613 
‘‘(iv) Any additional comments that the 
Secretary considers appropriate regarding the 
inadequate levels of efficiency and effectiveness 
achieved by the proposed budgets. 
‘‘(2) None of the funds authorized to be appro-
priated or otherwise made available for any fiscal 
year for the covered activities of a Defense Agency 
or a Department of Defense Field Activity may be 
obligated or expended unless— 
‘‘(A) the head of the Agency or Activity 
submits to the Chief Management Officer a 
plan for the obligation and expenditure of such 
funds; and 
‘‘(B) the Chief Management Officer ap-
proves the plan. 
‘‘(3) Nothing in this subsection shall be con-
strued to modify or interfere with the budget-related 
responsibilities of the Director of National Intel-
ligence.’’. 
(3) COVERED
ACTIVITIES
DEFINED.—Section 
132a of title 10, United States Code (as amended by 
paragraphs (1) and (2)) is further amended by add-
ing at the end the following: 
‘‘(f) COVERED ACTIVITIES DEFINED.—In this sec-
tion, the term ‘covered activities’ means any activity relat-
614 
ing to civilian resources management, logistics manage-
ment, services contracting, or real estate management.’’. 
(b) STREAMLINING OF CERTAIN FUNCTIONS ACROSS 
THE DEPARTMENT OF DEFENSE.— 
(1) STREAMLINING OF FUNCTIONS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), not later than January 1, 
2021, and not less frequently than once every 
five years thereafter, the Secretary of Defense, 
acting through the Chief Management Officer 
of the Department Defense, shall reduce or 
eliminate duplicative functions across all organi-
zations and elements of the Department of De-
fense with respect to the covered activities. 
(B) EXCEPTION.—The military services 
shall not be included in any reductions or elimi-
nations carried out under subparagraph (A) on 
or before January 1, 2021. 
(2) CERTIFICATION AND REVIEW OF COST SAV-
INGS.— 
(A) CERTIFICATION.—Not later January 
1, 2021, the Chief Management Officer shall 
certify to the congressional defense committees 
that the reductions and eliminations carried out 
under paragraph (1) accomplished savings with
615 
respect to the total amount obligated and ex-
pended for the covered activities in fiscal year 
2020 that were not less than 25 percent of the 
baseline amount. 
(B) GAO REVIEW.—Not later than 30 
days after the submission of the certification 
under subparagraph (A), the Comptroller Gen-
eral of the United States shall submit to the 
congressional defense committees a report that 
verifies whether the savings reported by the 
Chief Management Officer under such subpara-
graph are accurate. 
(C) BASELINE
AMOUNT.—For the pur-
poses of this paragraph, the baseline amount is 
the total amount obligated and expended by or-
ganizations and elements of the Department of 
Defense other than the military services for fis-
cal year 2018 for the covered activities— 
(i) increased by a credit for the 
amount of any reductions in the costs of 
such activities that are documented, as of 
the date that is 90 days after the date of 
the enactment of this Act, as having been 
accomplished in accordance with section 
346 of the National Defense Authorization
616 
Act for Fiscal Year 2016 (Public Law 
114–92;.10 U.S.C. 111 note); and 
(ii) decreased by the amount of any 
reductions in costs for such activities that 
are documented, as of the date that is 90 
days after the date of the enactment of 
this Act, as having been accomplished in 
accordance with other sections of this sub-
title. 
(D) TREATMENT OF CERTAIN COST SAV-
INGS.—For the purposes of calculating the per-
centage cost savings accomplished by the Chief 
Management Officer under subparagraph (A), 
any reduction in costs documented, as of the 
date that is 90 days after the date of the enact-
ment of this Act, as having been accomplished 
in accordance with section 346 of the National 
Defense Authorization Act for Fiscal Year 2016 
(Public Law 114–92;.10 U.S.C. 111 note) shall 
be treated as a reduction accomplished by the 
Chief Management Officer under paragraph 
(1). 
(3) PLAN AND REVIEW.— 
(A) PLAN
REQUIRED.—Not later than 
March 1, 2020, the Chief Management Officer
617 
shall submit to the congressional defense com-
mittees a plan for complying with paragraphs 
(1) and (2). 
(B) GAO REVIEW.—Not later than 30 
days after the submission of the plan under 
subparagraph (A), the Comptroller General of 
the United States shall submit to the congres-
sional 
defense 
committees 
a 
report 
that 
verifies— 
(i) whether the plan submitted under 
subparagraph (A) is feasible; and 
(ii) whether any cost savings expected 
to result from the plan are accurate. 
