[United States Statutes at Large, Volume 130, 114th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 114-328
114th Congress

An Act


 
To authorize appropriations for fiscal year 2017 for military activities
of the Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, 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 ``National Defense Authorization Act
for Fiscal Year 2017''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

(a) Divisions.--This Act is organized into five divisions as
follows:
(1) Division A--Department of Defense Authorizations.
(2) Division B--Military Construction Authorizations.
(3) Division C--Department of Energy National Security
Authorizations and Other Authorizations.
(4) Division D--Funding Tables.
(5) Division E--Uniform Code of Military Justice Reform.

(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees.
Sec. 4. Budgetary effects of this Act.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Authorization of appropriations.

Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for AH-64E Apache helicopters.
Sec. 112. Multiyear procurement authority for UH-60M and HH-60M Black
Hawk helicopters.
Sec. 113. Distributed Common Ground System-Army increment 1.
Sec. 114. Assessment of certain capabilities of the Department of the
Army.

Subtitle C--Navy Programs

Sec. 121. Determination of vessel delivery dates.
Sec. 122. Incremental funding for detail design and construction of LHA
replacement ship designated LHA 8.
Sec. 123. Littoral Combat Ship.
Sec. 124. Limitation on use of sole-source shipbuilding contracts for
certain vessels.
Sec. 125. Limitation on availability of funds for the Advanced Arresting
Gear Program.

[[Page 2001]]

Sec. 126. Limitation on availability of funds for procurement of U.S.S.
Enterprise (CVN-80).
Sec. 127. Sense of Congress on aircraft carrier procurement schedules.
Sec. 128. Report on P-8 Poseidon aircraft.
Sec. 129. Design and construction of replacement dock landing ship
designated LX(R) or amphibious transport dock designated LPD-
29.

Subtitle D--Air Force Programs

Sec. 131. EC-130H Compass Call recapitalization program.
Sec. 132. Repeal of requirement to preserve certain retired C-5
aircraft.
Sec. 133. Repeal of requirement to preserve F-117 aircraft in recallable
condition.
Sec. 134. Prohibition on availability of funds for retirement of A-10
aircraft.
Sec. 135. Limitation on availability of funds for destruction of A-10
aircraft in storage status.
Sec. 136. Prohibition on availability of funds for retirement of Joint
Surveillance Target Attack Radar System aircraft.
Sec. 137. Elimination of annual report on aircraft inventory.

Subtitle E--Defense-wide, Joint, and Multiservice Matters

Sec. 141. Standardization of 5.56mm rifle ammunition.
Sec. 142. Fire suppressant and fuel containment standards for certain
vehicles.
Sec. 143. Limitation on availability of funds for destruction of certain
cluster munitions.
Sec. 144. Report on Department of Defense munitions strategy for the
combatant commands.
Sec. 145. Modifications to reporting on use of combat mission
requirements funds.
Sec. 146. Report on alternative management structures for the F-35 joint
strike fighter program.
Sec. 147. Comptroller General review of F-35 Lightning II aircraft
sustainment support.
Sec. 148. Briefing on acquisition strategy for Ground Mobility Vehicle.
Sec. 149. Study and report on optimal mix of aircraft capabilities for
the Armed Forces.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Laboratory quality enhancement program.
Sec. 212. Modification of mechanisms to provide funds for defense
laboratories for research and development of technologies for
military missions.
Sec. 213. Making permanent authority for defense research and
development rapid innovation program.
Sec. 214. Authorization for National Defense University and Defense
Acquisition University to enter into cooperative research and
development agreements.
Sec. 215. Manufacturing Engineering Education Grant Program.
Sec. 216. Notification requirement for certain rapid prototyping,
experimentation, and demonstration activities.
Sec. 217. Increased micro-purchase threshold for research programs and
entities.
Sec. 218. Improved biosafety for handling of select agents and toxins.
Sec. 219. Designation of Department of Defense senior official with
principal responsibility for directed energy weapons.
Sec. 220. Restructuring of the distributed common ground system of the
Army.
Sec. 221. Limitation on availability of funds for the countering weapons
of mass destruction system Constellation.
Sec. 222. Limitation on availability of funds for Defense Innovation
Unit Experimental.
Sec. 223. Limitation on availability of funds for Joint Surveillance
Target Attack Radar System (JSTARS) recapitalization program.
Sec. 224. Acquisition program baseline and annual reports on follow-on
modernization program for F-35 Joint Strike Fighter.

Subtitle C--Reports and Other Matters

Sec. 231. Strategy for assured access to trusted microelectronics.
Sec. 232. Pilot program on evaluation of commercial information
technology.
Sec. 233. Pilot program for the enhancement of the research,
development, test, and evaluation centers of the Department
of Defense.
Sec. 234. Pilot program on modernization and fielding of electromagnetic
spectrum warfare systems and electronic warfare capabilities.

[[Page 2002]]

Sec. 235. Pilot program on disclosure of certain sensitive information
to federally funded research and development centers.
Sec. 236. Pilot program on enhanced interaction between the Defense
Advanced Research Projects Agency and the service academies.
Sec. 237. Independent review of F/A-18 physiological episodes and
corrective actions.
Sec. 238. B-21 bomber development program accountability matrices.
Sec. 239. Study on helicopter crash prevention and mitigation
technology.
Sec. 240. Strategy for Improving Electronic and Electromagnetic Spectrum
Warfare Capabilities.
Sec. 241. Sense of Congress on development and fielding of fifth
generation airborne systems.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Authorization of appropriations.

Subtitle B--Energy and Environment

Sec. 311. Modified reporting requirement related to installations energy
management.
Sec. 312. Waiver authority for alternative fuel procurement requirement.
Sec. 313. Utility data management for military facilities.
Sec. 314. Alternative technologies for munitions disposal.
Sec. 315. Report on efforts to reduce high energy costs at military
installations.
Sec. 316. Sense of Congress on funding decisions relating to climate
change.

Subtitle C--Logistics and Sustainment

Sec. 321. Revision of deployability rating system and planning reform.
Sec. 322. Revision of guidance relating to corrosion control and
prevention executives.
Sec. 323. Pilot program for inclusion of certain industrial plants in
the Armament Retooling and Manufacturing Support Initiative.
Sec. 324. Repair, recapitalization, and certification of dry docks at
naval shipyards.
Sec. 325. Private sector port loading assessment.
Sec. 326. Strategy on revitalizing Army organic industrial base.

Subtitle D--Reports

Sec. 331. Modifications to Quarterly Readiness Report to Congress.
Sec. 332. Report on average travel costs of members of the reserve
components.
Sec. 333. Report on HH-60G sustainment and Combat Rescue Helicopter
program.

Subtitle E--Other Matters

Sec. 341. Air navigation matters.
Sec. 342. Contract working dogs.
Sec. 343. Plan, funding documents, and management review relating to
explosive ordnance disposal.
Sec. 344. Process for communicating availability of surplus ammunition.
Sec. 345. Mitigation of risks posed by window coverings with accessible
cords in certain military housing units.
Sec. 346. Access to military installations by transportation companies.
Sec. 347. Access to wireless high-speed Internet and network connections
for certain members of the Armed Forces.
Sec. 348. Limitation on availability of funds for Office of the Under
Secretary of Defense for Intelligence.
Sec. 349. Limitation on development and fielding of new camouflage and
utility uniforms.
Sec. 350. Plan for improved dedicated adversary air training enterprise
of the Air Force.
Sec. 351. Independent review and assessment of the Ready Aircrew Program
of the Air Force.
Sec. 352. Study on space-available travel system of the Department of
Defense.
Sec. 353. Evaluation of motor carrier safety performance and safety
technology.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revisions in permanent active duty end strength minimum
levels.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.

[[Page 2003]]

Sec. 412. End strengths for reserves on active duty in support of the
reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2017 limitation on number of non-dual status
technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active
duty for operational support.
Sec. 416. Technical corrections to annual authorization for personnel
strengths.

Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Reduction in number of general and flag officers on active
duty and authorized strength after December 31, 2022, of such
general and flag officers.
Sec. 502. Repeal of statutory specification of general or flag officer
grade for various positions in the Armed Forces.
Sec. 503. Number of Marine Corps general officers.
Sec. 504. Promotion eligibility period for officers whose confirmation
of appointment is delayed due to nonavailability to the
Senate of probative information under control of non-
Department of Defense agencies.
Sec. 505. Continuation of certain officers on active duty without regard
to requirement for retirement for years of service.
Sec. 506. Equal consideration of officers for early retirement or
discharge.
Sec. 507. Modification of authority to drop from rolls a commissioned
officer.
Sec. 508. Extension of force management authorities allowing enhanced
flexibility for officer personnel management.
Sec. 509. Pilot programs on direct commissions to cyber positions.
Sec. 510. Length of joint duty assignments.
Sec. 510A. Revision of definitions used for joint officer management.

Subtitle B--Reserve Component Management

Sec. 511. Authority for temporary waiver of limitation on term of
service of Vice Chief of the National Guard Bureau.
Sec. 512. Rights and protections available to military technicians.
Sec. 513. Inapplicability of certain laws to National Guard technicians
performing active Guard and Reserve duty.
Sec. 514. Extension of removal of restrictions on the transfer of
officers between the active and inactive National Guard.
Sec. 515. Extension of temporary authority to use Air Force reserve
component personnel to provide training and instruction
regarding pilot training.
Sec. 516. Expansion of eligibility for deputy commander of combatant
command having United States among geographic area of
responsibility to include officers of the Reserves.

Subtitle C--General Service Authorities

Sec. 521. Matters relating to provision of leave for members of the
Armed Forces, including prohibition on leave not expressly
authorized by law.
Sec. 522. Transfer of provision relating to expenses incurred in
connection with leave canceled due to contingency operations.
Sec. 523. Expansion of authority to execute certain military
instruments.
Sec. 524. Medical examination before administrative separation for
members with post-traumatic stress disorder or traumatic
brain injury in connection with sexual assault.
Sec. 525. Reduction of tenure on the temporary disability retired list.
Sec. 526. Technical correction to voluntary separation pay and benefits.
Sec. 527. Consolidation of Army marketing and pilot program on
consolidated Army recruiting.

Subtitle D--Member Whistleblower Protections and Correction of Military
Records

Sec. 531. Improvements to whistleblower protection procedures.
Sec. 532. Modification of whistleblower protection authorities to
restrict contrary findings of prohibited personnel action by
the Secretary concerned.
Sec. 533. Availability of certain Correction of Military Records and
Discharge Review Board information through the Internet.
Sec. 534. Improvements to authorities and procedures for the correction
of military records.
Sec. 535. Treatment by discharge review boards of claims asserting post-
traumatic stress disorder or traumatic brain injury in
connection with combat or sexual trauma as a basis for review
of discharge.

[[Page 2004]]

Sec. 536. Comptroller General of the United States review of integrity
of Department of Defense whistleblower program.

Subtitle E--Military Justice and Legal Assistance Matters

Sec. 541. United States Court of Appeals for the Armed Forces.
Sec. 542. Effective prosecution and defense in courts-martial and pilot
programs on professional military justice development for
judge advocates.
Sec. 543. Inclusion in annual reports on sexual assault prevention and
response efforts of the Armed Forces of information on
complaints of retaliation in connection with reports of
sexual assault in the Armed Forces.
Sec. 544. Extension of the requirement for annual report regarding
sexual assaults and coordination with release of Family
Advocacy Program report.
Sec. 545. Metrics for evaluating the efforts of the Armed Forces to
prevent and respond to retaliation in connection with reports
of sexual assault in the Armed Forces.
Sec. 546. Training for Department of Defense personnel who investigate
claims of retaliation.
Sec. 547. Notification to complainants of resolution of investigations
into retaliation.
Sec. 548. Modification of definition of sexual harassment for purposes
of investigations by commanding officers of complaints of
harassment.
Sec. 549. Improved Department of Defense prevention of and response to
hazing in the Armed Forces.

Subtitle F--National Commission on Military, National, and Public
Service

Sec. 551. Purpose, scope, and definitions.
Sec. 552. Preliminary report on purpose and utility of registration
system under Military Selective Service Act.
Sec. 553. National Commission on Military, National, and Public Service.
Sec. 554. Commission hearings and meetings.
Sec. 555. Principles and procedure for Commission recommendations.
Sec. 556. Executive Director and staff.
Sec. 557. Termination of Commission.

Subtitle G--Member Education, Training, Resilience, and Transition

Sec. 561. Modification of program to assist members of the Armed Forces
in obtaining professional credentials.
Sec. 562. Inclusion of alcohol, prescription drug, opioid, and other
substance abuse counseling as part of required preseparation
counseling.
Sec. 563. Inclusion of information in Transition Assistance Program
regarding effect of receipt of both veteran disability
compensation and voluntary separation pay.
Sec. 564. Training under Transition Assistance Program on career and
employment opportunities associated with transportation
security cards.
Sec. 565. Extension of suicide prevention and resilience program.
Sec. 566. Congressional notification in advance of appointments to
service academies.
Sec. 567. Report and guidance on Job Training, Employment Skills
Training, Apprenticeships, and Internships and SkillBridge
initiatives for members of the Armed Forces who are being
separated.
Sec. 568. Military-to-mariner transition.

Subtitle H--Defense Dependents' Education and Military Family Readiness
Matters

Sec. 571. Continuation of authority to assist local educational agencies
that benefit dependents of members of the Armed Forces and
Department of Defense civilian employees.
Sec. 572. One-year extension of authorities relating to the transition
and support of military dependent students to local
educational agencies.
Sec. 573. Annual notice to members of the Armed Forces regarding child
custody protections guaranteed by the Servicemembers Civil
Relief Act.
Sec. 574. Requirement for annual Family Advocacy Program report
regarding child abuse and domestic violence.
Sec. 575. Reporting on allegations of child abuse in military families
and homes.
Sec. 576. Repeal of Advisory Council on Dependents' Education.
Sec. 577. Support for programs providing camp experience for children of
military families.
Sec. 578. Comptroller General of the United States assessment and report
on Exceptional Family Member Programs.
Sec. 579. Impact aid amendments.

Subtitle I--Decorations and Awards

Sec. 581. Posthumous advancement of Colonel George E. ``Bud'' Day,
United States Air Force, on the retired list.

[[Page 2005]]

Sec. 582. Authorization for award of medals for acts of valor during
certain contingency operations.
Sec. 583. Authorization for award of the Medal of Honor to Gary M. Rose
and James C. McCloughan for acts of valor during the Vietnam
War.
Sec. 584. Authorization for award of Distinguished-Service Cross to
First Lieutenant Melvin M. Spruiell for acts of valor during
World War II.
Sec. 585. Authorization for award of the Distinguished Service Cross to
Chaplain (First Lieutenant) Joseph Verbis LaFleur for acts of
valor during World War II.
Sec. 586. Review regarding award of Medal of Honor to certain Asian
American and Native American Pacific Islander war veterans.

Subtitle J--Miscellaneous Reports and Other Matters

Sec. 591. Repeal of requirement for a chaplain at the United States Air
Force Academy appointed by the President.
Sec. 592. Extension of limitation on reduction in number of military and
civilian personnel assigned to duty with service review
agencies.
Sec. 593. Annual reports on progress of the Army and the Marine Corps in
integrating women into military occupational specialities and
units recently opened to women.
Sec. 594. Report on feasability of electronic tracking of operational
active-duty service performed by members of the Ready Reserve
of the Armed Forces.
Sec. 595. Report on discharge by warrant officers of pilot and other
flight officer positions in the Navy, Marine Corps, and Air
Force currently discharged by commissioned officers.
Sec. 596. Body mass index test.
Sec. 597. Report on career progression tracks of the Armed Forces for
women in combat arms units.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2017 increase in military basic pay.
Sec. 602. Publication by Department of Defense of actual rates of basic
pay payable to members of the Armed Forces by pay grade for
annual or other pay periods.
Sec. 603. Extension of authority to provide temporary increase in rates
of basic allowance for housing under certain circumstances.
Sec. 604. Reports on a new single-salary pay system for members of the
Armed Forces.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay
authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay
authorities for health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for
nuclear officers.
Sec. 614. One-year extension of authorities relating to title 37
consolidated special pay, incentive pay, and bonus
authorities.
Sec. 615. One-year extension of authorities relating to payment of other
title 37 bonuses and special pays.
Sec. 616. Aviation incentive pay and bonus matters.
Sec. 617. Conforming amendment to consolidation of special pay,
incentive pay, and bonus authorities.
Sec. 618. Technical amendments relating to 2008 consolidation of certain
special pay authorities.

Subtitle C--Travel and Transportation Allowances

Sec. 621. Maximum reimbursement amount for travel expenses of members of
the Reserves attending inactive duty training outside of
normal commuting distances.

Subtitle D--Disability Pay, Retired Pay, and Survivor Benefits

Part I--Amendments in Connection With Retired Pay Reform

Sec. 631. Election period for members in the service academies and
inactive Reserves to participate in the modernized retirement
system.
Sec. 632. Effect of separation of members from the uniformed services on
participation in the Thrift Savings Plan.
Sec. 633. Continuation pay for full Thrift Savings Plan members who have
completed 8 to 12 years of service.

[[Page 2006]]

Sec. 634. Combat-related special compensation coordinating amendment.

Part II--Other Matters

Sec. 641. Use of member's current pay grade and years of service and
retired pay cost-of-living adjustments, rather than final
retirement pay grade and years of service, in a division of
property involving disposable retired pay.
Sec. 642. Equal benefits under Survivor Benefit Plan for survivors of
reserve component members who die in the line of duty during
inactive-duty training.
Sec. 643. Authority to deduct Survivor Benefit Plan premiums from
combat-related special compensation when retired pay not
sufficient.
Sec. 644. Extension of allowance covering monthly premium for
Servicemembers' Group Life Insurance while in certain
overseas areas to cover members in any combat zone or
overseas direct support area.
Sec. 645. Authority for payment of pay and allowances and retired and
retainer pay pursuant to power of attorney.
Sec. 646. Extension of authority to pay special survivor indemnity
allowance under the Survivor Benefit Plan.
Sec. 647. Repeal of obsolete authority for combat-related injury
rehabilitation pay.
Sec. 648. Independent assessment of the Survivor Benefit Plan.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits
and Operations

Sec. 661. Protection and enhancement of access to and savings at
commissaries and exchanges.
Sec. 662. Acceptance of Military Star Card at commissaries.

Subtitle F--Other Matters

Sec. 671. Recovery of amounts owed to the United States by members of
the uniformed services.
Sec. 672. Modification of flat rate per diem requirement for personnel
on long-term temporary duty assignments.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Reform of TRICARE and Military Health System

Sec. 701. TRICARE Select and other TRICARE reform.
Sec. 702. Reform of administration of the Defense Health Agency and
military medical treatment facilities.
Sec. 703. Military medical treatment facilities.
Sec. 704. Access to urgent and primary care under TRICARE program.
Sec. 705. Value-based purchasing and acquisition of managed care support
contracts for TRICARE program.
Sec. 706. Establishment of high performance military-civilian integrated
health delivery systems.
Sec. 707. Joint Trauma System.
Sec. 708. Joint Trauma Education and Training Directorate.
Sec. 709. Standardized system for scheduling medical appointments at
military treatment facilities.

Subtitle B--Other Health Care Benefits

Sec. 711. Extended TRICARE program coverage for certain members of the
National Guard and dependents during certain disaster
response duty.
Sec. 712. Continuity of health care coverage for Reserve Components.
Sec. 713. Provision of hearing aids to dependents of retired members.
Sec. 714. Coverage of medically necessary food and vitamins for certain
conditions under the TRICARE program.
Sec. 715. Eligibility of certain beneficiaries under the TRICARE program
for participation in the Federal Employees Dental and Vision
Insurance Program.
Sec. 716. Applied behavior analysis.
Sec. 717. Evaluation and treatment of veterans and civilians at military
treatment facilities.
Sec. 718. Enhancement of use of telehealth services in military health
system.
Sec. 719. Authorization of reimbursement by Department of Defense to
entities carrying out State vaccination programs for costs of
vaccines provided to covered beneficiaries.

Subtitle C--Health Care Administration

Sec. 721. Authority to convert military medical and dental positions to
civilian medical and dental positions.

[[Page 2007]]

Sec. 722. Prospective payment of funds necessary to provide medical care
for the Coast Guard.
Sec. 723. Reduction of administrative requirements relating to automatic
renewal of enrollments in TRICARE Prime.
Sec. 724. Modification of authority of Uniformed Services University of
the Health Sciences to include undergraduate and other
medical education and training programs.
Sec. 725. Adjustment of medical services, personnel authorized
strengths, and infrastructure in military health system to
maintain readiness and core competencies of health care
providers.
Sec. 726. Program to eliminate variability in health outcomes and
improve quality of health care services delivered in military
medical treatment facilities.
Sec. 727. Acquisition strategy for health care professional staffing
services.
Sec. 728. Adoption of core quality performance metrics.
Sec. 729. Improvement of health outcomes and control of costs of health
care under TRICARE program through programs to involve
covered beneficiaries.
Sec. 730. Accountability for the performance of the military health
system of certain leaders within the system.
Sec. 731. Establishment of advisory committees for military treatment
facilities.

Subtitle D--Reports and Other Matters

Sec. 741. Extension of authority for joint Department of Defense-
Department of Veterans Affairs Medical Facility Demonstration
Fund and report on implementation of information technology
capabilities.
Sec. 742. Pilot program on expansion of use of physician assistants to
provide mental health care to members of the Armed Forces.
Sec. 743. Pilot program for prescription drug acquisition cost parity in
the TRICARE pharmacy benefits program.
Sec. 744. Pilot program on display of wait times at urgent care clinics
and pharmacies of military medical treatment facilities.
Sec. 745. Requirement to review and monitor prescribing practices at
military treatment facilities of pharmaceutical agents for
treatment of post-traumatic stress.
Sec. 746. Department of Defense study on preventing the diversion of
opioid medications.
Sec. 747. Incorporation into survey by Department of Defense of
questions on experiences of members of the Armed Forces with
family planning services and counseling.
Sec. 748. Assessment of transition to TRICARE program by families of
members of reserve components called to active duty and
elimination of certain charges for such families.
Sec. 749. Oversight of graduate medical education programs of military
departments.
Sec. 750. Study on health of helicopter and tiltrotor pilots.
Sec. 751. Comptroller General reports on health care delivery and waste
in military health system.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Acquisition Policy and Management

Sec. 801. Rapid acquisition authority amendments.
Sec. 802. Authority for temporary service of Principal Military Deputies
to the Assistant Secretaries of the military departments for
acquisition as Acting Assistant Secretaries.
Sec. 803. Modernization of services acquisition.
Sec. 804. Defense Modernization Account amendments.

Subtitle B--Department of Defense Acquisition Agility

Sec. 805. Modular open system approach in development of major weapon
systems.
Sec. 806. Development, prototyping, and deployment of weapon system
components or technology.
Sec. 807. Cost, schedule, and performance of major defense acquisition
programs.
Sec. 808. Transparency in major defense acquisition programs.
Sec. 809. Amendments relating to technical data rights.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

Sec. 811. Modified restrictions on undefinitized contractual actions.
Sec. 812. Amendments relating to inventory and tracking of purchases of
services.

[[Page 2008]]

Sec. 813. Use of lowest price technically acceptable source selection
process.
Sec. 814. Procurement of personal protective equipment.
Sec. 815. Amendments related to detection and avoidance of counterfeit
electronic parts.
Sec. 816. Amendments to special emergency procurement authority.
Sec. 817. Compliance with domestic source requirements for footwear
furnished to enlisted members of the Armed Forces upon their
initial entry into the Armed Forces.
Sec. 818. Extension of authority for enhanced transfer of technology
developed at Department of Defense laboratories.
Sec. 819. Modified notification requirement for exercise of waiver
authority to acquire vital national security capabilities.
Sec. 820. Defense cost accounting standards.
Sec. 821. Increased micro-purchase threshold applicable to Department of
Defense procurements.
Sec. 822. Enhanced competition requirements.
Sec. 823. Revision to effective date of senior executive benchmark
compensation for allowable cost limitations.
Sec. 824. Treatment of independent research and development costs on
certain contracts.
Sec. 825. Exception to requirement to include cost or price to the
Government as a factor in the evaluation of proposals for
certain multiple-award task or delivery order contracts.
Sec. 826. Extension of program for comprehensive small business
contracting plans.
Sec. 827. Treatment of side-by-side testing of certain equipment,
munitions, and technologies manufactured and developed under
cooperative research and development agreements as use of
competitive procedures.
Sec. 828. Defense Acquisition Challenge Program amendments.
Sec. 829. Preference for fixed-price contracts.
Sec. 830. Requirement to use firm fixed-price contracts for foreign
military sales.
Sec. 831. Preference for performance-based contract payments.
Sec. 832. Contractor incentives to achieve savings and improve mission
performance.
Sec. 833. Sunset and repeal of certain contracting provisions.
Sec. 834. Flexibility in contracting award program.
Sec. 835. Protection of task order competition.
Sec. 836. Contract closeout authority.
Sec. 837. Closeout of old Department of the Navy contracts.

Subtitle D--Provisions Relating to Major Defense Acquisition Programs

Sec. 841. Change in date of submission to Congress of Selected
Acquisition Reports.
Sec. 842. Amendments relating to independent cost estimation and cost
analysis.
Sec. 843.  Revisions to Milestone B determinations.
Sec. 844. Review and report on sustainment planning in the acquisition
process.
Sec. 845. Revision to distribution of annual report on operational test
and evaluation.
Sec. 846. Repeal of major automated information systems provisions.
Sec. 847. Revisions to definition of major defense acquisition program.
Sec. 848. Acquisition strategy.
Sec. 849. Improved life-cycle cost control.
Sec. 850. Authority to designate increments or blocks of items delivered
under major defense acquisition programs as major subprograms
for purposes of acquisition reporting.
Sec. 851. Reporting of small business participation on Department of
Defense programs.
Sec. 852. Waiver of congressional notification for acquisition of
tactical missiles and munitions greater than quantity
specified in law.
Sec. 853. Multiple program multiyear contract pilot demonstration
program.
Sec. 854. Key performance parameter reduction pilot program.
Sec. 855. Mission integration management.

Subtitle E--Provisions Relating to Acquisition Workforce

Sec. 861. Project management.
Sec. 862. Authority to waive tenure requirement for program managers for
program definition and program execution periods.
Sec. 863. Purposes for which the Department of Defense Acquisition
Workforce Development Fund may be used; advisory panel
amendments.
Sec. 864. Department of Defense Acquisition Workforce Development Fund
determination adjustment.
Sec. 865. Limitations on funds used for staff augmentation contracts at
management headquarters of the Department of Defense and the
military departments.

[[Page 2009]]

Sec. 866. Senior Military Acquisition Advisors in the Defense
Acquisition Corps.
Sec. 867. Authority of the Secretary of Defense under the acquisition
demonstration project.

Subtitle F--Provisions Relating to Commercial Items

Sec. 871. Market research for determination of price reasonableness in
acquisition of commercial items.
Sec. 872. Value analysis for the determination of price reasonableness.
Sec. 873. Clarification of requirements relating to commercial item
determinations.
Sec. 874. Inapplicability of certain laws and regulations to the
acquisition of commercial items and commercially available
off-the-shelf items.
Sec. 875. Use of commercial or non-Government standards in lieu of
military specifications and standards.
Sec. 876. Preference for commercial services.
Sec. 877. Treatment of commingled items purchased by contractors as
commercial items.
Sec. 878. Treatment of services provided by nontraditional contractors
as commercial items.
Sec. 879. Defense pilot program for authority to acquire innovative
commercial items, technologies, and services using general
solicitation competitive procedures.
Sec. 880. Pilot programs for authority to acquire innovative commercial
items using general solicitation competitive procedures.

Subtitle G--Industrial Base Matters

Sec. 881. Greater integration of the national technology and industrial
base.
Sec. 882. Integration of civil and military roles in attaining national
technology and industrial base objectives.
Sec. 883. Pilot program for distribution support and services for weapon
systems contractors.
Sec. 884. Nontraditional and small contractor innovation prototyping
program.

Subtitle H--Other Matters

Sec. 885. Report on bid protests.
Sec. 886. Review and report on indefinite delivery contracts.
Sec. 887.  Review and report on contractual flow-down provisions.
Sec. 888. Requirement and review relating to use of brand names or
brand-name or equivalent descriptions in solicitations.
Sec. 889. Inclusion of information on common grounds for sustaining bid
protests in annual Government Accountability Office reports
to Congress.
Sec. 890. Study and report on contracts awarded to minority-owned and
women-owned businesses.
Sec. 891. Authority to provide reimbursable auditing services to certain
non-Defense Agencies.
Sec. 892. Selection of service providers for auditing services and audit
readiness services.
Sec. 893. Amendments to contractor business system requirements.
Sec. 894. Improved management practices to reduce cost and improve
performance of certain Department of Defense organizations.
Sec. 895. Exemption from requirement for capital planning and investment
control for information technology equipment included as
integral part of a weapon or weapon system.
Sec. 896. Modifications to pilot program for streamlining awards for
innovative technology projects.
Sec. 897. Rapid prototyping funds for the military departments.
Sec. 898. Establishment of Panel on Department of Defense and AbilityOne
Contracting Oversight, Accountability, and Integrity; Defense
Acquisition University training.
Sec. 899. Coast Guard major acquisition programs.
Sec. 899A. Enhanced authority to acquire products and services produced
in Africa in support of certain activities.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Office of the Secretary of Defense and Related Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Responsibilities and reporting of the Chief Information
Officer of the Department of Defense.
Sec. 903. Maximum number of personnel in the Office of the Secretary of
Defense and other Department of Defense headquarters offices.
Sec. 904. Repeal of Financial Management Modernization Executive
Committee.

[[Page 2010]]

Subtitle B--Organization and Management of the Department of Defense
Generally

Sec. 911. Organizational strategy for the Department of Defense.
Sec. 912. Policy, organization, and management goals and priorities of
the Secretary of Defense for the Department of Defense.
Sec. 913. Secretary of Defense delivery unit.
Sec. 914. Performance of civilian functions by military personnel.
Sec. 915. Repeal of requirements relating to efficiencies plan for the
civilian personnel workforce and service contractor workforce
of the Department of Defense.

Subtitle C--Joint Chiefs of Staff and Combatant Command Matters

Sec. 921. Joint Chiefs of Staff and related combatant command matters.
Sec. 922. Organization of the Department of Defense for management of
special operations forces and special operations.
Sec. 923. Establishment of unified combatant command for cyber
operations.
Sec. 924. Assigned forces of the combatant commands.
Sec. 925. Modifications to the requirements process.
Sec. 926. Review of combatant command organization.

Subtitle D--Organization and Management of Other Department of Defense
Offices and Elements

Sec. 931. Qualifications for appointment of the Secretaries of the
military departments.
Sec. 932. Enhanced personnel management authorities for the Chief of the
National Guard Bureau.
Sec. 933. Reorganization and redesignation of Office of Family Policy
and Office of Community Support for Military Families with
Special Needs.
Sec. 934. Redesignation of Assistant Secretary of the Air Force for
Acquisition as Assistant Secretary of the Air Force for
Acquisition, Technology, and Logistics.

Subtitle E--Strategies, Reports, and Related Matters

Sec. 941. National defense strategy.
Sec. 942. Commission on the National Defense Strategy for the United
States.
Sec. 943. Reform of the national military strategy.
Sec. 944. Form of annual national security strategy report.
Sec. 945. Modification to independent study of national security
strategy formulation process.

Subtitle F--Other Matters

Sec. 951. Enhanced security programs for Department of Defense personnel
and innovation initiatives.
Sec. 952. Modification of authority of the Secretary of Defense relating
to protection of the Pentagon Reservation and other
Department of Defense facilities in the National Capital
Region.
Sec. 953. Modifications to requirements for accounting for members of
the Armed Forces and Department of Defense civilian employees
listed as missing.
Sec. 954. Modifications to corrosion report.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Report on auditable financial statements.
Sec. 1003. Increased use of commercial data integration and analysis
products for the purpose of preparing financial statement
audits.
Sec. 1004. Sense of Congress on sequestration.
Sec. 1005. Requirement to transfer funds from Department of Defense
Acquisition Workforce Development Fund to the Treasury.

Subtitle B--Counterdrug Activities

Sec. 1011. Codification and modification of authority to provide support
for counterdrug activities and activities to counter
transnational organized crime of civilian law enforcement
agencies.
Sec. 1012. Secretary of Defense review of curricula and program
structures of National Guard counterdrug schools.
Sec. 1013. Extension of authority to support unified counterdrug and
counterterrorism campaign in Colombia.
Sec. 1014. Enhancement of information sharing and coordination of
military training between Department of Homeland Security and
Department of Defense.

[[Page 2011]]

Subtitle C--Naval Vessels and Shipyards

Sec. 1021. Definition of short-term work with respect to overhaul,
repair, or maintenance of naval vessels.
Sec. 1022. Warranty requirements for shipbuilding contracts.
Sec. 1023. National Sea-Based Deterrence Fund.
Sec. 1024. Availability of funds for retirement or inactivation of
Ticonderoga-class cruisers or dock landing ships.

Subtitle D--Counterterrorism

Sec. 1031. Frequency of counterterrorism operations briefings.
Sec. 1032. Prohibition on use of funds for transfer or release of
individuals detained at United States Naval Station,
Guantanamo Bay, Cub, to the United States.
Sec. 1033. Prohibition on use of funds to construct or modify facilities
in the United States to house detainees transferred from
United States Naval Station, Guantanamo Bay, Cuba.
Sec. 1034. Prohibition on use of funds for transfer or release to
certain countries of individuals detained at United States
Naval Station, Guantanamo Bay, Cuba.
Sec. 1035. Prohibition on use of funds for realignment of forces at or
closure of United States Naval Station, Guantanamo Bay, Cuba.
Sec. 1036. Congressional notification requirements for sensitive
military operations.

Subtitle E--Miscellaneous Authorities and Limitations

Sec. 1041. Expanded authority for transportation by the Department of
Defense of non-Department of Defense personnel and cargo.
Sec. 1042. Reduction in minimum number of Navy carrier air wings and
carrier air wing headquarters required to be maintained.
Sec. 1043. Modification to support for non-Federal development and
testing of material for chemical agent defense.
Sec. 1044. Protection of certain Federal spectrum operations.
Sec. 1045. Prohibition on use of funds for retirement of legacy maritime
mine countermeasures platforms.
Sec. 1046. Extension of authority of Secretary of Transportation to
issue non-premium aviation insurance.
Sec. 1047. Evaluation of Navy alternate combination cover and unisex
combination cover.
Sec. 1048. Independent evaluation of Department of Defense excess
property program.
Sec. 1049. Waiver of certain polygraph examination requirements.
Sec. 1050. Use of Transportation Worker Identification Credential to
gain access at Department of Defense installations.
Sec. 1051. Limitation on availability of funds for destruction of
certain landmines and briefing on development of replacement
anti-personnel landmine munitions.
Sec. 1052. Transition of Air Force to operation of remotely piloted
aircraft by enlisted personnel.
Sec. 1053. Prohibition on divestment of Marine Corps Search and Rescue
Units.
Sec. 1054. Support for the Associate Director of the Central
Intelligence Agency for Military Affairs.
Sec. 1055. Notification on the provision of defense sensitive support.
Sec. 1056. Prohibition on enforcement of military commission rulings
preventing members of the Armed Forces from carrying out
otherwise lawful duties based on member sex.

Subtitle F--Studies and Reports

Sec. 1061. Temporary continuation of certain Department of Defense
reporting requirements.
Sec. 1062. Reports on programs managed under alternative compensatory
control measures in the Department of Defense.
Sec. 1063. Matters for inclusion in report on designation of countries
for which rewards may be paid under Department of Defense
rewards program.
Sec. 1064. Annual reports on unfunded priorities of the Armed Forces and
the combatant commands and annual report on combatant command
requirements.
Sec. 1065. Management and reviews of electromagnetic spectrum.
Sec. 1066. Requirement for notice and reporting to Committees on Armed
Services on certain expenditures of funds by Defense
Intelligence Agency.
Sec. 1067. Congressional notification of biological select agent and
toxin theft, loss, or release involving the Department of
Defense.

[[Page 2012]]

Sec. 1068. Report on service-provided support and enabling capabilities
to United States special operations forces.
Sec. 1069. Report on citizen security responsibilities in the Northern
Triangle of Central America.
Sec. 1070. Report on counterproliferation activities and programs.
Sec. 1071. Report on testing and integration of minehunting sonar
systems to improve Littoral Combat Ship minehunting
capabilities.
Sec. 1072. Quarterly reports on parachute jumps conducted at Fort Bragg
and Pope Army Airfield and Air Force support for such jumps.
Sec. 1073. Study on military helicopter noise.
Sec. 1074. Independent review of United States military strategy and
force posture in the United States Pacific Command area of
responsibility.
Sec. 1075. Assessment of the joint ground forces of the Armed Forces.

Subtitle G--Other Matters

Sec. 1081. Technical and clerical amendments.
Sec. 1082. Increase in maximum amount available for equipment, services,
and supplies provided for humanitarian demining assistance.
Sec. 1083. Liquidation of unpaid credits accrued as a result of
transactions under a cross-servicing agreement.
Sec. 1084. Modification of requirements relating to management of
military technicians.
Sec. 1085. Streamlining of the National Security Council.
Sec. 1086. National biodefense strategy.
Sec. 1087. Global Cultural Knowledge Network.
Sec. 1088. Sense of Congress regarding Connecticut's Submarine Century.
Sec. 1089. Sense of Congress regarding the reporting of the MV-22 mishap
in Marana, Arizona, on April 8, 2000.
Sec. 1090. Cost of Wars.
Sec. 1091. Reconnaissance Strike Group matters.
Sec. 1092. Border security metrics.
Sec. 1093. Program to commemorate the 100th anniversary of the Tomb of
the Unknown Soldier.
Sec. 1094. Sense of Congress regarding the OCONUS basing of the KC-46A
aircraft.
Sec. 1095. Designation of a Department of Defense Strategic Arctic Port.
Sec. 1096. Recovery of excess rifles, ammunition, and parts granted to
foreign countries and transfer to certain persons.

TITLE XI--CIVILIAN PERSONNEL MATTERS

Subtitle A--Department of Defense Matters Generally

Sec. 1101. Civilian personnel management.
Sec. 1102. Repeal of requirement for annual strategic workforce plan for
the Department of Defense.
Sec. 1103. Training for employment personnel of Department of Defense on
matters relating to authorities for recruitment and retention
at United States Cyber Command.
Sec. 1104. Public-private talent exchange.
Sec. 1105. Temporary and term appointments in the competitive service in
the Department of Defense.
Sec. 1106. Direct-hire authority for the Department of Defense for post-
secondary students and recent graduates.
Sec. 1107. Temporary increase in maximum amount of voluntary separation
incentive pay authorized for civilian employees of the
Department of Defense.
Sec. 1108. Extension of rate of overtime pay for Department of the Navy
employees performing work aboard or dockside in support of
the nuclear-powered aircraft carrier forward deployed in
Japan.
Sec. 1109. Limitation on number of DOD SES positions.
Sec. 1110. Direct hire authority for financial management experts in the
Department of Defense workforce.
Sec. 1111. Repeal of certain basis for appointment of a retired member
of the Armed Forces to Department of Defense position within
180 days of retirement.

Subtitle B--Department of Defense Science and Technology Laboratories
and Related Matters

Sec. 1121. Permanent personnel management authority for the Department
of Defense for experts in science and engineering.
Sec. 1122. Codification and modification of certain authorities for
certain positions at Department of Defense research and
engineering laboratories.

[[Page 2013]]

Sec. 1123. Modification to information technology personnel exchange
program.
Sec. 1124. Pilot program on enhanced pay authority for certain research
and technology positions in the science and technology
reinvention laboratories of the Department of Defense.
Sec. 1125. Temporary direct hire authority for domestic defense
industrial base facilities, the Major Range and Test
Facilities Base, and the Office of the Director of
Operational Test and Evaluation.

Subtitle C--Governmentwide Matters

Sec. 1131. Elimination of two-year eligibility limitation for
noncompetitive appointment of spouses of members of the Armed
Forces.
Sec. 1132. Temporary personnel flexibilities for domestic defense
industrial base facilities and Major Range and Test
Facilities Base civilian personnel.
Sec. 1133. One-year extension of temporary authority to grant
allowances, benefits, and gratuities to civilian personnel on
official duty in a combat zone.
Sec. 1134. Advance payments for employees relocating within the United
States and its territories.
Sec. 1135. Eligibility of employees in a time-limited appointment to
compete for a permanent appointment at any Federal agency.
Sec. 1136.  Review of official personnel file of former Federal
employees before rehiring.
Sec. 1137. One-year extension of authority to waive annual limitation on
premium pay and aggregate limitation on pay for Federal
civilian employees working overseas.
Sec. 1138. Administrative leave.
Sec. 1139. Direct hiring for Federal wage schedule employees.
Sec. 1140. Record of investigation of personnel action in separated
employee's official personnel file.

TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

Subtitle A--Assistance and Training

Sec. 1201. One-year extension of logistical support for coalition forces
supporting certain United States military operations.
Sec. 1202. Special Defense Acquisition Fund matters.
Sec. 1203. Codification of authority for support of special operations
to combat terrorism.
Sec. 1204. Independent evaluation of strategic framework for Department
of Defense security cooperation.
Sec. 1205. Sense of Congress regarding an assessment, monitoring, and
evaluation framework for security cooperation.

Subtitle B--Matters Relating to Afghanistan and Pakistan

Sec. 1211. Extension and modification of Commanders' Emergency Response
Program.
Sec. 1212. Extension of authority to acquire products and services
produced in countries along a major route of supply to
Afghanistan.
Sec. 1213. Extension and modification of authority to transfer defense
articles and provide defense services to the military and
security forces of Afghanistan.
Sec. 1214. Special immigrant status for certain Afghans.
Sec. 1215. Modification to semiannual report on enhancing security and
stability in Afghanistan.
Sec. 1216. Prohibition on use of funds for certain programs and projects
of the Department of Defense in Afghanistan that cannot be
safely accessed by United States Government personnel.
Sec. 1217. Improvement of oversight of United States Government efforts
in Afghanistan.
Sec. 1218. Extension and modification of authority for reimbursement of
certain coalition nations for support provided to United
States military operations.

Subtitle C--Matters Relating to Syria, Iraq, and Iran

Sec. 1221. Modification and extension of authority to provide assistance
to the vetted Syrian opposition.
Sec. 1222. Modification and extension of authority to provide assistance
to counter the Islamic State of Iraq and the Levant.
Sec. 1223. Extension and modification of authority to support operations
and activities of the Office of Security Cooperation in Iraq.
Sec. 1224. Limitation on provision of man-portable air defense systems
to the vetted Syrian opposition during fiscal year 2017.

[[Page 2014]]

Sec. 1225. Modification of annual report on military power of Iran.
Sec. 1226. Quarterly report on confirmed ballistic missile launches from
Iran.

Subtitle D--Matters Relating to the Russian Federation

Sec. 1231. Military response options to Russian Federation violation of
INF Treaty.
Sec. 1232. Limitation on military cooperation between the United States
and the Russian Federation.
Sec. 1233. Extension and modification of authority on training for
Eastern European national military forces in the course of
multilateral exercises.
Sec. 1234. Prohibition on availability of funds relating to sovereignty
of the Russian Federation over Crimea.
Sec. 1235. Annual report on military and security developments involving
the Russian Federation.
Sec. 1236. Limitation on use of funds to vote to approve or otherwise
adopt any implementing decision of the Open Skies
Consultative Commission and related requirements.
Sec. 1237. Extension and enhancement of Ukraine Security Assistance
Initiative.
Sec. 1238. Reports on INF Treaty and Open Skies Treaty.

Subtitle E--Reform of Department of Defense Security Cooperation

Sec. 1241. Enactment of new chapter for defense security cooperation.
Sec. 1242. Military-to-military exchanges.
Sec. 1243. Consolidation and revision of authorities for payment of
personnel expenses necessary for theater security
cooperation.
Sec. 1244. Transfer and revision of certain authorities on payment of
expenses of training and exercises with friendly foreign
forces.
Sec. 1245. Transfer and revision of authority to provide operational
support to forces of friendly foreign countries.
Sec. 1246. Department of Defense State Partnership Program.
Sec. 1247. Transfer of authority on Regional Defense Combating Terrorism
Fellowship Program.
Sec. 1248. Consolidation of authorities for service academy
international engagement.
Sec. 1249. Consolidated annual budget for security cooperation programs
and activities of the Department of Defense.
Sec. 1250. Department of Defense security cooperation workforce
development.
Sec. 1251. Reporting requirements.
Sec. 1252. Quadrennial review of security sector assistance programs and
authorities of the United States Government.
Sec. 1253. Other conforming amendments and authority for administration.

Subtitle F--Human Rights Sanctions

Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Authorization of imposition of sanctions.
Sec. 1264. Reports to Congress.
Sec. 1265. Sunset.

Subtitle G--Miscellaneous Reports

Sec. 1271. Modification of annual report on military and security
developments involving the People's Republic of China.
Sec. 1272. Monitoring and evaluation of overseas humanitarian, disaster,
and civic aid programs of the Department of Defense.
Sec. 1273. Strategy for United States defense interests in Africa.
Sec. 1274. Report on the potential for cooperation between the United
States and Israel on directed energy capabilities.
Sec. 1275. Annual update of Department of Defense Freedom of Navigation
Report.
Sec. 1276. Assessment of proliferation of certain remotely piloted
aircraft systems.

Subtitle H--Other Matters

Sec. 1281. Enhancement of interagency support during contingency
operations and transition periods.
Sec. 1282. Two-year extension and modification of authorization of non-
conventional assisted recovery capabilities.
Sec. 1283. Authority to destroy certain specified World War II-era
United States-origin chemical munitions located on San Jose
Island, Republic of Panama.
Sec. 1284. Sense of Congress on military exchanges between the United
States and Taiwan.
Sec. 1285. Limitation on availability of funds to implement the Arms
Trade Treaty.

[[Page 2015]]

Sec. 1286. Prohibition on use of funds to invite, assist, or otherwise
assure the participation of Cuba in certain joint or
multilateral exercises.
Sec. 1287. Global Engagement Center.
Sec. 1288. Modification of United States International Broadcasting Act
of 1994.
Sec. 1289. Redesignation of South China Sea Initiative.
Sec. 1290. Measures against persons involved in activities that violate
arms control treaties or agreements with the United States.
Sec. 1291. Agreements with foreign governments to develop land-based
water resources in support of and in preparation for
contingency operations.
Sec. 1292. Enhancing defense and security cooperation with India.
Sec. 1293. Coordination of efforts to develop free trade agreements with
sub-Saharan African countries.
Sec. 1294. Extension and expansion of authority to support border
security operations of certain foreign countries.
Sec. 1295. Modification and clarification of United States-Israel anti-
tunnel cooperation authority.
Sec. 1296. Maintenance of prohibition on procurement by Department of
Defense of People's Republic of China-origin items that meet
the definition of goods and services controlled as munitions
items when moved to the ``600 series'' of the Commerce
Control List.
Sec. 1297. International sales process improvements.
Sec. 1298. Efforts to end modern slavery.

TITLE XIII--COOPERATIVE THREAT REDUCTION

Sec. 1301. Specification of Cooperative Threat Reduction funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on availability of funds for Cooperative Threat
Reduction in People's Republic of China.

TITLE XIV--OTHER AUTHORIZATIONS

Subtitle A--Military Programs

Sec. 1401. Working capital funds.
Sec. 1402. Chemical Agents and Munitions Destruction, Defense.
Sec. 1403. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1404. Defense Inspector General.
Sec. 1405. Defense Health Program.

Subtitle B--National Defense Stockpile

Sec. 1411. Authority to dispose of certain materials from and to acquire
additional materials for the National Defense Stockpile.
Sec. 1412. National Defense Stockpile matters.

Subtitle C--Chemical Demilitarization Matters

Sec. 1421. National Academies of Sciences study on conventional
munitions demilitarization alternative technologies.

Subtitle D--Other Matters

Sec. 1431. Authority for transfer of funds to joint Department of
Defense-Department of Veterans Affairs Medical Facility
Demonstration Fund for Captain James A. Lovell Health Care
Center, Illinois.
Sec. 1432. Authorization of appropriations for Armed Forces Retirement
Home.

TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OVERSEAS
CONTINGENCY OPERATIONS

Subtitle A--Authorization of Appropriations

Sec. 1501. Purpose and treatment of certain authorizations of
appropriations.
Sec. 1502. Procurement.
Sec. 1503. Research, development, test, and evaluation.
Sec. 1504. Operation and maintenance.
Sec. 1505. Military personnel.
Sec. 1506. Working capital funds.
Sec. 1507. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1508. Defense Inspector General.
Sec. 1509. Defense Health program.

Subtitle B--Financial Matters

Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Special transfer authority.

[[Page 2016]]

Subtitle C--Limitations, Reports, and Other Matters

Sec. 1521. Afghanistan Security Forces Fund.
Sec. 1522. Joint Improvised Explosive Device Defeat Fund.
Sec. 1523. Extension of authority to use Joint Improvised Explosive
Device Defeat Fund for training of foreign security forces to
defeat improvised explosive devices.
Sec. 1524. Overseas contingency operations.
Sec. 1525. Extension and modification of authorities on Counterterrorism
Partnerships Fund.

TITLE XVI--STRATEGIC PROGRAMS, CYBER, AND INTELLIGENCE MATTERS

Subtitle A--Space Activities

Sec. 1601. Repeal of provision permitting the use of rocket engines from
the Russian Federation for the evolved expendable launch
vehicle program.
Sec. 1602. Exception to the prohibition on contracting with Russian
suppliers of rocket engines for the evolved expendable launch
vehicle program.
Sec. 1603. Rocket propulsion system to replace RD-180.
Sec. 1604. Plan for use of allied launch vehicles.
Sec. 1605. Analysis of alternatives for wide-band communications.
Sec. 1606. Modification of pilot program for acquisition of commercial
satellite communication services.
Sec. 1607. Space-based environmental monitoring.
Sec. 1608. Prohibition on use of certain non-allied positioning,
navigation, and timing systems.
Sec. 1609. Limitation of availability of funds for the Joint Space
Operations Center Mission System.
Sec. 1610. Limitations on availability of funds for the Global
Positioning System Next Generation Operational Control
System.
Sec. 1611. Availability of funds for certain secure voice conferencing
capabilities.
Sec. 1612. Space-based infrared system and advanced extremely high
frequency program.
Sec. 1613. Pilot program on commercial weather data.
Sec. 1614. Plans on transfer of acquisition and funding authority of
certain weather missions to National Reconnaissance Office.
Sec. 1615. Five-year plan for Joint Interagency Combined Space
Operations Center.
Sec. 1616. Organization and management of national security space
activities of the Department of Defense.
Sec. 1617. Review of charter of Operationally Responsive Space Program
Office.
Sec. 1618. Backup and complementary positioning, navigation, and timing
capabilities of Global Positioning System.
Sec. 1619. Report on use of spacecraft assets of the space-based
infrared system wide-field-of-view program.
Sec. 1620. Provision of certain information to Government Accountability
Office by National Reconnaissance Office.
Sec. 1621. Cost-benefit analysis of commercial use of excess ballistic
missile solid rocket motors.
Sec. 1622. Independent assessment of Global Positioning System Next
Generation Operational Control System.

Subtitle B--Defense Intelligence and Intelligence-Related Activities

Sec. 1631. Report on United States Central Command Intelligence Fusion
Center.
Sec. 1632. Prohibition on availability of funds for certain relocation
activities for NATO Intelligence Fusion Cell.
Sec. 1633. Survey and review of Defense Intelligence Enterprise.

Subtitle C--Cyberspace-Related Matters

Sec. 1641. Special emergency procurement authority to facilitate the
defense against or recovery from a cyber attack.
Sec. 1642. Limitation on termination of dual-hat arrangement for
Commander of the United States Cyber Command.
Sec. 1643. Cyber mission forces matters.
Sec. 1644. Requirement to enter into agreements relating to use of cyber
opposition forces.
Sec. 1645. Cyber protection support for Department of Defense personnel
in positions highly vulnerable to cyber attack.
Sec. 1646. Limitation on full deployment of joint regional security
stacks.
Sec. 1647. Advisory committee on industrial security and industrial base
policy.
Sec. 1648. Change in name of National Defense University's Information
Resources Management College to College of Information and
Cyberspace.
Sec. 1649. Evaluation of cyber vulnerabilities of F-35 aircraft and
support systems.

[[Page 2017]]

Sec. 1650. Evaluation of cyber vulnerabilities of Department of Defense
critical infrastructure.
Sec. 1651. Strategy to incorporate Army reserve component cyber
protection teams into Department of Defense cyber mission
force.
Sec. 1652. Strategic Plan for the Defense Information Systems Agency.
Sec. 1653. Plan for information security continuous monitoring
capability and comply-to-connect policy; limitation on
software licensing.
Sec. 1654. Reports on deterrence of adversaries in cyberspace.
Sec. 1655. Sense of Congress on cyber resiliency of the networks and
communications systems of the National Guard.

Subtitle D--Nuclear Forces

Sec. 1661. Improvements to Council on Oversight of National Leadership
Command, Control, and Communications System.
Sec. 1662. Treatment of certain sensitive information by State and local
governments.
Sec. 1663. Procurement authority for certain parts of intercontinental
ballistic missile fuzes.
Sec. 1664. Prohibition on availability of funds for mobile variant of
ground-based strategic deterrent missile.
Sec. 1665. Limitation on availability of funds for extension of New
START Treaty.
Sec. 1666. Certifications regarding integrated tactical warning and
attack assessment mission of the Air Force.
Sec. 1667. Matters relating to intercontinental ballistic missiles.
Sec. 1668. Requests for forces to meet security requirements for land-
based nuclear forces.
Sec. 1669. Report on Russian and Chinese political and military
leadership survivability, command and control, and continuity
of government programs and activities.
Sec. 1670. Review by Comptroller General of the United States of
recommendations relating to nuclear enterprise of Department
of Defense.
Sec. 1671. Sense of Congress on nuclear deterrence.
Sec. 1672. Sense of Congress on importance of independent nuclear
deterrent of United Kingdom.

Subtitle E--Missile Defense Programs

Sec. 1681. National missile defense policy.
Sec. 1682. Extensions of prohibitions relating to missile defense
information and systems.
Sec. 1683. Non-terrestrial missile defense intercept and defeat
capability for the ballistic missile defense system.
Sec. 1684. Review of the missile defeat policy and strategy of the
United States.
Sec. 1685. Maximizing Aegis Ashore capability and developing medium
range discrimination radar.
Sec. 1686. Technical authority for integrated air and missile defense
activities and programs.
Sec. 1687. Hypersonic defense capability development.
Sec. 1688. Conventional Prompt Global Strike weapons system.
Sec. 1689. Required testing by Missile Defense Agency of ground-based
midcourse defense element of ballistic missile defense
system.
Sec. 1690. Iron Dome short-range rocket defense system and Israeli
cooperative missile defense program codevelopment and
coproduction.
Sec. 1691. Limitations on availability of funds for lower tier air and
missile defense capability of the Army.
Sec. 1692. Pilot program on loss of unclassified, controlled technical
information.
Sec. 1693. Plan for procurement of medium-range discrimination radar to
improve homeland missile defense.
Sec. 1694. Review of Missile Defense Agency budget submissions for
ground-based midcourse defense and evaluation of alternative
ground-based interceptor deployments.
Sec. 1695. Semiannual notifications on missile defense tests and costs.
Sec. 1696. Reports on unfunded priorities of the Missile Defense Agency.

Subtitle F--Other Matters

Sec. 1697. Protection of certain facilities and assets from unmanned
aircraft.
Sec. 1698. Harmful interference to Department of Defense Global
Positioning System.

TITLE XVII--GUAM WORLD WAR II LOYALTY RECOGNITION ACT

Sec. 1701. Short title.
Sec. 1702. Recognition of the suffering and loyalty of the residents of
Guam.

[[Page 2018]]

Sec. 1703. Guam World War II Claims Fund.
Sec. 1704. Payments for Guam World War II claims.
Sec. 1705. Adjudication.
Sec. 1706. Grants program to memorialize the occupation of Guam during
World War II.
Sec. 1707. Authorization of appropriations.

TITLE XVIII--MATTERS RELATING TO SMALL BUSINESS PROCUREMENT

Subtitle A--Improving Transparency and Clarity for Small Businesses

Sec. 1801. Plain language rewrite of requirements for small business
procurements.
Sec. 1802. Transparency in small business goals.

Subtitle B--Clarifying the Roles of Small Business Advocates

Sec. 1811. Scope of review by procurement center representatives.
Sec. 1812. Duties of the Office of Small and Disadvantaged Business
Utilization.
Sec. 1813. Improving contractor compliance.
Sec. 1814. Improving education on small business regulations.

Subtitle C--Strengthening Opportunities for Competition in
Subcontracting

Sec. 1821. Good faith in subcontracting.
Sec. 1822. Pilot program to provide opportunities for qualified
subcontractors to obtain past performance ratings.
Sec. 1823. Amendments to the Mentor-Protege Program of the Department of
Defense.

Subtitle D--Miscellaneous Provisions

Sec. 1831. Improvements to size standards for small agricultural
producers.
Sec. 1832. Uniformity in service-disabled veteran definitions.
Sec. 1833. Office of Hearings and Appeals.
Sec. 1834. Extension of SBIR and STTR programs.
Sec. 1835. Issuance of guidance on small business matters.

Subtitle E--Improving Cyber Preparedness for Small Businesses

Sec. 1841. Small Business Development Center Cyber Strategy and
outreach.
Sec. 1842. Role of small business development centers in cybersecurity
and preparedness.
Sec. 1843. Additional cybersecurity assistance for small business
development centers.
Sec. 1844. Prohibition on additional funds.

TITLE XIX--DEPARTMENT OF HOMELAND SECURITY COORDINATION

Sec. 1901. Department of Homeland Security coordination.
Sec. 1902. Office of Strategy, Policy, and Plans of the Department of
Homeland Security.
Sec. 1903. Management and execution.
Sec. 1904. Chief Human Capital Officer of the Department of Homeland
Security.
Sec. 1905. Department of Homeland Security transparency.
Sec. 1906. Transparency in research and development.
Sec. 1907. United States Government review of certain foreign fighters.
Sec. 1908. National strategy to combat terrorist travel.
Sec. 1909. National Operations Center.
Sec. 1910. Department of Homeland Security strategy for international
programs.
Sec. 1911. State and high-risk urban area working groups.
Sec. 1912. Cybersecurity strategy for the Department of Homeland
Security.
Sec. 1913. EMP and GMD planning, research and development, and
protection and preparedness.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
Sec. 2002. Expiration of authorizations and amounts required to be
specified by law.
Sec. 2003. Effective date.

TITLE XXI--ARMY MILITARY CONSTRUCTION

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Authorization of appropriations, Army.
Sec. 2104. Modification of authority to carry out certain fiscal year
2014 project.
Sec. 2105. Extension of authorizations of certain fiscal year 2013
projects.

[[Page 2019]]

Sec. 2106. Extension of authorizations of certain fiscal year 2014
projects.

TITLE XXII--NAVY MILITARY CONSTRUCTION

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year
2014 project.
Sec. 2206. Extension of authorizations of certain fiscal year 2013
projects.
Sec. 2207. Extension of authorizations of certain fiscal year 2014
projects.
Sec. 2208. Status of ``net negative'' policy regarding Navy acreage on
Guam.

TITLE XXIII--AIR FORCE MILITARY CONSTRUCTION

Sec. 2301. Authorized Air Force construction and land acquisition
projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year
2016 project.
Sec. 2306. Extension of authorization of certain fiscal year 2013
project.
Sec. 2307. Extension of authorization of certain fiscal year 2014
project.
Sec. 2308. Restriction on acquisition of property in Northern Mariana
Islands.

TITLE XXIV--DEFENSE AGENCIES MILITARY CONSTRUCTION

Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Authorized energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Modification of authority to carry out certain fiscal year
2014 project.
Sec. 2405. Extension of authorizations of certain fiscal year 2013
projects.
Sec. 2406. Extension of authorizations of certain fiscal year 2014
projects.

TITLE XXV--INTERNATIONAL PROGRAMS

Subtitle A--North Atlantic Treaty Organization Security Investment
Program

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

Subtitle B--Host Country In-Kind Contributions

Sec. 2511. Republic of Korea funded construction projects.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Subtitle A--Project Authorizations and Authorization of Appropriations

Sec. 2601. Authorized Army National Guard construction and land
acquisition projects.
Sec. 2602. Authorized Army Reserve construction and land acquisition
projects.
Sec. 2603. Authorized Navy Reserve and Marine Corps Reserve construction
and land acquisition projects.
Sec. 2604. Authorized Air National Guard construction and land
acquisition projects.
Sec. 2605. Authorized Air Force Reserve construction and land
acquisition projects.
Sec. 2606. Authorization of appropriations, National Guard and Reserve.

Subtitle B--Other Matters

Sec. 2611. Modification of authority to carry out certain fiscal year
2014 project.
Sec. 2612. Modification of authority to carry out certain fiscal year
2015 project.
Sec. 2613. Modification of authority to carry out certain fiscal year
2016 project.
Sec. 2614. Extension of authorization of certain fiscal year 2013
project.
Sec. 2615. Extension of authorizations of certain fiscal year 2014
projects.

TITLE XXVII--BASE REALIGNMENT AND CLOSURE ACTIVITIES

Sec. 2701. Extension of authorizations of certain fiscal year 2014
projects.
Sec. 2702. Prohibition on conducting additional Base Realignment and
Closure (BRAC) round.

TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing

Sec. 2801. Modification of criteria for treatment of laboratory
revitalization projects as minor military construction
projects.
Sec. 2802. Classification of facility conversion projects as repair
projects.

[[Page 2020]]

Sec. 2803. Limited authority for scope of work increase.
Sec. 2804. Extension of temporary, limited authority to use operation
and maintenance funds for construction projects outside the
United States.
Sec. 2805. Authority to expand energy conservation construction program
to include energy resiliency projects.
Sec. 2806. Additional entities eligible for participation in defense
laboratory modernization pilot program.
Sec. 2807. Extension of temporary authority for acceptance and use of
contributions for certain construction, maintenance, and
repair projects mutually beneficial to the Department of
Defense and Kuwait military forces.

Subtitle B--Real Property and Facilities Administration

Sec. 2811. Acceptance of military construction projects as payments in-
kind and in-kind contributions.
Sec. 2812. Allotment of space and provision of services to WIC offices
operating on military installations.
Sec. 2813. Sense of Congress regarding inclusion of stormwater systems
and components within the meaning of ``wastewater system''
under the Department of Defense authority for conveyance of
utility systems.
Sec. 2814. Assessment of public schools on Department of Defense
installations.
Sec. 2815. Prior certification required for use of Department of Defense
facilities by other Federal agencies for temporary housing
support.

Subtitle C--Land Conveyances

Sec. 2821. Land conveyance, High Frequency Active Auroral Research
Program facility and adjacent property, Gakona, Alaska.
Sec. 2822. Land conveyance, Campion Air Force Radar Station, Galena,
Alaska.
Sec. 2823. Lease, Joint Base Elmendorf-Richardson, Alaska.
Sec. 2824. Transfer of administrative jurisdictions, Navajo Army Depot,
Arizona.
Sec. 2825. Exchange of property interests, San Diego Unified Port
District, California.
Sec. 2826. Release of property interests retained in connection with
land conveyance, Eglin Air Force Base, Florida.
Sec. 2827. Land exchange, Fort Hood, Texas.
Sec. 2828. Land Conveyance, P-36 Warehouse, Colbern United States Army
Reserve Center, Laredo, Texas.
Sec. 2829. Land conveyance, St. George National Guard Armory, St.
George, Utah.
Sec. 2829A. Land acquisitions, Arlington County, Virginia.
Sec. 2829B. Release of restrictions, Richland Innovation Center,
Richland, Washington.
Sec. 2829C. Modification of land conveyance, Rocky Mountain Arsenal
National Wildlife Refuge.
Sec. 2829D. Closure of St. Marys Airport.
Sec. 2829E. Transfer of Fort Belvoir Mark Center Campus from the
Secretary of the Army to the Secretary of Defense and
applicability of certain provisions of law relating to the
Pentagon Reservation.
Sec. 2829F. Return of certain lands at Fort Wingate, New Mexico, to the
original inhabitants.

Subtitle D--Military Memorials, Monuments, and Museums

Sec. 2831. Cyber Center for Education and Innovation-Home of the
National Cryptologic Museum.
Sec. 2832. Renaming site of the Dayton Aviation Heritage National
Historical Park, Ohio.
Sec. 2833. Women's military service memorials and museums.
Sec. 2834. Petersburg National Battlefield boundary modification.

Subtitle E--Designations and Other Matters

Sec. 2841. Designation of portion of Moffett Federal Airfield,
California, as Moffett Air National Guard Base.
Sec. 2842. Redesignation of Mike O'Callaghan Federal Medical Center.
Sec. 2843. Replenishment of Sierra Vista subwatershed regional aquifer,
Arizona.
Sec. 2844. Limited exceptions to restriction on development of public
infrastructure in connection with realignment of Marine Corps
forces in Asia-Pacific region.
Sec. 2845. Duration of withdrawal and reservation of public land, Naval
Air Weapons Station China Lake, California.

TITLE XXIX--OVERSEAS CONTINGENCY OPERATIONS MILITARY CONSTRUCTION

Sec. 2901. Authorized Navy construction and land acquisition projects.

[[Page 2021]]

Sec. 2902. Authorized Air Force construction and land acquisition
projects.
Sec. 2903. Authorization of appropriations.

TITLE XXX--UTAH TEST AND TRAINING RANGE AND RELATED MATTERS

Subtitle A--Authorization for Temporary Closure of Certain Public Land
Adjacent to the Utah Test and Training Range

Sec. 3001. Definitions.
Sec. 3002. Memorandum of agreement.
Sec. 3003. Temporary closures.
Sec. 3004. Liability.
Sec. 3005. Community resource advisory group.
Sec. 3006. Savings clauses.

Subtitle B--Bureau of Land Management Land Exchange With State of Utah

Sec. 3011. Definitions.
Sec. 3012. Exchange of Federal land and non-Federal land.
Sec. 3013. Status and management of non-Federal land acquired by the
United States.
Sec. 3014. Hazardous substances.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs and Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Nuclear energy.

Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Independent acquisition project reviews of capital assets
acquisition projects.
Sec. 3112. Protection of certain nuclear facilities and assets from
unmanned aircraft.
Sec. 3113. Common financial reporting system for the nuclear security
enterprise.
Sec. 3114. Rough estimate of total life cycle cost of tank waste cleanup
at Hanford Nuclear Reservation.
Sec. 3115. Annual certification of shipments to Waste Isolation Pilot
Plant.
Sec. 3116. Disposition of weapons-usable plutonium.
Sec. 3117. Design basis threat.
Sec. 3118. Industry best practices in operations at National Nuclear
Security Administration facilities and sites.
Sec. 3119. Pilot program on unavailability for overhead costs of amounts
specified for laboratory-directed research and development.
Sec. 3120. Research and development of advanced naval nuclear fuel
system based on low-enriched uranium.
Sec. 3121. Increase in certain limitations applicable to funds for
conceptual and construction design of the Department of
Energy.
Sec. 3122. Prohibition on availability of funds for programs in Russian
Federation.
Sec. 3123. Limitation on availability of funds for Federal salaries and
expenses.
Sec. 3124. Limitation on availability of funds for defense environmental
cleanup program direction.
Sec. 3125. Limitation on availability of funds for acceleration of
nuclear weapons dismantlement.

Subtitle C--Plans and Reports

Sec. 3131. Independent assessment of technology development under
defense environmental cleanup program.
Sec. 3132. Updated plan for verification and monitoring of proliferation
of nuclear weapons and fissile material.
Sec. 3133. Report on the use of highly-enriched uranium for naval
reactors.
Sec. 3134. Analysis of approaches for supplemental treatment of low-
activity waste at Hanford Nuclear Reservation.
Sec. 3135. Clarification of annual report and certification on status of
security of atomic energy defense facilities.
Sec. 3136. Report on service support contracts and authority for
appointment of certain personnel.
Sec. 3137. Elimination of certain reporting requirements.

[[Page 2022]]

Sec. 3138. Report on United States nuclear deterrence.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

TITLE XXXV--MARITIME MATTERS

Subtitle A--Maritime Administration, Coast Guard, and Shipping Matters

Sec. 3501. Authorization of the Maritime Administration.
Sec. 3502. Authority to extend certain age restrictions relating to
vessels in the Maritime Security Fleet.
Sec. 3503. Corrections to provisions enacted by Coast Guard
Authorization Acts.
Sec. 3504. Status of National Defense Reserve Fleet vessels.
Sec. 3505. NDRF national security multi-mission vessel.
Sec. 3506. Superintendent of United States Merchant Marine Academy.
Sec. 3507. Use of National Defense Reserve Fleet scrapping proceeds.
Sec. 3508. Floating dry docks.
Sec. 3509. Transportation worker identification credentials for
individuals undergoing separation, discharge, or release from
the Armed Forces.
Sec. 3510. Actions to address sexual harassment and sexual assault at
the United States Merchant Marine Academy.
Sec. 3511. Sexual assault response coordinators and sexual assault
victim advocates.
Sec. 3512. Report from the Department of Transportation Inspector
General.
Sec. 3513. Sexual assault prevention and response working group.
Sec. 3514. Sea Year compliance.
Sec. 3515. State maritime academy physical standards and reporting.
Sec. 3516. Appointments.
Sec. 3517. Maritime workforce working group.
Sec. 3518. Maritime extreme weather task force.
Sec. 3519. Workforce plans and onboarding policies.
Sec. 3520. Drug and alcohol policy.
Sec. 3521. Vessel transfers.
Sec. 3522. Clarifying amendment; continuation boards.
Sec. 3523. Polar icebreaker recapitalization plan.
Sec. 3524. GAO report on icebreaking capability in United States.

Subtitle B--Pribilof Islands Transition Completion

Sec. 3531. Short title.
Sec. 3532. Conveyance of property.
Sec. 3533. Transfer, use, and disposal of tract 43.

Subtitle C--Sexual Harassment and Assault Prevention at the National
Oceanic and Atmospheric Administration

Sec. 3541. Actions to address sexual harassment at National Oceanic and
Atmospheric Administration.
Sec. 3542. Actions to address sexual assault at National Oceanic and
Atmospheric Administration.
Sec. 3543. Rights of the victim of a sexual assault.
Sec. 3544. Change of station.
Sec. 3545. Applicability of policies to crews of vessels secured by
National Oceanic and Atmospheric Administration under
contract.
Sec. 3546. Annual report on sexual assaults in the National Oceanic and
Atmospheric Administration.
Sec. 3547. Sexual assault defined.

DIVISION D--FUNDING TABLES

Sec. 4001. Authorization of amounts in funding tables.

TITLE XLI--PROCUREMENT

Sec. 4101. Procurement.
Sec. 4102. Procurement for overseas contingency operations.
Sec. 4103. Procurement for overseas contingency operations for base
requirements.

TITLE XLII--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Sec. 4201. Research, development, test, and evaluation.
Sec. 4202. Research, development, test, and evaluation for overseas
contingency operations.

[[Page 2023]]

Sec. 4203. Research, development, test, and evaluation for overseas
contingency operations for base requirements.

TITLE XLIII--OPERATION AND MAINTENANCE

Sec. 4301. Operation and maintenance.
Sec. 4302. Operation and maintenance for overseas contingency
operations.
Sec. 4303. Operation and maintenance for overseas contingency operations
for base requirements.

TITLE XLIV--MILITARY PERSONNEL

Sec. 4401. Military personnel.
Sec. 4402. Military personnel for overseas contingency operations.
Sec. 4403. Military personnel for overseas contingency operations for
base requirements.

TITLE XLV--OTHER AUTHORIZATIONS

Sec. 4501. Other authorizations.
Sec. 4502. Other authorizations for overseas contingency operations.
Sec. 4503. Other authorizations for overseas contingency operations for
base requirements.

TITLE XLVI--MILITARY CONSTRUCTION

Sec. 4601. Military construction.
Sec. 4602. Military construction for overseas contingency operations.
Sec. 4603. Military construction for overseas contingency operations for
base requirements.

TITLE XLVII--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Sec. 4701. Department of Energy national security programs.

DIVISION E--UNIFORM CODE OF MILITARY JUSTICE REFORM

Sec. 5001. Short title.

TITLE LI--GENERAL PROVISIONS

Sec. 5101. Definitions.
Sec. 5102. Clarification of persons subject to UCMJ while on inactive-
duty training.
Sec. 5103. Staff judge advocate disqualification due to prior
involvement in case.
Sec. 5104. Conforming amendment relating to military magistrates.
Sec. 5105. Rights of victim.

TITLE LII--APPREHENSION AND RESTRAINT

Sec. 5121. Restraint of persons charged.
Sec. 5122. Modification of prohibition of confinement of members of the
Armed Forces with enemy prisoners and certain others.

TITLE LIII--NON-JUDICIAL PUNISHMENT

Sec. 5141. Modification of confinement as non-judicial punishment.

TITLE LIV--COURT-MARTIAL JURISDICTION

Sec. 5161. Courts-martial classified.
Sec. 5162. Jurisdiction of general courts-martial.
Sec. 5163. Jurisdiction of special courts-martial.
Sec. 5164. Summary court-martial as non-criminal forum.

TITLE LV--COMPOSITION OF COURTS-MARTIAL

Sec. 5181. Technical amendment relating to persons authorized to convene
general courts-martial.
Sec. 5182. Who may serve on courts-martial and related matters.
Sec. 5183. Number of court-martial members in capital cases.
Sec. 5184. Detailing, qualifications, and other matters relating to
military judges.
Sec. 5185. Military magistrates.
Sec. 5186. Qualifications of trial counsel and defense counsel.
Sec. 5187. Assembly and impaneling of members and related matters.

TITLE LVI--PRE-TRIAL PROCEDURE

Sec. 5201. Charges and specifications.
Sec. 5202. Certain proceedings conducted before referral.
Sec. 5203. Preliminary hearing required before referral to general
court-martial.
Sec. 5204. Disposition guidance.

[[Page 2024]]

Sec. 5205. Advice to convening authority before referral for trial.
Sec. 5206. Service of charges and commencement of trial.

TITLE LVII--TRIAL PROCEDURE

Sec. 5221. Duties of assistant defense counsel.
Sec. 5222. Sessions.
Sec. 5223. Technical amendment relating to continuances.
Sec. 5224. Conforming amendments relating to challenges.
Sec. 5225. Statute of limitations.
Sec. 5226. Former jeopardy.
Sec. 5227. Pleas of the accused.
Sec. 5228. Subpoena and other process.
Sec. 5229. Refusal of person not subject to UCMJ to appear, testify, or
produce evidence.
Sec. 5230. Contempt.
Sec. 5231. Depositions.
Sec. 5232. Admissibility of sworn testimony by audiotape or videotape
from records of courts of inquiry.
Sec. 5233. Conforming amendment relating to defense of lack of mental
responsibility.
Sec. 5234. Voting and rulings.
Sec. 5235. Votes required for conviction, sentencing, and other matters.
Sec. 5236. Findings and sentencing.
Sec. 5237. Plea agreements.
Sec. 5238. Record of trial.

TITLE LVIII--SENTENCES

Sec. 5301. Sentencing.
Sec. 5302. Effective date of sentences.
Sec. 5303. Sentence of reduction in enlisted grade.

TITLE LIX--POST-TRIAL PROCEDURE AND REVIEW OF COURTS-MARTIAL

Sec. 5321. Post-trial processing in general and special courts-martial.
Sec. 5322. Limited authority to act on sentence in specified post-trial
circumstances.
Sec. 5323. Post-trial actions in summary courts-martial and certain
general and special courts-martial.
Sec. 5324. Entry of judgment.
Sec. 5325. Waiver of right to appeal and withdrawal of appeal.
Sec. 5326. Appeal by the United States.
Sec. 5327. Rehearings.
Sec. 5328. Judge advocate review of finding of guilty in summary court-
martial.
Sec. 5329. Transmittal and review of records.
Sec. 5330. Courts of Criminal Appeals.
Sec. 5331. Review by Court of Appeals for the Armed Forces.
Sec. 5332. Supreme Court review.
Sec. 5333. Review by Judge Advocate General.
Sec. 5334. Appellate defense counsel in death penalty cases.
Sec. 5335. Authority for hearing on vacation of suspension of sentence
to be conducted by qualified judge advocate.
Sec. 5336. Extension of time for petition for new trial.
Sec. 5337. Restoration.
Sec. 5338. Leave requirements pending review of certain court-martial
convictions.

TITLE LX--PUNITIVE ARTICLES

Sec. 5401. Reorganization of punitive articles.
Sec. 5402. Conviction of offense charged, lesser included offenses, and
attempts.
Sec. 5403. Soliciting commission of offenses.
Sec. 5404. Malingering.
Sec. 5405. Breach of medical quarantine.
Sec. 5406. Missing movement; jumping from vessel.
Sec. 5407. Offenses against correctional custody and restriction.
Sec. 5408. Disrespect toward superior commissioned officer; assault of
superior commissioned officer.
Sec. 5409. Willfully disobeying superior commissioned officer.
Sec. 5410. Prohibited activities with military recruit or trainee by
person in position of special trust.
Sec. 5411. Offenses by sentinel or lookout.
Sec. 5412. Disrespect toward sentinel or lookout.
Sec. 5413. Release of prisoner without authority; drinking with
prisoner.
Sec. 5414. Penalty for acting as a spy.

[[Page 2025]]

Sec. 5415. Public records offenses.
Sec. 5416. False or unauthorized pass offenses.
Sec. 5417. Impersonation offenses.
Sec. 5418. Insignia offenses.
Sec. 5419. False official statements; false swearing.
Sec. 5420. Parole violation.
Sec. 5421. Wrongful taking, opening, etc. of mail matter.
Sec. 5422. Improper hazarding of vessel or aircraft.
Sec. 5423. Leaving scene of vehicle accident.
Sec. 5424. Drunkenness and other incapacitation offenses.
Sec. 5425. Lower blood alcohol content limits for conviction of drunken
or reckless operation of vehicle, aircraft, or vessel.
Sec. 5426. Endangerment offenses.
Sec. 5427. Communicating threats.
Sec. 5428. Technical amendment relating to murder.
Sec. 5429. Child endangerment.
Sec. 5430. Rape and sexual assault offenses.
Sec. 5431. Deposit of obscene matter in the mail.
Sec. 5432. Fraudulent use of credit cards, debit cards, and other access
devices.
Sec. 5433. False pretenses to obtain services.
Sec. 5434. Robbery.
Sec. 5435. Receiving stolen property.
Sec. 5436. Offenses concerning Government computers.
Sec. 5437. Bribery.
Sec. 5438. Graft.
Sec. 5439. Kidnapping.
Sec. 5440. Arson; burning property with intent to defraud.
Sec. 5441. Assault.
Sec. 5442. Burglary and unlawful entry.
Sec. 5443. Stalking.
Sec. 5444. Subornation of perjury.
Sec. 5445. Obstructing justice.
Sec. 5446. Misprision of serious offense.
Sec. 5447. Wrongful refusal to testify.
Sec. 5448. Prevention of authorized seizure of property.
Sec. 5449. Wrongful interference with adverse administrative proceeding.
Sec. 5450. Retaliation.
Sec. 5451. Extraterritorial application of certain offenses.
Sec. 5452. Table of sections.

TITLE LXI--MISCELLANEOUS PROVISIONS

Sec. 5501. Technical amendments relating to courts of inquiry.
Sec. 5502. Technical amendment to Article 136.
Sec. 5503. Articles of Uniform Code of Military Justice to be explained
to officers upon commissioning.
Sec. 5504. Military justice case management; data collection and
accessibility.

TITLE LXII--MILITARY JUSTICE REVIEW PANEL AND ANNUAL REPORTS

Sec. 5521. Military Justice Review Panel.
Sec. 5522. Annual reports.

TITLE LXIII--CONFORMING AMENDMENTS AND EFFECTIVE DATES

Sec. 5541. Amendments to UCMJ subchapter tables of sections.
Sec. 5542. Effective dates.

SEC. 3. <>  CONGRESSIONAL DEFENSE
COMMITTEES.

In this Act, the term ``congressional defense committees'' has the
meaning given that term in section 101(a)(16) of title 10, United States
Code.
SEC. 4. BUDGETARY EFFECTS OF THIS ACT.

The budgetary effects of this Act, for the purposes of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, jointly submitted for printing in the
Congressional Record by the Chairmen of the House and Senate Budget
Committees, provided that such statement has been submitted prior to the
vote on passage in the House acting first on the conference report or
amendment between the Houses.

[[Page 2026]]

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Authorization of appropriations.

Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for AH-64E Apache helicopters.
Sec. 112. Multiyear procurement authority for UH-60M and HH-60M Black
Hawk helicopters.
Sec. 113. Distributed Common Ground System-Army increment 1.
Sec. 114. Assessment of certain capabilities of the Department of the
Army.

Subtitle C--Navy Programs

Sec. 121. Determination of vessel delivery dates.
Sec. 122. Incremental funding for detail design and construction of LHA
replacement ship designated LHA 8.
Sec. 123. Littoral Combat Ship.
Sec. 124. Limitation on use of sole-source shipbuilding contracts for
certain vessels.
Sec. 125. Limitation on availability of funds for the Advanced Arresting
Gear Program.
Sec. 126. Limitation on availability of funds for procurement of U.S.S.
Enterprise (CVN-80).
Sec. 127. Sense of Congress on aircraft carrier procurement schedules.
Sec. 128. Report on P-8 Poseidon aircraft.
Sec. 129. Design and construction of replacement dock landing ship
designated LX(R) or amphibious transport dock designated LPD-
29.

Subtitle D--Air Force Programs

Sec. 131. EC-130H Compass Call recapitalization program.
Sec. 132. Repeal of requirement to preserve certain retired C-5
aircraft.
Sec. 133. Repeal of requirement to preserve F-117 aircraft in recallable
condition.
Sec. 134. Prohibition on availability of funds for retirement of A-10
aircraft.
Sec. 135. Limitation on availability of funds for destruction of A-10
aircraft in storage status.
Sec. 136. Prohibition on availability of funds for retirement of Joint
Surveillance Target Attack Radar System aircraft.
Sec. 137. Elimination of annual report on aircraft inventory.

Subtitle E--Defense-wide, Joint, and Multiservice Matters

Sec. 141. Standardization of 5.56mm rifle ammunition.
Sec. 142. Fire suppressant and fuel containment standards for certain
vehicles.
Sec. 143. Limitation on availability of funds for destruction of certain
cluster munitions.
Sec. 144. Report on Department of Defense munitions strategy for the
combatant commands.
Sec. 145. Modifications to reporting on use of combat mission
requirements funds.
Sec. 146. Report on alternative management structures for the F-35 joint
strike fighter program.
Sec. 147. Comptroller General review of F-35 Lightning II aircraft
sustainment support.
Sec. 148. Briefing on acquisition strategy for Ground Mobility Vehicle.
Sec. 149. Study and report on optimal mix of aircraft capabilities for
the Armed Forces.

Subtitle A--Authorization of Appropriations

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 2017
for procurement for the Army, the Navy and the Marine

[[Page 2027]]

Corps, the Air Force, and Defense-wide activities, as specified in the
funding table in section 4101.

Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR AH-64E APACHE
HELICOPTERS.

(a) Authority for Multiyear Procurement.--Subject to section 2306b
of title 10, United States Code, the Secretary of the Army may enter
into one or more multiyear contracts, beginning with the fiscal year
2017 program year, for the procurement of AH-64E Apache helicopters.
(b) Condition for Out-year Contract Payments.--A contract entered
into under subsection (a) shall provide that any obligation of the
United States to make a payment under the contract for a fiscal year
after fiscal year 2017 is subject to the availability of appropriations
for that purpose for such later fiscal year.
SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR UH-60M AND HH-60M
BLACK HAWK HELICOPTERS.

(a) Authority for Multiyear Procurement.--Subject to section 2306b
of title 10, United States Code, the Secretary of the Army may enter
into one or more multiyear contracts, beginning with the fiscal year
2017 program year, for the procurement of UH-60M and HH-60M Black Hawk
helicopters.
(b) Condition for Out-year Contract Payments.--A contract entered
into under subsection (a) shall provide that any obligation of the
United States to make a payment under the contract for a fiscal year
after fiscal year 2017 is subject to the availability of appropriations
for that purpose for such later fiscal year.
SEC. 113. DISTRIBUTED COMMON GROUND SYSTEM-ARMY INCREMENT 1.

(a) Training for Operators.--The Secretary of the Army shall take
such actions as may be necessary to improve and tailor training for
covered units in the versions of increment 1 that are in use on the date
of the enactment of this Act.
(b) Fielding of Capability.--
(1) In general.--The Secretary shall rapidly identify and
field a capability for fixed and deployable multi-source ground
processing systems for covered units.
(2) Commercially available capabilities.--In carrying out
paragraph (1), the Secretary shall procure commercially
available off-the-shelf technologies that--
(A) meet essential tactical requirements for
processing, analyzing, and displaying intelligence
information;
(B) can integrate and communicate with covered units
at the tactical unit level and at higher unit levels;
(C) are substantially easier for personnel to use
than the Distributed Common Ground System-Army; and
(D) require less training than the Distributed
Common Ground System-Army.

(c) Limitation on the Award of Contract.--The Secretary may not
enter into a contract for the design, development, or procurement of any
data architecture, data integration, or ``cloud'' capability, or any
data analysis or data visualization and workflow

[[Page 2028]]

capability (including warfighting function tools relating to increment 1
of the Distributed Common Ground System-Army) for covered units unless
the contract--
(1) is awarded not later than 180 days after the date of the
enactment of this Act;
(2) is awarded in accordance with applicable law and
regulations providing for the use of competitive procedures or
procedures applicable to the procurement of commercial items
including parts 12 and 15 of the Federal Acquisition Regulation;
(3) is a fixed-price contract; and
(4) provides that the technology to be procured under the
contract will--
(A) begin initial fielding rapidly after the
contract award;
(B) achieve initial operating capability not later
than nine months after the date on which the contract is
awarded; and
(C) achieve full operating capability not later than
18 months after the date on which the contract is
awarded.

(d) Waiver.--
(1) In general.--The Secretary of Defense may waive the
limitation in subsection (c) if the Secretary submits to the
appropriate congressional committees a written statement
declaring that such limitation would adversely affect ongoing
operational activities.
(2) Nondelegation.--The Secretary of Defense may not
delegate the waiver authority under paragraph (1).

(e) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the congressional defense committees;
(B) the Select Committee on Intelligence of the
Senate; and
(C) the Permanent Select Committee on Intelligence
of the House of Representatives.
(2) Covered units.--The term ``covered units'' means
military units that use increment 1 of the Distributed Common
Ground System-Army, including tactical units and operators at
the division, brigade, and battalion levels, and tactical units
below the battalion level.
SEC. 114. ASSESSMENT OF CERTAIN CAPABILITIES OF THE DEPARTMENT OF
THE ARMY.

(a) Assessment.--The Secretary of Defense, in consultation with the
Secretary of the Army and the Chief of Staff of the Army, shall conduct
an assessment of the following capabilities with respect to the
Department of the Army:
(1) The capacity of AH-64 Apache-equipped attack
reconnaissance battalions to meet future needs.
(2) Air defense artillery capacity and responsiveness,
including--
(A) the capacity of short-range air defense
artillery to address existing and emerging threats,
including threats posed by unmanned aerial systems,
cruise missiles, and manned aircraft; and
(B) the potential for commercial off-the-shelf
solutions.

[[Page 2029]]

(3) Chemical, biological, radiological, and nuclear
capabilities and modernization needs.
(4) Field artillery capabilities, including--
(A) modernization needs;
(B) munitions inventory shortfalls; and
(C) changes in doctrine and war plans consistent
with the Memorandum of the Secretary of Defense dated
June 19, 2008, regarding the Department of Defense
policy on cluster munitions and unintended harm to
civilians.
(5) Fuel distribution and water purification capacity and
responsiveness.
(6) Watercraft and port-opening capabilities and
responsiveness.
(7) Transportation capacity and responsiveness, particularly
with respect to the transportation of fuel, water, and cargo.
(8) Military police capacity.
(9) Tactical mobility and tactical wheeled vehicle capacity,
including heavy equipment prime movers.

(b) Report.--Not later than April 1, 2017, the Secretary of Defense
shall submit to the congressional defense committees a report that
includes--
(1) the assessment conducted under subsection (a);
(2) recommendations for reducing or eliminating shortfalls
in responsiveness and capacity with respect to each of the
capabilities described in such subsection; and
(3) an estimate of the costs of implementing such
recommendations.

(c) Form.--The report under subsection (b) shall be submitted in
unclassified form, but may include a classified annex.

Subtitle C--Navy Programs

SEC. 121. DETERMINATION OF VESSEL DELIVERY DATES.

(a) Determination of Vessel Delivery Dates.--
(1) In general.--Chapter 633 of title 10, United States
Code, is amended by inserting after section 7300 the following
new section:
``Sec. 7301. <>  Determination of vessel
delivery dates

``(a) In General.--The delivery of a covered vessel shall be deemed
to occur on the date on which--
``(1) the Secretary of the Navy determines that the vessel
is assembled and complete; and
``(2) custody of the vessel and all systems contained in the
vessel transfers to the Navy.

``(b) Inclusion in Budget and Acquisition Reports.--The delivery
dates of covered vessels shall be included--
``(1) in the materials submitted to Congress by the
Secretary of Defense in support of the budget of the President
for each fiscal year (as submitted to Congress under section
1105(a) of title 31, United States Code); and
``(2) in any relevant Selected Acquisition Report submitted
to Congress under section 2432 of this title.

``(c) Covered Vessel Defined.--In this section, the term `covered
vessel' means any vessel of the Navy that is under construction

[[Page 2030]]

on or after the date of the enactment of this section using amounts
authorized to be appropriated for the Department of Defense for
shipbuilding and conversion, Navy.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter <> is amended
by inserting after the item relating to section 7300 the
following new item:

``7301. Determination of vessel delivery dates.''.

(b) <>  Certification.--
(1) In general.--Not later than January 1, 2017, the
Secretary of the Navy shall certify to the congressional defense
committees that the delivery dates of the following vessels have
been adjusted in accordance with section 7301 of title 10,
United States Code, as added by subsection (a):
(A) The U.S.S. John F. Kennedy (CVN-79).
(B) The U.S.S. Zumwalt (DDG-1000).
(C) The U.S.S. Michael Monsoor (DDG-1001).
(D) The U.S.S. Lyndon B. Johnson (DDG-1002).
(E) Any other vessel of the Navy that is under
construction on the date of the enactment of this Act.
(2) Contents.--The certification under paragraph (1) shall
include--
(A) an identification of each vessel for which the
delivery date was adjusted; and
(B) the delivery date of each such vessel, as so
adjusted.
SEC. 122. INCREMENTAL FUNDING FOR DETAIL DESIGN AND CONSTRUCTION
OF LHA REPLACEMENT SHIP DESIGNATED LHA 8.

(a) Authority To Use Incremental Funding.--The Secretary of the Navy
may enter into and incrementally fund a contract for detail design and
construction of the LHA Replacement ship designated LHA 8 and, subject
to subsection (b), funds for payments under the contract may be provided
from amounts authorized to be appropriated for the Department of Defense
for Shipbuilding and Conversion, Navy, for fiscal years 2017 and 2018.
(b) Condition for Out-year Contract Payments.--A contract entered
into under subsection (a) shall provide that any obligation of the
United States to make a payment under the contract for any subsequent
fiscal year is subject to the availability of appropriations for that
purpose for such subsequent fiscal year.
SEC. 123. LITTORAL COMBAT SHIP.

(a) Report on Littoral Combat Ship Mission Packages.--
(1) In general.--The Secretary of Defense shall include in
the materials submitted in support of the budget of the
President (as submitted to Congress under section 1105(a) of
title 31, United States Code) for each fiscal year through
fiscal year 2022 a report on Littoral Combat Ship mission
packages.
(2) Elements.--Each report under paragraph (1) shall
include, with respect to each Littoral Combat Ship mission
package and increment, the following:
(A) A description of the status of and plans for
development, production, and sustainment, including--
(i) projected unit costs compared to
originally estimated unit costs for each system
that comprises the mission package;

[[Page 2031]]

(ii) projected development costs, procurement
costs, and 20-year sustainment costs compared to
original estimates of such costs for each system
that comprises the mission package;
(iii) demonstrated performance compared to
required performance for each system that
comprises the mission package and for the mission
package as a whole;
(iv) problems relating to realized and
potential costs, schedule, or performance; and
(v) any development plans, production plans,
or sustainment and mitigation plans that may be
implemented to address such problems.
(B) A description, including dates, of each
developmental test, operational test, integrated test,
and follow-on test event that is--
(i) completed in the fiscal year preceding the
fiscal year covered by the report; and
(ii) expected to be completed in the fiscal
year covered by the report and any of the
following five fiscal years.
(C) The date on which initial operational capability
is expected to be attained and a description of the
performance level criteria that must be demonstrated to
declare that such capability has been attained.
(D) A description of--
(i) the systems that attained initial
operational capability in the fiscal year
preceding the fiscal year covered by the report;
and
(ii) the performance level demonstrated by
such systems compared to the performance level
required of such systems.
(E) The acquisition inventory objective for each
system.
(F) An identification of--
(i) each location (including the city, State,
and country) to which systems were delivered in
the fiscal year preceding the fiscal year covered
by the report; and
(ii) the quantity of systems delivered to each
such location.
(G) An identification of--
(i) each location (including the city, State,
and country) to which systems are projected to be
delivered in the fiscal year covered by the report
and any of the following five fiscal years; and
(ii) the quantity of systems projected to be
delivered to each such location.

(b) Certification of Littoral Combat Ship Mission Package Program of
Record.--
(1) In general.--The Under Secretary of Defense for
Acquisition, Technology, and Logistics shall include in the
materials submitted in support of the budget of the President
(as submitted to Congress under section 1105(a) of title 31,
United States Code) for fiscal year 2018 the certification
described in paragraph (2).
(2) Certification.--The certification described in this
paragraph is a certification with respect to Littoral Combat

[[Page 2032]]

Ship mission packages that includes, as of the fiscal year
covered by the certification, the program of record quantity
for--
(A) surface warfare mission packages;
(B) anti-submarine warfare mission packages; and
(C) mine countermeasures mission packages.

(c) Limitations.--
(1) Limitation on deviation from acquisition strategy.--
(A) In general.--The Secretary of Defense may not
revise or deviate from revision three of the Littoral
Combat Ship acquisition strategy, until the date on
which the Secretary submits to the congressional defense
committees the certification described in subparagraph
(B).
(B) Certification.--The certification described in
this subparagraph is a certification that includes--
(i) the rationale of the Secretary for
revising or deviating from revision three of the
Littoral Combat Ship acquisition strategy;
(ii) a description of each such revision or
deviation; and
(iii) the Littoral Combat Ship acquisition
strategy that is in effect following the
implementation of such revisions or deviations.
(2) Limitation on selection of single contractor.--The
Secretary of Defense may not select only a single prime
contractor to construct the Littoral Combat Ship or any
successor frigate class ship unless such selection--
(A) is conducted using competitive procedures and
for the limited purpose of awarding a contract or
contracts for--
(i) an engineering change proposal for a
frigate class ship; or
(ii) the construction of a frigate class ship;
and
(B) occurs only after a frigate design has--
(i) reached sufficient maturity and completed
a preliminary design review; or
(ii) demonstrated an equivalent level of
design completeness.

(d) Definitions.--In this section:
(1) Littoral combat ship mission package.--The term
``Littoral Combat Ship mission package'' means a mission module
for a Littoral Combat Ship combined with the crew detachment and
support aircraft for such ship.
(2) Mission module.--The term ``mission module'' means the
mission systems (including vehicles, communications, sensors,
and weapons systems) combined with support equipment (including
support containers and standard interfaces) and software
(including software relating to the computing environment and
multiple vehicle communications system of the mission package).
(3) Revision three.--The term ``revision three of the
Littoral Combat Ship acquisition strategy'' means the third
revision of the Littoral Combat Ship acquisition strategy
approved by the Under Secretary of Defense for Acquisition,
Technology, and Logistics on March 29, 2016.

[[Page 2033]]

(e) Repeal of Quarterly Reporting Requirement.--Section 126 of the
National Defense Authorization Act for Fiscal Year 2013 (Public Law 112-
239; 126 Stat. 1657) is amended--
(1) by striking subsection (b); and
(2) by striking ``(a) Designation Required.--''.
SEC. 124. LIMITATION ON USE OF SOLE-SOURCE SHIPBUILDING CONTRACTS
FOR CERTAIN VESSELS.

(a) Limitation.--None of the funds authorized to be appropriated by
this Act or otherwise made available for the Department of Defense for
fiscal year 2017 for joint high speed vessels or expeditionary fast
transports may be used to enter into or prepare to enter into a contract
on a sole-source basis for the construction of such vessels or
transports unless the Secretary of the Navy submits to the congressional
defense committees the certification described in subsection (b) and the
report described in subsection (c).
(b) Certification.--The certification described in this subsection
is a certification by the Secretary of the Navy that--
(1) awarding a contract for the construction of one or more
joint high speed vessels or expeditionary fast transports on a
sole-source basis is in the national security interests of the
United States;
(2) the construction of the vessels or transports will not
result in exceeding the requirement for the ship class, as
described in the most recent Navy force structure assessment;
(3) the contract will be a fixed-price contract;
(4) the price of the contract will be fair and reasonable,
as determined by the service acquisition executive of the Navy;
and
(5) the contract will provide for the United States to have
Government purpose rights in the data for the ship design.

(c) Report.--The report described in this subsection is a report
that includes--
(1) an explanation of the rationale for awarding a contract
for the construction of joint high speed vessels or
expeditionary fast transports on a sole-source basis; and
(2) a description of--
(A) actions that may be carried out to ensure that,
if additional ships in the class are procured after the
award of the contract referred to in paragraph (1), the
contracts for the ships shall be awarded using
competitive procedures; and
(B) with respect to each such action, an
implementation schedule and any associated cost savings,
as compared to a contract awarded on a sole-source
basis.
SEC. 125. LIMITATION ON AVAILABILITY OF FUNDS FOR THE ADVANCED
ARRESTING GEAR PROGRAM.

(a) Advanced Arresting Gear for U.S.S. Enterprise.--None of the
funds authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 for the research and development, design,
procurement, or advanced procurement of materials for advanced arresting
gear for the U.S.S. Enterprise (CVN-80) may be obligated or expended
until the Secretary of Defense submits to the congressional defense
committees the report described in section 2432 of title 10, United
States Code, for the most recently

[[Page 2034]]

concluded fiscal quarter for the Advanced Arresting Gear Program in
accordance with subsection (c)(1).
(b) Advanced Arresting Gear for U.S.S. John F. Kennedy.--None of the
funds authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 for the research and development, design,
procurement, or advanced procurement of materials for advanced arresting
gear for the U.S.S. John F. Kennedy (CVN-79) may be obligated or
expended unless--
(1) the decision to install advanced arresting gear on the
vessel is determined by the milestone decision authority for the
Program; and
(2) the milestone decision authority for the Program submits
notification of such determination to the congressional defense
committees.

(c) Additional Requirements.--
(1) Treatment of baseline estimate.--The Secretary of
Defense shall deem the Baseline Estimate for the Advanced
Arresting Gear Program for fiscal year 2009 as the original
Baseline Estimate for the Program.
(2) Unit cost reports and critical cost growth.--
(A) Subject to subparagraph (B), the Secretary shall
carry out sections 2433 and 2433a of title 10, United
States Code, with respect to the Advanced Arresting Gear
Program, as if the Department had submitted a Selected
Acquisition Report for the Program that included the
Baseline Estimate for the Program for fiscal year 2009
as the original Baseline Estimate, except that the
Secretary shall not carry out subparagraph (B) or
subparagraph (C) of section 2433a(c)(1) of such title
with respect to the Program.
(B) In carrying out the review required by section
2433a of such title, the Secretary shall not approve a
contract, enter into a new contract, exercise an option
under a contract, or otherwise extend the scope of a
contract for advanced arresting gear for the U.S.S.
Enterprise (CVN-80), except to the extent determined
necessary by the milestone decision authority, on a non-
delegable basis, to ensure that the Program can be
restructured as intended by the Secretary without
unnecessarily wasting resources.

(d) Definitions.--In this section:
(1) Baseline estimate.--The term ``Baseline Estimate'' has
the meaning given the term in section 2433(a)(2) of title 10,
United States Code.
(2) Mileston decision authority.--The term ``milestone
decision authority'' has the meaning given the term in section
2366b(g)(3) of title 10, United States Code.
(3) Original baseline estimate.--The term ``original
Baseline Estimate'' has the meaning given the term in section
2435(d)(1) of title 10, United States Code.
(4) Selected acquisition report.--The term ``Selected
Acquisition Report'' means a Selected Acquisition Report
submitted to Congress under section 2432 of title 10, United
States Code.
SEC. 126. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT OF
U.S.S. ENTERPRISE (CVN-80).

(a) Limitation.--Of the funds authorized to be appropriated by this
Act or otherwise made available for fiscal year 2017 for

[[Page 2035]]

advance procurement or procurement for the U.S.S. Enterprise (CVN-80),
not more than 25 percent may be obligated or expended until the date on
which the Secretary of the Navy and the Chief of Naval Operations
jointly submit to the congressional defense committees the report under
subsection (b).
(b) Initial Report on CVN-79 and CVN-80.--Not later than December 1,
2016, the Secretary of the Navy and the Chief of Naval Operations shall
jointly submit to the congressional defense committees a report that
includes a description of actions that may be carried out (including de-
scoping requirements, if necessary) to achieve a ship end cost of--
(1) not more than $12,000,000,000 for the CVN-80; and
(2) not more than $11,000,000,000 for the U.S.S. John F.
Kennedy (CVN-79).

(c) Annual Report on CVN-79 and CVN-80.--
(1) In general.--Together with the budget of the President
for each fiscal year through fiscal year 2021 (as submitted to
Congress under section 1105(a) of title 31, United States Code)
the Secretary of the Navy and the Chief of Naval Operations
shall submit a report on the efforts of the Navy to achieve the
ship end costs described in subsection (b) for the CVN-79 and
CVN-80.
(2) Elements.--The report under paragraph (1) shall include,
with respect to the procurement of the CVN-79 and the CVN-80,
the following:
(A) A description of the progress made toward
achieving the ship end costs described in subsection
(b), including realized cost savings.
(B) A description of low value-added or unnecessary
elements of program cost that have been reduced or
eliminated.
(C) Cost savings estimates for current and planned
initiatives.
(D) A schedule that includes--
(i) a plan for spending with phasing of key
obligations and outlays;
(ii) decision points describing when savings
may be realized; and
(iii) key events that must occur to execute
initiatives and achieve savings.
(E) Instances of lower Government estimates used in
contract negotiations.
(F) A description of risks that may result from
achieving the procurement end costs specified in
subsection (b).
(G) A description of incentives or rewards provided
or planned to be provided to prime contractors for
meeting the procurement end costs specified in
subsection (b).
SEC. 127. SENSE OF CONGRESS ON AIRCRAFT CARRIER PROCUREMENT
SCHEDULES.

(a) Findings.--Congress finds the following:
(1) In the Congressional Budget Office report titled ``An
Analysis of the Navy's Fiscal Year 2016 Shipbuilding Plan'', the
Office stated as follows: ``To prevent the carrier force from
declining to 10 ships in the 2040s, 1 short of its inventory

[[Page 2036]]

goal of 11, the Navy could accelerate purchases after 2018 to 1
every four years, rather than 1 every five years''.
(2) In a report submitted to Congress on March 17, 2015, the
Secretary of the Navy indicated the Department of the Navy has a
requirement of 11 aircraft carriers.

(b) Sense of Congress.--It is the sense of Congress that--
(1) the plan of the Department of the Navy to schedule the
procurement of one aircraft carrier every five years will reduce
the overall aircraft carrier inventory to 10 aircraft carriers,
a level insufficient to meet peacetime and war plan
requirements; and
(2) to accommodate the required aircraft carrier force
structure, the Department of the Navy should--
(A) begin to program construction for the next
aircraft carrier to be built after the U.S.S. Enterprise
(CVN-80) in fiscal year 2022; and
(B) program the required advance procurement
activities to accommodate the construction of such
carrier.
SEC. 128. REPORT ON P-8 POSEIDON AIRCRAFT.

(a) Report Required.--Not later than October 1, 2017, the Secretary
of the Navy shall submit to the congressional defense committees a
report on potential upgrades to the capabilities of the P-8 Poseidon
aircraft.
(b) Elements.--The report under subsection (a) shall include, with
respect to the P-8 Poseidon aircraft, the following:
(1) A review of potential upgrades to the sensors onboard
the aircraft, including upgrades to intelligence sensors,
surveillance sensors, and reconnaissance sensors such as those
being fielded on MQ-4 Global Hawk aircraft platforms.
(2) An assessment of the ability of the Navy to use long-
range multispectral imaging systems onboard the aircraft that
are similar to such systems being used onboard the MQ-4 Global
Hawk aircraft.
SEC. 129. DESIGN AND CONSTRUCTION OF REPLACEMENT DOCK LANDING SHIP
DESIGNATED LX(R) OR AMPHIBIOUS TRANSPORT
DOCK DESIGNATED LPD-29.

(a) In General.--The Secretary of the Navy may enter into a
contract, beginning with the fiscal year 2017 program year, for the
design and construction of the replacement dock landing ship designated
LX(R) or the amphibious transport dock designated LPD-29 using amounts
authorized to be appropriated for the Department of Defense for
Shipbuilding and Conversion, Navy.
(b) Use of Incremental Funding.--With respect to the contract
entered into under subsection (a), the Secretary may use incremental
funding to make payments under the contract.
(c) Condition for Out-year Contract Payments.--The contract entered
into under subsection (a) shall provide that any obligation of the
United States to make a payment under such contract for any fiscal year
after fiscal year 2017 is subject to the availability of appropriations
for that purpose for such fiscal year.

[[Page 2037]]

Subtitle D--Air Force Programs

SEC. 131. EC-130H COMPASS CALL RECAPITALIZATION PROGRAM.

(a) Authorization.--Subject to subsection (b), the Secretary of the
Air Force may carry out a program to transfer the primary mission
equipment of the EC-130H Compass Call aircraft fleet to an aircraft
platform that the Secretary determines--
(1) is more operationally effective and survivable than the
existing EC-130H Compass Call aircraft platform; and
(2) meets the requirements of the combatant commands.

