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vide to the Committees on Armed Services of the House 
of Representatives and the Senate a briefing on the results 
of the study under subsection (a). 
SEC. 729. TICK-BORNE DISEASES. 
Using funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2018 for 
the Defense Health program, the Secretary of Defense 
may authorize grants to medical researchers and univer-
sities to support testing ticks for the purpose of improving 
the detection and diagnosis of tick-borne diseases. 
SEC. 730. REPORT. 
For each of the fiscal years 2018 through 2021, the 
Secretary of Defense shall submit to Congress a report 
on the Department of Defense’s— 
(1) activities and programs with respect to in-
fectious disease; 
(2) priority areas with respect to infectious dis-
ease; and 
(3) current policy and planning documents with 
respect to infectious disease. 
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SEC. 731. PROVISION OF SUPPORT BY DEPARTMENT OF DE-
FENSE TO DEPARTMENT OF VETERANS AF-
FAIRS 
REGARDING 
ELECTRONIC 
HEALTH 
RECORD SYSTEM. 
(a) SUPPORT.—The Secretary of Defense may sup-
port the Secretary of Veterans Affairs, to the extent the 
Secretaries jointly consider feasible and advisable, in the 
development and implementation of an electronic health 
record system that— 
(1) is derivative of the Military Health System 
Genesis record currently being developed and imple-
mented by the Secretary of Defense; and 
(2) achieves complete interoperability with the 
Military Health System Genesis. 
(b) ANNUAL REVIEW.—The Secretary of Defense and 
the Secretary Veterans Affairs shall jointly conduct an an-
nual review of the efforts undertaken by the Secretaries 
to achieve complete interoperability between the electronic 
health record of the Department of Veterans Affairs and 
the Military Health System Genesis. 
(c) ANNUAL REPORT.— 
(1) REPORTS.—Not later than 60 days after 
completing each annual review under subsection (b), 
the Secretary of Defense and the Secretary of Vet-
erans Affairs shall jointly submit to the Committees 
on Armed Services and the Committees on Veterans’ 
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Affairs of the Senate and the House of Representa-
tives a report on the review. 
(2) ELEMENTS.—Each report under paragraph 
(1) shall include an assessment of the following: 
(A) Milestones reached as part of the 
schedule of development and acquisition as de-
veloped by the Department of Defense and the 
Department of Veterans Affairs. 
(B) Costs associated with development and 
implementation. 
(C) Actions, if any, of the Secretary of De-
fense in supporting the Secretary of Veterans 
Affairs pursuant to subsection (a) with respect 
to the development and implementation of an 
electronic health record system and in achieving 
complete interoperability with the Military 
Health System Genesis. 
(D) Status of the adoption of the national 
standards and architectural requirements iden-
tified by the Interagency Program Office of the 
Departments and in collaboration with the Of-
fice of the National Coordinator for Health In-
formation Technology of the Department of 
Health and Human Services. 
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(d) TERMINATION.—The requirements under sub-
section (b) and (c) shall terminate on the date on which 
the Secretary of Defense and the Secretary of Veterans 
Affairs jointly certify to the Committees on Armed Serv-
ices and the Committees on Veterans’ Affairs of the Sen-
ate and the House of Representatives that the electronic 
health records of both the Department of Defense and the 
Department of Veterans Affairs are completely interoper-
able. 
(e) INTEROPERABILITY DEFINED.—In this section, 
the term ‘‘interoperability’’ refers to the ability of different 
electronic health records systems or software to meaning-
fully exchange information in real time and provide useful 
results to one or more systems. 
SEC. 732. INCREASED COLLABORATION WITH NIH TO COM-
BAT TRIPLE NEGATIVE BREAST CANCER. 
The Office of Health of the Department of Defense 
shall work in collaboration with the National Institutes of 
Health to— 
(1) identify specific genetic and molecular tar-
gets and biomarkers for triple negative breast can-
cer; and 
(2) provide information useful in biomarker se-
lection, drug discovery, and clinical trials design that 
will enable both— 
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(A) triple negative breast cancer patients 
to be identified earlier in the progression of 
their disease; and 
(B) the development of multiple targeted 
therapies for the disease. 
SEC. 733. ENCOURAGING TRANSITION OF MILITARY MED-
ICAL PROFESSIONALS INTO EMPLOYMENT 
WITH VETERANS HEALTH ADMINISTRATION. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish a program to encourage an individual who serves 
in the Armed Forces with a military occupational specialty 
relating to the provision of health care to seek employment 
with the Veterans Health Administration when the indi-
vidual has been discharged or released from service in the 
Armed Forces or is contemplating separating from such 
service. 
(b) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to— 
(1) create any additional authority not other-
wise provided in law to convert a former member of 
the Armed Services to an employee of the Veterans 
Health Administration; or 
(2) circumvent any existing requirement relat-
ing to a detail, reassignment, or other transfer of 
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such a former member to the Veterans Health Ad-
ministration. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Defense Acquisition 
Streamlining and Transparency 
PART I—ACQUISITION SYSTEM STREAMLINING 
SEC. 801. PROCUREMENT THROUGH ONLINE MARKET-
PLACES. 
(a) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator of General Services shall establish a program to 
procure commercial products through online marketplaces 
for purposes of expediting procurement and ensuring rea-
sonable pricing of commercial products. The Adminis-
trator shall carry out the program in accordance with this 
section, through more than one contract with more than 
one online marketplace provider, and shall design the pro-
gram to enable Government-wide use of such market-
places. 
(b) USE
OF PROGRAM
BY SECRETARY
OF DE-
FENSE.—The Secretary of Defense shall purchase, as ap-
propriate, commercial products for the Department of De-
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fense using the program established pursuant to sub-
section (a). 
(c) CRITERIA FOR ONLINE MARKETPLACES.—The 
Administrator shall ensure that an online marketplace 
used under the program established pursuant to sub-
section (a)— 
(1) is used widely in the private sector, includ-
ing in business-to-business e-commerce; 
(2) provides dynamic selection, in which sup-
pliers and products may be frequently updated, and 
dynamic pricing, in which product prices may be fre-
quently updated; 
(3) enables offers from multiple suppliers on 
the same or similar products to be sorted or filtered 
based on product and shipping price, delivery date, 
and reviews of suppliers or products; 
(4) does not feature or prioritize a product of 
a supplier based on any compensation or fee paid to 
the online marketplace by the supplier that is exclu-
sively for such featuring or prioritization on the on-
line marketplace; 
(5) provides the capability for procurement 
oversight controls, including spending limits, order 
approval, and order tracking; 
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(6) provides consolidated invoicing, payment, 
and customer service functions for all transactions; 
(7) satisfies requirements for supplier and prod-
uct screening in subsection (d); and 
(8) collects information necessary to fulfill the 
information requirements in subsection (h). 
(d) SUPPLIER AND PRODUCT SCREENING.—The Ad-
ministrator shall— 
(1) provide or ensure electronic availability to 
an online marketplace provider awarded a contract 
pursuant to subsection (a), no less frequently than 
the first day of each month— 
(A) the list of suspended and debarred 
contractors contained in the System of Award 
Management maintained by the General Serv-
ices Administration, or any successor system; 
(B) a list of suppliers, by product, that 
certify compliance with the requirements of sec-
tion 2533a or 2533b of title 10, United States 
Code; 
(C) a list of suppliers, by product, that 
comply with the requirements of, or are subject 
to an exception under, chapter 83 of title 41, 
United States Code; 
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(D) a list of suppliers, by product, with re-
spect to which the President has issued a waiv-
er under section 301 of the Trade Agreements 
Act of 1979 (19 U.S.C. 2511); 
(E) a list of products, by supplier, that are 
suitable for the Federal Government to procure 
pursuant to section 2410n of title 10, United 
States Code, or section 8503 of title 41, United 
States Code; and 
(F) a list of suppliers, by product, that are 
small business concerns; 
(2) conduct reviews of suppliers to establish the 
lists required under paragraph (1); 
(3) ensure that an online marketplace used 
under the program established pursuant to sub-
section (a) provides the ability to search suppliers 
and products and identify such suppliers and prod-
ucts as authorized or not authorized for purchase 
during the procurement and order approval process 
based on the most recent lists provided pursuant to 
paragraph (1). 
(e) RELATIONSHIP
TO
OTHER
PROVISIONS
OF 
LAW.—(1) Notwithstanding any other provision of law, a 
procurement of a product made through an online market-
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place under the program established pursuant to sub-
section (a)— 
(A) is deemed to satisfy requirements for full 
and open competition pursuant to section 2304 of 
title 10, United States Code, and section 3301 of 
title 41, United States Code, if there are offers from 
two or more suppliers of such a product or similar 
product with substantially the same physical, func-
tional, or performance characteristics on the online 
marketplace; and 
(B) is deemed to be an award of a prime con-
tract for purposes of the goals established under sec-
tion 15(g) of the Small Business Act (15 U.S.C. 
644(g)), if the purchase is from a supplier that is 
a small business concern. 
(2) Nothing in this subsection shall be construed as 
limiting the authority of a department or agency to re-
strict competition to small business concerns. 
(f) REQUIREMENT TO USE STANDARD TERMS AND 
CONDITIONS
OF
ONLINE
MARKETPLACES.—Notwith-
standing any other provision of law, a procurement of a 
product through a commercial online marketplace used 
under the program established pursuant to subsection (a) 
shall be made under the standard terms and conditions 
of the marketplace relating to purchasing on the market-
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place, and the Administrator shall not require an online 
marketplace to modify its standard terms and conditions 
as a condition of receiving a contract pursuant to sub-
section (a). 
(g) PROCEDURES FOR AWARD OF CONTRACT.—Not-
withstanding section 2304 of title 10, United States Code, 
or any other provision of law, the award of a contract to 
an online marketplace provider pursuant to subsection (a) 
may be made without the use of full and open competition. 
(h) ORDER INFORMATION.— 
(1) IN GENERAL.—The Administrator shall re-
quire each online marketplace provider awarded a 
contract pursuant to subsection (a) to provide to the 
General Services Administration, not less frequently 
than the first day of each month, the ability to elec-
tronically access the following information with re-
spect to each product ordered during the preceding 
month: 
(A) The product name and description. 
(B) The date and time of the order. 
(C) The product price. 
(D) The person or entity within the de-
partment or agency that purchased the product 
and, if appropriate, the official who authorized 
the purchase. 
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(E) The delivery address specified in the 
order for the product. 
(F) The number of suppliers that offered 
the same product or a similar product with sub-
stantially the same physical, functional, or per-
formance characteristics on the same date and 
time that the product was ordered. 
(2) DATA
SYSTEM.—The Administrator shall 
ensure that order information listed in paragraph 
(1) is entered into the Federal Procurement Data 
System described in section 1122 of title 41, United 
States Code. 
(i) LIMITATION ON INFORMATION DISCLOSURE.—In 
any contract awarded to an online marketplace provider 
pursuant to subsection (a), the Administrator shall require 
that the provider agree not to sell or otherwise make avail-
able to any third party any of the information listed in 
subsection (h)(1) in a manner that identifies the Federal 
Government, or any of its departments or agencies, as the 
purchaser, except with written consent of the Adminis-
trator. 
(j) COMPTROLLER GENERAL REVIEW
OF SMALL 
BUSINESS PARTICIPATION.— 
(1) REPORT
REQUIREMENT.—Not later than 
three years after a contract with an online market-
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place provider is awarded pursuant to subsection 
(a), the Comptroller General of the United States 
shall submit to the committees listed in paragraph 
(2) a report on small business participation in the 
program established pursuant to subsection (a). The 
report shall include— 
(A) the number of small business concerns 
that have registered or that have sold goods 
with at least one online marketplace provider; 
(B) trends in small business participation; 
(C) the effect, if any, of the program on 
the ability of agencies to meet goals established 
under section 15(g) of the Small Business Act 
(15 U.S.C. 644(g)); and 
(D) a discussion of the limitations, if any, 
to small business participation in the program. 
(2) COMMITTEES.—The committees listed in 
this paragraph are the following: 
(A) The Committees on Armed Services of 
the Senate and House of Representatives. 
(B) The Committee on Homeland Security 
and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Re-
form of the House of Representatives. 
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(C) The Committee on Small Business and 
Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Rep-
resentatives. 
(k) DEFINITIONS.—In this section: 
(1) ONLINE
MARKETPLACE
PROVIDER.—The 
term ‘‘online marketplace provider’’ means a com-
mercial, non-Government entity providing an online 
portal for the purchase of commercial products ag-
gregated, distributed, sold, or manufactured by such 
entity. The term does not include an online portal 
managed by the Government for, or predominantly 
for use by, Government agencies. 
(2) COMMERCIAL PRODUCT.—The term ‘‘com-
mercial product’’ means a commercially available off- 
the-shelf item, as defined in section 104 of title 41, 
United States Code, except the term does not in-
clude services. 
(3) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
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SEC. 802. PERFORMANCE OF INCURRED COST AUDITS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended by inserting after section 2313a 
the following new section: 
‘‘§ 2313b. Performance of incurred cost audits 
‘‘(a) COMPLIANCE WITH STANDARDS OF RISK AND 
MATERIALITY.—Not later than October 1, 2020, the Sec-
retary of Defense shall comply with commercially accepted 
standards of risk and materiality in the performance of 
each incurred cost audit of costs associated with a contract 
of the Department of Defense. 
‘‘(b) CONDITIONS FOR THE USE OF QUALIFIED PRI-
VATE AUDITORS
TO PERFORM INCURRED COST AU-
DITS.—(1) The Secretary shall use a qualified private 
auditor to perform a sufficient number of incurred cost 
audits of contracts of the Department of Defense in order 
to ensure that— 
‘‘(A) any backlog of incurred cost audits of the 
Defense Contract Audit Agency is eliminated by Oc-
tober 1, 2020; 
‘‘(B) incurred cost audits are completed not 
later than one year after the date of receipt of a 
qualified incurred cost submission; 
‘‘(C) sufficient private sector capacity exists to 
meet the current and future needs of the Depart-
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ment of Defense for the performance of incurred 
cost audits; 
‘‘(D) qualified private auditors are used to per-
form a substantial number of incurred cost audits on 
an ongoing basis to improve the efficiency and effec-
tiveness of the performance of incurred cost audits; 
‘‘(E) the Defense Contract Audit Agency is able 
to devote ample resources to high priority audits; 
and 
‘‘(F) multi-year auditing is conducted only to 
address outstanding incurred cost audits for which a 
qualified incurred cost submission was submitted to 
the Defense Contract Audit Agency more than 12 
months before the date of the enactment of this sec-
tion. 
‘‘(2)(A) Not later than October 1, 2018, the 
Secretary of Defense shall submit to the congres-
sional defense committees a copy of the acquisition 
plan required by the Federal Acquisition Regulation 
for the task order contract to be awarded under sub-
paragraph (B). Such plan shall also include— 
‘‘(i) a description of the incurred cost au-
dits that the Secretary determines are appro-
priate to be conducted by qualified private audi-
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tors, including the approximate number and 
dollar value of such incurred cost audits; and 
‘‘(ii) an estimate of the number and dollar 
value of incurred cost audits to be conducted by 
qualified private auditors for each of the fiscal 
years 2019 through 2025 necessary to meet the 
requirements of paragraph (1). 
‘‘(B) Not later than October 1, 2019, the Sec-
retary of Defense or a Federal department or agency 
authorized by the Secretary shall award an indefinite 
delivery-indefinite quantity task order contract to 
two or more qualified private auditors to perform in-
curred cost audits of costs associated with contracts 
of the Department of Defense. 
