[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1597 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1597

To reform the acquisition system of the Department of Defense, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2015

Mr. Thornberry (for himself and Mr. Smith of Washington) introduced the 
following bill; which was referred to the Committee on Armed Services, 
 and in addition to the Committees on Small Business, Science, Space, 
and Technology, and Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To reform the acquisition system of the Department of Defense, 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 ``Agile Acquisition to Retain 
Technological Edge Act''.

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. Sense of Congress on the desired tenets of the defense 
                            acquisition system.
           TITLE I--WORKFORCE DEVELOPMENT AND RELATED MATTERS

Sec. 101. Amendments to Department of Defense Acquisition Workforce 
                            Development Fund.
Sec. 102. Dual-track military professionals in operational and 
                            acquisition specialities.
Sec. 103. Provision of joint duty assignment credit for acquisition 
                            duty.
Sec. 104. Requirement for acquisition skills assessment biennial 
                            strategic workforce plan.
Sec. 105. Mandatory requirement for training related to the conduct of 
                            market research.
Sec. 106. Independent study of implementation of defense acquisition 
                            workforce improvement efforts.
        TITLE II--WEAPON SYSTEMS ACQUISITION AND RELATED MATTERS

Sec. 201. Sense of Congress on the desired characteristics for the 
                            weapon systems acquisition system.
Sec. 202. Revision to duties of the Deputy Assistant Secretary of 
                            Defense for Developmental Test and 
                            Evaluation and the Deputy Assistant 
                            Secretary of Defense for Systems 
                            Engineering.
Sec. 203. Acquisition strategy required for each major defense 
                            acquisition program and major system.
Sec. 204. Revision to requirements relating to risk management in 
                            development of major defense acquisition 
                            programs and major systems.
Sec. 205. Modification to requirements relating to determination of 
                            contract type for major defense acquisition 
                            programs and major systems.
Sec. 206. Required determination before Milestone A approval or 
                            initiation of major defense acquisition 
                            programs.
Sec. 207. Required certification and determination before Milestone B 
                            approval of major defense acquisition 
                            programs.
          TITLE III--SERVICES CONTRACTING AND RELATED MATTERS

Sec. 301. Examination and guidance relating to oversight and approval 
                            of services contracts.
   TITLE IV--INFORMATION TECHNOLOGY ACQUISITIONS AND RELATED MATTERS

Sec. 401. Streamlining of requirements relating to defense business 
                            systems.
                    TITLE V--INDUSTRIAL BASE MATTERS

Sec. 501. Codification and amendment of Mentor-Protege Program.
Sec. 502. Amendments to data quality improvement plan.
Sec. 503. Notice of contract consolidation for acquisition strategies.
Sec. 504. Clarification of requirements related to small business 
                            contracts for services.
Sec. 505. Review of Government access to intellectual property rights 
                            of private sector firms.
Sec. 506. Modifications to the Small Business Innovative Research 
                            Program and the Small Business Technology 
                            Transfer Program.
Sec. 507. Extension of defense research and development rapid 
                            innovation program.
         TITLE VI--REPEAL OR REVISION OF REPORTING REQUIREMENTS

Sec. 601. Repeal of certain reporting requirements.
   TITLE VII--PLANNING, BUDGETING, CONTRACTING, OVERSIGHT, AND OTHER 
                            RELATED MATTERS

Sec. 701. Additional responsibility for Director of Operational Test 
                            and Evaluation.
Sec. 702. Report on linking and streamlining requirements, acquisition, 
                            and budget processes within Armed Forces.
Sec. 703. Required review of acquisition-related functions of the 
                            Chiefs of Staff of the Armed Forces.
Sec. 704. FAR Council membership for Administrator of Small Business 
                            Administration.
Sec. 705. Independent study of matters related to bid protests.
Sec. 706. Procurement of commercial items.
Sec. 707. Amendment relating to multiyear contract authority for 
                            acquisition of property.
Sec. 708. Use of recent prices paid by the Government in the 
                            determination of price reasonableness.
Sec. 709. Codification of other transaction authority for certain 
                            prototype projects.
Sec. 710. Amendments to certain acquisition thresholds.
Sec. 711. Revision of method of rounding when making inflation 
                            adjustment of acquisition-related dollar 
                            thresholds.
Sec. 712. Repeal of requirement for stand-alone manpower estimates for 
                            major defense acquisition programs.

SEC. 3. SENSE OF CONGRESS ON THE DESIRED TENETS OF THE DEFENSE 
              ACQUISITION SYSTEM.

    (a) Findings.--Congress finds the following:
            (1) The Committee on Armed Services of the House of 
        Representatives held a series of hearings in 2013, 2014, and 
        2015 gathering testimony from key acquisition leaders and 
        experts. It is clear that the acquisition reform efforts of the 
        last 50 years continue to founder because they fail to address 
        the motivational and environmental factors in which they must 
        be implemented. The acquisition system, though frustrating to 
        all, is in one sense in equilibrium. The acquisition system 
        provides enough benefits to proponents and opponents to 
        continue, with only minor changes, despite its shortcomings.
            (2) The Department of Defense still has too many defense 
        acquisitions and services chasing too few dollars. 
        Consequently, there remains a vast difference between the 
        budgeting plans of the Department and the reality of the cost 
        of its systems or the services it acquires. To keep programs 
        alive, the Department develops and Congress accepts fragile 
        acquisition strategies that downplay technical issues and 
        assume only successful outcomes from high-risk efforts. As a 
        result, the Department often ends up with too few weapons, with 
        performance that falls short, that are difficult and costly to 
        maintain, delivered late at too high a cost. We have limited 
        insight into the services acquired or what services need to be 
        acquired in the future. Furthermore, the conventional 
        acquisition process is not agile enough for today's demands. 
        Finally, the Department of Defense continues to struggle with 
        financial management and auditability, affecting its ability to 
        control costs, ensure basic accountability, anticipate future 
        costs and claims on the budget, and measure performance.
            (3) Too often today, all stakeholders in the Department of 
        Defense, Congress, and industry, accept that--
                    (A) for the acquisition process, success is defined 
                as maximizing technical performance or protecting 
                organizational interests, without regard to funding 
                disruptions and delivery delays of needed capability or 
                services to the warfighter; and
                    (B) the acquisition process is--
                            (i) reactive, meaning issues are addressed 
                        late and at great cost only after problems are 
                        realized;
                            (ii) plodding, meaning the bureaucratic 
                        processes are sclerotic and cumbersome;
                            (iii) opaque, meaning that limiting 
                        information is necessary to protect programs; 
                        and
                            (iv) traditional, meaning that customary 
                        approaches and suppliers are preferred over 
                        perceived risk of new or unique concepts and 
                        vendors.
            (4) Today, the United States is at a cross-roads, and if 
        changes to the acquisition system are not made soon, the trend 
        of fewer and more costly systems and services that fall short 
        of the needs of the Armed Forces will continue. Congress, the 
        Department of Defense, contractors, and the American people all 
        have a stake in making positive changes. Each plays a role in 
        contributing to the current system. Each gains benefits from 
        that system, but each is frustrated by it as well.
            (5) The acquisition improvement effort of the Committee on 
        Armed Services of the House of Representatives proposes a 
        different approach from previous efforts by seeking to improve 
        the environment (i.e., statutes, regulations, processes, and 
        culture) driving acquisition decisions in the Department of 
        Defense, industry, and Congress. The Committee has solicited 
        input from industry and the Department of Defense, as well as 
        others in Congress, and will continue to do so. The Committee 
        recognizes that there are no ``silver bullets'' that can 
        immediately fix the current acquisition system in a holistic 
        and long-standing manner. Therefore, the reform effort will be 
        an ongoing and iterative process that will result in 
        legislation not only this year, but will be embedded in the 
        Committee's annual and regular work.
    (b) Sense of Congress on the Tenets of an Improved Acquisition 
System.--It is the sense of Congress that all stakeholders in the 
acquisition system--the Department of Defense, Congress, and industry--
should be governed by the following tenets:
            (1) Success.--Success in the acquisition system means the 
        timely delivering of affordable and effective military 
        equipment and services.
            (2) Proactive.--The acquisition system should be proactive, 
        meaning--
                    (A) the system should recognize that development 
                and acquisition problems can occur; and
                    (B) officials at all levels should be empowered to 
                solve problems and reduce risks by surfacing issues 
                early and honestly and taking action to resolve them.
            (3) Agile.--The acquisition system should be agile, meaning 
        that needed program adjustments should be proposed and 
        adjudicated quickly.
            (4) Transparent.--The acquisition system should be 
        transparent, meaning that--
                    (A) all decisionmakers should be given useful, 
                relevant, credible, and reliable information when 
                making commitments;
                    (B) Government and industry communication should be 
                clear and open; and
                    (C) the Department of Defense should produce 
                auditable financial management statements.
            (5) Innovative.--The acquisition system should be 
        innovative, meaning that barriers should be removed that 
        preclude companies from undertaking defense business or 
        officials from proposing new approaches.

           TITLE I--WORKFORCE DEVELOPMENT AND RELATED MATTERS

SEC. 101. AMENDMENTS TO DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE 
              DEVELOPMENT FUND.

    (a) Permanent Extension of Fund.--Section 1705(d)(2) of title 10, 
United States Code, is amended--
            (1) in subparagraph (C), by striking ``of an amount as 
        follows:'' and all that follows through the end, and inserting 
        ``of an amount of not less than $500,000,000.''; and
            (2) in subparagraph (D), by striking ``an amount that is 
        less than'' and all that follows through the end, and inserting 
        ``an amount that is less than $400,000,000''.
    (b) Permanent Extension of Expedited Hiring Authority.--Section 
1705(g) of such title is amended--
            (1) by striking paragraph (2);
            (2) by striking ``Authority.--'' and all that follows 
        through ``For purposes of'' in paragraph (1) and inserting 
        ``Authority.--For purposes of'';
            (3) by striking ``(A)'' and inserting ``(1)''; and
            (4) by striking ``(B)'' and inserting ``(2)''.
    (c) Clarification of Acquisition Workforce Covered.--Section 
1705(g) of such title, as amended by subsection (c), is further amended 
by striking ``acquisition workforce positions'' and inserting ``of 
positions in the acquisition workforce, as defined in subsection 
(h),''.

SEC. 102. DUAL-TRACK MILITARY PROFESSIONALS IN OPERATIONAL AND 
              ACQUISITION SPECIALITIES.

    (a) Requirement for Service Chief Involvement.--Section 1722a(a) of 
title 10, United States Code, is amended by inserting after ``military 
department)'' the following: ``, in collaboration with 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 (with respect to 
the Army, Navy, Air Force, and Marine Corps, respectively),''.
    (b) Dual-Track Career Path.--Section 1722a(b) of such title is 
amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (2) in paragraph (1), by inserting ``single-track'' before 
        ``career path''; and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) A dual-track career path that attracts the highest 
        quality officers and enlisted personnel and allows them to gain 
        experience in and receive credit for a primary career in combat 
        arms and a functional secondary career in the acquisition field 
        in order to more closely align the military operational, 
        requirements, and acquisition workforces of each armed 
        force.''.

SEC. 103. PROVISION OF JOINT DUTY ASSIGNMENT CREDIT FOR ACQUISITION 
              DUTY.