(b) Limitation.--
(1) Except as provided in paragraph (2), none of the funds
authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 or any other fiscal year for
procurement may be obligated or expended on the program under
subsection (a) until the date on which the Secretary of the Air
Force determines that there is a high likelihood that the
program will meet the requirements of the combatant commands.
(2) The limitation in paragraph (1)--
(A) shall not apply to the development and
procurement of the first two aircraft under the program;
and
(B) shall not limit the authority of the Secretary
to enter into a contract that may include an option for
the future production of aircraft under the program if--
(i) the exercise of such option is at the
discretion of the Secretary; and
(ii) such option is not exercised until the
Secretary determines that there is a high
likelihood that the program will meet the
requirements of the combatant commands.
SEC. 132. REPEAL OF REQUIREMENT TO PRESERVE CERTAIN RETIRED C-5
AIRCRAFT.

Section 141 of the National Defense Authorization Act for Fiscal
Year 2013 (Public Law 112-239; 126 Stat. 1659) is amended by striking
subsection (d).
SEC. 133. REPEAL OF REQUIREMENT TO PRESERVE F-117 AIRCRAFT IN
RECALLABLE CONDITION.

Section 136 of the John Warner National Defense Authorization Act
for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2114) is amended by
striking subsection (b).
SEC. 134. PROHIBITION ON AVAILABILITY OF FUNDS FOR RETIREMENT OF
A-10 AIRCRAFT.

(a) Prohibition on Availability of Funds for Retirement.--None of
the funds authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 for the Air Force may be obligated or
expended to retire, prepare to retire, or place in storage or on backup
aircraft inventory status any A-10 aircraft.
(b) Additional Limitation on Retirement.--In addition to the
prohibition in subsection (a), the Secretary of the Air Force may not
retire, prepare to retire, or place in storage or on backup aircraft
inventory status any A-10 aircraft until a period of 90 days has elapsed
following the date on which the Secretary submits

[[Page 2038]]

to the congressional defense committees the report under subsection
(e)(2).
(c) Prohibition on Significant Reductions in Manning Levels.--None
of the funds authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 for the Air Force may be obligated or
expended to make significant reductions to manning levels with respect
to any A-10 aircraft squadrons or divisions.
(d) Minimum Inventory Requirement.--The Secretary of the Air Force
shall ensure the Air Force maintains a minimum of 171 A-10 aircraft
designated as primary mission aircraft inventory until a period of 90
days has elapsed following the date on which the Secretary submits to
the congressional defense committees the report under subsection (e)(2).
(e) Reports Required.--
(1) The Director of Operational Test and Evaluation shall
submit to the congressional defense committees a report that
includes--
(A) the results and findings of the initial
operational test and evaluation of the F-35 aircraft
program; and
(B) a comparison test and evaluation that examines
the capabilities of the F-35A and A-10C aircraft in
conducting close air support, combat search and rescue,
and forward air controller airborne missions.
(2) Not later than 180 days after the date of the submission
of the report under paragraph (1), the Secretary of the Air
Force shall submit to the congressional defense committees a
report that includes--
(A) the views of the Secretary with respect to the
results of the initial operational test and evaluation
of the F-35 aircraft program as summarized in the report
under paragraph (1), including any issues or concerns of
the Secretary with respect to such results;
(B) a plan for addressing any deficiencies and
carrying out any corrective actions identified in such
report; and
(C) short-term and long-term strategies for
preserving the capability of the Air Force to conduct
close air support, combat search and rescue, and forward
air controller airborne missions.

(f) Special Rule.--
(1) Subject to paragraph (2), the Secretary of the Air Force
may carry out the transition of the A-10 unit at Fort Wayne Air
National Guard Base, Indiana, to an F-16 unit as described by
the Secretary in the Force Structure Actions map submitted in
support of the budget of the President for fiscal year 2017 (as
submitted to Congress under section 1105(a) of title 31, United
States Code).
(2) Subsections (a) through (e) shall apply with respect to
any A-10 aircraft affected by the transition described in
paragraph (1).
SEC. 135. LIMITATION ON AVAILABILITY OF FUNDS FOR DESTRUCTION OF
A-10 AIRCRAFT IN STORAGE STATUS.

(a) Limitation.--None of the funds authorized to be appropriated by
this Act or otherwise made available for the Air Force for fiscal year
2017 or any fiscal year thereafter may be obligated or expended to
scrap, destroy, or otherwise dispose of any potential

[[Page 2039]]

donor A-10 aircraft until the date on which the Secretary of the Air
Force submits to the congressional defense committees the report
required under section 134(e)(2).
(b) Notification and Certification.--Not later than 45 days before
taking any action to scrap, destroy, or otherwise dispose of any A-10
aircraft in any storage status in the 309th Aerospace Maintenance and
Regeneration Group, the Secretary of the Air Force shall--
(1) notify the congressional defense committees of the
intent of the Secretary to take such action; and
(2) certify that the A-10 aircraft subject to such action
does not have serviceable wings or other components that could
be used to prevent the permanent removal of any active inventory
A-10 aircraft from flyable status.

(c) Plan to Prevent Removal A-10 Aircraft From Flyable Status.--The
Secretary of the Air Force shall--
(1) include with the materials submitted to Congress in
support of the budget of the Department of Defense for fiscal
year 2018 (as submitted with the budget of the President under
section 1105(a) of title 31, United States Code) a plan to
prevent the permanent removal of any active inventory A-10
aircraft from flyable status due to unserviceable wings or any
other required component during the period covered by the future
years defense plan submitted to Congress under section 221 of
title 10, United States Code; and
(2) carry out such plan to prevent the permanent removal of
any active inventory A-10 aircraft from flyable status.

(d) Potential Donor A-10 Aircraft Defined.--In this section, the
term ``potential donor A-10 aircraft'' means any A-10 aircraft in any
storage status in the 309th Aerospace Maintenance and Regeneration Group
that has serviceable wings or other components that could be used to
prevent any active inventory A-10 aircraft from being permanently
removed from flyable status due to unserviceable wings or other
components.
SEC. 136. PROHIBITION ON AVAILABILITY OF FUNDS FOR RETIREMENT OF
JOINT SURVEILLANCE TARGET ATTACK RADAR
SYSTEM AIRCRAFT.

(a) Prohibition.--Except as provided by subsection (b) and in
addition to the prohibition under section 144 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat.
758), none of the funds authorized to be appropriated or otherwise made
available for fiscal year 2018 for the Air Force may be obligated or
expended to retire, or prepare to retire, any Joint Surveillance Target
Attack Radar System aircraft.
(b) Exception.--The prohibition in subsection (a) shall not apply to
individual Joint Surveillance Target Attack Radar System aircraft that
the Secretary of the Air Force determines, on a case-by-case basis, to
be non-operational because of mishaps, other damage, or being
uneconomical to repair.
SEC. 137. ELIMINATION OF ANNUAL REPORT ON AIRCRAFT INVENTORY.

Section 231a of title 10, United States Code, is amended--
(1) by striking subsection (e); and
(2) by redesignating subsection (f) as subsection (e).

[[Page 2040]]

Subtitle E--Defense-wide, Joint, and Multiservice Matters

SEC. 141. STANDARDIZATION OF 5.56MM RIFLE AMMUNITION.

(a) Report.--If, on the date that is 180 days after the date of the
enactment of this Act, the Army and the Marine Corps are using in combat
two different types of enhanced 5.56mm rifle ammunition, the Secretary
of Defense shall, on such date, submit to the congressional defense
committees a report explaining the reasons that the Army and the Marine
Corps are using different types of such ammunition.
(b) Standardization Requirement.--Except as provided in subsection
(c), not later than one year after the date of the enactment of this
Act, the Secretary of Defense shall ensure that the Army and the Marine
Corps are using in combat one standard type of enhanced 5.56mm rifle
ammunition.
(c) Exception.--Subsection (b) shall not apply in a case in which
the Secretary of Defense--
(1) determines that a state of emergency requires the Army
and the Marine Corps to use in combat different types of
enhanced 5.56mm rifle ammunition; and
(2) certifies to the congressional defense committees that
such a determination has been made.
SEC. 142. <>  FIRE SUPPRESSANT AND FUEL
CONTAINMENT STANDARDS FOR CERTAIN
VEHICLES.

(a) Guidance Required.--
(1) The Secretary of the Army shall issue guidance regarding
fire suppressant and fuel containment standards for covered
vehicles of the Army.
(2) The Secretary of the Navy shall issue guidance regarding
fire suppressant and fuel containment standards for covered
vehicles of the Marine Corps.

(b) Elements.--The guidance regarding fire suppressant and fuel
containment standards issued pursuant to subsection (a) shall--
(1) meet the survivability requirements applicable to each
class of covered vehicles;
(2) include standards for vehicle armor, vehicle fire
suppression systems, and fuel containment technologies in
covered vehicles; and
(3) balance cost, survivability, and mobility.

(c) Report to Congress.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of the Army and the Secretary
of the Navy shall each submit to the congressional defense committees a
report that includes--
(1) the policy guidance established pursuant to subsection
(a), set forth separately for each class of covered vehicle; and
(2) any other information the Secretaries determine to be
appropriate.

(d) Covered Vehicles.--In this section, the term ``covered
vehicles'' means ground vehicles acquired on or after October 1, 2018,
under a major defense acquisition program (as such term is defined in
section 2430 of title 10, United States Code), including light tactical
vehicles, medium tactical vehicles, heavy tactical vehicles, and ground
combat vehicles.

[[Page 2041]]

SEC. 143. LIMITATION ON AVAILABILITY OF FUNDS FOR DESTRUCTION OF
CERTAIN CLUSTER MUNITIONS.

(a) Limitation.--Except as provided in subsection (b), none of the
funds authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 for the Department of Defense may be
obligated or expended for the destruction of cluster munitions until the
date on which the Secretary of Defense submits the report required by
subsection (c).
(b) Exception for Safety.--The limitation under subsection (a) shall
not apply to the destruction of cluster munitions that the Secretary
determines--
(1) are unserviceable as a result of an inspection, test,
field incident, or other significant failure to meet performance
or logistics requirements; or
(2) are unsafe or could pose a safety risk if not
demilitarized or destroyed.

(c) Report Required.--
(1) In general.--Not later than March 1, 2017, the Secretary
of Defense shall submit to the congressional defense committees
a report that includes each of the following elements:
(A) A description of the policy of the Department of
Defense regarding the use of cluster munitions,
including an explanation of the process through which
commanders may seek waivers to use such munitions.
(B) A 10-year projection of the requirements and
inventory levels for all cluster munitions that takes
into account future production of cluster munitions, any
plans for demilitarization of such munitions, any plans
for the recapitalization of such munitions, the age of
the munitions, storage and safety considerations, and
other factors that will affect the size of the
inventory.
(C) A 10-year projection for the cost to achieve the
inventory levels projected in subparagraph (B),
including the cost for potential demilitarization or
disposal of such munitions.
(D) A 10-year projection for the cost to develop and
produce new cluster munitions that comply with the
Memorandum of the Secretary of Defense dated June 19,
2008, regarding the Department of Defense policy on
cluster munitions and unintended harm to civilians that
the Secretary determines are necessary to meet the
demands of current operational plans.
(E) An assessment, by the Chairman of the Joint
Chiefs of Staff, of the effects of the projected cluster
inventory on operational plans.
(F) Any other matters that the Secretary determines
should be included in the report.
(2) Form of report.--The report required by paragraph (1)
shall be submitted in unclassified form, but may include a
classified annex.

(d) Cluster Munitions Defined.--In this section, the term ``cluster
munitions'' includes systems delivered by aircraft, cruise missiles,
artillery, mortars, missiles, tanks, rocket launchers, or naval guns
that deploy payloads of explosive submunitions that detonate via target
acquisition, impact, or altitude, or that self-destruct.

[[Page 2042]]

SEC. 144. REPORT ON DEPARTMENT OF DEFENSE MUNITIONS STRATEGY FOR
THE COMBATANT COMMANDS.

(a) Report Required.--Not later than April 1, 2017, the Secretary of
Defense shall submit to the congressional defense committees a report on
the munitions strategy for the combatant commands for the six-year
period beginning on January 1, 2017.
(b) Elements.--The report required by subsection (a) shall include
the following:
(1) For each year covered by the report, an identification
of the munitions requirements of the combatant commands,
including--
(A) plans, programming, and budgeting for each type
of munition; and
(B) the inventory of each type of munition.
(2) An assessment of any gaps and shortfalls with respect to
munitions determined to be essential to the ability of the
combatant commands to fulfill mission requirements.
(3) An assessment of how current and planned munitions
programs may affect operational concepts and capabilities of the
combatant commands.
(4) An identification of limitations in relevant industrial
bases and a description of necessary munitions investments.
(5) An assessment of how munitions capability and capacity
may be affected by changes consistent with the memorandum of the
Secretary of Defense dated June 19, 2008, regarding the policy
of the Department of Defense on cluster munitions and unintended
harm to civilians.
(6) Any other matters the Secretary determines appropriate.
SEC. 145. MODIFICATIONS TO REPORTING ON USE OF COMBAT MISSION
REQUIREMENTS FUNDS.

Section 123 of the Ike Skelton National Defense Authorization Act
for Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4158; 10 U.S.C. 167
note) is amended--
(1) in the section heading, by striking ``quarterly'' and
inserting ``annual'';
(2) in the subsection heading of subsection (a), by striking
``Quarterly'' and inserting ``Annual''; and
(3) by striking ``quarter'' each place it appears and
inserting ``year''.
SEC. 146. REPORT ON ALTERNATIVE MANAGEMENT STRUCTURES FOR THE F-35
JOINT STRIKE FIGHTER PROGRAM.

(a) In General.--Not later than March 31, 2017, the Secretary of
Defense shall submit to the congressional defense committees a report on
potential alternative management structures for the F-35 joint strike
fighter program.
(b) Elements.--The report under subsection (a) shall include the
following:
(1) An analysis of potential alternative management
structures for the F-35 joint strike fighter program,
including--
(A) continuation of the joint program office for the
program;
(B) the establishment of separate program offices
for the program in the Department of the Air Force and
the Department of the Navy;

[[Page 2043]]

(C) the establishment of separate program offices
for each variant of the F-35A, F-35B, and F-35C;
(D) division of responsibilities for the program
between a joint program office and the military
departments; and
(E) such other alternative management structures as
the Secretary determines to be appropriate.
(2) An evaluation of the benefits and drawbacks of each
alternative management structure analyzed in the report with
respect to--
(A) cost;
(B) alignment of responsibility and accountability;
and
(C) the adequacy of representation from military
departments and program partners.

(c) Form.--The report under subsection (a) shall be submitted in
unclassified form, but may include a classified annex.
SEC. 147. COMPTROLLER GENERAL REVIEW OF F-35 LIGHTNING II AIRCRAFT
SUSTAINMENT SUPPORT.

(a) Review.--Not later than September 30, 2017, the Comptroller
General of the United States shall submit to the congressional defense
committees a report on the sustainment support structure for the F-35
Lightning II aircraft program.
(b) Elements.--The review under subsection (a) shall include, with
respect to the F-35 Lightning II aircraft program, the following:
(1) The status of the sustainment support strategy for the
program, including goals for personnel training, required
infrastructure, and fleet readiness.
(2) Approaches, including performance-based logistics,
considered in developing the sustainment support strategy for
the program.
(3) Other information regarding sustainment and logistics
support for the program that the Comptroller General determines
to be of critical importance to the long-term viability of the
program.
SEC. 148. BRIEFING ON ACQUISITION STRATEGY FOR GROUND MOBILITY
VEHICLE.

(a) Briefing Required.--Not later than 180 days after the date of
the enactment of this Act, the Under Secretary of Defense for
Acquisition, Technology, and Logistics, in consultation with the
Secretary of the Army, shall provide a briefing to the congressional
defense committees on the acquisition strategy for the Ground Mobility
Vehicle for use with the Global Response Force of the 82nd Airborne
Division.
(b) Elements.--The briefing under subsection (a) shall include an
assessment of the following:
(1) The feasability of acquiring the Ground Mobility
Vehicle--
(A) as a commercially available off-the-shelf item
(as such term is defined in section 104 of title 41,
United States Code); or
(B) as a modified version of such an item.
(2) Whether acquiring the Ground Mobility Vehicle in a
manner described in paragraph (1) would satisfy the requirements
of the program and reduce the life-cycle cost of the program.

[[Page 2044]]

(3) Whether the acquisition strategy for the Ground Mobility
Vehicle meets the focus areas specified in the most recent
version of the Better Buying Power initiative of the Secretary
of Defense.
(4) Whether including an active safety system in the Ground
Mobility Vehicle, such as the electronic stability control
system used on the joint light tactical vehicle, would reduce
the risk of vehicle rollover.
SEC. 149. STUDY AND REPORT ON OPTIMAL MIX OF AIRCRAFT CAPABILITIES
FOR THE ARMED FORCES.

(a) Study.--
(1) In general.--The Secretary of Defense shall conduct a
study to determine--
(A) an optimal mix of short-range fighter-class
strike aircraft and long-range strike aircraft for the
use of the Armed Forces during the covered period;
(B) an optimal mix of manned aerial platforms and
unmanned aerial platforms for the use of the Armed
Forces during such period; and
(C) an optimal mix of other aircraft and
capabilities for the use of the Armed Forces during such
period, including--
(i) long-range, medium-range, and short-range
intelligence, surveillance, reconnaissance, or
strike aircraft, or combination of such aircraft;
(ii) aircraft with varying observability
characteristics;
(iii) land-based and sea-based aircraft;
(iv) advanced legacy fourth-generation
aircraft platforms of proven design;
(v) next generation air superiority
capabilities; and
(vi) advanced technology innovations.
(2) Considerations.--In making the determinations under
paragraph (1), the Secretary shall consider defense strategy,
critical assumptions, priorities, force size, and cost.

(b) Report.--
(1) In general.--Not later than April 14, 2017, the
Secretary shall submit to the appropriate congressional
committees a report that includes the following:
(A) The results of the study conducted under
subsection (a).
(B) A discussion of the specific assumptions,
observations, conclusions, and recommendations of the
study.
(C) A description of the modeling and analysis
techniques used for the study.
(D) A plan for fielding complementary aircraft and
capabilities identified as an optimal mix in the study
under subsection (a).
(E) A plan to meet objectives and fulfill the
warfighting capability and capacity requirements of the
combatant commands using the aircraft and capabilities
described in subsection (a).
(2) Form.--The report under paragraph (1) may be submitted
in classified form, but shall include an unclassified executive
summary.

[[Page 2045]]

(3) Nonduplication of effort.--If any information required
under paragraph (1) has been included in another report or
notification previously submitted to any of the appropriate
congressional committees by law, the Secretary may provide a
list of such reports and notifications at the time of submitting
the report required under such paragraph instead of including
such information in such report.
(4) Definitions.--ln this subsection:
(A) The term ``appropriate congressional
committees'' means the congressional defense committees,
the Select Committee on Intelligence of the Senate, and
the Permanent Select Committee on Intelligence of the
House of Representatives.
(B) The term ``covered period'' means the period
beginning on the date of the enactment of this Act and
ending on January 1, 2030.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Laboratory quality enhancement program.
Sec. 212. Modification of mechanisms to provide funds for defense
laboratories for research and development of technologies for
military missions.
Sec. 213. Making permanent authority for defense research and
development rapid innovation program.
Sec. 214. Authorization for National Defense University and Defense
Acquisition University to enter into cooperative research and
development agreements.
Sec. 215. Manufacturing Engineering Education Grant Program.
Sec. 216. Notification requirement for certain rapid prototyping,
experimentation, and demonstration activities.
Sec. 217. Increased micro-purchase threshold for research programs and
entities.
Sec. 218. Improved biosafety for handling of select agents and toxins.
Sec. 219. Designation of Department of Defense senior official with
principal responsibility for directed energy weapons.
Sec. 220. Restructuring of the distributed common ground system of the
Army.
Sec. 221. Limitation on availability of funds for the countering weapons
of mass destruction system Constellation.
Sec. 222. Limitation on availability of funds for Defense Innovation
Unit Experimental.
Sec. 223. Limitation on availability of funds for Joint Surveillance
Target Attack Radar System (JSTARS) recapitalization program.
Sec. 224. Acquisition program baseline and annual reports on follow-on
modernization program for F-35 Joint Strike Fighter.

Subtitle C--Reports and Other Matters

Sec. 231. Strategy for assured access to trusted microelectronics.
Sec. 232. Pilot program on evaluation of commercial information
technology.
Sec. 233. Pilot program for the enhancement of the research,
development, test, and evaluation centers of the Department
of Defense.
Sec. 234. Pilot program on modernization and fielding of electromagnetic
spectrum warfare systems and electronic warfare capabilities.
Sec. 235. Pilot program on disclosure of certain sensitive information
to federally funded research and development centers.
Sec. 236. Pilot program on enhanced interaction between the Defense
Advanced Research Projects Agency and the service academies.
Sec. 237. Independent review of F/A-18 physiological episodes and
corrective actions.
Sec. 238. B-21 bomber development program accountability matrices.
Sec. 239. Study on helicopter crash prevention and mitigation
technology.

[[Page 2046]]

Sec. 240. Strategy for Improving Electronic and Electromagnetic Spectrum
Warfare Capabilities.
Sec. 241. Sense of Congress on development and fielding of fifth
generation airborne systems.

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 2017
for the use of the Department of Defense for research, development,
test, and evaluation, as specified in the funding table in section 4201.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. <>  LABORATORY QUALITY
ENHANCEMENT PROGRAM.

(a) In General.--The Secretary of Defense, acting through the
Assistant Secretary of Defense for Research and Engineering, shall carry
out a program to be known as the ``Laboratory Quality Enhancement
Program'' under which the Secretary shall establish the panels described
in subsection (b) and direct such panels--
(1) to review and make recommendations to the Secretary with
respect to--
(A) existing policies and practices affecting the
science and technology reinvention laboratories to
improve the mission effectiveness of such laboratories;
and
(B) new initiatives proposed by the science and
technology reinvention laboratories;
(2) to support implementation of current and future
initiatives affecting the science and technology reinvention
laboratories; and
(3) to conduct assessments or data analysis on such other
issues as the Secretary determines to be appropriate.

(b) Panels.--The panels described in this subsection are:
(1) A panel on personnel, workforce development, and talent
management.
(2) A panel on facilities, equipment, and infrastructure.
(3) A panel on research strategy, technology transfer, and
industry and university partnerships.
(4) A panel on governance and oversight processes.

(c) Composition of Panels.--(1) Each panel described in paragraphs
(1) through (3) of subsection (b) may be composed of subject matter and
technical management experts from--
(A) laboratories and research centers of the Army, Navy, and
Air Force;
(B) appropriate Defense Agencies;
(C) the Office of the Assistant Secretary of Defense for
Research and Engineering; and
(D) such other entities as the Secretary determines to be
appropriate.

(2) The panel described in subsection (b)(4) shall be composed of--
(A) the Director of the Army Research Laboratory;

[[Page 2047]]

(B) the Director of the Air Force Research Laboratory;
(C) the Director of the Naval Research Laboratory;
(D) the Director of the Engineer Research and Development
Center of the Army Corps of Engineers; and
(E) such other members as the Secretary determines to be
appropriate.

(d) Governance of Panels.--(1) The chairperson of each panel shall
be selected by its members.
(2) Each panel, in coordination with the Assistant Secretary of
Defense for Research and Engineering, shall transmit to the Science and
Technology Executive Committee of the Department of Defense such
information or findings on topics requiring decision or approval as the
panel considers appropriate.
(e) Discharge of Certain Authorities to Conduct Personnel
Demonstration Projects.--Subparagraph (C) of section 342(b)(3) of the
National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2721), as added by section 1114(a) of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as enacted into
law by Public Law 106-398; 114 Stat. 1654A-315), is amended by inserting
before the period at the end the following: ``through the Assistant
Secretary of Defense for Research and Engineering (who shall place an
emphasis in the exercise of such authorities on enhancing efficient
operations of the laboratory and who may, in exercising such
authorities, request administrative support from science and technology
reinvention laboratories to review, research, and adjudicate personnel
demonstration project proposals)''.
(f) Science and Technology Reinvention Laboratory Defined.--In this
section, the term ``science and technology reinvention laboratory''
means a science and technology reinvention laboratory designated under
section 1105 of the National Defense Authorization Act for Fiscal Year
2010 (Public Law 111-84; 10 U.S.C. 2358 note), as amended.
SEC. 212. MODIFICATION OF MECHANISMS TO PROVIDE FUNDS FOR DEFENSE
LABORATORIES FOR RESEARCH AND DEVELOPMENT
OF TECHNOLOGIES FOR MILITARY MISSIONS.

(a) Amount Authorized Under Current Mechanism.--Paragraph (1) of
subsection (a) of section 219 of the Duncan Hunter National Defense
Authorization Act for Fiscal Year 2009 (10 U.S.C. 2358 note) is amended
in the matter before subparagraph (A) by striking ``not more than three
percent'' and inserting ``not less than two percent and not more than
four percent''.
(b) Additional Mechanism to Provide Funds.--Such subsection is
further amended by adding at the end the following new paragraph:
``(3) Fee.--After consultation with the science and
technology executive of the military department concerned, the
director of a defense laboratory may charge customer activities
a fixed percentage fee, in addition to normal costs of
performance, in order to obtain funds to carry out activities
authorized by this subsection. The fixed fee may not exceed four
percent of costs.''.

(c) Modification of Cost Limit Compliance for Infrastructure
Projects.--Subsection (b)(4) of such section is amended by adding at the
end the following new subparagraph:

[[Page 2048]]

``(C) Section 2802 of such title, with respect to
construction projects that exceed the cost specified in
subsection (a)(2) of section 2805 of such title for
certain unspecified minor military construction projects
for laboratories.''.

(d) Repeal of Sunset.--Such section is amended by striking
subsection (d).
SEC. 213. MAKING PERMANENT AUTHORITY FOR DEFENSE RESEARCH AND
DEVELOPMENT RAPID INNOVATION PROGRAM.

Section 1073 of the Ike Skelton National Defense Authorization Act
for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 2359 note) is
amended--
(1) in subsection (d), by striking ``for each of fiscal
years 2011 through 2023 may be used for any such fiscal year''
and inserting ``for a fiscal year may be used for such fiscal
year''; and
(2) by striking subsection (f).
SEC. 214. AUTHORIZATION FOR NATIONAL DEFENSE UNIVERSITY AND
DEFENSE ACQUISITION UNIVERSITY TO ENTER
INTO COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENTS.

(a) National Defense University.--Section 2165 of title 10, United
States Code, is amended by adding at the end the following new
subsection:
``(f) Cooperative Research and Development Agreements.--(1) In
engaging in research and development projects pursuant to subsection (a)
of section 2358 of this title by a contract, cooperative agreement, or
grant pursuant to subsection (b)(1) of such section, the Secretary may
enter into such contract or cooperative agreement or award such grant
through the National Defense University.
``(2) The National Defense University shall be considered a
Government-operated Federal laboratory for purposes of section 12 of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a).''.
(b) Defense Acquisition University.--Section 1746 of title 10,
United States Code, is amended by adding at the end the following new
subsection:
``(d) Cooperative Research and Development Agreements.--(1) In
engaging in research and development projects pursuant to subsection (a)
of section 2358 of this title by a contract, cooperative agreement, or
grant pursuant to subsection (b)(1) of such section, the Secretary may
enter into such contract or cooperative agreement or award such grant
through the Defense Acquisition University.
``(2) The Defense Acquisition University shall be considered a
Government-operated Federal laboratory for purposes of section 12 of the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a).''.
SEC. 215. MANUFACTURING ENGINEERING EDUCATION GRANT PROGRAM.

Section 2196 of title 10, United States Code, is amended to read as
follows:

[[Page 2049]]

``Sec. 2196. Manufacturing engineering education program

``(a) Establishment of Manufacturing Engineering Education
Program.--(1) The Secretary of Defense shall establish a program under
which the Secretary makes grants or other awards to support--
``(A) the enhancement of existing programs in manufacturing
engineering education to further a mission of the department; or
``(B) the establishment of new programs in manufacturing
engineering education that meet such requirements.

``(2) Grants and awards under this section may be made to industry,
not-for-profit institutions, institutions of higher education, or to
consortia of such institutions or industry.
``(3) The Secretary shall establish the program in consultation with
the Secretary of Education, the Director of the National Science
Foundation, the Director of the Office of Science and Technology Policy,
and the secretaries of such other relevant Federal agencies as the
Secretary considers appropriate.
``(4) The Secretary shall ensure that the program is coordinated
with Department programs associated with advanced manufacturing.
``(5) The program shall be known as the `Manufacturing Engineering
Education Program'.
``(b) Geographical Distribution of Grants and Awards.--In awarding
grants and other awards under this subsection, the Secretary shall, to
the maximum extent practicable, avoid geographical concentration of
awards.
``(c) Covered Programs.--A program of engineering education
supported pursuant to this section shall meet the requirements of this
section.
``(d) Components of Program.--The program of education for which
such a grant is made shall be a consolidated and integrated
multidisciplinary program of education with an emphasis on the following
components:
``(1) Multidisciplinary instruction that encompasses the
total manufacturing engineering enterprise and that may
include--
``(A) manufacturing engineering education and
training through classroom activities, laboratory
activities, thesis projects, individual or team
projects, internships, cooperative work-study programs,
and interactions with industrial facilities, consortia,
or such other activities and organizations in the United
States and foreign countries as the Secretary considers
appropriate;
``(B) faculty development programs;
``(C) recruitment of educators highly qualified in
manufacturing engineering to teach or develop
manufacturing engineering courses;
``(D) presentation of seminars, workshops, and
training for the development of specific manufacturing
engineering skills;
``(E) activities involving interaction between
students and industry, including programs for visiting
scholars, personnel exchange, or industry executives;
``(F) development of new, or updating and
modification of existing, manufacturing curriculum,
course offerings, and education programs;

[[Page 2050]]

``(G) establishment of programs in manufacturing
workforce training;
``(H) establishment of joint manufacturing
engineering programs with defense laboratories and
depots; and
``(I) expansion of manufacturing training and
education programs and outreach for members of the armed
forces, dependents and children of such members,
veterans, and employees of the Department of Defense.
``(2) Opportunities for students to obtain work experience
in manufacturing through such activities as internships, summer
job placements, or cooperative work-study programs.
``(3) Faculty and student engagement with industry that is
directly related to, and supportive of, the education of
students in manufacturing engineering because of--
``(A) the increased understanding of manufacturing
engineering challenges and potential solutions; and
``(B) the enhanced quality and effectiveness of the
instruction that result from that increased
understanding.

``(e) Proposals.--The Secretary of Defense shall solicit proposals
for grants and other awards to be made pursuant to this section for the
support of programs of manufacturing engineering education that are
consistent with the purposes of this section.
``(f) Merit Competition.--Applications for awards shall be evaluated
on the basis of merit pursuant to competitive procedures prescribed by
the Secretary.
``(g) Selection Criteria.--The Secretary may select a proposal for
an award pursuant to this section if the proposal, at a minimum, does
each of the following:
``(1) Contains innovative approaches for improving
engineering education in manufacturing technology.
``(2) Demonstrates a strong commitment by the proponents to
apply the resources necessary to achieve the objectives for
which the award is to be made.
``(3) Provides for effective engagement with industry or
government organizations that supports the instruction to be
provided in the proposed program and is likely to improve
manufacturing engineering and technology.
``(4) Demonstrates a significant level of involvement of
United States industry in the proposed instructional and
research activities.
``(5) Is likely to attract superior students and promote
careers in manufacturing engineering.
``(6) Proposes to involve fully qualified personnel who are
experienced in manufacturing engineering education and
technology.
``(7) Proposes a program that, within three years after the
award is made, is likely to attract from sources other than the
Federal Government the financial and other support necessary to
sustain such program.
``(8) Proposes to achieve a significant level of
participation by women, members of minority groups, and
individuals with disabilities through active recruitment of
students from among such persons.
``(9) Trains students in advanced manufacturing and in
relevant emerging technologies and production processes.

``(h) Institution of Higher Education Defined.--In this section, the
term `institution of higher education' has the meaning

[[Page 2051]]

given such term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).''.
SEC. 216. NOTIFICATION REQUIREMENT FOR CERTAIN RAPID PROTOTYPING,
EXPERIMENTATION, AND DEMONSTRATION
ACTIVITIES.

(a) Notice Required.--The Secretary of the Navy shall not initiate a
covered activity until a period of 10 business days has elapsed
following the date on which the Secretary submits to the congressional
defense committees the notice described in subsection (b) with respect
to such activity.
(b) Elements of Notice.--The notice described in this subsection is
a written notice of the intention of the Secretary to initiate a covered
activity. Each such notice shall include the following:
(1) A description of the activity.
(2) Estimated costs and funding sources for the activity,
including a description of any cost-sharing or in-kind support
arrangements with other participants.
(3) A description of any transition agreement, including the
identity of any partner organization that may receive the
results of the covered activity under such an agreement.
(4) Identification of major milestones and the anticipated
date of completion of the activity.

(c) Covered Activity.--In this section, the term ``covered
activity'' means a rapid prototyping, experimentation, or demonstration
activity carried out under program element 0603382N.
(d) Sunset.--The requirements of this section shall terminate five
years after the date of the enactment of this Act.
SEC. 217. INCREASED MICRO-PURCHASE THRESHOLD FOR RESEARCH PROGRAMS
AND ENTITIES.

(a) Increased Micro-purchase Threshold for Basic Research Programs
and Activities of the Department of Defense Science and Technology
Reinvention Laboratories.--
(1) In general.--Chapter 137 of title 10, United States
Code, as amended by section 821(a), is further amended by adding
at the end the following new section:
``Sec. 2339. <>  Micro-purchase threshold for
basic research programs and activities of the
Department of Defense science and technology
reinvention laboratories

``Notwithstanding subsection (a) of section 1902 of title 41, the
micro-purchase threshold for the Department of Defense for purposes of
such section is $10,000 for purposes of basic research programs and for
the activities of the Department of Defense science and technology
reinvention laboratories.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter, as amended by <> section 821b, is further amended by adding at the end
the following new item:

``2339. Micro-purchase threshold for basic research programs and
activities of the Department of Defense science and
technology reinvention laboratories.''.

(b) Increased Micro-purchase Threshold for Universities, Independent
Research Institutes, and Nonprofit Research Organizations.--Section 1902
of title 41, United States Code, is amended--

[[Page 2052]]

(1) in subsection (a)--
(A) by striking ``For purposes'' and inserting ``(1)
Except as provided in sections 2338 and 2339 of title 10
and paragraph (2) of this subsection, for purposes'';
and
(B) by adding at the end the following new
paragraph:

``(2) For purposes of this section, the micro-purchase threshold for
procurement activities administered under sections 6303 through 6305 of
title 31 by institutions of higher education (as defined in section
101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), or
related or affiliated nonprofit entities, or by nonprofit research
organizations or independent research institutes is--
``(A) $10,000; or
``(B) such higher threshold as determined appropriate by the
head of the relevant executive agency and consistent with clean
audit findings under chapter 75 of title 31, internal
institutional risk assessment, or State law.''; and
(2) in subsections (d) and (e), by striking ``not greater
than $3,000'' and inserting ``with a price not greater than the
micro-purchase threshold''.
SEC. 218. <>  IMPROVED BIOSAFETY FOR
HANDLING OF SELECT AGENTS AND TOXINS.

(a) Quality Control and Quality Assurance Program.--The Secretary of
Defense, acting through the executive agent for the biological select
agent and toxin biosafety program of the Department of Defense, shall
carry out a program to implement certain quality control and quality
assurance measures at each covered facility.
(b) Quality Control and Quality Assurance Measures.--Subject to
subsection (c), the quality control and quality assurance measures
implemented at each covered facility under subsection (a) shall include
the following:
(1) Designation of an external manager to oversee quality
assurance and quality control.
(2) Environmental sampling and inspection.
(3) Production procedures that prohibit operations where
live biological select agents and toxins are used in the same
laboratory where viability testing is conducted.
(4) Production procedures that prohibit work on multiple
organisms or multiple strains of one organism within the same
biosafety cabinet.
(5) A video surveillance program that uses video monitoring
as a tool to improve laboratory practices in accordance with
regulatory requirements.
(6) Formal, recurring data reviews of production in an
effort to identify data trends and nonconformance issues before
such issues affect end products.
(7) Validated protocols for production processes to ensure
that process deviations are adequately vetted prior to
implementation.
(8) Maintenance and calibration procedures and schedules for
all tools, equipment, and irradiators.

(c) Waiver.--In carrying out the program under subsection (a), the
Secretary may waive any of the quality control and quality assurance
measures required under subsection (b) in the interest of national
defense.

[[Page 2053]]

(d) Study and Report Required.--
(1) Study.--The Secretary of Defense shall carry out a study
to evaluate--
(A) the feasibility of consolidating covered
facilities within a unified command to minimize risk;
(B) opportunities to partner with industry for the
production of biological select agents and toxins and
related services in lieu of maintaining such
capabilities within the Department of the Army; and
(C) whether operations under the biological select
agent and toxin production program should be transferred
to another government or commercial laboratory that may
be better suited to execute production for non-
Department of Defense customers.
(2) Report.--Not later than February 1, 2017, the Secretary
shall submit to the congressional defense committees a report on
the results of the study under paragraph (1).

(e) Comptroller General Review.--Not later than September 1, 2017,
the Comptroller General of the United States shall submit to the
congressional defense committees a report that includes the following:
(1) A review of--
(A) the actions taken by the Department of Defense
to address the findings and recommendations of the
report of the Department of the Army titled ``Individual
and Institutional Accountability for the Shipment of
Viable Bacillus Anthracis from Dugway Proving Grounds'',
dated December 15, 2015, including any actions taken to
address the culture of complacency in the biological
select agent and toxin production program identified in
such report; and
(B) the progress of the Secretary in carrying out
the program under subsection (a).
(2) An analysis of the study and report under subsection
(d).

(f) Definitions.--In this section:
(1) The term ``biological select agent and toxin'' means any
agent or toxin identified under--
(A) section 331.3 of title 7, Code of Federal
Regulations;
(B) section 121.3 or section 121.4 of title 9, Code
of Federal Regulations; or
(C) section 73.3 or section 73.4 of title 42, Code
of Federal Regulations.
(2) The term ``covered facility'' means any facility of the
Department of Defense that produces biological select agents and
toxins.
SEC. 219. <>  DESIGNATION OF DEPARTMENT
OF DEFENSE SENIOR OFFICIAL WITH PRINCIPAL
RESPONSIBILITY FOR DIRECTED ENERGY
WEAPONS.

(a) Designation of Senior Official.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall
designate a senior official already serving within the
Department of Defense as the official with principal
responsibility for the development and demonstration of directed
energy weapons for the Department.

[[Page 2054]]

(2) Development of strategic plan.--
(A) In general.--The senior official designated
under paragraph (1) shall develop a detailed strategic
plan to develop, mature, and transition directed energy
technologies to acquisition programs of record.
(B) Roadmap.--Such strategic plan shall include a
strategic roadmap for the development and fielding of
directed energy weapons and key enabling capabilities
for the Department, identifying and coordinating efforts
across military departments to achieve overall joint
mission effectiveness.
(3) Acceleration of development and fielding of directed
energy weapons capabilities.--
(A) In general.--To the degree practicable, the
senior official designated under paragraph (1) shall use
the flexibility of the policies of the Department in
effect on the day before the date of the enactment of
this Act, or any successor policies, to accelerate the
development and fielding of directed energy
capabilities.
(B) Engagement.--The Secretary shall use the
flexibility of the policies of the Department in effect
on the day before the date of the enactment of this Act,
or any successor policies, to ensure engagement with
defense and private industries, research universities,
and unaffiliated, nonprofit research institutions.
(4) Advice for exercises and demonstrations.--The senior
official designated under paragraph (1) shall, to the degree
practicable, provide technical advice and support to entities in
the Department of Defense and the military departments
conducting exercises or demonstrations with the purpose of
improving the capabilities of or operational viability of
technical capabilities supporting directed energy weapons,
including supporting military utility assessments of the
relevant cost and benefits of directed energy weapon systems.
(5) Support for development of requirements.--The senior
official designated under paragraph (1) shall coordinate with
the military departments, Defense Agencies, and the Joint
Directed Energy Transition Office to define requirements for
directed energy capabilities that address the highest priority
warfighting capability gaps of the Department.
(6) Availability of information.--The Secretary of Defense
shall ensure that the senior official designated under paragraph
(1) has access to such information on programs and activities of
the military departments and other defense agencies as the
Secretary considers appropriate to coordinate departmental
directed energy efforts.

(b) Joint Directed Energy Transition Office.--
(1) Redesignation.--The High Energy Laser Joint Technology
Office of the Department of Defense is hereby redesignated as
the ``Joint Directed Energy Transition Office'' (in this
subsection referred to as the ``Office''), and shall report to
the official designated under subsection (a)(1).
(2) Additional functions.--In addition to the functions and
duties of the Office in effect on the day before the date of the
enactment of this Act, the Office shall assist the senior
official designated under paragraph (1) of subsection (a) in
carrying out paragraphs (2) through (5) of such subsection.

[[Page 2055]]

(3) Funding.--The Secretary may make available such funds to
the Office for basic research, applied research, advanced
technology development, prototyping, studies and analyses, and
organizational support as the Secretary considers appropriate to
support the efficient and effective development of directed
energy systems and technologies and transition of those systems
and technologies into acquisition programs or operational use.
SEC. 220. <>  RESTRUCTURING OF THE
DISTRIBUTED COMMON GROUND SYSTEM OF THE
ARMY.

(a) In General.--Not later that April 1, 2017, the Secretary of the
Army shall restructure versions of the distributed common ground system
of the Army after Increment 1--
(1) by discontinuing development of new software code,
excluding the configuration and testing of system interfaces to
commercial, open source, and existing Government off the shelf
(GOTS) software, of any component of the system for which there
is commercial, open source, or Government off the shelf software
that is capable of fulfilling at least 80 percent of the system
requirements applicable to such component; and
(2) by conducting a review of the acquisition strategy of
the program to ensure that procurement of commercial software is
the preferred method of meeting program requirements for major
system components.

(b) Limitation.--The Secretary of the Army shall not award any
contract for the development of new component software capability for
the distributed common ground system of the Army if such a capability is
already a commercial item or open source, except for configuration of
capabilities that are incidental to and necessary for the proper
functioning of the system.
(c) Report Required.--
(1) Requirement.--Not later than March 1, 2018, the Under
Secretary of Defense for Acquisition, Technology and Logistics,
in consultation with the Director, Operational Test and
Evaluation, shall submit to the congressional defense committees
a report on the Increment 2 of the distributed common ground
system of the Army.
(2) Elements of report.--The report required by paragraph
(1) shall include, at a minimum, the following:
(A) The overall assessment of the system and each
individual major component of the system.
(B) The status of alignment with the Intelligence
Community Information Technology Enterprise (IC-ITE).
(C) The ease of use of Increment 2 as compared with
Increment 1 for operators in deployed environments.
(D) The extent to which a common, synchronized view
of all system data is globally available to all system
users, at all times.
(E) The level of maturity of the technologies
underlying core system components and application
programming interfaces.
(F) The extent to which program operators can move
data seamlessly between different components of the
system.

[[Page 2056]]

SEC. 221. LIMITATION ON AVAILABILITY OF FUNDS FOR THE COUNTERING
WEAPONS OF MASS DESTRUCTION SYSTEM
CONSTELLATION.

(a) Limitation.--Not more than 50 percent of the funds authorized to
be appropriated by this Act or otherwise made available for fiscal year
2017 for the countering weapons of mass destruction situational
awareness information system commonly known as ``Constellation'' may be
obligated or expended for research, development, or prototyping for such
system until the report required by subsection (b)(4) has been delivered
to the congressional defense committees.
(b) Independent Review and Assessment.--
(1) In general.--The Secretary of Defense shall provide for
an independent review and assessment of the requirements and
implementation for research, development, and prototyping for
the Constellation system prior to a Milestone A decision or
other operational use.
(2) Elements of independent review.--The independent review
provided for under paragraph (1) shall include the following:
(A) A review of the major software components of the
system and an explanation of the requirements of the
Department of Defense with respect to each such
component.
(B) A review of the requirements validated in the
Information System Initial Capabilities Document (ISICD)
and capability gaps identified for duplication and
redundancy with other validated information technology
requirements and capability gaps.
(C) Identification of elements and applications of
the system that cannot be implemented using the existing
technical infrastructure and tools of the Department of
Defense or the infrastructure and tools in development.
(D) An overview of a security plan to achieve an
accredited cross-domain solution system, including
security milestones and proposed security architecture
to mitigate both insider and outsider threats.
(E) Identification of the planned categories of end-
users of the system, linked to organizations, mission
requirements, and concept of operations, the expected
total number of end-users, and the associated
permissions granted to such users.
(3) Entity conducting independent review and assessment.--
The Secretary shall ensure that--
(A) the independent review and assessment provided
for under paragraph (1) is conducted by a federally
funded research and development center selected (or
entered into an arrangement with) by the Secretary or
such other entity as the Secretary considers
appropriate; and
(B) such center or entity provides periodic updates
to the congressional defense committees on such
independent review and assessment prior to the
completion of the independent review and assessment.
(4) Report on independent review and assessment.--The
Secretary shall submit to the congressional defense committees a
report containing--

[[Page 2057]]

(A) the findings of the center or entity selected
(or entered into an arrangement with) under paragraph
(3)(A) with respect to the independent review and
assessment conducted by such center or entity pursuant
to such paragraph; and
(B) an assessment of the need to continue
Constellation research, development, and prototyping.
SEC. 222. LIMITATION ON AVAILABILITY OF FUNDS FOR DEFENSE
INNOVATION UNIT EXPERIMENTAL.

(a) Limitation.--
(1) Operation and maintenance.--Of the funds specified in
subsection (c)(1), not more than 75 percent may be obligated or
expended until the date on which the Secretary of Defense
submits to the congressional defense committees the report under
subsection (b).
(2) Research, development, test, and evaluation.--Of the
funds specified in subsection (c)(2), not more than 25 percent
may be obligated or expended until the date on which the
Secretary submits to the congressional defense committees the
report under subsection (b).

(b) Report Required.--The Secretary of Defense shall submit to the
congressional defense committees a report on the Defense Innovation Unit
Experimental. Such report shall include the following:
(1) The charter and mission statement of the Unit.
(2) A description of--
(A) the management and operations of the Unit,
including--
(i) the governance structure of the Unit;
(ii) the process for coordinating and
deconflicting the activities of the Unit with
similar activities of the Small Business
Innovation Research Program, military departments,
Defense Agencies, and other departments and
agencies of the Federal Government, including
activities carried out by In-Q-Tel, the Defense
Advanced Research Projects Agency, and Department
of Defense laboratories;
(iii) the direct staffing requirements of the
Unit, including a description of the desired
skills and expertise of such staff at each
location;
(iv) the number of civilian and military
personnel provided by the military departments and
Defense Agencies to support the Unit; and
(v) any planned expansion to new sites, the
metrics used to identify such sites, and an
explanation of how such expansion will provide
access to innovations of nontraditional defense
contractors (as such term is defined in section
2302 of title 10, United States Code) that are not
otherwise accessible; and
(B) policies and practices that will enable the Unit
to best support Department of Defense missions,
including--
(i) the metrics used to measure the
effectiveness of the Unit;
(ii) how compliance with Department of Defense
or Federal Government requirements could affect
the

[[Page 2058]]

ability of nontraditional defense contractors (as
such term is defined in section 2302 of title 10,
United States Code) to market products and obtain
funding;
(iii) how to treat intellectual property that
has been developed with little or no government
funding;
(iv) detailed justification for the expansion
of the mission of the Unit, including authority to
use research and development agreements,
contracts, and merit-based prize competitions to
explore emerging technologies and additional
physical locations;
(v) a description of how existing Department
of Defense agencies, services, entities, and other
elements are authorized to better use streamlined
acquisition procedures, research and development
agreements, contracts, and merit-based prize
competitions to explore emerging technologies,
including modification of guidance and procedures
to permit effective and streamlined implementation
of authorities provided by Congress for rapid
execution;
(vi) an account of the successes and failures
of contracts already awarded by the unit;
(vii) recommendations on practices, policies,
and authorities that will permit increased public-
private partnership in financing and funding of
research and technology development efforts; and
(viii) a description of technology transition
strategies to ensure that research and technology
programs funded by the Unit will be effectively
and efficiently transitioned into operational use
or acquisition programs, including a description
of the role of Defense laboratories in such
technology transition efforts.
(3) Any other information the Secretary determines to be
appropriate.

(c) Funds Specified.--The funds specified in this subsection are as
follows:
(1) Funds authorized to be appropriated by this Act or
otherwise made available for fiscal year 2017 for operation and
maintenance, Defense-wide, for the Defense Innovation Unit
Experimental.
(2) Funds authorized to be appropriated by this Act or
otherwise made available for fiscal year 2017 for research,
development, test, and evaluation, Defense-wide, for the Defense
Innovation Unit Experimental.
SEC. 223. LIMITATION ON AVAILABILITY OF FUNDS FOR JOINT
SURVEILLANCE TARGET ATTACK RADAR SYSTEM
(JSTARS) RECAPITALIZATION PROGRAM.

(a) In General.--Except as provided in subsection (b), none of the
funds authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017 or any other fiscal year for the Air
Force may be made available for the Air Force's Joint Surveillance
Target Attack Radar System (JSTARS) recapitalization program unless the
contract for engineering and manufacturing development uses a firm
fixed-price contract structure.

[[Page 2059]]

(b) National Security Waiver Authority.--The Secretary of Defense
may waive the limitation in subsection (a) if the Secretary determines
that such a waiver is in the national security interests of the United
States.
SEC. 224. ACQUISITION PROGRAM BASELINE AND ANNUAL REPORTS ON
FOLLOW-ON MODERNIZATION PROGRAM FOR F-35
JOINT STRIKE FIGHTER.

(a) Limitation.--The Secretary of Defense may not award any follow-
on modernization development contracts for the F-35 Joint Strike Fighter
until the Secretary has submitted the report required by subsection
(b)(1) in accordance with such subsection.
(b) Acquisition Program Baseline.--
(1) In general.--Not later than March 31, 2017, the
Secretary of Defense shall submit to the congressional defense
committees a report that contains the basic elements of an
acquisition program baseline for Block 4 Modernization.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) Cost estimates for development, production, and
modification.
(B) Projected key schedule dates, including dates
for the completion of--
(i) a capabilities development document;
(ii) an independent cost estimate;
(iii) an initial preliminary design review;
(iv) a development contract award; and
(v) a critical design review.
(C) Technical performance parameters.
(D) Technology readiness levels.
(E) Annual funding profiles for development and
procurement.

(c) Review by Comptroller General of the United States.--Not later
than 60 days after the date on which the report required by subsection
(b)(1) is submitted to the congressional defense committees in
accordance with such subsection, the Comptroller General of the United
States shall--
(1) review such report; and
(2) brief the congressional defense committees on the
findings of the Comptroller General with respect to such review.

(d) Annual Reports by Secretary of Defense.--Not later than one year
after the date on which the Secretary awards a development contract for
follow-on modernization of the F-35 Joint Strike Fighter and not less
frequently than once each year thereafter until March 31, 2023, the
Secretary shall submit to the congressional defense committees a report
on the cost, schedule, and performance progress against the baseline set
forth in the report submitted pursuant to subsection (b)(1).

Subtitle C--Reports and Other Matters

SEC. 231. <>  STRATEGY FOR ASSURED ACCESS
TO TRUSTED MICROELECTRONICS.

(a) Strategy.--The Secretary of Defense shall develop a strategy to
ensure that the Department of Defense has assured

[[Page 2060]]

access to trusted microelectronics by not later than September 30, 2019.
(b) Elements.--The strategy under subsection (a) shall include the
following:
(1) Definitions of the various levels of trust required by
classes of Department of Defense systems.
(2) Means of classifying systems of the Department of
Defense based on the level of trust such systems are required to
maintain with respect to microelectronics.
(3) Means by which trust in microelectronics can be assured.
(4) Means to increase the supplier base for assured
microelectronics to ensure multiple supply pathways.
(5) An assessment of the microelectronics needs of the
Department of Defense in future years, including the need for
trusted, radiation-hardened microelectronics.
(6) An assessment of the microelectronic needs of the
Department of Defense that may not be fulfilled by entities
outside the Department of Defense.
(7) The resources required to assure access to trusted
microelectronics, including infrastructure, workforce, and
investments in science and technology.
(8) A research and development strategy to ensure that the
Department of Defense can, to the maximum extent practicable,
use state of the art commercial microelectronics capabilities or
their equivalent, while satisfying the needs for trust.
(9) Recommendations for changes in authorities, regulations,
and practices, including acquisition policies, financial
management, public-private partnership policies, or in any other
relevant areas, that would support the achievement of the goals
of the strategy.

(c) Submission and Updates.--(1) Not later than one year after the
date of the enactment of this Act, the Secretary shall submit to the
congressional defense committees the strategy developed under subsection
(a). The strategy shall be submitted in unclassified form, but may
include a classified annex.
(2) Not later than two years after submitting the strategy under
paragraph (1) and not less frequently than once every two years
thereafter until September 30, 2024, the Secretary shall update the
strategy as the Secretary considers appropriate to support Department of
Defense missions.
(d) Directive Required.--Not later than September 30, 2019, the
Secretary of Defense shall issue a directive for the Department of
Defense describing how Department of Defense entities may access assured
and trusted microelectronics supply chains for Department of Defense
systems.
(e) Report and Certification.--Not later than September 30, 2020,
the Secretary of the Defense shall submit to the congressional defense
committees--
(1) a report on--
(A) the status of the implementation of the strategy
developed under subsection (a);
(B) the actions being taken to achieve full
implementation of such strategy, and a timeline for such
implementation; and

[[Page 2061]]

(C) the status of the implementation of the
directive required by subsection (d); and
(2) a certification of whether the Department of Defense has
an assured means for accessing a sufficient supply of trusted
microelectronics, as required by the strategy developed under
subsection (a).

(f) Definitions.--In this section:
(1) The term ``assured'' refers, with respect to
microelectronics, to the ability of the Department of Defense to
guarantee availability of microelectronics parts at the
necessary volumes and with the performance characteristics
required to meet the needs of the Department of Defense.
(2) The terms ``trust'' and ``trusted'' refer, with respect
to microelectronics, to the ability of the Department of Defense
to have confidence that the microelectronics function as
intended and are free of exploitable vulnerabilities, either
intentionally or unintentionally designed or inserted as part of
the system at any time during its life cycle.
SEC. 232. <>  PILOT PROGRAM ON EVALUATION
OF COMMERCIAL INFORMATION TECHNOLOGY.

(a) Pilot Program.--The Director of the Defense Information Systems
Agency may carry out a pilot program to evaluate commercially available
information technology tools to better understand the potential impact
of such tools on networks and computing environments of the Department
of Defense.
(b) Activities.--Activities under the pilot program may include the
following:
(1) Prototyping, experimentation, operational demonstration,
military user assessments, and other means of obtaining
quantitative and qualitative feedback on the commercial
information technology products.
(2) Engagement with the commercial information technology
industry to--
(A) forecast military requirements and technology
needs; and
(B) support the development of market strategies and
program requirements before finalizing acquisition
decisions and strategies.
(3) Assessment of novel or innovative commercial technology
for use by the Department of Defense.
(4) Assessment of novel or innovative contracting mechanisms
to speed delivery of capabilities to the Armed Forces.
(5) Solicitation of operational user input to shape future
information technology requirements of the Department of
Defense.

(c) Limitation on Availability of Funds.--Of the amounts authorized
to be appropriated for research, development, test, and evaluation,
Defense-wide, for each of fiscal years 2017 through 2022, not more than
$15,000,000 may be expended on the pilot program in any such fiscal
year.
SEC. 233. <>  PILOT PROGRAM FOR THE
ENHANCEMENT OF THE RESEARCH, DEVELOPMENT,
TEST, AND EVALUATION CENTERS OF THE
DEPARTMENT OF DEFENSE.

(a) Pilot Program Required.--
(1) In general.--The Secretary of Defense and the
secretaries of the military departments shall jointly carry out
a

[[Page 2062]]

pilot program to demonstrate methods for the more effective
development of technology and management of functions at
eligible centers.
(2) Eligible centers.--For purposes of the pilot program,
the eligible centers are--
(A) the science and technology reinvention
laboratories, as specified in section 1105(a) of the
National Defense Authorization Act for Fiscal Year 2010
(10 U.S.C. 2358 note);
(B) the test and evaluation centers which are
activities specified as part of the Major Range and Test
Facility Base in Department of Defense Directive
3200.11; and
(C) the Defense Advanced Research Projects Agency.

(b) Selection.--
(1) In general.--The secretaries described in subsection (a)
shall ensure that participation in the pilot program includes--
(A) the Defense Advanced Research Projects Agency;
and
(B) in accordance with paragraph (2)--
(i) five additional eligible centers described
in subparagraph (A) of subsection (a)(2) from each
of the military departments; and
(ii) five additional eligible centers
described in subparagraph (B) of such subsection
from each of the military departments.
(2) Selection procedures.--(A) The head of an eligible
center described in subparagraph (A) or (B) of subsection (a)(2)
seeking to participate in the pilot program shall submit to the
appropriate reviewer an application therefor at such time, in
such manner, and containing such information as the appropriate
reviewer shall specify.
(B) Not later than 120 days after the date of the enactment
of this Act, each appropriate reviewer shall--
(i) evaluate each application received under
subparagraph (A); and
(ii) approve or disapprove of the application.
(C) If the head of an eligible center submits an application
under subparagraph (A) in accordance with the requirements
specified by the appropriate reviewer for purposes of such
subparagraph and the appropriate reviewer neither approves nor
disapproves such application pursuant to subparagraph (B)(ii) on
or before the date that is 120 days after the date of the
enactment of this Act, such eligible center shall be considered
a participant in the pilot program.
(D) For purposes of this paragraph, the appropriate reviewer
is--
(i) in the case of an eligible center described in
subparagraph (A) of subsection (a)(2), the Laboratory
Quality Enhancement Program; and
(ii) in the case of an eligible center described in
subparagraph (B) of such subsection, the Director of the
Test Resource Management Center.

(c) Participation in Program.--
(1) In general.--Subject to paragraph (2), the head of each
eligible center selected under subsection (b)(1) shall propose
and implement alternative and innovative methods of

[[Page 2063]]

effective management and operations of eligible centers, rapid
project delivery, support, experimentation, prototyping, and
partnership with universities and private sector entities to--
(A) generate greater value and efficiencies in
research and development activities;
(B) enable more efficient and effective operations
of supporting activities, such as--
(i) facility management, construction, and
repair;
(ii) business operations;
(iii) personnel management policies and
practices; and
(iv) intramural and public outreach; and
(C) enable more rapid deployment of warfighter
capabilities.
(2) Implementation.--(A) The head of an eligible center
described in subparagraph (A) or (B) of subsection (a)(2) shall
implement each method proposed under paragraph (1) unless such
method is disapproved in writing by the Assistant Secretary
concerned within 60 days of receiving a proposal from an
eligible center selected under subsection (b)(1) by such
Assistant Secretary.
(B) The Director of the Defense Advanced Research Projects
Agency shall implement each method proposed under paragraph (1)
unless such method is disapproved in writing by the Chief
Management Officer within 60 days of receiving a proposal from
the Director.
(C) In this paragraph, the term ``Assistant Secretary
concerned'' means--
(i) the Assistant Secretary of the Air Force for
Acquisition, with respect to matters concerning the Air
Force;
(ii) the Assistant Secretary of the Army for
Acquisition, Technology, and Logistics, with respect to
matters concerning the Army; and
(iii) the Assistant Secretary of the Navy for
Research, Development, and Acquisition, with respect to
matters concerning the Navy.

(d) Waiver Authority for Demonstration and Implementation.--Until
the termination of the pilot program under subsection (e), the head of
an eligible center selected under subsection (b)(1) may waive any
regulation, restriction, requirement, guidance, policy, procedure, or
departmental instruction that would affect the implementation of a
method proposed under subsection (c)(1), unless such implementation
would be prohibited by a provision of a Federal statute or common law.
(e) Termination.--The pilot program shall terminate on September 30,
2022.
(f) Report.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees a report on the pilot
program.
(2) Contents.--The report required by paragraph (1) shall
include the following:
(A) Identification of the eligible centers
participating in the pilot program.
(B) Identification of the eligible centers whose
applications to participate in the pilot program were
disapproved

[[Page 2064]]

under subsection (b), including justifications for such
disapprovals.
(C) A description of the methods implemented
pursuant to subsection (c).
(D) A description of the methods that were proposed
pursuant to paragraph (1) of subsection (c) but
disapproved under paragraph (2) of such subsection.
(E) An assessment of how methods implemented
pursuant to subsection (c) have contributed to the
objectives identified in subparagraphs (A), (B), and (C)
of paragraph (1) of such subsection.
SEC. 234. <>  PILOT PROGRAM ON
MODERNIZATION AND FIELDING OF
ELECTROMAGNETIC SPECTRUM WARFARE SYSTEMS
AND ELECTRONIC WARFARE CAPABILITIES.

(a) Pilot Program.--
(1) In general.--The Secretary of Defense may carry out a
pilot program on the modernization and fielding of
electromagnetic spectrum warfare systems and electronic warfare
systems.
(2) Selection.--If the Secretary carries out the pilot
program under paragraph (1), the Electronic Warfare Executive
Committee shall select from the list described in section
240(b)(4) a total of 10 electromagnetic spectrum warfare systems
and electronic warfare systems across at least two military
departments for modernization and fielding under the pilot
program.

(b) Termination.--The pilot program authorized by subsection (a)
shall terminate on September 30, 2023.
(c) Funding.--For the purposes of this pilot program, funds
authorized to be appropriated for electromagnetic spectrum warfare and
electronic warfare may be used for the development and fielding of
electromagnetic spectrum warfare systems and electronic warfare
capabilities.
(d) Definitions.--In this section:
(1) The term ``electromagnetic spectrum warfare'' means
electronic warfare that encompasses military communications and
sensing operations that occur in the electromagnetic operational
domain.
(2) The term ``electronic warfare'' means military action
involving the use of electromagnetic and directed energy to
control the electromagnetic spectrum or to attack the enemy.
SEC. <>  235. PILOT PROGRAM ON DISCLOSURE
OF CERTAIN SENSITIVE INFORMATION TO
FEDERALLY FUNDED RESEARCH AND DEVELOPMENT
CENTERS.

(a) In General.--The Secretary of Defense shall carry out a pilot
program on--
(1) permitting officers and employees of the Department of
Defense to disclose sensitive information to federally funded
research and development centers of the Department for the sole
purpose of the performance of administrative, technical, or
professional services under and within the scope of the
contracts with the parent organizations of such federally funded
research and development centers; and
(2) appropriately protecting proprietary information from
unauthorized disclosure or use by such centers.

[[Page 2065]]

(b) FFRDCs.--The pilot program shall be carried out with one or more
federally funded research and development centers of the Department
selected by the Secretary for participation in the pilot program.
(c) FFRDC Personnel.--Sensitive information may be disclosed to
personnel of a federally funded research and development center under
the pilot program only if such personnel and contractors agree to be
subject to, and comply with, appropriate ethics standards and
requirements applicable to Government personnel, including the Ethics in
Government Act of 1978, section 1905 of title 18, United States Code,
and chapter 21 of title 41, United States Code.
(d) Conditions on Disclosure.--Sensitive information may be
disclosed under the pilot program only if the federally funded research
and development center concerned and its parent organization agree to
and acknowledge in the parent organization's contract with the
Department of Defense that--
(1) sensitive information furnished to the federally funded
research and development center will be accessed and used only
for the purposes stated in the contract between the parent
organization of the federally funded research and development
center and the Department of Defense;
(2) the federally funded research and development center
will take all precautions necessary to prevent disclosure of the
sensitive information furnished to anyone not authorized access
to the information in order to perform the applicable contract;
(3) sensitive information furnished under the pilot program
shall not be used by the federally funded research and
development center or parent organization to compete against a
third party for a Government or non-Government contract or
funding, or to support other current or future research or
technology development activities performed by the federally
funded research and development center; and
(4) any personnel of a federally funded research and
development center participating in the pilot program may not
disclose or use any trade secrets or any nonpublic information
accessed under the pilot program, unless specifically authorized
by this section.

(e) Duration.--(1) The pilot program may commence at any time after
the review and issuance of policy guidance, updated appropriately,
pertaining to the identification, mitigation, and prevention of
potentially unfair competitive advantage conferred to federally funded
research and development center personnel with access to sensitive
information who serve as technical advisors to acquisition programs.
(2) The pilot program shall terminate on the date that is three
years after the date of the commencement of the pilot program.
(f) Assessment.--Not later than two years after the commencement of
the pilot program, the Comptroller General of the United States shall
submit to the Committees on Armed Services of the Senate and the House
of Representatives a report on the pilot program, including an
assessment of the effectiveness of activities under the pilot program in
improving acquisition processes and the effectiveness of protections of
private-sector intellectual property in the course of such activities.

[[Page 2066]]

(g) Sensitive Information Defined.--In this section, the term
``sensitive information'' means confidential commercial, financial, or
proprietary information, technical data, contract performance, contract
performance evaluation, management, and administration data, or other
privileged information owned by other contractors of the Department of
Defense that is exempt from public disclosure under section 552(b)(4) of
title 5, United States Code, or which would otherwise be prohibited from
disclosure under section 1832 or 1905 of title 18, United States Code.
SEC. 236. <>  PILOT PROGRAM ON ENHANCED
INTERACTION BETWEEN THE DEFENSE ADVANCED
RESEARCH PROJECTS AGENCY AND THE SERVICE
ACADEMIES.

(a) In General.--The Secretary of Defense, acting through the
Director of the Defense Advanced Research Projects Agency, shall carry
out a pilot program to enhance interaction between the Defense Advanced
Research Projects Agency and the service academies to promote technology
transition, education, and training in science, technology, engineering,
and mathematics fields that are relevant to the Department of Defense.
(b) Awards of Funds.--(1) In carrying out the pilot program, the
Secretary, acting through the Director, shall provide funds to
contractors and grantees of the Defense Advanced Research Projects
Agency in order to encourage such contractors and grantees to develop
research partnerships with the service academies to support more
efficient and effective technology transition of research programs and
products.
(2) It shall be the responsibility of the Director to ensure that
such funds are used effectively and that sufficient efforts are made to
build appropriate partnerships.
(c) Service Academy Technology Transition Networks.--In carrying out
the pilot program, the Director shall prioritize the leveraging of--
(1) the technology transition networks that service
academies maintain among their academic departments and resident
research centers; and
(2) partnerships with Department of Defense laboratories,
other Federal degree granting institutions, academia, and
industry.

(d) Termination.--The authority to carry out the pilot program shall
terminate on September 30, 2020.
(e) Service Academies Defined.--In this section, the term ``service
academies'' means the following:
(1) The United States Military Academy.
(2) The United States Naval Academy.
(3) Th United States Air Force Academy.
(4) The United States Coast Guard Academy.
(5) The United States Merchant Marine Academy.
SEC. 237. INDEPENDENT REVIEW OF F/A-18 PHYSIOLOGICAL EPISODES AND
CORRECTIVE ACTIONS.

(a) Independent Review Required.--The Secretary of the Navy shall
conduct an independent review of the plans, programs, and research of
the Department of the Navy with respect to--
(1) physiological events affecting aircrew of the F/A-18
Hornet and the F/A-18 Super Hornet aircraft during the covered
period; and

[[Page 2067]]

(2) the efforts of the Navy and Marine Corps to prevent and
mitigate the affects of such physiological events.

(b) Conduct of Review.--In conducting the review under subsection
(a), the Secretary of the Navy shall--
(1) designate an appropriate senior official in the Office
of the Secretary of the Navy to oversee the review; and
(2) consult experts from outside the Department of Defense
in appropriate technical and medical fields.

(c) Review Elements.--The review under subsection (a) shall include
an evaluation of--
(1) any data of the Department of the Navy relating to the
increased frequency of physiological events affecting aircrew of
the F/A-18 Hornet and the F/A-18 Super Hornet aircraft during
the covered period;
(2) aircraft mishaps potentially related to such
physiological events;
(3) the cost and effectiveness of all material, operational,
maintenance, and other measures carried out by the Department of
the Navy to mitigate such physiological events during the
covered period;
(4) material, operational, maintenance, or other measures
that may reduce the rate of such physiological events in the
future; and
(5) the performance of--
(A) the onboard oxygen generation system in the F/A-
18 Super Hornet;
(B) the overall environmental control system in the
F/A-18 Hornet and F/A-18 Super Hornet; and
(C) other relevant subsystems of the F/A-18 Hornet
and F/A-18 Super Hornet, as determined by the Secretary.

(d) Report Required.--Not later than December 1, 2017, the Secretary
of Navy shall submit to the congressional defense committees a report
that includes the results of the review under subsection (a).
(e) Covered Period.--In this section, the term ``covered period''
means the period beginning on January 1, 2009, and ending on the date of
the submission of the report under subsection (d).
SEC. 238. B-21 BOMBER DEVELOPMENT PROGRAM ACCOUNTABILITY MATRICES.

(a) Submittal of Matrices.--Concurrent with the President's annual
budget request submitted to Congress under section 1105 of title 31,
United States Code, for fiscal year 2018, the Secretary of the Air
Forces shall submit to the congressional defense committees and the
Comptroller General of the United States the matrices described in
subsection (b) relating to the B-21 bomber aircraft program.
(b) Matrices Described.--The matrices described in this subsection
are the following:
(1) EMD goals.--A matrix that identifies, in six month
increments, key milestones, development events, and specific
performance goals for the EMD phase of the B-21 bomber aircraft
program, which shall be subdivided, at a minimum, according to
the following:
(A) Technology readiness levels of major components
and key demonstration events.
(B) Design maturity.

[[Page 2068]]

(C) Software maturity.
(D) Manufacturing readiness levels for critical
manufacturing operations and key demonstration events.
(E) Manufacturing operations.
(F) System verification and key flight test events.
(G) Reliability.
(2) Cost.--A matrix expressing, in six month increments, the
total cost for the Air Force service cost position for the EMD
phase and low initial rate of production lots of the B-21 bomber
aircraft and a matrix expressing the total cost for the prime
contractor's estimate for such EMD phase and production lots,
both of which shall be phased over the entire EMD period and
subdivided according to the costs of the following:
(A) Air vehicle.
(B) Propulsion.
(C) Mission systems.
(D) Vehicle subsystems.
(E) Air vehicle software.
(F) Systems engineering.
(G) Program management.
(H) System test and evaluation.
(I) Support and training systems.
(J) Contract fee.
(K) Engineering changes.
(L) Direct mission support, including Congressional
General Reductions.
(M) Government testing.

(c) Semiannual Update of Matrices.--
(1) In general.--Not later than 180 days after the date on
which the Secretary of the Air Force submits the matrices
required by subsection (a), concurrent with the submittal of
each annual budget request to Congress under section 1105 of
title 31, United States Code, thereafter, and not later than 180
days after each such submittal, the Secretary of the Air Force
shall submit to the congressional defense committees and the
Comptroller General of the United States updates to the matrices
described in subsection (b).
(2) Elements.--Each update submitted under paragraph (1)
shall detail progress made toward the goals identified in the
matrix described in subsection (b)(1) and provide updated cost
estimates.
(3) Treatment of initial matrices as baseline.--The matrices
submitted pursuant to subsection (a) shall be treated as the
baseline for the full EMD phase and low rate initial production
of the B-21 bomber aircraft program for purposes of the updates
submitted pursuant to paragraph (1) of this subsection.

(d) Assessment by Comptroller General of the United States.--Not
later than the date that is 45 days after the date on which the
Comptroller General of the United States receives an update to a matrix
under subsection (d)(1), the Comptroller General shall review the
sufficiency of such matrix and submit to the congressional defense
committees an assessment of such matrix, including by identifying cost,
schedule, or performance trends.

[[Page 2069]]

SEC. 239. STUDY ON HELICOPTER CRASH PREVENTION AND MITIGATION
TECHNOLOGY.

(a) Study Required.--The Secretary of Defense shall seek to enter
into a contract with a federally funded research and development center
to conduct a study on technologies with the potential to prevent and
mitigate helicopter crashes.
(b) Elements.--The study required under subsection (a) shall include
the following:
(1) Identification of technologies with the potential--
(A) to prevent helicopter crashes (such as collision
avoidance technologies and battle space and terrain
situational awareness technologies); and
(B) to improve survivability among individuals
involved in such crashes (such as adaptive flight
control technologies and improved energy absorbing
technologies).
(2) A cost-benefit analysis of each technology identified
under paragraph (1) that takes into account the cost of
developing and deploying the technology compared to the
potential of the technology to prevent casualties or injuries.
(3) A list that ranks the technologies identified under
paragraph (1) based on--
(A) the results of the cost-benefit analysis under
paragraph (2); and
(B) the readiness level of each technology.
(4) An analysis of helicopter crashes that--
(A) compares the casualty rates of cockpit occupants
to the casualty rates of occupants of cargo compartments
and troop seats; and
(B) identifies the root causes of the casualties
described in subparagraph (A).

(c) Briefing.--Not later than one year after the date of the
enactment of this Act, the Secretary shall provide to the Committees on
Armed Services of the Senate and the House of Representatives (and the
other congressional defense committees on request) a briefing that
includes--
(1) the results of the study required under subsection (a);
and
(2) the list described in subsection (b)(3).
SEC. 240. STRATEGY FOR IMPROVING ELECTRONIC AND ELECTROMAGNETIC
SPECTRUM WARFARE CAPABILITIES.

(a) Strategy Required.--Not later than April 1, 2017, the Under
Secretary of Defense for Acquisition, Technology and Logistics, acting
through the Electronic Warfare Executive Committee, shall submit to the
congressional defense committees a strategy on the electronic and
electromagnetic spectrum warfare capabilities of the Department of
Defense.
(b) Elements.--The strategy required by subsection (a) shall include
the following:
(1) A strategy for advancing and accelerating research,
development, test, and evaluation, and fielding, of electronic
warfare capabilities to meet current and projected requirements,
including intra-service ground and air interoperabilities, as
well as recommendations for streamlining acquisition processes
with respect to such capabilities.
(2) A methodology for synchronizing and overseeing
electronic warfare strategies, operational concepts, and
programs

[[Page 2070]]

across the Department of Defense, including electronic warfare
programs that support or enable cyber operations.
(3) A description of the training and operational support
required for fielding and sustaining current and planned
investments in electronic warfare capabilities, including the
requirements for conducting large-scale simulated exercises and
training in contested electronic warfare environments.
(4) A comprehensive list of investments of the Department of
Defense in electronic warfare capabilities, including the
capabilities to be developed, procured, or sustained in--
(A) the budget of the President for fiscal year 2018
submitted to Congress under section 1105(a) of title 31,
United States Code; and
(B) the future-years defense program submitted to
Congress under section 221 of title 10, United States
Code, for that fiscal year.
(5) A description of the threat environment for
electromagnetic spectrum for current and future warfare needs.
(6) An assessment of progress on increasing interoperability
between Services and Agencies, as well as increasing application
of innovative electromagnetic spectrum warfighting methods and
operational concepts that provide advantages within the
electromagnetic spectrum operational domain.
(7) Specific attributes needed in future electronic and
electromagnetic spectrum warfare capabilities, such as
networking, adaptability, agility, multifunctionality, and
miniaturization, and progress toward incorporating such
attributes in new electronic warfare systems.
(8) Capability gaps with respect to asymmetric and near-peer
adversaries identified pursuant to a capability gap assessment.
(9) A joint strategy on achieving near real-time system
adaption to rapidly advancing modern digital electronics.
(10) Any other information the Secretary determines to be
appropriate.

(c) Form.--The strategy required by subsection (a) shall be
submitted in unclassified form, but may include a classified annex.
(d) Electronic Warfare Executive Committee Defined.--In this section
the term ``Electronic Warfare Executive Committee'' means the committee
established on March 17, 2015, and chartered on August 11, 2015, by the
Deputy Secretary of Defense to serve as the principal forum within the
Department of Defense to inform, coordinate, and evaluate electronic
warfare matters to maintain a strong technological advantage in United
States capabilities.
SEC. 241. SENSE OF CONGRESS ON DEVELOPMENT AND FIELDING OF FIFTH
GENERATION AIRBORNE SYSTEMS.

(a) Findings.--Congress makes the following findings:
(1) The term ``fifth generation'', with respect to airborne
systems, means those airborne systems capable of operating
effectively in highly contested battle spaces defined by the
most capable currently fielded threats, and those reasonably
expected to be operational in the foreseeable future.
(2) Continued modernization of Department of Defense
airborne systems such as fighters, bombers, and intelligence,
surveillance, and reconnaissance (ISR) aircraft with fifth
generation capabilities is required because--

[[Page 2071]]

(A) adversary integrated air defense systems (IADS)
have created regions where fourth generation airborne
systems may be limited in their ability to effectively
operate;
(B) adversary aircraft, air-to-air missiles, and
airborne electronic attack or electronic protection
systems are advancing beyond the capabilities of fourth
generation airborne systems; and
(C) fifth generation airborne systems provide a
wider variety of options for a given warfighting
challenge, preserve the technological advantage of the
United States over near-peer threats, and serve as a
force multiplier by increasing situational awareness and
combat effectiveness of fourth generation airborne
systems.

(b) Sense of Congress.--It is the sense of Congress that development
and fielding of fifth generation airborne system systems should include
the following:
(1) Multispectral (radar, infrared, visual, emissions) low
observable (LO) design features, self-protection jamming, and
other capabilities that significantly delay or deny threat
system detection, tracking, and engagement.
(2) Integrated avionics that autonomously fuse and
prioritize onboard multispectral sensors and offboard
information data to provide an accurate realtime operating
picture and data download for postmission exploitation and
analysis.
(3) Resilient communications, navigation, and identification
techniques designed to effectively counter adversary attempts to
deny or confuse friendly systems.
(4) Robust and secure networks linking individual platforms
to create a common, accurate, and highly integrated picture of
the battle space for friendly forces.
(5) Advanced onboard diagnostics capable of monitoring
system health, accurately reporting system faults, and
increasing overall system performance and reliability.
(6) Integrated platform and subsystem designs to maximize
lethality and survivability while enabling decision superiority.
(7) Maximum consideration for the fielding of unmanned
platforms either employed in concert with fifth generation
manned platforms or as standalone unmanned platforms, to
increase warfighting effectiveness and reduce risk to personnel
during high risk missions.
(8) Advanced air-to-air, air-to-ground, and other weapons
able to leverage fifth generation capabilities.
(9) Comprehensive and high-fidelity live, virtual, and
constructive training systems, updated range infrastructure, and
sufficient threat-representative adversary training assets to
maximize fifth generation force proficiency, effectiveness, and
readiness while protecting sensitive capabilities.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Authorization of appropriations.

Subtitle B--Energy and Environment

Sec. 311. Modified reporting requirement related to installations energy
management.

[[Page 2072]]

Sec. 312. Waiver authority for alternative fuel procurement requirement.
Sec. 313. Utility data management for military facilities.
Sec. 314. Alternative technologies for munitions disposal.
Sec. 315. Report on efforts to reduce high energy costs at military
installations.
Sec. 316. Sense of Congress on funding decisions relating to climate
change.

Subtitle C--Logistics and Sustainment

Sec. 321. Revision of deployability rating system and planning reform.
Sec. 322. Revision of guidance relating to corrosion control and
prevention executives.
Sec. 323. Pilot program for inclusion of certain industrial plants in
the Armament Retooling and Manufacturing Support Initiative.
Sec. 324. Repair, recapitalization, and certification of dry docks at
naval shipyards.
Sec. 325. Private sector port loading assessment.
Sec. 326. Strategy on revitalizing Army organic industrial base.

Subtitle D--Reports

Sec. 331. Modifications to Quarterly Readiness Report to Congress.
Sec. 332. Report on average travel costs of members of the reserve
components.
Sec. 333. Report on HH-60G sustainment and Combat Rescue Helicopter
program.

Subtitle E--Other Matters

Sec. 341. Air navigation matters.
Sec. 342. Contract working dogs.
Sec. 343. Plan, funding documents, and management review relating to
explosive ordnance disposal.
Sec. 344. Process for communicating availability of surplus ammunition.
Sec. 345. Mitigation of risks posed by window coverings with accessible
cords in certain military housing units.
Sec. 346. Access to military installations by transportation companies.
Sec. 347. Access to wireless high-speed Internet and network connections
for certain members of the Armed Forces.
Sec. 348. Limitation on availability of funds for Office of the Under
Secretary of Defense for Intelligence.
Sec. 349. Limitation on development and fielding of new camouflage and
utility uniforms.
Sec. 350. Plan for improved dedicated adversary air training enterprise
of the Air Force.
Sec. 351. Independent review and assessment of the Ready Aircrew Program
of the Air Force.
Sec. 352. Study on space-available travel system of the Department of
Defense.
Sec. 353. Evaluation of motor carrier safety performance and safety
technology.

Subtitle A--Authorization of Appropriations

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 2017
for the use of the Armed Forces and other activities and agencies of the
Department of Defense for expenses, not otherwise provided for, for
operation and maintenance, as specified in the funding table in section
4301.

Subtitle B--Energy and Environment

SEC. 311. MODIFIED REPORTING REQUIREMENT RELATED TO INSTALLATIONS
ENERGY MANAGEMENT.

Subsection (a) of section 2925 of title 10, United States Code, is
amended--
(1) in the subsection heading, by inserting ``, Resiliency,
and Mission Assurance'' after ``Annual Report Related to
Installations Energy Management'';
(2) by striking paragraphs (2), (3), (4), (5), (6), (7),
(8), and (10);

[[Page 2073]]

(3) by redesignating paragraphs (9) and (11) as paragraphs
(3), and (4), respectively; and
(4) by inserting after paragraph (1), the following:
``(2) A description of the energy savings, return on
investment, and enhancements to installation mission assurance
realized by the fulfillment of the goals described in paragraph
(1).''.
SEC. 312. <>  WAIVER AUTHORITY FOR
ALTERNATIVE FUEL PROCUREMENT REQUIREMENT.

(a) In General.--The Secretary of Defense may waive the requirement
under section 526 of the Energy Independence and Security Act of 2007
(Public Law 110-140; 42 U.S.C. 17142) if the Secretary determines it is
in the national security interest of the United States.
(b) Notification Requirement.--The Secretary of Defense shall notify
the congressional defense committees not later than 15 days after
exercising the waiver authority under subsection (a).
SEC. 313. <>  UTILITY DATA MANAGEMENT FOR
MILITARY FACILITIES.

(a) Pilot Program.--The Secretary of Defense, in consultation with
the Secretary of Energy, may carry out a pilot program to investigate
the use of utility data management services to perform utility bill
aggregation, analysis, third-party payment, storage, and distribution
for the Department of Defense.
(b) Use of Funds.--Of the funds authorized to be appropriated by
this Act or otherwise made available for fiscal year 2017 for operation
and maintenance, Navy, for enterprise information, not more than
$250,000 may be obligated or expended to carry out the pilot program
under subsection (a).
SEC. 314. <>  ALTERNATIVE
TECHNOLOGIES FOR MUNITIONS DISPOSAL.

In carrying out the disposal of munitions in the stockpile of
conventional munitions awaiting demilitarization and disposal, the
Secretary of the Army may use cost-competitive technologies that
minimize waste generation and air emissions as alternatives to disposal
by open burning, open detonation, direct contact combustion, and
incineration.
SEC. 315. REPORT ON EFFORTS TO REDUCE HIGH ENERGY COSTS AT
MILITARY INSTALLATIONS.

(a) Report.--
(1) Report required.--Not later than 270 days after the date
of the enactment of this Act, the Under Secretary of Defense for
Acquisition, Technology, and Logistics, in conjunction with the
assistant secretaries responsible for installations and
environment for the military services and the Defense Logistics
Agency, shall submit to the congressional defense committees a
report detailing the efforts to achieve cost savings at military
installations with high levels of energy intensity.
(2) Elements.--The report required under paragraph (1) shall
include the following elements:
(A) A comprehensive, installation-specific
assessment of feasible and mission-appropriate energy
initiatives supporting energy production and consumption
at military installations with high levels of energy
intensity.

[[Page 2074]]

(B) An assessment of current sources of energy in
areas with high energy costs and potential future
sources that are technologically feasible, cost-
effective, and mission-appropriate for military
installations.
(C) A comprehensive implementation strategy to
include required investment for feasible energy
efficiency options determined to be the most beneficial
and cost-effective, where appropriate, and consistent
with Department of Defense priorities.
(D) An explanation of how military services are
working collaboratively in order to leverage lessons
learned on potential energy efficiency solutions.
(E) An assessment of the extent to which activities
administered under the Federal Energy Management Program
could be used to assist with the implementation
strategy.
(F) An assessment of State and local partnership
opportunities that could achieve efficiency and cost
savings, and any legislative authorities required to
carry out such partnerships or agreements.
(3) Coordination with state and local and other entities.--
In preparing the report required under paragraph (1), the Under
Secretary may work in conjunction and coordinate with the States
containing areas of high levels of energy intensity, local
communities, and other Federal departments and agencies.

(b) Definitions.--In this section, the term ``high levels of energy
intensity'' means costs for the provision of energy by kilowatt of
electricity or British thermal unit of heat or steam for a military
installation in the United States that is in the highest 20 percent of
all military installations for a military department.
SEC. 316. SENSE OF CONGRESS ON FUNDING DECISIONS RELATING TO
CLIMATE CHANGE.

It is the sense of Congress that--
(1) decisions relating to the funding of the Department of
Defense for fiscal year 2017 should prioritize the support and
enhancement of the combat capabilities of the Department, in
addition to seeking efficiency and efficacy;
(2) funds should be allocated among the programs of the
Department in the manner that best serves the national security
interests of the United States; and
(3) decisions relating to energy efficiency, energy use, and
climate change should adhere to the principles described in
paragraphs (1) and (2).

Subtitle C--Logistics and Sustainment

SEC. 321. REVISION OF DEPLOYABILITY RATING SYSTEM AND PLANNING
REFORM.

(a) Deployment Prioritization and Readiness.--
(1) In general.--Chapter 1003 of title 10, United States
Code, is amended by inserting after section 10102 the following
new section:

[[Page 2075]]

``Sec. 10102a. <>  Deployment prioritization
and readiness of Army components

``(a) Deployment Prioritization.--The Secretary of the Army shall
maintain a system for identifying the priority of deployment for units
of all components of the Army.
``(b) Deployability Readiness Rating.--The Secretary of the Army
shall maintain a readiness rating system for units of all components of
the Army that provides an accurate assessment of the deployability of a
unit and those shortfalls of a unit that require the provision of
additional resources. The system shall ensure--
``(1) that the personnel readiness rating of a unit
reflects--
``(A) both the percentage of the overall personnel
requirement of the unit that is manned and deployable
and the fill and deployability rate for critical
occupational specialties necessary for the unit to carry
out its basic mission requirements; and
``(B) the number of personnel in the unit who are
qualified in their primary military occupational
specialty; and
``(2) that the equipment readiness assessment of a unit--
``(A) documents all equipment required for
deployment;
``(B) reflects only that equipment that is directly
possessed by the unit;
``(C) specifies the effect of substitute items; and
``(D) assesses the effect of missing components and
sets on the readiness of major equipment items.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 1003 of such <> title is amended by inserting after the item relating to
section 10102 the following new item:

``10102a. Deployment prioritization and readiness of Army components.''.

(b) Repeal of Superseded Provisions of Law.--Sections 1121 and 1135
of the Army National Guard Combat Readiness Reform Act of 1992 (title XI
of Public Law 102-484; 10 U.S.C. 10105 note) are repealed.
SEC. 322. <>  REVISION OF GUIDANCE
RELATING TO CORROSION CONTROL AND
PREVENTION EXECUTIVES.

(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the Under Secretary of Defense for Acquisition,
Technology, and Logistics, in coordination with the Director of
Corrosion Policy and Oversight for the Department of Defense, shall
revise guidance relating to corrosion control and prevention executives
to--
(1) clarify the role of each such executive with respect to
assisting the Office of Corrosion Policy and Oversight in
holding the appropriate project management office in each
military department accountable for submitting the annual report
required under section 903(b)(5) of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 (Public Law 110-
417; 10 U.S.C. 2228 note); and
(2) ensure that corrosion control and prevention executives
emphasize the reduction of corrosion and the effects of
corrosion on the military equipment and infrastructure of the
Department

[[Page 2076]]

of Defense, as required in the long-term strategy of the
Department of Defense under section 2228(d) of title 10, United
States Code.

(b) Corrosion Control and Prevention Executive Defined.--In this
section, the term ``corrosion control and prevention executive'' means
the employee of a military department designated as the corrosion
control and prevention executive of the department under section 903(a)
of the Duncan Hunter National Defense Authorization Act for Fiscal Year
2009 (Public Law 110-417; 10 U.S.C. 2228 note).
SEC. 323. <>  PILOT PROGRAM FOR INCLUSION
OF CERTAIN INDUSTRIAL PLANTS IN THE
ARMAMENT RETOOLING AND MANUFACTURING
SUPPORT INITIATIVE.

During the five-year period beginning on the date of the enactment
of this Act, the Secretary of Defense may treat a Government-owned,
contractor-operated industrial plant of the Department of Defense as an
eligible facility under section 4551(2) of title 10, United States Code.
SEC. 324. REPAIR, RECAPITALIZATION, AND CERTIFICATION OF DRY DOCKS
AT NAVAL SHIPYARDS.

(a) Special Authority to Transfer Authorizations.--In addition to
the authority to transfer funds provided under section 1001, the
Secretary of Defense may transfer not more than $250,000,000 of
authorizations made available to the Department of Defense in this Act
for fiscal year 2017 to the Department of the Navy for the repair,
recapitalization, and certification of dry docks at Government-owned,
Government-operated shipyards of the Navy.
(b) Notice to Congress.--The Secretary shall promptly notify
Congress of each transfer made under subsection (a).
(c) Terms and Conditions.--
(1) In general.--Except as provided in paragraph (2),
transfers under this section shall be subject to the same terms
and conditions as transfers under section 1001.
(2) Effect on dollar limit.--A transfer of funds under this
section shall not be counted toward the dollar limitation
described in section 1001(a)(2).
SEC. 325. PRIVATE SECTOR PORT LOADING ASSESSMENT.

(a) Assessments Required.--During the period beginning on the date
of the enactment of this Act and ending on the date of the final
briefing under subsection (c), the Secretary of the Navy shall conduct
quarterly assessments of naval ship maintenance and loading activities
carried out by private sector entities at each covered port.
(b) Elements of Assessments.--Each assessment under subsection (a)
shall include, with respect to each covered port, the following:
(1) Resources per day, including daily ship availabilities
and the workforce available to carry out maintenance and loading
activities, for the fiscal year preceding the quarter covered by
the assessment through the end of such quarter.
(2) Projected resources per day, including daily ship
availabilities and the workforce available to carry out
maintenance and loading activities, through the end of the
second fiscal year beginning after the quarter covered by the
assessment.

[[Page 2077]]

(3) A description of the methods by which the Secretary
communicates projected workloads to private sector entities
engaged in ship maintenance activities and ship loading
activities.
(4) A description of any processes that have been
implemented to allow for timely feedback from private sector
entities engaged in ship maintenance activities and ship loading
activities.

(c) Briefings Required.--Not later than 30 days after the date of
the enactment of this Act, and on a quarterly basis thereafter until
September 30, 2021, the Secretary shall provide to the Committees on
Armed Services of the Senate and House of Representatives (and other
congressional defense committees on request)--
(1) a briefing on the results of the assessments conducted
under subsection (a); and
(2) a chart depicting the information described in
paragraphs (1) and (2) of subsection (b) with respect to each
covered port.

(d) Covered Ports.--In this section, the term ``covered ports''
means port facilities used by the Department of Defense in each of the
following locations:
(1) Mayport, Florida.
(2) Norfolk, Virginia.
(3) Pearl Harbor, Hawaii.
(4) Puget Sound, Washington.
(5) San Diego, California.
SEC. 326. STRATEGY ON REVITALIZING ARMY ORGANIC INDUSTRIAL BASE.

(a) Strategy.--Not later than October 1, 2017, the Secretary of Army
shall submit to the congressional defense committees a strategy to
revitalize the organic industrial base of the Army.
(b) Elements.--The strategy under subsection (a) shall include, with
respect to the organic industrial base of the Army, the following:
(1) A plan to ensure the long-term viability of the organic
industrial base.
(2) An assessment of legacy items of the Army that are
sustained by the Defense Logistics Agency.
(3) A description of how the organic industrial base may be
used to address diminishing manufacturing sources and material
shortages.
(4) A description of critical capabilities that are required
across the organic industrial base.
(5) An assessment of infrastructure across the organic
industrial base.
(6) An assessment of manufacturing sources in the organic
industrial base and the private sector.
(7) An explanation of how contracting may be used to meet
organic industrial base requirements.
(8) An assessment of current and future workloads across the
organic industrial base.
(9) An assessment of the processes used to identify critical
capabilities for the organic industrial base and the methods
used to determine workloads.
(10) An assessment of existing labor rates.

[[Page 2078]]

(11) A description of manufacturing skills that are needed
to sustain readiness.
(12) A description of how public-private partnerships may be
used to improve the organic industrial base.
(13) A description of how working capital funds may be used
to improve the organic industrial base.
(14) An assessment of operating expenses and the potential
for reducing or recovering such expenses.
(15) Identification of the tooling, equipment, and
facilities upgrades necessary for a facility in the organic
industrial base to manufacture the legacy items of the Defense
Logistics Agency, including items described in section 333(a) of
the National Defense Authorization Act for Fiscal Year 2016
(Public Law 114-92; 129 Stat. 792).
(16) An assessment of the suitability of manufacturing the
legacy items of the Defense Logistics Agency in a facility in
the organic industrial base.

(c) Definitions.--In this section:
(1) Legacy items.--The term ``legacy items'' means
manufactured items that are no longer produced by the private
sector but continue to be used for weapons systems of the
Department of Defense, but does not include information systems
and information technology (as those terms are defined in
section 11101 of title 40, United States Code).
(2) Organic industrial base.--The term ``organic industrial
base'' means United States military facilities, including
arsenals, depots, munition plants and centers, and storage
sites, that advance a vital national security interest by
producing, maintaining, repairing, and storing materiel,
munitions, and hardware.

Subtitle D--Reports

SEC. 331. MODIFICATIONS TO QUARTERLY READINESS REPORT TO CONGRESS.

(a) Deadline for Report.--Subsection (a) of section 482 of title 10,
United States Code, is amended by striking ``Not later than 45 days
after the end of each calendar-year quarter'' and inserting ``Not later
than 30 days after the end of each calendar-year quarter''.
(b) Elimination of Reporting Requirements Related to Prepositioned
Stocks and National Guard Civil Support Mission Readiness.--Such section
is further amended--
(1) in subsection (a), by striking ``subsections (b), (d),
(e), (f), (g), (h), and (i)'' and inserting ``subsections (b),
(d), (e), (f), and (g)'';
(2) by striking subsections (d) and (e); and
(3) by redesignating subsections (f), (g), (h), (i), and (j)
as subsections (d), (e), (f), (g), and (i) respectively.

(c) Inclusion of Information on Cannibalization Rates.--Such
section, as amended by subsection (b), is further amended by inserting
after subsection (g), as redesignated by paragraph (3) of such
subsection (b), the following new subsection:
``(h) Cannibalization Rates.--Each report under this section shall
include a separate unclassified report containing the information
collected pursuant to section 117(c)(7) of this title.''.

[[Page 2079]]

SEC. 332. REPORT ON AVERAGE TRAVEL COSTS OF MEMBERS OF THE RESERVE
COMPONENTS.

Not later than 180 days after the date of the enactment of this Act,
the Comptroller General of the United States shall submit to the
congressional defense committees a report on the travel expenses of
members of reserve components associated with performing active duty
service, active service, full-time National Guard duty, active Guard and
Reserve duty, and inactive-duty training, as such terms are defined in
section 101(d) of title 10, United States Code. Such report shall
include the average annual cost for all travel expenses for a member of
a reserve component.
SEC. 333. REPORT ON HH-60G SUSTAINMENT AND COMBAT RESCUE
HELICOPTER PROGRAM.

(a) Report on Sustainment Plan.--Not later than one year after the
date of the enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees a report that sets forth a plan
to modernize, sustain training, and conduct depot-level maintenance and
repair for all components of the HH-60 helicopter fleet until total
force combat rescue units have been fully equipped with HH-60W Combat
Rescue Helicopters.
(b) Elements.--The report required by subsection (a) shall include a
description of the plans of the Air Force--
(1) to modernize legacy HH-60G combat rescue helicopters;
(2) to maintain the training pipeline for the HH-60G aircrew
and the maintenance force required to maintain full readiness
through the end of fiscal year 2029; and
(3) to carry out depot-level maintenance and repair (as that
term is defined in section 2460 of title 10, United States Code)
to ensure the legacy HH-60G fleet of helicopters is maintained
to meet readiness rates through the end of fiscal year 2029.

(c) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may include a classified annex.

Subtitle E--Other Matters

SEC. 341. AIR NAVIGATION MATTERS.

(a) Expansion of Definition of Structures Interfering With Air
Commerce and National Defense.--
(1) Notice.--Section 44718(a) of title 49, United States
Code, is amended--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; or''; and
(C) by adding at the end the following:
``(3) the interests of national security, as determined by
the Secretary of Defense.''.
(2) Studies.--Section 44718(b) of title 49, United States
Code, is amended to read as follows:

``(b) Studies.--
``(1) In general.--Under regulations prescribed by the
Secretary, if the Secretary decides that constructing or
altering a structure may result in an obstruction of the
navigable airspace, an interference with air navigation
facilities and equipment or the navigable airspace, or, after
consultation with

[[Page 2080]]

the Secretary of Defense, an adverse impact on military
operations and readiness, the Secretary of Transportation shall
conduct an aeronautical study to decide the extent of any
adverse impact on the safe and efficient use of the airspace,
facilities, or equipment. In conducting the study, the Secretary
shall--
``(A) consider factors relevant to the efficient and
effective use of the navigable airspace, including--
``(i) the impact on arrival, departure, and en
route procedures for aircraft operating under
visual flight rules;
``(ii) the impact on arrival, departure, and
en route procedures for aircraft operating under
instrument flight rules;
``(iii) the impact on existing public-use
airports and aeronautical facilities;
``(iv) the impact on planned public-use
airports and aeronautical facilities;
``(v) the cumulative impact resulting from the
proposed construction or alteration of a structure
when combined with the impact of other existing or
proposed structures; and
``(vi) other factors relevant to the efficient
and effective use of navigable airspace; and
``(B) include the finding made by the Secretary of
Defense under subsection (f).
``(2) Report.--On completing the study, the Secretary of
Transportation shall issue a report disclosing the extent of
the--
``(A) adverse impact on the safe and efficient use
of the navigable airspace that the Secretary finds will
result from constructing or altering the structure; and
``(B) unacceptable risk to the national security of
the United States, as determined by the Secretary of
Defense under subsection (f).
``(3) Severability.--A determination by the Secretary of
Transportation on hazard to air navigation under this section
shall remain independent of a determination of unacceptable risk
to the national security of the United States by the Secretary
of Defense under subsection (f).''.
(3) National security finding; definitions.--Section 44718
of title 49, United States Code, is amended by adding at the end
the following:

``(f) National Security Finding.--As part of an aeronautical study
conducted under subsection (b), the Secretary of Defense shall--
``(1) make a finding on whether the construction,
alteration, establishment, or expansion of a structure or
sanitary landfill included in the study would result in an
unacceptable risk to the national security of the United States;
and
``(2) transmit the finding to the Secretary of
Transportation for inclusion in the report required under
subsection (b)(2).

``(g) Definitions.--In this section, the following definitions
apply:
``(1) Adverse impact on military operations and readiness.--
The term `adverse impact on military operations and readiness'
has the meaning given the term in section 211.3

[[Page 2081]]

of title 32, Code of Federal Regulations, as in effect on
January 6, 2014.
``(2) Unacceptable risk to the national security of the
united states.--The term `unacceptable risk to the national
security of the United States' has the meaning given the term in
section 211.3 of title 32, Code of Federal Regulations, as in
effect on January 6, 2014.''.
(4) Conforming amendments.--
(A) Section heading.--Section 44718 of title 49,
United States Code, is amended in the section heading by
inserting ``or national security'' after ``air
commerce''.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 447 of title 49, United States
Code, is <> amended by
striking the item relating to section 44718 and
inserting the following:

``44718. Structures interfering with air commerce or national
security.''.

(b) Performance-based Navigation.--Section 213(c) of the FAA
Modernization and Reform Act of 2012 (Public Law 112-95; 49 U.S.C. 40101
note) is amended by adding at the end the following:
``(3) Notifications and consultations.--Not later than 90
days before applying a categorical exclusion under this
subsection to a new procedure at an OEP airport, the
Administrator shall--
``(A) notify and consult with the operator of the
airport at which the procedure would be implemented; and
``(B) consider consultations or other engagement
with the community in the which the airport is located
to inform the public of the procedure.
``(4) Review of certain categorical exclusions.--
``(A) In general.--The Administrator shall review
any decision of the Administrator made on or after
February 14, 2012, and before the date of the enactment
of this paragraph to grant a categorical exclusion under
this subsection with respect to a procedure to be
implemented at an OEP airport that was a material change
from procedures previously in effect at the airport to
determine if the implementation of the procedure had a
significant effect on the human environment in the
community in which the airport is located.
``(B) Content of review.--If, in conducting a review
under subparagraph (A) with respect to a procedure
implemented at an OEP airport, the Administrator, in
consultation with the operator of the airport,
determines that implementing the procedure had a
significant effect on the human environment in the
community in which the airport is located, the
Administrator shall--
``(i) consult with the operator of the airport
to identify measures to mitigate the effect of the
procedure on the human environment; and
``(ii) in conducting such consultations,
consider the use of alternative flight paths that
do not substantially degrade the efficiencies
achieved by the implementation of the procedure
being reviewed.

[[Page 2082]]

``(C) Human environment defined.--In this paragraph,
the term `human environment' has the meaning given such
term in section 1508.14 of title 40, Code of Federal
Regulations (as in effect on the day before the date of
the enactment of this paragraph).''.
SEC. 342. CONTRACT WORKING DOGS.

(a) Required Contract Clause.--
(1) In general.--Chapter 141 of title 10, United States
Code, is amended by adding at the end the following new section:
``Sec. 2410r. <>  Contract working dogs:
requirement to transfer animals to 341st
Training Squadron after service life

``(a) In General.--Each contract entered into by the Secretary of
Defense for the provision of a contract working dog shall require that
the dog be transferred to the 341st Training Squadron after the service
life of the dog has terminated as described in subsection (b) for
reclassification as a military animal and placement for adoption in
accordance with section 2583 of this title.
``(b) Service Life.--The service life of a contract working dog has
terminated and the dog is available for transfer to the 341st Training
Squadron pursuant to a contract under subsection (a) only if the
contracting officer concerned has determined that--
``(1) the final contractual obligation of the dog preceding
such transfer is with the Department of Defense; and
``(2) the dog cannot be used by another department or agency
of the Federal Government due to age, injury, or performance.

``(c) Contract Working Dog.--In this section, the term `contract
working dog' means a dog--
``(1) that performs a service for the Department of Defense
pursuant to a contract; and
``(2) that is trained and kenneled by an entity that
provides such a dog pursuant to such a contract.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter <> is amended
by adding at the end the following new item:

``2410r. Contract working dogs: requirement to transfer animals to 341st
Training Squadron after service life.''.

(b) Inclusion in Definition of Military Animal.--Paragraph (1) of
section 2583(h) of title 10, United States Code, is amended to read as
follows:
``(1) A military working dog, which may include a contract
working dog (as such term is defined in section 2410r) that has
been transferred to the 341st Training Squadron.''.
SEC. 343. <>  PLAN, FUNDING DOCUMENTS,
AND MANAGEMENT REVIEW RELATING TO
EXPLOSIVE ORDNANCE DISPOSAL.

(a) Plan Required.--
(1) In general.--The Secretary of Defense shall develop a
plan to establish an explosive ordnance disposal program in the
Department of Defense to ensure close and continuous
coordination among the military departments on matters relating
to explosive ordnance disposal.
(2) Roles, responsibilities, and authorities.--The plan
under paragraph (1) shall include provisions under which--

[[Page 2083]]

(A) the Secretary of Defense shall--
(i) assign responsibility for the coordination
and integration of explosive ordnance disposal to
a joint office or entity in the Office of the
Secretary of Defense; and
(ii) designate the Secretary of the Navy (or a
designee of the Secretary of the Navy) as the
executive agent for the Department of Defense to
coordinate and integrate research, development,
test, and evaluation activities and procurement
activities of the military departments relating to
explosive ordnance disposal; and
(B) the Secretary of each military department shall
assess the needs of the military department concerned
with respect to explosive ordnance disposal and may
carry out research, development, test, and evaluation
activities and procurement activities to address such
needs.

(b) Annual Explosive Ordnance Disposal Funding Documents.--
(1) In general.--The Secretary of Defense shall submit to
Congress, as a part of the defense budget materials for each
fiscal year after fiscal year 2017, a consolidated funding
display, in classified and unclassified form, that identifies
the funding source for all explosive ordnance disposal
activities within the Department of Defense.
(2) Elements.--The funding display under paragraph (1) for a
fiscal year shall include a single program element from each
military department for each of the following:
(A) Research, development, test, and evaluation.
(B) Procurement.
(C) Operation and maintenance.
(D) Any other program element used to fund explosive
ordnance disposal activities (but not including any
program element relating to military construction).

(c) Management Review and Assessment.--
(1) In general.--The Secretary of Defense shall review and
assess the effectiveness of current management structures in
supporting the explosive ordnance disposal needs of the
combatant commands and the military departments.
(2) Elements.--The review and assessment under paragraph (1)
shall include the following:
(A) A review of the organizational structures and
responsibilities within the Office of the Secretary of
Defense that provide policy and oversight of the
policies, programs, acquisition activities, and
personnel of the military departments relating to
explosive ordnance disposal.
(B) A review of the organizational structures and
responsibilities within the military departments that--
(i) man, equip, and train explosive ordnance
disposal forces; and
(ii) support such forces with manpower,
technology, equipment, and readiness.
(C) A review of the organizational structures and
responsibilities of the Secretary of the Navy as the
executive agent for explosive ordnance disposal
technology and training.

[[Page 2084]]

(D) Budget displays for each military department
that support research, development, test, and
evaluation; procurement; and operation and maintenance,
relating to explosive ordnance disposal.
(E) An assessment of the adequacy of the
organizational structures and responsibilities and the
alignment of funding within the military departments in
supporting the needs of the combatant commands and the
military departments with respect to explosive ordnance
disposal.

