Text: S.2943 — 114th Congress (2015-2016)All Information (Except Text)

Text available as:

Shown Here:
Enrolled Bill

 
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2943 Enrolled Bill (ENR)]

        S.2943

                     One Hundred Fourteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
           the fourth day of January, two thousand and sixteen


                                 An Act


 
To authorize appropriations for fiscal year 2017 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
         strengths for such fiscal year, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2017''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
    (a) Divisions.--This Act is organized into five divisions as 
follows:
        (1) Division A--Department of Defense Authorizations.
        (2) Division B--Military Construction Authorizations.
        (3) Division C--Department of Energy National Security 
    Authorizations and Other Authorizations.
        (4) Division D--Funding Tables.
        (5) Division E--Uniform Code of Military Justice Reform.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Authorization of appropriations.

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

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

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

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Reports and Other Matters

Sec. 231. Strategy for assured access to trusted microelectronics.
Sec. 232. Pilot program on evaluation of commercial information 
          technology.
Sec. 233. Pilot program for the enhancement of the research, 
          development, test, and evaluation centers of the Department of 
          Defense.
Sec. 234. Pilot program on modernization and fielding of electromagnetic 
          spectrum warfare systems and electronic warfare capabilities.
Sec. 235. Pilot program on disclosure of certain sensitive information 
          to federally funded research and development centers.
Sec. 236. Pilot program on enhanced interaction between the Defense 
          Advanced Research Projects Agency and the service academies.
Sec. 237. Independent review of F/A-18 physiological episodes and 
          corrective actions.
Sec. 238. B-21 bomber development program accountability matrices.
Sec. 239. Study on helicopter crash prevention and mitigation 
          technology.
Sec. 240. Strategy for Improving Electronic and Electromagnetic Spectrum 
          Warfare Capabilities.
Sec. 241. Sense of Congress on development and fielding of fifth 
          generation airborne systems.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Authorization of appropriations.

                   Subtitle B--Energy and Environment

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

                  Subtitle C--Logistics and Sustainment

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

                           Subtitle D--Reports

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

                        Subtitle E--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                Subtitle B--Reserve Component Management

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

                 Subtitle C--General Service Authorities

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

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

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

        Subtitle E--Military Justice and Legal Assistance Matters

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

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

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

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

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

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

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

                   Subtitle I--Decorations and Awards

 Sec. 581. Posthumous advancement of Colonel George E. ``Bud'' Day, 
          United States Air Force, on the retired list.
Sec. 582. Authorization for award of medals for acts of valor during 
          certain contingency operations.
Sec. 583. Authorization for award of the Medal of Honor to Gary M. Rose 
          and James C. McCloughan for acts of valor during the Vietnam 
          War.
Sec. 584. Authorization for award of Distinguished-Service Cross to 
          First Lieutenant Melvin M. Spruiell for acts of valor during 
          World War II.
Sec. 585. Authorization for award of the Distinguished Service Cross to 
          Chaplain (First Lieutenant) Joseph Verbis LaFleur for acts of 
          valor during World War II.
Sec. 586. Review regarding award of Medal of Honor to certain Asian 
          American and Native American Pacific Islander war veterans.

           Subtitle J--Miscellaneous Reports and Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

        Part I--Amendments in Connection With Retired Pay Reform

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

                         Part II--Other Matters

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

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

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

        Subtitle A--Reform of TRICARE and Military Health System

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

                 Subtitle B--Other Health Care Benefits

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

                 Subtitle C--Health Care Administration

Sec. 721. Authority to convert military medical and dental positions to 
          civilian medical and dental positions.
Sec. 722. Prospective payment of funds necessary to provide medical care 
          for the Coast Guard.
Sec. 723. Reduction of administrative requirements relating to automatic 
          renewal of enrollments in TRICARE Prime.
Sec. 724. Modification of authority of Uniformed Services University of 
          the Health Sciences to include undergraduate and other medical 
          education and training programs.
Sec. 725. Adjustment of medical services, personnel authorized 
          strengths, and infrastructure in military health system to 
          maintain readiness and core competencies of health care 
          providers.
Sec. 726. Program to eliminate variability in health outcomes and 
          improve quality of health care services delivered in military 
          medical treatment facilities.
Sec. 727. Acquisition strategy for health care professional staffing 
          services.
Sec. 728. Adoption of core quality performance metrics.
Sec. 729. Improvement of health outcomes and control of costs of health 
          care under TRICARE program through programs to involve covered 
          beneficiaries.
Sec. 730. Accountability for the performance of the military health 
          system of certain leaders within the system.
Sec. 731. Establishment of advisory committees for military treatment 
          facilities.

                  Subtitle D--Reports and Other Matters

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

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

              Subtitle A--Acquisition Policy and Management

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

          Subtitle B--Department of Defense Acquisition Agility

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

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

Sec. 811. Modified restrictions on undefinitized contractual actions.
Sec. 812. Amendments relating to inventory and tracking of purchases of 
          services.
Sec. 813. Use of lowest price technically acceptable source selection 
          process.
Sec. 814. Procurement of personal protective equipment.
Sec. 815. Amendments related to detection and avoidance of counterfeit 
          electronic parts.
Sec. 816. Amendments to special emergency procurement authority.
Sec. 817. Compliance with domestic source requirements for footwear 
          furnished to enlisted members of the Armed Forces upon their 
          initial entry into the Armed Forces.
Sec. 818. Extension of authority for enhanced transfer of technology 
          developed at Department of Defense laboratories.
Sec. 819. Modified notification requirement for exercise of waiver 
          authority to acquire vital national security capabilities.
Sec. 820. Defense cost accounting standards.
Sec. 821. Increased micro-purchase threshold applicable to Department of 
          Defense procurements.
Sec. 822. Enhanced competition requirements.
Sec. 823. Revision to effective date of senior executive benchmark 
          compensation for allowable cost limitations.
Sec. 824. Treatment of independent research and development costs on 
          certain contracts.
Sec. 825. Exception to requirement to include cost or price to the 
          Government as a factor in the evaluation of proposals for 
          certain multiple-award task or delivery order contracts.
Sec. 826. Extension of program for comprehensive small business 
          contracting plans.
Sec. 827. Treatment of side-by-side testing of certain equipment, 
          munitions, and technologies manufactured and developed under 
          cooperative research and development agreements as use of 
          competitive procedures.
Sec. 828. Defense Acquisition Challenge Program amendments.
Sec. 829. Preference for fixed-price contracts.
Sec. 830. Requirement to use firm fixed-price contracts for foreign 
          military sales.
Sec. 831. Preference for performance-based contract payments.
Sec. 832. Contractor incentives to achieve savings and improve mission 
          performance.
Sec. 833. Sunset and repeal of certain contracting provisions.
Sec. 834. Flexibility in contracting award program.
Sec. 835. Protection of task order competition.
Sec. 836. Contract closeout authority.
Sec. 837. Closeout of old Department of the Navy contracts.

  Subtitle D--Provisions Relating to Major Defense Acquisition Programs

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

        Subtitle E--Provisions Relating to Acquisition Workforce

Sec. 861. Project management.
Sec. 862. Authority to waive tenure requirement for program managers for 
          program definition and program execution periods.
Sec. 863. Purposes for which the Department of Defense Acquisition 
          Workforce Development Fund may be used; advisory panel 
          amendments.
Sec. 864. Department of Defense Acquisition Workforce Development Fund 
          determination adjustment.
Sec. 865. Limitations on funds used for staff augmentation contracts at 
          management headquarters of the Department of Defense and the 
          military departments.
Sec. 866. Senior Military Acquisition Advisors in the Defense 
          Acquisition Corps.
Sec. 867. Authority of the Secretary of Defense under the acquisition 
          demonstration project.

           Subtitle F--Provisions Relating to Commercial Items

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

                   Subtitle G--Industrial Base Matters

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

                        Subtitle H--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

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

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

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

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

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

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

          Subtitle E--Strategies, Reports, and Related Matters

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

                        Subtitle F--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                   Subtitle B--Counterdrug Activities

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

                 Subtitle C--Naval Vessels and Shipyards

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

                      Subtitle D--Counterterrorism

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

          Subtitle E--Miscellaneous Authorities and Limitations

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

                     Subtitle F--Studies and Reports

Sec. 1061. Temporary continuation of certain Department of Defense 
          reporting requirements.
Sec. 1062. Reports on programs managed under alternative compensatory 
          control measures in the Department of Defense.
Sec. 1063. Matters for inclusion in report on designation of countries 
          for which rewards may be paid under Department of Defense 
          rewards program.
Sec. 1064. Annual reports on unfunded priorities of the Armed Forces and 
          the combatant commands and annual report on combatant command 
          requirements.
Sec. 1065. Management and reviews of electromagnetic spectrum.
Sec. 1066. Requirement for notice and reporting to Committees on Armed 
          Services on certain expenditures of funds by Defense 
          Intelligence Agency.
Sec. 1067. Congressional notification of biological select agent and 
          toxin theft, loss, or release involving the Department of 
          Defense.
Sec. 1068. Report on service-provided support and enabling capabilities 
          to United States special operations forces.
Sec. 1069. Report on citizen security responsibilities in the Northern 
          Triangle of Central America.
Sec. 1070. Report on counterproliferation activities and programs.
Sec. 1071. Report on testing and integration of minehunting sonar 
          systems to improve Littoral Combat Ship minehunting 
          capabilities.
Sec. 1072. Quarterly reports on parachute jumps conducted at Fort Bragg 
          and Pope Army Airfield and Air Force support for such jumps.
Sec. 1073. Study on military helicopter noise.
Sec. 1074. Independent review of United States military strategy and 
          force posture in the United States Pacific Command area of 
          responsibility.
Sec. 1075. Assessment of the joint ground forces of the Armed Forces.

                        Subtitle G--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

           Subtitle A--Department of Defense Matters Generally

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

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

Sec. 1121. Permanent personnel management authority for the Department 
          of Defense for experts in science and engineering.
Sec. 1122. Codification and modification of certain authorities for 
          certain positions at Department of Defense research and 
          engineering laboratories.
Sec. 1123. Modification to information technology personnel exchange 
          program.
Sec. 1124. Pilot program on enhanced pay authority for certain research 
          and technology positions in the science and technology 
          reinvention laboratories of the Department of Defense.
Sec. 1125. Temporary direct hire authority for domestic defense 
          industrial base facilities, the Major Range and Test 
          Facilities Base, and the Office of the Director of Operational 
          Test and Evaluation.

                   Subtitle C--Governmentwide Matters

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

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

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

        Subtitle B--Matters Relating to Afghanistan and Pakistan

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

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

Sec. 1221. Modification and extension of authority to provide assistance 
          to the vetted Syrian opposition.
Sec. 1222. Modification and extension of authority to provide assistance 
          to counter the Islamic State of Iraq and the Levant.
Sec. 1223. Extension and modification of authority to support operations 
          and activities of the Office of Security Cooperation in Iraq.
Sec. 1224. Limitation on provision of man-portable air defense systems 
          to the vetted Syrian opposition during fiscal year 2017.
Sec. 1225. Modification of annual report on military power of Iran.
Sec. 1226. Quarterly report on confirmed ballistic missile launches from 
          Iran.

         Subtitle D--Matters Relating to the Russian Federation

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

    Subtitle E--Reform of Department of Defense Security Cooperation

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

                   Subtitle F--Human Rights Sanctions

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

                    Subtitle G--Miscellaneous Reports

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

                        Subtitle H--Other Matters

Sec. 1281. Enhancement of interagency support during contingency 
          operations and transition periods.
Sec. 1282. Two-year extension and modification of authorization of non-
          conventional assisted recovery capabilities.
Sec. 1283. Authority to destroy certain specified World War II-era 
          United States-origin chemical munitions located on San Jose 
          Island, Republic of Panama.
Sec. 1284. Sense of Congress on military exchanges between the United 
          States and Taiwan.
Sec. 1285. Limitation on availability of funds to implement the Arms 
          Trade Treaty.
Sec. 1286. Prohibition on use of funds to invite, assist, or otherwise 
          assure the participation of Cuba in certain joint or 
          multilateral exercises.
Sec. 1287. Global Engagement Center.
Sec. 1288. Modification of United States International Broadcasting Act 
          of 1994.
Sec. 1289. Redesignation of South China Sea Initiative.
Sec. 1290. Measures against persons involved in activities that violate 
          arms control treaties or agreements with the United States.
Sec. 1291. Agreements with foreign governments to develop land-based 
          water resources in support of and in preparation for 
          contingency operations.
Sec. 1292. Enhancing defense and security cooperation with India.
Sec. 1293. Coordination of efforts to develop free trade agreements with 
          sub-Saharan African countries.
Sec. 1294. Extension and expansion of authority to support border 
          security operations of certain foreign countries.
Sec. 1295. Modification and clarification of United States-Israel anti-
          tunnel cooperation authority.
Sec. 1296. Maintenance of prohibition on procurement by Department of 
          Defense of People's Republic of China-origin items that meet 
          the definition of goods and services controlled as munitions 
          items when moved to the ``600 series'' of the Commerce Control 
          List.
Sec. 1297. International sales process improvements.
Sec. 1298. Efforts to end modern slavery.

                TITLE XIII--COOPERATIVE THREAT REDUCTION

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

                     TITLE XIV--OTHER AUTHORIZATIONS

                      Subtitle A--Military Programs

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

                 Subtitle B--National Defense Stockpile

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

              Subtitle C--Chemical Demilitarization Matters

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

                        Subtitle D--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

                      Subtitle B--Financial Matters

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

           Subtitle C--Limitations, Reports, and Other Matters

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

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

                      Subtitle A--Space Activities

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

  Subtitle B--Defense Intelligence and Intelligence-Related Activities

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

                 Subtitle C--Cyberspace-Related Matters

Sec. 1641. Special emergency procurement authority to facilitate the 
          defense against or recovery from a cyber attack.
Sec. 1642. Limitation on termination of dual-hat arrangement for 
          Commander of the United States Cyber Command.
Sec. 1643. Cyber mission forces matters.
Sec. 1644. Requirement to enter into agreements relating to use of cyber 
          opposition forces.
Sec. 1645. Cyber protection support for Department of Defense personnel 
          in positions highly vulnerable to cyber attack.
Sec. 1646. Limitation on full deployment of joint regional security 
          stacks.
Sec. 1647. Advisory committee on industrial security and industrial base 
          policy.
Sec. 1648. Change in name of National Defense University's Information 
          Resources Management College to College of Information and 
          Cyberspace.
Sec. 1649. Evaluation of cyber vulnerabilities of F-35 aircraft and 
          support systems.
Sec. 1650. Evaluation of cyber vulnerabilities of Department of Defense 
          critical infrastructure.
Sec. 1651. Strategy to incorporate Army reserve component cyber 
          protection teams into Department of Defense cyber mission 
          force.
Sec. 1652. Strategic Plan for the Defense Information Systems Agency.
Sec. 1653. Plan for information security continuous monitoring 
          capability and comply-to-connect policy; limitation on 
          software licensing.
Sec. 1654. Reports on deterrence of adversaries in cyberspace.
Sec. 1655. Sense of Congress on cyber resiliency of the networks and 
          communications systems of the National Guard.

                       Subtitle D--Nuclear Forces

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

                  Subtitle E--Missile Defense Programs

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

                        Subtitle F--Other Matters

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

          TITLE XVII--GUAM WORLD WAR II LOYALTY RECOGNITION ACT

Sec. 1701. Short title.
Sec. 1702. Recognition of the suffering and loyalty of the residents of 
          Guam.
Sec. 1703. Guam World War II Claims Fund.
Sec. 1704. Payments for Guam World War II claims.
Sec. 1705. Adjudication.
Sec. 1706. Grants program to memorialize the occupation of Guam during 
          World War II.
Sec. 1707. Authorization of appropriations.

       TITLE XVIII--MATTERS RELATING TO SMALL BUSINESS PROCUREMENT

   Subtitle A--Improving Transparency and Clarity for Small Businesses

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

      Subtitle B--Clarifying the Roles of Small Business Advocates

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

       Subtitle C--Strengthening Opportunities for Competition in 
                             Subcontracting

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

                  Subtitle D--Miscellaneous Provisions

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

      Subtitle E--Improving Cyber Preparedness for Small Businesses

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

         TITLE XIX--DEPARTMENT OF HOMELAND SECURITY COORDINATION

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

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

                  TITLE XXI--ARMY MILITARY CONSTRUCTION

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Authorization of appropriations, Army.
Sec. 2104. Modification of authority to carry out certain fiscal year 
          2014 project.
Sec. 2105. Extension of authorizations of certain fiscal year 2013 
          projects.
Sec. 2106. Extension of authorizations of certain fiscal year 2014 
          projects.

                 TITLE XXII--NAVY MILITARY CONSTRUCTION

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

              TITLE XXIII--AIR FORCE MILITARY CONSTRUCTION

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

           TITLE XXIV--DEFENSE AGENCIES MILITARY CONSTRUCTION

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

                    TITLE XXV--INTERNATIONAL PROGRAMS

   Subtitle A--North Atlantic Treaty Organization Security Investment 
                                 Program

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

             Subtitle B--Host Country In-Kind Contributions

Sec. 2511. Republic of Korea funded construction projects.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

 Subtitle A--Project Authorizations and Authorization of Appropriations

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

                        Subtitle B--Other Matters

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

          TITLE XXVII--BASE REALIGNMENT AND CLOSURE ACTIVITIES

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

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

  Subtitle A--Military Construction Program and Military Family Housing

Sec. 2801. Modification of criteria for treatment of laboratory 
          revitalization projects as minor military construction 
          projects.
Sec. 2802. Classification of facility conversion projects as repair 
          projects.
Sec. 2803. Limited authority for scope of work increase.
Sec. 2804. Extension of temporary, limited authority to use operation 
          and maintenance funds for construction projects outside the 
          United States.
Sec. 2805. Authority to expand energy conservation construction program 
          to include energy resiliency projects.
Sec. 2806. Additional entities eligible for participation in defense 
          laboratory modernization pilot program.
Sec. 2807. Extension of temporary authority for acceptance and use of 
          contributions for certain construction, maintenance, and 
          repair projects mutually beneficial to the Department of 
          Defense and Kuwait military forces.

         Subtitle B--Real Property and Facilities Administration

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

                      Subtitle C--Land Conveyances

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

         Subtitle D--Military Memorials, Monuments, and Museums

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

               Subtitle E--Designations and Other Matters

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

    TITLE XXIX--OVERSEAS CONTINGENCY OPERATIONS MILITARY CONSTRUCTION

Sec. 2901. Authorized Navy construction and land acquisition projects.
Sec. 2902. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2903. Authorization of appropriations.

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

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

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

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

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

        Subtitle A--National Security Programs and Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

                      Subtitle C--Plans and Reports

Sec. 3131. Independent assessment of technology development under 
          defense environmental cleanup program.
Sec. 3132. Updated plan for verification and monitoring of proliferation 
          of nuclear weapons and fissile material.
Sec. 3133. Report on the use of highly-enriched uranium for naval 
          reactors.
Sec. 3134. Analysis of approaches for supplemental treatment of low-
          activity waste at Hanford Nuclear Reservation.
Sec. 3135. Clarification of annual report and certification on status of 
          security of atomic energy defense facilities.
Sec. 3136. Report on service support contracts and authority for 
          appointment of certain personnel.
Sec. 3137. Elimination of certain reporting requirements.
Sec. 3138. Report on United States nuclear deterrence.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                      TITLE XXXV--MARITIME MATTERS

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

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

           Subtitle B--Pribilof Islands Transition Completion

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

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

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

                       DIVISION D--FUNDING TABLES

Sec. 4001. Authorization of amounts in funding tables.

                         TITLE XLI--PROCUREMENT

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

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

Sec. 4201. Research, development, test, and evaluation.
Sec. 4202. Research, development, test, and evaluation for overseas 
          contingency operations.
Sec. 4203. Research, development, test, and evaluation for overseas 
          contingency operations for base requirements.

                 TITLE XLIII--OPERATION AND MAINTENANCE

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

                     TITLE XLIV--MILITARY PERSONNEL

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

                     TITLE XLV--OTHER AUTHORIZATIONS

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

                    TITLE XLVI--MILITARY CONSTRUCTION

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

      TITLE XLVII--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Sec. 4701. Department of Energy national security programs.

           DIVISION E--UNIFORM CODE OF MILITARY JUSTICE REFORM

Sec. 5001. Short title.

                      TITLE LI--GENERAL PROVISIONS

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

                  TITLE LII--APPREHENSION AND RESTRAINT

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

                   TITLE LIII--NON-JUDICIAL PUNISHMENT

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

                  TITLE LIV--COURT-MARTIAL JURISDICTION

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

                 TITLE LV--COMPOSITION OF COURTS-MARTIAL

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

                     TITLE LVI--PRE-TRIAL PROCEDURE

Sec. 5201. Charges and specifications.
Sec. 5202. Certain proceedings conducted before referral.
Sec. 5203. Preliminary hearing required before referral to general 
          court-martial.
Sec. 5204. Disposition guidance.
Sec. 5205. Advice to convening authority before referral for trial.
Sec. 5206. Service of charges and commencement of trial.

                       TITLE LVII--TRIAL PROCEDURE

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

                         TITLE LVIII--SENTENCES

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

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

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

                       TITLE LX--PUNITIVE ARTICLES

Sec. 5401. Reorganization of punitive articles.
Sec. 5402. Conviction of offense charged, lesser included offenses, and 
          attempts.
Sec. 5403. Soliciting commission of offenses.
Sec. 5404. Malingering.
Sec. 5405. Breach of medical quarantine.
Sec. 5406. Missing movement; jumping from vessel.
Sec. 5407. Offenses against correctional custody and restriction.
Sec. 5408. Disrespect toward superior commissioned officer; assault of 
          superior commissioned officer.
Sec. 5409. Willfully disobeying superior commissioned officer.
Sec. 5410. Prohibited activities with military recruit or trainee by 
          person in position of special trust.
Sec. 5411. Offenses by sentinel or lookout.
Sec. 5412. Disrespect toward sentinel or lookout.
Sec. 5413. Release of prisoner without authority; drinking with 
          prisoner.
Sec. 5414. Penalty for acting as a spy.
Sec. 5415. Public records offenses.
Sec. 5416. False or unauthorized pass offenses.
Sec. 5417. Impersonation offenses.
Sec. 5418. Insignia offenses.
Sec. 5419. False official statements; false swearing.
Sec. 5420. Parole violation.
Sec. 5421. Wrongful taking, opening, etc. of mail matter.
Sec. 5422. Improper hazarding of vessel or aircraft.
Sec. 5423. Leaving scene of vehicle accident.
Sec. 5424. Drunkenness and other incapacitation offenses.
Sec. 5425. Lower blood alcohol content limits for conviction of drunken 
          or reckless operation of vehicle, aircraft, or vessel.
Sec. 5426. Endangerment offenses.
Sec. 5427. Communicating threats.
Sec. 5428. Technical amendment relating to murder.
Sec. 5429. Child endangerment.
Sec. 5430. Rape and sexual assault offenses.
Sec. 5431. Deposit of obscene matter in the mail.
Sec. 5432. Fraudulent use of credit cards, debit cards, and other access 
          devices.
Sec. 5433. False pretenses to obtain services.
Sec. 5434. Robbery.
Sec. 5435. Receiving stolen property.
Sec. 5436. Offenses concerning Government computers.
Sec. 5437. Bribery.
Sec. 5438. Graft.
Sec. 5439. Kidnapping.
Sec. 5440. Arson; burning property with intent to defraud.
Sec. 5441. Assault.
Sec. 5442. Burglary and unlawful entry.
Sec. 5443. Stalking.
Sec. 5444. Subornation of perjury.
Sec. 5445. Obstructing justice.
Sec. 5446. Misprision of serious offense.
Sec. 5447. Wrongful refusal to testify.
Sec. 5448. Prevention of authorized seizure of property.
Sec. 5449. Wrongful interference with adverse administrative proceeding.
Sec. 5450. Retaliation.
Sec. 5451. Extraterritorial application of certain offenses.
Sec. 5452. Table of sections.

                   TITLE LXI--MISCELLANEOUS PROVISIONS

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

      TITLE LXII--MILITARY JUSTICE REVIEW PANEL AND ANNUAL REPORTS

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

         TITLE LXIII--CONFORMING AMENDMENTS AND EFFECTIVE DATES

Sec. 5541. Amendments to UCMJ subchapter tables of sections.
Sec. 5542. Effective dates.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.
    In this Act, the term ``congressional defense committees'' has the 
meaning given that term in section 101(a)(16) of title 10, United 
States Code.
SEC. 4. BUDGETARY EFFECTS OF THIS ACT.
    The budgetary effects of this Act, for the purposes of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, jointly submitted for printing in the 
Congressional Record by the Chairmen of the House and Senate Budget 
Committees, provided that such statement has been submitted prior to 
the vote on passage in the House acting first on the conference report 
or amendment between the Houses.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Authorization of appropriations.

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

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

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

              Subtitle A--Authorization of Appropriations

    SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
    Funds are hereby authorized to be appropriated for fiscal year 2017 
for procurement for the Army, the Navy and the Marine Corps, the Air 
Force, and Defense-wide activities, as specified in the funding table 
in section 4101.

                       Subtitle B--Army Programs

    SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR AH-64E APACHE 
      HELICOPTERS.
    (a) Authority for Multiyear Procurement.--Subject to section 2306b 
of title 10, United States Code, the Secretary of the Army may enter 
into one or more multiyear contracts, beginning with the fiscal year 
2017 program year, for the procurement of AH-64E Apache helicopters.
    (b) Condition for Out-year Contract Payments.--A contract entered 
into under subsection (a) shall provide that any obligation of the 
United States to make a payment under the contract for a fiscal year 
after fiscal year 2017 is subject to the availability of appropriations 
for that purpose for such later fiscal year.
    SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR UH-60M AND HH-60M 
      BLACK HAWK HELICOPTERS.
    (a) Authority for Multiyear Procurement.--Subject to section 2306b 
of title 10, United States Code, the Secretary of the Army may enter 
into one or more multiyear contracts, beginning with the fiscal year 
2017 program year, for the procurement of UH-60M and HH-60M Black Hawk 
helicopters.
    (b) Condition for Out-year Contract Payments.--A contract entered 
into under subsection (a) shall provide that any obligation of the 
United States to make a payment under the contract for a fiscal year 
after fiscal year 2017 is subject to the availability of appropriations 
for that purpose for such later fiscal year.
    SEC. 113. DISTRIBUTED COMMON GROUND SYSTEM-ARMY INCREMENT 1.
    (a) Training for Operators.--The Secretary of the Army shall take 
such actions as may be necessary to improve and tailor training for 
covered units in the versions of increment 1 that are in use on the 
date of the enactment of this Act.
    (b) Fielding of Capability.--
        (1) In general.--The Secretary shall rapidly identify and field 
    a capability for fixed and deployable multi-source ground 
    processing systems for covered units.
        (2) Commercially available capabilities.--In carrying out 
    paragraph (1), the Secretary shall procure commercially available 
    off-the-shelf technologies that--
            (A) meet essential tactical requirements for processing, 
        analyzing, and displaying intelligence information;
            (B) can integrate and communicate with covered units at the 
        tactical unit level and at higher unit levels;
            (C) are substantially easier for personnel to use than the 
        Distributed Common Ground System-Army; and
            (D) require less training than the Distributed Common 
        Ground System-Army.
    (c) Limitation on the Award of Contract.--The Secretary may not 
enter into a contract for the design, development, or procurement of 
any data architecture, data integration, or ``cloud'' capability, or 
any data analysis or data visualization and workflow capability 
(including warfighting function tools relating to increment 1 of the 
Distributed Common Ground System-Army) for covered units unless the 
contract--
        (1) is awarded not later than 180 days after the date of the 
    enactment of this Act;
        (2) is awarded in accordance with applicable law and 
    regulations providing for the use of competitive procedures or 
    procedures applicable to the procurement of commercial items 
    including parts 12 and 15 of the Federal Acquisition Regulation;
        (3) is a fixed-price contract; and
        (4) provides that the technology to be procured under the 
    contract will--
            (A) begin initial fielding rapidly after the contract 
        award;
            (B) achieve initial operating capability not later than 
        nine months after the date on which the contract is awarded; 
        and
            (C) achieve full operating capability not later than 18 
        months after the date on which the contract is awarded.
    (d) Waiver.--
        (1) In general.--The Secretary of Defense may waive the 
    limitation in subsection (c) if the Secretary submits to the 
    appropriate congressional committees a written statement declaring 
    that such limitation would adversely affect ongoing operational 
    activities.
        (2) Nondelegation.--The Secretary of Defense may not delegate 
    the waiver authority under paragraph (1).
    (e) Definitions.--In this section:
        (1) Appropriate congressional committees.--The term 
    ``appropriate congressional committees'' means--
            (A) the congressional defense committees;
            (B) the Select Committee on Intelligence of the Senate; and
            (C) the Permanent Select Committee on Intelligence of the 
        House of Representatives.
        (2) Covered units.--The term ``covered units'' means military 
    units that use increment 1 of the Distributed Common Ground System-
    Army, including tactical units and operators at the division, 
    brigade, and battalion levels, and tactical units below the 
    battalion level.
    SEC. 114. ASSESSMENT OF CERTAIN CAPABILITIES OF THE DEPARTMENT OF 
      THE ARMY.
    (a) Assessment.--The Secretary of Defense, in consultation with the 
Secretary of the Army and the Chief of Staff of the Army, shall conduct 
an assessment of the following capabilities with respect to the 
Department of the Army:
        (1) The capacity of AH-64 Apache-equipped attack reconnaissance 
    battalions to meet future needs.
        (2) Air defense artillery capacity and responsiveness, 
    including--
            (A) the capacity of short-range air defense artillery to 
        address existing and emerging threats, including threats posed 
        by unmanned aerial systems, cruise missiles, and manned 
        aircraft; and
            (B) the potential for commercial off-the-shelf solutions.
        (3) Chemical, biological, radiological, and nuclear 
    capabilities and modernization needs.
        (4) Field artillery capabilities, including--
            (A) modernization needs;
            (B) munitions inventory shortfalls; and
            (C) changes in doctrine and war plans consistent with the 
        Memorandum of the Secretary of Defense dated June 19, 2008, 
        regarding the Department of Defense policy on cluster munitions 
        and unintended harm to civilians.
        (5) Fuel distribution and water purification capacity and 
    responsiveness.
        (6) Watercraft and port-opening capabilities and 
    responsiveness.
        (7) Transportation capacity and responsiveness, particularly 
    with respect to the transportation of fuel, water, and cargo.
        (8) Military police capacity.
        (9) Tactical mobility and tactical wheeled vehicle capacity, 
    including heavy equipment prime movers.
    (b) Report.--Not later than April 1, 2017, the Secretary of Defense 
shall submit to the congressional defense committees a report that 
includes--
        (1) the assessment conducted under subsection (a);
        (2) recommendations for reducing or eliminating shortfalls in 
    responsiveness and capacity with respect to each of the 
    capabilities described in such subsection; and
        (3) an estimate of the costs of implementing such 
    recommendations.
    (c) Form.--The report under subsection (b) shall be submitted in 
unclassified form, but may include a classified annex.

                       Subtitle C--Navy Programs

    SEC. 121. DETERMINATION OF VESSEL DELIVERY DATES.
    (a) Determination of Vessel Delivery Dates.--
        (1) In general.--Chapter 633 of title 10, United States Code, 
    is amended by inserting after section 7300 the following new 
    section:
``Sec. 7301. Determination of vessel delivery dates
    ``(a) In General.--The delivery of a covered vessel shall be deemed 
to occur on the date on which--
        ``(1) the Secretary of the Navy determines that the vessel is 
    assembled and complete; and
        ``(2) custody of the vessel and all systems contained in the 
    vessel transfers to the Navy.
    ``(b) Inclusion in Budget and Acquisition Reports.--The delivery 
dates of covered vessels shall be included--
        ``(1) in the materials submitted to Congress by the Secretary 
    of Defense in support of the budget of the President for each 
    fiscal year (as submitted to Congress under section 1105(a) of 
    title 31, United States Code); and
        ``(2) in any relevant Selected Acquisition Report submitted to 
    Congress under section 2432 of this title.
    ``(c) Covered Vessel Defined.--In this section, the term `covered 
vessel' means any vessel of the Navy that is under construction on or 
after the date of the enactment of this section using amounts 
authorized to be appropriated for the Department of Defense for 
shipbuilding and conversion, Navy.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 7300 the following new item:

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

    (b) Certification.--
        (1) In general.--Not later than January 1, 2017, the Secretary 
    of the Navy shall certify to the congressional defense committees 
    that the delivery dates of the following vessels have been adjusted 
    in accordance with section 7301 of title 10, United States Code, as 
    added by subsection (a):
            (A) The U.S.S. John F. Kennedy (CVN-79).
            (B) The U.S.S. Zumwalt (DDG-1000).
            (C) The U.S.S. Michael Monsoor (DDG-1001).
            (D) The U.S.S. Lyndon B. Johnson (DDG-1002).
            (E) Any other vessel of the Navy that is under construction 
        on the date of the enactment of this Act.
        (2) Contents.--The certification under paragraph (1) shall 
    include--
            (A) an identification of each vessel for which the delivery 
        date was adjusted; and
            (B) the delivery date of each such vessel, as so adjusted.
    SEC. 122. INCREMENTAL FUNDING FOR DETAIL DESIGN AND CONSTRUCTION OF 
      LHA REPLACEMENT SHIP DESIGNATED LHA 8.
    (a) Authority To Use Incremental Funding.--The Secretary of the 
Navy may enter into and incrementally fund a contract for detail design 
and construction of the LHA Replacement ship designated LHA 8 and, 
subject to subsection (b), funds for payments under the contract may be 
provided from amounts authorized to be appropriated for the Department 
of Defense for Shipbuilding and Conversion, Navy, for fiscal years 2017 
and 2018.
    (b) Condition for Out-year Contract Payments.--A contract entered 
into under subsection (a) shall provide that any obligation of the 
United States to make a payment under the contract for any subsequent 
fiscal year is subject to the availability of appropriations for that 
purpose for such subsequent fiscal year.
    SEC. 123. LITTORAL COMBAT SHIP.
    (a) Report on Littoral Combat Ship Mission Packages.--
        (1) In general.--The Secretary of Defense shall include in the 
    materials submitted in support of the budget of the President (as 
    submitted to Congress under section 1105(a) of title 31, United 
    States Code) for each fiscal year through fiscal year 2022 a report 
    on Littoral Combat Ship mission packages.
        (2) Elements.--Each report under paragraph (1) shall include, 
    with respect to each Littoral Combat Ship mission package and 
    increment, the following:
            (A) A description of the status of and plans for 
        development, production, and sustainment, including--
                (i) projected unit costs compared to originally 
            estimated unit costs for each system that comprises the 
            mission package;
                (ii) projected development costs, procurement costs, 
            and 20-year sustainment costs compared to original 
            estimates of such costs for each system that comprises the 
            mission package;
                (iii) demonstrated performance compared to required 
            performance for each system that comprises the mission 
            package and for the mission package as a whole;
                (iv) problems relating to realized and potential costs, 
            schedule, or performance; and
                (v) any development plans, production plans, or 
            sustainment and mitigation plans that may be implemented to 
            address such problems.
            (B) A description, including dates, of each developmental 
        test, operational test, integrated test, and follow-on test 
        event that is--
                (i) completed in the fiscal year preceding the fiscal 
            year covered by the report; and
                (ii) expected to be completed in the fiscal year 
            covered by the report and any of the following five fiscal 
            years.
            (C) The date on which initial operational capability is 
        expected to be attained and a description of the performance 
        level criteria that must be demonstrated to declare that such 
        capability has been attained.
            (D) A description of--
                (i) the systems that attained initial operational 
            capability in the fiscal year preceding the fiscal year 
            covered by the report; and
                (ii) the performance level demonstrated by such systems 
            compared to the performance level required of such systems.
            (E) The acquisition inventory objective for each system.
            (F) An identification of--
                (i) each location (including the city, State, and 
            country) to which systems were delivered in the fiscal year 
            preceding the fiscal year covered by the report; and
                (ii) the quantity of systems delivered to each such 
            location.
            (G) An identification of--
                (i) each location (including the city, State, and 
            country) to which systems are projected to be delivered in 
            the fiscal year covered by the report and any of the 
            following five fiscal years; and
                (ii) the quantity of systems projected to be delivered 
            to each such location.
    (b) Certification of Littoral Combat Ship Mission Package Program 
of Record.--
        (1) In general.--The Under Secretary of Defense for 
    Acquisition, Technology, and Logistics shall include in the 
    materials submitted in support of the budget of the President (as 
    submitted to Congress under section 1105(a) of title 31, United 
    States Code) for fiscal year 2018 the certification described in 
    paragraph (2).
        (2) Certification.--The certification described in this 
    paragraph is a certification with respect to Littoral Combat Ship 
    mission packages that includes, as of the fiscal year covered by 
    the certification, the program of record quantity for--
            (A) surface warfare mission packages;
            (B) anti-submarine warfare mission packages; and
            (C) mine countermeasures mission packages.
    (c) Limitations.--
        (1) Limitation on deviation from acquisition strategy.--
            (A) In general.--The Secretary of Defense may not revise or 
        deviate from revision three of the Littoral Combat Ship 
        acquisition strategy, until the date on which the Secretary 
        submits to the congressional defense committees the 
        certification described in subparagraph (B).
            (B) Certification.--The certification described in this 
        subparagraph is a certification that includes--
                (i) the rationale of the Secretary for revising or 
            deviating from revision three of the Littoral Combat Ship 
            acquisition strategy;
                (ii) a description of each such revision or deviation; 
            and
                (iii) the Littoral Combat Ship acquisition strategy 
            that is in effect following the implementation of such 
            revisions or deviations.
        (2) Limitation on selection of single contractor.--The 
    Secretary of Defense may not select only a single prime contractor 
    to construct the Littoral Combat Ship or any successor frigate 
    class ship unless such selection--
            (A) is conducted using competitive procedures and for the 
        limited purpose of awarding a contract or contracts for--
                (i) an engineering change proposal for a frigate class 
            ship; or
                (ii) the construction of a frigate class ship; and
            (B) occurs only after a frigate design has--
                (i) reached sufficient maturity and completed a 
            preliminary design review; or
                (ii) demonstrated an equivalent level of design 
            completeness.
    (d) Definitions.--In this section:
        (1) Littoral combat ship mission package.--The term ``Littoral 
    Combat Ship mission package'' means a mission module for a Littoral 
    Combat Ship combined with the crew detachment and support aircraft 
    for such ship.
        (2) Mission module.--The term ``mission module'' means the 
    mission systems (including vehicles, communications, sensors, and 
    weapons systems) combined with support equipment (including support 
    containers and standard interfaces) and software (including 
    software relating to the computing environment and multiple vehicle 
    communications system of the mission package).
        (3) Revision three.--The term ``revision three of the Littoral 
    Combat Ship acquisition strategy'' means the third revision of the 
    Littoral Combat Ship acquisition strategy approved by the Under 
    Secretary of Defense for Acquisition, Technology, and Logistics on 
    March 29, 2016.
    (e) Repeal of Quarterly Reporting Requirement.--Section 126 of the 
National Defense Authorization Act for Fiscal Year 2013 (Public Law 
112-239; 126 Stat. 1657) is amended--
        (1) by striking subsection (b); and
        (2) by striking ``(a) Designation Required.--''.
    SEC. 124. LIMITATION ON USE OF SOLE-SOURCE SHIPBUILDING CONTRACTS 
      FOR CERTAIN VESSELS.
    (a) Limitation.--None of the funds authorized to be appropriated by 
this Act or otherwise made available for the Department of Defense for 
fiscal year 2017 for joint high speed vessels or expeditionary fast 
transports may be used to enter into or prepare to enter into a 
contract on a sole-source basis for the construction of such vessels or 
transports unless the Secretary of the Navy submits to the 
congressional defense committees the certification described in 
subsection (b) and the report described in subsection (c).
    (b) Certification.--The certification described in this subsection 
is a certification by the Secretary of the Navy that--
        (1) awarding a contract for the construction of one or more 
    joint high speed vessels or expeditionary fast transports on a 
    sole-source basis is in the national security interests of the 
    United States;
        (2) the construction of the vessels or transports will not 
    result in exceeding the requirement for the ship class, as 
    described in the most recent Navy force structure assessment;
        (3) the contract will be a fixed-price contract;
        (4) the price of the contract will be fair and reasonable, as 
    determined by the service acquisition executive of the Navy; and
        (5) the contract will provide for the United States to have 
    Government purpose rights in the data for the ship design.
    (c) Report.--The report described in this subsection is a report 
that includes--
        (1) an explanation of the rationale for awarding a contract for 
    the construction of joint high speed vessels or expeditionary fast 
    transports on a sole-source basis; and
        (2) a description of--
            (A) actions that may be carried out to ensure that, if 
        additional ships in the class are procured after the award of 
        the contract referred to in paragraph (1), the contracts for 
        the ships shall be awarded using competitive procedures; and
            (B) with respect to each such action, an implementation 
        schedule and any associated cost savings, as compared to a 
        contract awarded on a sole-source basis.
    SEC. 125. LIMITATION ON AVAILABILITY OF FUNDS FOR THE ADVANCED 
      ARRESTING GEAR PROGRAM.
    (a) Advanced Arresting Gear for U.S.S. Enterprise.--None of the 
funds authorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017 for the research and development, 
design, procurement, or advanced procurement of materials for advanced 
arresting gear for the U.S.S. Enterprise (CVN-80) may be obligated or 
expended until the Secretary of Defense submits to the congressional 
defense committees the report described in section 2432 of title 10, 
United States Code, for the most recently concluded fiscal quarter for 
the Advanced Arresting Gear Program in accordance with subsection 
(c)(1).
    (b) Advanced Arresting Gear for U.S.S. John F. Kennedy.--None of 
the funds authorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017 for the research and development, 
design, procurement, or advanced procurement of materials for advanced 
arresting gear for the U.S.S. John F. Kennedy (CVN-79) may be obligated 
or expended unless--
        (1) the decision to install advanced arresting gear on the 
    vessel is determined by the milestone decision authority for the 
    Program; and
        (2) the milestone decision authority for the Program submits 
    notification of such determination to the congressional defense 
    committees.
    (c) Additional Requirements.--
        (1) Treatment of baseline estimate.--The Secretary of Defense 
    shall deem the Baseline Estimate for the Advanced Arresting Gear 
    Program for fiscal year 2009 as the original Baseline Estimate for 
    the Program.
        (2) Unit cost reports and critical cost growth.--
            (A) Subject to subparagraph (B), the Secretary shall carry 
        out sections 2433 and 2433a of title 10, United States Code, 
        with respect to the Advanced Arresting Gear Program, as if the 
        Department had submitted a Selected Acquisition Report for the 
        Program that included the Baseline Estimate for the Program for 
        fiscal year 2009 as the original Baseline Estimate, except that 
        the Secretary shall not carry out subparagraph (B) or 
        subparagraph (C) of section 2433a(c)(1) of such title with 
        respect to the Program.
            (B) In carrying out the review required by section 2433a of 
        such title, the Secretary shall not approve a contract, enter 
        into a new contract, exercise an option under a contract, or 
        otherwise extend the scope of a contract for advanced arresting 
        gear for the U.S.S. Enterprise (CVN-80), except to the extent 
        determined necessary by the milestone decision authority, on a 
        non-delegable basis, to ensure that the Program can be 
        restructured as intended by the Secretary without unnecessarily 
        wasting resources.
    (d) Definitions.--In this section:
        (1) Baseline estimate.--The term ``Baseline Estimate'' has the 
    meaning given the term in section 2433(a)(2) of title 10, United 
    States Code.
        (2) Mileston decision authority.--The term ``milestone decision 
    authority'' has the meaning given the term in section 2366b(g)(3) 
    of title 10, United States Code.
        (3) Original baseline estimate.--The term ``original Baseline 
    Estimate'' has the meaning given the term in section 2435(d)(1) of 
    title 10, United States Code.
        (4) Selected acquisition report.--The term ``Selected 
    Acquisition Report'' means a Selected Acquisition Report submitted 
    to Congress under section 2432 of title 10, United States Code.
    SEC. 126. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT OF 
      U.S.S. ENTERPRISE (CVN-80).
    (a) Limitation.--Of the funds authorized to be appropriated by this 
Act or otherwise made available for fiscal year 2017 for advance 
procurement or procurement for the U.S.S. Enterprise (CVN-80), not more 
than 25 percent may be obligated or expended until the date on which 
the Secretary of the Navy and the Chief of Naval Operations jointly 
submit to the congressional defense committees the report under 
subsection (b).
    (b) Initial Report on CVN-79 and CVN-80.--Not later than December 
1, 2016, the Secretary of the Navy and the Chief of Naval Operations 
shall jointly submit to the congressional defense committees a report 
that includes a description of actions that may be carried out 
(including de-scoping requirements, if necessary) to achieve a ship end 
cost of--
        (1) not more than $12,000,000,000 for the CVN-80; and
        (2) not more than $11,000,000,000 for the U.S.S. John F. 
    Kennedy (CVN-79).
    (c) Annual Report on CVN-79 and CVN-80.--
        (1) In general.--Together with the budget of the President for 
    each fiscal year through fiscal year 2021 (as submitted to Congress 
    under section 1105(a) of title 31, United States Code) the 
    Secretary of the Navy and the Chief of Naval Operations shall 
    submit a report on the efforts of the Navy to achieve the ship end 
    costs described in subsection (b) for the CVN-79 and CVN-80.
        (2) Elements.--The report under paragraph (1) shall include, 
    with respect to the procurement of the CVN-79 and the CVN-80, the 
    following:
            (A) A description of the progress made toward achieving the 
        ship end costs described in subsection (b), including realized 
        cost savings.
            (B) A description of low value-added or unnecessary 
        elements of program cost that have been reduced or eliminated.
            (C) Cost savings estimates for current and planned 
        initiatives.
            (D) A schedule that includes--
                (i) a plan for spending with phasing of key obligations 
            and outlays;
                (ii) decision points describing when savings may be 
            realized; and
                (iii) key events that must occur to execute initiatives 
            and achieve savings.
            (E) Instances of lower Government estimates used in 
        contract negotiations.
            (F) A description of risks that may result from achieving 
        the procurement end costs specified in subsection (b).
            (G) A description of incentives or rewards provided or 
        planned to be provided to prime contractors for meeting the 
        procurement end costs specified in subsection (b).
    SEC. 127. SENSE OF CONGRESS ON AIRCRAFT CARRIER PROCUREMENT 
      SCHEDULES.
    (a) Findings.--Congress finds the following:
        (1) In the Congressional Budget Office report titled ``An 
    Analysis of the Navy's Fiscal Year 2016 Shipbuilding Plan'', the 
    Office stated as follows: ``To prevent the carrier force from 
    declining to 10 ships in the 2040s, 1 short of its inventory goal 
    of 11, the Navy could accelerate purchases after 2018 to 1 every 
    four years, rather than 1 every five years''.
        (2) In a report submitted to Congress on March 17, 2015, the 
    Secretary of the Navy indicated the Department of the Navy has a 
    requirement of 11 aircraft carriers.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the plan of the Department of the Navy to schedule the 
    procurement of one aircraft carrier every five years will reduce 
    the overall aircraft carrier inventory to 10 aircraft carriers, a 
    level insufficient to meet peacetime and war plan requirements; and
        (2) to accommodate the required aircraft carrier force 
    structure, the Department of the Navy should--
            (A) begin to program construction for the next aircraft 
        carrier to be built after the U.S.S. Enterprise (CVN-80) in 
        fiscal year 2022; and
            (B) program the required advance procurement activities to 
        accommodate the construction of such carrier.
    SEC. 128. REPORT ON P-8 POSEIDON AIRCRAFT.
    (a) Report Required.--Not later than October 1, 2017, the Secretary 
of the Navy shall submit to the congressional defense committees a 
report on potential upgrades to the capabilities of the P-8 Poseidon 
aircraft.
    (b) Elements.--The report under subsection (a) shall include, with 
respect to the P-8 Poseidon aircraft, the following:
        (1) A review of potential upgrades to the sensors onboard the 
    aircraft, including upgrades to intelligence sensors, surveillance 
    sensors, and reconnaissance sensors such as those being fielded on 
    MQ-4 Global Hawk aircraft platforms.
        (2) An assessment of the ability of the Navy to use long-range 
    multispectral imaging systems onboard the aircraft that are similar 
    to such systems being used onboard the MQ-4 Global Hawk aircraft.
    SEC. 129. DESIGN AND CONSTRUCTION OF REPLACEMENT DOCK LANDING SHIP 
      DESIGNATED LX(R) OR AMPHIBIOUS TRANSPORT DOCK DESIGNATED LPD-29.
    (a) In General.--The Secretary of the Navy may enter into a 
contract, beginning with the fiscal year 2017 program year, for the 
design and construction of the replacement dock landing ship designated 
LX(R) or the amphibious transport dock designated LPD-29 using amounts 
authorized to be appropriated for the Department of Defense for 
Shipbuilding and Conversion, Navy.
    (b) Use of Incremental Funding.--With respect to the contract 
entered into under subsection (a), the Secretary may use incremental 
funding to make payments under the contract.
    (c) Condition for Out-year Contract Payments.--The contract entered 
into under subsection (a) shall provide that any obligation of the 
United States to make a payment under such contract for any fiscal year 
after fiscal year 2017 is subject to the availability of appropriations 
for that purpose for such fiscal year.

                     Subtitle D--Air Force Programs

    SEC. 131. EC-130H COMPASS CALL RECAPITALIZATION PROGRAM.
    (a) Authorization.--Subject to subsection (b), the Secretary of the 
Air Force may carry out a program to transfer the primary mission 
equipment of the EC-130H Compass Call aircraft fleet to an aircraft 
platform that the Secretary determines--
        (1) is more operationally effective and survivable than the 
    existing EC-130H Compass Call aircraft platform; and
        (2) meets the requirements of the combatant commands.
    (b) Limitation.--
        (1) Except as provided in paragraph (2), none of the funds 
    authorized to be appropriated by this Act or otherwise made 
    available for fiscal year 2017 or any other fiscal year for 
    procurement may be obligated or expended on the program under 
    subsection (a) until the date on which the Secretary of the Air 
    Force determines that there is a high likelihood that the program 
    will meet the requirements of the combatant commands.
        (2) The limitation in paragraph (1)--
            (A) shall not apply to the development and procurement of 
        the first two aircraft under the program; and
            (B) shall not limit the authority of the Secretary to enter 
        into a contract that may include an option for the future 
        production of aircraft under the program if--
                (i) the exercise of such option is at the discretion of 
            the Secretary; and
                (ii) such option is not exercised until the Secretary 
            determines that there is a high likelihood that the program 
            will meet the requirements of the combatant commands.
    SEC. 132. REPEAL OF REQUIREMENT TO PRESERVE CERTAIN RETIRED C-5 
      AIRCRAFT.
    Section 141 of the National Defense Authorization Act for Fiscal 
Year 2013 (Public Law 112-239; 126 Stat. 1659) is amended by striking 
subsection (d).
    SEC. 133. REPEAL OF REQUIREMENT TO PRESERVE F-117 AIRCRAFT IN 
      RECALLABLE CONDITION.
    Section 136 of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2114) is amended by 
striking subsection (b).
    SEC. 134. PROHIBITION ON AVAILABILITY OF FUNDS FOR RETIREMENT OF A-
      10 AIRCRAFT.
    (a) Prohibition on Availability of Funds for Retirement.--None of 
the funds authorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017 for the Air Force may be obligated or 
expended to retire, prepare to retire, or place in storage or on backup 
aircraft inventory status any A-10 aircraft.
    (b) Additional Limitation on Retirement.--In addition to the 
prohibition in subsection (a), the Secretary of the Air Force may not 
retire, prepare to retire, or place in storage or on backup aircraft 
inventory status any A-10 aircraft until a period of 90 days has 
elapsed following the date on which the Secretary submits to the 
congressional defense committees the report under subsection (e)(2).
    (c) Prohibition on Significant Reductions in Manning Levels.--None 
of the funds authorized to be appropriated by this Act or otherwise 
made available for fiscal year 2017 for the Air Force may be obligated 
or expended to make significant reductions to manning levels with 
respect to any A-10 aircraft squadrons or divisions.
    (d) Minimum Inventory Requirement.--The Secretary of the Air Force 
shall ensure the Air Force maintains a minimum of 171 A-10 aircraft 
designated as primary mission aircraft inventory until a period of 90 
days has elapsed following the date on which the Secretary submits to 
the congressional defense committees the report under subsection 
(e)(2).
    (e) Reports Required.--
        (1) The Director of Operational Test and Evaluation shall 
    submit to the congressional defense committees a report that 
    includes--
            (A) the results and findings of the initial operational 
        test and evaluation of the F-35 aircraft program; and
            (B) a comparison test and evaluation that examines the 
        capabilities of the F-35A and A-10C aircraft in conducting 
        close air support, combat search and rescue, and forward air 
        controller airborne missions.
        (2) Not later than 180 days after the date of the submission of 
    the report under paragraph (1), the Secretary of the Air Force 
    shall submit to the congressional defense committees a report that 
    includes--
            (A) the views of the Secretary with respect to the results 
        of the initial operational test and evaluation of the F-35 
        aircraft program as summarized in the report under paragraph 
        (1), including any issues or concerns of the Secretary with 
        respect to such results;
            (B) a plan for addressing any deficiencies and carrying out 
        any corrective actions identified in such report; and
            (C) short-term and long-term strategies for preserving the 
        capability of the Air Force to conduct close air support, 
        combat search and rescue, and forward air controller airborne 
        missions.
    (f) Special Rule.--
        (1) Subject to paragraph (2), the Secretary of the Air Force 
    may carry out the transition of the A-10 unit at Fort Wayne Air 
    National Guard Base, Indiana, to an F-16 unit as described by the 
    Secretary in the Force Structure Actions map submitted in support 
    of the budget of the President for fiscal year 2017 (as submitted 
    to Congress under section 1105(a) of title 31, United States Code).
        (2) Subsections (a) through (e) shall apply with respect to any 
    A-10 aircraft affected by the transition described in paragraph 
    (1).
    SEC. 135. LIMITATION ON AVAILABILITY OF FUNDS FOR DESTRUCTION OF A-
      10 AIRCRAFT IN STORAGE STATUS.
    (a) Limitation.--None of the funds authorized to be appropriated by 
this Act or otherwise made available for the Air Force for fiscal year 
2017 or any fiscal year thereafter may be obligated or expended to 
scrap, destroy, or otherwise dispose of any potential donor A-10 
aircraft until the date on which the Secretary of the Air Force submits 
to the congressional defense committees the report required under 
section 134(e)(2).
    (b) Notification and Certification.--Not later than 45 days before 
taking any action to scrap, destroy, or otherwise dispose of any A-10 
aircraft in any storage status in the 309th Aerospace Maintenance and 
Regeneration Group, the Secretary of the Air Force shall--
        (1) notify the congressional defense committees of the intent 
    of the Secretary to take such action; and
        (2) certify that the A-10 aircraft subject to such action does 
    not have serviceable wings or other components that could be used 
    to prevent the permanent removal of any active inventory A-10 
    aircraft from flyable status.
    (c) Plan to Prevent Removal A-10 Aircraft From Flyable Status.--The 
Secretary of the Air Force shall--
        (1) include with the materials submitted to Congress in support 
    of the budget of the Department of Defense for fiscal year 2018 (as 
    submitted with the budget of the President under section 1105(a) of 
    title 31, United States Code) a plan to prevent the permanent 
    removal of any active inventory A-10 aircraft from flyable status 
    due to unserviceable wings or any other required component during 
    the period covered by the future years defense plan submitted to 
    Congress under section 221 of title 10, United States Code; and
        (2) carry out such plan to prevent the permanent removal of any 
    active inventory A-10 aircraft from flyable status.
    (d) Potential Donor A-10 Aircraft Defined.--In this section, the 
term ``potential donor A-10 aircraft'' means any A-10 aircraft in any 
storage status in the 309th Aerospace Maintenance and Regeneration 
Group that has serviceable wings or other components that could be used 
to prevent any active inventory A-10 aircraft from being permanently 
removed from flyable status due to unserviceable wings or other 
components.
    SEC. 136. PROHIBITION ON AVAILABILITY OF FUNDS FOR RETIREMENT OF 
      JOINT SURVEILLANCE TARGET ATTACK RADAR SYSTEM AIRCRAFT.
    (a) Prohibition.--Except as provided by subsection (b) and in 
addition to the prohibition under section 144 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
758), none of the funds authorized to be appropriated or otherwise made 
available for fiscal year 2018 for the Air Force may be obligated or 
expended to retire, or prepare to retire, any Joint Surveillance Target 
Attack Radar System aircraft.
    (b) Exception.--The prohibition in subsection (a) shall not apply 
to individual Joint Surveillance Target Attack Radar System aircraft 
that the Secretary of the Air Force determines, on a case-by-case 
basis, to be non-operational because of mishaps, other damage, or being 
uneconomical to repair.
    SEC. 137. ELIMINATION OF ANNUAL REPORT ON AIRCRAFT INVENTORY.
    Section 231a of title 10, United States Code, is amended--
        (1) by striking subsection (e); and
        (2) by redesignating subsection (f) as subsection (e).

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

    SEC. 141. STANDARDIZATION OF 5.56MM RIFLE AMMUNITION.
    (a) Report.--If, on the date that is 180 days after the date of the 
enactment of this Act, the Army and the Marine Corps are using in 
combat two different types of enhanced 5.56mm rifle ammunition, the 
Secretary of Defense shall, on such date, submit to the congressional 
defense committees a report explaining the reasons that the Army and 
the Marine Corps are using different types of such ammunition.
    (b) Standardization Requirement.--Except as provided in subsection 
(c), not later than one year after the date of the enactment of this 
Act, the Secretary of Defense shall ensure that the Army and the Marine 
Corps are using in combat one standard type of enhanced 5.56mm rifle 
ammunition.
    (c) Exception.--Subsection (b) shall not apply in a case in which 
the Secretary of Defense--
        (1) determines that a state of emergency requires the Army and 
    the Marine Corps to use in combat different types of enhanced 
    5.56mm rifle ammunition; and
        (2) certifies to the congressional defense committees that such 
    a determination has been made.
    SEC. 142. FIRE SUPPRESSANT AND FUEL CONTAINMENT STANDARDS FOR 
      CERTAIN VEHICLES.
    (a) Guidance Required.--
        (1) The Secretary of the Army shall issue guidance regarding 
    fire suppressant and fuel containment standards for covered 
    vehicles of the Army.
        (2) The Secretary of the Navy shall issue guidance regarding 
    fire suppressant and fuel containment standards for covered 
    vehicles of the Marine Corps.
    (b) Elements.--The guidance regarding fire suppressant and fuel 
containment standards issued pursuant to subsection (a) shall--
        (1) meet the survivability requirements applicable to each 
    class of covered vehicles;
        (2) include standards for vehicle armor, vehicle fire 
    suppression systems, and fuel containment technologies in covered 
    vehicles; and
        (3) balance cost, survivability, and mobility.
    (c) Report to Congress.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of the Army and the Secretary 
of the Navy shall each submit to the congressional defense committees a 
report that includes--
        (1) the policy guidance established pursuant to subsection (a), 
    set forth separately for each class of covered vehicle; and
        (2) any other information the Secretaries determine to be 
    appropriate.
    (d) Covered Vehicles.--In this section, the term ``covered 
vehicles'' means ground vehicles acquired on or after October 1, 2018, 
under a major defense acquisition program (as such term is defined in 
section 2430 of title 10, United States Code), including light tactical 
vehicles, medium tactical vehicles, heavy tactical vehicles, and ground 
combat vehicles.
    SEC. 143. LIMITATION ON AVAILABILITY OF FUNDS FOR DESTRUCTION OF 
      CERTAIN CLUSTER MUNITIONS.
    (a) Limitation.--Except as provided in subsection (b), none of the 
funds authorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017 for the Department of Defense may be 
obligated or expended for the destruction of cluster munitions until 
the date on which the Secretary of Defense submits the report required 
by subsection (c).
    (b) Exception for Safety.--The limitation under subsection (a) 
shall not apply to the destruction of cluster munitions that the 
Secretary determines--
        (1) are unserviceable as a result of an inspection, test, field 
    incident, or other significant failure to meet performance or 
    logistics requirements; or
        (2) are unsafe or could pose a safety risk if not demilitarized 
    or destroyed.
    (c) Report Required.--
        (1) In general.--Not later than March 1, 2017, the Secretary of 
    Defense shall submit to the congressional defense committees a 
    report that includes each of the following elements:
            (A) A description of the policy of the Department of 
        Defense regarding the use of cluster munitions, including an 
        explanation of the process through which commanders may seek 
        waivers to use such munitions.
            (B) A 10-year projection of the requirements and inventory 
        levels for all cluster munitions that takes into account future 
        production of cluster munitions, any plans for demilitarization 
        of such munitions, any plans for the recapitalization of such 
        munitions, the age of the munitions, storage and safety 
        considerations, and other factors that will affect the size of 
        the inventory.
            (C) A 10-year projection for the cost to achieve the 
        inventory levels projected in subparagraph (B), including the 
        cost for potential demilitarization or disposal of such 
        munitions.
            (D) A 10-year projection for the cost to develop and 
        produce new cluster munitions that comply with the Memorandum 
        of the Secretary of Defense dated June 19, 2008, regarding the 
        Department of Defense policy on cluster munitions and 
        unintended harm to civilians that the Secretary determines are 
        necessary to meet the demands of current operational plans.
            (E) An assessment, by the Chairman of the Joint Chiefs of 
        Staff, of the effects of the projected cluster inventory on 
        operational plans.
            (F) Any other matters that the Secretary determines should 
        be included in the report.
        (2) Form of report.--The report required by paragraph (1) shall 
    be submitted in unclassified form, but may include a classified 
    annex.
    (d) Cluster Munitions Defined.--In this section, the term ``cluster 
munitions'' includes systems delivered by aircraft, cruise missiles, 
artillery, mortars, missiles, tanks, rocket launchers, or naval guns 
that deploy payloads of explosive submunitions that detonate via target 
acquisition, impact, or altitude, or that self-destruct.
    SEC. 144. REPORT ON DEPARTMENT OF DEFENSE MUNITIONS STRATEGY FOR 
      THE COMBATANT COMMANDS.
    (a) Report Required.--Not later than April 1, 2017, the Secretary 
of Defense shall submit to the congressional defense committees a 
report on the munitions strategy for the combatant commands for the 
six-year period beginning on January 1, 2017.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (1) For each year covered by the report, an identification of 
    the munitions requirements of the combatant commands, including--
            (A) plans, programming, and budgeting for each type of 
        munition; and
            (B) the inventory of each type of munition.
        (2) An assessment of any gaps and shortfalls with respect to 
    munitions determined to be essential to the ability of the 
    combatant commands to fulfill mission requirements.
        (3) An assessment of how current and planned munitions programs 
    may affect operational concepts and capabilities of the combatant 
    commands.
        (4) An identification of limitations in relevant industrial 
    bases and a description of necessary munitions investments.
        (5) An assessment of how munitions capability and capacity may 
    be affected by changes consistent with the memorandum of the 
    Secretary of Defense dated June 19, 2008, regarding the policy of 
    the Department of Defense on cluster munitions and unintended harm 
    to civilians.
        (6) Any other matters the Secretary determines appropriate.
    SEC. 145. MODIFICATIONS TO REPORTING ON USE OF COMBAT MISSION 
      REQUIREMENTS FUNDS.
    Section 123 of the Ike Skelton National Defense Authorization Act 
for Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4158; 10 U.S.C. 167 
note) is amended--
        (1) in the section heading, by striking ``quarterly'' and 
    inserting ``annual'';
        (2) in the subsection heading of subsection (a), by striking 
    ``Quarterly'' and inserting ``Annual''; and
        (3) by striking ``quarter'' each place it appears and inserting 
    ``year''.
    SEC. 146. REPORT ON ALTERNATIVE MANAGEMENT STRUCTURES FOR THE F-35 
      JOINT STRIKE FIGHTER PROGRAM.
    (a) In General.--Not later than March 31, 2017, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on potential alternative management structures for the F-35 joint 
strike fighter program.
    (b) Elements.--The report under subsection (a) shall include the 
following:
        (1) An analysis of potential alternative management structures 
    for the F-35 joint strike fighter program, including--
            (A) continuation of the joint program office for the 
        program;
            (B) the establishment of separate program offices for the 
        program in the Department of the Air Force and the Department 
        of the Navy;
            (C) the establishment of separate program offices for each 
        variant of the F-35A, F-35B, and F-35C;
            (D) division of responsibilities for the program between a 
        joint program office and the military departments; and
            (E) such other alternative management structures as the 
        Secretary determines to be appropriate.
        (2) An evaluation of the benefits and drawbacks of each 
    alternative management structure analyzed in the report with 
    respect to--
            (A) cost;
            (B) alignment of responsibility and accountability; and
            (C) the adequacy of representation from military 
        departments and program partners.
    (c) Form.--The report under subsection (a) shall be submitted in 
unclassified form, but may include a classified annex.
    SEC. 147. COMPTROLLER GENERAL REVIEW OF F-35 LIGHTNING II AIRCRAFT 
      SUSTAINMENT SUPPORT.
    (a) Review.--Not later than September 30, 2017, the Comptroller 
General of the United States shall submit to the congressional defense 
committees a report on the sustainment support structure for the F-35 
Lightning II aircraft program.
    (b) Elements.--The review under subsection (a) shall include, with 
respect to the F-35 Lightning II aircraft program, the following:
        (1) The status of the sustainment support strategy for the 
    program, including goals for personnel training, required 
    infrastructure, and fleet readiness.
        (2) Approaches, including performance-based logistics, 
    considered in developing the sustainment support strategy for the 
    program.
        (3) Other information regarding sustainment and logistics 
    support for the program that the Comptroller General determines to 
    be of critical importance to the long-term viability of the 
    program.
    SEC. 148. BRIEFING ON ACQUISITION STRATEGY FOR GROUND MOBILITY 
      VEHICLE.
    (a) Briefing Required.--Not later than 180 days after the date of 
the enactment of this Act, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, in consultation with the 
Secretary of the Army, shall provide a briefing to the congressional 
defense committees on the acquisition strategy for the Ground Mobility 
Vehicle for use with the Global Response Force of the 82nd Airborne 
Division.
    (b) Elements.--The briefing under subsection (a) shall include an 
assessment of the following:
        (1) The feasability of acquiring the Ground Mobility Vehicle--
            (A) as a commercially available off-the-shelf item (as such 
        term is defined in section 104 of title 41, United States 
        Code); or
            (B) as a modified version of such an item.
        (2) Whether acquiring the Ground Mobility Vehicle in a manner 
    described in paragraph (1) would satisfy the requirements of the 
    program and reduce the life-cycle cost of the program.
        (3) Whether the acquisition strategy for the Ground Mobility 
    Vehicle meets the focus areas specified in the most recent version 
    of the Better Buying Power initiative of the Secretary of Defense.
        (4) Whether including an active safety system in the Ground 
    Mobility Vehicle, such as the electronic stability control system 
    used on the joint light tactical vehicle, would reduce the risk of 
    vehicle rollover.
    SEC. 149. STUDY AND REPORT ON OPTIMAL MIX OF AIRCRAFT CAPABILITIES 
      FOR THE ARMED FORCES.
    (a) Study.--
        (1) In general.--The Secretary of Defense shall conduct a study 
    to determine--
            (A) an optimal mix of short-range fighter-class strike 
        aircraft and long-range strike aircraft for the use of the 
        Armed Forces during the covered period;
            (B) an optimal mix of manned aerial platforms and unmanned 
        aerial platforms for the use of the Armed Forces during such 
        period; and
            (C) an optimal mix of other aircraft and capabilities for 
        the use of the Armed Forces during such period, including--
                (i) long-range, medium-range, and short-range 
            intelligence, surveillance, reconnaissance, or strike 
            aircraft, or combination of such aircraft;
                (ii) aircraft with varying observability 
            characteristics;
                (iii) land-based and sea-based aircraft;
                (iv) advanced legacy fourth-generation aircraft 
            platforms of proven design;
                (v) next generation air superiority capabilities; and
                (vi) advanced technology innovations.
        (2) Considerations.--In making the determinations under 
    paragraph (1), the Secretary shall consider defense strategy, 
    critical assumptions, priorities, force size, and cost.
    (b) Report.--
        (1) In general.--Not later than April 14, 2017, the Secretary 
    shall submit to the appropriate congressional committees a report 
    that includes the following:
            (A) The results of the study conducted under subsection 
        (a).
            (B) A discussion of the specific assumptions, observations, 
        conclusions, and recommendations of the study.
            (C) A description of the modeling and analysis techniques 
        used for the study.
            (D) A plan for fielding complementary aircraft and 
        capabilities identified as an optimal mix in the study under 
        subsection (a).
            (E) A plan to meet objectives and fulfill the warfighting 
        capability and capacity requirements of the combatant commands 
        using the aircraft and capabilities described in subsection 
        (a).
        (2) Form.--The report under paragraph (1) may be submitted in 
    classified form, but shall include an unclassified executive 
    summary.
        (3) Nonduplication of effort.--If any information required 
    under paragraph (1) has been included in another report or 
    notification previously submitted to any of the appropriate 
    congressional committees by law, the Secretary may provide a list 
    of such reports and notifications at the time of submitting the 
    report required under such paragraph instead of including such 
    information in such report.
        (4) Definitions.--ln this subsection:
            (A) The term ``appropriate congressional committees'' means 
        the congressional defense committees, the Select Committee on 
        Intelligence of the Senate, and the Permanent Select Committee 
        on Intelligence of the House of Representatives.
            (B) The term ``covered period'' means the period beginning 
        on the date of the enactment of this Act and ending on January 
        1, 2030.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Reports and Other Matters

Sec. 231. Strategy for assured access to trusted microelectronics.
Sec. 232. Pilot program on evaluation of commercial information 
          technology.
Sec. 233. Pilot program for the enhancement of the research, 
          development, test, and evaluation centers of the Department of 
          Defense.
Sec. 234. Pilot program on modernization and fielding of electromagnetic 
          spectrum warfare systems and electronic warfare capabilities.
Sec. 235. Pilot program on disclosure of certain sensitive information 
          to federally funded research and development centers.
Sec. 236. Pilot program on enhanced interaction between the Defense 
          Advanced Research Projects Agency and the service academies.
Sec. 237. Independent review of F/A-18 physiological episodes and 
          corrective actions.
Sec. 238. B-21 bomber development program accountability matrices.
Sec. 239. Study on helicopter crash prevention and mitigation 
          technology.
Sec. 240. Strategy for Improving Electronic and Electromagnetic Spectrum 
          Warfare Capabilities.
Sec. 241. Sense of Congress on development and fielding of fifth 
          generation airborne systems.

              Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
    Funds are hereby authorized to be appropriated for fiscal year 2017 
for the use of the Department of Defense for research, development, 
test, and evaluation, as specified in the funding table in section 
4201.

    Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. LABORATORY QUALITY ENHANCEMENT PROGRAM.
    (a) In General.--The Secretary of Defense, acting through the 
Assistant Secretary of Defense for Research and Engineering, shall 
carry out a program to be known as the ``Laboratory Quality Enhancement 
Program'' under which the Secretary shall establish the panels 
described in subsection (b) and direct such panels--
        (1) to review and make recommendations to the Secretary with 
    respect to--
            (A) existing policies and practices affecting the science 
        and technology reinvention laboratories to improve the mission 
        effectiveness of such laboratories; and
            (B) new initiatives proposed by the science and technology 
        reinvention laboratories;
        (2) to support implementation of current and future initiatives 
    affecting the science and technology reinvention laboratories; and
        (3) to conduct assessments or data analysis on such other 
    issues as the Secretary determines to be appropriate.
    (b) Panels.--The panels described in this subsection are:
        (1) A panel on personnel, workforce development, and talent 
    management.
        (2) A panel on facilities, equipment, and infrastructure.
        (3) A panel on research strategy, technology transfer, and 
    industry and university partnerships.
        (4) A panel on governance and oversight processes.
    (c) Composition of Panels.--(1) Each panel described in paragraphs 
(1) through (3) of subsection (b) may be composed of subject matter and 
technical management experts from--
        (A) laboratories and research centers of the Army, Navy, and 
    Air Force;
        (B) appropriate Defense Agencies;
        (C) the Office of the Assistant Secretary of Defense for 
    Research and Engineering; and
        (D) such other entities as the Secretary determines to be 
    appropriate.
    (2) The panel described in subsection (b)(4) shall be composed of--
        (A) the Director of the Army Research Laboratory;
        (B) the Director of the Air Force Research Laboratory;
        (C) the Director of the Naval Research Laboratory;
        (D) the Director of the Engineer Research and Development 
    Center of the Army Corps of Engineers; and
        (E) such other members as the Secretary determines to be 
    appropriate.
    (d) Governance of Panels.--(1) The chairperson of each panel shall 
be selected by its members.
    (2) Each panel, in coordination with the Assistant Secretary of 
Defense for Research and Engineering, shall transmit to the Science and 
Technology Executive Committee of the Department of Defense such 
information or findings on topics requiring decision or approval as the 
panel considers appropriate.
    (e) Discharge of Certain Authorities to Conduct Personnel 
Demonstration Projects.--Subparagraph (C) of section 342(b)(3) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 2721), as added by section 1114(a) of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-315), is 
amended by inserting before the period at the end the following: 
``through the Assistant Secretary of Defense for Research and 
Engineering (who shall place an emphasis in the exercise of such 
authorities on enhancing efficient operations of the laboratory and who 
may, in exercising such authorities, request administrative support 
from science and technology reinvention laboratories to review, 
research, and adjudicate personnel demonstration project proposals)''.
    (f) Science and Technology Reinvention Laboratory Defined.--In this 
section, the term ``science and technology reinvention laboratory'' 
means a science and technology reinvention laboratory designated under 
section 1105 of the National Defense Authorization Act for Fiscal Year 
2010 (Public Law 111-84; 10 U.S.C. 2358 note), as amended.
    SEC. 212. MODIFICATION OF MECHANISMS TO PROVIDE FUNDS FOR DEFENSE 
      LABORATORIES FOR RESEARCH AND DEVELOPMENT OF TECHNOLOGIES FOR 
      MILITARY MISSIONS.
    (a) Amount Authorized Under Current Mechanism.--Paragraph (1) of 
subsection (a) of section 219 of the Duncan Hunter National Defense 
Authorization Act for Fiscal Year 2009 (10 U.S.C. 2358 note) is amended 
in the matter before subparagraph (A) by striking ``not more than three 
percent'' and inserting ``not less than two percent and not more than 
four percent''.
    (b) Additional Mechanism to Provide Funds.--Such subsection is 
further amended by adding at the end the following new paragraph:
        ``(3) Fee.--After consultation with the science and technology 
    executive of the military department concerned, the director of a 
    defense laboratory may charge customer activities a fixed 
    percentage fee, in addition to normal costs of performance, in 
    order to obtain funds to carry out activities authorized by this 
    subsection. The fixed fee may not exceed four percent of costs.''.
    (c) Modification of Cost Limit Compliance for Infrastructure 
Projects.--Subsection (b)(4) of such section is amended by adding at 
the end the following new subparagraph:
            ``(C) Section 2802 of such title, with respect to 
        construction projects that exceed the cost specified in 
        subsection (a)(2) of section 2805 of such title for certain 
        unspecified minor military construction projects for 
        laboratories.''.
    (d) Repeal of Sunset.--Such section is amended by striking 
subsection (d).
    SEC. 213. MAKING PERMANENT AUTHORITY FOR DEFENSE RESEARCH AND 
      DEVELOPMENT RAPID INNOVATION PROGRAM.
    Section 1073 of the Ike Skelton National Defense Authorization Act 
for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 2359 note) is 
amended--
        (1) in subsection (d), by striking ``for each of fiscal years 
    2011 through 2023 may be used for any such fiscal year'' and 
    inserting ``for a fiscal year may be used for such fiscal year''; 
    and
        (2) by striking subsection (f).
    SEC. 214. AUTHORIZATION FOR NATIONAL DEFENSE UNIVERSITY AND DEFENSE 
      ACQUISITION UNIVERSITY TO ENTER INTO COOPERATIVE RESEARCH AND 
      DEVELOPMENT AGREEMENTS.
    (a) National Defense University.--Section 2165 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) Cooperative Research and Development Agreements.--(1) In 
engaging in research and development projects pursuant to subsection 
(a) of section 2358 of this title by a contract, cooperative agreement, 
or grant pursuant to subsection (b)(1) of such section, the Secretary 
may enter into such contract or cooperative agreement or award such 
grant through the National Defense University.
    ``(2) The National Defense University shall be considered a 
Government-operated Federal laboratory for purposes of section 12 of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3710a).''.
    (b) Defense Acquisition University.--Section 1746 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Cooperative Research and Development Agreements.--(1) In 
engaging in research and development projects pursuant to subsection 
(a) of section 2358 of this title by a contract, cooperative agreement, 
or grant pursuant to subsection (b)(1) of such section, the Secretary 
may enter into such contract or cooperative agreement or award such 
grant through the Defense Acquisition University.
    ``(2) The Defense Acquisition University shall be considered a 
Government-operated Federal laboratory for purposes of section 12 of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
3710a).''.
    SEC. 215. MANUFACTURING ENGINEERING EDUCATION GRANT PROGRAM.
    Section 2196 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2196. Manufacturing engineering education program
    ``(a) Establishment of Manufacturing Engineering Education 
Program.--(1) The Secretary of Defense shall establish a program under 
which the Secretary makes grants or other awards to support--
        ``(A) the enhancement of existing programs in manufacturing 
    engineering education to further a mission of the department; or
        ``(B) the establishment of new programs in manufacturing 
    engineering education that meet such requirements.
    ``(2) Grants and awards under this section may be made to industry, 
not-for-profit institutions, institutions of higher education, or to 
consortia of such institutions or industry.
    ``(3) The Secretary shall establish the program in consultation 
with the Secretary of Education, the Director of the National Science 
Foundation, the Director of the Office of Science and Technology 
Policy, and the secretaries of such other relevant Federal agencies as 
the Secretary considers appropriate.
    ``(4) The Secretary shall ensure that the program is coordinated 
with Department programs associated with advanced manufacturing.
    ``(5) The program shall be known as the `Manufacturing Engineering 
Education Program'.
    ``(b) Geographical Distribution of Grants and Awards.--In awarding 
grants and other awards under this subsection, the Secretary shall, to 
the maximum extent practicable, avoid geographical concentration of 
awards.
    ``(c) Covered Programs.--A program of engineering education 
supported pursuant to this section shall meet the requirements of this 
section.
    ``(d) Components of Program.--The program of education for which 
such a grant is made shall be a consolidated and integrated 
multidisciplinary program of education with an emphasis on the 
following components:
        ``(1) Multidisciplinary instruction that encompasses the total 
    manufacturing engineering enterprise and that may include--
            ``(A) manufacturing engineering education and training 
        through classroom activities, laboratory activities, thesis 
        projects, individual or team projects, internships, cooperative 
        work-study programs, and interactions with industrial 
        facilities, consortia, or such other activities and 
        organizations in the United States and foreign countries as the 
        Secretary considers appropriate;
            ``(B) faculty development programs;
            ``(C) recruitment of educators highly qualified in 
        manufacturing engineering to teach or develop manufacturing 
        engineering courses;
            ``(D) presentation of seminars, workshops, and training for 
        the development of specific manufacturing engineering skills;
            ``(E) activities involving interaction between students and 
        industry, including programs for visiting scholars, personnel 
        exchange, or industry executives;
            ``(F) development of new, or updating and modification of 
        existing, manufacturing curriculum, course offerings, and 
        education programs;
            ``(G) establishment of programs in manufacturing workforce 
        training;
            ``(H) establishment of joint manufacturing engineering 
        programs with defense laboratories and depots; and
            ``(I) expansion of manufacturing training and education 
        programs and outreach for members of the armed forces, 
        dependents and children of such members, veterans, and 
        employees of the Department of Defense.
        ``(2) Opportunities for students to obtain work experience in 
    manufacturing through such activities as internships, summer job 
    placements, or cooperative work-study programs.
        ``(3) Faculty and student engagement with industry that is 
    directly related to, and supportive of, the education of students 
    in manufacturing engineering because of--
            ``(A) the increased understanding of manufacturing 
        engineering challenges and potential solutions; and
            ``(B) the enhanced quality and effectiveness of the 
        instruction that result from that increased understanding.
    ``(e) Proposals.--The Secretary of Defense shall solicit proposals 
for grants and other awards to be made pursuant to this section for the 
support of programs of manufacturing engineering education that are 
consistent with the purposes of this section.
    ``(f) Merit Competition.--Applications for awards shall be 
evaluated on the basis of merit pursuant to competitive procedures 
prescribed by the Secretary.
    ``(g) Selection Criteria.--The Secretary may select a proposal for 
an award pursuant to this section if the proposal, at a minimum, does 
each of the following:
        ``(1) Contains innovative approaches for improving engineering 
    education in manufacturing technology.
        ``(2) Demonstrates a strong commitment by the proponents to 
    apply the resources necessary to achieve the objectives for which 
    the award is to be made.
        ``(3) Provides for effective engagement with industry or 
    government organizations that supports the instruction to be 
    provided in the proposed program and is likely to improve 
    manufacturing engineering and technology.
        ``(4) Demonstrates a significant level of involvement of United 
    States industry in the proposed instructional and research 
    activities.
        ``(5) Is likely to attract superior students and promote 
    careers in manufacturing engineering.
        ``(6) Proposes to involve fully qualified personnel who are 
    experienced in manufacturing engineering education and technology.
        ``(7) Proposes a program that, within three years after the 
    award is made, is likely to attract from sources other than the 
    Federal Government the financial and other support necessary to 
    sustain such program.
        ``(8) Proposes to achieve a significant level of participation 
    by women, members of minority groups, and individuals with 
    disabilities through active recruitment of students from among such 
    persons.
        ``(9) Trains students in advanced manufacturing and in relevant 
    emerging technologies and production processes.
    ``(h) Institution of Higher Education Defined.--In this section, 
the term `institution of higher education' has the meaning given such 
term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
1001(a)).''.
    SEC. 216. NOTIFICATION REQUIREMENT FOR CERTAIN RAPID PROTOTYPING, 
      EXPERIMENTATION, AND DEMONSTRATION ACTIVITIES.
    (a) Notice Required.--The Secretary of the Navy shall not initiate 
a covered activity until a period of 10 business days has elapsed 
following the date on which the Secretary submits to the congressional 
defense committees the notice described in subsection (b) with respect 
to such activity.
    (b) Elements of Notice.--The notice described in this subsection is 
a written notice of the intention of the Secretary to initiate a 
covered activity. Each such notice shall include the following:
        (1) A description of the activity.
        (2) Estimated costs and funding sources for the activity, 
    including a description of any cost-sharing or in-kind support 
    arrangements with other participants.
        (3) A description of any transition agreement, including the 
    identity of any partner organization that may receive the results 
    of the covered activity under such an agreement.
        (4) Identification of major milestones and the anticipated date 
    of completion of the activity.
    (c) Covered Activity.--In this section, the term ``covered 
activity'' means a rapid prototyping, experimentation, or demonstration 
activity carried out under program element 0603382N.
    (d) Sunset.--The requirements of this section shall terminate five 
years after the date of the enactment of this Act.
    SEC. 217. INCREASED MICRO-PURCHASE THRESHOLD FOR RESEARCH PROGRAMS 
      AND ENTITIES.
    (a) Increased Micro-purchase Threshold for Basic Research Programs 
and Activities of the Department of Defense Science and Technology 
Reinvention Laboratories.--
        (1) In general.--Chapter 137 of title 10, United States Code, 
    as amended by section 821(a), is further amended by adding at the 
    end the following new section:
``Sec. 2339. Micro-purchase threshold for basic research programs and 
    activities of the Department of Defense science and technology 
    reinvention laboratories
    ``Notwithstanding subsection (a) of section 1902 of title 41, the 
micro-purchase threshold for the Department of Defense for purposes of 
such section is $10,000 for purposes of basic research programs and for 
the activities of the Department of Defense science and technology 
reinvention laboratories.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter, as amended by section 821b, is further amended by 
    adding at the end the following new item:

