1.This Act may be cited as the
Implementing Management for
Performance and Related Reforms to Obtain Value in Every Acquisition Act of
2010
.
2.Definition of
congressional defense committeesIn this Act, the term congressional
defense committees
has the meaning given that term in
section
101(a)(16) of title 10, United States Code.
3.The table of contents
for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Definition of congressional defense
committees.
Sec. 3. Table of contents.
Title I—Defense Acquisition System
Sec. 101. Performance management of the defense acquisition
system.
Sec. 102. Meaningful consideration by Joint Requirements
Oversight Council of input from certain officials.
Sec. 103. Performance management for the Joint Capabilities
Integration and Development System.
Sec. 104. Requirements for the acquisition of
services.
Sec. 105. Joint evaluation task forces.
Sec. 106. Review of defense acquisition guidance.
Sec. 107. Requirement to include references to services
acquisition throughout the Federal Acquisition Regulation.
Sec. 108. Procurement of military purpose nondevelopmental
items.
Title II—Defense Acquisition Workforce
Sec. 201. Acquisition workforce excellence.
Sec. 202. Amendments to the acquisition workforce demonstration
project.
Sec. 203. Incentive programs for civilian and military
personnel in the acquisition workforce.
Sec. 204. Career development for civilian and military
personnel in the acquisition workforce.
Sec. 205. Recertification and training
requirements.
Sec. 206. Information technology acquisition
workforce.
Sec. 207. Definition of acquisition workforce.
Sec. 208. Defense Acquisition University curriculum
review.
Sec. 209. Cost estimating internship and scholarship
programs.
Sec. 210. Prohibition on personal services contracts for senior
mentors.
Title III—Financial Management
Sec. 301. Incentives for achieving auditability.
Sec. 302. Measures required after failure to achieve
auditability.
Sec. 303. Review of obligation and expenditure
thresholds.
Sec. 304. Disclosure and traceability of the cost of Department
of Defense health care contracts.
Title IV—Industrial Base
Sec. 401. Expansion of the industrial base.
Sec. 402. Commercial pricing analysis.
Sec. 403. Contractor and grantee disclosure of delinquent
Federal tax debts.
Sec. 404. Independence of contract audits and business system
reviews.
Sec. 405. Blue ribbon panel on eliminating barriers to
contracting with the Department of Defense.
Sec. 406. Inclusion of the providers of services and
information technology in the national technology and industrial
base.
Sec. 407. Construction of Act on competition requirements for
the acquisition of services.
Sec. 408. Acquisition Savings Program.
Sec. 409. Sense of Congress regarding compliance with the Berry
Amendment, the Buy American Act, and labor standards of the United
States.
Sec. 410. Industrial Base Council and Fund.
Title V—Other matters
Sec. 501. Clothing allowance requirement.
Sec. 502. Requirement that cost or price to the Federal
Government be given at least equal importance as technical or other criteria in
evaluating competitive proposals for defense contracts.
<enum>I</enum><header>Defense
Acquisition System</header>
<section id="HEAD34ED6BFAB4220A30934D30B60BF89"><enum>101.</enum><header>Performance
management of the defense acquisition system</header>
<subsection id="HED2E63E132814168BEF3E3426B6E5EE7"><enum>(a)</enum><header>Performance
management of the defense acquisition system</header>
<paragraph id="H022F5144BA804CB4888FF562950DA421"><enum>(1)</enum><header>In
general</header><text>Part IV of title 10, United States Code, is amended by
inserting after chapter 148 the following new chapter:</text>
<quoted-block display-inline="no-display-inline" id="H56AE457F8F264D259FDC5E89BBB8931E" style="USC">
<chapter id="H829D75CEDA844FCD9924505CBF9DA257"><enum>149</enum><header>Performance
Management of the Defense Acquisition System </header>
<toc container-level="chapter-container" idref="H829D75CEDA844FCD9924505CBF9DA257" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HE27007CC08854CD9B1C00E1719EFF5DA" level="section">Sec.</toc-entry>
<toc-entry level="section">2545. Performance assessments of the
defense acquisition system. </toc-entry>
<toc-entry idref="H4871F0B734294629BBD7CA21F92DE6F2" level="section">2546. Audits of performance assessments.</toc-entry>
<toc-entry idref="H55A7B927A3EB43A1A5F7759CF25FED3D" level="section">2547. Use of performance assessments for managing
performance.</toc-entry>
<toc-entry idref="HF6E98950D55041768CB2939906FEE63F" level="section">2548. Acquisition-related functions of the Chiefs of Staff of
the armed forces.</toc-entry>
</toc>
<section id="HE27007CC08854CD9B1C00E1719EFF5DA"><enum>2545.</enum><header>Performance
assessments of the defense acquisition system</header>
<subsection id="HD5E0A0ABA5794D8A92D5BD471C17AD99"><enum>(a)</enum><header>Performance
assessments required</header><paragraph commented="no" display-inline="yes-display-inline" id="H76E89BE7D8F14235B96BD2F4B17749C1"><enum>(1)</enum><text>The Secretary of Defense
shall ensure that all elements of the defense acquisition system are subject to
regular performance assessments—</text>
<subparagraph id="HC61E1D7E7A37449982530180816C38A2" indent="up1"><enum>(A)</enum><text>to determine the extent to which such
elements deliver appropriate value to the Department of Defense; and</text>
</subparagraph><subparagraph id="H2A415FCD71684061A27D521DD0AAA6EC" indent="up1"><enum>(B)</enum><text>to enable senior officials of the
Department of Defense to manage the elements of the defense acquisition system
to maximize their value to the Department.</text>
</subparagraph></paragraph><paragraph id="HADEEDA5B1E674F07BAC866A66F46CB70" indent="up1"><enum>(2)</enum><text>The performance of each element of
the defense acquisition system shall be assessed as needed, but not less often
than annually.</text>
</paragraph><paragraph id="HD11F0EC5B4ED4072B76E57224164D08A" indent="up1"><enum>(3)</enum><text>The Secretary shall ensure that the
performance assessments required by this subsection are appropriately tailored
to reflect the diverse nature of defense acquisition so that the performance
assessment of each element of the defense acquisition system accurately
reflects the work performed by such element.</text>
</paragraph></subsection><subsection id="HE25D0E2702F44DDE917FB7451E40F1C5"><enum>(b)</enum><header>Systemwide
categories</header><paragraph commented="no" display-inline="yes-display-inline" id="H25635C8E77684EE296373F2137BF0356"><enum>(1)</enum><text>The Secretary of Defense
shall establish categories of metrics for the defense acquisition system,
including, at a minimum, categories relating to cost, quality, delivery,
workforce, and policy implementation that apply to all elements of the defense
acquisition system.</text>
</paragraph><paragraph id="H0F08A451836D4AA797151FF9F3419C02" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary of Defense shall issue
guidance for service acquisition executives within the Department of Defense on
the establishment of metrics, and goals and standards relating to such metrics,
within the categories established by the Secretary under paragraph (1) to
ensure that there is sufficient uniformity in performance assessments across
the defense acquisition system so that elements of the defense acquisition
system can be meaningfully compared.</text>
</paragraph></subsection><subsection id="H28013C15C35D47A09D7F44AB77E86F3E"><enum>(c)</enum><header>Metrics, goals,
and standards</header><paragraph commented="no" display-inline="yes-display-inline" id="HF5163C33ED954D9CBDCB13781976BC6E"><enum>(1)</enum><text>Each service acquisition
executive of the Department of Defense shall establish metrics to be used in
the performance assessments required by subsection (a) for each element of the
defense acquisition system for which such executive is responsible within the
categories established by the Secretary under subsection (b). Such metrics
shall be appropriately tailored pursuant to subsection (a)(3) and may include
measures of—</text>
<subparagraph id="HB9FD1A3411674805BE17A0B37F2C83D3" indent="up1"><enum>(A)</enum><text>cost, quality, and delivery;</text>
</subparagraph><subparagraph id="H4D9288BDD1AA4BB7A2FCD02FAC1B43AA" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">contractor performance, including
compliance with the Department of Defense policy regarding the participation of
small business concerns owned and controlled by socially and economically
disadvantaged individuals, veteran-owned small businesses, service-disabled,
veteran-owned small businesses, and women-owned small businesses;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H2F20F616002A4FE4BABA020A0E2285AC" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">excessive use of contract bundling and
availability of non-bundled contract vehicles;</text>
</subparagraph><subparagraph id="H7D750D9405D0451BBCCD620971B82E3E" indent="up1"><enum>(D)</enum><text>workforce quality and program manager
tenure (where applicable);</text>
</subparagraph><subparagraph id="H6A9632D793854760915CB01FACA53506" indent="up1"><enum>(E)</enum><text>the quality of market research;</text>
</subparagraph><subparagraph id="HF008FB2BA3314D1C8AD058EA87790FC2" indent="up1"><enum>(F)</enum><text>appropriate use of integrated
testing;</text>
</subparagraph><subparagraph commented="no" id="H2A42FCF164AD48098D14B4AD961E80C4" indent="up1"><enum>(G)</enum><text>appropriate consideration of long-term
sustainment and energy efficiency; and</text>
</subparagraph><subparagraph id="H217554EC7BE7497CB5BF3174425BA9BD" indent="up1"><enum>(H)</enum><text display-inline="yes-display-inline">appropriate acquisition of technical data
and other rights and assets necessary to support long-term sustainment.</text>
</subparagraph></paragraph><paragraph id="H51558A5754554A98B5D966A5907CEE79" indent="up1"><enum>(2)</enum><text>Each service acquisition executive
within the Department of Defense shall establish goals and standards
(including, at a minimum, a threshold standard and an objective goal) for each
metric established under paragraph (1) by the executive. In establishing the
goals and standards for an element of the defense acquisition system, a service
acquisition executive shall consult with the head of the element to the maximum
extent practicable, but the service acquisition executive shall retain the
final authority to determine the goals and standards established. The service
acquisition executive shall update the goals and standards as necessary and
appropriate consistent with the guidance issued under subsection (b)(2).</text>
</paragraph><paragraph id="HAB5145A7360F4BBFBD1B004B3B461916" indent="up1"><enum>(3)</enum><text>The Under Secretary of Defense for
Acquisition, Technology, and Logistics shall periodically review the metrics,
goals, and standards established by service acquisition executives under this
subsection to ensure that they are consistent with the guidance issued under
subsection (b)(2).</text>
</paragraph></subsection><subsection id="H4674DC8C930944C58A4D6FA74B9A9CEC"><enum>(d)</enum><header>Responsibility
for oversight and direction of performance assessments</header><paragraph commented="no" display-inline="yes-display-inline" id="H9C9AF7E4658D40C8A0E0886AEED16EAA"><enum>(1)</enum><text>Performance assessments
required by subsection (a) shall either be carried out by, or shall be subject
to the oversight of, the Director of the Office of Performance Assessment and
Root Cause Analysis. The authority and responsibility granted by this
subsection is in addition to any other authority or responsibility granted to
the Director of the Office of Performance Assessment and Root Cause Analysis by
the Secretary of Defense or by any other provision of law. In the performance
of duties pursuant to this section, the Director of the Office of Performance
Assessment and Root Cause Analysis shall coordinate with the Deputy Chief
Management Officer to ensure that performance assessments carried out pursuant
to this section are consistent with the performance management initiatives of
the Department of Defense.</text>
</paragraph><paragraph id="HD20A022F9FF44D5FA7230204ABAA2A19" indent="up1"><enum>(2)</enum><text>A performance assessment may be
carried out by an organization under the control of the service acquisition
executive of a military department if—</text>
<subparagraph id="HC66C9922A31E4C558FB2DEF354D314FA"><enum>(A)</enum><text>the assessment fulfills the
requirements of subsection (a);</text>
</subparagraph><subparagraph id="HF5C889239F2349F69B7C94B49F6E8DC6"><enum>(B)</enum><text>the organization is approved to carry
out the assessment by the Director of the Office of Performance Assessment and
Root Cause Analysis; and</text>
</subparagraph><subparagraph id="H0745DA03446244C0B68D1B8798B2F5C3"><enum>(C)</enum><text>the assessment is subject to the
oversight of the Director of the Office of Performance Assessment and Root
Cause Analysis in accordance with paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="H48949DD87EC940C482DC043404613365"><enum>(e)</enum><header>Retention and
access to records of performance assessments within the military departments
and defense agencies</header><text display-inline="yes-display-inline">The
Secretary of Defense shall ensure that information from performance assessments
of all elements of the defense acquisition system are retained electronically
and that the Director of the Office of Performance Assessment and Root Cause
Analysis—</text>
<paragraph id="H04D6423660B342E6A5C176BADE445CC4"><enum>(1)</enum><text>promptly receives
the results of all performance assessments conducted by an organization under
the control of the service acquisition executive of a military department;
and</text>
</paragraph><paragraph id="H46FCD2F033794CEF9D95B403579BAA8A"><enum>(2)</enum><text>has timely access
to any records and data in the Department of Defense (including the records and
data of each military department and Defense Agency and including classified
and proprietary information) that the Director considers necessary to review in
order to perform or oversee performance assessments pursuant to this
section.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H47428101D3494414B47654FF18BBCA55"><enum>(f)</enum><header>Inclusion in
annual report</header><text display-inline="yes-display-inline">The Director of
the Office of Performance Assessment and Root Cause Analysis shall include
information on the activities undertaken by the Director under this section in
the annual report of the Director required under section 103(f) of the Weapon
Systems Acquisition Reform Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/23">Public Law 111–23</external-xref>; 123 Stat. 1716),
including information on any performance assessment required by subsection (a)
with significant findings. In addition, if a performance assessment uncovers
particularly egregious problems, as identified by the Director, the Director
shall submit to the Committees on Armed Services of the Senate and the House of
Representatives a report on such problems within 30 days after the problems are
identified.</text>
</subsection><subsection id="H8F39F8A2E5034799AA2503E33D6513AE"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HB595AD3945E04892A309F3BFF4D3AD2F"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>defense acquisition
system</quote> means the acquisition workforce; the process by which the
Department of Defense manages the acquisition of goods and services, including
weapon systems, commodities, commercial and military unique services, and
information technology; and the management structure for carrying out the
acquisition function within the Department of Defense.</text>
</paragraph><paragraph id="H24B1355D6ECE4622A65CEBAC71A8FF04"><enum>(2)</enum><text>The term
<quote>element of the defense acquisition system</quote> means an organization
that operates within the defense acquisition system and that focuses primarily
on acquisition.</text>
</paragraph><paragraph id="H8A55C6118E524F54AFAA378F9D149D25"><enum>(3)</enum><text>The term
<quote>metric</quote> means a specific measure that serves as a basis for
comparison.</text>
</paragraph><paragraph id="H0ABB5CB3A0B6488BB88922BACAC68113"><enum>(4)</enum><text>The term
<quote>threshold performance standard</quote> means the minimum acceptable
level of performance in relation to a metric.</text>
</paragraph><paragraph id="H77ADA35E86934794A5BAA0310919C260"><enum>(5)</enum><text>The term
<quote>objective performance goal</quote> means the most desired level of
performance in relation to a metric.</text>
</paragraph><paragraph id="HD63DE911400F40ABAA4E6743424E6536"><enum>(6)</enum><text>The term
<quote>Office of Performance Assessment and Root Cause Analysis</quote> means
the office reporting to the senior official designated by the Secretary of
Defense under section 103(a) of the Weapon Systems Acquisition Reform Act of
2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/23">Public
Law 111–23</external-xref>,
<external-xref legal-doc="usc" parsable-cite="usc/10/2430">10 U.S.C.