(4) SUBSEQUENT REPORTS AND REVIEWS.— 
(A) CMO REPORTS.—Not later than Janu-
ary 1 of every fifth calendar year beginning 
with January 1, 2026, the Chief Management 
Officer shall submit to the congressional de-
fense committees a report that describes the ac-
tivities carried out by the Chief Management 
Officer under paragraph (1) during the pre-
ceding five years, including an estimate of any 
cost savings achieved as a result of such activi-
ties.
618 
(B) GAO REVIEW.—Not later than 30 
days after the submission of each report under 
subparagraph (A), the Comptroller General of 
the United States shall submit to the congres-
sional 
defense 
committees 
a 
report 
that 
verifies— 
(i) whether the activities described in 
the report under subparagraph (A) were 
carried out; and 
(ii) whether any cost savings esti-
mated in the report are accurate. 
(5) COVERED
ACTIVITIES
DEFINED.—In this 
subsection, the term ‘‘covered activities’’ has the 
meaning given that term in section 132a(f) of title 
10, United States Code, as added by subsection (a) 
of this section. 
SEC. 912. AUTHORITIES AND RESPONSIBILITIES OF THE IN-
SPECTOR GENERAL OF THE DEPARTMENT OF 
DEFENSE. 
(a) ADDITIONAL RESPONSIBILITIES AND AUTHORI-
TIES.—Section 141 of title 10, United States Code, is 
amended by adding at the end the following: 
‘‘(c) In addition to the duties, responsibilities, and 
powers referred to in subsection (b), the Inspector General 
of the Department shall serve as the official with principal
621 
equate levels of efficiency and effectiveness achieved 
by the proposed budgets. 
‘‘(2) None of the funds authorized to be appropriated 
or otherwise made available for any fiscal year for the cov-
ered activities of an Inspector General of an organization 
or element of the Department of Defense may be obligated 
or expended unless— 
‘‘(A) the Inspector General of the organization 
or element submits to the Inspector General of the 
Department of Defense a plan for the obligation and 
expenditure of such funds; and 
‘‘(B) the Inspector General of the Department 
of Defense approves the plan. 
‘‘(e) In this section, the term ‘covered activities’ 
means any activity relating to public affairs, human re-
sources, contracting, services contracting, or any other 
cross-enterprise activities of the Inspectors General of the 
organizations and elements of the Department of Defense, 
as determined by the Inspector General of the Depart-
ment.’’. 
(b) STREAMLINING OF FUNCTIONS.—Not later than 
January 1, 2021, the Secretary of Defense, acting through 
the Inspector General of the Department Defense, shall 
reduce or eliminate duplicative functions among the In-
622 
spectors General across all organizations and elements of 
the Department with respect to the covered activities. 
(c) PLAN REQUIRED.—Not later than March 1, 
2020, the Inspector General of the Department of Defense 
shall submit to the congressional defense committees a 
plan for complying with subsection (b). 
(d) COVERED ACTIVITIES DEFINED.—In this section, 
the term ‘‘covered activities’’ has the meaning given that 
term in section 141(e) of title 10, United States Code, 
as added by subsection (a) of this section. 
SEC. 913. TRANSITION OF CERTAIN DEFENSE AGENCIES 
AND DEPARTMENT OF DEFENSE FIELD AC-
TIVITIES. 
(a) DEFENSE INFORMATION SYSTEMS AGENCY.— 
(1) TRANSFER OF FUNCTIONS.—Not later than 
January 1, 2021, the Secretary of Defense, acting 
through the Chief Management Officer of the De-
partment of Defense, shall— 
(A) transfer all information technology 
contracting and acquisition services of the De-
fense Information Systems Agency to other ele-
ments of the Department of Defense, which 
may include the transfer of such services to the 
military departments; and
623 
(B) transfer all senior leader communica-
tions functions of the Agency to other elements 
of the Department of Defense. 
(2) TRANSITION PLAN.—Not later than March 
1, 2020, the Chief Management Officer shall submit 
to the congressional defense committees a plan for 
the transfers required under paragraph (1). 
(b) ELIMINATION OF WASHINGTON HEADQUARTERS 
SERVICES.— 
(1) ELIMINATION REQUIRED.—Not later than 
January 1, 2021, the Secretary of Defense, acting 
through the Chief Management Officer of the De-
partment of Defense, shall eliminate the Washington 
Headquarters Services. 
(2) TRANSFER OR ELIMINATION.— 
(A) TRANSFER.—The Chief Management 
Officer shall transfer to other elements of the 
Office of the Secretary of Defense only such 
functions of the Washington Headquarters 
Services as are necessary to carry out an essen-
tial function not otherwise carried out by such 
Office, as determined by the Chief Management 
Officer. 
