Title: Defense Acquisition Streamlining and Transparency Act
Policy area: Armed Forces and National Security

Summary:
Defense Acquisition Streamlining and Transparency Act
This bill directs the Department of Defense (DOD) to establish a program to procure commercial off-the-shelf products through online marketplaces to expedite procurement and ensure reasonable pricing. A contract may be made without full and open competition.
DOD shall comply with commercially accepted standards of risk and materiality in performing an incurred cost audit.
DOD shall emphasize sustainment factors: (1) early in a weapon system's development, and (2) in the development of capabilities requirements.
A weapon system contract shall include clearly defined requirements for reliability and maintainability.
DOD shall establish: (1) contract performance best practices, which shall include incentive fees and recovery options; and (2) an investment program for funding weapon system design changes.
DOD shall negotiate the price of technical data before selecting a contractor for the development or production of a major weapon system.
The bill establishes an Office of Intellectual Property within the Office of the Under Secretary of Defense for Acquisition and Sustainment.
DOD shall ensure that: (1) sufficient data is collected and evaluated in support of a services contract, and (2) certain funding requirements are displayed separately for major defense acquisition programs.
DOD shall evaluate its strategy for developing and expanding the use of tools designed to facilitate the cost effectiveness and efficiency of developmental testing.
DOD shall: (1) implement a program to develop civil program managers for major defense acquisition programs, and (2) contract with an independent research entity to carry out a study of financial incentives for such managers.
The DOD acquisition workforce demonstration project is extended through December 31, 2023.
The defense business enterprise architecture shall include one or more common enterprise data structures to facilitate DOD-wide analysis.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2511 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2511

 To amend title 10, United States Code, to streamline the acquisition 
 system, invest early in acquisition programs, improve the acquisition 
     workforce, and improve transparency in the acquisition system.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2017

Mr. Thornberry introduced the following bill; which was referred to the 
   Committee on Armed Services, and in addition to the Committee on 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend title 10, United States Code, to streamline the acquisition 
 system, invest early in acquisition programs, improve the acquisition 
     workforce, and improve transparency in the acquisition system.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Defense 
Acquisition Streamlining and Transparency Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
                TITLE I--ACQUISITION SYSTEM STREAMLINING

Sec. 101. Procurement through online marketplaces.
Sec. 102. Performance of incurred cost audits.
Sec. 103. Modifications to cost or pricing data and reporting 
                            requirements.
          TITLE II--EARLY INVESTMENTS IN ACQUISITION PROGRAMS

Sec. 201. Requirement to emphasize reliability and maintainability in 
                            weapon system design.
Sec. 202. Licensing of appropriate intellectual property to support 
                            major weapon systems.
Sec. 203. Management of intellectual property matters within the 
                            Department of Defense.
Sec. 204. Improvement of planning for acquisition of services.
Sec. 205. Improvements to test and evaluation processes and tools.
             TITLE III--ACQUISITION WORKFORCE IMPROVEMENTS

Sec. 301. Enhancements to the civilian program management workforce.
Sec. 302. Improvements to the hiring and training of the acquisition 
                            workforce.
Sec. 303. Extension and modifications to acquisition demonstration 
                            project.
Sec. 304. Acquisition positions in the Offices of the Secretaries of 
                            the military departments.
                  TITLE IV--TRANSPARENCY IMPROVEMENTS

Sec. 401. Transparency of defense business system data.
Sec. 402. Major defense acquisition programs: display of budget 
                            information.
Sec. 403. Enhancements to transparency in test and evaluation processes 
                            and data.

                TITLE I--ACQUISITION SYSTEM STREAMLINING

SEC. 101. PROCUREMENT THROUGH ONLINE MARKETPLACES.

    (a) Establishment of Program.--The Secretary of Defense shall 
establish a program to procure commercial products through online 
marketplaces for purposes of expediting procurement and ensuring 
reasonable pricing of commercial products. The Secretary shall carry 
out the program in accordance with this section, through one or more 
contracts with one or more online marketplace providers, and shall 
design the program to enable Department of Defense-wide use of such 
marketplaces.
    (b) Criteria for Online Marketplaces.--The Secretary shall ensure 
that an online marketplace used under the program established pursuant 
to subsection (a)--
            (1) is used widely in the private sector, including in 
        business-to-business e-commerce;
            (2) provides dynamic selection, in which suppliers and 
        products may be frequently updated, and dynamic pricing, in 
        which suppliers may frequently update product prices;
            (3) enables offers from multiple suppliers on the same or 
        similar products to be sorted or filtered based on product and 
        shipping price, delivery date, and reviews of suppliers or 
        products;
            (4) does not feature or prioritize a product of a supplier 
        based on any compensation or fee paid to the online marketplace 
        by the supplier that is exclusively for such featuring or 
        prioritization on the online marketplace;
            (5) provides procurement oversight controls, including 
        spending limits, order approval, and order tracking;
            (6) provides consolidated invoicing, payment, and customer 
        service functions on behalf of all suppliers;
            (7) satisfies requirements for supplier and product 
        screening in subsection (c); and
            (8) collects information necessary to fulfill the 
        information requirements in subsection (g).
    (c) Supplier and Product Screening.--The Secretary shall--
            (1) provide or ensure electronic availability to an online 
        marketplace provider awarded a contract pursuant to subsection 
        (a), no less frequently than the first day of each month--
                    (A) the list of suspended and debarred contractors 
                contained in the System of Award Management maintained 
                by the General Services Administration;
                    (B) a list of suppliers, by product category, that 
                satisfy the requirements of section 2533a or 2533b of 
                title 10, United States Code; and
                    (C) a list of products, by supplier, that are 
                suitable for the Federal Government to procure pursuant 
                to section 8503 of title 41, United States Code; and
            (2) ensure that an online marketplace used under the 
        program established pursuant to subsection (a) provides the 
        ability to search suppliers and products and identify such 
        suppliers and products as authorized or not authorized for 
        purchase during the procurement and order approval process 
        based on the most recent lists provided pursuant to paragraph 
        (1).
    (d) Relationship to Other Provisions of Law.--Notwithstanding any 
other provision of law, a procurement of a product made through an 
online marketplace under the program established pursuant to subsection 
(a)--
            (1) is deemed to satisfy requirements for full and open 
        competition pursuant to section 2304 of title 10, United States 
        Code, and section 3301 of title 41, United States Code, if 
        there are offers from two or more suppliers of such a product 
        on the online marketplace;
            (2) is deemed to be a procurement of a commercial product 
        if the product has been purchased within the previous year by a 
        non-Government entity through the online marketplace; and
            (3) is deemed to be an award of a prime contract for 
        purposes of the Governmentwide goals established under section 
        15(g) of the Small Business Act (15 U.S.C. 644(g)), if the 
        purchase is from a supplier that is a small business concern 
        (as defined under section 3 of the Small Business Act (15 
        U.S.C. 632)).
    (e) Requirement To Use Standard Terms and Conditions of Online 
Marketplaces.--Notwithstanding any other provision of law, a 
procurement of a product through a commercial online marketplace used 
under the program established pursuant to subsection (a) shall be made 
under the standard terms and conditions of the marketplace relating to 
purchasing on the marketplace, and the Secretary shall not require an 
online marketplace to modify its standard terms and conditions as a 
condition of receiving a contract pursuant to subsection (a).
    (f) Procedures for Award of Contract.--Notwithstanding section 2304 
of title 10, United States Code, or any other provision of law, the 
award of a contract to an online marketplace provider pursuant to 
subsection (a) may be made without the use of full and open 
competition.
    (g) Order Information.--
            (1) In general.--The Secretary of Defense shall require 
        each online marketplace provider awarded a contract pursuant to 
        subsection (a) to provide to the Department of Defense, not 
        less frequently than the first day of each month, the ability 
        to electronically access the following information with respect 
        to each product ordered during the preceding month:
                    (A) The product name and description.
                    (B) The date and time of the order.
                    (C) The product price.
                    (D) The Department of Defense purchaser and, if 
                appropriate, the official who authorized the purchase.
                    (E) The delivery address specified in the order for 
                the product.
                    (F) The number of suppliers that offered the same 
                product on the same date and time that the product was 
                ordered.
            (2) Data system.--The Secretary shall ensure that order 
        information listed in paragraph (1) is entered into the Federal 
        Procurement Data System described in section 1122 of title 41, 
        United States Code.
    (h) Limitation on Information Disclosure.--In any contract awarded 
to an online marketplace provider pursuant to subsection (a), the 
Secretary of Defense shall require that the provider agree not to sell 
or otherwise make available to any third party any of the information 
listed in subsection (g)(1) in a manner that identifies the Federal 
Government, or any of its departments or agencies, as the purchaser, 
except with written consent of the Secretary.
    (i) Definitions.--In this section:
            (1) Online marketplace provider.--The term ``online 
        marketplace provider'' means a commercial, non-Government 
        entity providing an online portal for the purchase of 
        commercial products. The term does not include an online portal 
        managed by the Government for, or predominantly for use by, 
        Government agencies.
            (2) Commercial product.--The term ``commercial product'' 
        means a commercially available off-the-shelf item, as defined 
        in section 104 of title 41, United States Code, except the term 
        does not include services.

SEC. 102. PERFORMANCE OF INCURRED COST AUDITS.

