Text: S.1519 — 115th Congress (2017-2018)All Information (Except Text)

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Placed on Calendar Senate (07/10/2017)

Calendar No. 165

115th CONGRESS
1st Session
S. 1519

[Report No. 115–125]


To authorize appropriations for fiscal year 2018 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.


IN THE SENATE OF THE UNITED STATES

July 10, 2017

Mr. McCain, from the Committee on Armed Services, reported the following original bill; which was read twice and placed on the calendar


A BILL

To authorize appropriations for fiscal year 2018 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “National Defense Authorization Act for Fiscal Year 2018”.

SEC. 2. Organization of Act into divisions; table of contents.

(a) Divisions.—This Act is organized into four 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.

(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. Transfer of excess High Mobility Multipurpose Wheeled Vehicles to foreign countries.

Sec. 112. Limitation on availability of funds for Army Air-Land Mobile Tactical Communications and Data Network, including Warfighter Information Network-Tactical (WIN-T).

Subtitle C—Navy programs


Sec. 121. Multiyear procurement authority for Virginia class submarine program.

Sec. 122. Arleigh Burke class destroyers.

Sec. 123. Multiyear procurement authority for V–22 joint aircraft program.

Sec. 124. Design and construction of amphibious ship replacement designated LX(R) or amphibious transport dock designated LPD–30.

Sec. 125. Modification of cost limitation baseline for CVN–78 class aircraft carrier program.

Sec. 126. Extension of limitation on use of sole-source shipbuilding contracts for certain vessels.

Subtitle D—Air Force Programs


Sec. 131. Inventory requirement for Air Force fighter aircraft.

Sec. 132. Comptroller General review of total force integration initiatives for reserve component rescue squadrons.

Subtitle E—Defense-wide, Joint, and multiservice matters


Sec. 141. F–35 economic order quantity contracting authority.

Sec. 142. Authority for Explosive Ordnance Disposal units to acquire new or emerging technologies and capabilities.

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. Mechanisms for expedited access to technical talent and expertise at academic institutions to support Department of Defense missions.

Sec. 212. Codification and enhancement of authorities to provide funds for defense laboratories for research and development of technologies for military missions.

Sec. 213. Modification of laboratory quality enhancement program.

Sec. 214. Prizes for advanced technology achievements.

Sec. 215. Expansion of definition of competitive procedures to include competitive selection for award of research and development proposals.

Sec. 216. Inclusion of modeling and simulation in test and evaluation activities for purposes of planning and budget certification.

Sec. 217. Differentiation of research and development activities from service activities.

Sec. 218. Designation of additional Department of Defense science and technology reinvention laboratories.

Sec. 219. Department of Defense directed energy weapon system prototyping and demonstration program.

Sec. 220. Authority for the Under Secretary of Defense for Research and Engineering to promote innovation in the Department of Defense.

Sec. 221. Limitation on availability of funds for F–35 Joint Strike Fighter Follow-On Modernization.

Sec. 222. Improvement of update process for populating mission data files used in advanced combat aircraft.

Subtitle C—Reports and other matters


Sec. 231. Competitive acquisition plan for low probability of detection data link networks.

Sec. 232. Clarification of selection dates for pilot program for the enhancement of the research, development, test, and evaluation centers of the Department of Defense.

Sec. 233. Requirement for a plan to build a prototype for a new ground combat vehicle for the Army.

Sec. 234. Plan for successfully fielding the Integrated Air and Missile Defense Battle Command System.

Sec. 235. Sense of Congress on hypersonic weapons.

TITLE III—OPERATION AND MAINTENANCE

Subtitle A—Authorization of appropriations


Sec. 301. Authorization of appropriations.

Subtitle B—Logistics and sustainment


Sec. 311. Sentinel Landscapes Partnership.

Sec. 312. Increased percentage of sustainment funds authorized for realignment to restoration and modernization at each installation.

Subtitle C—Reports


Sec. 321. Plan for modernized, dedicated Department of the Navy adversary air training enterprise.

Subtitle D—Other matters


Sec. 331. Defense Siting Clearinghouse.

Sec. 332. Temporary installation reutilization authority for arsenals, depots, and plants.

Sec. 333. Pilot program for operation and maintenance budget presentation.

Sec. 334. Servicewomen's commemorative partnerships.

Sec. 335. Authority for agreements to reimburse States for costs of suppressing wildfires on State lands caused by Department of Defense activities under leases and other grants of access to State lands.

Sec. 336. Repurposing and reuse of surplus Army firearms.

Sec. 337. Department of the Navy marksmanship awards.

Subtitle E—Energy and Environment


Sec. 341. Authority to carry out environmental restoration activities at National Guard and Reserve locations.

Sec. 342. Special considerations for energy performance goals.

Sec. 343. Centers for Disease Control study on health implications of per- and polyfluoroalkyl substances contamination in drinking water.

Sec. 344. Environmental oversight and remediation at Red Hill Bulk Fuel Storage Facility.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces


Sec. 401. End strengths for active forces.

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 2018 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. Number of members of the National Guard on full-time duty in support of the reserves within the National Guard Bureau.

Subtitle C—Authorization of Appropriations


Sec. 421. Military personnel.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy


Sec. 501. Clarification of baselines for authorized numbers of general and flag officers on active duty and in joint duty assignments.

Sec. 502. Authority of promotion boards to recommend officers of particular merit be placed at the top of the promotion list.

Sec. 503. Clarification to exception for removal of officers from list of officers recommended for promotion after 18 months without appointment.

Sec. 504. Flexibility in promotion of officers to positions of Staff Judge Advocate to the Commandant of the Marine Corps and Deputy Judge Advocate General of the Navy.

Sec. 505. Repeal of requirement for specification of number of officers who may be recommended for early retirement by a Selective Early Retirement Board.

Sec. 506. Extension of service-in-grade waiver authority for voluntary retirement of certain general and flag officers for purposes of enhanced flexibility in officer personnel management.

Sec. 507. Inclusion of Principal Military Deputy to the Assistant Secretary of the Army for Acquisition, Technology, and Logistics among officers subject to repeal of statutory specification of general officer grade.

Sec. 508. Clarification of effect of repeal of statutory specification of general or flag officer grade for various positions in the Armed Forces.

Sec. 509. Grandfathering of retired grade of Assistant Judge Advocates General of the Navy as of repeal of statutory specification of general and flag officers grades in the Armed Forces.

Sec. 510. Service credit for cyberspace experience or advanced education upon original appointment as a commissioned officer.

Sec. 510A. Authority for officers to opt-out of promotion board consideration.

Sec. 510B. Reauthorization of authority to order retired members to active duty in high-demand, low-density assignments.

Subtitle B—Reserve Component Management


Sec. 511. Consolidation of authorities to order members of the reserve components of the Armed Forces to perform duty.

Sec. 512. Establishment of Office of Complex Investigations within the National Guard Bureau.

Subtitle C—General Service Authorities


Sec. 516. Report on policies for regular and reserve officer career management.

Sec. 517. Responsibility of Chiefs of Staff of the Armed Forces for standards and qualifications for military specialties within the Armed Forces.

Sec. 518. Confidential review of characterization of terms of discharge of members of the Armed Forces who are survivors of sexual assault.

Sec. 519. Improvements to certain authorities and procedures of discharge review boards.

Sec. 520. Public availability of information related to disposition of claims regarding discharge or release of members of the Armed Forces when the claims involve sexual assault.

Subtitle D—Military Justice Matters


Sec. 521. Revision to Manual for Courts-Martial with respect to dissemination of visual depictions of private areas or sexually explicit conduct without the consent of the person depicted.

Sec. 522. Technical and conforming amendments in connection with reform of the Uniform Code of Military Justice.

Sec. 523. Priority of review by Court of Appeals for the Armed Forces of decisions of Courts of Criminal Appeals on petitions for enforcement of victims' rights.

Sec. 524. Assistance of defense counsel in additional post-trial matters for accused convicted by court-martial.

Sec. 525. Enumeration of additional limitations on acceptance of plea agreements by military judges of general or special courts-martial.

Sec. 526. Additional proceedings by Courts of Criminal Appeals by order of United States Court of Appeals for the Armed Forces.

Sec. 527. Clarification of applicability and effective dates for statute of limitations amendments in connection with Uniform Code of Military Justice Reform.

Sec. 528. Modification of year of initial review by Military Justice Review Panel of Uniform Code of Military Justice reform amendments.

Sec. 529. Clarification of applicability of certain provisions of law to civilian judges of the United States Court of Military Commission Review.

Sec. 530. Enhancement of effective prosecution and defense in courts-martial and related matters.

Sec. 531. Court of Appeals for the Armed Forces jurisdiction to review interlocutory appeals of decisions on certain petitions for writs of mandamus.

Sec. 532. Punitive article on wrongful broadcast or distribution of intimate visual images or visual images of sexually explicit conduct under the Uniform Code of Military Justice.

Subtitle E—Member Education, Training, Transition, and Resilience


Sec. 541. Ready, Relevant Learning initiative of the Navy.

Sec. 542. Element in preseparation counseling for members of the Armed Forces on assistance and support services for caregivers of certain veterans through the Department of Veterans Affairs.

Sec. 543. Discharge in the Selected Reserve of the commissioned service obligation of military service academy graduates who participate in professional athletics.

Sec. 544. Pilot programs on appointment in the excepted service in the Department of Defense of physically disqualified former cadets and midshipmen.

Sec. 545. Limitation on availability of funds for attendance of Air Force enlisted personnel at Air Force officer professional military education in-residence courses.

Sec. 546. Pilot program on integration of Department of Defense and non-Federal efforts for civilian employment of members of the Armed Forces following transition from active duty to civilian life.

Sec. 547. Two-year extension of suicide prevention and resilience program for the National Guard and Reserves.

Sec. 548. Sexual assault prevention and response training for all individuals enlisted in the Armed Forces under a delayed entry program.

Sec. 549. Use of assistance under Department of Defense Tuition Assistance Program for non-traditional education to develop cybersecurity and computer coding skills.

Subtitle F—Defense Dependents' Education and Military Family Readiness Matters

PART I—DEFENSE DEPENDENTS' EDUCATION MATTERS


Sec. 551. Impact aid for children with severe disabilities.

Sec. 552. Continuation of authority to assist local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

Sec. 553. One-year extension of authorities relating to the transition and support of military dependent students to local educational agencies.

PART II—MILITARY FAMILY READINESS MATTERS


Sec. 556. Housing treatment for certain members of the Armed Forces, and their spouses and other dependents, undergoing a permanent change of station within the United States.

Sec. 557. Direct hire authority for Department of Defense for childcare services providers for Department child development centers.

Sec. 558. Report on expanding and contracting for childcare services of the Department of Defense.

Sec. 559. Report on review of General Schedule pay grades of childcare services providers of the Department of Defense.

Sec. 560. Pilot program on public-private partnerships for telework facilities on military installations outside the United States.

Sec. 561. Report on mechanisms to facilitate the obtaining by military spouses of professional licenses or credentials in other States.

Sec. 562. Additional military childcare matters.

Subtitle G—Decorations and Awards


Sec. 571. Authority of Secretary of the Army to award the Personnel Protection Equipment award of the Army to former members of the Army.

Sec. 572. Authorization for award of Distinguished Service Cross to Specialist Frank M. Crary for acts of valor in Vietnam.

Subtitle H—Other Matters


Sec. 581. Modification of submittal date of Comptroller General of the United States report on integrity of the Department of Defense whistleblower program.

Sec. 582. Report to Congress on accompanied and unaccompanied tours of duty in remote locations with high family support costs.

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A—Pay and Allowances


Sec. 601. Fiscal year 2018 increase in military basic pay.

Sec. 602. Extension of authority to provide temporary increase in rates of basic allowance for housing under certain circumstances.

Sec. 603. Adjustment to basic allowance for housing at with dependents rate of certain members of the uniformed services.

Sec. 604. Modification of authority of President to determine alternative pay adjustment in annual basic pay of members of the uniformed services.

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 bonus matters.

Sec. 617. Special aviation incentive pay and bonus authorities for enlisted members who pilot remotely piloted aircraft.

Sec. 618. Technical and conforming amendments relating to 2008 consolidation of special pay authorities.

Subtitle C—Disability Pay, Retired Pay, and Survivor Benefits

PART I—AMENDMENTS IN CONNECTION WITH RETIRED PAY REFORM


Sec. 631. Adjustments to Survivor Benefit Plan for members electing lump sum payments of retired pay under the modernized retirement system for members of the uniformed services.

Sec. 632. Technical correction regarding election to participate in modernized retirement system for reserve component members experiencing a break in service.

PART II—OTHER MATTERS


Sec. 636. Authority for the Secretaries of the military departments to provide for care of remains of those who die on active duty and are interred in a foreign cemetery.

Sec. 637. Technical corrections to use of member's current pay grade and years of service in a division of property involving disposable retired pay.

Sec. 638. Permanent extension and cost-of-living adjustments of special survivor indemnity allowances under the Survivor Benefit Plan.

Subtitle D—Other Matters


Sec. 651. Construction of domestic source requirement for footwear furnished to enlisted members of the Armed Forces on initial entry into the Armed Forces.

Sec. 652. Inclusion of Department of Agriculture in Transition Assistance Program.

Sec. 653. Review and update of regulations governing debt collectors interactions with unit commanders.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—TRICARE and Other Health Care Benefits


Sec. 701. TRICARE Advantage demonstration program.

Sec. 702. Continued access to medical care at facilities of the uniformed services for certain members of the reserve components.

Sec. 703. Modification of eligibility for TRICARE Reserve Select and TRICARE Retired Reserve of certain members of the reserve components.

Sec. 704. Expedited evaluation and treatment for prenatal surgery under the TRICARE program.

Sec. 705. Specification that individuals under the age of 21 are eligible for hospice care services under the TRICARE program.

Sec. 706. Modifications of cost-sharing requirements for the TRICARE Pharmacy Benefits Program and treatment of certain pharmaceutical agents.

Sec. 707. Consolidation of cost-sharing requirements under TRICARE Select and TRICARE Prime.

Sec. 708. TRICARE technical amendments.

Sec. 709. Contraception coverage parity under the TRICARE program.

Subtitle B—Health Care Administration


Sec. 721. Modification of priority for evaluation and treatment of individuals at military treatment facilities.

Sec. 722. Selection of directors of military treatment facilities and tours of duty of such directors.

Sec. 723. Clarification of administration of military medical treatment facilities.

Sec. 724. Modification of execution of TRICARE contracting responsibilities.

Sec. 725. Pilot program on establishment of integrated health care delivery systems.

Subtitle C—Reports and Other Matters


Sec. 731. Extension of authority for Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund.

Sec. 732. Additional emergency uses for medical products to reduce deaths and severity of injuries caused by agents of war.

Sec. 733. Prohibition on conduct of certain medical research and development projects.

Sec. 734. Modification of determination of average wait times at urgent care clinics and pharmacies at military medical treatment facilities under pilot program.

Sec. 735. Report on plan to improve pediatric care and related services for children of members of the Armed Forces.

Sec. 736. Inclusion of gambling disorder in health assessments and related research efforts of the Department of Defense.

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

Subtitle A—Acquisition policy and management


Sec. 801. Repeal of temporary suspension of public-private competitions for conversion of Department of Defense functions to performance by contractors.

Sec. 802. Technical and conforming amendments related to program management provisions.

Sec. 803. Should-cost management.

Sec. 804. Clarification of purpose of Defense acquisition.

Sec. 805. Defense policy advisory committee on technology.

Sec. 806. Report on extension of development, acquisition, and sustainment authorities of the military departments to the United States Special Operations Command.

Subtitle B—Amendments to general contracting authorities, procedures, and limitations


Sec. 811. Waiver authority for purposes of expanding competition.

Sec. 812. Increased simplified acquisition threshold applicable to Department of Defense procurements.

Sec. 813. Increased threshold for cost or pricing data and truth in negotiations requirements.

Sec. 814. Contract authority for advanced development of initial or additional prototype units.

Sec. 815. Treatment of independent research and development costs on certain contracts.

Sec. 816. Non-traditional contractor definition.

Sec. 817. Repeal of domestic source restriction related to wearable electronics.

Sec. 818. Use of outcome-based and performance-based requirements for services contracts.

Sec. 819. Pilot program for longer term multiyear service contracts.

Sec. 820. Identification of commercial services.

Sec. 821. Government Accountability Office bid protest reforms.

Sec. 822. Enhanced post-award debriefing rights.

Sec. 823. Limitation on unilateral definitization.

Sec. 824. Restriction on use of reverse auctions and lowest price technically acceptable contracting methods for safety equipment.

Sec. 825. Use of lowest price technically acceptable source selection process.

Sec. 826. Middle tier of acquisition for rapid prototype and rapid fielding.

Sec. 827. Elimination of cost underruns as factor in calculation of penalties for cost overruns.

Sec. 828. Contract closeout authority.

Sec. 829. Service contracts of the Department of Defense.

Sec. 830. Department of Defense contractor workplace safety and accountability.

Sec. 831. Department of Defense promotion of contractor compliance with existing law.

Subtitle C—Provisions relating to major defense acquisition programs


Sec. 835. Revisions to definition of major defense acquisition program.

Sec. 836. Prohibition on use of lowest price technically acceptable source selection process for major defense acquisition programs.

Subtitle D—Provisions related to acquisition workforce


Sec. 841. Training in commercial items procurement.

Sec. 842. Modification of definition of acquisition workforce to include personnel engaged in the acquisition or development of cybersecurity systems.

Sec. 843. Training and support for programs pursuing agile acquisition methods.

Sec. 844. Credits to Department of Defense Acquisition Workforce Development Fund.

Subtitle E—Provisions related to commercial items


Sec. 851. Modification to definition of commercial items.

Sec. 852. Revision to definition of commercial item.

Sec. 853. Commercial item determinations.

Sec. 854. Preference for acquisition of commercial items.

Sec. 855. Inapplicable laws and regulations.

Subtitle F—Industrial base matters


Sec. 861. Review regarding applicability of foreign ownership, control, or influence requirements of National Security Industrial Program to national technology and industrial base companies.

Sec. 862. Pilot program on strengthening manufacturing in defense industrial base.

Sec. 863. Sunset of certain provisions relating to the industrial base.

Subtitle G—International contracting matters


Sec. 865. Procurement exception relating to agreements with foreign governments.

Sec. 866. Applicability of cost and pricing data certification requirements.

Sec. 867. Enhancing program licensing.

Subtitle H—Other transactions


Sec. 871. Other transaction authority.

Sec. 872. Education and training for transactions other than contracts and grants.

Sec. 873. Preference for use of other transactions and experimental authority.

Sec. 874. Methods for entering into research agreements.

Subtitle I—Development and acquisition of software intensive and digital products and services


Sec. 881. Rights in technical data.

Sec. 882. Defense Innovation Board analysis of software acquisition regulations.

Sec. 883. Pilot to tailor software-intensive major programs to use agile methods.

Sec. 884. Review and realignment of defense business systems to emphasize agile methods.

Sec. 885. Software development pilot using agile best practices.

Sec. 886. Use of open source software.

Subtitle J—Other matters


Sec. 891. Improved transparency and oversight over Department of Defense research, development, test, and evaluation efforts and procurement activities related to medical research.

Sec. 892. Rights in technical data related to medical research.

Sec. 893. Oversight, audit, and certification from the Defense Contract Audit Agency for procurement activities related to medical research.

Sec. 894. Requirements for Defense Contract Audit Agency report.

Sec. 895. Prototype projects to digitize defense acquisition regulations, policies, and guidance, and empower user tailoring of acquisition process.

Sec. 896. Pilot program for adoption of acquisition strategy for Defense Base Act insurance.

Sec. 897. Phase III awards.

Sec. 898. Pilot program for streamlined technology transition from the SBIR and STTR programs of the Department of Defense.

Sec. 899. Annual report on limitation of subcontractor intellectual property rights.

Sec. 899A. Extension from 20 to 30 years of maximum total period for Department of Defense contracts for storage, handling, or distribution of liquid fuels and natural gas.

Sec. 899B. Exception for Department of Defense contracts from requirement that business operations conducted under government contracts accept and dispense $1 coins.

Sec. 899C. Investing in rural small businesses.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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


Sec. 901. Chief Management Officer of the Department of Defense.

Sec. 902. Realignment of responsibilities, duties, and powers of Chief Information Officer of the Department of Defense.

Sec. 903. Clarification of authority of Under Secretary of Defense for Acquisition and Sustainment with respect to service acquisition programs for which the service acquisition executive is the milestone decision authority.

Sec. 904. Executive Schedule matters relating to Under Secretary of Defense for Acquisition and Sustainment.

Sec. 905. Technical amendment.

Sec. 906. Redesignation of Under Secretary of Defense for Personnel and Readiness as Under Secretary of Defense for Personnel and Health.

Sec. 907. Qualifications for appointment and additional duties and powers of certain officials within the Office of the Under Secretary of Defense (Comptroller).

Sec. 908. Five-year period of relief from active duty as a commissioned officer of a regular component of the Armed Forces for appointment to Under Secretary of Defense positions.

Sec. 909. Redesignation of Principal Deputy Under Secretaries of Defense as Deputy Under Secretaries of Defense and related matters.

Sec. 910. Reduction of number and elimination of specific designations of Assistant Secretaries of Defense.

Sec. 911. Limitation on maximum number of Deputy Assistant Secretaries of Defense.

Sec. 912. Modification of definition of OSD personnel for purposes of limitation on number of Office of Secretary of Defense personnel.

Subtitle B—Organization of Other Department of Defense Offices and Elements


Sec. 921. Reduction in authorized number of Assistant Secretaries of the military departments.

Sec. 922. Qualifications for appointment of Assistant Secretaries of the military departments for financial management.

Subtitle C—Organization and Management of the Department of Defense Generally


Sec. 931. Reduction in limitation on number of Department of Defense SES positions.

Sec. 932. Manner of carrying out reductions in major Department of Defense headquarters activities.

Sec. 933. Certifications on cost savings achieved by reductions in major Department of Defense headquarters activities.

Sec. 934. Direct hire authority for the Department of Defense for personnel to assist in business transformation and management innovation.

Sec. 935. Data analytics capability for support of enhanced oversight and management of the Defense Agencies and Department of Defense Field Activities.

Sec. 936. Enhanced use of data analytics to improve acquisition program outcomes.

Sec. 937. Pilot programs on data integration strategies for the Department of Defense.

Sec. 938. Background and security investigations for Department of Defense personnel.

Subtitle D—Other Matters


Sec. 951. Transfer of lead of Guam Oversight Council from the Deputy Secretary of Defense to the Secretary of the Navy.

Sec. 952. Corrosion control and prevention executives matters.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters


Sec. 1001. General transfer authority.

Sec. 1002. Calculations for payments into Department of Defense Military Retirement Fund using single level percentage of basic pay determined on Armed Force-wide rather than Armed Forces-wide basis.

Sec. 1003. Certifications on audit readiness of the Department of Defense and the military departments, Defense Agencies, and other organizations and elements of the Department of Defense.

Sec. 1004. Failure to obtain audit opinion on fiscal year full financial statements of the Department of Defense.

Sec. 1005. Improper payment matters.

Sec. 1006. Financial operations dashboard for the Department of Defense.

Sec. 1007. Comptroller General of the United States recommendations on audit capabilities and infrastructure and related matters.

Subtitle B—Counterdrug Activities


Sec. 1011. Extension and modification of authority to support a unified counterdrug and counterterrorism campaign in Colombia.

Subtitle C—Naval Vessels and Shipyards


Sec. 1016. Policy of the United States on minimum number of battle force ships.

Sec. 1017. Operational readiness of Littoral Combat Ships on extended deployment.

Sec. 1018. Authority to purchase used vessels to recapitalize the Ready Reserve Force and the Military Sealift Command surge fleet.

Sec. 1019. Surveying ships.

Sec. 1020. Pilot program on funding for national defense sealift vessels.

Subtitle D—Counterterrorism


Sec. 1031. Extension of prohibition on use of funds for transfer or release of individuals detained at United States Naval Station, Guantanamo Bay, Cuba, to the United States.

Sec. 1032. Extension of 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. 1033. Extension of prohibition on use of funds for transfer or release to certain countries of individuals detained at United States Naval Station, Guantanamo Bay, Cuba.

Sec. 1034. Extension of prohibition on use of funds for realignment of forces at or closure of United States Naval Station, Guantanamo Bay, Cuba.

Sec. 1035. Authority to transfer individuals detained at United States Naval Station, Guantanamo Bay, Cuba, to the United States temporarily for emergency or critical medical treatment.

Subtitle E—Miscellaneous Authorities and Limitations


Sec. 1041. Matters relating to the submittal of future-years defense programs.

Sec. 1042. Department of Defense integration of information operations and cyber-enabled information operations.

Sec. 1043. Prohibition on lobbying activities with respect to the Department of Defense by certain officers of the Armed Forces and civilian employees of the Department within two years of separation from military service or employment with the Department.

Sec. 1044. Definition of “unmanned aerial vehicle” for purposes of title 10, United States Code.

Sec. 1045. Technical amendment relating to management of military technicians.

Sec. 1046. Extension of prohibition on use of funds for retirement of legacy maritime mine countermeasure platforms.

Sec. 1047. Sense of Congress on the basing of KC–46A aircraft outside the continental United States.

Sec. 1048. Authorization to procure up to six polar-class icebreakers.

Subtitle F—Studies and Reports


Sec. 1061. Assessment of global force posture.

Sec. 1062. Army modernization strategy.

Sec. 1063. Report on Army plan to improve operational unit readiness by reducing number of non-deployable soldiers assigned to operational units.

Sec. 1064. Efforts to combat physiological episodes on certain Navy aircraft.

Sec. 1065. Studies on aircraft inventories for the Air Force.

Sec. 1066. Plan and recommendations for interagency vetting of foreign investments with potential impacts on national defense and national security.

Sec. 1067. Report on authorities for the employment, use, and status of National Guard and Reserve technicians.

Sec. 1068. Conforming repeals and technical amendments in connection with reports of the Department of Defense whose submittal to Congress has previously been terminated by law.

Sec. 1069. Annual reports on approval of employment or compensation of retired general or flag officers by foreign governments for Emoluments Clause purposes.

Sec. 1070. Annual report on civilian casualties in connection with United States military operations.

Sec. 1071. Report on large-scale, joint exercises involving the air and land domains.

Sec. 1072. Department of Defense review of Navy capabilities in the Arctic region.

Sec. 1073. Business case analysis on establishment of active duty association and additional primary aircraft authorizations for the 168th Air Refueling Wing.

Sec. 1074. Report on Navy capacity to increase production of anti-submarine warfare and search and rescue rotary wing aircraft in light of increase in the size of the surface fleet to 355 ships.

Subtitle G—Other Matters


Sec. 1081. Protection against misuse of Naval Special Warfare Command insignia.

Sec. 1082. Collaborations between the Armed Forces and certain non-Federal entities on support of Armed Forces missions abroad.

Sec. 1083. Federal charter for Spirit of America.

Sec. 1084. Reconsideration of claims for disability compensation for veterans who were the subjects of mustard gas or lewisite experiments during World War II.

Sec. 1085. Prize competition to identify root cause of physiological episodes on Navy, Marine Corps, and Air Force training and operational aircraft.

Sec. 1086. Exception to the interdepartmental waiver doctrine for cleanup of vehicle crashes.

Sec. 1087. Transfer of surplus firearms to Corporation for the Promotion of Rifle Practice and Firearms Safety.

TITLE XI—CIVILIAN PERSONNEL MATTERS

Subtitle A—Department of Defense Matters


Sec. 1101. Pilot program on enhanced personnel management system for cybersecurity and legal professionals in the Department of Defense.

Sec. 1102. Inclusion of Strategic Capabilities Office and Defense Innovation Unit Experimental of the Department of Defense in personnel management authority to attract experts in science and engineering.

Sec. 1103. Permanent authority for demonstration projects relating to acquisition personnel management policies and procedures.

Sec. 1104. Establishment of senior scientific technical managers at Major Range and Test Facility Base facilities and Defense Test Resource Management Center.

Sec. 1105. Extension of temporary direct hire authority for domestic defense industrial base facilities and the major range and test facilities base.

Sec. 1106. Direct hire authority for financial management experts in the Department of Defense workforce.

Sec. 1107. Authority for waiver of requirement for a baccalaureate degree for positions in the Department of Defense on cybersecurity and computer programming.

Subtitle B—Government-wide Matters


Sec. 1111. Elimination of foreign exemption provision in regard to overtime for Federal civilian employees temporarily assigned to a foreign area.

Sec. 1112. One-year extension of authority to waive annual limitation on premium pay and aggregate limitation on pay for Federal civilian employees working overseas.

Sec. 1113. One-year extension of temporary authority to grant allowances, benefits, and gratuities to civilian personnel on official duty in a combat zone.

TITLE XII—MATTERS RELATING TO FOREIGN NATIONS

Subtitle A—Assistance and Training


Sec. 1201. Support of special operations for irregular warfare.

Sec. 1202. Modification of authority on support of special operations to combat terrorism.

Sec. 1203. Modifications of certain authority in connection with reform of defense security cooperation programs and activities.

Sec. 1204. Global Security Contingency Fund matters.

Sec. 1205. Defense Institute of International Legal Studies.

Subtitle B—Matters Relating to Afghanistan and Pakistan


Sec. 1211. Extension of Commanders' Emergency Response Program and related authorities.

Sec. 1212. Extension of authority to transfer defense articles and provide defense services to the military and security forces of Afghanistan.

Sec. 1213. Extension and modification of authority for reimbursement of certain coalition nations for support provided to United States military operations.

Sec. 1214. Extension of authority to acquire products and services produced in countries along a major route of supply to Afghanistan.

Sec. 1215. Extension of semiannual report on enhancing security and stability in Afghanistan.

Sec. 1216. Sense of Congress regarding the Afghan special immigrant visa program.

Sec. 1217. Special immigrant visas for Afghan allies.

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


Sec. 1231. Modification of authority to provide assistance to counter the Islamic State of Iraq and Syria.

Sec. 1232. Modification of authority to provide assistance to the vetted Syrian opposition.

Sec. 1233. Extension and modification of authority to support operations and activities of the Office of Security Cooperation in Iraq.

Sec. 1234. Modification and additional elements in annual report on the military power of Iran.

Subtitle D—Matters Relating to the Russian Federation


Sec. 1241. Extension of limitation on military cooperation between the United States and the Russian Federation.

Sec. 1242. Extension of limitation on availability of funds relating to activities to recognize the sovereignty of the Russian Federation over Crimea.

Sec. 1243. Extension of Ukraine Security Assistance Initiative.

Sec. 1244. Extension of authority on training for Eastern European national security forces in the course of multilateral exercises.

Sec. 1245. Security assistance for Baltic nations for joint program for resiliency and deterrence against aggression.

Sec. 1246. Annual report on military and security developments involving the Russian Federation.

Sec. 1247. Annual report on attempts of the Russian Federation to provide disinformation and propaganda to members of the Armed Forces by social media.

Sec. 1248. Support of European Deterrence Initiative to deter Russian aggression.

Sec. 1249. Sense of Congress on the European Deterrence Initiative.

Sec. 1250. Enhancement of Ukraine Security Assistance Initiative.

Sec. 1251. Sense of Congress on the importance of the North Atlantic Treaty Organization Intelligence Fusion Center.

Subtitle E—Matters Relating to the Asia-Pacific Region


Sec. 1261. Asia-Pacific Stability Initiative.

Sec. 1262. Expansion of military-to-military engagement with the Government of Burma.

Sec. 1263. Agreement supplemental to Compact of Free Association with Palau.

Sec. 1264. Workforce issues for relocation of Marines to Guam.

Sec. 1265. United States policy with respect to freedom of navigation operations and overflight beyond the territorial seas.

Sec. 1266. Sense of Congress on the importance of the rule of law in the South China Sea.

Sec. 1267. Sense of Congress on the importance of the relationship between the United States and Japan.

Sec. 1268. Sense of Congress on the importance of the United States alliance with the Republic of Korea.

Sec. 1269. Sense of Congress on extended deterrence for the Korean Peninsula and Japan.

Sec. 1270. Defense partnership between the United States and Taiwan.

Sec. 1270A. Naval port of call exchanges between the United States and Taiwan.

Sec. 1270B. Program to enhance the undersea warfare capabilities of Taiwan.

Sec. 1270C. Invitation of Taiwan military forces to participate in joint military exercises.

Sec. 1270D. Report on military exchanges between senior officers and officials of the United States and Taiwan.

Subtitle F—Reports


Sec. 1271. Submittal of Department of Defense Supplemental and Cost of War Execution reports on quarterly basis.

Sec. 1272. Consolidation of reports on United States Armed Forces, civilian employees, and contractors deployed in support of Operation Inherent Resolve and Operation Freedom’s Sentinel.

Subtitle G—Other Matters


Sec. 1281. Modification of availability of funds in Special Defense Acquisition Fund for precision guided munitions.

Sec. 1282. Use of funds in the United States for certain United States-Israel anti-tunnel cooperation activities.

Sec. 1283. Foreign military sales letters of request for pricing and availability.

Sec. 1284. Sense of Congress on reaffirming strategic partnerships and allies.

TITLE XIII—COOPERATIVE THREAT REDUCTION


Sec. 1301. Specification of Cooperative Threat Reduction funds.

Sec. 1302. Funding allocations.

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.

Subtitle C—Chemical Demilitarization Matters


Sec. 1421. Acquisition reporting on major chemical demilitarization programs of the Department of Defense.

Subtitle D—Armed Forces Retirement Home


Sec. 1431. Authorization of appropriations for Armed Forces Retirement Home.

Sec. 1432. Armed Forces Retirement Home matters.

Subtitle E—Other Matters


Sec. 1441. 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. 1442. Enhancement of database of emergency response capabilities of the Department of Defense.

TITLE XV—AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OVERSEAS CONTINGENCY OPERATIONS

Subtitle A—Authorization of Appropriations


Sec. 1501. Purpose.

Sec. 1502. Overseas contingency operations.

Sec. 1503. Procurement.

Sec. 1504. Research, development, test, and evaluation.

Sec. 1505. Operation and maintenance.

Sec. 1506. Military personnel.

Sec. 1507. Working capital funds.

Sec. 1508. Drug Interdiction and Counter-Drug Activities, Defense-wide.

Sec. 1509. Defense Inspector General.

Sec. 1510. Defense Health Program.

Subtitle B—Financial Matters


Sec. 1521. Treatment as additional authorizations.

Sec. 1522. Special transfer authority.

Subtitle C—Other Matters


Sec. 1531. Afghanistan Security Forces Fund.

TITLE XVI—STRATEGIC PROGRAMS, CYBER, AND INTELLIGENCE MATTERS

Subtitle A—Space Activities


Sec. 1601. Air Force Space Command.

Sec. 1602. Air Force space contractor responsibility watch list.

Sec. 1603. Presidential National Voice Conferencing System.

Sec. 1604. Limitation on use of funds for Delta IV launch vehicle.

Sec. 1605. Policy of the United States with respect to classification of space as a combat domain.

Sec. 1606. Launch support and infrastructure modernization.

Subtitle B—Defense Intelligence and Intelligence-Related Activities


Sec. 1611. Extension of authority to engage in commercial activities as security for intelligence collection activities.

Subtitle C—Cyber Warfare, Cybersecurity, and Related Matters


Sec. 1621. Policy of the United States on cyberspace, cybersecurity, and cyber warfare.

Sec. 1622. Cyber posture review.

Sec. 1623. Modification and clarification of requirements and authorities relating to establishment of unified combatant command for cyber operations.

Sec. 1624. Annual assessment of cyber resiliency of nuclear command and control system.

Sec. 1625. Strategic Cybersecurity Program.

Sec. 1626. Evaluation of agile acquisition of cyber tools and applications.

Sec. 1627. Report on cost implications of terminating dual-hat arrangement for Commander of United States Cyber Command.

Sec. 1628. Modification of Information Assurance Scholarship Program.

Sec. 1629. Measuring compliance of components of Department of Defense with cybersecurity requirements for securing industrial control systems.

Sec. 1630. Exercise on assessing cybersecurity support to election systems of States.

Sec. 1630A. Report on various approaches to cyber deterrence.

Sec. 1630B. Prohibition on use of software platforms developed by Kaspersky Lab.

Subtitle D—Nuclear Forces


Sec. 1631. Collection, storage, and sharing of data relating to nuclear security enterprise.

Sec. 1632. Establishment of procedures for implementation of Nuclear Enterprise Review.

Sec. 1633. Procurement authority for certain parts of intercontinental ballistic missiles.

Sec. 1634. Execution and programmatic oversight of nuclear command, control, and communications programs.

Sec. 1635. Measures in response to noncompliance of the Russian Federation with its obligations under the INF Treaty.

Sec. 1636. Certification that the Nuclear Posture Review addresses deterrent effect and operation of United States nuclear forces in current and future security environments.

Sec. 1637. Plan to manage Integrated Tactical Warning and Attack Assessment System and multi-domain sensors.

Sec. 1638. Certification requirement with respect to strategic radiation hardened trusted foundry.

Sec. 1639. Requirements for Nuclear Posture Review.

Sec. 1640. Sense of Congress on Nuclear Posture Review.

Subtitle E—Missile Defense Programs


Sec. 1651. Iron Dome short-range rocket defense system and Israeli Cooperative Missile Defense Program co-development and co-production.

Sec. 1652. Development of persistent space-based sensor architecture.

Sec. 1653. Ground-based interceptor capacity and Fort Greely missile field infrastructure requirements.

Sec. 1654. Sense of the Senate on the state of United States missile defense.

Sec. 1655. Sense of the Senate and report on ground-based midcourse defense testing.

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. Modification of authority to carry out certain fiscal year 2015 project.

Sec. 2106. Extension of authorization of certain fiscal year 2014 project.

Sec. 2107. Extension of authorizations of certain fiscal year 2015 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. Extension of authorizations of certain fiscal year 2014 projects.

Sec. 2206. Extension of authorizations of certain fiscal year 2015 projects.

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 2017 projects.

Sec. 2306. Extension of authorizations of certain fiscal year 2015 projects.

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 2017 project.

Sec. 2405. Extension of authorizations of certain fiscal year 2014 projects.

Sec. 2406. Extension of authorizations of certain fiscal year 2015 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.

Sec. 2512. Modification of authority to carry out certain fiscal year 2017 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 2015 project.

Sec. 2612. Extension of authorizations of certain fiscal year 2014 projects.

Sec. 2613. Extension of authorizations of certain fiscal year 2015 projects.

TITLE XXVII—BASE REALIGNMENT AND CLOSURE ACTIVITIES


Sec. 2701. Authorization of appropriations for base realignment and closure activities funded through Department of Defense Base Closure Account.

Sec. 2702. Prohibition on conducting additional base realignment and closure (BRAC) round.

TITLE XXVIII—MILITARY CONSTRUCTION AND GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military Family Housing Changes


Sec. 2801. Authority to use expiring funds for certain military construction projects.

Sec. 2802. Extension of temporary, limited authority to use operation and maintenance funds for construction projects in certain areas outside the United States.

Subtitle B—Real Property and Facilities Administration


Sec. 2811. Authority to use energy cost savings for energy resilience, mission assurance, and weather damage repair and prevention measures.

Sec. 2812. Modification of unspecified minor military construction project authority to cover correction of deficiencies that are threats to installation resilience.

Sec. 2813. Land exchange valuation of property with reduced development that limits encroachment on military installations.

Sec. 2814. Treatment of storm water collection systems as utility systems.

Sec. 2815. Access to military installations by transportation network companies.

Subtitle C—Land Conveyances


Sec. 2821. Land conveyance, Natick Soldier Systems Center, Massachusetts.

Sec. 2822. Land conveyance, Army and Air Force Exchange Service property, Dallas, Texas.

Sec. 2823. Land conveyances, certain former peacekeeper ICBM facilities in Wyoming.

Sec. 2824. Land exchange, Naval Industrial Ordnance Reserve Plant, Sunnyvale, California.

Sec. 2825. Land exchange, Naval Air Station Corpus Christi, Texas.

Subtitle D—Project Management and Oversight Reforms


Sec. 2831. Notification requirement for certain cost overruns and schedule delays.

Sec. 2832. Limited authority for private sector supervision of military construction projects in event of extensive cost overruns or project delays.

Sec. 2833. Annual report on cost overruns and schedule delays.

Sec. 2834. Report on design errors and omissions related to Fort Bliss hospital replacement project.

Sec. 2835. Report on cost increase and delay related to USSTRATCOM command and control facility project at Offutt Air Force Base.

Subtitle E—Other Matters


Sec. 2841. Annual Department of Defense energy management reports.

Sec. 2842. Aggregation of energy efficiency and energy resilience projects in life cycle cost analyses.

Sec. 2843. Authority of the Secretary of the Air Force to accept lessee improvements at Air Force Plant 42.

Sec. 2844. Prohibition on use of funds for Kwajalein project.

Sec. 2845. Energy resilience.

Sec. 2846. Consideration of energy security and energy resilience in awarding energy and fuel contracts for military installations.

Sec. 2847. Requirement to address energy resilience in exercising utility system conveyance authority.

Sec. 2848. In-kind lease payments; prioritization of utility services that promote energy resilience.

Sec. 2849. Disclosure of beneficial ownership by foreign persons of high security space leased by the Department of Defense.

TITLE XXIX—OVERSEAS CONTINGENCY OPERATIONS MILITARY CONSTRUCTION


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

Sec. 2902. Authorized Air Force construction and land acquisition projects.

Sec. 2903. Authorization of appropriations.

Sec. 2904. Extension of authorization of certain fiscal year 2015 projects.

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. Assessment and development of prototype nuclear weapons of foreign countries.

Sec. 3112. Use of funds for construction and project support activities relating to MOX facility.

Sec. 3113. Repeal, consolidation, and modification of reporting requirements.

Sec. 3114. National Nuclear Security Administration personnel system.

Sec. 3115. Annual reports on unfunded priorities of National Nuclear Security Administration.

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD


Sec. 3201. Authorization.

TITLE XXXV—MARITIME ADMINISTRATION


Sec. 3501. Maritime Administration.

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.

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.

TITLE XLIII—OPERATION AND MAINTENANCE


Sec. 4301. Operation and maintenance.

Sec. 4302. Operation and maintenance for overseas contingency operations.

TITLE XLIV—MILITARY PERSONNEL


Sec. 4401. Military personnel.

Sec. 4402. Military personnel for overseas contingency operations.

TITLE XLV—OTHER AUTHORIZATIONS


Sec. 4501. Other authorizations.

Sec. 4502. Other authorizations for overseas contingency operations.

TITLE XLVI—MILITARY CONSTRUCTION


Sec. 4601. Military construction.

Sec. 4602. Military construction for overseas contingency operations.

TITLE XLVII—DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS


Sec. 4701. Department of Energy national security programs.

SEC. 3. Congressional defense committees.

In this Act, the term “congressional defense committees” has the meaning given that term in section 101(a)(16) of title 10, United States Code.

SEC. 4. Budgetary effects of this Act.

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

DIVISION ADepartment of Defense Authorizations

TITLE IProcurement

subtitle AAuthorization of appropriations

SEC. 101. Authorization of appropriations.

Funds are hereby authorized to be appropriated for fiscal year 2018 for procurement for the Army, the Navy and the Marine Corps, the Air Force, and Defense-wide activities, as specified in the funding table in section 4101.

subtitle BArmy programs

SEC. 111. Transfer of excess High Mobility Multipurpose Wheeled Vehicles to foreign countries.

(a) Transfers.—

(1) IN GENERAL.—Chapter 153 of title 10, United States Code, is amended by inserting after section 2581 the following new section:

§ 2581a. Transfer of excess High Mobility Multipurpose Wheeled Vehicles (HMMWVs) to foreign countries

“(a) Requirements.— (1) Before an excess High Mobility Multipurpose Wheeled Vehicle (HMMWV) is transferred on a grant or sales basis to a foreign country for the purpose of operation by that country, the Secretary of Defense shall ensure that the HMMWV receives the same new, modernized powertrain and a modernized, armored or armor-capable crew compartment restored to like-new condition that the HMMWV would receive if it were to be modernized for operational use by the armed forces.

“(2) For the purposes of paragraph (1), the term ‘the same new, modernized powertrain’—

“(A) means a fully-functioning new powertrain system; and

“(B) does not mean an individual part, component, subassembly, assembly, or subsystem integral to the functioning of the powertrain system such as a new engine or transmission.

“(3) Any work performed pursuant to paragraph (1) shall be performed in the United States and shall be covered by section 2460(b)(1) of this title.

“(b) Waiver.—Subject to the requirements of subsection (c), the Secretary may waive the requirements of subsection (a)(1) if the Secretary determines in writing that such an exception is required by the national security interests of the United States.

“(c) Notification.— (1) If the Secretary makes a written determination under subsection (b), the Secretary may not transfer excess HMMWVs until 30 days after the Secretary has provided notice of the proposed transfer to the congressional defense committees. The notification shall include—

“(A) the total quantity of HMMWVs, the serial and model numbers of each individual HMMWV, and the age, condition, and expected useful life of each individual HMMWV to be transferred;

“(B) the recipient of the HMMWVs, the intended use of the HMMWVs, and a description of the national security interests of the United States necessitating the transfer;

“(C) an explanation of why it is not in the national security interests of the United States to make the transfer in accordance with the requirements of subsection (a);

“(D) the impact on the national technology and industrial base and, particularly, any reduction of the opportunities of entities in the national technology and industrial base to sell new or used HMMWVs to the countries to which the proposed transfer of HMMWVs is to take place; and

“(E) the names of all entities in the national technology and industrial base consulted as part of the determination in subsection (D), as well as the dates when and the names, titles, and affiliations of all individuals with whom such consultations took place.

“(2) The Secretary shall make the notification required under this subsection in accordance with the procedures specified in section 060403 of volume 3, chapter 6, of the Department of Defense Financial Management Regulation.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2581 the following new item:


“2581a. Transfer of excess High Mobility Multipurpose Wheeled Vehicles (HMMWVs) to foreign countries.”.

