[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1597 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 1597
To reform the acquisition system of the Department of Defense, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 25, 2015
Mr. Thornberry (for himself and Mr. Smith of Washington) introduced the
following bill; which was referred to the Committee on Armed Services,
and in addition to the Committees on Small Business, Science, Space,
and Technology, and Oversight and Government Reform, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To reform the acquisition system of the Department of Defense, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Agile Acquisition to Retain
Technological Edge Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Sense of Congress on the desired tenets of the defense
acquisition system.
TITLE I--WORKFORCE DEVELOPMENT AND RELATED MATTERS
Sec. 101. Amendments to Department of Defense Acquisition Workforce
Development Fund.
Sec. 102. Dual-track military professionals in operational and
acquisition specialities.
Sec. 103. Provision of joint duty assignment credit for acquisition
duty.
Sec. 104. Requirement for acquisition skills assessment biennial
strategic workforce plan.
Sec. 105. Mandatory requirement for training related to the conduct of
market research.
Sec. 106. Independent study of implementation of defense acquisition
workforce improvement efforts.
TITLE II--WEAPON SYSTEMS ACQUISITION AND RELATED MATTERS
Sec. 201. Sense of Congress on the desired characteristics for the
weapon systems acquisition system.
Sec. 202. Revision to duties of the Deputy Assistant Secretary of
Defense for Developmental Test and
Evaluation and the Deputy Assistant
Secretary of Defense for Systems
Engineering.
Sec. 203. Acquisition strategy required for each major defense
acquisition program and major system.
Sec. 204. Revision to requirements relating to risk management in
development of major defense acquisition
programs and major systems.
Sec. 205. Modification to requirements relating to determination of
contract type for major defense acquisition
programs and major systems.
Sec. 206. Required determination before Milestone A approval or
initiation of major defense acquisition
programs.
Sec. 207. Required certification and determination before Milestone B
approval of major defense acquisition
programs.
TITLE III--SERVICES CONTRACTING AND RELATED MATTERS
Sec. 301. Examination and guidance relating to oversight and approval
of services contracts.
TITLE IV--INFORMATION TECHNOLOGY ACQUISITIONS AND RELATED MATTERS
Sec. 401. Streamlining of requirements relating to defense business
systems.
TITLE V--INDUSTRIAL BASE MATTERS
Sec. 501. Codification and amendment of Mentor-Protege Program.
Sec. 502. Amendments to data quality improvement plan.
Sec. 503. Notice of contract consolidation for acquisition strategies.
Sec. 504. Clarification of requirements related to small business
contracts for services.
Sec. 505. Review of Government access to intellectual property rights
of private sector firms.
Sec. 506. Modifications to the Small Business Innovative Research
Program and the Small Business Technology
Transfer Program.
Sec. 507. Extension of defense research and development rapid
innovation program.
TITLE VI--REPEAL OR REVISION OF REPORTING REQUIREMENTS
Sec. 601. Repeal of certain reporting requirements.
TITLE VII--PLANNING, BUDGETING, CONTRACTING, OVERSIGHT, AND OTHER
RELATED MATTERS
Sec. 701. Additional responsibility for Director of Operational Test
and Evaluation.
Sec. 702. Report on linking and streamlining requirements, acquisition,
and budget processes within Armed Forces.
Sec. 703. Required review of acquisition-related functions of the
Chiefs of Staff of the Armed Forces.
Sec. 704. FAR Council membership for Administrator of Small Business
Administration.
Sec. 705. Independent study of matters related to bid protests.
Sec. 706. Procurement of commercial items.
Sec. 707. Amendment relating to multiyear contract authority for
acquisition of property.
Sec. 708. Use of recent prices paid by the Government in the
determination of price reasonableness.
Sec. 709. Codification of other transaction authority for certain
prototype projects.
Sec. 710. Amendments to certain acquisition thresholds.
Sec. 711. Revision of method of rounding when making inflation
adjustment of acquisition-related dollar
thresholds.
Sec. 712. Repeal of requirement for stand-alone manpower estimates for
major defense acquisition programs.
SEC. 3. SENSE OF CONGRESS ON THE DESIRED TENETS OF THE DEFENSE
ACQUISITION SYSTEM.
(a) Findings.--Congress finds the following:
(1) The Committee on Armed Services of the House of
Representatives held a series of hearings in 2013, 2014, and
2015 gathering testimony from key acquisition leaders and
experts. It is clear that the acquisition reform efforts of the
last 50 years continue to founder because they fail to address
the motivational and environmental factors in which they must
be implemented. The acquisition system, though frustrating to
all, is in one sense in equilibrium. The acquisition system
provides enough benefits to proponents and opponents to
continue, with only minor changes, despite its shortcomings.
(2) The Department of Defense still has too many defense
acquisitions and services chasing too few dollars.
Consequently, there remains a vast difference between the
budgeting plans of the Department and the reality of the cost
of its systems or the services it acquires. To keep programs
alive, the Department develops and Congress accepts fragile
acquisition strategies that downplay technical issues and
assume only successful outcomes from high-risk efforts. As a
result, the Department often ends up with too few weapons, with
performance that falls short, that are difficult and costly to
maintain, delivered late at too high a cost. We have limited
insight into the services acquired or what services need to be
acquired in the future. Furthermore, the conventional
acquisition process is not agile enough for today's demands.
Finally, the Department of Defense continues to struggle with
financial management and auditability, affecting its ability to
control costs, ensure basic accountability, anticipate future
costs and claims on the budget, and measure performance.
(3) Too often today, all stakeholders in the Department of
Defense, Congress, and industry, accept that--
(A) for the acquisition process, success is defined
as maximizing technical performance or protecting
organizational interests, without regard to funding
disruptions and delivery delays of needed capability or
services to the warfighter; and
(B) the acquisition process is--
(i) reactive, meaning issues are addressed
late and at great cost only after problems are
realized;
(ii) plodding, meaning the bureaucratic
processes are sclerotic and cumbersome;
(iii) opaque, meaning that limiting
information is necessary to protect programs;
and
(iv) traditional, meaning that customary
approaches and suppliers are preferred over
perceived risk of new or unique concepts and
vendors.
(4) Today, the United States is at a cross-roads, and if
changes to the acquisition system are not made soon, the trend
of fewer and more costly systems and services that fall short
of the needs of the Armed Forces will continue. Congress, the
Department of Defense, contractors, and the American people all
have a stake in making positive changes. Each plays a role in
contributing to the current system. Each gains benefits from
that system, but each is frustrated by it as well.
(5) The acquisition improvement effort of the Committee on
Armed Services of the House of Representatives proposes a
different approach from previous efforts by seeking to improve
the environment (i.e., statutes, regulations, processes, and
culture) driving acquisition decisions in the Department of
Defense, industry, and Congress. The Committee has solicited
input from industry and the Department of Defense, as well as
others in Congress, and will continue to do so. The Committee
recognizes that there are no ``silver bullets'' that can
immediately fix the current acquisition system in a holistic
and long-standing manner. Therefore, the reform effort will be
an ongoing and iterative process that will result in
legislation not only this year, but will be embedded in the
Committee's annual and regular work.
(b) Sense of Congress on the Tenets of an Improved Acquisition
System.--It is the sense of Congress that all stakeholders in the
acquisition system--the Department of Defense, Congress, and industry--
should be governed by the following tenets:
(1) Success.--Success in the acquisition system means the
timely delivering of affordable and effective military
equipment and services.
(2) Proactive.--The acquisition system should be proactive,
meaning--
(A) the system should recognize that development
and acquisition problems can occur; and
(B) officials at all levels should be empowered to
solve problems and reduce risks by surfacing issues
early and honestly and taking action to resolve them.
(3) Agile.--The acquisition system should be agile, meaning
that needed program adjustments should be proposed and
adjudicated quickly.
(4) Transparent.--The acquisition system should be
transparent, meaning that--
(A) all decisionmakers should be given useful,
relevant, credible, and reliable information when
making commitments;
(B) Government and industry communication should be
clear and open; and
(C) the Department of Defense should produce
auditable financial management statements.
(5) Innovative.--The acquisition system should be
innovative, meaning that barriers should be removed that
preclude companies from undertaking defense business or
officials from proposing new approaches.
TITLE I--WORKFORCE DEVELOPMENT AND RELATED MATTERS
SEC. 101. AMENDMENTS TO DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE
DEVELOPMENT FUND.
(a) Permanent Extension of Fund.--Section 1705(d)(2) of title 10,
United States Code, is amended--
(1) in subparagraph (C), by striking ``of an amount as
follows:'' and all that follows through the end, and inserting
``of an amount of not less than $500,000,000.''; and
(2) in subparagraph (D), by striking ``an amount that is
less than'' and all that follows through the end, and inserting
``an amount that is less than $400,000,000''.
(b) Permanent Extension of Expedited Hiring Authority.--Section
1705(g) of such title is amended--
(1) by striking paragraph (2);
(2) by striking ``Authority.--'' and all that follows
through ``For purposes of'' in paragraph (1) and inserting
``Authority.--For purposes of'';
(3) by striking ``(A)'' and inserting ``(1)''; and
(4) by striking ``(B)'' and inserting ``(2)''.
(c) Clarification of Acquisition Workforce Covered.--Section
1705(g) of such title, as amended by subsection (c), is further amended
by striking ``acquisition workforce positions'' and inserting ``of
positions in the acquisition workforce, as defined in subsection
(h),''.
SEC. 102. DUAL-TRACK MILITARY PROFESSIONALS IN OPERATIONAL AND
ACQUISITION SPECIALITIES.
(a) Requirement for Service Chief Involvement.--Section 1722a(a) of
title 10, United States Code, is amended by inserting after ``military
department)'' the following: ``, in collaboration with the Chief of
Staff of the Army, the Chief of Naval Operations, the Chief of Staff of
the Air Force, and the Commandant of the Marine Corps (with respect to
the Army, Navy, Air Force, and Marine Corps, respectively),''.
(b) Dual-Track Career Path.--Section 1722a(b) of such title is
amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively;
(2) in paragraph (1), by inserting ``single-track'' before
``career path''; and
(3) by inserting after paragraph (1) the following new
paragraph (2):
``(2) A dual-track career path that attracts the highest
quality officers and enlisted personnel and allows them to gain
experience in and receive credit for a primary career in combat
arms and a functional secondary career in the acquisition field
in order to more closely align the military operational,
requirements, and acquisition workforces of each armed
force.''.
SEC. 103. PROVISION OF JOINT DUTY ASSIGNMENT CREDIT FOR ACQUISITION
DUTY.