    (a) In General.--
            (1) Performance of incurred cost audits.--Chapter 137 of 
        title 10, United States Code, is amended by inserting after 
        section 2313a the following new section:
``Sec. 2313b. Performance of incurred cost audits
    ``(a) Compliance With Standards of Risk and Materiality.--For 
purposes of performing an incurred cost audit of costs associated with 
a contract of the Department of Defense, the Secretary of Defense shall 
comply with commercially accepted standards of risk and materiality.
    ``(b) Audits of Indirect Costs.--Notwithstanding any other 
provision of law, a contractor of the Department of Defense may 
present, and the Secretary of Defense shall accept without performing 
additional audits or reviews, a summary of audit findings on indirect 
costs of the contractor that were prepared by a commercial auditor if--
            ``(1) the contractor does not have a predominance of cost-
        type contracts as a percentage of sales;
            ``(2) the commercial auditor previously performed an audit 
        of the allowability, measurement, assignment to accounting 
        periods, and allocation of indirect costs of the contractor; 
        and
            ``(3) such audit was performed using relevant commercial 
        accounting standards (such as Generally Accepted Accounting 
        Principles) established by the commercial auditing industry for 
        the relevant accounting period.
    ``(c) Selection of Auditing Entity To Perform Incurred Cost 
Audits.--(1) For an incurred cost audit of a contract of the Department 
of Defense for which an indirect cost audit has not been performed 
pursuant to subsection (b), the Defense Contract Management Agency or a 
contract administration office of a military department shall have the 
authority to select the Defense Contract Audit Agency or a qualified 
private auditor to perform an incurred cost audit, based upon 
guidelines that--
            ``(A) are issued by an audit planning committee that is 
        comprised of one representative from each of the office of the 
        Under Secretary of Defense for Acquisition and Sustainment, the 
        Defense Contract Management Agency, a contract administration 
        office of a military department, and the Defense Contract Audit 
        Agency;
            ``(B) ensures that, after September 1, 2020, not less than 
        25 percent of incurred costs are audited by qualified private 
        auditors; and
            ``(C) ensures that multi-year auditing is conducted only to 
        address any backlog of incurred cost audits of the Defense 
        Contract Audit Agency in existence on the date of the enactment 
        of this section.
    ``(2)(A) Not later than September 1, 2020, the Secretary of Defense 
shall award an indefinite delivery-indefinite quantity task order 
contract to two or more qualified private auditors to perform incurred 
cost audits of costs associated with contracts of the Department of 
Defense.
    ``(B) The Defense Contract Management Agency, a contract 
administration office of a military department, or the Defense Contract 
Audit Agency may issue a task order to perform an incurred cost audit 
to a qualified private auditor under a task order contract awarded 
under subparagraph (A). Such task order may be issued only to a 
qualified private auditor that certifies that the qualified private 
auditor has no conflict of interest in performing such an audit.
    ``(C) The Defense Contract Audit Agency may not conduct further 
audit or review of an incurred cost audit performed by a qualified 
private auditor pursuant to this section.
    ``(3)(A) Effective September 1, 2022, the Defense Contract Audit 
Agency may issue unqualified audit findings for an incurred cost audit 
only if the Defense Contract Audit Agency is peer reviewed by a 
commercial auditor and passes such peer review.
    ``(B) The peer review referred to in subparagraph (A) shall occur 
not less frequently than once every three years.
    ``(4) The Secretary of Defense shall consider the results of an 
incurred cost audit performed under this section without regard to 
whether the Defense Contract Audit Agency or a qualified private 
auditor performed the audit.
    ``(5) The contracting officer for a contract that is the subject of 
an incurred cost audit shall have the sole discretion to accept or 
reject an audit finding on direct costs of the contract.
    ``(d) Materiality Standards for Incurred Cost Audits.--(1) Not 
later than September 1, 2020, and except as provided in paragraph (2), 
the minimum materiality standard used by an auditor shall--
                    ``(A) for an incurred cost audit of costs in an 
                amount less than or equal to $100,000, be 4 percent of 
                such costs;
                    ``(B) for an incurred cost audit of costs in an 
                amount greater than $100,000 but less than $500,000, be 
                $2,000 plus 2 percent of such costs;
                    ``(C) for an incurred cost audit of costs in an 
                amount greater than $500,000 but less than $1,000,000, 
                be $5,000 plus 1 percent of such costs;
                    ``(D) for an incurred cost audit of costs in an 
                amount greater than $1,000,000 but less than 
                $5,000,000, be $8,000 plus 0.9 percent of such costs;
                    ``(E) for an incurred cost audit of costs in an 
                amount greater than $5,000,000 but less than 
                $10,000,000, be $13,000 plus 0.8 percent of such costs;
                    ``(F) for an incurred cost audit of costs in an 
                amount greater than $10,000,000 but less than 
                $50,000,000, be $23,000 plus 0.7 percent of such costs;
                    ``(G) for an incurred cost audit of costs in an 
                amount greater than $50,000,000 but less than 
                $100,000,000, be $73,000 plus 0.6 percent of such 
                costs;
                    ``(H) for an incurred cost audit of costs in an 
                amount greater than $100,000,000 but less than 
                $500,000,000, be $153,000 plus 0.52 percent of such 
                costs; and
                    ``(I) for an incurred cost audit of costs in an 
                amount greater than $500,000,000, be $503,000 plus 0.45 
                percent of such costs.
    ``(2) An auditor that performs an incurred cost audit under this 
section may use a materiality standard of a lesser amount than the 
materiality standard described under paragraph (1) with respect to a 
particular qualified incurred cost submission from a contractor based 
on an assessment of risk presented by such qualified incurred cost 
submission. The risk shall be assessed by the auditor in accordance 
with generally accepted Government auditing standards and guidance 
issued by the Secretary of Defense.
    ``(3) Not later than September 1, 2020, and every 5 years 
thereafter, the Secretary of Defense shall submit to the congressional 
defense committees a report on commercially accepted standards of risk 
and materiality for performing incurred cost audits. The report may 
contain recommendations to modify the materiality standards under 
paragraph (1) to be consistent with such commercially accepted 
standards of risk and materiality.
    ``(e) Timeliness of Incurred Cost Audits.--(1) The Secretary of 
Defense shall ensure that all incurred cost audits performed pursuant 
to subsection (c) are performed in a timely manner.
    ``(2) The Secretary of Defense shall notify a contractor within 30 
days after receipt of an incurred cost submission from the contractor 
whether the submission is a qualified incurred cost submission.
    ``(3) Audit findings shall be issued for an incurred cost audit not 
later than one year after the date of receipt of a qualified incurred 
cost submission.
    ``(4) If audit findings are not issued within one year after the 
date of receipt of a qualified incurred cost submission, such qualified 
incurred cost submission shall be considered accepted in its entirety 
unless the Secretary of Defense can demonstrate that the contractor 
unreasonably withheld information necessary to perform the incurred 
cost audit.
    ``(f) Review of Audit Performance.--Not later than April 1, 2025, 
the Comptroller General of the United States shall provide a report to 
the congressional defense committees that evaluates for the period 
beginning on September 1, 2020, and ending on August 31, 2023--
            ``(1) the timeliness, individual cost, and quality of 
        incurred cost audits, set forth separately by incurred cost 
        audits performed by the Defense Contract Audit Agency and by 
        qualified private auditors;
            ``(2) the cost to contractors of the Department of Defense 
        for incurred cost audits, set forth separately by incurred cost 
        audits performed by the Defense Contract Audit Agency and by 
        qualified private auditors;
            ``(3) the effect, if any, on other types of audits 
        conducted by the Defense Contract Audit Agency that results 
        from incurred cost audits conducted by qualified private 
        auditors; and
            ``(4) the capability and capacity of commercial auditors to 
        conduct incurred cost audits for the Department of Defense.
    ``(g) Definitions.--In this section:
            ``(1) The term `commercial auditor' means a private entity 
        engaged in the business of performing audits.
            ``(2) The term `incurred cost audit' means an audit of 
        charges to the Government by a contractor under a cost-type 
        contract or a contract that is not a fixed-price contract.
            ``(3) The term `materiality standard' means a dollar amount 
        of misstatements, including omissions, contained in an incurred 
        cost audit that would be material if the misstatements, 
        individually or in the aggregate, could reasonably be expected 
        to influence the economic decisions of the Government made on 
        the basis of the incurred cost audit.
            ``(4) The term `qualified incurred cost submission' means a 
        submission by a contractor of costs incurred under a cost-type 
        contract or a contract that is not a fixed-price contract that 
        has been qualified by the Department of Defense as sufficient 
        to conduct an incurred cost audit.
            ``(5) The term `qualified private auditor' means a 
        commercial auditor--
                    ``(A) that performs audits in accordance with 
                generally accepted Government auditing standards of the 
                Comptroller General of the United States; and
                    ``(B) that has been peer reviewed, consistent with 
                commercially accepted peer review processes, and has 
                passed such peer review.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2313a the following new item:

``2313b. Performance of incurred cost audits.''.
    (b) Conforming Amendment.--Section 190 of title 10, United States 
Code, as proposed to be added by section 820(b)(1) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130 
Stat. 2274), is amended by striking subsection (f).

SEC. 103. MODIFICATIONS TO COST OR PRICING DATA AND REPORTING 
              REQUIREMENTS.