(b) Effective date.—Section 2581a of title 10, United States Code, as added by subsection (a), shall apply with respect to transfers of High Mobility Multipurpose Wheeled Vehicles on and after the date of the enactment of this Act.

SEC. 112. Limitation on availability of funds for Army Air-Land Mobile Tactical Communications and Data Network, including Warfighter Information Network-Tactical (WIN-T).

(a) Limitation.—No funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2018 for other procurement, Army, and available for the Warfighter Information Network-Tactical (WIN-T), Increment 2 (Inc 2) program may be obligated or expended until the Secretary of the Army submits the report required under subsection (b).

(b) Report.—The Secretary of the Army shall submit to the congressional defense committees a report describing how the Army intends to implement the recommendations related to air-land ad-hoc, mobile tactical communications and data networks provided by the Director of Cost Assessment and Program Evaluation (CAPE) pursuant to section 237 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 781).

subtitle CNavy programs

SEC. 121. Multiyear procurement authority for Virginia class submarine program.

(a) Authority for multiyear procurement.—Subject to section 2306b of title 10, United States Code, the Secretary of the Navy may enter into one or more multiyear contracts, beginning with the fiscal year 2019 program year, for the procurement of up to 13 Virginia class submarines.

(b) Authority for advance procurement.—The Secretary of the Navy may enter into one or more contracts, beginning in fiscal year 2018, for advance procurement associated with the Virginia Class submarines for which authorization to enter into a multiyear procurement contract is provided under subsection (a), and for equipment or subsystems associated with the Virginia Class submarine program, including procurement of—

(1) long lead time material; or

(2) material or equipment in economic order quantities when cost savings are achievable.

(c) 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 2019 is subject to the availability of appropriations or funds for that purpose for such fiscal year.

(d) Limitation on termination liability.—A contract for construction of Virginia Class submarines entered into in accordance with subsection (a) shall include a clause that limits the liability of the United States to the contractor for any termination of the contract. The maximum liability of the United States under the clause shall be the amount appropriated for the submarines covered by the contract regardless of the amount obligated under the contract.

SEC. 122. Arleigh Burke class destroyers.

(a) Authority for multiyear procurement.—

(1) IN GENERAL.—Subject to section 2306b of title 10, United States Code, the Secretary of the Navy may enter into one or more multiyear contracts, beginning not earlier than the fourth quarter of fiscal year 2018, for the procurement of up to 15 Arleigh Burke class Flight III guided missile destroyers.

(2) AUTHORITY FOR ADVANCE PROCUREMENT.—The Secretary of the Navy may enter into one or more contracts, beginning in fiscal year 2018, for advance procurement associated with the destroyers for which authorization to enter into a multiyear procurement contract is provided under paragraph (1), and for systems and subsystems associated with such destroyers in economic order quantities when cost savings are achievable.

(3) CONDITION FOR OUT-YEAR CONTRACT PAYMENTS.—A contract entered into under paragraph (1) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2018 is subject to the availability of appropriations or funds for that purpose for such fiscal year.

(b) Modification to procurement of additional arleigh burke class destroyer.—Section 125(a)(1) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92) is amended by striking “to be procured either” and inserting “to be procured using a fixed-price contract either”.

SEC. 123. Multiyear procurement authority for V–22 joint aircraft program.

(a) Authority for multiyear procurement.—Subject to section 2306b of title 10, United States Code, the Secretary of Defense may enter into one or more multiyear contracts, beginning with the fiscal year 2018 program year, for the procurement of V–22 aircraft. Notwithstanding subsection (k) of such section 2306b, the Secretary of Defense may enter into a multiyear contract under this section for up to five years.

(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 2018 is subject to the availability of appropriations for that purpose for such later fiscal year.

SEC. 124. Design and construction of amphibious ship replacement designated LX(R) or amphibious transport dock designated LPD–30.

(a) In general.—The Secretary of the Navy may enter into a contract, beginning with the fiscal year 2018 program year, for the design and construction of the amphibious ship replacement designated LX(R) or the amphibious transport dock designated LPD–30 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 2018 is subject to the availability of appropriations for that purpose for such fiscal year.

SEC. 125. Modification of cost limitation baseline for CVN–78 class aircraft carrier program.

Section 122(a) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2105), as most recently amended by section 122 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 749), is further amended by striking paragraph (2) and inserting the following new paragraphs:

“(2) CVN–79.—The total amount obligated from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for the aircraft carrier designated CVN–79 may not exceed $11,398,000,000 (as adjusted pursuant to subsection (b)).

“(3) FOLLOW-ON SHIPS.—The total amount obligated from funds appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, for any ship that is constructed in the CVN–78 class of aircraft carriers after CVN–79 may not exceed $12,000,000,000 (as adjusted pursuant to subsection (b)).”.

SEC. 126. Extension of limitation on use of sole-source shipbuilding contracts for certain vessels.

Section 124 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended by striking “2017” and inserting “2017 or fiscal year 2018”.

subtitle DAir Force Programs

SEC. 131. Inventory requirement for Air Force fighter aircraft.

(a) Inventory requirement.—Section 8062 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(i) Inventory requirement.— (1) Effective October 1, 2017, the Secretary of the Air Force shall maintain a total aircraft inventory of fighter aircraft of not less than 1,970 aircraft, and a total primary mission aircraft inventory (combat-coded) of not less than 1,145 fighter aircraft.

“(2) In this subsection:

“(A) The term ‘fighter aircraft’ means an aircraft that—

“(i) is designated by a mission design series prefix of F– or A–;

“(ii) is manned by one or two crewmembers; and

“(iii) executes single-role or multi-role missions, including air-to-air combat, air-to-ground attack, air interdiction, suppression or destruction of enemy air defenses, close air support, strike control and reconnaissance, combat search and rescue support, or airborne forward air control.

“(B) The term ‘primary mission aircraft inventory’ means aircraft assigned to meet the primary aircraft authorization to a unit for the performance of its wartime mission.”.

(b) Limitation on retirement of Air Force fighter aircraft.—

(1) LIMITATION.—Except as provided under subsection (d), the Secretary of the Air Force may not proceed with a decision to retire fighter aircraft in any number that would reduce the total number of such aircraft in the Air Force total active inventory (TAI) below 1,970, and shall maintain a minimum of 1,145 fighter aircraft designated as primary mission aircraft inventory (PMAI).

(2) ADDITIONAL LIMITATIONS ON RETIREMENT OF FIGHTER AIRCRAFT.—Except as provided under subsection (d), the Secretary of the Air Force may not retire fighter aircraft from the total active inventory as of the date of the enactment of this Act until the later of the following:

(A) The date that is 30 days after the date on which the Secretary submits the report required under paragraph (3).

(B) The date that is 30 days after the date on which the Secretary certifies to the congressional defense committees that—

(i) the retirement of such fighter aircraft will not increase the operational risk of meeting the National Defense Strategy; and

(ii) the retirement of such aircraft will not reduce the total fighter force structure below 1,970 fighter aircraft or the primary mission aircraft inventory below 1,145.

(3) REPORT ON RETIREMENT OF AIRCRAFT.—The Secretary of the Air Force shall submit to the congressional defense committees a report setting forth the following:

(A) The rationale for the retirement of existing fighter aircraft and an operational analysis of replacement fighter aircraft that demonstrates performance of the designated mission at an equal or greater level of effectiveness as the retiring aircraft.

(B) An assessment of the implications for the Air Force, the Air National Guard, and the Air Force Reserve of the force mix ratio of fighter aircraft.

(C) Such other matters relating to the retirement of fighter aircraft as the Secretary considers appropriate.

(c) Reports on fighter aircraft.—

(1) IN GENERAL.—Except as provided under subsection (d), at least 90 days before the date on which a fighter aircraft is retired, the Secretary of the Air Force, in consultation with (where applicable) the Director of the Air National Guard or Chief of the Air Force Reserve, shall submit to the congressional defense committees a report on the proposed force structure and basing of fighter aircraft.

(2) ELEMENTS.—Each report submitted under paragraph (1) shall include the following elements:

(A) A list of each fighter aircraft proposed for retirement, including for each such aircraft—

(i) the mission design series type;

(ii) the variant; and

(iii) the assigned unit and military installation where such aircraft is based.

(B) A list of each unit affected by a proposed retirement listed under subparagraph (A) and a description of how such unit is affected.

(C) For each military installation and unit listed under subparagraph (A)(iii), a description of changes, if any, to the designed operational capability (DOC) statement of the unit as a result of a proposed retirement.

(D) A description of any anticipated changes in manpower authorizations as a result of a proposed retirement listed under subparagraph (A).

(d) Exception for certain aircraft.—The requirements of subsections (b) and (c) do not apply to individual fighter 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.

(e) Fighter aircraft defined.—In this section, the term “fighter aircraft” has the meaning given the term in subsection (i)(2)(A) of section 8062 of title 10, United States Code, as added by subsection (a) of this section.

SEC. 132. Comptroller General review of total force integration initiatives for reserve component rescue squadrons.

(a) Comptroller general review.—Not later than June 30, 2018, the Comptroller General of the United States shall review the Air Force fielding plan for the HH–60 replacement programs and submit to the congressional defense committees a report on the plan.

(b) Briefing.—Not later than March 1, 2018, the Comptroller General shall provide a briefing to the congressional defense committees on the plan.

(c) Elements.—The review received under subsection (a) shall include, with respect to the HH–60 replacement programs, the following elements:

(1) A description of the National Commission on the Structure of the Air Force’s recommendations regarding the use of concurrent and proportional fielding and how the Air Force applied these principles in the fielding plan for the HH–60G replacement programs.

(2) An evaluation of the Air Force’s fielding plan for the HH–60G replacement programs, including an assessment of the Air Force’s rationale for the plan, as well as the alternative fielding plans considered by the Air Force.

(3) An evaluation of the potential readiness impact of the Air Force’s fielding plan on active duty, National Guard, and Reserve units, including the ability to meet training, maintenance, and deployment requirements, as well as the implications for total force integration initiatives should the fielding not be proportional.

(d) HH–60G replacement programs defined.—In this section, the term “HH–60G replacement programs” means the HH–60G Ops Loss Replacement and HH-60W Combat Rescue Helicopter programs.

subtitle EDefense-wide, Joint, and multiservice matters

SEC. 141. F–35 economic order quantity contracting authority.

(a) In general.—The Secretary of Defense may enter into one or more contracts during fiscal year 2018 for the procurement of economic order quantities of material and equipment that has completed formal hardware qualification testing for the F–35 aircraft for use in procurement contracts to be awarded during fiscal years 2019 and 2020. The total amount obligated under all contracts entered into under this section shall not exceed $661,000,000.

(b) Authority.—To the extent that funds are otherwise available for obligation, the Secretary may enter into economic order quantity contracts for purchases under this section whenever the Secretary finds each of the following:

(1) That the use of such a contract will result in significant savings of the total anticipated costs of carrying out the program through annual contracts.

(2) That the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities.

(3) That there is a reasonable expectation that throughout the contemplated contract period the Secretary will request funding for the contract at the level required to avoid contract cancellation.

(4) That there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive.

(5) That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of an economic order quantity contract are realistic.

(6) That the use of such a contract will promote the national security of the United States.

(c) Certification requirement.—A contract may not be entered into under this section unless the Secretary of Defense certifies in writing, not later than 30 days before entry into the contract, that each of the following conditions is satisfied:

(1) The Secretary has determined that each of the requirements in paragraphs (1) through (6) of subsection (b) will be met by such contract and has provided the basis for such determination to the congressional defense committees.

(2) Confirmation that the preliminary findings of the Secretary under paragraph (1) were made after the completion of a cost analysis performed by the Director of Cost Assessment and Program Evaluation for the purpose of section 2334(e)(1) of title 10, United States Code, and that the analysis supports those preliminary findings.

(3) A sufficient number of end items of the system being acquired under such contract have been delivered at or within the most current estimates of the program acquisition unit cost or procurement unit cost for such system to determine that current estimates of such unit costs are realistic.

(4) During the fiscal year in which such contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program for such fiscal year will include the funding required to execute the program without cancellation.

(5) The contract is a fixed price type contract.

(6) The proposed contract provides for production at not less than minimum economic rates given the existing tooling and facilities.

SEC. 142. Authority for Explosive Ordnance Disposal units to acquire new or emerging technologies and capabilities.

The Secretary of Defense may provide Explosive Ordnance Disposal (EOD) units with the authority to acquire new or emerging EOD technologies and capabilities that are not specifically listed on the Table of Allowance (TOA) or Table of Equipment (TOE).

TITLE IIResearch, development, test, and evaluation

subtitle AAuthorization of appropriations

SEC. 201. Authorization of appropriations.

Funds are hereby authorized to be appropriated for fiscal year 2018 for the use of the Department of Defense for research, development, test, and evaluation as specified in the funding table in section 4201.

subtitle BProgram requirements, restrictions, and limitations

SEC. 211. Mechanisms for expedited access to technical talent and expertise at academic institutions to support Department of Defense missions.

(a) Arrangements authorized.—

(1) IN GENERAL.—The Secretary of Defense may establish one or more multi-institution task order contracts, consortia, cooperative agreements, or other arrangements to facilitate expedited access to university technical expertise, including faculty, staff, and students, in support of Department of Defense missions in the areas specified in subsection (e).

(2) USE FOR TECHNICAL ANALYSES AND ENGINEERING SUPPORT.—The Secretary may use an arrangement under paragraph (1) to fund technical analyses and other engineering support as required to address acquisition and operational challenges, including support for classified programs and activities.

(3) PERFORMANCE BY DESIGNATED UNIVERSITY PERFORMER.—The Secretary shall ensure that work awarded through an arrangement under paragraph (1) is performed primarily by the designated university performer.

(b) Limitation.—An arrangement established under subsection (a)(1) may not be used to fund research programs that can be executed through other Department of Defense basic research activities.

(c) Consultation with other Department of Defense activities.—An arrangement established under subsection (a)(1) shall, to the degree practicable, be made in consultation with other Department of Defense activities, including federally funded research and development centers (FFRDCs), university affiliated research centers (UARCs), and Defense laboratories and test centers, for purposes of providing technical expertise and reducing costs and duplicative efforts.

(d) Policies and procedures.—If the Secretary establishes one or more arrangements under subsection (a)(1), the Secretary shall establish and implement policies and procedures to govern—

(1) selection of participants in the arrangement or arrangements;

(2) the awarding of task orders under the arrangement or arrangements;

(3) maximum award size for tasks under the arrangement or arrangements;

(4) the appropriate use of competitive awards and sole source awards under the arrangement or arrangements; and

(5) technical areas under the arrangement or arrangements.

(e) Mission areas.—The areas specified in this subsection are as follows:

(1) Cybersecurity.

(2) Air and ground vehicles.

(3) Shipbuilding.

(4) Explosives detection and defeat.

(5) Undersea warfare.

(6) Trusted electronics.

(7) Unmanned systems.

(8) Directed energy.

(9) Energy, power, and propulsion.

(10) Management science and operations research.

(11) Artificial intelligence.

(12) Data analytics.

(13) Business systems.

(14) Technology transfer and transition.

(15) Biological engineering and genetic enhancement.

(16) High performance computing.

(17) Materials science and engineering.

(18) Quantum information sciences.

(19) Special operations activities.

(20) Modeling and simulation.

(21) Autonomous systems.

(22) Model based engineering.

(23) Such other areas as the Secretary considers appropriate.

(f) Sunset.—The authorities under this section shall expire on September 30, 2020.

(g) Arrangements established under subsection (a)(1) defined.—In this section, the term “arrangement established under subsection (a)(1)” means a multi-institution task order contract, consortia, cooperative agreement, or other arrangement established under subsection (a)(1).

SEC. 212. Codification and enhancement of authorities to provide funds for defense laboratories for research and development of technologies for military missions.

(a) In general.—Chapter 139 of title 10, United States Code, is amended by inserting after section 2362 the following new section:

§ 2363. Mechanisms to provide funds for defense laboratories for research and development of technologies for military missions

“(a) Mechanisms to provide funds.— (1) The Secretary of Defense, in consultation with the Secretaries of the military departments, shall establish mechanisms under which the director of a defense laboratory may use an amount of funds equal to not less than two percent and not more than four percent of all funds available to the defense laboratory for the following purposes:

“(A) To fund innovative basic and applied research that is conducted at the defense laboratory and supports military missions.

“(B) To fund development programs that support the transition of technologies developed by the defense laboratory into operational use.

“(C) To fund workforce development activities that improve the capacity of the defense laboratory to recruit and retain personnel with necessary scientific and engineering expertise that support military missions.

“(D) To fund the revitalization recapitalization, or minor military construction of the laboratory infrastructure and equipment, in accordance with subsection (b).

“(2) The mechanisms established under paragraph (1) shall provide that funding shall be used under paragraph (1) at the discretion of the director of a defense laboratory in consultation with the science and technology executive of the military department concerned.

“(3) 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.

“(b) Availability of funds for infrastructure projects.— (1) Subject to the provisions of this subsection, funds available under a mechanism under subsection (a)(1)(D) that are solely intended to carry out a laboratory infrastructure project shall be available for such project until expended.

“(2) Funds shall be available in accordance with paragraph (1) for a project referred to in such paragraph only if the Secretary notifies the congressional defense committees of the total cost of the project before the date on which the Secretary uses a mechanism under subsection (a)(1)(D) for such project.

“(3) Funds may accumulate under a mechanism under subsection (a) for a project referred to in paragraph (1) for not more than five years.

“(4) The Secretary shall ensure that a project referred to in paragraph (1) for which funds are made available in accordance with such paragraph complies with the applicable cost limitations in the following provisions of law:

“(A) Section 2805(d) of this title, with respect to revitalization and recapitalization projects.

“(B) Section 2811 of this title, with respect to repair projects.

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

“(c) Annual report on use of authority.—Not later than March 1 of each year, the Secretary of Defense shall submit to the congressional defense committees a report on the use of the authority under subsection (a) during the preceding year.”.

(b) Clerical amendment.—The table of sections at the beginning of chapter 139 of such title is amended by inserting after the item relating to section 2362 the following new item:


“2363. Mechanisms to provide funds for defense laboratories for research and development of technologies for military missions.”.

(c) Conforming amendments.— (1) Section 219 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110–417; 10 U.S.C. 2358 note), is hereby repealed.

(2) Section 2805(d)(1)(B) of title 10, United States Code, is amended by striking “under section 219(a) of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110–417; 10 U.S.C. 2358 note)” and inserting “section 2363(a) of this title”.

SEC. 213. Modification of laboratory quality enhancement program.

(a) In general.—Section 211 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended—

(1) in subsection (a)(1)—

(A) in subparagraph (A), by striking “; and” and inserting a semicolon;

(B) in subparagraph (B), by striking the semicolon and inserting “; and”; and

(C) by adding at the end the following new subparagraph:

“(C) new interpretations of existing statutes and regulations that would enhance the ability of a director of a science and technology reinvention laboratory to manage the facility and discharge the mission of the laboratory;”;

(2) in subsection (d), by adding at the end the following new paragraph:

“(3) (A) Each panel described in paragraph (1), (2), or (3) of subsection (b) shall submit to the panel described in paragraph (4) of such subsection (relating to governance and oversight processes) the following:

“(i) The findings of the panel with respect to the review conducted by the panel under subsection (a)(1)(C).

“(ii) The recommendations made by the panel under such subsection.

“(iii) Such comments, findings, and recommendations as the panel may have received by a science and technology reinvention laboratory with respect to—

“(I) the review conducted by the panel under such subsection; or

“(II) recommendations made by the panel under such subsection.

“(B) (i) The panel described in subsection (b)(4) shall review and refashion such recommendations as the panel may receive under subparagraph (A).

“(ii) In reviewing and refashioning recommendations under clause (i), the panel may, as the panel considers appropriate, consult with the science and technology executive of the affected service.

“(C) The panel described in subsection (b)(4) shall submit to the Under Secretary of Defense for Research and Engineering the recommendations made by the panel under subsection (a)(1)(C) and the recommendations refashioned by the panel under subparagraph (B) of this paragraph.”;

(3) by redesignating subsections (e) and (f) as subsection (f) and (g), respectively; and

(4) by inserting after subsection (d) the following new subsection (e):

“(e) Interpretation of provisions of law.— (1) The Under Secretary of Defense for Research and Engineering, acting under the guidance of the Secretary, shall issue regulations regarding the meaning, scope, implementation, and applicability of any provision of a statute relating to a science and technology reinvention laboratory.

“(2) In interpreting or defining under paragraph (1), the Under Secretary shall, to the degree practicable, emphasize providing the maximum operational flexibility to the directors of the science and technology reinvention laboratories to discharge the missions of their laboratories.

“(3) In interpreting or defining under paragraph (1), the Under Secretary shall seek recommendations from the panel described in subsection (b)(4).”.

(b) Technical corrections.— (1) Subsections (a), (c)(1)(C), and (d)(2) of such section are amended by striking “Assistant Secretary” each place it appears and inserting “Under Secretary”.

(2) Subparagraph (C) of section 342(b)(3) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337), as amended by section 211(f) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), as redesignated by subsection (a)(3) of this section, is amended by striking “Assistant Secretary” and inserting “Under Secretary”.

SEC. 214. Prizes for advanced technology achievements.

Section 2374a of title 10, United States Code, is amended—

(1) in subsection (a), by striking “in recognition of” and inserting “and other types of prizes that the Secretary determines are appropriate to recognize”;

(2) in subsection (c), by striking “cash” both places it appears;

(3) in subsection (e)—

(A) by striking “and from State and local governments” and inserting “, from State and local governments, and from the private sector”; and

(B) by adding at the end the following: “The Secretary may not give any special consideration to any private sector entity in return for a donation.”; and

(4) by amending subsection (f) to read as follows:

“(f) Use of prize authority.—Use of prize authority under this section shall be considered the use of competitive procedures for the purposes of section 2304 of this title.”.

SEC. 215. Expansion of definition of competitive procedures to include competitive selection for award of research and development proposals.

Section 2302(2)(B) of title 10, United States Code, is amended by striking “basic research” and inserting “research and development”.

SEC. 216. Inclusion of modeling and simulation in test and evaluation activities for purposes of planning and budget certification.

Section 196 of title 10, United States Code, is amended—

(1) in subsection (d)(1), in the first sentence, by inserting “, including modeling and simulation capabilities” after “and resources”; and

(2) in subsection (e)(1), by inserting “, including modeling and simulation activities,” after “evaluation activities”.

SEC. 217. Differentiation of research and development activities from service activities.

(a) In general.—For the purposes of activities and programs carried out by the Department of Defense, research and development activities, including activities under the Small Business Innovation Research Program (SBIR) or the Small Business Technology Transfer Program (STTR), shall be considered as separate and distinct from contract service activities.

(b) Guidance.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue updated guidance to carry out this section.

(c) Definitions.—

(1) IN GENERAL.—In this section:

(A) The term “advisory and assistance service” has the meaning given such term in section 1105(g)(2) of title 31, United States Code.

(B) The term “research and development activities”—

(i) means—

(I) creative work undertaken on a systematic basis in order to increase the stock of knowledge, including the knowledge of man, culture, and society; and

(II) the use of the stock of knowledge described in subparagraph (A) to devise new applications; and

(ii) includes activities described in section 9 of the Small Business Act (15 U.S.C. 638).

(C) The term “contract service activities” has the meaning given the term “contract services” in section 2330(c) of title 10, United States Code.

(D) The terms “Small Business Innovation Research Program” and “Small Business Technology Transfer Program” have the meanings given such terms in section 9(e) of the Small Business Act (15 U.S.C. 638(e)).

(2) DEFINITION OF SERVICES FOR PURPOSES OF REQUIREMENTS RELATING TO TRACKING OF PURCHASES OF SERVICES.—Section 2330a(h) of title 10, United States Code, is amended by inserting after paragraph (4) the following new paragraph:

“(5) SERVICES.—The term ‘services’ has the meaning given the term ‘contract services’ in section 2330(c) of this title.”.

SEC. 218. Designation of additional Department of Defense science and technology reinvention laboratories.

Section 1105(a) of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 10 U.S.C. 2358 note) is amended by adding at the end the following new paragraphs:

“(20) The Air Force Office of Scientific Research.

“(21) The 711th Human Performance Wing of the Air Force Research Laboratory.

“(22) The Air Vehicles Directorate of the Air Force Research Laboratory.

“(23) The Directed Energy Directorate of the Air Force Research Laboratory.

“(24) The Information Directorate of the Air Force Research Laboratory.

“(25) The Materials and Manufacturing Directorate of the Air Force Research Laboratory.

“(26) The Munitions Directorate of the Air Force Research Laboratory.

“(27) The Propulsion Directorate of the Air Force Research Laboratory.

“(28) The Sensors Directorate of the Air Force Research Laboratory.

“(29) The Space Vehicles Directorate of the Air Force Research Laboratory.

“(30) The Naval Facilities Engineering and Expeditionary Warfare Center.”.

SEC. 219. Department of Defense directed energy weapon system prototyping and demonstration program.

(a) Establishment.—The Secretary of Defense, acting through the Under Secretary, shall establish a program on the prototyping and demonstration of directed energy weapon systems to build and maintain the military superiority of the United States by—

(1) accelerating the fielding of directed energy weapon systems that would help counter technological advantages of potential adversaries of the United States; and

(2) supporting the military departments, the combatant commanders, the United States Special Operations Command, and the Missile Defense Agency in developing prototypes and demonstrating operational utility of high energy lasers and high powered microwave weapon systems.

(b) Guidelines.—

(1) IN GENERAL.—Not later than 180 days after the date of the enactment of this Act, the Under Secretary shall issue guidelines for the operation of the program established under subsection (a), including—

(A) criteria for an application for funding by a military department, defense agency, or a combatant command;

(B) the priorities, if any, to be provided to field directed energy weapon system technologies developed by research funding of the Department or industry; and

(C) criteria for evaluation of an application for funding or changes to policies or acquisition and business practices by such a department, agency, or command for purposes of improving the effectiveness and efficiency of the Program.

(2) LIMITATION.—Funding for a military department, defense agency, or combatant command under the program established under subsection (a) may only be available for advanced technology development, prototyping, and demonstrations in which the Department of Defense maintains management of the technical baseline and a primary emphasis on technology transition and evaluating military utility to enhance the likelihood that the particular directed energy weapon system will meet the Department end user’s need.

(c) Applications for funding.—

(1) IN GENERAL.—Not less frequently than once each year, the Under Secretary shall solicit from the heads of the military departments, the defense agencies, and the combatant commands applications for funding under the program established under subsection (a) to be used to enter into contracts, cooperative agreements, or other transaction agreements entered into pursuant to section 2371b of title 10, United States Code, with appropriate entities for the fielding or commercialization of technologies.

(2) TREATMENT PURSUANT TO CERTAIN CONGRESSIONAL RULES.—Nothing in this section shall be construed to require any official of the Department of Defense to provide funding under the program to any congressional earmark as defined pursuant to clause 9 of rule XXI of the Rules of the House of Representatives or any congressionally directed spending item as defined pursuant to paragraph 5 of rule XLIV of the Standing Rules of the Senate.

(d) Funding.—

(1) IN GENERAL.—Except as provided in paragraph (2) and subject to the availability of appropriations for such purpose, of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2018 for research, development, test, and evaluation, defense-wide, $200,000,000 shall be available to the Under Secretary to allocate to the military departments, the defense agencies, and the combatant commands to carry out the program established under subsection (a).

(2) LIMITATION.—Not more than half of the amounts made available under paragraph (1) may be allocated as described in such paragraph until the Under Secretary—

(A) develops the strategic plan required by section 219(a)(2)(A) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 2431 note); and

(B) submits such strategic plan to the congressional defense committees.

(e) Designation of Under Secretary of Defense for Research and Engineering as the official with principal responsibility for development and demonstration of directed energy weapons.—Section 219(a)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 2431 note) is amended by striking “Not later” and all that follows through “of Defense” and inserting “The Under Secretary of Defense for Research and Engineering shall serve”.

(f) Under Secretary defined.—In this section, the term “Under Secretary” means the Under Secretary of Defense for Research and Engineering in the Under Secretary's capacity as the official with principal responsibility for the development and demonstration of directed energy weapons pursuant to section 219(a)(1) of such Act (Public Law 114–328; 10 U.S.C. 2431 note), as amended by subsection (e).

SEC. 220. Authority for the Under Secretary of Defense for Research and Engineering to promote innovation in the Department of Defense.

The Secretary of Defense shall establish procedures under which the Under Secretary of Defense for Research and Engineering may request a time-limited review and if necessary require coordination on and modification of proposed directives, rules, regulations, and other policies that in Under Secretary's view would adversely affect the ability of the innovation, research, and engineering enterprise of the Department of Defense to effectively and efficiently execute its missions, including policies and practices concerning the following:

(1) Personnel and talent management.

(2) Financial management and budgeting.

(3) Infrastructure, installations, and military construction.

(4) Acquisition.

(5) Management.

(6) Such other areas as the Secretary may designate.

SEC. 221. Limitation on availability of funds for F–35 Joint Strike Fighter Follow-On Modernization.

None of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2018 or any other fiscal year for the Department of Defense may be obligated for F–35 Joint Strike Fighter Follow-On Modernization until the Secretary of Defense provides the final report required under section 224(d) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328).

SEC. 222. Improvement of update process for populating mission data files used in advanced combat aircraft.

(a) Improvements to update process.—

(1) IN GENERAL.—The Secretary of Defense shall take such actions as may be necessary to improve the process used to update the mission data files used in advanced combat aircraft of the United States so that such updates can occur more quickly.

(2) REQUIREMENTS.—In improving the process under paragraph (1), the Secretary shall ensure the following:

(A) That under such process, updates to the mission data files are developed, operationally tested, and loaded onto systems of advanced combat aircraft while in theaters of operation in a time-sensitive manner to allow for the distinguishing of threats, including distinguishing friends from foes, loading and delivery of weapon suites, and coordination with allied and coalition armed forces.

(B) When updates are made to the mission data files, all areas of responsibility (AoRs) are included.

(C) The process includes best practices relating to such mission data files that have been identified by industry and allies of the United States.

(D) The process improves the exchange of information between weapons systems of the United States and weapon systems of allies and partners of the United States, with respect to such mission data files.

(b) Consultation and pilot programs.—In carrying out subsection (a), the Secretary shall consult the innovation organizations resident in the Department of Defense and may consider carrying out a pilot program under another provision of this Act.

(c) Report.—Not later than March 31, 2018, the Secretary shall submit to the congressional defense committees a report on the actions taken by the Secretary under subsection (a)(1) and how the process described in such subsection has been improved.

subtitle CReports and other matters

SEC. 231. Competitive acquisition plan for low probability of detection data link networks.

(a) Plan required.—The Under Secretary of Defense for Acquisition, Technology, and Logistics and the Vice Chairman of the Joint Chiefs of Staff shall jointly, in consultation with the Secretary of the Navy and the Secretary of the Air Force, develop a plan to procure a secure, low probability of detection data link network capability with the ability to effectively operate in hostile jamming environments while preserving the low observable characteristics of the relevant platforms, between existing and planned—

(1) fifth-generation combat aircraft;

(2) fifth-generation and fourth-generation combat aircraft;

(3) fifth-generation and fourth-generation combat aircraft and appropriate support aircraft and other network nodes for command, control, communications, intelligence, surveillance, and reconnaissance purposes; and

(4) fifth-generation and fourth-generation combat aircraft and their associated network-enabled precision weapons.

(b) Additional plan requirements.—The plan required by subsection (a) shall include—

(1) nonproprietary and open systems approaches compatible with the Rapid Capabilities Office Open Mission Systems initiative of the Air Force and the Future Airborne Capability Environment initiative of the Navy;

(2) a competitive acquisition process, to include comparative flight demonstrations in realistic airborne environments; and

(3) low risk and affordable solutions with minimal impact or changes to existing host platforms, and minimal overall integration costs.

(c) Briefing.—Not later than February 15, 2018, the Under Secretary and the Vice Chairman shall provide to the congressional defense committees written documentation and briefing on the plan developed under subsection (a).

(d) Limitation.—Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2018 for operations and maintenance for the Office of the Secretary of Defense and the Office of the Chairman of the Joint Chiefs of Staff, not more than 85 percent may be obligated or expended until a period of 15 days has elapsed following the date on which the Under Secretary and Vice Chairman submits to the congressional defense committees the plan required by subsection (a).

SEC. 232. Clarification of selection dates for pilot program for the enhancement of the research, development, test, and evaluation centers of the Department of Defense.

Section 233 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended—

(1) in subsection (b)(2), by striking “the enactment of this Act” both places it appears and inserting “such submittal”; and

(2) in subsection (c)(1), by striking “propose and implement” and inserting “submit to the Assistant Secretary concerned a proposal on, and implement,”.

SEC. 233. Requirement for a plan to build a prototype for a new ground combat vehicle for the Army.

(a) In general.—Not later than 90 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the congressional defense committees a plan to build a prototype for a new ground combat vehicle for the Army.

(b) Contents.—The plan required by subsection (a) shall include the following:

(1) A description of how the Secretary intends to exploit the latest enabling component technologies that have the potential to dramatically change basic combat vehicle design and improve lethality, protection, mobility, range, and sustainment, including an analysis of capabilities of the most advanced foreign ground combat vehicles and whether any have characteristics that should inform the development of the Army's prototype vehicle, including whether any United States allies or partners have advanced capabilities that could be directly incorporated in the prototype.

(2) The schedule, cost, key milestones, and leadership plan to rapidly design and build the prototype ground combat vehicle.

SEC. 234. Plan for successfully fielding the Integrated Air and Missile Defense Battle Command System.

(a) Plan required.—Not later than 180 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the congressional defense committees a plan to successfully field a suitable, survivable, and effective Integrated Air and Missile Defense Battle Command System program.

(b) Limitation.—None of the funds authorized to be appropriated by this Act for research, development, test, and evaluation may be obligated by the Secretary of the Army for the Army Integrated Air and Missile Defense and the Integrated Air and Missile Defense Battle Command System until the date on which the plan is submitted under subsection (a).

SEC. 235. Sense of Congress on hypersonic weapons.

(a) Findings.—Congress makes the following findings:

(1) The United States has gained a thorough understanding of hypersonic technology over the course of seven decades of experimentation.

(2) The requirements for technological breakthroughs in hypersonics have largely been established, allowing pursuit of hypersonic glide weapons without a prohibitive budget effect.

(3) The Department of Defense has several hypersonic research and development efforts underway, including conventional prompt global strike (CPS) weapons system, the Hypersonic Air-Breathing Weapon Concept, and the Tactical Boost Glide program.

(4) In testimony before the Committee on Armed Services of the Senate on April 4, 2017, the Commander of United States Strategic Command, General John Hyten, identified the conventional prompt global strike weapons system as the “leading technology maturation effort in the realm of hypersonics” and stated that his command sees “an operational need for a CPS capabilities by the mid-2020s.”.

(5) Hypersonic weapons present a radical change in warfare, because they can circumvent many of the challenges associated with contested warfare and integrated air defenses.

(6) Hypersonic weapons may provide solutions to difficult problem sets, such as anti-access area denial schemes, deeply buried or hardened target sets, and mobile high value target sets.

(7) Other countries are aggressively pursuing hypersonic weapons at an alarming rate that threaten to outpace the United States if the United States does not more aggressively pursue development of hypersonic weapons.

(8) The Air Force has a $10,000,000 requirement on the Unfunded Priority List for hypersonic prototyping.

(b) Sense of Congress.—It is the sense of Congress that—

(1) the Department of Defense should expedite testing, evaluation, and acquisition of hypersonic weapon systems to meet the stated needs of the warfighter;

(2) testing of such weapon systems should include flight testing, ground based testing, and underwater launch testing;

(3) the Department of Defense should adhere to the requirement in section 1688 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) to proceed to a Milestone A decision on the conventional prompt global strike weapons system not later than September 30, 2020, or the date that is 240 days after the successful completion of intermediate range flight 2 of such system;

(4) the United States cannot afford to lose its advantage over foreign countries in developing hypersonic weapons; and

(5) the Department of Defense should focus on the next generation of weapon systems, including third offset technologies, such as hypersonics.

TITLE IIIOperation and Maintenance

subtitle AAuthorization of appropriations

SEC. 301. Authorization of appropriations.

Funds are hereby authorized to be appropriated for fiscal year 2018 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 BLogistics and sustainment

SEC. 311. Sentinel Landscapes Partnership.

(a) Establishment.—The Secretary of Defense, in coordination with the Secretary of Agriculture and the Secretary of the Interior, may establish and carry out a program to preserve sentinel landscapes. The program shall be known as the “Sentinel Landscapes Partnership”.

(b) Designation of sentinel landscapes.—The Secretary of Defense, in consultation with the Secretary of Agriculture and the Secretary of the Interior, may, as the Secretary determines appropriate, collectively designate one or more sentinel landscapes.

(c) Coordination of activities.—The Secretaries may coordinate actions between their departments and with other agencies and private organizations to more efficiently work together for the mutual benefit of conservation, working lands, and national defense, and to encourage private landowners to engage in voluntary land management and conservation activities that contribute to the sustainment of military installations, ranges, and airspace.

(d) Priority consideration.—The Secretary of Agriculture and the Secretary of the Interior may give to any eligible landowner or agricultural producer within a designated sentinel landscape priority consideration for participation in any easement, grant, or assistance programs administered by that Secretary’s department. Participation in any such program pursuant to this section shall be voluntary.

(e) Definitions.—In this section:

(1) MILITARY INSTALLATION.—The term “military installation” has the same meaning as provided in section 670(1) of title 16, United States Code.

(2) STATE-OWNED NATIONAL GUARD INSTALLATION.—The term “State-owned National Guard installation” has the same meaning as provided in section 670(3) of title 16, United States Code.

(3) SENTINEL LANDSCAPE.—The term “sentinel landscape” means a landscape-scale area encompassing—

(A) one or more military installations or state-owned National Guard installations and associated airspace; and

(B) the working or natural lands that serve to protect and support the rural economy, the natural environment, outdoor recreation, and the national defense test and training missions of the military- or State-owned National Guard installation or installations.

(f) Conforming amendment.—Section 312(b) of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 729; 10 U.S.C. 2684a note) is repealed.

SEC. 312. Increased percentage of sustainment funds authorized for realignment to restoration and modernization at each installation.

(a) In general.—The Secretary of Defense may authorize an installation commander to realign up to 7.5 percent of an installation’s sustainment funds to restoration and modernization.

(b) Sunset.—The authority under subsection (a) shall expire at the close of September 30, 2022.

(c) Definitions.—The terms “sustainment”, “restoration”, and “modernization” have the meanings given the terms in the Department of Defense Financial Management Regulation.

subtitle CReports

SEC. 321. Plan for modernized, dedicated Department of the Navy adversary air training enterprise.

(a) Plan required.—The Chief of Naval Operations and the Commandant of the Marine Corps shall develop a plan—

(1) to establish a modernized, dedicated adversary air training enterprise for the Department of the Navy in order to—

(A) maximize warfighting effectiveness and synergies of the current and planned fourth and fifth generation combat air forces through optimized training and readiness; and

(B) harness intelligence analysis, emerging live-virtual-constructive training technologies, range infrastructure improvements, and results of experimentation and prototyping efforts in operational concept development;

(2) to explore all available opportunities to challenge the combat air forces of the Department of the Navy with threat representative adversary-to-friendly aircraft ratios, known and emerging adversary tactics, and high-fidelity replication of threat airborne and ground capabilities; and

(3) to execute all means available to achieve training and readiness goals and objectives of the Navy and Marine Corps with demonstrated institutional commitment to the adversary air training enterprise through the application of Department of the Navy policy and resources, partnering with the other Armed Forces, allies, and friends, and employing the use of industry contracted services.

(b) Plan elements.—The plan required under subsection (a) shall include enterprise goals, objectives, concepts of operations, phased implementation timelines, analysis of expected readiness improvements, prioritized resource requirements, and such other matters as the Chief of Naval Operations and Commandant of the Marine Corps consider appropriate.

(c) Submittal of plan and briefing.—Not later than March 1, 2018, the Chief of Naval Operations and Commandant of the Marine Corps shall provide to the Committees on Armed Services of the Senate and the House of Representatives a written plan and briefing on the plan required under subsection (a).

subtitle DOther matters

SEC. 331. Defense Siting Clearinghouse.

(a) Codification.—Chapter 7 of title 10, United States Code, is amended by inserting after section 183 the following new section:

§ 183a. Defense Siting Clearinghouse for review of mission obstructions

“(a) Establishment.— (1) The Secretary of Defense shall establish a Defense Siting Clearinghouse (in this section referred to as the ‘Clearinghouse’).

“(2) The Clearinghouse shall be—

“(A) organized under the authority, direction, and control of an Assistant Secretary of Defense designated by the Secretary; and

“(B) assigned such personnel and resources as the Secretary considers appropriate to carry out this section.

“(b) Functions.— (1) The Clearinghouse shall coordinate Department of Defense review of applications for energy projects filed with the Secretary of Transportation pursuant to section 44718 of title 49 and received by the Department of Defense from the Secretary of Transportation.

“(2) The Clearinghouse shall accelerate the development of planning tools necessary to determine the acceptability to the Department of Defense of proposals included in an application for an energy project submitted pursuant to such section.

“(3) The Clearinghouse shall perform such other functions as the Secretary of Defense assigns.

“(c) Review of proposed actions.— (1) Not later than 30 days after receiving from the Secretary of Transportation a proper application for an energy project under section 44718 of title 49 that may have an adverse impact on military operations and readiness, the Clearinghouse shall conduct a preliminary review of such application. The review shall—

“(A) assess the likely scope, duration, and level of risk of any adverse impact of such energy project on military operations and readiness; and

“(B) identify any feasible and affordable actions that could be taken by the Department, the developer of such energy project, or others to mitigate the adverse impact and to minimize risks to national security while allowing the energy project to proceed with development.

“(2) If the Clearinghouse determines under paragraph (1) that an energy project will have an adverse impact on military operations and readiness, the Clearinghouse shall issue to the applicant a notice of presumed risk that describes the concerns identified by the Department in the preliminary review and requests a discussion of possible mitigation actions.

“(3) At the same time that the Clearinghouse issues to the applicant a notice of presumed risk under paragraph (2), the Clearinghouse shall provide the same notice to the governor of the State in which the project is located and request that the governor provide the Clearinghouse any comments the governor believes of relevance to the application. The Secretary of Defense shall consider the comments of the governor in the Secretary’s evaluation of whether the project presents an unacceptable risk to the national security of the United States and shall include the comments with the determination provided to the Secretary of Transportation pursuant to section 44718(f) of title 49.

“(4) The Clearinghouse shall develop, in coordination with other departments and agencies of the Federal Government, an integrated review process to ensure timely notification and consideration of energy projects filed with the Secretary of Transportation pursuant to section 44718 of title 49 that may have an adverse impact on military operations and readiness.

“(5) The Clearinghouse shall establish procedures for the Department of Defense for the coordinated consideration of and response to a request for a review received from another Federal agency, a State government, an Indian tribal government, a local government, a landowner, or the developer of an energy project, including guidance to personnel at each military installation in the United States on how to initiate such procedures and ensure a coordinated Department response.

“(6) The Clearinghouse shall develop procedures for conducting early outreach to parties carrying out energy projects that could have an adverse impact on military operations and readiness and to clearly communicate to such parties actions being taken by the Department of Defense under this section. The procedures shall provide for filing by such parties of a project area and preliminary project layout at least one year before expected construction of any project proposed within a military training route or within line-of-sight of any air route surveillance radar or airport surveillance radar operated or used by the Department of Defense in order to provide adequate time for analysis and negotiation of mitigation options. Material marked as proprietary or competition sensitive by a party filing for this preliminary review shall be protected from public release by the Department of Defense.

“(d) Comprehensive review.— (1) The Secretary of Defense shall develop a comprehensive strategy for addressing the military impacts of projects filed with the Secretary of Transportation pursuant to section 44718 of title 49.

“(2) In developing the strategy required by paragraph (1), the Secretary shall—

“(A) assess of the magnitude of interference posed by projects filed with the Secretary of Transportation pursuant to section 44718 of title 49;

“(B) for the purpose of informing preliminary reviews under subsection (c)(1) and early outreach efforts under subsection (c)(5), identify geographic areas selected as proposed locations for projects filed, or which may be filed in the future, with the Secretary of Transportation pursuant to section 44718 of title 49 where such projects could have an adverse impact on military operations and readiness and categorize the risk of adverse impact in such areas; and

“(C) specifically identify feasible and affordable long-term actions that may be taken to mitigate adverse impacts of projects filed, or which may be filed in the future, with the Secretary of Transportation pursuant to section 44718 of title 49, on military operations and readiness, including—

“(i) investment priorities of the Department of Defense with respect to research and development;

“(ii) modifications to military operations to accommodate applications for such projects;

“(iii) recommended upgrades or modifications to existing systems or procedures by the Department of Defense;

“(iv) acquisition of new systems by the Department and other departments and agencies of the Federal Government and timelines for fielding such new systems; and

“(v) modifications to the projects for which such applications are filed, including changes in size, location, or technology.

“(e) Department of defense determination of unacceptable risk.— (1) The Secretary of Defense may not object to an energy project filed with the Secretary of Transportation pursuant to section 44718 of title 49, except in a case in which the Secretary of Defense determines, after giving full consideration to mitigation actions identified pursuant to this section, that such project, in isolation or cumulatively with other projects, would result in an unacceptable risk to the national security of the United States. Such a determination shall constitute a finding pursuant to section 44718(f) of title 49.

“(2) (A) Not later than 30 days after making a determination of unacceptable risk under paragraph (1), the Secretary of Defense shall submit to the congressional defense committees a report on such determination and the basis for such determination. Such report shall include an explanation of the operational impact that led to the determination, a discussion of the mitigation options considered, and an explanation of why the mitigation options were not feasible or did not resolve the conflict. The Secretary of Defense may provide public notice through the Federal Register of the determination.

“(B) The Secretary of Defense shall notify the appropriate State agency of a determination made under paragraph (1).

