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

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Public Law No: 114-328 (12/23/2016)

 
[114th Congress Public Law 328]
[From the U.S. Government Publishing Office]


<DOC>


[[Page 1999]]

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2017

[[Page 130 STAT. 2000]]

Public Law 114-328
114th Congress

                                 An Act


 
To authorize appropriations for fiscal year 2017 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes. <<NOTE: Dec. 23, 
                          2016 -  [S. 2943]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: National Defense 
Authorization Act for Fiscal Year 2017.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2017''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Authorization of appropriations.

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

[[Page 130 STAT. 2001]]

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

                     Subtitle D--Air Force Programs

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

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

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

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Reports and Other Matters

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

[[Page 130 STAT. 2002]]

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Authorization of appropriations.

                   Subtitle B--Energy and Environment

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

                  Subtitle C--Logistics and Sustainment

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

                           Subtitle D--Reports

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

                        Subtitle E--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.

[[Page 130 STAT. 2003]]

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                Subtitle B--Reserve Component Management

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

                 Subtitle C--General Service Authorities

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

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

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

[[Page 130 STAT. 2004]]

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

        Subtitle E--Military Justice and Legal Assistance Matters

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

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

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

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

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

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

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

                   Subtitle I--Decorations and Awards

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

[[Page 130 STAT. 2005]]

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

           Subtitle J--Miscellaneous Reports and Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

        Part I--Amendments in Connection With Retired Pay Reform

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

[[Page 130 STAT. 2006]]

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

                         Part II--Other Matters

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

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

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

        Subtitle A--Reform of TRICARE and Military Health System

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

                 Subtitle B--Other Health Care Benefits

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

                 Subtitle C--Health Care Administration

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

[[Page 130 STAT. 2007]]

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

                  Subtitle D--Reports and Other Matters

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

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

              Subtitle A--Acquisition Policy and Management

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

          Subtitle B--Department of Defense Acquisition Agility

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

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

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

[[Page 130 STAT. 2008]]

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

  Subtitle D--Provisions Relating to Major Defense Acquisition Programs

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

        Subtitle E--Provisions Relating to Acquisition Workforce

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

[[Page 130 STAT. 2009]]

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

           Subtitle F--Provisions Relating to Commercial Items

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

                   Subtitle G--Industrial Base Matters

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

                        Subtitle H--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

[[Page 130 STAT. 2010]]

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

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

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

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

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

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

          Subtitle E--Strategies, Reports, and Related Matters

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

                        Subtitle F--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                   Subtitle B--Counterdrug Activities

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

[[Page 130 STAT. 2011]]

                 Subtitle C--Naval Vessels and Shipyards

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

                      Subtitle D--Counterterrorism

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

          Subtitle E--Miscellaneous Authorities and Limitations

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

                     Subtitle F--Studies and Reports

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

[[Page 130 STAT. 2012]]

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

                        Subtitle G--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

           Subtitle A--Department of Defense Matters Generally

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

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

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

[[Page 130 STAT. 2013]]

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

                   Subtitle C--Governmentwide Matters

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

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

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

        Subtitle B--Matters Relating to Afghanistan and Pakistan

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

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

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

[[Page 130 STAT. 2014]]

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

         Subtitle D--Matters Relating to the Russian Federation

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

    Subtitle E--Reform of Department of Defense Security Cooperation

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

                   Subtitle F--Human Rights Sanctions

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

                    Subtitle G--Miscellaneous Reports

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

                        Subtitle H--Other Matters

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

[[Page 130 STAT. 2015]]

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

                TITLE XIII--COOPERATIVE THREAT REDUCTION

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

                     TITLE XIV--OTHER AUTHORIZATIONS

                      Subtitle A--Military Programs

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

                 Subtitle B--National Defense Stockpile

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

              Subtitle C--Chemical Demilitarization Matters

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

                        Subtitle D--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

                      Subtitle B--Financial Matters

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

[[Page 130 STAT. 2016]]

           Subtitle C--Limitations, Reports, and Other Matters

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

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

                      Subtitle A--Space Activities

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

  Subtitle B--Defense Intelligence and Intelligence-Related Activities

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

                 Subtitle C--Cyberspace-Related Matters

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

[[Page 130 STAT. 2017]]

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

                       Subtitle D--Nuclear Forces

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

                  Subtitle E--Missile Defense Programs

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

                        Subtitle F--Other Matters

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

          TITLE XVII--GUAM WORLD WAR II LOYALTY RECOGNITION ACT

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

[[Page 130 STAT. 2018]]

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

       TITLE XVIII--MATTERS RELATING TO SMALL BUSINESS PROCUREMENT

   Subtitle A--Improving Transparency and Clarity for Small Businesses

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

      Subtitle B--Clarifying the Roles of Small Business Advocates

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

       Subtitle C--Strengthening Opportunities for Competition in 
                             Subcontracting

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

                  Subtitle D--Miscellaneous Provisions

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

      Subtitle E--Improving Cyber Preparedness for Small Businesses

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

         TITLE XIX--DEPARTMENT OF HOMELAND SECURITY COORDINATION

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

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

                  TITLE XXI--ARMY MILITARY CONSTRUCTION

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

[[Page 130 STAT. 2019]]

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

                 TITLE XXII--NAVY MILITARY CONSTRUCTION

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

              TITLE XXIII--AIR FORCE MILITARY CONSTRUCTION

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

           TITLE XXIV--DEFENSE AGENCIES MILITARY CONSTRUCTION

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

                    TITLE XXV--INTERNATIONAL PROGRAMS

   Subtitle A--North Atlantic Treaty Organization Security Investment 
                                 Program

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

             Subtitle B--Host Country In-Kind Contributions

Sec. 2511. Republic of Korea funded construction projects.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

 Subtitle A--Project Authorizations and Authorization of Appropriations

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

                        Subtitle B--Other Matters

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

          TITLE XXVII--BASE REALIGNMENT AND CLOSURE ACTIVITIES

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

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

  Subtitle A--Military Construction Program and Military Family Housing

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

[[Page 130 STAT. 2020]]

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

         Subtitle B--Real Property and Facilities Administration

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

                      Subtitle C--Land Conveyances

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

         Subtitle D--Military Memorials, Monuments, and Museums

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

               Subtitle E--Designations and Other Matters

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

    TITLE XXIX--OVERSEAS CONTINGENCY OPERATIONS MILITARY CONSTRUCTION

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

[[Page 130 STAT. 2021]]

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

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

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

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

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

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

        Subtitle A--National Security Programs and Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

                      Subtitle C--Plans and Reports

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

[[Page 130 STAT. 2022]]

Sec. 3138. Report on United States nuclear deterrence.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                      TITLE XXXV--MARITIME MATTERS

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

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

           Subtitle B--Pribilof Islands Transition Completion

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

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

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

                       DIVISION D--FUNDING TABLES

Sec. 4001. Authorization of amounts in funding tables.

                         TITLE XLI--PROCUREMENT

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

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

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

[[Page 130 STAT. 2023]]

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

                 TITLE XLIII--OPERATION AND MAINTENANCE

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

                     TITLE XLIV--MILITARY PERSONNEL

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

                     TITLE XLV--OTHER AUTHORIZATIONS

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

                    TITLE XLVI--MILITARY CONSTRUCTION

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

      TITLE XLVII--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Sec. 4701. Department of Energy national security programs.

           DIVISION E--UNIFORM CODE OF MILITARY JUSTICE REFORM

Sec. 5001. Short title.

                      TITLE LI--GENERAL PROVISIONS

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

                  TITLE LII--APPREHENSION AND RESTRAINT

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

                   TITLE LIII--NON-JUDICIAL PUNISHMENT

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

                  TITLE LIV--COURT-MARTIAL JURISDICTION

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

                 TITLE LV--COMPOSITION OF COURTS-MARTIAL

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

                     TITLE LVI--PRE-TRIAL PROCEDURE

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

[[Page 130 STAT. 2024]]

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

                       TITLE LVII--TRIAL PROCEDURE

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

                         TITLE LVIII--SENTENCES

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

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

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

                       TITLE LX--PUNITIVE ARTICLES

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

[[Page 130 STAT. 2025]]

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

                   TITLE LXI--MISCELLANEOUS PROVISIONS

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

      TITLE LXII--MILITARY JUSTICE REVIEW PANEL AND ANNUAL REPORTS

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

         TITLE LXIII--CONFORMING AMENDMENTS AND EFFECTIVE DATES

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

SEC. 3. <<NOTE: 10 USC 101 note.>>  CONGRESSIONAL DEFENSE 
                    COMMITTEES.

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

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

[[Page 130 STAT. 2026]]

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Authorization of appropriations.

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

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

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

               Subtitle A--Authorization of Appropriations

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

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

[[Page 130 STAT. 2027]]

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

                        Subtitle B--Army Programs

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

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

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

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

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

[[Page 130 STAT. 2028]]

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

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

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

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

[[Page 130 STAT. 2029]]

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

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

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

                        Subtitle C--Navy Programs

SEC. 121. DETERMINATION OF VESSEL DELIVERY DATES.

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

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

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

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

[[Page 130 STAT. 2030]]

on or after the date of the enactment of this section using amounts 
authorized to be appropriated for the Department of Defense for 
shipbuilding and conversion, Navy.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter <<NOTE: 10 USC 7291 prec.>> is amended 
        by inserting after the item relating to section 7300 the 
        following new item:

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

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

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

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

[[Page 130 STAT. 2031]]

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

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

[[Page 130 STAT. 2032]]

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

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

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

[[Page 130 STAT. 2033]]

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

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

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

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

[[Page 130 STAT. 2034]]

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

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

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

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

[[Page 130 STAT. 2035]]

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

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

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

[[Page 130 STAT. 2036]]

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

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

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

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

[[Page 130 STAT. 2037]]

                     Subtitle D--Air Force Programs

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

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

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

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

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

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

[[Page 130 STAT. 2038]]

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

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

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

[[Page 130 STAT. 2039]]

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

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

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

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

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

[[Page 130 STAT. 2040]]

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

SEC. 141. STANDARDIZATION OF 5.56MM RIFLE AMMUNITION.

    (a) Report.--If, on the date that is 180 days after the date of the 
enactment of this Act, the Army and the Marine Corps are using in combat 
two different types of enhanced 5.56mm rifle ammunition, the Secretary 
of Defense shall, on such date, submit to the congressional defense 
committees a report explaining the reasons that the Army and the Marine 
Corps are using different types of such ammunition.
    (b) Standardization Requirement.--Except as provided in subsection 
(c), not later than one year after the date of the enactment of this 
Act, the Secretary of Defense shall ensure that the Army and the Marine 
Corps are using in combat one standard type of enhanced 5.56mm rifle 
ammunition.
    (c) Exception.--Subsection (b) shall not apply in a case in which 
the Secretary of Defense--
            (1) determines that a state of emergency requires the Army 
        and the Marine Corps to use in combat different types of 
        enhanced 5.56mm rifle ammunition; and
            (2) certifies to the congressional defense committees that 
        such a determination has been made.
SEC. 142. <<NOTE: 10 USC 2430 note.>>  FIRE SUPPRESSANT AND FUEL 
                        CONTAINMENT STANDARDS FOR CERTAIN 
                        VEHICLES.

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

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

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

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

[[Page 130 STAT. 2041]]

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

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

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

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

[[Page 130 STAT. 2042]]

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

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

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

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

[[Page 130 STAT. 2043]]

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

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

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

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

[[Page 130 STAT. 2044]]

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

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

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

[[Page 130 STAT. 2045]]

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

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Reports and Other Matters

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

[[Page 130 STAT. 2046]]

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

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. <<NOTE: 10 USC 2358 note.>>  LABORATORY QUALITY 
                        ENHANCEMENT PROGRAM.

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

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

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

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

[[Page 130 STAT. 2047]]

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

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

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

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

[[Page 130 STAT. 2048]]

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

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

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

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

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

[[Page 130 STAT. 2049]]

``Sec. 2196. Manufacturing engineering education program

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

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

[[Page 130 STAT. 2050]]

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

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

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

[[Page 130 STAT. 2051]]

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

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

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

    (a) Increased Micro-purchase Threshold for Basic Research Programs 
and Activities of the Department of Defense Science and Technology 
Reinvention Laboratories.--
            (1) In general.--Chapter 137 of title 10, United States 
        Code, as amended by section 821(a), is further amended by adding 
        at the end the following new section:
``Sec. 2339. <<NOTE: 10 USC 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 <<NOTE: 10 USC 2301 
        prec.>> section 821b, is further amended by adding at the end 
        the following new item:

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

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

[[Page 130 STAT. 2052]]

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

    ``(2) For purposes of this section, the micro-purchase threshold for 
procurement activities administered under sections 6303 through 6305 of 
title 31 by institutions of higher education (as defined in section 
101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)), or 
related or affiliated nonprofit entities, or by nonprofit research 
organizations or independent research institutes is--
            ``(A) $10,000; or
            ``(B) such higher threshold as determined appropriate by the 
        head of the relevant executive agency and consistent with clean 
        audit findings under chapter 75 of title 31, internal 
        institutional risk assessment, or State law.''; and
            (2) in subsections (d) and (e), by striking ``not greater 
        than $3,000'' and inserting ``with a price not greater than the 
        micro-purchase threshold''.
SEC. 218. <<NOTE: 50 USC 1527 note.>>  IMPROVED BIOSAFETY FOR 
                        HANDLING OF SELECT AGENTS AND TOXINS.

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

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

[[Page 130 STAT. 2053]]

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

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

    (f) Definitions.--In this section:
            (1) The term ``biological select agent and toxin'' means any 
        agent or toxin identified under--
                    (A) section 331.3 of title 7, Code of Federal 
                Regulations;
                    (B) section 121.3 or section 121.4 of title 9, Code 
                of Federal Regulations; or
                    (C) section 73.3 or section 73.4 of title 42, Code 
                of Federal Regulations.
            (2) The term ``covered facility'' means any facility of the 
        Department of Defense that produces biological select agents and 
        toxins.
SEC. 219. <<NOTE: 10 USC 2431 note.>>  DESIGNATION OF DEPARTMENT 
                        OF DEFENSE SENIOR OFFICIAL WITH PRINCIPAL 
                        RESPONSIBILITY FOR DIRECTED ENERGY 
                        WEAPONS.

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

[[Page 130 STAT. 2054]]

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

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

[[Page 130 STAT. 2055]]

            (3) Funding.--The Secretary may make available such funds to 
        the Office for basic research, applied research, advanced 
        technology development, prototyping, studies and analyses, and 
        organizational support as the Secretary considers appropriate to 
        support the efficient and effective development of directed 
        energy systems and technologies and transition of those systems 
        and technologies into acquisition programs or operational use.
SEC. 220. <<NOTE: 10 USC 3013 note.>>  RESTRUCTURING OF THE 
                        DISTRIBUTED COMMON GROUND SYSTEM OF THE 
                        ARMY.

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

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

[[Page 130 STAT. 2056]]

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

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

[[Page 130 STAT. 2057]]

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

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

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

[[Page 130 STAT. 2058]]

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

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

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

[[Page 130 STAT. 2059]]

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

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

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

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

                  Subtitle C--Reports and Other Matters

SEC. 231. <<NOTE: 10 USC 2302 note.>>  STRATEGY FOR ASSURED ACCESS 
                        TO TRUSTED MICROELECTRONICS.

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

[[Page 130 STAT. 2060]]

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

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

[[Page 130 STAT. 2061]]

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

    (f) Definitions.--In this section:
            (1) The term ``assured'' refers, with respect to 
        microelectronics, to the ability of the Department of Defense to 
        guarantee availability of microelectronics parts at the 
        necessary volumes and with the performance characteristics 
        required to meet the needs of the Department of Defense.
            (2) The terms ``trust'' and ``trusted'' refer, with respect 
        to microelectronics, to the ability of the Department of Defense 
        to have confidence that the microelectronics function as 
        intended and are free of exploitable vulnerabilities, either 
        intentionally or unintentionally designed or inserted as part of 
        the system at any time during its life cycle.
SEC. 232. <<NOTE: 10 USC 2223 note.>>  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. <<NOTE: 10 USC 2358 note.>>  PILOT PROGRAM FOR THE 
                        ENHANCEMENT OF THE RESEARCH, DEVELOPMENT, 
                        TEST, AND EVALUATION CENTERS OF THE 
                        DEPARTMENT OF DEFENSE.

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

[[Page 130 STAT. 2062]]

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

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

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

[[Page 130 STAT. 2063]]

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

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

[[Page 130 STAT. 2064]]

                under subsection (b), including justifications for such 
                disapprovals.
                    (C) A description of the methods implemented 
                pursuant to subsection (c).
                    (D) A description of the methods that were proposed 
                pursuant to paragraph (1) of subsection (c) but 
                disapproved under paragraph (2) of such subsection.
                    (E) An assessment of how methods implemented 
                pursuant to subsection (c) have contributed to the 
                objectives identified in subparagraphs (A), (B), and (C) 
                of paragraph (1) of such subsection.
SEC. 234. <<NOTE: 10 USC 113 note.>>  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. <<NOTE: 10 USC 2367 note.>>  235. PILOT PROGRAM ON DISCLOSURE 
                        OF CERTAIN SENSITIVE INFORMATION TO 
                        FEDERALLY FUNDED RESEARCH AND DEVELOPMENT 
                        CENTERS.

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

[[Page 130 STAT. 2065]]

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

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

[[Page 130 STAT. 2066]]

    (g) Sensitive Information Defined.--In this section, the term 
``sensitive information'' means confidential commercial, financial, or 
proprietary information, technical data, contract performance, contract 
performance evaluation, management, and administration data, or other 
privileged information owned by other contractors of the Department of 
Defense that is exempt from public disclosure under section 552(b)(4) of 
title 5, United States Code, or which would otherwise be prohibited from 
disclosure under section 1832 or 1905 of title 18, United States Code.
SEC. 236. <<NOTE: 10 USC 2358 note.>>  PILOT PROGRAM ON ENHANCED 
                        INTERACTION BETWEEN THE DEFENSE ADVANCED 
                        RESEARCH PROJECTS AGENCY AND THE SERVICE 
                        ACADEMIES.

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

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

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

[[Page 130 STAT. 2067]]

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

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

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

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

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

[[Page 130 STAT. 2068]]

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

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

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

[[Page 130 STAT. 2069]]

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

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

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

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

[[Page 130 STAT. 2070]]

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

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

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

[[Page 130 STAT. 2071]]

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

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Authorization of appropriations.

                   Subtitle B--Energy and Environment

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

[[Page 130 STAT. 2072]]

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

                  Subtitle C--Logistics and Sustainment

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

                           Subtitle D--Reports

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

                        Subtitle E--Other Matters

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

               Subtitle A--Authorization of Appropriations

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

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

                   Subtitle B--Energy and Environment

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

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

[[Page 130 STAT. 2073]]

            (3) by redesignating paragraphs (9) and (11) as paragraphs 
        (3), and (4), respectively; and
            (4) by inserting after paragraph (1), the following:
            ``(2) A description of the energy savings, return on 
        investment, and enhancements to installation mission assurance 
        realized by the fulfillment of the goals described in paragraph 
        (1).''.
SEC. 312. <<NOTE: 42 USC 17142 note.>>  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. <<NOTE: 10 USC 2302 note.>>  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. <<NOTE: 10 USC 4681 note prec.>>  ALTERNATIVE 
                        TECHNOLOGIES FOR MUNITIONS DISPOSAL.

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

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

[[Page 130 STAT. 2074]]

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

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

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

                  Subtitle C--Logistics and Sustainment

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

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

[[Page 130 STAT. 2075]]

``Sec. 10102a. <<NOTE: 10 USC 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 <<NOTE: 10 USC 10101 
        prec.>> 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. <<NOTE: 10 USC 2228 note.>>  REVISION OF GUIDANCE 
                        RELATING TO CORROSION CONTROL AND 
                        PREVENTION EXECUTIVES.

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

[[Page 130 STAT. 2076]]

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

    (b) Corrosion Control and Prevention Executive Defined.--In this 
section, the term ``corrosion control and prevention executive'' means 
the employee of a military department designated as the corrosion 
control and prevention executive of the department under section 903(a) 
of the Duncan Hunter National Defense Authorization Act for Fiscal Year 
2009 (Public Law 110-417; 10 U.S.C. 2228 note).
SEC. 323. <<NOTE: 10 USC 4551 note.>>  PILOT PROGRAM FOR INCLUSION 
                        OF CERTAIN INDUSTRIAL PLANTS IN THE 
                        ARMAMENT RETOOLING AND MANUFACTURING 
                        SUPPORT INITIATIVE.

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

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

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

[[Page 130 STAT. 2077]]

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

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

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

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

[[Page 130 STAT. 2078]]

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

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

                           Subtitle D--Reports

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

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

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

[[Page 130 STAT. 2079]]

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

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

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

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

                        Subtitle E--Other Matters

SEC. 341. AIR NAVIGATION MATTERS.

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

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

[[Page 130 STAT. 2080]]

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

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

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

[[Page 130 STAT. 2081]]

        of title 32, Code of Federal Regulations, as in effect on 
        January 6, 2014.
            ``(2) Unacceptable risk to the national security of the 
        united states.--The term `unacceptable risk to the national 
        security of the United States' has the meaning given the term in 
        section 211.3 of title 32, Code of Federal Regulations, as in 
        effect on January 6, 2014.''.
            (4) Conforming amendments.--
                    (A) Section heading.--Section 44718 of title 49, 
                United States Code, is amended in the section heading by 
                inserting ``or national security'' after ``air 
                commerce''.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 447 of title 49, United States 
                Code, is <<NOTE: 49 USC 44701 prec.>> amended by 
                striking the item relating to section 44718 and 
                inserting the following:

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

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

[[Page 130 STAT. 2082]]

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

    (a) Required Contract Clause.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, is amended by adding at the end the following new section:
``Sec. 2410r. <<NOTE: 10 USC 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 <<NOTE: 10 USC 2381 prec.>> 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. <<NOTE: 10 USC 2701 note.>>  PLAN, FUNDING DOCUMENTS, 
                        AND MANAGEMENT REVIEW RELATING TO 
                        EXPLOSIVE ORDNANCE DISPOSAL.

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

[[Page 130 STAT. 2083]]

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

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

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

[[Page 130 STAT. 2084]]

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

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

    (e) Definitions.--In this section:
            (1) Explosive ordnance.--The term ``explosive ordnance'' 
        means any munition containing explosives, nuclear fission or 
        fusion materials, or biological or chemical agents, including--
                    (A) bombs and warheads;
                    (B) guided and ballistic missiles;
                    (C) artillery, mortar, rocket, and small arms 
                munitions;
                    (D) mines, torpedoes, and depth charges;
                    (E) demolition charges;
                    (F) pyrotechnics;
                    (G) clusters and dispensers;
                    (H) cartridge and propellant actuated devices;
                    (I) electro-explosive devices; and
                    (J) clandestine and improvised explosive devices.
            (2) Disposal.--The term ``disposal'' means, with respect to 
        explosive ordnance, the detection, identification, field 
        evaluation, defeat, disablement, or rendering safe, recovery and 
        exploitation, and final disposition of the ordnance.
SEC. 344. <<NOTE: 10 USC 2576a note.>>  PROCESS FOR COMMUNICATING 
                        AVAILABILITY OF SURPLUS AMMUNITION.

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

[[Page 130 STAT. 2085]]

SEC. 345. <<NOTE: 10 USC 2821 note.>>  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. <<NOTE: 10 USC 113 note.>>  ACCESS TO MILITARY 
                        INSTALLATIONS BY TRANSPORTATION COMPANIES.

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

[[Page 130 STAT. 2086]]

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

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

    (d) Definitions.--In this section:
            (1) Transportation company.--The term ``transportation 
        company'' means a corporation, partnership, sole proprietorship, 
        or other entity outside of the Department of Defense that 
        provides a commercial transportation service to a rider, 
        including a company that uses a digital network to connect 
        riders to covered drivers for the purpose of providing such 
        transportation service.
            (2) Covered driver.--The term ``covered driver''--
                    (A) means an individual--
                          (i) who is an employee of a transportation 
                      company or who is affiliated with a transportation 
                      company; and
                          (ii) who provides a commercial transportation 
                      service to a rider; and
                    (B) includes a vehicle operated by such individual 
                for the purpose of providing such service.
SEC. 347. <<NOTE: 10 USC 1030 note prec.>>  ACCESS TO WIRELESS 
                        HIGH-SPEED INTERNET AND NETWORK 
                        CONNECTIONS FOR CERTAIN MEMBERS OF THE 
                        ARMED FORCES.

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

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

[[Page 130 STAT. 2087]]

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

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

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

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

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

[[Page 130 STAT. 2088]]

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

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

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

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

[[Page 130 STAT. 2089]]

                    (D) any other matters the Comptroller General 
                determines are relevant.
            (2) Briefing.--Not later than 60 days after the date on 
        which the Secretary of the Air Force submits the report under 
        subsection (b) and prior to submitting the review required under 
        paragraph (1), the Comptroller General shall provide a briefing 
        to the congressional defense committees on the preliminary 
        results of the review conducted under such paragraph.
SEC. 352. <<NOTE: 10 USC 2641b note.>>  STUDY ON SPACE-AVAILABLE 
                        TRAVEL SYSTEM OF THE DEPARTMENT OF 
                        DEFENSE.

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

[[Page 130 STAT. 2090]]

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

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

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

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

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

[[Page 130 STAT. 2091]]

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                        Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

[[Page 130 STAT. 2092]]

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

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

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

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

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

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

[[Page 130 STAT. 2093]]

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

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

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

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

               Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

[[Page 130 STAT. 2094]]

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                Subtitle B--Reserve Component Management

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

                 Subtitle C--General Service Authorities

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

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

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

        Subtitle E--Military Justice and Legal Assistance Matters

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

[[Page 130 STAT. 2095]]

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

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

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

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

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

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

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

                   Subtitle I--Decorations and Awards

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

[[Page 130 STAT. 2096]]

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

           Subtitle J--Miscellaneous Reports and Other Matters

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

                  Subtitle A--Officer Personnel Policy

SEC. 501. <<NOTE: 10 USC 525 note.>>  REDUCTION IN NUMBER OF 
                        GENERAL AND FLAG OFFICERS ON ACTIVE DUTY 
                        AND AUTHORIZED STRENGTH AFTER DECEMBER 31, 
                        2022, OF SUCH GENERAL AND FLAG OFFICERS.

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

[[Page 130 STAT. 2097]]

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

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

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

[[Page 130 STAT. 2098]]

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

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

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

[[Page 130 STAT. 2099]]

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

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

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

[[Page 130 STAT. 2100]]

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

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

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

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

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

[[Page 130 STAT. 2101]]

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

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

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

[[Page 130 STAT. 2102]]

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

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

    ``(k) Cessation of Applicability.--The provisions of this section 
shall not apply to number of general officers and flag officers in the 
armed forces after December 31, 2022. For provisions applicable to the 
number of such officers after that date, see section 526a of this 
title.''.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 32 of title 10, <<NOTE: 10 USC 521 
        prec.>> 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 <<NOTE: 10 USC 151 
        prec.>> 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 <<NOTE: 10 USC 201 
        prec.>> is amended by striking the item relating to section 203.

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

[[Page 130 STAT. 2103]]

    (f) Senior Members of Military Staff Committee of UN.--Section 711 
of title 10, United States Code, is amended by striking the second 
sentence.
    (g) Chief of Staff to President.--
            (1) In general.--Section 720 of title 10, United States 
        Code, is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 41 of such title <<NOTE: 10 USC 711 
        prec.>> 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 <<NOTE: 10 USC 711 
        prec.>> 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 <<NOTE: 10 USC 741 
        prec.>> 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 <<NOTE: 10 USC 3031 
        prec.>> is amended by striking the item relating to section 
        3039.

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

[[Page 130 STAT. 2104]]

``Sec. 3070. Army Medical Specialist Corps: organization; Chief''.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 307 of such title <<NOTE: 10 USC 3061 
        prec.>> 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 <<NOTE: 10 USC 3061 
        prec.>> 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 <<NOTE: 10 USC 3531 
        prec.>> is amended by striking the item relating to section 
        3543.

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

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

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

[[Page 130 STAT. 2105]]

            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 513 of such title <<NOTE: 10 USC 5131 
        prec.>> 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 <<NOTE: 10 USC 5131 
        prec.>> is amended by striking the item relating to section 5141 
        and inserting the following new item:

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

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

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

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

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

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

[[Page 130 STAT. 2106]]

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

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

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

    (nn) Chief of Air Force Nurses.--
            (1) In general.--Section 8069 of title 10, United States 
        Code, is amended--
                    (A) in subsection (a)--
                          (i) in the subsection heading, by striking 
                      ``Positions of Chief and Assistant Chief'' and 
                      inserting ``Position of Chief''; and
                          (ii) by striking ``and assistant chief'';
                    (B) in subsection (b), by striking the second 
                sentence; and
                    (C) by striking subsection (c).
            (2) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 8069. Air Force nurses: Chief; appointment''.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 807 of such title <<NOTE: 10 USC 8061 
        prec.>> 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 <<NOTE: 10 USC 8531 
        prec.>> is amended by striking the item relating to section 
        8543.

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

[[Page 130 STAT. 2107]]

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

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

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

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

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

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

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

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

[[Page 130 STAT. 2108]]

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

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

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

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

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

[[Page 130 STAT. 2109]]

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

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

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

    (a) Temporary Early Retirement Authority.--Section 4403(i) of the 
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 
note) is amended by striking ``December 31, 2018'' and inserting 
``December 31, 2025''.
    (b) Continuation on Active Duty.--Section 638a(a)(2) of title 10, 
United States Code, is amended by striking ``December 31, 2018'' and 
inserting ``December 31, 2025''.
    (c) Voluntary Separation Pay.--Section 1175a(k)(1) of such title is 
amended by striking ``December 31, 2018'' and inserting ``December 31, 
2025''.
    (d) Service-in-Grade Waivers.--Section 1370(a)(2)(F) of such title 
is amended by striking ``2018'' and inserting ``2025''.
SEC. 509. <<NOTE: 10 USC 503 note.>>  PILOT PROGRAMS ON DIRECT 
                        COMMISSIONS TO CYBER POSITIONS.

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

[[Page 130 STAT. 2110]]

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

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

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

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

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

[[Page 130 STAT. 2111]]

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

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

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

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

[[Page 130 STAT. 2112]]

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

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

                Subtitle B--Reserve Component Management

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

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

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

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

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

[[Page 130 STAT. 2113]]

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

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

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

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

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

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

                 Subtitle C--General Service Authorities

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

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

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

[[Page 130 STAT. 2114]]

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

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

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

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

[[Page 130 STAT. 2115]]

at the end of the member's period of obligated service described in that 
subparagraph if the Secretary determines that the waiver is in the 
interests of the armed force concerned.
    ``(j)(1) Under regulations prescribed by the Secretary of Defense, a 
member of the armed forces described in subsection (i)(2) who is the 
secondary caregiver in the case of the birth of a child or the adoption 
of a child is allowed up to 21 days of leave to be used in connection 
with such birth or adoption.
    ``(2) The Secretary shall prescribe in the regulations referred to 
in paragraph (1) a definition of the term `secondary caregiver' for 
purposes of this subsection.
    ``(3) Any leave taken by a member under this subsection may be taken 
only in one increment in connection with such birth or adoption.
    ``(4) Under the regulations prescribed for purposes of this 
subsection, paragraphs (6) through (10) of subsection (i) (other than 
paragraph (9)(B) of such subsection) shall apply to leave, and the 
taking of leave, authorized by this subsection.''.
    (b) Prohibition on Leave Not Expressly Authorized by Law.--
            (1) Prohibition.--Chapter 40 of title 10, United States 
        Code, is amended by inserting after section 704 the following 
        new section:
``Sec. 704a. <<NOTE: 10 USC 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, <<NOTE: 10 USC 701 
        prec.>> 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. <<NOTE: 10 USC 709a.>>  Expenses incurred in 
                  connection with leave canceled due to 
                  contingency operations: reimbursement

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

[[Page 130 STAT. 2116]]

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

    ``(b) Regulations.--The Secretary of Defense and, in the case of the 
Coast Guard when it is not operating as a service in the Navy, the 
Secretary of Homeland Security shall prescribe regulations to establish 
the criteria for the applicability of subsection (a).
    ``(c) Conclusiveness of Settlement.--The settlement of an 
application for reimbursement under subsection (a) is final and 
conclusive.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 40 of such title is <<NOTE: 10 USC 701 prec.>> amended by 
inserting after the item relating to section 709 the following new item:

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

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

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

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

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

[[Page 130 STAT. 2117]]

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

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

    (b) <<NOTE: 10 USC 1210 note.>>  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. <<NOTE: 10 USC 3013 note.>>  CONSOLIDATION OF ARMY 
                        MARKETING AND PILOT PROGRAM ON 
                        CONSOLIDATED ARMY RECRUITING.

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

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

[[Page 130 STAT. 2118]]

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

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

SEC. 531. IMPROVEMENTS TO WHISTLEBLOWER PROTECTION PROCEDURES.

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

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

[[Page 130 STAT. 2119]]

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

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

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

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

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

[[Page 130 STAT. 2120]]

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

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

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

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

[[Page 130 STAT. 2121]]

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

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

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

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

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

[[Page 130 STAT. 2122]]

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

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

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

[[Page 130 STAT. 2123]]

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

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

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

[[Page 130 STAT. 2124]]

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

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

        Subtitle E--Military Justice and Legal Assistance Matters

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

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

[[Page 130 STAT. 2125]]

to oaths, affirmations, and acknowledgments provided to justices and 
judges of the United States by section 459 of title 28.''.
    (b) Modification of Term of Judges of the Court to Restore Rotation 
of Judges.--
            (1) <<NOTE: 10 USC 942 note.>>  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) <<NOTE: 10 USC 942 note.>>  Application of amendments.--
        The amendments made by paragraph (2) shall apply with respect to 
        appointments to the United States Court of Appeals for the Armed 
        Forces that are made on or after the date of the enactment of 
        this Act.

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

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

[[Page 130 STAT. 2126]]

Code (article 145 of the Uniform Code of Military Justice), is amended--
            (1) in subsection (d), by striking ``subsection (g)(1)(B)'' 
        and inserting ``subsection (f)(1)(B)'';
            (2) by striking subsection (f); and
            (3) by redesignating subsections (g), (h), and (i) as 
        subsections (f), (g), and (h), respectively.
SEC. 542. <<NOTE: 10 USC 827 note.>>  EFFECTIVE PROSECUTION AND 
                        DEFENSE IN COURTS-MARTIAL AND PILOT 
                        PROGRAMS ON PROFESSIONAL MILITARY JUSTICE 
                        DEVELOPMENT FOR JUDGE ADVOCATES.

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

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

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

[[Page 130 STAT. 2127]]

SEC. 543. <<NOTE: 10 USC 1561 note.>>  INCLUSION IN ANNUAL REPORTS 
                        ON SEXUAL ASSAULT PREVENTION AND RESPONSE 
                        EFFORTS OF THE ARMED FORCES OF INFORMATION 
                        ON COMPLAINTS OF RETALIATION IN CONNECTION 
                        WITH REPORTS OF SEXUAL ASSAULT IN THE 
                        ARMED FORCES.

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

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

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

[[Page 130 STAT. 2128]]

SEC. 545. <<NOTE: 10 USC 1561 note.>>  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. <<NOTE: 10 USC 1561 note.>>  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. <<NOTE: 10 USC 1561 note.>>  NOTIFICATION TO 
                        COMPLAINANTS OF RESOLUTION OF 
                        INVESTIGATIONS INTO RETALIATION.

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

[[Page 130 STAT. 2129]]

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

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

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

    (b) <<NOTE: 10 USC 1561 note.>>  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. <<NOTE: 10 USC 113 note.>>  IMPROVED DEPARTMENT OF 
                        DEFENSE PREVENTION OF AND RESPONSE TO 
                        HAZING IN THE ARMED FORCES.

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

[[Page 130 STAT. 2130]]

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

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

SEC. 551. PURPOSE, SCOPE, AND DEFINITIONS.

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

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

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

[[Page 130 STAT. 2131]]

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

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

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

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

[[Page 130 STAT. 2132]]

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

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

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

[[Page 130 STAT. 2133]]

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

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

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

[[Page 130 STAT. 2134]]

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

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

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

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

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

[[Page 130 STAT. 2135]]

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

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

[[Page 130 STAT. 2136]]

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

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

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

[[Page 130 STAT. 2137]]

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

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

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

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

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

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

[[Page 130 STAT. 2138]]

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

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

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

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

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

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

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

[[Page 130 STAT. 2139]]

Delegate shall be notified at least 48 hours before the official 
notification or announcement of the appointment is made.''.
    (c) United States Air Force Academy.--Section 9342(a) of title 10, 
United States Code, is amended in the matter after paragraph (10) by 
adding at the end the following new sentence: ``When a nominee of a 
Senator, Representative, or Delegate is selected for appointment as a 
cadet, the Senator, Representative, or Delegate shall be notified at 
least 48 hours before the official notification or announcement of the 
appointment is made.''.
    (d) United States Merchant Marine Academy.--Section 51302 of title 
46, United States Code, is amended by adding at the end the following:
    ``(e) Congressional Notification in Advance of Appointments.--When a 
nominee of a Senator, Representative, or Delegate is selected for 
appointment as a cadet, the Senator, Representative, or Delegate shall 
be notified at least 48 hours before the official notification or 
announcement of the appointment is made.''.
    (e) <<NOTE: 10 USC 4342 note.>>  Application of Amendments.--The 
amendments made by this section shall apply with respect to the 
appointment of cadets and midshipmen to the United States Military 
Academy, the United States Naval Academy, the United States Air Force 
Academy, and the United States Merchant Marine Academy for classes 
entering these service academies after January 1, 2018.
SEC. 567. REPORT AND GUIDANCE ON JOB TRAINING, EMPLOYMENT SKILLS 
                        TRAINING, APPRENTICESHIPS, AND INTERNSHIPS 
                        AND SKILLBRIDGE INITIATIVES FOR MEMBERS OF 
                        THE ARMED FORCES WHO ARE BEING SEPARATED.

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

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

[[Page 130 STAT. 2140]]

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

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

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

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

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

[[Page 130 STAT. 2141]]

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

    (a) Extension.--Section 574(c)(3) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (20 U.S.C. 7703b note) is 
amended by striking ``September 30, 2016'' and inserting ``September 30, 
2017''.
    (b) <<NOTE: 20 USC 7703b note.>>  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. <<NOTE: 50 USC 3938a.>>  ANNUAL NOTICE TO MEMBERS OF THE 
                        ARMED FORCES REGARDING CHILD CUSTODY 
                        PROTECTIONS GUARANTEED BY THE 
                        SERVICEMEMBERS CIVIL RELIEF ACT.

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

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

[[Page 130 STAT. 2142]]

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

    (c) Coordination of Release Date Between Annual Reports Regarding 
Sexual Assaults and Family Advocacy Program Report.--The Secretary of 
Defense shall ensure that the sexual assault reports required to be 
submitted under section 1631(d) of the Ike Skelton National Defense 
Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 
1561 note) for a year are delivered to the Committees on Armed Services 
of the House of Representatives and the Senate simultaneously with the 
report for that year required under this section.
SEC. 575. <<NOTE: 10 USC 1787 note.>>  REPORTING ON ALLEGATIONS OF 
                        CHILD ABUSE IN MILITARY FAMILIES AND 
                        HOMES.

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

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

[[Page 130 STAT. 2143]]

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

    Section 1411 of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 929) is repealed.
SEC. 577. <<NOTE: 10 USC 1781 note.>>  SUPPORT FOR PROGRAMS 
                        PROVIDING CAMP EXPERIENCE FOR CHILDREN OF 
                        MILITARY FAMILIES.

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

[[Page 130 STAT. 2144]]

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

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

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

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

[[Page 130 STAT. 2145]]

SEC. 579. <<NOTE: 20 USC 7703 note.>>  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) <<NOTE: 20 USC 7703 note.>>  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) <<NOTE: 20 USC 7703 note.>>  Special Rule Regarding the Per-
Pupil Expenditure Requirement.--
            (1) References.--Except as otherwise expressly provided, any 
        reference in this subsection to a section or other provision of 
        title VII of the Elementary and Secondary Education Act of 1965 
        shall be considered to be a reference to the section or other 
        provision of such title VII as amended by the Every Student 
        Succeeds Act (Public Law 114-95; 129 Stat. 1802).
            (2) In general.--Notwithstanding section 5(d) of the Every 
        Student Succeeds Act (Public Law 114-95; 129 Stat. 1806) or 
        section 7003(b)(2) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7703(b)(2)), with respect to any application 
        submitted under section 7005 of such Act (20 U.S.C. 7705) for 
        eligibility consideration under subclause (II) or (V) of section 
        7003(b)(2)(B)(i) of such Act for fiscal year 2017, 2018, or 
        2019, the Secretary of Education shall determine that a local 
        educational agency meets the per-pupil expenditure

[[Page 130 STAT. 2146]]

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

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

[[Page 130 STAT. 2147]]

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

[[Page 130 STAT. 2148]]

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

[[Page 130 STAT. 2149]]

                   Subtitle I--Decorations and Awards

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

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

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

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

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

[[Page 130 STAT. 2150]]

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

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

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

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

[[Page 130 STAT. 2151]]

Joseph Verbis LaFleur while interned as a prisoner-of- war by Japan from 
December 30, 1941, to September 7, 1944.
SEC. 586. <<NOTE: 10 USC 3741 note.>>  REVIEW REGARDING AWARD OF 
                        MEDAL OF HONOR TO CERTAIN ASIAN AMERICAN 
                        AND NATIVE AMERICAN PACIFIC ISLANDER WAR 
                        VETERANS.

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

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

[[Page 130 STAT. 2152]]

           Subtitle J--Miscellaneous Reports and Other Matters

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

    (a) Repeal.--Section 9337 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 903 of such title <<NOTE: 10 USC 9331 prec.>> is amended by 
striking the item related to section 9337.
SEC. 592. EXTENSION OF LIMITATION ON REDUCTION IN NUMBER OF 
                        MILITARY AND CIVILIAN PERSONNEL ASSIGNED 
                        TO DUTY WITH SERVICE REVIEW AGENCIES.

