469 
(i) by striking ‘‘paragraph (3)’’ and 
inserting ‘‘paragraph (4)’’; and 
(ii) by inserting ‘‘(or with respect to a 
program executive officer, six-year period)’’ 
after ‘‘three-year period’’; 
(C) in paragraph (2), by striking ‘‘A per-
son’’ inserting ‘‘Except as provided in para-
graph (3), a person’’; 
(D) by redesignating paragraph (3) as 
paragraph (4); and 
(E) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) An individual may not be assigned as a program 
executive officer (as described in section 1732 of this title) 
unless the individual executes a written agreement to re-
main on active duty (in the case of a member of the armed 
forces) or to remain in Federal service (in the case of an 
employee) in that position for a period of at least six years. 
The service obligation contained in such a written agree-
ment shall remain in effect unless and until waived by the 
Secretary concerned under subsection (b).’’; 
(2) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(4) The Secretary of Defense shall require that— 
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‘‘(A) a program executive officer be assigned in 
that position for a period of at least six years; and 
‘‘(B) the Under Secretary of Defense for Per-
sonnel and Readiness and the Under Secretary of De-
fense for Acquisition and Sustainment jointly ensure 
that the requirement in subparagraph (A) does not 
negatively affect the consideration of an individual 
for promotion or otherwise impede the advancement of 
an individual to a position of higher responsibility.’’; 
(3) in subsection (d), by striking ‘‘subsection 
(a)(2) or (b)(2)’’ and inserting ‘‘in subsection (a)(2), 
(b)(2), or (b)(3)’’; and 
(4) in subsection (e), by inserting ‘‘(except for an 
individual assigned as a program executive officer)’’ 
after ‘‘serving in critical acquisition positions’’. 
SEC. 833. DEVELOPMENT OF THE ADVANCED MANUFAC-
TURING WORKFORCE. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall establish in the Defense Industrial Resilience Consor-
tium established under section 1842 of this Act a working 
group to identify opportunities to address workforce short-
ages in advanced manufacturing career fields in the defense 
industrial base. 
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(b) MEMBERSHIP.—The working group shall consist of 
members of the Defense Industrial Resilience Consortium 
with an interest in addressing workforce shortages in ad-
vanced manufacturing career fields in the defense industrial 
base. 
(c) RESPONSIBILITIES.—The working group shall— 
(1) identify estimated workforce shortages in ad-
vanced manufacturing career fields in the defense in-
dustrial base, including such workforce shortages in 
the Department of Defense organic industrial base; 
(2) identify career fields in advanced manufac-
turing and the associated skills and abilities that are 
required for such fields; and 
(3) develop recommendations for— 
(A) training, education, and career develop-
ment programs, including mid-career programs, 
apprenticeships, 
internships, 
and 
summer 
camps, to prepare individuals for careers in ad-
vanced manufacturing; 
(B) the establishment of public-private part-
nerships to provide workforce development activi-
ties, including identifying incentives for such 
partnerships for success in recruiting, training, 
and retaining individuals in careers in ad-
vanced manufacturing; and 
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(C) any policy changes needed to further the 
participation of individuals in the advanced 
manufacturing workforce of the defense indus-
trial base. 
(d) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report containing— 
(1) any recommendations developed by the work-
ing group under subsection (c)(3); and 
(2) a recommendation whether to continue or 
terminate the working group. 
(e) ADVANCED MANUFACTURING DEFINED.—In this 
section, the term ‘‘advanced manufacturing’’ means the 
manufacturing of products or the application and use of 
advanced technologies (including artificial intelligence, ro-
botics, automation, 3D printing, and cyber-physical sys-
tems). 
SEC. 834. COMPETITIVE ACQUISITION LEADERSHIP AP-
POINTMENTS. 
(a) IN GENERAL.—The Secretary of Defense shall en-
sure that the eligibility for an acquisition leadership posi-
tion associated with a joint research and development activ-
ity or a joint acquisition program is not limited by— 
(1) the affiliation of an individual with a spe-
cific Armed Force; or 
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(2) whether an individual is a civilian employee 
of the Department of Defense or a member of the mili-
tary. 
(b) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed as impairing or otherwise affecting the 
authority of any component, element, or activity of the De-
partment of Defense from considering the level of represen-
tation of an Armed Force, Federal agency, or organization 
of the Department in an acquisition program when deter-
mining whom to appoint to an acquisition leadership posi-
tion under such acquisition program. 
(c) ACQUISITION LEADERSHIP POSITION DEFINED.— 
In this section, the term ‘‘acquisition leadership position’’ 
means an acquisition position within the Department of 
Defense, as designated pursuant to section 1721(a) of title 
10, United States Code, that is under an acquisition pro-
gram of the Department and classified at or above grade 
O-5 (or equivalent). 
SEC. 835. DEVELOPMENT AND EMPLOYMENT OF MEMBERS 
OF THE DEFENSE CIVILIAN TRAINING CORPS. 
(a) REVIEW REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Under Sec-
retary of Defense for Acquisition and Sustainment, in col-
laboration with the Secretaries of the military departments, 
shall identify career and developmental programs of the De-
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partment of Defense, including programs in which the De-
partment participates, that— 
(1) serve as recruitment and placement tools 
used to attract highly qualified individuals to and re-
tain such individuals in careers as Federal employees 
in the civil service; and 
(2) develop individuals into employees of the ac-
quisition workforce who have strong professional, tech-
nical, managerial, and administrative competencies 
that meet the current and future mission needs of the 
acquisition system of the Department. 
(b) MEMBER PLACEMENT.— 
(1) EXISTING PROGRAMS.— 
(A) IN
GENERAL.—The Under Secretary 
may, to the extent practicable, appoint members 
and Corps graduates to acquisition positions in 
the Department of Defense under the programs 
identified under subsection (a) to carry out the 
purpose of the Defense Civilian Training Corps 
described in section 2200g(b) of title 10, United 
States Code. 
(B) APPOINTMENTS.—The Under Secretary 
shall make appointments under subparagraph 
(A) using the authorities of and in accordance 
with the requirements of the program under 
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which the Under Secretary is making such ap-
pointment. 
(2) NEW PROGRAM.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Under Secretary shall establish a new program 
under which the Under Secretary may appoint 
Corps graduates to acquisition positions in the 
Department of Defense to carry out the purpose 
of the Defense Civilian Training Corps described 
in section 2200g(b) of title 10, United States 
Code, to the extent that the Under Secretary de-
termines that the authority to make appoint-
ments under paragraph (1) is insufficient to 
make the appointments necessary to carry out 
such purposes. 
(B) APPOINTMENT TERM.—An appointment 
under subparagraph (A) shall be a one-year ap-
pointment to a position in the civil service in a 
component of the Department of Defense partici-
pating in the program established under such 
subparagraph, which may be renewed for one 
year not more than once. 
(C) NONCOMPETITIVE APPOINTMENTS.— 
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(i) INITIAL APPOINTMENT.—The Under 
Secretary may make appointments under 
the program established under subpara-
graph (A) to positions in the competitive 
service without regard to sections 3309 
through 3318, 3327, and 3330 of title 5, 
United States. 
(ii) SUBSEQUENT
APPOINTMENT.—An 
individual appointed to a position under 
the program established under subpara-
graph (A) may be appointed to another po-
sition in the competitive service without re-
gard to sections 3309 through 3318, 3327, 
and 3330 of title 5, United States, if— 
(I) such individual has completed 
the term of the appointment of such in-
dividual under such program; 
(II) such individual has not been 
involuntarily separated from service in 
the Federal Government for cause on 
charges of misconduct or delinquency; 
(III) such individual has not been 
appointed to a position in the Federal 
Government after completing the term 
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477 
of the appointment of such individual 
under such program; and 
(IV) the date on which such indi-
vidual completed the term of the ap-
pointment of such individual under 
such program is not more than one 
year prior to the date of the appoint-
ment under this clause. 
(3) SALARY.— 
(A) IN
GENERAL.—The Under Secretary 
shall pay the basic pay of individuals appointed 
to positions under paragraph (1) or under the 
program established under paragraph (2)(A) 
from the Defense Acquisition Workforce Develop-
ment Account (section 1705 of title 10, United 
States Code) during the period described in sub-
paragraph (B). 
(B) PAYMENT
PERIOD.—The period de-
scribed in this subparagraph is— 
(i) with respect to an individual ap-
pointed to a position under paragraph (1), 
the period beginning on the date such ap-
pointment starts and ending on the earlier 
of the date that is one year after the date 
on which such appointment started or the 
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date on which such individual ceases to hold 
such position pursuant to such appoint-
ment; and 
(ii) with respect to an individual ap-
pointed to a position under the program es-
tablished under paragraph (2)(A), the pe-
riod beginning on the date such appoint-
ment starts and ending on the earlier of the 
date on which such appointment ends or the 
date on which such individual ceases to hold 
such position pursuant to such appoint-
ment. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees, the Com-
mittee on Oversight and Government Reform of the House 
of Representatives, and the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate a report— 
(1) describing the programs identified under sub-
section (a); 
(2) describing the program established under 
subsection (b)(2)(A); 
(3) with an estimate of the funding necessary to 
fulfill the requirements of this section, for each fiscal 
year through fiscal year 2030; 
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(4) providing recommendations for any changes 
in policy or regulation necessary to enable the pro-
grams identified under subsection (a) and the pro-
gram that may be established under subsection 
(b)(2)(A) to develop members and Corps graduates 
into employees of the acquisition workforce who have 
strong professional, technical, managerial, and ad-
ministrative competencies that meet the current and 
future mission needs of the acquisition system of the 
Department; and 
(5) any other recommendations of the Secretary 
for strengthening or improving the program estab-
lished under subsection (b)(2)(A). 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘acquisition position’’ means a po-
sition designated as an acquisition positions by the 
Secretary of Defense pursuant to section 1721(a) of 
title 10, United States Code. 
(2) The terms ‘‘acquisition workforce’’ and 
‘‘military departments’’ have the meanings given such 
terms, respectively, in section 101(a) of title 10, 
United States Code. 
(3) The term ‘‘Corps graduate’’ means an indi-
vidual who successfully graduated from the Defense 
Civilian Training Corps. 
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(4) The term ‘‘Defense Civilian Training Corps’’ 
means the Defense Civilian Training Corps program 
established under section 2200g of title 10, United 
States Code. 
(5) The term ‘‘member’’ means a student at an 
accredited civilian educational institution who is en-
rolled in the Defense Civilian Training Corps. 
(6) The term ‘‘Under Secretary’’ means the 
Under Secretary of Defense for Acquisition and 
Sustainment. 
SEC. 836. REFORM OF CONTRACTOR PERFORMANCE INFOR-
MATION REQUIREMENTS. 
(a) REVISION TO DFARS.—The Secretary of Defense 
shall revise part 242.15 of the Department of Defense Sup-
plement to the Federal Acquisition Regulation to establish 
an objective, fact-based, and simplified system for reporting 
contractor performance. The revised system shall— 
(1) focus exclusively on negative performance 
events that are measurable to reduce subjectivity and 
inconsistency in evaluations; 
(2) create a level playing field for commercial 
entities, subcontractors, and new entrants that do not 
have extensive past performance records to compete 
for Department of Defense contracts; 
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(3) reduce the administrative burden on con-
tracting officers by limiting reporting to significant 
failures or poor performance; 
(4) establish standardized templates for reporting 
negative performance events and calculating com-
posite scores; and 
(5) ensure the Government can identify and 
avoid contractors with a history of poor performance 
or bad actions. 
(b) REVISION OF CONTRACTOR PERFORMANCE INFOR-
MATION REQUIREMENTS.— 
(1) ELIMINATION OF SUBJECTIVE PERFORMANCE 
RATINGS.—The Secretary of Defense shall revise part 
242.15 of the Department of Defense Supplement to 
the Federal Acquisition Regulation and related guid-
ance, including the Contractor Performance Assess-
ment Reporting System (or a successor system) (in 
this section referred to as ‘‘CPARS’’), to eliminate 
subjective performance ratings for contracts subject to 
such part. 
(2) SCOPE OF REPORTING.—A contracting officer 
shall only include negative performance events that 
have a material impact on contract performance or 
Government interests in CPARS and shall exclude 
positive or neutral performance assessments, except as 
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necessary to provide context for an included negative 
performance event. A contracting officer shall report 
in CPARS negative performance events within 30 
days after verifying the event. 
(3) CATEGORIZATION
OF
NEGATIVE
PERFORM-
ANCE EVENTS.—A contracting officer shall categorize 
negative performance events reported under para-
graph (2) in one of the following areas: 
(A) Failures related to innovation, technical 
development, or prototype delivery. 
(B) Failures related to manufacturing, 
quality control, or delivery of products. 
(C) Failures related to maintenance, logis-
tics, or support services. 
(D) Failures related to professional, admin-
istrative, or operational services. 
(E) Failures related to software, hardware, 
cybersecurity, or information technology systems. 
(4) 
PERFORMANCE
EVALUATIONS.—A 
con-
tracting officer is not required to conduct an annual 
or periodic performance evaluation of a contractor 
unless the contracting officer has verified a negative 
performance event of such contractor. 
(5) USE IN SOURCE SELECTION.—The Secretary 
of Defense shall consider a negative performance event 
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and the score associated with such event (as cal-
culated under subsection (f)) in source selection eval-
uations to assess contractor risk and responsi-
bility.The absence of negative performance events for 
an offeror, including an offer that is a nontraditional 
defense contractor or a new entrant, shall not be con-
sidered a deficiency in past performance evaluations. 
Such offerors shall be evaluated based on technical ca-
pability, price, and other relevant factors. 
(c) SCORING MECHANISM FOR NEGATIVE PERFORM-
ANCE EVENTS.— 
(1) CALCULATION.—The Secretary of Defense 
shall establish a standardized scoring mechanism to 
normalize negative performance events of a contractor 
based on the number of transactions and the dollar 
value of contracts performed by the contractor. 
(2) APPLICATION
OF
SCORES.—The Secretary 
shall ensure that— 
(A) a composite score for each contractor is 
included in CPARS, along with any negative 
performance events used in source selection to as-
sess past performance risk; and 
(B) CPARS is programmed to automati-
cally calculate scores based on data entered by 
contracting officers, including the number of 
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transactions and the dollar value of contracts 
performed by the contractor. 
(4) TRANSPARENCY.—The Secretary shall ensure 
that contractors— 
(A) have access to composite scores and the 
underlying data through CPARS; and 
(B) may submit comments or rebuttals to 
reported negative performance events or scores, 
which shall be maintained in CPARS for consid-
eration in source selection. 
(d) MANDATORY REPORTING.—A contracting officer 
shall report the following negative performance events: 
(1) Delivery of products failing to meet contract 
requirements, as verified by Government inspection 
reports, quality assurance records, or testing results. 
(2) Failure to meet contract delivery schedules, 
as documented in contract milestones, delivery orders, 
or Government records. 
(3) Incorrect or unauthorized markings on tech-
nical data or software, or improper assertions of re-
strictive rights, as verified by Government review or 
legal findings. 
(4) Submission of inaccurate, incomplete, or 
misleading cost or pricing data, as identified through 
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485 
audits by the Defense Contract Audit Agency or other 
Government authorities. 
(5) Failure to include mandatory contract 
clauses in subcontracts, as verified by contract re-
views or audits. 
(6) Submission of false claims, fraudulent in-
voices, or misrepresentations, as substantiated by in-
vestigations, legal findings, or Government records. 
(7) Failure to comply with safety, environ-
mental, or other regulatory requirements, as docu-
mented by Government inspections or citations. 
(8) Failure to meet cybersecurity requirements or 
significant breaches caused by contractor negligence, 
as verified by Government records. 
(9) Any other negative performance event, as de-
termined by the Secretary of Defense, that is based on 
verifiable data or objective evaluations and for which 
the Secretary publishes criteria in the Department of 
Defense Supplement to the Federal Acquisition Regu-
lation. 
(e) IMPLEMENTATION.— 
(1) TRAINING AND GUIDANCE.—The Secretary of 
Defense shall develop and provide training for con-
tracting officers on the following: 
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(A) Identifying, verifying, and reporting 
negative performance events. 
(B) The use of objective evidence and the ex-
clusion of subjective judgments in reporting neg-
ative performance events. 
(C) Entering data for creating a score in 
CPARS. 
(2) SYSTEM MODIFICATIONS.—Not later than one 
year after the date of the enactment of this Act, the 
Secretary of Defense shall modify CPARS to include 
the following functions: 
(A) The categorization of negative perform-
ance events. 
(B) Elimination of fields for subjective rat-
ings. 
(C) 
Automatically 
calculate 
composite 
scores based on reported data. 
(D) A mechanism for contractors to review 
and respond to reported events and scores. 
(3) TRANSITION PERIOD.—With respect to a con-
tract awarded before the effective date of the revision 
to the Department of Defense Supplement to the Fed-
eral Acquisition Regulation required by subsection 
(a), a contracting officer for such contract may com-
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487 
plete CPARS evaluations under the prior system 
until the contract is closed or terminated. 
(f) REPORT AND OVERSIGHT.— 
(1) REPORT.—Not later than January 15, 2026, 
the Secretary of Defense shall submit to Committees 
on Armed Services of the Senate and House of Rep-
resentatives a report on the implementation of this 
section. 
(2) GAO REVIEW.—Not later than three years 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall conduct a 
review of the revised CPARS that includes the fol-
lowing: 
(A) The effectiveness of CPARS to carry out 
the requirements of this section. 
(B) The accuracy and fairness of the scor-
ing mechanism developed under subsection (d). 
(C) The effect of the modifictions made by 
this section on competition and participation of 
nontraditional defense contractors in contracts of 
the Department of Defense. 
(g) EFFECTIVE DATE.—This section and the require-
ments of this section shall take effect 180 days after the date 
of the enactment of this Act. 
(h) DEFINITIONS.—In this section: 
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(1) The term ‘‘negative performance event’’ 
means a verifiable instance of contractor failure or 
poor performance as described in subsection (e). 
(2) The term ‘‘nontraditional defense contractor’’ 
has the meaning given in section 3014 of title 10, 
United States Code. 
(3) The term ‘‘verifiable data’’ means objective 
evidence documented in contract records, inspection 
reports, audits, correspondence, or other Government 
records that substantiate a negative performance 
event. 
SEC. 837. RESTRUCTURING OF PERFORMANCE EVALUATION 
METRICS 
FOR 
THE 
ACQUISITION 
WORK-
FORCE. 
(a) ESTABLISHMENT
OF ACQUISITION WORKFORCE 
KEY PERFORMANCE INDICATORS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall implement mandatory key performance in-
dicators (in this section referred to as ‘‘KPIs’’) for evalu-
ating members of the acquisition workforce (as defined in 
10 USC 101). Such KPIs shall be used to assess the degree 
of alignment between activities of such members and stra-
tegic priorities of the Department of Defense, including— 
(1) use of commercial acquisition methods, in-
cluding the use of fixed-price contracts under terms 
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489 
and conditions similar to those used for commercial 
contracts; 
(2) use of innovative acquisition authorities; 
(3) demonstrated preference for commercial solu-
tions; 
(4) integration of small business concerns (as de-
fined under section 3 of the Small Business Act (15 
U.S.C. 632)) and nontraditional defense contractors 
(as defined in section 3014 of title 10, United States 
Code) into the defense industrial base; 
(5) demonstrated cost and schedule efficiencies; 
(6) use of milestone-based, modular open system 
approaches (as defined in section 4401 of title 10, 
United States Code, as amended by section 1833 of 
this Act) and capabilities-based pricing; and 
(7) use of the authorities under chapter 253 of 
title 10, United States Code, and similar tools aimed 
at streamlining and improving the acquisition proc-
ess for the Department of Defense. 