“(3) The Secretary of Defense may only delegate the responsibility for making a determination of unacceptable risk under paragraph (1) to the Deputy Secretary of Defense, an under secretary of defense, or a deputy under secretary of defense.

“(f) Authority to accept contributions of funds.—The Secretary of Defense is authorized to request and accept a voluntary contribution of funds from an applicant for a project filed with the Secretary of Transportation pursuant to section 44718 of title 49. Amounts so accepted shall remain available until expended for the purpose of offsetting the cost of measures undertaken by the Secretary of Defense to mitigate adverse impacts of such a project on military operations and readiness or to conduct studies of potential measures to mitigate such impacts.

“(g) Effect of Department of Defense hazard assessment.—An action taken pursuant to this section shall not be considered to be a substitute for any assessment or determination required of the Secretary of Transportation under section 44718 of title 49.

“(h) Savings clause.—Nothing in this section shall be construed to affect or limit the application of, or any obligation to comply with, any environmental law, including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

“(i) Definitions.—In this section:

“(1) The term ‘adverse impact on military operations and readiness’ means any adverse impact upon military operations and readiness, including flight operations, research, development, testing, and evaluation, and training, that is demonstrable and is likely to impair or degrade the ability of the armed forces to perform their warfighting missions.

“(2) The term ‘energy project’ means a project that provides for the generation or transmission of electrical energy.

“(3) The term ‘landowner’ means a person that owns a fee interest in real property on which a proposed energy project is planned to be located.

“(4) The term ‘military installation’ has the meaning given that term in section 2801(c)(4) of this title.

“(5) The term ‘military readiness’ includes any training or operation that could be related to combat readiness, including testing and evaluation activities.

“(6) The term ‘military training route’ means a training route developed as part of the Military Training Route Program, carried out jointly by the Federal Aviation Administration and the Secretary of Defense, for use by the armed forces for the purpose of conducting low-altitude, high-speed military training.

“(7) The term ‘unacceptable risk to the national security of the United States’ means the construction, alteration, establishment, or expansion, or the proposed construction, alteration, establishment, or expansion, of a structure or sanitary landfill that would—

“(A) significantly endanger safety in air commerce, related to the activities of the Department of Defense;

“(B) significantly interfere with the efficient use and preservation of the navigable airspace and of airport traffic capacity at public-use airports, related to the activities of the Department of Defense; or

“(C) significantly impair or degrade the capability of the Department of Defense to conduct training, research, development, testing, and evaluation, and operations or to maintain military readiness.”.

(b) Conforming and clerical amendments.—

(1) REPEAL OF EXISTING PROVISION.—Section 358 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (49 U.S.C. 44718 note) is repealed.

(2) CROSS-REFERENCE IN TITLE 49, UNITED STATES CODE.—Section 44718(f) of title 49, United States Code, is amended by inserting “and in accordance with section 183a(e) of title 10” after “conducted under subsection (b)”.

(3) REFERENCE TO REGULATIONS.—Section 44718(g) of title 49, United States Code, is amended by striking “211.3 of title 32, Code of Federal Regulations, as in effect on January 6, 2014” both places it appears and inserting “183a(i) of title 10”.

(4) TABLE OF SECTIONS AMENDMENT.—The table of sections at the beginning of chapter 7 of title 10 is amended by inserting after the item relating to section 183 the following new item:


“183a. Defense Siting Clearinghouse for review of mission obstructions.”.

(c) Applicability of existing rules and regulations.—Notwithstanding the amendments made by subsection (a), any rule or regulation promulgated to carry out section 358 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (49 U.S.C. 44718 note), that is in effect on the day before the date of the enactment of this Act shall continue in effect and apply to the extent such rule or regulation is consistent with the authority under section 183a of title 10, United States Code, as added by subsection (a), until such rule or regulation is otherwise amended or repealed.

SEC. 332. Temporary installation reutilization authority for arsenals, depots, and plants.

(a) Modified authority.—In the case of a military manufacturing arsenal, depot, or plant, the Secretary of the Army may authorize leases and contracts under section 2667 of title 10, United States Code, for a term of up to 25 years, notwithstanding subsection (b)(1) of such section, if the Secretary determines that a lease or contract of that duration will promote the national defense for the purpose of—

(1) helping to maintain the viability of the military manufacturing arsenal, depot, or plant and any military installations on which it is located;

(2) eliminating, or at least reducing, the cost of Government ownership of the military manufacturing arsenal, depot, or plant, including the costs of operations and maintenance, the costs of environmental remediation, and other costs; and

(3) leveraging private investment at the military manufacturing arsenal, depot, or plant through long-term facility use contracts, property management contracts, leases, or other agreements that support and advance the preceding purposes.

(b) Delegation and review process.—

(1) IN GENERAL.—The Secretary of the Army may delegate the authority provided by this section to the commander of the major subordinate command of the Army that has responsibility for the military manufacturing arsenal, depot, or plant or, if part of a larger military installation, the installation as a whole. The commander may approve a lease or contract under such authority on a case-by-case basis or a class basis.

(2) NOTICE OF APPROVAL.—Upon any approval of a lease or contract by a commander pursuant to a delegation of authority under paragraph (1), the commander shall notify the Army real property manager and Congress of the approval.

(3) REVIEW PERIOD.—Any lease or contract that is approved utilizing the delegation authority under paragraph (1) is subject to a 90-day hold period so that the Army real property manager may review the lease or contract pursuant to paragraph (4).

(4) DISPOSITION OF REVIEW.—If the Army real property manager disapproves of a contract or lease submitted for review under paragraph (3), the agreement shall be null and void upon transmittal by the real property manager to the delegating authority of a written disapproval, including a justification for such disapproval, within the 90-day hold period. If no such disapproval is transmitted within the 90-day hold period, the agreement shall be deemed approved.

(5) APPROVAL OF REVISED AGREEMENT.—If, not later than 60 days after receiving a disapproval under paragraph (4), the delegating authority submits to the Army real property manager a new contract or lease that addresses the concerns of the Army real property manager outlined in such disapproval, the new contract or lease shall be deemed approved unless the Army real property manager transmits to the delegating authority a disapproval of the new contract or lease within 30 days of such submission.

(c) Military manufacturing arsenal, depot, or plant defined.—In this section, the term “military manufacturing arsenal, depot, or plant” means a Government-owned, Government-operated defense plant of the Army that manufactures weapons, weapon components, or both.

(d) Sunset.—The authority under this section shall terminate at the close of September 30, 2020. Any contracts entered into on or before such date shall continue in effect according to their terms.

SEC. 333. Pilot program for operation and maintenance budget presentation.

(a) In general.—Along with the budget for fiscal years 2019, 2020, and 2021 submitted by the President pursuant to section 1105(a) of title 31, United States Code, the Secretary of Defense and the Secretaries of the military departments shall submit to the Committees on Armed Services of the Senate and the House of Representatives an annex for the following Operation and Maintenance sub-activity groups (SAG):

(1) For the Army:

(A) SAG 111 – Maneuver Units.

(B) SAG 123 – Land Forces Depot Maintenance.

(C) SAG 131 – Base Operations Support.

(D) SAG 322 – Flight Training.

(2) For the Navy:

(A) SAG 1A5A – Aircraft Depot Maintenance.

(B) SAG 1B1B – Mission and Other Ship Operations.

(C) SAG 1B4B – Ship Depot Maintenance.

(D) SAG BSS1 – Base Operating Support.

(3) For the Marine Corps:

(A) SAG 1A1A – Operational Forces.

(B) SAG 1A3A – Depot Maintenance.

(C) SAG 1B1B – Field Logistics.

(D) SAG BSS1 – Base Operating Support.

(4) For the Air Force:

(A) SAG 011A – Primary Combat Forces.

(B) SAG 011Y – Flying Hour Program.

(C) SAG 011Z – Base Support.

(D) SAG 021M – Depot Maintenance.

(b) Elements.—The annex required under subsection (a) shall include the following elements:

(1) A summary by appropriation account with subtotals for Department of Defense components.

(2) A summary of each appropriation account by budget activity, activity group, and sub-activity group with budget activity and activity group subtotals and an appropriation total.

(3) A detailed sub-activity group by program element and expense aggregate listing in budget activity and activity group sequence.

(4) A rollup document by sub-activity group with accompanying program element funding with the PB-61 program element tags included.

(5) A summary of each depot maintenance facility with information on workload, work force, sources of funding, and expenses similar to the exhibit on Mission Funded Naval Shipyards included with the 2012 Navy Budget Justification.

(6) A summary of contractor logistics support for each program element, including a measure of workload and unit cost.

(c) Formatting.—The annex required under subsection (a) shall be formatted in accordance with relevant Department of Defense financial management regulations that provide guidance for budget submissions to Congress.

SEC. 334. Servicewomen's commemorative partnerships.

(a) In general.—The Secretary of Defense may provide not more than $5,000,000 in financial support for the acquisition, installation, and maintenance of exhibits, facilities, historical displays, and programs at military service memorials and museums that highlight the role of women in the military. The Secretary may enter into a contract, partnership, or grant with a non-profit organization for the purpose of performing such acquisition, installation, and maintenance.

(b) Purposes.—The contracts, partnerships, or grants shall be limited to serving the purposes of—

(1) preserving the history of the 3,000,000 women who have served in the United States Armed Forces;

(2) managing an archive of artifacts, historic memorabilia, and documents related to servicewomen;

(3) maintaining a women veterans’ oral history program; and

(4) conducting other educational programs related to women in service.

SEC. 335. Authority for agreements to reimburse States for costs of suppressing wildfires on State lands caused by Department of Defense activities under leases and other grants of access to State lands.

Section 2691 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(d) The Secretary of Defense may, in any lease, permit, license, or other grant of access for use of lands owned by a State, agree to reimburse the State for the reasonable costs of the State in suppressing wildland fires caused by the activities of the Department of Defense under such lease, permit, license, or other grant of access.”.

SEC. 336. Repurposing and reuse of surplus Army firearms.

(a) Required transfer.—Not later than 90 days after the date of the enactment of this Act, and subject to subsection (c), the Secretary of the Army shall transfer to Rock Island Arsenal all excess firearms, related spare parts and components, small arms ammunition, and ammunition components currently stored at Defense Distribution Depot, Anniston, Alabama, that are no longer actively issued for military service and that are otherwise prohibited from commercial sale, or distribution, under Federal law.

(b) Repurposing and reuse.—The items specified for transfer under subsection (a) shall be melted and repurposed for military use as determined by the Secretary of the Army, including—

(1) the reforging of new firearms or their components; and

(2) force protection barriers and security bollards.

(c) Items exempt from transfer.—M–1 Garand, caliber .45 M1911/M1911A1 pistols, and caliber .22 rimfire rifles are not subject to the transfer requirement under subsection (a).

SEC. 337. Department of the Navy marksmanship awards.

Section 40728 of title 36, United States Code, is amended by adding at the end the following new subsection:

“(i) Authorized navy transfers.— (1) Notwithstanding subsections (a) and (b), the Secretary of the Navy may transfer to the corporation, in accordance with the procedures prescribed in this subchapter, M–1 Garand and caliber .22 rimfire rifles held within the inventories of the United States Navy and the United States Marine Corps and stored at Defense Distribution Depot, Anniston, Alabama, or Naval Surface Warfare Center, Crane, Indiana, as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 2018.

“(2) The items specified for transfer under paragraph (1) shall be used as awards for competitors in marksmanship competitions held by the United States Marine Corps or the United States Navy and may not be resold.”.

subtitle EEnergy and Environment

SEC. 341. Authority to carry out environmental restoration activities at National Guard and Reserve locations.

Section 2701(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(5) AUTHORITY TO CARRY OUT ACTIVITIES AT NATIONAL GUARD AND RESERVE LOCATIONS.—The Secretary may carry out activities under this section at National Guard and Reserve locations.”.

SEC. 342. Special considerations for energy performance goals.

Section 2911(c) of title 10, United States Code, is amended—

(1) in paragraph (1), by inserting “and to reduce the future demand and the requirements for the use of energy” after “consumption of energy”;

(2) in paragraph (2), by striking “to reduce the future demand and the requirements for the use of energy” and inserting “to enhance energy resilience to ensure the Department of Defense has the ability to prepare for and recover from energy disruptions that impact mission assurance on military installations”; and

(3) by adding at the end the following new paragraph:

“(13) Opportunities to leverage third-party financing to address installation energy needs.”.

SEC. 343. Centers for Disease Control study on health implications of per- and polyfluoroalkyl substances contamination in drinking water.

(a) In general.—The Secretary of Health and Human Services, acting through the Centers for Disease Control and Prevention and the Agency for Toxic Substances and Disease Registry and in consultation with the Department of Defense, shall—

(1) commence a study on the human health implications of per- and polyfluoroalkyl substances (PFAS) contamination in drinking water, ground water, and any other sources of water and relevant exposure vectors, including the cumulative human health implications of multiple types of PFAS contamination at levels above and below health advisory levels;

(2) not later than 5 years after the date of enactment of this Act (or 7 years after such date of enactment after providing notice to the appropriate congressional committees of the need for the delay)—

(A) complete such study and make any appropriate recommendations; and

(B) submit a report to the appropriate congressional committees on the results of such study; and

(3) not later than one year after the date of the enactment of this Act, and annually thereafter until submission of the report under paragraph (2)(B), submit to the appropriate congressional committees a report on the progress of the study.

(b) Authorization of appropriations.—

(1) AUTHORIZATION.—There is authorized to be appropriated $7,000,000 to carry out this section.

(2) OFFSET.—The amount authorized to be appropriated for fiscal year 2018 for the Department of Defense by section 301 for operation and maintenance is hereby reduced by $7,000,000, with the amount of such decrease to be allocated to operation and maintenance, Navy, SAG BSIT, as specified in the funding tables in section 4301.

(c) Appropriate congressional committees defined.—In this section, the term “appropriate congressional committees” means—

(1) the congressional defense committees;

(2) the Committee on Heath, Education, Labor, and Pensions and the Committee on Veterans' Affairs of the Senate; and

(3) the Committee on Energy and Commerce and the Committee on Veterans' Affairs of the House of Representatives.

SEC. 344. Environmental oversight and remediation at Red Hill Bulk Fuel Storage Facility.

(a) Sense of Congress.—It is the sense of Congress that—

(1) the Red Hill Bulk Fuel Storage Facility located on Oahu, Hawaii is a national strategic asset that—

(A) supports combatant commander theater security requirements;

(B) supports contingency operations;

(C) provides essential and timely support to the United States and allies’ military mobilizations and disaster response efforts in the Indo-Asia-Pacific and around the world; and

(D) is routinely used to support normal transit of Navy and Air Force movements in the region;

(2) the facility in its current form cannot be replicated anywhere else in the world;

(3) moving the fuel to another storage facility in the Indo-Asia-Pacific would have implications for the United States military force structure in the State of Hawaii and put at risk billions of dollars in annual economic activity that the Armed Forces bring to the State of Hawaii;

(4) if the facility were closed, the United States Armed Forces would be unable to support the National Military Strategy, including the goals of the United States Pacific Commander, and national security interests would be significantly undermined;

(5) constant vigilance is required to ensure that facility degradation and fuel leaks do not pose a threat to the people of Hawaii, especially the drinking water on Oahu; and

(6) despite its importance, the facility continues to face long-term challenges without robust and consistent funding that provides the Navy and the Defense Logistics Agency with the resources needed to improve the tanks and associated infrastructure.

(b) Budget submissions.—

(1) ANNUAL BUDGET JUSTIFICATION.—The Secretary of Defense, in consultation with the Secretary of the Navy, shall ensure that the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) includes a description of how the Department will use funds to support any deliverables that the parties of the Administrative Order on Consent/Statement of Work have identified as necessary to mitigate and prevent fuel leaks at the Red Hill Bulk Fuel Storage Facility on Oahu, Hawaii.

(2) FUTURE YEARS DEFENSE BUDGET.—The Secretary of Defense, in consultation with the Secretary of the Navy, shall ensure that each future-years defense program submitted to Congress under section 221 of title 10, United States Code, describes how the Department will use funds to support any deliverables that the parties of the Administrative Order on Consent/Statement of Work have identified as necessary to mitigate and prevent fuel leaks at the Red Hill Bulk Fuel Storage Facility on Oahu, Hawaii, in the period covered by the future-years defense program.

(c) Administrative Order on Consent/Statement of Work defined.—In this section, the term “Administrative Order on Consent/Statement of Work” means a legally enforceable agreement between the United States Department of the Navy (Navy), the Defense Logistics Agency (DLA), the United States Environmental Protection Agency (EPA), Region 9, and the State of Hawaii Department of Health (DOH) that the parties voluntarily entered into on September 28, 2015 [EPA DKT NO. RCRA 7003–R9–2015–01/DOH DKT NO. 15–UST–EA–01].

TITLE IVMilitary Personnel Authorizations

subtitle AActive Forces

SEC. 401. End strengths for active forces.

The Armed Forces are authorized strengths for active duty personnel as of September 30, 2018, as follows:

(1) The Army, 481,000.

(2) The Navy, 327,900.

(3) The Marine Corps, 186,000.

(4) The Air Force, 325,100.

subtitle BReserve 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, 2018, as follows:

(1) The Army National Guard of the United States, 343,500.

(2) The Army Reserve, 199,500.

(3) The Navy Reserve, 59,000.

(4) The Marine Corps Reserve, 38,500.

(5) The Air National Guard of the United States, 106,600.

(6) The Air Force Reserve, 69,800.

(7) The Coast Guard Reserve, 7,000.

(b) End strength reductions.—The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately reduced by—

(1) the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year; and

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

(c) End strength increases.—Whenever units or individual members of the Selected Reserve of 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, 2018, 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, 10,101.

(4) The Marine Corps Reserve, 2,261.

(5) The Air National Guard of the United States, 16,260.

(6) The Air Force Reserve, 3,588.

SEC. 413. End strengths for military technicians (dual status).

The minimum number of military technicians (dual status) as of the last day of fiscal year 2018 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, 22,294.

(2) For the Army Reserve, 6,492.

(3) For the Air National Guard of the United States, 19,135.

(4) For the Air Force Reserve, 8,880.

SEC. 414. Fiscal year 2018 limitation on number of non-dual status technicians.

(a) Limitations.—

(1) NATIONAL GUARD.—The number of non-dual status technicians employed by the National Guard as of September 30, 2018, may not exceed the following:

(A) For the Army National Guard of the United States, 0.

(B) For the Air National Guard of the United States, 0.

(2) ARMY RESERVE.—The number of non-dual status technicians employed by the Army Reserve as of September 30, 2018, may not exceed 0.

(3) AIR FORCE RESERVE.—The number of non-dual status technicians employed by the Air Force Reserve as of September 30, 2018, may not exceed 0.

(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 2018, 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. Number of members of the National Guard on full-time duty in support of the reserves within the National Guard Bureau.

Within the personnel authorized by paragraphs (1) and (5) of section 412, the number of personnel under each such paragraph who may serve with the National Guard Bureau may not exceed the number equal to six percent of the number authorized by such paragraph.

subtitle CAuthorization of Appropriations

SEC. 421. Military personnel.

(a) Authorization of appropriations.—Funds are hereby authorized to be appropriated for fiscal year 2018 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 2018.

TITLE VMilitary Personnel Policy

subtitle AOfficer Personnel Policy

SEC. 501. Clarification of baselines for authorized numbers of general and flag officers on active duty and in joint duty assignments.

(a) Active-duty baseline.—Subsection (h)(2) of section 526 of title 10, United States Code, is amended by striking “the lower of” and all that follows and inserting “the statutory limit of general officers or flag officers of that armed force under subsection (a).”.

(b) Joint duty assignment baseline.—Subsection (i)(2) of such section is amended by striking “the lower of” and all that follows and inserting “the statutory limit on general officer and flag officer positions that are joint duty assignments under subsection (b)(1).”.

SEC. 502. Authority of promotion boards to recommend officers of particular merit be placed at the top of the promotion list.

(a) Authority of promotion boards To recommend officers of particular merit Be placed at top of promotion list.—Section 616 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(g) (1) In selecting the officers to be recommended for promotion, a selection board may, when authorized by the Secretary of the military department concerned, recommend officers of particular merit, from among those officers selected for promotion, to be placed at the top of the promotion list promulgated by the Secretary under section 624(a)(1) of this title.

“(2) The number of such officers placed at the top of the promotion list may not exceed the number equal to 20 percent of the maximum number of officers that the board is authorized to recommend for promotion in such competitive category. If the number determined under this subsection is less than one, the board may recommend one such officer.

“(3) No officer may be recommended to be placed at the top of the promotion list unless the officer receives the recommendation of at least a majority of the members of a board for such placement.

“(4) For the officers recommended to be placed at the top of the promotion list, the board shall recommend the order in which these officers should be promoted.”.

(b) Officers of particular merit appearing at top of promotion list.—Section 624(a)(1) of such title is amended by inserting “, except such officers of particular merit who were approved by the President and recommended by the board to be placed at the top of the promotion list under section 616(g) of this title as these officers shall be placed at the top of the promotion list in the order recommended by the board” after “officers on the active-duty list”.

SEC. 503. Clarification to exception for removal of officers from list of officers recommended for promotion after 18 months without appointment.

Section 629(c)(3) of title 10, United States Code, is amended by striking “the Senate is not able to obtain the information necessary” and inserting “the military department concerned is not able to obtain and provide to the Senate the information the Senate requires”.

SEC. 504. Flexibility in promotion of officers to positions of Staff Judge Advocate to the Commandant of the Marine Corps and Deputy Judge Advocate General of the Navy.

(a) Staff Judge Advocate to Commandant of the Marine Corps.—Section 5046(b) of title 10, United States Code, is amended—

(1) by inserting “(1)” after “(b)”; and

(2) by adding at the end the following new paragraph:

“(2) If the Secretary of the Navy elects to convene a selection board under section 611(a) of this title to consider eligible officers for selection to appointment as Staff Judge Advocate, the Secretary may, in connection with such consideration for selection—

“(A) treat any section in chapter 36 of this title referring to promotion to the next higher grade as if such section referred to promotion to a higher grade; and

“(B) waive section 619(a)(2) of this title if the Secretary determines that the needs of the Marine Corps require the waiver.”.

(b) Deputy Judge Advocate General of the Navy.—Section 5149(a) of such title is amended by adding at the end the following new paragraph:

“(3) If the Secretary of the Navy elects to convene a selection board under section 611(a) of this title to consider eligible officers for selection to appointment as Deputy Judge Advocate General, the Secretary may, in connection with such consideration for selection—

“(A) treat any section in chapter 36 of this title referring to promotion to the next higher grade as if such section referred to promotion to a higher grade; and

“(B) waive section 619(a)(2) of this title if the Secretary determines that the needs of the Navy require the waiver.”.

SEC. 505. Repeal of requirement for specification of number of officers who may be recommended for early retirement by a Selective Early Retirement Board.

Section 638a of title 10, United States Code, is amended—

(1) in subsection (c)—

(A) by striking paragraph (1); and

(B) by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively; and

(2) in subsection (d)—

(A) by striking paragraph (2); and

(B) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

SEC. 506. Extension of service-in-grade waiver authority for voluntary retirement of certain general and flag officers for purposes of enhanced flexibility in officer personnel management.

Section 1370(a)(2)(G) of title 10, United States Code, is amended by striking “2017” and inserting “2025”.

SEC. 507. Inclusion of Principal Military Deputy to the Assistant Secretary of the Army for Acquisition, Technology, and Logistics among officers subject to repeal of statutory specification of general officer grade.

Section 3016(b)(5)(B) of title 10, United States Code, is amended by striking “a lieutenant general” and inserting “an officer”.

SEC. 508. Clarification of effect of repeal of statutory specification of general or flag officer grade for various positions in the Armed Forces.

(a) Retention of grade of incumbents in positions on effective date.—Effective as of December 23, 2016, and as if included in the enactment of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) to which it relates, section 502 of that Act (130 Stat. 2102) is amended by adding at the end the following new subsection:

“(tt) Retention of grade of incumbents in positions on effective date.—The grade of service of an officer serving as of the date of the enactment of this Act in a position whose statutory grade is affected by an amendment made by this section may not be reduced after that date by reason of such amendment as long as the officer remains in continuous service in such position after that date.”.

(b) Clarifying amendment to Chief of Veterinary Corps of the Army repeal.—Section 3084 of title 10, United States Code, is amended by striking the last sentence.

SEC. 509. Grandfathering of retired grade of Assistant Judge Advocates General of the Navy as of repeal of statutory specification of general and flag officers grades in the Armed Forces.

(a) In general.—Notwithstanding the amendments made by section 502(gg)(2) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), the officer holding a position specified in subsection (b) as of December 23, 2016, in the grade of rear admiral (lower half) or brigadier general, as applicable, may be retired after that date in such grade with the retired pay of such grade (unless entitled to higher pay under another provision of law).

(b) Specified positions.—The positions specified in this subsection are the following:

(1) The Assistant Judge Advocate General of the Navy provided for by section 5149(b) of title 10, United States Code.

(2) The Assistant Judge Advocate General of the Navy provided for by section 5149(c) of title 10, United States Code.

SEC. 510. Service credit for cyberspace experience or advanced education upon original appointment as a commissioned officer.

(a) Original appointment as a reserve officer.—Section 12207 of title 10, United States Code, is amended—

(1) in subsection (a)(2), by inserting “or (e)” after “subsection (b)”;

(2) by redesignating subsections (e) and (f) as subsections (f) and (g), respectively;

(3) by inserting after subsection (d) the following new subsection (e):

“(e) (1) Under regulations prescribed by the Secretary of Defense, if the Secretary of a military department determines that the number of commissioned officers with cyberspace-related experience or advanced education in reserve active-status in an armed force under the jurisdiction of such Secretary is critically below the number needed, such Secretary may credit any person receiving an original appointment as a reserve commissioned officer with a period of constructive service for the following:

“(A) Special experience or training in a particular cyberspace-related field if such experience or training is directly related to the operational needs of the armed force concerned.

“(B) Any period of advanced education in a cyberspace-related field beyond the baccalaureate degree level if such advanced education is directly related to the operational needs of the armed force concerned.

“(2) Constructive service credited an officer under this subsection shall not exceed one year for each year of special experience, training, or advanced education, and not more than three years total constructive service may be credited.

“(3) Constructive service credited an officer under this subsection is in addition to any service credited that officer under subsection (a) and shall be credited at the time of the original appointment of the officer.

“(4) The authority to award constructive service credit under this subsection expires on December 31, 2023.”; and

(4) in subsection (f), as redesignated by paragraph (2), by striking “or (d)” and inserting “, (d), or (e)”.

(b) Extension of authority in connection with original appointment of regular officers.—Section 533(g)(4) of such title is amended by striking “December 31, 2018” and inserting “December 31, 2023”.

SEC. 510A. Authority for officers to opt-out of promotion board consideration.

(a) Active-duty list officers.—Section 619 of title 10, United States Code, is amended—

(1) in subsection (d), by adding at the end the following new paragraph:

“(6) An officer excluded under subsection (e).”; and

(2) by adding at the end the following new subsection:

“(e) Authority to permit officers to opt out of selection board consideration.—The Secretary of Defense may authorize the Secretary of a military department to provide that an officer under the jurisdiction of that Secretary may, upon the officer's request and with the approval of the Secretary concerned, be excluded from consideration by a selection board convened under section 611(a) of this title to consider officers for promotion to the next higher grade. The Secretary concerned may only approve such a request if—

“(1) the basis for the request is to allow an officer to complete a broadening assignment, advanced education, another assignment of significant value to the Department of Defense, or a career progression requirement delayed by the assignment of education;

“(2) the Secretary concerned determines the exclusion from consideration is in the best interest of the military department concerned; and

“(3) the officer has not previously failed of selection for promotion to the grade for which the officer requests the exclusion from consideration.”.

(b) Reserve active-status list officers.—Section 14301 of such title is amended—

(1) in subsection (c)—

(A) in the subsection heading, by striking “previously selected officers not eligible” and inserting “certain officers not”; and

(B) by adding at the end the following new paragraph:

“(6) An officer excluded under subsection (j).”; and

(2) by adding at the end the following new subsection:

“(j) Authority to permit officers to opt out of selection board consideration.—The Secretary of Defense may authorize the Secretary of a military department to provide that an officer under the jurisdiction of that Secretary may, upon the officer's request and with the approval of the Secretary concerned, be excluded from consideration by a selection board convened under section 14101(a) of this title to consider officers for promotion to the next higher grade. The Secretary concerned may only approve such a request if—

“(1) the basis for the request is to allow an officer to complete a broadening assignment, advanced education, another assignment of significant value to the Department of Defense, or a career progression requirement delayed by the assignment or education;

“(2) the Secretary concerned determines the exclusion from consideration is in the best interest of the military department concerned; and

“(3) the officer has not previously failed of selection for promotion to the grade for which the officer requests the exclusion from consideration.”.

SEC. 510B. Reauthorization of authority to order retired members to active duty in high-demand, low-density assignments.

Section 688a(f) of title 10, United States Code, is amended by striking “after December 21, 2011.” and inserting “outside a period as follows:

“(1) The period beginning on December 2, 2002, and ending on December 31, 2011.

“(2) The period beginning on the date of the enactment of the National Defense Authorization Act for Fiscal Year 2018 and ending on December 31, 2022.”.

subtitle BReserve Component Management

SEC. 511. Consolidation of authorities to order members of the reserve components of the Armed Forces to perform duty.

Section 515 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 810) is amended—

(1) in the second sentence of subsection (b), by striking “such legislation as would be necessary to amend titles 10, 14, 32, and 37 of the United States Code and other provisions of law in order to implement the Secretary's approach by October 1, 2018” and inserting “legislation implementing the alternate approach by April 30, 2019”; and

(2) by adding at the end the following new subsection:

“(c) Attributes of alternate approach.—The Secretary of Defense shall ensure the alternate approach described in subsection (b)—

“(1) reduces the number of statutory authorities by which members of the reserve components of the Armed Forces may be ordered to perform duty to not more than 8 statutory authorities grouped into 4 duty categories to which specific pay and benefits may be aligned, which categories shall include—

“(A) one duty category that shall generally reflect active service performed in support of contingency type operations or other military actions in support of the commander of a combatant command;

“(B) a second duty category that shall—

“(i) generally reflect active service not described in subparagraph (A); and

“(ii) consist of training, administration, operational support, and full-time support of the reserve components;

“(C) a third duty category that shall—

“(i) generally reflect duty performed under direct military supervision while not in active service; and

“(ii) include duty characterized by partial-day service; and

“(D) a fourth duty category that shall—

“(i) generally reflect remote duty completed while not under direct military supervision; and

“(ii) include completion of correspondence courses and telework;

“(2) distinguishes among duty performed under titles 10, 14, and 32, United States Code, and ensures that the reasons the members of the reserve components are utilized under the statutory authorities which exist prior to the alternate approach are preserved and can be tracked as separate and distinct purposes;

“(3) minimizes, to the maximum extent practicable, disruptions in pay and benefits for members, and adheres to the principle that a member should receive pay and benefits commensurate with the nature and performance of the member’s duties;

“(4) ensures the Secretary has the flexibility to meet emerging requirements and to effectively manage the force; and

“(5) aligns Department of Defense programming and budgeting to the types of duty members perform.”.

SEC. 512. Establishment of Office of Complex Investigations within the National Guard Bureau.

(a) Establishment.—Chapter 1101 of title 10, United States Code, is amended by adding at the end the following new section:

§ 10509. Office of Complex Investigations

“(a) In general.—There is in the National Guard Bureau an Office of Complex Investigations (in this section referred to as the ‘Office’) under the authority, direction, and control of the Chief of the National Guard Bureau.

“(b) Disposition and functions.—The Office shall be organized, trained, equipped, and managed to conduct administrative investigations in order to assist the States in the organization, maintenance, and operation of the National Guard as follows:

“(1) In investigations of allegations of sexual assault involving members of the National Guard.

“(2) In investigations in circumstances involving members of the National Guard in which other law enforcement agencies within the Department of Defense do not have, or have limited, jurisdiction or authority to investigate.

“(3) In investigations in such other circumstances involving members of the National Guard as the Chief of the National Guard Bureau may direct.

“(c) Scope of investigative authority.—Individuals performing investigations described in subsection (b)(1) are authorized—

“(1) to have access to all records, reports, audits, reviews, documents, papers, recommendations, or other material available to the applicable establishment which relate to programs and operations with respect to the National Guard; and

“(2) to request such information or assistance as may be necessary for carrying out those duties from any Federal, State, or local governmental agency or unit thereof.”.

(b) Clerical amendment.—The table of sections at the beginning of chapter 1101 of such title is amended by adding at the end the following new item:


“10509. Office of Complex Investigations.”.

subtitle CGeneral Service Authorities

SEC. 516. Report on policies for regular and reserve officer career management.

(a) Report required.—Not later than March 1, 2018, 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 a review, undertaken by the Secretary for purposes of the report, of the policies of the Department of Defense for the career management of regular and reserve officers of the Armed Forces pursuant to the Defense Officer Personnel Management Act (commonly referred to as “DOPMA”) and the Reserve Officer Personnel Management Act (commonly referred to as “ROPMA”).

(b) Elements.—The report required by subsection (a) shall include recommendations for the following:

(1) Mechanisms to increase the ability of officers to repeatedly transition between active duty and reserve active-status throughout the course of their military careers.

(2) Mechanisms to provide the Armed Forces additional flexibility in managing the populations of officers in the grades of major, lieutenant colonel, and colonel and Navy grades of lieutenant commander, commander, and captain.

(3) Mechanisms to use the modernized retirement system provided by part I of subtitle D of title VI of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92) to encourage officers to pursue careers of lengths that vary from the traditional 20-year military career.

(4) Mechanisms to provide for alternative career tracks for officers that encourage and facilitate the recruitment and retention of officers with technical expertise.

(5) Mechanisms for a career and promotion path for officers in cyber-related specialties.

(6) Mechanism to ensure the officer corps does not become disproportionately weighted toward officers serving in the grades of major, lieutenant colonel, and colonel and Navy grades of lieutenant commander, commander, and captain.

(7) Any other mechanisms or matters the Secretary considers appropriate to improve the effective recruitment, management, and retention of regular and reserve officers of the Armed Forces.

(c) Scope of report.—If any recommendation of the Secretary in the report required by subsection (a) requires legislative or administrative action for implementation, the report shall include a proposal for legislative action, or a description of administrative action, as applicable, to implement such recommendation.

SEC. 517. Responsibility of Chiefs of Staff of the Armed Forces for standards and qualifications for military specialties within the Armed Forces.

(a) In general.—Except as provided in subsection (d), responsibility within an Armed Force for establishing, approving, and modifying the criteria, standards, and qualifications for military speciality codes within that Armed Force shall be vested solely in the Chief of Staff of that Armed Force.

(b) Military specialty codes.—For purposes of this section, a military specialty code is as follows:

(1) A Military Occupational Speciality Code (MOS) and any other military specialty or military occupational specialty of the Army, in the case of the Army.

(2) A Naval Enlisted Code (NEC), Unrestricted Duty code, Restricted Duty code, Restricted Line duty code, Staff Corps code, Limited Duty code, Warrant Officer code, and any other military specialty or military occupational specialty of the Navy, in the case of the Navy.

(3) An Air Force Specialty Code (AFSC) and any other military specialty or military occupational specialty of the Air Force, in the case of the Air Force.

(4) A Military Occupational Speciality Code (MOS) and any other military specialty or military occupational specialty of the Marine Corps, in the case of the Marine Corps.

(c) Chief of Staff for Marine Corps.—For purposes of this section, the Commandant of the Marine Corps shall be deemed to be the Chief of Staff of the Marine Corps.

(d) Gender integration.—Nothing in this section shall be construed to terminate, alter, or revise the authority of the Secretary of Defense to establish, approve, modify, or otherwise regulate gender-based criteria, standards, and qualifications for military specialties within the Armed Forces.

SEC. 518. Confidential review of characterization of terms of discharge of members of the Armed Forces who are survivors of sexual assault.

(a) Codification of current confidential process.—

(1) CODIFICATION.—Chapter 79 of title 10, United States Code, is amended by inserting after section 1554a a new section 1554b consisting of—

(A) a heading as follows:

§ 1554b. Confidential review of characterization of terms of discharge of members of the armed forces who are survivors of sex-related offenses”; and

(B) a text consisting of the text of section 547 of the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015 (Public Law 113–291; 128 Stat. 3375; 10 U.S.C. 1553 note).

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 79 of such title is amended by inserting after the item relating to section 1554a the following new item:


“1554b. Confidential review of characterization of terms of discharge of members of the armed forces who are survivors of sex-related offenses.”.

(3) CONFORMING REPEAL.—Section 547 of the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015 is repealed.

(b) Terminology.—Subsection (a) of section 1554b of title 10, United States Code, as added by subsection (a) of this section, is amended by striking “victim” each place it appears and inserting “survivor”.

(c) Clarification of applicability to individuals who allege they were a survivor of a sex-related offense during military service.—Subsection (a) of such section 1554b, as so added, is further amended by inserting after “sex-related offense” the following: “, or alleges that the individual was the survivor of a sex-related offense,”.

(d) Conforming amendments.—Such section 1554b, as so added, is further amended—

(1) by striking “Armed Forces” each place it appears in subsections (a) and (b) and inserting “armed forces”;

(2) in subsection (a)—

(A) by striking “boards for the correction of military records of the military department concerned” and inserting “boards of the military department concerned established in accordance with this chapter”; and

(B) by striking “such an offense” and inserting “a sex-related offense”;

(3) in subsection (b), by striking “boards for the correction of military records” and inserting “boards of the military department concerned established in accordance with this chapter”; and

(4) in subsection (d)—

(A) in paragraph (1), by striking “title 10, United States Code” and inserting “this title”; and

(B) in paragraphs (2) and (3), by striking “such title” and inserting “this title”.

SEC. 519. Improvements to certain authorities and procedures of discharge review boards.

(a) Repeal of 15-year statute of limitations on motions or requests for review.—Subsection (a) of section 1553 of title 10, United States Code, is amended by striking the second sentence.

(b) Telephonic presentation of evidence.—Subsection (c) of such section is amended in the second sentence by striking “or by affidavit” and inserting “, by affidavit, or by telephone or video conference (to the extent reasonable and technically feasible)”.

(c) Effective date.—The amendments made by this section shall take effect on October 1, 2018.

SEC. 520. Public availability of information related to disposition of claims regarding discharge or release of members of the Armed Forces when the claims involve sexual assault.

(a) Boards for the correction of military records.—Section 1552(h) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(4) The number and disposition of claims decided during the calendar quarter preceding the calendar quarter in which such information is made available in which sexual assault is alleged to have contributed, whether in whole or in part, to the original characterization of the discharge or release of the claimant.”.

(b) Discharge review boards.—Section 1553(f) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(4) The number and disposition of claims decided during the calendar quarter preceding the calendar quarter in which such information is made available in which sexual assault is alleged to have contributed, whether in whole or in part, to the original characterization of the discharge or release of the former member.”.

subtitle DMilitary Justice Matters

SEC. 521. Revision to Manual for Courts-Martial with respect to dissemination of visual depictions of private areas or sexually explicit conduct without the consent of the person depicted.

(a) Requirement To enumerate offense for purposes of general punitive article.—Not later than 180 days after the date of the enactment of this Act, part IV of the Manual for Courts-Martial shall be amended to include as an enumerated offense under section 934 of title 10, United States Code (article 134 of the Uniform Code of Military Justice), the distribution of a visual depiction of the private area of a person or of sexually explicit conduct involving a person that was—

(1) photographed, videotaped, filmed, or recorded by any means with the consent of such person; and

(2) distributed by another person who knew or should have known that the depicted person did not consent to such distribution.

(b) Private area defined.—In this section, the term “private area” has the meaning given the term in section 920c(d) of title 10, United States Code (article 120c(d) of the Uniform Code of Military Justice).

SEC. 522. Technical and conforming amendments in connection with reform of the Uniform Code of Military Justice.

(a) Articles 1, 6b, and 137.—

(1) Section 801 of title 10, United States Code (article 1 of the Uniform Code of Military Justice), is amended in the matter preceding paragraph (1) by striking “chapter:” and inserting “chapter (the Uniform Code of Military Justice):”.

(2) Section 806b(b) of title 10, United States Code (article 6b(b) of the Uniform Code of Military Justice), is amended by striking “(the Uniform Code of Military Justice)”.

(3) Section 937 of title 10, United States Code (article 137 of the Uniform Code of Military Justice), as amended by section 5503 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is further amended by striking “(the Uniform Code of Military Justice)” each place it appears as follows:

(A) In subsection (a)(1), in the matter preceding subparagraph (A).

(B) In subsection (b), in the matter preceding subparagraph (A).

(C) In subsection (d), in the matter preceding paragraph (1).

(b) Article 6b.—Section 806b(e)(3) of title 10, United States Code (article 6b(e)(3) of the Uniform Code of Military Justice), is amended—

(1) by inserting after “President,” the following: “subject to section 830a of this title (article 30a).”;

(2) by striking “and, to the extent practicable,” and inserting “To the extent practicable, such a petition”; and

(3) by striking “before the court.” and inserting “before the Court of Criminal Appeals.”.

(c) Article 30a.—Subsection (a)(1) of section 830a of title 10, United States Code (article 30a of the Uniform Code of Military Justice), as added by section 5202 of the National Defense Authorization Act for Fiscal Year 2017, is amended—

(1) in the matter preceding subparagraph (A), by inserting “, or otherwise act on,” after “to review”; and

(2) by adding at the end the following new subparagraph:

“(D) Pre-referral matters under subsections (c) and (e) of section 806b of this title (article 6b).”.

(d) Article 39.—Subsection (a)(4) of section 839 of title 10, United States Code (article 39 of the Uniform Code of Military Justice), as amended by section 5222(1) of the National Defense Authorization Act for Fiscal Year 2017, is amended by striking “in non-capital cases unless the accused requests sentencing by members under section 825 of this title (article 25)” and inserting “under section 853(b)(1) of this title (article 53(b)(1))”.

(e) Article 43.—Subsection (i) of section 843 of title 10, United States Code (article 43 of the Uniform Code of Military Justice), as added by section 5225(c) of the National Defense Authorization Act for Fiscal Year 2017, is amended by striking “Dna Evidence.—” and inserting “DNA Evidence.—”.

(f) Article 48.—Subsection (c)(1) of section 848 of title 10, United States Code (article 48 of the Uniform Code of Military Justice), as amended by section 5230 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking “section 866(g) of this title (article 66(g))” and inserting “section 866(h) of this title (article 66(h))”.

(g) Article 53.—Subsection (b)(1)(B) of section 853 of title 10, United States Code (article 53 of the Uniform Code of Military Justice), as amended by section 5236 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking “in a trial”.

(h) Article 53a.—Subsection (d) of section 853a of title 10, United States Code (article 53a of the Uniform Code of Military Justice), as added by section 5237 of the National Defense Authorization Act for Fiscal Year 2017, is amended by striking “military judge” the second place it appears and inserting “court-martial”.

(i) Article 56.—Subsection (d)(1) of section 856 of title 10, United States Code (article 56 of the Uniform Code of Military Justice), as amended by section 5301 of the National Defense Authorization Act for Fiscal Year 2017, is further amended—

(1) in the matter preceding subparagraph (A), by inserting after “concerned,” the following: “under standards and procedures set forth in regulations prescribed by the President,”; and

(2) in subparagraph (B), by inserting after “(B)” the following: “as determined in accordance with standards and procedures prescribed by the President,”.

(j) Article 58a.—

(1) Subsection (a) of section 858a of title 10, United States Code (article 58a of the Uniform Code of Military Justice), as amended by section 5303(1) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the matter after paragraph (3) by inserting after “reduces” the following: “, if such a reduction is authorized by regulation prescribed by the President,”.

(2) The heading of such section (article) is amended to read as follows:

§ 858a. Art 58a. Sentences: reduction in enlisted grade”.

(k) Article 58b.—Subsection (b) of section 858b of title 10, United States Code (article 58b of the Uniform Code of Military Justice), is amended in the first sentence by striking “section 860 of this title (article 60)” and inserting “section 860a or 860b of this title (article 60a or 60b)”.

(l) Article 62.—Subsection (b) of section 862 of title 10, United States Code (article 62 of the Uniform Code of Military Justice), is amended by striking “, notwithstanding section 866(c) of this title (article 66(c))”.

(m) Article 63.—Subsection (b) of section 863 of title 10, United States Code (article 63 of the Uniform Code of Military Justice), as added by section 5327 of the National Defense Authorization Act for Fiscal Year 2017, is amended by striking the period at the end and inserting “, subject to such limitations as the President may prescribe by regulation.”.

(n) Article 64.—Subsection (a) of section 864 of title 10, United States Code (article 64 of the Uniform Code of Military Justice), as amended by section 5328(a) of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking “(a) (a) In general.—” and inserting “(a) In general.—”.

(o) Article 65.—Subsection (b)(1) of section 865 of title 10, United States Code (article 65 of the Uniform Code of Military Justice), as amended by section 5329 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking “section 866(b)(2) of this title (article 66(b)(2))” and inserting “section 866(b)(3) of this title (article 66(b)(3))”.

(p) Article 66.—Subsection (e)(2)(C) of section 866 of title 10, United States Code (article 66 of the Uniform Code of Military Justice), as amended by section 5330 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by inserting after “required” the following: “by regulation prescribed by the President or”.

(q) Article 69.—Subsection (c)(1)(A) of section 869 of title 10, United States Code (article 69 of the Uniform Code of Military Justice), as amended by section 5233 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by inserting a comma after “in part”.

(r) Article 82.—Subsection (b) of section 882 of title 10, United States Code (article 82 of the Uniform Code of Military Justice), as amended by section 5403 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking “section 99” and inserting “section 899”.

(s) Article 103a.—Section 8312(b)(2)(A) of title 5, United States Code, is amended by striking “article 106a” and inserting “article 103a”.