    Section 668(a)(1) of title 10, United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(F) acquisition matters addressed by military personnel 
        and covered under chapter 87 of this title.''.

SEC. 104. REQUIREMENT FOR ACQUISITION SKILLS ASSESSMENT BIENNIAL 
              STRATEGIC WORKFORCE PLAN.

    (a) Requirement.--Section 115b(b)(1) of title 10, United States 
Code, is amended--
            (1) by redesignating subparagraph (D) as subparagraph (E);
            (2) in subparagraph (C), by striking ``and'' at the end; 
        and
            (3) by inserting after subparagraph (C) the following:
                    ``(D) new or expanded critical skills and 
                competencies needed by the existing civilian employee 
                workforce of the Department to address new acquisition 
                process requirements established by law or policy 
                during the four years preceding the year of submission 
                of the plan; and''.
    (b) Conforming Amendments.--Section 115b of such title is further 
amended--
            (1) in subparagraph (E) of subsection (b)(1), as 
        redesignated by subsection (a)(1), by striking ``(C)'' and 
        inserting ``(D)'';
            (2) in paragraph (2) of subsection (b), in the matter 
        preceding subparagraph (A), by striking ``(1)(D)'' and 
        inserting ``(1)(E)''; and
            (3) in paragraph (2)(A) of each of subsections (c), (d), 
        and (e), by striking ``through (D)'' and inserting ``through 
        (E)''.

SEC. 105. MANDATORY REQUIREMENT FOR TRAINING RELATED TO THE CONDUCT OF 
              MARKET RESEARCH.

    (a) Mandatory Market Research Training.--Section 2377 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Market Research Training Required.--The Secretary of Defense 
shall provide mandatory training for members of the armed forces and 
employees of the Department of Defense responsible for the conduct of 
market research required under subsection (c). Such mandatory training 
shall, at a minimum--
            ``(1) provide comprehensive information on the subject of 
        market research and the function of market research in the 
        acquisition of commercial items;
            ``(2) teach best practices for conducting and documenting 
        market research; and
            ``(3) provide methodologies for establishing standard 
        processes and reports for collecting and sharing market 
        research across the Department.''.
    (b) Incorporation Into Management Certification Training Mandate.--
The Chairman of the Joint Chiefs of Staff shall ensure that the 
requirements of section 2377(d) of title 10, United States Code, as 
added by subsection (a), are incorporated into the requirements 
management certification training mandate of the Joint Capabilities 
Integration Development System.

SEC. 106. INDEPENDENT STUDY OF IMPLEMENTATION OF DEFENSE ACQUISITION 
              WORKFORCE IMPROVEMENT EFFORTS.

    (a) Requirement for Study.--Not later than 30 days after the date 
of the enactment of this Act, the Secretary of Defense shall enter into 
a contract with an independent research entity described in subsection 
(b) to carry out a comprehensive study of the strategic planning of the 
Department of Defense related to the defense acquisition workforce. The 
study shall provide a comprehensive examination of the Department's 
efforts to recruit, develop, and retain the acquisition workforce with 
a specific review of the following:
            (1) The implementation of the Defense Acquisition Workforce 
        Improvement Act (including chapter 87 of title 10, United 
        States Code).
            (2) The application of the Department of Defense 
        Acquisition Workforce Development Fund (as established under 
        section 1705 of title 10, United States Code).
            (3) The effectiveness of professional military education 
        programs, including fellowships and exchanges with industry.
    (b) Independent Research Entity.--The entity described in this 
subsection is an independent research entity that is a not-for-profit 
entity or a federally funded research and development center with 
appropriate expertise and analytical capability.
    (c) Reports.--
            (1) To secretary.--Not later than one year after the date 
        of the enactment of this Act, the independent research entity 
        shall provide to the Secretary a report containing--
                    (A) the results of the study required by subsection 
                (a); and
                    (B) such recommendations to improve the acquisition 
                workforce as the independent research entity considers 
                to be appropriate.
            (2) To congress.--Not later than 30 days after receipt of 
        the report under paragraph (1), the Secretary of Defense shall 
        submit such report, together with any additional views or 
        recommendations of the Secretary, to the congressional defense 
        committees.

        TITLE II--WEAPON SYSTEMS ACQUISITION AND RELATED MATTERS

SEC. 201. SENSE OF CONGRESS ON THE DESIRED CHARACTERISTICS FOR THE 
              WEAPON SYSTEMS ACQUISITION SYSTEM.

    (a) Findings.--Congress makes the following findings:
            (1) Current situation.--Despite significant and repeated 
        attempts at acquisition reform, the Department of Defense still 
        experiences case after case of expensive weapon system 
        acquisition failures. The Department of Defense has a track 
        record of too many cancellations, schedule slippages, cost 
        over-runs, and failures to deliver timely solutions to the 
        requirements of the Armed Forces. This situation is 
        unacceptable. For example, according to the Final Report of the 
        2010 Army Acquisition Review, between 1996 and 2010, the Army 
        expended approximately $1 billion to $3 billion annually on two 
        dozen programs that were eventually cancelled. No military 
        service and no type of weapon acquisition has been immune.
            (2) Problems in all phases of acquisitions.--
                    (A) Despite detailed weapon acquisition processes 
                and procedures, there is only limited discipline in 
                starting programs. Many programs begin without a solid 
                foundation. They have too many requirements deemed 
                ``critical'', which are driven by too many 
                organizations and individuals. Approved requirements 
                are often set with only a limited understanding of the 
                technical feasibility of achieving them. The resulting 
                compromises of good program management and engineering 
                judgment that allow the programs to proceed are the 
                ``spackle'' of the acquisition system that covers up 
                the risks and enables the system to operate.
                    (B) As these weapon systems proceed into 
                engineering and manufacturing development, they often 
                encounter development problems leading to cost growth, 
                schedule delay, and performance reductions. Industry 
                and Government officials frequently respond by taking 
                additional development risks to resolve basic 
                performance issues by reducing the time to analyze and 
                assess development results, overlapping key development 
                efforts, and reducing testing. The Department of 
                Defense and Congress disrupt the planned funding of 
                stable programs to find resources for troubled programs 
                or to fund across-the-board spending cuts. Funding 
                instability is the inevitable price that programs pay 
                for survival because funding disruptions actually keep 
                more programs alive.
                    (C) Finally, these weapons are often rushed into 
                production only to encounter production problems, and 
                are fielded with many unknowns or deficiencies leading 
                to significantly reduced quantities and force structure 
                reductions. The warfighter faces the challenge of 
                operating weapons with poor reliability, high 
                maintenance demands, reduced performance, and many 
                capability shortfalls.
    (b) Sense of Congress.--
            (1) In general.--It is the sense of Congress that, in 
        accordance with the tenets described in section 3, to improve 
        weapon system acquisitions, the Department of Defense, 
        Congress, and industry should develop an acquisition system 
        characterized by highly disciplined program initiation coupled 
        with agile program execution and balanced oversight, as 
        described in paragraphs (2), (3), and (4).
            (2) Highly disciplined program initiation.--An acquisition 
        system characterized by highly disciplined program initiation 
        means that programs do not begin engineering development until 
        firm requirements are matched to a flexible acquisition 
        strategy structured to develop militarily useful capability 
        that can be delivered in a relevant period of time with 
        available technologies, funding, and management capacity. Such 
        a highly disciplined program initiation includes--
                    (A) a workforce with smart requirements setters and 
                expert buyers, with the knowledge, skills, and 
                experience to successfully plan for and execute highly 
                complex acquisitions;
                    (B) requirements that are well-defined, technically 
                feasible, and affordable;
                    (C) acquisition strategies that are designed to 
                minimize time to market of militarily useful 
                capability, with the program concerned being structured 
                so that--
                            (i) lower-risk, technically mature 
                        capabilities are matched to delivering 
                        capability to the warfighter in the near term, 
                        while remaining requirements are aligned and 
                        resources are programmed to support integration 
                        into later increments to meet the requirements 
                        of the Armed Forces;
                            (ii) capabilities are approved for an 
                        increment only when their developmental risks 
                        have been appropriately reduced; and
                            (iii) increments are planned to complete 
                        engineering and manufacturing development in a 
                        reasonable period of time;
                    (D) a science and technology development enterprise 
                that is responsive to the acquisition process before 
                engineering and manufacturing development begins, and 
                sufficiently resourced to reduce risks and enable 
                programs to make smart decisions without losing 
                critical funds; and
                    (E) redtape reduction in order to free up program 
                and Department officials to focus on their mission of 
                defining an executable program and understanding and 
                addressing risks.
            (3) Agile program execution.--An acquisition system 
        characterized by agile program execution means a system in 
        which acquisition speed and flexibility to make trade-offs are 
        balanced with the need to achieve desired technical 
        performance. Such agile program execution includes--
                    (A) program managers and program officials who are 
                expert buyers and negotiators who anticipate problems, 
                negotiate solutions, and are empowered to manage;
                    (B) a preference for fixed price development, with 
                program initiation laying the foundation in which fixed 
                price contracting is the appropriate contract type for 
                product development;
                    (C) program managers who avoid increasing program 
                risk by resisting the addition of new requirements or 
                the reduction of developmental activities;
                    (D) empowering program managers and senior 
                decisionmakers to make decisions easily in order to 
                move forward with capabilities that mature quickly, 
                cancel those that encounter greater difficulties than 
                expected, and trade-off or reduce requirements to 
                maintain cost and schedule;
                    (E) enabling program managers to focus on 
                overcoming execution challenges and delivering success 
                rather than concentrating on compliance with reporting, 
                certifications, and other redtape; and
                    (F) senior decisionmakers who have knowledge of 
                demonstrated performance as programs proceed through 
                development, with robust developmental testing 
                occurring before committing to production for 
                operational use as a basis for decisionmaking.
            (4) Balanced oversight.--An acquisition system 
        characterized by balanced oversight means that the focus is on 
        ensuring discipline initiating programs and that appropriate 
        adjustments are made during development, so that programs have 
        the best chance to succeed. Such balanced oversight includes--
                    (A) involvement by decisionmakers early to ensure 
                that an understanding of trade-offs, risks, and needs 
                are considered, resourced, and validated, and that 
                agreement is reached between the executive and 
                legislative branches;
                    (B) acceptance by decisionmakers that complex 
                weapon system developments are inherently risky and 
                require expertise and flexibility to manage 
                effectively;
                    (C) conscious decisions by decisionmakers regarding 
                where to accept risk, while ensuring that risk 
                mitigation plans are resourced (with time, funding, 
                alternatives, and competent government and contractor 
                officials);
                    (D) measuring and monitoring by decisionmakers of 
                the right factors, such as technology maturation 
                progress and systems engineering during risk reduction, 
                development cost growth during engineering and 
                manufacturing development, and reliability growth 
                during system demonstration;
                    (E) work by Congress and the Department of Defense, 
                once a program has begun, to resolve issues by 
                considering trade-offs among cost, schedule, and 
                performance necessary to best support the warfighter; 
                and
                    (F) congressional understanding of risks and 
                efforts to mitigate such risks even if they are through 
                non-traditional means or other technological advances.