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

    (b) Increased Micro-purchase Threshold for Universities, 
Independent Research Institutes, and Nonprofit Research 
Organizations.--Section 1902 of title 41, United States Code, is 
amended--
        (1) in subsection (a)--
            (A) by striking ``For purposes'' and inserting ``(1) Except 
        as provided in sections 2338 and 2339 of title 10 and paragraph 
        (2) of this subsection, for purposes''; and
            (B) by adding at the end the following new paragraph:
    ``(2) For purposes of this section, the micro-purchase threshold 
for procurement activities administered under sections 6303 through 
6305 of title 31 by institutions of higher education (as defined in 
section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), 
or related or affiliated nonprofit entities, or by nonprofit research 
organizations or independent research institutes is--
        ``(A) $10,000; or
        ``(B) such higher threshold as determined appropriate by the 
    head of the relevant executive agency and consistent with clean 
    audit findings under chapter 75 of title 31, internal institutional 
    risk assessment, or State law.''; and
        (2) in subsections (d) and (e), by striking ``not greater than 
    $3,000'' and inserting ``with a price not greater than the micro-
    purchase threshold''.
    SEC. 218. IMPROVED BIOSAFETY FOR HANDLING OF SELECT AGENTS AND 
      TOXINS.
    (a) Quality Control and Quality Assurance Program.--The Secretary 
of Defense, acting through the executive agent for the biological 
select agent and toxin biosafety program of the Department of Defense, 
shall carry out a program to implement certain quality control and 
quality assurance measures at each covered facility.
    (b) Quality Control and Quality Assurance Measures.--Subject to 
subsection (c), the quality control and quality assurance measures 
implemented at each covered facility under subsection (a) shall include 
the following:
        (1) Designation of an external manager to oversee quality 
    assurance and quality control.
        (2) Environmental sampling and inspection.
        (3) Production procedures that prohibit operations where live 
    biological select agents and toxins are used in the same laboratory 
    where viability testing is conducted.
        (4) Production procedures that prohibit work on multiple 
    organisms or multiple strains of one organism within the same 
    biosafety cabinet.
        (5) A video surveillance program that uses video monitoring as 
    a tool to improve laboratory practices in accordance with 
    regulatory requirements.
        (6) Formal, recurring data reviews of production in an effort 
    to identify data trends and nonconformance issues before such 
    issues affect end products.
        (7) Validated protocols for production processes to ensure that 
    process deviations are adequately vetted prior to implementation.
        (8) Maintenance and calibration procedures and schedules for 
    all tools, equipment, and irradiators.
    (c) Waiver.--In carrying out the program under subsection (a), the 
Secretary may waive any of the quality control and quality assurance 
measures required under subsection (b) in the interest of national 
defense.
    (d) Study and Report Required.--
        (1) Study.--The Secretary of Defense shall carry out a study to 
    evaluate--
            (A) the feasibility of consolidating covered facilities 
        within a unified command to minimize risk;
            (B) opportunities to partner with industry for the 
        production of biological select agents and toxins and related 
        services in lieu of maintaining such capabilities within the 
        Department of the Army; and
            (C) whether operations under the biological select agent 
        and toxin production program should be transferred to another 
        government or commercial laboratory that may be better suited 
        to execute production for non-Department of Defense customers.
        (2) Report.--Not later than February 1, 2017, the Secretary 
    shall submit to the congressional defense committees a report on 
    the results of the study under paragraph (1).
    (e) Comptroller General Review.--Not later than September 1, 2017, 
the Comptroller General of the United States shall submit to the 
congressional defense committees a report that includes the following:
        (1) A review of--
            (A) the actions taken by the Department of Defense to 
        address the findings and recommendations of the report of the 
        Department of the Army titled ``Individual and Institutional 
        Accountability for the Shipment of Viable Bacillus Anthracis 
        from Dugway Proving Grounds'', dated December 15, 2015, 
        including any actions taken to address the culture of 
        complacency in the biological select agent and toxin production 
        program identified in such report; and
            (B) the progress of the Secretary in carrying out the 
        program under subsection (a).
        (2) An analysis of the study and report under subsection (d).
    (f) Definitions.--In this section:
        (1) The term ``biological select agent and toxin'' means any 
    agent or toxin identified under--
            (A) section 331.3 of title 7, Code of Federal Regulations;
            (B) section 121.3 or section 121.4 of title 9, Code of 
        Federal Regulations; or
            (C) section 73.3 or section 73.4 of title 42, Code of 
        Federal Regulations.
        (2) The term ``covered facility'' means any facility of the 
    Department of Defense that produces biological select agents and 
    toxins.
    SEC. 219. DESIGNATION OF DEPARTMENT OF DEFENSE SENIOR OFFICIAL WITH 
      PRINCIPAL RESPONSIBILITY FOR DIRECTED ENERGY WEAPONS.
    (a) Designation of Senior Official.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall designate a 
    senior official already serving within the Department of Defense as 
    the official with principal responsibility for the development and 
    demonstration of directed energy weapons for the Department.
        (2) Development of strategic plan.--
            (A) In general.--The senior official designated under 
        paragraph (1) shall develop a detailed strategic plan to 
        develop, mature, and transition directed energy technologies to 
        acquisition programs of record.
            (B) Roadmap.--Such strategic plan shall include a strategic 
        roadmap for the development and fielding of directed energy 
        weapons and key enabling capabilities for the Department, 
        identifying and coordinating efforts across military 
        departments to achieve overall joint mission effectiveness.
        (3) Acceleration of development and fielding of directed energy 
    weapons capabilities.--
            (A) In general.--To the degree practicable, the senior 
        official designated under paragraph (1) shall use the 
        flexibility of the policies of the Department in effect on the 
        day before the date of the enactment of this Act, or any 
        successor policies, to accelerate the development and fielding 
        of directed energy capabilities.
            (B) Engagement.--The Secretary shall use the flexibility of 
        the policies of the Department in effect on the day before the 
        date of the enactment of this Act, or any successor policies, 
        to ensure engagement with defense and private industries, 
        research universities, and unaffiliated, nonprofit research 
        institutions.
        (4) Advice for exercises and demonstrations.--The senior 
    official designated under paragraph (1) shall, to the degree 
    practicable, provide technical advice and support to entities in 
    the Department of Defense and the military departments conducting 
    exercises or demonstrations with the purpose of improving the 
    capabilities of or operational viability of technical capabilities 
    supporting directed energy weapons, including supporting military 
    utility assessments of the relevant cost and benefits of directed 
    energy weapon systems.
        (5) Support for development of requirements.--The senior 
    official designated under paragraph (1) shall coordinate with the 
    military departments, Defense Agencies, and the Joint Directed 
    Energy Transition Office to define requirements for directed energy 
    capabilities that address the highest priority warfighting 
    capability gaps of the Department.
        (6) Availability of information.--The Secretary of Defense 
    shall ensure that the senior official designated under paragraph 
    (1) has access to such information on programs and activities of 
    the military departments and other defense agencies as the 
    Secretary considers appropriate to coordinate departmental directed 
    energy efforts.
    (b) Joint Directed Energy Transition Office.--
        (1) Redesignation.--The High Energy Laser Joint Technology 
    Office of the Department of Defense is hereby redesignated as the 
    ``Joint Directed Energy Transition Office'' (in this subsection 
    referred to as the ``Office''), and shall report to the official 
    designated under subsection (a)(1).
        (2) Additional functions.--In addition to the functions and 
    duties of the Office in effect on the day before the date of the 
    enactment of this Act, the Office shall assist the senior official 
    designated under paragraph (1) of subsection (a) in carrying out 
    paragraphs (2) through (5) of such subsection.
        (3) Funding.--The Secretary may make available such funds to 
    the Office for basic research, applied research, advanced 
    technology development, prototyping, studies and analyses, and 
    organizational support as the Secretary considers appropriate to 
    support the efficient and effective development of directed energy 
    systems and technologies and transition of those systems and 
    technologies into acquisition programs or operational use.
    SEC. 220. RESTRUCTURING OF THE DISTRIBUTED COMMON GROUND SYSTEM OF 
      THE ARMY.
    (a) In General.--Not later that April 1, 2017, the Secretary of the 
Army shall restructure versions of the distributed common ground system 
of the Army after Increment 1--
        (1) by discontinuing development of new software code, 
    excluding the configuration and testing of system interfaces to 
    commercial, open source, and existing Government off the shelf 
    (GOTS) software, of any component of the system for which there is 
    commercial, open source, or Government off the shelf software that 
    is capable of fulfilling at least 80 percent of the system 
    requirements applicable to such component; and
        (2) by conducting a review of the acquisition strategy of the 
    program to ensure that procurement of commercial software is the 
    preferred method of meeting program requirements for major system 
    components.
    (b) Limitation.--The Secretary of the Army shall not award any 
contract for the development of new component software capability for 
the distributed common ground system of the Army if such a capability 
is already a commercial item or open source, except for configuration 
of capabilities that are incidental to and necessary for the proper 
functioning of the system.
    (c) Report Required.--
        (1) Requirement.--Not later than March 1, 2018, the Under 
    Secretary of Defense for Acquisition, Technology and Logistics, in 
    consultation with the Director, Operational Test and Evaluation, 
    shall submit to the congressional defense committees a report on 
    the Increment 2 of the distributed common ground system of the 
    Army.
        (2) Elements of report.--The report required by paragraph (1) 
    shall include, at a minimum, the following:
            (A) The overall assessment of the system and each 
        individual major component of the system.
            (B) The status of alignment with the Intelligence Community 
        Information Technology Enterprise (IC-ITE).
            (C) The ease of use of Increment 2 as compared with 
        Increment 1 for operators in deployed environments.
            (D) The extent to which a common, synchronized view of all 
        system data is globally available to all system users, at all 
        times.
            (E) The level of maturity of the technologies underlying 
        core system components and application programming interfaces.
            (F) The extent to which program operators can move data 
        seamlessly between different components of the system.
    SEC. 221. LIMITATION ON AVAILABILITY OF FUNDS FOR THE COUNTERING 
      WEAPONS OF MASS DESTRUCTION SYSTEM CONSTELLATION.
    (a) Limitation.--Not more than 50 percent of the funds authorized 
to be appropriated by this Act or otherwise made available for fiscal 
year 2017 for the countering weapons of mass destruction situational 
awareness information system commonly known as ``Constellation'' may be 
obligated or expended for research, development, or prototyping for 
such system until the report required by subsection (b)(4) has been 
delivered to the congressional defense committees.
    (b) Independent Review and Assessment.--
        (1) In general.--The Secretary of Defense shall provide for an 
    independent review and assessment of the requirements and 
    implementation for research, development, and prototyping for the 
    Constellation system prior to a Milestone A decision or other 
    operational use.
        (2) Elements of independent review.--The independent review 
    provided for under paragraph (1) shall include the following:
            (A) A review of the major software components of the system 
        and an explanation of the requirements of the Department of 
        Defense with respect to each such component.
            (B) A review of the requirements validated in the 
        Information System Initial Capabilities Document (ISICD) and 
        capability gaps identified for duplication and redundancy with 
        other validated information technology requirements and 
        capability gaps.
            (C) Identification of elements and applications of the 
        system that cannot be implemented using the existing technical 
        infrastructure and tools of the Department of Defense or the 
        infrastructure and tools in development.
            (D) An overview of a security plan to achieve an accredited 
        cross-domain solution system, including security milestones and 
        proposed security architecture to mitigate both insider and 
        outsider threats.
            (E) Identification of the planned categories of end-users 
        of the system, linked to organizations, mission requirements, 
        and concept of operations, the expected total number of end-
        users, and the associated permissions granted to such users.
        (3) Entity conducting independent review and assessment.--The 
    Secretary shall ensure that--
            (A) the independent review and assessment provided for 
        under paragraph (1) is conducted by a federally funded research 
        and development center selected (or entered into an arrangement 
        with) by the Secretary or such other entity as the Secretary 
        considers appropriate; and
            (B) such center or entity provides periodic updates to the 
        congressional defense committees on such independent review and 
        assessment prior to the completion of the independent review 
        and assessment.
        (4) Report on independent review and assessment.--The Secretary 
    shall submit to the congressional defense committees a report 
    containing--
            (A) the findings of the center or entity selected (or 
        entered into an arrangement with) under paragraph (3)(A) with 
        respect to the independent review and assessment conducted by 
        such center or entity pursuant to such paragraph; and
            (B) an assessment of the need to continue Constellation 
        research, development, and prototyping.
    SEC. 222. LIMITATION ON AVAILABILITY OF FUNDS FOR DEFENSE 
      INNOVATION UNIT EXPERIMENTAL.
    (a) Limitation.--
        (1) Operation and maintenance.--Of the funds specified in 
    subsection (c)(1), not more than 75 percent may be obligated or 
    expended until the date on which the Secretary of Defense submits 
    to the congressional defense committees the report under subsection 
    (b).
        (2) Research, development, test, and evaluation.--Of the funds 
    specified in subsection (c)(2), not more than 25 percent may be 
    obligated or expended until the date on which the Secretary submits 
    to the congressional defense committees the report under subsection 
    (b).
    (b) Report Required.--The Secretary of Defense shall submit to the 
congressional defense committees a report on the Defense Innovation 
Unit Experimental. Such report shall include the following:
        (1) The charter and mission statement of the Unit.
        (2) A description of--
            (A) the management and operations of the Unit, including--
                (i) the governance structure of the Unit;
                (ii) the process for coordinating and deconflicting the 
            activities of the Unit with similar activities of the Small 
            Business Innovation Research Program, military departments, 
            Defense Agencies, and other departments and agencies of the 
            Federal Government, including activities carried out by In-
            Q-Tel, the Defense Advanced Research Projects Agency, and 
            Department of Defense laboratories;
                (iii) the direct staffing requirements of the Unit, 
            including a description of the desired skills and expertise 
            of such staff at each location;
                (iv) the number of civilian and military personnel 
            provided by the military departments and Defense Agencies 
            to support the Unit; and
                (v) any planned expansion to new sites, the metrics 
            used to identify such sites, and an explanation of how such 
            expansion will provide access to innovations of 
            nontraditional defense contractors (as such term is defined 
            in section 2302 of title 10, United States Code) that are 
            not otherwise accessible; and
            (B) policies and practices that will enable the Unit to 
        best support Department of Defense missions, including--
                (i) the metrics used to measure the effectiveness of 
            the Unit;
                (ii) how compliance with Department of Defense or 
            Federal Government requirements could affect the ability of 
            nontraditional defense contractors (as such term is defined 
            in section 2302 of title 10, United States Code) to market 
            products and obtain funding;
                (iii) how to treat intellectual property that has been 
            developed with little or no government funding;
                (iv) detailed justification for the expansion of the 
            mission of the Unit, including authority to use research 
            and development agreements, contracts, and merit-based 
            prize competitions to explore emerging technologies and 
            additional physical locations;
                (v) a description of how existing Department of Defense 
            agencies, services, entities, and other elements are 
            authorized to better use streamlined acquisition 
            procedures, research and development agreements, contracts, 
            and merit-based prize competitions to explore emerging 
            technologies, including modification of guidance and 
            procedures to permit effective and streamlined 
            implementation of authorities provided by Congress for 
            rapid execution;
                (vi) an account of the successes and failures of 
            contracts already awarded by the unit;
                (vii) recommendations on practices, policies, and 
            authorities that will permit increased public-private 
            partnership in financing and funding of research and 
            technology development efforts; and
                (viii) a description of technology transition 
            strategies to ensure that research and technology programs 
            funded by the Unit will be effectively and efficiently 
            transitioned into operational use or acquisition programs, 
            including a description of the role of Defense laboratories 
            in such technology transition efforts.
        (3) Any other information the Secretary determines to be 
    appropriate.
    (c) Funds Specified.--The funds specified in this subsection are as 
follows:
        (1) Funds authorized to be appropriated by this Act or 
    otherwise made available for fiscal year 2017 for operation and 
    maintenance, Defense-wide, for the Defense Innovation Unit 
    Experimental.
        (2) Funds authorized to be appropriated by this Act or 
    otherwise made available for fiscal year 2017 for research, 
    development, test, and evaluation, Defense-wide, for the Defense 
    Innovation Unit Experimental.
    SEC. 223. LIMITATION ON AVAILABILITY OF FUNDS FOR JOINT 
      SURVEILLANCE TARGET ATTACK RADAR SYSTEM (JSTARS) RECAPITALIZATION 
      PROGRAM.
    (a) In General.--Except as provided in subsection (b), none of the 
funds authorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017 or any other fiscal year for the Air 
Force may be made available for the Air Force's Joint Surveillance 
Target Attack Radar System (JSTARS) recapitalization program unless the 
contract for engineering and manufacturing development uses a firm 
fixed-price contract structure.
    (b) National Security Waiver Authority.--The Secretary of Defense 
may waive the limitation in subsection (a) if the Secretary determines 
that such a waiver is in the national security interests of the United 
States.
    SEC. 224. ACQUISITION PROGRAM BASELINE AND ANNUAL REPORTS ON 
      FOLLOW-ON MODERNIZATION PROGRAM FOR F-35 JOINT STRIKE FIGHTER.
    (a) Limitation.--The Secretary of Defense may not award any follow-
on modernization development contracts for the F-35 Joint Strike 
Fighter until the Secretary has submitted the report required by 
subsection (b)(1) in accordance with such subsection.
    (b) Acquisition Program Baseline.--
        (1) In general.--Not later than March 31, 2017, the Secretary 
    of Defense shall submit to the congressional defense committees a 
    report that contains the basic elements of an acquisition program 
    baseline for Block 4 Modernization.
        (2) Elements.--The report required by paragraph (1) shall 
    include the following:
            (A) Cost estimates for development, production, and 
        modification.
            (B) Projected key schedule dates, including dates for the 
        completion of--
                (i) a capabilities development document;
                (ii) an independent cost estimate;
                (iii) an initial preliminary design review;
                (iv) a development contract award; and
                (v) a critical design review.
            (C) Technical performance parameters.
            (D) Technology readiness levels.
            (E) Annual funding profiles for development and 
        procurement.
    (c) Review by Comptroller General of the United States.--Not later 
than 60 days after the date on which the report required by subsection 
(b)(1) is submitted to the congressional defense committees in 
accordance with such subsection, the Comptroller General of the United 
States shall--
        (1) review such report; and
        (2) brief the congressional defense committees on the findings 
    of the Comptroller General with respect to such review.
    (d) Annual Reports by Secretary of Defense.--Not later than one 
year after the date on which the Secretary awards a development 
contract for follow-on modernization of the F-35 Joint Strike Fighter 
and not less frequently than once each year thereafter until March 31, 
2023, the Secretary shall submit to the congressional defense 
committees a report on the cost, schedule, and performance progress 
against the baseline set forth in the report submitted pursuant to 
subsection (b)(1).

                 Subtitle C--Reports and Other Matters

    SEC. 231. STRATEGY FOR ASSURED ACCESS TO TRUSTED MICROELECTRONICS.
    (a) Strategy.--The Secretary of Defense shall develop a strategy to 
ensure that the Department of Defense has assured access to trusted 
microelectronics by not later than September 30, 2019.
    (b) Elements.--The strategy under subsection (a) shall include the 
following:
        (1) Definitions of the various levels of trust required by 
    classes of Department of Defense systems.
        (2) Means of classifying systems of the Department of Defense 
    based on the level of trust such systems are required to maintain 
    with respect to microelectronics.
        (3) Means by which trust in microelectronics can be assured.
        (4) Means to increase the supplier base for assured 
    microelectronics to ensure multiple supply pathways.
        (5) An assessment of the microelectronics needs of the 
    Department of Defense in future years, including the need for 
    trusted, radiation-hardened microelectronics.
        (6) An assessment of the microelectronic needs of the 
    Department of Defense that may not be fulfilled by entities outside 
    the Department of Defense.
        (7) The resources required to assure access to trusted 
    microelectronics, including infrastructure, workforce, and 
    investments in science and technology.
        (8) A research and development strategy to ensure that the 
    Department of Defense can, to the maximum extent practicable, use 
    state of the art commercial microelectronics capabilities or their 
    equivalent, while satisfying the needs for trust.
        (9) Recommendations for changes in authorities, regulations, 
    and practices, including acquisition policies, financial 
    management, public-private partnership policies, or in any other 
    relevant areas, that would support the achievement of the goals of 
    the strategy.
    (c) Submission and Updates.--(1) Not later than one year after the 
date of the enactment of this Act, the Secretary shall submit to the 
congressional defense committees the strategy developed under 
subsection (a). The strategy shall be submitted in unclassified form, 
but may include a classified annex.
    (2) Not later than two years after submitting the strategy under 
paragraph (1) and not less frequently than once every two years 
thereafter until September 30, 2024, the Secretary shall update the 
strategy as the Secretary considers appropriate to support Department 
of Defense missions.
    (d) Directive Required.--Not later than September 30, 2019, the 
Secretary of Defense shall issue a directive for the Department of 
Defense describing how Department of Defense entities may access 
assured and trusted microelectronics supply chains for Department of 
Defense systems.
    (e) Report and Certification.--Not later than September 30, 2020, 
the Secretary of the Defense shall submit to the congressional defense 
committees--
        (1) a report on--
            (A) the status of the implementation of the strategy 
        developed under subsection (a);
            (B) the actions being taken to achieve full implementation 
        of such strategy, and a timeline for such implementation; and
            (C) the status of the implementation of the directive 
        required by subsection (d); and
        (2) a certification of whether the Department of Defense has an 
    assured means for accessing a sufficient supply of trusted 
    microelectronics, as required by the strategy developed under 
    subsection (a).
    (f) Definitions.--In this section:
        (1) The term ``assured'' refers, with respect to 
    microelectronics, to the ability of the Department of Defense to 
    guarantee availability of microelectronics parts at the necessary 
    volumes and with the performance characteristics required to meet 
    the needs of the Department of Defense.
        (2) The terms ``trust'' and ``trusted'' refer, with respect to 
    microelectronics, to the ability of the Department of Defense to 
    have confidence that the microelectronics function as intended and 
    are free of exploitable vulnerabilities, either intentionally or 
    unintentionally designed or inserted as part of the system at any 
    time during its life cycle.
    SEC. 232. PILOT PROGRAM ON EVALUATION OF COMMERCIAL INFORMATION 
      TECHNOLOGY.
    (a) Pilot Program.--The Director of the Defense Information Systems 
Agency may carry out a pilot program to evaluate commercially available 
information technology tools to better understand the potential impact 
of such tools on networks and computing environments of the Department 
of Defense.
    (b) Activities.--Activities under the pilot program may include the 
following:
        (1) Prototyping, experimentation, operational demonstration, 
    military user assessments, and other means of obtaining 
    quantitative and qualitative feedback on the commercial information 
    technology products.
        (2) Engagement with the commercial information technology 
    industry to--
            (A) forecast military requirements and technology needs; 
        and
            (B) support the development of market strategies and 
        program requirements before finalizing acquisition decisions 
        and strategies.
        (3) Assessment of novel or innovative commercial technology for 
    use by the Department of Defense.
        (4) Assessment of novel or innovative contracting mechanisms to 
    speed delivery of capabilities to the Armed Forces.
        (5) Solicitation of operational user input to shape future 
    information technology requirements of the Department of Defense.
    (c) Limitation on Availability of Funds.--Of the amounts authorized 
to be appropriated for research, development, test, and evaluation, 
Defense-wide, for each of fiscal years 2017 through 2022, not more than 
$15,000,000 may be expended on the pilot program in any such fiscal 
year.
    SEC. 233. PILOT PROGRAM FOR THE ENHANCEMENT OF THE RESEARCH, 
      DEVELOPMENT, TEST, AND EVALUATION CENTERS OF THE DEPARTMENT OF 
      DEFENSE.
    (a) Pilot Program Required.--
        (1) In general.--The Secretary of Defense and the secretaries 
    of the military departments shall jointly carry out a pilot program 
    to demonstrate methods for the more effective development of 
    technology and management of functions at eligible centers.
        (2) Eligible centers.--For purposes of the pilot program, the 
    eligible centers are--
            (A) the science and technology reinvention laboratories, as 
        specified in section 1105(a) of the National Defense 
        Authorization Act for Fiscal Year 2010 (10 U.S.C. 2358 note);
            (B) the test and evaluation centers which are activities 
        specified as part of the Major Range and Test Facility Base in 
        Department of Defense Directive 3200.11; and
            (C) the Defense Advanced Research Projects Agency.
    (b) Selection.--
        (1) In general.--The secretaries described in subsection (a) 
    shall ensure that participation in the pilot program includes--
            (A) the Defense Advanced Research Projects Agency; and
            (B) in accordance with paragraph (2)--
                (i) five additional eligible centers described in 
            subparagraph (A) of subsection (a)(2) from each of the 
            military departments; and
                (ii) five additional eligible centers described in 
            subparagraph (B) of such subsection from each of the 
            military departments.
        (2) Selection procedures.--(A) The head of an eligible center 
    described in subparagraph (A) or (B) of subsection (a)(2) seeking 
    to participate in the pilot program shall submit to the appropriate 
    reviewer an application therefor at such time, in such manner, and 
    containing such information as the appropriate reviewer shall 
    specify.
        (B) Not later than 120 days after the date of the enactment of 
    this Act, each appropriate reviewer shall--
            (i) evaluate each application received under subparagraph 
        (A); and
            (ii) approve or disapprove of the application.
        (C) If the head of an eligible center submits an application 
    under subparagraph (A) in accordance with the requirements 
    specified by the appropriate reviewer for purposes of such 
    subparagraph and the appropriate reviewer neither approves nor 
    disapproves such application pursuant to subparagraph (B)(ii) on or 
    before the date that is 120 days after the date of the enactment of 
    this Act, such eligible center shall be considered a participant in 
    the pilot program.
        (D) For purposes of this paragraph, the appropriate reviewer 
    is--
            (i) in the case of an eligible center described in 
        subparagraph (A) of subsection (a)(2), the Laboratory Quality 
        Enhancement Program; and
            (ii) in the case of an eligible center described in 
        subparagraph (B) of such subsection, the Director of the Test 
        Resource Management Center.
    (c) Participation in Program.--
        (1) In general.--Subject to paragraph (2), the head of each 
    eligible center selected under subsection (b)(1) shall propose and 
    implement alternative and innovative methods of effective 
    management and operations of eligible centers, rapid project 
    delivery, support, experimentation, prototyping, and partnership 
    with universities and private sector entities to--
            (A) generate greater value and efficiencies in research and 
        development activities;
            (B) enable more efficient and effective operations of 
        supporting activities, such as--
                (i) facility management, construction, and repair;
                (ii) business operations;
                (iii) personnel management policies and practices; and
                (iv) intramural and public outreach; and
            (C) enable more rapid deployment of warfighter 
        capabilities.
        (2) Implementation.--(A) The head of an eligible center 
    described in subparagraph (A) or (B) of subsection (a)(2) shall 
    implement each method proposed under paragraph (1) unless such 
    method is disapproved in writing by the Assistant Secretary 
    concerned within 60 days of receiving a proposal from an eligible 
    center selected under subsection (b)(1) by such Assistant 
    Secretary.
        (B) The Director of the Defense Advanced Research Projects 
    Agency shall implement each method proposed under paragraph (1) 
    unless such method is disapproved in writing by the Chief 
    Management Officer within 60 days of receiving a proposal from the 
    Director.
        (C) In this paragraph, the term ``Assistant Secretary 
    concerned'' means--
            (i) the Assistant Secretary of the Air Force for 
        Acquisition, with respect to matters concerning the Air Force;
            (ii) the Assistant Secretary of the Army for Acquisition, 
        Technology, and Logistics, with respect to matters concerning 
        the Army; and
            (iii) the Assistant Secretary of the Navy for Research, 
        Development, and Acquisition, with respect to matters 
        concerning the Navy.
    (d) Waiver Authority for Demonstration and Implementation.--Until 
the termination of the pilot program under subsection (e), the head of 
an eligible center selected under subsection (b)(1) may waive any 
regulation, restriction, requirement, guidance, policy, procedure, or 
departmental instruction that would affect the implementation of a 
method proposed under subsection (c)(1), unless such implementation 
would be prohibited by a provision of a Federal statute or common law.
    (e) Termination.--The pilot program shall terminate on September 
30, 2022.
    (f) Report.--
        (1) In general.--Not later than one year after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    congressional defense committees a report on the pilot program.
        (2) Contents.--The report required by paragraph (1) shall 
    include the following:
            (A) Identification of the eligible centers participating in 
        the pilot program.
            (B) Identification of the eligible centers whose 
        applications to participate in the pilot program were 
        disapproved under subsection (b), including justifications for 
        such disapprovals.
            (C) A description of the methods implemented pursuant to 
        subsection (c).
            (D) A description of the methods that were proposed 
        pursuant to paragraph (1) of subsection (c) but disapproved 
        under paragraph (2) of such subsection.
            (E) An assessment of how methods implemented pursuant to 
        subsection (c) have contributed to the objectives identified in 
        subparagraphs (A), (B), and (C) of paragraph (1) of such 
        subsection.
    SEC. 234. PILOT PROGRAM ON MODERNIZATION AND FIELDING OF 
      ELECTROMAGNETIC SPECTRUM WARFARE SYSTEMS AND ELECTRONIC WARFARE 
      CAPABILITIES.
    (a) Pilot Program.--
        (1) In general.--The Secretary of Defense may carry out a pilot 
    program on the modernization and fielding of electromagnetic 
    spectrum warfare systems and electronic warfare systems.
        (2) Selection.--If the Secretary carries out the pilot program 
    under paragraph (1), the Electronic Warfare Executive Committee 
    shall select from the list described in section 240(b)(4) a total 
    of 10 electromagnetic spectrum warfare systems and electronic 
    warfare systems across at least two military departments for 
    modernization and fielding under the pilot program.
    (b) Termination.--The pilot program authorized by subsection (a) 
shall terminate on September 30, 2023.
    (c) Funding.--For the purposes of this pilot program, funds 
authorized to be appropriated for electromagnetic spectrum warfare and 
electronic warfare may be used for the development and fielding of 
electromagnetic spectrum warfare systems and electronic warfare 
capabilities.
    (d) Definitions.--In this section:
        (1) The term ``electromagnetic spectrum warfare'' means 
    electronic warfare that encompasses military communications and 
    sensing operations that occur in the electromagnetic operational 
    domain.
        (2) The term ``electronic warfare'' means military action 
    involving the use of electromagnetic and directed energy to control 
    the electromagnetic spectrum or to attack the enemy.
    SEC. 235. PILOT PROGRAM ON DISCLOSURE OF CERTAIN SENSITIVE 
      INFORMATION TO FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.
    (a) In General.--The Secretary of Defense shall carry out a pilot 
program on--
        (1) permitting officers and employees of the Department of 
    Defense to disclose sensitive information to federally funded 
    research and development centers of the Department for the sole 
    purpose of the performance of administrative, technical, or 
    professional services under and within the scope of the contracts 
    with the parent organizations of such federally funded research and 
    development centers; and
        (2) appropriately protecting proprietary information from 
    unauthorized disclosure or use by such centers.
    (b) FFRDCs.--The pilot program shall be carried out with one or 
more federally funded research and development centers of the 
Department selected by the Secretary for participation in the pilot 
program.
    (c) FFRDC Personnel.--Sensitive information may be disclosed to 
personnel of a federally funded research and development center under 
the pilot program only if such personnel and contractors agree to be 
subject to, and comply with, appropriate ethics standards and 
requirements applicable to Government personnel, including the Ethics 
in Government Act of 1978, section 1905 of title 18, United States 
Code, and chapter 21 of title 41, United States Code.
    (d) Conditions on Disclosure.--Sensitive information may be 
disclosed under the pilot program only if the federally funded research 
and development center concerned and its parent organization agree to 
and acknowledge in the parent organization's contract with the 
Department of Defense that--
        (1) sensitive information furnished to the federally funded 
    research and development center will be accessed and used only for 
    the purposes stated in the contract between the parent organization 
    of the federally funded research and development center and the 
    Department of Defense;
        (2) the federally funded research and development center will 
    take all precautions necessary to prevent disclosure of the 
    sensitive information furnished to anyone not authorized access to 
    the information in order to perform the applicable contract;
        (3) sensitive information furnished under the pilot program 
    shall not be used by the federally funded research and development 
    center or parent organization to compete against a third party for 
    a Government or non-Government contract or funding, or to support 
    other current or future research or technology development 
    activities performed by the federally funded research and 
    development center; and
        (4) any personnel of a federally funded research and 
    development center participating in the pilot program may not 
    disclose or use any trade secrets or any nonpublic information 
    accessed under the pilot program, unless specifically authorized by 
    this section.
    (e) Duration.--(1) The pilot program may commence at any time after 
the review and issuance of policy guidance, updated appropriately, 
pertaining to the identification, mitigation, and prevention of 
potentially unfair competitive advantage conferred to federally funded 
research and development center personnel with access to sensitive 
information who serve as technical advisors to acquisition programs.
    (2) The pilot program shall terminate on the date that is three 
years after the date of the commencement of the pilot program.
    (f) Assessment.--Not later than two years after the commencement of 
the pilot program, the Comptroller General of the United States shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the pilot program, including an 
assessment of the effectiveness of activities under the pilot program 
in improving acquisition processes and the effectiveness of protections 
of private-sector intellectual property in the course of such 
activities.
    (g) Sensitive Information Defined.--In this section, the term 
``sensitive information'' means confidential commercial, financial, or 
proprietary information, technical data, contract performance, contract 
performance evaluation, management, and administration data, or other 
privileged information owned by other contractors of the Department of 
Defense that is exempt from public disclosure under section 552(b)(4) 
of title 5, United States Code, or which would otherwise be prohibited 
from disclosure under section 1832 or 1905 of title 18, United States 
Code.
    SEC. 236. PILOT PROGRAM ON ENHANCED INTERACTION BETWEEN THE DEFENSE 
      ADVANCED RESEARCH PROJECTS AGENCY AND THE SERVICE ACADEMIES.
    (a) In General.--The Secretary of Defense, acting through the 
Director of the Defense Advanced Research Projects Agency, shall carry 
out a pilot program to enhance interaction between the Defense Advanced 
Research Projects Agency and the service academies to promote 
technology transition, education, and training in science, technology, 
engineering, and mathematics fields that are relevant to the Department 
of Defense.
    (b) Awards of Funds.--(1) In carrying out the pilot program, the 
Secretary, acting through the Director, shall provide funds to 
contractors and grantees of the Defense Advanced Research Projects 
Agency in order to encourage such contractors and grantees to develop 
research partnerships with the service academies to support more 
efficient and effective technology transition of research programs and 
products.
    (2) It shall be the responsibility of the Director to ensure that 
such funds are used effectively and that sufficient efforts are made to 
build appropriate partnerships.
    (c) Service Academy Technology Transition Networks.--In carrying 
out the pilot program, the Director shall prioritize the leveraging 
of--
        (1) the technology transition networks that service academies 
    maintain among their academic departments and resident research 
    centers; and
        (2) partnerships with Department of Defense laboratories, other 
    Federal degree granting institutions, academia, and industry.
    (d) Termination.--The authority to carry out the pilot program 
shall terminate on September 30, 2020.
    (e) Service Academies Defined.--In this section, the term ``service 
academies'' means the following:
        (1) The United States Military Academy.
        (2) The United States Naval Academy.
        (3) Th United States Air Force Academy.
        (4) The United States Coast Guard Academy.
        (5) The United States Merchant Marine Academy.
    SEC. 237. INDEPENDENT REVIEW OF F/A-18 PHYSIOLOGICAL EPISODES AND 
      CORRECTIVE ACTIONS.
    (a) Independent Review Required.--The Secretary of the Navy shall 
conduct an independent review of the plans, programs, and research of 
the Department of the Navy with respect to--
        (1) physiological events affecting aircrew of the F/A-18 Hornet 
    and the F/A-18 Super Hornet aircraft during the covered period; and
        (2) the efforts of the Navy and Marine Corps to prevent and 
    mitigate the affects of such physiological events.
    (b) Conduct of Review.--In conducting the review under subsection 
(a), the Secretary of the Navy shall--
        (1) designate an appropriate senior official in the Office of 
    the Secretary of the Navy to oversee the review; and
        (2) consult experts from outside the Department of Defense in 
    appropriate technical and medical fields.
    (c) Review Elements.--The review under subsection (a) shall include 
an evaluation of--
        (1) any data of the Department of the Navy relating to the 
    increased frequency of physiological events affecting aircrew of 
    the F/A-18 Hornet and the F/A-18 Super Hornet aircraft during the 
    covered period;
        (2) aircraft mishaps potentially related to such physiological 
    events;
        (3) the cost and effectiveness of all material, operational, 
    maintenance, and other measures carried out by the Department of 
    the Navy to mitigate such physiological events during the covered 
    period;
        (4) material, operational, maintenance, or other measures that 
    may reduce the rate of such physiological events in the future; and
        (5) the performance of--
            (A) the onboard oxygen generation system in the F/A-18 
        Super Hornet;
            (B) the overall environmental control system in the F/A-18 
        Hornet and F/A-18 Super Hornet; and
            (C) other relevant subsystems of the F/A-18 Hornet and F/A-
        18 Super Hornet, as determined by the Secretary.
    (d) Report Required.--Not later than December 1, 2017, the 
Secretary of Navy shall submit to the congressional defense committees 
a report that includes the results of the review under subsection (a).
    (e) Covered Period.--In this section, the term ``covered period'' 
means the period beginning on January 1, 2009, and ending on the date 
of the submission of the report under subsection (d).
    SEC. 238. B-21 BOMBER DEVELOPMENT PROGRAM ACCOUNTABILITY MATRICES.
    (a) Submittal of Matrices.--Concurrent with the President's annual 
budget request submitted to Congress under section 1105 of title 31, 
United States Code, for fiscal year 2018, the Secretary of the Air 
Forces shall submit to the congressional defense committees and the 
Comptroller General of the United States the matrices described in 
subsection (b) relating to the B-21 bomber aircraft program.
    (b) Matrices Described.--The matrices described in this subsection 
are the following:
        (1) EMD goals.--A matrix that identifies, in six month 
    increments, key milestones, development events, and specific 
    performance goals for the EMD phase of the B-21 bomber aircraft 
    program, which shall be subdivided, at a minimum, according to the 
    following:
            (A) Technology readiness levels of major components and key 
        demonstration events.
            (B) Design maturity.
            (C) Software maturity.
            (D) Manufacturing readiness levels for critical 
        manufacturing operations and key demonstration events.
            (E) Manufacturing operations.
            (F) System verification and key flight test events.
            (G) Reliability.
        (2) Cost.--A matrix expressing, in six month increments, the 
    total cost for the Air Force service cost position for the EMD 
    phase and low initial rate of production lots of the B-21 bomber 
    aircraft and a matrix expressing the total cost for the prime 
    contractor's estimate for such EMD phase and production lots, both 
    of which shall be phased over the entire EMD period and subdivided 
    according to the costs of the following:
            (A) Air vehicle.
            (B) Propulsion.
            (C) Mission systems.
            (D) Vehicle subsystems.
            (E) Air vehicle software.
            (F) Systems engineering.
            (G) Program management.
            (H) System test and evaluation.
            (I) Support and training systems.
            (J) Contract fee.
            (K) Engineering changes.
            (L) Direct mission support, including Congressional General 
        Reductions.
            (M) Government testing.
    (c) Semiannual Update of Matrices.--
        (1) In general.--Not later than 180 days after the date on 
    which the Secretary of the Air Force submits the matrices required 
    by subsection (a), concurrent with the submittal of each annual 
    budget request to Congress under section 1105 of title 31, United 
    States Code, thereafter, and not later than 180 days after each 
    such submittal, the Secretary of the Air Force shall submit to the 
    congressional defense committees and the Comptroller General of the 
    United States updates to the matrices described in subsection (b).
        (2) Elements.--Each update submitted under paragraph (1) shall 
    detail progress made toward the goals identified in the matrix 
    described in subsection (b)(1) and provide updated cost estimates.
        (3) Treatment of initial matrices as baseline.--The matrices 
    submitted pursuant to subsection (a) shall be treated as the 
    baseline for the full EMD phase and low rate initial production of 
    the B-21 bomber aircraft program for purposes of the updates 
    submitted pursuant to paragraph (1) of this subsection.
    (d) Assessment by Comptroller General of the United States.--Not 
later than the date that is 45 days after the date on which the 
Comptroller General of the United States receives an update to a matrix 
under subsection (d)(1), the Comptroller General shall review the 
sufficiency of such matrix and submit to the congressional defense 
committees an assessment of such matrix, including by identifying cost, 
schedule, or performance trends.
    SEC. 239. STUDY ON HELICOPTER CRASH PREVENTION AND MITIGATION 
      TECHNOLOGY.
    (a) Study Required.--The Secretary of Defense shall seek to enter 
into a contract with a federally funded research and development center 
to conduct a study on technologies with the potential to prevent and 
mitigate helicopter crashes.
    (b) Elements.--The study required under subsection (a) shall 
include the following:
        (1) Identification of technologies with the potential--
            (A) to prevent helicopter crashes (such as collision 
        avoidance technologies and battle space and terrain situational 
        awareness technologies); and
            (B) to improve survivability among individuals involved in 
        such crashes (such as adaptive flight control technologies and 
        improved energy absorbing technologies).
        (2) A cost-benefit analysis of each technology identified under 
    paragraph (1) that takes into account the cost of developing and 
    deploying the technology compared to the potential of the 
    technology to prevent casualties or injuries.
        (3) A list that ranks the technologies identified under 
    paragraph (1) based on--
            (A) the results of the cost-benefit analysis under 
        paragraph (2); and
            (B) the readiness level of each technology.
        (4) An analysis of helicopter crashes that--
            (A) compares the casualty rates of cockpit occupants to the 
        casualty rates of occupants of cargo compartments and troop 
        seats; and
            (B) identifies the root causes of the casualties described 
        in subparagraph (A).
    (c) Briefing.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall provide to the Committees on 
Armed Services of the Senate and the House of Representatives (and the 
other congressional defense committees on request) a briefing that 
includes--
        (1) the results of the study required under subsection (a); and
        (2) the list described in subsection (b)(3).
    SEC. 240. STRATEGY FOR IMPROVING ELECTRONIC AND ELECTROMAGNETIC 
      SPECTRUM WARFARE CAPABILITIES.
    (a) Strategy Required.--Not later than April 1, 2017, the Under 
Secretary of Defense for Acquisition, Technology and Logistics, acting 
through the Electronic Warfare Executive Committee, shall submit to the 
congressional defense committees a strategy on the electronic and 
electromagnetic spectrum warfare capabilities of the Department of 
Defense.
    (b) Elements.--The strategy required by subsection (a) shall 
include the following:
        (1) A strategy for advancing and accelerating research, 
    development, test, and evaluation, and fielding, of electronic 
    warfare capabilities to meet current and projected requirements, 
    including intra-service ground and air interoperabilities, as well 
    as recommendations for streamlining acquisition processes with 
    respect to such capabilities.
        (2) A methodology for synchronizing and overseeing electronic 
    warfare strategies, operational concepts, and programs across the 
    Department of Defense, including electronic warfare programs that 
    support or enable cyber operations.
        (3) A description of the training and operational support 
    required for fielding and sustaining current and planned 
    investments in electronic warfare capabilities, including the 
    requirements for conducting large-scale simulated exercises and 
    training in contested electronic warfare environments.
        (4) A comprehensive list of investments of the Department of 
    Defense in electronic warfare capabilities, including the 
    capabilities to be developed, procured, or sustained in--
            (A) the budget of the President for fiscal year 2018 
        submitted to Congress under section 1105(a) of title 31, United 
        States Code; and
            (B) the future-years defense program submitted to Congress 
        under section 221 of title 10, United States Code, for that 
        fiscal year.
        (5) A description of the threat environment for electromagnetic 
    spectrum for current and future warfare needs.
        (6) An assessment of progress on increasing interoperability 
    between Services and Agencies, as well as increasing application of 
    innovative electromagnetic spectrum warfighting methods and 
    operational concepts that provide advantages within the 
    electromagnetic spectrum operational domain.
        (7) Specific attributes needed in future electronic and 
    electromagnetic spectrum warfare capabilities, such as networking, 
    adaptability, agility, multifunctionality, and miniaturization, and 
    progress toward incorporating such attributes in new electronic 
    warfare systems.
        (8) Capability gaps with respect to asymmetric and near-peer 
    adversaries identified pursuant to a capability gap assessment.
        (9) A joint strategy on achieving near real-time system 
    adaption to rapidly advancing modern digital electronics.
        (10) Any other information the Secretary determines to be 
    appropriate.
    (c) Form.--The strategy required by subsection (a) shall be 
submitted in unclassified form, but may include a classified annex.
    (d) Electronic Warfare Executive Committee Defined.--In this 
section the term ``Electronic Warfare Executive Committee'' means the 
committee established on March 17, 2015, and chartered on August 11, 
2015, by the Deputy Secretary of Defense to serve as the principal 
forum within the Department of Defense to inform, coordinate, and 
evaluate electronic warfare matters to maintain a strong technological 
advantage in United States capabilities.
    SEC. 241. SENSE OF CONGRESS ON DEVELOPMENT AND FIELDING OF FIFTH 
      GENERATION AIRBORNE SYSTEMS.
    (a) Findings.--Congress makes the following findings:
        (1) The term ``fifth generation'', with respect to airborne 
    systems, means those airborne systems capable of operating 
    effectively in highly contested battle spaces defined by the most 
    capable currently fielded threats, and those reasonably expected to 
    be operational in the foreseeable future.
        (2) Continued modernization of Department of Defense airborne 
    systems such as fighters, bombers, and intelligence, surveillance, 
    and reconnaissance (ISR) aircraft with fifth generation 
    capabilities is required because--
            (A) adversary integrated air defense systems (IADS) have 
        created regions where fourth generation airborne systems may be 
        limited in their ability to effectively operate;
            (B) adversary aircraft, air-to-air missiles, and airborne 
        electronic attack or electronic protection systems are 
        advancing beyond the capabilities of fourth generation airborne 
        systems; and
            (C) fifth generation airborne systems provide a wider 
        variety of options for a given warfighting challenge, preserve 
        the technological advantage of the United States over near-peer 
        threats, and serve as a force multiplier by increasing 
        situational awareness and combat effectiveness of fourth 
        generation airborne systems.
    (b) Sense of Congress.--It is the sense of Congress that 
development and fielding of fifth generation airborne system systems 
should include the following:
        (1) Multispectral (radar, infrared, visual, emissions) low 
    observable (LO) design features, self-protection jamming, and other 
    capabilities that significantly delay or deny threat system 
    detection, tracking, and engagement.
        (2) Integrated avionics that autonomously fuse and prioritize 
    onboard multispectral sensors and offboard information data to 
    provide an accurate realtime operating picture and data download 
    for postmission exploitation and analysis.
        (3) Resilient communications, navigation, and identification 
    techniques designed to effectively counter adversary attempts to 
    deny or confuse friendly systems.
        (4) Robust and secure networks linking individual platforms to 
    create a common, accurate, and highly integrated picture of the 
    battle space for friendly forces.
        (5) Advanced onboard diagnostics capable of monitoring system 
    health, accurately reporting system faults, and increasing overall 
    system performance and reliability.
        (6) Integrated platform and subsystem designs to maximize 
    lethality and survivability while enabling decision superiority.
        (7) Maximum consideration for the fielding of unmanned 
    platforms either employed in concert with fifth generation manned 
    platforms or as standalone unmanned platforms, to increase 
    warfighting effectiveness and reduce risk to personnel during high 
    risk missions.
        (8) Advanced air-to-air, air-to-ground, and other weapons able 
    to leverage fifth generation capabilities.
        (9) Comprehensive and high-fidelity live, virtual, and 
    constructive training systems, updated range infrastructure, and 
    sufficient threat-representative adversary training assets to 
    maximize fifth generation force proficiency, effectiveness, and 
    readiness while protecting sensitive capabilities.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Authorization of appropriations.

                   Subtitle B--Energy and Environment

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

                  Subtitle C--Logistics and Sustainment

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

                           Subtitle D--Reports

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

                        Subtitle E--Other Matters

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

              Subtitle A--Authorization of Appropriations

    SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
    Funds are hereby authorized to be appropriated for fiscal year 2017 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, as specified in the funding table in section 
4301.

                   Subtitle B--Energy and Environment

    SEC. 311. MODIFIED REPORTING REQUIREMENT RELATED TO INSTALLATIONS 
      ENERGY MANAGEMENT.
    Subsection (a) of section 2925 of title 10, United States Code, is 
amended--
        (1) in the subsection heading, by inserting ``, Resiliency, and 
    Mission Assurance'' after ``Annual Report Related to Installations 
    Energy Management'';
        (2) by striking paragraphs (2), (3), (4), (5), (6), (7), (8), 
    and (10);
        (3) by redesignating paragraphs (9) and (11) as paragraphs (3), 
    and (4), respectively; and
        (4) by inserting after paragraph (1), the following:
        ``(2) A description of the energy savings, return on 
    investment, and enhancements to installation mission assurance 
    realized by the fulfillment of the goals described in paragraph 
    (1).''.
    SEC. 312. WAIVER AUTHORITY FOR ALTERNATIVE FUEL PROCUREMENT 
      REQUIREMENT.
    (a) In General.--The Secretary of Defense may waive the requirement 
under section 526 of the Energy Independence and Security Act of 2007 
(Public Law 110-140; 42 U.S.C. 17142) if the Secretary determines it is 
in the national security interest of the United States.
    (b) Notification Requirement.--The Secretary of Defense shall 
notify the congressional defense committees not later than 15 days 
after exercising the waiver authority under subsection (a).
    SEC. 313. UTILITY DATA MANAGEMENT FOR MILITARY FACILITIES.
    (a) Pilot Program.--The Secretary of Defense, in consultation with 
the Secretary of Energy, may carry out a pilot program to investigate 
the use of utility data management services to perform utility bill 
aggregation, analysis, third-party payment, storage, and distribution 
for the Department of Defense.
    (b) Use of Funds.--Of the funds authorized to be appropriated by 
this Act or otherwise made available for fiscal year 2017 for operation 
and maintenance, Navy, for enterprise information, not more than 
$250,000 may be obligated or expended to carry out the pilot program 
under subsection (a).
    SEC. 314. ALTERNATIVE TECHNOLOGIES FOR MUNITIONS DISPOSAL.
    In carrying out the disposal of munitions in the stockpile of 
conventional munitions awaiting demilitarization and disposal, the 
Secretary of the Army may use cost-competitive technologies that 
minimize waste generation and air emissions as alternatives to disposal 
by open burning, open detonation, direct contact combustion, and 
incineration.
    SEC. 315. REPORT ON EFFORTS TO REDUCE HIGH ENERGY COSTS AT MILITARY 
      INSTALLATIONS.
    (a) Report.--
        (1) Report required.--Not later than 270 days after the date of 
    the enactment of this Act, the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics, in conjunction with the 
    assistant secretaries responsible for installations and environment 
    for the military services and the Defense Logistics Agency, shall 
    submit to the congressional defense committees a report detailing 
    the efforts to achieve cost savings at military installations with 
    high levels of energy intensity.
        (2) Elements.--The report required under paragraph (1) shall 
    include the following elements:
            (A) A comprehensive, installation-specific assessment of 
        feasible and mission-appropriate energy initiatives supporting 
        energy production and consumption at military installations 
        with high levels of energy intensity.
            (B) An assessment of current sources of energy in areas 
        with high energy costs and potential future sources that are 
        technologically feasible, cost-effective, and mission-
        appropriate for military installations.
            (C) A comprehensive implementation strategy to include 
        required investment for feasible energy efficiency options 
        determined to be the most beneficial and cost-effective, where 
        appropriate, and consistent with Department of Defense 
        priorities.
            (D) An explanation of how military services are working 
        collaboratively in order to leverage lessons learned on 
        potential energy efficiency solutions.
            (E) An assessment of the extent to which activities 
        administered under the Federal Energy Management Program could 
        be used to assist with the implementation strategy.
            (F) An assessment of State and local partnership 
        opportunities that could achieve efficiency and cost savings, 
        and any legislative authorities required to carry out such 
        partnerships or agreements.
        (3) Coordination with state and local and other entities.--In 
    preparing the report required under paragraph (1), the Under 
    Secretary may work in conjunction and coordinate with the States 
    containing areas of high levels of energy intensity, local 
    communities, and other Federal departments and agencies.
    (b) Definitions.--In this section, the term ``high levels of energy 
intensity'' means costs for the provision of energy by kilowatt of 
electricity or British thermal unit of heat or steam for a military 
installation in the United States that is in the highest 20 percent of 
all military installations for a military department.
    SEC. 316. SENSE OF CONGRESS ON FUNDING DECISIONS RELATING TO 
      CLIMATE CHANGE.
    It is the sense of Congress that--
        (1) decisions relating to the funding of the Department of 
    Defense for fiscal year 2017 should prioritize the support and 
    enhancement of the combat capabilities of the Department, in 
    addition to seeking efficiency and efficacy;
        (2) funds should be allocated among the programs of the 
    Department in the manner that best serves the national security 
    interests of the United States; and
        (3) decisions relating to energy efficiency, energy use, and 
    climate change should adhere to the principles described in 
    paragraphs (1) and (2).

                 Subtitle C--Logistics and Sustainment

    SEC. 321. REVISION OF DEPLOYABILITY RATING SYSTEM AND PLANNING 
      REFORM.
    (a) Deployment Prioritization and Readiness.--
        (1) In general.--Chapter 1003 of title 10, United States Code, 
    is amended by inserting after section 10102 the following new 
    section:
``Sec. 10102a. Deployment prioritization and readiness of Army 
      components
    ``(a) Deployment Prioritization.--The Secretary of the Army shall 
maintain a system for identifying the priority of deployment for units 
of all components of the Army.
    ``(b) Deployability Readiness Rating.--The Secretary of the Army 
shall maintain a readiness rating system for units of all components of 
the Army that provides an accurate assessment of the deployability of a 
unit and those shortfalls of a unit that require the provision of 
additional resources. The system shall ensure--
        ``(1) that the personnel readiness rating of a unit reflects--
            ``(A) both the percentage of the overall personnel 
        requirement of the unit that is manned and deployable and the 
        fill and deployability rate for critical occupational 
        specialties necessary for the unit to carry out its basic 
        mission requirements; and
            ``(B) the number of personnel in the unit who are qualified 
        in their primary military occupational specialty; and
        ``(2) that the equipment readiness assessment of a unit--
            ``(A) documents all equipment required for deployment;
            ``(B) reflects only that equipment that is directly 
        possessed by the unit;
            ``(C) specifies the effect of substitute items; and
            ``(D) assesses the effect of missing components and sets on 
        the readiness of major equipment items.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 1003 of such title is amended by inserting after the 
    item relating to section 10102 the following new item:

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

    (b) Repeal of Superseded Provisions of Law.--Sections 1121 and 1135 
of the Army National Guard Combat Readiness Reform Act of 1992 (title 
XI of Public Law 102-484; 10 U.S.C. 10105 note) are repealed.
    SEC. 322. REVISION OF GUIDANCE RELATING TO CORROSION CONTROL AND 
      PREVENTION EXECUTIVES.
    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, in coordination with the Director of 
Corrosion Policy and Oversight for the Department of Defense, shall 
revise guidance relating to corrosion control and prevention executives 
to--
        (1) clarify the role of each such executive with respect to 
    assisting the Office of Corrosion Policy and Oversight in holding 
    the appropriate project management office in each military 
    department accountable for submitting the annual report required 
    under section 903(b)(5) of the Duncan Hunter National Defense 
    Authorization Act for Fiscal Year 2009 (Public Law 110-417; 10 
    U.S.C. 2228 note); and
        (2) ensure that corrosion control and prevention executives 
    emphasize the reduction of corrosion and the effects of corrosion 
    on the military equipment and infrastructure of the Department of 
    Defense, as required in the long-term strategy of the Department of 
    Defense under section 2228(d) of title 10, United States Code.
    (b) Corrosion Control and Prevention Executive Defined.--In this 
section, the term ``corrosion control and prevention executive'' means 
the employee of a military department designated as the corrosion 
control and prevention executive of the department under section 903(a) 
of the Duncan Hunter National Defense Authorization Act for Fiscal Year 
2009 (Public Law 110-417; 10 U.S.C. 2228 note).
    SEC. 323. PILOT PROGRAM FOR INCLUSION OF CERTAIN INDUSTRIAL PLANTS 
      IN THE ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.
    During the five-year period beginning on the date of the enactment 
of this Act, the Secretary of Defense may treat a Government-owned, 
contractor-operated industrial plant of the Department of Defense as an 
eligible facility under section 4551(2) of title 10, United States 
Code.
    SEC. 324. REPAIR, RECAPITALIZATION, AND CERTIFICATION OF DRY DOCKS 
      AT NAVAL SHIPYARDS.
    (a) Special Authority to Transfer Authorizations.--In addition to 
the authority to transfer funds provided under section 1001, the 
Secretary of Defense may transfer not more than $250,000,000 of 
authorizations made available to the Department of Defense in this Act 
for fiscal year 2017 to the Department of the Navy for the repair, 
recapitalization, and certification of dry docks at Government-owned, 
Government-operated shipyards of the Navy.
    (b) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).
    (c) Terms and Conditions.--
        (1) In general.--Except as provided in paragraph (2), transfers 
    under this section shall be subject to the same terms and 
    conditions as transfers under section 1001.
        (2) Effect on dollar limit.--A transfer of funds under this 
    section shall not be counted toward the dollar limitation described 
    in section 1001(a)(2).
    SEC. 325. PRIVATE SECTOR PORT LOADING ASSESSMENT.
    (a) Assessments Required.--During the period beginning on the date 
of the enactment of this Act and ending on the date of the final 
briefing under subsection (c), the Secretary of the Navy shall conduct 
quarterly assessments of naval ship maintenance and loading activities 
carried out by private sector entities at each covered port.
    (b) Elements of Assessments.--Each assessment under subsection (a) 
shall include, with respect to each covered port, the following:
        (1) Resources per day, including daily ship availabilities and 
    the workforce available to carry out maintenance and loading 
    activities, for the fiscal year preceding the quarter covered by 
    the assessment through the end of such quarter.
        (2) Projected resources per day, including daily ship 
    availabilities and the workforce available to carry out maintenance 
    and loading activities, through the end of the second fiscal year 
    beginning after the quarter covered by the assessment.
        (3) A description of the methods by which the Secretary 
    communicates projected workloads to private sector entities engaged 
    in ship maintenance activities and ship loading activities.
        (4) A description of any processes that have been implemented 
    to allow for timely feedback from private sector entities engaged 
    in ship maintenance activities and ship loading activities.
    (c) Briefings Required.--Not later than 30 days after the date of 
the enactment of this Act, and on a quarterly basis thereafter until 
September 30, 2021, the Secretary shall provide to the Committees on 
Armed Services of the Senate and House of Representatives (and other 
congressional defense committees on request)--
        (1) a briefing on the results of the assessments conducted 
    under subsection (a); and
        (2) a chart depicting the information described in paragraphs 
    (1) and (2) of subsection (b) with respect to each covered port.
    (d) Covered Ports.--In this section, the term ``covered ports'' 
means port facilities used by the Department of Defense in each of the 
following locations:
        (1) Mayport, Florida.
        (2) Norfolk, Virginia.
        (3) Pearl Harbor, Hawaii.
        (4) Puget Sound, Washington.
        (5) San Diego, California.
    SEC. 326. STRATEGY ON REVITALIZING ARMY ORGANIC INDUSTRIAL BASE.
    (a) Strategy.--Not later than October 1, 2017, the Secretary of 
Army shall submit to the congressional defense committees a strategy to 
revitalize the organic industrial base of the Army.
    (b) Elements.--The strategy under subsection (a) shall include, 
with respect to the organic industrial base of the Army, the following:
        (1) A plan to ensure the long-term viability of the organic 
    industrial base.
        (2) An assessment of legacy items of the Army that are 
    sustained by the Defense Logistics Agency.
        (3) A description of how the organic industrial base may be 
    used to address diminishing manufacturing sources and material 
    shortages.
        (4) A description of critical capabilities that are required 
    across the organic industrial base.
        (5) An assessment of infrastructure across the organic 
    industrial base.
        (6) An assessment of manufacturing sources in the organic 
    industrial base and the private sector.
        (7) An explanation of how contracting may be used to meet 
    organic industrial base requirements.
        (8) An assessment of current and future workloads across the 
    organic industrial base.
        (9) An assessment of the processes used to identify critical 
    capabilities for the organic industrial base and the methods used 
    to determine workloads.
        (10) An assessment of existing labor rates.
        (11) A description of manufacturing skills that are needed to 
    sustain readiness.
        (12) A description of how public-private partnerships may be 
    used to improve the organic industrial base.
        (13) A description of how working capital funds may be used to 
    improve the organic industrial base.
        (14) An assessment of operating expenses and the potential for 
    reducing or recovering such expenses.
        (15) Identification of the tooling, equipment, and facilities 
    upgrades necessary for a facility in the organic industrial base to 
    manufacture the legacy items of the Defense Logistics Agency, 
    including items described in section 333(a) of the National Defense 
    Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 
    Stat. 792).
        (16) An assessment of the suitability of manufacturing the 
    legacy items of the Defense Logistics Agency in a facility in the 
    organic industrial base.
    (c) Definitions.--In this section:
        (1) Legacy items.--The term ``legacy items'' means manufactured 
    items that are no longer produced by the private sector but 
    continue to be used for weapons systems of the Department of 
    Defense, but does not include information systems and information 
    technology (as those terms are defined in section 11101 of title 
    40, United States Code).
        (2) Organic industrial base.--The term ``organic industrial 
    base'' means United States military facilities, including arsenals, 
    depots, munition plants and centers, and storage sites, that 
    advance a vital national security interest by producing, 
    maintaining, repairing, and storing materiel, munitions, and 
    hardware.

                          Subtitle D--Reports

    SEC. 331. MODIFICATIONS TO QUARTERLY READINESS REPORT TO CONGRESS.
    (a) Deadline for Report.--Subsection (a) of section 482 of title 
10, United States Code, is amended by striking ``Not later than 45 days 
after the end of each calendar-year quarter'' and inserting ``Not later 
than 30 days after the end of each calendar-year quarter''.
    (b) Elimination of Reporting Requirements Related to Prepositioned 
Stocks and National Guard Civil Support Mission Readiness.--Such 
section is further amended--
        (1) in subsection (a), by striking ``subsections (b), (d), (e), 
    (f), (g), (h), and (i)'' and inserting ``subsections (b), (d), (e), 
    (f), and (g)'';
        (2) by striking subsections (d) and (e); and
        (3) by redesignating subsections (f), (g), (h), (i), and (j) as 
    subsections (d), (e), (f), (g), and (i) respectively.
    (c) Inclusion of Information on Cannibalization Rates.--Such 
section, as amended by subsection (b), is further amended by inserting 
after subsection (g), as redesignated by paragraph (3) of such 
subsection (b), the following new subsection:
    ``(h) Cannibalization Rates.--Each report under this section shall 
include a separate unclassified report containing the information 
collected pursuant to section 117(c)(7) of this title.''.
    SEC. 332. REPORT ON AVERAGE TRAVEL COSTS OF MEMBERS OF THE RESERVE 
      COMPONENTS.
    Not later than 180 days after the date of the enactment of this 
Act, the Comptroller General of the United States shall submit to the 
congressional defense committees a report on the travel expenses of 
members of reserve components associated with performing active duty 
service, active service, full-time National Guard duty, active Guard 
and Reserve duty, and inactive-duty training, as such terms are defined 
in section 101(d) of title 10, United States Code. Such report shall 
include the average annual cost for all travel expenses for a member of 
a reserve component.
    SEC. 333. REPORT ON HH-60G SUSTAINMENT AND COMBAT RESCUE HELICOPTER 
      PROGRAM.
    (a) Report on Sustainment Plan.--Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report that sets forth 
a plan to modernize, sustain training, and conduct depot-level 
maintenance and repair for all components of the HH-60 helicopter fleet 
until total force combat rescue units have been fully equipped with HH-
60W Combat Rescue Helicopters.
    (b) Elements.--The report required by subsection (a) shall include 
a description of the plans of the Air Force--
        (1) to modernize legacy HH-60G combat rescue helicopters;
        (2) to maintain the training pipeline for the HH-60G aircrew 
    and the maintenance force required to maintain full readiness 
    through the end of fiscal year 2029; and
        (3) to carry out depot-level maintenance and repair (as that 
    term is defined in section 2460 of title 10, United States Code) to 
    ensure the legacy HH-60G fleet of helicopters is maintained to meet 
    readiness rates through the end of fiscal year 2029.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may include a classified annex.

                       Subtitle E--Other Matters

    SEC. 341. AIR NAVIGATION MATTERS.
    (a) Expansion of Definition of Structures Interfering With Air 
Commerce and National Defense.--
        (1) Notice.--Section 44718(a) of title 49, United States Code, 
    is amended--
            (A) in paragraph (1), by striking ``and'' at the end;
            (B) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
            (C) by adding at the end the following:
        ``(3) the interests of national security, as determined by the 
    Secretary of Defense.''.
        (2) Studies.--Section 44718(b) of title 49, United States Code, 
    is amended to read as follows:
    ``(b) Studies.--
        ``(1) In general.--Under regulations prescribed by the 
    Secretary, if the Secretary decides that constructing or altering a 
    structure may result in an obstruction of the navigable airspace, 
    an interference with air navigation facilities and equipment or the 
    navigable airspace, or, after consultation with the Secretary of 
    Defense, an adverse impact on military operations and readiness, 
    the Secretary of Transportation shall conduct an aeronautical study 
    to decide the extent of any adverse impact on the safe and 
    efficient use of the airspace, facilities, or equipment. In 
    conducting the study, the Secretary shall--
            ``(A) consider factors relevant to the efficient and 
        effective use of the navigable airspace, including--
                ``(i) the impact on arrival, departure, and en route 
            procedures for aircraft operating under visual flight 
            rules;
                ``(ii) the impact on arrival, departure, and en route 
            procedures for aircraft operating under instrument flight 
            rules;
                ``(iii) the impact on existing public-use airports and 
            aeronautical facilities;
                ``(iv) the impact on planned public-use airports and 
            aeronautical facilities;
                ``(v) the cumulative impact resulting from the proposed 
            construction or alteration of a structure when combined 
            with the impact of other existing or proposed structures; 
            and
                ``(vi) other factors relevant to the efficient and 
            effective use of navigable airspace; and
            ``(B) include the finding made by the Secretary of Defense 
        under subsection (f).
        ``(2) Report.--On completing the study, the Secretary of 
    Transportation shall issue a report disclosing the extent of the--
            ``(A) adverse impact on the safe and efficient use of the 
        navigable airspace that the Secretary finds will result from 
        constructing or altering the structure; and
            ``(B) unacceptable risk to the national security of the 
        United States, as determined by the Secretary of Defense under 
        subsection (f).
        ``(3) Severability.--A determination by the Secretary of 
    Transportation on hazard to air navigation under this section shall 
    remain independent of a determination of unacceptable risk to the 
    national security of the United States by the Secretary of Defense 
    under subsection (f).''.
        (3) National security finding; definitions.--Section 44718 of 
    title 49, United States Code, is amended by adding at the end the 
    following:
    ``(f) National Security Finding.--As part of an aeronautical study 
conducted under subsection (b), the Secretary of Defense shall--
        ``(1) make a finding on whether the construction, alteration, 
    establishment, or expansion of a structure or sanitary landfill 
    included in the study would result in an unacceptable risk to the 
    national security of the United States; and
        ``(2) transmit the finding to the Secretary of Transportation 
    for inclusion in the report required under subsection (b)(2).
    ``(g) Definitions.--In this section, the following definitions 
apply:
        ``(1) Adverse impact on military operations and readiness.--The 
    term `adverse impact on military operations and readiness' has the 
    meaning given the term in section 211.3 of title 32, Code of 
    Federal Regulations, as in effect on January 6, 2014.
        ``(2) Unacceptable risk to the national security of the united 
    states.--The term `unacceptable risk to the national security of 
    the United States' has the meaning given the term in section 211.3 
    of title 32, Code of Federal Regulations, as in effect on January 
    6, 2014.''.
        (4) Conforming amendments.--
            (A) Section heading.--Section 44718 of title 49, United 
        States Code, is amended in the section heading by inserting 
        ``or national security'' after ``air commerce''.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 447 of title 49, United States Code, is 
        amended by striking the item relating to section 44718 and 
        inserting the following:

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

    (b) Performance-based Navigation.--Section 213(c) of the FAA 
Modernization and Reform Act of 2012 (Public Law 112-95; 49 U.S.C. 
40101 note) is amended by adding at the end the following:
        ``(3) Notifications and consultations.--Not later than 90 days 
    before applying a categorical exclusion under this subsection to a 
    new procedure at an OEP airport, the Administrator shall--
            ``(A) notify and consult with the operator of the airport 
        at which the procedure would be implemented; and
            ``(B) consider consultations or other engagement with the 
        community in the which the airport is located to inform the 
        public of the procedure.
        ``(4) Review of certain categorical exclusions.--
            ``(A) In general.--The Administrator shall review any 
        decision of the Administrator made on or after February 14, 
        2012, and before the date of the enactment of this paragraph to 
        grant a categorical exclusion under this subsection with 
        respect to a procedure to be implemented at an OEP airport that 
        was a material change from procedures previously in effect at 
        the airport to determine if the implementation of the procedure 
        had a significant effect on the human environment in the 
        community in which the airport is located.
            ``(B) Content of review.--If, in conducting a review under 
        subparagraph (A) with respect to a procedure implemented at an 
        OEP airport, the Administrator, in consultation with the 
        operator of the airport, determines that implementing the 
        procedure had a significant effect on the human environment in 
        the community in which the airport is located, the 
        Administrator shall--
                ``(i) consult with the operator of the airport to 
            identify measures to mitigate the effect of the procedure 
            on the human environment; and
                ``(ii) in conducting such consultations, consider the 
            use of alternative flight paths that do not substantially 
            degrade the efficiencies achieved by the implementation of 
            the procedure being reviewed.
            ``(C) Human environment defined.--In this paragraph, the 
        term `human environment' has the meaning given such term in 
        section 1508.14 of title 40, Code of Federal Regulations (as in 
        effect on the day before the date of the enactment of this 
        paragraph).''.
    SEC. 342. CONTRACT WORKING DOGS.
    (a) Required Contract Clause.--
        (1) In general.--Chapter 141 of title 10, United States Code, 
    is amended by adding at the end the following new section:
``Sec. 2410r. Contract working dogs: requirement to transfer animals to 
     341st Training Squadron after service life
    ``(a) In General.--Each contract entered into by the Secretary of 
Defense for the provision of a contract working dog shall require that 
the dog be transferred to the 341st Training Squadron after the service 
life of the dog has terminated as described in subsection (b) for 
reclassification as a military animal and placement for adoption in 
accordance with section 2583 of this title.
    ``(b) Service Life.--The service life of a contract working dog has 
terminated and the dog is available for transfer to the 341st Training 
Squadron pursuant to a contract under subsection (a) only if the 
contracting officer concerned has determined that--
        ``(1) the final contractual obligation of the dog preceding 
    such transfer is with the Department of Defense; and
        ``(2) the dog cannot be used by another department or agency of 
    the Federal Government due to age, injury, or performance.
    ``(c) Contract Working Dog.--In this section, the term `contract 
working dog' means a dog--
        ``(1) that performs a service for the Department of Defense 
    pursuant to a contract; and
        ``(2) that is trained and kenneled by an entity that provides 
    such a dog pursuant to such a contract.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by adding at the end the following new 
    item:

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

    (b) Inclusion in Definition of Military Animal.--Paragraph (1) of 
section 2583(h) of title 10, United States Code, is amended to read as 
follows:
        ``(1) A military working dog, which may include a contract 
    working dog (as such term is defined in section 2410r) that has 
    been transferred to the 341st Training Squadron.''.
    SEC. 343. PLAN, FUNDING DOCUMENTS, AND MANAGEMENT REVIEW RELATING 
      TO EXPLOSIVE ORDNANCE DISPOSAL.
    (a) Plan Required.--
        (1) In general.--The Secretary of Defense shall develop a plan 
    to establish an explosive ordnance disposal program in the 
    Department of Defense to ensure close and continuous coordination 
    among the military departments on matters relating to explosive 
    ordnance disposal.
        (2) Roles, responsibilities, and authorities.--The plan under 
    paragraph (1) shall include provisions under which--
            (A) the Secretary of Defense shall--
                (i) assign responsibility for the coordination and 
            integration of explosive ordnance disposal to a joint 
            office or entity in the Office of the Secretary of Defense; 
            and
                (ii) designate the Secretary of the Navy (or a designee 
            of the Secretary of the Navy) as the executive agent for 
            the Department of Defense to coordinate and integrate 
            research, development, test, and evaluation activities and 
            procurement activities of the military departments relating 
            to explosive ordnance disposal; and
            (B) the Secretary of each military department shall assess 
        the needs of the military department concerned with respect to 
        explosive ordnance disposal and may carry out research, 
        development, test, and evaluation activities and procurement 
        activities to address such needs.
    (b) Annual Explosive Ordnance Disposal Funding Documents.--
        (1) In general.--The Secretary of Defense shall submit to 
    Congress, as a part of the defense budget materials for each fiscal 
    year after fiscal year 2017, a consolidated funding display, in 
    classified and unclassified form, that identifies the funding 
    source for all explosive ordnance disposal activities within the 
    Department of Defense.
        (2) Elements.--The funding display under paragraph (1) for a 
    fiscal year shall include a single program element from each 
    military department for each of the following:
            (A) Research, development, test, and evaluation.
            (B) Procurement.
            (C) Operation and maintenance.
            (D) Any other program element used to fund explosive 
        ordnance disposal activities (but not including any program 
        element relating to military construction).
    (c) Management Review and Assessment.--
        (1) In general.--The Secretary of Defense shall review and 
    assess the effectiveness of current management structures in 
    supporting the explosive ordnance disposal needs of the combatant 
    commands and the military departments.
        (2) Elements.--The review and assessment under paragraph (1) 
    shall include the following:
            (A) A review of the organizational structures and 
        responsibilities within the Office of the Secretary of Defense 
        that provide policy and oversight of the policies, programs, 
        acquisition activities, and personnel of the military 
        departments relating to explosive ordnance disposal.
            (B) A review of the organizational structures and 
        responsibilities within the military departments that--
                (i) man, equip, and train explosive ordnance disposal 
            forces; and
                (ii) support such forces with manpower, technology, 
            equipment, and readiness.
            (C) A review of the organizational structures and 
        responsibilities of the Secretary of the Navy as the executive 
        agent for explosive ordnance disposal technology and training.
            (D) Budget displays for each military department that 
        support research, development, test, and evaluation; 
        procurement; and operation and maintenance, relating to 
        explosive ordnance disposal.
            (E) An assessment of the adequacy of the organizational 
        structures and responsibilities and the alignment of funding 
        within the military departments in supporting the needs of the 
        combatant commands and the military departments with respect to 
        explosive ordnance disposal.
    (d) Briefing.--Not later than March 1, 2017, the Secretary shall 
provide to the Committees on Armed Services of the Senate and the House 
of Representatives a briefing that includes--
        (1) details of the plan required under subsection (a);
        (2) the results of the review and assessment under subsection 
    (c);
        (3) a description of any measures undertaken to improve joint 
    coordination, oversight, and management of programs relating to 
    explosive ordnance disposal;
        (4) recommendations to the Secretary to improve the 
    capabilities and readiness of explosive ordnance disposal forces; 
    and
        (5) an explanation of the advantages and disadvantages of 
    assigning responsibility for the coordination and integration of 
    explosive ordnance disposal to a single joint office or entity in 
    the Office of the Secretary of Defense.
    (e) Definitions.--In this section:
        (1) Explosive ordnance.--The term ``explosive ordnance'' means 
    any munition containing explosives, nuclear fission or fusion 
    materials, or biological or chemical agents, including--
            (A) bombs and warheads;
            (B) guided and ballistic missiles;
            (C) artillery, mortar, rocket, and small arms munitions;
            (D) mines, torpedoes, and depth charges;
            (E) demolition charges;
            (F) pyrotechnics;
            (G) clusters and dispensers;
            (H) cartridge and propellant actuated devices;
            (I) electro-explosive devices; and
            (J) clandestine and improvised explosive devices.
        (2) Disposal.--The term ``disposal'' means, with respect to 
    explosive ordnance, the detection, identification, field 
    evaluation, defeat, disablement, or rendering safe, recovery and 
    exploitation, and final disposition of the ordnance.
    SEC. 344. PROCESS FOR COMMUNICATING AVAILABILITY OF SURPLUS 
      AMMUNITION.
    (a) In General.--The Secretary of Defense shall implement a formal 
process to provide Federal Government agencies outside the Department 
of Defense with information on the availability of surplus, serviceable 
ammunition from the Department of Defense for the purpose of reducing 
costs relating to the storage and disposal of such ammunition.
    (b) Implementation Deadline.--The Secretary shall implement the 
process described in subsection (a) beginning not later than 180 days 
after the date of the enactment of this Act.
    SEC. 345. MITIGATION OF RISKS POSED BY WINDOW COVERINGS WITH 
      ACCESSIBLE CORDS IN CERTAIN MILITARY HOUSING UNITS.
    (a) Removal of Certain Window Coverings.--Not later than three 
years after the date of enactment of this Act, the Secretary of Defense 
shall remove and replace disqualified window coverings from--
        (1) military housing units owned by the Department of Defense 
    in which children under the age of 9 may reside; and
        (2) military housing units leased by the Department of Defense 
    in which children under the age of 9 may reside if the lease for 
    such units requires the Department to provide window coverings.
    (b) Prohibition on Disqualified Window Coverings in Military 
Housing Units Acquired or Constructed by Contract.--All contracts 
entered into by the Secretary of Defense after September 30, 2017, for 
the acquisition or construction of military family housing, including 
military family housing acquired or constructed pursuant to subchapter 
IV of chapter 169 of title 10, United States Code, shall prohibit the 
use of disqualified window coverings in such housing.
    (c) Disqualified Window Covering Defined.--In this section, the 
term ``disqualified window covering'' means--
        (1) a window covering with an accessible cord that exceeds 8 
    inches in length; or
        (2) a window covering with an accessible continuous loop cord 
    that does not have a cord tension device that prevents operation 
    when the cord is not anchored to the wall.
    SEC. 346. ACCESS TO MILITARY INSTALLATIONS BY TRANSPORTATION 
      COMPANIES.
    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall establish 
policies under which covered drivers may be authorized to access 
military installations.
    (b) Elements.--The policies established under subsection (a)--
        (1) shall include the terms and conditions under which a 
    covered driver may be authorized to access a military installation;
        (2) may require a transportation company and a covered driver 
    to enter into a written agreement with the Department of Defense as 
    a precondition for obtaining authorization to access a military 
    installation;
        (3) shall be consistent across military installations, to the 
    extent practicable;
        (4) shall be designed to promote the expeditious entry of 
    covered drivers onto military installations for purposes of 
    providing commercial transportation services;
        (5) shall place appropriate restrictions on entry into 
    sensitive areas of military installations;
        (6) shall be designed, to the extent practicable, to give 
    covered drivers access to barracks areas, housing areas, temporary 
    lodging facilities, hospitals, and community support facilities;
        (7) shall require transportation companies--
            (A) to track, in real-time, the location of the entry and 
        exit of covered drivers onto and off of military installations; 
        and
            (B) to provide, on demand, the information described in 
        subparagraph (A) to appropriate personnel and agencies of the 
        Department; and
        (8) shall take into account force protection requirements and 
    ensure the protection and safety of members of the Armed Forces, 
    civilian employees of the Department of Defense, and the families 
    of such members and employees.
    (c) Confidentiality of Information.--The Secretary shall ensure 
that any information provided to the Department by a transportation 
company under subsection (b)(7)--
        (1) is treated as confidential and proprietary information of 
    the company that is exempt from public disclosure pursuant to 
    section 552 of title 5, United States Code (commonly known as the 
    ``Freedom of Information Act''); and
        (2) except as provided in subsection (b)(7), is not disclosed 
    to any person or entity without the express written consent of the 
    company unless disclosure of such information is required by a 
    court order.
    (d) Definitions.--In this section:
        (1) Transportation company.--The term ``transportation 
    company'' means a corporation, partnership, sole proprietorship, or 
    other entity outside of the Department of Defense that provides a 
    commercial transportation service to a rider, including a company 
    that uses a digital network to connect riders to covered drivers 
    for the purpose of providing such transportation service.
        (2) Covered driver.--The term ``covered driver''--
            (A) means an individual--
                (i) who is an employee of a transportation company or 
            who is affiliated with a transportation company; and
                (ii) who provides a commercial transportation service 
            to a rider; and
            (B) includes a vehicle operated by such individual for the 
        purpose of providing such service.
    SEC. 347. ACCESS TO WIRELESS HIGH-SPEED INTERNET AND NETWORK 
      CONNECTIONS FOR CERTAIN MEMBERS OF THE ARMED FORCES.
    (a) In General.--In providing members of the Armed Forces with 
access to high-speed wireless Internet and network connections at 
military installations outside the United States, the Secretary of 
Defense may provide such access without charge to the members and their 
dependents.
    (b) Contract Authority.--The Secretary may enter into contracts for 
the purpose of carrying out subsection (a).
    SEC. 348. LIMITATION ON AVAILABILITY OF FUNDS FOR OFFICE OF THE 
      UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.
    Of the funds authorized to be appropriated by this Act or otherwise 
made available for fiscal year 2017 for Operation and Maintenance, 
Defense-wide, for the Office of the Under Secretary of Defense for 
Intelligence, not more than 90 percent may be obligated or expended 
until the Secretary of Defense issues guidance on the process by which 
members of the Armed Forces may carry an appropriate firearm on a 
military installation, as required by section 526 of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 
Stat. 813; 10 U.S.C. 2672 note).
    SEC. 349. LIMITATION ON DEVELOPMENT AND FIELDING OF NEW CAMOUFLAGE 
      AND UTILITY UNIFORMS.
    None of the funds authorized to be appropriated by this Act or 
otherwise made available for the Department of Defense may be obligated 
or expended to develop or field new camouflage uniforms, new utility 
uniforms, or new families of uniforms until the date that is one year 
after the date on which the Secretary of Defense submits to the 
congressional defense committees notice of the intent of the Secretary 
to develop or field such uniforms.
    SEC. 350. PLAN FOR IMPROVED DEDICATED ADVERSARY AIR TRAINING 
      ENTERPRISE OF THE AIR FORCE.
    (a) In General.--The Chief of Staff of the Air Force shall develop 
a plan for an improved dedicated adversary air training enterprise for 
the Air Force--
        (1) to maximize warfighting effectiveness and synergies of the 
    current and planned fourth and fifth generation combat air forces 
    through optimized training and readiness;
        (2) to harness intelligence analysis, emerging live-virtual-
    constructive training technologies, range infrastructure 
    improvements, and results of experimentation and prototyping 
    efforts in operational concept development;
        (3) to challenge the combat air forces of the Air Force with 
    threat representative adversary-to-friendly aircraft ratios, known 
    and emerging adversary tactics, and high fidelity replication of 
    threat airborne and ground capabilities; and
        (4) to achieve training and readiness goals and objectives of 
    the Air Force with demonstrated institutional commitment to the 
    adversary air training enterprise through the application of Air 
    Force policy and resources, partnering with the other Armed Forces, 
    allies, and friends, and employing the use of industry contracted 
    services.
    (b) Elements.--The plan under subsection (a) shall include, with 
respect to an improved dedicated adversary air training enterprise, the 
following:
        (1) Goals and objectives.
        (2) Concepts of operations.
        (3) Timelines for the phased implementation of the enterprise.
        (4) Analysis of readiness improvements that may result from the 
    enterprise.
        (5) Prioritized resource requirements.
        (6) Such other matters as the Chief of Staff considers 
    appropriate.
    (c) Written Plan and Briefing.--Not later than March 3, 2017, the 
Chief of Staff shall provide to the Committees on Armed Services of the 
Senate and the House of Representatives--
        (1) a written version of the plan developed under subsection 
    (a); and
        (2) a briefing on such plan.
    SEC. 351. INDEPENDENT REVIEW AND ASSESSMENT OF THE READY AIRCREW 
      PROGRAM OF THE AIR FORCE.
    (a) Independent Review and Assessment.--The Secretary of the Air 
Force shall enter into a contract with an independent entity with 
appropriate expertise--
        (1) to conduct a review and assessment of--
            (A) the assumptions underlying the annual continuation 
        training requirements of the Air Force; and
            (B) the overall effectiveness of the Ready Aircrew Program 
        of the Air Force in managing aircrew training requirements; and
        (2) to make recommendations for the improved management of such 
    training requirements.
    (b) Report.--
        (1) In general.--Not later than 120 days after the date of the 
    enactment of this Act, the Secretary of the Air Force shall submit 
    to the congressional defense committees a report on the review and 
    assessment conducted under subsection (a).
        (2) Elements.--The report under paragraph (1) shall include an 
    examination of the following:
            (A) For the aircrews of each type of combat aircraft and by 
        mission type--
                (i) the number of sorties required to reach minimum and 
            optimal levels of proficiency, respectively;
                (ii) the optimal mix of live and virtual training 
            sorties; and
                (iii) the optimal mix of experienced aircrews versus 
            inexperienced aircrews.
            (B) The availability of assets and infrastructure to 
        support the achievement of aircrew proficiency levels and an 
        explanation of any requirements relating to such assets and 
        infrastructure.
            (C) The accumulated flying hours or other measurements used 
        to determine if an aircrew qualifies for designation as an 
        experienced aircrew, and whether different measurements should 
        be used.
            (D) Any actions taken or planned to be taken to implement 
        recommendations resulting from the independent review and 
        assessment under subsection (a), including an estimate of the 
        resources required to implement such recommendations.
            (E) Any other matters the Secretary determines are 
        appropriate to ensure a comprehensive review and assessment.
    (c) Comptroller General Review.--
        (1) In general.--The Comptroller General of the United States 
    shall submit to the congressional defense committees a review of 
    the report described in subsection (b). Such review shall include 
    an assessment of--
            (A) the extent to which the report addressed the elements 
        described in paragraph (2) of such subsection;
            (B) the adequacy and completeness of the assumptions 
        reviewed to establish the annual training requirements of the 
        Air Force;
            (C) any actions the Air Force plans to carry out to 
        incorporate the results of the report into annual training 
        documents; and
            (D) any other matters the Comptroller General determines 
        are relevant.
        (2) Briefing.--Not later than 60 days after the date on which 
    the Secretary of the Air Force submits the report under subsection 
    (b) and prior to submitting the review required under paragraph 
    (1), the Comptroller General shall provide a briefing to the 
    congressional defense committees on the preliminary results of the 
    review conducted under such paragraph.
    SEC. 352. STUDY ON SPACE-AVAILABLE TRAVEL SYSTEM OF THE DEPARTMENT 
      OF DEFENSE.
    (a) Study Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall seek to enter 
into a contract with a federally funded research and development center 
to conduct an independent study on the space-available travel system of 
the Department of Defense.
    (b) Report Required.--Not later than 180 days after entering into a 
contract with a federally funded research and development center under 
subsection (a), the Secretary shall submit to the congressional defense 
committees a report summarizing the results of the study conducted 
under such subsection.
    (c) Elements.--The report under subsection (b) shall include, with 
respect to the space-available travel system, the following:
        (1) A determination of--
            (A) the capacity of the system as of the date of the 
        enactment of this Act;
            (B) the projected capacity of the system for the 10-year 
        period following such date of enactment; and
            (C) the projected number of reserve retirees, active duty 
        retirees, and dependents of such retirees that will exist by 
        the end of such 10-year period.
        (2) Estimates of system capacity based the projections 
    described in paragraph (1).
        (3) A discussion of the efficiency of the system and data 
    regarding the use of available space with respect to each category 
    of passengers eligible for space-available travel under existing 
    regulations.
        (4) A description of the effect on system capacity if 
    eligibility for space-available travel is extended to--
            (A) drilling reserve component personnel and dependents of 
        such personnel on international flights;
            (B) dependents of reserve component retirees who are less 
        than 60 years of age;
            (C) retirees who are less than 60 years of age on 
        international flights;
            (D) drilling reserve component personnel traveling to 
        drilling locations; and
            (E) members or former members of the Armed Forces who have 
        a disability rated as total, if space-available travel is 
        provided to such members on the same basis as such travel is 
        provided to members of the Armed Forces entitled to retired or 
        retainer pay.
        (5) A discussion of logistical and management problems, 
    including congestion at terminals, waiting times, lodging 
    availability, and personal hardships experienced by travelers.
        (6) An evaluation of the cost of the system and whether space-
    available travel is and can remain cost-neutral.
        (7) An evaluation of the feasibility of expanding the 
    categories of passengers eligible for space-available travel to 
    include--
            (A) in the case of overseas travel, retired members of an 
        active or reserve component, including retired members of 
        reserve components, who, but for being under the eligibility 
        age applicable to the member under section 12731 of title 10, 
        United States Code, would be eligible for retired pay under 
        chapter 1223 of such title;
            (B) unremarried widows and widowers of active or reserve 
        component members of the Armed Forces; and
            (C) members or former members of the Armed Forces who have 
        a disability rated as total, if space-available travel is 
        provided to such members on the same basis as such travel is 
        provided to members of the Armed Forces entitled to retired or 
        retainer pay.
        (8) Such other factors relating to the efficiency and cost of 
    the system as the Secretary determines to be appropriate.
    (d) Additional Responsibilities.--In addition to carrying out 
subsections (a) through (c), the Secretary of Defense shall--
        (1) analyze the methods used to prioritize among the categories 
    of individuals eligible for space-available travel and make 
    recommendations for--
            (A) re-ordering the priority of such categories; and
            (B) adding additional categories of eligible individuals; 
        and
        (2) collect data on travelers who request but do not obtain 
    available travel spaces under the space-available travel system.
    (e) Disability Rated as Total Defined.--In this section, the term 
``disability rated as total'' has the meaning given the term in section 
1414(e)(3) of title 10, United States Code.
    SEC. 353. EVALUATION OF MOTOR CARRIER SAFETY PERFORMANCE AND SAFETY 
      TECHNOLOGY.
    (a) In General.--The Secretary of Defense shall evaluate the need 
for proven safety technology in vehicles transporting shipments under 
the Transportation Protective Services program of the United States 
Transportation Command, including--
        (1) electronic logging devices;
        (2) roll stability control;
        (3) forward collision avoidance systems;
        (4) lane departure warning systems; and
        (5) speed limiters.
    (b) Considerations.--In carrying out subsection (a), the Secretary 
shall--
        (1) consider the need to avoid catastrophic accidents and 
    exposure of security-sensitive materials; and
        (2) take into the account the findings of the Government 
    Accountability Office report numbered GAO-16-82 and titled 
    ``Defense Transportation; DoD Needs to Improve the Evaluation of 
    Safety and Performance Information for Carriers Transporting 
    Security-Sensitive Materials''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                       Subtitle A--Active Forces

    SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2017, as follows:
        (1) The Army, 476,000.
        (2) The Navy, 323,900.
        (3) The Marine Corps, 185,000.
        (4) The Air Force, 321,000.
    SEC. 402. REVISIONS IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
      LEVELS.
    Section 691(b) of title 10, United States Code, is amended by 
striking paragraphs (1) through (4) and inserting the following new 
paragraphs:
        ``(1) For the Army, 476,000.
        ``(2) For the Navy, 323,900.
        ``(3) For the Marine Corps, 185,000.
        ``(4) For the Air Force, 321,000.''.

                       Subtitle B--Reserve Forces

    SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2017, as follows:
        (1) The Army National Guard of the United States, 343,000.
        (2) The Army Reserve, 199,000.
        (3) The Navy Reserve, 58,000.
        (4) The Marine Corps Reserve, 38,500.
        (5) The Air National Guard of the United States, 105,700.
        (6) The Air Force Reserve, 69,000.
        (7) The Coast Guard Reserve, 7,000.
    (b) End Strength Reductions.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve component shall 
be proportionately reduced by--
        (1) the total authorized strength of units organized to serve 
    as units of the Selected Reserve of such component which are on 
    active duty (other than for training) at the end of the fiscal 
    year; and
        (2) the total number of individual members not in units 
    organized to serve as units of the Selected Reserve of such 
    component who are on active duty (other than for training or for 
    unsatisfactory participation in training) without their consent at 
    the end of the fiscal year.
    (c) End Strength Increases.--Whenever units or individual members 
of the Selected Reserve for any reserve component are released from 
active duty during any fiscal year, the end strength prescribed for 
such fiscal year for the Selected Reserve of such reserve component 
shall be increased proportionately by the total authorized strengths of 
such units and by the total number of such individual members.
    SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF 
      THE RESERVES.
    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2017, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
        (1) The Army National Guard of the United States, 30,155.
        (2) The Army Reserve, 16,261.
        (3) The Navy Reserve, 9,955.
        (4) The Marine Corps Reserve, 2,261.
        (5) The Air National Guard of the United States, 14,764.
        (6) The Air Force Reserve, 2,955.
    SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).
    (a) In General.--The authorized number of military technicians 
(dual status) as of September 30, 2017, for the reserve components of 
the Army and the Air Force (notwithstanding section 129 of title 10, 
United States Code) shall be the following:
        (1) For the Army National Guard of the United States, 25,507.
        (2) For the Army Reserve, 7,570.
        (3) For the Air National Guard of the United States, 22,103.
        (4) For the Air Force Reserve, 10,061.
    (b) Variance.--Notwithstanding section 115 of title 10, United 
States Code, the end strength prescribed by subsection (a) for a 
reserve component specified in that subsection may be increased--
        (1) by 3 percent, upon determination by the Secretary of 
    Defense that such action is in the national interest; and
        (2) by 2 percent, upon determination by the Secretary of the 
    military department concerned that such action would enhance 
    manning and readiness in essential units or in critical specialties 
    or ratings.
    SEC. 414. FISCAL YEAR 2017 LIMITATION ON NUMBER OF NON-DUAL STATUS 
      TECHNICIANS.
    (a) Limitations.--
        (1) National guard.--Within the limitation provided in section 
    10217(c)(2) of title 10, United States Code, the number of non-dual 
    status technicians employed by the National Guard as of September 
    30, 2017, may not exceed the following:
            (A) For the Army National Guard of the United States, 
        1,600.
            (B) For the Air National Guard of the United States, 350.
        (2) Army reserve.--The number of non-dual status technicians 
    employed by the Army Reserve as of September 30, 2017, may not 
    exceed 420.
        (3) Air force reserve.--The number of non-dual status 
    technicians employed by the Air Force Reserve as of September 30, 
    2017, may not exceed 90.
    (b) Non-dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.
    SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
      ACTIVE DUTY FOR OPERATIONAL SUPPORT.
    During fiscal year 2017, the maximum number of members of the 
reserve components of the Armed Forces who may be serving at any time 
on full-time operational support duty under section 115(b) of title 10, 
United States Code, is the following:
        (1) The Army National Guard of the United States, 17,000.
        (2) The Army Reserve, 13,000.
        (3) The Navy Reserve, 6,200.
        (4) The Marine Corps Reserve, 3,000.
        (5) The Air National Guard of the United States, 16,000.
        (6) The Air Force Reserve, 14,000.
    SEC. 416. TECHNICAL CORRECTIONS TO ANNUAL AUTHORIZATION FOR 
      PERSONNEL STRENGTHS.
    Section 115 of title 10, United States Code, is amended--
        (1) in subsection (b)(1)--
            (A) in subparagraph (B), by striking ``502(f)(2)'' and 
        inserting ``502(f)(1)(B)''; and
            (B) in subparagraph (C), by striking ``502(f)(2)'' and 
        inserting ``502(f)(1)(B)''; and
        (2) in subsection (i)(7), by striking ``502(f)(1)'' and 
    inserting ``502(f)(1)(A)''.