    (a) Modifications to Submissions of Cost or Pricing Data.--
            (1) Title 10.--Subsection (a) of section 2306a of title 10, 
        United States Code, is amended--
                    (A) by striking ``December 5, 1990'' each place it 
                appears and inserting ``June 30, 2018'';
                    (B) by striking ``December 5, 1991'' each place it 
                appears and inserting ``July 1, 2018'';
                    (C) by striking ``$100,000'' each place it appears 
                and inserting ``$750,000'';
                    (D) in paragraph (1)--
                            (i) in subparagraphs (A)(i), (B)(i), 
                        (C)(i), (C)(ii), and (D)(i), by striking 
                        ``$500,000'' and inserting ``$2,500,000''; and
                            (ii) in subparagraph (B)(ii), by striking 
                        ``$500,000'' and inserting ``$750,000'';
                    (E) in paragraph (6), by striking ``December 5, 
                1990'' and inserting ``June 30, 2018''; and
                    (F) in paragraph (7), by striking ``to the amount'' 
                and all that follows through ``higher multiple of 
                $50,000.'' and inserting ``in accordance with section 
                1908 of title 41.''.
            (2) Title 41.--Section 3502 of title 41, United States 
        Code, is amended--
                    (A) in subsection (a)--
                            (i) by striking ``October 13, 1994'' each 
                        place it appears and inserting ``June 30, 
                        2018'';
                            (ii) by striking ``$100,000'' each place it 
                        appears and inserting ``$750,000'';
                            (iii) in paragraphs (1)(A), (2)(A), (3)(A), 
                        (3)(B), and (4)(A), by striking ``$500,000'' 
                        and inserting ``$2,500,000''; and
                            (iv) in paragraph (2)(B), by striking 
                        ``$500,000'' and inserting ``$750,000'';
                    (B) in subsection (f), by striking ``October 13, 
                1994'' and inserting ``June 30, 2018''; and
                    (C) in subsection (g), by striking ``to the 
                amount'' and all that follows through ``higher multiple 
                of $50,000.'' and inserting ``in accordance with 
                section 1908.''.
    (b) Requirements for Defense Contract Audit Agency Report.--
            (1) In general.--Section 2313a of title 10, United States 
        Code, is amended--
                    (A) in subsection (a)(2)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``and dollar 
                                value'' after ``number''; and
                                    (II) by inserting ``, set forth 
                                separately by type of audit'' after 
                                ``pending'';
                            (ii) in subparagraph (C), by inserting ``, 
                        both from the date of receipt of a qualified 
                        incurred cost submission (as defined in section 
                        2313b of this title) and from the date the 
                        audit begins'' after ``audit'';
                            (iii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) the sustained questioned costs, set forth 
                separately by type of audit, both as a total value and 
                as a percentage of the total questioned costs for the 
                audit;'';
                            (iv) by striking subparagraph (E); and
                            (v) by inserting after subparagraph (D) the 
                        following new subparagraphs:
                    ``(E) the aggregate cost of performing audits, set 
                forth separately by type of audit;
                    ``(F) the ratio of sustained questioned costs to 
                the aggregate costs of performing audits, set forth 
                separately by type of audit; and
                    ``(G) the total number and dollar value of audits 
                that are pending for a period longer than one year as 
                of the end of the fiscal year covered by the report, 
                and the fiscal year in which the qualified submission 
                was received, set forth separately by type of audit;''; 
                and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) Sustained Questioned Costs Defined.--The term `sustained 
questioned costs' means questioned costs that were recovered by the 
Federal Government as a result of contract negotiations related to such 
questioned costs.''.
            (2) Exemption to report termination requirements.--Section 
        1080 of the National Defense Authorization Act for Fiscal Year 
        2016 (Public Law 114-92; 129 Stat. 1000; 10 U.S.C. 111 note), 
        as amended by section 1061(j) of the National Defense 
        Authorization Act for Fiscal Year 2017 (Public Law 114-328), 
        does not apply to the report required to be submitted to 
        Congress under section 2313a of title 10, United States Code.
    (c) Adjustment to Value of Covered Contracts for Requirements 
Relating to Allowable Costs.--Subparagraph (B) of section 2324(l)(1) of 
title 10, United States Code, is amended by striking ``to the 
equivalent'' and all that follows through ``higher multiple of 
$50,000.'' and inserting ``in accordance with section 1908 of title 
41.''.

          TITLE II--EARLY INVESTMENTS IN ACQUISITION PROGRAMS

SEC. 201. REQUIREMENT TO EMPHASIZE RELIABILITY AND MAINTAINABILITY IN 
              WEAPON SYSTEM DESIGN.

    (a) Sustainment Factors in Weapon System Design.--
            (1) In general.--Chapter 144 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2442. Sustainment factors in weapon system design
    ``(a) In General.--The Secretary of Defense shall ensure that the 
defense acquisition system gives ample emphasis to sustainment factors, 
particularly those factors that are affected principally by the design 
of a weapon system, early in the development of a weapon system.
    ``(b) Requirements Process.--The Secretary shall revise guidance on 
the process for the development of capabilities requirements to provide 
sufficient emphasis to sustainment factors. The revised guidance shall 
include reliability and maintainability as performance attributes of 
the key performance parameter on sustainment.
    ``(c) Solicitation and Award of Contracts.--
            ``(1) Requirement.--The program manager of a weapon system 
        shall include in the solicitation for and terms of a contract 
        for the development or production of a weapon system clearly 
        defined and measurable requirements for reliability and 
        maintainability as a performance requirement in the contract.
            ``(2) Exception.--If the program manager determines that 
        reliability or maintainability should not be a performance 
        requirement in a contract, the program manager shall submit 
        justification for such decision in writing to the milestone 
        decision authority for the program.
            ``(3) Revised guidance on source selection criteria.--The 
        Secretary shall revise guidance in the Defense Federal 
        Acquisition Regulation Supplement to provide sufficient 
        emphasis to sustainment factors in the process for source 
        selection. The revised guidance shall include reliability and 
        maintainability as factors or significant subfactors to 
        consider in the evaluation of competitive proposals.
    ``(d) Contract Performance.--
            ``(1) In general.--The Secretary shall establish processes 
        and best practices across the Department of Defense for 
        responding to the positive or negative performance of a 
        contractor in meeting the sustainment requirements of a 
        development or production contract for a weapon system. The 
        Secretary shall encourage the use of incentive fees authorized 
        in paragraph (2) in all development and production contracts 
        for weapons systems. The Secretary shall take the necessary 
        actions to enable program offices to execute the recovery 
        options required for each development and production contract 
        under paragraph (3).
            ``(2) Authority for incentive fees.--The Secretary of 
        Defense is authorized to pay an incentive fee to a contractor 
        that exceeds the reliability or maintainability requirements of 
        a development or production contract. In exercising the 
        authority provided in this paragraph, the Secretary may provide 
        in the terms of the contract for the payment of an incentive 
        fee to a contractor not later than 10 years after fielding of 
        the weapon system.
            ``(3) Recovery options.--(A) Any development or production 
        contract for a weapon system shall include terms for amounts to 
        be paid by the contractor to the Government for failure to meet 
        the reliability and maintainability requirements of a contract 
        after a reasonable amount of time, as specified in the 
        contract. Terms for such amounts shall be included in the 
        solicitation for the contract. Such terms shall include 
        provisions providing that--
                    ``(i) the contractor, at no or minimal cost to the 
                Government as determined by the Secretary and included 
                in the contract, identifies the cause of the failure in 
                the system design, develops an engineering change, and, 
                in the case of a production contract, modifies all end 
                items to be delivered or already delivered under the 
                contract; or
                    ``(ii) the contractor provides the Government--
                            ``(I) a refund in the amount required to 
                        identify the cause of the failure in the system 
                        design, develop an engineering change, and 
                        modify all end items delivered under the 
                        contract; and
                            ``(II) associated technical data required 
                        to make the necessary modifications.
            ``(B) The Secretary may waive the requirement in 
        subparagraph (A) with respect to a development or production 
        contract if the Secretary--
                    ``(i) determines that such requirement is not in 
                the national security interests of the United States; 
                and
                    ``(ii) provides notification and the rationale for 
                the determination to the congressional defense 
                committees before awarding the contract.
            ``(4) Measurement of reliability and maintainability.--In 
        carrying out paragraphs (2) and (3), the program manager shall 
        base determinations of a contractor's performance on 
        reliability and maintainability data collected during 
        developmental testing, operational testing, or the operation of 
        a fielded weapon system as measured and validated by the 
        military department concerned on a date chosen by the program 
        manager and specified in the contract.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter I of such chapter is amended by adding 
        at the end the following new item:

``2442. Sustainment factors in weapon system design.''.
    (b) Deadline for Guidance.--The Secretary of Defense shall revise 
guidance as required by subsections (b) and (c)(3) of section 2442 of 
title 10, United States Code, as added by subsection (a), not later 
than 180 days after the date of the enactment of this Act.
    (c) Effective Date for Certain Provisions.--Subsections (c) and (d) 
of section 2442 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to any weapon system development and 
production contract for which the contract solicitation is issued on or 
after the date occurring one year after the date of the enactment of 
this Act.
    (d) Investment Program Authorized.--
            (1) In general.--The Secretary of Defense shall establish 
        an investment program for funding engineering changes to the 
        design of a weapon system in the development or production 
        phase of an acquisition program to improve reliability or 
        maintainability of the weapon system and reduce projected 
        operating and support costs. The program may be funded from the 
        Defense Modernization Account authorized in section 2216 of 
        title 10, United States Code. A program manager may apply for 
        available funds by presenting a business case analysis of the 
        anticipated return on investment of such funds.
            (2) Guidance required.--Not later than 180 days after the 
        date of the enactment of this Act, the Secretary of Defense 
        shall issue guidance for carrying out the program authorized 
        under paragraph (1). The guidance shall set forth the process 
        for applying for available funds, including information on the 
        validation of business case analyses and the evaluation of 
        applications.

SEC. 202. LICENSING OF APPROPRIATE INTELLECTUAL PROPERTY TO SUPPORT 
              MAJOR WEAPON SYSTEMS.