SEC. 202. REVISION TO DUTIES OF THE DEPUTY ASSISTANT SECRETARY OF 
              DEFENSE FOR DEVELOPMENTAL TEST AND EVALUATION AND THE 
              DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR SYSTEMS 
              ENGINEERING.

    Section 139b of title 10, United States Code, is amended--
            (1) in subsection (a)(5)--
                    (A) in subparagraph (B), by striking ``review and 
                approve or disapprove'' and inserting ``advise in 
                writing the milestone decision authority regarding 
                review and approval of''; and
                    (B) in subparagraph (C), by inserting ``in order to 
                advise relevant technical authorities for such programs 
                on the incorporation of best practices for 
                developmental test from across the Department'' after 
                ``programs''; and
            (2) in subsection (b)(5)--
                    (A) in subparagraph (B), by striking ``review and 
                approve'' and inserting ``advise in writing the 
                milestone decision authority regarding review and 
                approval of''; and
                    (B) in subparagraph (C), by inserting ``in order to 
                advise relevant technical authorities for such programs 
                on the incorporation of best practices for systems 
                engineering from across the Department'' after 
                ``programs''.

SEC. 203. ACQUISITION STRATEGY REQUIRED FOR EACH MAJOR DEFENSE 
              ACQUISITION PROGRAM AND MAJOR SYSTEM.

    (a) Consolidation of Requirements Relating to Acquisition 
Strategy.--
            (1) New title 10 section.--Chapter 144 of title 10, United 
        States Code, is amended by inserting after section 2431 the 
        following new section:
``Sec. 2431a. Acquisition strategy
    ``(a) Acquisition Strategy Required.--There shall be an acquisition 
strategy for each major defense acquisition program and each major 
system approved by a Milestone Decision Authority.
    ``(b) Responsible Official.--For each acquisition strategy required 
by subsection (a), the Under Secretary of Defense for Acquisition, 
Technology, and Logistics is responsible for issuing and maintaining 
the requirements for--
            ``(1) the content of the strategy; and
            ``(2) the review and approval process for the strategy.
    ``(c) Considerations.--(1) In issuing requirements for the content 
of an acquisition strategy for a major defense acquisition program or 
major system, the Under Secretary shall ensure that--
            ``(A) the strategy clearly describes the proposed business 
        and technical management approach for the program or system, in 
        sufficient detail to allow the Milestone Decision Authority to 
        assess the viability of the proposed approach;
            ``(B) the strategy contains a clear explanation of how the 
        strategy is designed to be implemented with available 
        resources, such as time, funding, and management capacity; and
            ``(C) the strategy considers the items listed in paragraph 
        (2).
    ``(2) Each strategy shall, at a minimum, consider the following:
            ``(A) An approach that delivers required capability in 
        increments, each depending on available mature technology, and 
        that recognizes up front the need for future capability 
        improvements.
            ``(B) Acquisition approach, including industrial base 
        considerations in accordance with section 2440 of this title.
            ``(C) Risk management, including such methods as 
        competitive prototyping at the system, subsystem, or component 
        level, in accordance with section 2431b of this title.
            ``(D) Business strategy, including measures to ensure 
        competition at the system and subsystem level throughout the 
        life-cycle of the program or system in accordance with section 
        2337 of this title.
            ``(E) Contracting strategy, including--
                    ``(i) contract type and how the type selected 
                relates to level of program risk in each acquisition 
                phase;
                    ``(ii) how the plans for the program or system to 
                reduce risk enable the use of fixed-price elements in 
                subsequent contracts and the timing of the use of those 
                fixed price elements;
                    ``(iii) market research; and
                    ``(iv) consideration of small business 
                participation.
            ``(F) Intellectual property strategy in accordance with 
        section 2320 of this title.
            ``(G) International involvement, including foreign military 
        sales and cooperative opportunities, in accordance with section 
        2350a of this title.
            ``(H) Multi-year procurement in accordance with section 
        2306b of this title.
            ``(I) Integration of current intelligence assessments into 
        the acquisition process.
    ``(d) Review.--(1) Subject to the authority, direction, and control 
of the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, the Milestone Decision Authority shall review and approve, 
as appropriate, the acquisition strategy for a major defense 
acquisition program or major system at each of the following times:
                    ``(A) Milestone A approval.
                    ``(B) The decision to release the request for 
                proposals for development of the program or system.
                    ``(C) Milestone B approval.
                    ``(D) Each subsequent milestone.
                    ``(E) Review of any decision to enter into full-
                rate production.
                    ``(F) When there has been--
                            ``(i) a significant change to the cost of 
                        the program or system;
                            ``(ii) a critical change to the cost of the 
                        program or system;
                            ``(iii) a significant change to the 
                        schedule of the program or system; or
                            ``(iv) a significant change to the 
                        performance of the program or system.
                    ``(G) Any other time considered relevant by the 
                Milestone Decision Authority.
    ``(2) If the Milestone Decision Authority revises an acquisition 
strategy for a program or system, the Milestone Decision Authority 
shall provide notice of the revision to the congressional defense 
committees.
    ``(e) Definitions.--In this section:
            ``(1) The term `major defense acquisition program' has the 
        meaning provided in section 2430 of this title.
            ``(2) The term `major system' has the meaning provided in 
        section 2302(5) of this title.
            ``(3) The term `Milestone A approval' means a decision to 
        enter into technology maturation and risk reduction pursuant to 
        guidance prescribed by the Secretary of Defense for the 
        management of Department of Defense acquisition programs.
            ``(4) The term `Milestone B approval' has the meaning 
        provided in section 2366(e)(7) of this title.
            ``(5) The term `Milestone Decision Authority', with respect 
        to a major defense acquisition program or major system, means 
        the official within the Department of Defense designated with 
        the overall responsibility and authority for acquisition 
        decisions for the program or system, including authority to 
        approve entry of the program or system into the next phase of 
        the acquisition process.
            ``(6) The term `management capacity', with respect to a 
        major defense acquisition program or major system, means the 
        capacity to manage the program or system through the use of 
        highly qualified organizations and personnel with appropriate 
        experience, knowledge, and skills.
            ``(7) The term `significant change to the cost', with 
        respect to a major defense acquisition program or major system, 
        means a significant cost growth threshold, as that term is 
        defined in section 2433(a)(4) of this title.
            ``(8) The term `critical change to the cost', with respect 
        to a major defense acquisition program or major system, means a 
        critical cost growth threshold, as that term is defined in 
        section 2433(a)(5) of this title.
            ``(9) The term `significant change to the schedule', with 
        respect to a major defense acquisition program or major system, 
        means any schedule delay greater than six months in a reported 
        event.
    ``(f) Submission to Congressional Committees.--Upon request by the 
chairman or ranking member of the Committee on Armed Services of the 
Senate or the House of Representatives, the Secretary of Defense shall 
submit to the committee the most recently approved acquisition strategy 
for a major defense acquisition program or major system. The strategy 
shall be submitted in unclassified form but may include a classified 
annex.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2431 the following new item:

``2431a. Acquisition strategy.''.
    (b)  Additional Amendments.--
            (1) Section 2350a(e) of such title is amended--
                    (A) in the subsection heading, by striking 
                ``Document'';
                    (B) in paragraph (1), by striking ``the Under 
                Secretary of Defense for'' and all that follows through 
                ``of the Board'' and inserting ``opportunities for such 
                cooperative research and development shall be addressed 
                in the acquisition strategy for the project''; and
                    (C) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by striking ``document'' and 
                                inserting ``discussion''; and
                                    (II) by striking ``include'' and 
                                inserting ``consider'';
                            (ii) in subparagraph (A), by striking ``A 
                        statement indicating whether'' and inserting 
                        ``Whether'';
                            (iii) in subparagraph (B)--
                                    (I) by striking ``by the Under 
                                Secretary of Defense for Acquisition, 
                                Technology, and Logistics''; and
                                    (II) by striking ``of the United 
                                States under consideration by the 
                                Department of Defense''; and
                            (iv) in subparagraph (D), by striking ``The 
                        recommendation of the Under Secretary'' and 
                        inserting ``A recommendation to the Milestone 
                        Decision Authority''.
            (2) Section 803 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 
        U.S.C. 2430 note) is repealed.

SEC. 204. REVISION TO REQUIREMENTS RELATING TO RISK MANAGEMENT IN 
              DEVELOPMENT OF MAJOR DEFENSE ACQUISITION PROGRAMS AND 
              MAJOR SYSTEMS.

    (a) Risk Management and Mitigation Requirements.--
            (1) In general.--Chapter 144 of title 10, United States 
        Code, is amended by inserting after section 2431a (as added by 
        section 203) the following new section:
``Sec. 2431b. Risk management and mitigation in major defense 
              acquisition programs and major systems
    ``(a) Requirement.--(1) There shall be a risk management and 
mitigation strategy for each major defense acquisition program or major 
system.
    ``(2) The Secretary of Defense shall ensure that the initial 
acquisition strategy (required under section 2431a of this title) 
approved by the Milestone Decision Authority and any subsequent 
revisions include the following:
            ``(A) A comprehensive strategy for managing and mitigating 
        risk (including technical, cost, and schedule risk) during each 
        of the following periods:
                    ``(i) The period preceding engineering 
                manufacturing development, or its equivalent.
                    ``(ii) The period preceding initial production.
                    ``(iii) The period preceding full-rate production.
            ``(B) An identification of the major sources of risk in 
        each of the periods listed in subparagraph (A).
    ``(3) In the case of a program or system with separate increments 
of capabilities that require Milestone Decision Authority approval to 
begin or proceed, paragraphs (1) and (2) shall apply to each increment.
    ``(b) Strategy To Manage and Mitigate Risks.--(1) The comprehensive 
strategy to manage and mitigate risk included in the acquisition 
strategy for purposes of subsection (a)(2)(A) shall identify each 
individual risk and the risk management and mitigation activities to 
address each risk. For the mitigation activities identified, the 
strategy shall note whether they require cost and schedule margins and 
need to be included in funding requests.
    ``(2) The comprehensive strategy shall include the role and extent 
of the following:
            ``(A) Prototyping (including prototyping at the system, 
        subsystem, or component level and competitive prototyping, 
        where appropriate) and, if prototyping at either the system, 
        subsystem, or component level is not used, an explanation of 
        why it is not appropriate.
            ``(B) Modeling and simulation, the areas that modeling and 
        simulation will assess, and identification of the need for 
        development of any new modeling and simulation tools in order 
        to support the comprehensive strategy.
            ``(C) Technology demonstrations and decision points for 
        disciplined transition of planned technologies into programs or 
        the selection of alternative technologies.
            ``(D) Multiple design approaches.
            ``(E) Alternative designs, including any designs that meet 
        requirements but do so with reduced performance.
            ``(F) Phasing of program activities or related technology 
        development efforts in order to address high risk areas as 
        early as feasible.
    ``(c) Definitions.--In this section, the terms `major defense 
acquisition program' and `major system' have the meanings provided in 
section 2431a of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2431a, as so added, the following new 
        item:

``2431b. Risk management and mitigation in major defense acquisition 
                            programs and major systems.''.
    (b) Repeal of Superseded Provision.--Section 203 of the Weapon 
Systems Acquisition Reform Act of 2009 (10 U.S.C. 2430 note) is 
repealed.