2430</external-xref> note).</text>
</paragraph></subsection></section><section id="H4871F0B734294629BBD7CA21F92DE6F2"><enum>2546.</enum><header>Audits of
performance assessments</header>
<subsection id="H321EF6B2C5ED4EBBA45F49928A1D5FA4"><enum>(a)</enum><header>Audits
required</header><text>The Secretary of Defense shall ensure that the
performance assessments of the defense acquisition system required by section
2545 of this title are subject to periodic audits to determine the accuracy,
reliability, and completeness of such assessments.</text>
</subsection><subsection id="H794FBF1945AF46B4BED954CEAD0F0993"><enum>(b)</enum><header>Standards and
approach</header><text>In performing the audits required by subsection (a), the
Secretary shall ensure that such audits—</text>
<paragraph id="HF53606111C334980AE9C76324C9D2106"><enum>(1)</enum><text>comply with
generally accepted government auditing standards issued by the Comptroller
General;</text>
</paragraph><paragraph id="H9898F7C24357442ABA8F5B8E43BCB391"><enum>(2)</enum><text>use a risk-based
approach to audit planning; and</text>
</paragraph><paragraph id="H21939D93DD0A46B8839584256389B125"><enum>(3)</enum><text display-inline="yes-display-inline">appropriately account for issues associated
with auditing assessments of activities occurring in a contingency
operation.</text>
</paragraph></subsection></section><section id="H55A7B927A3EB43A1A5F7759CF25FED3D"><enum>2547.</enum><header>Use of
performance assessments for managing performance</header>
<subsection id="HD8A11FF4D5674F8CB1F902AE72D1E9F3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Defense shall ensure that the results of performance assessments are used in
the management of elements of the defense acquisition system through direct
linkages between the results of a performance assessment and the
following:</text>
<paragraph id="H85FC243B591F4FBC9953BCD696632247"><enum>(1)</enum><text>The size of the
bonus pool available to the workforce of an element of the defense acquisition
system.</text>
</paragraph><paragraph id="HD0413B54C4504F5BB643942C71B6084E"><enum>(2)</enum><text>Rates of promotion
in the workforce of an element of the defense acquisition system.</text>
</paragraph><paragraph id="HFAE548B9D35443C1A9872B8693E730C6"><enum>(3)</enum><text>Awards for
acquisition excellence.</text>
</paragraph><paragraph id="HBE0813D6542C4F199B0BDE68D935B077"><enum>(4)</enum><text>The scope of work
assigned to an element of the defense acquisition system.</text>
</paragraph></subsection><subsection id="H359FC70571F44258BB5E4899D246B16D"><enum>(b)</enum><header>Additional
requirements</header><text display-inline="yes-display-inline">The Secretary of
Defense shall ensure that actions taken to manage the acquisition workforce
pursuant to subsection (a) are undertaken in accordance with the requirements
of subsections (c) and (d) of section 1701a of this title.</text>
</subsection></section><section id="HF6E98950D55041768CB2939906FEE63F"><enum>2548.</enum><header>Acquisition-related
functions of the Chiefs of Staff of the armed forces</header>
<subsection id="HFB104C227D8145B2B1D90BBC609C9C5B"><enum>(a)</enum><header>Assistance</header><text display-inline="yes-display-inline">The Secretary of Defense shall ensure,
notwithstanding section 3014(c)(1)(A), section 5014(c)(1)(A), and section
8014(c)(1)(A) of this title, that the Chief of Staff of the Army, the Chief of
Naval Operations, the Chief of Staff of the Air Force, and the Commandant of
the Marine Corps assist the Secretary of the military department concerned in
the performance of the following acquisition-related functions of such
department:</text>
<paragraph id="H3320DED861854F7E88B3D4B3A25D8AC1"><enum>(1)</enum><text>The development of
requirements relating to the defense acquisition system.</text>
</paragraph><paragraph id="H8C5225D7A7B04431BE1E891E677824C6"><enum>(2)</enum><text>The development of
measures to control requirements creep in the defense acquisition
system.</text>
</paragraph><paragraph id="HEC683D097CC14B5CBF5001C8DC1DB06B"><enum>(3)</enum><text>The development of
career paths in acquisition for military personnel (as required by section
1722a of this title).</text>
</paragraph><paragraph id="HFB445BFD9AB2448EA1B8ADDCEA3AA3E8"><enum>(4)</enum><text>The assignment and
training of contracting officer representatives when such representatives are
required to be members of the armed forces because of the nature of the
contract concerned.</text>
</paragraph></subsection><subsection id="HDF45E9E07DEE480B8B42C5514609F517"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H99848645196C476EB576BF961FD73354"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>requirements creep</quote>
means the addition of new technical or operational specifications after a
requirements document is approved.</text>
</paragraph><paragraph id="H1CE8BC4CE44C4DAF93DD352ABCB10B57"><enum>(2)</enum><text>The term
<quote>requirements document</quote> means a document produced in the
requirements process that is provided for an acquisition program to guide the
subsequent development, production, and testing of the program and that—</text>
<subparagraph id="H623335166A74415FB01E19EF478E6D8A"><enum>(A)</enum><text>justifies the need
for a materiel approach, or an approach that is a combination of materiel and
non-materiel, to satisfy one or more specific capability gaps;</text>
</subparagraph><subparagraph id="HDE9FE81CED794ECD948E1E8A102E41A2"><enum>(B)</enum><text>details the
information necessary to develop an increment of militarily useful,
logistically supportable, and technically mature capability, including key
performance parameters; or</text>
</subparagraph><subparagraph id="H8A4057CE9623415B93925463AB383447"><enum>(C)</enum><text>identifies
production attributes required for a single increment of a
program.</text>
</subparagraph></paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1CF90ABE0C2643FC9CAFEE35618E74E7"><enum>(2)</enum><header>Clerical
amendments</header><text display-inline="yes-display-inline">The table of
chapters at the beginning of subtitle A of title 10, United States Code, and at
the beginning of part IV of such subtitle, are each amended by inserting after
the item relating to chapter 148 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H98EBA970668D4949BDE03AE069D85EEF" style="USC">
<toc regeneration="no-regeneration">
<multi-column-toc-entry level="chapter"><toc-enum>149.</toc-enum><level-header level="chapter">Performance Management of the Defense Acquisition
System</level-header><target>2545</target></multi-column-toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H175643715D584FE0B940D88BE84FA7F1"><enum>(b)</enum><header>Phased
implementation of performance assessments</header><text display-inline="yes-display-inline">The Secretary of Defense shall implement
the requirements of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/149">chapter 149</external-xref> of title 10,
United States Code, as added by subsection (a), in a phased manner while
guidance is issued, and categories, metrics, goals, and standards are
established. Implementation shall begin with a cross section of elements of the
defense acquisition system representative of the entire system and shall be
completed for all elements not later than 2 years after the date of the
enactment of this Act.</text>
</subsection></section><section id="HC2ED056F322D48B1A23C8DBED2860F1F"><enum>102.</enum><header>Meaningful
consideration by Joint Requirements Oversight Council of input from certain
officials</header>
<subsection id="HA89A4419A07C4C629886933EA5B0A655"><enum>(a)</enum><header>Advisors to the
Joint Requirements Oversight Council</header>
<paragraph id="H35D1D1B73ABB489499C156F36577A18B"><enum>(1)</enum><header>Additional
civilian advisors</header><text display-inline="yes-display-inline">Subsection
(d)(1) of <external-xref legal-doc="usc" parsable-cite="usc/10/181">section
181</external-xref> of title 10, United States Code, is amended by striking
<quote>The Under Secretary</quote> and all that follows through <quote>and
expertise.</quote> and inserting the
following:</text>
<quoted-block display-inline="yes-display-inline" id="H87885FC1361E42DC9A0C864E4AB1092F" style="OLC">
<text>The following officials of the
Department of Defense shall serve as advisors to the Council on matters within
their authority and expertise:</text><subparagraph id="HDF86C9CCAC194A8DB7725B8B58914796" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">The Under Secretary of Defense for
Acquisition, Technology, and Logistics.</text>
</subparagraph><subparagraph id="H1D2AABD600C14B9E8B3AA74841E3BE28" indent="up1"><enum>(B)</enum><text>The Under Secretary of Defense
(Comptroller).</text>
</subparagraph><subparagraph id="HF378A2A802D24FCAADFA10E1F46DCD27" indent="up1"><enum>(C)</enum><text>The Under Secretary of Defense for
Policy.</text>
</subparagraph><subparagraph id="H8722184D8CF14089BED4FA262A519DCF" indent="up1"><enum>(D)</enum><text>The Director of Cost Assessment and
Program
Evaluation.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H2A6DAF65EA9C4BCBA8572B5076195835"><enum>(2)</enum><header>Role of
combatant commanders as members of the jroc</header><text>Paragraph (1) of
subsection (c) of such section is amended—</text>
<subparagraph id="H2BBE153BFAD34712BBCA5AB95C7F794C"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (D);</text>
</subparagraph><subparagraph id="H6CA562B2610540B3BC1484DCA1FB949F"><enum>(B)</enum><text>by striking the
period at the end of subparagraph (E) and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="HCE51FDACAC004F25AAA52918E8232500"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC0958A8096DF4873AD61B41A681B2D3A" style="OLC">
<subparagraph id="H200464A2A4AA423D9A778874A670274A"><enum>(F)</enum><text display-inline="yes-display-inline">when directed by the chairman, the
commander of any combatant command (or, as directed by that commander, the
deputy commander of that command) when matters related to the area of
responsibility or functions of that command will be under consideration by the
Council.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="HCC5E6694C5624FF68BDC06C7350994A7"><enum>(b)</enum><header>Amendment
related to report</header><text display-inline="yes-display-inline">Paragraph
(2) of section 105(c) of the Weapon Systems Acquisition Reform Act of 2009
(<external-xref legal-doc="public-law" parsable-cite="pl/111/23">Public Law
111–23</external-xref>; 123 Stat. 1718) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H378F9ACCD7214CF5A0970FDE9EF8F32D" style="OLC">
<paragraph id="H86B14DFAF2FF4EA9A0ABBEDADC8287EE"><enum>(2)</enum><header>Matters
covered</header><text>The report shall include, at a minimum, an assessment
of—</text>
<subparagraph id="H8CD03F2A0551422BB9ACC4E0D5B158FA"><enum>(A)</enum><text>the extent to
which the Council has effectively sought, and the commanders of the combatant
commands have provided, meaningful input on proposed joint military
requirements;</text>
</subparagraph><subparagraph id="H25FF944E651643E3B44483612B3CFACE"><enum>(B)</enum><text>the extent to
which the Council has meaningfully considered the input and expertise of the
Under Secretary of Defense for Acquisition, Technology, and Logistics in its
discussions;</text>
</subparagraph><subparagraph id="H4B5747BD37F2447185676B97FD2D7038"><enum>(C)</enum><text>the extent to
which the Council has meaningfully considered the input and expertise of the
Director of Cost Assessment and Program Evaluation in its discussions;</text>
</subparagraph><subparagraph id="H8D1F82FD241F4CD9ABD0B367E31CB661"><enum>(D)</enum><text>the quality and
effectiveness of efforts to estimate the level of resources needed to fulfill
joint military requirements; and</text>
</subparagraph><subparagraph id="H6B0BF461F83444EBB3E98F58AC90ED5D"><enum>(E)</enum><text>the extent to
which the Council has considered trade-offs among cost, schedule, and
performance
objectives.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H693095A9DC074DDDAD34EA535E9408CA"><enum>(c)</enum><header>Assessment of
independence of cost estimators and cost analysts required in next annual
report on cost assessment activities</header><text display-inline="yes-display-inline">In the next annual report prepared by the
Director of Cost Assessment and Program Evaluation under
<external-xref legal-doc="usc" parsable-cite="usc/10/2334">section
2334(e)</external-xref> of title 10, United States Code, the Director shall
include an assessment of whether and to what extent personnel responsible for
cost estimates or cost analysis developed by a military department or defense
agency for a major defense acquisition program are independent and whether
their independence or lack thereof affects their ability to generate reliable
cost estimates.</text>
</subsection></section><section display-inline="no-display-inline" id="H8A4D1F608EDE429B9E51087593E1A674"><enum>103.</enum><header>Performance
management for the Joint Capabilities Integration and Development
System</header>
<subsection id="H879BF46047374C1E93D02C1E4CD6A250"><enum>(a)</enum><header>Requirement for
program</header><text>The Secretary of Defense shall ensure that the Department
of Defense develops and implements a program to manage performance in
establishing joint military requirements pursuant to
<external-xref legal-doc="usc" parsable-cite="usc/10/181">section
181</external-xref> of title 10, United States Code.</text>
</subsection><subsection id="HB217D4953E8D447BADA12E0A4E84DB89"><enum>(b)</enum><header>Leaders</header><text>The
Secretary of Defense shall designate an officer identified or designated as a
joint qualified officer to serve as leader of a joint effort to develop the
performance management program required by subsection (a). The Secretary shall
also designate an officer from each Armed Force to serve as leader of the
effort within the Armed Force concerned. Officers designated pursuant to this
section shall have the seniority and authority necessary to oversee and direct
all personnel engaged in establishing joint military requirements within the
Joint Staff or within the Armed Force concerned.</text>
</subsection><subsection id="H0CF23FC63DFA4DC196B55B4F52997ECA"><enum>(c)</enum><header>Matters
covered</header><text>The program developed pursuant to subsection (a)
shall:</text>
<paragraph id="H3F70E5FE90454674AEB49DA6F4653029"><enum>(1)</enum><text>Measure the
following in relation to each joint military requirement:</text>
<subparagraph id="H8AF729EC7C6A46C0B6978EFEC0D0C0D5"><enum>(A)</enum><text display-inline="yes-display-inline">The time a requirements document takes to
receive validation through the requirements process.</text>
</subparagraph><subparagraph id="HEF8E5D13F8914F7DB3898D9428DF8769"><enum>(B)</enum><text display-inline="yes-display-inline">The quality of cost information associated
with the requirement and the extent to which cost information was considered
during the requirements process.</text>
</subparagraph><subparagraph id="H04859B8B71C84215B12AFE135F7D3830"><enum>(C)</enum><text>The extent to
which the requirements process established a meaningful level of priority for
the requirement.</text>
</subparagraph><subparagraph id="H88342C714CFA4F078CE80078C41E52AC"><enum>(D)</enum><text>The extent to
which the requirements process considered trade-offs between cost, schedule,
and performance objectives.</text>
</subparagraph><subparagraph id="H6BBCE7609DB5461BB3B3B69D83748F58"><enum>(E)</enum><text display-inline="yes-display-inline">The quality of information on sustainment
associated with the requirement and the extent to which sustainment information
was considered during the requirements process.</text>
</subparagraph><subparagraph id="HE29E696BFC7D455CBD0527AFB4CE6450"><enum>(F)</enum><text>Such other matters
as the Secretary shall determine appropriate.</text>
</subparagraph></paragraph><paragraph id="H88513440948745B4842B996D4D5D9785"><enum>(2)</enum><text>Achieve, to the
maximum extent practicable, the following outcomes in the requirements
process:</text>
<subparagraph id="H7DB1E566BB7B4D9A9FD0DFEF342D5F79"><enum>(A)</enum><text>Timeliness in
delivering capability to the warfighter.</text>
</subparagraph><subparagraph id="H6C447B91C5E34ABAA3282A53A4C9B682"><enum>(B)</enum><text>Mechanisms for
controlling requirements creep.</text>
</subparagraph><subparagraph id="H3B91F0E4A1ED4DD7A6D29044E3BC9462"><enum>(C)</enum><text display-inline="yes-display-inline">Responsiveness to fact-of-life changes
occurring after the approval of a requirements document, including changes to
the threat environment, the emergence of new capabilities, or changes in the
resources estimated to procure or sustain a capability.</text>
</subparagraph><subparagraph id="HFA96154F911741FF8F3962FBE76B445D"><enum>(D)</enum><text>The development of
the personnel skills, capacity, and training needed for an effective and
efficient requirements process.</text>
</subparagraph><subparagraph id="H1F2D0288091C46E9BD69B1E970F5E4C7"><enum>(E)</enum><text>Such other
outcomes as the Secretary shall determine appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="HF56DA7BBEFA54B9AACF80704A666390E"><enum>(d)</enum><header>Implementation</header><text display-inline="yes-display-inline">The program required by subsection (a)
shall be developed and initially implemented not later than 1 year after the
date of the enactment of this Act and shall apply to requirements documents
entering the requirements process after the date of initial
implementation.</text>
</subsection><subsection id="H54B693313E8846129B028573E495DF43"><enum>(e)</enum><header>Initial
report</header><text>Not later than 90 days after the initial implementation of
the program required by subsection (a), the Secretary shall submit to the
congressional defense committees a report on the steps taken to develop and
implement the performance management program for joint military requirements.
The report shall address the measures specified in subsection (c)(1).</text>
</subsection><subsection id="H33A5E66607B8479C96ED9B467D95536F"><enum>(f)</enum><header>Final
report</header><text>Not later than 4 years after the initial implementation of
the program required by subsection (a), the Secretary shall submit to the
congressional defense committees a report on the effectiveness of the program
for joint military requirements in achieving the outcomes specified in
subsection (c)(2).</text>
</subsection><subsection display-inline="no-display-inline" id="H9F6E056BC5BF46DC8096CFDC92A3FC20"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H92E1BC758BCE4A41B90C9A12B32D0BFC"><enum>(1)</enum><header>Requirements
process</header><text>The term <quote>requirements process</quote> means the
Joint Capabilities Integration and Development System (JCIDS) process or any
successor to such process established by the Chairman of the Joint Chiefs of
Staff to support the statutory responsibility of the Joint Requirements
Oversight Council in advising the Chairman and the Secretary of Defense in
identifying, assessing, and validating joint military capability needs, with
their associated operational performance criteria, in order to successfully
execute missions.</text>
</paragraph><paragraph id="H5568E0348BF14F99B5FF799069539142"><enum>(2)</enum><header>Requirements
document</header><text display-inline="yes-display-inline">The term
<quote>requirements document</quote> means a document produced in the
requirements process that is provided for an acquisition program to guide the
subsequent development, production, and testing of the program and that—</text>
<subparagraph id="H0E585A8E043942249977C45EF2BD5788"><enum>(A)</enum><text>justifies the need
for a materiel approach, or an approach that is a combination of materiel and
non-materiel, to satisfy one or more specific capability gaps;</text>
</subparagraph><subparagraph id="H10F813BD3D464496962B253654263ACD"><enum>(B)</enum><text>details the
information necessary to develop an increment of militarily useful,
logistically supportable, and technically mature capability, including key
performance parameters; or</text>
</subparagraph><subparagraph id="HED6C174C55B24ED7A2D6E5C92C824318"><enum>(C)</enum><text>identifies
production attributes required for a single increment of a program.</text>
</subparagraph></paragraph><paragraph id="HBE77AE9B00CD4F308E4DDC631B7E995D"><enum>(3)</enum><header>Requirements
creep</header><text>The term <quote>requirements creep</quote> means the
addition of new technical or operational specifications after a requirements
document is approved.</text>
</paragraph></subsection><subsection id="H6C893148636F45E1AB90707D67F23983"><enum>(h)</enum><header>Discretionary
implementation after 5 years</header><text>After the date that is 5 years after
the initial implementation of the performance management program under this
section, the requirement to implement a program under this section shall be at
the discretion of the Secretary of Defense.</text>
</subsection></section><section display-inline="no-display-inline" id="HFE425156C03B478E9489320415D3CBA9" section-type="subsequent-section"><enum>104.</enum><header>Requirements for the
acquisition of services</header>
<subsection id="H1A139E76C70944799ECF00F5DFD19AB4"><enum>(a)</enum><header>Process
required</header><text display-inline="yes-display-inline">The Secretary of
Defense shall ensure that each military department establishes a process for
identifying, assessing, and approving requirements for the acquisition of
services, and that commanders of unified combatant commands and other officers
identified or designated as joint qualified officers have an opportunity to
participate in the process of each military department to provide input on
joint requirements for the acquisition of services.</text>
</subsection><subsection id="HEF6DAE2741E44009888E2A8C1AAE6085"><enum>(b)</enum><header>Guidance and
plan required</header><text display-inline="yes-display-inline">The Chief of
Staff of the Army, the Chief of Naval Operations, the Chief of Staff of the Air
Force, and the Commandant of the Marine Corps shall—</text>
<paragraph id="HC10C507E37A94493B974B6A62F4A2477"><enum>(1)</enum><text>issue and maintain
guidance relating to each process established under subsection (a); and</text>
</paragraph><paragraph id="H220D53B583404E72A3DD08E6C40C9DE5"><enum>(2)</enum><text display-inline="yes-display-inline">develop a plan to implement each process
established under subsection (a).</text>
</paragraph></subsection><subsection id="HB847E589A098471D8D8156787EA1089D"><enum>(c)</enum><header>Matters required
in guidance</header><text>The guidance issued under subsection (b) shall
