘(5) Developing a joint capability requirement 
statement that— 
‘‘(A) describes the joint operational prob-
lem to provide necessary context for the joint 
capability requirement; and 
‘‘(B) describes the solution sought in a 
nonprescriptive manner to allow agile and inno-
vative development of joint capability require-
ments to address the joint operational problem. 
‘‘(6) Making the following recommendations to 
RAPID: 
‘‘(A) With respect to a quick action re-
quirement, actions to fulfill such quick action 
requirement, not later than 30 days after re-
1436 
ceipt or identification of such quick action re-
quirement. 
‘‘(B) Actions to fulfill each joint capability 
requirement necessary to address joint oper-
ational problems, not later than 60 days after 
receipt or identification of such a joint oper-
ational problem. 
‘‘(C) Modifications to joint force design 
suitable for addressing joint operational prob-
lems or effectively integrating advancements in 
technology and new concepts of operation. 
‘‘(D) Ways to improve operational effec-
tiveness, increase operational flexibility, or im-
prove interoperability and coordination between 
and among joint military capabilities and the 
military capabilities of allies or partners. 
‘‘(7) Providing notification to Deputy Secretary 
of Defense— 
‘‘(A) upon receipt or identification of a 
quick action requirement; and 
‘‘(B) upon submission of any recommenda-
tion to RAPID.’’. 
(c) COMPOSITION.—Subsection (c) of such section 
181 is amended— 
(1) in paragraph (1)(A)—
1437 
(A) by inserting ‘‘and RAPID’’ before ‘‘for 
making recommendations’’; and 
(B) by striking ‘‘joint performance require-
ments’’ and inserting ‘‘joint capability require-
ments’’; and 
(2) in paragraph (3), by inserting ‘‘and 
RAPID’’ after ‘‘Chairman of the Joint Chiefs of 
Staff’’. 
(d) ADVISORS.—Subsection (d) of such section 181 
is amended— 
(1) in paragraph (2)— 
(A) by inserting ‘‘strongly’’ before ‘‘con-
sider’’; and 
(B) by striking ‘‘its mission under para-
graphs (1) and (2) of subsection (b)’’ and in-
serting ‘‘the duties described in subsection (b)’’; 
and 
(2) in paragraph (3)— 
(A) by striking ‘‘seek, and strongly con-
sider,’’ and inserting ‘‘seek and consider’’; 
(B) by striking ‘‘, in their roles as cus-
tomers of the acquisition system,’’; and 
(C) by striking ‘‘under subsection (b)(2) 
and joint performance requirements pursuant to 
subsection (b)(3)’’.
1438 
(e) RESPONSIBILITY
FOR
CAPABILITY
REQUIRE-
MENTS.—Subsection (e) of such section 181 is amended 
to read as follows: 
‘‘(e) RESPONSIBILITY
FOR CAPABILITY REQUIRE-
MENTS.—The Chief of Staff of an armed force is respon-
sible for the capability requirements for that armed 
force.’’. 
(f) ANALYTIC AND ENGINEERING SUPPORT.—Sub-
section (f) of such section 181 is amended— 
(1) in the subsection heading, by inserting 
‘‘AND ENGINEERING’’ after ‘‘ANALYTIC’’; 
(2) by inserting ‘‘and the Mission Engineering 
and Integration Activity established under section 
1813 of the National Defense Authorization Act for 
Fiscal Year 2026’’ after ‘‘the Office of Cost Assess-
ment and Program Evaluation’’; and 
(3) by striking ‘‘in operations research, systems 
analysis, and cost estimation to the Joint Require-
ments Oversight Council’’. 
(g) AVAILABILITY OF INFORMATION TO CONGRES-
SIONAL DEFENSE COMMITTEES.—Subsection (g) of such 
section 181 is amended— 
(1) in the subsection heading, by striking 
‘‘OVERSIGHT’’; and
1439 
(2) by striking ‘‘oversight information’’ and in-
serting ‘‘information’’. 
(h) DEFINITIONS.—Subsection (h) of such section 
181 is amended to read as follows: 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘capability requirement’ means a 
requirement for a capability that is critical or essen-
tial to address an operational problem. 
‘‘(2) The term ‘joint capability requirement’ 
means a capability requirement, including a capa-
bility requirement related to a requirement for joint 
force interoperability, that is critical or essential to 
address a specific joint operational problem. 
‘‘(3) The term ‘joint military capabilities’ 
means the collective capabilities across the joint 
force, including both joint and force-specific capabili-
ties, that are available to conduct military oper-
ations. 
‘‘(4) The term ‘joint operational problem’ 
means a joint challenge faced by a combatant com-
mand in achieving an assigned military objective and 
may include limitations in capabilities, resources, or 
the ability to effectively and efficiently coordinate 
across the joint force, with another combatant com-
1440 
mand, among joint military capabilities, or with the 
military capabilities of allies or partners. 
‘‘(5) The term ‘operational problem’ means a 
challenge or barrier in an operational environment 
that needs to be overcome to achieve a specific mili-
tary objective. 
‘‘(6) The term ‘quick action requirement’ has 
the meaning given in Department of Defense Direc-
tive 5000.71 titled ‘Rapid Fulfillment of Combatant 
Commander Urgent Operational Needs’ (August 24, 
2012).’’. 
(i) IMPLEMENTATION.—Not later than 30 days after 
the date of the enactment of this Act, the Chairman of 
the Joint Chiefs shall revise policies for the Joint Strategic 
Planning System (established under the Chairman of the 
Joint Chiefs of Staff Instruction 3100.01F), the Manual 
for the Operation of the Joint Capabilities Integration and 
Development System (issued October 30, 2021) and any 
other relevant instructions, policies, or guidance to carry 
out the requirements of this section and the amendments 
made by this section. 