(B) ELIMINATION.—Any functions of the 
Washington Headquarters Services that are not
624 
transferred to another element of the Office of 
the Secretary of Defense under subparagraph 
(A) shall be eliminated. 
(3) TRANSFER OR DISPOSITION OF ASSETS.— 
The Chief Management Officer shall dispose of, or 
transfer to other elements of the Office of the Sec-
retary of Defense, any assets of the Washington 
Headquarters Services. 
(4) TRANSITION PLAN.—Not later than March 
1, 2020, the Chief Management Officer shall submit 
to the congressional defense committees a plan for 
the eliminations and transfers required under this 
subsection. 
(c) REVIEW OF DEFENSE AGENCIES AND DEPART-
MENT OF DEFENSE FIELD ACTIVITIES.— 
(1) REVIEW
REQUIRED.—The Chief Manage-
ment Officer of the Department of Defense shall re-
view the efficiency and effectiveness of each Defense 
Agency and Department of Defense Field Activity. 
As part of the review, the Chief Management Officer 
shall identify each function of an Agency or Activity 
that is substantially similar to, or duplicative of, a 
function carried out by another organization or ele-
ment of the Department of Defense.
625 
(2) REPORT.—Not later than March 1, 2020, 
the Chief Management Officer shall submit to the 
congressional defense committees a report that in-
cludes the results of the review conducted under 
paragraph (1). 
(3) CMO 
VERIFICATION
AND
TRANSITION 
PLAN.—Together with the submission of the report 
under paragraph (2) and based on the results of the 
review conducted under paragraph (1), the Chief 
Management Officer shall submit to the congres-
sional defense committees— 
(A) a list identifying each Defense Agency 
and Department of Defense Field Activity that 
the Chief Management Officer has deter-
mined— 
(i) operates efficiently and effectively; 
and 
(ii) does not carry out any function 
that is substantially similar to, or duplica-
tive of, a function carried out by another 
organization or element of the Department 
of Defense; and 
(B) with respect to each Agency or Activity 
not included on the list under subparagraph 
(A), a plan for—
626 
(i) eliminating the Agency or Activity; 
or 
(ii) transferring some or all of the 
functions of the Agency or Activity to an-
other organization or element of the De-
partment of Defense. 
(d) CLARIFICATION OF AUTHORITIES OF THE SEC-
RETARY OF DEFENSE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary of Defense shall have the 
authority to establish or terminate any Defense 
Agency or Department of Defense Field Activity. 
(2) EXCEPTIONS.—The authority of the Sec-
retary of Defense to establish or terminate a De-
fense Agency or Department of Defense Field Activ-
ity under paragraph (1) does not apply to an Agency 
or Activity that is specifically established or termi-
nated by an Act of Congress. 
(3) REFERENCES.—Any reference in Federal 
law, regulations, guidance, instructions, or other 
documents of the Federal Government to a Defense 
Agency or Department of Defense Field Activity ter-
minated by the Secretary of Defense under para-
graph (1), or to the head of such an Agency or Ac-
627 
tivity, shall be deemed to be a reference to the Sec-
retary of Defense. 
(4) NOTICE REQUIREMENT.—The Secretary of 
Defense may not terminate a Defense Agency or De-
partment of Defense Field Activity until a period of 
90 days has elapsed following the date on which the 
Secretary submits to the congressional defense com-
mittees— 
(A) notice of the intent of the Secretary to 
terminate the Agency or Activity; and 
(B) recommendations for legislative actions 
that may be required as a result of such termi-
nation. 
SEC. 914. ACTIONS TO INCREASE THE EFFICIENCY AND 
TRANSPARENCY OF THE DEFENSE LOGISTICS 
AGENCY. 
(a) SYSTEM AND CAPABILITY.—Not later than Janu-
ary 1, 2021, the Director of the Defense Logistics Agency 
and the Chief Management Officer of the Department of 
Defense shall jointly, in consultation with the customers 
served by the Agency, develop and implement— 
(1) a comprehensive system that enables cus-
tomers of the Agency to view— 
(A) the inventory of items and materials 
available to customers from the Agency; and
628 
(B) the delivery status of items and mate-
rials that are in transit to customers; and 
(2) a predictive analytics capability designed to 
increase the efficiency of the system described in 
paragraph (1) by identifying emerging customer 
needs with respect to items and materials supplied 
by the Agency, including any emerging needs arising 
from the use of new weapon systems by customers. 
(b) ACTIONS TO INCREASE EFFICIENCY.—Not later 
than January 1, 2021, the Director of the Defense Logis-
tics Agency and the Chief Management Officer shall joint-
ly— 
(1) reduce the rates charged to customers, in 
aggregate, by not less than 10 percent; 
(2) eliminate the duplication of services within 
the Agency; and 
(3) establish specific goals and metrics to en-
sure that the Agency is fulfilling its mission of pro-
viding items and materials to customers with suffi-
cient speed and in sufficient quantities to ensure the 
lethality and readiness of warfighters. 