(t) Article 119a.—Subsection (b) of section 919a of title 10, United States Code (article 119a of the Uniform Code of Military Justice), as amended by section 5401(13)(B) of the National Defense Authorization Act for Fiscal Year 2017, is further amended—

(1) by striking “928a, 926, and 928” and inserting “926, 928, and 928a”; and

(2) by striking “128a 126, and 128” and inserting “126, 128, and 128a”.

(u) Article 120.—Subsection (g)(2) of section 920 of title 10, United States Code (article 120 of the Uniform Code of Military Justice), as amended by section 5430(b) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the first sentence by striking “brest” and inserting “breast”.

(v) Article 128.—Subsection (b)(2) of section 928 of title 10, United States Code (article 128 of the Uniform Code of Military Justice), as amended by section 5441 of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking the comma after “substantial bodily harm”.

(w) Article 132.—Subsection (b)(2) of section 932 of title 10, United States Code (article 132 of the Uniform Code of Military Justice), as added by section 5450 of the National Defense Authorization Act for Fiscal Year 2017, is amended by striking “section 1034(h)” and inserting “section 1034(j)”.

(x) Article 146.—Subsection (f) of section 946 of title 10, United States Code (article 146 of the Uniform Code of Military Justice), as amended by section 5521 of the National Defense Authorization Act for Fiscal Year 2017, is further amended—

(1) in paragraph (2), by striking the sentence beginning “Not later than” and inserting the following new sentence: “The analysis under this paragraph shall be included in the assessment required by paragraph (1).”; and

(2) by striking paragraph (5) and inserting the following new paragraph (5):

“(5) REPORTS.—With respect to each review and assessment under this subsection, the Panel shall submit a report to the Committees on Armed Services of the Senate and the House of Representatives. Each report—

“(A) shall set forth the results of the review and assessment concerned, including the findings and recommendations of the Panel; and

“(B) shall be submitted not later than December 31 of the calendar year in which the review and assessment is concluded.”.

(y) Tables of sections.—

(1) The table of sections at the beginning of subchapter II of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(1) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the items relating to sections 810 and 812 (articles 10 and 12) by striking “Art.”.

(2) The table of sections at the beginning of subchapter V of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(2) of the National Defense Authorization Act for Fiscal Year 2017, is further amended—

(A) by striking “825.” the second place it appears and inserting “825a.”; and

(B) in the items relating to sections 825a, 826a, and 829 (articles 25a, 26a, and 29), by striking “Art.”.

(3) The table of sections at the beginning of subchapter VI of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(3) of the National Defense Authorization Act for Fiscal Year 2017, is further amended—

(A) by striking “830.” the second place it appears and inserting “830a.”; and

(B) in the items relating to sections 830a and 832 through 835 (articles 30a and 32 through 35), by striking “Art.”.

(4) The table of sections at the beginning of subchapter VII of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(4) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the items relating to sections 846 through 848, 850, 852, 853, and 853a (articles 46 through 48, 50, 52, 53, and 53a) by striking “Art.”.

(5) The table of sections at the beginning of subchapter VIII of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(5) of the National Defense Authorization Act for Fiscal Year 2017, is further amended by striking the item relating to section 858a (article 58a) and inserting the following new item:


“858a. 58a. Sentences: reduction in enlisted grade.”.

(6) The table of sections at the beginning of subchapter IX of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(6) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the items relating to sections 860 through 861, 864 through 866, and 869 (articles 60 through 61, 64 through 66, and 69) by striking “Art.”.

(7) The table of sections at the beginning of subchapter X of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5452 of the National Defense Authorization Act for Fiscal Year 2017, is further amended—

(A) in the items relating to sections 877 through 934 (articles 77 through 134), by striking “Art.”;

(B) in the item relating to section 887a (article 87a), by striking “Resistence” and inserting “Resistance”;

(C) in the item relating to section 908 (article 108), by striking “of the United States–Loss” and inserting “of United States–Loss,”; and

(D) in the item relating to section 909 (article 109), by striking “of the” and inserting “of”.

(8) The table of sections at the beginning of subchapter XI of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(7) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the items relating to sections 936 and 940a (articles 136 and 140a) by striking “Art.”.

(9) The table of sections at the beginning of subchapter XII of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), as amended by section 5541(8) of the National Defense Authorization Act for Fiscal Year 2017, is further amended in the items relating to sections 946 and 946a (articles 146 and 146a) by striking “Art.”.

(z) Other provisions of title 10 in connection with UCMJ reform.—

(1) Section 673(a) of title 10, United States Code, is amended by striking “section 920, 920a, or 920c of this title (article 120, 120a, or 120c of the Uniform Code of Military Justice)” and inserting “section 920, 920c, or 930 of this title (article 120, 120c, or 130 of the Uniform Code of Military Justice)”.

(2) Section 674(a) of such title is amended by striking “section 920, 920a, 920b, 920c, or 925 of this title (article 120, 120a, 120b, 120c, or 125 of the Uniform Code of Military Justice)” and inserting “section 920, 920b, 920c, or 930 of this title (article 120, 120b, 120c, or 130 of the Uniform Code of Military Justice)”.

(3) Section 1034(c)(2)(A) of such title is amended by striking “sections 920 through 920c of this title (articles 120 through 120c of the Uniform Code of Military Justice)” and inserting “section 920, 920b, 920c, or 930 of this title (article 120, 120b, 120c, or 130 of the Uniform Code of Military Justice)”.

(4) Section 1044e(g)(1) of such title is amended by striking “section 920, 920a, 920b, 920c, or 925 of this title (article 120, 120a, 120b, 120c, or 125 of the Uniform Code of Military Justice)” and inserting “section 920, 920b, 920c, or 930 of this title (article 120, 120b, 120c, or 130 of the Uniform Code of Military Justice)”.

(5) Section 1059(e) of such title is amended—

(A) in paragraph (1)(A)(ii), by striking “the approval of” and all that follows through “as approved,” and inserting “entry of judgment under section 860c of this title (article 60c of the Uniform Code of Military Justice) if the sentence”; and

(B) in paragraph (3)(A), by striking “by a court-martial” the second place it appears and all that follows through “include any such punishment,” and inserting “for a dependent-abuse offense and the conviction is disapproved or is otherwise not part of the judgment under section 860c of this title (article 60c of the Uniform Code of Military Justice) or the punishment is disapproved or is otherwise not part of the judgment under such section (article),”.

(6) Section 1408(h)(10)(A) of such title is amended by striking “the approval” and all that follows and inserting “entry of judgment under section 860c of this title (article 60c of the Uniform Code of Military Justice).”.

(aa) Effective date.—The amendments made by this section shall take effect immediately after the coming into effect of the amendments made by division E of the National Defense Authorization Act for Fiscal Year 2017, as provided for in section 5542 of that Act.

SEC. 523. Priority of review by Court of Appeals for the Armed Forces of decisions of Courts of Criminal Appeals on petitions for enforcement of victims' rights.

(a) Priority.—Section 806b(e)(3) of title 10, United States Code (article 6b(e)(3) of the Uniform Code of Military Justice), as amended by section 522(b) of this Act, is further amended by adding at the end the following new sentence: “Review of any decision on such a petition by the Court of Appeals for the Armed Forces shall have priority in the Court of Appeals for the Armed Forces, as determined under the rules of the Court of Appeals for the Armed Forces.”.

(b) Effective date.—The amendment made by subsection (a) shall take effect immediately after the coming into effect of the following (in the order specified):

(1) The amendments made by division E of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), as provided for in section 5542 of that Act.

(2) The amendments made by section 522(b) of this Act, as provided in section 522(aa) of this Act.

SEC. 524. Assistance of defense counsel in additional post-trial matters for accused convicted by court-martial.

(a) Assistance.—Subsection (c)(2) of section 838 of title 10, United States Code (article 38 of the Uniform Code of Military Justice), is amended by striking “section 860 of this title (article 60)” and inserting “section 860, 860a, or 860b of this title (article 60, 60a, or 60b)”.

(b) Effective date.—The amendment made by subsection (a) shall take effect immediately after the coming into effect of the amendments made by division E of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), as provided for in section 5542 of that Act.

SEC. 525. Enumeration of additional limitations on acceptance of plea agreements by military judges of general or special courts-martial.

(a) In general.—Subsection (b) of section 853a of title 10, United States Code (article 53a of the Uniform Code of Military Justice), as added by section 5237 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is amended—

(1) in paragraph (2), by striking “or” after the semicolon;

(2) in paragraph (3), by striking the period and inserting a semicolon; and

(3) by adding at the end the following new paragraphs:

“(4) is prohibited by law; or

“(5) is contrary to, or is inconsistent with, a regulation prescribed by the President with respect to terms, conditions, or other aspects of plea agreements.”.

(b) Effective date.—The amendments made by subsection (a) shall take effect immediately after the coming into effect of the amendments made by division E of the National Defense Authorization Act for Fiscal Year 2017, as provided for in section 5542 of that Act.

SEC. 526. Additional proceedings by Courts of Criminal Appeals by order of United States Court of Appeals for the Armed Forces.

(a) In general.—Subsection (f)(3) of section 866 of title 10, United States Code (article 66 of the Uniform Code of Military Justice), as amended by section 5330 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is further amended—

(1) by inserting after “Court” the first place it appears the following: “of Criminal Appeals”; and

(2) by adding at the end the following new sentence: “If the Court of Appeals for the Armed Forces determines that additional proceedings are warranted, the Court of Criminal Appeals shall order a hearing or other proceeding in accordance with the direction of the Court of Appeals for the Armed Forces.”.

(b) Effective date.—The amendments made by subsection (a) shall take effect immediately after the coming into effect of the amendments made by division E of the National Defense Authorization Act for Fiscal Year 2017, as provided for in section 5542 of that Act.

SEC. 527. Clarification of applicability and effective dates for statute of limitations amendments in connection with Uniform Code of Military Justice Reform.

(a) Applicability of certain amendments.—Effective as of December 23, 2016, and immediately after the enactment of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), to which such amendment relates, section 5225(f) of that Act is amended by striking “this subsection” and inserting “this section”.

(b) Child abuse offenses.—With respect to offenses committed before the date designated by the President under section 5542(a) of the National Defense Authorization Act for Fiscal Year 2017, subsection (b)(2)(B) of section 843 of title 10, United States Code (article 43 of the Uniform Code of Military Justice), shall be applied as in effect on December 22, 2016.

(c) Fraudulent enlistment or appointment offenses.—With respect to the period beginning on the date of the enactment of the National Defense Authorization Act for Fiscal Year 2017 and ending on the day before the date designated by the President under section 5542(a) of that Act, in the application of subsection (h) of section 843 of title 10, United States Code (article 43 of the Uniform Code of Military Justice), as added by section 5225(b) of that Act, the reference in such subsection (h) to section 904a(1) of title 10, United States Code (article 104a(1) of the Uniform Code of Military Justice), shall be deemed to be a reference to section 883(1) of title 10, United States Code (article 83(1) of the Uniform Code of Military Justice).

SEC. 528. Modification of year of initial review by Military Justice Review Panel of Uniform Code of Military Justice reform amendments.

(a) In general.—Subsection (f)(1) of section 946 of title 10, United States Code (article 146 of the Uniform Code of Military Justice), as amended by section 5521 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is further amended by striking “fiscal year 2020” and inserting “fiscal year 2021”.

(b) Effective date.—The amendment made by subsection (a) shall take effect immediately after the coming into effect of the amendments made by division E of the National Defense Authorization Act for Fiscal Year 2017, as provided for in section 5542 of that Act.

SEC. 529. Clarification of applicability of certain provisions of law to civilian judges of the United States Court of Military Commission Review.

Section 950f(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(5) (A) For purposes of sections 203, 205, 207, 208, and 209 of title 18, the term ‘special Government employee’ shall include a judge of the Court appointed under paragraph (3).

“(B) A person appointed as a judge of the Court under paragraph (3) shall be considered to be an officer or employee of the United States with respect to such person's status as a judge, but only during periods in which such person is performing the duties of such a judge. Any provision of law that prohibits or limits the political or business activities of an employee of the United States shall only apply to such a judge during such periods.”.

SEC. 530. Enhancement of effective prosecution and defense in courts-martial and related matters.

(a) Additional element in program for effective prosecution and defense.—Subsection (a)(1) of section 542 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2126; 10 U.S.C. 827 note) is amended by inserting before the semicolon the following: “or there is adequate supervision and oversight of trial counsel and defense counsel so detailed to ensure effective prosecution and defense in the court-martial”.

(b) Assignment of civilian employees to supervise less experienced judge advocates in prosecution and defense.—Such section is further amended—

(1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and

(2) by inserting after subsection (b) the following new subsection (c):

“(c) Assignment of civilian employees to supervise less experienced judge advocates in prosecution and defense.—

“(1) ASSIGNMENT AUTHORIZED.—The Secretary concerned may assign the function of supervising and overseeing prosecution or defense in courts-martial by less experienced judge advocates to civilian employees of the military department concerned or the Department of Homeland Security, as applicable, who have extensive litigation expertise.

“(2) STATUS AS SUPERVISOR.—A civilian employee assigned to supervise and oversee the prosecution or defense in a court-martial pursuant to this subsection is not required to be detailed to the case, but must be reasonably available for consultation during court-martial proceedings.”.

(c) Pilot programs on professional developmental process for judge advocates.—Subsection (d) of such section, as redesignated by subsection (b)(1) of this section, is amended—

(1) in paragraph (1), striking “establishing” and all that follows and inserting “a military justice career track for judge advocates under the jurisdiction of the Secretary.”;

(2) by redesignating paragraph (4) as paragraph (5); and

(3) by inserting after paragraph (3) the following new paragraph (4):

“(4) ELEMENTS.—Each pilot program shall include the following:

“(A) A military justice career track for judge advocates that leads to judge advocates with military justice expertise in the grade of colonel, or in the grade of captain in the case of judge advocates of the Navy.

“(B) The use of skill identifiers to identify judge advocates for participation in the pilot program from among judge advocates having appropriate skill and experience in military justice matters.

“(C) Guidance for promotion boards considering the selection for promotion of officers participating in the pilot program in order to ensure that judge advocates who are participating in the pilot program have the same opportunity for promotion as all other judge advocate officers being considered for promotion by such boards.

“(D) Such other matters as the Secretary concerned considers appropriate.”.

SEC. 531. Court of Appeals for the Armed Forces jurisdiction to review interlocutory appeals of decisions on certain petitions for writs of mandamus.

Section 806b(e) of title 10, United States Code (article 6b(e) of the Uniform Code of Military Justice), is amended—

(1) in paragraph (1), by striking “paragraph (4)”and inserting “paragraph (5)”;

(2) by redesignating paragraph (4) as paragraph (5); and

(3) by inserting after paragraph (3) the following new paragraph (4):

“(4) The Court of Appeals for the Armed Forces may review for legal error a grant or denial of a petition for a writ of mandamus under this subsection by the Court of Criminal Appeals, upon petition of a victim of an offense under this chapter or of the accused, and on good cause shown. Any such review shall, to the extent practicable, have priority over all other proceedings of the Court of Appeals.”.

SEC. 532. Punitive article on wrongful broadcast or distribution of intimate visual images or visual images of sexually explicit conduct under the Uniform Code of Military Justice.

(a) Prohibition.—Subchapter X of chapter 47 of title 10, United States Code, is amended by inserting after section 917 (article 117 of the Uniform Code of Military Justice) the following new section (article):

§ 917a. Art. 117a. Wrongful broadcast or distribution of intimate visual images

“(a) Prohibition.—Any person subject to this chapter who—

“(1) knowingly and wrongfully broadcasts or distributes an intimate visual image of another person or a visual image of sexually explicit conduct involving a person who—

“(A) is at least 18 years of age at the time the intimate visual image or visual image of sexually explicit conduct was created;

“(B) is identifiable from the intimate visual image or visual image of sexually explicit conduct itself, or from information displayed in connection with the intimate visual image or visual image of sexually explicit conduct; and

“(C) does not explicitly consent to the broadcast or distribution of the intimate visual image or visual image of sexually explicit conduct;

“(2) knows or reasonably should have known that the intimate visual image or visual image of sexually explicit conduct was made under circumstances in which the person depicted in the intimate visual image or visual image of sexually explicit conduct retained a reasonable expectation of privacy regarding any broadcast or distribution of the intimate visual image or visual image of sexually explicit conduct; and

“(3) knows or reasonably should have known that the broadcast or distribution of the intimate visual image or visual image of sexually explicit conduct is likely—

“(A) to cause harm, harassment, intimidation, emotional distress, or financial loss for the person depicted in the intimate visual image or visual image of sexually explicit conduct; or

“(B) to harm substantially the depicted person with respect to that person’s health, safety, business, calling, career, financial condition, reputation, or personal relationships,

is guilty of wrongful distribution of intimate visual images or visual images of sexually explicit conduct and shall be punished as a court-martial may direct.

“(b) Definitions.—In this section (article):

“(1) BROADCAST.—The term ‘broadcast’ means to electronically transmit a visual image with the intent that it be viewed by a person or persons.

“(2) DISTRIBUTE.—The term ‘distribute’ means to deliver to the actual or constructive possession of another person, including transmission by mail or electronic means.

“(3) INTIMATE VISUAL IMAGE.—The term ‘intimate visual image’ means a visual image that depicts a private area of a person.

“(4) PRIVATE AREA.—The term ‘private area’ means the naked or underwear-clad genitalia, anus, buttocks, or female areola or nipple.

“(5) REASONABLE EXPECTATION OF PRIVACY.—The term ‘reasonable expectation of privacy’ refers to circumstances in which a reasonable person would believe that an intimate visual image of the person, or a visual image of sexually explicit conduct involving the person, would not be broadcast or distributed to another person.

“(6) SEXUALLY EXPLICIT CONDUCT.—The term ‘sexually explicit conduct’ means actual or simulated genital-genital contact, oral-genital contact, anal-genital contact, or oral-anal contact, whether between persons of the same or opposite sex, bestiality, masturbation, or sadistic or masochistic abuse.

“(7) VISUAL IMAGE.—The term ‘visual image’ means the following:

“(A) Any developed or undeveloped photograph, picture, film or video.

“(B) Any digital or computer image, picture, film, or video made by any means, including those transmitted by any means, including streaming media, even if not stored in a permanent format.

“(C) Any digital or electronic data capable of conversion into a visual image.”.

(b) Clerical amendment.—The table of sections at the beginning of subchapter X of chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), is amended by inserting after the item relating to section 917 (article 117) the following new item:


“917a. 117a. Wrongful broadcast or distribution of intimate visual images.”.

subtitle EMember Education, Training, Transition, and Resilience

SEC. 541. Ready, Relevant Learning initiative of the Navy.

(a) Certifications required.—Not later than October 1, 2017, and each year thereafter, the Secretary of the Navy shall submit to the Committees on Armed Services of the Senate and House of Representatives a certification on the status of implementation of the Ready, Relevant Learning initiative of the Navy for each applicable enlisted rating.

(b) Elements.—Each certification under subsection (a) shall include the following:

(1) A certification by the Commander of the United States Fleet Forces Command that the block learning and modernized delivery methods of the Ready, Relevant Learning initiative to be implemented during the fiscal year beginning in which such certification is submitted will meet or exceed the existing training delivery approach for all associated training requirements.

(2) A certification by the Secretary that the content re-engineering necessary to meet all training objectives and transition from the traditional training curriculum to the modernized delivery format to be implemented during such fiscal year will be complete prior to such transition, including full functionality of all required course software and hardware.

(3) A detailed cost estimate of transitioning to the block learning and modernized delivery approaches to be implemented during such fiscal year with funding listed by purpose, amount, appropriations account, budget program element or line item, and end strength adjustments.

(4) A detailed phasing plan associated with transitioning to the block learning and modernized delivery approaches to be implemented during such fiscal year, including the current status, timing, and identification of reductions in “A” school and “C” school courses, curricula, funding, and personnel.

(5) A certification by the Secretary that—

(A) the contracting strategy associated with transitioning to the modernized delivery approach to be implemented during such fiscal year has been completed; and

(B) contracting actions contain sufficient specification detail to enable a low risk approach to receiving the deliverable end item or items on-budget, on-schedule, and with satisfactory performance.

SEC. 542. Element in preseparation counseling for members of the Armed Forces on assistance and support services for caregivers of certain veterans through the Department of Veterans Affairs.

(a) In general.—Section 1142(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(18) A description, developed in consultation with the Secretary of Veterans Affairs, of the assistance and support services for family caregivers of eligible veterans under the program conducted by the Secretary of Veterans Affairs pursuant to section 1720G of title 38, including the veterans covered by the program, the caregivers eligible for assistance and support through the program, and the assistance and support available through the program.”.

(b) Participation of potential caregivers in appropriate preseparation counseling.—

(1) IN GENERAL.—In accordance with procedures established by the Secretary of Defense, each Secretary of a military department shall take appropriate actions to achieve the following:

(A) To determine whether each member of the Armed Forces under the jurisdiction of such Secretary who is undergoing preseparation counseling pursuant to section 1142 of title 10, United States Code (as amended by subsection (a)), and who may require caregiver services after separation from the Armed Forces has identified an individual to provide such services after the member's separation.

(B) In the case of a member described in subparagraph (A) who has identified an individual to provide caregiver services after the member's separation, at the election of the member, to permit such individual to participate in appropriate sessions of the member's preseparation counseling in order to inform such individual of—

(i) the assistance and support services available to caregivers of members after separation from the Armed Forces; and

(ii) the manner in which the member's transition to civilian life after separation may likely affect such individual as a caregiver.

(2) CAREGIVERS.—For purposes of this subsection, individuals who provide caregiver services refers to individuals (including a spouse, partner, parent, sibling, adult child, other relative, or friend) who provide physical or emotional assistance to former members of the Armed Forces during and after their transition from military life to civilian life following separation from the Armed Forces.

(3) DEADLINE FOR COMMENCEMENT.—Each Secretary of a miliary department shall commence the actions required pursuant to this subsection by not later than 180 days after the date of the enactment of this Act.

SEC. 543. Discharge in the Selected Reserve of the commissioned service obligation of military service academy graduates who participate in professional athletics.

(a) United States Military Academy.—Section 4348(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(5) That, if upon graduation the cadet obtains employment as a professional athlete in lieu of the acceptance of an appointment tendered under paragraph (2), the cadet—

“(A) will accept an appointment as a commissioned officer as a Reserve in the Army for service in the Army Reserve; and

“(B) will remain in that reserve component as a member of the Selected Reserve until completion of the commissioned service obligation of the cadet.”.

(b) United States Naval Academy.—Section 6959(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(5) That, if upon graduation the midshipman obtains employment as a professional athlete in lieu of the acceptance of an appointment tendered under paragraph (2), the midshipman—

“(A) will accept an appointment as a commissioned officer as a Reserve in the Navy for service in the Navy Reserve or the Marine Corps Reserve; and

“(B) will remain in that reserve component as a member of the Selected Reserve until completion of the commissioned service obligation of the midshipman.”.

(c) United States Air Force Academy.—Section 9348(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(5) That, if upon graduation the cadet obtains employment as a professional athlete in lieu of the acceptance of an appointment tendered under paragraph (2), the cadet—

“(A) will accept an appointment as a commissioned officer as a Reserve in the Air Force for service in the Air Force Reserve; and

“(B) will remain in that reserve component as a member of the Selected Reserve until completion of the commissioned service obligation of the cadet.”.

(d) Application of amendments.—The Secretaries of the military departments shall promptly revise the cadet and midshipman service agreements under sections 4348, 6959, and 9348 of title 10, United States Code, to reflect the amendments made by this section. The revised agreement shall apply to cadets and midshipmen who are attending the United States Military Academy, the United States Naval Academy, or the United States Air Force Academy on the date of the enactment of this Act and to persons who begin attendance at such military service academies on or after that date.

SEC. 544. Pilot programs on appointment in the excepted service in the Department of Defense of physically disqualified former cadets and midshipmen.

(a) Pilot programs authorized.—

(1) IN GENERAL.—Each Secretary of a military department may carry out a pilot program under which former cadets or midshipmen described in paragraph (2) (in this section referred to as “eligible individuals”) under the jurisdiction of such Secretary may be appointed by the Secretary of Defense in the excepted service under section 3320 of title 5, United States Code, in the Department of Defense.

(2) CADETS AND MIDSHIPMEN.—Except as provided in paragraph (3), a former cadet or midshipman described in this paragraph is any former cadet at the United States Military Academy or the United States Air Force Academy, and any former midshipman at the United States Naval Academy, who—

(A) completed the prescribed course of instruction and graduated from the applicable service academy; and

(B) is determined to be medically disqualified to complete a period of active duty in the Armed Forces prescribed in an agreement signed by such cadet or midshipman in accordance with section 4348, 6959, or 9348 of title 10, United States Code.

(3) EXCEPTION.—A former cadet or midshipman whose medical disqualification as described in paragraph (2)(B) is the result of the gross negligence or misconduct of the former cadet or midshipman is not an eligible individual for purposes of appointment under a pilot program.

(b) Purpose.—The purpose of the pilot programs is to evaluate the feasibility and advisability of permitting eligible individuals who cannot accept a commission or complete a period of active duty in the Armed Forces prescribed by the Secretary of the military department concerned to fulfill an obligation for active duty service in the Armed Forces through service as a civilian employee of the Department of Defense

(c) Positions.—

(1) IN GENERAL.—The positions to which an eligible individual may be appointed under a pilot program are existing positions within the Department of Defense in grades up to GS–9 under the General Schedule under section 5332 of title 5, United States Code (or equivalent). The authority in subsection (a) does not authorize the creation of additional positions, or create any vacancies to which eligible individuals may be appointed under a pilot program.

(2) TERM POSITIONS.—Any appointment under a pilot program shall be to a position having a term of five years or less.

(d) Scope of authority.—

(1) RECRUITMENT AND RETENTION OF ELIGIBLE INDIVIDUALS.—The authority in subsection (a) may be used only to the extent necessary to recruit and retain on a non-competitive basis cadets and midshipmen who are relieved of an obligation for active duty in the Armed Forces due to becoming medically disqualified from serving on active duty in the Armed Forces, and may not be used to appoint any other individuals in the excepted service.

(2) VOLUNTARY ACCEPTANCE OF APPOINTMENTS.—A pilot program may not be used as an implicit or explicit basis for compelling an eligible individual to accept an appointment in the excepted service in accordance with this section.

(e) Relationship to repayment provisions.—Completion of a term appointment pursuant to a pilot program shall relieve the eligible individual concerned of any repayment obligation under section 303a(e) or 373 of title 37, United States Code, with respect to the agreement of the individual described in subsection (b)(2)(B).

(f) Termination.—

(1) IN GENERAL.—The authority to appoint eligible individuals in the excepted service under a pilot program shall expire on the date that is four years after the date of the enactment of this Act.

(2) EFFECT ON EXISTING APPOINTMENTS.—The termination by paragraph (1) of the authority in subsection (a) shall not affect any appointment made under that authority before the termination date specified in paragraph (1) in accordance with the terms of such appointment.

SEC. 545. Limitation on availability of funds for attendance of Air Force enlisted personnel at Air Force officer professional military education in-residence courses.

(a) Limitation.—None of the funds authorized to be appropriated or otherwise available for the Department of the Air Force may be obligated or expended for the purpose of the attendance of Air Force enlisted personnel at Air Force officer professional military education (PME) in-residence courses until the later of—

(1) the date on which the Secretary of the Air Force submits to the Committees on Armed Services of the Senate and the House of Representatives, and to the Comptroller General of the United States, a report on the attendance of such personnel at such courses as described in subsection (b);

(2) the date on which the Comptroller General submits to such committees the report setting forth an assessment of the report under paragraph (1) as described in subsection (c); or

(3) 180 days after the date of the enactment of this Act.

(b) Secretary of the Air Force report.—The report of the Secretary described in subsection (a)(1) shall include the following:

(1) The purpose of the attendance of Air Force enlisted personnel at Air Force officer professional military education in-residence courses.

(2) The objectives for the attendance of such enlisted personnel at such officer professional military education courses.

(3) The required prerequisites for such enlisted personnel to attend such officer professional military education courses.

(4) The process for selecting such enlisted personnel to attend such officer professional military education courses.

(5) The impact of the attendance of such enlisted personnel at such officer professional military education courses on the availability of officer allocations for the attendance of officers at such courses.

(6) The impact of the attendance of such enlisted personnel at such officer professional military education courses on the morale and retention of officers attending such courses.

(7) The resources required for such enlisted personnel to attend such officer professional military education courses.

(8) The impact on unit and overall Air Force manning levels of the attendance of such enlisted personnel at such officer professional military education courses, especially at the statutorily-limited end strengths of grades E–8 and E–9.

(9) The extent to which graduation by such enlisted personnel from such officer professional military education courses is a requirement for Air Force or joint assignments.

(10) The planned assignment utilization for Air Force enlisted graduates of such officer professional military education courses.

(11) Any other matters in connection with the attendance of such enlisted personnel at such officer professional military education courses that the Secretary considers appropriate.

(c) Comptroller General of the United States report.—

(1) IN GENERAL.—Not later than 90 days after the date the Secretary submits the report described in subsection (a)(1), the Comptroller General shall submit to the Committees on Armed Services of the Senate and the House of Representatives a briefing on an assessment of the report by the Comptroller General. As soon as practicable after the briefing, the Comptroller General shall submit to such committees a report on such assessment for purposes of subsection (a)(2).

(2) ELEMENTS.—The report under paragraph (1) shall include the following:

(A) An assessment of whether the conclusions and assertions included in the report of the Secretary under subsection (a) are comprehensive, fully supported, and sufficiently detailed.

(B) An identification of any shortcomings, limitations, or other reportable matters that affect the quality of the findings or conclusions of the report of the Secretary.

SEC. 546. Pilot program on integration of Department of Defense and non-Federal efforts for civilian employment of members of the Armed Forces following transition from active duty to civilian life.

(a) Pilot program required.—

(1) IN GENERAL.—The Secretary of Defense shall conduct a pilot program to assess the feasability and advisability of assisting members of the Armed Forces described in subsection (c) who are undergoing the transition from active duty in the Armed Forces to civilian life by accelerating and improving their access to employment following their transition to civilian life through the coordination, integration, and leveraging of existing programs and authorities of the Department of Defense for such purposes with programs and resources of State and local agencies, institutions of higher education, employers, and other public, private, and nonprofit entities applicable to the pilot program.

(2) EXISTING COMMUNITY PROGRAMS AND RESOURCES.—For purposes of this section, existing programs and resources of State and local agencies, institutions of higher education, employers, and other public, private, and nonprofit entities described in paragraph (1) in the vicinity of a location of the pilot program are referred to as the “existing community programs and resources” in that vicinity.

(b) Goals.—The goals of the pilot program shall be as follows:

(1) To facilitate the coordination of existing community programs and resources in the locations of the pilot program in order to identify a model for the coordination of such programs and authorities that can be replicated nationwide in communities in which members of the Armed Forces described in subsection (c) are undergoing the transition from active duty to civilian life.

(2) To identify mechanisms by which the Department of Defense and existing community programs and resources may work with employers and members of the Armed Forces described in subsection (c) in order to—

(A) identify workforce needs that may be satisfiable by such members following their transition to civilian life;

(B) identify military occupational skills that may satisfy the workforce needs identified pursuant to subparagraph (A); and

(C) identify gaps in the training of members of the Armed Forces that may require remediation in order to satisfy workforce needs identified pursuant to subparagraph (A), and identify mechanisms by which members of the Armed Forces described in subsection (c) may receive training to remediate such gaps.

(3) To identify mechanisms to assist members of the Armed Forces described in subsection (c) in bridging geographical gaps between their final military installations and nearby metropolitan areas in which employment and necessary training are likely to be available to such members during or following their transition to civilian life.

(c) Covered members.—The members of the Armed Forces described in this subsection are the following:

(1) Regular members of the Armed Forces who are within 180 days of discharge or release from the Armed Forces.

(2) Members of the reserve components of the Armed Forces (whether National Guard or Reserve) who are on active duty for a period of more than 365 days and are within 180 days of release from such active duty.

(d) Locations.—

(1) IN GENERAL.—The Secretary shall carry out the pilot program at not less than five locations selected by the Secretary for purposes of the pilot program.

(2) SELECTION REQUIREMENTS.—Each location selected pursuant to paragraph (1) shall—

(A) include a military installation—

(i) that has a well-established military-civilian community relationship with the civilian communities nearby; and

(ii) at which serves an appropriate population of members of the Armed Forces described in subsection (c);

(B) have a large employment or industry base that supports a variety of occupational opportunities;

(C) have appropriate institutional infrastructure for the provision of worker training; and

(D) take place in a different geographic region of the United States.

(e) Elements.—At each location selected for the pilot program there shall be the following:

(1) A mechanism to identify existing community programs and resources for participation in the pilot program, including programs and resources that are currently working with programs and authorities of the Department of Defense to assist members of the Armed Forces described in subsection (c), and, especially, programs and resources that are recognized as engaging in best practices in working with such programs and authorities of the Department.

(2) A mechanism to assess the willingness of employers in the vicinity of such location to participate in the pilot program and employ members of the Armed Forces participating in the pilot program following their transition to civilian life.

(3) A mechanism to assess the willingness of the State in which such location is located to recognize military training for credit for professional and occupational licenses.

(4) A civilian community coordinator for the pilot program, who shall be responsible for implementation and execution of the pilot program for the Department, and for coordinating existing community programs and resources, at such location by—

(A) pursuing a multi-faceted outreach and engagement strategy that leverages relationships with appropriate public, private, and nonprofit entities in the vicinity of such location for purposes of the pilot program;

(B) developing and implementing a program using existing resources, infrastructure, and experience to maximize the benefits of the pilot program for members of the Armed Forces participating in the pilot program by minimizing the time required for completion of training provided to such members under the pilot program, which program shall—

(i) compliment continuing Department efforts to assist members of the Armed Forces in their transition from active duty in the Armed Forces to civilian life and to coordinate with existing veteran employment programs for purposes of such efforts;

(ii) provide for the cultivation of a network of partners among the entities described in subparagraph (A) in order to maximize the number of opportunities for civilian employment for members of the Armed Forces participating in the pilot program following their transition to civilian life;

(iii) provide for the use of comprehensive assessments of the military experience gained by members of the Armed Forces participating in the pilot program in order to assist them in obtaining civilian employment relating to their military occupations following their transition to civilian life;

(iv) seek to secure for members of the Armed Forces participating in the pilot program maximum credit for prior military service in their pursuit of civilian employment following their transition to civilian life;

(v) seek to eliminate unnecessary and redundant elements of the training provided for purposes of the pilot program to members of the Armed Forces participating in the pilot program;

(vi) seek to minimize the time required for members of the Armed Forces participating in the pilot program in obtaining skills, credentials, or certifications required for civilian employment following their transition to civilian life; and

(vii) provide for the continuous collection of data and feedback from employers in the vicinity of such location in order to tailor training provided to members of the Armed Forces for purposes of the pilot program to meet the needs of such employers.

(5) A plan of action for delivering additional training and credentialing modules for members of the Armed Forces described in subsection (c) in order to seek to provide such members with skills that are in high demand in the vicinity and region of such location.

(f) Reports.—

(1) INITIAL REPORT.—Not later than one year after the date of the commencement 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. The report shall include, for each location selected for the pilot program pursuant to subsection (d), the following:

(A) A full description of the pilot program, including—

(i) the number of members of the Armed Forces participating in the pilot program;

(ii) the outreach to public, private, and nonprofit entities conducted for purposes of the pilot program to encourage such entities to participate in the pilot program;

(iii) the entities participating in the pilot program, set forth by employment sector;

(iv) the number of members participating in the pilot program who obtained employment with an entity participating in the pilot program, set forth by employment sector;

(v) a description of any additional training provided to members participating in the pilot program for purposes of the pilot program, including the amount of time required for such additional training; and

(vi) a description of the cost of the pilot program.

(B) A current assessment of the effect of the pilot program on Department of Defense and community efforts to assist members of the Armed Forces described in subsection (c) in obtaining civilian employment following their transition to civilian life.

(2) FINAL REPORT.—Not later than 90 days before the date on which the pilot program terminates, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives an update of the report submitted under paragraph (1).

(g) Construction.—Nothing in this section may be construed to authorize the Secretary to hire additional employees for the Department of Defense to carry out the pilot program.

(h) Termination.—The authority of the Secretary to carry out the pilot program shall terminate on the date that is two years after the date on which the pilot program commences.

SEC. 547. Two-year extension of suicide prevention and resilience program for the National Guard and Reserves.

Section 10219(g) of title 10, United States Code, is amended by striking “October 1, 2018” and inserting “October 1, 2020”.

SEC. 548. Sexual assault prevention and response training for all individuals enlisted in the Armed Forces under a delayed entry program.

(a) Training required.—Commencing not later than January 1, 2018, each Secretary concerned shall, insofar as practicable, provide training on sexual assault prevention and response to each individual under the jurisdiction of such Secretary who is enlisted in the Armed Forces under a delayed entry program such that each such individual completes such training before the date of commencement of basic training or initial active duty for training in the Armed Forces.

(b) Elements.—

(1) IN GENERAL.—The training provided pursuant to subsection (a) shall meet such requirements as the Secretary of Defense shall establish for purposes of this section. Such training shall, to the extent practicable, be uniform across the Armed Forces.

(2) SENSE OF CONGRESS ON PROVISION AND NATURE OF TRAINING.—It is the sense of Congress that the training should—

(A) be provided through in-person instruction, whenever possible; and

(B) include instruction on the proper use of social media.

(c) Definitions.—In this section:

(1) The term “delayed entry program” means the following:

(A) The Future Soldiers Program of the Army.

(B) The Delayed Entry Program of the Navy and the Marine Corps.

(C) The program of the Air Force for the delayed entry of enlistees into the Air Force.

(D) The program of the Coast Guard for the delayed entry of enlistees into the Coast Guard.

(E) Any successor program to a program referred to in subparagraphs (A) through (D).

(2) The term “Secretary concerned” has the meaning given that term in section 101(a)(9) of title 10, United States Code.

SEC. 549. Use of assistance under Department of Defense Tuition Assistance Program for non-traditional education to develop cybersecurity and computer coding skills.

(a) Briefing on use required.—Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall provide the Committees on Armed Services of the Senate and the House of Representatives a briefing on the feasability and advisability of the enactment into law of the authority described in subsection (b).

(b) Authority.—The authority described in this subsection is authority for a member of the Armed Forces who is eligible for tuition assistance under the Department of Defense Tuition Assistance (TA) Program to use such assistance at or with an educational institution described in subsection (c) for courses or programs of education of such educational institution in connection with the following:

(1) Cybersecurity skills or related skills.

(2) Computer coding skills or related skills.

(c) Educational institutions.—

(1) IN GENERAL.—An educational institution described in this subsection is an educational institution not otherwise approved for participation in the Department of Defense Tuition Assistance Program that receives approval from the Department of Defense for participation in the program for courses or programs of education described in subsection (b).

(2) APPROVAL.—Any approval of the participation of an educational institution in the Program under this subsection would be granted by the Under Secretary of Defense for Personnel and Readiness in accordance with such guidance as the Under Secretary would issue for purposes of this section.

(3) MEMORANDA OF UNDERSTANDING.—The Under Secretary would enter into a memorandum of understanding with each educational institution approved for participation in the Program pursuant to this subsection regarding the participation of such educational institution in the Program. Each memorandum of understanding would set forth such terms and conditions regarding the participation of the educational institution concerned in the Program, including terms and conditions applicable to the courses or programs for which tuition assistance under the Program could be used, as the Under Secretary would consider appropriate for purposes of this section.

(d) Courses and programs.—The courses and programs of education for which tuition assistance could be used pursuant to the authority in subsection (b) would include the following:

(1) Massive online open courses (MOOCs).

(2) Short-term certification courses, including so-called computer coding “boot camps”.

(3) Such other non-traditional courses and programs of education leading to skills specified in subsection (b) as the Under Secretary would consider appropriate for purposes of this section.

subtitle FDefense Dependents' Education and Military Family Readiness Matters

PART IDefense Dependents' Education Matters

SEC. 551. Impact aid for children with severe disabilities.

(a) In general.—Of the amount authorized to be appropriated for fiscal year 2018 pursuant to section 301 and available for operation and maintenance for Defense-wide activities as specified in the funding table in section 4301, $10,000,000 shall be available for payments under section 363 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106–398; 114 Stat. 1654A–77; 20 U.S.C. 7703a).

(b) Use of certain amount.—Of the amount available under subsection (a) for payments as described in that subsection, $5,000,000 shall be available for such payments to local educational agencies determined by the Secretary of Defense, in the discretion of the Secretary, to have higher concentrations of military children with severe disabilities.

SEC. 552. 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 2018 by section 301 and available for operation and maintenance for Defense-wide activities as specified in the funding table in section 4301, $25,000,000 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) Local educational agency defined.—In this section, the term “local educational agency” has the meaning given that term in section 7013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 553. One-year extension of authorities relating to the transition and support of military dependent students to local educational agencies.

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, 2017” and inserting “September 30, 2018”.

PART IIMilitary Family Readiness Matters

SEC. 556. Housing treatment for certain members of the Armed Forces, and their spouses and other dependents, undergoing a permanent change of station within the United States.

(a) Housing treatment.—

(1) IN GENERAL.—Chapter 7 of title 37, United States Code, is amended by inserting after section 403 the following new section:

§ 403a. Housing treatment for certain members of the armed forces, and their spouses and other dependents, undergoing a permanent change of station within the United States

“(a) Housing treatment for certain members who have a spouse or other dependents.—

“(1) HOUSING TREATMENT REGULATIONS.—The Secretary of Defense shall prescribe regulations that permit a member of the armed forces described in paragraph (2) who is undergoing a permanent change of station within the United States to request the housing treatment described in subsection (b) during the covered relocation period of the member.

“(2) ELIGIBLE MEMBERS.—A member described in this paragraph is any member who—

“(A) has a spouse who is gainfully employed or enrolled in a degree, certificate or license granting program at the beginning of the covered relocation period;

“(B) has one or more dependents attending an elementary or secondary school at the beginning of the covered relocation period;

“(C) has one or more dependents enrolled in the Exceptional Family Member Program; or

“(D) is caring for an immediate family member with a chronic or long-term illness at the beginning of the covered relocation period.

“(b) Housing treatment.—

“(1) CONTINUATION OF HOUSING FOR THE SPOUSE AND OTHER DEPENDENTS.—If a spouse or other dependent of a member whose request under subsection (a) is approved resides in Government-owned or Government-leased housing at the beginning of the covered relocation period, the spouse or other dependent may continue to reside in such housing during a period determined in accordance with the regulations prescribed pursuant to this section.

“(2) EARLY HOUSING ELIGIBILITY.—If a spouse or other dependent of a member whose request under subsection (a) is approved is eligible to reside in Government-owned or Government-leased housing following the member’s permanent change of station within the United States, the spouse or other dependent may commence residing in such housing at any time during the covered relocation period.

“(3) TEMPORARY USE OF GOVERNMENT-OWNED OR GOVERNMENT-LEASED HOUSING INTENDED FOR MEMBERS WITHOUT A SPOUSE OR DEPENDENT.—If a spouse or other dependent of a member relocates at a time different from the member in accordance with a request approved under subsection (a), the member may be assigned to Government-owned or Government-leased housing intended for the permanent housing of members without a spouse or dependent until the member’s detachment date or the spouse or other dependent’s arrival date, but only if such Government-owned or Government-leased housing is available without displacing a member without a spouse or dependent at such housing.

“(4) EQUITABLE BASIC ALLOWANCE FOR HOUSING.—If a spouse or other dependent of a member relocates at a time different from the member in accordance with a request approved under subsection (a), the amount of basic allowance for housing payable may be based on whichever of the following areas the Secretary concerned determines to be the most equitable:

“(A) The area of the duty station to which the member is reassigned.

“(B) The area in which the spouse or other dependent resides, but only if the spouse or other dependent resides in that area when the member departs for the duty station to which the member is reassigned, and only for the period during which the spouse or other dependent resides in that area.

“(C) The area of the former duty station of the member, but only if that area is different from the area in which the spouse or other dependent resides.

“(c) Rule of construction related to certain basic allowance for housing payments.—Nothing in this section shall be construed to limit the payment or the amount of basic allowance for housing payable under section 403(d)(3)(A) of this title to a member whose request under subsection (a) is approved.

“(d) Inapplicability to Coast Guard.—This section does not apply to members of the Coast Guard.

“(e) Housing treatment education.—The regulations prescribed pursuant to this section shall ensure the relocation assistance programs under section 1056 of title 10 include, as part of the assistance normally provided under such section, education about the housing treatment available under this section.

“(f) Definitions.—In this section:

“(1) COVERED RELOCATION PERIOD.— (A) Subject to subparagraph (B), the term ‘covered relocation period’, when used with respect to a permanent change of station of a member of the armed forces, means the period that—

“(i) begins 180 days before the date of the permanent change of station; and

“(ii) ends 180 days after the date of the permanent change of station.

“(B) The regulations prescribed pursuant to this section may provide for a shortening or lengthening of the covered relocation period of a member for purposes of this section.

“(2) DEPENDENT.—The term ‘dependent’ has the meaning given that term in section 401 of this title.

“(3) PERMANENT CHANGE OF STATION.—The term ‘permanent change of station’ means a permanent change of station described in section 452(b)(2) of this title.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 7 such title is amended by inserting after the item relating to section 403 the following new item:


“403a. Housing treatment for certain members of the armed forces, and their spouses and other dependents, undergoing a permanent change of station within the United States.”.

(b) Effective date.—The amendments made by this section shall take effect on October 1, 2018.

SEC. 557. Direct hire authority for Department of Defense for childcare services providers for Department child development centers.

(a) In general.—The Secretary of Defense may, without regard to the provisions of subchapter I of chapter 33 of title 5, United States Code, recruit and appoint qualified childcare services providers to positions within the Department of Defense child development centers.

(b) Regulations.—The Secretary shall carry out this section in accordance with regulations prescribed by the Secretary for purposes of this section.