(d) Briefing.--Not later than March 1, 2017, the Secretary shall
provide to the Committees on Armed Services of the Senate and the House
of Representatives a briefing that includes--
(1) details of the plan required under subsection (a);
(2) the results of the review and assessment under
subsection (c);
(3) a description of any measures undertaken to improve
joint coordination, oversight, and management of programs
relating to explosive ordnance disposal;
(4) recommendations to the Secretary to improve the
capabilities and readiness of explosive ordnance disposal
forces; and
(5) an explanation of the advantages and disadvantages of
assigning responsibility for the coordination and integration of
explosive ordnance disposal to a single joint office or entity
in the Office of the Secretary of Defense.

(e) Definitions.--In this section:
(1) Explosive ordnance.--The term ``explosive ordnance''
means any munition containing explosives, nuclear fission or
fusion materials, or biological or chemical agents, including--
(A) bombs and warheads;
(B) guided and ballistic missiles;
(C) artillery, mortar, rocket, and small arms
munitions;
(D) mines, torpedoes, and depth charges;
(E) demolition charges;
(F) pyrotechnics;
(G) clusters and dispensers;
(H) cartridge and propellant actuated devices;
(I) electro-explosive devices; and
(J) clandestine and improvised explosive devices.
(2) Disposal.--The term ``disposal'' means, with respect to
explosive ordnance, the detection, identification, field
evaluation, defeat, disablement, or rendering safe, recovery and
exploitation, and final disposition of the ordnance.
SEC. 344. <>  PROCESS FOR COMMUNICATING
AVAILABILITY OF SURPLUS AMMUNITION.

(a) In General.--The Secretary of Defense shall implement a formal
process to provide Federal Government agencies outside the Department of
Defense with information on the availability of surplus, serviceable
ammunition from the Department of Defense for the purpose of reducing
costs relating to the storage and disposal of such ammunition.
(b) Implementation Deadline.--The Secretary shall implement the
process described in subsection (a) beginning not later than 180 days
after the date of the enactment of this Act.

[[Page 2085]]

SEC. 345. <>  MITIGATION OF RISKS POSED
BY WINDOW COVERINGS WITH ACCESSIBLE CORDS
IN CERTAIN MILITARY HOUSING UNITS.

(a) Removal of Certain Window Coverings.--Not later than three years
after the date of enactment of this Act, the Secretary of Defense shall
remove and replace disqualified window coverings from--
(1) military housing units owned by the Department of
Defense in which children under the age of 9 may reside; and
(2) military housing units leased by the Department of
Defense in which children under the age of 9 may reside if the
lease for such units requires the Department to provide window
coverings.

(b) Prohibition on Disqualified Window Coverings in Military Housing
Units Acquired or Constructed by Contract.--All contracts entered into
by the Secretary of Defense after September 30, 2017, for the
acquisition or construction of military family housing, including
military family housing acquired or constructed pursuant to subchapter
IV of chapter 169 of title 10, United States Code, shall prohibit the
use of disqualified window coverings in such housing.
(c) Disqualified Window Covering Defined.--In this section, the term
``disqualified window covering'' means--
(1) a window covering with an accessible cord that exceeds 8
inches in length; or
(2) a window covering with an accessible continuous loop
cord that does not have a cord tension device that prevents
operation when the cord is not anchored to the wall.
SEC. 346. <>  ACCESS TO MILITARY
INSTALLATIONS BY TRANSPORTATION COMPANIES.

(a) In General.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall establish policies
under which covered drivers may be authorized to access military
installations.
(b) Elements.--The policies established under subsection (a)--
(1) shall include the terms and conditions under which a
covered driver may be authorized to access a military
installation;
(2) may require a transportation company and a covered
driver to enter into a written agreement with the Department of
Defense as a precondition for obtaining authorization to access
a military installation;
(3) shall be consistent across military installations, to
the extent practicable;
(4) shall be designed to promote the expeditious entry of
covered drivers onto military installations for purposes of
providing commercial transportation services;
(5) shall place appropriate restrictions on entry into
sensitive areas of military installations;
(6) shall be designed, to the extent practicable, to give
covered drivers access to barracks areas, housing areas,
temporary lodging facilities, hospitals, and community support
facilities;
(7) shall require transportation companies--

[[Page 2086]]

(A) to track, in real-time, the location of the
entry and exit of covered drivers onto and off of
military installations; and
(B) to provide, on demand, the information described
in subparagraph (A) to appropriate personnel and
agencies of the Department; and
(8) shall take into account force protection requirements
and ensure the protection and safety of members of the Armed
Forces, civilian employees of the Department of Defense, and the
families of such members and employees.

(c) Confidentiality of Information.--The Secretary shall ensure that
any information provided to the Department by a transportation company
under subsection (b)(7)--
(1) is treated as confidential and proprietary information
of the company that is exempt from public disclosure pursuant to
section 552 of title 5, United States Code (commonly known as
the ``Freedom of Information Act''); and
(2) except as provided in subsection (b)(7), is not
disclosed to any person or entity without the express written
consent of the company unless disclosure of such information is
required by a court order.

(d) Definitions.--In this section:
(1) Transportation company.--The term ``transportation
company'' means a corporation, partnership, sole proprietorship,
or other entity outside of the Department of Defense that
provides a commercial transportation service to a rider,
including a company that uses a digital network to connect
riders to covered drivers for the purpose of providing such
transportation service.
(2) Covered driver.--The term ``covered driver''--
(A) means an individual--
(i) who is an employee of a transportation
company or who is affiliated with a transportation
company; and
(ii) who provides a commercial transportation
service to a rider; and
(B) includes a vehicle operated by such individual
for the purpose of providing such service.
SEC. 347. <>  ACCESS TO WIRELESS
HIGH-SPEED INTERNET AND NETWORK
CONNECTIONS FOR CERTAIN MEMBERS OF THE
ARMED FORCES.

(a) In General.--In providing members of the Armed Forces with
access to high-speed wireless Internet and network connections at
military installations outside the United States, the Secretary of
Defense may provide such access without charge to the members and their
dependents.
(b) Contract Authority.--The Secretary may enter into contracts for
the purpose of carrying out subsection (a).
SEC. 348. LIMITATION ON AVAILABILITY OF FUNDS FOR OFFICE OF THE
UNDER SECRETARY OF DEFENSE FOR
INTELLIGENCE.

Of the funds authorized to be appropriated by this Act or otherwise
made available for fiscal year 2017 for Operation and Maintenance,
Defense-wide, for the Office of the Under Secretary of Defense for
Intelligence, not more than 90 percent may be obligated or expended
until the Secretary of Defense issues guidance on the process by which
members of the Armed Forces may carry

[[Page 2087]]

an appropriate firearm on a military installation, as required by
section 526 of the National Defense Authorization Act for Fiscal Year
2016 (Public Law 114-92; 129 Stat. 813; 10 U.S.C. 2672 note).
SEC. 349. LIMITATION ON DEVELOPMENT AND FIELDING OF NEW CAMOUFLAGE
AND UTILITY UNIFORMS.

None of the funds authorized to be appropriated by this Act or
otherwise made available for the Department of Defense may be obligated
or expended to develop or field new camouflage uniforms, new utility
uniforms, or new families of uniforms until the date that is one year
after the date on which the Secretary of Defense submits to the
congressional defense committees notice of the intent of the Secretary
to develop or field such uniforms.
SEC. 350. PLAN FOR IMPROVED DEDICATED ADVERSARY AIR TRAINING
ENTERPRISE OF THE AIR FORCE.

(a) In General.--The Chief of Staff of the Air Force shall develop a
plan for an improved dedicated adversary air training enterprise for the
Air Force--
(1) to maximize warfighting effectiveness and synergies of
the current and planned fourth and fifth generation combat air
forces through optimized training and readiness;
(2) to harness intelligence analysis, emerging live-virtual-
constructive training technologies, range infrastructure
improvements, and results of experimentation and prototyping
efforts in operational concept development;
(3) to challenge the combat air forces of the Air Force with
threat representative adversary-to-friendly aircraft ratios,
known and emerging adversary tactics, and high fidelity
replication of threat airborne and ground capabilities; and
(4) to achieve training and readiness goals and objectives
of the Air Force with demonstrated institutional commitment to
the adversary air training enterprise through the application of
Air Force policy and resources, partnering with the other Armed
Forces, allies, and friends, and employing the use of industry
contracted services.

(b) Elements.--The plan under subsection (a) shall include, with
respect to an improved dedicated adversary air training enterprise, the
following:
(1) Goals and objectives.
(2) Concepts of operations.
(3) Timelines for the phased implementation of the
enterprise.
(4) Analysis of readiness improvements that may result from
the enterprise.
(5) Prioritized resource requirements.
(6) Such other matters as the Chief of Staff considers
appropriate.

(c) Written Plan and Briefing.--Not later than March 3, 2017, the
Chief of Staff shall provide to the Committees on Armed Services of the
Senate and the House of Representatives--
(1) a written version of the plan developed under subsection
(a); and
(2) a briefing on such plan.

[[Page 2088]]

SEC. 351. INDEPENDENT REVIEW AND ASSESSMENT OF THE READY AIRCREW
PROGRAM OF THE AIR FORCE.

(a) Independent Review and Assessment.--The Secretary of the Air
Force shall enter into a contract with an independent entity with
appropriate expertise--
(1) to conduct a review and assessment of--
(A) the assumptions underlying the annual
continuation training requirements of the Air Force; and
(B) the overall effectiveness of the Ready Aircrew
Program of the Air Force in managing aircrew training
requirements; and
(2) to make recommendations for the improved management of
such training requirements.

(b) Report.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Secretary of the Air Force shall
submit to the congressional defense committees a report on the
review and assessment conducted under subsection (a).
(2) Elements.--The report under paragraph (1) shall include
an examination of the following:
(A) For the aircrews of each type of combat aircraft
and by mission type--
(i) the number of sorties required to reach
minimum and optimal levels of proficiency,
respectively;
(ii) the optimal mix of live and virtual
training sorties; and
(iii) the optimal mix of experienced aircrews
versus inexperienced aircrews.
(B) The availability of assets and infrastructure to
support the achievement of aircrew proficiency levels
and an explanation of any requirements relating to such
assets and infrastructure.
(C) The accumulated flying hours or other
measurements used to determine if an aircrew qualifies
for designation as an experienced aircrew, and whether
different measurements should be used.
(D) Any actions taken or planned to be taken to
implement recommendations resulting from the independent
review and assessment under subsection (a), including an
estimate of the resources required to implement such
recommendations.
(E) Any other matters the Secretary determines are
appropriate to ensure a comprehensive review and
assessment.

(c) Comptroller General Review.--
(1) In general.--The Comptroller General of the United
States shall submit to the congressional defense committees a
review of the report described in subsection (b). Such review
shall include an assessment of--
(A) the extent to which the report addressed the
elements described in paragraph (2) of such subsection;
(B) the adequacy and completeness of the assumptions
reviewed to establish the annual training requirements
of the Air Force;
(C) any actions the Air Force plans to carry out to
incorporate the results of the report into annual
training documents; and

[[Page 2089]]

(D) any other matters the Comptroller General
determines are relevant.
(2) Briefing.--Not later than 60 days after the date on
which the Secretary of the Air Force submits the report under
subsection (b) and prior to submitting the review required under
paragraph (1), the Comptroller General shall provide a briefing
to the congressional defense committees on the preliminary
results of the review conducted under such paragraph.
SEC. 352. <>  STUDY ON SPACE-AVAILABLE
TRAVEL SYSTEM OF THE DEPARTMENT OF
DEFENSE.

(a) Study Required.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense shall seek to enter into
a contract with a federally funded research and development center to
conduct an independent study on the space-available travel system of the
Department of Defense.
(b) Report Required.--Not later than 180 days after entering into a
contract with a federally funded research and development center under
subsection (a), the Secretary shall submit to the congressional defense
committees a report summarizing the results of the study conducted under
such subsection.
(c) Elements.--The report under subsection (b) shall include, with
respect to the space-available travel system, the following:
(1) A determination of--
(A) the capacity of the system as of the date of the
enactment of this Act;
(B) the projected capacity of the system for the 10-
year period following such date of enactment; and
(C) the projected number of reserve retirees, active
duty retirees, and dependents of such retirees that will
exist by the end of such 10-year period.
(2) Estimates of system capacity based the projections
described in paragraph (1).
(3) A discussion of the efficiency of the system and data
regarding the use of available space with respect to each
category of passengers eligible for space-available travel under
existing regulations.
(4) A description of the effect on system capacity if
eligibility for space-available travel is extended to--
(A) drilling reserve component personnel and
dependents of such personnel on international flights;
(B) dependents of reserve component retirees who are
less than 60 years of age;
(C) retirees who are less than 60 years of age on
international flights;
(D) drilling reserve component personnel traveling
to drilling locations; and
(E) members or former members of the Armed Forces
who have a disability rated as total, if space-available
travel is provided to such members on the same basis as
such travel is provided to members of the Armed Forces
entitled to retired or retainer pay.
(5) A discussion of logistical and management problems,
including congestion at terminals, waiting times, lodging
availability, and personal hardships experienced by travelers.

[[Page 2090]]

(6) An evaluation of the cost of the system and whether
space-available travel is and can remain cost-neutral.
(7) An evaluation of the feasibility of expanding the
categories of passengers eligible for space-available travel to
include--
(A) in the case of overseas travel, retired members
of an active or reserve component, including retired
members of reserve components, who, but for being under
the eligibility age applicable to the member under
section 12731 of title 10, United States Code, would be
eligible for retired pay under chapter 1223 of such
title;
(B) unremarried widows and widowers of active or
reserve component members of the Armed Forces; and
(C) members or former members of the Armed Forces
who have a disability rated as total, if space-available
travel is provided to such members on the same basis as
such travel is provided to members of the Armed Forces
entitled to retired or retainer pay.
(8) Such other factors relating to the efficiency and cost
of the system as the Secretary determines to be appropriate.

(d) Additional Responsibilities.--In addition to carrying out
subsections (a) through (c), the Secretary of Defense shall--
(1) analyze the methods used to prioritize among the
categories of individuals eligible for space-available travel
and make recommendations for--
(A) re-ordering the priority of such categories; and
(B) adding additional categories of eligible
individuals; and
(2) collect data on travelers who request but do not obtain
available travel spaces under the space-available travel system.

(e) Disability Rated as Total Defined.--In this section, the term
``disability rated as total'' has the meaning given the term in section
1414(e)(3) of title 10, United States Code.
SEC. 353. EVALUATION OF MOTOR CARRIER SAFETY PERFORMANCE AND
SAFETY TECHNOLOGY.

(a) In General.--The Secretary of Defense shall evaluate the need
for proven safety technology in vehicles transporting shipments under
the Transportation Protective Services program of the United States
Transportation Command, including--
(1) electronic logging devices;
(2) roll stability control;
(3) forward collision avoidance systems;
(4) lane departure warning systems; and
(5) speed limiters.

(b) Considerations.--In carrying out subsection (a), the Secretary
shall--
(1) consider the need to avoid catastrophic accidents and
exposure of security-sensitive materials; and
(2) take into the account the findings of the Government
Accountability Office report numbered GAO-16-82 and titled
``Defense Transportation; DoD Needs to Improve the Evaluation of
Safety and Performance Information for Carriers Transporting
Security-Sensitive Materials''.

[[Page 2091]]

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revisions in permanent active duty end strength minimum
levels.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the
reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2017 limitation on number of non-dual status
technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active
duty for operational support.
Sec. 416. Technical corrections to annual authorization for personnel
strengths.

Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

The Armed Forces are authorized strengths for active duty personnel
as of September 30, 2017, as follows:
(1) The Army, 476,000.
(2) The Navy, 323,900.
(3) The Marine Corps, 185,000.
(4) The Air Force, 321,000.
SEC. 402. REVISIONS IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM
LEVELS.

Section 691(b) of title 10, United States Code, is amended by
striking paragraphs (1) through (4) and inserting the following new
paragraphs:
``(1) For the Army, 476,000.
``(2) For the Navy, 323,900.
``(3) For the Marine Corps, 185,000.
``(4) For the Air Force, 321,000.''.

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) In General.--The Armed Forces are authorized strengths for
Selected Reserve personnel of the reserve components as of September 30,
2017, as follows:
(1) The Army National Guard of the United States, 343,000.
(2) The Army Reserve, 199,000.
(3) The Navy Reserve, 58,000.
(4) The Marine Corps Reserve, 38,500.
(5) The Air National Guard of the United States, 105,700.
(6) The Air Force Reserve, 69,000.
(7) The Coast Guard Reserve, 7,000.

(b) End Strength Reductions.--The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve component shall
be proportionately reduced by--
(1) the total authorized strength of units organized to
serve as units of the Selected Reserve of such component which

[[Page 2092]]

are on active duty (other than for training) at the end of the
fiscal year; and
(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training or for
unsatisfactory participation in training) without their consent
at the end of the fiscal year.

(c) End Strength Increases.--Whenever units or individual members of
the Selected Reserve for any reserve component are released from active
duty during any fiscal year, the end strength prescribed for such fiscal
year for the Selected Reserve of such reserve component shall be
increased proportionately by the total authorized strengths of such
units and by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF
THE RESERVES.

Within the end strengths prescribed in section 411(a), the reserve
components of the Armed Forces are authorized, as of September 30, 2017,
the following number of Reserves to be serving on full-time active duty
or full-time duty, in the case of members of the National Guard, for the
purpose of organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United States, 30,155.
(2) The Army Reserve, 16,261.
(3) The Navy Reserve, 9,955.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United States, 14,764.
(6) The Air Force Reserve, 2,955.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

(a) In General.--The authorized number of military technicians (dual
status) as of September 30, 2017, for the reserve components of the Army
and the Air Force (notwithstanding section 129 of title 10, United
States Code) shall be the following:
(1) For the Army National Guard of the United States,
25,507.
(2) For the Army Reserve, 7,570.
(3) For the Air National Guard of the United States, 22,103.
(4) For the Air Force Reserve, 10,061.

(b) Variance.--Notwithstanding section 115 of title 10, United
States Code, the end strength prescribed by subsection (a) for a reserve
component specified in that subsection may be increased--
(1) by 3 percent, upon determination by the Secretary of
Defense that such action is in the national interest; and
(2) by 2 percent, upon determination by the Secretary of the
military department concerned that such action would enhance
manning and readiness in essential units or in critical
specialties or ratings.
SEC. 414. FISCAL YEAR 2017 LIMITATION ON NUMBER OF NON-DUAL STATUS
TECHNICIANS.

(a) Limitations.--
(1) National guard.--Within the limitation provided in
section 10217(c)(2) of title 10, United States Code, the number
of non-dual status technicians employed by the National Guard as
of September 30, 2017, may not exceed the following:

[[Page 2093]]

(A) For the Army National Guard of the United
States, 1,600.
(B) For the Air National Guard of the United States,
350.
(2) Army reserve.--The number of non-dual status technicians
employed by the Army Reserve as of September 30, 2017, may not
exceed 420.
(3) Air force reserve.--The number of non-dual status
technicians employed by the Air Force Reserve as of September
30, 2017, may not exceed 90.

(b) Non-dual Status Technicians Defined.--In this section, the term
``non-dual status technician'' has the meaning given that term in
section 10217(a) of title 10, United States Code.
SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON
ACTIVE DUTY FOR OPERATIONAL SUPPORT.

During fiscal year 2017, the maximum number of members of the
reserve components of the Armed Forces who may be serving at any time on
full-time operational support duty under section 115(b) of title 10,
United States Code, is the following:
(1) The Army National Guard of the United States, 17,000.
(2) The Army Reserve, 13,000.
(3) The Navy Reserve, 6,200.
(4) The Marine Corps Reserve, 3,000.
(5) The Air National Guard of the United States, 16,000.
(6) The Air Force Reserve, 14,000.
SEC. 416. TECHNICAL CORRECTIONS TO ANNUAL AUTHORIZATION FOR
PERSONNEL STRENGTHS.

Section 115 of title 10, United States Code, is amended--
(1) in subsection (b)(1)--
(A) in subparagraph (B), by striking ``502(f)(2)''
and inserting ``502(f)(1)(B)''; and
(B) in subparagraph (C), by striking ``502(f)(2)''
and inserting ``502(f)(1)(B)''; and
(2) in subsection (i)(7), by striking ``502(f)(1)'' and
inserting ``502(f)(1)(A)''.

Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

(a) Authorization of Appropriations.--Funds are hereby authorized to
be appropriated for fiscal year 2017 for the use of the Armed Forces and
other activities and agencies of the Department of Defense for expenses,
not otherwise provided for, for military personnel, as specified in the
funding table in section 4401.
(b) Construction of Authorization.--The authorization of
appropriations in subsection (a) supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for fiscal year
2017.

[[Page 2094]]

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Reduction in number of general and flag officers on active
duty and authorized strength after December 31, 2022, of such
general and flag officers.
Sec. 502. Repeal of statutory specification of general or flag officer
grade for various positions in the Armed Forces.
Sec. 503. Number of Marine Corps general officers.
Sec. 504. Promotion eligibility period for officers whose confirmation
of appointment is delayed due to nonavailability to the
Senate of probative information under control of non-
Department of Defense agencies.
Sec. 505. Continuation of certain officers on active duty without regard
to requirement for retirement for years of service.
Sec. 506. Equal consideration of officers for early retirement or
discharge.
Sec. 507. Modification of authority to drop from rolls a commissioned
officer.
Sec. 508. Extension of force management authorities allowing enhanced
flexibility for officer personnel management.
Sec. 509. Pilot programs on direct commissions to cyber positions.
Sec. 510. Length of joint duty assignments.
Sec. 510A. Revision of definitions used for joint officer management.

Subtitle B--Reserve Component Management

Sec. 511. Authority for temporary waiver of limitation on term of
service of Vice Chief of the National Guard Bureau.
Sec. 512. Rights and protections available to military technicians.
Sec. 513. Inapplicability of certain laws to National Guard technicians
performing active Guard and Reserve duty.
Sec. 514. Extension of removal of restrictions on the transfer of
officers between the active and inactive National Guard.
Sec. 515. Extension of temporary authority to use Air Force reserve
component personnel to provide training and instruction
regarding pilot training.
Sec. 516. Expansion of eligibility for deputy commander of combatant
command having United States among geographic area of
responsibility to include officers of the Reserves.

Subtitle C--General Service Authorities

Sec. 521. Matters relating to provision of leave for members of the
Armed Forces, including prohibition on leave not expressly
authorized by law.
Sec. 522. Transfer of provision relating to expenses incurred in
connection with leave canceled due to contingency operations.
Sec. 523. Expansion of authority to execute certain military
instruments.
Sec. 524. Medical examination before administrative separation for
members with post-traumatic stress disorder or traumatic
brain injury in connection with sexual assault.
Sec. 525. Reduction of tenure on the temporary disability retired list.
Sec. 526. Technical correction to voluntary separation pay and benefits.
Sec. 527. Consolidation of Army marketing and pilot program on
consolidated Army recruiting.

Subtitle D--Member Whistleblower Protections and Correction of Military
Records

Sec. 531. Improvements to whistleblower protection procedures.
Sec. 532. Modification of whistleblower protection authorities to
restrict contrary findings of prohibited personnel action by
the Secretary concerned.
Sec. 533. Availability of certain Correction of Military Records and
Discharge Review Board information through the Internet.
Sec. 534. Improvements to authorities and procedures for the correction
of military records.
Sec. 535. Treatment by discharge review boards of claims asserting post-
traumatic stress disorder or traumatic brain injury in
connection with combat or sexual trauma as a basis for review
of discharge.
Sec. 536. Comptroller General of the United States review of integrity
of Department of Defense whistleblower program.

Subtitle E--Military Justice and Legal Assistance Matters

Sec. 541. United States Court of Appeals for the Armed Forces.
Sec. 542. Effective prosecution and defense in courts-martial and pilot
programs on professional military justice development for
judge advocates.

[[Page 2095]]

Sec. 543. Inclusion in annual reports on sexual assault prevention and
response efforts of the Armed Forces of information on
complaints of retaliation in connection with reports of
sexual assault in the Armed Forces.
Sec. 544. Extension of the requirement for annual report regarding
sexual assaults and coordination with release of Family
Advocacy Program report.
Sec. 545. Metrics for evaluating the efforts of the Armed Forces to
prevent and respond to retaliation in connection with reports
of sexual assault in the Armed Forces.
Sec. 546. Training for Department of Defense personnel who investigate
claims of retaliation.
Sec. 547. Notification to complainants of resolution of investigations
into retaliation.
Sec. 548. Modification of definition of sexual harassment for purposes
of investigations by commanding officers of complaints of
harassment.
Sec. 549. Improved Department of Defense prevention of and response to
hazing in the Armed Forces.

Subtitle F--National Commission on Military, National, and Public
Service

Sec. 551. Purpose, scope, and definitions.
Sec. 552. Preliminary report on purpose and utility of registration
system under Military Selective Service Act.
Sec. 553. National Commission on Military, National, and Public Service.
Sec. 554. Commission hearings and meetings.
Sec. 555. Principles and procedure for Commission recommendations.
Sec. 556. Executive Director and staff.
Sec. 557. Termination of Commission.

Subtitle G--Member Education, Training, Resilience, and Transition

Sec. 561. Modification of program to assist members of the Armed Forces
in obtaining professional credentials.
Sec. 562. Inclusion of alcohol, prescription drug, opioid, and other
substance abuse counseling as part of required preseparation
counseling.
Sec. 563. Inclusion of information in Transition Assistance Program
regarding effect of receipt of both veteran disability
compensation and voluntary separation pay.
Sec. 564. Training under Transition Assistance Program on career and
employment opportunities associated with transportation
security cards.
Sec. 565. Extension of suicide prevention and resilience program.
Sec. 566. Congressional notification in advance of appointments to
service academies.
Sec. 567. Report and guidance on Job Training, Employment Skills
Training, Apprenticeships, and Internships and SkillBridge
initiatives for members of the Armed Forces who are being
separated.
Sec. 568. Military-to-mariner transition.

Subtitle H--Defense Dependents' Education and Military Family Readiness
Matters

Sec. 571. Continuation of authority to assist local educational agencies
that benefit dependents of members of the Armed Forces and
Department of Defense civilian employees.
Sec. 572. One-year extension of authorities relating to the transition
and support of military dependent students to local
educational agencies.
Sec. 573. Annual notice to members of the Armed Forces regarding child
custody protections guaranteed by the Servicemembers Civil
Relief Act.
Sec. 574. Requirement for annual Family Advocacy Program report
regarding child abuse and domestic violence.
Sec. 575. Reporting on allegations of child abuse in military families
and homes.
Sec. 576. Repeal of Advisory Council on Dependents' Education.
Sec. 577. Support for programs providing camp experience for children of
military families.
Sec. 578. Comptroller General of the United States assessment and report
on Exceptional Family Member Programs.
Sec. 579. Impact aid amendments.

Subtitle I--Decorations and Awards

Sec. 581. Posthumous advancement of Colonel George E. ``Bud'' Day,
United States Air Force, on the retired list.
Sec. 582. Authorization for award of medals for acts of valor during
certain contingency operations.
Sec. 583. Authorization for award of the Medal of Honor to Gary M. Rose
and James C. McCloughan for acts of valor during the Vietnam
War.
Sec. 584. Authorization for award of Distinguished-Service Cross to
First Lieutenant Melvin M. Spruiell for acts of valor during
World War II.

[[Page 2096]]

Sec. 585. Authorization for award of the Distinguished Service Cross to
Chaplain (First Lieutenant) Joseph Verbis LaFleur for acts of
valor during World War II.
Sec. 586. Review regarding award of Medal of Honor to certain Asian
American and Native American Pacific Islander war veterans.

Subtitle J--Miscellaneous Reports and Other Matters

Sec. 591. Repeal of requirement for a chaplain at the United States Air
Force Academy appointed by the President.
Sec. 592. Extension of limitation on reduction in number of military and
civilian personnel assigned to duty with service review
agencies.
Sec. 593. Annual reports on progress of the Army and the Marine Corps in
integrating women into military occupational specialities and
units recently opened to women.
Sec. 594. Report on feasability of electronic tracking of operational
active-duty service performed by members of the Ready Reserve
of the Armed Forces.
Sec. 595. Report on discharge by warrant officers of pilot and other
flight officer positions in the Navy, Marine Corps, and Air
Force currently discharged by commissioned officers.
Sec. 596. Body mass index test.
Sec. 597. Report on career progression tracks of the Armed Forces for
women in combat arms units.

Subtitle A--Officer Personnel Policy

SEC. 501. <>  REDUCTION IN NUMBER OF
GENERAL AND FLAG OFFICERS ON ACTIVE DUTY
AND AUTHORIZED STRENGTH AFTER DECEMBER 31,
2022, OF SUCH GENERAL AND FLAG OFFICERS.

(a) Reduction in Number of General and Flag Officers by December 31,
2022.--
(1) Required reduction.--Except as otherwise provided by an
Act enacted after the date of the enactment of this Act that
expressly modifies the requirements of this paragraph, by not
later than December 31, 2022, the Secretary of Defense shall
reduce the number of general and flag officers on active duty by
110 from the aggregate authorized number of general and flag
officers authorized by sections 525 and 526 of title 10, United
States Code, as of December 31, 2015.
(2) Distribution of authorized positions.--Effective as of
December 31, 2022, and reflecting the reduction required by
paragraph (1), authorized general and flag officer positions
shall be distributed among the Army, Navy, Air Force, Marine
Corps, and joint pool as follows:
(A) The Army is authorized 220 positions in the
general officer grades.
(B) The Navy is authorized 151 positions in the flag
officer grades.
(C) The Air Force is authorized 187 positions in the
general officer grades.
(D) The Marine Corps is authorized 62 positions in
the general officer grades.
(E) The joint pool is authorized 232 positions in
the general or flag officer grades, to be distributed as
follows:
(i) 82 positions in the general officer grades
from the Army.
(ii) 60 positions in the flag officer grades
from the Navy.
(iii) 69 positions in the general officer
grades from the Air Force.

[[Page 2097]]

(iv) 21 positions in the general officer
grades from the Marine Corps.
(3) Temporary additional joint pool allocation.--In addition
to the positions authorized by paragraph (2), the 30 general and
flag officer positions designated for overseas contingency
operations are authorized as an additional maximum temporary
allocation to the joint pool.

(b) Plan to Achieve Required Reduction and Distribution.--
(1) Plan required.--Utilizing the study conducted under
subsection (c), the Secretary of Defense shall develop a plan to
achieve, by the date specified in subsection (a)(1)--
(A) the reduction required by such subsection in the
number of general and flag officers; and
(B) the distribution of authorized positions
required by subsection (a)(2).
(2) Submission of plan.--When the budget for the Department
of Defense for fiscal year 2019 is submitted to Congress
pursuant to section 1105 of title 31, United States Code, the
Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a report
setting forth the plan developed under this subsection.
(3) Progress reports.--The Secretary of Defense shall
include with the budget for the Department of Defense for each
of fiscal years 2020, 2021, and 2022 a report describing and
assessing the progress of the Secretary in implementing the plan
developed under this subsection.

(c) Study for Purposes of Plan.--
(1) Study required.--For purposes of complying with
subsection (a) and preparing the plan required by subsection
(b), the Secretary of Defense shall conduct a comprehensive and
deliberate global manpower study of requirements for general and
flag officers with the goal of identifying--
(A) the requirement justification for each general
or flag officer position in terms of overall force
structure, scope of responsibility, command and control
requirements, and force readiness and execution;
(B) an additional 10 percent reduction in the
aggregate number of authorized general officer and flag
officer positions after the reductions required by
subsection (a); and
(C) an appropriate redistribution of all general
officer and flag officer positions within the reductions
so identified.
(2) Submission of study results.--Not later than April 1,
2017, the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report setting forth the results of the study conducted under
this subsection, including the justification for general and
flag officer position to be retained and the reductions
identified by general and flag officer position.
(3) Interim report.--If practicable before the date
specified in paragraph (2), the Secretary of Defense shall
submit to the Committees on Armed Services of the Senate and the
House of Representatives an interim report describing the
progress made toward the completion of the study under this
subsection, including--
(A) the specific general and flag officer positions
that have been evaluated;

[[Page 2098]]

(B) the results of that evaluation; and
(C) recommendations for achieving the additional 10
percent reduction in the aggregate number of authorized
general officer and flag officer positions to be
identified under paragraph (1)(C) and recommendations
for redistribution of general and flag officer positions
that have been developed to that point.

(d) Exclusions.--
(1) Related to joint duty assignments.--For purposes of
complying with subsection (a), the Secretary of Defense may
exclude--
(A) a general or flag officer released from a joint
duty assignment, but only during the 60-day period
beginning on the date the officer departs the joint duty
assignment, except that the Secretary may authorize the
Secretary of a military department to extend the 60-day
period by an additional 120 days, but not more than
three officers on active duty from each Armed Force may
be covered by the additional extension at the same time;
and
(B) the number of officers required to serve in
joint duty assignments for each Armed Force as
authorized by the Secretary under section 526a(b) of
title 10, United States Code, as added by subsection (h)
of this section.
(2) Related to relief from chief of staff duty.--For
purposes of complying with subsection (a), the Secretary of
Defense may exclude an officer who continues to hold the grade
of general or admiral under section 601(b)(5) of title 10,
United States Code, after relief from the position of Chairman
of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief
of Naval Operations, Chief of Staff of the Air Force, or
Commandant of the Marine Corps.
(3) Related to retirement, separation, release, or relief.--
For purposes of complying with subsection (a), the Secretary of
Defense may exclude the following officers:
(A) An officer of an Armed Force in the grade of
brigadier general or above or, in the case of the Navy,
in the grade of rear admiral (lower half) or above, who
is on leave pending the retirement, separation, or
release of that officer from active duty, but only
during the 60-day period beginning on the date of the
commencement of such leave of such officer.
(B) An officer of an Armed Force who has been
relieved from a position designated under section 601(a)
of title 10, United States Code, or by law to carry one
of the grades specified in such section, but only during
the 60-day period beginning on the date on which the
assignment of the officer to the first position is
terminated or until the officer is assigned to a second
such position, whichever occurs first.

(e) Secretarial Authority to Grant Exceptions to Limitations.--
(1) In general.--Subject to paragraph (2), the Secretary of
Defense may alter the reduction otherwise required by subsection
(a)(1) in the number of general and flag officer or the
distribution of authorized positions otherwise required by
subsection (a)(2) in the interest of the national security of
the United States.

[[Page 2099]]

(2) Notice to congress of exceptions.--Not later than 30
days after authorizing a number of general or flag officers in
excess of the number required as a result of the reduction
required by subsection (a)(1) or altering the distribution of
authorized positions under subsection (a)(2), the Secretary of
Defense shall submit to the Committees on Armed Services of the
Senate and the House of Representatives written notice of such
exception, including a statement of the reason for such
exception and the anticipated duration of the exception.

(f) Orderly Transition for Officers Recently Assigned to Positions
to Be Eliminated.--
(1) Covered officers.--In order to provide an orderly
transition for personnel in general or flag officer positions to
be eliminated pursuant to the plan prepared under subsection
(b), any general or flag officer who has not completed, as of
December 31, 2022, at least 24 months in a position to be
eliminated pursuant to the plan may remain in the position until
the last day of the month that is 24 months after the month in
which the officer assumed the duties of the position.
(2) Report to congress on covered officers.--The Secretary
of Defense shall include in the annual report required by
section 526(j) of title 10, United States Code, in 2020 a
description of the positions in which an officer will remain
pursuant to paragraph (1), including the latest date on which
the officer may remain in such position pursuant to that
paragraph.
(3) Notice to congress on detachment of covered officers.--
The Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a notice
on the date on which each officer covered by paragraph (1) is
detached from the officer's position pursuant to such paragraph.

(g) Relation to Subsequent General or Flag Nominations.--
(1) Notice to senate with nomination.--In order to help
achieve the requirements of the plan required by subsection (b),
effective 30 days after the commencement of the implementation
of the plan, the Secretary of Defense shall include with each
nomination of an officer to a grade above colonel or captain (in
the case of the Navy) that is forwarded by the President to the
Senate for appointment, by and with the advice and consent of
the Senate, a certification to the Committee on Armed Services
of the Senate that the appointment of the officer to the grade
concerned will not interfere with achieving the reduction
required by subsection (a)(1) in the number of general and flag
officer positions or the distribution of authorized positions
required by subsection (a)(2).
(2) Implementation.--Not later than 120 days after the date
of the submission of the plan required by subsection (b), the
Secretary of Defense shall revise applicable guidance of the
Department of Defense on general and flag officer authorizations
in order to ensure that--
(A) the achievement of the reductions required
pursuant to subsection (a) is incorporated into the
planning for the execution of promotions by the military
departments and for the joint pool;

[[Page 2100]]

(B) to the extent practicable, the resulting grades
for general and flag officer positions are uniformly
applied to positions of similar duties and
responsibilities across the military departments and the
joint pool; and
(C) planning achieves a reduction in the
headquarters functions and administrative and support
activities and staffs of the Department of Defense and
the military departments commensurate with the
achievement of the reductions required pursuant to
subsection (a).

(h) Authorized Strength After December 31, 2022, of General and Flag
Officers on Active Duty.--
(1) In general.--Chapter 32 of title 10, United States Code,
is amended by inserting after section 526 the following new
section:
``Sec. 526a. <>  Authorized strength after
December 31, 2022: general officers and flag
officers on active duty

``(a) Limitations.--The number of general officers on active duty in
the Army, Air Force, and Marine Corps, and the number of flag officers
on active duty in the Navy, after December 31, 2022, may not exceed the
number specified for the armed force concerned as follows:
``(1) For the Army, 220.
``(2) For the Navy, 151.
``(3) For the Air Force, 187.
``(4) For the Marine Corps, 62.

``(b) Limited Exclusion for Joint Duty Requirements.--
``(1) In general.--The Secretary of Defense may designate up
to 232 general officer and flag officer positions that are joint
duty assignments for purposes of chapter 38 of this title for
exclusion from the limitations in subsection (a).
``(2) Minimum number.--Unless the Secretary of Defense
determines that a lower number is in the best interest of the
Department of Defense, the minimum number of officers serving in
positions designated under paragraph (1) for each armed force
shall be as follows:
``(A) For the Army, 75.
``(B) For the Navy, 53.
``(C) For the Air Force, 68.
``(D) For the Marine Corps, 17.

``(c) Exclusion of Certain Officers Pending Separation or Retirement
or Between Senior Positions.--The limitations of this section do not
apply to--
``(1) an officer of an armed force in the grade of brigadier
general or above or, in the case of the Navy, in the grade of
rear admiral (lower half) or above, who is on leave pending the
retirement, separation, or release of that officer from active
duty, but only during the 60-day period beginning on the date of
the commencement of such leave of such officer; or
``(2) an officer of an armed force who has been relieved
from a position designated under section 601(a) of this title or
by law to carry one of the grades specified in such section, but
only during the 60-day period beginning on the date on which the
assignment of the officer to the first position is terminated or
until the officer is assigned to a second such position,
whichever occurs first.

[[Page 2101]]

``(d) Temporary Exclusion for Assignment to Certain Temporary
Billets.--
``(1) In general.--The limitations in subsection (a) do not
apply to a general officer or flag officer assigned to a
temporary joint duty assignment designated by the Secretary of
Defense.
``(2) Duration of exclusion.--A general officer or flag
officer assigned to a temporary joint duty assignment as
described in paragraph (1) may not be excluded under this
subsection from the limitations in subsection (a) for a period
of longer than one year.

``(e) Exclusion of Officers Departing From Joint Duty Assignments.--
The limitations in subsection (a) do not apply to an officer released
from a joint duty assignment, but only during the 60-day period
beginning on the date the officer departs the joint duty assignment. The
Secretary of Defense may authorize the Secretary of a military
department to extend the 60-day period by an additional 120 days, except
that not more than three officers on active duty from each armed force
may be covered by the additional extension at the same time.
``(f) Active-Duty Baseline.--
``(1) Notice and wait requirements.--If the Secretary of a
military department proposes an action that would increase above
the baseline the number of general officers or flag officers of
an armed force under the jurisdiction of that Secretary who
would be on active duty and would count against the statutory
limit applicable to that armed force under subsection (a), the
action shall not take effect until after the end of the 60-
calendar day period beginning on the date on which the Secretary
provides notice of the proposed action, including the rationale
for the action, to the Committees on Armed Services of the
Senate and the House of Representatives.
``(2) Baseline defined.--In paragraph (1), the term
`baseline' for an armed force means the lower of--
``(A) the statutory limit of general officers or
flag officers of that armed force under subsection (a);
or
``(B) the actual number of general officers or flag
officers of that armed force who, as of January 1, 2023,
counted toward the statutory limit of general officers
or flag officers of that armed force under subsection
(a).

``(g) Joint Duty Assignment Baseline.--
``(1) Notice and wait requirement.--If the Secretary of
Defense, the Secretary of a military department, or the Chairman
of the Joint Chiefs of Staff proposes an action that would
increase above the baseline the number of general officers and
flag officers of the armed forces in joint duty assignments who
count against the statutory limit under subsection (b)(1), the
action shall not take effect until after the end of the 60-
calendar day period beginning on the date on which such
Secretary or the Chairman, as the case may be, provides notice
of the proposed action, including the rationale for the action,
to the Committees on Armed Services of the Senate and the House
of Representatives.
``(2) Baseline defined.--In paragraph (1), the term
`baseline' means the lower of--
``(A) the statutory limit on general officer and
flag officer positions that are joint duty assignments
under subsection (b)(1); or

[[Page 2102]]

``(B) the actual number of general officers and flag
officers who, as of January 1, 2023, were in joint duty
assignments counted toward the statutory limit under
subsection (b)(1).

``(h) Annual Report.--Not later than March 1 each year, the
Secretary of Defense shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report specifying the
following:
``(1) The numbers of general officers and flag officers who,
as of January 1 of the calendar year in which the report is
submitted, counted toward the service-specific limits of
subsection (a).
``(2) The number of general officers and flag officers in
joint duty assignments who, as of such January 1, counted toward
the statutory limit under subsection (b)(1).''.
(2) Conforming amendment.--Section 526 of title 10, United
States Code, is amended by adding at the end the following new
subsection:

``(k) Cessation of Applicability.--The provisions of this section
shall not apply to number of general officers and flag officers in the
armed forces after December 31, 2022. For provisions applicable to the
number of such officers after that date, see section 526a of this
title.''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 32 of title 10, <> United States Code, is amended by inserting after the
item relating to section 526 the following new item:

``526a. Authorized strength after December 31, 2022: general officers
and flag officers on active duty.''.

SEC. 502. REPEAL OF STATUTORY SPECIFICATION OF GENERAL OR FLAG
OFFICER GRADE FOR VARIOUS POSITIONS IN THE
ARMED FORCES.

(a) Assistants to CJCS for NG Matters and Reserve Matters.--
(1) In general.--Section 155a of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 5 of such title <> is amended by striking the item relating to section
155a.

(b) Legal Counsel to CJCS.--Section 156 of title 10, United States
Code, is amended--
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).

(c) Director of Test Resource Management Center.--Section 196(b)(1)
of title 10, United States Code, is amended by striking the second and
third sentences.
(d) Director of Missile Defense Agency.--
(1) In general.--Section 203 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 8 of such title <> is amended by striking the item relating to section 203.

(e) Joint 4-Star Positions.--Section 604(b) of title 10, United
States Code, is amended by striking paragraph (3).

[[Page 2103]]

(f) Senior Members of Military Staff Committee of UN.--Section 711
of title 10, United States Code, is amended by striking the second
sentence.
(g) Chief of Staff to President.--
(1) In general.--Section 720 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 41 of such title <> is amended by striking the item relating to section 720.

(h) Attending Physician to Congress.--
(1) In general.--Section 722 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 41 of such title <> is amended by striking the item relating to section 722.

(i) Physician to White House.--
(1) In general.--Section 744 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 43 of such title <> is amended by striking the item relating to section 744.

(j) Chief of Legislative Liaison of the Army.--Section 3023(a) of
title 10, United States Code, is amended by striking the second
sentence.
(k) Chiefs of Branches of the Army.--Section 3036(b) of title 10,
United States Code, is amended in the flush matter following paragraph
(2)--
(1) by striking the first sentence; and
(2) in the second sentence, by striking ``, and while so
serving, has the grade of lieutenant general''.

(l) Judge Advocate General of the Army.--Section 3037(a) of title
10, United States Code, is amended by striking the last two sentences.
(m) Chief of Army Reserve.--Section 3038(c) of title 10, United
States Code, is amended--
(1) in the subsection heading, by striking ``; Grade'';
(2) by striking ``(1)''; and
(3) by striking paragraph (2).

(n) Deputy and Assistant Chiefs of Branches of the Army.--
(1) In general.--Section 3039 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 305 of such title <> is amended by striking the item relating to section
3039.

(o) Chief of Army Nurse Corps.--Section 3069(b) of title 10, United
States Code, is amended by striking the second sentence.
(p) Assistant Chiefs of Army Medical Specialist Corps.--
(1) In general.--Section 3070 of title 10, United States
Code, is amended--
(A) in subsection (a), by striking ``and assistant
chiefs'';
(B) by striking subsection (c); and
(C) by redesignating subsection (d) as subsection
(c).
(2) Conforming amendment.--The heading of such section is
amended to read as follows:

[[Page 2104]]

``Sec. 3070. Army Medical Specialist Corps: organization; Chief''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 307 of such title <> is amended by striking the item relating to section 3070
and inserting the following new item:

``3070. Army Medical Specialist Corps: organization; Chief.''.

(q) Judge Advocate General's Corps of the Army.--Section 3072 of
title 10, United States Code, is amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.

(r) Chief of Veterinary Corps of the Army.--
(1) In general.--Section 3084 of title 10, United States
Code, is amended by striking the second sentence.
(2) Conforming amendment.--The heading of such section is
amended to read as follows:
``Sec. 3084. Chief of Veterinary Corps''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 307 of such title <> is amended by striking the item relating to section 3084
and inserting the following new item:

``3084. Chief of Veterinary Corps.''.

(s) Army Aides.--
(1) In general.--Section 3543 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 343 of such title <> is amended by striking the item relating to section
3543.

(t) Principal Military Deputy to Assistant Secretary of the Navy for
RD&A.--Section 5016(b)(4)(B) of title 10, United States Code, is amended
by striking ``a vice admiral of the Navy or a lieutenant general of the
Marine Corps'' and inserting ``an officer of the Navy or the Marine
Corps''.
(u) Chief of Naval Research.--Section 5022 of title 10, United
States Code, is amended--
(1) by striking ``(1)''; and
(2) by striking paragraph (2).

(v) Chief of Legislative Affairs of the Navy.--Section 5027(a) of
title 10, United States Code, is amended by striking the second
sentence.
(w) Director for Expeditionary Warfare.--Section 5038 of title 10,
United States Code, is amended--
(1) by striking subsection (b); and
(2) by redesignating subsections (c) and (d) as subsections
(b) and (c), respectively.

(x) SJA to Commandant of the Marine Corps.--Section 5046(a) of title
10, United States Code, is amended by striking the last sentence.
(y) Legislative Assistant to Commandant of the Marine Corps.--
Section 5047 of title 10, United States Code, is amended by striking the
second sentence.
(z) Bureau Chiefs of the Navy.--
(1) In general.--Section 5133 of title 10, United States
Code, is repealed.

[[Page 2105]]

(2) Clerical amendment.--The table of sections at the
beginning of chapter 513 of such title <> is amended by striking the item relating to section
5133.

(aa) Chief of Dental Corps of the Navy.--Section 5138 of title 10,
United States Code, is amended--
(1) in subsection (a), by striking ``not below the grade of
rear admiral (lower half)''; and
(2) in subsection (c), by striking the first sentence.

(bb) Bureau of Naval Personnel.--
(1) In general.--Section 5141 of title 10, United States
Code, is amended--
(A) in subsection (a), by striking the first
sentence; and
(B) in subsection (b), by striking the first
sentence.
(2) Conforming amendment.--The heading of such section is
amended to read as follows:
``Sec. 5141. Chief of Naval Personnel; Deputy Chief of Naval
Personnel''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 513 of such title <> is amended by striking the item relating to section 5141
and inserting the following new item:

``5141. Chief of Naval Personnel; Deputy Chief of Naval Personnel.''.

(cc) Chief of Chaplains of the Navy.--Section 5142 of title 10,
United States Code, is amended by striking subsection (e).
(dd) Chief of Navy Reserve.--Section 5143(c) of title 10, United
States Code, is amended--
(1) in the subsection heading, by striking ``; Grade'';
(2) by striking ``(1)''; and
(3) by striking paragraph (2).

(ee) Commander, Marine Forces Reserve.--Section 5144(c) of title 10,
United States Code, is amended--
(1) in the subsection heading, by striking ``; Grade'';
(2) by striking ``(1)''; and
(3) by striking paragraph (2).

(ff) Judge Advocate General of the Navy.--Section 5148(b) of title
10, United States Code, is amended by striking the last sentence.
(gg) Deputy and Assistant Judge Advocates General of the Navy.--
Section 5149 of title 10, United States Code, is amended--
(1) in subsection (a)(1)--
(A) in the first sentence, by striking ``, by and
with the advice and consent of the Senate,''; and
(B) by striking the second sentence; and
(2) in each of subsections (b) and (c), by striking the
second and last sentences.

(hh) Chiefs of Staff Corps of the Navy.--Section 5150 of title 10,
United States Code, is amended--
(1) in subsection (b)(2), by striking ``Subject to
subsection (c), the Secretary'' and inserting ``The Secretary'';
and
(2) by striking subsection (c).

(ii) Principal Military Deputy to Assistant Secretary of the Air
Force for Acquisition.--Section 8016(b)(4)(B) of title

[[Page 2106]]

10, United States Code, is amended by striking ``a lieutenant general''
and inserting ``an officer''.
(jj) Chief of Legislative Liaison of the Air Force.--Section 8023(a)
of title 10, United States Code, is amended by striking the second
sentence.
(kk) Judge Advocate General and Deputy Judge Advocate General of the
Air Force.--Section 8037 of title 10, United States Code, is amended--
(1) in subsection (a), by striking the last sentence; and
(2) in subsection (d)(1), by striking the last sentence.

(ll) Chief of the Air Force Reserve.--Section 8038(c) of title 10,
United States Code, is amended--
(1) in the subsection heading, by striking ``; Grade'';
(2) by striking ``(1)''; and
(3) by striking paragraph (2).

(mm) Chief of Chaplains of the Air Force.--Section 8039 of title 10,
United States Code, is amended--
(1) in subsection (a)(1)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively; and
(2) by striking subsection (c).

(nn) Chief of Air Force Nurses.--
(1) In general.--Section 8069 of title 10, United States
Code, is amended--
(A) in subsection (a)--
(i) in the subsection heading, by striking
``Positions of Chief and Assistant Chief'' and
inserting ``Position of Chief''; and
(ii) by striking ``and assistant chief'';
(B) in subsection (b), by striking the second
sentence; and
(C) by striking subsection (c).
(2) Conforming amendment.--The heading of such section is
amended to read as follows:
``Sec. 8069. Air Force nurses: Chief; appointment''.
(3) Clerical amendment.--The table of sections at the
beginning of chapter 807 of such title <> is amended by striking the item relating to section 8069
and inserting the following new item:

``8069. Air Force nurses: Chief; appointment.''.

(oo) Assistant Surgeon General for Dental Services of the Air
Force.--Section 8081 of title 10, United States Code, is amended by
striking the second sentence.
(pp) Air Force Aides.--
(1) In general.--Section 8543 of title 10, United States
Code, is repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 843 of such title <> is amended by striking the item relating to section
8543.

(qq) Dean of Faculty of the Air Force Academy.--Section 9335(b) of
title 10, United States Code, is amended by striking the first and third
sentences.
(rr) Vice Chief of the National Guard Bureau.--Section 10505(a) of
title 10, United States Code, is amended--

[[Page 2107]]

(1) in subsection (a)(1)--
(A) in subparagraph (C), by adding ``and'' at the
end;
(B) in subparagraph (D), by striking ``; and'' at
the end and inserting a period; and
(C) by striking subparagraph (E); and
(2) by striking subsection (c).

(ss) Other Senior National Guard Bureau Officers.--Section
10506(a)(1) of title 10, United States Code, is amended in each of
subparagraphs (A) and (B)--
(1) by striking ``general''; and
(2) by striking ``, and shall hold the grade of lieutenant
general while so serving,''.
SEC. 503. NUMBER OF MARINE CORPS GENERAL OFFICERS.

(a) Distribution of Commissioned Officers on Active Duty in General
Officer and Flag Officer Grades.--Section 525(a)(4) of title 10, United
States Code, is amended--
(1) in subparagraph (B), by striking ``15'' and inserting
``17''; and
(2) in subparagraph (C), by striking ``23'' and inserting
``22''.

(b) General and Flag Officers on Active Duty.--Section 526(a)(4) of
such title is amended by striking ``61'' and inserting ``62''.
(c) Deputy Commandants.--Section 5045 of such title is amended by
striking ``six'' and inserting ``seven''.
SEC. 504. PROMOTION ELIGIBILITY PERIOD FOR OFFICERS WHOSE
CONFIRMATION OF APPOINTMENT IS DELAYED DUE
TO NONAVAILABILITY TO THE SENATE OF
PROBATIVE INFORMATION UNDER CONTROL OF
NON-DEPARTMENT OF DEFENSE AGENCIES.

Section 629(c) of title 10, United States Code, is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following new
paragraph (3):

``(3) Paragraph (1) does not apply when the Senate is not able to
obtain information necessary to give its advice and consent to the
appointment concerned because that information is under the control of a
department or agency of the Federal Government other than the Department
of Defense.''.
SEC. 505. CONTINUATION OF CERTAIN OFFICERS ON ACTIVE DUTY WITHOUT
REGARD TO REQUIREMENT FOR RETIREMENT FOR
YEARS OF SERVICE.

(a) Authority for Continuation on Active Duty.--
(1) In general.--Subchapter IV of chapter 36 of title 10,
United States Code, is amended by inserting after section 637
the following new section:
``Sec. 637a. <>  Continuation on active duty:
officers in certain military specialties and
career tracks

``(a) In General.--The Secretary of the military department
concerned may authorize an officer in a grade above grade O-4 to remain
on active duty after the date otherwise provided for the retirement of
the officer in section 633, 634, 635, or 636 of this title, as
applicable, if the officer has a military occupational

[[Page 2108]]

specialty, rating, or specialty code in a military specialty designated
pursuant to subsection (b).
``(b) Military Specialties.--Each Secretary of a military department
shall designate the military specialties in which a military
occupational specialty, rating, or specialty code, as applicable,
assigned to members of the armed forces under the jurisdiction of such
Secretary authorizes the members to be eligible for continuation on
active duty as provided in subsection (a).
``(c) Duration of Continuation.--An officer continued on active duty
pursuant to this section shall, if not earlier retired, be retired on
the first day of the month after the month in which the officer
completes 40 years of active service.
``(d) Regulations.--The Secretaries of the military departments
shall carry out this section in accordance with regulations prescribed
by the Secretary of Defense. The regulations shall specify the criteria
to be used by the Secretaries of the military departments in designating
military specialities for purposes of subsection (b).''.
(2) Clerical amendment.--The table of sections at the
beginning of subchapter IV of chapter 36 of title 10, United
States Code, <> is amended by inserting
after the item relating to section 637 the following new item:

``637a. Continuation on active duty: officers in certain military
specialties and career tracks.''.

(b) Conforming Amendments.--The following provisions of title 10,
United States Code, are amended by inserting ``or 637a'' after
``637(b)'':
(1) Section 633(a).
(2) Section 634(a).
(3) Section 635.
(4) Section 636(a).
SEC. 506. EQUAL CONSIDERATION OF OFFICERS FOR EARLY RETIREMENT OR
DISCHARGE.

Section 638a of title 10, United States Code, is amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
``(4) Convening selection boards under section 611(b) of
this title to consider for early retirement or discharge regular
officers on the active-duty list in a grade below lieutenant
colonel or commander--
``(A) who have served at least one year of active
duty in the grade currently held; and
``(B) whose names are not on a list of officers
recommended for promotion.'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following new
subsection (e):

``(e)(1) In the case of action under subsection (b)(4), the
Secretary of the military department concerned shall specify the total
number of officers described in that subsection that a selection board
convened under section 611(b) of this title pursuant to the authority of
that subsection may recommend for early retirement or discharge.
Officers who are eligible, or are within two years of becoming eligible,
to be retired under any provision of law (other than by reason of
eligibility pursuant to section 4403 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102-484)), if
selected by the board, shall be retired or retained until

[[Page 2109]]

becoming eligible to retire under section 3911, 6323, or 8911 of this
title, and those officers who are otherwise ineligible to retire under
any provision of law shall, if selected by the board, be discharged.
``(2) In the case of action under subsection (b)(4), the Secretary
of the military department concerned may submit to a selection board
convened pursuant to that subsection--
``(A) the names of all eligible officers described in that
subsection, whether or not they are eligible to be retired under
any provision of law, in a particular grade and competitive
category; or
``(B) the names of all eligible officers described in that
subsection in a particular grade and competitive category,
whether or not they are eligible to be retired under any
provision of law, who are also in particular year groups,
specialties, or retirement categories, or any combination
thereof, with that competitive category.

``(3) The number of officers specified under paragraph (1) may not
be more than 30 percent of the number of officers considered.
``(4) An officer who is recommended for discharge by a selection
board convened pursuant to the authority of subsection (b)(4) and whose
discharge is approved by the Secretary concerned shall be discharged on
a date specified by the Secretary concerned.
``(5) Selection of officers for discharge under this subsection
shall be based on the needs of the service.''.
SEC. 507. MODIFICATION OF AUTHORITY TO DROP FROM ROLLS A
COMMISSIONED OFFICER.

Section 1161(b) of title 10, United States Code, is amended by
inserting ``or the Secretary of Defense, or in the case of a
commissioned officer of the Coast Guard, the Secretary of the department
in which the Coast Guard is operating when it is not operating in the
Navy,'' after ``President''.
SEC. 508. EXTENSION OF FORCE MANAGEMENT AUTHORITIES ALLOWING
ENHANCED FLEXIBILITY FOR OFFICER PERSONNEL
MANAGEMENT.

(a) Temporary Early Retirement Authority.--Section 4403(i) of the
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293
note) is amended by striking ``December 31, 2018'' and inserting
``December 31, 2025''.
(b) Continuation on Active Duty.--Section 638a(a)(2) of title 10,
United States Code, is amended by striking ``December 31, 2018'' and
inserting ``December 31, 2025''.
(c) Voluntary Separation Pay.--Section 1175a(k)(1) of such title is
amended by striking ``December 31, 2018'' and inserting ``December 31,
2025''.
(d) Service-in-Grade Waivers.--Section 1370(a)(2)(F) of such title
is amended by striking ``2018'' and inserting ``2025''.
SEC. 509. <>  PILOT PROGRAMS ON DIRECT
COMMISSIONS TO CYBER POSITIONS.

(a) Pilot Programs Authorized.--Each Secretary of a military
department may carry out a pilot program to improve the ability of an
Armed Force under the jurisdiction of the Secretary to recruit cyber
professionals.
(b) Elements.--Under a pilot program established under this section,
an individual who meets educational, physical, and other

[[Page 2110]]

requirements determined appropriate by the Secretary of the military
department concerned may receive an original appointment as a
commissioned officer in a cyber specialty.
(c) Consultation.--In developing a pilot program for the Army or the
Air Force under this section, the Secretary of the Army and the
Secretary of the Air Force may consult with the Secretary of the Navy
with respect to an existing, similar program carried out by the
Secretary of the Navy.
(d) Duration.--
(1) Commencement.--The Secretary of a military department
may commence a pilot program under this section on or after
January 1, 2017.
(2) Termination.--All pilot programs under this section
shall terminate no later than December 31, 2022.

(e) Status Report.--Not later than January 1, 2020, each Secretary
of a military department who conducts a pilot program under this section
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report containing an evaluation of the
success of the program in obtaining skilled cyber personnel for the
Armed Forces.
SEC. 510. LENGTH OF JOINT DUTY ASSIGNMENTS.

(a) In General.--Subsection (a) of section 664 of title 10, United
States Code, is amended by striking ``assignment--'' and all that
follows and inserting ``assignment shall be not less than two years.''.
(b) Repeal of Authority for Shorter Length for Officers Initially
Assigned to Critical Occupational Specialties.--Such section is further
amended by striking subsection (c).
(c) Exclusions From Tour Length.--Subsection (d) of such section is
amended--
(1) in the matter preceding paragraph (1), by striking ``the
standards prescribed in subsection (a)'' and inserting ``the
requirement in subsection (a)'';
(2) in paragraph (1)(D), by striking ``assignment--'' and
all that follows and inserting ``assignment as prescribed by the
Secretary of Defense in regulations.'';
(3) by striking paragraph (2);
(4) by redesignating paragraph (3) as paragraph (2); and
(5) in paragraph (2), as redesignated by paragraph (4) of
this subsection, by striking ``the applicable standard
prescribed in subsection (a)'' and inserting ``the requirement
in subsection (a)''.

(d) Repeal of Average Tour Length Requirements.--Such section is
further amended by striking subsection (e).
(e) Full Tour of Duty.--Subsection (f) of such section is amended--
(1) in paragraph (1), by striking ``standards prescribed in
subsection (a)'' and inserting ``the requirement in subsection
(a)'';
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraphs (3), (5), and (6) as
paragraphs (2), (3), and (4), respectively; and
(4) in paragraph (4), as redesignated by paragraph (3) of
this subsection, by striking ``, but not less than two years''.

(f) Constructive Credit.--Subsection (h) of such section is
amended--

[[Page 2111]]

(1) by striking ``(1)'';
(2) by striking ``accord'' and inserting ``award''; and
(3) by striking paragraph (2).

(g) Conforming Amendments.--Such section is further amended--
(1) by redesignating subsections (d), (f), (g), and (h), as
amended by this section, as subsections (c), (d), (e), and (f),
respectively;
(2) in paragraph (2) of subsection (c), as so redesignated
and amended, by striking ``subsection (f)(3)'' and inserting
``subsection (d)(2)''.
(3) paragraph (2) of subsection (d), as so redesignated and
amended, by striking ``subsection (g)'' and inserting
``subsection (e)'';
(4) in subsection (e), as so redesignated and amended, by
striking ``subsection (f)(3)'' and inserting ``subsection
(d)(2)''; and
(5) in subsection (f), as so redesignated and amended, by
striking ``paragraphs (1), (2), and (4) of subsection (f)'' and
inserting ``subsection (d)(1)''.
SEC. 510A. REVISION OF DEFINITIONS USED FOR JOINT OFFICER
MANAGEMENT.

(a) Definition of Joint Matters.--Paragraph (1) of section 668(a) of
title 10, United States Code, is amended to read as follows:
``(1) In this chapter, the term `joint matters' means matters
related to any of the following:
``(A) The development or achievement of strategic objectives
through the synchronization, coordination, and organization of
integrated forces in operations conducted across domains, such
as land, sea, or air, in space, or in the information
environment, including matters relating to any of the following:
``(i) National military strategy.
``(ii) Strategic planning and contingency planning.
``(iii) Command and control, intelligence, fires,
movement and maneuver, protection or sustainment of
operations under unified command.
``(iv) National security planning with other
departments and agencies of the United States.
``(v) Combined operations with military forces of
allied nations.
``(B) Acquisition matters conducted by members of the armed
forces and covered under chapter 87 of this title involved in
developing, testing, contracting, producing, or fielding of
multi-service programs or systems.
``(C) Other matters designated in regulation by the
Secretary of Defense in consultation with the Chairman of the
Joint Chiefs of Staff.''.

(b) Definition of Integrated Forces.--Section 668(a)(2) of title 10,
United States Code, is amended in the matter preceding subparagraph
(A)--
(1) by striking ``integrated military forces'' and inserting
``integrated forces''; and
(2) by striking ``the planning or execution (or both) of
operations involving'' and inserting ``achieving unified action
with''.

[[Page 2112]]

(c) Definition of Joint Duty Assignment.--Section 668(b)(1) of title
10, United States Code, is amended by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) shall be limited to assignments in which--
``(i) the preponderance of the duties of the officer
involve joint matters and
``(ii) the officer gains significant experience in
joint matters; and''.

(d) Repeal of Definition of Critical Occupational Speciality.--
Section 668 of title 10, United States Code, is amended by striking
subsection (d).

Subtitle B--Reserve Component Management

SEC. 511. AUTHORITY FOR TEMPORARY WAIVER OF LIMITATION ON TERM OF
SERVICE OF VICE CHIEF OF THE NATIONAL
GUARD BUREAU.

Section 10505(a)(4) of title 10, United States Code, is amended by
striking ``paragraph (3)(B) for a limited period of time'' and inserting
``paragraph (3) for not more than 90 days''.
SEC. 512. RIGHTS AND PROTECTIONS AVAILABLE TO MILITARY
TECHNICIANS.

(a) In General.--Section 709 of title 32, United States Code, is
amended--
(1) in subsection (f)--
(A) in paragraph (4), by striking ``; and'' and
inserting ``when the appeal concerns activity occurring
while the member is in a military pay status, or
concerns fitness for duty in the reserve components;'';
(B) by redesignating paragraph (5) as paragraph (6);
and
(C) by inserting after paragraph (4) the following
new paragraph (5):
``(5) with respect to an appeal concerning any activity not
covered by paragraph (4), the provisions of sections 7511, 7512,
and 7513 of title 5, and section 717 of the Civil Rights Act of
1991 (42 U.S.C. 2000e-16) shall apply; and''; and
(2) in subsection (g), by striking ``Sections'' and
inserting ``Except as provided in subsection (f), sections''.

(b) Definitions.--Section 709 of title 32, United States Code, is
further amended by adding at the end the following new subsection:
``(j) In this section:
``(1) The term `military pay status' means a period of
service where the amount of pay payable to a technician for that
service is based on rates of military pay provided for under
title 37.
``(2) The term `fitness for duty in the reserve components'
refers only to military-unique service requirements that attend
to military service generally, including service in the reserve
components or service on active duty.''.

(c) Conforming Amendment.--Section 7511(b) of title 5, United States
Code, is amended by striking paragraph (5).

[[Page 2113]]

SEC. 513. INAPPLICABILITY OF CERTAIN LAWS TO NATIONAL GUARD
TECHNICIANS PERFORMING ACTIVE GUARD AND
RESERVE DUTY.

Section 709(g) of title 32, United States Code, as amended by
section 512(a)(2), is further amended--
(1) by inserting ``(1)'' after ``(g)''; and
(2) by adding at the end the following new paragraph:

``(2) In addition to the sections referred to in paragraph (1),
section 6323(a)(1) of title 5 also does not apply to a person employed
under this section who is performing active Guard and Reserve duty (as
that term is defined in section 101(d)(6) of title 10).''.
SEC. 514. EXTENSION OF REMOVAL OF RESTRICTIONS ON THE TRANSFER OF
OFFICERS BETWEEN THE ACTIVE AND INACTIVE
NATIONAL GUARD.

Section 512 of the National Defense Authorization Act for Fiscal
Year 2014 (Public Law 113-66; 127 Stat. 752; 32 U.S.C. prec. 301 note)
is amended--
(1) in subsection (a) in the matter preceding paragraph (1),
by striking ``December 31, 2016'' and inserting ``December 31,
2019''; and
(2) in subsection (b) in the matter preceding paragraph (1),
by striking ``December 31, 2016'' and inserting ``December 31,
2019''.
SEC. 515. EXTENSION OF TEMPORARY AUTHORITY TO USE AIR FORCE
RESERVE COMPONENT PERSONNEL TO PROVIDE
TRAINING AND INSTRUCTION REGARDING PILOT
TRAINING.

Section 514(a)(1) of the National Defense Authorization Act for
Fiscal Year 2016 (Public Law 114-92; 129 Stat. 810) is amended by
inserting ``and fiscal year 2017'' after ``During fiscal year 2016''.
SEC. 516. EXPANSION OF ELIGIBILITY FOR DEPUTY COMMANDER OF
COMBATANT COMMAND HAVING UNITED STATES
AMONG GEOGRAPHIC AREA OF RESPONSIBILITY TO
INCLUDE OFFICERS OF THE RESERVES.

Section 164(e)(4) of title 10, United States Code, is amended--
(1) by striking ``the National Guard'' and inserting ``a
reserve component of the armed forces''; and
(2) by striking ``a National Guard officer'' and inserting
``a reserve component officer''.

Subtitle C--General Service Authorities

SEC. 521. MATTERS RELATING TO PROVISION OF LEAVE FOR MEMBERS OF
THE ARMED FORCES, INCLUDING PROHIBITION ON
LEAVE NOT EXPRESSLY AUTHORIZED BY LAW.

(a) Primary and Secondary Caregiver Leave.--Section 701 of title 10,
United States Code, is amended--
(1) by striking subsections (i) and (j); and
(2) by inserting after subsection (h) the following new
subsections (i) and (j):

``(i)(1)(A) Under regulations prescribed by the Secretary of
Defense, a member of the armed forces described in paragraph (2) who is
the primary caregiver in the case of the birth of a child is allowed up
to twelve weeks of total leave, including up

[[Page 2114]]

to six weeks of medical convalescent leave, to be used in connection
with such birth.
``(B) Under the regulations prescribed for purposes of this
subsection, a member of the armed forces described in paragraph (2) who
is the primary caregiver in the case of the adoption of a child is
allowed up to six weeks of total leave to be used in connection with
such adoption.
``(2) Paragraph (1) applies to the following members:
``(A) A member on active duty.
``(B) A member of a reserve component performing active
Guard and Reserve duty.
``(C) A member of a reserve component subject to an active
duty recall or mobilization order in excess of 12 months.

``(3) The Secretary shall prescribe in the regulations referred to
in paragraph (1) a definition of the term `primary caregiver' for
purposes of this subsection.
``(4) Notwithstanding paragraph (1)(A), a member may receive more
than six weeks of medical convalescent leave in connection with the
birth of a child, but only if the additional medical convalescent
leave--
``(A) is specifically recommended, in writing, by the
medical provider of the member to address a diagnosed medical
condition; and
``(B) is approved by the commander of the member.

``(5) Any leave taken by a member under this subsection, including
leave under paragraphs (1) and (4), may be taken only in one increment
in connection with such birth or adoption.
``(6)(A) Any leave authorized by this subsection that is not taken
within one year of such birth or adoption shall be forfeited.
``(B) Any leave authorized by this subsection for a member of a
reserve component on active duty that is not taken by the time the
member is separated from active duty shall be forfeited at that time.
``(7) The period of active duty of a member of a reserve component
may not be extended in order to permit the member to take leave
authorized by this subsection.
``(8) Under the regulations prescribed for purposes of this
subsection, a member taking leave under paragraph (1) may, as a
condition for taking such leave, be required--
``(A) to accept an extension of the member's current service
obligation, if any, by one week for every week of leave taken
under paragraph (1); or
``(B) to incur a reduction in the member's leave account by
one week for every week of leave taken under paragraph (1).

``(9)(A) Leave authorized by this subsection is in addition to any
other leave provided under other provisions of this section.
``(B) Medical convalescent leave under paragraph (4) is in addition
to any other leave provided under other provisions of this subsection.
``(10)(A) Subject to subparagraph (B), a member taking leave under
paragraph (1) during a period of obligated service shall not be eligible
for terminal leave, or to sell back leave, at the end such period of
obligated service.
``(B) Under the regulations for purposes of this subsection, the
Secretary concerned may waive, whether in whole or in part, the
applicability of subparagraph (A) to a member who reenlists

[[Page 2115]]

at the end of the member's period of obligated service described in that
subparagraph if the Secretary determines that the waiver is in the
interests of the armed force concerned.
``(j)(1) Under regulations prescribed by the Secretary of Defense, a
member of the armed forces described in subsection (i)(2) who is the
secondary caregiver in the case of the birth of a child or the adoption
of a child is allowed up to 21 days of leave to be used in connection
with such birth or adoption.
``(2) The Secretary shall prescribe in the regulations referred to
in paragraph (1) a definition of the term `secondary caregiver' for
purposes of this subsection.
``(3) Any leave taken by a member under this subsection may be taken
only in one increment in connection with such birth or adoption.
``(4) Under the regulations prescribed for purposes of this
subsection, paragraphs (6) through (10) of subsection (i) (other than
paragraph (9)(B) of such subsection) shall apply to leave, and the
taking of leave, authorized by this subsection.''.
(b) Prohibition on Leave Not Expressly Authorized by Law.--
(1) Prohibition.--Chapter 40 of title 10, United States
Code, is amended by inserting after section 704 the following
new section:
``Sec. 704a. <>  Administration of leave:
prohibition on authorizing, granting, or
assigning leave not expressly authorized by law

``No member or category of members of the armed forces may be
authorized, granted, or assigned leave, including uncharged leave, not
expressly authorized by a provision of this chapter or another statute
unless expressly authorized by an Act of Congress enacted after the date
of the enactment of the National Defense Authorization Act for Fiscal
Year 2017.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 40 of title 10, <> United States Code, is amended by inserting after the
item relating to section 704 the following new item:

``704a. Administration of leave: prohibition on authorizing, granting,
or assigning leave not expressly authorized by law.''.

SEC. 522. TRANSFER OF PROVISION RELATING TO EXPENSES INCURRED IN
CONNECTION WITH LEAVE CANCELED DUE TO
CONTINGENCY OPERATIONS.

(a) Enactment in Title 10, United States Code, of Authority for
Reimbursement of Expenses.--Chapter 40 of title 10, United States Code,
is amended by inserting after section 709 the following new section:
``Sec. 709a. <>  Expenses incurred in
connection with leave canceled due to
contingency operations: reimbursement

``(a) Authorization To Reimburse.--The Secretary concerned may
reimburse a member of the armed forces under the jurisdiction of the
Secretary for travel and related expenses (to the extent not otherwise
reimbursable under law) incurred by the member as a result of the
cancellation of previously approved leave when--
``(1) the leave is canceled in connection with the member's
participation in a contingency operation; and

[[Page 2116]]

``(2) the cancellation occurs within 48 hours of the time
the leave would have commenced.

``(b) Regulations.--The Secretary of Defense and, in the case of the
Coast Guard when it is not operating as a service in the Navy, the
Secretary of Homeland Security shall prescribe regulations to establish
the criteria for the applicability of subsection (a).
``(c) Conclusiveness of Settlement.--The settlement of an
application for reimbursement under subsection (a) is final and
conclusive.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 40 of such title is <> amended by
inserting after the item relating to section 709 the following new item:

``709a. Expenses incurred in connection with leave canceled due to
contingency operations: reimbursement.''.

(c) Repeal of Superseded Authority.--Section 453 of title 37, United
States Code, is amended by striking subsection (g).
SEC. 523. EXPANSION OF AUTHORITY TO EXECUTE CERTAIN MILITARY
INSTRUMENTS.

(a) Expansion of Authority To Execute Military Testamentary
Instruments.--Section 1044d(c) of title 10, United States Code, is
amended--
(1) by striking paragraph (2) and inserting the following:
``(2) the execution of the instrument is notarized by--
``(A) a military legal assistance counsel;
``(B) a person who is authorized to act as a notary
under section 1044a of this title who--
``(i) is not an attorney; and
``(ii) is supervised by a military legal
assistance counsel; or
``(C) a State-licensed notary employed by a military
department or the Coast Guard who is supervised by a
military legal assistance counsel;''; and
(2) in paragraph (3), by striking ``presiding attorney'' and
inserting ``person notarizing the instrument in accordance with
paragraph (2)''.

(b) Expansion of Authority To Notarize Documents to Civilians
Serving in Military Legal Assistance Offices.--Section 1044a(b) of title
10, United States Code, is amended by adding at the end the following
new paragraph:
``(6) All civilian paralegals serving at military legal
assistance offices, supervised by a military legal assistance
counsel (as defined in section 1044d(g) of this title).''.
SEC. 524. MEDICAL EXAMINATION BEFORE ADMINISTRATIVE SEPARATION FOR
MEMBERS WITH POST-TRAUMATIC STRESS
DISORDER OR TRAUMATIC BRAIN INJURY IN
CONNECTION WITH SEXUAL ASSAULT.

Section 1177(a)(1) of title 10, United States Code, is amended--
(1) by inserting ``, or sexually assaulted,'' after
``deployed overseas in support of a contingency operation''; and
(2) by inserting ``or based on such sexual assault,'' after
``while deployed,''.

[[Page 2117]]

SEC. 525. REDUCTION OF TENURE ON THE TEMPORARY DISABILITY RETIRED
LIST.

(a) Reduction of Tenure.--Section 1210 of title 10, United States
Code, is amended--
(1) in subsection (b), by striking ``five years'' and
inserting ``three years''; and
(2) in subsection (h), by striking ``five years'' and
inserting ``three years''.

(b) <>  Applicability.--The amendments made
by subsection (a) shall take effect on January 1, 2017, and shall apply
to members of the Armed Forces whose names are placed on the temporary
disability retired list on or after that date.
SEC. 526. TECHNICAL CORRECTION TO VOLUNTARY SEPARATION PAY AND
BENEFITS.

Section 1175a(j) of title 10, United States Code, is amended--
(1) in paragraph (2)--
(A) by striking ``or 12304'' and inserting ``12304,
12304a, or 12304b''; and
(B) by striking ``502(f)(1)'' and inserting
``502(f)(1)(A)''; and
(2) in paragraph (3), by striking ``502(f)(2)'' and
inserting ``502(f)(1)(B)''.
SEC. 527. <>  CONSOLIDATION OF ARMY
MARKETING AND PILOT PROGRAM ON
CONSOLIDATED ARMY RECRUITING.

(a) Consolidation of Army Marketing.--Not later than October 1,
2017, the Secretary of the Army shall consolidate into a single
organization within the Department of the Army all functions relating to
the marketing of the Army and each of the components of the Army in
order to assure unity of effort and cost effectiveness in the marketing
of the Army and each of the components of the Army.
(b) Pilot Program on Consolidated Army Recruiting.--
(1) Pilot program required.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of the Army
shall carry out a pilot program to consolidate the recruiting
efforts of the Regular Army, Army Reserve, and Army National
Guard under which a recruiter in one of the components
participating in the pilot program may recruit individuals to
enlist in any of the components regardless of the funding source
of the recruiting activity.
(2) Credit toward enlistment goals.--Under the pilot
program, a recruiter shall receive credit toward periodic
enlistment goals for each enlistment regardless of the component
in which the individual enlists.
(3) Duration.--The Secretary shall carry out the pilot
program for a period of not less than three years.

(c) Briefing and Reports.--
(1) Briefing on consolidation plan.--Not later than March 1,
2017, the Secretary of the Army shall provide to the Committees
on Armed Services of the Senate and the House of Representatives
a briefing on the Secretary's plan to carry out the Army
marketing consolidation required by subsection (a).
(2) Interim report on pilot program.--

[[Page 2118]]

(A) In general.--Not later than one year after the
date on which the pilot program under subsection (b)
commences, the Secretary shall submit to the
congressional committees specified in paragraph (1) a
report on the pilot program.
(B) Elements.--The report under subparagraph (A)
shall include each of the following:
(i) An analysis of the effects that
consolidated recruiting efforts has on the overall
ability of recruiters to attract and place
qualified candidates.
(ii) A determination of the extent to which
consolidating recruiting efforts affects
efficiency and recruiting costs.
(iii) An analysis of any challenges associated
with a recruiter working to recruit individuals to
enlist in a component in which the recruiter has
not served.
(iv) An analysis of the satisfaction of
recruiters and the component recruiting commands
with the pilot program.
(3) Final report on pilot program.--Not later than 180 days
after the date on which the pilot program is completed, the
Secretary shall submit to the congressional committees specified
in paragraph (1) a final report on the pilot program. The final
report shall include any recommendations of the Secretary with
respect to extending or making permanent the pilot program and a
description of any related legislative actions that the
Secretary considers appropriate.

Subtitle D--Member Whistleblower Protections and Correction of Military
Records

SEC. 531. IMPROVEMENTS TO WHISTLEBLOWER PROTECTION PROCEDURES.

(a) Actions Treatable as Prohibited Personnel Actions.--Paragraph
(2) of section 1034(b) of title 10, United States Code, is amended to
read as follows:
``(2)(A) The actions considered for purposes of this section to be a
personnel action prohibited by this subsection shall include any action
prohibited by paragraph (1), including any of the following:
``(i) The threat to take any unfavorable action.
``(ii) The withholding, or threat to withhold, any favorable
action.
``(iii) The making of, or threat to make, a significant
change in the duties or responsibilities of a member of the
armed forces not commensurate with the member's grade.
``(iv) The failure of a superior to respond to any
retaliatory action or harassment (of which the superior had
actual knowledge) taken by one or more subordinates against a
member.
``(v) The conducting of a retaliatory investigation of a
member.

``(B) In this paragraph, the term `retaliatory investigation' means
an investigation requested, directed, initiated, or conducted for the
primary purpose of punishing, harassing, or ostracizing a member of the
armed forces for making a protected communication.

[[Page 2119]]

``(C) Nothing in this paragraph shall be construed to limit the
ability of a commander to consult with a superior in the chain of
command, an inspector general, or a judge advocate general on the
disposition of a complaint against a member of the armed forces for an
allegation of collateral misconduct or for a matter unrelated to a
protected communication. Such consultation shall provide an affirmative
defense against an allegation that a member requested, directed,
initiated, or conducted a retaliatory investigation under this
section.''.
(b) Action in Response to Hardship in Connection With Personnel
Actions.--Section 1034 of title 10, United States Code, is amended--
(1) in subsection (c)(4)--
(A) by redesignating subparagraph (E) as
subparagraph (F); and
(B) by inserting after subparagraph (D) the
following new subparagraph (E):

``(E) If the Inspector General makes a preliminary determination in
an investigation under subparagraph (D) that, more likely than not, a
personnel action prohibited by subsection (b) has occurred and the
personnel action will result in an immediate hardship to the member
alleging the personnel action, the Inspector General shall promptly
notify the Secretary of the military department concerned or the
Secretary of Homeland Security, as applicable, of the hardship, and such
Secretary shall take such action as such Secretary considers
appropriate.''; and
(2) in subsection (e)(1), by striking ``subsection
(c)(4)(E)'' and inserting ``subsection (c)(4)(F)''.

(c) Periodic Notice to Members on Progress of Inspector General
Investigations.--Paragraph (3) of section 1034(e) of title 10, United
States Code, is amended to read as follows:
``(3)(A) Not later than 180 days after the commencement of an
investigation of an allegation under subsection (c)(4), and every 180
days thereafter until the transmission of the report on the
investigation under paragraph (1) to the member concerned, the Inspector
General conducting the investigation shall submit a notice on the
investigation described in subparagraph (B) to the following:
``(i) The member.
``(ii) The Secretary of Defense.
``(iii) The Secretary of the military department concerned,
or the Secretary of Homeland Security in the case of a member of
the Coast Guard when the Coast Guard is not operating as a
service in the Navy.

``(B) Each notice on an investigation under subparagraph (A) shall
include the following:
``(i) A description of the current progress of the
investigation.
``(ii) An estimate of the time remaining until the
completion of the investigation and the transmittal of the
report required by paragraph (1) to the member concerned.''.

(d) Correction of Records.--Paragraph (2) of section 1034(g) of
title 10, United States Code, is amended to read as follows:
``(2) In resolving an application described in paragraph (1) for
which there is a report of the Inspector General under subsection
(e)(1), a correction board--
``(A) shall review the report of the Inspector General;

[[Page 2120]]

``(B) may request the Inspector General to gather further
evidence;
``(C) may receive oral argument, examine and cross-examine
witnesses, and take depositions; and
``(D) shall consider a request by a member or former member
in determining whether to hold an evidentiary hearing.''.

(e) <>  Uniform Standards for Inspector
General Investigations of Prohibited Personnel Actions and Other
Matters.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Inspector General of the
Department of Defense shall prescribe uniform standards for the
following:
(A) The investigation of allegations of prohibited
personnel actions under section 1034 of title 10, United
States Code (as amended by this section), by the
Inspector General and the Inspectors General of the
military departments.
(B) The training of the staffs of the Inspectors
General referred to in subparagraph (A) on the conduct
of investigations described in that subparagraph.
(2) Use.--Commencing 180 days after prescription of the
standards required by paragraph (1), the Inspectors General
referred to in that paragraph shall comply with such standards
in the conduct of investigations described in that paragraph and
in the training of the staffs of such Inspectors General in the
conduct of such investigations.
SEC. 532. MODIFICATION OF WHISTLEBLOWER PROTECTION AUTHORITIES TO
RESTRICT CONTRARY FINDINGS OF PROHIBITED
PERSONNEL ACTION BY THE SECRETARY
CONCERNED.

(a) In General.--Section 1034(f) of title 10, United States Code, is
amended--
(1) in the subsection heading, by striking ``Violations''
and inserting ``Substantiated Violations''; and
(2) in paragraph (1), by striking ``there is sufficient
basis'' and all that follows and inserting ``corrective or
disciplinary action should be taken. If the Secretary concerned
determines that corrective or disciplinary action should be
taken, the Secretary shall take appropriate corrective or
disciplinary action.''.

(b) Actions Following Determinations.--Paragraph (2) of such section
is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``the Secretary concerned determines
under paragraph (1)'' and inserting ``the Inspector
General determines''; and
(B) by striking ``the Secretary shall'' and
inserting ``the Secretary concerned shall'';
(2) in subparagraph (A), by inserting ``, including
referring the report to the appropriate board for the correction
of military records'' before the semicolon; and
(3) by striking subparagraph (B) and inserting the following
new subparagraph (B):
``(B) submit to the Inspector General a report on the
actions taken by the Secretary pursuant to this paragraph, and
provide for the inclusion of a summary of the report under this
subparagraph (with any personally identifiable information
redacted) in the semiannual report to Congress of the Inspector
General

[[Page 2121]]

of the Department of Defense or the Inspector General of the
Department of Homeland Security, as applicable, under section 5
of the Inspector General Act of 1978 (5 U.S.C. App.).''.

(c) <>  Effective Date.--The amendments
made by this section shall take effect on the date of the enactment of
this Act, and shall apply with respect to reports received by the
Secretaries of the military departments and the Secretary of Homeland
Security under section 1034(e) of title 10, United States Code, on or
after that date.
SEC. 533. AVAILABILITY OF CERTAIN CORRECTION OF MILITARY RECORDS
AND DISCHARGE REVIEW BOARD INFORMATION
THROUGH THE INTERNET.

(a) Board for the Correction of Military Records.--Section 1552 of
title 10, United States Code, is amended--
(1) by redesignating subsection (h) as subsection (i); and
(2) by inserting after subsection (g) the following new
subsection (h):

``(h) Each board established under this section shall make available
to the public each calender quarter, on an Internet website of the
military department concerned or the Department of Homeland Security, as
applicable, that is available to the public the following:
``(1) The number of claims considered by such board during
the calendar quarter preceding the calender quarter in which
such information is made available, including cases in which a
mental health condition of the claimant, including post-
traumatic stress disorder or traumatic brain injury, is alleged
to have contributed, whether in whole or part, to the original
characterization of the discharge or release of the claimant.
``(2) The number of claims submitted during the calendar
quarter preceding the calender quarter in which such information
is made available that relate to service by a claimant during a
war or contingency operation, catalogued by each war or
contingency operation.
``(3) The number of military records corrected pursuant to
the consideration described in paragraph (1) to upgrade the
characterization of discharge or release of claimants.''.

(b) Discharge Review Board.--Section 1553 of title 10, United States
Code, is amended by adding at the end the following new subsection:
``(f) Each board established under this section shall make available
to the public each calender quarter, on an Internet website of the
military department concerned or the Department of Homeland Security, as
applicable, that is available to the public the following:
``(1) The number of motions or requests for review
considered by such board during the calendar quarter preceding
the calender quarter in which such information is made
available, including cases in which a mental health condition of
the former member, including post-traumatic stress disorder or
traumatic brain injury, is alleged to have contributed, whether
in whole or part, to the original characterization of the
discharge or dismissal of the former member.
``(2) The number of claims submitted during the calendar
quarter preceding the calender quarter in which such information
is made available that relate to service by a claimant

[[Page 2122]]

during a war or contingency operation, catalogued by each war or
contingency operation.
``(3) The number of discharges or dismissals corrected
pursuant to the consideration described in paragraph (1) to
upgrade the characterization of discharge or dismissal of former
members.''.
SEC. 534. IMPROVEMENTS TO AUTHORITIES AND PROCEDURES FOR THE
CORRECTION OF MILITARY RECORDS.

(a) Procedures of Boards.--Paragraph (3) of section 1552(a) of title
10, United States Code, is amended--
(1) by inserting ``(A)'' after ``(3)''; and
(2) by adding at the end the following new subparagraphs:

``(B) If a board makes a preliminary determination that a claim
under this section lacks sufficient information or documents to support
the claim, the board shall notify the claimant, in writing, indicating
the specific information or documents necessary to make the claim
complete and reviewable by the board.
``(C) If a claimant is unable to provide military personnel or
medical records applicable to a claim under this section, the board
shall make reasonable efforts to obtain the records. A claimant shall
provide the board with documentary evidence of the efforts of the
claimant to obtain such records. The board shall inform the claimant of
the results of the board's efforts, and shall provide the claimant
copies of any records so obtained upon request of the claimant.
``(D) Any request for reconsideration of a determination of a board
under this section, no matter when filed, shall be reconsidered by a
board under this section if supported by materials not previously
presented to or considered by the board in making such determination.''.
(b) Publication of Final Decisions of Boards.--Such section is
further amended by adding at the end the following new paragraph:
``(5) Each final decision of a board under this subsection shall be
made available to the public in electronic form on a centralized
Internet website. In any decision so made available to the public there
shall be redacted all personally identifiable information.''.
(c) <>  Training of Members of Boards.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, each Secretary concerned shall
develop and implement a comprehensive training curriculum for
members of boards for the correction of military records under
the jurisdiction of such Secretary in the duties of such boards
under section 1552 of title 10, United States Code. The
curriculum shall address all areas of administrative law
applicable to the duties of such boards.
(2) Uniform curricula.--The Secretary of Defense and the
Secretary of Homeland Security shall jointly ensure that the
curricula developed and implemented pursuant to this subsection
are, to the extent practicable, uniform.
(3) Training.--
(A) In general.--Each member of a board for the
correction of military records shall undergo retraining
(consistent with the curriculum developed and
implemented pursuant to this subsection) regarding the
duties of boards for the correction of military records
under section 1552

[[Page 2123]]

of title 10, United States Code, at least once every
five years during the member's tenure on the board.
(B) Current members.--Each member of a board for the
correction of military records as of the date of the
implementation of the curriculum required by paragraph
(1) (in this paragraph referred to as the ``curriculum
implementation date'') shall undergo training described
in subparagraph (A) not later than 90 days after the
curriculum implementation date.
(C) New members.--Each individual who becomes a
member of a board for the correction of military records
after the curriculum implementation date shall undergo
training described in subparagraph (A) by not later than
90 days after the date on which such individual becomes
a member of the board.
(4) Reports.--Not later than 18 months after the date of the
enactment of this Act, each Secretary concerned shall submit to
Congress a report setting forth the following:
(A) A description and assessment of the progress
made by such Secretary in implementing training
requirements for members of boards for the correction of
military records under the jurisdiction of such
Secretary.
(B) A detailed description of the training
curriculum required of such Secretary by paragraph (1).
(C) A description and assessment of any impediments
to the implementation of training requirements for
members of boards for the correction of military records
under the jurisdiction of such Secretary.
(5) Secretary concerned defined.--In this subsection, the
term ``Secretary concerned'' means a ``Secretary concerned'' as
that term is used in section 1552 of title 10, United States
Code.
SEC. 535. TREATMENT BY DISCHARGE REVIEW BOARDS OF CLAIMS ASSERTING
POST-TRAUMATIC STRESS DISORDER OR
TRAUMATIC BRAIN INJURY IN CONNECTION WITH
COMBAT OR SEXUAL TRAUMA AS A BASIS FOR
REVIEW OF DISCHARGE.

Section 1553(d) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(3)(A) In addition to the requirements of paragraphs (1) and (2),
in the case of a former member described in subparagraph (B), the Board
shall--
``(i) review medical evidence of the Secretary of Veterans
Affairs or a civilian health care provider that is presented by
the former member; and
``(ii) review the case with liberal consideration to the
former member that post-traumatic stress disorder or traumatic
brain injury potentially contributed to the circumstances
resulting in the discharge of a lesser characterization.

``(B) A former member described in this subparagraph is a former
member described in paragraph (1) or a former member whose application
for relief is based in whole or in part on matters relating to post-
traumatic stress disorder or traumatic brain injury as supporting
rationale, or as justification for priority consideration, whose post-
traumatic stress disorder or traumatic brain injury is

[[Page 2124]]

related to combat or military sexual trauma, as determined by the
Secretary concerned.''.
SEC. 536. COMPTROLLER GENERAL OF THE UNITED STATES REVIEW OF
INTEGRITY OF DEPARTMENT OF DEFENSE
WHISTLEBLOWER PROGRAM.

(a) Report Required.--Not later than 18 months after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report setting forth a review of the
integrity of the Department of Defense whistleblower program.
(b) Elements.--The review for purposes of the report required by
subsection (a) shall include the following elements:
(1) An assessment of the extent to which the Department of
Defense whistleblower program meets executive branch policies
and goals for whistleblower protections.
(2) An assessment of the adequacy of procedures to handle
and address complaints submitted by employees in the Office of
the Inspector General of the Department of Defense to ensure
that such employees themselves are able to disclose a suspected
violation of law, rule, or regulation without fear of reprisal.
(3) An assessment of the extent to which there have been
violations of standards used in regard to the protection of
confidentiality provided to whistleblowers by the Inspector
General of the Department of Defense.
(4) An assessment of the extent to which there have been
incidents of retaliatory investigations against whistleblowers
within the Office of the Inspector General.
(5) An assessment of the extent to which the Inspector
General of the Department of Defense has thoroughly investigated
and substantiated allegations within the past 10 years against
civilian officials of the Department of Defense appointed to
their positions by and with the advice and consent of the
Senate, and whether Congress has been notified of the results of
such investigations.
(6) An assessment of the ability of the Inspector General of
the Department of Defense and the Inspectors General of the
military departments to access agency information necessary to
the execution of their duties, including classified and other
sensitive information, and an assessment of the adequacy of
security procedures to safeguard such classified or sensitive
information when so accessed.

Subtitle E--Military Justice and Legal Assistance Matters

SEC. 541. UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES.

(a) Clarification of Authority of Judges of the Court To Administer
Oaths and Acknowledgments.--Subsection (c) of section 936 of title 10,
United States Code (article 136 of the Uniform Code of Military
Justice), is amended to read as follows:
``(c) Each judge and senior judge of the United States Court of
Appeals for the Armed Forces shall have the powers relating

[[Page 2125]]

to oaths, affirmations, and acknowledgments provided to justices and
judges of the United States by section 459 of title 28.''.
(b) Modification of Term of Judges of the Court to Restore Rotation
of Judges.--
(1) <>  Early retirement authorized
for one current judge.--If the judge of the United States Court
of Appeals for the Armed Forces who is the junior in seniority
of the two judges of the court whose terms of office under
section 942(b)(2) of title 10, United States Code (article
142(b)(2) of the Uniform Code of Military Justice), expire on
July 31, 2021, chooses to retire one year early, that judge--
(A) may retire from service on the court effective
August 1, 2020; and
(B) shall be treated, upon such retirement, for all
purposes as having completed a term of service for which
the judge was appointed as a judge of the court.
(2) Staggering of future appointments.--Section 942(b)(2) of
title 10, United States Code (article 142(b)(2) of the Uniform
Code of Military Justice), is amended--
(A) by inserting ``(A)'' after ``(2)'';
(B) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively; and
(C) by adding at the end the following new
subparagraph:

``(B) If at the time of the appointment of a judge the date that is
otherwise applicable under subparagraph (A) for the expiration of the
term of service of the judge is the same as the date for the expiration
of the term of service of a judge already on the court, then the term of
the judge being appointed shall expire on the first July 31 after such
date on which no term of service of a judge already on the court will
expire.''.
(3) <>  Application of amendments.--
The amendments made by paragraph (2) shall apply with respect to
appointments to the United States Court of Appeals for the Armed
Forces that are made on or after the date of the enactment of
this Act.

(c) Repeal of Requirement Relating to Political Party Status of
Judges of the Court.--Section 942(b)(3) of title 10, United States Code
(article 142(b)(3) of the Uniform Code of Military Justice), is amended
by striking ``Not more than three of the judges of the court may be
appointed from the same political party, and no'' and by inserting
``No''.
(d) Modification of Daily Rate of Compensation for Senior Judges
Performing Judicial Duties With the Court.--Section 942(e)(2) of title
10, United States Code (article 142(e)(2) of the Uniform Code of
Military Justice), is amended by striking ``equal to'' and all that
follows and inserting ``equal to the difference between--
``(A) the daily equivalent of the annual rate of pay
provided for a judge of the court; and
``(B) the daily equivalent of the annuity of the judge under
section 945 of this title (article 145), the applicable
provisions of title 5, or any other retirement system for
employees of the Federal Government under which the senior judge
receives an annuity.''.

(e) Repeal of Dual Compensation Provision Relating to Judges of the
Court.--Section 945 of title 10, United States

[[Page 2126]]

Code (article 145 of the Uniform Code of Military Justice), is amended--
(1) in subsection (d), by striking ``subsection (g)(1)(B)''
and inserting ``subsection (f)(1)(B)'';
(2) by striking subsection (f); and
(3) by redesignating subsections (g), (h), and (i) as
subsections (f), (g), and (h), respectively.
SEC. 542. <>  EFFECTIVE PROSECUTION AND
DEFENSE IN COURTS-MARTIAL AND PILOT
PROGRAMS ON PROFESSIONAL MILITARY JUSTICE
DEVELOPMENT FOR JUDGE ADVOCATES.

(a) Program for Effective Prosecution and Defense.--The Secretary
concerned shall carry out a program to ensure that--
(1) trial counsel and defense counsel detailed to prosecute
or defend a court-martial have sufficient experience and
knowledge to effectively prosecute or defend the case; and
(2) a deliberate professional developmental process is in
place to ensure effective prosecution and defense in all courts-
martial.

(b) Military Justice Experience Designators or Skill Identifiers.--
The Secretary concerned shall establish and use a system of military
justice experience designators or skill identifiers for purposes of
identifying judge advocates with skill and experience in military
justice proceedings in order to ensure that judge advocates with
experience and skills identified through such experience designators or
skill identifiers are assigned to develop less experienced judge
advocates in the prosecution and defense in courts-martial under a
program carried out pursuant to subsection (a).
(c) Pilot Programs on Professional Developmental Process for Judge
Advocates.--
(1) Purpose.--The Secretary concerned shall carry out a
pilot program to assess the feasibility and advisability of
establishing a deliberate professional developmental process for
judge advocates under the jurisdiction of the Secretary that
leads to judge advocates with military justice expertise serving
as military justice practitioners capable of prosecuting and
defending complex cases in military courts-martial.
(2) Additional matters.--A pilot program may also assess
such other matters related to professional military justice
development for judge advocates as the Secretary concerned
considers appropriate.
(3) Duration.--Each pilot program shall be for a period of
five years.
(4) Report.--Not later than four years after the date of the
enactment of this Act, the Secretary concerned shall submit to
the Committees on Armed Services of the Senate and the House of
Representatives a report on the pilot programs conducted under
this section. The report shall include the following:
(A) A description and assessment of each pilot
program.
(B) Such recommendations as the Secretary considers
appropriate in light of the pilot programs, including
whether any pilot program should be extended or made
permanent.

(d) Secretary Concerned Defined.--In this section, the term
``Secretary concerned'' has the meaning given that term in section
101(a)(9) of title 10, United States Code.

[[Page 2127]]

SEC. 543. <>  INCLUSION IN ANNUAL REPORTS
ON SEXUAL ASSAULT PREVENTION AND RESPONSE
EFFORTS OF THE ARMED FORCES OF INFORMATION
ON COMPLAINTS OF RETALIATION IN CONNECTION
WITH REPORTS OF SEXUAL ASSAULT IN THE
ARMED FORCES.

Section 1631(b) of the Ike Skelton National Defense Authorization
Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 1561 note) is
amended by adding at the end the following new paragraph:
``(12) Information on each claim of retaliation in
connection with a report of sexual assault in the Armed Force
made by or against a member of such Armed Force as follows:
``(A) A narrative description of each complaint.
``(B) The nature of such complaint, including
whether the complainant claims professional or social
retaliation.
``(C) The gender of the complainant.
``(D) The gender of the individual claimed to have
committed the retaliation.
``(E) The nature of the relationship between the
complainant and the individual claimed to have committed
the retaliation.
``(F) The nature of the relationship, if any,
between the individual alleged to have committed the
sexual assault concerned and the individual claimed to
have committed the retaliation.
``(G) The official or office that received the
complaint.
``(H) The organization that investigated or is
investigating the complaint.
``(I) The current status of the investigation.
``(J) If the investigation is complete, a
description of the results of the investigation,
including whether the results of the investigation were
provided to the complainant.
``(K) If the investigation determined that
retaliation occurred, whether the retaliation was an
offense under chapter 47 of title 10, United States Code
(the Uniform Code of Military Justice).''.
SEC. 544. EXTENSION OF THE REQUIREMENT FOR ANNUAL REPORT REGARDING
SEXUAL ASSAULTS AND COORDINATION WITH
RELEASE OF FAMILY ADVOCACY PROGRAM REPORT.

Section 1631 of the Ike Skelton National Defense Authorization Act
for Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4433; 10 U.S.C. 1561
note) is amended--
(1) in subsection (a), by striking ``March 1, 2017'' and
inserting ``March 1, 2021''; and
(2) by adding at the end the following new subsection:

``(g) Coordination of Release Date Between Annual Reports Regarding
Sexual Assaults and Family Advocacy Report.--The Secretary of Defense
shall ensure that the reports required under subsection (a) for a given
year are delivered to the Committees on Armed Services of the Senate and
House of Representatives simultaneously with the Family Advocacy Program
report for that year regarding child abuse and domestic violence, as
required by section 574 of the National Defense Authorization Act for
Fiscal Year 2017.''.

[[Page 2128]]

SEC. 545. <>  METRICS FOR EVALUATING THE
EFFORTS OF THE ARMED FORCES TO PREVENT AND
RESPOND TO RETALIATION IN CONNECTION WITH
REPORTS OF SEXUAL ASSAULT IN THE ARMED
FORCES.

(a) Metrics Required.--The Sexual Assault Prevention and Response
Office of the Department of Defense shall establish and issue to the
military departments metrics to be used to evaluate the efforts of the
Armed Forces to prevent and respond to retaliation in connection with
reports of sexual assault in the Armed Forces.
(b) Best Practices.--For purposes of enhancing and achieving
uniformity in the efforts of the Armed Forces to prevent and respond to
retaliation in connection with reports of sexual assault in the Armed
Forces, the Sexual Assault Prevention and Response Office shall identify
and issue to the military departments best practices to be used in the
prevention of and response to retaliation in connection with such
reports.
SEC. 546. <>  TRAINING FOR DEPARTMENT OF
DEFENSE PERSONNEL WHO INVESTIGATE CLAIMS
OF RETALIATION.

(a) Training Regarding Nature and Consequences of Retaliation.--The
Secretary of Defense shall ensure that the personnel of the Department
of Defense specified in subsection (b) who investigate claims of
retaliation receive training on the nature and consequences of
retaliation, and, in cases involving reports of sexual assault, the
nature and consequences of sexual assault trauma. The training shall
include such elements as the Secretary shall specify for purposes of
this section.
(b) Covered Personnel.--The personnel of the Department of Defense
covered by subsection (a) are the following:
(1) Personnel of military criminal investigation services.
(2) Personnel of Inspectors General offices.
(3) Personnel of any command of the Armed Forces who are
assignable by the commander of such command to investigate
claims of retaliation made by or against members of such
command.

(c) Retaliation Defined.--In this section, the term ``retaliation''
has the meaning given the term by the Secretary of Defense in the
strategy required by section 539 of the National Defense Authorization
Act of Fiscal Year 2016 (Public Law 114-92; 129 Stat. 818) or a
subsequent meaning specified by the Secretary.
SEC. 547. <>  NOTIFICATION TO
COMPLAINANTS OF RESOLUTION OF
INVESTIGATIONS INTO RETALIATION.

(a) Notification Required.--
(1) Members of the army, navy, air force, and marine
corps.--Under regulations prescribed by the Secretary of
Defense, upon the conclusion of an investigation by an office,
element, or personnel of the Department of Defense or of the
Armed Forces of a complaint by a member of the Armed Forces of
retaliation, the member shall be informed in writing of the
results of the investigation, including whether the complaint
was substantiated, unsubstantiated, or dismissed.
(2) Members of coast guard.--The Secretary of Homeland
Security shall provide in a similar manner for notification in
writing of the results of investigations by offices, elements,
or personnel of the Department of Homeland Security or of the
Coast Guard of complaints of retaliation made by members

[[Page 2129]]

of the Coast Guard when it is not operating as a service in the
Navy.

(b) Retaliation Defined.--In this section, the term ``retaliation''
has the meaning given the term by the Secretary of Defense in the
strategy required by section 539 of the National Defense Authorization
Act of Fiscal Year 2016 (Public Law 114-92; 129 Stat. 818) or a
subsequent meaning specified by the Secretary.
SEC. 548. MODIFICATION OF DEFINITION OF SEXUAL HARASSMENT FOR
PURPOSES OF INVESTIGATIONS BY COMMANDING
OFFICERS OF COMPLAINTS OF HARASSMENT.

(a) In General.--Section 1561(e) of title 10, United States Code, is
amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``(constituting a form of sex
discrimination)''; and
(B) in subparagraph (B), by striking ``the work
environment'' and inserting ``the environment''; and
(2) in paragraph (3), by striking ``in the workplace''.

(b) <>  Effective Date.--The amendments
made by subsection (a) shall take effect on the date of the enactment of
this Act, and shall apply with respect to complaints described in
section 1561 of title 10, United States Code, that are first received by
a commanding officer or officer in charge on or after that date.
SEC. 549. <>  IMPROVED DEPARTMENT OF
DEFENSE PREVENTION OF AND RESPONSE TO
HAZING IN THE ARMED FORCES.

