[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6360 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6360

   To increase accountability in contracts for overseas contingency 
                  operations, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 7, 2012

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

_______________________________________________________________________

                                 A BILL


 
   To increase accountability in contracts for overseas contingency 
                  operations, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Oversight and Accountability in 
Wartime Contracting Act of 2012''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
       TITLE I--ACCOUNTABILITY IN OVERSEAS CONTINGENCY OPERATIONS

Sec. 101. Limitations applicable to certain contracts in connection 
                            with overseas contingency operations.
Sec. 102. Revisions to justification and approval requirements for 
                            contracts awarded using procedures other 
                            than competitive procedures.
Sec. 103. Contractor consent to jurisdiction for certain civil actions 
                            under certain contracts for work overseas.
Sec. 104. Information on corporate contractor performance and integrity 
                            through the Federal Awardee Performance and 
                            Integrity Information System.
Sec. 105. Inclusion of data on contractor performance in past 
                            performance databases for executive agency 
                            source selection decisions.
Sec. 106. Sustainability requirements for certain capital projects 
                            funded by the Department of Defense for 
                            overseas contingency operations.
Sec. 107. Expansion of oversight offices in Department of Defense, the 
                            Department of State, and the United States 
                            Agency for International Development.
Sec. 108. Inspector General reviews and evaluations.
Sec. 109. Tax treatment of certain civilian employees of Department of 
                            Defense in combat zones.
 TITLE II--MATTERS RELATING TO SECURITY ASSISTANCE AND COUNTERTERRORISM

Sec. 201. Report on United States strategy relating to Afghanistan.
Sec. 202. Improving United States foreign police assistance activities.
Sec. 203. United States plan for sustaining the Afghanistan National 
                            Security Forces.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Armed Services, the Committee 
                on Foreign Relations, the Committee on Homeland 
                Security and Governmental Affairs, and the Committee on 
                Appropriations of the Senate; and
                    (B) the Committee on Armed Services, the Committee 
                on Foreign Affairs, the Committee on Oversight and 
                Government Reform, and the Committee on Appropriations 
                of the House of Representatives.
            (2) Federal acquisition regulatory council.--The term 
        ``Federal Acquisition Regulatory Council'' means the Federal 
        Acquisition Regulatory Council under section 1302(a) of title 
        41, United States Code.
            (3) Overseas contingency operation.--The term ``overseas 
        contingency operation'' means a military operation outside the 
        United States and its territories and possessions that is--
                    (A) a contingency operation, as that term is 
                defined in subparagraph (A) of section 101(a)(13) of 
                title 10, United States Code; or
                    (B) a contingency operation, as that term is 
                defined in subparagraph (B) of section 101(a)(13) of 
                title 10, United States Code, but only if such 
                operation involves actual or potential hostilities 
                against an enemy of the United States or against an 
                opposing military force.

       TITLE I--ACCOUNTABILITY IN OVERSEAS CONTINGENCY OPERATIONS

SEC. 101. LIMITATIONS APPLICABLE TO CERTAIN CONTRACTS IN CONNECTION 
              WITH OVERSEAS CONTINGENCY OPERATIONS.