Section 668(a)(1) of title 10, United States Code, is amended--
(1) by striking ``or'' at the end of subparagraph (D);
(2) by striking the period at the end of subparagraph (E)
and inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(F) acquisition matters addressed by military personnel
and covered under chapter 87 of this title.''.
SEC. 104. REQUIREMENT FOR ACQUISITION SKILLS ASSESSMENT BIENNIAL
STRATEGIC WORKFORCE PLAN.
(a) Requirement.--Section 115b(b)(1) of title 10, United States
Code, is amended--
(1) by redesignating subparagraph (D) as subparagraph (E);
(2) in subparagraph (C), by striking ``and'' at the end;
and
(3) by inserting after subparagraph (C) the following:
``(D) new or expanded critical skills and
competencies needed by the existing civilian employee
workforce of the Department to address new acquisition
process requirements established by law or policy
during the four years preceding the year of submission
of the plan; and''.
(b) Conforming Amendments.--Section 115b of such title is further
amended--
(1) in subparagraph (E) of subsection (b)(1), as
redesignated by subsection (a)(1), by striking ``(C)'' and
inserting ``(D)'';
(2) in paragraph (2) of subsection (b), in the matter
preceding subparagraph (A), by striking ``(1)(D)'' and
inserting ``(1)(E)''; and
(3) in paragraph (2)(A) of each of subsections (c), (d),
and (e), by striking ``through (D)'' and inserting ``through
(E)''.
SEC. 105. MANDATORY REQUIREMENT FOR TRAINING RELATED TO THE CONDUCT OF
MARKET RESEARCH.
(a) Mandatory Market Research Training.--Section 2377 of title 10,
United States Code, is amended by adding at the end the following new
subsection:
``(d) Market Research Training Required.--The Secretary of Defense
shall provide mandatory training for members of the armed forces and
employees of the Department of Defense responsible for the conduct of
market research required under subsection (c). Such mandatory training
shall, at a minimum--
``(1) provide comprehensive information on the subject of
market research and the function of market research in the
acquisition of commercial items;
``(2) teach best practices for conducting and documenting
market research; and
``(3) provide methodologies for establishing standard
processes and reports for collecting and sharing market
research across the Department.''.
(b) Incorporation Into Management Certification Training Mandate.--
The Chairman of the Joint Chiefs of Staff shall ensure that the
requirements of section 2377(d) of title 10, United States Code, as
added by subsection (a), are incorporated into the requirements
management certification training mandate of the Joint Capabilities
Integration Development System.
SEC. 106. INDEPENDENT STUDY OF IMPLEMENTATION OF DEFENSE ACQUISITION
WORKFORCE IMPROVEMENT EFFORTS.
(a) Requirement for Study.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of Defense shall enter into
a contract with an independent research entity described in subsection
(b) to carry out a comprehensive study of the strategic planning of the
Department of Defense related to the defense acquisition workforce. The
study shall provide a comprehensive examination of the Department's
efforts to recruit, develop, and retain the acquisition workforce with
a specific review of the following:
(1) The implementation of the Defense Acquisition Workforce
Improvement Act (including chapter 87 of title 10, United
States Code).
(2) The application of the Department of Defense
Acquisition Workforce Development Fund (as established under
section 1705 of title 10, United States Code).
(3) The effectiveness of professional military education
programs, including fellowships and exchanges with industry.
(b) Independent Research Entity.--The entity described in this
subsection is an independent research entity that is a not-for-profit
entity or a federally funded research and development center with
appropriate expertise and analytical capability.
(c) Reports.--
(1) To secretary.--Not later than one year after the date
of the enactment of this Act, the independent research entity
shall provide to the Secretary a report containing--
(A) the results of the study required by subsection
(a); and
(B) such recommendations to improve the acquisition
workforce as the independent research entity considers
to be appropriate.
(2) To congress.--Not later than 30 days after receipt of
the report under paragraph (1), the Secretary of Defense shall
submit such report, together with any additional views or
recommendations of the Secretary, to the congressional defense
committees.
TITLE II--WEAPON SYSTEMS ACQUISITION AND RELATED MATTERS
SEC. 201. SENSE OF CONGRESS ON THE DESIRED CHARACTERISTICS FOR THE
WEAPON SYSTEMS ACQUISITION SYSTEM.
(a) Findings.--Congress makes the following findings:
(1) Current situation.--Despite significant and repeated
attempts at acquisition reform, the Department of Defense still
experiences case after case of expensive weapon system
acquisition failures. The Department of Defense has a track
record of too many cancellations, schedule slippages, cost
over-runs, and failures to deliver timely solutions to the
requirements of the Armed Forces. This situation is
unacceptable. For example, according to the Final Report of the
2010 Army Acquisition Review, between 1996 and 2010, the Army
expended approximately $1 billion to $3 billion annually on two
dozen programs that were eventually cancelled. No military
service and no type of weapon acquisition has been immune.
(2) Problems in all phases of acquisitions.--
(A) Despite detailed weapon acquisition processes
and procedures, there is only limited discipline in
starting programs. Many programs begin without a solid
foundation. They have too many requirements deemed
``critical'', which are driven by too many
organizations and individuals. Approved requirements
are often set with only a limited understanding of the
technical feasibility of achieving them. The resulting
compromises of good program management and engineering
judgment that allow the programs to proceed are the
``spackle'' of the acquisition system that covers up
the risks and enables the system to operate.
(B) As these weapon systems proceed into
engineering and manufacturing development, they often
encounter development problems leading to cost growth,
schedule delay, and performance reductions. Industry
and Government officials frequently respond by taking
additional development risks to resolve basic
performance issues by reducing the time to analyze and
assess development results, overlapping key development
efforts, and reducing testing. The Department of
Defense and Congress disrupt the planned funding of
stable programs to find resources for troubled programs
or to fund across-the-board spending cuts. Funding
instability is the inevitable price that programs pay
for survival because funding disruptions actually keep
more programs alive.
(C) Finally, these weapons are often rushed into
production only to encounter production problems, and
are fielded with many unknowns or deficiencies leading
to significantly reduced quantities and force structure
reductions. The warfighter faces the challenge of
operating weapons with poor reliability, high
maintenance demands, reduced performance, and many
capability shortfalls.
(b) Sense of Congress.--
(1) In general.--It is the sense of Congress that, in
accordance with the tenets described in section 3, to improve
weapon system acquisitions, the Department of Defense,
Congress, and industry should develop an acquisition system
characterized by highly disciplined program initiation coupled
with agile program execution and balanced oversight, as
described in paragraphs (2), (3), and (4).
(2) Highly disciplined program initiation.--An acquisition
system characterized by highly disciplined program initiation
means that programs do not begin engineering development until
firm requirements are matched to a flexible acquisition
strategy structured to develop militarily useful capability
that can be delivered in a relevant period of time with
available technologies, funding, and management capacity. Such
a highly disciplined program initiation includes--
(A) a workforce with smart requirements setters and
expert buyers, with the knowledge, skills, and
experience to successfully plan for and execute highly
complex acquisitions;
(B) requirements that are well-defined, technically
feasible, and affordable;
(C) acquisition strategies that are designed to
minimize time to market of militarily useful
capability, with the program concerned being structured
so that--
(i) lower-risk, technically mature
capabilities are matched to delivering
capability to the warfighter in the near term,
while remaining requirements are aligned and
resources are programmed to support integration
into later increments to meet the requirements
of the Armed Forces;
(ii) capabilities are approved for an
increment only when their developmental risks
have been appropriately reduced; and
(iii) increments are planned to complete
engineering and manufacturing development in a
reasonable period of time;
(D) a science and technology development enterprise
that is responsive to the acquisition process before
engineering and manufacturing development begins, and
sufficiently resourced to reduce risks and enable
programs to make smart decisions without losing
critical funds; and
(E) redtape reduction in order to free up program
and Department officials to focus on their mission of
defining an executable program and understanding and
addressing risks.
(3) Agile program execution.--An acquisition system
characterized by agile program execution means a system in
which acquisition speed and flexibility to make trade-offs are
balanced with the need to achieve desired technical
performance. Such agile program execution includes--
(A) program managers and program officials who are
expert buyers and negotiators who anticipate problems,
negotiate solutions, and are empowered to manage;
(B) a preference for fixed price development, with
program initiation laying the foundation in which fixed
price contracting is the appropriate contract type for
product development;
(C) program managers who avoid increasing program
risk by resisting the addition of new requirements or
the reduction of developmental activities;
(D) empowering program managers and senior
decisionmakers to make decisions easily in order to
move forward with capabilities that mature quickly,
cancel those that encounter greater difficulties than
expected, and trade-off or reduce requirements to
maintain cost and schedule;
(E) enabling program managers to focus on
overcoming execution challenges and delivering success
rather than concentrating on compliance with reporting,
certifications, and other redtape; and
(F) senior decisionmakers who have knowledge of
demonstrated performance as programs proceed through
development, with robust developmental testing
occurring before committing to production for
operational use as a basis for decisionmaking.
(4) Balanced oversight.--An acquisition system
characterized by balanced oversight means that the focus is on
ensuring discipline initiating programs and that appropriate
adjustments are made during development, so that programs have
the best chance to succeed. Such balanced oversight includes--
(A) involvement by decisionmakers early to ensure
that an understanding of trade-offs, risks, and needs
are considered, resourced, and validated, and that
agreement is reached between the executive and
legislative branches;
(B) acceptance by decisionmakers that complex
weapon system developments are inherently risky and
require expertise and flexibility to manage
effectively;
(C) conscious decisions by decisionmakers regarding
where to accept risk, while ensuring that risk
mitigation plans are resourced (with time, funding,
alternatives, and competent government and contractor
officials);
(D) measuring and monitoring by decisionmakers of
the right factors, such as technology maturation
progress and systems engineering during risk reduction,
development cost growth during engineering and
manufacturing development, and reliability growth
during system demonstration;
(E) work by Congress and the Department of Defense,
once a program has begun, to resolve issues by
considering trade-offs among cost, schedule, and
performance necessary to best support the warfighter;
and
(F) congressional understanding of risks and
efforts to mitigate such risks even if they are through
non-traditional means or other technological advances.
SEC. 202. REVISION TO DUTIES OF THE DEPUTY ASSISTANT SECRETARY OF
DEFENSE FOR DEVELOPMENTAL TEST AND EVALUATION AND THE
DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR SYSTEMS
ENGINEERING.