(j) CONFORMING AMENDMENTS.— 
(1) TITLE 10, UNITED STATES CODE.—Title 10, 
United States Code, is amended—
1441 
(A) in section 139a, by striking ‘‘Joint Re-
quirements Oversight Council’’ each place it ap-
pears and inserting ‘‘Joint Requirements Coun-
cil’’; 
(B) in section 153(a)(5)(F), by striking 
‘‘section 181 of this title’’ and inserting ‘‘sec-
tions 181 and 186 of this title’’; 
(C) in section 179(c)(9)— 
(i) by striking ‘‘Joint Requirements 
Oversight Council’’ and inserting ‘‘Joint 
Requirements Council’’; and 
(ii) by striking ‘‘section 181(h)’’ and 
inserting ‘‘section 181’’; 
(D) in section 2926(f)(5)(C), by striking 
‘‘describing’’ and all that follows through ‘‘de-
tails regarding’’ and inserting ‘‘describing de-
tails regarding’’; 
(E) in section 3067(b)(1), by striking 
‘‘Joint Requirements Oversight Council’’ and 
inserting ‘‘Joint Requirements Council’’; 
(F) in section 3136(e)(1)(A)(ii), by strik-
ing ‘‘approved by the Joint Requirements Over-
sight Council and’’ and inserting ‘‘recommended 
for approval by the Requirements, Acquisition,
1442 
and Programming Integration Directorate (es-
tablished under section 186 of this title)’’; 
(G) in section 4202(a)(2)(A), by striking 
‘‘joint military requirement’’ and all that fol-
lows through the period at the end and insert-
ing the following: ‘‘joint capability requirement, 
as determined by the Requirements, Acquisi-
tion, and Programming Integration Directorate 
(established under section 186 of this title)’’; 
(H) by amending section 4251(e)(1) to 
read as follows: 
‘‘(1) The term ‘requirements document’ has the 
meaning given in section 3104(d) of this title.’’; 
(I) in section 4252(b)(9), by striking 
‘‘Joint Requirements Oversight Council’’ and 
inserting ‘‘Joint Requirements Council’’; 
(J) in section 4376— 
(i) in subsection (a), by striking ‘‘, 
after consultation with the Joint Require-
ments Oversight Council regarding pro-
gram requirements,’’; 
(ii) in subsection (b)(2)(B), by strik-
ing ‘‘joint military requirement (as defined 
in section 181(g)(1) of this title) at less
1443 
cost’’ and inserting ‘‘joint capability re-
quirement at less cost’’; and 
(iii) in subsection (c)(3), by striking 
‘‘joint military requirements’’ and inserting 
‘‘joint capability requirements’’; and 
(K) in section 5514(b)(2)(C)(ii), by strik-
ing ‘‘Joint Requirements Oversight Council’’ 
and inserting ‘‘Joint Requirements Council’’. 
(2) OTHER LAWS.— 
(A) Section 902(d) of the National Defense 
Authorization Act for Fiscal Year 2024 (10 
U.S.C. 139a note) is amended— 
(i) by striking ‘‘, performance require-
ments, and joint performance require-
ments’’ and inserting ‘‘or performance re-
quirements’’; and 
(ii) by striking ‘‘Joint Requirements 
Oversight Council to validate such require-
ments’’ and inserting ‘‘Joint Requirements 
Council’’. 
(B) Section 1684(d)(4)(A)(i) of the Na-
tional Defense Authorization Act for Fiscal 
Year 2024 (10 U.S.C. 2271 note) is amended 
by striking ‘‘either approved by, or in develop-
ment for, the Joint Requirements Oversight
1444 
Council’’ and inserting ‘‘in development for con-
sideration or under consideration by the Joint 
Requirements Council’’. 
(C) Section 1686(b)(1) of the National De-
fense Authorization Act for Fiscal Year 2024 
(10 U.S.C. 2224 note) is amended by striking 
‘‘through the Joint Requirements Oversight 
Council’’ and inserting ‘‘in consultation with 
the Requirements, Acquisition, and Program-
ming Integration Directorate (established under 
section 186 of title 10, United States Code)’’. 
(D) Section 1510(b)(2) of the National 
Defense Authorization Act for Fiscal Year 2023 
(10 U.S.C. 113 note) is amended by striking 
‘‘Joint Requirements Oversight Council’’ and 
inserting ‘‘Joint Requirements Council’’. 
(E) Section 915(a)(1) of the National De-
fense Authorization Act for Fiscal Year 2023 
(10 U.S.C. 132 note) is amended by striking 
‘‘Joint Requirements Oversight Council’’ and 
inserting ‘‘Joint Requirements Council’’. 
(F) Section 938(a)(1) of the National De-
fense Authorization Act for Fiscal Year 2014 
(10 U.S.C. 4571 note prec.) is amended by 
striking ‘‘Joint Requirements Oversight Coun-
1445 
cil’’ and inserting ‘‘Joint Requirements Coun-
cil’’. 
(3) REPEALS.—The following provisions of law 
are repealed: 
(A) Section 942 of the National Defense 
Authorization Act for Fiscal Year 2008 (10 
U.S.C. 181 note). 
(B) Section 916 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal 
Year 2001 (10 U.S.C. 181 note). 
(C) Section 105(b) of the Weapon Systems 
Acquisition Reform Act of 2009 (10 U.S.C. 181 
note). 
(D) Section 201 of the Weapon Systems 
Acquisition Reform Act of 2009 (10 U.S.C. 
3102 note). 
SEC. 1812. ESTABLISHMENT OF THE REQUIREMENTS, AC-
QUISITION, AND PROGRAMMING INTEGRA-
TION DIRECTORATE. 
(a) IN GENERAL.—Chapter 7 of title 10, United 
States Code, is amended by inserting after section 185 the 
following new section:
1446 
‘‘§ 186. Requirements, Acquisition, and Programming 
Integration Directorate 
‘‘(a) ESTABLISHMENT.—There is within the Depart-
ment of Defense a Requirements, Acquisition, and Pro-
gramming Integration Directorate (in this section referred 
to as ‘RAPID’). 
‘‘(b) PURPOSES.—RAPID shall— 
‘‘(1) serve as the principal forum within the De-
partment of Defense to inform, coordinate, and 
evaluate solutions to joint operational problems; 
‘‘(2) provide senior oversight, coordination, and 
budget and capability harmonization with respect to 
such matters; and 
‘‘(3) act as an advisory body to the Secretary 
of Defense and the Deputy Secretary of Defense 
with respect to such matters. 