‘‘(C) The Defense Contract Management Agen-
cy, a contract administration office of a military de-
partment, or an authorized entity outside of the De-
partment of Defense shall issue a task order to per-
form an incurred cost audit to a qualified private 
auditor under a task order contract awarded under 
subparagraph (B), if issuing such task order will as-
sist the Secretary in meeting the requirements of 
paragraph (1). Such task order may be issued only 
to a qualified private auditor that certifies that the 
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with the peer review requirements of generally ac-
cepted government auditing standards of the Comp-
troller General of the United States and shall be 
deemed to meet the requirements of the Defense 
Contract Audit Agency for a peer review under such 
standards. 
‘‘(B) The peer review referred to in sub-
paragraph (A) shall occur not less frequently 
than once every three years. 
‘‘(C) Not later than October 1, 2019, the 
Secretary of Defense shall provide to the Com-
mittee on Armed Services of the House of Rep-
resentatives an update on the process of secur-
ing a commercial auditor to perform the peer 
review referred to in subparagraph (A). 
‘‘(4) The Secretary of Defense shall consider 
the results of an incurred cost audit performed 
under this section without regard to whether the De-
fense Contract Audit Agency or a qualified private 
auditor performed the audit. 
‘‘(5) The contracting officer for a contract that 
is the subject of an incurred cost audit shall have 
the sole discretion to accept or reject an audit find-
ing on direct costs of the contract. 
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‘‘(c) MATERIALITY STANDARDS FOR INCURRED COST 
AUDITS.—(1) Not later than October 1, 2020, and except 
as provided in paragraph (2), the minimum materiality 
standard used by an auditor shall— 
‘‘(A) for an incurred cost audit of costs in 
an amount less than or equal to $100,000, be 
4 percent of such costs; 
‘‘(B) for an incurred cost audit of costs in 
an amount greater than $100,000 but less than 
$500,000, be $2,000 plus 2 percent of such 
costs; 
‘‘(C) for an incurred cost audit of costs in 
an amount greater than $500,000 but less than 
$1,000,000, be $5,000 plus 1 percent of such 
costs; 
‘‘(D) for an incurred cost audit of costs in 
an amount greater than $1,000,000 but less 
than $5,000,000, be $8,000 plus 0.9 percent of 
such costs; 
‘‘(E) for an incurred cost audit of costs in 
an amount greater than $5,000,000 but less 
than $10,000,000, be $13,000 plus 0.8 percent 
of such costs; 
‘‘(F) for an incurred cost audit of costs in 
an amount greater than $10,000,000 but less 
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than $50,000,000, be $23,000 plus 0.7 percent 
of such costs; 
‘‘(G) for an incurred cost audit of costs in 
an amount greater than $50,000,000 but less 
than $100,000,000, be $73,000 plus 0.6 per-
cent of such costs; 
‘‘(H) for an incurred cost audit of costs in 
an amount greater than $100,000,000 but less 
than $500,000,000, be $153,000 plus 0.52 per-
cent of such costs; and 
‘‘(I) for an incurred cost audit of costs in 
an amount greater than $500,000,000, be 
$503,000 plus 0.45 percent of such costs. 
‘‘(2) An auditor that performs an incurred cost 
audit under this section may use a materiality 
standard of a lesser amount than the materiality 
standard described under paragraph (1) with respect 
to a particular qualified incurred cost submission 
from a contractor based on an assessment of risk 
presented by such qualified incurred cost submis-
sion. The risk shall be assessed by the auditor in ac-
cordance with generally accepted government audit-
ing standards and guidance issued by the Secretary 
of Defense. 
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‘‘(3) Not later than March 1, 2019, the Comp-
troller General of the United States shall submit to 
the congressional defense committees a report on 
practices for assessing risk and materiality in audit-
ing, which shall include— 
‘‘(A) a summary of commercially accepted 
standards of risk and materiality and Govern-
ment standards for risk and materiality as re-
lated to incurred cost audits; 
‘‘(B) examples of how commercial auditing 
firms apply such standards in developing meth-
odologies for conducting incurred cost audits; 
and 
‘‘(C) recommendations, if appropriate, to 
modify the minimum materiality standards 
under paragraph (1) to be consistent with com-
mercially accepted standards of risk and mate-
riality. 
‘‘(4) Not later than October 1, 2019, and every 
5 years thereafter, the Secretary of Defense shall 
submit to the congressional defense committees a re-
port on commercially accepted standards of risk and 
materiality as related to incurred cost audits. The 
report may contain recommendations to modify the 
materiality standards under paragraph (1) to be 
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consistent with such commercially accepted stand-
ards of risk and materiality. 
‘‘(d) TIMELINESS OF INCURRED COST AUDITS.—(1) 
The Secretary of Defense shall ensure that all incurred 
cost audits performed pursuant to subsection (b) are per-
formed in a timely manner. 
‘‘(2) The Secretary of Defense shall notify a 
contractor within 60 days after receipt of an in-
curred cost submission from the contractor whether 
the submission is a qualified incurred cost submis-
sion. 
‘‘(3) With respect to qualified incurred cost 
submissions received on or after the date of the en-
actment of this section, audit findings shall be 
issued for an incurred cost audit not later than one 
year after the date of receipt of such qualified in-
curred cost submission. 
‘‘(4) If audit findings are not issued within one 
year after the date of receipt of a qualified incurred 
cost submission, such qualified incurred cost submis-
sion shall be considered accepted in its entirety un-
less the Secretary of Defense can demonstrate that 
the contractor unreasonably withheld information 
necessary to perform the incurred cost audit. 
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‘‘(f) REVIEW OF AUDIT PERFORMANCE.—Not later 
than April 1, 2025, the Comptroller General of the United 
States shall provide a report to the congressional defense 
committees that evaluates for the period beginning on Oc-
tober 1, 2019, and ending on August 31, 2023— 
‘‘(1) the timeliness, individual cost, and quality 
of incurred cost audits, set forth separately by in-
curred cost audits performed by the Defense Con-
tract Audit Agency and by qualified private auditors; 
‘‘(2) the cost to contractors of the Department 
of Defense for incurred cost audits, set forth sepa-
rately by incurred cost audits performed by the De-
fense Contract Audit Agency and by qualified pri-
vate auditors; 
‘‘(3) the effect, if any, on other types of audits 
conducted by the Defense Contract Audit Agency 
that results from incurred cost audits conducted by 
qualified private auditors; and 
‘‘(4) the capability and capacity of commercial 
auditors to conduct incurred cost audits for the De-
partment of Defense. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘commercial auditor’ means a 
private entity engaged in the business of performing 
audits. 
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‘‘(2) 
The 
term 
‘flexibly 
priced 
contract’ 
means— 
‘‘(A) a cost-type contract, fixed-price in-
centive fee contract, or price-redeterminable 
contract, or a task order issued under an indefi-
nite delivery-indefinite quantity task order con- 
10 tract, for which final payment is based on 
actual costs incurred; or 
‘‘(B) the materials portion of a time-and- 
materials contract or labor-hour contract of the 
Department of Defense. 
‘‘(3) The term ‘incurred cost audit’ means an 
audit of charges to the Government by a contractor 
under a flexibly priced contract. 
‘‘(4) The term ‘materiality standard’ means a 
dollar amount of misstatements, including omissions, 
contained in an incurred cost audit that would be 
material if the misstatements, individually or in the 
aggregate, could reasonably be expected to influence 
the economic decisions of the Government made on 
the basis of the incurred cost audit. 
‘‘(5) The term ‘qualified incurred cost submis-
sion’ means a submission by a contractor of costs in-
curred under a flexibly priced contract that has been 
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qualified by the Department of Defense as sufficient 
to conduct an incurred cost audit. 
‘‘(6) The term ‘qualified private auditor’ means 
a commercial auditor— 
‘‘(A) that performs audits in accordance 
with generally accepted government auditing 
standards of the Comptroller General of the 
United States; and 
‘‘(B) that has received a passing peer re-
view rating, as defined by generally accepted 
Government auditing standards.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2313a the following new 
item: 
‘‘2313b. Performance of incurred cost audits.’’. 
SEC. 803. MODIFICATIONS TO COST OR PRICING DATA AND 
REPORTING REQUIREMENTS. 
(a) MODIFICATIONS TO SUBMISSIONS OF COST OR 
PRICING DATA.— 
(1) TITLE 10.—Subsection (a) of section 2306a 
of title 10, United States Code, is amended— 
(A) by striking ‘‘December 5, 1990’’ each 
place it appears and inserting ‘‘June 30, 2018’’; 
(B) by striking ‘‘December 5, 1991’’ each 
place it appears and inserting ‘‘July 1, 2018’’; 
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(C) by striking ‘‘$100,000’’ each place it 
appears and inserting ‘‘$750,000’’; 
(D) in paragraph (1)— 
(i) in subparagraphs (A)(i), (B)(i), 
(C)(i), (C)(ii), and (D)(i), by striking 
‘‘$500,000’’ and inserting ‘‘$2,500,000’’; 
and 
(ii) in subparagraph (B)(ii), by strik-
ing ‘‘$500,000’’ and inserting ‘‘$750,000’’; 
(E) in paragraph (6), by striking ‘‘Decem-
ber 5, 1990’’ and inserting ‘‘June 30, 2018’’; 
and 
(F) in paragraph (7), by striking ‘‘to the 
amount’’ and all that follows through ‘‘higher 
multiple of $50,000.’’ and inserting ‘‘in accord-
ance with section 1908 of title 41.’’. 
(2) TITLE 41.—Section 3502 of title 41, United 
States Code, is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘October 13, 1994’’ 
each place it appears and inserting ‘‘June 
30, 2018’’; 
(ii) by striking ‘‘$100,000’’ each place 
it appears and inserting ‘‘$750,000’’; 
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(iii) in paragraphs (1)(A), (2)(A), 
(3)(A), (3)(B), and (4)(A), by striking 
‘‘$500,000’’ and inserting ‘‘$2,500,000’’; 
and 
(iv) in paragraph (2)(B), by striking 
‘‘$500,000’’ and inserting ‘‘$750,000’’; 
(B) in subsection (f), by striking ‘‘October 
13, 1994’’ and inserting ‘‘June 30, 2018’’; and 
(C) in subsection (g), by striking ‘‘to the 
amount’’ and all that follows through ‘‘higher 
multiple of $50,000.’’ and inserting ‘‘in accord-
ance with section 1908.’’. 
(b) MODIFICATION TO AUTHORITY TO REQUIRE SUB-
MISSION.—Paragraph (1) of section 2306a(d) of title 10, 
United States Code, is amended by striking ‘‘the con-
tracting officer shall require submission of’’ and all the 
follows through ‘‘to the extent necessary’’ and inserting 
‘‘the offeror shall be required to submit to the contracting 
officer data other than certified cost or pricing data (if 
requested by the contracting officer), to the extent nec-
essary’’. 
(c) COMPTROLLER GENERAL REVIEW OF MODIFICA-
TIONS TO COST OR PRICING DATA SUBMISSION REQUIRE-
MENTS.—Not later than March 1, 2022, the Comptroller 
General of the United States shall submit to the congres-
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sional defense committees a report on the implementation 
and effect of the amendments made by subsections (a) and 
(b). 
(d) REQUIREMENTS
FOR
DEFENSE
CONTRACT 
AUDIT AGENCY REPORT.— 
(1) IN GENERAL.—Section 2313a of title 10, 
United States Code, is amended— 
(A) in subsection (a)(2)— 
(i) in subparagraph (A)— 
(I) by inserting ‘‘and dollar 
value’’ after ‘‘number’’; and 
(II) by inserting ‘‘, set forth sep-
arately by type of audit’’ after ‘‘pend-
ing’’; 
(ii) in subparagraph (C), by inserting 
‘‘, both from the date of receipt of a quali-
fied incurred cost submission and from the 
date the audit begins’’ after ‘‘audit’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) the sustained questioned costs, set 
forth separately by type of audit, both as a 
total value and as a percentage of the total 
questioned costs for the audit;’’; 
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(iv) by striking subparagraph (E); 
and 
(v) by inserting after subparagraph 
(D) the following new subparagraphs: 
‘‘(E) the total number and dollar value of 
incurred cost audits completed, and the method 
by which such incurred cost audits were com-
pleted; 
‘‘(F) the aggregate cost of performing au-
dits, set forth separately by type of audit; 
‘‘(G) the ratio of sustained questioned 
costs to the aggregate costs of performing au-
dits, set forth separately by type of audit; and 
‘‘(H) the total number and dollar value of 
audits that are pending for a period longer than 
one year as of the end of the fiscal year covered 
by the report, and the fiscal year in which the 
qualified submission was received, set forth sep-
arately by type of audit;’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(d) DEFINITIONS.— 
‘‘(1) The terms ‘incurred cost audit’ and ‘quali-
fied incurred cost submission’ have the meaning 
given those terms in section 2313b of this title. 
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‘‘(2) The term ‘sustained questioned costs’ 
means questioned costs that were recovered by the 
Federal Government as a result of contract negotia-
tions related to such questioned costs.’’. 
(2) EXEMPTION TO REPORT TERMINATION RE-
QUIREMENTS.—Section 1080 of the National De-
fense Authorization Act for Fiscal Year 2016 (Pub-
lic Law 114–92; 129 Stat. 1000; 10 U.S.C. 111 
note), as amended by section 1061(j) of the National 
Defense Authorization Act for Fiscal Year 2017 
(Public Law 114–328), does not apply to the report 
required to be submitted to Congress under section 
2313a of title 10, United States Code. 
(e) ADJUSTMENT
TO VALUE
OF COVERED CON-
TRACTS FOR REQUIREMENTS RELATING TO ALLOWABLE 
COSTS.—Subparagraph (B) of section 2324(l)(1) of title 
10, United States Code, is amended by striking ‘‘to the 
equivalent’’ and all that follows through ‘‘higher multiple 
of $50,000.’’ and inserting ‘‘in accordance with section 
1908 of title 41.’’. 
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PART II—EARLY INVESTMENTS IN ACQUISITION 
PROGRAMS 
SEC. 811. REQUIREMENT TO EMPHASIZE RELIABILITY AND 
MAINTAINABILITY IN WEAPON SYSTEM DE-
SIGN. 
(a) SUSTAINMENT FACTORS
IN WEAPON SYSTEM 
DESIGN.— 
(1) IN
GENERAL.—Chapter 144 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2442. Sustainment factors in weapon system design 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
ensure that the defense acquisition system gives ample em-
phasis to sustainment factors, particularly those factors 
that are affected principally by the design of a weapon 
system, in the development of a weapon system. 
‘‘(b) REQUIREMENTS PROCESS.—The Secretary shall 
ensure that reliability and maintainability are included in 
the performance attributes of the key performance param-
eter on sustainment during the development of capabilities 
requirements. 
‘‘(c) SOLICITATION AND AWARD OF CONTRACTS.— 
‘‘(1) REQUIREMENT.—The program manager of 
a weapon system shall include in the solicitation for 
and terms of a covered contract for the weapon sys-
tem clearly defined and measurable requirements for 
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engineering activities and design specifications for 
reliability and maintainability. 
‘‘(2) EXCEPTION.—If the program manager de-
termines that engineering activities and design speci-
fications for reliability or maintainability should not 
be a requirement in a covered contract, the program 
manager shall document in writing the justification 
for the decision. 
‘‘(3) SOURCE SELECTION CRITERIA.—The Sec-
retary shall ensure that sustainment factors, includ-
ing reliability and maintainability, are given ample 
emphasis in the process for source selection. The 
Secretary shall encourage the use of objective reli-
ability and maintainability criteria in the evaluation 
of competitive proposals. 
‘‘(d) CONTRACT PERFORMANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall ensure 
that the Department of Defense uses best practices 
for responding to the positive or negative perform-
ance of a contractor in meeting the sustainment re-
quirements of a covered contract for a weapon sys-
tem. The Secretary shall encourage the use of incen-
tive fees authorized in paragraph (2) in all covered 
contracts for weapons systems. The Secretary shall 
take the necessary actions to enable program offices 
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to execute the recovery options required for each 
covered contract under paragraph (3). 