Section 139b of title 10, United States Code, is amended--
(1) in subsection (a)(5)--
(A) in subparagraph (B), by striking ``review and
approve or disapprove'' and inserting ``advise in
writing the milestone decision authority regarding
review and approval of''; and
(B) in subparagraph (C), by inserting ``in order to
advise relevant technical authorities for such programs
on the incorporation of best practices for
developmental test from across the Department'' after
``programs''; and
(2) in subsection (b)(5)--
(A) in subparagraph (B), by striking ``review and
approve'' and inserting ``advise in writing the
milestone decision authority regarding review and
approval of''; and
(B) in subparagraph (C), by inserting ``in order to
advise relevant technical authorities for such programs
on the incorporation of best practices for systems
engineering from across the Department'' after
``programs''.
SEC. 203. ACQUISITION STRATEGY REQUIRED FOR EACH MAJOR DEFENSE
ACQUISITION PROGRAM AND MAJOR SYSTEM.
(a) Consolidation of Requirements Relating to Acquisition
Strategy.--
(1) New title 10 section.--Chapter 144 of title 10, United
States Code, is amended by inserting after section 2431 the
following new section:
``Sec. 2431a. Acquisition strategy
``(a) Acquisition Strategy Required.--There shall be an acquisition
strategy for each major defense acquisition program and each major
system approved by a Milestone Decision Authority.
``(b) Responsible Official.--For each acquisition strategy required
by subsection (a), the Under Secretary of Defense for Acquisition,
Technology, and Logistics is responsible for issuing and maintaining
the requirements for--
``(1) the content of the strategy; and
``(2) the review and approval process for the strategy.
``(c) Considerations.--(1) In issuing requirements for the content
of an acquisition strategy for a major defense acquisition program or
major system, the Under Secretary shall ensure that--
``(A) the strategy clearly describes the proposed business
and technical management approach for the program or system, in
sufficient detail to allow the Milestone Decision Authority to
assess the viability of the proposed approach;
``(B) the strategy contains a clear explanation of how the
strategy is designed to be implemented with available
resources, such as time, funding, and management capacity; and
``(C) the strategy considers the items listed in paragraph
(2).
``(2) Each strategy shall, at a minimum, consider the following:
``(A) An approach that delivers required capability in
increments, each depending on available mature technology, and
that recognizes up front the need for future capability
improvements.
``(B) Acquisition approach, including industrial base
considerations in accordance with section 2440 of this title.
``(C) Risk management, including such methods as
competitive prototyping at the system, subsystem, or component
level, in accordance with section 2431b of this title.
``(D) Business strategy, including measures to ensure
competition at the system and subsystem level throughout the
life-cycle of the program or system in accordance with section
2337 of this title.
``(E) Contracting strategy, including--
``(i) contract type and how the type selected
relates to level of program risk in each acquisition
phase;
``(ii) how the plans for the program or system to
reduce risk enable the use of fixed-price elements in
subsequent contracts and the timing of the use of those
fixed price elements;
``(iii) market research; and
``(iv) consideration of small business
participation.
``(F) Intellectual property strategy in accordance with
section 2320 of this title.
``(G) International involvement, including foreign military
sales and cooperative opportunities, in accordance with section
2350a of this title.
``(H) Multi-year procurement in accordance with section
2306b of this title.
``(I) Integration of current intelligence assessments into
the acquisition process.
``(d) Review.--(1) Subject to the authority, direction, and control
of the Under Secretary of Defense for Acquisition, Technology, and
Logistics, the Milestone Decision Authority shall review and approve,
as appropriate, the acquisition strategy for a major defense
acquisition program or major system at each of the following times:
``(A) Milestone A approval.
``(B) The decision to release the request for
proposals for development of the program or system.
``(C) Milestone B approval.
``(D) Each subsequent milestone.
``(E) Review of any decision to enter into full-
rate production.
``(F) When there has been--
``(i) a significant change to the cost of
the program or system;
``(ii) a critical change to the cost of the
program or system;
``(iii) a significant change to the
schedule of the program or system; or
``(iv) a significant change to the
performance of the program or system.
``(G) Any other time considered relevant by the
Milestone Decision Authority.
``(2) If the Milestone Decision Authority revises an acquisition
strategy for a program or system, the Milestone Decision Authority
shall provide notice of the revision to the congressional defense
committees.
``(e) Definitions.--In this section:
``(1) The term `major defense acquisition program' has the
meaning provided in section 2430 of this title.
``(2) The term `major system' has the meaning provided in
section 2302(5) of this title.
``(3) The term `Milestone A approval' means a decision to
enter into technology maturation and risk reduction pursuant to
guidance prescribed by the Secretary of Defense for the
management of Department of Defense acquisition programs.
``(4) The term `Milestone B approval' has the meaning
provided in section 2366(e)(7) of this title.
``(5) The term `Milestone Decision Authority', with respect
to a major defense acquisition program or major system, means
the official within the Department of Defense designated with
the overall responsibility and authority for acquisition
decisions for the program or system, including authority to
approve entry of the program or system into the next phase of
the acquisition process.
``(6) The term `management capacity', with respect to a
major defense acquisition program or major system, means the
capacity to manage the program or system through the use of
highly qualified organizations and personnel with appropriate
experience, knowledge, and skills.
``(7) The term `significant change to the cost', with
respect to a major defense acquisition program or major system,
means a significant cost growth threshold, as that term is
defined in section 2433(a)(4) of this title.
``(8) The term `critical change to the cost', with respect
to a major defense acquisition program or major system, means a
critical cost growth threshold, as that term is defined in
section 2433(a)(5) of this title.
``(9) The term `significant change to the schedule', with
respect to a major defense acquisition program or major system,
means any schedule delay greater than six months in a reported
event.
``(f) Submission to Congressional Committees.--Upon request by the
chairman or ranking member of the Committee on Armed Services of the
Senate or the House of Representatives, the Secretary of Defense shall
submit to the committee the most recently approved acquisition strategy
for a major defense acquisition program or major system. The strategy
shall be submitted in unclassified form but may include a classified
annex.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2431 the following new item:
``2431a. Acquisition strategy.''.
(b) Additional Amendments.--
(1) Section 2350a(e) of such title is amended--
(A) in the subsection heading, by striking
``Document'';
(B) in paragraph (1), by striking ``the Under
Secretary of Defense for'' and all that follows through
``of the Board'' and inserting ``opportunities for such
cooperative research and development shall be addressed
in the acquisition strategy for the project''; and
(C) in paragraph (2)--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``document'' and
inserting ``discussion''; and
(II) by striking ``include'' and
inserting ``consider'';
(ii) in subparagraph (A), by striking ``A
statement indicating whether'' and inserting
``Whether'';
(iii) in subparagraph (B)--
(I) by striking ``by the Under
Secretary of Defense for Acquisition,
Technology, and Logistics''; and
(II) by striking ``of the United
States under consideration by the
Department of Defense''; and
(iv) in subparagraph (D), by striking ``The
recommendation of the Under Secretary'' and
inserting ``A recommendation to the Milestone
Decision Authority''.
(2) Section 803 of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10
U.S.C. 2430 note) is repealed.
SEC. 204. REVISION TO REQUIREMENTS RELATING TO RISK MANAGEMENT IN
DEVELOPMENT OF MAJOR DEFENSE ACQUISITION PROGRAMS AND
MAJOR SYSTEMS.
(a) Risk Management and Mitigation Requirements.--
(1) In general.--Chapter 144 of title 10, United States
Code, is amended by inserting after section 2431a (as added by
section 203) the following new section:
``Sec. 2431b. Risk management and mitigation in major defense
acquisition programs and major systems
``(a) Requirement.--(1) There shall be a risk management and
mitigation strategy for each major defense acquisition program or major
system.
``(2) The Secretary of Defense shall ensure that the initial
acquisition strategy (required under section 2431a of this title)
approved by the Milestone Decision Authority and any subsequent
revisions include the following:
``(A) A comprehensive strategy for managing and mitigating
risk (including technical, cost, and schedule risk) during each
of the following periods:
``(i) The period preceding engineering
manufacturing development, or its equivalent.
``(ii) The period preceding initial production.
``(iii) The period preceding full-rate production.
``(B) An identification of the major sources of risk in
each of the periods listed in subparagraph (A).
``(3) In the case of a program or system with separate increments
of capabilities that require Milestone Decision Authority approval to
begin or proceed, paragraphs (1) and (2) shall apply to each increment.
``(b) Strategy To Manage and Mitigate Risks.--(1) The comprehensive
strategy to manage and mitigate risk included in the acquisition
strategy for purposes of subsection (a)(2)(A) shall identify each
individual risk and the risk management and mitigation activities to
address each risk. For the mitigation activities identified, the
strategy shall note whether they require cost and schedule margins and
need to be included in funding requests.
``(2) The comprehensive strategy shall include the role and extent
of the following:
``(A) Prototyping (including prototyping at the system,
subsystem, or component level and competitive prototyping,
where appropriate) and, if prototyping at either the system,
subsystem, or component level is not used, an explanation of
why it is not appropriate.
``(B) Modeling and simulation, the areas that modeling and
simulation will assess, and identification of the need for
development of any new modeling and simulation tools in order
to support the comprehensive strategy.
``(C) Technology demonstrations and decision points for
disciplined transition of planned technologies into programs or
the selection of alternative technologies.
``(D) Multiple design approaches.
``(E) Alternative designs, including any designs that meet
requirements but do so with reduced performance.
``(F) Phasing of program activities or related technology
development efforts in order to address high risk areas as
early as feasible.
``(c) Definitions.--In this section, the terms `major defense
acquisition program' and `major system' have the meanings provided in
section 2431a of this title.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2431a, as so added, the following new
item:
``2431b. Risk management and mitigation in major defense acquisition
programs and major systems.''.
(b) Repeal of Superseded Provision.--Section 203 of the Weapon
Systems Acquisition Reform Act of 2009 (10 U.S.C. 2430 note) is
repealed.
SEC. 205. MODIFICATION TO REQUIREMENTS RELATING TO DETERMINATION OF
CONTRACT TYPE FOR MAJOR DEFENSE ACQUISITION PROGRAMS AND
MAJOR SYSTEMS.
(a) Determination of Contract Type.--Section 2306 of title 10,
United States Code, is amended by adding at the end the following new
subsection:
``(i) Required Elements of Guidance Relating to Contract Type.--(1)
The Secretary of Defense shall ensure that the guidance of the
Department of Defense relating to major defense acquisition programs,
major systems, and major automated information systems includes a
requirement that the acquisition strategy required under section 2431a
of this title for such a program or system includes--
``(A) a separate identification of the contract type for
each acquisition phase of the program or system; and
``(B) a justification of the contract type identified.