establish, in relation to a process for identifying, assessing, and approving
requirements for the acquisition of services, the following:</text>
<paragraph id="H8CC2321C85DE4E5398037AA5B6653693"><enum>(1)</enum><text>Organization of
such process.</text>
</paragraph><paragraph id="H03FCE63B2A5D476697C575F91ED1A4EB"><enum>(2)</enum><text display-inline="yes-display-inline">The level of command responsibility
required for identifying and validating requirements for the acquisition of
services in accordance with the categories established under
<external-xref legal-doc="usc" parsable-cite="usc/10/2330">section
2330(a)(1)(C)</external-xref> of title 10, United States Code.</text>
</paragraph><paragraph id="HB2B71DAEDCC943F9867265A1A4694D0B"><enum>(3)</enum><text>The composition of
billets necessary to operate such process.</text>
</paragraph><paragraph id="H52660182ADA84142B6EFDEA00A9462C2"><enum>(4)</enum><text>The training
required for personnel engaged in such process.</text>
</paragraph><paragraph id="H7414A5EA3DE943B5AA84BCA0C2C9970A"><enum>(5)</enum><text>The relationship
between doctrine and such process.</text>
</paragraph><paragraph id="H5D40C95282504AE1909141A390E8BA10"><enum>(6)</enum><text>Methods of
obtaining input on joint requirements for the acquisition of services.</text>
</paragraph><paragraph id="H02C0BFE34F184C6EBCCB226351AAD87E"><enum>(7)</enum><text>Procedures for
coordinating with the acquisition process.</text>
</paragraph><paragraph id="HA60EC805296B4DEA92B773DD85D7B3F7"><enum>(8)</enum><text>Considerations
relating to opportunities for strategic sourcing.</text>
</paragraph></subsection><subsection id="H688B41D006574640944DEA0416A37BEA"><enum>(d)</enum><header>Matters required
in implementation plan</header><text>Each plan required under subsection (b)
shall provide for initial implementation of a process for identifying,
assessing, and approving requirements for the acquisition of services not later
than 180 days after the date of the enactment of this Act and shall provide for
full implementation of such process at the earliest date practicable.</text>
</subsection><subsection id="H85490ECD3D354C27A51DA70AEE7F1DB5"><enum>(e)</enum><header>Consistency with
joint guidance</header><text>Whenever, at any time, guidance is issued by the
Chairman of the Joint Chiefs of Staff relating to requirements for the
acquisition of services, each process established under subsection (a) shall be
revised in accordance with such joint guidance.</text>
</subsection><subsection id="HEE01525238274A3598AAD2EA3B35D9C5"><enum>(f)</enum><header>Definition</header><text>The
term <quote>requirements for the acquisition of services</quote> means
objectives to be achieved through acquisitions primarily involving the
procurement of services.</text>
</subsection></section><section display-inline="no-display-inline" id="H4C9BD0E0BA6A41C4AEAD40D71708AE0D" section-type="subsequent-section"><enum>105.</enum><header>Joint evaluation
task forces</header>
<subsection id="H0B6D199EC8EF46D383E2666CEB614B73"><enum>(a)</enum><header>Task forces
required</header><text>For each joint military requirement involving a materiel
solution for which the Chairman of the Joint Requirements Oversight Council is
the validation authority, the Chairman shall designate a commander of a unified
combatant command to provide a joint evaluation task force to participate in
such materiel solution. Such task force shall—</text>
<paragraph id="H0AD4915013334BB5B368D351D6A28B17"><enum>(1)</enum><text>come from a
military unit or units designated by the combatant commander concerned;</text>
</paragraph><paragraph id="HB6D7BE866BE64621A521AC75A257E1ED"><enum>(2)</enum><text>be selected based
on the relevance of such materiel solution to the mission of the unit;
and</text>
</paragraph><paragraph id="HF790DFB9B7F94AE2825F61D22C99C890"><enum>(3)</enum><text>participate
consistent with its operational obligations.</text>
</paragraph></subsection><subsection id="H1EF3953540074C1A967D5F5BF44AF307"><enum>(b)</enum><header>Responsibilities</header><text>A
task force provided pursuant to subsection (a) shall, for the materiel solution
concerned—</text>
<paragraph id="H07C1CB7C9A4641F9AE7CEAA5E983B565"><enum>(1)</enum><text>provide input to
the analysis of alternatives;</text>
</paragraph><paragraph id="HBFA912CD974546AAB6461B180D6DEBD5"><enum>(2)</enum><text>participate in
testing (including limited user tests and prototype testing);</text>
</paragraph><paragraph id="H6217B2A779BE4EA39A1503135FE51D64"><enum>(3)</enum><text>provide input on a
concept of operations and doctrine;</text>
</paragraph><paragraph id="H22139A50BC1040E7812E7F5F3B7DB3B1"><enum>(4)</enum><text>provide end user
feedback to the resource sponsor; and</text>
</paragraph><paragraph id="HA4F76B56FE7D420EA5EEA609519C9E6D"><enum>(5)</enum><text display-inline="yes-display-inline">participate, through the combatant
commander concerned, in any alteration of the requirement for such
solution.</text>
</paragraph></subsection><subsection id="HAD5B728548064B0BB0D1BBF5AED1F67D"><enum>(c)</enum><header>Administrative
support</header><text display-inline="yes-display-inline">The resource sponsor
for the joint military requirement shall provide administrative support to the
joint evaluation task force for purposes of carrying out this section.</text>
</subsection><subsection id="HDDC70273944244B9BDAD3539A5E01081"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H9606F8D519AA4114ACD4808AD4E3AB58"><enum>(1)</enum><header>Resource
sponsor</header><text>The term <quote>resource sponsor</quote> means the
organization responsible for all common documentation, periodic reporting, and
funding actions required to support the capabilities development and
acquisition process for the materiel solution.</text>
</paragraph><paragraph id="HCF99C09C3ECF4C0BA1F8B86CBF98BE09"><enum>(2)</enum><header>Materiel
solution</header><text display-inline="yes-display-inline">The term
<quote>materiel solution</quote> means the development, acquisition,
procurement, or fielding of a new item, or of a modification to an existing
item, necessary to equip, operate, maintain, and support military
activities.</text>
</paragraph></subsection></section><section id="H47B7CEDAB9434144B697B8277FD78E83"><enum>106.</enum><header>Review of
defense acquisition guidance</header>
<subsection id="H8B07CF6762394B9D85F28482AEBBBC51"><enum>(a)</enum><header>Review of
guidance</header><text>The Secretary of Defense shall review the acquisition
guidance of the Department of Defense, including, at a minimum, the guidance
contained in Department of Defense Instruction 5000.02 entitled
<quote>Operation of the Defense Acquisition System</quote>.</text>
</subsection><subsection id="HB5959D368CBD4CA48D0467E560644F81"><enum>(b)</enum><header>Matters
considered</header><text>The review performed under subsection (a) shall
consider—</text>
<paragraph id="H0B4A667851A3446186A31FB3C19589A2"><enum>(1)</enum><text display-inline="yes-display-inline">the extent to which it is appropriate to
apply guidance primarily relating to the acquisition of weapon systems to
acquisitions not involving weapon systems (including the acquisition of
commercial goods and commodities, commercial and military unique services, and
information technology);</text>
</paragraph><paragraph id="HC5D4B2589754441DB9C8C446A7F877B1"><enum>(2)</enum><text>whether long-term
sustainment and energy efficiency of weapon systems is appropriately
emphasized;</text>
</paragraph><paragraph id="HB9BE1570F6A944BEAC947BC16B6C7ED9"><enum>(3)</enum><text>whether
appropriate mechanisms exist to communicate information relating to the mission
needs of the Department of Defense to the industrial base in a way that allows
the industrial base to make appropriate investments in infrastructure,
capacity, and technology development to help meet such needs;</text>
</paragraph><paragraph id="HF85EEA7F91B5480988539FE2EEC5EC75"><enum>(4)</enum><text display-inline="yes-display-inline">the extent to which earned value management
should be required on acquisitions not involving the acquisition of weapon
systems and whether measures of quality and technical performance should be
included in any earned value management system;</text>
</paragraph><paragraph id="H2816BF126CD34FBAAE144C86906761C2"><enum>(5)</enum><text display-inline="yes-display-inline">the extent to which it is appropriate to
apply processes primarily relating to the acquisition of weapon systems to the
acquisition of information technology systems, consistent with the requirement
to develop an alternative process for such systems contained in section 804 of
the National Defense Authorization Act for Fiscal Year 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/84">Public Law
111–84</external-xref>; 123 Stat. 2401;
<external-xref legal-doc="usc" parsable-cite="usc/10/2225">10 U.S.C.
2225</external-xref> note); and</text>
</paragraph><paragraph id="HC2450DBCC45548F0B13E01A2302CF8FB"><enum>(6)</enum><text>such other matters
as the Secretary considers appropriate.</text>
</paragraph></subsection><subsection id="HE43E45A9E3554869830BBA83B56F0DFD"><enum>(c)</enum><header>Report</header><text>Not
later than 270 days after the date of the enactment of this Act, the Secretary
of Defense shall submit to the Committees on Armed Services of the Senate and
of the House of Representatives a report detailing any changes in the
acquisition guidance of the Department of Defense identified during the review
required by subsection (a), and any actions taken, or planned to be taken, to
implement such changes.</text>
</subsection></section><section id="H656EE35784D344439801AB827306461E"><enum>107.</enum><header>Requirement to
include references to services acquisition throughout the Federal Acquisition
Regulation</header>
<subsection id="H2CEA84BEDEA44E3EB3CAD4FBE4CFDCD4"><enum>(a)</enum><header>Findings</header><text>Congress
finds the following:</text>
<paragraph id="HF92769EF26374BACBB615694EA95492B"><enum>(1)</enum><text display-inline="yes-display-inline">The acquisition of services can be
extremely complex, and program management skills, tools, and processes need to
be applied to services acquisitions.</text>
</paragraph><paragraph id="HD58898FDC2514DB99B267D8BE75169C6"><enum>(2)</enum><text>An emphasis on the
concept of <quote>services</quote> throughout the Federal Acquisition
Regulation would enhance and support the procurement and project management
community in all aspects of the acquisition planning process, including
requirements development, assessment of reasonableness, and post-award
management and oversight.</text>
</paragraph></subsection><subsection id="H975D591E191C4AE48F3160B14CBFCA78"><enum>(b)</enum><header>Requirement for
changes to FAR</header><text display-inline="yes-display-inline">The Federal
Acquisition Regulation shall be revised to provide, throughout the Regulation,
appropriate references to services acquisition that are in addition to
references provided in part 37 (which relates specifically to services
acquisition).</text>
</subsection><subsection id="H164A45B98840450F878AB120F099F235"><enum>(c)</enum><header>Deadline</header><text>This
section shall be carried out within 270 days after the date of the enactment of
this Act.</text>
</subsection></section><section id="H22AD584C230046D59CC9A1EC3BB22DC7" section-type="subsequent-section"><enum>108.</enum><header>Procurement of
military purpose nondevelopmental items</header>
<subsection id="H35390625DE48412292A32832983248C0"><enum>(a)</enum><header>In
general</header>
<paragraph display-inline="no-display-inline" id="H2B8D1F76A62F4F1A956827D359AE9000"><enum>(1)</enum><header>Procurement of
military purpose nondevelopmental items</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/141">Chapter
141</external-xref> of title 10, United States Code, is amended by adding at
the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H576A08B4EFCA44929E75034C386CC331" style="USC">
<section id="H402AC94C17C04C95B37DD5627064B0AF"><enum>2410r.</enum><header>Military
purpose nondevelopmental items</header>
<subsection id="H9AC620C8D3F7487E838E2BE7C07C9BF0"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H8CDF0EAA242749FE8403905C9D84AB8D"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>military purpose
nondevelopmental item</quote> means an item—</text>
<subparagraph id="H1F6B81DB9237455E97856BCD2C7E0B43"><enum>(A)</enum><text>developed
exclusively at private expense;</text>
</subparagraph><subparagraph id="HB9E3686DF4C94183AA42D71B450F1CCC"><enum>(B)</enum><text>that meets a
validated military requirement, as certified in writing by the responsible
program manager;</text>
</subparagraph><subparagraph id="HBBC9BA8D46A0443AAF120C657C46EC72"><enum>(C)</enum><text>for which delivery
of an initial lot of production-representative items may be made within nine
months after contract award; and</text>
</subparagraph><subparagraph id="HDC97665BEC2A44AFA306A517F9F60AA6"><enum>(D)</enum><text>for which the unit
cost is less than $10,000,000.</text>
</subparagraph></paragraph><paragraph id="H888CFCF23C8347E0B7726D36A34274BE"><enum>(2)</enum><text>The term
<quote>item</quote> has the meaning provided in section 2302(3) of this
title.</text>
</paragraph></subsection><subsection id="HDDFEA573B95E444D890091C2CAE0D1DD"><enum>(b)</enum><header>Requirements</header><text>The
Secretary of Defense shall ensure that, with respect to a contract for the
acquisition of a military purpose nondevelopmental item, the following
requirements apply:</text>
<paragraph id="HB3E43A49181C47F686753E7D198FA032"><enum>(1)</enum><text>The contract shall
be awarded using competitive procedures in accordance with section 2304 of this
title.</text>
</paragraph><paragraph id="H825E1DC2F5FA421299351DAA55B2BF45"><enum>(2)</enum><text>Certain contract
clauses, as specified in regulations prescribed under subsection (c), shall be
included in each such contract.</text>
</paragraph><paragraph id="HCB44B79FF037457C94943418FD92B2ED"><enum>(3)</enum><text>The type of
contract used shall be a firm, fixed price type contract.</text>
</paragraph><paragraph id="HBEB4BB5FD44143BFB48192CBBF8EBAB1"><enum>(4)</enum><text display-inline="yes-display-inline">Nothing in the contract shall further
restrict or otherwise affect the rights in technical data of the Government,
the contractor, or any subcontractor of the contractor for items developed by
the contractor or any such subcontractor exclusively at private expense, as
prescribed in regulations implementing section 2320(a)(2)(B) of this
title.</text>
</paragraph></subsection><subsection id="H255132BA7EF4402BB472118DCBBAA27D"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of Defense shall prescribe
regulations to carry out this section. Such regulations shall be included in
regulations of the Department of Defense prescribed as part of the Federal
Acquisition Regulation. At a minimum, the regulations shall include—</text>
<paragraph id="H48B63F1128A74E0E9BD8618DD972D778"><enum>(1)</enum><text>a list of contract
clauses to be included in each contract for the acquisition of a military
purpose nondevelopmental item;</text>
</paragraph><paragraph id="H4BDB2A20B89C406FA049F1A052BC5FEC"><enum>(2)</enum><text>definitions for
the terms <quote>developed</quote> and <quote>exclusively at private
expense</quote> that—</text>
<subparagraph id="H7CC0B8563D024BBF91504BF558440B54"><enum>(A)</enum><text>are consistent
with the definitions developed for such terms in accordance with 2320(a)(3) of
this title; and</text>
</subparagraph><subparagraph id="H53B6481DC72C472482754AE32B5005E6"><enum>(B)</enum><text>also exclude an
item developed in part or in whole with—</text>
<clause id="H9DF30EFA84064859B28B1D0A7DB6A1A8"><enum>(i)</enum><text>foreign government
funding; or</text>
</clause><clause id="HFB8A4B70F5C7484387E07DA79C633662"><enum>(ii)</enum><text>foreign or
Federal Government loan financing at nonmarket rates; and</text>
</clause></subparagraph></paragraph><paragraph id="HB4FA3FEC857543D999752B9B8931F021"><enum>(3)</enum><text>standards for
evaluating the reasonableness of price for the military purpose
nondevelopmental item, in lieu of certified cost or pricing
data.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD4C8CB5FA0624B5891AA615D8FFF10EB"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H8AE22665D81C42AEA3C5F864D9DB3E2F" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">2410r. Military purpose nondevelopmental
items.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2C013F1E876946D9B76869E64CD43A21"><enum>(b)</enum><header>Cost or pricing
data exception</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/2306a">Section 2306a(b)(1)</external-xref> of title 10,
United States Code, is amended—</text>
<paragraph id="H5D4A5E1CDE7B46D08AEE6FD8BE06E275"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (B);</text>
</paragraph><paragraph id="HD6A273A71D3D425187D3151145918B7B"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (C) and inserting <quote>; or</quote>;
and</text>
</paragraph><paragraph id="H30C4A6A43EB64E04A1275571BC9F82C6"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H672843B898334CE0B4AA9EAEBBA33611" style="USC">
<subparagraph id="HDE4F588D7C3148DB9AC145104FD25406"><enum>(D)</enum><text display-inline="yes-display-inline">for the acquisition of a military purpose
nondevelopmental item, as defined in section 2410r of this title, if the
contracting officer determines in writing that—</text>
<clause id="H3A8435AC476841F5B3CDBB6EB2842E4A"><enum>(i)</enum><text>the contract,
subcontract or modification will be a firm, fixed price type contract;
and</text>
</clause><clause id="H435C1ADD9BA04C4A98FC6D72C14B4029"><enum>(ii)</enum><text>the offeror has
submitted sufficient information to evaluate, through price analysis, the
reasonableness of the price for the military purpose nondevelopmental
item.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA8976EF8B02247229222342BAA2FE884"><enum>(c)</enum><header>Effective
date</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/2410r">Section 2410r</external-xref> of title 10, United
States Code, as added by subsection (a), and the amendment made by subsection
(b), shall apply with respect to contracts entered into after the date that is
120 days after the date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Defense
Acquisition Workforce</header>
<section id="HA80443A56C1849A89CE3EB632822D191" section-type="subsequent-section"><enum>201.</enum><header>Acquisition
workforce excellence</header>
<subsection id="HAEE7E25189C74A5ABD14E2B4D85AEAB7"><enum>(a)</enum><header>In
general</header>
<paragraph display-inline="no-display-inline" id="H1D06B809DC104BBA8E7AB0E6C131C2EA"><enum>(1)</enum><header>Acquisition
workforce excellence</header><text>Subchapter I of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">chapter 87</external-xref> of title 10,
United States Code, is amended by inserting after
<external-xref legal-doc="usc" parsable-cite="usc/10/1701">section
1701</external-xref> the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HDAE74A1A026F48DF87371506F7139993" style="USC">
<section id="H55240C0C4DB04E96A84D0C02792900A7"><enum>1701a.</enum><header>Management
for acquisition workforce excellence</header>
<subsection display-inline="no-display-inline" id="H55444A2D4A564759B3B8BE3000ACDC23"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this chapter is to require the Department of Defense to develop and
manage a highly skilled professional acquisition workforce—</text>
<paragraph id="H3285F03EE89C44AF90126E8A975EBD54"><enum>(1)</enum><text>in which
excellence and contribution to mission is rewarded;</text>
</paragraph><paragraph id="H7E575F0A27E1408788D79F6FF7162FD4"><enum>(2)</enum><text>which has the
technical expertise and business skills to ensure the Department receives the
best value for the expenditure of public resources;</text>
</paragraph><paragraph id="H5FC5B3D3726548A08245D3BCCF04BC31"><enum>(3)</enum><text>which serves as a
model for performance management of employees of the Department; and</text>
</paragraph><paragraph id="H305BAAC43E4246138C1C93DD391CEC76"><enum>(4)</enum><text display-inline="yes-display-inline">which is managed in a manner that
complements and reinforces the performance management of the defense
acquisition system pursuant to chapter 149 of this title.</text>
</paragraph></subsection><subsection id="H07DD8CD56CD743A5AE5B58A1AFBAE790"><enum>(b)</enum><header>Performance
management</header><text>In order to achieve the purpose set forth in
subsection (a), the Secretary of Defense shall—</text>
<paragraph id="HFC4AD0F4FEFF421897597695FE199308"><enum>(1)</enum><text>use the full
authorities provided in subsections (a) through (d) of
<external-xref legal-doc="usc" parsable-cite="usc/5/9902">section
9902</external-xref> of title 5, including flexibilities related to performance
management and hiring and to training of managers;</text>
</paragraph><paragraph id="H9ED45850F21348B98409B554EC9B57D5"><enum>(2)</enum><text>require managers
to develop performance plans for individual members of the acquisition
workforce in order to give members an understanding of how their performance
contributes to their organization’s mission and the success of the defense
acquisition system (as defined in section 2545 of this title);</text>
</paragraph><paragraph id="HDD644D1F6F004DD78C649722606D81D0"><enum>(3)</enum><text>to the extent
appropriate, use the lessons learned from the acquisition demonstration project
carried out under section 1762 of this title related to contribution-based
compensation and appraisal, and how those lessons may be applied within the
General Schedule system;</text>
</paragraph><paragraph commented="no" id="H6CCD505C7CEB45B783871C94DB9BA821"><enum>(4)</enum><text>develop attractive
career paths;</text>
</paragraph><paragraph id="H4FCB63259D6444B497465AF8AE57EE08"><enum>(5)</enum><text>encourage
continuing education and training;</text>
</paragraph><paragraph id="H57F5B4DF9E25456093083CD62F349632"><enum>(6)</enum><text>develop
appropriate procedures for warnings during performance evaluations and due
process for members of the acquisition workforce who consistently fail to meet
performance standards;</text>
</paragraph><paragraph id="HD471AA90A8274531BF6007A990D55894"><enum>(7)</enum><text display-inline="yes-display-inline">take full advantage of the Defense Civilian
Leadership Program established under section 1112 of the National Defense
Authorization Act for Fiscal Year 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/84">Public Law 111–84</external-xref>; 123 Stat. 2496;
<external-xref legal-doc="usc" parsable-cite="usc/10/1580">10 U.S.C.