SEC. 205. MODIFICATION TO REQUIREMENTS RELATING TO DETERMINATION OF 
              CONTRACT TYPE FOR MAJOR DEFENSE ACQUISITION PROGRAMS AND 
              MAJOR SYSTEMS.

    (a) Determination of Contract Type.--Section 2306 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(i) Required Elements of Guidance Relating to Contract Type.--(1) 
The Secretary of Defense shall ensure that the guidance of the 
Department of Defense relating to major defense acquisition programs, 
major systems, and major automated information systems includes a 
requirement that the acquisition strategy required under section 2431a 
of this title for such a program or system includes--
            ``(A) a separate identification of the contract type for 
        each acquisition phase of the program or system; and
            ``(B) a justification of the contract type identified.
    ``(2) The contract type identified in accordance with paragraph 
(1)(A) may be--
            ``(A) a fixed-price type contract (including a fixed-price 
        incentive contract); or
            ``(B) a cost-type contract (including a cost-plus-
        incentive-fee contract).
    ``(3) The guidance referred to in paragraph (1) shall require that 
the justification for the contract type selected explain--
            ``(A) how the level of program risk in each acquisition 
        phase relates to the contract type selected;
            ``(B) how the use of incentives (especially cost 
        incentives) in the contract, if any, supports the program or 
        system objectives during each acquisition phase; and
            ``(C) how the plans for the program or system to reduce 
        risk enable the use of fixed-price elements in subsequent 
        contracts.
    ``(4) The guidance shall also specify that the use of contracts 
with target costs, target profits or fees, and profit or fee adjustment 
formulas can be an appropriate contract type.''.
    (b) Repeal.--Section 818 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 U.S.C. 
2306 note) is amended by striking subsections (b), (c), (d), and (e).

SEC. 206. REQUIRED DETERMINATION BEFORE MILESTONE A APPROVAL OR 
              INITIATION OF MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Determination Rather Than Certification Required.--Subsection 
(a) of section 2366a of title 10, United States Code, is amended--
            (1) in the subsection heading, by striking 
        ``Certification'' and inserting ``Written Determination 
        Required''; and
            (2) in the matter preceding paragraph (1), by striking 
        ``certifies'' and inserting ``determines, in writing,''.
    (b) Submission of Written Determination to Congress.--Subsection 
(b) of such section is amended to read as follows:
    ``(b) Submission to Congress.--At the request of any of the 
congressional defense committees, the Secretary of Defense shall submit 
to the committee an explanation of the basis for a determination made 
under subsection (a) with respect to a major defense acquisition 
program, together with a copy of the written determination. The 
explanation shall be submitted in unclassified form, but may include a 
classified annex.''.
    (c) Repeal of Unused Definitions.--Subsection (c) of such section 
is amended--
            (1) by striking paragraphs (2) and (4); and
            (2) by redesignating paragraphs (3), (5), (6), and (7) as 
        paragraphs (2), (3), (4), and (5), respectively.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading of section 2366a of title 
        10, United States Code, is amended to read as follows:
``Sec. 2366a. Major defense acquisition programs: determination 
              required before Milestone A approval''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 139 of such title is amended by striking 
        the item relating to section 2366a and inserting the following 
        new item:

``2366a. Major defense acquisition programs: determination required 
                            before Milestone A approval.''.

SEC. 207. REQUIRED CERTIFICATION AND DETERMINATION BEFORE MILESTONE B 
              APPROVAL OF MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Determination Required in Addition to Certification.--
Subsection (a) of section 2366b of title 10, United States Code, is 
amended--
            (1) in the subsection heading, by striking 
        ``Certification'' and inserting ``Certification and 
        Determination Required'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by striking ``(3) further certifies that--'' and 
        inserting the following:
            ``(3) further certifies that the technology in the program 
        has been demonstrated in a relevant environment, as determined 
        by the Milestone Decision Authority on the basis of an 
        independent review and assessment by the Assistant Secretary of 
        Defense for Research and Engineering, in consultation with the 
        Deputy Assistant Secretary of Defense for Developmental Test 
        and Evaluation;
            ``(4) determines, in writing, that--''.
    (b) Submission of Written Determination to Congress.--Subsection 
(c) of such section is amended by adding at the end the following new 
paragraph:
    ``(3) At the request of any of the congressional defense 
committees, the Secretary of Defense shall submit to the committee an 
explanation of the basis for a determination made under subsection 
(a)(4) with respect to a major defense acquisition program, together 
with a copy of the written determination. The explanation shall be 
submitted in unclassified form, but may include a classified annex.''.
    (c) National Security Waiver.--Subsection (d) of such section is 
amended--
            (1) in paragraph (1), by striking ``certification 
        requirement'' and inserting ``certification and determination 
        requirements''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A) and in 
                subparagraph (A), by inserting ``waiver'' before 
                ``determination'' each place it appears; and
                    (B) in subparagraph (B), by striking 
                ``certification components'' both places it appears and 
                inserting ``certification and determination 
                components''.
    (d) Conforming Amendments.--Section 2366b of title 10, United 
States Code, is further amended--
            (1) in subsection (b)(1), by striking ``paragraph (1) or 
        (2) of subsection (a)'' and inserting ``paragraph (1), (2), or 
        (3) of subsection (a)'';
            (2) in subsection (d)(1), by striking ``paragraph (1), (2), 
        or (3) of subsection (a)'' and inserting ``paragraph (1), (2), 
        (3), or (4) of subsection (a)''; and
            (3) in subsection (d)(2)(B), by striking ``paragraphs (1), 
        (2), and (3) of subsection (a)'' and inserting ``paragraphs 
        (1), (2), (3), and (4) of subsection (a)''.
    (e) Clerical Amendments.--
            (1) Section heading.--The heading of section 2366b of title 
        10, United States Code, is amended to read as follows:
``Sec. 2366b. Major defense acquisition programs: certification and 
              determination required before Milestone B approval''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 139 of such title is amended by striking 
        the item relating to section 2366b and inserting the following 
        new item:

``2366b. Major defense acquisition programs: certification and 
                            determination required before Milestone B 
                            approval.''.

          TITLE III--SERVICES CONTRACTING AND RELATED MATTERS

SEC. 301. EXAMINATION AND GUIDANCE RELATING TO OVERSIGHT AND APPROVAL 
              OF SERVICES CONTRACTS.

    Not later than September 15, 2015, the Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall--
            (1) complete an examination of the decision authority 
        related to acquisition of services; and
            (2) develop and issue guidance to improve capabilities and 
        processes related to requirements development and source 
        selection for, and oversight and management of, services 
        contracts.

   TITLE IV--INFORMATION TECHNOLOGY ACQUISITIONS AND RELATED MATTERS

SEC. 401. STREAMLINING OF REQUIREMENTS RELATING TO DEFENSE BUSINESS 
              SYSTEMS.