‘‘(c) ORGANIZATION
AND MEMBERSHIP.—RAPID 
shall consist of the following members: 
‘‘(1) The Chairman of the Joint Requirements 
Council and the Director of Cost Assessment and 
Program Evaluation, who shall serve as co-directors 
of RAPID. 
‘‘(2) One member designated by each com-
mander of a combatant command. 
‘‘(3) One member designated by the Chairman 
of the Joint Requirements Council.
1447 
‘‘(4) One member designated by the Director of 
Cost Assessment and Program Evaluation. 
‘‘(5) One member designated by each service 
acquisition executive of a military department. 
‘‘(6) One member designated by the principal 
staff assistant for the Mission Engineering and Inte-
gration Activity (established under section 1813 of 
the National Defense Authorization Act for Fiscal 
Year 2026). 
‘‘(7) One member designated by the executive 
director of the Joint Rapid Acquisition Cell (as de-
scribed in the Department of Defense Directive 
5000.71 titled ‘Rapid Fulfillment of Combatant 
Commander Urgent Operational Needs’ (August 24, 
2012). 
‘‘(8) One member designated by each portfolio 
executive officer or a similar member of the acquisi-
tion workforce responsible for the execution of a rec-
ommendation under consideration by RAPID. 
‘‘(d) RESPONSIBILITIES.—(1) RAPID shall— 
‘‘(A) promptly convene relevant members to as-
sess a proposed joint capability requirement to ad-
dress a joint operational problem by considering, 
with respect to such proposed joint capability re-
quirement—
1448 
‘‘(i) associated resource requirements; 
‘‘(ii) mission engineering and interoper-
ability considerations for integration into joint 
architectures; and 
‘‘(iii) factors related to acquisition and 
sustainment; and 
‘‘(B) provide prioritized recommendations for 
solutions to such joint operational problem to the 
Secretary of Defense and Deputy Secretary of De-
fense. 
‘‘(2) In carrying out paragraph (1), RAPID shall— 
‘‘(A) 
use 
data-driven 
decisionmaking 
to 
prioritize resource allocation; 
‘‘(B) maximize the effective use of resources by 
enabling timely delivery of solutions to address a 
joint operational problem in a manner that provides 
the greatest value for the investment made; 
‘‘(C) enable the adoption and integration of so-
lutions to enhance military effectiveness and respon-
siveness to emerging threats; and 
‘‘(D) in addition to any other considerations re-
quired under this subsection, consider— 
‘‘(i) joint capability requirement state-
ments or other relevant justification materials 
provided by the Joint Requirements Council;
1449 
‘‘(ii) any analysis and recommendations 
provided by the Mission Engineering and Inte-
gration Activity or the Director of Cost Assess-
ment and Program Evaluation relating to re-
source requirements described in paragraph 
(1)(A)(i); 
‘‘(iii) recommendations from relevant serv-
ice acquisition executives or program executive 
officers related to planning and execution of the 
proposed joint capability requirement, including 
budget planning and management, acquisition 
approach, program management, and life-cycle 
management for a proposed joint capability re-
quirement; and 
‘‘(iv) the need to incorporate measure for 
technology protection in certain covered systems 
to enable the use or sale of proposed technology 
solutions to joint operational problems with al-
lies and partner countries in a manner that pro-
tects national security interest while promoting 
international collaboration. 
‘‘(e) RECOMMENDATION.—(1) Not later than 30 days 
after the date of receipt of a recommendation with respect 
to a joint capability requirement for a joint operational 
problem, from the Joint Requirements Council in accord-
1450 
ance with section 181 of this title, RAPID shall submit 
to the Deputy Secretary of Defense a recommendation for 
a solution to the joint operational problem that includes 
the following: 
‘‘(A) A description of the resources needed to 
implement the solution and, as appropriate, re-
sources needed to support the acquisition and 
sustainment of such solution of over the anticipated 
life cycle of the solution. 
‘‘(B) Any recommended actions necessary to en-
able integration of the solution into the joint force 
or to revise joint concepts of operation to best re-
solve the joint operational problem. 
‘‘(C) With respect to a solution for which access 
may be shared with an ally or partner country, rec-
ommended considerations— 
‘‘(i) to be incorporated during the design 
and development phase of the solution; and 
‘‘(ii) to facilitate future production and lo-
gistics support for the solution to the ally or 
partner country. 
‘‘(D) Any necessary changes to policy or guid-
ance to enable effective acquisition, fielding, and em-
ployment of a solution that is a joint military capa-
bility.
1451 
‘‘(E) Any other recommended actions to expedi-
tiously provide the armed forces with the capabilities 
necessary to operate effectively, to address evolving 
threats, and to maintain the military advantage of 
the United States in the most cost-effective manner 
practicable. 
‘‘(2) The co-chairs of RAPID may request an addi-
tional amount of time, not to exceed 30 days, to provide 
a recommendation related to a joint capability require-
ment that is not a quick action requirement to the Deputy 
Secretary of Defense under this subsection. 
‘‘(f) DETERMINATION.—(1) Not later than 30 days 
after receipt of a recommendation under subsection (e), 
the Deputy Secretary of Defense shall issue a memo-
randum that approves, approves with modification, or re-
jects such a recommendation. 
‘‘(2) The Deputy Secretary of Defense shall include 
along with a memorandum that approves or approves with 
modification a recommendation described in paragraph (1) 
specific direction and guidance to the applicable element 
of the Department of Defense to which such recommenda-
tion applies. 
‘‘(3) The Deputy Secretary of Defense shall include 
along with a memorandum that rejects a recommendation 
described in paragraph (1) a specific direction—
1452 
‘‘(A) for alternative action to be taken by the 
applicable element of the Department of Defense to 
which such recommendation applies to address the 
relevant joint operational problem; or 
‘‘(B) to RAPID for further action to address 
the relevant joint operational problem. 
