362 
(2) Criteria by which such authority will be ap-
plied, including criteria to ensure compliance with 
applicable laws. 
SEC. 822. AUTHORITY TO USE HIGHER THRESHOLDS FOR 
PROCUREMENTS IN SUPPORT OF CONTIN-
GENCY OPERATIONS. 
With respect to a procurement of property or services 
by or for the Department of Defense that the Secretary of 
Defense determines are to be used in support of a contin-
gency operation in Iraq or Afghanistan, regardless of 
whether the award of a contract, or the making of a pur-
chase, for the procurement is inside or outside the United 
States— 
(1) the simplified acquisition threshold is deemed 
to be $1,000,000; and 
(2) the micro-purchase threshold is deemed to be 
$25,000. 
SEC. 823. AUTHORITY TO EXAMINE RECORDS OF FOREIGN 
CONTRACTORS PERFORMING CONTRACTS IN 
SUPPORT OF CONTINGENCY OPERATIONS IN 
IRAQ OR AFGHANISTAN. 
(a) AUTHORITY.—Except as provided in subsection 
(b), the Secretary of Defense may examine the records of 
a foreign contractor performing a contract in support of 
a contingency operation in Iraq or Afghanistan. 
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(b) EXCEPTION.—Subsection (a) does not apply to a 
foreign contractor that is a foreign government or agency 
thereof or that is precluded by applicable laws from making 
its records available for examination. 
(c) GUIDANCE.—Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
issue guidance to implement this section. 
SEC. 824. DEFINITIONS. 
In this subtitle: 
(1) CONTRACT IN SUPPORT OF A CONTINGENCY 
OPERATION
IN
IRAQ
OR
AFGHANISTAN.—The term 
‘‘contract in support of a contingency operation in 
Iraq or Afghanistan’’ means a contract awarded by 
the Secretary of Defense for the procurement of prop-
erty or services to be used outside the United States 
in support of a contingency operation in Iraq or Af-
ghanistan. 
(2) CONTINGENCY OPERATION.—The term ‘‘con-
tingency operation’’ has the meaning provided by sec-
tion 101(a)(13) of title 10, United States Code. 
(3) RECORDS.—The term ‘‘records’’ has the 
meaning provided by section 2313(l) of title 10, 
United States Code. 
(4) FOREIGN CONTRACTOR.—The term ‘‘foreign 
contractor’’ means a contractor or subcontractor orga-
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nized or existing under the laws of a country other 
than the United States. 
Subtitle D—Defense Industrial Base 
Matters 
SEC. 831. ASSESSMENT OF THE DEFENSE INDUSTRIAL BASE 
PILOT PROGRAM. 
(a) REPORT.—Not later than March 1, 2012, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report on the defense industrial base pilot pro-
gram of the Department of Defense. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include each of the following: 
(1) A quantitative and qualitative analysis of 
the effectiveness of the defense industrial base pilot 
program. 
(2) An assessment of the legal, policy, or regu-
latory challenges associated with effectively executing 
the pilot program. 
(3) Recommendations for changes to the legal, 
policy, or regulatory framework for the pilot program 
to make it more effective. 
(4) A description of any plans to expand the 
pilot program, including to other sectors beyond the 
defense industrial base. 
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(5) An assessment of the potential legal, policy, 
or regulatory challenges associated with expanding 
the pilot program. 
(6) Any other matters the Secretary considers 
appropriate. 
(c) FORM.—The report required under this section 
shall be submitted in unclassified form, but may include 
a classified annex. 
SEC. 832. DEPARTMENT OF DEFENSE ASSESSMENT OF IN-
DUSTRIAL BASE FOR POTENTIAL SHORT-
FALLS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall undertake an assessment of the current and long- 
term availability within the United States industrial base 
of critical equipment, components, subcomponents, and ma-
terials needed to support short or prolonged conventional 
conflicts. In carrying out the assessment, the Secretary 
shall— 
(1) identify items that the Secretary determines 
are critical to military readiness, including key com-
ponents, subcomponents, and materials; 
(2) perform a risk assessment of the supply 
chain for items identified under paragraph (1) and 
an evaluation of the extent to which— 
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(A) the supply chain for such items could be 
disrupted by a first strike on the United States; 
and 
(B) the industrial base obtains such items 
from foreign sources; and 
(3) develop mitigation strategies to address any 
gaps and vulnerabilities in the ability of the Depart-
ment to respond to potential contingencies identified 
in operational plans of the combatant commanders if 
the sources that provide items identified under para-
graph (1) should become unavailable. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report containing the findings of the 
assessment required under subsection (a). 