(b) INTEGRATION WITH PERSONNEL SYSTEMS AND 
PROMOTION BOARDS.—The KPIs described in subsection 
(a) shall be integrated into— 
(1) annual performance appraisals for members 
of the acquisition workforce; 
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(2) promotion, bonus, and assignment consider-
ation for acquisition positions; and 
(3) requirements for certification, training, and 
continuing education under chapter 87 of title 10, 
United States Code. 
(c) PUBLIC REPORTING AND OVERSIGHT.—Beginning 
not later than 365 days after the date of the enactment of 
this Act, the Under Secretary of Defense for Acquisition and 
Sustainment shall submit to the congressional defense com-
mittees a semiannual report on— 
(1) progress in implementing KPIs required by 
this section; 
(2) compliance rates by each element of the De-
partment of Defense; 
(3) any barriers to implementation; and 
(4) recommendations for additional legislative 
authorities to carry out the requirements of this sec-
tion. 
(d) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘commercial solutions’’ means any 
method for procurement of a commercial product or 
commercial service as described in part 12 of the Fed-
eral Acquisition Regulation, subparts 212.2 and 
212.70 of the Department of Defense Supplement to 
the Federal Acquisition Regulation, or any product, 
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service, or other solution developed by a private entity 
and funded by private investment that meets the 
needs of the Department of Defense. 
(2) The term ‘‘innovative acquisition authori-
ties’’ means— 
(A) the authority under section 4021 and 
4022 of title 10, United States Code; 
(B) authority to use commercial solutions 
opening contracts pursuant to section 3458 of 
such title 10; 
(C) application of policies of a rapid capa-
bilities office of a military department; or 
(D) any other streamlined acquisition au-
thority. 
(e) SENSE OF CONGRESS.—It is the sense of Congress 
that fostering a risk-tolerant, innovation-forward culture in 
the defense acquisition workforce is essential to maintaining 
the United States technological and military advantage. Ac-
cordingly, the Department of Defense shall prioritize the 
cultivation of acquisition professionals who can effectively 
leverage commercial technology, deliver digital capabilities 
at speed, and expand the industrial base beyond traditional 
vendors. 
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SEC. 838. ENSURING DEPARTMENT OF DEFENSE CON-
TRACTOR 
COMPLIANCE 
WITH 
DISABILITY 
HIRING GOALS. 
(a) IN GENERAL.—For each of fiscal years 2026 
through 2029, the Secretary of Defense shall conduct an 
audit of the compliance of the contractors of the Department 
of Defense with the 7-percent utilization goal for employ-
ment of qualified individuals with disabilities by contrac-
tors established by the Office of Federal Contract Compli-
ance Programs of the Department of Labor under section 
503 of the Rehabilitation Act of 1973 (29 U.S.C. 793). 
(b) REPORTS.—Not later than 5 months after the end 
of a fiscal year for which the Secretary of Defense was re-
quired to conduct an audit under subsection (a), the Sec-
retary of Defense shall submit to the Committees on Armed 
Services of the House of Representatives and the Senate a 
report on the findings of such audit. 
SEC. 839. COMPTROLLER GENERAL REVIEW OF MATTERS 
RELATING TO INDIVIDUALS ASSIGNED TO A 
CRITICAL ACQUISITION POSITION. 
(a) REVIEW REQUIRED.—The Comptroller General of 
the United States shall— 
(1) conduct a review of the education, training, 
and career development programs offered by the Sec-
retary of Defense for members of the acquisition work-
force; and 
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(2) conduct an assessment of the efficacy of the 
career development policies established by section 
1734 of title 10, United States Code. 
(b) MATTERS FOR REVIEW.—In conducting the review 
required by this section, the Comptroller General shall— 
(1) review the compliance of the Secretary with 
the requirements of section 1734 of title 10, United 
States Code; and 
(2) conduct an assessment of the efficacy of the 
career development policies and minimum periods of 
assignment established by such section 1734 in— 
(A) improving the ability of the acquisition 
workforce to expeditiously provide the Armed 
Forces with the capabilities necessary to operate 
effectively, to address evolving threats, and to 
maintain the military advantage of the United 
States in the most cost-effective manner prac-
ticable; 
(B) enhancing the knowledge and experience 
of the acquisition workforce; 
(C) enabling competitive career progression 
of members of the acquisition workforce com-
pared to other members of the civilian and mili-
tary workforce of the Department of Defense that 
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are not subject to the minimum periods of as-
signment established by such section 1734; and 
(D) the retention rates of members of the ac-
quisition workforce assigned to a critical acquisi-
tion position, particularly key leadership posi-
tions (as defined by the Under Secretary of De-
fense for Acquisition and Sustainment), com-
pared with the retention rates for other members 
of the civilian and military workforce of the De-
partment of Defense that are not subject to the 
minimum periods of assignment established by 
such section 1734; and 
(3) conduct an assessment of any benefits, in-
cluding enhanced accountability in leadership and de-
cisionmaking by individuals in key leadership posi-
tions, of a minimum period of assignment of at least 
four years to a critical acquisition position. 
(c) REPORT REQUIRED.—Not later than July 1, 2026, 
the Comptroller General shall submit to the congressional 
defense committees recommendations on— 
(1) improvements to education, training, and ca-
reer development programs offered by the Secretary of 
Defense for members of the acquisition workforce; and 
(2) minimum periods of assignment for an indi-
vidual assigned as a program executive officer. 
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SEC. 840. COMPTROLLER GENERAL REVIEW OF THE MAN-
AGEMENT, TRAINING, AND DEVELOPMENT OF 
THE ACQUISITION WORKFORCE. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a review of the management, 
training, and development of the acquisition workforce to 
enable the acquisition workforce to expeditiously provide the 
Armed Forces with the capabilities necessary to operate ef-
fectively, to address evolving threats, and to maintain the 
military advantage of the United States in the most cost- 
effective manner practicable. 
(b) REVIEW CONTENTS.—In conducting the review re-
quired by subsection (a), the Comptroller General shall 
evaluate the following: 
(1) The current organization and staffing of the 
acquisition workforce, including the total number of 
positions in the acquisition workforce, a list of such 
positions disaggregated by the skills and experience 
required, and the number of such positions that are 
vacant or are filled by an individual whose skills and 
experience do not meet the required skills and experi-
ence for such position. 
(2) The sufficiency of the processes and authori-
ties of the Department of Defense for recruiting and 
retaining the acquisition workforce, and the use of 
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such authorities to maintain an acquisition workforce 
that is optimized to meet mission requirements. 
(3) Trends in acquisition workforce hiring and 
retention over the preceding five years. 
(4) The impediments to members of the acquisi-
tion workforce receiving training and education, in-
cluding any lack of funding, unavailability of re-
quired or desired training, and excessive workload de-
mands that preclude such members from being able to 
attend such training. 
(c) REPORT.—Not later than April 1, 2026, the Comp-
troller General shall submit to the congressional defense 
committees a report on the findings of the review required 
by subsection (a), including any recommendations to im-
prove the management, training, and development of the 
acquisition workforce. 
(d) ACQUISITION WORKFORCE DEFINED.—In this sec-
tion, the term ‘‘acquisition workforce’’ has the meaning 
given such term in section 101(a) of title 10, United States 
Code. 
SEC. 841. REPORT ON STRENGTHENING THE DEFENSE AC-
QUISITION UNIVERSITY. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense, acting through the Director of the Acquisition Innova-
tion Research Center, shall conduct a comprehensive assess-
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ment of the Defense Acquisition University (in this section 
referred to as ‘‘DAU’’) to strengthen the ability of the DAU 
to train and develop members of the acquisition workforce 
to meet future needs of the Department of Defense. The as-
sessment shall include the following: 
(1) An evaluation of the mission of the DAU and 
the alignment of such mission with the objectives of 
the defense acquisition system established pursuant to 
section 3102 of title 10, United States Code (as added 
by this Act). 
(2) An evaluation of the effectiveness of training 
and development provided by DAU to members of the 
acquisition workforce to enable such members to effec-
tively implement the objectives of the defense acquisi-
tion system. 
(b) ELEMENTS.—The assessment in paragraph (1) 
shall evaluate the following: 
(1) The organization and structure of DAU. 
(2) The curriculum and educational offerings of 
DAU. 
(3) The composition of the staff and faculty of 
DAU, including an assessment of the diversity of 
skills, abilities, and professional backgrounds of such 
staff and faculty. 
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(4) The sufficiency of resource and funding 
mechanisms supporting DAU operations. 
(5) The extent to which DAU uses external ex-
perts and academic institutions to inform and en-
hance its programs. 
(c) RECOMMENDATIONS.—The Director of the Acquisi-
tion Innovation Research Center shall use the assessment 
required under this section and the objectives of the defense 
acquisition system to provide to the Secretary of Defense 
recommendations to strengthen the ability of the DAU to 
train and develop members of the acquisition workforce to 
meet future needs of the Department of Defense. 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense commit-
tees a report containing— 
(1) the findings of the assessment conducted 
under subsection (a) and the recommendations pro-
vided under subsection (c); 
(2) any actions necessary to ensure that DAU 
fulfills its mission and provides training and develop-
ment to members of the acquisition workforce that 
aligns with the objectives of the defense acquisition 
system. 
(e) DEFINITIONS.—In this section: 
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(1) The term ‘‘Acquisition Innovation Research 
Center’’ means the acquisition research organization 
within a civilian college or university that is de-
scribed under section 4142(a) of title 10, United 
States Code. 
(2) The term ‘‘acquisition workforce’’ has the 
meaning given in section 101 of title 10, United 
States Code. 
Subtitle D—Provisions Relating to 
Supply Chains and Domestic 
Sourcing 
SEC. 851. REPEAL OF EXCEPTION FOR SMALL PURCHASES 
UNDER THE BERRY AMENDMENT. 
Section 4862 of title 10, United States Code, is amend-
ed— 
(1) in subsection (a), by striking ‘‘subsections (c) 
through (h)’’ and inserting ‘‘subsections (c) through 
(g)’’; and 
(2) by amending subsection (h) to read as fol-
lows: 
‘‘(h) OVERSIGHT COMMITTEE.—The Secretary of De-
fense shall establish a committee to— 
‘‘(1) provide oversight of the implementation of 
the requirements of this section; and 
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‘‘(2) ensure compliance with the requirements of 
this section.’’. 
SEC. 852. SUPPLY CHAIN ILLUMINATION INCENTIVES. 
(a) IN GENERAL.—Section 849 of the Servicemember 
Quality of Life Improvement and National Defense Author-
ization Act for Fiscal Year 2025 (Public Law 118-159; 10 
U.S.C. 3241 note prec.) is amended— 
(1) in subsection (a), by striking ‘‘to assess and 
monitor’’ and all that follows and inserting the fol-
lowing: ‘‘to implement and use supply chain illu-
mination meeting the minimum qualifying criteria 
determined by the Secretary under subsection (c).’’; 
and 
(2) by adding at the end the following new sub-
sections: 
‘‘(c) SUPPLY CHAIN ILLUMINATION MINIMUM QUALI-
FYING CRITERIA.— 
‘‘(1) IN
GENERAL.—The Secretary of Defense 
shall establish minimum qualifying criteria for sup-
ply chain illumination for contractors of the Depart-
ment of Defense. 
‘‘(2) PUBLIC NOTICE.—Not later than April 1, 
2026, the Secretary of Defense shall publish in the 
Federal Register a notice of the minimum qualifying 
criteria established under paragraph (1). 
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‘‘(d) EXPEDITED ACCEPTANCE PROCEDURES.—If a 
contractor discloses to the relevant contracting officer that 
a covered end item was or will be provided by such con-
tractor to the Department of Defense under a contract or 
other agreement, such contracting officer may continue to 
accept and pay for delivery of such covered end item until 
a waiver authorized under each applicable covered statute 
with respect to such covered end item is granted or denied 
if— 
‘‘(1) such contractor has supply chain illumina-
tion that meets the minimum qualifying criteria es-
tablished by the Secretary of Defense under subsection 
(c); and 
‘‘(2) such contracting officer determines that 
such covered end item— 
‘‘(A) other than a prohibition on acquisi-
tion under a covered statute applying to such 
covered end item, satisfies the requirements of the 
contract or other agreement; and 
‘‘(B) does not pose a risk to security or safe-
ty. 
‘‘(e) CONTRACTOR RESPONSIBILITY.— 
‘‘(1) IMMEDIATE CORRECTIVE ACTION.—A con-
tractor of the Department of Defense shall, upon iden-
tifying a nonconforming item in a covered end item 
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that was or will be provided by such contractor to the 
Department under a contract or other agreement, im-
mediately begin taking corrective action with respect 
to the inclusion of such nonconforming item in such 
covered end item in accordance with such contract or 
other agreement and the relevant procedures of the 
Department. 
‘‘(2) ALTERNATIVE SUPPLIERS.—The corrective 
action described in paragraph (1) with respect to a 
nonconforming item in a covered end item shall in-
clude the contractor using reasonably expedient means 
to identify, and if necessary, qualify an alternative 
supplier to provide materials or goods to use in place 
of such non-conforming item in such end item. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered statute’ means— 
‘‘(A) section 4863 of this title; 
‘‘(B) section 4872 of this title; 
‘‘(C) section 805 of the National Defense 
Authorization Act for Fiscal Year 2024 (Public 
Law 118-31; 10 U.S.C. 4651 note prec.); or 
‘‘(D) section 1211 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 10 U.S.C. 4651 note prec.). 
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‘‘(2) The term ‘covered end item’ means an end 
item the acquisition of which is prohibited under a 
covered statute based on a nonconforming item that 
is contained in or a component of such end item, ex-
cept that such term does not include an end item that 
is a non-conforming item. 
‘‘(3) The term ‘end item’ has the meaning given 
such term in section 4863(m) of this title. 
‘‘(4) The term ‘nonconforming item’ means a 
material or good the inclusion of which in an end 
item causes the acquisition of such end item to be pro-
hibited under a covered statute. 
‘‘(5) The term ‘supply chain illumination’ means 
policies, procedures, and tools, including analytical 
tools that leverage large data and machine learning, 
enabling such contractor to assess and monitor the en-
tire supply chain of such contractor to identify poten-
tial vulnerabilities and security and noncompliance 
risks with respect to goods and services provided to 
the Department of Defense.’’. 
(b) REPORTING.—Not later than one year after the 
date of the enactment of this Act, and annually thereafter 
until the date that is five years after the date of the enact-
ment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report describing 
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each use of the authority under section 849(d) of the Serv-
icemember Quality of Life Improvement and National De-
fense Authorization Act for Fiscal Year 2025 (Public Law 
118–159; 10 U.S.C. 3241 note prec.), as added by subsection 
(a). 
SEC. 853. MODIFICATION TO ENHANCED DOMESTIC CON-
TENT REQUIREMENT FOR MAJOR DEFENSE 
ACQUISITION PROGRAMS. 
Section 835(c) of the National Defense Authorization 
Act for Fiscal Year 2024 (Public Law 118–31) is amended 
to read as follows: 
‘‘(c) MAJOR DEFENSE ACQUISITION PROGRAM.—In 
this section, the term ‘major defense acquisition program’ 
has the meaning given in section 4201 of title 10, United 
States Code, except that such term includes any program 
that meets the meaning given in such section as in effect 
on January 1, 2025.’’. 
SEC. 854. STRATEGY TO ELIMINATE SOURCING OF OPTICAL 
GLASS FROM CERTAIN NATIONS. 
(a) IN GENERAL.—The Secretary of Defense shall de-
velop and implement a strategy to eliminate the reliance 
of the Department of Defense on any covered nation to ac-
quire optical glass or optical systems by January 1, 2030. 
(b) STRATEGY
REQUIREMENTS.—The strategy re-
quired by subsection (a) shall— 
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(1) identify the current requirements of the De-
partment of Defense for optical glass and optical sys-
tems and estimate the projected requirements of the 
Department for optical glass and optical systems 
through the year 2040; 
(2) identify the sources of optical glass or optical 
systems used to meet the current requirements of the 
Department described in paragraph (1), including 
any sources of optical glass or optical glass systems 
produced in a covered nation; and 
(3) identify actions to be taken by the Secretary 
of Defense to ensure the defense industrial base is able 
to meet the needs of the Department for optical glass 
and optical systems without any reliance on a covered 
nation not later January 1, 2030. 
(c) IMPLEMENTATION.—Not later than 270 days after 
the date of enactment of this Act, the Secretary of Defense 
shall begin implementing the strategy required by sub-
section (a). 
(d) BRIEFING AND REPORT.— 
(1) BRIEFING.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense com-
mittees a briefing on the strategy required by sub-
section (a), including an identification of any 
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changes to funding or policy required to eliminate the 
reliance of the Department of Defense on any covered 
to acquire optical glass or optical systems by January 
1, 2030. 
(2) INTERIM REPORT ON IMPLEMENTATION.—Not 
later than March 15, 2027, the Secretary of Defense 
shall submit to the congressional defense committees a 
report on the progress of the implementation of the 
strategy required by subsection (a), including an 
identification of any risk to the ability of the Sec-
retary to eliminate the reliance of the Department of 
Defense on any covered nation to acquire optical glass 
or optical systems by January 1, 2030. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘covered nation’’ means— 
(A) the Democratic People’s Republic of 
North Korea; 
(B) the People’s Republic of China; 
(C) the Russian Federation; 
(D) the Republic of Belarus; and 
(E) the Islamic Republic of Iran. 
(2) The term ‘‘optical glass’’ means glass used in 
optical lenses, prisms, or mirrors. 
(3) The term ‘‘optical system’’ means an ar-
rangement of optical components, including optical 
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glass, that manipulates light to produce a specific 
outcome. 
SEC. 855. VOLUNTARY REGISTRATION OF COMPLIANCE 
WITH COVERED SOURCING REQUIREMENTS 
FOR COVERED PRODUCTS. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish and maintain a publicly available online repository 
of information provided by an offeror related to the con-
formance of a covered product with covered sourcing re-
quirements. 
(b) REGISTRATION AND ATTESTATION PROCESS.—Not 
later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall establish a process under 
which an offeror may voluntarily submit to the Secretary 
an attestation relating to the compliance of a covered prod-
uct with a covered sourcing requirement. Such process 
shall— 
(1) be accessible online; 
(2) require an offeror to acknowledge liability for 
making a false attestation in accordance with section 
3729 of title 31, United States Code; and 
(3) enable an offeror to register a covered prod-
uct with the Secretary of Defense by providing— 
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(A) a unique product identifier sufficient to 
distinguish the covered product to be registered 
from a similar covered product; 
(B) a national stock number (if available), 
a description of the covered product, or other in-
formation related to the form, fit, or function of 
the covered product; and 
(C) an attestation, including relevant docu-
mentation, of the compliance of a covered prod-
uct with one or more covered sourcing require-
ments. 
(c) PROOF OF REGISTRATION.—The Secretary shall 
issue to an offeror that registers a covered product in ac-
cordance with the process established under subsection 
(b)(3) a proof of registration associated with a the unique 
product identifier of the covered product. The proof of reg-
istration may be used— 
(1) by the offeror in sales and marketing mate-
rials associated with the registered covered product; or 
(2) by a prime contractor that uses such reg-
istered covered product as a part or component of an 
end item. 
(d) AVAILABILITY OF INFORMATION.— 
(1) COMPLIANCE INFORMATION.—The Secretary 
shall make available the information necessary to en-
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able offerors to assess the compliance of a covered 
product with a covered sourcing requirement. 
(2) RESOURCES.—The Secretary shall ensure 
that an eligible entity has adequate resources to train 
offerors about the requirements of this section and to 
assist an offeror with the registration and attestation 
process established under subsection (b). 