‘‘(g) NOTIFICATION.—If the Deputy Secretary of De-
fense fails to issue a memorandum as required by sub-
section (f) within 90 days after the date on which the 
Joint Requirements Council provides a recommendation to 
address a joint operational problem to the RAPID, the 
Secretary of Defense shall submit to the congressional de-
fense committees a notification of such failure. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The terms ‘joint capability requirement’, 
‘joint military capability’, ‘joint operational problem’, 
and ‘quick action requirement’ have the meanings 
given, respectively, in section 181 of this title. 
‘‘(2) The term ‘relevant member’ means a mem-
ber of RAPID (or a designee) that has a primary in-
terest in, or responsibility for, a proposed joint capa-
bility requirement or quick action requirement under 
assessment by RAPID.’’.
1453 
(b) CONFORMING AMENDMENTS TO DIRECTOR OF 
COST ASSESSMENT AND PROGRAM EVALUATION.—Sec-
tion 139a(d) of title 10, United States Code, is amended— 
(1) by redesignating paragraphs (4) through 
(9) as paragraphs (5) through (10), respectively; 
and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) Analysis and advice for resource discus-
sions relating to joint capability requirements under 
consideration by the Requirements, Acquisition, and 
Programming Integration Directorate pursuant to 
section 186 of this title.’’. 
SEC. 1813. ESTABLISHMENT OF THE MISSION ENGINEER-
ING AND INTEGRATION ACTIVITY. 
(a) ESTABLISHMENT.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish within the Department of Defense 
a Mission Engineering and Integration Activity (in this 
section referred to as ‘‘MEIA’’). 
(b) DESIGNATION.—The Secretary of Defense shall 
designate a principal staff assistant from within the Office 
of the Secretary of Defense whose office shall serve as the 
office of primary responsibility for MEIA.
1454 
(c) DUTIES.—The principal staff assistant des-
ignated under subsection (b) shall have the following du-
ties: 
(1) Lead cross-service activities to develop, 
identify, analyze, and validate integrated technology 
solutions to address joint operational problems. 
(2) Coordinate with the appropriate program 
executive officers to align and implement such activi-
ties. 
(3) Proactively seek and consider feedback of 
the primary users and operators of proposed tech-
nology solutions to address joint operational prob-
lems throughout the implementation of such activi-
ties. 
(4) Upon request, perform analysis for, experi-
ment with, and prototype technology to integrate 
such technology into joint architectures, to use such 
technology, to inform operational concepts, and to 
provide analysis or recommendations regarding the 
use of such technology to the Requirements, Acquisi-
tion, and Programming Integration Directorate, es-
tablished by section 186 of title 10, United States 
Code, as added by this Act (in this section referred 
to as ‘‘RAPID’’).
1455 
(5) Coordinate with commanders of the combat-
ant commands to understand the priorities of com-
manders and support the fielding of integrated tech-
nology solutions to address joint operational prob-
lems. 
(6) Upon request, assist a program executive 
officer in carrying out the responsibilities established 
under section 1732 of title 10, United States Code, 
as added by section 1802 of this Act, by providing 
analysis, recommendations, and engineering assist-
ance in the integration of technology solutions re-
lated to the capabilities for which the program exec-
utive officer is responsible. 
(7) Use existing authorities (including authori-
ties provided in section 4022 of title 10, United 
States Code) to carry out this section. 
(d) IMPLEMENTATION PLAN.— 
(1) PLAN.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense 
committees an implementation plan for MEIA. 
(2) ELEMENTS.—The plan required by para-
graph (1) shall include a description of the following:
1456 
(A) The organizational structure and re-
source requirements associated with the estab-
lishment and operation of MEIA. 
(B) How MEIA will support and inform 
the RAPID in carrying out the requirements of 
section 186 of title 10, United States Code. 
(C) Each budget line item or program ele-
ment that will be associated with the activities 
of MEIA. 
(D) Coordination between MEIA and rel-
evant elements of the Department of Defense 
that are established to identify and support the 
development of, experimentation with, and inte-
gration of technology solutions to address joint 
operational problems for the Department, in-
cluding— 
(i) the Defense Innovation Unit estab-
lished under section 4217 of the title 10, 
United States Code; 
(ii) the Defense Research and Devel-
opment Rapid Innovation Program estab-
lished under section 4061 of such title; 
(iii) a entity of the Department of De-
fense that is a member of the Defense In-
novation Community of Entities estab-
1457 
lished by the Director of the Defense Inno-
vation Unit; 
(iv) the Strategic Capabilities Office; 
and 
(v) recipients of awards under the 
Small Business Innovation Research Pro-
gram or the Small Business Technology 
Transfer Program (as defined in section 9 
of the Small Business Act (15 U.S.C. 
638)). 
(E) How MEIA will coordinate with and 
assist— 
(i) the commanders of combatant 
commands in fielding integrated technology 
solutions to address joint operational prob-
lems under subsection (c)(5); and 
(ii) the program executive officers and 
each Secretary of a military department in 
the integration of technology to enhance 
military effectiveness and responsiveness. 
(F) Any recommendations for changes to 
statute or policy for successful implementation 
of this section. 
(e) ASSESSMENT.—Not later than five years after the 
date of the establishment of MEIA, the Secretary of De-
1458 
fense shall submit to the congressional defense committees 
an assessment of whether MEIA should be modified, made 
permanent, or terminated based on its effectiveness in car-
rying out the requirements of this section. 
(f) JOINT OPERATIONAL PROBLEM DEFINED.—In 
this section, the term ‘‘joint operational problem’’ has the 
meaning given in section 181 of title 10, United States 
Code. 
Subtitle C—Streamlining 
Acquisition Processes 
SEC. 
1821. 
ADJUSTMENTS 
TO 
CERTAIN 
ACQUISITION 
THRESHOLDS. 