(c) Deadline for implementation.—The Secretary shall prescribe the regulations required by subsection (b), and commence implementation of subsection (a), by not later than May 1, 2018.

(d) Childcare services provider defined.—In this section, the term “childcare services provider” means a person who provides childcare services for dependent children of members of the Armed Forces and civilian employees of the Department of Defense in child development centers on Department installations.

SEC. 558. Report on expanding and contracting for childcare services of the Department of Defense.

Not later than March 1, 2018, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report setting forth an assessment, undertaken by the Secretary for purposes of the report, of the feasibility and advisability of the following:

(1) Expanding the operating hours of childcare facilities of the Department of Defense in order to meet childcare services requirements for swing-shift, night-shift, and weekend workers.

(2) Using contracts with private-sector childcare services providers to expand the availability of childcare services for members of the Armed Forces at locations outside military installations at costs similar to the current costs for childcare services through child development centers on military installations.

(3) Contracting with private-sector childcare services providers to operate childcare facilities of the Department on military installations.

(4) Expanding childcare services as described in paragraphs (1) through (3) to members of the National Guard and Reserves in a manner that does not substantially raise costs of childcare services for the military departments or conflict with others who have a higher priority for space in childcare services programs, such as members of the Armed Forces on active duty.

SEC. 559. Report on review of General Schedule pay grades of childcare services providers of the Department of Defense.

(a) Report required.—Not later than March 1, 2018, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on a review, undertaken by the Secretary for purposes of the report, of the General Schedule pay grades for childcare services provider positions within the Department of Defense.

(b) Elements of review.—The review undertaken for purposes of subsection (a) shall include the following:

(1) A comparison of the compensation provided for current General Schedule pay grades for childcare services provider positions within the Department with the compensation provided to childcare services providers in the private sector providing similar childcare services.

(2) An assessment of the mix of General Schedule pay grades currently required by the Department to most effectively recruit and retain childcare services providers for military dependents.

(3) A comparison of the budget implications of the current General Schedule pay grade mix with the General Schedule pay grade mix determined pursuant to paragraph (2) to be required by the Department to most effectively recruit and retain childcare services providers for military dependents.

SEC. 560. Pilot program on public-private partnerships for telework facilities on military installations outside the United States.

(a) In general.—Commencing not later than one year after the date of the enactment of this Act, the Secretary of Defense shall carry out a pilot program to assess the feasability and advisability of providing telework facilities for military spouses on military installations outside the United States. The Secretary shall consult with the host nation or nations concerned in carrying out the pilot program.

(b) Number of installations.—The Secretary shall carry out the pilot program at not less than two military installations outside the United States selected by the Secretary for purposes of the pilot program.

(c) Duration.—The duration of the pilot program shall be a period selected by the Secretary, but not more than three years.

(d) Elements.—The pilot program shall include the following elements:

(1) The pilot program shall be conducted as one or more public-private partnerships between the Department of Defense and a private corporation or partnership of private corporations.

(2) The corporation or corporations participating in the pilot program shall contribute to the carrying out of the pilot program an amount equal to the amount committed by the Secretary to the pilot program at the time of its commencement.

(3) The Secretary shall enter into one or more memoranda of understanding with the corporation or corporations participating in the pilot program for purposes of the pilot program, including the amounts to be contributed by such corporation or corporations pursuant to paragraph (2).

(4) The telework undertaken by military spouses under the pilot program may only be for United States companies.

(5) The pilot program shall permit military spouses to provide administrative, informational technology, professional, and other necessary support to companies through telework from Department installations outside the United States.

(e) Funding.—Of the amount authorized to be appropriated for fiscal year 2018 by section 401 and available for military personnel as specified in the funding table in section 4401, up to $1,000,000 may be available to carry out the pilot program, including entry into memoranda of understanding pursuant to subsection (d)(3) and payment by the Secretary of the amount committed by the Secretary to the pilot program pursuant to subsection (d)(2).

SEC. 561. Report on mechanisms to facilitate the obtaining by military spouses of professional licenses or credentials in other States.

Not later than March 1, 2018, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report setting forth an assessment of the feasability and advisability of the following:

(1) The development and maintenance of a joint Federal-State clearing house to process the professional license and credential information of military spouses in order—

(A) to facilitate the matching of such information with State professional licensure and credentialing requirements; and

(B) to provide military spouses information on the actions required to obtain professional licenses or credentials in other States.

(2) The establishment of a joint Federal-State taskforce dedicated to the elimination of unnecessary or duplicative professional licensure and credentialing requirements among the States.

(3) The development and maintenance of an Internet website that serves as a one-stop resource on professional licenses and credentials for military spouses that sets forth license and credential requirements for common professions in the States and provides assistance and other resources for military spouses seeking to obtain professional licenses or credentials in other States.

SEC. 562. Additional military childcare matters.

(a) Hours of operation of childcare development centers of the Department of Defense.—

(1) IN GENERAL.—The hours of operation of each childcare development center (CDC) of the Department of Defense shall, to the extent practicable, be set and maintained in manner that takes into account the demands and circumstances of members of the Armed Forces, including members of the reserve components, who use such center in facilitation of the performance of their military duties.

(2) MATTERS TO BE TAKEN INTO ACCOUNT.—The demands and circumstances to be taken into account under paragraph (1) for purposes of setting and maintaining the hours of operation of a childcare development center shall include the following:

(A) Mission requirements of units whose members use such center.

(B) The unpredictability of work schedules, and fluctuations in day-to-day work hours, of such members.

(C) The potential for frequent and prolonged absences of such members for training, operations, and deployments.

(D) The location of such center on the military installation concerned, including the location in connection with duty locations of members and applicable military family housing.

(E) The geographic separation of such members from their extended family.

(F) The impact on the ability of such members to perform their military duties of employment of their spouses or educational pursuits of their spouses.

(G) Such other matters as the Secretary of the military department concerned considers appropriate for purposes of this subsection.

(b) Childcare coordinators for military installations.—

(1) CHILDCARE COORDINATORS.—Each Secretary of a military department shall provide for a childcare coordinator at each military installation under the jurisdiction of such Secretary at which are stationed significant numbers of members of the Armed Forces with accompanying dependent children, as determined by such Secretary.

(2) NATURE OF POSITION.—The childcare coordinator for a military installation may be an individual appointed to that position on full-time or part-time basis or an individual appointed to another position whose duties in such other position are consistent with the discharge by the person of the duties of childcare coordinator.

(3) DUTIES.—Each childcare coordinator for an installation shall carry out the duties as follows:

(A) Act as an advocate for military families at the installation on childcare matters both on-installation and off-installation.

(B) Work with the commander of the installation in order to seek to ensure that the childcare development centers at the installation, together with any other available childcare options on or in the vicinity of the installation—

(i) provide a quality of care (including a caregiver-to-child ratio) commensurate with best practices of private providers of childcare services; and

(ii) are responsive to the childcare needs of members stationed at the installation and their families.

(C) Work with private providers of childcare services in the vicinity of the installation in order to—

(i) track vacancies in the childcare facilities of such providers;

(ii) seek to increase the availability of affordable childcare services for such members; and

(iii) otherwise ease the use of such services by such members.

(D) Such other duties as the Secretary of the military department concerned shall specify.

subtitle GDecorations and Awards

SEC. 571. Authority of Secretary of the Army to award the Personnel Protection Equipment award of the Army to former members of the Army.

Notwithstanding any requirement in section 1125 of title 10, United States Code, relating to the award of awards only to current members of the Armed Forces, the Secretary of the Army may award the Personnel Protection Equipment (PPE) award of the Army to former members of the Army.

SEC. 572. Authorization for award of Distinguished Service Cross to Specialist Frank M. Crary for acts of valor in Vietnam.

(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 President may award the Distinguished Service Cross under section 3742 of such title to Specialist Frank M. Crary for the acts of valor in Vietnam described in subsection (b).

(b) Acts of valor described.—The acts of valor referred to in subsection (a) are the actions of Frank M. Crary on April 7, 1966, as a member of the Army serving in the grade of Specialist in Vietnam while serving with Company D, 1st Battalion (Airborne), 12th Cavalry Regiment, 1st Cavalry Division.

subtitle HOther Matters

SEC. 581. Modification of submittal date of Comptroller General of the United States report on integrity of the Department of Defense whistleblower program.

Section 536(a) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2124) is amended by striking “18 months after the date of the enactment of this Act” and inserting “December 31, 2018”.

SEC. 582. Report to Congress on accompanied and unaccompanied tours of duty in remote locations with high family support costs.

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 setting forth a comparative analysis, undertaken by the Secretary for purposes of the report, of accompanied tours of duty and unaccompanied tours of duty of members of the Armed Forces in remote locations with high family support costs (including facility construction and operation costs), including the following:

(1) United States Naval Station, Guantanamo Bay, Cuba.

(2) Kwajalein Atoll.

(3) Al Udeid Air Base, Qatar.

TITLE VICompensation and Other Personnel Benefits

subtitle APay and Allowances

SEC. 601. Fiscal year 2018 increase in military basic pay.

(a) Waiver of section 1009 adjustment.—The adjustment to become effective during fiscal year 2018 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, 2018, the rates of monthly basic pay for members of the uniformed services are increased by 2.1 percent.

SEC. 602. 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, 2017” and inserting “December 31, 2018”.

SEC. 603. Adjustment to basic allowance for housing at with dependents rate of certain members of the uniformed services.

(a) In general.—Section 403 of title 37, United States Code, is amended by adding at the end the following new subsection:

“(p) Ineligibility for with dependents rate of certain members.—A member who is married to another member, is assigned to the same geographic location as such other member, and has one or more dependent children with such other member is not eligible for a basic allowance for housing at the with dependents rate.”.

(b) Effective date.—

(1) IN GENERAL.—The amendment made by subsection (a) shall take effect on October 1, 2017, and shall, except as provided in paragraph (2), apply with respect to allowances for basic housing payable for months beginning on or after that date.

(2) PRESERVATION OF CURRENT BAH FOR MEMBERS WITH UNINTERRUPTED ELIGIBILITY FOR BAH.—Notwithstanding the amendment made by subsection (a), the monthly amount of basic allowance for housing payable to a member of the uniformed services under section 403 of title 37, United States Code, as of September 30, 2017, shall not be reduced by reason of the amendment so long as the member retains uninterrupted eligibility for such basic allowance for housing within an area of the United States or within an overseas location (as applicable).

SEC. 604. Modification of authority of President to determine alternative pay adjustment in annual basic pay of members of the uniformed services.

(a) Modification.—Section 1009(e) of title 37, United States Code, is amended—

(1) in paragraph (1), by striking “or serious economic conditions affecting the general welfare”;

(2) by striking paragraph (2); and

(3) by redesignating paragraph (3) as paragraph (2).

(b) Effective date.—The amendments made by subsection (a) shall take effect on the date of the enactment of this Act, and—

(1) if the date of the enactment of this Act occurs before September 1 of a year, shall apply with respect to plans for alternative pay adjustments for any year beginning after such year; and

(2) if the date of the enactment of this Act occurs after August 31 of a year, shall apply with respect to plans for alternative pay adjustments for any year beginning after the year following such year.

subtitle BBonuses 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, 2017” and inserting “December 31, 2018”:

(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, 2017” and inserting “December 31, 2018”:

(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, 2017” and inserting “December 31, 2018”:

(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, 2017” and inserting “December 31, 2018”:

(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, 2017” and inserting “December 31, 2018”:

(1) Section 331(h), relating to general bonus authority for enlisted members.

(2) Section 332(g), relating to general bonus authority for officers.

(3) Section 333(i), relating to special bonus and incentive pay authorities for nuclear officers.

(4) Section 334(i), relating to special aviation incentive pay and bonus authorities for officers.

(5) Section 335(k), relating to special bonus and incentive pay authorities for officers in health professions.

(6) Section 336(g), relating to contracting bonus for cadets and midshipmen enrolled in the Senior Reserve Officers' Training Corps.

(7) Section 351(h), relating to hazardous duty pay.

(8) Section 352(g), relating to assignment pay or special duty pay.

(9) Section 353(i), relating to skill incentive pay or proficiency bonus.

(10) Section 355(h), relating to retention incentives for members qualified in critical military skills or assigned to high priority units.

SEC. 615. One-year extension of authorities relating to payment of other title 37 bonuses and special pays.

The following sections of title 37, United States Code, are amended by striking “December 31, 2017” and inserting “December 31, 2018”:

(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 bonus matters.

Section 334(c) of title 37, United States Code, is amended—

(1) by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively; and

(2) by inserting after paragraph (1) the following new paragraphs:

“(2) BUSINESS CASE FOR PAYMENT OF AVIATION BONUS AMOUNTS.—

“(A) IN GENERAL.—The amount of the aviation bonus payable under paragraph (1)(B) under agreements entered into under subsection (d) during a fiscal year shall be determined solely through a business case analysis of the amount required to be paid under such agreements in order to address anticipated manning shortfalls for such fiscal year by aircraft type category.

“(B) BUDGET JUSTIFICATION DOCUMENTS.—The budget justification documents in support of the budget of the President for a fiscal year (as submitted to Congress pursuant to section 1105 of title 31) shall set forth for each uniformed service the following:

“(i) The amount requested for the payment of aviation bonuses under this section 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).

“(iv) If any amount requested is to address manning shortfalls, a description of any plans of the Secretary concerned to address such shortfalls by non-monetary means.

“(3) TIERED LIMITATION ON MAXIMUM AMOUNT OF AVIATION BONUS.—

“(A) IN GENERAL.—The maximum amount of the aviation bonus payable under paragraph (1)(B) under agreements entered into under subsection (d) during a fiscal year shall vary by anticipated manning shortfalls for such fiscal year by aircraft type category. The variance shall be stated by tier correlating maximum bonus amounts with anticipated manning and retention levels, as follows:

“(i) Maximum amount payable (known as ‘Tier I’) is the amount specified for the fiscal year concerned by paragraph (1)(B) and is payable under agreements for duty by aircraft type category in which—

“(I) the projected manning level for the fiscal year does not exceed 90 percent of the required manning level; or

“(II) the two-year retention trend for personnel performing such duty does not exceed 50 percent.

“(ii) Maximum amount payable (known as ‘Tier II’) is an amount equal to 68 percent of the amount specified for the fiscal year concerned by paragraph (1)(B) and is payable under agreements for duty by aircraft type category in which—

“(I) the projected manning level for the fiscal year is between 90 and 95 percent of the required manning level; or

“(II) the two-year retention trend for personnel performing such duty is between 50 and 55 percent.

“(iii) Maximum amount payable (known as ‘Tier III’) is an amount equal to 34 percent of the amount specified for the fiscal year concerned by paragraph (1)(B) and is payable under agreements for duty by aircraft type category in which—

“(I) the projected manning level for the fiscal year is between 95 and 100 percent of the required manning level; or

“(II) the two-year retention trend for personnel performing such duty is between 55 and 65 percent.

“(iv) Maximum amount payable (known as ‘Tier IV’) is zero for duty by aircraft type category in which—

“(I) the projected manning level for the fiscal year is 100 percent or more of the required manning level; or

“(II) the two-year retention trend for personnel performing such duty exceeds 65 percent.

“(B) LIMITATION ON TOTAL NUMBER OF AGREEMENTS PROVIDING FOR TIER I PAYMENT.—In no event may all the agreements entered into under subsection (d) during a fiscal year by a Secretary concerned provide for a maximum amount payable as described in subparagraph (A)(i).”.

SEC. 617. Special aviation incentive pay and bonus authorities for enlisted members who pilot remotely piloted aircraft.

(a) In general.—Chapter 5 of title 37, United States Code, is amended by inserting after section 334 the following new section:

§ 334a. Special aviation incentive pay and bonus authorities: enlisted members who pilot remotely piloted aircraft

“(a) Aviation incentive pay.—

“(1) INCENTIVE PAY AUTHORIZED.—The Secretary concerned may pay aviation incentive pay under this section to an enlisted member in a regular or reserve component of a uniformed service who—

“(A) is entitled to basic pay under section 204 of this title or compensation under 206 of this title;

“(B) is designated as a remotely piloted aircraft pilot, or is in training leading to such a designation;

“(C) engages in, or is in training leading to, frequent and regular performance of operational flying duty or proficiency flying duty;

“(D) engages in or remains in aviation service for a specified period; and

“(E) meets such other criteria as the Secretary concerned determines appropriate.

“(2) ENLISTED MEMBERS NOT CURRENTLY ENGAGED IN FLYING DUTY.—The Secretary concerned may pay aviation incentive pay under this section to an enlisted member who is otherwise qualified for such pay but who is not currently engaged in the performance of operational flying duty or proficiency flying duty if the Secretary determines, under regulations prescribed under section 374 of this title, that payment of aviation pay to that enlisted member is in the best interests of the service.

“(b) Aviation bonus.—The Secretary concerned may pay an aviation bonus under this section to an enlisted member in a regular or reserve component of a uniformed service who—

“(1) is entitled to aviation incentive pay under subsection (a);

“(2) is within one year of completing the member’s enlistment;

“(3) reenlists or voluntarily extends the member’s enlistment for a period of at least one year or, in the case of an enlisted member serving pursuant to an indefinite reenlistment, executes a written agreement to remain on active duty for a period of at least one year or to remain in an active status in a reserve component for a period of at least one year; and

“(4) meets such other criteria as the Secretary concerned determines appropriate.

“(c) Maximum amount and method of payment.—

“(1) MAXIMUM AMOUNT.—The Secretary concerned shall determine the amount of a bonus or incentive pay to be paid under this section, except that—

“(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).

“(2) BUSINESS CASE FOR PAYMENT OF AVIATION BONUS AMOUNTS.—

“(A) IN GENERAL.—The amount of the aviation bonus payable under paragraph (1)(B) under agreements entered into under subsection (d) during a fiscal year shall be determined solely through a business case analysis of the amount required to be paid under such agreements in order to address anticipated manning shortfalls for such fiscal year by aircraft type category.

“(B) BUDGET JUSTIFICATION DOCUMENTS.—The budget justification documents in support of the budget of the President for a fiscal year (as submitted to Congress pursuant to section 1105 of title 31) shall set forth for each uniformed service the following:

“(i) The amount requested for the payment of aviation bonuses under this section 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).

“(iv) If any amount requested is to address manning shortfalls, a description of any plans of the Secretary concerned to address such shortfalls by non-monetary means.

“(3) LUMP SUM OR INSTALLMENTS.—A bonus under this section may be paid in a lump sum or in periodic installments, as determined by the Secretary concerned.

“(4) FIXING BONUS AMOUNT.—Upon acceptance by the Secretary concerned of the written agreement required by subsection (d), the total amount of the bonus to be paid under the agreement shall be fixed.

“(d) Written agreement for bonus.—To receive an aviation bonus under this section, an enlisted member determined to be eligible for the bonus shall enter into a written agreement with the Secretary concerned that specifies—

“(1) the amount of the bonus;

“(2) the method of payment of the bonus under subsection (c)(2);

“(3) the period of obligated service; and

“(4) the type or conditions of the service.

“(e) Reserve component enlisted members performing inactive duty training.—An enlisted member of reserve component who is entitled to compensation under section 206 of this title and who is authorized aviation incentive pay under this section may be paid an amount of incentive pay that is proportionate to the compensation received under section 206 of this title for inactive-duty training.

“(f) Relationship to other pay and allowances.—

“(1) AVIATION INCENTIVE PAY.—Aviation incentive pay paid to an enlisted member under subsection (a) shall be in addition to any other pay and allowance to which the enlisted member is entitled, except that an enlisted member may not receive a payment under such subsection and section 351(a)(2) or 353(a) of this title for the same skill and period of service.

“(2) AVIATION BONUS.—An aviation bonus paid to an enlisted member under subsection (b) shall be in addition to any other pay and allowance to which the enlisted member is entitled, except that an enlisted member may not receive a bonus payment under such subsection and section 331 or 353(b) of this title for the same skill and period of service.

“(g) Repayment.—An enlisted member who receives aviation incentive pay or an aviation bonus under this section and who fails to fulfill the eligibility requirements for the receipt of the incentive pay or bonus or complete the period of service for which the incentive pay or bonus is paid, as specified in the written agreement under subsection (d) in the case of a bonus, shall be subject to the repayment provisions of section 373 of this title.

“(h) Definitions.—In this section:

“(1) AVIATION SERVICE.—The term ‘aviation service’ means participation in aerial flight performed, under regulations prescribed by the Secretary concerned, by an eligible enlisted member remotely piloted aircraft pilot.

“(2) OPERATIONAL FLYING DUTY.—The term ‘operational flying duty’ means flying performed under competent orders by enlisted members of the regular or reserve components while serving in assignments in which basic flying skills are normally maintained in the performance of assigned duties as determined by the Secretary concerned, and flying duty performed by members in training that leads to designation as a remotely piloted aircraft pilot by the Secretary concerned.

“(3) PROFICIENCY FLYING DUTY.—The term ‘proficiency flying duty’ means flying performed under competent orders by enlisted members of the regular or reserve components while serving in assignments in which such skills would normally not be maintained in the performance of assigned duties.

“(i) Termination of Authority.—No agreement may be entered into under this section after December 31, 2018.”.

(b) Clerical amendment.—The table of sections at the beginning of chapter 5 of such title is amended by inserting after the item relating to section 334 the following new item:


“334a. Special aviation incentive pay and bonus authorities: enlisted members who pilot remotely piloted aircraft.”.

SEC. 618. Technical and conforming amendments relating to 2008 consolidation of special pay authorities.

(a) Repayment provisions.—

(1) TITLE 10.—The following provisions of title 10, United States Code, are each amended by inserting “or 373” before “of title 37”:

(A) Section 510(i).

(B) Subsections (a)(3) and (c) of section 2005.

(C) Paragraphs (1) and (2) of section 2007(e).

(D) Section 2105.

(E) Section 2123(e)(1)(C).

(F) Section 2128(c).

(G) Section 2130a(d).

(H) Section 2171(g).

(I) Section 2173(g)(2).

(J) Paragraphs (1) and (2) of section 2200a(e).

(K) Section 4348(f).

(L) Section 6959(f).

(M) Section 9348(f).

(N) Subsections (a)(2) and (b) of section 16135.

(O) Section 16203(a)(1)(B).

(P) Section 16301(h).

(Q) Section 16303(d).

(R) Paragraphs (1) and (2) of section 16401(f).

(2) TITLE 14.—Section 182(g) of title 14, United States Code, is amended by inserting “or 373” before “of title 37”.

(b) Officers appointed pursuant to an agreement under section 329 of title 37.—Section 641 of title 10, United States Code, is amended by striking paragraph (6).

(c) Reenlistment leave.—The matter preceding paragraph (1) of section 703(b) of title 10, United States Code, is amended by inserting “or paragraph (1) or (3) of section 351(a)” after “section 310(a)(2)”.

(d) Rest and recuperation absence for qualified members extending duty at designated location overseas.—The matter following paragraph (4) of section 705(a) of title 10, United States Code, is amended by inserting “or 352” after “section 314”.

(e) Rest and recuperation absence for certain members undergoing extended deployment to combat zone.—Section 705a(b)(1)(B) of title 10, United States Code, is amended by inserting “or 352(a)” after “section 305”.

(f) Additional incentives for health professionals of the Indian Health Service.—Section 116(a) of the Indian Health Care Improvement Act (25 U.S.C. 1616i(a)) is amended by inserting “or 335(b)” after “section 302(b)”.

(g) Military pay and allowances continuance while in a missing status.—Section 552(a)(2) of title 37, United States Code, is amended by inserting “or section 351(a)(2)” after “section 301”.

(h) Military pay and allowances.—Section 907(d) of title 37, United States Code, is amended—

(1) in paragraph (1)—

(A) in subparagraph (A), by inserting “or 351” after “section 301”;

(B) in subparagraph (B), by inserting “or 352” after “section 301c”;

(C) in subparagraph (C), by inserting “or 353(a)” after “section 304”;

(D) in subparagraph (D), by inserting “or 352” after “section 305”;

(E) in subparagraph (E), by inserting “or 352” after “section 305a”;

(F) in subparagraph (F), by inserting “or 352” after “section 305b”;

(G) in subparagraph (G), by inserting “or 352” after “section 307a”;

(H) in subparagraph (I), by inserting “or 352” after “section 314”;

(I) in subparagraph (J), by striking “316” and inserting “353(b)”; and

(J) in subparagraph (K), by striking “323” and inserting “section 355”; and

(2) in paragraph (2)—

(A) in subparagraph (A), by inserting “or 352” after “section 307”;

(B) in subparagraph (B), by striking “308” and inserting “331”;

(C) in subparagraph (C), by striking “309” and inserting “331”; and

(D) in subparagraph (D), by inserting “or 353” after “section 320”.

(i) Pay and allowances of officers of the Public Health Service.—Section 208(a)(2) of the Public Health Service Act (42 U.S.C. 210(a)(2)) is amended by inserting “or 373” after “303a(b)”.

subtitle CDisability Pay, Retired Pay, and Survivor Benefits

PART IAmendments in Connection with Retired Pay Reform

SEC. 631. Adjustments to Survivor Benefit Plan for members electing lump sum payments of retired pay under the modernized retirement system for members of the uniformed services.

(a) Definition of base amount.—Section 1447(6)(A) of title 10, United States Code, is amended in the matter preceding clause (i) by inserting “or 1415(b)(1)(B)” after “section 1409(b)(2)”.

(b) Coordination with reductions in retired pay.—Section 1452 of such title is amended—

(1) in subsection (a)(1), by inserting “, other than retired pay received as a lump sum under section 1415(b)(1)(A) of this title,” in the matter preceding subparagraph (A) after “, the retired pay”;

(2) in subsection (b)(1), by inserting “, other than retired pay received as a lump sum under section 1415(b)(1)(A) of this title,” after “The retired pay”; and

(3) in subsection (c)—

(A) in paragraph (1), by inserting “, other than retired pay received as a lump sum under section 1415(b)(1)(A) of this title,” after “The retired pay”; and

(B) in paragraph (4), by inserting “or 1415(b)(1)(B)” after “section 1409(b)(2)”.

SEC. 632. Technical correction regarding election to participate in modernized retirement system for reserve component members experiencing a break in service.

(a) Persons experiencing a break in service.—Section 12739(f)(2)(B)(iii) of title 10, United States Code, is amended by striking “on the date of the reentry” and inserting “within 30 days after the date of the reentry”.

(b) Effective date.—The amendment made by subsection (a) shall take effect on January 1, 2018, immediately after the coming into effect of the amendment made by section 631(b) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 843), to which the amendment made by subsection (a) relates.

PART IIOther Matters

SEC. 636. Authority for the Secretaries of the military departments to provide for care of remains of those who die on active duty and are interred in a foreign cemetery.

Section 1482(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(10) In the case of a decedent under the jurisdiction of a Secretary of a military department at the time of death, enduring care of remains interred in a foreign cemetery if the burial location was designated by such Secretary.”.

SEC. 637. Technical corrections to use of member's current pay grade and years of service in a division of property involving disposable retired pay.

(a) In general.—Section 1408 of title 10, United States Code, is amended—

(1) in subsection (a)(4)—

(A) in the matter preceding clause (i) of subparagraph (A), by striking “(as determined pursuant to subparagraph (B)”; and

(B) by striking subparagraph (B) and inserting the following new subparagraph (B):

“(B) For purposes of subparagraph (A), in the case of a division of property as part of a final decree of divorce, dissolution, annulment, or legal separation that becomes final prior to the date of a member's retirement, the total monthly retired pay to which the member is entitled shall be—

“(i) in the case of a member not described in clause (ii), the amount of retired pay to which the member would have been entitled using the member's retired pay base and years of service on the date of the decree of divorce, dissolution, annulment, or legal separation, as computed under section 1406 or 1407 of this title, whichever is applicable, increased by the sum of the cost-of-living adjustments that—

“(I) would have occurred under section 1401a(b) of this title between the date of the decree of divorce, dissolution, annulment, or legal separation and the time of the member's retirement using the adjustment provisions under section 1401a of this title applicable to the member upon retirement; and

“(II) occur under 1401a of this title after the member's retirement; or

“(ii) in the case of a member who becomes entitled to retired pay pursuant to chapter 1223 of this title, the amount of retired pay to which the member would have been entitled using the member's retired pay base and creditable service points on the date of the decree of divorce, dissolution, annulment, or legal separation, as computer under chapter 1223 of this title, increased by the sum of the cost-of-living adjustments as described in clause (i) that apply with respect to the member.”; and

(2) in subsection (d), by adding at the end the following new paragraph:

“(8) A division of property award computed as a percentage of a member's disposable retired pay shall be increased by the same percentage as any cost-of-living adjustment made under section 1401a after the member's retirement.”.

(b) Effective date.—The amendments made by subsection (a) shall take effect on December 23, 2016, as if enacted immediately following the enactment of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) to which such amendments relate.

(c) Applicability.—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 December 23, 2016.

SEC. 638. Permanent extension and cost-of-living adjustments of special survivor indemnity allowances under the Survivor Benefit Plan.

Section 1450(m) of title 10, United States Code, is amended—

(1) in paragraph (2)—

(A) in subparagraph (H), by striking “and” at the end; and

(B) by striking subparagraph (I) and inserting the following new subparagraphs:

“(I) for months from October 2016 through December 2018, $310; and

“(J) for months during any calendar year after 2018, the amount determined in accordance with paragraph (6).”; and

(2) by striking paragraph (6) and inserting the following new paragraph (6):

“(6) COST-OF-LIVING ADJUSTMENTS AFTER 2018.—

“(A) IN GENERAL.—The amount of the allowance payable under paragraph (1) for months during any calendar year beginning after 2018 shall be—

“(i) the amount payable pursuant to paragraph (2) for months during the preceding calendar year, plus

“(ii) an amount equal to the percentage of the amount determined pursuant to clause (i) which percentage is equal to the percentage increase in retired pay of members and former members of the armed forces for such calendar year under section 1401a of this title.

“(B) PUBLIC NOTICE ON AMOUNT OF ALLOWANCE PAYABLE.—The Secretary of Defense shall publish in the Federal Register each year the amount of the allowance payable under paragraph (1) for months in such year by reason of the operation of this paragraph.”.

subtitle DOther Matters

SEC. 651. Construction of domestic source requirement for footwear furnished to enlisted members of the Armed Forces on initial entry into the Armed Forces.

Section 418(d) of title 37, United States Code, is amended by adding at the end the following new paragraphs:

“(4) This subsection does not apply to the furnishing of athletic footwear to the members of the Army, the Navy, the Air Force, or the Marine Corps upon their initial entry into the armed forces, or prohibit the provision of a cash allowance to such members for such purpose, if the Secretary of Defense determines that compliance with paragraph (2) would result in a sole source contract for procurement of athletic footwear for the purpose stated in paragraph (1) because there would be only a sole certified of supply for such footwear.

“(5) The Secretary of Defense shall ensure that all procurements of athletic footwear to which this subsection applies are made using firm fixed price contracts.”.

SEC. 652. Inclusion of Department of Agriculture in Transition Assistance Program.

(a) In general.—Subsection (a) of section 1144 of title 10, United States Code, is amended by striking “and the Secretary of Veterans Affairs” each place it appears in paragraphs (1) and (2) and inserting “the Secretary of Veterans Affairs, and the Secretary of Agriculture”.

(b) Inclusion in elements of program.—Subsection (b) of such section is amended by adding at the end the following new paragraph:

“(12) Provide information regarding the availability to such members of the following through the Department of Agriculture:

“(A) Grants, loans, and other assistance to enter production agriculture or engage in rural entrepreneurship.

“(B) Identification of and assistance in obtaining employment within the agricultural sector that aligns with military occupational specialties or military certifications, including employment with the Department.

“(C) Training and apprenticeships for employment in rural communities and in the agricultural and food sectors.”.

SEC. 653. Review and update of regulations governing debt collectors interactions with unit commanders.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall review and update Department of Defense Instruction 1344.09 and any associated regulations to ensure that such regulations comply with Federal consumer protection laws with respect to the collection of debt.

TITLE VIIHealth Care Provisions

subtitle ATRICARE and Other Health Care Benefits

SEC. 701. TRICARE Advantage demonstration program.

(a) Establishment.—

(1) IN GENERAL.—Not later than one year after the date of the enactment of this Act, the Secretary shall, in consultation with the Secretary of Health and Human Services, establish a demonstration program to enable applicable eligible individuals to enroll in Medicare Advantage plans.

(2) DURATION.—The demonstration program established under paragraph (1) shall be carried out for a period of not less than five years.

(b) Plans.—

(1) SELECTION.—The Secretary shall competitively select one or more Medicare Advantage plans for which the Secretary of Health and Human Services has waived or modified requirements under section 1857(i) of the Social Security Act (42 U.S.C. 1395w-27(i)) in market areas of the TRICARE program with large concentrations of beneficiaries eligible for TRICARE for Life (as determined by the Secretary) to participate in the demonstration program through the use of risk-bearing, capitated contracts with Medicare Advantage organizations.

(2) REQUIREMENTS.—Each Medicare Advantage plan selected under paragraph (1) shall meet the following requirements:

(A) The plan is an MA-PD plan (as defined in section 1860D-1(a)(3)(C) of the Social Security Act (42 U.S.C. 1395w-101(a)(3)(C))).

(B) The plan has a minimum quality star rating of four or higher under section 1853(o)(4) of such Act (42 U.S.C. 1395w-23(o)(4)).

(C) The plan and the Medicare Advantage organization offering the plan meet such other criteria as the Secretary determines appropriate for purposes of this section.

(3) USE OF DEPARTMENT FACILITIES AND SERVICES.—

(A) MILITARY TREATMENT FACILITIES.—The Secretary may include military treatment facilities as authorized providers for applicable eligible individuals enrolled in a Medicare Advantage plan participating in the demonstration program as a service provided by the Department of Defense.

(B) PHARMACY BENEFITS PROGRAM.—The Secretary may include coverage of pharmaceutical agents under the pharmacy benefits program under section 1074g of title 10, United States Code, as a coverage option for applicable eligible individuals enrolled in a Medicare Advantage plan participating in the demonstration program as a service provided by the Department of Defense.

(c) Enrollment of applicable eligible individuals.—Unless an applicable eligible individual opts out, all applicable eligible individuals located in an area participating in the demonstration program shall be enrolled in a Medicare Advantage plan selected under subsection (b)(1).

(d) Costs of program.—The Secretary and the Secretary of Health and Human Services shall jointly determine the appropriate distribution of costs and potential savings to the Department of Defense and the Department of Health and Human Services that result from the demonstration program.

(e) Reports.—

(1) REPORT ON IMPLEMENTATION OF PROGRAM.—

(A) IN GENERAL.—Not later than one year after the date of the enactment of this Act, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the implementation by the Secretary of the demonstration program under this section.

(B) ELEMENTS.—The report required by subparagraph (A) shall include the following:

(i) A description of each Medicare Advantage plan participating in the demonstration program, disaggregated by market area of the TRICARE program (as determined by the Secretary).

(ii) A description of covered benefits, premium rates, and copayments or cost sharing, if any, for each Medicare Advantage plan participating in the demonstration program in each such area.

(iii) The number of applicable eligible individuals eligible to enroll and the number of applicable eligible individuals projected to enroll in each Medicare Advantage plan participating in the demonstration program in each such area.

(iv) An assessment of projected average annual out-of-pocket costs, if any, for applicable eligible individuals enrolled in each Medicare Advantage plan participating in the demonstration program.

(v) A description of outcome metrics developed to measure quality of care, improved health outcomes, better access to care, and enhanced beneficiary experience under the demonstration program.

(2) FINAL REPORT.—Not later than four years 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 providing a comprehensive assessment of the demonstration program under this section.

(f) Definitions.—In this section:

(1) APPLICABLE ELIGIBLE INDIVIDUAL.—The term “applicable eligible individual” means an eligible individual (as defined in paragraph (2)) who is a Medicare Advantage eligible individual (as defined in section 1851(a)(3) of the Social Security Act (42 U.S.C. 1395w-21(a)(3))).

(2) ELIGIBLE INDIVIDUAL.—The term “eligible individual” means an individual eligible for health benefits under section 1086(d) of title 10, United States Code.

(3) MEDICARE ADVANTAGE ORGANIZATION.—The term “Medicare Advantage organization” has the meaning given that term in section 1859 of the Social Security Act (42 U.S.C. 1395w-28).

(4) MEDICARE ADVANTAGE PLAN.—The term “Medicare Advantage plan” means a health plan under part C of title XVIII of the Social Security Act (42 U.S.C. 1395w-21 et seq.).

(5) SECRETARY.—The term “Secretary” means the Secretary of Defense.

(6) TRICARE PROGRAM; TRICARE FOR LIFE.—The terms “TRICARE program” and “TRICARE for Life” have the meanings given those terms in section 1072 of title 10, United States Code.

(g) Regulations.—

(1) IN GENERAL.—In order to implement expeditiously the demonstration program under this section, the Secretary may prescribe such changes to the regulations implementing the TRICARE program as the Secretary considers appropriate.

(2) RULEMAKING.—The Secretary shall implement any changes prescribed under paragraph (1)—

(A) by prescribing an interim final rule; and

(B) not later than 180 days after prescribing such interim final rule and considering public comments with respect to such interim final rule, by prescribing a final rule.

(h) Waiver authority.—The Secretary of Health and Human Services may waive such requirements of titles XI and XVIII of the Social Security Act (42 U.S.C. 1301 et seq.; 1395 et seq.) as may be necessary for purposes of carrying out this section.

SEC. 702. Continued access to medical care at facilities of the uniformed services for certain members of the reserve components.

(a) TRICARE Reserve Select.—Paragraph (2) of section 1076d(f) of title 10, United States Code, is amended to read as follows:

“(2) The term ‘TRICARE Reserve Select’ means—

“(A) medical care at facilities of the uniformed services to which a dependent described in section 1076(a)(2) of this title is entitled; and

“(B) health benefits under the TRICARE Select self-managed, preferred provider network option under section 1075 of this title made available to beneficiaries by reason of this section and subject to the cost-sharing requirements set forth in such section 1075.”.

(b) TRICARE Retired Reserve.—Section 1076e is amended—

(1) In subsection (b), in the subsection heading, by striking “Retired Reserve”;

(2) In subsection (c), by striking “Retired Reserve” the last place it appears; and

(3) in subsection (f), by striking paragraph (2) and inserting the following:

“(2) The term ‘TRICARE Retired Reserve’ means—

“(A) medical care at facilities of the uniformed services to which a dependent described in section 1076(a)(2) of this title is entitled; and

“(B) health benefits under the TRICARE Select self-managed, preferred provider network option under section 1075 of this title made available to beneficiaries by reason of this section and subject to the cost-sharing requirements set forth in such section 1075.”.

SEC. 703. Modification of eligibility for TRICARE Reserve Select and TRICARE Retired Reserve of certain members of the reserve components.

(a) TRICARE Reserve Select.—Section 1076d(a) of title 10, United States Code, is amended—

(1) in paragraph (1), by striking “(1) Except as provided in paragraph (2), a member” and inserting “A member”; and

(2) by striking paragraph (2).

(b) TRICARE Retired Reserve.—Section 1076e(a) of title 10, United States Code, is amended—

(1) in paragraph (1), by striking “(1) Except as provided in paragraph (2), a member” and inserting “A member”; and

(2) by striking paragraph (2).

SEC. 704. Expedited evaluation and treatment for prenatal surgery under the TRICARE program.

(a) In general.—The Secretary of Defense shall implement processes and procedures to ensure that a covered beneficiary under the TRICARE program whose pregnancy is complicated with a fetal condition or suspected of being complicated with a fetal condition receives, in an expedited manner and at the discretion of the covered beneficiary, evaluation, non-directive counseling, and treatment from a perinatal or pediatric specialist capable of providing surgical management and intervention in utero.

(b) 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. 705. Specification that individuals under the age of 21 are eligible for hospice care services under the TRICARE program.

Section 1079(a)(15) of title 10, United States Code, is amended by inserting before the period at the end the following: “, except that hospice care may be provided to individuals under the age of 21”.

SEC. 706. Modifications of cost-sharing requirements for the TRICARE Pharmacy Benefits Program and treatment of certain pharmaceutical agents.

(a) In general.—Paragraph (6) of section 1074g(a) of title 10, United States Code, is amended to read as follows:

“(6) (A) In the case of any of the years 2018 through 2026, the cost-sharing amounts under this subsection for eligible covered beneficiaries shall be determined in accordance with the following table:


“For: The cost-sharing amount for a 30-day supply of a retail generic is: The cost-sharing amount for a 30-day supply of a retail formulary is: The cost-sharing amount for a 90-day supply of a mail order generic is: The cost-sharing amount for a 90-day supply of a mail order formulary is: The cost-sharing amount for a 90-day supply of a mail order non-formulary is:
2018 $10 $28 $10 $28 $54
2019 $10 $30 $10 $30 $58
2020 $10 $32 $10 $32 $62
2021 $11 $34 $11 $34 $66
2022 $11 $36 $11 $36 $70
2023 $11 $38 $11 $38 $75
2024 $12 $40 $12 $40 $80
2025 $13 $42 $13 $42 $85
2026 $14 $45 $14 $45 $90

“(B) For any year after 2026, the cost-sharing amounts under this subsection for eligible covered beneficiaries shall be equal to the cost-sharing amounts for the previous year adjusted by an amount, if any, determined by the Secretary to reflect changes in the costs of pharmaceutical agents and prescription dispensing, rounded to the nearest dollar.

“(C) Notwithstanding subparagraphs (A) and (B), the cost-sharing amounts under this subsection for a dependent of a member of the uniformed services who dies while on active duty, a member retired under chapter 61 of this title, or a dependent of a member retired under such chapter shall be equal to the cost-sharing amounts, if any, for 2017.”.

(b) Treatment of certain pharmaceutical agents.—

(1) PHARMACY BENEFITS PROGRAM.—Such section is amended by adding at the end the following new paragraph:

“(10) Notwithstanding paragraphs (2), (5), and (6), in order to encourage the use by covered beneficiaries of pharmaceutical agents that provide the greatest value to covered beneficiaries and the Department of Defense (as determined by the Secretary, including considerations of better care, healthier people, and smarter spending), the Secretary may, upon the recommendation of the Pharmacy and Therapeutics Committee established under subsection (b) and review by the Uniform Formulary Beneficiary Advisory Panel established under subsection (c)—

“(A) exclude from the pharmacy benefits program any pharmaceutical agent that the Secretary determines provides very little or no value to covered beneficiaries and the Department under the program; and

“(B) give preferential status to any non-generic pharmaceutical agent on the uniform formulary by treating it, for purposes of cost-sharing under paragraph (6), as a generic product under the TRICARE retail pharmacy program and mail order pharmacy program.”.

(2) MEDICAL CONTRACTS.—Section 1079 of such title is amended by adding at the end the following new subsection:

“(q) In the case of any pharmaceutical agent (as defined in section 1074g(g) of this title) provided under a contract entered into under this section by a physician, in an outpatient department of a hospital, or otherwise as part of any medical services provided under such a contract, the Secretary of Defense may, under regulations prescribed by the Secretary, adopt special reimbursement methods, amounts, and procedures to encourage the use of high-value products and discourage the use of low-value products, as determined by the Secretary.”.

(3) REGULATIONS.—In order to implement expeditiously the reforms authorized by the amendments made by paragraphs (1) and (2), the Secretary of Defense may prescribe such changes to the regulations implementing the TRICARE program (as defined in section 1072 of title 10, United States Code) as the Secretary considers appropriate—

(A) by prescribing an interim final rule; and

(B) not later than one year after prescribing such interim final rule and considering public comments with respect to such interim final rule, by prescribing a final rule.

SEC. 707. Consolidation of cost-sharing requirements under TRICARE Select and TRICARE Prime.

(a) TRICARE Select.—

(1) IN GENERAL.—Section 1075 of title 10, United States Code, is amended—

(A) in subsection (c), by striking paragraphs (1) and (2) and inserting the following new paragraphs:

“(1) With respect to beneficiaries in the active-duty family member category or the retired category other than beneficiaries described in paragraph (2)(B), the cost-sharing requirements shall be calculated pursuant to subsection (d)(1).

“(2) (A) 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 the following beneficiaries:

“(i) Retired members and the family members of such retired members covered by section 1086(c)(1) of this title by reason of being retired under chapter 61 of this title or being a dependent of such a retired member.

“(ii) Survivors covered by section 1086(c)(2) of this title.”;

(B) by striking subsection (e); and

(C) by redesignating subsections (f), (g), and (h) as subsections (e), (f), and (g), respectively.

(2) CONFORMING AMENDMENT.—Subsection (d)(2) of such section is amended by striking “, and the amounts specified under paragraphs (1) and (2) of subsection (e),”.

(b) TRICARE Prime.—Section 1075a(a) of title 10, United States Code, is amended—

(1) by striking paragraph (2) and inserting the following new paragraph:

“(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) other than beneficiaries described in paragraph (3)(B), the cost-sharing requirements shall be calculated pursuant to subsection (b)(1).”; and

(2) in paragraph (3), by striking subparagraph (B) and inserting the following new subparagraph:

“(B) Beneficiaries described in this subparagraph are the following beneficiaries:

“(i) Retired members and the family members of such retired members covered by section 1086(c)(1) of this title by reason of being retired under chapter 61 of this title or being a dependent of such a retired member.

“(ii) Survivors covered by section 1086(c)(2) of this title.”.

(c) Effective date.—The amendments made by this section shall take effect on January 1, 2018.

SEC. 708. TRICARE technical amendments.

(a) Definition of TRICARE Standard.—Paragraph (15) of section 1072 of title 10, United States Code, is amended to read as follows:

“(15) The term ‘TRICARE Standard’ means the TRICARE program made available prior to January 1, 2018, covering health benefits contracted for under the authority of section 1079(a) or 1086(a) of this title and subject to the same rates and conditions as apply to persons covered under those sections.”.

(b) Cost-sharing amounts.—

(1) TRICARE SELECT.—

(A) ALLOWANCE OF COST-SHARING AMOUNTS AS DETERMINED BY THE SECRETARY.—Subsection (d) of section 1075 of such title is amended by adding at the end the following new paragraph:

“(4) The cost-sharing requirements applicable to services not specifically addressed in the table set forth in paragraph (1) shall be established by the Secretary.”.