(a) Anti-Hazing Database.--The Secretary of Defense shall provide
for the establishment and use of a comprehensive and consistent data-
collection system for the collection of reports, including anonymous
reports, of incidents of hazing involving a member of the Armed Forces.
The Secretary shall issue department-wide guidance regarding the
availability and use of the database, including information on protected
classes, such as race and religion, who are often the victims of hazing.
(b) Improved Training.--Each Secretary of a military department, in
consultation with the Chief of Staff of each Armed Force under the
jurisdiction of such Secretary, shall seek to improve training to assist
members of the Armed Forces better recognize, prevent, and respond to
hazing at all command levels.
(c) Annual Reports on Hazing.--
(1) Report required.--Not later than January 31 of each year
through January 31, 2021, each Secretary of a military
department, in consultation with the Chief of Staff of each
Armed Force under the jurisdiction of such Secretary, shall
submit to the Committees on Armed Services of the Senate and the
House of Representatives a report containing a description of
efforts during the previous year--
(A) to prevent and to respond to incidents of hazing
involving members of the Armed Forces;
(B) to track and encourage reporting, including
reporting anonymously, incidents of hazing in the Armed
Force; and
(C) to ensure the consistent implementation of anti-
hazing policies.
(2) Additional elements.--Each report required by this
subsection also shall address the same elements originally
addressed in the anti-hazing reports required by section 534

[[Page 2130]]

of the National Defense Authorization Act for Fiscal Year 2013
(Public Law 112-239; 126 Stat. 1726).

Subtitle F--National Commission on Military, National, and Public
Service

SEC. 551. PURPOSE, SCOPE, AND DEFINITIONS.

(a) Purpose.--The purpose of this subtitle is to establish the
National Commission on Military, National, and Public Service to--
(1) conduct a review of the military selective service
process (commonly referred to as ``the draft''); and
(2) consider methods to increase participation in military,
national, and public service in order to address national
security and other public service needs of the Nation.

(b) Scope of Review.--In order to provide the fullest understanding
of the matters required under the review under subsection (a), the
Commission shall consider--
(1) the need for a military selective service process,
including the continuing need for a mechanism to draft large
numbers of replacement combat troops;
(2) means by which to foster a greater attitude and ethos of
service among United States youth, including an increased
propensity for military service;
(3) the feasibility and advisability of modifying the
military selective service process in order to obtain for
military, national, and public service individuals with skills
(such as medical, dental, and nursing skills, language skills,
cyber skills, and science, technology, engineering, and
mathematics (STEM) skills) for which the Nation has a critical
need, without regard to age or sex; and
(4) the feasibility and advisability of including in the
military selective service process, as so modified, an
eligibility or entitlement for the receipt of one or more
Federal benefits (such as educational benefits, subsidized or
secured student loans, grants or hiring preferences) specified
by the Commission for purposes of the review.

(c) Definitions.--In this subtitle:
(1) The term ``military service'' means active service (as
that term is defined in subsection (d)(3) of section 101 of
title 10, United States Code) in one of the uniformed services
(as that term is defined in subsection (a)(5) of such section).
(2) The term ``national service'' means civilian employment
in Federal or State Government in a field in which the Nation
and the public have critical needs.
(3) The term ``public service'' means civilian employment in
any non-governmental capacity, including with private for-profit
organizations and non-profit organizations (including with
appropriate faith-based organizations), that pursues and
enhances the common good and meets the needs of communities, the
States, or the Nation in sectors related to security, health,
care for the elderly, and other areas considered appropriate by
the Commission for purposes of this subtitle.

[[Page 2131]]

SEC. 552. PRELIMINARY REPORT ON PURPOSE AND UTILITY OF
REGISTRATION SYSTEM UNDER MILITARY
SELECTIVE SERVICE ACT.

(a) Report Required.--To assist the Commission in carrying out its
duties under this subtitle, the Secretary of Defense shall--
(1) submit, not later than July 1, 2017, to the Committees
on Armed Services of the Senate and the House of Representatives
and to the Commission a report on the current and future need
for a centralized registration system under the Military
Selective Service Act (50 U.S.C. 3801 et seq.); and
(2) provide a briefing on the results of the report.

(b) Elements of Report.--The report required by subsection (a) shall
include the following:
(1) A detailed analysis of the current benefits derived,
both directly and indirectly, from the Military Selective
Service System, including--
(A) the extent to which mandatory registration
benefits military recruiting;
(B) the extent to which a national registration
capability serves as a deterrent to potential enemies of
the United States; and
(C) the extent to which expanding registration to
include women would impact these benefits.
(2) An analysis of the functions currently performed by the
Selective Service System that would be assumed by the Department
of Defense in the absence of a national registration capability.
(3) An analysis of the systems, manpower, and facilities
that would be needed by the Department to physically mobilize
inductees in the absence of the Selective Service System.
(4) An analysis of the feasibility and utility of
eliminating the current focus on mass mobilization of primarily
combat troops in favor of a system that focuses on mobilization
of all military occupational specialties, and the extent to
which such a change would impact the need for both male and
female inductees.
(5) A detailed analysis of the Department's personnel needs
in the event of an emergency requiring mass mobilization,
including--
(A) a detailed timeline, along with the factors
considered in arriving at this timeline, of when the
Department would require--
(i) the first inductees to report for service;
(ii) the first 100,000 inductees to report for
service; and
(iii) the first medical personnel to report
for service; and
(B) an analysis of any additional critical skills
that would be needed in the event of a national
emergency, and a timeline for when the Department would
require the first inductees to report for service.
(6) A list of the assumptions used by the Department when
conducting its analysis in preparing the report.

(c) Comptroller General Review.--Not later than December 1, 2017,
the Comptroller General of the United States shall submit to the
Committees on Armed Services of the Senate and the House

[[Page 2132]]

of Representatives and to the Commission a review of the procedures used
by the Department of Defense in evaluating selective service
requirements.
SEC. 553. NATIONAL COMMISSION ON MILITARY, NATIONAL, AND PUBLIC
SERVICE.

(a) Establishment.--There is established in the executive branch an
independent commission to be known as the National Commission on
Military, National, and Public Service (in this subtitle referred to as
the ``Commission''). The Commission shall be considered an independent
establishment of the Federal Government as defined by section 104 of
title 5, United States Code, and a temporary organization under section
3161 of such title.
(b) Membership.--
(1) Number and appointment.--The Commission shall be
composed of 11 members appointed as follows:
(A) The President shall appoint three members.
(B) The Majority Leader of the Senate shall appoint
one member.
(C) The Minority Leader of the Senate shall appoint
one member.
(D) The Speaker of the House of Representatives
shall appoint one member.
(E) The Minority Leader of the House of
Representatives shall appoint one member.
(F) The Chairman of the Committee on Armed Services
of the Senate shall appoint one member.
(G) The ranking minority member of the Committee on
Armed Services of the Senate shall appoint one member.
(H) The Chairman of the Committee on Armed Services
of the House of Representatives shall appoint one
member.
(I) The ranking minority member of the Committee on
Armed Services of the House of Representatives shall
appoint one member.
(2) Deadline for appointment.--Members shall be appointed to
the Commission under paragraph (1) not later than 90 days after
the Commission establishment date.
(3) Effect of lack of appointment by appointment date.--If
one or more appointments under subparagraph (A) of paragraph (1)
is not made by the appointment date specified in paragraph (2),
the authority to make such appointment or appointments shall
expire, and the number of members of the Commission shall be
reduced by the number equal to the number of appointments so not
made. If an appointment under subparagraph (B), (C), (D), (E),
(F), (G), (H), or (I) of paragraph (1) is not made by the
appointment date specified in paragraph (2), the authority to
make an appointment under such subparagraph shall expire, and
the number of members of the Commission shall be reduced by the
number equal to the number otherwise appointable under such
subparagraph.

(c) Chair and Vice Chair.--The Commission shall elect a Chair and
Vice Chair from among its members.
(d) Terms.--Members shall be appointed for the life of the
Commission. A vacancy in the Commission shall not affect its powers, and
shall be filled in the same manner as the original appointment was made.

[[Page 2133]]

(e) Status as Federal Employees.--Notwithstanding the requirements
of section 2105 of title 5, United States Code, including the required
supervision under subsection (a)(3) of such section, the members of the
Commission shall be deemed to be Federal employees.
(f) Pay for Members of the Commission.--
(1) In general.--Each member, other than the Chair, of the
Commission shall be paid at a rate equal to the daily equivalent
of the annual rate of basic pay payable for level IV of the
Executive Schedule under section 5315 of title 5, United States
Code, for each day (including travel time) during which the
member is engaged in the actual performance of duties vested in
the Commission.
(2) Chair.--The Chair of the Commission shall be paid at a
rate equal to the daily equivalent of the annual rate of basic
pay payable for level III of the Executive Schedule under
section 5314, of title 5, United States Code, for each day
(including travel time) during which the member is engaged in
the actual performance of duties vested in the Commission.

(g) Use of Government Information.--The Commission may secure
directly from any department or agency of the Federal Government such
information as the Commission considers necessary to carry out its
duties. Upon such request of the chair of the Commission, the head of
such department or agency shall furnish such information to the
Commission.
(h) Postal Services.--The Commission may use the United States mails
in the same manner and under the same conditions as departments and
agencies of the United States.
(i) Authority To Accept Gifts.--The Commission may accept, use, and
dispose of gifts or donations of services, goods, and property from non-
Federal entities for the purposes of aiding and facilitating the work of
the Commission. The authority in this subsection does not extend to
gifts of money.
(j) Personal Services.--
(1) Authority to procure.--The Commission may--
(A) procure the services of experts or consultants
(or of organizations of experts or consultants) in
accordance with the provisions of section 3109 of title
5, United States Code; and
(B) pay in connection with such services travel
expenses of individuals, including transportation and
per diem in lieu of subsistence, while such individuals
are traveling from their homes or places of business to
duty stations.
(2) Limitation.--The total number of experts or consultants
procured pursuant to paragraph (1) may not exceed five experts
or consultants.
(3) Maximum daily pay rates.--The daily rate paid an expert
or consultant procured pursuant to paragraph (1) may not exceed
the daily rate paid a person occupying a position at level IV of
the Executive Schedule under section 5315 of title 5, United
States Code.

(k) Funding.--Of the amounts authorized to be appropriated by this
Act for fiscal year 2017 for the Department of Defense, up to
$15,000,000 shall be made available to the Commission to carry out its
duties under this subtitle. Funds made available

[[Page 2134]]

to the Commission under the preceding sentence shall remain available
until expended.
SEC. 554. COMMISSION HEARINGS AND MEETINGS.

(a) In General.--The Commission shall conduct hearings on the
recommendations it is taking under consideration. Any such hearing,
except a hearing in which classified information is to be considered,
shall be open to the public. Any hearing open to the public shall be
announced on a Federal website at least 14 days in advance. For all
hearings open to the public, the Commission shall release an agenda and
a listing of materials relevant to the topics to be discussed. The
Commission is authorized and encouraged to hold hearings and meetings in
various locations throughout the country to provide maximum opportunity
for public comment and participation in the Commission's execution of
its duties.
(b) Meetings.--
(1) Initial meeting.--The Commission shall hold its initial
meeting not later than 30 days after the date as of which all
members have been appointed.
(2) Subsequent meetings.--After its initial meeting, the
Commission shall meet upon the call of the chair or a majority
of its members.
(3) Public meetings.--Each meeting of the Commission shall
be held in public unless any member objects or classified
information is to be considered.

(c) Quorum.--Six members of the Commission shall constitute a
quorum, but a lesser number may hold hearings or meetings.
(d) Public Comments.--
(1) Solicitation.--The Commission shall seek written
comments from the general public and interested parties on
matters of the Commission's review under this subtitle. Comments
shall be requested through a solicitation in the Federal
Register and announcement on the Internet website of the
Commission.
(2) Period for submittal.--The period for the submittal of
comments pursuant to the solicitation under paragraph (1) shall
end not earlier than 30 days after the date of the solicitation
and shall end on or before the date on which recommendations are
transmitted to the Commission under section 555(d).
(3) Use by commission.--The Commission shall consider the
comments submitted under this subsection when developing its
recommendations.

(e) Space for Use of Commission.--Not later than 90 days after the
date of the enactment of this Act, the Administrator of General
Services, in consultation with the Secretary, shall identify and make
available suitable excess space within the Federal space inventory to
house the operations of the Commission. If the Administrator is not able
to make such suitable excess space available within such 90-day period,
the Commission may lease space to the extent the funds are available.
(f) Contracting Authority.--The Commission may acquire
administrative supplies and equipment for Commission use to the extent
funds are available.
SEC. 555. PRINCIPLES AND PROCEDURE FOR COMMISSION RECOMMENDATIONS.

(a) Context of Commission Review.--The Commission shall--

[[Page 2135]]

(1) conduct a review of the military selective service
process; and
(2) consider methods to increase participation in military,
national, and public service opportunities to address national
security and other public service needs of the Nation.

(b) Development of Commission Recommendations.--The Commission shall
develop recommendations on the matters subject to its review under
subsection (a) that are consistent with the principles established by
the President under subsection (c).
(c) Presidential Principles.--
(1) In general.--Not later than three months after the
Commission establishment date, the President shall establish and
transmit to the Commission and Congress principles for reform of
the military selective service process, including means by which
to best acquire for the Nation skills necessary to meet the
military, national, and public service requirements of the
Nation in connection with that process.
(2) Elements.--The principles required under this subsection
shall address the following:
(A) Whether, in light of the current and predicted
global security environment and the changing nature of
warfare, there continues to be a continuous or potential
need for a military selective service process designed
to produce large numbers of combat members of the Armed
Forces, and if so, whether such a system should include
mandatory registration by all citizens and residents,
regardless of sex.
(B) The need, and how best to meet the need, of the
Nation, the military, the Federal civilian sector, and
the private sector (including the non-profit sector) for
individuals possessing critical skills and abilities,
and how best to employ individuals possessing those
skills and abilities for military, national, or public
service.
(C) How to foster within the Nation, particularly
among United States youth, an increased sense of service
and civic responsibility in order to enhance the
acquisition by the Nation of critically needed skills
through education and training, and how best to acquire
those skills for military, national, or public service.
(D) How to increase a propensity among United States
youth for service in the military, or alternatively in
national or public service, including how to increase
the pool of qualified applicants for military service.
(E) The need in Government, including the military,
and in the civilian sector to increase interest,
education, and employment in certain critical fields,
including science, technology, engineering, and
mathematics (STEM), national security, cyber,
linguistics and foreign language, education, health
care, and the medical professions.
(F) How military, national, and public service may
be incentivized, including through educational benefits,
grants, federally-insured loans, Federal or State hiring
preferences, or other mechanisms that the President
considers appropriate.
(G) Any other matters the President considers
appropriate for purposes of this subtitle.

[[Page 2136]]

(d) Cabinet Recommendations.--Not later than seven months after the
Commission establishment date, the Secretary of Defense, the Attorney
General, the Secretary of Homeland Security, the Secretary of Labor, and
such other Government officials, and such experts, as the President
shall designate for purposes of this subsection shall jointly transmit
to the Commission and Congress recommendations for the reform of the
military selective service process and military, national, and public
service in connection with that process.
(e) Commission Report and Recommendations.--
(1) Report.--Not later than 30 months after the Commission
establishment date, the Commission shall transmit to the
President and Congress a report containing the findings and
conclusions of the Commission, together with the recommendations
of the Commission regarding the matters reviewed by the
Commission pursuant to this subtitle. The Commission shall
include in the report legislative language and recommendations
for administrative action to implement the recommendations of
the Commission. The findings and conclusions in the report shall
be based on the review and analysis by the Commission of the
recommendations made under subsection (d).
(2) Requirement for approval.--The recommendations of the
Commission must be approved by at least five members of the
Commission before the recommendations may be transmitted to the
President and Congress under paragraph (1).
(3) Public availability.--The Commission shall publish a
copy of the report required by paragraph (1) on an Internet
website available to the public on the same date on which it
transmits that report to the President and Congress under that
paragraph.

(f) Judicial Review Precluded.--Actions under this section of the
President, the officials specified or designated under subsection (d),
and the Commission shall not be subject to judicial review.
SEC. 556. EXECUTIVE DIRECTOR AND STAFF.

(a) Executive Director.--The Commission shall appoint and fix the
rate of basic pay for an Executive Director in accordance with section
3161 of title 5, United States Code.
(b) Staff.--Subject to subsections (c) and (d), the Executive
Director, with the approval of the Commission, may appoint and fix the
rate of basic pay for additional personnel as staff of the Commission in
accordance with section 3161 of title 5, United States Code.
(c) Limitations on Staff.--
(1) Number of detailees from executive departments.--Not
more than one-third of the personnel employed by or detailed to
the Commission may be on detail from the Department of Defense
and other executive branch departments.
(2) Prior duties within executive branch.--A person may not
be detailed from the Department of Defense or other executive
branch department to the Commission if, in the year before the
detail is to begin, that person participated personally and
substantially in any matter concerning the preparation

[[Page 2137]]

of recommendations for the military selective service process
and military and public service in connection with that process.

(d) Limitations on Performance Reviews.--No member of the uniformed
services, and no officer or employee of the Department of Defense or
other executive branch department (other than a member of the uniformed
services or officer or employee who is detailed to the Commission),
may--
(1) prepare any report concerning the effectiveness,
fitness, or efficiency of the performance of the staff of the
Commission or any person detailed to that staff;
(2) review the preparation of such a report (other than for
administrative accuracy); or
(3) approve or disapprove such a report.
SEC. 557. TERMINATION OF COMMISSION.

Except as otherwise provided in this subtitle, the Commission shall
terminate not later than 36 months after the Commission establishment
date.

Subtitle G--Member Education, Training, Resilience, and Transition

SEC. 561. MODIFICATION OF PROGRAM TO ASSIST MEMBERS OF THE ARMED
FORCES IN OBTAINING PROFESSIONAL
CREDENTIALS.

(a) Scope of Program.--Section 2015(a)(1) of title 10, United States
Code, is amended by striking ``incident to the performance of their
military duties''.
(b) Quality Assurance of Certification Programs and Standards.--
Section 2015(c) of title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``is accredited by an
accreditation body that'' and all that follows and inserting
``meets one of the requirements specified in paragraph (2).'';
and
(2) by striking paragraph (2) and inserting the following
new paragraph (2):
``(2) The requirements for a credentialing program specified
in this paragraph are that the credentialing program--
``(A) is accredited by a nationally-recognized,
third-party personnel certification program accreditor;
``(B)(i) is sought or accepted by employers within
the industry or sector involved as a recognized,
preferred, or required credential for recruitment,
screening, hiring, retention, or advancement purposes;
and
``(ii) where appropriate, is endorsed by a
nationally-recognized trade association or organization
representing a significant part of the industry or
sector;
``(C) grants licenses that are recognized by the
Federal Government or a State government; or
``(D) meets credential standards of a Federal
agency.''.

[[Page 2138]]

SEC. 562. INCLUSION OF ALCOHOL, PRESCRIPTION DRUG, OPIOID, AND
OTHER SUBSTANCE ABUSE COUNSELING AS PART
OF REQUIRED PRESEPARATION COUNSELING.

Section 1142(b)(11) of title 10, United States Code, is amended by
inserting before the period the following: ``and information concerning
the availability of treatment options and resources to address substance
abuse, including alcohol, prescription drug, and opioid abuse''.
SEC. 563. INCLUSION OF INFORMATION IN TRANSITION ASSISTANCE
PROGRAM REGARDING EFFECT OF RECEIPT OF
BOTH VETERAN DISABILITY COMPENSATION AND
VOLUNTARY SEPARATION PAY.

Section 1144(b) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(10) Provide information regarding the required deduction,
pursuant to subsection (h) of section 1175a of this title, from
disability compensation paid by the Secretary of Veterans
Affairs of amounts equal to any voluntary separation pay
received by the member under such section.''.
SEC. 564. TRAINING UNDER TRANSITION ASSISTANCE PROGRAM ON CAREER
AND EMPLOYMENT OPPORTUNITIES ASSOCIATED
WITH TRANSPORTATION SECURITY CARDS.

(a) In General.--Section 1144(b) of title 10, United States Code, as
amended by section 563, is further amended by adding at the end the
following new paragraph:
``(11) Acting through the Secretary of the department in
which the Coast Guard is operating, provide information on
career and employment opportunities available to members with
transportation security cards issued under section 70105 of
title 46.''.

(b) <>  Deadline for Implementation.--The
program carried out under section 1144 of title 10, United States Code,
shall satisfy the requirements of subsection (b)(11) of such section (as
added by subsection (a) of this section) by not later than 180 days
after the date of the enactment of this Act.
SEC. 565. EXTENSION OF SUICIDE PREVENTION AND RESILIENCE PROGRAM.

Section 10219(g) of title 10, United States Code, is amended by
striking ``October 1, 2017'' and inserting ``October 1, 2018''.
SEC. 566. CONGRESSIONAL NOTIFICATION IN ADVANCE OF APPOINTMENTS TO
SERVICE ACADEMIES.

(a) United States Military Academy.--Section 4342(a) of title 10,
United States Code, is amended in the matter after paragraph (10) by
adding at the end the following new sentence: ``When a nominee of a
Senator, Representative, or Delegate is selected for appointment as a
cadet, the Senator, Representative, or Delegate shall be notified at
least 48 hours before the official notification or announcement of the
appointment is made.''.
(b) United States Naval Academy.--Section 6954(a) of title 10,
United States Code, is amended in the matter after paragraph (10) by
adding at the end the following new sentence: ``When a nominee of a
Senator, Representative, or Delegate is selected for appointment as a
midshipman, the Senator, Representative, or

[[Page 2139]]

Delegate shall be notified at least 48 hours before the official
notification or announcement of the appointment is made.''.
(c) United States Air Force Academy.--Section 9342(a) of title 10,
United States Code, is amended in the matter after paragraph (10) by
adding at the end the following new sentence: ``When a nominee of a
Senator, Representative, or Delegate is selected for appointment as a
cadet, the Senator, Representative, or Delegate shall be notified at
least 48 hours before the official notification or announcement of the
appointment is made.''.
(d) United States Merchant Marine Academy.--Section 51302 of title
46, United States Code, is amended by adding at the end the following:
``(e) Congressional Notification in Advance of Appointments.--When a
nominee of a Senator, Representative, or Delegate is selected for
appointment as a cadet, the Senator, Representative, or Delegate shall
be notified at least 48 hours before the official notification or
announcement of the appointment is made.''.
(e) <>  Application of Amendments.--The
amendments made by this section shall apply with respect to the
appointment of cadets and midshipmen to the United States Military
Academy, the United States Naval Academy, the United States Air Force
Academy, and the United States Merchant Marine Academy for classes
entering these service academies after January 1, 2018.
SEC. 567. REPORT AND GUIDANCE ON JOB TRAINING, EMPLOYMENT SKILLS
TRAINING, APPRENTICESHIPS, AND INTERNSHIPS
AND SKILLBRIDGE INITIATIVES FOR MEMBERS OF
THE ARMED FORCES WHO ARE BEING SEPARATED.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Under Secretary of Defense for Personnel and
Readiness shall submit to the Committees on Armed Services of the Senate
and the House of Representatives, and make available to the public, a
report evaluating the success of the Job Training, Employment Skills
Training, Apprenticeships, and Internships (known as JTEST-AI) and
SkillBridge initiatives, under which civilian businesses and companies
make available to members of the Armed Forces who are being separated
from the Armed Forces training or internship opportunities that offer a
high probability of employment for the members after their separation.
(b) Elements.--In preparing the report required by subsection (a),
the Under Secretary of Defense for Personnel and Readiness shall use the
effectiveness metrics described in Enclosure 5 of Department of Defense
Instruction No. 1322.29. The report shall include the following:
(1) An assessment of the successes of the Job Training,
Employment Skills Training, Apprenticeships, and Internships and
SkillBridge initiatives.
(2) Recommendations by the Under Secretary on ways in which
the administration of the initiatives could be improved.
(3) Recommendations by civilian companies participating in
the initiatives on ways in which the administration of the
initiatives could be improved.
SEC. 568. MILITARY-TO-MARINER TRANSITION.

(a) Report.--Not later than 180 days after the date of the enactment
of this Act, the Secretary of Defense and the Secretary of the
department in which the Coast Guard is operating shall

[[Page 2140]]

jointly report to the Committee on Armed Services and the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Armed Services and the Committee on Commerce, Science,
and Transportation of the Senate on steps the Departments of Defense and
Homeland Security have taken or intend to take--
(1) to maximize the extent to which United States Armed
Forces service, training, and qualifications are creditable
toward meeting the laws and regulations governing United States
merchant mariner license, certification, and document laws and
the International Convention on Standards of Training,
Certification and Watchkeeping for Seafarers, 1978, including
steps to enhance interdepartmental coordination; and
(2) to promote better awareness among Armed Forces personnel
who serve in vessel operating positions of the requirements for
postservice use of Armed Forces training, education, and
practical experience in satisfaction of requirements for
merchant mariner credentials under section 11.213 of title 46,
Code of Federal Regulations, and the need to document such
service in a manner suitable for post-service use.

(b) List of Training Programs.--The report under subsection (a)
shall include a list of Army, Navy, and Coast Guard training programs
open to Army, Navy, and Coast Guard vessel operators, respectively, that
shows--
(1) which programs have been approved for credit toward
merchant mariner credentials;
(2) which programs are under review for such approval;
(3) which programs are not relevant to the training needed
for merchant mariner credentials; and
(4) which programs could become eligible for credit toward
merchant mariner credentials with minor changes.

Subtitle H--Defense Dependents' Education and Military Family Readiness
Matters

SEC. 571. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL
AGENCIES THAT BENEFIT DEPENDENTS OF
MEMBERS OF THE ARMED FORCES AND DEPARTMENT
OF DEFENSE CIVILIAN EMPLOYEES.

(a) Assistance to Schools With Significant Numbers of Military
Dependent Students.--Of the amount authorized to be appropriated for
fiscal year 2017 by section 301 and available for operation and
maintenance for Defense-wide activities as specified in the funding
table in division D, $30,000,000 shall be available only for the purpose
of providing assistance to local educational agencies under subsection
(a) of section 572 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109-163; 20 U.S.C. 7703b).
(b) Impact Aid for Children With Severe Disabilities.--Of the amount
authorized to be appropriated for fiscal year 2017 by section 301 and
available for operation and maintenance for Defense-wide activities as
specified in the funding table in section 4301, $5,000,000 shall be
available for payments under section 363 of the Floyd D. Spence National
Defense Authorization Act

[[Page 2141]]

for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114
Stat. 1654A-77; 20 U.S.C. 7703a).
(c) Local Educational Agency Defined.--In this section, the term
``local educational agency'' has the meaning given that term in section
8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7713(9)).
SEC. 572. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO THE
TRANSITION AND SUPPORT OF MILITARY
DEPENDENT STUDENTS TO LOCAL EDUCATIONAL
AGENCIES.

(a) Extension.--Section 574(c)(3) of the John Warner National
Defense Authorization Act for Fiscal Year 2007 (20 U.S.C. 7703b note) is
amended by striking ``September 30, 2016'' and inserting ``September 30,
2017''.
(b) <>  Information To Be Included With
Future Requests for Extension.--The budget justification materials that
accompany any budget of the President for a fiscal year after fiscal
year 2017 (as submitted to Congress pursuant to section 1105 of title
31, United States Code) that includes a request for the extension of
section 574(c) of the John Warner National Defense Authorization Act for
Fiscal Year 2007 shall include the following:
(1) A full accounting of the expenditure of funds pursuant
to such section 574(c) during the last fiscal year ending before
the date of the submittal of the budget.
(2) An assessment of the impact of the expenditure of such
funds on the quality of opportunities for elementary and
secondary education made available for military dependent
students.
SEC. 573. <>  ANNUAL NOTICE TO MEMBERS OF THE
ARMED FORCES REGARDING CHILD CUSTODY
PROTECTIONS GUARANTEED BY THE
SERVICEMEMBERS CIVIL RELIEF ACT.

The Secretaries of each of the military departments shall ensure
that each member of the Armed Forces with dependents receives annually,
and prior to each deployment, notice of the child custody protections
afforded to members of the Armed Forces under the Servicemembers Civil
Relief Act (50 U.S.C. 3901 et seq.).
SEC. 574. REQUIREMENT FOR ANNUAL FAMILY ADVOCACY PROGRAM REPORT
REGARDING CHILD ABUSE AND DOMESTIC
VIOLENCE.

(a) Annual Report on Child Abuse and Domestic Violence.--Not later
than April 30, 2017, and annually thereafter through April 30, 2021, the
Secretary of Defense shall submit to the Committees on Armed Services of
the House of Representatives and the Senate a report on the child abuse
and domestic abuse incident data from the Department of Defense Family
Advocacy Program central registry of child abuse and domestic abuse
incidents for the preceding calendar year.
(b) Contents.--The report shall contain each of the following:
(1) The number of incidents reported during the year covered
by the report involving--
(A) spouse physical or sexual abuse;
(B) intimate partner physical or sexual abuse;
(C) child physical or sexual abuse; and
(D) child or domestic abuse resulting in a fatality.
(2) An analysis of the number of such incidents that met the
criteria for substantiation.

[[Page 2142]]

(3) An analysis of--
(A) the types of abuse reported;
(B) for cases involving children as the reported
victims of the abuse, the ages of the abused children;
and
(C) other relevant characteristics of the reported
victims.
(4) An analysis of the military status, sex, and pay grade
of the alleged perpetrator of the child or domestic abuse.
(5) An analysis of the effectiveness of the Family Advocacy
Program.

(c) Coordination of Release Date Between Annual Reports Regarding
Sexual Assaults and Family Advocacy Program Report.--The Secretary of
Defense shall ensure that the sexual assault reports required to be
submitted under section 1631(d) of the Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C.
1561 note) for a year are delivered to the Committees on Armed Services
of the House of Representatives and the Senate simultaneously with the
report for that year required under this section.
SEC. 575. <>  REPORTING ON ALLEGATIONS OF
CHILD ABUSE IN MILITARY FAMILIES AND
HOMES.

(a) Reports to Family Advocacy Program Offices.--
(1) In general.--The following information shall be reported
immediately to the Family Advocacy Program office at the
military installation to which the member of the Armed Forces
concerned is assigned:
(A) Credible information (which may include a
reasonable belief), obtained by any individual within
the chain of command of the member, that a child in the
family or home of the member has suffered an incident of
child abuse.
(B) Information, learned by a member of the Armed
Forces engaged in a profession or activity described in
section 226(b) of the Victims of Child Abuse Act of 1990
(42 U.S.C. 13031(b)) for members of the Armed Forces and
their dependents, that gives reason to suspect that a
child in the family or home of the member has suffered
an incident of child abuse.
(2) Regulations.--The Secretary of Defense and the Secretary
of Homeland Security (with respect to the Coast Guard when it is
not operating as a service in the Navy) shall jointly prescribe
regulations to carry out this subsection.
(3) Child abuse defined.--In this subsection, the term
``child abuse'' has the meaning given that term in section
226(c) of the Victims of Child Abuse Act of 1990 (42 U.S.C.
13031(c)).

(b) Reports to State Child Welfare Services.--Section 226 of the
Victims of Child Abuse Act of 1990 (42 U.S.C. 13031) is amended--
(1) in subsection (a), by inserting `` and to the agency or
agencies provided for in subsection (e), if applicable'' before
the period;
(2) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(3) by inserting after subsection (d) the following new
subsection (e):

[[Page 2143]]

``(e) Reporters and Recipient of Report Involving Children and Homes
of Members of the Armed Forces.--
``(1) Recipients of reports.--In the case of an incident
described in subsection (a) involving a child in the family or
home of member of the Armed Forces (regardless of whether the
incident occurred on or off a military installation), the report
required by subsection (a) shall be made to the appropriate
child welfare services agency or agencies of the State in which
the child resides. The Attorney General, the Secretary of
Defense, and the Secretary of Homeland Security (with respect to
the Coast Guard when it is not operating as a service in the
Navy) shall jointly, in consultation with the chief executive
officers of the States, designate the child welfare service
agencies of the States that are appropriate recipients of
reports pursuant to this subsection. Any report on an incident
pursuant to this subsection is in addition to any other report
on the incident pursuant to this section.
``(2) Makers of reports.--For purposes of the making of
reports under this section pursuant to this subsection, the
persons engaged in professions and activities described in
subsection (b) shall include members of the Armed Forces who are
engaged in such professions and activities for members of the
Armed Forces and their dependents.''.
SEC. 576. REPEAL OF ADVISORY COUNCIL ON DEPENDENTS' EDUCATION.

Section 1411 of the Defense Dependents' Education Act of 1978 (20
U.S.C. 929) is repealed.
SEC. 577. <>  SUPPORT FOR PROGRAMS
PROVIDING CAMP EXPERIENCE FOR CHILDREN OF
MILITARY FAMILIES.

(a) Authority to Provide Support.--The Secretary of Defense may
provide financial or non-monetary support to qualified nonprofit
organizations in order to assist such organizations in carrying out
programs to support the attendance at a camp, or camp-like setting, of
children of military families who have experienced the death of a family
member or other loved one or who have another family member living with
a substance use disorder or post-traumatic stress disorder.
(b) Application for Support.--
(1) In general.--Each organization seeking support pursuant
to subsection (a) shall submit to the Secretary of Defense an
application therefor containing such information as the
Secretary shall specify for purposes of this section.
(2) Contents.--Each application submitted under paragraph
(1) shall include the following:
(A) A description of the program for which support
is being sought, including the location of the setting
or settings under the program, the duration of such
setting or settings, any local partners participating in
or contributing to the program, and the ratio of
counselors, trained volunteers, or both to children at
such setting or settings.
(B) An estimate of the number of children of
military families to be supported using the support
sought.
(C) A description of the type of activities that
will be conducted using the support sought, including
the manner in which activities are particularly
supportive to children of military families described in
subsection (a).

[[Page 2144]]

(D) A description of the outreach conducted or to be
conducted by the organization to military families
regarding the program.

(c) Use of Support.--Support provided by the Secretary of Defense to
an organization pursuant to subsection (a) shall be used by the
organization to support attendance at a camp, or camp-like setting, of
children of military families described in subsection (a).
SEC. 578. COMPTROLLER GENERAL OF THE UNITED STATES ASSESSMENT AND
REPORT ON EXCEPTIONAL FAMILY MEMBER
PROGRAMS.

(a) Assessment and Report Required.--
(1) Assessment.--The Comptroller General of the United
States shall conduct an assessment on the effectiveness of each
Exceptional Family Member Program of the Armed Forces.
(2) Report.--Not later than December 31, 2017, the
Comptroller General shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a report
containing the results of the assessment conducted under this
subsection.

(b) Elements.--The assessment and report under subsection (a) shall
address the following:
(1) The differences between each Exceptional Family Member
Program of the Armed Forces.
(2) The manner in which Exceptional Family Member Programs
are implemented on joint bases and installations.
(3) The extent to which military family members are screened
for potential coverage under an Exceptional Family Member
Program and the manner of such screening.
(4) The degree to which conditions of military family
members who qualify for coverage under an Exceptional Family
Member Program are taken into account in making assignments of
military personnel.
(5) The types of services provided to address the needs of
military family members who qualify for coverage under an
Exceptional Family Member Program.
(6) The extent to which the Department of Defense has
implemented specific directives for providing family support and
enhanced case management services, such as special needs
navigators, to military families with special needs children.
(7) The extent to which the Department has conducted
periodic reviews of best practices in the United States for the
provision of medical and educational services to military family
members with special needs.
(8) The necessity in the Department for an advisory panel on
community support for military families members with special
needs.
(9) The development and implementation of the uniform policy
for the Department regarding families with special needs
required by section 1781c(e) of title 10, United States Code.
(10) The implementation by each Armed Force of the
recommendations in the Government Accountability Report entitled
``Military Dependent Students, Better Oversight Needed to
Improve Services for Children with Special Needs'' (GAO-12-680).

[[Page 2145]]

SEC. 579. <>  IMPACT AID AMENDMENTS.

(a)  Military ``Build to Lease'' Program Housing.--Notwithstanding
section 5(d) of the Every Student Succeeds Act (Public Law 114-95; 129
Stat. 1806), the amendment made by section 7004(1) of such Act (Public
Law 114-95; 129 Stat. 2077)--
(1) for fiscal year 2016--
(A) shall be applied as if amending section
8003(a)(5)(A) of the Elementary and Secondary Education
Act of 1965, as in effect on the day before the date of
enactment of the Every Student Succeeds Act (Public Law
114-95; 129 Stat. 1802); and
(B) shall be applicable with respect to
appropriations for use under title VIII of the
Elementary and Secondary Education Act of 1965 (Public
Law 114-95; 129 Stat. 1802); and
(2) for fiscal year 2017 and each succeeding fiscal year,
shall be in effect with respect to appropriations for use under
title VII of the Elementary and Secondary Education Act of 1965,
as amended by the Every Student Succeeds Act (Public Law 114-95;
129 Stat. 1802).

(b) Eligibility for Heavily Impacted Local Educational Agencies.--
(1) Amendment.--Subclause (I) of section 7003(b)(2)(B)(i) of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2)(B)(i)(I)) is amended to read as follows:
``(I) is a local educational
agency--
``(aa) whose boundaries are
the same as a Federal military
installation; or
``(bb)(AA) whose boundaries
are the same as an island
property designated by the
Secretary of the Interior to be
property that is held in trust
by the Federal Government; and
``(BB) that has no taxing
authority;''.
(2) <>  Effective date.--The
amendment made by paragraph (1) shall take effect with respect
to appropriations for use under title VII of the Elementary and
Secondary Education Act of 1965, as amended by the Every Student
Succeeds Act (Public Law 114-95; 129 Stat. 1802), beginning with
fiscal year 2017 and as if enacted as part of title VII of the
Every Student Succeeds Act.

(c) <>  Special Rule Regarding the Per-
Pupil Expenditure Requirement.--
(1) References.--Except as otherwise expressly provided, any
reference in this subsection to a section or other provision of
title VII of the Elementary and Secondary Education Act of 1965
shall be considered to be a reference to the section or other
provision of such title VII as amended by the Every Student
Succeeds Act (Public Law 114-95; 129 Stat. 1802).
(2) In general.--Notwithstanding section 5(d) of the Every
Student Succeeds Act (Public Law 114-95; 129 Stat. 1806) or
section 7003(b)(2) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7703(b)(2)), with respect to any application
submitted under section 7005 of such Act (20 U.S.C. 7705) for
eligibility consideration under subclause (II) or (V) of section
7003(b)(2)(B)(i) of such Act for fiscal year 2017, 2018, or
2019, the Secretary of Education shall determine that a local
educational agency meets the per-pupil expenditure

[[Page 2146]]

requirement for purposes of such subclause (II) or (V), as
applicable, only if--
(A) in the case of a local educational agency that
received a basic support payment for fiscal year 2001
under section 8003(b)(2)(B) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2)(B)) (as such section was in effect for such
fiscal year), the agency, for the year for which the
application is submitted, has a per-pupil expenditure
that is less than the average per-pupil expenditure of
the State in which the agency is located or the average
per-pupil expenditure of all States (whichever average
per-pupil expenditure is greater), except that a local
educational agency with a total student enrollment of
less than 350 students shall be deemed to have satisfied
such per-pupil expenditure requirement; or
(B) in the case of a local educational agency that
did not receive a basic support payment for fiscal year
2015 under such section 8003(b)(2)(B), as so in effect,
the agency, for the year for which the application is
submitted--
(i) has a total student enrollment of 350 or
more students and a per-pupil expenditure that is
less than the average per-pupil expenditure of the
State in which the agency is located; or
(ii) has a total student enrollment of less
than 350 students and a per-pupil expenditure that
is less than the average per-pupil expenditure of
a comparable local educational agency or 3
comparable local educational agencies (whichever
average per-pupil expenditure is greater), in the
State in which the agency is located.

(d) Payments for Eligible Federally Connected Children.--
(1) Amendments.--Section 7003(b)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)), as
amended by subsection (b) and sections 7001 and 7004 of the
Every Student Succeeds Act (Public Law 114-95; 129 Stat. 2074,
2077), is further amended--
(A) in subclause (IV) of subparagraph (B)(i)--
(i) in the matter preceding item (aa), by
inserting ``received a payment for fiscal year
2015 under section 8003(b)(2)(E) (as such section
was in effect for such fiscal year) and'' before
``has'';
(ii) in item (aa), by striking ``50'' and
inserting ``35''; and
(iii) by striking item (bb) and inserting the
following:
``(bb)(AA) not less than
3,500 of such children are
children described in
subparagraphs (A) and (B) of
subsection (a)(1); or
``(BB) not less than 7,000
of such children are children
described in subparagraph (D) of
subsection (a)(1);''; and
(B) in subparagraph (D)--
(i) in clause (i)--
(I) in subclause (I), by striking
``clause (ii)'' and inserting ``clauses
(ii), (iii), and (iv)''; and
(II) in subclause (II)--

[[Page 2147]]

(aa) by inserting ``received
a payment for fiscal year 2015
under section 8003(b)(2)(E) (as
such section was in effect for
such fiscal year) and'' after
``agency that'';
(bb) by striking ``50
percent'' and inserting ``35
percent'';
(cc) by striking
``subsection (a)(1) and not less
than 5,000'' and inserting the
following: ``subsection (a)(1)
and--
``(aa) not less than
3,500''; and
(dd) by striking
``subsection (a)(1).'' and
inserting the following:
``subsection (a)(1); or
``(bb) not less than 7,000
of such children are children
described in subparagraph (D) of
subsection (a)(1).'';
(ii) in clause (ii), by striking ``shall be
1.35.'' and inserting the following: ``shall be--
``(I) for fiscal year 2016, 1.35;
``(II) for each of fiscal years 2017
and 2018, 1.38;
``(III) for fiscal year 2019, 1.40;
``(IV) for fiscal year 2020, 1.42;
and
``(V) for fiscal year 2021 and each
fiscal year thereafter, 1.45.''; and
(iii) by adding at the end the following:
``(iii) Factor for children who live off
base.--For purposes of calculating the maximum
amount described in clause (i), the factor used in
determining the weighted student units under
subsection (a)(2) with respect to children
described in subsection (a)(1)(D) shall be--
``(I) for fiscal year 2016, .20;
``(II) for each of fiscal years 2017
and 2018, .22;
``(III) for each of fiscal years
2019 and 2020, .25; and
``(IV) for fiscal year 2021 and each
fiscal year thereafter--
``(aa) .30 with respect to
each of the first 7,000
children; and
``(bb) .25 with respect to
the number of children that
exceeds 7,000.
``(iv) Special rule.--Notwithstanding clauses
(ii) and (iii), for fiscal year 2020 or any
succeeding fiscal year, if the number of students
who are children described in subparagraphs (A)
and (B) of subsection (a)(1) for a local
educational agency subject to this subparagraph
exceeds 7,000 for such year or the number of
students who are children described in subsection
(a)(1)(D) for such local educational agency
exceeds 12,750 for such year, then--
``(I) the factor used, for the
fiscal year for which the determination
is being made, to determine the weighted
student units under subsection (a)(2)
with respect to children described in
subparagraphs (A) and (B) of subsection
(a)(1) shall be 1.40; and

[[Page 2148]]

``(II) the factor used, for such
fiscal year, to determine the weighted
student units under subsection (a)(2)
with respect to children described in
subsection (a)(1)(D) shall be .20.''.
(2) <>  Effective date.--The
amendments made by paragraph (1) shall take effect with respect
to appropriations for use under title VII of the Elementary and
Secondary Education Act of 1965 beginning with fiscal year 2017
and as if enacted as part of title VII of the Every Student
Succeeds Act (Public Law 114-95; 129 Stat. 2074).
(3) <>  Special rules.--
(A) Applicability for fiscal year 2016.--
Notwithstanding any other provision of law, in making
basic support payments under section 8003(b)(2) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7703(b)(2)) for fiscal year 2016, the Secretary
of Education shall carry out subparagraphs (B)(i) and
(E) of such section as if the amendments made to
subparagraphs (B)(i)(IV) and (D) of section 7003(b)(2)
of such Act (as amended and redesignated by this
subsection and the Every Student Succeeds Act (Public
Law 114-95; 129 Stat. 1802)) had also been made to the
corresponding provisions of section 8003(b)(2) of the
Elementary and Secondary Education Act of 1965, as in
effect on the day before the date of enactment of the
Every Student Succeeds Act.
(B) Loss of eligibility.--For fiscal year 2016 or
any succeeding fiscal year, if a local educational
agency is eligible for a basic support payment under
subclause (IV) of section 7003(b)(2)(B)(i) of the
Elementary and Secondary Education Act of 1965 (as
amended by this section and the Every Student Succeeds
Act (Public Law 114-95; 129 Stat. 1802)) or through a
corresponding provision under subparagraph (A), such
local educational agency shall be ineligible to apply
for a payment for such fiscal year under any other
subclause of such section (or, for fiscal year 2016, any
other item of section 8003(b)(2)(B)(i)(II) of the
Elementary and Secondary Education Act of 1965).
(C) Payment amounts.--If, before the date of
enactment of this Act, a local educational agency
receives 1 or more payments under section 8003(b)(2)(E)
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7703(b)(2)(E)) for fiscal year 2016, the sum
of which is greater than the amount the Secretary of
Education determines the local educational agency is
entitled to receive under such section in accordance
with subparagraph (A)--
(i) the Secretary shall allow the local
educational agency to retain the larger amount;
and
(ii) such local educational agency shall not
be eligible to receive any additional payment
under such section for fiscal year 2016.

[[Page 2149]]

Subtitle I--Decorations and Awards

SEC. 581. POSTHUMOUS ADVANCEMENT OF COLONEL GEORGE E. ``BUD'' DAY,
UNITED STATES AIR FORCE, ON THE RETIRED
LIST .

(a) Advancement.--Colonel George E. ``Bud'' Day, United States Air
Force (retired), is entitled to hold the rank of brigadier general while
on the retired list of the Air Force.
(b) Additional Benefits Not To Accrue.--The advancement of George E.
``Bud'' Day on the retired list of the Air Force under subsection (a)
shall not affect the retired pay or other benefits from the United
States to which George E. ``Bud'' Day would have been entitled based
upon his military service or affect any benefits to which any other
person may become entitled based on his military service.
SEC. 582. AUTHORIZATION FOR AWARD OF MEDALS FOR ACTS OF VALOR
DURING CERTAIN CONTINGENCY OPERATIONS.

(a) Authorization.--Notwithstanding the time limitations specified
in sections 3744, 6248, and 8744 of title 10, United States Code, or any
other time limitation with respect to the awarding of certain medals to
persons who served in the Armed Forces, the President may award a medal
specified in subsection (c) to a member or former member of the Armed
Forces identified as warranting award of that medal pursuant to the
review of valor award nominations for Operation Enduring Freedom,
Operation Iraqi Freedom, Operation New Dawn, Operation Freedom's
Sentinel, and Operation Inherent Resolve that was directed by the
Secretary of Defense on January 7, 2016.
(b) Award of Medal of Honor.--If, pursuant to the review referred to
in subsection (a), the President decides to award to a member or former
member of the Armed Forces the Medal of Honor, the medal may only be
awarded after the Secretary of Defense submits to the Committees on
Armed Services of the Senate and the House of Representatives a letter
identifying the intended recipient of the Medal of Honor and the
rationale for awarding the Medal of Honor to such intended recipient.
(c) Medals.--The medals covered by subsection (a) are any of the
following:
(1) The Medal of Honor under section 3741, 6241, or 8741 of
title 10, United States Code.
(2) The Distinguished-Service Cross under section 3742 of
such title.
(3) The Navy Cross under section 6242 of such title.
(4) The Air Force Cross under section 8742 of such title.
(5) The Silver Star under section 3746, 6244, or 8746 of
such title.

(d) Termination.--No medal may be awarded under the authority of
this section after December 31, 2019.
SEC. 583. AUTHORIZATION FOR AWARD OF THE MEDAL OF HONOR TO GARY M.
ROSE AND JAMES C. MCCLOUGHAN FOR ACTS OF
VALOR DURING THE VIETNAM WAR.

(a) Gary M. Rose.--
(1) Authorization.--Notwithstanding the time limitations
specified in section 3744 of title 10, United States Code, or

[[Page 2150]]

any other time limitation with respect to the awarding of
certain medals to persons who served in the Armed Forces, the
President is authorized to award the Medal of Honor under
section 3741 of such title to Gary M. Rose for the acts of valor
described in paragraph (2).
(2) Acts of valor described.--The acts of valor referred to
in paragraph (1) are the actions of Gary M. Rose in Laos from
September 11 through 14, 1970, during the Vietnam War while a
member of the United States Army, Military Assistance Command
Vietnam-Studies and Observation Group (MACVSOG).

(b) James C. McCloughan.--
(1) Authorization.--Notwithstanding the time limitations
specified in section 3744 of title 10, United States Code, or
any other time limitation with respect to the awarding of
certain medals to persons who served in the Armed Forces, the
President is authorized to award the Medal of Honor under
section 3741 of such title to James C. McCloughan for the acts
of valor described in paragraph (2).
(2) Acts of valor described.--The acts of valor referred to
in paragraph (1) are the actions of James C. McCloughan during
combat operations between May 13, 1969, and May 15, 1969, while
serving as a Combat Medic with Company C, 3d Battalion, 21st
Infantry, 196th Light Infantry Brigade, American Division,
Republic of Vietnam, for which he was previously awarded the
Bronze Star Medal with ``V'' Device.
SEC. 584. AUTHORIZATION FOR AWARD OF DISTINGUISHED-SERVICE CROSS
TO FIRST LIEUTENANT MELVIN M. SPRUIELL FOR
ACTS OF VALOR DURING WORLD WAR II.

(a) Waiver of Time Limitations.--Notwithstanding the time
limitations specified in section 3744 of title 10, United States Code,
or any other time limitation with respect to the awarding of certain
medals to persons who served in the Armed Forces, the Secretary of the
Army may award the Distinguished-Service Cross under section 3742 of
such title to First Lieutenant Melvin M. Spruiell of the Army for the
acts of valor during World War II described in subsection (b).
(b) Acts of Valor Described.--The acts of valor referred to in
subsection (a) are the actions of First Lieutenant Melvin M. Spruiell on
June 10 and 11, 1944, as a member of the Army serving in France with the
377th Parachute Field Artillery, 101st Airborne Division.
SEC. 585. AUTHORIZATION FOR AWARD OF THE DISTINGUISHED SERVICE
CROSS TO CHAPLAIN (FIRST LIEUTENANT)
JOSEPH VERBIS LAFLEUR FOR ACTS OF VALOR
DURING WORLD WAR II.

(a) Authorization.--Notwithstanding the time limitations specified
in section 3744 of title 10, United States Code, or any other time
limitation with respect to the awarding of certain medals to persons who
served in the Armed Forces, the Secretary of the Army may award the
Distinguished Service Cross under section 3742 of that title to Chaplain
(First Lieutenant) Joseph Verbis LaFleur for the acts of valor referred
to in subsection (b).
(b) Acts of Valor Described.--The acts of valor referred to in
subsection (a) are the actions of Chaplain (First Lieutenant)

[[Page 2151]]

Joseph Verbis LaFleur while interned as a prisoner-of- war by Japan from
December 30, 1941, to September 7, 1944.
SEC. 586. <>  REVIEW REGARDING AWARD OF
MEDAL OF HONOR TO CERTAIN ASIAN AMERICAN
AND NATIVE AMERICAN PACIFIC ISLANDER WAR
VETERANS.

(a) Review Required.--The Secretary of each military department
shall review the service records of each Asian American and Native
American Pacific Islander war veteran described in subsection (b) to
determine whether that veteran should be awarded the Medal of Honor.
(b) Covered Veterans.--The Asian American and Native American
Pacific Islander war veterans whose service records are to be reviewed
under subsection (a) are any former members of the Armed Forces whose
service records identify them as an Asian American or Native American
Pacific Islander war veteran who was awarded the Distinguished-Service
Cross, the Navy Cross, or the Air Force Cross during the Korean War or
the Vietnam War.
(c) Consultations.--In carrying out the review under subsection (a),
the Secretary of each military department shall consult with such
veterans service organizations as the Secretary considers appropriate.
(d) Recommendations Based on Review.--If the Secretary concerned
determines, based upon the review under subsection (a) of the service
records of any Asian American or Native American Pacific Islander war
veteran, that the award of the Medal of Honor to that veteran is
warranted, the Secretary shall submit to the President a recommendation
that the President award the Medal of Honor to that veteran.
(e) Authority to Award Medal of Honor.--A Medal of Honor may be
awarded to an Asian American or Native American Pacific Islander war
veteran in accordance with a recommendation of the Secretary concerned
under subsection (d).
(f) Congressional Notification.--No Medal of Honor may be awarded
pursuant to subsection (e) until the Secretary of Defense submits to the
Committees on Armed Services of the Senate and the House of
Representatives notice of the recommendations under subsection (d),
including the name of each Asian American or Native American Pacific
Islander war veteran recommended to be awarded a Medal of Honor and the
rationale for such recommendation.
(g) Waiver of Time Limitations.--An award of the Medal of Honor may
be made under subsection (e) without regard to--
(1) section 3744, 6248, or 8744 of title 10, United States
Code, as applicable; and
(2) any regulation or other administrative restriction on--
(A) the time for awarding the Medal of Honor; or
(B) the awarding of the Medal of Honor for service
for which a Distinguished-Service Cross, Navy Cross, or
Air Force Cross has been awarded.

(h) Definition.--In this section, the term ``Native American Pacific
Islander'' means a Native Hawaiian or Native American Pacific Islander,
as those terms are defined in section 815 of the Native American
Programs Act of 1974 (42 U.S.C. 2992c).

[[Page 2152]]

Subtitle J--Miscellaneous Reports and Other Matters

SEC. 591. REPEAL OF REQUIREMENT FOR A CHAPLAIN AT THE UNITED
STATES AIR FORCE ACADEMY APPOINTED BY THE
PRESIDENT.

(a) Repeal.--Section 9337 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 903 of such title <> is amended by
striking the item related to section 9337.
SEC. 592. EXTENSION OF LIMITATION ON REDUCTION IN NUMBER OF
MILITARY AND CIVILIAN PERSONNEL ASSIGNED
TO DUTY WITH SERVICE REVIEW AGENCIES.

Section 1559(a) of title 10, United States Code, is amended by
striking ``December 31, 2016'' and inserting ``December 31, 2019''.
SEC. 593. ANNUAL REPORTS ON PROGRESS OF THE ARMY AND THE MARINE
CORPS IN INTEGRATING WOMEN INTO MILITARY
OCCUPATIONAL SPECIALITIES AND UNITS
RECENTLY OPENED TO WOMEN.

(a) Reports Required.--Not later than April 1, 2017, and each year
thereafter through 2020, the Chief of Staff of the Army and the
Commandant of the Marine Corps shall each submit to the Committees on
Armed Services of the Senate and the House of Representatives a report
on the current status of the implementation by the Army and the Marine
Corps, respectively, of the policy of Secretary of Defense dated March
9, 2016, to open to women military occupational specialties and units
previously closed to women.
(b) Elements.--Each report shall include, current as of the date of
such report and for the Armed Force covered by such report, the
following:
(1) The status of gender-neutral standards throughout the
Entry Level Training continuum.
(2) The propensity of applicants to apply for and access
into newly-opened ground combat programs, by gender and program.
(3) Success rates in Initial Screening Tests and Military
Occupational Speciality (MOS) Classification Standards for
newly-opened ground combat military occupational specialties, by
gender.
(4) Attrition rates and the top three causes of attrition
throughout the Entry Level Training continuum, by gender and
military occupational specialty.
(5) Reclassification rates and the top three causes of
reclassification throughout the Entry Level Training continuum,
by gender and military occupational specialty.
(6) Injury rates and the top five causes of injury
throughout the Entry Level Training continuum, by gender and
military occupational specialty.
(7) Injury rates and nondeployability rates in newly-opened
ground combat military occupational specialties, by gender and
military occupational specialty.

[[Page 2153]]

(8) Lateral move approval rates into newly-opened military
occupational specialties, by gender and military occupational
specialty.
(9) Reenlistment and retention rates in newly-opened ground
combat military occupational specialties, by gender and military
occupational specialty.
(10) Promotion rates in newly-opened ground combat military
occupational specialties, by grade and gender.
(11) Actions taken to address matters relating to equipment
sizing and supply, and facilities, in connection with the
implementation by such Armed Force of the policy referred to in
paragraph (1).

(c) Applicability to SOCOM.--In addition to the reports required by
subsection (a), the Commander of the United States Special Operations
Command shall submit to the Committees on Armed Services of the Senate
and the House of Representatives, on the dates provided for in
subsection (a), a report on the current status of the implementation by
the United States Special Operations Command of the policy of Secretary
of Defense referred to in subsection (a). Each report shall include the
matters specified in subsection (b) with respect to the United States
Special Operations Command.
SEC. 594. REPORT ON FEASABILITY OF ELECTRONIC TRACKING OF
OPERATIONAL ACTIVE-DUTY SERVICE PERFORMED
BY MEMBERS OF THE READY RESERVE OF THE
ARMED FORCES.

Not later than March 1, 2017, the Secretary of Defense shall submit
to the Committees on Armed Services of the Senate and the House of
Representatives a report on the feasability of establishing an
electronic means by which members of the Ready Reserve of the Armed
Forces can track their operational active-duty service performed after
January 28, 2008, under section 12301(a), 12301(d), 12301(g), 12302, or
12304 of title 10, United States Code. The means assessed for purposes
of the report shall include a tour calculator that specifies early
retirement credit authorized for each qualifying tour of active duty, as
well as cumulative early reserve retirement credit authorized to date
under section 12731(f) of such title.
SEC. 595. REPORT ON DISCHARGE BY WARRANT OFFICERS OF PILOT AND
OTHER FLIGHT OFFICER POSITIONS IN THE
NAVY, MARINE CORPS, AND AIR FORCE
CURRENTLY DISCHARGED BY COMMISSIONED
OFFICERS.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Navy and the Secretary of
the Air Force shall each submit to the Committees on Armed Services of
the Senate and the House of Representatives a report on the feasibility
and advisability of the discharge by warrant officers of pilot and other
flight officer positions in the Armed Forces under the jurisdiction of
such Secretary that are currently discharged by commissioned officers.
(b) Elements.--Each report under subsection (a) shall set forth, for
each Armed Force covered by such report, the following:
(1) An assessment of the feasibility and advisability of the
discharge by warrant officers of pilot and other flight officer
positions that are currently discharged by commissioned
officers.

[[Page 2154]]

(2) An identification of each such position, if any, for
which the discharge by warrant officers is assessed to be
feasible and advisable.
SEC. 596. BODY MASS INDEX TEST.

(a) Review Required.--Each Secretary of a military department shall
review--
(1) the current body mass index test procedure used by each
Armed Force under the jurisdiction of that Secretary; and
(2) other methods to measure body fat with a more holistic
health and wellness approach.

(b) Elements.--The review required under subsection (a) shall--
(1) address nutrition counseling;
(2) determine the best methods to be used by the Armed
Forces to assess body fat percentages; and
(3) improve the accuracy of body fat measurements.
SEC. 597. REPORT ON CAREER PROGRESSION TRACKS OF THE ARMED FORCES
FOR WOMEN IN COMBAT ARMS UNITS.

Not later than 30 days after the date of the enactment of this Act,
the Secretary of Defense shall submit to Congress a report setting forth
a description, for each Armed Force, of the following:
(1) The career progression track for entry level women as
officers in combat arms units of such Armed Force.
(2) The career progression track for laterally transferred
women as officers in combat arms units of such Armed Force.
(3) The career progression track for entry level women as
enlisted members in combat arms units of such Armed Force.
(4) The career progression track for laterally transferred
women as enlisted members in combat arms units of such Armed
Force.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2017 increase in military basic pay.
Sec. 602. Publication by Department of Defense of actual rates of basic
pay payable to members of the Armed Forces by pay grade for
annual or other pay periods.
Sec. 603. Extension of authority to provide temporary increase in rates
of basic allowance for housing under certain circumstances.
Sec. 604. Reports on a new single-salary pay system for members of the
Armed Forces.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay
authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay
authorities for health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for
nuclear officers.
Sec. 614. One-year extension of authorities relating to title 37
consolidated special pay, incentive pay, and bonus
authorities.
Sec. 615. One-year extension of authorities relating to payment of other
title 37 bonuses and special pays.

[[Page 2155]]

Sec. 616. Aviation incentive pay and bonus matters.
Sec. 617. Conforming amendment to consolidation of special pay,
incentive pay, and bonus authorities.
Sec. 618. Technical amendments relating to 2008 consolidation of certain
special pay authorities.

Subtitle C--Travel and Transportation Allowances

Sec. 621. Maximum reimbursement amount for travel expenses of members of
the Reserves attending inactive duty training outside of
normal commuting distances.

Subtitle D--Disability Pay, Retired Pay, and Survivor Benefits

Part I--Amendments in Connection With Retired Pay Reform

Sec. 631. Election period for members in the service academies and
inactive Reserves to participate in the modernized retirement
system.
Sec. 632. Effect of separation of members from the uniformed services on
participation in the Thrift Savings Plan.
Sec. 633. Continuation pay for full Thrift Savings Plan members who have
completed 8 to 12 years of service.
Sec. 634. Combat-related special compensation coordinating amendment.

Part II--Other Matters

Sec. 641. Use of member's current pay grade and years of service and
retired pay cost-of-living adjustments, rather than final
retirement pay grade and years of service, in a division of
property involving disposable retired pay.
Sec. 642. Equal benefits under Survivor Benefit Plan for survivors of
reserve component members who die in the line of duty during
inactive-duty training.
Sec. 643. Authority to deduct Survivor Benefit Plan premiums from
combat-related special compensation when retired pay not
sufficient.
Sec. 644. Extension of allowance covering monthly premium for
Servicemembers' Group Life Insurance while in certain
overseas areas to cover members in any combat zone or
overseas direct support area.
Sec. 645. Authority for payment of pay and allowances and retired and
retainer pay pursuant to power of attorney.
Sec. 646. Extension of authority to pay special survivor indemnity
allowance under the Survivor Benefit Plan.
Sec. 647. Repeal of obsolete authority for combat-related injury
rehabilitation pay.
Sec. 648. Independent assessment of the Survivor Benefit Plan.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits
and Operations

Sec. 661. Protection and enhancement of access to and savings at
commissaries and exchanges.
Sec. 662. Acceptance of Military Star Card at commissaries.

Subtitle F--Other Matters

Sec. 671. Recovery of amounts owed to the United States by members of
the uniformed services.
Sec. 672. Modification of flat rate per diem requirement for personnel
on long-term temporary duty assignments.

Subtitle A--Pay and Allowances

SEC. 601. <>  FISCAL YEAR 2017 INCREASE
IN MILITARY BASIC PAY.

(a) Waiver of Section 1009 Adjustment.--The adjustment to become
effective during fiscal year 2017 required by section 1009 of title 37,
United States Code, in the rates of monthly basic pay authorized members
of the uniformed services shall not be made.
(b) Increase in Basic Pay.--Effective on January 1, 2017, the rates
of monthly basic pay for members of the uniformed services are increased
by 2.1 percent.

[[Page 2156]]

SEC. 602. <>  PUBLICATION BY DEPARTMENT OF
DEFENSE OF ACTUAL RATES OF BASIC PAY
PAYABLE TO MEMBERS OF THE ARMED FORCES BY
PAY GRADE FOR ANNUAL OR OTHER PAY PERIODS.

Any pay table published or otherwise issued by the Department of
Defense to indicate the rates of basic pay of the Armed Forces in effect
for members of the Armed Forces for a calendar year or other period
shall state the rate of basic pay to be received by members in each pay
grade for such year or period as specified or otherwise provided by
applicable law, including any rate to be so received pursuant during
such year or period by the operation of a ceiling under section
203(a)(2) of title 37, United States Code, or a similar provision in an
annual defense authorization Act.
SEC. 603. EXTENSION OF AUTHORITY TO PROVIDE TEMPORARY INCREASE IN
RATES OF BASIC ALLOWANCE FOR HOUSING UNDER
CERTAIN CIRCUMSTANCES.

Section 403(b)(7)(E) of title 37, United States Code, is amended by
striking ``December 31, 2016'' and inserting ``December 31, 2017''.
SEC. 604. REPORTS ON A NEW SINGLE-SALARY PAY SYSTEM FOR MEMBERS OF
THE ARMED FORCES.

(a) Report on Plan To Implement New Pay Structure.--Not later than
March 1, 2017, the Secretary of Defense shall submit to the Committees
on Armed Services of the Senate and the House of Representative a report
that sets forth the following:
(1) The military pay tables as of January 1, 2017,
reflecting the Regular Military Compensation of members of the
Armed Forces as of that date in the range of grades, dependency
statuses, and assignment locations.
(2) A comprehensive description of the manner in which the
Department of Defense would begin, by not later than January 1,
2018, to implement a transition between the current pay
structure for members of the Armed Forces and a new pay
structure for members of the Armed Forces as provided for by
this section.

(b) Report on Elements of New Pay Structure.--Not later than January
1, 2018, the Secretary shall submit to the Committees on Armed Services
of the Senate and the House of Representative a report that sets forth
the following:
(1) A description and comparison of the current pay
structure for members of the Armed Forces and a new pay
structure for members of the Armed Forces, including new pay
tables, that uses a single-salary pay system (as adjusted by the
same cost-of-living adjustment that the Department of Defense
uses worldwide for civilian employees) based on the assumptions
in subsection (c).
(2) A proposal for such legislative and administrative
action as the Secretary considers appropriate to implement the
new pay structure, and to provide for a transition between the
current pay structure and the new pay structure.
(3) A comprehensive schedule for the implementation of the
new pay structure and for the transition between the current pay
structure and the new pay structure, including all significant
deadlines.

(c) New Pay Structure.--The new pay structure described pursuant to
subsection (b)(1) shall assume the repeal of the basic

[[Page 2157]]

allowance for housing and basic allowance subsistence for members of the
Armed Forces in favor of a single-salary pay system, and shall include
the following:
(1) A statement of pay comparability with the civilian
sector adequate to effectively recruit and retain a high-quality
All-Volunteer Force.
(2) The level of pay necessary by grade and years of service
to meet pay comparability as described in paragraph (1) in order
to recruit and retain a high-quality All-Volunteer Force.
(3) Necessary modifications to the military retirement
system, including the retired pay multiplier, to ensure that
members of the Armed Forces under the pay structure are situated
similarly to where they would otherwise be under the military
retirement system that will take effect on January 1, 2018, by
reason part I of subtitle D of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129
Stat. 842), and the amendments made by that part.

(d) Cost Containment.--The single-salary pay system under the new
pay structure provided for by this section shall be a single-salary pay
system that will result in no or minimal additional costs to the
Government, both in terms of annual discretionary outlays and
entitlements, when compared with the continuation of the current pay
system for members of the Armed Forces.

Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY
AUTHORITIES FOR RESERVE FORCES.

The following sections of title 37, United States Code, are amended
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
(1) Section 308b(g), relating to Selected Reserve
reenlistment bonus.
(2) Section 308c(i), relating to Selected Reserve
affiliation or enlistment bonus.
(3) Section 308d(c), relating to special pay for enlisted
members assigned to certain high-priority units.
(4) Section 308g(f)(2), relating to Ready Reserve enlistment
bonus for persons without prior service.
(5) Section 308h(e), relating to Ready Reserve enlistment
and reenlistment bonus for persons with prior service.
(6) Section 308i(f), relating to Selected Reserve enlistment
and reenlistment bonus for persons with prior service.
(7) Section 478a(e), relating to reimbursement of travel
expenses for inactive-duty training outside of normal commuting
distance.
(8) Section 910(g), relating to income replacement payments
for reserve component members experiencing extended and frequent
mobilization for active duty service.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY
AUTHORITIES FOR HEALTH CARE PROFESSIONALS.

(a) Title 10 Authorities.--The following sections of title 10,
United States Code, are amended by striking ``December 31, 2016'' and
inserting ``December 31, 2017'':

[[Page 2158]]

(1) Section 2130a(a)(1), relating to nurse officer candidate
accession program.
(2) Section 16302(d), relating to repayment of education
loans for certain health professionals who serve in the Selected
Reserve.

(b) Title 37 Authorities.--The following sections of title 37,
United States Code, are amended by striking ``December 31, 2016'' and
inserting ``December 31, 2017'':
(1) Section 302c-1(f), relating to accession and retention
bonuses for psychologists.
(2) Section 302d(a)(1), relating to accession bonus for
registered nurses.
(3) Section 302e(a)(1), relating to incentive special pay
for nurse anesthetists.
(4) Section 302g(e), relating to special pay for Selected
Reserve health professionals in critically short wartime
specialties.
(5) Section 302h(a)(1), relating to accession bonus for
dental officers.
(6) Section 302j(a), relating to accession bonus for
pharmacy officers.
(7) Section 302k(f), relating to accession bonus for medical
officers in critically short wartime specialties.
(8) Section 302l(g), relating to accession bonus for dental
specialist officers in critically short wartime specialties.
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES
FOR NUCLEAR OFFICERS.

The following sections of title 37, United States Code, are amended
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
(1) Section 312(f), relating to special pay for nuclear-
qualified officers extending period of active service.
(2) Section 312b(c), relating to nuclear career accession
bonus.
(3) Section 312c(d), relating to nuclear career annual
incentive bonus.
SEC. 614. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO TITLE 37
CONSOLIDATED SPECIAL PAY, INCENTIVE PAY,
AND BONUS AUTHORITIES.

The following sections of title 37, United States Code, are amended
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
(1) Section 331(h), relating to general bonus authority for
enlisted members.
(2) Section 332(g), relating to general bonus authority for
officers.
(3) Section 333(i), relating to special bonus and incentive
pay authorities for nuclear officers.
(4) Section 334(i), relating to special aviation incentive
pay and bonus authorities for officers.
(5) Section 335(k), relating to special bonus and incentive
pay authorities for officers in health professions.
(6) Section 336(g), relating to contracting bonus for cadets
and midshipmen enrolled in the Senior Reserve Officers' Training
Corps.
(7) Section 351(h), relating to hazardous duty pay.

[[Page 2159]]

(8) Section 352(g), relating to assignment pay or special
duty pay.
(9) Section 353(i), relating to skill incentive pay or
proficiency bonus.
(10) Section 355(h), relating to retention incentives for
members qualified in critical military skills or assigned to
high priority units.
SEC. 615. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF
OTHER TITLE 37 BONUSES AND SPECIAL PAYS.

The following sections of title 37, United States Code, are amended
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
(1) Section 301b(a), relating to aviation officer retention
bonus.
(2) Section 307a(g), relating to assignment incentive pay.
(3) Section 308(g), relating to reenlistment bonus for
active members.
(4) Section 309(e), relating to enlistment bonus.
(5) Section 316a(g), relating to incentive pay for members
of precommissioning programs pursuing foreign language
proficiency.
(6) Section 324(g), relating to accession bonus for new
officers in critical skills.
(7) Section 326(g), relating to incentive bonus for
conversion to military occupational specialty to ease personnel
shortage.
(8) Section 327(h), relating to incentive bonus for transfer
between Armed Forces.
(9) Section 330(f), relating to accession bonus for officer
candidates.
SEC. 616. AVIATION INCENTIVE PAY AND BONUS MATTERS.

(a) Maximum Incentive Pay and Bonus Amounts.--Paragraph (1) of
section 334(c) of title 37, United States Code, is amended by striking
subparagraphs (A) and (B) and inserting the following new subparagraphs:
``(A) aviation incentive pay under subsection (a)
shall be paid at a monthly rate not to exceed $1,000 per
month; and
``(B) an aviation bonus under subsection (b) may not
exceed $35,000 for each 12-month period of obligated
service agreed to under subsection (d).''.

(b) Annual Business Case for Payment of Aviation Bonus.--Such
section is further amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(2) by inserting after paragraph (1) the following new
paragraph (2):
``(2) Annual business case for payment of aviation bonus
amounts.--
``(A) In general.--The Secretary concerned shall
determine the amount of the aviation bonus payable under
paragraph (1)(B) under agreements entered into under
subsection (d) during a fiscal year solely through a
business case analysis of the amount required to be paid
under such agreements in order to address anticipated
manning shortfalls for such fiscal year by aircraft type
category.

[[Page 2160]]

``(B) Budget justification documents.--The budget
justification documents in support of the budget of the
President for a fiscal year (as submitted to Congress
pursuant to section 1105 of title 31) shall set forth
for each uniformed service the following:
``(i) The amount requested for the payment of
aviation bonuses under subsection (b) using
amounts authorized to be appropriated for the
fiscal year concerned by aircraft type category.
``(ii) The business case analysis supporting
the amount so requested by aircraft type category.
``(iii) For each aircraft type category,
whether or not the amount requested will permit
the payment during the fiscal year concerned of
the maximum amount of the aviation bonus
authorized by paragraph (1)(B).
``(iv) If any amount requested is to address
manning shortfalls, a description of any plans of
the Secretary concerned to address such shortfalls
by nonmonetary means.''.
SEC. 617. CONFORMING AMENDMENT TO CONSOLIDATION OF SPECIAL PAY,
INCENTIVE PAY, AND BONUS AUTHORITIES.

Section 332(c)(1)(B) of title 37, United States Code, is amended by
striking ``$12,000'' and inserting ``$20,000''.
SEC. 618. TECHNICAL AMENDMENTS RELATING TO 2008 CONSOLIDATION OF
CERTAIN SPECIAL PAY AUTHORITIES.

(a) Family Care Plans.--Section 586 of the National Defense
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C.
991 note) is amended by inserting ``or 351'' after ``section 310''.
(b) Dependents' Medical Care.--Section 1079(g)(1) of title 10,
United States Code, is amended by inserting ``or 351'' after ``section
310''.
(c) Retention on Active Duty During Disability Evaluation Process.--
Section 1218(d)(1) of title 10, United States Code, is amended by
inserting ``or 351'' after ``section 310''.
(d) Storage Space.--Section 362(1) of the John Warner National
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10
U.S.C. 2825 note) is amended by inserting ``, or paragraph (1) or (3) of
section 351(a),'' after ``section 310''.
(e) Student Assistance Programs.--Sections 455(o)(3)(B) and
465(a)(2)(D) of the Higher Education Act of 1965 (20 U.S.C.
1087e(o)(3)(B), 1087ee(a)(2)(D)) are amended by inserting ``, or
paragraph (1) or (3) of section 351(a),'' after ``section 310''.
(f) Armed Forces Retirement Home.--Section 1512(a)(3)(A) of the
Armed Forces Retirement Home Act of 1991 (24 U.S.C. 412(a)(3)(A)) is
amended by inserting ``or 351'' after ``section 310''.
(g) Veterans of Foreign Wars Membership.--Section 230103(3) of title
36, United States Code, is amended by inserting ``or 351'' after
``section 310''.
(h) Military Pay and Allowances.--Title 37, United States Code, is
amended--
(1) in section 212(a), by inserting ``, or paragraph (1) or
(3) of section 351(a),'' after ``section 310'';
(2) in section 402a(b)(3)(B), by inserting ``or 351'' after
``section 310'';

[[Page 2161]]

(3) in section 481a(a), by inserting ``or 351'' after
``section 310'';
(4) in section 907(d)(1)(H), by inserting ``or 351'' after
``section 310''; and
(5) in section 910(b)(2)(B), by inserting ``, or paragraph
(1) or (3) of section 351(a),'' after ``section 310''.

(i) Exclusions From Income for Purpose of Supplemental Security
Income.--Section 1612(b)(20) of the Social Security Act (42 U.S.C.
1382a(b)(20)) is amended by inserting ``, or paragraph (1) or (3) of
section 351(a),'' after ``section 310''.
(j) Exclusions From Income for Purpose of Head Start Program.--
Section 645(a)(3)(B)(i) of the Head Start Act (42 U.S.C.
9840(a)(3)(B)(i)) is amended by inserting ``or 351'' after ``section
310''.
(k) Exclusions From Gross Income for Federal Income Tax Purposes.--
Section 112(c)(5)(B) of the Internal Revenue Code of 1986 <> is amended by inserting ``, or paragraph (1) or (3) of section
351(a),'' after ``section 310''.

Subtitle C--Travel and Transportation Allowances

SEC. 621. MAXIMUM REIMBURSEMENT AMOUNT FOR TRAVEL EXPENSES OF
MEMBERS OF THE RESERVES ATTENDING INACTIVE
DUTY TRAINING OUTSIDE OF NORMAL COMMUTING
DISTANCES.

Section 478a(c) of title 37, United States Code, is amended--
(1) by striking ``The amount'' and inserting the following:
``(1) Except as provided by paragraph (2), the amount''; and
(2) by adding at the end the following new paragraph:

``(2) The Secretary concerned may authorize, on a case-by-case
basis, a higher reimbursement amount for a member under subsection (a)
when the member--
``(A) resides--
``(i) in the same State as the training location;
and
``(ii) outside of an urbanized area with a
population of 50,000 or more, as determined by the
Bureau of the Census; and
``(B) is required to commute to a training location--
``(i) using an aircraft or boat on account of
limited or nonexistent vehicular routes to the training
location or other geographical challenges; or
``(ii) from a permanent residence located more than
75 miles from the training location.''.

[[Page 2162]]

Subtitle D--Disability Pay, Retired Pay, and Survivor Benefits

PART I--AMENDMENTS IN CONNECTION WITH RETIRED PAY REFORM

SEC. 631. ELECTION PERIOD FOR MEMBERS IN THE SERVICE ACADEMIES AND
INACTIVE RESERVES TO PARTICIPATE IN THE
MODERNIZED RETIREMENT SYSTEM.

(a) In General.--Paragraph (4)(C) of section 1409(b) of title 10,
United States Code, is amended--
(1) in clause (i), by striking ``and (iii)'' and inserting
``, (iii), (iv), and (v)''; and
(2) by adding at the end the following new clauses:
``(iv) Cadets and midshipmen, etc.--A member
of a uniformed service who serves as a cadet,
midshipman, or member of the Senior Reserve
Officers' Training Corps during the election
period specified in clause (i) shall make the
election described in subparagraph (B)--
``(I) on or after the date on which
such cadet, midshipman, or member of the
Senior Reserve Officers' Training Corps
is appointed as a commissioned officer
or otherwise begins to receive basic
pay; and
``(II) not later than 30 days after
such date or the end of such election
period, whichever is later.
``(v) Inactive reserves.--A member of a
reserve component who is not in an active status
during the election period specified in clause (i)
shall make the election described in subparagraph
(B)--
``(I) on or after the date on which
such member is transferred from an
inactive status to an active status or
active duty; and
``(II) not later than 30 days after
such date or the end of such election
period, whichever is later.''.

(b) <>  Effective Date.--The amendments
made by subsection (a) shall take effect on January 1, 2018, immediately
after the coming into effect of the amendments made by section 631(a) of
the National Defense Authorization Act for Fiscal Year 2016 (Public Law
114-92; 129 Stat. 842), to which the amendments made by subsection (a)
relate.
SEC. 632. <>  EFFECT OF SEPARATION OF
MEMBERS FROM THE UNIFORMED SERVICES ON
PARTICIPATION IN THE THRIFT SAVINGS PLAN.

Effective as of the date of the enactment of this Act, paragraph (2)
of section 632(c) of the National Defense Authorization Act for Fiscal
Year 2016 (Public Law 114-92; 129 Stat. 847) is repealed, and the
amendment proposed to be made by that paragraph shall not be made or go
into effect.

[[Page 2163]]

SEC. 633. CONTINUATION PAY FOR FULL THRIFT SAVINGS PLAN MEMBERS
WHO HAVE COMPLETED 8 TO 12 YEARS OF
SERVICE.

(a) Continuation Pay.--Subsection (a) of section 356 of title 37,
United States Code, is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph (1):
``(1) has completed not less than 8 and not more than 12
years of service in a uniformed service; and''; and
(2) in paragraph (2), by striking ``an additional 4 years''
and inserting ``not less than 3 additional years''.

(b) Payment Amount.--Subsection (b) of such section is amended by
striking all the matter preceding paragraph (1) and inserting the
following:
``(b) Payment Amount.--The Secretary concerned shall determine the
payment amount under this section as a multiple of a full TSP member's
monthly basic pay. The multiple for a full TSP member who is a member of
a regular component or a reserve component, if the member is performing
active Guard and Reserve duty (as defined in section 101(d)(6) of title
10), shall not be less than 2.5 times the member's monthly basic pay.
The multiple for a full TSP member who is a member of a reserve
component not performing active Guard or Reserve duty (as so defined)
shall not be less than 0.5 times the monthly basic pay to which the
member would be entitled if the member were a member of a regular
component. The maximum amount the Secretary concerned may pay a member
under this section is--''.
(c) Timing of Payment.--Subsection (d) of such section is amended to
read as follows:
``(d) Timing of Payment.--The Secretary concerned shall pay
continuation pay under subsection (a) to a full TSP member when the
member has completed not less than 8 and not more than 12 years of
service in a uniformed service.''.
(d) Conforming and Clerical Amendments.--
(1) Heading.--The heading of such section is amended to read
as follows:
``Sec. 356. Continuation pay: full TSP members with 8 to 12 years
of service''.
(2) Table of sections.--The table of sections at the
beginning of chapter 5 of such title <> is amended by striking the item relating to section 356
and inserting the following new item:

``356. Continuation pay: full TSP members with 8 to 12 years of
service.''.

(e) <>  Effective Date.--The amendments made
by this section shall take effect on January 1, 2018, immediately after
the coming into effect of the amendments providing for section 356 of
title 37, United States Code, to which the amendments made by this
section relate.
SEC. 634. COMBAT-RELATED SPECIAL COMPENSATION COORDINATING
AMENDMENT.

(a) In General.--Section 1413a(b)(3)(B) of title 10, United States
Code, is amended by striking `` 2\1/2\ percent'' and inserting ``the
retired pay percentage (determined for the member under section 1409(b)
of this title)''.

[[Page 2164]]

(b) <>  Effective Date.--The amendment
made by subsection (a) shall take effect on January 1, 2018, immediately
after the coming into effect of the amendments made by part I of
subtitle D of title VI of the National Defense Authorization Act for
Fiscal Year 2016 (Public Law 114-92; 129 Stat. 842), to which the
amendment made by subsection (a) relates.

PART II--OTHER MATTERS

SEC. 641. USE OF MEMBER'S CURRENT PAY GRADE AND YEARS OF SERVICE
AND RETIRED PAY COST-OF-LIVING
ADJUSTMENTS, RATHER THAN FINAL RETIREMENT
PAY GRADE AND YEARS OF SERVICE, IN A
DIVISION OF PROPERTY INVOLVING DISPOSABLE
RETIRED PAY.

(a) In General.--Section 1408(a)(4) of title 10, United States Code,
is amended--
(1) by redesignating subparagraphs (A), (B), (C), (D) as
clauses (i), (ii), (iii), (iv), respectively;
(2) by inserting ``(A)'' after ``(4)'';
(3) in subparagraph (A), as designated by paragraph (2), by
inserting ``(as determined pursuant to subparagraph (B)'' after
``member is entitled''; and
(4) by adding at the end the following new subparagraph:
``(B) For purposes of subparagraph (A), the total monthly
retired pay to which a member is entitled shall be--
``(i) the amount of basic pay payable to the member
for the member's pay grade and years of service at the
time of the court order, as increased by
``(ii) each cost-of-living adjustment that occurs
under section 1401a(b) of this title between the time of
the court order and the time of the member's retirement
using the adjustment provisions under that section
applicable to the member upon retirement.''.

(b) <>  Application of Amendments.--The
amendments made by subsection (a) shall apply with respect to any
division of property as part of a final decree of divorce, dissolution,
annulment, or legal separation involving a member of the Armed Forces to
which section 1408 of title 10, United States Code, applies that becomes
final after the date of the enactment of this Act.
SEC. 642. EQUAL BENEFITS UNDER SURVIVOR BENEFIT PLAN FOR SURVIVORS
OF RESERVE COMPONENT MEMBERS WHO DIE IN
THE LINE OF DUTY DURING INACTIVE-DUTY
TRAINING.

(a) Treatment of Inactive-Duty Training in Same Manner as Active
Duty.--Section 1451(c)(1)(A) of title 10, United States Code, is
amended--
(1) in clause (i)--
(A) by inserting ``or 1448(f)'' after ``section
1448(d)''; and
(B) by inserting ``or (iii)'' after ``clause (ii)'';
and
(2) in clause (iii)--
(A) by striking ``section 1448(f) of this title''
and inserting ``section 1448(f)(1)(A) of this title by
reason of the death of a member or former member not in
line of duty''; and
(B) by striking ``active service'' and inserting
``service''.

[[Page 2165]]

(b) Consistent Treatment of Dependent Children.--Paragraph (2) of
section 1448(f) of title 10, United States Code, is amended to read as
follows:
``(2) Dependent children annuity.--
``(A) Annuity when no eligible surviving spouse.--In
the case of a person described in paragraph (1), the
Secretary concerned shall pay an annuity under this
subchapter to the dependent children of that person
under section 1450(a)(2) of this title as applicable.
``(B) Optional annuity when there is an eligible
surviving spouse.--The Secretary may pay an annuity
under this subchapter to the dependent children of a
person described in paragraph (1) under section
1450(a)(3) of this title, if applicable, instead of
paying an annuity to the surviving spouse under
paragraph (1), if the Secretary concerned, in
consultation with the surviving spouse, determines it
appropriate to provide an annuity for the dependent
children under this paragraph instead of an annuity for
the surviving spouse under paragraph (1).''.

(c) Deemed Elections.--Section 1448(f) of title 10, United States
Code, is further amended by adding at the end the following new
paragraph:
``(5) Deemed election to provide an annuity for dependent.--
Paragraph (6) of subsection (d) shall apply in the case of a
member described in paragraph (1) who dies after November 23,
2003, when no other annuity is payable on behalf of the member
under this subchapter.''.

(d) Availability of Special Survivor Indemnity Allowance.--Section
1450(m)(1)(B) of title 10, United States Code, is amended by inserting
``or (f)'' after ``subsection (d)''.
(e) <>  Application of Amendments.--
(1) Payment.--No annuity benefit under subchapter II of
chapter 73 of title 10, United States Code, shall accrue to any
person by reason of the amendments made by this section for any
period before the date of the enactment of this Act.
(2) Elections.--For any death that occurred before the date
of the enactment of this Act with respect to which an annuity
under such subchapter is being paid (or could be paid) to a
surviving spouse, the Secretary concerned may, within six months
of that date and in consultation with the surviving spouse,
determine it appropriate to provide an annuity for the dependent
children of the decedent under paragraph 1448(f)(2)(B) of title
10, United States Code, as added by subsection (b), instead of
an annuity for the surviving spouse. Any such determination and
resulting change in beneficiary shall be effective as of the
first day of the first month following the date of the
determination.
SEC. 643. AUTHORITY TO DEDUCT SURVIVOR BENEFIT PLAN PREMIUMS FROM
COMBAT-RELATED SPECIAL COMPENSATION WHEN
RETIRED PAY NOT SUFFICIENT.

(a) Authority.--Subsection (d) of section 1452 of title 10, United
States Code, is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph (2):

[[Page 2166]]

``(2) Deduction from combat-related special compensation
when retired pay not adequate.--In the case of a person who has
elected to participate in the Plan and who has been awarded both
retired pay and combat-related special compensation under
section 1413a of this title, if a deduction from the person's
retired pay for any period cannot be made in the full amount
required, there shall be deducted from the person's combat-
related special compensation in lieu of deduction from the
person's retired pay the amount that would otherwise have been
deducted from the person's retired pay for that period.''.

(b) Conforming Amendments to Section 1452.--
(1) Subsection (d) of such section is further amended--
(A) in the subsection heading, by inserting ``or Not
Sufficient'' after ``Not Paid'';
(B) in paragraph (1), by inserting before the period
at the end the following: ``, except to the extent that
the required deduction is made pursuant to paragraph
(2)''; and
(C) in paragraph (3), as redesignated by subsection
(a)(1), by striking ``Paragraph (1) does not'' and
inserting ``Paragraphs (1) and (2) do not''.
(2) Subsection (f)(1) of such section is amended by
inserting ``or combat-related special compensation'' after
``from retired pay''.
(3) Subsection (g)(4) of such section is amended--
(A) in the paragraph heading, by inserting ``or
crsc'' after ``retired pay''; and
(B) by inserting ``or combat-related special
compensation'' after ``from the retired pay''.

(c) Conforming Amendments to Other Provisions of SBP Statute.--
(1) Section 1449(b)(2) of such title is amended--
(A) in the paragraph heading, by inserting ``or
crsc'' after ``retired pay''; and
(B) by inserting ``or combat-related special
compensation'' after ``from retired pay''.
(2) Section 1450(e) of such title is amended--
(A) in the subsection heading, by inserting ``or
CRSC'' after ``Retired Pay''; and
(B) in paragraph (1), by inserting ``or combat-
related special compensation'' after ``from the retired
pay''.
SEC. 644. EXTENSION OF ALLOWANCE COVERING MONTHLY PREMIUM FOR
SERVICEMEMBERS' GROUP LIFE INSURANCE WHILE
IN CERTAIN OVERSEAS AREAS TO COVER MEMBERS
IN ANY COMBAT ZONE OR OVERSEAS DIRECT
SUPPORT AREA.

(a) Expansion of Coverage.--Subsection (a) of section 437 of title
37, United States Code, is amended--
(1) by inserting ``(1)'' before ``In the case of'';
(2) by striking ``who serves in the theater of operations
for Operation Enduring Freedom or Operation Iraqi Freedom'' and
inserting ``who serves in a designated duty assignment''; and
(3) by adding at the end the following new paragraph:

``(2) In this subsection, the term `designated duty assignment'
means a permanent or temporary duty assignment outside the

[[Page 2167]]

United States or its possessions in support of a contingency operation
in an area that--
``(A) has been designated a combat zone; or
``(B) is in direct support of an area that has been
designated a combat zone.''.

(b) Conforming Amendments.--
(1) Cross-reference.--Subsection (b) of such section is
amended by striking ``theater of operations'' and inserting
``designated duty assignment''.
(2) Section heading.--The heading of such section is amended
to read as follows:
``Sec. 437. Allowance to cover monthly premiums for
Servicemembers' Group Life Insurance: members
serving in a designated duty assignment''.
(3) Table of sections.--The item relating to section 437 in
the table of sections at the beginning of chapter 7 of such
title <> is amended to read as follows:

``437. Allowance to cover monthly premium for Servicemembers' Group Life
Insurance: members serving in a designated duty
assignment.''.

(c) <>  Effective Date.--The amendments made
by this section shall apply to service by members of the Armed Forces in
a designated duty assignment (as defined in subsection (a)(2) of section
437 of title 37, United States Code) for any month beginning on or after
the date of the enactment of this Act.
SEC. 645. AUTHORITY FOR PAYMENT OF PAY AND ALLOWANCES AND RETIRED
AND RETAINER PAY PURSUANT TO POWER OF
ATTORNEY.

Section 602 of title 37, United States Code, is amended--
(1) in subsection (a)--
(A) by striking ``, in the opinion of a board of
medical officers or physicians,''; and
(B) by striking ``use or benefit'' and all that
follows through ``any person designated'' and inserting
the following: ``use or benefit to--
``(1) a legal committee, guardian, or other representative
that has been appointed by a court of competent jurisdiction;
``(2) an individual to whom the member has granted authority
to manage such funds pursuant to a valid and legally executed
durable power of attorney; or
``(3) any person designated'';
(2) in subsection (b)--
(A) by striking ``The board shall consist'' and
inserting ``An individual may not be designated under
subsection (a)(3) to receive payments unless a board
consisting''; and
(B) by inserting ``determines that the member is
mentally incapable of managing the member's affairs. Any
such board shall be'' after ``treatment of mental
disorders,'';
(3) in subsection (c), by striking ``designated'' and
inserting ``authorized to receive payments'';
(4) in subsection (d), by inserting ``, unless a court of
competent jurisdiction orders payment of such fee, commission,
or other charge'' before the period;
(5) by striking subsection (e);
(6) by redesignating subsection (f) as subsection (e); and
(7) in subsection (e), as redesignated by paragraph (6)--

[[Page 2168]]

(A) by inserting ``under subsection (a)(3)'' after
``who is designated''; and
(B) by striking ``$1,000'' and inserting
``$25,000''.
SEC. 646. EXTENSION OF AUTHORITY TO PAY SPECIAL SURVIVOR INDEMNITY
ALLOWANCE UNDER THE SURVIVOR BENEFIT PLAN.

Section 1450(m) of title 10, United States Code, is amended--
(1) in paragraph (2)(I), by striking ``fiscal year 2017''
and inserting ``each of fiscal years 2017 and 2018''; and
(2) in paragraph (6)--
(A) by striking ``September 30, 2017'' and inserting
``May 31, 2018''; and
(B) by striking ``October 1, 2017'' both places it
appears and inserting ``June 1, 2018''.
SEC. 647. REPEAL OF OBSOLETE AUTHORITY FOR COMBAT-RELATED INJURY
REHABILITATION PAY.

(a) Repeal.--Section 328 of title 37, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 5 of such title <> is amended by
striking the item relating to section 328.
SEC. 648. INDEPENDENT ASSESSMENT OF THE SURVIVOR BENEFIT PLAN.

(a) Assessment Required.--The Secretary of Defense shall provide for
an independent assessment of the Survivor Benefit Plan (SBP) under
subchapter II of chapter 73 of title 10, United States Code, by a
Federally-funded research and development center (FFRDC).
(b) Assessment Elements.--The assessment conducted pursuant to
subsection (a) shall include, but not be limited to, the following:
(1) The purposes of the Survivor Benefit Plan, the manner in
which the Plan interacts with other Federal programs to provide
financial stability and resources for survivors of members of
the Armed Forces and military retirees, and a comparison between
the benefits available under the Plan, on the one hand, and
benefits available to Government and private sector employees,
on the other hand, intended to provide financial stability and
resources for spouses and other dependents when a primary family
earner dies.
(2) The effectiveness of the Survivor Benefit Plan in
providing survivors with intended benefits, including the
provision of survivor benefits for survivors of members of the
Armed Forces dying on active duty and members dying while in
reserve active-status.
(3) The feasibility and advisability of providing survivor
benefits through alternative insurance products available
commercially for similar purposes, the extent to which the
Government could subsidize such products at no cost in excess of
the costs of the Survivor Benefit Plan, and the extent to which
such products might meet the needs of survivors, especially
those on fixed incomes, to maintain financial stability.

(c) Report.--Not later than one year after the date of the enactment
of this Act, the Secretary shall submit to the Committees on Armed
Services of the Senate and the House of Representatives

[[Page 2169]]

a report setting forth the results of the assessment conducted pursuant
to subsection (a), together with such recommendations as the Secretary
considers appropriate for legislative or administration action in light
of the results of the assessment.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits
and Operations

SEC. 661. PROTECTION AND ENHANCEMENT OF ACCESS TO AND SAVINGS AT
COMMISSARIES AND EXCHANGES.

(a) Optimization Strategy.--Section 2481(c) of title 10, United
States Code, is amended by adding at the end the following paragraph:
``(3)(A) The Secretary of Defense shall develop and implement a
comprehensive strategy to optimize management practices across the
defense commissary system and the exchange system that reduce reliance
of those systems on appropriated funding without reducing benefits to
the patrons of those systems or the revenue generated by nonappropriated
fund entities or instrumentalities of the Department of Defense for the
morale, welfare, and recreation of members of the armed forces.
``(B) The Secretary shall ensure that savings generated due to such
optimization practices are shared by the defense commissary system and
the exchange system through contracts or agreements that appropriately
reflect the participation of the systems in the development and
implementation of such practices.
``(C) If the Secretary determines that the reduced reliance on
appropriated funding pursuant to subparagraph (A) is insufficient to
maintain the benefits to the patrons of the defense commissary system,
and if the Secretary converts the defense commissary system to a
nonappropriated fund entity or instrumentality pursuant to paragraph (1)
of section 2484(j) of this title, the Secretary shall transfer
appropriated funds pursuant to paragraph (2) of such section to ensure
the maintenance of such benefits.
``(4) On not less than a quarterly basis, the Secretary shall
provide to the congressional defense committees a briefing on the
defense commissary system, including--
``(A) an assessment of the savings the system provides
patrons;
``(B) the status of implementing section 2484(i) of this
title;
``(C) the status of implementing section 2484(j) of this
title, including whether the system requires any appropriated
funds pursuant to paragraph (2) of such section;
``(D) the status of carrying out a program for such system
to sell private label merchandise; and
``(E) any other matters the Secretary considers
appropriate.''.

(b) Authorization to Supplement Appropriations Through Business
Optimization.--Section 2483(c) of such title is amended by adding at the
end the following new sentence: ``Such appropriated amounts may also be
supplemented with additional funds derived from improved management
practices implemented pursuant to sections 2481(c)(3) and 2487(c) of
this title and the variable pricing program implemented pursuant to
section 2484(i) of this title.''.

[[Page 2170]]

(c) Variable Pricing Pilot Program.--Section 2484 of such title is
amended by adding at the end the following new subsections:
``(i) Variable Pricing Program.--(1) Notwithstanding subsection (e),
and subject to subsection (k), the Secretary of Defense may establish a
variable pricing program pursuant to which prices may be established in
response to market conditions and customer demand, in accordance with
the requirements of this subsection. Notwithstanding the amount of the
uniform surcharge assessed in subsection (d), the Secretary may provide
for an alternative surcharge of not more than five percent of sales
proceeds under the variable pricing program to be made available for the
purposes specified in subsection (h).
``(2) Subject to subsection (k), before establishing a variable
pricing program under this subsection, the Secretary shall establish the
following:
``(A) Specific, measurable benchmarks for success in the
provision of high quality grocery merchandise, discount savings
to patrons, and levels of customer satisfaction while achieving
savings for the Department of Defense.
``(B) A baseline of overall savings to patrons achieved by
commissary stores prior to the initiation of the variable
pricing program, based on a comparison of prices charged by
those stores on a regional basis with prices charged by relevant
local competitors for a representative market basket of goods.

``(3) The Secretary shall ensure that the defense commissary system
implements the variable pricing program by conducting price comparisons
using the methodology established for paragraph (2)(B) and adjusting
pricing as necessary to ensure that pricing in the variable pricing
program achieves overall savings to patrons that are consistent with the
baseline savings established for the relevant region pursuant to such
paragraph.
``(j) Conversion to Nonappropriated Fund Entity or
Instrumentality.--(1) Subject to subsection (k), if the Secretary of
Defense determines that the variable pricing program has met the
benchmarks for success established pursuant to paragraph (2)(A) of
subsection (i) and the savings requirements established pursuant to
paragraph (3) of such subsection over a period of at least six months,
the Secretary may convert the defense commissary system to a
nonappropriated fund entity or instrumentality, with operating expenses
financed in whole or in part by receipts from the sale of products and
the sale of services. Upon such conversion, appropriated funds shall be
transferred to the defense commissary system only in accordance with
paragraph (2) or section 2491 of this title. The requirements of section
2483 of this title shall not apply to the defense commissary system
operating as a nonappropriated fund entity or instrumentality.
``(2) If the Secretary determines that the defense commissary system
operating as a nonappropriated fund entity or instrumentality is likely
to incur a loss in any fiscal year as a result of compliance with the
savings requirement established in subsection (i), the Secretary shall
authorize a transfer of appropriated funds available for such purpose to
the commissary system in an amount sufficient to offset the anticipated
loss. Any funds so transferred shall be considered to be nonappropriated
funds for such purpose.
``(3)(A) The Secretary may identify positions of employees in the
defense commissary system who are paid with appropriated

[[Page 2171]]

funds whose status may be converted to the status of an employee of a
nonappropriated fund entity or instrumentality.
``(B) The status and conversion of employees in a position
identified by the Secretary under subparagraph (A) shall be addressed as
provided in section 2491(c) of this title for employees in morale,
welfare, and recreation programs, including with respect to requiring
the consent of such employee to be so converted.
``(C) No individual who is an employee of the defense commissary
system as of the date of the enactment of this subsection shall suffer
any loss of or decrease in pay as a result of a conversion made under
this paragraph.
``(k) Oversight Required To Ensure Continued Benefit to Patrons.--
(1) With respect to each action described in paragraph (2), the
Secretary of Defense may not carry out such action until--
``(A) the Secretary provides to the congressional defense
committees a briefing on such action, including a justification
for such action; and
``(B) a period of 30 days has elapsed following such
briefing.

``(2) The actions described in this paragraph are the following:
``(A) Establishing the representative market basket of goods
pursuant to subsection (i)(2)(B).
``(B) Establishing the variable pricing program under
subsection (i)(1).
``(C) Converting the defense commissary system to a
nonappropriated fund entity or instrumentality under subsection
(j)(1).''.

(d) Establishment of Common Business Practices.--Section 2487 of
such title is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection (c):

``(c) Common Business Practices.--(1) Notwithstanding subsections
(a) and (b), the Secretary of Defense may establish common business
processes, practices, and systems--
``(A) to exploit synergies between the defense commissary
system and the exchange system; and
``(B) to optimize the operations of the defense retail
systems as a whole and the benefits provided by the commissaries
and exchanges.

``(2) The Secretary may authorize the defense commissary system and
the exchange system to enter into contracts or other agreements--
``(A) for products and services that are shared by the
defense commissary system and the exchange system; and
``(B) for the acquisition of supplies, resale goods, and
services on behalf of both the defense commissary system and the
exchange system.

``(3) For the purpose of a contract or agreement authorized under
paragraph (2), the Secretary may--
``(A) use funds appropriated pursuant to section 2483 of
this title to reimburse a nonappropriated fund entity or
instrumentality for the portion of the cost of a contract or
agreement entered by the nonappropriated fund entity or
instrumentality that is attributable to the defense commissary
system; and
``(B) authorize the defense commissary system to accept
reimbursement from a nonappropriated fund entity or

[[Page 2172]]

instrumentality for the portion of the cost of a contract or
agreement entered by the defense commissary system that is
attributable to the nonappropriated fund entity or
instrumentality.''.

(e) Authority for Expert Commercial Advice.--Section 2485 of such
title is amended by adding at the end the following new subsection:
``(i) Expert Commercial Advice.--The Secretary of Defense may enter
into a contract with an entity to obtain expert commercial advice,
commercial assistance, or other similar services not otherwise carried
out by the Defense Commissary Agency, to implement section 2481(c),
subsections (i) and (j) of section 2484, and section 2487(c) of this
title.''.
(f)  Clarification of References to ``the Exchange System''.--
Section 2481(a) of such title is amended by adding at the end the
following new sentence: `` Any reference in this chapter to `the
exchange system' shall be treated as referring to each separate
administrative entity within the Department of Defense through which the
Secretary has implemented the requirement under this subsection for a
world-wide system of exchange stores.''.
(g) <>  Operation of Defense Commissary
System as a Nonappropriated Fund Entity.--In the event that the defense
commissary system is converted to a nonappropriated fund entity or
instrumentality as authorized by section 2484(j)(1) of title 10, United
States Code, as added by subsection (c) of this section, the Secretary
of Defense may--
(1) provide for the transfer of commissary assets, including
inventory and available funds, to the nonappropriated fund
entity or instrumentality; and
(2) ensure that revenues accruing to the defense commissary
system are appropriately credited to the nonappropriated fund
entity or instrumentality.

(h) Conforming Change.--Section 2643(b) of such title is amended by
adding at the end the following new sentence: ``Such appropriated funds
may be supplemented with additional funds derived from improved
management practices implemented pursuant to sections 2481(c)(3) and
2487(c) of this title.''.
SEC. 662. <>  ACCEPTANCE OF MILITARY STAR
CARD AT COMMISSARIES.

(a) In General.--The Secretary of Defense shall ensure that--
(1) commissary stores accept as payment the Military Star
Card; and
(2) any financial liability of the United States relating to
such acceptance as payment be assumed by the Army and Air Force
Exchange Service.

(b) Military Star Card Defined.--In this section, the term
``Military Star Card'' means a credit card administered under the
Exchange Credit Program by the Army and Air Force Exchange Service.

[[Page 2173]]

Subtitle F--Other Matters

SEC. 671. RECOVERY OF AMOUNTS OWED TO THE UNITED STATES BY MEMBERS
OF THE UNIFORMED SERVICES.

(a) Statute of Limitations.--Section 1007(c)(3) of title 37, United
States Code, is amended by adding at the end the following new
subparagraphs:
``(C)(i) In accordance with clause (ii), if the indebtedness of a
member of the uniformed services to the United States occurs, through no
fault of the member, as a result of the overpayment of pay or allowances
to the member or upon the settlement of the member's accounts, the
Secretary concerned may not recover the indebtedness from the member,
including a retired or former member, using deductions from the pay of
the member, deductions from retired or separation pay, or any other
collection method unless recovery of the indebtedness commences before
the end of the 10-year period beginning on the date on which the
indebtedness was incurred.
``(ii) Clause (i) applies with respect to indebtedness incurred on
or after the date of the enactment of the National Defense Authorization
Act for Fiscal Year 2017.
``(D)(i) Not later than January 1 of each of 2017 through 2027, the
Director of the Defense Finance and Accounting Service shall review all
cases occurring during the 10-year period prior to the date of the
review of indebtedness of a member of the uniformed services, including
a retired or former member, to the United States in which--
``(I) the recovery of the indebtedness commenced after the
end of the 10-year period beginning on the date on which the
indebtedness was incurred; or
``(II) the Director did not otherwise notify the member of
such indebtedness during such 10-year period.

``(ii) The Director shall submit to the congressional defense
committees and the Committees on Veterans' Affairs of the House of
Representatives and the Senate each review conducted under clause (i),
including the amounts owed to the United States by the members included
in such review.''.
(b) Remission or Cancellation of Indebtedness of Reserves Not on
Active Duty.--
(1) Army.--Section 4837(a) of title 10, United States Code,
is amended by striking ``on active duty as a member of the
Army'' and inserting ``as a member of the Army, whether as a
regular or a reserve in active status''.
(2) Navy.--Section 6161(a) of such title is amended by
striking ``on active duty as a member of the naval service'' and
inserting ``as a member of the naval service, whether as a
regular or a reserve in active status''.
(3) Air force.--Section 9837(a) of such title is amended by
striking ``on active duty as a member of the Air Force'' and
inserting ``as a member of the Air Force, whether as a regular
or a reserve in active status''.
(4) Coast guard.--Section 461(1) of title 14, United States
Code, is amended by striking ``on active duty as a member of the
Coast Guard'' and inserting ``as a member of the Coast Guard,
whether as a regular or a reserve in active status''.

[[Page 2174]]

(5) <>  Effective date.--The
amendments made by this subsection shall take effect on the date
of the enactment of this Act, and shall apply with respect to
debt incurred on or after October 7, 2001.