              Subtitle C--Authorization of Appropriations

    SEC. 421. MILITARY PERSONNEL.
    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal year 2017 for the use of the Armed Forces 
and other activities and agencies of the Department of Defense for 
expenses, not otherwise provided for, for military personnel, as 
specified in the funding table in section 4401.
    (b) Construction of Authorization.--The authorization of 
appropriations in subsection (a) supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for fiscal 
year 2017.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                Subtitle B--Reserve Component Management

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

                 Subtitle C--General Service Authorities

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

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

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

        Subtitle E--Military Justice and Legal Assistance Matters

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

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

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

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

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

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

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

                   Subtitle I--Decorations and Awards

 Sec. 581. Posthumous advancement of Colonel George E. ``Bud'' Day, 
          United States Air Force, on the retired list.
Sec. 582. Authorization for award of medals for acts of valor during 
          certain contingency operations.
Sec. 583. Authorization for award of the Medal of Honor to Gary M. Rose 
          and James C. McCloughan for acts of valor during the Vietnam 
          War.
Sec. 584. Authorization for award of Distinguished-Service Cross to 
          First Lieutenant Melvin M. Spruiell for acts of valor during 
          World War II.
Sec. 585. Authorization for award of the Distinguished Service Cross to 
          Chaplain (First Lieutenant) Joseph Verbis LaFleur for acts of 
          valor during World War II.
Sec. 586. Review regarding award of Medal of Honor to certain Asian 
          American and Native American Pacific Islander war veterans.

           Subtitle J--Miscellaneous Reports and Other Matters

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

                  Subtitle A--Officer Personnel Policy

    SEC. 501. REDUCTION IN NUMBER OF GENERAL AND FLAG OFFICERS ON 
      ACTIVE DUTY AND AUTHORIZED STRENGTH AFTER DECEMBER 31, 2022, OF 
      SUCH GENERAL AND FLAG OFFICERS.
    (a) Reduction in Number of General and Flag Officers by December 
31, 2022.--
        (1) Required reduction.--Except as otherwise provided by an Act 
    enacted after the date of the enactment of this Act that expressly 
    modifies the requirements of this paragraph, by not later than 
    December 31, 2022, the Secretary of Defense shall reduce the number 
    of general and flag officers on active duty by 110 from the 
    aggregate authorized number of general and flag officers authorized 
    by sections 525 and 526 of title 10, United States Code, as of 
    December 31, 2015.
        (2) Distribution of authorized positions.--Effective as of 
    December 31, 2022, and reflecting the reduction required by 
    paragraph (1), authorized general and flag officer positions shall 
    be distributed among the Army, Navy, Air Force, Marine Corps, and 
    joint pool as follows:
            (A) The Army is authorized 220 positions in the general 
        officer grades.
            (B) The Navy is authorized 151 positions in the flag 
        officer grades.
            (C) The Air Force is authorized 187 positions in the 
        general officer grades.
            (D) The Marine Corps is authorized 62 positions in the 
        general officer grades.
            (E) The joint pool is authorized 232 positions in the 
        general or flag officer grades, to be distributed as follows:
                (i) 82 positions in the general officer grades from the 
            Army.
                (ii) 60 positions in the flag officer grades from the 
            Navy.
                (iii) 69 positions in the general officer grades from 
            the Air Force.
                (iv) 21 positions in the general officer grades from 
            the Marine Corps.
        (3) Temporary additional joint pool allocation.--In addition to 
    the positions authorized by paragraph (2), the 30 general and flag 
    officer positions designated for overseas contingency operations 
    are authorized as an additional maximum temporary allocation to the 
    joint pool.
    (b) Plan to Achieve Required Reduction and Distribution.--
        (1) Plan required.--Utilizing the study conducted under 
    subsection (c), the Secretary of Defense shall develop a plan to 
    achieve, by the date specified in subsection (a)(1)--
            (A) the reduction required by such subsection in the number 
        of general and flag officers; and
            (B) the distribution of authorized positions required by 
        subsection (a)(2).
        (2) Submission of plan.--When the budget for the Department of 
    Defense for fiscal year 2019 is submitted to Congress pursuant to 
    section 1105 of title 31, United States Code, the Secretary of 
    Defense shall submit to the Committees on Armed Services of the 
    Senate and the House of Representatives a report setting forth the 
    plan developed under this subsection.
        (3) Progress reports.--The Secretary of Defense shall include 
    with the budget for the Department of Defense for each of fiscal 
    years 2020, 2021, and 2022 a report describing and assessing the 
    progress of the Secretary in implementing the plan developed under 
    this subsection.
    (c) Study for Purposes of Plan.--
        (1) Study required.--For purposes of complying with subsection 
    (a) and preparing the plan required by subsection (b), the 
    Secretary of Defense shall conduct a comprehensive and deliberate 
    global manpower study of requirements for general and flag officers 
    with the goal of identifying--
            (A) the requirement justification for each general or flag 
        officer position in terms of overall force structure, scope of 
        responsibility, command and control requirements, and force 
        readiness and execution;
            (B) an additional 10 percent reduction in the aggregate 
        number of authorized general officer and flag officer positions 
        after the reductions required by subsection (a); and
            (C) an appropriate redistribution of all general officer 
        and flag officer positions within the reductions so identified.
        (2) Submission of study results.--Not later than April 1, 2017, 
    the Secretary of Defense shall submit to the Committees on Armed 
    Services of the Senate and the House of Representatives a report 
    setting forth the results of the study conducted under this 
    subsection, including the justification for general and flag 
    officer position to be retained and the reductions identified by 
    general and flag officer position.
        (3) Interim report.--If practicable before the date specified 
    in paragraph (2), the Secretary of Defense shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives an interim report describing the progress made 
    toward the completion of the study under this subsection, 
    including--
            (A) the specific general and flag officer positions that 
        have been evaluated;
            (B) the results of that evaluation; and
            (C) recommendations for achieving the additional 10 percent 
        reduction in the aggregate number of authorized general officer 
        and flag officer positions to be identified under paragraph 
        (1)(C) and recommendations for redistribution of general and 
        flag officer positions that have been developed to that point.
    (d) Exclusions.--
        (1) Related to joint duty assignments.--For purposes of 
    complying with subsection (a), the Secretary of Defense may 
    exclude--
            (A) a general or flag officer released from a joint duty 
        assignment, but only during the 60-day period beginning on the 
        date the officer departs the joint duty assignment, except that 
        the Secretary may authorize the Secretary of a military 
        department to extend the 60-day period by an additional 120 
        days, but not more than three officers on active duty from each 
        Armed Force may be covered by the additional extension at the 
        same time; and
            (B) the number of officers required to serve in joint duty 
        assignments for each Armed Force as authorized by the Secretary 
        under section 526a(b) of title 10, United States Code, as added 
        by subsection (h) of this section.
        (2) Related to relief from chief of staff duty.--For purposes 
    of complying with subsection (a), the Secretary of Defense may 
    exclude an officer who continues to hold the grade of general or 
    admiral under section 601(b)(5) of title 10, United States Code, 
    after relief from the position of Chairman of the Joint Chiefs of 
    Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief 
    of Staff of the Air Force, or Commandant of the Marine Corps.
        (3) Related to retirement, separation, release, or relief.--For 
    purposes of complying with subsection (a), the Secretary of Defense 
    may exclude the following officers:
            (A) An officer of an Armed Force in the grade of brigadier 
        general or above or, in the case of the Navy, in the grade of 
        rear admiral (lower half) or above, who is on leave pending the 
        retirement, separation, or release of that officer from active 
        duty, but only during the 60-day period beginning on the date 
        of the commencement of such leave of such officer.
            (B) An officer of an Armed Force who has been relieved from 
        a position designated under section 601(a) of title 10, United 
        States Code, or by law to carry one of the grades specified in 
        such section, but only during the 60-day period beginning on 
        the date on which the assignment of the officer to the first 
        position is terminated or until the officer is assigned to a 
        second such position, whichever occurs first.
    (e) Secretarial Authority to Grant Exceptions to Limitations.--
        (1) In general.--Subject to paragraph (2), the Secretary of 
    Defense may alter the reduction otherwise required by subsection 
    (a)(1) in the number of general and flag officer or the 
    distribution of authorized positions otherwise required by 
    subsection (a)(2) in the interest of the national security of the 
    United States.
        (2) Notice to congress of exceptions.--Not later than 30 days 
    after authorizing a number of general or flag officers in excess of 
    the number required as a result of the reduction required by 
    subsection (a)(1) or altering the distribution of authorized 
    positions under subsection (a)(2), the Secretary of Defense shall 
    submit to the Committees on Armed Services of the Senate and the 
    House of Representatives written notice of such exception, 
    including a statement of the reason for such exception and the 
    anticipated duration of the exception.
    (f) Orderly Transition for Officers Recently Assigned to Positions 
to Be Eliminated.--
        (1) Covered officers.--In order to provide an orderly 
    transition for personnel in general or flag officer positions to be 
    eliminated pursuant to the plan prepared under subsection (b), any 
    general or flag officer who has not completed, as of December 31, 
    2022, at least 24 months in a position to be eliminated pursuant to 
    the plan may remain in the position until the last day of the month 
    that is 24 months after the month in which the officer assumed the 
    duties of the position.
        (2) Report to congress on covered officers.--The Secretary of 
    Defense shall include in the annual report required by section 
    526(j) of title 10, United States Code, in 2020 a description of 
    the positions in which an officer will remain pursuant to paragraph 
    (1), including the latest date on which the officer may remain in 
    such position pursuant to that paragraph.
        (3) Notice to congress on detachment of covered officers.--The 
    Secretary of Defense shall submit to the Committees on Armed 
    Services of the Senate and the House of Representatives a notice on 
    the date on which each officer covered by paragraph (1) is detached 
    from the officer's position pursuant to such paragraph.
    (g) Relation to Subsequent General or Flag Nominations.--
        (1) Notice to senate with nomination.--In order to help achieve 
    the requirements of the plan required by subsection (b), effective 
    30 days after the commencement of the implementation of the plan, 
    the Secretary of Defense shall include with each nomination of an 
    officer to a grade above colonel or captain (in the case of the 
    Navy) that is forwarded by the President to the Senate for 
    appointment, by and with the advice and consent of the Senate, a 
    certification to the Committee on Armed Services of the Senate that 
    the appointment of the officer to the grade concerned will not 
    interfere with achieving the reduction required by subsection 
    (a)(1) in the number of general and flag officer positions or the 
    distribution of authorized positions required by subsection (a)(2).
        (2) Implementation.--Not later than 120 days after the date of 
    the submission of the plan required by subsection (b), the 
    Secretary of Defense shall revise applicable guidance of the 
    Department of Defense on general and flag officer authorizations in 
    order to ensure that--
            (A) the achievement of the reductions required pursuant to 
        subsection (a) is incorporated into the planning for the 
        execution of promotions by the military departments and for the 
        joint pool;
            (B) to the extent practicable, the resulting grades for 
        general and flag officer positions are uniformly applied to 
        positions of similar duties and responsibilities across the 
        military departments and the joint pool; and
            (C) planning achieves a reduction in the headquarters 
        functions and administrative and support activities and staffs 
        of the Department of Defense and the military departments 
        commensurate with the achievement of the reductions required 
        pursuant to subsection (a).
    (h) Authorized Strength After December 31, 2022, of General and 
Flag Officers on Active Duty.--
        (1) In general.--Chapter 32 of title 10, United States Code, is 
    amended by inserting after section 526 the following new section:
``Sec. 526a. Authorized strength after December 31, 2022: general 
    officers and flag officers on active duty
    ``(a) Limitations.--The number of general officers on active duty 
in the Army, Air Force, and Marine Corps, and the number of flag 
officers on active duty in the Navy, after December 31, 2022, may not 
exceed the number specified for the armed force concerned as follows:
        ``(1) For the Army, 220.
        ``(2) For the Navy, 151.
        ``(3) For the Air Force, 187.
        ``(4) For the Marine Corps, 62.
    ``(b) Limited Exclusion for Joint Duty Requirements.--
        ``(1) In general.--The Secretary of Defense may designate up to 
    232 general officer and flag officer positions that are joint duty 
    assignments for purposes of chapter 38 of this title for exclusion 
    from the limitations in subsection (a).
        ``(2) Minimum number.--Unless the Secretary of Defense 
    determines that a lower number is in the best interest of the 
    Department of Defense, the minimum number of officers serving in 
    positions designated under paragraph (1) for each armed force shall 
    be as follows:
            ``(A) For the Army, 75.
            ``(B) For the Navy, 53.
            ``(C) For the Air Force, 68.
            ``(D) For the Marine Corps, 17.
    ``(c) Exclusion of Certain Officers Pending Separation or 
Retirement or Between Senior Positions.--The limitations of this 
section do not apply to--
        ``(1) an officer of an armed force in the grade of brigadier 
    general or above or, in the case of the Navy, in the grade of rear 
    admiral (lower half) or above, who is on leave pending the 
    retirement, separation, or release of that officer from active 
    duty, but only during the 60-day period beginning on the date of 
    the commencement of such leave of such officer; or
        ``(2) an officer of an armed force who has been relieved from a 
    position designated under section 601(a) of this title or by law to 
    carry one of the grades specified in such section, but only during 
    the 60-day period beginning on the date on which the assignment of 
    the officer to the first position is terminated or until the 
    officer is assigned to a second such position, whichever occurs 
    first.
    ``(d) Temporary Exclusion for Assignment to Certain Temporary 
Billets.--
        ``(1) In general.--The limitations in subsection (a) do not 
    apply to a general officer or flag officer assigned to a temporary 
    joint duty assignment designated by the Secretary of Defense.
        ``(2) Duration of exclusion.--A general officer or flag officer 
    assigned to a temporary joint duty assignment as described in 
    paragraph (1) may not be excluded under this subsection from the 
    limitations in subsection (a) for a period of longer than one year.
    ``(e) Exclusion of Officers Departing From Joint Duty 
Assignments.--The limitations in subsection (a) do not apply to an 
officer released from a joint duty assignment, but only during the 60-
day period beginning on the date the officer departs the joint duty 
assignment. The Secretary of Defense may authorize the Secretary of a 
military department to extend the 60-day period by an additional 120 
days, except that not more than three officers on active duty from each 
armed force may be covered by the additional extension at the same 
time.
    ``(f) Active-Duty Baseline.--
        ``(1) Notice and wait requirements.--If the Secretary of a 
    military department proposes an action that would increase above 
    the baseline the number of general officers or flag officers of an 
    armed force under the jurisdiction of that Secretary who would be 
    on active duty and would count against the statutory limit 
    applicable to that armed force under subsection (a), the action 
    shall not take effect until after the end of the 60-calendar day 
    period beginning on the date on which the Secretary provides notice 
    of the proposed action, including the rationale for the action, to 
    the Committees on Armed Services of the Senate and the House of 
    Representatives.
        ``(2) Baseline defined.--In paragraph (1), the term `baseline' 
    for an armed force means the lower of--
            ``(A) the statutory limit of general officers or flag 
        officers of that armed force under subsection (a); or
            ``(B) the actual number of general officers or flag 
        officers of that armed force who, as of January 1, 2023, 
        counted toward the statutory limit of general officers or flag 
        officers of that armed force under subsection (a).
    ``(g) Joint Duty Assignment Baseline.--
        ``(1) Notice and wait requirement.--If the Secretary of 
    Defense, the Secretary of a military department, or the Chairman of 
    the Joint Chiefs of Staff proposes an action that would increase 
    above the baseline the number of general officers and flag officers 
    of the armed forces in joint duty assignments who count against the 
    statutory limit under subsection (b)(1), the action shall not take 
    effect until after the end of the 60-calendar day period beginning 
    on the date on which such Secretary or the Chairman, as the case 
    may be, provides notice of the proposed action, including the 
    rationale for the action, to the Committees on Armed Services of 
    the Senate and the House of Representatives.
        ``(2) Baseline defined.--In paragraph (1), the term `baseline' 
    means the lower of--
            ``(A) the statutory limit on general officer and flag 
        officer positions that are joint duty assignments under 
        subsection (b)(1); or
            ``(B) the actual number of general officers and flag 
        officers who, as of January 1, 2023, were in joint duty 
        assignments counted toward the statutory limit under subsection 
        (b)(1).
    ``(h) Annual Report.--Not later than March 1 each year, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report specifying the 
following:
        ``(1) The numbers of general officers and flag officers who, as 
    of January 1 of the calendar year in which the report is submitted, 
    counted toward the service-specific limits of subsection (a).
        ``(2) The number of general officers and flag officers in joint 
    duty assignments who, as of such January 1, counted toward the 
    statutory limit under subsection (b)(1).''.
        (2) Conforming amendment.--Section 526 of title 10, United 
    States Code, is amended by adding at the end the following new 
    subsection:
    ``(k) Cessation of Applicability.--The provisions of this section 
shall not apply to number of general officers and flag officers in the 
armed forces after December 31, 2022. For provisions applicable to the 
number of such officers after that date, see section 526a of this 
title.''.
        (3) Clerical amendment.--The table of sections at the beginning 
    of chapter 32 of title 10, United States Code, is amended by 
    inserting after the item relating to section 526 the following new 
    item:

``526a. Authorized strength after December 31, 2022: general officers 
          and flag officers on active duty.''.
    SEC. 502. REPEAL OF STATUTORY SPECIFICATION OF GENERAL OR FLAG 
      OFFICER GRADE FOR VARIOUS POSITIONS IN THE ARMED FORCES.
    (a) Assistants to CJCS for NG Matters and Reserve Matters.--
        (1) In general.--Section 155a of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 5 of such title is amended by striking the item relating 
    to section 155a.
    (b) Legal Counsel to CJCS.--Section 156 of title 10, United States 
Code, is amended--
        (1) by striking subsection (c); and
        (2) by redesignating subsection (d) as subsection (c).
    (c) Director of Test Resource Management Center.--Section 196(b)(1) 
of title 10, United States Code, is amended by striking the second and 
third sentences.
    (d) Director of Missile Defense Agency.--
        (1) In general.--Section 203 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 8 of such title is amended by striking the item relating 
    to section 203.
    (e) Joint 4-Star Positions.--Section 604(b) of title 10, United 
States Code, is amended by striking paragraph (3).
    (f) Senior Members of Military Staff Committee of UN.--Section 711 
of title 10, United States Code, is amended by striking the second 
sentence.
    (g) Chief of Staff to President.--
        (1) In general.--Section 720 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 41 of such title is amended by striking the item 
    relating to section 720.
    (h) Attending Physician to Congress.--
        (1) In general.--Section 722 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 41 of such title is amended by striking the item 
    relating to section 722.
    (i) Physician to White House.--
        (1) In general.--Section 744 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 43 of such title is amended by striking the item 
    relating to section 744.
    (j) Chief of Legislative Liaison of the Army.--Section 3023(a) of 
title 10, United States Code, is amended by striking the second 
sentence.
    (k) Chiefs of Branches of the Army.--Section 3036(b) of title 10, 
United States Code, is amended in the flush matter following paragraph 
(2)--
        (1) by striking the first sentence; and
        (2) in the second sentence, by striking ``, and while so 
    serving, has the grade of lieutenant general''.
    (l) Judge Advocate General of the Army.--Section 3037(a) of title 
10, United States Code, is amended by striking the last two sentences.
    (m) Chief of Army Reserve.--Section 3038(c) of title 10, United 
States Code, is amended--
        (1) in the subsection heading, by striking ``; Grade'';
        (2) by striking ``(1)''; and
        (3) by striking paragraph (2).
    (n) Deputy and Assistant Chiefs of Branches of the Army.--
        (1) In general.--Section 3039 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 305 of such title is amended by striking the item 
    relating to section 3039.
    (o) Chief of Army Nurse Corps.--Section 3069(b) of title 10, United 
States Code, is amended by striking the second sentence.
    (p) Assistant Chiefs of Army Medical Specialist Corps.--
        (1) In general.--Section 3070 of title 10, United States Code, 
    is amended--
            (A) in subsection (a), by striking ``and assistant 
        chiefs'';
            (B) by striking subsection (c); and
            (C) by redesignating subsection (d) as subsection (c).
        (2) Conforming amendment.--The heading of such section is 
    amended to read as follows:
``Sec. 3070. Army Medical Specialist Corps: organization; Chief''.
        (3) Clerical amendment.--The table of sections at the beginning 
    of chapter 307 of such title is amended by striking the item 
    relating to section 3070 and inserting the following new item:

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

    (q) Judge Advocate General's Corps of the Army.--Section 3072 of 
title 10, United States Code, is amended--
        (1) by striking paragraph (3); and
        (2) by redesignating paragraphs (4) and (5) as paragraphs (3) 
    and (4), respectively.
    (r) Chief of Veterinary Corps of the Army.--
        (1) In general.--Section 3084 of title 10, United States Code, 
    is amended by striking the second sentence.
        (2) Conforming amendment.--The heading of such section is 
    amended to read as follows:
``Sec. 3084. Chief of Veterinary Corps''.
        (3) Clerical amendment.--The table of sections at the beginning 
    of chapter 307 of such title is amended by striking the item 
    relating to section 3084 and inserting the following new item:

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

    (s) Army Aides.--
        (1) In general.--Section 3543 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 343 of such title is amended by striking the item 
    relating to section 3543.
    (t) Principal Military Deputy to Assistant Secretary of the Navy 
for RD&A.--Section 5016(b)(4)(B) of title 10, United States Code, is 
amended by striking ``a vice admiral of the Navy or a lieutenant 
general of the Marine Corps'' and inserting ``an officer of the Navy or 
the Marine Corps''.
    (u) Chief of Naval Research.--Section 5022 of title 10, United 
States Code, is amended--
        (1) by striking ``(1)''; and
        (2) by striking paragraph (2).
    (v) Chief of Legislative Affairs of the Navy.--Section 5027(a) of 
title 10, United States Code, is amended by striking the second 
sentence.
    (w) Director for Expeditionary Warfare.--Section 5038 of title 10, 
United States Code, is amended--
        (1) by striking subsection (b); and
        (2) by redesignating subsections (c) and (d) as subsections (b) 
    and (c), respectively.
    (x) SJA to Commandant of the Marine Corps.--Section 5046(a) of 
title 10, United States Code, is amended by striking the last sentence.
    (y) Legislative Assistant to Commandant of the Marine Corps.--
Section 5047 of title 10, United States Code, is amended by striking 
the second sentence.
    (z) Bureau Chiefs of the Navy.--
        (1) In general.--Section 5133 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 513 of such title is amended by striking the item 
    relating to section 5133.
    (aa) Chief of Dental Corps of the Navy.--Section 5138 of title 10, 
United States Code, is amended--
        (1) in subsection (a), by striking ``not below the grade of 
    rear admiral (lower half)''; and
        (2) in subsection (c), by striking the first sentence.
    (bb) Bureau of Naval Personnel.--
        (1) In general.--Section 5141 of title 10, United States Code, 
    is amended--
            (A) in subsection (a), by striking the first sentence; and
            (B) in subsection (b), by striking the first sentence.
        (2) Conforming amendment.--The heading of such section is 
    amended to read as follows:
``Sec. 5141. Chief of Naval Personnel; Deputy Chief of Naval 
    Personnel''.
        (3) Clerical amendment.--The table of sections at the beginning 
    of chapter 513 of such title is amended by striking the item 
    relating to section 5141 and inserting the following new item:

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

    (cc) Chief of Chaplains of the Navy.--Section 5142 of title 10, 
United States Code, is amended by striking subsection (e).
    (dd) Chief of Navy Reserve.--Section 5143(c) of title 10, United 
States Code, is amended--
        (1) in the subsection heading, by striking ``; Grade'';
        (2) by striking ``(1)''; and
        (3) by striking paragraph (2).
    (ee) Commander, Marine Forces Reserve.--Section 5144(c) of title 
10, United States Code, is amended--
        (1) in the subsection heading, by striking ``; Grade'';
        (2) by striking ``(1)''; and
        (3) by striking paragraph (2).
    (ff) Judge Advocate General of the Navy.--Section 5148(b) of title 
10, United States Code, is amended by striking the last sentence.
    (gg) Deputy and Assistant Judge Advocates General of the Navy.--
Section 5149 of title 10, United States Code, is amended--
        (1) in subsection (a)(1)--
            (A) in the first sentence, by striking ``, by and with the 
        advice and consent of the Senate,''; and
            (B) by striking the second sentence; and
        (2) in each of subsections (b) and (c), by striking the second 
    and last sentences.
    (hh) Chiefs of Staff Corps of the Navy.--Section 5150 of title 10, 
United States Code, is amended--
        (1) in subsection (b)(2), by striking ``Subject to subsection 
    (c), the Secretary'' and inserting ``The Secretary''; and
        (2) by striking subsection (c).
    (ii) Principal Military Deputy to Assistant Secretary of the Air 
Force for Acquisition.--Section 8016(b)(4)(B) of title 10, United 
States Code, is amended by striking ``a lieutenant general'' and 
inserting ``an officer''.
    (jj) Chief of Legislative Liaison of the Air Force.--Section 
8023(a) of title 10, United States Code, is amended by striking the 
second sentence.
    (kk) Judge Advocate General and Deputy Judge Advocate General of 
the Air Force.--Section 8037 of title 10, United States Code, is 
amended--
        (1) in subsection (a), by striking the last sentence; and
        (2) in subsection (d)(1), by striking the last sentence.
    (ll) Chief of the Air Force Reserve.--Section 8038(c) of title 10, 
United States Code, is amended--
        (1) in the subsection heading, by striking ``; Grade'';
        (2) by striking ``(1)''; and
        (3) by striking paragraph (2).
    (mm) Chief of Chaplains of the Air Force.--Section 8039 of title 
10, United States Code, is amended--
        (1) in subsection (a)(1)--
            (A) by striking subparagraph (A); and
            (B) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
        (2) by striking subsection (c).
    (nn) Chief of Air Force Nurses.--
        (1) In general.--Section 8069 of title 10, United States Code, 
    is amended--
            (A) in subsection (a)--
                (i) in the subsection heading, by striking ``Positions 
            of Chief and Assistant Chief'' and inserting ``Position of 
            Chief''; and
                (ii) by striking ``and assistant chief'';
            (B) in subsection (b), by striking the second sentence; and
            (C) by striking subsection (c).
        (2) Conforming amendment.--The heading of such section is 
    amended to read as follows:
``Sec. 8069. Air Force nurses: Chief; appointment''.
        (3) Clerical amendment.--The table of sections at the beginning 
    of chapter 807 of such title is amended by striking the item 
    relating to section 8069 and inserting the following new item:

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

    (oo) Assistant Surgeon General for Dental Services of the Air 
Force.--Section 8081 of title 10, United States Code, is amended by 
striking the second sentence.
    (pp) Air Force Aides.--
        (1) In general.--Section 8543 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 843 of such title is amended by striking the item 
    relating to section 8543.
    (qq) Dean of Faculty of the Air Force Academy.--Section 9335(b) of 
title 10, United States Code, is amended by striking the first and 
third sentences.
    (rr) Vice Chief of the National Guard Bureau.--Section 10505(a) of 
title 10, United States Code, is amended--
        (1) in subsection (a)(1)--
            (A) in subparagraph (C), by adding ``and'' at the end;
            (B) in subparagraph (D), by striking ``; and'' at the end 
        and inserting a period; and
            (C) by striking subparagraph (E); and
        (2) by striking subsection (c).
    (ss) Other Senior National Guard Bureau Officers.--Section 
10506(a)(1) of title 10, United States Code, is amended in each of 
subparagraphs (A) and (B)--
        (1) by striking ``general''; and
        (2) by striking ``, and shall hold the grade of lieutenant 
    general while so serving,''.
    SEC. 503. NUMBER OF MARINE CORPS GENERAL OFFICERS.
    (a) Distribution of Commissioned Officers on Active Duty in General 
Officer and Flag Officer Grades.--Section 525(a)(4) of title 10, United 
States Code, is amended--
        (1) in subparagraph (B), by striking ``15'' and inserting 
    ``17''; and
        (2) in subparagraph (C), by striking ``23'' and inserting 
    ``22''.
    (b) General and Flag Officers on Active Duty.--Section 526(a)(4) of 
such title is amended by striking ``61'' and inserting ``62''.
    (c) Deputy Commandants.--Section 5045 of such title is amended by 
striking ``six'' and inserting ``seven''.
    SEC. 504. PROMOTION ELIGIBILITY PERIOD FOR OFFICERS WHOSE 
      CONFIRMATION OF APPOINTMENT IS DELAYED DUE TO NONAVAILABILITY TO 
      THE SENATE OF PROBATIVE INFORMATION UNDER CONTROL OF NON-
      DEPARTMENT OF DEFENSE AGENCIES.
    Section 629(c) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (3) as paragraph (4); and
        (2) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) Paragraph (1) does not apply when the Senate is not able to 
obtain information necessary to give its advice and consent to the 
appointment concerned because that information is under the control of 
a department or agency of the Federal Government other than the 
Department of Defense.''.
    SEC. 505. CONTINUATION OF CERTAIN OFFICERS ON ACTIVE DUTY WITHOUT 
      REGARD TO REQUIREMENT FOR RETIREMENT FOR YEARS OF SERVICE.
    (a) Authority for Continuation on Active Duty.--
        (1) In general.--Subchapter IV of chapter 36 of title 10, 
    United States Code, is amended by inserting after section 637 the 
    following new section:
``Sec. 637a. Continuation on active duty: officers in certain military 
    specialties and career tracks
    ``(a) In General.--The Secretary of the military department 
concerned may authorize an officer in a grade above grade O-4 to remain 
on active duty after the date otherwise provided for the retirement of 
the officer in section 633, 634, 635, or 636 of this title, as 
applicable, if the officer has a military occupational specialty, 
rating, or specialty code in a military specialty designated pursuant 
to subsection (b).
    ``(b) Military Specialties.--Each Secretary of a military 
department shall designate the military specialties in which a military 
occupational specialty, rating, or specialty code, as applicable, 
assigned to members of the armed forces under the jurisdiction of such 
Secretary authorizes the members to be eligible for continuation on 
active duty as provided in subsection (a).
    ``(c) Duration of Continuation.--An officer continued on active 
duty pursuant to this section shall, if not earlier retired, be retired 
on the first day of the month after the month in which the officer 
completes 40 years of active service.
    ``(d) Regulations.--The Secretaries of the military departments 
shall carry out this section in accordance with regulations prescribed 
by the Secretary of Defense. The regulations shall specify the criteria 
to be used by the Secretaries of the military departments in 
designating military specialities for purposes of subsection (b).''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of subchapter IV of chapter 36 of title 10, United States Code, is 
    amended by inserting after the item relating to section 637 the 
    following new item:

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

    (b) Conforming Amendments.--The following provisions of title 10, 
United States Code, are amended by inserting ``or 637a'' after 
``637(b)'':
        (1) Section 633(a).
        (2) Section 634(a).
        (3) Section 635.
        (4) Section 636(a).
    SEC. 506. EQUAL CONSIDERATION OF OFFICERS FOR EARLY RETIREMENT OR 
      DISCHARGE.
    Section 638a of title 10, United States Code, is amended--
        (1) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(4) Convening selection boards under section 611(b) of this 
    title to consider for early retirement or discharge regular 
    officers on the active-duty list in a grade below lieutenant 
    colonel or commander--
            ``(A) who have served at least one year of active duty in 
        the grade currently held; and
            ``(B) whose names are not on a list of officers recommended 
        for promotion.'';
        (2) by redesignating subsection (e) as subsection (f); and
        (3) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e)(1) In the case of action under subsection (b)(4), the 
Secretary of the military department concerned shall specify the total 
number of officers described in that subsection that a selection board 
convened under section 611(b) of this title pursuant to the authority 
of that subsection may recommend for early retirement or discharge. 
Officers who are eligible, or are within two years of becoming 
eligible, to be retired under any provision of law (other than by 
reason of eligibility pursuant to section 4403 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484)), if 
selected by the board, shall be retired or retained until becoming 
eligible to retire under section 3911, 6323, or 8911 of this title, and 
those officers who are otherwise ineligible to retire under any 
provision of law shall, if selected by the board, be discharged.
    ``(2) In the case of action under subsection (b)(4), the Secretary 
of the military department concerned may submit to a selection board 
convened pursuant to that subsection--
        ``(A) the names of all eligible officers described in that 
    subsection, whether or not they are eligible to be retired under 
    any provision of law, in a particular grade and competitive 
    category; or
        ``(B) the names of all eligible officers described in that 
    subsection in a particular grade and competitive category, whether 
    or not they are eligible to be retired under any provision of law, 
    who are also in particular year groups, specialties, or retirement 
    categories, or any combination thereof, with that competitive 
    category.
    ``(3) The number of officers specified under paragraph (1) may not 
be more than 30 percent of the number of officers considered.
    ``(4) An officer who is recommended for discharge by a selection 
board convened pursuant to the authority of subsection (b)(4) and whose 
discharge is approved by the Secretary concerned shall be discharged on 
a date specified by the Secretary concerned.
    ``(5) Selection of officers for discharge under this subsection 
shall be based on the needs of the service.''.
    SEC. 507. MODIFICATION OF AUTHORITY TO DROP FROM ROLLS A 
      COMMISSIONED OFFICER.
    Section 1161(b) of title 10, United States Code, is amended by 
inserting ``or the Secretary of Defense, or in the case of a 
commissioned officer of the Coast Guard, the Secretary of the 
department in which the Coast Guard is operating when it is not 
operating in the Navy,'' after ``President''.
    SEC. 508. EXTENSION OF FORCE MANAGEMENT AUTHORITIES ALLOWING 
      ENHANCED FLEXIBILITY FOR OFFICER PERSONNEL MANAGEMENT.
    (a) Temporary Early Retirement Authority.--Section 4403(i) of the 
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 
note) is amended by striking ``December 31, 2018'' and inserting 
``December 31, 2025''.
    (b) Continuation on Active Duty.--Section 638a(a)(2) of title 10, 
United States Code, is amended by striking ``December 31, 2018'' and 
inserting ``December 31, 2025''.
    (c) Voluntary Separation Pay.--Section 1175a(k)(1) of such title is 
amended by striking ``December 31, 2018'' and inserting ``December 31, 
2025''.
    (d) Service-in-Grade Waivers.--Section 1370(a)(2)(F) of such title 
is amended by striking ``2018'' and inserting ``2025''.
    SEC. 509. PILOT PROGRAMS ON DIRECT COMMISSIONS TO CYBER POSITIONS.
    (a) Pilot Programs Authorized.--Each Secretary of a military 
department may carry out a pilot program to improve the ability of an 
Armed Force under the jurisdiction of the Secretary to recruit cyber 
professionals.
    (b) Elements.--Under a pilot program established under this 
section, an individual who meets educational, physical, and other 
requirements determined appropriate by the Secretary of the military 
department concerned may receive an original appointment as a 
commissioned officer in a cyber specialty.
    (c) Consultation.--In developing a pilot program for the Army or 
the Air Force under this section, the Secretary of the Army and the 
Secretary of the Air Force may consult with the Secretary of the Navy 
with respect to an existing, similar program carried out by the 
Secretary of the Navy.
    (d) Duration.--
        (1) Commencement.--The Secretary of a military department may 
    commence a pilot program under this section on or after January 1, 
    2017.
        (2) Termination.--All pilot programs under this section shall 
    terminate no later than December 31, 2022.
    (e) Status Report.--Not later than January 1, 2020, each Secretary 
of a military department who conducts a pilot program under this 
section shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report containing an evaluation of 
the success of the program in obtaining skilled cyber personnel for the 
Armed Forces.
    SEC. 510. LENGTH OF JOINT DUTY ASSIGNMENTS.
    (a) In General.--Subsection (a) of section 664 of title 10, United 
States Code, is amended by striking ``assignment--'' and all that 
follows and inserting ``assignment shall be not less than two years.''.
    (b) Repeal of Authority for Shorter Length for Officers Initially 
Assigned to Critical Occupational Specialties.--Such section is further 
amended by striking subsection (c).
    (c) Exclusions From Tour Length.--Subsection (d) of such section is 
amended--
        (1) in the matter preceding paragraph (1), by striking ``the 
    standards prescribed in subsection (a)'' and inserting ``the 
    requirement in subsection (a)'';
        (2) in paragraph (1)(D), by striking ``assignment--'' and all 
    that follows and inserting ``assignment as prescribed by the 
    Secretary of Defense in regulations.'';
        (3) by striking paragraph (2);
        (4) by redesignating paragraph (3) as paragraph (2); and
        (5) in paragraph (2), as redesignated by paragraph (4) of this 
    subsection, by striking ``the applicable standard prescribed in 
    subsection (a)'' and inserting ``the requirement in subsection 
    (a)''.
    (d) Repeal of Average Tour Length Requirements.--Such section is 
further amended by striking subsection (e).
    (e) Full Tour of Duty.--Subsection (f) of such section is amended--
        (1) in paragraph (1), by striking ``standards prescribed in 
    subsection (a)'' and inserting ``the requirement in subsection 
    (a)'';
        (2) by striking paragraphs (2) and (4);
        (3) by redesignating paragraphs (3), (5), and (6) as paragraphs 
    (2), (3), and (4), respectively; and
        (4) in paragraph (4), as redesignated by paragraph (3) of this 
    subsection, by striking ``, but not less than two years''.
    (f) Constructive Credit.--Subsection (h) of such section is 
amended--
        (1) by striking ``(1)'';
        (2) by striking ``accord'' and inserting ``award''; and
        (3) by striking paragraph (2).
    (g) Conforming Amendments.--Such section is further amended--
        (1) by redesignating subsections (d), (f), (g), and (h), as 
    amended by this section, as subsections (c), (d), (e), and (f), 
    respectively;
        (2) in paragraph (2) of subsection (c), as so redesignated and 
    amended, by striking ``subsection (f)(3)'' and inserting 
    ``subsection (d)(2)''.
        (3) paragraph (2) of subsection (d), as so redesignated and 
    amended, by striking ``subsection (g)'' and inserting ``subsection 
    (e)'';
        (4) in subsection (e), as so redesignated and amended, by 
    striking ``subsection (f)(3)'' and inserting ``subsection (d)(2)''; 
    and
        (5) in subsection (f), as so redesignated and amended, by 
    striking ``paragraphs (1), (2), and (4) of subsection (f)'' and 
    inserting ``subsection (d)(1)''.
SEC. 510A. REVISION OF DEFINITIONS USED FOR JOINT OFFICER MANAGEMENT.
    (a) Definition of Joint Matters.--Paragraph (1) of section 668(a) 
of title 10, United States Code, is amended to read as follows:
    ``(1) In this chapter, the term `joint matters' means matters 
related to any of the following:
        ``(A) The development or achievement of strategic objectives 
    through the synchronization, coordination, and organization of 
    integrated forces in operations conducted across domains, such as 
    land, sea, or air, in space, or in the information environment, 
    including matters relating to any of the following:
            ``(i) National military strategy.
            ``(ii) Strategic planning and contingency planning.
            ``(iii) Command and control, intelligence, fires, movement 
        and maneuver, protection or sustainment of operations under 
        unified command.
            ``(iv) National security planning with other departments 
        and agencies of the United States.
            ``(v) Combined operations with military forces of allied 
        nations.
        ``(B) Acquisition matters conducted by members of the armed 
    forces and covered under chapter 87 of this title involved in 
    developing, testing, contracting, producing, or fielding of multi-
    service programs or systems.
        ``(C) Other matters designated in regulation by the Secretary 
    of Defense in consultation with the Chairman of the Joint Chiefs of 
    Staff.''.
    (b) Definition of Integrated Forces.--Section 668(a)(2) of title 
10, United States Code, is amended in the matter preceding subparagraph 
(A)--
        (1) by striking ``integrated military forces'' and inserting 
    ``integrated forces''; and
        (2) by striking ``the planning or execution (or both) of 
    operations involving'' and inserting ``achieving unified action 
    with''.
    (c) Definition of Joint Duty Assignment.--Section 668(b)(1) of 
title 10, United States Code, is amended by striking subparagraph (A) 
and inserting the following new subparagraph:
        ``(A) shall be limited to assignments in which--
            ``(i) the preponderance of the duties of the officer 
        involve joint matters and
            ``(ii) the officer gains significant experience in joint 
        matters; and''.
    (d) Repeal of Definition of Critical Occupational Speciality.--
Section 668 of title 10, United States Code, is amended by striking 
subsection (d).

                Subtitle B--Reserve Component Management

    SEC. 511. AUTHORITY FOR TEMPORARY WAIVER OF LIMITATION ON TERM OF 
      SERVICE OF VICE CHIEF OF THE NATIONAL GUARD BUREAU.
    Section 10505(a)(4) of title 10, United States Code, is amended by 
striking ``paragraph (3)(B) for a limited period of time'' and 
inserting ``paragraph (3) for not more than 90 days''.
    SEC. 512. RIGHTS AND PROTECTIONS AVAILABLE TO MILITARY TECHNICIANS.
    (a) In General.--Section 709 of title 32, United States Code, is 
amended--
        (1) in subsection (f)--
            (A) in paragraph (4), by striking ``; and'' and inserting 
        ``when the appeal concerns activity occurring while the member 
        is in a military pay status, or concerns fitness for duty in 
        the reserve components;'';
            (B) by redesignating paragraph (5) as paragraph (6); and
            (C) by inserting after paragraph (4) the following new 
        paragraph (5):
        ``(5) with respect to an appeal concerning any activity not 
    covered by paragraph (4), the provisions of sections 7511, 7512, 
    and 7513 of title 5, and section 717 of the Civil Rights Act of 
    1991 (42 U.S.C. 2000e-16) shall apply; and''; and
        (2) in subsection (g), by striking ``Sections'' and inserting 
    ``Except as provided in subsection (f), sections''.
    (b) Definitions.--Section 709 of title 32, United States Code, is 
further amended by adding at the end the following new subsection:
    ``(j) In this section:
        ``(1) The term `military pay status' means a period of service 
    where the amount of pay payable to a technician for that service is 
    based on rates of military pay provided for under title 37.
        ``(2) The term `fitness for duty in the reserve components' 
    refers only to military-unique service requirements that attend to 
    military service generally, including service in the reserve 
    components or service on active duty.''.
    (c) Conforming Amendment.--Section 7511(b) of title 5, United 
States Code, is amended by striking paragraph (5).
    SEC. 513. INAPPLICABILITY OF CERTAIN LAWS TO NATIONAL GUARD 
      TECHNICIANS PERFORMING ACTIVE GUARD AND RESERVE DUTY.
    Section 709(g) of title 32, United States Code, as amended by 
section 512(a)(2), is further amended--
        (1) by inserting ``(1)'' after ``(g)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) In addition to the sections referred to in paragraph (1), 
section 6323(a)(1) of title 5 also does not apply to a person employed 
under this section who is performing active Guard and Reserve duty (as 
that term is defined in section 101(d)(6) of title 10).''.
    SEC. 514. EXTENSION OF REMOVAL OF RESTRICTIONS ON THE TRANSFER OF 
      OFFICERS BETWEEN THE ACTIVE AND INACTIVE NATIONAL GUARD.
    Section 512 of the National Defense Authorization Act for Fiscal 
Year 2014 (Public Law 113-66; 127 Stat. 752; 32 U.S.C. prec. 301 note) 
is amended--
        (1) in subsection (a) in the matter preceding paragraph (1), by 
    striking ``December 31, 2016'' and inserting ``December 31, 2019''; 
    and
        (2) in subsection (b) in the matter preceding paragraph (1), by 
    striking ``December 31, 2016'' and inserting ``December 31, 2019''.
    SEC. 515. EXTENSION OF TEMPORARY AUTHORITY TO USE AIR FORCE RESERVE 
      COMPONENT PERSONNEL TO PROVIDE TRAINING AND INSTRUCTION REGARDING 
      PILOT TRAINING.
    Section 514(a)(1) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114-92; 129 Stat. 810) is amended by 
inserting ``and fiscal year 2017'' after ``During fiscal year 2016''.
    SEC. 516. EXPANSION OF ELIGIBILITY FOR DEPUTY COMMANDER OF 
      COMBATANT COMMAND HAVING UNITED STATES AMONG GEOGRAPHIC AREA OF 
      RESPONSIBILITY TO INCLUDE OFFICERS OF THE RESERVES.
    Section 164(e)(4) of title 10, United States Code, is amended--
        (1) by striking ``the National Guard'' and inserting ``a 
    reserve component of the armed forces''; and
        (2) by striking ``a National Guard officer'' and inserting ``a 
    reserve component officer''.

                Subtitle C--General Service Authorities

    SEC. 521. MATTERS RELATING TO PROVISION OF LEAVE FOR MEMBERS OF THE 
      ARMED FORCES, INCLUDING PROHIBITION ON LEAVE NOT EXPRESSLY 
      AUTHORIZED BY LAW.
    (a) Primary and Secondary Caregiver Leave.--Section 701 of title 
10, United States Code, is amended--
        (1) by striking subsections (i) and (j); and
        (2) by inserting after subsection (h) the following new 
    subsections (i) and (j):
    ``(i)(1)(A) Under regulations prescribed by the Secretary of 
Defense, a member of the armed forces described in paragraph (2) who is 
the primary caregiver in the case of the birth of a child is allowed up 
to twelve weeks of total leave, including up to six weeks of medical 
convalescent leave, to be used in connection with such birth.
    ``(B) Under the regulations prescribed for purposes of this 
subsection, a member of the armed forces described in paragraph (2) who 
is the primary caregiver in the case of the adoption of a child is 
allowed up to six weeks of total leave to be used in connection with 
such adoption.
    ``(2) Paragraph (1) applies to the following members:
        ``(A) A member on active duty.
        ``(B) A member of a reserve component performing active Guard 
    and Reserve duty.
        ``(C) A member of a reserve component subject to an active duty 
    recall or mobilization order in excess of 12 months.
    ``(3) The Secretary shall prescribe in the regulations referred to 
in paragraph (1) a definition of the term `primary caregiver' for 
purposes of this subsection.
    ``(4) Notwithstanding paragraph (1)(A), a member may receive more 
than six weeks of medical convalescent leave in connection with the 
birth of a child, but only if the additional medical convalescent 
leave--
        ``(A) is specifically recommended, in writing, by the medical 
    provider of the member to address a diagnosed medical condition; 
    and
        ``(B) is approved by the commander of the member.
    ``(5) Any leave taken by a member under this subsection, including 
leave under paragraphs (1) and (4), may be taken only in one increment 
in connection with such birth or adoption.
    ``(6)(A) Any leave authorized by this subsection that is not taken 
within one year of such birth or adoption shall be forfeited.
    ``(B) Any leave authorized by this subsection for a member of a 
reserve component on active duty that is not taken by the time the 
member is separated from active duty shall be forfeited at that time.
    ``(7) The period of active duty of a member of a reserve component 
may not be extended in order to permit the member to take leave 
authorized by this subsection.
    ``(8) Under the regulations prescribed for purposes of this 
subsection, a member taking leave under paragraph (1) may, as a 
condition for taking such leave, be required--
        ``(A) to accept an extension of the member's current service 
    obligation, if any, by one week for every week of leave taken under 
    paragraph (1); or
        ``(B) to incur a reduction in the member's leave account by one 
    week for every week of leave taken under paragraph (1).
    ``(9)(A) Leave authorized by this subsection is in addition to any 
other leave provided under other provisions of this section.
    ``(B) Medical convalescent leave under paragraph (4) is in addition 
to any other leave provided under other provisions of this subsection.
    ``(10)(A) Subject to subparagraph (B), a member taking leave under 
paragraph (1) during a period of obligated service shall not be 
eligible for terminal leave, or to sell back leave, at the end such 
period of obligated service.
    ``(B) Under the regulations for purposes of this subsection, the 
Secretary concerned may waive, whether in whole or in part, the 
applicability of subparagraph (A) to a member who reenlists at the end 
of the member's period of obligated service described in that 
subparagraph if the Secretary determines that the waiver is in the 
interests of the armed force concerned.
    ``(j)(1) Under regulations prescribed by the Secretary of Defense, 
a member of the armed forces described in subsection (i)(2) who is the 
secondary caregiver in the case of the birth of a child or the adoption 
of a child is allowed up to 21 days of leave to be used in connection 
with such birth or adoption.
    ``(2) The Secretary shall prescribe in the regulations referred to 
in paragraph (1) a definition of the term `secondary caregiver' for 
purposes of this subsection.
    ``(3) Any leave taken by a member under this subsection may be 
taken only in one increment in connection with such birth or adoption.
    ``(4) Under the regulations prescribed for purposes of this 
subsection, paragraphs (6) through (10) of subsection (i) (other than 
paragraph (9)(B) of such subsection) shall apply to leave, and the 
taking of leave, authorized by this subsection.''.
    (b) Prohibition on Leave Not Expressly Authorized by Law.--
        (1) Prohibition.--Chapter 40 of title 10, United States Code, 
    is amended by inserting after section 704 the following new 
    section:
``Sec. 704a. Administration of leave: prohibition on authorizing, 
    granting, or assigning leave not expressly authorized by law
    ``No member or category of members of the armed forces may be 
authorized, granted, or assigned leave, including uncharged leave, not 
expressly authorized by a provision of this chapter or another statute 
unless expressly authorized by an Act of Congress enacted after the 
date of the enactment of the National Defense Authorization Act for 
Fiscal Year 2017.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 40 of title 10, United States Code, is amended by 
    inserting after the item relating to section 704 the following new 
    item:

``704a. Administration of leave: prohibition on authorizing, granting, 
          or assigning leave not expressly authorized by law.''.
    SEC. 522. TRANSFER OF PROVISION RELATING TO EXPENSES INCURRED IN 
      CONNECTION WITH LEAVE CANCELED DUE TO CONTINGENCY OPERATIONS.
    (a) Enactment in Title 10, United States Code, of Authority for 
Reimbursement of Expenses.--Chapter 40 of title 10, United States Code, 
is amended by inserting after section 709 the following new section:
``Sec. 709a. Expenses incurred in connection with leave canceled due to 
    contingency operations: reimbursement
    ``(a) Authorization To Reimburse.--The Secretary concerned may 
reimburse a member of the armed forces under the jurisdiction of the 
Secretary for travel and related expenses (to the extent not otherwise 
reimbursable under law) incurred by the member as a result of the 
cancellation of previously approved leave when--
        ``(1) the leave is canceled in connection with the member's 
    participation in a contingency operation; and
        ``(2) the cancellation occurs within 48 hours of the time the 
    leave would have commenced.
    ``(b) Regulations.--The Secretary of Defense and, in the case of 
the Coast Guard when it is not operating as a service in the Navy, the 
Secretary of Homeland Security shall prescribe regulations to establish 
the criteria for the applicability of subsection (a).
    ``(c) Conclusiveness of Settlement.--The settlement of an 
application for reimbursement under subsection (a) is final and 
conclusive.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 40 of such title is amended by inserting after the item 
relating to section 709 the following new item:

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

    (c) Repeal of Superseded Authority.--Section 453 of title 37, 
United States Code, is amended by striking subsection (g).
    SEC. 523. EXPANSION OF AUTHORITY TO EXECUTE CERTAIN MILITARY 
      INSTRUMENTS.
    (a) Expansion of Authority To Execute Military Testamentary 
Instruments.--Section 1044d(c) of title 10, United States Code, is 
amended--
        (1) by striking paragraph (2) and inserting the following:
        ``(2) the execution of the instrument is notarized by--
            ``(A) a military legal assistance counsel;
            ``(B) a person who is authorized to act as a notary under 
        section 1044a of this title who--
                ``(i) is not an attorney; and
                ``(ii) is supervised by a military legal assistance 
            counsel; or
            ``(C) a State-licensed notary employed by a military 
        department or the Coast Guard who is supervised by a military 
        legal assistance counsel;''; and
        (2) in paragraph (3), by striking ``presiding attorney'' and 
    inserting ``person notarizing the instrument in accordance with 
    paragraph (2)''.
    (b) Expansion of Authority To Notarize Documents to Civilians 
Serving in Military Legal Assistance Offices.--Section 1044a(b) of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
        ``(6) All civilian paralegals serving at military legal 
    assistance offices, supervised by a military legal assistance 
    counsel (as defined in section 1044d(g) of this title).''.
    SEC. 524. MEDICAL EXAMINATION BEFORE ADMINISTRATIVE SEPARATION FOR 
      MEMBERS WITH POST-TRAUMATIC STRESS DISORDER OR TRAUMATIC BRAIN 
      INJURY IN CONNECTION WITH SEXUAL ASSAULT.
    Section 1177(a)(1) of title 10, United States Code, is amended--
        (1) by inserting ``, or sexually assaulted,'' after ``deployed 
    overseas in support of a contingency operation''; and
        (2) by inserting ``or based on such sexual assault,'' after 
    ``while deployed,''.
    SEC. 525. REDUCTION OF TENURE ON THE TEMPORARY DISABILITY RETIRED 
      LIST.
    (a) Reduction of Tenure.--Section 1210 of title 10, United States 
Code, is amended--
        (1) in subsection (b), by striking ``five years'' and inserting 
    ``three years''; and
        (2) in subsection (h), by striking ``five years'' and inserting 
    ``three years''.
    (b) Applicability.--The amendments made by subsection (a) shall 
take effect on January 1, 2017, and shall apply to members of the Armed 
Forces whose names are placed on the temporary disability retired list 
on or after that date.
    SEC. 526. TECHNICAL CORRECTION TO VOLUNTARY SEPARATION PAY AND 
      BENEFITS.
    Section 1175a(j) of title 10, United States Code, is amended--
        (1) in paragraph (2)--
            (A) by striking ``or 12304'' and inserting ``12304, 12304a, 
        or 12304b''; and
            (B) by striking ``502(f)(1)'' and inserting 
        ``502(f)(1)(A)''; and
        (2) in paragraph (3), by striking ``502(f)(2)'' and inserting 
    ``502(f)(1)(B)''.
    SEC. 527. CONSOLIDATION OF ARMY MARKETING AND PILOT PROGRAM ON 
      CONSOLIDATED ARMY RECRUITING.
    (a) Consolidation of Army Marketing.--Not later than October 1, 
2017, the Secretary of the Army shall consolidate into a single 
organization within the Department of the Army all functions relating 
to the marketing of the Army and each of the components of the Army in 
order to assure unity of effort and cost effectiveness in the marketing 
of the Army and each of the components of the Army.
    (b) Pilot Program on Consolidated Army Recruiting.--
        (1) Pilot program required.--Not later than 180 days after the 
    date of the enactment of this Act, the Secretary of the Army shall 
    carry out a pilot program to consolidate the recruiting efforts of 
    the Regular Army, Army Reserve, and Army National Guard under which 
    a recruiter in one of the components participating in the pilot 
    program may recruit individuals to enlist in any of the components 
    regardless of the funding source of the recruiting activity.
        (2) Credit toward enlistment goals.--Under the pilot program, a 
    recruiter shall receive credit toward periodic enlistment goals for 
    each enlistment regardless of the component in which the individual 
    enlists.
        (3) Duration.--The Secretary shall carry out the pilot program 
    for a period of not less than three years.
    (c) Briefing and Reports.--
        (1) Briefing on consolidation plan.--Not later than March 1, 
    2017, the Secretary of the Army shall provide to the Committees on 
    Armed Services of the Senate and the House of Representatives a 
    briefing on the Secretary's plan to carry out the Army marketing 
    consolidation required by subsection (a).
        (2) Interim report on pilot program.--
            (A) In general.--Not later than one year after the date on 
        which the pilot program under subsection (b) commences, the 
        Secretary shall submit to the congressional committees 
        specified in paragraph (1) a report on the pilot program.
            (B) Elements.--The report under subparagraph (A) shall 
        include each of the following:
                (i) An analysis of the effects that consolidated 
            recruiting efforts has on the overall ability of recruiters 
            to attract and place qualified candidates.
                (ii) A determination of the extent to which 
            consolidating recruiting efforts affects efficiency and 
            recruiting costs.
                (iii) An analysis of any challenges associated with a 
            recruiter working to recruit individuals to enlist in a 
            component in which the recruiter has not served.
                (iv) An analysis of the satisfaction of recruiters and 
            the component recruiting commands with the pilot program.
        (3) Final report on pilot program.--Not later than 180 days 
    after the date on which the pilot program is completed, the 
    Secretary shall submit to the congressional committees specified in 
    paragraph (1) a final report on the pilot program. The final report 
    shall include any recommendations of the Secretary with respect to 
    extending or making permanent the pilot program and a description 
    of any related legislative actions that the Secretary considers 
    appropriate.

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

    SEC. 531. IMPROVEMENTS TO WHISTLEBLOWER PROTECTION PROCEDURES.
    (a) Actions Treatable as Prohibited Personnel Actions.--Paragraph 
(2) of section 1034(b) of title 10, United States Code, is amended to 
read as follows:
    ``(2)(A) The actions considered for purposes of this section to be 
a personnel action prohibited by this subsection shall include any 
action prohibited by paragraph (1), including any of the following:
        ``(i) The threat to take any unfavorable action.
        ``(ii) The withholding, or threat to withhold, any favorable 
    action.
        ``(iii) The making of, or threat to make, a significant change 
    in the duties or responsibilities of a member of the armed forces 
    not commensurate with the member's grade.
        ``(iv) The failure of a superior to respond to any retaliatory 
    action or harassment (of which the superior had actual knowledge) 
    taken by one or more subordinates against a member.
        ``(v) The conducting of a retaliatory investigation of a 
    member.
    ``(B) In this paragraph, the term `retaliatory investigation' means 
an investigation requested, directed, initiated, or conducted for the 
primary purpose of punishing, harassing, or ostracizing a member of the 
armed forces for making a protected communication.
    ``(C) Nothing in this paragraph shall be construed to limit the 
ability of a commander to consult with a superior in the chain of 
command, an inspector general, or a judge advocate general on the 
disposition of a complaint against a member of the armed forces for an 
allegation of collateral misconduct or for a matter unrelated to a 
protected communication. Such consultation shall provide an affirmative 
defense against an allegation that a member requested, directed, 
initiated, or conducted a retaliatory investigation under this 
section.''.
    (b) Action in Response to Hardship in Connection With Personnel 
Actions.--Section 1034 of title 10, United States Code, is amended--
        (1) in subsection (c)(4)--
            (A) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (B) by inserting after subparagraph (D) the following new 
        subparagraph (E):
    ``(E) If the Inspector General makes a preliminary determination in 
an investigation under subparagraph (D) that, more likely than not, a 
personnel action prohibited by subsection (b) has occurred and the 
personnel action will result in an immediate hardship to the member 
alleging the personnel action, the Inspector General shall promptly 
notify the Secretary of the military department concerned or the 
Secretary of Homeland Security, as applicable, of the hardship, and 
such Secretary shall take such action as such Secretary considers 
appropriate.''; and
        (2) in subsection (e)(1), by striking ``subsection (c)(4)(E)'' 
    and inserting ``subsection (c)(4)(F)''.
    (c) Periodic Notice to Members on Progress of Inspector General 
Investigations.--Paragraph (3) of section 1034(e) of title 10, United 
States Code, is amended to read as follows:
    ``(3)(A) Not later than 180 days after the commencement of an 
investigation of an allegation under subsection (c)(4), and every 180 
days thereafter until the transmission of the report on the 
investigation under paragraph (1) to the member concerned, the 
Inspector General conducting the investigation shall submit a notice on 
the investigation described in subparagraph (B) to the following:
        ``(i) The member.
        ``(ii) The Secretary of Defense.
        ``(iii) The Secretary of the military department concerned, or 
    the Secretary of Homeland Security in the case of a member of the 
    Coast Guard when the Coast Guard is not operating as a service in 
    the Navy.
    ``(B) Each notice on an investigation under subparagraph (A) shall 
include the following:
        ``(i) A description of the current progress of the 
    investigation.
        ``(ii) An estimate of the time remaining until the completion 
    of the investigation and the transmittal of the report required by 
    paragraph (1) to the member concerned.''.
    (d) Correction of Records.--Paragraph (2) of section 1034(g) of 
title 10, United States Code, is amended to read as follows:
    ``(2) In resolving an application described in paragraph (1) for 
which there is a report of the Inspector General under subsection 
(e)(1), a correction board--
        ``(A) shall review the report of the Inspector General;
        ``(B) may request the Inspector General to gather further 
    evidence;
        ``(C) may receive oral argument, examine and cross-examine 
    witnesses, and take depositions; and
        ``(D) shall consider a request by a member or former member in 
    determining whether to hold an evidentiary hearing.''.
    (e) Uniform Standards for Inspector General Investigations of 
Prohibited Personnel Actions and Other Matters.--
        (1) In general.--Not later than one year after the date of the 
    enactment of this Act, the Inspector General of the Department of 
    Defense shall prescribe uniform standards for the following:
            (A) The investigation of allegations of prohibited 
        personnel actions under section 1034 of title 10, United States 
        Code (as amended by this section), by the Inspector General and 
        the Inspectors General of the military departments.
            (B) The training of the staffs of the Inspectors General 
        referred to in subparagraph (A) on the conduct of 
        investigations described in that subparagraph.
        (2) Use.--Commencing 180 days after prescription of the 
    standards required by paragraph (1), the Inspectors General 
    referred to in that paragraph shall comply with such standards in 
    the conduct of investigations described in that paragraph and in 
    the training of the staffs of such Inspectors General in the 
    conduct of such investigations.
    SEC. 532. MODIFICATION OF WHISTLEBLOWER PROTECTION AUTHORITIES TO 
      RESTRICT CONTRARY FINDINGS OF PROHIBITED PERSONNEL ACTION BY THE 
      SECRETARY CONCERNED.
    (a) In General.--Section 1034(f) of title 10, United States Code, 
is amended--
        (1) in the subsection heading, by striking ``Violations'' and 
    inserting ``Substantiated Violations''; and
        (2) in paragraph (1), by striking ``there is sufficient basis'' 
    and all that follows and inserting ``corrective or disciplinary 
    action should be taken. If the Secretary concerned determines that 
    corrective or disciplinary action should be taken, the Secretary 
    shall take appropriate corrective or disciplinary action.''.
    (b) Actions Following Determinations.--Paragraph (2) of such 
section is amended--
        (1) in the matter preceding subparagraph (A)--
            (A) by striking ``the Secretary concerned determines under 
        paragraph (1)'' and inserting ``the Inspector General 
        determines''; and
            (B) by striking ``the Secretary shall'' and inserting ``the 
        Secretary concerned shall'';
        (2) in subparagraph (A), by inserting ``, including referring 
    the report to the appropriate board for the correction of military 
    records'' before the semicolon; and
        (3) by striking subparagraph (B) and inserting the following 
    new subparagraph (B):
        ``(B) submit to the Inspector General a report on the actions 
    taken by the Secretary pursuant to this paragraph, and provide for 
    the inclusion of a summary of the report under this subparagraph 
    (with any personally identifiable information redacted) in the 
    semiannual report to Congress of the Inspector General of the 
    Department of Defense or the Inspector General of the Department of 
    Homeland Security, as applicable, under section 5 of the Inspector 
    General Act of 1978 (5 U.S.C. App.).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to reports received by the Secretaries of the military 
departments and the Secretary of Homeland Security under section 
1034(e) of title 10, United States Code, on or after that date.
    SEC. 533. AVAILABILITY OF CERTAIN CORRECTION OF MILITARY RECORDS 
      AND DISCHARGE REVIEW BOARD INFORMATION THROUGH THE INTERNET.
    (a) Board for the Correction of Military Records.--Section 1552 of 
title 10, United States Code, is amended--
        (1) by redesignating subsection (h) as subsection (i); and
        (2) by inserting after subsection (g) the following new 
    subsection (h):
    ``(h) Each board established under this section shall make 
available to the public each calender quarter, on an Internet website 
of the military department concerned or the Department of Homeland 
Security, as applicable, that is available to the public the following:
        ``(1) The number of claims considered by such board during the 
    calendar quarter preceding the calender quarter in which such 
    information is made available, including cases in which a mental 
    health condition of the claimant, including post-traumatic stress 
    disorder or traumatic brain injury, is alleged to have contributed, 
    whether in whole or part, to the original characterization of the 
    discharge or release of the claimant.
        ``(2) The number of claims submitted during the calendar 
    quarter preceding the calender quarter in which such information is 
    made available that relate to service by a claimant during a war or 
    contingency operation, catalogued by each war or contingency 
    operation.
        ``(3) The number of military records corrected pursuant to the 
    consideration described in paragraph (1) to upgrade the 
    characterization of discharge or release of claimants.''.
    (b) Discharge Review Board.--Section 1553 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) Each board established under this section shall make 
available to the public each calender quarter, on an Internet website 
of the military department concerned or the Department of Homeland 
Security, as applicable, that is available to the public the following:
        ``(1) The number of motions or requests for review considered 
    by such board during the calendar quarter preceding the calender 
    quarter in which such information is made available, including 
    cases in which a mental health condition of the former member, 
    including post-traumatic stress disorder or traumatic brain injury, 
    is alleged to have contributed, whether in whole or part, to the 
    original characterization of the discharge or dismissal of the 
    former member.
        ``(2) The number of claims submitted during the calendar 
    quarter preceding the calender quarter in which such information is 
    made available that relate to service by a claimant during a war or 
    contingency operation, catalogued by each war or contingency 
    operation.
        ``(3) The number of discharges or dismissals corrected pursuant 
    to the consideration described in paragraph (1) to upgrade the 
    characterization of discharge or dismissal of former members.''.
    SEC. 534. IMPROVEMENTS TO AUTHORITIES AND PROCEDURES FOR THE 
      CORRECTION OF MILITARY RECORDS.
    (a) Procedures of Boards.--Paragraph (3) of section 1552(a) of 
title 10, United States Code, is amended--
        (1) by inserting ``(A)'' after ``(3)''; and
        (2) by adding at the end the following new subparagraphs:
    ``(B) If a board makes a preliminary determination that a claim 
under this section lacks sufficient information or documents to support 
the claim, the board shall notify the claimant, in writing, indicating 
the specific information or documents necessary to make the claim 
complete and reviewable by the board.
    ``(C) If a claimant is unable to provide military personnel or 
medical records applicable to a claim under this section, the board 
shall make reasonable efforts to obtain the records. A claimant shall 
provide the board with documentary evidence of the efforts of the 
claimant to obtain such records. The board shall inform the claimant of 
the results of the board's efforts, and shall provide the claimant 
copies of any records so obtained upon request of the claimant.
    ``(D) Any request for reconsideration of a determination of a board 
under this section, no matter when filed, shall be reconsidered by a 
board under this section if supported by materials not previously 
presented to or considered by the board in making such 
determination.''.
    (b) Publication of Final Decisions of Boards.--Such section is 
further amended by adding at the end the following new paragraph:
    ``(5) Each final decision of a board under this subsection shall be 
made available to the public in electronic form on a centralized 
Internet website. In any decision so made available to the public there 
shall be redacted all personally identifiable information.''.
    (c) Training of Members of Boards.--
        (1) In general.--Not later than one year after the date of the 
    enactment of this Act, each Secretary concerned shall develop and 
    implement a comprehensive training curriculum for members of boards 
    for the correction of military records under the jurisdiction of 
    such Secretary in the duties of such boards under section 1552 of 
    title 10, United States Code. The curriculum shall address all 
    areas of administrative law applicable to the duties of such 
    boards.
        (2) Uniform curricula.--The Secretary of Defense and the 
    Secretary of Homeland Security shall jointly ensure that the 
    curricula developed and implemented pursuant to this subsection 
    are, to the extent practicable, uniform.
        (3) Training.--
            (A) In general.--Each member of a board for the correction 
        of military records shall undergo retraining (consistent with 
        the curriculum developed and implemented pursuant to this 
        subsection) regarding the duties of boards for the correction 
        of military records under section 1552 of title 10, United 
        States Code, at least once every five years during the member's 
        tenure on the board.
            (B) Current members.--Each member of a board for the 
        correction of military records as of the date of the 
        implementation of the curriculum required by paragraph (1) (in 
        this paragraph referred to as the ``curriculum implementation 
        date'') shall undergo training described in subparagraph (A) 
        not later than 90 days after the curriculum implementation 
        date.
            (C) New members.--Each individual who becomes a member of a 
        board for the correction of military records after the 
        curriculum implementation date shall undergo training described 
        in subparagraph (A) by not later than 90 days after the date on 
        which such individual becomes a member of the board.
        (4) Reports.--Not later than 18 months after the date of the 
    enactment of this Act, each Secretary concerned shall submit to 
    Congress a report setting forth the following:
            (A) A description and assessment of the progress made by 
        such Secretary in implementing training requirements for 
        members of boards for the correction of military records under 
        the jurisdiction of such Secretary.
            (B) A detailed description of the training curriculum 
        required of such Secretary by paragraph (1).
            (C) A description and assessment of any impediments to the 
        implementation of training requirements for members of boards 
        for the correction of military records under the jurisdiction 
        of such Secretary.
        (5) Secretary concerned defined.--In this subsection, the term 
    ``Secretary concerned'' means a ``Secretary concerned'' as that 
    term is used in section 1552 of title 10, United States Code.
    SEC. 535. TREATMENT BY DISCHARGE REVIEW BOARDS OF CLAIMS ASSERTING 
      POST-TRAUMATIC STRESS DISORDER OR TRAUMATIC BRAIN INJURY IN 
      CONNECTION WITH COMBAT OR SEXUAL TRAUMA AS A BASIS FOR REVIEW OF 
      DISCHARGE.
    Section 1553(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3)(A) In addition to the requirements of paragraphs (1) and (2), 
in the case of a former member described in subparagraph (B), the Board 
shall--
        ``(i) review medical evidence of the Secretary of Veterans 
    Affairs or a civilian health care provider that is presented by the 
    former member; and
        ``(ii) review the case with liberal consideration to the former 
    member that post-traumatic stress disorder or traumatic brain 
    injury potentially contributed to the circumstances resulting in 
    the discharge of a lesser characterization.
    ``(B) A former member described in this subparagraph is a former 
member described in paragraph (1) or a former member whose application 
for relief is based in whole or in part on matters relating to post-
traumatic stress disorder or traumatic brain injury as supporting 
rationale, or as justification for priority consideration, whose post-
traumatic stress disorder or traumatic brain injury is related to 
combat or military sexual trauma, as determined by the Secretary 
concerned.''.
    SEC. 536. COMPTROLLER GENERAL OF THE UNITED STATES REVIEW OF 
      INTEGRITY OF DEPARTMENT OF DEFENSE WHISTLEBLOWER PROGRAM.
    (a) Report Required.--Not later than 18 months after the date of 
the enactment of this Act, the Comptroller General of the United States 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report setting forth a review of the 
integrity of the Department of Defense whistleblower program.
    (b) Elements.--The review for purposes of the report required by 
subsection (a) shall include the following elements:
        (1) An assessment of the extent to which the Department of 
    Defense whistleblower program meets executive branch policies and 
    goals for whistleblower protections.
        (2) An assessment of the adequacy of procedures to handle and 
    address complaints submitted by employees in the Office of the 
    Inspector General of the Department of Defense to ensure that such 
    employees themselves are able to disclose a suspected violation of 
    law, rule, or regulation without fear of reprisal.
        (3) An assessment of the extent to which there have been 
    violations of standards used in regard to the protection of 
    confidentiality provided to whistleblowers by the Inspector General 
    of the Department of Defense.
        (4) An assessment of the extent to which there have been 
    incidents of retaliatory investigations against whistleblowers 
    within the Office of the Inspector General.
        (5) An assessment of the extent to which the Inspector General 
    of the Department of Defense has thoroughly investigated and 
    substantiated allegations within the past 10 years against civilian 
    officials of the Department of Defense appointed to their positions 
    by and with the advice and consent of the Senate, and whether 
    Congress has been notified of the results of such investigations.
        (6) An assessment of the ability of the Inspector General of 
    the Department of Defense and the Inspectors General of the 
    military departments to access agency information necessary to the 
    execution of their duties, including classified and other sensitive 
    information, and an assessment of the adequacy of security 
    procedures to safeguard such classified or sensitive information 
    when so accessed.

       Subtitle E--Military Justice and Legal Assistance Matters

    SEC. 541. UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES.
    (a) Clarification of Authority of Judges of the Court To Administer 
Oaths and Acknowledgments.--Subsection (c) of section 936 of title 10, 
United States Code (article 136 of the Uniform Code of Military 
Justice), is amended to read as follows:
    ``(c) Each judge and senior judge of the United States Court of 
Appeals for the Armed Forces shall have the powers relating to oaths, 
affirmations, and acknowledgments provided to justices and judges of 
the United States by section 459 of title 28.''.
    (b) Modification of Term of Judges of the Court to Restore Rotation 
of Judges.--
        (1) Early retirement authorized for one current judge.--If the 
    judge of the United States Court of Appeals for the Armed Forces 
    who is the junior in seniority of the two judges of the court whose 
    terms of office under section 942(b)(2) of title 10, United States 
    Code (article 142(b)(2) of the Uniform Code of Military Justice), 
    expire on July 31, 2021, chooses to retire one year early, that 
    judge--
            (A) may retire from service on the court effective August 
        1, 2020; and
            (B) shall be treated, upon such retirement, for all 
        purposes as having completed a term of service for which the 
        judge was appointed as a judge of the court.
        (2) Staggering of future appointments.--Section 942(b)(2) of 
    title 10, United States Code (article 142(b)(2) of the Uniform Code 
    of Military Justice), is amended--
            (A) by inserting ``(A)'' after ``(2)'';
            (B) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively; and
            (C) by adding at the end the following new subparagraph:
    ``(B) If at the time of the appointment of a judge the date that is 
otherwise applicable under subparagraph (A) for the expiration of the 
term of service of the judge is the same as the date for the expiration 
of the term of service of a judge already on the court, then the term 
of the judge being appointed shall expire on the first July 31 after 
such date on which no term of service of a judge already on the court 
will expire.''.
        (3) Application of amendments.--The amendments made by 
    paragraph (2) shall apply with respect to appointments to the 
    United States Court of Appeals for the Armed Forces that are made 
    on or after the date of the enactment of this Act.
    (c) Repeal of Requirement Relating to Political Party Status of 
Judges of the Court.--Section 942(b)(3) of title 10, United States Code 
(article 142(b)(3) of the Uniform Code of Military Justice), is amended 
by striking ``Not more than three of the judges of the court may be 
appointed from the same political party, and no'' and by inserting 
``No''.
    (d) Modification of Daily Rate of Compensation for Senior Judges 
Performing Judicial Duties With the Court.--Section 942(e)(2) of title 
10, United States Code (article 142(e)(2) of the Uniform Code of 
Military Justice), is amended by striking ``equal to'' and all that 
follows and inserting ``equal to the difference between--
        ``(A) the daily equivalent of the annual rate of pay provided 
    for a judge of the court; and
        ``(B) the daily equivalent of the annuity of the judge under 
    section 945 of this title (article 145), the applicable provisions 
    of title 5, or any other retirement system for employees of the 
    Federal Government under which the senior judge receives an 
    annuity.''.
    (e) Repeal of Dual Compensation Provision Relating to Judges of the 
Court.--Section 945 of title 10, United States Code (article 145 of the 
Uniform Code of Military Justice), is amended--
        (1) in subsection (d), by striking ``subsection (g)(1)(B)'' and 
    inserting ``subsection (f)(1)(B)'';
        (2) by striking subsection (f); and
        (3) by redesignating subsections (g), (h), and (i) as 
    subsections (f), (g), and (h), respectively.
    SEC. 542. EFFECTIVE PROSECUTION AND DEFENSE IN COURTS-MARTIAL AND 
      PILOT PROGRAMS ON PROFESSIONAL MILITARY JUSTICE DEVELOPMENT FOR 
      JUDGE ADVOCATES.
    (a) Program for Effective Prosecution and Defense.--The Secretary 
concerned shall carry out a program to ensure that--
        (1) trial counsel and defense counsel detailed to prosecute or 
    defend a court-martial have sufficient experience and knowledge to 
    effectively prosecute or defend the case; and
        (2) a deliberate professional developmental process is in place 
    to ensure effective prosecution and defense in all courts-martial.
    (b) Military Justice Experience Designators or Skill Identifiers.--
The Secretary concerned shall establish and use a system of military 
justice experience designators or skill identifiers for purposes of 
identifying judge advocates with skill and experience in military 
justice proceedings in order to ensure that judge advocates with 
experience and skills identified through such experience designators or 
skill identifiers are assigned to develop less experienced judge 
advocates in the prosecution and defense in courts-martial under a 
program carried out pursuant to subsection (a).
    (c) Pilot Programs on Professional Developmental Process for Judge 
Advocates.--
        (1) Purpose.--The Secretary concerned shall carry out a pilot 
    program to assess the feasibility and advisability of establishing 
    a deliberate professional developmental process for judge advocates 
    under the jurisdiction of the Secretary that leads to judge 
    advocates with military justice expertise serving as military 
    justice practitioners capable of prosecuting and defending complex 
    cases in military courts-martial.
        (2) Additional matters.--A pilot program may also assess such 
    other matters related to professional military justice development 
    for judge advocates as the Secretary concerned considers 
    appropriate.
        (3) Duration.--Each pilot program shall be for a period of five 
    years.
        (4) Report.--Not later than four years after the date of the 
    enactment of this Act, the Secretary concerned shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives a report on the pilot programs conducted under this 
    section. The report shall include the following:
            (A) A description and assessment of each pilot program.
            (B) Such recommendations as the Secretary considers 
        appropriate in light of the pilot programs, including whether 
        any pilot program should be extended or made permanent.
    (d) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 
101(a)(9) of title 10, United States Code.
    SEC. 543. INCLUSION IN ANNUAL REPORTS ON SEXUAL ASSAULT PREVENTION 
      AND RESPONSE EFFORTS OF THE ARMED FORCES OF INFORMATION ON 
      COMPLAINTS OF RETALIATION IN CONNECTION WITH REPORTS OF SEXUAL 
      ASSAULT IN THE ARMED FORCES.
    Section 1631(b) of the Ike Skelton National Defense Authorization 
Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 1561 note) is 
amended by adding at the end the following new paragraph:
        ``(12) Information on each claim of retaliation in connection 
    with a report of sexual assault in the Armed Force made by or 
    against a member of such Armed Force as follows:
            ``(A) A narrative description of each complaint.
            ``(B) The nature of such complaint, including whether the 
        complainant claims professional or social retaliation.
            ``(C) The gender of the complainant.
            ``(D) The gender of the individual claimed to have 
        committed the retaliation.
            ``(E) The nature of the relationship between the 
        complainant and the individual claimed to have committed the 
        retaliation.
            ``(F) The nature of the relationship, if any, between the 
        individual alleged to have committed the sexual assault 
        concerned and the individual claimed to have committed the 
        retaliation.
            ``(G) The official or office that received the complaint.
            ``(H) The organization that investigated or is 
        investigating the complaint.
            ``(I) The current status of the investigation.
            ``(J) If the investigation is complete, a description of 
        the results of the investigation, including whether the results 
        of the investigation were provided to the complainant.
            ``(K) If the investigation determined that retaliation 
        occurred, whether the retaliation was an offense under chapter 
        47 of title 10, United States Code (the Uniform Code of 
        Military Justice).''.
    SEC. 544. EXTENSION OF THE REQUIREMENT FOR ANNUAL REPORT REGARDING 
      SEXUAL ASSAULTS AND COORDINATION WITH RELEASE OF FAMILY ADVOCACY 
      PROGRAM REPORT.
    Section 1631 of the Ike Skelton National Defense Authorization Act 
for Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4433; 10 U.S.C. 
1561 note) is amended--
        (1) in subsection (a), by striking ``March 1, 2017'' and 
    inserting ``March 1, 2021''; and
        (2) by adding at the end the following new subsection:
    ``(g) Coordination of Release Date Between Annual Reports Regarding 
Sexual Assaults and Family Advocacy Report.--The Secretary of Defense 
shall ensure that the reports required under subsection (a) for a given 
year are delivered to the Committees on Armed Services of the Senate 
and House of Representatives simultaneously with the Family Advocacy 
Program report for that year regarding child abuse and domestic 
violence, as required by section 574 of the National Defense 
Authorization Act for Fiscal Year 2017.''.
    SEC. 545. METRICS FOR EVALUATING THE EFFORTS OF THE ARMED FORCES TO 
      PREVENT AND RESPOND TO RETALIATION IN CONNECTION WITH REPORTS OF 
      SEXUAL ASSAULT IN THE ARMED FORCES.
    (a) Metrics Required.--The Sexual Assault Prevention and Response 
Office of the Department of Defense shall establish and issue to the 
military departments metrics to be used to evaluate the efforts of the 
Armed Forces to prevent and respond to retaliation in connection with 
reports of sexual assault in the Armed Forces.
    (b) Best Practices.--For purposes of enhancing and achieving 
uniformity in the efforts of the Armed Forces to prevent and respond to 
retaliation in connection with reports of sexual assault in the Armed 
Forces, the Sexual Assault Prevention and Response Office shall 
identify and issue to the military departments best practices to be 
used in the prevention of and response to retaliation in connection 
with such reports.
    SEC. 546. TRAINING FOR DEPARTMENT OF DEFENSE PERSONNEL WHO 
      INVESTIGATE CLAIMS OF RETALIATION.
    (a) Training Regarding Nature and Consequences of Retaliation.--The 
Secretary of Defense shall ensure that the personnel of the Department 
of Defense specified in subsection (b) who investigate claims of 
retaliation receive training on the nature and consequences of 
retaliation, and, in cases involving reports of sexual assault, the 
nature and consequences of sexual assault trauma. The training shall 
include such elements as the Secretary shall specify for purposes of 
this section.
    (b) Covered Personnel.--The personnel of the Department of Defense 
covered by subsection (a) are the following:
        (1) Personnel of military criminal investigation services.
        (2) Personnel of Inspectors General offices.
        (3) Personnel of any command of the Armed Forces who are 
    assignable by the commander of such command to investigate claims 
    of retaliation made by or against members of such command.
    (c) Retaliation Defined.--In this section, the term ``retaliation'' 
has the meaning given the term by the Secretary of Defense in the 
strategy required by section 539 of the National Defense Authorization 
Act of Fiscal Year 2016 (Public Law 114-92; 129 Stat. 818) or a 
subsequent meaning specified by the Secretary.
    SEC. 547. NOTIFICATION TO COMPLAINANTS OF RESOLUTION OF 
      INVESTIGATIONS INTO RETALIATION.
    (a) Notification Required.--
        (1) Members of the army, navy, air force, and marine corps.--
    Under regulations prescribed by the Secretary of Defense, upon the 
    conclusion of an investigation by an office, element, or personnel 
    of the Department of Defense or of the Armed Forces of a complaint 
    by a member of the Armed Forces of retaliation, the member shall be 
    informed in writing of the results of the investigation, including 
    whether the complaint was substantiated, unsubstantiated, or 
    dismissed.
        (2) Members of coast guard.--The Secretary of Homeland Security 
    shall provide in a similar manner for notification in writing of 
    the results of investigations by offices, elements, or personnel of 
    the Department of Homeland Security or of the Coast Guard of 
    complaints of retaliation made by members of the Coast Guard when 
    it is not operating as a service in the Navy.
    (b) Retaliation Defined.--In this section, the term ``retaliation'' 
has the meaning given the term by the Secretary of Defense in the 
strategy required by section 539 of the National Defense Authorization 
Act of Fiscal Year 2016 (Public Law 114-92; 129 Stat. 818) or a 
subsequent meaning specified by the Secretary.
    SEC. 548. MODIFICATION OF DEFINITION OF SEXUAL HARASSMENT FOR 
      PURPOSES OF INVESTIGATIONS BY COMMANDING OFFICERS OF COMPLAINTS 
      OF HARASSMENT.
    (a) In General.--Section 1561(e) of title 10, United States Code, 
is amended--
        (1) in paragraph (1)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``(constituting a form of sex discrimination)''; and
            (B) in subparagraph (B), by striking ``the work 
        environment'' and inserting ``the environment''; and
        (2) in paragraph (3), by striking ``in the workplace''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
with respect to complaints described in section 1561 of title 10, 
United States Code, that are first received by a commanding officer or 
officer in charge on or after that date.
    SEC. 549. IMPROVED DEPARTMENT OF DEFENSE PREVENTION OF AND RESPONSE 
      TO HAZING IN THE ARMED FORCES.
    (a) Anti-Hazing Database.--The Secretary of Defense shall provide 
for the establishment and use of a comprehensive and consistent data-
collection system for the collection of reports, including anonymous 
reports, of incidents of hazing involving a member of the Armed Forces. 
The Secretary shall issue department-wide guidance regarding the 
availability and use of the database, including information on 
protected classes, such as race and religion, who are often the victims 
of hazing.
    (b) Improved Training.--Each Secretary of a military department, in 
consultation with the Chief of Staff of each Armed Force under the 
jurisdiction of such Secretary, shall seek to improve training to 
assist members of the Armed Forces better recognize, prevent, and 
respond to hazing at all command levels.
    (c) Annual Reports on Hazing.--
        (1) Report required.--Not later than January 31 of each year 
    through January 31, 2021, each Secretary of a military department, 
    in consultation with the Chief of Staff of each Armed Force under 
    the jurisdiction of such Secretary, shall submit to the Committees 
    on Armed Services of the Senate and the House of Representatives a 
    report containing a description of efforts during the previous 
    year--
            (A) to prevent and to respond to incidents of hazing 
        involving members of the Armed Forces;
            (B) to track and encourage reporting, including reporting 
        anonymously, incidents of hazing in the Armed Force; and
            (C) to ensure the consistent implementation of anti-hazing 
        policies.
        (2) Additional elements.--Each report required by this 
    subsection also shall address the same elements originally 
    addressed in the anti-hazing reports required by section 534 of the 
    National Defense Authorization Act for Fiscal Year 2013 (Public Law 
    112-239; 126 Stat. 1726).