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

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

[[Page 130 STAT. 2153]]

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

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

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

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

[[Page 130 STAT. 2154]]

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

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

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

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

[[Page 130 STAT. 2155]]

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

            Subtitle C--Travel and Transportation Allowances

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

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

        Part I--Amendments in Connection With Retired Pay Reform

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

                         Part II--Other Matters

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

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

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Pay and Allowances

SEC. 601. <<NOTE: 37 USC 1009 note.>>  FISCAL YEAR 2017 INCREASE 
                        IN MILITARY BASIC PAY.

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

[[Page 130 STAT. 2156]]

SEC. 602. <<NOTE: 37 USC 203 note.>>  PUBLICATION BY DEPARTMENT OF 
                        DEFENSE OF ACTUAL RATES OF BASIC PAY 
                        PAYABLE TO MEMBERS OF THE ARMED FORCES BY 
                        PAY GRADE FOR ANNUAL OR OTHER PAY PERIODS.

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

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

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

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

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

[[Page 130 STAT. 2157]]

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

[[Page 130 STAT. 2158]]

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

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

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

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

[[Page 130 STAT. 2159]]

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

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

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

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

[[Page 130 STAT. 2160]]

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

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

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

[[Page 130 STAT. 2161]]

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

    (i) Exclusions From Income for Purpose of Supplemental Security 
Income.--Section 1612(b)(20) of the Social Security Act (42 U.S.C. 
1382a(b)(20)) is amended by inserting ``, or paragraph (1) or (3) of 
section 351(a),'' after ``section 310''.
    (j) Exclusions From Income for Purpose of Head Start Program.--
Section 645(a)(3)(B)(i) of the Head Start Act (42 U.S.C. 
9840(a)(3)(B)(i)) is amended by inserting ``or 351'' after ``section 
310''.
    (k) Exclusions From Gross Income for Federal Income Tax Purposes.--
Section 112(c)(5)(B) of the Internal Revenue Code of 1986 <<NOTE: 26 USC 
112.>> is amended by inserting ``, or paragraph (1) or (3) of section 
351(a),'' after ``section 310''.

            Subtitle C--Travel and Transportation Allowances

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

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

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

[[Page 130 STAT. 2162]]

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

        PART I--AMENDMENTS IN CONNECTION WITH RETIRED PAY REFORM

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

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

    (b) <<NOTE: 10 USC 1409 note.>>  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. <<NOTE: 5 USC 8432 note.>>  EFFECT OF SEPARATION OF 
                        MEMBERS FROM THE UNIFORMED SERVICES ON 
                        PARTICIPATION IN THE THRIFT SAVINGS PLAN.

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

[[Page 130 STAT. 2163]]

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

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

    (b) Payment Amount.--Subsection (b) of such section is amended by 
striking all the matter preceding paragraph (1) and inserting the 
following:
    ``(b) Payment Amount.--The Secretary concerned shall determine the 
payment amount under this section as a multiple of a full TSP member's 
monthly basic pay. The multiple for a full TSP member who is a member of 
a regular component or a reserve component, if the member is performing 
active Guard and Reserve duty (as defined in section 101(d)(6) of title 
10), shall not be less than 2.5 times the member's monthly basic pay. 
The multiple for a full TSP member who is a member of a reserve 
component not performing active Guard or Reserve duty (as so defined) 
shall not be less than 0.5 times the monthly basic pay to which the 
member would be entitled if the member were a member of a regular 
component. The maximum amount the Secretary concerned may pay a member 
under this section is--''.
    (c) Timing of Payment.--Subsection (d) of such section is amended to 
read as follows:
    ``(d) Timing of Payment.--The Secretary concerned shall pay 
continuation pay under subsection (a) to a full TSP member when the 
member has completed not less than 8 and not more than 12 years of 
service in a uniformed service.''.
    (d) Conforming and Clerical Amendments.--
            (1) Heading.--The heading of such section is amended to read 
        as follows:
``Sec. 356. Continuation pay: full TSP members with 8 to 12 years 
                of service''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 5 of such title <<NOTE: 37 USC 301 
        prec.>> 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) <<NOTE: 37 USC 356 note.>>  Effective Date.--The amendments made 
by this section shall take effect on January 1, 2018, immediately after 
the coming into effect of the amendments providing for section 356 of 
title 37, United States Code, to which the amendments made by this 
section relate.
SEC. 634. COMBAT-RELATED SPECIAL COMPENSATION COORDINATING 
                        AMENDMENT.

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

[[Page 130 STAT. 2164]]

    (b) <<NOTE: 10 USC 1413a note.>>  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) <<NOTE: 10 USC 1408 note.>>  Application of Amendments.--The 
amendments made by subsection (a) shall apply with respect to any 
division of property as part of a final decree of divorce, dissolution, 
annulment, or legal separation involving a member of the Armed Forces to 
which section 1408 of title 10, United States Code, applies that becomes 
final after the date of the enactment of this Act.
SEC. 642. EQUAL BENEFITS UNDER SURVIVOR BENEFIT PLAN FOR SURVIVORS 
                        OF RESERVE COMPONENT MEMBERS WHO DIE IN 
                        THE LINE OF DUTY DURING INACTIVE-DUTY 
                        TRAINING.

    (a) Treatment of Inactive-Duty Training in Same Manner as Active 
Duty.--Section 1451(c)(1)(A) of title 10, United States Code, is 
amended--
            (1) in clause (i)--
                    (A) by inserting ``or 1448(f)'' after ``section 
                1448(d)''; and
                    (B) by inserting ``or (iii)'' after ``clause (ii)''; 
                and
            (2) in clause (iii)--
                    (A) by striking ``section 1448(f) of this title'' 
                and inserting ``section 1448(f)(1)(A) of this title by 
                reason of the death of a member or former member not in 
                line of duty''; and
                    (B) by striking ``active service'' and inserting 
                ``service''.

[[Page 130 STAT. 2165]]

    (b) Consistent Treatment of Dependent Children.--Paragraph (2) of 
section 1448(f) of title 10, United States Code, is amended to read as 
follows:
            ``(2) Dependent children annuity.--
                    ``(A) Annuity when no eligible surviving spouse.--In 
                the case of a person described in paragraph (1), the 
                Secretary concerned shall pay an annuity under this 
                subchapter to the dependent children of that person 
                under section 1450(a)(2) of this title as applicable.
                    ``(B) Optional annuity when there is an eligible 
                surviving spouse.--The Secretary may pay an annuity 
                under this subchapter to the dependent children of a 
                person described in paragraph (1) under section 
                1450(a)(3) of this title, if applicable, instead of 
                paying an annuity to the surviving spouse under 
                paragraph (1), if the Secretary concerned, in 
                consultation with the surviving spouse, determines it 
                appropriate to provide an annuity for the dependent 
                children under this paragraph instead of an annuity for 
                the surviving spouse under paragraph (1).''.

    (c) Deemed Elections.--Section 1448(f) of title 10, United States 
Code, is further amended by adding at the end the following new 
paragraph:
            ``(5) Deemed election to provide an annuity for dependent.--
        Paragraph (6) of subsection (d) shall apply in the case of a 
        member described in paragraph (1) who dies after November 23, 
        2003, when no other annuity is payable on behalf of the member 
        under this subchapter.''.

    (d) Availability of Special Survivor Indemnity Allowance.--Section 
1450(m)(1)(B) of title 10, United States Code, is amended by inserting 
``or (f)'' after ``subsection (d)''.
    (e) <<NOTE: 10 USC 1448 note.>>  Application of Amendments.--
            (1) Payment.--No annuity benefit under subchapter II of 
        chapter 73 of title 10, United States Code, shall accrue to any 
        person by reason of the amendments made by this section for any 
        period before the date of the enactment of this Act.
            (2) Elections.--For any death that occurred before the date 
        of the enactment of this Act with respect to which an annuity 
        under such subchapter is being paid (or could be paid) to a 
        surviving spouse, the Secretary concerned may, within six months 
        of that date and in consultation with the surviving spouse, 
        determine it appropriate to provide an annuity for the dependent 
        children of the decedent under paragraph 1448(f)(2)(B) of title 
        10, United States Code, as added by subsection (b), instead of 
        an annuity for the surviving spouse. Any such determination and 
        resulting change in beneficiary shall be effective as of the 
        first day of the first month following the date of the 
        determination.
SEC. 643. AUTHORITY TO DEDUCT SURVIVOR BENEFIT PLAN PREMIUMS FROM 
                        COMBAT-RELATED SPECIAL COMPENSATION WHEN 
                        RETIRED PAY NOT SUFFICIENT.

    (a) Authority.--Subsection (d) of section 1452 of title 10, United 
States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):

[[Page 130 STAT. 2166]]

            ``(2) Deduction from combat-related special compensation 
        when retired pay not adequate.--In the case of a person who has 
        elected to participate in the Plan and who has been awarded both 
        retired pay and combat-related special compensation under 
        section 1413a of this title, if a deduction from the person's 
        retired pay for any period cannot be made in the full amount 
        required, there shall be deducted from the person's combat-
        related special compensation in lieu of deduction from the 
        person's retired pay the amount that would otherwise have been 
        deducted from the person's retired pay for that period.''.

    (b) Conforming Amendments to Section 1452.--
            (1) Subsection (d) of such section is further amended--
                    (A) in the subsection heading, by inserting ``or Not 
                Sufficient'' after ``Not Paid'';
                    (B) in paragraph (1), by inserting before the period 
                at the end the following: ``, except to the extent that 
                the required deduction is made pursuant to paragraph 
                (2)''; and
                    (C) in paragraph (3), as redesignated by subsection 
                (a)(1), by striking ``Paragraph (1) does not'' and 
                inserting ``Paragraphs (1) and (2) do not''.
            (2) Subsection (f)(1) of such section is amended by 
        inserting ``or combat-related special compensation'' after 
        ``from retired pay''.
            (3) Subsection (g)(4) of such section is amended--
                    (A) in the paragraph heading, by inserting ``or 
                crsc'' after ``retired pay''; and
                    (B) by inserting ``or combat-related special 
                compensation'' after ``from the retired pay''.

    (c) Conforming Amendments to Other Provisions of SBP Statute.--
            (1) Section 1449(b)(2) of such title is amended--
                    (A) in the paragraph heading, by inserting ``or 
                crsc'' after ``retired pay''; and
                    (B) by inserting ``or combat-related special 
                compensation'' after ``from retired pay''.
            (2) Section 1450(e) of such title is amended--
                    (A) in the subsection heading, by inserting ``or 
                CRSC'' after ``Retired Pay''; and
                    (B) in paragraph (1), by inserting ``or combat-
                related special compensation'' after ``from the retired 
                pay''.
SEC. 644. EXTENSION OF ALLOWANCE COVERING MONTHLY PREMIUM FOR 
                        SERVICEMEMBERS' GROUP LIFE INSURANCE WHILE 
                        IN CERTAIN OVERSEAS AREAS TO COVER MEMBERS 
                        IN ANY COMBAT ZONE OR OVERSEAS DIRECT 
                        SUPPORT AREA.

    (a) Expansion of Coverage.--Subsection (a) of section 437 of title 
37, United States Code, is amended--
            (1) by inserting ``(1)'' before ``In the case of'';
            (2) by striking ``who serves in the theater of operations 
        for Operation Enduring Freedom or Operation Iraqi Freedom'' and 
        inserting ``who serves in a designated duty assignment''; and
            (3) by adding at the end the following new paragraph:

    ``(2) In this subsection, the term `designated duty assignment' 
means a permanent or temporary duty assignment outside the

[[Page 130 STAT. 2167]]

United States or its possessions in support of a contingency operation 
in an area that--
            ``(A) has been designated a combat zone; or
            ``(B) is in direct support of an area that has been 
        designated a combat zone.''.

    (b) Conforming Amendments.--
            (1) Cross-reference.--Subsection (b) of such section is 
        amended by striking ``theater of operations'' and inserting 
        ``designated duty assignment''.
            (2) Section heading.--The heading of such section is amended 
        to read as follows:
``Sec. 437. Allowance to cover monthly premiums for 
                Servicemembers' Group Life Insurance: members 
                serving in a designated duty assignment''.
            (3) Table of sections.--The item relating to section 437 in 
        the table of sections at the beginning of chapter 7 of such 
        title <<NOTE: 37 USC 401 prec.>> 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) <<NOTE: 37 USC 437 note.>>  Effective Date.--The amendments made 
by this section shall apply to service by members of the Armed Forces in 
a designated duty assignment (as defined in subsection (a)(2) of section 
437 of title 37, United States Code) for any month beginning on or after 
the date of the enactment of this Act.
SEC. 645. AUTHORITY FOR PAYMENT OF PAY AND ALLOWANCES AND RETIRED 
                        AND RETAINER PAY PURSUANT TO POWER OF 
                        ATTORNEY.

    Section 602 of title 37, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``, in the opinion of a board of 
                medical officers or physicians,''; and
                    (B) by striking ``use or benefit'' and all that 
                follows through ``any person designated'' and inserting 
                the following: ``use or benefit to--
            ``(1) a legal committee, guardian, or other representative 
        that has been appointed by a court of competent jurisdiction;
            ``(2) an individual to whom the member has granted authority 
        to manage such funds pursuant to a valid and legally executed 
        durable power of attorney; or
            ``(3) any person designated'';
            (2) in subsection (b)--
                    (A) by striking ``The board shall consist'' and 
                inserting ``An individual may not be designated under 
                subsection (a)(3) to receive payments unless a board 
                consisting''; and
                    (B) by inserting ``determines that the member is 
                mentally incapable of managing the member's affairs. Any 
                such board shall be'' after ``treatment of mental 
                disorders,'';
            (3) in subsection (c), by striking ``designated'' and 
        inserting ``authorized to receive payments'';
            (4) in subsection (d), by inserting ``, unless a court of 
        competent jurisdiction orders payment of such fee, commission, 
        or other charge'' before the period;
            (5) by striking subsection (e);
            (6) by redesignating subsection (f) as subsection (e); and
            (7) in subsection (e), as redesignated by paragraph (6)--

[[Page 130 STAT. 2168]]

                    (A) by inserting ``under subsection (a)(3)'' after 
                ``who is designated''; and
                    (B) by striking ``$1,000'' and inserting 
                ``$25,000''.
SEC. 646. EXTENSION OF AUTHORITY TO PAY SPECIAL SURVIVOR INDEMNITY 
                        ALLOWANCE UNDER THE SURVIVOR BENEFIT PLAN.

    Section 1450(m) of title 10, United States Code, is amended--
            (1) in paragraph (2)(I), by striking ``fiscal year 2017'' 
        and inserting ``each of fiscal years 2017 and 2018''; and
            (2) in paragraph (6)--
                    (A) by striking ``September 30, 2017'' and inserting 
                ``May 31, 2018''; and
                    (B) by striking ``October 1, 2017'' both places it 
                appears and inserting ``June 1, 2018''.
SEC. 647. REPEAL OF OBSOLETE AUTHORITY FOR COMBAT-RELATED INJURY 
                        REHABILITATION PAY.

    (a) Repeal.--Section 328 of title 37, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title <<NOTE: 37 USC 301 prec.>> is amended by 
striking the item relating to section 328.
SEC. 648. INDEPENDENT ASSESSMENT OF THE SURVIVOR BENEFIT PLAN.

    (a) Assessment Required.--The Secretary of Defense shall provide for 
an independent assessment of the Survivor Benefit Plan (SBP) under 
subchapter II of chapter 73 of title 10, United States Code, by a 
Federally-funded research and development center (FFRDC).
    (b) Assessment Elements.--The assessment conducted pursuant to 
subsection (a) shall include, but not be limited to, the following:
            (1) The purposes of the Survivor Benefit Plan, the manner in 
        which the Plan interacts with other Federal programs to provide 
        financial stability and resources for survivors of members of 
        the Armed Forces and military retirees, and a comparison between 
        the benefits available under the Plan, on the one hand, and 
        benefits available to Government and private sector employees, 
        on the other hand, intended to provide financial stability and 
        resources for spouses and other dependents when a primary family 
        earner dies.
            (2) The effectiveness of the Survivor Benefit Plan in 
        providing survivors with intended benefits, including the 
        provision of survivor benefits for survivors of members of the 
        Armed Forces dying on active duty and members dying while in 
        reserve active-status.
            (3) The feasibility and advisability of providing survivor 
        benefits through alternative insurance products available 
        commercially for similar purposes, the extent to which the 
        Government could subsidize such products at no cost in excess of 
        the costs of the Survivor Benefit Plan, and the extent to which 
        such products might meet the needs of survivors, especially 
        those on fixed incomes, to maintain financial stability.

    (c) Report.--Not later than one year after the date of the enactment 
of this Act, the Secretary shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives

[[Page 130 STAT. 2169]]

a report setting forth the results of the assessment conducted pursuant 
to subsection (a), together with such recommendations as the Secretary 
considers appropriate for legislative or administration action in light 
of the results of the assessment.

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

SEC. 661. PROTECTION AND ENHANCEMENT OF ACCESS TO AND SAVINGS AT 
                        COMMISSARIES AND EXCHANGES.

    (a) Optimization Strategy.--Section 2481(c) of title 10, United 
States Code, is amended by adding at the end the following paragraph:
    ``(3)(A) The Secretary of Defense shall develop and implement a 
comprehensive strategy to optimize management practices across the 
defense commissary system and the exchange system that reduce reliance 
of those systems on appropriated funding without reducing benefits to 
the patrons of those systems or the revenue generated by nonappropriated 
fund entities or instrumentalities of the Department of Defense for the 
morale, welfare, and recreation of members of the armed forces.
    ``(B) The Secretary shall ensure that savings generated due to such 
optimization practices are shared by the defense commissary system and 
the exchange system through contracts or agreements that appropriately 
reflect the participation of the systems in the development and 
implementation of such practices.
    ``(C) If the Secretary determines that the reduced reliance on 
appropriated funding pursuant to subparagraph (A) is insufficient to 
maintain the benefits to the patrons of the defense commissary system, 
and if the Secretary converts the defense commissary system to a 
nonappropriated fund entity or instrumentality pursuant to paragraph (1) 
of section 2484(j) of this title, the Secretary shall transfer 
appropriated funds pursuant to paragraph (2) of such section to ensure 
the maintenance of such benefits.
    ``(4) On not less than a quarterly basis, the Secretary shall 
provide to the congressional defense committees a briefing on the 
defense commissary system, including--
            ``(A) an assessment of the savings the system provides 
        patrons;
            ``(B) the status of implementing section 2484(i) of this 
        title;
            ``(C) the status of implementing section 2484(j) of this 
        title, including whether the system requires any appropriated 
        funds pursuant to paragraph (2) of such section;
            ``(D) the status of carrying out a program for such system 
        to sell private label merchandise; and
            ``(E) any other matters the Secretary considers 
        appropriate.''.

    (b) Authorization to Supplement Appropriations Through Business 
Optimization.--Section 2483(c) of such title is amended by adding at the 
end the following new sentence: ``Such appropriated amounts may also be 
supplemented with additional funds derived from improved management 
practices implemented pursuant to sections 2481(c)(3) and 2487(c) of 
this title and the variable pricing program implemented pursuant to 
section 2484(i) of this title.''.

[[Page 130 STAT. 2170]]

    (c) Variable Pricing Pilot Program.--Section 2484 of such title is 
amended by adding at the end the following new subsections:
    ``(i) Variable Pricing Program.--(1) Notwithstanding subsection (e), 
and subject to subsection (k), the Secretary of Defense may establish a 
variable pricing program pursuant to which prices may be established in 
response to market conditions and customer demand, in accordance with 
the requirements of this subsection. Notwithstanding the amount of the 
uniform surcharge assessed in subsection (d), the Secretary may provide 
for an alternative surcharge of not more than five percent of sales 
proceeds under the variable pricing program to be made available for the 
purposes specified in subsection (h).
    ``(2) Subject to subsection (k), before establishing a variable 
pricing program under this subsection, the Secretary shall establish the 
following:
            ``(A) Specific, measurable benchmarks for success in the 
        provision of high quality grocery merchandise, discount savings 
        to patrons, and levels of customer satisfaction while achieving 
        savings for the Department of Defense.
            ``(B) A baseline of overall savings to patrons achieved by 
        commissary stores prior to the initiation of the variable 
        pricing program, based on a comparison of prices charged by 
        those stores on a regional basis with prices charged by relevant 
        local competitors for a representative market basket of goods.

    ``(3) The Secretary shall ensure that the defense commissary system 
implements the variable pricing program by conducting price comparisons 
using the methodology established for paragraph (2)(B) and adjusting 
pricing as necessary to ensure that pricing in the variable pricing 
program achieves overall savings to patrons that are consistent with the 
baseline savings established for the relevant region pursuant to such 
paragraph.
    ``(j) Conversion to Nonappropriated Fund Entity or 
Instrumentality.--(1) Subject to subsection (k), if the Secretary of 
Defense determines that the variable pricing program has met the 
benchmarks for success established pursuant to paragraph (2)(A) of 
subsection (i) and the savings requirements established pursuant to 
paragraph (3) of such subsection over a period of at least six months, 
the Secretary may convert the defense commissary system to a 
nonappropriated fund entity or instrumentality, with operating expenses 
financed in whole or in part by receipts from the sale of products and 
the sale of services. Upon such conversion, appropriated funds shall be 
transferred to the defense commissary system only in accordance with 
paragraph (2) or section 2491 of this title. The requirements of section 
2483 of this title shall not apply to the defense commissary system 
operating as a nonappropriated fund entity or instrumentality.
    ``(2) If the Secretary determines that the defense commissary system 
operating as a nonappropriated fund entity or instrumentality is likely 
to incur a loss in any fiscal year as a result of compliance with the 
savings requirement established in subsection (i), the Secretary shall 
authorize a transfer of appropriated funds available for such purpose to 
the commissary system in an amount sufficient to offset the anticipated 
loss. Any funds so transferred shall be considered to be nonappropriated 
funds for such purpose.
    ``(3)(A) The Secretary may identify positions of employees in the 
defense commissary system who are paid with appropriated

[[Page 130 STAT. 2171]]

funds whose status may be converted to the status of an employee of a 
nonappropriated fund entity or instrumentality.
    ``(B) The status and conversion of employees in a position 
identified by the Secretary under subparagraph (A) shall be addressed as 
provided in section 2491(c) of this title for employees in morale, 
welfare, and recreation programs, including with respect to requiring 
the consent of such employee to be so converted.
    ``(C) No individual who is an employee of the defense commissary 
system as of the date of the enactment of this subsection shall suffer 
any loss of or decrease in pay as a result of a conversion made under 
this paragraph.
    ``(k) Oversight Required To Ensure Continued Benefit to Patrons.--
(1) With respect to each action described in paragraph (2), the 
Secretary of Defense may not carry out such action until--
            ``(A) the Secretary provides to the congressional defense 
        committees a briefing on such action, including a justification 
        for such action; and
            ``(B) a period of 30 days has elapsed following such 
        briefing.

    ``(2) The actions described in this paragraph are the following:
            ``(A) Establishing the representative market basket of goods 
        pursuant to subsection (i)(2)(B).
            ``(B) Establishing the variable pricing program under 
        subsection (i)(1).
            ``(C) Converting the defense commissary system to a 
        nonappropriated fund entity or instrumentality under subsection 
        (j)(1).''.

    (d) Establishment of Common Business Practices.--Section 2487 of 
such title is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):

    ``(c) Common Business Practices.--(1) Notwithstanding subsections 
(a) and (b), the Secretary of Defense may establish common business 
processes, practices, and systems--
            ``(A) to exploit synergies between the defense commissary 
        system and the exchange system; and
            ``(B) to optimize the operations of the defense retail 
        systems as a whole and the benefits provided by the commissaries 
        and exchanges.

    ``(2) The Secretary may authorize the defense commissary system and 
the exchange system to enter into contracts or other agreements--
            ``(A) for products and services that are shared by the 
        defense commissary system and the exchange system; and
            ``(B) for the acquisition of supplies, resale goods, and 
        services on behalf of both the defense commissary system and the 
        exchange system.

    ``(3) For the purpose of a contract or agreement authorized under 
paragraph (2), the Secretary may--
            ``(A) use funds appropriated pursuant to section 2483 of 
        this title to reimburse a nonappropriated fund entity or 
        instrumentality for the portion of the cost of a contract or 
        agreement entered by the nonappropriated fund entity or 
        instrumentality that is attributable to the defense commissary 
        system; and
            ``(B) authorize the defense commissary system to accept 
        reimbursement from a nonappropriated fund entity or

[[Page 130 STAT. 2172]]

        instrumentality for the portion of the cost of a contract or 
        agreement entered by the defense commissary system that is 
        attributable to the nonappropriated fund entity or 
        instrumentality.''.

    (e) Authority for Expert Commercial Advice.--Section 2485 of such 
title is amended by adding at the end the following new subsection:
    ``(i) Expert Commercial Advice.--The Secretary of Defense may enter 
into a contract with an entity to obtain expert commercial advice, 
commercial assistance, or other similar services not otherwise carried 
out by the Defense Commissary Agency, to implement section 2481(c), 
subsections (i) and (j) of section 2484, and section 2487(c) of this 
title.''.
    (f)  Clarification of References to ``the Exchange System''.--
Section 2481(a) of such title is amended by adding at the end the 
following new sentence: `` Any reference in this chapter to `the 
exchange system' shall be treated as referring to each separate 
administrative entity within the Department of Defense through which the 
Secretary has implemented the requirement under this subsection for a 
world-wide system of exchange stores.''.
    (g) <<NOTE: 10 USC 2484 note.>>  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. <<NOTE: 10 USC 2485 note.>>  ACCEPTANCE OF MILITARY STAR 
                        CARD AT COMMISSARIES.

    (a) In General.--The Secretary of Defense shall ensure that--
            (1) commissary stores accept as payment the Military Star 
        Card; and
            (2) any financial liability of the United States relating to 
        such acceptance as payment be assumed by the Army and Air Force 
        Exchange Service.

    (b) Military Star Card Defined.--In this section, the term 
``Military Star Card'' means a credit card administered under the 
Exchange Credit Program by the Army and Air Force Exchange Service.

[[Page 130 STAT. 2173]]

                        Subtitle F--Other Matters

SEC. 671. RECOVERY OF AMOUNTS OWED TO THE UNITED STATES BY MEMBERS 
                        OF THE UNIFORMED SERVICES.

    (a) Statute of Limitations.--Section 1007(c)(3) of title 37, United 
States Code, is amended by adding at the end the following new 
subparagraphs:
    ``(C)(i) In accordance with clause (ii), if the indebtedness of a 
member of the uniformed services to the United States occurs, through no 
fault of the member, as a result of the overpayment of pay or allowances 
to the member or upon the settlement of the member's accounts, the 
Secretary concerned may not recover the indebtedness from the member, 
including a retired or former member, using deductions from the pay of 
the member, deductions from retired or separation pay, or any other 
collection method unless recovery of the indebtedness commences before 
the end of the 10-year period beginning on the date on which the 
indebtedness was incurred.
    ``(ii) Clause (i) applies with respect to indebtedness incurred on 
or after the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2017.
    ``(D)(i) Not later than January 1 of each of 2017 through 2027, the 
Director of the Defense Finance and Accounting Service shall review all 
cases occurring during the 10-year period prior to the date of the 
review of indebtedness of a member of the uniformed services, including 
a retired or former member, to the United States in which--
            ``(I) the recovery of the indebtedness commenced after the 
        end of the 10-year period beginning on the date on which the 
        indebtedness was incurred; or
            ``(II) the Director did not otherwise notify the member of 
        such indebtedness during such 10-year period.

    ``(ii) The Director shall submit to the congressional defense 
committees and the Committees on Veterans' Affairs of the House of 
Representatives and the Senate each review conducted under clause (i), 
including the amounts owed to the United States by the members included 
in such review.''.
    (b) Remission or Cancellation of Indebtedness of Reserves Not on 
Active Duty.--
            (1) Army.--Section 4837(a) of title 10, United States Code, 
        is amended by striking ``on active duty as a member of the 
        Army'' and inserting ``as a member of the Army, whether as a 
        regular or a reserve in active status''.
            (2) Navy.--Section 6161(a) of such title is amended by 
        striking ``on active duty as a member of the naval service'' and 
        inserting ``as a member of the naval service, whether as a 
        regular or a reserve in active status''.
            (3) Air force.--Section 9837(a) of such title is amended by 
        striking ``on active duty as a member of the Air Force'' and 
        inserting ``as a member of the Air Force, whether as a regular 
        or a reserve in active status''.
            (4) Coast guard.--Section 461(1) of title 14, United States 
        Code, is amended by striking ``on active duty as a member of the 
        Coast Guard'' and inserting ``as a member of the Coast Guard, 
        whether as a regular or a reserve in active status''.

[[Page 130 STAT. 2174]]

            (5) <<NOTE: 10 USC 4837 note.>>  Effective date.--The 
        amendments made by this subsection shall take effect on the date 
        of the enactment of this Act, and shall apply with respect to 
        debt incurred on or after October 7, 2001.

    (c) Benefits Paid to Members of California National Guard.--
            (1) Review of certain benefits paid.--
                    (A) In general.--The Secretary of Defense shall 
                conduct a review of all bonus pays, special pays, 
                student loan repayments, and similar special payments 
                that were paid to members of the National Guard of the 
                State of California during the period beginning on 
                January 1, 2004, and ending on December 31, 2015.
                    (B) Exception.--A review is not required under this 
                paragraph for benefits paid as described in subparagraph 
                (A) that were reviewed before the date of the enactment 
                of this Act and in which fraud or other ineligibility 
                was identified in connection with payment.
                    (C) Conduct of review.--The Secretary shall 
                establish a process to expedite the review required by 
                this paragraph. The Secretary shall allocate appropriate 
                personnel and other resources of the Department of 
                Defense for the process, and for such other purposes as 
                the Secretary considers appropriate, in order to achieve 
                the completion of the review by the date specified in 
                subparagraph (D).
                    (D) Completion.--The review required by this 
                paragraph shall be completed by not later than July 30, 
                2017.
            (2) Review.--
                    (A) In general.--In conducting the review of 
                benefits paid to members of the National Guard of the 
                State of California pursuant to paragraph (1), the board 
                of review concerned shall--
                          (i) carry out a complete review of all bonus 
                      pay and special pay contracts awarded to such 
                      members during the period described in paragraph 
                      (1)(A) for which the Department has reason to 
                      believe a recoupment of pay may be warranted in 
                      order to determine whether such members were 
                      eligible for the contracts so awarded and whether 
                      the contracts so awarded accurately specified the 
                      amounts of pay for which members were eligible;
                          (ii) carry out a complete review of all 
                      student loan repayment contracts awarded to such 
                      members during the period for which the Department 
                      has reason to believe a recoupment of payment may 
                      be warranted in order to determine whether such 
                      members were eligible for the contracts so awarded 
                      and whether the contracts so awarded accurately 
                      specified the amounts of payment for which members 
                      were eligible;
                          (iii) carry out a complete review of any other 
                      similar special payments paid to such members 
                      during the period for which the Department has 
                      reason to believe a recoupment of payments may be 
                      warranted in order to determine whether such 
                      members were eligible for payment and in such 
                      amount;
                          (iv) if any member is determined not to have 
                      been eligible for a bonus pay, special pay, 
                      student loan

[[Page 130 STAT. 2175]]

                      repayment, or other special payment paid, 
                      determine whether waiver of recoupment is 
                      warranted; and
                          (v) if any bonus pay, special pay, student 
                      loan repayment, or other special payment paid to 
                      any such member during the period has been 
                      recouped, determine whether the recoupment was 
                      unwarranted.
                    (B) Waiver of recoupment.--For purposes of clause 
                (iv) of subparagraph (A), the board of review shall 
                determine that waiver of recoupment is warranted with 
                respect to a particular member unless the board makes an 
                affirmative determination, by a preponderance of the 
                evidence, that the member knew or reasonably should have 
                known that the member was ineligible for the bonus pay, 
                special pay, student loan repayment, or other special 
                payment otherwise subject to recoupment.
                    (C) Propriety of recoupment.--For purposes of clause 
                (v) of subparagraph (A), the board of review shall 
                determine that recoupment was unwarranted with respect 
                to a particular member unless the board makes an 
                affirmative determination, by a preponderance of the 
                evidence, that the member knew or reasonably should have 
                known that the member was ineligible for the bonus pay, 
                special pay, student loan repayment, or other special 
                payment recouped.
                    (D) Standard of review.--In applying subparagraph 
                (B) or (C) in making a determination under clause (iv) 
                or (v) of subparagraph (A), as applicable, with respect 
                to a member, the board of review shall evaluate the 
                evidence in a light most favorable to the member.
            (3) Participation of members.--
                    (A) In general.--A member subject to a determination 
                under clause (iv) or (v) of paragraph (2)(A) may submit 
                to the board of review concerned such documentary and 
                other evidence as the member considers appropriate to 
                assist the board of review in the determination.
                    (B) Notice.--The Secretary shall notify, in writing, 
                each member subject to a determination under clause (iv) 
                or (v) of paragraph (2)(A) of the review under paragraph 
                (1) and the applicability of the determination process 
                under such clause to such member. The notice shall be 
                provided at a time designed to give each member a 
                reasonable opportunity to submit documentary and other 
                evidence as authorized by subparagraph (A). The notice 
                shall provide each member the following:
                          (i) Notice of the opportunity for such member 
                      to submit evidence to assist the board of review.
                          (ii) A description of resources available to 
                      such member to submit such evidence.
                    (C) Consideration.--In making a determination under 
                clause (iv) or (v) of paragraph (2)(A) with respect to a 
                member, the board of review shall undertake a 
                comprehensive review of any submissions made by the 
                member pursuant to this paragraph.
            (4) Actions following review.--
                    (A) Waiver of recoupment.--Upon completion of a 
                review pursuant to paragraph (2)(A)(iv) with respect to 
                a member--

[[Page 130 STAT. 2176]]

                          (i) the board of review shall submit to the 
                      Secretary concerned a notice setting forth--
                                    (I) the determination of the board 
                                pursuant to that paragraph with respect 
                                to the member; and
                                    (II) the recommendation of the board 
                                whether or not the recoupment of the 
                                bonus pay, special pay, student loan 
                                repayment, or other special payment 
                                covered by the determination should be 
                                waived; and
                          (ii) the Secretary may waive recoupment of the 
                      pay, repayment, or other payment from the member.
                    (B) Repayment of amount recouped.--Upon completion 
                of a review pursuant to paragraph (2)(A)(v) with respect 
                to a member--
                          (i) the board of review shall submit to the 
                      Secretary concerned a notice setting forth--
                                    (I) the determination of the board 
                                pursuant to that paragraph with respect 
                                to the member; and
                                    (II) the recommendation of the board 
                                whether or not the recouped bonus pay, 
                                special pay, student loan repayment, or 
                                other special payment covered by the 
                                determination should be repaid the 
                                member; and
                          (ii) the Secretary may repay the member the 
                      amount so recouped.
                    (C) Consumer credit and related matters.--If the 
                Secretary concerned waives recoupment of a bonus pay, 
                special pay, student loan repayment, or other special 
                payment paid a member pursuant to paragraph (4)(A)(ii), 
                or repays a member an amount of a bonus pay, special 
                pay, student loan repayment, or other special payment 
                recouped pursuant to paragraph (4)(B)(ii), the Secretary 
                shall--
                          (i) in the event the Secretary had previously 
                      notified a consumer reporting agency of the 
                      existence of the debt subject to the relief 
                      granted the member pursuant to this paragraph, 
                      notify such consumer reporting agency that such 
                      debt was never valid; and
                          (ii) if the member is experiencing or has 
                      experienced financial hardship as a result of the 
                      actions of the United States to obtain recoupment 
                      of such debt, assist the member, to the extent 
                      practicable, in addressing such financial hardship 
                      in accordance with such mechanisms as the 
                      Secretary shall develop for purposes of this 
                      clause.
                    (D) Effect of consumer credit notification.--A 
                consumer reporting agency notified of the invalidity of 
                a debt pursuant to subparagraph (C)(i) may not, after 
                the date of the notice, make any consumer report 
                containing any information relating to the debt.
                    (E) Definitions.--In this paragraph, the terms 
                ``consumer reporting agency'' and ``consumer report'' 
                have the meaning given such terms in section 603 of the 
                Fair Credit Reporting Act (15 U.S.C. 1681a).
            (5) Funding.--Amounts for activities under this subsection, 
        including for the conduct of the review required by paragraph

[[Page 130 STAT. 2177]]

        (1), for activities in connection with the review, for 
        repayments pursuant to paragraph (4)(B), and for activities 
        under paragraph (4)(C), shall be derived from amounts available 
        for the National Guard of the United States for the State of 
        California.
            (6) Secretary of defense report.--
                    (A) In general.--Not later than August 1, 2017, the 
                Secretary of Defense shall submit to the Committees on 
                Armed Services of the Senate and the House of 
                Representatives a report on the review conducted 
                pursuant to paragraph (1).
                    (B) Elements.--The report under this paragraph shall 
                include the following:
                          (i) The total amount of bonus pays, special 
                      pays, student loan repayments, and other special 
                      pays paid to members of the National Guard of the 
                      State of California during the period beginning on 
                      September 1, 2001, and ending on December 31, 
                      2015.
                          (ii) The number of bonus pay and special pay 
                      contracts reviewed pursuant to paragraph 
                      (2)(A)(i), and the amounts of such pays paid under 
                      each such contract.
                          (iii) The number of student loan repayment 
                      contracts reviewed pursuant to paragraph 
                      (2)(A)(ii), and the amounts of such payments made 
                      pursuant to each such contract.
                          (iv) The number of other special pay payments 
                      reviewed pursuant to paragraph (2)(A)(iii), and 
                      the amounts of such payments made to each 
                      particular member so paid.
                          (v) The number of bonus pay and special pay 
                      contracts, student loan repayments, and other 
                      special pay payments that were determined pursuant 
                      to the review to be paid in error, and the total 
                      amount, if any, recouped from each member 
                      concerned.
                          (vi) Any additional fraud or other 
                      ineligibility identified in the course of the 
                      review in the payment of bonus pays, special pays, 
                      student loan repayments, and other special pays 
                      paid to the members of the National Guard of the 
                      State of California during the period beginning on 
                      September 1, 2001, and ending on December 31, 
                      2015.
            (7) Comptroller general report.--
                    (A) In general.--Not later than one year after the 
                date of the enactment of this Act, the Comptroller 
                General of the United States shall submit to the 
                Committees on Armed Services of the Senate and the House 
                of Representatives a report on the actions of the 
                National Guard of the State of California relating to 
                the payment of bonus pays, special pays, student loan 
                repayments, and other special pays from 2004 through 
                2015.
                    (B) Elements.--The report under this paragraph shall 
                include the following:
                          (i) An assessment whether the National Guard 
                      of the State of California and the National Guard 
                      Bureau have established policies and procedures 
                      that will minimize the chance of improper payment 
                      of such

[[Page 130 STAT. 2178]]

                      pays and repayments and of managerial abuse in the 
                      payment of such pays and repayments.
                          (ii) An assessment whether the procedures, 
                      processes, and resources of the Defense Finance 
                      and Accounting Service and the Defense Office of 
                      Hearings and Appeals were appropriate to identify 
                      and respond to fraud or other ineligibility in 
                      connection with the payment of such pays and 
                      repayments, and to do so in a timely manner.
                          (iii) Any recommendations the Comptroller 
                      General considers appropriate to streamline the 
                      procedures and processes for the waiver of 
                      recoupment of the payment of such pays and 
                      repayments by the United States when recoupment is 
                      unwarranted.
SEC. 672. <<NOTE: 37 USC 474 note.>>  MODIFICATION OF FLAT RATE 
                        PER DIEM REQUIREMENT FOR PERSONNEL ON 
                        LONG-TERM TEMPORARY DUTY ASSIGNMENTS.

    (a) Modification of Flat Rate.--
            (1) In general.--The Secretary of Defense shall take such 
        action as may be necessary to provide that, to the extent that 
        regulations implementing travel and transportation authorities 
        for military and civilian personnel of the Department of Defense 
        impose a flat rate per diem for meals and incidental expenses 
        for authorized travelers on long-term temporary duty assignments 
        that is at a reduced rate compared to the per diem rate 
        otherwise applicable, the Secretary concerned may waive the 
        applicability of such reduced rate and pay such travelers actual 
        expenses up to the full per diem rate for such travel in any 
        case when the Secretary concerned determines that the reduced 
        flat rate per diem for meals and incidental expenses is not 
        sufficient under the circumstances of the temporary duty 
        assignment.
            (2) Applicability.--The Secretary concerned may exercise the 
        authority provided pursuant to paragraph (1) with respect to per 
        diem payable for any day on or after the date of the enactment 
        of this Act.

    (b) Delegation of Authority.--The authority pursuant to subsection 
(a) may be delegated by the Secretary concerned to an officer at the 
level of lieutenant general or vice admiral, or above. Such authority 
may not be delegated to an officer below that level.
    (c) Waiver of Collection of Receipts.--The Secretary concerned or an 
officer to whom the authority pursuant to subsection (a) is delegated 
pursuant to subsection (b) may waive any requirement for the submittal 
of receipts by travelers on long-term temporary duty assignments for the 
purpose of receiving the full per diem rate pursuant to subsection (a) 
if the Secretary concerned or officer, as described in subsection (b), 
personally certifies that requiring travelers to submit receipts for 
that purpose will negatively affect mission performance or create an 
undue administrative burden.
    (d) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 101 
of title 37, United States Code.