    (a) Limitation on Contract Periods.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Federal Acquisition Regulatory 
        Council shall amend the Federal Acquisition Regulation to 
        provide that the contract period of contracts entered into by a 
        covered agency in connection with an overseas contingency 
        operation shall be limited to the contract periods specified in 
        paragraph (2), except as provided in paragraph (3).
            (2) Contract periods.--The contract periods specified in 
        this paragraph are as follows:
                    (A) Three years in the case of competitively bid 
                contracts.
                    (B) One year in the case of non-competitively bid 
                contracts and competitively bid contracts for which 
                only one offer was received by the covered agency.
            (3) Waiver.--The amendment of the Federal Acquisition 
        Regulation required by this subsection shall provide that the 
        head of a covered agency may waive the applicability of the 
        limitations in paragraph (2) to a contract if--
                    (A) the contracting officer certifies in writing as 
                part of a justification and approval (J&A) that the 
                agency has concluded, on the basis of market research 
                conducted for purposes of the justification and 
                approval, that--
                            (i) the period of performance for the 
                        contract in excess of the limitations in 
                        paragraph (2) will be in the best interest of 
                        the United States; and
                            (ii) the offeror has submitted information 
                        in a bid or proposal sufficient to show that 
                        representations by the offeror about the 
                        offeror's ability to timely, sufficiently, and 
                        cost-effectively perform the contract, if 
                        awarded, are reasonable;
                    (B) the contracting officer conducts the cost 
                analysis required by section 15.404-1 of the Federal 
                Acquisition Regulation; and
                    (C) the head of the agency determines in writing 
                based on the information obtained pursuant to 
                subparagraphs (A) and (B) that the waiver is in the 
                best interests of the United States.
    (b) Limitation on Subcontracting Tiers for Service Contracts.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Federal Acquisition Regulatory 
        Council shall amend the Federal Acquisition Regulation to 
        provide that, commencing 90 days after the date of the 
        commencement or designation of a military operation as an 
        overseas contingency operation, any contract for services 
        entered into by a covered agency in connection with such 
        contingency operation may only have a single tier of 
        subcontractors, except as provided in paragraph (2).
            (2) Waiver.--The amendment of the Federal Acquisition 
        Regulation required by this subsection shall provide that the 
        head of a covered agency may waive the applicability of the 
        limitation in paragraph (1) to a contract if--
                    (A) the contracting officer includes in the 
                contract a provision for liquidated damages (in an 
                amount specified by the contracting officer in the 
                contract) in favor of the United States in the event a 
                subcontractor under the contract at any tier is 
                determined by the contracting officer to have acted in 
                the performance of the contract in a manner that is 
                illegal or unethical or harms the strategic political 
                or military goals of the United States;
                    (B) the contracting officer certifies in writing a 
                justification and approval that the agency has 
                concluded, on the basis of market research conducted 
                for purposes of the justification and approval, that, 
                if the contract is performed in component parts, no 
                combination of contractors within the market exists 
                that could perform the contract either by prime 
                contractor alone or through the use of subcontractors 
                only at a single tier; and
                    (C) the head of the agency determines in writing 
                based on the information obtained pursuant to 
                subparagraphs (A) and (B) that the waiver is in the 
                best interests of the United States.
            (3) Report.--Each covered agency shall compile and submit 
        to the appropriate committees of Congress an annual report on 
        the waivers (if any) under paragraph (2) granted by the agency 
        during the year covered by the report. The report shall contain 
        a description of the manner in which subparagraphs (A), (B), 
        and (C) of paragraph (2) were implemented with respect to each 
        waiver, including, in the case of subparagraph (B), a copy of 
        the justification and approval.
    (c) Definitions.--In this section:
            (1) Covered agency.--The term ``covered agency'' means the 
        following:
                    (A) The Department of Defense.
                    (B) The Department of State.
                    (C) The United States Agency for International 
                Development.
            (2) Competitively bid.--The term ``competitively bid'', 
        with respect to a contract, means a contract awarded through 
        the use of competitive procedures.
            (3) Non-competitively bid.--The term ``non-competitively 
        bid'', with respect to a contract, means a contract awarded 
        through the use of procedures other than competitive 
        procedures.

SEC. 102. REVISIONS TO JUSTIFICATION AND APPROVAL REQUIREMENTS FOR 
              CONTRACTS AWARDED USING PROCEDURES OTHER THAN COMPETITIVE 
              PROCEDURES.