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

    SEC. 551. PURPOSE, SCOPE, AND DEFINITIONS.
    (a) Purpose.--The purpose of this subtitle is to establish the 
National Commission on Military, National, and Public Service to--
        (1) conduct a review of the military selective service process 
    (commonly referred to as ``the draft''); and
        (2) consider methods to increase participation in military, 
    national, and public service in order to address national security 
    and other public service needs of the Nation.
    (b) Scope of Review.--In order to provide the fullest understanding 
of the matters required under the review under subsection (a), the 
Commission shall consider--
        (1) the need for a military selective service process, 
    including the continuing need for a mechanism to draft large 
    numbers of replacement combat troops;
        (2) means by which to foster a greater attitude and ethos of 
    service among United States youth, including an increased 
    propensity for military service;
        (3) the feasibility and advisability of modifying the military 
    selective service process in order to obtain for military, 
    national, and public service individuals with skills (such as 
    medical, dental, and nursing skills, language skills, cyber skills, 
    and science, technology, engineering, and mathematics (STEM) 
    skills) for which the Nation has a critical need, without regard to 
    age or sex; and
        (4) the feasibility and advisability of including in the 
    military selective service process, as so modified, an eligibility 
    or entitlement for the receipt of one or more Federal benefits 
    (such as educational benefits, subsidized or secured student loans, 
    grants or hiring preferences) specified by the Commission for 
    purposes of the review.
    (c) Definitions.--In this subtitle:
        (1) The term ``military service'' means active service (as that 
    term is defined in subsection (d)(3) of section 101 of title 10, 
    United States Code) in one of the uniformed services (as that term 
    is defined in subsection (a)(5) of such section).
        (2) The term ``national service'' means civilian employment in 
    Federal or State Government in a field in which the Nation and the 
    public have critical needs.
        (3) The term ``public service'' means civilian employment in 
    any non-governmental capacity, including with private for-profit 
    organizations and non-profit organizations (including with 
    appropriate faith-based organizations), that pursues and enhances 
    the common good and meets the needs of communities, the States, or 
    the Nation in sectors related to security, health, care for the 
    elderly, and other areas considered appropriate by the Commission 
    for purposes of this subtitle.
    SEC. 552. PRELIMINARY REPORT ON PURPOSE AND UTILITY OF REGISTRATION 
      SYSTEM UNDER MILITARY SELECTIVE SERVICE ACT.
    (a) Report Required.--To assist the Commission in carrying out its 
duties under this subtitle, the Secretary of Defense shall--
        (1) submit, not later than July 1, 2017, to the Committees on 
    Armed Services of the Senate and the House of Representatives and 
    to the Commission a report on the current and future need for a 
    centralized registration system under the Military Selective 
    Service Act (50 U.S.C. 3801 et seq.); and
        (2) provide a briefing on the results of the report.
    (b) Elements of Report.--The report required by subsection (a) 
shall include the following:
        (1) A detailed analysis of the current benefits derived, both 
    directly and indirectly, from the Military Selective Service 
    System, including--
            (A) the extent to which mandatory registration benefits 
        military recruiting;
            (B) the extent to which a national registration capability 
        serves as a deterrent to potential enemies of the United 
        States; and
            (C) the extent to which expanding registration to include 
        women would impact these benefits.
        (2) An analysis of the functions currently performed by the 
    Selective Service System that would be assumed by the Department of 
    Defense in the absence of a national registration capability.
        (3) An analysis of the systems, manpower, and facilities that 
    would be needed by the Department to physically mobilize inductees 
    in the absence of the Selective Service System.
        (4) An analysis of the feasibility and utility of eliminating 
    the current focus on mass mobilization of primarily combat troops 
    in favor of a system that focuses on mobilization of all military 
    occupational specialties, and the extent to which such a change 
    would impact the need for both male and female inductees.
        (5) A detailed analysis of the Department's personnel needs in 
    the event of an emergency requiring mass mobilization, including--
            (A) a detailed timeline, along with the factors considered 
        in arriving at this timeline, of when the Department would 
        require--
                (i) the first inductees to report for service;
                (ii) the first 100,000 inductees to report for service; 
            and
                (iii) the first medical personnel to report for 
            service; and
            (B) an analysis of any additional critical skills that 
        would be needed in the event of a national emergency, and a 
        timeline for when the Department would require the first 
        inductees to report for service.
        (6) A list of the assumptions used by the Department when 
    conducting its analysis in preparing the report.
    (c) Comptroller General Review.--Not later than December 1, 2017, 
the Comptroller General of the United States shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives and to the Commission a review of the procedures used 
by the Department of Defense in evaluating selective service 
requirements.
    SEC. 553. NATIONAL COMMISSION ON MILITARY, NATIONAL, AND PUBLIC 
      SERVICE.
    (a) Establishment.--There is established in the executive branch an 
independent commission to be known as the National Commission on 
Military, National, and Public Service (in this subtitle referred to as 
the ``Commission''). The Commission shall be considered an independent 
establishment of the Federal Government as defined by section 104 of 
title 5, United States Code, and a temporary organization under section 
3161 of such title.
    (b) Membership.--
        (1) Number and appointment.--The Commission shall be composed 
    of 11 members appointed as follows:
            (A) The President shall appoint three members.
            (B) The Majority Leader of the Senate shall appoint one 
        member.
            (C) The Minority Leader of the Senate shall appoint one 
        member.
            (D) The Speaker of the House of Representatives shall 
        appoint one member.
            (E) The Minority Leader of the House of Representatives 
        shall appoint one member.
            (F) The Chairman of the Committee on Armed Services of the 
        Senate shall appoint one member.
            (G) The ranking minority member of the Committee on Armed 
        Services of the Senate shall appoint one member.
            (H) The Chairman of the Committee on Armed Services of the 
        House of Representatives shall appoint one member.
            (I) The ranking minority member of the Committee on Armed 
        Services of the House of Representatives shall appoint one 
        member.
        (2) Deadline for appointment.--Members shall be appointed to 
    the Commission under paragraph (1) not later than 90 days after the 
    Commission establishment date.
        (3) Effect of lack of appointment by appointment date.--If one 
    or more appointments under subparagraph (A) of paragraph (1) is not 
    made by the appointment date specified in paragraph (2), the 
    authority to make such appointment or appointments shall expire, 
    and the number of members of the Commission shall be reduced by the 
    number equal to the number of appointments so not made. If an 
    appointment under subparagraph (B), (C), (D), (E), (F), (G), (H), 
    or (I) of paragraph (1) is not made by the appointment date 
    specified in paragraph (2), the authority to make an appointment 
    under such subparagraph shall expire, and the number of members of 
    the Commission shall be reduced by the number equal to the number 
    otherwise appointable under such subparagraph.
    (c) Chair and Vice Chair.--The Commission shall elect a Chair and 
Vice Chair from among its members.
    (d) Terms.--Members shall be appointed for the life of the 
Commission. A vacancy in the Commission shall not affect its powers, 
and shall be filled in the same manner as the original appointment was 
made.
    (e) Status as Federal Employees.--Notwithstanding the requirements 
of section 2105 of title 5, United States Code, including the required 
supervision under subsection (a)(3) of such section, the members of the 
Commission shall be deemed to be Federal employees.
    (f) Pay for Members of the Commission.--
        (1) In general.--Each member, other than the Chair, of the 
    Commission shall be paid at a rate equal to the daily equivalent of 
    the annual rate of basic pay payable for level IV of the Executive 
    Schedule under section 5315 of title 5, United States Code, for 
    each day (including travel time) during which the member is engaged 
    in the actual performance of duties vested in the Commission.
        (2) Chair.--The Chair of the Commission shall be paid at a rate 
    equal to the daily equivalent of the annual rate of basic pay 
    payable for level III of the Executive Schedule under section 5314, 
    of title 5, United States Code, for each day (including travel 
    time) during which the member is engaged in the actual performance 
    of duties vested in the Commission.
    (g) Use of Government Information.--The Commission may secure 
directly from any department or agency of the Federal Government such 
information as the Commission considers necessary to carry out its 
duties. Upon such request of the chair of the Commission, the head of 
such department or agency shall furnish such information to the 
Commission.
    (h) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as departments 
and agencies of the United States.
    (i) Authority To Accept Gifts.--The Commission may accept, use, and 
dispose of gifts or donations of services, goods, and property from 
non-Federal entities for the purposes of aiding and facilitating the 
work of the Commission. The authority in this subsection does not 
extend to gifts of money.
    (j) Personal Services.--
        (1) Authority to procure.--The Commission may--
            (A) procure the services of experts or consultants (or of 
        organizations of experts or consultants) in accordance with the 
        provisions of section 3109 of title 5, United States Code; and
            (B) pay in connection with such services travel expenses of 
        individuals, including transportation and per diem in lieu of 
        subsistence, while such individuals are traveling from their 
        homes or places of business to duty stations.
        (2) Limitation.--The total number of experts or consultants 
    procured pursuant to paragraph (1) may not exceed five experts or 
    consultants.
        (3) Maximum daily pay rates.--The daily rate paid an expert or 
    consultant procured pursuant to paragraph (1) may not exceed the 
    daily rate paid a person occupying a position at level IV of the 
    Executive Schedule under section 5315 of title 5, United States 
    Code.
    (k) Funding.--Of the amounts authorized to be appropriated by this 
Act for fiscal year 2017 for the Department of Defense, up to 
$15,000,000 shall be made available to the Commission to carry out its 
duties under this subtitle. Funds made available to the Commission 
under the preceding sentence shall remain available until expended.
    SEC. 554. COMMISSION HEARINGS AND MEETINGS.
    (a) In General.--The Commission shall conduct hearings on the 
recommendations it is taking under consideration. Any such hearing, 
except a hearing in which classified information is to be considered, 
shall be open to the public. Any hearing open to the public shall be 
announced on a Federal website at least 14 days in advance. For all 
hearings open to the public, the Commission shall release an agenda and 
a listing of materials relevant to the topics to be discussed. The 
Commission is authorized and encouraged to hold hearings and meetings 
in various locations throughout the country to provide maximum 
opportunity for public comment and participation in the Commission's 
execution of its duties.
    (b) Meetings.--
        (1) Initial meeting.--The Commission shall hold its initial 
    meeting not later than 30 days after the date as of which all 
    members have been appointed.
        (2) Subsequent meetings.--After its initial meeting, the 
    Commission shall meet upon the call of the chair or a majority of 
    its members.
        (3) Public meetings.--Each meeting of the Commission shall be 
    held in public unless any member objects or classified information 
    is to be considered.
    (c) Quorum.--Six members of the Commission shall constitute a 
quorum, but a lesser number may hold hearings or meetings.
    (d) Public Comments.--
        (1) Solicitation.--The Commission shall seek written comments 
    from the general public and interested parties on matters of the 
    Commission's review under this subtitle. Comments shall be 
    requested through a solicitation in the Federal Register and 
    announcement on the Internet website of the Commission.
        (2) Period for submittal.--The period for the submittal of 
    comments pursuant to the solicitation under paragraph (1) shall end 
    not earlier than 30 days after the date of the solicitation and 
    shall end on or before the date on which recommendations are 
    transmitted to the Commission under section 555(d).
        (3) Use by commission.--The Commission shall consider the 
    comments submitted under this subsection when developing its 
    recommendations.
    (e) Space for Use of Commission.--Not later than 90 days after the 
date of the enactment of this Act, the Administrator of General 
Services, in consultation with the Secretary, shall identify and make 
available suitable excess space within the Federal space inventory to 
house the operations of the Commission. If the Administrator is not 
able to make such suitable excess space available within such 90-day 
period, the Commission may lease space to the extent the funds are 
available.
    (f) Contracting Authority.--The Commission may acquire 
administrative supplies and equipment for Commission use to the extent 
funds are available.
    SEC. 555. PRINCIPLES AND PROCEDURE FOR COMMISSION RECOMMENDATIONS.
    (a) Context of Commission Review.--The Commission shall--
        (1) conduct a review of the military selective service process; 
    and
        (2) consider methods to increase participation in military, 
    national, and public service opportunities to address national 
    security and other public service needs of the Nation.
    (b) Development of Commission Recommendations.--The Commission 
shall develop recommendations on the matters subject to its review 
under subsection (a) that are consistent with the principles 
established by the President under subsection (c).
    (c) Presidential Principles.--
        (1) In general.--Not later than three months after the 
    Commission establishment date, the President shall establish and 
    transmit to the Commission and Congress principles for reform of 
    the military selective service process, including means by which to 
    best acquire for the Nation skills necessary to meet the military, 
    national, and public service requirements of the Nation in 
    connection with that process.
        (2) Elements.--The principles required under this subsection 
    shall address the following:
            (A) Whether, in light of the current and predicted global 
        security environment and the changing nature of warfare, there 
        continues to be a continuous or potential need for a military 
        selective service process designed to produce large numbers of 
        combat members of the Armed Forces, and if so, whether such a 
        system should include mandatory registration by all citizens 
        and residents, regardless of sex.
            (B) The need, and how best to meet the need, of the Nation, 
        the military, the Federal civilian sector, and the private 
        sector (including the non-profit sector) for individuals 
        possessing critical skills and abilities, and how best to 
        employ individuals possessing those skills and abilities for 
        military, national, or public service.
            (C) How to foster within the Nation, particularly among 
        United States youth, an increased sense of service and civic 
        responsibility in order to enhance the acquisition by the 
        Nation of critically needed skills through education and 
        training, and how best to acquire those skills for military, 
        national, or public service.
            (D) How to increase a propensity among United States youth 
        for service in the military, or alternatively in national or 
        public service, including how to increase the pool of qualified 
        applicants for military service.
            (E) The need in Government, including the military, and in 
        the civilian sector to increase interest, education, and 
        employment in certain critical fields, including science, 
        technology, engineering, and mathematics (STEM), national 
        security, cyber, linguistics and foreign language, education, 
        health care, and the medical professions.
            (F) How military, national, and public service may be 
        incentivized, including through educational benefits, grants, 
        federally-insured loans, Federal or State hiring preferences, 
        or other mechanisms that the President considers appropriate.
            (G) Any other matters the President considers appropriate 
        for purposes of this subtitle.
    (d) Cabinet Recommendations.--Not later than seven months after the 
Commission establishment date, the Secretary of Defense, the Attorney 
General, the Secretary of Homeland Security, the Secretary of Labor, 
and such other Government officials, and such experts, as the President 
shall designate for purposes of this subsection shall jointly transmit 
to the Commission and Congress recommendations for the reform of the 
military selective service process and military, national, and public 
service in connection with that process.
    (e) Commission Report and Recommendations.--
        (1) Report.--Not later than 30 months after the Commission 
    establishment date, the Commission shall transmit to the President 
    and Congress a report containing the findings and conclusions of 
    the Commission, together with the recommendations of the Commission 
    regarding the matters reviewed by the Commission pursuant to this 
    subtitle. The Commission shall include in the report legislative 
    language and recommendations for administrative action to implement 
    the recommendations of the Commission. The findings and conclusions 
    in the report shall be based on the review and analysis by the 
    Commission of the recommendations made under subsection (d).
        (2) Requirement for approval.--The recommendations of the 
    Commission must be approved by at least five members of the 
    Commission before the recommendations may be transmitted to the 
    President and Congress under paragraph (1).
        (3) Public availability.--The Commission shall publish a copy 
    of the report required by paragraph (1) on an Internet website 
    available to the public on the same date on which it transmits that 
    report to the President and Congress under that paragraph.
    (f) Judicial Review Precluded.--Actions under this section of the 
President, the officials specified or designated under subsection (d), 
and the Commission shall not be subject to judicial review.
    SEC. 556. EXECUTIVE DIRECTOR AND STAFF.
    (a) Executive Director.--The Commission shall appoint and fix the 
rate of basic pay for an Executive Director in accordance with section 
3161 of title 5, United States Code.
    (b) Staff.--Subject to subsections (c) and (d), the Executive 
Director, with the approval of the Commission, may appoint and fix the 
rate of basic pay for additional personnel as staff of the Commission 
in accordance with section 3161 of title 5, United States Code.
    (c) Limitations on Staff.--
        (1) Number of detailees from executive departments.--Not more 
    than one-third of the personnel employed by or detailed to the 
    Commission may be on detail from the Department of Defense and 
    other executive branch departments.
        (2) Prior duties within executive branch.--A person may not be 
    detailed from the Department of Defense or other executive branch 
    department to the Commission if, in the year before the detail is 
    to begin, that person participated personally and substantially in 
    any matter concerning the preparation of recommendations for the 
    military selective service process and military and public service 
    in connection with that process.
    (d) Limitations on Performance Reviews.--No member of the uniformed 
services, and no officer or employee of the Department of Defense or 
other executive branch department (other than a member of the uniformed 
services or officer or employee who is detailed to the Commission), 
may--
        (1) prepare any report concerning the effectiveness, fitness, 
    or efficiency of the performance of the staff of the Commission or 
    any person detailed to that staff;
        (2) review the preparation of such a report (other than for 
    administrative accuracy); or
        (3) approve or disapprove such a report.
    SEC. 557. TERMINATION OF COMMISSION.
    Except as otherwise provided in this subtitle, the Commission shall 
terminate not later than 36 months after the Commission establishment 
date.

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

    SEC. 561. MODIFICATION OF PROGRAM TO ASSIST MEMBERS OF THE ARMED 
      FORCES IN OBTAINING PROFESSIONAL CREDENTIALS.
    (a) Scope of Program.--Section 2015(a)(1) of title 10, United 
States Code, is amended by striking ``incident to the performance of 
their military duties''.
    (b) Quality Assurance of Certification Programs and Standards.--
Section 2015(c) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking ``is accredited by an 
    accreditation body that'' and all that follows and inserting 
    ``meets one of the requirements specified in paragraph (2).''; and
        (2) by striking paragraph (2) and inserting the following new 
    paragraph (2):
        ``(2) The requirements for a credentialing program specified in 
    this paragraph are that the credentialing program--
            ``(A) is accredited by a nationally-recognized, third-party 
        personnel certification program accreditor;
            ``(B)(i) is sought or accepted by employers within the 
        industry or sector involved as a recognized, preferred, or 
        required credential for recruitment, screening, hiring, 
        retention, or advancement purposes; and
            ``(ii) where appropriate, is endorsed by a nationally-
        recognized trade association or organization representing a 
        significant part of the industry or sector;
            ``(C) grants licenses that are recognized by the Federal 
        Government or a State government; or
            ``(D) meets credential standards of a Federal agency.''.
    SEC. 562. INCLUSION OF ALCOHOL, PRESCRIPTION DRUG, OPIOID, AND 
      OTHER SUBSTANCE ABUSE COUNSELING AS PART OF REQUIRED 
      PRESEPARATION COUNSELING.
    Section 1142(b)(11) of title 10, United States Code, is amended by 
inserting before the period the following: ``and information concerning 
the availability of treatment options and resources to address 
substance abuse, including alcohol, prescription drug, and opioid 
abuse''.
    SEC. 563. INCLUSION OF INFORMATION IN TRANSITION ASSISTANCE PROGRAM 
      REGARDING EFFECT OF RECEIPT OF BOTH VETERAN DISABILITY 
      COMPENSATION AND VOLUNTARY SEPARATION PAY.
    Section 1144(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
        ``(10) Provide information regarding the required deduction, 
    pursuant to subsection (h) of section 1175a of this title, from 
    disability compensation paid by the Secretary of Veterans Affairs 
    of amounts equal to any voluntary separation pay received by the 
    member under such section.''.
    SEC. 564. TRAINING UNDER TRANSITION ASSISTANCE PROGRAM ON CAREER 
      AND EMPLOYMENT OPPORTUNITIES ASSOCIATED WITH TRANSPORTATION 
      SECURITY CARDS.
    (a) In General.--Section 1144(b) of title 10, United States Code, 
as amended by section 563, is further amended by adding at the end the 
following new paragraph:
        ``(11) Acting through the Secretary of the department in which 
    the Coast Guard is operating, provide information on career and 
    employment opportunities available to members with transportation 
    security cards issued under section 70105 of title 46.''.
    (b) Deadline for Implementation.--The program carried out under 
section 1144 of title 10, United States Code, shall satisfy the 
requirements of subsection (b)(11) of such section (as added by 
subsection (a) of this section) by not later than 180 days after the 
date of the enactment of this Act.
    SEC. 565. EXTENSION OF SUICIDE PREVENTION AND RESILIENCE PROGRAM.
    Section 10219(g) of title 10, United States Code, is amended by 
striking ``October 1, 2017'' and inserting ``October 1, 2018''.
    SEC. 566. CONGRESSIONAL NOTIFICATION IN ADVANCE OF APPOINTMENTS TO 
      SERVICE ACADEMIES.
    (a) United States Military Academy.--Section 4342(a) of title 10, 
United States Code, is amended in the matter after paragraph (10) by 
adding at the end the following new sentence: ``When a nominee of a 
Senator, Representative, or Delegate is selected for appointment as a 
cadet, the Senator, Representative, or Delegate shall be notified at 
least 48 hours before the official notification or announcement of the 
appointment is made.''.
    (b) United States Naval Academy.--Section 6954(a) of title 10, 
United States Code, is amended in the matter after paragraph (10) by 
adding at the end the following new sentence: ``When a nominee of a 
Senator, Representative, or Delegate is selected for appointment as a 
midshipman, the Senator, Representative, or Delegate shall be notified 
at least 48 hours before the official notification or announcement of 
the appointment is made.''.
    (c) United States Air Force Academy.--Section 9342(a) of title 10, 
United States Code, is amended in the matter after paragraph (10) by 
adding at the end the following new sentence: ``When a nominee of a 
Senator, Representative, or Delegate is selected for appointment as a 
cadet, the Senator, Representative, or Delegate shall be notified at 
least 48 hours before the official notification or announcement of the 
appointment is made.''.
    (d) United States Merchant Marine Academy.--Section 51302 of title 
46, United States Code, is amended by adding at the end the following:
    ``(e) Congressional Notification in Advance of Appointments.--When 
a nominee of a Senator, Representative, or Delegate is selected for 
appointment as a cadet, the Senator, Representative, or Delegate shall 
be notified at least 48 hours before the official notification or 
announcement of the appointment is made.''.
    (e) Application of Amendments.--The amendments made by this section 
shall apply with respect to the appointment of cadets and midshipmen to 
the United States Military Academy, the United States Naval Academy, 
the United States Air Force Academy, and the United States Merchant 
Marine Academy for classes entering these service academies after 
January 1, 2018.
    SEC. 567. REPORT AND GUIDANCE ON JOB TRAINING, EMPLOYMENT SKILLS 
      TRAINING, APPRENTICESHIPS, AND INTERNSHIPS AND SKILLBRIDGE 
      INITIATIVES FOR MEMBERS OF THE ARMED FORCES WHO ARE BEING 
      SEPARATED.
    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Under Secretary of Defense for Personnel and 
Readiness shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives, and make available to the 
public, a report evaluating the success of the Job Training, Employment 
Skills Training, Apprenticeships, and Internships (known as JTEST-AI) 
and SkillBridge initiatives, under which civilian businesses and 
companies make available to members of the Armed Forces who are being 
separated from the Armed Forces training or internship opportunities 
that offer a high probability of employment for the members after their 
separation.
    (b) Elements.--In preparing the report required by subsection (a), 
the Under Secretary of Defense for Personnel and Readiness shall use 
the effectiveness metrics described in Enclosure 5 of Department of 
Defense Instruction No. 1322.29. The report shall include the 
following:
        (1) An assessment of the successes of the Job Training, 
    Employment Skills Training, Apprenticeships, and Internships and 
    SkillBridge initiatives.
        (2) Recommendations by the Under Secretary on ways in which the 
    administration of the initiatives could be improved.
        (3) Recommendations by civilian companies participating in the 
    initiatives on ways in which the administration of the initiatives 
    could be improved.
    SEC. 568. MILITARY-TO-MARINER TRANSITION.
    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense and the Secretary of 
the department in which the Coast Guard is operating shall jointly 
report to the Committee on Armed Services and the Committee on 
Transportation and Infrastructure of the House of Representatives and 
the Committee on Armed Services and the Committee on Commerce, Science, 
and Transportation of the Senate on steps the Departments of Defense 
and Homeland Security have taken or intend to take--
        (1) to maximize the extent to which United States Armed Forces 
    service, training, and qualifications are creditable toward meeting 
    the laws and regulations governing United States merchant mariner 
    license, certification, and document laws and the International 
    Convention on Standards of Training, Certification and Watchkeeping 
    for Seafarers, 1978, including steps to enhance interdepartmental 
    coordination; and
        (2) to promote better awareness among Armed Forces personnel 
    who serve in vessel operating positions of the requirements for 
    postservice use of Armed Forces training, education, and practical 
    experience in satisfaction of requirements for merchant mariner 
    credentials under section 11.213 of title 46, Code of Federal 
    Regulations, and the need to document such service in a manner 
    suitable for post-service use.
    (b) List of Training Programs.--The report under subsection (a) 
shall include a list of Army, Navy, and Coast Guard training programs 
open to Army, Navy, and Coast Guard vessel operators, respectively, 
that shows--
        (1) which programs have been approved for credit toward 
    merchant mariner credentials;
        (2) which programs are under review for such approval;
        (3) which programs are not relevant to the training needed for 
    merchant mariner credentials; and
        (4) which programs could become eligible for credit toward 
    merchant mariner credentials with minor changes.

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

    SEC. 571. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
      AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES 
      AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.
    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to be appropriated for 
fiscal year 2017 by section 301 and available for operation and 
maintenance for Defense-wide activities as specified in the funding 
table in division D, $30,000,000 shall be available only for the 
purpose of providing assistance to local educational agencies under 
subsection (a) of section 572 of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 20 U.S.C. 7703b).
    (b) Impact Aid for Children With Severe Disabilities.--Of the 
amount authorized to be appropriated for fiscal year 2017 by section 
301 and available for operation and maintenance for Defense-wide 
activities as specified in the funding table in section 4301, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).
    (c) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)).
    SEC. 572. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO THE 
      TRANSITION AND SUPPORT OF MILITARY DEPENDENT STUDENTS TO LOCAL 
      EDUCATIONAL AGENCIES.
    (a) Extension.--Section 574(c)(3) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (20 U.S.C. 7703b note) 
is amended by striking ``September 30, 2016'' and inserting ``September 
30, 2017''.
    (b) Information To Be Included With Future Requests for 
Extension.--The budget justification materials that accompany any 
budget of the President for a fiscal year after fiscal year 2017 (as 
submitted to Congress pursuant to section 1105 of title 31, United 
States Code) that includes a request for the extension of section 
574(c) of the John Warner National Defense Authorization Act for Fiscal 
Year 2007 shall include the following:
        (1) A full accounting of the expenditure of funds pursuant to 
    such section 574(c) during the last fiscal year ending before the 
    date of the submittal of the budget.
        (2) An assessment of the impact of the expenditure of such 
    funds on the quality of opportunities for elementary and secondary 
    education made available for military dependent students.
    SEC. 573. ANNUAL NOTICE TO MEMBERS OF THE ARMED FORCES REGARDING 
      CHILD CUSTODY PROTECTIONS GUARANTEED BY THE SERVICEMEMBERS CIVIL 
      RELIEF ACT.
    The Secretaries of each of the military departments shall ensure 
that each member of the Armed Forces with dependents receives annually, 
and prior to each deployment, notice of the child custody protections 
afforded to members of the Armed Forces under the Servicemembers Civil 
Relief Act (50 U.S.C. 3901 et seq.).
    SEC. 574. REQUIREMENT FOR ANNUAL FAMILY ADVOCACY PROGRAM REPORT 
      REGARDING CHILD ABUSE AND DOMESTIC VIOLENCE.
    (a) Annual Report on Child Abuse and Domestic Violence.--Not later 
than April 30, 2017, and annually thereafter through April 30, 2021, 
the Secretary of Defense shall submit to the Committees on Armed 
Services of the House of Representatives and the Senate a report on the 
child abuse and domestic abuse incident data from the Department of 
Defense Family Advocacy Program central registry of child abuse and 
domestic abuse incidents for the preceding calendar year.
    (b) Contents.--The report shall contain each of the following:
        (1) The number of incidents reported during the year covered by 
    the report involving--
            (A) spouse physical or sexual abuse;
            (B) intimate partner physical or sexual abuse;
            (C) child physical or sexual abuse; and
            (D) child or domestic abuse resulting in a fatality.
        (2) An analysis of the number of such incidents that met the 
    criteria for substantiation.
        (3) An analysis of--
            (A) the types of abuse reported;
            (B) for cases involving children as the reported victims of 
        the abuse, the ages of the abused children; and
            (C) other relevant characteristics of the reported victims.
        (4) An analysis of the military status, sex, and pay grade of 
    the alleged perpetrator of the child or domestic abuse.
        (5) An analysis of the effectiveness of the Family Advocacy 
    Program.
    (c) Coordination of Release Date Between Annual Reports Regarding 
Sexual Assaults and Family Advocacy Program Report.--The Secretary of 
Defense shall ensure that the sexual assault reports required to be 
submitted under section 1631(d) of the Ike Skelton National Defense 
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 
1561 note) for a year are delivered to the Committees on Armed Services 
of the House of Representatives and the Senate simultaneously with the 
report for that year required under this section.
    SEC. 575. REPORTING ON ALLEGATIONS OF CHILD ABUSE IN MILITARY 
      FAMILIES AND HOMES.
    (a) Reports to Family Advocacy Program Offices.--
        (1) In general.--The following information shall be reported 
    immediately to the Family Advocacy Program office at the military 
    installation to which the member of the Armed Forces concerned is 
    assigned:
            (A) Credible information (which may include a reasonable 
        belief), obtained by any individual within the chain of command 
        of the member, that a child in the family or home of the member 
        has suffered an incident of child abuse.
            (B) Information, learned by a member of the Armed Forces 
        engaged in a profession or activity described in section 226(b) 
        of the Victims of Child Abuse Act of 1990 (42 U.S.C. 13031(b)) 
        for members of the Armed Forces and their dependents, that 
        gives reason to suspect that a child in the family or home of 
        the member has suffered an incident of child abuse.
        (2) Regulations.--The Secretary of Defense and the Secretary of 
    Homeland Security (with respect to the Coast Guard when it is not 
    operating as a service in the Navy) shall jointly prescribe 
    regulations to carry out this subsection.
        (3) Child abuse defined.--In this subsection, the term ``child 
    abuse'' has the meaning given that term in section 226(c) of the 
    Victims of Child Abuse Act of 1990 (42 U.S.C. 13031(c)).
    (b) Reports to State Child Welfare Services.--Section 226 of the 
Victims of Child Abuse Act of 1990 (42 U.S.C. 13031) is amended--
        (1) in subsection (a), by inserting `` and to the agency or 
    agencies provided for in subsection (e), if applicable'' before the 
    period;
        (2) by redesignating subsections (e) and (f) as subsections (f) 
    and (g), respectively; and
        (3) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e) Reporters and Recipient of Report Involving Children and 
Homes of Members of the Armed Forces.--
        ``(1) Recipients of reports.--In the case of an incident 
    described in subsection (a) involving a child in the family or home 
    of member of the Armed Forces (regardless of whether the incident 
    occurred on or off a military installation), the report required by 
    subsection (a) shall be made to the appropriate child welfare 
    services agency or agencies of the State in which the child 
    resides. The Attorney General, the Secretary of Defense, and the 
    Secretary of Homeland Security (with respect to the Coast Guard 
    when it is not operating as a service in the Navy) shall jointly, 
    in consultation with the chief executive officers of the States, 
    designate the child welfare service agencies of the States that are 
    appropriate recipients of reports pursuant to this subsection. Any 
    report on an incident pursuant to this subsection is in addition to 
    any other report on the incident pursuant to this section.
        ``(2) Makers of reports.--For purposes of the making of reports 
    under this section pursuant to this subsection, the persons engaged 
    in professions and activities described in subsection (b) shall 
    include members of the Armed Forces who are engaged in such 
    professions and activities for members of the Armed Forces and 
    their dependents.''.
    SEC. 576. REPEAL OF ADVISORY COUNCIL ON DEPENDENTS' EDUCATION.
    Section 1411 of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 929) is repealed.
    SEC. 577. SUPPORT FOR PROGRAMS PROVIDING CAMP EXPERIENCE FOR 
      CHILDREN OF MILITARY FAMILIES.
    (a) Authority to Provide Support.--The Secretary of Defense may 
provide financial or non-monetary support to qualified nonprofit 
organizations in order to assist such organizations in carrying out 
programs to support the attendance at a camp, or camp-like setting, of 
children of military families who have experienced the death of a 
family member or other loved one or who have another family member 
living with a substance use disorder or post-traumatic stress disorder.
    (b) Application for Support.--
        (1) In general.--Each organization seeking support pursuant to 
    subsection (a) shall submit to the Secretary of Defense an 
    application therefor containing such information as the Secretary 
    shall specify for purposes of this section.
        (2) Contents.--Each application submitted under paragraph (1) 
    shall include the following:
            (A) A description of the program for which support is being 
        sought, including the location of the setting or settings under 
        the program, the duration of such setting or settings, any 
        local partners participating in or contributing to the program, 
        and the ratio of counselors, trained volunteers, or both to 
        children at such setting or settings.
            (B) An estimate of the number of children of military 
        families to be supported using the support sought.
            (C) A description of the type of activities that will be 
        conducted using the support sought, including the manner in 
        which activities are particularly supportive to children of 
        military families described in subsection (a).
            (D) A description of the outreach conducted or to be 
        conducted by the organization to military families regarding 
        the program.
    (c) Use of Support.--Support provided by the Secretary of Defense 
to an organization pursuant to subsection (a) shall be used by the 
organization to support attendance at a camp, or camp-like setting, of 
children of military families described in subsection (a).
    SEC. 578. COMPTROLLER GENERAL OF THE UNITED STATES ASSESSMENT AND 
      REPORT ON EXCEPTIONAL FAMILY MEMBER PROGRAMS.
    (a) Assessment and Report Required.--
        (1) Assessment.--The Comptroller General of the United States 
    shall conduct an assessment on the effectiveness of each 
    Exceptional Family Member Program of the Armed Forces.
        (2) Report.--Not later than December 31, 2017, the Comptroller 
    General shall submit to the Committees on Armed Services of the 
    Senate and the House of Representatives a report containing the 
    results of the assessment conducted under this subsection.
    (b) Elements.--The assessment and report under subsection (a) shall 
address the following:
        (1) The differences between each Exceptional Family Member 
    Program of the Armed Forces.
        (2) The manner in which Exceptional Family Member Programs are 
    implemented on joint bases and installations.
        (3) The extent to which military family members are screened 
    for potential coverage under an Exceptional Family Member Program 
    and the manner of such screening.
        (4) The degree to which conditions of military family members 
    who qualify for coverage under an Exceptional Family Member Program 
    are taken into account in making assignments of military personnel.
        (5) The types of services provided to address the needs of 
    military family members who qualify for coverage under an 
    Exceptional Family Member Program.
        (6) The extent to which the Department of Defense has 
    implemented specific directives for providing family support and 
    enhanced case management services, such as special needs 
    navigators, to military families with special needs children.
        (7) The extent to which the Department has conducted periodic 
    reviews of best practices in the United States for the provision of 
    medical and educational services to military family members with 
    special needs.
        (8) The necessity in the Department for an advisory panel on 
    community support for military families members with special needs.
        (9) The development and implementation of the uniform policy 
    for the Department regarding families with special needs required 
    by section 1781c(e) of title 10, United States Code.
        (10) The implementation by each Armed Force of the 
    recommendations in the Government Accountability Report entitled 
    ``Military Dependent Students, Better Oversight Needed to Improve 
    Services for Children with Special Needs'' (GAO-12-680).
    SEC. 579. IMPACT AID AMENDMENTS.
    (a)  Military ``Build to Lease'' Program Housing.--Notwithstanding 
section 5(d) of the Every Student Succeeds Act (Public Law 114-95; 129 
Stat. 1806), the amendment made by section 7004(1) of such Act (Public 
Law 114-95; 129 Stat. 2077)--
        (1) for fiscal year 2016--
            (A) shall be applied as if amending section 8003(a)(5)(A) 
        of the Elementary and Secondary Education Act of 1965, as in 
        effect on the day before the date of enactment of the Every 
        Student Succeeds Act (Public Law 114-95; 129 Stat. 1802); and
            (B) shall be applicable with respect to appropriations for 
        use under title VIII of the Elementary and Secondary Education 
        Act of 1965 (Public Law 114-95; 129 Stat. 1802); and
        (2) for fiscal year 2017 and each succeeding fiscal year, shall 
    be in effect with respect to appropriations for use under title VII 
    of the Elementary and Secondary Education Act of 1965, as amended 
    by the Every Student Succeeds Act (Public Law 114-95; 129 Stat. 
    1802).
    (b) Eligibility for Heavily Impacted Local Educational Agencies.--
        (1) Amendment.--Subclause (I) of section 7003(b)(2)(B)(i) of 
    the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
    7703(b)(2)(B)(i)(I)) is amended to read as follows:

                    ``(I) is a local educational agency--

                        ``(aa) whose boundaries are the same as a 
                    Federal military installation; or
                        ``(bb)(AA) whose boundaries are the same as an 
                    island property designated by the Secretary of the 
                    Interior to be property that is held in trust by 
                    the Federal Government; and
                        ``(BB) that has no taxing authority;''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    take effect with respect to appropriations for use under title VII 
    of the Elementary and Secondary Education Act of 1965, as amended 
    by the Every Student Succeeds Act (Public Law 114-95; 129 Stat. 
    1802), beginning with fiscal year 2017 and as if enacted as part of 
    title VII of the Every Student Succeeds Act.
    (c) Special Rule Regarding the Per-Pupil Expenditure Requirement.--
        (1) References.--Except as otherwise expressly provided, any 
    reference in this subsection to a section or other provision of 
    title VII of the Elementary and Secondary Education Act of 1965 
    shall be considered to be a reference to the section or other 
    provision of such title VII as amended by the Every Student 
    Succeeds Act (Public Law 114-95; 129 Stat. 1802).
        (2) In general.--Notwithstanding section 5(d) of the Every 
    Student Succeeds Act (Public Law 114-95; 129 Stat. 1806) or section 
    7003(b)(2) of the Elementary and Secondary Education Act of 1965 
    (20 U.S.C. 7703(b)(2)), with respect to any application submitted 
    under section 7005 of such Act (20 U.S.C. 7705) for eligibility 
    consideration under subclause (II) or (V) of section 
    7003(b)(2)(B)(i) of such Act for fiscal year 2017, 2018, or 2019, 
    the Secretary of Education shall determine that a local educational 
    agency meets the per-pupil expenditure requirement for purposes of 
    such subclause (II) or (V), as applicable, only if--
            (A) in the case of a local educational agency that received 
        a basic support payment for fiscal year 2001 under section 
        8003(b)(2)(B) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7703(b)(2)(B)) (as such section was in effect 
        for such fiscal year), the agency, for the year for which the 
        application is submitted, has a per-pupil expenditure that is 
        less than the average per-pupil expenditure of the State in 
        which the agency is located or the average per-pupil 
        expenditure of all States (whichever average per-pupil 
        expenditure is greater), except that a local educational agency 
        with a total student enrollment of less than 350 students shall 
        be deemed to have satisfied such per-pupil expenditure 
        requirement; or
            (B) in the case of a local educational agency that did not 
        receive a basic support payment for fiscal year 2015 under such 
        section 8003(b)(2)(B), as so in effect, the agency, for the 
        year for which the application is submitted--
                (i) has a total student enrollment of 350 or more 
            students and a per-pupil expenditure that is less than the 
            average per-pupil expenditure of the State in which the 
            agency is located; or
                (ii) has a total student enrollment of less than 350 
            students and a per-pupil expenditure that is less than the 
            average per-pupil expenditure of a comparable local 
            educational agency or 3 comparable local educational 
            agencies (whichever average per-pupil expenditure is 
            greater), in the State in which the agency is located.
    (d) Payments for Eligible Federally Connected Children.--
        (1) Amendments.--Section 7003(b)(2) of the Elementary and 
    Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)), as amended 
    by subsection (b) and sections 7001 and 7004 of the Every Student 
    Succeeds Act (Public Law 114-95; 129 Stat. 2074, 2077), is further 
    amended--
            (A) in subclause (IV) of subparagraph (B)(i)--
                (i) in the matter preceding item (aa), by inserting 
            ``received a payment for fiscal year 2015 under section 
            8003(b)(2)(E) (as such section was in effect for such 
            fiscal year) and'' before ``has'';
                (ii) in item (aa), by striking ``50'' and inserting 
            ``35''; and
                (iii) by striking item (bb) and inserting the 
            following:
                        ``(bb)(AA) not less than 3,500 of such children 
                    are children described in subparagraphs (A) and (B) 
                    of subsection (a)(1); or
                        ``(BB) not less than 7,000 of such children are 
                    children described in subparagraph (D) of 
                    subsection (a)(1);''; and
            (B) in subparagraph (D)--
                (i) in clause (i)--

                    (I) in subclause (I), by striking ``clause (ii)'' 
                and inserting ``clauses (ii), (iii), and (iv)''; and
                    (II) in subclause (II)--

                        (aa) by inserting ``received a payment for 
                    fiscal year 2015 under section 8003(b)(2)(E) (as 
                    such section was in effect for such fiscal year) 
                    and'' after ``agency that'';
                        (bb) by striking ``50 percent'' and inserting 
                    ``35 percent'';
                        (cc) by striking ``subsection (a)(1) and not 
                    less than 5,000'' and inserting the following: 
                    ``subsection (a)(1) and--
                        ``(aa) not less than 3,500''; and
                        (dd) by striking ``subsection (a)(1).'' and 
                    inserting the following: ``subsection (a)(1); or
                        ``(bb) not less than 7,000 of such children are 
                    children described in subparagraph (D) of 
                    subsection (a)(1).'';
                (ii) in clause (ii), by striking ``shall be 1.35.'' and 
            inserting the following: ``shall be--

                    ``(I) for fiscal year 2016, 1.35;
                    ``(II) for each of fiscal years 2017 and 2018, 
                1.38;
                    ``(III) for fiscal year 2019, 1.40;
                    ``(IV) for fiscal year 2020, 1.42; and
                    ``(V) for fiscal year 2021 and each fiscal year 
                thereafter, 1.45.''; and

                (iii) by adding at the end the following:
                ``(iii) Factor for children who live off base.--For 
            purposes of calculating the maximum amount described in 
            clause (i), the factor used in determining the weighted 
            student units under subsection (a)(2) with respect to 
            children described in subsection (a)(1)(D) shall be--

                    ``(I) for fiscal year 2016, .20;
                    ``(II) for each of fiscal years 2017 and 2018, .22;
                    ``(III) for each of fiscal years 2019 and 2020, 
                .25; and
                    ``(IV) for fiscal year 2021 and each fiscal year 
                thereafter--

                        ``(aa) .30 with respect to each of the first 
                    7,000 children; and
                        ``(bb) .25 with respect to the number of 
                    children that exceeds 7,000.
                ``(iv) Special rule.--Notwithstanding clauses (ii) and 
            (iii), for fiscal year 2020 or any succeeding fiscal year, 
            if the number of students who are children described in 
            subparagraphs (A) and (B) of subsection (a)(1) for a local 
            educational agency subject to this subparagraph exceeds 
            7,000 for such year or the number of students who are 
            children described in subsection (a)(1)(D) for such local 
            educational agency exceeds 12,750 for such year, then--

                    ``(I) the factor used, for the fiscal year for 
                which the determination is being made, to determine the 
                weighted student units under subsection (a)(2) with 
                respect to children described in subparagraphs (A) and 
                (B) of subsection (a)(1) shall be 1.40; and
                    ``(II) the factor used, for such fiscal year, to 
                determine the weighted student units under subsection 
                (a)(2) with respect to children described in subsection 
                (a)(1)(D) shall be .20.''.

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

                   Subtitle I--Decorations and Awards

    SEC. 581. POSTHUMOUS ADVANCEMENT OF COLONEL GEORGE E. ``BUD'' DAY, 
      UNITED STATES AIR FORCE, ON THE RETIRED LIST .
    (a) Advancement.--Colonel George E. ``Bud'' Day, United States Air 
Force (retired), is entitled to hold the rank of brigadier general 
while on the retired list of the Air Force.
    (b) Additional Benefits Not To Accrue.--The advancement of George 
E. ``Bud'' Day on the retired list of the Air Force under subsection 
(a) shall not affect the retired pay or other benefits from the United 
States to which George E. ``Bud'' Day would have been entitled based 
upon his military service or affect any benefits to which any other 
person may become entitled based on his military service.
    SEC. 582. AUTHORIZATION FOR AWARD OF MEDALS FOR ACTS OF VALOR 
      DURING CERTAIN CONTINGENCY OPERATIONS.
    (a) Authorization.--Notwithstanding the time limitations specified 
in sections 3744, 6248, and 8744 of title 10, United States Code, or 
any other time limitation with respect to the awarding of certain 
medals to persons who served in the Armed Forces, the President may 
award a medal specified in subsection (c) to a member or former member 
of the Armed Forces identified as warranting award of that medal 
pursuant to the review of valor award nominations for Operation 
Enduring Freedom, Operation Iraqi Freedom, Operation New Dawn, 
Operation Freedom's Sentinel, and Operation Inherent Resolve that was 
directed by the Secretary of Defense on January 7, 2016.
    (b) Award of Medal of Honor.--If, pursuant to the review referred 
to in subsection (a), the President decides to award to a member or 
former member of the Armed Forces the Medal of Honor, the medal may 
only be awarded after the Secretary of Defense submits to the 
Committees on Armed Services of the Senate and the House of 
Representatives a letter identifying the intended recipient of the 
Medal of Honor and the rationale for awarding the Medal of Honor to 
such intended recipient.
    (c) Medals.--The medals covered by subsection (a) are any of the 
following:
        (1) The Medal of Honor under section 3741, 6241, or 8741 of 
    title 10, United States Code.
        (2) The Distinguished-Service Cross under section 3742 of such 
    title.
        (3) The Navy Cross under section 6242 of such title.
        (4) The Air Force Cross under section 8742 of such title.
        (5) The Silver Star under section 3746, 6244, or 8746 of such 
    title.
    (d) Termination.--No medal may be awarded under the authority of 
this section after December 31, 2019.
    SEC. 583. AUTHORIZATION FOR AWARD OF THE MEDAL OF HONOR TO GARY M. 
      ROSE AND JAMES C. MCCLOUGHAN FOR ACTS OF VALOR DURING THE VIETNAM 
      WAR.
    (a) Gary M. Rose.--
        (1) Authorization.--Notwithstanding the time limitations 
    specified in section 3744 of title 10, United States Code, or any 
    other time limitation with respect to the awarding of certain 
    medals to persons who served in the Armed Forces, the President is 
    authorized to award the Medal of Honor under section 3741 of such 
    title to Gary M. Rose for the acts of valor described in paragraph 
    (2).
        (2) Acts of valor described.--The acts of valor referred to in 
    paragraph (1) are the actions of Gary M. Rose in Laos from 
    September 11 through 14, 1970, during the Vietnam War while a 
    member of the United States Army, Military Assistance Command 
    Vietnam-Studies and Observation Group (MACVSOG).
    (b) James C. McCloughan.--
        (1) Authorization.--Notwithstanding the time limitations 
    specified in section 3744 of title 10, United States Code, or any 
    other time limitation with respect to the awarding of certain 
    medals to persons who served in the Armed Forces, the President is 
    authorized to award the Medal of Honor under section 3741 of such 
    title to James C. McCloughan for the acts of valor described in 
    paragraph (2).
        (2) Acts of valor described.--The acts of valor referred to in 
    paragraph (1) are the actions of James C. McCloughan during combat 
    operations between May 13, 1969, and May 15, 1969, while serving as 
    a Combat Medic with Company C, 3d Battalion, 21st Infantry, 196th 
    Light Infantry Brigade, American Division, Republic of Vietnam, for 
    which he was previously awarded the Bronze Star Medal with ``V'' 
    Device.
    SEC. 584. AUTHORIZATION FOR AWARD OF DISTINGUISHED-SERVICE CROSS TO 
      FIRST LIEUTENANT MELVIN M. SPRUIELL FOR ACTS OF VALOR DURING 
      WORLD WAR II.
    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 of title 10, United States Code, 
or any other time limitation with respect to the awarding of certain 
medals to persons who served in the Armed Forces, the Secretary of the 
Army may award the Distinguished-Service Cross under section 3742 of 
such title to First Lieutenant Melvin M. Spruiell of the Army for the 
acts of valor during World War II described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of First Lieutenant Melvin M. Spruiell 
on June 10 and 11, 1944, as a member of the Army serving in France with 
the 377th Parachute Field Artillery, 101st Airborne Division.
    SEC. 585. AUTHORIZATION FOR AWARD OF THE DISTINGUISHED SERVICE 
      CROSS TO CHAPLAIN (FIRST LIEUTENANT) JOSEPH VERBIS LAFLEUR FOR 
      ACTS OF VALOR DURING WORLD WAR II.
    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the Secretary of the Army may award the 
Distinguished Service Cross under section 3742 of that title to 
Chaplain (First Lieutenant) Joseph Verbis LaFleur for the acts of valor 
referred to in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Chaplain (First Lieutenant) Joseph 
Verbis LaFleur while interned as a prisoner-of- war by Japan from 
December 30, 1941, to September 7, 1944.
    SEC. 586. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO CERTAIN ASIAN 
      AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER WAR VETERANS.
    (a) Review Required.--The Secretary of each military department 
shall review the service records of each Asian American and Native 
American Pacific Islander war veteran described in subsection (b) to 
determine whether that veteran should be awarded the Medal of Honor.
    (b) Covered Veterans.--The Asian American and Native American 
Pacific Islander war veterans whose service records are to be reviewed 
under subsection (a) are any former members of the Armed Forces whose 
service records identify them as an Asian American or Native American 
Pacific Islander war veteran who was awarded the Distinguished-Service 
Cross, the Navy Cross, or the Air Force Cross during the Korean War or 
the Vietnam War.
    (c) Consultations.--In carrying out the review under subsection 
(a), the Secretary of each military department shall consult with such 
veterans service organizations as the Secretary considers appropriate.
    (d) Recommendations Based on Review.--If the Secretary concerned 
determines, based upon the review under subsection (a) of the service 
records of any Asian American or Native American Pacific Islander war 
veteran, that the award of the Medal of Honor to that veteran is 
warranted, the Secretary shall submit to the President a recommendation 
that the President award the Medal of Honor to that veteran.
    (e) Authority to Award Medal of Honor.--A Medal of Honor may be 
awarded to an Asian American or Native American Pacific Islander war 
veteran in accordance with a recommendation of the Secretary concerned 
under subsection (d).
    (f) Congressional Notification.--No Medal of Honor may be awarded 
pursuant to subsection (e) until the Secretary of Defense submits to 
the Committees on Armed Services of the Senate and the House of 
Representatives notice of the recommendations under subsection (d), 
including the name of each Asian American or Native American Pacific 
Islander war veteran recommended to be awarded a Medal of Honor and the 
rationale for such recommendation.
    (g) Waiver of Time Limitations.--An award of the Medal of Honor may 
be made under subsection (e) without regard to--
        (1) section 3744, 6248, or 8744 of title 10, United States 
    Code, as applicable; and
        (2) any regulation or other administrative restriction on--
            (A) the time for awarding the Medal of Honor; or
            (B) the awarding of the Medal of Honor for service for 
        which a Distinguished-Service Cross, Navy Cross, or Air Force 
        Cross has been awarded.
    (h) Definition.--In this section, the term ``Native American 
Pacific Islander'' means a Native Hawaiian or Native American Pacific 
Islander, as those terms are defined in section 815 of the Native 
American Programs Act of 1974 (42 U.S.C. 2992c).

          Subtitle J--Miscellaneous Reports and Other Matters

    SEC. 591. REPEAL OF REQUIREMENT FOR A CHAPLAIN AT THE UNITED STATES 
      AIR FORCE ACADEMY APPOINTED BY THE PRESIDENT.
    (a) Repeal.--Section 9337 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 903 of such title is amended by striking the item related to 
section 9337.
    SEC. 592. EXTENSION OF LIMITATION ON REDUCTION IN NUMBER OF 
      MILITARY AND CIVILIAN PERSONNEL ASSIGNED TO DUTY WITH SERVICE 
      REVIEW AGENCIES.
    Section 1559(a) of title 10, United States Code, is amended by 
striking ``December 31, 2016'' and inserting ``December 31, 2019''.
    SEC. 593. ANNUAL REPORTS ON PROGRESS OF THE ARMY AND THE MARINE 
      CORPS IN INTEGRATING WOMEN INTO MILITARY OCCUPATIONAL 
      SPECIALITIES AND UNITS RECENTLY OPENED TO WOMEN.
    (a) Reports Required.--Not later than April 1, 2017, and each year 
thereafter through 2020, the Chief of Staff of the Army and the 
Commandant of the Marine Corps shall each submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the current status of the implementation by the Army and the Marine 
Corps, respectively, of the policy of Secretary of Defense dated March 
9, 2016, to open to women military occupational specialties and units 
previously closed to women.
    (b) Elements.--Each report shall include, current as of the date of 
such report and for the Armed Force covered by such report, the 
following:
        (1) The status of gender-neutral standards throughout the Entry 
    Level Training continuum.
        (2) The propensity of applicants to apply for and access into 
    newly-opened ground combat programs, by gender and program.
        (3) Success rates in Initial Screening Tests and Military 
    Occupational Speciality (MOS) Classification Standards for newly-
    opened ground combat military occupational specialties, by gender.
        (4) Attrition rates and the top three causes of attrition 
    throughout the Entry Level Training continuum, by gender and 
    military occupational specialty.
        (5) Reclassification rates and the top three causes of 
    reclassification throughout the Entry Level Training continuum, by 
    gender and military occupational specialty.
        (6) Injury rates and the top five causes of injury throughout 
    the Entry Level Training continuum, by gender and military 
    occupational specialty.
        (7) Injury rates and nondeployability rates in newly-opened 
    ground combat military occupational specialties, by gender and 
    military occupational specialty.
        (8) Lateral move approval rates into newly-opened military 
    occupational specialties, by gender and military occupational 
    specialty.
        (9) Reenlistment and retention rates in newly-opened ground 
    combat military occupational specialties, by gender and military 
    occupational specialty.
        (10) Promotion rates in newly-opened ground combat military 
    occupational specialties, by grade and gender.
        (11) Actions taken to address matters relating to equipment 
    sizing and supply, and facilities, in connection with the 
    implementation by such Armed Force of the policy referred to in 
    paragraph (1).
    (c) Applicability to SOCOM.--In addition to the reports required by 
subsection (a), the Commander of the United States Special Operations 
Command shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives, on the dates provided for in 
subsection (a), a report on the current status of the implementation by 
the United States Special Operations Command of the policy of Secretary 
of Defense referred to in subsection (a). Each report shall include the 
matters specified in subsection (b) with respect to the United States 
Special Operations Command.
    SEC. 594. REPORT ON FEASABILITY OF ELECTRONIC TRACKING OF 
      OPERATIONAL ACTIVE-DUTY SERVICE PERFORMED BY MEMBERS OF THE READY 
      RESERVE OF THE ARMED FORCES.
    Not later than March 1, 2017, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives a report on the feasability of establishing an 
electronic means by which members of the Ready Reserve of the Armed 
Forces can track their operational active-duty service performed after 
January 28, 2008, under section 12301(a), 12301(d), 12301(g), 12302, or 
12304 of title 10, United States Code. The means assessed for purposes 
of the report shall include a tour calculator that specifies early 
retirement credit authorized for each qualifying tour of active duty, 
as well as cumulative early reserve retirement credit authorized to 
date under section 12731(f) of such title.
    SEC. 595. REPORT ON DISCHARGE BY WARRANT OFFICERS OF PILOT AND 
      OTHER FLIGHT OFFICER POSITIONS IN THE NAVY, MARINE CORPS, AND AIR 
      FORCE CURRENTLY DISCHARGED BY COMMISSIONED OFFICERS.
    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Navy and the Secretary of 
the Air Force shall each submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the feasibility 
and advisability of the discharge by warrant officers of pilot and 
other flight officer positions in the Armed Forces under the 
jurisdiction of such Secretary that are currently discharged by 
commissioned officers.
    (b) Elements.--Each report under subsection (a) shall set forth, 
for each Armed Force covered by such report, the following:
        (1) An assessment of the feasibility and advisability of the 
    discharge by warrant officers of pilot and other flight officer 
    positions that are currently discharged by commissioned officers.
        (2) An identification of each such position, if any, for which 
    the discharge by warrant officers is assessed to be feasible and 
    advisable.
    SEC. 596. BODY MASS INDEX TEST.
    (a) Review Required.--Each Secretary of a military department shall 
review--
        (1) the current body mass index test procedure used by each 
    Armed Force under the jurisdiction of that Secretary; and
        (2) other methods to measure body fat with a more holistic 
    health and wellness approach.
    (b) Elements.--The review required under subsection (a) shall--
        (1) address nutrition counseling;
        (2) determine the best methods to be used by the Armed Forces 
    to assess body fat percentages; and
        (3) improve the accuracy of body fat measurements.
    SEC. 597. REPORT ON CAREER PROGRESSION TRACKS OF THE ARMED FORCES 
      FOR WOMEN IN COMBAT ARMS UNITS.
    Not later than 30 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to Congress a report setting 
forth a description, for each Armed Force, of the following:
        (1) The career progression track for entry level women as 
    officers in combat arms units of such Armed Force.
        (2) The career progression track for laterally transferred 
    women as officers in combat arms units of such Armed Force.
        (3) The career progression track for entry level women as 
    enlisted members in combat arms units of such Armed Force.
        (4) The career progression track for laterally transferred 
    women as enlisted members in combat arms units of such Armed Force.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

        Part I--Amendments in Connection With Retired Pay Reform

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

                         Part II--Other Matters

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

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

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Pay and Allowances

    SEC. 601. FISCAL YEAR 2017 INCREASE IN MILITARY BASIC PAY.
    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2017 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2017, the rates 
of monthly basic pay for members of the uniformed services are 
increased by 2.1 percent.
    SEC. 602. PUBLICATION BY DEPARTMENT OF DEFENSE OF ACTUAL RATES OF 
      BASIC PAY PAYABLE TO MEMBERS OF THE ARMED FORCES BY PAY GRADE FOR 
      ANNUAL OR OTHER PAY PERIODS.
    Any pay table published or otherwise issued by the Department of 
Defense to indicate the rates of basic pay of the Armed Forces in 
effect for members of the Armed Forces for a calendar year or other 
period shall state the rate of basic pay to be received by members in 
each pay grade for such year or period as specified or otherwise 
provided by applicable law, including any rate to be so received 
pursuant during such year or period by the operation of a ceiling under 
section 203(a)(2) of title 37, United States Code, or a similar 
provision in an annual defense authorization Act.
    SEC. 603. EXTENSION OF AUTHORITY TO PROVIDE TEMPORARY INCREASE IN 
      RATES OF BASIC ALLOWANCE FOR HOUSING UNDER CERTAIN CIRCUMSTANCES.
    Section 403(b)(7)(E) of title 37, United States Code, is amended by 
striking ``December 31, 2016'' and inserting ``December 31, 2017''.
    SEC. 604. REPORTS ON A NEW SINGLE-SALARY PAY SYSTEM FOR MEMBERS OF 
      THE ARMED FORCES.
    (a) Report on Plan To Implement New Pay Structure.--Not later than 
March 1, 2017, the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and the House of Representative a 
report that sets forth the following:
        (1) The military pay tables as of January 1, 2017, reflecting 
    the Regular Military Compensation of members of the Armed Forces as 
    of that date in the range of grades, dependency statuses, and 
    assignment locations.
        (2) A comprehensive description of the manner in which the 
    Department of Defense would begin, by not later than January 1, 
    2018, to implement a transition between the current pay structure 
    for members of the Armed Forces and a new pay structure for members 
    of the Armed Forces as provided for by this section.
    (b) Report on Elements of New Pay Structure.--Not later than 
January 1, 2018, the Secretary shall submit to the Committees on Armed 
Services of the Senate and the House of Representative a report that 
sets forth the following:
        (1) A description and comparison of the current pay structure 
    for members of the Armed Forces and a new pay structure for members 
    of the Armed Forces, including new pay tables, that uses a single-
    salary pay system (as adjusted by the same cost-of-living 
    adjustment that the Department of Defense uses worldwide for 
    civilian employees) based on the assumptions in subsection (c).
        (2) A proposal for such legislative and administrative action 
    as the Secretary considers appropriate to implement the new pay 
    structure, and to provide for a transition between the current pay 
    structure and the new pay structure.
        (3) A comprehensive schedule for the implementation of the new 
    pay structure and for the transition between the current pay 
    structure and the new pay structure, including all significant 
    deadlines.
    (c) New Pay Structure.--The new pay structure described pursuant to 
subsection (b)(1) shall assume the repeal of the basic allowance for 
housing and basic allowance subsistence for members of the Armed Forces 
in favor of a single-salary pay system, and shall include the 
following:
        (1) A statement of pay comparability with the civilian sector 
    adequate to effectively recruit and retain a high-quality All-
    Volunteer Force.
        (2) The level of pay necessary by grade and years of service to 
    meet pay comparability as described in paragraph (1) in order to 
    recruit and retain a high-quality All-Volunteer Force.
        (3) Necessary modifications to the military retirement system, 
    including the retired pay multiplier, to ensure that members of the 
    Armed Forces under the pay structure are situated similarly to 
    where they would otherwise be under the military retirement system 
    that will take effect on January 1, 2018, by reason part I of 
    subtitle D of the National Defense Authorization Act for Fiscal 
    Year 2016 (Public Law 114-92; 129 Stat. 842), and the amendments 
    made by that part.
    (d) Cost Containment.--The single-salary pay system under the new 
pay structure provided for by this section shall be a single-salary pay 
system that will result in no or minimal additional costs to the 
Government, both in terms of annual discretionary outlays and 
entitlements, when compared with the continuation of the current pay 
system for members of the Armed Forces.

           Subtitle B--Bonuses and Special and Incentive Pays

    SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
      AUTHORITIES FOR RESERVE FORCES.
    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
        (1) Section 308b(g), relating to Selected Reserve reenlistment 
    bonus.
        (2) Section 308c(i), relating to Selected Reserve affiliation 
    or enlistment bonus.
        (3) Section 308d(c), relating to special pay for enlisted 
    members assigned to certain high-priority units.
        (4) Section 308g(f)(2), relating to Ready Reserve enlistment 
    bonus for persons without prior service.
        (5) Section 308h(e), relating to Ready Reserve enlistment and 
    reenlistment bonus for persons with prior service.
        (6) Section 308i(f), relating to Selected Reserve enlistment 
    and reenlistment bonus for persons with prior service.
        (7) Section 478a(e), relating to reimbursement of travel 
    expenses for inactive-duty training outside of normal commuting 
    distance.
        (8) Section 910(g), relating to income replacement payments for 
    reserve component members experiencing extended and frequent 
    mobilization for active duty service.
    SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
      AUTHORITIES FOR HEALTH CARE PROFESSIONALS.
    (a) Title 10 Authorities.--The following sections of title 10, 
United States Code, are amended by striking ``December 31, 2016'' and 
inserting ``December 31, 2017'':
        (1) Section 2130a(a)(1), relating to nurse officer candidate 
    accession program.
        (2) Section 16302(d), relating to repayment of education loans 
    for certain health professionals who serve in the Selected Reserve.
    (b) Title 37 Authorities.--The following sections of title 37, 
United States Code, are amended by striking ``December 31, 2016'' and 
inserting ``December 31, 2017'':
        (1) Section 302c-1(f), relating to accession and retention 
    bonuses for psychologists.
        (2) Section 302d(a)(1), relating to accession bonus for 
    registered nurses.
        (3) Section 302e(a)(1), relating to incentive special pay for 
    nurse anesthetists.
        (4) Section 302g(e), relating to special pay for Selected 
    Reserve health professionals in critically short wartime 
    specialties.
        (5) Section 302h(a)(1), relating to accession bonus for dental 
    officers.
        (6) Section 302j(a), relating to accession bonus for pharmacy 
    officers.
        (7) Section 302k(f), relating to accession bonus for medical 
    officers in critically short wartime specialties.
        (8) Section 302l(g), relating to accession bonus for dental 
    specialist officers in critically short wartime specialties.
    SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES 
      FOR NUCLEAR OFFICERS.
    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
        (1) Section 312(f), relating to special pay for nuclear-
    qualified officers extending period of active service.
        (2) Section 312b(c), relating to nuclear career accession 
    bonus.
        (3) Section 312c(d), relating to nuclear career annual 
    incentive bonus.
    SEC. 614. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO TITLE 37 
      CONSOLIDATED SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES.
    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
        (1) Section 331(h), relating to general bonus authority for 
    enlisted members.
        (2) Section 332(g), relating to general bonus authority for 
    officers.
        (3) Section 333(i), relating to special bonus and incentive pay 
    authorities for nuclear officers.
        (4) Section 334(i), relating to special aviation incentive pay 
    and bonus authorities for officers.
        (5) Section 335(k), relating to special bonus and incentive pay 
    authorities for officers in health professions.
        (6) Section 336(g), relating to contracting bonus for cadets 
    and midshipmen enrolled in the Senior Reserve Officers' Training 
    Corps.
        (7) Section 351(h), relating to hazardous duty pay.
        (8) Section 352(g), relating to assignment pay or special duty 
    pay.
        (9) Section 353(i), relating to skill incentive pay or 
    proficiency bonus.
        (10) Section 355(h), relating to retention incentives for 
    members qualified in critical military skills or assigned to high 
    priority units.
    SEC. 615. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
      OTHER TITLE 37 BONUSES AND SPECIAL PAYS.
    The following sections of title 37, United States Code, are amended 
by striking ``December 31, 2016'' and inserting ``December 31, 2017'':
        (1) Section 301b(a), relating to aviation officer retention 
    bonus.
        (2) Section 307a(g), relating to assignment incentive pay.
        (3) Section 308(g), relating to reenlistment bonus for active 
    members.
        (4) Section 309(e), relating to enlistment bonus.
        (5) Section 316a(g), relating to incentive pay for members of 
    precommissioning programs pursuing foreign language proficiency.
        (6) Section 324(g), relating to accession bonus for new 
    officers in critical skills.
        (7) Section 326(g), relating to incentive bonus for conversion 
    to military occupational specialty to ease personnel shortage.
        (8) Section 327(h), relating to incentive bonus for transfer 
    between Armed Forces.
        (9) Section 330(f), relating to accession bonus for officer 
    candidates.
    SEC. 616. AVIATION INCENTIVE PAY AND BONUS MATTERS.
    (a) Maximum Incentive Pay and Bonus Amounts.--Paragraph (1) of 
section 334(c) of title 37, United States Code, is amended by striking 
subparagraphs (A) and (B) and inserting the following new 
subparagraphs:
            ``(A) aviation incentive pay under subsection (a) shall be 
        paid at a monthly rate not to exceed $1,000 per month; and
            ``(B) an aviation bonus under subsection (b) may not exceed 
        $35,000 for each 12-month period of obligated service agreed to 
        under subsection (d).''.
    (b) Annual Business Case for Payment of Aviation Bonus.--Such 
section is further amended--
        (1) by redesignating paragraphs (2) and (3) as paragraphs (3) 
    and (4), respectively; and
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) Annual business case for payment of aviation bonus 
    amounts.--
            ``(A) In general.--The Secretary concerned shall determine 
        the amount of the aviation bonus payable under paragraph (1)(B) 
        under agreements entered into under subsection (d) during a 
        fiscal year solely through a business case analysis of the 
        amount required to be paid under such agreements in order to 
        address anticipated manning shortfalls for such fiscal year by 
        aircraft type category.
            ``(B) Budget justification documents.--The budget 
        justification documents in support of the budget of the 
        President for a fiscal year (as submitted to Congress pursuant 
        to section 1105 of title 31) shall set forth for each uniformed 
        service the following:
                ``(i) The amount requested for the payment of aviation 
            bonuses under subsection (b) using amounts authorized to be 
            appropriated for the fiscal year concerned by aircraft type 
            category.
                ``(ii) The business case analysis supporting the amount 
            so requested by aircraft type category.
                ``(iii) For each aircraft type category, whether or not 
            the amount requested will permit the payment during the 
            fiscal year concerned of the maximum amount of the aviation 
            bonus authorized by paragraph (1)(B).
                ``(iv) If any amount requested is to address manning 
            shortfalls, a description of any plans of the Secretary 
            concerned to address such shortfalls by nonmonetary 
            means.''.
    SEC. 617. CONFORMING AMENDMENT TO CONSOLIDATION OF SPECIAL PAY, 
      INCENTIVE PAY, AND BONUS AUTHORITIES.
    Section 332(c)(1)(B) of title 37, United States Code, is amended by 
striking ``$12,000'' and inserting ``$20,000''.
    SEC. 618. TECHNICAL AMENDMENTS RELATING TO 2008 CONSOLIDATION OF 
      CERTAIN SPECIAL PAY AUTHORITIES.
    (a) Family Care Plans.--Section 586 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 
991 note) is amended by inserting ``or 351'' after ``section 310''.
    (b) Dependents' Medical Care.--Section 1079(g)(1) of title 10, 
United States Code, is amended by inserting ``or 351'' after ``section 
310''.
    (c) Retention on Active Duty During Disability Evaluation 
Process.--Section 1218(d)(1) of title 10, United States Code, is 
amended by inserting ``or 351'' after ``section 310''.
    (d) Storage Space.--Section 362(1) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 
U.S.C. 2825 note) is amended by inserting ``, or paragraph (1) or (3) 
of section 351(a),'' after ``section 310''.
    (e) Student Assistance Programs.--Sections 455(o)(3)(B) and 
465(a)(2)(D) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(o)(3)(B), 1087ee(a)(2)(D)) are amended by inserting ``, or 
paragraph (1) or (3) of section 351(a),'' after ``section 310''.
    (f) Armed Forces Retirement Home.--Section 1512(a)(3)(A) of the 
Armed Forces Retirement Home Act of 1991 (24 U.S.C. 412(a)(3)(A)) is 
amended by inserting ``or 351'' after ``section 310''.
    (g) Veterans of Foreign Wars Membership.--Section 230103(3) of 
title 36, United States Code, is amended by inserting ``or 351'' after 
``section 310''.
    (h) Military Pay and Allowances.--Title 37, United States Code, is 
amended--
        (1) in section 212(a), by inserting ``, or paragraph (1) or (3) 
    of section 351(a),'' after ``section 310'';
        (2) in section 402a(b)(3)(B), by inserting ``or 351'' after 
    ``section 310'';
        (3) in section 481a(a), by inserting ``or 351'' after ``section 
    310'';
        (4) in section 907(d)(1)(H), by inserting ``or 351'' after 
    ``section 310''; and
        (5) in section 910(b)(2)(B), by inserting ``, or paragraph (1) 
    or (3) of section 351(a),'' after ``section 310''.
    (i) Exclusions From Income for Purpose of Supplemental Security 
Income.--Section 1612(b)(20) of the Social Security Act (42 U.S.C. 
1382a(b)(20)) is amended by inserting ``, or paragraph (1) or (3) of 
section 351(a),'' after ``section 310''.
    (j) Exclusions From Income for Purpose of Head Start Program.--
Section 645(a)(3)(B)(i) of the Head Start Act (42 U.S.C. 
9840(a)(3)(B)(i)) is amended by inserting ``or 351'' after ``section 
310''.
    (k) Exclusions From Gross Income for Federal Income Tax Purposes.--
Section 112(c)(5)(B) of the Internal Revenue Code of 1986 is amended by 
inserting ``, or paragraph (1) or (3) of section 351(a),'' after 
``section 310''.

            Subtitle C--Travel and Transportation Allowances

    SEC. 621. MAXIMUM REIMBURSEMENT AMOUNT FOR TRAVEL EXPENSES OF 
      MEMBERS OF THE RESERVES ATTENDING INACTIVE DUTY TRAINING OUTSIDE 
      OF NORMAL COMMUTING DISTANCES.
    Section 478a(c) of title 37, United States Code, is amended--
        (1) by striking ``The amount'' and inserting the following: 
    ``(1) Except as provided by paragraph (2), the amount''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The Secretary concerned may authorize, on a case-by-case 
basis, a higher reimbursement amount for a member under subsection (a) 
when the member--
        ``(A) resides--
            ``(i) in the same State as the training location; and
            ``(ii) outside of an urbanized area with a population of 
        50,000 or more, as determined by the Bureau of the Census; and
        ``(B) is required to commute to a training location--
            ``(i) using an aircraft or boat on account of limited or 
        nonexistent vehicular routes to the training location or other 
        geographical challenges; or
            ``(ii) from a permanent residence located more than 75 
        miles from the training location.''.

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

        PART I--AMENDMENTS IN CONNECTION WITH RETIRED PAY REFORM

    SEC. 631. ELECTION PERIOD FOR MEMBERS IN THE SERVICE ACADEMIES AND 
      INACTIVE RESERVES TO PARTICIPATE IN THE MODERNIZED RETIREMENT 
      SYSTEM.
    (a) In General.--Paragraph (4)(C) of section 1409(b) of title 10, 
United States Code, is amended--
        (1) in clause (i), by striking ``and (iii)'' and inserting ``, 
    (iii), (iv), and (v)''; and
        (2) by adding at the end the following new clauses:
                ``(iv) Cadets and midshipmen, etc.--A member of a 
            uniformed service who serves as a cadet, midshipman, or 
            member of the Senior Reserve Officers' Training Corps 
            during the election period specified in clause (i) shall 
            make the election described in subparagraph (B)--

                    ``(I) on or after the date on which such cadet, 
                midshipman, or member of the Senior Reserve Officers' 
                Training Corps is appointed as a commissioned officer 
                or otherwise begins to receive basic pay; and
                    ``(II) not later than 30 days after such date or 
                the end of such election period, whichever is later.

                ``(v) Inactive reserves.--A member of a reserve 
            component who is not in an active status during the 
            election period specified in clause (i) shall make the 
            election described in subparagraph (B)--

                    ``(I) on or after the date on which such member is 
                transferred from an inactive status to an active status 
                or active duty; and
                    ``(II) not later than 30 days after such date or 
                the end of such election period, whichever is later.''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on January 1, 2018, immediately after the coming into 
effect of the amendments made by section 631(a) of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
842), to which the amendments made by subsection (a) relate.
    SEC. 632. EFFECT OF SEPARATION OF MEMBERS FROM THE UNIFORMED 
      SERVICES ON PARTICIPATION IN THE THRIFT SAVINGS PLAN.
    Effective as of the date of the enactment of this Act, paragraph 
(2) of section 632(c) of the National Defense Authorization Act for 
Fiscal Year 2016 (Public Law 114-92; 129 Stat. 847) is repealed, and 
the amendment proposed to be made by that paragraph shall not be made 
or go into effect.
    SEC. 633. CONTINUATION PAY FOR FULL THRIFT SAVINGS PLAN MEMBERS WHO 
      HAVE COMPLETED 8 TO 12 YEARS OF SERVICE.
    (a) Continuation Pay.--Subsection (a) of section 356 of title 37, 
United States Code, is amended--
        (1) by striking paragraph (1) and inserting the following new 
    paragraph (1):
        ``(1) has completed not less than 8 and not more than 12 years 
    of service in a uniformed service; and''; and
        (2) in paragraph (2), by striking ``an additional 4 years'' and 
    inserting ``not less than 3 additional years''.
    (b) Payment Amount.--Subsection (b) of such section is amended by 
striking all the matter preceding paragraph (1) and inserting the 
following:
    ``(b) Payment Amount.--The Secretary concerned shall determine the 
payment amount under this section as a multiple of a full TSP member's 
monthly basic pay. The multiple for a full TSP member who is a member 
of a regular component or a reserve component, if the member is 
performing active Guard and Reserve duty (as defined in section 
101(d)(6) of title 10), shall not be less than 2.5 times the member's 
monthly basic pay. The multiple for a full TSP member who is a member 
of a reserve component not performing active Guard or Reserve duty (as 
so defined) shall not be less than 0.5 times the monthly basic pay to 
which the member would be entitled if the member were a member of a 
regular component. The maximum amount the Secretary concerned may pay a 
member under this section is--''.
    (c) Timing of Payment.--Subsection (d) of such section is amended 
to read as follows:
    ``(d) Timing of Payment.--The Secretary concerned shall pay 
continuation pay under subsection (a) to a full TSP member when the 
member has completed not less than 8 and not more than 12 years of 
service in a uniformed service.''.
    (d) Conforming and Clerical Amendments.--
        (1) Heading.--The heading of such section is amended to read as 
    follows:
``Sec. 356. Continuation pay: full TSP members with 8 to 12 years of 
   service''.
        (2) Table of sections.--The table of sections at the beginning 
    of chapter 5 of such title is amended by striking the item relating 
    to section 356 and inserting the following new item:

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

    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2018, immediately after the coming into effect of 
the amendments providing for section 356 of title 37, United States 
Code, to which the amendments made by this section relate.
    SEC. 634. COMBAT-RELATED SPECIAL COMPENSATION COORDINATING 
      AMENDMENT.
    (a) In General.--Section 1413a(b)(3)(B) of title 10, United States 
Code, is amended by striking `` 2\1/2\ percent'' and inserting ``the 
retired pay percentage (determined for the member under section 1409(b) 
of this title)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2018, immediately after the coming into 
effect of the amendments made by part I of subtitle D of title VI of 
the National Defense Authorization Act for Fiscal Year 2016 (Public Law 
114-92; 129 Stat. 842), to which the amendment made by subsection (a) 
relates.

                         PART II--OTHER MATTERS

    SEC. 641. USE OF MEMBER'S CURRENT PAY GRADE AND YEARS OF SERVICE 
      AND RETIRED PAY COST-OF-LIVING ADJUSTMENTS, RATHER THAN FINAL 
      RETIREMENT PAY GRADE AND YEARS OF SERVICE, IN A DIVISION OF 
      PROPERTY INVOLVING DISPOSABLE RETIRED PAY.
    (a) In General.--Section 1408(a)(4) of title 10, United States 
Code, is amended--
        (1) by redesignating subparagraphs (A), (B), (C), (D) as 
    clauses (i), (ii), (iii), (iv), respectively;
        (2) by inserting ``(A)'' after ``(4)'';
        (3) in subparagraph (A), as designated by paragraph (2), by 
    inserting ``(as determined pursuant to subparagraph (B)'' after 
    ``member is entitled''; and
        (4) by adding at the end the following new subparagraph:
        ``(B) For purposes of subparagraph (A), the total monthly 
    retired pay to which a member is entitled shall be--
            ``(i) the amount of basic pay payable to the member for the 
        member's pay grade and years of service at the time of the 
        court order, as increased by
            ``(ii) each cost-of-living adjustment that occurs under 
        section 1401a(b) of this title between the time of the court 
        order and the time of the member's retirement using the 
        adjustment provisions under that section applicable to the 
        member upon retirement.''.
    (b) Application of Amendments.--The amendments made by subsection 
(a) shall apply with respect to any division of property as part of a 
final decree of divorce, dissolution, annulment, or legal separation 
involving a member of the Armed Forces to which section 1408 of title 
10, United States Code, applies that becomes final after the date of 
the enactment of this Act.
    SEC. 642. EQUAL BENEFITS UNDER SURVIVOR BENEFIT PLAN FOR SURVIVORS 
      OF RESERVE COMPONENT MEMBERS WHO DIE IN THE LINE OF DUTY DURING 
      INACTIVE-DUTY TRAINING.
    (a) Treatment of Inactive-Duty Training in Same Manner as Active 
Duty.--Section 1451(c)(1)(A) of title 10, United States Code, is 
amended--
        (1) in clause (i)--
            (A) by inserting ``or 1448(f)'' after ``section 1448(d)''; 
        and
            (B) by inserting ``or (iii)'' after ``clause (ii)''; and
        (2) in clause (iii)--
            (A) by striking ``section 1448(f) of this title'' and 
        inserting ``section 1448(f)(1)(A) of this title by reason of 
        the death of a member or former member not in line of duty''; 
        and
            (B) by striking ``active service'' and inserting 
        ``service''.
    (b) Consistent Treatment of Dependent Children.--Paragraph (2) of 
section 1448(f) of title 10, United States Code, is amended to read as 
follows:
        ``(2) Dependent children annuity.--
            ``(A) Annuity when no eligible surviving spouse.--In the 
        case of a person described in paragraph (1), the Secretary 
        concerned shall pay an annuity under this subchapter to the 
        dependent children of that person under section 1450(a)(2) of 
        this title as applicable.
            ``(B) Optional annuity when there is an eligible surviving 
        spouse.--The Secretary may pay an annuity under this subchapter 
        to the dependent children of a person described in paragraph 
        (1) under section 1450(a)(3) of this title, if applicable, 
        instead of paying an annuity to the surviving spouse under 
        paragraph (1), if the Secretary concerned, in consultation with 
        the surviving spouse, determines it appropriate to provide an 
        annuity for the dependent children under this paragraph instead 
        of an annuity for the surviving spouse under paragraph (1).''.
    (c) Deemed Elections.--Section 1448(f) of title 10, United States 
Code, is further amended by adding at the end the following new 
paragraph:
        ``(5) Deemed election to provide an annuity for dependent.--
    Paragraph (6) of subsection (d) shall apply in the case of a member 
    described in paragraph (1) who dies after November 23, 2003, when 
    no other annuity is payable on behalf of the member under this 
    subchapter.''.
    (d) Availability of Special Survivor Indemnity Allowance.--Section 
1450(m)(1)(B) of title 10, United States Code, is amended by inserting 
``or (f)'' after ``subsection (d)''.
    (e) Application of Amendments.--
        (1) Payment.--No annuity benefit under subchapter II of chapter 
    73 of title 10, United States Code, shall accrue to any person by 
    reason of the amendments made by this section for any period before 
    the date of the enactment of this Act.
        (2) Elections.--For any death that occurred before the date of 
    the enactment of this Act with respect to which an annuity under 
    such subchapter is being paid (or could be paid) to a surviving 
    spouse, the Secretary concerned may, within six months of that date 
    and in consultation with the surviving spouse, determine it 
    appropriate to provide an annuity for the dependent children of the 
    decedent under paragraph 1448(f)(2)(B) of title 10, United States 
    Code, as added by subsection (b), instead of an annuity for the 
    surviving spouse. Any such determination and resulting change in 
    beneficiary shall be effective as of the first day of the first 
    month following the date of the determination.
    SEC. 643. AUTHORITY TO DEDUCT SURVIVOR BENEFIT PLAN PREMIUMS FROM 
      COMBAT-RELATED SPECIAL COMPENSATION WHEN RETIRED PAY NOT 
      SUFFICIENT.
    (a) Authority.--Subsection (d) of section 1452 of title 10, United 
States Code, is amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) Deduction from combat-related special compensation when 
    retired pay not adequate.--In the case of a person who has elected 
    to participate in the Plan and who has been awarded both retired 
    pay and combat-related special compensation under section 1413a of 
    this title, if a deduction from the person's retired pay for any 
    period cannot be made in the full amount required, there shall be 
    deducted from the person's combat-related special compensation in 
    lieu of deduction from the person's retired pay the amount that 
    would otherwise have been deducted from the person's retired pay 
    for that period.''.
    (b) Conforming Amendments to Section 1452.--
        (1) Subsection (d) of such section is further amended--
            (A) in the subsection heading, by inserting ``or Not 
        Sufficient'' after ``Not Paid'';
            (B) in paragraph (1), by inserting before the period at the 
        end the following: ``, except to the extent that the required 
        deduction is made pursuant to paragraph (2)''; and
            (C) in paragraph (3), as redesignated by subsection (a)(1), 
        by striking ``Paragraph (1) does not'' and inserting 
        ``Paragraphs (1) and (2) do not''.
        (2) Subsection (f)(1) of such section is amended by inserting 
    ``or combat-related special compensation'' after ``from retired 
    pay''.
        (3) Subsection (g)(4) of such section is amended--
            (A) in the paragraph heading, by inserting ``or crsc'' 
        after ``retired pay''; and
            (B) by inserting ``or combat-related special compensation'' 
        after ``from the retired pay''.
    (c) Conforming Amendments to Other Provisions of SBP Statute.--
        (1) Section 1449(b)(2) of such title is amended--
            (A) in the paragraph heading, by inserting ``or crsc'' 
        after ``retired pay''; and
            (B) by inserting ``or combat-related special compensation'' 
        after ``from retired pay''.
        (2) Section 1450(e) of such title is amended--
            (A) in the subsection heading, by inserting ``or CRSC'' 
        after ``Retired Pay''; and
            (B) in paragraph (1), by inserting ``or combat-related 
        special compensation'' after ``from the retired pay''.
    SEC. 644. EXTENSION OF ALLOWANCE COVERING MONTHLY PREMIUM FOR 
      SERVICEMEMBERS' GROUP LIFE INSURANCE WHILE IN CERTAIN OVERSEAS 
      AREAS TO COVER MEMBERS IN ANY COMBAT ZONE OR OVERSEAS DIRECT 
      SUPPORT AREA.
    (a) Expansion of Coverage.--Subsection (a) of section 437 of title 
37, United States Code, is amended--
        (1) by inserting ``(1)'' before ``In the case of'';
        (2) by striking ``who serves in the theater of operations for 
    Operation Enduring Freedom or Operation Iraqi Freedom'' and 
    inserting ``who serves in a designated duty assignment''; and
        (3) by adding at the end the following new paragraph:
    ``(2) In this subsection, the term `designated duty assignment' 
means a permanent or temporary duty assignment outside the United 
States or its possessions in support of a contingency operation in an 
area that--
        ``(A) has been designated a combat zone; or
        ``(B) is in direct support of an area that has been designated 
    a combat zone.''.
    (b) Conforming Amendments.--
        (1) Cross-reference.--Subsection (b) of such section is amended 
    by striking ``theater of operations'' and inserting ``designated 
    duty assignment''.
        (2) Section heading.--The heading of such section is amended to 
    read as follows:
``Sec. 437. Allowance to cover monthly premiums for Servicemembers' 
   Group Life Insurance: members serving in a designated duty 
   assignment''.
        (3) Table of sections.--The item relating to section 437 in the 
    table of sections at the beginning of chapter 7 of such title is 
    amended to read as follows:

``437. Allowance to cover monthly premium for Servicemembers' Group Life 
          Insurance: members serving in a designated duty assignment.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to service by members of the Armed Forces in a designated duty 
assignment (as defined in subsection (a)(2) of section 437 of title 37, 
United States Code) for any month beginning on or after the date of the 
enactment of this Act.
    SEC. 645. AUTHORITY FOR PAYMENT OF PAY AND ALLOWANCES AND RETIRED 
      AND RETAINER PAY PURSUANT TO POWER OF ATTORNEY.
    Section 602 of title 37, United States Code, is amended--
        (1) in subsection (a)--
            (A) by striking ``, in the opinion of a board of medical 
        officers or physicians,''; and
            (B) by striking ``use or benefit'' and all that follows 
        through ``any person designated'' and inserting the following: 
        ``use or benefit to--
        ``(1) a legal committee, guardian, or other representative that 
    has been appointed by a court of competent jurisdiction;
        ``(2) an individual to whom the member has granted authority to 
    manage such funds pursuant to a valid and legally executed durable 
    power of attorney; or
        ``(3) any person designated'';
        (2) in subsection (b)--
            (A) by striking ``The board shall consist'' and inserting 
        ``An individual may not be designated under subsection (a)(3) 
        to receive payments unless a board consisting''; and
            (B) by inserting ``determines that the member is mentally 
        incapable of managing the member's affairs. Any such board 
        shall be'' after ``treatment of mental disorders,'';
        (3) in subsection (c), by striking ``designated'' and inserting 
    ``authorized to receive payments'';
        (4) in subsection (d), by inserting ``, unless a court of 
    competent jurisdiction orders payment of such fee, commission, or 
    other charge'' before the period;
        (5) by striking subsection (e);
        (6) by redesignating subsection (f) as subsection (e); and
        (7) in subsection (e), as redesignated by paragraph (6)--
            (A) by inserting ``under subsection (a)(3)'' after ``who is 
        designated''; and
            (B) by striking ``$1,000'' and inserting ``$25,000''.
    SEC. 646. EXTENSION OF AUTHORITY TO PAY SPECIAL SURVIVOR INDEMNITY 
      ALLOWANCE UNDER THE SURVIVOR BENEFIT PLAN.
    Section 1450(m) of title 10, United States Code, is amended--
        (1) in paragraph (2)(I), by striking ``fiscal year 2017'' and 
    inserting ``each of fiscal years 2017 and 2018''; and
        (2) in paragraph (6)--
            (A) by striking ``September 30, 2017'' and inserting ``May 
        31, 2018''; and
            (B) by striking ``October 1, 2017'' both places it appears 
        and inserting ``June 1, 2018''.
    SEC. 647. REPEAL OF OBSOLETE AUTHORITY FOR COMBAT-RELATED INJURY 
      REHABILITATION PAY.
    (a) Repeal.--Section 328 of title 37, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title is amended by striking the item relating to 
section 328.
    SEC. 648. INDEPENDENT ASSESSMENT OF THE SURVIVOR BENEFIT PLAN.
    (a) Assessment Required.--The Secretary of Defense shall provide 
for an independent assessment of the Survivor Benefit Plan (SBP) under 
subchapter II of chapter 73 of title 10, United States Code, by a 
Federally-funded research and development center (FFRDC).
    (b) Assessment Elements.--The assessment conducted pursuant to 
subsection (a) shall include, but not be limited to, the following:
        (1) The purposes of the Survivor Benefit Plan, the manner in 
    which the Plan interacts with other Federal programs to provide 
    financial stability and resources for survivors of members of the 
    Armed Forces and military retirees, and a comparison between the 
    benefits available under the Plan, on the one hand, and benefits 
    available to Government and private sector employees, on the other 
    hand, intended to provide financial stability and resources for 
    spouses and other dependents when a primary family earner dies.
        (2) The effectiveness of the Survivor Benefit Plan in providing 
    survivors with intended benefits, including the provision of 
    survivor benefits for survivors of members of the Armed Forces 
    dying on active duty and members dying while in reserve active-
    status.
        (3) The feasibility and advisability of providing survivor 
    benefits through alternative insurance products available 
    commercially for similar purposes, the extent to which the 
    Government could subsidize such products at no cost in excess of 
    the costs of the Survivor Benefit Plan, and the extent to which 
    such products might meet the needs of survivors, especially those 
    on fixed incomes, to maintain financial stability.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
setting forth the results of the assessment conducted pursuant to 
subsection (a), together with such recommendations as the Secretary 
considers appropriate for legislative or administration action in light 
of the results of the assessment.