(a) MAJOR PROGRAM.— 
(1) TITLE 10.—Section 3041 of title 10, United 
States Code, is amended— 
(A) in subsection (c)(1)— 
(i) in subparagraph (A), by striking 
‘‘$115,000,000 (based on fiscal year 1990 
constant 
dollars)’’ 
and 
inserting 
‘‘$275,000,000 (based on fiscal year 2024 
constant dollars)’’; and 
(ii) in subparagraph (B), by striking 
‘‘$540,000,000 (based on fiscal year 1990 
constant 
dollars)’’ 
and 
inserting
1459 
‘‘$1,300,000,000 (based on fiscal year 
2024 constant dollars)’’; and 
(B) in subsection (d)(1), by striking 
‘‘$750,000 (based on fiscal year 1980 constant 
dollars)’’ and inserting ‘‘$2,000,000 (based on 
fiscal year 2024 constant dollars)’’. 
(2) TITLE 41.—Section 109 of title 41, United 
States Code, is amended— 
(A) in subsection (b)(1)— 
(i) by striking ‘‘$75,000,000 (based 
on fiscal year 1980 constant dollars)’’ and 
inserting ‘‘$275,000,000 (based on fiscal 
year 2024 constant dollars)’’; and 
(ii) by striking ‘‘$300,000,000 (based 
on fiscal year 1980 constant dollars)’’ and 
inserting ‘‘$1,300,000,000 (based on fiscal 
year 2024 constant dollars)’’; and 
(B) in subsection (b)(2), by striking 
‘‘$750,000 (based on fiscal year 1980 constant 
dollars)’’ and inserting ‘‘$2,000,000 (based on 
fiscal year 2024 dollars)’’. 
(b) USE OF PROCEDURES OTHER THAN COMPETI-
TIVE
PROCEDURES.—Section 3204(e)(1) of title 10, 
United States Code, is amended—
1460 
(1) by striking ‘‘$10,000,000’’ each place it ap-
pears and inserting ‘‘$100,000,000’’; 
(2) by striking ‘‘$75,000,000’’ each place it ap-
pears and inserting ‘‘$500,000,000’’; and 
(3) 
in 
subparagraph 
(B)(i), 
by 
striking 
‘‘$500,000’’ and inserting ‘‘$10,000,000’’. 
(c) SIMPLIFIED PROCEDURES
FOR SMALL PUR-
CHASES.— 
(1) TITLE 10.—Section 3205(a)(2) of title 10, 
United States Code, is amended by striking 
‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 
(2) TITLE 41.—Section 1901(a)(2) of title 41, 
United States Code, is amended by striking 
‘‘$5,000,000’’ and inserting ‘‘$10,000,000’’. 
(d) SIMPLIFIED ACQUISITION THRESHOLD.— 
(1) TITLE
10.—Section 3571(a) of title 10, 
United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(c) For purposes of acquisitions by agencies named 
in section 3063 of this title, in the case of any contract 
to be awarded and performed, or purchase to be made, 
in support of a contingency operation or a humanitarian 
or peacekeeping operation, the simplified acquisition 
threshold means an amount equal to two times the amount 
specified for that term in subsection (a).’’.
1461 
(2) TITLE 41.—Section 134 of title 41, United 
States Code, is amended by striking ‘‘$250,000’’ 
and inserting ‘‘$500,000’’. 
(e) MICRO-PURCHASE THRESHOLD.— 
(1) TITLE 10.—Section 3573 of title 10, United 
States Code, is amended by striking ‘‘$10,000’’ and 
inserting ‘‘$25,000’’. 
(2) TITLE 41.—Section 1902(a)(1) of title 41, 
United States Code, is amended by striking 
‘‘$10,000’’ and inserting ‘‘$25,000’’. 
(f) MODIFICATIONS TO SUBMISSIONS OF COST OR 
PRICING DATA.— 
(1) TITLE
10.—Section 3702(a) of title 10, 
United States Code, is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘2018’’ each place it 
appears and inserting ‘‘2026’’; 
(ii) in subparagraph (A), by striking 
‘‘$2,000,000’’ 
and 
inserting 
‘‘$10,000,000’’; and 
(iii) in subparagraph (B), by striking 
‘‘$750,000’’ and inserting ‘‘$2,000,000’’; 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘$2,000,000’’ and inserting ‘‘$10,000,000’’; 
and
1462 
(C) in subparagraph (3)(A), by striking 
‘‘chapter and the price of the subcontract is ex-
pected to exceed $2,000,000’’ and inserting the 
following: ‘‘chapter and— 
‘‘(i) in the case of a prime contract 
entered into after June 30, 2026, the price 
of the subcontract is expected to exceed 
$10,000,000; or 
‘‘(ii) in the case of a prime contract 
entered into on or before June 30, 2026, 
the price of the subcontract is expected to 
exceed $2,000,000.’’. 
(2) TITLE
41.—Section 3502(a) of title 41, 
United States Code, is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘2018’’ each place it 
appears and inserting ‘‘2026’’; 
(ii) in subparagraph (A), by striking 
‘‘$2,000,000’’ 
and 
inserting 
‘‘$10,000,000’’; and 
(iii) in subparagraph (B), by striking 
‘‘$750,000’’ and inserting ‘‘$2,000,000’’; 
(B) in paragraph (2)—
1463 
(i) in subparagraph (A), by striking 
‘‘$2,000,000’’ 
and 
inserting 
‘‘$10,000,000’’; 
(ii) in subparagraph (B), by striking 
‘‘$750,000’’ and inserting ‘‘$2,000,000’’; 
and 
(iii) in subparagraph (C), by striking 
‘‘$750,000’’ and inserting ‘‘$2,000,000’’; 
and 
(C) in paragraph (3), by striking ‘‘chapter 
and—’’ and all that follows and inserting the 
following: ‘‘chapter and— 
‘‘(i) in the case of a prime contract 
entered into after June 30, 2026, the price 
of the subcontract is expected to exceed 
$10,000,000; or 
‘‘(ii) in the case of a prime contract 
entered into on or before June 30, 2026, 
the price of the subcontract is expected to 
exceed $2,000,000.’’. 
(g) MAJOR
DEFENSE
ACQUISITION
PROGRAMS; 
DEFINITIONS; EXCEPTIONS.—Section 4201(a)(2) of title 
10, United States Code, is amended— 
(1) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$300,000,000 (based on fiscal year 1990 constant
1464 
dollars)’’ and inserting ‘‘$1,000,000,000 (based on 
fiscal year 2024 constant dollars)’’; and 
(2) 
in 
subparagraph 
(B), 
by 
striking 
‘‘$1,800,000,000 (based on fiscal year 1990 con-
stant dollars)’’ and inserting ‘‘$4,500,000,000 
(based on fiscal year 2024 constant dollars)’’. 