    (a) In General.--
            (1) Revision.--Section 2222 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 2222. Defense business systems: business process reengineering; 
              enterprise architecture; management
    ``(a) Defense Business Systems Generally.--The Secretary of Defense 
shall ensure that each covered defense business system developed, 
deployed, and operated by the Department of Defense--
            ``(1) supports efficient business processes that have been 
        reviewed, and as appropriate revised, through business process 
        reengineering;
            ``(2) is integrated into a comprehensive defense business 
        enterprise architecture; and
            ``(3) is managed in a manner that provides visibility into, 
        and traceability of, expenditures for the system.
    ``(b) Issuance of Guidance.--
            ``(1) Secretary of defense guidance.--The Secretary shall 
        issue guidance to provide for the coordination of, and 
        decisionmaking for, the planning, programming, and control of 
        investments in covered defense business systems.
            ``(2) Supporting guidance.--The Secretary shall direct the 
        Deputy Chief Management Officer of the Department of Defense, 
        the Under Secretary of Defense for Acquisition, Technology, and 
        Logistics, the Chief Information Officer, and the Chief 
        Management Officer of each of the military departments to issue 
        and maintain supporting guidance, as appropriate, for the 
        guidance of the Secretary issued under paragraph (1).
    ``(c) Guidance Elements.--The guidance issued under subsection 
(b)(1) shall include the following elements:
            ``(1) Policy to ensure that the business processes of the 
        Department of Defense are continuously reviewed and revised--
                    ``(A) to implement the most streamlined and 
                efficient business processes practicable; and
                    ``(B) to enable the use of commercial off-the-shelf 
                business systems with the fewest changes necessary to 
                accommodate requirements and interfaces that are unique 
                to the Department of Defense.
            ``(2) A process to establish requirements for covered 
        defense business systems.
            ``(3) Mechanisms for the planning and control of 
        investments in covered defense business systems, including a 
        process for the collection and review of programming and 
        budgeting information for covered defense business systems.
            ``(4) Policy requiring the periodic review of covered 
        defense business systems that have been fully deployed, by 
        portfolio, to ensure that investments in such portfolios are 
        appropriate.
    ``(d) Defense Business Enterprise Architecture.--
            ``(1) Blueprint.--The Secretary, working through the Deputy 
        Chief Management Officer of the Department of Defense, shall 
        develop and maintain a blueprint to guide the development of 
        integrated business processes within the Department of Defense. 
        Such blueprint shall be known as the `defense business 
        enterprise architecture'.
            ``(2) Purpose.--The defense business enterprise 
        architecture shall be sufficiently defined to effectively guide 
        implementation of interoperable defense business system 
        solutions and shall be consistent with the policies and 
        procedures established by the Director of the Office of 
        Management and Budget.
            ``(3) Elements.--The defense business enterprise 
        architecture shall--
                    ``(A) include policies, procedures, business data 
                standards, business performance measures, and business 
                information requirements that apply uniformly 
                throughout the Department of Defense; and
                    ``(B) enable the Department of Defense to--
                            ``(i) comply with all applicable law, 
                        including Federal accounting, financial 
                        management, and reporting requirements;
                            ``(ii) routinely produce verifiable, 
                        timely, accurate, and reliable business and 
                        financial information for management purposes; 
                        and
                            ``(iii) integrate budget, accounting, and 
                        program information and systems.
            ``(4) Integration into information technology 
        architecture.--(A) The defense business enterprise architecture 
        shall be integrated into the information technology enterprise 
        architecture required under subparagraph (B).
            ``(B) The Chief Information Officer of the Department of 
        Defense shall develop an information technology enterprise 
        architecture. The architecture shall describe a plan for 
        improving the information technology and computing 
        infrastructure of the Department of Defense, including for each 
        of the major business processes conducted by the Department of 
        Defense.
    ``(e) Defense Business Council.--
            ``(1) Requirement for council.--The Secretary shall 
        establish a Defense Business Council to provide advice to the 
        Secretary on developing the defense business enterprise 
        architecture, reengineering the Department's business 
        processes, and requirements for defense business systems. The 
        Council shall be chaired by the Deputy Chief Management Officer 
        and the Chief Information Officer of the Department of Defense.
            ``(2) Membership.--The membership of the Council shall 
        include the following:
                    ``(A) The Chief Management Officers of the military 
                departments, or their designees.
                    ``(B) The following officials of the Department of 
                Defense, or their designees:
                            ``(i) The Under Secretary of Defense for 
                        Acquisition, Technology, and Logistics with 
                        respect to acquisition, logistics, and 
                        installations management processes.
                            ``(ii) The Under Secretary of Defense 
                        (Comptroller) with respect to financial 
                        management and planning and budgeting 
                        processes.
                            ``(iii) The Under Secretary of Defense for 
                        Personnel and Readiness with respect to human 
                        resources management processes.
    ``(f) Approvals Required for Development.--
            ``(1) Initial approval required.--The Secretary shall 
        ensure that a covered defense business system program cannot 
        proceed into development (or, if no development is required, 
        into production or fielding) unless the appropriate approval 
        official (as specified in paragraph (2)) approves the program 
        by determining that the covered defense business system 
        concerned--
                    ``(A) supports a business process that has been, or 
                is being as a result of the acquisition program, 
                reengineered to be as streamlined and efficient as 
                practicable consistent with the guidance issued 
                pursuant to subsection (b), including business process 
                mapping;
                    ``(B) is in compliance with the defense business 
                enterprise architecture developed pursuant to 
                subsection (d) or will be in compliance as a result of 
                modifications planned;
                    ``(C) has valid, achievable requirements; and
                    ``(D) is in compliance with the Department's 
                auditability requirements.
            ``(2) Appropriate official.--For purposes of paragraph (1), 
        the appropriate approval official with respect to a covered 
        defense business system is the following:
                    ``(A) In the case of a system of a military 
                department, the Chief Management Officer of that 
                military department.
                    ``(B) In the case of a system of a Defense Agency 
                or Defense Field Activity or a system that will support 
                the business process of more than one military 
                department or Defense Agency or Defense Field Activity, 
                the Deputy Chief Management Officer of the Department 
                of Defense.
                    ``(C) In the case of any system, such official 
                other than the applicable official under subparagraph 
                (A) or (B) as the Secretary designates for such 
                purpose.
            ``(3) Annual certification.--For any fiscal year in which 
        funds are expended for development pursuant to a covered 
        defense business system program, the Defense Business Council 
        shall review the system and certify (or decline to certify as 
        the case may be) that it continues to satisfy the requirements 
        of paragraph (1). If the Council determines that certification 
        cannot be granted, the chairman of the Council shall notify the 
        appropriate approval official and the acquisition Milestone 
        Decision Authority for the program and provide a recommendation 
        for corrective action.
            ``(4) Obligation of funds in violation of requirements.--
        The obligation of Department of Defense funds for a covered 
        defense business system program that has not been certified in 
        accordance with paragraph (3) is a violation of section 
        1341(a)(1)(A) of title 31.
    ``(g) Responsibility of Milestone Decision Authority.--The 
Secretary shall ensure that, as part of the defense acquisition system, 
the requirements of this section are fully addressed by the Milestone 
Decision Authority for a covered defense business system program as 
acquisition process approvals are considered for such system.
    ``(h) Annual Report.--Not later than March 15 of each year from 
2016 through 2020, the Secretary shall submit to the congressional 
defense committees a report on activities of the Department of Defense 
pursuant to this section. Each report shall include the following:
            ``(1) A description of actions taken and planned with 
        respect to the guidance required by subsection (b) and the 
        defense business enterprise architecture developed pursuant to 
        subsection (d).
            ``(2) A description of actions taken and planned for the 
        reengineering of business processes by the Defense Business 
        Council established pursuant to subsection (e).
            ``(3) A summary of covered defense business system funding 
        and covered defense business systems approved pursuant to 
        subsection (f).
            ``(4) Identification of any covered defense business system 
        program that during the preceding fiscal year was reviewed and 
        not approved pursuant to subsection (f) and the reasons for the 
        lack of approval.
            ``(5) Identification of any covered defense business system 
        program that during the preceding fiscal year failed to achieve 
        initial operational capability within five years after the date 
        the program received Milestone B approval.
            ``(6) For any program identified under paragraph (5), a 
        description of the plan to address the issues that caused the 
        failure.
            ``(7) A discussion of specific improvements in business 
        operations and cost savings resulting from successful covered 
        defense business systems programs.
            ``(8) A copy of the most recent report of the Chief 
        Management Officer of each military department on 
        implementation of business transformation initiatives by such 
        military department in accordance with section 908 of the 
        Duncan Hunter National Defense Authorization Act for Fiscal 
        Year 2009 (Public Law 110-417; 122 Stat. 4569; 10 U.S.C. 2222 
        note).
    ``(i) Definitions.--In this section:
            ``(1)(A) Defense business system.--The term `defense 
        business system' means an information system that is operated 
        by, for, or on behalf of the Department of Defense, including 
        any of the following:
                            ``(i) A financial system.
                            ``(ii) A financial data feeder system.
                            ``(iii) A contracting system.
                            ``(iv) A logistics system.
                            ``(v) A planning and budgeting system.
                            ``(vi) An installations management system.
                            ``(vii) A human resources management 
                        system.
                            ``(viii) A training and readiness system.
                    ``(B) The term does not include--
                            ``(i) a national security system; or
                            ``(ii) an information system used 
                        exclusively by and within the defense 
                        commissary system or the exchange system or 
                        other instrumentality of the Department of 
                        Defense conducted for the morale, welfare, and 
                        recreation of members of the armed forces using 
                        nonappropriated funds.
            ``(2) Covered defense business system.--The term `covered 
        defense business system' means a defense business system that 
        is expected to have a total amount of budget authority, over 
        the period of the current future-years defense program 
        submitted to Congress under section 221 of this title, in 
        excess of the threshold established for the use of special 
        simplified acquisition procedures pursuant to section 
        2304(g)(1)(B) of this title.
            ``(3) Covered defense business system program.--The term 
        `covered defense business system program' means a defense 
        acquisition program to develop and field a covered defense 
        business system or an increment of a covered defense business 
        system.
            ``(4) Enterprise architecture.--The term `enterprise 
        architecture' has the meaning given that term in section 
        3601(4) of title 44.
            ``(5) Information system.--The term `information system' 
        has the meaning given that term in section 11101 of title 40.
            ``(6) National security system.--The term `national 
        security system' has the meaning given that term in section 
        3542(b)(2) of title 44.
            ``(7) Milestone decision authority.--The term `Milestone 
        Decision Authority', with respect to a defense acquisition 
        program, means the individual within the Department of Defense 
        designated with the responsibility to grant milestone approvals 
        for that program.
            ``(8) Business process mapping.--The term `business process 
        mapping' means a procedure in which the steps in a business 
        process are clarified and documented in both written form and 
        in a flow chart.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2222. Defense business systems: business process reengineering; 
                            enterprise architecture; management.''.
    (b) Deadline for Guidance.--The guidance required by subsection 
(b)(1) of section 2222 of title 10, United States Code, as amended by 
subsection (a)(1), shall be issued not later than December 31, 2016.
    (c) Repeal.--Section 811 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 U.S.C. 
2222 note) is repealed.

                    TITLE V--INDUSTRIAL BASE MATTERS

SEC. 501. CODIFICATION AND AMENDMENT OF MENTOR-PROTEGE PROGRAM.

    (a) In General.--Section 831 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1607; 10 U.S.C. 
2302 note) is transferred to chapter 137 of title 10, United States 
Code, inserted so as to appear after section 2323a, redesignated as 
section 2323b, and amended--
            (1) by amending the section heading to read as follows:
``Sec. 2323b. Mentor-Protege Program'';
            (2) by striking ``pilot'' each place such term appears;
            (3) by amending subsection (e)(1) to read as follows:
            ``(1) A developmental program for the protege firm, in such 
        detail as may be reasonable, including--
                    ``(A) factors to assess the protege firm's 
                developmental progress under the program; and
                    ``(B) the anticipated number and type of 
                subcontracts to be awarded to the protege firm.'';
            (4) in subsection (g)(2)(B), by striking ``under subsection 
        (l)(2)'';
            (5) in subsection (h)(1), by inserting ``(15 U.S.C. 631 et 
        seq.)'' after ``Small Business Act'';
            (6) by striking subsection (j) and redesignating 
        subsections (k) and (l) as subsections (j) and (k), 
        respectively;
            (7) by amending subsection (j) (as so redesignated) to read 
        as follows:
    ``(j) Regulations.--The regulations implementing the Mentor-Protege 
Pilot Program established under section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 
1607; 10 U.S.C. 2302 note) as in effect on March 25, 2015, shall apply 
to this section. The Secretary of Defense may revise such regulations 
or prescribe additional regulations necessary to carry out this 
section. The Department of Defense policy regarding the Mentor-Protege 
Program shall be published and maintained as an appendix to the 
Department of Defense Supplement to the Federal Acquisition 
Regulation.'';
            (8) by striking ``prescribed pursuant to subsection (k)'' 
        each place such term appears and inserting ``described in 
        subsection (j)''; and
            (9) in subsection (k) (as so redesignated)--
                    (A) in paragraph (1), by striking ``means a 
                business concern that meets the requirements of section 
                3(a) of the Small Business Act (15 U.S.C. 632(a)) and 
                the regulations promulgated pursuant thereto'' and 
                inserting ``has the meaning given such term under 
                section 3 of the Small Business Act (15 U.S.C. 632)'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (D), by striking ``the 
                        severely disabled'' and inserting ``severely 
                        disabled individuals''; and
                            (ii) in subparagraph (G), by inserting 
                        ``(15 U.S.C. 632(p))'' after ``Small Business 
                        Act'';
                    (C) in paragraph (4), by striking ``of title 10, 
                United States Code'' and inserting ``of this title''; 
                and
                    (D) by amending paragraph (8) to read as follows:
            ``(8) The term `severely disabled individual' means an 
        individual who is blind (as defined in section 8501 of title 
        41) or a severely disabled individual (as defined in such 
        section).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2323a the following new item:

``2323b. Mentor-Protege Program.''.

SEC. 502. AMENDMENTS TO DATA QUALITY IMPROVEMENT PLAN.

    (a) In General.--Section 15(s) of the Small Business Act (15 U.S.C. 
644(s)) is amended--
            (1) by redesignating paragraph (4) as paragraph (6); and
            (2) by inserting after paragraph (3) the following new 
        paragraphs:
            ``(4) Implementation.--Not later than the first day of 
        fiscal year 2017, the Administrator of the Small Business 
        Administration shall implement the plan described in this 
        subsection.
            ``(5) Certification.--The Administrator shall annually 
        provide to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a certification of the accuracy 
        and completeness of data reported on bundled and consolidated 
        contracts.''.
    (b) GAO Study.--
            (1) Study.--Not later than the first day of fiscal year 
        2018, the Comptroller General of the United States shall 
        initiate a study on the effectiveness of the plan described in 
        section 15(s) of the Small Business Act (15 U.S.C. 644(s)) that 
        shall assess whether contracts were accurately labeled as 
        bundled or consolidated.
            (2) Contracts evaluated.--For the purposes of conducting 
        the study described in paragraph (1), the Comptroller General 
        of the United States--
                    (A) shall evaluate, for work in each of sectors 23, 
                33, 54, and 56 (as defined by the North American 
                Industry Classification System), not fewer than 100 
                contracts in each sector;
                    (B) shall evaluate only those contracts--
                            (i) awarded by an agency listed in section 
                        901(b) of title 31, United States Code; and
                            (ii) that have a Base and Exercised Options 
                        Value, an Action Obligation, or a Base and All 
                        Options Value (as such terms are defined in the 
                        Federal procurement data system described in 
                        section 1222(a)(4)(A) of title 41, United 
                        States Code, or any successor system); and
                    (C) shall not evaluate contracts that have used any 
                set aside authority.
            (3) Report.--Not later than 12 months after initiating the 
        study required by paragraph (1), the Comptroller General of the 
        United States shall report to the Committee on Small Business 
        of the House of Representatives and the Committee on Small 
        Business and Entrepreneurship of the Senate on the results from 
        such study and, if warranted, any recommendations on how to 
        improve the quality of data reported on bundled and 
        consolidated contracts.