1580</external-xref> note prec.);</text>
</paragraph><paragraph id="HE118ACA383124EA982CEAA05C18AF3DE"><enum>(8)</enum><text>use the
authorities for highly qualified experts under
<external-xref legal-doc="usc" parsable-cite="usc/5/9903">section
9903</external-xref> of title 5, to hire experts who are skilled acquisition
professionals to—</text>
<subparagraph id="H89593CD4CE214C01A1D4D32A869CE647"><enum>(A)</enum><text>serve in
leadership positions within the acquisition workforce to strengthen management
and oversight;</text>
</subparagraph><subparagraph id="HEEFE8459B70344148B8CAC3666F249DE"><enum>(B)</enum><text>provide mentors to
advise individuals within the acquisition workforce on their career paths and
opportunities to advance and excel within the acquisition workforce; and</text>
</subparagraph><subparagraph id="H7C0617C8E3F74C309E02E94C2AC9DA3B"><enum>(C)</enum><text>assist with the
design of education and training courses and the training of individuals in the
acquisition workforce; and</text>
</subparagraph></paragraph><paragraph id="HEC25C91D7F704AEEA810BD3225CE2463"><enum>(9)</enum><text>use the
authorities for expedited security clearance processing pursuant to section
1564 of this title.</text>
</paragraph></subsection><subsection id="HE79CE93CB4F24660AEB306376BD4C006"><enum>(c)</enum><header>Negotiations</header><text>Any
action taken by the Secretary under this section, or to implement this section,
shall be subject to the requirements of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/71">chapter
71</external-xref> of title 5.</text>
</subsection><subsection id="H90865750810B46D08D8D0246F4D384A9"><enum>(d)</enum><header>Regulations</header><text>Any
rules or regulations prescribed pursuant to this section shall be deemed an
agency rule or regulation under
<external-xref legal-doc="usc" parsable-cite="usc/5/7117">section
7117(a)(2)</external-xref> of title 5, and shall not be deemed a
Government-wide rule or regulation under section 7117(a)(1) of such
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H40B7B93D778D497B804489CB315F45E0"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such
subchapter is amended by inserting after the item relating to section 1701 the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="H294B2CCF2EDD4FA5B4810FD097BAED8F" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1701a. Management for acquisition
workforce
excellence.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFF05E040F20840A8BD6FF631CF247912"><enum>(b)</enum><header>Authority to
appoint highly qualified experts on part-time
basis</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/9903">Section 9903(b)(1)</external-xref> of title 5,
United States Code, is amended by inserting <quote>, on a full-time or
part-time basis,</quote> after <quote>positions in the Department of
Defense</quote> the first place it appears.</text>
</subsection></section><section id="HDC2BD3A6D76240DEBA0A129EEE31A478"><enum>202.</enum><header>Amendments to
the acquisition workforce demonstration project</header>
<subsection display-inline="no-display-inline" id="H890270C9C67141EB9B9A444B4BF68857"><enum>(a)</enum><header>Codification
into title 10</header>
<paragraph id="HC50AB03A47D6490DB5E8D2661C91D6F9"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">Chapter 87</external-xref> of title 10,
United States Code, is amended by inserting after
<external-xref legal-doc="usc" parsable-cite="usc/10/1761">section
1761</external-xref> the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HD76467A2F0E845F2824635FE4C07B66B" style="USC">
<section id="HBCA41901CB82461AA4232964C394A8CB"><enum>1762.</enum><header>Demonstration
project relating to certain acquisition personnel management policies and
procedures</header>
<subsection id="H557BE6ECF8314578B020C0CE65E67E03"><enum>(a)</enum><header>Commencement</header><text display-inline="yes-display-inline">The Secretary of Defense is encouraged to
carry out a demonstration project, the purpose of which is to determine the
feasibility or desirability of one or more proposals for improving the
personnel management policies or procedures that apply with respect to the
acquisition workforce of the Department of Defense and supporting personnel
assigned to work directly with the acquisition workforce.</text>
</subsection><subsection id="HF797566469924DBAB515FE0D576B34FE"><enum>(b)</enum><header>Terms and
conditions</header><paragraph commented="no" display-inline="yes-display-inline" id="H517DF3B4DC4E44FBAE25E414CAC587C4"><enum>(1)</enum><text>Except as otherwise
provided in this subsection, any demonstration project described in subsection
(a) shall be subject to
<external-xref legal-doc="usc" parsable-cite="usc/5/4703">section
4703</external-xref> of title 5 and all other provisions of such title that
apply with respect to any demonstration project under such section.</text>
</paragraph><paragraph id="H2034C3F23CDD4A2CB34DEFB26917BBA0" indent="up1"><enum>(2)</enum><text>Subject to paragraph (3), in applying
<external-xref legal-doc="usc" parsable-cite="usc/5/4703">section
4703</external-xref> of title 5 with respect to a demonstration project
described in subsection (a)—</text>
<subparagraph id="H69474C3DC80B463882418910A2178326"><enum>(A)</enum><text><quote>180 days</quote> in subsection
(b)(4) of such section shall be deemed to read <quote>120 days</quote>;</text>
</subparagraph><subparagraph id="H0D6B522314294484B8CB3094449A79E4"><enum>(B)</enum><text><quote>90 days</quote> in subsection
(b)(6) of such section shall be deemed to read <quote>30 days</quote>;
and</text>
</subparagraph><subparagraph id="H5E504D058ED14983B586462ED29C950A"><enum>(C)</enum><text>subsection (d)(1) of such section
shall be disregarded.</text>
</subparagraph></paragraph><paragraph id="H88B2DB6B37C24E7DB36F9A5ECEFD97B9" indent="up1"><enum>(3)</enum><text>Paragraph (2) shall not apply with
respect to a demonstration project unless—</text>
<subparagraph id="H5A352D7C9BAA409198B5C5BE8AC8DC99"><enum>(A)</enum><text>for each organization or team
participating in the demonstration project—</text>
<clause id="H3A7BAFC7262646698C2D5A0CE308CD2E"><enum>(i)</enum><text>at least one-third of the workforce
participating in the demonstration project consists of members of the
acquisition workforce; and</text>
</clause><clause id="HE2216D82B78D480F9D59BDAF3C4C0C88"><enum>(ii)</enum><text>at least two-thirds of the
workforce participating in the demonstration project consists of members of the
acquisition workforce and supporting personnel assigned to work directly with
the acquisition workforce; and</text>
</clause></subparagraph><subparagraph id="HDC56B0A1B858444A9BDEFC09E1A0A974"><enum>(B)</enum><text>the demonstration project commences
before October 1, 2007.</text>
</subparagraph></paragraph></subsection><subsection id="H81EEB9405DB242638FBBB0B9F08D5D0C"><enum>(c)</enum><header>Limitation on
number of participants</header><text>The total number of persons who may
participate in the demonstration project under this section may not exceed
120,000.</text>
</subsection><subsection id="H5FAC3B3C8F01475A8AAADFAC4C5B50EB"><enum>(d)</enum><header>Effect of
reorganizations</header><text>The applicability of paragraph (2) of subsection
(b) to an organization or team shall not terminate by reason that the
organization or team, after having satisfied the conditions in paragraph (3) of
such subsection when it began to participate in a demonstration project under
this section, ceases to meet one or both of the conditions set forth in
subparagraph (A) of such paragraph (3) as a result of a reorganization,
restructuring, realignment, consolidation, or other organizational
change.</text>
</subsection><subsection id="H47908452802E4AEAA13691DBFD4FAF1C"><enum>(e)</enum><header>Assessment</header><paragraph commented="no" display-inline="yes-display-inline" id="H2B5BF1147A174FE19B7C160E0547C759"><enum>(1)</enum><text>The Secretary of Defense
shall designate an independent organization to review the acquisition workforce
demonstration project described in subsection (a).</text>
</paragraph><paragraph id="H990C20C7D98043C1959F698AADEE3EC8" indent="up1"><enum>(2)</enum><text>Such assessment shall include:</text>
<subparagraph id="H44E8B031B04B4EFC8F480318F2756A50"><enum>(A)</enum><text>A description of the workforce
included in the project.</text>
</subparagraph><subparagraph id="HE0F3DF21641D45F3A0DBDFD3ED5CA3A4"><enum>(B)</enum><text>An explanation of the flexibilities
used in the project to appoint individuals to the acquisition workforce and
whether those appointments are based on competitive procedures and recognize
veteran’s preferences.</text>
</subparagraph><subparagraph id="H076DBA0DCF08495FADF67220B5FE734C"><enum>(C)</enum><text>An explanation of the flexibilities
used in the project to develop a performance appraisal system that recognizes
excellence in performance and offers opportunities for improvement.</text>
</subparagraph><subparagraph id="H48414641C6604390AC98AEE798344BF0"><enum>(D)</enum><text>The steps taken to ensure that such
system is fair and transparent for all employees in the project.</text>
</subparagraph><subparagraph id="HBC14E03FCE34407AA8DA2062383B67CB"><enum>(E)</enum><text>How the project allows the
organization to better meet mission needs.</text>
</subparagraph><subparagraph id="HA2C973D508624185B51D7E6B8BE4001C"><enum>(F)</enum><text>An analysis of how the flexibilities
in subparagraphs (B) and (C) are used, and what barriers have been encountered
that inhibit their use.</text>
</subparagraph><subparagraph id="H350AB2DC98454983B39A1C6833E21F58"><enum>(G)</enum><text>Whether there is a process for—</text>
<clause id="H6E05894544D24D809C0AFB3152BD282F"><enum>(i)</enum><text>ensuring ongoing performance
feedback and dialogue among supervisors, managers, and employees throughout the
performance appraisal period; and</text>
</clause><clause id="H879627ECA2BB4DE9BFEF61433CD3D39C"><enum>(ii)</enum><text>setting timetables for performance
appraisals.</text>
</clause></subparagraph><subparagraph id="HB6BDD2D1DDFF4E3F9A8F70CA8B237DDF"><enum>(H)</enum><text>The project’s impact on career
progression.</text>
</subparagraph><subparagraph id="H69C00FC9DB854A9BAF2CD066D17D0A45"><enum>(I)</enum><text>The project’s appropriateness or
inappropriateness in light of the complexities of the workforce
affected.</text>
</subparagraph><subparagraph id="HD90B66EA3E9D42DCADE62B7F213D193C"><enum>(J)</enum><text>The project’s sufficiency in terms of
providing protections for diversity in promotion and retention of
personnel.</text>
</subparagraph><subparagraph id="H957AE0991C5042AFA94BE00A4BFD7AA0"><enum>(K)</enum><text>The adequacy of the training, policy
guidelines, and other preparations afforded in connection with using the
project.</text>
</subparagraph><subparagraph id="H00E167BFFBC44679959E0EA8998400D3"><enum>(L)</enum><text>Whether there is a process for
ensuring employee involvement in the development and improvement of the
project.</text>
</subparagraph></paragraph><paragraph id="H3C21DC094BBA444999A338053F06EF0A" indent="up1"><enum>(3)</enum><text>The first such assessment under this
subsection shall be completed not later than September 30, 2011, and subsequent
assessments shall be completed every two years thereafter until the termination
of the project. The Secretary shall submit to the covered congressional
committees a copy of the assessment within 30 days after receipt by the
Secretary of the assessment.</text>
</paragraph></subsection><subsection id="H10C1311A3E7E4C7ABB14DFC0F69BF9A7"><enum>(f)</enum><header>Covered
congressional committees</header><text>In this section, the term <quote>covered
congressional committees</quote> means—</text>
<paragraph id="H67F55DFD2DAF413D85C37780D517DAAE"><enum>(1)</enum><text>the Committees on
Armed Services of the Senate and the House of Representatives;</text>
</paragraph><paragraph id="H44F35B76413C4E34942CA53197641B9D"><enum>(2)</enum><text>the Committee on
Homeland Security and Governmental Affairs of the Senate; and</text>
</paragraph><paragraph id="H3AF334DAB5524828B5E6C4163A132145"><enum>(3)</enum><text>the Committee on
Oversight and Government Reform of the House of Representatives.</text>
</paragraph></subsection><subsection id="HFD8DB178A32844C4B0D9B099F47F8ACF"><enum>(g)</enum><header>Termination of
authority</header><text>The authority to conduct a demonstration program under
this section shall terminate on September 30, 2017.</text>
</subsection><subsection id="H4CDE618D3CE24FC4B8EE11FE751C5C85"><enum>(h)</enum><header>Conversion</header><text>Within
six months after the authority to conduct a demonstration project under this
section is terminated as provided in subsection (g), employees in the project
shall convert to the civilian personnel system created pursuant to
<external-xref legal-doc="usc" parsable-cite="usc/5/9902">section
9902</external-xref> of title
5.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HBBA43AE79B374A639D4BEDE054C6CC5F"><enum>(2)</enum><header>Clerical
Amendment</header><text display-inline="yes-display-inline">The table of
sections at the beginning of subchapter V of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">chapter 87</external-xref> of title 10,
United States Code, is amended by inserting after the item relating to
<external-xref legal-doc="usc" parsable-cite="usc/10/1761">section
1761</external-xref> the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H60332FBC98E24BEB8B842C5103F5064B" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1762. Demonstration project relating to
certain acquisition personnel management policies and
procedures.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF542B577AF3647B7991833A4906221B8"><enum>(b)</enum><header>Conforming
repeal</header><text>Section 4308 of the National Defense Authorization Act for
Fiscal Year 1996 (<external-xref legal-doc="public-law" parsable-cite="pl/104/106">Public Law 104–106</external-xref>;
<external-xref legal-doc="usc" parsable-cite="usc/10/1701">10 U.S.C.
1701</external-xref> note) is repealed.</text>
</subsection></section><section id="H7145C7935E494B429751233D1CDE43EB"><enum>203.</enum><header>Incentive
programs for civilian and military personnel in the acquisition
workforce</header>
<subsection id="HDB5260DBB23E42479E5C6524CAB100C1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">Chapter
87</external-xref> of title 10, United States Code, is amended by inserting
after <external-xref legal-doc="usc" parsable-cite="usc/10/1762">section
1762,</external-xref> as added by section 202, the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H260BF80C6ECB46D38E8EC18EE589B131" style="USC">
<section id="H61095F5C7A9B457487D4A54B4BA61C16"><enum>1763.</enum><header>Incentive
programs for civilian and military personnel in the acquisition
workforce</header>
<subsection id="HB225D8024D364C6C996CEE894439E8D4"><enum>(a)</enum><header>Civilian
acquisition workforce incentives</header><text display-inline="yes-display-inline">The Secretary of Defense, acting through
the Under Secretary of Defense for Acquisition, Technology, and Logistics,
shall provide for an enhanced system of incentives for the encouragement of
excellence in the acquisition workforce by providing rewards for employees who
contribute to achieving the agency’s performance goals. The system of
incentives shall include provisions that—</text>
<paragraph id="H32C0D571C7514A1BA3D018A71D1BA00B"><enum>(1)</enum><text>relate salary
increases, bonuses, and awards to performance and contribution to the agency
mission (including the extent to which the performance of personnel in such
workforce contributes to achieving the goals and standards established for
acquisition programs pursuant to section 2545 of this title);</text>
</paragraph><paragraph id="H5E02701A760845F0B53A2621B45D6870"><enum>(2)</enum><text>provide for
consideration, in personnel evaluations and promotion decisions, of the extent
to which the performance of personnel in such workforce contributes to
achieving such goals and standards;</text>
</paragraph><paragraph id="H3D4ABB6030244F58A118BC142485B1EB"><enum>(3)</enum><text>use the Department
of Defense Civilian Workforce Incentive Fund established pursuant to
<external-xref legal-doc="usc" parsable-cite="usc/5/9902">section
9902(a)</external-xref> of title 5; and</text>
</paragraph><paragraph id="H9BB557A61BD14F60BA3A58CB7FACB6B0"><enum>(4)</enum><text>provide
opportunities for career broadening experiences for high performers.</text>
</paragraph></subsection><subsection id="H9C2F3640A1934E24A0A9089B965BB6E3"><enum>(b)</enum><header>Military
acquisition workforce incentives</header><text>The Secretaries of the military
departments shall fully use and enhance incentive programs that reward
individuals, through recognition certificates or cash awards, for suggestions
of process improvements that contribute to improvements in efficiency and
economy and a better way of doing
business.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2F6223FD395742FE91F1B6E4CA9BB2ED"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of subchapter V
of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">chapter 87</external-xref> of title 10,
United States Code, is amended by inserting after the item relating to
<external-xref legal-doc="usc" parsable-cite="usc/10/1762">section
1762,</external-xref> as added by section 202, the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HBD64FC638ED544F48C393D7AC45DF5FC" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1763. Incentive programs for civilian and
military personnel in the acquisition
workforce.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HAD91254214544B03B337D1D0563641A9"><enum>204.</enum><header>Career
development for civilian and military personnel in the acquisition
workforce</header>
<subsection id="H74E5B874A08448F984944B112B4B7E2C"><enum>(a)</enum><header>Career
paths</header>
<paragraph id="H72A51230477345FBAE60F7E21F07E832"><enum>(1)</enum><header>Amendment</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">Chapter
87</external-xref> of title 10, United States Code, is amended by inserting
after <external-xref legal-doc="usc" parsable-cite="usc/10/1722a">section
1722a</external-xref> the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HF4533323981948B6B3851C2DEB745261" style="USC">
<section id="HD3F7DF12B26E4008AE14EF4F63CF8756"><enum>1722b.</enum><header>Special
requirements for civilian employees in the acquisition field</header>
<subsection id="H26FF96A15A2E4F62A8D2854EEABD58C2"><enum>(a)</enum><header>Requirement for
policy and guidance regarding civilian personnel in acquisition</header><text display-inline="yes-display-inline">The Secretary of Defense, acting through
the Under Secretary of Defense for Acquisition, Technology, and Logistics,
shall establish policies and issue guidance to ensure the proper development,
assignment, and employment of civilian members of the acquisition workforce to
achieve the objectives specified in subsection (b).</text>
</subsection><subsection id="H1212E1E46C9642EC8BC6FCAED09F121C"><enum>(b)</enum><header>Objectives</header><text>Policies
established and guidance issued pursuant to subsection (a) shall ensure, at a
minimum, the following:</text>
<paragraph id="H8C42C3EDCC3940FA8D2BCB3C48205E34"><enum>(1)</enum><text>A career path in
the acquisition field that attracts the highest quality civilian personnel,
from either within or outside the Federal Government.</text>
</paragraph><paragraph id="H4F453D88A76A48FD9300652AC6526FF5"><enum>(2)</enum><text>A deliberate
workforce development strategy that increases attainment of key experiences
that contribute to a highly qualified acquisition workforce.</text>
</paragraph><paragraph id="H6A8C538E34814A72B24C8AACF2261B05"><enum>(3)</enum><text>Sufficient
opportunities for promotion and advancement in the acquisition field.</text>
</paragraph><paragraph id="HC8A2A0FDA04E4503B0F4C4642AC98E34"><enum>(4)</enum><text>A sufficient
number of qualified, trained members eligible for and active in the acquisition
field to ensure adequate capacity, capability, and effective succession for
acquisition functions, including contingency contracting, of the Department of
Defense.</text>
</paragraph><paragraph id="H33411BD98585400380103EBF803D697A"><enum>(5)</enum><text display-inline="yes-display-inline">A deliberate workforce development strategy
that ensures diversity in promotion, advancement, and experiential
opportunities commensurate with the general workforce outlined in this
section.</text>
</paragraph></subsection><subsection id="HE29A5443A12C4140ACA6ED8560F75B23"><enum>(c)</enum><header>Inclusion of
information in annual report</header><text display-inline="yes-display-inline">The Secretary of Defense shall include in
the report to Congress required under section 115b(d) of this title the
following information related to the acquisition workforce for the period
covered by the report (which shall be shown for the Department of Defense as a
whole and separately for the Army, Navy, Air Force, Marine Corps, Defense
Agencies, and Office of the Secretary of Defense):</text>
<paragraph id="H64CC5DFC7A1C4305969879F1C094A0B7"><enum>(1)</enum><text>The total number
of persons serving in the Acquisition Corps, set forth separately for members
of the armed forces and civilian employees, by grade level and by functional
specialty.</text>
</paragraph><paragraph id="H108A447CF4934382892B2CAB0F6DDED7"><enum>(2)</enum><text display-inline="yes-display-inline">The total number of critical acquisition
positions held, set forth separately for members of the armed forces and
civilian employees, by grade level and by other appropriate categories
(including by program manager, deputy program manager, and division head
positions). For each such category, the report shall specify the number of
civilians holding such positions compared to the total number of positions
filled.</text>
</paragraph><paragraph id="H7B5201EF60EB4A3CA7CBE10E6E97B405"><enum>(3)</enum><text display-inline="yes-display-inline">The number of employees to whom the
requirements of subsections (b)(2)(A) and (b)(2)(B) of section 1732 of this
title did not apply because of the exceptions provided in paragraphs (1) and
(2) of section 1732(c) of this title, set forth separately by type of
exception.</text>
</paragraph><paragraph id="H3FD9FBA2E4A343469C30385AA289191E"><enum>(4)</enum><text>The number of
program managers and deputy program managers who were reassigned after
completion of a major milestone occurring closest in time to the date on which
the person has served in the position for four years (as required under section
1734(b) of this title), and the proportion of those reassignments to the total
number of reassignments of program managers and deputy program managers, set
forth separately for program managers and deputy program managers. The
Secretary also shall include the average length of assignment served by program
managers and deputy program managers so reassigned.</text>
</paragraph><paragraph id="H028A44E91D33462589EE584862E76F54"><enum>(5)</enum><text>The number of
persons, excluding those reported under paragraph (4), in critical acquisition