    (a) Additional Justification and Approval for Use of Noncompetitive 
Procedures for Sole-source Contracts of Unusual and Compelling 
Urgency.--
            (1) Department of defense and related agencies.--Section 
        2304(c)(2) of title 10, United States Code, is amended by 
        inserting before the semicolon at the end the following: ``, 
        except that in any case in which the agency solicits a bid or 
        proposal from only one source, the head of an agency may use 
        the authority in this paragraph only if the contracting officer 
        certifies in writing a justification and approval (J&A) (in 
        addition to the justification and approval required under 
        subsection (f)) of the reasons necessary for using the 
        authority in this paragraph to solicit a bid or proposal from 
        only one source, and such certifications are compiled and 
        submitted annually in a report to the Committee on Armed 
        Services, the Committee on Foreign Relations, the Committee on 
        Homeland Security and Governmental Affairs, and the Committee 
        on Appropriations of the Senate and the Committee on Armed 
        Services, the Committee on Foreign Affairs, the Committee on 
        Oversight and Government Reform, and the Committee on 
        Appropriations of the House of Representatives''.
            (2) Other executive agencies.--Section 3304(a)(2) of title 
        41, United States Code, is amended by inserting before the 
        semicolon at the end the following: ``, except that in any case 
        in which the agency solicits a bid or proposal from only one 
        source, the head of an agency may use the authority in this 
        paragraph only if the contracting officer certifies in writing 
        a justification and approval (J&A) (in addition to the 
        justification and approval required under subsection (e)) of 
        the reasons necessary for using the authority in this paragraph 
        to solicit a bid or proposal from only one source, and such 
        certifications are compiled and submitted annually in a report 
        to the Committee on Armed Services, the Committee on Foreign 
        Relations, the Committee on Homeland Security and Governmental 
        Affairs, and the Committee on Appropriations of the Senate and 
        the Committee on Armed Services, the Committee on Foreign 
        Affairs, the Committee on Oversight and Government Reform, and 
        the Committee on Appropriations of the House of 
        Representatives''.
    (b) Additional Requirements Relating to Approval of Justification 
for Contracts Awarded Using Noncompetitive Procedures.--
            (1) Department of defense and related agencies.--Section 
        2304(f)(1)(B) of title 10, United States Code, is amended--
                    (A) in clause (ii), by striking ``or'' after the 
                semicolon at the end;
                    (B) in clause (iii)--
                            (i) by striking ``$75,000,000'' and 
                        inserting ``$50,000,000''; and
                            (ii) by striking ``and'' after the 
                        semicolon at the end and inserting ``or''; and
                    (C) by adding at the end the following new clause:
                            ``(iv) in the case of a contract for an 
                        amount exceeding $100,000,000, by the head of 
                        the agency; and''.
            (2) Other executive agencies.--Section 3304(e)(B) of title 
        41, United States Code, is amended--
                    (A) in clause (ii), by striking ``or'' after the 
                semicolon at the end;
                    (B) in clause (iii), by striking ``and'' after the 
                semicolon at the end and inserting ``or''; and
                    (C) by adding at the end the following new clause:
                            ``(iv) exceeding $100,000,000, by the head 
                        of the executive agency; and''.

SEC. 103. CONTRACTOR CONSENT TO JURISDICTION FOR CERTAIN CIVIL ACTIONS 
              UNDER CERTAIN CONTRACTS FOR WORK OVERSEAS.

    (a) Consent to Jurisdiction.--The Federal Acquisition Regulatory 
Council shall amend the Federal Acquisition Regulation to require that 
any covered contract provides that--
            (1) the contractor consents to personal jurisdiction over 
        the contractor with respect to any covered civil action, 
        including a covered civil action against one or more employees 
        of the contractor for which the contractor may be liable under 
        theories of vicarious liability;
            (2) the contractor consents to personal jurisdiction in the 
        United States District Court for the District of Columbia for a 
        covered civil action in which--
                    (A) the events giving rise to the cause of action 
                occurred outside the United States; and
                    (B) personal jurisdiction cannot be established in 
                another Federal court;
            (3) consent to personal jurisdiction under paragraph (2) 
        shall not operate to deprive or terminate personal jurisdiction 
        of the contractor in any court that otherwise has personal 
        jurisdiction under another provision of law or to limit any 
        cause of action or remedy under any other provision of law;
            (4) if the covered contract was awarded to a contractor 
        that does not maintain an office in the United States, the 
        contractor shall designate an agent located in the United 
        States for service of process in any covered civil action;
            (5) except as provided in paragraph (6), any covered civil 
        action shall be analyzed in accordance with the laws of the 
        United States; and
            (6) the substantive law of the State (including the 
        District of Columbia) in which the covered civil action is 
        brought shall be the law applicable to a covered civil action 
        if--
                    (A) the substantive law otherwise applicable to the 
                covered civil action would be the law of the location 
                where the events giving rise to the cause of action 
                occurred; and
                    (B) the location is designated as a hazardous duty 
                zone by the Secretary of Defense.
    (b) Applicability.--The amendment to the Federal Acquisition 
Regulation made under subsection (a) shall apply with respect to any 
covered contract that is entered into on or after the effective date of 
the amendment under subsection (a).
    (c) Definitions.--In this section:
            (1) The term ``contractor'', with respect to a covered 
        contract, includes the contractor under the contract, any 
        subcontractor under the contract, any subordinate contractor 
        under the contract, any subsidiary, parent company, or 
        successor entity of the contractor formed to act as a successor 
        in interest of the contractor, and any employee thereof 
        performing work under or in connection with the contract.
            (2) The term ``covered civil action'' includes the 
        following:
                    (A) A civil action alleging a rape or sexual 
                assault of or serious bodily injury to a member of the 
                Armed Forces of the United States, a civilian employee 
                of the United States, or an employee of a company 
                performing work arising out of the performance of a 
                covered contract for the United States who is a citizen 
                or national of the United States.
                    (B) A civil action alleging the wrongful death of a 
                member of the Armed Forces of the United States, a 
                civilian employee of the United States, or an employee 
                of a company performing work arising out of the 
                performance of a covered contract for the United States 
                who is a citizen or national of the United States 
                brought by a family member of the deceased.
                    (C) A civil action alleging breach of contract or 
                misrepresentation of a covered contract.
            (3) The term ``covered contract''--
                    (A) means a contract--
                            (i) for work to be performed outside the 
                        United States that is awarded or entered into 
                        by the United States (including any executive 
                        department, agency, or independent 
                        establishment thereof); and
                            (ii) with a value of not less than 
                        $1,000,000; and
                    (B) includes any subcontract or subordinate 
                contract under a contract described in subparagraph 
                (A).
            (4) The term ``rape'' means conduct that would violate 
        section 920(a) of title 10, United States Code (article 120(a) 
        of the Uniform Code of Military Justice), if the conduct was 
        committed by a person subject to chapter 47 of title 10, United 
        States Code (the Uniform Code of Military Justice).
            (5) The term ``serious bodily injury'' has the meaning 
        given that term in section 1365 of title 18, United States 
        Code.
            (6) The term ``sexual assault'' means conduct that would 
        violate section 920 (c), (h), or (m) of title 10, United States 
        Code (article 120 (c), (h), or (m) of the Uniform Code of 
        Military Justice), if the conduct was committed by a person 
        subject to chapter 47 of title 10, United States Code (the 
        Uniform Code of Military Justice).
            (7) The term ``United States'', in a geographic sense--
                    (A) means the several States and the District of 
                Columbia; and
                    (B) does not include any military installation or 
                facility located outside the area described in 
                subparagraph (A).