    (a) Negotiation of Price for Technical Data Before Development or 
Production of Major Weapon System.--
            (1) Requirement.--Chapter 144 of title 10, United States 
        Code, is amended by inserting after section 2438 the following 
        new section:
``Sec. 2439. Negotiation of price for technical data before development 
              or production of major weapon systems
    ``The Secretary of Defense shall ensure that the Department of 
Defense, before selecting a contractor for the development or 
production of a major weapon system, negotiates a price for technical 
data to be delivered under a contract for such development or 
production.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2438 the following new item:

``2439. Negotiation of price for technical data before development or 
                            production of major weapon systems.''.
    (b) Written Determination for Milestone B Approval.--Subsection 
(a)(3) of section 2366b of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (M); and
            (2) by inserting after subparagraph (N) the following new 
        subparagraph:
                    ``(O) appropriate actions have been taken to 
                negotiate and enter into a contract for the technical 
                data required to support the program; and''.
    (c) Preference for Negotiation of Customized License Agreements.--
Section 2320 of title 10, United States Code, is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Preference for Specially Negotiated Licenses.--The Secretary 
of Defense shall, to the maximum extent practicable, negotiate and 
enter into a contract with a contractor for a specially negotiated 
license for technical data to support the product support strategy of a 
major weapon system or subsystem of a major weapon system. In 
performing the assessment and developing the corresponding strategy 
required under subsection (e) for such a system or subsystem, a program 
manager shall consider the use of specially negotiated licenses to 
acquire customized technical data appropriate for the particular 
elements of the product support strategy.''.

SEC. 203. MANAGEMENT OF INTELLECTUAL PROPERTY MATTERS WITHIN THE 
              DEPARTMENT OF DEFENSE.

    (a) Management of Intellectual Property.--
            (1) In general.--Chapter 137 of title 10, United States 
        Code, is amended by inserting after section 2321 the following 
        new section:
``Sec. 2322. Management of intellectual property matters within the 
              Department of Defense
    ``(a) Office and Director of Intellectual Property.--(1) There is 
an Office of Intellectual Property within the Office of the Under 
Secretary of Defense for Acquisition and Sustainment.
    ``(2) The Office shall be headed by a Director of Intellectual 
Property, who shall be assigned to such position by the Under Secretary 
from among civilian employees of the Department of Defense with the 
qualifications described in paragraph (3). The Director is responsible 
in the Department of Defense to the Secretary of Defense (after the 
Under Secretary of Defense for Acquisition and Sustainment) for policy 
and oversight of the acquisition and licensing of intellectual property 
within the Department of Defense. The Director shall report directly to 
the Under Secretary.
    ``(3) In order to qualify to be assigned to the position of 
Director, an individual shall--
            ``(A) have management expertise in, and professional 
        experience with, intellectual property matters, including an 
        understanding of intellectual property law, regulations, and 
        policies, especially with respect to regulations and policies 
        of the Federal Government and the Department of Defense for 
        acquiring or licensing intellectual property, and best 
        practices for negotiating and executing business arrangements 
        with industry for the acquisition or licensing of intellectual 
        property; and
            ``(B) have an understanding of Department of Defense weapon 
        system acquisition.
    ``(4) The Secretary of Defense shall designate the position of 
Director as a critical acquisition position under section 1733(b)(1)(C) 
of this title.
    ``(b) Duties.--(1) The Director of Intellectual Property (in this 
section referred to as the `Director') shall oversee and coordinate 
efforts throughout the Department of Defense to acquire or license 
intellectual property within the Department of Defense. The duties 
under this paragraph shall include the duties specified in paragraphs 
(2) through (8).
    ``(2) The Director shall develop and recommend any policy guidance 
on the acquisition or licensing of intellectual property to be issued 
by the Secretary of Defense.
    ``(3) The Director shall provide oversight and coordination of the 
efforts within the Department of Defense to acquire or license 
intellectual property--
            ``(A) to ensure that program managers are aware of the 
        rights afforded the Federal Government and contractors in 
        intellectual property and that program managers fully consider 
        and use all available techniques and best practices for 
        acquiring or licensing intellectual property early in the 
        acquisition process;
            ``(B) to enable consistency across the military departments 
        and the Department of Defense in strategies for obtaining 
        intellectual property and communicating with industry; and
            ``(C) to raise awareness within the acquisition, science 
        and technology, and logistics communities within the Department 
        of intellectual property issues.
    ``(4) The Director shall assist program managers in developing 
customized intellectual property strategies for each weapon system 
based on, at a minimum, the unique characteristics of the weapon system 
and its components, the product support strategy for the weapon system, 
the organic industrial base strategy of the military department 
concerned, and the commercial market.
    ``(5) The Director shall develop resources, including templates for 
specially negotiated licenses, and make them available to the 
acquisition workforce.
    ``(6) The Director shall establish, maintain, supervise, and detail 
to program offices the cadre of intellectual property experts 
established under subsection (c).
    ``(7) The Director, in coordination with the Defense Acquisition 
University, shall--
            ``(A) develop a career path, including development 
        opportunities, talent management programs, and training, for 
        the cadre of intellectual property experts established under 
        subsection (c); and
            ``(B) develop, update, and coordinate intellectual property 
        training provided to the acquisition workforce.
    ``(8) The Director shall foster communications with industry and 
serve as a central point of contact within the Department of Defense 
for communications with contractors on intellectual property matters. 
The Director may interact directly with industry, trade associations, 
other Government agencies, academic research and educational 
institutions, and scientific organizations engaged in intellectual 
property matters.
    ``(c) Cadre of Intellectual Property Experts.--(1) The Director 
shall establish within the Office of Intellectual Property a cadre of 
personnel who are experts in intellectual property matters. The purpose 
of the cadre is to ensure a consistent, strategic, and highly 
knowledgeable approach to acquiring or licensing intellectual property 
by providing expert advice, assistance, and resources to the 
acquisition workforce on intellectual property matters, including 
acquiring or licensing intellectual property.
    ``(2) The cadre of experts shall be detailed temporarily to a 
weapons system program office or an acquisition command within a 
military department to advise, assist, and provide resources to a 
program manager or program executive officer on intellectual property 
matters at various stages of the life cycle of a weapon system. In 
performing such duties, the experts shall--
            ``(A) interpret and provide counsel on laws, regulations, 
        and policies relating to intellectual property;
            ``(B) provide advice and assistance in the development of 
        an acquisition strategy, product support strategy, and 
        intellectual property strategy for a weapon system;
            ``(C) provide resources, including templates, to assist in 
        the drafting of a contract solicitation or contract;
            ``(D) interact with or assist in interactions with 
        contractors, including communications and negotiations with 
        contractors on contract solicitations and contract awards; and
            ``(E) conduct or assist with mediation if technical data 
        delivered pursuant to a contract is incomplete or does not 
        comply with the terms of the contract.
    ``(3)(A) In order to achieve the purpose set forth in paragraph 
(1), the Director shall ensure the cadre has the appropriate number of 
staff and such staff possesses the necessary skills, knowledge, and 
experience to carry out the duties under paragraph (2), including in 
relevant areas of law, contracting, acquisition, logistics, and systems 
engineering.
    ``(B) Civilian personnel from within the Office of the Secretary of 
Defense, Joint Staff, military departments, Defense Agencies, and 
combatant commands may be detailed to serve as members of the cadre, 
upon request of the Director.
    ``(C) The Director may use the authorities for highly qualified 
experts under section 9903 of title 5, to hire experts as members of 
the cadre who are skilled professionals in intellectual property and 
related matters.
    ``(D) The Director may enter into a contract with a private-sector 
entity for highly specialized expertise to support the cadre. Such 
entity shall be considered a covered Government support contractor, as 
defined in section 2320 of this title.
    ``(E) In establishing the cadre, the Director shall give preference 
to civilian employees of the Department of Defense, rather than members 
of the armed forces, to maintain continuity in the cadre.
    ``(F) The Director is authorized to use funding from the Defense 
Acquisition Workforce Development Fund for the purpose of recruitment, 
training, and retention of the cadre, including paying salaries of 
newly hired members of the cadre for up to three years.
    ``(G) Members of the cadre shall be supervised by and report to the 
Director.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2322. Management of intellectual property matters within the 
                            Department of Defense.''.
    (b) Placement in the Office of the Secretary of Defense.--
Subsection 131(b)(8) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
                    ``(J) The Director of the Office of Intellectual 
                Property assigned pursuant to section 2322(a) of this 
                title.''.
    (c) Additional Acquisition Position.--Subsection 1721(b) of title 
10, United States Code, is amended by adding at the end the following 
new paragraph:
            ``(12) Intellectual property.''.
    (d) Review of Acquisition Workforce Training.--Not later than one 
year after the date of the enactment of this Act, the Secretary of 
Defense shall revise the education and training programs provided to 
the acquisition workforce under chapter 87 of title 10, United States 
Code--
            (1) to ensure the acquisition workforce maintains a basic 
        familiarity with the fundamental aspects of the acquisition and 
        licensing of intellectual property; and
            (2) to establish and maintain advanced expertise in the 
        acquisition and licensing of intellectual property to staff the 
        cadre of intellectual property experts required under section 
        2322 of title 10, United States Code, as added by subsection 
        (a).

SEC. 204. IMPROVEMENT OF PLANNING FOR ACQUISITION OF SERVICES.