[[Page 130 STAT. 2179]]

                    TITLE VII--HEALTH CARE PROVISIONS

        Subtitle A--Reform of TRICARE and Military Health System

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

                 Subtitle B--Other Health Care Benefits

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

                 Subtitle C--Health Care Administration

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

                  Subtitle D--Reports and Other Matters

Sec. 741. Extension of authority for joint Department of Defense-
           Department of Veterans Affairs Medical Facility Demonstration 
           Fund and report on implementation of information technology 
           capabilities.
Sec. 742. Pilot program on expansion of use of physician assistants to 
           provide mental health care to members of the Armed Forces.
Sec. 743. Pilot program for prescription drug acquisition cost parity in 
           the TRICARE pharmacy benefits program.
Sec. 744. Pilot program on display of wait times at urgent care clinics 
           and pharmacies of military medical treatment facilities.
Sec. 745. Requirement to review and monitor prescribing practices at 
           military treatment facilities of pharmaceutical agents for 
           treatment of post-traumatic stress.

[[Page 130 STAT. 2180]]

Sec. 746. Department of Defense study on preventing the diversion of 
           opioid medications.
Sec. 747. Incorporation into survey by Department of Defense of 
           questions on experiences of members of the Armed Forces with 
           family planning services and counseling.
Sec. 748. Assessment of transition to TRICARE program by families of 
           members of reserve components called to active duty and 
           elimination of certain charges for such families.
Sec. 749. Oversight of graduate medical education programs of military 
           departments.
Sec. 750. Study on health of helicopter and tiltrotor pilots.
Sec. 751. Comptroller General reports on health care delivery and waste 
           in military health system.

        Subtitle A--Reform of TRICARE and Military Health System

SEC. 701. TRICARE SELECT AND OTHER TRICARE REFORM.

    (a) Establishment of TRICARE Select.--
            (1) In general.--Chapter 55 of title 10, United States Code, 
        is amended by inserting after section 1074n the following new 
        section:
``Sec. 1075. <<NOTE: 10 USC 1075.>>  TRICARE Select

    ``(a) Establishment.--(1) Not later than January 1, 2018, the 
Secretary of Defense shall establish a self-managed, preferred-provider 
network option under the TRICARE program. Such option shall be known as 
`TRICARE Select'.
    ``(2) The Secretary shall establish TRICARE Select in all areas. 
Under TRICARE Select, eligible beneficiaries will not have restrictions 
on the freedom of choice of the beneficiary with respect to health care 
providers.
    ``(b) Enrollment Eligibility.--(1) The beneficiary categories for 
purposes of eligibility to enroll in TRICARE Select and cost-sharing 
requirements applicable to such category are as follows:
            ``(A) An `active-duty family member' category that consists 
        of beneficiaries who are covered by section 1079 of this title 
        (as dependents of active duty members).
            ``(B) A `retired' category that consists of beneficiaries 
        covered by subsection (c) of section 1086 of this title, other 
        than Medicare-eligible beneficiaries described in subsection 
        (d)(2) of such section.
            ``(C) A `reserve and young adult' category that consists of 
        beneficiaries who are covered by--
                    ``(i) section 1076d of this title;
                    ``(ii) section 1076e; or
                    ``(iii) section 1110b.

    ``(2) A covered beneficiary who elects to participate in TRICARE 
Select shall enroll in such option under section 1099 of this title.
    ``(c) Cost-sharing Requirements.--The cost-sharing requirements 
under TRICARE Select are as follows:
            ``(1) With respect to beneficiaries in the active-duty 
        family member category or the retired category by reason of 
        being a member or former member of the uniformed services who 
        originally enlists or is appointed in the uniformed services on 
        or after January 1, 2018, or by reason of being a dependent of 
        such a member, the cost-sharing requirements shall be calculated 
        pursuant to subsection (d)(1).

[[Page 130 STAT. 2181]]

            ``(2)(A) Except as provided by subsection (e), with respect 
        to beneficiaries described in subparagraph (B) in the active-
        duty family member category or the retired category, the cost-
        sharing requirements shall be calculated as if the beneficiary 
        were enrolled in TRICARE Extra or TRICARE Standard as if TRICARE 
        Extra or TRICARE Standard, as the case may be, were still being 
        carried out by the Secretary.
            ``(B) Beneficiaries described in this subparagraph are 
        beneficiaries who are eligible to enroll in the TRICARE program 
        by reason of being a member or former member of the uniformed 
        services who originally enlists or is appointed in the uniformed 
        services before January 1, 2018, or by reason of being a 
        dependent of such a member.
            ``(3) With respect to beneficiaries in the reserve and young 
        adult category, the cost-sharing requirements shall be 
        calculated pursuant to subsection (d)(1) as if the beneficiary 
        were in the active-duty family member category or the retired 
        category, as applicable, except that the premiums calculated 
        pursuant to section 1076d, 1076e, or 1110b of this title, as the 
        case may be, shall apply instead of any enrollment fee required 
        under this section.

    ``(d) Cost-sharing Amounts for Certain Beneficiaries.--(1) 
Beneficiaries described in subsection (c)(1) enrolled in TRICARE Select 
shall be subject to cost-sharing requirements in accordance with the 
amounts and percentages under the following table during calendar year 
2018 and as such amounts are adjusted under paragraph (2) for subsequent 
years:


----------------------------------------------------------------------------------------------------------------
                       Active-Duty Family Member   (Individual/
 ``TRICARE Select                      Family)                             Retired   (Individual/Family)
----------------------------------------------------------------------------------------------------------------
Annual Enrollment   $0                                             $450 / $900
----------------------------------------------------------------------------------------------------------------
Annual deductible               E4 & below: $50 / $100             $150 / $300 Network
                               E5 & above: $150 / $300             $300 / $600 out of network
----------------------------------------------------------------------------------------------------------------
           Annual   $1,000                                         $3,500
  catastrophic cap
----------------------------------------------------------------------------------------------------------------
 Outpatient visit   $15 primary care                               $25 primary care
 civilian network
                    $25 specialty care                             $40 specialty care
                    .............................................  .............................................
                    Out of network: 20%                            25% of out of network
----------------------------------------------------------------------------------------------------------------
ER visit civilian   $40 network                                    $80 network
           network
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
      Urgent care   $20 network                                    $40 network
  civilian network

[[Page 130 STAT. 2182]]

 
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Ambulatory surgery  $25 network                                    $95 network
  civilian network
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Ambulance civilian  $15                                            $60
           network
----------------------------------------------------------------------------------------------------------------
  Durable medical   10% of negotiated fee                          20% network
         equipment
  civilian network
----------------------------------------------------------------------------------------------------------------
  Inpatient visit   $60 per network admission                      $175 per admission network
  civilian network
                    .............................................  .............................................
                    20% out of network                             25% out of network
----------------------------------------------------------------------------------------------------------------
Inpatient skilled   $25 per day network                            $50 per day network
     nursing/rehab
          civilian
                    $50 per day out of network                     Lesser of $300 per day or 20% of billed
                                                                    charges out of network
----------------------------------------------------------------------------------------------------------------


    ``(2) Each dollar amount expressed as a fixed dollar amount in the 
table set forth in paragraph (1), and the amounts specified under 
paragraphs (1) and (2) of subsection (e), shall be annually indexed to 
the amount by which retired pay is increased under section 1401a of this 
title, rounded to the next lower multiple of $1. The remaining amount 
above such multiple of $1 shall be carried over to, and accumulated 
with, the amount of the increase for the subsequent year or years and 
made when the aggregate amount of increases carried over under this 
clause for a year is $1 or more.
    ``(3) Enrollment fees, deductible amounts, and catastrophic caps 
under this section are on a calendar-year basis.
    ``(e) Exceptions to Certain Cost-sharing Amounts for Certain 
Beneficiaries Eligible Prior to 2018.--(1) Subject to paragraph (4), and 
in accordance with subsection (d)(2), the Secretary shall establish an 
annual enrollment fee for beneficiaries described in subsection 
(c)(2)(B) in the retired category who enroll in TRICARE Select (other 
than such beneficiaries covered by paragraph (3)). Such enrollment fee 
shall be $150 for an individual and $300 for a family.
    ``(2) For the calendar year for which the Secretary first 
establishes the annual enrollment fee under paragraph (1), the Secretary 
shall adjust the catastrophic cap amount to be $3,500 for beneficiaries 
described in subsection (c)(2)(B) in the retired category

[[Page 130 STAT. 2183]]

who are enrolled in TRICARE Select (other than such beneficiaries 
covered by paragraph (3)).
    ``(3) The enrollment fee established pursuant to paragraph (1) and 
the catastrophic cap adjusted under paragraph (2) for beneficiaries 
described in subsection (c)(2)(B) in the retired category shall not 
apply with respect to the following beneficiaries:
            ``(A) Retired members and the family members of such members 
        covered by paragraph (1) of section 1086(c) of this title by 
        reason of being retired under chapter 61 of this title or being 
        a dependent of such a member.
            ``(B) Survivors covered by paragraph (2) of such section 
        1086(c).

    ``(4) The Secretary may not establish an annual enrollment fee under 
paragraph (1) until 90 days has elapsed following the date on which the 
Comptroller General of the United States is required to submit the 
review under paragraph (5).
    ``(5) Not later than February 1, 2020, the Comptroller General of 
the United States shall submit to the Committees on Armed Services of 
the House of Representatives and the Senate a review of the following:
            ``(A) Whether health care coverage for covered beneficiaries 
        has changed since the enactment of this section.
            ``(B) Whether covered beneficiaries are able to obtain 
        appointments for health care according to the access standards 
        established by the Secretary of Defense.
            ``(C) The percent of network providers that accept new 
        patients under the TRICARE program.
            ``(D) The satisfaction of beneficiaries under TRICARE 
        Select.

    ``(f) Exception to Cost-sharing Requirements for TRICARE for Life 
Beneficiaries.--A beneficiary enrolled in TRICARE for Life is subject to 
cost-sharing requirements pursuant to section 1086(d)(3) of this title 
and calculated as if the beneficiary were enrolled in TRICARE Standard 
as if TRICARE Standard were still being carried out by the Secretary.
    ``(g) Construction.--Nothing in this section may be construed as 
affecting the availability of TRICARE Prime and TRICARE for Life or the 
cost-sharing requirements for TRICARE for Life under section 1086(d)(3) 
of this title.
    ``(h) Definitions.--In this section:
            ``(1) The terms `active-duty family member category', 
        `retired category', and `reserve and young adult category' mean 
        the respective categories of TRICARE Select enrollment described 
        in subsection (b).
            ``(2) The term `network' means--
                    ``(A) with respect to health care services, such 
                services provided to beneficiaries by TRICARE-authorized 
                civilian health care providers who have entered into a 
                contract under this chapter with a contractor under the 
                TRICARE program; and
                    ``(B) with respect to providers, civilian health 
                care providers who have agreed to accept a pre-
                negotiated rate as the total charge for services 
                provided by the provider and to file claims for 
                beneficiaries.
            ``(3) The term `out-of-network' means, with respect to 
        health care services, such services provided by TRICARE-
        authorized

[[Page 130 STAT. 2184]]

        civilian providers who have not entered into a contract under 
        this chapter with a contractor under the TRICARE program.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 55 of title 10, <<NOTE: 10 USC 1071 
        prec.>> 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. <<NOTE: 10 USC 1075a.>>  TRICARE Prime: cost sharing

    ``(a) Cost-sharing Requirements.--The cost-sharing requirements 
under TRICARE Prime are as follows:
            ``(1) There are no cost-sharing requirements for 
        beneficiaries who are covered by section 1074(a) of this title.
            ``(2) With respect to beneficiaries in the active-duty 
        family member category or the retired category (as described in 
        section 1075(b)(1) of this title) by reason of being a member or 
        former member of the uniformed services who originally enlists 
        or is appointed in the uniformed services on or after January 1, 
        2018, or by reason of being a dependent of such a member, the 
        cost-sharing requirements shall be calculated pursuant to 
        subsection (b)(1).
            ``(3)(A) With respect to beneficiaries described in 
        subparagraph (B) in the active-duty family member category or 
        the retired category (as described in section 1075(b)(1) of this 
        title), the cost-sharing requirements shall be calculated in 
        accordance with the other provisions of this chapter without 
        regard to subsection (b).
            ``(B) Beneficiaries described in this subparagraph are 
        beneficiaries who are eligible to enroll in the TRICARE program 
        by reason of being a member or former member of the uniformed 
        services who originally enlists or is appointed in the uniformed 
        services before January 1, 2018, or by reason of being a 
        dependent of such a member.

    ``(b) Cost-sharing Amounts.--(1) Beneficiaries described in 
subsection (a)(2) enrolled in TRICARE Prime shall be subject to cost-
sharing requirements in accordance with the amounts and percentages 
under the following table during calendar year 2018 and as such amounts 
are adjusted under paragraph (2) for subsequent years:


----------------------------------------------------------------------------------------------------------------
                       Active-Duty Family Member   (Individual/
  ``TRICARE Prime                      Family)                             Retired   (Individual/Family)
----------------------------------------------------------------------------------------------------------------
Annual Enrollment   $0                                             $350 / $700
----------------------------------------------------------------------------------------------------------------
Annual deductible   No                                             No
----------------------------------------------------------------------------------------------------------------

[[Page 130 STAT. 2185]]

 
           Annual   $1,000                                         $3,500
  catastrophic cap
----------------------------------------------------------------------------------------------------------------
 Outpatient visit   $0                                             $20 primary care
  civilian network
                                                                  ----------------------------------------------
                    .............................................  $30 specialty care
----------------------------------------------------------------------------------------------------------------
ER visit civilian   $0                                             $60 network
           network
----------------------------------------------------------------------------------------------------------------
      Urgent care   $0                                             $30 network
  civilian network
----------------------------------------------------------------------------------------------------------------
Ambulatory surgery  $0                                             $60 network
  civilian network
----------------------------------------------------------------------------------------------------------------
Ambulance civilian  $0                                             $40
           network
----------------------------------------------------------------------------------------------------------------
  Durable medical   $0                                             20% of negotiated fee, network
         equipment
  civilian network
----------------------------------------------------------------------------------------------------------------
  Inpatient visit   $0                                             $150 per admission
  civilian network
----------------------------------------------------------------------------------------------------------------
Inpatient skilled   $0                                             $30 per day network
     nursing/rehab
          civilian
----------------------------------------------------------------------------------------------------------------


    ``(2) Each dollar amount expressed as a fixed dollar amount in the 
table set forth in paragraph (1) shall be annually indexed to the amount 
by which retired pay is increased under section 1401a of this title, 
rounded to the next lower multiple of $1. The remaining amount above 
such multiple of $1 shall be carried over to, and accumulated with, the 
amount of the increase for the subsequent year or years and made when 
the aggregate amount of increases carried over under this clause for a 
year is $1 or more.
    ``(3) Enrollment fees, deductible amounts, and catastrophic caps 
under this section are on a calendar-year basis.
    ``(c) Special Rule for Amounts Without Referrals.--Notwithstanding 
subsection (b)(1), the cost-sharing amount for a beneficiary enrolled in 
TRICARE Prime who does not obtain a referral for care under paragraph 
(1) of section 1075f(a) of this title (or a waiver pursuant to paragraph 
(2) of such section for such care) shall be an amount equal to 50 
percent of the allowed point-of-service charge for such care.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 55 of title 10, <<NOTE: 10 USC 1071 
        prec.>> United States Code, is

[[Page 130 STAT. 2186]]

        amended by inserting after the item relating to section 1075, as 
        added by subsection (a), the following new item:

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

    (c) Referrals and Preauthorization for TRICARE Prime.--Section 1095f 
of title 10, United States Code, is amended to read as follows:
``Sec. 1095f. TRICARE program: referrals and preauthorizations 
                    under TRICARE Prime

    ``(a) Referrals.--(1) Except as provided by paragraph (2), a 
beneficiary enrolled in TRICARE Prime shall be required to obtain a 
referral for care through a designated primary care manager (or other 
care coordinator) prior to obtaining care under the TRICARE program.
    ``(2) The Secretary may waive the referral requirement in paragraph 
(1) in such circumstances as the Secretary may establish for purposes of 
this subsection.
    ``(3) The cost-sharing amounts for a beneficiary enrolled in TRICARE 
Prime who does not obtain a referral for care under paragraph (1) (or a 
waiver pursuant to paragraph (2) for such care) shall be determined 
under section 1075a(c) of this title.
    ``(b) Preauthorization.--A beneficiary enrolled in TRICARE Prime 
shall be required to obtain preauthorization only with respect to a 
referral for the following:
            ``(1) Inpatient hospitalization.
            ``(2) Inpatient care at a skilled nursing facility.
            ``(3) Inpatient care at a rehabilitation facility.

    ``(c) Prohibition Regarding Prior Authorization for Certain 
Referrals.--The Secretary of Defense shall ensure that no contract for 
managed care support under the TRICARE program includes any requirement 
that a managed care support contractor require a primary care or 
specialty care provider to obtain prior authorization before referring a 
patient to a specialty care provider that is part of the network of 
health care providers or institutions of the contractor.''.
    (d) Enrollment Periods.--
            (1) Annual periods and qualifying events.--Section 1099(b) 
        of title 10, United States Code, is amended by amending 
        paragraph (1) to read as follows:
            ``(1) allow covered beneficiaries to elect to enroll in a 
        health care plan, or modify a previous election, from eligible 
        health care plans designated by the Secretary of Defense 
        during--
                    ``(A) an annual open enrollment period; and
                    ``(B) any period based on a qualifying event 
                experienced by the beneficiary, as determined 
                appropriate by the Secretary; or''.
            (2) <<NOTE: 10 USC 1099 note.>>  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) <<NOTE: 10 USC 1099 note.>>  Grace period during first 
        year.--
                    (A) At any time during the one-year period beginning 
                on the date on which the initial annual open enrollment 
                period begins pursuant to section 1099(b)(1) of title 
                10,

[[Page 130 STAT. 2187]]

                United States Code, as amended by paragraph (1), a 
                covered beneficiary may make an election, or modify such 
                an election, described in such section.
                    (B) If during such one-year period an individual who 
                is eligible to enroll in the TRICARE program, but does 
                not elect to enroll in such program, receives health 
                care services for an episode of care that would be 
                covered under the TRICARE program if such individual 
                were enrolled in the TRICARE program, the Secretary--
                          (i) shall pay the out-of-network fees only for 
                      the first episode of care and inform the 
                      individual of the opportunity to enroll in the 
                      TRICARE program; and
                          (ii) may not pay any costs relating to any 
                      subsequent episode of care if such individual is 
                      not enrolled in the TRICARE program.
            (4) Transition plan.--Not later than March 1, 2017, the 
        Secretary shall provide to the Committees on Armed Services of 
        the Senate and the House of Representatives a briefing on the 
        transition plan of the Department of Defense for implementing an 
        annual enrollment period for TRICARE Prime and TRICARE Select 
        pursuant to section 1099(b)(1) of title 10, United States Code, 
        as amended by paragraph (1). Such plan shall include strategies 
        to notify each beneficiary of the changes to the TRICARE options 
        and the changes to the enrollment process.

    (e) <<NOTE: 10 USC 1073 note.>>  Termination of TRICARE Standard and 
TRICARE Extra.--Beginning on January 1, 2018, the Secretary of Defense 
may not carry out TRICARE Standard and TRICARE Extra under the TRICARE 
program. The Secretary shall ensure that any individual who is covered 
under TRICARE Standard or TRICARE Extra as of December 31, 2017, enrolls 
in TRICARE Prime or TRICARE Select, as the case may be, as of January 1, 
2018, for the individual to continue coverage under the TRICARE program.

    (f) Implementation Plan.--
            (1) In general.--Not later than June 1, 2017, the Secretary 
        of Defense shall submit to the Committees on Armed Services of 
        the House of Representatives and the Senate an implementation 
        plan to improve access to health care for TRICARE beneficiaries 
        pursuant to the amendments made by this section.
            (2) Elements.--The plan under paragraph (1) shall--
                    (A) ensure that at least 85 percent of the 
                beneficiary population under TRICARE Select is covered 
                by the network by January 1, 2018;
                    (B) ensure access standards for appointments for 
                health care that meet or exceed those of high-performing 
                health care systems in the United States, as determined 
                by the Secretary;
                    (C) establish mechanisms for monitoring compliance 
                with access standards;
                    (D) establish health care provider-to-beneficiary 
                ratios;
                    (E) monitor on a monthly basis complaints by 
                beneficiaries with respect to network adequacy and the 
                availability of health care providers;
                    (F) establish requirements for mechanisms to monitor 
                the responses to complaints by beneficiaries;

[[Page 130 STAT. 2188]]

                    (G) establish mechanisms to evaluate the quality 
                metrics of the network providers established under 
                section 728;
                    (H) include any recommendations for legislative 
                action the Secretary determines necessary to carry out 
                the plan; and
                    (I) include any other elements the Secretary 
                determines appropriate.

    (g) GAO Reviews.--
            (1) Implementation plan.--Not later than December 1, 2017, 
        the Comptroller General of the United States shall submit to the 
        Committees on Armed Services of the House of Representatives and 
        the Senate a review of the implementation plan of the Secretary 
        under paragraph (1) of subsection (f), including an assessment 
        of the adequacy of the plan in meeting the elements specified in 
        paragraph (2) of such subsection.
            (2) Network.--Not later than September 1, 2017, the 
        Comptroller General shall submit to the Committees on Armed 
        Services of the House of Representatives and the Senate a review 
        of the network established under TRICARE Extra, including the 
        following:
                    (A) An identification of the percent of 
                beneficiaries who are covered by the network.
                    (B) An assessment of the extent to which 
                beneficiaries are able to obtain appointments under 
                TRICARE Extra.
                    (C) The percent of network providers under TRICARE 
                Extra that accept new patients under the TRICARE 
                program.
                    (D) An assessment of the satisfaction of 
                beneficiaries under TRICARE Extra.

    (h) <<NOTE: 10 USC 1073 note.>>  Pilot Program on Incorporation of 
Value-based Health Care in Purchased Care Component of TRICARE 
Program.--
            (1) In general.--Not later than January 1, 2018, the 
        Secretary of Defense shall carry out a pilot program to 
        demonstrate and assess the feasibility of incorporating value-
        based health care methodology in the purchased care component of 
        the TRICARE program by reducing copayments or cost shares for 
        targeted populations of covered beneficiaries in the receipt of 
        high-value medications and services and the use of high-value 
        providers under such purchased care component, including by 
        exempting certain services from deductible requirements.
            (2) Requirements.--In carrying out the pilot program under 
        paragraph (1), the Secretary shall--
                    (A) identify each high-value medication and service 
                that is covered under the purchased care component of 
                the TRICARE program for which a reduction or elimination 
                of the copayment or cost share for such medication or 
                service would encourage covered beneficiaries to use the 
                medication or service;
                    (B) reduce or eliminate copayments or cost shares 
                for covered beneficiaries to receive high-value 
                medications and services;
                    (C) reduce or eliminate copayments or cost shares 
                for covered beneficiaries to receive health care 
                services from high-value providers;

[[Page 130 STAT. 2189]]

                    (D) credit the amount of any reduction or 
                elimination of a copayment or cost share under 
                subparagraph (B) or (C) for a covered beneficiary 
                towards meeting a deductible applicable to the covered 
                beneficiary in the purchased care component of the 
                TRICARE program to the same extent as if such reduction 
                or elimination had not applied; and
                    (E) develop a process to reimburse high-value 
                providers at rates higher than those rates for health 
                care providers that are not high-value providers.
            (3) Report on value-based health care methodology.--Not 
        later than 180 days after the date of the enactment of this Act, 
        the Secretary shall submit to the Committees on Armed Services 
        of the Senate and the House of Representatives a report that 
        includes the following:
                    (A) A list of each high-value medication and service 
                identified under paragraph (2)(A) for which the 
                copayment or cost share amount will be reduced or 
                eliminated under the pilot program to encourage covered 
                beneficiaries to use such medications and services 
                through the purchased care component of the TRICARE 
                program.
                    (B) For each high-value medication and service 
                identified under paragraph (2)(A), the amount of the 
                copayment or cost share required under the purchased 
                care component of the TRICARE program and the amount of 
                any reduction or elimination of such copayment or cost 
                share pursuant to the pilot program.
                    (C) A description of a plan to identify and 
                communicate to covered beneficiaries, through multiple 
                communication media--
                          (i) the list of high-value medications and 
                      services described in subparagraph (A); and
                          (ii) a list of high-value providers.
                    (D) A description of modifications, if any, to 
                existing health care contracts that may be required to 
                implement value-based health care methodology in the 
                purchased care component of the TRICARE program under 
                the pilot program and the estimated costs of those 
                contract modifications.
            (4) Comptroller general preliminary review and assessment.--
                    (A) Not later than March 1, 2021, the Comptroller 
                General of the United States shall submit to the 
                Committees on Armed Services of the Senate and the House 
                of Representatives a review and assessment of the 
                preliminary results of the pilot program.
                    (B) The review and assessment required under 
                subparagraph (A) shall include the following:
                          (i) An assessment of the extent of the use of 
                      value-based health care methodology in the 
                      purchased care component of the TRICARE program 
                      under the pilot program.
                          (ii) An analysis demonstrating how reducing or 
                      eliminating the copayment or cost share for each 
                      high-value medication and service identified under 
                      paragraph (2)(A) resulted in--
                                    (I) increased adherence to 
                                medication regimens;

[[Page 130 STAT. 2190]]

                                    (II) improvement of quality 
                                measures;
                                    (III) improvement of health 
                                outcomes;
                                    (IV) reduction of number of 
                                emergency room visits or 
                                hospitalizations; and
                                    (V) enhancement of experience of 
                                care for covered beneficiaries.
                          (iii) Such recommendations for incentivizing 
                      the use of high-value medications and services to 
                      improve health outcomes and the experience of care 
                      for beneficiaries as the Comptroller General 
                      considers appropriate.
            (5) Review and assessment of pilot program.--
                    (A) Not later than January 1, 2023, the Secretary 
                shall submit to the Committees on Armed Services of the 
                Senate and the House of Representatives a review and 
                assessment of the pilot program.
                    (B) The review and assessment required under 
                subparagraph (A) shall include the following:
                          (i) An assessment of the extent of the use of 
                      value-based health care methodology in the 
                      purchased care component of the TRICARE program 
                      under the pilot program.
                          (ii) An analysis demonstrating how reducing or 
                      eliminating the copayment or cost share for each 
                      high-value medication and service identified under 
                      paragraph (2)(A) resulted in--
                                    (I) increased adherence to 
                                medication regimens;
                                    (II) improvement of quality 
                                measures;
                                    (III) improvement of health 
                                outcomes; and
                                    (IV) enhancement of experience of 
                                care for covered beneficiaries.
                          (iii) A cost-benefit analysis of the 
                      implementation of value-based health care 
                      methodology in the purchased care component of the 
                      TRICARE program under the pilot program.
                          (iv) Such recommendations for incentivizing 
                      the use of high-value medications and services to 
                      improve health outcomes and the experience of care 
                      for covered beneficiaries as the Secretary 
                      considers appropriate.
            (6) Termination.--The Secretary may not carry out the pilot 
        program after December 31, 2022.

    (i) <<NOTE: 10 USC 1073 note.>>  Definitions.--In this section:
            (1) The terms ``uniformed services'', ``covered 
        beneficiary'', ``TRICARE Extra'', ``TRICARE for Life'', 
        ``TRICARE Prime'', and ``TRICARE Standard'', have the meaning 
        given those terms in section 1072 of title 10, United States 
        Code, as amended by subsection (j).
            (2) The term ``TRICARE Select'' means the self-managed, 
        preferred-provider network option under the TRICARE program 
        established by section 1075 of such title, as added by 
        subsection (a).
            (3) The term ``chronic conditions'' includes diabetes, 
        chronic obstructive pulmonary disease, asthma, congestive heart 
        failure, hypertension, history of stroke, coronary artery 
        disease, mood disorders, and such other diseases or conditions 
        as the Secretary considers appropriate.

[[Page 130 STAT. 2191]]

            (4) The term ``high-value medications and services'' means 
        prescription medications and clinical services for the 
        management of chronic conditions that the Secretary determines 
        would improve health outcomes and create health value for 
        covered beneficiaries (such as preventive care, primary and 
        specialty care, diagnostic tests, procedures, and durable 
        medical equipment).
            (5) The term ``high-value provider'' means an individual or 
        institutional health care provider that provides health care 
        under the purchased care component of the TRICARE program and 
        that consistently improves the experience of care, meets 
        established quality of care and effectiveness metrics, and 
        reduces the per capita costs of health care.
            (6) The term ``value-based health care methodology'' means a 
        methodology for identifying specific prescription medications 
        and clinical services provided under the TRICARE program for 
        which reduction of copayments, cost shares, or both, would 
        improve the management of specific chronic conditions because of 
        the high value and clinical effectiveness of such medications 
        and services for such chronic conditions.

    (j) Conforming Amendments.--
            (1) In general.--Title 10, United States Code, is amended as 
        follows:
                    (A) Section 1072 is amended--
                          (i) by striking paragraph (7) and inserting 
                      the following:
            ``(7) The term `TRICARE program' means the various programs 
        carried out by the Secretary of Defense under this chapter and 
        any other provision of law providing for the furnishing of 
        medical and dental care and health benefits to members and 
        former members of the uniformed services and their dependents, 
        including the following health plan options:
                    ``(A) TRICARE Prime.
                    ``(B) TRICARE Select.
                    ``(C) TRICARE for Life.''; and
                          (ii) by adding at the end the following new 
                      paragraphs:
            ``(11) The term `TRICARE Extra' means the preferred-provider 
        option of the TRICARE program made available prior to January 1, 
        2018, under which TRICARE Standard beneficiaries may obtain 
        discounts on cost sharing as a result of using TRICARE network 
        providers.
            ``(12) The term `TRICARE Select' means the self-managed, 
        preferred-provider network option under the TRICARE program 
        established by section 1075 of this title.
            ``(13) The term `TRICARE for Life' means the Medicare 
        wraparound coverage option of the TRICARE program made available 
        to the beneficiary by reason of section 1086(d) of this title.
            ``(14) The term `TRICARE Prime' means the managed care 
        option of the TRICARE program.
            ``(15) The term `TRICARE Standard' means the TRICARE program 
        made available prior to January 1, 2018, covering--
                    ``(A) medical care to which a dependent described in 
                section 1076(a)(2) of this title is entitled; and
                    ``(B) health benefits contracted for under the 
                authority of section 1079(a) of this title and subject 
                to the same

[[Page 130 STAT. 2192]]

                rates and conditions as apply to persons covered under 
                that section.''.
                    (B) Section 1076d is amended--
                          (i) in subsection (d)(1), by inserting after 
                      ``coverage.'' the following: ``Such premium shall 
                      apply instead of any enrollment fees required 
                      under section 1075 of this section.''; and
                          (ii) in subsection (f), by striking paragraph 
                      (2) and inserting the following new paragraph:
            ``(2) The term `TRICARE Reserve Select' means the TRICARE 
        Select self-managed, preferred-provider network option under 
        section 1075 made available to beneficiaries by reason of this 
        section and in accordance with subsection (d)(1).''; and
                          (iii) by striking ``TRICARE Standard'' each 
                      place it appears (including in the heading of such 
                      section) and inserting ``TRICARE Reserve Select''.
                    (C) Section 1076e is amended--
                          (i) in subsection (d)(1), by inserting after 
                      ``coverage.'' the following: ``Such premium shall 
                      apply instead of any enrollment fees required 
                      under section 1075 of this section.''; and
                          (ii) in subsection (f), by striking paragraph 
                      (2) and inserting the following new paragraph:
            ``(2) The term `TRICARE Retired Reserve' means the TRICARE 
        Select self-managed, preferred-provider network option under 
        section 1075 made available to beneficiaries by reason of this 
        section and in accordance with subsection (d)(1).'';
                          (iii) in subsection (b), by striking ``TRICARE 
                      Standard coverage at'' and inserting ``TRICARE 
                      coverage at''; and
                          (iv) by striking ``TRICARE Standard'' each 
                      place it appears (including in the heading of such 
                      section) and inserting ``TRICARE Retired 
                      Reserve''.
                    (D) Section 1079a is amended--
                          (i) in the section heading, by striking 
                      ``CHAMPUS'' and inserting ``TRICARE program''; and
                          (ii) by striking ``the Civilian Health and 
                      Medical Program of the Uniformed Services'' and 
                      inserting ``the TRICARE program''.
                    (E) Section 1099(c) is amended by striking paragraph 
                (2) and inserting the following new paragraph:
            ``(2) A plan under the TRICARE program.''.
                    (F) Section 1110b(c)(1) is amended by inserting 
                after ``(b).'' the following: ``Such premium shall apply 
                instead of any enrollment fees required under section 
                1075 of this section.''.
            (2) Clerical amendments.--The table of sections at the 
        beginning of chapter 55 of title 10, <<NOTE: 10 USC 1071 
        prec.>> United States Code, is further amended--
                    (A) in the item relating to section 1076d, by 
                striking ``TRICARE Standard'' and inserting ``TRICARE 
                Reserve Select'';
                    (B) in the item relating to section 1076e, by 
                striking ``TRICARE Standard'' and inserting ``TRICARE 
                Retired Reserve'';

[[Page 130 STAT. 2193]]

                    (C) in the item relating to section 1079a, by 
                striking ``CHAMPUS'' and inserting ``TRICARE program''; 
                and
                    (D) in the item relating to section 1095f, by 
                striking ``for specialty health care'' and inserting 
                ``and preauthorizations under TRICARE Prime''.
            (3) Conforming style.--Any new language inserted or added to 
        title 10, United States Code, by an amendment made by this 
        subsection shall conform to the typeface and typestyle of the 
        matter in which the language is so inserted or added.

    (k) <<NOTE: 10 USC 1072 note.>>  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. <<NOTE: 10 USC 1073c.>>  Administration of Defense 
                    Health Agency and military medical treatment 
                    facilities

    ``(a) Administration of Military Medical Treatment Facilities.--(1) 
Beginning October 1, 2018, the Director of the Defense Health Agency 
shall be responsible for the administration of each military medical 
treatment facility, including with respect to--
            ``(A) budgetary matters;
            ``(B) information technology;
            ``(C) health care administration and management;
            ``(D) administrative policy and procedure;
            ``(E) miliary medical construction; and
            ``(F) any other matters the Secretary of Defense determines 
        appropriate.

    ``(2) The commander of each military medical treatment facility 
shall be responsible for--
            ``(A) ensuring the readiness of the members of the armed 
        forces and civilian employees at such facility; and
            ``(B) furnishing the health care and medical treatment 
        provided at such facility.

    ``(3) The Secretary of Defense shall establish within the Defense 
Health Agency a professional staff to provide policy, oversight, and 
direction to carry out subsection (a). The Secretary shall carry out 
this paragraph by appointing the positions specified in subsections (b) 
and (c).
    ``(b) DHA Assistant Director.--(1) There is in the Defense Health 
Agency an Assistant Director for Health Care Administration. The 
Assistant Director shall--
            ``(A) be a career appointee within the Department; and
            ``(B) report directly to the Director of the Defense Health 
        Agency.

    ``(2) The Assistant Director shall be appointed from among 
individuals who have equivalent education and experience as a chief 
executive officer leading a large, civilian health care system.
    ``(3) The Assistant Director shall be responsible for the following:
            ``(A) Establishing priorities for health care administration 
        and management.

[[Page 130 STAT. 2194]]

            ``(B) Establishing policies, procedures, and direction for 
        the provision of direct care at military medical treatment 
        facilities.
            ``(C) Establishing priorities for budgeting matters with 
        respect to the provision of direct care at military medical 
        treatment facilities.
            ``(D) Establishing policies, procedures, and direction for 
        clinic management and operations at military medical treatment 
        facilities.
            ``(E) Establishing priorities for information technology at 
        and between the military medical treatment facilities.

    ``(c) DHA Deputy Assistant Directors.--(1)(A) There is in the 
Defense Health Agency a Deputy Assistant Director for Information 
Operations.
    ``(B) The Deputy Assistant Director for Information Operations shall 
be responsible for policies, management, and execution of information 
technology operations at and between the military medical treatment 
facilities.
    ``(2)(A) There is in the Defense Health Agency a Deputy Assistant 
Director for Financial Operations.
    ``(B) The Deputy Assistant Director for Financial Operations shall 
be responsible for the policy, procedures, and direction of budgeting 
matters and financial management with respect to the provision of direct 
care across the military health system.
    ``(3)(A) There is in the Defense Health Agency a Deputy Assistant 
Director for Health Care Operations.
    ``(B) The Deputy Assistant Director for Health Care Operations shall 
be responsible for the policy, procedures, and direction of health care 
administration in the military medical treatment facilities.
    ``(4)(A) There is in the Defense Health Agency a Deputy Assistant 
Director for Medical Affairs.
    ``(B) The Deputy Assistant Director for Medical Affairs shall be 
responsible for policy, procedures, and direction of clinical quality 
and process improvement, patient safety, infection control, graduate 
medical education, clinical integration, utilization review, risk 
management, patient experience, and civilian physician recruiting.
    ``(5) Each Deputy Assistant Director appointed under paragraphs (1) 
through (4) shall report directly to the Assistant Director for Health 
Care Administration.
    ``(d) Certain Responsibilities of DHA Director.--(1) In addition to 
the other duties of the Director of the Defense Health Agency, the 
Director shall coordinate with the Joint Staff Surgeon to ensure that 
the Director most effectively carries out the responsibilities of the 
Defense Health Agency as a combat support agency under section 193 of 
this title.
    ``(2) The responsibilities of the Director shall include the 
following:
            ``(A) Ensuring that the Defense Health Agency meets the 
        operational needs of the commanders of the combatant commands.
            ``(B) Coordinating with the military departments to ensure 
        that the staffing at the military medical treatment facilities 
        supports readiness requirements for members of the armed forces 
        and health care personnel.

    ``(e) Definitions.--In this section:
            ``(1) The term `career appointee' has the meaning given that 
        term in section 3132(a)(4) of title 5.

[[Page 130 STAT. 2195]]

            ``(2) The term `Defense Health Agency' means the Defense 
        Agency established pursuant to Department of Defense Directive 
        5136.13, or such successor Defense Agency.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter <<NOTE: 10 USC 1071 prec.>> is amended 
        by inserting after the item relating to section 1073b the 
        following new item:

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

    (b) Positions of Surgeon General in the Armed Forces.--
            (1) Surgeon general of the army.--Section 3036 of title 10, 
        United States Code, is amended--
                    (A) in subsection (d), by striking ``(1)'';
                    (B) by redesignating subsection (e) as subsection 
                (g);
                    (C) by inserting after subsection (d) a new 
                subsection (e);
                    (D) by transferring paragraphs (2) and (3) of 
                subsection (d) to subsection (e), as added by 
                subparagraph (C), and redesignating such paragraphs as 
                paragraphs (1) and (2), respectively; and
                    (E) by adding after subsection (e), as added by 
                subparagraph (C), the following new subsection (f):

    ``(f)(1) The Surgeon General serves as the principal advisor to the 
Secretary of the Army and the Chief of Staff of the Army on all health 
and medical matters of the Army, including strategic planning and policy 
development relating to such matters.
    ``(2) The Surgeon General serves as the chief medical advisor of the 
Army to the Director of the Defense Health Agency on matters pertaining 
to military health readiness requirements and safety of members of the 
Army.
    ``(3) The Surgeon General, acting under the authority, direction, 
and control of the Secretary of the Army, shall recruit, organize, 
train, and equip, medical personnel of the Army.''.
            (2) Surgeon general of the navy.--
                    (A) In general.--Section 5137 of title 10, United 
                States Code, is amended to read as follows:
``Sec. 5137. Surgeon General: appointment; duties

    ``(a) Appointment.--The Surgeon General of the Navy shall be 
appointed by the President, by and with the advice and consent of the 
Senate, for a term of four years, from officers on the active-duty list 
of the Navy in any corps of the Navy Medical Department.
    ``(b) Duties.--(1) The Surgeon General serves as the Chief of the 
Bureau of Medicine and Surgery and serves as the principal advisor to 
the Secretary of the Navy and the Chief of Naval Operations on all 
health and medical matters of the Navy and the Marine Corps, including 
strategic planning and policy development relating to such matters.
    ``(2) The Surgeon General serves as the chief medical advisor of the 
Navy and the Marine Corps to the Director of the Defense Health Agency 
on matters pertaining to military health readiness requirements and 
safety of members of the Navy and the Marine Corps.
    ``(3) The Surgeon General, acting under the authority, direction, 
and control of the Secretary of the Navy, shall recruit, organize, 
train, and equip, medical personnel of the Navy and the Marine Corps.''.

[[Page 130 STAT. 2196]]

                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 513 of such title <<NOTE: 10 
                USC 5131 prec.>> 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 <<NOTE: 10 
                USC 8031 prec.>> is amended by striking the item 
                relating to section 8036 and inserting the following new 
                item:

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

    (c) <<NOTE: 10 USC 1073c note.>>  Appointments.--The Secretary of 
Defense shall make appointments of the positions under section 1073c of 
title 10, United States Code, as added by subsection (a)--
            (1) by not later than October 1, 2018; and
            (2) by not increasing the number of full-time equivalent 
        employees of the Defense Health Agency.

    (d) Implementation Plan.--
            (1) In general.--The Secretary of Defense shall develop a 
        plan to implement section 1073c of title 10, United States Code, 
        as added by subsection (a).
            (2) Elements.--The plan developed under paragraph (1) shall 
        include the following:
                    (A) How the Secretary will carry out subsection (a) 
                of such section 1073c.
                    (B) Efforts to eliminate duplicative activities 
                carried out by the elements of the Defense Health Agency 
                and the military departments.
                    (C) Efforts to maximize efficiencies in the 
                activities carried out by the Defense Health Agency.
                    (D) How the Secretary will implement such section 
                1073c in a manner that reduces the number of members of 
                the Armed Forces, civilian employees who are full-time

[[Page 130 STAT. 2197]]

                equivalent employees, and contractors relating to the 
                headquarters activities of the military health system, 
                as of the date of the enactment of this Act.