(e) ENCOURAGING REGISTRATION OF PRODUCTS.—The 
Secretary shall establish policies and procedures to encour-
age offerors to register covered products. These policies and 
procedures shall ensure that— 
(1) offerors are incentivized to disclose any non-
compliance with the requirements of this section; 
(2) with respect to any disclosure made under 
paragraph (1), that such offeror is provided with in-
formation and assistance to determine the actions re-
quired to remedy such noncompliance in order to 
meet the criteria to register the product concerned; 
and 
(3) an offeror making such a disclosure will re-
ceive a referral to the appropriate programs or offices 
of the Department of Defense that are responsible for 
strengthening the defense industrial base, promoting 
domestic industry, and accelerating private invest-
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ment in supply chain technologies that are critical for 
national security. 
(f) USE OF SUPPLY CHAIN ILLUMINATION.—The Sec-
retary shall encourage an offeror to implement and use sup-
ply chain illumination (as defined in section 849 of the 
National Defense Authorization Act for Fiscal Year 2025, 
as amended by section 852 of this Act) to assist in meeting 
the registration and attestation requirements established 
under subsection (b). 
(g) DEFINITIONS.—In this section: 
(1) The term ‘‘covered product’’ means— 
(A) a good offered for purchase to the Sec-
retary of Defense; and 
(B) subject to a covered sourcing require-
ment. 
(2) The term ‘‘covered sourcing requirement’’ 
means a requirement under any of the following: 
(A) Section 4872 of title 10 United States 
Code. 
(B) Section 4863 of title 10, United States 
Code. 
(C) Section 4862 of title 10, United States 
Code. 
(D) Section 4864 of title 10, United States 
Code. 
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(E) Chapter 83 of title 41, United States 
Code. 
(F) Section 846 of the National Defense Au-
thorization Act for Fiscal Year 2011 (10 U.S.C. 
4864 note). 
(G) Section 1211 of the National Defense 
Authorization Act for Fiscal Year 2006 (10 
U.S.C. 4651 note prec.). 
(H) Section 225.7004-5 of the Department 
of Defense Supplement to the Federal Acquisition 
Regulation (relating to restrictions on procure-
ment of welded shipboard anchor and mooring 
chain). 
(I) Section 225.7011 of the Department of 
Defense Supplement to the Federal Acquisition 
Regulation (relating to restrictions on procure-
ment of carbon, alloy, or armor steel plates). 
(J) Section 225.7012 of the Department of 
Defense Supplement to the Federal Acquisition 
Regulation (relating to restrictions on procure-
ment of supercomputers). 
(3) The term ‘‘eligible entity’’ means an eligible 
entity carrying out activities pursuant to a procure-
ment technical assistance program funded under 
chapter 388 of title 10, United States Code. 
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SEC. 856. ACCELERATION OF QUALIFICATION OF COMPLI-
ANT SOURCES. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish in the Defense Industrial Resil-
ience Consortium established under section 1842 a 
working group for the exchange of information about 
compliant materials and to accelerate the qualifica-
tion of such materials for use by the Department of 
Defense and the integration of such materials into the 
supply chains of contractors of the Department of De-
fense. 
(2) MEMBERSHIP.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the working group shall con-
sist of members of the Defense Industrial Resil-
ience Consortium with expertise or interest in— 
(i) the qualification and acceptance of 
materials, parts, components and end items 
by the Department of Defense; 
(ii) supply chain management; or 
(iii) supply chain illumination. 
(B) EXCLUSION.—The Secretary may ex-
clude from participation in such working group 
any individual or entity that— 
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(i) is headquartered within, owned or 
controlled by, or subject to the influence of 
a covered nation; 
(ii) is functioning as the agent of any 
foreign State; or 
(iii) is otherwise determined by the 
Secretary to be a significant threat to the 
national security interests of the United 
States. 
(3) RESPONSIBILITIES.—The working group 
shall— 
(A) establish processes for exchange of infor-
mation about compliant materials among con-
sortium members, procurement agents of the De-
partment of Defense, and contractors of the de-
fense industrial base, while maintaining appro-
priate safeguards of commercially proprietary 
information; 
(B) develop processes and procedures to 
streamline identification, testing, and qualifica-
tion of compliant sources and compliant mate-
rials; 
(C) seek to reduce the unnecessary applica-
tion of requirements that specific to a single 
Armed Force for identification, testing, and 
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qualification of compliant sources and compliant 
material; 
(D) provide a forum for the Army, Navy, 
Air Force, Marine Corps, and Space Force and 
other elements of the Department of Defense to 
share technical and supply chain data related to 
requirements for covered materials; 
(E) identify compliant sources at each step 
of the supply chain, to the extent that such sup-
ply chains are subject to subchapter III of chap-
ter 385 of title 10, United States Code; 
(F) at least once a quarter, publish for the 
members of the consortium and for the Under 
Secretary 
of 
Defense 
for 
Acquisition 
and 
Sustainment, a list of compliant sources for each 
critical material, including a general description 
of what step of the supply chain in which each 
compliant source is participating, if any; 
(G) develop and recommend processes to en-
able the Department of Defense to rapidly iden-
tify, qualify, and integrate compliant materials 
into programs of the Department at scale; 
(H) seek to reduce future requirements for 
critical materials in defense systems by encour-
aging contractors of the Department of Defense 
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to design and develop systems that use commer-
cially available critical materials, when such 
materials are capable of meeting mission needs; 
(I) seek input from small and nontradi-
tional contractors and ensure the working group 
considers the unique attributes of such businesses 
in carrying out the responsibilities of this sub-
section; 
(J) develop and provide recommendations to 
reduce impediments or disincentives for a sup-
plier of an end item to the Department of De-
fense to revise a supply chain agreement or other 
arrangement, to eliminate the reliance of the 
supplier on noncompliant sources; 
(K) any other matters assigned to the work-
ing group by the Secretary; and 
(L) provide the Secretary with timely rec-
ommendations developed pursuant to this sec-
tion. 
(b) REPLACEMENT
OF
EXISTING
NONCOMPLIANT 
PARTS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall 
develop and implement guidance to ensure that crit-
ical materials from noncompliant sources that are 
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present in covered systems of the Department of De-
fense are identified and replaced as rapidly as prac-
ticable with compliant materials. 
(2) REQUIREMENTS.—The guidance required by 
(1) shall— 
(A) ensure that a supplier of an end item 
is actively managing the supply chain, and shall 
address impediments or disincentives for the sup-
plier to revise a supply chain agreement or other 
arrangement to eliminate the supplier’s reliance 
on noncompliant sources; 
(B) require the use of compliant sources in-
cluded on the list required by paragraph 
(a)(3)(F), where appropriate; 
(C) require use of commercial qualification 
processes to the maximum extent practicable in 
determining whether a new supplier is capable of 
meeting defense requirements; 
(D) minimize the number of qualification 
events required, including minimizing the use of 
real-world testing, when replacing components or 
raw materials with functionally identical com-
mercial offerings; 
(E) provide for waiver of defense-unique 
qualification requirements, including operational 
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test and evaluation processes, unless compliance 
with such requirements is determined to be essen-
tial by the head of the contracting activity: and 
(F) prohibit additional testing of the end 
item if a component or subcomponent has shown 
to have substantially similar or identical per-
formance after replacement of a noncompliant 
critical material with a compliant critical mate-
rial, except where the service acquisition execu-
tive determines otherwise. 
(3) SAFE
HARBOR.—The Secretary of Defense 
shall deem that any acquisition of a critical material, 
by the Department, a contractor to the Department, 
or a subcontractor at any tier, from a supplier of 
critical materials that is included on the list required 
by paragraph (a)(3)(F), is in compliance with the re-
quirements of subchapter III of chapter 385 of this 
title, if— 
(A) the supplier of a critical material was 
on the most recent such list of compliant sources 
for such critical material at the time the acquisi-
tion contract or other agreement was entered 
into; 
(B) the supplier is included on such a list 
not less frequently than once every two years 
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during the period beginning on the date on 
which such contract or other agreement is en-
tered into and ending on the date on which such 
contract or other agreement expires or termi-
nates; and 
(C) it would have created an unreasonable 
hardship, including an interruption of needed 
supplies or significantly different cost, for the ac-
quiring entity to switch suppliers to a compliant 
source during the time between the signing of the 
contract or other agreement and the time of de-
livery under such contract or other agreement. 
(4) RESPONSIBLE INDIVIDUAL.—The service ac-
quisition executive for each service or agency shall, for 
each program under supervision of such service acqui-
sition executive, identify the individual responsible 
for establishing the statement of work and qualifica-
tion requirements associated with the replacement of 
components or raw materials critical materials from 
noncompliant sources in covered systems as required 
by this section. 
(5) COMMERCIAL
ITEMS.—The Secretary shall 
ensure that the guidance required by this subsection 
applies to commercial products and commercial off- 
the-shelf items to the extent that the requirements of 
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chapter 385 of title 10, United States Code, apply to 
commercial products and commercial off-the-shelf 
items. 
(c) ACCESS TO MATERIALS.—Notwithstanding section 
4872(a) of title 10, United States Code, the Department of 
Defense is authorized to procure a covered material stock-
piled in an allied or partner nation if such covered material 
has been under uninterrupted control by an entity in such 
allied or partner nation since 2000. 
(d) FUNDING ESTIMATES.—Not later than five days 
after the date on which the Secretary of Defense submits 
to Congress the materials in support of the budget submitted 
by the President to Congress under section 1105 of title 31, 
United States Code, for a fiscal year, the Under Secretary 
of Defense for Acquisition and Sustainment, in collabora-
tion with the service acquisition executives of the military 
departments, shall submit to the congressional defense com-
mittees a comprehensive estimate of the funds necessary to 
provide for the qualification and integration of compliant 
sources into the covered systems of each military depart-
ment. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘compliant country’’ means a 
country that is not a covered nation. 
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(2) The term ‘‘compliant source’’ means an enti-
ty engaged in the production, manufacture, or dis-
tribution of a critical material that is compliant with 
the requirements of subchapter III of chapter 385 of 
title 10, United States Code. 
(3) The term ‘‘compliant material’’ means crit-
ical material that is sourced from a compliant source. 
(4) The term ‘‘covered nation’’ has the meaning 
given such term in section 4872(h) of title 10, United 
States Code (as redesignated by this Act). 
(5) The term ‘‘covered system’’ means an end 
item that is currently in production or has been de-
livered to the Department of Defense. 
(6) The term ‘‘critical material’’ means a mate-
rial subject to sourcing restrictions under subchapter 
III of chapter 385 of title 10, United States Code. 
(7) The term ‘‘end item’’ has the meaning given 
such term in section 4863 of title 10, United States 
Code. 
(8) The term ‘‘service acquisition executive’’ has 
the meaning given such term in section 101(a) of title 
10, United States Code. 
(9) The term ‘‘working group’’ means the work-
ing group established under subsection (a). 
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SEC. 857. ENHANCED SECURITY STRATEGY FOR PRIVATE 
FIFTH GENERATION INFORMATION AND COM-
MUNICATIONS CAPABILITIES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall require a contractor for a procurement related to fifth- 
generation wireless technology for private networks on mili-
tary installations to provide the information described in 
subsection (b) to promote enhanced wireless network secu-
rity requirements, including supply chain risk manage-
ment. 
(b) INFORMATION DESCRIBED.—The information de-
scribed in this subsection is as follows: 
(1) A hardware bill of materials for a procure-
ment described in subsection (a). 
(2) A description of the implementation and 
operational use of zero trust principles and capabili-
ties for such procurement. 
(c) PRIORITIZATION.—With respect to a procurement 
described in subsection (a), the Secretary shall prioritize 
the use of private networks that employ Open-RAN ap-
proaches, including cloud-native capabilities. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘military installation’’ has the 
meaning given in section 2801 of title 10, United 
States Code. 
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(2) The term ‘‘Open-RAN’’ means section 9202 
of title XCII of the National Defense Authorization 
Act for Fiscal Year 2021. 
SEC. 858. PREFERENCE FOR DOMESTIC PROCUREMENT OF 
PROFESSIONAL SERVICES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall revise the Department of Defense Supplement to the 
Federal Acquisition Regulation— 
(1) to require, to the maximum extent prac-
ticable and consistent with the interests of national 
security, preference for procurement of professional 
services from offerors that are United States compa-
nies; and 
(2) to allow the Secretary discretion to waive the 
requirements of paragraph (1) if the Secretary deter-
mines that— 
(A) compliance with such requirements 
would result in the Department of Defense fail-
ing to meet an urgent operational requirement; 
or 
(B) no United States company or quali-
fying joint venture is capable of fulfilling the re-
quirements of the contract in a timely or cost-ef-
fective manner. 
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(b) WAIVER REQUIREMENTS.—A waiver described in 
subsection (a)(2) shall be issued in writing, shall include 
a justification for such issuance, and shall be submitted to 
the congressional defense committees not later than 30 days 
after such issuance. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘United States company’’ means 
an entity that— 
(A) is organized under the laws of a State, 
territory, or possession of the United States or 
the District of Columbia; 
(B) has its principal place of business in 
the United States; and 
(C) is not directly or indirectly owned or 
controlled by a foreign entity 
(2) The term ‘‘professional services’’ includes 
services in the fields of engineering, architecture, de-
sign, environmental consulting, financial consulting, 
program management, legal advisory, and other ex-
pert services as defined in the Federal Acquisition 
Regulation. 
(3) The term ‘‘qualifying joint venture’’ means a 
joint venture in which a United States company 
holds an ownership interest greater than 50 percent. 
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Subtitle E—Prohibitions and 
Limitations on Procurement 
SEC. 861. REQUIREMENTS RELATING TO LONG-TERM CON-
CESSIONS AGREEMENTS WITH CERTAIN RE-
TAILERS. 
(a) IN GENERAL.—Chapter 363 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 4664. Requirements relating to long-term conces-
sions agreements with certain retailers 
‘‘(a) PROHIBITION ON CONTRACTING WITH CERTAIN 
RETAILERS.—(1) The Secretary of Defense may not renew, 
extend, or enter into a long-term concessions agreement with 
a retailer that is controlled by a covered nation to permit 
such retailer to operate or conduct business through a phys-
ical location on a covered military installation. 
‘‘(2) The Secretary may waive the requirements of 
paragraph (1) if the Secretary determines that— 
‘‘(A) the goods or services to be provided by the 
retailer are vital for the welfare and morale of mem-
bers of the Armed Forces and no reasonable alter-
natives exist; 
‘‘(B) the Secretary has implemented adequate 
measures to mitigate any potential national security 
risks of the retailer; and 
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‘‘(C) the retailer has received a determination 
from the Committee on Foreign Investment in the 
United States (in this section referred to as the ‘Com-
mittee’) that there are no unresolved national security 
concerns with respect to the retailer in connection to 
a matter submitted to the Committee and which the 
Committee concluded all action pursuant to section 
721 of the Defense Production Act of 1950 (50 U.S.C. 
4565). 
‘‘(3) Not later than 30 days after each use of the waiver 
authority under paragraph (2), the Secretary shall submit 
to the Committees on Armed Services of the House of Rep-
resentatives and Senate a report including a justification 
for the use of such authority and a description of any risk 
mitigation strategies described in paragraph (2)(B). 
‘‘(4) With respect to a retailer that has misrepresented 
the ownership and control of such retailer for the award 
of a long-term concessions agreement, the Secretary of De-
fense may terminate such agreement. 
‘‘(5) Paragraph (1) shall apply with respect to a long- 
term concessions agreement entered into on or after the date 
of the enactment of this section. 
‘‘(b) COVERED RETAILERS.—(1) The Secretary of De-
fense may not permit a covered retailer controlled by a cov-
ered nation to operate or conduct business through a phys-
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ical location on a covered military installation, unless such 
covered retailer has received an approval determination 
under paragraph (4). 
‘‘(2) Not later than 30 days after the date of the enact-
ment of this section, a covered retailer— 
‘‘(A) shall submit to the Committee a notice that 
includes any direct or indirect relationships between 
the covered retailer (including any subsidiaries or 
parent companies of such covered retailer) and any 
covered nation; and 
‘‘(B) may not operate or conduct business 
through a physical location on a covered military in-
stallation unless the Committee submits a determina-
tion approving such notice in accordance with para-
graph (3). 
‘‘(3) The Committee shall conduct an investigation of 
the effects of a notice submitted under paragraph (2) on 
the national security of the United States, including an as-
sessment of any direct or indirect relationships between the 
covered retailer (including any subsidiaries or parent com-
panies of such covered retailer) and any covered nation. 
‘‘(4) Not later than 180 days after completing an in-
vestigation under paragraph (3), the Committee shall sub-
mit to the Secretary of Defense a determination approving 
or disapproving the notice submitted under paragraph (2). 
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‘‘(5)(A) A covered retailer that receives an approval 
under paragraph (4) shall submit annually to the Com-
mittee disclosures regarding any change in the ownership 
structure that may affect whether or not the covered retailer 
is controlled by a covered nation. 
‘‘(B) The Secretary of Defense shall immediately ter-
minate a long-term concession agreement with a covered re-
tailer if the Secretary determines such covered retailer has 
failed to comply with the requirements of this subsection. 
‘‘(c) ASSESSMENT OF COVERED RETAILERS.—(1) Not 
later than 180 days after the date of the enactment of this 
section, the Secretary of Defense shall review each long-term 
concessions agreement with a covered retailer that permits 
the covered retailer to operate or conduct business through 
a physical location on a covered military installation to 
assess any direct or indirect relationships between the re-
tailer (including any subsidiaries or parent companies of 
such covered retailer) and any covered nation. 
‘‘(2) Not later than 30 days after making a determina-
tion that a covered retailer is controlled by a covered nation 
based on an assessment described in subsection (a) or a de-
termination made under subsection (b), the Secretary of De-
fense shall terminate any long-term concessions agreement 
with the covered retailer. 
‘‘(d) DEFINITIONS.—In this section: 
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‘‘(1) The term ‘controlled by a covered nation’ 
means, with respect to a retailer— 
‘‘(A) that the retailer is organized under the 
laws of a covered nation or any jurisdiction 
within a covered nation; 
‘‘(B) that a covered nation owns 20 percent 
or more of the shares of the retailer; or 
‘‘(C) that the retailer is subject to the direct 
or control of a covered nation. 
‘‘(2) The term ‘covered military installation’ 
means a military installation (as defined in section 
2801 of this title) located in the United States. 
‘‘(3) The term ‘covered nation’ has the meaning 
given in section 4872 of this title. 
‘‘(4) The term ‘covered retailer’ means a retailer 
that is performing a long-term concessions agreement 
on or before the date of the enactment of this Act. 
‘‘(5) The term ‘long-term concessions agreement’ 
means a contract, subcontract (at any tier), or other 
agreement, including a lease agreement or licensing 
agreement, to operate a business through a physical 
location on a covered military installation entered 
into by— 
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‘‘(A) the Secretary of Defense or a Secretary 
of a military department and a person, includ-
ing a nonappropriated fund instrumentality; or 
‘‘(B) a person and a nonappropriated fund 
instrumentality. 
‘‘(6) The term ‘retailer’ means— 
‘‘(A) a nonappropriated fund instrumen-
tality that operates or seeks to operate a business 
through a physical location on a covered mili-
tary installation; 
‘‘(B) any other person that operates or seeks 
to operate a business on a covered military in-
stallation under a contract, subcontract (at any 
tier), or other agreement, including a lease agree-
ment or licensing agreement, with— 
‘‘(i) a nonappropriated fund instru-
mentality; 
‘‘(ii) the Secretary of Defense; or 
‘‘(iii) a Secretary of a military depart-
ment.’’. 