(B) MODIFICATION OF REFERENCE TO AMBULANCE CIVILIAN NETWORK.—Paragraph (1) of such subsection is amended, in the first column of the table, by striking “Ambulance civilian network” and inserting “Ground ambulance civilian network”.

(2) TRICARE PRIME.—

(A) ALLOWANCE OF COST-SHARING AMOUNTS AS DETERMINED BY THE SECRETARY.—Subsection (b) of section 1075a of such title is amended by adding at the end the following new paragraph:

“(4) The cost-sharing requirements applicable to services not specifically addressed in the table set forth in paragraph (1) shall be established by the Secretary.”.

(B) MODIFICATION OF REFERENCE TO AMBULANCE CIVILIAN NETWORK.—Paragraph (1) of such section is amended, in the first column of the table, by striking “Ambulance civilian network” and inserting “Ground ambulance civilian network”.

(c) Medical care for dependents.—

(1) REFERENCE TO MEDICALLY NECESSARY VITAMINS.—Paragraphs (3) and (18) of section 1077(a) of such title are amended by striking “subsection (g)” each place it appears and inserting “subsection (h)”.

(2) ELIGIBILITY OF DEPENDENTS TO PURCHASE HEARING AIDS.—Section 1077(g) of such title is amended by striking “of former members of the uniformed services” and inserting “eligible for care under this section”.

(d) Modification of reference to fiscal year.—

(1) CONTRACTS FOR MEDICAL CARE FOR SPOUSES AND CHILDREN.—Section 1079(b) such title is amended by striking “fiscal year” each place it appears and inserting “calendar year”.

(2) CONTRACTS FOR HEALTH BENEFITS FOR CERTAIN MEMBERS, FORMER MEMBERS, AND THEIR DEPENDENTS.—Section 1086(b) of such title is amended by striking “fiscal year” each place it appears and inserting “calendar year”.

(e) Referrals and preauthorizations for TRICARE Prime.—

(1) PREAUTHORIZATION FOR CARE AT RESIDENTIAL TREATMENT CENTERS.—Section 1095f(b) of such title is amended by adding at the end the following new paragraph:

“(4) Inpatient care at a residential treatment center.”.

(2) REFERENCE.—Section 1075a(c) of such title is amended by striking “section 1075f(a)” and inserting“section 1095f(a)”.

(f) Applicability of premium for dependent coverage.—Section 1110b(c)(1) of such title is amended by striking “section 1075 of this section” and inserting “section 1075 or 1075a of this title, as appropriate”.

SEC. 709. Contraception coverage parity under the TRICARE program.

(a) In general.—Section 1074d of title 10, United States Code, is amended—

(1) in subsection (a)—

(A) in the subsection heading, by inserting “for members and former members” after “Services available”; and

(B) in paragraph (1), by striking “subsection (b)” and inserting “subsection (d)”;

(2) by redesignating subsection (b) as subsection (d); and

(3) by inserting after subsection (a) the following new subsections:

“(b) Care related to prevention of pregnancy.—Female covered beneficiaries shall be entitled to care related to the prevention of pregnancy described in subsection (d)(3).

“(c) Prohibition on cost-Sharing for certain services.—Notwithstanding section 1074g(a)(6), section 1075, or section 1075a of this title or any other provision of law, cost-sharing may not be imposed or collected for care related to the prevention of pregnancy provided pursuant to subsection (a) or (b), including for any method of contraception provided, whether provided through a facility of the uniformed services, the TRICARE retail pharmacy program, or the national mail-order pharmacy program.”.

(b) Care related to prevention of pregnancy.—Subsection (d)(3) of such section, as redesignated by subsection (a)(2), is further amended by inserting before the period at the end the following: “(including all methods of contraception approved by the Food and Drug Administration, contraceptive care (including with respect to insertion, removal, and follow up), sterilization procedures, and patient education and counseling in connection therewith)”.

(c) Conforming amendment.—Section 1077(a)(13) of such title is amended by striking “section 1074d(b)” and inserting “section 1074d(d)”.

(d) Effective date.—The amendments made by this section shall take effect on October 1, 2018.

subtitle BHealth Care Administration

SEC. 721. Modification of priority for evaluation and treatment of individuals at military treatment facilities.

Subsection (b) of section 717 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended to read as follows:

“(b) Priority of covered beneficiaries.—

“(1) IN GENERAL.—Except as provided in paragraph (2), 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).

“(2) WAIVER.—The Secretary may waive the requirement under paragraph (1) in order to provide timely evaluation and treatment for individuals who are—

“(A) severely wounded or injured by acts of terror that occur in the United States; or

“(B) residents of the United States who are severely wounded or injured by acts of terror outside the United States.”.

SEC. 722. Selection of directors of military treatment facilities and tours of duty of such directors.

(a) In general.—Not later than January 1, 2019, the Secretary of Defense shall do the following:

(1) Develop the common qualifications and core competencies required of military and civilian individuals for selection as directors of military treatment facilities.

(2) Establish a minimum length for the tour of duty of a member of the Armed Forces serving as a director of a military treatment facility.

(b) Qualifications and competencies.—

(1) STANDARDS.—In developing common qualifications and core competencies under subsection (a)(1), the Secretary shall include standards with respect to the following:

(A) Professional competence.

(B) Moral and ethical integrity and character.

(C) Formal education in healthcare executive leadership and healthcare management.

(D) Such other matters as the Secretary considers appropriate.

(2) OBJECTIVE.—The objective of the Secretary in developing such qualifications and competencies shall be to ensure that the individuals selected as directors of military treatment facilities are highly qualified to serve as health system executives in a medical treatment facility of the Armed Forces.

(c) Tours of duty.—

(1) IN GENERAL.—Except as provided in paragraph (2), in the case of a director of a military treatment facility who is a member of the Armed Forces, the length of the tour of duty of any such director assigned to such position after January 1, 2019, may not be shorter than the longer of—

(A) the length established pursuant to subsection (a)(2); or

(B) three years.

(2) WAIVER.—The Secretary may authorize a tour of duty of a member of the Armed Forces serving as a director of a military treatment facility of a shorter length than is otherwise provided for in paragraph (1) if the Secretary determines, in the discretion of the Secretary, that there is good cause for a tour of duty in such position of shorter length. Any such determination shall be made on a case-by-case basis.

SEC. 723. Clarification of administration of military medical treatment facilities.

Section 1073c(a) of title 10, United States Code, is amended—

(1) in paragraph (1)(E), by striking “miliary” and inserting “military”;

(2) in paragraph (2), in the matter preceding subparagraph (A), by striking “commander of each military medical treatment facility” and inserting “military or civilian director of each military medical treatment facility, under the authority, direction, and control of the Director of the Defense Health Agency,”; and

(3) by adding at the end the following new paragraph:

“(4) If the Secretary of Defense determines it appropriate, a military director (or any other senior military officer or officers) of a military medical treatment facility may be a commanding officer for purposes of chapter 47 of this title (the Uniform Code of Military Justice) with respect to military personnel assigned to the military medical treatment facility.”.

SEC. 724. Modification of execution of TRICARE contracting responsibilities.

Subsection (b) of section 705 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended to read as follows:

“(b) Execution of contracting responsibility.—With respect to any acquisition of managed care support services under the TRICARE program initiated after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2018, the Under Secretary of Defense for Acquisition and Sustainment shall serve as the authority for decisions relating to such acquisition and shall be responsible for approving the acquisition strategy and conducting pre-solicitation, pre-award, and post-award acquisition reviews.”.

SEC. 725. Pilot program on establishment of integrated health care delivery systems.

(a) In general.—Beginning not later than one year after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Secretary of Veterans Affairs and the Secretary of Health and Human Services, shall carry out a pilot program to establish integrated health care delivery systems among the military health system, other Federal health systems, and private sector integrated health systems.

(b) Duration of pilot program.—The Secretary of Defense shall carry out the pilot program for a period of not less than five years.

(c) Implementation of pilot program.—

(1) ESTABLISHMENT OF TASK FORCE.—The Secretary shall establish a multi-disciplinary task force of Federal and private sector health care experts (in this section referred to as the “Task Force”) to develop a plan to implement the pilot program.

(2) MEMBERSHIP OF TASK FORCE.—

(A) IN GENERAL.—The Task Force shall be composed of senior health care representatives from—

(i) the Department of Defense;

(ii) the Department of Veterans Affairs;

(iii) the Centers for Medicare & Medicaid Services;

(iv) high-performance, integrated health systems in the private sector; and

(v) health information technology organizations in the private sector.

(B) ADDITIONAL MEMBERS.—The Secretary may appoint additional members of the Task Force from the private sector as the Secretary considers appropriate.

(3) SUBMITTAL OF PLAN.—Not later than 180 days after the date of the enactment of this Act, the Task Force shall submit to the Secretary an implementation plan for the pilot program.

(4) NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.—The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Task Force.

(d) Elements.—The pilot program shall be developed and carried out as follows:

(1) To create high-value integrated health systems that—

(A) establish value-based models of reimbursement for health care providers in integrated health care delivery systems to promote medical innovation and create better health value for patients;

(B) provide innovative health benefit design solutions to promote effective, efficient, and affordable health care; and

(C) tailor case management and care coordination for high-need, high-cost patients.

(2) To empower health care providers with real-time advanced information technology solutions—

(A) to coordinate and manage health care services across the continuum of care; and

(B) to leverage sophisticated data capture, cloud computing, and data analytical tools to provide predictive modeling capabilities for health care providers.

(3) To empower patients with transparent information on health care costs, quality outcomes, and safety within health care provider networks in high-value integrated health systems.

(4) To provide incentives to patients and health care providers to prevent overuse of low-value health care services.

(e) Reports.—

(1) REPORT ON IMPLEMENTATION.—Not later than 270 days after the date of the enactment of this Act, the Secretary shall transmit to the Committees on Armed Services of the Senate and the House of Representatives the implementation plan submitted to the Secretary under subsection (c)(3).

(2) FINAL REPORT.—

(A) IN GENERAL.—Not later than four years after the date that the pilot program begins, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report assessing the pilot program.

(B) ELEMENTS.—The report submitted under subparagraph (A) shall provide the following:

(i) An analysis of the impact of the pilot program on building sustainable integrated health care delivery systems among the military health system, other Federal health systems, and private sector integrated health systems.

(ii) A determination of the extent to which value-based health care reimbursement models create value for patients and the health systems participating in the pilot program.

(iii) A determination of the extent to which the use of real-time advanced information technology solutions—

(I) improves coordination and management of health care services across the continuum of care; and

(II) leverages sophisticated data capture, cloud computing, and data analytical tools to provide comprehensive predictive modeling capabilities for health care providers.

(iv) A determination of the extent to which transparency of health care costs, health care quality outcomes, and patient safety within health care provider networks encourages patients to seek care from health care providers who provide high-quality health outcomes at lower cost.

(v) A determination of the extent to which patient and provider incentives prevent overuse of low-value health services.

(vi) A determination of the extent to which the pilot program should be expanded and implemented on a permanent basis.

subtitle CReports and Other Matters

SEC. 731. Extension of authority for Joint Department of Defense-Department of Veterans Affairs Medical Facility Demonstration Fund.

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), section 723 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92), and section 741(a) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is further amended by striking “September 30, 2018” and inserting “September 30, 2019”.

SEC. 732. Additional emergency uses for medical products to reduce deaths and severity of injuries caused by agents of war.

Section 1107a of title 10, United States Code, is amended by adding at the end the following new subsection:

“(d) Additional authority to reduce deaths and severity of injuries caused by agents of war.— (1) In a case in which an emergency use of an unapproved product or an emergency unapproved use of an approved product cannot be authorized under section 564 of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 360bbb–3) because the emergency does not involve an actual or threatened attack with a biological, chemical, radiological, or nuclear agent or agents, the Secretary of Defense may authorize an emergency use outside the United States of the product to reduce the number of deaths or the severity of harm to members of the armed forces (or individuals associated with deployed members of the armed forces) caused by a risk or agent of war.

“(2) Except as otherwise provided in this subsection, an authorization by the Secretary under paragraph (1) shall have the same effect with respect to the armed forces as an emergency use authorization under section 564 of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 360bbb–3).

“(3) The Secretary may issue an authorization under paragraph (1) with respect to the emergency use of an unapproved product or the emergency unapproved use of an approved product only if—

“(A) the committee established under paragraph (5) has recommended that the Secretary issue the authorization; and

“(B) the Assistant Secretary of Defense for Health Affairs makes a written determination, after consultation with the Commissioner of Food and Drugs, that, based on the totality of scientific evidence available to the Assistant Secretary, criteria comparable to those specified in section 564(c) of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 360bbb–3(c)) have been met.

“(4) With respect to the emergency use of an unapproved product or the emergency unapproved use of an approved product under this subsection, the Secretary of Defense shall establish such scope, conditions, and terms under this subsection as the Secretary considers appropriate, including scope, conditions, and terms comparable to those specified in section 564 of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 360bbb–3).

“(5) (A) There is established in the Department of Defense a Department of Defense Emergency Use Authorization Committee (in this paragraph referred to as the ‘Committee’) to advise the Assistant Secretary of Defense for Health Affairs on proposed authorizations under this subsection.

“(B) Members of the Committee shall be appointed by the Secretary of Defense and shall consist of prominent health care professionals who are not employees of the Department of Defense (other than for purposes of serving as a member of the Committee).

“(C) The Committee may be established as a subcommittee of another Federal advisory committee.

“(6) In this subsection:

“(A) The term ‘biological product’ has the meaning given that term in section 351(i) of the Public Health Service Act (42 U.S.C. 262(i)).

“(B) The terms ‘device’ and ‘drug’ have the meanings given those terms in section 201 of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 321).

“(C) The term ‘product’ means a drug, device, or biological product.

“(D) The terms ‘unapproved product’ and ‘unapproved use of an approved product’ have the meanings given those terms in section 564(a)(4) of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 360bbb–3(a)(4)).”.

SEC. 733. Prohibition on conduct of certain medical research and development projects.

The Secretary of Defense and each Secretary of a military department may not fund or conduct a medical research and development project unless the Secretary funding or conducting the project—

(1) submits to the Committees on Armed Services of the Senate and the House of Representatives a written certification that the project is designed to directly protect, enhance, or restore the health and safety of members of the Armed Forces; and

(2) does not initiate the funding or conduct of such project until the date that is 90 days after the submittal of such written certification.

SEC. 734. Modification of determination of average wait times at urgent care clinics and pharmacies at military medical treatment facilities under pilot program.

(a) Urgent care clinics.—Subsection (c)(2) of section 744 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended to read as follows:

“(2) DETERMINATION.—In carrying out paragraph (1), the Secretary shall determine the average wait time to display under such paragraph by using a formula derived from best practices in the health care industry.”.

(b) Pharmacies.—Subsection (d)(2) of such section is amended to read as follows:

“(2) DETERMINATION.—In carrying out paragraph (1), the Secretary shall determine the average wait time to display under such paragraph by using a formula derived from best practices in the health care industry.”.

SEC. 735. Report on plan to improve pediatric care and related services for children of members of the Armed Forces.

(a) 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 setting forth a plan of the Department of Defense to improve pediatric care and related services for children of members of the Armed Forces.

(b) Elements.—The report required by subsection (a) shall include the following:

(1) In order to ensure that children receive developmentally-appropriate and age-appropriate health care services from the Department, a plan to align preventive pediatric care under the TRICARE program with—

(A) standards for such care as required by the Patient Protection and Affordable Care Act (Public Law 111–148);

(B) guidelines established for such care by the Early and Periodic Screening, Diagnosis, and Treatment program under the Medicaid program carried out under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.); and

(C) recommendations by organizations that specialize in pediatrics.

(2) A plan to develop a uniform definition of “pediatric medical necessity” for the Department that aligns with recommendations of organizations that specialize in pediatrics in order to ensure that a consistent definition of such term is used in providing health care in military treatment facilities and by health care providers under the TRICARE program.

(3) A plan to revise certification requirements for residential treatment centers of the Department to expand the access of children of members of the Armed Forces to services at such centers.

(4) A plan to develop measures to evaluate and improve access to pediatric care, coordination of pediatric care, and health outcomes for such children.

(5) A plan to include an assessment of access to pediatric specialty care in the annual report to Congress on the effectiveness of the TRICARE program.

(6) A plan to improve the quality of and access to behavioral health care under the TRICARE program for children of members of the Armed Forces, including intensive outpatient and partial hospitalization services.

(7) A plan to mitigate the impact of permanent changes of station and other service-related relocations of members of the Armed Forces on the continuity of health care services received by such children who have special medical or behavioral health needs.

(8) A plan to mitigate deficiencies in data collection, data utilization, and data analysis to improve pediatric care and related services for children of members of the Armed Forces.

(c) TRICARE program defined.—In this section, the term “TRICARE program” has the meaning given such term in section 1072 of title 10, United States Code.

SEC. 736. Inclusion of gambling disorder in health assessments and related research efforts of the Department of Defense.

(a) Annual Periodic Health Assessment.—The Secretary of Defense shall incorporate medical screening questions specific to gambling disorder into the Annual Periodic Health Assessment (DD Form 3024) conducted by the Department of Defense for members of the Armed Forces.

(b) Research efforts.—The Secretary shall incorporate into ongoing research efforts of the Department questions on gambling disorder, as appropriate, including by restoring such questions into the Health Related Behaviors Survey of Active Duty Military Personnel.

TITLE VIIIAcquisition policy, acquisition management, and related matters

subtitle AAcquisition policy and management

SEC. 801. Repeal of temporary suspension of public-private competitions for conversion of Department of Defense functions to performance by contractors.

Effective as of the date that is one year after the date of the enactment of this Act, section 325 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2253) is repealed.

SEC. 802. Technical and conforming amendments related to program management provisions.

(a) Repeal of duplicative provision related to program and project management.—Subsection (c) of section 503 of title 31, United States Code, as added by section 861(a)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2298), is repealed.

(b) Repeal of duplicative provision related to program management officers and program management policy council.—Section 1126 of title 31, United States Code, as added by section 861(b)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2299), is repealed.

(c) Repeal of obsolete provisions.—Section 861 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2299) is amended—

(1) in subsection (a), by striking paragraphs (2) and (3);

(2) in subsection (b), by striking paragraph (2); and

(3) by striking subsections (c) and (d).

SEC. 803. Should-cost management.

(a) Requirement for regulations.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall amend the Defense Supplement to the Federal Acquisition Regulation to provide for the appropriate use of the should-cost review process in a manner that is transparent, objective, and provides for the efficiency of the systems acquisition process in the Department of the Defense.

(b) Required elements.—The regulations required under subsection (a) shall incorporate, at a minimum, the following elements:

(1) A description of the features distinguishing a should-cost review and the analysis of program direct and indirect costs.

(2) Establishment of a process for communicating with the contractor the elements of a proposed should-cost review.

(3) A method for ensuring that identified should-cost savings opportunities are based on accurate, complete, and current information and are associated with specific engineering or business changes that can be quantified and tracked.

(4) A description of the training, skills, and experience, including cross functional experience, that Department of Defense and contractor officials carrying out a should-cost review in subsection (a) should possess.

(5) A method for ensuring appropriate collaboration with the contractor throughout the review process.

(6) Establishment of review process requirements that provide for sufficient analysis and minimize any impact on program schedule.

(7) A requirement that any separate audit or review carried out in connection with the should-cost review be provided to the prime contractor under the program.

SEC. 804. Clarification of purpose of Defense acquisition.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall amend the Defense Federal Acquisition Regulation as appropriate to provide the following:

(1) The Defense Acquisition System exists to manage the nation's investments in technologies, programs, and product support necessary to achieve the National Security Strategy and support the United States Armed Forces.

(2) The investment strategy of the Department of Defense shall be postured to support not only today's force, but also the next force, and future forces beyond that.

(3) The primary objective of Defense acquisition is to acquire quality products that satisfy user needs with measurable improvements to mission capability and operational support, in a timely manner, and at a fair and reasonable price.

SEC. 805. Defense policy advisory committee on technology.

(a) Establishment.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall form a committee of senior executives from United States firms in the national technology and industrial base to meet with the Secretary, the Secretaries of the military departments, and members of the Joint Chiefs of Staff to exchange information, including, as appropriate, classified information, on technology threats to the national security of the United States and on the emerging technologies from the national technology and industrial base that may become available to counter such threats in a timely manner.

(b) Meetings.—The defense policy advisory committee on technology formed pursuant to subsection (a) shall meet with the Secretary and the other Department of Defense officials specified in such subsection collectively at least once annually in each of fiscal years 2018 through 2022. The Secretary of Defense shall provide the congressional defense committees annual briefings on the meetings.

(c) Federal Advisory Committee Act.—The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the defense policy advisory committee on technology established pursuant to this section.

SEC. 806. Report on extension of development, acquisition, and sustainment authorities of the military departments to the United States Special Operations Command.

(a) Review.—The Secretary of Defense shall carry out a review of the authorities available to the Secretaries of the military departments and the acquisition executives of the military departments for the development, acquisition, and sustainment of technology, equipment, and services for the military departments in order to determine the feasibility and advisability of the provision of such authorities to the Commander of the United States Special Operations Command and the acquisition executive of the Command for the development, acquisition, and sustainment of special operations-peculiar technology, equipment, and services.

(b) Report.—Not later than 120 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 on the review required by subsection (a). The report shall include the following:

(1) A description of the review.

(2) An identification of the authorities the Secretary recommends for provision to the Commander of the United States Special Operations Command and the acquisition executive of the Command as described in subsection (a), and recommendations for any modifications of such authorities that the Secretary considers appropriate for purposes of the United States Special Operations Command.

(3) Such recommendations for legislative or administrative action as the Secretary considers appropriate for the provision of authorities identified pursuant to paragraph (2) as described in subsection (a).

(4) Such other matters as the Secretary considers appropriate in light of the review.

subtitle BAmendments to general contracting authorities, procedures, and limitations

SEC. 811. Waiver authority for purposes of expanding competition.

Section 2304 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(m) In the event the application of any provision of law results in only one responsible bidder for a contract, the Secretary of Defense may waive such provision of law (other than subsection (c)) for purposes of expanding competition for the contract.”.

SEC. 812. Increased simplified acquisition threshold applicable to Department of Defense procurements.

(a) Increased simplified acquisition threshold.—

(1) IN GENERAL.—Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section:

§ 2339a. Simplified acquisition threshold

“ Notwithstanding section 134 of title 41, the simplified acquisition threshold for the Department of Defense for purposes of such section is $250,000.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following new item:


“2339a. Simplified acquisition threshold.”.

(b) Conforming amendment.—Section 134 of title 41, United States Code, is amended by striking “In division B” and inserting “Except as provided in section 2339a of title 10, in division B”.

SEC. 813. Increased threshold for cost or pricing data and truth in negotiations requirements.

Section 2306a of title 10, United States Code, is amended by striking “$500,000” each place it appears and inserting “$1,000,000”.

SEC. 814. Contract authority for advanced development of initial or additional prototype units.

(a) Permanent authority.—

(1) IN GENERAL.—Chapter 137 of title 10, United States Code, is amended by inserting after section 2302d the following new section:

§ 2302e. Contract authority for advanced development of initial or additional prototype units

“(a) Authority.—A contract initially awarded from the competitive selection of a proposal resulting from a general solicitation referred to in section 2302(2)(B) of this title may contain a contract line item or contract option for—

“(1) the provision of advanced component development, prototype, or initial production of technology developed under the contract; or

“(2) the delivery of initial or additional items if the item or a prototype thereof is created as the result of work performed under the contract.

“(b) Limitations.—

“(1) MINIMAL AMOUNT.—A contract line item or contract option described in subsection (a)(2) shall require the delivery of the minimal amount of initial or additional items to allow for the timely competitive solicitation and award of a follow-on development or production contract for those items.

“(2) TERM.—A contract line item or contract option described in subsection (a) shall be for a term of not more than 2 years.

“(3) DOLLAR VALUE OF WORK.—The dollar value of the work to be performed pursuant to a contract line item or contract option described in subsection (a) may not exceed the amount of expenditure consistent with a major system, as defined in section 2302d of this title.

“(4) APPLICABILITY.—The authority provided in subsection (a) applies only to the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2302d the following new item:


“2302e. Contract authority for advanced development of initial or additional prototype units.”.

(b) Modification of competitive procedures definition.—Section 2302(2)(B) of title 10, United States Code, is amended by striking “basic research proposals” and inserting “proposals for basic research, applied research, advanced research, or development projects”.

(c) Repeal of obsolete authority.—Section 819 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 107–314; 10 U.S.C. 2302 note) is hereby repealed.

SEC. 815. Treatment of independent research and development costs on certain contracts.

(a) Threshold for establishing advisory panel related to goal for reimbursable bid and proposal costs.—Section 2372a(d)(1) of title 10, United States Code, as added by section 824(b)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is amended by striking “If the Department of Defense exceeds the goal established under subsection (c) for a fiscal year, within 180 days after exceeding the goal” and inserting “If the amount of reimbursable bid and proposal costs paid by the Department of Defense for a fiscal year exceeds .75 percent of the total aggregate industry sales to the Department for such fiscal year, within 180 days of exceeding such threshold”.

(b) Independent research and development costs: allowable costs.—Section 2372(d) of title 10, United States Code, as amended by section 824(a)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is further amended by striking “subsection (c)(3)(A)” and inserting “subsection (c)(2)(A)”.

SEC. 816. Non-traditional contractor definition.

Section 2302(9) of title 10, United States Code, is amended by striking “means an entity that is not currently performing” and inserting “means a specific business unit or function with a unique entity identifier that is not currently performing”.

SEC. 817. Repeal of domestic source restriction related to wearable electronics.

Section 2533a(b)(2) of title 10, United States Code, is amended by inserting “(excluding wearable electronics)” after “Hand or measuring tools”.

SEC. 818. Use of outcome-based and performance-based requirements for services contracts.

(a) Justification requirement for use of personnel and labor hour requirements.—The Department of Defense may not enter into a contract for the procurement of services valued in excess of $10,000,000 based on specific descriptive personnel and labor hour requirements unless the program manager and contracting officer first submit to the Under Secretary of Defense for Acquisition and Sustainment a written justification including the reasons for basing the contract on those requirements instead of outcome- or performance-based requirements.

(b) Comptroller General report.—Not later than two years 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 justifications submitted pursuant to subsection (a). The report shall review the adequacy of the justifications and identify any reoccurring obstacles to the use of outcome- and performance-based requirements instead of specified personnel and labor hour requirements for purposes of awarding services contracts.

(c) Sunset.—The requirements under this section shall terminate at the close of September 30, 2022.

SEC. 819. Pilot program for longer term multiyear service contracts.

(a) In general.—The Secretary of Defense may use the authority under subsection (a) of section 2306c of title 10, United States Code, to enter into up to five contracts for periods of not more than 10 years for services described in subsection (b) of such section. Each contract entered into pursuant to this subsection may be extended for up to five additional one-year terms.

(b) Study.—

(1) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Secretary of Defense shall enter into an agreement with an independent organization with relevant expertise to study best practices and lessons learned from using services contracts for periods longer than five years by commercial companies, foreign governments, and State governments, as well as service contracts for periods longer than five years used by the Federal Government, such as Energy Savings Performance Contracts.

(2) REPORT.—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 study conducted under paragraph (1).

(c) Comptroller General report.—Not later than two years 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 pilot program carried out under this section.

SEC. 820. Identification of commercial services.

Section 876 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2311) is amended—

(1) by striking “Not later than” and inserting “(a) In general.—Not later than”; and

(2) by adding at the end the following new subsection:

“(b) Identification of industry subcategories.—In preparing the guidance required under subsection (a), the Secretary shall identify those industry subcategories in facilities-related services, knowledge-based services (except engineering services), construction services, medical services, or transportation services in which there are significant numbers of commercial services providers able to meet the requirements of the Department of Defense.”.

SEC. 821. Government Accountability Office bid protest reforms.

(a) In general.—Chapter 137 of title 10, United States Code, as amended by section 812, is further amended by adding at the end the following new section:

§ 2340. Government Accountability Office bid protests

“(a) Payment of costs for denied protests.—

“(1) IN GENERAL.—A contractor who files a protest described under paragraph (2) with the Government Accountability Office on a contract with the Department of Defense shall pay to the Department of Defense costs incurred for processing a protest at the Government Accountability Office and the Department of Defense.

“(2) COVERED PROTESTS.—A protest described under this paragraph is a protest—

“(A) all of the elements of which are denied in an opinion issued by the Government Accountability Office; and

“(B) filed by a party with revenues in excess of $100,000,000 during the previous year.

“(b) Withholding of payments above incurred costs of incumbent contractors.—

“(1) IN GENERAL.—Contractors who file a protest on a contract on which they are the incumbent contractor shall have all payments above incurred costs withheld on any bridge contracts or temporary contract extensions awarded to the contractor as a result of a delay in award resulting from the filing of such protest.

“(2) DISPOSITION OF WITHHELD PAYMENTS ABOVE INCURRED COSTS.—

“(A) RELEASE TO INCUMBENT CONTRACTOR.—All payments above incurred costs of a protesting incumbent contractor withheld pursuant to paragraph (1) shall be released to the protesting incumbent contractor if—

“(i) the solicitation that is the subject of the protest is cancelled and no subsequent request for proposal is released or planned for release; or

“(ii) if the Government Accountability Office issues an opinion that upholds any of the protest grounds filed under the protest.

“(B) RELEASE TO AWARDEE.—Except for the exceptions set forth in subparagraph (A), all payments above incurred costs of a protesting incumbent contractor withheld pursuant to paragraph (1) shall be released to the contractor that was awarded the protested contract prior to the protest.

“(C) RELEASE TO DEPARTMENT OF DEFENSE IN EVENT OF NO CONTRACT AWARD.—Except for the exceptions set forth in subparagraph (A), if a protested contract for which payments above incurred costs are withheld under paragraph (1) is not awarded to a contractor, the withheld payments shall be released to the Department of Defense and deposited into an account that can be used by the Department to offset costs associated with Government Accountability Office bid protests.”.

(b) Clerical amendment.—The table of sections for such chapter, as amended by section 812(a)(2) of this Act, is further amended by inserting after the item relating to section 2339a the following new item:


“2340. Government Accountability Office bid protests.”.

SEC. 822. Enhanced post-award debriefing rights.

(a) Release of contract award information.—Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to require that all required post-award debriefings must provide detailed and comprehensive statements of the agency’s rating for each evaluation criteria and of the agency’s overall award decision. With regard to protecting the confidential and proprietary information of other offerors, the revision shall encourage the release to the company of all information that otherwise would be releaseable in the course of a bid protest challenge to an award. At a minimum, the revisions shall include—

(1) a requirement for disclosure of the agency’s written source selection award determination, redacted if necessary to protect other offerors’ confidential and proprietary information;

(2) a requirement for a combined written and oral debriefing for all contract awards and task or delivery orders valued at $10,000,000 or higher;

(3) a requirement for an option, at an offerors’ election, for access to an unredacted copy of the source selection award determination and the supporting agency record for outside counsel or other appropriate outside representative for all contract awards and task or delivery orders valued at $10,000,000 or higher;

(4) provisions ensuring that both losing and winning offerors are entitled to the applicable enhanced post-award debriefing rights; and

(5) robust procedures, consistent with section 2305(b)(5)(C) of title 10, United States Code, and section 15.506(e) of the Federal Acquisition Regulation, to protect the confidential and proprietary information of other offerors.

(b) Opportunity for follow-up questions.—Section 2305(b)(5) of title 10, United States Code, is amended—

(1) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D), (E), and (F), respectively;

(2) in subparagraph (B)—

(A) in clause (v), by striking “; and” and inserting a semicolon;

(B) in clause (vi), by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following new clause:

“(vii) an opportunity for a disappointed offeror to submit within two business days of receiving a post-award debriefing additional, follow-up questions related to the debriefing.”; and

(3) by inserting after subparagraph (B) the following new subparagraph:

“(C) The agency shall respond in writing to additional, follow-up questions submitted under subparagraph (B) within five business days. The debriefing will not be considered concluded until the agency delivers its written responses to the disappointed offeror.”.

(c) Commencement of post-briefing period.—Section 3553(d)(4) of title 31, United States Code, is amended—

(1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) respectively;

(2) by striking “The period” and inserting “(A) The period”; and

(3) by adding at the end the following new subparagraph:

“(B) For procurements conducted by any component of the Department of Defense, the five-day post-debriefing period does not commence until the day the Government delivers to a disappointed offeror the written responses to any questions submitted pursuant to section 2305(5)(B)(vii) of title 10.”.

(d) Decisions on protests.—Section 3554(a)(1) of title 31, United States Code, is amended by striking the period at the end and inserting the following: “for all protests arising from agencies outside the Department of Defense and within 65 days after the date the protest is submitted to the Comptroller General for all protests arising from the Department of Defense and its subordinate agencies. In protests arising from the Department of Defense and its subordinate agencies which present unusually complex issues or large agency records, the Comptroller General may extend the time for decision but in no event later than 100 days after the protest is submitted.”.

SEC. 823. Limitation on unilateral definitization.

(a) Limitation.—Section 2326 of title 10, United States Code, is amended —

(1) by redesignating subsections (c), (d), (e), (f), (g), (h), and (i) as subsections (d), (e), (f), (g), (h), (i), and (j) respectively; and

(2) by inserting after subsection (b) the following new subsection:

“(c) Limitation on unilateral definitization by the contracting officer.—The following limitation applies to all undefinitized contractual actions with a not to exceed value of $50,000,000 or greater:

“(1) If agreement is not reached on contractual terms, specifications, and price by a date certain, as required under subsection (b)(1), the contracting officer may not unilaterally definitize those terms, specifications and price over the objection of the contractor until—

“(A) the head of the agency approves the definitization in writing;

“(B) the contracting officer provides the written approval to the contractor; and

“(C) the head of the agency notifies the congressional defense committees of the approval.

“(2) The contract modification unilaterally definitizing the action shall not take effect until 60 calendar days after the congressional defense committees have been notified under subparagraph (C) of such paragraph.”.

(b) Conforming 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 Supplement to the Federal Acquisition Regulations to conform with the amendments made by subsection (a).

SEC. 824. Restriction on use of reverse auctions and lowest price technically acceptable contracting methods for safety equipment.

(a) In general.—Section 814 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended—

(1) in the section heading, by inserting “and safety equipment” after “personal protective equipment”; and

(2) by inserting “and safety equipment” after “personal protective equipment”.

(b) Conforming amendments.—The tables of sections in section 2(b) of such Act and at the beginning of title VIII of such Act are amended in the item relating to section 814 by inserting “and safety equipment” after “personal protective equipment”.

SEC. 825. Use of lowest price technically acceptable source selection process.

(a) Additional requirements.—Subsection (b) of section 813 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended—

(1) in paragraph (5), by striking “; and” and inserting a semicolon;

(2) in paragraph (6), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following new paragraphs:

“(7) the Department of Defense would not realize any additional innovation or future technological advantage by using a different methodology; and

“(8) the items procured are predominantly expendable in nature, non-technical, or a short life expectancy or short shelf life.”.

(b) Reporting requirement.—Subsection (d) of such section is amended by striking “contract exceeding $10,000,000” and inserting “contract exceeding $5,000,000”.

SEC. 826. Middle tier of acquisition for rapid prototype and rapid fielding.

(a) Elimination of cost-sharing requirement.—Section 804(c)(2) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 note) is amended—

(1) by striking subparagraph (C); and

(2) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively.

(b) Use of simplified procedures.—Not later than 180 days after the date of the enactment of this Act, the Defense Acquisition Regulation Supplement shall be amended to provide for special simplified procedures for purchases of property and services under the rapid prototyping and rapid fielding programs established under section 804 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 note).

SEC. 827. Elimination of cost underruns as factor in calculation of penalties for cost overruns.

(a) In general.—Section 828 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2430 note) is amended—

(1) in subsection (a), by striking “fiscal year 2015” and inserting “fiscal years 2018, 2019, 2020, 2021, and 2022”;

(2) in subsection (b)—

(A) in paragraph (1), by striking “or underrun”;

(B) in paragraph (2), by striking “or underruns”;

(C) in paragraph (3)—

(i) by striking “and cost underruns”; and

(ii) by striking “or underruns”; and

(D) in paragraph (4), by striking “, except that the cost overrun penalty may not be a negative amount”; and

(3) in subsection (c), by striking “each fiscal year beginning with fiscal year 2015” and inserting “fiscal years 2018, 2019, 2020, 2021, and 2022”.

(b) Prior fiscal years.—The requirements of section 828 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2430 note), as in effect on the day before the date of the enactment of this Act, shall continue to apply with respect to fiscal years beginning on or before October 1, 2016.

SEC. 828. Contract closeout authority.

Section 836(b)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2286) is amended by striking “entered into prior to fiscal year 2000” and inserting “entered into at least 17 years before the current fiscal year”.

SEC. 829. Service contracts of the Department of Defense.

(a) Inclusion of certain information in future-years defense program.—Each future-years defense program submitted to Congress pursuant to section 221of title 10, United States Code, for a fiscal year after fiscal year 2018 shall include an estimate of the cost and number of service contracts of the Department of Defense for each fiscal year covered by the future-years defense program. The estimate shall be set forth for the Department of Defense as a whole and separately for each department, agency, organization, and element of the Department anticipated to use service contracts during the fiscal years covered by the future-years defense program concerned.

(b) Requirement for certification and briefing.—No study or competition regarding a public-private competition for the conversion to performance by a contractor for any function performed by Department of Defense civilian employees may be begun or announced pursuant to section 2461 of title 10, United States Code, or otherwise pursuant to Office of Management and Budget Circular A–76, until such time as—

(1) the future-years defense program submitted to Congress includes the information described in subsection (a); or

(2) the Secretary of Defense certifies that the Department has a plan to provide such information by the next fiscal year.

SEC. 830. Department of Defense contractor workplace safety and accountability.

(a) Identification of known workplace safety and health violations.—

(1) IN GENERAL.—A contracting officer, prior to awarding or renewing a covered contract, shall, as part of the responsibility determination, consider any identified violations of the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.) or equivalent State laws by the offeror, and by any covered subcontractors.

(2) RESPONSIBILITY DETERMINATION.—The contracting officer shall consider violations described in paragraph (1) in determining whether the offeror is a responsible source with a satisfactory record of performance that meets mission and ethical standards.

(3) REFERRAL OF INFORMATION TO SUSPENSION AND DEBARMENT OFFICIALS.—As appropriate, a contracting officer shall refer matters related to violations described in paragraph (1) to the Department of Defense's suspension and debarment official in accordance with Department procedures.

(b) Contractor rights.—The Secretary of Defense shall establish policies and practices—

(1) ensuring that when making responsibility determinations, contracting officers request that contractors provide any and all information the contractors deem necessary to demonstrate responsibility prior to final determinations;

(2) establishing mechanisms for contractors to have an expedited process to review any information used to support determinations of non-responsibility; and

(3) establishing mechanisms for contractors to have an expedited process to appeal determinations of non-responsibility.

(c) Protest rights.—The Secretary of Defense shall protect the rights of contractors to protest bids and appeal actions taken pursuant to this section.

(d) Training and guidance.—The Secretary of Defense shall develop and provide clear training and guidance to acquisition officials, contracting officers, and current and potential contractors regarding implementation policies and practices for this section.

(e) Comptroller General report.—

(1) IN GENERAL.—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 Department of Defense and the congressional defense committees a report on the health and safety records of Department of Defense contractors.

(2) ELEMENTS.—The report required under paragraph (1) shall include the following elements:

(A) A description of the Department of Defense's existing procedures to evaluate the safety and health records of current and prospective contractors.

(B) An evaluation of the Department's adherence to those procedures.

(C) An assessment of the current incidence of health and safety violations by Department contractors.

(D) An assessment of whether the Department of Labor has the resources to investigate and identify safety and health violations by Department of Defense contractors.

(E) An assessment of whether the Department of Labor should consider assuming an expanded investigatory role or a targeted enforcement program for ensuring the safety and health of workers under Department of Defense contracts.

(f) Definitions.—In this section:

(1) COVERED CONTRACT.—The term “covered contract” means a Department of Defense contract for the procurement of property or services, including construction, valued in excess of $1,000,000.

(2) COVERED SUBCONTRACTOR.—The term “covered subcontractor” means a subcontractor listed in the bid for a covered contract or known by the Department of Defense to be a subcontractor of the offeror.

SEC. 831. Department of Defense promotion of contractor compliance with existing law.

It is the sense of Congress that—

(1) the Department of Defense should aim to ensure that parties contracting with the Federal Government abide by existing law, including worker protection laws;

(2) worker protection laws, including chapter 43 of title 38, United States Code (commonly known as the “Uniformed Services Employment and Reemployment Rights Act of 1994” or “USERRA”) and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), were enacted to ensure equitable workplace practices;

(3) identifying and helping to improve the compliance of contractors with worker protection violations will help avoid setbacks and delays stemming from contracting with noncompliant contractors; and

(4) the Secretary of Defense has the authority to ensure contractors’ compliance with existing laws and should establish a goal to work with responsible contractors who are in compliance with worker protection laws.

subtitle CProvisions relating to major defense acquisition programs

SEC. 835. Revisions to definition of major defense acquisition program.

Section 2430(a) of title 10, United States Code, is amended—

(1) in paragraph (1)(B), by inserting “in the case of a program that is not a program for the acquisition of an automated information system (either a product or a service),” after “(B)”; and

(2) in paragraph (2)—

(A) by striking “does not include an acquisition program” and inserting the following: “does not include—

“(A) an acquisition program”; and

(B) by striking the period at the end and inserting the following: “; or

“(B) an acquisition program for a defense business system (as defined in section 2222(i)(1) of this title) carried out using the acquisition guidance issued pursuant to section 883(e) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2223a note).”.

SEC. 836. Prohibition on use of lowest price technically acceptable source selection process for major defense acquisition programs.

(a) Prohibition.—

(1) IN GENERAL.—Chapter 144 of title 10, United States Code, is amended by inserting after section 2441 the following new section:

§ 2442. Prohibition on use of lowest price technically acceptable source selection process

“(a) In general.—The Department of Defense shall not use a lowest price technically acceptable source selection process for the development contract of a major defense acquisition program.

“(b) Notification.— (1) The Secretary of Defense shall submit to the congressional defense committees a notification of the source selection process that the Department of Defense plans to use for the development contract of a major defense acquisition program.

“(2) The notification required under paragraph (1) shall be submitted at the same time that the President submits under section 1105 of title 31 the budget in which budget authority is requested for the development contract of a major defense acquisition program. If the Department of Defense has not yet determined the source selection process for the development contract at the time that budget authority for the development contract is requested, the Department of Defense shall submit the notification not later than 30 days before release of the request for proposals for the development contract.

“(c) Definitions.—In this section:

“(1) LOWEST PRICE TECHNICALLY ACCEPTABLE SOURCE SELECTION PROCESS.—The term ‘lowest price technically acceptable source selection process’ has the meaning given that term in part 15 of the Federal Acquisition Regulation.

“(2) MAJOR DEFENSE ACQUISITION PROGRAM.—The term ‘major defense acquisition program’ has the meaning given that term in section 2430 of this title.

“(3) DEVELOPMENT CONTRACT.—The term ‘development contract’ means a prime contract for the development of a major defense acquisition program.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2441 the following new item:


“2442. Prohibition on use of lowest price technically acceptable source selection process.”.

(b) Applicability.—The requirements of section 2442 of title 10, United States Code, as added by subsection (a), shall apply to major defense acquisition programs for which budgetary authority is requested for fiscal year 2019 or a subsequent fiscal year.

subtitle DProvisions related to acquisition workforce

SEC. 841. Training in commercial items procurement.

(a) Training.—Not later than one year after the date of the enactment of this Act, the President of the Defense Acquisition University shall establish a comprehensive training program on part 12 of the Federal Acquisition Regulation. The training shall cover, at a minimum, the following topics:

(1) The origin of part 12 and the congressional mandate to prefer commercial procurements.

(2) The definition of a commercial item, with a particular focus on the “of a type” concept.

(3) Price analysis and negotiations.

(4) Market research and analysis.

(5) Independent cost estimates.

(6) Parametric estimating methods.

(7) Value analysis.

(8) Best practices in pricing from commercial sector organizations, foreign government organizations, and other Federal, state, and local public sectors organizations.

(9) Other topics on commercial procurements necessary to ensure a well-educated acquisition workforce.

(b) Enrollments goals.—The President of the Defense Acquisition University shall set goals for student enrollment for the comprehensive training program established under subsection (a).

(c) Supporting activities.—The Secretary of Defense shall establish, in support of the achievement of the goals of this section—

(1) a university research program to engage academic experts on research topics of interest to improve commercial item identification and pricing methodologies; and

(2) a set of exchange and interface opportunities between government personnel experts to increase awareness of best practices and challenges in commercial item identification and pricing.

(d) Funding.—The Secretary of Defense shall use amounts available in the Department of Defense Acquisition Workforce Development Fund established under section 1705 of title 10, United States Code, to fund the comprehensive training program established under subsection (a).

SEC. 842. Modification of definition of acquisition workforce to include personnel engaged in the acquisition or development of cybersecurity systems.

Section 1705(h)(2)(A) of title 10, United States Code, is amended—

(1) by inserting “(i)” after “(A)”;

(2) by striking “; and” and inserting “; or”; and

(3) by adding at the end the following new clause:

    “(ii) are engaged in the acquisition or development of systems relating to cybersecurity; and”.

SEC. 843. Training and support for programs pursuing agile acquisition methods.

(a) In general.—Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the President of the Defense Acquisition University, shall establish an in-resident targeted training course at the Defense Acquisition University on Agile Acquisition.

(b) Course components.—The course shall include the following elements:

(1) Training designed to instill a common understanding of all functional roles and dependencies involved in developing and producing a capability using Agile processes.

(2) An exercise involving teams composed of personnel from pertinent functions and functional organizations engaged in developing an integrated Agile Acquisition approach for a specific program.