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

    SEC. 661. PROTECTION AND ENHANCEMENT OF ACCESS TO AND SAVINGS AT 
      COMMISSARIES AND EXCHANGES.
    (a) Optimization Strategy.--Section 2481(c) of title 10, United 
States Code, is amended by adding at the end the following paragraph:
    ``(3)(A) The Secretary of Defense shall develop and implement a 
comprehensive strategy to optimize management practices across the 
defense commissary system and the exchange system that reduce reliance 
of those systems on appropriated funding without reducing benefits to 
the patrons of those systems or the revenue generated by 
nonappropriated fund entities or instrumentalities of the Department of 
Defense for the morale, welfare, and recreation of members of the armed 
forces.
    ``(B) The Secretary shall ensure that savings generated due to such 
optimization practices are shared by the defense commissary system and 
the exchange system through contracts or agreements that appropriately 
reflect the participation of the systems in the development and 
implementation of such practices.
    ``(C) If the Secretary determines that the reduced reliance on 
appropriated funding pursuant to subparagraph (A) is insufficient to 
maintain the benefits to the patrons of the defense commissary system, 
and if the Secretary converts the defense commissary system to a 
nonappropriated fund entity or instrumentality pursuant to paragraph 
(1) of section 2484(j) of this title, the Secretary shall transfer 
appropriated funds pursuant to paragraph (2) of such section to ensure 
the maintenance of such benefits.
    ``(4) On not less than a quarterly basis, the Secretary shall 
provide to the congressional defense committees a briefing on the 
defense commissary system, including--
        ``(A) an assessment of the savings the system provides patrons;
        ``(B) the status of implementing section 2484(i) of this title;
        ``(C) the status of implementing section 2484(j) of this title, 
    including whether the system requires any appropriated funds 
    pursuant to paragraph (2) of such section;
        ``(D) the status of carrying out a program for such system to 
    sell private label merchandise; and
        ``(E) any other matters the Secretary considers appropriate.''.
    (b) Authorization to Supplement Appropriations Through Business 
Optimization.--Section 2483(c) of such title is amended by adding at 
the end the following new sentence: ``Such appropriated amounts may 
also be supplemented with additional funds derived from improved 
management practices implemented pursuant to sections 2481(c)(3) and 
2487(c) of this title and the variable pricing program implemented 
pursuant to section 2484(i) of this title.''.
    (c) Variable Pricing Pilot Program.--Section 2484 of such title is 
amended by adding at the end the following new subsections:
    ``(i) Variable Pricing Program.--(1) Notwithstanding subsection 
(e), and subject to subsection (k), the Secretary of Defense may 
establish a variable pricing program pursuant to which prices may be 
established in response to market conditions and customer demand, in 
accordance with the requirements of this subsection. Notwithstanding 
the amount of the uniform surcharge assessed in subsection (d), the 
Secretary may provide for an alternative surcharge of not more than 
five percent of sales proceeds under the variable pricing program to be 
made available for the purposes specified in subsection (h).
    ``(2) Subject to subsection (k), before establishing a variable 
pricing program under this subsection, the Secretary shall establish 
the following:
        ``(A) Specific, measurable benchmarks for success in the 
    provision of high quality grocery merchandise, discount savings to 
    patrons, and levels of customer satisfaction while achieving 
    savings for the Department of Defense.
        ``(B) A baseline of overall savings to patrons achieved by 
    commissary stores prior to the initiation of the variable pricing 
    program, based on a comparison of prices charged by those stores on 
    a regional basis with prices charged by relevant local competitors 
    for a representative market basket of goods.
    ``(3) The Secretary shall ensure that the defense commissary system 
implements the variable pricing program by conducting price comparisons 
using the methodology established for paragraph (2)(B) and adjusting 
pricing as necessary to ensure that pricing in the variable pricing 
program achieves overall savings to patrons that are consistent with 
the baseline savings established for the relevant region pursuant to 
such paragraph.
    ``(j) Conversion to Nonappropriated Fund Entity or 
Instrumentality.--(1) Subject to subsection (k), if the Secretary of 
Defense determines that the variable pricing program has met the 
benchmarks for success established pursuant to paragraph (2)(A) of 
subsection (i) and the savings requirements established pursuant to 
paragraph (3) of such subsection over a period of at least six months, 
the Secretary may convert the defense commissary system to a 
nonappropriated fund entity or instrumentality, with operating expenses 
financed in whole or in part by receipts from the sale of products and 
the sale of services. Upon such conversion, appropriated funds shall be 
transferred to the defense commissary system only in accordance with 
paragraph (2) or section 2491 of this title. The requirements of 
section 2483 of this title shall not apply to the defense commissary 
system operating as a nonappropriated fund entity or instrumentality.
    ``(2) If the Secretary determines that the defense commissary 
system operating as a nonappropriated fund entity or instrumentality is 
likely to incur a loss in any fiscal year as a result of compliance 
with the savings requirement established in subsection (i), the 
Secretary shall authorize a transfer of appropriated funds available 
for such purpose to the commissary system in an amount sufficient to 
offset the anticipated loss. Any funds so transferred shall be 
considered to be nonappropriated funds for such purpose.
    ``(3)(A) The Secretary may identify positions of employees in the 
defense commissary system who are paid with appropriated funds whose 
status may be converted to the status of an employee of a 
nonappropriated fund entity or instrumentality.
    ``(B) The status and conversion of employees in a position 
identified by the Secretary under subparagraph (A) shall be addressed 
as provided in section 2491(c) of this title for employees in morale, 
welfare, and recreation programs, including with respect to requiring 
the consent of such employee to be so converted.
    ``(C) No individual who is an employee of the defense commissary 
system as of the date of the enactment of this subsection shall suffer 
any loss of or decrease in pay as a result of a conversion made under 
this paragraph.
    ``(k) Oversight Required To Ensure Continued Benefit to Patrons.--
(1) With respect to each action described in paragraph (2), the 
Secretary of Defense may not carry out such action until--
        ``(A) the Secretary provides to the congressional defense 
    committees a briefing on such action, including a justification for 
    such action; and
        ``(B) a period of 30 days has elapsed following such briefing.
    ``(2) The actions described in this paragraph are the following:
        ``(A) Establishing the representative market basket of goods 
    pursuant to subsection (i)(2)(B).
        ``(B) Establishing the variable pricing program under 
    subsection (i)(1).
        ``(C) Converting the defense commissary system to a 
    nonappropriated fund entity or instrumentality under subsection 
    (j)(1).''.
    (d) Establishment of Common Business Practices.--Section 2487 of 
such title is amended--
        (1) by redesignating subsection (c) as subsection (d); and
        (2) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c) Common Business Practices.--(1) Notwithstanding subsections 
(a) and (b), the Secretary of Defense may establish common business 
processes, practices, and systems--
        ``(A) to exploit synergies between the defense commissary 
    system and the exchange system; and
        ``(B) to optimize the operations of the defense retail systems 
    as a whole and the benefits provided by the commissaries and 
    exchanges.
    ``(2) The Secretary may authorize the defense commissary system and 
the exchange system to enter into contracts or other agreements--
        ``(A) for products and services that are shared by the defense 
    commissary system and the exchange system; and
        ``(B) for the acquisition of supplies, resale goods, and 
    services on behalf of both the defense commissary system and the 
    exchange system.
    ``(3) For the purpose of a contract or agreement authorized under 
paragraph (2), the Secretary may--
        ``(A) use funds appropriated pursuant to section 2483 of this 
    title to reimburse a nonappropriated fund entity or instrumentality 
    for the portion of the cost of a contract or agreement entered by 
    the nonappropriated fund entity or instrumentality that is 
    attributable to the defense commissary system; and
        ``(B) authorize the defense commissary system to accept 
    reimbursement from a nonappropriated fund entity or instrumentality 
    for the portion of the cost of a contract or agreement entered by 
    the defense commissary system that is attributable to the 
    nonappropriated fund entity or instrumentality.''.
    (e) Authority for Expert Commercial Advice.--Section 2485 of such 
title is amended by adding at the end the following new subsection:
    ``(i) Expert Commercial Advice.--The Secretary of Defense may enter 
into a contract with an entity to obtain expert commercial advice, 
commercial assistance, or other similar services not otherwise carried 
out by the Defense Commissary Agency, to implement section 2481(c), 
subsections (i) and (j) of section 2484, and section 2487(c) of this 
title.''.
    (f)  Clarification of References to ``the Exchange System''.--
Section 2481(a) of such title is amended by adding at the end the 
following new sentence: `` Any reference in this chapter to `the 
exchange system' shall be treated as referring to each separate 
administrative entity within the Department of Defense through which 
the Secretary has implemented the requirement under this subsection for 
a world-wide system of exchange stores.''.
    (g) Operation of Defense Commissary System as a Nonappropriated 
Fund Entity.--In the event that the defense commissary system is 
converted to a nonappropriated fund entity or instrumentality as 
authorized by section 2484(j)(1) of title 10, United States Code, as 
added by subsection (c) of this section, the Secretary of Defense may--
        (1) provide for the transfer of commissary assets, including 
    inventory and available funds, to the nonappropriated fund entity 
    or instrumentality; and
        (2) ensure that revenues accruing to the defense commissary 
    system are appropriately credited to the nonappropriated fund 
    entity or instrumentality.
    (h) Conforming Change.--Section 2643(b) of such title is amended by 
adding at the end the following new sentence: ``Such appropriated funds 
may be supplemented with additional funds derived from improved 
management practices implemented pursuant to sections 2481(c)(3) and 
2487(c) of this title.''.
    SEC. 662. ACCEPTANCE OF MILITARY STAR CARD AT COMMISSARIES.
    (a) In General.--The Secretary of Defense shall ensure that--
        (1) commissary stores accept as payment the Military Star Card; 
    and
        (2) any financial liability of the United States relating to 
    such acceptance as payment be assumed by the Army and Air Force 
    Exchange Service.
    (b) Military Star Card Defined.--In this section, the term 
``Military Star Card'' means a credit card administered under the 
Exchange Credit Program by the Army and Air Force Exchange Service.

                       Subtitle F--Other Matters

    SEC. 671. RECOVERY OF AMOUNTS OWED TO THE UNITED STATES BY MEMBERS 
      OF THE UNIFORMED SERVICES.
    (a) Statute of Limitations.--Section 1007(c)(3) of title 37, United 
States Code, is amended by adding at the end the following new 
subparagraphs:
    ``(C)(i) In accordance with clause (ii), if the indebtedness of a 
member of the uniformed services to the United States occurs, through 
no fault of the member, as a result of the overpayment of pay or 
allowances to the member or upon the settlement of the member's 
accounts, the Secretary concerned may not recover the indebtedness from 
the member, including a retired or former member, using deductions from 
the pay of the member, deductions from retired or separation pay, or 
any other collection method unless recovery of the indebtedness 
commences before the end of the 10-year period beginning on the date on 
which the indebtedness was incurred.
    ``(ii) Clause (i) applies with respect to indebtedness incurred on 
or after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2017.
    ``(D)(i) Not later than January 1 of each of 2017 through 2027, the 
Director of the Defense Finance and Accounting Service shall review all 
cases occurring during the 10-year period prior to the date of the 
review of indebtedness of a member of the uniformed services, including 
a retired or former member, to the United States in which--
        ``(I) the recovery of the indebtedness commenced after the end 
    of the 10-year period beginning on the date on which the 
    indebtedness was incurred; or
        ``(II) the Director did not otherwise notify the member of such 
    indebtedness during such 10-year period.
    ``(ii) The Director shall submit to the congressional defense 
committees and the Committees on Veterans' Affairs of the House of 
Representatives and the Senate each review conducted under clause (i), 
including the amounts owed to the United States by the members included 
in such review.''.
    (b) Remission or Cancellation of Indebtedness of Reserves Not on 
Active Duty.--
        (1) Army.--Section 4837(a) of title 10, United States Code, is 
    amended by striking ``on active duty as a member of the Army'' and 
    inserting ``as a member of the Army, whether as a regular or a 
    reserve in active status''.
        (2) Navy.--Section 6161(a) of such title is amended by striking 
    ``on active duty as a member of the naval service'' and inserting 
    ``as a member of the naval service, whether as a regular or a 
    reserve in active status''.
        (3) Air force.--Section 9837(a) of such title is amended by 
    striking ``on active duty as a member of the Air Force'' and 
    inserting ``as a member of the Air Force, whether as a regular or a 
    reserve in active status''.
        (4) Coast guard.--Section 461(1) of title 14, United States 
    Code, is amended by striking ``on active duty as a member of the 
    Coast Guard'' and inserting ``as a member of the Coast Guard, 
    whether as a regular or a reserve in active status''.
        (5) Effective date.--The amendments made by this subsection 
    shall take effect on the date of the enactment of this Act, and 
    shall apply with respect to debt incurred on or after October 7, 
    2001.
    (c) Benefits Paid to Members of California National Guard.--
        (1) Review of certain benefits paid.--
            (A) In general.--The Secretary of Defense shall conduct a 
        review of all bonus pays, special pays, student loan 
        repayments, and similar special payments that were paid to 
        members of the National Guard of the State of California during 
        the period beginning on January 1, 2004, and ending on December 
        31, 2015.
            (B) Exception.--A review is not required under this 
        paragraph for benefits paid as described in subparagraph (A) 
        that were reviewed before the date of the enactment of this Act 
        and in which fraud or other ineligibility was identified in 
        connection with payment.
            (C) Conduct of review.--The Secretary shall establish a 
        process to expedite the review required by this paragraph. The 
        Secretary shall allocate appropriate personnel and other 
        resources of the Department of Defense for the process, and for 
        such other purposes as the Secretary considers appropriate, in 
        order to achieve the completion of the review by the date 
        specified in subparagraph (D).
            (D) Completion.--The review required by this paragraph 
        shall be completed by not later than July 30, 2017.
        (2) Review.--
            (A) In general.--In conducting the review of benefits paid 
        to members of the National Guard of the State of California 
        pursuant to paragraph (1), the board of review concerned 
        shall--
                (i) carry out a complete review of all bonus pay and 
            special pay contracts awarded to such members during the 
            period described in paragraph (1)(A) for which the 
            Department has reason to believe a recoupment of pay may be 
            warranted in order to determine whether such members were 
            eligible for the contracts so awarded and whether the 
            contracts so awarded accurately specified the amounts of 
            pay for which members were eligible;
                (ii) carry out a complete review of all student loan 
            repayment contracts awarded to such members during the 
            period for which the Department has reason to believe a 
            recoupment of payment may be warranted in order to 
            determine whether such members were eligible for the 
            contracts so awarded and whether the contracts so awarded 
            accurately specified the amounts of payment for which 
            members were eligible;
                (iii) carry out a complete review of any other similar 
            special payments paid to such members during the period for 
            which the Department has reason to believe a recoupment of 
            payments may be warranted in order to determine whether 
            such members were eligible for payment and in such amount;
                (iv) if any member is determined not to have been 
            eligible for a bonus pay, special pay, student loan 
            repayment, or other special payment paid, determine whether 
            waiver of recoupment is warranted; and
                (v) if any bonus pay, special pay, student loan 
            repayment, or other special payment paid to any such member 
            during the period has been recouped, determine whether the 
            recoupment was unwarranted.
            (B) Waiver of recoupment.--For purposes of clause (iv) of 
        subparagraph (A), the board of review shall determine that 
        waiver of recoupment is warranted with respect to a particular 
        member unless the board makes an affirmative determination, by 
        a preponderance of the evidence, that the member knew or 
        reasonably should have known that the member was ineligible for 
        the bonus pay, special pay, student loan repayment, or other 
        special payment otherwise subject to recoupment.
            (C) Propriety of recoupment.--For purposes of clause (v) of 
        subparagraph (A), the board of review shall determine that 
        recoupment was unwarranted with respect to a particular member 
        unless the board makes an affirmative determination, by a 
        preponderance of the evidence, that the member knew or 
        reasonably should have known that the member was ineligible for 
        the bonus pay, special pay, student loan repayment, or other 
        special payment recouped.
            (D) Standard of review.--In applying subparagraph (B) or 
        (C) in making a determination under clause (iv) or (v) of 
        subparagraph (A), as applicable, with respect to a member, the 
        board of review shall evaluate the evidence in a light most 
        favorable to the member.
        (3) Participation of members.--
            (A) In general.--A member subject to a determination under 
        clause (iv) or (v) of paragraph (2)(A) may submit to the board 
        of review concerned such documentary and other evidence as the 
        member considers appropriate to assist the board of review in 
        the determination.
            (B) Notice.--The Secretary shall notify, in writing, each 
        member subject to a determination under clause (iv) or (v) of 
        paragraph (2)(A) of the review under paragraph (1) and the 
        applicability of the determination process under such clause to 
        such member. The notice shall be provided at a time designed to 
        give each member a reasonable opportunity to submit documentary 
        and other evidence as authorized by subparagraph (A). The 
        notice shall provide each member the following:
                (i) Notice of the opportunity for such member to submit 
            evidence to assist the board of review.
                (ii) A description of resources available to such 
            member to submit such evidence.
            (C) Consideration.--In making a determination under clause 
        (iv) or (v) of paragraph (2)(A) with respect to a member, the 
        board of review shall undertake a comprehensive review of any 
        submissions made by the member pursuant to this paragraph.
        (4) Actions following review.--
            (A) Waiver of recoupment.--Upon completion of a review 
        pursuant to paragraph (2)(A)(iv) with respect to a member--
                (i) the board of review shall submit to the Secretary 
            concerned a notice setting forth--

                    (I) the determination of the board pursuant to that 
                paragraph with respect to the member; and
                    (II) the recommendation of the board whether or not 
                the recoupment of the bonus pay, special pay, student 
                loan repayment, or other special payment covered by the 
                determination should be waived; and

                (ii) the Secretary may waive recoupment of the pay, 
            repayment, or other payment from the member.
            (B) Repayment of amount recouped.--Upon completion of a 
        review pursuant to paragraph (2)(A)(v) with respect to a 
        member--
                (i) the board of review shall submit to the Secretary 
            concerned a notice setting forth--

                    (I) the determination of the board pursuant to that 
                paragraph with respect to the member; and
                    (II) the recommendation of the board whether or not 
                the recouped bonus pay, special pay, student loan 
                repayment, or other special payment covered by the 
                determination should be repaid the member; and

                (ii) the Secretary may repay the member the amount so 
            recouped.
            (C) Consumer credit and related matters.--If the Secretary 
        concerned waives recoupment of a bonus pay, special pay, 
        student loan repayment, or other special payment paid a member 
        pursuant to paragraph (4)(A)(ii), or repays a member an amount 
        of a bonus pay, special pay, student loan repayment, or other 
        special payment recouped pursuant to paragraph (4)(B)(ii), the 
        Secretary shall--
                (i) in the event the Secretary had previously notified 
            a consumer reporting agency of the existence of the debt 
            subject to the relief granted the member pursuant to this 
            paragraph, notify such consumer reporting agency that such 
            debt was never valid; and
                (ii) if the member is experiencing or has experienced 
            financial hardship as a result of the actions of the United 
            States to obtain recoupment of such debt, assist the 
            member, to the extent practicable, in addressing such 
            financial hardship in accordance with such mechanisms as 
            the Secretary shall develop for purposes of this clause.
            (D) Effect of consumer credit notification.--A consumer 
        reporting agency notified of the invalidity of a debt pursuant 
        to subparagraph (C)(i) may not, after the date of the notice, 
        make any consumer report containing any information relating to 
        the debt.
            (E) Definitions.--In this paragraph, the terms ``consumer 
        reporting agency'' and ``consumer report'' have the meaning 
        given such terms in section 603 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681a).
        (5) Funding.--Amounts for activities under this subsection, 
    including for the conduct of the review required by paragraph (1), 
    for activities in connection with the review, for repayments 
    pursuant to paragraph (4)(B), and for activities under paragraph 
    (4)(C), shall be derived from amounts available for the National 
    Guard of the United States for the State of California.
        (6) Secretary of defense report.--
            (A) In general.--Not later than August 1, 2017, the 
        Secretary of Defense shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a 
        report on the review conducted pursuant to paragraph (1).
            (B) Elements.--The report under this paragraph shall 
        include the following:
                (i) The total amount of bonus pays, special pays, 
            student loan repayments, and other special pays paid to 
            members of the National Guard of the State of California 
            during the period beginning on September 1, 2001, and 
            ending on December 31, 2015.
                (ii) The number of bonus pay and special pay contracts 
            reviewed pursuant to paragraph (2)(A)(i), and the amounts 
            of such pays paid under each such contract.
                (iii) The number of student loan repayment contracts 
            reviewed pursuant to paragraph (2)(A)(ii), and the amounts 
            of such payments made pursuant to each such contract.
                (iv) The number of other special pay payments reviewed 
            pursuant to paragraph (2)(A)(iii), and the amounts of such 
            payments made to each particular member so paid.
                (v) The number of bonus pay and special pay contracts, 
            student loan repayments, and other special pay payments 
            that were determined pursuant to the review to be paid in 
            error, and the total amount, if any, recouped from each 
            member concerned.
                (vi) Any additional fraud or other ineligibility 
            identified in the course of the review in the payment of 
            bonus pays, special pays, student loan repayments, and 
            other special pays paid to the members of the National 
            Guard of the State of California during the period 
            beginning on September 1, 2001, and ending on December 31, 
            2015.
        (7) Comptroller general report.--
            (A) In general.--Not later than one year after the date of 
        the enactment of this Act, the Comptroller General of the 
        United States shall submit to the Committees on Armed Services 
        of the Senate and the House of Representatives a report on the 
        actions of the National Guard of the State of California 
        relating to the payment of bonus pays, special pays, student 
        loan repayments, and other special pays from 2004 through 2015.
            (B) Elements.--The report under this paragraph shall 
        include the following:
                (i) An assessment whether the National Guard of the 
            State of California and the National Guard Bureau have 
            established policies and procedures that will minimize the 
            chance of improper payment of such pays and repayments and 
            of managerial abuse in the payment of such pays and 
            repayments.
                (ii) An assessment whether the procedures, processes, 
            and resources of the Defense Finance and Accounting Service 
            and the Defense Office of Hearings and Appeals were 
            appropriate to identify and respond to fraud or other 
            ineligibility in connection with the payment of such pays 
            and repayments, and to do so in a timely manner.
                (iii) Any recommendations the Comptroller General 
            considers appropriate to streamline the procedures and 
            processes for the waiver of recoupment of the payment of 
            such pays and repayments by the United States when 
            recoupment is unwarranted.
    SEC. 672. MODIFICATION OF FLAT RATE PER DIEM REQUIREMENT FOR 
      PERSONNEL ON LONG-TERM TEMPORARY DUTY ASSIGNMENTS.
    (a) Modification of Flat Rate.--
        (1) In general.--The Secretary of Defense shall take such 
    action as may be necessary to provide that, to the extent that 
    regulations implementing travel and transportation authorities for 
    military and civilian personnel of the Department of Defense impose 
    a flat rate per diem for meals and incidental expenses for 
    authorized travelers on long-term temporary duty assignments that 
    is at a reduced rate compared to the per diem rate otherwise 
    applicable, the Secretary concerned may waive the applicability of 
    such reduced rate and pay such travelers actual expenses up to the 
    full per diem rate for such travel in any case when the Secretary 
    concerned determines that the reduced flat rate per diem for meals 
    and incidental expenses is not sufficient under the circumstances 
    of the temporary duty assignment.
        (2) Applicability.--The Secretary concerned may exercise the 
    authority provided pursuant to paragraph (1) with respect to per 
    diem payable for any day on or after the date of the enactment of 
    this Act.
    (b) Delegation of Authority.--The authority pursuant to subsection 
(a) may be delegated by the Secretary concerned to an officer at the 
level of lieutenant general or vice admiral, or above. Such authority 
may not be delegated to an officer below that level.
    (c) Waiver of Collection of Receipts.--The Secretary concerned or 
an officer to whom the authority pursuant to subsection (a) is 
delegated pursuant to subsection (b) may waive any requirement for the 
submittal of receipts by travelers on long-term temporary duty 
assignments for the purpose of receiving the full per diem rate 
pursuant to subsection (a) if the Secretary concerned or officer, as 
described in subsection (b), personally certifies that requiring 
travelers to submit receipts for that purpose will negatively affect 
mission performance or create an undue administrative burden.
    (d) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 101 
of title 37, United States Code.

                   TITLE VII--HEALTH CARE PROVISIONS

        Subtitle A--Reform of TRICARE and Military Health System

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

                 Subtitle B--Other Health Care Benefits

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

                 Subtitle C--Health Care Administration

Sec. 721. Authority to convert military medical and dental positions to 
          civilian medical and dental positions.
Sec. 722. Prospective payment of funds necessary to provide medical care 
          for the Coast Guard.
Sec. 723. Reduction of administrative requirements relating to automatic 
          renewal of enrollments in TRICARE Prime.
Sec. 724. Modification of authority of Uniformed Services University of 
          the Health Sciences to include undergraduate and other medical 
          education and training programs.
Sec. 725. Adjustment of medical services, personnel authorized 
          strengths, and infrastructure in military health system to 
          maintain readiness and core competencies of health care 
          providers.
Sec. 726. Program to eliminate variability in health outcomes and 
          improve quality of health care services delivered in military 
          medical treatment facilities.
Sec. 727. Acquisition strategy for health care professional staffing 
          services.
Sec. 728. Adoption of core quality performance metrics.
Sec. 729. Improvement of health outcomes and control of costs of health 
          care under TRICARE program through programs to involve covered 
          beneficiaries.
Sec. 730. Accountability for the performance of the military health 
          system of certain leaders within the system.
Sec. 731. Establishment of advisory committees for military treatment 
          facilities.

                  Subtitle D--Reports and Other Matters

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

        Subtitle A--Reform of TRICARE and Military Health System

    SEC. 701. TRICARE SELECT AND OTHER TRICARE REFORM.
    (a) Establishment of TRICARE Select.--
        (1) In general.--Chapter 55 of title 10, United States Code, is 
    amended by inserting after section 1074n the following new section:
``Sec. 1075. TRICARE Select
    ``(a) Establishment.--(1) Not later than January 1, 2018, the 
Secretary of Defense shall establish a self-managed, preferred-provider 
network option under the TRICARE program. Such option shall be known as 
`TRICARE Select'.
    ``(2) The Secretary shall establish TRICARE Select in all areas. 
Under TRICARE Select, eligible beneficiaries will not have restrictions 
on the freedom of choice of the beneficiary with respect to health care 
providers.
    ``(b) Enrollment Eligibility.--(1) The beneficiary categories for 
purposes of eligibility to enroll in TRICARE Select and cost-sharing 
requirements applicable to such category are as follows:
        ``(A) An `active-duty family member' category that consists of 
    beneficiaries who are covered by section 1079 of this title (as 
    dependents of active duty members).
        ``(B) A `retired' category that consists of beneficiaries 
    covered by subsection (c) of section 1086 of this title, other than 
    Medicare-eligible beneficiaries described in subsection (d)(2) of 
    such section.
        ``(C) A `reserve and young adult' category that consists of 
    beneficiaries who are covered by--
            ``(i) section 1076d of this title;
            ``(ii) section 1076e; or
            ``(iii) section 1110b.
    ``(2) A covered beneficiary who elects to participate in TRICARE 
Select shall enroll in such option under section 1099 of this title.
    ``(c) Cost-sharing Requirements.--The cost-sharing requirements 
under TRICARE Select are as follows:
        ``(1) With respect to beneficiaries in the active-duty family 
    member category or the retired category by reason of being a member 
    or former member of the uniformed services who originally enlists 
    or is appointed in the uniformed services on or after January 1, 
    2018, or by reason of being a dependent of such a member, the cost-
    sharing requirements shall be calculated pursuant to subsection 
    (d)(1).
        ``(2)(A) Except as provided by subsection (e), with respect to 
    beneficiaries described in subparagraph (B) in the active-duty 
    family member category or the retired category, the cost-sharing 
    requirements shall be calculated as if the beneficiary were 
    enrolled in TRICARE Extra or TRICARE Standard as if TRICARE Extra 
    or TRICARE Standard, as the case may be, were still being carried 
    out by the Secretary.
        ``(B) Beneficiaries described in this subparagraph are 
    beneficiaries who are eligible to enroll in the TRICARE program by 
    reason of being a member or former member of the uniformed services 
    who originally enlists or is appointed in the uniformed services 
    before January 1, 2018, or by reason of being a dependent of such a 
    member.
        ``(3) With respect to beneficiaries in the reserve and young 
    adult category, the cost-sharing requirements shall be calculated 
    pursuant to subsection (d)(1) as if the beneficiary were in the 
    active-duty family member category or the retired category, as 
    applicable, except that the premiums calculated pursuant to section 
    1076d, 1076e, or 1110b of this title, as the case may be, shall 
    apply instead of any enrollment fee required under this section.
    ``(d) Cost-sharing Amounts for Certain Beneficiaries.--(1) 
Beneficiaries described in subsection (c)(1) enrolled in TRICARE Select 
shall be subject to cost-sharing requirements in accordance with the 
amounts and percentages under the following table during calendar year 
2018 and as such amounts are adjusted under paragraph (2) for 
subsequent years:


----------------------------------------------------------------------------------------------------------------
                       Active-Duty Family Member   (Individual/
 ``TRICARE Select                      Family)                             Retired   (Individual/Family)
----------------------------------------------------------------------------------------------------------------
Annual Enrollment   $0                                             $450 / $900
----------------------------------------------------------------------------------------------------------------
Annual deductible               E4 & below: $50 / $100             $150 / $300 Network
                               E5 & above: $150 / $300             $300 / $600 out of network
----------------------------------------------------------------------------------------------------------------
           Annual   $1,000                                         $3,500
  catastrophic cap
----------------------------------------------------------------------------------------------------------------
 Outpatient visit   $15 primary care                               $25 primary care
 civilian network
                    $25 specialty care                             $40 specialty care
                    .............................................  .............................................
                    Out of network: 20%                            25% of out of network
----------------------------------------------------------------------------------------------------------------
ER visit civilian   $40 network                                    $80 network
           network
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
      Urgent care   $20 network                                    $40 network
  civilian network
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Ambulatory surgery  $25 network                                    $95 network
  civilian network
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Ambulance civilian  $15                                            $60
           network
----------------------------------------------------------------------------------------------------------------
  Durable medical   10% of negotiated fee                          20% network
         equipment
  civilian network
----------------------------------------------------------------------------------------------------------------
  Inpatient visit   $60 per network admission                      $175 per admission network
  civilian network
                    .............................................  .............................................
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Inpatient skilled   $25 per day network                            $50 per day network
     nursing/rehab
          civilian
                    $50 per day out of network                     Lesser of $300 per day or 20% of billed
                                                                    charges out of network
----------------------------------------------------------------------------------------------------------------


    ``(2) Each dollar amount expressed as a fixed dollar amount in the 
table set forth in paragraph (1), and the amounts specified under 
paragraphs (1) and (2) of subsection (e), shall be annually indexed to 
the amount by which retired pay is increased under section 1401a of 
this title, rounded to the next lower multiple of $1. The remaining 
amount above such multiple of $1 shall be carried over to, and 
accumulated with, the amount of the increase for the subsequent year or 
years and made when the aggregate amount of increases carried over 
under this clause for a year is $1 or more.
    ``(3) Enrollment fees, deductible amounts, and catastrophic caps 
under this section are on a calendar-year basis.
    ``(e) Exceptions to Certain Cost-sharing Amounts for Certain 
Beneficiaries Eligible Prior to 2018.--(1) Subject to paragraph (4), 
and in accordance with subsection (d)(2), the Secretary shall establish 
an annual enrollment fee for beneficiaries described in subsection 
(c)(2)(B) in the retired category who enroll in TRICARE Select (other 
than such beneficiaries covered by paragraph (3)). Such enrollment fee 
shall be $150 for an individual and $300 for a family.
    ``(2) For the calendar year for which the Secretary first 
establishes the annual enrollment fee under paragraph (1), the 
Secretary shall adjust the catastrophic cap amount to be $3,500 for 
beneficiaries described in subsection (c)(2)(B) in the retired category 
who are enrolled in TRICARE Select (other than such beneficiaries 
covered by paragraph (3)).
    ``(3) The enrollment fee established pursuant to paragraph (1) and 
the catastrophic cap adjusted under paragraph (2) for beneficiaries 
described in subsection (c)(2)(B) in the retired category shall not 
apply with respect to the following beneficiaries:
        ``(A) Retired members and the family members of such members 
    covered by paragraph (1) of section 1086(c) of this title by reason 
    of being retired under chapter 61 of this title or being a 
    dependent of such a member.
        ``(B) Survivors covered by paragraph (2) of such section 
    1086(c).
    ``(4) The Secretary may not establish an annual enrollment fee 
under paragraph (1) until 90 days has elapsed following the date on 
which the Comptroller General of the United States is required to 
submit the review under paragraph (5).
    ``(5) Not later than February 1, 2020, the Comptroller General of 
the United States shall submit to the Committees on Armed Services of 
the House of Representatives and the Senate a review of the following:
        ``(A) Whether health care coverage for covered beneficiaries 
    has changed since the enactment of this section.
        ``(B) Whether covered beneficiaries are able to obtain 
    appointments for health care according to the access standards 
    established by the Secretary of Defense.
        ``(C) The percent of network providers that accept new patients 
    under the TRICARE program.
        ``(D) The satisfaction of beneficiaries under TRICARE Select.
    ``(f) Exception to Cost-sharing Requirements for TRICARE for Life 
Beneficiaries.--A beneficiary enrolled in TRICARE for Life is subject 
to cost-sharing requirements pursuant to section 1086(d)(3) of this 
title and calculated as if the beneficiary were enrolled in TRICARE 
Standard as if TRICARE Standard were still being carried out by the 
Secretary.
    ``(g) Construction.--Nothing in this section may be construed as 
affecting the availability of TRICARE Prime and TRICARE for Life or the 
cost-sharing requirements for TRICARE for Life under section 1086(d)(3) 
of this title.
    ``(h) Definitions.--In this section:
        ``(1) The terms `active-duty family member category', `retired 
    category', and `reserve and young adult category' mean the 
    respective categories of TRICARE Select enrollment described in 
    subsection (b).
        ``(2) The term `network' means--
            ``(A) with respect to health care services, such services 
        provided to beneficiaries by TRICARE-authorized civilian health 
        care providers who have entered into a contract under this 
        chapter with a contractor under the TRICARE program; and
            ``(B) with respect to providers, civilian health care 
        providers who have agreed to accept a pre-negotiated rate as 
        the total charge for services provided by the provider and to 
        file claims for beneficiaries.
        ``(3) The term `out-of-network' means, with respect to health 
    care services, such services provided by TRICARE-authorized 
    civilian providers who have not entered into a contract under this 
    chapter with a contractor under the TRICARE program.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 55 of title 10, United States Code, is amended by 
    inserting after the item relating to section 1074n, the following 
    new item:

``1075. TRICARE Select.''.

    (b) TRICARE Prime Cost Sharing.--
        (1) In general.--Chapter 55 of title 10, United States Code, is 
    amended by inserting after section 1075, as added by subsection 
    (a), the following new section:
``Sec. 1075a. TRICARE Prime: cost sharing
    ``(a) Cost-sharing Requirements.--The cost-sharing requirements 
under TRICARE Prime are as follows:
        ``(1) There are no cost-sharing requirements for beneficiaries 
    who are covered by section 1074(a) of this title.
        ``(2) With respect to beneficiaries in the active-duty family 
    member category or the retired category (as described in section 
    1075(b)(1) of this title) by reason of being a member or former 
    member of the uniformed services who originally enlists or is 
    appointed in the uniformed services on or after January 1, 2018, or 
    by reason of being a dependent of such a member, the cost-sharing 
    requirements shall be calculated pursuant to subsection (b)(1).
        ``(3)(A) With respect to beneficiaries described in 
    subparagraph (B) in the active-duty family member category or the 
    retired category (as described in section 1075(b)(1) of this 
    title), the cost-sharing requirements shall be calculated in 
    accordance with the other provisions of this chapter without regard 
    to subsection (b).
        ``(B) Beneficiaries described in this subparagraph are 
    beneficiaries who are eligible to enroll in the TRICARE program by 
    reason of being a member or former member of the uniformed services 
    who originally enlists or is appointed in the uniformed services 
    before January 1, 2018, or by reason of being a dependent of such a 
    member.
    ``(b) Cost-sharing Amounts.--(1) Beneficiaries described in 
subsection (a)(2) enrolled in TRICARE Prime shall be subject to cost-
sharing requirements in accordance with the amounts and percentages 
under the following table during calendar year 2018 and as such amounts 
are adjusted under paragraph (2) for subsequent years:


----------------------------------------------------------------------------------------------------------------
                       Active-Duty Family Member   (Individual/
  ``TRICARE Prime                      Family)                             Retired   (Individual/Family)
----------------------------------------------------------------------------------------------------------------
Annual Enrollment   $0                                             $350 / $700
----------------------------------------------------------------------------------------------------------------
Annual deductible   No                                             No
----------------------------------------------------------------------------------------------------------------
           Annual   $1,000                                         $3,500
  catastrophic cap
----------------------------------------------------------------------------------------------------------------
 Outpatient visit   $0                                             $20 primary care
  civilian network
                                                                  ----------------------------------------------
                    .............................................  $30 specialty care
----------------------------------------------------------------------------------------------------------------
ER visit civilian   $0                                             $60 network
           network
----------------------------------------------------------------------------------------------------------------
      Urgent care   $0                                             $30 network
  civilian network
----------------------------------------------------------------------------------------------------------------
Ambulatory surgery  $0                                             $60 network
  civilian network
----------------------------------------------------------------------------------------------------------------
Ambulance civilian  $0                                             $40
           network
----------------------------------------------------------------------------------------------------------------
  Durable medical   $0                                             20% of negotiated fee, network
         equipment
  civilian network
----------------------------------------------------------------------------------------------------------------
  Inpatient visit   $0                                             $150 per admission
  civilian network
----------------------------------------------------------------------------------------------------------------
Inpatient skilled   $0                                             $30 per day network
     nursing/rehab
          civilian
----------------------------------------------------------------------------------------------------------------
 


    ``(2) Each dollar amount expressed as a fixed dollar amount in the 
table set forth in paragraph (1) shall be annually indexed to the 
amount by which retired pay is increased under section 1401a of this 
title, rounded to the next lower multiple of $1. The remaining amount 
above such multiple of $1 shall be carried over to, and accumulated 
with, the amount of the increase for the subsequent year or years and 
made when the aggregate amount of increases carried over under this 
clause for a year is $1 or more.
    ``(3) Enrollment fees, deductible amounts, and catastrophic caps 
under this section are on a calendar-year basis.
    ``(c) Special Rule for Amounts Without Referrals.--Notwithstanding 
subsection (b)(1), the cost-sharing amount for a beneficiary enrolled 
in TRICARE Prime who does not obtain a referral for care under 
paragraph (1) of section 1075f(a) of this title (or a waiver pursuant 
to paragraph (2) of such section for such care) shall be an amount 
equal to 50 percent of the allowed point-of-service charge for such 
care.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 55 of title 10, United States Code, is amended by 
    inserting after the item relating to section 1075, as added by 
    subsection (a), the following new item:

``1075a. TRICARE Prime: cost sharing.''.

    (c) Referrals and Preauthorization for TRICARE Prime.--Section 
1095f of title 10, United States Code, is amended to read as follows:
``Sec. 1095f. TRICARE program: referrals and preauthorizations under 
     TRICARE Prime
    ``(a) Referrals.--(1) Except as provided by paragraph (2), a 
beneficiary enrolled in TRICARE Prime shall be required to obtain a 
referral for care through a designated primary care manager (or other 
care coordinator) prior to obtaining care under the TRICARE program.
    ``(2) The Secretary may waive the referral requirement in paragraph 
(1) in such circumstances as the Secretary may establish for purposes 
of this subsection.
    ``(3) The cost-sharing amounts for a beneficiary enrolled in 
TRICARE Prime who does not obtain a referral for care under paragraph 
(1) (or a waiver pursuant to paragraph (2) for such care) shall be 
determined under section 1075a(c) of this title.
    ``(b) Preauthorization.--A beneficiary enrolled in TRICARE Prime 
shall be required to obtain preauthorization only with respect to a 
referral for the following:
        ``(1) Inpatient hospitalization.
        ``(2) Inpatient care at a skilled nursing facility.
        ``(3) Inpatient care at a rehabilitation facility.
    ``(c) Prohibition Regarding Prior Authorization for Certain 
Referrals.--The Secretary of Defense shall ensure that no contract for 
managed care support under the TRICARE program includes any requirement 
that a managed care support contractor require a primary care or 
specialty care provider to obtain prior authorization before referring 
a patient to a specialty care provider that is part of the network of 
health care providers or institutions of the contractor.''.
    (d) Enrollment Periods.--
        (1) Annual periods and qualifying events.--Section 1099(b) of 
    title 10, United States Code, is amended by amending paragraph (1) 
    to read as follows:
        ``(1) allow covered beneficiaries to elect to enroll in a 
    health care plan, or modify a previous election, from eligible 
    health care plans designated by the Secretary of Defense during--
            ``(A) an annual open enrollment period; and
            ``(B) any period based on a qualifying event experienced by 
        the beneficiary, as determined appropriate by the Secretary; 
        or''.
        (2) Application.--The Secretary of Defense shall implement the 
    initial annual open enrollment period pursuant to section 
    1099(b)(1) of title 10, United States Code, as amended by paragraph 
    (1), during 2018.
        (3) Grace period during first year.--
            (A) At any time during the one-year period beginning on the 
        date on which the initial annual open enrollment period begins 
        pursuant to section 1099(b)(1) of title 10, United States Code, 
        as amended by paragraph (1), a covered beneficiary may make an 
        election, or modify such an election, described in such 
        section.
            (B) If during such one-year period an individual who is 
        eligible to enroll in the TRICARE program, but does not elect 
        to enroll in such program, receives health care services for an 
        episode of care that would be covered under the TRICARE program 
        if such individual were enrolled in the TRICARE program, the 
        Secretary--
                (i) shall pay the out-of-network fees only for the 
            first episode of care and inform the individual of the 
            opportunity to enroll in the TRICARE program; and
                (ii) may not pay any costs relating to any subsequent 
            episode of care if such individual is not enrolled in the 
            TRICARE program.
        (4) Transition plan.--Not later than March 1, 2017, the 
    Secretary shall provide to the Committees on Armed Services of the 
    Senate and the House of Representatives a briefing on the 
    transition plan of the Department of Defense for implementing an 
    annual enrollment period for TRICARE Prime and TRICARE Select 
    pursuant to section 1099(b)(1) of title 10, United States Code, as 
    amended by paragraph (1). Such plan shall include strategies to 
    notify each beneficiary of the changes to the TRICARE options and 
    the changes to the enrollment process.
    (e) Termination of TRICARE Standard and TRICARE Extra.--Beginning 
on January 1, 2018, the Secretary of Defense may not carry out TRICARE 
Standard and TRICARE Extra under the TRICARE program. The Secretary 
shall ensure that any individual who is covered under TRICARE Standard 
or TRICARE Extra as of December 31, 2017, enrolls in TRICARE Prime or 
TRICARE Select, as the case may be, as of January 1, 2018, for the 
individual to continue coverage under the TRICARE program.
    (f) Implementation Plan.--
        (1) In general.--Not later than June 1, 2017, the Secretary of 
    Defense shall submit to the Committees on Armed Services of the 
    House of Representatives and the Senate an implementation plan to 
    improve access to health care for TRICARE beneficiaries pursuant to 
    the amendments made by this section.
        (2) Elements.--The plan under paragraph (1) shall--
            (A) ensure that at least 85 percent of the beneficiary 
        population under TRICARE Select is covered by the network by 
        January 1, 2018;
            (B) ensure access standards for appointments for health 
        care that meet or exceed those of high-performing health care 
        systems in the United States, as determined by the Secretary;
            (C) establish mechanisms for monitoring compliance with 
        access standards;
            (D) establish health care provider-to-beneficiary ratios;
            (E) monitor on a monthly basis complaints by beneficiaries 
        with respect to network adequacy and the availability of health 
        care providers;
            (F) establish requirements for mechanisms to monitor the 
        responses to complaints by beneficiaries;
            (G) establish mechanisms to evaluate the quality metrics of 
        the network providers established under section 728;
            (H) include any recommendations for legislative action the 
        Secretary determines necessary to carry out the plan; and
            (I) include any other elements the Secretary determines 
        appropriate.
    (g) GAO Reviews.--
        (1) Implementation plan.--Not later than December 1, 2017, the 
    Comptroller General of the United States shall submit to the 
    Committees on Armed Services of the House of Representatives and 
    the Senate a review of the implementation plan of the Secretary 
    under paragraph (1) of subsection (f), including an assessment of 
    the adequacy of the plan in meeting the elements specified in 
    paragraph (2) of such subsection.
        (2) Network.--Not later than September 1, 2017, the Comptroller 
    General shall submit to the Committees on Armed Services of the 
    House of Representatives and the Senate a review of the network 
    established under TRICARE Extra, including the following:
            (A) An identification of the percent of beneficiaries who 
        are covered by the network.
            (B) An assessment of the extent to which beneficiaries are 
        able to obtain appointments under TRICARE Extra.
            (C) The percent of network providers under TRICARE Extra 
        that accept new patients under the TRICARE program.
            (D) An assessment of the satisfaction of beneficiaries 
        under TRICARE Extra.
    (h) Pilot Program on Incorporation of Value-based Health Care in 
Purchased Care Component of TRICARE Program.--
        (1) In general.--Not later than January 1, 2018, the Secretary 
    of Defense shall carry out a pilot program to demonstrate and 
    assess the feasibility of incorporating value-based health care 
    methodology in the purchased care component of the TRICARE program 
    by reducing copayments or cost shares for targeted populations of 
    covered beneficiaries in the receipt of high-value medications and 
    services and the use of high-value providers under such purchased 
    care component, including by exempting certain services from 
    deductible requirements.
        (2) Requirements.--In carrying out the pilot program under 
    paragraph (1), the Secretary shall--
            (A) identify each high-value medication and service that is 
        covered under the purchased care component of the TRICARE 
        program for which a reduction or elimination of the copayment 
        or cost share for such medication or service would encourage 
        covered beneficiaries to use the medication or service;
            (B) reduce or eliminate copayments or cost shares for 
        covered beneficiaries to receive high-value medications and 
        services;
            (C) reduce or eliminate copayments or cost shares for 
        covered beneficiaries to receive health care services from 
        high-value providers;
            (D) credit the amount of any reduction or elimination of a 
        copayment or cost share under subparagraph (B) or (C) for a 
        covered beneficiary towards meeting a deductible applicable to 
        the covered beneficiary in the purchased care component of the 
        TRICARE program to the same extent as if such reduction or 
        elimination had not applied; and
            (E) develop a process to reimburse high-value providers at 
        rates higher than those rates for health care providers that 
        are not high-value providers.
        (3) Report on value-based health care methodology.--Not later 
    than 180 days after the date of the enactment of this Act, the 
    Secretary shall submit to the Committees on Armed Services of the 
    Senate and the House of Representatives a report that includes the 
    following:
            (A) A list of each high-value medication and service 
        identified under paragraph (2)(A) for which the copayment or 
        cost share amount will be reduced or eliminated under the pilot 
        program to encourage covered beneficiaries to use such 
        medications and services through the purchased care component 
        of the TRICARE program.
            (B) For each high-value medication and service identified 
        under paragraph (2)(A), the amount of the copayment or cost 
        share required under the purchased care component of the 
        TRICARE program and the amount of any reduction or elimination 
        of such copayment or cost share pursuant to the pilot program.
            (C) A description of a plan to identify and communicate to 
        covered beneficiaries, through multiple communication media--
                (i) the list of high-value medications and services 
            described in subparagraph (A); and
                (ii) a list of high-value providers.
            (D) A description of modifications, if any, to existing 
        health care contracts that may be required to implement value-
        based health care methodology in the purchased care component 
        of the TRICARE program under the pilot program and the 
        estimated costs of those contract modifications.
        (4) Comptroller general preliminary review and assessment.--
            (A) Not later than March 1, 2021, the Comptroller General 
        of the United States shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a 
        review and assessment of the preliminary results of the pilot 
        program.
            (B) The review and assessment required under subparagraph 
        (A) shall include the following:
                (i) An assessment of the extent of the use of value-
            based health care methodology in the purchased care 
            component of the TRICARE program under the pilot program.
                (ii) An analysis demonstrating how reducing or 
            eliminating the copayment or cost share for each high-value 
            medication and service identified under paragraph (2)(A) 
            resulted in--

                    (I) increased adherence to medication regimens;
                    (II) improvement of quality measures;
                    (III) improvement of health outcomes;
                    (IV) reduction of number of emergency room visits 
                or hospitalizations; and
                    (V) enhancement of experience of care for covered 
                beneficiaries.

                (iii) Such recommendations for incentivizing the use of 
            high-value medications and services to improve health 
            outcomes and the experience of care for beneficiaries as 
            the Comptroller General considers appropriate.
        (5) Review and assessment of pilot program.--
            (A) Not later than January 1, 2023, the Secretary shall 
        submit to the Committees on Armed Services of the Senate and 
        the House of Representatives a review and assessment of the 
        pilot program.
            (B) The review and assessment required under subparagraph 
        (A) shall include the following:
                (i) An assessment of the extent of the use of value-
            based health care methodology in the purchased care 
            component of the TRICARE program under the pilot program.
                (ii) An analysis demonstrating how reducing or 
            eliminating the copayment or cost share for each high-value 
            medication and service identified under paragraph (2)(A) 
            resulted in--

                    (I) increased adherence to medication regimens;
                    (II) improvement of quality measures;
                    (III) improvement of health outcomes; and
                    (IV) enhancement of experience of care for covered 
                beneficiaries.

                (iii) A cost-benefit analysis of the implementation of 
            value-based health care methodology in the purchased care 
            component of the TRICARE program under the pilot program.
                (iv) Such recommendations for incentivizing the use of 
            high-value medications and services to improve health 
            outcomes and the experience of care for covered 
            beneficiaries as the Secretary considers appropriate.
        (6) Termination.--The Secretary may not carry out the pilot 
    program after December 31, 2022.
    (i) Definitions.--In this section:
        (1) The terms ``uniformed services'', ``covered beneficiary'', 
    ``TRICARE Extra'', ``TRICARE for Life'', ``TRICARE Prime'', and 
    ``TRICARE Standard'', have the meaning given those terms in section 
    1072 of title 10, United States Code, as amended by subsection (j).
        (2) The term ``TRICARE Select'' means the self-managed, 
    preferred-provider network option under the TRICARE program 
    established by section 1075 of such title, as added by subsection 
    (a).
        (3) The term ``chronic conditions'' includes diabetes, chronic 
    obstructive pulmonary disease, asthma, congestive heart failure, 
    hypertension, history of stroke, coronary artery disease, mood 
    disorders, and such other diseases or conditions as the Secretary 
    considers appropriate.
        (4) The term ``high-value medications and services'' means 
    prescription medications and clinical services for the management 
    of chronic conditions that the Secretary determines would improve 
    health outcomes and create health value for covered beneficiaries 
    (such as preventive care, primary and specialty care, diagnostic 
    tests, procedures, and durable medical equipment).
        (5) The term ``high-value provider'' means an individual or 
    institutional health care provider that provides health care under 
    the purchased care component of the TRICARE program and that 
    consistently improves the experience of care, meets established 
    quality of care and effectiveness metrics, and reduces the per 
    capita costs of health care.
        (6) The term ``value-based health care methodology'' means a 
    methodology for identifying specific prescription medications and 
    clinical services provided under the TRICARE program for which 
    reduction of copayments, cost shares, or both, would improve the 
    management of specific chronic conditions because of the high value 
    and clinical effectiveness of such medications and services for 
    such chronic conditions.
    (j) Conforming Amendments.--
        (1) In general.--Title 10, United States Code, is amended as 
    follows:
            (A) Section 1072 is amended--
                (i) by striking paragraph (7) and inserting the 
            following:
        ``(7) The term `TRICARE program' means the various programs 
    carried out by the Secretary of Defense under this chapter and any 
    other provision of law providing for the furnishing of medical and 
    dental care and health benefits to members and former members of 
    the uniformed services and their dependents, including the 
    following health plan options:
            ``(A) TRICARE Prime.
            ``(B) TRICARE Select.
            ``(C) TRICARE for Life.''; and
                (ii) by adding at the end the following new paragraphs:
        ``(11) The term `TRICARE Extra' means the preferred-provider 
    option of the TRICARE program made available prior to January 1, 
    2018, under which TRICARE Standard beneficiaries may obtain 
    discounts on cost sharing as a result of using TRICARE network 
    providers.
        ``(12) The term `TRICARE Select' means the self-managed, 
    preferred-provider network option under the TRICARE program 
    established by section 1075 of this title.
        ``(13) The term `TRICARE for Life' means the Medicare 
    wraparound coverage option of the TRICARE program made available to 
    the beneficiary by reason of section 1086(d) of this title.
        ``(14) The term `TRICARE Prime' means the managed care option 
    of the TRICARE program.
        ``(15) The term `TRICARE Standard' means the TRICARE program 
    made available prior to January 1, 2018, covering--
            ``(A) medical care to which a dependent described in 
        section 1076(a)(2) of this title is entitled; and
            ``(B) health benefits contracted for under the authority of 
        section 1079(a) of this title and subject to the same rates and 
        conditions as apply to persons covered under that section.''.
            (B) Section 1076d is amended--
                (i) in subsection (d)(1), by inserting after 
            ``coverage.'' the following: ``Such premium shall apply 
            instead of any enrollment fees required under section 1075 
            of this section.''; and
                (ii) in subsection (f), by striking paragraph (2) and 
            inserting the following new paragraph:
        ``(2) The term `TRICARE Reserve Select' means the TRICARE 
    Select self-managed, preferred-provider network option under 
    section 1075 made available to beneficiaries by reason of this 
    section and in accordance with subsection (d)(1).''; and
                (iii) by striking ``TRICARE Standard'' each place it 
            appears (including in the heading of such section) and 
            inserting ``TRICARE Reserve Select''.
            (C) Section 1076e is amended--
                (i) in subsection (d)(1), by inserting after 
            ``coverage.'' the following: ``Such premium shall apply 
            instead of any enrollment fees required under section 1075 
            of this section.''; and
                (ii) in subsection (f), by striking paragraph (2) and 
            inserting the following new paragraph:
        ``(2) The term `TRICARE Retired Reserve' means the TRICARE 
    Select self-managed, preferred-provider network option under 
    section 1075 made available to beneficiaries by reason of this 
    section and in accordance with subsection (d)(1).'';
                (iii) in subsection (b), by striking ``TRICARE Standard 
            coverage at'' and inserting ``TRICARE coverage at''; and
                (iv) by striking ``TRICARE Standard'' each place it 
            appears (including in the heading of such section) and 
            inserting ``TRICARE Retired Reserve''.
            (D) Section 1079a is amended--
                (i) in the section heading, by striking ``CHAMPUS'' and 
            inserting ``TRICARE program''; and
                (ii) by striking ``the Civilian Health and Medical 
            Program of the Uniformed Services'' and inserting ``the 
            TRICARE program''.
            (E) Section 1099(c) is amended by striking paragraph (2) 
        and inserting the following new paragraph:
        ``(2) A plan under the TRICARE program.''.
            (F) Section 1110b(c)(1) is amended by inserting after 
        ``(b).'' the following: ``Such premium shall apply instead of 
        any enrollment fees required under section 1075 of this 
        section.''.
        (2) Clerical amendments.--The table of sections at the 
    beginning of chapter 55 of title 10, United States Code, is further 
    amended--
            (A) in the item relating to section 1076d, by striking 
        ``TRICARE Standard'' and inserting ``TRICARE Reserve Select'';
            (B) in the item relating to section 1076e, by striking 
        ``TRICARE Standard'' and inserting ``TRICARE Retired Reserve'';
            (C) in the item relating to section 1079a, by striking 
        ``CHAMPUS'' and inserting ``TRICARE program''; and
            (D) in the item relating to section 1095f, by striking 
        ``for specialty health care'' and inserting ``and 
        preauthorizations under TRICARE Prime''.
        (3) Conforming style.--Any new language inserted or added to 
    title 10, United States Code, by an amendment made by this 
    subsection shall conform to the typeface and typestyle of the 
    matter in which the language is so inserted or added.
    (k) Application.--The amendments made by this section shall apply 
with respect to the provision of health care under the TRICARE program 
beginning on January 1, 2018.
    SEC. 702. REFORM OF ADMINISTRATION OF THE DEFENSE HEALTH AGENCY AND 
      MILITARY MEDICAL TREATMENT FACILITIES.
    (a) Administration.--
        (1) In general.--Chapter 55 of title 10, United States Code, is 
    amended by inserting after section 1073b the following new section:
``Sec. 1073c. Administration of Defense Health Agency and military 
     medical treatment facilities
    ``(a) Administration of Military Medical Treatment Facilities.--(1) 
Beginning October 1, 2018, the Director of the Defense Health Agency 
shall be responsible for the administration of each military medical 
treatment facility, including with respect to--
        ``(A) budgetary matters;
        ``(B) information technology;
        ``(C) health care administration and management;
        ``(D) administrative policy and procedure;
        ``(E) miliary medical construction; and
        ``(F) any other matters the Secretary of Defense determines 
    appropriate.
    ``(2) The commander of each military medical treatment facility 
shall be responsible for--
        ``(A) ensuring the readiness of the members of the armed forces 
    and civilian employees at such facility; and
        ``(B) furnishing the health care and medical treatment provided 
    at such facility.
    ``(3) The Secretary of Defense shall establish within the Defense 
Health Agency a professional staff to provide policy, oversight, and 
direction to carry out subsection (a). The Secretary shall carry out 
this paragraph by appointing the positions specified in subsections (b) 
and (c).
    ``(b) DHA Assistant Director.--(1) There is in the Defense Health 
Agency an Assistant Director for Health Care Administration. The 
Assistant Director shall--
        ``(A) be a career appointee within the Department; and
        ``(B) report directly to the Director of the Defense Health 
    Agency.
    ``(2) The Assistant Director shall be appointed from among 
individuals who have equivalent education and experience as a chief 
executive officer leading a large, civilian health care system.
    ``(3) The Assistant Director shall be responsible for the 
following:
        ``(A) Establishing priorities for health care administration 
    and management.
        ``(B) Establishing policies, procedures, and direction for the 
    provision of direct care at military medical treatment facilities.
        ``(C) Establishing priorities for budgeting matters with 
    respect to the provision of direct care at military medical 
    treatment facilities.
        ``(D) Establishing policies, procedures, and direction for 
    clinic management and operations at military medical treatment 
    facilities.
        ``(E) Establishing priorities for information technology at and 
    between the military medical treatment facilities.
    ``(c) DHA Deputy Assistant Directors.--(1)(A) There is in the 
Defense Health Agency a Deputy Assistant Director for Information 
Operations.
    ``(B) The Deputy Assistant Director for Information Operations 
shall be responsible for policies, management, and execution of 
information technology operations at and between the military medical 
treatment facilities.
    ``(2)(A) There is in the Defense Health Agency a Deputy Assistant 
Director for Financial Operations.
    ``(B) The Deputy Assistant Director for Financial Operations shall 
be responsible for the policy, procedures, and direction of budgeting 
matters and financial management with respect to the provision of 
direct care across the military health system.
    ``(3)(A) There is in the Defense Health Agency a Deputy Assistant 
Director for Health Care Operations.
    ``(B) The Deputy Assistant Director for Health Care Operations 
shall be responsible for the policy, procedures, and direction of 
health care administration in the military medical treatment 
facilities.
    ``(4)(A) There is in the Defense Health Agency a Deputy Assistant 
Director for Medical Affairs.
    ``(B) The Deputy Assistant Director for Medical Affairs shall be 
responsible for policy, procedures, and direction of clinical quality 
and process improvement, patient safety, infection control, graduate 
medical education, clinical integration, utilization review, risk 
management, patient experience, and civilian physician recruiting.
    ``(5) Each Deputy Assistant Director appointed under paragraphs (1) 
through (4) shall report directly to the Assistant Director for Health 
Care Administration.
    ``(d) Certain Responsibilities of DHA Director.--(1) In addition to 
the other duties of the Director of the Defense Health Agency, the 
Director shall coordinate with the Joint Staff Surgeon to ensure that 
the Director most effectively carries out the responsibilities of the 
Defense Health Agency as a combat support agency under section 193 of 
this title.
    ``(2) The responsibilities of the Director shall include the 
following:
        ``(A) Ensuring that the Defense Health Agency meets the 
    operational needs of the commanders of the combatant commands.
        ``(B) Coordinating with the military departments to ensure that 
    the staffing at the military medical treatment facilities supports 
    readiness requirements for members of the armed forces and health 
    care personnel.
    ``(e) Definitions.--In this section:
        ``(1) The term `career appointee' has the meaning given that 
    term in section 3132(a)(4) of title 5.
        ``(2) The term `Defense Health Agency' means the Defense Agency 
    established pursuant to Department of Defense Directive 5136.13, or 
    such successor Defense Agency.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 1073b the following new item:

``1073c. Administration of Defense Health Agency and military medical 
          treatment facilities.''.

    (b) Positions of Surgeon General in the Armed Forces.--
        (1) Surgeon general of the army.--Section 3036 of title 10, 
    United States Code, is amended--
            (A) in subsection (d), by striking ``(1)'';
            (B) by redesignating subsection (e) as subsection (g);
            (C) by inserting after subsection (d) a new subsection (e);
            (D) by transferring paragraphs (2) and (3) of subsection 
        (d) to subsection (e), as added by subparagraph (C), and 
        redesignating such paragraphs as paragraphs (1) and (2), 
        respectively; and
            (E) by adding after subsection (e), as added by 
        subparagraph (C), the following new subsection (f):
    ``(f)(1) The Surgeon General serves as the principal advisor to the 
Secretary of the Army and the Chief of Staff of the Army on all health 
and medical matters of the Army, including strategic planning and 
policy development relating to such matters.
    ``(2) The Surgeon General serves as the chief medical advisor of 
the Army to the Director of the Defense Health Agency on matters 
pertaining to military health readiness requirements and safety of 
members of the Army.
    ``(3) The Surgeon General, acting under the authority, direction, 
and control of the Secretary of the Army, shall recruit, organize, 
train, and equip, medical personnel of the Army.''.
        (2) Surgeon general of the navy.--
            (A) In general.--Section 5137 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 5137. Surgeon General: appointment; duties
    ``(a) Appointment.--The Surgeon General of the Navy shall be 
appointed by the President, by and with the advice and consent of the 
Senate, for a term of four years, from officers on the active-duty list 
of the Navy in any corps of the Navy Medical Department.
    ``(b) Duties.--(1) The Surgeon General serves as the Chief of the 
Bureau of Medicine and Surgery and serves as the principal advisor to 
the Secretary of the Navy and the Chief of Naval Operations on all 
health and medical matters of the Navy and the Marine Corps, including 
strategic planning and policy development relating to such matters.
    ``(2) The Surgeon General serves as the chief medical advisor of 
the Navy and the Marine Corps to the Director of the Defense Health 
Agency on matters pertaining to military health readiness requirements 
and safety of members of the Navy and the Marine Corps.
    ``(3) The Surgeon General, acting under the authority, direction, 
and control of the Secretary of the Navy, shall recruit, organize, 
train, and equip, medical personnel of the Navy and the Marine 
Corps.''.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 513 of such title is amended by striking 
        the item relating to section 5137 and inserting the following 
        new item:

``5137. Surgeon General: appointment; duties.''.

        (3) Surgeon general of the air force.--
            (A) In general.--Section 8036 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 8036. Surgeon General: appointment; duties
    ``(a) Appointment.--The Surgeon General of the Air Force shall be 
appointed by the President, by and with the advice and consent of the 
Senate from officers of the Air Force who are in the Air Force medical 
department.
    ``(b) Duties.--(1) The Surgeon General serves as the principal 
advisor to the Secretary of the Air Force and the Chief of Staff of the 
Air Force on all health and medical matters of the Air Force, including 
strategic planning and policy development relating to such matters.
    ``(2) The Surgeon General serves as the chief medical advisor of 
the Air Force to the Director of the Defense Health Agency on matters 
pertaining to military health readiness requirements and safety of 
members of the Air Force.
    ``(3) The Surgeon General, acting under the authority, direction, 
and control of the Secretary of the Air Force, shall recruit, organize, 
train, and equip, medical personnel of the Air Force.''.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 805 of such title is amended by striking 
        the item relating to section 8036 and inserting the following 
        new item:

``8036. Surgeon General: appointment; duties.''.

    (c) Appointments.--The Secretary of Defense shall make appointments 
of the positions under section 1073c of title 10, United States Code, 
as added by subsection (a)--
        (1) by not later than October 1, 2018; and
        (2) by not increasing the number of full-time equivalent 
    employees of the Defense Health Agency.
    (d) Implementation Plan.--
        (1) In general.--The Secretary of Defense shall develop a plan 
    to implement section 1073c of title 10, United States Code, as 
    added by subsection (a).
        (2) Elements.--The plan developed under paragraph (1) shall 
    include the following:
            (A) How the Secretary will carry out subsection (a) of such 
        section 1073c.
            (B) Efforts to eliminate duplicative activities carried out 
        by the elements of the Defense Health Agency and the military 
        departments.
            (C) Efforts to maximize efficiencies in the activities 
        carried out by the Defense Health Agency.
            (D) How the Secretary will implement such section 1073c in 
        a manner that reduces the number of members of the Armed 
        Forces, civilian employees who are full-time equivalent 
        employees, and contractors relating to the headquarters 
        activities of the military health system, as of the date of the 
        enactment of this Act.
    (e) Reports.--
        (1) Interim report.--Not later than March 1, 2017, the 
    Secretary shall submit to the Committees on Armed Services of the 
    House of Representatives and the Senate a report containing--
            (A) a preliminary draft of the plan developed under 
        subsection (d)(1); and
            (B) any recommendations for legislative actions the 
        Secretary determines necessary to carry out the plan.
        (2) Final report.--Not later than March 1, 2018, the Secretary 
    shall submit to the Committees on Armed Services of the House of 
    Representatives and the Senate a report containing the final 
    version of the plan developed under subsection (d)(1).
        (3) Comptroller general reviews.--
            (A) The Comptroller General of the United States shall 
        submit to the Committees on Armed Services of the House of 
        Representatives and the Senate--
                (i) a review of the preliminary draft of the plan 
            submitted under paragraph (1) by not later than September 
            1, 2017; and
                (ii) a review of the final version of the plan 
            submitted under paragraph (2) by not later than September 
            1, 2018.
            (B) Each review of the plan conducted under subparagraph 
        (A) shall determine whether the Secretary has addressed the 
        required elements for the plan under subsection (d)(2).
    SEC. 703. MILITARY MEDICAL TREATMENT FACILITIES.
    (a) Administration.--
        (1) In general.--Chapter 55 of title 10, United States Code, as 
    amended by section 702, is further amended by inserting after 
    section 1073c the following new section:
``Sec. 1073d. Military medical treatment facilities
    ``(a) In General.--To support the medical readiness of the armed 
forces and the readiness of medical personnel, the Secretary of 
Defense, in consultation with the Secretaries of the military 
departments, shall maintain the military medical treatment facilities 
described in subsections (b), (c), and (d).
    ``(b) Medical Centers.--(1) The Secretary of Defense shall maintain 
medical centers in areas with a large population of members of the 
armed forces and covered beneficiaries.
    ``(2) Medical centers shall serve as referral facilities for 
members and covered beneficiaries who require comprehensive health care 
services that support medical readiness.
    ``(3) Medical centers shall consist of the following:
        ``(A) Inpatient and outpatient tertiary care facilities that 
    incorporate specialty and subspecialty care.
        ``(B) Graduate medical education programs.
        ``(C) Residency training programs.
        ``(D) Level one or level two trauma care capabilities.
    ``(4) The Secretary may designate a medical center as a regional 
center of excellence for unique and highly specialized health care 
services, including with respect to polytrauma, organ transplantation, 
and burn care.
    ``(c) Hospitals.--(1) The Secretary of Defense shall maintain 
hospitals in areas where civilian health care facilities are unable to 
support the health care needs of members of the armed forces and 
covered beneficiaries.
    ``(2) Hospitals shall provide--
        ``(A) inpatient and outpatient health services to maintain 
    medical readiness; and
        ``(B) such other programs and functions as the Secretary 
    determines appropriate.
    ``(3) Hospitals shall consist of inpatient and outpatient care 
facilities with limited specialty care that the Secretary determines--
        ``(A) is cost effective; or
        ``(B) is not available at civilian health care facilities in 
    the area of the hospital.
    ``(d) Ambulatory Care Centers.--(1) The Secretary of Defense shall 
maintain ambulatory care centers in areas where civilian health care 
facilities are able to support the health care needs of members of the 
armed forces and covered beneficiaries.
    ``(2) Ambulatory care centers shall provide the outpatient health 
services required to maintain medical readiness, including with respect 
to partnerships established pursuant to section 706 of the National 
Defense Authorization Act for Fiscal Year 2017.
    ``(3) Ambulatory care centers shall consist of outpatient care 
facilities with limited specialty care that the Secretary determines--
        ``(A) is cost effective; or
        ``(B) is not available at civilian health care facilities in 
    the area of the ambulatory care center.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter, as amended by section 702, is further amended by 
    inserting after the item relating to section 1073c the following 
    new item:

``1073d. Military medical treatment facilities.''.

        (3) Satellite centers.--In addition to the centers of 
    excellence designated under section 1073d(b)(4) of title 10, United 
    States Code, as added by paragraph (1), the Secretary of Defense 
    may establish satellite centers of excellence to provide specialty 
    care for certain conditions, including with respect to--
            (A) post-traumatic stress;
            (B) traumatic brain injury; and
            (C) such other conditions as the Secretary considers 
        appropriate.
    (b) Exception.--In carrying out section 1073d of title 10, United 
States Code, as added by subsection (a)(1), the Secretary of Defense 
may not restructure or realign the infrastructure of, or modify the 
health care services provided by, a military medical treatment facility 
unless the Secretary determines that, if such a restructure, 
realignment, or modification will eliminate the ability of a covered 
beneficiary to access health care services at a military medical 
treatment facility, the covered beneficiary will be able to access such 
health care services through the purchased care component of the 
TRICARE program.
    (c) Update of Study.--
        (1) In general.--The Secretary of Defense, in collaboration 
    with the Secretaries of the military departments, shall update the 
    report described in paragraph (2) to address the restructuring or 
    realignment of military medical treatment facilities pursuant to 
    section 1073d of title 10, United States Code, as added by 
    subsection (a), including with respect to any expansions or 
    consolidations of such facilities.
        (2) Report described.--The report described in this paragraph 
    is the Military Health System Modernization Study dated May 29th, 
    2015, required by section 713(a)(2) of the Carl Levin and Howard P. 
    ``Buck'' McKeon National Defense Authorization Act for Fiscal Year 
    2015 (Public Law 113-291; 128 Stat. 3414).
        (3) Submission.--Not later than 270 days after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    congressional defense committees the updated report under paragraph 
    (1).
    (d) Implementation Plan.--
        (1) In general.--Not later than two years after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    congressional defense committees an implementation plan to 
    restructure or realign the military medical treatment facilities 
    pursuant to section 1073d of title 10, United States Code, as added 
    by subsection (a).
        (2) Elements.--The implementation plan under paragraph (1) 
    shall include the following:
            (A) With respect to each military medical treatment 
        facility--
                (i) whether the facility will be realigned or 
            restructured under the plan;
                (ii) whether the functions of such facility will be 
            expanded or consolidated;
                (iii) the costs of such realignment or restructuring;
                (iv) a description of any changes to the military and 
            civilian personnel assigned to such facility as of the date 
            of the plan;
                (v) a timeline for such realignment or restructuring;
                (vi) the justifications for such realignment or 
            restructuring, including an assessment of the capacity of 
            the civilian health care facilities located near such 
            facility;
                (vii) a comprehensive assessment of the health care 
            services provided at the facility;
                (viii) a description of the current accessibility of 
            covered beneficiaries to health care services provided at 
            the facility and proposed modifications to that 
            accessibility, including with respect to types of services 
            provided;
                (ix) a description of the current availability of 
            urgent care, emergent care, and specialty care at the 
            facility and in the TRICARE provider network in the area in 
            which the facility is located, and proposed modifications 
            to the availability of such care;
                (x) a description of the current level of coordination 
            between the facility and local health care providers in the 
            area in which the facility is located and proposed 
            modifications to such level of coordination; and
                (xi) a description of any unique challenges to 
            providing health care at the facility, with a focus on 
            challenges relating to rural, remote, and insular areas, as 
            appropriate.
            (B) A description of the relocation of the graduate medical 
        education programs and the residency programs.
            (C) A description of the plans to assist members of the 
        Armed Forces and covered beneficiaries with travel and lodging, 
        if necessary, in connection with the receipt of specialty care 
        services at regional centers of excellence designated under 
        subsection (b)(4) of such section 1073d.
            (D) A description of how the Secretary will carry out 
        subsection (b).
        (3) GAO report.--Not later than 60 days after the date on which 
    the Secretary of Defense submits the report under paragraph (1), 
    the Comptroller General of the United States shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives a review of such report.
    (e) Definitions.--In this section, the terms ``covered 
beneficiary'' and ``TRICARE program'' have the meaning given those 
terms in section 1072 of title 10, United States Code.
    SEC. 704. ACCESS TO URGENT AND PRIMARY CARE UNDER TRICARE PROGRAM.
    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1077 the following new section:
``Sec. 1077a. Access to military medical treatment facilities and other 
     facilities
    ``(a) Urgent Care.--(1) The Secretary of Defense shall ensure that 
military medical treatment facilities, at locations the Secretary 
determines appropriate, provide urgent care services for members of the 
armed forces and covered beneficiaries until 11:00 p.m. each day.
    ``(2) With respect to areas in which a military medical treatment 
facility covered by paragraph (1) is not located, the Secretary shall 
ensure that members of the armed forces and covered beneficiaries may 
access urgent care clinics through the health care provider network 
under the TRICARE program.
    ``(3) A covered beneficiary may access urgent care services without 
the need for preauthorization for such services.
    ``(4) The Secretary shall--
        ``(A) publish information about changes in access to urgent 
    care under the TRICARE program--
            ``(i) on the primary publicly available Internet website of 
        the Department; and
            ``(ii) on the primary publicly available Internet website 
        of each military medical treatment facility; and
        ``(B) ensure that such information is made available on the 
    publicly available Internet website of each current managed care 
    support contractor that has established a health care provider 
    network under the TRICARE program.
    ``(b) Nurse Advice Line.--The Secretary shall ensure that the nurse 
advice line of the Department directs covered beneficiaries seeking 
access to care to the source of the most appropriate level of health 
care required to treat the medical conditions of the beneficiaries, 
including urgent care services described in subsection (a).
    ``(c) Primary Care Clinics.--(1) The Secretary shall ensure that 
primary care clinics at military medical treatment facilities are 
available for members of the armed forces and covered beneficiaries 
between the hours determined appropriate under paragraph (2), including 
with respect to expanded hours described in subparagraph (B) of such 
paragraph.
    ``(2)(A) The Secretary shall determine the hours that each primary 
care clinic at a military medical treatment facility is available for 
members of the armed forces and covered beneficiaries based on--
        ``(i) the needs of the military medical treatment facility to 
    meet the access standards under the TRICARE Prime program; and
        ``(ii) the primary care utilization patterns of members and 
    covered beneficiaries at such military medical treatment facility.
    ``(B) The primary care clinic hours at a military medical treatment 
facility determined under subparagraph (A) shall include expanded hours 
beyond regular business hours during weekdays and the weekend if the 
Secretary determines under such subparagraph that sufficient demand 
exists at the military medical treatment facility for such expanded 
primary care clinic hours.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1077 the following new item:

``1077a. Access to military medical treatment facilities and other 
          facilities''.

    (c) Implementation.--The Secretary of Defense shall implement--
        (1) subsection (a) of section 1077a of title 10, United States 
    Code, as added by subsection (a) of this section, by not later than 
    one year after the date of the enactment of this Act; and
        (2) subsection (c) of such section by not later than 180 days 
    after the date of the enactment of this Act.
    SEC. 705. VALUE-BASED PURCHASING AND ACQUISITION OF MANAGED CARE 
      SUPPORT CONTRACTS FOR TRICARE PROGRAM.
    (a) Value-based Health Care.--
        (1) In general.--The Secretary of Defense shall develop and 
    implement value-based incentive programs as part of any contract 
    awarded under chapter 55 of title 10, United States Code, for the 
    provision of health care services to covered beneficiaries to 
    encourage health care providers under the TRICARE program 
    (including physicians, hospitals, and other persons and facilities 
    involved in providing such health care services) to improve the 
    following:
            (A) The quality of health care provided to covered 
        beneficiaries under the TRICARE program.
            (B) The experience of covered beneficiaries in receiving 
        health care under the TRICARE program.
            (C) The health of covered beneficiaries.
        (2) Value-based incentive programs.--
            (A) Development.--In developing value-based incentive 
        programs under paragraph (1), the Secretary shall--
                (i) link payments to health care providers under the 
            TRICARE program to improved performance with respect to 
            quality, cost, and reducing the provision of inappropriate 
            care;
                (ii) consider the characteristics of the population of 
            covered beneficiaries affected by the value-based incentive 
            program;
                (iii) consider how the value-based incentive program 
            would affect the receipt of health care under the TRICARE 
            program by such covered beneficiaries;
                (iv) establish or maintain an assurance that such 
            covered beneficiaries will have timely access to health 
            care during the operation of the value-based incentive 
            program;
                (v) ensure that such covered beneficiaries do not incur 
            any additional costs by reason of the value-based incentive 
            program; and
                (vi) consider such other factors as the Secretary 
            considers appropriate.
            (B) Scope and metrics.--With respect to a value-based 
        incentive program developed and implemented under paragraph 
        (1), the Secretary shall ensure that--
                (i) the size, scope, and duration of the value-based 
            incentive program is reasonable in relation to the purpose 
            of the value-based incentive program; and
                (ii) the value-based incentive program relies on the 
            core quality performance metrics adopted pursuant to 
            section 728.
        (3) Use of existing models.--In developing a value-based 
    incentive program under paragraph (1), the Secretary may adapt a 
    value-based incentive program conducted by a TRICARE managed care 
    support contractor, the Centers for Medicare & Medicaid Services, 
    or any other Federal Government, State government, or commercial 
    health care program.
    (b) Transfer of Contracting Responsibility.--With respect to the 
acquisition of any managed care support contracts under the TRICARE 
program initiated after the date of the enactment of this Act, the 
Secretary of Defense shall transfer contracting responsibility for the 
solicitation and award of such contracts from the Defense Health Agency 
to the Office of the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.
    (c) Acquisition of Contracts.--
        (1) Strategy.--Not later than January 1, 2018, the Secretary of 
    Defense shall develop and implement a strategy to ensure that 
    managed care support contracts under the TRICARE program entered 
    into with private sector entities, other than overseas medical 
    support contracts--
            (A) improve access to health care for covered 
        beneficiaries;
            (B) improve health outcomes for covered beneficiaries;
            (C) improve the quality of health care received by covered 
        beneficiaries;
            (D) enhance the experience of covered beneficiaries in 
        receiving health care; and
            (E) lower per capita costs to the Department of Defense of 
        health care provided to covered beneficiaries.
        (2) Applicability of strategy.--
            (A) In general.--The strategy required by paragraph (1) 
        shall apply to all managed care support contracts under the 
        TRICARE program entered into with private sector entities.
            (B) Modification of contracts.--Contracts entered into 
        prior to the implementation of the strategy required by 
        paragraph (1) shall be modified to ensure consistency with such 
        strategy.
        (3) Local, regional, and national health plans.--In developing 
    and implementing the strategy required by paragraph (1), the 
    Secretary shall ensure that local, regional, and national health 
    plans have an opportunity to participate in the competition for 
    managed care support contracts under the TRICARE program.
        (4) Continuous innovation.--The strategy required by paragraph 
    (1) shall include incentives for the incorporation of innovative 
    ideas and solutions into managed care support contracts under the 
    TRICARE program through the use of teaming agreements, 
    subcontracts, and other contracting mechanisms that can be used to 
    develop and continuously refresh high-performing networks of health 
    care providers at the national, regional, and local level.
        (5) Elements of strategy.--The strategy required by paragraph 
    (1) shall provide for the following with respect to managed care 
    support contracts under the TRICARE program:
            (A) The maximization of flexibility in the design and 
        configuration of networks of individual and institutional 
        health care providers, including a focus on the development of 
        high-performing networks of health care providers.
            (B) The establishment of an integrated medical management 
        system between military medical treatment facilities and health 
        care providers in the private sector that, when appropriate, 
        effectively coordinates and integrates health care across the 
        continuum of care.
            (C) With respect to telehealth services--
                (i) the maximization of the use of such services to 
            provide real-time interactive communications between 
            patients and health care providers and remote patient 
            monitoring; and
                (ii) the use of standardized payment methods to 
            reimburse health care providers for the provision of such 
            services.
            (D) The use of value-based reimbursement methodologies, 
        including through the use of value-based incentive programs 
        under subsection (a), that transfer financial risk to health 
        care providers and managed care support contractors.
            (E) The use of financial incentives for contractors and 
        health care providers to receive an equitable share in the cost 
        savings to the Department resulting from improvement in health 
        outcomes for covered beneficiaries and the experience of 
        covered beneficiaries in receiving health care.
            (F) The use of incentives that emphasize prevention and 
        wellness for covered beneficiaries receiving health care 
        services from private sector entities to seek such services 
        from high-value health care providers.
            (G) The adoption of a streamlined process for enrollment of 
        covered beneficiaries to receive health care and timely 
        assignment of primary care managers to covered beneficiaries.
            (H) The elimination of the requirement for a referral to be 
        authorized prior receiving specialty care services at a 
        facility of the Department of Defense or through the TRICARE 
        program.
            (I) The use of incentives to encourage covered 
        beneficiaries to participate in medical and lifestyle 
        intervention programs.
        (6) Rural, remote, and isolated areas.--In developing and 
    implementing the strategy required by paragraph (1), the Secretary 
    shall--
            (A) assess the unique characteristics of providing health 
        care services in Alaska, Hawaii, and the territories and 
        possessions of the United States, and in rural, remote, or 
        isolated locations in the contiguous 48 States;
            (B) consider the various challenges inherent in developing 
        robust networks of health care providers in those locations;
            (C) develop a provider reimbursement rate structure in 
        those locations that ensures--
                (i) timely access of covered beneficiaries to health 
            care services;
                (ii) the delivery of high-quality primary and specialty 
            care;
                (iii) improvement in health outcomes for covered 
            beneficiaries; and
                (iv) an enhanced experience of care for covered 
            beneficiaries; and
            (D) ensure that managed care support contracts under the 
        TRICARE program in those locations will--
                (i) establish individual and institutional provider 
            networks that will provide timely access to care for 
            covered beneficiaries, including pursuant to such networks 
            relating to an Indian tribe or tribal organization that is 
            party to the Alaska Native Health Compact with the Indian 
            Health Service or has entered into a contract with the 
            Indian Health Service to provide health care in rural 
            Alaska or other locations in the United States; and
                (ii) deliver high-quality care, better health outcomes, 
            and a better experience of care for covered beneficiaries.
    (d) Report Prior to Certain Contract Modifications.--Not later than 
60 days before the date on which the Secretary of Defense first 
modifies a contract awarded under chapter 55 of title 10, United States 
Code, to implement a value-based incentive program under subsection 
(a), or the managed care support contract acquisition strategy under 
subsection (c), the Secretary shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on any 
implementation plan of the Secretary with respect to such value-based 
incentive program or managed care support contract acquisition 
strategy.
    (e) Comptroller General Report.--
        (1) In general.--Not later than 180 days after the date on 
    which the Secretary submits the report under subsection (d), the 
    Comptroller General of the United States shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives a report that assesses the compliance of the 
    Secretary of Defense with the requirements of subsection (a) and 
    subsection (c).
        (2) Elements.--The report required by paragraph (1) shall 
    include an assessment of the following:
            (A) Whether the approach of the Department of Defense for 
        acquiring managed care support contracts under the TRICARE 
        program--
                (i) improves access to care;
                (ii) improves health outcomes;
                (iii) improves the experience of care for covered 
            beneficiaries; and
                (iv) lowers per capita health care costs.
            (B) Whether the Department has, in its requirements for 
        managed care support contracts under the TRICARE program, 
        allowed for--
                (i) maximum flexibility in network design and 
            development;
                (ii) integrated medical management between military 
            medical treatment facilities and network providers;
                (iii) the maximum use of the full range of telehealth 
            services;
                (iv) the use of value-based reimbursement methods that 
            transfer financial risk to health care providers and 
            managed care support contractors;
                (v) the use of prevention and wellness incentives to 
            encourage covered beneficiaries to seek health care 
            services from high-value providers;
                (vi) a streamlined enrollment process and timely 
            assignment of primary care managers;
                (vii) the elimination of the requirement to seek 
            authorization for referrals for specialty care services;
                (viii) the use of incentives to encourage covered 
            beneficiaries to engage in medical and lifestyle 
            intervention programs; and
                (ix) the use of financial incentives for contractors 
            and health care providers to receive an equitable share in 
            cost savings resulting from improvements in health outcomes 
            and the experience of care for covered beneficiaries.
            (C) Whether the Department has considered, in developing 
        requirements for managed care support contracts under the 
        TRICARE program, the following:
                (i) The unique characteristics of providing health care 
            services in Alaska, Hawaii, and the territories and 
            possessions of the United States, and in rural, remote, or 
            isolated locations in the contiguous 48 States;
                (ii) The various challenges inherent in developing 
            robust networks of health care providers in those 
            locations.
                (iii) A provider reimbursement rate structure in those 
            locations that ensures--

                    (I) timely access of covered beneficiaries to 
                health care services;
                    (II) the delivery of high-quality primary and 
                specialty care;
                    (III) improvement in health outcomes for covered 
                beneficiaries; and
                    (IV) an enhanced experience of care for covered 
                beneficiaries.