(b) ASSESSMENT OF COVERED RETAILERS.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall review each long-term concessions agree-
ment with a covered retailer that permits the covered 
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retailer to operate or conduct business through a 
physical location on a covered military installation to 
assess any direct or indirect relationships between the 
retailer (including any subsidiaries or parent compa-
nies of such covered retailer) and any covered nation. 
(2) TERMINATION.—Not later than one year 
after making a determination that a covered retailer 
is controlled by a covered nation based on an assess-
ment described in subsection (a), the Secretary of De-
fense shall terminate any long-term concessions agree-
ment with the covered retailer. 
(3) DEFINITIONS.—In this section, the terms 
‘‘covered nation’’, ‘‘covered retailer’’, and ‘‘long-term 
concessions agreement’’ have the meanings given, re-
spectively, in section 4664 of title 10, United States 
Code, as added by this section. 
SEC. 862. PROHIBITION ON CONTRACTING WITH ENTITIES 
WITH SEGREGATED FACILITIES. 
Chapter 363 of title 10, United States Code, as amend-
ed by section 861 of this Act, is further amended by adding 
at the end the following new section: 
‘‘§ 4665. Prohibition on contracting with entities with 
segregated facilities 
‘‘Each contract, including a subcontract (at any tier) 
under such a contract, entered into by the Secretary of De-
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fense on or after the date of the enactment of this section 
shall include a provision requiring that each contractor fol-
low all Federal laws, including title II of the Civil Rights 
Act of 1964 (42 U.S.C. 2000a et seq.), which prohibit seg-
regated facilities.’’. 
SEC. 863. REQUIREMENT FOR CONTRACTORS TO PROVIDE 
REASONABLE ACCESS TO REPAIR MATERIALS. 
(a) IN GENERAL.—Chapter 363 of title 10, United 
States Code, as amended by section 862 of this Act, is fur-
ther amended by adding at the end the following new sec-
tion: 
‘‘§ 4666. Requirement for contractors to provide rea-
sonable access to repair materials 
‘‘(a) REQUIREMENT.—An agency may not enter into 
a contract for the procurement of reparable goods or repair 
services in support of major weapon systems unless the con-
tractor agrees in writing to provide the Department of De-
fense fair and reasonable access to all the repair materials, 
including parts, tools, and information, used by the manu-
facturer or provider or their authorized repair providers to 
diagnose, analyze, maintain, or repair the good or service. 
‘‘(b) WAIVER.—The Secretary of Defense, or the head 
of the procuring agency in the case of a delegated authority, 
may waive the requirements of this section with respect to 
a particular contract or class of contracts upon a written 
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determination that application of those requirements would 
have a negative impact on cost, schedule, or technical per-
formance. 
‘‘(c) PROTECTION
FOR INTELLECTUAL PROPERTY, 
PROPRIETARY, AND TRADE SECRET INFORMATION.—Noth-
ing in this section shall be construed to permit the unau-
thorized disclosure or release of intellectual property, com-
mercially confidential information, or trade secrets. The 
Secretary of Defense shall take all necessary steps to protect 
such information from disclosure to the extent otherwise 
protected by law. 
‘‘(d) FAIR AND REASONABLE ACCESS DEFINED.—In 
this section, the term ‘fair and reasonable access’ means, 
as applicable— 
‘‘(1) prices, terms, and conditions that allow the 
Department of Defense the rights to provide the repair 
materials to an authorized contractor consistent with 
section 3771 of title 10, United States Code, and the 
Government’s product support strategy; 
‘‘(2) provision at prices, terms, and conditions 
that are equivalent to the most favorable prices, 
terms, and conditions under which the manufacturer 
or an authorized reseller or distributor offers the re-
pair material to an authorized repair provider, ac-
counting for any discount, rebate, convenient and 
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timely means of delivery, means of enabling fully re-
stored and updated functionality, rights of use, or 
other incentive or preference the manufacturer or an 
authorized reseller or distributor offers to an author-
ized repair provider; 
‘‘(3) if a manufacturer does not offer, directly or 
through an authorized reseller or distributor, the re-
pair material to any authorized repair provider, then 
provision of such repair material at prices, terms, 
and conditions that are otherwise determined by the 
United States Government to be fair and reasonable 
in accordance with this title and subject to the dis-
pute resolution process outlined in chapter 71 of title 
41, United States Code; and 
‘‘(4) if the United States Government did not 
previously fund the development of the intellectual 
property of the manufacturer or an authorized reseller 
or distributor, the Government would pay a fair and 
reasonable licensing fee to obtain access.’’. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General of the 
United States shall submit to the congressional defense com-
mittees a report on the implementation of this section. 
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(c) LIMITATIONS.—Nothing in this section shall be 
construed as altering the requirements in section 2464 and 
2466 of title 10, United States Code. 
SEC. 864. PROHIBITION ON ACQUISITION OF ADVANCED 
BATTERIES 
FROM 
CERTAIN 
FOREIGN 
SOURCES. 
(a) IN GENERAL.—Subchapter II of chapter 385 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 4865. Prohibition on acquisition of advanced bat-
teries composed of materials from certain 
foreign sources 
‘‘(a) IN GENERAL.—Beginning on January 1, 2027, 
and except as provided by subsection (b), the Secretary of 
Defense may acquire an advanced battery for use at instal-
lations of the Department of Defense or in systems of the 
Department, or obtain any equipment, system, or service 
that uses covered battery equipment or services as a sub-
stantial or essential component of any system or as critical 
technology as part of any system, only if— 
‘‘(1) more than 95 percent of the electrode active 
material in each battery cell comprising such ad-
vanced battery is composed of materials from sources 
other than sources that are, or are in geographic 
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areas that are, owned by, controlled by, or subject to 
the jurisdiction of foreign entities of concern; 
‘‘(2) such advanced battery is not a battery de-
scribed in section 154(a) of the National Defense Au-
thorization Act for Fiscal Year 2024 (Public Law 
118–31; 10 U.S.C. 4651 note prec.); and 
‘‘(3) each such battery cell is manufactured with-
out technology licensed from a foreign entity of con-
cern or any subsidiary, successor, or affiliate of a for-
eign entity of concern under a licensing agreement 
that— 
‘‘(A) limits the duration of the use of such 
technology; or 
‘‘(B) requires— 
‘‘(i) any ownership of the manufac-
turer of such battery cell by a foreign entity 
of concern or any subsidiary, successor, or 
affiliate of a foreign entity of concern; or 
‘‘(ii) any partnership or technology 
transfer between such manufacturer and a 
foreign entity of concern or any subsidiary, 
successor, or affiliate of a foreign entity of 
concern. 
‘‘(b) EXCEPTIONS.— 
‘‘(1) WAIVER.— 
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‘‘(A) IN
GENERAL.—The Secretary of a 
military department may waive subsection (a) 
with respect to an acquisition of an advanced 
battery if the Secretary— 
‘‘(i) determines in writing that such 
acquisition is necessary to the national se-
curity interest of the United States; and 
‘‘(ii) implements a strategy to elimi-
nate such necessity. 
‘‘(B) DELEGATION.—The Secretary of a 
military department may delegate the written 
determination required under subparagraph 
(A)(i) only as follows: 
‘‘(i) To the head of a contracting activ-
ity for the relevant component for a waiver 
for a single acquisition program. 
‘‘(ii) To the senior acquisition execu-
tive of a military department for a waiver 
for multiple programs within such military 
department. 
‘‘(iii) To the Undersecretary of Defense 
for Acquisition and Sustainment for a 
waiver for more than one military depart-
ment. 
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‘‘(C) CONTENTS.—The written determina-
tion required under subparagraph (A)(i) with re-
spect to a waiver for the acquisition of an ad-
vanced battery shall include— 
‘‘(i) the reason such waiver is required; 
‘‘(ii) a list of each weapon system or 
end item for which such advanced battery is 
being acquired under such waiver; 
‘‘(iii) the duration of such wavier; and 
‘‘(iv) a timeline for implementing the 
strategy described in subparagraph (A)(ii). 
‘‘(2) PERSONAL
ELECTRONICS.—Subsection (a) 
does not apply with respect to the acquisition of an 
advanced battery for use in personal electronics, in-
cluding cell phones and laptops, intended for office or 
administrative purposes. 
‘‘(3) TESTING AND EVALUATION.—Subsection (a) 
does not apply with respect to the acquisition of an 
advanced battery for which testing and evaluation 
under a program of record of the Department of De-
fense begins prior to January 1, 2027. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The terms ‘advanced battery’ and ‘foreign 
entity of concern’ have the meanings given such 
terms, respectively, under section 40207(a) of the In-
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538 
frastructure Investment and Jobs Act (42 U.S.C. 
18741(a)). 
‘‘(2) The term ‘battery cell’ means the smallest 
individual component of a battery capable of con-
verting chemical energy into electrical energy. 
‘‘(3) The term ‘electrode active materials’ means 
cathode materials, anode materials, anode foils, and 
other electrochemically active materials including sol-
vents, additives, and electrolyte salts that contribute 
to the electrochemical processes necessary for energy 
storage in a battery.’’. 
(b) APPLICABILITY.—Section 4865 of title 10, United 
States Code, as added by subsection (a), shall apply only 
with respect to contracts or other agreements entered into 
after the date of the enactment of this Act. 
SEC. 865. PROHIBITION ON ACQUISITION OF MOLYBDENUM 
FROM NON-ALLIED FOREIGN NATIONS. 
(a) IN GENERAL.—Section 4872(h)(1) of title 10, 
United States Code, as redesignated and amended by this 
Act, is further amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (E), by striking the period 
at the end and inserting ‘‘; and’’; and 
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539 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) molybdenum.’’. 
(b) EXISTING CONTRACT.—The amendments made by 
subsection (a) shall apply only with respect to contracts and 
other agreements entered into after the date of the enactment 
of this Act. 
SEC. 866. REQUIREMENT TO BUY DISPOSABLE FOOD SERV-
ICE PRODUCTS FROM AMERICAN SOURCES; 
EXCEPTIONS. 
(a) IN GENERAL.—Subchapter II of chapter 385 of 
title 10, United States Code, as amended by section 864 
of this Act, is further amended by adding at the end the 
following new section: 
‘‘§ 4866. Requirement to buy disposable food service 
products from American sources; excep-
tions 
‘‘(a) REQUIREMENT.—The Secretary of Defense may 
only procure disposable food service products that— 
‘‘(1) are American-made; 
‘‘(2) contain no added perfluoroalkyl substances 
or polyfluoroalkyl substances; and 
‘‘(3) improve operational readiness (as defined 
in section 4322 of this title). 
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‘‘(b) WAIVER.—(1) The Secretary of Defense may 
waive the requirement under subsection (a) if the Sec-
retary— 
‘‘(A) determines that the waiver is in the 
best interest of the national security of the 
United States; and 
‘‘(B) submits to the congressional defense 
committees a written justification for issuing 
such waiver. 
‘‘(2) The Secretary may not delegate the authority to 
issue a waiver under this subsection to an official below 
the level of the Under Secretary of Defense for Acquisition 
and Sustainment. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘American-made’ means, with re-
spect to a disposable food service product, that such 
product is manufactured or produced in the United 
States— 
‘‘(A) by an entity that is incorporated and 
headquartered in the United States; and 
‘‘(B) substantially all from articles, mate-
rials, or supplies produced or manufactured in 
the United States. 
‘‘(2) The term ‘disposable food service products’ 
means— 
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541 
‘‘(A) single-use products for serving or 
transporting ready-to-consume food or beverages; 
and 
‘‘(B) excludes— 
‘‘(i) plastic food wrappers or other 
plastic packaging for food; and 
‘‘(ii) operational rations, including 
meals ready-to-eat or unitized group ra-
tions. 
‘‘(3) The terms ‘perfluoroalkyl substance’ and 
‘polyfluoroalkyl substance’ have the meanings given, 
respectively, in section 2714 of this title.’’. 
(b) MODIFICATION OF REGULATIONS.—Not later than 
90 days after the date of the enactment of this Act, the Sec-
retary of Defense shall revise the Department of Defense 
Supplement to the Federal Acquisition Regulation to imple-
ment the requirements of section 4866 of title 10, United 
States Code, as added by this section. 
SEC. 867. PROHIBITION ON DEPARTMENT OF DEFENSE 
CONTRACTS WITH CERTAIN FOREIGN-OWNED 
ONLINE TUTORING SERVICES. 
Section 854 of the Servicemember Quality of Life Im-
provement and National Defense Authorization Act for Fis-
cal Year 2025 (Public Law 118–159; 10 U.S.C. 4651 note 
prec.) is amended— 
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(1) by striking ‘‘The Secretary’’ and inserting 
‘‘(a) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘the People’s Republic of China’’ 
and inserting ‘‘a country of concern’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(b) COUNTRY OF CONCERN DEFINED.—In this sec-
tion, the term ‘country of concern’ means any of the fol-
lowing: 
‘‘(1) China. 
‘‘(2) Russia. 
‘‘(3) Iran. 
‘‘(4) North Korea.’’. 
SEC. 868. MODIFICATIONS TO CERTAIN PROCUREMENTS 
FROM CERTAIN CHINESE ENTITIES. 
(a) MODIFICATION OF PROHIBITION ON DEPARTMENT 
OF DEFENSE PROCUREMENT RELATED TO ENTITIES IDEN-
TIFIED AS CHINESE MILITARY COMPANIES OPERATING IN 
THE UNITED STATES.— 
(1) PROHIBITION ON USE OF LOAN OR GRANT 
FUNDS.— 
(A) IN GENERAL.—Subsection (a)(1) of sec-
tion 805 of the National Defense Authorization 
Act for Fiscal Year 2024 (Public Law 118–31; 
10 U.S.C. 4651 note prec.) is amended— 
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543 
(i) in subparagraph (A), by striking ‘‘; 
or’’ and inserting a semicolon; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; or’’; 
and 
(iii) by adding at the end the following 
new subparagraph: 
‘‘(C) obligate or expend loan or grant funds 
to procure or obtain goods and services produced 
or developed by an entity described in paragraph 
(2).’’. 
(B) APPLICABILITY.—The requirements of 
subparagraph (C) of section 805(a)(1) of the Na-
tional Defense Authorization Act for Fiscal Year 
2024 (Public Law 118–31; 10 U.S.C. 4651 note 
prec.), as added by this paragraph, shall apply 
with respect to loan or grant funds obligated or 
expended on or after the date of the enactment of 
this Act. 
(2) EXPANSION
OF
ENTITIES
COVERED.—Sub-
section (a)(2) of such section is amended— 
(A) in subparagraph (A), by striking ‘‘; or’’ 
and inserting a semicolon; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; or’’; and 
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(C) by adding at the end the following new 
subparagraph: 
‘‘(C) any entity for which the Secretary has 
submitted a certification to the congressional de-
fense committees for inclusion in this paragraph 
for national security reasons.’’. 
(3) WAIVER REPORTING.—Subsection (c) of such 
section is amended by adding at the end the following 
new paragraph: 
‘‘(4) REPORTING.—The Secretary of Defense 
shall submit to the congressional defense committees 
an annual report on waivers granted under this sub-
section, including the justifications for such waivers.’’. 
(4) RULEMAKING.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall amend the Department of Defense Sup-
plement to the Federal Acquisition Regulation to im-
plement the prohibitions in section 805 of the Na-
tional Defense Authorization Act for Fiscal Year 2024 
(Public Law 118–31; 10 U.S.C. 4651 note prec.), as 
amended by this subsection. 
(b) DESIGNATION OF CERTAIN BIOTECHNOLOGY ENTI-
TIES AS CHINESE MILITARY COMPANIES.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of enactment of this Act, the Secretary of De-
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545 
fense shall update the list maintained by the Depart-
ment of Defense in accordance with section 1260H(b) 
of the National Defense Authorization Act for Fiscal 
Year 2021 (Public Law 116–283; 10 U.S.C. 113 note) 
to include biotechnology entities (including any sub-
sidiary, parent, affiliate, or successor of such an enti-
ty) engaged in DNA and RNA assembly, synthesis, 
and manufacturing. 
(2) DEFINITOINS.—In this subsection: 
(A) The term ‘‘DNA and RNA assembly, 
synthesis, and manufacturing’’ means the chem-
ical or biological production of RNA and DNA 
molecules through enzymatic methods or chem-
ical synthesis and involving the construction of 
longer sequences or entire genomes from smaller 
DNA or RNA fragments, commonly used in med-
ical research, synthetic biology, gene therapy, 
and vaccine development. 
(B) The term ‘‘biotechnology entity’’ has the 
meaning given in section 1312(b) of the National 
Defense Authorization Act for Fiscal Year 2024 
(Public Law 118–31). 
(c) MODIFICATION OF PROHIBITION ON AVAILABILITY 
OF FUNDS FOR PROCUREMENT OF CERTAIN BATTERIES.— 
Subsection (b) of section 154 of the National Defense Au-
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thorization Act for Fiscal Year 2024 (Public Law 118–31; 
10 U.S.C. note preceding section 44651) is amended— 
(1) by redesignating paragraphs (2) through (7) 
as paragraphs (3) through (8), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) Amperex Technology Limited (also known 
as ‘ATL’).’’; and 
(3) by amending paragraph (8) as redesignated 
by striking ‘‘paragraphs (1) through (6)’’ and insert-
ing ‘‘paragraphs (1) through (7)’’. 
SEC. 869. PROHIBITION ON THE PURCHASE OF PHOTO-
VOLTAIC MODULES FROM FOREIGN ENTITIES 
OF CONCERN. 
(a) IN GENERAL.—Except as provided by subsection 
(b), none of the funds made available by this Act may be 
used to acquire a photovoltaic module or photovoltaic cells 
manufactured by a foreign entity of concern (as defined in 
section 9901 of the William M. (Mac) Thornberry National 
Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 
4651). 
(b) WAIVER.—The Secretary of Defense may waive 
subsection (a) with respect to an acquisition of a photo-
voltaic module or photovoltaic cell manufactured by for for-
eign entity of concern if the Secretary— 
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547 
(1) determines that a sufficient quantity and 
satisfactory qualify of such photovoltaic module or 
photovoltaic cell, as applicable, manufactured by enti-
ties other than foreign entities of concern is not avail-
able as and when needed at United States market 
prices; 
(2) determines that the use of such photovolatic 
module or photovoltaic cell, as applicable, does not 
pose any risk to national security; and 
(3) submits to the appropriate congressional 
committees a certification of the determinations under 
paragraphs (1) and (2) not later than the date that 
is 30 days prior to the date on which the Secretary 
of Defense enters into a contract or other agreement 
for such acquisition. 
(c) APPLICABILITY.—Subsection (a) shall apply only 
with respect to contracts or other agreements for the acquisi-
tion of photovoltaic modules or photovoltaic cells directly 
by the Department of Defense that do not involve any third 
party financing arrangements, including energy savings 
contracts and contracts or other agreements involving 
privatized military housing. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘photovoltaic cell’’ means the 
smallest semiconductor element of a photovoltaic mod-
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548 
ule that performs the immediate conversion of light 
into electricity. 
(2) The term ‘‘photovoltaic module’’ means an 
end item (as such term is defined in section 4863 of 
title 10, United States Code) comprised of connected 
and laminated photovoltaic cells in an environ-
mentally protected assembly that is suitable to gen-
erate electricity when exposed to sunlight. 
SEC. 870. PROHIBITION ON COMPUTERS OR PRINTERS AC-
QUISITIONS INVOLVING ENTITIES OWNED OR 
CONTROLLED BY CHINA. 
(a) IN GENERAL.—The Secretary of Defense may not 
acquire any computer or printer if the manufacturer, bid-
der, or offeror is a covered Chinese entity. 