SEC. 104. INFORMATION ON CORPORATE CONTRACTOR PERFORMANCE AND INTEGRITY 
              THROUGH THE FEDERAL AWARDEE PERFORMANCE AND INTEGRITY 
              INFORMATION SYSTEM.

    (a) Inclusion of Corporations Among Covered Persons.--Subsection 
(b) of section 872 of the Duncan Hunter National Defense Authorization 
Act for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 4555) is 
amended by inserting ``(including a corporation)'' after ``Any person'' 
both places it appears.
    (b) Information on Corporations.--Subsection (d) of such section is 
amended by adding at the end the following new paragraph:
            ``(3) Information on corporations.--The information on a 
        corporation in the database shall, to the extent practicable, 
        include information on any parent, subsidiary, or successor 
        entities to the corporation in manner designed to give the 
        acquisition officials using the database a comprehensive 
        understanding of the performance and integrity of the 
        corporation in carrying out Federal contracts and grants.''.

SEC. 105. INCLUSION OF DATA ON CONTRACTOR PERFORMANCE IN PAST 
              PERFORMANCE DATABASES FOR EXECUTIVE AGENCY SOURCE 
              SELECTION DECISIONS.

    (a) Strategy Required.--Not later than 180 days after the date of 
the enactment of this Act, the Federal Acquisition Regulatory Council 
shall develop a strategy for ensuring that timely, accurate, and 
complete information on contractor performance is included in past 
performance databases used by executive agencies for making source 
selection decisions.
    (b) Elements.--The strategy required by subsection (a) shall, at a 
minimum--
            (1) establish standards for the timeliness and completeness 
        of past performance submissions for purposes of databases 
        described in subsection (a);
            (2) assign responsibility and management accountability for 
        the completeness of past performance submissions for such 
        purposes; and
            (3) ensure that past performance submissions for such 
        purposes are consistent with award fee evaluations in cases 
        where such evaluations have been conducted.
    (c) Contractor Comments.--Not later than 180 days after the date of 
the enactment of this Act, the Federal Acquisition Regulatory Council 
shall revise the Federal Acquisition Regulation to require the 
following:
            (1) That affected contractors are provided, in a timely 
        manner, information on contractor performance to be included in 
        past performance databases in accordance with subsection (a).
            (2) That such contractors are afforded up to 14 calendar 
        days, from the date of delivery of the information provided in 
        accordance with paragraph (1), to submit comments, rebuttals, 
        or additional information pertaining to past performance for 
        inclusion in such databases.
            (3) That agency evaluations of contractor past performance, 
        including any information submitted under paragraph (2), are 
        included in the relevant past performance database not later 
        than the date that is 14 days after the date of delivery of the 
        information provided in accordance with paragraph (1).
    (d) Construction.--Nothing in this section shall be construed to 
prohibit a contractor from submitting comments, rebuttals, or 
additional information pertaining to past performance after the period 
described in subsection (c)(2) has elapsed or to prohibit a contractor 
from challenging a past performance evaluation in accordance with 
applicable laws, regulations, or procedures.
    (e) Executive Agency Defined.--In this section, the term 
``executive agency'' has the meaning given that term in section 133 of 
title 41, United States Code, except that the term excludes the 
Department of Defense and the military departments.