(c) PLAN REQUIRED.—Not later than March 1, 
2020, the Director of the Defense Logistics Agency and 
the Chief Management Officer shall jointly submit to the 
congressional defense committees a plan that describes
629 
how the Director and the Chief Management Officer will 
achieve compliance with the requirements of subsections 
(a) and (b). 
SEC. 915. REVIEW OF FUNCTIONS OF DEFENSE CONTRACT 
AUDIT AGENCY AND DEFENSE CONTRACT 
MANAGEMENT AGENCY. 
(a) REVIEW REQUIRED.—The Secretary of Defense, 
acting through the Chief Management Officer of the De-
partment of Defense, shall direct the Under Secretary of 
Defense for Acquisition and Sustainment and the Under 
Secretary of Defense (Comptroller) to conduct a joint re-
view of the functions of the Defense Contract Audit Agen-
cy and the Defense Contract Management Agency. The 
review shall include— 
(1) a validation of the missions and functions of 
each Agency; 
(2) a determination of whether there are func-
tions performed by either Agency that could more 
appropriately be performed by— 
(A) the other Agency; 
(B) any other organization or element of 
the Department of Defense, including the mili-
tary departments; or 
(C) commercial providers; and
630 
(3) a validation of the continued need for two 
separate Agencies with oversight for defense con-
tracting. 
(b) REPORT REQUIRED.—Not later than March 1, 
2020, the Secretary of Defense shall submit to the con-
gressional defense committees a report that includes the 
results of the review conducted under subsection (a). 
SEC. 916. STREAMLINING OF DEFENSE FINANCE AND AC-
COUNTING SERVICES. 
(a) IN GENERAL.—Not later than January 1, 2021, 
the Chief Management Officer and the Under Secretary 
of Defense (Comptroller) shall jointly carry out activities 
to streamline, reduce duplication, and make more effective 
the operations of the Defense Finance and Accounting 
Services. 
(b) PLAN REQUIRED.— Not later than March 1, 
2020, the Chief Management Officer and the Under Sec-
retary of Defense (Comptroller) shall jointly submit to the 
congressional defense committees a plan for carrying out 
the activities required under subsection (a). 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to encourage or require the termi-
nation of any personnel or positions within the Defense 
Finance and Accounting Services.
631 
SEC. 917. REDUCTION IN NUMBER OF CHIEF INFORMATION 
OFFICERS IN THE SENIOR EXECUTIVE SERV-
ICE. 
With respect to the total number of Chief Informa-
tion Officer positions within the Department of Defense, 
during calendar year 2021 and each year thereafter not 
more than five of such positions may be Senior Executive 
Service positions (as that term is described in section 
3132(a)(2) of title 5, United States Code). 
SEC. 918. GENERAL PROVISIONS. 
(a) CONSOLIDATED REPORT.—The plans and reports 
required to be submitted to the congressional defense com-
mittees under this subtitle on or before March 1, 2020, 
may be combined and submitted in the form of a single, 
consolidated document. 
(b) DEFINITIONS.—In this subtitle: 
(1) The term ‘‘Chief Management Officer’’ 
means the Chief Management Officer of the Depart-
ment of Defense. 
(2) The terms ‘‘Defense Agency’’, ‘‘Department 
of Defense Field Activity’’, and ‘‘military depart-
ments’’ have the meanings given the terms in section 
101(a) of title 10, United States Code. 
(c) CONFORMING AMENDMENT.—Section 143(b) of 
title 10, United States Code, is amended by striking ‘‘and
632 
the Washington Headquarters Services of the Department 
of Defense’’. 
(d) EFFECTIVE DATE.—The amendment made by 
subsection (c) shall take effect on the earlier of— 
(1) the date on which the Washington Head-
quarters Services is eliminated under section 913; or 
(2) January 1, 2021. 
Subtitle C—Other Matters 
SEC. 
921. 
ARTIFICIAL 
INTELLIGENCE 
AND 
MACHINE 
LEARNING POLICY AND OVERSIGHT COUN-
CIL. 
(a) ESTABLISHMENT.—In order to fulfill the respon-
sibilities specified in Section 133a of title 10, United 
States Code, the Under Secretary of Defense for Research 
and Engineering shall establish and lead a team to be 
known as the ‘‘Artificial Intelligence and Machine Learn-
ing Policy and Oversight Council’’ (in this section referred 
to as the ‘‘Council’’). 