(b) APPLICABILITY.—This section shall apply with re-
spect to contracts or other agreements entered into, renewed, 
or extended after the date of the enactment of this Act. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘computer’’— 
(A) means an electronic, magnetic, optical, 
electrochemical, or other high speed data proc-
essing device performing logical, arithmetic, or 
storage functions, and includes any data storage 
facility or communications facility directly re-
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549 
lated to or operating in conjunction with such 
device; and 
(B) does not include an automated type-
writer or typesetter, a portable handheld calcu-
lator, or other similar device. 
(2) The term ‘‘covered Chinese entity’’ means an 
entity that the Secretary of Defense, in consultation 
with the Director of the National Intelligence or the 
Director of the Federal Bureau of Investigation, deter-
mines to be an entity owned, controlled, directed, or 
subcontracted by, affiliated with, or otherwise con-
nected to, the Government of the People’s Republic of 
China. 
(3) The term ‘‘manufacturer’’ means— 
(A) the entity that transforms raw mate-
rials, miscellaneous parts, or components into 
the end item; 
(B) an entity that subcontracts with the en-
tity described in subparagraph (A) for purposes 
of assisting the entity described in such subpara-
graph in transforming raw materials, miscella-
neous parts, or components into the end item; 
(C) an entity that otherwise directs the enti-
ty described in subparagraph (A) to transform 
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raw materials, miscellaneous parts, or compo-
nents into the end item; or 
(D) any parent company, subsidiary, or af-
filiate of the entity described in subparagraph 
(A). 
(4) The term ‘‘printer’’— 
(A) means desktop printers, multifunction 
printer copiers, and printer and fax combina-
tions taken out of service that may or may not 
be designed to reside on a work surface; 
(B) includes devices that use various print 
technologies, including laser and LED (electro-
graphic), ink jet, dot matrix, thermal, and dig-
ital sublimation; 
(C) includes multi-function or ‘‘all-in-one’’ 
devices that perform different tasks, including 
copying, scanning, faxing, and printing; 
(D) includes floor-standing printers, print-
ers with an optional floor stand, or household 
printers; and 
(E) does not include point-of-sale receipt 
printers, calculators with printing capabilities, 
label makers, or non-standalone printers that are 
embedded into products that are not described in 
subparagraphs (A) through (D). 
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Subtitle F—Industrial Base Matters 
SEC. 871. MODIFICATION TO DEMONSTRATION AND PROTO-
TYPING 
PROGRAM 
TO 
ADVANCE 
INTER-
NATIONAL PRODUCT SUPPORT CAPABILITIES 
IN A CONTESTED LOGISTICS ENVIRONMENT. 
Section 842 of the National Defense Authorization Act 
for Fiscal Year 2024 (Public Law 118–31; 10 U.S.C. 2341 
note) is amended— 
(1) in subsection (b)(2)— 
(A) in subparagraph (A), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) commercial advanced or additive man-
ufacturing facilities for rapid, distributed pro-
duction of parts closer to the point of use; and’’; 
and 
(2) in subsection (g), by striking ‘‘on the date’’ 
and all that follows and inserting ‘‘December 31, 
2030.’’. 
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552 
SEC. 872. MODIFICATION TO PROCUREMENT REQUIRE-
MENTS RELATING TO RARE EARTH ELE-
MENTS AND STRATEGIC AND CRITICAL MATE-
RIALS. 
(a) MODIFICATION REGARDING ADVANCED BATTERIES 
IN DISCLOSURES CONCERNING RARE EARTH ELEMENTS 
AND STRATEGIC AND CRITICAL MATERIALS BY CONTRAC-
TORS OF DEPARTMENT OF DEFENSE.—Section 857 of the 
James M. Inhofe National Defense Authorization Act for 
Fiscal Year 2023 (Public Law 117–263; 136 Stat. 2727; 
10 U.S.C. 4811 note) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(A)— 
(i) by striking ‘‘permanent magnet’’ 
and inserting ‘‘permanent magnet, or an 
advanced battery or advanced battery com-
ponent (as those terms are defined, respec-
tively, in section 40207(a) of the Infrastruc-
ture Investment and Jobs Act (42 U.S.C. 
18741(a))),’’; and 
(ii) by striking ‘‘of the magnet’’ and 
inserting ‘‘of the magnet, the advanced bat-
tery, or the advanced battery component (as 
applicable)’’; and 
(B) by amending paragraph (2) to read as 
follows: 
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‘‘(2) ELEMENTS.—A disclosure under paragraph 
(1) with respect to a system described in that para-
graph shall include— 
‘‘(A) if the system includes a permanent 
magnet, an identification of the country or coun-
tries in which— 
‘‘(i) any rare earth elements and stra-
tegic and critical materials used in the 
magnet were mined; 
‘‘(ii) such elements and materials were 
refined into oxides; 
‘‘(iii) such elements and materials were 
made into metals and alloys; and 
‘‘(iv) the magnet was sintered or bond-
ed and magnetized; and 
‘‘(B) if the system includes an advanced 
battery or an advanced battery component, an 
identification of the country or countries in 
which— 
‘‘(i) any strategic and critical mate-
rials that are covered minerals used in the 
battery or component were refined, proc-
essed, or reprocessed; 
‘‘(ii) any strategic and critical mate-
rials that are covered minerals and that 
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were manufactured into the battery or com-
ponent; and 
‘‘(iii) the battery cell, module, and 
pack of the battery or component were man-
ufactured and assembled.’’; and 
(2) by amending subsection (d) to read as fol-
lows: 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘strategic and critical materials’ 
means materials designated as strategic and critical 
under section 3(a) of the Strategic and Critical Mate-
rials Stock Piling Act (50 U.S.C. 98b(a)). 
‘‘(2) The term ‘covered minerals’ means lithium, 
nickel, cobalt, manganese, and graphite.’’. 
(b) TECHNICAL AMENDMENTS.—Subsection (a) of such 
section 857 is further amended— 
(1) in paragraph (3), by striking ‘‘provides the 
system’’ and inserting ‘‘provides the system as de-
scribed in paragraph (1)’’; and 
(2) in paragraph (4)(C), by striking ‘‘a senior 
acquisition executive’’ and inserting ‘‘a service acqui-
sition executive’’. 
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SEC. 873. APPLICABILITY OF THE PROHIBITION ON ACQUIR-
ING CERTAIN METAL PRODUCTS. 
Section 844(b) of the National Defense Authorization 
Act for Fiscal Year 2021 (Public Law 116–283) is amend-
ed— 
(1) in the subsection heading, by inserting ‘‘; AP-
PLICABILITY’’ after ‘‘DATE’’; and 
(2) by inserting ‘‘, and shall apply with respect 
to contracts entered into on or after,’’ after ‘‘take ef-
fect on’’. 
SEC. 874. RECYCLING CRITICAL MINERAL. 
Section 848(b) of the William M. (Mac) Thornberry 
National Defense Authorization Act for Fiscal Year 2021 
(Public Law 116-283; 10 U.S.C. 4811 note) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by inserting 
‘‘under the guidance described in paragraph (3)’’ 
after ‘‘recycled or reused minerals or metals’’; 
and 
(B) in subparagraph (C), by inserting 
‘‘under the guidance described in paragraph (3)’’ 
after ‘‘recycled or reused minerals or metals’’; 
and 
(2) by adding at the end the following new para-
graph: 
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‘‘(3) GUIDANCE.—The Under Secretary of De-
fense for Acquisition and Sustainment shall issue 
guidance to use the lessons learned from the program 
of the Defense Logistics Agency for recycling optical- 
grade germanium used in weapons systems and night 
vision equipment to expand and scale the use of the 
authority of the Secretary of Defense under the Stra-
tegic and Critical Materials Stock Piling Act (50 
U.S.C. 98 et seq.) to recycle, reuse, or otherwise re-
cover materials determined to be strategic and critical 
materials under section 3(a) of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 
98b(a)).’’. 
SEC. 875. ORGANIC SMALL UNMANNED AIRCRAFT SYSTEM 
MANUFACTURING CAPACITY. 
(a) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall establish in the Defense Industrial Resilience Consor-
tium established under section 1842 a working group, to 
be called the ‘‘SkyFoundry Working Group’’, to develop rec-
ommendations— 
(1) for improving the domestic manufacturing 
capacity for small unmanned aircraft systems; and 
(2) to enable rapid development, testing, and 
scalable manufacturing of small drones. 
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(b) MEMBERSHIP.—The membership of the working 
group shall include representatives from the Government, 
including representatives from the Army Materiel Com-
mand and the United States Special Operations Command, 
industry, and academia with expertise in the manufac-
turing, engineering, or testing and evaluation of small UAS 
manufacturing, including expertise in modular manufac-
turing processes for small UAS, or commercial best prac-
tices and business models for manufacturing small UAS. 
(c) RESPONSIBILITIES.—The working group estab-
lished under subsection (a) shall— 
(1) identify existing infrastructure of the De-
partment of Defense, including depots and military 
installations, that may be modified to operate as an 
innovation center and production facility for small 
UAS manufacturing that is capable of mass pro-
ducing small UAS; 
(2) assess how the infrastructure identified under 
paragraph (1) could be operated using a hybrid busi-
ness model, including— 
(A) a Government Owned, Contractor Oper-
ated model; and 
(B) a Government Owned, Government Op-
erated model; 
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(3) identify additional authorities that could be 
used to streamline and expedite the establishment of 
an organic small UAS innovation and production fa-
cility, including rapid acquisition authorities that 
could be used to accelerate contacting, production, 
testing, and delivery of small UAS to the Department 
of Defense; 
(4) identify any changes to policy and proce-
dures of the Department that are required for the De-
partment to establish the innovation center and pro-
duction facility for sUAS manufacturing at an exist-
ing depot or military installation; 
(5) identify any funding required for the 
sustainment, restoration, and modernization of facili-
ties to establish an innovation center and production 
facility for small UAS manufacturing; and 
(6) develop and submit to the Secretary of De-
fense recommendations for— 
(A) establishing an innovation center and 
production facility for small UAS manufac-
turing; 
(B) workforce training to enhance the 
knowledge and experience of the workforce of the 
Department of Defense in small UAS design, 
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manufacturing, and testing best practices and 
procedures; and 
(C) expanding the concept of a innovation 
center and production facility to expand the ac-
cess of the Department of Defense to required 
products, including energetics and autonomous 
systems. 
(d) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to Congress— 
(1) a summary of the recommendations sub-
mitted to the Secretary under subsection (c)(6); 
(2) an explanation of the actions taken by the 
Secretary to better enable the Department of Defense 
to rapidly develop, test, and manufacture small UAS; 
and 
(3) the recommendations of the Secretary to en-
able the Department to expand domestic manufac-
turing capacity for small unmanned aircraft systems 
and to enable rapid development, testing, and scalable 
manufacturing of small drones, including any rec-
ommendations for any additional relevant statutory 
authorities. 
(e) SUNSET.— 
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(1) IN GENERAL.—The requirements under this 
section shall expire on the date that is one year after 
the date of this Act. 
(2) RULE
OF
CONSTRUCTION.—Paragraph (1) 
shall not be construed as terminating the authority of 
the Secretary to continue the operating the working 
group established under subsection (a) after the expi-
ration date established under such paragraph. 
(f) PRESERVATION
OF AUTHORITY.—The establish-
ment or findings of the working group established under 
subsection (a) shall not be construed as restricting, delay-
ing, or otherwise limiting the Secretary of the Army from 
exercising any of the authorities of the Secretary referred 
to in this section, including the performance of any action 
under any authority of the Secretary that may be the sub-
ject of a review by or recommendation of such working 
group. 
(g) DEFINITIONS.—In this section: 
(1) The term ‘‘small unmanned aircraft system’’ 
mean a small unmanned aircraft and associated ele-
ments (including communication links and the com-
ponents that control the unmanned aircraft) that are 
required for the operator to operate safely and effi-
ciently in the national airspace system. 
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561 
(2) The term ‘‘small unmanned aircraft’’ means 
an unmanned aircraft weighing less than 55 pounds, 
including the weight of anything attached to or car-
ried by the aircraft. 
SEC. 876. PROTECTING AI AND CLOUD COMPETITION IN DE-
FENSE CONTRACTS. 
(a) CLOUD, DATA INFRASTRUCTURE, AND FOUNDA-
TION MODEL PROCUREMENT REQUIREMENTS.—The Sec-
retary of Defense shall, when entering into a contract for 
cloud computing, data infrastructure, and artificial intel-
ligence capabilities— 
(1) promote security, resiliency, and competition 
in the procurement of such capabilities by requiring 
the use of competitive procedures under section 3012 
of title 10, United States Code; 
(2) ensure that the Government retains exclusive 
access to and use of all Government-furnished data; 
(3) ensure that such competitive procedures— 
(A) prioritize appropriate Government roles 
in intellectual property, data rights, security, 
interoperability, and auditability; 
(B) incorporate modular open systems ap-
proaches (as defined in section 4401 of title 10, 
United States Code (as amended by section 1833 
of this Act)) and technical boundaries; 
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562 
(C) use best practices in streamlined pro-
curement as set forth in the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103–355) 
and section 808 of the National Defense Author-
ization Act for Fiscal Year 2021 (Public Law 
116– 283; 10 U.S.C. 4001 note); 
(D) encourages participation by small busi-
ness concerns (as defined under section 3 of the 
Small Business Act (15 U.S.C. 632)) and non-
traditional defense contractors (as defined in sec-
tion 3014 of title 10, United States Code); 
(E) uses all appropriate acquisition au-
thorities, including authorities under sections 
4021 and 4022 of title 10, United States Code, 
and commercial solutions opening contracts en-
tered into pursuant to section 3458 of title 10, 
United States Code. 
(b) DATA TRAINING AND USE PROTECTION.—The Sec-
retary of Defense, acting through the Director of the Chief 
Digital and Artificial Intelligence Office of the Department 
of Defense, shall revise the Department of Defense Supple-
ment to the Federal Acquisition Regulation to ensure that— 
(1) Government-furnished data provided for the 
development or operation of AI capabilities may not 
be used by a covered provider to train or improve 
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commercial products without express written author-
ization from the Secretary of Defense; 
(2) such Government-furnished data, when stored 
on covered provider systems, is protected and treated 
in accordance with covered data principles, or, to the 
maximum extent practicable, under commercial AI 
terms protective of Government interests; 
(3) a service acquisition executive (as defined in 
section 101 of title 10, United States Code) may 
waive the requirements of this subsection only if— 
(A) such waiver is determined to be nec-
essary for national security; and 
(B) the Director is notified of the specific 
waiver, the covered provider and a description 
and the value of the contract to which the waiver 
applies, the data subject to the waiver, and the 
justification for such waiver. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than January 15, 
2027, and annually thereafter for four years, the 
Chairman of the Joint Chiefs of Staff, in coordination 
with the Under Secretary of Defense for Acquisition 
and Sustainment, shall submit to the congressional 
defense committees a report on— 
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(A) competition and innovation among pro-
viders of AI technologies or cloud computing ca-
pabilities for the Department of Defense; 
(B) barriers to the award of a contract with 
the Department of Defense faced by providers of 
commercial AI technologies and emerging tech-
nology companies; and 
(C) legislative and administrative rec-
ommendations to enhance innovation, competi-
tion, and secure data practices in Department of 
Defense AI and cloud acquisitions. 
(2) PUBLICATION.—The Secretary of Defense 
shall ensure that the report is made available to the 
public by— 
(A) posting a publicly releasable version of 
the report on a website of the Department of De-
fense; and 
(B) upon request, transmitting the report 
by other means, as long as such transmission is 
at no cost to the Department. 
(d) DEFINITIONS.—In this section: 
(1) The terms ‘‘artificial intelligence’’ and ‘‘AI’’ 
have the meaning given the term ‘‘artificial intel-
ligence’’ in section 5002 of the National Artificial In-
telligence Initiative Act of 2020 (15 U.S.C. 9401). 
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(2) The term ‘‘cloud computing’’ has the mean-
ing given the term in Special Publication 800–145 of 
the National Institute of Standards and Technology, 
or any successor document. 
(3) The term ‘‘cloud provider’’ means an entity 
engaged in the provision, sale, or licensing of cloud 
computing. 
(4) The term ‘‘covered data principles’’ means— 
(A) ‘‘DoD data decrees’’ as described in the 
memorandum of the Department of Defense titled 
‘‘Creating Data Advantage’’ issued May 5, 2021; 
and 
(B) 
Creating 
Data 
Advantage 
(Open 
DAGIR) principles, as defined by the Director of 
the Chief Digital and Artificial Intelligence Of-
fice 
(5) The term ‘‘covered provider’’ means any 
cloud provider, data infrastructure provider, or artifi-
cial provider that has entered into one or more con-
tracts with an aggregate total value of greater than 
or equal to $50,000,000 during the period of five fis-
cal years preceding the fiscal year in which a con-
tract described in subsection (a) is entered into. 
(6) The term ‘‘data infrastructure’’ means the 
underlying computer, network, and software systems 
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that enable the collection, storage, processing, and 
analysis of data, including the ability to record, 
transmit, transform, categorize, integrate, and other-
wise process data generated by digital data systems. 
SEC. 877. BIOINDUSTRIAL COMMERCIALIZATION PROGRAM. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
may establish a program to support the expansion of the 
domestic capacity for bioindustrial manufacturing of crit-
ical biomanufactured products at a commercial level 
through awards to eligible entities for establishing, upgrad-
ing, and retooling of eligible bioindustrial manufacturing 
facilities. 
(b) AWARDS.— 
(1) IN GENERAL.—An entity seeking an award 
under the program shall submit to the Secretary an 
application at such time, in such manner, and con-
taining such information as the Secretary determines 
appropriate. 
(2) COMPETITIVE AWARDS.—The Secretary shall 
make each award under the program to an eligible 
entity in a competitive manner. 
(3) AWARD CRITERIA.—In selecting eligible enti-
ties to receive awards under the program, the Sec-
retary shall consider the following criteria: 
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(A) The potential of the technology of such 
eligible entity to improve domestic resilience and 
protect critical supply chains for critical bio-
manufactured products. 
(B) How the technology of such eligible enti-
ty could help meet the demand for the capabili-
ties 
required 
by 
the 
next 
generation 
of 
warfighters. 
(C) The ability of the eligible bioindustrial 
manufacturing facility with respect to which 
such eligible entity is seeking such award to be 
repurposed and the range of products that such 
eligible bioindustrial manufacturing facilities is 
capable of producing. 
(D) Whether the eligible bioindustrial man-
ufacturing facility with respect to which such el-
igible entity is seeking such award supports the 
goal of wide geographic distribution of bioindus-
trial manufacturing facility across the United 
States. 
(E) Whether the eligible bioindustrial man-
ufacturing facility with respect to which such el-
igible entity is seeking such award is located in 
geographic proximity to sources of input mate-
rials for the production of critical biomanufac-
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tured 
products 
or 
areas 
with 
established 
biomanfuacturing capabilities; and 
(F) Such additional considerations that the 
Secretary deems appropriate. 
(4) USE OF AWARD FUNDS.—A recipient of an 
award under the program may use funds received 
under such award for the establishment, upgrading, 
or retooling of one or more eligible bioindustrial man-
ufacturing facilities to produce critical biomanufac-
tured products, including the development of business 
or technical plans related to such establishment, up-
grading, or retooling. 
(c) OVERSIGHT.—If the Secretary establishes the pro-
gram, the Secretary shall establish reporting requirements 
for recipients of awards under the program which shall in-
clude requirements for period reports on the following: 
(1) The progress of the recipient in establishing, 
upgrading, or retooling the eligible bioindustrial 
manufacturing facility with respect to which such re-
cipient received such award. 