    (e) Reports.--
            (1) Interim report.--Not later than March 1, 2017, the 
        Secretary shall submit to the Committees on Armed Services of 
        the House of Representatives and the Senate a report 
        containing--
                    (A) a preliminary draft of the plan developed under 
                subsection (d)(1); and
                    (B) any recommendations for legislative actions the 
                Secretary determines necessary to carry out the plan.
            (2) Final report.--Not later than March 1, 2018, the 
        Secretary shall submit to the Committees on Armed Services of 
        the House of Representatives and the Senate a report containing 
        the final version of the plan developed under subsection (d)(1).
            (3) Comptroller general reviews.--
                    (A) The Comptroller General of the United States 
                shall submit to the Committees on Armed Services of the 
                House of Representatives and the Senate--
                          (i) a review of the preliminary draft of the 
                      plan submitted under paragraph (1) by not later 
                      than September 1, 2017; and
                          (ii) a review of the final version of the plan 
                      submitted under paragraph (2) by not later than 
                      September 1, 2018.
                    (B) Each review of the plan conducted under 
                subparagraph (A) shall determine whether the Secretary 
                has addressed the required elements for the plan under 
                subsection (d)(2).
SEC. 703. MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Administration.--
            (1) In general.--Chapter 55 of title 10, United States Code, 
        as amended by section 702, is further amended by inserting after 
        section 1073c the following new section:
``Sec. 1073d. <<NOTE: 10 USC 1073d.>>  Military medical treatment 
                    facilities

    ``(a) In General.--To support the medical readiness of the armed 
forces and the readiness of medical personnel, the Secretary of Defense, 
in consultation with the Secretaries of the military departments, shall 
maintain the military medical treatment facilities described in 
subsections (b), (c), and (d).
    ``(b) Medical Centers.--(1) The Secretary of Defense shall maintain 
medical centers in areas with a large population of members of the armed 
forces and covered beneficiaries.
    ``(2) Medical centers shall serve as referral facilities for members 
and covered beneficiaries who require comprehensive health care services 
that support medical readiness.
    ``(3) Medical centers shall consist of the following:
            ``(A) Inpatient and outpatient tertiary care facilities that 
        incorporate specialty and subspecialty care.
            ``(B) Graduate medical education programs.
            ``(C) Residency training programs.
            ``(D) Level one or level two trauma care capabilities.

[[Page 130 STAT. 2198]]

    ``(4) The Secretary may designate a medical center as a regional 
center of excellence for unique and highly specialized health care 
services, including with respect to polytrauma, organ transplantation, 
and burn care.
    ``(c) Hospitals.--(1) The Secretary of Defense shall maintain 
hospitals in areas where civilian health care facilities are unable to 
support the health care needs of members of the armed forces and covered 
beneficiaries.
    ``(2) Hospitals shall provide--
            ``(A) inpatient and outpatient health services to maintain 
        medical readiness; and
            ``(B) such other programs and functions as the Secretary 
        determines appropriate.

    ``(3) Hospitals shall consist of inpatient and outpatient care 
facilities with limited specialty care that the Secretary determines--
            ``(A) is cost effective; or
            ``(B) is not available at civilian health care facilities in 
        the area of the hospital.

    ``(d) Ambulatory Care Centers.--(1) The Secretary of Defense shall 
maintain ambulatory care centers in areas where civilian health care 
facilities are able to support the health care needs of members of the 
armed forces and covered beneficiaries.
    ``(2) Ambulatory care centers shall provide the outpatient health 
services required to maintain medical readiness, including with respect 
to partnerships established pursuant to section 706 of the National 
Defense Authorization Act for Fiscal Year 2017.
    ``(3) Ambulatory care centers shall consist of outpatient care 
facilities with limited specialty care that the Secretary determines--
            ``(A) is cost effective; or
            ``(B) is not available at civilian health care facilities in 
        the area of the ambulatory care center.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter, as amended by section 702, <<NOTE: 10 
        USC 1071 prec.>> is further amended by inserting after the item 
        relating to section 1073c the following new item:

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

            (3) <<NOTE: 10 USC 1073d note.>>  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) <<NOTE: 10 USC 1073d note.>>  Exception.--In carrying out 
section 1073d of title 10, United States Code, as added by subsection 
(a)(1), the Secretary of Defense may not restructure or realign the 
infrastructure of, or modify the health care services provided by, a 
military medical treatment facility unless the Secretary determines 
that, if such a restructure, realignment, or modification will eliminate 
the ability of a covered beneficiary to access health care services at a 
military medical treatment facility, the covered beneficiary will be 
able to access such health care services through the purchased care 
component of the TRICARE program.

[[Page 130 STAT. 2199]]

    (c) Update of Study.--
            (1) In general.--The Secretary of Defense, in collaboration 
        with the Secretaries of the military departments, shall update 
        the report described in paragraph (2) to address the 
        restructuring or realignment of military medical treatment 
        facilities pursuant to section 1073d of title 10, United States 
        Code, as added by subsection (a), including with respect to any 
        expansions or consolidations of such facilities.
            (2) Report described.--The report described in this 
        paragraph is the Military Health System Modernization Study 
        dated May 29th, 2015, required by section 713(a)(2) of the Carl 
        Levin and Howard P. ``Buck'' McKeon National Defense 
        Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128 
        Stat. 3414).
            (3) Submission.--Not later than 270 days after the date of 
        the enactment of this Act, the Secretary of Defense shall submit 
        to the congressional defense committees the updated report under 
        paragraph (1).

    (d) Implementation Plan.--
            (1) In general.--Not later than two years after the date of 
        the enactment of this Act, the Secretary of Defense shall submit 
        to the congressional defense committees an implementation plan 
        to restructure or realign the military medical treatment 
        facilities pursuant to section 1073d of title 10, United States 
        Code, as added by subsection (a).
            (2) Elements.--The implementation plan under paragraph (1) 
        shall include the following:
                    (A) With respect to each military medical treatment 
                facility--
                          (i) whether the facility will be realigned or 
                      restructured under the plan;
                          (ii) whether the functions of such facility 
                      will be expanded or consolidated;
                          (iii) the costs of such realignment or 
                      restructuring;
                          (iv) a description of any changes to the 
                      military and civilian personnel assigned to such 
                      facility as of the date of the plan;
                          (v) a timeline for such realignment or 
                      restructuring;
                          (vi) the justifications for such realignment 
                      or restructuring, including an assessment of the 
                      capacity of the civilian health care facilities 
                      located near such facility;
                          (vii) a comprehensive assessment of the health 
                      care services provided at the facility;
                          (viii) a description of the current 
                      accessibility of covered beneficiaries to health 
                      care services provided at the facility and 
                      proposed modifications to that accessibility, 
                      including with respect to types of services 
                      provided;
                          (ix) a description of the current availability 
                      of urgent care, emergent care, and specialty care 
                      at the facility and in the TRICARE provider 
                      network in the area in which the facility is 
                      located, and proposed modifications to the 
                      availability of such care;
                          (x) a description of the current level of 
                      coordination between the facility and local health 
                      care providers

[[Page 130 STAT. 2200]]

                      in the area in which the facility is located and 
                      proposed modifications to such level of 
                      coordination; and
                          (xi) a description of any unique challenges to 
                      providing health care at the facility, with a 
                      focus on challenges relating to rural, remote, and 
                      insular areas, as appropriate.
                    (B) A description of the relocation of the graduate 
                medical education programs and the residency programs.
                    (C) A description of the plans to assist members of 
                the Armed Forces and covered beneficiaries with travel 
                and lodging, if necessary, in connection with the 
                receipt of specialty care services at regional centers 
                of excellence designated under subsection (b)(4) of such 
                section 1073d.
                    (D) A description of how the Secretary will carry 
                out subsection (b).
            (3) GAO report.--Not later than 60 days after the date on 
        which the Secretary of Defense submits the report under 
        paragraph (1), the Comptroller General of the United States 
        shall submit to the Committees on Armed Services of the Senate 
        and the House of Representatives a review of such report.

    (e) <<NOTE: 10 USC 1073d note.>>  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. <<NOTE: 10 USC 1077a.>>  Access to military medical 
                    treatment facilities and other facilities

    ``(a) Urgent Care.--(1) The Secretary of Defense shall ensure that 
military medical treatment facilities, at locations the Secretary 
determines appropriate, provide urgent care services for members of the 
armed forces and covered beneficiaries until 11:00 p.m. each day.
    ``(2) With respect to areas in which a military medical treatment 
facility covered by paragraph (1) is not located, the Secretary shall 
ensure that members of the armed forces and covered beneficiaries may 
access urgent care clinics through the health care provider network 
under the TRICARE program.
    ``(3) A covered beneficiary may access urgent care services without 
the need for preauthorization for such services.
    ``(4) The Secretary shall--
            ``(A) publish information about changes in access to urgent 
        care under the TRICARE program--
                    ``(i) on the primary publicly available Internet 
                website of the Department; and
                    ``(ii) on the primary publicly available Internet 
                website of each military medical treatment facility; and
            ``(B) ensure that such information is made available on the 
        publicly available Internet website of each current managed care 
        support contractor that has established a health care provider 
        network under the TRICARE program.

    ``(b) Nurse Advice Line.--The Secretary shall ensure that the nurse 
advice line of the Department directs covered beneficiaries seeking 
access to care to the source of the most appropriate level

[[Page 130 STAT. 2201]]

of health care required to treat the medical conditions of the 
beneficiaries, including urgent care services described in subsection 
(a).
    ``(c) Primary Care Clinics.--(1) The Secretary shall ensure that 
primary care clinics at military medical treatment facilities are 
available for members of the armed forces and covered beneficiaries 
between the hours determined appropriate under paragraph (2), including 
with respect to expanded hours described in subparagraph (B) of such 
paragraph.
    ``(2)(A) The Secretary shall determine the hours that each primary 
care clinic at a military medical treatment facility is available for 
members of the armed forces and covered beneficiaries based on--
            ``(i) the needs of the military medical treatment facility 
        to meet the access standards under the TRICARE Prime program; 
        and
            ``(ii) the primary care utilization patterns of members and 
        covered beneficiaries at such military medical treatment 
        facility.

    ``(B) The primary care clinic hours at a military medical treatment 
facility determined under subparagraph (A) shall include expanded hours 
beyond regular business hours during weekdays and the weekend if the 
Secretary determines under such subparagraph that sufficient demand 
exists at the military medical treatment facility for such expanded 
primary care clinic hours.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter <<NOTE: 10 USC 1071 prec.>> 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) <<NOTE: 10 USC 1077a note.>>  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. <<NOTE: 10 USC 1073a note.>>  VALUE-BASED PURCHASING AND 
                        ACQUISITION OF MANAGED CARE SUPPORT 
                        CONTRACTS FOR TRICARE PROGRAM.

    (a) Value-based Health Care.--
            (1) In general.--The Secretary of Defense shall develop and 
        implement value-based incentive programs as part of any contract 
        awarded under chapter 55 of title 10, United States Code, for 
        the provision of health care services to covered beneficiaries 
        to encourage health care providers under the TRICARE program 
        (including physicians, hospitals, and other persons and 
        facilities involved in providing such health care services) to 
        improve the following:
                    (A) The quality of health care provided to covered 
                beneficiaries under the TRICARE program.
                    (B) The experience of covered beneficiaries in 
                receiving health care under the TRICARE program.
                    (C) The health of covered beneficiaries.
            (2) Value-based incentive programs.--
                    (A) Development.--In developing value-based 
                incentive programs under paragraph (1), the Secretary 
                shall--

[[Page 130 STAT. 2202]]

                          (i) link payments to health care providers 
                      under the TRICARE program to improved performance 
                      with respect to quality, cost, and reducing the 
                      provision of inappropriate care;
                          (ii) consider the characteristics of the 
                      population of covered beneficiaries affected by 
                      the value-based incentive program;
                          (iii) consider how the value-based incentive 
                      program would affect the receipt of health care 
                      under the TRICARE program by such covered 
                      beneficiaries;
                          (iv) establish or maintain an assurance that 
                      such covered beneficiaries will have timely access 
                      to health care during the operation of the value-
                      based incentive program;
                          (v) ensure that such covered beneficiaries do 
                      not incur any additional costs by reason of the 
                      value-based incentive program; and
                          (vi) consider such other factors as the 
                      Secretary considers appropriate.
                    (B) Scope and metrics.--With respect to a value-
                based incentive program developed and implemented under 
                paragraph (1), the Secretary shall ensure that--
                          (i) the size, scope, and duration of the 
                      value-based incentive program is reasonable in 
                      relation to the purpose of the value-based 
                      incentive program; and
                          (ii) the value-based incentive program relies 
                      on the core quality performance metrics adopted 
                      pursuant to section 728.
            (3) Use of existing models.--In developing a value-based 
        incentive program under paragraph (1), the Secretary may adapt a 
        value-based incentive program conducted by a TRICARE managed 
        care support contractor, the Centers for Medicare & Medicaid 
        Services, or any other Federal Government, State government, or 
        commercial health care program.

    (b) Transfer of Contracting Responsibility.--With respect to the 
acquisition of any managed care support contracts under the TRICARE 
program initiated after the date of the enactment of this Act, the 
Secretary of Defense shall transfer contracting responsibility for the 
solicitation and award of such contracts from the Defense Health Agency 
to the Office of the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.
    (c) Acquisition of Contracts.--
            (1) Strategy.--Not later than January 1, 2018, the Secretary 
        of Defense shall develop and implement a strategy to ensure that 
        managed care support contracts under the TRICARE program entered 
        into with private sector entities, other than overseas medical 
        support contracts--
                    (A) improve access to health care for covered 
                beneficiaries;
                    (B) improve health outcomes for covered 
                beneficiaries;
                    (C) improve the quality of health care received by 
                covered beneficiaries;
                    (D) enhance the experience of covered beneficiaries 
                in receiving health care; and
                    (E) lower per capita costs to the Department of 
                Defense of health care provided to covered 
                beneficiaries.
            (2) Applicability of strategy.--

[[Page 130 STAT. 2203]]

                    (A) In general.--The strategy required by paragraph 
                (1) shall apply to all managed care support contracts 
                under the TRICARE program entered into with private 
                sector entities.
                    (B) Modification of contracts.--Contracts entered 
                into prior to the implementation of the strategy 
                required by paragraph (1) shall be modified to ensure 
                consistency with such strategy.
            (3) Local, regional, and national health plans.--In 
        developing and implementing the strategy required by paragraph 
        (1), the Secretary shall ensure that local, regional, and 
        national health plans have an opportunity to participate in the 
        competition for managed care support contracts under the TRICARE 
        program.
            (4) Continuous innovation.--The strategy required by 
        paragraph (1) shall include incentives for the incorporation of 
        innovative ideas and solutions into managed care support 
        contracts under the TRICARE program through the use of teaming 
        agreements, subcontracts, and other contracting mechanisms that 
        can be used to develop and continuously refresh high-performing 
        networks of health care providers at the national, regional, and 
        local level.
            (5) Elements of strategy.--The strategy required by 
        paragraph (1) shall provide for the following with respect to 
        managed care support contracts under the TRICARE program:
                    (A) The maximization of flexibility in the design 
                and configuration of networks of individual and 
                institutional health care providers, including a focus 
                on the development of high-performing networks of health 
                care providers.
                    (B) The establishment of an integrated medical 
                management system between military medical treatment 
                facilities and health care providers in the private 
                sector that, when appropriate, effectively coordinates 
                and integrates health care across the continuum of care.
                    (C) With respect to telehealth services--
                          (i) the maximization of the use of such 
                      services to provide real-time interactive 
                      communications between patients and health care 
                      providers and remote patient monitoring; and
                          (ii) the use of standardized payment methods 
                      to reimburse health care providers for the 
                      provision of such services.
                    (D) The use of value-based reimbursement 
                methodologies, including through the use of value-based 
                incentive programs under subsection (a), that transfer 
                financial risk to health care providers and managed care 
                support contractors.
                    (E) The use of financial incentives for contractors 
                and health care providers to receive an equitable share 
                in the cost savings to the Department resulting from 
                improvement in health outcomes for covered beneficiaries 
                and the experience of covered beneficiaries in receiving 
                health care.
                    (F) The use of incentives that emphasize prevention 
                and wellness for covered beneficiaries receiving health 
                care services from private sector entities to seek such 
                services from high-value health care providers.

[[Page 130 STAT. 2204]]

                    (G) The adoption of a streamlined process for 
                enrollment of covered beneficiaries to receive health 
                care and timely assignment of primary care managers to 
                covered beneficiaries.
                    (H) The elimination of the requirement for a 
                referral to be authorized prior receiving specialty care 
                services at a facility of the Department of Defense or 
                through the TRICARE program.
                    (I) The use of incentives to encourage covered 
                beneficiaries to participate in medical and lifestyle 
                intervention programs.
            (6) Rural, remote, and isolated areas.--In developing and 
        implementing the strategy required by paragraph (1), the 
        Secretary shall--
                    (A) assess the unique characteristics of providing 
                health care services in Alaska, Hawaii, and the 
                territories and possessions of the United States, and in 
                rural, remote, or isolated locations in the contiguous 
                48 States;
                    (B) consider the various challenges inherent in 
                developing robust networks of health care providers in 
                those locations;
                    (C) develop a provider reimbursement rate structure 
                in those locations that ensures--
                          (i) timely access of covered beneficiaries to 
                      health care services;
                          (ii) the delivery of high-quality primary and 
                      specialty care;
                          (iii) improvement in health outcomes for 
                      covered beneficiaries; and
                          (iv) an enhanced experience of care for 
                      covered beneficiaries; and
                    (D) ensure that managed care support contracts under 
                the TRICARE program in those locations will--
                          (i) establish individual and institutional 
                      provider networks that will provide timely access 
                      to care for covered beneficiaries, including 
                      pursuant to such networks relating to an Indian 
                      tribe or tribal organization that is party to the 
                      Alaska Native Health Compact with the Indian 
                      Health Service or has entered into a contract with 
                      the Indian Health Service to provide health care 
                      in rural Alaska or other locations in the United 
                      States; and
                          (ii) deliver high-quality care, better health 
                      outcomes, and a better experience of care for 
                      covered beneficiaries.

    (d) Report Prior to Certain Contract Modifications.--Not later than 
60 days before the date on which the Secretary of Defense first modifies 
a contract awarded under chapter 55 of title 10, United States Code, to 
implement a value-based incentive program under subsection (a), or the 
managed care support contract acquisition strategy under subsection (c), 
the Secretary shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on any implementation 
plan of the Secretary with respect to such value-based incentive program 
or managed care support contract acquisition strategy.
    (e) Comptroller General Report.--

[[Page 130 STAT. 2205]]

            (1) In general.--Not later than 180 days after the date on 
        which the Secretary submits the report under subsection (d), the 
        Comptroller General of the United States shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report that assesses the compliance of the 
        Secretary of Defense with the requirements of subsection (a) and 
        subsection (c).
            (2) Elements.--The report required by paragraph (1) shall 
        include an assessment of the following:
                    (A) Whether the approach of the Department of 
                Defense for acquiring managed care support contracts 
                under the TRICARE program--
                          (i) improves access to care;
                          (ii) improves health outcomes;
                          (iii) improves the experience of care for 
                      covered beneficiaries; and
                          (iv) lowers per capita health care costs.
                    (B) Whether the Department has, in its requirements 
                for managed care support contracts under the TRICARE 
                program, allowed for--
                          (i) maximum flexibility in network design and 
                      development;
                          (ii) integrated medical management between 
                      military medical treatment facilities and network 
                      providers;
                          (iii) the maximum use of the full range of 
                      telehealth services;
                          (iv) the use of value-based reimbursement 
                      methods that transfer financial risk to health 
                      care providers and managed care support 
                      contractors;
                          (v) the use of prevention and wellness 
                      incentives to encourage covered beneficiaries to 
                      seek health care services from high-value 
                      providers;
                          (vi) a streamlined enrollment process and 
                      timely assignment of primary care managers;
                          (vii) the elimination of the requirement to 
                      seek authorization for referrals for specialty 
                      care services;
                          (viii) the use of incentives to encourage 
                      covered beneficiaries to engage in medical and 
                      lifestyle intervention programs; and
                          (ix) the use of financial incentives for 
                      contractors and health care providers to receive 
                      an equitable share in cost savings resulting from 
                      improvements in health outcomes and the experience 
                      of care for covered beneficiaries.
                    (C) Whether the Department has considered, in 
                developing requirements for managed care support 
                contracts under the TRICARE program, the following:
                          (i) The unique characteristics of providing 
                      health care services in Alaska, Hawaii, and the 
                      territories and possessions of the United States, 
                      and in rural, remote, or isolated locations in the 
                      contiguous 48 States;
                          (ii) The various challenges inherent in 
                      developing robust networks of health care 
                      providers in those locations.

[[Page 130 STAT. 2206]]

                          (iii) A provider reimbursement rate structure 
                      in those locations that ensures--
                                    (I) timely access of covered 
                                beneficiaries to health care services;
                                    (II) the delivery of high-quality 
                                primary and specialty care;
                                    (III) improvement in health outcomes 
                                for covered beneficiaries; and
                                    (IV) an enhanced experience of care 
                                for covered beneficiaries.

    (f) Definitions.--In this section:
            (1) The terms ``covered beneficiary'' and ``TRICARE 
        program'' have the meaning given those terms in section 1072 of 
        title 10, United States Code.
            (2) The term ``high-performing networks of health care 
        providers'' means networks of health care providers that, in 
        addition to such other requirements as the Secretary of Defense 
        may specify for purposes of this section, do the following:
                    (A) Deliver high quality health care as measured by 
                leading health quality measurement organizations such as 
                the National Committee for Quality Assurance and the 
                Agency for Healthcare Research and Quality.
                    (B) Achieve greater efficiency in the delivery of 
                health care by identifying and implementing within such 
                network improvement opportunities that guide patients 
                through the entire continuum of care, thereby reducing 
                variations in the delivery of health care and preventing 
                medical errors and duplication of medical services.
                    (C) Improve population-based health outcomes by 
                using a team approach to deliver case management, 
                prevention, and wellness services to high-need and high-
                cost patients.
                    (D) Focus on preventive care that emphasizes--
                          (i) early detection and timely treatment of 
                      disease;
                          (ii) periodic health screenings; and
                          (iii) education regarding healthy lifestyle 
                      behaviors.
                    (E) Coordinate and integrate health care across the 
                continuum of care, connecting all aspects of the health 
                care received by the patient, including the patient's 
                health care team.
                    (F) Facilitate access to health care providers, 
                including--
                          (i) after-hours care;
                          (ii) urgent care; and
                          (iii) through telehealth appointments, when 
                      appropriate.
                    (G) Encourage patients to participate in making 
                health care decisions.
                    (H) Use evidence-based treatment protocols that 
                improve the consistency of health care and eliminate 
                ineffective, wasteful health care practices.
SEC. 706. <<NOTE: 10 USC 1096 note.>>  ESTABLISHMENT OF HIGH 
                        PERFORMANCE MILITARY-CIVILIAN INTEGRATED 
                        HEALTH DELIVERY SYSTEMS.

    (a) In General.--Not later than January 1, 2018, the Secretary of 
Defense shall establish military-civilian integrated health

[[Page 130 STAT. 2207]]

delivery systems through partnerships with other health systems, 
including local or regional health systems in the private sector--
            (1) to improve access to health care for covered 
        beneficiaries;
            (2) to enhance the experience of covered beneficiaries in 
        receiving health care;
            (3) to improve health outcomes for covered beneficiaries;
            (4) to share resources between the Department of Defense and 
        the private sector, including such staff, equipment, and 
        training assets as may be required to carry out such integrated 
        health delivery systems;
            (5) to maintain services within military treatment 
        facilities that are essential for the maintenance of operational 
        medical force readiness skills of health care providers of the 
        Department; and
            (6) to provide members of the Armed Forces with additional 
        training opportunities to maintain such readiness skills.

    (b) Elements of Systems.--Each military-civilian integrated health 
delivery system established under subsection (a) shall--
            (1) deliver high quality health care as measured by leading 
        national health quality measurement organizations;
            (2) achieve greater efficiency in the delivery of health 
        care by identifying and implementing within each such system 
        improvement opportunities that guide patients through the entire 
        continuum of care, thereby reducing variations in the delivery 
        of health care and preventing medical errors and duplication of 
        medical services;
            (3) improve population-based health outcomes by using a team 
        approach to deliver case management, prevention, and wellness 
        services to high-need and high-cost patients;
            (4) focus on preventive care that emphasizes--
                    (A) early detection and timely treatment of disease;
                    (B) periodic health screenings; and
                    (C) education regarding healthy lifestyle behaviors;
            (5) coordinate and integrate health care across the 
        continuum of care, connecting all aspects of the health care 
        received by the patient, including the patient's health care 
        team;
            (6) facilitate access to health care providers, including--
                    (A) after-hours care;
                    (B) urgent care; and
                    (C) through telehealth appointments, when 
                appropriate;
            (7) encourage patients to participate in making health care 
        decisions;
            (8) use evidence-based treatment protocols that improve the 
        consistency of health care and eliminate ineffective, wasteful 
        health care practices; and
            (9) improve coordination of behavioral health services with 
        primary health care.

    (c) Agreements.--
            (1) In general.--In establishing military-civilian 
        integrated health delivery systems through partnerships under 
        subsection (a), the Secretary shall seek to enter into memoranda 
        of understanding or contracts between military treatment 
        facilities and health maintenance organizations, health care 
        centers of excellence, public or private academic medical 
        institutions,

[[Page 130 STAT. 2208]]

        regional health organizations, integrated health systems, 
        accountable care organizations, and such other health systems as 
        the Secretary considers appropriate.
            (2) Private sector care.--Memoranda of understanding and 
        contracts entered into under paragraph (1) shall ensure that 
        covered beneficiaries are eligible to enroll in and receive 
        medical services under the private sector components of 
        military-civilian integrated health delivery systems established 
        under subsection (a).
            (3) Value-based reimbursement methodologies.--The Secretary 
        shall incorporate value-based reimbursement methodologies, such 
        as capitated payments, bundled payments, or pay for performance, 
        into memoranda of understanding and contracts entered into under 
        paragraph (1) to reimburse entities for medical services 
        provided to covered beneficiaries under such memoranda of 
        understanding and contracts.
            (4) Quality of care.--Each memorandum of understanding or 
        contract entered into under paragraph (1) shall ensure that the 
        quality of services received by covered beneficiaries through a 
        military-civilian integrated health delivery system under such 
        memorandum of understanding or contract is at least comparable 
        to the quality of services received by covered beneficiaries 
        from a military treatment facility.

    (d) Covered Beneficiary Defined.--In this section, the term 
``covered beneficiary'' has the meaning given that term in section 1072 
of title 10, United States Code.
SEC. 707. <<NOTE: 10 USC 1071 note.>>  JOINT TRAUMA SYSTEM.

    (a) Plan.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall submit 
        to the Committees on Armed Services of the House of 
        Representatives and the Senate an implementation plan to 
        establish a Joint Trauma System within the Defense Health Agency 
        that promotes improved trauma care to members of the Armed 
        Forces and other individuals who are eligible to be treated for 
        trauma at a military medical treatment facility.
            (2) Implementation.--The Secretary shall implement the plan 
        under paragraph (1) after a 90-day period has elapsed following 
        the date on which the Comptroller General of the United States 
        is required to submit to the Committees on Armed Services of the 
        House of Representatives and the Senate the review under 
        subsection (c). In implementing such plan, the Secretary shall 
        take into account any recommendation made by the Comptroller 
        General under such review.

    (b) Elements.--The Joint Trauma System described in subsection 
(a)(1) shall include the following elements:
            (1) Serve as the reference body for all trauma care provided 
        across the military health system.
            (2) Establish standards of care for trauma services provided 
        at military medical treatment facilities.
            (3) Coordinate the translation of research from the centers 
        of excellence of the Department of Defense into standards of 
        clinical trauma care.
            (4) Coordinate the incorporation of lessons learned from the 
        trauma education and training partnerships pursuant to section 
        708 into clinical practice.

[[Page 130 STAT. 2209]]

    (c) Review.--Not later than 180 days after the date on which the 
Secretary submits to the Committees on Armed Services of the House of 
Representatives and the Senate the implementation plan under subsection 
(a)(1), the Comptroller General of the United States shall submit to 
such committees a review of such plan to determine if each element under 
subsection (b) is included in such plan.
    (d) Review of Military Trauma System.--In establishing a Joint 
Trauma System, the Secretary of Defense may seek to enter into an 
agreement with a non-governmental entity with subject matter experts 
to--
            (1) conduct a system-wide review of the military trauma 
        system, including a comprehensive review of combat casualty care 
        and wartime trauma systems during the period beginning on 
        January 1, 2001, and ending on the date of the review, including 
        an assessment of lessons learned to improve combat casualty care 
        in future conflicts; and
            (2) make publicly available a report containing such review 
        and recommendations to establish a comprehensive trauma system 
        for the Armed Forces.
SEC. 708. <<NOTE: 10 USC 1071 note.>>  JOINT TRAUMA EDUCATION AND 
                        TRAINING DIRECTORATE.

    (a) Establishment.--The Secretary of Defense shall establish a Joint 
Trauma Education and Training Directorate (in this section referred to 
as the ``Directorate'') to ensure that the traumatologists of the Armed 
Forces maintain readiness and are able to be rapidly deployed for future 
armed conflicts. The Secretary shall carry out this section in 
collaboration with the Secretaries of the military departments.
    (b) Duties.--The duties of the Directorate are as follows:
            (1) To enter into and coordinate the partnerships under 
        subsection (c).
            (2) To establish the goals of such partnerships necessary 
        for trauma teams led by traumatologists to maintain professional 
        competency in trauma care.
            (3) To establish metrics for measuring the performance of 
        such partnerships in achieving such goals.
            (4) To develop methods of data collection and analysis for 
        carrying out paragraph (3).
            (5) To communicate and coordinate lessons learned from such 
        partnerships with the Joint Trauma System established under 
        section 707.
            (6) To develop standardized combat casualty care instruction 
        for all members of the Armed Forces, including the use of 
        standardized trauma training platforms.
            (7) To develop a comprehensive trauma care registry to 
        compile relevant data from point of injury through 
        rehabilitation of members of the Armed Forces.
            (8) To develop quality of care outcome measures for combat 
        casualty care.
            (9) To direct the conduct of research on the leading causes 
        of morbidity and mortality of members of the Armed Forces in 
        combat.

    (c) Partnerships.--
            (1) In general.--The Secretary may enter into partnerships 
        with civilian academic medical centers and large metropolitan 
        teaching hospitals that have level I civilian trauma

[[Page 130 STAT. 2210]]

        centers to provide integrated combat trauma teams, including 
        forward surgical teams, with maximum exposure to a high volume 
        of patients with critical injuries.
            (2) Trauma teams.--Under the partnerships entered into with 
        civilian academic medical centers and large metropolitan 
        teaching hospitals under paragraph (1), trauma teams of the 
        Armed Forces led by traumatologists of the Armed Forces shall 
        embed within the trauma centers of the medical centers and 
        hospitals on an enduring basis.
            (3) Selection.--The Secretary shall select civilian academic 
        medical centers and large metropolitan teaching hospitals to 
        enter into partnerships under paragraph (1) based on patient 
        volume, acuity, and other factors the Secretary determines 
        necessary to ensure that the traumatologists of the Armed Forces 
        and the associated clinical support teams have adequate and 
        continuous exposure to critically injured patients.
            (4) Consideration.--In entering into partnerships under 
        paragraph (1), the Secretary may consider the experiences and 
        lessons learned by the military departments that have entered 
        into memoranda of understanding with civilian medical centers 
        for trauma care.

    (d) Personnel Management Plan.--
            (1) Plan.--The Secretary shall establish a personnel 
        management plan for the following wartime medical specialties:
                    (A) Emergency medical services and prehospital care.
                    (B) Trauma surgery.
                    (C) Critical care.
                    (D) Anesthesiology.
                    (E) Emergency medicine.
                    (F) Other wartime medical specialties the Secretary 
                determines appropriate for purposes of the plan.
            (2) Elements.--The elements of the plan established under 
        paragraph (1) shall include, at a minimum, the following:
                    (A) An accession plan for the number of qualified 
                medical personnel to maintain wartime medical 
                specialties on an annual basis in order to maintain the 
                required number of trauma teams as determined by the 
                Secretary.
                    (B) The number of positions required in each such 
                medical specialty.
                    (C) Crucial organizational and operational 
                assignments for personnel in each such medical 
                specialty.
                    (D) Career pathways for personnel in each such 
                medical specialty.
            (3) Implementation.--The Secretaries of the military 
        departments shall carry out the plan established under paragraph 
        (1).

    (e) Implementation Plan.--Not later than July 1, 2017, the Secretary 
of Defense shall submit to the Committees on Armed Services of the House 
of Representatives and the Senate an implementation plan for 
establishing the Joint Trauma Education and Training Directorate under 
subsection (a), entering into partnerships under subsection (c), and 
establishing the plan under subsection (d).
    (f) Level I Civilian Trauma Center Defined.--In this section, the 
term ``level I civilian trauma center'' means a comprehensive regional 
resource that is a tertiary care facility central to the

[[Page 130 STAT. 2211]]

trauma system and is capable of providing total care for every aspect of 
injury from prevention through rehabilitation.
SEC. 709. <<NOTE: 10 USC 1071 note.>>  STANDARDIZED SYSTEM FOR 
                        SCHEDULING MEDICAL APPOINTMENTS AT 
                        MILITARY TREATMENT FACILITIES.

    (a) Standardized System.--
            (1) In general.--Not later than January 1, 2018, the 
        Secretary of Defense shall implement a system for scheduling 
        medical appointments at military treatment facilities that is 
        standardized throughout the military health system to enable 
        timely access to care for covered beneficiaries.
            (2) Lack of variance.--The system implemented under 
        paragraph (1) shall ensure that the appointment scheduling 
        processes and procedures used within the military health system 
        do not vary among military treatment facilities.

    (b) Sole System.--Upon implementation of the system under subsection 
(a), no military treatment facility may use an appointment scheduling 
process other than such system.
    (c) Scheduling of Appointments.--
            (1) In general.--Under the system implemented under 
        subsection (a), each military treatment facility shall use a 
        centralized appointment scheduling capability for covered 
        beneficiaries that includes the ability to schedule appointments 
        manually via telephone as described in paragraph (2) or 
        automatically via a device that is connected to the Internet 
        through an online scheduling system described in paragraph (3).
            (2) Telephone appointment process.--
                    (A) In general.--In the case of a covered 
                beneficiary who contacts a military treatment facility 
                via telephone to schedule an appointment under the 
                system implemented under subsection (a), the Secretary 
                shall implement standard processes to ensure that the 
                needs of the covered beneficiary are met during the 
                first such telephone call.
                    (B) Matters included.--The standard processes 
                implemented under subparagraph (A) shall include the 
                following:
                          (i) The ability of a covered beneficiary, 
                      during the telephone call to schedule an 
                      appointment, to also schedule wellness visits or 
                      follow-up appointments during the 180-day period 
                      beginning on the date of the request for the visit 
                      or appointment.
                          (ii) The ability of a covered beneficiary to 
                      indicate the process through which the covered 
                      beneficiary prefers to be reminded of future 
                      appointments, which may include reminder telephone 
                      calls, emails, or cellular text messages to the 
                      covered beneficiary at specified intervals prior 
                      to appointments.
            (3) Online system.--
                    (A) In general.--The Secretary shall implement an 
                online scheduling system that is available 24 hours per 
                day, seven days per week, for purposes of scheduling 
                appointments under the system implemented under 
                subsection (a).
                    (B) Capabilities of online system.--The online 
                scheduling system implemented under subparagraph (A) 
                shall have the following capabilities:

[[Page 130 STAT. 2212]]

                          (i) An ability to send automated email and 
                      text message reminders, including repeat 
                      reminders, to patients regarding upcoming 
                      appointments.
                          (ii) An ability to store appointment records 
                      to ensure rapid access by medical personnel to 
                      appointment data.

    (d) Standards for Productivity of Health Care Providers.--
            (1) In general.--The Secretary shall implement standards for 
        the productivity of health care providers at military treatment 
        facilities.
            (2) Matters considered.--In developing standards under 
        paragraph (1), the Secretary shall consider--
                    (A) civilian benchmarks for measuring the 
                productivity of health care providers;
                    (B) the optimal number of medical appointments for 
                each health care provider that would be required, as 
                determined by the Secretary, to maintain access of 
                covered beneficiaries to health care from the 
                Department; and
                    (C) the readiness requirements of the Armed Forces.

    (e) Plan.--
            (1) In general.--Not later than January 1, 2017, the 
        Secretary shall submit to the Committees on Armed Services of 
        the Senate and the House of Representatives a comprehensive plan 
        to implement the system required under subsection (a).
            (2) Elements.--The plan required under paragraph (1) shall 
        include the following:
                    (A) A description of the manual appointment process 
                to be used at military treatment facilities under the 
                system required under subsection (a).
                    (B) A description of the automated appointment 
                process to be used at military treatment facilities 
                under such system.
                    (C) A timeline for the full implementation of such 
                system throughout the military health system.

    (f) Briefing.--Not later than February 1, 2018, the Secretary shall 
brief the Committees on Armed Services of the Senate and the House of 
Representatives on the implementation of the system required under 
subsection (a) and the standards for the productivity of health care 
providers required under subsection (d).
    (g) Report on Missed Appointments.--
            (1) In general.--Not later than March 1 each year, the 
        Secretary of Defense shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a report 
        on the total number of medical appointments at military 
        treatment facilities for which a covered beneficiary failed to 
        appear without prior notification during the one-year period 
        preceding the submittal of the report.
            (2) Elements.--Each report under paragraph (1) shall include 
        for each military treatment facility the following:
                    (A) An identification of the top five reasons for a 
                covered beneficiary missing an appointment.
                    (B) A comparison of the number of missed 
                appointments for specialty care versus primary care.
                    (C) An estimate of the cost to the Department of 
                Defense of missed appointments.

[[Page 130 STAT. 2213]]

                    (D) An assessment of strategies to reduce the number 
                of missed appointments.

    (h) Covered Beneficiary Defined.--In this section, the term 
``covered beneficiary'' has the meaning given that term in section 1072 
of title 10, United States Code.

                 Subtitle B--Other Health Care Benefits

SEC. 711. EXTENDED TRICARE PROGRAM COVERAGE FOR CERTAIN MEMBERS OF 
                        THE NATIONAL GUARD AND DEPENDENTS DURING 
                        CERTAIN DISASTER RESPONSE DUTY.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1076e the following new section:
``Sec. 1076f. <<NOTE: 10 USC 1076f.>>  TRICARE program: extension 
                    of coverage for certain members of the 
                    National Guard and dependents during certain 
                    disaster response duty

    ``(a) Extended Coverage.--During a period in which a member of the 
National Guard is performing disaster response duty, the member may be 
treated as being on active duty for a period of more than 30 days for 
purposes of the eligibility of the member and dependents of the member 
for health care benefits under the TRICARE program if such period 
immediately follows a period in which the member served on full-time 
National Guard duty under section 502(f) of title 32, including pursuant 
to chapter 9 of such title, unless the Governor of the State (or, with 
respect to the District of Columbia, the mayor of the District of 
Columbia) determines that such extended eligibility is not in the best 
interest of the member or the State.
    ``(b) Contribution by State.--(1) The Secretary shall charge a State 
for the costs of providing coverage under the TRICARE program to members 
of the National Guard of the State and the dependents of the members 
pursuant to subsection (a). Such charges shall be paid from the funds of 
the State or from any other non-Federal funds.
    ``(2) Any amounts received by the Secretary under paragraph (1) 
shall be credited to the appropriation available for the Defense Health 
Program Account under section 1100 of this title, shall be merged with 
sums in such Account that are available for the fiscal year in which 
collected, and shall be available under subsection (b) of such section, 
including to carry out subsection (a) of this section.
    ``(c) Definitions.--In this section:
            ``(1) The term `disaster response duty' means duty performed 
        by a member of the National Guard in State status pursuant to an 
        emergency declaration by the Governor of the State (or, with 
        respect to the District of Columbia, the mayor of the District 
        of Columbia) in response to a disaster or in preparation for an 
        imminent disaster.
            ``(2) The term `State' means each of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and any 
        territory or possession of the United States.''.

[[Page 130 STAT. 2214]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter <<NOTE: 10 USC 1071 prec.>> is amended by inserting after 
the item relating to section 1076e the following new item:

``1076f. TRICARE program: extension of coverage for certain members of 
           the National Guard and dependents during certain disaster 
           response duty.''.

SEC. 712. CONTINUITY OF HEALTH CARE COVERAGE FOR RESERVE 
                        COMPONENTS.

    (a) Study.--
            (1) In general.--The Secretary of Defense shall conduct a 
        study of options for providing health care coverage that 
        improves the continuity of health care provided to current and 
        former members of the Selected Reserve of the Ready Reserve who 
        are not--
                    (A) serving on active duty;
                    (B) eligible for the Transitional Assistance 
                Management Program under section 1145 of title 10, 
                United States Code; or
                    (C) eligible for the Federal Employees Health 
                Benefit Program.
            (2) Elements.--The study under paragraph (1) shall address 
        the following:
                    (A) Whether to allow current and former members of 
                the Selected Reserve to participate in the Federal 
                Employees Health Benefit Program.
                    (B) Whether to pay a stipend to current and former 
                members to continue coverage in a health plan obtained 
                by the member.
                    (C) Whether to allow current and former members to 
                participate in the TRICARE program under section 1076d 
                of title 10, United States Code.
                    (D) Whether to amend section 1076f of title 10, 
                United States Code, as added by section 711, to require 
                the extension of TRICARE program coverage for members of 
                the National Guard assigned to Homeland Response Force 
                Units mobilized for a State emergency pursuant to 
                chapter 9 of title 32, United States Code.
                     (E) The findings and recommendations under section 
                748.
                    (F) Any other options for providing health care 
                coverage to current and former members of the Selected 
                Reserve the Secretary considers appropriate.
            (3) Consultation.--In carrying out the study under paragraph 
        (1), the Secretary shall consult with, and obtain the opinions 
        of, current and former members of the Selected Reserve, 
        including the leadership of the Selected Reserve.
            (4) Submission.--
                    (A) Report.--Not later than 180 days after the date 
                of the enactment of this Act, the Secretary shall submit 
                to the congressional defense committees a report on the 
                study under paragraph (1).
                    (B) Matters included.--The report under subparagraph 
                (A) shall include the following:
                          (i) A description of the health care coverage 
                      options addressed by the Secretary under paragraph 
                      (2).