SEC. 503. NOTICE OF CONTRACT CONSOLIDATION FOR ACQUISITION STRATEGIES.

    (a) Notice Requirement for the Senior Procurement Executive or 
Chief Acquisition Officer.--Section 44(c)(2) of the Small Business Act 
(15 U.S.C. 657q(c)(2)) is amended by adding at the end the following:
                    ``(C) Notice.--Not later than 7 days after making a 
                determination that an acquisition strategy involving a 
                consolidation of contract requirements is necessary and 
                justified under subparagraph (A), the senior 
                procurement executive or Chief Acquisition Officer 
                shall publish a notice on a public website that such 
                determination has been made. Any solicitation for a 
                procurement related to the acquisition strategy may not 
                be published earlier than 7 days after such notice is 
                published. Along with the publication of the 
                solicitation, the senior procurement executive or Chief 
                Acquisition Officer shall publish a justification for 
                the determination, which shall include the information 
                in subparagraphs (A) through (E) of paragraph (1).''.
    (b) Notice Requirement for the Head of a Contracting Agency.--
Section 15(e)(3) of the Small Business Act (15 U.S.C. 644(e)(3)) is 
amended to read as follows:
            ``(3) Strategy specifications.--If the head of a 
        contracting agency determines that an acquisition plan for a 
        procurement involves a substantial bundling of contract 
        requirements, the head of a contracting agency shall publish a 
        notice on a public website that such determination has been 
        made not later than 7 days after making such determination. Any 
        solicitation for a procurement related to the acquisition plan 
        may not be published earlier than 7 days after such notice is 
        published. Along with the publication of the solicitation, the 
        head of a contracting agency shall publish a justification for 
        the determination, which shall include following information:
                    ``(A) The specific benefits anticipated to be 
                derived from the bundling of contract requirements and 
                a determination that such benefits justify the 
                bundling.
                    ``(B) An identification of any alternative 
                contracting approaches that would involve a lesser 
                degree of bundling of contract requirements.
                    ``(C) An assessment of--
                            ``(i) the specific impediments to 
                        participation by small business concerns as 
                        prime contractors that result from the bundling 
                        of contract requirements; and
                            ``(ii) the specific actions designed to 
                        maximize participation of small business 
                        concerns as subcontractors (including 
                        suppliers) at various tiers under the contract 
                        or contracts that are awarded to meet the 
                        requirements.''.
    (c) Technical Amendment.--Section 44(c)(1) of the Small Business 
Act (15 U.S.C. 657q(c)(1)) is amended by striking ``Subject to 
paragraph (4), the head'' and inserting ``The head''.

SEC. 504. CLARIFICATION OF REQUIREMENTS RELATED TO SMALL BUSINESS 
              CONTRACTS FOR SERVICES.

    (a) Procurement Contracts.--Section 8(a)(17) of the Small Business 
Act (15 U.S.C. 637(a)(17)) is amended--
            (1) in subparagraph (A), by striking ``any procurement 
        contract'' and all that follows through ``section 15'' and 
        inserting ``any procurement contract, which contract has as its 
        principal purpose the supply of a product to be let pursuant to 
        this subsection or subsection (m), or section 15(a), 31, or 
        36,''; and
            (2) by adding at the end the following new subparagraph:
            ``(C) Limitation.--This paragraph shall not apply to a 
        contract that has as its principal purpose the acquisition of 
        services or construction.''.
    (b) Subcontractor Contracts.--Section 46(a)(4) of the Small 
Business Act (15 U.S.C. 657s(a)(4)) is amended by striking ``for 
supplies from a regular dealer in such supplies'' and inserting ``which 
is principally for supplies from a regular dealer in such supplies, and 
which is not a contract principally for services or construction,''.

SEC. 505. REVIEW OF GOVERNMENT ACCESS TO INTELLECTUAL PROPERTY RIGHTS 
              OF PRIVATE SECTOR FIRMS.

    (a) Review Required.--The Secretary of Defense shall direct the 
Defense Business Board to conduct a review of Department of Defense 
regulations and practices, and laws authorizing such regulations and 
practices, related to Government access to and use of intellectual 
property rights of private sector firms.
    (b) Report.--Not later than March 1, 2016, the Secretary shall 
submit to the congressional defense committees a report on the findings 
of the Defense Business Board, along with any actions the Secretary 
proposes to revise and clarify laws or regulations related to 
intellectual property rights.

SEC. 506. MODIFICATIONS TO THE SMALL BUSINESS INNOVATIVE RESEARCH 
              PROGRAM AND THE SMALL BUSINESS TECHNOLOGY TRANSFER 
              PROGRAM.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``development;'' 
                and inserting ``development, particularly contracts for 
                research and development supporting defense and 
                national security missions and programs;''; and
                    (B) in paragraph (3), by striking ``; and'' and 
                inserting a semicolon;
            (2) in subsection (e)--
                    (A) in paragraph (4)(C)(i), by inserting ``or non-
                Federal sources of capital'' after ``funding awards''; 
                and
                    (B) in paragraph (6)(C)(i), by inserting ``or non-
                Federal sources of capital'' after ``funding awards'';
            (3) in subsection (f)--
                    (A) in paragraph (1), by striking ``paragraph 
                (2)(B)'' and inserting ``paragraphs (2)(B) and (5)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) Required expenditures for military departments.--The 
        Secretary of each military department shall expend, in 
        connection with SBIR, not less than 2.9 percent and not more 
        than 5 percent of each such military department's extramural 
        budget for research or research and development for fiscal year 
        2018 and each subsequent fiscal year.'';
            (4) in subsection (g)(3)--
                    (A) in subparagraph (A), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in subparagraph (B), by inserting ``or'' after 
                the semicolon; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the Secretary of Defense and as applied to 
                the Department of Defense and each military department, 
                in the quadrennial defense review (described in section 
                118 of title 10, United States Code) and other 
                strategies or reports that direct the research and 
                development and acquisition processes of the Department 
                of Defense;'';
            (5) in subsection (j), by adding at the end the following 
        new paragraph:
            ``(4) Modifications related to military departments.--Not 
        later than 90 days after March 25, 2015, the Administrator 
        shall modify the policy directives issued pursuant to this 
        subsection to establish the authority of each Secretary of a 
        military department to manage and operate the SBIR program 
        funded under subsection (f)(5).'';
            (6) in subsection (k)(2)--
                    (A) by striking ``subsection (f)(1)'' and inserting 
                ``paragraphs (1) and (4) of subsection (f)''; and
                    (B) by striking ``subsection (n)(1)'' and inserting 
                ``paragraphs (1) and (4) of subsection (n)'';
            (7) in subsection (m), by inserting ``, except as provided 
        in subsections (f)(5) and (n)(4)'' after ``2017'';
            (8) in subsection (n)--
                    (A) in paragraph (1)(B), by striking ``The 
                percentage'' and inserting ``Except as provided in 
                paragraph (4), the percentage''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(4) Required expenditure for military departments.--The 
        Secretary of each military department shall expend, in 
        connection with STTR, not more than 5 percent of each such 
        military department's extramural budget for research or 
        research and development for fiscal year 2018 and each 
        subsequent fiscal year.'';
            (9) in subsection (o)(3)(B), by striking ``Code;'' and 
        inserting ``Code, and in other reports that direct the research 
        and development and acquisition processes of the Department of 
        Defense;'';
            (10) in subsection (p), by adding at the end the following 
        new paragraph:
            ``(4) Modifications related to military departments.--Not 
        later than 90 days after the date of enactment of the Agile 
        Acquisition to Retain Technological Edge Act, the Administrator 
        shall modify the policy directives issued pursuant to this 
        subsection to establish the authority of each Secretary of a 
        military department to manage and operate the STTR program 
        funded under subsection (n)(4).'';
            (11) in subsection (r)(4), by adding at the end the 
        following sentence: ``For the Department of Defense, such Phase 
        III awards shall be made in conformance with defense and 
        national security missions and programs.'';
            (12) in subsection (x)(2)(B), by inserting ``(or its 
        successor)'' before the period at the end;
            (13) in subsection (aa)(4)--
                    (A) in the paragraph heading, by inserting ``or 
                Project'' after ``Topic''; and
                    (B) by inserting ``or project'' after ``topic'';
            (14) in subsection (bb)(1), by striking ``another Federal 
        agency'' and inserting ``one or more other Federal agencies'';
            (15) in subsection (ff)(1)--
                    (A) by striking ``1 additional Phase II SBIR award 
                or Phase II STTR award'' and inserting ``one or more 
                additional Phase II SBIR awards or Phase II STTR 
                awards''; and
                    (B) by inserting ``from one or more Federal 
                agencies'' after ``project''; and
            (16) in subsection (qq)(2), by adding at the end the 
        following new subparagraph:
                    ``(C) Implementation deadline.--The head of each 
                Federal agency shall implement the requirements 
                described under subparagraph (A) not later than 
                December 31, 2017.''.

SEC. 507. EXTENSION OF DEFENSE RESEARCH AND DEVELOPMENT RAPID 
              INNOVATION PROGRAM.

    Subsection (d) of section 1073 of the Ike Skeleton National Defense 
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 124 Stat. 
4366; 10 U.S.C. 2359 note) is amended by striking ``through 2015'' and 
inserting ``through 2020''.