    (f) Definitions.--In this section:
        (1) The terms ``covered beneficiary'' and ``TRICARE program'' 
    have the meaning given those terms in section 1072 of title 10, 
    United States Code.
        (2) The term ``high-performing networks of health care 
    providers'' means networks of health care providers that, in 
    addition to such other requirements as the Secretary of Defense may 
    specify for purposes of this section, do the following:
            (A) Deliver high quality health care as measured by leading 
        health quality measurement organizations such as the National 
        Committee for Quality Assurance and the Agency for Healthcare 
        Research and Quality.
            (B) Achieve greater efficiency in the delivery of health 
        care by identifying and implementing within such network 
        improvement opportunities that guide patients through the 
        entire continuum of care, thereby reducing variations in the 
        delivery of health care and preventing medical errors and 
        duplication of medical services.
            (C) Improve population-based health outcomes by using a 
        team approach to deliver case management, prevention, and 
        wellness services to high-need and high-cost patients.
            (D) Focus on preventive care that emphasizes--
                (i) early detection and timely treatment of disease;
                (ii) periodic health screenings; and
                (iii) education regarding healthy lifestyle behaviors.
            (E) Coordinate and integrate health care across the 
        continuum of care, connecting all aspects of the health care 
        received by the patient, including the patient's health care 
        team.
            (F) Facilitate access to health care providers, including--
                (i) after-hours care;
                (ii) urgent care; and
                (iii) through telehealth appointments, when 
            appropriate.
            (G) Encourage patients to participate in making health care 
        decisions.
            (H) Use evidence-based treatment protocols that improve the 
        consistency of health care and eliminate ineffective, wasteful 
        health care practices.
    SEC. 706. ESTABLISHMENT OF HIGH PERFORMANCE MILITARY-CIVILIAN 
      INTEGRATED HEALTH DELIVERY SYSTEMS.
    (a) In General.--Not later than January 1, 2018, the Secretary of 
Defense shall establish military-civilian integrated health delivery 
systems through partnerships with other health systems, including local 
or regional health systems in the private sector--
        (1) to improve access to health care for covered beneficiaries;
        (2) to enhance the experience of covered beneficiaries in 
    receiving health care;
        (3) to improve health outcomes for covered beneficiaries;
        (4) to share resources between the Department of Defense and 
    the private sector, including such staff, equipment, and training 
    assets as may be required to carry out such integrated health 
    delivery systems;
        (5) to maintain services within military treatment facilities 
    that are essential for the maintenance of operational medical force 
    readiness skills of health care providers of the Department; and
        (6) to provide members of the Armed Forces with additional 
    training opportunities to maintain such readiness skills.
    (b) Elements of Systems.--Each military-civilian integrated health 
delivery system established under subsection (a) shall--
        (1) deliver high quality health care as measured by leading 
    national health quality measurement organizations;
        (2) achieve greater efficiency in the delivery of health care 
    by identifying and implementing within each such system improvement 
    opportunities that guide patients through the entire continuum of 
    care, thereby reducing variations in the delivery of health care 
    and preventing medical errors and duplication of medical services;
        (3) improve population-based health outcomes by using a team 
    approach to deliver case management, prevention, and wellness 
    services to high-need and high-cost patients;
        (4) focus on preventive care that emphasizes--
            (A) early detection and timely treatment of disease;
            (B) periodic health screenings; and
            (C) education regarding healthy lifestyle behaviors;
        (5) coordinate and integrate health care across the continuum 
    of care, connecting all aspects of the health care received by the 
    patient, including the patient's health care team;
        (6) facilitate access to health care providers, including--
            (A) after-hours care;
            (B) urgent care; and
            (C) through telehealth appointments, when appropriate;
        (7) encourage patients to participate in making health care 
    decisions;
        (8) use evidence-based treatment protocols that improve the 
    consistency of health care and eliminate ineffective, wasteful 
    health care practices; and
        (9) improve coordination of behavioral health services with 
    primary health care.
    (c) Agreements.--
        (1) In general.--In establishing military-civilian integrated 
    health delivery systems through partnerships under subsection (a), 
    the Secretary shall seek to enter into memoranda of understanding 
    or contracts between military treatment facilities and health 
    maintenance organizations, health care centers of excellence, 
    public or private academic medical institutions, regional health 
    organizations, integrated health systems, accountable care 
    organizations, and such other health systems as the Secretary 
    considers appropriate.
        (2) Private sector care.--Memoranda of understanding and 
    contracts entered into under paragraph (1) shall ensure that 
    covered beneficiaries are eligible to enroll in and receive medical 
    services under the private sector components of military-civilian 
    integrated health delivery systems established under subsection 
    (a).
        (3) Value-based reimbursement methodologies.--The Secretary 
    shall incorporate value-based reimbursement methodologies, such as 
    capitated payments, bundled payments, or pay for performance, into 
    memoranda of understanding and contracts entered into under 
    paragraph (1) to reimburse entities for medical services provided 
    to covered beneficiaries under such memoranda of understanding and 
    contracts.
        (4) Quality of care.--Each memorandum of understanding or 
    contract entered into under paragraph (1) shall ensure that the 
    quality of services received by covered beneficiaries through a 
    military-civilian integrated health delivery system under such 
    memorandum of understanding or contract is at least comparable to 
    the quality of services received by covered beneficiaries from a 
    military treatment facility.
    (d) Covered Beneficiary Defined.--In this section, the term 
``covered beneficiary'' has the meaning given that term in section 1072 
of title 10, United States Code.
    SEC. 707. JOINT TRAUMA SYSTEM.
    (a) Plan.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    Committees on Armed Services of the House of Representatives and 
    the Senate an implementation plan to establish a Joint Trauma 
    System within the Defense Health Agency that promotes improved 
    trauma care to members of the Armed Forces and other individuals 
    who are eligible to be treated for trauma at a military medical 
    treatment facility.
        (2) Implementation.--The Secretary shall implement the plan 
    under paragraph (1) after a 90-day period has elapsed following the 
    date on which the Comptroller General of the United States is 
    required to submit to the Committees on Armed Services of the House 
    of Representatives and the Senate the review under subsection (c). 
    In implementing such plan, the Secretary shall take into account 
    any recommendation made by the Comptroller General under such 
    review.
    (b) Elements.--The Joint Trauma System described in subsection 
(a)(1) shall include the following elements:
        (1) Serve as the reference body for all trauma care provided 
    across the military health system.
        (2) Establish standards of care for trauma services provided at 
    military medical treatment facilities.
        (3) Coordinate the translation of research from the centers of 
    excellence of the Department of Defense into standards of clinical 
    trauma care.
        (4) Coordinate the incorporation of lessons learned from the 
    trauma education and training partnerships pursuant to section 708 
    into clinical practice.
    (c) Review.--Not later than 180 days after the date on which the 
Secretary submits to the Committees on Armed Services of the House of 
Representatives and the Senate the implementation plan under subsection 
(a)(1), the Comptroller General of the United States shall submit to 
such committees a review of such plan to determine if each element 
under subsection (b) is included in such plan.
    (d) Review of Military Trauma System.--In establishing a Joint 
Trauma System, the Secretary of Defense may seek to enter into an 
agreement with a non-governmental entity with subject matter experts 
to--
        (1) conduct a system-wide review of the military trauma system, 
    including a comprehensive review of combat casualty care and 
    wartime trauma systems during the period beginning on January 1, 
    2001, and ending on the date of the review, including an assessment 
    of lessons learned to improve combat casualty care in future 
    conflicts; and
        (2) make publicly available a report containing such review and 
    recommendations to establish a comprehensive trauma system for the 
    Armed Forces.
    SEC. 708. JOINT TRAUMA EDUCATION AND TRAINING DIRECTORATE.
    (a) Establishment.--The Secretary of Defense shall establish a 
Joint Trauma Education and Training Directorate (in this section 
referred to as the ``Directorate'') to ensure that the traumatologists 
of the Armed Forces maintain readiness and are able to be rapidly 
deployed for future armed conflicts. The Secretary shall carry out this 
section in collaboration with the Secretaries of the military 
departments.
    (b) Duties.--The duties of the Directorate are as follows:
        (1) To enter into and coordinate the partnerships under 
    subsection (c).
        (2) To establish the goals of such partnerships necessary for 
    trauma teams led by traumatologists to maintain professional 
    competency in trauma care.
        (3) To establish metrics for measuring the performance of such 
    partnerships in achieving such goals.
        (4) To develop methods of data collection and analysis for 
    carrying out paragraph (3).
        (5) To communicate and coordinate lessons learned from such 
    partnerships with the Joint Trauma System established under section 
    707.
        (6) To develop standardized combat casualty care instruction 
    for all members of the Armed Forces, including the use of 
    standardized trauma training platforms.
        (7) To develop a comprehensive trauma care registry to compile 
    relevant data from point of injury through rehabilitation of 
    members of the Armed Forces.
        (8) To develop quality of care outcome measures for combat 
    casualty care.
        (9) To direct the conduct of research on the leading causes of 
    morbidity and mortality of members of the Armed Forces in combat.
    (c) Partnerships.--
        (1) In general.--The Secretary may enter into partnerships with 
    civilian academic medical centers and large metropolitan teaching 
    hospitals that have level I civilian trauma centers to provide 
    integrated combat trauma teams, including forward surgical teams, 
    with maximum exposure to a high volume of patients with critical 
    injuries.
        (2) Trauma teams.--Under the partnerships entered into with 
    civilian academic medical centers and large metropolitan teaching 
    hospitals under paragraph (1), trauma teams of the Armed Forces led 
    by traumatologists of the Armed Forces shall embed within the 
    trauma centers of the medical centers and hospitals on an enduring 
    basis.
        (3) Selection.--The Secretary shall select civilian academic 
    medical centers and large metropolitan teaching hospitals to enter 
    into partnerships under paragraph (1) based on patient volume, 
    acuity, and other factors the Secretary determines necessary to 
    ensure that the traumatologists of the Armed Forces and the 
    associated clinical support teams have adequate and continuous 
    exposure to critically injured patients.
        (4) Consideration.--In entering into partnerships under 
    paragraph (1), the Secretary may consider the experiences and 
    lessons learned by the military departments that have entered into 
    memoranda of understanding with civilian medical centers for trauma 
    care.
    (d) Personnel Management Plan.--
        (1) Plan.--The Secretary shall establish a personnel management 
    plan for the following wartime medical specialties:
            (A) Emergency medical services and prehospital care.
            (B) Trauma surgery.
            (C) Critical care.
            (D) Anesthesiology.
            (E) Emergency medicine.
            (F) Other wartime medical specialties the Secretary 
        determines appropriate for purposes of the plan.
        (2) Elements.--The elements of the plan established under 
    paragraph (1) shall include, at a minimum, the following:
            (A) An accession plan for the number of qualified medical 
        personnel to maintain wartime medical specialties on an annual 
        basis in order to maintain the required number of trauma teams 
        as determined by the Secretary.
            (B) The number of positions required in each such medical 
        specialty.
            (C) Crucial organizational and operational assignments for 
        personnel in each such medical specialty.
            (D) Career pathways for personnel in each such medical 
        specialty.
        (3) Implementation.--The Secretaries of the military 
    departments shall carry out the plan established under paragraph 
    (1).
    (e) Implementation Plan.--Not later than July 1, 2017, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the House of Representatives and the Senate an implementation plan 
for establishing the Joint Trauma Education and Training Directorate 
under subsection (a), entering into partnerships under subsection (c), 
and establishing the plan under subsection (d).
    (f) Level I Civilian Trauma Center Defined.--In this section, the 
term ``level I civilian trauma center'' means a comprehensive regional 
resource that is a tertiary care facility central to the trauma system 
and is capable of providing total care for every aspect of injury from 
prevention through rehabilitation.
    SEC. 709. STANDARDIZED SYSTEM FOR SCHEDULING MEDICAL APPOINTMENTS 
      AT MILITARY TREATMENT FACILITIES.
    (a) Standardized System.--
        (1) In general.--Not later than January 1, 2018, the Secretary 
    of Defense shall implement a system for scheduling medical 
    appointments at military treatment facilities that is standardized 
    throughout the military health system to enable timely access to 
    care for covered beneficiaries.
        (2) Lack of variance.--The system implemented under paragraph 
    (1) shall ensure that the appointment scheduling processes and 
    procedures used within the military health system do not vary among 
    military treatment facilities.
    (b) Sole System.--Upon implementation of the system under 
subsection (a), no military treatment facility may use an appointment 
scheduling process other than such system.
    (c) Scheduling of Appointments.--
        (1) In general.--Under the system implemented under subsection 
    (a), each military treatment facility shall use a centralized 
    appointment scheduling capability for covered beneficiaries that 
    includes the ability to schedule appointments manually via 
    telephone as described in paragraph (2) or automatically via a 
    device that is connected to the Internet through an online 
    scheduling system described in paragraph (3).
        (2) Telephone appointment process.--
            (A) In general.--In the case of a covered beneficiary who 
        contacts a military treatment facility via telephone to 
        schedule an appointment under the system implemented under 
        subsection (a), the Secretary shall implement standard 
        processes to ensure that the needs of the covered beneficiary 
        are met during the first such telephone call.
            (B) Matters included.--The standard processes implemented 
        under subparagraph (A) shall include the following:
                (i) The ability of a covered beneficiary, during the 
            telephone call to schedule an appointment, to also schedule 
            wellness visits or follow-up appointments during the 180-
            day period beginning on the date of the request for the 
            visit or appointment.
                (ii) The ability of a covered beneficiary to indicate 
            the process through which the covered beneficiary prefers 
            to be reminded of future appointments, which may include 
            reminder telephone calls, emails, or cellular text messages 
            to the covered beneficiary at specified intervals prior to 
            appointments.
        (3) Online system.--
            (A) In general.--The Secretary shall implement an online 
        scheduling system that is available 24 hours per day, seven 
        days per week, for purposes of scheduling appointments under 
        the system implemented under subsection (a).
            (B) Capabilities of online system.--The online scheduling 
        system implemented under subparagraph (A) shall have the 
        following capabilities:
                (i) An ability to send automated email and text message 
            reminders, including repeat reminders, to patients 
            regarding upcoming appointments.
                (ii) An ability to store appointment records to ensure 
            rapid access by medical personnel to appointment data.
    (d) Standards for Productivity of Health Care Providers.--
        (1) In general.--The Secretary shall implement standards for 
    the productivity of health care providers at military treatment 
    facilities.
        (2) Matters considered.--In developing standards under 
    paragraph (1), the Secretary shall consider--
            (A) civilian benchmarks for measuring the productivity of 
        health care providers;
            (B) the optimal number of medical appointments for each 
        health care provider that would be required, as determined by 
        the Secretary, to maintain access of covered beneficiaries to 
        health care from the Department; and
            (C) the readiness requirements of the Armed Forces.
    (e) Plan.--
        (1) In general.--Not later than January 1, 2017, the Secretary 
    shall submit to the Committees on Armed Services of the Senate and 
    the House of Representatives a comprehensive plan to implement the 
    system required under subsection (a).
        (2) Elements.--The plan required under paragraph (1) shall 
    include the following:
            (A) A description of the manual appointment process to be 
        used at military treatment facilities under the system required 
        under subsection (a).
            (B) A description of the automated appointment process to 
        be used at military treatment facilities under such system.
            (C) A timeline for the full implementation of such system 
        throughout the military health system.
    (f) Briefing.--Not later than February 1, 2018, the Secretary shall 
brief the Committees on Armed Services of the Senate and the House of 
Representatives on the implementation of the system required under 
subsection (a) and the standards for the productivity of health care 
providers required under subsection (d).
    (g) Report on Missed Appointments.--
        (1) In general.--Not later than March 1 each year, the 
    Secretary of Defense shall submit to the Committees on Armed 
    Services of the Senate and the House of Representatives a report on 
    the total number of medical appointments at military treatment 
    facilities for which a covered beneficiary failed to appear without 
    prior notification during the one-year period preceding the 
    submittal of the report.
        (2) Elements.--Each report under paragraph (1) shall include 
    for each military treatment facility the following:
            (A) An identification of the top five reasons for a covered 
        beneficiary missing an appointment.
            (B) A comparison of the number of missed appointments for 
        specialty care versus primary care.
            (C) An estimate of the cost to the Department of Defense of 
        missed appointments.
            (D) An assessment of strategies to reduce the number of 
        missed appointments.
    (h) Covered Beneficiary Defined.--In this section, the term 
``covered beneficiary'' has the meaning given that term in section 1072 
of title 10, United States Code.

                 Subtitle B--Other Health Care Benefits

    SEC. 711. EXTENDED TRICARE PROGRAM COVERAGE FOR CERTAIN MEMBERS OF 
      THE NATIONAL GUARD AND DEPENDENTS DURING CERTAIN DISASTER 
      RESPONSE DUTY.
    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1076e the following new section:
``Sec. 1076f. TRICARE program: extension of coverage for certain 
     members of the National Guard and dependents during certain 
     disaster response duty
    ``(a) Extended Coverage.--During a period in which a member of the 
National Guard is performing disaster response duty, the member may be 
treated as being on active duty for a period of more than 30 days for 
purposes of the eligibility of the member and dependents of the member 
for health care benefits under the TRICARE program if such period 
immediately follows a period in which the member served on full-time 
National Guard duty under section 502(f) of title 32, including 
pursuant to chapter 9 of such title, unless the Governor of the State 
(or, with respect to the District of Columbia, the mayor of the 
District of Columbia) determines that such extended eligibility is not 
in the best interest of the member or the State.
    ``(b) Contribution by State.--(1) The Secretary shall charge a 
State for the costs of providing coverage under the TRICARE program to 
members of the National Guard of the State and the dependents of the 
members pursuant to subsection (a). Such charges shall be paid from the 
funds of the State or from any other non-Federal funds.
    ``(2) Any amounts received by the Secretary under paragraph (1) 
shall be credited to the appropriation available for the Defense Health 
Program Account under section 1100 of this title, shall be merged with 
sums in such Account that are available for the fiscal year in which 
collected, and shall be available under subsection (b) of such section, 
including to carry out subsection (a) of this section.
    ``(c) Definitions.--In this section:
        ``(1) The term `disaster response duty' means duty performed by 
    a member of the National Guard in State status pursuant to an 
    emergency declaration by the Governor of the State (or, with 
    respect to the District of Columbia, the mayor of the District of 
    Columbia) in response to a disaster or in preparation for an 
    imminent disaster.
        ``(2) The term `State' means each of the several States, the 
    District of Columbia, the Commonwealth of Puerto Rico, and any 
    territory or possession of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1076e the following new item:

``1076f. TRICARE program: extension of coverage for certain members of 
          the National Guard and dependents during certain disaster 
          response duty.''.
    SEC. 712. CONTINUITY OF HEALTH CARE COVERAGE FOR RESERVE 
      COMPONENTS.
    (a) Study.--
        (1) In general.--The Secretary of Defense shall conduct a study 
    of options for providing health care coverage that improves the 
    continuity of health care provided to current and former members of 
    the Selected Reserve of the Ready Reserve who are not--
            (A) serving on active duty;
            (B) eligible for the Transitional Assistance Management 
        Program under section 1145 of title 10, United States Code; or
            (C) eligible for the Federal Employees Health Benefit 
        Program.
        (2) Elements.--The study under paragraph (1) shall address the 
    following:
            (A) Whether to allow current and former members of the 
        Selected Reserve to participate in the Federal Employees Health 
        Benefit Program.
            (B) Whether to pay a stipend to current and former members 
        to continue coverage in a health plan obtained by the member.
            (C) Whether to allow current and former members to 
        participate in the TRICARE program under section 1076d of title 
        10, United States Code.
            (D) Whether to amend section 1076f of title 10, United 
        States Code, as added by section 711, to require the extension 
        of TRICARE program coverage for members of the National Guard 
        assigned to Homeland Response Force Units mobilized for a State 
        emergency pursuant to chapter 9 of title 32, United States 
        Code.
             (E) The findings and recommendations under section 748.
            (F) Any other options for providing health care coverage to 
        current and former members of the Selected Reserve the 
        Secretary considers appropriate.
        (3) Consultation.--In carrying out the study under paragraph 
    (1), the Secretary shall consult with, and obtain the opinions of, 
    current and former members of the Selected Reserve, including the 
    leadership of the Selected Reserve.
        (4) Submission.--
            (A) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary shall submit to the 
        congressional defense committees a report on the study under 
        paragraph (1).
            (B) Matters included.--The report under subparagraph (A) 
        shall include the following:
                (i) A description of the health care coverage options 
            addressed by the Secretary under paragraph (2).
                (ii) Identification of such health care coverage option 
            that the Secretary recommends as the best option.
                (iii) The justifications for such recommended best 
            option.
                (iv) The number and proportion of the current and 
            former members of the Selected Reserve projected to 
            participate in such recommended best option.
                (v) A determination of the appropriate cost sharing for 
            such recommended best option with respect to the percentage 
            contribution as a monthly premium for current members of 
            the Selected Reserve.
                (vi) An estimate of the cost of implementing such 
            recommended best option.
                (vii) Any legislative language required to implement 
            such recommended best option.
    (b) Pilot Program.--
        (1) Authorization.--The Secretary of Defense and the Director 
    may jointly carry out a pilot program, at the election of the 
    Secretary, under which the Director provides commercial health 
    insurance coverage to eligible reserve component members who enroll 
    in a health benefits plan under paragraph (4) as an individual, for 
    self plus one coverage, or for self and family coverage.
        (2) Elements.--The pilot program shall--
            (A) provide for enrollment by eligible reserve component 
        members, at the election of the member, in a health benefits 
        plan under paragraph (4) during an open enrollment period 
        established by the Director for purposes of this subsection;
            (B) include a variety of national and regional health 
        benefits plans that--
                (i) meet the requirements of this subsection;
                (ii) are broadly representative of the health benefits 
            plans available in the commercial market; and
                (iii) do not contain unnecessary restrictions, as 
            determined by the Director; and
            (C) offer a sufficient number of health benefits plans in 
        order to provide eligible reserve component beneficiaries with 
        an ample choice of health benefits plans, as determined by the 
        Director.
        (3) Duration.--If the Secretary elects to carry out the pilot 
    program, the Secretary and the Director shall carry out the pilot 
    program for not less than five years.
        (4) Health benefits plans.--
            (A) In general.--In providing health insurance coverage 
        under the pilot program, the Director shall contract with 
        qualified carriers for a variety of health benefits plans.
            (B) Description of plans.--Health benefits plans contracted 
        for under this subsection--
                (i) may vary by type of plan design, covered benefits, 
            geography, and price;
                (ii) shall include maximum limitations on out-of-pocket 
            expenses paid by an eligible reserve component beneficiary 
            for the health care provided; and
                (iii) may not exclude an eligible reserve component 
            member who chooses to enroll.
            (C) Quality of plans.--The Director shall ensure that each 
        health benefits plan offered under this subsection offers a 
        high degree of quality, as determined by criteria that 
        include--
                (i) access to an ample number of medical providers, as 
            determined by the Director;
                (ii) adherence to industry-accepted quality 
            measurements, as determined by the Director;
                (iii) access to benefits described in paragraph (5), 
            including ease of referral for health care services; and
                (iv) inclusion in the services covered by the plan of 
            advancements in medical treatments and technology as soon 
            as practicable in accordance with generally accepted 
            standards of medicine.
        (5) Benefits.--A health benefits plan offered by the Director 
    under this subsection shall include, at a minimum, the following 
    benefits:
            (A) The health care benefits provided under chapter 55 of 
        title 10, United States Code, excluding pharmaceutical, dental, 
        and extended health care option benefits.
            (B) Such other benefits as the Director determines 
        appropriate.
        (6) Care at facilities of uniformed services.--
            (A) In general.--If an eligible reserve component 
        beneficiary receives benefits described in paragraph (5) at a 
        facility of the uniformed services, the health benefits plan 
        under which the beneficiary is covered shall be treated as a 
        third-party payer under section 1095 of title 10, United States 
        Code, and shall pay charges for such benefits as determined by 
        the Secretary.
            (B) Military medical treatment facilities.--The Secretary, 
        in consultation with the Director--
                (i) may contract with qualified carriers with which the 
            Director has contracted under paragraph (4) to provide 
            health insurance coverage for health care services provided 
            at military treatment facilities under this subsection; and
                (ii) may receive payments under section 1095 of title 
            10, United States Code, from qualified carriers for health 
            care services provided at military medical treatment 
            facilities under this subsection.
        (7) Special rule relating to active duty period.--
            (A) In general.--An eligible reserve component member may 
        not receive benefits under a health benefits plan under this 
        subsection during any period in which the member is serving on 
        active duty for more than 30 days.
            (B) Treatment of dependents.--Subparagraph (A) does not 
        affect the coverage under a health benefits plan of any 
        dependent of an eligible reserve component member.
        (8) Eligibility for federal employees health benefits 
    program.--An individual is not eligible to enroll in or be covered 
    under a health benefits plan under this subsection if the 
    individual is eligible to enroll in a health benefits plan under 
    the Federal Employees Health Benefits Program.
        (9) Cost sharing.--
            (A) Responsibility for payment.--
                (i) In general.--Except as provided in clause (ii), an 
            eligible reserve component member shall pay an annual 
            premium amount calculated under subparagraph (B) for 
            coverage under a health benefits plan under this subsection 
            and additional amounts described in subparagraph (C) for 
            health care services in connection with such coverage.
                (ii) Active duty period.--

                    (I) In general.--During any period in which an 
                eligible reserve component member is serving on active 
                duty for more than 30 days, the eligible reserve 
                component member is not responsible for paying any 
                premium amount under subparagraph (B) or additional 
                amounts under subparagraph (C).
                    (II) Coverage of dependents.--With respect to a 
                dependent of an eligible reserve component member that 
                is covered under a health benefits plan under this 
                subsection, during any period described in subclause 
                (I) with respect to the member, the Secretary shall, on 
                behalf of the dependent, pay 100 percent of the total 
                annual amount of a premium for coverage of the 
                dependent under the plan and such cost-sharing amounts 
                as may be applicable under the plan.

            (B) Premium amount.--
                (i) In general.--The annual premium calculated under 
            this subparagraph is an amount equal to 28 percent of the 
            total annual amount of a premium under the health benefits 
            plan selected.
                (ii) Types of coverage.--The premium amounts calculated 
            under this subparagraph shall include separate calculations 
            for--

                    (I) coverage as an individual;
                    (II) self plus one coverage; and
                    (III) self and family coverage.

            (C) Additional amounts.--The additional amounts described 
        in this subparagraph with respect to an eligible reserve 
        component member are such cost-sharing amounts as may be 
        applicable under the health benefits plan under which the 
        member is covered.
        (10) Contracting.--
            (A) In general.--In contracting for health benefits plans 
        under paragraph (4), the Director may contract with qualified 
        carriers in a manner similar to the manner in which the 
        Director contracts with carriers under section 8902 of title 5, 
        United States Code, including that--
                (i) a contract under this subsection shall be for a 
            uniform term of not less than one year, but may be made 
            automatically renewable from term to term in the absence of 
            notice of termination by either party;
                (ii) a contract under this subsection shall contain a 
            detailed statement of benefits offered and shall include 
            such maximums, limitations, exclusions, and other 
            definitions of benefits determined by the Director in 
            accordance with paragraph (5);
                (iii) a contract under this subsection shall ensure 
            that an eligible reserve component member who is eligible 
            to enroll in a health benefits plan pursuant to such 
            contract is able to enroll in such plan; and
                (iv) the terms of a contract under this subsection 
            relating to the nature, provision, or extent of coverage or 
            benefits (including payments with respect to benefits) 
            shall supersede and preempt any conflicting State or local 
            law.
            (B) Evaluation of financial solvency.--The Director shall 
        perform a thorough evaluation of the financial solvency of an 
        insurance carrier before entering into a contract with the 
        insurance carrier under subparagraph (A).
        (11) Recommendations and data.--
            (A) In general.--The Secretary of Defense, in consultation 
        with the Secretary of Homeland Security, shall provide 
        recommendations and data to the Director with respect to--
                (i) matters involving military medical treatment 
            facilities;
                (ii) matters unique to eligible reserve component 
            members and dependents of such members; and
                (iii) such other strategic guidance necessary for the 
            Director to administer this subsection as the Secretary of 
            Defense, in consultation with the Secretary of Homeland 
            Security, considers appropriate.
            (B) Limitation on implementation.--The Director shall not 
        implement any recommendation provided by the Secretary of 
        Defense under subparagraph (A) if the Director determines that 
        the implementation of the recommendation would result in 
        eligible reserve components beneficiaries receiving less 
        generous health benefits under this subsection than the health 
        benefits commonly available to individuals under the Federal 
        Employees Health Benefits Program during the same period.
        (12) Transmission of information.--On an annual basis during 
    each year in which the pilot program is carried out, the Director 
    shall provide the Secretary with information on the use of health 
    care benefits under the pilot program, including--
            (A) the number of eligible reserve component beneficiaries 
        participating in the pilot program, listed by the health 
        benefits plan under which the beneficiary is covered;
            (B) the number of health benefits plans offered under the 
        pilot program and a description of each such plan; and
            (C) the costs of the health care provided under the plans.
        (13) Funding.--
            (A) In general.--The Secretary of Defense and the Director 
        shall jointly establish an appropriate mechanism to fund the 
        pilot program.
            (B) Availability of amounts.--Amounts shall be made 
        available to the Director pursuant to the mechanism established 
        under subparagraph (A), without fiscal year limitation--
                (i) for payments to health benefits plans under this 
            subsection; and
                (ii) to pay the costs of administering this subsection.
        (14) Reports.--
            (A) Initial reports.--Not later than one year after the 
        date on which the Secretary establishes the pilot program, and 
        annually thereafter for the following three years, the 
        Secretary shall submit to the Committees on Armed Services of 
        the Senate and the House of Representatives a report on the 
        pilot program.
            (B) Matters included.--The report under subparagraph (A) 
        shall include, with respect to the year covered by the report, 
        the following:
                (i) The number of eligible reserve component 
            beneficiaries participating in the pilot program, listed by 
            the health benefits plan under which the beneficiary is 
            covered.
                (ii) The number of health benefits plans offered under 
            the pilot program.
                (iii) The cost of the pilot program to the Department 
            of Defense.
                (iv) The estimated cost savings, if any, to the 
            Department of Defense.
                (v) The average cost to the eligible reserve component 
            beneficiary.
                (vi) The effect of the pilot program on the medical 
            readiness of the members of the reserve components.
                (vii) The effect of the pilot program on access to 
            health care for members of the reserve components.
            (C) Final report.--Not later than 180 days before the date 
        on which the pilot program will terminate pursuant to paragraph 
        (3), the Secretary shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a 
        report on the pilot program that includes--
                (i) the matters specified under subparagraph (B); and
                (ii) the recommendation of the Secretary regarding 
            whether to make the pilot program permanent or to terminate 
            the pilot program.
    (c) Definitions.--In this section:
        (1) The term ``Director'' means the Director of the Office of 
    Personnel Management.
        (2) The term ``eligible reserve component beneficiary'' means 
    an eligible reserve component member enrolled in, or a dependent of 
    such a member described in subparagraph (A), (D), or (I) of section 
    1072(2) of title 10, United States Code, covered under, a health 
    benefits plan under subsection (b).
        (3) The term ``eligible reserve component member'' means a 
    member of the Selected Reserve of the Ready Reserve of an Armed 
    Force.
        (4) The term ``extended health care option'' means the program 
    of extended benefits under subsections (d) and (e) of section 1079 
    of title 10, United States Code.
        (5) The term ``Federal Employees Health Benefits Program'' 
    means the health insurance program under chapter 89 of title 5, 
    United States Code.
        (6) The term ``qualified carrier'' means an insurance carrier 
    that is licensed to issue group health insurance in any State, the 
    District of Columbia, the Commonwealth of Puerto Rico, the 
    Commonwealth of the Northern Mariana Islands, Guam, and any 
    territory or possession of the United States.
    SEC. 713. PROVISION OF HEARING AIDS TO DEPENDENTS OF RETIRED 
      MEMBERS.
    Section 1077 of title 10, United States Code, is amended--
        (1) in subsection (a)(16), by striking ``A hearing aid'' and 
    inserting ``Except as provided by subsection (g), a hearing aid''; 
    and
        (2) by adding at the end the following new subsection:
    ``(g) In addition to the authority to provide a hearing aid under 
subsection (a)(16), hearing aids may be sold under this section to 
dependents of former members of the uniformed services at cost to the 
United States.''.
    SEC. 714. COVERAGE OF MEDICALLY NECESSARY FOOD AND VITAMINS FOR 
      CERTAIN CONDITIONS UNDER THE TRICARE PROGRAM.
    (a) In General.--Section 1077 of title 10, United States Code, as 
amended by section 713, is further amended--
        (1) in subsection (a)--
            (A) in paragraph (3), by inserting before the period at the 
        end the following: ``, including, in accordance with subsection 
        (g), medically necessary vitamins''; and
            (B) by adding at the end the following new paragraph:
        ``(18) In accordance with subsection (g), medically necessary 
    food and the medical equipment and supplies necessary to administer 
    such food (other than durable medical equipment and supplies).''; 
    and
        (2) by adding at the end the following new subsection:
    ``(h)(1) Vitamins that may be provided under subsection (a)(3) are 
vitamins used for the management of a covered disease or condition 
pursuant to the prescription, order, or recommendation (as applicable) 
of a physician or other health care professional qualified to make such 
prescription, order, or recommendation.
    ``(2) Medically necessary food that may be provided under 
subsection (a)(18)--
        ``(A) is food, including a low protein modified food product or 
    an amino acid preparation product, that is--
            ``(i) furnished pursuant to the prescription, order, or 
        recommendation (as applicable) of a physician or other health 
        care professional qualified to make such prescription, order, 
        or recommendation, for the dietary management of a covered 
        disease or condition;
            ``(ii) a specially formulated and processed product (as 
        opposed to a naturally occurring foodstuff used in its natural 
        state) for the partial or exclusive feeding of an individual by 
        means of oral intake or enteral feeding by tube;
            ``(iii) intended for the dietary management of an 
        individual who, because of therapeutic or chronic medical 
        needs, has limited or impaired capacity to ingest, digest, 
        absorb, or metabolize ordinary foodstuffs or certain nutrients, 
        or who has other special medically determined nutrient 
        requirements, the dietary management of which cannot be 
        achieved by the modification of the normal diet alone;
            ``(iv) intended to be used under medical supervision, which 
        may include in a home setting; and
            ``(v) intended only for an individual receiving active and 
        ongoing medical supervision under which the individual requires 
        medical care on a recurring basis for, among other things, 
        instructions on the use of the food; and
        ``(B) may not include--
            ``(i) food taken as part of an overall diet designed to 
        reduce the risk of a disease or medical condition or as weight-
        loss products, even if the food is recommended by a physician 
        or other health care professional;
            ``(ii) food marketed as gluten-free for the management of 
        celiac disease or non-celiac gluten sensitivity;
            ``(iii) food marketed for the management of diabetes; or
            ``(iv) such other products as the Secretary determines 
        appropriate.
    ``(3) In this subsection, the term `covered disease or condition' 
means--
        ``(A) inborn errors of metabolism;
        ``(B) medical conditions of malabsorption;
        ``(C) pathologies of the alimentary tract or the 
    gastrointestinal tract;
        ``(D) a neurological or physiological condition; and
        ``(E) such other diseases or conditions the Secretary 
    determines appropriate.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to health care provided under chapter 55 of such title on or 
after the date that is one year after the date of the enactment of this 
Act.
    SEC. 715. ELIGIBILITY OF CERTAIN BENEFICIARIES UNDER THE TRICARE 
      PROGRAM FOR PARTICIPATION IN THE FEDERAL EMPLOYEES DENTAL AND 
      VISION INSURANCE PROGRAM.
    (a) In General.--
        (1) Dental benefits.--Section 8951 of title 5, United States 
    Code, is amended--
            (A) in paragraph (3), by striking ``paragraph (1) or (2)'' 
        and inserting ``paragraph (1), (2), or (8)''; and
            (B) by adding at the end the following new paragraph:
        ``(8) The term `covered TRICARE-eligible individual' means an 
    individual entitled to dental care under chapter 55 of title 10, 
    pursuant to section 1076c of such title, who the Secretary of 
    Defense determines should be an eligible individual for purposes of 
    this chapter.''.
        (2) Vision benefits.--Section 8981 of title 5, United States 
    Code, is amended--
            (A) in paragraph (3), by striking ``paragraph (1) or (2)'' 
        and inserting ``paragraph (1), (2), or (8)''; and
            (B) by adding at the end the following new paragraph:
        ``(8)(A) The term `covered TRICARE-eligible individual'--
            ``(i) means an individual entitled to medical care under 
        chapter 55 of title 10, pursuant to section 1076d, 1076e, 
        1079(a), 1086(c), or 1086(d) of such title, who the Secretary 
        of Defense determines in accordance with an agreement entered 
        into under subparagraph (B) should be an eligible individual 
        for purposes of this chapter; and
            ``(ii) does not include an individual covered under section 
        1110b of title 10.
        ``(B) The Secretary of Defense shall enter into an agreement 
    with the Director of the Office relating to classes of individuals 
    described in subparagraph (A)(i) who should be eligible individuals 
    for purposes of this chapter.''.
    (b) Conforming Amendments.--
        (1) Dental benefits.--Section 8958(c) of title 5, United States 
    Code, is amended--
            (A) in paragraph (1), by striking ``or'' at the end;
            (B) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (C) by adding at the end the following new paragraphs:
        ``(3) in the case of a covered TRICARE-eligible individual who 
    receives pay from the Federal Government or an annuity from the 
    Federal Government due to the death of a member of the uniformed 
    services (as defined in section 101 of title 10), and is not a 
    former spouse of a member of the uniformed services, be withheld 
    from--
            ``(A) the pay (including retired pay) of such individual; 
        or
            ``(B) the annuity paid to such individual; or
        ``(4) in the case of a covered TRICARE-eligible individual who 
    is not described in paragraph (3), be billed to such individual 
    directly.''.
        (2) Vision benefits.--Section 8988(c) of title 5, United States 
    Code, is amended--
            (A) in paragraph (1), by striking ``or'' at the end;
            (B) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (C) by adding at the end the following new paragraphs:
        ``(3) in the case of a covered TRICARE-eligible individual who 
    receives pay from the Federal Government or an annuity from the 
    Federal Government due to the death of a member of the uniformed 
    services (as defined in section 101 of title 10), and is not a 
    former spouse of a member of the uniformed services, be withheld 
    from--
            ``(A) the pay (including retired pay) of such individual; 
        or
            ``(B) the annuity paid to such individual; or
        ``(4) in the case of a covered TRICARE-eligible individual who 
    is not described in paragraph (3), be billed to such individual 
    directly.''.
        (3) Plan for dental insurance for certain retirees, surviving 
    spouses, and other dependents.--Subsection (a) of section 1076c of 
    title 10, United States Code, is amended to read as follows:
    ``(a) Requirement for Plan.--(1) The Secretary of Defense shall 
establish a dental insurance plan for retirees of the uniformed 
services, certain unremarried surviving spouses, and dependents in 
accordance with this section.
    ``(2) The Secretary may satisfy the requirement under paragraph (1) 
by entering into an agreement with the Director of the Office of 
Personnel Management to allow persons described in subsection (b) to 
enroll in an insurance plan under chapter 89A of title 5 that provides 
benefits similar to those benefits required to be provided under 
subsection (d).''.
    (c) Applicability.--The amendments made by this section shall apply 
with respect to the first contract year for chapter 89A or 89B of title 
5, United States Code, as applicable, that begins on or after January 
1, 2018.
    SEC. 716. APPLIED BEHAVIOR ANALYSIS.
    (a) Rates of Reimbursement.--
        (1) In general.--In furnishing applied behavior analysis under 
    the TRICARE program to individuals described in paragraph (2) 
    during the period beginning on the date of the enactment of this 
    Act and ending on December 31, 2018, the Secretary of Defense shall 
    ensure that the reimbursement rates for providers of applied 
    behavior analysis are not less than the rates that were in effect 
    on March 31, 2016.
        (2) Individuals described.--Individuals described in this 
    paragraph are individuals who are covered beneficiaries by reason 
    of being a member or former member of the Army, Navy, Air Force, or 
    Marine Corps, including the reserve components thereof, or a 
    dependent of such a member or former member.
    (b) Analysis.--
        (1) In general.--Upon the completion of the Department of 
    Defense Comprehensive Autism Care Demonstration, the Assistant 
    Secretary of Defense for Health Affairs shall conduct an analysis 
    to--
            (A) use data gathered during the demonstration to set 
        future reimbursement rates for providers of applied behavior 
        analysis under the TRICARE program;
            (B) review comparative commercial insurance claims for 
        purposes of setting such future rates, including by--
                (i) conducting an analysis of the comparative total of 
            commercial insurance claims billed for applied behavior 
            analysis; and
                (ii) reviewing any covered beneficiary limitations on 
            access to applied behavior analysis services at various 
            military installations throughout the United States; and
            (C) determine whether the use of applied behavioral 
        analysis under the demonstration has improved outcomes for 
        covered beneficiaries with autism spectrum disorder.
        (2) Submission.--The Assistant Secretary shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives the analysis conducted under paragraph (1).
    (c) Definitions.--In this section, the terms ``covered 
beneficiary'' and ``TRICARE program'' have the meaning given those 
terms in section 1072 of title 10, United States Code.
    SEC. 717. EVALUATION AND TREATMENT OF VETERANS AND CIVILIANS AT 
      MILITARY TREATMENT FACILITIES.
    (a) In General.--The Secretary of Defense shall authorize a veteran 
(in consultation with the Secretary of Veterans Affairs) or civilian to 
be evaluated and treated at a military treatment facility if the 
Secretary of Defense determines that--
        (1) the evaluation and treatment of the individual is necessary 
    to attain the relevant mix and volume of medical casework required 
    to maintain medical readiness skills and competencies of health 
    care providers at the facility;
        (2) the health care providers at the facility have the 
    competencies, skills, and abilities required to treat the 
    individual; and
        (3) the facility has available space, equipment, and materials 
    to treat the individual.
    (b) Priority of Covered Beneficiaries.--The evaluation and 
treatment of covered beneficiaries at military treatment facilities 
shall be prioritized ahead of the evaluation and treatment of veterans 
and civilians at such facilities under subsection (a).
    (c) Reimbursement for Treatment.--
        (1) Civilians.--A military treatment facility that evaluates or 
    treats an individual (other than an individual described in 
    paragraph (2)) under subsection (a) shall bill the individual and 
    accept reimbursement from the individual or a third-party payer (as 
    that term is defined in section 1095(h) of title 10, United States 
    Code) on behalf of such individual for the costs of any health care 
    services provided to the individual under such subsection.
        (2) Veterans.--The Secretary of Defense shall enter into a 
    memorandum of agreement with the Secretary of Veterans Affairs 
    under which the Secretary of Veterans Affairs will pay a military 
    treatment facility using a prospective payment methodology 
    (including interagency transfers of funds or obligational authority 
    and similar transactions) for the costs of any health care services 
    provided at the facility under subsection (a) to individuals 
    eligible for such health care services from the Department of 
    Veterans Affairs.
        (3) Use of amounts.--The Secretary of Defense shall make 
    available to a military treatment facility any amounts collected by 
    such facility under paragraph (1) or (2) for health care services 
    provided to an individual under subsection (a).
    (d) Covered Beneficiary Defined.--In this section, the term 
``covered beneficiary'' has the meaning given that term in section 1072 
of title 10, United States Code.
    SEC. 718. ENHANCEMENT OF USE OF TELEHEALTH SERVICES IN MILITARY 
      HEALTH SYSTEM.
    (a) Incorporation of Telehealth.--
        (1) In general.--Not later than 18 months after the date of the 
    enactment of this Act, the Secretary of Defense shall incorporate, 
    throughout the direct care and purchased care components of the 
    military health system, the use of telehealth services, including 
    mobile health applications--
            (A) to improve access to primary care, urgent care, 
        behavioral health care, and specialty care;
            (B) to perform health assessments;
            (C) to provide diagnoses, interventions, and supervision;
            (D) to monitor individual health outcomes of covered 
        beneficiaries with chronic diseases or conditions;
            (E) to improve communication between health care providers 
        and patients; and
            (F) to reduce health care costs for covered beneficiaries 
        and the Department of Defense.
        (2) Types of telehealth services.--The telehealth services 
    required to be incorporated under paragraph (1) shall include those 
    telehealth services that--
            (A) maximize the use of secure messaging between health 
        care providers and covered beneficiaries to improve the access 
        of covered beneficiaries to health care and reduce the number 
        of visits to medical facilities for health care needs;
            (B) allow covered beneficiaries to schedule appointments; 
        and
            (C) allow health care providers, through video conference, 
        telephone or tablet applications, or home health monitoring 
        devices--
                (i) to assess and evaluate disease signs and symptoms;
                (ii) to diagnose diseases;
                (iii) to supervise treatments; and
                (iv) to monitor health outcomes.
    (b) Coverage of Items or Services.--An item or service furnished to 
a covered beneficiary via a telecommunications system shall be covered 
under the TRICARE program to the same extent as the item or service 
would be covered if furnished in the location of the covered 
beneficiary.
    (c) Reimbursement Rates for Telehealth Services.--The Secretary 
shall develop standardized payment methods to reimburse health care 
providers for telehealth services provided to covered beneficiaries in 
the purchased care component of the TRICARE program, including by using 
reimbursement rates that incentivize the provision of telehealth 
services.
    (d) Reduction or Elimination of Copayments.--The Secretary shall 
reduce or eliminate, as the Secretary considers appropriate, copayments 
or cost shares for covered beneficiaries in connection with the receipt 
of telehealth services under the purchased care component of the 
TRICARE program.
    (e) Reports.--
        (1) Initial report.--
            (A) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report describing the full range of 
        telehealth services to be available in the direct care and 
        purchased care components of the military health system and the 
        copayments and cost shares, if any, associated with those 
        services.
            (B) Reimbursement plan.--The report required under 
        subparagraph (A) shall include a plan to develop standardized 
        payment methods to reimburse health care providers for 
        telehealth services provided to covered beneficiaries in the 
        purchased care component of the TRICARE program, as required 
        under subsection (c).
        (2) Final report.--
            (A) In general.--Not later than three years after the date 
        on which the Secretary begins incorporating, throughout the 
        direct care and purchased care components of the military 
        health system, the use of telehealth services as required under 
        subsection (a), the Secretary shall submit to the Committees on 
        Armed Services of the Senate and the House of Representatives a 
        report describing the impact made by the use of telehealth 
        services, including mobile health applications, to carry out 
        the actions specified in subparagraphs (A) through (F) of 
        subsection (a)(1).
            (B) Elements.--The report required under subparagraph (A) 
        shall include an assessment of the following:
                (i) The satisfaction of covered beneficiaries with 
            telehealth services furnished by the Department of Defense.
                (ii) The satisfaction of health care providers in 
            providing telehealth services furnished by the Department.
                (iii) The effect of telehealth services furnished by 
            the Department on the following:

                    (I) The ability of covered beneficiaries to access 
                health care services in the direct care and purchased 
                care components of the military health system.
                    (II) The frequency of use of telehealth services by 
                covered beneficiaries.
                    (III) The productivity of health care providers 
                providing care furnished by the Department.
                    (IV) The reduction, if any, in the use by covered 
                beneficiaries of health care services in military 
                treatment facilities or medical facilities in the 
                private sector.
                    (V) The number and types of appointments for the 
                receipt of telehealth services furnished by the 
                Department.
                    (VI) The savings, if any, realized by the 
                Department by furnishing telehealth services to covered 
                beneficiaries.

    (f) Regulations.--
        (1) Interim final rule.--Not later than 180 days after the date 
    of the enactment of this Act, the Secretary shall prescribe an 
    interim final rule to implement this section.
        (2) Final rule.--Not later than 180 days after prescribing the 
    interim final rule under paragraph (1) and considering public 
    comments with respect to such interim final rule, the Secretary 
    shall prescribe a final rule to implement this section.
        (3) Objectives.--The regulations prescribed under paragraphs 
    (1) and (2) shall accomplish the objectives set forth in subsection 
    (a) and ensure quality of care, patient safety, and the integrity 
    of the TRICARE program.
    (g) Definitions.--In this section, the terms ``covered 
beneficiary'' and ``TRICARE program'' have the meaning given those 
terms in section 1072 of title 10, United States Code.
    SEC. 719. AUTHORIZATION OF REIMBURSEMENT BY DEPARTMENT OF DEFENSE 
      TO ENTITIES CARRYING OUT STATE VACCINATION PROGRAMS FOR COSTS OF 
      VACCINES PROVIDED TO COVERED BENEFICIARIES.
    (a) Reimbursement.--
        (1) In general.--The Secretary of Defense may reimburse an 
    amount determined under paragraph (2) to an entity carrying out a 
    State vaccination program for the cost of vaccines provided to 
    covered beneficiaries through such program.
        (2) Amount of reimbursement.--
            (A) In general.--Except as provided in subparagraph (B), 
        the amount determined under this paragraph with respect to a 
        State vaccination program shall be the amount assessed by the 
        entity carrying out such program to purchase vaccines provided 
        to covered beneficiaries through such program.
            (B) Limitation.--The amount determined under this paragraph 
        to provide vaccines to covered beneficiaries through a State 
        vaccination program may not exceed the amount that the 
        Department would reimburse an entity under the TRICARE program 
        for providing vaccines to the number of covered beneficiaries 
        who were involved in the applicable State vaccination program.
    (b) Definitions.--In this section:
        (1) Covered beneficiary; tricare program.--The terms ``covered 
    beneficiary'' and ``TRICARE program'' have the meanings given those 
    terms in section 1072 of title 10, United States Code.
        (2) State vaccination program.--The term ``State vaccination 
    program'' means a vaccination program that provides vaccinations to 
    individuals in a State and is carried out by an entity (including 
    an agency of the State) within the State.

                 Subtitle C--Health Care Administration

    SEC. 721. AUTHORITY TO CONVERT MILITARY MEDICAL AND DENTAL 
      POSITIONS TO CIVILIAN MEDICAL AND DENTAL POSITIONS.
    (a) Limited Authority for Conversion.--
        (1) Authority.--Chapter 49 of title 10, United States Code, is 
    amended by inserting after section 976 the following new section:
``Sec. 977. Conversion of military medical and dental positions to 
   civilian medical and dental positions: limitation
    ``(a) Process.--The Secretary of Defense, in collaboration with the 
Secretaries of the military departments, shall establish a process to 
define the military medical and dental personnel requirements necessary 
to meet operational medical force readiness requirements.
    ``(b) Requirements Relating to Conversion.--A military medical or 
dental position within the Department of Defense may be converted to a 
civilian medical or dental position if the Secretary determines that 
the position is not necessary to meet operational medical force 
readiness requirements, as determined pursuant to subsection (a).
    ``(c) Grade or Level Converted.--In carrying out a conversion under 
subsection (b), the Secretary of Defense--
        ``(1) shall convert the applicable military position to a 
    civilian position with a level of compensation commensurate with 
    the skills and experience necessary to carry out the duties of such 
    civilian position; and
        ``(2) may not place any limitation on the grade or level to 
    which the military position is so converted.
    ``(d) Definitions.--In this section:
        ``(1) The term `military medical or dental position' means a 
    position for the performance of health care functions within the 
    armed forces held by a member of the armed forces.
        ``(2) The term `civilian medical or dental position' means a 
    position for the performance of health care functions within the 
    Department of Defense held by an employee of the Department or of a 
    contractor of the Department.
        ``(3) The term `conversion', with respect to a military medical 
    or dental position, means a change of the position to a civilian 
    medical or dental position, effective as of the date of the manning 
    authorization document of the military department making the change 
    (through a change in designation from military to civilian in the 
    document, the elimination of the listing of the position as a 
    military position in the document, or through any other means 
    indicating the change in the document or otherwise).''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 49 of such title is amended by inserting after the item 
    relating to section 976 the following new item:

``977. Conversion of military medical and dental positions to civilian 
          medical and dental positions: limitation.''.

        (3) Effective date of conversion authority.--The Secretary of 
    Defense may not carry out section 977(b) of title 10, United States 
    Code, as added by paragraph (1), until the date that is 180 days 
    after the date on which the Secretary submits the report under 
    subsection (b).
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
that includes the following:
        (1) A description of the process established under section 
    977(a) of title 10, United States Code, as added by subsection (a), 
    to define the military medical and dental personnel requirements 
    necessary to meet operational medical force readiness requirements.
        (2) A complete list, by position, of the military medical and 
    dental personnel requirements necessary to meet operational medical 
    force readiness requirements.
    (c) Conforming Repeal.--Section 721 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat. 
198; 10 U.S.C. 129c note) is repealed.
    SEC. 722. PROSPECTIVE PAYMENT OF FUNDS NECESSARY TO PROVIDE MEDICAL 
      CARE FOR THE COAST GUARD.
    (a) In General.--Chapter 13 of title 14, United States Code, is 
amended by adding at the end the following:
``Sec. 520. Prospective payment of funds necessary to provide medical 
   care
    ``(a) Prospective Payment Required.--In lieu of the reimbursement 
required under section 1085 of title 10, the Secretary of Homeland 
Security shall make a prospective payment to the Secretary of Defense 
of an amount that represents the actuarial valuation of treatment or 
care--
        ``(1) that the Department of Defense shall provide to members 
    of the Coast Guard, former members of the Coast Guard, and 
    dependents of such members and former members (other than former 
    members and dependents of former members who are a Medicare-
    eligible beneficiary or for whom the payment for treatment or care 
    is made from the Medicare-Eligible Retiree Health Care Fund) at 
    facilities under the jurisdiction of the Department of Defense or a 
    military department; and
        ``(2) for which a reimbursement would otherwise be made under 
    section 1085.
    ``(b) Amount.--The amount of the prospective payment under 
subsection (a) shall be--
        ``(1) in the case of treatment or care to be provided to 
    members of the Coast Guard and their dependents, derived from 
    amounts appropriated for the operating expenses of the Coast Guard;
        ``(2) in the case of treatment or care to be provided former 
    members of the Coast Guard and their dependents, derived from 
    amounts appropriated for retired pay;
        ``(3) determined under procedures established by the Secretary 
    of Defense;
        ``(4) paid during the fiscal year in which treatment or care is 
    provided; and
        ``(5) subject to adjustment or reconciliation as the 
    Secretaries determine appropriate during or promptly after such 
    fiscal year in cases in which the prospective payment is determined 
    excessive or insufficient based on the services actually provided.
    ``(c) No Prospective Payment When Service in Navy.--No prospective 
payment shall be made under this section for any period during which 
the Coast Guard operates as a service in the Navy.
    ``(d) Relationship to TRICARE.--This section shall not be construed 
to require a payment for, or the prospective payment of an amount that 
represents the value of, treatment or care provided under any TRICARE 
program.''.
    (b) Clerical Amendment.--The analysis for chapter 13 of title 14, 
United States Code, is amended by adding at the end the following:

``520. Prospective payment of funds necessary to provide medical 
          care.''.

    (c) Repeal.--Section 217 of the Coast Guard Authorization Act of 
2016 (Public Law 114-120), as amended by section 3503, and the item 
relating to that section in the table of contents in section 2 of such 
Act, are repealed.
    SEC. 723. REDUCTION OF ADMINISTRATIVE REQUIREMENTS RELATING TO 
      AUTOMATIC RENEWAL OF ENROLLMENTS IN TRICARE PRIME.
    Section 1097a(b) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking ``(1) An'' and inserting 
    ``An''; and
        (2) by striking paragraph (2).
    SEC. 724. MODIFICATION OF AUTHORITY OF UNIFORMED SERVICES 
      UNIVERSITY OF THE HEALTH SCIENCES TO INCLUDE UNDERGRADUATE AND 
      OTHER MEDICAL EDUCATION AND TRAINING PROGRAMS.
    (a) In General.--Section 2112(a) of title 10, United States Code, 
is amended to read as follows:
    ``(a)(1) There is established a Uniformed Services University of 
the Health Sciences (in this chapter referred to as the `University') 
with authority to grant appropriate certificates, certifications, 
undergraduate degrees, and advanced degrees.
    ``(2) The University shall be so organized as to graduate not fewer 
than 100 medical students annually.
    ``(3) The headquarters of the University shall be at a site or 
sites selected by the Secretary of Defense within 25 miles of the 
District of Columbia.''.
    (b) Administration.--Section 2113 of such title is amended--
        (1) in subsection (d)--
            (A) in the first sentence, by striking ``located in or near 
        the District of Columbia'';
            (B) in the third sentence, by striking ``in or near the 
        District of Columbia''; and
            (C) by striking the fifth sentence; and
        (2) in subsection (e)(3), by inserting after ``programs'' the 
    following: ``, including certificate, certification, and 
    undergraduate degree programs,''.
    (c) Repeal of Expired Provision.--Section 2112a of such title is 
amended--
        (1) by striking subsection (b); and
        (2) in subsection (a), by striking ``(a) Closure Prohibited.--
    ''.
    SEC. 725. ADJUSTMENT OF MEDICAL SERVICES, PERSONNEL AUTHORIZED 
      STRENGTHS, AND INFRASTRUCTURE IN MILITARY HEALTH SYSTEM TO 
      MAINTAIN READINESS AND CORE COMPETENCIES OF HEALTH CARE 
      PROVIDERS.
    (a) In General.--Except as provided by subsection (c), not later 
than one year after the date of the enactment of this Act, the 
Secretary of Defense shall implement measures to maintain the critical 
wartime medical readiness skills and core competencies of health care 
providers within the Armed Forces.
    (b) Measures.--The measures under subsection (a) shall include 
measures under which the Secretary ensures the following:
        (1) Medical services provided through the military health 
    system at military medical treatment facilities--
            (A) maintain the critical wartime medical readiness skills 
        and core competencies of health care providers within the Armed 
        Forces; and
            (B) ensure the medical readiness of the Armed Forces.
        (2) The authorized strengths for military and civilian 
    personnel throughout the military health system--
            (A) maintain the critical wartime medical readiness skills 
        and core competencies of health care providers within the Armed 
        Forces; and
            (B) ensure the medical readiness of the Armed Forces.
        (3) The infrastructure in the military health system, including 
    infrastructure of military medical treatment facilities--
            (A) maintains the critical wartime medical readiness skills 
        and core competencies of health care providers within the Armed 
        Forces; and
            (B) ensures the medical readiness of the Armed Forces.
        (4) Any covered beneficiary who may be affected by the measures 
    implemented under subsection (a) will be able to receive through 
    the purchased care component of the TRICARE program any medical 
    services that will not be available to such covered beneficiary at 
    a military medical treatment facility by reason of such measures.
    (c) Exception.--The Secretary is not required to implement measures 
under subsection (a)(1) with respect to military medical treatment 
facilities located in a foreign country if the Secretary determines 
that providing medical services in addition to the medical services 
described in such subsection is necessary to ensure that covered 
beneficiaries located in that foreign country have access to a similar 
level of care available to covered beneficiaries located in the United 
States.
    (d) Definitions.--In this section:
        (1) The term ``clinical and logistical capabilities'' means 
    those capabilities relating to the provision of health care that 
    are necessary to accomplish operational requirements, including--
            (A) combat casualty care;
            (B) medical response to and treatment of injuries sustained 
        from chemical, biological, radiological, nuclear, or explosive 
        incidents;
            (C) diagnosis and treatment of infectious diseases;
            (D) aerospace medicine;
            (E) undersea medicine;
            (F) diagnosis, treatment, and rehabilitation of specialized 
        medical conditions;
            (G) diagnosis and treatment of diseases and injuries that 
        are not related to battle; and
            (H) humanitarian assistance.
        (2) The terms ``covered beneficiary'' and ``TRICARE program'' 
    have the meanings given those terms in section 1072 of title 10, 
    United States Code.
        (3) The term ``critical wartime medical readiness skills and 
    core competencies'' means those essential medical capabilities, 
    including clinical and logistical capabilities, that are--
            (A) necessary to be maintained by health care providers 
        within the Armed Forces for national security purposes; and
            (B) vital to the provision of effective and timely health 
        care during contingency operations.
    SEC. 726. PROGRAM TO ELIMINATE VARIABILITY IN HEALTH OUTCOMES AND 
      IMPROVE QUALITY OF HEALTH CARE SERVICES DELIVERED IN MILITARY 
      MEDICAL TREATMENT FACILITIES.
    (a) Program.--Beginning not later than January 1, 2018, the 
Secretary of Defense shall implement a program--
        (1) to establish best practices for the delivery of health care 
    services for certain diseases or conditions at military medical 
    treatment facilities, as selected by the Secretary;
        (2) to incorporate such best practices into the daily 
    operations of military medical treatment facilities selected by the 
    Secretary for purposes of the program, with priority in selection 
    given to facilities that provide specialty care; and
        (3) to eliminate variability in health outcomes and to improve 
    the quality of health care services delivered at military medical 
    treatment facilities selected by the Secretary for purposes of the 
    program.
    (b) Use of Clinical Practice Guidelines.--In carrying out the 
program under subsection (a), the Secretary shall develop, implement, 
monitor, and update clinical practice guidelines reflecting the best 
practices established under paragraph (1) of such subsection.
    (c) Development.--In developing the clinical practice guidelines 
under subsection (b), the Secretary shall ensure that such development 
includes a baseline assessment of health care delivery and outcomes at 
military medical treatment facilities to evaluate and determine 
evidence-based best practices, within the direct care component of the 
military health system and the private sector, for treating the 
diseases or conditions selected by the Secretary under subsection 
(a)(1).
    (d) Implementation.--The Secretary shall implement the clinical 
practice guidelines under subsection (b) in military medical treatment 
facilities selected by the Secretary under subsection (a)(2) using 
means determined appropriate by the Secretary, including by 
communicating with the relevant health care providers of the evidence 
upon which the guidelines are based and by providing education and 
training on the most appropriate implementation of the guidelines.
    (e) Monitoring.--The Secretary shall monitor the implementation of 
the clinical practice guidelines under subsection (b) using appropriate 
means, including by monitoring the results in clinical outcomes based 
on specific metrics included as part of the guidelines.
    (f) Updating.--The Secretary shall periodically update the clinical 
practice guidelines under subsection (b) based on the results of 
monitoring conducted under subsection (e) and by continuously assessing 
evidence-based best practices within the direct care component of the 
military health system and the private sector.
    (g) Continuous Cycle.--The Secretary shall establish a continuous 
cycle of carrying out subsections (c) through (f) with respect to the 
clinical practice guidelines established under subsection (a).
    SEC. 727. ACQUISITION STRATEGY FOR HEALTH CARE PROFESSIONAL 
      STAFFING SERVICES.
    (a) Acquisition Strategy.--
        (1) In general.--The Secretary of Defense shall develop and 
    carry out a performance-based, strategic sourcing acquisition 
    strategy with respect to entering into contracts for the services 
    of health care professional staff at military medical treatment 
    facilities located in a State.
        (2) Elements.--The acquisition strategy under paragraph (1) 
    shall include the following:
            (A) Except as provided by subparagraph (B), a requirement 
        that all the military medical treatment facilities that provide 
        direct care use contracts described under paragraph (1).
            (B) A process for a military medical treatment facility to 
        obtain a waiver of the requirement under subparagraph (A) in 
        order to use an acquisition strategy not described in paragraph 
        (1).
            (C) Identification of the responsibilities of the military 
        departments and the elements of the Department of Defense in 
        carrying out such strategy.
            (D) Projection of the demand by covered beneficiaries for 
        health care services, including with respect to primary care 
        and expanded-hours urgent care services.
            (E) Estimation of the workload gaps at military medical 
        treatment facilities for health care services, including with 
        respect to primary care and expanded-hours urgent care 
        services.
            (F) Methods to analyze, using reliable and detailed data 
        covering the entire direct care component of the military 
        health system, the amount of funds expended on contracts for 
        the services of health care professional staff.
            (G) Methods to identify opportunities to consolidate 
        requirements for such services and reduce cost.
            (H) Methods to measure cost savings that are realized by 
        using such contracts instead of purchased care.
            (I) Metrics to determine the effectiveness of such 
        strategy.
            (J) Metrics to evaluate the success of the strategy in 
        achieving its objectives, including metrics to assess the 
        effects of the strategy on the timeliness of beneficiary access 
        to professional health care services in military medical 
        treatment facilities.
            (K) Such other matters as the Secretary considers 
        appropriate.
    (b) Report.--Not later than July 1, 2017, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the status of implementing the 
acquisition strategy under paragraph (1) of subsection (a), including 
how each element under subparagraphs (A) through (K) of paragraph (2) 
of such subsection is being carried out.
    (c) Definitions.--In this section:
        (1) The term ``covered beneficiary'' has the meaning given that 
    term in section 1072 of title 10, United States Code.
        (2) The term ``State'' means the several States and the 
    District of Columbia.
    (d) Conforming Repeal.--Section 725 of the Carl Levin and Howard P. 
``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113-291; 10 U.S.C. 1091 note) is repealed.
    SEC. 728. ADOPTION OF CORE QUALITY PERFORMANCE METRICS.
    (a) Adoption.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall adopt, to the 
    extent appropriate, the core quality performance metrics agreed 
    upon by the Core Quality Measures Collaborative for use by the 
    military health system and in contracts awarded to carry out the 
    TRICARE program.
        (2) Core measures.--The core quality performance metrics 
    described in paragraph (1) shall include the following sets:
            (A) Accountable care organizations, patient centered 
        medical homes, and primary care.
            (B) Cardiology.
            (C) Gastroenterology.
            (D) HIV and hepatitis C.
            (E) Medical oncology.
            (F) Obstetrics and gynecology.
            (G) Orthopedics.
            (H) Such other sets of core quality performance metrics 
        released by the Core Quality Measures Collaborative as the 
        Secretary considers appropriate.
    (b) Publication.--
        (1) Online availability.--Section 1073b of title 10, United 
    States Code, is amended--
            (A) in paragraph (1)--
                (i) by striking ``Not later than'' and all that follows 
            through ``2016, the Secretary'' and inserting ``The 
            Secretary''; and
                (ii) by adding at the end the following new sentence: 
            ``Such data shall include the core quality performance 
            metrics adopted by the Secretary under section 728 of the 
            National Defense Authorization Act for Fiscal Year 2017.''; 
            and
            (B) in the section heading, by inserting ``and publication 
        of certain data'' after ``reports''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 55 of title 10, United States Code, is amended by 
    striking the item relating to section 1073b and inserting the 
    following:

``1073b. Recurring reports and publication of certain data.''.

    (c) Definitions.--In this section:
        (1) The term ``Core Quality Measures Collaborative'' means the 
    collaboration between the Centers for Medicare & Medicaid Services, 
    major health insurance companies, national physician organizations, 
    and other entities to reach consensus on core performance measures 
    reported by health care providers.
        (2) The term ``TRICARE program'' has the meaning given that 
    term in section 1072 of title 10, United States Code.
    SEC. 729. IMPROVEMENT OF HEALTH OUTCOMES AND CONTROL OF COSTS OF 
      HEALTH CARE UNDER TRICARE PROGRAM THROUGH PROGRAMS TO INVOLVE 
      COVERED BENEFICIARIES.
    (a) Medical Intervention Incentive Program.--
        (1) In general.--The Secretary of Defense shall establish a 
    program to incentivize covered beneficiaries to participate in 
    medical intervention programs established by the Secretary, such as 
    comprehensive disease management programs, that may include 
    lowering fees for enrollment in the TRICARE program by a certain 
    percentage or lowering copayment and cost-share amounts for health 
    care services during a particular year for covered beneficiaries 
    with chronic diseases or conditions described in paragraph (2) who 
    met participation milestones, as determined by the Secretary, in 
    the previous year in such medical intervention programs.
        (2) Chronic diseases or conditions described.--Chronic diseases 
    or conditions described in this paragraph may include diabetes, 
    chronic obstructive pulmonary disease, asthma, congestive heart 
    failure, hypertension, history of stroke, coronary artery disease, 
    mood disorders, obesity, and such other diseases or conditions as 
    the Secretary determines appropriate.
    (b) Lifestyle Intervention Incentive Program.--The Secretary shall 
establish a program to incentivize lifestyle interventions for covered 
beneficiaries, such as smoking cessation and weight reduction, that may 
include lowering fees for enrollment in the TRICARE program by a 
certain percentage or lowering copayment and cost share amounts for 
health care services during a particular year for covered beneficiaries 
who met participation milestones, as determined by the Secretary, in 
the previous year with respect to such lifestyle interventions, such as 
quitting smoking or achieving a lower body mass index by a certain 
percentage.
    (c) Healthy Lifestyle Maintenance Incentive Program.--The Secretary 
shall establish a program to incentivize the maintenance of a healthy 
lifestyle among covered beneficiaries, such as exercise and weight 
maintenance, that may include lowering fees for enrollment in the 
TRICARE program by a certain percentage or lowering copayment and cost-
share amounts for health care services during a particular year for 
covered beneficiaries who met participation milestones, as determined 
by the Secretary, in the previous year with respect to the maintenance 
of a healthy lifestyle, such as maintaining smoking cessation or 
maintaining a normal body mass index.
    (d) Report.--
        (1) In general.--Not later than January 1, 2020, the Secretary 
    shall submit to the Committees on Armed Services of the Senate and 
    the House of Representatives a report on the implementation of the 
    programs established under subsections (a), (b), and (c).
        (2) Elements.--The report required by paragraph (1) shall 
    include the following:
            (A) A detailed description of the programs implemented 
        under subsections (a), (b), and (c).
            (B) An assessment of the impact of such programs on--
                (i) improving health outcomes for covered 
            beneficiaries; and
                (ii) lowering per capita health care costs for the 
            Department of Defense.
    (e) Regulations.--Not later than January 1, 2018, the Secretary 
shall prescribe an interim final rule to carry out this section.
    (f) Definitions.--In this section, the terms ``covered 
beneficiary'' and ``TRICARE program'' have the meaning given those 
terms in section 1072 of title 10, United States Code.
    SEC. 730. ACCOUNTABILITY FOR THE PERFORMANCE OF THE MILITARY HEALTH 
      SYSTEM OF CERTAIN LEADERS WITHIN THE SYSTEM.
    (a) In General.--Commencing not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, in consultation 
with the Secretaries of the military departments, shall incorporate 
into the annual performance review of each military and civilian leader 
in the military health system, as determined by the Secretary of 
Defense, measures of accountability for the performance of the military 
health system described in subsection (b).
    (b) Measures of Accountability for Performance.--The measures of 
accountability for the performance of the military health system 
incorporated into the annual performance review of an individual 
pursuant to this section shall include measures to assess performance 
and assure accountability for the following:
        (1) Quality of care.
        (2) Access of beneficiaries to care.
        (3) Improvement in health outcomes for beneficiaries.
        (4) Patient safety.
        (5) Such other matters as the Secretary of Defense, in 
    consultation with the Secretaries of the military departments, 
    considers appropriate.
    (c) Report on Implementation.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives a report on the incorporation of measures of 
    accountability for the performance of the military health system 
    into the annual performance reviews of individuals as required by 
    this section.
        (2) Elements.--The report required by paragraph (1) shall 
    include the following:
            (A) A comprehensive plan for the use of measures of 
        accountability for performance in annual performance reviews 
        pursuant to this section as a means of assessing and assuring 
        accountability for the performance of the military health 
        system.
            (B) The identification of each leadership position in the 
        military health system determined under subsection (a) and a 
        description of the specific measures of accountability for 
        performance to be incorporated into the annual performance 
        reviews of each such position pursuant to this section.
    SEC. 731. ESTABLISHMENT OF ADVISORY COMMITTEES FOR MILITARY 
      TREATMENT FACILITIES.
    (a) In General.--The Secretary of Defense shall establish, under 
such regulations as the Secretary may prescribe, an advisory committee 
for each military treatment facility.
    (b) Status of Certain Members of Advisory Committees.--A member of 
an advisory committee established under subsection (a) who is not a 
member of the Armed Forces on active duty or an employee of the Federal 
Government shall, with the approval of the commanding officer or 
director of the military treatment facility concerned, be treated as a 
volunteer under section 1588 of title 10, United States Code, in 
carrying out the duties of the member under this section.
    (c) Duties.--Each advisory committee established under subsection 
(a) for a military treatment facility shall provide to the commanding 
officer or director of such facility advice on the administration and 
activities of such facility as it relates to the experience of care for 
beneficiaries at such facility.

                 Subtitle D--Reports and Other Matters

    SEC. 741. EXTENSION OF AUTHORITY FOR JOINT DEPARTMENT OF DEFENSE-
      DEPARTMENT OF VETERANS AFFAIRS MEDICAL FACILITY DEMONSTRATION 
      FUND AND REPORT ON IMPLEMENTATION OF INFORMATION TECHNOLOGY 
      CAPABILITIES.
    (a) In General.--Section 1704(e) of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 
2573), as amended by section 722 of the Carl Levin and Howard P. 
``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113-291) and section 723 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92), is further 
amended by striking ``September 30, 2017'' and inserting ``September 
30, 2018''.
    (b) Report on Implementation of Information Technology 
Capabilities.--Not later than March 30, 2017, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on plans to implement all information 
technology capabilities required by the executive agreement entered 
into under section 1701(a) of the National Defense Authorization Act 
for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2567) that remain 
unimplemented as of the date of the report.
    SEC. 742. PILOT PROGRAM ON EXPANSION OF USE OF PHYSICIAN ASSISTANTS 
      TO PROVIDE MENTAL HEALTH CARE TO MEMBERS OF THE ARMED FORCES.
    (a) In General.--The Secretary of Defense may conduct a pilot 
program to assess the feasibility and advisability of expanding the use 
by the Department of Defense of physician assistants specializing in 
psychiatric medicine at medical facilities of the Department of Defense 
in order to meet the increasing demand for mental health care providers 
at such facilities through the use of a psychiatry fellowship program 
for physician assistants.
    (b) Report on Pilot Program.--
        (1) In general.--If the Secretary conducts the pilot program 
    under this section, not later than 90 days after the date on which 
    the Secretary completes the conduct of the pilot program, the 
    Secretary shall submit to the Committees on Armed Services of the 
    Senate and the House of Representatives a report on the pilot 
    program.
        (2) Elements.--The report submitted under paragraph (1) shall 
    include the following:
            (A) A description of the implementation of the pilot 
        program, including a detailed description of the education and 
        training provided under the pilot program.
            (B) An assessment of potential cost savings, if any, to the 
        Department of Defense resulting from the pilot program.
            (C) A description of improvements, if any, to the access of 
        members of the Armed Forces to mental health care resulting 
        from the pilot program.
            (D) A recommendation as to the feasibility and advisability 
        of extending or expanding the pilot program.
    SEC. 743. PILOT PROGRAM FOR PRESCRIPTION DRUG ACQUISITION COST 
      PARITY IN THE TRICARE PHARMACY BENEFITS PROGRAM.
    (a) Authority to Establish Pilot Program.--The Secretary of Defense 
may conduct a pilot program to evaluate whether, in carrying out the 
TRICARE pharmacy benefits program under section 1074g of title 10, 
United States Code, extending additional discounts for prescription 
drugs filled at retail pharmacies will maintain or reduce prescription 
drug costs for the Department of Defense.
    (b) Elements of Pilot Program.--In carrying out the pilot program 
under subsection (a), the Secretary shall require that for prescription 
medications, including non-generic maintenance medications, that are 
dispensed to TRICARE beneficiaries that are not Medicare eligible, 
through any TRICARE participating retail pharmacy, including small 
business pharmacies, manufacturers shall pay rebates such that those 
medications are available to the Department at the lowest rate 
available. In addition to utilizing the authority under section 
1074g(f) of title 10, United States Code, the Secretary shall have the 
authority to enter into a blanket purchase agreement with prescription 
drug manufacturers for supplemental discounts for prescription drugs 
dispensed in the pilot to be paid in the form of manufacturer's 
rebates.
    (c) Consultation.--The Secretary shall develop the pilot program in 
consultation with--
        (1) the Secretaries of the military departments;
        (2) the Chief of the Pharmacy Operations Division of the 
    Defense Health Agency; and
        (3) stakeholders, including TRICARE beneficiaries and retail 
    pharmacies.
    (d) Duration of Pilot Program.--If the Secretary carries out the 
pilot program under subsection (a), the Secretary shall commence such 
pilot program no later than October 1, 2017, and shall terminate such 
program no later than September 30, 2018.
    (e) Reports.--If the Secretary carries out the pilot program under 
subsection (a), the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives 
reports on the pilot program as follows:
        (1) Not later than 90 days after the date of the enactment of 
    this Act, a report containing an implementation plan for the pilot 
    program.
        (2) Not later than 180 days after the date on which the pilot 
    program commences, an interim report on the pilot program.
        (3) Not later than 90 days after the date on which the pilot 
    program terminates, a final report describing the results of the 
    pilot program, including--
            (A) any recommendations of the Secretary to expand such 
        program;
            (B) an analysis of the changes in prescription drug costs 
        for the Department of Defense relating to the pilot program;
            (C) an analysis of the impact on beneficiary access to 
        prescription drugs;
            (D) a survey of beneficiary satisfaction with the pilot 
        program; and
            (E) a summary of any fraud and abuse activities related to 
        the pilot and actions taken in response by the Department.
    SEC. 744. PILOT PROGRAM ON DISPLAY OF WAIT TIMES AT URGENT CARE 
      CLINICS AND PHARMACIES OF MILITARY MEDICAL TREATMENT FACILITIES.
    (a) Pilot Program Authorized.--Beginning not later than one year 
after the date of the enactment of this Act, the Secretary of Defense 
shall carry out a pilot program for the display of wait times in urgent 
care clinics and pharmacies of military medical treatment facilities 
selected under subsection (b).
    (b) Selection of Facilities.--
        (1) Categories.--The Secretary shall select not fewer than four 
    military medical treatment facilities from each of the following 
    categories to participate in the pilot program:
            (A) Medical centers.
            (B) Hospitals.
            (C) Ambulatory care centers.
        (2) OCONUS locations.--Of the military medical treatment 
    facilities selected under each category described in subparagraphs 
    (A) through (C) of paragraph (1), not fewer than one shall be 
    located outside of the continental United States.
        (3) Contractor-operated facilities.--The Secretary may select 
    Government-owned, contractor-operated facilities among those 
    military medical treatment facilities selected under paragraph (1).
    (c) Urgent Care Clinics.--
        (1) Placement.--With respect to each military medical treatment 
    facility participating in the pilot program with an urgent care 
    clinic, the Secretary shall place in a conspicuous location at the 
    urgent care clinic an electronic sign that displays the current 
    average wait time determined under paragraph (2) for a patient to 
    be seen by a qualified medical professional.
        (2) Determination.--In carrying out paragraph (1), every 30 
    minutes, the Secretary shall determine the average wait time to 
    display under such paragraph by calculating, for the four-hour 
    period preceding the calculation, the average length of time 
    beginning at the time of the arrival of a patient at the urgent 
    care clinic and ending at the time at which the patient is first 
    seen by a qualified medical professional.
    (d) Pharmacies.--
        (1) Placement.--With respect to each military medical treatment 
    facility participating in the pilot program with a pharmacy, the 
    Secretary shall place in a conspicuous location at the pharmacy an 
    electronic sign that displays the current average wait time to 
    receive a filled prescription for a pharmaceutical agent.
        (2) Determination.--In carrying out paragraph (1), every 30 
    minutes, the Secretary shall determine the average wait time to 
    display under such paragraph by calculating, for the four-hour 
    period preceding the calculation, the average length of time 
    beginning at the time of submission by a patient of a prescription 
    for a pharmaceutical agent and ending at the time at which the 
    pharmacy dispenses the pharmaceutical agent to the patient.
    (e) Duration.--The Secretary shall carry out the pilot program for 
a period that is not more than two years.
    (f) Report.--
        (1) Submission.--Not later than 90 days after the completion of 
    the pilot program, the Secretary shall submit to the Committees on 
    Armed Services of the House of Representatives and the Senate a 
    report on the pilot program.
        (2) Elements.--The report under paragraph (1) shall include--
            (A) the costs for displaying the wait times under 
        subsections (c) and (d);
            (B) any changes in patient satisfaction;
            (C) any changes in patient behavior with respect to using 
        urgent care and pharmacy services;
            (D) any changes in pharmacy operations and productivity;
            (E) a cost-benefit analysis of posting such wait times; and
            (F) the feasibility of expanding the posting of wait times 
        in emergency departments in military medical treatment 
        facilities.
    (g) Qualified Medical Professional Defined.--In this section, the 
term ``qualified medical professional'' means a doctor of medicine, a 
doctor of osteopathy, a physician assistant, or an advanced registered 
nurse practitioner.
    SEC. 745. REQUIREMENT TO REVIEW AND MONITOR PRESCRIBING PRACTICES 
      AT MILITARY TREATMENT FACILITIES OF PHARMACEUTICAL AGENTS FOR 
      TREATMENT OF POST-TRAUMATIC STRESS.
    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall--
        (1) conduct a comprehensive review of the prescribing practices 
    at military treatment facilities of pharmaceutical agents for the 
    treatment of post-traumatic stress;
        (2) implement a process or processes to monitor the prescribing 
    practices at military treatment facilities of pharmaceutical agents 
    that are discouraged from use under the VA/DOD Clinical Practice 
    Guideline for Management of Post-Traumatic Stress; and
        (3) implement a plan to address any deviations from such 
    guideline in prescribing practices of pharmaceutical agents for 
    management of post-traumatic stress at such facilities.
    (b) Pharmaceutical Agent Defined.--In this section, the term 
``pharmaceutical agent'' has the meaning given that term in section 
1074g(g) of title 10, United States Code.
    SEC. 746. DEPARTMENT OF DEFENSE STUDY ON PREVENTING THE DIVERSION 
      OF OPIOID MEDICATIONS.
    (a) Study.--The Secretary of Defense shall conduct a study on the 
feasibility and effectiveness in preventing the diversion of opioid 
medications of the following measures:
        (1) Requiring that, in appropriate cases, opioid medications be 
    dispensed in vials using affordable technologies designed to 
    prevent access to the medications by anyone other than the intended 
    patient, such as a vial with a locking-cap closure mechanism.
        (2) Providing education on the risks of opioid medications to 
    individuals for whom such medications are prescribed, and to their 
    families, with special consideration given to raising awareness 
    among adolescents on such risks.
    (b) Briefing.--
        (1) In general.--Not later than one year after the date of the 
    enactment of this Act, the Secretary shall provide to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives a briefing on the results of the study conducted 
    under subsection (a).
        (2) Elements.--The briefing under paragraph (1) shall include 
    an assessment of the cost effectiveness of the measures studied 
    under subsection (a).
    SEC. 747. INCORPORATION INTO SURVEY BY DEPARTMENT OF DEFENSE OF 
      QUESTIONS ON EXPERIENCES OF MEMBERS OF THE ARMED FORCES WITH 
      FAMILY PLANNING SERVICES AND COUNSELING.
    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Defense shall initiate action to integrate into the 
Health Related Behavior Survey of Active Duty Military Personnel 
questions designed to obtain information on the experiences of members 
of the Armed Forces--
        (1) in accessing family planning services and counseling; and
        (2) in using family planning methods, including information on 
    which method was preferred and whether deployment conditions 
    affected the decision on which family planning method or methods to 
    be used.
    SEC. 748. ASSESSMENT OF TRANSITION TO TRICARE PROGRAM BY FAMILIES 
      OF MEMBERS OF RESERVE COMPONENTS CALLED TO ACTIVE DUTY AND 
      ELIMINATION OF CERTAIN CHARGES FOR SUCH FAMILIES.
    (a) Assessment of Transition to TRICARE Program.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall complete an 
    assessment of the extent to which families of members of the 
    reserve components of the Armed Forces serving on active duty 
    pursuant to a call or order to active duty for a period of more 
    than 30 days experience difficulties in transitioning from health 
    care arrangements relied upon when the member is not in such an 
    active duty status to health care benefits under the TRICARE 
    program.
        (2) Elements.--The assessment under paragraph (1) shall address 
    the following:
            (A) The extent to which family members of members of the 
        reserve components of the Armed Forces are required to change 
        health care providers when they become eligible for health care 
        benefits under the TRICARE program.
            (B) The extent to which health care providers in the 
        private sector with whom such family members have established 
        relationships when not covered under the TRICARE program are 
        providers who--
                (i) are in a preferred provider network under the 
            TRICARE program;
                (ii) are participating providers under the TRICARE 
            program; or
                (iii) will agree to treat covered beneficiaries at a 
            rate not to exceed 115 percent of the maximum allowable 
            charge under the TRICARE program.
            (C) The extent to which such family members encounter 
        difficulties associated with a change in health care claims 
        administration, health care authorizations, or other 
        administrative matters when transitioning to health care 
        benefits under the TRICARE program.
            (D) Any particular reasons for, or circumstances that 
        explain, the conditions described in subparagraphs (A), (B), 
        and (C).
            (E) The effects of the conditions described in 
        subparagraphs (A), (B), and (C) on the health care experience 
        of such family members.
            (F) Recommendations for changes in policies and procedures 
        under the TRICARE program, or other administrative action by 
        the Secretary, to remedy or mitigate difficulties faced by such 
        family members in transitioning to health care benefits under 
        the TRICARE program.
            (G) Recommendations for legislative action to remedy or 
        mitigate such difficulties.
            (H) Such other matters as the Secretary determines relevant 
        to the assessment.
        (3) Report.--
            (A) In general.--Not later than 180 days after completing 
        the assessment under paragraph (1), the Secretary shall submit 
        to the Committees on Armed Services of the Senate and the House 
        of Representatives a report detailing the results of the 
        assessment.
            (B) Analysis of recommendations.--The report required by 
        subparagraph (A) shall include an analysis of each 
        recommendation for legislative action addressed under paragraph 
        (2)(G), together with a cost estimate for implementing each 
        such action.
    (b) Expansion of Authority To Eliminate Balance Billing.--Section 
1079(h)(4)(C)(ii) of title 10, United States Code, is amended by 
striking ``in support of a contingency operation under a provision of 
law referred to in section 101(a)(13)(B) of this title''.
    (c) Definitions.--In this section, the terms ``covered 
beneficiary'' and ``TRICARE program'' have the meanings given those 
terms in section 1072 of title 10, United States Code.
    SEC. 749. OVERSIGHT OF GRADUATE MEDICAL EDUCATION PROGRAMS OF 
      MILITARY DEPARTMENTS.
    (a) Process.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall establish and 
implement a process to provide oversight of the graduate medical 
education programs of the military departments to ensure that such 
programs fully support the operational medical force readiness 
requirements for health care providers of the Armed Forces and the 
medical readiness of the Armed Forces. The process shall include the 
following:
        (1) A process to review such programs to ensure, to the extent 
    practicable, that such programs are--
            (A) conducted jointly among the military departments; and
            (B) focused on, and related to, operational medical force 
        readiness requirements.
        (2) A process to minimize duplicative programs relating to such 
    programs among the military departments.
        (3) A process to ensure that--
            (A) assignments of faculty, support staff, and students 
        within such programs are coordinated among the military 
        departments; and
            (B) the Secretary optimizes resources by using military 
        medical treatment facilities as training platforms when and 
        where most appropriate.
        (4) A process to review and, if necessary, restructure or 
    realign, such programs to sustain and improve operational medical 
    force readiness.
    (b) Report.--Not later than 30 days after the date on which the 
Secretary establishes the process under subsection (a), the Secretary 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report that describes such process. The 
report shall include a description of each graduate medical education 
program of the military departments, categorized by the following:
        (1) Programs that provide direct support to operational medical 
    force readiness.
        (2) Programs that provide indirect support to operational 
    medical force readiness.
        (3) Academic programs that provide other medical support.
    (c) Comptroller General Review and Report.--
        (1) Review.--The Comptroller General of the United States shall 
    conduct a review of the process established under subsection (a), 
    including with respect to each process described in paragraphs (1) 
    through (4) of such subsection.
        (2) Report.--Not later than 180 days after the date on which 
    the Secretary submits the report under subsection (b), the 
    Comptroller General shall submit to the Committees on Armed 
    Services of the Senate and the House of Representatives the review 
    conducted under paragraph (1), including an assessment of the 
    elements of the process established under subsection (a).
    SEC. 750. STUDY ON HEALTH OF HELICOPTER AND TILTROTOR PILOTS.
    (a) Study Required.--The Secretary of Defense shall carry out a 
study of career helicopter and tiltrotor pilots to assess potential 
links between the operation of helicopter and tiltrotor aircraft and 
acute and chronic medical conditions experienced by such pilots.
    (b) Elements.--The study under subsection (a) shall include the 
following:
        (1) A study of career helicopter and tiltrotor pilots compared 
    to a control population that--
            (A) takes into account the amount of time such pilots 
        operated aircraft;
            (B) examines the severity and rates of acute and chronic 
        injuries experienced by such pilots; and
            (C) determines whether such pilots experience a higher 
        degree of acute and chronic medical conditions than the control 
        population.
        (2) If a higher degree of acute and chronic medical conditions 
    is observed among such pilots, an explanation of--
            (A) the specific causes of the conditions (such as whole 
        body vibration, seat and cockpit ergonomics, landing loads, 
        hard impacts, and pilot-worn gear); and
            (B) any costs associated with treating the conditions if 
        the causes are not mitigated.
        (3) A review of relevant scientific literature and prior 
    research.
        (4) Such other information as the Secretary determines to be 
    appropriate.
    (c) Duration.--The duration of the study under subsection (a) shall 
be not more than two years.
    (d) Report.--Not later than 30 days after the completion of the 
study under subsection (a), the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the study.
    SEC. 751. COMPTROLLER GENERAL REPORTS ON HEALTH CARE DELIVERY AND 
      WASTE IN MILITARY HEALTH SYSTEM.
    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and not less frequently than once each year 
thereafter for four years, the Comptroller General of the United States 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report assessing the delivery of health care 
in the military health system, with an emphasis on identifying 
potential waste and inefficiency.
    (b) Elements.--
        (1) In general.--The reports submitted under subsection (a) 
    shall, within the direct and purchased care components of the 
    military health system, evaluate the following:
            (A) Processes for ensuring that health care providers 
        adhere to clinical practice guidelines.
            (B) Processes for reporting and resolving adverse medical 
        events.
            (C) Processes for ensuring program integrity by identifying 
        and resolving medical fraud and waste.
            (D) Processes for coordinating care within and between the 
        direct and purchased care components of the military health 
        system.
            (E) Procedures for administering the TRICARE program.
            (F) Processes for assessing and overseeing the efficiency 
        of clinical operations of military hospitals and clinics, 
        including access to care for covered beneficiaries at such 
        facilities.
        (2) Additional information.--The reports submitted under 
    subsection (a) may include, if the Comptroller General considers 
    feasible--
            (A) an estimate of the costs to the Department of Defense 
        relating to any waste or inefficiency identified in the report; 
        and
            (B) such recommendations for action by the Secretary of 
        Defense as the Comptroller General considers appropriate, 
        including eliminating waste and inefficiency in the direct and 
        purchased care components of the military health system.
    (c) Definitions.--In this section, the terms ``covered 
beneficiary'' and ``TRICARE program'' have the meaning given those 
terms in section 1072 of title 10, United States Code.

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

              Subtitle A--Acquisition Policy and Management

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

          Subtitle B--Department of Defense Acquisition Agility

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

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

Sec. 811. Modified restrictions on undefinitized contractual actions.
Sec. 812. Amendments relating to inventory and tracking of purchases of 
          services.
Sec. 813. Use of lowest price technically acceptable source selection 
          process.
Sec. 814. Procurement of personal protective equipment.
Sec. 815. Amendments related to detection and avoidance of counterfeit 
          electronic parts.
Sec. 816. Amendments to special emergency procurement authority.
Sec. 817. Compliance with domestic source requirements for footwear 
          furnished to enlisted members of the Armed Forces upon their 
          initial entry into the Armed Forces.
Sec. 818. Extension of authority for enhanced transfer of technology 
          developed at Department of Defense laboratories.
Sec. 819. Modified notification requirement for exercise of waiver 
          authority to acquire vital national security capabilities.
Sec. 820. Defense cost accounting standards.
Sec. 821. Increased micro-purchase threshold applicable to Department of 
          Defense procurements.
Sec. 822. Enhanced competition requirements.
Sec. 823. Revision to effective date of senior executive benchmark 
          compensation for allowable cost limitations.
Sec. 824. Treatment of independent research and development costs on 
          certain contracts.
Sec. 825. Exception to requirement to include cost or price to the 
          Government as a factor in the evaluation of proposals for 
          certain multiple-award task or delivery order contracts.
Sec. 826. Extension of program for comprehensive small business 
          contracting plans.
Sec. 827. Treatment of side-by-side testing of certain equipment, 
          munitions, and technologies manufactured and developed under 
          cooperative research and development agreements as use of 
          competitive procedures.
Sec. 828. Defense Acquisition Challenge Program amendments.
Sec. 829. Preference for fixed-price contracts.
Sec. 830. Requirement to use firm fixed-price contracts for foreign 
          military sales.
Sec. 831. Preference for performance-based contract payments.
Sec. 832. Contractor incentives to achieve savings and improve mission 
          performance.
Sec. 833. Sunset and repeal of certain contracting provisions.
Sec. 834. Flexibility in contracting award program.
Sec. 835. Protection of task order competition.
Sec. 836. Contract closeout authority.
Sec. 837. Closeout of old Department of the Navy contracts.