(b) PURPOSE.—The purpose of the Council shall be 
to— 
(1) integrate the functional activities of the or-
ganizations and elements of the Department of De-
fense with respect to artificial intelligence and ma-
chine learning;
633 
(2) ensure there are efficient and effective arti-
ficial intelligence and machine learning capabilities 
throughout Department; and 
(3) develop and continuously improve research, 
innovation, policy, joint processes, and procedures to 
facilitate the development, acquisition, integration, 
advancement, oversight, and sustainment of artificial 
intelligence and machine learning throughout the 
Department. 
(c) MEMBERSHIP.—The membership of the Council 
shall include the following: 
(1) The Under Secretary of Defense for Re-
search and Engineering, or the designee of the 
Under Secretary, who shall serve as the leader of the 
Council. 
(2) The following officials of the Department of 
Defense, or their designees: 
(A) The Under Secretary of Defense for 
Acquisition and Sustainment. 
(B) The Chief Management Officer of the 
Department of Defense. 
(C) The Under Secretary of Defense 
(Comptroller). 
(D) The Under Secretary of Defense for 
Personnel and Readiness.
634 
(E) The Under Secretary of Defense for 
Intelligence. 
(F) The General Counsel of the Depart-
ment of Defense. 
(G) The head of each military service. 
(H) The Commander of the United States 
Special Operations Command. 
(I) The Director of the Defense Advanced 
Research Projects Agency. 
(3) Any other official of the Department of De-
fense determined to be appropriate by the Under 
Secretary of Defense for Research and Engineering. 
(d) OPERATION.—The Council shall operate continu-
ously. 
SEC. 922. LIMITATION ON TRANSFER OF THE CHEMICAL, 
BIOLOGICAL, AND RADIOLOGICAL DEFENSE 
DIVISION OF THE NAVY. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The Chemical, Biological, and Radiological 
Defense Division of the Navy, currently based at the 
Naval Surface Warfare Center in Dahlgren, Vir-
ginia, consists of a highly effective team of scientists 
performing critical work for the United States.
635 
(2) The Secretary of the Navy has notified Con-
gress of the intent of the Secretary to transfer the 
Division to another location. 
(3) The Secretary has not provided Congress 
with a detailed cost benefit analysis or any other in-
formation that adequately justifies the proposed 
transfer of the Division. 
(b) REPORT REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of the Navy shall submit to the congressional defense com-
mittees a report that includes— 
(1) a detailed timeline for the proposed transfer 
of the Chemical, Biological, and Radiological De-
fense Division of the Navy from Virginia to another 
location; 
(2) a full accounting of the costs associated 
with the proposed transfer, including— 
(A) all personnel costs; 
(B) all equipment costs; and 
(C) all facility renovation costs for the ex-
isting facilities of the Division and the facilities 
to which the Division is proposed to be trans-
ferred; 
(3) a risk assessment of the operational impact 
of the transfer during the transition period; and
636 
(4) an explanation of the operational benefit ex-
pected to be achieved by collocating all Chemical, Bi-
ological, and Radiological elements of the Depart-
ment of the Navy. 
(c) LIMITATION.—The Secretary of the Navy may not 
transfer, or prepare to transfer, the Chemical, Biological, 
and Radiological Defense Division of the Navy from Dahl-
gren, Virginia to another location until a period of 45 days 
has elapsed following the date on which the report is sub-
mitted to the congressional defense committees under sub-
section (b). 
SEC. 923. REVIEW OF FOREIGN CURRENCY EXCHANGE 
RATES AND ANALYSIS OF FOREIGN CUR-
RENCY FLUCTUATIONS APPROPRIATION. 
With respect to a contract for goods and services paid 
for with foreign currency, the Under Secretary of Defense 
(Comptroller), in coordination with each Secretary of a 
military department, shall conduct a review of the ex-
change rate for such foreign currency used when making 
a disbursement pursuant to such a contract to determine 
whether cost-savings opportunities exist by more consist-
ently selecting cost-effective rates. Such review shall in-
clude an analysis of realized and projected losses to deter-
mine the necessary balance of the appropriation ‘‘Foreign 
Currency Fluctuations, Defense’’. The Secretary of De-
637 
fense may use the results of such analysis to determine 
the amount of any transfers to the appropriation ‘‘Foreign 
Currency Fluctuations, Defense’’. 
Subtitle D—Designation of the 
Navy and Marine Corps 
SEC. 931. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF MILITARY DEPARTMENT.— 
The military department designated as the Department of 
the Navy is redesignated as the Department of the Navy 
and Marine Corps. 