SEC. 106. SUSTAINABILITY REQUIREMENTS FOR CERTAIN CAPITAL PROJECTS 
              FUNDED BY THE DEPARTMENT OF DEFENSE FOR OVERSEAS 
              CONTINGENCY OPERATIONS.

    (a) Certification on Sustainability Required Before Commencement of 
Projects.--
            (1) In general.--Commencing 60 days after the date of the 
        enactment of this Act--
                    (A) amounts authorized to be appropriated for the 
                Department of Defense may not be obligated or expended 
                for a capital project described in subsection (b) 
                unless the Secretary of Defense, in consultation with 
                the United States commander of military operations in 
                the country in which the project will be carried out, 
                certifies to the appropriate committees of Congress 
                that the country has the capability (in both financial 
                and human resources) to effectively maintain and 
                utilize the project;
                    (B) amounts authorized to be appropriated for the 
                Department of State may not be obligated or expended 
                for a capital project described in subsection (b) 
                unless the Secretary of State, in consultation with the 
                Chief of Mission in the country in which the project 
                will be carried out, certifies to the appropriate 
                committees of Congress that the country has the 
                capability (in both financial and human resources) to 
                effectively maintain and utilize the project; and
                    (C) amounts authorized to be appropriated for the 
                United States Agency for International Development may 
                not be obligated or expended for a capital project 
                described in subsection (b) unless the Administrator of 
                the United States Agency for International Development, 
                in consultation with the Mission Director and the Chief 
                of Mission in the country in which the project will be 
                carried out, certifies to the appropriate committees of 
                Congress that the country has the capability (in both 
                financial and human resources) to effectively maintain 
                and utilize the project.
            (2) Considerations.--In making a certification under 
        paragraph (1) with respect to a capital project, the Secretary 
        of Defense, the Secretary of State, and the Administrator of 
        the United States Agency for International Development shall 
        take into account the status of the maintenance and utilization 
        of capital projects, if any, in the country in which the 
        project is to be carried out that were previously financed or 
        assisted by the United States.
    (b) Capital Projects.--
            (1) In general.--A capital project described in this 
        subsection is any capital project overseas for an overseas 
        contingency operation that is for the benefit of the host 
        country, is funded by the Department of Defense, the Department 
        of State, or the United States Agency for International 
        Development using covered funds, and has an estimated value in 
        excess of $1,000,000.
            (2) Exclusion.--A capital project described in this 
        subsection does not include any project for military 
        construction (as that term is defined in section 114(b) of 
        title 10, United States Code) or a military family housing 
        project under section 2821 of such title.
    (c) Termination of Unsustainable Projects in Progress.--
            (1) In general.--Effective 180 days after the date of the 
        enactment of this Act, the Secretary of Defense, the Secretary 
        of State, or the Administrator of the United States Agency for 
        International Development, as applicable, shall terminate each 
        capital project described in subsection (b) that is in 
        progress, but not completed, as of the date of the enactment of 
        this Act if the Secretary or Administrator, as applicable--
                    (A) determines, in consultation with the United 
                States commander of military operations in the country 
                in which the project is being carried out, that the 
                country does not have the capability (in both financial 
                and human resources) to effectively maintain and 
                utilize the project; or
                    (B) has not made any determination on the matters 
                described in subparagraph (A) with respect to the 
                project.
            (2) Waiver.--The Secretary of Defense, the Secretary of 
        State, or the Administrator of the United States Agency for 
        International Development, as applicable, may waive the 
        requirement for termination of a project under paragraph (1) if 
        the Secretary or Administrator, as applicable, submits to the 
        appropriate committees of Congress--
                    (A) a written certification that the project is 
                vital to a military or security objective of the United 
                States; and
                    (B) a plan of how the country will have the 
                capability required under paragraph (1) by the time of 
                the capital project's completion.
    (d) Definitions.--In this section:
            (1) The term ``capital project'' has the meaning given the 
        term in section 308 of the Aid, Trade, and Competitiveness Act 
        of 1992 (title III of Public Law 102-549; 22 U.S.C. 2421e; 106 
        Stat. 3660).
            (2) The term ``covered funds'' means the following:
                    (A) Amounts in the Afghanistan Infrastructure Fund.
                    (B) Amounts in the Afghanistan Security Forces 
                Funds.
                    (C) Amounts available for the Commanders' Emergency 
                Response Program.
                    (D) Amounts available for the Iraq Relief and 
                Reconstruction Fund.
                    (E) Any other funds authorized to be appropriated 
                for the Department of Defense, the Department of State, 
                or the United States Agency for International 
                Development, as applicable, that are made available for 
                a capital project.