‘‘(2) AUTHORITY FOR INCENTIVE FEES.—The 
Secretary of Defense is authorized to pay an incen-
tive fee to a contractor that exceeds the design speci-
fication requirements for reliability or maintain-
ability for a covered contract. In exercising the au-
thority provided in this paragraph, the Secretary 
may provide in the terms of the contract for the 
payment of an incentive fee to a contractor not later 
than the date of acceptance of the last item under 
the contract. 
‘‘(3) RECOVERY
OPTIONS.—(A) Any covered 
contract for a weapon system shall include terms for 
amounts to be paid by the contractor to the Govern-
ment for failure to meet the design specification re-
quirements for reliability and maintainability of the 
contract by the date of acceptance of the last item 
under the contract. Terms for such amounts shall be 
included in the solicitation for the contract. Such 
terms shall include provisions providing that— 
‘‘(i) the contractor, at no or minimal cost 
to the Government as determined by the Sec-
retary and included in the contract, identifies 
the cause of the failure in the system design, 
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develops an engineering change, and, in the 
case of a production contract, modifies all end 
items to be delivered or already delivered under 
the contract; or 
‘‘(ii) the contractor provides the Govern-
ment— 
‘‘(I) a refund in the amount required 
to identify the cause of the failure in the 
system design, develop an engineering 
change, and modify all end items delivered 
under the contract; and 
‘‘(II) associated technical data re-
quired to make the necessary modifica-
tions. 
‘‘(B) The Secretary may waive the requirement 
in subparagraph (A) with respect to a covered con-
tract if the Secretary determines that such require-
ment is not in the national security interests of the 
United States. 
‘‘(4) MEASUREMENT
OF
RELIABILITY
AND 
MAINTAINABILITY.—In carrying out paragraphs (2) 
and (3), the program manager shall base determina-
tions of a contractor’s performance on reliability and 
maintainability data collected during developmental 
testing and operational testing. 
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‘‘(e) COVERED CONTRACT DEFINED.—In this sec-
tion, the term ‘covered contract’, with respect to a weapon 
system, means a contract— 
‘‘(1) for the engineering and manufacturing de-
velopment of a weapon system; or 
‘‘(2) for the production of a weapon system.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter I of such chap-
ter is amended by adding at the end the following 
new item: 
‘‘2442. Sustainment factors in weapon system design.’’. 
(b) EFFECTIVE DATE FOR CERTAIN PROVISIONS.— 
Subsections (c) and (d) of section 2442 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to any covered contract (as defined in that section) 
for which the contract solicitation is issued on or after 
the date occurring one year after the date of the enact-
ment of this Act. 
(c) INVESTMENT PROGRAM AUTHORIZED.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall establish an investment program for funding 
engineering changes to the design of a weapon sys-
tem in the engineering and manufacturing develop-
ment phase or in the production phase of an acquisi-
tion program to improve reliability or maintain-
ability of the weapon system and reduce projected 
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operating and support costs. The program may be 
funded from the Defense Modernization Account au-
thorized in section 2216 of title 10, United States 
Code. A program manager may apply for available 
funds by presenting a business case analysis of the 
anticipated return on investment of such funds. 
(2) BRIEFING REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the 
Secretary of Defense, in consultation with the Secre-
taries of the military departments, shall provide a 
briefing to the Committees on Armed Services in the 
Senate and the House of Representatives on an im-
plementation plan for the program authorized under 
paragraph (1). The implementation plan shall set 
forth the process by which program managers apply 
for available funds, including information on the val-
idation of business case analyses and the evaluation 
of applications. The briefing shall also include the 
results of a review of past or existing programs to 
improve reliability and maintainability and reduce 
operating and support costs of weapon systems, an 
assessment of best practices and lessons learned 
from these programs, and an assessment of the op-
portunities for consolidation of existing similar pro-
grams. 
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SEC. 812. LICENSING OF APPROPRIATE INTELLECTUAL 
PROPERTY TO SUPPORT MAJOR WEAPON 
SYSTEMS. 
(a) NEGOTIATION OF PRICE FOR TECHNICAL DATA 
BEFORE DEVELOPMENT
OR PRODUCTION
OF MAJOR 
WEAPON SYSTEM.— 
(1) REQUIREMENT.—Chapter 144 of title 10, 
United States Code, is amended by inserting after 
section 2438 the following new section: 
‘‘§ 2439. Negotiation of price for technical data before 
development or production of major 
weapon systems 
‘‘The Secretary of Defense shall ensure that the De-
partment of Defense, before selecting a contractor for the 
engineering and manufacturing development of a major 
weapon system, or for the production of a major weapon 
system, negotiates a price for technical data to be deliv-
ered under a contract for such development or produc-
tion.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2438 
the following new item: 
‘‘2439. Negotiation of price for technical data before development or production 
of major weapon systems.’’. 
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(3) EFFECTIVE DATE.—Section 2439 of title 
10, United States Code, as added by paragraph (1), 
shall apply with respect to any contract for engineer-
ing and manufacturing development of a major 
weapon system, or for the production of a major 
weapon system, for which the contract solicitation is 
issued on or after the date occurring one year after 
the date of the enactment of this Act. 
(b) WRITTEN DETERMINATION FOR MILESTONE B 
APPROVAL.— 
(1) IN GENERAL.—Subsection (a)(3) of section 
2366b of title 10, United States Code, is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (M); and 
(B) by inserting after subparagraph (N) 
the following new subparagraph: 
‘‘(O) appropriate actions have been taken 
to negotiate and enter into a contract or con-
tract options for the technical data required to 
support the program; and’’. 
(2) EFFECTIVE DATE.—Section 2366b(a)(3)(O) 
of title 10, United States Code, as added by para-
graph (1), shall apply with respect to any major de-
fense acquisition program receiving Milestone B ap-
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proval on or after the date occurring one year after 
the date of the enactment of this Act. 
(c) PREFERENCE
FOR
NEGOTIATION
OF
CUS-
TOMIZED LICENSE AGREEMENTS.—Section 2320 of title 
10, United States Code, is amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(2) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) PREFERENCE FOR SPECIALLY NEGOTIATED LI-
CENSES.—The Secretary of Defense shall, to the max-
imum extent practicable, negotiate and enter into a con-
tract with a contractor for a specially negotiated license 
for technical data to support the product support strategy 
of a major weapon system or subsystem of a major weapon 
system. In performing the assessment and developing the 
corresponding strategy required under subsection (e) for 
such a system or subsystem, a program manager shall 
consider the use of specially negotiated licenses to acquire 
customized technical data appropriate for the particular 
elements of the product support strategy.’’. 
SEC. 813. MANAGEMENT OF INTELLECTUAL PROPERTY 
MATTERS WITHIN THE DEPARTMENT OF DE-
FENSE. 
(a) MANAGEMENT OF INTELLECTUAL PROPERTY.— 
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(1) IN
GENERAL.—Chapter 137 of title 10, 
United States Code, is amended by inserting after 
section 2321 the following new section: 
‘‘§ 2322. Management of intellectual property matters 
within the Department of Defense 
‘‘(a) OFFICE
AND DIRECTOR
OF INTELLECTUAL 
PROPERTY.—(1) There is an Office of Intellectual Prop-
erty within the Office of the Under Secretary of Defense 
for Acquisition and Sustainment. 
‘‘(2) The Office shall be headed by a Director of In-
tellectual Property, who shall have the qualifications de-
scribed in paragraph (3). The Director is responsible in 
the Department of Defense to the Under Secretary of De-
fense for Acquisition and Sustainment for policy and over-
sight of the acquisition and licensing of intellectual prop-
erty within the Department of Defense. The Director shall 
report directly to the Under Secretary. 
‘‘(3) In order to qualify to be assigned to the position 
of Director, an individual shall— 
‘‘(A) have management expertise in, and profes-
sional experience with, intellectual property matters, 
including an understanding of intellectual property 
law, regulations, and policies, especially with respect 
to regulations and policies of the Federal Govern-
ment and the Department of Defense for acquiring 
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or licensing intellectual property, and best practices 
for negotiating and executing business arrangements 
with industry for the acquisition or licensing of intel-
lectual property; 
‘‘(B) have an understanding of Department of 
Defense weapon system acquisition; and 
‘‘(C) have an understanding of the commercial 
marketplace; commercial industry operations, includ-
ing supply chain operations; business strategies; and 
private investment in research and development. 
‘‘(4) The Secretary of Defense shall designate the po-
sition of Director as a critical acquisition position under 
section 1733(b)(1)(C) of this title. 
‘‘(b) DUTIES.—(1) The Director of Intellectual Prop-
erty (in this section referred to as the ‘Director’) shall 
oversee and coordinate efforts throughout the Department 
of Defense to acquire or license intellectual property with-
in the Department of Defense. The duties under this para-
graph shall include the duties specified in paragraphs (2) 
through (8). 
‘‘(2) The Director shall develop and recommend any 
policy guidance on the acquisition or licensing of intellec-
tual property to be issued by the Secretary of Defense. 
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‘‘(3) The Director shall provide oversight and coordi-
nation of the efforts within the Department of Defense 
to acquire or license intellectual property— 
‘‘(A) to ensure that program managers are 
aware of the rights afforded the Federal Government 
and contractors in intellectual property and that 
program managers fully consider and use all avail-
able techniques and best practices for acquiring or 
licensing intellectual property early in the acquisition 
process; 
‘‘(B) to enable consistency across the military 
departments and the Department of Defense in 
strategies for obtaining intellectual property and 
communicating with industry; and 
‘‘(C) to raise awareness within the acquisition, 
science and technology, and logistics communities 
within the Department of intellectual property 
issues. 
‘‘(4) The Director shall assist program managers in 
developing customized intellectual property strategies for 
each weapon system based on, at a minimum, the unique 
characteristics of the weapon system and its components, 
the product support strategy for the weapon system, the 
organic industrial base strategy of the military department 
concerned, and the commercial market. 
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‘‘(5) The Director shall develop guidelines and re-
sources on intellectual property matters and make them 
available to the acquisition workforce. Such guidelines and 
resources shall include templates for specially negotiated 
licenses (as appropriate) and a collection of definitions, 
key terms, examples, and case studies that demonstrate 
and resolve ambiguities in the differences between— 
‘‘(A) detailed manufacturing and process data; 
‘‘(B) form, fit, and function data; and 
‘‘(C) data required for operations, maintenance, 
installation, and training. 
‘‘(6) The Director shall establish, maintain, super-
vise, and assign to program offices the cadre of intellectual 
property experts established under subsection (c). 
‘‘(7) The Director, in coordination with the Defense 
Acquisition University and in consultation with industry, 
shall— 
‘‘(A) develop a career path, including develop-
ment opportunities, talent management programs, 
and training, for the cadre of intellectual property 
experts established under subsection (c); and 
‘‘(B) develop, update, and coordinate intellec-
tual property training provided to the acquisition 
workforce. 
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‘‘(8) The Director shall foster communications with 
industry and serve as a central point of contact within 
the Department of Defense for communications with con-
tractors on intellectual property matters. The Director 
may interact directly with industry, trade associations, 
other Government agencies, academic research and edu-
cational institutions, and scientific organizations engaged 
in intellectual property matters. As part of such commu-
nications, the Director shall regularly engage with appro-
priately representative entities, including large and small 
businesses, traditional and non-traditional Government 
contractors, prime contractors and subcontractors, and 
maintenance repair organizations. 
‘‘(c) CADRE
OF
INTELLECTUAL
PROPERTY
EX-
PERTS.—(1) The Director shall establish within the Office 
of Intellectual Property a cadre of personnel who are ex-
perts in intellectual property matters. The purpose of the 
cadre is to ensure a consistent, strategic, and highly 
knowledgeable approach to acquiring or licensing intellec-
tual property by providing expert advice, assistance, and 
resources to the acquisition workforce on intellectual prop-
erty matters, including acquiring or licensing intellectual 
property. 
‘‘(2) The cadre of experts shall be assigned to a weap-
ons system program office or an acquisition command 
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within a military department to advise, assist, and provide 
resources to a program manager or program executive of-
ficer on intellectual property matters at various stages of 
the life cycle of a weapon system. In performing such du-
ties, the experts shall— 
‘‘(A) interpret and provide counsel on laws, reg-
ulations, and policies relating to intellectual prop-
erty; 
‘‘(B) advise and assist in the development of an 
acquisition strategy, product support strategy, and 
intellectual property strategy for a weapon system; 
‘‘(C) conduct or assist with financial analysis 
and valuation of intellectual property; 
‘‘(D) assist in the drafting of a contract solici-
tation or contract; 
‘‘(E) interact with or assist in interactions with 
contractors, including communications and negotia-
tions with contractors on contract solicitations and 
contract awards; and 
‘‘(F) conduct or assist with mediation if tech-
nical data delivered pursuant to a contract is incom-
plete or does not comply with the terms of the con-
tract. 
‘‘(3)(A) In order to achieve the purpose set forth in 
paragraph (1), the Director shall ensure the cadre has the 
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appropriate number of staff and such staff possesses the 
necessary skills, knowledge, and experience to carry out 
the duties under paragraph (2), including in relevant 
areas of law, contracting, acquisition, logistics, engineer-
ing, financial analysis, and valuation. The Director may 
use existing authorities to staff the cadre, including those 
in subparagraphs (B), (C), (D), and (F). 
‘‘(B) Civilian personnel from within the Office of the 
Secretary of Defense, Joint Staff, military departments, 
Defense Agencies, and combatant commands may be as-
signed to serve as members of the cadre, upon request of 
the Director. 
‘‘(C) The Director may use the authorities for highly 
qualified experts under section 9903 of title 5, to hire ex-
perts as members of the cadre who are skilled profes-
sionals in intellectual property and related matters. 
‘‘(D) The Director may enter into a contract with a 
private-sector entity for specialized expertise to support 
the cadre. Such entity may be considered a covered Gov-
ernment support contractor, as defined in section 2320 of 
this title. 
‘‘(E) In establishing the cadre, the Director shall give 
preference to civilian employees of the Department of De-
fense, rather than members of the armed forces, to main-
tain continuity in the cadre. 
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‘‘(F) The Director is authorized to use funding from 
the Defense Acquisition Workforce Development Fund for 
the purpose of recruitment, training, and retention of the 
cadre, including paying salaries of newly hired members 
of the cadre for up to three years. 
‘‘(G) Members of the cadre shall report to the Direc-
tor.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘2322. Management of intellectual property matters within the Department of 
Defense.’’. 
(b) PLACEMENT IN THE OFFICE OF THE SECRETARY 
OF DEFENSE.—Subsection 131(b)(8) of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(J) The Director of the Office of Intellec-
tual Property assigned pursuant to section 
2322(a) of this title.’’. 
(c) ADDITIONAL
ACQUISITION
POSITION.—Sub-
section 1721(b) of title 10, United States Code, is amend-
ed by adding at the end the following new paragraph: 
‘‘(12) Intellectual property.’’. 
(d) REVIEW OF ACQUISITION WORKFORCE TRAIN-
ING.—Not later than one year after the date of the enact-
ment of this Act, the Secretary of Defense shall revise the 
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education and training programs provided to the acquisi-
tion workforce under chapter 87 of title 10, United States 
Code— 
(1) to ensure the acquisition workforce main-
tains a basic familiarity with the fundamental as-
pects of the acquisition and licensing of intellectual 
property; and 
(2) to establish and maintain advanced exper-
tise in the acquisition and licensing of intellectual 
property to staff the cadre of intellectual property 
experts required under section 2322 of title 10, 
United States Code, as added by subsection (a). 
SEC. 814. IMPROVEMENT OF PLANNING FOR ACQUISITION 
OF SERVICES. 