(b) REDESIGNATION
OF SECRETARY
AND OTHER 
STATUTORY OFFICES.— 
(1) SECRETARY.—The position of the Secretary 
of the Navy is redesignated as the Secretary of the 
Navy and Marine Corps. 
(2) OTHER
STATUTORY
OFFICES.—The posi-
tions of the Under Secretary of the Navy, the four 
Assistant Secretaries of the Navy, and the General 
Counsel of the Department of the Navy are redesig-
nated as the Under Secretary of the Navy and Ma-
rine Corps, the Assistant Secretaries of the Navy 
and Marine Corps, and the General Counsel of the
638 
Department of the Navy and Marine Corps, respec-
tively. 
SEC. 932. CONFORMING AMENDMENTS TO TITLE 10, UNITED 
STATES CODE. 
(a) DEFINITION OF ‘‘MILITARY DEPARTMENT’’.— 
Paragraph (8) of section 101(a) of title 10, United States 
Code, is amended to read as follows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(b) ORGANIZATION OF DEPARTMENT.—The text of 
section 5011 of such title is amended to read as follows: 
‘‘The Department of the Navy and Marine Corps is sepa-
rately organized under the Secretary of the Navy and Ma-
rine Corps.’’. 
(c) POSITION OF SECRETARY.—Section 5013(a)(1) of 
such title is amended by striking ‘‘There is a Secretary 
of the Navy’’ and inserting ‘‘There is a Secretary of the 
Navy and Marine Corps’’. 
(d) CHAPTER HEADINGS.— 
(1) The heading of chapter 503 of such title is 
amended to read as follows:
639 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(2) The heading of chapter 507 of such title is 
amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(e) OTHER AMENDMENTS.— 
(1) Title 10, United States Code, is amended by 
striking ‘‘Department of the Navy’’ and ‘‘Secretary 
of the Navy’’ each place they appear other than as 
specified in subsections (a), (b), (c), and (d) (includ-
ing in section headings, subsection captions, tables 
of chapters, and tables of sections) and inserting 
‘‘Department of the Navy and Marine Corps’’ and 
‘‘Secretary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to be in 
the same typeface and typestyle as the matter strick-
en. 
(2)(A) Sections 5013(f), 5014(b)(2), 5016(a), 
5017(2), 5032(a), and 5042(a) of such title are 
amended by striking ‘‘Assistant Secretaries of the 
Navy’’ and inserting ‘‘Assistant Secretaries of the 
Navy and Marine Corps’’.
640 
(B) The heading of section 5016 of such title, 
and the item relating to such section in the table of 
sections at the beginning of chapter 503 of such 
title, are each amended by inserting ‘‘and Marine 
Corps’’ after ‘‘of the Navy’’, with the matter in-
serted in each case to be in the same typeface and 
typestyle as the matter amended. 
SEC. 933. OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES. 
(a) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘Department 
of the Navy’’ and ‘‘Secretary of the Navy’’ each place they 
appear and inserting ‘‘Department of the Navy and Ma-
rine Corps’’ and ‘‘Secretary of the Navy and Marine 
Corps’’, respectively. 
(b) OTHER REFERENCES.—Any reference in any law 
other than in title 10 or title 37, United States Code, or 
in any regulation, document, record, or other paper of the 
United States, to the Department of the Navy shall be 
considered to be a reference to the Department of the 
Navy and Marine Corps. Any such reference to an office 
specified in section 931(b) shall be considered to be a ref-
erence to that officer as redesignated by that section.
641 
SEC. 934. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on the first day of the first month 
beginning more than 60 days after the date of the enact-
ment of this Act. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
2019 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and 
be available for the same purposes as the authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $5,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
642 
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by sub-
section (a) to transfer authorizations— 
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. EXPERTISE IN AUDIT REMEDIATION. 
(a) FINDINGS.—Congress finds the following: 
(1) The ongoing efforts to produce auditable fi-
nancial statements for the Department of Defense, 
its agencies, and the military services enhance readi-
643 
ness and accountability by ensuring effective stew-
ardship of taxpayer resources. 
(2) The transition from audit readiness to audit 
performance and remediation are critical phases, de-
manding expertise from accounting firms and finan-
cial management professionals to ensure that the 
Department successfully addresses issues identified 
in an audit. 
(3) Support from the private sector enhances 
the ability of the Department to conduct audit and 
remediation activities, and will enable the Depart-
ment to achieve its strategic objective of improving 
business practices with efficiency and accountability. 