    (a) In General.--
            (1) Improvement of planning for acquisition of services.--
        Chapter 137 of title 10, United States Code, is amended by 
        inserting after section 2328 the following new section:
``Sec. 2329. Procurement of services: data analysis and requirements 
              validation
    ``(a) In General.--The Secretary of Defense shall ensure that--
            ``(1) appropriate and sufficiently detailed data are 
        collected and analyzed to support the validation of 
        requirements for services contracts and inform the planning, 
        programming, budgeting, and execution process of the Department 
        of Defense;
            ``(2) requirements for services contracts are evaluated 
        appropriately and in a timely manner to inform decisions 
        regarding the procurement of services; and
            ``(3) decisions regarding the procurement of services 
        consider available resources and total force management 
        policies and procedures.
    ``(b) Specification of Amounts Requested in Budget.--Effective 
October 1, 2022, the Secretary of Defense shall annually submit to 
Congress information on services contracts that clearly and separately 
identifies the amount requested for each category of services to be 
procured for each Defense Agency, Department of Defense Field Activity, 
command, or military installation. Such information shall--
            ``(1) be submitted at or about the time of the budget 
        submission by the President under section 1105(a) of title 31;
            ``(2) cover the fiscal year covered by such budget 
        submission by the President;
            ``(3) be consistent with total amounts of estimated 
        expenditures and proposed appropriations necessary to support 
        the programs, projects, and activities of the Department of 
        Defense included in such budget submission by the President for 
        that fiscal year; and
            ``(4) be organized using a common enterprise data structure 
        developed under section 2222 of this title.
    ``(c) Data Analysis.--(1) Each Secretary of a military department 
shall regularly analyze past spending patterns and anticipated future 
requirements with respect to the procurement of services within such 
military department.
    ``(2)(A) The Secretary of Defense shall regularly analyze past 
spending patterns and anticipated future requirements with respect to 
the procurement of services--
            ``(i) within each Defense Agency and Department of Defense 
        Field Activity; and
            ``(ii) across military departments, Defense Agencies, and 
        Department of Defense Field Activities.
    ``(B) The Secretaries of the military departments shall make data 
on services contracts available to the Secretary of Defense for 
purposes of conducting the analysis required under subparagraph (A).
    ``(3) The analyses conducted under this subsection shall--
            ``(A) identify contracts for similar services that are 
        procured for three or more consecutive years at each Defense 
        Agency, Department of Defense Field Activity, command, or 
        military installation;
            ``(B) evaluate patterns in the procurement of services, to 
        the extent practicable, at each Defense Agency, Department of 
        Defense Field Activity, command, or military installation and 
        by category of services procured;
            ``(C) be used to validate requirements for services 
        contracts entered into after the date of the enactment of this 
        subsection; and
            ``(D) be used to inform decisions on the award of and 
        funding for such services contracts.
    ``(d) Requirements Evaluation.--Each Services Requirements Review 
Board shall evaluate each requirement for a services contract, taking 
into consideration total force management policies and procedures, 
available resources, the analyses conducted under subsection (c), and 
contracting efficacy and efficiency. An evaluation of a services 
contract for compliance with contracting policies and procedures may 
not be considered to be an evaluation of a requirement for such 
services contract.
    ``(e) Timely Planning To Avoid Bridge Contracts.--(1) Effective 
October 1, 2018, the Secretary of Defense shall ensure that a 
requirements owner shall, to the extent practicable, plan appropriately 
before the date of need of a service at a Defense Agency, Department of 
Defense Field Activity, command, or military installation to avoid the 
use of a bridge contract to provide for continuation of a service to be 
performed through a services contract. Such planning shall include 
allowing time for a requirement to be validated, a services contract to 
be entered into, and funding for the services contract to be secured.
    ``(2)(A) Upon the first use, due to inadequate planning (as 
determined by the Secretary of Defense), of a bridge contract to 
provide for continuation of a service to be performed through a 
services contract, the requirements owner, along with the contracting 
officer or a representative of the contracting officer for the 
contract, shall--
            ``(i) for a services contract in an amount less than 
        $10,000,000, provide an update on the status of the bridge 
        contract (including the rationale for using the bridge 
        contract) to the commander or the senior civilian official of 
        the Defense Agency concerned, Department of Defense Field 
        Activity concerned, command concerned, or military installation 
        concerned, as applicable; or
            ``(ii) for a services contract in an amount equal to or 
        greater than $10,000,000, provide an update on the status of 
        the bridge contract (including the rationale for using the 
        bridge contract) to the service acquisition executive for the 
        military department concerned, the head of the Defense Agency 
        concerned, the combatant commander concerned, or the Under 
        Secretary of Defense for Acquisition and Sustainment, as 
        applicable.
    ``(B) Upon the second use, due to inadequate planning (as 
determined by the Secretary of Defense), of a bridge contract to 
provide for continuation of a service to be performed through a 
services contract in an amount less than $10,000,000, the commander or 
senior civilian official referred to in subparagraph (A)(i) shall 
provide notification of such second use to the Vice Chief of Staff of 
the armed force concerned and the service acquisition executive of the 
military department concerned, the head of the Defense Agency 
concerned, the combatant commander concerned, or the Under Secretary of 
Defense for Acquisition and Sustainment, as applicable.
    ``(f) Exception.--Except with respect to the analyses required 
under subsection (c), this section shall not apply to services 
contracts in support of contingency operations, humanitarian 
assistance, disaster relief, or national security emergencies.
    ``(g) Definitions.--In this section:
            ``(1) The term `bridge contact' means--
                    ``(A) an extension to an existing contract beyond 
                the period of performance to avoid a lapse in service 
                caused by a delay in awarding a subsequent contract; or
                    ``(B) a new short-term contract awarded on a sole-
                source basis to avoid a lapse in service caused by a 
                delay in awarding a subsequent contract.
            ``(2) The term `requirements owner' means a member of the 
        armed forces (other than the Coast Guard) or a civilian 
        employee of the Department of Defense responsible for a 
        requirement for a service to be performed through a services 
        contract.
            ``(3) The term `Services Requirements Review Board' has the 
        meaning given in Department of Defense Instruction 5000.74, 
        titled `Defense Acquisition of Services' and dated January 5, 
        2016, or a successor instruction.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2328 the following new item:

``2329. Procurement of services: data analysis and requirements 
                            validation.''.
    (b) Conforming Repeal.--Effective October 1, 2022--
            (1) section 235 of title 10, United States Code, is 
        repealed; and
            (2) the table of sections at the beginning of chapter 9 of 
        such title is amended by striking the item relating to section 
        235.

SEC. 205. IMPROVEMENTS TO TEST AND EVALUATION PROCESSES AND TOOLS.

    (a) Developmental Test Plan Sufficiency Assessments.--
            (1) Addition to milestone b brief summary report.--Section 
        2366b(c)(1) of title 10, United States Code, is amended--
                    (A) by redesignating subparagraph (G) as 
                subparagraph (H); and
                    (B) by inserting after subparagraph (F) the 
                following new subparagraph (G):
                    ``(G) An assessment of the sufficiency of 
                developmental test and evaluation plans.''.
            (2) Addition to milestone c brief summary report.--Section 
        2366c(a) of such title is amended by inserting after paragraph 
        (3) the following new paragraph:
            ``(4) An assessment of the sufficiency of the developmental 
        test and evaluation completed.''.
            (3) Responsibility for conducting assessments.--For 
        purposes of the sufficiency assessments required by section 
        2366b(c)(1) and section 2366c(a)(4) of such title, as added by 
        paragraphs (1) and (2), with respect to a major defense 
        acquisition program--
                    (A) if the milestone decision authority for the 
                program is the service acquisition executive of the 
                military department that is managing the program, the 
                sufficiency assessment shall be conducted by the 
                service test agency that serves as the lead 
                developmental test and evaluation organization for the 
                program; and
                    (B) if the milestone decision authority for the 
                program is the Under Secretary of Defense for 
                Acquisition and Sustainment, the sufficiency assessment 
                shall be conducted by the senior Department of Defense 
                official with responsibility for developmental testing.
            (4) Guidance required.--Within one year after the date of 
        the enactment of this Act, the senior Department of Defense 
        official with responsibility for developmental testing shall 
        develop guidance for the sufficiency assessments required by 
        section 2366b(c)(1) and section 2366c(a)(4) of title 10, United 
        States Code, as added by paragraphs (1) and (2). At a minimum, 
        the guidance shall require--
                    (A) for the sufficiency assessment required by 
                section 2366b(c)(1) of such title, that the assessment 
                address the sufficiency of--
                            (i) the developmental test and evaluation 
                        plan;
                            (ii) the developmental test and evaluation 
                        schedule, including a comparison to historic 
                        analogous systems;
                            (iii) the developmental test and evaluation 
                        resources (facilities, personnel, and test 
                        assets);
                            (iv) the risks of developmental test and 
                        production concurrency; and
                            (v) the developmental test criteria for 
                        entering the production phase; and
                    (B) for the sufficiency assessment required by 
                section 2366c(a)(4) of such title, that the assessment 
                address--
                            (i) the sufficiency of the developmental 
                        test and evaluation completed;
                            (ii) the sufficiency of the plans and 
                        resources available for remaining developmental 
                        test and evaluation;
                            (iii) the risks identified during 
                        developmental testing to the production and 
                        deployment phase;
                            (iv) the sufficiency of the plans and 
                        resources for remaining developmental test and 
                        evaluation; and
                            (v) the readiness of the system to perform 
                        scheduled initial operational test and 
                        evaluation.
    (b) Evaluation of Department of Defense Need for Centralized Tools 
for Developmental Test and Evaluation.--
            (1) In general.--The Secretary of Defense shall evaluate 
        the strategy of the Department of Defense for developing and 
        expanding the use of tools designed to facilitate the cost 
        effectiveness and efficiency of developmental testing, 
        including automated test methods and tools, modeling and 
        simulation tools, and big data analytics technologies. The 
        evaluation shall include a determination of the appropriate 
        role of the senior Department of Defense official with 
        responsibility for developmental testing in developing 
        enterprise level strategies related to such types of testing 
        tools.
            (2) Briefing required.--Not later than one year after the 
        date of the enactment of this Act, the Secretary shall provide 
        a briefing to the Committee on Armed Services of the House of 
        Representatives on the results of the evaluation required by 
        paragraph (1).