[[Page 130 STAT. 2215]]

                          (ii) Identification of such health care 
                      coverage option that the Secretary recommends as 
                      the best option.
                          (iii) The justifications for such recommended 
                      best option.
                          (iv) The number and proportion of the current 
                      and former members of the Selected Reserve 
                      projected to participate in such recommended best 
                      option.
                          (v) A determination of the appropriate cost 
                      sharing for such recommended best option with 
                      respect to the percentage contribution as a 
                      monthly premium for current members of the 
                      Selected Reserve.
                          (vi) An estimate of the cost of implementing 
                      such recommended best option.
                          (vii) Any legislative language required to 
                      implement such recommended best option.

    (b) <<NOTE: 10 USC 1076d note.>>  Pilot Program.--
            (1) Authorization.--The Secretary of Defense and the 
        Director may jointly carry out a pilot program, at the election 
        of the Secretary, under which the Director provides commercial 
        health insurance coverage to eligible reserve component members 
        who enroll in a health benefits plan under paragraph (4) as an 
        individual, for self plus one coverage, or for self and family 
        coverage.
            (2) Elements.--The pilot program shall--
                    (A) provide for enrollment by eligible reserve 
                component members, at the election of the member, in a 
                health benefits plan under paragraph (4) during an open 
                enrollment period established by the Director for 
                purposes of this subsection;
                    (B) include a variety of national and regional 
                health benefits plans that--
                          (i) meet the requirements of this subsection;
                          (ii) are broadly representative of the health 
                      benefits plans available in the commercial market; 
                      and
                          (iii) do not contain unnecessary restrictions, 
                      as determined by the Director; and
                    (C) offer a sufficient number of health benefits 
                plans in order to provide eligible reserve component 
                beneficiaries with an ample choice of health benefits 
                plans, as determined by the Director.
            (3) Duration.--If the Secretary elects to carry out the 
        pilot program, the Secretary and the Director shall carry out 
        the pilot program for not less than five years.
            (4) Health benefits plans.--
                    (A) In general.--In providing health insurance 
                coverage under the pilot program, the Director shall 
                contract with qualified carriers for a variety of health 
                benefits plans.
                    (B) Description of plans.--Health benefits plans 
                contracted for under this subsection--
                          (i) may vary by type of plan design, covered 
                      benefits, geography, and price;
                          (ii) shall include maximum limitations on out-
                      of-pocket expenses paid by an eligible reserve 
                      component beneficiary for the health care 
                      provided; and
                          (iii) may not exclude an eligible reserve 
                      component member who chooses to enroll.

[[Page 130 STAT. 2216]]

                    (C) Quality of plans.--The Director shall ensure 
                that each health benefits plan offered under this 
                subsection offers a high degree of quality, as 
                determined by criteria that include--
                          (i) access to an ample number of medical 
                      providers, as determined by the Director;
                          (ii) adherence to industry-accepted quality 
                      measurements, as determined by the Director;
                          (iii) access to benefits described in 
                      paragraph (5), including ease of referral for 
                      health care services; and
                          (iv) inclusion in the services covered by the 
                      plan of advancements in medical treatments and 
                      technology as soon as practicable in accordance 
                      with generally accepted standards of medicine.
            (5) Benefits.--A health benefits plan offered by the 
        Director under this subsection shall include, at a minimum, the 
        following benefits:
                    (A) The health care benefits provided under chapter 
                55 of title 10, United States Code, excluding 
                pharmaceutical, dental, and extended health care option 
                benefits.
                    (B) Such other benefits as the Director determines 
                appropriate.
            (6) Care at facilities of uniformed services.--
                    (A) In general.--If an eligible reserve component 
                beneficiary receives benefits described in paragraph (5) 
                at a facility of the uniformed services, the health 
                benefits plan under which the beneficiary is covered 
                shall be treated as a third-party payer under section 
                1095 of title 10, United States Code, and shall pay 
                charges for such benefits as determined by the 
                Secretary.
                    (B) Military medical treatment facilities.--The 
                Secretary, in consultation with the Director--
                          (i) may contract with qualified carriers with 
                      which the Director has contracted under paragraph 
                      (4) to provide health insurance coverage for 
                      health care services provided at military 
                      treatment facilities under this subsection; and
                          (ii) may receive payments under section 1095 
                      of title 10, United States Code, from qualified 
                      carriers for health care services provided at 
                      military medical treatment facilities under this 
                      subsection.
            (7) Special rule relating to active duty period.--
                    (A) In general.--An eligible reserve component 
                member may not receive benefits under a health benefits 
                plan under this subsection during any period in which 
                the member is serving on active duty for more than 30 
                days.
                    (B) Treatment of dependents.--Subparagraph (A) does 
                not affect the coverage under a health benefits plan of 
                any dependent of an eligible reserve component member.
            (8) Eligibility for federal employees health benefits 
        program.--An individual is not eligible to enroll in or be 
        covered under a health benefits plan under this subsection if 
        the individual is eligible to enroll in a health benefits plan 
        under the Federal Employees Health Benefits Program.
            (9) Cost sharing.--
                    (A) Responsibility for payment.--

[[Page 130 STAT. 2217]]

                          (i) In general.--Except as provided in clause 
                      (ii), an eligible reserve component member shall 
                      pay an annual premium amount calculated under 
                      subparagraph (B) for coverage under a health 
                      benefits plan under this subsection and additional 
                      amounts described in subparagraph (C) for health 
                      care services in connection with such coverage.
                          (ii) Active duty period.--
                                    (I) In general.--During any period 
                                in which an eligible reserve component 
                                member is serving on active duty for 
                                more than 30 days, the eligible reserve 
                                component member is not responsible for 
                                paying any premium amount under 
                                subparagraph (B) or additional amounts 
                                under subparagraph (C).
                                    (II) Coverage of dependents.--With 
                                respect to a dependent of an eligible 
                                reserve component member that is covered 
                                under a health benefits plan under this 
                                subsection, during any period described 
                                in subclause (I) with respect to the 
                                member, the Secretary shall, on behalf 
                                of the dependent, pay 100 percent of the 
                                total annual amount of a premium for 
                                coverage of the dependent under the plan 
                                and such cost-sharing amounts as may be 
                                applicable under the plan.
                    (B) Premium amount.--
                          (i) In general.--The annual premium calculated 
                      under this subparagraph is an amount equal to 28 
                      percent of the total annual amount of a premium 
                      under the health benefits plan selected.
                          (ii) Types of coverage.--The premium amounts 
                      calculated under this subparagraph shall include 
                      separate calculations for--
                                    (I) coverage as an individual;
                                    (II) self plus one coverage; and
                                    (III) self and family coverage.
                    (C) Additional amounts.--The additional amounts 
                described in this subparagraph with respect to an 
                eligible reserve component member are such cost-sharing 
                amounts as may be applicable under the health benefits 
                plan under which the member is covered.
            (10) Contracting.--
                    (A) In general.--In contracting for health benefits 
                plans under paragraph (4), the Director may contract 
                with qualified carriers in a manner similar to the 
                manner in which the Director contracts with carriers 
                under section 8902 of title 5, United States Code, 
                including that--
                          (i) a contract under this subsection shall be 
                      for a uniform term of not less than one year, but 
                      may be made automatically renewable from term to 
                      term in the absence of notice of termination by 
                      either party;
                          (ii) a contract under this subsection shall 
                      contain a detailed statement of benefits offered 
                      and shall include such maximums, limitations, 
                      exclusions, and other definitions of benefits 
                      determined by the Director in accordance with 
                      paragraph (5);
                          (iii) a contract under this subsection shall 
                      ensure that an eligible reserve component member 
                      who is

[[Page 130 STAT. 2218]]

                      eligible to enroll in a health benefits plan 
                      pursuant to such contract is able to enroll in 
                      such plan; and
                          (iv) the terms of a contract under this 
                      subsection relating to the nature, provision, or 
                      extent of coverage or benefits (including payments 
                      with respect to benefits) shall supersede and 
                      preempt any conflicting State or local law.
                    (B) Evaluation of financial solvency.--The Director 
                shall perform a thorough evaluation of the financial 
                solvency of an insurance carrier before entering into a 
                contract with the insurance carrier under subparagraph 
                (A).
            (11) Recommendations and data.--
                    (A) In general.--The Secretary of Defense, in 
                consultation with the Secretary of Homeland Security, 
                shall provide recommendations and data to the Director 
                with respect to--
                          (i) matters involving military medical 
                      treatment facilities;
                          (ii) matters unique to eligible reserve 
                      component members and dependents of such members; 
                      and
                          (iii) such other strategic guidance necessary 
                      for the Director to administer this subsection as 
                      the Secretary of Defense, in consultation with the 
                      Secretary of Homeland Security, considers 
                      appropriate.
                    (B) Limitation on implementation.--The Director 
                shall not implement any recommendation provided by the 
                Secretary of Defense under subparagraph (A) if the 
                Director determines that the implementation of the 
                recommendation would result in eligible reserve 
                components beneficiaries receiving less generous health 
                benefits under this subsection than the health benefits 
                commonly available to individuals under the Federal 
                Employees Health Benefits Program during the same 
                period.
            (12) Transmission of information.--On an annual basis during 
        each year in which the pilot program is carried out, the 
        Director shall provide the Secretary with information on the use 
        of health care benefits under the pilot program, including--
                    (A) the number of eligible reserve component 
                beneficiaries participating in the pilot program, listed 
                by the health benefits plan under which the beneficiary 
                is covered;
                    (B) the number of health benefits plans offered 
                under the pilot program and a description of each such 
                plan; and
                    (C) the costs of the health care provided under the 
                plans.
            (13) Funding.--
                    (A) In general.--The Secretary of Defense and the 
                Director shall jointly establish an appropriate 
                mechanism to fund the pilot program.
                    (B) Availability of amounts.--Amounts shall be made 
                available to the Director pursuant to the mechanism 
                established under subparagraph (A), without fiscal year 
                limitation--
                          (i) for payments to health benefits plans 
                      under this subsection; and

[[Page 130 STAT. 2219]]

                          (ii) to pay the costs of administering this 
                      subsection.
            (14) Reports.--
                    (A) Initial reports.--Not later than one year after 
                the date on which the Secretary establishes the pilot 
                program, and annually thereafter for the following three 
                years, the Secretary shall submit to the Committees on 
                Armed Services of the Senate and the House of 
                Representatives a report on the pilot program.
                    (B) Matters included.--The report under subparagraph 
                (A) shall include, with respect to the year covered by 
                the report, the following:
                          (i) The number of eligible reserve component 
                      beneficiaries participating in the pilot program, 
                      listed by the health benefits plan under which the 
                      beneficiary is covered.
                          (ii) The number of health benefits plans 
                      offered under the pilot program.
                          (iii) The cost of the pilot program to the 
                      Department of Defense.
                          (iv) The estimated cost savings, if any, to 
                      the Department of Defense.
                          (v) The average cost to the eligible reserve 
                      component beneficiary.
                          (vi) The effect of the pilot program on the 
                      medical readiness of the members of the reserve 
                      components.
                          (vii) The effect of the pilot program on 
                      access to health care for members of the reserve 
                      components.
                    (C) Final report.--Not later than 180 days before 
                the date on which the pilot program will terminate 
                pursuant to paragraph (3), the Secretary shall submit to 
                the Committees on Armed Services of the Senate and the 
                House of Representatives a report on the pilot program 
                that includes--
                          (i) the matters specified under subparagraph 
                      (B); and
                          (ii) the recommendation of the Secretary 
                      regarding whether to make the pilot program 
                      permanent or to terminate the pilot program.

    (c) Definitions.--In this section:
            (1) The term ``Director'' means the Director of the Office 
        of Personnel Management.
            (2) The term ``eligible reserve component beneficiary'' 
        means an eligible reserve component member enrolled in, or a 
        dependent of such a member described in subparagraph (A), (D), 
        or (I) of section 1072(2) of title 10, United States Code, 
        covered under, a health benefits plan under subsection (b).
            (3) The term ``eligible reserve component member'' means a 
        member of the Selected Reserve of the Ready Reserve of an Armed 
        Force.
            (4) The term ``extended health care option'' means the 
        program of extended benefits under subsections (d) and (e) of 
        section 1079 of title 10, United States Code.
            (5) The term ``Federal Employees Health Benefits Program'' 
        means the health insurance program under chapter 89 of title 5, 
        United States Code.

[[Page 130 STAT. 2220]]

            (6) The term ``qualified carrier'' means an insurance 
        carrier that is licensed to issue group health insurance in any 
        State, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, Guam, 
        and any territory or possession of the United States.
SEC. 713. PROVISION OF HEARING AIDS TO DEPENDENTS OF RETIRED 
                        MEMBERS.

    Section 1077 of title 10, United States Code, is amended--
            (1) in subsection (a)(16), by striking ``A hearing aid'' and 
        inserting ``Except as provided by subsection (g), a hearing 
        aid''; and
            (2) by adding at the end the following new subsection:

    ``(g) In addition to the authority to provide a hearing aid under 
subsection (a)(16), hearing aids may be sold under this section to 
dependents of former members of the uniformed services at cost to the 
United States.''.
SEC. 714. COVERAGE OF MEDICALLY NECESSARY FOOD AND VITAMINS FOR 
                        CERTAIN CONDITIONS UNDER THE TRICARE 
                        PROGRAM.

    (a) In General.--Section 1077 of title 10, United States Code, as 
amended by section 713, is further amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by inserting before the period 
                at the end the following: ``, including, in accordance 
                with subsection (g), medically necessary vitamins''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(18) In accordance with subsection (g), medically 
        necessary food and the medical equipment and supplies necessary 
        to administer such food (other than durable medical equipment 
        and supplies).''; and
            (2) by adding at the end the following new subsection:

    ``(h)(1) Vitamins that may be provided under subsection (a)(3) are 
vitamins used for the management of a covered disease or condition 
pursuant to the prescription, order, or recommendation (as applicable) 
of a physician or other health care professional qualified to make such 
prescription, order, or recommendation.
    ``(2) Medically necessary food that may be provided under subsection 
(a)(18)--
            ``(A) is food, including a low protein modified food product 
        or an amino acid preparation product, that is--
                    ``(i) furnished pursuant to the prescription, order, 
                or recommendation (as applicable) of a physician or 
                other health care professional qualified to make such 
                prescription, order, or recommendation, for the dietary 
                management of a covered disease or condition;
                    ``(ii) a specially formulated and processed product 
                (as opposed to a naturally occurring foodstuff used in 
                its natural state) for the partial or exclusive feeding 
                of an individual by means of oral intake or enteral 
                feeding by tube;
                    ``(iii) intended for the dietary management of an 
                individual who, because of therapeutic or chronic 
                medical needs, has limited or impaired capacity to 
                ingest, digest, absorb, or metabolize ordinary 
                foodstuffs or certain nutrients, or who has other 
                special medically determined nutrient requirements, the 
                dietary management of which

[[Page 130 STAT. 2221]]

                cannot be achieved by the modification of the normal 
                diet alone;
                    ``(iv) intended to be used under medical 
                supervision, which may include in a home setting; and
                    ``(v) intended only for an individual receiving 
                active and ongoing medical supervision under which the 
                individual requires medical care on a recurring basis 
                for, among other things, instructions on the use of the 
                food; and
            ``(B) may not include--
                    ``(i) food taken as part of an overall diet designed 
                to reduce the risk of a disease or medical condition or 
                as weight-loss products, even if the food is recommended 
                by a physician or other health care professional;
                    ``(ii) food marketed as gluten-free for the 
                management of celiac disease or non-celiac gluten 
                sensitivity;
                    ``(iii) food marketed for the management of 
                diabetes; or
                    ``(iv) such other products as the Secretary 
                determines appropriate.

    ``(3) In this subsection, the term `covered disease or condition' 
means--
            ``(A) inborn errors of metabolism;
            ``(B) medical conditions of malabsorption;
            ``(C) pathologies of the alimentary tract or the 
        gastrointestinal tract;
            ``(D) a neurological or physiological condition; and
            ``(E) such other diseases or conditions the Secretary 
        determines appropriate.''.

    (b) <<NOTE: 10 USC 1077 note.>>  Effective Date.--The amendments 
made by subsection (a) shall apply to health care provided under chapter 
55 of such title on or after the date that is one year after the date of 
the enactment of this Act.
SEC. 715. ELIGIBILITY OF CERTAIN BENEFICIARIES UNDER THE TRICARE 
                        PROGRAM FOR PARTICIPATION IN THE FEDERAL 
                        EMPLOYEES DENTAL AND VISION INSURANCE 
                        PROGRAM.

    (a) In General.--
            (1) Dental benefits.--Section 8951 of title 5, United States 
        Code, is amended--
                    (A) in paragraph (3), by striking ``paragraph (1) or 
                (2)'' and inserting ``paragraph (1), (2), or (8)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(8) The term `covered TRICARE-eligible individual' means 
        an individual entitled to dental care under chapter 55 of title 
        10, pursuant to section 1076c of such title, who the Secretary 
        of Defense determines should be an eligible individual for 
        purposes of this chapter.''.
            (2) Vision benefits.--Section 8981 of title 5, United States 
        Code, is amended--
                    (A) in paragraph (3), by striking ``paragraph (1) or 
                (2)'' and inserting ``paragraph (1), (2), or (8)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(8)(A) The term `covered TRICARE-eligible individual'--
                    ``(i) means an individual entitled to medical care 
                under chapter 55 of title 10, pursuant to section 1076d, 
                1076e, 1079(a), 1086(c), or 1086(d) of such title, who 
                the Secretary of Defense determines in accordance with 
                an agreement

[[Page 130 STAT. 2222]]

                entered into under subparagraph (B) should be an 
                eligible individual for purposes of this chapter; and
                    ``(ii) does not include an individual covered under 
                section 1110b of title 10.
            ``(B) The Secretary of Defense shall enter into an agreement 
        with the Director of the Office relating to classes of 
        individuals described in subparagraph (A)(i) who should be 
        eligible individuals for purposes of this chapter.''.

    (b) Conforming Amendments.--
            (1) Dental benefits.--Section 8958(c) of title 5, United 
        States Code, is amended--
                    (A) in paragraph (1), by striking ``or'' at the end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) in the case of a covered TRICARE-eligible individual 
        who receives pay from the Federal Government or an annuity from 
        the Federal Government due to the death of a member of the 
        uniformed services (as defined in section 101 of title 10), and 
        is not a former spouse of a member of the uniformed services, be 
        withheld from--
                    ``(A) the pay (including retired pay) of such 
                individual; or
                    ``(B) the annuity paid to such individual; or
            ``(4) in the case of a covered TRICARE-eligible individual 
        who is not described in paragraph (3), be billed to such 
        individual directly.''.
            (2) Vision benefits.--Section 8988(c) of title 5, United 
        States Code, is amended--
                    (A) in paragraph (1), by striking ``or'' at the end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) in the case of a covered TRICARE-eligible individual 
        who receives pay from the Federal Government or an annuity from 
        the Federal Government due to the death of a member of the 
        uniformed services (as defined in section 101 of title 10), and 
        is not a former spouse of a member of the uniformed services, be 
        withheld from--
                    ``(A) the pay (including retired pay) of such 
                individual; or
                    ``(B) the annuity paid to such individual; or
            ``(4) in the case of a covered TRICARE-eligible individual 
        who is not described in paragraph (3), be billed to such 
        individual directly.''.
            (3) Plan for dental insurance for certain retirees, 
        surviving spouses, and other dependents.--Subsection (a) of 
        section 1076c of title 10, United States Code, is amended to 
        read as follows:

    ``(a) Requirement for Plan.--(1) The Secretary of Defense shall 
establish a dental insurance plan for retirees of the uniformed 
services, certain unremarried surviving spouses, and dependents in 
accordance with this section.
    ``(2) The Secretary may satisfy the requirement under paragraph (1) 
by entering into an agreement with the Director of the Office of 
Personnel Management to allow persons described in subsection (b) to 
enroll in an insurance plan under chapter 89A of

[[Page 130 STAT. 2223]]

title 5 that provides benefits similar to those benefits required to be 
provided under subsection (d).''.
    (c) <<NOTE: 5 USC 8951 note.>>  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. <<NOTE: 10 USC 1071 note.>>  EVALUATION AND TREATMENT OF 
                        VETERANS AND CIVILIANS AT MILITARY 
                        TREATMENT FACILITIES.

    (a) In General.--The Secretary of Defense shall authorize a veteran 
(in consultation with the Secretary of Veterans Affairs) or civilian to 
be evaluated and treated at a military treatment facility if the 
Secretary of Defense determines that--

[[Page 130 STAT. 2224]]

            (1) the evaluation and treatment of the individual is 
        necessary to attain the relevant mix and volume of medical 
        casework required to maintain medical readiness skills and 
        competencies of health care providers at the facility;
            (2) the health care providers at the facility have the 
        competencies, skills, and abilities required to treat the 
        individual; and
            (3) the facility has available space, equipment, and 
        materials to treat the individual.

    (b) Priority of Covered Beneficiaries.--The evaluation and treatment 
of covered beneficiaries at military treatment facilities shall be 
prioritized ahead of the evaluation and treatment of veterans and 
civilians at such facilities under subsection (a).
    (c) Reimbursement for Treatment.--
            (1) Civilians.--A military treatment facility that evaluates 
        or treats an individual (other than an individual described in 
        paragraph (2)) under subsection (a) shall bill the individual 
        and accept reimbursement from the individual or a third-party 
        payer (as that term is defined in section 1095(h) of title 10, 
        United States Code) on behalf of such individual for the costs 
        of any health care services provided to the individual under 
        such subsection.
            (2) Veterans.--The Secretary of Defense shall enter into a 
        memorandum of agreement with the Secretary of Veterans Affairs 
        under which the Secretary of Veterans Affairs will pay a 
        military treatment facility using a prospective payment 
        methodology (including interagency transfers of funds or 
        obligational authority and similar transactions) for the costs 
        of any health care services provided at the facility under 
        subsection (a) to individuals eligible for such health care 
        services from the Department of Veterans Affairs.
            (3) Use of amounts.--The Secretary of Defense shall make 
        available to a military treatment facility any amounts collected 
        by such facility under paragraph (1) or (2) for health care 
        services provided to an individual under subsection (a).

    (d) Covered Beneficiary Defined.--In this section, the term 
``covered beneficiary'' has the meaning given that term in section 1072 
of title 10, United States Code.
SEC. 718. <<NOTE: 10 USC 1071 note.>>  ENHANCEMENT OF USE OF 
                        TELEHEALTH SERVICES IN MILITARY HEALTH 
                        SYSTEM.

    (a) Incorporation of Telehealth.--
            (1) In general.--Not later than 18 months after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        incorporate, throughout the direct care and purchased care 
        components of the military health system, the use of telehealth 
        services, including mobile health applications--
                    (A) to improve access to primary care, urgent care, 
                behavioral health care, and specialty care;
                    (B) to perform health assessments;
                    (C) to provide diagnoses, interventions, and 
                supervision;
                    (D) to monitor individual health outcomes of covered 
                beneficiaries with chronic diseases or conditions;
                    (E) to improve communication between health care 
                providers and patients; and

[[Page 130 STAT. 2225]]

                    (F) to reduce health care costs for covered 
                beneficiaries and the Department of Defense.
            (2) Types of telehealth services.--The telehealth services 
        required to be incorporated under paragraph (1) shall include 
        those telehealth services that--
                    (A) maximize the use of secure messaging between 
                health care providers and covered beneficiaries to 
                improve the access of covered beneficiaries to health 
                care and reduce the number of visits to medical 
                facilities for health care needs;
                    (B) allow covered beneficiaries to schedule 
                appointments; and
                    (C) allow health care providers, through video 
                conference, telephone or tablet applications, or home 
                health monitoring devices--
                          (i) to assess and evaluate disease signs and 
                      symptoms;
                          (ii) to diagnose diseases;
                          (iii) to supervise treatments; and
                          (iv) to monitor health outcomes.

    (b) Coverage of Items or Services.--An item or service furnished to 
a covered beneficiary via a telecommunications system shall be covered 
under the TRICARE program to the same extent as the item or service 
would be covered if furnished in the location of the covered 
beneficiary.
    (c) Reimbursement Rates for Telehealth Services.--The Secretary 
shall develop standardized payment methods to reimburse health care 
providers for telehealth services provided to covered beneficiaries in 
the purchased care component of the TRICARE program, including by using 
reimbursement rates that incentivize the provision of telehealth 
services.
    (d) Reduction or Elimination of Copayments.--The Secretary shall 
reduce or eliminate, as the Secretary considers appropriate, copayments 
or cost shares for covered beneficiaries in connection with the receipt 
of telehealth services under the purchased care component of the TRICARE 
program.
    (e) Reports.--
            (1) Initial report.--
                    (A) In general.--Not later than 180 days after the 
                date of the enactment of this Act, the Secretary shall 
                submit to the Committees on Armed Services of the Senate 
                and the House of Representatives a report describing the 
                full range of telehealth services to be available in the 
                direct care and purchased care components of the 
                military health system and the copayments and cost 
                shares, if any, associated with those services.
                    (B) Reimbursement plan.--The report required under 
                subparagraph (A) shall include a plan to develop 
                standardized payment methods to reimburse health care 
                providers for telehealth services provided to covered 
                beneficiaries in the purchased care component of the 
                TRICARE program, as required under subsection (c).
            (2) Final report.--
                    (A) In general.--Not later than three years after 
                the date on which the Secretary begins incorporating, 
                throughout the direct care and purchased care components 
                of the military health system, the use of telehealth 
                services as

[[Page 130 STAT. 2226]]

                required under subsection (a), the Secretary shall 
                submit to the Committees on Armed Services of the Senate 
                and the House of Representatives a report describing the 
                impact made by the use of telehealth services, including 
                mobile health applications, to carry out the actions 
                specified in subparagraphs (A) through (F) of subsection 
                (a)(1).
                    (B) Elements.--The report required under 
                subparagraph (A) shall include an assessment of the 
                following:
                          (i) The satisfaction of covered beneficiaries 
                      with telehealth services furnished by the 
                      Department of Defense.
                          (ii) The satisfaction of health care providers 
                      in providing telehealth services furnished by the 
                      Department.
                          (iii) The effect of telehealth services 
                      furnished by the Department on the following:
                                    (I) The ability of covered 
                                beneficiaries to access health care 
                                services in the direct care and 
                                purchased care components of the 
                                military health system.
                                    (II) The frequency of use of 
                                telehealth services by covered 
                                beneficiaries.
                                    (III) The productivity of health 
                                care providers providing care furnished 
                                by the Department.
                                    (IV) The reduction, if any, in the 
                                use by covered beneficiaries of health 
                                care services in military treatment 
                                facilities or medical facilities in the 
                                private sector.
                                    (V) The number and types of 
                                appointments for the receipt of 
                                telehealth services furnished by the 
                                Department.
                                    (VI) The savings, if any, realized 
                                by the Department by furnishing 
                                telehealth services to covered 
                                beneficiaries.

    (f) Regulations.--
            (1) Interim final rule.--Not later than 180 days after the 
        date of the enactment of this Act, the Secretary shall prescribe 
        an interim final rule to implement this section.
            (2) Final rule.--Not later than 180 days after prescribing 
        the interim final rule under paragraph (1) and considering 
        public comments with respect to such interim final rule, the 
        Secretary shall prescribe a final rule to implement this 
        section.
            (3) Objectives.--The regulations prescribed under paragraphs 
        (1) and (2) shall accomplish the objectives set forth in 
        subsection (a) and ensure quality of care, patient safety, and 
        the integrity of the TRICARE program.

    (g) Definitions.--In this section, the terms ``covered beneficiary'' 
and ``TRICARE program'' have the meaning given those terms in section 
1072 of title 10, United States Code.
SEC. 719. <<NOTE: 10 USC 1074g note.>>  AUTHORIZATION OF 
                        REIMBURSEMENT BY DEPARTMENT OF DEFENSE TO 
                        ENTITIES CARRYING OUT STATE VACCINATION 
                        PROGRAMS FOR COSTS OF VACCINES PROVIDED TO 
                        COVERED BENEFICIARIES.

    (a) Reimbursement.--

[[Page 130 STAT. 2227]]

            (1) In general.--The Secretary of Defense may reimburse an 
        amount determined under paragraph (2) to an entity carrying out 
        a State vaccination program for the cost of vaccines provided to 
        covered beneficiaries through such program.
            (2) Amount of reimbursement.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amount determined under this paragraph with 
                respect to a State vaccination program shall be the 
                amount assessed by the entity carrying out such program 
                to purchase vaccines provided to covered beneficiaries 
                through such program.
                    (B) Limitation.--The amount determined under this 
                paragraph to provide vaccines to covered beneficiaries 
                through a State vaccination program may not exceed the 
                amount that the Department would reimburse an entity 
                under the TRICARE program for providing vaccines to the 
                number of covered beneficiaries who were involved in the 
                applicable State vaccination program.

    (b) Definitions.--In this section:
            (1) Covered beneficiary; tricare program.--The terms 
        ``covered beneficiary'' and ``TRICARE program'' have the 
        meanings given those terms in section 1072 of title 10, United 
        States Code.
            (2) State vaccination program.--The term ``State vaccination 
        program'' means a vaccination program that provides vaccinations 
        to individuals in a State and is carried out by an entity 
        (including an agency of the State) within the State.

                 Subtitle C--Health Care Administration

SEC. 721. AUTHORITY TO CONVERT MILITARY MEDICAL AND DENTAL 
                        POSITIONS TO CIVILIAN MEDICAL AND DENTAL 
                        POSITIONS.

    (a) Limited Authority for Conversion.--
            (1) Authority.--Chapter 49 of title 10, United States Code, 
        is amended by inserting after section 976 the following new 
        section:
``Sec. 977. <<NOTE: 10 USC 977.>>  Conversion of military medical 
                and dental positions to civilian medical and 
                dental positions: limitation

    ``(a) Process.--The Secretary of Defense, in collaboration with the 
Secretaries of the military departments, shall establish a process to 
define the military medical and dental personnel requirements necessary 
to meet operational medical force readiness requirements.
    ``(b) Requirements Relating to Conversion.--A military medical or 
dental position within the Department of Defense may be converted to a 
civilian medical or dental position if the Secretary determines that the 
position is not necessary to meet operational medical force readiness 
requirements, as determined pursuant to subsection (a).
    ``(c) Grade or Level Converted.--In carrying out a conversion under 
subsection (b), the Secretary of Defense--
            ``(1) shall convert the applicable military position to a 
        civilian position with a level of compensation commensurate with 
        the skills and experience necessary to carry out the duties of 
        such civilian position; and

[[Page 130 STAT. 2228]]

            ``(2) may not place any limitation on the grade or level to 
        which the military position is so converted.

    ``(d) Definitions.--In this section:
            ``(1) The term `military medical or dental position' means a 
        position for the performance of health care functions within the 
        armed forces held by a member of the armed forces.
            ``(2) The term `civilian medical or dental position' means a 
        position for the performance of health care functions within the 
        Department of Defense held by an employee of the Department or 
        of a contractor of the Department.
            ``(3) The term `conversion', with respect to a military 
        medical or dental position, means a change of the position to a 
        civilian medical or dental position, effective as of the date of 
        the manning authorization document of the military department 
        making the change (through a change in designation from military 
        to civilian in the document, the elimination of the listing of 
        the position as a military position in the document, or through 
        any other means indicating the change in the document or 
        otherwise).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 49 of such title <<NOTE: 10 USC 971 
        prec.>> 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) <<NOTE: 10 USC 977 note.>>  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. <<NOTE: 14 USC 520.>>  Prospective payment of funds 
                necessary to provide medical care

    ``(a) Prospective Payment Required.--In lieu of the reimbursement 
required under section 1085 of title 10, the Secretary of Homeland 
Security shall make a prospective payment to the Secretary of Defense of 
an amount that represents the actuarial valuation of treatment or care--

[[Page 130 STAT. 2229]]

            ``(1) that the Department of Defense shall provide to 
        members of the Coast Guard, former members of the Coast Guard, 
        and dependents of such members and former members (other than 
        former members and dependents of former members who are a 
        Medicare-eligible beneficiary or for whom the payment for 
        treatment or care is made from the Medicare-Eligible Retiree 
        Health Care Fund) at facilities under the jurisdiction of the 
        Department of Defense or a military department; and
            ``(2) for which a reimbursement would otherwise be made 
        under section 1085.

    ``(b) Amount.--The amount of the prospective payment under 
subsection (a) shall be--
            ``(1) in the case of treatment or care to be provided to 
        members of the Coast Guard and their dependents, derived from 
        amounts appropriated for the operating expenses of the Coast 
        Guard;
            ``(2) in the case of treatment or care to be provided former 
        members of the Coast Guard and their dependents, derived from 
        amounts appropriated for retired pay;
            ``(3) determined under procedures established by the 
        Secretary of Defense;
            ``(4) paid during the fiscal year in which treatment or care 
        is provided; and
            ``(5) subject to adjustment or reconciliation as the 
        Secretaries determine appropriate during or promptly after such 
        fiscal year in cases in which the prospective payment is 
        determined excessive or insufficient based on the services 
        actually provided.

    ``(c) No Prospective Payment When Service in Navy.--No prospective 
payment shall be made under this section for any period during which the 
Coast Guard operates as a service in the Navy.
    ``(d) Relationship to TRICARE.--This section shall not be construed 
to require a payment for, or the prospective payment of an amount that 
represents the value of, treatment or care provided under any TRICARE 
program.''.
    (b) Clerical Amendment.--The analysis for chapter 13 of title 14, 
United States Code, <<NOTE: 10 USC 461 prec.>> 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, <<NOTE: 10 USC 1085 note.>> are repealed.
SEC. 723. REDUCTION OF ADMINISTRATIVE REQUIREMENTS RELATING TO 
                        AUTOMATIC RENEWAL OF ENROLLMENTS IN 
                        TRICARE PRIME.

    Section 1097a(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``(1) An'' and inserting 
        ``An''; and
            (2) by striking paragraph (2).

[[Page 130 STAT. 2230]]

SEC. 724. MODIFICATION OF AUTHORITY OF UNIFORMED SERVICES 
                        UNIVERSITY OF THE HEALTH SCIENCES TO 
                        INCLUDE UNDERGRADUATE AND OTHER MEDICAL 
                        EDUCATION AND TRAINING PROGRAMS.

    (a) In General.--Section 2112(a) of title 10, United States Code, is 
amended to read as follows:
    ``(a)(1) There is established a Uniformed Services University of the 
Health Sciences (in this chapter referred to as the `University') with 
authority to grant appropriate certificates, certifications, 
undergraduate degrees, and advanced degrees.
    ``(2) The University shall be so organized as to graduate not fewer 
than 100 medical students annually.
    ``(3) The headquarters of the University shall be at a site or sites 
selected by the Secretary of Defense within 25 miles of the District of 
Columbia.''.
    (b) Administration.--Section 2113 of such title is amended--
            (1) in subsection (d)--
                    (A) in the first sentence, by striking ``located in 
                or near the District of Columbia'';
                    (B) in the third sentence, by striking ``in or near 
                the District of Columbia''; and
                    (C) by striking the fifth sentence; and
            (2) in subsection (e)(3), by inserting after ``programs'' 
        the following: ``, including certificate, certification, and 
        undergraduate degree programs,''.

    (c) Repeal of Expired Provision.--Section 2112a of such title is 
amended--
            (1) by striking subsection (b); and
            (2) in subsection (a), by striking ``(a) Closure 
        Prohibited.--''.
SEC. 725. <<NOTE: 10 USC 1074 note.>>  ADJUSTMENT OF MEDICAL 
                        SERVICES, PERSONNEL AUTHORIZED STRENGTHS, 
                        AND INFRASTRUCTURE IN MILITARY HEALTH 
                        SYSTEM TO MAINTAIN READINESS AND CORE 
                        COMPETENCIES OF HEALTH CARE PROVIDERS.

    (a) In General.--Except as provided by subsection (c), not later 
than one year after the date of the enactment of this Act, the Secretary 
of Defense shall implement measures to maintain the critical wartime 
medical readiness skills and core competencies of health care providers 
within the Armed Forces.
    (b) Measures.--The measures under subsection (a) shall include 
measures under which the Secretary ensures the following:
            (1) Medical services provided through the military health 
        system at military medical treatment facilities--
                    (A) maintain the critical wartime medical readiness 
                skills and core competencies of health care providers 
                within the Armed Forces; and
                    (B) ensure the medical readiness of the Armed 
                Forces.
            (2) The authorized strengths for military and civilian 
        personnel throughout the military health system--
                    (A) maintain the critical wartime medical readiness 
                skills and core competencies of health care providers 
                within the Armed Forces; and
                    (B) ensure the medical readiness of the Armed 
                Forces.
            (3) The infrastructure in the military health system, 
        including infrastructure of military medical treatment 
        facilities--

[[Page 130 STAT. 2231]]

                    (A) maintains the critical wartime medical readiness 
                skills and core competencies of health care providers 
                within the Armed Forces; and
                    (B) ensures the medical readiness of the Armed 
                Forces.
            (4) Any covered beneficiary who may be affected by the 
        measures implemented under subsection (a) will be able to 
        receive through the purchased care component of the TRICARE 
        program any medical services that will not be available to such 
        covered beneficiary at a military medical treatment facility by 
        reason of such measures.

    (c) Exception.--The Secretary is not required to implement measures 
under subsection (a)(1) with respect to military medical treatment 
facilities located in a foreign country if the Secretary determines that 
providing medical services in addition to the medical services described 
in such subsection is necessary to ensure that covered beneficiaries 
located in that foreign country have access to a similar level of care 
available to covered beneficiaries located in the United States.
    (d) Definitions.--In this section:
            (1) The term ``clinical and logistical capabilities'' means 
        those capabilities relating to the provision of health care that 
        are necessary to accomplish operational requirements, 
        including--
                    (A) combat casualty care;
                    (B) medical response to and treatment of injuries 
                sustained from chemical, biological, radiological, 
                nuclear, or explosive incidents;
                    (C) diagnosis and treatment of infectious diseases;
                    (D) aerospace medicine;
                    (E) undersea medicine;
                    (F) diagnosis, treatment, and rehabilitation of 
                specialized medical conditions;
                    (G) diagnosis and treatment of diseases and injuries 
                that are not related to battle; and
                    (H) humanitarian assistance.
            (2) The terms ``covered beneficiary'' and ``TRICARE 
        program'' have the meanings given those terms in section 1072 of 
        title 10, United States Code.
            (3) The term ``critical wartime medical readiness skills and 
        core competencies'' means those essential medical capabilities, 
        including clinical and logistical capabilities, that are--
                    (A) necessary to be maintained by health care 
                providers within the Armed Forces for national security 
                purposes; and
                    (B) vital to the provision of effective and timely 
                health care during contingency operations.
SEC. 726. <<NOTE: 10 USC 1071 note.>>  PROGRAM TO ELIMINATE 
                        VARIABILITY IN HEALTH OUTCOMES AND IMPROVE 
                        QUALITY OF HEALTH CARE SERVICES DELIVERED 
                        IN MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Program.--Beginning not later than January 1, 2018, the 
Secretary of Defense shall implement a program--
            (1) to establish best practices for the delivery of health 
        care services for certain diseases or conditions at military 
        medical treatment facilities, as selected by the Secretary;

[[Page 130 STAT. 2232]]

            (2) to incorporate such best practices into the daily 
        operations of military medical treatment facilities selected by 
        the Secretary for purposes of the program, with priority in 
        selection given to facilities that provide specialty care; and
            (3) to eliminate variability in health outcomes and to 
        improve the quality of health care services delivered at 
        military medical treatment facilities selected by the Secretary 
        for purposes of the program.

    (b) Use of Clinical Practice Guidelines.--In carrying out the 
program under subsection (a), the Secretary shall develop, implement, 
monitor, and update clinical practice guidelines reflecting the best 
practices established under paragraph (1) of such subsection.
    (c) Development.--In developing the clinical practice guidelines 
under subsection (b), the Secretary shall ensure that such development 
includes a baseline assessment of health care delivery and outcomes at 
military medical treatment facilities to evaluate and determine 
evidence-based best practices, within the direct care component of the 
military health system and the private sector, for treating the diseases 
or conditions selected by the Secretary under subsection (a)(1).
    (d) Implementation.--The Secretary shall implement the clinical 
practice guidelines under subsection (b) in military medical treatment 
facilities selected by the Secretary under subsection (a)(2) using means 
determined appropriate by the Secretary, including by communicating with 
the relevant health care providers of the evidence upon which the 
guidelines are based and by providing education and training on the most 
appropriate implementation of the guidelines.
    (e) Monitoring.--The Secretary shall monitor the implementation of 
the clinical practice guidelines under subsection (b) using appropriate 
means, including by monitoring the results in clinical outcomes based on 
specific metrics included as part of the guidelines.
    (f) Updating.--The Secretary shall periodically update the clinical 
practice guidelines under subsection (b) based on the results of 
monitoring conducted under subsection (e) and by continuously assessing 
evidence-based best practices within the direct care component of the 
military health system and the private sector.
    (g) Continuous Cycle.--The Secretary shall establish a continuous 
cycle of carrying out subsections (c) through (f) with respect to the 
clinical practice guidelines established under subsection (a).
SEC. 727. <<NOTE: 10 USC 1091 note.>>  ACQUISITION STRATEGY FOR 
                        HEALTH CARE PROFESSIONAL STAFFING 
                        SERVICES.