SEC. 107. EXPANSION OF OVERSIGHT OFFICES IN DEPARTMENT OF DEFENSE, THE 
              DEPARTMENT OF STATE, AND THE UNITED STATES AGENCY FOR 
              INTERNATIONAL DEVELOPMENT.

    (a) Department of Defense.--
            (1) Assistant secretary of defense for contingency 
        contracting.--Section 138(b) of title 10, United States Code, 
        is amended by adding at the end the following new paragraph:
    ``(11) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Contingency Contracting. The Assistant 
Secretary of Defense for Contingency Contracting is the principal 
adviser to the Secretary of Defense and the Under Secretary of Defense 
for Acquisition, Technology, and Logistics on matters relating to 
planning, funding, staffing, and managing contingency contracting of 
the Department of Defense.''.
            (2) Requirement to establish office of contingency 
        contracting.--The Secretary of Defense shall rename and expand 
        the Office of Program Support in the Office of the Under 
        Secretary of Defense for Acquisition, Technology, and Logistics 
        as the Office of Contingency Contracting. The Office of 
        Contingency Contracting shall be headed by the Assistant 
        Secretary of Defense for Contingency Contracting and shall be 
        responsible for planning, funding, staffing, and managing 
        contingency contracting in the Department of Defense.
    (b) Department of State.--
            (1) Assistant secretary of state for contingency 
        contracting.--
                    (A) In general.--There shall be in the Department 
                of State an Assistant Secretary of State for 
                Contingency Contracting who shall be the principal 
                adviser to the Secretary of State on matters relating 
                to planning, funding, staffing, and managing 
                contingency contracting of the Department of State.
                    (B) Conforming amendments.--(i) Section 1(c)(1) of 
                the State Department Basic Authorities Act of 1956 (22 
                U.S.C. 2651a(c)(1)) is amended by striking ``24'' and 
                inserting ``25''.
                    (ii) Section 5315 of title 5, United States Code, 
                is amended by striking ``Assistant Secretaries of State 
                (24)'' and inserting ``Assistant Secretaries of State 
                (25)''.
            (2) Requirement to establish office of contingency 
        contracting.--The Secretary of State shall establish an Office 
        of Contingency Contracting in the Department of State. The 
        Office of Contingency Contracting shall be headed by the 
        Assistant Secretary of State for Contingency Contracting and 
        shall be responsible for planning, funding, staffing, and 
        managing contingency contracting in the Department of State.
            (3) Definition.--In this subsection, the term ``contingency 
        contracting'' means all stages of the process of acquiring 
        property or services by the Department of State during an 
        overseas contingency operation.
    (c) USAID.--
            (1) Assistant administrator for contingency contracting.--
        There shall be in the United States Agency for International 
        Development an Assistant Administrator for Contingency 
        Contracting who shall be the principal adviser to the 
        Administrator of the Agency on matters relating to planning, 
        funding, staffing, and managing contingency contracting of the 
        Agency.
            (2) Requirement to establish office of contingency 
        contracting.--The Administrator of the United States Agency for 
        International Development shall establish an Office of 
        Contingency Contracting in the Agency. The Office of 
        Contingency Contracting shall be headed by the Assistant 
        Administrator for Contingency Contracting and shall be 
        responsible for planning, funding, staffing, and managing 
        contingency contracting in the Agency.
            (3) Definition.--In this subsection, the term ``contingency 
        contracting'' means all stages of the process of acquiring 
        property or services by the United States Agency for 
        International Development during an overseas contingency 
        operation.