(c) GAO REVIEW.—The Comptroller General of the 
United States shall review the assessment required under 
subsection (a) and the report required under subsection (b) 
and submit to Congress a report on such review. The review 
shall include an assessment of— 
(1) the completeness of the report; 
(2) the reasonableness of the methodology used to 
develop the report; 
(3) the conclusions contained in the report; and 
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(4) the extent to which the Department has im-
plemented a Department-wide framework to identify 
and address gaps and vulnerabilities in the supply 
chain. 
SEC. 833. COMPTROLLER GENERAL ASSESSMENT OF GOV-
ERNMENT COMPETITION IN THE DEPART-
MENT OF DEFENSE INDUSTRIAL BASE. 
(a) 
COMPTROLLER
GENERAL
ASSESSMENT
RE-
QUIRED.—The Comptroller General of the United States 
shall carry out an assessment of the effect of Government 
mandated and supported competition in the Department of 
Defense industrial base that includes, at a minimum, the 
following: 
(1) An examination of the aerospace propulsion 
business volume that the Department generates and 
whether such volume facilitates or supports multiple 
levels of competitors. 
(2) An examination of the factors necessary to 
achieve cost effectiveness in initiating and supporting 
a competitive industrial base. 
(3) An examination of the actual costs of devel-
oping a second source for previous private sector pro-
vided materials versus savings provided through such 
competitions. 
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(4) The advantages and disadvantages of other 
potential options or methods as well as any shortfalls 
in the current processes. 
(5) Recommendations for any administrative or 
legislative action that the Comptroller General deems 
appropriate in the context of the assessment. 
(b) REPORT.—Not later than April 1, 2012, the Comp-
troller General shall submit to the Chairmen and ranking 
members of the Committees on Armed Services of the Senate 
and the House of Representatives a report on the findings 
and recommendations, as appropriate, of the Comptroller 
General with respect to the assessment conducted. The 
Comptroller General shall receive comments from the Sec-
retary of Defense and others, as appropriate. 
SEC. 834. REPORT ON IMPACT OF FOREIGN BOYCOTTS ON 
THE DEFENSE INDUSTRIAL BASE. 
(a) IN GENERAL.—Not later than February 1, 2012, 
the Comptroller General of the United States shall submit 
to the appropriate congressional committees a report setting 
forth an assessment of the impact of foreign boycotts on the 
defense industrial base. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include— 
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(1) a summary of foreign boycotts that posed a 
material risk to the defense industrial base from Jan-
uary 2008 to the date of enactment of this Act; 
(2) the apparent objectives of each such boycott; 
(3) an assessment of harm to the defense indus-
trial base as a result of each such boycott; 
(4) an assessment of the sufficiency of Depart-
ment of Defense and Department of State efforts to 
mitigate the material risks of any such boycott to the 
defense industrial base; and 
(5) recommendations of the Comptroller General 
to reduce the material risks of foreign boycotts to the 
defense industrial base, including recommendations 
for changes to legislation, regulation, policy, or proce-
dures. 
(c) CONFIDENTIALITY.—The Comptroller General shall 
not publicly disclose the names of any person, organization, 
or entity involved in or affected by any foreign boycott iden-
tified in the report required under subsection (a) without 
the express written approval of the person, organization, or 
entity concerned. 
(d) DEFINITIONS.—In this section: 
(1) FOREIGN BOYCOTT.—The term ‘‘foreign boy-
cott’’ means any policy or practice adopted by a for-
eign government or foreign business enterprise in-
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tended to directly penalize, disadvantage, or harm 
any contractor or subcontractor of the Department of 
Defense, or otherwise dissociate the foreign govern-
ment or foreign business enterprise from such a con-
tractor or subcontractor on account of the provision 
by that contractor or subcontractor of any product or 
service to the Department. 
(2) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the congressional defense committees; 
and 
(B) the Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Foreign Relations of the Senate. 
SEC. 835. RARE EARTH MATERIAL INVENTORY PLAN. 