             TITLE III--ACQUISITION WORKFORCE IMPROVEMENTS

SEC. 301. ENHANCEMENTS TO THE CIVILIAN PROGRAM MANAGEMENT WORKFORCE.

    (a) Establishment of Program Manager Development Program.--
            (1) In general.--The Secretary of Defense, in consultation 
        with the Secretaries of the military departments, shall 
        implement a program manager development program to provide for 
        the professional development of experienced civilian personnel 
        with the potential to become a program manager of a major 
        defense acquisition program. The program shall be administered 
        and overseen by the Secretary of each military department, 
        acting through the service acquisition executive for the 
        department concerned.
            (2) Plan required.--Not later than one year after the date 
        of the enactment of this Act, the Secretary of Defense shall 
        provide to the Committees on Armed Services of the Senate and 
        the House of Representatives a comprehensive plan to implement 
        the program established under paragraph (1). The plan shall 
        include the following elements:
                    (A) An assessment of the minimum level of subject 
                matter experience, education, years of experience, 
                certifications, and other qualifications required to be 
                selected into the program, set forth separately for 
                current Department of Defense employees and for 
                personnel hired into the program from outside the 
                Department of Defense.
                    (B) A description of hiring flexibilities to be 
                used to recruit qualified personnel from outside the 
                Department of Defense.
                    (C) A description of the extent to which mobility 
                agreements will be required to be signed by personnel 
                selected for the program during their participation in 
                the program and after their completion of the program.
                    (D) A description of the tenure obligation required 
                of personnel selected for the program.
                    (E) A determination of the skills needed to be 
                developed by personnel in the program in order to 
                prepare them to become a program manager of a major 
                defense acquisition program, and a description of how 
                those skills would be demonstrated.
                    (F) A plan for training during the course of the 
                program, including training in engineering, finance and 
                budgeting, market research, business acumen, 
                contracting, supplier management, requirement setting 
                and tradeoffs, intellectual property matters, and 
                software.
                    (G) A description of career paths to be followed by 
                personnel in the program in order to ensure that 
                personnel in the program gain expertise in the skills 
                identified by the Department under subparagraph (E) and 
                the topics identified under subparagraph (F), 
                including--
                            (i) a determination of the types of 
                        advanced educational degrees that enhance 
                        program management skills and the mechanisms 
                        available to the Department of Defense to 
                        facilitate the attainment of those degrees by 
                        personnel in the program;
                            (ii) a determination of required 
                        assignments to positions within acquisition 
                        programs, including position type and 
                        acquisition category of the program office;
                            (iii) a determination of required or 
                        encouraged rotations to career broadening 
                        positions outside of acquisition programs; and
                            (iv) a determination of how the program 
                        will ensure the opportunity for a required 
                        rotation to industry of at least six months to 
                        develop an understanding of industry motivation 
                        and business acumen.
                    (H) A description of the number of personnel 
                anticipated to be selected into the program, how 
                frequently selections will occur, how long personnel 
                selected into the program will participate in the 
                program, and how personnel will be placed into an 
                assignment at the completion of the program.
                    (I) A description of benefits that will be offered 
                under the program using existing human capital 
                flexibilities to retain qualified employees, such as 
                student loan repayments.
                    (J) An assessment of personnel flexibilities needed 
                to allow the military departments and the Defense 
                Agencies to reassign or remove program managers that do 
                not perform effectively.
                    (K) A description of how the program will be 
                administered and overseen by the Secretaries of each 
                military department, acting through the service 
                acquisition executive for the department concerned.
                    (L) A description of how the program will be 
                integrated with existing program manager development 
                efforts at each military department.
            (3) Use of defense acquisition workforce development 
        fund.--Amounts in the Department of Defense Acquisition 
        Workforce Development Fund (established under section 1705 of 
        title 10, United States Code) may be used to pay the base 
        salary of personnel in the program established under paragraph 
        (1) during the period of time such personnel are temporarily 
        assigned to a developmental rotation or training program 
        anticipated to last at least six months.
            (4) Implementation.--The program established under 
        paragraph (1) shall be implemented no later than June 1, 2019.
    (b) Establishment of Program and Project Management Job Series.--
Within one year after the date of the enactment of this Act, the 
Secretary of Defense shall prescribe regulations that establish a new 
job series, or update and improve an existing job series, for program 
and project management throughout the Department of Defense. The 
Secretary shall take into consideration the regulations issued by the 
Director of the Office of Personnel Management in accordance with 
section 861(c)(2) of the National Defense Authorization Act for Fiscal 
Year 2017 (Public Law 114-328; 130 Stat. 2301) to achieve consistency 
in job series for program and project management with other Federal 
Agencies to the extent practicable.
    (c) Independent Study of Financial Incentives for Program 
Managers.--
            (1) Requirement for study.--Not later than 30 days after 
        the date of the enactment of this Act, the Secretary of Defense 
        shall enter into a contract with an independent research entity 
        described in paragraph (2) to carry out a comprehensive study 
        of financial incentives for Department of Defense program 
        managers for major defense acquisition programs, including--
                    (A) additional pay options for program managers to 
                provide incentives to senior civilian employees to 
                accept and remain in program manager roles;
                    (B) a financial incentive structure to reward 
                program managers for delivering capabilities on budget 
                and on time; and
                    (C) a comparison between financial incentive 
                structures for program managers in the Department of 
                Defense and an appropriate comparison group of private 
                industry companies.
            (2) Independent research entity.--The entity described in 
        this subsection is an independent research entity that is a 
        not-for-profit entity or a federally funded research and 
        development center with appropriate expertise and analytical 
        capability.
            (3) Reports.--
                    (A) To secretary.--Not later than nine months after 
                the date of the enactment of this Act, the independent 
                research entity shall provide to the Secretary a report 
                containing--
                            (i) the results of the study required by 
                        paragraph (1); and
                            (ii) such recommendations to improve the 
                        financial incentive structure of program 
                        managers for major defense acquisition programs 
                        as the independent research entity considers to 
                        be appropriate.
                    (B) To congress.--Not later than 30 days after 
                receipt of the report under subparagraph (A), the 
                Secretary of Defense shall submit such report, together 
                with any additional views or recommendations of the 
                Secretary, to the congressional defense committees.

SEC. 302. IMPROVEMENTS TO THE HIRING AND TRAINING OF THE ACQUISITION 
              WORKFORCE.