  Subtitle D--Provisions Relating to Major Defense Acquisition Programs

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

        Subtitle E--Provisions Relating to Acquisition Workforce

Sec. 861. Project management.
Sec. 862. Authority to waive tenure requirement for program managers for 
          program definition and program execution periods.
Sec. 863. Purposes for which the Department of Defense Acquisition 
          Workforce Development Fund may be used; advisory panel 
          amendments.
Sec. 864. Department of Defense Acquisition Workforce Development Fund 
          determination adjustment.
Sec. 865. Limitations on funds used for staff augmentation contracts at 
          management headquarters of the Department of Defense and the 
          military departments.
Sec. 866. Senior Military Acquisition Advisors in the Defense 
          Acquisition Corps.
Sec. 867. Authority of the Secretary of Defense under the acquisition 
          demonstration project.

           Subtitle F--Provisions Relating to Commercial Items

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

                   Subtitle G--Industrial Base Matters

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

                        Subtitle H--Other Matters

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

             Subtitle A--Acquisition Policy and Management

    SEC. 801. RAPID ACQUISITION AUTHORITY AMENDMENTS.
    Section 806 of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314; 10 U.S.C. 2302 note) is amended--
        (1) in subsection (a)(1)--
            (A) in subparagraph (A), by striking ``; or'' and inserting 
        a semicolon;
            (B) in subparagraph (B), by striking ``; and'' and 
        inserting ``; or''; and
            (C) by adding at the end the following new subparagraph:
        ``(C) developed or procured under the rapid fielding or rapid 
    prototyping acquisition pathways under section 804 of the National 
    Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 
    10 U.S.C. 2302 note); and'';
        (2) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(3) Specific procedures in accordance with the guidance 
    developed under section 804(a) of the National Defense 
    Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
    U.S.C. 2302 note).''; and
        (3) in subsection (c)--
            (A) in paragraph (2)(A)--
                (i) by striking ``Whenever the Secretary'' and 
            inserting ``(i) Except as provided under clause (ii), 
            whenever the Secretary''; and
                (ii) by adding at the end the following new clause:
        ``(ii) Clause (i) does not apply to acquisitions initiated in 
    the case of a determination by the Secretary that funds are 
    necessary to immediately initiate a project under the rapid 
    fielding or rapid prototyping acquisition pathways under section 
    804 of the National Defense Authorization Act for Fiscal Year 2016 
    (Public Law 114-92; 10 U.S.C. 2302 note) if the designated official 
    for acquisitions using such pathways is the service acquisition 
    executive.'';
            (B) in paragraph (3)--
                (i) in subparagraph (A), by inserting ``or upon the 
            Secretary making a determination that funds are necessary 
            to immediately initiate a project under the rapid fielding 
            or rapid prototyping acquisition pathways under section 804 
            of the National Defense Authorization Act for Fiscal Year 
            2016 (Public Law 114-92; 10 U.S.C. 2302 note) based on a 
            compelling national security need,'' after ``of paragraph 
            (1),'';
                (ii) in subparagraph (B)--

                    (I) by striking ``The authority'' and inserting 
                ``Except as provided under subparagraph (C), the 
                authority'';
                    (II) in clause (ii), by striking ``; and'' and 
                inserting a semicolon;
                    (III) in clause (iii), by striking the period at 
                the end and inserting ``; and''; and
                    (IV) by adding at the end the following new clause:

            ``(iv) in the case of a determination by the Secretary that 
        funds are necessary to immediately initiate a project under the 
        rapid fielding or rapid prototyping acquisition pathways under 
        section 804 of the National Defense Authorization Act for 
        Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note), in 
        an amount not more than $200,000,000 during any fiscal year.''; 
        and
                (iii) by adding at the end the following new 
            subparagraph:
        ``(C) For each of fiscal years 2017 and 2018, the limits set 
    forth in clauses (i) and (ii) of subparagraph (B) do not apply to 
    the exercise of authority under such clauses provided that the 
    total amount of supplies and associated support services acquired 
    as provided under such subparagraph does not exceed $800,000,000 
    during such fiscal year.'';
            (C) in paragraph (4)--
                (i) by redesignating subparagraphs (C), (D), and (E) as 
            subparagraphs (D), (E), and (F), respectively; and
                (ii) by inserting after subparagraph (B) the following 
            new subparagraph:
        ``(C) In the case of a determination by the Secretary under 
    paragraph (3)(A) that funds are necessary to immediately initiate a 
    project under the rapid fielding or rapid prototyping acquisition 
    pathways under section 804 of the National Defense Authorization 
    Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note), 
    the Secretary shall notify the congressional defense committees of 
    the determination within 10 days after the date of the use of such 
    funds.''; and
            (D) in paragraph (5)--
                (i) by striking ``Any acquisition'' and inserting ``(A) 
            Any acquisition''; and
                (ii) by adding at the end the following new 
            subparagraph:
        ``(B) Subparagraph (A) does not apply to acquisitions initiated 
    in the case of a determination by the Secretary that funds are 
    necessary to immediately initiate a project under the rapid 
    fielding or rapid prototyping acquisition pathways under section 
    804 of the National Defense Authorization Act for Fiscal Year 2016 
    (Public Law 114-92; 10 U.S.C. 2302 note).''.
    SEC. 802. AUTHORITY FOR TEMPORARY SERVICE OF PRINCIPAL MILITARY 
      DEPUTIES TO THE ASSISTANT SECRETARIES OF THE MILITARY DEPARTMENTS 
      FOR ACQUISITION AS ACTING ASSISTANT SECRETARIES.
    (a) Assistant Secretary of the Army for Acquisition, Logistics, and 
Technology.--Section 3016(b)(5)(B) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``In the event 
of a vacancy in the position of Assistant Secretary of the Army for 
Acquisition, Logistics, and Technology, the Principal Military Deputy 
may serve as Acting Assistant Secretary for a period of not more than 
one year.''.
    (b) Assistant Secretary of the Navy for Research, Development, and 
Acquisition.--Section 5016(b)(4)(B) of such title is amended by adding 
at the end the following new sentence: ``In the event of a vacancy in 
the position of Assistant Secretary of the Navy for Research, 
Development, and Acquisition, the Principal Military Deputy may serve 
as Acting Assistant Secretary for a period of not more than one 
year.''.
    (c) Assistant Secretary of the Air Force for Acquisition.--Section 
8016(b)(4)(B) of such title is amended by adding at the end the 
following new sentence: ``In the event of a vacancy in the position of 
Assistant Secretary of the Air Force for Acquisition, the Principal 
Military Deputy may serve as Acting Assistant Secretary for a period of 
not more than one year.''.
    SEC. 803. MODERNIZATION OF SERVICES ACQUISITION.
    (a) Review of Services Acquisition Categories.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall review and, if necessary, revise Department of Defense 
Instruction 5000.74, dated January 5, 2016 (in this section referred to 
as the ``Acquisition of Services Instruction''), and other guidance 
pertaining to the acquisition of services. In conducting the review, 
the Secretary shall examine--
        (1) how the acquisition community should consider the changing 
    nature of the technology and professional services markets, 
    particularly the convergence of hardware and services; and
        (2) the services acquisition portfolio groups referenced in the 
    Acquisition of Services Instruction and other guidance in order to 
    ensure the portfolio groups are fully reflective of changes to the 
    technology and professional services market.
    (b) Guidance Regarding Training and Development of the Acquisition 
Workforce.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall issue 
    guidance addressing the training and development of the Department 
    of Defense workforce engaged in the procurement of services, 
    including those personnel not designated as members of the 
    acquisition workforce.
        (2) Identification of training and professional development 
    opportunities and alternatives.--The guidance required under 
    paragraph (1) shall identify training and professional development 
    opportunities and alternatives, not limited to existing Department 
    of Defense institutions, that focus on and provide relevant 
    training and professional development in commercial business models 
    and contracting.
        (3) Treatment of training and professional development.--Any 
    training and professional development provided pursuant to this 
    subsection outside Department of Defense institutions shall be 
    deemed to be equivalent to similar training certified or provided 
    by the Defense Acquisition University.
    SEC. 804. DEFENSE MODERNIZATION ACCOUNT AMENDMENTS.
    (a) Funds Available for Account.--Section 2216(b)(1) of title 10, 
United States Code, is amended by striking ``commencing''.
    (b) Transfers to Account.--Section 2216(c) of such title is 
amended--
        (1) in paragraph (1)(A)--
            (A) by striking ``or the Secretary of Defense with respect 
        to Defense-wide appropriations accounts'' and inserting ``, or 
        the Secretary of Defense with respect to Defense-wide 
        appropriations accounts,''; and
            (B) by striking ``that Secretary'' and inserting ``the 
        Secretary concerned'';
        (2) in paragraph (1)(B)--
            (A) by inserting after ``following funds'' the following: 
        ``that have been appropriated for fiscal years after fiscal 
        year 2016 and are'';
            (B) in clause (i)--
                (i) by striking ``for procurement'' and inserting ``for 
            new obligations'';
                (ii) by striking ``a particular procurement'' and 
            inserting ``an acquisition program''; and
                (iii) by striking ``that procurement'' and inserting 
            ``that program'';
            (C) by striking clause (ii); and
            (D) by redesignating clause (iii) as clause (ii);
        (3) in paragraph (2)--
            (A) by striking ``, other than funds referred to in 
        subparagraph (B)(iii) of such paragraph,''; and
            (B) by striking ``if--'' and all that follows through ``(B) 
        the balance of funds'' and inserting ``if the balance of 
        funds'';
        (4) in paragraph (3)--
            (A) by striking ``credited to'' both places it appears and 
        inserting ``deposited in''; and
            (B) by inserting ``and obligation'' after ``available for 
        transfer''; and
        (5) by striking paragraph (4).
    (c) Authorized Use of Funds.--Section 2216(d) of such title is 
amended--
        (1) in paragraph (1)--
            (A) by striking ``commencing''; and
            (B) by striking ``Secretary of Defense'' and inserting 
        ``Secretary concerned'';
        (2) in paragraph (2), by striking ``a procurement program'' and 
    inserting ``an acquisition program'';
        (3) by amending paragraph (3) to read as follows:
        ``(3) For research, development, test, and evaluation, for 
    procurement, and for sustainment activities necessary for paying 
    costs of unforeseen contingencies that are approved by the 
    milestone decision authority concerned, that could prevent an 
    ongoing acquisition program from meeting critical schedule or 
    performance requirements.''; and
        (4) by inserting at the end the following new paragraph:
        ``(4) For paying costs of changes to program requirements or 
    system configuration that are approved by the configuration 
    steering board for a major defense acquisition program.''.
    (d) Limitations.--Section 2216(e) of such title is amended--
        (1) in paragraph (1), by striking ``procurement program'' both 
    places it appears and inserting ``acquisition program''; and
        (2) in paragraph (2), by striking ``authorized appropriations'' 
    and inserting ``authorized appropriations, unless the procedures 
    for initiating a new start program are complied with''.
    (e) Transfer of Funds.--Section 2216(f)(1) of such title is amended 
by striking ``Secretary of Defense'' and inserting ``Secretary of a 
military department, or the Secretary of Defense with respect to 
Defense-wide appropriations accounts,''.
    (f) Availability of Funds by Appropriation.--Section 2216(g) of 
such title is amended--
        (1) by striking ``in accordance with the provisions of 
    appropriations Acts''; and
        (2) by adding at the end the following: ``Funds deposited in 
    the Defense Modernization Account shall remain available for 
    obligation until the end of the third fiscal year that follows the 
    fiscal year in which the amounts are deposited in the account.''.
    (g) Secretary to Act Through Comptroller.--Section 2216(h)(2) of 
such title is amended--
        (1) by redesignating subparagraphs (A), (B), and (C) as 
    subparagraphs (B), (C), and (D), respectively;
        (2) by inserting before subparagraph (B), as so redesignated, 
    the following new subparagraph (A):
            ``(A) the establishment and management of subaccounts for 
        each of the military departments and Defense Agencies concerned 
        for the use of funds in the Defense Modernization Account, 
        consistent with each military department's or Defense Agency's 
        deposits in the Account;'';
        (3) in subparagraph (C), as so redesignated, by inserting ``and 
    subaccounts'' after ``Account''; and
        (4) in subparagraph (D), as so redesignated, by striking 
    ``subsection (c)(1)(B)(iii)'' and inserting ``subsection 
    (c)(1)(B)(ii)''.
    (h) Definitions.--Paragraph (1) of section 2216(i) of such title is 
amended to read as follows:
        ``(1) The term `major defense acquisition program' has the 
    meaning given the term in section 2430(a) of this title.''.
    (j) Expiration of Authority.--Section 2216(j)(1) of such title is 
amended by striking ``terminates at the close of September 30, 2006'' 
and inserting ``terminates at the close of September 30, 2022''.

         Subtitle B--Department of Defense Acquisition Agility

    SEC. 805. MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF MAJOR 
      WEAPON SYSTEMS.
    (a) Modular Open System Approach.--
        (1) In general.--Part IV of subtitle A of title 10, United 
    States Code, is amended by inserting after chapter 144A the 
    following new chapter:

     ``CHAPTER 144B--WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS

``Subchapter 
                                                                    Sec.
``I. Modular Open System Approach in Development of Weapon Systems 2446a

``II. Development, Prototyping, and Deployment of Weapon System 
Components and Technology......................................... 2447a

``III. Cost, Schedule, and Performance of Major Defense 
Acquisition Programs.............................................. 2448a

 ``SUBCHAPTER I--MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF WEAPON 
                                SYSTEMS

``Sec.
``2446a. Requirement for modular open system approach in major defense 
          acquisition programs; definitions.
``2446b. Requirement to address modular open system approach in program 
          capabilities development and acquisition weapon system design.
``2446c. Requirements relating to availability of major system 
          interfaces and support for modular open system approach.

``Sec. 2446a. Requirement for modular open system approach in major 
     defense acquisition programs; definitions
    ``(a) Modular Open System Approach Requirement.--A major defense 
acquisition program that receives Milestone A or Milestone B approval 
after January 1, 2019, shall be designed and developed, to the maximum 
extent practicable, with a modular open system approach to enable 
incremental development and enhance competition, innovation, and 
interoperability.
    ``(b) Definitions.--In this chapter:
        ``(1) The term `modular open system approach' means, with 
    respect to a major defense acquisition program, an integrated 
    business and technical strategy that--
            ``(A) employs a modular design that uses major system 
        interfaces between a major system platform and a major system 
        component, between major system components, or between major 
        system platforms;
            ``(B) is subjected to verification to ensure major system 
        interfaces comply with, if available and suitable, widely 
        supported and consensus-based standards;
            ``(C) uses a system architecture that allows severable 
        major system components at the appropriate level to be 
        incrementally added, removed, or replaced throughout the life 
        cycle of a major system platform to afford opportunities for 
        enhanced competition and innovation while yielding--
                ``(i) significant cost savings or avoidance;
                ``(ii) schedule reduction;
                ``(iii) opportunities for technical upgrades;
                ``(iv) increased interoperability, including system of 
            systems interoperability and mission integration; or
                ``(v) other benefits during the sustainment phase of a 
            major weapon system; and
            ``(D) complies with the technical data rights set forth in 
        section 2320 of this title.
        ``(2) The term `major system platform' means the highest level 
    structure of a major weapon system that is not physically mounted 
    or installed onto a higher level structure and on which a major 
    system component can be physically mounted or installed.
        ``(3) The term `major system component'--
            ``(A) means a high level subsystem or assembly, including 
        hardware, software, or an integrated assembly of both, that can 
        be mounted or installed on a major system platform through 
        well-defined major system interfaces; and
            ``(B) includes a subsystem or assembly that is likely to 
        have additional capability requirements, is likely to change 
        because of evolving technology or threat, is needed for 
        interoperability, facilitates incremental deployment of 
        capabilities, or is expected to be replaced by another major 
        system component.
        ``(4) The term `major system interface'--
            ``(A) means a shared boundary between a major system 
        platform and a major system component, between major system 
        components, or between major system platforms, defined by 
        various physical, logical, and functional characteristics, such 
        as electrical, mechanical, fluidic, optical, radio frequency, 
        data, networking, or software elements; and
            ``(B) is characterized clearly in terms of form, function, 
        and the content that flows across the interface in order to 
        enable technological innovation, incremental improvements, 
        integration, and interoperability.
        ``(5) The term `program capability document' means, with 
    respect to a major defense acquisition program, a document that 
    specifies capability requirements for the program, such as a 
    capability development document or a capability production 
    document.
        ``(6) The terms `program cost targets' and `fielding target' 
    have the meanings provided in section 2448a(a) of this title.
        ``(7) The term `major defense acquisition program' has the 
    meaning provided in section 2430 of this title.
        ``(8) The term `major weapon system' has the meaning provided 
    in section 2379(f) of this title.
``Sec. 2446b. Requirement to address modular open system approach in 
     program capabilities development and acquisition weapon system 
     design
    ``(a) Program Capability Document.--A program capability document 
for a major defense acquisition program shall identify and 
characterize--
        ``(1) the extent to which requirements for system performance 
    are likely to evolve during the life cycle of the system because of 
    evolving technology, threat, or interoperability needs; and
        ``(2) for requirements that are expected to evolve, the minimum 
    acceptable capability that is necessary for initial operating 
    capability of the major defense acquisition program.
    ``(b) Analysis of Alternatives.--The Director of Cost Assessment 
and Performance Evaluation, in formulating study guidance for analyses 
of alternatives for major defense acquisition programs and performing 
such analyses under section 139a(d)(4) of this title, shall ensure that 
any such analysis for a major defense acquisition program includes 
consideration of evolutionary acquisition, prototyping, and a modular 
open system approach.
    ``(c) Acquisition Strategy.--In the case of a major defense 
acquisition program that uses a modular open system approach, the 
acquisition strategy required under section 2431a of this title shall--
        ``(1) clearly describe the modular open system approach to be 
    used for the program;
        ``(2) differentiate between the major system platform and major 
    system components being developed under the program, as well as 
    major system components developed outside the program that will be 
    integrated into the major defense acquisition program;
        ``(3) clearly describe the evolution of major system components 
    that are anticipated to be added, removed, or replaced in 
    subsequent increments;
        ``(4) identify additional major system components that may be 
    added later in the life cycle of the major system platform;
        ``(5) clearly describe how intellectual property and related 
    issues, such as technical data deliverables, that are necessary to 
    support a modular open system approach, will be addressed; and
        ``(6) clearly describe the approach to systems integration and 
    systems-level configuration management to ensure mission and 
    information assurance.
    ``(d) Request for Proposals.--The milestone decision authority for 
a major defense acquisition program that uses a modular open system 
approach shall ensure that a request for proposals for the development 
or production phases of the program shall describe the modular open 
system approach and the minimum set of major system components that 
must be included in the design of the major defense acquisition 
program.
    ``(e) Milestone B.--A major defense acquisition program may not 
receive Milestone B approval under section 2366b of this title until 
the milestone decision authority determines in writing that--
        ``(1) in the case of a program that uses a modular open system 
    approach--
            ``(A) the program incorporates clearly defined major system 
        interfaces between the major system platform and major system 
        components, between major system components, and between major 
        system platforms;
            ``(B) such major system interfaces are consistent with the 
        widely supported and consensus-based standards that exist at 
        the time of the milestone decision, unless such standards are 
        unavailable or unsuitable for particular major system 
        interfaces; and
            ``(C) the Government has arranged to obtain appropriate and 
        necessary intellectual property rights with respect to such 
        major system interfaces upon completion of the development of 
        the major system platform; or
        ``(2) in the case of a program that does not use a modular open 
    system approach, that the use of a modular open system approach is 
    not practicable.
``Sec. 2446c. Requirements relating to availability of major system 
     interfaces and support for modular open system approach
    ``The Secretary of each military department shall--
        ``(1) coordinate with the other military departments, the 
    defense agencies, defense and other private sector entities, 
    national standards-setting organizations, and, when appropriate, 
    with elements of the intelligence community with respect to the 
    specification, identification, development, and maintenance of 
    major system interfaces and standards for use in major system 
    platforms, where practicable;
        ``(2) ensure that major system interfaces incorporate 
    commercial standards and other widely supported consensus-based 
    standards that are validated, published, and maintained by 
    recognized standards organizations to the maximum extent 
    practicable;
        ``(3) ensure that sufficient systems engineering and 
    development expertise and resources are available to support the 
    use of a modular open system approach in requirements development 
    and acquisition program planning;
        ``(4) ensure that necessary planning, programming, and 
    budgeting resources are provided to specify, identify, develop, and 
    sustain the modular open system approach, associated major system 
    interfaces, systems integration, and any additional program 
    activities necessary to sustain innovation and interoperability; 
    and
        ``(5) ensure that adequate training in the use of a modular 
    open system approach is provided to members of the requirements and 
    acquisition workforce.''.
        (2) Clerical amendment.--The table of chapters for title 10, 
    United States Code, is amended by adding after the item relating to 
    chapter 144A the following new item:

``144B. Weapon Systems Development and Related Matters..........2446a''.

        (3) Conforming amendment.--Section 2366b(a)(3) of such title is 
    amended--
            (A) by striking ``and'' at the end of subparagraph (K); and
            (B) by inserting after subparagraph (L) the following new 
        subparagraph:
            ``(M) the requirements of section 2446b(e) of this title 
        are met; and''.
        (4) Effective date.--Subchapter I of chapter 144B of title 10, 
    United States Code, as added by paragraph (1), shall take effect on 
    January 1, 2017.
    (b) Requirement to Include Modular Open System Approach in Selected 
Acquisition Reports.--Section 2432(c)(1) of such title is amended--
        (1) by striking ``and'' at the end of subparagraph (F);
        (2) by redesignating subparagraph (G) as subparagraph (H); and
        (3) by inserting after subparagraph (F) the following new 
    subparagraph (G):
        ``(G) for each major defense acquisition program that receives 
    Milestone B approval after January 1, 2019, a brief summary 
    description of the key elements of the modular open system approach 
    as defined in section 2446a of this title or, if a modular open 
    system approach was not used, the rationale for not using such an 
    approach; and''.
    SEC. 806. DEVELOPMENT, PROTOTYPING, AND DEPLOYMENT OF WEAPON SYSTEM 
      COMPONENTS OR TECHNOLOGY.
    (a) Development, Prototyping, and Deployment of Weapon System 
Components or Technology.--
        (1) In general.--Chapter 144B of title 10, United States Code, 
    as added by section 805, is further amended by adding at the end 
    the following new subchapter:

  ``SUBCHAPTER II--DEVELOPMENT, PROTOTYPING, AND DEPLOYMENT OF WEAPON 
                    SYSTEM COMPONENTS OR TECHNOLOGY

``Sec.
``2447a. Weapon system component or technology prototype projects: 
          display of budget information.
``2447b. Weapon system component or technology prototype projects: 
          oversight.
``2447c. Requirements and limitations for weapon system component or 
          technology prototype projects.
``2447d. Mechanisms to speed deployment of successful weapon system 
          component or technology prototypes.
``2447e. Definition of weapon system component.

``Sec. 2447a. Weapon system component or technology prototype projects: 
     display of budget information
    ``(a) Requirements for Budget Display.--In the defense budget 
materials for any fiscal year after fiscal year 2017, the Secretary of 
Defense shall, with respect to advanced component development and 
prototype activities (within the research, development, test, and 
evaluation budget), set forth the amounts requested for each of the 
following:
        ``(1) Acquisition programs of record.
        ``(2) Development, prototyping, and experimentation of weapon 
    system components or other technologies, including those based on 
    commercial items and technologies, separate from acquisition 
    programs of record.
        ``(3) Other budget line items as determined by the Secretary of 
    Defense.
    ``(b) Additional Requirements.--For purposes of subsection (a)(2), 
the amounts requested for development, prototyping, and experimentation 
of weapon system components or other technologies shall be--
        ``(1) structured into either capability, weapon system 
    component, or technology portfolios that reflect the priority areas 
    for prototype projects; and
        ``(2) justified with general descriptions of the types of 
    capability areas and technologies being funded or expected to be 
    funded during the fiscal year concerned.
    ``(c) Definitions.--In this section, the terms `budget' and 
`defense budget materials' have the meaning given those terms in 
section 234 of this title.
``Sec. 2447b. Weapon system component or technology prototype projects: 
     oversight
    ``(a) Establishment.--The Secretary of each military department 
shall establish an oversight board or identify a similar existing group 
of senior advisors for managing prototype projects for weapon system 
components and other technologies and subsystems, including the use of 
funds for such projects, within the military department concerned.
    ``(b) Membership.--Each oversight board shall be comprised of 
senior officials with--
        ``(1) expertise in requirements; research, development, test, 
    and evaluation; acquisition; sustainment; or other relevant areas 
    within the military department concerned;
        ``(2) awareness of technology development activities and 
    opportunities in the Department of Defense, industry, and other 
    sources; and
        ``(3) awareness of the component capability requirements of 
    major weapon systems, including scheduling and fielding goals for 
    such component capabilities.
    ``(c) Functions.--The functions of each oversight board are as 
follows:
        ``(1) To issue a strategic plan every three years that 
    prioritizes the capability and weapon system component portfolio 
    areas for conducting prototype projects, based on assessments of--
            ``(A) high priority warfighter needs;
            ``(B) capability gaps or readiness issues with major weapon 
        systems;
            ``(C) opportunities to incrementally integrate new 
        components into major weapon systems based on commercial 
        technology or science and technology efforts that are expected 
        to be sufficiently mature to prototype within three years; and
            ``(D) opportunities to reduce operation and support costs 
        of major weapon systems.
        ``(2) To annually recommend funding levels for weapon system 
    component or technology development and prototype projects across 
    capability or weapon system component portfolios.
        ``(3) To annually recommend to the service acquisition 
    executive of the military department concerned specific weapon 
    system component or technology development and prototype projects, 
    subject to the requirements and limitations in section 2447c of 
    this title.
        ``(4) To ensure projects are managed by experts within the 
    Department of Defense who are knowledgeable in research, 
    development, test, and evaluation and who are aware of 
    opportunities for incremental deployment of component capabilities 
    and other technologies to major weapon systems or directly to 
    support warfighting capabilities.
        ``(5) To ensure projects are conducted in a manner that allows 
    for appropriate experimentation and technology risk.
        ``(6) To ensure projects have a plan for technology transition 
    of the prototype into a fielded system, program of record, or 
    operational use, as appropriate, upon successful achievement of 
    technical and project goals.
        ``(7) To ensure necessary technical, contracting, and financial 
    management resources are available to support each project.
        ``(8) To submit to the congressional defense committees a 
    semiannual notification that includes the following:
            ``(A) each weapon system component or technology prototype 
        project initiated during the preceding six months, including an 
        explanation of each project and its required funding.
            ``(B) the results achieved from weapon system component 
        prototype and technology projects completed and tested during 
        the preceding six months.
``Sec. 2447c. Requirements and limitations for weapon system component 
     or technology prototype projects
    ``(a) Limitation on Prototype Project Duration.--A prototype 
project shall be completed within two years of its initiation.
    ``(b) Merit-based Selection Process.--A prototype project shall be 
selected by the service acquisition executive of the military 
department concerned through a merit-based selection process that 
identifies the most promising, innovative, and cost-effective 
prototypes that address one or more of the elements set forth in 
subsection (c)(1) of section 2447b of this title and are expected to be 
successfully demonstrated in a relevant environment.
    ``(c) Type of Transaction.--Prototype projects shall be funded 
through contracts, cooperative agreements, or other transactions.
    ``(d) Funding Limit.--(1) Each prototype project may not exceed a 
total amount of $10,000,000 (based on fiscal year 2017 constant 
dollars), unless--
        ``(A) the Secretary of the military department, or the 
    Secretary's designee, approves a larger amount of funding for the 
    project, not to exceed $50,000,000; and
        ``(B) the Secretary, or the Secretary's designee, submits to 
    the congressional defense committees, within 30 days after approval 
    of such funding for the project, a notification that includes--
            ``(i) the project;
            ``(ii) expected funding for the project; and
            ``(iii) a statement of the anticipated outcome of the 
        project.
    ``(2) The Secretary of Defense may adjust the amounts (and the base 
fiscal year) provided in paragraph (1) on the basis of Department of 
Defense escalation rates.
    ``(e) Related Prototype Authorities.--Prototype projects that 
exceed the duration and funding limits established in this section 
shall be pursued under the rapid prototyping process established by 
section 804 of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114-92; 10 U.S.C. 2302 note). In addition, nothing in 
this subchapter shall affect the authority to carry out prototype 
projects under section 2371b or any other section of this title related 
to prototyping.
``Sec. 2447d. Mechanisms to speed deployment of successful weapon 
     system component or technology prototypes
    ``(a) Selection of Prototype Project for Production and Rapid 
Fielding.--A weapon system component or technology prototype project 
may be selected by the service acquisition executive of the military 
department concerned for a follow-on production contract or other 
transaction without the use of competitive procedures, notwithstanding 
the requirements of section 2304 of this title, if--
        ``(1) the follow-on production project addresses a high 
    priority warfighter need or reduces the costs of a weapon system;
        ``(2) competitive procedures were used for the selection of 
    parties for participation in the original prototype project;
        ``(3) the participants in the original prototype project 
    successfully completed the requirements of the project; and
        ``(4) a prototype of the system to be procured was demonstrated 
    in a relevant environment.
    ``(b) Special Transfer Authority.--(1) The Secretary of a military 
department may, as specified in advance by appropriations Acts, 
transfer funds that remain available for obligation in procurement 
appropriation accounts of the military department to fund the low-rate 
initial production of the rapid fielding project until required funding 
for full-rate production can be submitted and approved through the 
regular budget process of the Department of Defense.
    ``(2) The funds transferred under this subsection to fund the low-
rate initial production of a rapid fielding project shall be for a 
period not to exceed two years, the amount for such period may not 
exceed $50,000,000, and the special transfer authority provided in this 
subsection may not be used more than once to fund procurement of a 
particular new or upgraded system.
    ``(3) The special transfer authority provided in this subsection is 
in addition to any other transfer authority available to the Department 
of Defense.
    ``(c) Notification to Congress.--Within 30 days after the service 
acquisition executive of a military department selects a weapon system 
component or technology project for a follow-on production contract or 
other transaction, the service acquisition executive shall notify the 
congressional defense committees of the selection and provide a brief 
description of the rapid fielding project.
``Sec. 2447e. Definition of weapon system component
    ``In this subchapter, the term `weapon system component' has the 
meaning given the term `major system component' in section 2446a of 
this title.''.
        (2) Effective date.--Subchapter II of chapter 144B of title 10, 
    United States Code, as added by paragraph (1), shall take effect on 
    January 1, 2017.
    (b) Addition to Requirements Needed Before Milestone A Approval.--
Section 2366a(b) of such title is amended--
        (1) by striking ``and'' at the end of paragraph (7);
        (2) by redesignating paragraph (8) as paragraph (9); and
        (3) by inserting after paragraph (7) the following new 
    paragraph (8):
        ``(8) that, with respect to a program initiated after January 
    1, 2019, technology shall be developed in the program (after 
    Milestone A approval) only if the milestone decision authority 
    determines with a high degree of confidence that such development 
    will not delay the fielding target of the program, or, if the 
    milestone decision authority does not make such determination for a 
    major system component being developed under the program, the 
    milestone decision authority ensures that the technology related to 
    the major system component shall be sufficiently matured and 
    demonstrated in a relevant environment (after Milestone A approval) 
    separate from the program using the prototyping authorities in 
    subchapter II of chapter 144B of this title or other authorities, 
    as appropriate, and have an effective plan for adoption or 
    insertion by the relevant program; and''.
    SEC. 807. COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE 
      ACQUISITION PROGRAMS.
    (a) Cost, Schedule, and Performance of Major Defense Acquisition 
Programs.--
        (1) In general.--Chapter 144B of title 10, United States Code, 
    as added by section 805, is amended by adding at the end the 
    following new subchapter:

  ``SUBCHAPTER III--COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE 
                          ACQUISITION PROGRAMS

``Sec.
``2448a. Program cost, fielding, and performance goals in planning major 
          defense acquisition programs.
``2448b. Independent technical risk assessments.

``Sec. 2448a. Program cost, fielding, and performance goals in planning 
     major defense acquisition programs
    ``(a) Program Cost and Fielding Targets.--(1) Before funds are 
obligated for technology development, systems development, or 
production of a major defense acquisition program, the Secretary of 
Defense shall ensure, by establishing the goals described in paragraph 
(2), that the milestone decision authority for the major defense 
acquisition program approves a program that will--
        ``(A) be affordable;
        ``(B) incorporate program planning that anticipates the 
    evolution of capabilities to meet changing threats, technology 
    insertion, and interoperability; and
        ``(C) be fielded when needed.
    ``(2) The goals described in this paragraph are goals for--
        ``(A) the procurement unit cost and sustainment cost (referred 
    to in this section as the `program cost targets');
        ``(B) the date for initial operational capability (referred to 
    in this section as the `fielding target'); and
        ``(C) technology maturation, prototyping, and a modular open 
    system approach to evolve system capabilities and improve 
    interoperability.
    ``(b) Delegation.--The responsibilities of the Secretary of Defense 
in subsection (a) may be delegated only to the Deputy Secretary of 
Defense.
    ``(c) Definitions.--In this section:
        ``(1) The term `procurement unit cost' has the meaning provided 
    in section 2432(a)(2) of this title.
        ``(2) The term `initial capabilities document' has the meaning 
    provided in section 2366a(d)(2) of this title.
``Sec. 2448b. Independent technical risk assessments
    ``(a) In General.--With respect to a major defense acquisition 
program, the Secretary of Defense shall ensure that an independent 
technical risk assessment is conducted--
        ``(1) before any decision to grant Milestone A approval for the 
    program pursuant to section 2366a of this title, that identifies 
    critical technologies and manufacturing processes that need to be 
    matured; and
        ``(2) before any decision to grant Milestone B approval for the 
    program pursuant to section 2366b of this title, any decision to 
    enter into low-rate initial production or full-rate production, or 
    at any other time considered appropriate by the Secretary, that 
    includes the identification of any critical technologies or 
    manufacturing processes that have not been successfully 
    demonstrated in a relevant environment.
    ``(b) Categorization of Technical Risk Levels.--The Secretary shall 
issue guidance and a framework for categorizing the degree of technical 
and manufacturing risk in a major defense acquisition program.''.
        (2) Effective date.--Subchapter III of chapter 144B of title 
    10, United States Code, as added by paragraph (1), shall apply with 
    respect to major defense acquisition programs that reach Milestone 
    A after October 1, 2017.
    (b) Modification of Milestone Decision Authority.--Effective 
January 1, 2017, subsection (d) of section 2430 of title 10, United 
States Code, as added by section 825(a) of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
907), is amended--
        (1) in paragraph (2)(A), by inserting ``subject to paragraph 
    (5),'' before ``the Secretary determines''; and
        (2) by adding at the end the following new paragraph:
    ``(5) The authority of the Secretary of Defense to designate an 
alternative milestone decision authority for a program with respect to 
which the Secretary determines that the program is addressing a joint 
requirement, as set forth in paragraph (2)(A), shall apply only for a 
major defense acquisition program that reaches Milestone A after 
October 1, 2016, and before October 1, 2019.''.
    (c) Adherence to Requirements in Major Defense Acquisition 
Programs.--Section 2547 of title 10, United States Code, is amended--
        (1) by redesignating subsections (b) and (c) as subsections (c) 
    and (d), respectively;
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Adherence to Requirements in Major Defense Acquisition 
Programs.--The Secretary of the military department concerned shall 
ensure that the program capability document supporting a Milestone B or 
subsequent decision for a major defense acquisition program may not be 
approved until the chief of the armed force concerned determines in 
writing that the requirements in the document are necessary and 
realistic in relation to the program cost and fielding targets 
established under section 2448a(a) of this title.''; and
        (3) by adding at the end of subsection (d), as so redesignated, 
    the following new paragraph:
        ``(3) The term `program capability document' has the meaning 
    provided in section 2446a(b)(5) of this title.''.
    (d) Amendment Relating to Determination Required Before Milestone A 
Approval.--Section 2366a(b)(4) of title 10, United States Code, is 
amended by inserting after ``areas of risk'' the following: ``, 
including risks determined by the identification of critical 
technologies required under section 2448b(a)(1) of this title or any 
other risk assessment''.
    (e) Amendment Relating to Certification Required Before Milestone B 
Approval.--Section 2366b(a) of title 10, United States Code, is 
amended--
        (1) in paragraph (2), by striking ``assessment by the Assistant 
    Secretary'' and all that follows through ``Test and Evaluation'' 
    and inserting ``technical risk assessment conducted under section 
    2448b of this title''; and
        (2) in paragraph (3), as amended by section 805(a)(3)(B)--
            (A) by striking ``and'' at the end of subparagraph (C);
            (B) by redesignating subparagraphs (D) through (M) as 
        subparagraphs (E) through (N), respectively; and
            (C) by inserting after subparagraph (C) the following new 
        subparagraph (D):
            ``(D) the estimated procurement unit cost for the program 
        and the estimated date for initial operational capability for 
        the baseline description for the program (established under 
        section 2435) do not exceed the program cost and fielding 
        targets established under section 2448a(a) of this title, or, 
        if such estimated cost is higher than the program cost targets 
        or if such estimated date is later than the fielding target, 
        the program cost targets have been increased or the fielding 
        target has been delayed by the Secretary of Defense after a 
        request for such increase or delay by the milestone decision 
        authority;''.
    SEC. 808. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION PROGRAMS.
    (a) Milestone A Report.--
        (1) In general.--Section 2366a(c) of title 10, United States 
    Code, is amended to read as follows:
    ``(c) Submissions to Congress on Milestone A.--
        ``(1) Brief summary report.--Not later than 15 days after 
    granting Milestone A approval for a major defense acquisition 
    program, the milestone decision authority for the program shall 
    provide to the congressional defense committees and, in the case of 
    intelligence or intelligence-related activities, the congressional 
    intelligence committees a brief summary report that contains the 
    following elements:
            ``(A) The program cost and fielding targets established by 
        the Secretary of Defense under section 2448a(a) of this title.
            ``(B) The estimated cost and schedule for the program 
        established by the military department concerned, including--
                ``(i) the dollar values estimated for the program 
            acquisition unit cost and total life-cycle cost; and
                ``(ii) the planned dates for each program milestone and 
            initial operational capability.
            ``(C) The independent estimated cost for the program 
        established pursuant to section 2334(a)(6) of this title, and 
        any independent estimated schedule for the program, including--
                ``(i) as assessment of the major contributors to the 
            program acquisition unit cost and total life-cycle cost; 
            and
                ``(ii) the planned dates for each program milestone and 
            initial operational capability.
            ``(D) A summary of the technical or manufacturing risks 
        associated with the program, as determined by the military 
        department concerned, including identification of any critical 
        technologies or manufacturing processes that need to be 
        matured.
            ``(E) A summary of the independent technical risk 
        assessment conducted or approved under section 2448b of this 
        title, including identification of any critical technologies or 
        manufacturing processes that need to be matured.
            ``(F) A summary of any sufficiency review conducted by the 
        Director of Cost Assessment and Program Evaluation of the 
        analysis of alternatives performed for the program (as referred 
        to in section 2366a(b)(6) of this title).
            ``(G) Any other information the milestone decision 
        authority considers relevant.
        ``(2) Additional information.--(A) At the request of any of the 
    congressional defense committees or, in the case of intelligence or 
    intelligence-related activities, the congressional intelligence 
    committees, the milestone decision authority shall submit to the 
    committee an explanation of the basis for a determination made 
    under subsection (b) with respect to a major defense acquisition 
    program, together with a copy of the written determination, or 
    further information or underlying documentation for the information 
    in a brief summary report submitted under paragraph (1), including 
    the independent cost and schedule estimates and the independent 
    technical risk assessments referred to in that paragraph.
        ``(B) The explanation or information shall be submitted in 
    unclassified form, but may include a classified annex.''.
        (2) Definitions.--Section 2366a(d) of such title is amended by 
    adding at the end the following new paragraphs:
        ``(8) The term `fielding target' has the meaning given that 
    term in section 2448a(a) of this title.
        ``(9) The term `major system component' has the meaning given 
    that term in section 2446a(b)(3) of this title.
        ``(10) The term `congressional intelligence committees' has the 
    meaning given that term in section 437(c) of this title.''.
    (b) Milestone B Report.--
        (1) In general.--Section 2366b(c) of title 10, United States 
    Code, is amended to read as follows:
    ``(c) Submissions to Congress on Milestone B.--
        ``(1) Brief summary report.--Not later than 15 days after 
    granting Milestone B approval for a major defense acquisition 
    program, the milestone decision authority for the program shall 
    provide to the congressional defense committees and, in the case of 
    intelligence or intelligence-related activities, the congressional 
    intelligence committees a brief summary report that contains the 
    following elements:
            ``(A) The program cost and fielding targets established by 
        the Secretary of Defense under section 2448a(a) of this title.
            ``(B) The estimated cost and schedule for the program 
        established by the military department concerned, including--
                ``(i) the dollar values estimated for the program 
            acquisition unit cost, average procurement unit cost, and 
            total life-cycle cost; and
                ``(ii) the planned dates for each program milestone, 
            initial operational test and evaluation, and initial 
            operational capability.
            ``(C) The independent estimated cost for the program 
        established pursuant to section 2334(a)(6) of this title, and 
        any independent estimated schedule for the program, including--
                ``(i) the dollar values and ranges estimated for the 
            program acquisition unit cost, average procurement unit 
            cost, and total life-cycle cost; and
                ``(ii) the planned dates for each program milestone, 
            initial operational test and evaluation, and initial 
            operational capability.
            ``(D) A summary of the technical and manufacturing risks 
        associated with the program, as determined by the military 
        department concerned, including identification of any critical 
        technologies or manufacturing processes that have not been 
        successfully demonstrated in a relevant environment.
            ``(E) A summary of the independent technical risk 
        assessment conducted or approved under section 2448b of this 
        title, including identification of any critical technologies or 
        manufacturing processes that have not been successfully 
        demonstrated in a relevant environment.
            ``(F) A statement of whether a modular open system approach 
        is being used for the program.
            ``(G) Any other information the milestone decision 
        authority considers relevant.
        ``(2) Certifications and determinations.--(A) The 
    certifications and determination under subsection (a) with respect 
    to a major defense acquisition program shall be submitted to the 
    congressional defense committees with the first Selected 
    Acquisition Report submitted under section 2432 of this title after 
    completion of the certification.
        ``(B) The milestone decision authority shall retain records of 
    the basis for the certifications and determination under paragraphs 
    (1), (2), and (3) of subsection (a).
        ``(3) Additional information.--(A) At the request of any of the 
    congressional defense committees or, in the case of intelligence or 
    intelligence-related activities, the congressional intelligence 
    committees, the milestone decision authority shall submit to the 
    committee an explanation of the basis for the certifications and 
    determination under paragraphs (1), (2), and (3) of subsection (a) 
    with respect to a major defense acquisition program or further 
    information or underlying documentation for the information in a 
    brief summary report submitted under paragraph (1), including the 
    independent cost and schedule estimates and the independent 
    technical risk assessments referred to in that paragraph.
        ``(B) The explanation or information shall be submitted in 
    unclassified form, but may include a classified annex.''.
        (2) Definitions.--Section 2366b(g) of such title is amended by 
    adding at the end the following new paragraphs:
        ``(6) The term `fielding target' has the meaning given that 
    term in section 2448a(a) of this title.
        ``(7) The term `major system component' has the meaning given 
    that term in section 2446a(b)(3) of this title.
        ``(8) The term `congressional intelligence committees' has the 
    meaning given that term in section 437(c) of this title.''.
    (c) Milestone C Report.--
        (1) In general.--Chapter 139 of such title is amended by 
    inserting after section 2366b the following new section:
``Sec. 2366c. Major defense acquisition programs: submissions to 
     Congress on Milestone C
    ``(a) Brief Summary Report.--Not later than 15 days after granting 
Milestone C approval for a major defense acquisition program, the 
milestone decision authority for the program shall provide to the 
congressional defense committees and, in the case of intelligence or 
intelligence-related activities, the congressional intelligence 
committees a brief summary report that contains the following:
        ``(1) The estimated cost and schedule for the program 
    established by the military department concerned, including--
            ``(A) the dollar values estimated for the program 
        acquisition unit cost, average procurement unit cost, and total 
        life-cycle cost; and
            ``(B) the planned dates for initial operational test and 
        evaluation and initial operational capability.
        ``(2) The independent estimated cost for the program 
    established pursuant to section 2334(a)(6) of this title, and any 
    independent estimated schedule for the program, including--
            ``(A) the dollar values estimated for the program 
        acquisition unit cost, average procurement unit cost, and total 
        life-cycle cost; and
            ``(B) the planned dates for initial operational test and 
        evaluation and initial operational capability.
        ``(3) A summary of any production, manufacturing, and fielding 
    risks associated with the program.
    ``(b) Additional Information.--At the request of any of the 
congressional defense committees or, in the case of intelligence or 
intelligence-related activities, the congressional intelligence 
committees, the milestone decision authority shall submit to the 
committee further information or underlying documentation for the 
information in a brief summary report submitted under subsection (a), 
including the independent cost and schedule estimates and the 
independent technical risk assessments referred to in that subsection.
    ``(c) Congressional Intelligence Committees Defined.--In this 
section, the term `congressional intelligence committees' has the 
meaning given that term in section 437(c) of this title.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 2366b the following new item:

``2366c. Major defense acquisition programs: submissions to Congress on 
          Milestone C.''.
    SEC. 809. AMENDMENTS RELATING TO TECHNICAL DATA RIGHTS.
    (a) Rights Relating to Item or Process Developed Exclusively at 
Private Expense.--Subsection (a)(2)(C)(iii) of section 2320 of title 
10, United States Code, is amended by inserting after ``or process 
data'' the following: ``, including such data pertaining to a major 
system component''.
    (b) Rights Relating to Interface or Major System Interface.--
Subsection (a)(2) of section 2320 of such title is further amended--
        (1) by redesignating subparagraphs (F) and (G) as subparagraphs 
    (H) and (I), respectively;
        (2) in subparagraph (B), by striking ``Except as provided in 
    subparagraphs (C) and (D),'' and inserting ``Except as provided in 
    subparagraphs (C), (D), and (G),'';
        (3) in subparagraph (D)(i)(II), by striking ``is necessary'' 
    and inserting ``is a release, disclosure, or use of technical data 
    pertaining to an interface between an item or process and other 
    items or processes necessary'';
        (4) in subparagraph (E)--
            (A) by striking ``In the case'' and inserting ``Except as 
        provided in subparagraphs (F) and (G), in the case''; and
            (B) by striking ``negotiations). The United States shall 
        have'' and all that follows through ``such negotiated rights 
        shall'' and inserting the following: ``negotiations) and shall 
        be based on negotiations between the United States and the 
        contractor, except in any case in which the Secretary of 
        Defense determines, on the basis of criteria established in the 
        regulations, that negotiations would not be practicable. The 
        establishment of such rights shall''; and
        (5) by inserting after subparagraph (E) the following new 
    subparagraphs (F) and (G):
        ``(F) Interfaces developed with mixed funding.--Notwithstanding 
    subparagraph (E), the United States shall have government purpose 
    rights in technical data pertaining to an interface between an item 
    or process and other items or processes that was developed in part 
    with Federal funds and in part at private expense, except in any 
    case in which the Secretary of Defense determines, on the basis of 
    criteria established in the regulations, that negotiation of 
    different rights in such technical data would be in the best 
    interest of the United States.
        ``(G) Major system interfaces developed exclusively at private 
    expense or with mixed funding.--Notwithstanding subparagraphs (B) 
    and (E), the United States shall have government purpose rights in 
    technical data pertaining to a major system interface developed 
    exclusively at private expense or in part with Federal funds and in 
    part at private expense and used in a modular open system approach 
    pursuant to section 2446a of this title, except in any case in 
    which the Secretary of Defense determines that negotiation of 
    different rights in such technical data would be in the best 
    interest of the United States. Such major system interface shall be 
    identified in the contract solicitation and the contract. For 
    technical data pertaining to a major system interface developed 
    exclusively at private expense for which the United States asserts 
    government purpose rights, the Secretary of Defense shall negotiate 
    with the contractor the appropriate and reasonable compensation for 
    such technical data.''.
    (c) Amendment Relating to Deferred Ordering.--Subsection (b)(9) of 
section 2320 of such title is amended--
        (1) by striking ``at any time'' and inserting ``, until the 
    date occurring six years after acceptance of the last item (other 
    than technical data) under a contract or the date of contract 
    termination, whichever is later,'';
        (2) by striking ``or utilized in the performance of a 
    contract'' and inserting ``in the performance of the contract''; 
    and
        (3) by striking clause (ii) of subparagraph (B) and inserting 
    the following:
                ``(ii) is described in subparagraphs (D)(i)(II), (F), 
            and (G) of subsection (a)(2); and''.
    (d) Definitions.--Section 2320 of such title is further amended--
        (1) in subsection (f), by inserting ``Covered Government 
    Support Contractor Defined.--'' before ``In this section''; and
        (2) by adding at the end the following new subsection:
    ``(g) Additional Definitions.--In this section, the terms `major 
system component', `major system interface', and `modular open system 
approach' have the meanings provided in section 2446a of this title.''.
    (e) Amendments to Add Certain Headings for Readability.--Section 
2320(a) of such title is further amended--
        (1) in subparagraph (A) of paragraph (2), by inserting after 
    ``(A)'' the following: ``Development exclusively with federal 
    funds.--'';
        (2) in subparagraph (B) of such paragraph, by inserting after 
    ``(B)'' the following: ``Development exclusively at private 
    expense.--'';
        (3) in subparagraph (C) of such paragraph, by inserting after 
    ``(C)'' the following: ``Exception to subparagraph (b).--'';
        (4) in subparagraph (D) of such paragraph, by inserting after 
    ``(D)'' the following: ``Exception to subparagraph (b).--''; and
        (5) in subparagraph (E) of such paragraph, by inserting after 
    ``(E)'' the following: ``Development with mixed funding.--''. 
    (f) Government-industry Advisory Panel Amendments.--Section 813(b) 
of the National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114-92; 129 Stat. 892) is amended--
        (1) by adding at the end of paragraph (1) the following: ``The 
    panel shall develop recommendations for changes to sections 2320 
    and 2321 of title 10, United States Code, and the regulations 
    implementing such sections.'';
        (2) in paragraph (3)--
            (A) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively; and
            (B) by inserting after subparagraph (C) the following new 
        subparagraph (D):
            ``(D) Ensuring that the Department of Defense and 
        Department of Defense contractors have the technical data 
        rights necessary to support the modular open system approach 
        requirement set forth in section 2446a of title 10, United 
        States Code, taking into consideration the distinct 
        characteristics of major system platforms, major system 
        interfaces, and major system components developed exclusively 
        with Federal funds, exclusively at private expense, and with a 
        combination of Federal funds and private expense.''; and
        (3) by amending paragraph (4) to read as follows:
        ``(4) Final report.--Not later than February 1, 2017, the 
    advisory panel shall submit its final report and recommendations to 
    the Secretary of Defense and the congressional defense committees. 
    Not later than 60 days after receiving the report, the Secretary 
    shall submit any comments or recommendations to the congressional 
    defense committees.''.

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

    SEC. 811. MODIFIED RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL 
      ACTIONS.
    Section 2326 of title 10, United States Code, is amended--
        (1) in subsection (e)--
            (A) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B);
            (B) by inserting ``(1)'' before ``The head''; and
            (C) by adding at the end the following new paragraph:
    ``(2) If a contractor submits a qualifying proposal to definitize 
an undefinitized contractual action and the contracting officer for 
such action definitizes the contract after the end of the 180-day 
period beginning on the date on which the contractor submitted the 
qualifying proposal, the head of the agency concerned shall ensure that 
the profit allowed on the contract accurately reflects the cost risk of 
the contractor as such risk existed on the date the contractor 
submitted the qualifying proposal.'';
        (2) by redesignating subsections (f) and (g) as subsections (h) 
    and (i), respectively;
        (3) by inserting after subsection (e) the following new 
    subsections:
    ``(f) Time Limit.--No undefinitized contractual action may extend 
beyond 90 days without a written determination by the Secretary of the 
military department concerned, the head of the Defense Agency 
concerned, the commander of the combatant command concerned, or the 
Under Secretary of Defense for Acquisition, Technology, and Logistics 
(as applicable) that it is in the best interests of the military 
department, the Defense Agency, the combatant command, or the 
Department of Defense, respectively, to continue the action.
    ``(g) Foreign Military Contracts.--(1) Except as provided in 
paragraph (2), a contracting officer of the Department of Defense may 
not enter into an undefinitized contractual action for a foreign 
military sale unless the contractual action provides for agreement upon 
contractual terms, specifications, and price by the end of the 180-day 
period described in subsection (b)(1)(A).
    ``(2) The requirement under paragraph (1) may be waived in 
accordance with subsection (b)(4).''; and
        (4) in subsection (i), as redesignated by paragraph (2)--
            (A) in paragraph (1)--
                (i) by striking subparagraph (A); and
                (ii) by redesignating subparagraphs (B), (C), and (D) 
            as subparagraphs (A), (B), and (C), respectively; and
            (B) in paragraph (2), by striking ``complete and meaningful 
        audits'' and all that follows through the period and inserting 
        ``a meaningful audit of the information contained in the 
        proposal.''.
    SEC. 812. AMENDMENTS RELATING TO INVENTORY AND TRACKING OF 
      PURCHASES OF SERVICES.
    (a) Increased Threshold.--Subsection (a) of section 2330a of title 
10, United States Code, is amended by striking ``in excess of the 
simplified acquisition threshold'' and inserting ``in excess of 
$3,000,000''.
    (b) Specification of Services.--Subsection (a) of such section is 
further amended by striking the period at the end and inserting the 
following: ``, for services in the following service acquisition 
portfolio groups:
        ``(1) Logistics management services.
        ``(2) Equipment related services.
        ``(3) Knowledge-based services.
        ``(4) Electronics and communications services.''.
    (c) Inventory Summary.--Subsection (c) of such section is amended--
        (1) by striking ``(c) Inventory.--'' and inserting ``(c) 
    Inventory Summary.--''; and
        (2) in paragraph (1), by striking ``submit to Congress an 
    annual inventory'' and all that follows through ``for or on 
    behalf'' and inserting ``prepare an annual inventory, and submit to 
    Congress a summary of the inventory, of activities performed during 
    the preceding fiscal year pursuant to staff augmentation contracts 
    on behalf''.
    (d) Elimination of Certain Requirements.--Such section is further 
amended--
        (1) by striking subsections (d), (g), and (h); and
        (2) by redesignating subsections (e), (f), (i), and (j) as 
    subsections (d), (e), (g), and (h), respectively.
    (e) Specification of Services to Be Reviewed.--Subsection (d), as 
so redesignated, of such section, is amended in paragraph (1) by 
inserting after ``responsible'' the following: ``, with particular 
focus and attention on the following categories of high-risk product 
service codes (also referred to as Federal supply codes):
            ``(A) Special studies or analysis that is not research and 
        development.
            ``(B) Information technology and telecommunications.
            ``(C) Support, including professional, administrative, and 
        management.''.
    (f) Comptroller General Report.--Such section is further amended by 
inserting after subsection (e), as so redesignated, the following new 
subsection (f):
    ``(f) Comptroller General Report.--Not later than March 31, 2018, 
the Comptroller General of the United States shall submit to the 
congressional defense committees a report on the status of the data 
collection required in subsection (a) and an assessment of the efforts 
by the Department of Defense to implement subsection (e).''.
    (g) Definitions.--Subsection (h), as so redesignated, of such 
section is amended by adding at the end the following new paragraphs:
        ``(6) The term `service acquisition portfolio groups' means the 
    groups identified in Department of Defense Instruction 5000.74, 
    Defense Acquisition of Services (January 5, 2016) or successor 
    guidance.
        ``(7) The term `staff augmentation contracts' means services 
    contracts for personnel who are physically present in a Government 
    work space on a full-time or permanent part-time basis, for the 
    purpose of advising on, providing support to, or assisting a 
    Government agency in the performance of the agency's missions, 
    including authorized personal services contracts (as that term is 
    defined in section 2330a(g)(5) of this title).''.
    SEC. 813. USE OF LOWEST PRICE TECHNICALLY ACCEPTABLE SOURCE 
      SELECTION PROCESS.
    (a) Statement of Policy.--It shall be the policy of the Department 
of Defense to avoid using lowest price technically acceptable source 
selection criteria in circumstances that would deny the Department the 
benefits of cost and technical tradeoffs in the source selection 
process.
    (b) Revision of Defense Federal Acquisition Regulation 
Supplement.--Not later than 120 days after the date of the enactment of 
this Act, the Secretary of Defense shall revise the Defense Federal 
Acquisition Regulation Supplement to require that, for solicitations 
issued on or after the date that is 120 days after the date of the 
enactment of this Act, lowest price technically acceptable source 
selection criteria are used only in situations in which--
        (1) the Department of Defense is able to comprehensively and 
    clearly describe the minimum requirements expressed in terms of 
    performance objectives, measures, and standards that will be used 
    to determine acceptability of offers;
        (2) the Department of Defense would realize no, or minimal, 
    value from a contract proposal exceeding the minimum technical or 
    performance requirements set forth in the request for proposal;
        (3) the proposed technical approaches will require no, or 
    minimal, subjective judgment by the source selection authority as 
    to the desirability of one offeror's proposal versus a competing 
    proposal;
        (4) the source selection authority has a high degree of 
    confidence that a review of technical proposals of offerors other 
    than the lowest bidder would not result in the identification of 
    factors that could provide value or benefit to the Department;
        (5) the contracting officer has included a justification for 
    the use of a lowest price technically acceptable evaluation 
    methodology in the contract file; and
        (6) the Department of Defense has determined that the lowest 
    price reflects full life-cycle costs, including for operations and 
    support.
    (c) Avoidance of Use of Lowest Price Technically Acceptable Source 
Selection Criteria in Certain Procurements.--To the maximum extent 
practicable, the use of lowest price technically acceptable source 
selection criteria shall be avoided in the case of a procurement that 
is predominately for the acquisition of--
        (1) information technology services, cybersecurity services, 
    systems engineering and technical assistance services, advanced 
    electronic testing, audit or audit readiness services, or other 
    knowledge-based professional services;
        (2) personal protective equipment; or
        (3) knowledge-based training or logistics services in 
    contingency operations or other operations outside the United 
    States, including in Afghanistan or Iraq.
    (d) Reporting.--Not later than December 1, 2017, and annually 
thereafter for three years, the Comptroller General of the United 
States shall submit to the congressional defense committees a report on 
the number of instances in which lowest price technically acceptable 
source selection criteria is used for a contract exceeding $10,000,000, 
including an explanation of how the situations listed in subsection (b) 
were considered in making a determination to use lowest price 
technically acceptable source selection criteria.
    SEC. 814. PROCUREMENT OF PERSONAL PROTECTIVE EQUIPMENT.
    (a) Limitation.--Not later than 90 days after the date of the 
enactment of this Act, the Defense Federal Acquisition Regulation 
Supplement shall be revised--
        (1) to prohibit the use by the Department of Defense of reverse 
    auctions or lowest price technically acceptable contracting methods 
    for the procurement of personal protective equipment if the level 
    of quality or failure of the item could result in combat 
    casualties; and
        (2) to establish a preference for the use of best value 
    contracting methods for the procurement of such equipment.
    (b) Conforming Amendment.--Section 884 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
948; 10 U.S.C. 2302 note) is hereby repealed.
    SEC. 815. AMENDMENTS RELATED TO DETECTION AND AVOIDANCE OF 
      COUNTERFEIT ELECTRONIC PARTS.
    Section 818 of the National Defense Authorization Act for Fiscal 
Year 2012 (Public Law 112-81; 10 U.S.C. 2302 note) is amended--
        (1) in paragraph (3) of subsection (c)--
            (A) by striking the heading and inserting ``Suppliers 
        meeting anticounterfeiting requirements.--'';
            (B) in subparagraph (A)(i), by striking ``trusted suppliers 
        in accordance with regulations issued pursuant to subparagraph 
        (C) or (D) who'' and inserting ``suppliers that meet 
        anticounterfeiting requirements in accordance with regulations 
        issued pursuant to subparagraph (C) or (D) and that'';
            (C) in subparagraphs (A)(ii) and (A)(iii), by striking 
        ``trusted suppliers'' each place it appears and inserting 
        ``suppliers that meet anticounterfeiting requirements'';
            (D) in subparagraph (C), by striking ``as trusted suppliers 
        those'' and inserting ``suppliers'';
            (E) in subparagraph (D) in the matter preceding clause (i), 
        by striking ``trusted suppliers'' and inserting ``suppliers 
        that meet anticounterfeiting requirements''; and
            (F) in subparagraphs (D)(i) and (D)(iii), by striking 
        ``trusted'' each place it appears; and
        (2) in subsection (e)(2)(A)(v), by striking ``use of trusted 
    suppliers'' and inserting ``the use of suppliers that meet 
    applicable anticounterfeiting requirements''.
    SEC. 816. AMENDMENTS TO SPECIAL EMERGENCY PROCUREMENT AUTHORITY.
    Section 1903(a) of title 41, United States Code, is amended--
        (1) by striking ``or'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting a semicolon; and
        (3) by adding after paragraph (2) the following new paragraphs:
        ``(3) in support of a request from the Secretary of State or 
    the Administrator of the United States Agency for International 
    Development to facilitate the provision of international disaster 
    assistance pursuant to chapter 9 of part I of the Foreign 
    Assistance Act of 1961 (22 U.S.C. 2292 et seq.); or
        ``(4) in support of an emergency or major disaster (as those 
    terms are defined in section 102 of the Robert T. Stafford Disaster 
    Relief and Emergency Assistance Act (42 U.S.C. 5122)).''.
    SEC. 817. COMPLIANCE WITH DOMESTIC SOURCE REQUIREMENTS FOR FOOTWEAR 
      FURNISHED TO ENLISTED MEMBERS OF THE ARMED FORCES UPON THEIR 
      INITIAL ENTRY INTO THE ARMED FORCES.
    Section 418 of title 37, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) In the case of athletic footwear needed by members of the 
Army, Navy, Air Force, or Marine Corps upon their initial entry into 
the armed forces, the Secretary of Defense shall furnish such footwear 
directly to the members instead of providing a cash allowance to the 
members for the purchase of such footwear.
    ``(2) In procuring athletic footwear to comply with paragraph (1), 
the Secretary of Defense shall--
        ``(A) procure athletic footwear that complies with the 
    requirements of section 2533a of title 10, without regard to the 
    applicability of any simplified acquisition threshold under chapter 
    137 of title 10 (or any other provision of law); and
        ``(B) procure additional athletic footwear, for two years 
    following the date of the enactment of the National Defense 
    Authorization Act for Fiscal Year 2017, that is necessary to 
    provide a member described in paragraph (1) with sufficient choices 
    in athletic shoes so as to minimize the incidence of athletic 
    injuries and potential unnecessary harm and risk to the safety and 
    well-being of members in initial entry training.
    ``(3) This subsection does not prohibit the provision of a cash 
allowance to a member described in paragraph (1) for the purchase of 
athletic footwear if such footwear--
        ``(A) is medically required to meet unique physiological needs 
    of the member; and
        ``(B) cannot be met with athletic footwear that complies with 
    the requirements of this subsection.''.
    SEC. 818. EXTENSION OF AUTHORITY FOR ENHANCED TRANSFER OF 
      TECHNOLOGY DEVELOPED AT DEPARTMENT OF DEFENSE LABORATORIES.
    Section 801(e) of the National Defense Authorization Act for Fiscal 
Year 2014 (Public Law 113-66; 127 Stat. 804; 10 U.S.C. 2514 note) is 
amended by striking ``2017'' and inserting ``2021''.
    SEC. 819. MODIFIED NOTIFICATION REQUIREMENT FOR EXERCISE OF WAIVER 
      AUTHORITY TO ACQUIRE VITAL NATIONAL SECURITY CAPABILITIES.
    Subsection (d) of section 806 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note) is 
amended to read as follows:
    ``(d) Notification Requirement.--Not later than 10 days after 
exercising the waiver authority under subsection (a), the Secretary of 
Defense shall provide a written notification to Congress providing the 
details of the waiver and the expected benefits it provides to the 
Department of Defense.''.
    SEC. 820. DEFENSE COST ACCOUNTING STANDARDS.
    (a) Amendments to the Cost Accounting Standards Board.--
        (1) In general.--Section 1501 of title 41, United States Code, 
    is amended--
            (A) in subsection (b)(1)(B)(ii), by inserting ``and, if 
        possible, is a representative of a public accounting firm'' 
        after ``systems'';
            (B) by redesignating subsections (c) through (f) as 
        subsections (f) through (i), respectively;
            (C) by inserting after subsection (b) the following new 
        subsections:
    ``(c) Duties.--The Board shall--
        ``(1) ensure that the cost accounting standards used by Federal 
    contractors rely, to the maximum extent practicable, on commercial 
    standards and accounting practices and systems;
        ``(2) within one year after the date of enactment of this 
    subsection, and on an ongoing basis thereafter, review any cost 
    accounting standards established under section 1502 of this title 
    and conform such standards, where practicable, to Generally 
    Accepted Accounting Principles; and
        ``(3) annually review disputes involving such standards brought 
    to the boards established in section 7105 of this title or Federal 
    courts, and consider whether greater clarity in such standards 
    could avoid such disputes.
    ``(d) Meetings.--The Board shall meet not less than once each 
quarter and shall publish in the Federal Register notice of each 
meeting and its agenda before such meeting is held.
    ``(e) Report.--The Board shall annually submit a report to the 
congressional defense committees, the Committee on Oversight and 
Government Reform of the House of Representatives, and the Committee on 
Homeland Security and Governmental Affairs of the Senate describing the 
actions taken during the prior year--
        ``(1) to conform the cost accounting standards established 
    under section 1502 of this title with Generally Accepted Accounting 
    Principles; and
        ``(2) to minimize the burden on contractors while protecting 
    the interests of the Federal Government.''; and
            (D) by amending subsection (f) (as so redesignated) to read 
        as follows:
    ``(f) Senior Staff.--The Administrator, after consultation with the 
Board--
        ``(1) without regard to the provisions of title 5 governing 
    appointments in the competitive service--
            ``(A) shall appoint an executive secretary; and
            ``(B) may appoint, or detail pursuant to section 3341 of 
        title 5, two additional staff members; and
        ``(2) may pay those employees without regard to the provisions 
    of chapter 51 and subchapter III of chapter 53 of title 5 relating 
    to classification and General Schedule pay rates, except that those 
    employees may not receive pay in excess of the maximum rate of 
    basic pay payable for level IV of the Executive Schedule.''.
        (2) Value of contracts eligible for waiver.--Section 
    1502(b)(3)(A) of title 41, United States Code, is amended by 
    striking ``$15,000,000'' and inserting ``$100,000,000''.
        (3) Conforming amendments.--Section 1501(i) of title 41, United 
    States Code (as redesignated by paragraph (1)), is amended--
            (A) in paragraph (1), by striking ``subsection (e)(1)'' and 
        inserting ``subsection (h)(1)''; and
            (B) in paragraph (3), by striking ``subsection (e)(2)'' and 
        inserting ``subsection (h)(2)''.
    (b) Defense Cost Accounting Standards Board.--
        (1) In general.--Chapter 7 of title 10, United States Code, is 
    amended by adding at the end the following new section:
``Sec. 190. Defense Cost Accounting Standards Board
    ``(a) Organization.--The Defense Cost Accounting Standards Board is 
an independent board in the Office of the Secretary of Defense.
    ``(b) Membership.--(1) The Board consists of seven members. One 
member is the Chief Financial Officer of the Department of Defense or a 
designee of the Chief Financial Officer, who serves as Chairman. The 
other six members, all of whom shall have experience in contract 
pricing, finance, or cost accounting, are as follows:
        ``(A) Three representatives of the Department of Defense 
    appointed by the Secretary of Defense; and
        ``(B) Three individuals from the private sector, each of whom 
    is appointed by the Secretary of Defense, and--
            ``(i) one of whom is a representative of a nontraditional 
        defense contractor (as defined in section 2302(9) of this 
        title); and
            ``(ii) one of whom is a representative from a public 
        accounting firm.
    ``(2) A member appointed under paragraph (1)(A) may not continue to 
serve after ceasing to be an officer or employee of the Department of 
Defense.
    ``(c) Duties of the Chairman.--The Chief Financial Officer of the 
Department of Defense, after consultation with the Defense Cost 
Accounting Standards Board, shall prescribe rules and procedures 
governing actions of the Board under this section.
    ``(d) Duties.--The Defense Cost Accounting Standards Board--
        ``(1) shall review cost accounting standards established under 
    section 1502 of title 41 and recommend changes to such cost 
    accounting standards to the Cost Accounting Standards Board 
    established under section 1501 of such title;
        ``(2) has exclusive authority, with respect to the Department 
    of Defense, to implement such cost accounting standards to achieve 
    uniformity and consistency in the standards governing measurement, 
    assignment, and allocation of costs to contracts with the 
    Department of Defense; and
        ``(3) shall develop standards to ensure that commercial 
    operations performed by Government employees at the Department of 
    Defense adhere to cost accounting standards (based on cost 
    accounting standards established under section 1502 of title 41 or 
    Generally Accepted Accounting Principles) that inform managerial 
    decisionmaking.
    ``(e) Compensation.--(1) Members of the Defense Cost Accounting 
Standards Board who are officers or employees of the Department of 
Defense shall not receive additional compensation for services but 
shall continue to be compensated by the Department of Defense.
    ``(2) Each member of the Board appointed from the private sector 
shall receive compensation at a rate not to exceed the daily equivalent 
of the rate for level IV of the Executive Schedule for each day 
(including travel time) in which the member is engaged in the actual 
performance of duties vested in the Board.
    ``(3) While serving away from home or regular place of business, 
Board members and other individuals serving on an intermittent basis 
shall be allowed travel expenses in accordance with section 5703 of 
title 5.
    ``(f) Auditing Requirements.--(1) Notwithstanding any other 
provision of law, contractors with the Department of Defense may 
present, and the Defense Contract Audit Agency shall accept without 
performing additional audits, a summary of audit findings prepared by a 
commercial auditor if--
        ``(A) the auditor previously performed an audit of the 
    allowability, measurement, assignment to accounting periods, and 
    allocation of indirect costs of the contractor; and
        ``(B) such audit was performed using relevant commercial 
    accounting standards (such as Generally Accepted Accounting 
    Principles) and relevant commercial auditing standards established 
    by the commercial auditing industry for the relevant accounting 
    period.
    ``(2) The Defense Contract Audit Agency may audit direct costs of 
Department of Defense cost contracts and shall rely on commercial 
audits of indirect costs without performing additional audits, except 
that in the case of companies or business units that have a 
predominance of cost-type contracts as a percentage of sales, the 
Defense Contract Audit Agency may audit both direct and indirect 
costs.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 7 of such title is amended by adding after the item 
    relating to section 189 the following new item:

``190. Defense Cost Accounting Standards Board.''.

    (c) Report.--Not later than December 31, 2019, the Comptroller 
General of the United States shall submit to the congressional defense 
committees a report on the adequacy of the method used by the Cost 
Accounting Standards Board established under section 1501 of title 41, 
United States Code, to apply cost accounting standards to indirect and 
fixed price incentive contracts.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2018.
    SEC. 821. INCREASED MICRO-PURCHASE THRESHOLD APPLICABLE TO 
      DEPARTMENT OF DEFENSE PROCUREMENTS.
    (a) Increased Micro-purchase Threshold.--Chapter 137 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2338. Micro-purchase threshold
    ``Notwithstanding subsection (a) of section 1902 of title 41, the 
micro-purchase threshold for the Department of Defense for purposes of 
such section is $5,000.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2338. Micro-purchase threshold.''.
    SEC. 822. ENHANCED COMPETITION REQUIREMENTS.
    Section 2306a of title 10, United States Code, is amended--
        (1) in subsection (a)(1)(A), by inserting ``that is only 
    expected to receive one bid'' after ``entered into using procedures 
    other than sealed-bid procedures''; and
        (2) in subsection (b)--
            (A) in paragraph (1)(A)(i), by striking ``price 
        competition'' and inserting ``competition that results in at 
        least two or more responsive and viable competing bids''; and
            (B) by adding at the end the following new paragraph:
        ``(6) Determination by prime contractor.--A prime contractor 
    required to submit certified cost or pricing data under subsection 
    (a) with respect to a prime contract shall be responsible for 
    determining whether a subcontract under such contract qualifies for 
    an exception under paragraph (1)(A) from such requirement.''.
    SEC. 823. REVISION TO EFFECTIVE DATE OF SENIOR EXECUTIVE BENCHMARK 
      COMPENSATION FOR ALLOWABLE COST LIMITATIONS.
    (a) Repeal of Retroactive Applicability.--Section 803(c) of the 
National Defense Authorization Act for Fiscal Year 2012 (Public Law 
112-81; 125 Stat. 1485; 10 U.S.C. 2324 note) is amended by striking 
``amendments made by'' and all that follows and inserting ``amendments 
made by this section shall apply with respect to costs of compensation 
incurred after January 1, 2012, under contracts entered into on or 
after December 31, 2011.''.
    (b) Applicability.--The amendment made by subsection (a) shall take 
effect as of December 31, 2011, and shall apply as if included in the 
National Defense Authorization Act for Fiscal Year 2012 as enacted.
    SEC. 824. TREATMENT OF INDEPENDENT RESEARCH AND DEVELOPMENT COSTS 
      ON CERTAIN CONTRACTS.
    (a) Independent Research and Development Costs: Allowable Costs.--
        (1) In general.--Section 2372 of title 10, United States Code, 
    is amended to read as follows:
``Sec. 2372. Independent research and development costs: allowable 
    costs
    ``(a) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the payment by the Department of Defense of 
expenses incurred by contractors for independent research and 
development costs. Such regulations shall provide that expenses 
incurred for independent research and development shall be reported 
independently from other allowable indirect costs.
    ``(b) Costs Treated as Fair and Reasonable, and Allowable, 
Expenses.--The regulations prescribed under subsection (a) shall 
provide that independent research and development costs shall be 
considered a fair and reasonable, and allowable, indirect expense on 
Department of Defense contracts.
    ``(c) Additional Controls.--Subject to subsection (d), the 
regulations prescribed under subsection (a) may include the following 
provisions:
        ``(1) Controls on the reimbursement of costs to the contractor 
    for expenses incurred for independent research and development to 
    ensure that such costs were incurred for independent research and 
    development.
        ``(2) Implementation of regular methods for transmission--
            ``(A) from the Department of Defense to contractors, in a 
        reasonable manner, of timely and comprehensive information 
        regarding planned or expected needs of the Department of 
        Defense for future technology and advanced capability; and
            ``(B) from contractors to the Department of Defense, in a 
        reasonable manner, of information regarding progress by the 
        contractor on the independent research and development programs 
        of the contractor.
    ``(d) Limitations on Regulations.--Regulations prescribed under 
subsection (a) may not include provisions that would infringe on the 
independence of a contractor to choose which technologies to pursue in 
its independent research and development program if the chief executive 
officer of the contractor determines that expenditures will advance the 
needs of the Department of Defense for future technology and advanced 
capability as transmitted pursuant to subsection (c)(3)(A).
    ``(e) Effective Date.--The regulations prescribed under subsection 
(a) shall apply to indirect costs incurred on or after October 1, 
2017.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 139 is amended by striking the item relating to section 
    2372 and inserting the following new item:

``2372. Independent research and development costs: allowable costs''.

    (b) Bid and Proposal Costs: Allowable Costs.--
        (1) In general.--Chapter 139 of title 10, United States Code, 
    is amended by inserting after section 2372 the following new 
    section:
``Sec. 2372a. Bid and proposal costs: allowable costs
    ``(a) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the payment by the Department of Defense of 
expenses incurred by contractors for bid and proposal costs. Such 
regulations shall provide that expenses incurred for bid and proposal 
costs shall be reported independently from other allowable indirect 
costs.
    ``(b) Costs Allowable as Indirect Expenses.--The regulations 
prescribed under subsection (a) shall provide that bid and proposal 
costs shall be allowable as indirect expenses on covered contracts, as 
defined in section 2324(l) of this title, to the extent that those 
costs are allocable, reasonable, and not otherwise unallowable by law 
or under the Federal Acquisition Regulation.
    ``(c) Goal for Reimbursable Bid and Proposal Costs.--The Secretary 
shall establish a goal each fiscal year limiting the amount of 
reimbursable bid and proposal costs paid by the Department of Defense 
to an amount equal to not more than one percent of the total aggregate 
industry sales to the Department of Defense. To achieve such goal, the 
Secretary may not limit the payment of allowable bid and proposal costs 
for the covered year.
    ``(d) Panel.--(1) If the Department of Defense exceeds the goal 
established under subsection (c) for a fiscal year, within 180 days 
after exceeding the goal, the Secretary shall establish an advisory 
panel. The panel shall be supported by the Defense Acquisition 
University and the National Defense University, including 
administrative support.
    ``(2) The panel shall be composed of nine individuals who are 
recognized experts in acquisition and procurement policy appointed by 
the Secretary. In making such appointments, the Secretary shall ensure 
that the members of the panel reflect diverse experiences in the public 
and private sector.
    ``(3) The panel shall review laws, regulations, and practices that 
contribute to the expenses incurred by contractors for bids and 
proposals in the fiscal year concerned and recommend changes to such 
laws, regulations, and practices that may reduce expenses incurred by 
contractors for bids and proposals.
    ``(4)(A) Not later than six months after the establishment of the 
panel, the panel shall submit to the Secretary and the congressional 
defense committees an interim report on the findings of the panel.
        ``(B) Not later than one year after the establishment of the 
    panel, the panel shall submit to the Secretary and the 
    congressional defense committees a final report on the findings of 
    the panel.
    ``(5) The panel shall terminate on the day the panel submits the 
final report under paragraph (4)(B).
    ``(6) The Secretary of Defense may use amounts available in the 
Department of Defense Acquisition Workforce Development Fund 
established under section 1705 of this title to support the activities 
of the panel established under this subsection.
    ``(e) Effective Date.--The regulations prescribed under subsection 
(a) shall apply to indirect costs incurred on or after October 1, 
2017.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 139 of such title is amended by inserting the following 
    new item:

``2372a. Bid and proposal costs: allowable costs''.

    (c) Report on Elements Contributing to Expenses Incurred by 
Contractors for Bids and Proposals.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the Secretary of Defense shall enter into a 
    contract with an independent entity to study the laws, regulations, 
    and practices relating to expenses incurred by contractors for bids 
    and proposals.
        (2) Report.--Not later than 180 days after receipt of the 
    contract required by paragraph (1), the independent entity shall 
    submit to the Department of Defense and the congressional defense 
    committees a report on the laws, regulations, or practices relating 
    to expenses incurred by contractors for bids and recommendations 
    for changes to such laws, regulations, or practices that may reduce 
    expenses incurred by contractors for bids and proposals.
    (d) Defense Contract Audit Agency: Annual Report.--
        (1) In general.--Subsection (a) of section 2313a of title 10, 
    United States Code, is amended--
            (A) by redesignating paragraphs (4) and (5) as paragraphs 
        (6) and (7), respectively; and
            (B) by inserting after paragraph (3) the following new 
        paragraphs:
        ``(3) a summary, set forth separately by dollar amount and 
    percentage, of indirect costs for independent research and 
    development incurred by contractors in the previous fiscal year;
        ``(4) a summary, set forth separately by dollar amount and 
    percentage, of indirect costs for bid and proposal costs incurred 
    by contractors in the previous fiscal year;''.
        (2) Effective date.--The amendments made by this subsection 
    shall take effect on October 1, 2018.
    SEC. 825. EXCEPTION TO REQUIREMENT TO INCLUDE COST OR PRICE TO THE 
      GOVERNMENT AS A FACTOR IN THE EVALUATION OF PROPOSALS FOR CERTAIN 
      MULTIPLE-AWARD TASK OR DELIVERY ORDER CONTRACTS.
    (a) Exception to Requirement to Include Cost or Price as Factor.--
Section 2305(a)(3) of title 10, United States Code, is amended--
        (1) in subparagraph (A)--
            (A) in clause (i), by inserting ``(except as provided in 
        subparagraph (C))'' after ``shall''; and
            (B) in clause (ii), by inserting ``(except as provided in 
        subparagraph (C))'' after ``shall''; and
        (2) by adding at the end the following new subparagraphs:
        ``(C) If the head of an agency issues a solicitation for 
    multiple task or delivery order contracts under section 
    2304a(d)(1)(B) of this title for the same or similar services and 
    intends to make a contract award to each qualifying offeror--
            ``(i) cost or price to the Federal Government need not, at 
        the Government's discretion, be considered under clause (ii) of 
        subparagraph (A) as an evaluation factor for the contract 
        award; and
            ``(ii) if, pursuant to clause (i), cost or price to the 
        Federal Government is not considered as an evaluation factor 
        for the contract award--
                ``(I) the disclosure requirement of clause (iii) of 
            subparagraph (A) shall not apply; and
                ``(II) cost or price to the Federal Government shall be 
            considered in conjunction with the issuance pursuant to 
            section 2304c(b) of this title of a task or delivery order 
            under any contract resulting from the solicitation.
        ``(D) In subparagraph (C), the term `qualifying offeror' means 
    an offeror that--
            ``(i) is determined to be a responsible source;
            ``(ii) submits a proposal that conforms to the requirements 
        of the solicitation; and
            ``(iii) the contracting officer has no reason to believe 
        would likely offer other than fair and reasonable pricing.
        ``(E) Subparagraph (C) shall not apply to multiple task or 
    delivery order contracts if the solicitation provides for sole 
    source task or delivery order contracts pursuant to section 8(a) of 
    the Small Business Act (15 U.S.C. 637(a)).''.
    (b) Amendment to Procedures Relating to Orders Under Multiple-award 
Contracts.--Section 2304c(b) of title 10, United States Code, is 
amended--
        (1) in paragraph (3), by striking ``or'' at the end;
        (2) in paragraph (4), by striking the period at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following new paragraph:
        ``(5) the task or delivery order satisfies one of the 
    exceptions in section 2304(c) of this title to the requirement to 
    use competitive procedures.''.
    SEC. 826. EXTENSION OF PROGRAM FOR COMPREHENSIVE SMALL BUSINESS 
      CONTRACTING PLANS.
    Section 834(e) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (15 U.S.C. 637 note) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2027''.
    SEC. 827. TREATMENT OF SIDE-BY-SIDE TESTING OF CERTAIN EQUIPMENT, 
      MUNITIONS, AND TECHNOLOGIES MANUFACTURED AND DEVELOPED UNDER 
      COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS AS USE OF 
      COMPETITIVE PROCEDURES.
    Section 2350a(g) of title 10, United States Code, is amended by 
inserting after paragraph (2) the following new paragraph:
    ``(3) The use of side-by-side testing under this subsection may be 
considered to be the use of competitive procedures for purposes of 
chapter 137 of this title, when procuring items within 5 years after an 
initial determination that the items have been successfully tested and 
found to satisfy United States military requirements or to correct 
operational deficiencies.''.
    SEC. 828. DEFENSE ACQUISITION CHALLENGE PROGRAM AMENDMENTS.
    (a) Expansion of Scope To Include Systems-of-systems and 
Functions.--Paragraph (2) of subsection (a) of section 2359b of title 
10, United States Code, is amended by striking ``or system'' and all 
that follows through the end of the paragraph and inserting the 
following: ``system, or system-of-systems level of an existing 
Department of Defense acquisition program, or to address any broader 
functional challenge to Department of Defense missions that may not 
fall within an acquisition program, that would result in improvements 
in performance, affordability, manufacturability, or operational 
capability of that acquisition program or function.''.
    (b) Treatment of Challenge Proposal Procedures as Use of 
Competitive Procedures.--Such section is further amended--
        (1) by redesignating subsections (j) and (k) as subsections (k) 
    and (l), respectively; and
        (2) by inserting after subsection (i) the following new 
    subsection:
    ``(j) Treatment of Use of Certain Procedures as Use of Competitive 
Procedures.--The use of general solicitation competitive procedures 
established under subsection (c) shall be considered to be the use of 
competitive procedures for purposes of chapter 137 of this title.''.
    (c) Extension of Sunset for Pilot Program for Programs Other Than 
Major Defense Acquisition Programs.--Such section is further amended in 
paragraph (5) of subsection (l), as redesignated by subsection (b)(1) 
of this subsection, by striking ``2016'' and inserting ``2021''.
    (d) Conforming Amendments.--Such section is further amended--
        (1) in subsection (c)(3), by inserting ``or functions'' after 
    ``acquisition programs'';
        (2) in subsection (c)(4)(A)--
            (A) by striking ``and'' at the end of clause (i);
            (B) by striking the period at the end of clause (ii) and 
        inserting ``; and''; and
            (C) by adding at the end the following new clause:
        ``(iii) any functional challenges of importance to Department 
    of Defense missions.'';
        (3) in subsection (c)(5), by adding at the end the following 
    new subparagraph:
            ``(D) Whether the challenge proposal is likely to result in 
        improvements to any functional challenges of importance to 
        Department of Defense missions, and whether the proposal could 
        be implemented rapidly, at an acceptable cost, and without 
        unacceptable disruption to such missions.''; and
        (4) in subsection (c)(5)(B) and in subsection (e)(1), by 
    striking ``or system'' and inserting ``system, or system-of-
    systems''.
    SEC. 829. PREFERENCE FOR FIXED-PRICE CONTRACTS.
    (a) Establishment of Preference.--Not later than 180 days after the 
date of the enactment of this Act, the Defense Federal Acquisition 
Regulation Supplement shall be revised to establish a preference for 
fixed-price contracts, including fixed-price incentive fee contracts, 
in the determination of contract type.
    (b) Approval Requirement for Certain Cost-type Contracts.--
        (1) In general.--A contracting officer of the Department of 
    Defense may not enter into a cost-type contract described in 
    paragraph (2) unless the contract is approved by the service 
    acquisition executive of the military department concerned, the 
    head of the Defense Agency concerned, the commander of the 
    combatant command concerned, or the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics (as applicable).
        (2) Covered contracts.--A contract described in this paragraph 
    is--
            (A) a cost-type contract in excess of $50,000,000, in the 
        case of a contract entered into on or after October 1, 2018, 
        and before October 1, 2019; and
            (B) a cost-type contract in excess of $25,000,000, in the 
        case of a contract entered into on or after October 1, 2019.
    SEC. 830. REQUIREMENT TO USE FIRM FIXED-PRICE CONTRACTS FOR FOREIGN 
      MILITARY SALES.
    (a) Requirement.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe 
regulations to require the use of firm fixed-price contracts for 
foreign military sales.
    (b) Exceptions.--The regulations prescribed pursuant to subsection 
(a) shall include exceptions that may be exercised if the foreign 
country that is the counterparty to a foreign military sale--
        (1) has established in writing a preference for a different 
    contract type; or
        (2) requests in writing that a different contract type be used 
    for a specific foreign military sale.
    (c) Waiver Authority.--The regulations prescribed pursuant to 
subsection (a) shall include a waiver that may be exercised by the 
Secretary of Defense or his designee if the Secretary or his designee 
determines on a case-by-case basis that a different contract type is in 
the best interest of the United States and American taxpayers.
    (d) Pilot Program for Acceleration of Foreign Military Sales.--
        (1) In general.--The Secretary of Defense shall establish a 
    pilot program to reform and accelerate the contracting and pricing 
    processes associated with full rate production of major weapon 
    systems for no more than 10 foreign military sales contracts by--
            (A) basing price reasonableness determinations on actual 
        cost and pricing data for purchases of the same product for the 
        Department of Defense; and
            (B) reducing the cost and pricing data to be submitted in 
        accordance with section 2306a of title 10, United States Code.
        (2) Expiration of authority.--Authority for the pilot program 
    under this subsection expires on January 1, 2020.
    SEC. 831. PREFERENCE FOR PERFORMANCE-BASED CONTRACT PAYMENTS.
    (a) In General.--Section 2307(b) of title 10, United States Code, 
is amended--
        (1) in the subsection heading, by inserting ``Preference for'' 
    before ``Performance-based'';
        (2) by redesignating paragraphs (1), (2), and (3) as 
    subparagraphs (A), (B), and (C), respectively;
        (3) by striking ``Wherever practicable, payment under 
    subsection (a) shall be made'' and inserting ``(1) Whenever 
    practicable, payments under subsection (a) shall be made using 
    performance-based payments''; and
        (4) by adding at the end the following new paragraphs:
    ``(2) Performance-based payments shall not be conditioned upon 
costs incurred in contract performance but on the achievement of 
performance outcomes listed in paragraph (1).
    ``(3) The Secretary of Defense shall ensure that nontraditional 
defense contractors and other private sector companies are eligible for 
performance-based payments, consistent with best commercial practices.
    ``(4)(A) In order to receive performance-based payments, a 
contractor's accounting system shall be in compliance with Generally 
Accepted Accounting Principles, and there shall be no requirement for a 
contractor to develop Government-unique accounting systems or practices 
as a prerequisite for agreeing to receive performance-based payments.
    ``(B) Nothing in this section shall be construed to grant the 
Defense Contract Audit Agency the authority to audit compliance with 
Generally Accepted Accounting Principles.''.
    (b) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall revise the 
Department of Defense Federal Acquisition Regulation Supplement to 
conform with section 2307(b) of title 10, United States Code, as 
amended by subsection (a).
    SEC. 832. CONTRACTOR INCENTIVES TO ACHIEVE SAVINGS AND IMPROVE 
      MISSION PERFORMANCE.
    Not later than 180 days after the date of the enactment of this 
Act, the Defense Acquisition University shall develop and implement a 
training program for Department of Defense acquisition personnel on 
fixed-priced incentive fee contracts, public-private partnerships, 
performance-based contracting, and other authorities in law and 
regulation designed to give incentives to contractors to achieve long-
term savings and improve administrative practices and mission 
performance.
    SEC. 833. SUNSET AND REPEAL OF CERTAIN CONTRACTING PROVISIONS.
    (a) Sunsets.--
        (1) Plantations and farms: operation, maintenance, and 
    improvement.--Section 2421 of title 10, United States Code, is 
    amended by adding at the end the following new subsection:
    ``(e) Sunset.--The authority under this section shall terminate on 
September 30, 2018.''.
        (2) Requirement to establish cost, performance, and schedule 
    goals for major defense acquisition programs and each phase of 
    related acquisition cycles.--Section 2220 of title 10, United 
    States Code, is amended by adding at the end the following new 
    subsection:
    ``(c) Sunset.--The authority under this section shall terminate on 
September 30, 2018.''.
    (b) Repeals.--
        (1) Limitation on use of operation and maintenance funds for 
    purchase of investment items.--
            (A) In general.--Section 2245a of title 10, United States 
        Code, is repealed.
            (B) Clerical amendment.--The table of sections at the 
        beginning of subchapter I of chapter 134 of such title is 
        amended by striking the item relating to section 2245a.
            (C) Conforming amendment.--Section 166a(e)(1)(A) of such 
        title is amended by striking ``the investment unit cost 
        threshold in effect under section 2245a of this title'' and 
        inserting ``$250,000''.
        (2) Information technology purchases: tracking and 
    management.--
            (A) In general.--Section 2225 of title 10, United States 
        Code, is repealed.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 131 of such title is amended by striking 
        the item relating to section 2225.
            (C) Conforming amendments.--
                (i) Section 812 of the Floyd D. Spence National Defense 
            Authorization Act for Fiscal Year 2001 (Public Law 106-393; 
            114 Stat. 1654A-213; 10 U.S.C. 2225 note) is amended by 
            striking subsections (b) and (c).
                (ii) Section 2330a(j) of title 10, United States Code, 
            is amended--

                    (I) by striking paragraph (2);
                    (II) by redesignating paragraphs (3), (4), and (5) 
                as paragraphs (2), (3), and (4), respectively; and
                    (III) by adding at the end the following new 
                paragraphs:

        ``(5) Simplified acquisition threshold.--The term `simplified 
    acquisition threshold' has the meaning given the term in section 
    134 of title 41.
        ``(6) Small business act definitions.--
            ``(A) The term `small business concern' has the meaning 
        given such term under section 3 of the Small Business Act (15 
        U.S.C. 632).
            ``(B) The terms `small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals' and `small business concern owned and controlled 
        by women' have the meanings given such terms, respectively, in 
        section 8(d)(3) of the Small Business Act (15 U.S.C. 
        637(d)(3)).''.
                (iii) Section 222(d) of the National Defense 
            Authorization Act for Fiscal Year 2012 (Public Law 112-81; 
            10 U.S.C. 2358 note) is amended by striking ``as defined in 
            section 2225(f)(3)'' and inserting ``as defined in section 
            2330a(j)''.
        (3) Procurement of copier paper containing specified 
    percentages of post-consumer recycled content.--
            (A) In general.--Section 2378 of title 10, United States 
        Code, is repealed.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 140 of such title is amended by striking 
        the item relating to section 2378.
        (4) Limitation on procurement of table and kitchen equipment 
    for officers' quarters.--
            (A) In general.--Section 2387 of title 10, United States 
        Code, is repealed.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by striking 
        the item relating to section 2387.
        (5) Implementation of electronic commerce capability.--
            (A) Repeal.--
                (i) Section 2302c of title 10, United States Code, is 
            repealed.
                (ii) Section 2301 of title 41, United States Code, is 
            amended by adding at the end the following new subsection:
    ``(f) Inapplicability to Department of Defense.--In this section, 
the term `executive agency' does not include the Department of 
Defense.''.
            (B) Clerical amendment.--The table of sections at the 
        beginning of chapter 137 of such title is amended by striking 
        the item relating to section 2302c.
    SEC. 834. FLEXIBILITY IN CONTRACTING AWARD PROGRAM.
    (a) Establishment of Award Program.--The Secretary of Defense shall 
create an award to recognize those acquisition programs and 
professionals that make the best use of the flexibilities and 
authorities granted by the Federal Acquisition Regulation and 
Department of Defense Instruction 5000.02 (Operation of the Defense 
Acquisition System).
    (b) Purpose of Award.--The award established under subsection (a) 
shall recognize outstanding performers whose approach to program 
management emphasizes innovation and local adaptation, including the 
use of--
        (1) simplified acquisition procedures;
        (2) inherent flexibilities within the Federal Acquisition 
    Regulation;
        (3) commercial contracting approaches;
        (4) public-private partnership agreements and practices;
        (5) cost-sharing arrangements;
        (6) innovative contractor incentive practices; and
        (7) other innovative implementations of acquisition 
    flexibilities.
    SEC. 835. PROTECTION OF TASK ORDER COMPETITION.
    (a) Amendment to Value of Authorized Task Order Protests.--Section 
2304c(e)(1)(B) of title 10, United States Code, is amended by striking 
``$10,000,000'' and inserting ``$25,000,000''.
    (b) Repeal of Effective Date.--Section 4106(f) of title 41, United 
States Code, is amended by striking paragraph (3).
    SEC. 836. CONTRACT CLOSEOUT AUTHORITY.
    (a) Authority.--The Secretary of Defense may close out a contract 
or group of contracts as described in subsection (b) through the 
issuance of one or more modifications to such contracts without 
completing a reconciliation audit or other corrective action. To 
accomplish closeout of such contracts--
        (1) remaining contract balances may be offset with balances in 
    other contract line items within a contract regardless of the year 
    or type of appropriation obligated to fund each contract line item 
    and regardless of whether the appropriation for such contract line 
    item has closed; and
        (2) remaining contract balances may be offset with balances on 
    other contracts regardless of the year or type of appropriation 
    obligated to fund each contract and regardless of whether the 
    appropriation has closed.
    (b) Covered Contracts.--This section covers any contract or group 
of contracts between the Department of Defense and a defense 
contractor, each one of which--
        (1) was entered into prior to fiscal year 2000;
        (2) has no further supplies or services deliverables due under 
    the terms and conditions of the contract; and
        (3) is determined by the Secretary of Defense to be not 
    otherwise reconcilable because--
            (A) the records have been destroyed or lost; or
            (B) the records are available but the Secretary of Defense 
        has determined that the time or effort required to determine 
        the exact amount owed to the United States Government or amount 
        owed to the contractor is disproportionate to the amount at 
        issue.
    (c) Negotiated Settlement Authority.--Any contract or group of 
contracts covered by this section may be closed out through a 
negotiated settlement with the contractor.
    (d) Waiver Authority.--
        (1) In general.--The Secretary of Defense is authorized to 
    waive any provision of acquisition law or regulation to carry out 
    the authority under subsection (a).
        (2) Notification requirement.--The Secretary of Defense shall 
    notify the congressional defense committees not later than 10 days 
    after exercising the authority under subsection (d). The notice 
    shall include an identification of each provision of law or 
    regulation waived.
    (e) Adjustment and Closure of Records.--After closeout of any 
contract described in subsection (b) using the authority under this 
section, the payment or accounting offices concerned may adjust and 
close any open finance and accounting records relating to the contract.
    (f) No Liability.--No liability shall attach to any accounting, 
certifying, or payment official, or any contracting officer, for any 
adjustments or closeout made pursuant to the authority under this 
section.
    (g) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of the authority under this section.
    SEC. 837. CLOSEOUT OF OLD DEPARTMENT OF THE NAVY CONTRACTS.
    (a) Authority.--The Secretary of the Navy may close out contracts 
described in subsection (b) through the issuance of one or more 
modifications to such contracts without completing further 
reconciliation audits or corrective actions other than those described 
in this section. To accomplish closeout of such contracts--
        (1) remaining contract balances may be offset with balances in 
    other contract line items within a contract regardless of the year 
    or type of appropriation obligated to fund each contract line item 
    and regardless of whether the appropriation for such contract line 
    item has closed; and
        (2) remaining contract balances may be offset with balances on 
    other contracts regardless of the year or type of appropriation 
    obligated to fund each contract and regardless of whether the 
    appropriation has closed.
    (b) Contracts Covered.--The contracts covered by this section are a 
group of contracts that are with one contractor and identified by the 
Secretary, each one of which is a contract--
        (1) to design, construct, repair, or support the construction 
    or repair of Navy submarines that--
            (A) was entered into between fiscal years 1974 and 1998; 
        and
            (B) has no further supply or services deliverables due 
        under the terms and conditions of the contract;
        (2) with respect to which the Secretary of the Navy has 
    established the total final contract value; and
        (3) with respect to which the Secretary of the Navy has 
    determined that the final allowable cost may have a negative or 
    positive unliquidated obligation balance for which it would be 
    difficult to determine the year or type of appropriation because--
            (A) the records for the contract have been destroyed or 
        lost; or
            (B) the records for the contract are available but the 
        contracting officer, in collaboration with the certifying 
        official, has determined that a discrepancy is of such a 
        minimal value that the time and effort required to determine 
        the cause of an out-of-balance condition is disproportionate to 
        the amount of the discrepancy.
    (c) Closeout Terms.--The contracts described in subsection (b) may 
be closed out--
        (1) upon receipt of $581,803 from the contractor to be 
    deposited into the Treasury as miscellaneous receipts;
        (2) without seeking further amounts from the contractor; and
        (3) without payment to the contractor of any amounts that may 
    be due under any such contracts.
    (d) Waiver Authority.--
        (1) In general.--The Secretary of the Navy is authorized to 
    waive any provision of acquisition law or regulation to carry out 
    the authority under subsection (a).
        (2) Notification requirement.--The Secretary of the Navy shall 
    notify the congressional defense committees not later than 10 days 
    after exercising the authority under paragraph (1). The notice 
    shall include an identification of each provision of law or 
    regulation waived.
    (e) Adjustment and Closure of Records.--After closeout of any 
contract described in subsection (b) using the authority under this 
section, the payment or accounting offices concerned may adjust and 
close any open finance and accounting records relating to the contract.
    (f) No Liability.--No liability shall attach to any accounting, 
certifying, or payment official or contracting officer for any 
adjustments or closeout made pursuant to the authority under this 
section.
    (g) Expiration of Authority.--The authority under this section 
shall expire upon receipt of the funds identified in subsection (c)(1).