``(2) The contract type identified in accordance with paragraph
(1)(A) may be--
``(A) a fixed-price type contract (including a fixed-price
incentive contract); or
``(B) a cost-type contract (including a cost-plus-
incentive-fee contract).
``(3) The guidance referred to in paragraph (1) shall require that
the justification for the contract type selected explain--
``(A) how the level of program risk in each acquisition
phase relates to the contract type selected;
``(B) how the use of incentives (especially cost
incentives) in the contract, if any, supports the program or
system objectives during each acquisition phase; and
``(C) how the plans for the program or system to reduce
risk enable the use of fixed-price elements in subsequent
contracts.
``(4) The guidance shall also specify that the use of contracts
with target costs, target profits or fees, and profit or fee adjustment
formulas can be an appropriate contract type.''.
(b) Repeal.--Section 818 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 U.S.C.
2306 note) is amended by striking subsections (b), (c), (d), and (e).
SEC. 206. REQUIRED DETERMINATION BEFORE MILESTONE A APPROVAL OR
INITIATION OF MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Determination Rather Than Certification Required.--Subsection
(a) of section 2366a of title 10, United States Code, is amended--
(1) in the subsection heading, by striking
``Certification'' and inserting ``Written Determination
Required''; and
(2) in the matter preceding paragraph (1), by striking
``certifies'' and inserting ``determines, in writing,''.
(b) Submission of Written Determination to Congress.--Subsection
(b) of such section is amended to read as follows:
``(b) Submission to Congress.--At the request of any of the
congressional defense committees, the Secretary of Defense shall submit
to the committee an explanation of the basis for a determination made
under subsection (a) with respect to a major defense acquisition
program, together with a copy of the written determination. The
explanation shall be submitted in unclassified form, but may include a
classified annex.''.
(c) Repeal of Unused Definitions.--Subsection (c) of such section
is amended--
(1) by striking paragraphs (2) and (4); and
(2) by redesignating paragraphs (3), (5), (6), and (7) as
paragraphs (2), (3), (4), and (5), respectively.
(d) Clerical Amendments.--
(1) Section heading.--The heading of section 2366a of title
10, United States Code, is amended to read as follows:
``Sec. 2366a. Major defense acquisition programs: determination
required before Milestone A approval''.
(2) Table of sections.--The table of sections at the
beginning of chapter 139 of such title is amended by striking
the item relating to section 2366a and inserting the following
new item:
``2366a. Major defense acquisition programs: determination required
before Milestone A approval.''.
SEC. 207. REQUIRED CERTIFICATION AND DETERMINATION BEFORE MILESTONE B
APPROVAL OF MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Determination Required in Addition to Certification.--
Subsection (a) of section 2366b of title 10, United States Code, is
amended--
(1) in the subsection heading, by striking
``Certification'' and inserting ``Certification and
Determination Required'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by striking ``(3) further certifies that--'' and
inserting the following:
``(3) further certifies that the technology in the program
has been demonstrated in a relevant environment, as determined
by the Milestone Decision Authority on the basis of an
independent review and assessment by the Assistant Secretary of
Defense for Research and Engineering, in consultation with the
Deputy Assistant Secretary of Defense for Developmental Test
and Evaluation;
``(4) determines, in writing, that--''.
(b) Submission of Written Determination to Congress.--Subsection
(c) of such section is amended by adding at the end the following new
paragraph:
``(3) At the request of any of the congressional defense
committees, the Secretary of Defense shall submit to the committee an
explanation of the basis for a determination made under subsection
(a)(4) with respect to a major defense acquisition program, together
with a copy of the written determination. The explanation shall be
submitted in unclassified form, but may include a classified annex.''.
(c) National Security Waiver.--Subsection (d) of such section is
amended--
(1) in paragraph (1), by striking ``certification
requirement'' and inserting ``certification and determination
requirements''; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A) and in
subparagraph (A), by inserting ``waiver'' before
``determination'' each place it appears; and
(B) in subparagraph (B), by striking
``certification components'' both places it appears and
inserting ``certification and determination
components''.
(d) Conforming Amendments.--Section 2366b of title 10, United
States Code, is further amended--
(1) in subsection (b)(1), by striking ``paragraph (1) or
(2) of subsection (a)'' and inserting ``paragraph (1), (2), or
(3) of subsection (a)'';
(2) in subsection (d)(1), by striking ``paragraph (1), (2),
or (3) of subsection (a)'' and inserting ``paragraph (1), (2),
(3), or (4) of subsection (a)''; and
(3) in subsection (d)(2)(B), by striking ``paragraphs (1),
(2), and (3) of subsection (a)'' and inserting ``paragraphs
(1), (2), (3), and (4) of subsection (a)''.
(e) Clerical Amendments.--
(1) Section heading.--The heading of section 2366b of title
10, United States Code, is amended to read as follows:
``Sec. 2366b. Major defense acquisition programs: certification and
determination required before Milestone B approval''.
(2) Table of sections.--The table of sections at the
beginning of chapter 139 of such title is amended by striking
the item relating to section 2366b and inserting the following
new item:
``2366b. Major defense acquisition programs: certification and
determination required before Milestone B
approval.''.
TITLE III--SERVICES CONTRACTING AND RELATED MATTERS
SEC. 301. EXAMINATION AND GUIDANCE RELATING TO OVERSIGHT AND APPROVAL
OF SERVICES CONTRACTS.
Not later than September 15, 2015, the Under Secretary of Defense
for Acquisition, Technology, and Logistics shall--
(1) complete an examination of the decision authority
related to acquisition of services; and
(2) develop and issue guidance to improve capabilities and
processes related to requirements development and source
selection for, and oversight and management of, services
contracts.
TITLE IV--INFORMATION TECHNOLOGY ACQUISITIONS AND RELATED MATTERS
SEC. 401. STREAMLINING OF REQUIREMENTS RELATING TO DEFENSE BUSINESS
SYSTEMS.
(a) In General.--
(1) Revision.--Section 2222 of title 10, United States
Code, is amended to read as follows:
``Sec. 2222. Defense business systems: business process reengineering;
enterprise architecture; management
``(a) Defense Business Systems Generally.--The Secretary of Defense
shall ensure that each covered defense business system developed,
deployed, and operated by the Department of Defense--
``(1) supports efficient business processes that have been
reviewed, and as appropriate revised, through business process
reengineering;
``(2) is integrated into a comprehensive defense business
enterprise architecture; and
``(3) is managed in a manner that provides visibility into,
and traceability of, expenditures for the system.
``(b) Issuance of Guidance.--
``(1) Secretary of defense guidance.--The Secretary shall
issue guidance to provide for the coordination of, and
decisionmaking for, the planning, programming, and control of
investments in covered defense business systems.
``(2) Supporting guidance.--The Secretary shall direct the
Deputy Chief Management Officer of the Department of Defense,
the Under Secretary of Defense for Acquisition, Technology, and
Logistics, the Chief Information Officer, and the Chief
Management Officer of each of the military departments to issue
and maintain supporting guidance, as appropriate, for the
guidance of the Secretary issued under paragraph (1).
``(c) Guidance Elements.--The guidance issued under subsection
(b)(1) shall include the following elements:
``(1) Policy to ensure that the business processes of the
Department of Defense are continuously reviewed and revised--
``(A) to implement the most streamlined and
efficient business processes practicable; and
``(B) to enable the use of commercial off-the-shelf
business systems with the fewest changes necessary to
accommodate requirements and interfaces that are unique
to the Department of Defense.
``(2) A process to establish requirements for covered
defense business systems.
``(3) Mechanisms for the planning and control of
investments in covered defense business systems, including a
process for the collection and review of programming and
budgeting information for covered defense business systems.
``(4) Policy requiring the periodic review of covered
defense business systems that have been fully deployed, by
portfolio, to ensure that investments in such portfolios are
appropriate.
``(d) Defense Business Enterprise Architecture.--
``(1) Blueprint.--The Secretary, working through the Deputy
Chief Management Officer of the Department of Defense, shall
develop and maintain a blueprint to guide the development of
integrated business processes within the Department of Defense.
Such blueprint shall be known as the `defense business
enterprise architecture'.
``(2) Purpose.--The defense business enterprise
architecture shall be sufficiently defined to effectively guide
implementation of interoperable defense business system
solutions and shall be consistent with the policies and
procedures established by the Director of the Office of
Management and Budget.
``(3) Elements.--The defense business enterprise
architecture shall--
``(A) include policies, procedures, business data
standards, business performance measures, and business
information requirements that apply uniformly
throughout the Department of Defense; and
``(B) enable the Department of Defense to--
``(i) comply with all applicable law,
including Federal accounting, financial
management, and reporting requirements;
``(ii) routinely produce verifiable,
timely, accurate, and reliable business and
financial information for management purposes;
and
``(iii) integrate budget, accounting, and
program information and systems.
``(4) Integration into information technology
architecture.--(A) The defense business enterprise architecture
shall be integrated into the information technology enterprise
architecture required under subparagraph (B).
``(B) The Chief Information Officer of the Department of
Defense shall develop an information technology enterprise
architecture. The architecture shall describe a plan for
improving the information technology and computing
infrastructure of the Department of Defense, including for each
of the major business processes conducted by the Department of
Defense.
``(e) Defense Business Council.--
``(1) Requirement for council.--The Secretary shall
establish a Defense Business Council to provide advice to the
Secretary on developing the defense business enterprise
architecture, reengineering the Department's business
processes, and requirements for defense business systems. The
Council shall be chaired by the Deputy Chief Management Officer
and the Chief Information Officer of the Department of Defense.
``(2) Membership.--The membership of the Council shall
include the following:
``(A) The Chief Management Officers of the military
departments, or their designees.
``(B) The following officials of the Department of
Defense, or their designees:
``(i) The Under Secretary of Defense for
Acquisition, Technology, and Logistics with
respect to acquisition, logistics, and
installations management processes.
``(ii) The Under Secretary of Defense
(Comptroller) with respect to financial
management and planning and budgeting
processes.
``(iii) The Under Secretary of Defense for
Personnel and Readiness with respect to human
resources management processes.
``(f) Approvals Required for Development.--
``(1) Initial approval required.--The Secretary shall
ensure that a covered defense business system program cannot
proceed into development (or, if no development is required,
into production or fielding) unless the appropriate approval
official (as specified in paragraph (2)) approves the program
by determining that the covered defense business system
concerned--
``(A) supports a business process that has been, or
is being as a result of the acquisition program,
reengineered to be as streamlined and efficient as
practicable consistent with the guidance issued
pursuant to subsection (b), including business process
mapping;
``(B) is in compliance with the defense business
enterprise architecture developed pursuant to
subsection (d) or will be in compliance as a result of
modifications planned;
``(C) has valid, achievable requirements; and
``(D) is in compliance with the Department's
auditability requirements.