(a) REQUIREMENT.—Not later than 180 days after the 
date of the enactment of this Act, the Administrator of the 
Defense Logistics Agency Strategic Materials shall submit 
to the Secretary of Defense a plan to establish an inventory 
of rare earth materials necessary to ensure the long-term 
availability of such rare earth materials, as identified by 
the report required by section 843 of the Ike Skelton Na-
tional Defense Authorization Act for Fiscal Year 2011 (Pub-
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lic Law 111–383; 124 Stat. 4282) and as otherwise deter-
mined to be necessary. The plan shall— 
(1) identify and describe the steps necessary to 
create an inventory of rare earth materials, including 
oxides, metals, alloys, and magnets, to support na-
tional defense requirements and ensure reliable 
sources of such materials for defense purposes; 
(2) provide a detailed cost-benefit analysis of cre-
ating such an inventory in accordance with Office of 
Management and Budget Circular A–94; 
(3) provide an analysis of the potential market 
effects, including effects on the pricing and commer-
cial availability of such rare earth materials, associ-
ated with creating such an inventory; 
(4) identify and describe the mechanisms avail-
able to the Administrator to make such an inventory 
accessible, including by purchase, to entities requiring 
such rare earth materials to support national defense 
requirements, including producers of end items con-
taining rare earth materials; 
(5) provide a detailed explanation of the ability 
of the Administrator to authorize the sale of excess 
materials to support a Rare Earth Material Stockpile 
Inventory Program; 
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(6) analyze any potential requirements to amend 
or revise the Defense Logistics Agency Strategic Mate-
rials Annual Material Plan for Fiscal Year 2012 and 
subsequent years to reflect an inventory of rare earth 
materials to support national defense requirements; 
(7) identify and describe the steps necessary to 
develop or maintain a competitive, multi-source sup-
ply-chain to avoid reliance on a single source of sup-
ply; 
(8) identify and describe supply sources consid-
ered by the Administrator to be reliable, including an 
analysis of the capabilities of such sources to produce 
such materials in forms required for military appli-
cations in the next five years, as well as the security 
of upstream supply for these sources of material; and 
(9) include such other considerations and rec-
ommendations as necessary to support the establish-
ment of such inventory. 
(b) DETERMINATION.— 
(1) IN GENERAL.—Not later than 90 days after 
the date on which the plan is submitted under sub-
section (a), the Secretary of Defense shall determine 
whether to execute the plan described in subsection 
(a). 
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(2) SUBMITTAL.—The Secretary shall submit to 
the congressional defense committees— 
(A) the plan under subsection (a); and 
(B) a notice of the determination under 
paragraph (1). 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘rare earth’’ means any of the fol-
lowing chemical elements in any of their physical 
forms or chemical combinations and alloys: 
(A) Scandium. 
(B) Yttrium. 
(C) Lanthanum. 
(D) Cerium. 
(E) Praseodymium. 
(F) Neodymium. 
(G) Promethium. 
(H) Samarium. 
(I) Europium. 
(J) Gadolinium. 
(K) Terbium. 
(L) Dysprosium. 
(M) Holmium. 
(N) Erbium. 
(O) Thulium. 
(P) Ytterbium. 
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(Q) Lutetium. 
(2) The term ‘‘capability’’ means the required fa-
cilities, manpower, technological knowhow, and intel-
lectual property necessary for the efficient and effec-
tive production of rare earth materials. 
Subtitle E—Other Matters 
SEC. 841. MISCELLANEOUS AMENDMENTS TO PUBLIC LAW 
111–383 RELATING TO ACQUISITION. 
(a) AMENDMENTS TO CAPABILITIES COVERED BY AC-
QUISITION
PROCESS
FOR
RAPID
FIELDING.—Section 
804(b)(3) of the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111–383; 124 Stat. 
4256; 10 U.S.C. 2302 note) is amended— 
(1) by inserting ‘‘and’’ at the end of subpara-
graph (B); 
(2) by striking ‘‘; and’’ at the end of subpara-
graph (C) and inserting a period; and 
(3) by striking subparagraph (D). 
(b) AMENDMENTS TO ELEMENTS OF GUIDANCE ON 
MANAGEMENT OF MANUFACTURING RISK IN MAJOR DE-
FENSE ACQUISITION PROGRAMS.—Section 812(b) of such 
Act (Public Law 111–383; 124 Stat. 4264; 10 U.S.C. 2430) 
is amended— 
(1) by striking paragraph (1); and 
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(2) by redesignating paragraphs (2), (3), (4), 
and (5) as paragraphs (1), (2), (3), and (4), respec-
tively. 