    (a) Use of Funds From the Defense Acquisition Workforce Development 
Fund To Pay Salaries of Personnel To Manage the Fund.--
            (1) In general.--Subsection 1705(e) of title 10, United 
        States Code, is amended--
                    (A) in paragraph (1)--
                            (i) by inserting ``(A)'' before ``Subject 
                        to the provisions of this subsection''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
            ``(B) Amounts in the Fund also may be used to pay salaries 
        of personnel at the Office of the Secretary of Defense, 
        military departments, and Defense Agencies to manage the 
        Fund.''; and
                    (B) in paragraph (3)--
                            (i) by striking ``and'' at the end of 
                        subparagraph (C);
                            (ii) by striking the period and inserting 
                        ``; and'' at the end of subparagraph (D); and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(E) describing the amount from the Fund that may 
                be used to pay salaries of personnel at military 
                departments and Defense Agencies to manage the Fund and 
                the circumstances under which such amounts may be used 
                for such purpose.''.
            (2) Guidance.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        issue, and submit to the congressional defense committees, the 
        policy guidance required by subparagraph (E) of section 
        1705(e)(3) of title 10, United States Code, as added by 
        paragraph (1).
    (b) Comptroller General Review of Effectiveness of Hiring and 
Retention Flexibilities for Acquisition Workforce Personnel.--
            (1) In general.--Not later than January 15, 2019, the 
        Comptroller General of the United States shall submit to the 
        congressional defense committees a report on the effectiveness 
        of hiring and retention flexibilities for the acquisition 
        workforce.
            (2) Elements.--The report under this subsection shall 
        include the following:
                    (A) A determination of the extent to which the 
                Department of Defense experiences challenges with 
                recruitment and retention of the acquisition workforce, 
                such as post-employment restrictions.
                    (B) A description of the hiring and retention 
                flexibilities available to the Department to fill 
                civilian acquisition positions and the extent to which 
                the Department has used the flexibilities available to 
                it to target critical or understaffed career fields.
                    (C) A determination of the extent to which the 
                Department has the necessary data on its use of hiring 
                and retention flexibilities for the civilian 
                acquisition workforce to strategically manage the use 
                of such flexibilities.
                    (D) An identification of the factors that affect 
                the use of hiring and retention flexibilities for the 
                civilian acquisition workforce.
                    (E) Recommendations for any necessary changes to 
                the hiring and retention flexibilities available to the 
                Department to fill civilian acquisition positions.
                    (F) A description of the flexibilities available to 
                the Department to remove underperforming members of the 
                acquisition workforce and the extent to which any such 
                flexibilities are used.
    (c) Assessment and Report Required on Business-Related Training for 
the Acquisition Workforce.--
            (1) Assessment.--The Under Secretary of Defense for 
        Acquisition and Sustainment shall conduct an assessment of the 
        following:
                    (A) The effectiveness of industry certifications 
                and other industry training programs, including 
                fellowships, available to defense acquisition workforce 
                personnel.
                    (B) Gaps in knowledge of industry operations, 
                industry motivation, and business acumen in the 
                acquisition workforce.
            (2) Report.--Not later than December 31, 2018, the Under 
        Secretary shall submit to the Committees on Armed Services of 
        the Senate and the House of Representatives a report containing 
        the results of the assessment conducted under this subsection.
            (3) Elements.--The assessment and report under paragraphs 
        (1) and (2) shall address the following:
                    (A) Current sources of training and career 
                development opportunities, industry rotations, and 
                other career development opportunities related to 
                knowledge of industry operations, industry motivation, 
                and business acumen for each acquisition position, as 
                designated under section 1721 of title 10, United 
                States Code.
                    (B) Gaps in training, industry rotations, and other 
                career development opportunities related to knowledge 
                of industry operations, industry motivation, and 
                business acumen for each such acquisition position.
                    (C) Plans to address those gaps for each such 
                acquisition position.
                    (D) Consideration of the role industry-taught 
                classes and classes taught at educational institutions 
                outside of the Defense Acquisition University could 
                play in addressing gaps.
    (d) Comptroller General Review of Acquisition Training for Non-
Acquisition Workforce Personnel.--
            (1) In general.--Not later than January 15, 2019, the 
        Comptroller General of the United States shall submit to the 
        congressional defense committees a report on acquisition-
        related training for personnel working on acquisitions but not 
        considered to be part of the acquisition workforce (as defined 
        in section 101(18) of title 10, United States Code) (hereafter 
        in this subsection referred to as ``non-acquisition workforce 
        personnel'').
            (2) Elements.--The report shall address the following:
                    (A) The extent to which non-acquisition workforce 
                personnel play a significant role in defining 
                requirements, conducting market research, participating 
                in source selection and contract negotiation efforts, 
                and overseeing contract performance.
                    (B) The extent to which the Department is able to 
                identify and track non-acquisition workforce personnel 
                performing the roles identified in subparagraph (A).
                    (C) The extent to which non-acquisition workforce 
                personnel are taking acquisition training.
                    (D) The extent to which the Defense Acquisition 
                Workforce Development Fund has been used to provide 
                acquisition training to non-acquisition workforce 
                personnel.
                    (E) A description of sources of funding other than 
                the Fund that are available to and used by the 
                Department to provide non-acquisition workforce 
                personnel with acquisition training.
                    (F) The extent to which additional acquisition 
                training is needed for non-acquisition workforce 
                personnel, including the types of training needed, the 
                positions that need the training, and any challenges to 
                delivering necessary additional training.
    (e) Briefing on Improvements to the Defense Contract Audit Agency 
Workforce.--
            (1) Briefing required.--Not later than 180 days after the 
        date of the enactment of this Act, the Director of the Defense 
        Contract Audit Agency, in consultation with the Under Secretary 
        of Defense (Comptroller), shall provide a briefing to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives.
            (2) Elements.--The briefing required by paragraph (1) shall 
        address the following:
                    (A) The current education, certifications, and 
                qualifications of the Defense Contract Audit Agency 
                workforce, by supervisory and non-supervisory levels 
                and type of position.
                    (B) Shortfalls (if any) in education, 
                qualification, or training in the Defense Contract 
                Audit Agency workforce, by supervisory and non-
                supervisory levels and type of position, and the 
                reasons for those shortfalls.
                    (C) The link between Defense Contract Audit Agency 
                workforce skill and experience gaps and the Agency's 
                backlog of audits.
                    (D) The number of Defense Contract Audit Agency 
                auditors who have relevant private sector experience, 
                including from industry exchanges while at the Defense 
                Contract Audit Agency and from prior employment 
                experiences, and the perspective of the Defense 
                Contract Audit Agency on the benefits of those 
                experiences.
                    (E) Ongoing efforts and future plans by the Defense 
                Contract Audit Agency to improve the 
                professionalization of its audit workforce, including 
                changes in hiring, training, required certifications or 
                qualifications, compensation structure, and increased 
                opportunities for industry exchanges or rotations.

SEC. 303. EXTENSION AND MODIFICATIONS TO ACQUISITION DEMONSTRATION 
              PROJECT.

    (a) Extension.--Section 1762(g) of title 10, United States Code, is 
amended by striking ``December 31, 2020'' and inserting ``December 31, 
2023''.
    (b) Implementation Strategy for Improvements in Acquisition 
Demonstration Project.--
            (1) Strategy required.--The Secretary of Defense shall 
        develop an implementation strategy to address areas for 
        improvement in the demonstration project required by section 
        1762 of title 10, United States Code, as identified in the 
        second assessment of such demonstration project required by 
        section 1762(e) of such title.
            (2) Elements.--The strategy shall include the following 
        elements:
                    (A) Actions that have been or will be taken to 
                assess whether the flexibility to set starting salaries 
                at different levels is being used appropriately by 
                supervisors and managers to compete effectively for 
                highly skilled and motivated employees.
                    (B) Actions that have been or will be taken to 
                assess reasons for any disparities in career outcomes 
                across race and gender for employees in the 
                demonstration project.
                    (C) Actions that have been or will be taken to 
                strengthen the link between employee contribution and 
                compensation for employees in the demonstration 
                project.
                    (D) Actions that have been or will be taken to 
                enhance the transparency of the pay system for 
                employees in the demonstration project.
                    (E) A timeframe and individual responsible for each 
                action identified under subparagraphs (A) through (D).
            (3) Briefing required.--Not later than one year after the 
        date of the enactment of this Act, the Secretary of Defense 
        shall provide a briefing to the Committees on Armed Services of 
        the Senate and the House of Representatives on the 
        implementation strategy required by paragraph (1).

SEC. 304. ACQUISITION POSITIONS IN THE OFFICES OF THE SECRETARIES OF 
              THE MILITARY DEPARTMENTS.

    (a) Office of the Secretary of the Army Maximum Number of 
Personnel.--Section 3014(f) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(6) The limitation in paragraph (1) may be exceeded if a civilian 
employee is assigned on permanent duty in the Office of the Secretary 
of the Army or on the Army Staff and--
            ``(A) the employee was employed immediately preceding that 
        assignment either--
                    ``(i) in a position within the Office of the Under 
                Secretary of Defense for Acquisition, Technology, and 
                Logistics that had responsibility for oversight of 
                acquisition programs or processes prior to February 1, 
                2018, and that was determined to be no longer needed as 
                a result of section 901 of the National Defense 
                Authorization Act for Fiscal Year 2017 (Public Law 114-
                328; 130 Stat. 2339) and the amendments made by that 
                section; or
                    ``(ii) in a Joint Staff position that supported the 
                Joint Requirements Oversight Council prior to December 
                23, 2016, and that was determined to be no longer 
                needed as a result of section 925 of the National 
                Defense Authorization Act for Fiscal Year 2017 (Public 
                Law 114-328; 130 Stat. 2359) and the amendments made by 
                that section; and
            ``(B) the position described in subparagraph (A) is not 
        filled by the Office of the Under Secretary of Defense for 
        Acquisition and Sustainment or the Joint Staff after the 
        employee's permanent duty assignment.''.
    (b) Office of the Secretary of the Navy Maximum Number of 
Personnel.--Section 5014(f) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(6) The limitation in paragraph (1) may be exceeded if a civilian 
employee is assigned on permanent duty in the Department of the Navy or 
assigned or detailed to permanent duty in the Office of the Secretary 
of the Navy, the Office of Chief of Naval Operations, or the 
Headquarters, Marine Corps and--
            ``(A) the employee was employed immediately preceding that 
        assignment either--
                    ``(i) in a position within the Office of the Under 
                Secretary of Defense for Acquisition, Technology, and 
                Logistics that had responsibility for oversight of 
                acquisition programs or processes prior to February 1, 
                2018, and that was determined to be no longer needed as 
                a result of section 901 of the National Defense 
                Authorization Act for Fiscal Year 2017 (Public Law 114-
                328; 130 Stat. 2339) and the amendments made by that 
                section; or
                    ``(ii) in a Joint Staff position that supported the 
                Joint Requirements Oversight Council prior to December 
                23, 2016, and that was determined to be no longer 
                needed as a result of section 925 of the National 
                Defense Authorization Act for Fiscal Year 2017 (Public 
                Law 114-328; 130 Stat. 2359) and the amendments made by 
                that section; and
            ``(B) the position described in subparagraph (A) is not 
        filled by the Office of the Under Secretary of Defense for 
        Acquisition and Sustainment or the Joint Staff after the 
        employee's permanent duty assignment.''.
    (c) Office of the Secretary of the Air Force Maximum Number of 
Personnel.--Section 8014(f) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(6) The limitation in paragraph (1) may be exceeded if a civilian 
employee is assigned on permanent duty in the Office of the Secretary 
of the Air Force or on the Air Staff and--
            ``(A) the employee was employed immediately preceding that 
        assignment either--
                    ``(i) in a position within the Office of the Under 
                Secretary of Defense for Acquisition, Technology, and 
                Logistics that had responsibility for oversight of 
                acquisition programs or processes prior to February 1, 
                2018, and that was determined to be no longer needed as 
                a result of section 901 of the National Defense 
                Authorization Act for Fiscal Year 2017 (Public Law 114-
                328; 130 Stat. 2339) and the amendments made by that 
                section; or
                    ``(ii) in a Joint Staff position that supported the 
                Joint Requirements Oversight Council prior to December 
                23, 2016, and that was determined to be no longer 
                needed as a result of section 925 of the National 
                Defense Authorization Act for Fiscal Year 2017 (Public 
                Law 114-328; 130 Stat. 2359) and the amendments made by 
                that section; and
            ``(B) the position described in subparagraph (A) is not 
        filled by the Office of the Under Secretary of Defense for 
        Acquisition and Sustainment or the Joint Staff after the 
        employee's permanent duty assignment.''.