``(2) Appropriate official.--For purposes of paragraph (1),
the appropriate approval official with respect to a covered
defense business system is the following:
``(A) In the case of a system of a military
department, the Chief Management Officer of that
military department.
``(B) In the case of a system of a Defense Agency
or Defense Field Activity or a system that will support
the business process of more than one military
department or Defense Agency or Defense Field Activity,
the Deputy Chief Management Officer of the Department
of Defense.
``(C) In the case of any system, such official
other than the applicable official under subparagraph
(A) or (B) as the Secretary designates for such
purpose.
``(3) Annual certification.--For any fiscal year in which
funds are expended for development pursuant to a covered
defense business system program, the Defense Business Council
shall review the system and certify (or decline to certify as
the case may be) that it continues to satisfy the requirements
of paragraph (1). If the Council determines that certification
cannot be granted, the chairman of the Council shall notify the
appropriate approval official and the acquisition Milestone
Decision Authority for the program and provide a recommendation
for corrective action.
``(4) Obligation of funds in violation of requirements.--
The obligation of Department of Defense funds for a covered
defense business system program that has not been certified in
accordance with paragraph (3) is a violation of section
1341(a)(1)(A) of title 31.
``(g) Responsibility of Milestone Decision Authority.--The
Secretary shall ensure that, as part of the defense acquisition system,
the requirements of this section are fully addressed by the Milestone
Decision Authority for a covered defense business system program as
acquisition process approvals are considered for such system.
``(h) Annual Report.--Not later than March 15 of each year from
2016 through 2020, the Secretary shall submit to the congressional
defense committees a report on activities of the Department of Defense
pursuant to this section. Each report shall include the following:
``(1) A description of actions taken and planned with
respect to the guidance required by subsection (b) and the
defense business enterprise architecture developed pursuant to
subsection (d).
``(2) A description of actions taken and planned for the
reengineering of business processes by the Defense Business
Council established pursuant to subsection (e).
``(3) A summary of covered defense business system funding
and covered defense business systems approved pursuant to
subsection (f).
``(4) Identification of any covered defense business system
program that during the preceding fiscal year was reviewed and
not approved pursuant to subsection (f) and the reasons for the
lack of approval.
``(5) Identification of any covered defense business system
program that during the preceding fiscal year failed to achieve
initial operational capability within five years after the date
the program received Milestone B approval.
``(6) For any program identified under paragraph (5), a
description of the plan to address the issues that caused the
failure.
``(7) A discussion of specific improvements in business
operations and cost savings resulting from successful covered
defense business systems programs.
``(8) A copy of the most recent report of the Chief
Management Officer of each military department on
implementation of business transformation initiatives by such
military department in accordance with section 908 of the
Duncan Hunter National Defense Authorization Act for Fiscal
Year 2009 (Public Law 110-417; 122 Stat. 4569; 10 U.S.C. 2222
note).
``(i) Definitions.--In this section:
``(1)(A) Defense business system.--The term `defense
business system' means an information system that is operated
by, for, or on behalf of the Department of Defense, including
any of the following:
``(i) A financial system.
``(ii) A financial data feeder system.
``(iii) A contracting system.
``(iv) A logistics system.
``(v) A planning and budgeting system.
``(vi) An installations management system.
``(vii) A human resources management
system.
``(viii) A training and readiness system.
``(B) The term does not include--
``(i) a national security system; or
``(ii) an information system used
exclusively by and within the defense
commissary system or the exchange system or
other instrumentality of the Department of
Defense conducted for the morale, welfare, and
recreation of members of the armed forces using
nonappropriated funds.
``(2) Covered defense business system.--The term `covered
defense business system' means a defense business system that
is expected to have a total amount of budget authority, over
the period of the current future-years defense program
submitted to Congress under section 221 of this title, in
excess of the threshold established for the use of special
simplified acquisition procedures pursuant to section
2304(g)(1)(B) of this title.
``(3) Covered defense business system program.--The term
`covered defense business system program' means a defense
acquisition program to develop and field a covered defense
business system or an increment of a covered defense business
system.
``(4) Enterprise architecture.--The term `enterprise
architecture' has the meaning given that term in section
3601(4) of title 44.
``(5) Information system.--The term `information system'
has the meaning given that term in section 11101 of title 40.
``(6) National security system.--The term `national
security system' has the meaning given that term in section
3542(b)(2) of title 44.
``(7) Milestone decision authority.--The term `Milestone
Decision Authority', with respect to a defense acquisition
program, means the individual within the Department of Defense
designated with the responsibility to grant milestone approvals
for that program.
``(8) Business process mapping.--The term `business process
mapping' means a procedure in which the steps in a business
process are clarified and documented in both written form and
in a flow chart.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:
``2222. Defense business systems: business process reengineering;
enterprise architecture; management.''.
(b) Deadline for Guidance.--The guidance required by subsection
(b)(1) of section 2222 of title 10, United States Code, as amended by
subsection (a)(1), shall be issued not later than December 31, 2016.
(c) Repeal.--Section 811 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 U.S.C.
2222 note) is repealed.
TITLE V--INDUSTRIAL BASE MATTERS
SEC. 501. CODIFICATION AND AMENDMENT OF MENTOR-PROTEGE PROGRAM.
(a) In General.--Section 831 of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1607; 10 U.S.C.
2302 note) is transferred to chapter 137 of title 10, United States
Code, inserted so as to appear after section 2323a, redesignated as
section 2323b, and amended--
(1) by amending the section heading to read as follows:
``Sec. 2323b. Mentor-Protege Program'';
(2) by striking ``pilot'' each place such term appears;
(3) by amending subsection (e)(1) to read as follows:
``(1) A developmental program for the protege firm, in such
detail as may be reasonable, including--
``(A) factors to assess the protege firm's
developmental progress under the program; and
``(B) the anticipated number and type of
subcontracts to be awarded to the protege firm.'';
(4) in subsection (g)(2)(B), by striking ``under subsection
(l)(2)'';
(5) in subsection (h)(1), by inserting ``(15 U.S.C. 631 et
seq.)'' after ``Small Business Act'';
(6) by striking subsection (j) and redesignating
subsections (k) and (l) as subsections (j) and (k),
respectively;
(7) by amending subsection (j) (as so redesignated) to read
as follows:
``(j) Regulations.--The regulations implementing the Mentor-Protege
Pilot Program established under section 831 of the National Defense
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat.
1607; 10 U.S.C. 2302 note) as in effect on March 25, 2015, shall apply
to this section. The Secretary of Defense may revise such regulations
or prescribe additional regulations necessary to carry out this
section. The Department of Defense policy regarding the Mentor-Protege
Program shall be published and maintained as an appendix to the
Department of Defense Supplement to the Federal Acquisition
Regulation.'';
(8) by striking ``prescribed pursuant to subsection (k)''
each place such term appears and inserting ``described in
subsection (j)''; and
(9) in subsection (k) (as so redesignated)--
(A) in paragraph (1), by striking ``means a
business concern that meets the requirements of section
3(a) of the Small Business Act (15 U.S.C. 632(a)) and
the regulations promulgated pursuant thereto'' and
inserting ``has the meaning given such term under
section 3 of the Small Business Act (15 U.S.C. 632)'';
(B) in paragraph (2)--
(i) in subparagraph (D), by striking ``the
severely disabled'' and inserting ``severely
disabled individuals''; and
(ii) in subparagraph (G), by inserting
``(15 U.S.C. 632(p))'' after ``Small Business
Act'';
(C) in paragraph (4), by striking ``of title 10,
United States Code'' and inserting ``of this title'';
and
(D) by amending paragraph (8) to read as follows:
``(8) The term `severely disabled individual' means an
individual who is blind (as defined in section 8501 of title
41) or a severely disabled individual (as defined in such
section).''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2323a the following new item:
``2323b. Mentor-Protege Program.''.
SEC. 502. AMENDMENTS TO DATA QUALITY IMPROVEMENT PLAN.
(a) In General.--Section 15(s) of the Small Business Act (15 U.S.C.
644(s)) is amended--
(1) by redesignating paragraph (4) as paragraph (6); and
(2) by inserting after paragraph (3) the following new
paragraphs:
``(4) Implementation.--Not later than the first day of
fiscal year 2017, the Administrator of the Small Business
Administration shall implement the plan described in this
subsection.
``(5) Certification.--The Administrator shall annually
provide to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a certification of the accuracy
and completeness of data reported on bundled and consolidated
contracts.''.
(b) GAO Study.--
(1) Study.--Not later than the first day of fiscal year
2018, the Comptroller General of the United States shall
initiate a study on the effectiveness of the plan described in
section 15(s) of the Small Business Act (15 U.S.C. 644(s)) that
shall assess whether contracts were accurately labeled as
bundled or consolidated.
(2) Contracts evaluated.--For the purposes of conducting
the study described in paragraph (1), the Comptroller General
of the United States--
(A) shall evaluate, for work in each of sectors 23,
33, 54, and 56 (as defined by the North American
Industry Classification System), not fewer than 100
contracts in each sector;
(B) shall evaluate only those contracts--
(i) awarded by an agency listed in section
901(b) of title 31, United States Code; and
(ii) that have a Base and Exercised Options
Value, an Action Obligation, or a Base and All
Options Value (as such terms are defined in the
Federal procurement data system described in
section 1222(a)(4)(A) of title 41, United
States Code, or any successor system); and
(C) shall not evaluate contracts that have used any
set aside authority.
(3) Report.--Not later than 12 months after initiating the
study required by paragraph (1), the Comptroller General of the
United States shall report to the Committee on Small Business
of the House of Representatives and the Committee on Small
Business and Entrepreneurship of the Senate on the results from
such study and, if warranted, any recommendations on how to
improve the quality of data reported on bundled and
consolidated contracts.
SEC. 503. NOTICE OF CONTRACT CONSOLIDATION FOR ACQUISITION STRATEGIES.
(a) Notice Requirement for the Senior Procurement Executive or
Chief Acquisition Officer.--Section 44(c)(2) of the Small Business Act
(15 U.S.C. 657q(c)(2)) is amended by adding at the end the following:
``(C) Notice.--Not later than 7 days after making a
determination that an acquisition strategy involving a
consolidation of contract requirements is necessary and
justified under subparagraph (A), the senior
procurement executive or Chief Acquisition Officer
shall publish a notice on a public website that such
determination has been made. Any solicitation for a
procurement related to the acquisition strategy may not
be published earlier than 7 days after such notice is
published. Along with the publication of the
solicitation, the senior procurement executive or Chief
Acquisition Officer shall publish a justification for
the determination, which shall include the information
in subparagraphs (A) through (E) of paragraph (1).''.