 Subtitle D--Provisions Relating to Major Defense Acquisition Programs

    SEC. 841. CHANGE IN DATE OF SUBMISSION TO CONGRESS OF SELECTED 
      ACQUISITION REPORTS.
    Section 2432(f) of title 10, United States Code, is amended by 
striking ``45'' the first place it occurs and inserting ``30''.
    SEC. 842. AMENDMENTS RELATING TO INDEPENDENT COST ESTIMATION AND 
      COST ANALYSIS.
    (a) Amendments.--Section 2334 of title 10, United States Code, is 
amended--
        (1) in subsection (a)(3), by striking ``selection of confidence 
    levels'' both places it appears and inserting ``discussion of 
    risk'';
        (2) in subsection (a)(6)--
            (A) by inserting ``or approve'' after ``conduct'';
            (B) by striking ``major defense acquisition programs'' and 
        all that follows through ``Authority--'' and inserting ``all 
        major defense acquisition programs and major subprograms--''; 
        and
            (C) in subparagraph (B), by striking ``or upon the 
        request'' and all that follows through the semicolon at the end 
        and inserting ``, upon the request of the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, or upon the 
        request of the milestone decision authority'';
        (3) by redesignating subsections (b), (c), (d), (e), and (f) as 
    subsections (c), (d), (e), (f), and (h), respectively;
        (4) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Independent Cost Estimate Required Before Approval.--(1) A 
milestone decision authority may not approve entering a milestone phase 
of a major defense acquisition program or major subprogram unless an 
independent cost estimate has been conducted or approved by the 
Director of Cost Assessment and Program Evaluation and considered by 
the milestone decision authority that--
        ``(A) for the technology maturation and risk reduction phase, 
    includes the identification and sensitivity analysis of key cost 
    drivers that may affect life-cycle costs of the program or 
    subprogram; and
        ``(B) for the engineering and manufacturing development phase, 
    or production and deployment phase, includes a cost estimate of the 
    full life-cycle cost of the program or subprogram.
    ``(2) The regulations governing the content and submission of 
independent cost estimates required by subsection (a) shall require 
that the independent cost estimate of the full life-cycle cost of a 
program or subprogram include--
        ``(A) all costs of development, procurement, military 
    construction, operations and support, and trained manpower to 
    operate, maintain, and support the program or subprogram upon full 
    operational deployment, without regard to funding source or 
    management control; and
        ``(B) an analysis to support decisionmaking that identifies and 
    evaluates alternative courses of action that may reduce cost and 
    risk, and result in more affordable programs and less costly 
    systems.'';
        (5) in subsection (d), as so redesignated, in paragraph (3), by 
    striking ``confidence level'' and inserting ``discussion of risk'';
        (6) in subsection (e), as so redesignated--
            (A) by amending the subsection heading to read as follows: 
        ``Discussion of Risk in Cost Estimates.--'';
            (B) by amending paragraph (1) to read as follows:
        ``(1) issue guidance requiring a discussion of risk, the 
    potential impacts of risk on program costs, and approaches to 
    mitigate risk in cost estimates for major defense acquisition 
    programs and major subprograms;'';
            (C) in paragraph (2)--
                (i) by striking ``such confidence level provides'' and 
            inserting ``cost estimates are developed, to the extent 
            practicable, based on historical actual cost information 
            that is based on demonstrated contractor and Government 
            performance and that such estimates provide''; and
                (ii) by inserting ``or subprogram'' after ``the 
            program''; and
            (D) in paragraph (3), by striking ``disclosure required by 
        paragraph (1)'' and inserting ``information required in the 
        guidance under paragraph (1)''; and
        (7) by inserting after subsection (f), as so redesignated, the 
    following new subsection:
    ``(g) Guidelines and Collection of Cost Data.--(1) The Director of 
Cost Assessment and Program Evaluation shall, in consultation with the 
Under Secretary of Defense for Acquisition, Technology, and Logistics, 
develop policies, procedures, guidance, and a collection method to 
ensure that quality acquisition cost data are collected to facilitate 
cost estimation and comparison across acquisition programs.
    ``(2) The program manager and contracting officer for each 
acquisition program in an amount greater than $100,000,000, in 
consultation with the cost estimating component of the relevant 
military department or Defense Agency, shall ensure that cost data are 
collected in accordance with the requirements of paragraph (1).
    ``(3) The requirement under paragraph (1) may be waived only by the 
Director of Cost Assessment and Program Evaluation.''.
    (b) Conforming Amendments to Add Subprograms.--Section 2334 of such 
title is further amended--
        (1) in subsection (a)(2), by inserting ``or major subprogram'' 
    before ``under chapter 144'';
        (2) in paragraphs (3), (4), and (5) of subsection (a) and in 
    subsection (c)(1) (as redesignated by subsection (a) of this 
    section), by striking ``major defense acquisition programs and 
    major automated information system programs'' and inserting ``major 
    defense acquisition programs and major subprograms'' each place it 
    appears;
        (3) in paragraphs (1) and (2) of subsection (d) (as so 
    redesignated), and in subsection (f)(4) (as so redesignated), by 
    striking ``major defense acquisition program or major automated 
    information system program'' and inserting ``major defense 
    acquisition program or major subprogram'' each place it appears;
        (4) in subsection (d)(4) (as so redesignated), by inserting 
    before the period ``or major subprogram'';
        (5) in subsection (e)(3)(B) (as so redesignated), by inserting 
    ``or major subprogram'' after ``major defense acquisition 
    program''; and
        (6) in subsection (f)(3) (as so redesignated), by striking 
    ``major defense acquisition program and major automated information 
    system program'' and inserting ``major defense acquisition program 
    and major subprogram''.
    (c) Repeal.--Chapter 144 of such title is amended--
        (1) by striking section 2434; and
        (2) in the table of sections at the beginning of such chapter, 
    by striking the item relating to such section.
    SEC. 843. REVISIONS TO MILESTONE B DETERMINATIONS.
    Section 2366b(a)(3) of title 10, United States Code, is amended--
        (1) in subparagraph (B), by striking ``acquisition cost in'' 
    and all that follows through the semicolon, and inserting ``life-
    cycle cost;''; and
        (2) in subparagraph (D), by striking ``funding is'' and all 
    that follows through ``made,'' and inserting ``funding is expected 
    to be available to execute the product development and production 
    plan for the program,''.
    SEC. 844. REVIEW AND REPORT ON SUSTAINMENT PLANNING IN THE 
      ACQUISITION PROCESS.
    (a) Requirement for Review.--The Secretary of Defense shall conduct 
a review of the extent to which sustainment matters are considered in 
decisions related to the requirements, research and development, 
acquisition, cost estimating, and programming and budgeting processes 
for major defense acquisition programs. The review shall include the 
following:
        (1) A determination of whether information related to the 
    operation and sustainment of major defense acquisition programs, 
    including cost data and intellectual property requirements, is 
    available to inform decisions made during those processes.
        (2) If such information exists, an evaluation of the 
    completeness, timeliness, quality, and suitability of the 
    information for aiding in decisions made during those processes.
        (3) A determination of whether information related to the 
    operation and sustainment of existing major weapon systems is used 
    to forecast the operation and sustainment needs of major weapon 
    systems proposed for or under development.
        (4) A description of the potential benefits from improved 
    completeness, timeliness, quality, and suitability of data on 
    operation and support costs and increased consideration of such 
    data.
        (5) Recommendations for improving access to, analyses of, and 
    consideration of operation and support cost data.
        (6) An assessment of product support strategies for major 
    weapon systems required by section 2337 of title 10, United States 
    Code, or other similar life-cycle sustainment strategies, including 
    an evaluation of--
            (A) the stage at which such strategies are developed during 
        the life of a major weapon system;
            (B) the content and completeness of such strategies, 
        including whether such strategies address--
                (i) all aspects of total life-cycle management of a 
            major weapon system, including product support, logistics, 
            product support engineering, supply chain integration, 
            maintenance, and software sustainment; and
                (ii) the capabilities, capacity, and resource 
            constraints of the organic industrial base and the materiel 
            commands of the military department concerned;
            (C) the extent to which such strategies or their elements 
        are or should be incorporated into the acquisition strategy 
        required by section 2431a of title 10, United States Code;
            (D) the extent to which such strategies influence the 
        planning for major defense acquisition programs; and
            (E) the extent to which such strategies influence decisions 
        related to the life-cycle management and product support of 
        major weapon systems.
        (7) An assessment of how effectively the military departments 
    consider sustainment matters at key decision points for acquisition 
    and life-cycle management in accordance with the requirements of 
    sections 2431a, 2366a, 2366b, and 2337 of title 10, United States 
    Code, and section 832 of the National Defense Authorization Act for 
    Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 2430 note).
        (8) Recommendations for improving the consideration of 
    sustainment during the requirements, acquisition, cost estimating, 
    programming and budgeting processes.
        (9) An assessment of whether research and development efforts 
    and adoption of commercial technologies is prioritized to reduce 
    sustainment costs.
        (10) An assessment of whether alternate financing methods, 
    including share-in-savings approaches, public-private partnerships, 
    and energy savings performance contracts, could be used to 
    encourage the development and adoption of technologies and 
    practices that will reduce sustainment costs.
        (11) An assessment of private sector best practices in 
    assessing and reducing sustainment costs for complex systems.
    (b) Agreement With Independent Entity.--Not later than 60 days 
after the date of the enactment of this Act, the Secretary shall enter 
into an agreement with an independent entity with appropriate expertise 
to conduct the review required by subsection (a). The Secretary shall 
ensure that the independent entity has access to all data, information, 
and personnel required, and is funded, to satisfactorily complete the 
review required by subsection (a). The agreement also shall require the 
entity to provide to the Secretary a report on the findings of the 
entity.
    (c) Briefing.--Not later than April 1, 2017, the Secretary shall 
provide a briefing to the Committees on Armed Services of the Senate 
and House of Representatives on the preliminary findings of the 
independent entity.
    (d) Submission to Congress.--Not later than August 1, 2017, the 
Secretary shall submit to the congressional defense committees a copy 
of the report of the independent entity, along with comments on the 
report, proposed revisions or clarifications to laws related to 
lifecycle management or sustainment planning for major weapon systems, 
and a description of any actions the Secretary may take to revise or 
clarify regulations and practices related to life-cycle management or 
sustainment planning for major weapon systems.
    SEC. 845. REVISION TO DISTRIBUTION OF ANNUAL REPORT ON OPERATIONAL 
      TEST AND EVALUATION.
    Section 139(h) of title 10, United States Code, is amended--
        (1) in paragraph (2)--
            (A) by inserting ``the Secretaries of the military 
        departments,'' after ``Logistics,''; and
            (B) by striking ``10 days'' and all that follows through 
        ``title 31'' and inserting ``January 31 of each year, through 
        January 31, 2021''; and
        (2) in paragraph (5), by inserting after ``Secretary'' the 
    following: ``of Defense and the Secretaries of the military 
    departments''.
    SEC. 846. REPEAL OF MAJOR AUTOMATED INFORMATION SYSTEMS PROVISIONS.
    Effective September 30, 2017--
        (1) chapter 144A of title 10, United States Code, is repealed;
        (2) the tables of chapters at the beginning of subtitle A of 
    such title, and at the beginning of part IV of subtitle A, are 
    amended by striking the item relating to chapter 144A; and
        (3) section 2334(a)(2) of title 10, United States Code, is 
    amended by striking ``or a major automated information system under 
    chapter 144A of this title''.
    SEC. 847. REVISIONS TO DEFINITION OF MAJOR DEFENSE ACQUISITION 
      PROGRAM.
    (a) In General.--Section 2430 of title 10, United States Code, is 
amended in subsection (a)--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively;
        (2) by striking ``In this chapter'' and inserting ``(1) Except 
    as provided under paragraph (2), in this chapter''; and
        (3) by adding at the end the following new paragraph:
    ``(2) In this chapter, the term `major defense acquisition program' 
does not include an acquisition program or project that is carried out 
using the rapid fielding or rapid prototyping acquisition pathway under 
section 804 of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114-92; 10 U.S.C. 2302 note).''.
    (b) Annual Reporting.--The Secretary of Defense shall include in 
each comprehensive annual Selected Acquisition Report submitted under 
section 2432 of title 10, United States Code, a listing of all programs 
or projects being developed or procured under the exceptions to the 
definition of major defense acquisition program set forth in paragraph 
(2) of section 2430(a) of United States Code, as added by subsection 
(a)(1)(C) of this section.
    SEC. 848. ACQUISITION STRATEGY.
    Section 2431a of title 10, United States Code, is amended--
        (1) in subsection (b), by inserting ``, or the milestone 
    decision authority, when the milestone decision authority is the 
    service acquisition executive of the military department that is 
    managing the program,'' after ``the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics'';
        (2) in subsection (c)--
            (A) in paragraph (1), by inserting ``, or the milestone 
        decision authority, when the milestone decision authority is 
        the service acquisition executive of the military department 
        that is managing the program,'' after ``the Under Secretary''; 
        and
            (B) in paragraph (2)(C), by striking ``, in accordance with 
        section 2431b of this title''; and
        (3) in subsection (d)--
            (A) in paragraph (1), by striking ``(1) Subject to the 
        authority, direction, and control of the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, the'' and 
        inserting ``The''; and
            (B) in paragraph (2), by inserting ``because of a change 
        described in paragraph (1)(F)'' after ``for a program or 
        system''.
    SEC. 849. IMPROVED LIFE-CYCLE COST CONTROL.
    (a) Modified Guidance for Rapid Fielding Pathway.--Section 
804(c)(3) of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114-92; 10 U.S.C. 2302 note) is amended--
        (1) in subparagraph (C), by striking ``; and'' and inserting a 
    semicolon;
        (2) in subparagraph (D), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
            ``(E) a process for identifying and exploiting 
        opportunities to use the rapid fielding pathway to reduce total 
        ownership costs.''.
    (b) Life-cycle Cost Management.--Section 805(2) of such Act (Public 
Law 114-92; 10 U.S.C. 2302 note) is amended by inserting ``life-cycle 
cost management,'' after ``budgeting,''.
    (c) Sustainment Reviews.--
        (1) In general.--Chapter 144 of title 10, United States Code, 
    is amended by adding at the end the following new section:
``Sec. 2441. Sustainment reviews
    ``(a) In General.--The Secretary of each military department shall 
conduct a sustainment review of each major weapon system not later than 
five years after declaration of initial operational capability of a 
major defense acquisition program and throughout the life cycle of the 
weapon system to assess the product support strategy, performance, and 
operation and support costs of the weapon system. For any review after 
the first one, the Secretary concerned shall use availability and 
reliability thresholds and cost estimates as the basis for the 
circumstances that prompt such a review. The results of the sustainment 
review shall be documented in a memorandum by the relevant decision 
authority.
    ``(b) Elements.--At a minimum, the review required under subsection 
(a) shall include the following elements:
        ``(1) An independent cost estimate for the remainder of the 
    life cycle of the program.
        ``(2) A comparison of actual costs to the amount of funds 
    budgeted and appropriated in the previous five years, and if 
    funding shortfalls exist, an explanation of the implications on 
    equipment availability.
        ``(3) A comparison between the assumed and achieved system 
    reliabilities.
        ``(4) An analysis of the most cost-effective source of repairs 
    and maintenance.
        ``(5) An evaluation of the cost of consumables and depot-level 
    repairables.
        ``(6) An evaluation of the costs of information technology, 
    networks, computer hardware, and software maintenance and upgrades.
        ``(7) As applicable, an assessment of the actual fuel 
    efficiencies compared to the projected fuel efficiencies as 
    demonstrated in tests or operations.
        ``(8) As applicable, a comparison of actual manpower 
    requirements to previous estimates.
        ``(9) An analysis of whether accurate and complete data are 
    being reported in the cost systems of the military department 
    concerned, and if deficiencies exist, a plan to update the data and 
    ensure accurate and complete data are submitted in the future.
    ``(c) Coordination.--The review required under subsection (a) shall 
be conducted in coordination with the requirements of section 2337 of 
this title and section 832 of the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112-81; 10 U.S.C. 2430 note).''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by adding at the end the following new 
    item:

``2441. Sustainment reviews.''.

    (d) Commercial Operational and Support Savings Initiative.--
        (1) In general.--The Secretary of Defense may establish a 
    commercial operational and support savings initiative to improve 
    readiness and reduce operations and support costs by inserting 
    existing commercial items or technology into military legacy 
    systems through the rapid development of prototypes and fielding of 
    production items based on current commercial technology.
        (2) Program priority.--The commercial operational and support 
    savings initiative shall fund programs that--
            (A) reduce the costs of owning and operating a military 
        system, including the costs of personnel, consumables, goods 
        and services, and sustaining the support and investment 
        associated with the peacetime operation of a weapon system;
            (B) take advantage of the commercial sector's technological 
        innovations by inserting commercial technology into fielded 
        weapon systems; and
            (C) emphasize prototyping and experimentation with new 
        technologies and concepts of operations.
        (3) Funding phases.--
            (A) In general.--Projects funded under the commercial 
        operational and support savings initiative shall consist of two 
        phases, Phase I and Phase II.
            (B) Phase i.--(i) Funds made available during Phase I shall 
        be used to perform the non-recurring engineering, testing, and 
        qualification that are typically needed to adapt a commercial 
        item or technology for use in a military system.
            (ii) Phase I shall include--
                (I) establishment of cost and performance metrics to 
            evaluate project success;
                (II) establishment of a transition plan and agreement 
            with a military department or Defense Agency for adoption 
            and sustainment of the technology or system; and
                (III) the development, fabrication, and delivery of a 
            demonstrated prototype to a military department for 
            installation into a fielded Department of Defense system.
            (iii) Programs shall be terminated if no agreement is 
        established within two years of project initiation.
            (iv) The Office of the Secretary of Defense may provide up 
        to 50 percent of Phase I funding for a project. The military 
        department or Defense Agency concerned may provide the 
        remainder of Phase I funding, which may be provided out of 
        operation and maintenance funding.
            (v) Phase I funding shall not exceed three years.
            (vi) Phase I projects shall be selected based on a merit-
        based process using criteria to be established by the Secretary 
        of Defense.
            (C) Phase ii.--(i) Phase II shall include the purchase of 
        limited production quantities of the prototype kits and 
        transition to a program of record for continued sustainment.
            (ii) Phase II awards may be made without competition if 
        general solicitation competitive procedures were used for the 
        selection of parties for participation in a Phase I project.
            (iii) Phase II awards may be made as firm fixed-price 
        awards.
        (4) Treatment as competitive procedures.--The use of a merit-
    based process for selection of projects under the commercial 
    operational and support savings initiative shall be considered to 
    be the use of competitive procedures for purposes of chapter 137 of 
    title 10, United States Code.
    SEC. 850. AUTHORITY TO DESIGNATE INCREMENTS OR BLOCKS OF ITEMS 
      DELIVERED UNDER MAJOR DEFENSE ACQUISITION PROGRAMS AS MAJOR 
      SUBPROGRAMS FOR PURPOSES OF ACQUISITION REPORTING.
    Section 2430a(1)(B) of title 10, United States Code, is amended by 
striking ``major defense acquisition program to purchase satellites 
requires the delivery of satellites in two or more increments or 
blocks'' and inserting ``major defense acquisition program requires the 
delivery of two or more increments or blocks''.
    SEC. 851. REPORTING OF SMALL BUSINESS PARTICIPATION ON DEPARTMENT 
      OF DEFENSE PROGRAMS.
    (a) Report Requirement.--Not later than March 31 of each year, the 
Secretary of Defense shall submit to the congressional defense 
committees a report covering the following matters for the preceding 
fiscal year:
        (1) For each prime contract goal established by section 
    15(g)(1)(A) of the Small Business Act (15 U.S.C. 644(g)(1)(A)), the 
    total value and percentage of prime contracts awarded by the 
    Department of Defense and attributed to each prime contract goal 
    for prime contracts awarded for major defense acquisition programs.
        (2) For each subcontract goal established by section 
    15(g)(1)(A) of the Small Business Act (15 U.S.C. 644(g)(1)(A)), the 
    total value and percentage of first tier subcontract awards 
    attributed to each subcontract goal for subcontracts awarded in 
    support of prime contracts awarded by the Department of Defense for 
    major defense acquisition programs.
        (3) For the prime contract and subcontract goals negotiated 
    with the Department of Defense pursuant to section 15(g)(2) of the 
    Small Business Act (15 U.S.C. 644(g)(2))--
            (A) the information reported by the Department of Defense 
        to the Small Business Administration pursuant to section 
        15(h)(1) of the Small Business Act (15 U.S.C. 644(h)(1)); and
            (B) the information required by subparagraph (A) calculated 
        after excluding--
                (i) contracts awarded pursuant to chapter 85 of title 
            41, United States Code (popularly referred to as the 
            Javits-Wagner-O'Day Act);
                (ii) contracts awarded to the American Institute in 
            Taiwan;
                (iii) contracts awarded and performed outside of the 
            United States;
                (iv) acquisition on behalf of foreign governments, 
            entities, or international organizations; and
                (v) contracts for major defense acquisition programs.
    (b) Sunset.--The requirement to submit a report under subsection 
(a) shall not apply after the Secretary submits the report covering 
fiscal year 2020.
    SEC. 852. WAIVER OF CONGRESSIONAL NOTIFICATION FOR ACQUISITION OF 
      TACTICAL MISSILES AND MUNITIONS GREATER THAN QUANTITY SPECIFIED 
      IN LAW.
    Section 2308(c) of title 10, United States Code, is amended--
        (1) by inserting ``(1)'' before ``The head'';
        (2) by inserting ``, except as provided in paragraph (2),'' 
    after ``but''; and
        (3) by adding at the end the following new paragraph:
    ``(2) A notification is not required under paragraph (1) if the end 
item being acquired in a higher quantity is an end item under a 
tactical missile program or a munitions program.''.
    SEC. 853. MULTIPLE PROGRAM MULTIYEAR CONTRACT PILOT DEMONSTRATION 
      PROGRAM.
    (a) Authority.--The Secretary of Defense may conduct a multiyear 
contract, over a period of up to four years, for the purchase of units 
for multiple defense programs that are produced at common facilities at 
a high rate, and which maximize commonality, efficiencies, and quality, 
in order to provide maximum benefit to the Department of Defense. 
Contracts awarded under this section should allow for significant 
savings, as determined consistent with the authority under section 
2306b of title 10, United States Code, to be achieved as compared to 
using separate annual contracts under individual programs to purchase 
such units, and may include flexible delivery across the overall period 
of performance.
    (b) Scope.--The contracts authorized in subsection (a) shall at a 
minimum provide for the acquisition of units from three discrete 
programs from two of the military departments.
    (c) Documentation.--Each contract awarded under subsection (a) 
shall include the documentation required to be provided for a multiyear 
contract proposal under section 2306b(i) of title 10.
    (d) Definitions.--In this section:
        (1) The term ``high rate'' means total annual production across 
    the multiple defense programs of more than 200 end-items per year.
        (2) The term ``common facilities'' means production facilities 
    operating within the same general and allowable rate structure.
    (e) Sunset.--No new contracts may be awarded under the authority of 
this section after September 30, 2021.
    SEC. 854. KEY PERFORMANCE PARAMETER REDUCTION PILOT PROGRAM.
    (a) In General.--The Secretary of Defense may carry out a pilot 
program under which the Secretary may identify at least one acquisition 
program in each military department for reduction of the total number 
of key performance parameters established for the program, for purposes 
of determining whether operational and programmatic outcomes of the 
program are improved by such reduction.
    (b) Limitation on Key Performance Parameters.--Any acquisition 
program identified for the pilot program carried out under subsection 
(a) shall establish no more than three key performance parameters, each 
of which shall describe a program-specific performance attribute. Any 
key performance parameters for such a program that are required by 
statute shall be treated as key system attributes.
    SEC. 855. MISSION INTEGRATION MANAGEMENT.
    (a) In General.--The Secretary of Defense shall establish mission 
integration management activities for each mission area specified in 
subsection (b).
    (b) Covered Mission Areas.--The mission areas specified in this 
subsection are mission areas that involve multiple Armed Forces and 
multiple programs and, at a minimum, include the following:
        (1) Close air support.
        (2) Air defense and offensive and defensive counter-air.
        (3) Interdiction.
        (4) Intelligence, surveillance, and reconnaissance.
        (5) Any other overlapping mission area of significance, as 
    jointly designated by the Deputy Secretary of Defense and the Vice 
    Chairman of the Joint Chiefs of Staff for purposes of this 
    subsection.
    (c) Qualifications.--Mission integration management activities 
shall be performed by qualified personnel from the acquisition and 
operational communities.
    (d) Responsibilities.--The mission integration management 
activities for a mission area under this section shall include--
        (1) development of technical infrastructure for engineering, 
    analysis, and test, including data, modeling, analytic tools, and 
    simulations;
        (2) the conduct of tests, demonstrations, exercises, and 
    focused experiments for compelling challenges and opportunities;
        (3) overseeing the implementation of section 2446c of title 10, 
    United States Code;
        (4) sponsoring and overseeing research on and development of 
    (including tests and demonstrations) automated tools for composing 
    systems of systems on demand;
        (5) developing mission-based inputs for the requirements 
    process, assessment of concepts, prototypes, design options, 
    budgeting and resource allocation, and program and portfolio 
    management; and
        (6) coordinating with commanders of the combatant commands on 
    the development of concepts of operation and operational plans.
    (e) Scope.--The mission integration management activities for a 
mission area under this subsection shall extend to the supporting 
elements for the mission area, such as communications, command and 
control, electronic warfare, and intelligence.
    (f) Funding.--There is authorized to be made available annually 
such amounts as the Secretary of Defense determines appropriate from 
the Rapid Prototyping Fund established under section 804(d) of the 
National Defense Authorization Act for Fiscal Year 2016 (Public Law 
114-92; 10 U.S.C. 2302 note) for mission integration management 
activities listed in subsection (d).
    (g) Strategy.--The Secretary of Defense shall submit to the 
congressional defense committees, at the same time as the budget for 
the Department of Defense for fiscal year 2018 is submitted to Congress 
pursuant to section 1105 of title 31, United States Code, a strategy 
for mission integration management, including a resourcing strategy for 
mission integration managers to carry out the responsibilities 
specified in this section.

        Subtitle E--Provisions Relating to Acquisition Workforce

    SEC. 861. PROJECT MANAGEMENT.
    (a) Deputy Director for Management.--
        (1) Additional functions.--Section 503 of title 31, United 
    States Code, is amended by adding at the end the following:
    ``(c) Program and Project Management.--
        ``(1) Requirement.--Subject to the direction and approval of 
    the Director, the Deputy Director for Management or a designee 
    shall--
            ``(A) adopt governmentwide standards, policies, and 
        guidelines for program and project management for executive 
        agencies;
            ``(B) oversee implementation of program and project 
        management for the standards, policies, and guidelines 
        established under subparagraph (A);
            ``(C) chair the Program Management Policy Council 
        established under section 1126(b);
            ``(D) establish standards and policies for executive 
        agencies, consistent with widely accepted standards for program 
        and project management planning and delivery;
            ``(E) engage with the private sector to identify best 
        practices in program and project management that would improve 
        Federal program and project management;
            ``(F) conduct portfolio reviews to address programs 
        identified as high risk by the Government Accountability 
        Office;
            ``(G) not less than annually, conduct portfolio reviews of 
        agency programs in coordination with Project Management 
        Improvement Officers designated under section 1126(a)(1) to 
        assess the quality and effectiveness of program management; and
            ``(H) establish a 5-year strategic plan for program and 
        project management.
        ``(2) Application to department of defense.--Paragraph (1) 
    shall not apply to the Department of Defense to the extent that the 
    provisions of that paragraph are substantially similar to or 
    duplicative of--
            ``(A) the provisions of chapter 87 of title 10; or
            ``(B) policy, guidance, or instruction of the Department 
        related to program management.''.
        (2) Deadline for standards, policies, and guidelines.--Not 
    later than 1 year after the date of enactment of this Act, the 
    Deputy Director for Management of the Office of Management and 
    Budget shall issue the standards, policies, and guidelines required 
    under section 503(c) of title 31, United States Code, as added by 
    paragraph (1).
        (3) Regulations.--Not later than 90 days after the date on 
    which the standards, policies, and guidelines are issued under 
    paragraph (2), the Deputy Director for Management of the Office of 
    Management and Budget, in consultation with the Program Management 
    Policy Council established under section 1126(b) of title 31, 
    United States Code, as added by subsection (b)(1), and the Director 
    of the Office of Management and Budget, shall issue any regulations 
    as are necessary to implement the requirements of section 503(c) of 
    title 31, United States Code, as added by paragraph (1).
    (b) Program Management Improvement Officers and Program Management 
Policy Council.--
        (1) Amendment.--Chapter 11 of title 31, United States Code, is 
    amended by adding at the end the following:
``Sec. 1126. Program Management Improvement Officers and Program 
    Management Policy Council
    ``(a) Program Management Improvement Officers.--
        ``(1) Designation.--The head of each agency described in 
    section 901(b) shall designate a senior executive of the agency as 
    the Program Management Improvement Officer of the agency.
        ``(2) Functions.--The Program Management Improvement Officer of 
    an agency designated under paragraph (1) shall--
            ``(A) implement program management policies established by 
        the agency under section 503(c); and
            ``(B) develop a strategy for enhancing the role of program 
        managers within the agency that includes the following:
                ``(i) Enhanced training and educational opportunities 
            for program managers that shall include--

                    ``(I) training in the relevant competencies 
                encompassed with program and project manager within the 
                private sector for program managers; and
                    ``(II) training that emphasizes cost containment 
                for large projects and programs.

                ``(ii) Mentoring of current and future program managers 
            by experienced senior executives and program managers 
            within the agency.
                ``(iii) Improved career paths and career opportunities 
            for program managers.
                ``(iv) A plan to encourage the recruitment and 
            retention of highly qualified individuals to serve as 
            program managers.
                ``(v) Improved means of collecting and disseminating 
            best practices and lessons learned to enhance program 
            management across the agency.
                ``(vi) Common templates and tools to support improved 
            data gathering and analysis for program management and 
            oversight purposes.
        ``(3) Application to department of defense.--This subsection 
    shall not apply to the Department of Defense to the extent that the 
    provisions of this subsection are substantially similar to or 
    duplicative of the provisions of chapter 87 of title 10. For 
    purposes of paragraph (1), the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics (or a designee of the Under 
    Secretary) shall be considered the Program Management Improvement 
    Officer.
    ``(b) Program Management Policy Council.--
        ``(1) Establishment.--There is established in the Office of 
    Management and Budget a council to be known as the `Program 
    Management Policy Council' (in this subsection referred to as the 
    `Council').
        ``(2) Purpose and functions.--The Council shall act as the 
    principal interagency forum for improving agency practices related 
    to program and project management. The Council shall--
            ``(A) advise and assist the Deputy Director for Management 
        of the Office of Management and Budget;
            ``(B) review programs identified as high risk by the 
        Government Accountability Office and make recommendations for 
        actions to be taken by the Deputy Director for Management of 
        the Office of Management and Budget or a designee;
            ``(C) discuss topics of importance to the workforce, 
        including--
                ``(i) career development and workforce development 
            needs;
                ``(ii) policy to support continuous improvement in 
            program and project management; and
                ``(iii) major challenges across agencies in managing 
            programs;
            ``(D) advise on the development and applicability of 
        standards governmentwide for program management transparency; 
        and
            ``(E) review the information published on the website of 
        the Office of Management and Budget pursuant to section 1122.
        ``(3) Membership.--
            ``(A) Composition.--The Council shall be composed of the 
        following members:
                ``(i) Five members from the Office of Management and 
            Budget as follows:

                    ``(I) The Deputy Director for Management.
                    ``(II) The Administrator of the Office of 
                Electronic Government.
                    ``(III) The Administrator of Federal Procurement 
                Policy.
                    ``(IV) The Controller of the Office of Federal 
                Financial Management.
                    ``(V) The Director of the Office of Performance and 
                Personnel Management.

                ``(ii) The Program Management Improvement Officer from 
            each agency described in section 901(b).
                ``(iii) Any other full-time or permanent part-time 
            officer or employee of the Federal Government or member of 
            the Armed Forces designated by the Chairperson.
            ``(B) Chairperson and vice chairperson.--
                ``(i) In general.--The Deputy Director for Management 
            of the Office of Management and Budget shall be the 
            Chairperson of the Council. A Vice Chairperson shall be 
            elected by the members and shall serve a term of not more 
            than 1 year.
                ``(ii) Duties.--The Chairperson shall preside at the 
            meetings of the Council, determine the agenda of the 
            Council, direct the work of the Council, and establish and 
            direct subgroups of the Council as appropriate.
        ``(4) Meetings.--The Council shall meet not less than twice per 
    fiscal year and may meet at the call of the Chairperson or a 
    majority of the members of the Council.
        ``(5) Support.--The head of each agency with a Project 
    Management Improvement Officer serving on the Council shall provide 
    administrative support to the Council, as appropriate, at the 
    request of the Chairperson.''.
        (2) Report required.--Not later than 1 year after the date of 
    the enactment of this Act, the Director of the Office of Management 
    and Budget, in consultation with each Program Management 
    Improvement Officer designated under section 1126(a)(1) of title 
    31, United States Code, shall submit to Congress a report 
    containing the strategy developed under section 1126(a)(2)(B) of 
    such title, as added by paragraph (1).
    (c) Program and Project Management Personnel Standards.--
        (1) Definition.--In this subsection, the term ``agency'' means 
    each agency described in section 901(b) of title 31, United States 
    Code, other than the Department of Defense.
        (2) Regulations required.--Not later than 180 days after the 
    date on which the standards, policies, and guidelines are issued 
    under section 503(c) of title 31, United States Code, as added by 
    subsection (a)(1), the Director of the Office of Personnel 
    Management, in consultation with the Director of the Office of 
    Management and Budget, shall issue regulations that--
            (A) identify key skills and competencies needed for a 
        program and project manager in an agency;
            (B) establish a new job series, or update and improve an 
        existing job series, for program and project management within 
        an agency; and
            (C) establish a new career path for program and project 
        managers within an agency.
    (d) GAO Report on Effectiveness of Policies on Program and Project 
Management.--Not later than 3 years after the date of enactment of this 
Act, the Comptroller General of the United States shall issue, in 
conjunction with the high risk list of the Government Accountability 
Office, a report examining the effectiveness of the following on 
improving Federal program and project management:
        (1) The standards, policies, and guidelines for program and 
    project management issued under section 503(c) of title 31, United 
    States Code, as added by subsection (a)(1).
        (2) The 5-year strategic plan established under section 
    503(c)(1)(H) of title 31, United States Code, as added by 
    subsection (a)(1).
        (3) Program Management Improvement Officers designated under 
    section 1126(a)(1) of title 31, United States Code, as added by 
    subsection (b)(1).
        (4) The Program Management Policy Council established under 
    section 1126(b)(1) of title 31, United States Code, as added by 
    subsection (b)(1).
    SEC. 862. AUTHORITY TO WAIVE TENURE REQUIREMENT FOR PROGRAM 
      MANAGERS FOR PROGRAM DEFINITION AND PROGRAM EXECUTION PERIODS.
    (a) Program Definition Period.--Section 826(e) of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92) is 
amended by striking ``The Secretary may waive'' and inserting ``The 
service acquisition executive, in the case of a major defense 
acquisition program of a military department, or the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, in the case of a 
Defense-wide or Defense Agency major defense acquisition program, may 
waive''.
    (b) Program Execution Period.--Section 827(e) of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92) is 
amended by striking ``The immediate supervisor of a program manager for 
a major defense acquisition program may waive'' and inserting ``The 
service acquisition executive, in the case of a major defense 
acquisition program of a military department, or the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, in the case of a 
Defense-wide or Defense Agency major defense acquisition program, may 
waive''.
    SEC. 863. PURPOSES FOR WHICH THE DEPARTMENT OF DEFENSE ACQUISITION 
      WORKFORCE DEVELOPMENT FUND MAY BE USED; ADVISORY PANEL 
      AMENDMENTS.
    (a) In General.--Section 1705 of title 10, United States Code, is 
amended--
        (1) in subsection (e)--
            (A) in paragraph (1), by inserting ``and to develop 
        acquisition tools and methodologies, and undertake research and 
        development activities, leading to acquisition policies and 
        practices that will improve the efficiency and effectiveness of 
        defense acquisition efforts'' after ``workforce of the 
        Department''; and
            (B) in paragraph (4), by striking ``other than for the 
        purpose of'' and all that follows through the period at the end 
        and inserting ``other than for the purposes of--
            ``(A) providing advanced training to Department of Defense 
        employees;
            ``(B) developing acquisition tools and methodologies and 
        performing research on acquisition policies and best practices 
        that will improve the efficiency and effectiveness of defense 
        acquisition efforts; and
            ``(C) supporting human capital and talent management of the 
        acquisition workforce, including benchmarking studies, 
        assessments, and requirements planning.''; and
        (2) in subsection (f), by striking ``Each report shall 
    include'' and all that follows through the period at the end of 
    paragraph (5).
    (b) Technical Amendments.--Such section is further amended--
        (1) in subsection (d)(2)(C), by striking ``in each'' and 
    inserting ``in such'';
        (2) in subsection (f)--
            (A) by striking ``Not later than 120 days after the end of 
        each fiscal year'' and inserting ``Not later than February 1 
        each year''; and
            (B) by striking ``such fiscal year'' the first place it 
        appears and inserting ``the preceding fiscal year''; and
        (3) in subsection (g)(1)--
            (A) by striking ``of of'' and inserting ``of''; and
            (B) by striking ``, as defined in subsection (h),''.
    (c) Limitation on Availability of Funds for Certain Purposes.--Of 
the amounts authorized to be appropriated by this Act or otherwise made 
available for fiscal year 2017, not more than $35,000,000 may be 
obligated or expended for the purposes set forth in subparagraphs (B) 
and (C) of section 1705(e)(4) of title 10, United States Code, as added 
by subsection (a).
    (d) Amendments to Advisory Panel on Streamlining and Codifying 
Acquisition Regulations.--Section 809 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
889) is amended--
        (1) by amending subsection (a) to read as follows:
    ``(a) Establishment.--The Secretary of Defense shall establish an 
independent advisory panel on streamlining acquisition regulations. The 
panel shall be supported by the Defense Acquisition University and the 
National Defense University, including administrative support.''; and
        (2) in subsection (d)--
            (A) in paragraph (1), by striking ``and analysis'' and 
        inserting ``, analysis, and logistics support''; and
            (B) by adding at the end the following new paragraph:
        ``(3) Authorities.--The panel shall have the authorities 
    provided in section 3161 of title 5, United States Code.''.
    SEC. 864. DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT 
      FUND DETERMINATION ADJUSTMENT.
    (a) Credit to Rapid Prototyping Fund.--Notwithstanding section 
1705(d)(2)(B) of title 10, United States Code, of the funds credited to 
the Department of Defense Acquisition Workforce Development Fund in 
fiscal year 2017 pursuant to such section, $225,000,000 shall be 
transferred to the Rapid Prototyping Fund established under section 
804(d) of the National Defense Authorization Act for Fiscal Year 2016 
(Public Law 114-92; 10 U.S.C. 2302 note). Of the $225,000,000 so 
transferred, $75,000,000 shall be credited to each of the military 
department-specific funds established under section 804(d)(2) of such 
Act (as added by section 897 of this Act).
    (b) Technical and Conforming Amendments.--Section 804(d)(1) of the 
National Defense Authorization Act for Fiscal Year 2016 (Public Law 
114-92; 10 U.S.C. 2302 note) is amended--
        (1) in the first sentence, by inserting a comma after ``may be 
    available'';
        (2) at the end of the first sentence, by inserting before the 
    period the following: ``and other purposes specified in law''; and
        (3) in the last sentence, by striking ``shall consist of'' and 
    all that follows through ``this Act.'' and inserting the following: 
    ``shall consist of--
                ``(i) amounts appropriated to the Fund;
                ``(ii) amounts credited to the Fund pursuant to section 
            828 of this Act; and
                ``(iii) any other amounts appropriated to, credited to, 
            or transferred to the Fund.''.
    SEC. 865. LIMITATIONS ON FUNDS USED FOR STAFF AUGMENTATION 
      CONTRACTS AT MANAGEMENT HEADQUARTERS OF THE DEPARTMENT OF DEFENSE 
      AND THE MILITARY DEPARTMENTS.
    (a) Limitations.--
        (1) For fiscal years 2017 and 2018.--The total amount obligated 
    by the Department of Defense for fiscal year 2017 or 2018 for 
    contract services for staff augmentation contracts at management 
    headquarters of the Department and the military departments may not 
    exceed an amount equal to the aggregate amount expended by the 
    Department for contract services for staff augmentation contracts 
    at management headquarters of the Department and the military 
    departments in fiscal year 2016 adjusted for net transfers from 
    funding for overseas contingency operations (in this subsection 
    referred to as the ``fiscal year 2016 staff augmentation contracts 
    funding amount'').
        (2) For fiscal years 2018 through 2022.--The total amount 
    obligated by the Department for any fiscal year after fiscal year 
    2018 and before fiscal year 2023 for contract services for staff 
    augmentation contracts at management headquarters of the Department 
    and the military departments may not exceed an amount equal to 75 
    percent of the fiscal year 2016 staff augmentation contracts 
    funding amount.
    (b) Definitions.--In this section:
        (1) The term ``contract services'' has the meaning given that 
    term in section 235 of title 10, United States Code.
        (2) The term ``staff augmentation contracts'' means services 
    contracts for personnel who are physically present in a Government 
    work space on a full-time or permanent part-time basis, for the 
    purpose of advising on, providing support to, or assisting a 
    Government agency in the performance of the agency's missions, 
    including authorized personal services contracts (as that term is 
    defined in section 2330a(g)(5) of title 10, United States Code).
    SEC. 866. SENIOR MILITARY ACQUISITION ADVISORS IN THE DEFENSE 
      ACQUISITION CORPS.
    (a) Positions.--
        (1) In general.--Subchapter II of chapter 87 of title 10, 
    United States Code, is amended by adding at the end the following 
    new section:
``Sec. 1725. Senior Military Acquisition Advisors
    ``(a) Position.--
        ``(1) In general.--The Secretary of Defense may establish in 
    the Defense Acquisition Corps a position to be known as `Senior 
    Military Acquisition Advisor'.
        ``(2) Appointment.--A Senior Military Acquisition Advisor shall 
    be appointed by the President, by and with the advice and consent 
    of the Senate.
        ``(3) Scope of position.--An officer who is appointed as a 
    Senior Military Acquisition Advisor--
            ``(A) shall serve as an advisor to, and provide senior 
        level acquisition expertise to, the service acquisition 
        executive of that officer's military department in accordance 
        with this section; and
            ``(B) shall be assigned as an adjunct professor at the 
        Defense Acquisition University.
    ``(b) Continuation on Active Duty.--An officer who is appointed as 
a Senior Military Acquisition Advisor may continue on active duty while 
serving in such position without regard to any mandatory retirement 
date that would otherwise be applicable to that officer by reason of 
years of service or age. An officer who is continued on active duty 
pursuant to this section is not eligible for consideration for 
selection for promotion.
    ``(c) Retired Grade.--Upon retirement, an officer who is a Senior 
Military Acquisition Advisor may, in the discretion of the President, 
be retired in the grade of brigadier general or rear admiral (lower 
half) if--
        ``(1) the officer has served as a Senior Military Acquisition 
    Advisor for a period of not less than three years; and
        ``(2) the officer's service as a Senior Military Acquisition 
    Advisor has been distinguished.
    ``(d) Selection and Tenure.--
        ``(1) In general.--Selection of an officer for recommendation 
    for appointment as a Senior Military Acquisition Advisor shall be 
    made competitively, and shall be based upon demonstrated experience 
    and expertise in acquisition.
        ``(2) Officers eligible.--Officers shall be selected for 
    recommendation for appointment as Senior Military Acquisition 
    Advisors from among officers of the Defense Acquisition Corps who 
    are serving in the grade of colonel or, in the case of the Navy, 
    captain, and who have at least 12 years of acquisition experience. 
    An officer selected for recommendation for appointment as a Senior 
    Military Acquisition Advisor shall have at least 30 years of active 
    commissioned service at the time of appointment.
        ``(3) Term.--The appointment of an officer as a Senior Military 
    Acquisition Advisor shall be for a term of not longer than five 
    years.
    ``(e) Limitation.--
        ``(1) Limitation on number and distribution.--There may not be 
    more than 15 Senior Military Acquisition Advisors at any time, of 
    whom--
            ``(A) not more than five may be officers of the Army;
            ``(B) not more than five may be officers of the Navy and 
        Marine Corps; and
            ``(C) not more than five may be officers of the Air Force.
        ``(2) Number in each military department.--Subject to paragraph 
    (1), the number of Senior Military Acquisition Advisors for each 
    military department shall be as required and identified by the 
    service acquisition executive of such military department and 
    approved by the Under Secretary of Defense for Acquisition, 
    Technology, and Logistics.
    ``(f) Advice to Service Acquisition Executive.--An officer who is a 
Senior Military Acquisition Advisor shall have as the officer's primary 
duty providing strategic, technical, and programmatic advice to the 
service acquisition executive of the officer's military department on 
matters pertaining to the Defense Acquisition System, including matters 
pertaining to procurement, research and development, advanced 
technology, test and evaluation, production, program management, 
systems engineering, and lifecycle logistics.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of subchapter II of chapter 87 of such title is amended by adding 
    at the end the following new item:

``1725. Senior Military Acquisition Advisors.''.

    (b) Exclusion From Officer Grade-strength Limitations.--Section 
523(b) of such title is amended by adding at the end the following new 
paragraph:
        ``(9) Officers who are Senior Military Acquisition Advisors 
    under section 1725 of this title, but not to exceed 15.''.
    SEC. 867. AUTHORITY OF THE SECRETARY OF DEFENSE UNDER THE 
      ACQUISITION DEMONSTRATION PROJECT.
    (a) Amendment.--Section 1762(b) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
        ``(4) The Secretary of Defense shall exercise the authorities 
    granted to the Office of Personnel Management under section 4703 of 
    title 5 for purposes of the demonstration project authorized under 
    this section.''.
    (b) Effective Date.--Paragraph (4) of section 1762(b) of title 10, 
United States Code, as added by subsection (a), shall take effect on 
the first day of the first month beginning 60 days after the date of 
the enactment of this Act.

          Subtitle F--Provisions Relating to Commercial Items

    SEC. 871. MARKET RESEARCH FOR DETERMINATION OF PRICE REASONABLENESS 
      IN ACQUISITION OF COMMERCIAL ITEMS.
    Section 2377 of title 10, United States Code, is amended--
        (1) by redesignating subsection (d) as subsection (e), and in 
    that subsection by striking ``subsection (c)'' and inserting 
    ``subsections (c) and (d)''; and
        (2) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) Market Research for Price Analysis.--The Secretary of Defense 
shall ensure that procurement officials in the Department of Defense 
conduct or obtain market research to support the determination of the 
reasonableness of price for commercial items contained in any bid or 
offer submitted in response to an agency solicitation. To the extent 
necessary to support such market research, the procurement official for 
the solicitation--
        ``(1) in the case of items acquired under section 2379 of this 
    title, shall use information submitted under subsection (d) of that 
    section; and
        ``(2) in the case of other items, may require the offeror to 
    submit relevant information.''.
    SEC. 872. VALUE ANALYSIS FOR THE DETERMINATION OF PRICE 
      REASONABLENESS.
    Subsection 2379(d) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
    ``(2) An offeror may submit information or analysis relating to the 
value of a commercial item to aid in the determination of the 
reasonableness of the price of such item. A contracting officer may 
consider such information or analysis in addition to the information 
submitted pursuant to paragraphs (1)(A) and (1)(B).''.
    SEC. 873. CLARIFICATION OF REQUIREMENTS RELATING TO COMMERCIAL ITEM 
      DETERMINATIONS.
    Paragraphs (1) and (2) of section 2380 of title 10, United States 
Code, are amended to read as follows:
        ``(1) establish and maintain a centralized capability with 
    necessary expertise and resources to provide assistance to the 
    military departments and Defense Agencies in making commercial item 
    determinations, conducting market research, and performing analysis 
    of price reasonableness for the purposes of procurements by the 
    Department of Defense; and
        ``(2) provide to officials of the Department of Defense access 
    to previous Department of Defense commercial item determinations, 
    market research, and analysis used to determine the reasonableness 
    of price for the purposes of procurements by the Department of 
    Defense.''.
    SEC. 874. INAPPLICABILITY OF CERTAIN LAWS AND REGULATIONS TO THE 
      ACQUISITION OF COMMERCIAL ITEMS AND COMMERCIALLY AVAILABLE OFF-
      THE-SHELF ITEMS.
    (a) Amendment to Title 10, United States Code.--Section 2375 of 
title 10, United States Code, is amended to read as follows:
``Sec. 2375. Relationship of commercial item provisions to other 
    provisions of law
    ``(a) Applicability of Government-wide Statutes.--(1) No contract 
for the procurement of a commercial item entered into by the head of an 
agency shall be subject to any law properly listed in the Federal 
Acquisition Regulation pursuant to section 1906(b) of title 41.
    ``(2) No subcontract under a contract for the procurement of a 
commercial item entered into by the head of an agency shall be subject 
to any law properly listed in the Federal Acquisition Regulation 
pursuant to section 1906(c) of title 41.
    ``(3) No contract for the procurement of a commercially available 
off-the-shelf item entered into by the head of an agency shall be 
subject to any law properly listed in the Federal Acquisition 
Regulation pursuant to section 1907 of title 41.
    ``(b) Applicability of Defense-unique Statutes to Contracts for 
Commercial Items.--(1) The Defense Federal Acquisition Regulation 
Supplement shall include a list of defense-unique provisions of law and 
of contract clause requirements based on government-wide acquisition 
regulations, policies, or executive orders not expressly authorized in 
law that are inapplicable to contracts for the procurement of 
commercial items. A provision of law or contract clause requirement 
properly included on the list pursuant to paragraph (2) does not apply 
to purchases of commercial items by the Department of Defense. This 
section does not render a provision of law or contract clause 
requirement not included on the list inapplicable to contracts for the 
procurement of commercial items.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) that is enacted after January 1, 2015, shall be 
included on the list of inapplicable provisions of law and contract 
clause requirements required by paragraph (1) unless the Under 
Secretary of Defense for Acquisition, Technology, and Logistics makes a 
written determination that it would not be in the best interest of the 
Department of Defense to exempt contracts for the procurement of 
commercial items from the applicability of the provision or contract 
clause requirement.
    ``(c) Applicability of Defense-unique Statutes to Subcontracts for 
Commercial Items.--(1) The Defense Federal Acquisition Regulation 
Supplement shall include a list of provisions of law and of contract 
clause requirements based on government-wide acquisition regulations, 
policies, or executive orders not expressly authorized in law that are 
inapplicable to subcontracts under a Department of Defense contract or 
subcontract for the procurement of commercial items. A provision of law 
or contract clause requirement properly included on the list pursuant 
to paragraph (2) does not apply to those subcontracts. This section 
does not render a provision of law or contract clause requirement not 
included on the list inapplicable to subcontracts under a contract for 
the procurement of commercial items.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) shall be included on the list of inapplicable 
provisions of law and contract clause requirements required by 
paragraph (1) unless the Under Secretary of Defense for Acquisition, 
Technology, and Logistics makes a written determination that it would 
not be in the best interest of the Department of Defense to exempt 
subcontracts under a contract for the procurement of commercial items 
from the applicability of the provision or contract clause requirement.
    ``(3) In this subsection, the term `subcontract' includes a 
transfer of commercial items between divisions, subsidiaries, or 
affiliates of a contractor or subcontractor. The term does not include 
agreements entered into by a contractor for the supply of commodities 
that are intended for use in the performance of multiple contracts with 
the Department of Defense and other parties and are not identifiable to 
any particular contract.
    ``(4) This subsection does not authorize the waiver of the 
applicability of any provision of law or contract clause requirement 
with respect to any first-tier subcontract under a contract with a 
prime contractor reselling or distributing commercial items of another 
contractor without adding value.
    ``(d) Applicability of Defense-unique Statutes to Contracts for 
Commercially Available, Off-the-shelf Items.--(1) The Defense Federal 
Acquisition Regulation Supplement shall include a list of provisions of 
law and of contract clause requirements based on government-wide 
acquisition regulations, policies, or executive orders not expressly 
authorized in law that are inapplicable to contracts for the 
procurement of commercially available off-the-shelf items. A provision 
of law or contract clause requirement properly included on the list 
pursuant to paragraph (2) does not apply to Department of Defense 
contracts for the procurement of commercially available off-the-shelf 
items. This section does not render a provision of law or contract 
clause requirement not included on the list inapplicable to contracts 
for the procurement of commercially available off-the-shelf items.
    ``(2) A provision of law or contract clause requirement described 
in subsection (e) shall be included on the list of inapplicable 
provisions of law and contract clause requirements required by 
paragraph (1) unless the Under Secretary of Defense for Acquisition, 
Technology, and Logistics makes a written determination that it would 
not be in the best interest of the Department of Defense to exempt 
contracts for the procurement of commercially available off-the-shelf 
items from the applicability of the provision or contract clause 
requirement.
    ``(e) Covered Provision of Law or Contract Clause Requirement.--A 
provision of law or contract clause requirement referred to in 
subsections (b)(2), (c)(2), and (d)(2) is a provision of law or 
contract clause requirement that the Under Secretary of Defense for 
Acquisition, Technology, and Logistics determines sets forth policies, 
procedures, requirements, or restrictions for the procurement of 
property or services by the Federal Government, except for a provision 
of law or contract clause requirement that--
        ``(1) provides for criminal or civil penalties;
        ``(2) requires that certain articles be bought from American 
    sources pursuant to section 2533a of this title, or requires that 
    strategic materials critical to national security be bought from 
    American sources pursuant to section 2533b of this title; or
        ``(3) specifically refers to this section and provides that, 
    notwithstanding this section, it shall be applicable to contracts 
    for the procurement of commercial items.''.
    (b) Changes to Defense Federal Acquisition Regulation Supplement.--
        (1) In general.--To the maximum extent practicable, the Under 
    Secretary of Defense for Acquisition, Technology, and Logistics 
    shall ensure that--
            (A) the Defense Federal Acquisition Regulation Supplement 
        does not require the inclusion of contract clauses in contracts 
        for the procurement of commercial items or contracts for the 
        procurement of commercially available off-the-shelf items, 
        unless such clauses are--
                (i) required to implement provisions of law or 
            executive orders applicable to such contracts; or
                (ii) determined to be consistent with standard 
            commercial practice; and
            (B) the flow-down of contract clauses to subcontracts under 
        contracts for the procurement of commercial items or 
        commercially available off-the-shelf items is prohibited unless 
        such flow-down is required to implement provisions of law or 
        executive orders applicable to such subcontracts.
        (2) Subcontracts.--In this subsection, the term ``subcontract'' 
    includes a transfer of commercial items between divisions, 
    subsidiaries, or affiliates of a contractor or subcontractor. The 
    term does not include agreements entered into by a contractor for 
    the supply of commodities that are intended for use in the 
    performance of multiple contracts with the Department of Defense 
    and other parties and are not identifiable to any particular 
    contract.
    SEC. 875. USE OF COMMERCIAL OR NON-GOVERNMENT STANDARDS IN LIEU OF 
      MILITARY SPECIFICATIONS AND STANDARDS.
    (a) In General.--The Secretary of Defense shall ensure that the 
Department of Defense uses commercial or non-Government specifications 
and standards in lieu of military specifications and standards, 
including for procuring new systems, major modifications, upgrades to 
current systems, non-developmental and commercial items, and programs 
in all acquisition categories, unless no practical alternative exists 
to meet user needs. If it is not practicable to use a commercial or 
non-Government standard, a Government-unique specification may be used.
    (b) Limited Use of Military Specifications.--
        (1) In general.--Military specifications shall be used in 
    procurements only to define an exact design solution when there is 
    no acceptable commercial or non-Government standard or when the use 
    of a commercial or non-Government standard is not cost effective.
        (2) Waiver.--A waiver for the use of military specifications in 
    accordance with paragraph (1) shall be approved by either the 
    appropriate milestone decision authority, the appropriate service 
    acquisition executive, or the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics.
    (c) Revision to DFARS.--Not later than 180 days after the date of 
the enactment of this Act, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall revise the Defense Federal 
Acquisition Regulation Supplement to encourage contractors to propose 
commercial or non-Government standards and industry-wide practices that 
meet the intent of the military specifications and standards.
    (d) Development of Non-government Standards.--The Under Secretary 
for Acquisition, Technology, and Logistics shall form partnerships with 
appropriate industry associations to develop commercial or non-
Government standards for replacement of military specifications and 
standards where practicable.
    (e) Education, Training, and Guidance.--The Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall ensure that 
training, education, and guidance programs throughout the Department 
are revised to incorporate specifications and standards reform.
    (f) Licenses.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall negotiate licenses for standards to be 
used across the Department of Defense and shall maintain an inventory 
of such licenses that is accessible to other Department of Defense 
organizations.
    SEC. 876. PREFERENCE FOR COMMERCIAL SERVICES.
    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Defense shall revise the guidance issued pursuant to 
section 855 of the National Defense Authorization Act for Fiscal Year 
2016 (Public Law 114-92; 10 U.S.C. 2377 note) to provide that--
        (1) the head of an agency may not enter into a contract in 
    excess of $10,000,000 for facilities-related services, knowledge-
    based services (except engineering services), construction 
    services, medical services, or transportation services that are not 
    commercial services unless the service acquisition executive of the 
    military department concerned, the head of the Defense Agency 
    concerned, the commander of the combatant command concerned, or the 
    Under Secretary of Defense for Acquisition, Technology, and 
    Logistics (as applicable) determines in writing that no commercial 
    services are suitable to meet the agency's needs as provided in 
    section 2377(c)(2) of title 10, United States Code; and
        (2) the head of an agency may not enter into a contract in an 
    amount above the simplified acquisition threshold and below 
    $10,000,000 for facilities-related services, knowledge-based 
    services (except engineering services), construction services, 
    medical services, or transportation services that are not 
    commercial services unless the contracting officer determines in 
    writing that no commercial services are suitable to meet the 
    agency's needs as provided in section 2377(c)(2) of such title.
    SEC. 877. TREATMENT OF COMMINGLED ITEMS PURCHASED BY CONTRACTORS AS 
      COMMERCIAL ITEMS.
    (a) In General.--Chapter 140 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2380B. Treatment of commingled items purchased by contractors as 
     commercial items
    ``Notwithstanding 2376(1) of this title, items valued at less than 
$10,000 that are purchased by a contractor for use in the performance 
of multiple contracts with the Department of Defense and other parties 
and are not identifiable to any particular contract shall be treated as 
a commercial item for purposed of this chapter.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 2380A the 
following new item:

``2380B. Treatment of items purchased prior to release of prime contract 
          requests for proposals as commercial items.''.
    SEC. 878. TREATMENT OF SERVICES PROVIDED BY NONTRADITIONAL 
      CONTRACTORS AS COMMERCIAL ITEMS.
    (a) In General.--Section 2380A of title 10, United States Code, is 
amended--
        (1) by striking ``Notwithstanding'' and inserting the 
    following:
    ``(a) Goods and Services Provided by Nontraditional Defense 
Contractors.--Notwithstanding''; and
        (2) by adding at the end the following new subsection:
    ``(b) Services Provided by Certain Nontraditional Contractors.--
Notwithstanding section 2376(1) of this title, services provided by a 
business unit that is a nontraditional defense contractor (as that term 
is defined in section 2302(9) of this title) shall be treated as 
commercial items for purposes of this chapter, to the extent that such 
services use the same pool of employees as used for commercial 
customers and are priced using methodology similar to methodology used 
for commercial pricing.''.
    (b) Conforming Amendments.--
        (1) Section heading.--Section 2380A of title 10, United States 
    Code, as amended by subsection (a), is further amended by striking 
    the section heading and inserting the following:
``Sec. 2380a. Treatment of certain items as commercial items''.
        (2) Table of sections.--The table of sections at the beginning 
    of chapter 140 of title 10, United States Code, is amended by 
    striking the item relating to section 2380A and inserting the 
    following new item:

``2380a. Treatment of certain items as commercial items.''.
    SEC. 879. DEFENSE PILOT PROGRAM FOR AUTHORITY TO ACQUIRE INNOVATIVE 
      COMMERCIAL ITEMS, TECHNOLOGIES, AND SERVICES USING GENERAL 
      SOLICITATION COMPETITIVE PROCEDURES.
    (a) Authority.--The Secretary of Defense and the Secretaries of the 
military departments may carry out a pilot program, to be known as the 
``defense commercial solutions opening pilot program'', under which the 
Secretary may acquire innovative commercial items, technologies, and 
services through a competitive selection of proposals resulting from a 
general solicitation and the peer review of such proposals.
    (b) Treatment as Competitive Procedures.--Use of general 
solicitation competitive procedures for the pilot program under 
subsection (a) shall be considered to be use of competitive procedures 
for purposes of chapter 137 of title 10, United States Code.
    (c) Limitations.--
        (1) In general.--The Secretary may not enter into a contract or 
    agreement under the pilot program for an amount in excess of 
    $100,000,000 without a written determination from the Under 
    Secretary for Acquisition, Logistics, and Technology or the 
    relevant service acquisition executive of the efficacy of the 
    effort to meet mission needs of the Department of Defense or the 
    relevant military department.
        (2) Fixed-price requirement.--Contracts or agreements entered 
    into under the program shall be fixed-price, including fixed-price 
    incentive fee contracts.
        (3) Treatment as commercial items.--Notwithstanding section 
    2376(1) of title 10, United States Code, items, technologies, and 
    services acquired under the pilot program shall be treated as 
    commercial items.
    (d) Guidance.--Not later than six months after the date of the 
enactment of this Act, the Secretary shall issue guidance for the 
implementation of the pilot program under this section within the 
Department of Defense. Such guidance shall be issued in consultation 
with the Director of the Office of Management and Budget and shall be 
posted for access by the public.
    (e) Congressional Notification Required.--
        (1) In general.--Not later than 45 days after the award of a 
    contract for an amount exceeding $100,000,000 using the authority 
    in subsection (a), the Secretary of Defense shall notify the 
    congressional defense committees of such award.
        (2) Elements.--Notice of an award under paragraph (1) shall 
    include the following:
            (A) Description of the innovative commercial item, 
        technology, or service acquired.
            (B) Description of the requirement, capability gap, or 
        potential technological advancement with respect to which the 
        innovative commercial item, technology, or service acquired 
        provides a solution or a potential new capability.
            (C) Amount of the contract awarded.
            (D) Identification of contractor awarded the contract.
    (f) Definition.--In this section, the term ``innovative'' means--
        (1) any technology, process, or method, including research and 
    development, that is new as of the date of submission of a 
    proposal; or
        (2) any application that is new as of the date of submission of 
    a proposal of a technology, process, or method existing as of such 
    date.
    (g) Sunset.--The authority to enter into contracts under the pilot 
program shall expire on September 30, 2022.
    SEC. 880. PILOT PROGRAMS FOR AUTHORITY TO ACQUIRE INNOVATIVE 
      COMMERCIAL ITEMS USING GENERAL SOLICITATION COMPETITIVE 
      PROCEDURES.
    (a) Authority.--
        (1) In general.--The head of an agency may carry out a pilot 
    program, to be known as a ``commercial solutions opening pilot 
    program'', under which innovative commercial items may be acquired 
    through a competitive selection of proposals resulting from a 
    general solicitation and the peer review of such proposals.
        (2) Head of an agency.--In this section, the term ``head of an 
    agency'' means the following:
            (A) The Secretary of Homeland Security.
            (B) The Administrator of General Services.
        (3) Applicability of section.--This section applies to the 
    following agencies:
            (A) The Department of Homeland Security.
            (B) The General Services Administration.
    (b) Treatment as Competitive Procedures.--Use of general 
solicitation competitive procedures for the pilot program under 
subsection (a) shall be considered, in the case of the Department of 
Homeland Security and the General Services Administration, to be use of 
competitive procedures for purposes of division C of title 41, United 
States Code (as defined in section 152 of such title).
    (c) Limitation.--The head of an agency may not enter into a 
contract under the pilot program for an amount in excess of 
$10,000,000.
    (d) Guidance.--The head of an agency shall issue guidance for the 
implementation of the pilot program under this section within that 
agency. Such guidance shall be issued in consultation with the Office 
of Management and Budget and shall be posted for access by the public.
    (e) Report Required.--
        (1) In general.--Not later than three years after the date of 
    the enactment of this Act, the head of an agency shall submit to 
    the congressional committees specified in paragraph (3) a report on 
    the activities the agency carried out under the pilot program.
        (2) Elements of report.--Each report under this subsection 
    shall include the following:
            (A) An assessment of the impact of the pilot program on 
        competition.
            (B) A comparison of acquisition timelines for--
                (i) procurements made using the pilot program; and
                (ii) procurements made using other competitive 
            procedures that do not use general solicitations.
            (C) A recommendation on whether the authority for the pilot 
        program should be made permanent.
        (3) Specified congressional committees.--The congressional 
    committees specified in this paragraph are the Committee on 
    Homeland Security and Governmental Affairs of the Senate and the 
    Committee on Oversight and Government Reform of the House of 
    Representatives.
    (f) Innovative Defined.--In this section, the term ``innovative'' 
means--
        (1) any new technology, process, or method, including research 
    and development; or
        (2) any new application of an existing technology, process, or 
    method.
    (g) Termination.--The authority to enter into a contract under a 
pilot program under this section terminates on September 30, 2022.

                  Subtitle G--Industrial Base Matters

    SEC. 881. GREATER INTEGRATION OF THE NATIONAL TECHNOLOGY AND 
      INDUSTRIAL BASE.
    (a) Plan Required.--Not later than January 1, 2018, the Secretary 
of Defense shall develop a plan to reduce the barriers to the seamless 
integration between the persons and organizations that comprise the 
national technology and industrial base (as defined in section 2500 of 
title 10, United States Code). The plan shall include at a minimum the 
following elements:
        (1) A description of the various components of the national 
    technology and industrial base, including government entities, 
    universities, nonprofit research entities, nontraditional and 
    commercial item contractors, and private contractors that conduct 
    commercial and military research, produce commercial items that 
    could be used by the Department of Defense, and produce items 
    designated and controlled under section 38 of the Arms Export 
    Control Act (also known as the ``United States Munitions List'').
        (2) Identification of the barriers to the seamless integration 
    of the transfer of knowledge, goods, and services among the persons 
    and organizations of the national technology and industrial base.
        (3) Identification of current authorities that could contribute 
    to further integration of the persons and organizations of the 
    national technology and industrial base, and a plan to maximize the 
    use of those authorities.
        (4) Identification of changes in export control rules, 
    procedures, and laws that would enhance the civil-military 
    integration policy objectives set forth in section 2501(b) of title 
    10, United States Code, for the national technology and industrial 
    base to increase the access of the Armed Forces to commercial 
    products, services, and research and create incentives necessary 
    for nontraditional and commercial item contractors, universities, 
    and nonprofit research entities to modify commercial products or 
    services to meet Department of Defense requirements.
        (5) Recommendations for increasing integration of the national 
    technology and industrial base that supplies defense articles to 
    the Armed Forces and enhancing allied interoperability of forces 
    through changes to the text or the implementation of--
            (A) section 126.5 of title 22, Code of Federal Regulations 
        (relating to exemptions that are applicable to Canada under the 
        International Traffic in Arms Regulations);
            (B) the Treaty Between the Government of the United States 
        of America and the Government of Australia Concerning Defense 
        Trade Cooperation, done at Sydney on September 5, 2007;
            (C) the Treaty Between the Government of the United States 
        of America and the Government of the United Kingdom of Great 
        Britain and Northern Ireland Concerning Defense Trade 
        Cooperation, done at Washington and London on June 21 and 26, 
        2007; and
            (D) any other agreements among the countries comprising the 
        national technology and industrial base.
    (b) Amendment to Definition of National Technology and Industrial 
Base.--Section 2500(1) of title 10, United States Code, is amended by 
inserting ``, the United Kingdom of Great Britain and Northern Ireland, 
Australia,'' after ``United States''.
    (c) Reporting Requirement.--The Secretary of Defense shall report 
on the progress of implementing the plan in subsection (a) in the 
report required under section 2504 of title 10, United States Code.
    SEC. 882. INTEGRATION OF CIVIL AND MILITARY ROLES IN ATTAINING 
      NATIONAL TECHNOLOGY AND INDUSTRIAL BASE OBJECTIVES.
    Section 2501(b) of title 10, United States Code, is amended by 
striking ``It is the policy of Congress that the United States attain'' 
and inserting ``The Secretary of Defense shall ensure that the United 
States attains''.
    SEC. 883. PILOT PROGRAM FOR DISTRIBUTION SUPPORT AND SERVICES FOR 
      WEAPON SYSTEMS CONTRACTORS.
    (a) Authority.--The Secretary of Defense may carry out a six-year 
pilot program under which the Secretary may make available storage and 
distribution services support to a contractor in support of the 
performance by the contractor of a contract for the production, 
modification, maintenance, or repair of a weapon system that is entered 
into by the Department of Defense.
    (b) Support Contracts.--
        (1) In general.--Any storage and distribution services to be 
    provided under the pilot program under this section to a contractor 
    in support of the performance of a contract described in subsection 
    (a) shall be provided under a separate contract that is entered 
    into by the Director of the Defense Logistics Agency with that 
    contractor. The requirements of section 2208(h) of title 10, United 
    States Code, and the regulations prescribed pursuant to such 
    section shall apply to any such separate support contract between 
    the Director of the Defense Logistics Agency and the contractor.
        (2) Limitation.--Not more than five support contracts between 
    the Director and the contractor may be awarded under the pilot 
    program.
    (c) Scope of Support and Services.--The storage and distribution 
support services that may be provided under this section in support of 
the performance of a contract described in subsection (a) are storage 
and distribution of materiel and repair parts necessary for the 
performance of that contract.
    (d) Regulations.--Before exercising the authority under the pilot 
program under this section, the Secretary of Defense shall prescribe in 
regulations such requirements, conditions, and restrictions as the 
Secretary determines appropriate to ensure that storage and 
distribution services are provided under the pilot program only when it 
is in the best interests of the United States to do so. The regulations 
shall include, at a minimum, the following:
        (1) A requirement for the solicitation of offers for a contract 
    described in subsection (a), for which storage and distribution 
    services are to be made available under the pilot program, 
    including--
            (A) a statement that the storage and distribution services 
        are to be made available under the authority of the pilot 
        program under this section to any contractor awarded the 
        contract, but only on a basis that does not require acceptance 
        of the support and services; and
            (B) a description of the range of the storage and 
        distribution services that are to be made available to the 
        contractor.
        (2) A requirement for the rates charged a contractor for 
    storage and distribution services provided to a contractor under 
    the pilot program to reflect the full cost to the United States of 
    the resources used in providing the support and services, including 
    the costs of resources used, but not paid for, by the Department of 
    Defense.
        (3) With respect to a contract described in subsection (a) that 
    is being performed for a department or agency outside the 
    Department of Defense, a prohibition, in accordance with applicable 
    contracting procedures, on the imposition of any charge on that 
    department or agency for any effort of Department of Defense 
    personnel or the contractor to correct deficiencies in the 
    performance of such contract.
        (4) A prohibition on the imposition of any charge on a 
    contractor for any effort of the contractor to correct a deficiency 
    in the performance of storage and distribution services provided to 
    the contractor under this section.
        (5) A requirement that storage and distribution services 
    provided under the pilot program may not interfere with the mission 
    of the Defense Logistics Agency or of any military department 
    involved with the pilot program.
        (6) A requirement that any support contract for storage and 
    distribution services entered into under the pilot program shall 
    include a clause to indemnify the Government against any failure by 
    the contractor to perform the support contract, and to remain 
    responsible for performance of the primary contract.
    (e) Relationship to Treaty Obligations.--The Secretary shall ensure 
that the exercise of authority under the pilot program under this 
section does not conflict with any obligation of the United States 
under any treaty or other international agreement.
    (f) Reports.--
        (1) Secretary of defense.--Not later than the end of the fourth 
    year of operation of the pilot program, the Secretary of Defense 
    shall submit to the Committees on Armed Services of the Senate and 
    House of Representatives a report describing--
            (A) the cost effectiveness for both the Government and 
        industry of the pilot program; and
            (B) how support contracts under the pilot program affected 
        meeting the requirements of primary contracts.
        (2) Comptroller general.--Not later than the end of the fifth 
    year of operation of the pilot program, the Comptroller General of 
    the United States shall review the report of the Secretary under 
    paragraph (1) for sufficiency and provide such recommendations in a 
    report to the Committees on Armed Services of the Senate and House 
    of Representatives as the Comptroller General considers 
    appropriate.
    (g) Sunset.--The authority to enter into contracts under the pilot 
program shall expire six years after the date of the enactment of this 
Act. Any contracts entered into before such date shall continue in 
effect according to their terms.
    SEC. 884. NONTRADITIONAL AND SMALL CONTRACTOR INNOVATION 
      PROTOTYPING PROGRAM.
    (a) In General.--The Secretary of Defense shall conduct a pilot 
program for nontraditional defense contractors and small business 
concerns to design, develop, and demonstrate innovative prototype 
military platforms of significant scope for the purpose of 
demonstrating new capabilities that could provide alternatives to 
existing acquisition programs and assets. The Secretary shall establish 
the pilot program within the Departments of the Army, Navy, and Air 
Force, the Missile Defense Agency, and the United States Special 
Operations Command.
    (b) Funding.--There is authorized to be made available $250,000,000 
from the Rapid Prototyping Fund established under section 804(d) of the 
National Defense Authorization Act for Fiscal Year 2016 (Public Law 
114-92; 10 U.S.C. 2302 note) to carry out the pilot program.
    (c) Plan.--
        (1) In general.--The Secretary of Defense shall submit to the 
    congressional defense committees, concurrent with the budget for 
    the Department of Defense for fiscal year 2018, as submitted to 
    Congress pursuant to section 1105 of title 31, United States Code, 
    a plan to fund and carry out the pilot program in future years.
        (2) Elements.--The plan submitted under paragraph (1) shall 
    consider maximizing use of--
            (A) broad agency announcements or other merit-based 
        selection procedures;
            (B) the Department of Defense Acquisition Challenge Program 
        authorized under section 2359b of title 10, United States Code;
            (C) the foreign comparative test program;
            (D) projects carried out under the Rapid Innovation Program 
        of the Department of Defense or pursuant to a Phase III 
        agreement (as defined in section 9(r)(2) of the Small Business 
        Act (15 U.S.C. 638(r)(2))); and
            (E) streamlined procedures for acquisition provided under 
        section 804 of the National Defense Authorization Act for 
        Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note) and 
        procedures for alternative acquisition pathways established 
        under section 805 of such Act (10 U.S.C. 2302 note).
    (d) Programs To Be Included.--As part of the pilot program, the 
Secretary of Defense shall allocate up to $50,000,000 on a fixed price 
contractual basis for fiscal year 2017 or pursuant to the plan 
submitted under subsection (c) for demonstrations of the following 
capabilities:
        (1) Swarming of multiple unmanned air vehicles.
        (2) Unmanned, modular fixed-wing aircraft that can be rapidly 
    adapted to multiple missions and serve as a fifth generation 
    weapons augmentation platform.
        (3) Vertical takeoff and landing tiltrotor aircraft.
        (4) Integration of a directed energy weapon on an air, sea, or 
    ground platform.
        (5) Swarming of multiple unmanned underwater vehicles.
        (6) Commercial small synthetic aperture radar (SAR) satellites 
    with on-board machine learning for automated, real-time feature 
    extraction and predictive analytics.
        (7) Active protection system to defend against rocket-propelled 
    grenades and anti-tank missiles.
        (8) Defense against hypersonic weapons, including sensors.
        (9) Other systems as designated by the Secretary.
    (e) Definitions.--In this section:
        (1) Nontraditional defense contractor.--The term 
    ``nontraditional defense contractor'' has the meaning given the 
    term in section 2302(9) of title 10, United States Code.
        (2) Small business concern.--The term ``small business 
    concern'' has the meaning given the term in section 3 of the Small 
    Business Act (15 U.S.C. 632).
    (f) Sunset.--The authority under this section expires at the close 
of September 30, 2026.

                       Subtitle H--Other Matters

    SEC. 885. REPORT ON BID PROTESTS.
    (a) Report Required.--Not later than 270 days after the date of the 
enactment of this Act, the Secretary of Defense shall enter into a 
contract with an independent research entity that is a not-for-profit 
entity or a federally funded research and development center with 
appropriate expertise and analytical capability to carry out a 
comprehensive study on the prevalence and impact of bid protests on 
Department of Defense acquisitions, including protests filed with 
contracting agencies, the Government Accountability Office, and the 
Court of Federal Claims.
    (b) Elements.--The report required by subsection (a) shall cover 
Department of Defense contracts and include, at a minimum, the 
following elements:
        (1) For employees of the Department, including the contracting 
    officers, program executive officers, and program managers, the 
    extent and manner in which the bid protest system affects or is 
    perceived to affect--
            (A) the development of a procurement to avoid protests 
        rather than improve acquisition;
            (B) the quality or quantity of pre-proposal discussions, 
        discussions of proposals, or post-award debriefings;
            (C) the decision to use lowest price technically acceptable 
        procurement methods;
            (D) the decision to make multiple awards or encourage 
        teaming;
            (E) the ability to meet an operational or mission need or 
        address important requirements;
            (F) the decision to use sole source award methods; and
            (G) the decision to exercise options on existing contracts.
        (2) With respect to a company bidding on contracts or task or 
    delivery orders, the extent and manner in which the bid protest 
    system affects or is perceived to affect--
            (A) the decision to offer a bid or proposal on single award 
        or multiple award contracts when the company is the incumbent 
        contractor;
            (B) the decision to offer a bid or proposal on single award 
        or multiple award contracts when the company is not the 
        incumbent contractor;
            (C) the ability to engage in pre-proposal discussions, 
        discussions of proposals, or post -award debriefings;
            (D) the decision to participate in a team or joint venture; 
        and
            (E) the decision to file a protest with the agency 
        concerned, the Government Accountability Office, or the Court 
        of Federal Claims.
        (3) A description of trends in the number of bid protests filed 
    with agencies, the Government Accountability Office, and Federal 
    courts, the effectiveness of each forum for contracts and task or 
    delivery orders, and the rate of such bid protests compared to 
    contract obligations and the number of contracts.
        (4) An analysis of bid protests filed by incumbent contractors, 
    including--
            (A) the rate at which such protesters are awarded bridge 
        contracts or contract extensions over the period that the 
        protest remains unresolved; and
            (B) an assessment of the cost and schedule impact of 
        successful and unsuccessful bid protests filed by incumbent 
        contractors on contracts for services with a value in excess of