(c) Course attendance.—The course shall be—

(1) available for certified acquisition personnel from all program offices using Agile Acquisition methods; and

(2) mandatory for personnel from other relevant organizations in each of the military services and Defense Agencies, including organizations responsible for engineering, budgeting, contracting, test and evaluation, requirements validation, and certification and accreditation, that support those program offices.

(d) Agile Acquisition coach.—

(1) IN GENERAL.—The Secretary and the senior acquisition executives in each of the military services and Defense Agencies, in coordination with the Director of the Defense Digital Service, shall ensure that program offices pursuing Agile Acquisition methods have access to an Agile Acquisition coach.

(2) EXPERTISE.—The Agile Acquisition coach shall possess expertise in—

(A) commercial Agile Acquisition methods; and

(B) the acquisition system and processes of the Department of Defense.

(3) DUTIES.—The Agile Acquisition coach shall—

(A) assist program offices, supporting stakeholder organizations, and personnel in properly applying Agile Acquisition methods; and

(B) notify the appropriate acquisition authorities if programs are deviating from best practices or are not receiving appropriate support from stakeholder organizations, in a manner or to a degree that threatens the success of the program.

(e) Agile Acquisition research program.—The President of the Defense Acquisition University shall establish a research program to conduct research on and development of Agile Acquisition practices and tools best tailored to meet the mission needs of the Department of Defense.

(f) Definitions.—In this section the term “Agile Acquisition”—

(1) means acquisition pursuant to a methodology for delivering multiple, rapid, incremental capabilities to the user for operational use, evaluation, and feedback; and

(2) involves—

(A) the incremental development and fielding of capabilities, commonly called “spirals”, “spins”, or “sprints”, which can be measured in a few weeks or months; and

(B) continuous participation and collaboration by users, testers, and requirements authorities.

SEC. 844. Credits to Department of Defense Acquisition Workforce Development Fund.

Section 1705(d)(2)(D) of title 10, United States Code, is amended to read as follows:

“(D) The Secretary of Defense may adjust the amount specified in subparagraph (C) for a fiscal year if the Secretary determines that the amount is greater or less than reasonably needed for purposes of the Fund for such fiscal year. The Secretary may not adjust the amount for a fiscal year to an amount that is more than $600,000,000 or less than $400,000,000.”.

subtitle EProvisions related to commercial items

SEC. 851. Modification to definition of commercial items.

Section 2376 of title 10, United States Code, is amended—

(1) in paragraph (1), by striking “‘commercial item’,”; and

(2) by adding at the end the following new paragraph:

“(4) The term ‘commercial item’ has the meaning given the term in section 103 of title 41, except that it does not include an item referred to in paragraph (3)(B) of such section if, after the minor modifications made to meet Federal Government requirements referred to in such paragraph, the item includes a preponderance of government-unique functions or essential characteristics.”.

SEC. 852. Revision to definition of commercial item.

Section 103(8) of title 41, United States Code, is amended by striking “to multiple State and local governments” and inserting “to multiple State, local, or foreign governments”.

SEC. 853. Commercial item determinations.

Section 2380 of title 10, United States Code, is amended—

(1) by striking “The Secretary” and inserting “(a) In general.—The Secretary”; and

(2) by adding at the end the following new subsection:

“(b) Items previously acquired using commercial item acquisition procedures.—

“(1) DETERMINATIONS.—A contract or subcontract for an item using commercial item acquisition procedures under part 12 of the Federal Acquisition Regulation shall serve as a prior commercial item determination with respect to such item for purposes of this chapter unless the Secretary of Defense determines in writing that it is no longer cost-effective to procure the item using commercial item acquisition procedures.

“(2) LIMITATION.— (A) Except as provided under subparagraph (B), funds appropriated or otherwise made available to the Department of Defense may not be used for the procurement under part 15 of the Federal Acquisition Regulation of an item that was previously acquired using commercial item acquisition procedures under part 12 of the Federal Acquisition Regulation.

“(B) The limitation under subparagraph (A) does not apply to the procurement of an item that was previously acquired using commercial item acquisition procedures under part 12 of the Federal Acquisition Regulation following—

“(i) a written determination by the head of contracting activity pursuant to section 2306a(b)(4)(B) of this title that the use of such procedures was improper; or

“(ii) a written determination by the Secretary of Defense that it is no longer cost-effective to procure the item using such procedures.”.

SEC. 854. Preference for acquisition of commercial items.

Section 2377(b) of title 10, United States Code, is amended—

(1) by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively, and moving such subparagraphs, as so redesignated, two ems to the right;

(2) by striking “The head” and inserting “(1) The head”; and

(3) by adding at the end the following new paragraph:

“(2) The preference for the acquisition of commercial items and nondevelopmental items under this section shall take priority over any small business set-aside program, and shall require, to the maximum extent practicable, the acquisition of commercial items or nondevelopmental items other than commercial items in accordance with the terms of this section. If the requirements of an agency with respect to a procurement of supplies or services can be met with commercial items or nondevelopmental items other than commercial items provided by a small business concern, the small business concern may be awarded the contract in accordance with the requirements of a set-aside program.”.

SEC. 855. Inapplicable laws and regulations.

(a) Review of determinations not to exempt Department of Defense contracts for commercial items and commercially available off-the-shelf items from certain laws and regulations.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall—

(1) review each determination of the Federal Acquisition Regulatory Council pursuant to section 1906(b)(2), section 1906(c)(3), or section 1907(a)(2) of title 41, United States Code, not to exempt contracts and subcontracts described in subsection (a) of section 2375 of title 10, United States Code, from laws such contracts and subcontracts would otherwise be exempt from under section 1906(d) of title 41, United States Code; and

(2) revise the Department of Defense Supplement to the Federal Acquisition Regulation to provide an exemption from each law subject to such determination unless the Secretary determines there is a specific reason not to provide the exemption.

(b) Elimination of certain contract clause requirements applicable to commercial item contracts.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to eliminate all regulations promulgated after the date of the enactment of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) that require a specific contract clause for a contract using commercial item acquisition procedures under part 12 of the Federal Acquisition Regulation, except for regulations required by law or that the Secretary determines are vital to national security.

(c) Elimination of certain contract clause requirements applicable to commercially available off-the-shelf item subcontracts.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to eliminate all requirements for a prime contractor to include a specific contract clause in a subcontract for commercially available off-the-shelf items unless the inclusion of such clause is required by law or is necessary for the contractor to meet the requirements of the prime contract.

subtitle FIndustrial base matters

SEC. 861. Review regarding applicability of foreign ownership, control, or influence requirements of National Security Industrial Program to national technology and industrial base companies.

(a) Review.—The Secretary of Defense, with the concurrence of the Secretary of State, shall review whether companies whose ownership or majority control is based in countries that are part of the national technology and industrial base should be exempted from the foreign ownership, control, or influence (FOCI) requirements of the National Security Industrial Program.

(b) Authority.—

(1) IN GENERAL.—The Secretary of Defense may establish a program to carry out the exemption process described under subsection (a). Under the program, the Secretary, with the concurrence of the Secretary of State, shall maintain a list of companies owned or controlled by countries that are part of the national technology and industrial base that are eligible for exemption from the requirements described under such subsection.

(2) DETERMINATIONS OF ELIGIBILITY.—The Secretary of Defense, with the concurrence of the Secretary of State, may designate a company under paragraph (1) as exempt from the requirements described under subsection (a) upon a determination that such exemption—

(A) is beneficial to improving collaboration within countries participating in the national technology and industrial base;

(B) is in the United States national security interest; and

(C) will not result in a greater risk of the disclosure of classified or sensitive information consistent with the National Security Industrial Program.

(3) EXERCISE OF AUTHORITY.—The authority under paragraph (1) to exempt a listed company from the requirements described under subsection (a) may be exercised beginning on the date that is the later of—

(A) the date that is 60 days after the Secretary of Defense, in consultation with the Secretary of State, submits to the congressional defense committees a report summarizing the review conducted under such subsection; and

(B) the date that is 30 days after the Secretary of Defense, in consultation with the Secretary of State, submits to the congressional defense committees a written notification of a determination under paragraph (2) to exempt the company from such requirements, including a discussion of the issues related to the foreign ownership or control of the company that were considered as part of the determination.

(c) National technology and industrial base defined.—In this section, the term “national technology and industrial base” has the meaning given the term in section 2500 of title 10, United States Code.

SEC. 862. Pilot program on strengthening manufacturing in defense industrial base.

(a) Pilot program required.—The Secretary of Defense shall carry out a pilot program to assess the feasibility and advisability of increasing the capability of the defense industrial base to support—

(1) production needs to meet military requirements; and

(2) manufacturing and production of emerging defense and commercial technologies of military value.

(b) Authorities.—The Secretary shall carry out the pilot program under the following:

(1) The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.).

(2) Chapters 137 and 139 and sections 2371, 2371b, and 2373 of title 10, United States Code.

(3) Such other legal authorities as the Secretary considers applicable to carrying out the pilot program.

(c) Activities.—Activities under the pilot program may include the following:

(1) Use of contracts, grants, or other transaction authorities to support manufacturing and production capabilities in small and medium sized manufacturers.

(2) Purchases of quantities of goods or equipment for testing and qualification purposes.

(3) Purchase commitments to create incentives for industry to develop manufacturing and production capabilities of interest to national security, including cost sharing with funding from nongovernmental sources.

(4) Issuing loans directly to small and medium sized enterprises to support manufacturing and production capabilities.

(5) Guaranteeing loans to enable small and medium sized manufacturers to obtain private sector loans to support manufacturing and production capabilities in areas of national security interest.

(6) Giving awards to third party entities to support investments in small and medium sized manufacturers working in areas of national security interest, including activities to support debt and equity investments that would benefit missions of the Department of Defense.

(7) Such other activities as the Secretary determines necessary.

(d) Termination.—The pilot program shall terminate on the date that is five years after the date of the enactment of this Act.

SEC. 863. Sunset of certain provisions relating to the industrial base.

(a) Miscellaneous limitations on the procurement of goods other than United States goods.—Section 2534 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(k) Sunset on certain restrictions.—The restriction under subsection (a) relative to the procurement of the items set forth in paragraphs (1) through (4) of such subsection shall terminate on the close of September 30, 2018.”.

(b) Photovoltaic devices.—Section 858 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. 2534 note) is amended by adding at the end the following new subsection:

“(c) Sunset.—This section shall terminate on the close of September 30, 2018.”.

subtitle GInternational contracting matters

SEC. 865. Procurement exception relating to agreements with foreign governments.

Section 2533a of title 10, United States Code, is amended—

(1) in subsection (a), by striking “subsections (c) through (h)” and inserting “subsections (c) through (i)”;

(2) by redesignating subsections (i), (j), and (k) as subsections (j), (k), and (l), respectively; and

(3) by inserting after subsection (h) the following new subsection:

“(i) Exception relating to agreements with foreign governments.—Subsection (a) does not preclude the acquisition of items described in subsection (b) as part of a weapon system if the acquisition is necessary in furtherance of an agreement with a foreign government in which both governments agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country.”.

SEC. 866. Applicability of cost and pricing data certification requirements.

Section 2306a(b)(1) of title 10, United States Code, is amended—

(1) in subparagraph (C), by striking “; or” and inserting a semicolon;

(2) in subparagraph (D)(ii), by striking the period at the end and inserting “; or”; and

(3) by adding at the end the following new subparagraph:

    “(E) for a foreign military sale where there is already an existing Government contract—

    “(i) for the same or similar item or service; and

    “(ii) for which the Government has current cost and pricing data and insights into the reasonableness of price.”.

SEC. 867. Enhancing program licensing.

(a) In general.—Not later than September 30, 2019, the Secretary of Defense, with the concurrence of the Secretary of State, shall establish a structure for implementing a revised program export licensing framework intended to provide comprehensive export licensing authorization to support large international cooperative defense programs between multiple nations and determine what, if any, regulatory authorities require modification.

(b) Sustainment.—The licensing framework established under subsection (a) shall require a program license for the future sustainment of all international cooperative defense programs comprised of more than five nations. The program license shall be finalized prior to the sustainment phase of that program’s acquisition lifecycle.

subtitle HOther transactions

SEC. 871. Other transaction authority.

(a) Expanded authority for prototype projects.—Subsection (a) of section 2371b of title 10, United States Code, is amended—

(1) by striking “(1) Subject” and inserting “Subject”; and

(2) by striking paragraphs (2) and (3).

(b) Modification of cost sharing requirement for use of other transaction authority.—Subsection (d)(1) of such section is amended by striking subparagraph (C) and inserting the following new subparagraph:

“(C) At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government.”.

(c) Use of other transaction authority for ongoing prototype projects.—Subsection (f)(1) of such section is amended by adding at the end the following: “A transaction includes all individual prototype sub-projects awarded under the transaction to a consortium of United States industry and academic institutions.”.

SEC. 872. Education and training for transactions other than contracts and grants.

Section 2371 of title 10, United States Code, is amended—

(1) by redesignating subsection (g) as subsection (h); and

(2) by inserting after subsection (f) the following new subsection:

“(g) Education and training.—The Secretary of Defense shall ensure that management, technical, and contracting personnel of the Department involved in the award and administration of transactions under this section or other innovative forms of contracting are afforded adequate education and training.”.

SEC. 873. Preference for use of other transactions and experimental authority.

In the execution of science and technology and prototyping programs, the Secretary of Defense shall establish a preference for using transactions other than contracts, cooperative agreements, and grants entered into pursuant to sections 2371 and 2371b of title 10, United States Code, and authority for procurement for experimental purposes pursuant to section 2373 of title 10, United States Code.

SEC. 874. Methods for entering into research agreements.

Section 2358(b) of title 10, United States Code, is amended—

(1) in paragraph (3), by striking “or”;

(2) in paragraph (4), by striking the period at the end and inserting a semicolon; and

(3) by adding at the end the following new paragraphs:

“(5) by transactions other than contracts, cooperative agreements, and grants entered into pursuant to sections 2371 and 2371b of this title; or

“(6) by procurement for experimental purposes pursuant to section 2373 of this title.”.

subtitle IDevelopment and acquisition of software intensive and digital products and services

SEC. 881. Rights in technical data.

(a) Modification of definition of technical data.—Paragraph (4) of section 2302 of title 10, United States Code, is amended to read as follows:

“(4) The term ‘technical data’—

“(A) means recorded information (regardless of the form or method of the recording) of a scientific or technical nature relating to supplies procured by an agency;

“(B) with respect to software, includes everything required to reproduce, build/recompile, test, and deploy working system binaries on system hardware, including all source code, revision histories, build scripts, build/compilation/modification instructions/procedures, documentation, test cases, expected test results, compilers, interpreters, test harnesses, specialized build and test hardware, connectors, cables, and library dependencies; and

“(C) does not include computer software incidental to contract administration or financial, administrative, cost or pricing, or management data or other information incidental to contract administration.”.

(b) Rights in technical data.—Section 2320(a)(2) of title 10, United States Code, is amended by adding at the end the following new subparagraph:

“(J) The Secretary of Defense shall require the following with respect to software delivery:

“(i) Software shall be delivered in native electronic format.

“(ii) Builds must not be dependent upon pre-defined build directories.

“(iii) In the case of licensing restrictions that do not allow library dependency inclusion, verified accessible repositories and revision history shall be documented and included.

“(iv) Commercial Off-The Shelf/Non-Development Item (COTS/NDI) shall be delivered on original Licensed Media. If firmware is part of the delivery, then a Firmware Support Manual should be included as an Appendix.”.

SEC. 882. Defense Innovation Board analysis of software acquisition regulations.

(a) Study.—

(1) IN GENERAL.—Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall task the Defense Innovation Board to undertake a study on streamlining software development and acquisition regulations.

(2) MEMBER PARTICIPATION.—The Chairman of the Defense Innovation Board shall select appropriate members from the membership of the Board to participate in this study, and may recommend additional temporary members or contracted support personnel to the Secretary of Defense for the purposes of this study. In considering additional appointments to the study, the Secretary of Defense shall ensure that members have significant technical, legislative, or regulatory expertise and reflect diverse experiences in the public and private sector.

(3) SCOPE.—The study conducted pursuant to paragraph (1) shall—

(A) review the acquisition regulations applicable to the Department of Defense with a view toward streamlining and improving the efficiency and effectiveness of software acquisition in order to maintain defense technology advantage;

(B) produce specific and detailed recommendations for any legislation, including the amendment or repeal of regulations, that the members of the Board conducting the study determine necessary to—

(i) streamline development and procurement of software;

(ii) adopt best practices from the private sector applicable to government use;

(iii) promote rapid adoption of new technology;

(iv) ensure continuing financial and ethical integrity in procurement; and

(v) protect the best interests of the Department of Defense; and

(C) produce such additional recommendations for legislation as such members consider appropriate.

(4) CONSULTATION ON MAJOR PROGRAM REALIGNMENT.—The Secretary of Defense shall consult with the Defense Innovation Board in conducting activities under the major program realignment pilot program established pursuant to section 873. The Secretary shall provide the Board with timely access to all information necessary for the Board to provide such consultation and report on the major program realignment.

(5) ACCESS TO INFORMATION.—The Secretary of Defense shall provide the Defense Innovation Board with timely access to appropriate information, data, resources, and analysis so that the Board may conduct a thorough and independent analysis as required under this subsection.

(b) Reports.—

(1) INTERIM REPORTS.—Not later than 150 days after the date of the enactment of this Act, the Secretary of Defense shall submit a report to or brief the congressional defense committees on the interim findings of the study conducted pursuant to subsection (a). The Defense Innovation Board shall provide regular updates to the Secretary of Defense and the congressional defense committees for purposes of providing the interim report

(2) FINAL REPORT.—Not later than one year after the Secretary of Defense tasks the Defense Advisory Board to conduct the study, the Board shall transmit a final report of the study to the Secretary. Not later than 30 days after receiving the final report, the Secretary of Defense shall transmit the final report, together with such comments as the Secretary determines appropriate, to the congressional defense committees.

SEC. 883. Pilot to tailor software-intensive major programs to use agile methods.

(a) In general.—Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Secretaries and Chiefs of the military services, shall identify one major program per service and one defense-wide program for tailoring into smaller increments. The programs shall be selected from among those designated as major defense acquisition programs and those formerly designated as major automated information systems (excluding defense business systems).

(b) Program selection criteria.—In identifying candidate programs, the Secretary shall prioritize programs that—

(1) are software intensive;

(2) have identified software development as a risk;

(3) have experienced cost growth and schedule delay; and

(4) did not deliver any operational capability within the prior calendar year.

(c) Realignment plan.—The Secretary of Defense shall finalize a realignment plan within 60 days of programs being identified under subsection (a) that provides for the realigned program increments having a cost below the cost threshold for designation as a major acquisition.

(d) Realignment execution.—Each realigned program increment shall—

(1) be designed to deliver a meaningfully useful capability within the first 180 days following realignment;

(2) be designed to deliver subsequent meaningfully useful capabilities on timeframes of less than 180 days;

(3) incorporate cross-functional teams focused on software production that prioritize user needs and control of total cost of ownership;

(4) be staffed with highly qualified technically trained staff and personnel with management and business process expertise in leadership positions to support requirements modification, acquisition strategy, and program decisionmaking;

(5) ensure that realigned acquisition strategies are broad enough to allow offerors to propose a service, system, modified business practice, configuration of personnel, or combination thereof as a solution;

(6) include periodic engagement with the user community, as well as representation by the user community in program management and software production activity;

(7) ensure realigned acquisition strategies favor outcomes-based requirements definition and capability as a service, including the establishment of technical evaluation criteria as outcomes to be used to drive service-level agreements with vendors; and

(8) consider options for termination of the relationship with any vendor unable or unwilling to offer terms that meet the requirements of this section.

(e) Consultation.—In conducting the program selection and tailoring under this section, the Secretary shall—

(1) use the tools, resources, and expertise of digital and innovation organizations resident in the Department, such as the Defense Innovation Board, the Defense Innovation Unit Experimental, the Defense Science Board, the Defense Digital Services, federally funded research and development centers, research laboratories, and other technical, management, and acquisition experts;

(2) use the digital development and acquisition expertise of the General Services Administration’s Technology Transition Service, Office of 18F; and

(3) leverage the science, technology, and innovation activities established pursuant to section 217 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2445a note).

(f) Agile acquisition defined.—In this section, the term “agile acquisition”—

(1) means acquisition pursuant to a methodology for delivering multiple, rapid, incremental capabilities to the user for operational use, evaluation, and feedback; and

(2) involves—

(A) the incremental development and fielding of capabilities, commonly called “spirals”, “spins”, or “sprints”, which can be measured in a few weeks or months; and

(B) continuous participation and collaboration by users, testers, and requirements authorities.

SEC. 884. Review and realignment of defense business systems to emphasize agile methods.

(a) In general.—Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Chief Information Officers and Chief Management Officers of the military services, shall conduct a comprehensive assessment of investments in defense business systems and prioritize no fewer than four and up to eight such systems for realignment and restructuring into smaller increments and the incorporation of agile acquisition methods.

(b) Program assessment elements.—The assessment under subsection (a) shall include the following:

(1) A comparison of investments in business systems across the Department of Defense within each business system portfolio category, such as personnel and pay systems, accounting and financial systems, and contracting and procurement systems.

(2) Identification of opportunities to rationalize requirements across investments within a business system portfolio.

(3) Identification of programs within business system portfolio categories that are most closely following the best acquisition practices for software intensive systems.

(c) Program realignment selection criteria.—In identifying programs for potential realignment, the Secretary of Defense shall prioritize programs that—

(1) did not deliver any operational capability within the prior calendar year;

(2) have experienced cost growth and schedule delay; and

(3) have similar user requirements to a better performing program within the same business system portfolio category.

(d) Realignment plan.—The Secretary of Defense shall finalize a realignment plan within 60 days of programs being identified under subsection (c).

(e) Realignment execution.—Each realigned program increment shall—

(1) be designed to deliver a meaningfully useful capability within the first 180 days following realignment;

(2) be designed to deliver subsequent meaningfully useful capabilities on timeframes of less than 180 days;

(3) incorporate cross-functional teams focused on software production that prioritize user needs and control of total cost of ownership;

(4) be staffed with highly qualified technically trained staff and personnel with management and business process expertise in leadership positions to support requirements modification, acquisition strategy, and program decision making;

(5) ensure that realigned acquisition strategies are broad enough to allow offerors to propose a service, system, modified business practice, configuration of personnel, or combination thereof as a solution;

(6) include periodic engagement with the user community as well as representation by the user community in program management and software production activity;

(7) ensure realigned acquisition strategies favor outcomes-based requirements definition and capability as a service, including the establishment of technical evaluation criteria as outcomes to be used to drive service-level-agreements with vendors; and

(8) consider options for termination of the relationship with any vendor unable or unwilling to offer terms that meet the requirements of this section.

(f) Consultation.—In conducting the program selection and realignments under this section, the Secretary shall—

(1) use the tools, resources, and expertise of digital and innovation organizations resident in the Department, such as the Defense Innovation Board, the Defense Innovation Unit Experimental, the Defense Science Board, the Defense Business Board, the Defense Digital Services, federally funded research and development centers, research laboratories, and other technical, management, and acquisition experts;

(2) use the digital development and acquisition expertise of the General Services Administration’s Technology Transition Service, Office of 18F; and

(3) leverage the science, technology, and innovation activities established pursuant to section 217 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2445a note).

(g) Agile acquisition defined.—In this section, the term “agile acquisition”—

(1) means acquisition pursuant to a methodology for delivering multiple, rapid, incremental capabilities to the user for operational use, evaluation, and feedback; and

(2) involves—

(A) the incremental development and fielding of capabilities, commonly called “spirals”, “spins”, or “sprints”, which can be measured in a few weeks or months; and

(B) continuous participation and collaboration by users, testers, and requirements authorities.

SEC. 885. Software development pilot using agile best practices.

(a) In general.—Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall identify no fewer than four and up to eight software development activities within the Department of Defense or military departments to be developed using modern agile acquisition methods.

(b) Streamlined processes.—Software development activities identified under subsection (a) shall be developed without incorporation of the following contract or transaction requirements:

(1) Earned Value Management (EVM) or EVM-like reporting.

(2) Development of Integrated Master Schedule.

(3) Development of Integrated Master Plan.

(4) Development of Technical Requirement Document.

(5) Development of Systems Requirement Documents.

(6) Use of Information Technology Infrastructure Library agreements.

(7) Use of Software Development Life Cycle (methodology).

(c) Roles and responsibilities.—

(1) IN GENERAL.—Selected activities shall include the following roles and responsibilities:

(A) A program manager that is empowered to make all programmatic decisions within the overarching activity objectives, including resources, funding, personnel, and contract or transaction termination recommendations.

(B) A product owner that reports directly to the program manager and is responsible for the overall design of the product, prioritization of roadmap elements and interpretation of their acceptance criteria, and prioritization of the list of all features desired in the product.

(C) An engineering lead that reports directly to the program manager and is responsible for the implementation and operation of the software.

(D) A design lead that reports directly to the program manager and is responsible for identifying, communicating, and visualizing user needs through a human centered design process.

(2) QUALIFICATIONS.—The Secretary shall establish qualifications for personnel filling these positions prior to their selection. The qualifications may not include a positive education requirement and must be based on technical expertise or experience in delivery of software products, to include agile concepts.

(3) COORDINATION PLAN FOR TESTING AND CERTIFICATION ORGANIZATIONS.—The program manager shall ensure resources for test and certification organizations support of iterative development processes.

(d) Plan.—The Secretary of Defense or designee shall develop a plan for each selected activity under the pilot to include the following elements:

(1) Definition of a product vision, identifying a succinct, clearly defined need the software will address.

(2) Definition of a product road map, outlining a noncontractual plan that identifies short-term and long-term product goals and specific technology solutions to help meet those goals and adjusts to mission and user needs at the product owner’s discretion.

(3) The use of a Broad Agency Announcement, Other Transaction Authority, or other rapid merit-based solicitation procedure.

(4) Identification of, and continuous engagement with, end users.

(5) Frequent and iterative end user validation of features and usability consistent with the principles outlined in the Digital Services Playbook.

(6) Use of commercial best practices for advanced computing systems, including, where applicable—

(A) Automated Testing, Integration, and Deployment;

(B) compliance with applicable commercial accessibility standards;

(C) capability to support modern versions of multiple, common web browsers;

(D) capability to be viewable across commonly used end user devices, including mobile devices; and

(E) built-in application monitoring.

(e) Program schedule.—The Secretary shall ensure that each selected activity includes—

(1) award processes that take no longer than 3 months after a requirement is identified;

(2) planned frequent and iterative end user validation of implemented features and their usability;

(3) delivery of a functional prototype or minimally viable product in 3 months or less from award; and

(4) follow-on delivery of iterative development cycles no longer than 4 weeks apart, including security testing and configuration management as applicable.

(f) Oversight metrics.—The Secretary shall ensure that the selected activities—

(1) use a modern tracking tool to execute requirements backlog tracking; and

(2) use agile development metrics that, at a minimum, track—

(A) pace of work accomplishment;

(B) completeness of scope of testing activities (such as code coverage, fault tolerance, and boundary testing);

(C) product quality attributes (such as major and minor defects and measures of key performance attributes and quality attributes);

(D) delivery progress relative to the current product roadmap; and

(E) goals for each iteration.

(g) Data rights.—

(1) UNCLASSIFIED SOFTWARE.—

(A) DEPARTMENT OF DEFENSE RIGHTS.—The Department of Defense shall obtain sufficient data rights for unclassified software so that all custom computer software developed under the pilot activities are managed as open source software.

(B) PUBLIC AVAILABILITY.—The contractor shall publicly develop and release the source code for unclassified custom software in a public repository with a license through which the copyright holder provides the rights to use, study, reuse, modify, enhance, and distribute the software to anyone and for any purpose.

(2) OTHER SOFTWARE.—For all other custom software delivered under the pilot activities, the Department of Defense shall obtain sufficient data rights to enable a third party, other than the pilot contractor, to continue development and maintenance activities throughout the program lifecycle.

(h) Restrictions.—

(1) USE OF FUNDS.—No funds made available for the selected activities may be expended on estimation or evaluation using source lines of code methodologies.

(2) CONTRACT TYPES.—The Secretary of Defense may not use lowest price technically acceptable contracting methods or cost plus contracts to carry out selected activities under this section, and shall encourage the use of existing streamlined and flexible contracting arrangements.

(i) Consultation.—In executing the software development activities under subsection (a), the Secretary shall—

(1) use the tools, resources, and expertise of digital and innovation organizations resident in the Department, such as the Defense Innovation Board, the Defense Innovation Unit Experimental, the Defense Science Board, the Defense Business Board, the Defense Digital Services, federally funded research and development centers, research laboratories, and other technical, management, and acquisition experts; and

(2) use, as appropriate, the digital development and acquisition expertise of the General Services Administration.

(j) Reports.—

(1) SOFTWARE DEVELOPMENT ACTIVITY COMMENCEMENT.—

(A) IN GENERAL.—Not later than 30 days before the commencement of a software development activity under subsection (a), the Secretary shall submit to the congressional defense committees a report on the pilot activity.

(B) ELEMENTS.—The report on a pilot activity under this paragraph shall set forth a description of the pilot activity, including the following information:

(i) The purpose of the pilot activity.

(ii) The duration of the pilot activity.

(iii) The efficiencies and benefits anticipated to accrue to the Government under the pilot program.

(2) SOFTWARE DEVELOPMENT ACTIVITY COMPLETION.—

(A) IN GENERAL.—Not later than 60 days after the completion of a pilot activity, the Secretary shall submit to the congressional defense committees a report on the pilot activity.

(B) ELEMENTS.—The report on a pilot activity under this paragraph shall include the following elements:

(i) A description of results of the pilot activity.

(ii) Such recommendations for legislative or administrative action as the Secretary considers appropriate in light of the pilot activity.

(k) Agile acquisition defined.—In this section, the term “agile acquisition”—

(1) means acquisition pursuant to a methodology for delivering multiple, rapid, incremental capabilities to the user for operational use, evaluation, and feedback; and

(2) involves—

(A) the incremental development and fielding of capabilities, commonly called “spirals”, “spins”, or “sprints”, which can be measured in a few weeks or months; and

(B) continuous participation and collaboration by users, testers, and requirements authorities.

SEC. 886. Use of open source software.

(a) Open source software.—

(1) IN GENERAL.—Chapter 137 of title 10, United States Code, is amended by inserting after section 2320 the following new section:

§ 2320a. Use of open source software

“(a) Software development.—All unclassified custom-developed computer software and related technical data that is not a defense article regulated pursuant to section 38 of the Arms Export Control Act (22 U.S.C. 2778) and that is developed under a contract or other transaction awarded by the Department of Defense on or after the date that is 180 days after the date of the enactment of this section shall be managed as open source software unless specifically waived by the service acquisition executive.

“(b) Release of software in public repository.—The Secretary of Defense shall require the contractor to release source code and related technical data described under subsection (a) in a public repository approved by the Department of Defense, subject to a license through which the copyright holder provides the rights to use, study, reuse, modify, enhance, and distribute the software to anyone and for any purpose.

“(c) Applicability to existing software.—The Secretary of Defense shall, where appropriate—

“(1) apply open source licenses to existing custom-developed computer software; and

“(2) release related source code and technical data in a public repository location approved by the Department of Defense.

“(d) Definitions.—In this section:

“(1) CUSTOM-DEVELOPED COMPUTER SOFTWARE.—The term ‘custom-developed computer software’ means human-readable source code, including segregable portions thereof, that is first produced in the performance of a Department of Defense contract or other transaction, or is otherwise fully funded by the Federal Government.

“(2) TECHNICAL DATA.—The term ‘technical data’ has the meaning given the term in section 2302 of this title.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding after the item relating to section 2320 the following new item:


“2320a. Use of open source software.”.

(b) Prize competition.—The Secretary of Defense shall create a prize for a research and develop program or other activity for identifying, capturing, and storing existing Department of Defense custom-developed computer software and related technical data. The Secretary of Defense shall create an additional prize for improving, repurposing, or reusing software to better support the Department of Defense mission. The prize programs shall be conducted in accordance with section 2374a of title 10, United States Code.

(c) Reverse engineering.—The Secretary of Defense shall task the Defense Advanced Research Program Agency with a project to identify methods to locate and reverse engineer Department of Defense custom-developed computer software and related technical data for which source code is unavailable.

(d) Definitions.—In this section:

(1) CUSTOM-DEVELOPED COMPUTER SOFTWARE.—The term “custom-developed computer software” means human-readable source code, including segregable portions thereof, that is first produced in the performance of a Department of Defense contract or other transaction, or is otherwise fully funded by the Federal Government.

(2) TECHNICAL DATA.—The term “technical data” has the meaning given the term in section 2302 of title 10, United States Code.

(e) Regulations.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall amend the Defense Federal Acquisition Regulation Supplement to carry out this section and the amendments made by this section.

subtitle JOther matters

SEC. 891. Improved transparency and oversight over Department of Defense research, development, test, and evaluation efforts and procurement activities related to medical research.

The Secretary of Defense may not enter into a contract, grant, or cooperative agreement for congressional special interest medical research programs under the congressionally directed medical research program of the Department of Defense unless the contract, grant, or cooperative agreement meets the following conditions:

(1) Compliance with the cost and price data requirements under section 2306a of title 10, United States Code.

(2) Compliance with the cost accounting standards under section 1502 of title 41, United States Code.

(3) Compliance with requirements for full and open competition under section 2304 of title 10, United States Code, without reliance on one of the exceptions set forth in subsection (c) of such section.

SEC. 892. Rights in technical data related to medical research.

The Secretary of Defense may not enter into a contract, grant, or cooperative agreement for congressional special interest medical research programs under the congressionally directed medical research program of the Department of Defense unless the contract, grant, or cooperative agreement provides that the United States Government will have the same rights to the technical data to an item or process developed under the contract, grant, or cooperative agreement as applicable under section 2320(a)(2)(A) of title 10, United States Code, to items and processes developed exclusively with Federal funds where the medical research results in medicines and other treatments that will be procured or otherwise paid for by the Federal Government through the Department of Defense, the Department of Veterans Affairs, Medicare, Medicaid, or other Federal Government health programs.

SEC. 893. Oversight, audit, and certification from the Defense Contract Audit Agency for procurement activities related to medical research.

The Secretary of Defense may not enter into a contract, grant, or cooperative agreement for congressional special interest medical research programs under the congressionally directed medical research program of the Department of Defense unless the contract, grant, or cooperative agreement meets the following conditions:

(1) Prior to obligation of any funds, review by and certification from the Defense Contract Audit Agency regarding the adequacy of the accounting systems of the proposed awardee, including a forward pricing review of the awardee's proposal.

(2) Prior to any payment on the contract, grant, or cooperative agreement, performance by the Defense Contract Audit Agency of an incurred cost audit.

SEC. 894. Requirements for Defense Contract Audit Agency report.

Subparagraph (E) of section 2313a(a)(2) of title 10, United States Code, is amended to read as follows:

“(E) the total number and dollar value of audits that are pending for a period longer than 18 months as of the end of the fiscal year covered by the report, including a breakdown by type of audit;”.

SEC. 895. Prototype projects to digitize defense acquisition regulations, policies, and guidance, and empower user tailoring of acquisition process.

(a) In general.—The Secretary of Defense, acting through the Under Secretary of Defense for Research and Engineering, shall conduct development efforts to develop prototypes to digitize defense acquisition regulations, policies, and guidance and to develop a digital decision support tool that facilitates the ability of users to tailor programs in accordance with existing laws, regulations, and guidance.

(b) Elements.—Under the prototype projects, the Secretary shall—

(1) convert existing acquisition policies, guides, memos, templates, and reports to an online, interactive digital format to create a dynamic, integrated, and authoritative knowledge environment for purposes of assisting program managers and the acquisition workforce of the Department of Defense to navigate the complex lifecycle for each major type of acquisition program or activity of the Department;

(2) as part of this digital environment, create a digital decision support capability that uses decision trees and tailored acquisition models to assist users to develop strategies and facilitate coordination and approvals; and

(3) as part of this environment, establish a foundational data layer to enable advanced data analytics on the acquisition enterprise of the Department, to include business process reengineering to improve productivity.

(c) Use of prototypes in acquisition activities.—The Under Secretary of Defense for Research and Engineering shall encourage the use of these prototypes to model, develop, and test any procedures, policies, instructions, or other forms of direction and guidance that may be required to support acquisition training, practices, and policies of the Department of Defense.

(d) Funding.—The Secretary may use the authority under section 1705(e)(4)(B) of title 10, United States Code, to develop acquisition support prototypes and tools under this program.

SEC. 896. Pilot program for adoption of acquisition strategy for Defense Base Act insurance.

(a) In general.—The Secretary of Defense shall establish a pilot program for the United States Army Corps of Engineers (USACE) for purposes of adopting an acquisition strategy for insurance required by the Defense Base Act (42 U.S.C. 1651 et seq.) in order to minimize the cost of such insurance to the Department of Defense.

(b) Criteria.—The pilot program acquisition strategy developed pursuant to subsection (a) shall address the following criteria:

(1) Minimize overhead costs associated with obtaining insurance required by the Defense Base Act, such as direct or indirect costs for contract management and contract administration.

(2) Minimize costs for coverage of such insurance consistent with realistic assumptions regarding the likelihood of incurred claims by contractors of the Department and USACE.

(3) Provide for a correlation of premiums paid in relation to claims incurred that is modeled on best practices in government and industry for similar kinds of insurance.

(4) Provide for a competitive marketplace for insurance required by the Defense Base Act to the maximum extent practicable.

(c) Single contract.—

(1) IN GENERAL.—In adopting the pilot program acquisition strategy pursuant to subsection (a), the Secretary shall enter into a single Defense Base Act insurance contract for USACE for contracts involving performance in all theaters, and potentially including combat operations.

(2) SCOPE.—The contract shall extend to all categories of insurance coverage, including construction, aviation, security, and services contracts.

(3) TERM.—The contract entered into under this subsection shall be in effect for at least 3 years, or as considered appropriate by the Secretary.

(d) Report.—

(1) IN GENERAL.—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 pilot program and the acquisition strategy adopted pursuant to subsection (a).

(2) ELEMENTS.—The report required under paragraph (1) shall include—

(A) a discussion of each of the options considered and the extent to which each option addresses the criteria identified under subsection (b); and

(B) a plan to implement within 18 months after the date of enactment of this Act the acquisition strategy adopted by the Secretary.

(e) Review and renewal of pilot program and acquisition strategy.—The Secretary shall review the pilot program and may renew the program, provided that the objectives have been reached.

SEC. 897. Phase III awards.

Section 9(r)(4) of the Small Business Act (15 U.S.C. 638(r)(4)) is amended by striking “shall issue Phase III awards” and inserting the following: “shall—

“(A) consider an award under the SBIR program or the STTR program to satisfy the requirements under section 2304 of title 10, United States Code, and any other applicable competition requirements; and

“(B) issue, without further justification, Phase III awards”.

SEC. 898. Pilot program for streamlined technology transition from the SBIR and STTR programs of the Department of Defense.

(a) Definitions.—In this section—

(1) the terms “commercialization”, “Federal agency”, “Phase I”, “Phase II”, “Phase III”, “SBIR”, and “STTR” have the meanings given those terms in section 9(e) of the Small Business Act (15 U.S.C. 638(e));

(2) the term “covered small business concern” means—

(A) a small business concern that completed a Phase II award under the SBIR or STTR program of the Department; or

(B) a small business concern that—

(i) completed a Phase I award under the SBIR or STTR program of the Department; and

(ii) a contracting officer for the Department recommends for inclusion in a multiple award contract described in subsection (b);

(3) the term “Department” means the Department of Defense;

(4) the term “multiple award contract” has the meaning given the term in section 3302(a) of title 41, United States Code;

(5) the term “pilot program” means the pilot program established under subsection (b); and

(6) the term “small business concern” has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).

(b) Establishment.—Not later than 180 days after the date of enactment of this Act, the Secretary of Defense shall establish a pilot program under which the Department shall award multiple award contracts to covered small business concerns for the purchase of technologies, supplies, or services that the covered small business concern has developed through the SBIR or STTR program.

(c) Waiver of Competition in Contracting Act requirements.—The Secretary of Defense may establish procedures to waive provisions of section 2304 of title 10, United States Code, for purposes of carrying out the pilot program.

(d) Use of contract vehicle.—A multiple award contract described in subsection (b) may be used by any service or component of the Department.

(e) Termination.—The pilot program established under this section shall terminate on September 30, 2023.

(f) Rule of construction.—Nothing in this section shall be construed to prevent the commercialization of products and services produced by a small business concern under an SBIR or STTR program of a Federal agency through—

(1) direct awards for Phase III of an SBIR or STTR program; or

(2) any other contract vehicle.

SEC. 899. Annual report on limitation of subcontractor intellectual property rights.

Not later than 180 days after the date of the enactment of this Act, and annually thereafter for five years, the Secretary of Defense shall submit to the congressional defense committees a report listing all contracts entered into during the previous fiscal year using procedures under part 15 of the Federal Acquisition Regulation where the prime contractor limited the intellectual property rights of one or more subcontractors without being required to do so by the United States Government.

SEC. 899A. Extension from 20 to 30 years of maximum total period for Department of Defense contracts for storage, handling, or distribution of liquid fuels and natural gas.

(a) Extension.—Section 2922(b) of title 10, United States Code, is amended by striking “a total of 20 years” and inserting “a total of 30 years”.

(b) Effective date.—The amendment made by subsection (a) shall take effect on October 1, 2027, and shall apply with respect to contracts entered into on or after such date.

SEC. 899B. Exception for Department of Defense contracts from requirement that business operations conducted under government contracts accept and dispense $1 coins.

Section 5112(p)(1) of title 31, United States Code, is amended by inserting “, with the exception of business operations conducted by any entity under a contract with the Department of Defense,” before “shall take such action”.

SEC. 899C. Investing in rural small businesses.

(a) Flexibility for residency in HUBZones.—Section 3(p)(5)(A)(i)(I) of the Small Business Act (15 U.S.C. 632(p)(5)(A)(i)(I)) is amended by striking “35 percent” each place that term appears and inserting “33 percent”.

(b) Enabling local communities to maximize economic potential.—The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1) in section 3(p)(1) (15 U.S.C. 632(p)(1))—

(A) in subparagraph (E), by striking “or” at the end;

(B) by redesignating subparagraph (F) as subparagraph (G); and

(C) by inserting after subparagraph (E) the following:

“(F) another qualified area designated by the Administrator under section 31(d); or”; and

(2) in section 31 (15 U.S.C. 657a)—

(A) by redesignating subsection (d) as subsection (e); and

(B) by inserting after subsection (c) the following:

“(d) Other qualified areas.—

“(1) DEFINITIONS.—In this subsection—

“(A) the term ‘covered area’ means an area in a State—

“(i) that is located outside of an urbanized area, as determined by the Bureau of the Census; and

“(ii) with a population of not more than 50,000;

“(B) the term ‘governor’ means the chief executive of a State; and

“(C) the term ‘State’ means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.

“(2) DESIGNATION.—A governor may petition the Administrator to designate one or more covered areas as a HUBZone if the average unemployment rate of each covered area is not less than 120 percent of the average unemployment rate of the United States or of the State in which the covered area is located, whichever is less, based on the most recent data available from the American Community Survey conducted by the Bureau of the Census.

“(3) CRITERIA.—In reviewing a petition submitted by a governor under paragraph (2), the Administrator may consider—

“(A) the potential for job creation and investment;

“(B) the demonstrated interest of small business concerns in the covered area to participate in the HUBZone program established under section 31; and

“(C) the consideration by State and local government officials of a HUBZone as part of an economic development strategy.

“(4) PETITION.—With respect to a petition submitted by a governor to the Administrator under paragraph (2)—

“(A) the governor may submit not more than 1 petition in a fiscal year unless the Administrator determines that an additional petition from the State of the governor is appropriate;

“(B) the governor may not submit a petition for more than 10 percent of the total number of covered areas in the State of the governor; and

“(C) if the Administrator grants the petition and designates one or more covered areas as a HUBZone, the governor shall, not less frequently than annually, submit data to the Administrator certifying that each covered area continues to meet the requirements of clauses (i) and (ii) of paragraph (1)(A).

“(5) PROCESS.—The Administrator shall establish procedures—

“(A) to ensure that the Administration accepts petitions under paragraph (2) from all States each fiscal year; and

“(B) to provide technical assistance, before the filing of a petition under paragraph (2), to a governor who is interested in filing such a petition.”.

(c) Ensuring timely consideration of HUBZone applications.—Section 3(p)(5) of the Small Business Act (15 U.S.C. 632(p)(5)) is amended by adding at the end the following:

“(C) REVIEW OF APPLICATIONS.—Not later than 60 days after the date on which the Administrator receives an application from a small business concern to be certified as a qualified HUBZone small business concern under subparagraph (A)(i), the Administrator shall approve or deny the application.”.

TITLE IXDepartment of Defense Organization and Management

subtitle AOffice of the Secretary of Defense and Related Matters

SEC. 901. Chief Management Officer of the Department of Defense.

(a) Chief Management Officer.—

(1) IN GENERAL.—Effective February 1, 2018, section 132a of title 10, United States Code, is amended to read as follows:

§ 132a. Chief Management Officer

“(a) Appointment.—There is a Chief Management Officer of the Department of Defense, appointed from civilian life by the President, by and with the advice and consent of the Senate. The Chief Management Officer shall be appointed from among persons who have an extensive management or business background and experience with managing large or complex organizations. A person may not be appointed as Chief Management Officer within seven years after relief from active duty as a commissioned officer of a regular component of an armed force.