(b) Notice Requirement for the Head of a Contracting Agency.--
Section 15(e)(3) of the Small Business Act (15 U.S.C. 644(e)(3)) is
amended to read as follows:
``(3) Strategy specifications.--If the head of a
contracting agency determines that an acquisition plan for a
procurement involves a substantial bundling of contract
requirements, the head of a contracting agency shall publish a
notice on a public website that such determination has been
made not later than 7 days after making such determination. Any
solicitation for a procurement related to the acquisition plan
may not be published earlier than 7 days after such notice is
published. Along with the publication of the solicitation, the
head of a contracting agency shall publish a justification for
the determination, which shall include following information:
``(A) The specific benefits anticipated to be
derived from the bundling of contract requirements and
a determination that such benefits justify the
bundling.
``(B) An identification of any alternative
contracting approaches that would involve a lesser
degree of bundling of contract requirements.
``(C) An assessment of--
``(i) the specific impediments to
participation by small business concerns as
prime contractors that result from the bundling
of contract requirements; and
``(ii) the specific actions designed to
maximize participation of small business
concerns as subcontractors (including
suppliers) at various tiers under the contract
or contracts that are awarded to meet the
requirements.''.
(c) Technical Amendment.--Section 44(c)(1) of the Small Business
Act (15 U.S.C. 657q(c)(1)) is amended by striking ``Subject to
paragraph (4), the head'' and inserting ``The head''.
SEC. 504. CLARIFICATION OF REQUIREMENTS RELATED TO SMALL BUSINESS
CONTRACTS FOR SERVICES.
(a) Procurement Contracts.--Section 8(a)(17) of the Small Business
Act (15 U.S.C. 637(a)(17)) is amended--
(1) in subparagraph (A), by striking ``any procurement
contract'' and all that follows through ``section 15'' and
inserting ``any procurement contract, which contract has as its
principal purpose the supply of a product to be let pursuant to
this subsection or subsection (m), or section 15(a), 31, or
36,''; and
(2) by adding at the end the following new subparagraph:
``(C) Limitation.--This paragraph shall not apply to a
contract that has as its principal purpose the acquisition of
services or construction.''.
(b) Subcontractor Contracts.--Section 46(a)(4) of the Small
Business Act (15 U.S.C. 657s(a)(4)) is amended by striking ``for
supplies from a regular dealer in such supplies'' and inserting ``which
is principally for supplies from a regular dealer in such supplies, and
which is not a contract principally for services or construction,''.
SEC. 505. REVIEW OF GOVERNMENT ACCESS TO INTELLECTUAL PROPERTY RIGHTS
OF PRIVATE SECTOR FIRMS.
(a) Review Required.--The Secretary of Defense shall direct the
Defense Business Board to conduct a review of Department of Defense
regulations and practices, and laws authorizing such regulations and
practices, related to Government access to and use of intellectual
property rights of private sector firms.
(b) Report.--Not later than March 1, 2016, the Secretary shall
submit to the congressional defense committees a report on the findings
of the Defense Business Board, along with any actions the Secretary
proposes to revise and clarify laws or regulations related to
intellectual property rights.
SEC. 506. MODIFICATIONS TO THE SMALL BUSINESS INNOVATIVE RESEARCH
PROGRAM AND THE SMALL BUSINESS TECHNOLOGY TRANSFER
PROGRAM.
Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``development;''
and inserting ``development, particularly contracts for
research and development supporting defense and
national security missions and programs;''; and
(B) in paragraph (3), by striking ``; and'' and
inserting a semicolon;
(2) in subsection (e)--
(A) in paragraph (4)(C)(i), by inserting ``or non-
Federal sources of capital'' after ``funding awards'';
and
(B) in paragraph (6)(C)(i), by inserting ``or non-
Federal sources of capital'' after ``funding awards'';
(3) in subsection (f)--
(A) in paragraph (1), by striking ``paragraph
(2)(B)'' and inserting ``paragraphs (2)(B) and (5)'';
and
(B) by adding at the end the following new
paragraph:
``(5) Required expenditures for military departments.--The
Secretary of each military department shall expend, in
connection with SBIR, not less than 2.9 percent and not more
than 5 percent of each such military department's extramural
budget for research or research and development for fiscal year
2018 and each subsequent fiscal year.'';
(4) in subsection (g)(3)--
(A) in subparagraph (A), by striking ``; or'' and
inserting a semicolon;
(B) in subparagraph (B), by inserting ``or'' after
the semicolon; and
(C) by adding at the end the following new
subparagraph:
``(C) the Secretary of Defense and as applied to
the Department of Defense and each military department,
in the quadrennial defense review (described in section
118 of title 10, United States Code) and other
strategies or reports that direct the research and
development and acquisition processes of the Department
of Defense;'';
(5) in subsection (j), by adding at the end the following
new paragraph:
``(4) Modifications related to military departments.--Not
later than 90 days after March 25, 2015, the Administrator
shall modify the policy directives issued pursuant to this
subsection to establish the authority of each Secretary of a
military department to manage and operate the SBIR program
funded under subsection (f)(5).'';
(6) in subsection (k)(2)--
(A) by striking ``subsection (f)(1)'' and inserting
``paragraphs (1) and (4) of subsection (f)''; and
(B) by striking ``subsection (n)(1)'' and inserting
``paragraphs (1) and (4) of subsection (n)'';
(7) in subsection (m), by inserting ``, except as provided
in subsections (f)(5) and (n)(4)'' after ``2017'';
(8) in subsection (n)--
(A) in paragraph (1)(B), by striking ``The
percentage'' and inserting ``Except as provided in
paragraph (4), the percentage''; and
(B) by adding at the end the following new
paragraph:
``(4) Required expenditure for military departments.--The
Secretary of each military department shall expend, in
connection with STTR, not more than 5 percent of each such
military department's extramural budget for research or
research and development for fiscal year 2018 and each
subsequent fiscal year.'';
(9) in subsection (o)(3)(B), by striking ``Code;'' and
inserting ``Code, and in other reports that direct the research
and development and acquisition processes of the Department of
Defense;'';
(10) in subsection (p), by adding at the end the following
new paragraph:
``(4) Modifications related to military departments.--Not
later than 90 days after the date of enactment of the Agile
Acquisition to Retain Technological Edge Act, the Administrator
shall modify the policy directives issued pursuant to this
subsection to establish the authority of each Secretary of a
military department to manage and operate the STTR program
funded under subsection (n)(4).'';
(11) in subsection (r)(4), by adding at the end the
following sentence: ``For the Department of Defense, such Phase
III awards shall be made in conformance with defense and
national security missions and programs.'';
(12) in subsection (x)(2)(B), by inserting ``(or its
successor)'' before the period at the end;
(13) in subsection (aa)(4)--
(A) in the paragraph heading, by inserting ``or
Project'' after ``Topic''; and
(B) by inserting ``or project'' after ``topic'';
(14) in subsection (bb)(1), by striking ``another Federal
agency'' and inserting ``one or more other Federal agencies'';
(15) in subsection (ff)(1)--
(A) by striking ``1 additional Phase II SBIR award
or Phase II STTR award'' and inserting ``one or more
additional Phase II SBIR awards or Phase II STTR
awards''; and
(B) by inserting ``from one or more Federal
agencies'' after ``project''; and
(16) in subsection (qq)(2), by adding at the end the
following new subparagraph:
``(C) Implementation deadline.--The head of each
Federal agency shall implement the requirements
described under subparagraph (A) not later than
December 31, 2017.''.
SEC. 507. EXTENSION OF DEFENSE RESEARCH AND DEVELOPMENT RAPID
INNOVATION PROGRAM.
Subsection (d) of section 1073 of the Ike Skeleton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 124 Stat.
4366; 10 U.S.C. 2359 note) is amended by striking ``through 2015'' and
inserting ``through 2020''.
TITLE VI--REPEAL OR REVISION OF REPORTING REQUIREMENTS
SEC. 601. REPEAL OF CERTAIN REPORTING REQUIREMENTS.
(a) Reports Related to Military Personnel Issues (Other Than Health
Care).--
(1) Report on voting assistance programs effectiveness and
compliance.--Section 1566(c) of title 10, United States Code,
is amended--
(A) by striking ``(1)'' after the subsection
heading; and
(B) by striking paragraphs (2) and (3).
(2) Report on aviation officer retention bonuses.--Section
301b(i) of title 37, United States Code, is amended--
(A) by striking ``(1)'' after the subsection
heading; and
(B) by striking paragraph (2).
(3) Report on foreign language proficiency incentive pay.--
Section 316a of title 37, United States Code, as amended by
section 615(5) of this Act, is amended--
(A) by striking subsection (f); and
(B) by redesignating subsection (g) as subsection
(f).
(4) Report on use of waiver authority for military service
academy appointments.--Section 553 of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10
U.S.C. 4346 note) is amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection
(e).
(5) Report on increase in junior reserve officers' training
corps units.--Subsection (e) of section 548 of the Duncan
Hunter National Defense Authorization Act for Fiscal Year 2009
(Public Law 110-417; 122 Stat. 4466) is repealed.
(6) Report on implementation of yellow ribbon reintegration
program.--
(A) Reporting requirement.--Section 582(e) of the
National Defense Authorization Act for Fiscal Year 2008
(Public Law 110-181; 10 U.S.C. 10101 note) is amended
by striking paragraph (4).
(B) Conforming repeal.--Section 597 of the National
Defense Authorization Act for Fiscal Year 2010 (Public
Law 111-84; 10 U.S.C. 10101 note) is repealed.
(7) Report on local educational agency assistance related
to dod activities.--Section 574 of the John Warner National
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364; 20 U.S.C. 7703b note) is amended--
(A) by striking subsection (c); and
(B) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(b) Reports Related to Health Care.--
(1) Reports on health protection quality and health
assessment data.--
(A) Section 1073b of title 10, United States Code,
is repealed.
(B) The table of sections at the beginning of
chapter 55 of title 10, United States Code, is amended
by striking the item relating to section 1073b.
(2) Report on standards of facilities.--Section 1648 of the
Wounded Warrior Act (10 U.S.C. 1071 note) is amended by
striking subsection (f).
(3) Report on inspections of facilities.--Section 1662 of
the Wounded Warrior Act (10 U.S.C. 1071 note) is amended--
(A) by striking ``(a) Required Inspections of
Facilities.--''; and
(B) by striking subsection (b).