SEC. 1822. CLARIFICATION OF CONDITIONS FOR PAYMENTS 
FOR COMMERCIAL PRODUCTS AND COMMER-
CIAL SERVICES. 
(a) TITLE 10.—Section 3805 of title 10, United 
States Code, is amended— 
(1) in subsection (d)— 
(A) by striking ‘‘The conditions’’ and in-
serting ‘‘(1) The conditions’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) For the purposes of section 3803 of this title, 
a payment for covered services acquired through a com-
mercially utilized acquisition strategy shall not be consid-
ered an advance payment made under section 3801 of this 
title.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(e) DEFINITIONS.—In this section:
1465 
‘‘(1) The term ‘commercially utilized acquisition 
strategy’ means an acquisition of a service by the 
Government under terms and conditions that— 
‘‘(A) are similar to the terms and condi-
tions under which such service is available to 
the public; and 
‘‘(B) provide such service as a consump-
tion-based solution or under a technology sub-
scription model or other model based on pre-
determined pricing for access to such service. 
‘‘(2) The term ‘covered service’ means a com-
mercial service that includes access to or use of any 
combination of hardware, equipment, software, 
labor, or services, including access to commercial 
satellite data and associated services, that is inte-
grated to provide a capability.’’. 
(b) TITLE 31.—Section 3324(d) of title 31, United 
States Code, is amended— 
(1) in paragraph (1)(C), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in paragraph (2)— 
(A) by inserting ‘‘or commercially available 
content’’ after ‘‘publication’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and
1466 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) charges for information and communica-
tions technology subscriptions, reservations, or ten-
ancy, including cloud environments, for which the 
procuring agency defines appropriate access and se-
curity standards.’’. 
SEC. 1823. ALTERNATIVE CAPABILITY-BASED PRICING. 
Chapter 287 of title 10, United States Code, is 
amended by adding at the end the following new section: 
‘‘§ 3906. Alternative capability-based pricing 
‘‘(a) IN GENERAL.—Except as provided by subsection 
(b), the head of an agency may use alternative capability- 
based analysis for the acquisition of a commercial solution 
to determine whether the price for a commercial solution 
is fair and reasonable based on the value to the Govern-
ment as determined under such analysis. 
‘‘(b) EXCEPTION.—Subsection (a) does not apply 
with respect to the acquisition of a commercial solution 
under a subcontract. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘alternative capability-based 
analysis’ means an analysis of the value to the Gov-
ernment of a commercial solution that determines
1467 
such value based on one or more of the following cri-
teria: 
‘‘(A) The suitability of the commercial so-
lution for the particular purpose for which the 
Government would acquire such commercial so-
lution. 
‘‘(B) The benefits obtained by the Govern-
ment as a result of improvements in capability, 
effectiveness, efficiency, process, or speed to de-
livery provided by such commercial solution. 
‘‘(C) The estimated total cost avoidance re-
sulting from the acquisition and use of such 
commercial solution, including the cost avoid-
ance resulting from reductions to operations, 
sustainment, or risks to mission by replacing 
fielded capabilities with such commercial solu-
tion. 
‘‘(D) Input from the intended end users of 
such commercial solution on the potential value 
of the improvements to capabilities or processes 
provided by such commercial solution. 
‘‘(2) The term ‘commercial solution’ means a 
product or service, including an integrated combina-
tion of products, services, or products and services—
1468 
‘‘(A) that is sold, leased, or licensed in the 
commercial marketplace, or offered for sale, 
lease, or license in the commercial marketplace; 
and 
‘‘(B) the provider of which contempora-
neously offers such solution or a solution that 
is similar to such solution to the general public 
or public entities, including State and local gov-
ernments and foreign governments, under terms 
and conditions that are similar to the terms and 
conditions under which such solution is offered 
to the Federal Government.’’. 
SEC. 1824. MATTERS RELATED TO COST ACCOUNTING 
STANDARDS. 
(a) REDUCTION OF CAS COMPLIANCE.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
of Defense, in consultation with Cost Accounting 
Standards Board established under section 1501 of 
title 41, United States Code, shall— 
(A) identify actions necessary to streamline 
requirements for compliance with the cost ac-
counting standards established under section 
1502 of title 41, United States Code (in this 
section referred to as ‘‘CAS’’), in the perform-
1469 
ance of a contract with the Department of De-
fense; and 
(B) reduce or eliminate such requirements 
under the circumstances described in paragraph 
(2) for contracts entered into after the date 
that is 180 days after the date of the enact-
ment of this Act. 
(2) CIRCUMSTANCES
DESCRIBED.—The cir-
cumstances described in this paragraph are as fol-
lows: 
(A) With respect to an action to eliminate 
compliance with CAS, if reliance on a similar 
requirement under generally accepted account-
ing principles (in this section referred to as 
‘‘GAAP’’) would achieve, to the maximum ex-
tent possible, the use of commercial accounting 
standards and systems with respect to such 
elimination without bias or prejudice to parties 
to a contract. 
(B) If other existing requirements in guid-
ance or regulation will sufficiently protect the 
interests of the Secretary of Defense in the 
oversight of cost contracts. 
(C) If such requirement is no longer nec-
essary or appropriate.
1470 
(b) CHANGES TO APPLICABILITY OF FULL CAS COV-
ERAGE.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Ad-
ministrator for Federal Procurement Policy shall re-
vise the rules and procedures prescribed pursuant to 
subsections (a) and (b) of section 1502 of title 41, 
United States Code, to the extent necessary to in-
crease 
the 
thresholds 
established 
in 
section 
9903.201-2 of title 48, Code of Federal Regulation, 
from $50,000,000 to $100,000,000. 