         TITLE VI--REPEAL OR REVISION OF REPORTING REQUIREMENTS

SEC. 601. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

    (a) Reports Related to Military Personnel Issues (Other Than Health 
Care).--
            (1) Report on voting assistance programs effectiveness and 
        compliance.--Section 1566(c) of title 10, United States Code, 
        is amended--
                    (A) by striking ``(1)'' after the subsection 
                heading; and
                    (B) by striking paragraphs (2) and (3).
            (2) Report on aviation officer retention bonuses.--Section 
        301b(i) of title 37, United States Code, is amended--
                    (A) by striking ``(1)'' after the subsection 
                heading; and
                    (B) by striking paragraph (2).
            (3) Report on foreign language proficiency incentive pay.--
        Section 316a of title 37, United States Code, as amended by 
        section 615(5) of this Act, is amended--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f).
            (4) Report on use of waiver authority for military service 
        academy appointments.--Section 553 of the National Defense 
        Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10 
        U.S.C. 4346 note) is amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e).
            (5) Report on increase in junior reserve officers' training 
        corps units.--Subsection (e) of section 548 of the Duncan 
        Hunter National Defense Authorization Act for Fiscal Year 2009 
        (Public Law 110-417; 122 Stat. 4466) is repealed.
            (6) Report on implementation of yellow ribbon reintegration 
        program.--
                    (A) Reporting requirement.--Section 582(e) of the 
                National Defense Authorization Act for Fiscal Year 2008 
                (Public Law 110-181; 10 U.S.C. 10101 note) is amended 
                by striking paragraph (4).
                    (B) Conforming repeal.--Section 597 of the National 
                Defense Authorization Act for Fiscal Year 2010 (Public 
                Law 111-84; 10 U.S.C. 10101 note) is repealed.
            (7) Report on local educational agency assistance related 
        to dod activities.--Section 574 of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
        364; 20 U.S.C. 7703b note) is amended--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) and (e) as 
                subsections (c) and (d), respectively.
    (b) Reports Related to Health Care.--
            (1) Reports on health protection quality and health 
        assessment data.--
                    (A) Section 1073b of title 10, United States Code, 
                is repealed.
                    (B) The table of sections at the beginning of 
                chapter 55 of title 10, United States Code, is amended 
                by striking the item relating to section 1073b.
            (2) Report on standards of facilities.--Section 1648 of the 
        Wounded Warrior Act (10 U.S.C. 1071 note) is amended by 
        striking subsection (f).
            (3) Report on inspections of facilities.--Section 1662 of 
        the Wounded Warrior Act (10 U.S.C. 1071 note) is amended--
                    (A) by striking ``(a) Required Inspections of 
                Facilities.--''; and
                    (B) by striking subsection (b).
            (4) Report on inspections of other facilities.--Section 
        3307 of the U.S. Troop Readiness, Veterans' Care, Katrina 
        Recovery, and Iraq Accountability Appropriations Act, 2007 (10 
        U.S.C. 1073 note) is amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d).
    (c) Reports Related to Readiness.--
            (1) Report on arsenal support program initiative.--Section 
        323 of the Floyd Spence National Defense Authorization Act for 
        Fiscal Year 2001 (Public Law 106-398; 10 U.S.C. 4551 note) is 
        amended by striking subsection (g).
            (2) GAO review of contractor-operated civil engineering 
        supply stores program.--Section 345 of the Strom Thurmond 
        National Defense Authorization Act for Fiscal Year 1999 (Public 
        Law 105-26; 112 Stat. 1978) is amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d).
    (d) Reports Related to Naval Vessels and Merchant Marine.--
            (1) Report on naming of naval vessels.--Section 7292 of 
        title 10, United States Code, is amended by striking subsection 
        (d).
            (2) Report on transfer of vessels stricken from naval 
        vessel register.--Section 7306 of title 10, United States Code, 
        is amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) and (f) as 
                subsections (d) and (e), respectively.
            (3) Reports on mission modules of littoral combat ship.--
        Section 126 of the National Defense Authorization Act for 
        Fiscal Year 2013 (Public Law 112-239) is amended--
                    (A) by striking ``(b) Additional Quarterly 
                Reports.--''; and
                    (B) by striking subsection (b).
            (4) Report on cost estimate of cvn-79.--Section 122 of the 
        John Warner National Defense Authorization Act for Fiscal Year 
        2007 (Public Law 109-364; 120 Stat. 2104), as most recently 
        amended by section 121 of the National Defense Authorization 
        Act for Fiscal Year 2014 (Public Law 113-66), is amended by 
        striking subsection (f).
            (5) Report on assessments of first ship of a shipbuilding 
        program.--Section 124 of the National Defense Authorization Act 
        for Fiscal Year 2008 is repealed.
            (6) Annual report of federal maritime commission.--
                    (A) Section 50111 of title 46, United States Code, 
                is repealed.
                    (B) The table of sections at the beginning of 
                chapter 501 of title 46, United States Code, is amended 
                by striking the item relating to section 50111.
            (7) Discretionary reports no longer needed.--The Secretary 
        of the Navy is not required to submit to the congressional 
        defense committees--
                    (A) a report, or updates to such a report, on open 
                architecture as described in Senate Report 110-077; or
                    (B) a monthly report on Ford class aircraft 
                carriers not otherwise required by law.
    (e) Reports Related to Nuclear, Proliferation, and Related 
Matters.--
            (1) Report on proliferation security initiative.--Section 
        1821(b) of the Implementing Recommendations of the 9/11 
        Commission Act of 2007 (50 U.S.C. 2911) is amended--
                    (A) by striking ``(1) In General.--''; and
                    (B) by striking paragraphs (2) and (3).
            (2) Report on warhead life extension options.--The National 
        Defense Authorization Act for Fiscal Year 2014 (Public Law 113-
        66) is amended by repealing section 3118.
            (3) Report on nuclear weapons council.--Section 179 of 
        title 10, United States Code, is amended by striking subsection 
        (g).
            (4) Briefings on dialogue between united states and russian 
        federation on nuclear arms.--Section 1282 of the National 
        Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 5951 
        note) is amended--
                    (A) by striking subsection (a); and
                    (B) by redesignating subsections (b) and (c) as 
                subsections (a) and (b), respectively.
            (5) Implementation plan for whole-of- government vision 
        prescribed in the national security strategy.--Section 1072 of 
        the National Authorization Act for Fiscal Year 2012 (50 U.S.C. 
        3043 note) is amended--
                    (A) by striking ``(a) Implementation Plan.--'';
                    (B) by striking subsection (b); and
                    (C) by redesignating subsection (c) as subsection 
                (b).
    (f) Reports Related to Missile Defense.--
            (1) Report on ground-based midcourse defense program.--
        Section 234 of the National Defense Authorization Act for 
        Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1340) is 
        amended--
                    (A) by striking ``(a) Sense of Congress.--''; and
                    (B) by striking subsection (b).
            (2) Report on missile defense executive board activities.--
        Section 232 of the National Defense Authorization Act for 
        Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1339) is 
        amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b).
    (g) Reports Related to Acquisition.--
            (1) Report on foreign purchases.--Section 8305 of title 41, 
        United States Code, is repealed.
            (2) Report on cost assessment activities.--Section 2334 of 
        title 10, United States Code, is amended--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f).
            (3) Report on performance assessments and root cause 
        analyses.--Section 2438 of title 10, United States Code, is 
        amended by striking subsection (f).
    (h) Reports Related to Civilian Personnel.--
            (1) Report on experimental program for scientific and 
        technical personnel.--Section 1101 of the Strom Thurmond 
        National Defense Authorization Act for Fiscal Year 1999 (Public 
        Law 105-261; 112 Stat. 2139) is amended by striking subsection 
        (g).
            (2) Report on pilot program for exchange of information 
        technology personnel.--Section 1110 of the National Defense 
        Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 
        Stat. 2493) is amended--
                    (A) by striking subsection (i);
                    (B) by redesignating subsection (j) as subsection 
                (i); and
                    (C) in subsection (i) (as redesignated by 
                subparagraph (B)), by amending paragraph (2) to read as 
                follows:
            ``(2) any employee whose assignment is allowed to continue 
        by virtue of paragraph (1) shall be taken into account for 
        purposes of the numerical limitation under subsection (h).''.
            (3) GAO report with respect to department of defense 
        performance management and workforce incentive system.--Section 
        9902(h) of title 5, United States Code, is amended--
                    (A) in paragraph (1)(B), by striking ``and the 
                Comptroller General,'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2).
    (i) Miscellaneous Reports.--
            (1) Report on rewards for combating terrorism.--Section 
        127b of title 10, United States Code, is amended--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f).
            (2) Report on technological maturity and integration risk 
        of critical technologies.--Section 138b of title 10, United 
        States Code, is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(b)(1)'' and inserting ``(b)''.
            (3) Report on systems engineering.--Section 139b(d) of 
        title 10, United States Code, is amended--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraph (3) as paragraph 
                (2);
                    (C) in paragraph (2), as redesignated by 
                subparagraph (B)--
                            (i) by striking ``or (2)'';
                            (ii) in subparagraph (A), by striking 
                        ``systems engineering master plans and'';
                            (iii) in subparagraph (B), by striking ``, 
                        systems engineering master plans,'';
                            (iv) in subparagraph (C), by striking 
                        ``systems engineering, development planning,'' 
                        and inserting ``development planning''; and
                            (v) by redesignating subparagraph (D) as 
                        subparagraph (F);
                    (D) by transferring subparagraphs (A) and (B) of 
                paragraph (4) to paragraph (2), as so redesignated, and 
                redesignating those subparagraphs as subparagraphs (D) 
                and (E), respectively; and
                    (E) by striking paragraph (4).
            (4) Report on humanitarian demining assistance authority.--
        Section 407 of title 10, United States Code, is amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d).
            (5) Report on regional defense counterterrorism fellowship 
        program.--Section 2249c of title 10, United States Code, is 
        amended by striking subsection (c).
            (6) Report on space science and technology strategy.--
        Section 2272(a) of title 10, United States Code, is amended by 
        striking paragraph (5).
            (7) Report on darpa.--
                    (A) Repeal.--Section 2352 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 139 of title 10, United States 
                Code, is amended by striking the item relating to 
                section 2352.
            (8) Report on airlift requirements.--Section 112 of the 
        National Defense Authorization Act for Fiscal Year 2013 (Public 
        Law 112-239; 126 Stat. 1654) is repealed.
            (9) Report on interagency collaboration on unmanned 
        aircraft systems.--Section 1052(b) of the National Defense 
        Authorization Act for Fiscal Year 2013 (Public Law 112-239; 49 
        U.S.C. 40101 note) is amended by striking paragraph (4).
            (10) Report on in-kind payments.--Section 2805 of the 
        National Defense Authorization Act for Fiscal Year 2013 (Public 
        Law 112-239; 126 Stat. 2149) is repealed.
            (11) Report on airborne signals intelligence, surveillance, 
        and reconnaissance capabilities.--Section 112(b) of the Ike 
        Skelton National Defense Authorization Act for Fiscal Year 2011 
        (Public Law 111-383; 124 Stat. 4153) is amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraph (4) as paragraph 
                (3).
            (12) Reports on status of navy next generation enterprise 
        networks program.--Section 1034 of the Duncan Hunter National 
        Defense Authorization Act for Fiscal Year 2009 (Public Law 110-
        417; 122 Stat. 4593) is repealed.

   TITLE VII--PLANNING, BUDGETING, CONTRACTING, OVERSIGHT, AND OTHER 
                            RELATED MATTERS

SEC. 701. ADDITIONAL RESPONSIBILITY FOR DIRECTOR OF OPERATIONAL TEST 
              AND EVALUATION.

    (a) Additional Responsibility.--Section 139 of title 10, United 
States Code, is amended--
            (1) by redesignating subsections (c), (d), (e), (f), (g), 
        (h), (i), (j), and (k) as subsections (d), (e), (f), (g), (h), 
        (i), (j), (k), and (l), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) The Director shall consider the potential for increases in 
program cost estimates or delays in schedule estimates in the 
implementation of policies, procedures, and activities related to 
operational test and evaluation and shall take appropriate action to 
ensure that operational test and evaluation activities do not 
unnecessarily increase program costs or impede program schedules.''.
    (b) Conforming Amendment.--Section 196(c)(1)(A)(ii) of such title 
is amended by striking ``section 139(i)'' and inserting ``section 
139(k)''.

SEC. 702. REPORT ON LINKING AND STREAMLINING REQUIREMENTS, ACQUISITION, 
              AND BUDGET PROCESSES WITHIN ARMED FORCES.