(4) Report on inspections of other facilities.--Section
3307 of the U.S. Troop Readiness, Veterans' Care, Katrina
Recovery, and Iraq Accountability Appropriations Act, 2007 (10
U.S.C. 1073 note) is amended--
(A) by striking subsection (d); and
(B) by redesignating subsection (e) as subsection
(d).
(c) Reports Related to Readiness.--
(1) Report on arsenal support program initiative.--Section
323 of the Floyd Spence National Defense Authorization Act for
Fiscal Year 2001 (Public Law 106-398; 10 U.S.C. 4551 note) is
amended by striking subsection (g).
(2) GAO review of contractor-operated civil engineering
supply stores program.--Section 345 of the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999 (Public
Law 105-26; 112 Stat. 1978) is amended--
(A) by striking subsection (d); and
(B) by redesignating subsection (e) as subsection
(d).
(d) Reports Related to Naval Vessels and Merchant Marine.--
(1) Report on naming of naval vessels.--Section 7292 of
title 10, United States Code, is amended by striking subsection
(d).
(2) Report on transfer of vessels stricken from naval
vessel register.--Section 7306 of title 10, United States Code,
is amended--
(A) by striking subsection (d); and
(B) by redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
(3) Reports on mission modules of littoral combat ship.--
Section 126 of the National Defense Authorization Act for
Fiscal Year 2013 (Public Law 112-239) is amended--
(A) by striking ``(b) Additional Quarterly
Reports.--''; and
(B) by striking subsection (b).
(4) Report on cost estimate of cvn-79.--Section 122 of the
John Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109-364; 120 Stat. 2104), as most recently
amended by section 121 of the National Defense Authorization
Act for Fiscal Year 2014 (Public Law 113-66), is amended by
striking subsection (f).
(5) Report on assessments of first ship of a shipbuilding
program.--Section 124 of the National Defense Authorization Act
for Fiscal Year 2008 is repealed.
(6) Annual report of federal maritime commission.--
(A) Section 50111 of title 46, United States Code,
is repealed.
(B) The table of sections at the beginning of
chapter 501 of title 46, United States Code, is amended
by striking the item relating to section 50111.
(7) Discretionary reports no longer needed.--The Secretary
of the Navy is not required to submit to the congressional
defense committees--
(A) a report, or updates to such a report, on open
architecture as described in Senate Report 110-077; or
(B) a monthly report on Ford class aircraft
carriers not otherwise required by law.
(e) Reports Related to Nuclear, Proliferation, and Related
Matters.--
(1) Report on proliferation security initiative.--Section
1821(b) of the Implementing Recommendations of the 9/11
Commission Act of 2007 (50 U.S.C. 2911) is amended--
(A) by striking ``(1) In General.--''; and
(B) by striking paragraphs (2) and (3).
(2) Report on warhead life extension options.--The National
Defense Authorization Act for Fiscal Year 2014 (Public Law 113-
66) is amended by repealing section 3118.
(3) Report on nuclear weapons council.--Section 179 of
title 10, United States Code, is amended by striking subsection
(g).
(4) Briefings on dialogue between united states and russian
federation on nuclear arms.--Section 1282 of the National
Defense Authorization Act for Fiscal Year 2013 (22 U.S.C. 5951
note) is amended--
(A) by striking subsection (a); and
(B) by redesignating subsections (b) and (c) as
subsections (a) and (b), respectively.
(5) Implementation plan for whole-of- government vision
prescribed in the national security strategy.--Section 1072 of
the National Authorization Act for Fiscal Year 2012 (50 U.S.C.
3043 note) is amended--
(A) by striking ``(a) Implementation Plan.--'';
(B) by striking subsection (b); and
(C) by redesignating subsection (c) as subsection
(b).
(f) Reports Related to Missile Defense.--
(1) Report on ground-based midcourse defense program.--
Section 234 of the National Defense Authorization Act for
Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1340) is
amended--
(A) by striking ``(a) Sense of Congress.--''; and
(B) by striking subsection (b).
(2) Report on missile defense executive board activities.--
Section 232 of the National Defense Authorization Act for
Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1339) is
amended--
(A) by striking subsection (b); and
(B) by redesignating subsection (c) as subsection
(b).
(g) Reports Related to Acquisition.--
(1) Report on foreign purchases.--Section 8305 of title 41,
United States Code, is repealed.
(2) Report on cost assessment activities.--Section 2334 of
title 10, United States Code, is amended--
(A) by striking subsection (f); and
(B) by redesignating subsection (g) as subsection
(f).
(3) Report on performance assessments and root cause
analyses.--Section 2438 of title 10, United States Code, is
amended by striking subsection (f).
(h) Reports Related to Civilian Personnel.--
(1) Report on experimental program for scientific and
technical personnel.--Section 1101 of the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999 (Public
Law 105-261; 112 Stat. 2139) is amended by striking subsection
(g).
(2) Report on pilot program for exchange of information
technology personnel.--Section 1110 of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123
Stat. 2493) is amended--
(A) by striking subsection (i);
(B) by redesignating subsection (j) as subsection
(i); and
(C) in subsection (i) (as redesignated by
subparagraph (B)), by amending paragraph (2) to read as
follows:
``(2) any employee whose assignment is allowed to continue
by virtue of paragraph (1) shall be taken into account for
purposes of the numerical limitation under subsection (h).''.
(3) GAO report with respect to department of defense
performance management and workforce incentive system.--Section
9902(h) of title 5, United States Code, is amended--
(A) in paragraph (1)(B), by striking ``and the
Comptroller General,'';
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph
(2).
(i) Miscellaneous Reports.--
(1) Report on rewards for combating terrorism.--Section
127b of title 10, United States Code, is amended--
(A) by striking subsection (f); and
(B) by redesignating subsection (g) as subsection
(f).
(2) Report on technological maturity and integration risk
of critical technologies.--Section 138b of title 10, United
States Code, is amended--
(A) by striking paragraph (2); and
(B) by striking ``(b)(1)'' and inserting ``(b)''.
(3) Report on systems engineering.--Section 139b(d) of
title 10, United States Code, is amended--
(A) by striking paragraph (2);
(B) by redesignating paragraph (3) as paragraph
(2);
(C) in paragraph (2), as redesignated by
subparagraph (B)--
(i) by striking ``or (2)'';
(ii) in subparagraph (A), by striking
``systems engineering master plans and'';
(iii) in subparagraph (B), by striking ``,
systems engineering master plans,'';
(iv) in subparagraph (C), by striking
``systems engineering, development planning,''
and inserting ``development planning''; and
(v) by redesignating subparagraph (D) as
subparagraph (F);
(D) by transferring subparagraphs (A) and (B) of
paragraph (4) to paragraph (2), as so redesignated, and
redesignating those subparagraphs as subparagraphs (D)
and (E), respectively; and
(E) by striking paragraph (4).
(4) Report on humanitarian demining assistance authority.--
Section 407 of title 10, United States Code, is amended--
(A) by striking subsection (d); and
(B) by redesignating subsection (e) as subsection
(d).
(5) Report on regional defense counterterrorism fellowship
program.--Section 2249c of title 10, United States Code, is
amended by striking subsection (c).
(6) Report on space science and technology strategy.--
Section 2272(a) of title 10, United States Code, is amended by
striking paragraph (5).
(7) Report on darpa.--
(A) Repeal.--Section 2352 of title 10, United
States Code, is repealed.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 139 of title 10, United States
Code, is amended by striking the item relating to
section 2352.
(8) Report on airlift requirements.--Section 112 of the
National Defense Authorization Act for Fiscal Year 2013 (Public
Law 112-239; 126 Stat. 1654) is repealed.
(9) Report on interagency collaboration on unmanned
aircraft systems.--Section 1052(b) of the National Defense
Authorization Act for Fiscal Year 2013 (Public Law 112-239; 49
U.S.C. 40101 note) is amended by striking paragraph (4).
(10) Report on in-kind payments.--Section 2805 of the
National Defense Authorization Act for Fiscal Year 2013 (Public
Law 112-239; 126 Stat. 2149) is repealed.
(11) Report on airborne signals intelligence, surveillance,
and reconnaissance capabilities.--Section 112(b) of the Ike
Skelton National Defense Authorization Act for Fiscal Year 2011
(Public Law 111-383; 124 Stat. 4153) is amended--
(A) by striking paragraph (3); and
(B) by redesignating paragraph (4) as paragraph
(3).
(12) Reports on status of navy next generation enterprise
networks program.--Section 1034 of the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 (Public Law 110-
417; 122 Stat. 4593) is repealed.
TITLE VII--PLANNING, BUDGETING, CONTRACTING, OVERSIGHT, AND OTHER
RELATED MATTERS
SEC. 701. ADDITIONAL RESPONSIBILITY FOR DIRECTOR OF OPERATIONAL TEST
AND EVALUATION.
(a) Additional Responsibility.--Section 139 of title 10, United
States Code, is amended--
(1) by redesignating subsections (c), (d), (e), (f), (g),
(h), (i), (j), and (k) as subsections (d), (e), (f), (g), (h),
(i), (j), (k), and (l), respectively; and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c) The Director shall consider the potential for increases in
program cost estimates or delays in schedule estimates in the
implementation of policies, procedures, and activities related to
operational test and evaluation and shall take appropriate action to
ensure that operational test and evaluation activities do not
unnecessarily increase program costs or impede program schedules.''.
(b) Conforming Amendment.--Section 196(c)(1)(A)(ii) of such title
is amended by striking ``section 139(i)'' and inserting ``section
139(k)''.
SEC. 702. REPORT ON LINKING AND STREAMLINING REQUIREMENTS, ACQUISITION,
AND BUDGET PROCESSES WITHIN ARMED FORCES.
(a) Reports.--Not later than 180 days after the date of the
enactment of this Act, the Chief of Staff of the Army, the Chief of
Naval Operations, the Chief of Staff of the Air Force, and the
Commandant of the Marine Corps shall each submit to the congressional
defense committees a report on efforts to link and streamline the
requirements, acquisition, and budget processes within the Army, Navy,
Air Force, and Marine Corps, respectively.
(b) Matters Included.--Each report under subsection (a) shall
include the following:
(1) A specific description of--
(A) the management actions the Chief concerned or
the Commandant has taken or plans to take to link and
streamline the requirements, acquisition, and budget
processes of the Armed Force concerned;
(B) any reorganization or process changes that will
link and streamline the requirements, acquisition, and
budget processes of the Armed Force concerned; and
(C) any cross-training or professional development
initiatives of the Chief concerned or the Commandant.