(a) IN GENERAL.— 
(1) IMPROVEMENT OF PLANNING FOR ACQUISI-
TION OF SERVICES.—Chapter 137 of title 10, United 
States Code, is amended by inserting after section 
2328 the following new section: 
‘‘§ 2329. Procurement of services: data analysis and 
requirements validation 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
ensure that— 
‘‘(1) appropriate and sufficiently detailed data 
are collected and analyzed to support the validation 
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of requirements for services contracts and inform 
the planning, programming, budgeting, and execu-
tion process of the Department of Defense; 
‘‘(2) requirements for services contracts are 
evaluated appropriately and in a timely manner to 
inform decisions regarding the procurement of serv-
ices; and 
‘‘(3) decisions regarding the procurement of 
services consider available resources and total force 
management policies and procedures. 
‘‘(b) SPECIFICATION OF AMOUNTS REQUESTED IN 
BUDGET.—Effective October 1, 2022, the Secretary of 
Defense shall annually submit to Congress information on 
services contracts that clearly and separately identifies the 
amount requested for each category of services to be pro-
cured for each Defense Agency, Department of Defense 
Field Activity, command, or military installation. Such in-
formation shall— 
‘‘(1) be submitted at or about the time of the 
budget submission by the President under section 
1105(a) of title 31; 
‘‘(2) cover the fiscal year covered by such budg-
et submission by the President; 
‘‘(3) be consistent with total amounts of esti-
mated expenditures and proposed appropriations 
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necessary to support the programs, projects, and ac-
tivities of the Department of Defense included in 
such budget submission by the President for that 
fiscal year; and 
‘‘(4) be organized using a common enterprise 
data structure developed under section 2222 of this 
title. 
‘‘(c) DATA ANALYSIS.—(1) Each Secretary of a mili-
tary department shall regularly analyze past spending pat-
terns and anticipated future requirements with respect to 
the procurement of services within such military depart-
ment. 
‘‘(2)(A) The Secretary of Defense shall regularly ana-
lyze past spending patterns and anticipated future re-
quirements with respect to the procurement of services— 
‘‘(i) within each Defense Agency and Depart-
ment of Defense Field Activity; and 
‘‘(ii) across military departments, Defense 
Agencies, and Department of Defense Field Activi-
ties. 
‘‘(B) The Secretaries of the military departments 
shall make data on services contracts available to the Sec-
retary of Defense for purposes of conducting the analysis 
required under subparagraph (A). 
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‘‘(3) The analyses conducted under this subsection 
shall— 
‘‘(A) identify contracts for similar services that 
are procured for three or more consecutive years at 
each Defense Agency, Department of Defense Field 
Activity, command, or military installation; 
‘‘(B) evaluate patterns in the procurement of 
services, to the extent practicable, at each Defense 
Agency, Department of Defense Field Activity, com-
mand, or military installation and by category of 
services procured; 
‘‘(C) be used to validate requirements for serv-
ices contracts entered into after the date of the en-
actment of this subsection; and 
‘‘(D) be used to inform decisions on the award 
of and funding for such services contracts. 
‘‘(d) REQUIREMENTS EVALUATION.—Each Services 
Requirements Review Board shall evaluate each require-
ment for a services contract, taking into consideration 
total force management policies and procedures, available 
resources, the analyses conducted under subsection (c), 
and contracting efficacy and efficiency. An evaluation of 
a services contract for compliance with contracting policies 
and procedures may not be considered to be an evaluation 
of a requirement for such services contract. 
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‘‘(e) TIMELY PLANNING TO AVOID BRIDGE CON-
TRACTS.—(1) Effective October 1, 2018, the Secretary of 
Defense shall ensure that a requirements owner shall, to 
the extent practicable, plan appropriately before the date 
of need of a service at a Defense Agency, Department of 
Defense Field Activity, command, or military installation 
to avoid the use of a bridge contract to provide for con-
tinuation of a service to be performed through a services 
contract. Such planning shall include allowing time for a 
requirement to be validated, a services contract to be en-
tered into, and funding for the services contract to be se-
cured. 
‘‘(2)(A) Upon the first use, due to inadequate plan-
ning (as determined by the Secretary of Defense), of a 
bridge contract to provide for continuation of a service to 
be performed through a services contract, the require-
ments owner, along with the contracting officer or a des-
ignee of the contracting officer for the contract, shall— 
‘‘(i) for a services contract in an amount less 
than $10,000,000, provide an update on the status 
of the bridge contract (including the rationale for 
using the bridge contract) to the commander or the 
senior civilian official of the Defense Agency con-
cerned, Department of Defense Field Activity con-
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cerned, command concerned, or military installation 
concerned, as applicable; or 
‘‘(ii) for a services contract in an amount equal 
to or greater than $10,000,000, provide an update 
on the status of the bridge contract (including the 
rationale for using the bridge contract) to the service 
acquisition executive for the military department 
concerned, the head of the Defense Agency con-
cerned, the combatant commander concerned, or the 
Under Secretary of Defense for Acquisition and 
Sustainment, as applicable. 
‘‘(B) Upon the second use, due to inadequate plan-
ning (as determined by the Secretary of Defense), of a 
bridge contract to provide for continuation of a service to 
be performed through a services contract in an amount 
less than $10,000,000, the commander or senior civilian 
official referred to in subparagraph (A)(i) shall provide no-
tification of such second use to the Vice Chief of Staff 
of the armed force concerned and the service acquisition 
executive of the military department concerned, the head 
of the Defense Agency concerned, the combatant com-
mander concerned, or the Under Secretary of Defense for 
Acquisition and Sustainment, as applicable. 
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‘‘(f) EXCEPTION.—Except with respect to the anal-
yses required under subsection (c), this section shall not 
apply to— 
‘‘(1) services contracts in support of contin-
gency operations, humanitarian assistance, disaster 
relief, or national security emergencies; or 
‘‘(2) services contracts entered into pursuant to 
an international agreement. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘bridge contact’ means— 
‘‘(A) an extension to an existing contract 
beyond the period of performance to avoid a 
lapse in service caused by a delay in awarding 
a subsequent contract; or 
‘‘(B) a new short-term contract awarded 
on a sole-source basis to avoid a lapse in service 
caused by a delay in awarding a subsequent 
contract. 
‘‘(2) The term ‘requirements owner’ means a 
member of the armed forces (other than the Coast 
Guard) or a civilian employee of the Department of 
Defense responsible for a requirement for a service 
to be performed through a services contract. 
‘‘(3) The term ‘Services Requirements Review 
Board’ has the meaning given in Department of De-
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fense Instruction 5000.74, titled ‘Defense Acquisi-
tion of Services’ and dated January 5, 2016, or a 
successor instruction.’’ 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2328 
the following new item: 
‘‘2329. Procurement of services: data analysis and requirements validation.’’. 
SEC. 815. IMPROVEMENTS TO TEST AND EVALUATION 
PROCESSES AND TOOLS. 
(a) DEVELOPMENTAL TEST PLAN SUFFICIENCY AS-
SESSMENTS.— 
(1) ADDITION TO MILESTONE B BRIEF SUM-
MARY
REPORT.—Section 2366b(c)(1) of title 10, 
United States Code, is amended— 
(A) by redesignating subparagraph (G) as 
subparagraph (H); and 
(B) by inserting after subparagraph (F) 
the following new subparagraph (G): 
‘‘(G) An assessment of the sufficiency of 
developmental test and evaluation plans, includ-
ing the use of automated data analytics or mod-
eling and simulation tools.’’. 
(2) ADDITION TO MILESTONE C BRIEF SUM-
MARY REPORT.—Section 2366c(a) of such title is 
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amended by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) An assessment of the sufficiency of the de-
velopmental test and evaluation completed, including 
the use of automated data analytics or modeling and 
simulation tools.’’. 
(3) RESPONSIBILITY FOR CONDUCTING ASSESS-
MENTS.—For purposes of the sufficiency assess-
ments required by section 2366b(c)(1) and section 
2366c(a)(4) of such title, as added by paragraphs 
(1) and (2), with respect to a major defense acquisi-
tion program— 
(A) if the milestone decision authority for 
the program is the service acquisition executive 
of the military department that is managing the 
program, the sufficiency assessment shall be 
conducted by the senior official within the mili-
tary department with responsibility for develop-
mental testing; and 
(B) if the milestone decision authority for 
the program is the Under Secretary of Defense 
for Acquisition and Sustainment, the sufficiency 
assessment shall be conducted by the senior De-
partment of Defense official with responsibility 
for developmental testing. 
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(4) GUIDANCE
REQUIRED.—Within one year 
after the date of the enactment of this Act, the sen-
ior Department of Defense official with responsi-
bility for developmental testing shall develop guid-
ance for the sufficiency assessments required by sec-
tion 2366b(c)(1) and section 2366c(a)(4) of title 10, 
United States Code, as added by paragraphs (1) and 
(2). At a minimum, the guidance shall require— 
(A) for the sufficiency assessment required 
by section 2366b(c)(1) of such title, that the as-
sessment address the sufficiency of— 
(i) the developmental test and evalua-
tion plan; 
(ii) the developmental test and evalua-
tion schedule, including a comparison to 
historic analogous systems; 
(iii) the developmental test and eval-
uation resources (facilities, personnel, test 
assets, data analytics tools, and modeling 
and simulation capabilities); 
(iv) the risks of developmental test 
and production concurrency; and 
(v) the developmental test criteria for 
entering the production phase; and 
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(B) for the sufficiency assessment required 
by section 2366c(a)(4) of such title, that the as-
sessment address— 
(i) the sufficiency of the develop-
mental test and evaluation completed; 
(ii) the sufficiency of the plans and 
resources available for remaining develop-
mental test and evaluation; 
(iii) the risks identified during devel-
opmental testing to the production and de-
ployment phase; 
(iv) the sufficiency of the plans and 
resources for remaining developmental test 
and evaluation; and 
(v) the readiness of the system to per-
form scheduled initial operational test and 
evaluation. 
(b) EVALUATION
OF DEPARTMENT
OF DEFENSE 
NEED FOR CENTRALIZED TOOLS FOR DEVELOPMENTAL 
TEST AND EVALUATION.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall evaluate the strategy of the Department of De-
fense for developing and expanding the use of tools 
designed to facilitate the cost effectiveness and effi-
ciency of developmental testing, including automated 
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test methods and tools, modeling and simulation 
tools, and big data analytics technologies. The eval-
uation shall include a determination of the appro-
priate role of the senior Department of Defense offi-
cial with responsibility for developmental testing in 
developing enterprise level strategies related to such 
types of testing tools. 
(2) BRIEFING REQUIRED.—Not later than one 
year after the date of the enactment of this Act, the 
Secretary shall provide a briefing to the Committee 
on Armed Services of the House of Representatives 
on the results of the evaluation required by para-
graph (1). 
PART III—ACQUISITION WORKFORCE 
IMPROVEMENTS 
SEC. 821. ENHANCEMENTS TO THE CIVILIAN PROGRAM 
MANAGEMENT WORKFORCE. 
(a) ESTABLISHMENT OF PROGRAM MANAGER DE-
VELOPMENT PROGRAM.— 
(1) IN GENERAL.—The Secretary of Defense, in 
consultation with the Secretaries of the military de-
partments, shall implement a program manager de-
velopment program to provide for the professional 
development of high-potential, experienced civilian 
personnel. Personnel shall be competitively selected 
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for the program based on their potential to become 
a program manager of a major defense acquisition 
program, as defined in section 2430 of title 10, 
United States Code. The program shall be adminis-
tered and overseen by the Secretary of each military 
department, acting through the service acquisition 
executive for the department concerned. 
(2) PLAN REQUIRED.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense shall provide to the Committees on 
Armed Services of the Senate and the House of Rep-
resentatives a comprehensive plan to implement the 
program established under paragraph (1). In devel-
oping the plan, the Secretary of Defense shall seek 
the input of relevant external parties, including pro-
fessional associations, other government entities, and 
industry. The plan shall include the following ele-
ments: 
(A) An assessment of the minimum level of 
subject matter experience, education, years of 
experience, certifications, and other qualifica-
tions required to be selected into the program, 
set forth separately for current Department of 
Defense employees and for personnel hired into 
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the program from outside the Department of 
Defense. 
(B) A description of hiring flexibilities to 
be used to recruit qualified personnel from out-
side the Department of Defense. 
(C) A description of the extent to which 
mobility agreements will be required to be 
signed by personnel selected for the program 
during their participation in the program and 
after their completion of the program. The use 
of mobility agreements shall be applied to help 
maximize the flexibility of the Department of 
Defense in assigning personnel, while not inhib-
iting the participation of the most capable can-
didates. 
(D) A description of the tenure obligation 
required of personnel selected for the program. 
(E) A plan for training during the course 
of the program, including training in leader-
ship, program management, engineering, fi-
nance and budgeting, market research, business 
acumen, contracting, supplier management, re-
quirement setting and tradeoffs, intellectual 
property matters, and software. 
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(F) A description of career paths to be fol-
lowed by personnel in the program in order to 
ensure that personnel in the program gain ex-
pertise in the program management functional 
career field competencies identified by the De-
partment in existing guidance and the topics 
listed in subparagraph (E), including— 
(i) a determination of the types of ad-
vanced educational degrees that enhance 
program management skills and the mech-
anisms available to the Department of De-
fense to facilitate the attainment of those 
degrees by personnel in the program; 
(ii) a determination of required as-
signments to positions within acquisition 
programs, including position type and ac-
quisition category of the program office; 
(iii) a determination of required or en-
couraged rotations to career broadening 
positions outside of acquisition programs; 
and 
(iv) a determination of how the pro-
gram will ensure the opportunity for a re-
quired rotation to industry of at least six 
months to develop an understanding of in-
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dustry motivation and business acumen, 
such as by developing an industry ex-
change program for civilian program man-
agers, similar to the Corporate Fellows 
Program of the Secretary of Defense. 
(G) A general description of the number of 
personnel anticipated to be selected into the 
program, how frequently selections will occur, 
how long personnel selected into the program 
will participate in the program, and how per-
sonnel will be placed into an assignment at the 
completion of the program. 
(H) A description of benefits that will be 
offered under the program using existing 
human capital flexibilities to retain qualified 
employees, such as student loan repayments. 
(I) An assessment of personnel flexibilities 
needed to allow the military departments and 
the Defense Agencies to reassign or remove pro-
gram managers that do not perform effectively. 
(J) A description of how the program will 
be administered and overseen by the Secretaries 
of each military department, acting through the 
service acquisition executive for the department 
concerned. 
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(K) A description of how the program will 
be integrated with existing program manager 
development efforts at each military depart-
ment. 
(3) USE OF DEFENSE ACQUISITION WORKFORCE 
DEVELOPMENT FUND.—Amounts in the Department 
of Defense Acquisition Workforce Development 
Fund (established under section 1705 of title 10, 
United States Code) may be used to pay the base 
salary of personnel in the program established under 
paragraph (1) during the period of time such per-
sonnel are temporarily assigned to a developmental 
rotation or training program anticipated to last at 
least six months. 
(4) IMPLEMENTATION.—The program estab-
lished under paragraph (1) shall be implemented not 
later than September 30, 2019. 
(b) INDEPENDENT STUDY OF INCENTIVES FOR PRO-
GRAM MANAGERS.— 
(1) REQUIREMENT FOR STUDY.—Not later than 
30 days after the date of the enactment of this Act, 
the Secretary of Defense shall enter into a contract 
with an independent research entity described in 
paragraph (2) to carry out a comprehensive study of 
incentives for Department of Defense civilian and 
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military program managers for major defense acqui-
sition programs, including— 
(A) additional pay options for program 
managers to provide incentives to senior civilian 
employees and military officers to accept and 
remain in program manager roles; 
(B) a financial incentive structure to re-
ward program managers for delivering capabili-
ties on budget and on time; and 
(C) a comparison between financial and 
non-financial incentive structures for program 
managers in the Department of Defense and an 
appropriate comparison group of private indus-
try companies. 