(2) DEPARTMENT
OF
DEFENSE.—Not later 
than 120 days after the date of the enactment of 
this Act, the Secretary shall update the Department 
of Defense Supplement to the Federal Acquisition 
Regulation to require full compliance with CAS only 
for an entity or subsidiary of an entity that— 
(A) received a single contract award under 
CAS with a value equal to or greater than 
$100,000,000; or 
(B) received contracts during the cost ac-
counting period that ended preceding the date 
of the report with an aggregate value equal to 
or greater than $100,000,000.
1471 
(c) AMENDMENTS
TO COST ACCOUNTING STAND-
ARDS BOARD.— 
(1) ORGANIZATION.—Subsection (a) of section 
1501 of title 41, United States Code, is amended by 
striking ‘‘Office of Federal Procurement Policy’’ and 
inserting ‘‘Office of Management and Budget’’. 
(2) MEMBERSHIP.—Subsection (b) of such sec-
tion 1501 is amended— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) MEMBERS, 
CHAIRMAN, 
AND
APPOINT-
MENT.—The Board shall consist of 5 voting mem-
bers and 2 nonvoting members. 
‘‘(A) 
VOTING
MEMBERS.—One 
voting 
member is the Administrator of Federal Pro-
curement Policy, who serves as Chairman. The 
other 4 members, all of whom shall have experi-
ence in Federal Government contract cost ac-
counting, are as follows: 
‘‘(i) 2 representatives of the Federal 
Government, each of whom has substantial 
experience in administering and managing 
covered contracts— 
‘‘(I) one of whom is a representa-
tive of the Department of Defense ap-
1472 
pointed by the Secretary of Defense; 
and 
‘‘(II) one of whom is an officer or 
employee of the General Services Ad-
ministration appointed by the Admin-
istrator of General Services. 
‘‘(ii) 2 individuals from the private 
sector, each of whom is appointed by the 
Director of the Office of Management and 
Budget— 
‘‘(I) one of whom is a senior em-
ployee or retired senior employee of a 
Government contractor with substan-
tial experience in the private sector in-
volving administration and manage-
ment of covered contracts; and 
‘‘(II) one member of the account-
ing profession, with substantial expe-
rience as an accountant. 
‘‘(B) NONVOTING MEMBERS.—The 2 non-
voting members of the Board shall be appointed 
as follows: 
‘‘(i) 1 individual who is a senior em-
ployee of the Government Accountability 
Office with substantial experience in con-
1473 
tracting and national security acquisitions, 
appointed by the Comptroller General of 
the United States. 
‘‘(ii) 1 individual from academia, a 
nonprofit organization, or a private entity 
with substantial experience in establishing 
financial accounting and reporting stand-
ards in compliance with Generally Accept-
ed Accounting Principles, appointed by the 
Director of the Office of Management and 
Budget.’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A), by inserting 
‘‘, which may be extended for an additional 
4-year period by the individual who ap-
pointed such member under paragraph 
(1)’’ after ‘‘4 years’’; and 
(ii) in subparagraph (B), by striking 
‘‘paragraph (1)(A)’’ and inserting ‘‘para-
graph (1)(A)(i)’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4) INELIGIBILITY.—Beginning on January 1, 
2028, an individual who is a member of an audit en-
tity of an executive agency (excluding an audit entity
1474 
of the Government Accountability Office) is not eli-
gible to serve as a member of the Board.’’. 
(3) DUTIES.—Subsection (c) of such section 
1501 is amended— 
(A) in paragraph (2)— 
(i) by striking ‘‘within one year’’ and 
all that follows through ‘‘conform such 
standards’’ and inserting the following: 
‘‘not later than 180 days after the date of 
enactment of this paragraph, and bienni-
ally thereafter, review any cost accounting 
standards established under section 1502 
of this title and eliminate or conform such 
standards’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in paragraph (3), by striking ‘‘dis-
putes.’’ and inserting the following: ‘‘disputes, 
and take necessary action to clarify or improve 
such standards if misinterpretation or lack of 
clarity in a standard was a primary component 
of such dispute; and’’; and 
(C) by adding at the end the following: 
‘‘(4) ensure that any action taken pursuant to 
paragraph (3) is not taken solely for the purpose of
1475 
tailoring such standard to favor a party in the dis-
pute.’’. 
(4) REPORT.—Subsection (e) of such section 
1501 is amended— 
(A) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) a summary of rulemaking activities related 
to any changes to such standards and any associated 
timelines for such activities.’’. 
(5) SENIOR
STAFF.—Subsection (f)(1)(B) of 
such section 1501 is amended— 
(A) by striking ‘‘may appoint’’ and insert-
ing ‘‘shall appoint’’; and 
(B) by striking ‘‘two’’ and inserting ‘‘not 
less than four’’. 
(6) COVERED CONTRACT DEFINED.—Such sec-
tion 1501 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(j) COVERED CONTRACT DEFINED.—In this section, 
the term ‘covered contract’ means a contract that is sub-
1476 
ject to the cost accounting standards issued pursuant to 
section 1502 of title 41, United States Code,’’. 
(7) DEADLINE.—Not later than 90 days after 
the date of the enactment of this Act, the Director 
of the Office of Management and Budget, the Sec-
retary of Defense, the Administrator of General 
Services, and the Comptroller General of the United 
States shall implement the amendments made by 
this subsection, including making the appointments 
under section 1501(b) of title 41, United States 
Code, as amended by this subsection. 
(d) AMENDMENT TO MANDATORY USE OF COST AC-
COUNTING STANDARDS.— 
(1) IN GENERAL.—Section 1502(b)(1) of title 
41, United States Code, is amended— 
(A) in subparagraph (B), by striking 
‘‘amount set forth in section 3702(a)(1)(A) of 
title 10 as the amount is’’ and inserting 
‘‘$10,000,000, as’’; and 
(B) in subparagraph (C)— 
(i) in clause (ii), by inserting ‘‘or’’ at 
the end; 
(ii) in clause (iii), by striking ‘‘; or’’ 
and inserting a period; and 
(iii) by striking clause (iv).
1477 
(2) REGULATIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Ad-
ministrator for Federal Procurement Policy shall 
issue such regulations as are necessary to implement 
the amendments made by this subsection. 