(c) Benefits Paid to Members of California National Guard.--
(1) Review of certain benefits paid.--
(A) In general.--The Secretary of Defense shall
conduct a review of all bonus pays, special pays,
student loan repayments, and similar special payments
that were paid to members of the National Guard of the
State of California during the period beginning on
January 1, 2004, and ending on December 31, 2015.
(B) Exception.--A review is not required under this
paragraph for benefits paid as described in subparagraph
(A) that were reviewed before the date of the enactment
of this Act and in which fraud or other ineligibility
was identified in connection with payment.
(C) Conduct of review.--The Secretary shall
establish a process to expedite the review required by
this paragraph. The Secretary shall allocate appropriate
personnel and other resources of the Department of
Defense for the process, and for such other purposes as
the Secretary considers appropriate, in order to achieve
the completion of the review by the date specified in
subparagraph (D).
(D) Completion.--The review required by this
paragraph shall be completed by not later than July 30,
2017.
(2) Review.--
(A) In general.--In conducting the review of
benefits paid to members of the National Guard of the
State of California pursuant to paragraph (1), the board
of review concerned shall--
(i) carry out a complete review of all bonus
pay and special pay contracts awarded to such
members during the period described in paragraph
(1)(A) for which the Department has reason to
believe a recoupment of pay may be warranted in
order to determine whether such members were
eligible for the contracts so awarded and whether
the contracts so awarded accurately specified the
amounts of pay for which members were eligible;
(ii) carry out a complete review of all
student loan repayment contracts awarded to such
members during the period for which the Department
has reason to believe a recoupment of payment may
be warranted in order to determine whether such
members were eligible for the contracts so awarded
and whether the contracts so awarded accurately
specified the amounts of payment for which members
were eligible;
(iii) carry out a complete review of any other
similar special payments paid to such members
during the period for which the Department has
reason to believe a recoupment of payments may be
warranted in order to determine whether such
members were eligible for payment and in such
amount;
(iv) if any member is determined not to have
been eligible for a bonus pay, special pay,
student loan

[[Page 2175]]

repayment, or other special payment paid,
determine whether waiver of recoupment is
warranted; and
(v) if any bonus pay, special pay, student
loan repayment, or other special payment paid to
any such member during the period has been
recouped, determine whether the recoupment was
unwarranted.
(B) Waiver of recoupment.--For purposes of clause
(iv) of subparagraph (A), the board of review shall
determine that waiver of recoupment is warranted with
respect to a particular member unless the board makes an
affirmative determination, by a preponderance of the
evidence, that the member knew or reasonably should have
known that the member was ineligible for the bonus pay,
special pay, student loan repayment, or other special
payment otherwise subject to recoupment.
(C) Propriety of recoupment.--For purposes of clause
(v) of subparagraph (A), the board of review shall
determine that recoupment was unwarranted with respect
to a particular member unless the board makes an
affirmative determination, by a preponderance of the
evidence, that the member knew or reasonably should have
known that the member was ineligible for the bonus pay,
special pay, student loan repayment, or other special
payment recouped.
(D) Standard of review.--In applying subparagraph
(B) or (C) in making a determination under clause (iv)
or (v) of subparagraph (A), as applicable, with respect
to a member, the board of review shall evaluate the
evidence in a light most favorable to the member.
(3) Participation of members.--
(A) In general.--A member subject to a determination
under clause (iv) or (v) of paragraph (2)(A) may submit
to the board of review concerned such documentary and
other evidence as the member considers appropriate to
assist the board of review in the determination.
(B) Notice.--The Secretary shall notify, in writing,
each member subject to a determination under clause (iv)
or (v) of paragraph (2)(A) of the review under paragraph
(1) and the applicability of the determination process
under such clause to such member. The notice shall be
provided at a time designed to give each member a
reasonable opportunity to submit documentary and other
evidence as authorized by subparagraph (A). The notice
shall provide each member the following:
(i) Notice of the opportunity for such member
to submit evidence to assist the board of review.
(ii) A description of resources available to
such member to submit such evidence.
(C) Consideration.--In making a determination under
clause (iv) or (v) of paragraph (2)(A) with respect to a
member, the board of review shall undertake a
comprehensive review of any submissions made by the
member pursuant to this paragraph.
(4) Actions following review.--
(A) Waiver of recoupment.--Upon completion of a
review pursuant to paragraph (2)(A)(iv) with respect to
a member--

[[Page 2176]]

(i) the board of review shall submit to the
Secretary concerned a notice setting forth--
(I) the determination of the board
pursuant to that paragraph with respect
to the member; and
(II) the recommendation of the board
whether or not the recoupment of the
bonus pay, special pay, student loan
repayment, or other special payment
covered by the determination should be
waived; and
(ii) the Secretary may waive recoupment of the
pay, repayment, or other payment from the member.
(B) Repayment of amount recouped.--Upon completion
of a review pursuant to paragraph (2)(A)(v) with respect
to a member--
(i) the board of review shall submit to the
Secretary concerned a notice setting forth--
(I) the determination of the board
pursuant to that paragraph with respect
to the member; and
(II) the recommendation of the board
whether or not the recouped bonus pay,
special pay, student loan repayment, or
other special payment covered by the
determination should be repaid the
member; and
(ii) the Secretary may repay the member the
amount so recouped.
(C) Consumer credit and related matters.--If the
Secretary concerned waives recoupment of a bonus pay,
special pay, student loan repayment, or other special
payment paid a member pursuant to paragraph (4)(A)(ii),
or repays a member an amount of a bonus pay, special
pay, student loan repayment, or other special payment
recouped pursuant to paragraph (4)(B)(ii), the Secretary
shall--
(i) in the event the Secretary had previously
notified a consumer reporting agency of the
existence of the debt subject to the relief
granted the member pursuant to this paragraph,
notify such consumer reporting agency that such
debt was never valid; and
(ii) if the member is experiencing or has
experienced financial hardship as a result of the
actions of the United States to obtain recoupment
of such debt, assist the member, to the extent
practicable, in addressing such financial hardship
in accordance with such mechanisms as the
Secretary shall develop for purposes of this
clause.
(D) Effect of consumer credit notification.--A
consumer reporting agency notified of the invalidity of
a debt pursuant to subparagraph (C)(i) may not, after
the date of the notice, make any consumer report
containing any information relating to the debt.
(E) Definitions.--In this paragraph, the terms
``consumer reporting agency'' and ``consumer report''
have the meaning given such terms in section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a).
(5) Funding.--Amounts for activities under this subsection,
including for the conduct of the review required by paragraph

[[Page 2177]]

(1), for activities in connection with the review, for
repayments pursuant to paragraph (4)(B), and for activities
under paragraph (4)(C), shall be derived from amounts available
for the National Guard of the United States for the State of
California.
(6) Secretary of defense report.--
(A) In general.--Not later than August 1, 2017, the
Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of
Representatives a report on the review conducted
pursuant to paragraph (1).
(B) Elements.--The report under this paragraph shall
include the following:
(i) The total amount of bonus pays, special
pays, student loan repayments, and other special
pays paid to members of the National Guard of the
State of California during the period beginning on
September 1, 2001, and ending on December 31,
2015.
(ii) The number of bonus pay and special pay
contracts reviewed pursuant to paragraph
(2)(A)(i), and the amounts of such pays paid under
each such contract.
(iii) The number of student loan repayment
contracts reviewed pursuant to paragraph
(2)(A)(ii), and the amounts of such payments made
pursuant to each such contract.
(iv) The number of other special pay payments
reviewed pursuant to paragraph (2)(A)(iii), and
the amounts of such payments made to each
particular member so paid.
(v) The number of bonus pay and special pay
contracts, student loan repayments, and other
special pay payments that were determined pursuant
to the review to be paid in error, and the total
amount, if any, recouped from each member
concerned.
(vi) Any additional fraud or other
ineligibility identified in the course of the
review in the payment of bonus pays, special pays,
student loan repayments, and other special pays
paid to the members of the National Guard of the
State of California during the period beginning on
September 1, 2001, and ending on December 31,
2015.
(7) Comptroller general report.--
(A) In general.--Not later than one year after the
date of the enactment of this Act, the Comptroller
General of the United States shall submit to the
Committees on Armed Services of the Senate and the House
of Representatives a report on the actions of the
National Guard of the State of California relating to
the payment of bonus pays, special pays, student loan
repayments, and other special pays from 2004 through
2015.
(B) Elements.--The report under this paragraph shall
include the following:
(i) An assessment whether the National Guard
of the State of California and the National Guard
Bureau have established policies and procedures
that will minimize the chance of improper payment
of such

[[Page 2178]]

pays and repayments and of managerial abuse in the
payment of such pays and repayments.
(ii) An assessment whether the procedures,
processes, and resources of the Defense Finance
and Accounting Service and the Defense Office of
Hearings and Appeals were appropriate to identify
and respond to fraud or other ineligibility in
connection with the payment of such pays and
repayments, and to do so in a timely manner.
(iii) Any recommendations the Comptroller
General considers appropriate to streamline the
procedures and processes for the waiver of
recoupment of the payment of such pays and
repayments by the United States when recoupment is
unwarranted.
SEC. 672. <>  MODIFICATION OF FLAT RATE
PER DIEM REQUIREMENT FOR PERSONNEL ON
LONG-TERM TEMPORARY DUTY ASSIGNMENTS.

(a) Modification of Flat Rate.--
(1) In general.--The Secretary of Defense shall take such
action as may be necessary to provide that, to the extent that
regulations implementing travel and transportation authorities
for military and civilian personnel of the Department of Defense
impose a flat rate per diem for meals and incidental expenses
for authorized travelers on long-term temporary duty assignments
that is at a reduced rate compared to the per diem rate
otherwise applicable, the Secretary concerned may waive the
applicability of such reduced rate and pay such travelers actual
expenses up to the full per diem rate for such travel in any
case when the Secretary concerned determines that the reduced
flat rate per diem for meals and incidental expenses is not
sufficient under the circumstances of the temporary duty
assignment.
(2) Applicability.--The Secretary concerned may exercise the
authority provided pursuant to paragraph (1) with respect to per
diem payable for any day on or after the date of the enactment
of this Act.

(b) Delegation of Authority.--The authority pursuant to subsection
(a) may be delegated by the Secretary concerned to an officer at the
level of lieutenant general or vice admiral, or above. Such authority
may not be delegated to an officer below that level.
(c) Waiver of Collection of Receipts.--The Secretary concerned or an
officer to whom the authority pursuant to subsection (a) is delegated
pursuant to subsection (b) may waive any requirement for the submittal
of receipts by travelers on long-term temporary duty assignments for the
purpose of receiving the full per diem rate pursuant to subsection (a)
if the Secretary concerned or officer, as described in subsection (b),
personally certifies that requiring travelers to submit receipts for
that purpose will negatively affect mission performance or create an
undue administrative burden.
(d) Secretary Concerned Defined.--In this section, the term
``Secretary concerned'' has the meaning given that term in section 101
of title 37, United States Code.

[[Page 2179]]

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Reform of TRICARE and Military Health System

Sec. 701. TRICARE Select and other TRICARE reform.
Sec. 702. Reform of administration of the Defense Health Agency and
military medical treatment facilities.
Sec. 703. Military medical treatment facilities.
Sec. 704. Access to urgent and primary care under TRICARE program.
Sec. 705. Value-based purchasing and acquisition of managed care support
contracts for TRICARE program.
Sec. 706. Establishment of high performance military-civilian integrated
health delivery systems.
Sec. 707. Joint Trauma System.
Sec. 708. Joint Trauma Education and Training Directorate.
Sec. 709. Standardized system for scheduling medical appointments at
military treatment facilities.

Subtitle B--Other Health Care Benefits

Sec. 711. Extended TRICARE program coverage for certain members of the
National Guard and dependents during certain disaster
response duty.
Sec. 712. Continuity of health care coverage for Reserve Components.
Sec. 713. Provision of hearing aids to dependents of retired members.
Sec. 714. Coverage of medically necessary food and vitamins for certain
conditions under the TRICARE program.
Sec. 715. Eligibility of certain beneficiaries under the TRICARE program
for participation in the Federal Employees Dental and Vision
Insurance Program.
Sec. 716. Applied behavior analysis.
Sec. 717. Evaluation and treatment of veterans and civilians at military
treatment facilities.
Sec. 718. Enhancement of use of telehealth services in military health
system.
Sec. 719. Authorization of reimbursement by Department of Defense to
entities carrying out State vaccination programs for costs of
vaccines provided to covered beneficiaries.

Subtitle C--Health Care Administration

Sec. 721. Authority to convert military medical and dental positions to
civilian medical and dental positions.
Sec. 722. Prospective payment of funds necessary to provide medical care
for the Coast Guard.
Sec. 723. Reduction of administrative requirements relating to automatic
renewal of enrollments in TRICARE Prime.
Sec. 724. Modification of authority of Uniformed Services University of
the Health Sciences to include undergraduate and other
medical education and training programs.
Sec. 725. Adjustment of medical services, personnel authorized
strengths, and infrastructure in military health system to
maintain readiness and core competencies of health care
providers.
Sec. 726. Program to eliminate variability in health outcomes and
improve quality of health care services delivered in military
medical treatment facilities.
Sec. 727. Acquisition strategy for health care professional staffing
services.
Sec. 728. Adoption of core quality performance metrics.
Sec. 729. Improvement of health outcomes and control of costs of health
care under TRICARE program through programs to involve
covered beneficiaries.
Sec. 730. Accountability for the performance of the military health
system of certain leaders within the system.
Sec. 731. Establishment of advisory committees for military treatment
facilities.

Subtitle D--Reports and Other Matters

Sec. 741. Extension of authority for joint Department of Defense-
Department of Veterans Affairs Medical Facility Demonstration
Fund and report on implementation of information technology
capabilities.
Sec. 742. Pilot program on expansion of use of physician assistants to
provide mental health care to members of the Armed Forces.
Sec. 743. Pilot program for prescription drug acquisition cost parity in
the TRICARE pharmacy benefits program.
Sec. 744. Pilot program on display of wait times at urgent care clinics
and pharmacies of military medical treatment facilities.
Sec. 745. Requirement to review and monitor prescribing practices at
military treatment facilities of pharmaceutical agents for
treatment of post-traumatic stress.

[[Page 2180]]

Sec. 746. Department of Defense study on preventing the diversion of
opioid medications.
Sec. 747. Incorporation into survey by Department of Defense of
questions on experiences of members of the Armed Forces with
family planning services and counseling.
Sec. 748. Assessment of transition to TRICARE program by families of
members of reserve components called to active duty and
elimination of certain charges for such families.
Sec. 749. Oversight of graduate medical education programs of military
departments.
Sec. 750. Study on health of helicopter and tiltrotor pilots.
Sec. 751. Comptroller General reports on health care delivery and waste
in military health system.

Subtitle A--Reform of TRICARE and Military Health System

SEC. 701. TRICARE SELECT AND OTHER TRICARE REFORM.

(a) Establishment of TRICARE Select.--
(1) In general.--Chapter 55 of title 10, United States Code,
is amended by inserting after section 1074n the following new
section:
``Sec. 1075. <>  TRICARE Select

``(a) Establishment.--(1) Not later than January 1, 2018, the
Secretary of Defense shall establish a self-managed, preferred-provider
network option under the TRICARE program. Such option shall be known as
`TRICARE Select'.
``(2) The Secretary shall establish TRICARE Select in all areas.
Under TRICARE Select, eligible beneficiaries will not have restrictions
on the freedom of choice of the beneficiary with respect to health care
providers.
``(b) Enrollment Eligibility.--(1) The beneficiary categories for
purposes of eligibility to enroll in TRICARE Select and cost-sharing
requirements applicable to such category are as follows:
``(A) An `active-duty family member' category that consists
of beneficiaries who are covered by section 1079 of this title
(as dependents of active duty members).
``(B) A `retired' category that consists of beneficiaries
covered by subsection (c) of section 1086 of this title, other
than Medicare-eligible beneficiaries described in subsection
(d)(2) of such section.
``(C) A `reserve and young adult' category that consists of
beneficiaries who are covered by--
``(i) section 1076d of this title;
``(ii) section 1076e; or
``(iii) section 1110b.

``(2) A covered beneficiary who elects to participate in TRICARE
Select shall enroll in such option under section 1099 of this title.
``(c) Cost-sharing Requirements.--The cost-sharing requirements
under TRICARE Select are as follows:
``(1) With respect to beneficiaries in the active-duty
family member category or the retired category by reason of
being a member or former member of the uniformed services who
originally enlists or is appointed in the uniformed services on
or after January 1, 2018, or by reason of being a dependent of
such a member, the cost-sharing requirements shall be calculated
pursuant to subsection (d)(1).

[[Page 2181]]

``(2)(A) Except as provided by subsection (e), with respect
to beneficiaries described in subparagraph (B) in the active-
duty family member category or the retired category, the cost-
sharing requirements shall be calculated as if the beneficiary
were enrolled in TRICARE Extra or TRICARE Standard as if TRICARE
Extra or TRICARE Standard, as the case may be, were still being
carried out by the Secretary.
``(B) Beneficiaries described in this subparagraph are
beneficiaries who are eligible to enroll in the TRICARE program
by reason of being a member or former member of the uniformed
services who originally enlists or is appointed in the uniformed
services before January 1, 2018, or by reason of being a
dependent of such a member.
``(3) With respect to beneficiaries in the reserve and young
adult category, the cost-sharing requirements shall be
calculated pursuant to subsection (d)(1) as if the beneficiary
were in the active-duty family member category or the retired
category, as applicable, except that the premiums calculated
pursuant to section 1076d, 1076e, or 1110b of this title, as the
case may be, shall apply instead of any enrollment fee required
under this section.

``(d) Cost-sharing Amounts for Certain Beneficiaries.--(1)
Beneficiaries described in subsection (c)(1) enrolled in TRICARE Select
shall be subject to cost-sharing requirements in accordance with the
amounts and percentages under the following table during calendar year
2018 and as such amounts are adjusted under paragraph (2) for subsequent
years:


----------------------------------------------------------------------------------------------------------------
Active-Duty Family Member   (Individual/
``TRICARE Select                      Family)                             Retired   (Individual/Family)
----------------------------------------------------------------------------------------------------------------
Annual Enrollment   $0                                             $450 / $900
----------------------------------------------------------------------------------------------------------------
Annual deductible               E4 & below: $50 / $100             $150 / $300 Network
E5 & above: $150 / $300             $300 / $600 out of network
----------------------------------------------------------------------------------------------------------------
Annual   $1,000                                         $3,500
catastrophic cap
----------------------------------------------------------------------------------------------------------------
Outpatient visit   $15 primary care                               $25 primary care
civilian network
$25 specialty care                             $40 specialty care
.............................................  .............................................
Out of network: 20%                            25% of out of network
----------------------------------------------------------------------------------------------------------------
ER visit civilian   $40 network                                    $80 network
network
20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Urgent care   $20 network                                    $40 network
civilian network

[[Page 2182]]


20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Ambulatory surgery  $25 network                                    $95 network
civilian network
20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Ambulance civilian  $15                                            $60
network
----------------------------------------------------------------------------------------------------------------
Durable medical   10% of negotiated fee                          20% network
equipment
civilian network
----------------------------------------------------------------------------------------------------------------
Inpatient visit   $60 per network admission                      $175 per admission network
civilian network
.............................................  .............................................
20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Inpatient skilled   $25 per day network                            $50 per day network
nursing/rehab
civilian
$50 per day out of network                     Lesser of $300 per day or 20% of billed
charges out of network
----------------------------------------------------------------------------------------------------------------


``(2) Each dollar amount expressed as a fixed dollar amount in the
table set forth in paragraph (1), and the amounts specified under
paragraphs (1) and (2) of subsection (e), shall be annually indexed to
the amount by which retired pay is increased under section 1401a of this
title, rounded to the next lower multiple of $1. The remaining amount
above such multiple of $1 shall be carried over to, and accumulated
with, the amount of the increase for the subsequent year or years and
made when the aggregate amount of increases carried over under this
clause for a year is $1 or more.
``(3) Enrollment fees, deductible amounts, and catastrophic caps
under this section are on a calendar-year basis.
``(e) Exceptions to Certain Cost-sharing Amounts for Certain
Beneficiaries Eligible Prior to 2018.--(1) Subject to paragraph (4), and
in accordance with subsection (d)(2), the Secretary shall establish an
annual enrollment fee for beneficiaries described in subsection
(c)(2)(B) in the retired category who enroll in TRICARE Select (other
than such beneficiaries covered by paragraph (3)). Such enrollment fee
shall be $150 for an individual and $300 for a family.
``(2) For the calendar year for which the Secretary first
establishes the annual enrollment fee under paragraph (1), the Secretary
shall adjust the catastrophic cap amount to be $3,500 for beneficiaries
described in subsection (c)(2)(B) in the retired category

[[Page 2183]]

who are enrolled in TRICARE Select (other than such beneficiaries
covered by paragraph (3)).
``(3) The enrollment fee established pursuant to paragraph (1) and
the catastrophic cap adjusted under paragraph (2) for beneficiaries
described in subsection (c)(2)(B) in the retired category shall not
apply with respect to the following beneficiaries:
``(A) Retired members and the family members of such members
covered by paragraph (1) of section 1086(c) of this title by
reason of being retired under chapter 61 of this title or being
a dependent of such a member.
``(B) Survivors covered by paragraph (2) of such section
1086(c).

``(4) The Secretary may not establish an annual enrollment fee under
paragraph (1) until 90 days has elapsed following the date on which the
Comptroller General of the United States is required to submit the
review under paragraph (5).
``(5) Not later than February 1, 2020, the Comptroller General of
the United States shall submit to the Committees on Armed Services of
the House of Representatives and the Senate a review of the following:
``(A) Whether health care coverage for covered beneficiaries
has changed since the enactment of this section.
``(B) Whether covered beneficiaries are able to obtain
appointments for health care according to the access standards
established by the Secretary of Defense.
``(C) The percent of network providers that accept new
patients under the TRICARE program.
``(D) The satisfaction of beneficiaries under TRICARE
Select.

``(f) Exception to Cost-sharing Requirements for TRICARE for Life
Beneficiaries.--A beneficiary enrolled in TRICARE for Life is subject to
cost-sharing requirements pursuant to section 1086(d)(3) of this title
and calculated as if the beneficiary were enrolled in TRICARE Standard
as if TRICARE Standard were still being carried out by the Secretary.
``(g) Construction.--Nothing in this section may be construed as
affecting the availability of TRICARE Prime and TRICARE for Life or the
cost-sharing requirements for TRICARE for Life under section 1086(d)(3)
of this title.
``(h) Definitions.--In this section:
``(1) The terms `active-duty family member category',
`retired category', and `reserve and young adult category' mean
the respective categories of TRICARE Select enrollment described
in subsection (b).
``(2) The term `network' means--
``(A) with respect to health care services, such
services provided to beneficiaries by TRICARE-authorized
civilian health care providers who have entered into a
contract under this chapter with a contractor under the
TRICARE program; and
``(B) with respect to providers, civilian health
care providers who have agreed to accept a pre-
negotiated rate as the total charge for services
provided by the provider and to file claims for
beneficiaries.
``(3) The term `out-of-network' means, with respect to
health care services, such services provided by TRICARE-
authorized

[[Page 2184]]

civilian providers who have not entered into a contract under
this chapter with a contractor under the TRICARE program.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 55 of title 10, <> United States Code, is amended by inserting after the
item relating to section 1074n, the following new item:

``1075. TRICARE Select.''.

(b) TRICARE Prime Cost Sharing.--
(1) In general.--Chapter 55 of title 10, United States Code,
is amended by inserting after section 1075, as added by
subsection (a), the following new section:
``Sec. 1075a. <>  TRICARE Prime: cost sharing

``(a) Cost-sharing Requirements.--The cost-sharing requirements
under TRICARE Prime are as follows:
``(1) There are no cost-sharing requirements for
beneficiaries who are covered by section 1074(a) of this title.
``(2) With respect to beneficiaries in the active-duty
family member category or the retired category (as described in
section 1075(b)(1) of this title) by reason of being a member or
former member of the uniformed services who originally enlists
or is appointed in the uniformed services on or after January 1,
2018, or by reason of being a dependent of such a member, the
cost-sharing requirements shall be calculated pursuant to
subsection (b)(1).
``(3)(A) With respect to beneficiaries described in
subparagraph (B) in the active-duty family member category or
the retired category (as described in section 1075(b)(1) of this
title), the cost-sharing requirements shall be calculated in
accordance with the other provisions of this chapter without
regard to subsection (b).
``(B) Beneficiaries described in this subparagraph are
beneficiaries who are eligible to enroll in the TRICARE program
by reason of being a member or former member of the uniformed
services who originally enlists or is appointed in the uniformed
services before January 1, 2018, or by reason of being a
dependent of such a member.

``(b) Cost-sharing Amounts.--(1) Beneficiaries described in
subsection (a)(2) enrolled in TRICARE Prime shall be subject to cost-
sharing requirements in accordance with the amounts and percentages
under the following table during calendar year 2018 and as such amounts
are adjusted under paragraph (2) for subsequent years:


----------------------------------------------------------------------------------------------------------------
Active-Duty Family Member   (Individual/
``TRICARE Prime                      Family)                             Retired   (Individual/Family)
----------------------------------------------------------------------------------------------------------------
Annual Enrollment   $0                                             $350 / $700
----------------------------------------------------------------------------------------------------------------
Annual deductible   No                                             No
----------------------------------------------------------------------------------------------------------------

[[Page 2185]]


Annual   $1,000                                         $3,500
catastrophic cap
----------------------------------------------------------------------------------------------------------------
Outpatient visit   $0                                             $20 primary care
civilian network
----------------------------------------------
.............................................  $30 specialty care
----------------------------------------------------------------------------------------------------------------
ER visit civilian   $0                                             $60 network
network
----------------------------------------------------------------------------------------------------------------
Urgent care   $0                                             $30 network
civilian network
----------------------------------------------------------------------------------------------------------------
Ambulatory surgery  $0                                             $60 network
civilian network
----------------------------------------------------------------------------------------------------------------
Ambulance civilian  $0                                             $40
network
----------------------------------------------------------------------------------------------------------------
Durable medical   $0                                             20% of negotiated fee, network
equipment
civilian network
----------------------------------------------------------------------------------------------------------------
Inpatient visit   $0                                             $150 per admission
civilian network
----------------------------------------------------------------------------------------------------------------
Inpatient skilled   $0                                             $30 per day network
nursing/rehab
civilian
----------------------------------------------------------------------------------------------------------------


``(2) Each dollar amount expressed as a fixed dollar amount in the
table set forth in paragraph (1) shall be annually indexed to the amount
by which retired pay is increased under section 1401a of this title,
rounded to the next lower multiple of $1. The remaining amount above
such multiple of $1 shall be carried over to, and accumulated with, the
amount of the increase for the subsequent year or years and made when
the aggregate amount of increases carried over under this clause for a
year is $1 or more.
``(3) Enrollment fees, deductible amounts, and catastrophic caps
under this section are on a calendar-year basis.
``(c) Special Rule for Amounts Without Referrals.--Notwithstanding
subsection (b)(1), the cost-sharing amount for a beneficiary enrolled in
TRICARE Prime who does not obtain a referral for care under paragraph
(1) of section 1075f(a) of this title (or a waiver pursuant to paragraph
(2) of such section for such care) shall be an amount equal to 50
percent of the allowed point-of-service charge for such care.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 55 of title 10, <> United States Code, is

[[Page 2186]]

amended by inserting after the item relating to section 1075, as
added by subsection (a), the following new item:

``1075a. TRICARE Prime: cost sharing.''.

(c) Referrals and Preauthorization for TRICARE Prime.--Section 1095f
of title 10, United States Code, is amended to read as follows:
``Sec. 1095f. TRICARE program: referrals and preauthorizations
under TRICARE Prime

``(a) Referrals.--(1) Except as provided by paragraph (2), a
beneficiary enrolled in TRICARE Prime shall be required to obtain a
referral for care through a designated primary care manager (or other
care coordinator) prior to obtaining care under the TRICARE program.
``(2) The Secretary may waive the referral requirement in paragraph
(1) in such circumstances as the Secretary may establish for purposes of
this subsection.
``(3) The cost-sharing amounts for a beneficiary enrolled in TRICARE
Prime who does not obtain a referral for care under paragraph (1) (or a
waiver pursuant to paragraph (2) for such care) shall be determined
under section 1075a(c) of this title.
``(b) Preauthorization.--A beneficiary enrolled in TRICARE Prime
shall be required to obtain preauthorization only with respect to a
referral for the following:
``(1) Inpatient hospitalization.
``(2) Inpatient care at a skilled nursing facility.
``(3) Inpatient care at a rehabilitation facility.

``(c) Prohibition Regarding Prior Authorization for Certain
Referrals.--The Secretary of Defense shall ensure that no contract for
managed care support under the TRICARE program includes any requirement
that a managed care support contractor require a primary care or
specialty care provider to obtain prior authorization before referring a
patient to a specialty care provider that is part of the network of
health care providers or institutions of the contractor.''.
(d) Enrollment Periods.--
(1) Annual periods and qualifying events.--Section 1099(b)
of title 10, United States Code, is amended by amending
paragraph (1) to read as follows:
``(1) allow covered beneficiaries to elect to enroll in a
health care plan, or modify a previous election, from eligible
health care plans designated by the Secretary of Defense
during--
``(A) an annual open enrollment period; and
``(B) any period based on a qualifying event
experienced by the beneficiary, as determined
appropriate by the Secretary; or''.
(2) <>  Application.--The Secretary
of Defense shall implement the initial annual open enrollment
period pursuant to section 1099(b)(1) of title 10, United States
Code, as amended by paragraph (1), during 2018.
(3) <>  Grace period during first
year.--
(A) At any time during the one-year period beginning
on the date on which the initial annual open enrollment
period begins pursuant to section 1099(b)(1) of title
10,

[[Page 2187]]

United States Code, as amended by paragraph (1), a
covered beneficiary may make an election, or modify such
an election, described in such section.
(B) If during such one-year period an individual who
is eligible to enroll in the TRICARE program, but does
not elect to enroll in such program, receives health
care services for an episode of care that would be
covered under the TRICARE program if such individual
were enrolled in the TRICARE program, the Secretary--
(i) shall pay the out-of-network fees only for
the first episode of care and inform the
individual of the opportunity to enroll in the
TRICARE program; and
(ii) may not pay any costs relating to any
subsequent episode of care if such individual is
not enrolled in the TRICARE program.
(4) Transition plan.--Not later than March 1, 2017, the
Secretary shall provide to the Committees on Armed Services of
the Senate and the House of Representatives a briefing on the
transition plan of the Department of Defense for implementing an
annual enrollment period for TRICARE Prime and TRICARE Select
pursuant to section 1099(b)(1) of title 10, United States Code,
as amended by paragraph (1). Such plan shall include strategies
to notify each beneficiary of the changes to the TRICARE options
and the changes to the enrollment process.

(e) <>  Termination of TRICARE Standard and
TRICARE Extra.--Beginning on January 1, 2018, the Secretary of Defense
may not carry out TRICARE Standard and TRICARE Extra under the TRICARE
program. The Secretary shall ensure that any individual who is covered
under TRICARE Standard or TRICARE Extra as of December 31, 2017, enrolls
in TRICARE Prime or TRICARE Select, as the case may be, as of January 1,
2018, for the individual to continue coverage under the TRICARE program.

(f) Implementation Plan.--
(1) In general.--Not later than June 1, 2017, the Secretary
of Defense shall submit to the Committees on Armed Services of
the House of Representatives and the Senate an implementation
plan to improve access to health care for TRICARE beneficiaries
pursuant to the amendments made by this section.
(2) Elements.--The plan under paragraph (1) shall--
(A) ensure that at least 85 percent of the
beneficiary population under TRICARE Select is covered
by the network by January 1, 2018;
(B) ensure access standards for appointments for
health care that meet or exceed those of high-performing
health care systems in the United States, as determined
by the Secretary;
(C) establish mechanisms for monitoring compliance
with access standards;
(D) establish health care provider-to-beneficiary
ratios;
(E) monitor on a monthly basis complaints by
beneficiaries with respect to network adequacy and the
availability of health care providers;
(F) establish requirements for mechanisms to monitor
the responses to complaints by beneficiaries;

[[Page 2188]]

(G) establish mechanisms to evaluate the quality
metrics of the network providers established under
section 728;
(H) include any recommendations for legislative
action the Secretary determines necessary to carry out
the plan; and
(I) include any other elements the Secretary
determines appropriate.

(g) GAO Reviews.--
(1) Implementation plan.--Not later than December 1, 2017,
the Comptroller General of the United States shall submit to the
Committees on Armed Services of the House of Representatives and
the Senate a review of the implementation plan of the Secretary
under paragraph (1) of subsection (f), including an assessment
of the adequacy of the plan in meeting the elements specified in
paragraph (2) of such subsection.
(2) Network.--Not later than September 1, 2017, the
Comptroller General shall submit to the Committees on Armed
Services of the House of Representatives and the Senate a review
of the network established under TRICARE Extra, including the
following:
(A) An identification of the percent of
beneficiaries who are covered by the network.
(B) An assessment of the extent to which
beneficiaries are able to obtain appointments under
TRICARE Extra.
(C) The percent of network providers under TRICARE
Extra that accept new patients under the TRICARE
program.
(D) An assessment of the satisfaction of
beneficiaries under TRICARE Extra.

(h) <>  Pilot Program on Incorporation of
Value-based Health Care in Purchased Care Component of TRICARE
Program.--
(1) In general.--Not later than January 1, 2018, the
Secretary of Defense shall carry out a pilot program to
demonstrate and assess the feasibility of incorporating value-
based health care methodology in the purchased care component of
the TRICARE program by reducing copayments or cost shares for
targeted populations of covered beneficiaries in the receipt of
high-value medications and services and the use of high-value
providers under such purchased care component, including by
exempting certain services from deductible requirements.
(2) Requirements.--In carrying out the pilot program under
paragraph (1), the Secretary shall--
(A) identify each high-value medication and service
that is covered under the purchased care component of
the TRICARE program for which a reduction or elimination
of the copayment or cost share for such medication or
service would encourage covered beneficiaries to use the
medication or service;
(B) reduce or eliminate copayments or cost shares
for covered beneficiaries to receive high-value
medications and services;
(C) reduce or eliminate copayments or cost shares
for covered beneficiaries to receive health care
services from high-value providers;

[[Page 2189]]

(D) credit the amount of any reduction or
elimination of a copayment or cost share under
subparagraph (B) or (C) for a covered beneficiary
towards meeting a deductible applicable to the covered
beneficiary in the purchased care component of the
TRICARE program to the same extent as if such reduction
or elimination had not applied; and
(E) develop a process to reimburse high-value
providers at rates higher than those rates for health
care providers that are not high-value providers.
(3) Report on value-based health care methodology.--Not
later than 180 days after the date of the enactment of this Act,
the Secretary shall submit to the Committees on Armed Services
of the Senate and the House of Representatives a report that
includes the following:
(A) A list of each high-value medication and service
identified under paragraph (2)(A) for which the
copayment or cost share amount will be reduced or
eliminated under the pilot program to encourage covered
beneficiaries to use such medications and services
through the purchased care component of the TRICARE
program.
(B) For each high-value medication and service
identified under paragraph (2)(A), the amount of the
copayment or cost share required under the purchased
care component of the TRICARE program and the amount of
any reduction or elimination of such copayment or cost
share pursuant to the pilot program.
(C) A description of a plan to identify and
communicate to covered beneficiaries, through multiple
communication media--
(i) the list of high-value medications and
services described in subparagraph (A); and
(ii) a list of high-value providers.
(D) A description of modifications, if any, to
existing health care contracts that may be required to
implement value-based health care methodology in the
purchased care component of the TRICARE program under
the pilot program and the estimated costs of those
contract modifications.
(4) Comptroller general preliminary review and assessment.--
(A) Not later than March 1, 2021, the Comptroller
General of the United States shall submit to the
Committees on Armed Services of the Senate and the House
of Representatives a review and assessment of the
preliminary results of the pilot program.
(B) The review and assessment required under
subparagraph (A) shall include the following:
(i) An assessment of the extent of the use of
value-based health care methodology in the
purchased care component of the TRICARE program
under the pilot program.
(ii) An analysis demonstrating how reducing or
eliminating the copayment or cost share for each
high-value medication and service identified under
paragraph (2)(A) resulted in--
(I) increased adherence to
medication regimens;

[[Page 2190]]

(II) improvement of quality
measures;
(III) improvement of health
outcomes;
(IV) reduction of number of
emergency room visits or
hospitalizations; and
(V) enhancement of experience of
care for covered beneficiaries.
(iii) Such recommendations for incentivizing
the use of high-value medications and services to
improve health outcomes and the experience of care
for beneficiaries as the Comptroller General
considers appropriate.
(5) Review and assessment of pilot program.--
(A) Not later than January 1, 2023, the Secretary
shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a review and
assessment of the pilot program.
(B) The review and assessment required under
subparagraph (A) shall include the following:
(i) An assessment of the extent of the use of
value-based health care methodology in the
purchased care component of the TRICARE program
under the pilot program.
(ii) An analysis demonstrating how reducing or
eliminating the copayment or cost share for each
high-value medication and service identified under
paragraph (2)(A) resulted in--
(I) increased adherence to
medication regimens;
(II) improvement of quality
measures;
(III) improvement of health
outcomes; and
(IV) enhancement of experience of
care for covered beneficiaries.
(iii) A cost-benefit analysis of the
implementation of value-based health care
methodology in the purchased care component of the
TRICARE program under the pilot program.
(iv) Such recommendations for incentivizing
the use of high-value medications and services to
improve health outcomes and the experience of care
for covered beneficiaries as the Secretary
considers appropriate.
(6) Termination.--The Secretary may not carry out the pilot
program after December 31, 2022.

(i) <>  Definitions.--In this section:
(1) The terms ``uniformed services'', ``covered
beneficiary'', ``TRICARE Extra'', ``TRICARE for Life'',
``TRICARE Prime'', and ``TRICARE Standard'', have the meaning
given those terms in section 1072 of title 10, United States
Code, as amended by subsection (j).
(2) The term ``TRICARE Select'' means the self-managed,
preferred-provider network option under the TRICARE program
established by section 1075 of such title, as added by
subsection (a).
(3) The term ``chronic conditions'' includes diabetes,
chronic obstructive pulmonary disease, asthma, congestive heart
failure, hypertension, history of stroke, coronary artery
disease, mood disorders, and such other diseases or conditions
as the Secretary considers appropriate.

[[Page 2191]]

(4) The term ``high-value medications and services'' means
prescription medications and clinical services for the
management of chronic conditions that the Secretary determines
would improve health outcomes and create health value for
covered beneficiaries (such as preventive care, primary and
specialty care, diagnostic tests, procedures, and durable
medical equipment).
(5) The term ``high-value provider'' means an individual or
institutional health care provider that provides health care
under the purchased care component of the TRICARE program and
that consistently improves the experience of care, meets
established quality of care and effectiveness metrics, and
reduces the per capita costs of health care.
(6) The term ``value-based health care methodology'' means a
methodology for identifying specific prescription medications
and clinical services provided under the TRICARE program for
which reduction of copayments, cost shares, or both, would
improve the management of specific chronic conditions because of
the high value and clinical effectiveness of such medications
and services for such chronic conditions.

(j) Conforming Amendments.--
(1) In general.--Title 10, United States Code, is amended as
follows:
(A) Section 1072 is amended--
(i) by striking paragraph (7) and inserting
the following:
``(7) The term `TRICARE program' means the various programs
carried out by the Secretary of Defense under this chapter and
any other provision of law providing for the furnishing of
medical and dental care and health benefits to members and
former members of the uniformed services and their dependents,
including the following health plan options:
``(A) TRICARE Prime.
``(B) TRICARE Select.
``(C) TRICARE for Life.''; and
(ii) by adding at the end the following new
paragraphs:
``(11) The term `TRICARE Extra' means the preferred-provider
option of the TRICARE program made available prior to January 1,
2018, under which TRICARE Standard beneficiaries may obtain
discounts on cost sharing as a result of using TRICARE network
providers.
``(12) The term `TRICARE Select' means the self-managed,
preferred-provider network option under the TRICARE program
established by section 1075 of this title.
``(13) The term `TRICARE for Life' means the Medicare
wraparound coverage option of the TRICARE program made available
to the beneficiary by reason of section 1086(d) of this title.
``(14) The term `TRICARE Prime' means the managed care
option of the TRICARE program.
``(15) The term `TRICARE Standard' means the TRICARE program
made available prior to January 1, 2018, covering--
``(A) medical care to which a dependent described in
section 1076(a)(2) of this title is entitled; and
``(B) health benefits contracted for under the
authority of section 1079(a) of this title and subject
to the same

[[Page 2192]]

rates and conditions as apply to persons covered under
that section.''.
(B) Section 1076d is amended--
(i) in subsection (d)(1), by inserting after
``coverage.'' the following: ``Such premium shall
apply instead of any enrollment fees required
under section 1075 of this section.''; and
(ii) in subsection (f), by striking paragraph
(2) and inserting the following new paragraph:
``(2) The term `TRICARE Reserve Select' means the TRICARE
Select self-managed, preferred-provider network option under
section 1075 made available to beneficiaries by reason of this
section and in accordance with subsection (d)(1).''; and
(iii) by striking ``TRICARE Standard'' each
place it appears (including in the heading of such
section) and inserting ``TRICARE Reserve Select''.
(C) Section 1076e is amended--
(i) in subsection (d)(1), by inserting after
``coverage.'' the following: ``Such premium shall
apply instead of any enrollment fees required
under section 1075 of this section.''; and
(ii) in subsection (f), by striking paragraph
(2) and inserting the following new paragraph:
``(2) The term `TRICARE Retired Reserve' means the TRICARE
Select self-managed, preferred-provider network option under
section 1075 made available to beneficiaries by reason of this
section and in accordance with subsection (d)(1).'';
(iii) in subsection (b), by striking ``TRICARE
Standard coverage at'' and inserting ``TRICARE
coverage at''; and
(iv) by striking ``TRICARE Standard'' each
place it appears (including in the heading of such
section) and inserting ``TRICARE Retired
Reserve''.
(D) Section 1079a is amended--
(i) in the section heading, by striking
``CHAMPUS'' and inserting ``TRICARE program''; and
(ii) by striking ``the Civilian Health and
Medical Program of the Uniformed Services'' and
inserting ``the TRICARE program''.
(E) Section 1099(c) is amended by striking paragraph
(2) and inserting the following new paragraph:
``(2) A plan under the TRICARE program.''.
(F) Section 1110b(c)(1) is amended by inserting
after ``(b).'' the following: ``Such premium shall apply
instead of any enrollment fees required under section
1075 of this section.''.
(2) Clerical amendments.--The table of sections at the
beginning of chapter 55 of title 10, <> United States Code, is further amended--
(A) in the item relating to section 1076d, by
striking ``TRICARE Standard'' and inserting ``TRICARE
Reserve Select'';
(B) in the item relating to section 1076e, by
striking ``TRICARE Standard'' and inserting ``TRICARE
Retired Reserve'';

[[Page 2193]]

(C) in the item relating to section 1079a, by
striking ``CHAMPUS'' and inserting ``TRICARE program'';
and
(D) in the item relating to section 1095f, by
striking ``for specialty health care'' and inserting
``and preauthorizations under TRICARE Prime''.
(3) Conforming style.--Any new language inserted or added to
title 10, United States Code, by an amendment made by this
subsection shall conform to the typeface and typestyle of the
matter in which the language is so inserted or added.

(k) <>  Application.--The amendments made
by this section shall apply with respect to the provision of health care
under the TRICARE program beginning on January 1, 2018.
SEC. 702. REFORM OF ADMINISTRATION OF THE DEFENSE HEALTH AGENCY
AND MILITARY MEDICAL TREATMENT FACILITIES.

(a) Administration.--
(1) In general.--Chapter 55 of title 10, United States Code,
is amended by inserting after section 1073b the following new
section:
``Sec. 1073c. <>  Administration of Defense
Health Agency and military medical treatment
facilities

``(a) Administration of Military Medical Treatment Facilities.--(1)
Beginning October 1, 2018, the Director of the Defense Health Agency
shall be responsible for the administration of each military medical
treatment facility, including with respect to--
``(A) budgetary matters;
``(B) information technology;
``(C) health care administration and management;
``(D) administrative policy and procedure;
``(E) miliary medical construction; and
``(F) any other matters the Secretary of Defense determines
appropriate.

``(2) The commander of each military medical treatment facility
shall be responsible for--
``(A) ensuring the readiness of the members of the armed
forces and civilian employees at such facility; and
``(B) furnishing the health care and medical treatment
provided at such facility.

``(3) The Secretary of Defense shall establish within the Defense
Health Agency a professional staff to provide policy, oversight, and
direction to carry out subsection (a). The Secretary shall carry out
this paragraph by appointing the positions specified in subsections (b)
and (c).
``(b) DHA Assistant Director.--(1) There is in the Defense Health
Agency an Assistant Director for Health Care Administration. The
Assistant Director shall--
``(A) be a career appointee within the Department; and
``(B) report directly to the Director of the Defense Health
Agency.

``(2) The Assistant Director shall be appointed from among
individuals who have equivalent education and experience as a chief
executive officer leading a large, civilian health care system.
``(3) The Assistant Director shall be responsible for the following:
``(A) Establishing priorities for health care administration
and management.

[[Page 2194]]

``(B) Establishing policies, procedures, and direction for
the provision of direct care at military medical treatment
facilities.
``(C) Establishing priorities for budgeting matters with
respect to the provision of direct care at military medical
treatment facilities.
``(D) Establishing policies, procedures, and direction for
clinic management and operations at military medical treatment
facilities.
``(E) Establishing priorities for information technology at
and between the military medical treatment facilities.

``(c) DHA Deputy Assistant Directors.--(1)(A) There is in the
Defense Health Agency a Deputy Assistant Director for Information
Operations.
``(B) The Deputy Assistant Director for Information Operations shall
be responsible for policies, management, and execution of information
technology operations at and between the military medical treatment
facilities.
``(2)(A) There is in the Defense Health Agency a Deputy Assistant
Director for Financial Operations.
``(B) The Deputy Assistant Director for Financial Operations shall
be responsible for the policy, procedures, and direction of budgeting
matters and financial management with respect to the provision of direct
care across the military health system.
``(3)(A) There is in the Defense Health Agency a Deputy Assistant
Director for Health Care Operations.
``(B) The Deputy Assistant Director for Health Care Operations shall
be responsible for the policy, procedures, and direction of health care
administration in the military medical treatment facilities.
``(4)(A) There is in the Defense Health Agency a Deputy Assistant
Director for Medical Affairs.
``(B) The Deputy Assistant Director for Medical Affairs shall be
responsible for policy, procedures, and direction of clinical quality
and process improvement, patient safety, infection control, graduate
medical education, clinical integration, utilization review, risk
management, patient experience, and civilian physician recruiting.
``(5) Each Deputy Assistant Director appointed under paragraphs (1)
through (4) shall report directly to the Assistant Director for Health
Care Administration.
``(d) Certain Responsibilities of DHA Director.--(1) In addition to
the other duties of the Director of the Defense Health Agency, the
Director shall coordinate with the Joint Staff Surgeon to ensure that
the Director most effectively carries out the responsibilities of the
Defense Health Agency as a combat support agency under section 193 of
this title.
``(2) The responsibilities of the Director shall include the
following:
``(A) Ensuring that the Defense Health Agency meets the
operational needs of the commanders of the combatant commands.
``(B) Coordinating with the military departments to ensure
that the staffing at the military medical treatment facilities
supports readiness requirements for members of the armed forces
and health care personnel.

``(e) Definitions.--In this section:
``(1) The term `career appointee' has the meaning given that
term in section 3132(a)(4) of title 5.

[[Page 2195]]

``(2) The term `Defense Health Agency' means the Defense
Agency established pursuant to Department of Defense Directive
5136.13, or such successor Defense Agency.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter <> is amended
by inserting after the item relating to section 1073b the
following new item:

``1073c. Administration of Defense Health Agency and military medical
treatment facilities.''.

(b) Positions of Surgeon General in the Armed Forces.--
(1) Surgeon general of the army.--Section 3036 of title 10,
United States Code, is amended--
(A) in subsection (d), by striking ``(1)'';
(B) by redesignating subsection (e) as subsection
(g);
(C) by inserting after subsection (d) a new
subsection (e);
(D) by transferring paragraphs (2) and (3) of
subsection (d) to subsection (e), as added by
subparagraph (C), and redesignating such paragraphs as
paragraphs (1) and (2), respectively; and
(E) by adding after subsection (e), as added by
subparagraph (C), the following new subsection (f):

``(f)(1) The Surgeon General serves as the principal advisor to the
Secretary of the Army and the Chief of Staff of the Army on all health
and medical matters of the Army, including strategic planning and policy
development relating to such matters.
``(2) The Surgeon General serves as the chief medical advisor of the
Army to the Director of the Defense Health Agency on matters pertaining
to military health readiness requirements and safety of members of the
Army.
``(3) The Surgeon General, acting under the authority, direction,
and control of the Secretary of the Army, shall recruit, organize,
train, and equip, medical personnel of the Army.''.
(2) Surgeon general of the navy.--
(A) In general.--Section 5137 of title 10, United
States Code, is amended to read as follows:
``Sec. 5137. Surgeon General: appointment; duties

``(a) Appointment.--The Surgeon General of the Navy shall be
appointed by the President, by and with the advice and consent of the
Senate, for a term of four years, from officers on the active-duty list
of the Navy in any corps of the Navy Medical Department.
``(b) Duties.--(1) The Surgeon General serves as the Chief of the
Bureau of Medicine and Surgery and serves as the principal advisor to
the Secretary of the Navy and the Chief of Naval Operations on all
health and medical matters of the Navy and the Marine Corps, including
strategic planning and policy development relating to such matters.
``(2) The Surgeon General serves as the chief medical advisor of the
Navy and the Marine Corps to the Director of the Defense Health Agency
on matters pertaining to military health readiness requirements and
safety of members of the Navy and the Marine Corps.
``(3) The Surgeon General, acting under the authority, direction,
and control of the Secretary of the Navy, shall recruit, organize,
train, and equip, medical personnel of the Navy and the Marine Corps.''.

[[Page 2196]]

(B) Clerical amendment.--The table of sections at
the beginning of chapter 513 of such title <> is amended by striking the item
relating to section 5137 and inserting the following new
item:

``5137. Surgeon General: appointment; duties.''.

(3) Surgeon general of the air force.--
(A) In general.--Section 8036 of title 10, United
States Code, is amended to read as follows:
``Sec. 8036. Surgeon General: appointment; duties

``(a) Appointment.--The Surgeon General of the Air Force shall be
appointed by the President, by and with the advice and consent of the
Senate from officers of the Air Force who are in the Air Force medical
department.
``(b) Duties.--(1) The Surgeon General serves as the principal
advisor to the Secretary of the Air Force and the Chief of Staff of the
Air Force on all health and medical matters of the Air Force, including
strategic planning and policy development relating to such matters.
``(2) The Surgeon General serves as the chief medical advisor of the
Air Force to the Director of the Defense Health Agency on matters
pertaining to military health readiness requirements and safety of
members of the Air Force.
``(3) The Surgeon General, acting under the authority, direction,
and control of the Secretary of the Air Force, shall recruit, organize,
train, and equip, medical personnel of the Air Force.''.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 805 of such title <> is amended by striking the item
relating to section 8036 and inserting the following new
item:

``8036. Surgeon General: appointment; duties.''.

(c) <>  Appointments.--The Secretary of
Defense shall make appointments of the positions under section 1073c of
title 10, United States Code, as added by subsection (a)--
(1) by not later than October 1, 2018; and
(2) by not increasing the number of full-time equivalent
employees of the Defense Health Agency.

(d) Implementation Plan.--
(1) In general.--The Secretary of Defense shall develop a
plan to implement section 1073c of title 10, United States Code,
as added by subsection (a).
(2) Elements.--The plan developed under paragraph (1) shall
include the following:
(A) How the Secretary will carry out subsection (a)
of such section 1073c.
(B) Efforts to eliminate duplicative activities
carried out by the elements of the Defense Health Agency
and the military departments.
(C) Efforts to maximize efficiencies in the
activities carried out by the Defense Health Agency.
(D) How the Secretary will implement such section
1073c in a manner that reduces the number of members of
the Armed Forces, civilian employees who are full-time

[[Page 2197]]

equivalent employees, and contractors relating to the
headquarters activities of the military health system,
as of the date of the enactment of this Act.

(e) Reports.--
(1) Interim report.--Not later than March 1, 2017, the
Secretary shall submit to the Committees on Armed Services of
the House of Representatives and the Senate a report
containing--
(A) a preliminary draft of the plan developed under
subsection (d)(1); and
(B) any recommendations for legislative actions the
Secretary determines necessary to carry out the plan.
(2) Final report.--Not later than March 1, 2018, the
Secretary shall submit to the Committees on Armed Services of
the House of Representatives and the Senate a report containing
the final version of the plan developed under subsection (d)(1).
(3) Comptroller general reviews.--
(A) The Comptroller General of the United States
shall submit to the Committees on Armed Services of the
House of Representatives and the Senate--
(i) a review of the preliminary draft of the
plan submitted under paragraph (1) by not later
than September 1, 2017; and
(ii) a review of the final version of the plan
submitted under paragraph (2) by not later than
September 1, 2018.
(B) Each review of the plan conducted under
subparagraph (A) shall determine whether the Secretary
has addressed the required elements for the plan under
subsection (d)(2).
SEC. 703. MILITARY MEDICAL TREATMENT FACILITIES.

(a) Administration.--
(1) In general.--Chapter 55 of title 10, United States Code,
as amended by section 702, is further amended by inserting after
section 1073c the following new section:
``Sec. 1073d. <>  Military medical treatment
facilities

``(a) In General.--To support the medical readiness of the armed
forces and the readiness of medical personnel, the Secretary of Defense,
in consultation with the Secretaries of the military departments, shall
maintain the military medical treatment facilities described in
subsections (b), (c), and (d).
``(b) Medical Centers.--(1) The Secretary of Defense shall maintain
medical centers in areas with a large population of members of the armed
forces and covered beneficiaries.
``(2) Medical centers shall serve as referral facilities for members
and covered beneficiaries who require comprehensive health care services
that support medical readiness.
``(3) Medical centers shall consist of the following:
``(A) Inpatient and outpatient tertiary care facilities that
incorporate specialty and subspecialty care.
``(B) Graduate medical education programs.
``(C) Residency training programs.
``(D) Level one or level two trauma care capabilities.

[[Page 2198]]

``(4) The Secretary may designate a medical center as a regional
center of excellence for unique and highly specialized health care
services, including with respect to polytrauma, organ transplantation,
and burn care.
``(c) Hospitals.--(1) The Secretary of Defense shall maintain
hospitals in areas where civilian health care facilities are unable to
support the health care needs of members of the armed forces and covered
beneficiaries.
``(2) Hospitals shall provide--
``(A) inpatient and outpatient health services to maintain
medical readiness; and
``(B) such other programs and functions as the Secretary
determines appropriate.

``(3) Hospitals shall consist of inpatient and outpatient care
facilities with limited specialty care that the Secretary determines--
``(A) is cost effective; or
``(B) is not available at civilian health care facilities in
the area of the hospital.

``(d) Ambulatory Care Centers.--(1) The Secretary of Defense shall
maintain ambulatory care centers in areas where civilian health care
facilities are able to support the health care needs of members of the
armed forces and covered beneficiaries.
``(2) Ambulatory care centers shall provide the outpatient health
services required to maintain medical readiness, including with respect
to partnerships established pursuant to section 706 of the National
Defense Authorization Act for Fiscal Year 2017.
``(3) Ambulatory care centers shall consist of outpatient care
facilities with limited specialty care that the Secretary determines--
``(A) is cost effective; or
``(B) is not available at civilian health care facilities in
the area of the ambulatory care center.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter, as amended by section 702, <> is further amended by inserting after the item
relating to section 1073c the following new item:

``1073d. Military medical treatment facilities.''.

(3) <>  Satellite centers.--In
addition to the centers of excellence designated under section
1073d(b)(4) of title 10, United States Code, as added by
paragraph (1), the Secretary of Defense may establish satellite
centers of excellence to provide specialty care for certain
conditions, including with respect to--
(A) post-traumatic stress;
(B) traumatic brain injury; and
(C) such other conditions as the Secretary considers
appropriate.

(b) <>  Exception.--In carrying out
section 1073d of title 10, United States Code, as added by subsection
(a)(1), the Secretary of Defense may not restructure or realign the
infrastructure of, or modify the health care services provided by, a
military medical treatment facility unless the Secretary determines
that, if such a restructure, realignment, or modification will eliminate
the ability of a covered beneficiary to access health care services at a
military medical treatment facility, the covered beneficiary will be
able to access such health care services through the purchased care
component of the TRICARE program.

[[Page 2199]]

(c) Update of Study.--
(1) In general.--The Secretary of Defense, in collaboration
with the Secretaries of the military departments, shall update
the report described in paragraph (2) to address the
restructuring or realignment of military medical treatment
facilities pursuant to section 1073d of title 10, United States
Code, as added by subsection (a), including with respect to any
expansions or consolidations of such facilities.
(2) Report described.--The report described in this
paragraph is the Military Health System Modernization Study
dated May 29th, 2015, required by section 713(a)(2) of the Carl
Levin and Howard P. ``Buck'' McKeon National Defense
Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128
Stat. 3414).
(3) Submission.--Not later than 270 days after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees the updated report under
paragraph (1).

(d) Implementation Plan.--
(1) In general.--Not later than two years after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees an implementation plan
to restructure or realign the military medical treatment
facilities pursuant to section 1073d of title 10, United States
Code, as added by subsection (a).
(2) Elements.--The implementation plan under paragraph (1)
shall include the following:
(A) With respect to each military medical treatment
facility--
(i) whether the facility will be realigned or
restructured under the plan;
(ii) whether the functions of such facility
will be expanded or consolidated;
(iii) the costs of such realignment or
restructuring;
(iv) a description of any changes to the
military and civilian personnel assigned to such
facility as of the date of the plan;
(v) a timeline for such realignment or
restructuring;
(vi) the justifications for such realignment
or restructuring, including an assessment of the
capacity of the civilian health care facilities
located near such facility;
(vii) a comprehensive assessment of the health
care services provided at the facility;
(viii) a description of the current
accessibility of covered beneficiaries to health
care services provided at the facility and
proposed modifications to that accessibility,
including with respect to types of services
provided;
(ix) a description of the current availability
of urgent care, emergent care, and specialty care
at the facility and in the TRICARE provider
network in the area in which the facility is
located, and proposed modifications to the
availability of such care;
(x) a description of the current level of
coordination between the facility and local health
care providers

[[Page 2200]]

in the area in which the facility is located and
proposed modifications to such level of
coordination; and
(xi) a description of any unique challenges to
providing health care at the facility, with a
focus on challenges relating to rural, remote, and
insular areas, as appropriate.
(B) A description of the relocation of the graduate
medical education programs and the residency programs.
(C) A description of the plans to assist members of
the Armed Forces and covered beneficiaries with travel
and lodging, if necessary, in connection with the
receipt of specialty care services at regional centers
of excellence designated under subsection (b)(4) of such
section 1073d.
(D) A description of how the Secretary will carry
out subsection (b).
(3) GAO report.--Not later than 60 days after the date on
which the Secretary of Defense submits the report under
paragraph (1), the Comptroller General of the United States
shall submit to the Committees on Armed Services of the Senate
and the House of Representatives a review of such report.

(e) <>  Definitions.--In this section, the
terms ``covered beneficiary'' and ``TRICARE program'' have the meaning
given those terms in section 1072 of title 10, United States Code.
SEC. 704. ACCESS TO URGENT AND PRIMARY CARE UNDER TRICARE PROGRAM.

(a) In General.--Chapter 55 of title 10, United States Code, is
amended by inserting after section 1077 the following new section:
``Sec. 1077a. <>  Access to military medical
treatment facilities and other facilities

``(a) Urgent Care.--(1) The Secretary of Defense shall ensure that
military medical treatment facilities, at locations the Secretary
determines appropriate, provide urgent care services for members of the
armed forces and covered beneficiaries until 11:00 p.m. each day.
``(2) With respect to areas in which a military medical treatment
facility covered by paragraph (1) is not located, the Secretary shall
ensure that members of the armed forces and covered beneficiaries may
access urgent care clinics through the health care provider network
under the TRICARE program.
``(3) A covered beneficiary may access urgent care services without
the need for preauthorization for such services.
``(4) The Secretary shall--
``(A) publish information about changes in access to urgent
care under the TRICARE program--
``(i) on the primary publicly available Internet
website of the Department; and
``(ii) on the primary publicly available Internet
website of each military medical treatment facility; and
``(B) ensure that such information is made available on the
publicly available Internet website of each current managed care
support contractor that has established a health care provider
network under the TRICARE program.

``(b) Nurse Advice Line.--The Secretary shall ensure that the nurse
advice line of the Department directs covered beneficiaries seeking
access to care to the source of the most appropriate level

[[Page 2201]]

of health care required to treat the medical conditions of the
beneficiaries, including urgent care services described in subsection
(a).
``(c) Primary Care Clinics.--(1) The Secretary shall ensure that
primary care clinics at military medical treatment facilities are
available for members of the armed forces and covered beneficiaries
between the hours determined appropriate under paragraph (2), including
with respect to expanded hours described in subparagraph (B) of such
paragraph.
``(2)(A) The Secretary shall determine the hours that each primary
care clinic at a military medical treatment facility is available for
members of the armed forces and covered beneficiaries based on--
``(i) the needs of the military medical treatment facility
to meet the access standards under the TRICARE Prime program;
and
``(ii) the primary care utilization patterns of members and
covered beneficiaries at such military medical treatment
facility.

``(B) The primary care clinic hours at a military medical treatment
facility determined under subparagraph (A) shall include expanded hours
beyond regular business hours during weekdays and the weekend if the
Secretary determines under such subparagraph that sufficient demand
exists at the military medical treatment facility for such expanded
primary care clinic hours.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter <> is amended by inserting after
the item relating to section 1077 the following new item:

``1077a. Access to military medical treatment facilities and other
facilities''.

(c) <>  Implementation.--The Secretary of
Defense shall implement--
(1) subsection (a) of section 1077a of title 10, United
States Code, as added by subsection (a) of this section, by not
later than one year after the date of the enactment of this Act;
and
(2) subsection (c) of such section by not later than 180
days after the date of the enactment of this Act.
SEC. 705. <>  VALUE-BASED PURCHASING AND
ACQUISITION OF MANAGED CARE SUPPORT
CONTRACTS FOR TRICARE PROGRAM.

(a) Value-based Health Care.--
(1) In general.--The Secretary of Defense shall develop and
implement value-based incentive programs as part of any contract
awarded under chapter 55 of title 10, United States Code, for
the provision of health care services to covered beneficiaries
to encourage health care providers under the TRICARE program
(including physicians, hospitals, and other persons and
facilities involved in providing such health care services) to
improve the following:
(A) The quality of health care provided to covered
beneficiaries under the TRICARE program.
(B) The experience of covered beneficiaries in
receiving health care under the TRICARE program.
(C) The health of covered beneficiaries.
(2) Value-based incentive programs.--
(A) Development.--In developing value-based
incentive programs under paragraph (1), the Secretary
shall--

[[Page 2202]]

(i) link payments to health care providers
under the TRICARE program to improved performance
with respect to quality, cost, and reducing the
provision of inappropriate care;
(ii) consider the characteristics of the
population of covered beneficiaries affected by
the value-based incentive program;
(iii) consider how the value-based incentive
program would affect the receipt of health care
under the TRICARE program by such covered
beneficiaries;
(iv) establish or maintain an assurance that
such covered beneficiaries will have timely access
to health care during the operation of the value-
based incentive program;
(v) ensure that such covered beneficiaries do
not incur any additional costs by reason of the
value-based incentive program; and
(vi) consider such other factors as the
Secretary considers appropriate.
(B) Scope and metrics.--With respect to a value-
based incentive program developed and implemented under
paragraph (1), the Secretary shall ensure that--
(i) the size, scope, and duration of the
value-based incentive program is reasonable in
relation to the purpose of the value-based
incentive program; and
(ii) the value-based incentive program relies
on the core quality performance metrics adopted
pursuant to section 728.
(3) Use of existing models.--In developing a value-based
incentive program under paragraph (1), the Secretary may adapt a
value-based incentive program conducted by a TRICARE managed
care support contractor, the Centers for Medicare & Medicaid
Services, or any other Federal Government, State government, or
commercial health care program.

(b) Transfer of Contracting Responsibility.--With respect to the
acquisition of any managed care support contracts under the TRICARE
program initiated after the date of the enactment of this Act, the
Secretary of Defense shall transfer contracting responsibility for the
solicitation and award of such contracts from the Defense Health Agency
to the Office of the Under Secretary of Defense for Acquisition,
Technology, and Logistics.
(c) Acquisition of Contracts.--
(1) Strategy.--Not later than January 1, 2018, the Secretary
of Defense shall develop and implement a strategy to ensure that
managed care support contracts under the TRICARE program entered
into with private sector entities, other than overseas medical
support contracts--
(A) improve access to health care for covered
beneficiaries;
(B) improve health outcomes for covered
beneficiaries;
(C) improve the quality of health care received by
covered beneficiaries;
(D) enhance the experience of covered beneficiaries
in receiving health care; and
(E) lower per capita costs to the Department of
Defense of health care provided to covered
beneficiaries.
(2) Applicability of strategy.--

[[Page 2203]]

(A) In general.--The strategy required by paragraph
(1) shall apply to all managed care support contracts
under the TRICARE program entered into with private
sector entities.
(B) Modification of contracts.--Contracts entered
into prior to the implementation of the strategy
required by paragraph (1) shall be modified to ensure
consistency with such strategy.
(3) Local, regional, and national health plans.--In
developing and implementing the strategy required by paragraph
(1), the Secretary shall ensure that local, regional, and
national health plans have an opportunity to participate in the
competition for managed care support contracts under the TRICARE
program.
(4) Continuous innovation.--The strategy required by
paragraph (1) shall include incentives for the incorporation of
innovative ideas and solutions into managed care support
contracts under the TRICARE program through the use of teaming
agreements, subcontracts, and other contracting mechanisms that
can be used to develop and continuously refresh high-performing
networks of health care providers at the national, regional, and
local level.
(5) Elements of strategy.--The strategy required by
paragraph (1) shall provide for the following with respect to
managed care support contracts under the TRICARE program:
(A) The maximization of flexibility in the design
and configuration of networks of individual and
institutional health care providers, including a focus
on the development of high-performing networks of health
care providers.
(B) The establishment of an integrated medical
management system between military medical treatment
facilities and health care providers in the private
sector that, when appropriate, effectively coordinates
and integrates health care across the continuum of care.
(C) With respect to telehealth services--
(i) the maximization of the use of such
services to provide real-time interactive
communications between patients and health care
providers and remote patient monitoring; and
(ii) the use of standardized payment methods
to reimburse health care providers for the
provision of such services.
(D) The use of value-based reimbursement
methodologies, including through the use of value-based
incentive programs under subsection (a), that transfer
financial risk to health care providers and managed care
support contractors.
(E) The use of financial incentives for contractors
and health care providers to receive an equitable share
in the cost savings to the Department resulting from
improvement in health outcomes for covered beneficiaries
and the experience of covered beneficiaries in receiving
health care.
(F) The use of incentives that emphasize prevention
and wellness for covered beneficiaries receiving health
care services from private sector entities to seek such
services from high-value health care providers.

[[Page 2204]]

(G) The adoption of a streamlined process for
enrollment of covered beneficiaries to receive health
care and timely assignment of primary care managers to
covered beneficiaries.
(H) The elimination of the requirement for a
referral to be authorized prior receiving specialty care
services at a facility of the Department of Defense or
through the TRICARE program.
(I) The use of incentives to encourage covered
beneficiaries to participate in medical and lifestyle
intervention programs.
(6) Rural, remote, and isolated areas.--In developing and
implementing the strategy required by paragraph (1), the
Secretary shall--
(A) assess the unique characteristics of providing
health care services in Alaska, Hawaii, and the
territories and possessions of the United States, and in
rural, remote, or isolated locations in the contiguous
48 States;
(B) consider the various challenges inherent in
developing robust networks of health care providers in
those locations;
(C) develop a provider reimbursement rate structure
in those locations that ensures--
(i) timely access of covered beneficiaries to
health care services;
(ii) the delivery of high-quality primary and
specialty care;
(iii) improvement in health outcomes for
covered beneficiaries; and
(iv) an enhanced experience of care for
covered beneficiaries; and
(D) ensure that managed care support contracts under
the TRICARE program in those locations will--
(i) establish individual and institutional
provider networks that will provide timely access
to care for covered beneficiaries, including
pursuant to such networks relating to an Indian
tribe or tribal organization that is party to the
Alaska Native Health Compact with the Indian
Health Service or has entered into a contract with
the Indian Health Service to provide health care
in rural Alaska or other locations in the United
States; and
(ii) deliver high-quality care, better health
outcomes, and a better experience of care for
covered beneficiaries.

(d) Report Prior to Certain Contract Modifications.--Not later than
60 days before the date on which the Secretary of Defense first modifies
a contract awarded under chapter 55 of title 10, United States Code, to
implement a value-based incentive program under subsection (a), or the
managed care support contract acquisition strategy under subsection (c),
the Secretary shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on any implementation
plan of the Secretary with respect to such value-based incentive program
or managed care support contract acquisition strategy.
(e) Comptroller General Report.--

[[Page 2205]]

(1) In general.--Not later than 180 days after the date on
which the Secretary submits the report under subsection (d), the
Comptroller General of the United States shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report that assesses the compliance of the
Secretary of Defense with the requirements of subsection (a) and
subsection (c).
(2) Elements.--The report required by paragraph (1) shall
include an assessment of the following:
(A) Whether the approach of the Department of
Defense for acquiring managed care support contracts
under the TRICARE program--
(i) improves access to care;
(ii) improves health outcomes;
(iii) improves the experience of care for
covered beneficiaries; and
(iv) lowers per capita health care costs.
(B) Whether the Department has, in its requirements
for managed care support contracts under the TRICARE
program, allowed for--
(i) maximum flexibility in network design and
development;
(ii) integrated medical management between
military medical treatment facilities and network
providers;
(iii) the maximum use of the full range of
telehealth services;
(iv) the use of value-based reimbursement
methods that transfer financial risk to health
care providers and managed care support
contractors;
(v) the use of prevention and wellness
incentives to encourage covered beneficiaries to
seek health care services from high-value
providers;
(vi) a streamlined enrollment process and
timely assignment of primary care managers;
(vii) the elimination of the requirement to
seek authorization for referrals for specialty
care services;
(viii) the use of incentives to encourage
covered beneficiaries to engage in medical and
lifestyle intervention programs; and
(ix) the use of financial incentives for
contractors and health care providers to receive
an equitable share in cost savings resulting from
improvements in health outcomes and the experience
of care for covered beneficiaries.
(C) Whether the Department has considered, in
developing requirements for managed care support
contracts under the TRICARE program, the following:
(i) The unique characteristics of providing
health care services in Alaska, Hawaii, and the
territories and possessions of the United States,
and in rural, remote, or isolated locations in the
contiguous 48 States;
(ii) The various challenges inherent in
developing robust networks of health care
providers in those locations.

[[Page 2206]]

(iii) A provider reimbursement rate structure
in those locations that ensures--
(I) timely access of covered
beneficiaries to health care services;
(II) the delivery of high-quality
primary and specialty care;
(III) improvement in health outcomes
for covered beneficiaries; and
(IV) an enhanced experience of care
for covered beneficiaries.

(f) Definitions.--In this section:
(1) The terms ``covered beneficiary'' and ``TRICARE
program'' have the meaning given those terms in section 1072 of
title 10, United States Code.
(2) The term ``high-performing networks of health care
providers'' means networks of health care providers that, in
addition to such other requirements as the Secretary of Defense
may specify for purposes of this section, do the following:
(A) Deliver high quality health care as measured by
leading health quality measurement organizations such as
the National Committee for Quality Assurance and the
Agency for Healthcare Research and Quality.
(B) Achieve greater efficiency in the delivery of
health care by identifying and implementing within such
network improvement opportunities that guide patients
through the entire continuum of care, thereby reducing
variations in the delivery of health care and preventing
medical errors and duplication of medical services.
(C) Improve population-based health outcomes by
using a team approach to deliver case management,
prevention, and wellness services to high-need and high-
cost patients.
(D) Focus on preventive care that emphasizes--
(i) early detection and timely treatment of
disease;
(ii) periodic health screenings; and
(iii) education regarding healthy lifestyle
behaviors.
(E) Coordinate and integrate health care across the
continuum of care, connecting all aspects of the health
care received by the patient, including the patient's
health care team.
(F) Facilitate access to health care providers,
including--
(i) after-hours care;
(ii) urgent care; and
(iii) through telehealth appointments, when
appropriate.
(G) Encourage patients to participate in making
health care decisions.
(H) Use evidence-based treatment protocols that
improve the consistency of health care and eliminate
ineffective, wasteful health care practices.
SEC. 706. <>  ESTABLISHMENT OF HIGH
PERFORMANCE MILITARY-CIVILIAN INTEGRATED
HEALTH DELIVERY SYSTEMS.

(a) In General.--Not later than January 1, 2018, the Secretary of
Defense shall establish military-civilian integrated health

[[Page 2207]]

delivery systems through partnerships with other health systems,
including local or regional health systems in the private sector--
(1) to improve access to health care for covered
beneficiaries;
(2) to enhance the experience of covered beneficiaries in
receiving health care;
(3) to improve health outcomes for covered beneficiaries;
(4) to share resources between the Department of Defense and
the private sector, including such staff, equipment, and
training assets as may be required to carry out such integrated
health delivery systems;
(5) to maintain services within military treatment
facilities that are essential for the maintenance of operational
medical force readiness skills of health care providers of the
Department; and
(6) to provide members of the Armed Forces with additional
training opportunities to maintain such readiness skills.

(b) Elements of Systems.--Each military-civilian integrated health
delivery system established under subsection (a) shall--
(1) deliver high quality health care as measured by leading
national health quality measurement organizations;
(2) achieve greater efficiency in the delivery of health
care by identifying and implementing within each such system
improvement opportunities that guide patients through the entire
continuum of care, thereby reducing variations in the delivery
of health care and preventing medical errors and duplication of
medical services;
(3) improve population-based health outcomes by using a team
approach to deliver case management, prevention, and wellness
services to high-need and high-cost patients;
(4) focus on preventive care that emphasizes--
(A) early detection and timely treatment of disease;
(B) periodic health screenings; and
(C) education regarding healthy lifestyle behaviors;
(5) coordinate and integrate health care across the
continuum of care, connecting all aspects of the health care
received by the patient, including the patient's health care
team;
(6) facilitate access to health care providers, including--
(A) after-hours care;
(B) urgent care; and
(C) through telehealth appointments, when
appropriate;
(7) encourage patients to participate in making health care
decisions;
(8) use evidence-based treatment protocols that improve the
consistency of health care and eliminate ineffective, wasteful
health care practices; and
(9) improve coordination of behavioral health services with
primary health care.

(c) Agreements.--
(1) In general.--In establishing military-civilian
integrated health delivery systems through partnerships under
subsection (a), the Secretary shall seek to enter into memoranda
of understanding or contracts between military treatment
facilities and health maintenance organizations, health care
centers of excellence, public or private academic medical
institutions,

[[Page 2208]]

regional health organizations, integrated health systems,
accountable care organizations, and such other health systems as
the Secretary considers appropriate.
(2) Private sector care.--Memoranda of understanding and
contracts entered into under paragraph (1) shall ensure that
covered beneficiaries are eligible to enroll in and receive
medical services under the private sector components of
military-civilian integrated health delivery systems established
under subsection (a).
(3) Value-based reimbursement methodologies.--The Secretary
shall incorporate value-based reimbursement methodologies, such
as capitated payments, bundled payments, or pay for performance,
into memoranda of understanding and contracts entered into under
paragraph (1) to reimburse entities for medical services
provided to covered beneficiaries under such memoranda of
understanding and contracts.
(4) Quality of care.--Each memorandum of understanding or
contract entered into under paragraph (1) shall ensure that the
quality of services received by covered beneficiaries through a
military-civilian integrated health delivery system under such
memorandum of understanding or contract is at least comparable
to the quality of services received by covered beneficiaries
from a military treatment facility.

(d) Covered Beneficiary Defined.--In this section, the term
``covered beneficiary'' has the meaning given that term in section 1072
of title 10, United States Code.
SEC. 707. <>  JOINT TRAUMA SYSTEM.

(a) Plan.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the Committees on Armed Services of the House of
Representatives and the Senate an implementation plan to
establish a Joint Trauma System within the Defense Health Agency
that promotes improved trauma care to members of the Armed
Forces and other individuals who are eligible to be treated for
trauma at a military medical treatment facility.
(2) Implementation.--The Secretary shall implement the plan
under paragraph (1) after a 90-day period has elapsed following
the date on which the Comptroller General of the United States
is required to submit to the Committees on Armed Services of the
House of Representatives and the Senate the review under
subsection (c). In implementing such plan, the Secretary shall
take into account any recommendation made by the Comptroller
General under such review.

(b) Elements.--The Joint Trauma System described in subsection
(a)(1) shall include the following elements:
(1) Serve as the reference body for all trauma care provided
across the military health system.
(2) Establish standards of care for trauma services provided
at military medical treatment facilities.
(3) Coordinate the translation of research from the centers
of excellence of the Department of Defense into standards of
clinical trauma care.
(4) Coordinate the incorporation of lessons learned from the
trauma education and training partnerships pursuant to section
708 into clinical practice.

[[Page 2209]]

(c) Review.--Not later than 180 days after the date on which the
Secretary submits to the Committees on Armed Services of the House of
Representatives and the Senate the implementation plan under subsection
(a)(1), the Comptroller General of the United States shall submit to
such committees a review of such plan to determine if each element under
subsection (b) is included in such plan.
(d) Review of Military Trauma System.--In establishing a Joint
Trauma System, the Secretary of Defense may seek to enter into an
agreement with a non-governmental entity with subject matter experts
to--
(1) conduct a system-wide review of the military trauma
system, including a comprehensive review of combat casualty care
and wartime trauma systems during the period beginning on
January 1, 2001, and ending on the date of the review, including
an assessment of lessons learned to improve combat casualty care
in future conflicts; and
(2) make publicly available a report containing such review
and recommendations to establish a comprehensive trauma system
for the Armed Forces.
SEC. 708. <>  JOINT TRAUMA EDUCATION AND
TRAINING DIRECTORATE.

(a) Establishment.--The Secretary of Defense shall establish a Joint
Trauma Education and Training Directorate (in this section referred to
as the ``Directorate'') to ensure that the traumatologists of the Armed
Forces maintain readiness and are able to be rapidly deployed for future
armed conflicts. The Secretary shall carry out this section in
collaboration with the Secretaries of the military departments.
(b) Duties.--The duties of the Directorate are as follows:
(1) To enter into and coordinate the partnerships under
subsection (c).
(2) To establish the goals of such partnerships necessary
for trauma teams led by traumatologists to maintain professional
competency in trauma care.
(3) To establish metrics for measuring the performance of
such partnerships in achieving such goals.
(4) To develop methods of data collection and analysis for
carrying out paragraph (3).
(5) To communicate and coordinate lessons learned from such
partnerships with the Joint Trauma System established under
section 707.
(6) To develop standardized combat casualty care instruction
for all members of the Armed Forces, including the use of
standardized trauma training platforms.
(7) To develop a comprehensive trauma care registry to
compile relevant data from point of injury through
rehabilitation of members of the Armed Forces.
(8) To develop quality of care outcome measures for combat
casualty care.
(9) To direct the conduct of research on the leading causes
of morbidity and mortality of members of the Armed Forces in
combat.

(c) Partnerships.--
(1) In general.--The Secretary may enter into partnerships
with civilian academic medical centers and large metropolitan
teaching hospitals that have level I civilian trauma

[[Page 2210]]

centers to provide integrated combat trauma teams, including
forward surgical teams, with maximum exposure to a high volume
of patients with critical injuries.
(2) Trauma teams.--Under the partnerships entered into with
civilian academic medical centers and large metropolitan
teaching hospitals under paragraph (1), trauma teams of the
Armed Forces led by traumatologists of the Armed Forces shall
embed within the trauma centers of the medical centers and
hospitals on an enduring basis.
(3) Selection.--The Secretary shall select civilian academic
medical centers and large metropolitan teaching hospitals to
enter into partnerships under paragraph (1) based on patient
volume, acuity, and other factors the Secretary determines
necessary to ensure that the traumatologists of the Armed Forces
and the associated clinical support teams have adequate and
continuous exposure to critically injured patients.
(4) Consideration.--In entering into partnerships under
paragraph (1), the Secretary may consider the experiences and
lessons learned by the military departments that have entered
into memoranda of understanding with civilian medical centers
for trauma care.

(d) Personnel Management Plan.--
(1) Plan.--The Secretary shall establish a personnel
management plan for the following wartime medical specialties:
(A) Emergency medical services and prehospital care.
(B) Trauma surgery.
(C) Critical care.
(D) Anesthesiology.
(E) Emergency medicine.
(F) Other wartime medical specialties the Secretary
determines appropriate for purposes of the plan.
(2) Elements.--The elements of the plan established under
paragraph (1) shall include, at a minimum, the following:
(A) An accession plan for the number of qualified
medical personnel to maintain wartime medical
specialties on an annual basis in order to maintain the
required number of trauma teams as determined by the
Secretary.
(B) The number of positions required in each such
medical specialty.
(C) Crucial organizational and operational
assignments for personnel in each such medical
specialty.
(D) Career pathways for personnel in each such
medical specialty.
(3) Implementation.--The Secretaries of the military
departments shall carry out the plan established under paragraph
(1).

(e) Implementation Plan.--Not later than July 1, 2017, the Secretary
of Defense shall submit to the Committees on Armed Services of the House
of Representatives and the Senate an implementation plan for
establishing the Joint Trauma Education and Training Directorate under
subsection (a), entering into partnerships under subsection (c), and
establishing the plan under subsection (d).
(f) Level I Civilian Trauma Center Defined.--In this section, the
term ``level I civilian trauma center'' means a comprehensive regional
resource that is a tertiary care facility central to the

[[Page 2211]]

trauma system and is capable of providing total care for every aspect of
injury from prevention through rehabilitation.
SEC. 709. <>  STANDARDIZED SYSTEM FOR
SCHEDULING MEDICAL APPOINTMENTS AT
MILITARY TREATMENT FACILITIES.

(a) Standardized System.--
(1) In general.--Not later than January 1, 2018, the
Secretary of Defense shall implement a system for scheduling
medical appointments at military treatment facilities that is
standardized throughout the military health system to enable
timely access to care for covered beneficiaries.
(2) Lack of variance.--The system implemented under
paragraph (1) shall ensure that the appointment scheduling
processes and procedures used within the military health system
do not vary among military treatment facilities.

(b) Sole System.--Upon implementation of the system under subsection
(a), no military treatment facility may use an appointment scheduling
process other than such system.
(c) Scheduling of Appointments.--
(1) In general.--Under the system implemented under
subsection (a), each military treatment facility shall use a
centralized appointment scheduling capability for covered
beneficiaries that includes the ability to schedule appointments
manually via telephone as described in paragraph (2) or
automatically via a device that is connected to the Internet
through an online scheduling system described in paragraph (3).
(2) Telephone appointment process.--
(A) In general.--In the case of a covered
beneficiary who contacts a military treatment facility
via telephone to schedule an appointment under the
system implemented under subsection (a), the Secretary
shall implement standard processes to ensure that the
needs of the covered beneficiary are met during the
first such telephone call.
(B) Matters included.--The standard processes
implemented under subparagraph (A) shall include the
following:
(i) The ability of a covered beneficiary,
during the telephone call to schedule an
appointment, to also schedule wellness visits or
follow-up appointments during the 180-day period
beginning on the date of the request for the visit
or appointment.
(ii) The ability of a covered beneficiary to
indicate the process through which the covered
beneficiary prefers to be reminded of future
appointments, which may include reminder telephone
calls, emails, or cellular text messages to the
covered beneficiary at specified intervals prior
to appointments.
(3) Online system.--
(A) In general.--The Secretary shall implement an
online scheduling system that is available 24 hours per
day, seven days per week, for purposes of scheduling
appointments under the system implemented under
subsection (a).
(B) Capabilities of online system.--The online
scheduling system implemented under subparagraph (A)
shall have the following capabilities:

[[Page 2212]]

(i) An ability to send automated email and
text message reminders, including repeat
reminders, to patients regarding upcoming
appointments.
(ii) An ability to store appointment records
to ensure rapid access by medical personnel to
appointment data.

(d) Standards for Productivity of Health Care Providers.--
(1) In general.--The Secretary shall implement standards for
the productivity of health care providers at military treatment
facilities.
(2) Matters considered.--In developing standards under
paragraph (1), the Secretary shall consider--
(A) civilian benchmarks for measuring the
productivity of health care providers;
(B) the optimal number of medical appointments for
each health care provider that would be required, as
determined by the Secretary, to maintain access of
covered beneficiaries to health care from the
Department; and
(C) the readiness requirements of the Armed Forces.

(e) Plan.--
(1) In general.--Not later than January 1, 2017, the
Secretary shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a comprehensive plan
to implement the system required under subsection (a).
(2) Elements.--The plan required under paragraph (1) shall
include the following:
(A) A description of the manual appointment process
to be used at military treatment facilities under the
system required under subsection (a).
(B) A description of the automated appointment
process to be used at military treatment facilities
under such system.
(C) A timeline for the full implementation of such
system throughout the military health system.

(f) Briefing.--Not later than February 1, 2018, the Secretary shall
brief the Committees on Armed Services of the Senate and the House of
Representatives on the implementation of the system required under
subsection (a) and the standards for the productivity of health care
providers required under subsection (d).
(g) Report on Missed Appointments.--
(1) In general.--Not later than March 1 each year, the
Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a report
on the total number of medical appointments at military
treatment facilities for which a covered beneficiary failed to
appear without prior notification during the one-year period
preceding the submittal of the report.
(2) Elements.--Each report under paragraph (1) shall include
for each military treatment facility the following:
(A) An identification of the top five reasons for a
covered beneficiary missing an appointment.
(B) A comparison of the number of missed
appointments for specialty care versus primary care.
(C) An estimate of the cost to the Department of
Defense of missed appointments.

[[Page 2213]]

(D) An assessment of strategies to reduce the number
of missed appointments.

(h) Covered Beneficiary Defined.--In this section, the term
``covered beneficiary'' has the meaning given that term in section 1072
of title 10, United States Code.

Subtitle B--Other Health Care Benefits

SEC. 711. EXTENDED TRICARE PROGRAM COVERAGE FOR CERTAIN MEMBERS OF
THE NATIONAL GUARD AND DEPENDENTS DURING
CERTAIN DISASTER RESPONSE DUTY.

(a) In General.--Chapter 55 of title 10, United States Code, is
amended by inserting after section 1076e the following new section:
``Sec. 1076f. <>  TRICARE program: extension
of coverage for certain members of the
National Guard and dependents during certain
disaster response duty

``(a) Extended Coverage.--During a period in which a member of the
National Guard is performing disaster response duty, the member may be
treated as being on active duty for a period of more than 30 days for
purposes of the eligibility of the member and dependents of the member
for health care benefits under the TRICARE program if such period
immediately follows a period in which the member served on full-time
National Guard duty under section 502(f) of title 32, including pursuant
to chapter 9 of such title, unless the Governor of the State (or, with
respect to the District of Columbia, the mayor of the District of
Columbia) determines that such extended eligibility is not in the best
interest of the member or the State.
``(b) Contribution by State.--(1) The Secretary shall charge a State
for the costs of providing coverage under the TRICARE program to members
of the National Guard of the State and the dependents of the members
pursuant to subsection (a). Such charges shall be paid from the funds of
the State or from any other non-Federal funds.
``(2) Any amounts received by the Secretary under paragraph (1)
shall be credited to the appropriation available for the Defense Health
Program Account under section 1100 of this title, shall be merged with
sums in such Account that are available for the fiscal year in which
collected, and shall be available under subsection (b) of such section,
including to carry out subsection (a) of this section.
``(c) Definitions.--In this section:
``(1) The term `disaster response duty' means duty performed
by a member of the National Guard in State status pursuant to an
emergency declaration by the Governor of the State (or, with
respect to the District of Columbia, the mayor of the District
of Columbia) in response to a disaster or in preparation for an
imminent disaster.
``(2) The term `State' means each of the several States, the
District of Columbia, the Commonwealth of Puerto Rico, and any
territory or possession of the United States.''.

[[Page 2214]]

(b) Clerical Amendment.--The table of sections at the beginning of
such chapter <> is amended by inserting after
the item relating to section 1076e the following new item:

``1076f. TRICARE program: extension of coverage for certain members of
the National Guard and dependents during certain disaster
response duty.''.

SEC. 712. CONTINUITY OF HEALTH CARE COVERAGE FOR RESERVE
COMPONENTS.

(a) Study.--
(1) In general.--The Secretary of Defense shall conduct a
study of options for providing health care coverage that
improves the continuity of health care provided to current and
former members of the Selected Reserve of the Ready Reserve who
are not--
(A) serving on active duty;
(B) eligible for the Transitional Assistance
Management Program under section 1145 of title 10,
United States Code; or
(C) eligible for the Federal Employees Health
Benefit Program.
(2) Elements.--The study under paragraph (1) shall address
the following:
(A) Whether to allow current and former members of
the Selected Reserve to participate in the Federal
Employees Health Benefit Program.
(B) Whether to pay a stipend to current and former
members to continue coverage in a health plan obtained
by the member.
(C) Whether to allow current and former members to
participate in the TRICARE program under section 1076d
of title 10, United States Code.
(D) Whether to amend section 1076f of title 10,
United States Code, as added by section 711, to require
the extension of TRICARE program coverage for members of
the National Guard assigned to Homeland Response Force
Units mobilized for a State emergency pursuant to
chapter 9 of title 32, United States Code.
(E) The findings and recommendations under section
748.
(F) Any other options for providing health care
coverage to current and former members of the Selected
Reserve the Secretary considers appropriate.
(3) Consultation.--In carrying out the study under paragraph
(1), the Secretary shall consult with, and obtain the opinions
of, current and former members of the Selected Reserve,
including the leadership of the Selected Reserve.
(4) Submission.--
(A) Report.--Not later than 180 days after the date
of the enactment of this Act, the Secretary shall submit
to the congressional defense committees a report on the
study under paragraph (1).
(B) Matters included.--The report under subparagraph
(A) shall include the following:
(i) A description of the health care coverage
options addressed by the Secretary under paragraph
(2).

[[Page 2215]]

(ii) Identification of such health care
coverage option that the Secretary recommends as
the best option.
(iii) The justifications for such recommended
best option.
(iv) The number and proportion of the current
and former members of the Selected Reserve
projected to participate in such recommended best
option.
(v) A determination of the appropriate cost
sharing for such recommended best option with
respect to the percentage contribution as a
monthly premium for current members of the
Selected Reserve.
(vi) An estimate of the cost of implementing
such recommended best option.
(vii) Any legislative language required to
implement such recommended best option.

(b) <>  Pilot Program.--
(1) Authorization.--The Secretary of Defense and the
Director may jointly carry out a pilot program, at the election
of the Secretary, under which the Director provides commercial
health insurance coverage to eligible reserve component members
who enroll in a health benefits plan under paragraph (4) as an
individual, for self plus one coverage, or for self and family
coverage.
(2) Elements.--The pilot program shall--
(A) provide for enrollment by eligible reserve
component members, at the election of the member, in a
health benefits plan under paragraph (4) during an open
enrollment period established by the Director for
purposes of this subsection;
(B) include a variety of national and regional
health benefits plans that--
(i) meet the requirements of this subsection;
(ii) are broadly representative of the health
benefits plans available in the commercial market;
and
(iii) do not contain unnecessary restrictions,
as determined by the Director; and
(C) offer a sufficient number of health benefits
plans in order to provide eligible reserve component
beneficiaries with an ample choice of health benefits
plans, as determined by the Director.
(3) Duration.--If the Secretary elects to carry out the
pilot program, the Secretary and the Director shall carry out
the pilot program for not less than five years.
(4) Health benefits plans.--
(A) In general.--In providing health insurance
coverage under the pilot program, the Director shall
contract with qualified carriers for a variety of health
benefits plans.
(B) Description of plans.--Health benefits plans
contracted for under this subsection--
(i) may vary by type of plan design, covered
benefits, geography, and price;
(ii) shall include maximum limitations on out-
of-pocket expenses paid by an eligible reserve
component beneficiary for the health care
provided; and
(iii) may not exclude an eligible reserve
component member who chooses to enroll.

[[Page 2216]]

(C) Quality of plans.--The Director shall ensure
that each health benefits plan offered under this
subsection offers a high degree of quality, as
determined by criteria that include--
(i) access to an ample number of medical
providers, as determined by the Director;
(ii) adherence to industry-accepted quality
measurements, as determined by the Director;
(iii) access to benefits described in
paragraph (5), including ease of referral for
health care services; and
(iv) inclusion in the services covered by the
plan of advancements in medical treatments and
technology as soon as practicable in accordance
with generally accepted standards of medicine.
(5) Benefits.--A health benefits plan offered by the
Director under this subsection shall include, at a minimum, the
following benefits:
(A) The health care benefits provided under chapter
55 of title 10, United States Code, excluding
pharmaceutical, dental, and extended health care option
benefits.
(B) Such other benefits as the Director determines
appropriate.
(6) Care at facilities of uniformed services.--
(A) In general.--If an eligible reserve component
beneficiary receives benefits described in paragraph (5)
at a facility of the uniformed services, the health
benefits plan under which the beneficiary is covered
shall be treated as a third-party payer under section
1095 of title 10, United States Code, and shall pay
charges for such benefits as determined by the
Secretary.
(B) Military medical treatment facilities.--The
Secretary, in consultation with the Director--
(i) may contract with qualified carriers with
which the Director has contracted under paragraph
(4) to provide health insurance coverage for
health care services provided at military
treatment facilities under this subsection; and
(ii) may receive payments under section 1095
of title 10, United States Code, from qualified
carriers for health care services provided at
military medical treatment facilities under this
subsection.
(7) Special rule relating to active duty period.--
(A) In general.--An eligible reserve component
member may not receive benefits under a health benefits
plan under this subsection during any period in which
the member is serving on active duty for more than 30
days.
(B) Treatment of dependents.--Subparagraph (A) does
not affect the coverage under a health benefits plan of
any dependent of an eligible reserve component member.
(8) Eligibility for federal employees health benefits
program.--An individual is not eligible to enroll in or be
covered under a health benefits plan under this subsection if
the individual is eligible to enroll in a health benefits plan
under the Federal Employees Health Benefits Program.
(9) Cost sharing.--
(A) Responsibility for payment.--

[[Page 2217]]

(i) In general.--Except as provided in clause
(ii), an eligible reserve component member shall
pay an annual premium amount calculated under
subparagraph (B) for coverage under a health
benefits plan under this subsection and additional
amounts described in subparagraph (C) for health
care services in connection with such coverage.
(ii) Active duty period.--
(I) In general.--During any period
in which an eligible reserve component
member is serving on active duty for
more than 30 days, the eligible reserve
component member is not responsible for
paying any premium amount under
subparagraph (B) or additional amounts
under subparagraph (C).
(II) Coverage of dependents.--With
respect to a dependent of an eligible
reserve component member that is covered
under a health benefits plan under this
subsection, during any period described
in subclause (I) with respect to the
member, the Secretary shall, on behalf
of the dependent, pay 100 percent of the
total annual amount of a premium for
coverage of the dependent under the plan
and such cost-sharing amounts as may be
applicable under the plan.
(B) Premium amount.--
(i) In general.--The annual premium calculated
under this subparagraph is an amount equal to 28
percent of the total annual amount of a premium
under the health benefits plan selected.
(ii) Types of coverage.--The premium amounts
calculated under this subparagraph shall include
separate calculations for--
(I) coverage as an individual;
(II) self plus one coverage; and
(III) self and family coverage.
(C) Additional amounts.--The additional amounts
described in this subparagraph with respect to an
eligible reserve component member are such cost-sharing
amounts as may be applicable under the health benefits
plan under which the member is covered.
(10) Contracting.--
(A) In general.--In contracting for health benefits
plans under paragraph (4), the Director may contract
with qualified carriers in a manner similar to the
manner in which the Director contracts with carriers
under section 8902 of title 5, United States Code,
including that--
(i) a contract under this subsection shall be
for a uniform term of not less than one year, but
may be made automatically renewable from term to
term in the absence of notice of termination by
either party;
(ii) a contract under this subsection shall
contain a detailed statement of benefits offered
and shall include such maximums, limitations,
exclusions, and other definitions of benefits
determined by the Director in accordance with
paragraph (5);
(iii) a contract under this subsection shall
ensure that an eligible reserve component member
who is

[[Page 2218]]

eligible to enroll in a health benefits plan
pursuant to such contract is able to enroll in
such plan; and
(iv) the terms of a contract under this
subsection relating to the nature, provision, or
extent of coverage or benefits (including payments
with respect to benefits) shall supersede and
preempt any conflicting State or local law.
(B) Evaluation of financial solvency.--The Director
shall perform a thorough evaluation of the financial
solvency of an insurance carrier before entering into a
contract with the insurance carrier under subparagraph
(A).
(11) Recommendations and data.--
(A) In general.--The Secretary of Defense, in
consultation with the Secretary of Homeland Security,
shall provide recommendations and data to the Director
with respect to--
(i) matters involving military medical
treatment facilities;
(ii) matters unique to eligible reserve
component members and dependents of such members;
and
(iii) such other strategic guidance necessary
for the Director to administer this subsection as
the Secretary of Defense, in consultation with the
Secretary of Homeland Security, considers
appropriate.
(B) Limitation on implementation.--The Director
shall not implement any recommendation provided by the
Secretary of Defense under subparagraph (A) if the
Director determines that the implementation of the
recommendation would result in eligible reserve
components beneficiaries receiving less generous health
benefits under this subsection than the health benefits
commonly available to individuals under the Federal
Employees Health Benefits Program during the same
period.
(12) Transmission of information.--On an annual basis during
each year in which the pilot program is carried out, the
Director shall provide the Secretary with information on the use
of health care benefits under the pilot program, including--
(A) the number of eligible reserve component
beneficiaries participating in the pilot program, listed
by the health benefits plan under which the beneficiary
is covered;
(B) the number of health benefits plans offered
under the pilot program and a description of each such
plan; and
(C) the costs of the health care provided under the
plans.
(13) Funding.--
(A) In general.--The Secretary of Defense and the
Director shall jointly establish an appropriate
mechanism to fund the pilot program.
(B) Availability of amounts.--Amounts shall be made
available to the Director pursuant to the mechanism
established under subparagraph (A), without fiscal year
limitation--
(i) for payments to health benefits plans
under this subsection; and

[[Page 2219]]

(ii) to pay the costs of administering this
subsection.
(14) Reports.--
(A) Initial reports.--Not later than one year after
the date on which the Secretary establishes the pilot
program, and annually thereafter for the following three
years, the Secretary shall submit to the Committees on
Armed Services of the Senate and the House of
Representatives a report on the pilot program.
(B) Matters included.--The report under subparagraph
(A) shall include, with respect to the year covered by
the report, the following:
(i) The number of eligible reserve component
beneficiaries participating in the pilot program,
listed by the health benefits plan under which the
beneficiary is covered.
(ii) The number of health benefits plans
offered under the pilot program.
(iii) The cost of the pilot program to the
Department of Defense.
(iv) The estimated cost savings, if any, to
the Department of Defense.
(v) The average cost to the eligible reserve
component beneficiary.
(vi) The effect of the pilot program on the
medical readiness of the members of the reserve
components.
(vii) The effect of the pilot program on
access to health care for members of the reserve
components.
(C) Final report.--Not later than 180 days before
the date on which the pilot program will terminate
pursuant to paragraph (3), the Secretary shall submit to
the Committees on Armed Services of the Senate and the
House of Representatives a report on the pilot program
that includes--
(i) the matters specified under subparagraph
(B); and
(ii) the recommendation of the Secretary
regarding whether to make the pilot program
permanent or to terminate the pilot program.

(c) Definitions.--In this section:
(1) The term ``Director'' means the Director of the Office
of Personnel Management.
(2) The term ``eligible reserve component beneficiary''
means an eligible reserve component member enrolled in, or a
dependent of such a member described in subparagraph (A), (D),
or (I) of section 1072(2) of title 10, United States Code,
covered under, a health benefits plan under subsection (b).
(3) The term ``eligible reserve component member'' means a
member of the Selected Reserve of the Ready Reserve of an Armed
Force.
(4) The term ``extended health care option'' means the
program of extended benefits under subsections (d) and (e) of
section 1079 of title 10, United States Code.
(5) The term ``Federal Employees Health Benefits Program''
means the health insurance program under chapter 89 of title 5,
United States Code.

[[Page 2220]]

(6) The term ``qualified carrier'' means an insurance
carrier that is licensed to issue group health insurance in any
State, the District of Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana Islands, Guam,
and any territory or possession of the United States.
SEC. 713. PROVISION OF HEARING AIDS TO DEPENDENTS OF RETIRED
MEMBERS.

Section 1077 of title 10, United States Code, is amended--
(1) in subsection (a)(16), by striking ``A hearing aid'' and
inserting ``Except as provided by subsection (g), a hearing
aid''; and
(2) by adding at the end the following new subsection:

``(g) In addition to the authority to provide a hearing aid under
subsection (a)(16), hearing aids may be sold under this section to
dependents of former members of the uniformed services at cost to the
United States.''.
SEC. 714. COVERAGE OF MEDICALLY NECESSARY FOOD AND VITAMINS FOR
CERTAIN CONDITIONS UNDER THE TRICARE
PROGRAM.

(a) In General.--Section 1077 of title 10, United States Code, as
amended by section 713, is further amended--
(1) in subsection (a)--
(A) in paragraph (3), by inserting before the period
at the end the following: ``, including, in accordance
with subsection (g), medically necessary vitamins''; and
(B) by adding at the end the following new
paragraph:
``(18) In accordance with subsection (g), medically
necessary food and the medical equipment and supplies necessary
to administer such food (other than durable medical equipment
and supplies).''; and
(2) by adding at the end the following new subsection:

``(h)(1) Vitamins that may be provided under subsection (a)(3) are
vitamins used for the management of a covered disease or condition
pursuant to the prescription, order, or recommendation (as applicable)
of a physician or other health care professional qualified to make such
prescription, order, or recommendation.
``(2) Medically necessary food that may be provided under subsection
(a)(18)--
``(A) is food, including a low protein modified food product
or an amino acid preparation product, that is--
``(i) furnished pursuant to the prescription, order,
or recommendation (as applicable) of a physician or
other health care professional qualified to make such
prescription, order, or recommendation, for the dietary
management of a covered disease or condition;
``(ii) a specially formulated and processed product
(as opposed to a naturally occurring foodstuff used in
its natural state) for the partial or exclusive feeding
of an individual by means of oral intake or enteral
feeding by tube;
``(iii) intended for the dietary management of an
individual who, because of therapeutic or chronic
medical needs, has limited or impaired capacity to
ingest, digest, absorb, or metabolize ordinary
foodstuffs or certain nutrients, or who has other
special medically determined nutrient requirements, the
dietary management of which

[[Page 2221]]

cannot be achieved by the modification of the normal
diet alone;
``(iv) intended to be used under medical
supervision, which may include in a home setting; and
``(v) intended only for an individual receiving
active and ongoing medical supervision under which the
individual requires medical care on a recurring basis
for, among other things, instructions on the use of the
food; and
``(B) may not include--
``(i) food taken as part of an overall diet designed
to reduce the risk of a disease or medical condition or
as weight-loss products, even if the food is recommended
by a physician or other health care professional;
``(ii) food marketed as gluten-free for the
management of celiac disease or non-celiac gluten
sensitivity;
``(iii) food marketed for the management of
diabetes; or
``(iv) such other products as the Secretary
determines appropriate.

``(3) In this subsection, the term `covered disease or condition'
means--
``(A) inborn errors of metabolism;
``(B) medical conditions of malabsorption;
``(C) pathologies of the alimentary tract or the
gastrointestinal tract;
``(D) a neurological or physiological condition; and
``(E) such other diseases or conditions the Secretary
determines appropriate.''.

(b) <>  Effective Date.--The amendments
made by subsection (a) shall apply to health care provided under chapter
55 of such title on or after the date that is one year after the date of
the enactment of this Act.
SEC. 715. ELIGIBILITY OF CERTAIN BENEFICIARIES UNDER THE TRICARE
PROGRAM FOR PARTICIPATION IN THE FEDERAL
EMPLOYEES DENTAL AND VISION INSURANCE
PROGRAM.

(a) In General.--
(1) Dental benefits.--Section 8951 of title 5, United States
Code, is amended--
(A) in paragraph (3), by striking ``paragraph (1) or
(2)'' and inserting ``paragraph (1), (2), or (8)''; and
(B) by adding at the end the following new
paragraph:
``(8) The term `covered TRICARE-eligible individual' means
an individual entitled to dental care under chapter 55 of title
10, pursuant to section 1076c of such title, who the Secretary
of Defense determines should be an eligible individual for
purposes of this chapter.''.
(2) Vision benefits.--Section 8981 of title 5, United States
Code, is amended--
(A) in paragraph (3), by striking ``paragraph (1) or
(2)'' and inserting ``paragraph (1), (2), or (8)''; and
(B) by adding at the end the following new
paragraph:
``(8)(A) The term `covered TRICARE-eligible individual'--
``(i) means an individual entitled to medical care
under chapter 55 of title 10, pursuant to section 1076d,
1076e, 1079(a), 1086(c), or 1086(d) of such title, who
the Secretary of Defense determines in accordance with
an agreement

[[Page 2222]]

entered into under subparagraph (B) should be an
eligible individual for purposes of this chapter; and
``(ii) does not include an individual covered under
section 1110b of title 10.
``(B) The Secretary of Defense shall enter into an agreement
with the Director of the Office relating to classes of
individuals described in subparagraph (A)(i) who should be
eligible individuals for purposes of this chapter.''.

(b) Conforming Amendments.--
(1) Dental benefits.--Section 8958(c) of title 5, United
States Code, is amended--
(A) in paragraph (1), by striking ``or'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(3) in the case of a covered TRICARE-eligible individual
who receives pay from the Federal Government or an annuity from
the Federal Government due to the death of a member of the
uniformed services (as defined in section 101 of title 10), and
is not a former spouse of a member of the uniformed services, be
withheld from--
``(A) the pay (including retired pay) of such
individual; or
``(B) the annuity paid to such individual; or
``(4) in the case of a covered TRICARE-eligible individual
who is not described in paragraph (3), be billed to such
individual directly.''.
(2) Vision benefits.--Section 8988(c) of title 5, United
States Code, is amended--
(A) in paragraph (1), by striking ``or'' at the end;
(B) in paragraph (2), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(3) in the case of a covered TRICARE-eligible individual
who receives pay from the Federal Government or an annuity from
the Federal Government due to the death of a member of the
uniformed services (as defined in section 101 of title 10), and
is not a former spouse of a member of the uniformed services, be
withheld from--
``(A) the pay (including retired pay) of such
individual; or
``(B) the annuity paid to such individual; or
``(4) in the case of a covered TRICARE-eligible individual
who is not described in paragraph (3), be billed to such
individual directly.''.
(3) Plan for dental insurance for certain retirees,
surviving spouses, and other dependents.--Subsection (a) of
section 1076c of title 10, United States Code, is amended to
read as follows:

``(a) Requirement for Plan.--(1) The Secretary of Defense shall
establish a dental insurance plan for retirees of the uniformed
services, certain unremarried surviving spouses, and dependents in
accordance with this section.
``(2) The Secretary may satisfy the requirement under paragraph (1)
by entering into an agreement with the Director of the Office of
Personnel Management to allow persons described in subsection (b) to
enroll in an insurance plan under chapter 89A of

[[Page 2223]]

title 5 that provides benefits similar to those benefits required to be
provided under subsection (d).''.
(c) <>  Applicability.--The amendments made
by this section shall apply with respect to the first contract year for
chapter 89A or 89B of title 5, United States Code, as applicable, that
begins on or after January 1, 2018.
SEC. 716. APPLIED BEHAVIOR ANALYSIS.