(2) INDEPENDENT
RESEARCH
ENTITY.—The 
entity described in this subsection is an independent 
research entity that is a not-for-profit entity or a 
federally funded research and development center 
with appropriate expertise and analytical capability. 
(3) REPORTS.— 
(A) TO SECRETARY.—Not later than nine 
months after the date of the enactment of this 
Act, the independent research entity shall pro-
vide to the Secretary a report containing— 
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(i) the results of the study required by 
paragraph (1); and 
(ii) such recommendations to improve 
the financial incentive structure of pro-
gram managers for major defense acquisi-
tion programs as the independent research 
entity considers to be appropriate. 
(B) TO
CONGRESS.—Not later than 30 
days after receipt of the report under subpara-
graph (A), the Secretary of Defense shall sub-
mit such report, together with any additional 
views or recommendations of the Secretary, to 
the congressional defense committees. 
SEC. 822. IMPROVEMENTS TO THE HIRING AND TRAINING 
OF THE ACQUISITION WORKFORCE. 
(a) USE OF FUNDS FROM THE DEFENSE ACQUISI-
TION WORKFORCE DEVELOPMENT FUND TO PAY SALA-
RIES OF PERSONNEL TO MANAGE THE FUND.— 
(1) IN GENERAL.—Subsection 1705(e) of title 
10, United States Code, is amended— 
(A) in paragraph (1)— 
(i) by inserting ‘‘(A)’’ before ‘‘Subject 
to the provisions of this subsection’’; and 
(ii) by adding at the end the following 
new subparagraph: 
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‘‘(B) Amounts in the Fund also may be used to 
pay salaries of personnel at the Office of the Sec-
retary of Defense, military departments, and De-
fense Agencies to manage the Fund.’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (C); 
(ii) by striking the period and insert-
ing ‘‘; and’’ at the end of subparagraph 
(D); and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) describing the amount from the Fund 
that may be used to pay salaries of personnel 
at the Office of the Secretary of Defense, mili-
tary departments, and Defense Agencies to 
manage the Fund and the circumstances under 
which such amounts may be used for such pur-
pose.’’. 
(2) GUIDANCE.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall issue, and submit to the congres-
sional defense committees, the policy guidance re-
quired by subparagraph (E) of section 1705(e)(3) of 
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title 10, United States Code, as added by paragraph 
(1). 
(b) COMPTROLLER GENERAL REVIEW OF EFFEC-
TIVENESS OF HIRING AND RETENTION FLEXIBILITIES 
FOR ACQUISITION WORKFORCE PERSONNEL.— 
(1) IN
GENERAL.—Not later than June 30, 
2019, the Comptroller General of the United States 
shall submit to the congressional defense committees 
a report on the effectiveness of hiring and retention 
flexibilities for the acquisition workforce. 
(2) ELEMENTS.—The report under this sub-
section shall include the following: 
(A) A determination of the extent to which 
the Department of Defense experiences chal-
lenges with recruitment and retention of the ac-
quisition workforce, such as post-employment 
restrictions. 
(B) A description of the hiring and reten-
tion flexibilities available to the Department to 
fill civilian acquisition positions and the extent 
to which the Department has used the flexibili-
ties available to it to target critical or under-
staffed career fields. 
(C) A determination of the extent to which 
the Department has the necessary data on its 
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use of hiring and retention flexibilities for the 
civilian acquisition workforce to strategically 
manage the use of such flexibilities. 
(D) An identification of the factors that 
affect the use of hiring and retention flexibili-
ties for the civilian acquisition workforce. 
(E) Recommendations for any necessary 
changes to the hiring and retention flexibilities 
available to the Department to fill civilian ac-
quisition positions. 
(F) A description of the flexibilities avail-
able to the Department to remove underper-
forming members of the acquisition workforce 
and the extent to which any such flexibilities 
are used. 
(c) ASSESSMENT AND REPORT REQUIRED ON BUSI-
NESS-RELATED TRAINING FOR THE ACQUISITION WORK-
FORCE.— 
(1) ASSESSMENT.—The Under Secretary of De-
fense for Acquisition and Sustainment shall conduct 
an assessment of the following: 
(A) The effectiveness of industry certifi-
cations and other industry training programs, 
including fellowships, available to defense acqui-
sition workforce personnel. 
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(B) Gaps in knowledge of industry oper-
ations, industry motivation, and business acu-
men in the acquisition workforce. 
(2) REPORT.—Not later than December 31, 
2018, the Under Secretary shall submit to the Com-
mittees on Armed Services of the Senate and the 
House of Representatives a report containing the re-
sults of the assessment conducted under this sub-
section. 
(3) ELEMENTS.—The assessment and report 
under paragraphs (1) and (2) shall address the fol-
lowing: 
(A) Current sources of training and career 
development opportunities, industry rotations, 
and other career development opportunities re-
lated to knowledge of industry operations, in-
dustry motivation, and business acumen for 
each acquisition position, as designated under 
section 1721 of title 10, United States Code. 
(B) Gaps in training, industry rotations, 
and other career development opportunities re-
lated to knowledge of industry operations, in-
dustry motivation, and business acumen for 
each such acquisition position. 
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(C) Plans to address those gaps for each 
such acquisition position. 
(D) Consideration of the role industry- 
taught classes and classes taught at educational 
institutions outside of the Defense Acquisition 
University could play in addressing gaps. 
(d) COMPTROLLER GENERAL REVIEW OF ACQUISI-
TION TRAINING FOR NON-ACQUISITION WORKFORCE PER-
SONNEL.— 
(1) IN
GENERAL.—Not later than June 30, 
2019, the Comptroller General of the United States 
shall submit to the congressional defense committees 
a report on acquisition-related training for personnel 
working on acquisitions but not considered to be 
part of the acquisition workforce (as defined in sec-
tion 101(18) of title 10, United States Code) (here-
after in this subsection referred to as ‘‘non-acquisi-
tion workforce personnel’’). 
(2) ELEMENTS.—The report shall address the 
following: 
(A) The extent to which non-acquisition 
workforce personnel play a significant role in 
defining requirements, conducting market re-
search, participating in source selection and 
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contract negotiation efforts, and overseeing con-
tract performance. 
(B) The extent to which the Department is 
able to identify and track non-acquisition work-
force personnel performing the roles identified 
in subparagraph (A). 
(C) The extent to which non-acquisition 
workforce personnel are taking acquisition 
training. 
(D) The extent to which the Defense Ac-
quisition Workforce Development Fund has 
been used to provide acquisition training to 
non-acquisition workforce personnel. 
(E) A description of sources of funding 
other than the Fund that are available to and 
used by the Department to provide non-acquisi-
tion workforce personnel with acquisition train-
ing. 
(F) The extent to which additional acquisi-
tion training is needed for non-acquisition 
workforce personnel, including the types of 
training needed, the positions that need the 
training, and any challenges to delivering nec-
essary additional training. 
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(e) BRIEFING ON IMPROVEMENTS TO THE DEFENSE 
CONTRACT AUDIT AGENCY WORKFORCE.— 
(1) BRIEFING REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the 
Director of the Defense Contract Audit Agency, in 
consultation with the Under Secretary of Defense 
(Comptroller), shall provide a briefing to the Com-
mittees on Armed Services of the Senate and the 
House of Representatives. 
(2) ELEMENTS.—The briefing required by 
paragraph (1) shall address the following: 
(A) The current education, certifications, 
and qualifications of the Defense Contract 
Audit Agency workforce, by supervisory and 
non-supervisory levels and type of position. 
(B) Shortfalls (if any) in education, quali-
fication, or training in the Defense Contract 
Audit Agency workforce, by supervisory and 
non-supervisory levels and type of position, and 
the reasons for those shortfalls. 
(C) The link (if any) between Defense 
Contract Audit Agency workforce skill and ex-
perience gaps and the Agency’s backlog of au-
dits. 
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(D) The link (if any) between the effective-
ness of Defense Contract Audit Agency regional 
directors and their education, certifications, and 
qualifications. 
(E) The number of Defense Contract 
Audit Agency auditors who have relevant pri-
vate sector experience, including from industry 
exchanges while at the Defense Contract Audit 
Agency and from prior employment experiences, 
and the perspective of the Defense Contract 
Audit Agency on the benefits of those experi-
ences. 
(F) Ongoing efforts and future plans by 
the Defense Contract Audit Agency to improve 
the professionalization of its audit workforce, 
including changes in hiring, training, required 
certifications or qualifications, compensation 
structure, and increased opportunities for in-
dustry exchanges or rotations. 
SEC. 823. EXTENSION AND MODIFICATIONS TO ACQUISI-
TION DEMONSTRATION PROJECT. 
(a) EXTENSION.—Section 1762(g) of title 10, United 
States Code, is amended by striking ‘‘December 31, 2020’’ 
and inserting ‘‘December 31, 2023’’. 
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(b) IMPLEMENTATION
STRATEGY
FOR
IMPROVE-
MENTS IN ACQUISITION DEMONSTRATION PROJECT.— 
(1) STRATEGY
REQUIRED.—The Secretary of 
Defense shall develop an implementation strategy to 
address areas for improvement in the demonstration 
project required by section 1762 of title 10, United 
States Code, as identified in the second assessment 
of such demonstration project required by section 
1762(e) of such title. 
(2) ELEMENTS.—The strategy shall include the 
following elements: 
(A) Actions that have been or will be taken 
to assess whether the flexibility to set starting 
salaries at different levels is being used appro-
priately by supervisors and managers to com-
pete effectively for highly skilled and motivated 
employees. 
(B) Actions that have been or will be taken 
to assess reasons for any disparities in career 
outcomes across race and gender for employees 
in the demonstration project. 
(C) Actions that have been or will be taken 
to strengthen the link between employee con-
tribution and compensation for employees in the 
demonstration project. 
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(D) Actions that have been or will be taken 
to enhance the transparency of the pay system 
for employees in the demonstration project. 
(E) A time frame and individual respon-
sible for each action identified under subpara-
graphs (A) through (D). 
(3) BRIEFING REQUIRED.—Not later than one 
year after the date of the enactment of this Act, the 
Secretary of Defense shall provide a briefing to the 
Committees on Armed Services of the Senate and 
House of Representatives and the Committee on 
Oversight and Government Reform of the House of 
Representatives on the implementation strategy re-
quired by paragraph (1). 
SEC. 824. ACQUISITION POSITIONS IN THE OFFICES OF THE 
SECRETARIES OF THE MILITARY DEPART-
MENTS. 
(a) OFFICE OF THE SECRETARY OF THE ARMY MAX-
IMUM NUMBER OF PERSONNEL.—Section 3014(f) of title 
10, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(6) The limitation in paragraph (1) may be exceeded 
if a civilian employee is assigned on permanent duty in 
the Office of the Secretary of the Army or on the Army 
Staff and— 
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‘‘(A) the employee was employed immediately 
preceding that assignment either— 
‘‘(i) in a position within the Office of the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics that had responsi-
bility for oversight of acquisition programs or 
processes prior to February 1, 2018, and that 
was determined to be no longer needed as a re-
sult of section 901 of the National Defense Au-
thorization Act for Fiscal Year 2017 (Public 
Law 114-328; 130 Stat. 2339) and the amend-
ments made by that section; or 
‘‘(ii) in a Joint Staff position that sup-
ported the Joint Requirements Oversight Coun-
cil prior to December 23, 2016, and that was 
determined to be no longer needed as a result 
of section 925 of the National Defense Author-
ization Act for Fiscal Year 2017 (Public Law 
114-328; 130 Stat. 2359) and the amendments 
made by that section; and 
‘‘(B) the position described in subparagraph 
(A) is not filled by the Office of the Under Secretary 
of Defense for Acquisition and Sustainment or the 
Joint Staff after the employee’s permanent duty as-
signment.’’. 
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(b) OFFICE OF THE SECRETARY OF THE NAVY MAX-
IMUM NUMBER OF PERSONNEL.—Section 5014(f) of title 
10, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(6) The limitation in paragraph (1) may be exceeded 
if a civilian employee is assigned on permanent duty in 
the Department of the Navy or assigned or detailed to 
permanent duty in the Office of the Secretary of the Navy, 
the Office of Chief of Naval Operations, or the Head-
quarters, Marine Corps, and— 
‘‘(A) the employee was employed immediately 
preceding that assignment either— 
‘‘(i) in a position within the Office of the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics that had responsi-
bility for oversight of acquisition programs or 
processes prior to February 1, 2018, and that 
was determined to be no longer needed as a re-
sult of section 901 of the National Defense Au-
thorization Act for Fiscal Year 2017 (Public 
Law 114-328; 130 Stat. 2339) and the amend-
ments made by that section; or 
‘‘(ii) in a Joint Staff position that sup-
ported the Joint Requirements Oversight Coun-
cil prior to December 23, 2016, and that was 
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determined to be no longer needed as a result 
of section 925 of the National Defense Author-
ization Act for Fiscal Year 2017 (Public Law 
114-328; 130 Stat. 2359) and the amendments 
made by that section; and 
‘‘(B) the position described in subparagraph 
(A) is not filled by the Office of the Under Secretary 
of Defense for Acquisition and Sustainment or the 
Joint Staff after the employee’s permanent duty as-
signment.’’. 
(c) OFFICE OF THE SECRETARY OF THE AIR FORCE 
MAXIMUM NUMBER OF PERSONNEL.—Section 8014(f) of 
title 10, United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(6) The limitation in paragraph (1) may be exceeded 
if a civilian employee is assigned on permanent duty in 
the Office of the Secretary of the Air Force or on the Air 
Staff and— 
‘‘(A) the employee was employed immediately 
preceding that assignment either— 
‘‘(i) in a position within the Office of the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics that had responsi-
bility for oversight of acquisition programs or 
processes prior to February 1, 2018, and that 
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was determined to be no longer needed as a re-
sult of section 901 of the National Defense Au-
thorization Act for Fiscal Year 2017 (Public 
Law 114-328; 130 Stat. 2339) and the amend-
ments made by that section; or 
‘‘(ii) in a Joint Staff position that sup-
ported the Joint Requirements Oversight Coun-
cil prior to December 23, 2016, and that was 
determined to be no longer needed as a result 
of section 925 of the National Defense Author-
ization Act for Fiscal Year 2017 (Public Law 
114-328; 130 Stat. 2359) and the amendments 
made by that section; and 
‘‘(B) the position described in subparagraph 
(A) is not filled by the Office of the Under Secretary 
of Defense for Acquisition and Sustainment or the 
Joint Staff after the employee’s permanent duty as-
signment.’’. 
PART IV—TRANSPARENCY IMPROVEMENTS 
SEC. 831. TRANSPARENCY OF DEFENSE BUSINESS SYSTEM 
DATA. 
(a) ESTABLISHMENT
OF
COMMON
ENTERPRISE 
DATA STRUCTURES.—Section 2222 of title 10, United 
States Code, is amended— 
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(1) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(7) Policy requiring that any data contained in 
a defense business system is an asset of the Depart-
ment of Defense, and that such data should be made 
readily available to members of the Office of the 
Secretary of Defense, the Joint Staff, and the mili-
tary departments (except as otherwise provided by 
law or regulation).’’; 
(2) in subsection (e), by adding at the end the 
following new paragraph: 
‘‘(5) 
COMMON
ENTERPRISE
DATA
STRUC-
TURES.—(A) The defense business enterprise archi-
tecture shall include one or more common enterprise 
data structures which can be used to code data that 
are automatically extracted from the relevant de-
fense business systems to facilitate Department of 
Defense-wide analysis and management of such 
data. 
‘‘(B) The Deputy Chief Management Officer 
shall— 
‘‘(i) in consultation with the Defense Busi-
ness Council established under subsection (f), 
develop one or more common enterprise data 
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structures and an associated data governance 
process; and 
‘‘(ii) have primary decision-making author-
ity with respect to the development of any such 
common enterprise data structure. 