SEC. 1825. REVIEW OF COMMERCIAL BUYING PRACTICES. 
(a) REVIEW REQUIRED.— 
(1) IN
GENERAL.—Not later than 120 days 
after the enactment of this Act, the Secretary of De-
fense shall carry out a comprehensive review of the 
approach of the Department of Defense to acquiring 
commercial products and commercial services and 
the implementation of the requirements of the Fed-
eral Acquisition Streamlining Act of 1994 (Public 
Law 103-355) by the Department. 
(2) REVIEW REQUIREMENTS.—The review re-
quired by paragraph (1) shall include an assessment 
of each of the following as they relate to the ap-
proach of the Department of Defense to acquiring 
commercial products and commercial services: 
(A) The policies, procedures, guidance, and 
instructions of the Department of Defense. 
(B) The extent to which contracts entered 
into by the Department of Defense for the ac-
quisition of commercial products or commercial
1478 
services include requirements or other provi-
sions that should not apply to the acquisition of 
a commercial product or commercial service and 
the extent to which such requirements or other 
provisions are included in subcontracts under 
such contracts. 
(C) Training curricula, educational mate-
rials, and associated activities of the Depart-
ment of Defense related to acquiring commer-
cial products and commercial services, including 
such curricula, materials, and activities that 
pertain to the determination of a product or 
service as a commercial product or commercial 
service and the congressional intent that the 
definitions of the terms ‘‘commercial product’’ 
and ‘‘commercial service’’ should be applied 
broadly. 
(D) Audit and oversight policies and prac-
tices of the Department of Defense. 
(E) Incentives that discourage the acquisi-
tion workforce from acquiring commercial prod-
ucts or commercial services. 
(F) The process by which the Department 
of Defense develops and issues regulations re-
lated to the acquisition of commercial products
1479 
or commercial services, including delays in rule-
making and the resulting delays in the imple-
mentation of policies intended to improve or 
streamline the acquisition of commercial prod-
ucts or commercial services. 
(G) Requirements in solicitations or con-
tracts of the Department of Defense requiring 
the use of military specifications or standards 
when applicable commercial specifications or 
standards were available that could have meet 
the needs of the Department served by such 
military specifications or standards. 
(H) The process by which the Department 
of Defense evaluates past performance, includ-
ing performance under Federal, State, and local 
government and private contracts (as described 
in section 15.305(a)(2)(ii) of the Federal Acqui-
sition Regulation), in the acquisition of com-
mercial products or commercial services. 
(b) REPORT.—Not later than 180 days after the en-
actment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report that— 
(1) describes the findings of the review required 
by subsection (a)(1);
1480 
(2) describes the corrective actions taken by the 
Secretary to address the issues identified pursuant 
to such review, including any findings of noncompli-
ance by the Department of Defense with the require-
ments of the Federal Acquisition Streamlining Act 
of 1994 (Public Law 103–355) or any other statu-
tory or regulatory requirements related to advancing 
and enabling the procurement of commercial prod-
ucts and commercial services; and 
(3) includes any recommendations of the Sec-
retary on actions that Congress may take to better 
enable to the Department of Defense to take advan-
tage of the benefits of acquiring commercial prod-
ucts and commercial services. 
(c) CLARIFYING AMENDMENTS.— 
(1) TREATMENT
OF
MAJOR
WEAPON
SYS-
TEMS.—Section 3455 of title 10, United States 
Code, is amended— 
(A) in subsection (c)(1), by striking ‘‘may’’ 
and inserting ‘‘shall’’; 
(B) by amending subsection (d) to read as 
follows: 
‘‘(d) APPLICABILITY OF TRUTHFUL COST OR PRIC-
ING DATA REQUIREMENTS.—A product treated as a com-
mercial product or purchased under procedures estab-
1481 
lished for the procurement of commercial products under 
subsection (a) shall be treated as a commercial product 
for the purposes of chapter 271 of this title.’’; and 
(C) in subsection (e), by striking ‘‘Deputy 
Secretary of Defense’’ and inserting ‘‘Under 
Secretary of Defense for Acquisition and 
Sustainment’’. 
(2) COST OR PRICING DATA EXCEPTIONS.—Sec-
tion 3703(a)(1) of title 10, United States Code, is 
amended by amending subparagraph (A) to read as 
follows: 
‘‘(A) adequate price competition; or’’. 
Subtitle D—Matters Relating to 
Commercial Innovation 
SEC. 1831. AMENDMENT TO OTHER TRANSACTION AUTHOR-
ITY. 
(a) IN GENERAL.—Section 4022 of title 10, United 
States Code, is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (A), by striking 
‘‘agency that’’ and all that follows through ‘‘the 
use’’ and inserting ‘‘agency that the use’’; 
(B) in subparagraph (B)— 
(i) in clause (i), by striking ‘‘writing 
that’’ and all that follows through ‘‘the
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(B) by redesignating paragraphs (2) and 
(3) as paragraphs (1) and (2), respectively, and 
adjusting the margins accordingly; and 
(C) in paragraph (1), as so redesignated— 
(i) by striking ‘‘subsection (d)’’ and 
inserting ‘‘subsection (c)’’; 
(ii) by striking ‘‘March 15 of each 
odd-numbered year’’ and inserting ‘‘45 
days after each date on which a budget for 
an odd-numbered fiscal year is submitted 
to Congress’’; and 
(iii) in paragraph (2), as so redesig-
nated, by striking ‘‘summaries and re-
ports’’ and inserting ‘‘report’’; 
(2) by striking subsection (c); 
(3) by redesignating subsections (d) through (f) 
as subsections (c) through (e), respectively; and 
(4) in subsections (c) and (d), as so redesig-
nated, by striking ‘‘subsection (b)(2)’’ each place it 
appears and inserting ‘‘subsection (b)(1)’’. 
SEC. 3122. ASSESSMENT OF THE NATIONAL NUCLEAR SECU-
RITY ADMINISTRATION SPENT FUEL HAN-
DLING RECAPITALIZATION PROJECT. 
(a) IN GENERAL.—The Deputy Administrator for 
Naval Reactors of the National Nuclear Security Adminis-