(2) For each description under paragraph (1)--
(A) the specific timeline associated with
implementation;
(B) the anticipated outcomes once implemented; and
(C) how to measure whether or not those outcomes
are realized.
(3) Any other matters the Chief concerned or the Commandant
considers appropriate.
SEC. 703. REQUIRED REVIEW OF ACQUISITION-RELATED FUNCTIONS OF THE
CHIEFS OF STAFF OF THE ARMED FORCES.
(a) Review Required.--The Chief of Staff of the Army, the Chief of
Naval Operations, the Chief of Staff of the Air Force, and the
Commandant of the Marine Corps shall conduct a review of their current
individual authorities provided in sections 3033, 5033, 8033, and 5043
of title 10, United States Code, and other relevant statutes and
regulations related to defense acquisitions for the purpose of
developing such recommendations as the Chief concerned or the
Commandant considers necessary to further or advance the role of the
Chief concerned or the Commandant in the development of requirements,
acquisition processes, and the associated budget practices of the
Department of Defense.
(b) Reports.--Not later than September 15, 2015, the Chief of Staff
of the Army, the Chief of Naval Operations, the Chief of Staff of the
Air Force, and the Commandant of the Marine Corps shall each submit to
the congressional defense committees a report containing, at a minimum,
the following:
(1) The recommendations developed by the Chief concerned or
the Commandant under subsection (a) and other results of the
review conducted under such subsection.
(2) The actions the Chief concerned or the Commandant is
taking, if any, within the Chief's or Commandant's existing
authority to implement such recommendations.
SEC. 704. FAR COUNCIL MEMBERSHIP FOR ADMINISTRATOR OF SMALL BUSINESS
ADMINISTRATION.
(a) Addition of Administrator of Small Business Administration to
Federal Acquisition Regulatory Council.--Section 1302(b)(1) of title
41, United States Code, is amended--
(1) by striking ``and'' at the end of subparagraph (C);
(2) by striking the period and inserting ``; and'' at the
end of subparagraph (D); and
(3) by adding at the end the following new subparagraph:
``(E) the Administrator of the Small Business
Administration.''.
(b) Conforming Amendments.--Such title is amended--
(1) in section 1303(a)(1)--
(A) by striking ``and the Administrator of National
Aeronautics and Space,'' and inserting ``the
Administrator of National Aeronautics and Space, and
the Administrator of the Small Business
Administration,''; and
(B) by striking ``and the National Aeronautics and
Space Act of 1958 (42 U.S.C. 2451 et seq.),'' and
inserting ``the National Aeronautics and Space Act of
1958 (42 U.S.C. 2451 et seq.), and the Small Business
Act (15 U.S.C. 631 et seq.),''; and
(2) in section 1121(d), by striking ``and the General
Services Administration'' and inserting ``the General Services
Administration, and the Small Business Administration''.
SEC. 705. INDEPENDENT STUDY OF MATTERS RELATED TO BID PROTESTS.
(a) Requirement for Study.--Not later than 60 days after the date
of the enactment of this Act, the Secretary of Defense shall enter into
a contract with an independent research entity that is a not-for-profit
entity or a federally funded research and development center with
appropriate expertise and analytical capability to carry out a
comprehensive study of factors leading to the filing of bid protests.
The study shall examine issues such as the following:
(1) The variable influences on the net benefit (monetary
and non-monetary) to contractors either filing a protest or
indicating intent to file a protest.
(2) The extent to which protests are filed by incumbent
contractors for purposes of extending a contract's period of
performance.
(3) The extent to which companies file protests even if
they do not contest that there was an error in the procurement
process.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the independent entity shall provide to the
Secretary and the congressional defense committees a report on the
results of the study, along with any recommendations it may have.
SEC. 706. PROCUREMENT OF COMMERCIAL ITEMS.
(a) Delegation of Responsibility for Commercial Item
Determinations.--Section 2375 of title 10, United States Code, is
amended by adding at the end the following new subsection:
``(d) Delegation of Responsibility Within Department of Defense for
Commercial Item Determinations.--(1) The Secretary of Defense shall
designate an individual within the Department of Defense to be
responsible for making determinations that, for the purpose of
procurement of an item by a component of the Department of Defense, an
item is a commercial item as described in section 103 of title 41. The
Secretary shall ensure that the designated individual receives
sufficient--
``(A) staff and resources so that determinations are made
in an expedient manner; and
``(B) staff support or authorities (or both) to provide
technical expertise on the functionality of an item subject to
determination and expertise in conducting market research
related to the item.
``(2) The Secretary of Defense shall provide public access to
Department of Defense determinations regarding whether an item is a
commercial item for the purpose of procurement by a component of the
Department of Defense. Each determination shall include a summary
explanation of the basis for the determination.''.
(b) Commercial Item Exception to Submission of Cost and Pricing
Data.--Section 2306a(b) of title 10, United States Code, is amended by
adding at the end the following new paragraph:
``(4) Consideration of determination of commercial item.--
For purposes of applying the commercial item exception under
paragraph (1)(B) to the required submission of certified cost
or pricing data, the contracting officer shall use the
determinations made by the individual designated by the
Secretary of Defense under section 2375(d) of this title.''.
(c) Implementation.--The Secretary of Defense shall ensure that the
requirements of sections 2375(d) and 2306a(b)(4) of title 10, United
States Code, as added by this section, are implemented not later than
180 days after the date of the enactment of this Act to ensure that
sufficient capability is available within the Department of Defense to
make necessary determinations in a timely manner.
SEC. 707. AMENDMENT RELATING TO MULTIYEAR CONTRACT AUTHORITY FOR
ACQUISITION OF PROPERTY.
Paragraph (1) of section 2306b(a) of title 10, United States Code,
is amended to read as follows:
``(1) That there is a reasonable expectation that the use
of such a contract will result in lower total anticipated costs
of carrying out the program than if the program were carried
out through annual contracts.''.
SEC. 708. USE OF RECENT PRICES PAID BY THE GOVERNMENT IN THE
DETERMINATION OF PRICE REASONABLENESS.
Section 2306a(b) of title 10, United States Code, as amended by
section 706, is further amended by adding at the end the following new
paragraph:
``(5) A contracting officer may consider evidence provided
by an offeror of recent purchase prices paid by the Government
for identical or similar commercial items in establishing price
reasonableness on a subsequent purchase if the contracting
officer is satisfied that the prices previously paid remain a
valid reference for comparison after considering the totality
of other relevant factors such as the time elapsed since the
prior purchase and any differences in the quantities purchased
or applicable terms and conditions.''.
SEC. 709. CODIFICATION OF OTHER TRANSACTION AUTHORITY FOR CERTAIN
PROTOTYPE PROJECTS.
(a) In General.--Section 845 of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note) is
transferred to chapter 139 of title 10, United States Code, inserted so
as to appear after section 2371a, redesignated as section 2371b, and
amended--
(1) by amending the section heading to read as follows:
``Sec. 2371b. Authority of the Advanced Research Projects Agency to
carry out certain prototype projects'';
(2) by striking ``of title 10, United States Code'' each
place it appears and inserting ``of this title'';
(3) by striking ``of title 41, United States Code'' each
place it appears and inserting ``of title 41'';
(4) by amending subparagraph (B) of subsection (d)(1) to
read as follows:
``(B) all parties to the transaction other than the Federal
Government are innovative small business and nontraditional
contractors with unique capabilities relevant to the prototype
project.''; and
(5) by striking subsection (i).
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2371a the following new item:
``2371b. Authority of the Advanced Research Projects Agency to carry
out certain prototype projects.''.
SEC. 710. AMENDMENTS TO CERTAIN ACQUISITION THRESHOLDS.
(a) Simplified Acquisition Threshold Generally.--Section 134 of
title 41, United States Code, is amended by striking ``$100,000'' and
inserting ``$500,000''.
(b) Micro-Purchase Threshold.--Section 1902(a) of title 41, United
States Code, is amended by striking ``$3,000'' and inserting
``$5,000''.
(c) Special Emergency Procurement Authority.--Section 1903(b)(2) of
title 41, United States Code, is amended--
(1) in subparagraph (A), by striking ``$250,000'' and
inserting ``$750,000''; and
(2) in subparagraph (B), by striking ``$1,000,000'' and
inserting ``$1,500,000''.
(d) Small Business Concern Reservation.--Section 15(j)(1) of the
Small Business Act (15 U.S.C. 644(j)(1)) is amended by striking
``$100,000'' and inserting ``$500,000''.
SEC. 711. REVISION OF METHOD OF ROUNDING WHEN MAKING INFLATION
ADJUSTMENT OF ACQUISITION-RELATED DOLLAR THRESHOLDS.
Section 1908(e)(2) of title 41, United States Code, is amended--
(1) in the matter preceding subparagraph (A), by striking
``on the day before the adjustment'' and inserting ``as
calculated under paragraph (1)'';
(2) by striking ``and'' at the end of subparagraph (C); and
(3) by striking subparagraph (D) and inserting the
following new subparagraphs:
``(D) not less than $1,000,000, but less than
$10,000,000, to the nearest $500,000;
``(E) not less than $10,000,000, but less than
$100,000,000, to the nearest $5,000,000;
``(F) not less than $100,000,000, but less than
$1,000,000,000, to the nearest $50,000,000; and
``(G) $1,000,000,000 or more, to the nearest
$500,000,000.''.
SEC. 712. REPEAL OF REQUIREMENT FOR STAND-ALONE MANPOWER ESTIMATES FOR
MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Repeal of Requirement.--Subsection (a)(1) of section 2434 of
title 10, United States Code, is amended by striking ``and a manpower
estimate for the program have'' and inserting ``has''.
(b) Conforming Amendments Relating to Regulations.--Subsection (b)
of such section is amended--
(1) by striking paragraph (2);
(2) by striking ``shall require--'' and all that follows
through ``that the independent'' and inserting ``shall require
that the independent'';
(3) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively, and realigning those
paragraphs so as to be two ems from the left margin; and
(4) in paragraph (2), as so redesignated--
(A) by striking ``and operations and support,'' and
inserting ``operations and support, and manpower to
operate, maintain, and support the program upon full
operational deployment,''; and
(B) by striking ``; and'' at the end and inserting
a period.
(c) Clerical Amendments.--
(1) Section heading.--The heading of such section is
amended to read as follows:
``Sec. 2434. Independent cost estimates''.
(2) Table of sections.--The item relating to such section
in the table of sections at the beginning of chapter 144 of
such title is amended to read as follows:
``2434. Independent cost estimates.''.
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