‘‘(C) The Director of Cost Assessment and Pro-
gram Evaluation shall— 
‘‘(i) in consultation with the Defense Busi-
ness Council established under subsection (f), 
document and maintain any common enterprise 
data structure developed under subparagraph 
(B); 
‘‘(ii) extract data from defense business 
systems using the appropriate common data en-
terprise structure on a specified schedule; 
‘‘(iii) provide access to such data to the 
Office of the Secretary of Defense, the Joint 
Staff, and the military departments (except as 
otherwise provided by law or regulation) on a 
specified schedule developed in consultation 
with the Defense Business Council established 
under subsection (f); and 
‘‘(iv) have primary decision-making author-
ity with respect to the maintenance of any such 
common enterprise data structure. 
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‘‘(D) Common enterprise data structures shall 
be established and maintained for the following 
types of data of the Department of Defense: 
‘‘(i) An accounting of expenditures of the 
Department of Defense, set forth separately for 
each type of expenditure. 
‘‘(ii) Data from the future-years defense 
program established under section 221 and 
budget data. 
‘‘(iii) Acquisition cost data and earned 
value management data. 
‘‘(iv) Operating and support costs for 
weapon systems, including data on maintenance 
procedures conducted on each major weapon 
system (as defined in section 2379 of this title). 
‘‘(v) Data on contracts and task orders of 
the Department of Defense, including goods 
and services acquired under such contracts or 
task orders and associated obligations and ex-
penditures. 
‘‘(E) The Secretary of Defense, the Chairman 
of the Joint Chiefs of Staff, the Secretaries of the 
military departments, the Commanders of the com-
batant commands, the heads of the Defense Agen-
cies, the heads of the Department of Defense Field 
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Activities, and the heads of all other organizations of 
the Department of Defense shall provide access to 
the relevant defense business system of such depart-
ment, combatant command, Defense Agency, Field 
Activity, or organization, as applicable, and data ex-
tracted from such system, for purposes of automati-
cally populating data sets coded with common enter-
prise data structures.’’; 
(3) in subsection (f)(2), by adding at the end 
the following new clause: 
‘‘(iv) The Director of Cost Assessment 
and Program Evaluation with respect to 
common enterprise data structures.’’; and 
(4) in subsection (i), by adding at the end the 
following new paragraphs: 
‘‘(10) COMMON
ENTERPRISE
DATA
STRUC-
TURE.—The term ‘common enterprise data struc-
ture’ means a mapping and organization of data 
from defense business systems into a common data 
set. 
‘‘(11) DATA GOVERNANCE PROCESS.—The term 
‘data governance process’ means a system to manage 
the timely Department of Defense-wide sharing of 
data described under paragraph (5)(A).’’. 
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(b) ADDITIONAL DUTIES OF THE DIRECTOR OF COST 
ASSESSMENT
AND
PROGRAM
EVALUATION.—Section 
139a(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph: 
‘‘(9) Maintenance of common enterprise data 
structures established pursuant to section 2222 of 
this title, including establishing and maintaining ac-
cess to any data contained in a defense business sys-
tem (as defined in such section) and used in a com-
mon enterprise data structure, as determined appro-
priate by the Secretary of Defense or the Director 
of Cost Assessment and Program Evaluation.’’. 
(c) IMPLEMENTATION PLAN FOR COMMON ENTER-
PRISE DATA STRUCTURES.— 
(1) PLAN
REQUIRED.—Not later than six 
months after the date of the enactment of this Act, 
the Deputy Chief Management Officer and the Di-
rector of Cost Assessment and Program Evaluation 
shall jointly develop a plan to implement the require-
ments of subsection (a). 
(2) ELEMENTS.—At a minimum, the implemen-
tation plan required by paragraph (1) shall include 
the following elements: 
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(A) The major tasks required to implement 
the requirements of subsection (a) and the rec-
ommended time frames for each task. 
(B) The estimated resources required to 
complete each major task identified pursuant to 
subparagraph (A). 
(C) Any challenges associated with each 
major task identified pursuant to subparagraph 
(A) and related steps to mitigate such chal-
lenge. 
(D) A description of how data security 
issues will be appropriately addressed in the im-
plementation of the requirements of subsection 
(a). 
(3) SUBMISSION TO CONGRESS.—Upon comple-
tion of the plan required under paragraph (1), the 
Deputy Chief Management Officer and the Director 
of Cost Assessment and Program Evaluation shall 
submit such plan to the congressional defense com-
mittees. 
SEC. 832. MAJOR DEFENSE ACQUISITION PROGRAMS: DIS-
PLAY OF BUDGET INFORMATION. 
(a) IN GENERAL.—Chapter 144 of title 10, United 
States Code, is amended by inserting after section 2433a 
the following new section: 
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‘‘§ 2434. Major defense acquisition programs: display 
of budget information 
‘‘(a) IN GENERAL.—In the defense budget materials 
for fiscal year 2020 and each subsequent fiscal year, the 
Secretary of Defense shall ensure that the funding re-
quirements listed in subsection (b) are displayed sepa-
rately for major defense acquisition programs, as defined 
in section 2340 of title 10, United States Code. 
‘‘(b) REQUIREMENTS FOR BUDGET DISPLAY.—The 
budget justification display for a fiscal year shall include 
the funding requirement for each major defense acquisi-
tion program, including all sources of appropriations— 
‘‘(1) for developmental test and evaluation; 
‘‘(2) for operational test and evaluation; 
‘‘(3) for the purchase of cost data from contrac-
tors; and 
‘‘(4) for the purchase or license of technical 
data. 
‘‘(c) DEFINITIONS.—In this section, the terms ‘budg-
et’ and ‘defense budget materials’ have the meaning given 
those terms in section 234 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2433a following new 
item: 
‘‘2434. Major defense acquisition programs: display of budget information.’’. 
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SEC. 833. ENHANCEMENTS TO TRANSPARENCY IN TEST 
AND EVALUATION PROCESSES AND DATA. 
(a) ADDITIONAL REQUIREMENTS RELATING TO DES-
IGNATION
OF
A MAJOR DEFENSE ACQUISITION PRO-
GRAM.—Section 139 of title 10, United States Code, is 
amended— 
(1) in subsection (a)(2)(B), by inserting before 
the period at the end the following: ‘‘and in accord-
ance with subsection (l).’’; 
(2) by adding at the end the following new sub-
section: 
‘‘(l) For purposes of subsection (a)(2)(B), before des-
ignating a program that is not a major defense acquisition 
program for the purposes of section 2430 of this title as 
a major defense acquisition program for the purposes of 
this section, the Director shall provide in writing to the 
Under Secretary of Defense for Acquisition and 
Sustainment, and the test and evaluation executive of the 
military department or departments executing the pro-
gram, the specific circumstances of the program that led 
to the designation decision.’’; and 
(3) by adding at the end of subsection (h)(4) 
the following: ‘‘The report shall also include a brief 
statement of the rationale for placing on the over-
sight list of the Director each program that is not 
a major defense acquisition program for the pur-
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poses of section 2430 of this title but has been des-
ignated as a major defense acquisition program for 
the purposes of this section.’’. 
(b) CONSIDERATION OF LEGACY ITEMS OR COMPO-
NENTS IN OPERATIONAL TEST AND EVALUATION RE-
PORTS.—Section 2399(b)(2) of title 10, United States 
Code, is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A)(ii); 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) a description of the performance of the 
items or components tested in relation to comparable 
legacy items or components, if such items or compo-
nents exist and relevant data are available without 
requiring additional testing; and’’. 
(c) OPPORTUNITY
FOR
MILITARY
DEPARTMENT 
COMMENTS ON ANNUAL REPORT ON OPERATIONAL TEST 
AND EVALUATION.—Section 139(h) of title 10, United 
States Code, is amended— 
(1) by redesignating paragraph (5) as para-
graph (6), and in that paragraph by striking ‘‘and 
the Secretaries of the military departments’’; and 
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(2) by inserting after paragraph (4) the fol-
lowing new paragraph (5): 
‘‘(5) Within 45 days after the submission of an 
annual report by the Director to Congress, the Sec-
retaries of the military departments may each sub-
mit a report to the congressional defense committees 
addressing any concerns related to information in-
cluded in the annual report, or providing updated or 
additional information as appropriate.’’. 
(d) GUIDELINES FOR COLLECTION OF COST DATA 
ON TEST AND EVALUATION.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the Di-
rector of Operational Test and Evaluation and the 
senior Department of Defense official with responsi-
bility for developmental testing shall jointly develop 
policies, procedures, guidance, and a collection meth-
od to ensure that consistent, high quality data are 
collected on the full range of estimated and actual 
developmental, live fire, and operational testing costs 
for major defense acquisition programs. Data on es-
timated and actual developmental, live fire, and 
operational testing costs shall be maintained in an 
electronic database maintained by the Director for 
Cost Assessment and Program Evaluation. 
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(2) CONCURRENCE
AND
COORDINATION.—In 
carrying out paragraph (1), the Director of Oper-
ational Test and Evaluation and the senior Depart-
ment of Defense official with responsibility for devel-
opmental testing shall obtain the concurrence of the 
Director for Cost Assessment and Program Evalua-
tion and shall coordinate with the Director of the 
Test Resource Management Center and the Secre-
taries of the military departments. 
(3) MAJOR
DEFENSE
ACQUISITION
PROGRAM 
DEFINED.—In this section, the term ‘‘major defense 
acquisition program’’ has the meaning provided in 
section 2430 of title 10, United States Code. 
(e) REPORT ON ENTERPRISE APPROACH TO TEST 
AND EVALUATION KNOWLEDGE MANAGEMENT.— 
(1) REPORT REQUIRED.—Within one year after 
the date of the enactment of this Act, the Director 
of the Test Resource Management Center and the 
senior Department of Defense official with responsi-
bility for developmental testing shall provide to the 
congressional defense committees a report on the de-
velopment of an approach for managing test and 
evaluation knowledge across the entire Department 
of Defense. 
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(2) ELEMENTS.—The report required by para-
graph (1) shall include the following elements: 
(A) The detailed concepts, requirements, 
technologies, methodologies, and architecture 
necessary for an enterprise approach to knowl-
edge management for test and evaluation, in-
cluding data, data analysis tools, and modeling 
and simulation capabilities. 
(B) Resources needed to develop and adopt 
an enterprise approach to knowledge manage-
ment for test and evaluation. 
(C) Roles and responsibilities of various 
Department of Defense entities to develop and 
adopt an enterprise approach to knowledge 
management for test and evaluation. 
(D) Time frames required to develop and 
adopt an enterprise approach to knowledge 
management for test and evaluation. 
(E) A description of pilot studies ongoing 
at the time of the date of the enactment of this 
Act or previously conducted related to devel-
oping an enterprise approach to test and eval-
uation knowledge management, including re-
sults of the pilot studies (if available) and les-
sons learned. 
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Subtitle B—Streamlining of De-
fense Acquisition Statutes and 
Regulations 
SEC. 841. MODIFICATIONS TO THE ADVISORY PANEL ON 
STREAMLINING AND CODIFYING ACQUISI-
TION REGULATIONS. 
(a) EXTENSION OF DATE FOR FINAL REPORT.— 
(1) TRANSMITTAL OF PANEL FINAL REPORT.— 
Subsection (e)(1) of section 809 of the National De-
fense Authorization Act for Fiscal Year 2016 (Pub-
lic Law 114–92; 129 Stat. 889), as amended by sec-
tion 863(d) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 
Stat. 2303), is amended— 
(A) by striking ‘‘Not later than two years 
after the date on which the Secretary of De-
fense establishes the advisory panel’’ and insert-
ing ‘‘Not later than January 15, 2019’’; and 
(B) by striking ‘‘the Secretary’’ and insert-
ing ‘‘the Secretary of Defense and the congres-
sional defense committees’’. 
(2) SECRETARY OF DEFENSE ACTION ON FINAL 
REPORT.—Subsection (e)(4) of such section is 
amended— 
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(A) by striking ‘‘Not later than 30 days’’ 
and inserting ‘‘Not later than 60 days’’; and 
(B) by striking ‘‘the final report, together 
with such comments as the Secretary deter-
mines appropriate,’’ and inserting ‘‘such com-
ments as the Secretary determines appro-
priate’’. 
(b) TERMINATION OF PANEL.—Such section is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(g) TERMINATION OF PANEL.—The advisory panel 
shall terminate 180 days after the date on which the final 
report of the panel is transmitted pursuant to subsection 
(e)(1) or on such later date as may be specified by the 
Secretary of Defense.’’. 
SEC. 842. EXTENSION OF MAXIMUM DURATION OF FUEL 
STORAGE CONTRACTS. 
(a) EXTENSION.—Section 2922(b) of title 10, United 
States Code, is amended by striking ‘‘20 years’’ and in-
serting ‘‘30 years’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to contracts entered 
into on or after the date of the enactment of this Act and 
may be applied to a contract entered into before that date 
if the total contract period under the contract (including 
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options) has not expired as of the date of any extension 
of such contract period by reason of such amendment. 
SEC. 843. EXCEPTION FOR BUSINESS OPERATIONS FROM 
REQUIREMENT TO ACCEPT $1 COINS. 
Paragraph (1) of section 5112(p) of title 31, United 
States Code, is amended by adding at the end the fol-
lowing new flush sentence: 
‘‘This paragraph does not apply with respect to busi-
ness operations conducted by any entity under a 
contract with an agency or instrumentality of the 
United States, including any nonappropriated fund 
instrumentality established under title 10, United 
States Code.’’. 
SEC. 844. REPEAL OF EXPIRED PILOT PROGRAM. 
Section 807(c) of Public Law 104–106 (10 U.S.C. 
2401a note) is repealed. 
Subtitle C—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 851. LIMITATION ON UNILATERAL DEFINITIZATION. 
(a) LIMITATION.—Section 2326 of title 10, United 
States Code, is amended— 
(1) by redesignating subsections (c), (d), (e), 
(f), (g), (h), and (i) as subsections (d), (e), (f), (g), 
(h), (i), and (j) respectively; and 
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(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) LIMITATION ON UNILATERAL DEFINITIZATION 
BY
CONTRACTING
OFFICER.—With respect to any 
undefinitized contractual action with a value greater than 
$1,000,000,000, if agreement is not reached on contrac-
tual terms, specifications, and price within the period or 
by the date provided in subsection (b)(1), the contracting 
officer may not unilaterally definitize those terms, speci-
fications, or price over the objection of the contractor 
until— 
‘‘(1) the head of the agency approves the 
definitization in writing; 
‘‘(2) the contracting officer provides a copy of 
the written approval to the contractor; and 
‘‘(3) a period of 30 calendar days has elapsed 
after the written approval is provided to the con-
tractor.’’. 
(b) CONFORMING AMENDMENT.—Section 2326(b)(3) 
of such title is amended by striking ‘‘subsection (g)’’ and 
inserting ‘‘subsection (h)’’. 
(c) CONFORMING REGULATIONS.—Not later than 
120 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise the Department of De-
fense Supplement to the Federal Acquisition Regulation 
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to implement section 2326 of title 10, United States Code, 
as amended by this section. 
SEC. 852. CODIFICATION OF REQUIREMENTS PERTAINING 
TO ASSESSMENT, MANAGEMENT, AND CON-
TROL OF OPERATING AND SUPPORT COSTS 
FOR MAJOR WEAPON SYSTEMS. 
(a) CODIFICATION AND AMENDMENT.— 
(1) IN
GENERAL.—Chapter 137 of title 10, 
United States Code, is amended by inserting after 
section 2337 the following new section: 
‘‘§ 2337a. Assessment, management, and control of op-
erating and support costs for major 
weapon systems 
‘‘(a) GUIDANCE REQUIRED.—The Secretary of De-
fense shall issue and maintain guidance on actions to be 
taken to assess, manage, and control Department of De-
fense costs for the operation and support of major weapon 
systems. 