(b) ADDITIONAL REQUIREMENTS FOR SEMIANNUAL 
BRIEFING ON THE FINANCIAL IMPROVEMENT AND AUDIT 
REMEDIATION PLAN.—Section 252(b)(2) of title 10, 
United States Code, is amended by adding at the end the 
following new sentence: ‘‘Such briefing shall include the 
amount of auditing and audit remediation services being 
performed by professionals meeting the qualifications de-
scribed in section 254(b) of this title, both as an absolute 
number and as a percentage of auditing and audit remedi-
ation services then under contract.’’. 
(c) ADDITIONAL REPORTING REQUIREMENTS.—Sec-
tion 252(b)(1) of such title is amended—
644 
(1) in subparagraph (B), by adding at the end 
the following new clauses: 
‘‘(vii) If less than 50 percent of the 
auditing and audit remediation services 
under contract, as described in the briefing 
required under paragraph (2), are being 
performed by professionals meeting the 
qualifications described in section 254(b) 
of this title, a detailed description of the 
risks associated with the risks of the acqui-
sition strategy of the Department with re-
spect to conducting audits and audit reme-
diation activities and an explanation of 
how the strategy complies with the policies 
expressed by Congress. 
‘‘(viii) If less than 25 percent of the 
auditing and audit remediation services 
under contract, as described in the briefing 
required under paragraph (2), are being 
performed by professionals meeting the 
qualifications described in section 254(b) 
of this title, a written certification that the 
staffing ratio complies with commercial 
best practices and presents no increased
645 
risk of delay in the Department’s ability to 
achieve a clean audit opinion’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(C) ADDITIONAL REQUIREMENTS.— 
‘‘(i) UNCLASSIFIED
FORM.—A de-
scription submitted pursuant to clause (vii) 
of subparagraph (B) or a certification sub-
mitted pursuant to clause (viii) of such 
subparagraph shall be submitted in unclas-
sified form, but may contain a classified 
annex. 
‘‘(ii) DELEGATION.—The Secretary 
may not delegate the submission of a cer-
tification pursuant to clause (viii) of sub-
paragraph (B) to any official other than 
the Deputy Secretary of Defense, the Chief 
Management Officer, or the Under Sec-
retary of Defense (Comptroller).’’. 
SEC. 1003. AUTHORITY TO TRANSFER FUNDS TO DIRECTOR 
OF NATIONAL INTELLIGENCE FOR CAPNET. 
During fiscal year 2019, the Secretary of Defense 
may transfer to the Director of National Intelligence, 
under the authority in section 1001 of this Act, an amount 
that does not exceed $2,000,000 to provide support for
646 
the operation of the classified network known as 
CAPNET. 
SEC. 1004. INDEPENDENT PUBLIC ACCOUNTANT AUDIT OF 
FINANCIAL SYSTEMS OF THE DEPARTMENT 
OF DEFENSE. 
The Secretary of Defense shall ensure that each 
major implementation of, or modification to, a business 
system that contributes to financial information of the De-
partment of Defense is reviewed by an independent public 
accountant to validate that such financial system will meet 
any applicable Federal requirements. 
SEC. 1005. REPORT ON AUDITABLE FINANCIAL STATE-
MENTS. 
Not later than 30 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report ranking 
all military departments and Defense Agencies in order 
of how advanced they are in achieving auditable financial 
statements as required by law. The report should not in-
clude information otherwise available in other reports to 
Congress. 
Subtitle B—Counterdrug Activities 
SEC. 1011. DEPARTMENT OF DEFENSE SUPPORT FOR COM-
BATING OPIOID TRAFFICKING AND ABUSE. 
(a) FINDINGS; SENSE OF CONGRESS.—
647 
(1) FINDINGS.—Congress makes the following 
findings: 
(A) Over the past 15 years, opioid use in 
the United States has grown exponentially. 
(B) According to the Office of National 
Drug Control Policy, the number of deaths re-
lated to opioids in the United States in 2016 
was 42,269. 
(C) Addiction and misuse of prescription 
opioids continues to rise. According to the Of-
fice of National Drug Control Policy, in 2016, 
11,500,000 people misused prescription opioids. 
(D) The predominant amount of precur-
sors for fentanyl production are illicitly traf-
ficked from China. 
(E) The Office of National Drug Control 
Policy is the lead agency for coordinating the 
Federal response to address the opioid epidemic 
in the United States. 
(F) The Department of Homeland Security 
is the lead Federal agency in securing United 
States borders from illicit trafficking. 
(G) The Department of Defense plays a 
vital supporting role in addressing the opioid 
epidemic through intelligence analysis, edu-
648 
cation, and assistance to other departments and 
agencies in dealing with this challenge. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that— 
(A) the Department of Defense should pro-
vide support for interagency efforts to combat 
the national opioid epidemic; and 
(B) the role of the Department of Defense 
is critical to identifying transnational criminal 
organizations that allow illicit opioids to enter 
the United States. 