(c) AMENDMENTS TO DEFENSE RESEARCH AND DE-
VELOPMENT RAPID INNOVATION PROGRAM.—Section 1073 
of such Act (Public Law 111–383; 124 Stat. 4366; 10 U.S.C. 
2359a note) is amended— 
(1) in subsection (a), by striking ‘‘shall’’ in the 
first sentence and inserting ‘‘may’’; and 
(2) in subsection (b), by amending the first sen-
tence to read as follows: ‘‘If the Secretary establishes 
a program under subsection (a), the Secretary shall 
issue guidelines for the operation of the program.’’. 
SEC. 842. PROCUREMENT OF PHOTOVOLTAIC DEVICES. 
(a) REVISION
TO
CONTRACTS
DESCRIBED.—Sub-
section (b) of section 846 of the Ike Skelton National Defense 
Authorization Act for Fiscal Year 2011 (Public Law 111– 
383; 124 Stat. 4285; 10 U.S.C. 2534 note) is amended by 
striking ‘‘For the purposes of this section,’’ and all that fol-
lows through the end and inserting the following: ‘‘For the 
purposes of this section, the Department of Defense is 
deemed to own a photovoltaic device if the device is installed 
on Department of Defense property or in a facility owned 
or leased by or for the Department of Defense.’’. 
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(b) REVISION TO DEFINITION OF PHOTOVOLTAIC DE-
VICES.—Subsection (c) of such section is amended by strik-
ing ‘‘means’’ and all that follows through the end and in-
serting the following: ‘‘means devices that convert light di-
rectly into electricity.’’. 
SEC. 843. CLARIFICATION OF JURISDICTION OF THE 
UNITED STATES DISTRICT COURTS TO HEAR 
BID PROTEST DISPUTES INVOLVING MARI-
TIME CONTRACTS. 
(a) EXCLUSIVE JURISDICTION.—Section 1491(b) of 
title 28, United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(6) Jurisdiction over any action described in 
paragraph (1) arising out of a maritime contract, or 
a solicitation for a proposed maritime contract, shall 
be governed by this section and shall not be subject to 
the jurisdiction of the district courts of the United 
States under the Suits in Admiralty Act (chapter 309 
of title 46) or the Public Vessels Act (chapter 311 of 
title 46).’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to any cause of action filed on or 
after the first day of the first month beginning more than 
30 days after the date of the enactment of this Act. 
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SEC. 844. EXEMPTION OF DEPARTMENT OF DEFENSE FROM 
ALTERNATIVE 
FUEL 
PROCUREMENT 
RE-
QUIREMENT. 
Section 526 of the Energy Independence and Security 
Act of 2007 (Public Law 110–140; 42 U.S.C. 17142) is 
amended by adding at the end the following: ‘‘This section 
shall not apply to the Department of Defense.’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. REVISION OF DEFENSE BUSINESS SYSTEMS RE-
QUIREMENTS. 
Section 2222 of title 10, United States Code, is amend-
ed to read as follows: 
‘‘§ 2222. Defense business systems: architecture, ac-
countability, and modernization 
‘‘(a) CONDITIONS FOR OBLIGATION OF FUNDS FOR DE-
FENSE BUSINESS SYSTEMS.—Funds available to the De-
partment of Defense, whether appropriated or non-appro-
priated, may not be obligated for a defense business system 
that will have a total cost in excess of $1,000,000 unless— 
‘‘(1) the appropriate pre-certification authority 
for the defense business system has determined that— 
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‘‘(A) the defense business system is in com-
pliance with the enterprise architecture developed 
under subsection (c) and appropriate business 
process re-engineering efforts have been under-
taken to ensure that— 
‘‘(i) the business process to be sup-
ported by the defense business system is as 
streamlined and efficient as practicable; 
and 
‘‘(ii) the need to tailor commercial-off- 
the-shelf systems to meet unique require-
ments or incorporate unique requirements 
or incorporate unique interfaces has been 
eliminated or reduced to the maximum ex-
tent practicable; 
‘‘(B) the defense business system is nec-
essary to achieve a critical national security ca-
pability or address a critical requirement in an 
area such as safety or security; or 
‘‘(C) the defense business system is nec-
essary to prevent a significant adverse effect on 
a project that is needed to achieve an essential 
capability, taking into consideration the alter-
native solutions for preventing such adverse ef-
fect; 
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