(2) The estimated timeline and funding require-
ments for the recipient to begin biomanufacturing at 
the eligible bioindustrial manufacturing facility de-
scribed in paragraph (1). 
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(3) The products, including the critical biomanu-
factured products, that are or will be produced at the 
eligible bioindustrial manufacturing facility described 
in paragraph (1). 
(4) The progress of the recipient in entering into 
an agreement with the Department of Defense or an 
element thereof to provide critical biomanufactured 
products, that are or will be produced at the eligible 
bioindustrial manufacturing facility described in 
paragraph (1) once such eligible bioindustrial manu-
facturing facility begins biomanufacturing. 
(d) REPORTS TO CONGRESS.— 
(1) INITIAL REPORT.—Not later than 90 days 
after the date of the enactment of this Act, the Sec-
retary shall submit to the Committees on Armed Serv-
ices of the House of Representatives and Senate a re-
port on the plan of the Secretary for allocating 
amounts appropriated to the Department of Defense 
to fund the program. 
(2) ANNUAL REPORTS.—Not later than one year 
after the date of the enactment of this Act, and annu-
ally thereafter, the Secretary shall submit to the Com-
mittees on Armed Services of the House of Represent-
atives and Senate a report on the activities under the 
program, including— 
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(A) a list of the awards made under the 
program as of the date on which the report is 
submitted, including, for each such award— 
(i) the name of the entity that received 
the award; 
(ii) the location of the eligible bio-
industrial manufacturing facility with re-
spect to which such entity received the 
award; 
(iii) 
the 
amount 
of 
the 
award, 
disaggregated by the initial amount of the 
award and any additional amounts pro-
vided under the award; 
(iv) an explanation of the criteria sup-
porting making the award to such entity, 
including a description of any notable tech-
nologies of such entity relevant to the 
award; 
(v) if applicable, an explanation of the 
rational for providing additional amounts 
under the award; and 
(vi) to the extent practicable, and ex-
planation of the effects of the award; 
(B) an identification of amounts available 
to the Department of Defense for making awards 
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under the program as of the date on which the 
report is submitted and an explanation of any 
plans for the use of such amounts; 
(C) an explanation of the communication 
between the Secretary and eligible entities seek-
ing an award under the program regarding re-
quirements and timelines for such awards; and 
(D) an explanation of how the establish-
ment, upgrading, or retooling of the eligible bio-
industrial manufacturing facility for which 
awards were made under the program aligns 
with priorities and needs of the Department of 
Defense and national security. 
(e) SUNSET.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), this section shall terminate on the date 
that is 10 years after the date of the enactment of this 
Act. 
(2) EXTENSION.—The Secretary may change the 
date on which this section terminates to a date that 
is later than the date on which this section would ter-
minate under paragraph (1) if the President deter-
mines that the continuation of the program is nec-
essary to meet national economic and national secu-
rity needs. 
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572 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘biomanufacturing’’ means the uti-
lization of biological systems to develop new and ad-
vance existing products, tools, and processes at com-
mercial scale. 
(2) The term ‘‘critical biomanufactured product’’ 
means a chemical, material, and other product that 
is manufactured using biomanufacturing and is rel-
evant to the Department of Defense. 
(3) The term ‘‘eligible bioindustrial manufac-
turing facility’’ means a bioindustrial manufacturing 
facility that— 
(A) is or, if not yet established, will be lo-
cated in the United States; and 
(B) is or, pursuant to an award under the 
program, will produce critical biomanufactured 
products. 
(4) The term ‘‘eligible entity’’ means an entity 
that— 
(A) is a private entity; 
(B) applied for an award under the pro-
gram in accordance with subsection (b)(1); and 
(C) meets such other criteria for eligibility 
for an award under the program as determined 
by the Secretary. 
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573 
(5) The term ‘‘program’’ means the program es-
tablished under subsection (a). 
(6) The term ‘‘Secretary’’ means the Secretary of 
Defense. 
SEC. 878. COMMON REPOSITORY FOR SUPPLIER INFORMA-
TION. 
(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of this Act, the Assistant Secretary 
of Defense for Industrial Base Policy shall establish a repos-
itory of information commonly required for the initial vet-
ting by the Department of Defense of contractors applying 
to be qualified to supply products or services to the Depart-
ment. 
(b) COORDINATED EFFORTS.—The Assistant Secretary 
of Defense for Industrial Base Policy shall develop the re-
pository required under subsection (a) in conjunction with 
or as part of other efforts of an Office of Small Business 
Programs of the Department of Defense to provide market 
research, supply chain resiliency, cybersecurity, and secure 
cloud tools to entities furnishing procurement technical as-
sistance under chapter 388 of title 10, United States Code, 
and small manufacturers. 
(c) COOPERATIVE AGREEMENT.—The Assistant Sec-
retary of Defense for Industrial Base Policy may enter into 
a public-private partnership or cooperative agreement with 
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574 
one or more contractors of the Department of Defense in 
establishing the repository required by (a) if the Assistant 
Secretary determines that such repository— 
(1) would reduce duplicative efforts or reduce the 
time spent by potential suppliers in providing simi-
lar information to multiple prime contractors; or 
(2) would streamline or reduce the cost of a 
prime contractor qualifying a supplier for products 
or services to be provided to the Department. 
SEC. 879. CIVIL RESERVE MANUFACTURING NETWORK. 
(a) WORKING GROUP.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish in the Defense Industrial Resil-
ience Consortium established under section 1842 a 
working group to support the establishment of the 
Civil Reserve Manufacturing Network to preserve the 
military advantage and bolster the defense of the 
United States and broaden the domestic industrial 
base. 
(2) RESPONSIBILITIES.—The working group es-
tablished under paragraph (1) shall— 
(A) identify issues with respect to the 
CRMN; 
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(B) develop recommendations for establish-
ment and operation of the CRMN, including rec-
ommendations for— 
(i) resolving the issues identified under 
subparagraph (A); and 
(ii) incentives to encourage participa-
tion in the CRMN; 
(C) submit to the Secretary the issues iden-
tified under subparagraph (A) and the rec-
ommendations developed under subparagraph 
(B). 
(3) COLLABORATION.—In carrying out the re-
sponsibilities of the working group established under 
paragraph (1), the working group shall collaborate 
with relevant entities, including government, indus-
try, and academia. 
(b) INITIAL PLAN.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of enactment of this Act, the Secretary shall 
submit to the congressional defense committees a plan 
for the establishment of the CRMN program that in-
cludes— 
(A) a plan to develop a CRMN comprised 
of commercial advanced or adaptive manufac-
turing capabilities or facilities that can rapidly 
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transition from the production of commercial 
products for commercial customers to the produc-
tion of products required by the Department of 
Defense; and 
(B) an identification of any statutory or 
regulatory constraints on the establishment or ef-
fectiveness of the CRMN and recommendations to 
streamline the establishment of the CRMN, in-
cluding any changes to existing authorities re-
lated to the use of public-private partnerships. 
(2) CONSIDERATIONS.—In developing the plan 
required under paragraph (1), the Secretary shall, to 
the extent practicable, incorporate the recommenda-
tions of the working group established under sub-
section (a) submitted to the Secretary under para-
graph (2) of such subsection. 
(c) INTERIM REPORT.—Not later than 270 days after 
the date of enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port on progress of the CRMN, including— 
(1) an assessment of the benefits a factory-as-a- 
service model with respect to accelerating the 
timelines for the establishment of the CRMN, reducing 
the costs to the Government of operating the CRMN, 
minimizing obsolescence of commercial advanced or 
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adaptive manufacturing capabilities or facilities that 
are part of the CRMN, and enabling the rapid scaling 
of the CRMN; 
(2) an analysis of improvements in efficiency 
and cost reduction the Department of Defense may 
achieve without sacrificing performance, reliability, 
qualify, or safety from the use of advanced or adapt-
ive manufacturing and application value engineering 
techniques under part 48 of the Federal Acquisition 
Regulation; 
(3) an assessment of potential to improve supply 
chain resiliency through the acquisition by the Gov-
ernment of advanced or adaptive manufacturing 
hardware structures for use by system integrators; 
(4) an identification of any statutory or regu-
latory constraints and recommendations to streamline 
the establishment of the CRMN, including any 
amendments to exiting authorities for public-private 
partnerships; 
(5) an explanation of the progress on developing 
an incentive structure that would enable the success 
of the CRMN by sufficiently addressing the risk to 
commercial customers of CRMN participants of loss 
of production if such participants are required to 
shift production to meet the needs of the Department; 
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(6) a list of existing programs of the Department 
that are delayed or have cost overruns resulting from 
a lack of components due to shortages of required 
casting and forging capabilities of manufacturers, in-
cluding— 
(A) the name of the program or contract; 
(B) the components that are delayed or con-
tributing to such cost overruns; and 
(C) whether such components could be pro-
duced through alternative means, including ad-
vanced or adaptive manufacturing; and 
(7) a strategy to transition existing production 
approaches for the programs identified under para-
graph (6) to advanced or adaptive manufacturing. 
(d) CIVIL RESERVE MANUFACTURING NETWORK PRO-
GRAM.— 
(1) IN GENERAL.—After the submission of the 
plan required under subsection (b)(1), the Secretary 
shall establish the CRMN program under which— 
(A) the Secretary shall establish the CRMN; 
and 
(B) advanced or adaptive manufacturers 
participate in the CRMN. 
(2) PARTICIPANT REQUIREMENTS.—Each partic-
ipant shall enter into an agreement with the Sec-
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retary under which such participant shall, upon such 
terms and conditions as agreed to by the Secretary 
and the participant, rapidly transition the produc-
tion facilities of such participant to begin production 
of products for the Department of Defense. 
(3) SOLICITATION OF PROGRAM PARTICIPANTS.— 
Not later than one year after the date of enactment 
of this Act, the Secretary shall seek to enter into 
agreements with one or more advanced or adaptive 
manufacturers to participate in the CRMN under the 
program. 
(4) PARTICIPATION BENEFITS.— 
(A) EXPEDITED QUALIFICATION.—The Sec-
retary shall establish expedited procedures for 
qualifying participants to be eligible to supply 
products or services to the Department of De-
fense. 
(B) FUNDING.—Subject to the availability 
of appropriations, the Secretary shall award 
funding to participants for— 
(i) expedited qualification and testing 
of products manufactured by the partici-
pant for use by the Department of Defense; 
and 
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(ii) non-recurring engineering costs as-
sociated with the conversion of specifica-
tions of a traditionally manufactured prod-
uct into an appropriate format for ad-
vanced or adaptive manufacturing. 
(e) BRIEFINGS.—Not later than March 1, 2027, and 
annually thereafter for five years, the Secretary of Defense 
shall provide to the congressional defense committees a 
briefing on the progress of the establishment of the CRMN 
under the program. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘advanced or adaptive manufac-
turer’’ means a manufacturer that uses advanced or 
adaptive manufacturing. 
(2) The term ‘‘advanced or adaptive manufac-
turing’’ means manufacturing through the use of 
interconnected, advanced technologies throughout the 
design and manufacturing process that enables mod-
ular, adaptable, and efficient manufacturing, includ-
ing software-controlled subtractive manufacturing, 
additive manufacturing, and powder bed fusion man-
ufacturing. 
(3) The term ‘‘advanced or adaptive manufac-
turing hardware structure’’ means hardware used in 
advanced or adaptive manufacturing for the posi-
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tioning, mounting, or bracing of a product in the 
manufacturing process. 
(4) The term ‘‘CRMN’’ means a network of man-
ufacturers that have entered into an agreement with 
the Secretary under which the manufacturer agrees to 
rapidly transition the manufacturing facilities of 
such manufacturers that produce commercial products 
for purchasers other than the Department of Defense 
to the production of products for the Department of 
Defense. 
(5) The term ‘‘factory-as-a-service’’ means a 
business model and technological framework that pro-
vides access to scalable and flexible manufacturing re-
sources as service, enables rapid reconfiguration of 
production lines, and real-time collaboration across 
geographically dispersed facilities. 
(6) The term ‘‘participant’’ means an advanced 
or adaptive manufacturer that is participating in the 
CRMN under the program. 
(7) The term ‘‘program’’ means the program es-
tablished under subsection (d)(1). 
(8) The term ‘‘Secretary’’ means the Secretary of 
Defense. 
(g) CONFIRMING AMENDMENT.—Section 3243 of title 
10, United States Code, is amended— 
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(1) by redesignating subsections (e), (f), and (g) 
as subsections (f), (g), and (h), respectively; and 
(2) by inserting after subsection (d) the following 
new subsection: 
‘‘(e) ADVANCED
OR
ADAPTIVE
MANUFACTURING 
QUALIFICATIONS.—The head of the agency shall establish 
a process to streamline qualification of sources who use ad-
vanced manufacturing techniques, including those using a 
digital adaptive production system. Once a source is quali-
fied, the head of the agency shall not require additional 
qualification for sources or products produced unless mate-
rial changes have been made to the manufacturing proc-
ess.’’. 
Subtitle G—Small Business Matters 
SEC. 881. DEPARTMENT OF DEFENSE CONTRACTING GOALS 
FOR SMALL BUSINESS CONCERNS OWNED 
AND CONTROLLED BY VETERANS. 
Chapter 387 of title 10, United States Code, is amend-
ed by adding at the end the following new section: 
‘‘§ 4903. Small business concerns owned and con-
trolled by veterans: contracting goals 
‘‘(a) CONTRACTING GOALS.—In order to increase con-
tracting opportunities for small business concerns owned 
and controlled by veterans, the Secretary shall establish a 
goal for each fiscal year for participation in Department 
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contracts (including subcontracts) by small business con-
cerns owned and controlled by veterans that is not less than 
the Governmentwide goal for that fiscal year for participa-
tion by small business concerns owned and controlled by 
service-disabled veterans under section 15(g)(1) of the Small 
Business Act (15 U.S.C. 644(g)(1)). 
‘‘(b) SOLE
SOURCE
CONTRACTS
FOR
CONTRACTS 
ABOVE SIMPLIFIED ACQUISITION THRESHOLD.—For pur-
poses of meeting the goals under subsection (a), a con-
tracting officer may award a contract to a small business 
concern owned and controlled by veterans using procedures 
other than competitive procedures if— 
‘‘(1) such concern is determined to be a respon-
sible source with respect to performance of such con-
tract; 
‘‘(2) the anticipated award price of the contract 
(including options) will not exceed the amounts estab-
lished in section 36(c)(2) of the Small Business Act 
(15 U.S.C. 657f(c)(2)); and 
‘‘(3) in the estimation of the contracting officer, 
the contract award can be made at a fair and reason-
able price that offers best value to the United States. 
‘‘(c) USE OF RESTRICTED COMPETITION.—Except as 
provided in subsection (b), for purposes of meeting the goals 
under subsection (a) and in accordance with this section, 
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a contracting officer may award contracts on the basis of 
competition restricted to small business concerns owned and 
controlled by veterans if the contracting officer has a rea-
sonable expectation that two or more small business con-
cerns owned and controlled by veterans will submit offers 
and that the award can be made at a fair and reasonable 
price that offers best value to the United States. 
‘‘(d) ELIGIBILITY OF SMALL BUSINESS CONCERNS.— 
A small business concern may be awarded a contract under 
this section only if the small business concern and the vet-
eran owner of the small business concern are listed in the 
database described in section 36(f)(1) of the Small Business 
Act (15 U.S.C. 657f(f)(1)). 
‘‘(e) SMALL BUSINESS ACT DEFINITIONS.—In this sec-
tion, the terms ‘small business concern’, ‘small business con-
cern owned and controlled by veterans’, and ‘small business 
concern owned and controlled by service-disabled veterans’ 
have the meanings given, respectively, under section 3 of 
the Small Business Act (15 U.S.C. 632).’’. 
SEC. 882. PERMANENT EXTENSION OF PHASE FLEXIBILITY 
AND INCLUSION OF SMALL BUSINESS TECH-
NOLOGY TRANSFER PROGRAM. 
Section 9(cc) of the Small Business Act (15 U.S.C. 
638(cc)) is amended— 
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(1) by striking ‘‘During fiscal years 2012 
through 2025, the’’ and inserting ‘‘The’’; and 
(2) by inserting ‘‘or STTR program’’ after 
‘‘SBIR program’’ each place it appears. 
SEC. 883. AUTHORITY TO MAKE ADDITIONAL SEQUENTIAL 
PHASE II AWARDS UNDER THE SMALL BUSI-
NESS INNOVATION RESEARCH PROGRAM OR 
SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM. 
(a) IN GENERAL.—Notwithstanding paragraph (1) of 
section 9(ff) of the Small Business Act (15 U.S.C. 
638(ff)(1)), during each of fiscal years 2026 through 2029, 
the Secretary of Defense may award one additional sequen-
tial Phase II SBIR award or one additional sequential 
Phase II STTR award during each such fiscal year to a 
small business concern that received an additional Phase 
II award under such paragraph (1) for continued work on 
the project for which the small business concern received 
such award. 
(b) LIMITATIONS.—In carrying out this section, the 
Secretary of Defense— 
(1) may use not more than 3 percent of the funds 
allocated to the SBIR program or STTR program of 
the Department, as applicable; 
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(2) shall minimize, to the maximum extent pos-
sible, the number of awards made using the authority 
under this section; and 
(3) shall notify the Administrator of the Small 
Business Administration of the use of the authority 
under this section before making an award under this 
section that includes an explanation of why the Sec-
retary elected to use the authority under this para-
graph instead of seeking a Phase III award for such 
project. 
(c) DEFINITIONS.—In this section, the terms ‘‘SBIR’’, 
‘‘STTR’’, and ‘‘Phase II’’ have the meanings given, respec-
tively, in section 9 of the Small Business Act (15 U.S.C. 
638). 
SEC. 884. CONGRESSIONAL NOTIFICATION REQUIREMENTS 
FOR SMALL BUSINESS CONCERNS FOR ANY 
SIGNIFICANT CONTRACT TERMINATION. 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall revise section 
249.7001 of the Department of Defense Supplement to the 
Federal Acquisition Regulation (or any successor regula-
tion) to extend the congressional notification requirements 
for any significant contract termination to include con-
tracts awarded to a small business concern (as defined 
under section 3 of the Small Business Act (15 U.S.C. 632)). 
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Subtitle H—Other Matters 
SEC. 891. SPECIAL OPERATIONS COMMAND URGENT INNO-
VATIVE TECHNOLOGIES AND CAPABILITIES 
PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Commander of the United 
States Special Operations Command shall carry out a pilot 
program to be known as the ‘‘USSOCOM Urgent Innova-
tive Technologies and Capabilities Pilot Program’’ (in this 
section referred to as the ‘‘Program’’) to accelerate the re-
search, development, testing, procurement, and initial 
sustainment of innovative technologies and equipment that 
enhance the operational capabilities of Special Operations 
Forces to meet emerging mission requirements. 
(b) REQUIREMENTS.—The Commander shall— 
(1) establish procedures for component special 
operations units to submit requests to the Commander 
for the inclusion of innovative technologies and equip-
ment in the Program; and 
(2) use authorities under section 167(e)(4) of 
title 10, United States Code, to carry out the Pro-
gram. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this section, and annu-
ally thereafter for the duration of the Program, the 
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Commander of the United States Special Operations 
Command shall submit to the congressional defense 
committees a report on the implementation and effec-
tiveness of the Program. 
(2) CONTENTS.—Each report shall include the 
following: 
(A) A summary of activities carried out 
under the Program along with documentation of 
planned expenditures. 
(B) An assessment of the effect of innovative 
technologies and equipment included in the Pro-
gram on the operational capabilities of the 
United States Special Operations Command. 