‘‘(b) ELEMENTS.—The guidance required by sub-
section (a) shall, at a minimum— 
‘‘(1) be issued in conjunction with the com-
prehensive guidance on life-cycle management and 
the development and implementation of product sup-
port strategies for major weapon systems required 
by section 2337 of this title; 
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‘‘(2) require the military departments to retain 
each estimate of operating and support costs that is 
developed at any time during the life cycle of a 
major weapon system, together with supporting doc-
umentation used to develop the estimate; 
‘‘(3) require the military departments to update 
estimates of operating and support costs periodically 
throughout the life cycle of a major weapon system, 
to determine whether preliminary information and 
assumptions remain relevant and accurate, and iden-
tify and record reasons for variances; 
‘‘(4) establish policies and procedures for the 
collection, organization, maintenance, and avail-
ability of standardized data on operating and sup-
port costs for major weapon systems in accordance 
with section 2222 of this title; 
‘‘(5) establish standard requirements for the 
collection and reporting of data on operating and 
support costs for major weapon systems by contrac-
tors performing weapon system sustainment func-
tions in an appropriate format, and develop contract 
clauses to ensure that contractors comply with such 
requirements; 
‘‘(6) require the military departments— 
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‘‘(A) to collect and retain data from oper-
ational and developmental testing and evalua-
tion on the reliability and maintainability of 
major weapon systems; and 
‘‘(B) to use such data to inform system de-
sign decisions, provide insight into sustainment 
costs, and inform estimates of operating and 
support costs for such systems; 
‘‘(7) require the military departments to ensure 
that sustainment factors are fully considered at key 
life cycle management decision points and that ap-
propriate measures are taken to reduce operating 
and support costs by influencing system design early 
in development, developing sound sustainment strat-
egies, and addressing key drivers of costs; 
‘‘(8) require the military departments to con-
duct an independent logistics assessment of each 
major weapon system prior to key acquisition deci-
sion points (including milestone decisions) to identify 
features that are likely to drive future operating and 
support costs, changes to system design that could 
reduce such costs, and effective strategies for man-
aging such costs; 
‘‘(9) include— 
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‘‘(A) reliability metrics for major weapon 
systems; and 
‘‘(B) requirements on the use of metrics 
under subparagraph (A) as triggers— 
‘‘(i) to conduct further investigation 
and analysis into drivers of those metrics; 
and 
‘‘(ii) to develop strategies for improv-
ing reliability, availability, and maintain-
ability of such systems at an affordable 
cost; and 
‘‘(10) require the military departments to con-
duct periodic reviews of operating and support costs 
of major weapon systems after such systems achieve 
initial operational capability to identify and address 
factors resulting in growth in operating and support 
costs and adapt support strategies to reduce such 
costs. 
‘‘(c) RETENTION OF DATA ON OPERATING AND SUP-
PORT COSTS.— 
‘‘(1) IN GENERAL.—The Director of Cost As-
sessment and Program Evaluation shall be respon-
sible for developing and maintaining a database on 
operating and support estimates, supporting docu-
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mentation, and actual operating and support costs 
for major weapon systems. 
‘‘(2) SUPPORT.—The Secretary of Defense shall 
ensure that the Director, in carrying out such re-
sponsibility— 
‘‘(A) promptly receives the results of all 
cost estimates and cost analyses conducted by 
the military departments with regard to oper-
ating and support costs of major weapon sys-
tems; 
‘‘(B) has timely access to any records and 
data of the military departments (including 
classified and proprietary information) that the 
Director considers necessary to carry out such 
responsibility; and 
‘‘(C) with the concurrence of the Under 
Secretary of Defense for Acquisition and 
Sustainment, may direct the military depart-
ments to collect and retain information nec-
essary to support the database. 
‘‘(d) MAJOR WEAPON SYSTEM DEFINED.—In this 
section, the term ‘major weapon system’ has the meaning 
given that term in section 2379(f) of title 10, United 
States Code.’’. 
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 137 of such title 
is amended by adding after the item relating to sec-
tion 2337 the following new item: 
‘‘2337a. Assessment, management, and control of operating and support costs 
for major weapon systems.’’. 
(b) REPEAL OF SUPERSEDED SECTION.— 
(1) REPEAL.—Section 832 of the National De-
fense Authorization Act for Fiscal Year 2012 (Pub-
lic Law 112–81; 10 U.S.C. 2430 note) is repealed. 
(2) 
CONFORMING
AMENDMENT.—Section 
2441(c) of title 10, United States Code, is amended 
by striking ‘‘section 2337 of this title’’ and all that 
follows through the period and inserting ‘‘sections 
2337 and 2337a of this title.’’. 
SEC. 853. USE OF PROGRAM INCOME BY ELIGIBLE ENTI-
TIES THAT CARRY OUT PROCUREMENT TECH-
NICAL ASSISTANCE PROGRAMS. 
Section 2414 of title 10, United States Code, is 
amended— 
(1) in the section heading, by striking ‘‘LIMI-
TATION’’ and inserting ‘‘FUNDING’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) USE OF PROGRAM INCOME.— 
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‘‘(1) An eligible entity that earned income in a 
specified fiscal year from activities carried out pur-
suant to a procurement technical assistance program 
funded under this chapter may expend an amount of 
such income not to exceed 25 percent of the cost of 
furnishing procurement technical assistance in such 
specified fiscal year, during the fiscal year following 
the specified fiscal year, to carry out a procurement 
technical assistance program funded under this 
chapter. 
‘‘(2) An eligible entity that does not enter into 
a cooperative agreement with the Secretary for a fis-
cal year— 
‘‘(A) shall notify the Secretary of the 
amount of any income the eligible entity carried 
over from the previous fiscal year; and 
‘‘(B) may retain an amount of such income 
equal to 10 percent of the value of assistance 
furnished by the Secretary under this section 
during the previous fiscal year. 
‘‘(3) In determining the value of assistance fur-
nished by the Secretary under this section for any 
fiscal year, the Secretary shall account for the 
amount of any income the eligible entity carried over 
from the previous fiscal year.’’. 
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SEC. 854. AMENDMENT TO SUSTAINMENT REVIEWS. 
Section 2441(a) of title 10, United States Code, is 
amended by adding at the end the following: ‘‘The Sec-
retary concerned shall make the memorandum and sup-
porting documentation for each sustainment review avail-
able to the Under Secretary of Defense for Acquisition and 
Sustainment within 30 days after the review is com-
pleted.’’. 
SEC. 855. CLARIFICATION TO OTHER TRANSACTION AU-
THORITY. 
(a) CLARIFICATION TO REQUIREMENT FOR WRITTEN 
DETERMINATIONS FOR PROTOTYPE PROJECTS.—Section 
2371b(a)(2) of title 10, United States Code, is amended 
by striking ‘‘for a prototype project’’ each place such term 
appears and inserting ‘‘for a transaction (for a prototype 
project)’’. 
(b) CLARIFICATION OF INCLUSION OF SMALL BUSI-
NESSES PARTICIPATING
IN SBIR OR STTR.—Section 
2371b(d)(1)(B) of title 10, United States Code, is amend-
ed by inserting ‘‘(including small businesses participating 
in a program described under section 9 of the Small Busi-
ness Act (15 U.S.C. 638))’’ after ‘‘small businesses’’. 
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SEC. 856. CLARIFYING THE USE OF LOWEST PRICE TECH-
NICALLY ACCEPTABLE SOURCE SELECTION 
PROCESS. 
Section 813 of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 
2270; 10 U.S.C. 2305 note) is amended— 
(1) in subsection (b)— 
(A) in paragraph (5), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (6), by striking the pe-
riod at the end and inserting a semicolon; and 
(C) by adding at the end the following new 
paragraphs: 
‘‘(7) the Department of Defense would realize 
minimal or no additional innovation or future tech-
nological advantage; and 
‘‘(8) with respect to a contract for procurement 
of goods, the goods procured are predominately ex-
pendable in nature, nontechnical, or have a short life 
expectancy or short shelf life.’’; and 
(2) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘or’’ at 
the end; 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
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(C) by adding at the end the following new 
paragraph: 
‘‘(4) electronic test and measurement equip-
ment for which calibration or repair costs are ex-
pected to substantially affect full life-cycle costs.’’. 
SEC. 857. AMENDMENT TO NONTRADITIONAL AND SMALL 
CONTRACTOR 
INNOVATION 
PROTOTYPING 
PROGRAM. 
Section 884(d) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 
2318; 10 U.S.C.2301 note) is amended— 
(1) by redesignating paragraph (9) as para-
graph (10); and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph (9): 
‘‘(9) Unmanned ground logistics and unmanned air 
logistics capabilities enhancement.’’. 
SEC. 858. MODIFICATION TO ANNUAL MEETING REQUIRE-
MENT 
OF 
CONFIGURATION 
STEERING 
BOARDS. 
Section 814(c)(4) of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 (Public 
Law 110–417; 122 Stat. 4529; 10 U.S.C. 2430 note) is 
amended by striking ‘‘year.’’ and inserting ‘‘year, unless 
the senior acquisition executive of the military department 
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concerned determines in writing that there have been no 
changes to the program requirements of a major defense 
acquisition program during the preceding year.’’. 
SEC. 859. CHANGE TO DEFINITION OF SUBCONTRACT IN 
CERTAIN CIRCUMSTANCES. 
Section 1906(c)(1) of title 41, United States Code, 
is amended by adding at the end the following: ‘‘The term 
does not include agreements entered into by a contractor 
for the supply of commodities that are intended for use 
in the performance of multiple contracts with the Govern-
ment and other parties and are not identifiable to any par-
ticular contract.’’. 
SEC. 860. AMENDMENT RELATING TO APPLICABILITY OF 
INFLATION ADJUSTMENTS. 
Subsection 1908(d) of title 41, United States Code, 
is amended by inserting before the period at the end the 
following: ‘‘, and shall apply, in the case of the procure-
ment of property or services by contract, to a contract, 
and any subcontract at any tier under the contract, in ef-
fect on that date without regard to the date of award of 
the contract or subcontract.’’. 
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SEC. 860A. EXEMPTION OF CERTAIN CONTRACTS FROM IN-
FLATION ADJUSTMENTS. 
Subparagraph (B) of section 1908(b)(2) of title 41, 
United States Code, is amended by inserting ‘‘3131 to 
3134,’’ after ‘‘sections’’. 
SEC. 860B. INCLUSION OF SBIR AND STTR PROGRAMS IN 
TECHNICAL ASSISTANCE. 
Subsection (c) of section 2418 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘issued under’’ and inserting the 
following: ‘‘issued— 
‘‘(1) under’’; 
(2) by striking ‘‘and on’’ and inserting ‘‘, and 
on’’; 
(3) by striking ‘‘requirements.’’ and inserting 
‘‘requirements; and’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) under section 9 of the Small Business Act 
(15 U.S.C. 638), and on compliance with those re-
quirements.’’. 
Subtitle D—Other Matters 
SEC. 861. EXEMPTION FROM DESIGN-BUILD SELECTION 
PROCEDURES. 
Subsection (d) of section 2305a of title 10, United 
States Code, is amended by striking the second and third 
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sentences and inserting the following: ‘‘If the contract 
value exceeds $4,000,000, the maximum number specified 
in the solicitation shall not exceed 5 unless— 
‘‘(1) the solicitation is issued pursuant to a in-
definite delivery-indefinite quantity contract for de-
sign-build construction; or 
‘‘(2)(A) the head of the contracting activity, 
delegable to a level no lower than the senior con-
tracting official within the contracting activity, ap-
proves the contracting officer’s justification with re-
spect to an individual solicitation that a number 
greater than 5 is in the Federal Government’s inter-
est; and 
‘‘(B) the contracting officer shall provide writ-
ten documentation of how a maximum number ex-
ceeding 5 is consistent with the purposes and objec-
tives of the two-phase selection procedures.’’. 
SEC. 862. REQUIREMENT THAT CERTAIN SHIP COMPO-
NENTS 
BE 
MANUFACTURED 
IN 
THE 
NA-
TIONAL 
TECHNOLOGY 
AND 
INDUSTRIAL 
BASE. 
(a) ADDITIONAL PROCUREMENT LIMITATION.—Sec-
tion 2534(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
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‘‘(6) COMPONENTS
FOR
AUXILIARY
SHIPS.— 
Subject to subsection (k), the following components: 
‘‘(A) 
Auxiliary 
equipment, 
including 
pumps, for all shipboard services. 
‘‘(B) Propulsion system components, in-
cluding engines, reduction gears, and propellers. 
‘‘(C) Shipboard cranes. 
‘‘(D) Spreaders for shipboard cranes.’’. 
(b) IMPLEMENTATION.—Such section is further 
amended by adding at the end the following new sub-
section: 
‘‘(k) IMPLEMENTATION OF AUXILIARY SHIP COMPO-
NENT LIMITATION.—Subsection (a)(6) applies only with 
respect to contracts awarded by the Secretary of a military 
department for new construction of an auxiliary ship after 
the date of the enactment of the National Defense Author-
ization Act for Fiscal Year 2018 using funds available for 
National Defense Sealift Fund programs or Shipbuilding 
and Conversion, Navy.’’. 
SEC. 863. PROCUREMENT OF AVIATION CRITICAL SAFETY 
ITEMS. 
Section 814(a) of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114-328; 130 Stat. 
2271; 10 U.S.C. 2302 note) is amended— 
(1) in paragraph (1)— 
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(A) by inserting ‘‘or an aviation critical 
safety item (as defined in section 2319(g) of 
this title)’’ after ‘‘personal protective equip-
ment’’; and 
(B) by inserting ‘‘equipment or’’ after 
‘‘failure of the’’; and 
(2) in paragraph (2), by inserting ‘‘or item’’ 
after ‘‘equipment’’. 
SEC. 864. MILESTONES AND TIMELINES FOR CONTRACTS 
FOR FOREIGN MILITARY SALES. 
(a) ESTABLISHMENT OF STANDARD TIMELINES FOR 
FOREIGN MILITARY SALES.—The Secretary of Defense 
shall establish specific milestones and standard timelines 
to achieve such milestones for a foreign military sale (as 
authorized under chapter 2 of the Arms Export Control 
Act (22 U.S.C. 2761 et seq.)), including milestones and 
timelines for actions that occur after a letter of offer and 
acceptance (as described in chapter 5 of the Security As-
sistance Management Manual of the Defense Security Co-
operation Agency) for such foreign military sale is com-
pleted. Such milestones and timelines— 
(1) may vary depending on the complexity of 
the foreign military sale; and 
(2) shall cover the period beginning on the date 
of receipt of a complete letter of request (as de-
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scribed in such chapter 5) from a foreign country 
and ending on the date of the final delivery of a de-
fense article or defense service sold through the for-
eign military sale. 
(b) SUBMISSIONS TO CONGRESS.— 
(1) QUARTERLY
NOTIFICATION.—During the 
period beginning on the date of the enactment of 
this Act and ending on December 31, 2021, the Sec-
retary shall submit to the congressional defense com-
mittees, the Committee on Foreign Affairs of the 
House of Representatives, and the Committee on 
Foreign Relations of the Senate, on a quarterly 
basis, a report that includes a list of each foreign 
military sale with a value greater than or equal to 
the dollar threshold for congressional notification 
under section 36 of the Arms Export Control Act 
(22 U.S.C. 2776)— 
(A) for which the final delivery of a de-
fense article or defense service has not been 
completed; and 
(B) that failed to meet a standard timeline 
to achieve a milestone as established under sub-
section (a). 