positions who were reassigned after a period of three years or longer (as
required under section 1734(a) of this title), and the proportion of those
reassignments to the total number of reassignments of persons, excluding those
reported under paragraph (4), in critical acquisition positions.</text>
</paragraph><paragraph id="H85949E883DE24778B1C36F0520B461FC"><enum>(6)</enum><text>The number of
times a waiver authority was exercised under section 1724(d), 1732(d), 1734(d),
or 1736(c) of this title or any other provision of this chapter (or other
provision of law) which permits the waiver of any requirement relating to the
acquisition workforce, and in the case of each such authority, the reasons for
exercising the authority. The Secretary may present the information provided
under this paragraph by category or grouping of types of waivers and
reasons.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H37576DCED6714934B2651066A3B66F7E"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of subchapter II
of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">chapter 87</external-xref> of title 10,
United States Code, is amended by inserting after the item relating to
<external-xref legal-doc="usc" parsable-cite="usc/10/1722a">section
1722a</external-xref> the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H876BF0013A894858B037A645BA4EB8E0" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1722b. Special requirements for civilian
employees in the acquisition
field.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1F003B5FF4A64A079418D250E2B2909A"><enum>(b)</enum><header>Career education
and training</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">Chapter
87</external-xref> of title 10, United States Code, is amended in section 1723
by redesignating subsection (b) as subsection (c) and inserting after
subsection (a) the following new subsection:</text>
<quoted-block id="H822630FD968E42F3B3B85FF6E4CAD156" style="OLC">
<subsection id="H65F1B95AFF9A48B49CD69173C1510CC5"><enum>(b)</enum><header>Career path
requirements</header><text>For each career path, the Secretary of Defense,
acting through the Under Secretary of Defense for Acquisition, Technology, and
Logistics shall establish requirements for the completion of course work and
related on-the-job training and demonstration of qualifications in the critical
acquisition-related duties and tasks of the career path. The Secretary of
Defense, acting through the Under Secretary, shall also—</text>
<paragraph id="H8B421FC72ED8421D8805EA9BABEA3E5F"><enum>(1)</enum><text>encourage
individuals in the acquisition workforce to maintain the currency of their
acquisition knowledge and generally enhance their knowledge of related
acquisition management disciplines through academic programs and other
self-developmental activities; and</text>
</paragraph><paragraph id="HFD74A02011EC4C59BCE39EC65CD26A4E"><enum>(2)</enum><text display-inline="yes-display-inline">develop key work experiences, including the
creation of a program sponsored by the Department of Defense that facilitates
the periodic interaction between individuals in the acquisition workforce and
the end user in such end user’s environment to enhance the knowledge base of
such workforce, for individuals in the acquisition workforce so that the
individuals may gain in-depth knowledge and experience in the acquisition
process and become seasoned, well-qualified members of the acquisition
workforce.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H92CC0B06E7574209ACD457ADFB572F46"><enum>205.</enum><header>Recertification
and training requirements</header>
<subsection id="H27D9BA257D054EE3A993AFF05F6E9279"><enum>(a)</enum><header>Continuing
education</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/1723">Section 1723</external-xref> of title 10, United
States Code, as amended by section 204, is further amended by amending
subsection (a) to read as follows:</text>
<quoted-block id="HC03115CD27B949E2A87475BC8C1FFF64" style="OLC">
<subsection id="HD197B7C4C93A4ADF8AB08EAED536D2F6"><enum>(a)</enum><header>Qualification
requirements</header><paragraph commented="no" display-inline="yes-display-inline" id="H4540657CFAA643559149D860C9FB8518"><enum>(1)</enum><text display-inline="yes-display-inline">The Secretary of Defense shall establish
education, training and experience requirements for each acquisition position,
based on the level of complexity of duties carried out in the position. In
establishing such requirements, the Secretary shall ensure the availability and
sufficiency of training in all areas of acquisition, including additional
training courses with an emphasis on services contracting, market research
strategies (including assessments of local contracting capabilities), long-term
sustainment strategies, information technology, and rapid acquisition.</text>
</paragraph><paragraph id="H04332BA8CE864C2D8C04D6A81E1A0039" indent="up1"><enum>(2)</enum><text>In establishing such requirements for
positions other than critical acquisition positions designated pursuant to
<external-xref legal-doc="usc" parsable-cite="usc/10/1733">section
1733</external-xref> of this title, the Secretary may state the requirements by
categories of positions.</text>
</paragraph><paragraph id="H340670761A33430DB622C83E2274ACDE" indent="up1"><enum>(3)</enum><text>The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall establish requirements for continuing education and periodic
renewal of an individual’s certification. Any requirement for a certification
renewal shall not require a renewal more often than once every five
years.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5728FF9943DD4AF79A3C8DBF79063458"><enum>(b)</enum><header>Standards for
training</header>
<paragraph id="HD406C783C8FD4D008E9D7D14C1C12DC1"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subchapter IV of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">Chapter 87</external-xref> of title 10,
United States Code, is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H0C231FB5133B43A385DE291E2A85EF02" style="USC">
<section id="H69FAEA5F176D44E0B7597C0F43B3D764"><enum>1748.</enum><header>Guidance and
standards for acquisition workforce training</header>
<subsection id="H4CF07E2B07864FD1BF3F515E055E87E0"><enum>(a)</enum><header>Fulfillment
standards</header><text>The Secretary of Defense, acting through the Under
Secretary of Defense for Acquisition, Technology, and Logistics, shall develop
fulfillment standards, and implement and maintain a program, for purposes of
the training requirements of sections 1723, 1724, and 1735 of this title. Such
fulfillment standards shall consist of criteria for determining whether an
individual has demonstrated competence in the areas that would be taught in the
training courses required under those sections. If an individual meets the
appropriate fulfillment standard, the applicable training requirement is
fulfilled.</text>
</subsection><subsection id="H5C5A080BF55A4B65AE3D7D0B974C3B79"><enum>(b)</enum><header>Guidance and
standards relating to contracts for training</header><text>The Secretary of
Defense shall develop appropriate guidance and standards to ensure that the
Department of Defense will continue, where appropriate and cost-effective, to
enter into contracts for the training requirements of sections 1723, 1724, and
1735 of this title, while maintaining appropriate control over the content and
quality of such
training.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8ED668E43B31490C9A6BE1BD65757B96"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such
subchapter is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H4A83B1C4FCE54E2B87003CE698D3DB36" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1748. Guidance and standards for
acquisition workforce
training.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H82043EB0E19A4C1D9086694D7D354C93"><enum>(3)</enum><header>Deadline for
fulfillment standards</header><text>The fulfillment standards required under
<external-xref legal-doc="usc" parsable-cite="usc/10/1748">section
1748(a)</external-xref> of title 10, United States Code, as added by paragraph
(1), shall be developed not later than 90 days after the date of the enactment
of this Act.</text>
</paragraph><paragraph id="HA029E1DC17AE467E820CCCC09D47ED95"><enum>(4)</enum><header>Conforming
repeal</header><text>Section 853 of
<external-xref legal-doc="public-law" parsable-cite="pl/105/85">Public Law
105–85</external-xref> (111 Stat. 1851) is repealed.</text>
</paragraph></subsection></section><section id="H400F934D7F4E47EF940A506C5EAC1751" section-type="subsequent-section"><enum>206.</enum><header>Information
technology acquisition workforce</header>
<subsection id="H34CAA8C915C8482091630A6F24EE2F84"><enum>(a)</enum><header>In
general</header>
<paragraph display-inline="no-display-inline" id="H5FF00494B91442B5A5EFECB64D4B6CBB"><enum>(1)</enum><header>Information
technology</header><text>Subchapter II of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/87">chapter 87</external-xref> of title 10,
United States Code, is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HA926305EE4C94A99A289B43D83F3DE41" style="USC">
<section id="HCD7A90429DD5477EAA3D07AEE7D1A3F9"><enum>1725.</enum><header>Information
technology acquisition positions</header>
<subsection id="H3106ECDE8641406280A0E81804CA1B91"><enum>(a)</enum><header>Plan
required</header><text display-inline="yes-display-inline">The Secretary of
Defense shall develop and carry out a plan to strengthen the part of the
acquisition workforce that specializes in information technology. The plan
shall include the following:</text>
<paragraph id="H6598B06E05F84AC4A5DF7EF54EA0D71B"><enum>(1)</enum><text>Defined targets
for billets devoted to information technology acquisition.</text>
</paragraph><paragraph id="HFA7D2D235C694799A3EC3942146F563C"><enum>(2)</enum><text>Specific
certification requirements for individuals in the acquisition workforce who
specialize in information technology acquisition.</text>
</paragraph><paragraph id="H11202996425A448BBE972C09BBAE7AF7"><enum>(3)</enum><text>Defined career
paths for individuals in the acquisition workforce who specialize in
information technology acquisitions.</text>
</paragraph></subsection><subsection id="H5374216D0E4F4FEBAD0DDFDDA519363D"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H53525B72C65F43DC9D5680ACD0C1F882"><enum>(1)</enum><text display-inline="yes-display-inline">The term <quote>information
technology</quote> has the meaning provided such term in
<external-xref legal-doc="usc" parsable-cite="usc/40/11101">section
11101</external-xref> of title 40 and includes information technology
incorporated into a major weapon system.</text>
</paragraph><paragraph id="H02F47254F2584DED9BF180389C080847"><enum>(2)</enum><text>The term
<quote>major weapon system</quote> has the meaning provided such term in
section 2379(f) of this
title.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H15153B3E027E4CAD8A0D03BBAEF3A225"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such
subchapter is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H484C00AC1FD6448494B205113A88391B" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1725. Information technology acquisition
positions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H18462BBFAF4B4348B07F8AAFB80EB80B"><enum>(b)</enum><header>Deadline</header><text>The
Secretary of Defense shall develop the plan required under
<external-xref legal-doc="usc" parsable-cite="usc/10/1725">section
1725</external-xref> 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.</text>
</subsection></section><section id="H2F42B11D45034691B28876A563A43200"><enum>207.</enum><header>Definition of
acquisition workforce</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/10/101">Section 101(a)</external-xref> of
title 10, United States Code, is amended by inserting after paragraph (17) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB6B7D465274747C3A56F2556EB258184" style="USC">
<paragraph id="HCB386A48B2864CF1B85CB29F82A5284D"><enum>(18)</enum><text display-inline="yes-display-inline">The term <quote>acquisition
workforce</quote> means the persons serving in acquisition positions within the
Department of Defense, as designated pursuant to
<external-xref legal-doc="usc" parsable-cite="usc/10/1721">section
1721(a)</external-xref> of this
title.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HF1B1BC3409AF4E81B904C999B6FD8C8B"><enum>208.</enum><header>Defense
Acquisition University curriculum review</header>
<subsection id="HC403E945B7EA4AD3B4BC41C2B357C954"><enum>(a)</enum><header>Curriculum
review</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of the enactment of this Act, the Under Secretary of Defense for
Acquisition, Technology, and Logistics shall lead a review of the curriculum
offered by the Defense Acquisition University to ensure it adequately supports
the training and education requirements of acquisition professionals,
particularly in service contracting, long term sustainment strategies,
information technology, and rapid acquisition. The review shall also involve
the service acquisition executives of each military department.</text>
</subsection><subsection id="HC78C85E74809417A959DE3CFEFE1FD1C"><enum>(b)</enum><header>Analysis of
funding requirements for training</header><text display-inline="yes-display-inline">Following the review conducted under
subsection (a), the Secretary of Defense shall analyze the most recent
future-years defense program to determine the amounts of estimated expenditures
and proposed appropriations necessary to support the training requirements of
the amendments made by section 205 of this Act, including any new training
requirements determined after the review conducted under subsection (a). The
Secretary shall identify any additional funding needed for such training
requirements in the separate chapter on the defense acquisition workforce
required in the next annual strategic workforce plan under 115b of title 10,
United States Code.</text>
</subsection><subsection id="H4536E278A46140C68EE126D5A456297C"><enum>(c)</enum><header>Requirement for
ongoing curriculum development with certain schools</header>
<paragraph id="H846E0C3D57F3442BA50604B4E77E9497"><enum>(1)</enum><header>Requirement</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/1746">Section 1746</external-xref> of
title 10, United States Code, is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H86134B27E2064574B35F2BA6ED813F98" style="USC">
<subsection id="H6E53B467D0774BEABC49909E7B080027"><enum>(c)</enum><header>Curriculum
development</header><text display-inline="yes-display-inline">The President of
the Defense Acquisition University shall work with the relevant professional
schools and degree-granting institutions of the Department of Defense and
military departments to ensure that best practices are used in curriculum
development to support acquisition workforce
positions.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE2FC2137F66E4CBE93E8393F0BF42FB0"><enum>(2)</enum><header>Amendment to
section heading</header><subparagraph commented="no" display-inline="yes-display-inline" id="H48D3B958A9484BE28D5156D4EA7F417F"><enum>(A)</enum><text>The heading of section
1746 of such title is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC0113C517AD44A05A2D45339854126AC" style="USC">
<section id="H6942A6FA1C17498E8CAB2C8E18CF0321"><enum>1746.</enum><header>Defense
Acquisition
University</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HC7A7D58397814D089C65AB8A18A66228" indent="up1"><enum>(B)</enum><text>The item relating to section 1746 in
the table of sections at the beginning of subchapter IV of chapter 87 of such
title is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HAFE6E41EF2D641B4BB96F1A8138CD396" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">1746. Defense Acquisition
University.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section id="HBE41C99A28834FBD92B50187D45DAF8C"><enum>209.</enum><header>Cost estimating
internship and scholarship programs</header>
<subsection id="H107CDC9CAE9D4FCA8B21AE7578D6995A"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to require the Department of Defense to develop
internship and scholarship programs in cost estimating to underscore the
importance of cost estimating, as a core acquisition function, to the
acquisition process.</text>
</subsection><subsection id="HDDB666BD6C0D4D36874B1063F5729BF1"><enum>(b)</enum><header>Requirement</header><text>The
Secretary of Defense shall develop intern and scholarship programs in cost
estimating for purposes of improving education and training in cost estimating
and providing an opportunity to meet any certification requirements in cost
estimating.</text>
</subsection><subsection id="H9C5AD74E98774B41AEF3043528AF1F2A"><enum>(c)</enum><header>Implementation</header><text>Such
programs shall be established not later than 270 days after the date of the
enactment of this Act and shall be implemented for a 4-year period following
establishment of the programs.</text>
</subsection></section><section display-inline="no-display-inline" id="HF3B32779137740BFA4A0F71DBD67214F" section-type="subsequent-section"><enum>210.</enum><header>Prohibition on
personal services contracts for senior mentors</header>
<subsection id="HADAF3700D54042B4A49AA6E75625B2D3"><enum>(a)</enum><header>Prohibition</header><text>The
Secretary of Defense shall prohibit the award of a contract for personal
services by any component of the Department of Defense for the purpose of
obtaining the services of a senior mentor.</text>
</subsection><subsection id="H72C278B02EC64F318672D91113956D1A"><enum>(b)</enum><header>Interpretation</header><text>Nothing
in this section shall be interpreted to prohibit the employment of a senior
mentor as a highly qualified expert pursuant to
<external-xref legal-doc="usc" parsable-cite="usc/5/9903">section
9903</external-xref> of title 5, United States Code, subject to the pay and
term limitations of that section. A senior mentor employed as a highly
qualified expert shall be required to submit a financial disclosure report and
comply with all conflict of interest laws and regulations applicable to other
Federal employees with similar conditions of service.</text>
</subsection><subsection id="H07D14B9862F9488D83BAB1F9FD9B5A69"><enum>(c)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HFC684D5466784999A4D327381AEDAA32"><enum>(1)</enum><text>The term
<quote>contract for personal services</quote> means a contract awarded under
the authority of <external-xref legal-doc="usc" parsable-cite="usc/10/129b">section 129b(a)</external-xref> of title 10, United
States Code, or <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United
States Code.</text>
</paragraph><paragraph id="H2B2EAA921C5142A5AD298B387DAA433A"><enum>(2)</enum><text>The term
<quote>component of the Department of Defense</quote> means a military
department, a defense agency, a Department of Defense field activity, a unified
combatant command, or the joint staff.</text>
</paragraph><paragraph id="HA225153075044B9B982F26F349C4B7A6"><enum>(3)</enum><text>The term
<quote>senior mentor</quote> means any person—</text>
<subparagraph id="HF7D83531B8C545A38BF21A8BCC515D50"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H02C52DA667A34A9D8B3E9702B93DEC00"><enum>(i)</enum><text>who has served as a
general or flag officer in the Armed Forces; or</text>
</clause><clause id="HD09E8A9EBEF64F15A7D544565395745C" indent="up1"><enum>(ii)</enum><text>who has served in a position at a
level at or above the level of the senior executive service;</text>
</clause></subparagraph><subparagraph id="H0F1BDE5A073F4B8BB8DE43C0117B3F0A"><enum>(B)</enum><text>has retired within
the 10 years preceding the award of a contract; and</text>
</subparagraph><subparagraph id="H22018E91F971428B9F30349EECBD3BA3"><enum>(C)</enum><text>who serves as a
mentor, teacher, trainer, or advisor to government personnel on matters
pertaining to the former official duties of such person.</text>
</subparagraph></paragraph></subsection></section><enum>III</enum><header>Financial
Management</header>
<section id="H668585652490410B8951B84BCD4E83BD"><enum>301.</enum><header>Incentives for
achieving auditability</header>
<subsection id="HC1B84CDDD06B43078544E36F81A0193C"><enum>(a)</enum><header>Preferential
treatment authorized</header><text>The Under Secretary of Defense (Comptroller)
shall ensure that any component of the Department of Defense that the Under
Secretary determines has financial statements validated as ready for audit
earlier than September 30, 2017, shall receive preferential treatment, as the
Under Secretary determines appropriate—</text>
<paragraph id="H0118B69CDEEC467891313A2CF18CDC86"><enum>(1)</enum><text>in financial
matter matters, including—</text>
<subparagraph id="H57CE1ACA7C06428FAD43DB4D02047B24"><enum>(A)</enum><text>consistent with
the need to fund urgent warfighter requirements and operational needs, priority
in the release of appropriated funds to such component;</text>
</subparagraph><subparagraph id="H58B5EA9BBCD04C5BAF4020D897D641EA"><enum>(B)</enum><text>relief from the
frequency of financial reporting of such component in cases in which such
reporting is not required by law;</text>
</subparagraph><subparagraph id="H03E835B8D8414C62947FA92CCE1B6E75"><enum>(C)</enum><text>relief from
departmental obligation and expenditure thresholds to the extent that such
thresholds establish requirements more restrictive than those required by law;
or</text>
</subparagraph><subparagraph id="H3B65E57DC4F64D3CB4F78E8DCB5271B7"><enum>(D)</enum><text>such other
measures as the Under Secretary considers appropriate; and</text>
</subparagraph></paragraph><paragraph id="HF68990C34AE84AC1AC4153C31E46463B"><enum>(2)</enum><text display-inline="yes-display-inline">in the availability of personnel management
incentives, including—</text>
<subparagraph id="H614EB2A5D07745B981C3E4A9A4C6159C"><enum>(A)</enum><text>the size of the
bonus pool available to the financial and business management workforce of the
component;</text>
</subparagraph><subparagraph id="H18DD8625435641B28686568E5EF789F0"><enum>(B)</enum><text>the rates of
promotion within the financial and business management workforce of the
component;</text>
</subparagraph><subparagraph id="H5FAE56352B024EE7B08B092F0C47F5AE"><enum>(C)</enum><text>awards for
excellence in financial and business management; or</text>
</subparagraph><subparagraph id="H32970F7BB0BF4475887CF9A4CEE27857"><enum>(D)</enum><text>the scope of work
assigned to the financial and business management workforce of the
component.</text>
</subparagraph></paragraph></subsection><subsection id="HB45DC1FFA2BE45FE99B759D0EB898EE5"><enum>(b)</enum><header>Inclusion of
information in report</header><text>The Under Secretary shall include
information on any measure initiated pursuant to this section in the next
semiannual report pursuant to section 1003(b) of the National Defense
Authorization Act for Fiscal Year 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/84">Public Law 111–84</external-xref>; 123 Stat. 2439;
<external-xref legal-doc="usc" parsable-cite="usc/10/2222">10 U.S.C.