(C) Recommendations for the continuation, 
expansion, or modification of the Program. 
(D) A description of any challenges encoun-
tered and lessons learned. 
(E) A description of any action using estab-
lished procedures for a reprogramming of funds 
in an amount greater than the approved amount 
for such reprogramming, as established by Con-
gress, to carry out the Program. 
(d) SUNSET.—The authority to carry out the Program 
under this section shall terminate on the date that is five 
years after the date of the enactment of this Act. 
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589 
SEC. 892. INVENTORY OF TECHNICAL DATA RIGHTS FOR 
WEAPON SYSTEM SUSTAINMENT. 
(a) INVENTORY REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, each service ac-
quisition executive shall initiate a process to establish an 
inventory of the required covered data related to procured 
covered systems. Such inventory shall be made available for 
use by employees of the Department of Defense or depot 
maintenance support contractors. 
(b) REVIEW OF REQUIREMENTS.—In conducting the 
inventory required by subsection (a), each service acquisi-
tion executive shall review requirements for covered data 
identified during the design, development, and procurement 
of a covered system including, as applicable— 
(1) the planning for sustainment and the devel-
opment of a life cycle cost estimate for the covered 
system required by paragraphs (4) and (6) of section 
4251(b) of title 10, United States Code; 
(2) the life-cycle sustainment planning required 
by paragraph (10) of section 4252(b) of title 10, 
United States Code; 
(3) the estimate of requirements for core logistics 
capabilities required by paragraph (11) of such sec-
tion 4252(b); 
(4) the actions planned to acquire technical data 
required by paragraph (13) of such section 4252(b); 
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(5) the assessment of the long-term technical data 
needs required by subsection (a)(1)(A) of section 3774 
of title 10, United States Code; 
(6) the acquisition strategy to provide for tech-
nical data rights required by subsection (a)(1)(B) of 
such section 3774; 
(7) the assessment and strategy related to inclu-
sion of a priced contract option required by sub-
section (b)(2) of such section 3774; 
(8) the assessment and strategy related to the po-
tential for changes in the sustainment plan over the 
life cycle of the covered system required by subsection 
(b)(3) of such section 3774; 
(9) the product support strategy developed by the 
product support manager under section 4324(b)(1)(A) 
of title 10, United States Code, as in effect on the day 
before the date of the enactment of this Act; 
(10) requirements related to rights in technical 
data as described in section 3772 of title 10, United 
States Code. 
(11) requirements related to acquisition or li-
censing of intellectual property required by section 
3791 of title 10, United States Code, as it pertains 
to the covered system; 
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(12) the intellectual property management plan 
for product support required by section 4324(b)(1)(G) 
of title 10, United States Code, as in effect on the day 
before the date of the enactment of this Act; and 
(13) the identification of major maintenance and 
overhaul requirements that will be required during 
the life cycle of the covered system required by section 
4324(b)(1)(J) of title 10, United States Code, as in ef-
fect on the day before the date of the enactment of this 
Act. 
(c) IDENTIFICATION AND ASSESSMENT.—After com-
pleting the inventory required by subsection (a), the service 
acquisition executive shall publish an assessment of covered 
data related to procured covered systems. In conducting this 
assessment, the service acquisition executive shall, for each 
requirement identified in subsection (b)— 
(1) confirm that the service acquisition executive 
has, or has access to, the covered data described in the 
requirement; 
(2) describe the physical or electronic storage lo-
cation of the covered data that is in the possession of 
the service acquisition executive concerned, or the 
method of access to the covered data, as applicable; 
and 
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(3) describe the category of rights, including cus-
tomized commercial licenses or specially negotiated li-
censes, associated with the covered data. 
(d) IDENTIFICATION OF INSUFFICIENCY.—Based on the 
review of requirements in subsection (b) and the assessment 
required by subsection (c), the service acquisition executive 
shall specifically identify any insufficiency in the posses-
sion of, or access to, covered data that negatively affects the 
ability of a Secretary of a military department to effectively 
operate the procured covered system and maintain it in a 
cost-effective manner. 
(e) COST ESTIMATE.—For each procured covered sys-
tem, the service acquisition executive shall— 
(1) work with any contractor for such procured 
covered system to— 
(A) determine the best approach to remedy 
an insufficiency identified pursuant to sub-
section (d) in the most cost-effective manner 
practicable; and 
(B) develop a cost estimate associated such 
remedy; and 
(2) provide to the Secretary of Defense and chiefs 
of the Armed Forces the cost estimate described in 
paragraph (1)(B) and a recommended plan of action, 
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including the funding required to provide such rem-
edy. 
(f) QUARTERLY UPDATES TO CONGRESS.—Not later 
than April 1, 2026, and every 90 days thereafter until the 
inventory required by subsection (a) is complete, each serv-
ice acquisition executive shall provide to the congressional 
defense committees a briefing on— 
(1) progress made toward completing the inven-
tory; 
(2) a summary of findings from the inventory; 
(3) efforts to remedy an insufficiency in covered 
data, including a summary of actions to fund such 
remedy; 
(4) a description of the method used in negoti-
ating with any relevant contractor to access covered 
data, including use of customized commercial licenses 
or specially negotiated licenses, associated with the 
covered data; and 
(5) any lessons learned to plan for and acquire 
covered data related to procured covered systems. 
(g) ADVICE AND ASSISTANCE.—The cadre of intellec-
tual property experts established under section 1707 of title 
10, United States Code, shall provide advice, assistance, 
and resources to a service acquisition executive in con-
ducting an inventory required by this section. 
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(i) DEFINITIONS.—In this Act: 
(1) The term ‘‘service acquisition executive’’ has 
the meaning given in section 101 of title 10, United 
States Code. 
(2) The term ‘‘covered system’’ means— 
(A) a major defense acquisition program as 
defined in section 4201 of title 10, United States 
Code; or 
(B) an acquisition program or project that 
is carried out using the rapid prototyping or 
rapid fielding acquisition pathway under section 
3602 of such title that is estimated by the Sec-
retary of Defense to require an eventual total ex-
penditure described in section 4201(a)(2) of such 
title. 
(3) The term ‘‘covered data’’ means technical 
data and computer software. 
(4) The term ‘‘depot maintenance support con-
tractor’’ means a contractor performing a contract 
under the direction and control of the Secretary of 
Defense in support of depot-level maintenance and re-
pair (as defined in section 2460 of title 10, United 
States Code). 
(5) The term ‘‘procured covered system’’ means a 
covered system for which the Secretary of Defense has 
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595 
taken delivery of, has access to, or has negotiated 
terms to enable guaranteed access or delivery at a fu-
ture date, for use by employees of the Department of 
Defense or depot maintenance support contractors. 
SEC. 893. ESTABLISHING BIOBASED PRODUCT MERIT GUID-
ANCE. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Under Secretary of 
Defense for Research and Engineering, in coordination with 
the Secretaries of the military departments, shall develop 
and make public available guidance for private entities on 
how such entities can effectively prove that a biobased prod-
uct of such entity provides capabilities meeting the require-
ments of the Department of Defense. 
(b) ANALYSIS.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct an analysis of the 
process of the Department of Defense for developing 
requirements to determine if such processes inten-
tionally or unintentionally exclude biobased products. 
(2) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Comptroller 
General of the United States shall submit to the con-
gressional defense committees a report on the findings 
of the analysis conducted under paragraph (1) and, 
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if Comptroller General determines through such anal-
ysis that the processes described in such paragraph 
exclude biobased products, containing recommenda-
tions of the Comptroller General to reduce such exclu-
sion. 
(c) BIOBASED PRODUCT DEFINED.—In this section, 
the term ‘‘biobased product’’ means a product manufac-
tured, produced, or developed through the application living 
organisms to alter living or non-living materials. 
SEC. 894. COMPTROLLER GENERAL ASSESSMENT OF COM-
PETITIVE EFFECTS OF MERGERS AND ACQUI-
SITIONS OF DEFENSE CONTRACTORS. 
The Comptroller General of the United States shall 
conduct an assessment and submit to the congressional de-
fense committees a report on the competitive effects of merg-
ers and acquisitions of defense contractors during the ten- 
year period preceding the date of the enactment of this Act 
that includes— 
(1) the effectiveness of any remedy relating to a 
merger or acquisition of defense contractors on defense 
industry competition and defense industrial base sus-
tainability; 
(2) the effectiveness of information sharing be-
tween the Attorney General, the Federal Trade Com-
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mission, and the Secretary of Defense in the merger 
and acquisition review process; 
(3) an analysis of the processes used by the Sec-
retary of Defense for measuring the effect of vertical 
integration of defense contractors on competition, in-
cluding data collection and the ability to access infor-
mation from defense contractors that are parties to 
the merger or acquisition to assess anticompetitive 
practices among defense contractors; and 
(4) implementation of previous recommendations 
of the Comptroller General, the Secretary of Defense, 
or the Defense Science Board to enhance competition 
among defense contractors. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Office of the Secretary 
of Defense and Related Matters 
SEC. 901. PROHIBITION OF DIVERSITY, EQUITY, AND INCLU-
SION PROGRAMS OF THE DEPARTMENT OF 
DEFENSE. 
(a) REPEAL OF REPORTING REQUIREMENTS ON DI-
VERSITY AND INCLUSION.—Section 113 of title 10, United 
States Code, is amended— 
(1) in subsection (c)— 
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(A) by striking paragraph (2); and 
(B) by redesignating paragraphs (3) and 
(4) as paragraphs (2) and (3), respectively; 
(2) in subsection (g)(1)(B)— 
(A) by striking clause (vii); and 
(B) by redesignating clauses (viii), (ix), and 
(x) as clauses (vii), (viii), and (ix), respectively; 
and 
(3) by striking subsections (l) and (m) and by 
redesignating subsections (n) and (o) as subsections 
(l) and (m), respectively. 
(b) REPEAL OF CHIEF DIVERSITY OFFICER.—Section 
147 of title 10, United States Code, is repealed. 
(c) REPEAL OF PROGRAM ON DIVERSITY IN MILITARY 
LEADERSHIP.—Section 656 of title 10, United States Code, 
is repealed. 
(d) PROHIBITED DIVERSITY, EQUITY, AND INCLUSION 
PRACTICES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary of Defense may not— 
(A) maintain an office relating to diversity, 
equity, inclusion, or accessibility or any substan-
tially similar office; 
(B) maintain or employ a chief diversity of-
ficer or a substantially similar officer; 
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(C) develop, implement, distribute, or pub-
lish— 
(i) plans, strategic plans, reports, or 
surveys relating to diversity, equity, inclu-
sion, and accessibility; 
(ii) action plans, reports, or surveys 
relating to equity or substantially similar 
plans, reports, or surveys; 
(D) develop, implement, or maintain an 
employee resource group or an affinity group 
based on race, color, ethnicity, religion, national 
origin, sexual orientation, or gender identity; 
(E) develop, implement, or maintain an 
agency equity team or a substantially similar 
team; 
(F) develop, implement, distribute, publish, 
establish, or purchase— 
(i) a training course relating to— 
(I) diversity; 
(II) equity; 
(III) inclusion; 
(IV) a critical theory relating to 
race, gender, or otherwise; or 
(V) intersectionality; or 
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(ii) a training course substantiality 
similar to a training course described in 
clause (i); 
(G) develop, implement, or maintain a di-
versity, equity, inclusion, and accessibility data 
dashboard or a substantially similar data dash-
board; or 
(H) maintain or employ a position relating 
to diversity, equity, inclusion, or accessibility. 
(2) RULE OF CONSTRUCTION.—Nothing in para-
graph (1) shall be construed to prevent the Secretary 
of Defense from maintaining or operating— 
(A) Equal Employment Opportunity offices 
as historically organized and operated within the 
Department of Defense; or 
(B) an office enforcing the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
or similar programs or offices as historically or-
ganized and operated within the Department of 
Defense. 
SEC. 902. MODIFICATION TO AUTHORITIES OF THE UNDER 
SECRETARY OF DEFENSE FOR RESEARCH 
AND ENGINEERING. 
Section 133a(b) of title 10, United States Code, is 
amended— 
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(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(4) having the authority to direct the Secre-
taries of the military departments and the heads of 
other elements of the Department with regard to mat-
ters for which the Under Secretary has responsibility; 
and 
‘‘(5) conducting developmental prototyping, de-
signing and executing experiments of prototypes in 
the field to demonstrate operational relevance to ad-
dress joint force capability gaps, and encouraging 
and supporting the rapid transition of technology 
from the research and development phase into oper-
ational use within the Department.’’. 
SEC. 903. MODIFICATION TO AUTHORITIES OF THE DIREC-
TOR OF OPERATIONAL TEST AND EVALUA-
TION. 
Section 139 of title 10, United States Code, as amend-
ed by section 1801 of this Act, is further amended— 
(1) in subsection (b)— 
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(A) in paragraph (6), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (7), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(8) coordinate with operational test and evalua-
tion organizations of the armed forces to review their 
service-approved test and evaluation master plans.’’; 
(2) in subsection (k), by inserting ‘‘, and shall 
not be subject to any limitation that does not allow 
for sufficient staffing to fulfill the duties and respon-
sibilities assigned by this section’’ before the period at 
the end; and 
(3) by adding at the end the following new sub-
section: 
‘‘(l)(1) The Director may enter into contracts with one 
or more federally funded research and development centers 
pursuant to which personnel of such centers may assist the 
Director with program oversight, including through— 
‘‘(A) test planning, preparation and moni-
toring; 
‘‘(B) data collection; 
‘‘(C) data analysis; 
‘‘(D) drafting and reviewing test reports; 
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‘‘(E) providing technical expertise and sup-
port to program offices; and 
‘‘(F) performing such other duties as the 
Director determines appropriate. 
‘‘(2) The Secretary of Defense shall ensure that the Di-
rector has sufficient funding to enter into the contracts for 
which authorization is provided under paragraph (1).’’. 
SEC. 904. ADDITIONAL AUTHORITIES FOR THE OFFICE OF 
STRATEGIC CAPITAL. 
Section 149(e) of title 10, United States Code, is 
amended— 
(1) in paragraph (3)(A)(ii)(VI), by striking 
‘‘Secretary’’ and inserting ‘‘Director’’; 
(2) by amending clause (ii) of paragraph (5)(A) 
to read as follows: 
‘‘(ii) The Department of Defense Credit 
Program Account shall be credited with 
amounts appropriated pursuant to the au-
thorization of appropriations and fees and 
payments received under paragraph (6).’’; 
(3) by redesignating paragraphs (6) through (9) 
as paragraphs (7) through (10), respectively; and 
(4) by inserting after paragraph (5) the fol-
lowing new paragraph: 
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‘‘(6)(A) The Director may charge and collect fees 
and collect payments to reimburse costs incurred by 
the Office in connection with an application for, or 
as a condition of an eligible entity receiving or re-
structuring, capital assistance under this subsection. 
The Director may set the fees at a level that the Di-
rector considers appropriate. Fees and payments re-
ceived under this paragraph shall be credited to the 
Department of Defense Credit Program Account to re-
main available until expended for costs and expendi-
tures as provided under clauses (ii) through (iv) of 
paragraph (5)(B). 
‘‘(B)(i) Except as provided in clause (ii), no fees 
or payments may be received pursuant to the author-
ity provided under subparagraph (A) as of the date 
specified in paragraph (11). 
‘‘(ii) With respect to loan and loan guarantees 
for which an obligation was incurred prior to the ex-
piration date in paragraph (11), the Director may 
continue to charge and collect fees and cost reimburse-
ments in connection with such loan and loan guar-
antee assets until fully collected.’’. 
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SEC. 905. FURTHER MODIFICATIONS TO CAPITAL ASSIST-
ANCE PROGRAM OF THE OFFICE OF STRA-
TEGIC CAPITAL. 
Section 149 of title 10, United States Code, as amend-
ed by section 904, is further amended— 
(1) in subsection (d), by inserting ‘‘or equity in-
vestment’’ after ‘‘direct loan’’; 
(2) in subsection (e)— 
(A) in paragraph (3)— 
(i) in subparagraph (A)(ii)(I), by 
amending item (bb) to read as follows: 
‘‘(bb) The Director may waive the re-
quirement under item (aa) with respect to 
an investment if— 
‘‘(AA) the investment is deter-
mined by the Secretary of Defense, act-
ing through the Director, to be vital to 
the national security of the United 
States; or 
‘‘(BB) in the case of a convertible 
debt instrument, the Director believes 
the total return on investment of such 
convertible debt instrument will exceed 
the total return on investment of a 
loan with an interest rate at the yield 
on marketable securities of a similar 
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maturity to the maturity of the loan 
on the date of execution of the loan 
agreement.’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(D)(i) The Director may, as a minority inves-
tor, support an eligible investment selected pursuant 
to subsection (d) with funds or use other mechanisms 
for the purpose of purchasing, and may make and 
fund commitments to purchase, invest in, make 
pledges in respect of, or otherwise acquire, financial 
interests (including equity and quasi-equity securities 
(such as warrants)) of the eligible entity receiving 
support for the eligible investment, including as a 
limited partner or other investor in investment funds, 
upon such terms and conditions as the Secretary may 
determine. 
‘‘(ii) The Director may seek to sell and liquidate 
any support for an eligible investment provided under 
subparagraph (A)(i) commensurate with other similar 
investors in the eligible investment and taking into 
consideration the national security interests of the 
United States.’’; 
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(B) 
by 
redesignating 
paragraphs 
(7) 
through (10) as paragraphs (8) through (11), re-
spectively; 
(C) by inserting after paragraph (6) the fol-
lowing new paragraph: 
‘‘(7)(A) There is established in the Treasury of 
the United States a Department of Defense Equity 
Program Account to hold equity instruments obtained 
under this subsection. 
‘‘(B) In addition to equity instruments described 
in subparagraph (A), the Equity Program Account 
shall consist of amounts appropriated to carry out 
this subsection.’’; and 
(D) by amending paragraph (10), as so re-
designated, to read as follows: 
‘‘(10) The Director shall notify the congressional 
defense committees not later than 30 days after any 
capital assistance is provided under this subsection.’’; 
and 
(E) in paragraph (11), as so redesignated, 
by adding at the end the following new subpara-
graph: 
‘‘(C) The authority of the Director to make 
equity investments under this subsection shall ex-
pire on October 1, 2028. Any equity investments 
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made under this subsection that are outstanding 
as of such date shall continue to be subject to the 
terms, conditions, and other requirements of this 
subsection.’’. 
(3) in subsection (f), by amending paragraph (1) 
to read as follows: 
‘‘(1) The term ‘capital assistance’ means a loan, 
loan guarantee, convertible debt instrument, equity se-
curity, quasi-equity security (such as a warrant), or 
technical assistance.’’. 
Subtitle B—Other Department of 
Defense Organization and Man-
agement Matters 
SEC. 911. MEMBERSHIP OF COMMANDANT OF THE COAST 
GUARD ON THE JOINT CHIEFS OF STAFF. 
(a) MEMBERSHIP ON THE JOINT CHIEFS OF STAFF.— 
Section 151(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(9) The Commandant of the Coast Guard.’’. 
(b) APPOINTMENT
OF
CHAIRMAN; GRADE
AND 
RANK.—Section 152 of such title is amended— 
(1) in subsection (b)(1)(B) by striking ‘‘or the 
Chief of Space Operations’’ and inserting ‘‘the Chief 
of Space Operations, or the Commandant of the Coast 
Guard’’; and 
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(2) in subsection (c), by striking ‘‘Navy’’ and in-
serting ‘‘Navy or Coast Guard’’. 