    (a) Acquisition Strategy.--
            (1) In general.--The Secretary of Defense shall develop and 
        carry out a performance-based, strategic sourcing acquisition 
        strategy with respect to entering into contracts for the 
        services of health care professional staff at military medical 
        treatment facilities located in a State.
            (2) Elements.--The acquisition strategy under paragraph (1) 
        shall include the following:
                    (A) Except as provided by subparagraph (B), a 
                requirement that all the military medical treatment 
                facilities that provide direct care use contracts 
                described under paragraph (1).

[[Page 130 STAT. 2233]]

                    (B) A process for a military medical treatment 
                facility to obtain a waiver of the requirement under 
                subparagraph (A) in order to use an acquisition strategy 
                not described in paragraph (1).
                    (C) Identification of the responsibilities of the 
                military departments and the elements of the Department 
                of Defense in carrying out such strategy.
                    (D) Projection of the demand by covered 
                beneficiaries for health care services, including with 
                respect to primary care and expanded-hours urgent care 
                services.
                    (E) Estimation of the workload gaps at military 
                medical treatment facilities for health care services, 
                including with respect to primary care and expanded-
                hours urgent care services.
                    (F) Methods to analyze, using reliable and detailed 
                data covering the entire direct care component of the 
                military health system, the amount of funds expended on 
                contracts for the services of health care professional 
                staff.
                    (G) Methods to identify opportunities to consolidate 
                requirements for such services and reduce cost.
                    (H) Methods to measure cost savings that are 
                realized by using such contracts instead of purchased 
                care.
                    (I) Metrics to determine the effectiveness of such 
                strategy.
                    (J) Metrics to evaluate the success of the strategy 
                in achieving its objectives, including metrics to assess 
                the effects of the strategy on the timeliness of 
                beneficiary access to professional health care services 
                in military medical treatment facilities.
                    (K) Such other matters as the Secretary considers 
                appropriate.

    (b) Report.--Not later than July 1, 2017, the Secretary shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives a report on the status of implementing the acquisition 
strategy under paragraph (1) of subsection (a), including how each 
element under subparagraphs (A) through (K) of paragraph (2) of such 
subsection is being carried out.
    (c) Definitions.--In this section:
            (1) The term ``covered beneficiary'' has the meaning given 
        that term in section 1072 of title 10, United States Code.
            (2) The term ``State'' means the several States and the 
        District of Columbia.

    (d) Conforming Repeal.--Section 725 of the Carl Levin and Howard P. 
``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113-291; 10 U.S.C. 1091 note) is repealed.
SEC. 728. <<NOTE: 10 USC 1071 note.>>  ADOPTION OF CORE QUALITY 
                        PERFORMANCE METRICS.

    (a) Adoption.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall adopt, 
        to the extent appropriate, the core quality performance metrics 
        agreed upon by the Core Quality Measures Collaborative for use 
        by the military health system and in contracts awarded to carry 
        out the TRICARE program.
            (2) Core measures.--The core quality performance metrics 
        described in paragraph (1) shall include the following sets:

[[Page 130 STAT. 2234]]

                    (A) Accountable care organizations, patient centered 
                medical homes, and primary care.
                    (B) Cardiology.
                    (C) Gastroenterology.
                    (D) HIV and hepatitis C.
                    (E) Medical oncology.
                    (F) Obstetrics and gynecology.
                    (G) Orthopedics.
                    (H) Such other sets of core quality performance 
                metrics released by the Core Quality Measures 
                Collaborative as the Secretary considers appropriate.

    (b) Publication.--
            (1) Online availability.--Section 1073b of title 10, United 
        States Code, is amended--
                    (A) in paragraph (1)--
                          (i) by striking ``Not later than'' and all 
                      that follows through ``2016, the Secretary'' and 
                      inserting ``The Secretary''; and
                          (ii) by adding at the end the following new 
                      sentence: ``Such data shall include the core 
                      quality performance metrics adopted by the 
                      Secretary under section 728 of the National 
                      Defense Authorization Act for Fiscal Year 2017.''; 
                      and
                    (B) in the section heading, by inserting ``and 
                publication of certain data'' after ``reports''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 55 of title 10, <<NOTE: 10 USC 1071 
        prec.>> 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) <<NOTE: 10 USC 1071 note.>>  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. <<NOTE: 10 USC 1073 note.>>  IMPROVEMENT OF HEALTH 
                        OUTCOMES AND CONTROL OF COSTS OF HEALTH 
                        CARE UNDER TRICARE PROGRAM THROUGH 
                        PROGRAMS TO INVOLVE COVERED BENEFICIARIES.

    (a) Medical Intervention Incentive Program.--
            (1) In general.--The Secretary of Defense shall establish a 
        program to incentivize covered beneficiaries to participate in 
        medical intervention programs established by the Secretary, such 
        as comprehensive disease management programs, that may include 
        lowering fees for enrollment in the TRICARE program by a certain 
        percentage or lowering copayment and cost-share amounts for 
        health care services during a particular year for covered 
        beneficiaries with chronic diseases or conditions described in 
        paragraph (2) who met participation milestones, as determined by 
        the Secretary, in the previous year in such medical intervention 
        programs.

[[Page 130 STAT. 2235]]

            (2) Chronic diseases or conditions described.--Chronic 
        diseases or conditions described in this paragraph may include 
        diabetes, chronic obstructive pulmonary disease, asthma, 
        congestive heart failure, hypertension, history of stroke, 
        coronary artery disease, mood disorders, obesity, and such other 
        diseases or conditions as the Secretary determines appropriate.

    (b) Lifestyle Intervention Incentive Program.--The Secretary shall 
establish a program to incentivize lifestyle interventions for covered 
beneficiaries, such as smoking cessation and weight reduction, that may 
include lowering fees for enrollment in the TRICARE program by a certain 
percentage or lowering copayment and cost share amounts for health care 
services during a particular year for covered beneficiaries who met 
participation milestones, as determined by the Secretary, in the 
previous year with respect to such lifestyle interventions, such as 
quitting smoking or achieving a lower body mass index by a certain 
percentage.
    (c) Healthy Lifestyle Maintenance Incentive Program.--The Secretary 
shall establish a program to incentivize the maintenance of a healthy 
lifestyle among covered beneficiaries, such as exercise and weight 
maintenance, that may include lowering fees for enrollment in the 
TRICARE program by a certain percentage or lowering copayment and cost-
share amounts for health care services during a particular year for 
covered beneficiaries who met participation milestones, as determined by 
the Secretary, in the previous year with respect to the maintenance of a 
healthy lifestyle, such as maintaining smoking cessation or maintaining 
a normal body mass index.
    (d) Report.--
            (1) In general.--Not later than January 1, 2020, the 
        Secretary shall submit to the Committees on Armed Services of 
        the Senate and the House of Representatives a report on the 
        implementation of the programs established under subsections 
        (a), (b), and (c).
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) A detailed description of the programs 
                implemented under subsections (a), (b), and (c).
                    (B) An assessment of the impact of such programs 
                on--
                          (i) improving health outcomes for covered 
                      beneficiaries; and
                          (ii) lowering per capita health care costs for 
                      the Department of Defense.

    (e) Regulations.--Not later than January 1, 2018, the Secretary 
shall prescribe an interim final rule to carry out this section.
    (f) Definitions.--In this section, the terms ``covered beneficiary'' 
and ``TRICARE program'' have the meaning given those terms in section 
1072 of title 10, United States Code.
SEC. 730. <<NOTE: 10 USC 1071 note.>>  ACCOUNTABILITY FOR THE 
                        PERFORMANCE OF THE MILITARY HEALTH SYSTEM 
                        OF CERTAIN LEADERS WITHIN THE SYSTEM.

    (a) In General.--Commencing not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, in consultation 
with the Secretaries of the military departments, shall incorporate into 
the annual performance review of each military and civilian leader in 
the military health system, as determined

[[Page 130 STAT. 2236]]

by the Secretary of Defense, measures of accountability for the 
performance of the military health system described in subsection (b).
    (b) Measures of Accountability for Performance.--The measures of 
accountability for the performance of the military health system 
incorporated into the annual performance review of an individual 
pursuant to this section shall include measures to assess performance 
and assure accountability for the following:
            (1) Quality of care.
            (2) Access of beneficiaries to care.
            (3) Improvement in health outcomes for beneficiaries.
            (4) Patient safety.
            (5) Such other matters as the Secretary of Defense, in 
        consultation with the Secretaries of the military departments, 
        considers appropriate.

    (c) Report on Implementation.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall submit 
        to the Committees on Armed Services of the Senate and the House 
        of Representatives a report on the incorporation of measures of 
        accountability for the performance of the military health system 
        into the annual performance reviews of individuals as required 
        by this section.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) A comprehensive plan for the use of measures of 
                accountability for performance in annual performance 
                reviews pursuant to this section as a means of assessing 
                and assuring accountability for the performance of the 
                military health system.
                    (B) The identification of each leadership position 
                in the military health system determined under 
                subsection (a) and a description of the specific 
                measures of accountability for performance to be 
                incorporated into the annual performance reviews of each 
                such position pursuant to this section.
SEC. 731. <<NOTE: 10 USC 1071 note.>>  ESTABLISHMENT OF ADVISORY 
                        COMMITTEES FOR MILITARY TREATMENT 
                        FACILITIES.

    (a) In General.--The Secretary of Defense shall establish, under 
such regulations as the Secretary may prescribe, an advisory committee 
for each military treatment facility.
    (b) Status of Certain Members of Advisory Committees.--A member of 
an advisory committee established under subsection (a) who is not a 
member of the Armed Forces on active duty or an employee of the Federal 
Government shall, with the approval of the commanding officer or 
director of the military treatment facility concerned, be treated as a 
volunteer under section 1588 of title 10, United States Code, in 
carrying out the duties of the member under this section.
    (c) Duties.--Each advisory committee established under subsection 
(a) for a military treatment facility shall provide to the commanding 
officer or director of such facility advice on the administration and 
activities of such facility as it relates to the experience of care for 
beneficiaries at such facility.

[[Page 130 STAT. 2237]]

                  Subtitle D--Reports and Other Matters

SEC. 741. EXTENSION OF AUTHORITY FOR JOINT DEPARTMENT OF DEFENSE-
                        DEPARTMENT OF VETERANS AFFAIRS MEDICAL 
                        FACILITY DEMONSTRATION FUND AND REPORT ON 
                        IMPLEMENTATION OF INFORMATION TECHNOLOGY 
                        CAPABILITIES.

    (a) In General.--Section 1704(e) of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 
2573), as amended by section 722 of the Carl Levin and Howard P. 
``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113-291) and section 723 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92), is further 
amended by striking ``September 30, 2017'' and inserting ``September 30, 
2018''.
    (b) Report on Implementation of Information Technology 
Capabilities.--Not later than March 30, 2017, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on plans to implement all information 
technology capabilities required by the executive agreement entered into 
under section 1701(a) of the National Defense Authorization Act for 
Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2567) that remain 
unimplemented as of the date of the report.
SEC. 742. <<NOTE: 10 USC 1092 note.>>  PILOT PROGRAM ON EXPANSION 
                        OF USE OF PHYSICIAN ASSISTANTS TO PROVIDE 
                        MENTAL HEALTH CARE TO MEMBERS OF THE ARMED 
                        FORCES.

    (a) In General.--The Secretary of Defense may conduct a pilot 
program to assess the feasibility and advisability of expanding the use 
by the Department of Defense of physician assistants specializing in 
psychiatric medicine at medical facilities of the Department of Defense 
in order to meet the increasing demand for mental health care providers 
at such facilities through the use of a psychiatry fellowship program 
for physician assistants.
    (b) Report on Pilot Program.--
            (1) In general.--If the Secretary conducts the pilot program 
        under this section, not later than 90 days after the date on 
        which the Secretary completes the conduct of the pilot program, 
        the Secretary shall submit to the Committees on Armed Services 
        of the Senate and the House of Representatives a report on the 
        pilot program.
            (2) Elements.--The report submitted under paragraph (1) 
        shall include the following:
                    (A) A description of the implementation of the pilot 
                program, including a detailed description of the 
                education and training provided under the pilot program.
                    (B) An assessment of potential cost savings, if any, 
                to the Department of Defense resulting from the pilot 
                program.
                    (C) A description of improvements, if any, to the 
                access of members of the Armed Forces to mental health 
                care resulting from the pilot program.
                    (D) A recommendation as to the feasibility and 
                advisability of extending or expanding the pilot 
                program.

[[Page 130 STAT. 2238]]

SEC. 743. <<NOTE: 10 USC 1074g note.>>  PILOT PROGRAM FOR 
                        PRESCRIPTION DRUG ACQUISITION COST PARITY 
                        IN THE TRICARE PHARMACY BENEFITS PROGRAM.

    (a) Authority to Establish Pilot Program.--The Secretary of Defense 
may conduct a pilot program to evaluate whether, in carrying out the 
TRICARE pharmacy benefits program under section 1074g of title 10, 
United States Code, extending additional discounts for prescription 
drugs filled at retail pharmacies will maintain or reduce prescription 
drug costs for the Department of Defense.
    (b) Elements of Pilot Program.--In carrying out the pilot program 
under subsection (a), the Secretary shall require that for prescription 
medications, including non-generic maintenance medications, that are 
dispensed to TRICARE beneficiaries that are not Medicare eligible, 
through any TRICARE participating retail pharmacy, including small 
business pharmacies, manufacturers shall pay rebates such that those 
medications are available to the Department at the lowest rate 
available. In addition to utilizing the authority under section 1074g(f) 
of title 10, United States Code, the Secretary shall have the authority 
to enter into a blanket purchase agreement with prescription drug 
manufacturers for supplemental discounts for prescription drugs 
dispensed in the pilot to be paid in the form of manufacturer's rebates.
    (c) Consultation.--The Secretary shall develop the pilot program in 
consultation with--
            (1) the Secretaries of the military departments;
            (2) the Chief of the Pharmacy Operations Division of the 
        Defense Health Agency; and
            (3) stakeholders, including TRICARE beneficiaries and retail 
        pharmacies.

    (d) Duration of Pilot Program.--If the Secretary carries out the 
pilot program under subsection (a), the Secretary shall commence such 
pilot program no later than October 1, 2017, and shall terminate such 
program no later than September 30, 2018.
    (e) Reports.--If the Secretary carries out the pilot program under 
subsection (a), the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives reports 
on the pilot program as follows:
            (1) Not later than 90 days after the date of the enactment 
        of this Act, a report containing an implementation plan for the 
        pilot program.
            (2) Not later than 180 days after the date on which the 
        pilot program commences, an interim report on the pilot program.
            (3) Not later than 90 days after the date on which the pilot 
        program terminates, a final report describing the results of the 
        pilot program, including--
                    (A) any recommendations of the Secretary to expand 
                such program;
                    (B) an analysis of the changes in prescription drug 
                costs for the Department of Defense relating to the 
                pilot program;
                    (C) an analysis of the impact on beneficiary access 
                to prescription drugs;
                    (D) a survey of beneficiary satisfaction with the 
                pilot program; and

[[Page 130 STAT. 2239]]

                    (E) a summary of any fraud and abuse activities 
                related to the pilot and actions taken in response by 
                the Department.
SEC. 744. <<NOTE: 10 USC 1092 note.>>  PILOT PROGRAM ON DISPLAY OF 
                        WAIT TIMES AT URGENT CARE CLINICS AND 
                        PHARMACIES OF MILITARY MEDICAL TREATMENT 
                        FACILITIES.

    (a) Pilot Program Authorized.--Beginning not later than one year 
after the date of the enactment of this Act, the Secretary of Defense 
shall carry out a pilot program for the display of wait times in urgent 
care clinics and pharmacies of military medical treatment facilities 
selected under subsection (b).
    (b) Selection of Facilities.--
            (1) Categories.--The Secretary shall select not fewer than 
        four military medical treatment facilities from each of the 
        following categories to participate in the pilot program:
                    (A) Medical centers.
                    (B) Hospitals.
                    (C) Ambulatory care centers.
            (2) OCONUS locations.--Of the military medical treatment 
        facilities selected under each category described in 
        subparagraphs (A) through (C) of paragraph (1), not fewer than 
        one shall be located outside of the continental United States.
            (3) Contractor-operated facilities.--The Secretary may 
        select Government-owned, contractor-operated facilities among 
        those military medical treatment facilities selected under 
        paragraph (1).

    (c) Urgent Care Clinics.--
            (1) Placement.--With respect to each military medical 
        treatment facility participating in the pilot program with an 
        urgent care clinic, the Secretary shall place in a conspicuous 
        location at the urgent care clinic an electronic sign that 
        displays the current average wait time determined under 
        paragraph (2) for a patient to be seen by a qualified medical 
        professional.
            (2) Determination.--In carrying out paragraph (1), every 30 
        minutes, the Secretary shall determine the average wait time to 
        display under such paragraph by calculating, for the four-hour 
        period preceding the calculation, the average length of time 
        beginning at the time of the arrival of a patient at the urgent 
        care clinic and ending at the time at which the patient is first 
        seen by a qualified medical professional.

    (d) Pharmacies.--
            (1) Placement.--With respect to each military medical 
        treatment facility participating in the pilot program with a 
        pharmacy, the Secretary shall place in a conspicuous location at 
        the pharmacy an electronic sign that displays the current 
        average wait time to receive a filled prescription for a 
        pharmaceutical agent.
            (2) Determination.--In carrying out paragraph (1), every 30 
        minutes, the Secretary shall determine the average wait time to 
        display under such paragraph by calculating, for the four-hour 
        period preceding the calculation, the average length of time 
        beginning at the time of submission by a patient of a 
        prescription for a pharmaceutical agent and ending at the time 
        at which the pharmacy dispenses the pharmaceutical agent to the 
        patient.

[[Page 130 STAT. 2240]]

    (e) Duration.--The Secretary shall carry out the pilot program for a 
period that is not more than two years.
    (f) Report.--
            (1) Submission.--Not later than 90 days after the completion 
        of the pilot program, the Secretary shall submit to the 
        Committees on Armed Services of the House of Representatives and 
        the Senate a report on the pilot program.
            (2) Elements.--The report under paragraph (1) shall 
        include--
                    (A) the costs for displaying the wait times under 
                subsections (c) and (d);
                    (B) any changes in patient satisfaction;
                    (C) any changes in patient behavior with respect to 
                using urgent care and pharmacy services;
                    (D) any changes in pharmacy operations and 
                productivity;
                    (E) a cost-benefit analysis of posting such wait 
                times; and
                    (F) the feasibility of expanding the posting of wait 
                times in emergency departments in military medical 
                treatment facilities.

    (g) Qualified Medical Professional Defined.--In this section, the 
term ``qualified medical professional'' means a doctor of medicine, a 
doctor of osteopathy, a physician assistant, or an advanced registered 
nurse practitioner.
SEC. 745. <<NOTE: 10 USC 1074 note.>>  REQUIREMENT TO REVIEW AND 
                        MONITOR PRESCRIBING PRACTICES AT MILITARY 
                        TREATMENT FACILITIES OF PHARMACEUTICAL 
                        AGENTS FOR TREATMENT OF POST-TRAUMATIC 
                        STRESS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall--
            (1) conduct a comprehensive review of the prescribing 
        practices at military treatment facilities of pharmaceutical 
        agents for the treatment of post-traumatic stress;
            (2) implement a process or processes to monitor the 
        prescribing practices at military treatment facilities of 
        pharmaceutical agents that are discouraged from use under the 
        VA/DOD Clinical Practice Guideline for Management of Post-
        Traumatic Stress; and
            (3) implement a plan to address any deviations from such 
        guideline in prescribing practices of pharmaceutical agents for 
        management of post-traumatic stress at such facilities.

    (b) Pharmaceutical Agent Defined.--In this section, the term 
``pharmaceutical agent'' has the meaning given that term in section 
1074g(g) of title 10, United States Code.
SEC. 746. DEPARTMENT OF DEFENSE STUDY ON PREVENTING THE DIVERSION 
                        OF OPIOID MEDICATIONS.

    (a) Study.--The Secretary of Defense shall conduct a study on the 
feasibility and effectiveness in preventing the diversion of opioid 
medications of the following measures:
            (1) Requiring that, in appropriate cases, opioid medications 
        be dispensed in vials using affordable technologies designed to 
        prevent access to the medications by anyone other than the 
        intended patient, such as a vial with a locking-cap closure 
        mechanism.

[[Page 130 STAT. 2241]]

            (2) Providing education on the risks of opioid medications 
        to individuals for whom such medications are prescribed, and to 
        their families, with special consideration given to raising 
        awareness among adolescents on such risks.

    (b) Briefing.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Secretary shall provide to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a briefing on the results of the study conducted 
        under subsection (a).
            (2) Elements.--The briefing under paragraph (1) shall 
        include an assessment of the cost effectiveness of the measures 
        studied under subsection (a).
SEC. 747. INCORPORATION INTO SURVEY BY DEPARTMENT OF DEFENSE OF 
                        QUESTIONS ON EXPERIENCES OF MEMBERS OF THE 
                        ARMED FORCES WITH FAMILY PLANNING SERVICES 
                        AND COUNSELING.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Defense shall initiate action to integrate into the 
Health Related Behavior Survey of Active Duty Military Personnel 
questions designed to obtain information on the experiences of members 
of the Armed Forces--
            (1) in accessing family planning services and counseling; 
        and
            (2) in using family planning methods, including information 
        on which method was preferred and whether deployment conditions 
        affected the decision on which family planning method or methods 
        to be used.
SEC. 748. ASSESSMENT OF TRANSITION TO TRICARE PROGRAM BY FAMILIES 
                        OF MEMBERS OF RESERVE COMPONENTS CALLED TO 
                        ACTIVE DUTY AND ELIMINATION OF CERTAIN 
                        CHARGES FOR SUCH FAMILIES.

    (a) Assessment of Transition to TRICARE Program.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        complete an assessment of the extent to which families of 
        members of the reserve components of the Armed Forces serving on 
        active duty pursuant to a call or order to active duty for a 
        period of more than 30 days experience difficulties in 
        transitioning from health care arrangements relied upon when the 
        member is not in such an active duty status to health care 
        benefits under the TRICARE program.
            (2) Elements.--The assessment under paragraph (1) shall 
        address the following:
                    (A) The extent to which family members of members of 
                the reserve components of the Armed Forces are required 
                to change health care providers when they become 
                eligible for health care benefits under the TRICARE 
                program.
                    (B) The extent to which health care providers in the 
                private sector with whom such family members have 
                established relationships when not covered under the 
                TRICARE program are providers who--
                          (i) are in a preferred provider network under 
                      the TRICARE program;
                          (ii) are participating providers under the 
                      TRICARE program; or

[[Page 130 STAT. 2242]]

                          (iii) will agree to treat covered 
                      beneficiaries at a rate not to exceed 115 percent 
                      of the maximum allowable charge under the TRICARE 
                      program.
                    (C) The extent to which such family members 
                encounter difficulties associated with a change in 
                health care claims administration, health care 
                authorizations, or other administrative matters when 
                transitioning to health care benefits under the TRICARE 
                program.
                    (D) Any particular reasons for, or circumstances 
                that explain, the conditions described in subparagraphs 
                (A), (B), and (C).
                    (E) The effects of the conditions described in 
                subparagraphs (A), (B), and (C) on the health care 
                experience of such family members.
                    (F) Recommendations for changes in policies and 
                procedures under the TRICARE program, or other 
                administrative action by the Secretary, to remedy or 
                mitigate difficulties faced by such family members in 
                transitioning to health care benefits under the TRICARE 
                program.
                    (G) Recommendations for legislative action to remedy 
                or mitigate such difficulties.
                    (H) Such other matters as the Secretary determines 
                relevant to the assessment.
            (3) Report.--
                    (A) In general.--Not later than 180 days after 
                completing the assessment under paragraph (1), the 
                Secretary shall submit to the Committees on Armed 
                Services of the Senate and the House of Representatives 
                a report detailing the results of the assessment.
                    (B) Analysis of recommendations.--The report 
                required by subparagraph (A) shall include an analysis 
                of each recommendation for legislative action addressed 
                under paragraph (2)(G), together with a cost estimate 
                for implementing each such action.

    (b) Expansion of Authority To Eliminate Balance Billing.--Section 
1079(h)(4)(C)(ii) of title 10, United States Code, is amended by 
striking ``in support of a contingency operation under a provision of 
law referred to in section 101(a)(13)(B) of this title''.
    (c) Definitions.--In this section, the terms ``covered beneficiary'' 
and ``TRICARE program'' have the meanings given those terms in section 
1072 of title 10, United States Code.
SEC. 749. <<NOTE: 10 USC 1094a note.>>  OVERSIGHT OF GRADUATE 
                        MEDICAL EDUCATION PROGRAMS OF MILITARY 
                        DEPARTMENTS.

    (a) Process.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall establish and 
implement a process to provide oversight of the graduate medical 
education programs of the military departments to ensure that such 
programs fully support the operational medical force readiness 
requirements for health care providers of the Armed Forces and the 
medical readiness of the Armed Forces. The process shall include the 
following:
            (1) A process to review such programs to ensure, to the 
        extent practicable, that such programs are--
                    (A) conducted jointly among the military 
                departments; and

[[Page 130 STAT. 2243]]

                    (B) focused on, and related to, operational medical 
                force readiness requirements.
            (2) A process to minimize duplicative programs relating to 
        such programs among the military departments.
            (3) A process to ensure that--
                    (A) assignments of faculty, support staff, and 
                students within such programs are coordinated among the 
                military departments; and
                    (B) the Secretary optimizes resources by using 
                military medical treatment facilities as training 
                platforms when and where most appropriate.
            (4) A process to review and, if necessary, restructure or 
        realign, such programs to sustain and improve operational 
        medical force readiness.

    (b) Report.--Not later than 30 days after the date on which the 
Secretary establishes the process under subsection (a), the Secretary 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report that describes such process. The 
report shall include a description of each graduate medical education 
program of the military departments, categorized by the following:
            (1) Programs that provide direct support to operational 
        medical force readiness.
            (2) Programs that provide indirect support to operational 
        medical force readiness.
            (3) Academic programs that provide other medical support.

    (c) Comptroller General Review and Report.--
            (1) Review.--The Comptroller General of the United States 
        shall conduct a review of the process established under 
        subsection (a), including with respect to each process described 
        in paragraphs (1) through (4) of such subsection.
            (2) Report.--Not later than 180 days after the date on which 
        the Secretary submits the report under subsection (b), the 
        Comptroller General shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives the 
        review conducted under paragraph (1), including an assessment of 
        the elements of the process established under subsection (a).
SEC. 750. STUDY ON HEALTH OF HELICOPTER AND TILTROTOR PILOTS.

    (a) Study Required.--The Secretary of Defense shall carry out a 
study of career helicopter and tiltrotor pilots to assess potential 
links between the operation of helicopter and tiltrotor aircraft and 
acute and chronic medical conditions experienced by such pilots.
    (b) Elements.--The study under subsection (a) shall include the 
following:
            (1) A study of career helicopter and tiltrotor pilots 
        compared to a control population that--
                    (A) takes into account the amount of time such 
                pilots operated aircraft;
                    (B) examines the severity and rates of acute and 
                chronic injuries experienced by such pilots; and
                    (C) determines whether such pilots experience a 
                higher degree of acute and chronic medical conditions 
                than the control population.
            (2) If a higher degree of acute and chronic medical 
        conditions is observed among such pilots, an explanation of--

[[Page 130 STAT. 2244]]

                    (A) the specific causes of the conditions (such as 
                whole body vibration, seat and cockpit ergonomics, 
                landing loads, hard impacts, and pilot-worn gear); and
                    (B) any costs associated with treating the 
                conditions if the causes are not mitigated.
            (3) A review of relevant scientific literature and prior 
        research.
            (4) Such other information as the Secretary determines to be 
        appropriate.

    (c) Duration.--The duration of the study under subsection (a) shall 
be not more than two years.
    (d) Report.--Not later than 30 days after the completion of the 
study under subsection (a), the Secretary shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives a 
report on the study.
SEC. 751. COMPTROLLER GENERAL REPORTS ON HEALTH CARE DELIVERY AND 
                        WASTE IN MILITARY HEALTH SYSTEM.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and not less frequently than once each year 
thereafter for four years, the Comptroller General of the United States 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report assessing the delivery of health care 
in the military health system, with an emphasis on identifying potential 
waste and inefficiency.
    (b) Elements.--
            (1) In general.--The reports submitted under subsection (a) 
        shall, within the direct and purchased care components of the 
        military health system, evaluate the following:
                    (A) Processes for ensuring that health care 
                providers adhere to clinical practice guidelines.
                    (B) Processes for reporting and resolving adverse 
                medical events.
                    (C) Processes for ensuring program integrity by 
                identifying and resolving medical fraud and waste.
                    (D) Processes for coordinating care within and 
                between the direct and purchased care components of the 
                military health system.
                    (E) Procedures for administering the TRICARE 
                program.
                    (F) Processes for assessing and overseeing the 
                efficiency of clinical operations of military hospitals 
                and clinics, including access to care for covered 
                beneficiaries at such facilities.
            (2) Additional information.--The reports submitted under 
        subsection (a) may include, if the Comptroller General considers 
        feasible--
                    (A) an estimate of the costs to the Department of 
                Defense relating to any waste or inefficiency identified 
                in the report; and
                    (B) such recommendations for action by the Secretary 
                of Defense as the Comptroller General considers 
                appropriate, including eliminating waste and 
                inefficiency in the direct and purchased care components 
                of the military health system.

[[Page 130 STAT. 2245]]

    (c) Definitions.--In this section, the terms ``covered beneficiary'' 
and ``TRICARE program'' have the meaning given those terms in section 
1072 of title 10, United States Code.

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

              Subtitle A--Acquisition Policy and Management

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

          Subtitle B--Department of Defense Acquisition Agility

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

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

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

[[Page 130 STAT. 2246]]

  Subtitle D--Provisions Relating to Major Defense Acquisition Programs

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

        Subtitle E--Provisions Relating to Acquisition Workforce

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

           Subtitle F--Provisions Relating to Commercial Items

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

                   Subtitle G--Industrial Base Matters

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

                        Subtitle H--Other Matters

Sec. 885. Report on bid protests.
Sec. 886. Review and report on indefinite delivery contracts.
Sec. 887.  Review and report on contractual flow-down provisions.
Sec. 888. Requirement and review relating to use of brand names or 
           brand-name or equivalent descriptions in solicitations.

[[Page 130 STAT. 2247]]

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

              Subtitle A--Acquisition Policy and Management

SEC. 801. RAPID ACQUISITION AUTHORITY AMENDMENTS.

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

[[Page 130 STAT. 2248]]

        official for acquisitions using such pathways is the service 
        acquisition executive.'';
                    (B) in paragraph (3)--
                          (i) in subparagraph (A), by inserting ``or 
                      upon the Secretary making a determination that 
                      funds are necessary to immediately initiate a 
                      project under the rapid fielding or rapid 
                      prototyping acquisition pathways under section 804 
                      of the National Defense Authorization Act for 
                      Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 
                      2302 note) based on a compelling national security 
                      need,'' after ``of paragraph (1),'';
                          (ii) in subparagraph (B)--
                                    (I) by striking ``The authority'' 
                                and inserting ``Except as provided under 
                                subparagraph (C), the authority'';
                                    (II) in clause (ii), by striking ``; 
                                and'' and inserting a semicolon;
                                    (III) in clause (iii), by striking 
                                the period at the end and inserting ``; 
                                and''; and
                                    (IV) by adding at the end the 
                                following new clause:
                    ``(iv) in the case of a determination by the 
                Secretary that funds are necessary to immediately 
                initiate a project under the rapid fielding or rapid 
                prototyping acquisition pathways under section 804 of 
                the National Defense Authorization Act for Fiscal Year 
                2016 (Public Law 114-92; 10 U.S.C. 2302 note), in an 
                amount not more than $200,000,000 during any fiscal 
                year.''; and
                          (iii) by adding at the end the following new 
                      subparagraph:
            ``(C) For each of fiscal years 2017 and 2018, the limits set 
        forth in clauses (i) and (ii) of subparagraph (B) do not apply 
        to the exercise of authority under such clauses provided that 
        the total amount of supplies and associated support services 
        acquired as provided under such subparagraph does not exceed 
        $800,000,000 during such fiscal year.'';
                    (C) in paragraph (4)--
                          (i) by redesignating subparagraphs (C), (D), 
                      and (E) as subparagraphs (D), (E), and (F), 
                      respectively; and
                          (ii) by inserting after subparagraph (B) the 
                      following new subparagraph:
            ``(C) In the case of a determination by the Secretary under 
        paragraph (3)(A) that funds are necessary to immediately 
        initiate a project under the rapid fielding or rapid prototyping 
        acquisition pathways under section 804 of the National Defense 
        Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 
        U.S.C. 2302 note), the Secretary shall notify the congressional 
        defense committees of the determination within 10 days after the 
        date of the use of such funds.''; and
                    (D) in paragraph (5)--
                          (i) by striking ``Any acquisition'' and 
                      inserting ``(A) Any acquisition''; and
                          (ii) by adding at the end the following new 
                      subparagraph:
            ``(B) Subparagraph (A) does not apply to acquisitions 
        initiated in the case of a determination by the Secretary that

[[Page 130 STAT. 2249]]

        funds are necessary to immediately initiate a project under the 
        rapid fielding or rapid prototyping acquisition pathways under 
        section 804 of the National Defense Authorization Act for Fiscal 
        Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note).''.
SEC. 802. AUTHORITY FOR TEMPORARY SERVICE OF PRINCIPAL MILITARY 
                        DEPUTIES TO THE ASSISTANT SECRETARIES OF 
                        THE MILITARY DEPARTMENTS FOR ACQUISITION 
                        AS ACTING ASSISTANT SECRETARIES.

    (a) Assistant Secretary of the Army for Acquisition, Logistics, and 
Technology.--Section 3016(b)(5)(B) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``In the event 
of a vacancy in the position of Assistant Secretary of the Army for 
Acquisition, Logistics, and Technology, the Principal Military Deputy 
may serve as Acting Assistant Secretary for a period of not more than 
one year.''.
    (b) Assistant Secretary of the Navy for Research, Development, and 
Acquisition.--Section 5016(b)(4)(B) of such title is amended by adding 
at the end the following new sentence: ``In the event of a vacancy in 
the position of Assistant Secretary of the Navy for Research, 
Development, and Acquisition, the Principal Military Deputy may serve as 
Acting Assistant Secretary for a period of not more than one year.''.
    (c) Assistant Secretary of the Air Force for Acquisition.--Section 
8016(b)(4)(B) of such title is amended by adding at the end the 
following new sentence: ``In the event of a vacancy in the position of 
Assistant Secretary of the Air Force for Acquisition, the Principal 
Military Deputy may serve as Acting Assistant Secretary for a period of 
not more than one year.''.
SEC. 803. <<NOTE: 10 USC 2330 note.>>  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) <<NOTE: 10 USC 1741 note.>>  Guidance Regarding Training and 
Development of the Acquisition Workforce.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Defense shall issue 
        guidance addressing the training and development of the 
        Department of Defense workforce engaged in the procurement of 
        services, including those personnel not designated as members of 
        the acquisition workforce.
            (2) Identification of training and professional development 
        opportunities and alternatives.--The guidance required under 
        paragraph (1) shall identify training and professional 
        development opportunities and alternatives, not

[[Page 130 STAT. 2250]]

        limited to existing Department of Defense institutions, that 
        focus on and provide relevant training and professional 
        development in commercial business models and contracting.
            (3) Treatment of training and professional development.--Any 
        training and professional development provided pursuant to this 
        subsection outside Department of Defense institutions shall be 
        deemed to be equivalent to similar training certified or 
        provided by the Defense Acquisition University.
SEC. 804. DEFENSE MODERNIZATION ACCOUNT AMENDMENTS.

    (a) Funds Available for Account.--Section 2216(b)(1) of title 10, 
United States Code, is amended by striking ``commencing''.
    (b) Transfers to Account.--Section 2216(c) of such title is 
amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``or the Secretary of Defense with 
                respect to Defense-wide appropriations accounts'' and 
                inserting ``, or the Secretary of Defense with respect 
                to Defense-wide appropriations accounts,''; and
                    (B) by striking ``that Secretary'' and inserting 
                ``the Secretary concerned'';
            (2) in paragraph (1)(B)--
                    (A) by inserting after ``following funds'' the 
                following: ``that have been appropriated for fiscal 
                years after fiscal year 2016 and are'';
                    (B) in clause (i)--
                          (i) by striking ``for procurement'' and 
                      inserting ``for new obligations'';
                          (ii) by striking ``a particular procurement'' 
                      and inserting ``an acquisition program''; and
                          (iii) by striking ``that procurement'' and 
                      inserting ``that program'';
                    (C) by striking clause (ii); and
                    (D) by redesignating clause (iii) as clause (ii);
            (3) in paragraph (2)--
                    (A) by striking ``, other than funds referred to in 
                subparagraph (B)(iii) of such paragraph,''; and
                    (B) by striking ``if--'' and all that follows 
                through ``(B) the balance of funds'' and inserting ``if 
                the balance of funds'';
            (4) in paragraph (3)--
                    (A) by striking ``credited to'' both places it 
                appears and inserting ``deposited in''; and
                    (B) by inserting ``and obligation'' after 
                ``available for transfer''; and
            (5) by striking paragraph (4).

    (c) Authorized Use of Funds.--Section 2216(d) of such title is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``commencing''; and
                    (B) by striking ``Secretary of Defense'' and 
                inserting ``Secretary concerned'';
            (2) in paragraph (2), by striking ``a procurement program'' 
        and inserting ``an acquisition program'';
            (3) by amending paragraph (3) to read as follows:
            ``(3) For research, development, test, and evaluation, for 
        procurement, and for sustainment activities necessary for paying 
        costs of unforeseen contingencies that are approved

[[Page 130 STAT. 2251]]

        by the milestone decision authority concerned, that could 
        prevent an ongoing acquisition program from meeting critical 
        schedule or performance requirements.''; and
            (4) by inserting at the end the following new paragraph:
            ``(4) For paying costs of changes to program requirements or 
        system configuration that are approved by the configuration 
        steering board for a major defense acquisition program.''.

    (d) Limitations.--Section 2216(e) of such title is amended--
            (1) in paragraph (1), by striking ``procurement program'' 
        both places it appears and inserting ``acquisition program''; 
        and
            (2) in paragraph (2), by striking ``authorized 
        appropriations'' and inserting ``authorized appropriations, 
        unless the procedures for initiating a new start program are 
        complied with''.

    (e) Transfer of Funds.--Section 2216(f)(1) of such title is amended 
by striking ``Secretary of Defense'' and inserting ``Secretary of a 
military department, or the Secretary of Defense with respect to 
Defense-wide appropriations accounts,''.
    (f) Availability of Funds by Appropriation.--Section 2216(g) of such 
title is amended--
            (1) by striking ``in accordance with the provisions of 
        appropriations Acts''; and
            (2) by adding at the end the following: ``Funds deposited in 
        the Defense Modernization Account shall remain available for 
        obligation until the end of the third fiscal year that follows 
        the fiscal year in which the amounts are deposited in the 
        account.''.

    (g) Secretary to Act Through Comptroller.--Section 2216(h)(2) of 
such title is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        subparagraphs (B), (C), and (D), respectively;
            (2) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
                    ``(A) the establishment and management of 
                subaccounts for each of the military departments and 
                Defense Agencies concerned for the use of funds in the 
                Defense Modernization Account, consistent with each 
                military department's or Defense Agency's deposits in 
                the Account;'';
            (3) in subparagraph (C), as so redesignated, by inserting 
        ``and subaccounts'' after ``Account''; and
            (4) in subparagraph (D), as so redesignated, by striking 
        ``subsection (c)(1)(B)(iii)'' and inserting ``subsection 
        (c)(1)(B)(ii)''.

    (h) Definitions.--Paragraph (1) of section 2216(i) of such title is 
amended to read as follows:
            ``(1) The term `major defense acquisition program' has the 
        meaning given the term in section 2430(a) of this title.''.

    (j) Expiration of Authority.--Section 2216(j)(1) of such title is 
amended by striking ``terminates at the close of September 30, 2006'' 
and inserting ``terminates at the close of September 30, 2022''.

[[Page 130 STAT. 2252]]

          Subtitle B--Department of Defense Acquisition Agility

SEC. 805. MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF MAJOR 
                        WEAPON SYSTEMS.