2222</external-xref> note) after such measure is initiated.</text>
</subsection><subsection id="HA1B0A274C7D748CABAB963D945E77AEA"><enum>(c)</enum><header>Expiration</header><text>This
section shall expire on September 30, 2017.</text>
</subsection><subsection id="H259F7A5FB66340FD9DBE1AC909443D43"><enum>(d)</enum><header>Definition</header><text>In
this section, the term <quote>component of the Department of Defense</quote>
means any organization within the Department of Defense that is required to
submit an auditable financial statement to the Secretary of Defense.</text>
</subsection></section><section display-inline="no-display-inline" id="H2B58EC03C2E4432BA564114B82AFF627" section-type="subsequent-section"><enum>302.</enum><header>Measures required
after failure to achieve auditability</header>
<subsection id="HA647BCA49F734E9894BCC5713B171175"><enum>(a)</enum><header>In
general</header><text>The Secretary of Defense shall ensure that corrective
measures are immediately taken to address the failure of a component of the
Department of Defense to achieve a financial statement validated as ready for
audit by September 30, 2017.</text>
</subsection><subsection id="HE057C8ED44654FD39C2CF0EE3CA17D07"><enum>(b)</enum><header>Measures
required</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary shall develop and issue guidance detailing measures
to be taken in accordance with subsection (a). Such measures shall
include—</text>
<paragraph id="HB7B26D1F1178469CBDFCE27B026A633D"><enum>(1)</enum><text>the development of
a remediation plan to ensure the component can achieve a financial statement
validated as ready for audit within 1 year;</text>
</paragraph><paragraph id="H3DFFB74F012342549735A3836071057F"><enum>(2)</enum><text>additional
reporting requirements that may be necessary to mitigate financial risk to the
component;</text>
</paragraph><paragraph id="H1628E814032741BAABE2ED3769B6E8F1"><enum>(3)</enum><text>delaying the
release of appropriated funds to such component, consistent with the need to
fund urgent warfighter requirements and operational needs, until such time as
the Secretary is assured that the component will achieve a financial statement
validated as ready for audit within 1 year;</text>
</paragraph><paragraph id="HA28648A248BF414C98111F16699354E6"><enum>(4)</enum><text>specific
consequences for key personnel in order to ensure accountability within the
leadership of the component; and</text>
</paragraph><paragraph id="HDCDB913389DA4D0190559E90FF4D80B4"><enum>(5)</enum><text>such other
measures as the Secretary considers appropriate.</text>
</paragraph></subsection><subsection id="HFDCBEA86076B4501949CC1C71DA68BAA"><enum>(c)</enum><header>Definition</header><text>The
term <quote>component</quote> of the Department of Defense means any
organization within the Department of Defense that is required to submit an
auditable financial statement to the Secretary of Defense.</text>
</subsection></section><section display-inline="no-display-inline" id="H0D72C36760E9438EBC27A4841B1B00DF" section-type="subsequent-section"><enum>303.</enum><header>Review of obligation
and expenditure thresholds</header>
<subsection id="H8784D21326C746EA879ED04448B32A1F"><enum>(a)</enum><header>Sense of
Congress</header><text>It is the sense of Congress that—</text>
<paragraph id="H4B4510739F324537AEDE82BEA9D3CBA7"><enum>(1)</enum><text>Department of
Defense program managers should be encouraged to place a higher priority on
seeking the best value for the Government than on meeting arbitrary benchmarks
for spending; and</text>
</paragraph><paragraph id="HBEA1F5396CDB4F409EBEF4E28F48AAA2"><enum>(2)</enum><text>actions to carry
out paragraph (1) should be supported by the Department’s leadership at every
level.</text>
</paragraph></subsection><subsection id="HC5DCCACC8BC04BACA374F854CB831E37"><enum>(b)</enum><header>Policy
review</header><text>Not later than 180 days after the date of the enactment of
this Act, the Chief Management Officer of the Department of Defense, in
coordination with the Chief Management Officer of each military department,
shall review and update as necessary all relevant policy and instruction
regarding obligation and expenditure benchmarks to ensure that such guidance
does not inadvertently prevent achieving the best value for the Government in
the obligation and expenditure of funds.</text>
</subsection><subsection id="H9EA50E97D05A47718E2C328814CD646C"><enum>(c)</enum><header>Process
review</header><text>Not later than 1 year after the date of the enactment of
this Act, the Chief Management Officer, in coordination with the Chief
Management Officer of each military department, the Director of the Office of
Performance Assessment and Root Cause Analysis, the Under Secretary of Defense
(Comptroller), and the Comptrollers of the military departments, shall conduct
a comprehensive review of the use and value of obligation and expenditure
benchmarks and propose new benchmarks or processes for tracking financial
performance, including, as appropriate—</text>
<paragraph id="HCAD8DC762D6A4C78801CF71BC087F4F6"><enum>(1)</enum><text>increased reliance
on individual obligation and expenditure plans for measuring program financial
performance;</text>
</paragraph><paragraph id="H710562E3CFAA43C5B33C52F70E2BFD38"><enum>(2)</enum><text>mechanisms to
improve funding stability and to increase the predictability of the release of
funding for obligation and expenditure; and</text>
</paragraph><paragraph id="HF98ED24950094801AD0427CD5E26BDDE"><enum>(3)</enum><text>streamlined
mechanisms for a program manager to submit an appeal for funding changes and to
have such appeal evaluated promptly.</text>
</paragraph></subsection><subsection id="H07E441705D694C83B4491B1D69273620"><enum>(d)</enum><header>Training</header><text>The
Under Secretary of Defense for Acquisition, Technology, and Logistics and the
Under Secretary of Defense (Comptroller) shall ensure that as part of the
training required for program managers and business managers, an emphasis is
placed on obligating and expending appropriated funds in a manner that achieves
the best value for the Government and that the purpose and limitations of
obligation and expenditure benchmarks are made clear.</text>
</subsection></section><section display-inline="no-display-inline" id="HE00324CF7D5B49F983E5B909A5D97439" section-type="subsequent-section"><enum>304.</enum><header>Disclosure and
traceability of the cost of Department of Defense health care
contracts</header>
<subsection id="HFD72D80D6E824DEAB13B18BAACA072DA"><enum>(a)</enum><header>Disclosure
requirement</header><text>The Secretary of Defense shall require—</text>
<paragraph id="HC7B59EAA03964418BE30C7D58DE87D1F"><enum>(1)</enum><text>an offeror that
submits a bid or proposal in response to an invitation for bids or a request
for proposals issued by a component of the Department of Defense for a health
care contract to submit with the bid or proposal a disclosure of the additional
cost, if any, contained in such bid or proposal associated with compliance with
the Patient Protection and Affordable Care Act (<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law
111–148</external-xref>) and the Health Care and Education Reconciliation Act
of 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/152">Public Law 111–152</external-xref>); and</text>
</paragraph><paragraph id="HEBB66695999046F78D2C0B5CA8B320AC"><enum>(2)</enum><text>a
contractor for a health care contract awarded following the date of the
enactment of this Act to disclose on an annual basis the additional cost, if
any, incurred for such contract associated with compliance with the Patient
Protection and Affordable Care Act (<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>) and the Health
Care and Education Reconciliation Act of 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/152">Public Law
111–152</external-xref>).</text>
</paragraph></subsection><subsection id="HE2C62E3320014453BD0822C50D4791D8"><enum>(b)</enum><header>Report</header>
<paragraph id="H7FB82DACE81543009C66A6D94F484B92"><enum>(1)</enum><header>Requirement</header><text>Not
later than April 1, 2011, and each April 1st thereafter until April 1, 2016,
the Secretary of Defense shall submit to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of Representatives a
detailed report on the additional cost to the Department of Defense associated
with compliance with the Patient Protection and Affordable Care Act
(<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law
111–148</external-xref>) and the Health Care and Education Reconciliation Act
of 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/152">Public Law 111–152</external-xref>).</text>
</paragraph><paragraph id="H54368CA5AC95472095ED676D6C15C608"><enum>(2)</enum><header>Matters
covered</header><text>The report required by paragraph (1) shall
include—</text>
<subparagraph id="HDA1801ABC31546889AE226B71AC80DE0"><enum>(A)</enum><text>the projected
costs of compliance for all health care contracts awarded during the preceding
year, as disclosed in a bid or proposal in accordance with subsection
(a)(1);</text>
</subparagraph><subparagraph id="H973F160E2FAF42058B5E0B37F186541E"><enum>(B)</enum><text>for all other
health care contracts, the incurred cost of compliance for the preceding year,
as disclosed in accordance with subsection (a)(2); and</text>
</subparagraph><subparagraph id="H9DE53354806D4833BD123291CD2DCE09"><enum>(C)</enum><text>any additional
costs to the Department of Defense necessary to comply with such Acts.</text>
</subparagraph></paragraph></subsection><subsection id="H5DFF84BA14224FF68624F030694AB760"><enum>(c)</enum><header>Health care
contract defined</header><text>In this section, the term <quote>health care
contract</quote> means a contract in an amount greater than the simplified
acquisition threshold for the acquisition of any of the following:</text>
<paragraph id="H6C99647308AB45929C188D8A58C0CD38"><enum>(1)</enum><text>Medical
supplies.</text>
</paragraph><paragraph id="HDEB458EE22244C4CB53FB45D4A2489C7"><enum>(2)</enum><text>Health care
services and administration, including the services of medical
personnel.</text>
</paragraph><paragraph id="H3A6CFE231C46415194B4CA33E17896DA"><enum>(3)</enum><text>Durable medical
equipment.</text>
</paragraph><paragraph id="H796CC82131F045E58EA90B9207F29E90"><enum>(4)</enum><text>Pharmaceuticals.</text>
</paragraph><paragraph id="H88FB2EEB256E4B68A55B879F172D995F"><enum>(5)</enum><text>Health
care-related information technology.</text>
</paragraph></subsection></section><enum>IV</enum><header>Industrial
Base</header>
<section id="HBF31D16B89E440FD99F3A6748D52EFE8"><enum>401.</enum><header>Expansion of
the industrial base</header>
<subsection id="H11689B3CC1BD4206BF14C2CE1795BCD8"><enum>(a)</enum><header>Program to
expand industrial base required</header><text display-inline="yes-display-inline">The Secretary of Defense shall establish a
program to expand the industrial base of the Department of Defense to increase
the Department’s access to innovation and the benefits of competition. The
program shall be limited to firms within the national technology and industrial
base (as defined in <external-xref legal-doc="usc" parsable-cite="usc/10/2500">section 2500(1)</external-xref> of title 10, United
States Code).</text>
</subsection><subsection id="H5A864551F029443983F97535FE1CB24B"><enum>(b)</enum><header>Identifying and
communicating with nontraditional suppliers</header><text>The program
established under subsection (a) shall use tools and resources available within
the Federal Government and available from the private sector, to provide a
capability for identifying and communicating with nontraditional suppliers,
including commercial firms and firms of all business sizes, that are engaged in
markets of importance to the Department of Defense.</text>
</subsection><subsection display-inline="no-display-inline" id="H31903D683EB34343B316639306A5E5C3"><enum>(c)</enum><header>Outreach to
local firms near defense installations</header><text display-inline="yes-display-inline">The program established under subsection
(a) shall include outreach, using procurement technical assistance centers, to
notify firms of all business sizes in the vicinity of Department of Defense
installations of opportunities to obtain contracts and subcontracts to perform
work at such installations.</text>
</subsection><subsection id="H6A9CCDEAD84E44EDAAFA2DCE007F461A"><enum>(d)</enum><header>Industrial base
review</header><text>The program required by subsection (a) shall include a
continuous effort to review the industrial base supporting the Department of
Defense, including the identification of markets of importance to the
Department of Defense.</text>
</subsection><subsection id="HBC7A099D6AA74AA9865B176AFA178D4A"><enum>(e)</enum><header>Definition</header><text>In
this section:</text>
<paragraph id="HE38ABFB6962C4C7FA62D1F7D7A0B67D8"><enum>(1)</enum><header>Nontraditional
suppliers</header><text>The term <quote>nontraditional suppliers</quote> means
firms that have received contracts from the Department of Defense with a total
value of not more than $100,000 in the previous 5 years.</text>
</paragraph><paragraph id="H407E1642D819486D8A9E7854696485CD"><enum>(2)</enum><header>Markets of
importance to the Department of Defense</header><text>The term <quote>markets
of importance to the Department of Defense</quote> means industrial sectors in
which the Department of Defense spends more than $500,000,000 annually.</text>
</paragraph><paragraph id="H08DFDDE23A1A4CDAA724AC05128D040B"><enum>(3)</enum><header>Procurement
technical assistance center</header><text display-inline="yes-display-inline">The term <quote>procurement technical
assistance center</quote> means a center operating under a cooperative
agreement with the Defense Logistics Agency to provide procurement technical
assistance pursuant to the authority provided in
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/142">chapter 142</external-xref> of title 10,
United States Code.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H4D437FC60E184ECC876CF8989264AB5A" section-type="subsequent-section"><enum>402.</enum><header>Commercial pricing
analysis</header><text display-inline="no-display-inline">Section 803(c) of the
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
(<external-xref legal-doc="public-law" parsable-cite="pl/105/261">Public Law
105–261</external-xref>;
<external-xref legal-doc="usc" parsable-cite="usc/10/2306a">10 U.S.C.
2306a</external-xref> note) is amended to read as follows:</text>
<quoted-block id="HECBF7062F30748C29C1FD3E4FB88DFE9" style="OLC">
<subsection id="HD70F441ED25B4D16A045AA771AEADD0D"><enum>(c)</enum><header>Commercial price
trend analysis</header>
<paragraph id="H03A9B823694B4E39AB0A735F2F33A72B"><enum>(1)</enum><text>The Secretary of
Defense shall develop and implement procedures that, to the maximum extent
practicable, provide for the collection and analysis of information on price
trends for categories of exempt commercial items described in paragraph
(2).</text>
</paragraph><paragraph id="HCCF577A1BF6F4C968BB02D6C6558A128"><enum>(2)</enum><text>A category of
exempt commercial items referred to in paragraph (1) consists of exempt
commercial items that are in a single Federal Supply Group or Federal Supply
Class, are provided by a single contractor, or are otherwise logically grouped
for the purpose of analyzing information on price trends.</text>
</paragraph><paragraph id="H054092FEF208448FAADA63F255633572"><enum>(3)</enum><text>The analysis of
information on price trends under paragraph (1) shall include, in any category
in which significant escalation in prices is identified, a more detailed
examination of the causes of escalation for such prices within the category and
whether such price escalation is consistent across the Department of
Defense.</text>
</paragraph><paragraph id="HCAE06ABE3F7E429B96AA69CAB5BD89FD"><enum>(4)</enum><text>The head of a
Department of Defense agency or the Secretary of a military department shall
take appropriate action to address any unjustified escalation in prices being
paid for items procured by that agency or military department as identified in
an analysis conducted pursuant to paragraph (1).</text>
</paragraph><paragraph id="HD6B211098C604E8487C918B0C0BED81D"><enum>(5)</enum><text>Not later than
April 1 of each of year, the Secretary of Defense shall submit to the Committee
on Armed Services of the Senate and the Committee on Armed Services of the
House of Representatives a report on the analyses of price trends that were
conducted for categories of exempt commercial items during the preceding fiscal
year under the procedures prescribed pursuant to paragraph (1). The report
shall include a description of the actions taken to identify and address any
unjustified price escalation for the categories of items.</text>
</paragraph><paragraph id="HBE786CEB97F0409B9BAB909EE0DB4764"><enum>(6)</enum><text>This subsection
shall not be in effect on and after April 1,
2013.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H41DBE0012734498794AA9057334723AD"><enum>403.</enum><header>Contractor and
grantee disclosure of delinquent Federal tax debts</header>
<subsection id="H9C08E948A5B3495CAAE4556BBBC13F45"><enum>(a)</enum><header>Requirement</header>
<paragraph id="HAF29A193C6DB4FE4893B449090E7582A"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/37">Chapter 37</external-xref> of title 31,
United States Code, is amended by adding at the end of subchapter II the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H9B5ACAC3B4F54A4EBCCEBACB59F3CC34" style="USC">
<section id="HFBB1A2AAED104AD48E10B1DD3C7957F0"><enum>3720F.</enum><header>Contractor
and grantee disclosure of delinquent Federal tax debts</header>
<subsection id="H4865BCB41D7C40448B607FC8D2285484"><enum>(a)</enum><header>Requirement
relating to contracts</header><text>The head of any executive agency that
issues an invitation for bids or a request for proposals for a contract in an
amount greater than the simplified acquisition threshold shall require each
person that submits a bid or proposal to submit with the bid or proposal a
form—</text>
<paragraph id="HCB37A7D693F1424BB25E608190779340"><enum>(1)</enum><text>certifying that
the person does not have a seriously delinquent tax debt; and</text>
</paragraph><paragraph id="H5B0C74A2FD32474EBEDE9926569A8239"><enum>(2)</enum><text>authorizing the
Secretary of the Treasury to disclose to the head of the agency information
strictly limited to verifying whether the person has a seriously delinquent tax
debt.</text>
</paragraph></subsection><subsection id="HB31B2D6E102746EB875DD9C0AF19191F"><enum>(b)</enum><header>Requirement
relating to grants</header><text>The head of any executive agency that offers a
grant in excess of an amount equal to the simplified acquisition threshold may
not award such grant to any person unless such person submits with the
application for such grant a form—</text>
<paragraph id="HE9A8F796A6624BE39B00B85C387E8D0D"><enum>(1)</enum><text>certifying that
the person does not have a seriously delinquent tax debt; and</text>
</paragraph><paragraph id="HDCB9F57C155545DE9F3E76EF88BFF2B0"><enum>(2)</enum><text>authorizing the
Secretary of the Treasury to disclose to the head of the executive agency
information strictly limited to verifying whether the person has a seriously
delinquent tax debt.</text>
</paragraph></subsection><subsection id="HE684A2DEEC4C4E408D080F475CAD40F4"><enum>(c)</enum><header>Form for release
of information</header><text>The Secretary of the Treasury shall make available
to all executive agencies a standard form for the certification and
authorization described in subsections (a) and (b).</text>
</subsection><subsection id="H6D438BC607464AAD9C1E7FBFB0F384F7"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H89CB8188F32D4EBFA6EFC9538909BCF0"><enum>(1)</enum><header>Contract</header><text>The
term <term>contract</term> means a binding agreement entered into by an
executive agency for the purpose of obtaining property or services, but does
not include—</text>
<subparagraph id="HAC6FBBD855F8411C8EFC38F802AD1FEB"><enum>(A)</enum><text>a contract for
property or services that is intended to be entered into through the use of
procedures other than competitive procedures by reason of section 2304(c)(2) of
this title; or</text>
</subparagraph><subparagraph id="HD53BB4F400BC4603A35304C19315628C"><enum>(B)</enum><text>a contract
designated by the head of the agency as necessary to the national security of
the United States.</text>
</subparagraph></paragraph><paragraph id="H1E653017B37041FCB2AE49DCE82E8C79"><enum>(2)</enum><header>Executive
agency</header><text>The term <quote>executive agency</quote> has the meaning
given that term in section 4(1) of the Office of Federal Procurement Policy Act
(<external-xref legal-doc="usc" parsable-cite="usc/41/403">41 U.S.C.