(a) Rates of Reimbursement.--
(1) In general.--In furnishing applied behavior analysis
under the TRICARE program to individuals described in paragraph
(2) during the period beginning on the date of the enactment of
this Act and ending on December 31, 2018, the Secretary of
Defense shall ensure that the reimbursement rates for providers
of applied behavior analysis are not less than the rates that
were in effect on March 31, 2016.
(2) Individuals described.--Individuals described in this
paragraph are individuals who are covered beneficiaries by
reason of being a member or former member of the Army, Navy, Air
Force, or Marine Corps, including the reserve components
thereof, or a dependent of such a member or former member.

(b) Analysis.--
(1) In general.--Upon the completion of the Department of
Defense Comprehensive Autism Care Demonstration, the Assistant
Secretary of Defense for Health Affairs shall conduct an
analysis to--
(A) use data gathered during the demonstration to
set future reimbursement rates for providers of applied
behavior analysis under the TRICARE program;
(B) review comparative commercial insurance claims
for purposes of setting such future rates, including
by--
(i) conducting an analysis of the comparative
total of commercial insurance claims billed for
applied behavior analysis; and
(ii) reviewing any covered beneficiary
limitations on access to applied behavior analysis
services at various military installations
throughout the United States; and
(C) determine whether the use of applied behavioral
analysis under the demonstration has improved outcomes
for covered beneficiaries with autism spectrum disorder.
(2) Submission.--The Assistant Secretary shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives the analysis conducted under paragraph (1).

(c) Definitions.--In this section, the terms ``covered beneficiary''
and ``TRICARE program'' have the meaning given those terms in section
1072 of title 10, United States Code.
SEC. 717. <>  EVALUATION AND TREATMENT OF
VETERANS AND CIVILIANS AT MILITARY
TREATMENT FACILITIES.

(a) In General.--The Secretary of Defense shall authorize a veteran
(in consultation with the Secretary of Veterans Affairs) or civilian to
be evaluated and treated at a military treatment facility if the
Secretary of Defense determines that--

[[Page 2224]]

(1) the evaluation and treatment of the individual is
necessary to attain the relevant mix and volume of medical
casework required to maintain medical readiness skills and
competencies of health care providers at the facility;
(2) the health care providers at the facility have the
competencies, skills, and abilities required to treat the
individual; and
(3) the facility has available space, equipment, and
materials to treat the individual.

(b) Priority of Covered Beneficiaries.--The evaluation and treatment
of covered beneficiaries at military treatment facilities shall be
prioritized ahead of the evaluation and treatment of veterans and
civilians at such facilities under subsection (a).
(c) Reimbursement for Treatment.--
(1) Civilians.--A military treatment facility that evaluates
or treats an individual (other than an individual described in
paragraph (2)) under subsection (a) shall bill the individual
and accept reimbursement from the individual or a third-party
payer (as that term is defined in section 1095(h) of title 10,
United States Code) on behalf of such individual for the costs
of any health care services provided to the individual under
such subsection.
(2) Veterans.--The Secretary of Defense shall enter into a
memorandum of agreement with the Secretary of Veterans Affairs
under which the Secretary of Veterans Affairs will pay a
military treatment facility using a prospective payment
methodology (including interagency transfers of funds or
obligational authority and similar transactions) for the costs
of any health care services provided at the facility under
subsection (a) to individuals eligible for such health care
services from the Department of Veterans Affairs.
(3) Use of amounts.--The Secretary of Defense shall make
available to a military treatment facility any amounts collected
by such facility under paragraph (1) or (2) for health care
services provided to an individual under subsection (a).

(d) Covered Beneficiary Defined.--In this section, the term
``covered beneficiary'' has the meaning given that term in section 1072
of title 10, United States Code.
SEC. 718. <>  ENHANCEMENT OF USE OF
TELEHEALTH SERVICES IN MILITARY HEALTH
SYSTEM.

(a) Incorporation of Telehealth.--
(1) In general.--Not later than 18 months after the date of
the enactment of this Act, the Secretary of Defense shall
incorporate, throughout the direct care and purchased care
components of the military health system, the use of telehealth
services, including mobile health applications--
(A) to improve access to primary care, urgent care,
behavioral health care, and specialty care;
(B) to perform health assessments;
(C) to provide diagnoses, interventions, and
supervision;
(D) to monitor individual health outcomes of covered
beneficiaries with chronic diseases or conditions;
(E) to improve communication between health care
providers and patients; and

[[Page 2225]]

(F) to reduce health care costs for covered
beneficiaries and the Department of Defense.
(2) Types of telehealth services.--The telehealth services
required to be incorporated under paragraph (1) shall include
those telehealth services that--
(A) maximize the use of secure messaging between
health care providers and covered beneficiaries to
improve the access of covered beneficiaries to health
care and reduce the number of visits to medical
facilities for health care needs;
(B) allow covered beneficiaries to schedule
appointments; and
(C) allow health care providers, through video
conference, telephone or tablet applications, or home
health monitoring devices--
(i) to assess and evaluate disease signs and
symptoms;
(ii) to diagnose diseases;
(iii) to supervise treatments; and
(iv) to monitor health outcomes.

(b) Coverage of Items or Services.--An item or service furnished to
a covered beneficiary via a telecommunications system shall be covered
under the TRICARE program to the same extent as the item or service
would be covered if furnished in the location of the covered
beneficiary.
(c) Reimbursement Rates for Telehealth Services.--The Secretary
shall develop standardized payment methods to reimburse health care
providers for telehealth services provided to covered beneficiaries in
the purchased care component of the TRICARE program, including by using
reimbursement rates that incentivize the provision of telehealth
services.
(d) Reduction or Elimination of Copayments.--The Secretary shall
reduce or eliminate, as the Secretary considers appropriate, copayments
or cost shares for covered beneficiaries in connection with the receipt
of telehealth services under the purchased care component of the TRICARE
program.
(e) Reports.--
(1) Initial report.--
(A) In general.--Not later than 180 days after the
date of the enactment of this Act, the Secretary shall
submit to the Committees on Armed Services of the Senate
and the House of Representatives a report describing the
full range of telehealth services to be available in the
direct care and purchased care components of the
military health system and the copayments and cost
shares, if any, associated with those services.
(B) Reimbursement plan.--The report required under
subparagraph (A) shall include a plan to develop
standardized payment methods to reimburse health care
providers for telehealth services provided to covered
beneficiaries in the purchased care component of the
TRICARE program, as required under subsection (c).
(2) Final report.--
(A) In general.--Not later than three years after
the date on which the Secretary begins incorporating,
throughout the direct care and purchased care components
of the military health system, the use of telehealth
services as

[[Page 2226]]

required under subsection (a), the Secretary shall
submit to the Committees on Armed Services of the Senate
and the House of Representatives a report describing the
impact made by the use of telehealth services, including
mobile health applications, to carry out the actions
specified in subparagraphs (A) through (F) of subsection
(a)(1).
(B) Elements.--The report required under
subparagraph (A) shall include an assessment of the
following:
(i) The satisfaction of covered beneficiaries
with telehealth services furnished by the
Department of Defense.
(ii) The satisfaction of health care providers
in providing telehealth services furnished by the
Department.
(iii) The effect of telehealth services
furnished by the Department on the following:
(I) The ability of covered
beneficiaries to access health care
services in the direct care and
purchased care components of the
military health system.
(II) The frequency of use of
telehealth services by covered
beneficiaries.
(III) The productivity of health
care providers providing care furnished
by the Department.
(IV) The reduction, if any, in the
use by covered beneficiaries of health
care services in military treatment
facilities or medical facilities in the
private sector.
(V) The number and types of
appointments for the receipt of
telehealth services furnished by the
Department.
(VI) The savings, if any, realized
by the Department by furnishing
telehealth services to covered
beneficiaries.

(f) Regulations.--
(1) Interim final rule.--Not later than 180 days after the
date of the enactment of this Act, the Secretary shall prescribe
an interim final rule to implement this section.
(2) Final rule.--Not later than 180 days after prescribing
the interim final rule under paragraph (1) and considering
public comments with respect to such interim final rule, the
Secretary shall prescribe a final rule to implement this
section.
(3) Objectives.--The regulations prescribed under paragraphs
(1) and (2) shall accomplish the objectives set forth in
subsection (a) and ensure quality of care, patient safety, and
the integrity of the TRICARE program.

(g) Definitions.--In this section, the terms ``covered beneficiary''
and ``TRICARE program'' have the meaning given those terms in section
1072 of title 10, United States Code.
SEC. 719. <>  AUTHORIZATION OF
REIMBURSEMENT BY DEPARTMENT OF DEFENSE TO
ENTITIES CARRYING OUT STATE VACCINATION
PROGRAMS FOR COSTS OF VACCINES PROVIDED TO
COVERED BENEFICIARIES.

(a) Reimbursement.--

[[Page 2227]]

(1) In general.--The Secretary of Defense may reimburse an
amount determined under paragraph (2) to an entity carrying out
a State vaccination program for the cost of vaccines provided to
covered beneficiaries through such program.
(2) Amount of reimbursement.--
(A) In general.--Except as provided in subparagraph
(B), the amount determined under this paragraph with
respect to a State vaccination program shall be the
amount assessed by the entity carrying out such program
to purchase vaccines provided to covered beneficiaries
through such program.
(B) Limitation.--The amount determined under this
paragraph to provide vaccines to covered beneficiaries
through a State vaccination program may not exceed the
amount that the Department would reimburse an entity
under the TRICARE program for providing vaccines to the
number of covered beneficiaries who were involved in the
applicable State vaccination program.

(b) Definitions.--In this section:
(1) Covered beneficiary; tricare program.--The terms
``covered beneficiary'' and ``TRICARE program'' have the
meanings given those terms in section 1072 of title 10, United
States Code.
(2) State vaccination program.--The term ``State vaccination
program'' means a vaccination program that provides vaccinations
to individuals in a State and is carried out by an entity
(including an agency of the State) within the State.

Subtitle C--Health Care Administration

SEC. 721. AUTHORITY TO CONVERT MILITARY MEDICAL AND DENTAL
POSITIONS TO CIVILIAN MEDICAL AND DENTAL
POSITIONS.

(a) Limited Authority for Conversion.--
(1) Authority.--Chapter 49 of title 10, United States Code,
is amended by inserting after section 976 the following new
section:
``Sec. 977. <>  Conversion of military medical
and dental positions to civilian medical and
dental positions: limitation

``(a) Process.--The Secretary of Defense, in collaboration with the
Secretaries of the military departments, shall establish a process to
define the military medical and dental personnel requirements necessary
to meet operational medical force readiness requirements.
``(b) Requirements Relating to Conversion.--A military medical or
dental position within the Department of Defense may be converted to a
civilian medical or dental position if the Secretary determines that the
position is not necessary to meet operational medical force readiness
requirements, as determined pursuant to subsection (a).
``(c) Grade or Level Converted.--In carrying out a conversion under
subsection (b), the Secretary of Defense--
``(1) shall convert the applicable military position to a
civilian position with a level of compensation commensurate with
the skills and experience necessary to carry out the duties of
such civilian position; and

[[Page 2228]]

``(2) may not place any limitation on the grade or level to
which the military position is so converted.

``(d) Definitions.--In this section:
``(1) The term `military medical or dental position' means a
position for the performance of health care functions within the
armed forces held by a member of the armed forces.
``(2) The term `civilian medical or dental position' means a
position for the performance of health care functions within the
Department of Defense held by an employee of the Department or
of a contractor of the Department.
``(3) The term `conversion', with respect to a military
medical or dental position, means a change of the position to a
civilian medical or dental position, effective as of the date of
the manning authorization document of the military department
making the change (through a change in designation from military
to civilian in the document, the elimination of the listing of
the position as a military position in the document, or through
any other means indicating the change in the document or
otherwise).''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 49 of such title <> is amended by inserting after the item relating to
section 976 the following new item:

``977. Conversion of military medical and dental positions to civilian
medical and dental positions: limitation.''.

(3) <>  Effective date of conversion
authority.--The Secretary of Defense may not carry out section
977(b) of title 10, United States Code, as added by paragraph
(1), until the date that is 180 days after the date on which the
Secretary submits the report under subsection (b).

(b) Report.--Not later than 90 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a report
that includes the following:
(1) A description of the process established under section
977(a) of title 10, United States Code, as added by subsection
(a), to define the military medical and dental personnel
requirements necessary to meet operational medical force
readiness requirements.
(2) A complete list, by position, of the military medical
and dental personnel requirements necessary to meet operational
medical force readiness requirements.

(c) Conforming Repeal.--Section 721 of the National Defense
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat.
198; 10 U.S.C. 129c note) is repealed.
SEC. 722. PROSPECTIVE PAYMENT OF FUNDS NECESSARY TO PROVIDE
MEDICAL CARE FOR THE COAST GUARD.

(a) In General.--Chapter 13 of title 14, United States Code, is
amended by adding at the end the following:
``Sec. 520. <>  Prospective payment of funds
necessary to provide medical care

``(a) Prospective Payment Required.--In lieu of the reimbursement
required under section 1085 of title 10, the Secretary of Homeland
Security shall make a prospective payment to the Secretary of Defense of
an amount that represents the actuarial valuation of treatment or care--

[[Page 2229]]

``(1) that the Department of Defense shall provide to
members of the Coast Guard, former members of the Coast Guard,
and dependents of such members and former members (other than
former members and dependents of former members who are a
Medicare-eligible beneficiary or for whom the payment for
treatment or care is made from the Medicare-Eligible Retiree
Health Care Fund) at facilities under the jurisdiction of the
Department of Defense or a military department; and
``(2) for which a reimbursement would otherwise be made
under section 1085.

``(b) Amount.--The amount of the prospective payment under
subsection (a) shall be--
``(1) in the case of treatment or care to be provided to
members of the Coast Guard and their dependents, derived from
amounts appropriated for the operating expenses of the Coast
Guard;
``(2) in the case of treatment or care to be provided former
members of the Coast Guard and their dependents, derived from
amounts appropriated for retired pay;
``(3) determined under procedures established by the
Secretary of Defense;
``(4) paid during the fiscal year in which treatment or care
is provided; and
``(5) subject to adjustment or reconciliation as the
Secretaries determine appropriate during or promptly after such
fiscal year in cases in which the prospective payment is
determined excessive or insufficient based on the services
actually provided.

``(c) No Prospective Payment When Service in Navy.--No prospective
payment shall be made under this section for any period during which the
Coast Guard operates as a service in the Navy.
``(d) Relationship to TRICARE.--This section shall not be construed
to require a payment for, or the prospective payment of an amount that
represents the value of, treatment or care provided under any TRICARE
program.''.
(b) Clerical Amendment.--The analysis for chapter 13 of title 14,
United States Code, <> is amended by adding at
the end the following:

``520. Prospective payment of funds necessary to provide medical
care.''.

(c) Repeal.--Section 217 of the Coast Guard Authorization Act of
2016 (Public Law 114-120), as amended by section 3503, and the item
relating to that section in the table of contents in section 2 of such
Act, <> are repealed.
SEC. 723. REDUCTION OF ADMINISTRATIVE REQUIREMENTS RELATING TO
AUTOMATIC RENEWAL OF ENROLLMENTS IN
TRICARE PRIME.

Section 1097a(b) of title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``(1) An'' and inserting
``An''; and
(2) by striking paragraph (2).

[[Page 2230]]

SEC. 724. MODIFICATION OF AUTHORITY OF UNIFORMED SERVICES
UNIVERSITY OF THE HEALTH SCIENCES TO
INCLUDE UNDERGRADUATE AND OTHER MEDICAL
EDUCATION AND TRAINING PROGRAMS.

(a) In General.--Section 2112(a) of title 10, United States Code, is
amended to read as follows:
``(a)(1) There is established a Uniformed Services University of the
Health Sciences (in this chapter referred to as the `University') with
authority to grant appropriate certificates, certifications,
undergraduate degrees, and advanced degrees.
``(2) The University shall be so organized as to graduate not fewer
than 100 medical students annually.
``(3) The headquarters of the University shall be at a site or sites
selected by the Secretary of Defense within 25 miles of the District of
Columbia.''.
(b) Administration.--Section 2113 of such title is amended--
(1) in subsection (d)--
(A) in the first sentence, by striking ``located in
or near the District of Columbia'';
(B) in the third sentence, by striking ``in or near
the District of Columbia''; and
(C) by striking the fifth sentence; and
(2) in subsection (e)(3), by inserting after ``programs''
the following: ``, including certificate, certification, and
undergraduate degree programs,''.

(c) Repeal of Expired Provision.--Section 2112a of such title is
amended--
(1) by striking subsection (b); and
(2) in subsection (a), by striking ``(a) Closure
Prohibited.--''.
SEC. 725. <>  ADJUSTMENT OF MEDICAL
SERVICES, PERSONNEL AUTHORIZED STRENGTHS,
AND INFRASTRUCTURE IN MILITARY HEALTH
SYSTEM TO MAINTAIN READINESS AND CORE
COMPETENCIES OF HEALTH CARE PROVIDERS.

(a) In General.--Except as provided by subsection (c), not later
than one year after the date of the enactment of this Act, the Secretary
of Defense shall implement measures to maintain the critical wartime
medical readiness skills and core competencies of health care providers
within the Armed Forces.
(b) Measures.--The measures under subsection (a) shall include
measures under which the Secretary ensures the following:
(1) Medical services provided through the military health
system at military medical treatment facilities--
(A) maintain the critical wartime medical readiness
skills and core competencies of health care providers
within the Armed Forces; and
(B) ensure the medical readiness of the Armed
Forces.
(2) The authorized strengths for military and civilian
personnel throughout the military health system--
(A) maintain the critical wartime medical readiness
skills and core competencies of health care providers
within the Armed Forces; and
(B) ensure the medical readiness of the Armed
Forces.
(3) The infrastructure in the military health system,
including infrastructure of military medical treatment
facilities--

[[Page 2231]]

(A) maintains the critical wartime medical readiness
skills and core competencies of health care providers
within the Armed Forces; and
(B) ensures the medical readiness of the Armed
Forces.
(4) Any covered beneficiary who may be affected by the
measures implemented under subsection (a) will be able to
receive through the purchased care component of the TRICARE
program any medical services that will not be available to such
covered beneficiary at a military medical treatment facility by
reason of such measures.

(c) Exception.--The Secretary is not required to implement measures
under subsection (a)(1) with respect to military medical treatment
facilities located in a foreign country if the Secretary determines that
providing medical services in addition to the medical services described
in such subsection is necessary to ensure that covered beneficiaries
located in that foreign country have access to a similar level of care
available to covered beneficiaries located in the United States.
(d) Definitions.--In this section:
(1) The term ``clinical and logistical capabilities'' means
those capabilities relating to the provision of health care that
are necessary to accomplish operational requirements,
including--
(A) combat casualty care;
(B) medical response to and treatment of injuries
sustained from chemical, biological, radiological,
nuclear, or explosive incidents;
(C) diagnosis and treatment of infectious diseases;
(D) aerospace medicine;
(E) undersea medicine;
(F) diagnosis, treatment, and rehabilitation of
specialized medical conditions;
(G) diagnosis and treatment of diseases and injuries
that are not related to battle; and
(H) humanitarian assistance.
(2) The terms ``covered beneficiary'' and ``TRICARE
program'' have the meanings given those terms in section 1072 of
title 10, United States Code.
(3) The term ``critical wartime medical readiness skills and
core competencies'' means those essential medical capabilities,
including clinical and logistical capabilities, that are--
(A) necessary to be maintained by health care
providers within the Armed Forces for national security
purposes; and
(B) vital to the provision of effective and timely
health care during contingency operations.
SEC. 726. <>  PROGRAM TO ELIMINATE
VARIABILITY IN HEALTH OUTCOMES AND IMPROVE
QUALITY OF HEALTH CARE SERVICES DELIVERED
IN MILITARY MEDICAL TREATMENT FACILITIES.

(a) Program.--Beginning not later than January 1, 2018, the
Secretary of Defense shall implement a program--
(1) to establish best practices for the delivery of health
care services for certain diseases or conditions at military
medical treatment facilities, as selected by the Secretary;

[[Page 2232]]

(2) to incorporate such best practices into the daily
operations of military medical treatment facilities selected by
the Secretary for purposes of the program, with priority in
selection given to facilities that provide specialty care; and
(3) to eliminate variability in health outcomes and to
improve the quality of health care services delivered at
military medical treatment facilities selected by the Secretary
for purposes of the program.

(b) Use of Clinical Practice Guidelines.--In carrying out the
program under subsection (a), the Secretary shall develop, implement,
monitor, and update clinical practice guidelines reflecting the best
practices established under paragraph (1) of such subsection.
(c) Development.--In developing the clinical practice guidelines
under subsection (b), the Secretary shall ensure that such development
includes a baseline assessment of health care delivery and outcomes at
military medical treatment facilities to evaluate and determine
evidence-based best practices, within the direct care component of the
military health system and the private sector, for treating the diseases
or conditions selected by the Secretary under subsection (a)(1).
(d) Implementation.--The Secretary shall implement the clinical
practice guidelines under subsection (b) in military medical treatment
facilities selected by the Secretary under subsection (a)(2) using means
determined appropriate by the Secretary, including by communicating with
the relevant health care providers of the evidence upon which the
guidelines are based and by providing education and training on the most
appropriate implementation of the guidelines.
(e) Monitoring.--The Secretary shall monitor the implementation of
the clinical practice guidelines under subsection (b) using appropriate
means, including by monitoring the results in clinical outcomes based on
specific metrics included as part of the guidelines.
(f) Updating.--The Secretary shall periodically update the clinical
practice guidelines under subsection (b) based on the results of
monitoring conducted under subsection (e) and by continuously assessing
evidence-based best practices within the direct care component of the
military health system and the private sector.
(g) Continuous Cycle.--The Secretary shall establish a continuous
cycle of carrying out subsections (c) through (f) with respect to the
clinical practice guidelines established under subsection (a).
SEC. 727. <>  ACQUISITION STRATEGY FOR
HEALTH CARE PROFESSIONAL STAFFING
SERVICES.

(a) Acquisition Strategy.--
(1) In general.--The Secretary of Defense shall develop and
carry out a performance-based, strategic sourcing acquisition
strategy with respect to entering into contracts for the
services of health care professional staff at military medical
treatment facilities located in a State.
(2) Elements.--The acquisition strategy under paragraph (1)
shall include the following:
(A) Except as provided by subparagraph (B), a
requirement that all the military medical treatment
facilities that provide direct care use contracts
described under paragraph (1).

[[Page 2233]]

(B) A process for a military medical treatment
facility to obtain a waiver of the requirement under
subparagraph (A) in order to use an acquisition strategy
not described in paragraph (1).
(C) Identification of the responsibilities of the
military departments and the elements of the Department
of Defense in carrying out such strategy.
(D) Projection of the demand by covered
beneficiaries for health care services, including with
respect to primary care and expanded-hours urgent care
services.
(E) Estimation of the workload gaps at military
medical treatment facilities for health care services,
including with respect to primary care and expanded-
hours urgent care services.
(F) Methods to analyze, using reliable and detailed
data covering the entire direct care component of the
military health system, the amount of funds expended on
contracts for the services of health care professional
staff.
(G) Methods to identify opportunities to consolidate
requirements for such services and reduce cost.
(H) Methods to measure cost savings that are
realized by using such contracts instead of purchased
care.
(I) Metrics to determine the effectiveness of such
strategy.
(J) Metrics to evaluate the success of the strategy
in achieving its objectives, including metrics to assess
the effects of the strategy on the timeliness of
beneficiary access to professional health care services
in military medical treatment facilities.
(K) Such other matters as the Secretary considers
appropriate.

(b) Report.--Not later than July 1, 2017, the Secretary shall submit
to the Committees on Armed Services of the Senate and the House of
Representatives a report on the status of implementing the acquisition
strategy under paragraph (1) of subsection (a), including how each
element under subparagraphs (A) through (K) of paragraph (2) of such
subsection is being carried out.
(c) Definitions.--In this section:
(1) The term ``covered beneficiary'' has the meaning given
that term in section 1072 of title 10, United States Code.
(2) The term ``State'' means the several States and the
District of Columbia.

(d) Conforming Repeal.--Section 725 of the Carl Levin and Howard P.
``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015
(Public Law 113-291; 10 U.S.C. 1091 note) is repealed.
SEC. 728. <>  ADOPTION OF CORE QUALITY
PERFORMANCE METRICS.

(a) Adoption.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall adopt,
to the extent appropriate, the core quality performance metrics
agreed upon by the Core Quality Measures Collaborative for use
by the military health system and in contracts awarded to carry
out the TRICARE program.
(2) Core measures.--The core quality performance metrics
described in paragraph (1) shall include the following sets:

[[Page 2234]]

(A) Accountable care organizations, patient centered
medical homes, and primary care.
(B) Cardiology.
(C) Gastroenterology.
(D) HIV and hepatitis C.
(E) Medical oncology.
(F) Obstetrics and gynecology.
(G) Orthopedics.
(H) Such other sets of core quality performance
metrics released by the Core Quality Measures
Collaborative as the Secretary considers appropriate.

(b) Publication.--
(1) Online availability.--Section 1073b of title 10, United
States Code, is amended--
(A) in paragraph (1)--
(i) by striking ``Not later than'' and all
that follows through ``2016, the Secretary'' and
inserting ``The Secretary''; and
(ii) by adding at the end the following new
sentence: ``Such data shall include the core
quality performance metrics adopted by the
Secretary under section 728 of the National
Defense Authorization Act for Fiscal Year 2017.'';
and
(B) in the section heading, by inserting ``and
publication of certain data'' after ``reports''.
(2) Clerical amendment.--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 and inserting the following:

``1073b. Recurring reports and publication of certain data.''.

(c) <>  Definitions.--In this section:
(1) The term ``Core Quality Measures Collaborative'' means
the collaboration between the Centers for Medicare & Medicaid
Services, major health insurance companies, national physician
organizations, and other entities to reach consensus on core
performance measures reported by health care providers.
(2) The term ``TRICARE program'' has the meaning given that
term in section 1072 of title 10, United States Code.
SEC. 729. <>  IMPROVEMENT OF HEALTH
OUTCOMES AND CONTROL OF COSTS OF HEALTH
CARE UNDER TRICARE PROGRAM THROUGH
PROGRAMS TO INVOLVE COVERED BENEFICIARIES.

(a) Medical Intervention Incentive Program.--
(1) In general.--The Secretary of Defense shall establish a
program to incentivize covered beneficiaries to participate in
medical intervention programs established by the Secretary, such
as comprehensive disease management programs, that may include
lowering fees for enrollment in the TRICARE program by a certain
percentage or lowering copayment and cost-share amounts for
health care services during a particular year for covered
beneficiaries with chronic diseases or conditions described in
paragraph (2) who met participation milestones, as determined by
the Secretary, in the previous year in such medical intervention
programs.

[[Page 2235]]

(2) Chronic diseases or conditions described.--Chronic
diseases or conditions described in this paragraph may include
diabetes, chronic obstructive pulmonary disease, asthma,
congestive heart failure, hypertension, history of stroke,
coronary artery disease, mood disorders, obesity, and such other
diseases or conditions as the Secretary determines appropriate.

(b) Lifestyle Intervention Incentive Program.--The Secretary shall
establish a program to incentivize lifestyle interventions for covered
beneficiaries, such as smoking cessation and weight reduction, that may
include lowering fees for enrollment in the TRICARE program by a certain
percentage or lowering copayment and cost share amounts for health care
services during a particular year for covered beneficiaries who met
participation milestones, as determined by the Secretary, in the
previous year with respect to such lifestyle interventions, such as
quitting smoking or achieving a lower body mass index by a certain
percentage.
(c) Healthy Lifestyle Maintenance Incentive Program.--The Secretary
shall establish a program to incentivize the maintenance of a healthy
lifestyle among covered beneficiaries, such as exercise and weight
maintenance, that may include lowering fees for enrollment in the
TRICARE program by a certain percentage or lowering copayment and cost-
share amounts for health care services during a particular year for
covered beneficiaries who met participation milestones, as determined by
the Secretary, in the previous year with respect to the maintenance of a
healthy lifestyle, such as maintaining smoking cessation or maintaining
a normal body mass index.
(d) Report.--
(1) In general.--Not later than January 1, 2020, the
Secretary shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report on the
implementation of the programs established under subsections
(a), (b), and (c).
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A detailed description of the programs
implemented under subsections (a), (b), and (c).
(B) An assessment of the impact of such programs
on--
(i) improving health outcomes for covered
beneficiaries; and
(ii) lowering per capita health care costs for
the Department of Defense.

(e) Regulations.--Not later than January 1, 2018, the Secretary
shall prescribe an interim final rule to carry out this section.
(f) Definitions.--In this section, the terms ``covered beneficiary''
and ``TRICARE program'' have the meaning given those terms in section
1072 of title 10, United States Code.
SEC. 730. <>  ACCOUNTABILITY FOR THE
PERFORMANCE OF THE MILITARY HEALTH SYSTEM
OF CERTAIN LEADERS WITHIN THE SYSTEM.

(a) In General.--Commencing not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense, in consultation
with the Secretaries of the military departments, shall incorporate into
the annual performance review of each military and civilian leader in
the military health system, as determined

[[Page 2236]]

by the Secretary of Defense, measures of accountability for the
performance of the military health system described in subsection (b).
(b) Measures of Accountability for Performance.--The measures of
accountability for the performance of the military health system
incorporated into the annual performance review of an individual
pursuant to this section shall include measures to assess performance
and assure accountability for the following:
(1) Quality of care.
(2) Access of beneficiaries to care.
(3) Improvement in health outcomes for beneficiaries.
(4) Patient safety.
(5) Such other matters as the Secretary of Defense, in
consultation with the Secretaries of the military departments,
considers appropriate.

(c) Report on Implementation.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall submit
to the Committees on Armed Services of the Senate and the House
of Representatives a report on the incorporation of measures of
accountability for the performance of the military health system
into the annual performance reviews of individuals as required
by this section.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A comprehensive plan for the use of measures of
accountability for performance in annual performance
reviews pursuant to this section as a means of assessing
and assuring accountability for the performance of the
military health system.
(B) The identification of each leadership position
in the military health system determined under
subsection (a) and a description of the specific
measures of accountability for performance to be
incorporated into the annual performance reviews of each
such position pursuant to this section.
SEC. 731. <>  ESTABLISHMENT OF ADVISORY
COMMITTEES FOR MILITARY TREATMENT
FACILITIES.

(a) In General.--The Secretary of Defense shall establish, under
such regulations as the Secretary may prescribe, an advisory committee
for each military treatment facility.
(b) Status of Certain Members of Advisory Committees.--A member of
an advisory committee established under subsection (a) who is not a
member of the Armed Forces on active duty or an employee of the Federal
Government shall, with the approval of the commanding officer or
director of the military treatment facility concerned, be treated as a
volunteer under section 1588 of title 10, United States Code, in
carrying out the duties of the member under this section.
(c) Duties.--Each advisory committee established under subsection
(a) for a military treatment facility shall provide to the commanding
officer or director of such facility advice on the administration and
activities of such facility as it relates to the experience of care for
beneficiaries at such facility.

[[Page 2237]]

Subtitle D--Reports and Other Matters

SEC. 741. EXTENSION OF AUTHORITY FOR JOINT DEPARTMENT OF DEFENSE-
DEPARTMENT OF VETERANS AFFAIRS MEDICAL
FACILITY DEMONSTRATION FUND AND REPORT ON
IMPLEMENTATION OF INFORMATION TECHNOLOGY
CAPABILITIES.

(a) In General.--Section 1704(e) of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat.
2573), as amended by section 722 of the Carl Levin and Howard P.
``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015
(Public Law 113-291) and section 723 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92), is further
amended by striking ``September 30, 2017'' and inserting ``September 30,
2018''.
(b) Report on Implementation of Information Technology
Capabilities.--Not later than March 30, 2017, the Secretary of Defense
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report on plans to implement all information
technology capabilities required by the executive agreement entered into
under section 1701(a) of the National Defense Authorization Act for
Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2567) that remain
unimplemented as of the date of the report.
SEC. 742. <>  PILOT PROGRAM ON EXPANSION
OF USE OF PHYSICIAN ASSISTANTS TO PROVIDE
MENTAL HEALTH CARE TO MEMBERS OF THE ARMED
FORCES.

(a) In General.--The Secretary of Defense may conduct a pilot
program to assess the feasibility and advisability of expanding the use
by the Department of Defense of physician assistants specializing in
psychiatric medicine at medical facilities of the Department of Defense
in order to meet the increasing demand for mental health care providers
at such facilities through the use of a psychiatry fellowship program
for physician assistants.
(b) Report on Pilot Program.--
(1) In general.--If the Secretary conducts the pilot program
under this section, not later than 90 days after the date on
which the Secretary completes the conduct of the pilot program,
the Secretary shall submit to the Committees on Armed Services
of the Senate and the House of Representatives a report on the
pilot program.
(2) Elements.--The report submitted under paragraph (1)
shall include the following:
(A) A description of the implementation of the pilot
program, including a detailed description of the
education and training provided under the pilot program.
(B) An assessment of potential cost savings, if any,
to the Department of Defense resulting from the pilot
program.
(C) A description of improvements, if any, to the
access of members of the Armed Forces to mental health
care resulting from the pilot program.
(D) A recommendation as to the feasibility and
advisability of extending or expanding the pilot
program.

[[Page 2238]]

SEC. 743. <>  PILOT PROGRAM FOR
PRESCRIPTION DRUG ACQUISITION COST PARITY
IN THE TRICARE PHARMACY BENEFITS PROGRAM.

(a) Authority to Establish Pilot Program.--The Secretary of Defense
may conduct a pilot program to evaluate whether, in carrying out the
TRICARE pharmacy benefits program under section 1074g of title 10,
United States Code, extending additional discounts for prescription
drugs filled at retail pharmacies will maintain or reduce prescription
drug costs for the Department of Defense.
(b) Elements of Pilot Program.--In carrying out the pilot program
under subsection (a), the Secretary shall require that for prescription
medications, including non-generic maintenance medications, that are
dispensed to TRICARE beneficiaries that are not Medicare eligible,
through any TRICARE participating retail pharmacy, including small
business pharmacies, manufacturers shall pay rebates such that those
medications are available to the Department at the lowest rate
available. In addition to utilizing the authority under section 1074g(f)
of title 10, United States Code, the Secretary shall have the authority
to enter into a blanket purchase agreement with prescription drug
manufacturers for supplemental discounts for prescription drugs
dispensed in the pilot to be paid in the form of manufacturer's rebates.
(c) Consultation.--The Secretary shall develop the pilot program in
consultation with--
(1) the Secretaries of the military departments;
(2) the Chief of the Pharmacy Operations Division of the
Defense Health Agency; and
(3) stakeholders, including TRICARE beneficiaries and retail
pharmacies.

(d) Duration of Pilot Program.--If the Secretary carries out the
pilot program under subsection (a), the Secretary shall commence such
pilot program no later than October 1, 2017, and shall terminate such
program no later than September 30, 2018.
(e) Reports.--If the Secretary carries out the pilot program under
subsection (a), the Secretary of Defense shall submit to the Committees
on Armed Services of the Senate and the House of Representatives reports
on the pilot program as follows:
(1) Not later than 90 days after the date of the enactment
of this Act, a report containing an implementation plan for the
pilot program.
(2) Not later than 180 days after the date on which the
pilot program commences, an interim report on the pilot program.
(3) Not later than 90 days after the date on which the pilot
program terminates, a final report describing the results of the
pilot program, including--
(A) any recommendations of the Secretary to expand
such program;
(B) an analysis of the changes in prescription drug
costs for the Department of Defense relating to the
pilot program;
(C) an analysis of the impact on beneficiary access
to prescription drugs;
(D) a survey of beneficiary satisfaction with the
pilot program; and

[[Page 2239]]

(E) a summary of any fraud and abuse activities
related to the pilot and actions taken in response by
the Department.
SEC. 744. <>  PILOT PROGRAM ON DISPLAY OF
WAIT TIMES AT URGENT CARE CLINICS AND
PHARMACIES OF MILITARY MEDICAL TREATMENT
FACILITIES.

(a) Pilot Program Authorized.--Beginning not later than one year
after the date of the enactment of this Act, the Secretary of Defense
shall carry out a pilot program for the display of wait times in urgent
care clinics and pharmacies of military medical treatment facilities
selected under subsection (b).
(b) Selection of Facilities.--
(1) Categories.--The Secretary shall select not fewer than
four military medical treatment facilities from each of the
following categories to participate in the pilot program:
(A) Medical centers.
(B) Hospitals.
(C) Ambulatory care centers.
(2) OCONUS locations.--Of the military medical treatment
facilities selected under each category described in
subparagraphs (A) through (C) of paragraph (1), not fewer than
one shall be located outside of the continental United States.
(3) Contractor-operated facilities.--The Secretary may
select Government-owned, contractor-operated facilities among
those military medical treatment facilities selected under
paragraph (1).

(c) Urgent Care Clinics.--
(1) Placement.--With respect to each military medical
treatment facility participating in the pilot program with an
urgent care clinic, the Secretary shall place in a conspicuous
location at the urgent care clinic an electronic sign that
displays the current average wait time determined under
paragraph (2) for a patient to be seen by a qualified medical
professional.
(2) Determination.--In carrying out paragraph (1), every 30
minutes, the Secretary shall determine the average wait time to
display under such paragraph by calculating, for the four-hour
period preceding the calculation, the average length of time
beginning at the time of the arrival of a patient at the urgent
care clinic and ending at the time at which the patient is first
seen by a qualified medical professional.

(d) Pharmacies.--
(1) Placement.--With respect to each military medical
treatment facility participating in the pilot program with a
pharmacy, the Secretary shall place in a conspicuous location at
the pharmacy an electronic sign that displays the current
average wait time to receive a filled prescription for a
pharmaceutical agent.
(2) Determination.--In carrying out paragraph (1), every 30
minutes, the Secretary shall determine the average wait time to
display under such paragraph by calculating, for the four-hour
period preceding the calculation, the average length of time
beginning at the time of submission by a patient of a
prescription for a pharmaceutical agent and ending at the time
at which the pharmacy dispenses the pharmaceutical agent to the
patient.

[[Page 2240]]

(e) Duration.--The Secretary shall carry out the pilot program for a
period that is not more than two years.
(f) Report.--
(1) Submission.--Not later than 90 days after the completion
of the pilot program, the Secretary shall submit to the
Committees on Armed Services of the House of Representatives and
the Senate a report on the pilot program.
(2) Elements.--The report under paragraph (1) shall
include--
(A) the costs for displaying the wait times under
subsections (c) and (d);
(B) any changes in patient satisfaction;
(C) any changes in patient behavior with respect to
using urgent care and pharmacy services;
(D) any changes in pharmacy operations and
productivity;
(E) a cost-benefit analysis of posting such wait
times; and
(F) the feasibility of expanding the posting of wait
times in emergency departments in military medical
treatment facilities.

(g) Qualified Medical Professional Defined.--In this section, the
term ``qualified medical professional'' means a doctor of medicine, a
doctor of osteopathy, a physician assistant, or an advanced registered
nurse practitioner.
SEC. 745. <>  REQUIREMENT TO REVIEW AND
MONITOR PRESCRIBING PRACTICES AT MILITARY
TREATMENT FACILITIES OF PHARMACEUTICAL
AGENTS FOR TREATMENT OF POST-TRAUMATIC
STRESS.

(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall--
(1) conduct a comprehensive review of the prescribing
practices at military treatment facilities of pharmaceutical
agents for the treatment of post-traumatic stress;
(2) implement a process or processes to monitor the
prescribing practices at military treatment facilities of
pharmaceutical agents that are discouraged from use under the
VA/DOD Clinical Practice Guideline for Management of Post-
Traumatic Stress; and
(3) implement a plan to address any deviations from such
guideline in prescribing practices of pharmaceutical agents for
management of post-traumatic stress at such facilities.

(b) Pharmaceutical Agent Defined.--In this section, the term
``pharmaceutical agent'' has the meaning given that term in section
1074g(g) of title 10, United States Code.
SEC. 746. DEPARTMENT OF DEFENSE STUDY ON PREVENTING THE DIVERSION
OF OPIOID MEDICATIONS.

(a) Study.--The Secretary of Defense shall conduct a study on the
feasibility and effectiveness in preventing the diversion of opioid
medications of the following measures:
(1) Requiring that, in appropriate cases, opioid medications
be dispensed in vials using affordable technologies designed to
prevent access to the medications by anyone other than the
intended patient, such as a vial with a locking-cap closure
mechanism.

[[Page 2241]]

(2) Providing education on the risks of opioid medications
to individuals for whom such medications are prescribed, and to
their families, with special consideration given to raising
awareness among adolescents on such risks.

(b) Briefing.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Secretary shall provide to the
Committees on Armed Services of the Senate and the House of
Representatives a briefing on the results of the study conducted
under subsection (a).
(2) Elements.--The briefing under paragraph (1) shall
include an assessment of the cost effectiveness of the measures
studied under subsection (a).
SEC. 747. INCORPORATION INTO SURVEY BY DEPARTMENT OF DEFENSE OF
QUESTIONS ON EXPERIENCES OF MEMBERS OF THE
ARMED FORCES WITH FAMILY PLANNING SERVICES
AND COUNSELING.

Not later than 90 days after the date of the enactment of this Act,
the Secretary of Defense shall initiate action to integrate into the
Health Related Behavior Survey of Active Duty Military Personnel
questions designed to obtain information on the experiences of members
of the Armed Forces--
(1) in accessing family planning services and counseling;
and
(2) in using family planning methods, including information
on which method was preferred and whether deployment conditions
affected the decision on which family planning method or methods
to be used.
SEC. 748. ASSESSMENT OF TRANSITION TO TRICARE PROGRAM BY FAMILIES
OF MEMBERS OF RESERVE COMPONENTS CALLED TO
ACTIVE DUTY AND ELIMINATION OF CERTAIN
CHARGES FOR SUCH FAMILIES.

(a) Assessment of Transition to TRICARE Program.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall
complete an assessment of the extent to which families of
members of the reserve components of the Armed Forces serving on
active duty pursuant to a call or order to active duty for a
period of more than 30 days experience difficulties in
transitioning from health care arrangements relied upon when the
member is not in such an active duty status to health care
benefits under the TRICARE program.
(2) Elements.--The assessment under paragraph (1) shall
address the following:
(A) The extent to which family members of members of
the reserve components of the Armed Forces are required
to change health care providers when they become
eligible for health care benefits under the TRICARE
program.
(B) The extent to which health care providers in the
private sector with whom such family members have
established relationships when not covered under the
TRICARE program are providers who--
(i) are in a preferred provider network under
the TRICARE program;
(ii) are participating providers under the
TRICARE program; or

[[Page 2242]]

(iii) will agree to treat covered
beneficiaries at a rate not to exceed 115 percent
of the maximum allowable charge under the TRICARE
program.
(C) The extent to which such family members
encounter difficulties associated with a change in
health care claims administration, health care
authorizations, or other administrative matters when
transitioning to health care benefits under the TRICARE
program.
(D) Any particular reasons for, or circumstances
that explain, the conditions described in subparagraphs
(A), (B), and (C).
(E) The effects of the conditions described in
subparagraphs (A), (B), and (C) on the health care
experience of such family members.
(F) Recommendations for changes in policies and
procedures under the TRICARE program, or other
administrative action by the Secretary, to remedy or
mitigate difficulties faced by such family members in
transitioning to health care benefits under the TRICARE
program.
(G) Recommendations for legislative action to remedy
or mitigate such difficulties.
(H) Such other matters as the Secretary determines
relevant to the assessment.
(3) Report.--
(A) In general.--Not later than 180 days after
completing the assessment under paragraph (1), the
Secretary shall submit to the Committees on Armed
Services of the Senate and the House of Representatives
a report detailing the results of the assessment.
(B) Analysis of recommendations.--The report
required by subparagraph (A) shall include an analysis
of each recommendation for legislative action addressed
under paragraph (2)(G), together with a cost estimate
for implementing each such action.

(b) Expansion of Authority To Eliminate Balance Billing.--Section
1079(h)(4)(C)(ii) of title 10, United States Code, is amended by
striking ``in support of a contingency operation under a provision of
law referred to in section 101(a)(13)(B) of this title''.
(c) Definitions.--In this section, the terms ``covered beneficiary''
and ``TRICARE program'' have the meanings given those terms in section
1072 of title 10, United States Code.
SEC. 749. <>  OVERSIGHT OF GRADUATE
MEDICAL EDUCATION PROGRAMS OF MILITARY
DEPARTMENTS.

(a) Process.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall establish and
implement a process to provide oversight of the graduate medical
education programs of the military departments to ensure that such
programs fully support the operational medical force readiness
requirements for health care providers of the Armed Forces and the
medical readiness of the Armed Forces. The process shall include the
following:
(1) A process to review such programs to ensure, to the
extent practicable, that such programs are--
(A) conducted jointly among the military
departments; and

[[Page 2243]]

(B) focused on, and related to, operational medical
force readiness requirements.
(2) A process to minimize duplicative programs relating to
such programs among the military departments.
(3) A process to ensure that--
(A) assignments of faculty, support staff, and
students within such programs are coordinated among the
military departments; and
(B) the Secretary optimizes resources by using
military medical treatment facilities as training
platforms when and where most appropriate.
(4) A process to review and, if necessary, restructure or
realign, such programs to sustain and improve operational
medical force readiness.

(b) Report.--Not later than 30 days after the date on which the
Secretary establishes the process under subsection (a), the Secretary
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report that describes such process. The
report shall include a description of each graduate medical education
program of the military departments, categorized by the following:
(1) Programs that provide direct support to operational
medical force readiness.
(2) Programs that provide indirect support to operational
medical force readiness.
(3) Academic programs that provide other medical support.

(c) Comptroller General Review and Report.--
(1) Review.--The Comptroller General of the United States
shall conduct a review of the process established under
subsection (a), including with respect to each process described
in paragraphs (1) through (4) of such subsection.
(2) Report.--Not later than 180 days after the date on which
the Secretary submits the report under subsection (b), the
Comptroller General shall submit to the Committees on Armed
Services of the Senate and the House of Representatives the
review conducted under paragraph (1), including an assessment of
the elements of the process established under subsection (a).
SEC. 750. STUDY ON HEALTH OF HELICOPTER AND TILTROTOR PILOTS.

(a) Study Required.--The Secretary of Defense shall carry out a
study of career helicopter and tiltrotor pilots to assess potential
links between the operation of helicopter and tiltrotor aircraft and
acute and chronic medical conditions experienced by such pilots.
(b) Elements.--The study under subsection (a) shall include the
following:
(1) A study of career helicopter and tiltrotor pilots
compared to a control population that--
(A) takes into account the amount of time such
pilots operated aircraft;
(B) examines the severity and rates of acute and
chronic injuries experienced by such pilots; and
(C) determines whether such pilots experience a
higher degree of acute and chronic medical conditions
than the control population.
(2) If a higher degree of acute and chronic medical
conditions is observed among such pilots, an explanation of--

[[Page 2244]]

(A) the specific causes of the conditions (such as
whole body vibration, seat and cockpit ergonomics,
landing loads, hard impacts, and pilot-worn gear); and
(B) any costs associated with treating the
conditions if the causes are not mitigated.
(3) A review of relevant scientific literature and prior
research.
(4) Such other information as the Secretary determines to be
appropriate.

(c) Duration.--The duration of the study under subsection (a) shall
be not more than two years.
(d) Report.--Not later than 30 days after the completion of the
study under subsection (a), the Secretary shall submit to the Committees
on Armed Services of the Senate and the House of Representatives a
report on the study.
SEC. 751. COMPTROLLER GENERAL REPORTS ON HEALTH CARE DELIVERY AND
WASTE IN MILITARY HEALTH SYSTEM.

(a) In General.--Not later than one year after the date of the
enactment of this Act, and not less frequently than once each year
thereafter for four years, the Comptroller General of the United States
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives a report assessing the delivery of health care
in the military health system, with an emphasis on identifying potential
waste and inefficiency.
(b) Elements.--
(1) In general.--The reports submitted under subsection (a)
shall, within the direct and purchased care components of the
military health system, evaluate the following:
(A) Processes for ensuring that health care
providers adhere to clinical practice guidelines.
(B) Processes for reporting and resolving adverse
medical events.
(C) Processes for ensuring program integrity by
identifying and resolving medical fraud and waste.
(D) Processes for coordinating care within and
between the direct and purchased care components of the
military health system.
(E) Procedures for administering the TRICARE
program.
(F) Processes for assessing and overseeing the
efficiency of clinical operations of military hospitals
and clinics, including access to care for covered
beneficiaries at such facilities.
(2) Additional information.--The reports submitted under
subsection (a) may include, if the Comptroller General considers
feasible--
(A) an estimate of the costs to the Department of
Defense relating to any waste or inefficiency identified
in the report; and
(B) such recommendations for action by the Secretary
of Defense as the Comptroller General considers
appropriate, including eliminating waste and
inefficiency in the direct and purchased care components
of the military health system.

[[Page 2245]]

(c) Definitions.--In this section, the terms ``covered beneficiary''
and ``TRICARE program'' have the meaning given those terms in section
1072 of title 10, United States Code.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

Subtitle A--Acquisition Policy and Management

Sec. 801. Rapid acquisition authority amendments.
Sec. 802. Authority for temporary service of Principal Military Deputies
to the Assistant Secretaries of the military departments for
acquisition as Acting Assistant Secretaries.
Sec. 803. Modernization of services acquisition.
Sec. 804. Defense Modernization Account amendments.

Subtitle B--Department of Defense Acquisition Agility

Sec. 805. Modular open system approach in development of major weapon
systems.
Sec. 806. Development, prototyping, and deployment of weapon system
components or technology.
Sec. 807. Cost, schedule, and performance of major defense acquisition
programs.
Sec. 808. Transparency in major defense acquisition programs.
Sec. 809. Amendments relating to technical data rights.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

Sec. 811. Modified restrictions on undefinitized contractual actions.
Sec. 812. Amendments relating to inventory and tracking of purchases of
services.
Sec. 813. Use of lowest price technically acceptable source selection
process.
Sec. 814. Procurement of personal protective equipment.
Sec. 815. Amendments related to detection and avoidance of counterfeit
electronic parts.
Sec. 816. Amendments to special emergency procurement authority.
Sec. 817. Compliance with domestic source requirements for footwear
furnished to enlisted members of the Armed Forces upon their
initial entry into the Armed Forces.
Sec. 818. Extension of authority for enhanced transfer of technology
developed at Department of Defense laboratories.
Sec. 819. Modified notification requirement for exercise of waiver
authority to acquire vital national security capabilities.
Sec. 820. Defense cost accounting standards.
Sec. 821. Increased micro-purchase threshold applicable to Department of
Defense procurements.
Sec. 822. Enhanced competition requirements.
Sec. 823. Revision to effective date of senior executive benchmark
compensation for allowable cost limitations.
Sec. 824. Treatment of independent research and development costs on
certain contracts.
Sec. 825. Exception to requirement to include cost or price to the
Government as a factor in the evaluation of proposals for
certain multiple-award task or delivery order contracts.
Sec. 826. Extension of program for comprehensive small business
contracting plans.
Sec. 827. Treatment of side-by-side testing of certain equipment,
munitions, and technologies manufactured and developed under
cooperative research and development agreements as use of
competitive procedures.
Sec. 828. Defense Acquisition Challenge Program amendments.
Sec. 829. Preference for fixed-price contracts.
Sec. 830. Requirement to use firm fixed-price contracts for foreign
military sales.
Sec. 831. Preference for performance-based contract payments.
Sec. 832. Contractor incentives to achieve savings and improve mission
performance.
Sec. 833. Sunset and repeal of certain contracting provisions.
Sec. 834. Flexibility in contracting award program.
Sec. 835. Protection of task order competition.
Sec. 836. Contract closeout authority.
Sec. 837. Closeout of old Department of the Navy contracts.

[[Page 2246]]

Subtitle D--Provisions Relating to Major Defense Acquisition Programs

Sec. 841. Change in date of submission to Congress of Selected
Acquisition Reports.
Sec. 842. Amendments relating to independent cost estimation and cost
analysis.
Sec. 843.  Revisions to Milestone B determinations.
Sec. 844. Review and report on sustainment planning in the acquisition
process.
Sec. 845. Revision to distribution of annual report on operational test
and evaluation.
Sec. 846. Repeal of major automated information systems provisions.
Sec. 847. Revisions to definition of major defense acquisition program.
Sec. 848. Acquisition strategy.
Sec. 849. Improved life-cycle cost control.
Sec. 850. Authority to designate increments or blocks of items delivered
under major defense acquisition programs as major subprograms
for purposes of acquisition reporting.
Sec. 851. Reporting of small business participation on Department of
Defense programs.
Sec. 852. Waiver of congressional notification for acquisition of
tactical missiles and munitions greater than quantity
specified in law.
Sec. 853. Multiple program multiyear contract pilot demonstration
program.
Sec. 854. Key performance parameter reduction pilot program.
Sec. 855. Mission integration management.

Subtitle E--Provisions Relating to Acquisition Workforce

Sec. 861. Project management.
Sec. 862. Authority to waive tenure requirement for program managers for
program definition and program execution periods.
Sec. 863. Purposes for which the Department of Defense Acquisition
Workforce Development Fund may be used; advisory panel
amendments.
Sec. 864. Department of Defense Acquisition Workforce Development Fund
determination adjustment.
Sec. 865. Limitations on funds used for staff augmentation contracts at
management headquarters of the Department of Defense and the
military departments.
Sec. 866. Senior Military Acquisition Advisors in the Defense
Acquisition Corps.
Sec. 867. Authority of the Secretary of Defense under the acquisition
demonstration project.

Subtitle F--Provisions Relating to Commercial Items

Sec. 871. Market research for determination of price reasonableness in
acquisition of commercial items.
Sec. 872. Value analysis for the determination of price reasonableness.
Sec. 873. Clarification of requirements relating to commercial item
determinations.
Sec. 874. Inapplicability of certain laws and regulations to the
acquisition of commercial items and commercially available
off-the-shelf items.
Sec. 875. Use of commercial or non-Government standards in lieu of
military specifications and standards.
Sec. 876. Preference for commercial services.
Sec. 877. Treatment of commingled items purchased by contractors as
commercial items.
Sec. 878. Treatment of services provided by nontraditional contractors
as commercial items.
Sec. 879. Defense pilot program for authority to acquire innovative
commercial items, technologies, and services using general
solicitation competitive procedures.
Sec. 880. Pilot programs for authority to acquire innovative commercial
items using general solicitation competitive procedures.

Subtitle G--Industrial Base Matters

Sec. 881. Greater integration of the national technology and industrial
base.
Sec. 882. Integration of civil and military roles in attaining national
technology and industrial base objectives.
Sec. 883. Pilot program for distribution support and services for weapon
systems contractors.
Sec. 884. Nontraditional and small contractor innovation prototyping
program.

Subtitle H--Other Matters

Sec. 885. Report on bid protests.
Sec. 886. Review and report on indefinite delivery contracts.
Sec. 887.  Review and report on contractual flow-down provisions.
Sec. 888. Requirement and review relating to use of brand names or
brand-name or equivalent descriptions in solicitations.

[[Page 2247]]

Sec. 889. Inclusion of information on common grounds for sustaining bid
protests in annual Government Accountability Office reports
to Congress.
Sec. 890. Study and report on contracts awarded to minority-owned and
women-owned businesses.
Sec. 891. Authority to provide reimbursable auditing services to certain
non-Defense Agencies.
Sec. 892. Selection of service providers for auditing services and audit
readiness services.
Sec. 893. Amendments to contractor business system requirements.
Sec. 894. Improved management practices to reduce cost and improve
performance of certain Department of Defense organizations.
Sec. 895. Exemption from requirement for capital planning and investment
control for information technology equipment included as
integral part of a weapon or weapon system.
Sec. 896. Modifications to pilot program for streamlining awards for
innovative technology projects.
Sec. 897. Rapid prototyping funds for the military departments.
Sec. 898. Establishment of Panel on Department of Defense and AbilityOne
Contracting Oversight, Accountability, and Integrity; Defense
Acquisition University training.
Sec. 899. Coast Guard major acquisition programs.
Sec. 899A. Enhanced authority to acquire products and services produced
in Africa in support of certain activities.

Subtitle A--Acquisition Policy and Management

SEC. 801. RAPID ACQUISITION AUTHORITY AMENDMENTS.

Section 806 of the Bob Stump National Defense Authorization Act for
Fiscal Year 2003 (Public Law 107-314; 10 U.S.C. 2302 note) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (A), by striking ``; or'' and
inserting a semicolon;
(B) in subparagraph (B), by striking ``; and'' and
inserting ``; or''; and
(C) by adding at the end the following new
subparagraph:
``(C) developed or procured under the rapid fielding or
rapid prototyping acquisition pathways under section 804 of the
National Defense Authorization Act for Fiscal Year 2016 (Public
Law 114-92; 10 U.S.C. 2302 note); and'';
(2) in subsection (b), by adding at the end the following
new paragraph:
``(3) Specific procedures in accordance with the guidance
developed under section 804(a) of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 2302 note).''; and
(3) in subsection (c)--
(A) in paragraph (2)(A)--
(i) by striking ``Whenever the Secretary'' and
inserting ``(i) Except as provided under clause
(ii), whenever the Secretary''; and
(ii) by adding at the end the following new
clause:
``(ii) Clause (i) does not apply to acquisitions initiated
in the case of a determination by the Secretary that funds are
necessary to immediately initiate a project under the rapid
fielding or rapid prototyping acquisition pathways under section
804 of the National Defense Authorization Act for Fiscal Year
2016 (Public Law 114-92; 10 U.S.C. 2302 note) if the designated

[[Page 2248]]

official for acquisitions using such pathways is the service
acquisition executive.'';
(B) in paragraph (3)--
(i) in subparagraph (A), by inserting ``or
upon the Secretary making a determination that
funds are necessary to immediately initiate a
project under the rapid fielding or rapid
prototyping acquisition pathways under section 804
of the National Defense Authorization Act for
Fiscal Year 2016 (Public Law 114-92; 10 U.S.C.
2302 note) based on a compelling national security
need,'' after ``of paragraph (1),'';
(ii) in subparagraph (B)--
(I) by striking ``The authority''
and inserting ``Except as provided under
subparagraph (C), the authority'';
(II) in clause (ii), by striking ``;
and'' and inserting a semicolon;
(III) in clause (iii), by striking
the period at the end and inserting ``;
and''; and
(IV) by adding at the end the
following new clause:
``(iv) in the case of a determination by the
Secretary that funds are necessary to immediately
initiate a project under the rapid fielding or rapid
prototyping acquisition pathways under section 804 of
the National Defense Authorization Act for Fiscal Year
2016 (Public Law 114-92; 10 U.S.C. 2302 note), in an
amount not more than $200,000,000 during any fiscal
year.''; and
(iii) by adding at the end the following new
subparagraph:
``(C) For each of fiscal years 2017 and 2018, the limits set
forth in clauses (i) and (ii) of subparagraph (B) do not apply
to the exercise of authority under such clauses provided that
the total amount of supplies and associated support services
acquired as provided under such subparagraph does not exceed
$800,000,000 during such fiscal year.'';
(C) in paragraph (4)--
(i) by redesignating subparagraphs (C), (D),
and (E) as subparagraphs (D), (E), and (F),
respectively; and
(ii) by inserting after subparagraph (B) the
following new subparagraph:
``(C) In the case of a determination by the Secretary under
paragraph (3)(A) that funds are necessary to immediately
initiate a project under the rapid fielding or rapid prototyping
acquisition pathways under section 804 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 2302 note), the Secretary shall notify the congressional
defense committees of the determination within 10 days after the
date of the use of such funds.''; and
(D) in paragraph (5)--
(i) by striking ``Any acquisition'' and
inserting ``(A) Any acquisition''; and
(ii) by adding at the end the following new
subparagraph:
``(B) Subparagraph (A) does not apply to acquisitions
initiated in the case of a determination by the Secretary that

[[Page 2249]]

funds are necessary to immediately initiate a project under the
rapid fielding or rapid prototyping acquisition pathways under
section 804 of the National Defense Authorization Act for Fiscal
Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note).''.
SEC. 802. AUTHORITY FOR TEMPORARY SERVICE OF PRINCIPAL MILITARY
DEPUTIES TO THE ASSISTANT SECRETARIES OF
THE MILITARY DEPARTMENTS FOR ACQUISITION
AS ACTING ASSISTANT SECRETARIES.

(a) Assistant Secretary of the Army for Acquisition, Logistics, and
Technology.--Section 3016(b)(5)(B) of title 10, United States Code, is
amended by adding at the end the following new sentence: ``In the event
of a vacancy in the position of Assistant Secretary of the Army for
Acquisition, Logistics, and Technology, the Principal Military Deputy
may serve as Acting Assistant Secretary for a period of not more than
one year.''.
(b) Assistant Secretary of the Navy for Research, Development, and
Acquisition.--Section 5016(b)(4)(B) of such title is amended by adding
at the end the following new sentence: ``In the event of a vacancy in
the position of Assistant Secretary of the Navy for Research,
Development, and Acquisition, the Principal Military Deputy may serve as
Acting Assistant Secretary for a period of not more than one year.''.
(c) Assistant Secretary of the Air Force for Acquisition.--Section
8016(b)(4)(B) of such title is amended by adding at the end the
following new sentence: ``In the event of a vacancy in the position of
Assistant Secretary of the Air Force for Acquisition, the Principal
Military Deputy may serve as Acting Assistant Secretary for a period of
not more than one year.''.
SEC. 803. <>  MODERNIZATION OF SERVICES
ACQUISITION.

(a) Review of Services Acquisition Categories.--Not later than 180
days after the date of the enactment of this Act, the Secretary of
Defense shall review and, if necessary, revise Department of Defense
Instruction 5000.74, dated January 5, 2016 (in this section referred to
as the ``Acquisition of Services Instruction''), and other guidance
pertaining to the acquisition of services. In conducting the review, the
Secretary shall examine--
(1) how the acquisition community should consider the
changing nature of the technology and professional services
markets, particularly the convergence of hardware and services;
and
(2) the services acquisition portfolio groups referenced in
the Acquisition of Services Instruction and other guidance in
order to ensure the portfolio groups are fully reflective of
changes to the technology and professional services market.

(b) <>  Guidance Regarding Training and
Development of the Acquisition Workforce.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall issue
guidance addressing the training and development of the
Department of Defense workforce engaged in the procurement of
services, including those personnel not designated as members of
the acquisition workforce.
(2) Identification of training and professional development
opportunities and alternatives.--The guidance required under
paragraph (1) shall identify training and professional
development opportunities and alternatives, not

[[Page 2250]]

limited to existing Department of Defense institutions, that
focus on and provide relevant training and professional
development in commercial business models and contracting.
(3) Treatment of training and professional development.--Any
training and professional development provided pursuant to this
subsection outside Department of Defense institutions shall be
deemed to be equivalent to similar training certified or
provided by the Defense Acquisition University.
SEC. 804. DEFENSE MODERNIZATION ACCOUNT AMENDMENTS.

(a) Funds Available for Account.--Section 2216(b)(1) of title 10,
United States Code, is amended by striking ``commencing''.
(b) Transfers to Account.--Section 2216(c) of such title is
amended--
(1) in paragraph (1)(A)--
(A) by striking ``or the Secretary of Defense with
respect to Defense-wide appropriations accounts'' and
inserting ``, or the Secretary of Defense with respect
to Defense-wide appropriations accounts,''; and
(B) by striking ``that Secretary'' and inserting
``the Secretary concerned'';
(2) in paragraph (1)(B)--
(A) by inserting after ``following funds'' the
following: ``that have been appropriated for fiscal
years after fiscal year 2016 and are'';
(B) in clause (i)--
(i) by striking ``for procurement'' and
inserting ``for new obligations'';
(ii) by striking ``a particular procurement''
and inserting ``an acquisition program''; and
(iii) by striking ``that procurement'' and
inserting ``that program'';
(C) by striking clause (ii); and
(D) by redesignating clause (iii) as clause (ii);
(3) in paragraph (2)--
(A) by striking ``, other than funds referred to in
subparagraph (B)(iii) of such paragraph,''; and
(B) by striking ``if--'' and all that follows
through ``(B) the balance of funds'' and inserting ``if
the balance of funds'';
(4) in paragraph (3)--
(A) by striking ``credited to'' both places it
appears and inserting ``deposited in''; and
(B) by inserting ``and obligation'' after
``available for transfer''; and
(5) by striking paragraph (4).

(c) Authorized Use of Funds.--Section 2216(d) of such title is
amended--
(1) in paragraph (1)--
(A) by striking ``commencing''; and
(B) by striking ``Secretary of Defense'' and
inserting ``Secretary concerned'';
(2) in paragraph (2), by striking ``a procurement program''
and inserting ``an acquisition program'';
(3) by amending paragraph (3) to read as follows:
``(3) For research, development, test, and evaluation, for
procurement, and for sustainment activities necessary for paying
costs of unforeseen contingencies that are approved

[[Page 2251]]

by the milestone decision authority concerned, that could
prevent an ongoing acquisition program from meeting critical
schedule or performance requirements.''; and
(4) by inserting at the end the following new paragraph:
``(4) For paying costs of changes to program requirements or
system configuration that are approved by the configuration
steering board for a major defense acquisition program.''.

(d) Limitations.--Section 2216(e) of such title is amended--
(1) in paragraph (1), by striking ``procurement program''
both places it appears and inserting ``acquisition program'';
and
(2) in paragraph (2), by striking ``authorized
appropriations'' and inserting ``authorized appropriations,
unless the procedures for initiating a new start program are
complied with''.

(e) Transfer of Funds.--Section 2216(f)(1) of such title is amended
by striking ``Secretary of Defense'' and inserting ``Secretary of a
military department, or the Secretary of Defense with respect to
Defense-wide appropriations accounts,''.
(f) Availability of Funds by Appropriation.--Section 2216(g) of such
title is amended--
(1) by striking ``in accordance with the provisions of
appropriations Acts''; and
(2) by adding at the end the following: ``Funds deposited in
the Defense Modernization Account shall remain available for
obligation until the end of the third fiscal year that follows
the fiscal year in which the amounts are deposited in the
account.''.

(g) Secretary to Act Through Comptroller.--Section 2216(h)(2) of
such title is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (B), (C), and (D), respectively;
(2) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph (A):
``(A) the establishment and management of
subaccounts for each of the military departments and
Defense Agencies concerned for the use of funds in the
Defense Modernization Account, consistent with each
military department's or Defense Agency's deposits in
the Account;'';
(3) in subparagraph (C), as so redesignated, by inserting
``and subaccounts'' after ``Account''; and
(4) in subparagraph (D), as so redesignated, by striking
``subsection (c)(1)(B)(iii)'' and inserting ``subsection
(c)(1)(B)(ii)''.

(h) Definitions.--Paragraph (1) of section 2216(i) of such title is
amended to read as follows:
``(1) The term `major defense acquisition program' has the
meaning given the term in section 2430(a) of this title.''.

(j) Expiration of Authority.--Section 2216(j)(1) of such title is
amended by striking ``terminates at the close of September 30, 2006''
and inserting ``terminates at the close of September 30, 2022''.

[[Page 2252]]

Subtitle B--Department of Defense Acquisition Agility

SEC. 805. MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF MAJOR
WEAPON SYSTEMS.

(a) Modular Open System Approach.--
(1) In general.--Part IV of subtitle A of title 10, United
States Code, <> is amended by
inserting after chapter 144A the following new chapter:

``CHAPTER 144B--WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS

``Subchapter                                                        Sec.
``I. Modular Open System Approach in Development of Weapon Systems 2446a
``II. Development, Prototyping, and Deployment of Weapon System
Components and Technology......................................... 2447a
``III. Cost, Schedule, and Performance of Major Defense
Acquisition Programs.............................................. 2448a

``SUBCHAPTER <>  I--MODULAR OPEN SYSTEM
APPROACH IN DEVELOPMENT OF WEAPON SYSTEMS

``Sec.
``2446a. Requirement for modular open system approach in major defense
acquisition programs; definitions.
``2446b. Requirement to address modular open system approach in program
capabilities development and acquisition weapon system
design.
``2446c. Requirements relating to availability of major system
interfaces and support for modular open system approach.

``Sec. 2446a. <>  Requirement for modular
open system approach in major defense
acquisition programs; definitions

``(a) Modular Open System Approach Requirement.--A major defense
acquisition program that receives Milestone A or Milestone B approval
after January 1, 2019, shall be designed and developed, to the maximum
extent practicable, with a modular open system approach to enable
incremental development and enhance competition, innovation, and
interoperability.
``(b) Definitions.--In this chapter:
``(1) The term `modular open system approach' means, with
respect to a major defense acquisition program, an integrated
business and technical strategy that--
``(A) employs a modular design that uses major
system interfaces between a major system platform and a
major system component, between major system components,
or between major system platforms;
``(B) is subjected to verification to ensure major
system interfaces comply with, if available and
suitable, widely supported and consensus-based
standards;
``(C) uses a system architecture that allows
severable major system components at the appropriate
level to be incrementally added, removed, or replaced
throughout the life cycle of a major system platform to
afford opportunities for enhanced competition and
innovation while yielding--
``(i) significant cost savings or avoidance;
``(ii) schedule reduction;

[[Page 2253]]

``(iii) opportunities for technical upgrades;
``(iv) increased interoperability, including
system of systems interoperability and mission
integration; or
``(v) other benefits during the sustainment
phase of a major weapon system; and
``(D) complies with the technical data rights set
forth in section 2320 of this title.
``(2) The term `major system platform' means the highest
level structure of a major weapon system that is not physically
mounted or installed onto a higher level structure and on which
a major system component can be physically mounted or installed.
``(3) The term `major system component'--
``(A) means a high level subsystem or assembly,
including hardware, software, or an integrated assembly
of both, that can be mounted or installed on a major
system platform through well-defined major system
interfaces; and
``(B) includes a subsystem or assembly that is
likely to have additional capability requirements, is
likely to change because of evolving technology or
threat, is needed for interoperability, facilitates
incremental deployment of capabilities, or is expected
to be replaced by another major system component.
``(4) The term `major system interface'--
``(A) means a shared boundary between a major system
platform and a major system component, between major
system components, or between major system platforms,
defined by various physical, logical, and functional
characteristics, such as electrical, mechanical,
fluidic, optical, radio frequency, data, networking, or
software elements; and
``(B) is characterized clearly in terms of form,
function, and the content that flows across the
interface in order to enable technological innovation,
incremental improvements, integration, and
interoperability.
``(5) The term `program capability document' means, with
respect to a major defense acquisition program, a document that
specifies capability requirements for the program, such as a
capability development document or a capability production
document.
``(6) The terms `program cost targets' and `fielding target'
have the meanings provided in section 2448a(a) of this title.
``(7) The term `major defense acquisition program' has the
meaning provided in section 2430 of this title.
``(8) The term `major weapon system' has the meaning
provided in section 2379(f) of this title.
``Sec. 2446b. <>  Requirement to address
modular open system approach in program
capabilities development and acquisition
weapon system design

``(a) Program Capability Document.--A program capability document
for a major defense acquisition program shall identify and
characterize--
``(1) the extent to which requirements for system
performance are likely to evolve during the life cycle of the
system

[[Page 2254]]

because of evolving technology, threat, or interoperability
needs; and
``(2) for requirements that are expected to evolve, the
minimum acceptable capability that is necessary for initial
operating capability of the major defense acquisition program.

``(b) Analysis of Alternatives.--The Director of Cost Assessment and
Performance Evaluation, in formulating study guidance for analyses of
alternatives for major defense acquisition programs and performing such
analyses under section 139a(d)(4) of this title, shall ensure that any
such analysis for a major defense acquisition program includes
consideration of evolutionary acquisition, prototyping, and a modular
open system approach.
``(c) Acquisition Strategy.--In the case of a major defense
acquisition program that uses a modular open system approach, the
acquisition strategy required under section 2431a of this title shall--
``(1) clearly describe the modular open system approach to
be used for the program;
``(2) differentiate between the major system platform and
major system components being developed under the program, as
well as major system components developed outside the program
that will be integrated into the major defense acquisition
program;
``(3) clearly describe the evolution of major system
components that are anticipated to be added, removed, or
replaced in subsequent increments;
``(4) identify additional major system components that may
be added later in the life cycle of the major system platform;
``(5) clearly describe how intellectual property and related
issues, such as technical data deliverables, that are necessary
to support a modular open system approach, will be addressed;
and
``(6) clearly describe the approach to systems integration
and systems-level configuration management to ensure mission and
information assurance.

``(d) Request for Proposals.--The milestone decision authority for a
major defense acquisition program that uses a modular open system
approach shall ensure that a request for proposals for the development
or production phases of the program shall describe the modular open
system approach and the minimum set of major system components that must
be included in the design of the major defense acquisition program.
``(e) Milestone B.--A major defense acquisition program may not
receive Milestone B approval under section 2366b of this title until the
milestone decision authority determines in writing that--
``(1) in the case of a program that uses a modular open
system approach--
``(A) the program incorporates clearly defined major
system interfaces between the major system platform and
major system components, between major system
components, and between major system platforms;
``(B) such major system interfaces are consistent
with the widely supported and consensus-based standards
that exist at the time of the milestone decision, unless
such standards are unavailable or unsuitable for
particular major system interfaces; and

[[Page 2255]]

``(C) the Government has arranged to obtain
appropriate and necessary intellectual property rights
with respect to such major system interfaces upon
completion of the development of the major system
platform; or
``(2) in the case of a program that does not use a modular
open system approach, that the use of a modular open system
approach is not practicable.
``Sec. 2446c. <>  Requirements relating to
availability of major system interfaces and
support for modular open system approach

``The Secretary of each military department shall--
``(1) coordinate with the other military departments, the
defense agencies, defense and other private sector entities,
national standards-setting organizations, and, when appropriate,
with elements of the intelligence community with respect to the
specification, identification, development, and maintenance of
major system interfaces and standards for use in major system
platforms, where practicable;
``(2) ensure that major system interfaces incorporate
commercial standards and other widely supported consensus-based
standards that are validated, published, and maintained by
recognized standards organizations to the maximum extent
practicable;
``(3) ensure that sufficient systems engineering and
development expertise and resources are available to support the
use of a modular open system approach in requirements
development and acquisition program planning;
``(4) ensure that necessary planning, programming, and
budgeting resources are provided to specify, identify, develop,
and sustain the modular open system approach, associated major
system interfaces, systems integration, and any additional
program activities necessary to sustain innovation and
interoperability; and
``(5) ensure that adequate training in the use of a modular
open system approach is provided to members of the requirements
and acquisition workforce.''.
(2) <>  Clerical
amendment.--The table of chapters for title 10, United States
Code, is amended by adding after the item relating to chapter
144A the following new item:

``144B. Weapon Systems Development and Related Matters..........2446a''.

(3) Conforming amendment.--Section 2366b(a)(3) of such title
is amended--
(A) by striking ``and'' at the end of subparagraph
(K); and
(B) by inserting after subparagraph (L) the
following new subparagraph:
``(M) the requirements of section 2446b(e) of this
title are met; and''.
(4) <>  Effective date.--
Subchapter I of chapter 144B of title 10, United States Code, as
added by paragraph (1), shall take effect on January 1, 2017.

(b) Requirement to Include Modular Open System Approach in Selected
Acquisition Reports.--Section 2432(c)(1) of such title is amended--
(1) by striking ``and'' at the end of subparagraph (F);

[[Page 2256]]

(2) by redesignating subparagraph (G) as subparagraph (H);
and
(3) by inserting after subparagraph (F) the following new
subparagraph (G):
``(G) for each major defense acquisition program that
receives Milestone B approval after January 1, 2019, a brief
summary description of the key elements of the modular open
system approach as defined in section 2446a of this title or, if
a modular open system approach was not used, the rationale for
not using such an approach; and''.
SEC. 806. DEVELOPMENT, PROTOTYPING, AND DEPLOYMENT OF WEAPON
SYSTEM COMPONENTS OR TECHNOLOGY.

(a) Development, Prototyping, and Deployment of Weapon System
Components or Technology.--
(1) In general.--Chapter 144B of title 10, United States
Code, as added by section 805, is further amended by adding at
the end the following new subchapter:

``SUBCHAPTER <>  II--DEVELOPMENT, PROTOTYPING,
AND DEPLOYMENT OF WEAPON SYSTEM COMPONENTS OR TECHNOLOGY

``Sec.
``2447a. Weapon system component or technology prototype projects:
display of budget information.
``2447b. Weapon system component or technology prototype projects:
oversight.
``2447c. Requirements and limitations for weapon system component or
technology prototype projects.
``2447d. Mechanisms to speed deployment of successful weapon system
component or technology prototypes.
``2447e. Definition of weapon system component.

``Sec. 2447a. <>  Weapon system component or
technology prototype projects: display of
budget information

``(a) Requirements for Budget Display.--In the defense budget
materials for any fiscal year after fiscal year 2017, the Secretary of
Defense shall, with respect to advanced component development and
prototype activities (within the research, development, test, and
evaluation budget), set forth the amounts requested for each of the
following:
``(1) Acquisition programs of record.
``(2) Development, prototyping, and experimentation of
weapon system components or other technologies, including those
based on commercial items and technologies, separate from
acquisition programs of record.
``(3) Other budget line items as determined by the Secretary
of Defense.

``(b) Additional Requirements.--For purposes of subsection (a)(2),
the amounts requested for development, prototyping, and experimentation
of weapon system components or other technologies shall be--
``(1) structured into either capability, weapon system
component, or technology portfolios that reflect the priority
areas for prototype projects; and
``(2) justified with general descriptions of the types of
capability areas and technologies being funded or expected to be
funded during the fiscal year concerned.

[[Page 2257]]

``(c) Definitions.--In this section, the terms `budget' and `defense
budget materials' have the meaning given those terms in section 234 of
this title.
``Sec. 2447b. <>  Weapon system component or
technology prototype projects: oversight

``(a) Establishment.--The Secretary of each military department
shall establish an oversight board or identify a similar existing group
of senior advisors for managing prototype projects for weapon system
components and other technologies and subsystems, including the use of
funds for such projects, within the military department concerned.
``(b) Membership.--Each oversight board shall be comprised of senior
officials with--
``(1) expertise in requirements; research, development,
test, and evaluation; acquisition; sustainment; or other
relevant areas within the military department concerned;
``(2) awareness of technology development activities and
opportunities in the Department of Defense, industry, and other
sources; and
``(3) awareness of the component capability requirements of
major weapon systems, including scheduling and fielding goals
for such component capabilities.

``(c) Functions.--The functions of each oversight board are as
follows:
``(1) To issue a strategic plan every three years that
prioritizes the capability and weapon system component portfolio
areas for conducting prototype projects, based on assessments
of--
``(A) high priority warfighter needs;
``(B) capability gaps or readiness issues with major
weapon systems;
``(C) opportunities to incrementally integrate new
components into major weapon systems based on commercial
technology or science and technology efforts that are
expected to be sufficiently mature to prototype within
three years; and
``(D) opportunities to reduce operation and support
costs of major weapon systems.
``(2) To annually recommend funding levels for weapon system
component or technology development and prototype projects
across capability or weapon system component portfolios.
``(3) To annually recommend to the service acquisition
executive of the military department concerned specific weapon
system component or technology development and prototype
projects, subject to the requirements and limitations in section
2447c of this title.
``(4) To ensure projects are managed by experts within the
Department of Defense who are knowledgeable in research,
development, test, and evaluation and who are aware of
opportunities for incremental deployment of component
capabilities and other technologies to major weapon systems or
directly to support warfighting capabilities.
``(5) To ensure projects are conducted in a manner that
allows for appropriate experimentation and technology risk.

[[Page 2258]]

``(6) To ensure projects have a plan for technology
transition of the prototype into a fielded system, program of
record, or operational use, as appropriate, upon successful
achievement of technical and project goals.
``(7) To ensure necessary technical, contracting, and
financial management resources are available to support each
project.
``(8) To submit to the congressional defense committees a
semiannual notification that includes the following:
``(A) each weapon system component or technology
prototype project initiated during the preceding six
months, including an explanation of each project and its
required funding.
``(B) the results achieved from weapon system
component prototype and technology projects completed
and tested during the preceding six months.
``Sec. 2447c. <>  Requirements and
limitations for weapon system component or
technology prototype projects

``(a) Limitation on Prototype Project Duration.--A prototype project
shall be completed within two years of its initiation.
``(b) Merit-based Selection Process.--A prototype project shall be
selected by the service acquisition executive of the military department
concerned through a merit-based selection process that identifies the
most promising, innovative, and cost-effective prototypes that address
one or more of the elements set forth in subsection (c)(1) of section
2447b of this title and are expected to be successfully demonstrated in
a relevant environment.
``(c) Type of Transaction.--Prototype projects shall be funded
through contracts, cooperative agreements, or other transactions.
``(d) Funding Limit.--(1) Each prototype project may not exceed a
total amount of $10,000,000 (based on fiscal year 2017 constant
dollars), unless--
``(A) the Secretary of the military department, or the
Secretary's designee, approves a larger amount of funding for
the project, not to exceed $50,000,000; and
``(B) the Secretary, or the Secretary's designee, submits to
the congressional defense committees, within 30 days after
approval of such funding for the project, a notification that
includes--
``(i) the project;
``(ii) expected funding for the project; and
``(iii) a statement of the anticipated outcome of
the project.

``(2) The Secretary of Defense may adjust the amounts (and the base
fiscal year) provided in paragraph (1) on the basis of Department of
Defense escalation rates.
``(e) Related Prototype Authorities.--Prototype projects that exceed
the duration and funding limits established in this section shall be
pursued under the rapid prototyping process established by section 804
of the National Defense Authorization Act for Fiscal Year 2016 (Public
Law 114-92; 10 U.S.C. 2302 note). In addition, nothing in this
subchapter shall affect the authority to carry out prototype projects
under section 2371b or any other section of this title related to
prototyping.

[[Page 2259]]

``Sec. 2447d. <>  Mechanisms to speed
deployment of successful weapon system
component or technology prototypes

``(a) Selection of Prototype Project for Production and Rapid
Fielding.--A weapon system component or technology prototype project may
be selected by the service acquisition executive of the military
department concerned for a follow-on production contract or other
transaction without the use of competitive procedures, notwithstanding
the requirements of section 2304 of this title, if--
``(1) the follow-on production project addresses a high
priority warfighter need or reduces the costs of a weapon
system;
``(2) competitive procedures were used for the selection of
parties for participation in the original prototype project;
``(3) the participants in the original prototype project
successfully completed the requirements of the project; and
``(4) a prototype of the system to be procured was
demonstrated in a relevant environment.

``(b) Special Transfer Authority.--(1) The Secretary of a military
department may, as specified in advance by appropriations Acts, transfer
funds that remain available for obligation in procurement appropriation
accounts of the military department to fund the low-rate initial
production of the rapid fielding project until required funding for
full-rate production can be submitted and approved through the regular
budget process of the Department of Defense.
``(2) The funds transferred under this subsection to fund the low-
rate initial production of a rapid fielding project shall be for a
period not to exceed two years, the amount for such period may not
exceed $50,000,000, and the special transfer authority provided in this
subsection may not be used more than once to fund procurement of a
particular new or upgraded system.
``(3) The special transfer authority provided in this subsection is
in addition to any other transfer authority available to the Department
of Defense.
``(c) Notification to Congress.--Within 30 days after the service
acquisition executive of a military department selects a weapon system
component or technology project for a follow-on production contract or
other transaction, the service acquisition executive shall notify the
congressional defense committees of the selection and provide a brief
description of the rapid fielding project.
``Sec. 2447e. <>  Definition of weapon system
component

``In this subchapter, the term `weapon system component' has the
meaning given the term `major system component' in section 2446a of this
title.''.
(2) <>  Effective date.--
Subchapter II of chapter 144B of title 10, United States Code,
as added by paragraph (1), shall take effect on January 1, 2017.

(b) Addition to Requirements Needed Before Milestone A Approval.--
Section 2366a(b) of such title is amended--
(1) by striking ``and'' at the end of paragraph (7);
(2) by redesignating paragraph (8) as paragraph (9); and
(3) by inserting after paragraph (7) the following new
paragraph (8):
``(8) that, with respect to a program initiated after
January 1, 2019, technology shall be developed in the program
(after

[[Page 2260]]

Milestone A approval) only if the milestone decision authority
determines with a high degree of confidence that such
development will not delay the fielding target of the program,
or, if the milestone decision authority does not make such
determination for a major system component being developed under
the program, the milestone decision authority ensures that the
technology related to the major system component shall be
sufficiently matured and demonstrated in a relevant environment
(after Milestone A approval) separate from the program using the
prototyping authorities in subchapter II of chapter 144B of this
title or other authorities, as appropriate, and have an
effective plan for adoption or insertion by the relevant
program; and''.
SEC. 807. COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE
ACQUISITION PROGRAMS.

(a) Cost, Schedule, and Performance of Major Defense Acquisition
Programs.--
(1) In general.--Chapter 144B of title 10, United States
Code, as added by section 805, <> is
amended by adding at the end the following new subchapter:

``SUBCHAPTER III--COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE
ACQUISITION PROGRAMS

``Sec.
``2448a. Program cost, fielding, and performance goals in planning major
defense acquisition programs.
``2448b. Independent technical risk assessments.

``Sec. 2448a. <>  Program cost, fielding, and
performance goals in planning major defense
acquisition programs

``(a) Program Cost and Fielding Targets.--(1) Before funds are
obligated for technology development, systems development, or production
of a major defense acquisition program, the Secretary of Defense shall
ensure, by establishing the goals described in paragraph (2), that the
milestone decision authority for the major defense acquisition program
approves a program that will--
``(A) be affordable;
``(B) incorporate program planning that anticipates the
evolution of capabilities to meet changing threats, technology
insertion, and interoperability; and
``(C) be fielded when needed.

``(2) The goals described in this paragraph are goals for--
``(A) the procurement unit cost and sustainment cost
(referred to in this section as the `program cost targets');
``(B) the date for initial operational capability (referred
to in this section as the `fielding target'); and
``(C) technology maturation, prototyping, and a modular open
system approach to evolve system capabilities and improve
interoperability.

``(b) Delegation.--The responsibilities of the Secretary of Defense
in subsection (a) may be delegated only to the Deputy Secretary of
Defense.
``(c) Definitions.--In this section:
``(1) The term `procurement unit cost' has the meaning
provided in section 2432(a)(2) of this title.

[[Page 2261]]

``(2) The term `initial capabilities document' has the
meaning provided in section 2366a(d)(2) of this title.
``Sec. 2448b. <>  Independent technical risk
assessments

``(a) In General.--With respect to a major defense acquisition
program, the Secretary of Defense shall ensure that an independent
technical risk assessment is conducted--
``(1) before any decision to grant Milestone A approval for
the program pursuant to section 2366a of this title, that
identifies critical technologies and manufacturing processes
that need to be matured; and
``(2) before any decision to grant Milestone B approval for
the program pursuant to section 2366b of this title, any
decision to enter into low-rate initial production or full-rate
production, or at any other time considered appropriate by the
Secretary, that includes the identification of any critical
technologies or manufacturing processes that have not been
successfully demonstrated in a relevant environment.

``(b) Categorization of Technical Risk Levels.--The Secretary shall
issue guidance and a framework for categorizing the degree of technical
and manufacturing risk in a major defense acquisition program.''.
(2) <>  Effective date.--
Subchapter III of chapter 144B of title 10, United States Code,
as added by paragraph (1), shall apply with respect to major
defense acquisition programs that reach Milestone A after
October 1, 2017.

(b) <>  Modification of Milestone Decision
Authority.--Effective January 1, 2017, subsection (d) of section 2430 of
title 10, United States Code, as added by section 825(a) of the National
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129
Stat. 907), is amended--
(1) in paragraph (2)(A), by inserting ``subject to paragraph
(5),'' before ``the Secretary determines''; and
(2) by adding at the end the following new paragraph:

``(5) The authority of the Secretary of Defense to designate an
alternative milestone decision authority for a program with respect to
which the Secretary determines that the program is addressing a joint
requirement, as set forth in paragraph (2)(A), shall apply only for a
major defense acquisition program that reaches Milestone A after October
1, 2016, and before October 1, 2019.''.
(c) Adherence to Requirements in Major Defense Acquisition
Programs.--Section 2547 of title 10, United States Code, is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively;
(2) by inserting after subsection (a) the following new
subsection (b):

``(b) Adherence to Requirements in Major Defense Acquisition
Programs.--The Secretary of the military department concerned shall
ensure that the program capability document supporting a Milestone B or
subsequent decision for a major defense acquisition program may not be
approved until the chief of the armed force concerned determines in
writing that the requirements in the document are necessary and
realistic in relation to the program cost and fielding targets
established under section 2448a(a) of this title.''; and

[[Page 2262]]

(3) by adding at the end of subsection (d), as so
redesignated, the following new paragraph:
``(3) The term `program capability document' has the meaning
provided in section 2446a(b)(5) of this title.''.

(d) Amendment Relating to Determination Required Before Milestone A
Approval.--Section 2366a(b)(4) of title 10, United States Code, is
amended by inserting after ``areas of risk'' the following: ``,
including risks determined by the identification of critical
technologies required under section 2448b(a)(1) of this title or any
other risk assessment''.
(e) Amendment Relating to Certification Required Before Milestone B
Approval.--Section 2366b(a) of title 10, United States Code, is
amended--
(1) in paragraph (2), by striking ``assessment by the
Assistant Secretary'' and all that follows through ``Test and
Evaluation'' and inserting ``technical risk assessment conducted
under section 2448b of this title''; and
(2) in paragraph (3), as amended by section 805(a)(3)(B)--
(A) by striking ``and'' at the end of subparagraph
(C);
(B) by redesignating subparagraphs (D) through (M)
as subparagraphs (E) through (N), respectively; and
(C) by inserting after subparagraph (C) the
following new subparagraph (D):
``(D) the estimated procurement unit cost for the
program and the estimated date for initial operational
capability for the baseline description for the program
(established under section 2435) do not exceed the
program cost and fielding targets established under
section 2448a(a) of this title, or, if such estimated
cost is higher than the program cost targets or if such
estimated date is later than the fielding target, the
program cost targets have been increased or the fielding
target has been delayed by the Secretary of Defense
after a request for such increase or delay by the
milestone decision authority;''.
SEC. 808. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION PROGRAMS.

(a) Milestone A Report.--
(1) In general.--Section 2366a(c) of title 10, United States
Code, is amended to read as follows:

``(c) Submissions to Congress on Milestone A.--
``(1) Brief summary report.--Not later than 15 days after
granting Milestone A approval for a major defense acquisition
program, the milestone decision authority for the program shall
provide to the congressional defense committees and, in the case
of intelligence or intelligence-related activities, the
congressional intelligence committees a brief summary report
that contains the following elements:
``(A) The program cost and fielding targets
established by the Secretary of Defense under section
2448a(a) of this title.
``(B) The estimated cost and schedule for the
program established by the military department
concerned, including--
``(i) the dollar values estimated for the
program acquisition unit cost and total life-cycle
cost; and

[[Page 2263]]

``(ii) the planned dates for each program
milestone and initial operational capability.
``(C) The independent estimated cost for the program
established pursuant to section 2334(a)(6) of this
title, and any independent estimated schedule for the
program, including--
``(i) as assessment of the major contributors
to the program acquisition unit cost and total
life-cycle cost; and
``(ii) the planned dates for each program
milestone and initial operational capability.
``(D) A summary of the technical or manufacturing
risks associated with the program, as determined by the
military department concerned, including identification
of any critical technologies or manufacturing processes
that need to be matured.
``(E) A summary of the independent technical risk
assessment conducted or approved under section 2448b of
this title, including identification of any critical
technologies or manufacturing processes that need to be
matured.
``(F) A summary of any sufficiency review conducted
by the Director of Cost Assessment and Program
Evaluation of the analysis of alternatives performed for
the program (as referred to in section 2366a(b)(6) of
this title).
``(G) Any other information the milestone decision
authority considers relevant.
``(2) Additional information.--(A) At the request of any of
the congressional defense committees or, in the case of
intelligence or intelligence-related activities, the
congressional intelligence committees, the milestone decision
authority shall submit to the committee an explanation of the
basis for a determination made under subsection (b) with respect
to a major defense acquisition program, together with a copy of
the written determination, or further information or underlying
documentation for the information in a brief summary report
submitted under paragraph (1), including the independent cost
and schedule estimates and the independent technical risk
assessments referred to in that paragraph.
``(B) The explanation or information shall be submitted in
unclassified form, but may include a classified annex.''.
(2) Definitions.--Section 2366a(d) of such title is amended
by adding at the end the following new paragraphs:
``(8) The term `fielding target' has the meaning given that
term in section 2448a(a) of this title.
``(9) The term `major system component' has the meaning
given that term in section 2446a(b)(3) of this title.
``(10) The term `congressional intelligence committees' has
the meaning given that term in section 437(c) of this title.''.

(b) Milestone B Report.--
(1) In general.--Section 2366b(c) of title 10, United States
Code, is amended to read as follows:

``(c) Submissions to Congress on Milestone B.--
``(1) Brief summary report.--Not later than 15 days after
granting Milestone B approval for a major defense acquisition
program, the milestone decision authority for the program shall
provide to the congressional defense committees and, in the

[[Page 2264]]

case of intelligence or intelligence-related activities, the
congressional intelligence committees a brief summary report
that contains the following elements:
``(A) The program cost and fielding targets
established by the Secretary of Defense under section
2448a(a) of this title.
``(B) The estimated cost and schedule for the
program established by the military department
concerned, including--
``(i) the dollar values estimated for the
program acquisition unit cost, average procurement
unit cost, and total life-cycle cost; and
``(ii) the planned dates for each program
milestone, initial operational test and
evaluation, and initial operational capability.
``(C) The independent estimated cost for the program
established pursuant to section 2334(a)(6) of this
title, and any independent estimated schedule for the
program, including--
``(i) the dollar values and ranges estimated
for the program acquisition unit cost, average
procurement unit cost, and total life-cycle cost;
and
``(ii) the planned dates for each program
milestone, initial operational test and
evaluation, and initial operational capability.
``(D) A summary of the technical and manufacturing
risks associated with the program, as determined by the
military department concerned, including identification
of any critical technologies or manufacturing processes
that have not been successfully demonstrated in a
relevant environment.
``(E) A summary of the independent technical risk
assessment conducted or approved under section 2448b of
this title, including identification of any critical
technologies or manufacturing processes that have not
been successfully demonstrated in a relevant
environment.
``(F) A statement of whether a modular open system
approach is being used for the program.
``(G) Any other information the milestone decision
authority considers relevant.
``(2) Certifications and determinations.--(A) The
certifications and determination under subsection (a) with
respect to a major defense acquisition program shall be
submitted to the congressional defense committees with the first
Selected Acquisition Report submitted under section 2432 of this
title after completion of the certification.
``(B) The milestone decision authority shall retain records
of the basis for the certifications and determination under
paragraphs (1), (2), and (3) of subsection (a).
``(3) Additional information.--(A) At the request of any of
the congressional defense committees or, in the case of
intelligence or intelligence-related activities, the
congressional intelligence committees, the milestone decision
authority shall submit to the committee an explanation of the
basis for the certifications and determination under paragraphs
(1), (2), and (3) of subsection (a) with respect to a major
defense acquisition program or further information or underlying
documentation

[[Page 2265]]

for the information in a brief summary report submitted under
paragraph (1), including the independent cost and schedule
estimates and the independent technical risk assessments
referred to in that paragraph.
``(B) The explanation or information shall be submitted in
unclassified form, but may include a classified annex.''.
(2) Definitions.--Section 2366b(g) of such title is amended
by adding at the end the following new paragraphs:
``(6) The term `fielding target' has the meaning given that
term in section 2448a(a) of this title.
``(7) The term `major system component' has the meaning
given that term in section 2446a(b)(3) of this title.
``(8) The term `congressional intelligence committees' has
the meaning given that term in section 437(c) of this title.''.

(c) Milestone C Report.--
(1) In general.--Chapter 139 of such title is amended by
inserting after section 2366b the following new section:
``Sec. 2366c. <>  Major defense acquisition
programs: submissions to Congress on Milestone
C

``(a) Brief Summary Report.--Not later than 15 days after granting
Milestone C approval for a major defense acquisition program, the
milestone decision authority for the program shall provide to the
congressional defense committees and, in the case of intelligence or
intelligence-related activities, the congressional intelligence
committees a brief summary report that contains the following:
``(1) The estimated cost and schedule for the program
established by the military department concerned, including--
``(A) the dollar values estimated for the program
acquisition unit cost, average procurement unit cost,
and total life-cycle cost; and
``(B) the planned dates for initial operational test
and evaluation and initial operational capability.
``(2) The independent estimated cost for the program
established pursuant to section 2334(a)(6) of this title, and
any independent estimated schedule for the program, including--
``(A) the dollar values estimated for the program
acquisition unit cost, average procurement unit cost,
and total life-cycle cost; and
``(B) the planned dates for initial operational test
and evaluation and initial operational capability.
``(3) A summary of any production, manufacturing, and
fielding risks associated with the program.

``(b) Additional Information.--At the request of any of the
congressional defense committees or, in the case of intelligence or
intelligence-related activities, the congressional intelligence
committees, the milestone decision authority shall submit to the
committee further information or underlying documentation for the
information in a brief summary report submitted under subsection (a),
including the independent cost and schedule estimates and the
independent technical risk assessments referred to in that subsection.
``(c) Congressional Intelligence Committees Defined.--In this
section, the term `congressional intelligence committees' has the
meaning given that term in section 437(c) of this title.''.

[[Page 2266]]

(2) Clerical amendment.--The table of sections at the
beginning of such chapter <> is amended
by inserting after the item relating to section 2366b the
following new item:

``2366c. Major defense acquisition programs: submissions to Congress on
Milestone C.''.

SEC. 809. AMENDMENTS RELATING TO TECHNICAL DATA RIGHTS.

(a) Rights Relating to Item or Process Developed Exclusively at
Private Expense.--Subsection (a)(2)(C)(iii) of section 2320 of title 10,
United States Code, is amended by inserting after ``or process data''
the following: ``, including such data pertaining to a major system
component''.
(b) Rights Relating to Interface or Major System Interface.--
Subsection (a)(2) of section 2320 of such title is further amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (H) and (I), respectively;
(2) in subparagraph (B), by striking ``Except as provided in
subparagraphs (C) and (D),'' and inserting ``Except as provided
in subparagraphs (C), (D), and (G),'';
(3) in subparagraph (D)(i)(II), by striking ``is necessary''
and inserting ``is a release, disclosure, or use of technical
data pertaining to an interface between an item or process and
other items or processes necessary'';
(4) in subparagraph (E)--
(A) by striking ``In the case'' and inserting
``Except as provided in subparagraphs (F) and (G), in
the case''; and
(B) by striking ``negotiations). The United States
shall have'' and all that follows through ``such
negotiated rights shall'' and inserting the following:
``negotiations) and shall be based on negotiations
between the United States and the contractor, except in
any case in which the Secretary of Defense determines,
on the basis of criteria established in the regulations,
that negotiations would not be practicable. The
establishment of such rights shall''; and
(5) by inserting after subparagraph (E) the following new
subparagraphs (F) and (G):
``(F) Interfaces developed with mixed funding.--
Notwithstanding subparagraph (E), the United States shall have
government purpose rights in technical data pertaining to an
interface between an item or process and other items or
processes that was developed in part with Federal funds and in
part at private expense, except in any case in which the
Secretary of Defense determines, on the basis of criteria
established in the regulations, that negotiation of different
rights in such technical data would be in the best interest of
the United States.
``(G) Major system interfaces developed exclusively at
private expense or with mixed funding.--Notwithstanding
subparagraphs (B) and (E), the United States shall have
government purpose rights in technical data pertaining to a
major system interface developed exclusively at private expense
or in part with Federal funds and in part at private expense and
used in a modular open system approach pursuant to section 2446a
of this title, except in any case in which

[[Page 2267]]

the Secretary of Defense determines that negotiation of
different rights in such technical data would be in the best
interest of the United States. Such major system interface shall
be identified in the contract solicitation and the contract. For
technical data pertaining to a major system interface developed
exclusively at private expense for which the United States
asserts government purpose rights, the Secretary of Defense
shall negotiate with the contractor the appropriate and
reasonable compensation for such technical data.''.

(c) Amendment Relating to Deferred Ordering.--Subsection (b)(9) of
section 2320 of such title is amended--
(1) by striking ``at any time'' and inserting ``, until the
date occurring six years after acceptance of the last item
(other than technical data) under a contract or the date of
contract termination, whichever is later,'';
(2) by striking ``or utilized in the performance of a
contract'' and inserting ``in the performance of the contract'';
and
(3) by striking clause (ii) of subparagraph (B) and
inserting the following:
``(ii) is described in subparagraphs
(D)(i)(II), (F), and (G) of subsection (a)(2);
and''.

(d) Definitions.--Section 2320 of such title is further amended--
(1) in subsection (f), by inserting ``Covered Government
Support Contractor Defined.--'' before ``In this section''; and
(2) by adding at the end the following new subsection:

``(g) Additional Definitions.--In this section, the terms `major
system component', `major system interface', and `modular open system
approach' have the meanings provided in section 2446a of this title.''.
(e) Amendments to Add Certain Headings for Readability.--Section
2320(a) of such title is further amended--
(1) in subparagraph (A) of paragraph (2), by inserting after
``(A)'' the following: ``Development exclusively with federal
funds.--'';
(2) in subparagraph (B) of such paragraph, by inserting
after ``(B)'' the following: ``Development exclusively at
private expense.--'';
(3) in subparagraph (C) of such paragraph, by inserting
after ``(C)'' the following: ``Exception to subparagraph (b).--
'';
(4) in subparagraph (D) of such paragraph, by inserting
after ``(D)'' the following: ``Exception to subparagraph (b).--
''; and
(5) in subparagraph (E) of such paragraph, by inserting
after ``(E)'' the following: ``Development with mixed funding.--
''.

(f) Government-industry Advisory Panel Amendments.--Section 813(b)
of the National Defense Authorization Act for Fiscal Year 2016 (Public
Law 114-92; 129 Stat. 892) is amended--
(1) by adding at the end of paragraph (1) the following:
``The panel shall develop recommendations for changes to
sections 2320 and 2321 of title 10, United States Code, and the
regulations implementing such sections.'';
(2) in paragraph (3)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and

[[Page 2268]]

(B) by inserting after subparagraph (C) the
following new subparagraph (D):
``(D) Ensuring that the Department of Defense and
Department of Defense contractors have the technical
data rights necessary to support the modular open system
approach requirement set forth in section 2446a of title
10, United States Code, taking into consideration the
distinct characteristics of major system platforms,
major system interfaces, and major system components
developed exclusively with Federal funds, exclusively at
private expense, and with a combination of Federal funds
and private expense.''; and
(3) by amending paragraph (4) to read as follows:
``(4) Final report.--Not later than February 1, 2017, the
advisory panel shall submit its final report and recommendations
to the Secretary of Defense and the congressional defense
committees. Not later than 60 days after receiving the report,
the Secretary shall submit any comments or recommendations to
the congressional defense committees.''.

Subtitle C--Amendments to General Contracting Authorities, Procedures,
and Limitations

SEC. 811. MODIFIED RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL
ACTIONS.

Section 2326 of title 10, United States Code, is amended--
(1) in subsection (e)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B);
(B) by inserting ``(1)'' before ``The head''; and
(C) by adding at the end the following new
paragraph:

``(2) If a contractor submits a qualifying proposal to definitize an
undefinitized contractual action and the contracting officer for such
action definitizes the contract after the end of the 180-day period
beginning on the date on which the contractor submitted the qualifying
proposal, the head of the agency concerned shall ensure that the profit
allowed on the contract accurately reflects the cost risk of the
contractor as such risk existed on the date the contractor submitted the
qualifying proposal.'';
(2) by redesignating subsections (f) and (g) as subsections
(h) and (i), respectively;
(3) by inserting after subsection (e) the following new
subsections:

``(f) Time Limit.--No undefinitized contractual action may extend
beyond 90 days without a written determination by the Secretary of the
military department concerned, the head of the Defense Agency concerned,
the commander of the combatant command concerned, or the Under Secretary
of Defense for Acquisition, Technology, and Logistics (as applicable)
that it is in the best interests of the military department, the Defense
Agency, the combatant command, or the Department of Defense,
respectively, to continue the action.
``(g) Foreign Military Contracts.--(1) Except as provided in
paragraph (2), a contracting officer of the Department of Defense

[[Page 2269]]

may not enter into an undefinitized contractual action for a foreign
military sale unless the contractual action provides for agreement upon
contractual terms, specifications, and price by the end of the 180-day
period described in subsection (b)(1)(A).
``(2) The requirement under paragraph (1) may be waived in
accordance with subsection (b)(4).''; and
(4) in subsection (i), as redesignated by paragraph (2)--
(A) in paragraph (1)--
(i) by striking subparagraph (A); and
(ii) by redesignating subparagraphs (B), (C),
and (D) as subparagraphs (A), (B), and (C),
respectively; and
(B) in paragraph (2), by striking ``complete and
meaningful audits'' and all that follows through the
period and inserting ``a meaningful audit of the
information contained in the proposal.''.
SEC. 812. AMENDMENTS RELATING TO INVENTORY AND TRACKING OF
PURCHASES OF SERVICES.

(a) Increased Threshold.--Subsection (a) of section 2330a of title
10, United States Code, is amended by striking ``in excess of the
simplified acquisition threshold'' and inserting ``in excess of
$3,000,000''.
(b) Specification of Services.--Subsection (a) of such section is
further amended by striking the period at the end and inserting the
following: ``, for services in the following service acquisition
portfolio groups:
``(1) Logistics management services.
``(2) Equipment related services.
``(3) Knowledge-based services.
``(4) Electronics and communications services.''.