    (a) Modular Open System Approach.--
            (1) In general.--Part IV of subtitle A of title 10, United 
        States Code, <<NOTE: 10 USC 2446a prec.>> 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 <<NOTE: 10 USC 2446a prec.>>  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. <<NOTE: 10 USC 2446a.>>  Requirement for modular 
                    open system approach in major defense 
                    acquisition programs; definitions

    ``(a) Modular Open System Approach Requirement.--A major defense 
acquisition program that receives Milestone A or Milestone B approval 
after January 1, 2019, shall be designed and developed, to the maximum 
extent practicable, with a modular open system approach to enable 
incremental development and enhance competition, innovation, and 
interoperability.
    ``(b) Definitions.--In this chapter:
            ``(1) The term `modular open system approach' means, with 
        respect to a major defense acquisition program, an integrated 
        business and technical strategy that--
                    ``(A) employs a modular design that uses major 
                system interfaces between a major system platform and a 
                major system component, between major system components, 
                or between major system platforms;
                    ``(B) is subjected to verification to ensure major 
                system interfaces comply with, if available and 
                suitable, widely supported and consensus-based 
                standards;
                    ``(C) uses a system architecture that allows 
                severable major system components at the appropriate 
                level to be incrementally added, removed, or replaced 
                throughout the life cycle of a major system platform to 
                afford opportunities for enhanced competition and 
                innovation while yielding--
                          ``(i) significant cost savings or avoidance;
                          ``(ii) schedule reduction;

[[Page 130 STAT. 2253]]

                          ``(iii) opportunities for technical upgrades;
                          ``(iv) increased interoperability, including 
                      system of systems interoperability and mission 
                      integration; or
                          ``(v) other benefits during the sustainment 
                      phase of a major weapon system; and
                    ``(D) complies with the technical data rights set 
                forth in section 2320 of this title.
            ``(2) The term `major system platform' means the highest 
        level structure of a major weapon system that is not physically 
        mounted or installed onto a higher level structure and on which 
        a major system component can be physically mounted or installed.
            ``(3) The term `major system component'--
                    ``(A) means a high level subsystem or assembly, 
                including hardware, software, or an integrated assembly 
                of both, that can be mounted or installed on a major 
                system platform through well-defined major system 
                interfaces; and
                    ``(B) includes a subsystem or assembly that is 
                likely to have additional capability requirements, is 
                likely to change because of evolving technology or 
                threat, is needed for interoperability, facilitates 
                incremental deployment of capabilities, or is expected 
                to be replaced by another major system component.
            ``(4) The term `major system interface'--
                    ``(A) means a shared boundary between a major system 
                platform and a major system component, between major 
                system components, or between major system platforms, 
                defined by various physical, logical, and functional 
                characteristics, such as electrical, mechanical, 
                fluidic, optical, radio frequency, data, networking, or 
                software elements; and
                    ``(B) is characterized clearly in terms of form, 
                function, and the content that flows across the 
                interface in order to enable technological innovation, 
                incremental improvements, integration, and 
                interoperability.
            ``(5) The term `program capability document' means, with 
        respect to a major defense acquisition program, a document that 
        specifies capability requirements for the program, such as a 
        capability development document or a capability production 
        document.
            ``(6) The terms `program cost targets' and `fielding target' 
        have the meanings provided in section 2448a(a) of this title.
            ``(7) The term `major defense acquisition program' has the 
        meaning provided in section 2430 of this title.
            ``(8) The term `major weapon system' has the meaning 
        provided in section 2379(f) of this title.
``Sec. 2446b. <<NOTE: 10 USC 2446b.>>  Requirement to address 
                    modular open system approach in program 
                    capabilities development and acquisition 
                    weapon system design

    ``(a) Program Capability Document.--A program capability document 
for a major defense acquisition program shall identify and 
characterize--
            ``(1) the extent to which requirements for system 
        performance are likely to evolve during the life cycle of the 
        system

[[Page 130 STAT. 2254]]

        because of evolving technology, threat, or interoperability 
        needs; and
            ``(2) for requirements that are expected to evolve, the 
        minimum acceptable capability that is necessary for initial 
        operating capability of the major defense acquisition program.

    ``(b) Analysis of Alternatives.--The Director of Cost Assessment and 
Performance Evaluation, in formulating study guidance for analyses of 
alternatives for major defense acquisition programs and performing such 
analyses under section 139a(d)(4) of this title, shall ensure that any 
such analysis for a major defense acquisition program includes 
consideration of evolutionary acquisition, prototyping, and a modular 
open system approach.
    ``(c) Acquisition Strategy.--In the case of a major defense 
acquisition program that uses a modular open system approach, the 
acquisition strategy required under section 2431a of this title shall--
            ``(1) clearly describe the modular open system approach to 
        be used for the program;
            ``(2) differentiate between the major system platform and 
        major system components being developed under the program, as 
        well as major system components developed outside the program 
        that will be integrated into the major defense acquisition 
        program;
            ``(3) clearly describe the evolution of major system 
        components that are anticipated to be added, removed, or 
        replaced in subsequent increments;
            ``(4) identify additional major system components that may 
        be added later in the life cycle of the major system platform;
            ``(5) clearly describe how intellectual property and related 
        issues, such as technical data deliverables, that are necessary 
        to support a modular open system approach, will be addressed; 
        and
            ``(6) clearly describe the approach to systems integration 
        and systems-level configuration management to ensure mission and 
        information assurance.

    ``(d) Request for Proposals.--The milestone decision authority for a 
major defense acquisition program that uses a modular open system 
approach shall ensure that a request for proposals for the development 
or production phases of the program shall describe the modular open 
system approach and the minimum set of major system components that must 
be included in the design of the major defense acquisition program.
    ``(e) Milestone B.--A major defense acquisition program may not 
receive Milestone B approval under section 2366b of this title until the 
milestone decision authority determines in writing that--
            ``(1) in the case of a program that uses a modular open 
        system approach--
                    ``(A) the program incorporates clearly defined major 
                system interfaces between the major system platform and 
                major system components, between major system 
                components, and between major system platforms;
                    ``(B) such major system interfaces are consistent 
                with the widely supported and consensus-based standards 
                that exist at the time of the milestone decision, unless 
                such standards are unavailable or unsuitable for 
                particular major system interfaces; and

[[Page 130 STAT. 2255]]

                    ``(C) the Government has arranged to obtain 
                appropriate and necessary intellectual property rights 
                with respect to such major system interfaces upon 
                completion of the development of the major system 
                platform; or
            ``(2) in the case of a program that does not use a modular 
        open system approach, that the use of a modular open system 
        approach is not practicable.
``Sec. 2446c. <<NOTE: 10 USC 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) <<NOTE: 10 USC 101 prec., 2201 prec.>>  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) <<NOTE: 10 USC 2446a note.>>  Effective date.--
        Subchapter I of chapter 144B of title 10, United States Code, as 
        added by paragraph (1), shall take effect on January 1, 2017.

    (b) Requirement to Include Modular Open System Approach in Selected 
Acquisition Reports.--Section 2432(c)(1) of such title is amended--
            (1) by striking ``and'' at the end of subparagraph (F);

[[Page 130 STAT. 2256]]

            (2) by redesignating subparagraph (G) as subparagraph (H); 
        and
            (3) by inserting after subparagraph (F) the following new 
        subparagraph (G):
            ``(G) for each major defense acquisition program that 
        receives Milestone B approval after January 1, 2019, a brief 
        summary description of the key elements of the modular open 
        system approach as defined in section 2446a of this title or, if 
        a modular open system approach was not used, the rationale for 
        not using such an approach; and''.
SEC. 806. DEVELOPMENT, PROTOTYPING, AND DEPLOYMENT OF WEAPON 
                        SYSTEM COMPONENTS OR TECHNOLOGY.

    (a) Development, Prototyping, and Deployment of Weapon System 
Components or Technology.--
            (1) In general.--Chapter 144B of title 10, United States 
        Code, as added by section 805, is further amended by adding at 
        the end the following new subchapter:

``SUBCHAPTER <<NOTE: 10 USC 2447a prec.>>  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. <<NOTE: 10 USC 2447a.>>  Weapon system component or 
                    technology prototype projects: display of 
                    budget information

    ``(a) Requirements for Budget Display.--In the defense budget 
materials for any fiscal year after fiscal year 2017, the Secretary of 
Defense shall, with respect to advanced component development and 
prototype activities (within the research, development, test, and 
evaluation budget), set forth the amounts requested for each of the 
following:
            ``(1) Acquisition programs of record.
            ``(2) Development, prototyping, and experimentation of 
        weapon system components or other technologies, including those 
        based on commercial items and technologies, separate from 
        acquisition programs of record.
            ``(3) Other budget line items as determined by the Secretary 
        of Defense.

    ``(b) Additional Requirements.--For purposes of subsection (a)(2), 
the amounts requested for development, prototyping, and experimentation 
of weapon system components or other technologies shall be--
            ``(1) structured into either capability, weapon system 
        component, or technology portfolios that reflect the priority 
        areas for prototype projects; and
            ``(2) justified with general descriptions of the types of 
        capability areas and technologies being funded or expected to be 
        funded during the fiscal year concerned.

[[Page 130 STAT. 2257]]

    ``(c) Definitions.--In this section, the terms `budget' and `defense 
budget materials' have the meaning given those terms in section 234 of 
this title.
``Sec. 2447b. <<NOTE: 10 USC 2447b.>>  Weapon system component or 
                    technology prototype projects: oversight

    ``(a) Establishment.--The Secretary of each military department 
shall establish an oversight board or identify a similar existing group 
of senior advisors for managing prototype projects for weapon system 
components and other technologies and subsystems, including the use of 
funds for such projects, within the military department concerned.
    ``(b) Membership.--Each oversight board shall be comprised of senior 
officials with--
            ``(1) expertise in requirements; research, development, 
        test, and evaluation; acquisition; sustainment; or other 
        relevant areas within the military department concerned;
            ``(2) awareness of technology development activities and 
        opportunities in the Department of Defense, industry, and other 
        sources; and
            ``(3) awareness of the component capability requirements of 
        major weapon systems, including scheduling and fielding goals 
        for such component capabilities.

    ``(c) Functions.--The functions of each oversight board are as 
follows:
            ``(1) To issue a strategic plan every three years that 
        prioritizes the capability and weapon system component portfolio 
        areas for conducting prototype projects, based on assessments 
        of--
                    ``(A) high priority warfighter needs;
                    ``(B) capability gaps or readiness issues with major 
                weapon systems;
                    ``(C) opportunities to incrementally integrate new 
                components into major weapon systems based on commercial 
                technology or science and technology efforts that are 
                expected to be sufficiently mature to prototype within 
                three years; and
                    ``(D) opportunities to reduce operation and support 
                costs of major weapon systems.
            ``(2) To annually recommend funding levels for weapon system 
        component or technology development and prototype projects 
        across capability or weapon system component portfolios.
            ``(3) To annually recommend to the service acquisition 
        executive of the military department concerned specific weapon 
        system component or technology development and prototype 
        projects, subject to the requirements and limitations in section 
        2447c of this title.
            ``(4) To ensure projects are managed by experts within the 
        Department of Defense who are knowledgeable in research, 
        development, test, and evaluation and who are aware of 
        opportunities for incremental deployment of component 
        capabilities and other technologies to major weapon systems or 
        directly to support warfighting capabilities.
            ``(5) To ensure projects are conducted in a manner that 
        allows for appropriate experimentation and technology risk.

[[Page 130 STAT. 2258]]

            ``(6) To ensure projects have a plan for technology 
        transition of the prototype into a fielded system, program of 
        record, or operational use, as appropriate, upon successful 
        achievement of technical and project goals.
            ``(7) To ensure necessary technical, contracting, and 
        financial management resources are available to support each 
        project.
            ``(8) To submit to the congressional defense committees a 
        semiannual notification that includes the following:
                    ``(A) each weapon system component or technology 
                prototype project initiated during the preceding six 
                months, including an explanation of each project and its 
                required funding.
                    ``(B) the results achieved from weapon system 
                component prototype and technology projects completed 
                and tested during the preceding six months.
``Sec. 2447c. <<NOTE: 10 USC 2447c.>>  Requirements and 
                    limitations for weapon system component or 
                    technology prototype projects

    ``(a) Limitation on Prototype Project Duration.--A prototype project 
shall be completed within two years of its initiation.
    ``(b) Merit-based Selection Process.--A prototype project shall be 
selected by the service acquisition executive of the military department 
concerned through a merit-based selection process that identifies the 
most promising, innovative, and cost-effective prototypes that address 
one or more of the elements set forth in subsection (c)(1) of section 
2447b of this title and are expected to be successfully demonstrated in 
a relevant environment.
    ``(c) Type of Transaction.--Prototype projects shall be funded 
through contracts, cooperative agreements, or other transactions.
    ``(d) Funding Limit.--(1) Each prototype project may not exceed a 
total amount of $10,000,000 (based on fiscal year 2017 constant 
dollars), unless--
            ``(A) the Secretary of the military department, or the 
        Secretary's designee, approves a larger amount of funding for 
        the project, not to exceed $50,000,000; and
            ``(B) the Secretary, or the Secretary's designee, submits to 
        the congressional defense committees, within 30 days after 
        approval of such funding for the project, a notification that 
        includes--
                    ``(i) the project;
                    ``(ii) expected funding for the project; and
                    ``(iii) a statement of the anticipated outcome of 
                the project.

    ``(2) The Secretary of Defense may adjust the amounts (and the base 
fiscal year) provided in paragraph (1) on the basis of Department of 
Defense escalation rates.
    ``(e) Related Prototype Authorities.--Prototype projects that exceed 
the duration and funding limits established in this section shall be 
pursued under the rapid prototyping process established by section 804 
of the National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114-92; 10 U.S.C. 2302 note). In addition, nothing in this 
subchapter shall affect the authority to carry out prototype projects 
under section 2371b or any other section of this title related to 
prototyping.

[[Page 130 STAT. 2259]]

``Sec. 2447d. <<NOTE: 10 USC 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. <<NOTE: 10 USC 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) <<NOTE: 10 USC 2447a note.>>  Effective date.--
        Subchapter II of chapter 144B of title 10, United States Code, 
        as added by paragraph (1), shall take effect on January 1, 2017.

    (b) Addition to Requirements Needed Before Milestone A Approval.--
Section 2366a(b) of such title is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by redesignating paragraph (8) as paragraph (9); and
            (3) by inserting after paragraph (7) the following new 
        paragraph (8):
            ``(8) that, with respect to a program initiated after 
        January 1, 2019, technology shall be developed in the program 
        (after

[[Page 130 STAT. 2260]]

        Milestone A approval) only if the milestone decision authority 
        determines with a high degree of confidence that such 
        development will not delay the fielding target of the program, 
        or, if the milestone decision authority does not make such 
        determination for a major system component being developed under 
        the program, the milestone decision authority ensures that the 
        technology related to the major system component shall be 
        sufficiently matured and demonstrated in a relevant environment 
        (after Milestone A approval) separate from the program using the 
        prototyping authorities in subchapter II of chapter 144B of this 
        title or other authorities, as appropriate, and have an 
        effective plan for adoption or insertion by the relevant 
        program; and''.
SEC. 807. COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE 
                        ACQUISITION PROGRAMS.

    (a) Cost, Schedule, and Performance of Major Defense Acquisition 
Programs.--
            (1) In general.--Chapter 144B of title 10, United States 
        Code, as added by section 805, <<NOTE: 10 USC 2448a prec.>> 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. <<NOTE: 10 USC 2448a.>>  Program cost, fielding, and 
                    performance goals in planning major defense 
                    acquisition programs

    ``(a) Program Cost and Fielding Targets.--(1) Before funds are 
obligated for technology development, systems development, or production 
of a major defense acquisition program, the Secretary of Defense shall 
ensure, by establishing the goals described in paragraph (2), that the 
milestone decision authority for the major defense acquisition program 
approves a program that will--
            ``(A) be affordable;
            ``(B) incorporate program planning that anticipates the 
        evolution of capabilities to meet changing threats, technology 
        insertion, and interoperability; and
            ``(C) be fielded when needed.

    ``(2) The goals described in this paragraph are goals for--
            ``(A) the procurement unit cost and sustainment cost 
        (referred to in this section as the `program cost targets');
            ``(B) the date for initial operational capability (referred 
        to in this section as the `fielding target'); and
            ``(C) technology maturation, prototyping, and a modular open 
        system approach to evolve system capabilities and improve 
        interoperability.

    ``(b) Delegation.--The responsibilities of the Secretary of Defense 
in subsection (a) may be delegated only to the Deputy Secretary of 
Defense.
    ``(c) Definitions.--In this section:
            ``(1) The term `procurement unit cost' has the meaning 
        provided in section 2432(a)(2) of this title.

[[Page 130 STAT. 2261]]

            ``(2) The term `initial capabilities document' has the 
        meaning provided in section 2366a(d)(2) of this title.
``Sec. 2448b. <<NOTE: 10 USC 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) <<NOTE: 10 USC 2448a note.>>  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) <<NOTE: 10 USC 2430 note.>>  Modification of Milestone Decision 
Authority.--Effective January 1, 2017, subsection (d) of section 2430 of 
title 10, United States Code, as added by section 825(a) of the National 
Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 
Stat. 907), is amended--
            (1) in paragraph (2)(A), by inserting ``subject to paragraph 
        (5),'' before ``the Secretary determines''; and
            (2) by adding at the end the following new paragraph:

    ``(5) The authority of the Secretary of Defense to designate an 
alternative milestone decision authority for a program with respect to 
which the Secretary determines that the program is addressing a joint 
requirement, as set forth in paragraph (2)(A), shall apply only for a 
major defense acquisition program that reaches Milestone A after October 
1, 2016, and before October 1, 2019.''.
    (c) Adherence to Requirements in Major Defense Acquisition 
Programs.--Section 2547 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Adherence to Requirements in Major Defense Acquisition 
Programs.--The Secretary of the military department concerned shall 
ensure that the program capability document supporting a Milestone B or 
subsequent decision for a major defense acquisition program may not be 
approved until the chief of the armed force concerned determines in 
writing that the requirements in the document are necessary and 
realistic in relation to the program cost and fielding targets 
established under section 2448a(a) of this title.''; and

[[Page 130 STAT. 2262]]

            (3) by adding at the end of subsection (d), as so 
        redesignated, the following new paragraph:
            ``(3) The term `program capability document' has the meaning 
        provided in section 2446a(b)(5) of this title.''.

    (d) Amendment Relating to Determination Required Before Milestone A 
Approval.--Section 2366a(b)(4) of title 10, United States Code, is 
amended by inserting after ``areas of risk'' the following: ``, 
including risks determined by the identification of critical 
technologies required under section 2448b(a)(1) of this title or any 
other risk assessment''.
    (e) Amendment Relating to Certification Required Before Milestone B 
Approval.--Section 2366b(a) of title 10, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``assessment by the 
        Assistant Secretary'' and all that follows through ``Test and 
        Evaluation'' and inserting ``technical risk assessment conducted 
        under section 2448b of this title''; and
            (2) in paragraph (3), as amended by section 805(a)(3)(B)--
                    (A) by striking ``and'' at the end of subparagraph 
                (C);
                    (B) by redesignating subparagraphs (D) through (M) 
                as subparagraphs (E) through (N), respectively; and
                    (C) by inserting after subparagraph (C) the 
                following new subparagraph (D):
                    ``(D) the estimated procurement unit cost for the 
                program and the estimated date for initial operational 
                capability for the baseline description for the program 
                (established under section 2435) do not exceed the 
                program cost and fielding targets established under 
                section 2448a(a) of this title, or, if such estimated 
                cost is higher than the program cost targets or if such 
                estimated date is later than the fielding target, the 
                program cost targets have been increased or the fielding 
                target has been delayed by the Secretary of Defense 
                after a request for such increase or delay by the 
                milestone decision authority;''.
SEC. 808. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Milestone A Report.--
            (1) In general.--Section 2366a(c) of title 10, United States 
        Code, is amended to read as follows:

    ``(c) Submissions to Congress on Milestone A.--
            ``(1) Brief summary report.--Not later than 15 days after 
        granting Milestone A approval for a major defense acquisition 
        program, the milestone decision authority for the program shall 
        provide to the congressional defense committees and, in the case 
        of intelligence or intelligence-related activities, the 
        congressional intelligence committees a brief summary report 
        that contains the following elements:
                    ``(A) The program cost and fielding targets 
                established by the Secretary of Defense under section 
                2448a(a) of this title.
                    ``(B) The estimated cost and schedule for the 
                program established by the military department 
                concerned, including--
                          ``(i) the dollar values estimated for the 
                      program acquisition unit cost and total life-cycle 
                      cost; and

[[Page 130 STAT. 2263]]

                          ``(ii) the planned dates for each program 
                      milestone and initial operational capability.
                    ``(C) The independent estimated cost for the program 
                established pursuant to section 2334(a)(6) of this 
                title, and any independent estimated schedule for the 
                program, including--
                          ``(i) as assessment of the major contributors 
                      to the program acquisition unit cost and total 
                      life-cycle cost; and
                          ``(ii) the planned dates for each program 
                      milestone and initial operational capability.
                    ``(D) A summary of the technical or manufacturing 
                risks associated with the program, as determined by the 
                military department concerned, including identification 
                of any critical technologies or manufacturing processes 
                that need to be matured.
                    ``(E) A summary of the independent technical risk 
                assessment conducted or approved under section 2448b of 
                this title, including identification of any critical 
                technologies or manufacturing processes that need to be 
                matured.
                    ``(F) A summary of any sufficiency review conducted 
                by the Director of Cost Assessment and Program 
                Evaluation of the analysis of alternatives performed for 
                the program (as referred to in section 2366a(b)(6) of 
                this title).
                    ``(G) Any other information the milestone decision 
                authority considers relevant.
            ``(2) Additional information.--(A) At the request of any of 
        the congressional defense committees or, in the case of 
        intelligence or intelligence-related activities, the 
        congressional intelligence committees, the milestone decision 
        authority shall submit to the committee an explanation of the 
        basis for a determination made under subsection (b) with respect 
        to a major defense acquisition program, together with a copy of 
        the written determination, or further information or underlying 
        documentation for the information in a brief summary report 
        submitted under paragraph (1), including the independent cost 
        and schedule estimates and the independent technical risk 
        assessments referred to in that paragraph.
            ``(B) The explanation or information shall be submitted in 
        unclassified form, but may include a classified annex.''.
            (2) Definitions.--Section 2366a(d) of such title is amended 
        by adding at the end the following new paragraphs:
            ``(8) The term `fielding target' has the meaning given that 
        term in section 2448a(a) of this title.
            ``(9) The term `major system component' has the meaning 
        given that term in section 2446a(b)(3) of this title.
            ``(10) The term `congressional intelligence committees' has 
        the meaning given that term in section 437(c) of this title.''.

    (b) Milestone B Report.--
            (1) In general.--Section 2366b(c) of title 10, United States 
        Code, is amended to read as follows:

    ``(c) Submissions to Congress on Milestone B.--
            ``(1) Brief summary report.--Not later than 15 days after 
        granting Milestone B approval for a major defense acquisition 
        program, the milestone decision authority for the program shall 
        provide to the congressional defense committees and, in the

[[Page 130 STAT. 2264]]

        case of intelligence or intelligence-related activities, the 
        congressional intelligence committees a brief summary report 
        that contains the following elements:
                    ``(A) The program cost and fielding targets 
                established by the Secretary of Defense under section 
                2448a(a) of this title.
                    ``(B) The estimated cost and schedule for the 
                program established by the military department 
                concerned, including--
                          ``(i) the dollar values estimated for the 
                      program acquisition unit cost, average procurement 
                      unit cost, and total life-cycle cost; and
                          ``(ii) the planned dates for each program 
                      milestone, initial operational test and 
                      evaluation, and initial operational capability.
                    ``(C) The independent estimated cost for the program 
                established pursuant to section 2334(a)(6) of this 
                title, and any independent estimated schedule for the 
                program, including--
                          ``(i) the dollar values and ranges estimated 
                      for the program acquisition unit cost, average 
                      procurement unit cost, and total life-cycle cost; 
                      and
                          ``(ii) the planned dates for each program 
                      milestone, initial operational test and 
                      evaluation, and initial operational capability.
                    ``(D) A summary of the technical and manufacturing 
                risks associated with the program, as determined by the 
                military department concerned, including identification 
                of any critical technologies or manufacturing processes 
                that have not been successfully demonstrated in a 
                relevant environment.
                    ``(E) A summary of the independent technical risk 
                assessment conducted or approved under section 2448b of 
                this title, including identification of any critical 
                technologies or manufacturing processes that have not 
                been successfully demonstrated in a relevant 
                environment.
                    ``(F) A statement of whether a modular open system 
                approach is being used for the program.
                    ``(G) Any other information the milestone decision 
                authority considers relevant.
            ``(2) Certifications and determinations.--(A) The 
        certifications and determination under subsection (a) with 
        respect to a major defense acquisition program shall be 
        submitted to the congressional defense committees with the first 
        Selected Acquisition Report submitted under section 2432 of this 
        title after completion of the certification.
            ``(B) The milestone decision authority shall retain records 
        of the basis for the certifications and determination under 
        paragraphs (1), (2), and (3) of subsection (a).
            ``(3) Additional information.--(A) At the request of any of 
        the congressional defense committees or, in the case of 
        intelligence or intelligence-related activities, the 
        congressional intelligence committees, the milestone decision 
        authority shall submit to the committee an explanation of the 
        basis for the certifications and determination under paragraphs 
        (1), (2), and (3) of subsection (a) with respect to a major 
        defense acquisition program or further information or underlying 
        documentation

[[Page 130 STAT. 2265]]

        for the information in a brief summary report submitted under 
        paragraph (1), including the independent cost and schedule 
        estimates and the independent technical risk assessments 
        referred to in that paragraph.
            ``(B) The explanation or information shall be submitted in 
        unclassified form, but may include a classified annex.''.
            (2) Definitions.--Section 2366b(g) of such title is amended 
        by adding at the end the following new paragraphs:
            ``(6) The term `fielding target' has the meaning given that 
        term in section 2448a(a) of this title.
            ``(7) The term `major system component' has the meaning 
        given that term in section 2446a(b)(3) of this title.
            ``(8) The term `congressional intelligence committees' has 
        the meaning given that term in section 437(c) of this title.''.

    (c) Milestone C Report.--
            (1) In general.--Chapter 139 of such title is amended by 
        inserting after section 2366b the following new section:
``Sec. 2366c. <<NOTE: 10 USC 2366c.>>  Major defense acquisition 
                    programs: submissions to Congress on Milestone 
                    C

    ``(a) Brief Summary Report.--Not later than 15 days after granting 
Milestone C approval for a major defense acquisition program, the 
milestone decision authority for the program shall provide to the 
congressional defense committees and, in the case of intelligence or 
intelligence-related activities, the congressional intelligence 
committees a brief summary report that contains the following:
            ``(1) The estimated cost and schedule for the program 
        established by the military department concerned, including--
                    ``(A) the dollar values estimated for the program 
                acquisition unit cost, average procurement unit cost, 
                and total life-cycle cost; and
                    ``(B) the planned dates for initial operational test 
                and evaluation and initial operational capability.
            ``(2) The independent estimated cost for the program 
        established pursuant to section 2334(a)(6) of this title, and 
        any independent estimated schedule for the program, including--
                    ``(A) the dollar values estimated for the program 
                acquisition unit cost, average procurement unit cost, 
                and total life-cycle cost; and
                    ``(B) the planned dates for initial operational test 
                and evaluation and initial operational capability.
            ``(3) A summary of any production, manufacturing, and 
        fielding risks associated with the program.

    ``(b) Additional Information.--At the request of any of the 
congressional defense committees or, in the case of intelligence or 
intelligence-related activities, the congressional intelligence 
committees, the milestone decision authority shall submit to the 
committee further information or underlying documentation for the 
information in a brief summary report submitted under subsection (a), 
including the independent cost and schedule estimates and the 
independent technical risk assessments referred to in that subsection.
    ``(c) Congressional Intelligence Committees Defined.--In this 
section, the term `congressional intelligence committees' has the 
meaning given that term in section 437(c) of this title.''.

[[Page 130 STAT. 2266]]

            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter <<NOTE: 10 USC 2351 prec.>> is amended 
        by inserting after the item relating to section 2366b the 
        following new item:

``2366c. Major defense acquisition programs: submissions to Congress on 
           Milestone C.''.

SEC. 809. AMENDMENTS RELATING TO TECHNICAL DATA RIGHTS.

    (a) Rights Relating to Item or Process Developed Exclusively at 
Private Expense.--Subsection (a)(2)(C)(iii) of section 2320 of title 10, 
United States Code, is amended by inserting after ``or process data'' 
the following: ``, including such data pertaining to a major system 
component''.
    (b) Rights Relating to Interface or Major System Interface.--
Subsection (a)(2) of section 2320 of such title is further amended--
            (1) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (H) and (I), respectively;
            (2) in subparagraph (B), by striking ``Except as provided in 
        subparagraphs (C) and (D),'' and inserting ``Except as provided 
        in subparagraphs (C), (D), and (G),'';
            (3) in subparagraph (D)(i)(II), by striking ``is necessary'' 
        and inserting ``is a release, disclosure, or use of technical 
        data pertaining to an interface between an item or process and 
        other items or processes necessary'';
            (4) in subparagraph (E)--
                    (A) by striking ``In the case'' and inserting 
                ``Except as provided in subparagraphs (F) and (G), in 
                the case''; and
                    (B) by striking ``negotiations). The United States 
                shall have'' and all that follows through ``such 
                negotiated rights shall'' and inserting the following: 
                ``negotiations) and shall be based on negotiations 
                between the United States and the contractor, except in 
                any case in which the Secretary of Defense determines, 
                on the basis of criteria established in the regulations, 
                that negotiations would not be practicable. The 
                establishment of such rights shall''; and
            (5) by inserting after subparagraph (E) the following new 
        subparagraphs (F) and (G):
            ``(F) Interfaces developed with mixed funding.--
        Notwithstanding subparagraph (E), the United States shall have 
        government purpose rights in technical data pertaining to an 
        interface between an item or process and other items or 
        processes that was developed in part with Federal funds and in 
        part at private expense, except in any case in which the 
        Secretary of Defense determines, on the basis of criteria 
        established in the regulations, that negotiation of different 
        rights in such technical data would be in the best interest of 
        the United States.
            ``(G) Major system interfaces developed exclusively at 
        private expense or with mixed funding.--Notwithstanding 
        subparagraphs (B) and (E), the United States shall have 
        government purpose rights in technical data pertaining to a 
        major system interface developed exclusively at private expense 
        or in part with Federal funds and in part at private expense and 
        used in a modular open system approach pursuant to section 2446a 
        of this title, except in any case in which

[[Page 130 STAT. 2267]]

        the Secretary of Defense determines that negotiation of 
        different rights in such technical data would be in the best 
        interest of the United States. Such major system interface shall 
        be identified in the contract solicitation and the contract. For 
        technical data pertaining to a major system interface developed 
        exclusively at private expense for which the United States 
        asserts government purpose rights, the Secretary of Defense 
        shall negotiate with the contractor the appropriate and 
        reasonable compensation for such technical data.''.

    (c) Amendment Relating to Deferred Ordering.--Subsection (b)(9) of 
section 2320 of such title is amended--
            (1) by striking ``at any time'' and inserting ``, until the 
        date occurring six years after acceptance of the last item 
        (other than technical data) under a contract or the date of 
        contract termination, whichever is later,'';
            (2) by striking ``or utilized in the performance of a 
        contract'' and inserting ``in the performance of the contract''; 
        and
            (3) by striking clause (ii) of subparagraph (B) and 
        inserting the following:
                          ``(ii) is described in subparagraphs 
                      (D)(i)(II), (F), and (G) of subsection (a)(2); 
                      and''.

    (d) Definitions.--Section 2320 of such title is further amended--
            (1) in subsection (f), by inserting ``Covered Government 
        Support Contractor Defined.--'' before ``In this section''; and
            (2) by adding at the end the following new subsection:

    ``(g) Additional Definitions.--In this section, the terms `major 
system component', `major system interface', and `modular open system 
approach' have the meanings provided in section 2446a of this title.''.
    (e) Amendments to Add Certain Headings for Readability.--Section 
2320(a) of such title is further amended--
            (1) in subparagraph (A) of paragraph (2), by inserting after 
        ``(A)'' the following: ``Development exclusively with federal 
        funds.--'';
            (2) in subparagraph (B) of such paragraph, by inserting 
        after ``(B)'' the following: ``Development exclusively at 
        private expense.--'';
            (3) in subparagraph (C) of such paragraph, by inserting 
        after ``(C)'' the following: ``Exception to subparagraph (b).--
        '';
            (4) in subparagraph (D) of such paragraph, by inserting 
        after ``(D)'' the following: ``Exception to subparagraph (b).--
        ''; and
            (5) in subparagraph (E) of such paragraph, by inserting 
        after ``(E)'' the following: ``Development with mixed funding.--
        ''. 

    (f) Government-industry Advisory Panel Amendments.--Section 813(b) 
of the National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114-92; 129 Stat. 892) is amended--
            (1) by adding at the end of paragraph (1) the following: 
        ``The panel shall develop recommendations for changes to 
        sections 2320 and 2321 of title 10, United States Code, and the 
        regulations implementing such sections.'';
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and

[[Page 130 STAT. 2268]]

                    (B) by inserting after subparagraph (C) the 
                following new subparagraph (D):
                    ``(D) Ensuring that the Department of Defense and 
                Department of Defense contractors have the technical 
                data rights necessary to support the modular open system 
                approach requirement set forth in section 2446a of title 
                10, United States Code, taking into consideration the 
                distinct characteristics of major system platforms, 
                major system interfaces, and major system components 
                developed exclusively with Federal funds, exclusively at 
                private expense, and with a combination of Federal funds 
                and private expense.''; and
            (3) by amending paragraph (4) to read as follows:
            ``(4) Final report.--Not later than February 1, 2017, the 
        advisory panel shall submit its final report and recommendations 
        to the Secretary of Defense and the congressional defense 
        committees. Not later than 60 days after receiving the report, 
        the Secretary shall submit any comments or recommendations to 
        the congressional defense committees.''.

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

SEC. 811. MODIFIED RESTRICTIONS ON UNDEFINITIZED CONTRACTUAL 
                        ACTIONS.

    Section 2326 of title 10, United States Code, is amended--
            (1) in subsection (e)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B);
                    (B) by inserting ``(1)'' before ``The head''; and
                    (C) by adding at the end the following new 
                paragraph:

    ``(2) If a contractor submits a qualifying proposal to definitize an 
undefinitized contractual action and the contracting officer for such 
action definitizes the contract after the end of the 180-day period 
beginning on the date on which the contractor submitted the qualifying 
proposal, the head of the agency concerned shall ensure that the profit 
allowed on the contract accurately reflects the cost risk of the 
contractor as such risk existed on the date the contractor submitted the 
qualifying proposal.'';
            (2) by redesignating subsections (f) and (g) as subsections 
        (h) and (i), respectively;
            (3) by inserting after subsection (e) the following new 
        subsections:

    ``(f) Time Limit.--No undefinitized contractual action may extend 
beyond 90 days without a written determination by the Secretary of the 
military department concerned, the head of the Defense Agency concerned, 
the commander of the combatant command concerned, or the Under Secretary 
of Defense for Acquisition, Technology, and Logistics (as applicable) 
that it is in the best interests of the military department, the Defense 
Agency, the combatant command, or the Department of Defense, 
respectively, to continue the action.
    ``(g) Foreign Military Contracts.--(1) Except as provided in 
paragraph (2), a contracting officer of the Department of Defense

[[Page 130 STAT. 2269]]

may not enter into an undefinitized contractual action for a foreign 
military sale unless the contractual action provides for agreement upon 
contractual terms, specifications, and price by the end of the 180-day 
period described in subsection (b)(1)(A).
    ``(2) The requirement under paragraph (1) may be waived in 
accordance with subsection (b)(4).''; and
            (4) in subsection (i), as redesignated by paragraph (2)--
                    (A) in paragraph (1)--
                          (i) by striking subparagraph (A); and
                          (ii) by redesignating subparagraphs (B), (C), 
                      and (D) as subparagraphs (A), (B), and (C), 
                      respectively; and
                    (B) in paragraph (2), by striking ``complete and 
                meaningful audits'' and all that follows through the 
                period and inserting ``a meaningful audit of the 
                information contained in the proposal.''.
SEC. 812. AMENDMENTS RELATING TO INVENTORY AND TRACKING OF 
                        PURCHASES OF SERVICES.

    (a) Increased Threshold.--Subsection (a) of section 2330a of title 
10, United States Code, is amended by striking ``in excess of the 
simplified acquisition threshold'' and inserting ``in excess of 
$3,000,000''.
    (b) Specification of Services.--Subsection (a) of such section is 
further amended by striking the period at the end and inserting the 
following: ``, for services in the following service acquisition 
portfolio groups:
            ``(1) Logistics management services.
            ``(2) Equipment related services.
            ``(3) Knowledge-based services.
            ``(4) Electronics and communications services.''.

    (c) Inventory Summary.--Subsection (c) of such section is amended--
            (1) by striking ``(c) Inventory.--'' and inserting ``(c) 
        Inventory Summary.--''; and
            (2) in paragraph (1), by striking ``submit to Congress an 
        annual inventory'' and all that follows through ``for or on 
        behalf'' and inserting ``prepare an annual inventory, and submit 
        to Congress a summary of the inventory, of activities performed 
        during the preceding fiscal year pursuant to staff augmentation 
        contracts on behalf''.

    (d) Elimination of Certain Requirements.--Such section is further 
amended--
            (1) by striking subsections (d), (g), and (h); and
            (2) by redesignating subsections (e), (f), (i), and (j) as 
        subsections (d), (e), (g), and (h), respectively.

    (e) Specification of Services to Be Reviewed.--Subsection (d), as so 
redesignated, of such section, is amended in paragraph (1) by inserting 
after ``responsible'' the following: ``, with particular focus and 
attention on the following categories of high-risk product service codes 
(also referred to as Federal supply codes):
                    ``(A) Special studies or analysis that is not 
                research and development.
                    ``(B) Information technology and telecommunications.
                    ``(C) Support, including professional, 
                administrative, and management.''.

[[Page 130 STAT. 2270]]

    (f) Comptroller General Report.--Such section is further amended by 
inserting after subsection (e), as so redesignated, the following new 
subsection (f):
    ``(f) Comptroller General Report.--Not later than March 31, 2018, 
the Comptroller General of the United States shall submit to the 
congressional defense committees a report on the status of the data 
collection required in subsection (a) and an assessment of the efforts 
by the Department of Defense to implement subsection (e).''.
    (g) Definitions.--Subsection (h), as so redesignated, of such 
section is amended by adding at the end the following new paragraphs:
            ``(6) The term `service acquisition portfolio groups' means 
        the groups identified in Department of Defense Instruction 
        5000.74, Defense Acquisition of Services (January 5, 2016) or 
        successor guidance.
            ``(7) The term `staff augmentation contracts' means services 
        contracts for personnel who are physically present in a 
        Government work space on a full-time or permanent part-time 
        basis, for the purpose of advising on, providing support to, or 
        assisting a Government agency in the performance of the agency's 
        missions, including authorized personal services contracts (as 
        that term is defined in section 2330a(g)(5) of this title).''.
SEC. 813. <<NOTE: 10 USC 2305 note.>>  USE OF LOWEST PRICE 
                        TECHNICALLY ACCEPTABLE SOURCE SELECTION 
                        PROCESS.

    (a) Statement of Policy.--It shall be the policy of the Department 
of Defense to avoid using lowest price technically acceptable source 
selection criteria in circumstances that would deny the Department the 
benefits of cost and technical tradeoffs in the source selection 
process.
    (b) Revision of Defense Federal Acquisition Regulation Supplement.--
Not later than 120 days after the date of the enactment of this Act, the 
Secretary of Defense shall revise the Defense Federal Acquisition 
Regulation Supplement to require that, for solicitations issued on or 
after the date that is 120 days after the date of the enactment of this 
Act, lowest price technically acceptable source selection criteria are 
used only in situations in which--
            (1) the Department of Defense is able to comprehensively and 
        clearly describe the minimum requirements expressed in terms of 
        performance objectives, measures, and standards that will be 
        used to determine acceptability of offers;
            (2) the Department of Defense would realize no, or minimal, 
        value from a contract proposal exceeding the minimum technical 
        or performance requirements set forth in the request for 
        proposal;
            (3) the proposed technical approaches will require no, or 
        minimal, subjective judgment by the source selection authority 
        as to the desirability of one offeror's proposal versus a 
        competing proposal;
            (4) the source selection authority has a high degree of 
        confidence that a review of technical proposals of offerors 
        other than the lowest bidder would not result in the 
        identification of factors that could provide value or benefit to 
        the Department;

[[Page 130 STAT. 2271]]

            (5) the contracting officer has included a justification for 
        the use of a lowest price technically acceptable evaluation 
        methodology in the contract file; and
            (6) the Department of Defense has determined that the lowest 
        price reflects full life-cycle costs, including for operations 
        and support.

    (c) Avoidance of Use of Lowest Price Technically Acceptable Source 
Selection Criteria in Certain Procurements.--To the maximum extent 
practicable, the use of lowest price technically acceptable source 
selection criteria shall be avoided in the case of a procurement that is 
predominately for the acquisition of--
            (1) information technology services, cybersecurity services, 
        systems engineering and technical assistance services, advanced 
        electronic testing, audit or audit readiness services, or other 
        knowledge-based professional services;
            (2) personal protective equipment; or
            (3) knowledge-based training or logistics services in 
        contingency operations or other operations outside the United 
        States, including in Afghanistan or Iraq.

    (d) Reporting.--Not later than December 1, 2017, and annually 
thereafter for three years, the Comptroller General of the United States 
shall submit to the congressional defense committees a report on the 
number of instances in which lowest price technically acceptable source 
selection criteria is used for a contract exceeding $10,000,000, 
including an explanation of how the situations listed in subsection (b) 
were considered in making a determination to use lowest price 
technically acceptable source selection criteria.
SEC. 814. <<NOTE: 10 USC 2302 note.>>  PROCUREMENT OF PERSONAL 
                        PROTECTIVE EQUIPMENT.

    (a) Limitation.--Not later than 90 days after the date of the 
enactment of this Act, the Defense Federal Acquisition Regulation 
Supplement shall be revised--
            (1) to prohibit the use by the Department of Defense of 
        reverse auctions or lowest price technically acceptable 
        contracting methods for the procurement of personal protective 
        equipment if the level of quality or failure of the item could 
        result in combat casualties; and
            (2) to establish a preference for the use of best value 
        contracting methods for the procurement of such equipment.

    (b) Conforming Amendment.--Section 884 of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
948; 10 U.S.C. 2302 note) is hereby repealed.
SEC. 815. AMENDMENTS RELATED TO DETECTION AND AVOIDANCE OF 
                        COUNTERFEIT ELECTRONIC PARTS.