403(1)</external-xref>).</text>
</paragraph><paragraph id="H6F1C70234248478BBD48E06B4C8B88F4"><enum>(3)</enum><header>Person</header><text>The
term <quote>person</quote> includes—</text>
<subparagraph id="H026FE904ED874912824A01BAD447EB0D"><enum>(A)</enum><text>an
individual;</text>
</subparagraph><subparagraph id="H66DBB9A4E8BB432B8015491EB4CC22D7"><enum>(B)</enum><text>a partnership;
and</text>
</subparagraph><subparagraph id="H1E836F3B51054A32B4F166D9057A7B81"><enum>(C)</enum><text>a
corporation.</text>
</subparagraph></paragraph><paragraph commented="no" id="H84A7ECC180ED4070AE959B412EB5BB52"><enum>(4)</enum><header>Seriously
delinquent tax debt</header><text display-inline="yes-display-inline">The term
<quote>seriously delinquent tax debt</quote>—</text>
<subparagraph commented="no" id="H75CAAA6B486B407985705F4431789BFF"><enum>(A)</enum><text display-inline="yes-display-inline">means any Federal tax liability—</text>
<clause commented="no" id="HA72F2C2F75274CBDA6BCA01725F692D2"><enum>(i)</enum><text>that exceeds
$3,000;</text>
</clause><clause commented="no" id="H3EA8FC4C5BCC4604828D93D2F946A328"><enum>(ii)</enum><text>that has been
assessed by the Secretary of the Treasury and not paid; and</text>
</clause><clause commented="no" id="HB64847CE1EEF4254A76B285AF61EB0B6"><enum>(iii)</enum><text>for which a
notice of lien has been filed in public records; and</text>
</clause></subparagraph><subparagraph commented="no" id="H1419D9F44B724FCC80D10941DF00E1E0"><enum>(B)</enum><text display-inline="yes-display-inline">does not include any Federal tax
liability—</text>
<clause commented="no" id="H735A40245D3A48A58D0A3AD2D3FE102C"><enum>(i)</enum><text>being paid in a
timely manner under an offer-in-compromise or installment agreement;</text>
</clause><clause commented="no" id="HBA43BE242CF04A44A595F2C65F2350DE"><enum>(ii)</enum><text>with respect to
which collection due process proceedings are not completed; or</text>
</clause><clause id="HB388A39EB3844706BF2D513AF3228E8C"><enum>(iii)</enum><text display-inline="yes-display-inline">with respect to which collection due
process proceedings are completed and no further payment is required.</text>
</clause></subparagraph></paragraph><paragraph id="H2BB878E035724A5BA387F93630A1452C"><enum>(5)</enum><header>Simplified
acquisition threshold</header><text display-inline="yes-display-inline">The
term <quote>simplified acquisition threshold</quote> has the meaning given that
term in section 4(11) of the Office of Federal Procurement Policy Act
(<external-xref legal-doc="usc" parsable-cite="usc/41/403">41 U.S.C.
403(11)</external-xref>).</text>
</paragraph></subsection><subsection id="H338C687E5A064B6BB636739662506DB5"><enum>(e)</enum><header>Regulations</header><text>The
Administrator for Federal Procurement Policy, in consultation with the
Secretary of the Treasury, shall promulgate regulations that—</text>
<paragraph id="HF0008CEA11F94ED1923016E9E8D9AA55"><enum>(1)</enum><text>treat corporations
and partnerships as having a seriously delinquent tax debt if such corporation
or partnership is controlled (directly or indirectly) by persons who have a
seriously delinquent tax debt;</text>
</paragraph><paragraph id="H6C9CEC22970F4EB9A06FC68C6BD93362"><enum>(2)</enum><text>provide for the
proper application of subsections (a)(2) and (b)(2) in the case of corporations
and partnerships; and</text>
</paragraph><paragraph id="H16C84D566952498D8ADCB4CA16B99DB2"><enum>(3)</enum><text display-inline="yes-display-inline">provide for the proper application of
subsection (a) to first-tier subcontractors that are identified in a bid or
proposal and are a significant part of a bid or proposal
team.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7A62E017B5E64209B3529079E7427420"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 37 of
such title is amended by adding after the item relating to section 3720E the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="HD0E2F1C02F8342399ACFEF4DD2C413A5" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">3720F. Contractor and grantee disclosure
of delinquent Federal tax
debts.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H478156DB6FE74232B8E3C002B40926BD"><enum>(b)</enum><header>Revision of
Federal Acquisition Regulation</header><text display-inline="yes-display-inline">Not later than 90 days after the final
promulgation of regulations under
<external-xref legal-doc="usc" parsable-cite="usc/31/3720F">section
3720F(e)</external-xref> of title 31, United States Code, as added by
subsection (a), the Federal Acquisition Regulation shall be revised to
incorporate the requirements of section 3720F of such title.</text>
</subsection></section><section id="H461A684E462B4DE4B14D08E4AF89C37E"><enum>404.</enum><header>Independence of
contract audits and business system reviews</header>
<subsection id="H771275C0E5D945D58EDBD3C9C82BD2BB"><enum>(a)</enum><header>Defense Contract
Audit Agency general counsel</header>
<paragraph id="HF8AED9E1124E4B4C98A1975DD9E81AAB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subchapter II of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/8">chapter
8</external-xref> of title 10, United States Code, is amended by adding at the
end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HE4BF7CE40BCF435A9FC1FFE92F360A03" style="USC">
<section id="H4B32E00EE3574A149D4A8AE19D239E52"><enum>204.</enum><header>Defense
Contract Audit Agency general counsel</header>
<subsection id="HA8C9614CA0384FBD851983C9BCFB249F"><enum>(a)</enum><header>General
Counsel</header><text display-inline="yes-display-inline">The Director of the
Defense Contract Audit Agency shall appoint a General Counsel of the Defense
Contract Audit Agency.</text>
</subsection><subsection id="HD1EB91C40A7C46CC9D3A85E81616A3BA"><enum>(b)</enum><header>Duties</header><paragraph commented="no" display-inline="yes-display-inline" id="HB7F12B8FB782419B8AC8BA7610730831"><enum>(1)</enum><text display-inline="yes-display-inline">The General Counsel shall perform such
functions as the Director may prescribe and shall serve at the discretion of
the Director.</text>
</paragraph><paragraph id="HA099487080264062A49D5EBFDA6488DE" indent="up1"><enum>(2)</enum><text>Notwithstanding section 140(b) of
this title, the General Counsel shall be the chief legal officer of the Defense
Contract Audit Agency.</text>
</paragraph><paragraph id="H4AC99FE48B3440A7934BE25CDC7E6C3F" indent="up1"><enum>(3)</enum><text>The Defense Contract Audit Agency
shall be the exclusive legal client of the General Counsel.</text>
</paragraph></subsection><subsection id="H2FA56655F55240E9B367381101DE649A"><enum>(c)</enum><header>Office of the
General Counsel</header><text>There is established an Office of the General
Counsel within the Defense Contract Audit Agency. The Director may appoint to
the Office to serve as staff of the General Counsel such legal counsel as the
Director determines is
appropriate.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H30F10004D3CA493599081E8248F7B138"><enum>(2)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections at the beginning of subchapter II of chapter 8 of such title is
amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HCF9E5417974C4ED491E3899BB4D1380B" style="USC">
<toc container-level="quoted-block-container" idref="HE4BF7CE40BCF435A9FC1FFE92F360A03" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H4B32E00EE3574A149D4A8AE19D239E52" level="section">204. Defense Contract Audit Agency general
counsel.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H7C28AB9EC83D49EA8EB9972CC1212310"><enum>(b)</enum><header>Criteria for
business system reviews</header>
<paragraph id="HFC7B4F67255D4F51BBCD0D17D7ADAF50"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/131">Chapter
131</external-xref> of title 10, United States Code, is amended by inserting
after <external-xref legal-doc="usc" parsable-cite="usc/10/2222">section
2222</external-xref> the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HC80EEE6A92A8489C9534ED20B6DE1524" style="USC">
<section id="H61326B2F6D3F45F98D83E41E3D8D76A3"><enum>2222a.</enum><header>Criteria for
business system reviews</header>
<subsection id="H61DCBEC6A0574C7C8038AFB71316CFDA"><enum>(a)</enum><header>Criteria for
business system reviews</header><text>The Secretary of Defense shall ensure
that any contractor business system review carried out by a military
department, a Defense Agency, or a Department of Defense Field Activity—</text>
<paragraph id="HED2D634E53D44276A9D5C715726AB0AD"><enum>(1)</enum><text>complies with
generally accepted government auditing standards issued by the Comptroller
General;</text>
</paragraph><paragraph id="HBCAFDF5D4D9346C6A2B6726D2D189DE5"><enum>(2)</enum><text>is performed by an
audit team that does not engage in any other official activity (audit-related
or otherwise) involving the contractor concerned;</text>
</paragraph><paragraph id="H3053C596D8BA41AF97957240E4624CDE"><enum>(3)</enum><text>is performed in a
time and manner consistent with a documented assessment of risk to the Federal
Government; and</text>
</paragraph><paragraph id="HCD27A31F777F4BDDA3B4C52832FF833F"><enum>(4)</enum><text>involves testing
on a representative sample of transactions sufficient to fully examine the
integrity of the contractor business system concerned.</text>
</paragraph></subsection><subsection id="HA78218D4678047068406640D9835C5DD"><enum>(b)</enum><header>Contractor
business system review defined</header><text>In this section, the term
<quote>contractor business system review</quote> means an audit of policies,
procedures, and internal controls relating to accounting and management systems
of a
contractor.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H84207B41AF36491ABD1918C296A8F5D0"><enum>(2)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections at the beginning of chapter 131 of such title is amended by inserting
after the item relating to section 2222 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HEF744C0E7FF24DAB862DB3FE71E7B5FE" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">2222a. Criteria for business system
reviews.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF26A23CB76F54144AF48218477FEBB92"><enum>(c)</enum><header>Contract audit
guidance</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary of Defense shall issue guidance relating to contract
audits carried out by a military department, a defense agency, or a Department
of Defense field activity that are not contractor business system reviews, as
described under <external-xref legal-doc="usc" parsable-cite="usc/10/2222a">section 2222a</external-xref> of title 10, United
States Code, that—</text>
<paragraph id="H3998D88386F0491DA2716543FA85D95C"><enum>(1)</enum><text>requires that such
audits comply with generally accepted government auditing standards issued by
the Comptroller General and are performed in a time and manner consistent with
a documented assessment of risk to the Federal Government;</text>
</paragraph><paragraph id="HDFCA9AE5D15E4043AAFD626284758996"><enum>(2)</enum><text>establishes
guidelines for discussions of the scope of the audit with the contractor
concerned that ensure that such scope is not improperly influenced by the
contractor;</text>
</paragraph><paragraph id="HE8CA0EB4AF0040B8A37E99371C336C65"><enum>(3)</enum><text>provides for
withholding of contract payments when necessary to compel the submission of
documentation from the contractor; and</text>
</paragraph><paragraph id="HA219BD3D7C004C6384186149C68C3D1C"><enum>(4)</enum><text>requires that the
results of contract audits performed on behalf of an agency of the Department
of Defense be shared with other Federal agencies upon request, without
reimbursement.</text>
</paragraph></subsection><subsection id="H0A70BC497C6D461FB218A749B43E4E77"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="H993B76E429CE47D0BC778081F8772502"><enum>(1)</enum><header>Section
204</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/204">Section 204</external-xref> of title 10, United
States Code, as added by subsection (a), shall take effect on the date of the
enactment of this Act.</text>
</paragraph><paragraph id="H0CB81055C5E84E659437E17B602D232F"><enum>(2)</enum><header>Section
2222a</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/2222a">Section 2222a</external-xref> of title 10, United
States Code, as added by subsection (b), shall take effect 180 days after the
date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="H4F2D9F618BB44601ADDD3A1DC64BB9C7"><enum>405.</enum><header>Blue ribbon
panel on eliminating barriers to contracting with the Department of
Defense</header>
<subsection id="H8DA04DDB2E034A7CA55DB662E54A265A"><enum>(a)</enum><header>Requirement to
establish</header><text display-inline="yes-display-inline">The Secretary of
Defense shall establish a panel consisting of owners of large and small
businesses that are not traditional defense suppliers, for purposes of creating
a set of recommendations on eliminating barriers to contracting with the
Department of Defense and its defense supply centers.</text>
</subsection><subsection id="H9F51A9C1128A439CA2EA652C8D231A10"><enum>(b)</enum><header>Members</header><text>The
panel shall consist of nine members, of whom—</text>
<paragraph id="HCDC8B18E0BCD4109910A07613EB17C55"><enum>(1)</enum><text>three shall be
appointed by the Secretary of the Army;</text>
</paragraph><paragraph id="H388CED3E35924845A9659B0771B07E12"><enum>(2)</enum><text>three shall be
appointed by the Secretary of the Navy; and</text>
</paragraph><paragraph id="H6BE864EC30DD4006A4CC270BC77EA7F2"><enum>(3)</enum><text>three shall be
appointed by the Secretary of the Air Force.</text>
</paragraph></subsection><subsection id="H2A5EDACFCACA4D8A9BF4227A27D8B39C"><enum>(c)</enum><header>Appointment
deadline</header><text>Members shall be appointed to the panel not later than
180 days after the date of the enactment of this Act.</text>
</subsection><subsection id="H7F32BAD1423E41E69FA6506F853D449C"><enum>(d)</enum><header>Duties</header><text>The
panel shall be responsible for developing a set of recommendations on
eliminating barriers to contracting with the Department of Defense and its
defense supply centers.</text>
</subsection><subsection id="HB297911C698C49BDAB2C526D59B41E4B"><enum>(e)</enum><header>Report</header><text>Not
later than 1 year after the date of the enactment of this Act, the panel shall
submit to Congress a report containing its recommendations.</text>
</subsection></section><section id="H6E2810DC744644B69E1525CF786919BC"><enum>406.</enum><header>Inclusion of
the providers of services and information technology in the national technology
and industrial base</header>
<subsection id="H5092AF0C79B54B36B5A375284807462B"><enum>(a)</enum><header>Revised
definitions</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/2500">Section 2500</external-xref> of title 10, United
States Code, is amended—</text>
<paragraph id="HE663B765DFD447F8BFAAF8A0832C62AC"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>or maintenance</quote> and inserting <quote>integration,
services, or information technology</quote>;</text>
</paragraph><paragraph id="H1954E488D3994294BE6A964C0F02AF2B"><enum>(2)</enum><text>in paragraph (4),
by striking <quote>or production</quote> and inserting <quote>production,
integration, services, or information technology</quote>;</text>
</paragraph><paragraph id="HA491DEF26FF54CE89BC853DB1074D7D6"><enum>(3)</enum><text>in paragraph
(9)(A), by striking <quote>and manufacturing</quote> and inserting
<quote>manufacturing, integration, services, and information
technology</quote>; and</text>
</paragraph><paragraph id="H78B5894921C746939B221B2513B6E237"><enum>(4)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC6F12BB4DA7744D78A609954F71EA515" style="USC">
<paragraph id="H0EA0644A2619442081EE9B68D77965E3"><enum>(15)</enum><text display-inline="yes-display-inline">The term <quote>integration</quote> means
the process of providing systems engineering and technical direction for a
system for the purpose of achieving capabilities that satisfy program
requirements.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDF1A84D8225D4A0886D0CB57F2BEC7E0"><enum>(b)</enum><header>Revised
objectives</header><text>Section 2501(a) of such title is amended—</text>
<paragraph id="HF5100B38BF95468D8185FE2317C5848A"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>Supplying and equipping</quote> and inserting
<quote>Supplying, equipping, and supporting</quote>;</text>
</paragraph><paragraph id="HE9D76B8D664D4EFAA50C7366DF8D3EC3"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>and logistics for</quote> and inserting <quote>logistics,
and other activities in support of</quote>;</text>
</paragraph><paragraph id="H03C51725DA5244CA8D6AEDF13703E46A"><enum>(3)</enum><text>in paragraph (4),
by striking <quote>and produce</quote> and inserting <quote>, produce, and
support</quote>; and</text>
</paragraph><paragraph id="H978E99CA1EB847BD994267C9802E3988"><enum>(4)</enum><text>by redesignating
paragraph (6) as paragraph (8) and inserting after paragraph (5) the following
new paragraphs:</text>
<quoted-block id="H1A496068DD864103A29E3ACE2B0BD837" style="OLC">
<paragraph id="HF0E8D792B9294217998251C665B58C5E"><enum>(6)</enum><text>Providing for the
generation of services capabilities that are not core functions of the armed
forces and that are critical to military operations within the national
technology and industrial base.</text>
</paragraph><paragraph id="HB8062897542E4C429C304E1084DC5D54"><enum>(7)</enum><text>Providing for the
development, production, and integration of information technology within the
national technology and industrial
base.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1EFCF12149D2463491064EF98E1CD0D7"><enum>(c)</enum><header>Revised
assessments</header><text>Section 2505(b)(4) of such title is amended by
inserting after <quote>of this title)</quote> the following <quote>or major
automated information systems (as defined in section 2445a of this
title)</quote>.</text>
</subsection><subsection id="HC3DD135EEC3E4C4B9F0423D123E759D3"><enum>(d)</enum><header>Revised policy
guidance</header><text>Section 2506(a) of such title is amended by striking
<quote>budget allocation, weapons</quote> and inserting <quote>strategy,
management, budget allocation,</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="H689A6D1C26094870977B5BEA30204E03" section-type="subsequent-section"><enum>407.</enum><header>Construction of Act
on competition requirements for the acquisition of services</header><text display-inline="no-display-inline">Nothing in this Act or the amendments made
by this Act shall be construed to affect the competition requirements of
<external-xref legal-doc="usc" parsable-cite="usc/10/2304">section
2304</external-xref> of title 10, United States Code, with respect to the