    (a) Reports.--Not later than 180 days after the date of the 
enactment of this Act, 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 each submit to the congressional 
defense committees a report on efforts to link and streamline the 
requirements, acquisition, and budget processes within the Army, Navy, 
Air Force, and Marine Corps, respectively.
    (b) Matters Included.--Each report under subsection (a) shall 
include the following:
            (1) A specific description of--
                    (A) the management actions the Chief concerned or 
                the Commandant has taken or plans to take to link and 
                streamline the requirements, acquisition, and budget 
                processes of the Armed Force concerned;
                    (B) any reorganization or process changes that will 
                link and streamline the requirements, acquisition, and 
                budget processes of the Armed Force concerned; and
                    (C) any cross-training or professional development 
                initiatives of the Chief concerned or the Commandant.
            (2) For each description under paragraph (1)--
                    (A) the specific timeline associated with 
                implementation;
                    (B) the anticipated outcomes once implemented; and
                    (C) how to measure whether or not those outcomes 
                are realized.
            (3) Any other matters the Chief concerned or the Commandant 
        considers appropriate.

SEC. 703. REQUIRED REVIEW OF ACQUISITION-RELATED FUNCTIONS OF THE 
              CHIEFS OF STAFF OF THE ARMED FORCES.

    (a) Review Required.--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 conduct a review of their current 
individual authorities provided in sections 3033, 5033, 8033, and 5043 
of title 10, United States Code, and other relevant statutes and 
regulations related to defense acquisitions for the purpose of 
developing such recommendations as the Chief concerned or the 
Commandant considers necessary to further or advance the role of the 
Chief concerned or the Commandant in the development of requirements, 
acquisition processes, and the associated budget practices of the 
Department of Defense.
    (b) Reports.--Not later than September 15, 2015, 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 each submit to 
the congressional defense committees a report containing, at a minimum, 
the following:
            (1) The recommendations developed by the Chief concerned or 
        the Commandant under subsection (a) and other results of the 
        review conducted under such subsection.
            (2) The actions the Chief concerned or the Commandant is 
        taking, if any, within the Chief's or Commandant's existing 
        authority to implement such recommendations.

SEC. 704. FAR COUNCIL MEMBERSHIP FOR ADMINISTRATOR OF SMALL BUSINESS 
              ADMINISTRATION.

    (a) Addition of Administrator of Small Business Administration to 
Federal Acquisition Regulatory Council.--Section 1302(b)(1) of title 
41, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period and inserting ``; and'' at the 
        end of subparagraph (D); and
            (3) by adding at the end the following new subparagraph:
                    ``(E) the Administrator of the Small Business 
                Administration.''.
    (b) Conforming Amendments.--Such title is amended--
            (1) in section 1303(a)(1)--
                    (A) by striking ``and the Administrator of National 
                Aeronautics and Space,'' and inserting ``the 
                Administrator of National Aeronautics and Space, and 
                the Administrator of the Small Business 
                Administration,''; and
                    (B) by striking ``and the National Aeronautics and 
                Space Act of 1958 (42 U.S.C. 2451 et seq.),'' and 
                inserting ``the National Aeronautics and Space Act of 
                1958 (42 U.S.C. 2451 et seq.), and the Small Business 
                Act (15 U.S.C. 631 et seq.),''; and
            (2) in section 1121(d), by striking ``and the General 
        Services Administration'' and inserting ``the General Services 
        Administration, and the Small Business Administration''.

SEC. 705. INDEPENDENT STUDY OF MATTERS RELATED TO BID PROTESTS.

    (a) Requirement for Study.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Defense shall enter into 
a contract with an independent research entity that is a not-for-profit 
entity or a federally funded research and development center with 
appropriate expertise and analytical capability to carry out a 
comprehensive study of factors leading to the filing of bid protests. 
The study shall examine issues such as the following:
            (1) The variable influences on the net benefit (monetary 
        and non-monetary) to contractors either filing a protest or 
        indicating intent to file a protest.
            (2) The extent to which protests are filed by incumbent 
        contractors for purposes of extending a contract's period of 
        performance.
            (3) The extent to which companies file protests even if 
        they do not contest that there was an error in the procurement 
        process.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the independent entity shall provide to the 
Secretary and the congressional defense committees a report on the 
results of the study, along with any recommendations it may have.

SEC. 706. PROCUREMENT OF COMMERCIAL ITEMS.

    (a) Delegation of Responsibility for Commercial Item 
Determinations.--Section 2375 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Delegation of Responsibility Within Department of Defense for 
Commercial Item Determinations.--(1) The Secretary of Defense shall 
designate an individual within the Department of Defense to be 
responsible for making determinations that, for the purpose of 
procurement of an item by a component of the Department of Defense, an 
item is a commercial item as described in section 103 of title 41. The 
Secretary shall ensure that the designated individual receives 
sufficient--
            ``(A) staff and resources so that determinations are made 
        in an expedient manner; and
            ``(B) staff support or authorities (or both) to provide 
        technical expertise on the functionality of an item subject to 
        determination and expertise in conducting market research 
        related to the item.
    ``(2) The Secretary of Defense shall provide public access to 
Department of Defense determinations regarding whether an item is a 
commercial item for the purpose of procurement by a component of the 
Department of Defense. Each determination shall include a summary 
explanation of the basis for the determination.''.
    (b) Commercial Item Exception to Submission of Cost and Pricing 
Data.--Section 2306a(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) Consideration of determination of commercial item.--
        For purposes of applying the commercial item exception under 
        paragraph (1)(B) to the required submission of certified cost 
        or pricing data, the contracting officer shall use the 
        determinations made by the individual designated by the 
        Secretary of Defense under section 2375(d) of this title.''.
    (c) Implementation.--The Secretary of Defense shall ensure that the 
requirements of sections 2375(d) and 2306a(b)(4) of title 10, United 
States Code, as added by this section, are implemented not later than 
180 days after the date of the enactment of this Act to ensure that 
sufficient capability is available within the Department of Defense to 
make necessary determinations in a timely manner.

SEC. 707. AMENDMENT RELATING TO MULTIYEAR CONTRACT AUTHORITY FOR 
              ACQUISITION OF PROPERTY.

    Paragraph (1) of section 2306b(a) of title 10, United States Code, 
is amended to read as follows:
            ``(1) That there is a reasonable expectation that the use 
        of such a contract will result in lower total anticipated costs 
        of carrying out the program than if the program were carried 
        out through annual contracts.''.

SEC. 708. USE OF RECENT PRICES PAID BY THE GOVERNMENT IN THE 
              DETERMINATION OF PRICE REASONABLENESS.

    Section 2306a(b) of title 10, United States Code, as amended by 
section 706, is further amended by adding at the end the following new 
paragraph:
            ``(5) A contracting officer may consider evidence provided 
        by an offeror of recent purchase prices paid by the Government 
        for identical or similar commercial items in establishing price 
        reasonableness on a subsequent purchase if the contracting 
        officer is satisfied that the prices previously paid remain a 
        valid reference for comparison after considering the totality 
        of other relevant factors such as the time elapsed since the 
        prior purchase and any differences in the quantities purchased 
        or applicable terms and conditions.''.

SEC. 709. CODIFICATION OF OTHER TRANSACTION AUTHORITY FOR CERTAIN 
              PROTOTYPE PROJECTS.

    (a) In General.--Section 845 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note) is 
transferred to chapter 139 of title 10, United States Code, inserted so 
as to appear after section 2371a, redesignated as section 2371b, and 
amended--
            (1) by amending the section heading to read as follows:
``Sec. 2371b. Authority of the Advanced Research Projects Agency to 
              carry out certain prototype projects'';
            (2) by striking ``of title 10, United States Code'' each 
        place it appears and inserting ``of this title'';
            (3) by striking ``of title 41, United States Code'' each 
        place it appears and inserting ``of title 41'';
            (4) by amending subparagraph (B) of subsection (d)(1) to 
        read as follows:
            ``(B) all parties to the transaction other than the Federal 
        Government are innovative small business and nontraditional 
        contractors with unique capabilities relevant to the prototype 
        project.''; and
            (5) by striking subsection (i).
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2371a the following new item:

``2371b. Authority of the Advanced Research Projects Agency to carry 
                            out certain prototype projects.''.

SEC. 710. AMENDMENTS TO CERTAIN ACQUISITION THRESHOLDS.

    (a) Simplified Acquisition Threshold Generally.--Section 134 of 
title 41, United States Code, is amended by striking ``$100,000'' and 
inserting ``$500,000''.
    (b) Micro-Purchase Threshold.--Section 1902(a) of title 41, United 
States Code, is amended by striking ``$3,000'' and inserting 
``$5,000''.
    (c) Special Emergency Procurement Authority.--Section 1903(b)(2) of 
title 41, United States Code, is amended--
            (1) in subparagraph (A), by striking ``$250,000'' and 
        inserting ``$750,000''; and
            (2) in subparagraph (B), by striking ``$1,000,000'' and 
        inserting ``$1,500,000''.
    (d) Small Business Concern Reservation.--Section 15(j)(1) of the 
Small Business Act (15 U.S.C. 644(j)(1)) is amended by striking 
``$100,000'' and inserting ``$500,000''.

SEC. 711. REVISION OF METHOD OF ROUNDING WHEN MAKING INFLATION 
              ADJUSTMENT OF ACQUISITION-RELATED DOLLAR THRESHOLDS.

    Section 1908(e)(2) of title 41, United States Code, is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``on the day before the adjustment'' and inserting ``as 
        calculated under paragraph (1)'';
            (2) by striking ``and'' at the end of subparagraph (C); and
            (3) by striking subparagraph (D) and inserting the 
        following new subparagraphs:
                    ``(D) not less than $1,000,000, but less than 
                $10,000,000, to the nearest $500,000;
                    ``(E) not less than $10,000,000, but less than 
                $100,000,000, to the nearest $5,000,000;
                    ``(F) not less than $100,000,000, but less than 
                $1,000,000,000, to the nearest $50,000,000; and
                    ``(G) $1,000,000,000 or more, to the nearest 
                $500,000,000.''.

SEC. 712. REPEAL OF REQUIREMENT FOR STAND-ALONE MANPOWER ESTIMATES FOR 
              MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Repeal of Requirement.--Subsection (a)(1) of section 2434 of 
title 10, United States Code, is amended by striking ``and a manpower 
estimate for the program have'' and inserting ``has''.
    (b) Conforming Amendments Relating to Regulations.--Subsection (b) 
of such section is amended--
            (1) by striking paragraph (2);
            (2) by striking ``shall require--'' and all that follows 
        through ``that the independent'' and inserting ``shall require 
        that the independent'';
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively, and realigning those 
        paragraphs so as to be two ems from the left margin; and
            (4) in paragraph (2), as so redesignated--
                    (A) by striking ``and operations and support,'' and 
                inserting ``operations and support, and manpower to 
                operate, maintain, and support the program upon full 
                operational deployment,''; and
                    (B) by striking ``; and'' at the end and inserting 
                a period.
    (c) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 2434. Independent cost estimates''.
            (2) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of chapter 144 of 
        such title is amended to read as follows:

``2434. Independent cost estimates.''.
                                 <all>