SEC. 108. INSPECTOR GENERAL REVIEWS AND EVALUATIONS.

    (a) Annual Review and Evaluation.--Not later than 30 days after the 
date of the enactment of this Act, the Inspector General of the 
Department of Defense, the Department of State, and the United States 
Agency for International Development shall each review and evaluate 
noncompetitive contracts and one-offer contracts in the Department of 
Defense, the Department of State, and the United States Agency for 
International Development, respectively.
    (b) Annual Report.--Not later than one year after the date of the 
enactment of this Act, and each year thereafter, each Inspector General 
referred to in subsection (a) shall prepare a report on the following:
            (1) The number of noncompetitive contracts awarded by the 
        Department of Defense, the Department of State, or the United 
        States Agency for International Development, as applicable, in 
        the previous year.
            (2) The number of one-offer contracts awarded by such 
        department or agency, as applicable, in the previous year.
            (3) The justification and approvals required under section 
        3304 of title 41, United States Code, or section 2304(f) of 
        title 10, United States Code, as applicable, and associated 
        regulations for each noncompetitive and one-offer contracted 
        listed under paragraphs (1) and (2).
            (4) An assessment of whether the contracting practices of 
        the Department of Defense, the Department of State, or the 
        United States Agency for International Development, as 
        applicable, are in keeping with the purposes and goals of 
        promoting and providing for full and open competition in 
        soliciting offers and awarding contracts over the simplified 
        acquisition threshold.
    (c) Submission of Report.--Each Inspector General referred to in 
subsection (a) shall submit the report required by subsection (b) to 
the appropriate committees of Congress and, in addition, to the head of 
the applicable department or agency.
    (d) Definitions.--In this section:
            (1) Noncompetitive contract.--The term ``noncompetitive 
        contract'' means a contract that is awarded without soliciting 
        bids from more than one vendor.
            (2) One-offer contracts.--The term ``one-offer contract'' 
        means a contract awarded after receiving a bid from only one 
        qualified vendor.

SEC. 109. TAX TREATMENT OF CERTAIN CIVILIAN EMPLOYEES OF DEPARTMENT OF 
              DEFENSE IN COMBAT ZONES.

    (a) Exclusion of Combat Zone Compensation.--
            (1) In general.--Subsection (d) of section 112 of the 
        Internal Revenue Code of 1986 (relating to prisoners of war, 
        etc.) is amended by adding at the end the following new 
        paragraph:
            ``(4) Civilian contracting employees of department of 
        defense.--
                    ``(A) Service in combat zone.--Gross income does 
                not include so much of compensation as does not exceed 
                the maximum enlisted amount received for active service 
                as a civilian employee of the Department of Defense 
                serving in the acquisition workforce (as defined in 
                section 1705(g) of title 10, United States Code) in 
                support of the Armed Forces of the United States for 
                any month during any part of which such employee--
                            ``(i) served in a combat zone,
                            ``(ii) was hospitalized as a result of 
                        wounds, disease, or injury incurred while 
                        serving in a combat zone, or
                            ``(iii) is in a missing status as a result 
                        of such service.
                Clause (ii) shall not apply for any month beginning 
                more than 2 years after the date of the termination of 
                combatant activities in such zone.
                    ``(B) Missing status.--For purposes of this 
                paragraph, the terms `active service' and `missing 
                status' have the respective meanings given to such 
                terms by section 5561 of title 5 of the United States 
                Code.''.
            (2) Clerical amendments.--
                    (A) The heading for section 112 of such Code is 
                amended to read as follows:

``SEC. 112. CERTAIN COMBAT ZONE COMPENSATION.''.

                    (B) The item relating to section 112 in the table 
                of sections for part III of subchapter B of chapter 1 
                of such Code is amended to read as follows:

``Sec. 112. Certain combat zone compensation.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to compensation for periods after the date of the 
        enactment of this Act.
    (b) Additional Estate Tax Not To Apply.--
            (1) In general.--Subsection (b) of section 2201 of such 
        Code is amended by inserting ``or while in service as a 
        civilian employee of the Department of Defense in the 
        acquisition workforce (as defined in section 1705(g) of title 
        10, United States Code) in support of the Armed Forces of the 
        United States,'' after ``United States,''.
            (2) Clerical amendments.--
                    (A) The heading for section 2201 of such Code is 
                amended by inserting ``and certain department of 
                defense civilians'' after ``members of the armed 
                forces''.
                    (B) The item relating to section 2201 in the table 
                of sections for subchapter C of chapter 11 of such Code 
                is amended to read as follows:

``Sec. 2201. Members of the Armed Forces and certain Department of 
                            Defense civilians dying in combat zone or 
                            by reason of combat-zone-incurred wounds, 
                            etc.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to decedents dying after the date of the enactment 
        of this Act.
    (c) No Tax on Toll Telephone Service in Combat Zone.--
            (1) In general.--Subsection (d) of section 4253 of such 
        Code (relating to servicemen in combat zone) is amended by 
        inserting ``, or from a civilian employee of the Department of 
        Defense serving in the acquisition workforce (as defined in 
        section 1705(g) of title 10, United States Code) in support of 
        the Armed Forces of the United States,'' after ``United 
        States''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to amounts paid after the date of the 
        enactment of this Act for services rendered on or after such 
        date.

 TITLE II--MATTERS RELATING TO SECURITY ASSISTANCE AND COUNTERTERRORISM

SEC. 201. REPORT ON UNITED STATES STRATEGY RELATING TO AFGHANISTAN.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense, in consultation with 
the Director of National Intelligence, the Secretary of State, the 
Secretary of the Treasury (acting through the head of the Office of 
Foreign Assets Control), the Attorney General, and any other officials 
the Secretary of Defense considers appropriate, shall submit to the 
appropriate congressional committees, the congressional intelligence 
committees, and the Director of the National Security Council a report 
on the success of the United States mission in Afghanistan, including 
the success of the strategy in Afghanistan in achieving the United 
States global counterterrorism goals and the success of the strategy of 
relying on the international donor community to provide development 
assistance and other related assistance to Afghanistan.
    (b) Form of Submission.--The report required under subsection (a) 
shall be submitted in an unclassified form, but may include a 
classified annex.
    (c) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning 
        provided by section 3 and also includes the following:
                    (A) The Committee on the Budget; the Committee on 
                Banking, Housing, and Urban Affairs; and the Committee 
                on the Judiciary of the Senate.
                    (B) The Committee on the Budget; the Committee on 
                Financial Services; and the Committee on the Judiciary 
                of the House of Representatives.
            (2) Congressional intelligence committees.--The term 
        ``congressional intelligence committees'' means--
                    (A) the Select Committee on Intelligence of the 
                Senate; and
                    (B) the Permanent Select Committee on Intelligence 
                of the House of Representatives.

SEC. 202. IMPROVING UNITED STATES FOREIGN POLICE ASSISTANCE ACTIVITIES.

    (a) Final Report.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the President shall submit to the 
        relevant congressional committees the final report from the 
        National Security Council's Interagency Policy Committee on 
        Security Sector Assistance.
            (2) Additional matters.--The report shall include 
        associated recommendations on--
                    (A) the roles and responsibilities of Federal 
                departments and agencies responsible for security 
                sector assistance; and
                    (B) United States Government policy guidance on 
                security sector assistance.
    (b) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the Secretaries of Defense and State shall jointly submit 
to the relevant congressional committees a plan to institute mechanisms 
to better coordinate, document, disseminate, and share information 
analysis and assessments regarding United States foreign police 
assistance activities with, by, and between each Federal department and 
agency responsible for foreign police assistance activities, the 
international community, and partner countries in the region.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``relevant congressional committees'' means the appropriate 
committees of Congress other than the Committees on Appropriations.

SEC. 203. UNITED STATES PLAN FOR SUSTAINING THE AFGHANISTAN NATIONAL 
              SECURITY FORCES.

    (a) Plan Required.--Section 1231(a) of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat. 
390) is amended--
            (1) by striking ``fiscal year 2010'' and inserting ``fiscal 
        year 2013''; and
            (2) by adding at the end the following new sentence: ``The 
        report shall include metrics that evaluate the value and 
        utility of ANSF development activities at the program level and 
        that ties such activities to long-term strategic objectives.''.
    (b) Appropriate Congressional Committees Defined.--Section 1231(d) 
of the National Defense Authorization Act for Fiscal Year 2008 (Public 
Law 110-181; 122 Stat. 390) is amended--
            (1) in paragraph (1), by inserting ``the Committee on 
        Oversight and Government Reform,'' after ``Appropriations,''; 
        and
            (2) in paragraph (2), by inserting ``the Committee on 
        Homeland Security and Governmental Affairs,'' after 
        ``Appropriations,''.
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