acquisition of services.</text>
</section><section id="HEA3EAF9D6E0A4473B55B133A964ADC6D"><enum>408.</enum><header>Acquisition
Savings Program</header>
<subsection id="H3645BF819EB24807A774BD5FD0E2A10C"><enum>(a)</enum><header>Program
required</header>
<paragraph id="H5849EDADD960425B9029C4E48852F5E9"><enum>(1)</enum><header>In
general</header><text>The Secretary of Defense, acting through the Under
Secretary of Defense for Acquisition, Technology, and Logistics, shall carry
out a program to provide opportunities to provide cost-savings on
nondevelopmental items.</text>
</paragraph><paragraph id="HF8D033DA6BA6484897D7E6FC4237833E"><enum>(2)</enum><header>Savings</header><text>The
program, to be known as the Acquisition Savings Program, shall provide any
person or activity within or outside the Department of Defense with the
opportunity to offer a proposal to provide savings in excess of 15 percent, to
be known as an acquisition savings proposal, for covered contracts.</text>
</paragraph><paragraph id="H3B443B76DB9E42E09ED3A44F7F658442"><enum>(3)</enum><header>Sunset</header><text>The
program shall cease to be required on September 30, 2013.</text>
</paragraph></subsection><subsection id="HFACC275CC6EA41109DFA0CF610C2B9AA"><enum>(b)</enum><header>Qualifying
acquisition savings proposals</header><text>A proposal shall qualify as an
acquisition savings proposal for purposes of this section if it offers to
supply a nondevelopmental item that is identical to, or equivalent to (under a
performance specification or relevant commercial standard), an item being
procured under a covered contract.</text>
</subsection><subsection id="HA9D7D1071CC541A19DD1C0A9E6F3ED6C"><enum>(c)</enum><header>Review by
contracting officer</header><text>Each acquisition savings proposal shall be
reviewed by the contracting officer for the covered contract concerned to
determine if such proposal qualifies under this section and to calculate the
savings provided by such proposal.</text>
</subsection><subsection id="H57D80EABAF2A43F193FC1D39557AED06"><enum>(d)</enum><header>Actions upon
favorable review</header><text>If the contracting officer for a covered
contract determines after review of an acquisition savings proposal that the
proposal would provide an identical or equivalent nondevelopmental item at a
savings in excess of 15 percent, and that a contract award to the offeror of
the proposal would not result in the violation of a minimum purchase agreement
or otherwise cause a breach of contract for the covered contract, the
contracting officer may make an award under the covered contract to the offeror
of the acquisition savings proposal or otherwise award a contract for the
nondevelopmental item concerned to such offeror.</text>
</subsection><subsection id="H9E2D9F4E030946178C93861BCE152BC1"><enum>(e)</enum><header>Actions upon
unfavorable review</header><text>If a contracting officer determines after
review of an acquisition savings proposal that the proposal would not satisfy
the requirements of this section, the contracting officer shall debrief the
person or activity offering such proposal within 30 days after completion of
the review.</text>
</subsection><subsection id="H75ECDA7B34F146E79CF534E140E0FFB7"><enum>(f)</enum><header>Report</header><text>Not
later than March 1, 2013, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and House of Representatives a
report regarding the program, including the number of acquisition savings
proposals submitted, the number favorably reviewed, the cumulative savings, and
any further recommendations for the program.</text>
</subsection><subsection id="H27BAB15040084EE3ADBE9AB1444AA774"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H11F52AF62A224C4EB680819D1C10E207"><enum>(1)</enum><header>Nondevelopmental
item</header><text>The term <quote>nondevelopmental item</quote> has the
meaning provided for such term in section 4 of the Office of Federal
Procurement Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/41/403">41 U.S.C. 403</external-xref>).</text>
</paragraph><paragraph id="HA03B72669F944E92B45E072B0C11F767"><enum>(2)</enum><header>Covered
contract</header><text>The term <quote>covered contract</quote>—</text>
<subparagraph id="H6D4375873823447DA9F18E9BDDE75B64"><enum>(A)</enum><text>means an
indefinite delivery indefinite quantity contract for property as defined in
<external-xref legal-doc="usc" parsable-cite="usc/10/2304d">section
2304d(2)</external-xref> of title 10, United States Code; and</text>
</subparagraph><subparagraph id="H4814EB89EAAD474687A61363726231AF"><enum>(B)</enum><text>does not include
any contract awarded under an exception to competitive acquisition authorized
by the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/631">15 U.S.C. 631 et seq.</external-xref>)</text>
</subparagraph></paragraph><paragraph id="H831099649E9444B99975FF646E73D154"><enum>(3)</enum><header>Performance
specification</header><text display-inline="yes-display-inline">The term
<quote>performance specification</quote> means a specification of required item
functional characteristics.</text>
</paragraph><paragraph id="H9032560CF5164482952B07856AB38214"><enum>(4)</enum><header>Commercial
standard</header><text>The term <quote>commercial standard</quote> means a
standard used in industry promulgated by an accredited standards organizations
that is not a Federal entity.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H8B2F19D833DE4983BB8791D7CFBE1069" section-type="subsequent-section"><enum>409.</enum><header>Sense of Congress
regarding compliance with the Berry Amendment, the Buy American Act, and labor
standards of the United States</header><text display-inline="no-display-inline">In order to create jobs, level the playing
field for domestic manufacturers, and strengthen economic recovery, it is the
sense of Congress that the Department of Defense should—</text>
<paragraph id="HB7A2C895AD6B460F820EE8D87FEF07F1"><enum>(1)</enum><text>ensure full
contractor and subcontractor compliance with the Berry Amendment
(<external-xref legal-doc="usc" parsable-cite="usc/10/2533a">10 U.S.C.
2533a</external-xref>) and the Buy American Act (<external-xref legal-doc="usc" parsable-cite="usc/41/10a">41 U.S.C. 10a et seq.</external-xref>); and</text>
</paragraph><paragraph id="H07CE4DE29BFC4CA583D717491C03DC63"><enum>(2)</enum><text display-inline="yes-display-inline">not procure products made by manufacturers
in the United States that violate labor standards as defined under the laws of
the United States.</text>
</paragraph></section><section display-inline="no-display-inline" id="H8E5FBDA29D484CD197AF398254831BB6" section-type="subsequent-section"><enum>410.</enum><header>Industrial Base
Council and Fund</header>
<subsection id="H7525DBFF36F2442A9918C4E6D863698A"><enum>(a)</enum><header>Industrial Base
Council</header>
<paragraph display-inline="no-display-inline" id="H5C4E374D6E9C49A08361DE03C4FD0EBF"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/7">Chapter 7</external-xref> of title 10, United
States Code, is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HFA8DBA96F08E4760B1F7D42A1617E334" style="USC">
<section id="HC294B02C31A64DDFACEC17FCF53F42DC"><enum>188.</enum><header>Industrial Base
Council</header>
<subsection id="H445E98F161DB4FF7B9E7313FDAD7768C"><enum>(a)</enum><header>Council
established</header><text>There is in the Department of Defense an Industrial
Base Council.</text>
</subsection><subsection id="H490DE69C37BC4F32A85A9FEC359C49BE"><enum>(b)</enum><header>Mission</header><text>The
mission of the Industrial Base Council is to assist the Secretary in all
matters pertaining to the industrial base of the Department of Defense,
including matters pertaining to the national defense technology and industrial
base included in chapter 148 of this title.</text>
</subsection><subsection id="H7C468BE93A5B474DAE0CFB6E0A20ECDB"><enum>(c)</enum><header>Membership</header><text>The
following officials of the Department of Defense shall be members of the
Council:</text>
<paragraph id="HA00C85701C0D4A1FA9431212EF8A05CE"><enum>(1)</enum><text>The Chairman of
the Council, who shall be the Under Secretary of Defense for Acquisition,
Technology, and Logistics, the functions of which may be delegated by the Under
Secretary only to the Principal Deputy Under Secretary of Defense for
Acquisition, Technology, and Logistics.</text>
</paragraph><paragraph id="H3D4AB74FF99B4CE08A952D31A294452F"><enum>(2)</enum><text>The Executive
Director of the Council, who shall be an official from within the Office of the
Under Secretary responsible for industrial base matters and who shall report
directly to the Under Secretary or the Principal Deputy Under Secretary.</text>
</paragraph><paragraph id="H0A108FB842A74229B10E6049487719B0"><enum>(3)</enum><text>Officials from
within the Office of the Secretary of Defense, as designated by the Secretary,
with direct responsibility for matters pertaining to following areas:</text>
<subparagraph id="H7D8F2AC5E5BD477EA2AF6572F90D27CF"><enum>(A)</enum><text>Manufacturing.</text>
</subparagraph><subparagraph id="HA2086CFB666549848EECFD2190B42D57"><enum>(B)</enum><text>Research and
development.</text>
</subparagraph><subparagraph id="H4F36AA0390AA41FF9A23DB41B1EDEAD0"><enum>(C)</enum><text>Systems
engineering and system integration.</text>
</subparagraph><subparagraph id="H03BC5D9B49FA4AB5ACF2127DBCFC91BC"><enum>(D)</enum><text>Services.</text>
</subparagraph><subparagraph id="H7215C23435BA44D3A945F75FE1002423"><enum>(E)</enum><text>Information
Technology.</text>
</subparagraph><subparagraph id="HE6A3BC06EFD143FBAE8F63499FEF7874"><enum>(F)</enum><text>Sustainment and
logistics.</text>
</subparagraph></paragraph><paragraph id="H40142A83A1DB43BA8C7CA189F6B3B901"><enum>(4)</enum><text>The Director of
the Defense Logistics Agency.</text>
</paragraph><paragraph id="H8F14E7F5DE7346AB88E65753FC55E9E2"><enum>(5)</enum><text>Officials from the
military departments, as designated by the Secretary of each military
department, with responsibility for industrial base matters relevant to the
military department concerned.</text>
</paragraph></subsection><subsection id="HAAC065E527474932B6419B017D609480"><enum>(d)</enum><header>Duties</header><text>The
Council shall assist the Secretary in the following:</text>
<paragraph id="H80C18A59E53F4CBA857AD51FC3D9B133"><enum>(1)</enum><text>Providing input on
industrial base matters to strategy reviews, including quadrennial defense
reviews performed pursuant to section 118 of this title.</text>
</paragraph><paragraph id="HF3E2038C97814223A1A1546C49427CE3"><enum>(2)</enum><text>Managing the
industrial base.</text>
</paragraph><paragraph id="H3AC27BA3913E4AFBBC970E1E04FE3EC5"><enum>(3)</enum><text>Providing
recommendations to the Secretary on budget matters pertaining to the industrial
base.</text>
</paragraph><paragraph id="HFF1C5C4E093F4091B9AE60651FDDB46F"><enum>(4)</enum><text display-inline="yes-display-inline">Providing recommendations to the Secretary
on supply chain management and supply chain vulnerability.</text>
</paragraph><paragraph id="HBD8CA5C9C21F421EBC3FE3F8702CAD58"><enum>(5)</enum><text>Providing input on
industrial base matters to defense acquisition policy guidance.</text>
</paragraph><paragraph id="H699F98CED1054CF3B08C84967209BC86"><enum>(6)</enum><text>Issuing and
revising the Department of Defense technology and industrial base guidance
required by section 2506 of this title.</text>
</paragraph><paragraph id="H90C7CE4E7ADA4994B1262D7D29518CFA"><enum>(7)</enum><text>Such other duties
as are assigned by the Secretary.</text>
</paragraph></subsection><subsection id="H4BD0A94BFBCD4CB2B308AD91D43EA4DE"><enum>(e)</enum><header>Reporting of
activities</header><text>The Secretary shall include a section describing the
activities of the Council in the annual report to Congress required by section
2505 of this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA02B2DE6057C4998BA9A2738FA03CB76"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HCD4479C6E60D498184712A935EE90CF9" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">188. Industrial Base
Council.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HC402446199A947DFA20710FEF7D7C2F1"><enum>(b)</enum><header>Industrial Base
Fund</header>
<paragraph display-inline="no-display-inline" id="H891BBCB8DC044DBB871917AEE2A85EA9"><enum>(1)</enum><header>In
general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/148">Chapter 148</external-xref> of title 10,
United States Code, is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H5B44C16A5BCB46DE89BDC89879F31673" style="USC">
<section id="H49E2DC629D7E4F7D8964730F9831DF85"><enum>2508.</enum><header>Industrial
Base Fund</header>
<subsection id="H66588A378C7B476B9856ACC0B964A0A6"><enum>(a)</enum><header>Establishment</header><text>The
Secretary of Defense shall establish an Industrial Base Fund (in this section
referred to as the <quote>Fund</quote>).</text>
</subsection><subsection id="H4332867516184A92BBA60DD2C732CCD4"><enum>(b)</enum><header>Control of
fund</header><text>The Fund shall be under the control of the Industrial Base
Council established pursuant to section 188 of this title.</text>
</subsection><subsection id="H184BC234AC9B4DECBCD969E278CE0F0C"><enum>(c)</enum><header>Amounts in
fund</header><text>The Fund shall consist of amounts appropriated or otherwise
made available to the Fund.</text>
</subsection><subsection id="HD5A5F218A2154AC4B3E410A9355423E2"><enum>(d)</enum><header>Use of
fund</header><text>Subject to subsection (e), the Fund shall be used—</text>
<paragraph id="HB46DD5AC4B6549DB8853B294DF51FD3A"><enum>(1)</enum><text>to support the
monitoring and assessment of the industrial base required by this
chapter;</text>
</paragraph><paragraph id="HF75504F4820B472DB9E47EBC35645B22"><enum>(2)</enum><text>to address
critical issues in the industrial base relating to urgent operation
needs;</text>
</paragraph><paragraph id="H3B17313DFFEE4885837A660C44F322BD"><enum>(3)</enum><text>to support efforts
to expand the industrial base; and</text>
</paragraph><paragraph id="HB87DD945D5A948748951B780D4BB1FF9"><enum>(4)</enum><text display-inline="yes-display-inline">to address supply chain
vulnerabilities.</text>
</paragraph></subsection><subsection id="H958B29BD4BC14CC294E05BFE45738958"><enum>(e)</enum><header>Use of fund
subject to appropriations</header><text>The authority of the Secretary of
Defense to use the Fund under this section in any fiscal year is subject to the
availability of appropriations for that purpose.</text>
</subsection><subsection id="H9F3ACDDAEBBA4E4BA692F67ECC165ECC"><enum>(f)</enum><header>Expenditures</header><text>The
Secretary shall establish procedures for expending monies in the Fund in
support of the uses identified in subsection (d), including the
following:</text>
<paragraph id="H6683BEFB88314E3092B34BF28BFD260A"><enum>(1)</enum><text>Direct obligations
from the Fund.</text>
</paragraph><paragraph id="HCE59D9F98F1E4004AE85EC2E4385CFCB"><enum>(2)</enum><text>Transfers of
monies from the Fund to relevant appropriations of the Department of
Defense.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFF3849BB71874AE8A677F4D5249C2A32"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H5BBC923E16E544468ACEF8B9ACE23DC3" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">2508. Industrial Base
Fund.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>V</enum><header>Other
matters</header>
<section id="HCCE03F14B79444E1AAB411C95CF57D80"><enum>501.</enum><header>Clothing
allowance requirement</header><text display-inline="no-display-inline">The
Comptroller General shall conduct a study of the items purchased under
<external-xref legal-doc="usc" parsable-cite="usc/37/418">section
418</external-xref> of title 37, United States Code, to determine if there is
sufficient domestic production of such items to adequately supply members of
the Armed Forces and shall transmit the results of such study to the Secretary
of Defense. Not later than 6 months after receiving the results of such study,
the Secretary of Defense shall transmit to the Committees on Armed Services of
the Senate and the House of Representatives an evaluation on whether such items
under the study should be considered subject to
<external-xref legal-doc="usc" parsable-cite="usc/10/2533a">section
2533a</external-xref> of title 10, United States Code (popularly known as the
<quote>Berry Amendment</quote>).</text>
</section><section id="H44A469EB6E194964B5CCFAEB19EEA280" section-type="subsequent-section"><enum>502.</enum><header>Requirement that
cost or price to the Federal Government be given at least equal importance as
technical or other criteria in evaluating competitive proposals for defense
contracts</header>
<subsection id="H6415C31076D24C539EF2A1CEE1C2F7E4"><enum>(a)</enum><header>Requirement</header><text display-inline="yes-display-inline">Subparagraph (A) of
<external-xref legal-doc="usc" parsable-cite="usc/10/2305">section
2305(a)(3)</external-xref> of title 10, United States Code, is amended by
striking <quote>proposals; and</quote> at the end of clause (ii) and all that
follows through the end of the subparagraph and inserting the following:
<quote>proposals and that must be assigned importance at least equal to all
evaluation factors other than cost or price when combined.</quote>.</text>
</subsection><subsection id="HF592798EC1984D0FA128C9ABBCDEB8F3"><enum>(b)</enum><header>Waiver</header><text>Section
2305(a)(3) of such title is further amended by striking subparagraph (B) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H8170EBDEE66B4498A2D165027A817044" style="USC">
<subparagraph id="H012304E151B94E89A8D4BBEEA6DF4D2B" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">The requirement of subparagraph (A)(ii)
relating to assigning at least equal importance to evaluation factors of cost
or price may be waived by the head of the agency. The authority to issue a
waiver under this subparagraph may not be
delegated.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H338EC966CBA24D2094B53DED7A7129DF"><enum>(c)</enum><header>Report</header><text>Section
2305(a)(3) of such title is further amended by adding at the end the following
new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HA0E33E4F8FF2495C8507001876132B89" style="USC">
<subparagraph id="H51DB98E6881F44D7B833FE0E1B79DE89" indent="up2"><enum>(C)</enum><text display-inline="yes-display-inline">Not later than 180 days after the end of
each fiscal year, the Secretary of Defense shall submit to Congress, and post
on a publicly available website of the Department of Defense, a report
containing a list of each<linebreak></linebreak><pagebreak></pagebreak> waiver issued by the head of
an agency under subparagraph (B) during the preceding fiscal
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section>
Passed the House of
Representatives April 28, 2010.
Lorraine C. Miller,
Clerk.