(2) ANNUAL REPORT.—Not later than Novem-
ber 1, 2019, and annually thereafter until December 
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31, 2021, the Secretary shall submit to the commit-
tees described in paragraph (1) a report that sum-
marizes— 
(A) the number, set forth separately by 
dollar value and milestone, of foreign military 
sales that met the standard timeline to achieve 
a milestone established under subsection (a) 
during the preceding fiscal year; and 
(B) the number, set forth separately by 
dollar value, milestone, and case development 
extenuating factor, of foreign military sales that 
failed to meet the standard timeline to achieve 
a milestone established under subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) DEFENSE ARTICLE; DEFENSE SERVICE.— 
The terms ‘‘defense article’’ and ‘‘defense service’’ 
have the meanings given those terms, respectively, in 
section 47 of the Arms Export Control Act (22 
U.S.C. 2794). 
(2) CASE
DEVELOPMENT
EXTENUATING
FAC-
TOR.—The term ‘‘case development extenuating fac-
tor’’ means a reason from a list of reasons developed 
by the Secretary (such as a change in requirements, 
delay in performance, or failure to receive funding) 
for the failure of a foreign military sale to meet a 
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standard timeline to achieve a milestone established 
under subsection (a). 
SEC. 865. NOTIFICATION REQUIREMENT FOR CERTAIN 
CONTRACTS FOR AUDIT SERVICES. 
(a) NOTIFICATION TO CONGRESS.—If the Under Sec-
retary of Defense (Comptroller) makes a written finding 
that a delay in performance of a covered contract while 
a protest is pending would hinder the annual preparation 
of audited financial statements for the Department of De-
fense, and the head of the procuring activity responsible 
for the award of the covered contract does not authorize 
the award of the contract (pursuant to section 3553(c)(2) 
of title 31, United States Code) or the performance of the 
contract (pursuant to section 3553(d)(3)(C) of such title), 
the Secretary of Defense shall— 
(1) notify the congressional defense committees 
within 10 days after such finding is made; and 
(2) describe any steps the Department of De-
fense plans to take to mitigate any hindrance identi-
fied in such finding to the annual preparation of au-
dited financial statements for the Department. 
(b) COVERED CONTRACT DEFINED.—In this section, 
the term ‘‘covered contract’’ means a contract for services 
to perform an audit to comply with the requirements of 
section 3515 of title 31, United States Code. 
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SEC. 866. TRAINING IN ACQUISITION OF COMMERCIAL 
ITEMS. 
(a) TRAINING.—Not later than 180 days after the 
date of the enactment of this Act, the President of the 
Defense Acquisition University shall establish a com-
prehensive training program on the acquisition of commer-
cial items, including part 12 of the Federal Acquisition 
Regulation. The curriculum shall include, at a minimum, 
the following: 
(1) The reasons for and appropriate uses of 
part 12 of the Federal Acquisition Regulation, in-
cluding the preference for the acquisition of commer-
cial items under section 2377 of title 10, United 
States Code. 
(2) The definition of a commercial item, includ-
ing the interpretation of the phrase ‘‘of a type’’. 
(3) Price analysis and negotiations. 
(4) Market research and analysis. 
(5) Independent cost estimates. 
(6) Parametric estimating methods. 
(7) Value analysis. 
(8) Other topics on the acquisition of commer-
cial items necessary to ensure a well-educated acqui-
sition workforce. 
(b) STUDENT ENROLLMENT.—The President of the 
Defense Acquisition University shall set goals for student 
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enrollment for the training program established under 
subsection (a). 
SEC. 867. NOTICE OF COST-FREE FEDERAL PROCUREMENT 
TECHNICAL 
ASSISTANCE 
IN 
CONNECTION 
WITH REGISTRATION OF SMALL BUSINESS 
CONCERNS ON PROCUREMENT WEBSITES OF 
THE DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish procedures to ensure that any notice or direct com-
munication regarding the registration of a small business 
concern on a website maintained by the Department of 
Defense relating to contracting opportunities contains in-
formation about cost-free Federal procurement technical 
assistance services that are available through a procure-
ment technical assistance program established under chap-
ter 142 of title 10, United States Code. 
(b) SMALL BUSINESS CONCERN DEFINED.—The 
term ‘‘small business concern’’ has the meaning given such 
term under section 3 of the Small Business Act (15 U.S.C. 
632). 
SEC. 868. COMPTROLLER GENERAL REPORT ON CON-
TRACTOR 
BUSINESS 
SYSTEM 
REQUIRE-
MENTS. 
Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States 
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shall submit to the congressional defense committees a re-
port on the feasibility and effects of an increase to the 
percentage of total gross revenue included in the definition 
of the term ‘‘covered contractor’’ in section 893(g)(2) of 
the Ike Skelton National Defense Authorization Act for 
Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 2302 
note). Such report shall include— 
(1) an assessment of the effects of the amend-
ment to such definition made by subsection (c) of 
section 893 of the National Defense Authorization 
Act for Fiscal Year 2017 (Public Law 114–328); 
and 
(2) the feasibility and effects of a subsequent 
increase to the percentage of total gross revenue in-
cluded in such definition. 
SEC. 869. STANDARD GUIDELINES FOR EVALUATION OF RE-
QUIREMENTS FOR SERVICES CONTRACTS. 
(a) IN GENERAL.—The Secretary of Defense shall 
encourage the use of standard guidelines within the De-
partment of Defense for the evaluation of requirements 
for services contracts. Such guidelines shall be available 
to the Services Requirements Review Boards (established 
under Department of Defense Instruction 5000.74, titled 
‘‘Defense Acquisition of Services’’ and dated January 5, 
2016, or a successor instruction) within each Defense 
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Agency, each Department of Defense Field Activity, and 
each military department for the purpose of standardizing 
the requirements evaluation required under section 2329 
of title 10, United States Code, as added by this Act. Such 
guidelines may provide policy guidance or tools, including 
a comprehensive checklist of total force management poli-
cies and procedures that is modeled after the checklist 
used by the Army, to aid uniform decision-making during 
the requirements evaluation process. 
(b) DEFINITIONS.—In this section— 
(1) the terms ‘‘Defense Agency’’, ‘‘Department 
of Defense Field Activity’’, and ‘‘military depart-
ment’’ have the meanings given those terms in sec-
tion 101 of title 10, United States Code; and 
(2) the term ‘‘total force management policies 
and procedures’’ means the policies and procedures 
established under section 129a of such title. 
SEC. 870. TEMPORARY LIMITATION ON AGGREGATE AN-
NUAL AMOUNT AVAILABLE FOR CONTRACT 
SERVICES. 
(a) LIMITATION.—Except as provided in subsection 
(b)(1), the total amount obligated by the Department of 
Defense for contract services in fiscal year 2018 may not 
exceed the total amount requested for the Department for 
contract services in the budget of the President for fiscal 
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year 2010 (as submitted to Congress pursuant to section 
1105(a) of title 31, United States Code) adjusted for net 
transfers from funding for overseas contingency oper-
ations. 
(b) DEFINITIONS.—In this section: 
(1) CONTRACT SERVICES.—The term ‘‘contract 
services’’ has the meaning given that term in section 
235 of title 10, United States Code, except that the 
term does not include services that are funded out 
of amounts available for overseas contingency oper-
ations. 
(2) TRANSFERS FROM FUNDING FOR OVERSEAS 
CONTINGENCY
OPERATIONS.—The term ‘‘transfers 
from funding for overseas contingency operations’’ 
means amounts funded out of amounts available for 
overseas contingency operations in fiscal year 2010 
that are funded out of amounts other than amounts 
so available in fiscal year 2018. 
SEC. 871. DEVELOPMENT OF PROCUREMENT ADMINISTRA-
TIVE LEAD TIME. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall develop, make available for public comment, and fi-
nalize— 
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(1) a definition of the term ‘‘Procurement Ad-
ministrative Lead Time’’ or ‘‘PALT’’, to be applied 
Department of Defense-wide, that describes the 
amount of time from the date on which a solicitation 
is issued to the date of an initial award of a contract 
or task order of the Department of Defense; and 
(2) a plan for measuring and publicly reporting 
data on PALT for Department of Defense contracts 
and task orders above the micro-purchase threshold. 
(b) REQUIREMENT
FOR DEFINITION.—Unless the 
Secretary determines otherwise, the amount of time in the 
definition of PALT developed under subsection (a) shall— 
(1) begin on the date on which a solicitation is 
issued for a contract or task order of the Depart-
ment of Defense by the Secretary of a military de-
partment or head of a Defense Agency; and 
(2) end on the date of an initial award of the 
contract or task order. 
(c) DEVIATION FROM PALT MILESTONES.—The 
Secretary may deviate from current PALT milestones as 
the Secretary determines necessary, to develop the defini-
tion of PALT under subsection (a). 
(d) COORDINATION.—In developing the definition of 
PALT, the Secretary shall coordinate with the senior con-
tracting official of each military department and Defense 
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Agency to determine the variations of the definition in use 
across the Department of Defense and each military de-
partment and Defense Agency. 
(e) USE OF EXISTING PROCUREMENT DATA SYS-
TEMS.—In developing the plan for measuring and publicly 
reporting data on PALT required by subsection (a), the 
Secretary shall consider, to the maximum extent prac-
ticable, relying on the information captured by the Federal 
procurement data system established pursuant to section 
1122(a)(4) of title 41, United States Code (or any similar 
or successor system). 
SEC. 872. SENSE OF CONGRESS REGARDING STEEL PRO-
DUCED IN THE UNITED STATES. 
(a) FINDINGS.—Congress finds the following: 
(1) Frequent surges in unfairly trade steel im-
ports have materially injured the iron ore and steel 
industries in the United States, putting our national, 
economic, and energy security at risk. 
(2) High-quality American steel products are 
vital to the success of the United States military and 
are used in a variety of applications from aircraft 
carriers to armor plate for tanks. 
(3) Domestic producers of defense-related steel 
products are dependent on the overall financial 
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health of the iron ore and steel industries in the 
United States. 
(4) The loss of a strong domestic iron ore and 
steel industry would make the United States dan-
gerously dependent upon foreign sources of steel, 
such as China. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that a strong domestic iron ore and steel industry 
is vital to the national security of the United States. 
SEC. 873. AMENDMENTS RELATING TO INFORMATION 
TECHNOLOGY. 
(a) ELIMINATION OF SUNSET RELATING TO TRANS-
PARENCY AND RISK MANAGEMENT OF MAJOR INFORMA-
TION TECHNOLOGY INVESTMENTS.—Subsection (c) of 
section 11302 of title 40, United States Code, is amended 
by striking the first paragraph (5). 
(b) ELIMINATION OF SUNSET RELATING TO INFOR-
MATION TECHNOLOGY PORTFOLIO, PROGRAM, AND RE-
SOURCE REVIEWS.—Section 11319 of title 40, United 
States Code, is amended— 
(1) by redesignating the second subsection (c) 
as subsection (d); and 
(2) in subsection (d), as so redesignated, by 
striking paragraph (6). 
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(c) EXTENSION OF SUNSET RELATING TO FEDERAL 
DATA CENTER CONSOLIDATION INITIATIVE.—Subsection 
(e) of section 834 of the National Defense Authorization 
Act for Fiscal Year 2015 (Public Law 113–291; 44 U.S.C. 
3601 note) is amended by striking ‘‘2018’’ and inserting 
‘‘2020’’. 
SEC. 874. REPEAL OF CERTAIN AUDITING REQUIREMENTS. 
Section 190 of title 10, United States Code, as pro-
posed to be added by section 820(b)(1) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public 
Law 114–328; 130 Stat. 2274), is amended by striking 
subsection (f). 
SEC. 875. PROHIBITION ON CONTRACTING WITH CERTAIN 
TELECOMMUNICATIONS PROVIDERS. 
(a) LIST OF COVERED CONTRACTORS.—Not later 
than 30 days after the date of the enactment of this Act, 
the Director of National Intelligence shall develop a list 
of covered contractors, to be updated as frequently as the 
Director determines appropriate, and shall make such list 
available to the Secretary of Defense. 
(b) PROHIBITION ON CONTRACTS.—The Secretary of 
Defense may not enter into a contract with a covered con-
tractor on the list described under subsection (a). 
(c) REMOVAL FROM LIST.—To be removed from the 
list described in subsection (a), a covered contractor may 
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submit a request to the Director in such manner as the 
Director determines appropriate. Upon certification of the 
request, the Director shall remove the covered contractor 
from the list. 
(d) WAIVER.—The President may waive the require-
ments of subsection (b) if the President determines that 
the waiver is justified for national security reasons. 
(e) COVERED CONTRACTOR DEFINED.—The term 
‘‘covered contractor’’ means a provider of telecommuni-
cations or telecommunications equipment that has been 
found by the Director to have knowingly assisted or facili-
tated a cyber attack carried out by or on behalf of the 
government of the Democratic People’s Republic of Korea 
or persons associated with such government. 
(f) EFFECTIVE DATE.—This section shall apply with 
respect to contracts of a covered contractor entered into 
on or after the date of the enactment of this Act. 
SEC. 876. ASSESSMENT AND AUTHORITY TO TERMINATE OR 
PROHIBIT CONTRACTS FOR PROCUREMENT 
FROM CHINESE COMPANIES PROVIDING SUP-
PORT TO THE DEMOCRATIC PEOPLE’S RE-
PUBLIC OF KOREA. 
(a) ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—The Secretary of Defense, in 
consultation with the Secretary of State, the Sec-
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retary of the Treasury, and the Director of National 
Intelligence, shall conduct an assessment of trade 
between the People’s Republic of China and the 
Democratic People’s Republic of Korea, including 
elements deemed to be important to United States 
national security and defense. 
(2) ELEMENTS.—The assessment required by 
paragraph (1) shall— 
(A) assess the composition of all trade be-
tween China and the Democratic People’s Re-
public of Korea, including trade in goods and 
services; 
(B) identify whether any Chinese commer-
cial entities that are engaged in such trade ma-
terially support illicit activities on the part of 
North Korea; 
(C) evaluate the extent to which the 
United States Government procures goods or 
services from any commercial entity identified 
under subparagraph (B); 
(D) provide a list of commercial entities 
identified under subparagraph (B) that provide 
defense goods or services for the Department of 
Defense; and 
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funding levels necessary to accomplish the items specified 
in paragraph (1). 
‘‘(3) In cooperation with the appropriate staff of the 
Department, the corrosion control and prevention execu-
tive in the Department shall, develop, support, and provide 
the rationale for resources— 
‘‘(A) to initiate and sustain an effective corro-
sion control and prevention program in the Depart-
ment; 
‘‘(B) to evaluate the program’s effectiveness; 
and 
‘‘(C) to ensure that corrosion control and pre-
vention requirements for materiel are reflected in 
budgeting and policies of the Department for the 
formulation, management, and evaluation of per-
sonnel and programs for the entire Department, in-
cluding the Army Reserve and the Army National 
Guard. 
‘‘(4) The corrosion control and prevention executive 
in the Department shall submit an annual report, not later 
than December 31 of each year, to the Secretary of the 
Army and the Secretary of Defense containing rec-
ommendations pertaining to the corrosion control and pre-
vention program of the Department, including corrosion- 
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HR 2810 PCS
defense systems as described in subsection (a), in-
cluding— 
(A) the geographic location of such ele-
ment; 
(B) a detailed intelligence assessment of 
such element; 
(C) a description of the alignment of such 
element within the broader conflict in Syria; 
and 
(D) a description and assessment of the 
assurance, if any, received by the commander of 
such element in connection with the provision of 
man-portable air defense systems. 
(2) The number and type of man-portable air 
defense systems to be so provided. 
(3) The logistics plan for providing and resup-
plying each element to be so provided man-portable 
air defense systems with additional man-portable air 
defense systems. 
(4) The duration of support to be provided in 
connection with the provision of man-portable air de-
fense systems. 
(5) The justification for the provision of man- 
portable air defense systems to each element of the 
vetted Syrian opposition, including an explanation of 
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