(b) DEPARTMENT OF DEFENSE SUPPORT FOR COM-
BATING OPIOID TRAFFICKING AND ABUSE.—Of the funds 
authorized to be appropriated by this Act or otherwise 
made available to the Department of Defense for National 
Guard counterdrug programs for fiscal year 2019, 
$20,000,000 shall be made available to provide support 
for United States interagency efforts to combat opioid 
trafficking and abuse in the United States, as specified 
in the funding table in division G.
649 
Subtitle C—Naval Vessels and 
Shipyards 
SEC. 1021. INCLUSION OF OPERATION AND SUSTAINMENT 
COSTS IN ANNUAL NAVAL VESSEL CON-
STRUCTION PLANS. 
Section 231(b)(2) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(F) The estimated operations and sustainment 
costs required to support the vessels delivered under 
the naval vessel construction plan.’’. 
SEC. 1022. PURCHASE OF VESSELS USING FUNDS IN NA-
TIONAL DEFENSE SEALIFT FUND. 
(a) IN GENERAL.—Section 2218(f)(3) of title 10, 
United States Code, is amended— 
(1) in subparagraph (C)— 
(A) by striking ‘‘two’’ and inserting ‘‘ten’’; 
and 
(B) by striking ‘‘ships’’ and inserting ‘‘ves-
sels’’; 
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(3) by inserting after subparagraph (D) the fol-
lowing new subparagraph (E):
650 
‘‘(E) The Secretary may not use the authority under 
this paragraph to procure more than two foreign con-
structed vessels unless the Secretary submits to Congress, 
by not later than the second week of February of the fiscal 
year during which the Secretary plans to use such author-
ity, a certification that— 
‘‘(i) the Secretary has initiated an acquisition 
strategy for the construction in United States ship-
yards of not less than ten new sealift vessels pur-
chased with funds in the National Defense Sealift 
Fund; and 
‘‘(ii) of such new sealift vessels, the lead ship 
is anticipated to be delivered by not later than 
2026.’’. 
(b) LIMITATION
ON
USE
OF
FUNDS.—Of the 
amounts authorized to be appropriated or otherwise made 
available by this Act for fiscal year 2019 for the Military 
Sealift Command, the Secretary of the Navy may not obli-
gate or expend more than 75 percent until the Secretary 
submits to the congressional defense committees certifi-
cation that the Navy has— 
(1) entered into a contract for the procurement 
of two used National Defense Reserve Fleet vessels 
in accordance with section 2218(f)(3)(C) of title 10, 
United States Code; and
651 
(2) completed the capability development docu-
ment for the common hull multi-mission platform. 
SEC. 1023. PURCHASE OF VESSELS BUILT IN FOREIGN SHIP-
YARDS WITH FUNDS IN NATIONAL DEFENSE 
SEALIFT FUND. 
Section 2218(f)(3) of title 10, United States Code, 
as amended by section 1022, is further amended— 
(1) in subparagraph (F), as redesignated by 
such section 1022— 
(A) by striking ‘‘30 days after’’ and insert-
ing ‘‘30 days before’’; 
(B) in clause (i), by inserting ‘‘proposed’’ 
before ‘‘date’’; 
(C) in clause (ii), by striking ‘‘was’’ and 
inserting ‘‘would be’’; and 
(D) by adding at the end the following new 
clause: 
‘‘(viii) A detailed account of the criteria used to 
make the determination under subparagraph (B).’’; 
and 
(2) by inserting after subparagraph (F), as so 
redesignated, the following new subparagraph: 
‘‘(G) The Secretary may not finalize or execute the 
final purchase of any vessel using the authority under this 
paragraph until 30 days after the date on which a report
665 
(1) in subparagraph (A), by striking ‘‘during 
the transition program’’ and inserting ‘‘during the 
period beginning on the transition program effective 
date and ending on the later of September 30, 2020, 
or the last day of the transition period’’; 
(2) by amending subparagraph (B) to read as 
follows: 
‘‘(B) H-2B WORKERS.—In the case of an 
alien described in subparagraph (A) who seeks 
admission under section 101(a)(15)(H)(ii)(b) of 
the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)(ii)(b)), the alien, if otherwise 
qualified, may, before the later of December 31, 
2023, or the last day of the transition period, 
be admitted under such section, notwith-
standing the requirement of such section that 
the service or labor be temporary, for a period 
of up to 3 years— 
‘‘(i) to perform service or labor on 
Guam or in the Commonwealth pursuant 
to any agreement entered into by a prime 
contractor or subcontractor calling for 
services or labor required for performance 
of a contact or subcontract for construc-
tion, repairs, renovations, or facility serv-