(c) Inventory Summary.--Subsection (c) of such section is amended--
(1) by striking ``(c) Inventory.--'' and inserting ``(c)
Inventory Summary.--''; and
(2) in paragraph (1), by striking ``submit to Congress an
annual inventory'' and all that follows through ``for or on
behalf'' and inserting ``prepare an annual inventory, and submit
to Congress a summary of the inventory, of activities performed
during the preceding fiscal year pursuant to staff augmentation
contracts on behalf''.

(d) Elimination of Certain Requirements.--Such section is further
amended--
(1) by striking subsections (d), (g), and (h); and
(2) by redesignating subsections (e), (f), (i), and (j) as
subsections (d), (e), (g), and (h), respectively.

(e) Specification of Services to Be Reviewed.--Subsection (d), as so
redesignated, of such section, is amended in paragraph (1) by inserting
after ``responsible'' the following: ``, with particular focus and
attention on the following categories of high-risk product service codes
(also referred to as Federal supply codes):
``(A) Special studies or analysis that is not
research and development.
``(B) Information technology and telecommunications.
``(C) Support, including professional,
administrative, and management.''.

[[Page 2270]]

(f) Comptroller General Report.--Such section is further amended by
inserting after subsection (e), as so redesignated, the following new
subsection (f):
``(f) Comptroller General Report.--Not later than March 31, 2018,
the Comptroller General of the United States shall submit to the
congressional defense committees a report on the status of the data
collection required in subsection (a) and an assessment of the efforts
by the Department of Defense to implement subsection (e).''.
(g) Definitions.--Subsection (h), as so redesignated, of such
section is amended by adding at the end the following new paragraphs:
``(6) The term `service acquisition portfolio groups' means
the groups identified in Department of Defense Instruction
5000.74, Defense Acquisition of Services (January 5, 2016) or
successor guidance.
``(7) The term `staff augmentation contracts' means services
contracts for personnel who are physically present in a
Government work space on a full-time or permanent part-time
basis, for the purpose of advising on, providing support to, or
assisting a Government agency in the performance of the agency's
missions, including authorized personal services contracts (as
that term is defined in section 2330a(g)(5) of this title).''.
SEC. 813. <>  USE OF LOWEST PRICE
TECHNICALLY ACCEPTABLE SOURCE SELECTION
PROCESS.

(a) Statement of Policy.--It shall be the policy of the Department
of Defense to avoid using lowest price technically acceptable source
selection criteria in circumstances that would deny the Department the
benefits of cost and technical tradeoffs in the source selection
process.
(b) Revision of Defense Federal Acquisition Regulation Supplement.--
Not later than 120 days after the date of the enactment of this Act, the
Secretary of Defense shall revise the Defense Federal Acquisition
Regulation Supplement to require that, for solicitations issued on or
after the date that is 120 days after the date of the enactment of this
Act, lowest price technically acceptable source selection criteria are
used only in situations in which--
(1) the Department of Defense is able to comprehensively and
clearly describe the minimum requirements expressed in terms of
performance objectives, measures, and standards that will be
used to determine acceptability of offers;
(2) the Department of Defense would realize no, or minimal,
value from a contract proposal exceeding the minimum technical
or performance requirements set forth in the request for
proposal;
(3) the proposed technical approaches will require no, or
minimal, subjective judgment by the source selection authority
as to the desirability of one offeror's proposal versus a
competing proposal;
(4) the source selection authority has a high degree of
confidence that a review of technical proposals of offerors
other than the lowest bidder would not result in the
identification of factors that could provide value or benefit to
the Department;

[[Page 2271]]

(5) the contracting officer has included a justification for
the use of a lowest price technically acceptable evaluation
methodology in the contract file; and
(6) the Department of Defense has determined that the lowest
price reflects full life-cycle costs, including for operations
and support.

(c) Avoidance of Use of Lowest Price Technically Acceptable Source
Selection Criteria in Certain Procurements.--To the maximum extent
practicable, the use of lowest price technically acceptable source
selection criteria shall be avoided in the case of a procurement that is
predominately for the acquisition of--
(1) information technology services, cybersecurity services,
systems engineering and technical assistance services, advanced
electronic testing, audit or audit readiness services, or other
knowledge-based professional services;
(2) personal protective equipment; or
(3) knowledge-based training or logistics services in
contingency operations or other operations outside the United
States, including in Afghanistan or Iraq.

(d) Reporting.--Not later than December 1, 2017, and annually
thereafter for three years, the Comptroller General of the United States
shall submit to the congressional defense committees a report on the
number of instances in which lowest price technically acceptable source
selection criteria is used for a contract exceeding $10,000,000,
including an explanation of how the situations listed in subsection (b)
were considered in making a determination to use lowest price
technically acceptable source selection criteria.
SEC. 814. <>  PROCUREMENT OF PERSONAL
PROTECTIVE EQUIPMENT.

(a) Limitation.--Not later than 90 days after the date of the
enactment of this Act, the Defense Federal Acquisition Regulation
Supplement shall be revised--
(1) to prohibit the use by the Department of Defense of
reverse auctions or lowest price technically acceptable
contracting methods for the procurement of personal protective
equipment if the level of quality or failure of the item could
result in combat casualties; and
(2) to establish a preference for the use of best value
contracting methods for the procurement of such equipment.

(b) Conforming Amendment.--Section 884 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat.
948; 10 U.S.C. 2302 note) is hereby repealed.
SEC. 815. AMENDMENTS RELATED TO DETECTION AND AVOIDANCE OF
COUNTERFEIT ELECTRONIC PARTS.

Section 818 of the National Defense Authorization Act for Fiscal
Year 2012 (Public Law 112-81; 10 U.S.C. 2302 note) is amended--
(1) in paragraph (3) of subsection (c)--
(A) by striking the heading and inserting
``Suppliers meeting anticounterfeiting requirements.--
'';
(B) in subparagraph (A)(i), by striking ``trusted
suppliers in accordance with regulations issued pursuant
to subparagraph (C) or (D) who'' and inserting
``suppliers that meet anticounterfeiting requirements in
accordance with regulations issued pursuant to
subparagraph (C) or (D) and that'';

[[Page 2272]]

(C) in subparagraphs (A)(ii) and (A)(iii), by
striking ``trusted suppliers'' each place it appears and
inserting ``suppliers that meet anticounterfeiting
requirements'';
(D) in subparagraph (C), by striking ``as trusted
suppliers those'' and inserting ``suppliers'';
(E) in subparagraph (D) in the matter preceding
clause (i), by striking ``trusted suppliers'' and
inserting ``suppliers that meet anticounterfeiting
requirements''; and
(F) in subparagraphs (D)(i) and (D)(iii), by
striking ``trusted'' each place it appears; and
(2) in subsection (e)(2)(A)(v), by striking ``use of trusted
suppliers'' and inserting ``the use of suppliers that meet
applicable anticounterfeiting requirements''.
SEC. 816. AMENDMENTS TO SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

Section 1903(a) of title 41, United States Code, is amended--
(1) by striking ``or'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting a semicolon; and
(3) by adding after paragraph (2) the following new
paragraphs:
``(3) in support of a request from the Secretary of State or
the Administrator of the United States Agency for International
Development to facilitate the provision of international
disaster assistance pursuant to chapter 9 of part I of the
Foreign Assistance Act of 1961 (22 U.S.C. 2292 et seq.); or
``(4) in support of an emergency or major disaster (as those
terms are defined in section 102 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122)).''.
SEC. 817. COMPLIANCE WITH DOMESTIC SOURCE REQUIREMENTS FOR
FOOTWEAR FURNISHED TO ENLISTED MEMBERS OF
THE ARMED FORCES UPON THEIR INITIAL ENTRY
INTO THE ARMED FORCES.

Section 418 of title 37, United States Code, is amended by adding at
the end the following new subsection:
``(d)(1) In the case of athletic footwear needed by members of the
Army, Navy, Air Force, or Marine Corps upon their initial entry into the
armed forces, the Secretary of Defense shall furnish such footwear
directly to the members instead of providing a cash allowance to the
members for the purchase of such footwear.
``(2) In procuring athletic footwear to comply with paragraph (1),
the Secretary of Defense shall--
``(A) procure athletic footwear that complies with the
requirements of section 2533a of title 10, without regard to the
applicability of any simplified acquisition threshold under
chapter 137 of title 10 (or any other provision of law); and
``(B) procure additional athletic footwear, for two years
following the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2017, that is necessary to
provide a member described in paragraph (1) with sufficient
choices in athletic shoes so as to minimize the incidence of
athletic injuries and potential unnecessary harm and risk to the
safety and well-being of members in initial entry training.

[[Page 2273]]

``(3) This subsection does not prohibit the provision of a cash
allowance to a member described in paragraph (1) for the purchase of
athletic footwear if such footwear--
``(A) is medically required to meet unique physiological
needs of the member; and
``(B) cannot be met with athletic footwear that complies
with the requirements of this subsection.''.
SEC. 818. EXTENSION OF AUTHORITY FOR ENHANCED TRANSFER OF
TECHNOLOGY DEVELOPED AT DEPARTMENT OF
DEFENSE LABORATORIES.

Section 801(e) of the National Defense Authorization Act for Fiscal
Year 2014 (Public Law 113-66; 127 Stat. 804; 10 U.S.C. 2514 note) is
amended by striking ``2017'' and inserting ``2021''.
SEC. 819. MODIFIED NOTIFICATION REQUIREMENT FOR EXERCISE OF WAIVER
AUTHORITY TO ACQUIRE VITAL NATIONAL
SECURITY CAPABILITIES.

Subsection (d) of section 806 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note) is
amended to read as follows:
``(d) Notification Requirement.--Not later than 10 days after
exercising the waiver authority under subsection (a), the Secretary of
Defense shall provide a written notification to Congress providing the
details of the waiver and the expected benefits it provides to the
Department of Defense.''.
SEC. 820. DEFENSE COST ACCOUNTING STANDARDS.

(a) Amendments to the Cost Accounting Standards Board.--
(1) In general.--Section 1501 of title 41, United States
Code, is amended--
(A) in subsection (b)(1)(B)(ii), by inserting ``and,
if possible, is a representative of a public accounting
firm'' after ``systems'';
(B) by redesignating subsections (c) through (f) as
subsections (f) through (i), respectively;
(C) by inserting after subsection (b) the following
new subsections:

``(c) Duties.--The Board shall--
``(1) ensure that the cost accounting standards used by
Federal contractors rely, to the maximum extent practicable, on
commercial standards and accounting practices and systems;
``(2) within one year after the date of enactment of this
subsection, and on an ongoing basis thereafter, review any cost
accounting standards established under section 1502 of this
title and conform such standards, where practicable, to
Generally Accepted Accounting Principles; and
``(3) annually review disputes involving such standards
brought to the boards established in section 7105 of this title
or Federal courts, and consider whether greater clarity in such
standards could avoid such disputes.

``(d) Meetings.--The Board shall meet not less than once each
quarter and shall publish in the Federal Register notice of each meeting
and its agenda before such meeting is held.
``(e) Report.--The Board shall annually submit a report to the
congressional defense committees, the Committee on Oversight and
Government Reform of the House of Representatives, and the

[[Page 2274]]

Committee on Homeland Security and Governmental Affairs of the Senate
describing the actions taken during the prior year--
``(1) to conform the cost accounting standards established
under section 1502 of this title with Generally Accepted
Accounting Principles; and
``(2) to minimize the burden on contractors while protecting
the interests of the Federal Government.''; and
(D) by amending subsection (f) (as so redesignated)
to read as follows:

``(f) Senior Staff.--The Administrator, after consultation with the
Board--
``(1) without regard to the provisions of title 5 governing
appointments in the competitive service--
``(A) shall appoint an executive secretary; and
``(B) may appoint, or detail pursuant to section
3341 of title 5, two additional staff members; and
``(2) may pay those employees without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
title 5 relating to classification and General Schedule pay
rates, except that those employees may not receive pay in excess
of the maximum rate of basic pay payable for level IV of the
Executive Schedule.''.
(2) Value of contracts eligible for waiver.--Section
1502(b)(3)(A) of title 41, United States Code, is amended by
striking ``$15,000,000'' and inserting ``$100,000,000''.
(3) Conforming amendments.--Section 1501(i) of title 41,
United States Code (as redesignated by paragraph (1)), is
amended--
(A) in paragraph (1), by striking ``subsection
(e)(1)'' and inserting ``subsection (h)(1)''; and
(B) in paragraph (3), by striking ``subsection
(e)(2)'' and inserting ``subsection (h)(2)''.

(b) Defense Cost Accounting Standards Board.--
(1) In general.--Chapter 7 of title 10, United States Code,
is amended by adding at the end the following new section:
``Sec. 190. <>  Defense Cost Accounting
Standards Board

``(a) Organization.--The Defense Cost Accounting Standards Board is
an independent board in the Office of the Secretary of Defense.
``(b) Membership.--(1) The Board consists of seven members. One
member is the Chief Financial Officer of the Department of Defense or a
designee of the Chief Financial Officer, who serves as Chairman. The
other six members, all of whom shall have experience in contract
pricing, finance, or cost accounting, are as follows:
``(A) Three representatives of the Department of Defense
appointed by the Secretary of Defense; and
``(B) Three individuals from the private sector, each of
whom is appointed by the Secretary of Defense, and--
``(i) one of whom is a representative of a
nontraditional defense contractor (as defined in section
2302(9) of this title); and
``(ii) one of whom is a representative from a public
accounting firm.

[[Page 2275]]

``(2) A member appointed under paragraph (1)(A) may not continue to
serve after ceasing to be an officer or employee of the Department of
Defense.
``(c) Duties of the Chairman.--The Chief Financial Officer of the
Department of Defense, after consultation with the Defense Cost
Accounting Standards Board, shall prescribe rules and procedures
governing actions of the Board under this section.
``(d) Duties.--The Defense Cost Accounting Standards Board--
``(1) shall review cost accounting standards established
under section 1502 of title 41 and recommend changes to such
cost accounting standards to the Cost Accounting Standards Board
established under section 1501 of such title;
``(2) has exclusive authority, with respect to the
Department of Defense, to implement such cost accounting
standards to achieve uniformity and consistency in the standards
governing measurement, assignment, and allocation of costs to
contracts with the Department of Defense; and
``(3) shall develop standards to ensure that commercial
operations performed by Government employees at the Department
of Defense adhere to cost accounting standards (based on cost
accounting standards established under section 1502 of title 41
or Generally Accepted Accounting Principles) that inform
managerial decisionmaking.

``(e) Compensation.--(1) Members of the Defense Cost Accounting
Standards Board who are officers or employees of the Department of
Defense shall not receive additional compensation for services but shall
continue to be compensated by the Department of Defense.
``(2) Each member of the Board appointed from the private sector
shall receive compensation at a rate not to exceed the daily equivalent
of the rate for level IV of the Executive Schedule for each day
(including travel time) in which the member is engaged in the actual
performance of duties vested in the Board.
``(3) While serving away from home or regular place of business,
Board members and other individuals serving on an intermittent basis
shall be allowed travel expenses in accordance with section 5703 of
title 5.
``(f) Auditing Requirements.--(1) Notwithstanding any other
provision of law, contractors with the Department of Defense may
present, and the Defense Contract Audit Agency shall accept without
performing additional audits, a summary of audit findings prepared by a
commercial auditor if--
``(A) the auditor previously performed an audit of the
allowability, measurement, assignment to accounting periods, and
allocation of indirect costs of the contractor; and
``(B) such audit was performed using relevant commercial
accounting standards (such as Generally Accepted Accounting
Principles) and relevant commercial auditing standards
established by the commercial auditing industry for the relevant
accounting period.

``(2) The Defense Contract Audit Agency may audit direct costs of
Department of Defense cost contracts and shall rely on commercial audits
of indirect costs without performing additional audits, except that in
the case of companies or business units that have a predominance of
cost-type contracts as a percentage of sales, the Defense Contract Audit
Agency may audit both direct and indirect costs.''.

[[Page 2276]]

(2) Clerical amendment.--The table of sections at the
beginning of chapter 7 of such title <> is amended by adding after the item relating to section
189 the following new item:

``190. Defense Cost Accounting Standards Board.''.

(c) Report.--Not later than December 31, 2019, the Comptroller
General of the United States shall submit to the congressional defense
committees a report on the adequacy of the method used by the Cost
Accounting Standards Board established under section 1501 of title 41,
United States Code, to apply cost accounting standards to indirect and
fixed price incentive contracts.
(d) <>  Effective Date.--The amendments made
by this section shall take effect on October 1, 2018.
SEC. 821. INCREASED MICRO-PURCHASE THRESHOLD APPLICABLE TO
DEPARTMENT OF DEFENSE PROCUREMENTS.

(a) Increased Micro-purchase Threshold.--Chapter 137 of title 10,
United States Code, is amended by adding at the end the following new
section:
``Sec. 2338. <>  Micro-purchase threshold

``Notwithstanding subsection (a) of section 1902 of title 41, the
micro-purchase threshold for the Department of Defense for purposes of
such section is $5,000.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter <> is amended by adding at the end
the following new item:

``2338. Micro-purchase threshold.''.

SEC. 822. ENHANCED COMPETITION REQUIREMENTS.

Section 2306a of title 10, United States Code, is amended--
(1) in subsection (a)(1)(A), by inserting ``that is only
expected to receive one bid'' after ``entered into using
procedures other than sealed-bid procedures''; and
(2) in subsection (b)--
(A) in paragraph (1)(A)(i), by striking ``price
competition'' and inserting ``competition that results
in at least two or more responsive and viable competing
bids''; and
(B) by adding at the end the following new
paragraph:
``(6) Determination by prime contractor.--A prime contractor
required to submit certified cost or pricing data under
subsection (a) with respect to a prime contract shall be
responsible for determining whether a subcontract under such
contract qualifies for an exception under paragraph (1)(A) from
such requirement.''.
SEC. 823. REVISION TO EFFECTIVE DATE OF SENIOR EXECUTIVE BENCHMARK
COMPENSATION FOR ALLOWABLE COST
LIMITATIONS.

(a) Repeal of Retroactive Applicability.--Section 803(c) of the
National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-
81; 125 Stat. 1485; 10 U.S.C. 2324 note) is amended by striking
``amendments made by'' and all that follows and inserting ``amendments
made by this section shall apply with respect to costs of compensation
incurred after January 1, 2012, under contracts entered into on or after
December 31, 2011.''.

[[Page 2277]]

(b) <>  Applicability.--The amendment made
by subsection (a) shall take effect as of December 31, 2011, and shall
apply as if included in the National Defense Authorization Act for
Fiscal Year 2012 as enacted.
SEC. 824. TREATMENT OF INDEPENDENT RESEARCH AND DEVELOPMENT COSTS
ON CERTAIN CONTRACTS.

(a) Independent Research and Development Costs: Allowable Costs.--
(1) In general.--Section 2372 of title 10, United States
Code, is amended to read as follows:
``Sec. 2372. Independent research and development costs: allowable
costs

``(a) Regulations.--The Secretary of Defense shall prescribe
regulations governing the payment by the Department of Defense of
expenses incurred by contractors for independent research and
development costs. Such regulations shall provide that expenses incurred
for independent research and development shall be reported independently
from other allowable indirect costs.
``(b) Costs Treated as Fair and Reasonable, and Allowable,
Expenses.--The regulations prescribed under subsection (a) shall provide
that independent research and development costs shall be considered a
fair and reasonable, and allowable, indirect expense on Department of
Defense contracts.
``(c) Additional Controls.--Subject to subsection (d), the
regulations prescribed under subsection (a) may include the following
provisions:
``(1) Controls on the reimbursement of costs to the
contractor for expenses incurred for independent research and
development to ensure that such costs were incurred for
independent research and development.
``(2) Implementation of regular methods for transmission--
``(A) from the Department of Defense to contractors,
in a reasonable manner, of timely and comprehensive
information regarding planned or expected needs of the
Department of Defense for future technology and advanced
capability; and
``(B) from contractors to the Department of Defense,
in a reasonable manner, of information regarding
progress by the contractor on the independent research
and development programs of the contractor.

``(d) Limitations on Regulations.--Regulations prescribed under
subsection (a) may not include provisions that would infringe on the
independence of a contractor to choose which technologies to pursue in
its independent research and development program if the chief executive
officer of the contractor determines that expenditures will advance the
needs of the Department of Defense for future technology and advanced
capability as transmitted pursuant to subsection (c)(3)(A).
``(e) Effective Date.--The regulations prescribed under subsection
(a) shall apply to indirect costs incurred on or after October 1,
2017.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 139 <> is amended
by striking the item relating to section 2372 and inserting the
following new item:

``2372. Independent research and development costs: allowable costs''.


[[Page 2278]]



(b) Bid and Proposal Costs: Allowable Costs.--
(1) In general.--Chapter 139 of title 10, United States
Code, is amended by inserting after section 2372 the following
new section:
``Sec. 2372a. <>  Bid and proposal costs:
allowable costs

``(a) Regulations.--The Secretary of Defense shall prescribe
regulations governing the payment by the Department of Defense of
expenses incurred by contractors for bid and proposal costs. Such
regulations shall provide that expenses incurred for bid and proposal
costs shall be reported independently from other allowable indirect
costs.
``(b) Costs Allowable as Indirect Expenses.--The regulations
prescribed under subsection (a) shall provide that bid and proposal
costs shall be allowable as indirect expenses on covered contracts, as
defined in section 2324(l) of this title, to the extent that those costs
are allocable, reasonable, and not otherwise unallowable by law or under
the Federal Acquisition Regulation.
``(c) Goal for Reimbursable Bid and Proposal Costs.--The Secretary
shall establish a goal each fiscal year limiting the amount of
reimbursable bid and proposal costs paid by the Department of Defense to
an amount equal to not more than one percent of the total aggregate
industry sales to the Department of Defense. To achieve such goal, the
Secretary may not limit the payment of allowable bid and proposal costs
for the covered year.
``(d) Panel.--(1) If the Department of Defense exceeds the goal
established under subsection (c) for a fiscal year, within 180 days
after exceeding the goal, the Secretary shall establish an advisory
panel. The panel shall be supported by the Defense Acquisition
University and the National Defense University, including administrative
support.
``(2) The panel shall be composed of nine individuals who are
recognized experts in acquisition and procurement policy appointed by
the Secretary. In making such appointments, the Secretary shall ensure
that the members of the panel reflect diverse experiences in the public
and private sector.
``(3) The panel shall review laws, regulations, and practices that
contribute to the expenses incurred by contractors for bids and
proposals in the fiscal year concerned and recommend changes to such
laws, regulations, and practices that may reduce expenses incurred by
contractors for bids and proposals.
``(4)(A) Not later than six months after the establishment of the
panel, the panel shall submit to the Secretary and the congressional
defense committees an interim report on the findings of the panel.
``(B) Not later than one year after the establishment of the
panel, the panel shall submit to the Secretary and the
congressional defense committees a final report on the findings
of the panel.

``(5) The panel shall terminate on the day the panel submits the
final report under paragraph (4)(B).
``(6) The Secretary of Defense may use amounts available in the
Department of Defense Acquisition Workforce Development Fund established
under section 1705 of this title to support the activities of the panel
established under this subsection.

[[Page 2279]]

``(e) Effective Date.--The regulations prescribed under subsection
(a) shall apply to indirect costs incurred on or after October 1,
2017.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 139 of such title <> is amended by inserting the following new item:

``2372a. Bid and proposal costs: allowable costs''.

(c) Report on Elements Contributing to Expenses Incurred by
Contractors for Bids and Proposals.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Defense shall enter
into a contract with an independent entity to study the laws,
regulations, and practices relating to expenses incurred by
contractors for bids and proposals.
(2) Report.--Not later than 180 days after receipt of the
contract required by paragraph (1), the independent entity shall
submit to the Department of Defense and the congressional
defense committees a report on the laws, regulations, or
practices relating to expenses incurred by contractors for bids
and recommendations for changes to such laws, regulations, or
practices that may reduce expenses incurred by contractors for
bids and proposals.

(d) Defense Contract Audit Agency: Annual Report.--
(1) In general.--Subsection (a) of section 2313a of title
10, United States Code, is amended--
(A) by redesignating paragraphs (4) and (5) as
paragraphs (6) and (7), respectively; and
(B) by inserting after paragraph (3) the following
new paragraphs:
``(3) a summary, set forth separately by dollar amount and
percentage, of indirect costs for independent research and
development incurred by contractors in the previous fiscal year;
``(4) a summary, set forth separately by dollar amount and
percentage, of indirect costs for bid and proposal costs
incurred by contractors in the previous fiscal year;''.
(2) <>  Effective date.--The
amendments made by this subsection shall take effect on October
1, 2018.
SEC. 825. EXCEPTION TO REQUIREMENT TO INCLUDE COST OR PRICE TO THE
GOVERNMENT AS A FACTOR IN THE EVALUATION
OF PROPOSALS FOR CERTAIN MULTIPLE-AWARD
TASK OR DELIVERY ORDER CONTRACTS.

(a) Exception to Requirement to Include Cost or Price as Factor.--
Section 2305(a)(3) of title 10, United States Code, is amended--
(1) in subparagraph (A)--
(A) in clause (i), by inserting ``(except as
provided in subparagraph (C))'' after ``shall''; and
(B) in clause (ii), by inserting ``(except as
provided in subparagraph (C))'' after ``shall''; and
(2) by adding at the end the following new subparagraphs:
``(C) If the head of an agency issues a solicitation for
multiple task or delivery order contracts under section
2304a(d)(1)(B) of this title for the same or similar services
and intends to make a contract award to each qualifying
offeror--

[[Page 2280]]

``(i) cost or price to the Federal Government need
not, at the Government's discretion, be considered under
clause (ii) of subparagraph (A) as an evaluation factor
for the contract award; and
``(ii) if, pursuant to clause (i), cost or price to
the Federal Government is not considered as an
evaluation factor for the contract award--
``(I) the disclosure requirement of clause
(iii) of subparagraph (A) shall not apply; and
``(II) cost or price to the Federal Government
shall be considered in conjunction with the
issuance pursuant to section 2304c(b) of this
title of a task or delivery order under any
contract resulting from the solicitation.
``(D) In subparagraph (C), the term `qualifying offeror'
means an offeror that--
``(i) is determined to be a responsible source;
``(ii) submits a proposal that conforms to the
requirements of the solicitation; and
``(iii) the contracting officer has no reason to
believe would likely offer other than fair and
reasonable pricing.
``(E) Subparagraph (C) shall not apply to multiple task or
delivery order contracts if the solicitation provides for sole
source task or delivery order contracts pursuant to section 8(a)
of the Small Business Act (15 U.S.C. 637(a)).''.

(b) Amendment to Procedures Relating to Orders Under Multiple-award
Contracts.--Section 2304c(b) of title 10, United States Code, is
amended--
(1) in paragraph (3), by striking ``or'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new paragraph:
``(5) the task or delivery order satisfies one of the
exceptions in section 2304(c) of this title to the requirement
to use competitive procedures.''.
SEC. 826. EXTENSION OF PROGRAM FOR COMPREHENSIVE SMALL BUSINESS
CONTRACTING PLANS.

Section 834(e) of the National Defense Authorization Act for Fiscal
Years 1990 and 1991 (15 U.S.C. 637 note) is amended by striking
``December 31, 2017'' and inserting ``December 31, 2027''.
SEC. 827. TREATMENT OF SIDE-BY-SIDE TESTING OF CERTAIN EQUIPMENT,
MUNITIONS, AND TECHNOLOGIES MANUFACTURED
AND DEVELOPED UNDER COOPERATIVE RESEARCH
AND DEVELOPMENT AGREEMENTS AS USE OF
COMPETITIVE PROCEDURES.

Section 2350a(g) of title 10, United States Code, is amended by
inserting after paragraph (2) the following new paragraph:
``(3) The use of side-by-side testing under this subsection may be
considered to be the use of competitive procedures for purposes of
chapter 137 of this title, when procuring items within 5 years after an
initial determination that the items have been successfully tested and
found to satisfy United States military requirements or to correct
operational deficiencies.''.

[[Page 2281]]

SEC. 828. DEFENSE ACQUISITION CHALLENGE PROGRAM AMENDMENTS.

(a) Expansion of Scope To Include Systems-of-systems and
Functions.--Paragraph (2) of subsection (a) of section 2359b of title
10, United States Code, is amended by striking ``or system'' and all
that follows through the end of the paragraph and inserting the
following: ``system, or system-of-systems level of an existing
Department of Defense acquisition program, or to address any broader
functional challenge to Department of Defense missions that may not fall
within an acquisition program, that would result in improvements in
performance, affordability, manufacturability, or operational capability
of that acquisition program or function.''.
(b) Treatment of Challenge Proposal Procedures as Use of Competitive
Procedures.--Such section is further amended--
(1) by redesignating subsections (j) and (k) as subsections
(k) and (l), respectively; and
(2) by inserting after subsection (i) the following new
subsection:

``(j) Treatment of Use of Certain Procedures as Use of Competitive
Procedures.--The use of general solicitation competitive procedures
established under subsection (c) shall be considered to be the use of
competitive procedures for purposes of chapter 137 of this title.''.
(c) Extension of Sunset for Pilot Program for Programs Other Than
Major Defense Acquisition Programs.--Such section is further amended in
paragraph (5) of subsection (l), as redesignated by subsection (b)(1) of
this subsection, by striking ``2016'' and inserting ``2021''.
(d) Conforming Amendments.--Such section is further amended--
(1) in subsection (c)(3), by inserting ``or functions''
after ``acquisition programs'';
(2) in subsection (c)(4)(A)--
(A) by striking ``and'' at the end of clause (i);
(B) by striking the period at the end of clause (ii)
and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(iii) any functional challenges of importance to
Department of Defense missions.'';
(3) in subsection (c)(5), by adding at the end the following
new subparagraph:
``(D) Whether the challenge proposal is likely to
result in improvements to any functional challenges of
importance to Department of Defense missions, and
whether the proposal could be implemented rapidly, at an
acceptable cost, and without unacceptable disruption to
such missions.''; and
(4) in subsection (c)(5)(B) and in subsection (e)(1), by
striking ``or system'' and inserting ``system, or system-of-
systems''.
SEC. 829. <>  PREFERENCE FOR FIXED-PRICE
CONTRACTS.

(a) Establishment of Preference.--Not later than 180 days after the
date of the enactment of this Act, the Defense Federal Acquisition
Regulation Supplement shall be revised to establish a preference for
fixed-price contracts, including fixed-price incentive fee contracts, in
the determination of contract type.

[[Page 2282]]

(b) Approval Requirement for Certain Cost-type Contracts.--
(1) In general.--A contracting officer of the Department of
Defense may not enter into a cost-type contract described in
paragraph (2) unless the contract is approved by the service
acquisition executive of the military department concerned, the
head of the Defense Agency concerned, the commander of the
combatant command concerned, or the Under Secretary of Defense
for Acquisition, Technology, and Logistics (as applicable).
(2) Covered contracts.--A contract described in this
paragraph is--
(A) a cost-type contract in excess of $50,000,000,
in the case of a contract entered into on or after
October 1, 2018, and before October 1, 2019; and
(B) a cost-type contract in excess of $25,000,000,
in the case of a contract entered into on or after
October 1, 2019.
SEC. 830. <>  REQUIREMENT TO USE FIRM
FIXED-PRICE CONTRACTS FOR FOREIGN MILITARY
SALES.

(a) Requirement.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall prescribe
regulations to require the use of firm fixed-price contracts for foreign
military sales.
(b) Exceptions.--The regulations prescribed pursuant to subsection
(a) shall include exceptions that may be exercised if the foreign
country that is the counterparty to a foreign military sale--
(1) has established in writing a preference for a different
contract type; or
(2) requests in writing that a different contract type be
used for a specific foreign military sale.

(c) Waiver Authority.--The regulations prescribed pursuant to
subsection (a) shall include a waiver that may be exercised by the
Secretary of Defense or his designee if the Secretary or his designee
determines on a case-by-case basis that a different contract type is in
the best interest of the United States and American taxpayers.
(d) Pilot Program for Acceleration of Foreign Military Sales.--
(1) In general.--The Secretary of Defense shall establish a
pilot program to reform and accelerate the contracting and
pricing processes associated with full rate production of major
weapon systems for no more than 10 foreign military sales
contracts by--
(A) basing price reasonableness determinations on
actual cost and pricing data for purchases of the same
product for the Department of Defense; and
(B) reducing the cost and pricing data to be
submitted in accordance with section 2306a of title 10,
United States Code.
(2) Expiration of authority.--Authority for the pilot
program under this subsection expires on January 1, 2020.
SEC. 831. PREFERENCE FOR PERFORMANCE-BASED CONTRACT PAYMENTS.

(a) In General.--Section 2307(b) of title 10, United States Code, is
amended--

[[Page 2283]]

(1) in the subsection heading, by inserting ``Preference
for'' before ``Performance-based'';
(2) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(3) by striking ``Wherever practicable, payment under
subsection (a) shall be made'' and inserting ``(1) Whenever
practicable, payments under subsection (a) shall be made using
performance-based payments''; and
(4) by adding at the end the following new paragraphs:

``(2) Performance-based payments shall not be conditioned upon costs
incurred in contract performance but on the achievement of performance
outcomes listed in paragraph (1).
``(3) The Secretary of Defense shall ensure that nontraditional
defense contractors and other private sector companies are eligible for
performance-based payments, consistent with best commercial practices.
``(4)(A) In order to receive performance-based payments, a
contractor's accounting system shall be in compliance with Generally
Accepted Accounting Principles, and there shall be no requirement for a
contractor to develop Government-unique accounting systems or practices
as a prerequisite for agreeing to receive performance-based payments.
``(B) Nothing in this section shall be construed to grant the
Defense Contract Audit Agency the authority to audit compliance with
Generally Accepted Accounting Principles.''.
(b) <>  Regulations.--Not later than 120
days after the date of the enactment of this Act, the Secretary of
Defense shall revise the Department of Defense Federal Acquisition
Regulation Supplement to conform with section 2307(b) of title 10,
United States Code, as amended by subsection (a).
SEC. 832. <>  CONTRACTOR INCENTIVES TO
ACHIEVE SAVINGS AND IMPROVE MISSION
PERFORMANCE.

Not later than 180 days after the date of the enactment of this Act,
the Defense Acquisition University shall develop and implement a
training program for Department of Defense acquisition personnel on
fixed-priced incentive fee contracts, public-private partnerships,
performance-based contracting, and other authorities in law and
regulation designed to give incentives to contractors to achieve long-
term savings and improve administrative practices and mission
performance.
SEC. 833. SUNSET AND REPEAL OF CERTAIN CONTRACTING PROVISIONS.

(a) Sunsets.--
(1) Plantations and farms: operation, maintenance, and
improvement.--Section 2421 of title 10, United States Code, is
amended by adding at the end the following new subsection:

``(e) Sunset.--The authority under this section shall terminate on
September 30, 2018.''.
(2) Requirement to establish cost, performance, and schedule
goals for major defense acquisition programs and each phase of
related acquisition cycles.--Section 2220 of title 10, United
States Code, is amended by adding at the end the following new
subsection:

``(c) Sunset.--The authority under this section shall terminate on
September 30, 2018.''.

[[Page 2284]]

(b) Repeals.--
(1) Limitation on use of operation and maintenance funds for
purchase of investment items.--
(A) In general.--Section 2245a of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of subchapter I of chapter 134 <> of such title is amended by striking
the item relating to section 2245a.
(C) Conforming amendment.--Section 166a(e)(1)(A) of
such title is amended by striking ``the investment unit
cost threshold in effect under section 2245a of this
title'' and inserting ``$250,000''.
(2) Information technology purchases: tracking and
management.--
(A) In general.--Section 2225 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 131 of such title <> is amended by striking the item
relating to section 2225.
(C) Conforming amendments.--
(i) Section 812 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year
2001 (Public Law 106-393; 114 Stat. 1654A-213; 10
U.S.C. 2225 note) is amended by striking
subsections (b) and (c).
(ii) Section 2330a(j) of title 10, United
States Code, is amended--
(I) by striking paragraph (2);
(II) by redesignating paragraphs
(3), (4), and (5) as paragraphs (2),
(3), and (4), respectively; and
(III) by adding at the end the
following new paragraphs:
``(5) Simplified acquisition threshold.--The term
`simplified acquisition threshold' has the meaning given the
term in section 134 of title 41.
``(6) Small business act definitions.--
``(A) The term `small business concern' has the
meaning given such term under section 3 of the Small
Business Act (15 U.S.C. 632).
``(B) The terms `small business concern owned and
controlled by socially and economically disadvantaged
individuals' and `small business concern owned and
controlled by women' have the meanings given such terms,
respectively, in section 8(d)(3) of the Small Business
Act (15 U.S.C. 637(d)(3)).''.
(iii) Section 222(d) of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law
112-81; 10 U.S.C. 2358 note) is amended by
striking ``as defined in section 2225(f)(3)'' and
inserting ``as defined in section 2330a(j)''.
(3) Procurement of copier paper containing specified
percentages of post-consumer recycled content.--
(A) In general.--Section 2378 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 140 of such title <> is amended by striking the item
relating to section 2378.

[[Page 2285]]

(4) Limitation on procurement of table and kitchen equipment
for officers' quarters.--
(A) In general.--Section 2387 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 141 of such title <> is amended by striking the item
relating to section 2387.
(5) Implementation of electronic commerce capability.--
(A) Repeal.--
(i) Section 2302c of title 10, United States
Code, is repealed.
(ii) Section 2301 of title 41, United States
Code, is amended by adding at the end the
following new subsection:

``(f) Inapplicability to Department of Defense.--In this section,
the term `executive agency' does not include the Department of
Defense.''.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 137 of such title <> is amended by striking the item
relating to section 2302c.
SEC. 834. <>  FLEXIBILITY IN CONTRACTING
AWARD PROGRAM.

(a) Establishment of Award Program.--The Secretary of Defense shall
create an award to recognize those acquisition programs and
professionals that make the best use of the flexibilities and
authorities granted by the Federal Acquisition Regulation and Department
of Defense Instruction 5000.02 (Operation of the Defense Acquisition
System).
(b) Purpose of Award.--The award established under subsection (a)
shall recognize outstanding performers whose approach to program
management emphasizes innovation and local adaptation, including the use
of--
(1) simplified acquisition procedures;
(2) inherent flexibilities within the Federal Acquisition
Regulation;
(3) commercial contracting approaches;
(4) public-private partnership agreements and practices;
(5) cost-sharing arrangements;
(6) innovative contractor incentive practices; and
(7) other innovative implementations of acquisition
flexibilities.
SEC. 835. PROTECTION OF TASK ORDER COMPETITION.

(a) Amendment to Value of Authorized Task Order Protests.--Section
2304c(e)(1)(B) of title 10, United States Code, is amended by striking
``$10,000,000'' and inserting ``$25,000,000''.
(b) Repeal of Effective Date.--Section 4106(f) of title 41, United
States Code, is amended by striking paragraph (3).
SEC. 836. <>  CONTRACT CLOSEOUT
AUTHORITY.

(a) Authority.--The Secretary of Defense may close out a contract or
group of contracts as described in subsection (b) through the issuance
of one or more modifications to such contracts without completing a
reconciliation audit or other corrective action. To accomplish closeout
of such contracts--
(1) remaining contract balances may be offset with balances
in other contract line items within a contract regardless of

[[Page 2286]]

the year or type of appropriation obligated to fund each
contract line item and regardless of whether the appropriation
for such contract line item has closed; and
(2) remaining contract balances may be offset with balances
on other contracts regardless of the year or type of
appropriation obligated to fund each contract and regardless of
whether the appropriation has closed.

(b) Covered Contracts.--This section covers any contract or group of
contracts between the Department of Defense and a defense contractor,
each one of which--
(1) was entered into prior to fiscal year 2000;
(2) has no further supplies or services deliverables due
under the terms and conditions of the contract; and
(3) is determined by the Secretary of Defense to be not
otherwise reconcilable because--
(A) the records have been destroyed or lost; or
(B) the records are available but the Secretary of
Defense has determined that the time or effort required
to determine the exact amount owed to the United States
Government or amount owed to the contractor is
disproportionate to the amount at issue.

(c) Negotiated Settlement Authority.--Any contract or group of
contracts covered by this section may be closed out through a negotiated
settlement with the contractor.
(d) Waiver Authority.--
(1) In general.--The Secretary of Defense is authorized to
waive any provision of acquisition law or regulation to carry
out the authority under subsection (a).
(2) Notification requirement.--The Secretary of Defense
shall notify the congressional defense committees not later than
10 days after exercising the authority under subsection (d). The
notice shall include an identification of each provision of law
or regulation waived.

(e) Adjustment and Closure of Records.--After closeout of any
contract described in subsection (b) using the authority under this
section, the payment or accounting offices concerned may adjust and
close any open finance and accounting records relating to the contract.
(f) No Liability.--No liability shall attach to any accounting,
certifying, or payment official, or any contracting officer, for any
adjustments or closeout made pursuant to the authority under this
section.
(g) Regulations.--The Secretary of Defense shall prescribe
regulations for the administration of the authority under this section.
SEC. 837. CLOSEOUT OF OLD DEPARTMENT OF THE NAVY CONTRACTS.

(a) Authority.--The Secretary of the Navy may close out contracts
described in subsection (b) through the issuance of one or more
modifications to such contracts without completing further
reconciliation audits or corrective actions other than those described
in this section. To accomplish closeout of such contracts--
(1) remaining contract balances may be offset with balances
in other contract line items within a contract regardless of the
year or type of appropriation obligated to fund each contract
line item and regardless of whether the appropriation for such
contract line item has closed; and

[[Page 2287]]

(2) remaining contract balances may be offset with balances
on other contracts regardless of the year or type of
appropriation obligated to fund each contract and regardless of
whether the appropriation has closed.

(b) Contracts Covered.--The contracts covered by this section are a
group of contracts that are with one contractor and identified by the
Secretary, each one of which is a contract--
(1) to design, construct, repair, or support the
construction or repair of Navy submarines that--
(A) was entered into between fiscal years 1974 and
1998; and
(B) has no further supply or services deliverables
due under the terms and conditions of the contract;
(2) with respect to which the Secretary of the Navy has
established the total final contract value; and
(3) with respect to which the Secretary of the Navy has
determined that the final allowable cost may have a negative or
positive unliquidated obligation balance for which it would be
difficult to determine the year or type of appropriation
because--
(A) the records for the contract have been destroyed
or lost; or
(B) the records for the contract are available but
the contracting officer, in collaboration with the
certifying official, has determined that a discrepancy
is of such a minimal value that the time and effort
required to determine the cause of an out-of-balance
condition is disproportionate to the amount of the
discrepancy.

(c) Closeout Terms.--The contracts described in subsection (b) may
be closed out--
(1) upon receipt of $581,803 from the contractor to be
deposited into the Treasury as miscellaneous receipts;
(2) without seeking further amounts from the contractor; and
(3) without payment to the contractor of any amounts that
may be due under any such contracts.

(d) Waiver Authority.--
(1) In general.--The Secretary of the Navy is authorized to
waive any provision of acquisition law or regulation to carry
out the authority under subsection (a).
(2) Notification requirement.--The Secretary of the Navy
shall notify the congressional defense committees not later than
10 days after exercising the authority under paragraph (1). The
notice shall include an identification of each provision of law
or regulation waived.

(e) Adjustment and Closure of Records.--After closeout of any
contract described in subsection (b) using the authority under this
section, the payment or accounting offices concerned may adjust and
close any open finance and accounting records relating to the contract.
(f) No Liability.--No liability shall attach to any accounting,
certifying, or payment official or contracting officer for any
adjustments or closeout made pursuant to the authority under this
section.
(g) Expiration of Authority.--The authority under this section shall
expire upon receipt of the funds identified in subsection (c)(1).

[[Page 2288]]

Subtitle D--Provisions Relating to Major Defense Acquisition Programs

SEC. 841. CHANGE IN DATE OF SUBMISSION TO CONGRESS OF SELECTED
ACQUISITION REPORTS.

Section 2432(f) of title 10, United States Code, is amended by
striking ``45'' the first place it occurs and inserting ``30''.
SEC. 842. AMENDMENTS RELATING TO INDEPENDENT COST ESTIMATION AND
COST ANALYSIS.

(a) Amendments.--Section 2334 of title 10, United States Code, is
amended--
(1) in subsection (a)(3), by striking ``selection of
confidence levels'' both places it appears and inserting
``discussion of risk'';
(2) in subsection (a)(6)--
(A) by inserting ``or approve'' after ``conduct'';
(B) by striking ``major defense acquisition
programs'' and all that follows through ``Authority--''
and inserting ``all major defense acquisition programs
and major subprograms--''; and
(C) in subparagraph (B), by striking ``or upon the
request'' and all that follows through the semicolon at
the end and inserting ``, upon the request of the Under
Secretary of Defense for Acquisition, Technology, and
Logistics, or upon the request of the milestone decision
authority'';
(3) by redesignating subsections (b), (c), (d), (e), and (f)
as subsections (c), (d), (e), (f), and (h), respectively;
(4) by inserting after subsection (a) the following new
subsection (b):

``(b) Independent Cost Estimate Required Before Approval.--(1) A
milestone decision authority may not approve entering a milestone phase
of a major defense acquisition program or major subprogram unless an
independent cost estimate has been conducted or approved by the Director
of Cost Assessment and Program Evaluation and considered by the
milestone decision authority that--
``(A) for the technology maturation and risk reduction
phase, includes the identification and sensitivity analysis of
key cost drivers that may affect life-cycle costs of the program
or subprogram; and
``(B) for the engineering and manufacturing development
phase, or production and deployment phase, includes a cost
estimate of the full life-cycle cost of the program or
subprogram.

``(2) The regulations governing the content and submission of
independent cost estimates required by subsection (a) shall require that
the independent cost estimate of the full life-cycle cost of a program
or subprogram include--
``(A) all costs of development, procurement, military
construction, operations and support, and trained manpower to
operate, maintain, and support the program or subprogram upon
full operational deployment, without regard to funding source or
management control; and
``(B) an analysis to support decisionmaking that identifies
and evaluates alternative courses of action that may reduce

[[Page 2289]]

cost and risk, and result in more affordable programs and less
costly systems.'';
(5) in subsection (d), as so redesignated, in paragraph (3),
by striking ``confidence level'' and inserting ``discussion of
risk'';
(6) in subsection (e), as so redesignated--
(A) by amending the subsection heading to read as
follows: ``Discussion of Risk in Cost Estimates.--'';
(B) by amending paragraph (1) to read as follows:
``(1) issue guidance requiring a discussion of risk, the
potential impacts of risk on program costs, and approaches to
mitigate risk in cost estimates for major defense acquisition
programs and major subprograms;'';
(C) in paragraph (2)--
(i) by striking ``such confidence level
provides'' and inserting ``cost estimates are
developed, to the extent practicable, based on
historical actual cost information that is based
on demonstrated contractor and Government
performance and that such estimates provide''; and
(ii) by inserting ``or subprogram'' after
``the program''; and
(D) in paragraph (3), by striking ``disclosure
required by paragraph (1)'' and inserting ``information
required in the guidance under paragraph (1)''; and
(7) by inserting after subsection (f), as so redesignated,
the following new subsection:

``(g) Guidelines and Collection of Cost Data.--(1) The Director of
Cost Assessment and Program Evaluation shall, in consultation with the
Under Secretary of Defense for Acquisition, Technology, and Logistics,
develop policies, procedures, guidance, and a collection method to
ensure that quality acquisition cost data are collected to facilitate
cost estimation and comparison across acquisition programs.
``(2) The program manager and contracting officer for each
acquisition program in an amount greater than $100,000,000, in
consultation with the cost estimating component of the relevant military
department or Defense Agency, shall ensure that cost data are collected
in accordance with the requirements of paragraph (1).
``(3) The requirement under paragraph (1) may be waived only by the
Director of Cost Assessment and Program Evaluation.''.
(b) Conforming Amendments to Add Subprograms.--Section 2334 of such
title is further amended--
(1) in subsection (a)(2), by inserting ``or major
subprogram'' before ``under chapter 144'';
(2) in paragraphs (3), (4), and (5) of subsection (a) and in
subsection (c)(1) (as redesignated by subsection (a) of this
section), by striking ``major defense acquisition programs and
major automated information system programs'' and inserting
``major defense acquisition programs and major subprograms''
each place it appears;
(3) in paragraphs (1) and (2) of subsection (d) (as so
redesignated), and in subsection (f)(4) (as so redesignated), by
striking ``major defense acquisition program or major automated
information system program'' and inserting ``major defense
acquisition program or major subprogram'' each place it appears;

[[Page 2290]]

(4) in subsection (d)(4) (as so redesignated), by inserting
before the period ``or major subprogram'';
(5) in subsection (e)(3)(B) (as so redesignated), by
inserting ``or major subprogram'' after ``major defense
acquisition program''; and
(6) in subsection (f)(3) (as so redesignated), by striking
``major defense acquisition program and major automated
information system program'' and inserting ``major defense
acquisition program and major subprogram''.

(c) Repeal.--Chapter 144 of such title is amended--
(1) by striking section 2434; and
(2) <>  in the table of sections at
the beginning of such chapter, by striking the item relating to
such section.
SEC. 843. REVISIONS TO MILESTONE B DETERMINATIONS.

Section 2366b(a)(3) of title 10, United States Code, is amended--
(1) in subparagraph (B), by striking ``acquisition cost in''
and all that follows through the semicolon, and inserting
``life-cycle cost;''; and
(2) in subparagraph (D), by striking ``funding is'' and all
that follows through ``made,'' and inserting ``funding is
expected to be available to execute the product development and
production plan for the program,''.
SEC. 844. REVIEW AND REPORT ON SUSTAINMENT PLANNING IN THE
ACQUISITION PROCESS.

(a) Requirement for Review.--The Secretary of Defense shall conduct
a review of the extent to which sustainment matters are considered in
decisions related to the requirements, research and development,
acquisition, cost estimating, and programming and budgeting processes
for major defense acquisition programs. The review shall include the
following:
(1) A determination of whether information related to the
operation and sustainment of major defense acquisition programs,
including cost data and intellectual property requirements, is
available to inform decisions made during those processes.
(2) If such information exists, an evaluation of the
completeness, timeliness, quality, and suitability of the
information for aiding in decisions made during those processes.
(3) A determination of whether information related to the
operation and sustainment of existing major weapon systems is
used to forecast the operation and sustainment needs of major
weapon systems proposed for or under development.
(4) A description of the potential benefits from improved
completeness, timeliness, quality, and suitability of data on
operation and support costs and increased consideration of such
data.
(5) Recommendations for improving access to, analyses of,
and consideration of operation and support cost data.
(6) An assessment of product support strategies for major
weapon systems required by section 2337 of title 10, United
States Code, or other similar life-cycle sustainment strategies,
including an evaluation of--
(A) the stage at which such strategies are developed
during the life of a major weapon system;

[[Page 2291]]

(B) the content and completeness of such strategies,
including whether such strategies address--
(i) all aspects of total life-cycle management
of a major weapon system, including product
support, logistics, product support engineering,
supply chain integration, maintenance, and
software sustainment; and
(ii) the capabilities, capacity, and resource
constraints of the organic industrial base and the
materiel commands of the military department
concerned;
(C) the extent to which such strategies or their
elements are or should be incorporated into the
acquisition strategy required by section 2431a of title
10, United States Code;
(D) the extent to which such strategies influence
the planning for major defense acquisition programs; and
(E) the extent to which such strategies influence
decisions related to the life-cycle management and
product support of major weapon systems.
(7) An assessment of how effectively the military
departments consider sustainment matters at key decision points
for acquisition and life-cycle management in accordance with the
requirements of sections 2431a, 2366a, 2366b, and 2337 of title
10, United States Code, and section 832 of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10
U.S.C. 2430 note).
(8) Recommendations for improving the consideration of
sustainment during the requirements, acquisition, cost
estimating, programming and budgeting processes.
(9) An assessment of whether research and development
efforts and adoption of commercial technologies is prioritized
to reduce sustainment costs.
(10) An assessment of whether alternate financing methods,
including share-in-savings approaches, public-private
partnerships, and energy savings performance contracts, could be
used to encourage the development and adoption of technologies
and practices that will reduce sustainment costs.
(11) An assessment of private sector best practices in
assessing and reducing sustainment costs for complex systems.

(b) Agreement With Independent Entity.--Not later than 60 days after
the date of the enactment of this Act, the Secretary shall enter into an
agreement with an independent entity with appropriate expertise to
conduct the review required by subsection (a). The Secretary shall
ensure that the independent entity has access to all data, information,
and personnel required, and is funded, to satisfactorily complete the
review required by subsection (a). The agreement also shall require the
entity to provide to the Secretary a report on the findings of the
entity.
(c) Briefing.--Not later than April 1, 2017, the Secretary shall
provide a briefing to the Committees on Armed Services of the Senate and
House of Representatives on the preliminary findings of the independent
entity.
(d) Submission to Congress.--Not later than August 1, 2017, the
Secretary shall submit to the congressional defense committees a copy of
the report of the independent entity, along with comments on the report,
proposed revisions or clarifications to laws related to lifecycle
management or sustainment planning for major weapon

[[Page 2292]]

systems, and a description of any actions the Secretary may take to
revise or clarify regulations and practices related to life-cycle
management or sustainment planning for major weapon systems.
SEC. 845. REVISION TO DISTRIBUTION OF ANNUAL REPORT ON OPERATIONAL
TEST AND EVALUATION.

Section 139(h) of title 10, United States Code, is amended--
(1) in paragraph (2)--
(A) by inserting ``the Secretaries of the military
departments,'' after ``Logistics,''; and
(B) by striking ``10 days'' and all that follows
through ``title 31'' and inserting ``January 31 of each
year, through January 31, 2021''; and
(2) in paragraph (5), by inserting after ``Secretary'' the
following: ``of Defense and the Secretaries of the military
departments''.
SEC. 846. <>  REPEAL OF MAJOR AUTOMATED
INFORMATION SYSTEMS PROVISIONS.

Effective September 30, 2017--
(1) <>  chapter 144A of title 10, United States
Code, is repealed;
(2) the tables of chapters at the beginning of subtitle A of
such title, and at the beginning of part IV of subtitle A, are
amended by striking the item relating to chapter 144A; and
(3) section 2334(a)(2) of title 10, United States Code, is
amended by striking ``or a major automated information system
under chapter 144A of this title''.
SEC. 847. REVISIONS TO DEFINITION OF MAJOR DEFENSE ACQUISITION
PROGRAM.

(a) In General.--Section 2430 of title 10, United States Code, is
amended in subsection (a)--
(1) by redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively;
(2) by striking ``In this chapter'' and inserting ``(1)
Except as provided under paragraph (2), in this chapter''; and
(3) by adding at the end the following new paragraph:

``(2) In this chapter, the term `major defense acquisition program'
does not include an acquisition program or project that is carried out
using the rapid fielding or rapid prototyping acquisition pathway under
section 804 of the National Defense Authorization Act for Fiscal Year
2016 (Public Law 114-92; 10 U.S.C. 2302 note).''.
(b) <>  Annual Reporting.--The Secretary of
Defense shall include in each comprehensive annual Selected Acquisition
Report submitted under section 2432 of title 10, United States Code, a
listing of all programs or projects being developed or procured under
the exceptions to the definition of major defense acquisition program
set forth in paragraph (2) of section 2430(a) of United States Code, as
added by subsection (a)(1)(C) of this section.
SEC. 848. ACQUISITION STRATEGY.

Section 2431a of title 10, United States Code, is amended--
(1) in subsection (b), by inserting ``, or the milestone
decision authority, when the milestone decision authority is the
service acquisition executive of the military department that

[[Page 2293]]

is managing the program,'' after ``the Under Secretary of
Defense for Acquisition, Technology, and Logistics'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``, or the
milestone decision authority, when the milestone
decision authority is the service acquisition executive
of the military department that is managing the
program,'' after ``the Under Secretary''; and
(B) in paragraph (2)(C), by striking ``, in
accordance with section 2431b of this title''; and
(3) in subsection (d)--
(A) in paragraph (1), by striking ``(1) Subject to
the authority, direction, and control of the Under
Secretary of Defense for Acquisition, Technology, and
Logistics, the'' and inserting ``The''; and
(B) in paragraph (2), by inserting ``because of a
change described in paragraph (1)(F)'' after ``for a
program or system''.
SEC. 849. IMPROVED LIFE-CYCLE COST CONTROL.

(a) Modified Guidance for Rapid Fielding Pathway.--Section 804(c)(3)
of the National Defense Authorization Act for Fiscal Year 2016 (Public
Law 114-92; 10 U.S.C. 2302 note) is amended--
(1) in subparagraph (C), by striking ``; and'' and inserting
a semicolon;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(E) a process for identifying and exploiting
opportunities to use the rapid fielding pathway to
reduce total ownership costs.''.

(b) Life-cycle Cost Management.--Section 805(2) of such Act (Public
Law 114-92; 10 U.S.C. 2302 note) is amended by inserting ``life-cycle
cost management,'' after ``budgeting,''.
(c) Sustainment Reviews.--
(1) In general.--Chapter 144 of title 10, United States
Code, is amended by adding at the end the following new section:
``Sec. 2441. <>  Sustainment reviews

``(a) In General.--The Secretary of each military department shall
conduct a sustainment review of each major weapon system not later than
five years after declaration of initial operational capability of a
major defense acquisition program and throughout the life cycle of the
weapon system to assess the product support strategy, performance, and
operation and support costs of the weapon system. For any review after
the first one, the Secretary concerned shall use availability and
reliability thresholds and cost estimates as the basis for the
circumstances that prompt such a review. The results of the sustainment
review shall be documented in a memorandum by the relevant decision
authority.
``(b) Elements.--At a minimum, the review required under subsection
(a) shall include the following elements:
``(1) An independent cost estimate for the remainder of the
life cycle of the program.
``(2) A comparison of actual costs to the amount of funds
budgeted and appropriated in the previous five years, and

[[Page 2294]]

if funding shortfalls exist, an explanation of the implications
on equipment availability.
``(3) A comparison between the assumed and achieved system
reliabilities.
``(4) An analysis of the most cost-effective source of
repairs and maintenance.
``(5) An evaluation of the cost of consumables and depot-
level repairables.
``(6) An evaluation of the costs of information technology,
networks, computer hardware, and software maintenance and
upgrades.
``(7) As applicable, an assessment of the actual fuel
efficiencies compared to the projected fuel efficiencies as
demonstrated in tests or operations.
``(8) As applicable, a comparison of actual manpower
requirements to previous estimates.
``(9) An analysis of whether accurate and complete data are
being reported in the cost systems of the military department
concerned, and if deficiencies exist, a plan to update the data
and ensure accurate and complete data are submitted in the
future.

``(c) Coordination.--The review required under subsection (a) shall
be conducted in coordination with the requirements of section 2337 of
this title and section 832 of the National Defense Authorization Act for
Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 2430 note).''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter <> is amended
by adding at the end the following new item:

``2441. Sustainment reviews.''.

(d) <>  Commercial Operational and Support
Savings Initiative.--
(1) In general.--The Secretary of Defense may establish a
commercial operational and support savings initiative to improve
readiness and reduce operations and support costs by inserting
existing commercial items or technology into military legacy
systems through the rapid development of prototypes and fielding
of production items based on current commercial technology.
(2) Program priority.--The commercial operational and
support savings initiative shall fund programs that--
(A) reduce the costs of owning and operating a
military system, including the costs of personnel,
consumables, goods and services, and sustaining the
support and investment associated with the peacetime
operation of a weapon system;
(B) take advantage of the commercial sector's
technological innovations by inserting commercial
technology into fielded weapon systems; and
(C) emphasize prototyping and experimentation with
new technologies and concepts of operations.
(3) Funding phases.--
(A) In general.--Projects funded under the
commercial operational and support savings initiative
shall consist of two phases, Phase I and Phase II.

[[Page 2295]]

(B) Phase i.--(i) Funds made available during Phase
I shall be used to perform the non-recurring
engineering, testing, and qualification that are
typically needed to adapt a commercial item or
technology for use in a military system.
(ii) Phase I shall include--
(I) establishment of cost and performance
metrics to evaluate project success;
(II) establishment of a transition plan and
agreement with a military department or Defense
Agency for adoption and sustainment of the
technology or system; and
(III) the development, fabrication, and
delivery of a demonstrated prototype to a military
department for installation into a fielded
Department of Defense system.
(iii) Programs shall be terminated if no agreement
is established within two years of project initiation.
(iv) The Office of the Secretary of Defense may
provide up to 50 percent of Phase I funding for a
project. The military department or Defense Agency
concerned may provide the remainder of Phase I funding,
which may be provided out of operation and maintenance
funding.
(v) Phase I funding shall not exceed three years.
(vi) Phase I projects shall be selected based on a
merit-based process using criteria to be established by
the Secretary of Defense.
(C) Phase ii.--(i) Phase II shall include the
purchase of limited production quantities of the
prototype kits and transition to a program of record for
continued sustainment.
(ii) Phase II awards may be made without competition
if general solicitation competitive procedures were used
for the selection of parties for participation in a
Phase I project.
(iii) Phase II awards may be made as firm fixed-
price awards.
(4) Treatment as competitive procedures.--The use of a
merit-based process for selection of projects under the
commercial operational and support savings initiative shall be
considered to be the use of competitive procedures for purposes
of chapter 137 of title 10, United States Code.
SEC. 850. AUTHORITY TO DESIGNATE INCREMENTS OR BLOCKS OF ITEMS
DELIVERED UNDER MAJOR DEFENSE ACQUISITION
PROGRAMS AS MAJOR SUBPROGRAMS FOR PURPOSES
OF ACQUISITION REPORTING.

Section 2430a(1)(B) of title 10, United States Code, is amended by
striking ``major defense acquisition program to purchase satellites
requires the delivery of satellites in two or more increments or
blocks'' and inserting ``major defense acquisition program requires the
delivery of two or more increments or blocks''.
SEC. 851. REPORTING OF SMALL BUSINESS PARTICIPATION ON DEPARTMENT
OF DEFENSE PROGRAMS.

(a) Report Requirement.--Not later than March 31 of each year, the
Secretary of Defense shall submit to the congressional

[[Page 2296]]

defense committees a report covering the following matters for the
preceding fiscal year:
(1) For each prime contract goal established by section
15(g)(1)(A) of the Small Business Act (15 U.S.C. 644(g)(1)(A)),
the total value and percentage of prime contracts awarded by the
Department of Defense and attributed to each prime contract goal
for prime contracts awarded for major defense acquisition
programs.
(2) For each subcontract goal established by section
15(g)(1)(A) of the Small Business Act (15 U.S.C. 644(g)(1)(A)),
the total value and percentage of first tier subcontract awards
attributed to each subcontract goal for subcontracts awarded in
support of prime contracts awarded by the Department of Defense
for major defense acquisition programs.
(3) For the prime contract and subcontract goals negotiated
with the Department of Defense pursuant to section 15(g)(2) of
the Small Business Act (15 U.S.C. 644(g)(2))--
(A) the information reported by the Department of
Defense to the Small Business Administration pursuant to
section 15(h)(1) of the Small Business Act (15 U.S.C.
644(h)(1)); and
(B) the information required by subparagraph (A)
calculated after excluding--
(i) contracts awarded pursuant to chapter 85
of title 41, United States Code (popularly
referred to as the Javits-Wagner-O'Day Act);
(ii) contracts awarded to the American
Institute in Taiwan;
(iii) contracts awarded and performed outside
of the United States;
(iv) acquisition on behalf of foreign
governments, entities, or international
organizations; and
(v) contracts for major defense acquisition
programs.

(b) Sunset.--The requirement to submit a report under subsection (a)
shall not apply after the Secretary submits the report covering fiscal
year 2020.
SEC. 852. WAIVER OF CONGRESSIONAL NOTIFICATION FOR ACQUISITION OF
TACTICAL MISSILES AND MUNITIONS GREATER
THAN QUANTITY SPECIFIED IN LAW.

Section 2308(c) of title 10, United States Code, is amended--
(1) by inserting ``(1)'' before ``The head'';
(2) by inserting ``, except as provided in paragraph (2),''
after ``but''; and
(3) by adding at the end the following new paragraph:

``(2) A notification is not required under paragraph (1) if the end
item being acquired in a higher quantity is an end item under a tactical
missile program or a munitions program.''.
SEC. 853. <>  MULTIPLE PROGRAM MULTIYEAR
CONTRACT PILOT DEMONSTRATION PROGRAM.

(a) Authority.--The Secretary of Defense may conduct a multiyear
contract, over a period of up to four years, for the purchase of units
for multiple defense programs that are produced at common facilities at
a high rate, and which maximize commonality, efficiencies, and quality,
in order to provide maximum benefit to the Department of Defense.
Contracts awarded under

[[Page 2297]]

this section should allow for significant savings, as determined
consistent with the authority under section 2306b of title 10, United
States Code, to be achieved as compared to using separate annual
contracts under individual programs to purchase such units, and may
include flexible delivery across the overall period of performance.
(b) Scope.--The contracts authorized in subsection (a) shall at a
minimum provide for the acquisition of units from three discrete
programs from two of the military departments.
(c) Documentation.--Each contract awarded under subsection (a) shall
include the documentation required to be provided for a multiyear
contract proposal under section 2306b(i) of title 10.
(d) Definitions.--In this section:
(1) The term ``high rate'' means total annual production
across the multiple defense programs of more than 200 end-items
per year.
(2) The term ``common facilities'' means production
facilities operating within the same general and allowable rate
structure.

(e) Sunset.--No new contracts may be awarded under the authority of
this section after September 30, 2021.
SEC. 854. <>  KEY PERFORMANCE PARAMETER
REDUCTION PILOT PROGRAM.

(a) In General.--The Secretary of Defense may carry out a pilot
program under which the Secretary may identify at least one acquisition
program in each military department for reduction of the total number of
key performance parameters established for the program, for purposes of
determining whether operational and programmatic outcomes of the program
are improved by such reduction.
(b) Limitation on Key Performance Parameters.--Any acquisition
program identified for the pilot program carried out under subsection
(a) shall establish no more than three key performance parameters, each
of which shall describe a program-specific performance attribute. Any
key performance parameters for such a program that are required by
statute shall be treated as key system attributes.
SEC. 855. <>  MISSION INTEGRATION
MANAGEMENT.

(a) In General.--The Secretary of Defense shall establish mission
integration management activities for each mission area specified in
subsection (b).
(b) Covered Mission Areas.--The mission areas specified in this
subsection are mission areas that involve multiple Armed Forces and
multiple programs and, at a minimum, include the following:
(1) Close air support.
(2) Air defense and offensive and defensive counter-air.
(3) Interdiction.
(4) Intelligence, surveillance, and reconnaissance.
(5) Any other overlapping mission area of significance, as
jointly designated by the Deputy Secretary of Defense and the
Vice Chairman of the Joint Chiefs of Staff for purposes of this
subsection.

(c) Qualifications.--Mission integration management activities shall
be performed by qualified personnel from the acquisition and operational
communities.

[[Page 2298]]

(d) Responsibilities.--The mission integration management activities
for a mission area under this section shall include--
(1) development of technical infrastructure for engineering,
analysis, and test, including data, modeling, analytic tools,
and simulations;
(2) the conduct of tests, demonstrations, exercises, and
focused experiments for compelling challenges and opportunities;
(3) overseeing the implementation of section 2446c of title
10, United States Code;
(4) sponsoring and overseeing research on and development of
(including tests and demonstrations) automated tools for
composing systems of systems on demand;
(5) developing mission-based inputs for the requirements
process, assessment of concepts, prototypes, design options,
budgeting and resource allocation, and program and portfolio
management; and
(6) coordinating with commanders of the combatant commands
on the development of concepts of operation and operational
plans.

(e) Scope.--The mission integration management activities for a
mission area under this subsection shall extend to the supporting
elements for the mission area, such as communications, command and
control, electronic warfare, and intelligence.
(f) Funding.--There is authorized to be made available annually such
amounts as the Secretary of Defense determines appropriate from the
Rapid Prototyping Fund established under section 804(d) of the National
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10
U.S.C. 2302 note) for mission integration management activities listed
in subsection (d).
(g) Strategy.--The Secretary of Defense shall submit to the
congressional defense committees, at the same time as the budget for the
Department of Defense for fiscal year 2018 is submitted to Congress
pursuant to section 1105 of title 31, United States Code, a strategy for
mission integration management, including a resourcing strategy for
mission integration managers to carry out the responsibilities specified
in this section.

Subtitle E--Provisions Relating to Acquisition Workforce

SEC. 861. PROJECT MANAGEMENT.

(a) Deputy Director for Management.--
(1) Additional functions.--Section 503 of title 31, United
States Code, is amended by adding at the end the following:

``(c) Program and Project Management.--
``(1) Requirement.--Subject to the direction and approval of
the Director, the Deputy Director for Management or a designee
shall--
``(A) adopt governmentwide standards, policies, and
guidelines for program and project management for
executive agencies;
``(B) oversee implementation of program and project
management for the standards, policies, and guidelines
established under subparagraph (A);

[[Page 2299]]

``(C) chair the Program Management Policy Council
established under section 1126(b);
``(D) establish standards and policies for executive
agencies, consistent with widely accepted standards for
program and project management planning and delivery;
``(E) engage with the private sector to identify
best practices in program and project management that
would improve Federal program and project management;
``(F) conduct portfolio reviews to address programs
identified as high risk by the Government Accountability
Office;
``(G) not less than annually, conduct portfolio
reviews of agency programs in coordination with Project
Management Improvement Officers designated under section
1126(a)(1) to assess the quality and effectiveness of
program management; and
``(H) establish a 5-year strategic plan for program
and project management.
``(2) Application to department of defense.--Paragraph (1)
shall not apply to the Department of Defense to the extent that
the provisions of that paragraph are substantially similar to or
duplicative of--
``(A) the provisions of chapter 87 of title 10; or
``(B) policy, guidance, or instruction of the
Department related to program management.''.
(2) <>  Deadline for standards,
policies, and guidelines.--Not later than 1 year after the date
of enactment of this Act, the Deputy Director for Management of
the Office of Management and Budget shall issue the standards,
policies, and guidelines required under section 503(c) of title
31, United States Code, as added by paragraph (1).
(3) <>  Regulations.--Not later than
90 days after the date on which the standards, policies, and
guidelines are issued under paragraph (2), the Deputy Director
for Management of the Office of Management and Budget, in
consultation with the Program Management Policy Council
established under section 1126(b) of title 31, United States
Code, as added by subsection (b)(1), and the Director of the
Office of Management and Budget, shall issue any regulations as
are necessary to implement the requirements of section 503(c) of
title 31, United States Code, as added by paragraph (1).

(b) Program Management Improvement Officers and Program Management
Policy Council.--
(1) Amendment.--Chapter 11 of title 31, United States Code,
is amended by adding at the end the following:
``Sec. 1126. Program Management Improvement Officers and Program
Management Policy Council

``(a) Program Management Improvement Officers.--
``(1) Designation.--The head of each agency described in
section 901(b) shall designate a senior executive of the agency
as the Program Management Improvement Officer of the agency.
``(2) Functions.--The Program Management Improvement Officer
of an agency designated under paragraph (1) shall--
``(A) implement program management policies
established by the agency under section 503(c); and

[[Page 2300]]

``(B) develop a strategy for enhancing the role of
program managers within the agency that includes the
following:
``(i) Enhanced training and educational
opportunities for program managers that shall
include--
``(I) training in the relevant
competencies encompassed with program
and project manager within the private
sector for program managers; and
``(II) training that emphasizes cost
containment for large projects and
programs.
``(ii) Mentoring of current and future program
managers by experienced senior executives and
program managers within the agency.
``(iii) Improved career paths and career
opportunities for program managers.
``(iv) A plan to encourage the recruitment and
retention of highly qualified individuals to serve
as program managers.
``(v) Improved means of collecting and
disseminating best practices and lessons learned
to enhance program management across the agency.
``(vi) Common templates and tools to support
improved data gathering and analysis for program
management and oversight purposes.
``(3) Application to department of defense.--This subsection
shall not apply to the Department of Defense to the extent that
the provisions of this subsection are substantially similar to
or duplicative of the provisions of chapter 87 of title 10. For
purposes of paragraph (1), the Under Secretary of Defense for
Acquisition, Technology, and Logistics (or a designee of the
Under Secretary) shall be considered the Program Management
Improvement Officer.

``(b) Program Management Policy Council.--
``(1) Establishment.--There is established in the Office of
Management and Budget a council to be known as the `Program
Management Policy Council' (in this subsection referred to as
the `Council').
``(2) Purpose and functions.--The Council shall act as the
principal interagency forum for improving agency practices
related to program and project management. The Council shall--
``(A) advise and assist the Deputy Director for
Management of the Office of Management and Budget;
``(B) review programs identified as high risk by the
Government Accountability Office and make
recommendations for actions to be taken by the Deputy
Director for Management of the Office of Management and
Budget or a designee;
``(C) discuss topics of importance to the workforce,
including--
``(i) career development and workforce
development needs;
``(ii) policy to support continuous
improvement in program and project management; and
``(iii) major challenges across agencies in
managing programs;

[[Page 2301]]

``(D) advise on the development and applicability of
standards governmentwide for program management
transparency; and
``(E) review the information published on the
website of the Office of Management and Budget pursuant
to section 1122.
``(3) Membership.--
``(A) Composition.--The Council shall be composed of
the following members:
``(i) Five members from the Office of
Management and Budget as follows:
``(I) The Deputy Director for
Management.
``(II) The Administrator of the
Office of Electronic Government.
``(III) The Administrator of Federal
Procurement Policy.
``(IV) The Controller of the Office
of Federal Financial Management.
``(V) The Director of the Office of
Performance and Personnel Management.
``(ii) The Program Management Improvement
Officer from each agency described in section
901(b).
``(iii) Any other full-time or permanent part-
time officer or employee of the Federal Government
or member of the Armed Forces designated by the
Chairperson.
``(B) Chairperson and vice chairperson.--
``(i) In general.--The Deputy Director for
Management of the Office of Management and Budget
shall be the Chairperson of the Council. A Vice
Chairperson shall be elected by the members and
shall serve a term of not more than 1 year.
``(ii) Duties.--The Chairperson shall preside
at the meetings of the Council, determine the
agenda of the Council, direct the work of the
Council, and establish and direct subgroups of the
Council as appropriate.
``(4) Meetings.--The Council shall meet not less than twice
per fiscal year and may meet at the call of the Chairperson or a
majority of the members of the Council.
``(5) Support.--The head of each agency with a Project
Management Improvement Officer serving on the Council shall
provide administrative support to the Council, as appropriate,
at the request of the Chairperson.''.
(2) Report required.--Not later than 1 year after the date
of the enactment of this Act, the Director of the Office of
Management and Budget, in consultation with each Program
Management Improvement Officer designated under section
1126(a)(1) of title 31, United States Code, shall submit to
Congress a report containing the strategy developed under
section 1126(a)(2)(B) of such title, as added by paragraph (1).

(c) Program and Project Management Personnel Standards.--
(1) <>  Definition.--In this
subsection, the term ``agency'' means each agency described in
section 901(b) of title 31, United States Code, other than the
Department of Defense.
(2) Regulations required.--Not later than 180 days after the
date on which the standards, policies, and guidelines are

[[Page 2302]]

issued under section 503(c) of title 31, United States Code, as
added by subsection (a)(1), the Director of the Office of
Personnel Management, in consultation with the Director of the
Office of Management and Budget, shall issue regulations that--
(A) identify key skills and competencies needed for
a program and project manager in an agency;
(B) establish a new job series, or update and
improve an existing job series, for program and project
management within an agency; and
(C) establish a new career path for program and
project managers within an agency.

(d) GAO Report on Effectiveness of Policies on Program and Project
Management.--Not later than 3 years after the date of enactment of this
Act, the Comptroller General of the United States shall issue, in
conjunction with the high risk list of the Government Accountability
Office, a report examining the effectiveness of the following on
improving Federal program and project management:
(1) The standards, policies, and guidelines for program and
project management issued under section 503(c) of title 31,
United States Code, as added by subsection (a)(1).
(2) The 5-year strategic plan established under section
503(c)(1)(H) of title 31, United States Code, as added by
subsection (a)(1).
(3) Program Management Improvement Officers designated under
section 1126(a)(1) of title 31, United States Code, as added by
subsection (b)(1).
(4) The Program Management Policy Council established under
section 1126(b)(1) of title 31, United States Code, as added by
subsection (b)(1).
SEC. 862. AUTHORITY TO WAIVE TENURE REQUIREMENT FOR PROGRAM
MANAGERS FOR PROGRAM DEFINITION AND
PROGRAM EXECUTION PERIODS.

(a) <>  Program Definition Period.--Section
826(e) of the National Defense Authorization Act for Fiscal Year 2016
(Public Law 114-92) is amended by striking ``The Secretary may waive''
and inserting ``The service acquisition executive, in the case of a
major defense acquisition program of a military department, or the Under
Secretary of Defense for Acquisition, Technology, and Logistics, in the
case of a Defense-wide or Defense Agency major defense acquisition
program, may waive''.

(b) <>  Program Execution Period.--Section
827(e) of the National Defense Authorization Act for Fiscal Year 2016
(Public Law 114-92) is amended by striking ``The immediate supervisor of
a program manager for a major defense acquisition program may waive''
and inserting ``The service acquisition executive, in the case of a
major defense acquisition program of a military department, or the Under
Secretary of Defense for Acquisition, Technology, and Logistics, in the
case of a Defense-wide or Defense Agency major defense acquisition
program, may waive''.
SEC. 863. PURPOSES FOR WHICH THE DEPARTMENT OF DEFENSE ACQUISITION
WORKFORCE DEVELOPMENT FUND MAY BE USED;
ADVISORY PANEL AMENDMENTS.

(a) In General.--Section 1705 of title 10, United States Code, is
amended--

[[Page 2303]]

(1) in subsection (e)--
(A) in paragraph (1), by inserting ``and to develop
acquisition tools and methodologies, and undertake
research and development activities, leading to
acquisition policies and practices that will improve the
efficiency and effectiveness of defense acquisition
efforts'' after ``workforce of the Department''; and
(B) in paragraph (4), by striking ``other than for
the purpose of'' and all that follows through the period
at the end and inserting ``other than for the purposes
of--
``(A) providing advanced training to Department of
Defense employees;
``(B) developing acquisition tools and methodologies
and performing research on acquisition policies and best
practices that will improve the efficiency and
effectiveness of defense acquisition efforts; and
``(C) supporting human capital and talent management
of the acquisition workforce, including benchmarking
studies, assessments, and requirements planning.''; and
(2) in subsection (f), by striking ``Each report shall
include'' and all that follows through the period at the end of
paragraph (5).

(b) Technical Amendments.--Such section is further amended--
(1) in subsection (d)(2)(C), by striking ``in each'' and
inserting ``in such'';
(2) in subsection (f)--
(A) by striking ``Not later than 120 days after the
end of each fiscal year'' and inserting ``Not later than
February 1 each year''; and
(B) by striking ``such fiscal year'' the first place
it appears and inserting ``the preceding fiscal year'';
and
(3) in subsection (g)(1)--
(A) by striking ``of of'' and inserting ``of''; and
(B) by striking ``, as defined in subsection (h),''.

(c) Limitation on Availability of Funds for Certain Purposes.--Of
the amounts authorized to be appropriated by this Act or otherwise made
available for fiscal year 2017, not more than $35,000,000 may be
obligated or expended for the purposes set forth in subparagraphs (B)
and (C) of section 1705(e)(4) of title 10, United States Code, as added
by subsection (a).
(d) Amendments to Advisory Panel on Streamlining and Codifying
Acquisition Regulations.--Section 809 of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat.
889) is amended--
(1) by amending subsection (a) to read as follows:

``(a) Establishment.--The Secretary of Defense shall establish an
independent advisory panel on streamlining acquisition regulations. The
panel shall be supported by the Defense Acquisition University and the
National Defense University, including administrative support.''; and
(2) in subsection (d)--
(A) in paragraph (1), by striking ``and analysis''
and inserting ``, analysis, and logistics support''; and
(B) by adding at the end the following new
paragraph:
``(3) Authorities.--The panel shall have the authorities
provided in section 3161 of title 5, United States Code.''.

[[Page 2304]]

SEC. 864. DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT
FUND DETERMINATION ADJUSTMENT.

(a) Credit to Rapid Prototyping Fund.--Notwithstanding section
1705(d)(2)(B) of title 10, United States Code, of the funds credited to
the Department of Defense Acquisition Workforce Development Fund in
fiscal year 2017 pursuant to such section, $225,000,000 shall be
transferred to the Rapid Prototyping Fund established under section
804(d) of the National Defense Authorization Act for Fiscal Year 2016
(Public Law 114-92; 10 U.S.C. 2302 note). Of the $225,000,000 so
transferred, $75,000,000 shall be credited to each of the military
department-specific funds established under section 804(d)(2) of such
Act (as added by section 897 of this Act).
(b) Technical and Conforming Amendments.--Section 804(d)(1) of the
National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-
92; 10 U.S.C. 2302 note) is amended--
(1) in the first sentence, by inserting a comma after ``may
be available'';
(2) at the end of the first sentence, by inserting before
the period the following: ``and other purposes specified in
law''; and
(3) in the last sentence, by striking ``shall consist of''
and all that follows through ``this Act.'' and inserting the
following: ``shall consist of--
``(i) amounts appropriated to the Fund;
``(ii) amounts credited to the Fund pursuant
to section 828 of this Act; and
``(iii) any other amounts appropriated to,
credited to, or transferred to the Fund.''.
SEC. 865. LIMITATIONS ON FUNDS USED FOR STAFF AUGMENTATION
CONTRACTS AT MANAGEMENT HEADQUARTERS OF
THE DEPARTMENT OF DEFENSE AND THE MILITARY
DEPARTMENTS.

(a) Limitations.--
(1) For fiscal years 2017 and 2018.--The total amount
obligated by the Department of Defense for fiscal year 2017 or
2018 for contract services for staff augmentation contracts at
management headquarters of the Department and the military
departments may not exceed an amount equal to the aggregate
amount expended by the Department for contract services for
staff augmentation contracts at management headquarters of the
Department and the military departments in fiscal year 2016
adjusted for net transfers from funding for overseas contingency
operations (in this subsection referred to as the ``fiscal year
2016 staff augmentation contracts funding amount'').
(2) For fiscal years 2018 through 2022.--The total amount
obligated by the Department for any fiscal year after fiscal
year 2018 and before fiscal year 2023 for contract services for
staff augmentation contracts at management headquarters of the
Department and the military departments may not exceed an amount
equal to 75 percent of the fiscal year 2016 staff augmentation
contracts funding amount.

(b) Definitions.--In this section:
(1) The term ``contract services'' has the meaning given
that term in section 235 of title 10, United States Code.

[[Page 2305]]

(2) The term ``staff augmentation contracts'' means services
contracts for personnel who are physically present in a
Government work space on a full-time or permanent part-time
basis, for the purpose of advising on, providing support to, or
assisting a Government agency in the performance of the agency's
missions, including authorized personal services contracts (as
that term is defined in section 2330a(g)(5) of title 10, United
States Code).
SEC. 866. SENIOR MILITARY ACQUISITION ADVISORS IN THE DEFENSE
ACQUISITION CORPS.

(a) Positions.--
(1) In general.--Subchapter II of chapter 87 of title 10,
United States Code, is amended by adding at the end the
following new section:
``Sec. 1725. <>  Senior Military Acquisition
Advisors

``(a) Position.--
``(1) In general.--The Secretary of Defense may establish in
the Defense Acquisition Corps a position to be known as `Senior
Military Acquisition Advisor'.
``(2) Appointment.--A Senior Military Acquisition Advisor
shall be appointed by the President, by and with the advice and
consent of the Senate.
``(3) Scope of position.--An officer who is appointed as a
Senior Military Acquisition Advisor--
``(A) shall serve as an advisor to, and provide
senior level acquisition expertise to, the service
acquisition executive of that officer's military
department in accordance with this section; and
``(B) shall be assigned as an adjunct professor at
the Defense Acquisition University.

``(b) Continuation on Active Duty.--An officer who is appointed as a
Senior Military Acquisition Advisor may continue on active duty while
serving in such position without regard to any mandatory retirement date
that would otherwise be applicable to that officer by reason of years of
service or age. An officer who is continued on active duty pursuant to
this section is not eligible for consideration for selection for
promotion.
``(c) Retired Grade.--Upon retirement, an officer who is a Senior
Military Acquisition Advisor may, in the discretion of the President, be
retired in the grade of brigadier general or rear admiral (lower half)
if--
``(1) the officer has served as a Senior Military
Acquisition Advisor for a period of not less than three years;
and
``(2) the officer's service as a Senior Military Acquisition
Advisor has been distinguished.

``(d) Selection and Tenure.--
``(1) In general.--Selection of an officer for
recommendation for appointment as a Senior Military Acquisition
Advisor shall be made competitively, and shall be based upon
demonstrated experience and expertise in acquisition.
``(2) Officers eligible.--Officers shall be selected for
recommendation for appointment as Senior Military Acquisition
Advisors from among officers of the Defense Acquisition Corps
who are serving in the grade of colonel or, in the case of the
Navy, captain, and who have at least 12 years of acquisition

[[Page 2306]]

experience. An officer selected for recommendation for
appointment as a Senior Military Acquisition Advisor shall have
at least 30 years of active commissioned service at the time of
appointment.
``(3) Term.--The appointment of an officer as a Senior
Military Acquisition Advisor shall be for a term of not longer
than five years.

``(e) Limitation.--
``(1) Limitation on number and distribution.--There may not
be more than 15 Senior Military Acquisition Advisors at any
time, of whom--
``(A) not more than five may be officers of the
Army;
``(B) not more than five may be officers of the Navy
and Marine Corps; and
``(C) not more than five may be officers of the Air
Force.
``(2) Number in each military department.--Subject to
paragraph (1), the number of Senior Military Acquisition
Advisors for each military department shall be as required and
identified by the service acquisition executive of such military
department and approved by the Under Secretary of Defense for
Acquisition, Technology, and Logistics.

``(f) Advice to Service Acquisition Executive.--An officer who is a
Senior Military Acquisition Advisor shall have as the officer's primary
duty providing strategic, technical, and programmatic advice to the
service acquisition executive of the officer's military department on
matters pertaining to the Defense Acquisition System, including matters
pertaining to procurement, research and development, advanced
technology, test and evaluation, production, program management, systems
engineering, and lifecycle logistics.''.
(2) <>  Clerical amendment.--The
table of sections at the beginning of subchapter II of chapter
87 of such title is amended by adding at the end the following
new item:

``1725. Senior Military Acquisition Advisors.''.

(b) Exclusion From Officer Grade-strength Limitations.--Section
523(b) of such title is amended by adding at the end the following new
paragraph:
``(9) Officers who are Senior Military Acquisition Advisors
under section 1725 of this title, but not to exceed 15.''.
SEC. 867. AUTHORITY OF THE SECRETARY OF DEFENSE UNDER THE
ACQUISITION DEMONSTRATION PROJECT.

(a) Amendment.--Section 1762(b) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
``(4) The Secretary of Defense shall exercise the
authorities granted to the Office of Personnel Management under
section 4703 of title 5 for purposes of the demonstration
project authorized under this section.''.

(b) <>  Effective Date.--Paragraph (4) of
section 1762(b) of title 10, United States Code, as added by subsection
(a), shall take effect on the first day of the first month beginning 60
days after the date of the enactment of this Act.

[[Page 2307]]

Subtitle F--Provisions Relating to Commercial Items

SEC. 871. MARKET RESEARCH FOR DETERMINATION OF PRICE
REASONABLENESS IN ACQUISITION OF
COMMERCIAL ITEMS.

Section 2377 of title 10, United States Code, is amended--
(1) by redesignating subsection (d) as subsection (e), and
in that subsection by striking ``subsection (c)'' and inserting
``subsections (c) and (d)''; and
(2) by inserting after subsection (c) the following new
subsection (d):

``(d) Market Research for Price Analysis.--The Secretary of Defense
shall ensure that procurement officials in the Department of Defense
conduct or obtain market research to support the determination of the
reasonableness of price for commercial items contained in any bid or
offer submitted in response to an agency solicitation. To the extent
necessary to support such market research, the procurement official for
the solicitation--
``(1) in the case of items acquired under section 2379 of
this title, shall use information submitted under subsection (d)
of that section; and
``(2) in the case of other items, may require the offeror to
submit relevant information.''.
SEC. 872. VALUE ANALYSIS FOR THE DETERMINATION OF PRICE
REASONABLENESS.

Subsection 2379(d) of title 10, United States Code, is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph (2):

``(2) An offeror may submit information or analysis relating to the
value of a commercial item to aid in the determination of the
reasonableness of the price of such item. A contracting officer may
consider such information or analysis in addition to the information
submitted pursuant to paragraphs (1)(A) and (1)(B).''.
SEC. 873. CLARIFICATION OF REQUIREMENTS RELATING TO COMMERCIAL
ITEM DETERMINATIONS.

Paragraphs (1) and (2) of section 2380 of title 10, United States
Code, are amended to read as follows:
``(1) establish and maintain a centralized capability with
necessary expertise and resources to provide assistance to the
military departments and Defense Agencies in making commercial
item determinations, conducting market research, and performing
analysis of price reasonableness for the purposes of
procurements by the Department of Defense; and
``(2) provide to officials of the Department of Defense
access to previous Department of Defense commercial item
determinations, market research, and analysis used to determine
the reasonableness of price for the purposes of procurements by
the Department of Defense.''.

[[Page 2308]]

SEC. 874. INAPPLICABILITY OF CERTAIN LAWS AND REGULATIONS TO THE
ACQUISITION OF COMMERCIAL ITEMS AND
COMMERCIALLY AVAILABLE OFF-THE-SHELF
ITEMS.

(a) Amendment to Title 10, United States Code.--Section 2375 of
title 10, United States Code, is amended to read as follows:
``Sec. 2375. Relationship of commercial item provisions to other
provisions of law

``(a) Applicability of Government-wide Statutes.--(1) No contract
for the procurement of a commercial item entered into by the head of an
agency shall be subject to any law properly listed in the Federal
Acquisition Regulation pursuant to section 1906(b) of title 41.
``(2) No subcontract under a contract for the procurement of a
commercial item entered into by the head of an agency shall be subject
to any law properly listed in the Federal Acquisition Regulation
pursuant to section 1906(c) of title 41.
``(3) No contract for the procurement of a commercially available
off-the-shelf item entered into by the head of an agency shall be
subject to any law properly listed in the Federal Acquisition Regulation
pursuant to section 1907 of title 41.
``(b) Applicability of Defense-unique Statutes to Contracts for
Commercial Items.--(1) The Defense Federal Acquisition Regulation
Supplement shall include a list of defense-unique provisions of law and
of contract clause requirements based on government-wide acquisition
regulations, policies, or executive orders not expressly authorized in
law that are inapplicable to contracts for the procurement of commercial
items. A provision of law or contract clause requirement properly
included on the list pursuant to paragraph (2) does not apply to
purchases of commercial items by the Department of Defense. This section
does not render a provision of law or contract clause requirement not
included on the list inapplicable to contracts for the procurement of
commercial items.
``(2) A provision of law or contract clause requirement described in
subsection (e) that is enacted after January 1, 2015, shall be included
on the list of inapplicable provisions of law and contract clause
requirements required by paragraph (1) unless the Under Secretary of
Defense for Acquisition, Technology, and Logistics makes a written
determination that it would not be in the best interest of the
Department of Defense to exempt contracts for the procurement of
commercial items from the applicability of the provision or contract
clause requirement.
``(c) Applicability of Defense-unique Statutes to Subcontracts for
Commercial Items.--(1) The Defense Federal Acquisition Regulation
Supplement shall include a list of provisions of law and of contract
clause requirements based on government-wide acquisition regulations,
policies, or executive orders not expressly authorized in law that are
inapplicable to subcontracts under a Department of Defense contract or
subcontract for the procurement of commercial items. A provision of law
or contract clause requirement properly included on the list pursuant to
paragraph (2) does not apply to those subcontracts. This section does
not render a provision of law or contract clause requirement not
included on the list inapplicable to subcontracts under a contract for
the procurement of commercial items.

[[Page 2309]]

``(2) A provision of law or contract clause requirement described in
subsection (e) shall be included on the list of inapplicable provisions
of law and contract clause requirements required by paragraph (1) unless
the Under Secretary of Defense for Acquisition, Technology, and
Logistics makes a written determination that it would not be in the best
interest of the Department of Defense to exempt subcontracts under a
contract for the procurement of commercial items from the applicability
of the provision or contract clause requirement.
``(3) In this subsection, the term `subcontract' includes a transfer
of commercial items between divisions, subsidiaries, or affiliates of a
contractor or subcontractor. The term does not include agreements
entered into by a contractor for the supply of commodities that are
intended for use in the performance of multiple contracts with the
Department of Defense and other parties and are not identifiable to any
particular contract.
``(4) This subsection does not authorize the waiver of the
applicability of any provision of law or contract clause requirement
with respect to any first-tier subcontract under a contract with a prime
contractor reselling or distributing commercial items of another
contractor without adding value.
``(d) Applicability of Defense-unique Statutes to Contracts for
Commercially Available, Off-the-shelf Items.--(1) The Defense Federal
Acquisition Regulation Supplement shall include a list of provisions of
law and of contract clause requirements based on government-wide
acquisition regulations, policies, or executive orders not expressly
authorized in law that are inapplicable to contracts for the procurement
of commercially available off-the-shelf items. A provision of law or
contract clause requirement properly included on the list pursuant to
paragraph (2) does not apply to Department of Defense contracts for the
procurement of commercially available off-the-shelf items. This section
does not render a provision of law or contract clause requirement not
included on the list inapplicable to contracts for the procurement of
commercially available off-the-shelf items.
``(2) A provision of law or contract clause requirement described in
subsection (e) shall be included on the list of inapplicable provisions
of law and contract clause requirements required by paragraph (1) unless
the Under Secretary of Defense for Acquisition, Technology, and
Logistics makes a written determination that it would not be in the best
interest of the Department of Defense to exempt contracts for the
procurement of commercially available off-the-shelf items from the
applicability of the provision or contract clause requirement.
``(e) Covered Provision of Law or Contract Clause Requirement.--A
provision of law or contract clause requirement referred to in
subsections (b)(2), (c)(2), and (d)(2) is a provision of law or contract
clause requirement that the Under Secretary of Defense for Acquisition,
Technology, and Logistics determines sets forth policies, procedures,
requirements, or restrictions for the procurement of property or
services by the Federal Government, except for a provision of law or
contract clause requirement that--
``(1) provides for criminal or civil penalties;
``(2) requires that certain articles be bought from American
sources pursuant to section 2533a of this title, or requires
that strategic materials critical to national security be bought

[[Page 2310]]

from American sources pursuant to section 2533b of this title;
or
``(3) specifically refers to this section and provides that,
notwithstanding this section, it shall be applicable to
contracts for the procurement of commercial items.''.

(b) Changes to Defense Federal Acquisition Regulation Supplement.--
(1) <>  In general.--To the maximum
extent practicable, the Under Secretary of Defense for
Acquisition, Technology, and Logistics shall ensure that--
(A) the Defense Federal Acquisition Regulation
Supplement does not require the inclusion of contract
clauses in contracts for the procurement of commercial
items or contracts for the procurement of commercially
available off-the-shelf items, unless such clauses are--
(i) required to implement provisions of law or
executive orders applicable to such contracts; or
(ii) determined to be consistent with standard
commercial practice; and
(B) the flow-down of contract clauses to
subcontracts under contracts for the procurement of
commercial items or commercially available off-the-shelf
items is prohibited unless such flow-down is required to
implement provisions of law or executive orders
applicable to such subcontracts.
(2) Subcontracts.--In this subsection, the term
``subcontract'' includes a transfer of commercial items between
divisions, subsidiaries, or affiliates of a contractor or
subcontractor. The term does not include agreements entered into
by a contractor for the supply of commodities that are intended
for use in the performance of multiple contracts with the
Department of Defense and other parties and are not identifiable
to any particular contract.
SEC. 875. <>  USE OF COMMERCIAL OR NON-
GOVERNMENT STANDARDS IN LIEU OF MILITARY
SPECIFICATIONS AND STANDARDS.

(a) In General.--The Secretary of Defense shall ensure that the
Department of Defense uses commercial or non-Government specifications
and standards in lieu of military specifications and standards,
including for procuring new systems, major modifications, upgrades to
current systems, non-developmental and commercial items, and programs in
all acquisition categories, unless no practical alternative exists to
meet user needs. If it is not practicable to use a commercial or non-
Government standard, a Government-unique specification may be used.
(b) Limited Use of Military Specifications.--
(1) In general.--Military specifications shall be used in
procurements only to define an exact design solution when there
is no acceptable commercial or non-Government standard or when
the use of a commercial or non-Government standard is not cost
effective.
(2) Waiver.--A waiver for the use of military specifications
in accordance with paragraph (1) shall be approved by either the
appropriate milestone decision authority, the appropriate
service acquisition executive, or the Under Secretary of Defense
for Acquisition, Technology, and Logistics.

(c) Revision to DFARS.--Not later than 180 days after the date of
the enactment of this Act, the Under Secretary of Defense

[[Page 2311]]

for Acquisition, Technology, and Logistics shall revise the Defense
Federal Acquisition Regulation Supplement to encourage contractors to
propose commercial or non-Government standards and industry-wide
practices that meet the intent of the military specifications and
standards.
(d) Development of Non-government Standards.--The Under Secretary
for Acquisition, Technology, and Logistics shall form partnerships with
appropriate industry associations to develop commercial or non-
Government standards for replacement of military specifications and
standards where practicable.
(e) Education, Training, and Guidance.--The Under Secretary of
Defense for Acquisition, Technology, and Logistics shall ensure that
training, education, and guidance programs throughout the Department are
revised to incorporate specifications and standards reform.
(f) Licenses.--The Under Secretary of Defense for Acquisition,
Technology, and Logistics shall negotiate licenses for standards to be
used across the Department of Defense and shall maintain an inventory of
such licenses that is accessible to other Department of Defense
organizations.
SEC. 876. <>  PREFERENCE FOR COMMERCIAL
SERVICES.

Not later than 90 days after the date of the enactment of this Act,
the Secretary of Defense shall revise the guidance issued pursuant to
section 855 of the National Defense Authorization Act for Fiscal Year
2016 (Public Law 114-92; 10 U.S.C. 2377 note) to provide that--
(1) the head of an agency may not enter into a contract in
excess of $10,000,000 for facilities-related services,
knowledge-based services (except engineering services),
construction services, medical services, or transportation
services that are not commercial services unless the service
acquisition executive of the military department concerned, the
head of the Defense Agency concerned, the commander of the
combatant command concerned, or the Under Secretary of Defense
for Acquisition, Technology, and Logistics (as applicable)
determines in writing that no commercial services are suitable
to meet the agency's needs as provided in section 2377(c)(2) of
title 10, United States Code; and
(2) the head of an agency may not enter into a contract in
an amount above the simplified acquisition threshold and below
$10,000,000 for facilities-related services, knowledge-based
services (except engineering services), construction services,
medical services, or transportation services that are not
commercial services unless the contracting officer determines in
writing that no commercial services are suitable to meet the
agency's needs as provided in section 2377(c)(2) of such title.
SEC. 877. TREATMENT OF COMMINGLED ITEMS PURCHASED BY CONTRACTORS
AS COMMERCIAL ITEMS.

(a) In General.--Chapter 140 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 2380B. <>  Treatment of commingled
items purchased by contractors as commercial
items

``Notwithstanding 2376(1) of this title, items valued at less than
$10,000 that are purchased by a contractor for use in the

[[Page 2312]]

performance of multiple contracts with the Department of Defense and
other parties and are not identifiable to any particular contract shall
be treated as a commercial item for purposed of this chapter.''.
(b) <>  Clerical Amendment.--The table of
sections for such chapter is amended by inserting after the item
relating to section 2380A the following new item:

``2380B. Treatment of items purchased prior to release of prime contract
requests for proposals as commercial items.''.

SEC. 878. TREATMENT OF SERVICES PROVIDED BY NONTRADITIONAL
CONTRACTORS AS COMMERCIAL ITEMS.

(a) In General.--Section 2380A of title 10, United States Code, is
amended--
(1) by striking ``Notwithstanding'' and inserting the
following:

``(a) Goods and Services Provided by Nontraditional Defense
Contractors.--Notwithstanding''; and
(2) by adding at the end the following new subsection:

``(b) Services Provided by Certain Nontraditional Contractors.--
Notwithstanding section 2376(1) of this title, services provided by a
business unit that is a nontraditional defense contractor (as that term
is defined in section 2302(9) of this title) shall be treated as
commercial items for purposes of this chapter, to the extent that such
services use the same pool of employees as used for commercial customers
and are priced using methodology similar to methodology used for
commercial pricing.''.
(b) Conforming Amendments.--
(1) Section heading.--Section 2380A of title 10, United
States Code, as amended by subsection (a), is further amended by
striking the section heading and inserting the following:
``Sec. 2380a. Treatment of certain items as commercial items''.
(2) <>  Table of sections.--The
table of sections at the beginning of chapter 140 of title 10,
United States Code, is amended by striking the item relating to
section 2380A and inserting the following new item:

``2380a. Treatment of certain items as commercial items.''.

SEC. 879. <>  DEFENSE PILOT PROGRAM FOR
AUTHORITY TO ACQUIRE INNOVATIVE COMMERCIAL
ITEMS, TECHNOLOGIES, AND SERVICES USING
GENERAL SOLICITATION COMPETITIVE
PROCEDURES.

(a) Authority.--The Secretary of Defense and the Secretaries of the
military departments may carry out a pilot program, to be known as the
``defense commercial solutions opening pilot program'', under which the
Secretary may acquire innovative commercial items, technologies, and
services through a competitive selection of proposals resulting from a
general solicitation and the peer review of such proposals.
(b) Treatment as Competitive Procedures.--Use of general
solicitation competitive procedures for the pilot program under
subsection (a) shall be considered to be use of competitive procedures
for purposes of chapter 137 of title 10, United States Code.
(c) Limitations.--
(1) In general.--The Secretary may not enter into a contract
or agreement under the pilot program for an amount in excess of
$100,000,000 without a written determination from

[[Page 2313]]

the Under Secretary for Acquisition, Logistics, and Technology
or the relevant service acquisition executive of the efficacy of
the effort to meet mission needs of the Department of Defense or
the relevant military department.
(2) Fixed-price requirement.--Contracts or agreements
entered into under the program shall be fixed-price, including
fixed-price incentive fee contracts.
(3) Treatment as commercial items.--Notwithstanding section
2376(1) of title 10, United States Code, items, technologies,
and services acquired under the pilot program shall be treated
as commercial items.

(d) Guidance.--Not later than six months after the date of the
enactment of this Act, the Secretary shall issue guidance for the
implementation of the pilot program under this section within the
Department of Defense. Such guidance shall be issued in consultation
with the Director of the Office of Management and Budget and shall be
posted for access by the public.
(e) Congressional Notification Required.--
(1) In general.--Not later than 45 days after the award of a
contract for an amount exceeding $100,000,000 using the
authority in subsection (a), the Secretary of Defense shall
notify the congressional defense committees of such award.
(2) Elements.--Notice of an award under paragraph (1) shall
include the following:
(A) Description of the innovative commercial item,
technology, or service acquired.
(B) Description of the requirement, capability gap,
or potential technological advancement with respect to
which the innovative commercial item, technology, or
service acquired provides a solution or a potential new
capability.
(C) Amount of the contract awarded.
(D) Identification of contractor awarded the
contract.

(f) Definition.--In this section, the term ``innovative'' means--
(1) any technology, process, or method, including research
and development, that is new as of the date of submission of a
proposal; or
(2) any application that is new as of the date of submission
of a proposal of a technology, process, or method existing as of
such date.

(g) Sunset.--The authority to enter into contracts under the pilot
program shall expire on September 30, 2022.
SEC. 880. <>  PILOT PROGRAMS FOR
AUTHORITY TO ACQUIRE INNOVATIVE COMMERCIAL
ITEMS USING GENERAL SOLICITATION
COMPETITIVE PROCEDURES.

(a) Authority.--
(1) In general.--The head of an agency may carry out a pilot
program, to be known as a ``commercial solutions opening pilot
program'', under which innovative commercial items may be
acquired through a competitive selection of proposals resulting
from a general solicitation and the peer review of such
proposals.
(2) Head of an agency.--In this section, the term ``head of
an agency'' means the following:
(A) The Secretary of Homeland Security.
(B) The Administrator of General Services.

[[Page 2314]]

(3) Applicability of section.--This section applies to the
following agencies:
(A) The Department of Homeland Security.
(B) The General Services Administration.

(b) Treatment as Competitive Procedures.--Use of general
solicitation competitive procedures for the pilot program under
subsection (a) shall be considered, in the case of the Department of
Homeland Security and the General Services Administration, to be use of
competitive procedures for purposes of division C of title 41, United
States Code (as defined in section 152 of such title).
(c) Limitation.--The head of an agency may not enter into a contract
under the pilot program for an amount in excess of $10,000,000.
(d) Guidance.--The head of an agency shall issue guidance for the
implementation of the pilot program under this section within that
agency. Such guidance shall be issued in consultation with the Office of
Management and Budget and shall be posted for access by the public.
(e) Report Required.--
(1) In general.--Not later than three years after the date
of the enactment of this Act, the head of an agency shall submit
to the congressional committees specified in paragraph (3) a
report on the activities the agency carried out under the pilot
program.
(2) Elements of report.--Each report under this subsection
shall include the following:
(A) An assessment of the impact of the pilot program
on competition.
(B) A comparison of acquisition timelines for--
(i) procurements made using the pilot program;
and
(ii) procurements made using other competitive
procedures that do not use general solicitations.
(C) A recommendation on whether the authority for
the pilot program should be made permanent.
(3) Specified congressional committees.--The congressional
committees specified in this paragraph are the Committee on
Homeland Security and Governmental Affairs of the Senate and the
Committee on Oversight and Government Reform of the House of
Representatives.

(f) Innovative Defined.--In this section, the term ``innovative''
means--
(1) any new technology, process, or method, including
research and development; or
(2) any new application of an existing technology, process,
or method.

(g) Termination.--The authority to enter into a contract under a
pilot program under this section terminates on September 30, 2022.

[[Page 2315]]

Subtitle G--Industrial Base Matters

SEC. 881. <>  GREATER INTEGRATION OF THE
NATIONAL TECHNOLOGY AND INDUSTRIAL BASE.