                  TITLE IV--TRANSPARENCY IMPROVEMENTS

SEC. 401. TRANSPARENCY OF DEFENSE BUSINESS SYSTEM DATA.

    (a) Establishment of Common Enterprise Data Structures.--Section 
2222 of title 10, United States Code, is amended--
            (1) in subsection (d), by adding at the end the following 
        new paragraph:
            ``(7) Policy requiring that any data contained in a defense 
        business system are an asset of the Department of Defense, and 
        that such data should be made readily available to all members 
        of the Office of the Secretary of Defense, the Joint Staff, and 
        the military departments (except as otherwise provided by law 
        or regulation).'';
            (2) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(5) Common enterprise data structures.--(A) The defense 
        business enterprise architecture shall include one or more 
        common enterprise data structures which can be used to code 
        data that are automatically extracted from the relevant defense 
        business systems to facilitate Department of Defense-wide 
        analysis and management of such data.
            ``(B) The Deputy Chief Management Officer shall--
                    ``(i) in consultation with the Defense Business 
                Council established under subsection (f), develop one 
                or more common enterprise data structures; and
                    ``(ii) have primary decision-making authority with 
                respect to the development of any such common 
                enterprise data structure.
            ``(C) The Director of Cost Assessment and Program 
        Evaluation shall--
                    ``(i) in consultation with the Defense Business 
                Council established under subsection (f), document and 
                maintain any common enterprise data structure developed 
                under subparagraph (B);
                    ``(ii) extract data from defense business systems 
                using the appropriate common data enterprise structure 
                on a specified schedule;
                    ``(iii) provide access to such data to the Office 
                of the Secretary of Defense, the Joint Staff, and the 
                military departments (except as otherwise provided by 
                law or regulation) on a specified schedule developed in 
                consultation with the Defense Business Council 
                established under subsection (f); and
                    ``(iv) have primary decision-making authority with 
                respect to the maintenance of any such common 
                enterprise data structure.
            ``(D) Common enterprise data structures shall be 
        established and maintained for the following types of data of 
        the Department of Defense:
                    ``(i) An accounting of expenditures of the 
                Department of Defense, set forth separately for each 
                type of expenditure.
                    ``(ii) Program and budget data in the defense 
                business systems of the Under Secretary of Defense 
                (Comptroller) and the Director of Cost Assessment and 
                Program Evaluation.
                    ``(iii) Acquisition cost data and earned value 
                management data.
                    ``(iv) Operating and support costs for weapon 
                systems, including data on maintenance procedures 
                conducted on each major weapon system (as defined in 
                section 2379 of this title).
                    ``(v) An accounting of contracting activities, 
                including goods and services acquired and associated 
                obligations and expenditures.
            ``(E) The Secretary of Defense, the Chairman of the Joint 
        Chiefs of Staff, the Secretaries of the military departments, 
        the Commanders of the combatant commands, the heads of the 
        Defense Agencies, the heads of the Department of Defense Field 
        Activities, and the heads of all other organizations of the 
        Department of Defense shall provide access to the relevant 
        defense business system of such department, combatant command, 
        Defense Agency, Field Activity, or organization, as applicable, 
        for purposes of automatically populating data sets coded with 
        common enterprise data structures.'';
            (3) in subsection (f)(2), by adding at the end the 
        following new clause:
                            ``(iv) The Director of Cost Assessment and 
                        Program Evaluation with respect to common 
                        enterprise data structures.''; and
            (4) in subsection (i), by adding at the end the following 
        new paragraph:
            ``(10) Common enterprise data structure.--The term `common 
        enterprise data structure' means a mapping and organization of 
        data from defense business systems into a common data set.''.
    (b) Additional Duties of the Director of Cost Assessment and 
Program Evaluation.--Section 139a(d) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
            ``(9) Maintenance of common enterprise data structures 
        established pursuant to section 2222 of this title, including 
        establishing and maintaining access to any data contained in a 
        defense business system (as defined in such section) and used 
        in a common enterprise data structure, as determined 
        appropriate by the Secretary of Defense or the Director of Cost 
        Assessment and Program Evaluation.''.

SEC. 402. MAJOR DEFENSE ACQUISITION PROGRAMS: DISPLAY OF BUDGET 
              INFORMATION.

    (a) In General.--Chapter 144 of title 10, United States Code, is 
amended by inserting after section 2433a the following new section:
``Sec. 2434. Major defense acquisition programs: display of budget 
              information
    ``(a) In General.--In the defense budget materials for fiscal year 
2020 and each subsequent fiscal year, the Secretary of Defense shall 
ensure that the funding requirements listed in subsection (b) are 
displayed separately for major defense acquisition programs, as defined 
in section 2340 of title 10, United States Code.
    ``(b) Requirements for Budget Display.--The budget justification 
display for a fiscal year shall include the funding requirement for 
each major defense acquisition program, including all sources of 
appropriations--
            ``(1) for developmental test and evaluation;
            ``(2) for operational test and evaluation;
            ``(3) for the purchase of cost data from contractors; and
            ``(4) for the purchase or license of technical data.
    ``(c) Definitions.--In this section, the terms `budget' and 
`defense budget materials' have the meaning given those terms in 
section 234 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2433a following new item:

``2434. Major defense acquisition programs: display of budget 
                            information.''.

SEC. 403. ENHANCEMENTS TO TRANSPARENCY IN TEST AND EVALUATION PROCESSES 
              AND DATA.

    (a) Additional Requirements Relating to Designation of a Major 
Defense Acquisition Program.--Section 139 of title 10, United States 
Code, is amended--
            (1) in subsection (a)(2)(B), by inserting before the period 
        at the end the following: ``and in accordance with subsection 
        (l).'';
            (2) by adding at the end the following new subsection:
    ``(l) For purposes of subsection (a)(2)(B), before designating a 
program that is not a major defense acquisition program for the 
purposes of section 2430 of this title as a major defense acquisition 
program for the purposes of this section, the Director shall provide in 
writing to the Under Secretary of Defense for Acquisition and 
Sustainment, and the test and evaluation executive of the military 
department or departments executing the program, the specific 
circumstances of the program that led to the designation decision.''; 
and
            (3) by adding at the end of subsection (h)(4) the 
        following: ``The report shall also include a brief statement of 
        the rationale for placing on the oversight list of the Director 
        each program that is not a major defense acquisition program 
        for the purposes of section 2430 of this title but has been 
        designated as a major defense acquisition program for the 
        purposes of this section.''.
    (b) Consideration of Legacy Items or Components in Operational Test 
and Evaluation Reports.--Section 2399(b)(2) of title 10, United States 
Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (A)(ii);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) a description of the performance of the items or 
        components tested in relation to comparable legacy items or 
        components, if such items or components exist and relevant data 
        are available without requiring additional testing; and''.
    (c) Opportunity for Military Department Comments on Annual Report 
on Operational Test and Evaluation.--Section 139(h) of title 10, United 
States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6), and in 
        that paragraph by striking ``and the Secretaries of the 
        military departments''; and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) Within 45 days after the submission of an annual 
        report by the Director to Congress, the Secretaries of the 
        military departments may each submit a report to the 
        congressional defense committees addressing any concerns 
        related to information included in the annual report, or 
        providing updated or additional information as appropriate.''.
    (d) Guidelines for Collection of Cost Data on Test and 
Evaluation.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Director of Operational Test and 
        Evaluation shall develop policies, procedures, guidance, and a 
        collection method to ensure that consistent, high quality data 
        are collected on the full range of estimated and actual 
        developmental, live fire, and operational testing costs for 
        major defense acquisition programs. Data on estimated and 
        actual developmental, live fire, and operational testing costs 
        shall be maintained in an electronic database maintained by the 
        Director for Cost Assessment and Program Evaluation.
            (2) Concurrence and coordination.--In carrying out 
        paragraph (1), the Director of Operational Test and Evaluation 
        shall obtain the concurrence of the Director for Cost 
        Assessment and Program Evaluation and shall coordinate with the 
        senior Department of Defense official with responsibility for 
        developmental testing, the Director of the Test Resource 
        Management Center, and the Secretaries of the military 
        departments.
            (3) Major defense acquisition program defined.--In this 
        section, the term ``major defense acquisition program'' has the 
        meaning provided in section 2430 of title 10, United States 
        Code.
    (e) Report on Enterprise Approach To Test and Evaluation Knowledge 
Management.--
            (1) Report required.--Within one year after the date of the 
        enactment of this Act, the Director of the Test Resource 
        Management Center and the senior Department of Defense official 
        with responsibility for developmental testing shall provide to 
        the congressional defense committees a report on the 
        development of an enterprise approach to test and evaluation 
        knowledge management.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following elements:
                    (A) The detailed concepts, requirements, 
                technologies, methodologies, and architecture necessary 
                for an enterprise approach to knowledge management for 
                test and evaluation.
                    (B) Resources needed to develop and adopt an 
                enterprise approach to knowledge management for test 
                and evaluation.
                    (C) Roles and responsibilities of various 
                Department of Defense entities to develop and adopt an 
                enterprise approach to knowledge management for test 
                and evaluation.
                    (D) Timeframes required to develop and adopt an 
                enterprise approach to knowledge management for test 
                and evaluation.
                    (E) A description of pilot studies ongoing at the 
                time of the date of the enactment of this Act or 
                previously conducted related to developing an 
                enterprise approach to test and evaluation knowledge 
                management, including results of the pilot studies (if 
                available) and lessons learned.
                                 <all>