[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 979 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 979

         To promote defense innovation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 12, 2025

   Mr. Banks introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
         To promote defense innovation, 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 ``Buying Faster than the Enemy Act of 
2025''.

SEC. 2. MODIFICATIONS TO COMMERCIAL SOLUTIONS OPENINGS.

    Section 3458 of title 10, United States Code, is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Authority.--The Secretary of Defense and the Secretaries of 
the military departments may acquire commercial products, commercial 
services, and nondevelopmental items through a competitive selection of 
proposals resulting from a general solicitation and the peer review, 
technical review, or operational review (as appropriate) of such 
proposals, and may issue, without further justification, follow-on 
contract awards or agreements, including sole source awards or 
agreements, to the recipient.'';
            (2) by redesignating subsection (c), (d), and (e) as 
        subsections (d), (e), and (h), respectively;
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Sole-Source Follow-On.--The Secretary of Defense and the 
Secretaries of the military departments may issue, without further 
justification, follow-on contract awards or agreements, including sole 
source awards or agreements, to a recipient competitively selected 
under subsection (a).'';
            (4) in paragraph (1) of subsection (d), as redesignated by 
        paragraph (2) of this section, by striking ``the Under 
        Secretary of Defense for Acquisition and Sustainment or the 
        relevant service acquisition executive'' and inserting ``the 
        head of the contracting activity (or the head of the 
        contracting activity's designated delegate)'';
            (5) in subsection (e), as so redesignated--
                    (A) by striking ``(1)''; and
                    (B) by striking paragraph (2); and
            (6) by inserting after such subsection, as so redesignated, 
        the following new subsection:
    ``(f) Nontraditional Vehicle.--(1) The Secretary of Defense shall 
establish an open topic and enduring general solicitation described in 
subsection (a) for each systems command, science and technology 
reinvention laboratory, and portfolio acquisition executive.
    ``(2) The preferred model for developing and producing operational 
military capabilities using general solicitations in paragraph (1) 
shall be the urgent capability acquisition, middle tier of acquisition, 
software acquisition, or services acquisition pathways of the 
Department of Defense Adaptive Acquisition Framework described in 
Department of Defense Instructions 5000.85 and 5000.2.''.

SEC. 3. LIMITATION ON REQUIRED FLOWDOWN OF CONTRACT CLAUSES TO 
              SUBCONTRACTORS PROVIDING COMMERCIAL PRODUCTS OR 
              COMMERCIAL SERVICES.

    (a) Contract Clauses Required in the Federal Acquisition 
Regulation.--Chapter 247 of title 10, United States Code, is amended by 
adding at the end the following new section:
``Sec. 3459. Limitation on required flowdown of contract clauses to 
              subcontractors providing commercial products or 
              commercial services
    ``(a) In General.--The Secretary of Defense may not require that a 
clause be included in a subcontract for commercial products and 
services other than a clause required by a provision of law that is on 
the list required by section 3452 of this title.
    ``(b) Single Clause Requirement.--The Secretary of Defense shall 
provide for implementation of all provisions of law applicable to 
subcontracts for commercial products and services through--
            ``(1) a single clause applicable to contracts for 
        commercial products and services; and
            ``(2) a single clause applicable to contracts for 
        noncommercial products and services.''.
    (b) Effective Dates.--
            (1) In general.--The requirements under section 3459 of 
        title 10, United States Code, as added by subsection (a), shall 
        apply with respect to solicitations issued by the Department of 
        Defense after the end of the 120-day period beginning on the 
        date of the enactment of this Act.
            (2) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall amend 
        the Defense Federal Acquisition Regulation Supplement to 
        implement section 3459 of title 10, United States Code, as 
        added by subsection (a).

SEC. 4. MODIFICATIONS TO RELATIONSHIP OF OTHER PROVISIONS OF LAW TO 
              PROCUREMENT OF COMMERCIAL PRODUCTS AND COMMERCIAL 
              SERVICES.