(c) VICE CHAIRMAN.—Section 154(f) of such title is 
amended by striking ‘‘Navy’’ and inserting ‘‘Navy or Coast 
Guard’’. 
(d) INCLUSION ON THE JOINT STAFF.—Section 155(a) 
of such title is amended— 
(1) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘(other than the Coast Guard)’’; 
(B) in subparagraph (B), by striking ‘‘and’’ 
at the end; 
(C) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
subparagraph: 
‘‘(D) the Coast Guard.’’; and 
(2) in paragraph (3), by striking ‘‘Secretary of 
the military department having jurisdiction over that 
armed force’’ and inserting ‘‘Secretary concerned’’. 
(e) DUTIES AS MEMBER OF JOINT STAFF.—Section 
302 of title 14, United States Code, is amended— 
(1) by striking ‘‘The President may’’ and insert-
ing the following: 
‘‘(a) The President may’’; and 
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(2) by adding at the end the following new sub-
section: 
‘‘(b)(1) The Commandant of the Coast Guard shall also 
perform the duties prescribed for the Commandant as a 
member of the Joint Chiefs of Staff under section 151 of 
title 10. 
‘‘(2) To the extent that such action does not impair 
the independence of the Commandant in the performance 
of the Commandant’s duties as a member of the Joint Chiefs 
of Staff, the Commandant shall inform the Secretary of the 
department in which the Coast Guard is operating regard-
ing military advice rendered by members of the Joint Chiefs 
of Staff on matters affecting such department. 
‘‘(3) Subject to the authority, direction, and control 
of the Secretary of Defense, the Commandant shall keep the 
Secretary of the department in which the Coast Guard is 
operating fully informed of significant military operations 
affecting the duties and responsibilities of such Secretary.’’. 
SEC. 912. JOINT COUNTER-SMALL UNMANNED AIRCRAFT 
SYSTEMS OFFICE. 
(a) IN GENERAL.—Subchapter I of chapter 8 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
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‘‘§ 199. Joint Counter-Small Unmanned Aircraft Sys-
tems Office 
‘‘(a) ESTABLISHMENT.—There is established in the De-
partment of Defense a joint activity to be known as the 
‘Joint Counter-Small Unmanned Aircraft Systems Office’ 
(referred to in this section as the ‘Office’). 
‘‘(b) DIRECTOR.— 
‘‘(1) There is a Director of the Office (referred to 
in this section as the ‘Director’) who shall be ap-
pointed by the Secretary of Defense from among per-
sonnel of the Department of Defense who are— 
‘‘(A) general or flag officers of the covered 
armed forces; or 
‘‘(B) members of the Senior Executive Serv-
ice. 
‘‘(2) The Director shall report directly to Deputy 
Secretary of Defense and shall serve as the principal 
advisor to the Deputy Secretary and the Chairman of 
the Joint Chiefs of Staff on counter-small unmanned 
aircraft system matters. 
‘‘(c) ORGANIZATION.—The Office shall— 
‘‘(1) be designated as a jointly manned activity; 
and 
‘‘(2) shall consist of such other subordinate orga-
nizational elements as the Director determines appro-
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priate, subject to the authority, direction, and control 
of the Secretary of Defense. 
‘‘(d) RESPONSIBILITIES.—The Office shall do the fol-
lowing: 
‘‘(1) Lead, advocate, coordinate, and focus all 
Department of Defense actions in support of efforts of 
the combatant commands and the covered armed 
forces to defeat small unmanned aircraft systems (re-
ferred to in this section as ‘sUAS’) as weapons of 
strategic influence. 
‘‘(2) 
Integrate 
all 
counter-sUAS 
solutions 
throughout the Department of Defense, seeking inter-
agency assistance as necessary. 
‘‘(3) Identify innovative near-term (executable 
within a 5 year timeframe) counter-sUAS solutions. 
‘‘(4) Coordinate with other components of the 
Department of Defense to carry out ongoing mid-term 
(covering a 5-10 year timeframe) research and devel-
opment initiatives and long-term (covering a time-
frame exceeding 10 years) science and technology ef-
forts that could help address the counter-sUAS threat. 
‘‘(5) Coordinate efforts of the Department of De-
fense to identify, assess, and disrupt adversarial un-
manned aircraft system supply chains and financial 
threat networks that support such supply chains. 
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‘‘(6) Coordinate with the United States Northern 
Command, or any successor entity serving as the lead 
synchronizer for homeland counter small unmanned 
aircraft systems, to develop and deploy counter-sUAS 
capabilities for homeland defense. 
‘‘(7) Develop and share counter-sUAS training 
tools, expertise, and tactics, techniques, and proce-
dures for components of the Department of Defense 
that address needs of the joint force, deploying forces, 
installation defense within and outside the United 
States, and other relevant scenarios. 
‘‘(8) Coordinate efforts across the Department of 
Defense to develop, test, evaluate, and procure 
counter-sUAS kinetic and non-kinetic defeat capabili-
ties, including— 
‘‘(A) systems to sense, identify, track, and 
defeat small unmanned aircraft systems, both 
kinetically and non-kinetically; 
‘‘(B) command and control systems; and 
‘‘(C) such other capabilities the Director de-
termines appropriate. 
‘‘(9) Carry out the counter-sUAS validation and 
acquisition responsibilities described in subsections 
(e) and (f). 
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‘‘(10) Develop and regularly update a counter- 
sUAS strategic plan in accordance with subsection 
(g). 
‘‘(11) Carry out such other activities relating to 
counter-sUAS as the Secretary of Defense determines 
appropriate. 
‘‘(e) APPROVAL AND VALIDATION OF COUNTER-SUAS 
SYSTEMS.— 
‘‘(1) The Office shall serve as the entity within 
the Department of Defense with primary responsi-
bility for the validation and approval of counter- 
sUAS systems for procurement and use by the De-
partment. 
‘‘(2) In coordination with other components of 
the Department of Defense, the Director shall develop, 
maintain, and regularly update a list of counter- 
sUAS systems that are validated and approved for 
procurement and use by the Department as described 
in paragraph (1). The Director shall ensure that each 
counter-sUAS system on the list has been vetted by 
the Office and has proven to be effective for use by the 
Department in countering sUAS. 
‘‘(3) Except as provided in paragraph (4), no 
component of the Department of Defense may procure 
a counter-sUAS system unless such system— 
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‘‘(A) has been validated and approved by 
the Office under paragraph (1); and 
‘‘(B) is included on the list maintained 
under paragraph (2). 
‘‘(4) The service acquisition executive of the mili-
tary department concerned (in the case of a procure-
ment by a military department) or the Under Sec-
retary of Defense for Acquisition and Sustainment 
(in the case of a procurement not under the authority 
of a service acquisition executive) may waive the re-
striction under paragraph (3), on a case-by-case 
basis, by submitting to the congressional defense com-
mittees— 
‘‘(A) notice of the intent to issue such a 
waiver; and 
‘‘(B) an explanation of the reasons for 
issuing the waiver. 
‘‘(f) ACQUISITION OVERSIGHT DIVISION.—The Direc-
tor shall establish and maintain an acquisition oversight 
division within the Office. The acquisition oversight divi-
sion shall— 
‘‘(1) include acquisition professionals from rel-
evant Program Executive Offices within each covered 
armed force; 
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‘‘(2) support and facilitate efforts of the covered 
armed forces— 
‘‘(A) to budget and plan for the integration 
and sustainment of counter-sUAS capabilities 
that are approved and validated by the Office 
under subsection (e); and 
‘‘(B) to efficiently and effectively transition 
such capabilities into operational use; and 
‘‘(3) have such other duties and responsibilities 
as the Director determines appropriate. 
‘‘(g) COUNTER-SUAS STRATEGIC PLAN.— 
‘‘(1) The Director shall coordinate with relevant 
components of the Department of Defense, to develop, 
publish, and regularly update a strategic plan for the 
counter-sUAS activities of the Department, which 
shall include— 
‘‘(A) measures to coordinate the various 
counter-sUAS efforts of the Department to ensure 
cohesion among such efforts; 
‘‘(B) guidance for counter-sUAS related in-
vestment and manpower decisions across the De-
partment, including necessary science and tech-
nology investments; and 
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‘‘(C) performance measures, goals, and lines 
of effort required to achieve the strategic objec-
tives of the plan. 
‘‘(2) Not later than 120 days after the date on 
which the Office commences operations, the Director 
shall complete and submit to the congressional defense 
committees the initial strategic plan developed under 
paragraph (1). 
‘‘(3) Not less frequently than once every two 
years after completion of the initial strategic plan 
under paragraph (2), the Director shall— 
‘‘(A) update the plan; and 
‘‘(B) submit the updated plan to the con-
gressional defense committees. 
‘‘(4) Following completion of each version of the 
strategic plan under this subsection, each commander 
of a geographic combatant command shall develop an 
implementation plan to guide the combatant com-
mand overseen by that commander in achieving the 
vision, mission, goals, and performance measures of 
the strategic plan. 
‘‘(h) ANNUAL REPORTS.—On an annual basis, the Di-
rector shall submit to the congressional defense committees 
a report that includes— 
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‘‘(1) a summary of the activities of the Office 
over the period covered by the report, including a de-
scription of— 
‘‘(A) the progress of the Office in carrying 
out the requirements of this section; and 
‘‘(B) the metrics used to measure such 
progress; and 
‘‘(2) a summary of the expenditures made by the 
Office in the period covered by the report for counter- 
sUAS related research, development, test, and evalua-
tion, procurement, and sustainment activities. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) The term ‘counter-sUAS system’ means a 
system or device capable of lawfully and safely dis-
abling, disrupting, or seizing control of a small un-
manned aircraft or small unmanned aircraft system. 
‘‘(2) The term ‘covered armed forces’ means the 
Army, Navy, Air Force, Marine Corps, and Space 
Force. 
‘‘(3) The terms ‘small unmanned aircraft’, ‘un-
manned aircraft’, and ‘unmanned aircraft system’ 
have the meanings given those terms in section 44801 
of title 49.’’. 
(b) STRATEGY AND FUNDING PLAN.—Not later than 
180 days after the date of the enactment of this Act, the 
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Secretary of Defense shall submit to the congressional de-
fense committees a report that includes— 
(1) a strategy to ensure the Joint Counter-Un-
manned Aircraft Systems Office has the funding and 
other resources necessary to execute its responsibil-
ities, as required under section 199 of title 10, United 
States Code (as added by subsection (a)); and 
(2) a plan for funding the Office across the pe-
riod covered by the most recent future-years defense 
program submitted to Congress under section 221 of 
title 10, United States Code (as of the date of the re-
port). 
SEC. 913. AUTHORITY TO ESTABLISH REGIONAL OUTREACH 
CENTERS FOR THE DEFENSE INNOVATION 
UNIT. 
Section 4127 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsection (f) as subsection 
(g); and 
(2) by inserting after subsection (e) the following 
new subsection: 
‘‘(f) REGIONAL OUTREACH CENTERS.— 
‘‘(1) IN GENERAL.—The Director may establish 
and maintain regional offices of the Unit at locations 
within and outside the United States for purposes of 
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conducting outreach to and streamlining interactions 
between the Unit and the private sector, academia, 
and other mission partners. 
‘‘(2) SELECTION
CRITERIA
AND
OTHER
GUID-
ANCE.—In the event the Director exercises the author-
ity to establish and maintain regional offices under 
paragraph (1), the Director shall— 
‘‘(A) develop a strategy and criteria for the 
selection of locations for such offices; 
‘‘(B) issue any rules, regulations, policies, 
or guidance necessary for the operation of such 
offices; and 
‘‘(C) make the information described in sub-
paragraphs (A) and (B) available on a publicly 
accessible website of the Department of Defense.’’. 
SEC. 914. OVERSIGHT OF THE UNITED STATES AFRICA COM-
MAND. 
(a) LIMITATION.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2026 for the Department of Defense may be obli-
gated or expended to carry out an action described in sub-
section (b) until a period of 90 days has elapsed following 
the date on which the Secretary of Defense submits the cer-
tification and all other information required under sub-
section (c) with respect to such action. 
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(b) ACTIONS DESCRIBED.—The actions described in 
this subsection are the following: 
(1) Modifying or combining the responsibilities 
of the Commander of the United States Africa Com-
mand, as set forth in chapter 6 of title 10, United 
States Code, with those of any other commander des-
ignated under such authority. 
(2) Appointing an officer in a grade below O-10 
to serve as the Commander of the United States Afri-
ca Command. 
(3) Reducing the total number of personnel as-
signed to the United States Africa Command by a 
number that is greater than 15 percent of such total 
number so assigned as of June 1, 2025. 
(4) Divesting, consolidating, or otherwise return-
ing to a host country any sites included in the real 
property inventory of the United States Africa Com-
mand as of June 1, 2025. 
(c) CERTIFICATION
AND OTHER INFORMATION RE-
QUIRED.—The Secretary of Defense shall submit to the con-
gressional defense committees each of the following with re-
spect to any action described in subsection (b) that is pro-
posed to be taken by the Secretary: 
(1) A certification that, in the determination of 
the Secretary, the action is in the national security 
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interest of the United States and will be undertaken 
only after appropriate consultations with African, 
European, and other international partners on shared 
security objectives in Africa and its surrounding 
waters. 
(2) An analysis of the impact of such action 
on— 
(A) the security of the United States; 
(B) the threat of transnational terrorism in 
or emanating from Africa, especially groups with 
the capability or intent to attack the United 
States homeland or United States citizens, inter-
ests, or allies or partners; 
(C) the opportunities available to the Peo-
ple’s Republic of China to pursue their strategic 
objectives on the African continent and sur-
rounding areas, including their pursuit of addi-
tional military ports and bases to threaten the 
Atlantic Ocean and impact homeland defense; 
(D) the military activities of the Russian 
Federation and Russian-sponsored private mili-
tary companies on the African continent and in 
surrounding areas; 
(E) the ability of the Armed Forces to exe-
cute supporting operations for campaign plans 
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against adversaries deemed a priority in the Na-
tional Defense Strategy; 
(F) the ability of the Armed Forces to exe-
cute contingency and other operational plans of 
the Department of Defense, including in support 
of operations and crisis response and other oper-
ations; 
(G) the ability of the United States to 
maintain access in Africa and its surrounding 
waters, including to protect the freedom of navi-
gation; 
(H) military training and major military 
exercises, including on interoperability, security 
cooperation, and joint activities with African al-
lies and partners; 
(I) United States deterrence of potential 
threats from the People’s Republic of China; and 
(J) United States deterrence and defense 
posture in the African theater and the homeland. 
(3) A detailed analysis of the costs for relocation 
of personnel, equipment, and associated infrastruc-
ture. 
(4) A description of consultations regarding such 
action with each relevant ally or partner including 
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those on the African continent, in the Middle East, 
and in Europe. 
(5) Independent risk assessments prepared by the 
Commander of the United States Africa Command, 
the Chairman of the Joint Chiefs of Staff, and any 
other combatant commander that may be affected by 
such action, of— 
(A) the impact of such action on the secu-
rity of the United States and the ability of the 
Armed Forces to defend the homeland forward; 
(B) the impact of such action on the ability 
of the Armed Forces to execute campaign and 
contingency plans of the Department of Defense, 
including in support of operations outside the 
area of responsibility of the United States Africa 
Command; and 
(C) the impact of such action on military 
training and major military exercises, including 
on interoperability and joint activities with re-
gional allies and partners. 
(d) CONSULTATION.—In preparing the certification 
and other information required under subsection (c), the 
Secretary of Defense shall consult with the Commander of 
the United States Africa Command and the commander of 
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any other geographic combatant command expected to be 
affected by an action described in subsection (b). 
(e) FORM.— 
(1) CERTIFICATION.—The certification required 
by subsection (c)(1) shall be submitted in unclassified 
form. 
(2) OTHER INFORMATION.—The information de-
scribed in paragraphs (2) through (5) of subsection 
(c) may be submitted in classified form. 
(3) SPECIAL RULE FOR INDEPENDENT RISK AS-
SESSMENTS.—Each independent risk assessment re-
quired by subsection (c)(5) shall be submitted in 
unaltered format. 
SEC. 915. LIMITATION ON AVAILABILITY OF FUNDS FOR 
THE ARMY PENDING SUBMITTAL OF PLAN ON 
THE PROPOSED INTEGRATION OF THE JOINT 
MUNITIONS 
COMMAND 
AND 
THE 
ARMY 
SUSTAINMENT COMMAND. 
(a) IN GENERAL.—None of the funds authorized to be 
appropriated by this Act or otherwise made available for 
fiscal year 2026 for the Army may be obligated or expended 
to restructure the Joint Munitions Command and the Army 
Sustainment Command (referred to in this section collec-
tively as the ‘‘Commands’’) until the Secretary of the Army 
submits to the Committees on Armed Services of the Senate 
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and the House of Representatives a report regarding the 
proposed plan of the Secretary to integrate the Commands. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include the following: 
(1) A detailed comparison of the old organiza-
tional structures of the Commands compared with the 
proposed new integration construct for such organiza-
tional structures, including any changes to reporting 
chains, leadership roles, and workforce. 
(2) The planned timeline for implementation of 
such integration. 
(3) Any plans for changing the numbers, duty 
locations, or responsibilities of personnel under the 
Commands. 
(4) A mission justification for the proposed inte-
gration. 
(5) An assessment of the short-term and long- 
term impacts of the proposed integration on the read-
iness of the Army and the Department of Defense to 
conduct the missions of the Commands and the plan 
of the Army for mitigating those impacts. 
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SEC. 916. LIMITATION ON AUTHORITY TO REDUCE IN RANK 
THE BILLETS OF THE COMMANDING OFFI-
CERS OF CERTAIN MILITARY INSTALLATIONS 
OF THE AIR FORCE. 
(a) LIMITATION.—The Secretary of the Air Force may 
not reduce the rank of the billet of the commanding officer 
of a military installation, described in subsection (b), below 
O-7, until 90 days after such Secretary submits to the Com-
mittees on Armed Services of the Senate and House of Rep-
resentatives a report described in subsection (c). 
(b) MILITARY INSTALLATION DESCRIBED.—A military 
installation described in this subsection— 
(1) is the home station of more than one wing 
of the Air Force, regardless of component; 
(2) is a training site for pilots of an armed force 
of an ally or partner country; and 
(3) contains a national test and training range. 
(c) REPORT.—A report described in this subsection 
shall include an explanation of how the Secretary decided 
to make a reduction described in subsection (a), taking into 
consideration— 
(1) cost, workload, and workforce requirements; 
and 
(2) operational effect. 
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SEC. 917. DETERMINATION OF LEAD ORGANIZATION RE-
SPONSIBLE FOR APPROVAL AND VALIDATION 
OF CERTAIN UNMANNED AIRCRAFT SYSTEMS 
AND COMPONENTS. 
(a) DETERMINATION REQUIRED.—The Secretary of 
Defense shall determine— 
(1) whether the Defense Innovation Unit should 
continue to be the organization within the Depart-
ment of Defense with primary responsibility for the 
execution of the Blue UAS Cleared List and the Blue 
UAS Framework (collectively referred to in this sec-
tion as the ‘‘Blue UAS Initiatives’’); or 
(2) whether another organization within the De-
partment should assume primary responsibility for 
executing the Blue UAS Initiatives. 
(b) ADDITIONAL REQUIREMENTS.—In making the de-
termination required under subsection (a), the Secretary of 
Defense shall— 
(1) conduct a thorough analysis of the Blue UAS 
Initiatives as executed by the Defense Innovation 
Unit at the time of the determination; 
(2) assess whether the Unit, as of the time of the 
determination, has adequate resources and capabili-
ties (including personnel, funding, and authorities) to 
effectively scale and execute the Initiatives across the 
Department of Defense; and 
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