(a) Plan Required.--Not later than January 1, 2018, the Secretary of
Defense shall develop a plan to reduce the barriers to the seamless
integration between the persons and organizations that comprise the
national technology and industrial base (as defined in section 2500 of
title 10, United States Code). The plan shall include at a minimum the
following elements:
(1) A description of the various components of the national
technology and industrial base, including government entities,
universities, nonprofit research entities, nontraditional and
commercial item contractors, and private contractors that
conduct commercial and military research, produce commercial
items that could be used by the Department of Defense, and
produce items designated and controlled under section 38 of the
Arms Export Control Act (also known as the ``United States
Munitions List'').
(2) Identification of the barriers to the seamless
integration of the transfer of knowledge, goods, and services
among the persons and organizations of the national technology
and industrial base.
(3) Identification of current authorities that could
contribute to further integration of the persons and
organizations of the national technology and industrial base,
and a plan to maximize the use of those authorities.
(4) Identification of changes in export control rules,
procedures, and laws that would enhance the civil-military
integration policy objectives set forth in section 2501(b) of
title 10, United States Code, for the national technology and
industrial base to increase the access of the Armed Forces to
commercial products, services, and research and create
incentives necessary for nontraditional and commercial item
contractors, universities, and nonprofit research entities to
modify commercial products or services to meet Department of
Defense requirements.
(5) Recommendations for increasing integration of the
national technology and industrial base that supplies defense
articles to the Armed Forces and enhancing allied
interoperability of forces through changes to the text or the
implementation of--
(A) section 126.5 of title 22, Code of Federal
Regulations (relating to exemptions that are applicable
to Canada under the International Traffic in Arms
Regulations);
(B) the Treaty Between the Government of the United
States of America and the Government of Australia
Concerning Defense Trade Cooperation, done at Sydney on
September 5, 2007;
(C) the Treaty Between the Government of the United
States of America and the Government of the United
Kingdom of Great Britain and Northern Ireland Concerning
Defense Trade Cooperation, done at Washington and London
on June 21 and 26, 2007; and
(D) any other agreements among the countries
comprising the national technology and industrial base.

[[Page 2316]]

(b) Amendment to Definition of National Technology and Industrial
Base.--Section 2500(1) of title 10, United States Code, is amended by
inserting ``, the United Kingdom of Great Britain and Northern Ireland,
Australia,'' after ``United States''.
(c) Reporting Requirement.--The Secretary of Defense shall report on
the progress of implementing the plan in subsection (a) in the report
required under section 2504 of title 10, United States Code.
SEC. 882. INTEGRATION OF CIVIL AND MILITARY ROLES IN ATTAINING
NATIONAL TECHNOLOGY AND INDUSTRIAL BASE
OBJECTIVES.

Section 2501(b) of title 10, United States Code, is amended by
striking ``It is the policy of Congress that the United States attain''
and inserting ``The Secretary of Defense shall ensure that the United
States attains''.
SEC. 883. <>  PILOT PROGRAM FOR
DISTRIBUTION SUPPORT AND SERVICES FOR
WEAPON SYSTEMS CONTRACTORS.

(a) Authority.--The Secretary of Defense may carry out a six-year
pilot program under which the Secretary may make available storage and
distribution services support to a contractor in support of the
performance by the contractor of a contract for the production,
modification, maintenance, or repair of a weapon system that is entered
into by the Department of Defense.
(b) Support Contracts.--
(1) In general.--Any storage and distribution services to be
provided under the pilot program under this section to a
contractor in support of the performance of a contract described
in subsection (a) shall be provided under a separate contract
that is entered into by the Director of the Defense Logistics
Agency with that contractor. The requirements of section 2208(h)
of title 10, United States Code, and the regulations prescribed
pursuant to such section shall apply to any such separate
support contract between the Director of the Defense Logistics
Agency and the contractor.
(2) Limitation.--Not more than five support contracts
between the Director and the contractor may be awarded under the
pilot program.

(c) Scope of Support and Services.--The storage and distribution
support services that may be provided under this section in support of
the performance of a contract described in subsection (a) are storage
and distribution of materiel and repair parts necessary for the
performance of that contract.
(d) Regulations.--Before exercising the authority under the pilot
program under this section, the Secretary of Defense shall prescribe in
regulations such requirements, conditions, and restrictions as the
Secretary determines appropriate to ensure that storage and distribution
services are provided under the pilot program only when it is in the
best interests of the United States to do so. The regulations shall
include, at a minimum, the following:
(1) A requirement for the solicitation of offers for a
contract described in subsection (a), for which storage and
distribution services are to be made available under the pilot
program, including--
(A) a statement that the storage and distribution
services are to be made available under the authority of
the pilot program under this section to any contractor
awarded

[[Page 2317]]

the contract, but only on a basis that does not require
acceptance of the support and services; and
(B) a description of the range of the storage and
distribution services that are to be made available to
the contractor.
(2) A requirement for the rates charged a contractor for
storage and distribution services provided to a contractor under
the pilot program to reflect the full cost to the United States
of the resources used in providing the support and services,
including the costs of resources used, but not paid for, by the
Department of Defense.
(3) With respect to a contract described in subsection (a)
that is being performed for a department or agency outside the
Department of Defense, a prohibition, in accordance with
applicable contracting procedures, on the imposition of any
charge on that department or agency for any effort of Department
of Defense personnel or the contractor to correct deficiencies
in the performance of such contract.
(4) A prohibition on the imposition of any charge on a
contractor for any effort of the contractor to correct a
deficiency in the performance of storage and distribution
services provided to the contractor under this section.
(5) A requirement that storage and distribution services
provided under the pilot program may not interfere with the
mission of the Defense Logistics Agency or of any military
department involved with the pilot program.
(6) A requirement that any support contract for storage and
distribution services entered into under the pilot program shall
include a clause to indemnify the Government against any failure
by the contractor to perform the support contract, and to remain
responsible for performance of the primary contract.

(e) Relationship to Treaty Obligations.--The Secretary shall ensure
that the exercise of authority under the pilot program under this
section does not conflict with any obligation of the United States under
any treaty or other international agreement.
(f) Reports.--
(1) Secretary of defense.--Not later than the end of the
fourth year of operation of the pilot program, the Secretary of
Defense shall submit to the Committees on Armed Services of the
Senate and House of Representatives a report describing--
(A) the cost effectiveness for both the Government
and industry of the pilot program; and
(B) how support contracts under the pilot program
affected meeting the requirements of primary contracts.
(2) Comptroller general.--Not later than the end of the
fifth year of operation of the pilot program, the Comptroller
General of the United States shall review the report of the
Secretary under paragraph (1) for sufficiency and provide such
recommendations in a report to the Committees on Armed Services
of the Senate and House of Representatives as the Comptroller
General considers appropriate.

(g) Sunset.--The authority to enter into contracts under the pilot
program shall expire six years after the date of the enactment of this
Act. Any contracts entered into before such date shall continue in
effect according to their terms.

[[Page 2318]]

SEC. 884. <>  NONTRADITIONAL AND SMALL
CONTRACTOR INNOVATION PROTOTYPING PROGRAM.

(a) In General.--The Secretary of Defense shall conduct a pilot
program for nontraditional defense contractors and small business
concerns to design, develop, and demonstrate innovative prototype
military platforms of significant scope for the purpose of demonstrating
new capabilities that could provide alternatives to existing acquisition
programs and assets. The Secretary shall establish the pilot program
within the Departments of the Army, Navy, and Air Force, the Missile
Defense Agency, and the United States Special Operations Command.
(b) Funding.--There is authorized to be made available $250,000,000
from the Rapid Prototyping Fund established under section 804(d) of the
National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-
92; 10 U.S.C. 2302 note) to carry out the pilot program.
(c) Plan.--
(1) In general.--The Secretary of Defense shall submit to
the congressional defense committees, concurrent with the budget
for the Department of Defense for fiscal year 2018, as submitted
to Congress pursuant to section 1105 of title 31, United States
Code, a plan to fund and carry out the pilot program in future
years.
(2) Elements.--The plan submitted under paragraph (1) shall
consider maximizing use of--
(A) broad agency announcements or other merit-based
selection procedures;
(B) the Department of Defense Acquisition Challenge
Program authorized under section 2359b of title 10,
United States Code;
(C) the foreign comparative test program;
(D) projects carried out under the Rapid Innovation
Program of the Department of Defense or pursuant to a
Phase III agreement (as defined in section 9(r)(2) of
the Small Business Act (15 U.S.C. 638(r)(2))); and
(E) streamlined procedures for acquisition provided
under section 804 of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C.
2302 note) and procedures for alternative acquisition
pathways established under section 805 of such Act (10
U.S.C. 2302 note).

(d) Programs To Be Included.--As part of the pilot program, the
Secretary of Defense shall allocate up to $50,000,000 on a fixed price
contractual basis for fiscal year 2017 or pursuant to the plan submitted
under subsection (c) for demonstrations of the following capabilities:
(1) Swarming of multiple unmanned air vehicles.
(2) Unmanned, modular fixed-wing aircraft that can be
rapidly adapted to multiple missions and serve as a fifth
generation weapons augmentation platform.
(3) Vertical takeoff and landing tiltrotor aircraft.
(4) Integration of a directed energy weapon on an air, sea,
or ground platform.
(5) Swarming of multiple unmanned underwater vehicles.
(6) Commercial small synthetic aperture radar (SAR)
satellites with on-board machine learning for automated, real-
time feature extraction and predictive analytics.

[[Page 2319]]

(7) Active protection system to defend against rocket-
propelled grenades and anti-tank missiles.
(8) Defense against hypersonic weapons, including sensors.
(9) Other systems as designated by the Secretary.

(e) Definitions.--In this section:
(1) Nontraditional defense contractor.--The term
``nontraditional defense contractor'' has the meaning given the
term in section 2302(9) of title 10, United States Code.
(2) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).

(f) Sunset.--The authority under this section expires at the close
of September 30, 2026.

Subtitle H--Other Matters

SEC. 885. REPORT ON BID PROTESTS.

(a) Report Required.--Not later than 270 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 on the prevalence and impact of bid protests on
Department of Defense acquisitions, including protests filed with
contracting agencies, the Government Accountability Office, and the
Court of Federal Claims.
(b) Elements.--The report required by subsection (a) shall cover
Department of Defense contracts and include, at a minimum, the following
elements:
(1) For employees of the Department, including the
contracting officers, program executive officers, and program
managers, the extent and manner in which the bid protest system
affects or is perceived to affect--
(A) the development of a procurement to avoid
protests rather than improve acquisition;
(B) the quality or quantity of pre-proposal
discussions, discussions of proposals, or post-award
debriefings;
(C) the decision to use lowest price technically
acceptable procurement methods;
(D) the decision to make multiple awards or
encourage teaming;
(E) the ability to meet an operational or mission
need or address important requirements;
(F) the decision to use sole source award methods;
and
(G) the decision to exercise options on existing
contracts.
(2) With respect to a company bidding on contracts or task
or delivery orders, the extent and manner in which the bid
protest system affects or is perceived to affect--
(A) the decision to offer a bid or proposal on
single award or multiple award contracts when the
company is the incumbent contractor;
(B) the decision to offer a bid or proposal on
single award or multiple award contracts when the
company is not the incumbent contractor;

[[Page 2320]]

(C) the ability to engage in pre-proposal
discussions, discussions of proposals, or post -award
debriefings;
(D) the decision to participate in a team or joint
venture; and
(E) the decision to file a protest with the agency
concerned, the Government Accountability Office, or the
Court of Federal Claims.
(3) A description of trends in the number of bid protests
filed with agencies, the Government Accountability Office, and
Federal courts, the effectiveness of each forum for contracts
and task or delivery orders, and the rate of such bid protests
compared to contract obligations and the number of contracts.
(4) An analysis of bid protests filed by incumbent
contractors, including--
(A) the rate at which such protesters are awarded
bridge contracts or contract extensions over the period
that the protest remains unresolved; and
(B) an assessment of the cost and schedule impact of
successful and unsuccessful bid protests filed by
incumbent contractors on contracts for services with a
value in excess of $100,000,000.
(5) A comparison of the number of protests, the values of
contested orders or contracts, and the outcome of protests for--
(A) awards of contracts compared to awards of task
or delivery orders;
(B) contracts or orders primarily for products,
compared to contracts or orders primarily for services;
(C) protests filed pre-award to challenge the
solicitation compared to those filed post-award;
(D) contracts or awards with single protestors
compared to multiple protestors; and
(E) contracts with single awards compared to
multiple award contracts.
(6) An analysis of the number and disposition of protests
filed with the contracting agency.
(7) A description of trends in the number of bid protests
filed as a percentage of contracts and as a percentage of task
or delivery orders awarded during the same period of time,
overall and set forth separately by the value of the contract or
order, as follows:
(A) Contracts valued in excess of $3,000,000,000.
(B) Contracts valued between $500,000,000 and
$3,000,000,000.
(C) Contracts valued between $50,000,000 and
$500,000,000.
(D) Contracts valued between $10,000,000 and
$50,000,000.
(E) Contracts valued under $10,000,000.
(8) An assessment of the cost and schedule impact of
successful and unsuccessful bid protests filed on contracts
valued in excess of $3,000,000,000.
(9) An analysis of how often protestors are awarded the
contract that was the subject of the bid protest.
(10) A summary of the results of protests in which the
contracting agencies took unilateral corrective action,
including--

[[Page 2321]]

(A) at what point in the bid protest process the
agency agreed to take corrective action;
(B) the average time for remedial action to be
completed; and
(C) a determination regarding--
(i) whether or to what extent the decision to
take the corrective action was a result of a
determination by the agency that there had been a
probable violation of law or regulation; or
(ii) whether or to what extent such corrective
action was a result of some other factor.
(11) A description of the time it takes agencies to
implement corrective actions after a ruling or decision, and the
percentage of those corrective actions that are subsequently
protested, including the outcome of any subsequent protest.
(12) An analysis of those contracts with respect to which a
company files a protest (referred to as the ``initial protest'')
and later files another protest (referred to as the ``subsequent
protest''), analyzed by the forum of the initial protest and the
subsequent protest, including any difference in the outcome,
between the forums.
(13) An analysis of the effect of the quantity and quality
of debriefings on the frequency of bid protests.
(14) An analysis of the time spent at each phase of the
procurement process attempting to prevent a protest, addressing
a protest, or taking corrective action in response to a protest,
including the efficacy of any actions attempted to prevent the
occurrence of a protest.

(c) Briefing.--Not later than March 1, 2017, the Secretary, or his
designee, shall brief the Committees on Armed Services of the Senate and
House of Representatives on interim findings of the independent entity.
(d) Report.--Not later than one year after the date of the enactment
of this Act, the independent entity that conducts the study under
subsection (a) shall provide to the Secretary of Defense and the
congressional defense committees a report on the results of the study,
along with any related recommendations.
SEC. 886. REVIEW AND REPORT ON INDEFINITE DELIVERY CONTRACTS.

(a) Report.--The Comptroller General of the United States shall
deliver, not later than March 31, 2018, a report to Congress on the use
by the Department of Defense of indefinite delivery contracts entered
into during fiscal years 2015, 2016, and 2017.
(b) Elements.--The report under subsection (a) shall address, at a
minimum, the following:
(1) A review of Department of Defense policies for entering
into and using indefinite delivery contracts, including
requirements for competition, as well as the guidance, if any,
on the appropriate number of vendors that should receive
multiple award indefinite delivery contracts.
(2) The number and value of all indefinite delivery
contracts entered into by the Department of Defense, including
the number and value of such contracts entered into with a
single vendor.

[[Page 2322]]

(3) An assessment of the number and value of indefinite
delivery contracts entered into by the Department of Defense
that included competition between multiple vendors.
(4) Selected case studies of indefinite delivery contracts,
including an assessment of whether any such contracts may have
limited future opportunities for competition for the services or
items required.
(5) Recommendations for potential changes to current law or
Department of Defense acquisition regulations or guidance to
promote competition with respect to indefinite delivery
contracts.
SEC. 887. REVIEW AND REPORT ON CONTRACTUAL FLOW-DOWN PROVISIONS.

(a) Review Required.--The Secretary of Defense shall conduct a
review of contractual flow-down provisions related to major defense
acquisition programs on contractors and suppliers, including small
businesses, contractors for commercial items, nontraditional defense
contractors, universities, and not-for-profit research institutions. The
review shall--
(1) identify the flow-down provisions that exist in the
Federal Acquisition Regulation and the Defense Federal
Acquisition Regulation Supplement;
(2) identify the flow-down provisions that are critical for
national security;
(3) examine the extent to which clauses in contracts with
the Department of Defense are being applied inappropriately in
subcontracts under the contracts;
(4) assess the applicability of flow-down provisions for the
purchase of commodity items that are acquired in bulk for
multiple acquisition programs;
(5) determine the unnecessary costs or burdens, if any, of
flow-down provisions on the supply chain;
(6) determine the effect, if any, of flow-down provisions on
the participation rate of small businesses, contractors for
commercial items, nontraditional defense contractors,
universities, and not-for-profit research organizations in
defense acquisition efforts; and
(7) determine the effect, if any, of flow-down provisions on
Department of Defense access to advanced research and technology
capabilities available in the private sector.

(b) Contract.--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 entity with appropriate expertise to
conduct the review required by subsection (a).
(c) Report.--Not later than August 1, 2017, the Secretary shall
submit to the congressional defense committees a report on the findings
of the independent entity, along with a description of any actions that
the Secretary proposes to address the findings of the independent
entity.
SEC. 888. <>  REQUIREMENT AND REVIEW
RELATING TO USE OF BRAND NAMES OR BRAND-
NAME OR EQUIVALENT DESCRIPTIONS IN
SOLICITATIONS.

(a) Requirement.--The Secretary of Defense shall ensure that
competition in Department of Defense contracts is not limited

[[Page 2323]]

through the use of specifying brand names or brand-name or equivalent
descriptions, or proprietary specifications or standards, in
solicitations unless a justification for such specification is provided
and approved in accordance with section 2304(f) of title 10, United
States Code.
(b) Review of Anti-competitive Specifications in Information
Technology Acquisitions.--
(1) Review required.--Not later than 180 days after the date
of the enactment of this Act, the Under Secretary of Defense for
Acquisition, Technology, and Logistics shall conduct a review of
the policy, guidance, regulations, and training related to
specifications included in information technology acquisitions
to ensure current policies eliminate the unjustified use of
potentially anti-competitive specifications. In conducting the
review, the Under Secretary shall examine the use of brand names
or proprietary specifications or standards in solicitations for
procurements of goods and services, as well as the current
acquisition training curriculum related to those areas.
(2) Briefing required.--Not later than 270 days after the
date of the enactment of this Act, the Under Secretary shall
provide a briefing to the Committees on Armed Services of the
Senate and House of Representatives on the results of the review
required by paragraph (1).
(3) Additional guidance.--Not later than one year after the
date of the enactment of this Act, the Under Secretary shall
revise policies, guidance, and training to incorporate such
recommendations as the Under Secretary considers appropriate
from the review required by paragraph (1).
SEC. 889. <>  INCLUSION OF INFORMATION ON
COMMON GROUNDS FOR SUSTAINING BID PROTESTS
IN ANNUAL GOVERNMENT ACCOUNTABILITY OFFICE
REPORTS TO CONGRESS.

The Comptroller General of the United States shall include in the
annual report to Congress on the Government Accountability Office each
year a list of the most common grounds for sustaining protests relating
to bids for contracts during such year.
SEC. 890. STUDY AND REPORT ON CONTRACTS AWARDED TO MINORITY-OWNED
AND WOMEN-OWNED BUSINESSES.

(a) Study.--The Comptroller General of the United States shall carry
out a study on the number and types of contracts for the procurement of
goods or services for the Department of Defense awarded to minority-
owned and women-owned businesses during fiscal years 2010 through 2015.
In conducting the study, the Comptroller General shall identify
minority-owned businesses according to the categories identified in the
Federal Procurement Data System (described in section 1122(a)(4)(A) of
title 41, United States Code).
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Comptroller General shall submit to the congressional
defense committees a report on the results of the study under subsection
(a).
SEC. 891. AUTHORITY TO PROVIDE REIMBURSABLE AUDITING SERVICES TO
CERTAIN NON-DEFENSE AGENCIES.

Section 893(a) of the National Defense Authorization Act for Fiscal
Year 2016 (Public Law 114-92; 10 U.S.C. 2313 note) is amended--

[[Page 2324]]

(1) in paragraph (1), by inserting ``except as provided in
paragraph (2),'' after ``this Act,''; and
(2) by amending paragraph (2) to read as follows:
``(2) Exception for national nuclear security
administration.--Notwithstanding paragraph (1), the Defense
Contract Audit Agency may provide audit support on a
reimbursable basis for the National Nuclear Security
Administration.''.
SEC. 892. <>  SELECTION OF SERVICE
PROVIDERS FOR AUDITING SERVICES AND AUDIT
READINESS SERVICES.

The Department of Defense shall select service providers for
auditing services and audit readiness services based on the best value
to the Department, as determined by the resource sponsor for an auditing
contract, rather than based on the lowest price technically acceptable
service provider.
SEC. 893. AMENDMENTS TO CONTRACTOR BUSINESS SYSTEM REQUIREMENTS.

(a) Business System Requirements.--Section 893 of the Ike Skelton
National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-
383; 10 U.S.C. 2302 note) is amended in subsection (b)(1), by striking
``system requirements'' and inserting ``clear and specific business
system requirements that are identified and made publicly available''.
(b) Third-party Independent Auditor Reviews.--Section 893 of such
Act is further amended--
(1) by redesignating subsections (c), (d), (e), (f), and (g)
as subsections (d), (e), (f), (g), and (h), respectively; and
(2) by inserting after subsection (b) the following new
subsection (c):

``(c) Review by Third-party Independent Auditors.--The review
process for contractor business systems pursuant to subsection (b)(2)
shall--
``(1) if a registered public accounting firm attests to the
internal control assessment of a contractor, pursuant to section
404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262(b)),
allow the contractor, subject to paragraph (3), to submit
certified documentation from such registered public accounting
firm that the contractor business systems of the contractor meet
the business system requirements referred to in subsection
(b)(1) and to thereby eliminate the need for further review of
the contractor business systems by the Secretary of Defense;
``(2) limit the review, subject to paragraph (3), of the
contractor business systems of a contractor that is not a
covered contractor to confirming that the contractor uses the
same contractor business system for its Government and
commercial work and that the outputs of the contractor business
system based on statistical sampling are reasonable; and
``(3) allow a milestone decision authority to require a
review of a contractor business system of a contractor that
submits documentation pursuant to paragraph (1) or that is not a
covered contractor after determining in writing that such a
review is necessary to appropriately manage contractual risk.''.

(c) Amendment to Definition of Covered Contractor.--Section 893 of
such Act is further amended in subsection (g), as so redesignated, by
striking ``means a contractor'' and all that follows and inserting
``means a contractor that has covered contracts

[[Page 2325]]

with the United States Government accounting for greater than 1 percent
of its total gross revenue, except that the term does not include any
contractor that is exempt, under section 1502 of title 41, United States
Code, or regulations implementing that section, from using full cost
accounting standards established in that section.''.
(d) Repeal of Obsolete Deadline.--Section 893 of such Act is further
amended in subsection (a) by striking ``Not later than 270 days after
the date of the enactment of this Act, the'' and inserting ``The''.
SEC. 894. <>  IMPROVED MANAGEMENT
PRACTICES TO REDUCE COST AND IMPROVE
PERFORMANCE OF CERTAIN DEPARTMENT OF
DEFENSE ORGANIZATIONS.

(a) In General.--Beginning not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense shall designate
units, subunits, or entities of the Department of Defense, other than
Centers of Industrial and Technical Excellence designated pursuant to
section 2474 of title 10, United States Code, that conduct work that is
commercial in nature or is not inherently governmental to prioritize
efforts to conduct business operations in a manner that uses modern,
commercial management practices and principles to reduce the costs and
improve the performance of such organizations.
(b) Adoption of Modern Business Practices.--The Secretary shall
ensure that each such unit, subunit, or entity of the Department
described in subsection (a) is authorized to adopt and implement best
commercial and business management practices to achieve the goals
described in such subsection.
(c) Waivers.--The Secretary shall authorize waivers of Department of
Defense, military service, and Defense Agency regulations, as
appropriate, to achieve the goals in subsection (a), including in the
following areas:
(1) Financial management.
(2) Human resources.
(3) Facility and plant management.
(4) Acquisition and contracting.
(5) Partnerships with the private sector.
(6) Other business and management areas as identified by the
Secretary.

(d) Goals.--The Secretary of Defense shall identify savings goals to
be achieved through the implementation of the commercial and business
management practices adopted under subsection (b), and establish a
schedule for achieving the savings.
(e) Budget Adjustment.--The Secretary shall establish policies to
adjust organizational budget allocations, at the Secretary's discretion,
for purposes of--
(1) using savings derived from implementation of best
commercial and business management practices for high priority
military missions of the Department of Defense;
(2) creating incentives for the most efficient and effective
development and adoption of new commercial and business
management practices by organizations; and
(3) investing in the development of new commercial and
business management practices that will result in further
savings to the Department of Defense.

[[Page 2326]]

(f) Budget Baselines.--Beginning not later than one year after the
date of the enactment of this Act, each such unit, subunit, or entity of
the Department described in subsection (a) shall, in accordance with
such guidance as the Secretary of Defense shall establish for purposes
of this section--
(1) establish an annual baseline cost estimate of its
operations; and
(2) certify that costs estimated pursuant to paragraph (1)
are wholly accounted for and presented in a format that is
comparable to the format for the presentation of such costs for
other elements of the Department or consistent with best
commercial practices.
SEC. 895. <>  EXEMPTION FROM REQUIREMENT
FOR CAPITAL PLANNING AND INVESTMENT
CONTROL FOR INFORMATION TECHNOLOGY
EQUIPMENT INCLUDED AS INTEGRAL PART OF A
WEAPON OR WEAPON SYSTEM.

(a) Waiver Authority.--Notwithstanding subsection (c)(2) of section
11103 of title 40, United States Code, a national security system
described in subsection (a)(1)(D) of such section shall not be subject
to the requirements of paragraphs (2) through (5) of section 11312(b) of
such title unless the milestone decision authority determines in writing
that application of such requirements is appropriate and in the best
interests of the Department of Defense.
(b) Milestone Decision Authority Defined.--In this section, the term
``milestone decision authority'' has the meaning given the term in
section 2366a(d)(7) of title 10, United States Code.
SEC. 896. MODIFICATIONS TO PILOT PROGRAM FOR STREAMLINING AWARDS
FOR INNOVATIVE TECHNOLOGY PROJECTS.

Section 873 of the National Defense Authorization Act for Fiscal
Year 2016 (Public Law 114-92; 10 U.S.C. 2306a note) is amended--
(1) in subsection (a)(2), by inserting ``or Small Business
Technology Transfer Program'' after ``Small Business Innovation
Research Program'';
(2) in subsection (b)--
(A) by inserting ``subparagraphs (A), (B), and (C)
of section 2313(a)(2) of title 10, United States Code,
and'' before ``subsection (b) of section 2313''; and
(B) in paragraph (2), by inserting ``, and if such
performance audit is initiated within 18 months of the
contract completion'' before the period at the end;
(3) <>  by redesignating subsections (c),
(d), and (e) as subsections (f), (g), and (h), respectively; and
(4) by inserting after subsection (b) the following new
subsections:

``(c) Treatment as Competitive Procedures.--Use of a technical,
merit-based selection procedure or the Small Business Innovation
Research Program or Small Business Technology Transfer Program for the
pilot program under this section shall be considered to be use of
competitive procedures for purposes of chapter 137 of title 10, United
States Code.
``(d) Discretion To Use Non-certified Accounting Systems.--In
executing programs under this pilot program, the Secretary of Defense
shall establish procedures under which a small business or
nontraditional contractor may engage an independent certified public
accountant for the review and certification of its

[[Page 2327]]

accounting system for the purposes of any audits required by regulation,
unless the head of the agency determines that this is not appropriate
based on past performance of the specific small business or
nontraditional defense contractor, or based on analysis of other
information specific to the award.
``(e) Guidance and Training.--The Secretary of Defense shall ensure
that acquisition and auditing officials are provided guidance and
training on the flexible use and tailoring of authorities under the
pilot program to maximize efficiency and effectiveness.''.
SEC. 897. RAPID PROTOTYPING FUNDS FOR THE MILITARY DEPARTMENTS.

Section 804(d) of the National Defense Authorization Act for Fiscal
Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note), as amended by
section 864 of this Act, is further amended--
(1) in the subsection heading, by striking ``Fund'' and
inserting ``Funds'';
(2) in paragraph (1), by striking ``In general.--The
Secretary'' and inserting the following: ``Department of defense
rapid prototyping fund.--
``(A) In general.--The Secretary'';
(3) by redesignating paragraphs (2) and (3) as subparagraphs
(B) and (C), respectively, and moving such subparagraphs, as so
redesignated, two ems to the right;
(4) in subparagraph (B), as redesignated by paragraph (3),
by striking ``this subsection'' and inserting ``this
paragraph''; and
(5) by inserting after paragraph (1) the following new
paragraph:
``(2) Rapid prototyping funds for the military
departments.--The Secretary of each military department may
establish a military department-specific fund (and, in the case
of the Secretary of the Navy, including the Marine Corps) to
provide funds, in addition to other funds that may be available
to the military department concerned, for acquisition programs
under the rapid fielding and prototyping pathways established
pursuant to this section. Each military department-specific fund
shall consist of amounts appropriated or credited to the
fund.''.
SEC. 898. <>  ESTABLISHMENT OF PANEL ON
DEPARTMENT OF DEFENSE AND ABILITYONE
CONTRACTING OVERSIGHT, ACCOUNTABILITY, AND
INTEGRITY; DEFENSE ACQUISITION UNIVERSITY
TRAINING.

(a) Establishment of Panel on Department of Defense and AbilityOne
Contracting Oversight, Accountability, and Integrity.--
(1) In general.--The Secretary of Defense shall establish a
panel to be known as the ``Panel on Department of Defense and
AbilityOne Contracting Oversight, Accountability, and
Integrity'' (hereafter in this section referred to as the
``Panel''). The Panel shall be supported by the Defense
Acquisition University, established under section 1746 of title
10, United States Code, and the National Defense University,
including administrative support.
(2) Composition.--The Panel shall be composed of the
following:

[[Page 2328]]

(A) A representative of the Under Secretary of
Defense for Acquisition, Technology, and Logistics, who
shall be the chairman of the Panel.
(B) A representative from the AbilityOne Commission.
(C) A representative of the service acquisition
executive of each military department and Defense Agency
(as such terms are defined, respectively, in section 101
of title 10, United States Code).
(D) A representative of the Under Secretary of
Defense (Comptroller).
(E) A representative of the Inspector General of the
Department of Defense and the AbilityOne Commission.
(F) A representative from each of the Army Audit
Agency, the Navy Audit Service, the Air Force Audit
Agency, and the Defense Contract Audit Agency.
(G) The President of the Defense Acquisition
University, or a designated representative.
(H) One or more subject matter experts on veterans
employment from a veterans service organization.
(I) A representative of the Commission Directorate
of Veteran Employment of the AbilityOne Commission whose
duties include maximizing opportunities to employ
significantly disabled veterans in accordance with the
regulations of the AbilityOne Commission.
(J) One or more representatives from the Department
of Justice who are subject matter experts on compliance
with disability rights laws applicable to contracts of
the Department of Defense and the AbilityOne Commission.
(K) One or more representatives from the Department
of Justice who are subject matter experts on Department
of Defense contracts, Federal Prison Industries, and the
requirements of the Javits-Wagner-O'Day Act.
(L) Such other representatives as may be determined
appropriate by the Under Secretary of Defense for
Acquisition, Technology, and Logistics.

(b) Meetings.--The Panel shall meet as determined necessary by the
chairman of the Panel, but not less often than once every three months.
(c) Duties.--The Panel shall--
(1) review the status of and progress relating to the
implementation of the recommendations of report number DODIG-
2016-097 of the Inspector General of the Department of Defense
titled ``DoD Generally Provided Effective Oversight of
AbilityOne Contracts'', published on June 17, 2016;
(2) recommend actions the Department of Defense and the
AbilityOne Commission may take to eliminate waste, fraud, and
abuse with respect to contracts of the Department of Defense and
the AbilityOne Commission;
(3) recommend actions the Department of Defense and the
AbilityOne Commission may take to ensure opportunities for the
employment of significantly disabled veterans and the blind and
other severely disabled individuals;
(4) recommend changes to law, regulations, and policy that
the Panel determines necessary to eliminate vulnerability to
waste, fraud, and abuse with respect to the performance of
contracts of the Department of Defense;

[[Page 2329]]

(5) recommend criteria for veterans with disabilities to be
eligible for employment opportunities through the programs of
the AbilityOne Commission that considers the definitions of
disability used by the Secretary of Veterans Affairs and the
AbilityOne Commission;
(6) recommend ways the Department of Defense and the
AbilityOne Commission may explore opportunities for competition
among qualified nonprofit agencies or central nonprofit agencies
and ensure an equitable selection and allocation of work to
qualified nonprofit agencies;
(7) recommend changes to business practices, information
systems, and training necessary to ensure that--
(A) the AbilityOne Commission complies with
regulatory requirements related to the establishment and
maintenence of the procurement list established pursuant
to section 8503 of title 41, United States Code; and
(B) the Department of Defense complies with the
statutory and regulatory requirements for use of such
procurement list; and
(8) any other duties determined necessary by the Secretary
of Defense.

(d) Consultation.--To carry out the duties described in subsection
(c), the Panel may consult or contract with other executive agencies and
with experts from qualified nonprofit agencies or central nonprofit
agencies on--
(1) compliance with disability rights laws applicable to
contracts of the Department of Defense and the AbilityOne
Commission;
(2) employment of significantly disabled veterans; and
(3) vocational rehabilitation.

(e) Authority.--To carry out the duties described in subsection (c),
the Panel may request documentation or other information needed from the
AbilityOne Commission, central nonprofit agencies, and qualified
nonprofit agencies.
(f) Panel Recommendations and Milestone Dates.--
(1) Milestone dates for implementing recommendations.--After
consulting with central nonprofit agencies and qualified
nonprofit agencies, the Panel shall suggest milestone dates for
the implementation of the recommendations made under subsection
(c) and shall notify the congressional defense committees, the
Committee on Oversight and Government Reform of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, qualified nonprofit
agencies, and central nonprofit agencies of such dates.
(2) Notification of implementation of recommendations.--
After the establishment of milestone dates under paragraph (1),
the Panel may review the activities, including contracts, of the
AbilityOne Commission, the central nonprofit agencies, and the
relevant qualified nonprofit agencies to determine if the
recommendations made under subsection (c) are being
substantially implemented in good faith by the AbilityOne
Commission or such agencies. If the Panel determines that the
AbilityOne Commission or any such agency is not implementing the
recommendations, the Panel shall notify the Secretary of
Defense, the congressional defense committees, the Committee on
Oversight and Government Reform of the House

[[Page 2330]]

of Representatives, and the Committee on Homeland Security and
Governmental Affairs of the Senate.

(g) Remedies.--
(1) In general.--Upon receiving notification under
subsection (f)(2) and subject to the limitation in paragraph
(2), the Secretary of Defense may take one of the following
actions:
(A) With respect to a notification relating to the
AbilityOne Commission, the Secretary may suspend
compliance with the requirement to procure a product or
service in section 8504 of title 41, United States Code,
until the date on which the Secretary notifies Congress,
in writing, that the AbilityOne Commission is
substantially implementing the recommendations made
under subsection (c).
(B) With respect to a notification relating to a
qualified nonprofit agency, the Secretary may terminate
a contract with such agency that is in existence on the
date of receipt of such notification, or elect to not
enter into a contract with such agency after such date,
until the date on which the AbilityOne Commission
certifies to the Secretary that such agency is
substantially implementing the recommendations made
under subsection (c).
(C) With respect to a notification relating to a
central nonprofit agency, the Secretary may include a
term in a contract entered into after the date of
receipt of such notification with a qualified nonprofit
agency that is under such central nonprofit agency that
states that such qualified nonprofit agency shall not
pay a fee to such central nonprofit agency until the
date on which the AbilityOne Commission certifies to the
Secretary that such central nonprofit agency is
substantially implementing the recommendations made
under subsection (c).
(2) Limitation.--If the Secretary of Defense takes any of
the actions described in paragraph (1), the Secretary shall
coordinate with the AbilityOne Commission or the relevant
central nonprofit agency, as appropriate, to fully implement the
recommendations made under subsection (c). On the date on which
such recommendations are fully implemented, the Secretary shall
notify Congress, in writing, and the Secretary's authority under
paragraph (1) shall terminate.

(h) Progress Reports.--
(1) Consultation on recommendations.--Before submitting the
progress report required under paragraph (2), the Panel shall
consult with the AbilityOne Commission on draft recommendations
made pursuant to subsection (c). The Panel shall include any
recommendations of the AbilityOne Commission in the progress
report submitted under paragraph (2).
(2) Progress report.--Not later than 180 days after the date
of the enactment of this Act, the Panel shall submit to the
Secretary of Defense, the Chairman of the AbilityOne Commission,
the congressional defense committees, the Committee on Oversight
and Government Reform of the House of Representatives, and the
Committee on Homeland Security and Governmental Affairs of the
Senate a progress report on the activities of the Panel.

(i) Annual Report.--
(1) Consultation on report.--Before submitting the annual
report required under paragraph (2), the Panel shall

[[Page 2331]]

consult with the AbilityOne Commission on the contents of the
report. The Panel shall include any recommendations of the
AbilityOne Commission in the report submitted under paragraph
(2).
(2) Report.--Not later than September 30, 2017, and annually
thereafter for the next three years, the Panel shall submit to
the Secretary of Defense, the Chairman of the AbilityOne
Commission, the congressional defense committees, the Committee
on Oversight and Government Reform of the House of
Representatives, and the Committee on Homeland Security and
Governmental Affairs of the Senate a report that includes--
(A) a summary of findings and recommendations for
the year covered by the report;
(B) a summary of the progress of the relevant
qualified nonprofit agencies or central nonprofit
agencies in implementing recommendations of the previous
year's report, if applicable;
(C) an examination of the current structure of the
AbilityOne Commission to eliminate waste, fraud, and
abuse and to ensure contracting integrity and
accountability for any violations of law or regulations;
(D) recommendations for any changes to the
acquisition and contracting practices of the Department
of Defense and the AbilityOne Commission to improve the
delivery of goods and services to the Department of
Defense; and
(E) recommendations for administrative safeguards to
ensure the Department of Defense and the AbilityOne
Commission are in compliance with the requirements of
the Javits-Wagner-O'Day Act, Federal civil rights law,
and regulations and policy related to the performance of
contracts of the Department of Defense with qualified
nonprofit agencies and the contracts of the AbilityOne
Commission with central nonprofit agencies.

(j) Sunset.--The Panel shall terminate on the date of submission of
the last annual report required under subsection (i).
(k) Inapplicability of FACA.--The requirements of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the Panel
established pursuant to subsection (a).
(l) Defense Acquisition University Training.--
(1) In general.--The Secretary of Defense shall establish a
training program at the Defense Acquisition University
established under section 1746 of title 10, United States Code.
Such training shall include--
(A) information about--
(i) the mission of the AbilityOne Commission;
(ii) the employment of significantly disabled
veterans through contracts from the procurement
list maintained by the AbilityOne Commission;
(iii) reasonable accommodations and
accessibility requirements for the blind and other
severely disabled individuals; and
(iv) Executive orders and other subjects
related to the blind and other severely disabled
individuals, as determined by the Secretary of
Defense; and
(B) procurement, acquisition, program management,
and other training specific to procuring goods and
services

[[Page 2332]]

for the Department of Defense pursuant to the Javits-
Wagner-O'Day Act.
(2) Acquisition workforce assignment.--Members of the
acquisition workforce (as defined in section 101 of title 10,
United States Code) who have participated in the training
described in paragraph (1) are eligible for a detail to the
AbilityOne Commission.
(3) Abilityone commission assignment.--Career employees of
the AbilityOne Commission may participate in the training
program described in paragraph (1) on a non-reimbursable basis
for up to three years and on a non-reimbursable or reimbursable
basis thereafter.
(4) Funding.--Amounts from the Department of Defense
Acquisition Workforce Development Fund established under section
1705 of title 10, United States Code, are authorized for use for
the detail of members of the acquisition workforce to the
AbilityOne Commission.

(m) Definitions.--In this section:
(1) The term ``AbilityOne Commission'' means the Committee
for Purchase From People Who Are Blind or Severely Disabled
established under section 8502 of title 41, United States Code.
(2) The terms ``blind'', ``qualified nonprofit agency for
the blind'', ``qualified nonprofit agency for other severely
disabled'', and ``severely disabled individual'' have the
meanings given such terms under section 8501 of such title.
(3) The term ``central nonprofit agency'' means a central
nonprofit agency designated under section 8503(c) of such title.
(4) The term ``executive agency'' has the meaning given such
term in section 133 of such title.
(5) The term ``Javits-Wagner-O'Day Act'' means chapter 85 of
such title.
(6) The term ``qualified nonprofit agency'' means--
(A) a qualified nonprofit agency for the blind; or
(B) a qualified nonprofit agency for other severely
disabled.
(7) The term ``significantly disabled veteran'' means a
veteran (as defined in section 101 of title 38, United States
Code) who is a severely disabled individual.
SEC. 899. COAST GUARD MAJOR ACQUISITION PROGRAMS.

(a) Functions of Chief Acquisition Officer.--Section 56(c) of title
14, United States Code, is amended by striking ``and'' after the
semicolon at the end of paragraph (8), striking the period at the end of
paragraph (9) and inserting ``; and'', and adding at the end the
following:
``(10)(A) keeping the Commandant informed of the progress of
major acquisition programs (as that term is defined in section
581);
``(B) informing the Commandant on a continuing basis of any
developments on such programs that may require new or revisited
trade-offs among cost, schedule, technical feasibility, and
performance, including--
``(i) significant cost growth or schedule slippage;
and
``(ii) requirements creep (as that term is defined
in section 2547(c)(1) of title 10); and

[[Page 2333]]

``(C) ensuring that the views of the Commandant regarding
such programs on cost, schedule, technical feasibility, and
performance trade-offs are strongly considered by program
managers and program executive officers in all phases of the
acquisition process.''.

(b) Customer Service Mission of Directorate.--
(1) In general.--Chapter 15 of title 14, United States Code,
is amended--
(A) in section 561(b)--
(i) in paragraph (1), by striking ``; and''
and inserting a semicolon;
(ii) in paragraph (2), by striking the period
and inserting ``; and''; and
(iii) by adding at the end the following:
``(3) to meet the needs of customers of major acquisition
programs in the most cost-effective manner practicable.'';
(B) in section 562, by repealing subsection (b) and
redesignating subsections (c), (d), (f), and (g) as
subsections (b), (c), (d), and (e), respectively;
(C) in section 563, by striking ``Not later than 180
days after the date of enactment of the Coast Guard
Authorization Act of 2010, the Commandant shall commence
implementation of'' and inserting ``The Commandant shall
maintain'';
(D) by adding at the end of section 564 the
following:

``(c) Acquisition of Unmanned Aerial Systems.--
``(1) In general.--During any fiscal year for which funds
are appropriated for the design or construction of the Offshore
Patrol Cutter, the Commandant--
``(A) may not award a contract for design of an
unmanned aerial system for use by the Coast Guard; and
``(B) may acquire an unmanned aerial system only--
``(i) if such a system has been acquired by,
or has been used by, the Department of Defense or
the Department of Homeland Security, or a
component thereof, before the date on which the
Commandant acquires the system; and
``(ii) through an agreement with such a
department or component, unless the unmanned
aerial system can be obtained at less cost through
independent contract action.
``(2) Limitations on application.--
``(A) Small unmanned aerial systems.--The
limitations in paragraph (1)(B) do not apply to any
small unmanned aerial system that consists of--
``(i) an unmanned aircraft weighing less than
55 pounds on takeoff, including all components and
equipment on board or otherwise attached to the
aircraft; and
``(ii) associated elements (including
communication links and the components that
control such aircraft) that are required for the
safe and efficient operation of such aircraft.
``(B) Previously funded systems.--The limitations in
paragraph (1) do not apply to the design or acquisition
of an unmanned aerial system for which funds for
research, development, test, and evaluation have been
received from

[[Page 2334]]

the Department of Defense or the Department of Homeland
Security'';
(E) in subchapter II, by adding at the end the
following:
``Sec. 578. <>  Role of Vice Commandant in
major acquisition programs

``The Vice Commandant--
``(1) shall represent the customer of a major acquisition
program with regard to trade-offs made among cost, schedule,
technical feasibility, and performance with respect to such
program; and
``(2) shall advise the Commandant in decisions regarding the
balancing of resources against priorities, and associated trade-
offs referred to in paragraph (1), on behalf of the customer of
a major acquisition program.
``Sec. 579. <>  Extension of major acquisition
program contracts

``(a) In General.--Notwithstanding section 564(a)(2) of this title
and section 2304 of title 10, and subject to subsections (b) and (c) of
this section, the Secretary may acquire additional units procured under
a Coast Guard major acquisition program contract, by extension of such
contract without competition, if the Director of the Cost Analysis
Division of the Department of Homeland Security determines that the
costs that would be saved through award of a new contract in accordance
with such sections would not exceed the costs of such an award.
``(b) Limitation on Number of Additional Units.--The number of
additional units acquired under a contract extension under this section
may not exceed the number of additional units for which such
determination is made.
``(c) Determination of Costs Upon Request.--The Director of the Cost
Analysis Division of the Department of Homeland Security shall, at the
request of the Secretary, determine for purposes of this section--
``(1) the costs that would be saved through award of a new
major acquisition program contract in accordance with section
564(a)(2) for the acquisition of a number of additional units
specified by the Secretary; and
``(2) the costs of such award, including the costs that
would be incurred due to acquisition schedule delays and asset
design changes associated with such award.

``(d) Number of Extensions.--A contract may be extended under this
section more than once.''; and
(F) in section 581--
(i) by redesignating paragraphs (7) through
(10) as paragraphs (9) through (12), respectively,
and by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively;
(ii) by inserting after paragraph (2) the
following:
``(3) Customer of a major acquisition program.--The term
`customer of a major acquisition program' means the operating
field unit of the Coast Guard that will field the system or
systems acquired under a major acquisition program.''; and
(iii) by inserting after paragraph (7), as so
redesignated, the following:
``(8) Major acquisition program.--The term `major
acquisition program' means an ongoing acquisition undertaken

[[Page 2335]]

by the Coast Guard with a life-cycle cost estimate greater than
or equal to $300,000,000.''.
(2) <>  Clerical amendment.--The
analysis at the beginning of such chapter is amended by adding
at the end of the items relating to subchapter II the following:

``578. Role of Vice Commandant in major acquisition programs.
``579. Extension of major acquisition program contracts.''.

(c) <>  Review Required.--
(1) Requirement.--The Commandant of the Coast Guard shall
conduct a review of--
(A) the authorities provided to the Commandant in
chapter 15 of title 14, United States Code, and other
relevant statutes and regulations related to Coast Guard
acquisitions, including developing recommendations to
ensure that the Commandant plays an appropriate role in
the development of requirements, acquisition processes,
and the associated budget practices;
(B) implementation of the strategy prepared in
accordance with section 562(b)(2) of title 14, United
States Code, as in effect before the enactment of the
National Defense Authorization Act for Fiscal Year 2017;
and
(C) acquisition policies, directives, and
regulations of the Coast Guard to ensure such policies,
directives, and regulations establish a customer-
oriented acquisition system.
(2) Report.--Not later than March 1, 2017, the Commandant
shall submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate a report
containing, at a minimum, the following:
(A) The recommendations developed by the Commandant
under paragraph (1) and other results of the review
conducted under such paragraph.
(B) The actions the Commandant is taking, if any,
within the Commandant's existing authority to implement
such recommendations.
(3) Modification of policies, directives, and regulations.--
Not later than one year after the date of the enactment of this
Act, the Commandant of the Coast Guard shall modify the
acquisition policies, directives, and regulations of the Coast
Guard as necessary to ensure the development and implementation
of a customer-oriented acquisition system, pursuant to the
review under paragraph (1)(C).

(d) Analysis of Using Multiyear Contracting.--
(1) In general.--No later than one year after the date of
the enactment of this Act, the Secretary of the department in
which the Coast Guard is operating shall submit to the Committee
on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate an analysis of the use of multiyear
contracting, including procurement authority provided under
section 2306b of title 10, United States Code, and authority
similar to that granted to the Navy under section 121(b) of the
National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85; 111 Stat. 1648) and section 150 of the Continuing
Appropriations Act, 2011 (Public Law

[[Page 2336]]

111-242; 124 Stat. 3519), to acquire any combination of at least
five--
(A) Fast Response Cutters, beginning with hull 43;
and
(B) Offshore Patrol Cutters, beginning with hull 5.
(2) Contents.--The analysis under paragraph (1) shall
include the costs and benefits of using multiyear contracting,
the impact of multiyear contracting on delivery timelines, and
whether the acquisitions examined would meet the tests for the
use of multiyear procurement authorities.
SEC. 899A. <>  ENHANCED AUTHORITY TO
ACQUIRE PRODUCTS AND SERVICES PRODUCED
IN AFRICA IN SUPPORT OF CERTAIN
ACTIVITIES.

(a) In General.--Except as provided in subsection (c), in the case
of a product or service to be acquired in support of covered activities
in a covered African country for which the Secretary of Defense makes a
determination described in subsection (b), the Secretary may conduct a
procurement in which--
(1) competition is limited to products or services from the
host nation;
(2) a preference is provided for products or services from
the host nation; or
(3) a preference is provided for products or services from a
covered African country, other than the host nation.

(b) Determination.--
(1) In general.--A determination described in this
subsection is a determination by the Secretary of any of the
following:
(A) That the product or service concerned is to be
used only in support of covered activities.
(B) That it is in the national security interests of
the United States to limit competition or provide a
preference as described in subsection (a) because such
limitation or preference is necessary--
(i) to reduce overall United States
transportation costs and risks in shipping
products in support of operations, exercises,
theater security cooperation activities, and other
missions in the African region;
(ii) to reduce delivery times in support of
covered activities; or
(iii) to promote regional security and
stability in Africa.
(C) That the product or service is of equivalent
quality to a product or service that would have
otherwise been acquired without such limitation or
preference.
(2) Requirement for effectiveness of any particular
determination.--A determination under paragraph (1) shall not be
effective for purposes of a limitation or preference under
subsection (a) unless the Secretary also determines that--
(A) the limitation or preference will not adversely
affect--
(i) United States military operations or
stability operations in the African region; or
(ii) the United States industrial base; and
(B) in the case of air transportation, an air
carrier holding a certificate under section 41102 of
title 49, United

[[Page 2337]]

States Code, is not reasonably available to provide the
air transportation.

(c) Inapplicability of Authority to Procurement of Items on
Abilityone Procurement Catalog.--The authority under subsection (a) may
not be used for the procurement of any good that is contained in the
procurement list described in section 8503(a) of title 41, United States
Code, if such good can be produced and delivered by a qualified non
profit agency for the blind or a nonprofit agency for other severely
disabled in a timely fashion to support mission requirements.
(d) Report on Use of Authority.--Not later than December 31, 2017,
the Secretary shall submit to the congressional defense committees a
report on the use of the authority in subsection (a). The report shall
include, but not be limited to, the following:
(1) The number of determinations made by the Secretary
pursuant to subsection (b).
(2) A list of the countries providing products or services
as a result of determinations made pursuant to subsection (b).
(3) A description of the products and services acquired
using the authority.
(4) The extent to which the use of the authority has met the
one or more of the objectives specified in clause (i), (ii), or
(iii) of subsection (b)(1)(B).
(5) Such recommendations for improvements to the authority
as the Secretary considers appropriate.
(6) Such other matters as the Secretary considers
appropriate.

(e) Definitions.--In this section:
(1) Covered activities.--The term ``covered activities''
means Department of Defense activities in the African region or
a regional neighbor.
(2) Covered african country.--The term ``covered African
country'' means a country in Africa that has signed a long-term
agreement with the United States related to the basing or
operational needs of the United States Armed Forces.
(3) Host nation.--The term ``host nation'' means a nation
that allows the Armed Forces and supplies of the United States
to be located on, to operate in, or to be transported through
its territory.
(4) Product or service of a covered african country.--The
term ``product or service of a covered African country'' means
the following:
(A) A product from a covered African country that is
wholly grown, mined, manufactured, or produced in the
covered African country.
(B) A service from a covered African country that is
performed by a person or entity that--
(i) is properly licensed or registered by
appropriate authorities of the covered African
country; and
(ii) as determined by the Chief of Mission
concerned--
(I) is operating primarily in the
covered African country; or
(II) is making a significant
contribution to the economy of the
covered African country through payment
of taxes or use of products, materials,

[[Page 2338]]

or labor that are primarily grown,
mined, manufactured, produced, or
sourced from the covered African
country.

(f) Conforming Amendment.--Section 1263 of the National Defense
Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128 Stat.
3581) is repealed.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Office of the Secretary of Defense and Related Matters

Sec. 901. Organization of the Office of the Secretary of Defense.
Sec. 902. Responsibilities and reporting of the Chief Information
Officer of the Department of Defense.
Sec. 903. Maximum number of personnel in the Office of the Secretary of
Defense and other Department of Defense headquarters offices.
Sec. 904. Repeal of Financial Management Modernization Executive
Committee.

Subtitle B--Organization and Management of the Department of Defense
Generally

Sec. 911. Organizational strategy for the Department of Defense.
Sec. 912. Policy, organization, and management goals and priorities of
the Secretary of Defense for the Department of Defense.
Sec. 913. Secretary of Defense delivery unit.
Sec. 914. Performance of civilian functions by military personnel.
Sec. 915. Repeal of requirements relating to efficiencies plan for the
civilian personnel workforce and service contractor workforce
of the Department of Defense.

Subtitle C--Joint Chiefs of Staff and Combatant Command Matters

Sec. 921. Joint Chiefs of Staff and related combatant command matters.
Sec. 922. Organization of the Department of Defense for management of
special operations forces and special operations.
Sec. 923. Establishment of unified combatant command for cyber
operations.
Sec. 924. Assigned forces of the combatant commands.
Sec. 925. Modifications to the requirements process.
Sec. 926. Review of combatant command organization.

Subtitle D--Organization and Management of Other Department of Defense
Offices and Elements

Sec. 931. Qualifications for appointment of the Secretaries of the
military departments.
Sec. 932. Enhanced personnel management authorities for the Chief of the
National Guard Bureau.
Sec. 933. Reorganization and redesignation of Office of Family Policy
and Office of Community Support for Military Families with
Special Needs.
Sec. 934. Redesignation of Assistant Secretary of the Air Force for
Acquisition as Assistant Secretary of the Air Force for
Acquisition, Technology, and Logistics.

Subtitle E--Strategies, Reports, and Related Matters

Sec. 941. National defense strategy.
Sec. 942. Commission on the National Defense Strategy for the United
States.
Sec. 943. Reform of the national military strategy.
Sec. 944. Form of annual national security strategy report.
Sec. 945. Modification to independent study of national security
strategy formulation process.

Subtitle F--Other Matters

Sec. 951. Enhanced security programs for Department of Defense personnel
and innovation initiatives.
Sec. 952. Modification of authority of the Secretary of Defense relating
to protection of the Pentagon Reservation and other
Department of Defense facilities in the National Capital
Region.
Sec. 953. Modifications to requirements for accounting for members of
the Armed Forces and Department of Defense civilian employees
listed as missing.
Sec. 954. Modifications to corrosion report.

[[Page 2339]]

Subtitle A--Office of the Secretary of Defense and Related Matters

SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF DEFENSE.

(a) Under Secretary of Defense for Research and Engineering.--
(1) <>  In general.--Effective on
February 1, 2018, chapter 4 of title 10, United States Code, is
amended by striking section 133 and inserting the following new
section:
``Sec. 133a. <>  Under Secretary of Defense
for Research and Engineering

``(a) Under Secretary of Defense.--There is an Under Secretary of
Defense for Research and Engineering, appointed from civilian life by
the President, by and with the advice and consent of the Senate. The
Under Secretary shall be appointed from among persons who have an
extensive technology, science, or engineering background and experience
with managing complex or advanced technological programs. A person may
not be appointed as Under Secretary within seven years after relief from
active duty as a commissioned officer of a regular component of an armed
force.
``(b) Duties and Powers.--Subject to the authority, direction, and
control of the Secretary of Defense, the Under Secretary shall perform
such duties and exercise such powers as the Secretary may prescribe,
including--
``(1) serving as the chief technology officer of the
Department of Defense with the mission of advancing technology
and innovation for the armed forces (and the Department);
``(2) establishing policies on, and supervising, all defense
research and engineering, technology development, technology
transition, prototyping, experimentation, and developmental
testing activities and programs, including the allocation of
resources for defense research and engineering, and unifying
defense research and engineering efforts across the Department;
and
``(3) serving as the principal advisor to the Secretary on
all research, engineering, and technology development activities
and programs in the Department.

``(c) Precedence in Department of Defense.--
``(1) Precedence in matters of responsibility.--With regard
to all matters for which the Under Secretary has responsibility
by the direction of the Secretary of Defense or by law, the
Under Secretary takes precedence in the Department of Defense
after the Secretary and the Deputy Secretary of Defense.
``(2) Precedence in other matters.--With regard to all
matters other than the matters for which the Under Secretary has
responsibility by the direction of the Secretary or by law, the
Under Secretary takes precedence in the Department of Defense
after the Secretary, the Deputy Secretary, and the Secretaries
of the military departments.''.
(2) <>  Service of incumbent usd
for atl in position.--The individual serving as Under Secretary
of Defense for Acquisition, Technology, and Logistics under
section 133 of title 10, United States Code, as of February 1,
2018, may

[[Page 2340]]

continue to serve as Under Secretary of Defense for Research and
Engineering commencing as of that date, without further
appointment under section 133a of such title, as added by
paragraph (1).

(b) <>  Under Secretary of Defense for
Acquisition and Sustainment.--Effective on February 1, 2018, chapter 4
of title 10, United States Code, is further amended by inserting after
section 133a, as added by subsection (a), the following new section:
``Sec. 133b. <>  Under Secretary of Defense
for Acquisition and Sustainment

``(a) Under Secretary of Defense.--There is an Under Secretary of
Defense for Acquisition and Sustainment, appointed from civilian life by
the President, by and with the advice and consent of the Senate. The
Under Secretary shall be appointed from among persons who have an
extensive system development, engineering, production, or management
background and experience with managing complex programs. A person may
not be appointed as Under Secretary within seven years after relief from
active duty as a commissioned officer of a regular component of an armed
force.
``(b) Duties and Powers.--Subject to the authority, direction, and
control of the Secretary of Defense, the Under Secretary shall perform
such duties and exercise such powers as the Secretary may prescribe,
including--
``(1) serving as the chief acquisition and sustainment
officer of the Department of Defense with the mission of
delivering and sustaining timely, cost-effective capabilities
for the armed forces (and the Department);
``(2) establishing policies on, and supervising, all
elements of the Department relating to acquisition (including
system design, development, and production, and procurement of
goods and services) and sustainment (including logistics,
maintenance, and materiel readiness);
``(3) establishing policies for access to, and maintenance
of, the defense industrial base and materials critical to
national security, and policies on contract administration;
``(4) serving as--
``(A) the principal advisor to the Secretary on
acquisition and sustainment in the Department;
``(B) the senior procurement executive for the
Department for the purposes of section 1702(c) of title
41; and
``(C) the Defense Acquisition Executive for purposes
of regulations and procedures of the Department
providing for a Defense Acquisition Executive;
``(5) overseeing the modernization of nuclear forces and the
development of capabilities to counter weapons of mass
destruction, and serving as the chairman of the Nuclear Weapons
Council and the co-chairman of the Council on Oversight of the
National Leadership Command, Control, and Communications System;
``(6) the authority to direct the Secretaries of the
military departments and the heads of all other elements of the
Department with regard to matters for which the Under Secretary
has responsibility, except that the Under Secretary shall
exercise supervisory authority over service acquisition programs
for which the service acquisition executive is the milestone
decision authority; and

[[Page 2341]]

``(7) to the extent directed by the Secretary, exercising
overall supervision of all personnel (civilian and military) in
the Office of the Secretary of Defense with regard to matters
for which the Under Secretary has responsibility, unless
otherwise provided by law.

``(c) Precedence in Department of Defense.--
``(1) Precedence in matters of responsibility.--With regard
to all matters for which the Under Secretary has responsibility
by the direction of the Secretary of Defense or by law, the
Under Secretary takes precedence in the Department of Defense
after the Secretary, the Deputy Secretary of Defense, and the
Under Secretary of Defense for Research and Engineering.
``(2) Precedence in other matters.--With regard to all
matters other than the matters for which the Under Secretary has
responsibility by the direction of the Secretary or by law, the
Under Secretary takes precedence in the Department of Defense
after the Secretary, the Deputy Secretary, the Under Secretary
of Defense for Research and Engineering, and the Secretaries of
the military departments.''.

(c) <>  Chief Management Officer.--
(1) In general.--Effective on February 1, 2018, there is a
Chief Management Officer of the Department of Defense.
(2) Appointment.--The Chief Management Officer shall be
appointed from civilian life by the President, by and with the
advice and consent of the Senate. The Chief Management Officer
shall be appointed from among persons who have an extensive
management or business background and experience with managing
large or complex organizations. A person may not be appointed as
Chief Management Officer within seven years after relief from
active duty as a commissioned officer of a regular component of
an Armed Force.
(3) Duties and powers.--Subject to the authority, direction,
and control of the Secretary of Defense, the Chief Management
Officer shall perform such duties and exercise such powers as
the Secretary may prescribe, including--
(A) serving as the chief management officer of the
Department of Defense with the mission of managing the
business operations of the Department;
(B) establishing policies on, and supervising, all
business operations of the Department, including
business transformation, business planning and
processes, performance management, and business
information technology management and improvement
activities and programs, including the allocation of
resources for business operations, and unifying business
management efforts across the Department;
(C) serving as the principal advisor to the
Secretary on all business operations activities and
programs in the Department; and
(D) the authority to direct the Secretaries of the
military departments and the heads of all other elements
of the Department with regard to matters for which the
Chief Management Officer has responsibility.
(4) Conforming amendments.--Effective on February 1, 2018,
section 132 of title 10, United States Code, is amended--
(A) by striking subsection (c); and

[[Page 2342]]

(B) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.

(d) Repeal of Pending Authority To Establish Under Secretary of
Defense for Business Management and Information.--Subsection (a) of
section 901 of the Carl Levin and Howard P. ``Buck'' McKeon National
Defense Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128
Stat. 3462) is repealed.
(e) Repeal of Certain ASD and Director Positions.--Chapter 4 of
title 10, United States Code, is further amended--
(1) in section 138(b)--
(A) by striking paragraphs (6), (7), (8), and (9);
and
(B) by redesignating paragraph (10) as paragraph
(6); and
(2) by striking sections 139b and 139c.

(f) <>  Office of the Secretary of
Defense.--Effective on February 1, 2018, section 131(b)(2) of title 10,
United States Code, is amended--
(1) by redesignating subparagraphs (B) through (E) as
subparagraphs (C) through (F), respectively; and
(2) by striking subparagraph (A) and inserting the following
new subparagraphs:
``(A) The Under Secretary of Defense for Research
and Engineering.
``(B) The Under Secretary of Defense for Acquisition
and Sustainment.''.

(g) Table of Section Amendments.--
(1) Table of sections effective on enactment.--The table of
sections at the beginning of chapter 4 of title 10, United
States Code, is <> amended by striking
the items relating to sections 139b and 139c.
(2) Table of sections effective on delayed effective date.--
Effective on February 1, 2018, the table of sections at the
beginning of chapter 4 of such title <> is further amended by striking the item relating to
section 133 and inserting the following new items:

``133a. Under Secretary of Defense for Research and Engineering.
``133b. Under Secretary of Defense for Acquisition and Sustainment.''.

(h) <>  Executive Schedule Level II.--
Effective on February 1, 2018, section 5313 of title 5, United States
Code, is amended by striking the item relating to the Under Secretary of
Defense for Acquisition, Technology, and Logistics and inserting the
following new items:
``Under Secretary of Defense for Research and Engineering.
``Under Secretary of Defense for Acquisition and
Sustainment.''.

(i) Review Required.--
(1) In general.--The Secretary of Defense shall conduct a
review and identify a recommended organizational and management
structure for the Department of Defense that implements the
organizational policy guidance expressed in this section and the
amendments made by this section.
(2) Elements.--The review and recommendations shall address,
but not be limited to, the following:

[[Page 2343]]

(A) The organizational and management structure of
the Department including the disposition of leadership
positions, subordinate organizations, and defined
relationships across such leadership positions and
organizations.
(B) The recommended disposition within the Office of
the Secretary of Defense of the various Assistant
Secretaries of Defense, Deputy Assistant Secretaries of
Defense, and Directors affected by the organizational
policy guidance.
(C) The specific delineation of roles,
responsibilities, and authorities, as directed by the
Secretary, for the organizational and management
structure covered by subparagraph (A).

(j) Reports.--
(1) Interim report.--Not later than March 1, 2017, the
Secretary of Defense shall submit to the congressional defense
committees an interim report on the review and recommended
organizational and management structure for the Department of
Defense as required by subsection (i).
(2) Final report.--Not later than August 1, 2017, the
Secretary shall submit to the congressional defense committees a
final report on the review and recommended organizational and
management structure, including--
(A) a proposed implementation plan for how the
Department would implement its recommendations;
(B) recommendations for revisions to appointments
and qualifications, duties and powers, and precedent in
the Department;
(C) recommendations for such legislative and
administrative action, including conforming and other
amendments to law, as the Secretary considers
appropriate to implement the plan; and
(D) any other matters that the Secretary considers
appropriate.
SEC. 902. RESPONSIBILITIES AND REPORTING OF THE CHIEF INFORMATION
OFFICER OF THE DEPARTMENT OF DEFENSE.

(a) In General.--Section 142(b)(1) of title 10, United States Code,
is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new subparagraphs:
``(E) exercises authority, direction, and control over the
Defense Information Systems Agency, or any successor
organization;
``(F) has the responsibilities for policy, oversight,
guidance, and coordination for all Department of Defense matters
related to electromagnetic spectrum, including coordination with
other Federal and industry agencies, coordination for classified
programs, and in coordination with the Under Secretary for
Personnel and Readiness, policies related to spectrum management
workforce;
``(G) has the responsibilities for policy, oversight,
guidance, and coordination for nuclear command and control
systems;

[[Page 2344]]

``(H) has the responsibilities for policy, oversight, and
guidance for matters related to precision navigation and timing;
and
``(I) has the responsibilities for policy, oversight, and
guidance for the architecture and programs related to the
networking and cyber defense architecture of the Department.''.

(b) Direct Reporting.--Section 151(b)(5) of such title is amended by
inserting before the period at the end the following: ``, who reports
directly to the Secretary and Deputy Secretary without intervening
authority''.
SEC. 903. MAXIMUM NUMBER OF PERSONNEL IN THE OFFICE OF THE
SECRETARY OF DEFENSE AND OTHER DEPARTMENT
OF DEFENSE HEADQUARTERS OFFICES.

(a) Office of the Secretary of Defense.--Section 143(b) of title 10,
United States Code, is amended by striking ``and civilian personnel''
and inserting ``, civilian, and detailed personnel''.
(b) Joint Staff.--
(1) In general.--Section 155 of such title is amended by
adding at the end the following new subsection:

``(h) Personnel Limitations.--(1) The total number of members of the
armed forces and civilian employees assigned or detailed to permanent
duty for the Joint Staff may not exceed 2,069.
``(2) Not more than 1,500 members of the armed forces on the active-
duty list may be assigned or detailed to permanent duty for the Joint
Staff.
``(3) The limitations in paragraphs (1) and (2) do not apply in time
of war.
``(4) Each limitation in paragraphs (1) and (2) may be exceeded by a
number equal to 15 percent of such limitation in time of national
emergency.''.
(2) <>  Effective date.--The
amendment made by paragraph (1) shall take effect on December
31, 2019.

(c) Office of the Secretary of the Army.--Section 3014(f) of such
title is amended--
(1) in paragraph (4), by striking ``time of war'' and all
that follows and inserting ``time of war.''; and
(2) by adding at the end the following new paragraph:

``(5) Each limitation in paragraphs (1) and (2) may be exceeded by a
number equal to 15 percent of such limitation in time of national
emergency.''.
(d) Office of the Secretary of the Navy.--Section 5014(f) of such
title is amended--
(1) in paragraph (4), by striking ``time of war'' and all
that follows and inserting ``time of war.''; and
(2) by adding at the end the following new paragraph:

``(5) Each limitation in paragraphs (1) and (2) may be exceeded by a
number equal to 15 percent of such limitation in time of national
emergency.''.
(e) Office of the Secretary of the Air Force.--Section 8014(f) of
such title is amended--
(1) in paragraph (4), by striking ``time of war'' and all
that follows and inserting ``time of war.''; and
(2) by adding at the end the following new paragraph:

``(5) Each limitation in paragraphs (1) and (2) may be exceeded by a
number equal to 15 percent of such limitation in time of national
emergency.''.

[[Page 2345]]

SEC. 904. REPEAL OF FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE
COMMITTEE.

(a) Repeal.--Section 185 of title 10, United States Code, is
repealed.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 7 of such title <> is amended by
striking the item relating to section 185.

Subtitle B--Organization and Management of the Department of Defense
Generally

SEC. 911. <>  ORGANIZATIONAL STRATEGY FOR
THE DEPARTMENT OF DEFENSE.

(a) Organizational Strategy Required.--
(1) In general.--Not later than September 1, 2017, the
Secretary of Defense shall formulate and issue to the Department
of Defense an organizational strategy for the Department that--
(A) identifies the critical objectives and other
organizational outputs for the Department that span
multiple functional boundaries and would benefit from
the use of cross-functional teams under this section to
ensure collaboration and integration across
organizations within the Department;
(B) improves the manner in which the Department
integrates the expertise and capacities of the
functional components of the Department for effective
and efficient achievement of such objectives and
outputs;
(C) improves the management of relationships and
processes involving the Office of the Secretary of
Defense, the Joint Staff, the combatant commands, the
military departments, and the Defense Agencies with
regard to such objectives and outputs;
(D) improves the ability of the Department to work
effectively in interagency processes with regard to such
objectives and outputs in order to better serve the
President; and
(E) achieves an organizational structure that
enhances performance with regard to such objectives and
outputs.
(2) Elements.--The strategy shall provide for the following:
(A) The appropriate use of cross-functional teams to
manage critical objectives and outputs of the Department
described in paragraph (1)(A).
(B) The furtherance and advancement of a
collaborative, team-oriented, results-driven, and
innovative culture within the Department that fosters an
open debate of ideas and alternative courses of action,
and supports cross-functional teaming and integration.

(b) Actions in Support of Strategy.--
(1) Study.--The Department of Defense shall conduct a study
of the following in order to determine how best to implement
effective cross-functional teams in the Department to achieve
the strategic objectives of the Secretary of Defense:

[[Page 2346]]

(A) Lessons learned, as reflected in academic
literature, business and management school case studies,
and the work of leading management consultant firms, on
the successful and failed application of cross-
functional teams in the private sector and government,
and on the cultural factors necessary to support
effective cross-functional teams.
(B) The historical and current use by the Department
of cross-functional working groups, integrated process
teams, councils, and committees, and the reasons why
such entities have or have not achieved high levels of
teamwork or effectiveness.
(2) Conduct of study.--The study required by paragraph (1)
shall be conducted by an independent organization with widely
acknowledged expertise in modern organizational management and
teaming selected by the Secretary for purposes of the study.
(3) Schedule.--The Secretary shall award any necessary
contract for the study required by paragraph (1) pursuant to
paragraph (2) by not later than March 15, 2017, and shall
provide the results of the study to the congressional defense
committees by not later than July 15, 2017.

(c) Cross-functional Teams.--In support of the strategy required by
subsection (a):
(1) In general.--The Secretary of Defense shall establish
cross-functional teams to address critical objectives and
outputs for such teams as are determined to be appropriate in
accordance with the organizational strategy issued under
subsection (a), with initial teams established by not later than
September 30, 2017.
(2) Purposes.--The purposes of cross-functional teams
established pursuant to this subsection shall be, as determined
appropriate by the Secretary--
(A) to provide for effective collaboration and
integration across organizational and functional
boundaries in the Department of Defense;
(B) to develop, at the direction of the Secretary,
recommendations for comprehensive and fully integrated
policies, strategies, plans, and resourcing decisions;
(C) to make decisions on cross-functional issues, to
the extent authorized by the Secretary and within
parameters established by the Secretary; and
(D) to provide oversight for and, as directed by the
Secretary, supervise the implementation of approved
policies, strategies, plans, and resourcing decisions
approved by the Secretary.
(3) Guidance on teams.--Not later than September 30, 2017,
the Secretary shall issue guidance--
(A) addressing the role, authorities, reporting
relationships, resourcing, manning, training, and
operations of cross-functional teams established
pursuant to this subsection;
(B) delineating decision-making authority of such
teams;
(C) providing that the leaders of functional
components of the Department that provide personnel to
such teams respect and respond to team needs and
activities; and

[[Page 2347]]

(D) emphasizing that personnel selected for
assignment to such teams shall faithfully represent the
views and expertise of their functional components while
contributing to the best of their ability to the success
of the team concerned.
(4) Participants.--In establishing a cross-functional team
pursuant to this subsection, the Secretary shall consider
personnel from the Office of the Secretary of Defense, the Joint
Staff, the military departments, and the Defense Agencies in all
functional areas that the Secretary considers appropriate.
(5) Team personnel.--For each cross-functional team
established by the Secretary pursuant to this subsection, the
Secretary shall--
(A) assign as leader of such team a senior qualified
and experienced individual, who shall report directly to
the Secretary regarding the activities of such team;
(B) delegate to the team leader designated pursuant
to subparagraph (A) authority to select members of such
team from among civilian employees of the Department and
members of the Armed Forces in any grade who are
recommended for membership on such team by the head of a
functional component of the Department within the Office
of the Secretary of Defense, the Joint Staff, and the
military departments, by the commander of a combatant
command, or by the director of a Defense Agency;
(C) provide the team leader with necessary full time
support from team members, and the means to co-locate
team members;
(D) ensure that team members and all leaders in
functional organizations that are in the supervisory
chain for personnel serving on such team receive
training in elements of successful cross-functional
teams, including teamwork, collaboration, conflict
resolution, and appropriately representing the views and
expertise of their functional components; and
(E) ensure that the congressional defense committees
are provided information on the progress and results of
such team upon request.
(6) Team strategies and decision-making authority.--
(A) In general.--The Secretary shall ensure that the
objectives of each cross-functional team established
pursuant to this subsection are clearly established in
writing, through a memorandum, statement, charter, or
similar document.
(B) Metrics.--To improve team performance and
accountability, the Secretary shall task each team, as
appropriate, to establish a strategy to achieve the
objectives specified by the Secretary, metrics for
evaluation of the achievement of such objectives by such
team, and the alignment of individual and team goals for
the achievement of such objectives by such team.
(C) Delegation of authority.--The Secretary may
delegate to a team any decision-making authority that,
and shall delegate such authority as, the Secretary
considers appropriate to permit such team to achieve the
objectives established by the Secretary.

[[Page 2348]]

(7) Review of teams.--Not later than 18 months after the
date on which the first cross-functional team is established
pursuant to this subsection, the Secretary shall complete an
analysis, with support from external experts in organizational
and management sciences, of the successes and failures of teams
established pursuant to this subsection, and determine how to
apply the lessons learned from that analysis.
(8) Report on establishment.--Not later than 18 months after
the date of the enactment of this Act, the Secretary shall
submit to Congress a report on the establishment of cross-
functional teams under this subsection, including descriptions
from the leaders of teams established prior to the date on which
this report is submitted of the manner in which the teams were
designed and how they functioned.

(d) Directive on Collaborative Culture and Behavior.--The guidance
issued by the Secretary of Defense pursuant to subsection (c)(3) shall
also--
(1) articulate the shared purposes, values, and principles
for the operation of the Office of the Secretary of Defense that
are required to promote a team-oriented, collaborative, results-
driven culture within the Office to support the primary
objectives of the Department of Defense;
(2) ensure that collaboration across functional and
organizational boundaries is an important factor in the
performance review of leaders of cross-functional teams
established pursuant to subsection (c), members of teams, and
other appropriate leaders of the Department; and
(3) identify key practices that senior leaders of the
Department should follow with regard to leadership,
organizational practice, collaboration, and the functioning of
cross-functional teams, and the types of personnel behavior that
senior leaders should encourage and discourage.

(e) Streamlining of Organizational Structure and Processes of OSD.--
Not later than 18 months after the date of the enactment of this Act,
the Secretary of Defense shall take such actions as the Secretary
considers appropriate to streamline the organizational structure and
processes of the Office of the Secretary of Defense in order to increase
spans of control, achieve a reduction in layers of management, eliminate
unnecessary duplication between the Office and the Joint Staff, and
reduce the time required to complete standard processes and activities.
(f) Training for Individuals Nominated for Appointment for OSD
Positions Confirmed by the Senate.--
(1) In general.--Within three months of the appointment of
an individual to a position in the Office of the Secretary of
Defense appointable by and with the advice and consent of the
Senate, the individual shall complete a course of instruction in
leadership, modern organizational practice, collaboration, and
the operation of teams described in subsection (c).
(2) Waiver.--The President may waive the requirement in
paragraph (1) with respect to an individual if the Secretary
determines in writing that the individual possesses, through
training and experience, the skill and knowledge otherwise to be
provided through a course of instruction as described in that
paragraph.

(g) Comptroller General of the United States Assessments.--

[[Page 2349]]

(1) Biannual report on assessments.--Not later than six
months after the date of the enactment of this Act, and every
six months thereafter through December 31, 2019, the Comptroller
General of the United States shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report setting forth a comprehensive assessment of the actions
taken under this section during the six-month period ending on
the date of such report and cumulatively since the date of the
enactment of this Act.
(2) Assessment team.--The Comptroller General may establish
within the Government Accountability Office a team of analysts
to assist the Comptroller General in the performance assessments
required by this subsection.
SEC. 912. POLICY, ORGANIZATION, AND MANAGEMENT GOALS AND
PRIORITIES OF THE SECRETARY OF DEFENSE FOR
THE DEPARTMENT OF DEFENSE.

(a) In General.--A Secretary of Defense serving in that position
pursuant to an appointment to that position after January 20, 2017,
shall submit to the Committees on Armed Services of the Senate and the
House of Representatives, not later than each of the deadlines specified
in subsection (b), a report on the policy, organization, and management
goals and priorities of the Secretary for the Department of Defense.
Each report shall include, current as of the date of such report, an
identification of the following:
(1) Policy goals and priorities, including specific and
measurable performance and implementation targets.
(2) Organization and management goals and priorities,
including specific and measurable performance and implementation
targets that address, but are not limited to, the following:
(A) The elimination or consolidation of any
unnecessary or redundant functions within the
Department.
(B) Force management and shaping, including
recommendations for such legislative action as is
required to meet force management and shaping goals and
priorities.
(C) The delayering or reorganization of headquarters
organizations across the Department.
(3) Any other goals or priorities for the Department the
Secretary considers appropriate.

(b) Deadlines.--The deadlines for the submittal of reports under
subsection (a) are April 1, 2017, and February 1 of each year thereafter
though 2022.
(c) Briefings Satisfy Later Reporting Requirements.--Any report
required under subsection (a) after the initial report may be provided
in the form of a briefing.
SEC. 913. <>  SECRETARY OF DEFENSE
DELIVERY UNIT.

(a) In General.--The Secretary of Defense serving in that position
as of March 1, 2017, may establish within the Office of the Secretary of
Defense a unit of personnel that shall be responsible for providing
expertise and support throughout the Department of Defense in an effort
to improve the implementation of policies and priorities across the
Department. The unit may be known as the ``delivery unit''.
(b) Composition.--The unit established pursuant to subsection (a)
shall consist of not more than 30 individuals selected by the

[[Page 2350]]

Secretary primarily from among individuals outside the Government who
have significant experience and expertise in management consulting,
organizational architecture, relationship management, or data analytics.
(c) Duties.--The unit established pursuant to subsection (a) shall
have the duties as follows:
(1) To advise the Secretary on improving the implementation
and delivery of policies and priorities of the Department,
including making recommendations on establishing performance or
implementation targets, assisting in the development of delivery
plans to achieve targets, and monitoring and measuring progress.
(2) To work across organizations, missions, and functions of
the Department in order to identify obstacles to improving the
implementation of policies and priorities of the Department,
including organization, culture, and incentives, and to
recommend options to the Secretary for addressing such
obstacles.

(d) Sunset.--The unit established pursuant to subsection (a) shall
sunset on January 31, 2021.
SEC. 914. PERFORMANCE OF CIVILIAN FUNCTIONS BY MILITARY PERSONNEL.

Section 129a of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(g) Performance of Civilian Functions by Military Personnel.--(1)
Functions performed by civilian personnel should not be performed by
military personnel except--
``(A) if the Secretary of the military department concerned
determines in writing based on mission requirements that the
performance of such functions by military personnel, including a
permanent conversion of such functions to performance by
military personnel, is cost-effective or required by a mission;
or
``(B) if the performance of such functions by military
personnel is required to address critical staffing needs
resulting from a reduction in personnel or budgetary resources
by reason of an Act of Congress, in which case such functions
may not be performed by military personnel for a period in
excess of one year.

``(2) In determining the workforce mix between civilian and military
personnel, the Secretary of a military department shall reserve military
personnel for the performance of the functions that, in the estimation
of the Secretary, are required to be performed by military personnel in
order to achieve national defense goals or in order to enable the proper
functioning of the military department. In making workforce decisions,
the Secretary shall account for the relative budgetary impact of
military versus civilian personnel in determining the functions required
to be performed by military personnel.''.
SEC. 915. REPEAL OF REQUIREMENTS RELATING TO EFFICIENCIES PLAN FOR
THE CIVILIAN PERSONNEL WORKFORCE AND
SERVICE CONTRACTOR WORKFORCE OF THE
DEPARTMENT OF DEFENSE.

Section 955 of the National Defense Authorization Act for Fiscal
Year 2013 (Public Law 112-239; 126 Stat. 1896; 10 U.S.C. 129a note) is
repealed.

[[Page 2351]]

Subtitle C--Joint Chiefs of Staff and Combatant Command Matters

SEC. 921. JOINT CHIEFS OF STAFF AND RELATED COMBATANT COMMAND
MATTERS.

(a) Functions of Joint Chiefs of Staff.--
(1) Consultation by chairman.--Subsection (c)(1) of section
151 of title 10, United States Code, is amended by striking ``as
he considers appropriate'' and inserting ``as necessary''.
(2) Modification of advice and opinions of members other
than chairman.--Such section is further amended--
(A) in subsection (b)(2), by striking ``subsections
(d) and (e)'' and inserting ``subsection (d)'';
(B) in subsection (d)--
(i) by redesignating paragraphs (1) and (2) as
paragraphs (2) and (3), respectively; and
(ii) by inserting before paragraph (1), as
redesignated by clause (i), the following new
paragraph (1):

``(1) After first informing the Secretary of Defense and the
Chairman, the members of the Joint Chiefs of Staff, individually or
collectively, in their capacity as military advisors, may provide advice
to the President, the National Security Council, the Homeland Security
Council, or the Secretary of Defense on a particular matter on the
judgment of the military member.''; and
(C) by striking subsection (e).

(b) Term and Reappointment of Chairman of the Joint Chiefs of
Staff.--
(1) In general.--Section 152(a) of title 10, United States
Code, is amended--
(A) in paragraph (1), by striking ``two years,
beginning on October 1 of odd-numbered years'' and all
that follows and inserting ``four years, beginning on
October 1 of an odd-numbered year. The limitation does
not apply in time of war.''; and
(B) by striking paragraph (3) and inserting the
following new paragraph (3):

``(3) The President may extend to eight years the combined period of
service of an officer as Chairman and Vice Chairman if the President
determines that such action is in the national interest. The limitation
in this paragraph does not apply in time of war.''.
(2) <>  Effective date.--The
amendments made by paragraph (1) shall take effect on January 1,
2019, and shall apply to individuals appointed as Chairman of
the Joint Chiefs of Staff on or after that date.

(c) Functions of Chairman of Joint Chiefs of Staff.--The text of
section 153 of title 10, United States Code, is amended to read as
follows:
``Subject to the authority, direction, and control of the President
and the Secretary of Defense, the Chairman of the Joint Chiefs of Staff
shall be responsible for the following
``(1) Strategic direction.--Assisting the President and the
Secretary in providing for the strategic direction of the armed
forces.
``(2) Strategic and contingency planning.--In matters
relating to strategic and contingency planning--

[[Page 2352]]

``(A) developing strategic frameworks and preparing
strategic plans, as required, to guide the use and
employment of military force and related activities
across all geographic regions and military functions and
domains, and to sustain military efforts over different
durations of time, as necessary;
``(B) advising the Secretary on the production of
the national defense strategy required by section 113(g)
of this title and the national security strategy
required by section 108 of the National Security Act of
1947 (50 U.S.C. 3043);
``(C) preparing military analysis, options, and
plans, as the Chairman considers appropriate, to
recommend to the President and the Secretary;
``(D) providing for the preparation and review of
contingency plans which conform to policy guidance from
the President and the Secretary; and
``(E) preparing joint logistic and mobility plans to
support national defense strategies and recommending the
assignment of responsibilities to the armed forces in
accordance with such plans.
``(3) Global military integration.--In matters relating to
global military strategic and operational integration--
``(A) providing advice to the President and the
Secretary on ongoing military operations; and
``(B) advising the Secretary on the allocation and
transfer of forces among geographic and functional
combatant commands, as necessary, to address
transregional, multi-domain, and multifunctional
threats.
``(4) Comprehensive joint readiness.--In matters relating to
comprehensive joint readiness--
``(A) evaluating the overall preparedness of the
joint force to perform the responsibilities of that
force under national defense strategies and to respond
to significant contingencies worldwide;
``(B) assessing the risks to United States missions,
strategies, and military personnel that stem from
shortfalls in military readiness across the armed
forces, and developing risk mitigation options;
``(C) advising the Secretary on critical
deficiencies and strengths in joint force capabilities
(including manpower, logistics, and mobility support)
identified during the preparation and review of national
defense strategies and contingency plans and assessing
the effect of such deficiencies and strengths on meeting
national security objectives and policy and on strategic
plans;
``(D) advising the Secretary on the missions and
functions that are likely to require contractor or other
external support to meet national security objectives
and policy and strategy, and the risks associated with
such support; and
``(E) establishing and maintaining, after
consultation with the commanders of the unified and
specified combatant commands, a uniform system of
evaluating the preparedness of each such command, and
groups of commands collectively, to carry out missions
assigned to the command or commands.

[[Page 2353]]

``(5) Joint capability development.--In matters relating to
joint capability development--
``(A) identifying new joint military capabilities
based on advances in technology and concepts of
operation needed to maintain the technological and
operational superiority of the armed forces, and
recommending investments and experiments in such
capabilities to the Secretary;
``(B) performing military net assessments of the
joint capabilities of the armed forces of the United
States and its allies in comparison with the
capabilities of potential adversaries;
``(C) advising the Secretary under section 163(b)(2)
of this title on the priorities of the requirements
identified by the commanders of the unified and
specified combatant commands;
``(D) advising the Secretary on the extent to which
the program recommendations and budget proposals of the
military departments and other components of the
Department of Defense for a fiscal year conform with the
priorities established in national defense strategies
and with the priorities established for the requirements
of the unified and specified combatant commands;
``(E) advising the Secretary on new and alternative
joint military capabilities, and alternative program
recommendations and budget proposals, within projected
resource levels and guidance provided by the Secretary,
in order to achieve greater conformance with the
priorities referred to in subparagraph (D);
``(F) assessing joint military capabilities and
identifying, approving, and prioritizing gaps in such
capabilities to meet national defense strategies,
pursuant to section 181 of this title; and
``(G) recommending to the Secretary appropriate
trade-offs among life-cycle cost, schedule, performance,
and procurement quantity objectives in the acquisition
of materiel and equipment to support the strategic and
contingency plans required by this paragraph in the most
effective and efficient manner.
``(6) Joint force development activities.--In matters
relating to joint force development activities--
``(A) developing doctrine for the joint employment
of the armed forces;
``(B) formulating policies and technical standards,
and executing actions, for the joint training of the
armed forces;
``(C) formulating policies for coordinating the
military education of members of the armed forces;
``(D) formulating policies for concept development
and experimentation for the joint employment of the
armed forces;
``(E) formulating policies for gathering,
developing, and disseminating joint lessons learned for
the armed forces; and
``(F) advising the Secretary on development of joint
command, control, communications, and cybercapability,
including integration and interoperability of such
capability, through requirements, integrated
architectures, data standards, and assessments.

[[Page 2354]]

``(7) Other matters.--In other matters--
``(A) recommending to the Secretary, in accordance
with section 166 of this title, a budget proposal for
activities of each unified and specified combatant
command;
``(B) providing for representation of the United
States on the Military Staff Committee of the United
Nations in accordance with the Charter of the United
Nations; and
``(C) performing such other duties as may be
prescribed by law or by the President or the
Secretary.''.

(d) Vice Chairman of the Joint Chiefs of Staff Matters.--
(1) Term of service.--Paragraph (3) of section 154(a) of
title 10, United States Code, is amended by striking ``for a
term of two years'' and all that follows and inserting ``for a
single term of four years, beginning on October 1 of an odd-
numbered year, except that the term may not begin in the same
year as the term of a Chairman. In time of war, there is no
limit on the number of reappointments.''.
(2) Ineligibility for service as chairman or any other
position in the armed forces.--Such section is further amended
by adding at the end the following new paragraph:

``(4)(A) The Vice Chairman shall not be eligible for promotion to
the position of Chairman or any other position in the armed forces.
``(B) The President may waive subparagraph (A) if the President
determines such action is necessary in the national interest.''.
(3) <>  Effective date.--The
amendments made by this subsection shall take effect on January
1, 2021, and shall apply to individuals appointed as Vice
Chairman of the Joint Chiefs of Staff on or after that date.

(e) Commanders of the Combatant Commands.--Section 164 of title 10,
United States Code, is amended--
(1) in subsection (b), by adding at the end the following
new paragraph:

``(3) Among the full range of command responsibilities specified in
subsection (c) and as provided for in section 161 of this title, the
primary duties of the commander of a combatant command shall be as
follows:
``(A) To produce plans for the employment of the armed
forces to execute national defense strategies and respond to
significant military contingencies.
``(B) To take actions, as necessary, to deter conflict.
``(C) To command United States armed forces as directed by
the Secretary and approved by the President.''; and
(2) by adding at the end the following new subsection:

``(h) Support to Chairman of the Joint Chiefs of Staff.--The
commander of a combatant command shall provide such information to the
Chairman of the Joint Chiefs of Staff as may be necessary for the
Chairman to perform the duties of the Chairman under section 153 of this
title.''.
SEC. 922. ORGANIZATION OF THE DEPARTMENT OF DEFENSE FOR MANAGEMENT
OF SPECIAL OPERATIONS FORCES AND SPECIAL
OPERATIONS.

(a) Responsibility of Assistant Secretary of Defense for Special
Operations and Low Intensity Conflict.--Section 138(b)(4) of title 10,
United States Code, is amended by adding

[[Page 2355]]

at the end the following new sentence: ``Subject to the authority,
direction, and control of the Secretary of Defense, the Assistant
Secretary shall do the following:
``(A) Exercise authority, direction, and control of all
special-operations peculiar administrative matters relating to
the organization, training, and equipping of special operations
forces.
``(B) Assist the Secretary and the Under Secretary of
Defense for Policy in the development and supervision of policy,
program planning and execution, and allocation and use of
resources for the activities of the Department of Defense for
the following:
``(i) Irregular warfare, combating terrorism, and
the special operations activities specified by section
167(k) of this title.
``(ii) Integrating the functional activities of the
headquarters of the Department to most efficiently and
effectively provide for required special operations
forces and capabilities.
``(iii) Such other matters as may be specified by
the Secretary and the Under Secretary.''.

(b) Special Operations Policy and Oversight Council.--
(1) In general.--Chapter 4 of title 10, United States Code,
as amended by section 901(e)(2) of this Act, is further amended
by inserting after section 139a the following new section:
``Sec. 139b. <>  Special Operations Policy and
Oversight Council

``(a) In General.--In order to fulfill the responsibilities
specified in section 138(b)(4) of this title, the Assistant Secretary of
Defense for Special Operations and Low Intensity Conflict, or the
designee of the Assistant Secretary, shall establish and lead a team to
be known as the `Special Operations Policy and Oversight Council' (in
this section referred to as the `Council').
``(b) Purpose.--The purpose of the Council is to integrate the
functional activities of the headquarters of the Department of Defense
in order to most efficiently and effectively provide for special
operations forces and capabilities. In fulfilling this purpose, the
Council shall develop and continuously improve policy, joint processes,
and procedures that facilitate the development, acquisition,
integration, employment, and sustainment of special operations forces
and capabilities.
``(c) Membership.--The Council shall include the following:
``(1) The Assistant Secretary, who shall act as leader of
the Council.
``(2) Appropriate senior representatives of each of the
following:
``(A) The Under Secretary of Defense for Research
and Engineering.
``(B) The Under Secretary of Defense for Management
and Support.
``(C) The Under Secretary of Defense (Comptroller).
``(D) The Under Secretary of Defense for Personnel
and Readiness.
``(E) The Under Secretary of Defense for
Intelligence.
``(F) The General Counsel of the Department of
Defense.

[[Page 2356]]

``(G) The other Assistant Secretaries of Defense
under the Under Secretary of Defense for Policy.
``(H) The military departments.
``(I) The Joint Staff.
``(J) The United States Special Operations Command.
``(K) Such other officials or Agencies, elements, or
components of the Department of Defense as the Secretary
of Defense considers appropriate

``(d) Operation.--The Council shall operate continuously.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 4 of such title, as amended by section
901(g)(1) of this Act, <> is further
amended by inserting after the item relating to section 139a the
following new item:

``139b. Special Operations Policy and Oversight Council.''.

(c) US Special Operations Command Matters.--
(1) Authority of commander.--Subsection (e)(2) of section
167 of title 10, United States Code, is amended--
(A) in the matter preceding subparagraph (A), by
striking ``The commander'' and inserting ``Subject to
the authority, direction, and control of the Assistant
Secretary of Defense for Special Operations and Low
Intensity Conflict, the commander''; and
(B) by striking subparagraph (J) and inserting the
following new subparagraph (J):
``(J) Monitoring the promotions of special operations forces
and coordinating with the military departments regarding the
assignment, retention, training, professional military
education, and special and incentive pays of special operations
forces.''.
(2) Administrative chain of command.--Such section is
further amended--
(A) by redesignating subsections (f) through (k) as
subsections (g), through (l), respectively; and
(B) by inserting after subsection (e) the following
new subsection (f):

``(f) Administrative Chain of Command.--(1) Unless otherwise
directed by the President, the administrative chain of command to the
special operations command runs--
``(A) from the President to the Secretary of Defense;
``(B) from the Secretary of Defense to the Assistant
Secretary of Defense for Special Operations and Low Intensity
Conflict; and
``(C) from the Assistant Secretary of Defense for Special
Operations and Low Intensity Conflict to the commander of the
special operations command.

``(2) For purposes of this subsection, administrative chain of
command refers to the exercise of authority, direction and control with
respect to the special operations-peculiar administration and support of
the special operations command, including the readiness and organization
of special operations forces, resources and equipment, and civilian
personnel. It does not refer to the exercise of authority, direction,
and control of operational matters that are subject to the operational
chain of command of the commanders of combatant commands or the exercise
of authority, direction, and control of personnel, resources, equipment,
and other matters that are not special operations-peculiar that are the
purview of the armed forces.''.

[[Page 2357]]

SEC. 923. ESTABLISHMENT OF UNIFIED COMBATANT COMMAND FOR CYBER
OPERATIONS.

(a) Establishment of Cyber Command.--Chapter 6 of title 10, United
States Code, is amended by inserting after section 167a the following
new section:
``Sec. 167b. <>  Unified combatant command for
cyber operations

``(a) Establishment.--With the advice and assistance of the Chairman
of the Joint Chiefs of Staff, the President, through the Secretary of
Defense, shall establish under section 161 of this title a unified
combatant command for cyber operations forces (hereinafter in this
section referred to as the `cyber command'). The principal function of
the command is to prepare cyber operations forces to carry out assigned
missions.
``(b) Assignment of Forces.--Unless otherwise directed by the
Secretary of Defense, all active and reserve cyber operations forces of
the armed forces stationed in the United States shall be assigned to the
cyber command.
``(c) Grade of Commander.--The commander of the cyber command shall
hold the grade of general or, in the case of an officer of the Navy,
admiral while serving in that position, without vacating that officer's
permanent grade. The commander of such command shall be appointed to
that grade by the President, by and with the advice and consent of the
Senate, for service in that position.
``(d) Command of Activity or Mission.--(1) Unless otherwise directed
by the President or the Secretary of Defense, a cyber operations
activity or mission shall be conducted under the command of the
commander of the unified combatant command in whose geographic area the
activity or mission is to be conducted.
``(2) The commander of the cyber command shall exercise command of a
selected cyber operations mission if directed to do so by the President
or the Secretary of Defense.
``(e) Authority of Combatant Commander.--(1) In addition to the
authority prescribed in section 164(c) of this title, the commander of
the cyber command shall be responsible for, and shall have the authority
to conduct, all affairs of such command relating to cyber operations
activities.
``(2)(A) Subject to the authority, direction, and control of the
Principal Cyber Advisor, the commander of such command shall be
responsible for, and shall have the authority to conduct, the following
functions relating to cyber operations activities (whether or not
relating to the cyber command):
``(i) Developing strategy, doctrine, and tactics.
``(ii) Preparing and submitting to the Secretary of Defense
program recommendations and budget proposals for cyber
operations forces and for other forces assigned to the cyber
command.
``(iii) Exercising authority, direction, and control over
the expenditure of funds--
``(I) for forces assigned directly to the cyber
command; and
``(II) for cyber operations forces assigned to
unified combatant commands other than the cyber command,
with respect to all matters covered by section 807 of
the National Defense Authorization Act for Fiscal Year
2014 (Public Law 114-92; 129 Stat. 886; 10 U.S.C. 2224
note) and,

[[Page 2358]]

with respect to a matter not covered by such section, to
the extent directed by the Secretary of Defense.
``(iv) Training and certification of assigned joint forces.
``(v) Conducting specialized courses of instruction for
commissioned and noncommissioned officers.
``(vi) Validating requirements.
``(vii) Establishing priorities for requirements.
``(viii) Ensuring the interoperability of equipment and
forces.
``(ix) Formulating and submitting requirements for
intelligence support.
``(x) Monitoring the promotion of cyber operation forces and
coordinating with the military departments regarding the
assignment, retention, training, professional military
education, and special and incentive pays of cyber operation
forces.

``(B) The authority, direction, and control exercised by the
Principal Cyber Advisor for purposes of this section is authority,
direction, and control with respect to the administration and support of
the cyber command, including readiness and organization of cyber
operations forces, cyber operations-peculiar equipment and resources,
and civilian personnel.
``(C) Nothing in this section shall be construed as providing the
Principal Cyber Advisor authority, direction, and control of operational
matters that are subject to the operational chain of command of the
combatant commands or the exercise of authority, direction, and control
of personnel, resources, equipment, and other matters that are not
cyber-operations peculiar and that are in the purview of the armed
forces.
``(3) The commander of the cyber command shall be responsible for--
``(A) ensuring the combat readiness of forces assigned to
the cyber command; and
``(B) monitoring the preparedness to carry out assigned
missions of cyber forces assigned to unified combatant commands
other than the cyber command.
``(C) The staff of the commander shall include an inspector
general who shall conduct internal audits and inspections of
purchasing and contracting actions through the cyber operations
command and such other inspector general functions as may be
assigned.

``(f) Intelligence and Special Activities.--This section does not
constitute authority to conduct any activity which, if carried out as an
intelligence activity by the Department of Defense, would require a
notice to the Select Committee on Intelligence of the Senate and the
Permanent Select Committee on Intelligence of the House of
Representatives under title V of the National Security Act of 1947 (50
U.S.C. 3091 et seq.).''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 6 of such title <> is amended by
inserting after the item relating to section 167a the following new
item:

``167b. Unified combatant command for cyber operations.''.

SEC. 924. ASSIGNED FORCES OF THE COMBATANT COMMANDS.

Section 162(a) of title 10, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``Except as provided in paragraph
(2)'' and inserting ``As directed by the Secretary of
Defense'';

[[Page 2359]]

(B) by striking ``all forces'' and inserting
``specified forces''; and
(C) by striking the second sentence;
(2) by striking paragraph (2) and inserting the following
new paragraph (2):

``(2) A force not assigned to a combatant command or to the United
States element of the North American Aerospace Defense Command under
paragraph (1) shall remain assigned to the military department concerned
for carrying out the responsibilities of the Secretary of the military
department concerned as specified in section 3013, 5013, or 8013 of this
title, as applicable.''; and
(3) in paragraph (4)--
(A) by striking ``operating with the geographic
area'' and
(B) by striking ``assigned to, and''.
SEC. 925. MODIFICATIONS TO THE REQUIREMENTS PROCESS.

(a) In General.--The text of section 181 of title 10, United States
Code, is amended to read as follows:
``(a) In General.--There is a Joint Requirements Oversight Council
in the Department of Defense.
``(b) Mission.--In addition to other matters assigned to it by the
President or Secretary of Defense, the Joint Requirements Oversight
Council shall assist the Chairman of the Joint Chiefs of Staff in--
``(1) assessing joint military capabilities, and
identifying, approving, and prioritizing gaps in such
capabilities, to meet applicable requirements in the national
defense strategy under section 118 of this title;
``(2) reviewing and validating whether a capability proposed
by an armed force, Defense Agency, or other entity of the
Department of Defense fulfills a gap in joint military
capabilities;
``(3) developing recommendations, in consultation with the
advisors to the Council under subsection (d), for program cost
and fielding targets pursuant to section 2448a of this title
that--
``(A) require a level of resources that is
consistent with the level of priority assigned to the
associated capability gap; and
``(B) have an estimated period of time for the
delivery of an initial operational capability that is
consistent with the urgency of the associated capability
gap;
``(4) establishing and approving joint performance
requirements that--
``(A) ensure interoperability, where appropriate,
between and among joint military capabilities; and
``(B) are necessary, as designated by the Chairman
of the Joint Chiefs of Staff, to fulfill capability gaps
of more than one armed force, Defense Agency, or other
entity of the Department;
``(5) reviewing performance requirements for any existing or
proposed capability that the Chairman of the Joint Chiefs of
Staff determines should be reviewed by the Council;
``(6) identifying new joint military capabilities based on
advances in technology and concepts of operation; and

[[Page 2360]]

``(7) identifying alternatives to any acquisition program
that meets approved joint military capability requirements for
the purposes of sections 2366a(b), 2366b(a)(4), and 2433(e)(2)
of this title.

``(c) Composition.--
``(1) In general.--The Joint Requirements Oversight Council
is composed of the following:
``(A) The Vice Chairman of the Joint Chiefs of
Staff, who is the Chair of the Council and is the
principal adviser to the Chairman of the Joint Chiefs of
Staff for making recommendations about joint military
capabilities or joint performance requirements.
``(B) An Army officer in the grade of general.
``(C) A Navy officer in the grade of admiral.
``(D) An Air Force officer in the grade of general.
``(E) A Marine Corps officer in the grade of
general.
``(2) Selection of members.--Members of the Council under
subparagraphs (B), (C), (D), and (E) of paragraph (1) shall be
selected by the Chairman of the Joint Chiefs of Staff, after
consultation with the Secretary of Defense, from officers in the
grade of general or admiral, as the case may be, who are
recommended for selection by the Secretary of the military
department concerned.
``(3) Recommendations.--In making any recommendation to the
Chairman of the Joint Chiefs of Staff as described in paragraph
(1)(A), the Vice Chairman of the Joint Chiefs of Staff shall
provide the Chairman any dissenting view of members of the
Council under paragraph (1) with respect to such recommendation.

``(d) Advisors.--
``(1) In general.--The following officials of the Department
of Defense shall serve as advisors to the Joint Requirements
Oversight Council on matters within their authority and
expertise:
``(A) The Under Secretary of Defense for Policy.
``(B) The Under Secretary of Defense for
Intelligence.
``(C) The Under Secretary of Defense for
Acquisition, Technology, and Logistics.
``(D) The Under Secretary of Defense (Comptroller).
``(E) The Director of Cost Assessment and Program
Evaluation.
``(F) The Director of Operational Test and
Evaluation.
``(G) The commander of a combatant command when
matters related to the area of responsibility or
functions of that command are under consideration by the
Council.
``(2) Input from combatant commands.--The Council shall seek
and consider input from the commanders of the combatant commands
in carrying out its mission under paragraphs (1) and (2) of
subsection (b).
``(3) Input from chiefs of staff.--The Council shall seek,
and strongly consider, the views of the Chiefs of Staff of the
armed forces, in their roles as customers of the acquisition
system, on matters pertaining to a capability proposed by an
armed force, Defense Agency, or other entity of the Department
of Defense under subsection (b)(2) and joint performance
requirements pursuant to subsection (b)(3).

[[Page 2361]]

``(e) Performance Requirements as Responsibility of Armed Forces.--
The Chief of Staff of an armed force is responsible for all performance
requirements for that armed force and, except for performance
requirements specified in subsections (b)(4) and (b)(5), such
performance requirements do not need to be validated by the Joint
Requirements Oversight Council.
``(f) Analytic Support.--The Secretary of Defense shall ensure that
analytical organizations within the Department of Defense, such as the
Office of Cost Assessment and Program Evaluation, provide resources and
expertise in operations research, systems analysis, and cost estimation
to the Joint Requirements Oversight Council to assist the Council in
performing the mission in subsection (b).
``(g) Availability of Oversight Information to Congressional Defense
Committees.--The Secretary of Defense shall ensure that, in the case of
a recommendation by the Chairman of the Joint Chiefs of Staff to the
Secretary that is approved by the Secretary, oversight information with
respect to such recommendation that is produced as a result of the
activities of the Joint Requirements Oversight Council is made available
in a timely fashion to the congressional defense committees.
``(h) Definitions.--In this section:
``(1) The term `joint military capabilities' means the
collective capabilities across the joint force, including both
joint and force-specific capabilities, that are available to
conduct military operations.
``(2) The term `performance requirement' means a performance
attribute of a particular system considered critical or
essential to the development of an effective military
capability.
``(3) The term `joint performance requirement' means a
performance requirement that is critical or essential to ensure
interoperability or fulfill a capability gap of more than one
armed force, Defense Agency, or other entity of the Department
of Defense, or impacts the joint force in other ways such as
logistics.
``(4) The term `oversight information' means information and
materials comprising analysis and justification that are
prepared to support a recommendation that is made to, and
approved by, the Secretary of Defense.''.

(b) <