    Section 818 of the National Defense Authorization Act for Fiscal 
Year 2012 (Public Law 112-81; 10 U.S.C. 2302 note) is amended--
            (1) in paragraph (3) of subsection (c)--
                    (A) by striking the heading and inserting 
                ``Suppliers meeting anticounterfeiting requirements.--
                '';
                    (B) in subparagraph (A)(i), by striking ``trusted 
                suppliers in accordance with regulations issued pursuant 
                to subparagraph (C) or (D) who'' and inserting 
                ``suppliers that meet anticounterfeiting requirements in 
                accordance with regulations issued pursuant to 
                subparagraph (C) or (D) and that'';

[[Page 130 STAT. 2272]]

                    (C) in subparagraphs (A)(ii) and (A)(iii), by 
                striking ``trusted suppliers'' each place it appears and 
                inserting ``suppliers that meet anticounterfeiting 
                requirements'';
                    (D) in subparagraph (C), by striking ``as trusted 
                suppliers those'' and inserting ``suppliers'';
                    (E) in subparagraph (D) in the matter preceding 
                clause (i), by striking ``trusted suppliers'' and 
                inserting ``suppliers that meet anticounterfeiting 
                requirements''; and
                    (F) in subparagraphs (D)(i) and (D)(iii), by 
                striking ``trusted'' each place it appears; and
            (2) in subsection (e)(2)(A)(v), by striking ``use of trusted 
        suppliers'' and inserting ``the use of suppliers that meet 
        applicable anticounterfeiting requirements''.
SEC. 816. AMENDMENTS TO SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

    Section 1903(a) of title 41, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting a semicolon; and
            (3) by adding after paragraph (2) the following new 
        paragraphs:
            ``(3) in support of a request from the Secretary of State or 
        the Administrator of the United States Agency for International 
        Development to facilitate the provision of international 
        disaster assistance pursuant to chapter 9 of part I of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2292 et seq.); or
            ``(4) in support of an emergency or major disaster (as those 
        terms are defined in section 102 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5122)).''.
SEC. 817. COMPLIANCE WITH DOMESTIC SOURCE REQUIREMENTS FOR 
                        FOOTWEAR FURNISHED TO ENLISTED MEMBERS OF 
                        THE ARMED FORCES UPON THEIR INITIAL ENTRY 
                        INTO THE ARMED FORCES.

    Section 418 of title 37, United States Code, is amended by adding at 
the end the following new subsection:
    ``(d)(1) In the case of athletic footwear needed by members of the 
Army, Navy, Air Force, or Marine Corps upon their initial entry into the 
armed forces, the Secretary of Defense shall furnish such footwear 
directly to the members instead of providing a cash allowance to the 
members for the purchase of such footwear.
    ``(2) In procuring athletic footwear to comply with paragraph (1), 
the Secretary of Defense shall--
            ``(A) procure athletic footwear that complies with the 
        requirements of section 2533a of title 10, without regard to the 
        applicability of any simplified acquisition threshold under 
        chapter 137 of title 10 (or any other provision of law); and
            ``(B) procure additional athletic footwear, for two years 
        following the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2017, that is necessary to 
        provide a member described in paragraph (1) with sufficient 
        choices in athletic shoes so as to minimize the incidence of 
        athletic injuries and potential unnecessary harm and risk to the 
        safety and well-being of members in initial entry training.

[[Page 130 STAT. 2273]]

    ``(3) This subsection does not prohibit the provision of a cash 
allowance to a member described in paragraph (1) for the purchase of 
athletic footwear if such footwear--
            ``(A) is medically required to meet unique physiological 
        needs of the member; and
            ``(B) cannot be met with athletic footwear that complies 
        with the requirements of this subsection.''.
SEC. 818. EXTENSION OF AUTHORITY FOR ENHANCED TRANSFER OF 
                        TECHNOLOGY DEVELOPED AT DEPARTMENT OF 
                        DEFENSE LABORATORIES.

    Section 801(e) of the National Defense Authorization Act for Fiscal 
Year 2014 (Public Law 113-66; 127 Stat. 804; 10 U.S.C. 2514 note) is 
amended by striking ``2017'' and inserting ``2021''.
SEC. 819. MODIFIED NOTIFICATION REQUIREMENT FOR EXERCISE OF WAIVER 
                        AUTHORITY TO ACQUIRE VITAL NATIONAL 
                        SECURITY CAPABILITIES.

    Subsection (d) of section 806 of the National Defense Authorization 
Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note) is 
amended to read as follows:
    ``(d) Notification Requirement.--Not later than 10 days after 
exercising the waiver authority under subsection (a), the Secretary of 
Defense shall provide a written notification to Congress providing the 
details of the waiver and the expected benefits it provides to the 
Department of Defense.''.
SEC. 820. DEFENSE COST ACCOUNTING STANDARDS.

    (a) Amendments to the Cost Accounting Standards Board.--
            (1) In general.--Section 1501 of title 41, United States 
        Code, is amended--
                    (A) in subsection (b)(1)(B)(ii), by inserting ``and, 
                if possible, is a representative of a public accounting 
                firm'' after ``systems'';
                    (B) by redesignating subsections (c) through (f) as 
                subsections (f) through (i), respectively;
                    (C) by inserting after subsection (b) the following 
                new subsections:

    ``(c) Duties.--The Board shall--
            ``(1) ensure that the cost accounting standards used by 
        Federal contractors rely, to the maximum extent practicable, on 
        commercial standards and accounting practices and systems;
            ``(2) within one year after the date of enactment of this 
        subsection, and on an ongoing basis thereafter, review any cost 
        accounting standards established under section 1502 of this 
        title and conform such standards, where practicable, to 
        Generally Accepted Accounting Principles; and
            ``(3) annually review disputes involving such standards 
        brought to the boards established in section 7105 of this title 
        or Federal courts, and consider whether greater clarity in such 
        standards could avoid such disputes.

    ``(d) Meetings.--The Board shall meet not less than once each 
quarter and shall publish in the Federal Register notice of each meeting 
and its agenda before such meeting is held.
    ``(e) Report.--The Board shall annually submit a report to the 
congressional defense committees, the Committee on Oversight and 
Government Reform of the House of Representatives, and the

[[Page 130 STAT. 2274]]

Committee on Homeland Security and Governmental Affairs of the Senate 
describing the actions taken during the prior year--
            ``(1) to conform the cost accounting standards established 
        under section 1502 of this title with Generally Accepted 
        Accounting Principles; and
            ``(2) to minimize the burden on contractors while protecting 
        the interests of the Federal Government.''; and
                    (D) by amending subsection (f) (as so redesignated) 
                to read as follows:

    ``(f) Senior Staff.--The Administrator, after consultation with the 
Board--
            ``(1) without regard to the provisions of title 5 governing 
        appointments in the competitive service--
                    ``(A) shall appoint an executive secretary; and
                    ``(B) may appoint, or detail pursuant to section 
                3341 of title 5, two additional staff members; and
            ``(2) may pay those employees without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        title 5 relating to classification and General Schedule pay 
        rates, except that those employees may not receive pay in excess 
        of the maximum rate of basic pay payable for level IV of the 
        Executive Schedule.''.
            (2) Value of contracts eligible for waiver.--Section 
        1502(b)(3)(A) of title 41, United States Code, is amended by 
        striking ``$15,000,000'' and inserting ``$100,000,000''.
            (3) Conforming amendments.--Section 1501(i) of title 41, 
        United States Code (as redesignated by paragraph (1)), is 
        amended--
                    (A) in paragraph (1), by striking ``subsection 
                (e)(1)'' and inserting ``subsection (h)(1)''; and
                    (B) in paragraph (3), by striking ``subsection 
                (e)(2)'' and inserting ``subsection (h)(2)''.

    (b) Defense Cost Accounting Standards Board.--
            (1) In general.--Chapter 7 of title 10, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 190. <<NOTE: 10 USC 190.>>  Defense Cost Accounting 
                Standards Board

    ``(a) Organization.--The Defense Cost Accounting Standards Board is 
an independent board in the Office of the Secretary of Defense.
    ``(b) Membership.--(1) The Board consists of seven members. One 
member is the Chief Financial Officer of the Department of Defense or a 
designee of the Chief Financial Officer, who serves as Chairman. The 
other six members, all of whom shall have experience in contract 
pricing, finance, or cost accounting, are as follows:
            ``(A) Three representatives of the Department of Defense 
        appointed by the Secretary of Defense; and
            ``(B) Three individuals from the private sector, each of 
        whom is appointed by the Secretary of Defense, and--
                    ``(i) one of whom is a representative of a 
                nontraditional defense contractor (as defined in section 
                2302(9) of this title); and
                    ``(ii) one of whom is a representative from a public 
                accounting firm.

[[Page 130 STAT. 2275]]

    ``(2) A member appointed under paragraph (1)(A) may not continue to 
serve after ceasing to be an officer or employee of the Department of 
Defense.
    ``(c) Duties of the Chairman.--The Chief Financial Officer of the 
Department of Defense, after consultation with the Defense Cost 
Accounting Standards Board, shall prescribe rules and procedures 
governing actions of the Board under this section.
    ``(d) Duties.--The Defense Cost Accounting Standards Board--
            ``(1) shall review cost accounting standards established 
        under section 1502 of title 41 and recommend changes to such 
        cost accounting standards to the Cost Accounting Standards Board 
        established under section 1501 of such title;
            ``(2) has exclusive authority, with respect to the 
        Department of Defense, to implement such cost accounting 
        standards to achieve uniformity and consistency in the standards 
        governing measurement, assignment, and allocation of costs to 
        contracts with the Department of Defense; and
            ``(3) shall develop standards to ensure that commercial 
        operations performed by Government employees at the Department 
        of Defense adhere to cost accounting standards (based on cost 
        accounting standards established under section 1502 of title 41 
        or Generally Accepted Accounting Principles) that inform 
        managerial decisionmaking.

    ``(e) Compensation.--(1) Members of the Defense Cost Accounting 
Standards Board who are officers or employees of the Department of 
Defense shall not receive additional compensation for services but shall 
continue to be compensated by the Department of Defense.
    ``(2) Each member of the Board appointed from the private sector 
shall receive compensation at a rate not to exceed the daily equivalent 
of the rate for level IV of the Executive Schedule for each day 
(including travel time) in which the member is engaged in the actual 
performance of duties vested in the Board.
    ``(3) While serving away from home or regular place of business, 
Board members and other individuals serving on an intermittent basis 
shall be allowed travel expenses in accordance with section 5703 of 
title 5.
    ``(f) Auditing Requirements.--(1) Notwithstanding any other 
provision of law, contractors with the Department of Defense may 
present, and the Defense Contract Audit Agency shall accept without 
performing additional audits, a summary of audit findings prepared by a 
commercial auditor if--
            ``(A) the auditor previously performed an audit of the 
        allowability, measurement, assignment to accounting periods, and 
        allocation of indirect costs of the contractor; and
            ``(B) such audit was performed using relevant commercial 
        accounting standards (such as Generally Accepted Accounting 
        Principles) and relevant commercial auditing standards 
        established by the commercial auditing industry for the relevant 
        accounting period.

    ``(2) The Defense Contract Audit Agency may audit direct costs of 
Department of Defense cost contracts and shall rely on commercial audits 
of indirect costs without performing additional audits, except that in 
the case of companies or business units that have a predominance of 
cost-type contracts as a percentage of sales, the Defense Contract Audit 
Agency may audit both direct and indirect costs.''.

[[Page 130 STAT. 2276]]

            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 7 of such title <<NOTE: 10 USC 171 
        prec.>> 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) <<NOTE: 10 USC 190 note.>>  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. <<NOTE: 10 USC 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 <<NOTE: 10 USC 2301 prec.>> is amended by adding at the end 
the following new item:

``2338. Micro-purchase threshold.''.

SEC. 822. ENHANCED COMPETITION REQUIREMENTS.

    Section 2306a of title 10, United States Code, is amended--
            (1) in subsection (a)(1)(A), by inserting ``that is only 
        expected to receive one bid'' after ``entered into using 
        procedures other than sealed-bid procedures''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)(A)(i), by striking ``price 
                competition'' and inserting ``competition that results 
                in at least two or more responsive and viable competing 
                bids''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) Determination by prime contractor.--A prime contractor 
        required to submit certified cost or pricing data under 
        subsection (a) with respect to a prime contract shall be 
        responsible for determining whether a subcontract under such 
        contract qualifies for an exception under paragraph (1)(A) from 
        such requirement.''.
SEC. 823. REVISION TO EFFECTIVE DATE OF SENIOR EXECUTIVE BENCHMARK 
                        COMPENSATION FOR ALLOWABLE COST 
                        LIMITATIONS.

    (a) Repeal of Retroactive Applicability.--Section 803(c) of the 
National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-
81; 125 Stat. 1485; 10 U.S.C. 2324 note) is amended by striking 
``amendments made by'' and all that follows and inserting ``amendments 
made by this section shall apply with respect to costs of compensation 
incurred after January 1, 2012, under contracts entered into on or after 
December 31, 2011.''.

[[Page 130 STAT. 2277]]

    (b) <<NOTE: 10 USC 2324 note.>>  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 <<NOTE: 10 USC 2351 prec.>> is amended 
        by striking the item relating to section 2372 and inserting the 
        following new item:

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


[[Page 130 STAT. 2278]]



    (b) Bid and Proposal Costs: Allowable Costs.--
            (1) In general.--Chapter 139 of title 10, United States 
        Code, is amended by inserting after section 2372 the following 
        new section:
``Sec. 2372a. <<NOTE: 10 USC 2372a.>>  Bid and proposal costs: 
                    allowable costs

    ``(a) Regulations.--The Secretary of Defense shall prescribe 
regulations governing the payment by the Department of Defense of 
expenses incurred by contractors for bid and proposal costs. Such 
regulations shall provide that expenses incurred for bid and proposal 
costs shall be reported independently from other allowable indirect 
costs.
    ``(b) Costs Allowable as Indirect Expenses.--The regulations 
prescribed under subsection (a) shall provide that bid and proposal 
costs shall be allowable as indirect expenses on covered contracts, as 
defined in section 2324(l) of this title, to the extent that those costs 
are allocable, reasonable, and not otherwise unallowable by law or under 
the Federal Acquisition Regulation.
    ``(c) Goal for Reimbursable Bid and Proposal Costs.--The Secretary 
shall establish a goal each fiscal year limiting the amount of 
reimbursable bid and proposal costs paid by the Department of Defense to 
an amount equal to not more than one percent of the total aggregate 
industry sales to the Department of Defense. To achieve such goal, the 
Secretary may not limit the payment of allowable bid and proposal costs 
for the covered year.
    ``(d) Panel.--(1) If the Department of Defense exceeds the goal 
established under subsection (c) for a fiscal year, within 180 days 
after exceeding the goal, the Secretary shall establish an advisory 
panel. The panel shall be supported by the Defense Acquisition 
University and the National Defense University, including administrative 
support.
    ``(2) The panel shall be composed of nine individuals who are 
recognized experts in acquisition and procurement policy appointed by 
the Secretary. In making such appointments, the Secretary shall ensure 
that the members of the panel reflect diverse experiences in the public 
and private sector.
    ``(3) The panel shall review laws, regulations, and practices that 
contribute to the expenses incurred by contractors for bids and 
proposals in the fiscal year concerned and recommend changes to such 
laws, regulations, and practices that may reduce expenses incurred by 
contractors for bids and proposals.
    ``(4)(A) Not later than six months after the establishment of the 
panel, the panel shall submit to the Secretary and the congressional 
defense committees an interim report on the findings of the panel.
            ``(B) Not later than one year after the establishment of the 
        panel, the panel shall submit to the Secretary and the 
        congressional defense committees a final report on the findings 
        of the panel.

    ``(5) The panel shall terminate on the day the panel submits the 
final report under paragraph (4)(B).
    ``(6) The Secretary of Defense may use amounts available in the 
Department of Defense Acquisition Workforce Development Fund established 
under section 1705 of this title to support the activities of the panel 
established under this subsection.

[[Page 130 STAT. 2279]]

    ``(e) Effective Date.--The regulations prescribed under subsection 
(a) shall apply to indirect costs incurred on or after October 1, 
2017.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 139 of such title <<NOTE: 10 USC 2351 
        prec.>> 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) <<NOTE: 10 USC 2313a note.>>  Effective date.--The 
        amendments made by this subsection shall take effect on October 
        1, 2018.
SEC. 825. EXCEPTION TO REQUIREMENT TO INCLUDE COST OR PRICE TO THE 
                        GOVERNMENT AS A FACTOR IN THE EVALUATION 
                        OF PROPOSALS FOR CERTAIN MULTIPLE-AWARD 
                        TASK OR DELIVERY ORDER CONTRACTS.

    (a) Exception to Requirement to Include Cost or Price as Factor.--
Section 2305(a)(3) of title 10, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by inserting ``(except as 
                provided in subparagraph (C))'' after ``shall''; and
                    (B) in clause (ii), by inserting ``(except as 
                provided in subparagraph (C))'' after ``shall''; and
            (2) by adding at the end the following new subparagraphs:
            ``(C) If the head of an agency issues a solicitation for 
        multiple task or delivery order contracts under section 
        2304a(d)(1)(B) of this title for the same or similar services 
        and intends to make a contract award to each qualifying 
        offeror--

[[Page 130 STAT. 2280]]

                    ``(i) cost or price to the Federal Government need 
                not, at the Government's discretion, be considered under 
                clause (ii) of subparagraph (A) as an evaluation factor 
                for the contract award; and
                    ``(ii) if, pursuant to clause (i), cost or price to 
                the Federal Government is not considered as an 
                evaluation factor for the contract award--
                          ``(I) the disclosure requirement of clause 
                      (iii) of subparagraph (A) shall not apply; and
                          ``(II) cost or price to the Federal Government 
                      shall be considered in conjunction with the 
                      issuance pursuant to section 2304c(b) of this 
                      title of a task or delivery order under any 
                      contract resulting from the solicitation.
            ``(D) In subparagraph (C), the term `qualifying offeror' 
        means an offeror that--
                    ``(i) is determined to be a responsible source;
                    ``(ii) submits a proposal that conforms to the 
                requirements of the solicitation; and
                    ``(iii) the contracting officer has no reason to 
                believe would likely offer other than fair and 
                reasonable pricing.
            ``(E) Subparagraph (C) shall not apply to multiple task or 
        delivery order contracts if the solicitation provides for sole 
        source task or delivery order contracts pursuant to section 8(a) 
        of the Small Business Act (15 U.S.C. 637(a)).''.

    (b) Amendment to Procedures Relating to Orders Under Multiple-award 
Contracts.--Section 2304c(b) of title 10, United States Code, is 
amended--
            (1) in paragraph (3), by striking ``or'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(5) the task or delivery order satisfies one of the 
        exceptions in section 2304(c) of this title to the requirement 
        to use competitive procedures.''.
SEC. 826. EXTENSION OF PROGRAM FOR COMPREHENSIVE SMALL BUSINESS 
                        CONTRACTING PLANS.

    Section 834(e) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (15 U.S.C. 637 note) is amended by striking 
``December 31, 2017'' and inserting ``December 31, 2027''.
SEC. 827. TREATMENT OF SIDE-BY-SIDE TESTING OF CERTAIN EQUIPMENT, 
                        MUNITIONS, AND TECHNOLOGIES MANUFACTURED 
                        AND DEVELOPED UNDER COOPERATIVE RESEARCH 
                        AND DEVELOPMENT AGREEMENTS AS USE OF 
                        COMPETITIVE PROCEDURES.

    Section 2350a(g) of title 10, United States Code, is amended by 
inserting after paragraph (2) the following new paragraph:
    ``(3) The use of side-by-side testing under this subsection may be 
considered to be the use of competitive procedures for purposes of 
chapter 137 of this title, when procuring items within 5 years after an 
initial determination that the items have been successfully tested and 
found to satisfy United States military requirements or to correct 
operational deficiencies.''.

[[Page 130 STAT. 2281]]

SEC. 828. DEFENSE ACQUISITION CHALLENGE PROGRAM AMENDMENTS.

    (a) Expansion of Scope To Include Systems-of-systems and 
Functions.--Paragraph (2) of subsection (a) of section 2359b of title 
10, United States Code, is amended by striking ``or system'' and all 
that follows through the end of the paragraph and inserting the 
following: ``system, or system-of-systems level of an existing 
Department of Defense acquisition program, or to address any broader 
functional challenge to Department of Defense missions that may not fall 
within an acquisition program, that would result in improvements in 
performance, affordability, manufacturability, or operational capability 
of that acquisition program or function.''.
    (b) Treatment of Challenge Proposal Procedures as Use of Competitive 
Procedures.--Such section is further amended--
            (1) by redesignating subsections (j) and (k) as subsections 
        (k) and (l), respectively; and
            (2) by inserting after subsection (i) the following new 
        subsection:

    ``(j) Treatment of Use of Certain Procedures as Use of Competitive 
Procedures.--The use of general solicitation competitive procedures 
established under subsection (c) shall be considered to be the use of 
competitive procedures for purposes of chapter 137 of this title.''.
    (c) Extension of Sunset for Pilot Program for Programs Other Than 
Major Defense Acquisition Programs.--Such section is further amended in 
paragraph (5) of subsection (l), as redesignated by subsection (b)(1) of 
this subsection, by striking ``2016'' and inserting ``2021''.
    (d) Conforming Amendments.--Such section is further amended--
            (1) in subsection (c)(3), by inserting ``or functions'' 
        after ``acquisition programs'';
            (2) in subsection (c)(4)(A)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by striking the period at the end of clause (ii) 
                and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
            ``(iii) any functional challenges of importance to 
        Department of Defense missions.'';
            (3) in subsection (c)(5), by adding at the end the following 
        new subparagraph:
                    ``(D) Whether the challenge proposal is likely to 
                result in improvements to any functional challenges of 
                importance to Department of Defense missions, and 
                whether the proposal could be implemented rapidly, at an 
                acceptable cost, and without unacceptable disruption to 
                such missions.''; and
            (4) in subsection (c)(5)(B) and in subsection (e)(1), by 
        striking ``or system'' and inserting ``system, or system-of-
        systems''.
SEC. 829. <<NOTE: 10 USC 2306 note.>>  PREFERENCE FOR FIXED-PRICE 
                        CONTRACTS.

    (a) Establishment of Preference.--Not later than 180 days after the 
date of the enactment of this Act, the Defense Federal Acquisition 
Regulation Supplement shall be revised to establish a preference for 
fixed-price contracts, including fixed-price incentive fee contracts, in 
the determination of contract type.

[[Page 130 STAT. 2282]]

    (b) Approval Requirement for Certain Cost-type Contracts.--
            (1) In general.--A contracting officer of the Department of 
        Defense may not enter into a cost-type contract described in 
        paragraph (2) unless the contract is approved by the service 
        acquisition executive of the military department concerned, the 
        head of the Defense Agency concerned, the commander of the 
        combatant command concerned, or the Under Secretary of Defense 
        for Acquisition, Technology, and Logistics (as applicable).
            (2) Covered contracts.--A contract described in this 
        paragraph is--
                    (A) a cost-type contract in excess of $50,000,000, 
                in the case of a contract entered into on or after 
                October 1, 2018, and before October 1, 2019; and
                    (B) a cost-type contract in excess of $25,000,000, 
                in the case of a contract entered into on or after 
                October 1, 2019.
SEC. 830. <<NOTE: 10 USC 2762 note.>>  REQUIREMENT TO USE FIRM 
                        FIXED-PRICE CONTRACTS FOR FOREIGN MILITARY 
                        SALES.

    (a) Requirement.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe 
regulations to require the use of firm fixed-price contracts for foreign 
military sales.
    (b) Exceptions.--The regulations prescribed pursuant to subsection 
(a) shall include exceptions that may be exercised if the foreign 
country that is the counterparty to a foreign military sale--
            (1) has established in writing a preference for a different 
        contract type; or
            (2) requests in writing that a different contract type be 
        used for a specific foreign military sale.

    (c) Waiver Authority.--The regulations prescribed pursuant to 
subsection (a) shall include a waiver that may be exercised by the 
Secretary of Defense or his designee if the Secretary or his designee 
determines on a case-by-case basis that a different contract type is in 
the best interest of the United States and American taxpayers.
    (d) Pilot Program for Acceleration of Foreign Military Sales.--
            (1) In general.--The Secretary of Defense shall establish a 
        pilot program to reform and accelerate the contracting and 
        pricing processes associated with full rate production of major 
        weapon systems for no more than 10 foreign military sales 
        contracts by--
                    (A) basing price reasonableness determinations on 
                actual cost and pricing data for purchases of the same 
                product for the Department of Defense; and
                    (B) reducing the cost and pricing data to be 
                submitted in accordance with section 2306a of title 10, 
                United States Code.
            (2) Expiration of authority.--Authority for the pilot 
        program under this subsection expires on January 1, 2020.
SEC. 831. PREFERENCE FOR PERFORMANCE-BASED CONTRACT PAYMENTS.

    (a) In General.--Section 2307(b) of title 10, United States Code, is 
amended--

[[Page 130 STAT. 2283]]

            (1) in the subsection heading, by inserting ``Preference 
        for'' before ``Performance-based'';
            (2) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively;
            (3) by striking ``Wherever practicable, payment under 
        subsection (a) shall be made'' and inserting ``(1) Whenever 
        practicable, payments under subsection (a) shall be made using 
        performance-based payments''; and
            (4) by adding at the end the following new paragraphs:

    ``(2) Performance-based payments shall not be conditioned upon costs 
incurred in contract performance but on the achievement of performance 
outcomes listed in paragraph (1).
    ``(3) The Secretary of Defense shall ensure that nontraditional 
defense contractors and other private sector companies are eligible for 
performance-based payments, consistent with best commercial practices.
    ``(4)(A) In order to receive performance-based payments, a 
contractor's accounting system shall be in compliance with Generally 
Accepted Accounting Principles, and there shall be no requirement for a 
contractor to develop Government-unique accounting systems or practices 
as a prerequisite for agreeing to receive performance-based payments.
    ``(B) Nothing in this section shall be construed to grant the 
Defense Contract Audit Agency the authority to audit compliance with 
Generally Accepted Accounting Principles.''.
    (b) <<NOTE: 10 USC 2307 note.>>  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. <<NOTE: 10 USC 1746 note.>>  CONTRACTOR INCENTIVES TO 
                        ACHIEVE SAVINGS AND IMPROVE MISSION 
                        PERFORMANCE.

    Not later than 180 days after the date of the enactment of this Act, 
the Defense Acquisition University shall develop and implement a 
training program for Department of Defense acquisition personnel on 
fixed-priced incentive fee contracts, public-private partnerships, 
performance-based contracting, and other authorities in law and 
regulation designed to give incentives to contractors to achieve long-
term savings and improve administrative practices and mission 
performance.
SEC. 833. SUNSET AND REPEAL OF CERTAIN CONTRACTING PROVISIONS.

    (a) Sunsets.--
            (1) Plantations and farms: operation, maintenance, and 
        improvement.--Section 2421 of title 10, United States Code, is 
        amended by adding at the end the following new subsection:

    ``(e) Sunset.--The authority under this section shall terminate on 
September 30, 2018.''.
            (2) Requirement to establish cost, performance, and schedule 
        goals for major defense acquisition programs and each phase of 
        related acquisition cycles.--Section 2220 of title 10, United 
        States Code, is amended by adding at the end the following new 
        subsection:

    ``(c) Sunset.--The authority under this section shall terminate on 
September 30, 2018.''.

[[Page 130 STAT. 2284]]

    (b) Repeals.--
            (1) Limitation on use of operation and maintenance funds for 
        purchase of investment items.--
                    (A) In general.--Section 2245a of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of subchapter I of chapter 134 <<NOTE: 10 
                USC 2241 prec.>> 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 <<NOTE: 10 
                USC 2201 prec.>> 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 <<NOTE: 10 
                USC 2375 prec.>> is amended by striking the item 
                relating to section 2378.

[[Page 130 STAT. 2285]]

            (4) Limitation on procurement of table and kitchen equipment 
        for officers' quarters.--
                    (A) In general.--Section 2387 of title 10, United 
                States Code, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 141 of such title <<NOTE: 10 
                USC 2381 prec.>> 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 <<NOTE: 10 
                USC 2301 prec.>> is amended by striking the item 
                relating to section 2302c.
SEC. 834. <<NOTE: 10 USC 1701a note.>>  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. <<NOTE: 10 USC 2302 note.>>  CONTRACT CLOSEOUT 
                        AUTHORITY.

    (a) Authority.--The Secretary of Defense may close out a contract or 
group of contracts as described in subsection (b) through the issuance 
of one or more modifications to such contracts without completing a 
reconciliation audit or other corrective action. To accomplish closeout 
of such contracts--
            (1) remaining contract balances may be offset with balances 
        in other contract line items within a contract regardless of

[[Page 130 STAT. 2286]]

        the year or type of appropriation obligated to fund each 
        contract line item and regardless of whether the appropriation 
        for such contract line item has closed; and
            (2) remaining contract balances may be offset with balances 
        on other contracts regardless of the year or type of 
        appropriation obligated to fund each contract and regardless of 
        whether the appropriation has closed.

    (b) Covered Contracts.--This section covers any contract or group of 
contracts between the Department of Defense and a defense contractor, 
each one of which--
            (1) was entered into prior to fiscal year 2000;
            (2) has no further supplies or services deliverables due 
        under the terms and conditions of the contract; and
            (3) is determined by the Secretary of Defense to be not 
        otherwise reconcilable because--
                    (A) the records have been destroyed or lost; or
                    (B) the records are available but the Secretary of 
                Defense has determined that the time or effort required 
                to determine the exact amount owed to the United States 
                Government or amount owed to the contractor is 
                disproportionate to the amount at issue.

    (c) Negotiated Settlement Authority.--Any contract or group of 
contracts covered by this section may be closed out through a negotiated 
settlement with the contractor.
    (d) Waiver Authority.--
            (1) In general.--The Secretary of Defense is authorized to 
        waive any provision of acquisition law or regulation to carry 
        out the authority under subsection (a).
            (2) Notification requirement.--The Secretary of Defense 
        shall notify the congressional defense committees not later than 
        10 days after exercising the authority under subsection (d). The 
        notice shall include an identification of each provision of law 
        or regulation waived.

    (e) Adjustment and Closure of Records.--After closeout of any 
contract described in subsection (b) using the authority under this 
section, the payment or accounting offices concerned may adjust and 
close any open finance and accounting records relating to the contract.
    (f) No Liability.--No liability shall attach to any accounting, 
certifying, or payment official, or any contracting officer, for any 
adjustments or closeout made pursuant to the authority under this 
section.
    (g) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of the authority under this section.
SEC. 837. CLOSEOUT OF OLD DEPARTMENT OF THE NAVY CONTRACTS.

    (a) Authority.--The Secretary of the Navy may close out contracts 
described in subsection (b) through the issuance of one or more 
modifications to such contracts without completing further 
reconciliation audits or corrective actions other than those described 
in this section. To accomplish closeout of such contracts--
            (1) remaining contract balances may be offset with balances 
        in other contract line items within a contract regardless of the 
        year or type of appropriation obligated to fund each contract 
        line item and regardless of whether the appropriation for such 
        contract line item has closed; and

[[Page 130 STAT. 2287]]

            (2) remaining contract balances may be offset with balances 
        on other contracts regardless of the year or type of 
        appropriation obligated to fund each contract and regardless of 
        whether the appropriation has closed.

    (b) Contracts Covered.--The contracts covered by this section are a 
group of contracts that are with one contractor and identified by the 
Secretary, each one of which is a contract--
            (1) to design, construct, repair, or support the 
        construction or repair of Navy submarines that--
                    (A) was entered into between fiscal years 1974 and 
                1998; and
                    (B) has no further supply or services deliverables 
                due under the terms and conditions of the contract;
            (2) with respect to which the Secretary of the Navy has 
        established the total final contract value; and
            (3) with respect to which the Secretary of the Navy has 
        determined that the final allowable cost may have a negative or 
        positive unliquidated obligation balance for which it would be 
        difficult to determine the year or type of appropriation 
        because--
                    (A) the records for the contract have been destroyed 
                or lost; or
                    (B) the records for the contract are available but 
                the contracting officer, in collaboration with the 
                certifying official, has determined that a discrepancy 
                is of such a minimal value that the time and effort 
                required to determine the cause of an out-of-balance 
                condition is disproportionate to the amount of the 
                discrepancy.

    (c) Closeout Terms.--The contracts described in subsection (b) may 
be closed out--
            (1) upon receipt of $581,803 from the contractor to be 
        deposited into the Treasury as miscellaneous receipts;
            (2) without seeking further amounts from the contractor; and
            (3) without payment to the contractor of any amounts that 
        may be due under any such contracts.

    (d) Waiver Authority.--
            (1) In general.--The Secretary of the Navy is authorized to 
        waive any provision of acquisition law or regulation to carry 
        out the authority under subsection (a).
            (2) Notification requirement.--The Secretary of the Navy 
        shall notify the congressional defense committees not later than 
        10 days after exercising the authority under paragraph (1). The 
        notice shall include an identification of each provision of law 
        or regulation waived.

    (e) Adjustment and Closure of Records.--After closeout of any 
contract described in subsection (b) using the authority under this 
section, the payment or accounting offices concerned may adjust and 
close any open finance and accounting records relating to the contract.
    (f) No Liability.--No liability shall attach to any accounting, 
certifying, or payment official or contracting officer for any 
adjustments or closeout made pursuant to the authority under this 
section.
    (g) Expiration of Authority.--The authority under this section shall 
expire upon receipt of the funds identified in subsection (c)(1).

[[Page 130 STAT. 2288]]

  Subtitle D--Provisions Relating to Major Defense Acquisition Programs

SEC. 841. CHANGE IN DATE OF SUBMISSION TO CONGRESS OF SELECTED 
                        ACQUISITION REPORTS.

    Section 2432(f) of title 10, United States Code, is amended by 
striking ``45'' the first place it occurs and inserting ``30''.
SEC. 842. AMENDMENTS RELATING TO INDEPENDENT COST ESTIMATION AND 
                        COST ANALYSIS.

    (a) Amendments.--Section 2334 of title 10, United States Code, is 
amended--
            (1) in subsection (a)(3), by striking ``selection of 
        confidence levels'' both places it appears and inserting 
        ``discussion of risk'';
            (2) in subsection (a)(6)--
                    (A) by inserting ``or approve'' after ``conduct'';
                    (B) by striking ``major defense acquisition 
                programs'' and all that follows through ``Authority--'' 
                and inserting ``all major defense acquisition programs 
                and major subprograms--''; and
                    (C) in subparagraph (B), by striking ``or upon the 
                request'' and all that follows through the semicolon at 
                the end and inserting ``, upon the request of the Under 
                Secretary of Defense for Acquisition, Technology, and 
                Logistics, or upon the request of the milestone decision 
                authority'';
            (3) by redesignating subsections (b), (c), (d), (e), and (f) 
        as subsections (c), (d), (e), (f), and (h), respectively;
            (4) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Independent Cost Estimate Required Before Approval.--(1) A 
milestone decision authority may not approve entering a milestone phase 
of a major defense acquisition program or major subprogram unless an 
independent cost estimate has been conducted or approved by the Director 
of Cost Assessment and Program Evaluation and considered by the 
milestone decision authority that--
            ``(A) for the technology maturation and risk reduction 
        phase, includes the identification and sensitivity analysis of 
        key cost drivers that may affect life-cycle costs of the program 
        or subprogram; and
            ``(B) for the engineering and manufacturing development 
        phase, or production and deployment phase, includes a cost 
        estimate of the full life-cycle cost of the program or 
        subprogram.

    ``(2) The regulations governing the content and submission of 
independent cost estimates required by subsection (a) shall require that 
the independent cost estimate of the full life-cycle cost of a program 
or subprogram include--
            ``(A) all costs of development, procurement, military 
        construction, operations and support, and trained manpower to 
        operate, maintain, and support the program or subprogram upon 
        full operational deployment, without regard to funding source or 
        management control; and
            ``(B) an analysis to support decisionmaking that identifies 
        and evaluates alternative courses of action that may reduce

[[Page 130 STAT. 2289]]

        cost and risk, and result in more affordable programs and less 
        costly systems.'';
            (5) in subsection (d), as so redesignated, in paragraph (3), 
        by striking ``confidence level'' and inserting ``discussion of 
        risk'';
            (6) in subsection (e), as so redesignated--
                    (A) by amending the subsection heading to read as 
                follows: ``Discussion of Risk in Cost Estimates.--'';
                    (B) by amending paragraph (1) to read as follows:
            ``(1) issue guidance requiring a discussion of risk, the 
        potential impacts of risk on program costs, and approaches to 
        mitigate risk in cost estimates for major defense acquisition 
        programs and major subprograms;'';
                    (C) in paragraph (2)--
                          (i) by striking ``such confidence level 
                      provides'' and inserting ``cost estimates are 
                      developed, to the extent practicable, based on 
                      historical actual cost information that is based 
                      on demonstrated contractor and Government 
                      performance and that such estimates provide''; and
                          (ii) by inserting ``or subprogram'' after 
                      ``the program''; and
                    (D) in paragraph (3), by striking ``disclosure 
                required by paragraph (1)'' and inserting ``information 
                required in the guidance under paragraph (1)''; and
            (7) by inserting after subsection (f), as so redesignated, 
        the following new subsection:

    ``(g) Guidelines and Collection of Cost Data.--(1) The Director of 
Cost Assessment and Program Evaluation shall, in consultation with the 
Under Secretary of Defense for Acquisition, Technology, and Logistics, 
develop policies, procedures, guidance, and a collection method to 
ensure that quality acquisition cost data are collected to facilitate 
cost estimation and comparison across acquisition programs.
    ``(2) The program manager and contracting officer for each 
acquisition program in an amount greater than $100,000,000, in 
consultation with the cost estimating component of the relevant military 
department or Defense Agency, shall ensure that cost data are collected 
in accordance with the requirements of paragraph (1).
    ``(3) The requirement under paragraph (1) may be waived only by the 
Director of Cost Assessment and Program Evaluation.''.
    (b) Conforming Amendments to Add Subprograms.--Section 2334 of such 
title is further amended--
            (1) in subsection (a)(2), by inserting ``or major 
        subprogram'' before ``under chapter 144'';
            (2) in paragraphs (3), (4), and (5) of subsection (a) and in 
        subsection (c)(1) (as redesignated by subsection (a) of this 
        section), by striking ``major defense acquisition programs and 
        major automated information system programs'' and inserting 
        ``major defense acquisition programs and major subprograms'' 
        each place it appears;
            (3) in paragraphs (1) and (2) of subsection (d) (as so 
        redesignated), and in subsection (f)(4) (as so redesignated), by 
        striking ``major defense acquisition program or major automated 
        information system program'' and inserting ``major defense 
        acquisition program or major subprogram'' each place it appears;

[[Page 130 STAT. 2290]]

            (4) in subsection (d)(4) (as so redesignated), by inserting 
        before the period ``or major subprogram'';
            (5) in subsection (e)(3)(B) (as so redesignated), by 
        inserting ``or major subprogram'' after ``major defense 
        acquisition program''; and
            (6) in subsection (f)(3) (as so redesignated), by striking 
        ``major defense acquisition program and major automated 
        information system program'' and inserting ``major defense 
        acquisition program and major subprogram''.

    (c) Repeal.--Chapter 144 of such title is amended--
            (1) by striking section 2434; and
            (2) <<NOTE: 10 USC 2430 prec.>>  in the table of sections at 
        the beginning of such chapter, by striking the item relating to 
        such section.
SEC. 843. REVISIONS TO MILESTONE B DETERMINATIONS.

    Section 2366b(a)(3) of title 10, United States Code, is amended--
            (1) in subparagraph (B), by striking ``acquisition cost in'' 
        and all that follows through the semicolon, and inserting 
        ``life-cycle cost;''; and
            (2) in subparagraph (D), by striking ``funding is'' and all 
        that follows through ``made,'' and inserting ``funding is 
        expected to be available to execute the product development and 
        production plan for the program,''.
SEC. 844. REVIEW AND REPORT ON SUSTAINMENT PLANNING IN THE 
                        ACQUISITION PROCESS.

    (a) Requirement for Review.--The Secretary of Defense shall conduct 
a review of the extent to which sustainment matters are considered in 
decisions related to the requirements, research and development, 
acquisition, cost estimating, and programming and budgeting processes 
for major defense acquisition programs. The review shall include the 
following:
            (1) A determination of whether information related to the 
        operation and sustainment of major defense acquisition programs, 
        including cost data and intellectual property requirements, is 
        available to inform decisions made during those processes.
            (2) If such information exists, an evaluation of the 
        completeness, timeliness, quality, and suitability of the 
        information for aiding in decisions made during those processes.
            (3) A determination of whether information related to the 
        operation and sustainment of existing major weapon systems is 
        used to forecast the operation and sustainment needs of major 
        weapon systems proposed for or under development.
            (4) A description of the potential benefits from improved 
        completeness, timeliness, quality, and suitability of data on 
        operation and support costs and increased consideration of such 
        data.
            (5) Recommendations for improving access to, analyses of, 
        and consideration of operation and support cost data.
            (6) An assessment of product support strategies for major 
        weapon systems required by section 2337 of title 10, United 
        States Code, or other similar life-cycle sustainment strategies, 
        including an evaluation of--
                    (A) the stage at which such strategies are developed 
                during the life of a major weapon system;

[[Page 130 STAT. 2291]]

                    (B) the content and completeness of such strategies, 
                including whether such strategies address--
                          (i) all aspects of total life-cycle management 
                      of a major weapon system, including product 
                      support, logistics, product support engineering, 
                      supply chain integration, maintenance, and 
                      software sustainment; and
                          (ii) the capabilities, capacity, and resource 
                      constraints of the organic industrial base and the 
                      materiel commands of the military department 
                      concerned;
                    (C) the extent to which such strategies or their 
                elements are or should be incorporated into the 
                acquisition strategy required by section 2431a of title 
                10, United States Code;
                    (D) the extent to which such strategies influence 
                the planning for major defense acquisition programs; and
                    (E) the extent to which such strategies influence 
                decisions related to the life-cycle management and 
                product support of major weapon systems.
            (7) An assessment of how effectively the military 
        departments consider sustainment matters at key decision points 
        for acquisition and life-cycle management in accordance with the 
        requirements of sections 2431a, 2366a, 2366b, and 2337 of title 
        10, United States Code, and section 832 of the National Defense 
        Authorization Act for Fiscal Year 2012 (Public Law 112-81; 10 
        U.S.C. 2430 note).
            (8) Recommendations for improving the consideration of 
        sustainment during the requirements, acquisition, cost 
        estima