    Section 3452 of title 10, United States Code, is amended by 
striking subsections (b) through (f) and inserting the following new 
subsections:
    ``(b) Applicability of Defense-Unique Statutes to Contracts for 
Commercial Products and Commercial Services.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on 
government-wide acquisition regulations, policies, or executive orders 
expressly required in law that are applicable to contracts for the 
procurement of commercial products and commercial services by the 
Department of Defense.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after October 13, 1994, shall not be 
included on the list of applicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition and Sustainment makes a written 
determination that it would be in the best interest of the Department 
of Defense to apply the provision or contract clause requirement to the 
contract for the procurement of commercial products and commercial 
services.
    ``(c) Applicability of Defense-Unique Statutes to Subcontracts for 
Commercial Products and Commercial Services.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on 
government-wide acquisition regulations, policies, or executive orders 
expressly required in law that are applicable to subcontracts for the 
procurement of commercial products and commercial services. A provision 
of law or contract clause requirement properly included on the list 
pursuant to paragraph (2) must apply to purchases of commercial 
products and commercial services by the Department of Defense.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after October 13, 1994, shall not be 
included on the list of applicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition and Sustainment makes a written 
determination that it would be in the best interest of the Department 
of Defense to apply the provision or contract clause requirement to the 
subcontract for the procurement of commercial products and commercial 
services.
    ``(3) In this subsection, the term `subcontract'--
            ``(A) includes a transfer of commercial products and 
        commercial services between divisions, subsidiaries, or 
        affiliates of a contractor or subcontractor; and
            ``(B) does not include agreements entered into by a 
        contractor for the supply of commodities that are intended for 
        use in the performance of multiple contracts with the 
        Department of Defense and other parties and are not 
        identifiable to any particular contract.
    ``(4) This subsection does not authorize the waiver of the 
applicability of any provision of law or contract clause requirement 
with respect to any first-tier subcontract under a contract with a 
prime contractor reselling or distributing commercial products and 
commercial services of another contractor without adding value.
    ``(d) Applicability of Defense-Unique Statutes to Contracts for 
Commercially Available, Off-the-Shelf Items.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of defense-
unique provisions of law and of contract clause requirements based on 
government-wide acquisition regulations, policies, or executive orders 
expressly required in law that are applicable to subcontracts for the 
procurement of commercially available off-the-shelf items by the 
Department of Defense.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after October 13, 1994, shall not be 
included on the list of applicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition and Sustainment makes a written 
determination that it would be in the best interest of the Department 
of Defense to apply the provision or contract clause requirement to the 
procurement of commercially available off-the-shelf items.
    ``(e) Covered Provision of Law or Contract Clause Requirement.--A 
provision of law or contract clause requirement referred to in 
subsections (b)(2), (c)(2), and (d)(2) is a provision of law or 
contract clause requirement that the Under Secretary of Defense for 
Acquisition and Sustainment determines sets forth policies, procedures, 
requirements, or restrictions for the procurement of property or 
services by the Federal Government, except for a provision of law or 
contract clause requirement that--
            ``(1) provides for criminal or civil penalties;
            ``(2) requires that certain articles be bought from United 
        States sources pursuant to chapter 385 of this title or section 
        5949 of the National Defense Authorization Act for Fiscal Year 
        2023 (Public Law 117-263; 41 U.S.C. 4713 note); or
            ``(3) specifically refers to this section and provides 
        that, notwithstanding this section, it shall be applicable to 
        contracts for the procurement of commercial products and 
        commercial services.''.

SEC. 5. NONTRADITIONAL DEFENSE CONTRACTOR COMMERCIAL SOLUTIONS OPENING.

    Section 3458 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(j) Nontraditional Vehicle.--(1) The Secretary of Defense shall 
establish not fewer than 5 consortia to conduct prototype projects and 
follow-on production under the authority of section 4022 of this title 
for each systems command and each portfolio acquisition executive.
    ``(2) The preferred model for developing and producing operational 
military capabilities using the consortia in paragraph (1) shall be the 
urgent capability acquisition, middle tier of acquisition, software 
acquisition, or services acquisition pathways of the Department of 
Defense Adaptive Acquisition Framework described in Department of 
Defense Instruction 5000.2.
    ``(3) Nothing in this subsection shall be construed to limit the 
number of consortia established by the Secretary of Defense.''.

SEC. 6. ADVANCE PAYMENTS.

    Section 3805(c) of title 10, United States Code, is amended by 
striking ``not more than 15 percent of the contract price'' and 
inserting ``not more than 30 percent of the contract price''.

SEC. 7. MODIFICATIONS TO COMMERCIAL PRODUCT AND COMMERCIAL SERVICE 
              DETERMINATIONS BY DEPARTMENT OF DEFENSE.

    Section 3456 of title 10, United States Code, is amended by 
striking subsections (a) through (c) and inserting the following new 
subsections:
    ``(a) In General.--The Secretary of Defense shall create a default 
determination that products and services acquired by the Department of 
Defense are commercial and shall be acquired using commercial 
procedures, and, to the maximum extent practicable, general 
solicitation procedures under section 3458 of this title, unless 
determined to be non-commercial by the Department of Defense 
contracting officer.
    ``(b) Determinations Regarding the Non-Commercial Nature of 
Products or Services.--A defense-unique development product or service 
may not be procured if there is a commercial product or service, with 
or without customization, that meets the minimum requirements of the 
Department of Defense. In making a determination whether a particular 
product or service offered by a contractor is non-commercial and does 
not meet any definition for commercial products or commercial services, 
a contracting officer of the Department of Defense shall submit a 
written memorandum summarizing the determination for approval by the 
head of contracting activity, prior to awarding the contract, and 
provide it to the contractor or subcontractor offering the product or 
service for which such determination is summarized in such memorandum. 
The memorandum shall include--
            ``(1) a detailed justification why the product or 
        commercial service was determined to be noncommercial including 
        the results of market research; and
            ``(2) a signed determination by the program manager that 
        the requirement could not be reasonably changed to accommodate 
        a commercial product or commercial service.
    ``(c) Definition.--The term `defense-unique development' means a 
Department of Defense-financed development, either to repurpose a 
commercial product or solution or to develop a new product or solution, 
to provide a defense-unique capability.''.
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