“(b) Responsibilities.—Subject to the authority, direction, and control of the Secretary of Defense, the Chief Management Officer shall perform such duties and exercise such powers as the Secretary may prescribe, including—

“(1) serving as the chief management officer of the Department of Defense with the mission of managing the business operations of the Department;

“(2) serving as the principal advisor to the Secretary on establishing policies for, and directing, all business operations of the Department, including business transformation, business planning and processes, performance management, and business information technology management and improvement activities and programs, including the allocation of resources for business operations and unifying business management efforts across the Department;

“(3) exercising authority, direction, and control over the Defense Agencies and Department of Defense Field Activities providing shared business services for the Department that are designated by the Secretary for purposes of this paragraph;

“(4) as of January 1, 2019—

“(A) serving as the Chief Information Officer of the Department for purposes of section 2222 of this title;

“(B) administering the responsibilities and duties specified in sections 11315 and 11319 of title 40, section 3506(a)(2) of title 44, and section 2223(a) of this title for business systems and management; and

“(C) any responsibilities, duties, and powers relating to business systems or management that are exercisable by a chief information officer for the Department, other than those responsibilities, duties, and powers of a chief information officer that are vested in the Chief Information Warfare Officer by section 142 of this title;

“(5) serving as the official with principal responsibility in the Department for providing for the availability of common, usable, Defense-wide data sets with applications such as improving acquisition outcomes and personnel management; and

“(6) the authority to direct the Secretaries of the military departments and the heads of all other elements of the Department with regard to matters for which the Chief Management Officer has responsibility under this section.

“(c) Precedence.—The Chief Management Officer takes precedence in the Department of Defense after the Secretary of Defense and the Deputy Secretary of Defense.”.

(2) CLERICAL AMENDMENT.—Effective February 1, 2018, the table of sections at the beginning of chapter 4 of such title is amended by striking the item relating to section 132a and inserting the following new item:


“132a. Chief Management Officer.”.

(b) Conforming repeal of prior authorities on CMO.—

(1) IN GENERAL.—Effective on January 31, 2018, subsection (c) of section 901 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2341; 10 U.S.C. 131 note) is repealed, and the amendments to be made by paragraph (4) of that subsection shall not be made.

(2) FURTHER CONFORMING AMENDMENTS.—Effective on February 1, 2018, section 132 of title 10, United States Code, is amended—

(A) by striking subsection (c); and

(B) by redesignating subsection (d) as subsection (c).

(c) Conforming amendments on precedence in DoD.—Effective on February 1, 2018, and immediately after the coming into effect of the amendments made by section 901 of the National Defense Authorization Act for Fiscal Year 2017—

(1) section 131(b) of title 10, United States Code, is amended—

(A) by redesignating paragraphs (2) through (9) as paragraphs (3) through (10), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

“(2) The Chief Management Officer of the Department of Defense.”;

(2) section 133a(c) of such title is amended—

(A) in paragraph (1), by striking “and the Deputy Secretary of Defense” and inserting “, the Deputy Secretary of Defense, and the Chief Management Officer of the Department of Defense”; and

(B) in paragraph (2), by inserting “the Chief Management Officer,” after “the Deputy Secretary,”; and

(3) section 133b(c) of such title is amended—

(A) in paragraph (1), by inserting “the Chief Management Officer of the Department of Defense,” after “the Deputy Secretary of Defense,”; and

(B) in paragraph (2), by inserting “the Chief Management Officer,” after “the Deputy Secretary,”.

(d) Executive Schedule Level II.—Effective on February 1, 2018, and immediately after the coming into effect of the amendment made by section 901(h) of the National Defense Authorization Act for Fiscal Year 2017, section 5313 of title 5, United States Code, is amended by inserting before the item relating to the Under Secretary of Defense for Research and Engineering the following new item:

“ Chief Management Officer of the Department of Defense.”.

(e) Service of incumbent Deputy Chief Management Officer as Chief Management Officer upon commencement of latter position without further appointment.—The individual serving in the position of Deputy Chief Management Officer of the Department of Defense as of February 1, 2018, may continue to serve as Chief Management Officer of the Department of Defense under section 132a of title 10, United States Code (as amended by subsection (a)), commencing as of that date without further appointment pursuant to such section 132a.

(f) Report on Defense Agencies and Field Activities providing shared business services.—Not later than January 15, 2018, the Secretary of Defense shall submit to the congressional defense committees a report specifying each Defense Agency and Department of Defense Field Activity providing shared business services for the Department of Defense that is to be designated by the Secretary for purposes of subsection (b)(3) of section 132a of title 10, United States Code (as so amended), as of the coming into effect of such section 132a

(g) Notice to Congress on transfer of oversight of Defense Agencies and Field Activities with business-support functions to CMO.—Upon the transfer of responsibility for oversight of a Defense Agency or Department of Defense Field Activity specified in subsection (c) of section 132a of title 10, United States Code (as so amended), to the Chief Management Officer of the Department of Defense, the Secretary of Defense shall submit to the congressional defense committees a notice on the transfer, including the Defense Agency or Field Activity subject to the transfer and a description of the nature and scope of the responsibility for oversight transferred.

SEC. 902. Realignment of responsibilities, duties, and powers of Chief Information Officer of the Department of Defense.

(a) In general.—Effective on January 1, 2019, the responsibilities, duties, and powers vested in the Chief Information Officer of the Department of Defense as of December 31, 2018, are realigned as follows:

(1) There is vested in the Chief Information Warfare Officer of the Department of Defense the responsibilities, duties, and powers provided for by section 142 of title 10, United States Code (as amended by subsection (b)).

(2) There is vested in the Chief Management Officer of the Department of Defense any responsibilities, duties, and powers vested in the Chief Information Officer of the Department of Defense as of December 31, 2018, that are not vested in the Chief Information Warfare Officer by paragraph (1) and such section 142.

(b) Chief Information Warfare Officer.—

(1) IN GENERAL.—Section 142 of title 10, United States Code, is amended to read as follows:

§ 142. Chief Information Warfare Officer

“(a) In general.— (1) There is a Chief Information Warfare Officer of the Department of Defense, who shall be appointed from among civilians who are qualified to serve as the Chief Information Warfare Officer by the President, by and with the advice and consent of the Senate.

“(2) The Chief Information Warfare Officer shall report directly to the Secretary of Defense in the performance of duties under this section.

“(b) Responsibility and authority.— (1) Subject to the authority, direction, and control of the Secretary of Defense, the Chief Information Warfare Officer is responsible for all matters relating to the information environment of the Department of Defense and has the authority to establish policy for, and direct the Secretaries of the military departments and the heads of all other elements of the Department relating to, the matters as follow:

“(A) Space and space launch systems.

“(B) Communications networks and information technology (other than business systems).

“(C) National security systems.

“(D) Information assurance and cybersecurity.

“(E) Electronic warfare and cyber warfare.

“(F) Nuclear command and control and senior leadership communications systems.

“(G) Command and control systems and networks.

“(H) The electromagnetic spectrum.

“(I) Positioning, navigation, and timing.

“(J) Any other matters assigned to the Chief Information Officer of the Department of Defense, not relating to business systems or management, in sections 2223 and 2224 of this title, sections 11315 and 11319 of title 40, and sections 3506 and 3544 of title 44.

“(2) In addition to the responsibilities in paragraph (1), the responsibilities of the Chief Information Warfare Officer include—

“(A) exercising authority, direction, and control over the missions, programs, and organizational elements pertaining to information assurance (formally Information Assurance Directorate) of the National Security Agency;

“(B) exercising authority, direction, and control over the Defense Information Systems Agency, or any successor organization, for the matters described in paragraph (1); and

“(C) responsibilities for policy, oversight, guidance, and coordination for all Department matters relating to the electromagnetic spectrum, including—

“(i) coordination with other Federal agencies and the private sector;

“(ii) coordination for classified programs; and

“(iii) in coordination with the Under Secretary for Personnel and Health, the spectrum management workforce.

“(3) Notwithstanding the exemptions for the Department of Defense in section 11319 of title 40, the authority of the Chief Information Warfare Officer to direct the secretaries of the military departments for information warfare matters as provided in paragraph (1) shall include—

“(A) playing a significant and directive role in the decision processes for all annual and multi-year planning, programming, budgeting, and execution decisions, including the authority to realign the elements of the budgets and budget requests of the military departments that pertain to the responsibilities of the Chief Information Warfare Officer;

“(B) reviewing and approving any funding request or reprogramming request;

“(C) ensuring that the military departments comply with Government and Department standards on a matter described in paragraph (1) or (2);

“(D) reviewing and approving the appointment of any other employee who functions in the capacity of a Chief Information Officer or a Chief Information Warfare Officer for any component within the Department, except for the Chief Management Officer of the Department of Defense; and

“(E) participating in all meetings, management, and decision-making forums on issues pertaining to any matter described in paragraph (1) or (2).

“(4) The Chief Information Warfare Officer shall oversee and may require that programs of the military departments comply with such direction and standards as the Chief Information Warfare Officer may establish relating to a matter described in paragraph (1) or (2).

“(5) The Chief Information Warfare Officer shall perform such additional duties and exercise such additional powers as the Secretary may prescribe.

“(c) Chief Information Officer for certain purposes.—The Chief Information Warfare Officer—

“(1) is the Chief Information Officer of the Department of Defense for purposes of 3554(a)(3) of title 44 and section 2224 of this title; and

“(2) in coordination with the Chief Management Officer of the Department of Defense, is the Chief Information Officer of the Department of Defense for purposes of section 11315 of title 40 and section 2223 of this title.

“(d) Principal Cyber Advisor.—In addition to any other duties under this section, the Chief Information Warfare Officer shall serve as Principal Cyber Advisor under section 932(c) of the National Defense Authorization Act for Fiscal Year 2014 (10 U.S.C. 2224 note).

“(e) Principal Department of Defense Space Advisor.—In addition to any other duties under this section, the Chief Information Warfare Officer shall perform the duties of the Principal Department of Defense Space Advisor in accordance with Department of Defense Directive 5100.96 and any succeeding directive.

“(f) Collaborative mechanisms.— (1) The Secretary of Defense shall establish collaboration mechanisms between the Chief Information Warfare Officer and the Under Secretary of Defense for Intelligence, the Under Secretary of Defense for Policy, the Chairman of the Joint Chiefs of Staff, and the Assistant Secretary of Defense for Public Affairs for purposes of developing and overseeing the execution of offensive and defensive information warfare strategies, plans, programs, and operations.

“(2) The strategies, plans, programs and operations shall appropriately integrate cyber, electronic, and electromagnetic spectrum warfare, military deception, military information support operations, and public affairs to conduct, counter, and deter information warfare

“(g) Precedence in DoD.— (1) The Chief Information Warfare Officer shall take precedence in the Department of Defense with the officials serving in positions specified in section 131(b)(2) of this title.

“(2) The officials serving in positions specified in such section and the Chief Information Warfare Officer take precedence among themselves in the order prescribed by the Secretary.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 4 of such title is amended by striking the item relating to section 142 and inserting the following new item:


“142. Chief Information Warfare Officer.”.

(3) EXECUTIVE SCHEDULE LEVEL II.—Section 5313 of title 5, United States Code, is amended by inserting after the item relating to the Deputy Secretary of Defense the following new item:

“ Chief Information Warfare Officer of the Department of Defense.”.

(4) REFERENCES.—Any reference to the Chief Information Officer of the Department of Defense in any law, regulation, map, document, record, or other paper of the United States in that official's capacity as the official responsible for the information security and information dominance of the Department of Defense shall be deemed to be a reference to Chief Information Warfare Officer of the Department of Defense.

(5) PRINCIPAL CYBER ADVISOR.—Paragraph (1) of section 932(c) of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 829; 10 U.S.C. 2224 note) is amended to read as follows:

“(1) IN GENERAL.—The Chief Information Warfare Officer of the Department of Defense under section 142 of title 10, United States Code, shall serve as the Principal Cyber Advisor to act as the principal advisor to the Secretary on military cyber forces and activities.”.

(6) STANDARDS FOR NETWORKS.—A military department may not develop or procure a network that does not fully comply with such standards as the Chief Information Warfare Officer under section 142 of title 10, United States Code (as amended by paragraph (1)), may establish relating to a matter described in subsection (b) of such section.

(7) ALTERNATIVE PROPOSAL.—Not later than March 1, 2018, the Secretary of Defense shall submit to the congressional defense committees a proposal for such alternatives or modifications to the realignment of responsibilities required by section 142 of title 10, United States Code (as so amended), as the Secretary considers appropriate, together with an implementation plan for such proposal. The proposal may not be carried out unless approved by statute.

(8) QUARTERLY BRIEFING ON IMPLEMENTATION.—Not later than January 30, 2018, and every 90 days thereafter through January 1, 2019, the Secretary shall provide to the congressional defense committees a briefing on the status of the implementation of the Chief Information Warfare Officer of the Department of Defense under section 142 of title 10, United States Code (as so amended), during the preceding 90 days.

(9) EFFECTIVE DATE.—

(A) IN GENERAL.—Except as provided in subparagraph (B), this subsection and the amendments made by this subsection shall take effect on January 1, 2019.

(B) INTERIM MATTERS.—Paragraphs (7) and (8) of this subsection shall take effect on the date of the enactment of this Act.

SEC. 903. Clarification of authority of Under Secretary of Defense for Acquisition and Sustainment with respect to service acquisition programs for which the service acquisition executive is the milestone decision authority.

Effective on February 1, 2018, and immediately after the coming into effect of the amendment made by section 901(b) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), subsection (b)(6) of section 133b of title 10, United States Code, as added by such section 901(b), is amended by striking “supervisory authority” and inserting “advisory authority”.

SEC. 904. Executive Schedule matters relating to Under Secretary of Defense for Acquisition and Sustainment.

(a) Inapplicability of pending amendment.—The amendment to be made by section 901(h) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2342) with regard to the Under Secretary of Defense for Acquisition and Sustainment shall not be made.

(b) Executive Schedule Level III.—Effective on February 1, 2018, section 5314 of title 5, United States Code, is amended by inserting before the item relating to the Under Secretary of Defense for Policy the following:

“ Under Secretary of Defense for Acquisition and Sustainment.”.

SEC. 905. Technical amendment.

Section 901(a) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2339; 10 U.S.C. 133a note) is amended—

(1) by striking “Research and Engineering.—” and all that follows through “Effective on February 1, 2018” and inserting “Research and Engineering.—Effective on February 1, 2018”; and

(2) by striking paragraph (2).

SEC. 906. Redesignation of Under Secretary of Defense for Personnel and Readiness as Under Secretary of Defense for Personnel and Health.

(a) Redesignation.—

(1) IN GENERAL.—Section 136 of title 10, United States Code, is amended by striking “and Readiness” each place it appears and inserting “and Health”.

(2) HEADING AMENDMENT.—The heading of such section is amended to read as follows:

§ 136. Under Secretary of Defense for Personnel and Health”.

(3) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 4 of such title is amended by striking the item relating to section 136 and inserting the following new item:


“136. Under Secretary of Defense for Personnel and Health.”.

(b) Conforming amendments.—

(1) TITLE 10.—

(A) Subparagraph (D) of section 131(b)(2) of title 10, United States Code, is amended to read as follows:

“(D) The Under Secretary of Defense for Personnel and Health.”.

(B) Section 137(c) of such title is amended by striking “and Readiness” and inserting “and Health”.

(2) EXECUTIVE SCHEDULE LEVEL III.—Section 5314 of title 5, United States Code, is amended by striking the item relating to the Under Secretary of Defense for Personnel and Readiness and inserting the following new item:

“Under Secretary of Defense for Personnel and Health.”.

(c) References.—Any reference to the Under Secretary of Defense for Personnel and Readiness in any law, regulation, map, document, record, or other paper of the United States shall be deemed to be a reference to the Under Secretary of Defense for Personnel and Health.

SEC. 907. Qualifications for appointment and additional duties and powers of certain officials within the Office of the Under Secretary of Defense (Comptroller).

(a) Under Secretary of Defense (Comptroller).—

(1) QUALIFICATION FOR APPOINTMENT.—Subsection (a) of section 135 of title 10, United States Code, is amended—

(A) by inserting “(1)” after “(a)”; and

(B) by adding at the end the following new paragraph:

“(2) (A) Any individual appointed as Under Secretary of Defense (Comptroller) shall be an individual who—

“(i) has significant financial management service in—

“(I) a Federal or State agency that received an audit with an unqualified opinion on such agency’s financial statements during the time of such individual’s service; or

“(II) a public company that received an audit with an unqualified opinion on such company’s financial statements during the time of such individual’s service; or

“(ii) has served as chief financial officer, deputy chief financial officer, or an equivalent executive-level position with direct authority for financial management in a large public or private sector organization.

“(B) In this paragraph, the term ‘public company’ has the meaning given the term ‘issuer’ in section 2(7) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).”.

(2) DUTIES AND POWERS.—Such section is further amended—

(A) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and

(B) by inserting after subsection (c) the following new subsection (d):

“(d) In addition to any duties under subsection (c), the Under Secretary of Defense (Comptroller) shall, subject to the authority, direction, and control of the Secretary of Defense, do the following:

“(1) Provide guidance and instruction on annual performance plans and evaluations to the following:

“(A) The Assistant Secretaries of the military departments for financial management.

“(B) Any other official of an agency, organization, or element of the Department of Defense with responsibility for financial management.

“(2) Give directions to the military departments, Defense Agencies, and other organizations and elements of the Department of Defense regarding their financial statements and the audit and audit readiness of such financial statements.”.

(b) Deputy Chief Financial Officer.—

(1) QUALIFICATION FOR APPOINTMENT.—Any individual appointed as Deputy Chief Financial Officer of the Department of Defense shall be an individual who—

(A) has significant financial management service in—

(i) a Federal or State agency that received an audit with an unqualified opinion on such agency’s financial statements during the time of such individual’s service; or

(ii) a public company that received an audit with an unqualified opinion on such company’s financial statements during the time of such individual’s service; or

(B) has served as chief financial officer, deputy chief financial officer, or an equivalent executive-level position with direct authority for financial management in a large public or private sector organization.

(2) PUBLIC COMPANY DEFINED.—In this subsection, the term “public company” has the meaning given the term “issuer” in section 2(7) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).

(c) Applicability.—This section and the amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to appointments that are made on or after that date.

SEC. 908. Five-year period of relief from active duty as a commissioned officer of a regular component of the Armed Forces for appointment to Under Secretary of Defense positions.

(a) Under Secretary of Defense for Research and Engineering.—Effective on February 1, 2018, and immediately after the coming into effect of the amendments made by subsection (a) of the National Defense Authorization Act for Fiscal Year 2017 (130 Stat. 2339), section 133a(a) of title 10, United States Code (as added by such subsection (a)), is amended by striking “seven years” and inserting “five years”.

(b) Under Secretary of Defense for Acquisition and Sustainment.—Effective on February 1, 2018, and immediately after the coming into effect of the amendments made by subsection (b) of the National Defense Authorization Act for Fiscal Year 2017 (130 Stat. 2340), section 133b(a) of title 10, United States Code (as added by such subsection (b)), is amended by striking “seven years” and inserting “five years”.

(c) Under Secretary of Defense for Policy.—Section 134(a) of title 10, United States Code, is amended by striking “seven years” and inserting “five years”.

(d) Under Secretary of Defense (Comptroller).—Section 135(a) of such title is amended by adding at the end the following new sentence: “A person may not be appointed as Under Secretary within five years after relief from active duty as a commissioned officer of a regular component of the armed forces.”.

(e) Under Secretary of Defense for Personnel and Health.—Subsection (a) of section 136 of such title, as amended by section 906(a) of this Act, is further amended by adding at the end the following new sentence: “A person may not be appointed as Under Secretary within five years after relief from active duty as a commissioned officer of a regular component of the armed forces.”.

(f) Under Secretary of Defense for Intelligence.—Section 137(a) of such title is amended by adding at the end the following new sentence: “A person may not be appointed as Under Secretary within five years after relief from active duty as a commissioned officer of a regular component of the armed forces.”.

SEC. 909. Redesignation of Principal Deputy Under Secretaries of Defense as Deputy Under Secretaries of Defense and related matters.

(a) Redesignation.—Section 137a of title 10, United States Code, is amended by striking “Principal” each place it appears.

(b) Increase in authorized number.—Subsection (a)(1) of such section is amended by striking “five” and inserting “six”.

(c) Replacement of ATL position with two positions in connection with OSD reform.—Subsection (c) of such section is amended—

(1) by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively; and

(2) by striking paragraph (1) and inserting the following new paragraphs:

“(1) One of the Deputy Under Secretaries is the Deputy Under Secretary of Defense for Research and Engineering.

“(2) One of the Deputy Under Secretaries is the Deputy Under Secretary of Defense for Acquisition and Sustainment.”.

(d) Redesignation of DUSD for Personnel and Readiness as DUSD for Personnel and Health.—Paragraph (4) of subsection (c) of such section, as amended and redesignated by this section, is further amended by striking “Personnel and Readiness” and inserting “Personnel and Health”.

(e) Conforming amendments.—

(1) OSD.—Paragraph (6) of section 131(b) of title 10, United States Code, is amended to read as follows:

“(6) The Deputy Under Secretaries of Defense.”.

(2) PRECEDENCE.—Section 138(d) of such title is amended by striking “Principal”.

(f) Executive schedule level IV.—

(1) IN GENERAL.—Section 5315 of title 5, United States Code, is amended—

(A) by striking “Principal” in the items relating to the Principal Deputy Under Secretary of Defense for Policy, the Principal Deputy Under Secretary of Defense (Comptroller), and the Principal Deputy Under Secretary of Defense for Intelligence; and

(B) by striking the item relating to the Principal Deputy Under Secretary of Defense for Personnel and Readiness and inserting the following new item:

“ Deputy Under Secretary of Defense for Personnel and Health.”.

(2) OSD REFORM.—Section 5315 of such title is further amended by inserting before the item relating to the Deputy Under Secretary of Defense for Policy, as amended by paragraph (1)(A), the following new items:

“ Deputy Under Secretary of Defense for Research and Engineering.

“ Deputy Under Secretary of Defense for Acquisition and Sustainment.”.

(g) Clerical amendments.—

(1) HEADING AMENDMENT.—The heading of section 137a of such title is amended to read as follows:

§ 137a. Deputy Under Secretaries of Defense”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 4 of such title is amended by striking the item relating to section 137a and inserting the following new item:


“137a. Deputy Under Secretaries of Defense.”.

(h) Effective dates.—

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act.

(2) ATL POSITION AMENDMENTS.—The amendments made by subsections (b), (c), and (f)(2) of this section shall take effect on February 1, 2018, immediately after the coming into effect of the amendments made by subsections (a) and (b) of section 901 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2339), to which the amendments made by subsections (b), (c), and (f)(2) of this section relate.

SEC. 910. Reduction of number and elimination of specific designations of Assistant Secretaries of Defense.

(a) Reduction of authorized number.—Subsection (a)(1) of section 138 of title 10, United States Code, is amended by striking “14” and inserting “13”.

(b) Elimination of certain specific designations.—Subsection (b) of such section is amended—

(1) by striking paragraphs (2), (3), and (5); and

(2) by redesignating paragraphs (4) and (6) as paragraphs (2) and (3), respectively.

SEC. 911. Limitation on maximum number of Deputy Assistant Secretaries of Defense.

The maximum number of Deputy Assistant Secretaries of Defense after the date of the enactment of this Act may not exceed 46.

SEC. 912. Modification of definition of OSD personnel for purposes of limitation on number of Office of Secretary of Defense personnel.

(a) Modification.—

(1) IN GENERAL.—Section 143(b) of title 10, United States Code, as amended by section 903(a) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328), is further amended by striking “and detailed personnel” and inserting “detailed, and contractor personnel”.

(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall take effect on October 1, 2018.

(b) Report on number of contractor personnel in OSD and each secretariate of the military departments.—Not later than December 31, 2017, the Secretary of Defense shall submit to the congressional defense committees a report specifying the following:

(1) The number of contractor personnel in the Office of the Secretary of Defense as of October, 1, 2017.

(2) The number of contractor personnel in each office of a Secretary of a military department as of October 1, 2017.

subtitle BOrganization of Other Department of Defense Offices and Elements

SEC. 921. Reduction in authorized number of Assistant Secretaries of the military departments.

(a) Assistant Secretaries of the Army.—Section 3016(a) of title 10, United States Code, is amended by striking “five” and inserting “four”.

(b) Assistant Secretaries of the Navy.—Section 5016(a) of such title is amended by striking “four” and inserting “three”.

(c) Assistant Secretaries of the Air Force.—Section 8016(a) of such title is amended by striking “four” and inserting “three”.

SEC. 922. Qualifications for appointment of Assistant Secretaries of the military departments for financial management.

(a) Assistant Secretary of the Army.—Section 3016(b)(4) of title 10, United States Code, is amended—

(1) by inserting “(A)” after “(4)”;

(2) by striking “The Assistant Secretary shall have as his principal responsibility” and inserting the following:

“(C) The principal responsibility of the Assistant Secretary shall be”; and

(3) by inserting after subparagraph (A), as designated by paragraph (1), the following new subparagraph (B):

“(B) (i) Any individual appointed as Assistant Secretary shall be an individual who—

“(I) has significant financial management service in—

“(aa) a Federal or State agency that received an audit with an unqualified opinion on such agency’s financial statements during the time of such individual’s service; or

“(bb) a public company that received an audit with an unqualified opinion on such company’s financial statements during the time of such individual’s service; or

“(II) has served as chief financial officer, deputy chief financial officer, or an equivalent executive-level position with direct authority for financial management in a large public or private sector organization.

“(ii) In this subparagraph, the term ‘public company’ has the meaning given the term ‘issuer’ in section 2(7) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).”.

(b) Assistant Secretary of the Navy.—Section 5016(b)(3) of such title is amended—

(1) by inserting “(A)” after “(3)”;

(2) by striking “The Assistant Secretary shall have as his principal responsibility” and inserting the following:

“(C) The principal responsibility of the Assistant Secretary shall be”; and

(3) by inserting after subparagraph (A), as designated by paragraph (1), the following new subparagraph (B):

“(B) (i) Any individual appointed as Assistant Secretary shall be an individual who—

“(I) has significant financial management service in—

“(aa) a Federal or State agency that received an audit with an unqualified opinion on such agency’s financial statements during the time of such individual’s service; or

“(bb) a public company that received an audit with an unqualified opinion on such company’s financial statements during the time of such individual’s service; or

“(II) has served as chief financial officer, deputy chief financial officer, or an equivalent executive-level position with direct authority for financial management in a large public or private sector organization.

“(ii) In this subparagraph, the term ‘public company’ has the meaning given the term ‘issuer’ in section 2(7) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).”.

(c) Assistant Secretary of the Air Force.—Section 8016(b)(3) of such title is amended—

(1) by inserting “(A)” after “(3)”;

(2) by striking “The Assistant Secretary shall have as his principal responsibility” and inserting the following:

“(C) The principal responsibility of the Assistant Secretary shall be”; and

(3) by inserting after subparagraph (A), as designated by paragraph (1), the following new subparagraph (B):

“(B) (i) Any individual appointed as Assistant Secretary shall be an individual who—

“(I) has significant financial management service in—

“(aa) a Federal or State agency that received an audit with an unqualified opinion on such agency’s financial statements during the time of such individual’s service; or

“(bb) a public company that received an audit with an unqualified opinion on such company’s financial statements during the time of such individual’s service; or

“(II) has served as chief financial officer, deputy chief financial officer, or an equivalent executive-level position with direct authority for financial management in a large public or private sector organization.

“(ii) In this subparagraph, the term ‘public company’ has the meaning given the term ‘issuer’ in section 2(7) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(7)).”.

(d) Applicability.—The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to appointments that are made on or after that date.

subtitle COrganization and Management of the Department of Defense Generally

SEC. 931. Reduction in limitation on number of Department of Defense SES positions.

Section 1109(a)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328) is amended by striking “1,260” and inserting “1,140”.

SEC. 932. Manner of carrying out reductions in major Department of Defense headquarters activities.

Section 346(b) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 796; 10 U.S.C. 111 note) is amended by adding at the end the following new paragraph:

“(5) MANNER OF CARRYING OUT REDUCTIONS.—Reductions in major Department of Defense headquarters activities pursuant to the headquarters reduction plan referred to in paragraph (1), as modified pursuant to that paragraph, shall be carried out after a consideration of the current manpower levels, historic manpower levels, mission requirements, and anticipated staffing needs of such headquarters activities necessary to meet national defense objectives. Further, the plan required by subsection (a) shall be modified to take into account the requirement in the preceding sentence.”.

SEC. 933. Certifications on cost savings achieved by reductions in major Department of Defense headquarters activities.

Section 346(b) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 796 10 U.S.C. 111 note), as amended by section 932 of this Act, is further amended by adding at the end the following new paragraph:

“(6) CERTIFICATIONS ON COST SAVINGS ACHIEVED.—Not later than 60 days after close of each of fiscal years 2017 through 2020, the Director of Cost Assessment and Program Evaluation shall certify to the Secretary of Defense, and to the congressional defense committees, the following:

“(A) The validity of the cost savings achieved for each major Department of Defense headquarters activity during the fiscal year concerned.

“(B) Whether the cost savings achieved for each major Department of Defense headquarters activity during the fiscal year concerned met the savings objective for such activity for such fiscal year, as established pursuant to paragraph (1).”.

SEC. 934. Direct hire authority for the Department of Defense for personnel to assist in business transformation and management innovation.

(a) Authority.—The Secretary of Defense may appoint in the Department of Defense individuals described in subsection (b) without regard to the provisions of subchapter I of chapter 33 of title 5, United States Code, for the purpose of assisting and facilitating the efforts of the Department in business transformation and management innovation.

(b) Covered individuals.—The individuals described in this subsection are individuals who have all of the following:

(1) A management or business background.

(2) Experience working with large or complex organizations.

(3) Expertise in management and organizational change, data analytics, or business process design.

(c) Limitation on number.—The number of individuals appointed pursuant to this section at any one time may not exceed 25 individuals.

(d) Nature of appointment.—Any appointment under this section shall be on a term basis. The term of any such appointment shall be specified by the Secretary at the time of the appointment.

SEC. 935. Data analytics capability for support of enhanced oversight and management of the Defense Agencies and Department of Defense Field Activities.

(a) Data analytics capability required.—

(1) IN GENERAL.—By not later than September 30, 2020, the Deputy Chief Management Officer of the Department of Defense shall establish and maintain within the Department of Defense a data analytics capability for purposes of supporting enhanced oversight and management of the Defense Agencies and Department of Defense Field Activities.

(2) DISCHARGE THROUGH SUCCESSOR POSITION.—If the position of Deputy Chief Management Officer of the Department of Defense is succeeded by another position in the Department, the duties of the Deputy Chief Management Officer under this section shall be discharged by the occupant of such succeeding position.

(b) Elements.—The data analytics capability shall permit the following:

(1) The maintenance on a continuing basis of an accurate tabulation of the amounts being expended by the Defense Agencies and Department of Defense Field Activities on their personnel.

(2) The maintenance on a continuing basis of an accurate number of the personnel currently supporting the Defense Agencies and Field Activities, including the following:

(A) Members of the regular components of the Armed Forces.

(B) Members of the reserve components of the Armed Forces.

(C) Civilian employees of the Department of Defense.

(D) Employees of contractors of the Department, including federally funded research and development centers.

(E) Detailees, whether from another organization or element of the Department or from another department or agency of the Federal Government.

(3) The maintenance of a continuing basis of the following:

(A) An identification of the functions being performed by each Defense Agency and Field Activity.

(B) An accurate tabulation of the amounts being expended by each Defense Agency and Field Activity on its functions.

(4) The streamlined assembly and analysis of data for purposes of the capability, including through appropriate automated processes.

(c) Resources.—In establishing the data analytics capability, the Deputy Chief Management Officer may use the following:

(1) Data and information from each of the Defense Agencies and Department of Defense Field Activities.

(2) Data and information from the Defense Manpower Data Center (DMDC).

(3) Subject to the direction and control of the Secretary of Defense, any other resources of the Department the Deputy Chief Management Officer considers appropriate.

(d) Reports.—

(1) INTERIM REPORT.—Not later than one year after the date of the enactment of this Act, the Deputy Chief Management Officer shall submit to the congressional defense committees a report on the progress of the Deputy Chief Management Officer in establishing the data analytics capability. The report shall include the following:

(A) A description and assessment of the efforts of the Deputy Chief Management Officer through the date of the report to establish the data analytics capability.

(B) A description of current gaps in the data required to establish the data analytics capability, and a description of the efforts to be undertaken to eliminate such gaps.

(C) Any other matters in connection with the establishment of the data analytics capability that the Deputy Chief Management Officer considers appropriate.

(2) FINAL REPORT.—Not later than December 31, 2020, the Deputy Chief Management Officer shall submit to the congressional defense committees a report on the data analytics capability as established pursuant to this section. The report shall include the following:

(A) A description and assessment of the data analytics capability.

(B) Any other matters in connection with the data analytics capability that the Deputy Chief Management Officer considers appropriate.

SEC. 936. Enhanced use of data analytics to improve acquisition program outcomes.

(a) In general.—Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall, acting jointly through the Deputy Chief Management Officer and the Chief Information Officer of the Department of Defense, and in coordination with the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Armed Forces, establish a set of activities that use data analysis, measurement, and other evaluation-related methods to improve the acquisition outcomes of the Department of Defense and enhance organizational learning.

(b) Activities.—

(1) IN GENERAL.—The set of activities established under subsection (a) may include the following:

(A) Establishment of data analytics capabilities and organizations within the appropriate military service.

(B) Development of capabilities in Department of Defense laboratories, test centers, and Federally funded research and development centers to provide technical support for data analytics activities that support acquisition program management and business process re-engineering activities.

(C) Increased use of existing analytical capabilities available to acquisition programs and offices to support improved acquisition outcomes.

(D) Funding of intramural and extramural research and development activities to develop and implement data analytics capabilities in support of improved acquisition outcomes.

(E) Publication, to the maximum extent practicable, and in a manner that protects classified and proprietary information, of data collected by the Department related to acquisition program costs and activities for access and analyses by the general public.

(F) Clarification by the Chief of Staff of the Army, the Chief of Naval Operations, the Chief of Staff of the Air Force, and the Commandant of the Marine Corps, in coordination with the Under Secretary of Defense for Acquisition, Technology, and Logistics, of a consistent policy as to the role of data analytics in establishing budgets and making milestone decisions for major defense acquisition programs.

(G) Continual assessment, in consultation with the private sector, of the efficiency of current data collection and analyses processes, so as to minimize the requirement for collection and delivery of data by, from, and to government organizations.

(H) Promulgation of guidance to acquisition programs and activities on the efficient use and sharing of data between programs and organizations to improve acquisition program analytics and outcomes.

(I) Promulgation of guidance on assessing and enhancing quality of data and data analyses to support improved acquisition outcomes.

(2) GAP ANALYSIS OF CURRENT ACTIVITIES.—The Secretary shall, in coordination with the Armed Forces, identify the current activities, organizations, and groups of personnel that are pursuing tasks similar to those described in paragraph (1) that are being carried out as of the date of the enactment of this Act. The Secretary shall consider such current activities, organizations, and personnel in determining the set of activities to establish pursuant to subsection (a).

(3) TRAINING AND EDUCATION.—The Secretary shall, acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics, conduct a review of the curriculum taught at the National Defense University, the Defense Acquisition University, and appropriate private sector academic institutions to determine the extent to which the curricula include appropriate courses on data analytics and other evaluation-related methods and their application to defense acquisitions.

(c) Discharge of certain duties.—After January 31, 2018—

(1) any duties under this section to be discharged by the Deputy Chief Management Officer of the Department of Defense shall be discharged by the Chief Management Officer of the Department of Defense; and

(2) any duties under this section to be discharged by the Under Secretary of Defense for Acquisition, Technology, and Logistics shall be discharged by the Under Secretary of Defense for Acquisition and Sustainment.

SEC. 937. Pilot programs on data integration strategies for the Department of Defense.

(a) Pilot programs required.—The Secretary of Defense shall, acting through the Chief Management Officer of the Department of Defense, carry out pilot programs to develop data integration strategies for the Department of Defense to address high-priority challenges of the Department.

(b) Scope of pilot programs.—The pilot programs required by subsection (a) shall involve data integration strategies to address challenges of the Department with respect to the following:

(1) The budget of the Department.

(2) Logistics.

(3) Personnel security and insider threats.

(4) At least two other high-priority challenges of the Department identified by the Secretary for purposes of this section.

(c) Elements.—In developing a data integration strategy to address a challenge of the Department for purposes of a pilot program under this section, the Secretary shall do the following:

(1) Identify the elements of the Department, and the officials of such elements, to be involved in carrying out the data integration strategy.

(2) Specify the elements of the data integration strategy.

(3) Specify the policies of the Department, if any, to be modified or waived in order to facilitate the carrying out of the data integration strategy by enabling timely and continuous sharing of information needed to solve the challenge concerned.

(d) Report.—

(1) IN GENERAL.—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 pilot programs to be carried out under this section.

(2) ELEMENTS.—The report shall include the following:

(A) A description of each pilot program, including the challenge of the Department to be addressed by such pilot program and the manner in which the data integration strategy under such pilot program will address the challenge.

(B) If the carrying out of any pilot program requires legislative action for the waiver or modification of a statutory requirement that prevents or impedes the carrying out of the pilot program, a recommendation for legislative action to waive or modify such statutory requirement.

SEC. 938. Background and security investigations for Department of Defense personnel.

(a) Transition to discharge by Defense Security Service.—

(1) IN GENERAL.—The Secretary of Defense has the authority to conduct security, suitability, and credentialing background investigations. In carrying out such authority, the Secretary may use such authority, or may delegate such authority to another entity. As part of providing for the conduct of background investigations initiated by the Department of Defense through the Defense Security Service by not later than the deadline specified in subsection (b), the Secretary shall, in consultation with the Director of the Office of Personnel Management, provide for a phased transition from the conduct of such investigations by the National Background Investigations Bureau (NBIB) of the Office of Personnel Management to the conduct of such investigations by the Defense Security Service by that deadline.

(2) PHASED TRANSITION.—The phased transition required by paragraph (1) shall—

(A) provide for the transition of the conduct of investigations to the Defense Security Service using a risk management approach; and

(B) be consistent with the transition from legacy information technology operated by the Office of Personnel Management to the new information technology, including the National Background Investigations System, as described in subsection (f).

(b) Commencement of implementation plan for ongoing discharge of investigations through DSS.—Not later than October 1, 2020, the Secretary of Defense shall commence carrying out the implementation plan developed pursuant to section 951(a)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2371).

(c) Transfer of certain functions within DoD to DSS.—

(1) IN GENERAL.—For purposes of meeting the requirements in subsections (a) and (b), the Secretary of Defense shall transfer the functions, personnel, and associated resources of the organizations specified in paragraph (2) to the Defense Security Service.

(2) ORGANIZATIONS.—The organizations specified in this paragraph are the following:

(A) The Consolidated Adjudications Facility.

(B) The Personnel Security Assurance Division of the Defense Manpower Data Center.

(C) Other organizations identified by the Secretary for purposes of this subsection.

(3) SUPPORTING ORGANIZATIONS.—In addition to the organizations identified pursuant to (2), the following organizations shall prioritize resources to directly support the execution of requirements in subsections (a) and (b):

(A) The Office of Cost Analysis and Program Evaluation.

(B) The Defense Digital Services.

(C) Other organizations designated by the Secretary for purposes of this paragraph.

(4) TIMING AND MANNER OF TRANSFER.—The Secretary—

(A) may carry out the transfer required by paragraph (1) at any time before the date specified in subsection (b) that the Secretary considers appropriate for purposes of this section; and

(B) shall carry out the transfer in a manner designed to minimize disruptions to the conduct of background investigations for personnel of the Department of Defense.

(d) Transfer of certain functions in OPM to DSS.—

(1) IN GENERAL.—For purposes of meeting the requirements in subsections (a) and (b), the Secretary of Defense shall, in consultation with the Director of the Office of Personnel Management, provide for the transfer of the functions described in paragraph (2), and any associated personnel and resources, to the Department of Defense.

(2) FUNCTIONS.—The functions described in this paragraph are the following:

(A) Any personnel security investigations functions transferred by the Secretary to the Director pursuant to section 906 of the National Defense Authorization Act for Fiscal Year 2004 (5 U.S.C. 1101 note).

(B) Any other functions of the Office of Personnel Management in connection with background investigations initiated by the Department of Defense that the Secretary and the Director jointly consider appropriate.

(3) LOCATION WITHIN DOD.—Any functions transferred to the Department pursuant to this subsection shall be located within the Defense Security Service.

(e) Conduct of certain actions.—For purposes of the conduct of background investigations following the commencement of the carrying out of the implementation plan referred to in subsection (b), the Secretary of Defense shall provide for the following:

(1) A single capability for the centralized funding, submissions, and processing of all background investigations, from within the Defense Security Service.

(2) The discharge by the Consolidated Adjudications Facility, from within the Defense Security Service pursuant to transfer under subsection (c), of adjudications in connection with the following:

(A) Background investigations.

(B) Continuous evaluation and vetting checks.

(f) Enhancement of information technology capabilities of NBIS.—

(1) IN GENERAL.—The Secretary of Defense shall, in consultation with the Director of the Office of Personnel Management, conduct a review of the information technology capabilities of the National Background Investigations System (NBIS) in order to determine whether enhancements to such capabilities are required for the following:

(A) Support for background investigations pursuant to this section and section 951 of the National Defense Authorization Act for Fiscal Year 2017.

(B) Support of the National Background Investigations Bureau.

(C) Execution of the conduct of background investigations initiated by the Department of Defense pursuant to this section, including submissions and adjudications.

(2) COMMON COMPONENT.—In providing for the transition and operation of the System as described in paragraph (1)(C), the Secretary shall, in consultation with the Director, develop a common component of the System usable for background investigations by both the Defense Security Service and the National Background Investigations Bureau.

(3) ENHANCEMENTS.—If the review pursuant to paragraph (1) determines that enhancements described in that paragraph are required, the Secretary shall, in consultation with the Director, carry out such enhancements.

(g) Use of certain private industry data.—In carrying out background and security investigations pursuant to this section and section 951 of the National Defense Authorization Act for Fiscal Year 2017, the Secretary of Defense may use background materials collected on individuals by the private sector, in accordance with national policies and standards, that are applicable to such investigations, including materials as follows:

(1) Financial information, including credit scores and credit status.

(2) Criminal records.

(3) Drug screenings.

(4) Verifications of information on resumes and employment applications (such as previous employers, educational achievement, and educational institutions attended).

(5) Other publicly available electronic information.

(h) Security clearances for contractor personnel.—

(1) IN GENERAL.—The Secretary of Defense shall review the requirements of the Department of Defense relating to position sensitivity designations for contractor personnel in order to determine whether such requirements may be reassessed or modified to reduce the number and range of contractor personnel who are issued security clearances in connection with work under contracts with the Department.

(2) GUIDANCE.—The Secretary shall issue guidance to program managers, contracting officers, and security personnel of the Department specifying requirements for the review of contractor position sensitivity designations and the number of contractor personnel of the Department who are issued security clearances for the purposes of determining whether the number of such personnel who are issued security clearances should and can be reduced.

(i) Personnel To support the transfer of functions.—The Secretary of Defense shall authorize the Director of the Defense Security Service to promptly increase personnel for the purpose of beginning the establishment and expansion of investigative capacity to support the phased transfer of investigative functions from the Office of Personnel Management to the Department of Defense under this section. The Director of Cost Analysis and Program Assessment shall advise the Secretary on the size of the initial investigative workforce and the rate of growth of that workforce.

(j) Briefings and reports.—

(1) REPORT ON FUTURE PERIODIC REINVESTIGATIONS, INSIDER THREAT, AND CONTINUOUS VETTING.—Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall, in consultation with the Director of National Intelligence and the Director of the Office of Personnel Management, submit to Congress a report that includes the following:

(A) An assessment of the feasibility and advisability of periodic reinvestigations of backgrounds of Government and contractor personnel with security clearances.

(B) A plan to provide the Government with an enhanced risk management model which reduces the gaps in coverage perpetuated by the current time-based periodic reinvestigations model, particularly in light of the increasing use of continuous background evaluations of such personnel.

(C) A plan for expanding continuous background vetting capabilities such as the Installation Matching Engine for Security and Analysis to the broader population, including those at the lowest Tiers and levels of access, which plan shall include details to ensure that all individuals credentialed for physical access to Department of Defense facilities and installations are vetted to the same level of fitness determinations and subject to appropriate continuous vetting.

(D) A plan to fully integrate and incorporate insider threat data, tools, and capabilities into the new end-to-end vetting processes and supporting information technology established by the Defense Security Service to ensure a holistic and transformational approach to detecting, deterring, and mitigating threats posed by trusted insiders.

(2) QUARTERLY BRIEFINGS.—Not later than the end of each calendar year quarter after the date of the enactment of this Act, the Secretary of Defense shall provide the Committees on Armed Services of the Senate and the House of Representatives a briefing on the progress of the Secretary in carrying out the requirements of this section during such calendar year quarter. Until the backlog of security clearance applications at the National Background Investigations Bureau is eliminated, each quarterly briefing shall also include the current status of the backlog and the resulting mission and resource impact to the Department of Defense and the defense industrial base.

(3) ANNUAL REPORTS.—Not later than the end of each calendar year after the date of the enactment of this Act, the Secretary shall submit to the committees of Congress referred to in paragraph (2) a report on the following for the calendar year in which such report is to be submitted:

(A) The status of the Secretary in meeting the requirements in subsections (a), (b), and (c) as of the end of such calendar year.

(B) The status as of the end of such calendar year of any transfers to be carried out pursuant to subsection (d).

(C) An assessment of the personnel security capabilities of the Department of Defense as of the end of such calendar year.

(4) TERMINATION.—No briefing or report is required pursuant to paragraph (2) or (3) after December 31, 2020.

subtitle DOther Matters

SEC. 951. Transfer of lead of Guam Oversight Council from the Deputy Secretary of Defense to the Secretary of the Navy.

(a) Transfer.—Section 5013 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(h) Until September 30, 2020, the Secretary of the Navy shall lead the Guam Oversight Council and shall be the principal representative of the Department of Defense for coordinating the interagency efforts in matters relating to Guam, including the following executive orders: