H.R. 3838

119th CONGRESS 1st Session

To authorize appropriations for fiscal year 2026 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 HOUSE OF REPRESENTATIVES · June 9, 2025 · Sponsor: Mr. Rogers of Alabama · Committee: Committee on Armed Services

Sec. 1. Short title; table of contents.

(a) Short title
- This Act may be cited as the or the .
(b) Table of contents

Title I—Aligning Acquisition to Warfighter Priorities and Operational Outcomes

Sec. 101. Alignment of the defense acquisition system with the needs of members of the Armed Forces.

(a) Implementation
- Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall revise Department of Defense Directive 5000.01 and any other relevant instructions, policies, or guidance to carry out the requirements of this section and the amendments made by this section.
(b) Objectives of defense acquisition system
- (1) In general
  - (a) In general
    - The Secretary of Defense shall ensure that the defense acquisition system exists to expeditiously provide the Armed Forces with the capabilities necessary to operate effectively, to address evolving threats, and to maintain the military advantage of the United States in the most cost-effective manner practicable.
  - (b) Guidance
    - The Secretary of Defense shall issue guidance to carry out subsection (a) that requires the following:
      - All activities of the defense acquisition system contribute to the expeditious delivery of capabilities to enhance the operational readiness of the Armed Forces and enable the missions of the Department of Defense.
      - The defense acquisition system maximizes the effective use of resources by delivering capabilities that offer the best value for the investment made in each capability.
      - The defense acquisition system encourages and supports the integration of innovative solutions to enhance military effectiveness and responsiveness to emerging threats.
      - The defense acquisition system encourages an iterative approach to designing and testing technical solutions to enable early identification of solutions that do not deliver desired results.
      - The defense acquisition system supports a leadership and organizational structure that encourages risk-taking, collaboration, and learning through failure.
      - The training and development of members of the acquisition workforce ensures that such members have the skills to effectively manage acquisition activities in accordance with this section.
  - Section 3102 of title 10, United States Code, is amended to read as follows:
- (2) Conforming amendments
  - (A) Under Secretary of Defense for Acquisition and Sustainment
    - Section 133b(b) of title 10, United States Code, is amended—
      - (i) in paragraph (1), by striking delivering and sustaining timely, cost-effective capabilities for the Armed Forces (and the Department)and inserting expeditiously providing the Armed Forces with the capabilities necessary to operate effectively, to address evolving threats, and to maintain the military advantage of the United States in the most cost-effective manner practicable; and
      - (ii) in paragraph (9)(A), by striking defense acquisition programsand inserting the defense acquisition system, in accordance with the objectives established pursuant to section 3102.
  - (B) Director of Operational Test and Evaluation
    - Section 139(b) of title 10, United States Code, is amended—
      - (i) by redesignating paragraphs (1) through (6) as paragraphs (2) through (7), respectively; and
      - (ii) by inserting before paragraph (2), as so redesignated, the following new paragraph:
        
        ensure that all operational test and evaluation activities are aligned with, and are conducted in a manner that supports, the objectives of the defense acquisition system established pursuant to section 3102 of this title;
  - (C) Director of Cost Assessment and Program Evaluation
    - Section 139a(d) of title 10, United States Code, is amended by inserting before .
(c) Civilian management of the defense acquisition system
- Section 3103 of title 10, United States Code, is amended—
  - in subsection (a), by striking to ensure the successful and efficient operation of the defense acquisition systemand inserting in accordance with the objectives of the defense acquisition system established pursuant to section 3102 of this title; and
  - in subsection (b), by striking and inserting the following:
    - in accordance with the objectives of the defense acquisition system established pursuant to section 3102 of this title. In carrying out this subsection, each service acquisition executive shall perform the following:
      - Implement strategies to effectively and efficiently respond to changes in capability requirements.
      - Use data-driven decisionmaking to manage trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to ensure acquisition and sustainment programs deliver the best value for the investment made in the program.
      - Use iterative development cycles and discontinue or terminate the development of capabilities—
        
        that no longer align with approved capability requirements or priorities; or
        
        are experiencing significant cost growth, performance deficiencies, or delays in schedule.
      - Ensure the period of assignment of an individual serving in a critical acquisition position (as defined in section 1731 of this title) is of sufficient duration to ensure the development and use of acquired expertise, institutional capacity, accountability in decisionmaking, and stability in the oversight and management of acquisition activities.
      - Ensure that contracting officers are appropriately trained and assigned to support effective contract management.
(d) Acquisition-Related functions of chiefs of the Armed Forces
- (1) Performance of Certain Acquisition-related Functions
  - Section 3104(a) of title 10, United States Code, is amended—
    - by inserting after ; and
      - The development of capability requirement statements for equipping the armed force concerned that—
        
        describe the operational problem to provide necessary context for the capability requirement; and
        
        describe the solution sought in a non-prescriptive manner to allow agile and innovative capability development to address the operational problem;
      - The implementation of strategies to effectively and efficiently inform recommendations regarding changes in capability requirements described in paragraph (1).
      - The recommendation of trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to ensure acquisition programs deliver the best value for the investment made.
      - In consultation with the Joint Requirements Council, the establishment and prioritization of requirements to expeditiously provide the Armed Forces with the capabilities needed to operate effectively, to address evolving threats, and to maintain the military advantage of the United States.
      - The use of data-driven decision making to prioritize resource allocation to meet operational readiness requirements (as defined in section 4322 of this title) and the materiel readiness objectives established by the Secretary of the military department concerned under section 118(c) of this title.
      - Support for an environment that enables the adoption and integration of innovative solutions and technologies to enhance military effectiveness and responsiveness.
      - Any recommendation for the termination of the development of capabilities—
        
        that no longer align with approved capability requirements or priorities;
        
        for which costs have significantly increased; or
        
        for which schedule delays have been significant.
      - Support for the development of career paths in acquisition for military personnel (as required by section 1722a of this title) to ensure such personnel have the necessary skills, knowledge, and experience to fulfill the objectives established pursuant to section 3102 of this title.
    - by amending paragraphs (1) through (7) to read as follows:
- (2) Adherence to Requirements in Major Defense Acquisition Programs
  - Section 3104(b) of title 10, United States Code, is amended—
    - in paragraph (1), by striking program capability document supporting a Milestone B or subsequent decisionand inserting requirements documents; and
    - in paragraph (2)—
      - (i) in subparagraph (A), by striking ; and
      - (ii) in subparagraph (B), by striking cost, schedule, technical feasibility, and performance trade-offsand inserting life-cycle cost, delivery schedule, performance objective, technical feasibility, and procurement quantity trade-offs.
- (3) Definitions
  - Section 3104(d) of title 10, United States Code, is amended to read as follows:
    - (d) Requirements document defined
      - In this section, the term requirements document means a document that establishes the need for a materiel approach to resolve a capability requirement or a joint capability requirement (as such terms are defined in section 181 of this title).
(e) Technical amendments
- In this chapter:
  - The term best value means, with respect to an acquisition, the optimal combination of cost, quality, technical capability or solution quality, and delivery schedule.
  - The term capability requirement has the meaning provided in section 181 of this title.
  - The term cost-effective means, with respect to an acquisition, the capacity to deliver better results for the same or lower cost compared to alternatives.
- Section 3101 of title 10, United States Code, is amended to read as follows:
- Section 3001(c) of title 10, United States Code, is amended by striking this sectionand inserting this part.

Sec. 102. Program executive officer responsibilities.

(a) In general
- Subchapter III of of title 10, United States Code, is amended by inserting after the following new section: chapter 87; section 1731
  - (a) In general
    - A program executive officer is the senior official responsible for the oversight of the plans, budgets, and execution of the programs assigned to the portfolio of such senior official, including life-cycle management.
  - (b) Objectives
    - In carrying out the activities described in subsection (a), the program executive officer shall seek to achieve the following objectives:
      - Expeditiously provide the Armed Forces with the capabilities needed to operate effectively, address evolving threats, and maintain the military advantage of the United States in the most cost-effective manner practicable.
      - Maximize the effective use of resources by delivering capabilities that offer the best value for the investment made in each capability.
      - Enable the integration of innovative solutions and technologies to enhance military effectiveness and responsiveness to emerging threats.
  - (c) Specific responsibilities
    - (1) In general
      - For the programs assigned to the portfolio of a program executive officer, such program executive officer shall be responsible for the following:
        
        Provide expeditious delivery of the capabilities necessary to effectively respond to national security challenges by overseeing the procurement, development, and sustainment of defense acquisition programs assigned to the program executive officer.
        
        Ensure the cost-effective allocation of resources by delivering operational capabilities.
        
        Adjust requirements, other than requirements that are established as key performance parameters, to maximize the agility and speed in program execution in accordance with the objectives described in subsection (b).
        
        Use iterative development cycles and discontinue or terminate the development of capabilities—
        
        (i) that no longer align with approved capability requirements (as defined in section 181 of this title) or priorities; or
        
        (ii) that are experiencing significant cost growth, performance deficiencies, or delays in schedule.
        
        Evaluate and implement trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to ensure acquisition and sustainment programs deliver the best value in meeting capability requirements (as defined in section 181 of this title).
        
        Use data-driven decisionmaking to prioritize resource allocation to meet operational readiness requirements and materiel readiness objectives established by the Secretary concerned under section 118(c) of this title.
        
        Collaborate with the Mission Engineering and Integration Activity established under section 203 of the to conduct cross-service technical and operational activities to integrate emerging technologies, prototypes, and operational concepts, as appropriate.
        
        Provide support to the Requirements, Acquisition, and Programming Integration Directorate with respect to the performance of the responsibilities of the Directorate under section 186 of this title and serve as a member of the Directorate in accordance with such section.
    - (2) Milestone decision authority duties
      - A program executive officer shall be the milestone decision authority for a program when directed by the service acquisition executive of the military department that is managing the program or if designated by the Secretary of Defense.
  - (d) Functional Support
    - The Secretary concerned with respect to a program executive officer shall ensure that there is assigned to such program executive officer the personnel and other resources required for such program executive officer to successfully perform the assigned duties and responsibilities of such program executive officer, including—
      - contracting and contract management;
      - estimating costs;
      - financial management;
      - life-cycle management and product support;
      - program management;
      - engineering and technical management; and
      - developmental testing and evaluation.
(b) Amendment to definitions
- The term program executive officer means an individual described in section 1732(a).
- Section 1737(a)(4) of title 10, United Stated Code, is amended to read as follows:

Sec. 103. Major capability activity areas and pathfinder programs.

(a) Transition plan required
- (1) Submission of plan
  - Not later than one year after the date of the enactment of this Act, the Secretary of Defense, in coordination with each Secretary of a military department, shall submit to the congressional defense committees a comprehensive plan for organizing the programs assigned to the portfolio of a program executive officer of the Department of Defense in a manner primarily organized around major capability activity areas (). MCAAs
- (2) Elements of the plan
  - The plan required under paragraph (1) shall be developed to more effectively facilitate the development, fielding, operation, sustainment, and modernization of capabilities of the Department of Defense in accordance with the objectives established pursuant to section 3102 of title 10, United States Code (as added by section 101 of this Act). Such plan shall include the following:
    - A description of each proposed MCAA, including how the specific capability of the Department of Defense that is the subject of each MCAA aligns with and supports joint military capabilities.
    - A proposed schedule, including benchmarks, for phased implementation of the plan to organize the programs of each military department and Defense Agency in a manner primarily organized around MCAAs.
    - Recommendations for statutory or regulatory changes needed to facilitate the reorganization of program executive offices to be primarily organized around MCAAs.
    - A strategy to preserve accountability for the delivery of a capability of the Department of Defense that is the subject of the proposed MCAA and to enable effective oversight of the proposed MCAA by the congressional defense committees.
    - A description of the process for designating a Pathfinder under subsection (b).
- (3) Organization by MCAAs
  - (A) In general
    - In organizing programs in a manner primarily organized around MCAAs under this subsection, the Secretary shall—
      - (i) organize each proposed MCAA in a capability-oriented structure that reflects the unique and specific aspects of the subject capability of the MCAA;
      - (ii) assign relevant development, procurement, operations, and sustainment activities of the Department to the proposed MCAA as appropriate; and
      - (iii) ensure each proposed MCAA is organized in a manner that—
      - will improve the ability to measure and manage the overall performance in the delivery of the subject capability of the proposed MCAA; and
      - connects amounts authorized for activities assigned to the proposed MCAA to the delivery of subject capability.
  - (B) Flexibility
    - The Secretary of Defense shall ensure each military department and Defense Agency has flexibility, according to their specific mission requirements, in the organization of proposed MCAAs.
(b) Designation of pathfinder MCAAs
- (1) Designation
  - Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall—
    - designate at least two program executive offices of the Department of Defense to be known as ; Pathfinders
    - identify the program executive officer with the responsibility of administering each such Pathfinder;
    - ensure each such program executive officer organizes the programs assigned to such offices into a MCAA in accordance with the requirements of subsection (a)(3); and
    - submit to the congressional defense committees a notification of each designation made under subparagraph (A), including the total amount authorized to carry out each Pathfinder for fiscal year 2026 and a description of the MCAA associated with each Pathfinder.
- (2) Modified transfer authority for Pathfinders
  - (A) Authority
    - The Secretary of Defense, acting through a Secretary of a military department or the head of a Defense Agency, may transfer amounts authorized for programs, projects, or activities that are included in a Pathfinder under the jurisdiction of such Secretary or head among such programs, projects, or activities.
  - (B) Limitations
    - A transfer made under this paragraph—
      - (i) shall directly support delivery of the capability of the Department of Defense that is the subject of the Pathfinder;
      - (ii) may not be used to initiate a new start program (as described in section 3601 of title 10, United States Code);
      - (iii) may not be used to terminate a program or activity of the Department that was in operation on or before the date of the designation of the Pathfinder; and
      - (iv) may not exceed 40 percent of the total amount authorized to carry out a Pathfinder specified under paragraph (1)(D).
- (3) Additional pathfinders
  - The Secretary of Defense may designate additional MCAAs as Pathfinders under the authority of this subsection if the Secretary notifies the congressional defense committees not later than 15 days prior to each such designation.
(c) Report to congress
- (1) In general
  - Not later than 540 days after the date of the enactment of this Act, and annually thereafter until December 31, 2029, the Secretary of Defense shall submit to the congressional defense committees a report assessing the effectiveness of the use of a capability-oriented structure in subsection (a)(3) and Pathfinders in subsection (b) to—
    - improve the ability to measure and manage the overall performance in the delivery of the subject capability of the proposed MCAA or Pathfinder;
    - inform and improve program management and planning for future activities assigned to the proposed MCAA or Pathfinder for the delivery of subject capability; and
    - achieve the objectives of the defense acquisition system established pursuant to section 3102 of title 10, United States Code (as added by section 101 of this Act).
- (2) Contents
  - The report required under paragraph (1) shall include the following:
    - The extent to which the use of MCAAs and use of the transfer authority under subsection (b)(2) for Pathfinders affect the speed of addressing emerging threats and adopting new technologies.
    - An analysis of any costs or benefits of using MCAAs.
    - Recommendations, including statutory or regulatory modifications, for—
      - (i) expanding the use of Pathfinders; and
      - (ii) continuing the transition to using MCAAs.
(d) Definitions
- In this section:
  - The term or means a compilation of activities that relate to the delivery of a capability of the Department of Defense, as determined by the Secretary of Defense. major capability activity area,MCAA
  - The term joint military capabilities has the meaning given in section 181 of title 10, United States Code, as amended by section 201 of this Act.
  - The term program executive officer has the meaning given in section 1732 of title 10, United States Code, as added by section 102 of this Act.

Sec. 104. Product support manager responsibilities and requirements.

(a) In general
- Subchapter III of of title 10, United States Code, is amended by inserting after (as added by section 102 of this Act) the following new section: chapter 87; section 1732
  - (a) In general
    - A product support manager is the individual responsible for managing support functions required to field and maintain the readiness and operational capability of a covered system in support of the life-cycle management responsibilities of the program manager for such covered system.
  - (b) Objectives
    - In carrying out the activities described in subsection (a), the product support manager shall seek to achieve the objectives of the defense acquisition system established pursuant to section 3102 of this title.
  - (c) Specific responsibilities
    - A product support manager shall be responsible for the following:
      - Provide product support and subject matter expertise with respect to a covered system to the program manager for the covered system to assist with the development, resourcing, implementation, and execution of the product support strategy developed by the product support manager under section 4322 of this title for the covered system.
      - Collaborate with the chief engineer and systems engineers for the covered system—
        
        to develop the life-cycle sustainment plan and any product support plans for the covered system; and
        
        to analyze the operating and support costs of the covered system to ensure the cost-effective operation, management, and availability of the covered system.
      - Conduct early risk identification, mitigation, and product support analyses that inform best value solutions in life-cycle planning and management.
      - Provide input on systems engineering requirements, design, budgeting, maintenance planning, and acquisition strategies for covered systems.
      - Support the program manager in evaluating trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to ensure each covered system delivers the greatest value for the investment made in the covered system.
      - Use data-driven decision making, predictive analysis, and appropriate modeling tools related to reliability and maintainability of the covered system to prioritize resource allocation to meet operational readiness requirements and materiel readiness objectives (established under section 118(c) of this title).
      - Support each Secretary of a military department in performance of a core logistics analysis pursuant to section 2464 of this title.
  - (d) Covered system defined
    - In this section, the term covered system has the meaning given in section 4322 of this title.
(b) Education, training, and experience requirements for product support managers
- Section 1735 title 10, United States Code, is amended—
  - by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and
    - (c) Product support manager
      - Before being assigned to a position as product support manager, a person—
        
        shall have completed all life-cycle logistics certification and training requirements prescribed by the Secretary of Defense;
        
        shall have executed a written agreement as required in section 1734(b)(2) of this title; and
        
        in the case of—
        
        a product support manager of a major defense acquisition program, shall have at least eight years of experience in life-cycle logistics, at least two years of which were performed in a systems program office or similar organization; and
        
        a product support manager of a significant nonmajor defense acquisition program, shall have at least six years of experience in life-cycle logistics.
  - by inserting after subsection (b) the following new subsection:
(c) Conforming amendments
- (iv) Product support manager.
- Section 1731(a)(1)(B) title 10, United States Code, is amended by adding at the end the following new clause:

Sec. 105. Amendments to life-cycle management and product support.

(a) Reorganization of life-Cycle and sustainment chapter
- (1) In general
  - of title 10, United States Code, is amended— Chapter 323
    - by repealing sections 4321, 4323, and 4324;
    - by redesignating section 4328 as section 4321 and transferring such section so as to appear after the table of sections at the beginning of such chapter;
    - by redesignating section 4325 as section 4323 and transferring such section so as to appear after section 4321;
    - in section 4323, as so redesignated, by striking section 4324 of this titleand inserting section 4322 of this title; and
    - by amending the table of sections at the beginning of such chapter to read as follows:
- (2) Conforming amendments
  - Section 3041(a) of title 10, United States Code, is amended by striking sections 4292(e) and 4321and inserting section 4292(e).
  - Section 3221(b)(2) of title 10, United States Code, is amended by striking 4321, 4323, and 4328 of this titleand inserting and 4321 of this title,.
  - Section 4211(c)(2)(D) of title 10, United States Code, is amended by striking section 4324 of this titleand inserting section 4322 of this title.
  - Section 4252(b)(14) of title 10, United States Code, is amended by striking section 4324(b) of this titleand inserting section 4322 of this title.
(b) Life-Cycle management and product support
- of title 10, United States Code, as amended by subsection (a), is further amended by inserting after section 4321 the following new section: Chapter 323
  - (a) In general
    - The Secretary of Defense shall ensure that each covered system is supported by a life-cycle sustainment plan—
      - that is approved by the senior acquisition executive responsible for such covered system; and
      - that meets applicable operational readiness requirements and materiel readiness objectives (established under section 118(c) of this title) in the most cost-effective manner practicable.
  - (b) Product support manager
    - The Secretary of Defense shall designate a product support manager (as defined in section 1733 of this title) to serve under the supervision of a program manager for each covered system.
  - (c) Life-Cycle sustainment plan
    - A product support manager shall develop, update, and implement a life-cycle sustainment plan for each covered system for which the product support manager is responsible. Such plan shall include the following:
      - A comprehensive product support strategy to best achieve operational readiness requirements and materiel readiness objectives throughout the planned life cycle of such system.
      - A baseline life-cycle cost estimate for the covered system based on the planned product support strategy described in subparagraph (A).
      - Recommended engineering and design considerations that support cost-effective sustainment of the covered system and best value solutions in life-cycle planning and management.
      - An intellectual property management plan for product support developed in accordance with section 3774 of this title.
      - A strategy to maximize use of public and private sector capabilities to establish Government-private partnerships—
        
        (i) with appropriate incentives for each partner to contribute to the achievement of operational readiness requirements and materiel readiness objectives in the most cost-effective manner practicable; and
        
        (ii) that considers the roles of each partner as the covered system transitions from acquisition, development, production, fielding, sustainment, and disposal.
      - A plan to transition the covered system from production to initial fielding that addresses specific products or services required for successful initial fielding of the covered system, including—
        
        (i) a description of the necessary tooling or other unique support equipment, requirements for initial spare parts and components, technical handbooks and maintenance manuals, maintenance training, and facilities;
        
        (ii) an identification of the funding required to provide such products and services for any initial fielding location of the covered system;
        
        (iii) an identification of any procurement line, program element, or subactivity group in the budget of the Secretary concerned associated with such products or services;
        
        (iv) the timeline for delivery of such products and services; and
        
        (v) an assessment of any reduction in operational readiness requirements and materiel readiness objectives if such products and services are not provided in accordance with clause (iv).
    - In developing each life-cycle sustainment plan required by this section, the product support manager shall consider the following:
      - Affordability constraints and key cost factors that could affect operating and support costs during the life cycle of the covered system.
      - Sustainment risks or challenges to sustaining the covered system in operational environments, included contested logistics environments (as defined in section 2926 of this title).
      - Compliance with—
        
        (i) requirements to maintain a core logistics capability under section 2464 of this title; and
        
        (ii) limitations on the performance of depot-level maintenance of materiel under section 2466 of this title.
      - A defense industrial base strategy to maintain a robust, resilient, and innovative defense industrial base to support requirements throughout the life cycle of the covered system.
  - (d) Continuous assessment and active management
    - In carrying out the duties of this section and section 1733 of this title, the product support manager shall—
      - continuously assess and actively manage performance of each covered system for which the product support manager is responsible against the life-cycle sustainment plan for such covered system; and
      - as appropriate, integrate commercial best practices, use commercial standards, and use advanced technologies to enhance the product support of each covered system.
  - (e) Recommendations
    - The product support manager shall recommend changes to the product support strategy required under subsection (c)(1)(A) of a covered system to the program manager responsible for such covered system to meet the requirements of subsection (a).
    - The program manager shall provide to the senior acquisition executive responsible for a covered system any recommendations for such covered system made under paragraph (1) that the program manager did not implement along with the rationale for not implementing such recommendations.
  - (f) Definitions
    - In this section:
      - The term covered system means—
      - The term operational readiness means the capability of a unit of the Armed Forces, vessel, weapon system, or equipment to perform the missions or functions for which it is organized or designed.
      - The term product support means the set of support functions, as determined by the product support manager, required to field and maintain the readiness and operational capability of a covered system, or a subsystem or component of a covered system.
(c) Conforming amendments to materiel readiness metrics and objectives for major weapon systems
- Section 118 of title 10, United States Code, is amended—
  - in the section heading, by inserting before ;
  - in subsection (b), by striking shall addressand inserting shall establish procedures and a computation methodology to determine;
  - in subsection (c)—
    - in paragraph (1), by striking the metrics requiredand all that follows through the period at the end and inserting materiel readiness objectives for each major weapon system.; and
    - in paragraph (2), by striking the metrics required by subsection (b)and inserting such readiness objectives;
  - in subsection (d)(2), by striking readiness goals or objectivesand inserting materiel readiness objectives;
  - in subsection (e), in the matter preceding paragraph (1), by inserting a comma after ; and
  - in subsection (f)—
    - by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and
      - The term materiel readiness objective means the minimum required availability of each major weapon system that is necessary to fulfill the requirements of the strategic framework and guidance referred to in subsection (a).
    - by inserting after paragraph (2) the following new paragraph:

Sec. 106. Navy Senior Technical Authority.

Section 8669b of title 10, United States Code, is amended—

reports directly to the program executive officer.
in subsection (a)(2), by amending subparagraph (B) to read as follows:
in subsection (b)—
- by inserting before ; and
  - Each Senior Technical Authority shall also be responsible for the determination that all design requirements for a vessel class are directly related to a key performance parameter or key system attribute established in the capability development document for the vessel class. Any requirements that the Senior Technical Authority determines are unnecessary to meet a key performance parameter or key system attribute shall not be approved.
- by adding at the end the following new paragraph:

Title II—Accelerating the Requirements Process

Sec. 201. Joint Requirements Council.

(a) Implementation
- Not later than 30 days after the date of the enactment of this Act, the Chairman of the Joint Chiefs shall revise policies for the Joint Strategic Planning System (established under the Chairman of the Joint Chiefs of Staff Instruction 3100.01F), the Manual for the Operation of the Joint Capabilities Integration and Development System (issued October 30, 2021) and any other relevant instructions, policies, or guidance to carry out the requirements of this section and the amendments made by this section.
(b) Amendment to name and mission of Joint Requirements Oversight Council
- Section 181 of title 10, United States Code, is amended—
  - in the section heading, by striking ;
  - in subsection (a), by striking and inserting the following:
    - Joint Requirements Council (in this section referred to as the ) in the Department of Defense. The Council shall—
      - assist the Chairman of the Joint Chiefs of Staff in carrying out the functions described in section 153 of this title; and
      - provide recommendations for addressing joint operational problems to the Requirements, Acquisition, and Programming Integration Directorate established under section 186 of this title (in this section referred to as ). RAPID
  - by striking each place it appears and inserting Joint Requirements Council.
(c) Duties
- Subsection (b) of such section 181 is amended to read as follows:
  - (b) Duties
    - The Council shall support the objectives established pursuant to section 3102 of this title by performing the following duties:
      - Continuously evaluating global trends, adversary capabilities, and emerging threats to inform awareness and understanding of joint operational problems.
      - In coordination with commanders of combatant commands, compiling, refining, and prioritizing joint operational problems.
      - Identifying and prioritizing gaps in joint military capabilities to address joint operational problems.
      - Identifying advances in technology and innovative concepts of operation that could improve the ability of the joint force to address evolving threats and maintain the military advantage of the United States.
      - Developing a joint capability requirement statement that—
        
        describes the joint operational problem to provide necessary context for the joint capability requirement; and
        
        describes the solution sought in a nonprescriptive manner to allow agile and innovative development of joint capability requirements to address the joint operational problem.
      - Making the following recommendations to RAPID:
        
        With respect to a quick action requirement, actions to fulfill such quick action requirement, not later than 30 days after receipt or identification of such quick action requirement.
        
        Actions to fulfill each joint capability requirement necessary to address joint operational problems, not later than 60 days after receipt or identification of such a joint operational problem.
        
        Modifications to joint force design suitable for addressing joint operational problems or effectively integrating advancements in technology and new concepts of operation.
        
        Ways to improve operational effectiveness, increase operational flexibility, or improve interoperability and coordination between and among joint military capabilities and the military capabilities of allies or partners.
      - Providing notification to Deputy Secretary of Defense—
        
        upon receipt or identification of a quick action requirement; and
        
        upon submission of any recommendation to RAPID.
(d) Composition
- Subsection (c) of such section 181 is amended—
  - in paragraph (1)(A)—
    - by inserting before ; and
    - by striking joint performance requirementsand inserting joint capability requirements; and
  - in paragraph (3), by inserting after .
(e) Advisors
- Subsection (d) of such section 181 is amended—
  - in paragraph (2)—
    - by inserting before ; and
    - by striking its mission under paragraphs (1) and (2) of subsection (b)and inserting the duties described in subsection (b); and
  - in paragraph (3)—
    - by striking seek, and strongly consider,and inserting seek and consider;
    - by striking ; and
    - by striking .
(f) Responsibility for Capability Requirements
- Subsection (e) of such section 181 is amended to read as follows:
  - (e) Responsibility for Capability Requirements
    - The Chief of Staff of an armed force is responsible for the capability requirements for that armed force.
(g) Analytic and Engineering Support
- Subsection (f) of such section 181 is amended—
  - in the subsection heading, by inserting after ;
  - by inserting after ; and
  - by striking .
(h) Availability of Information to Congressional Defense Committees
- Subsection (g) of such section 181 is amended—
  - in the subsection heading, by striking ; and
  - by striking oversight informationand inserting information.
(i) Definitions
- Subsection (h) of such section 181 is amended to read as follows:
  - (h) Definitions
    - In this section:
      - The term capability requirement means a requirement for a capability that is critical or essential to address an operational problem.
      - The term joint capability requirement means a capability requirement, including a capability requirement related to a requirement for joint force interoperability, that is critical or essential to address a specific joint operational problem.
      - The term joint military capabilities means the collective capabilities across the joint force, including both joint and force-specific capabilities, that are available to conduct military operations.
      - The term joint operational problem means a joint challenge faced by a combatant command in achieving an assigned military objective and may include limitations in capabilities, resources, or the ability to effectively and efficiently coordinate across the joint force, with another combatant command, among joint military capabilities, or with the military capabilities of allies or partners.
      - The term operational problem means a challenge or barrier in an operational environment that needs to be overcome to achieve a specific military objective.
      - The term quick action requirement has the meaning given in Department of Defense Directive 5000.71 titled (August 24, 2012). The term has the meaning given in Department of Defense Directive 5000.71 titled (August 24, 2012). Rapid Fulfillment of Combatant Commander Urgent Operational Needs
(j) Conforming amendments
- (1) Title 10, United States Code
  - Title 10, United States Code, is amended—
    - in section 139a, by striking each place it appears and inserting Joint Requirements Council;
    - in section 153(a)(5)(F), by striking section 181 of this titleand inserting sections 181 and 186 of this title;
    - in section 179(c)(9)—
      - (i) by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council; and
      - (ii) by striking section 181(h)and inserting section 181;
    - in section 2926(f)(5)(C), by striking describingand all that follows through and inserting details regarding;
    - in section 3067(b)(1), by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council;
    - in section 3136(e)(1)(A)(ii), by striking approved by the Joint Requirements Oversight Council andand inserting recommended for approval by the Requirements, Acquisition, and Programming Integration Directorate (established under section 186 of this title);
    - in section 4202(a)(2)(A), by striking joint military requirementand all that follows through the period at the end and inserting the following: ;
    - by amending section 4251(e)(1) to read as follows:
      - The term requirements document has the meaning given in section 3104(d) of this title.
    - in section 4252(b)(9), by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council;
    - in section 4376—
      - (i) in subsection (a), by striking ;
      - (ii) in subsection (b)(2)(B), by striking joint military requirement (as defined in section 181(g)(1) of this title) at less costand inserting joint capability requirement (as defined in section 181 of this title) at less cost; and
      - (iii) in subsection (c)(3), by striking joint military requirementsand inserting joint capability requirements; and
    - in section 5514(b)(2)(C)(ii), by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council.
- (2) Other laws
  - Section 902(d) of the National Defense Authorization Act for Fiscal Year 2024 ( note) is amended— 10 U.S.C. 139a
    - (i) by striking , performance requirements, and joint performance requirementsand inserting or performance requirements; and
    - (ii) by striking Joint Requirements Oversight Council to validate such requirementsand inserting Joint Requirements Council.
  - Section 1684(d)(4)(A)(i) of the National Defense Authorization Act for Fiscal Year 2024 ( note) is amended by striking either approved by, or in development for, the Joint Requirements Oversight Counciland inserting in development for consideration or under consideration by the Joint Requirements Council. 10 U.S.C. 2271
  - Section 1686(b)(1) of the National Defense Authorization Act for Fiscal Year 2024 ( note) is amended by striking through the Joint Requirements Oversight Counciland inserting in consultation with the Requirements, Acquisition, and Programming Integration Directorate (established under section 186 of title 10, United States Code). 10 U.S.C. 2224
  - Section 1510(b)(2) of the National Defense Authorization Act for Fiscal Year 2023 ( note) is amended by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council. 10 U.S.C. 113
  - Section 915(a)(1) of the National Defense Authorization Act for Fiscal Year 2023 ( note) is amended by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council. 10 U.S.C. 132
  - Section 938(a)(1) of the National Defense Authorization Act for Fiscal Year 2014 ( note prec.) is amended by striking Joint Requirements Oversight Counciland inserting Joint Requirements Council. 10 U.S.C. 4571
- (3) Repeals
  - The following provisions of law are repealed:
    - Section 942 of the National Defense Authorization Act for Fiscal Year 2008 ( note). 10 U.S.C. 181
    - Section 916 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 ( note). 10 U.S.C. 181
    - Section 105(b) of the Weapon Systems Acquisition Reform Act of 2009 ( note). 10 U.S.C. 181
    - Section 201 of the Weapon Systems Acquisition Reform Act of 2009 ( note). 10 U.S.C. 3102

Sec. 202. Establishment of the Requirements, Acquisition, and Programming Integration Directorate.

(a) In general
- of title 10, United States Code, is amended by inserting after the following new section: Chapter 7; section 185
  - (a) Establishment
    - There is within the Department of Defense a Requirements, Acquisition, and Programming Integration Directorate (in this section referred to as ). RAPID
  - (b) Purposes
    - RAPID shall—
      - serve as the principal forum within the Department of Defense to inform, coordinate, and evaluate solutions to joint operational problems;
      - provide senior oversight, coordination, and budget and capability harmonization with respect to such matters; and
      - act as an advisory body to the Secretary of Defense and the Deputy Secretary of Defense with respect to such matters.
  - (c) Organization and membership
    - RAPID shall consist of the following members:
      - The Chairman of the Joint Requirements Council and the Director of Cost Assessment and Program Evaluation, who shall serve as co-directors of RAPID.
      - One member designated by each commander of a combatant command.
      - One member designated by the Chairman of the Joint Requirements Council.
      - One member designated by the Director of Cost Assessment and Program Evaluation.
      - One member designated by each service acquisition executive of a military department.
      - One member designated by the principal staff assistant for the Mission Engineering and Integration Activity (established under section 203 of the ).
      - One member designated by the executive director of the Joint Rapid Acquisition Cell (as described in the Department of Defense Directive 5000.71 titled (August 24, 2012)). Rapid Fulfillment of Combatant Commander Urgent Operational Needs
      - One member designated by each portfolio executive officer or a similar member of the acquisition workforce responsible for the execution of a recommendation under consideration by RAPID.
  - (d) Responsibilities
    - RAPID shall—
      - promptly convene relevant members to assess a proposed joint capability requirement to address a joint operational problem by considering, with respect to such proposed joint capability requirement—
        
        (i) associated resource requirements;
        
        (ii) mission engineering and interoperability considerations for integration into joint architectures; and
        
        (iii) factors related to acquisition and sustainment; and
      - provide prioritized recommendations for solutions to such joint operational problem to the Secretary of Defense and Deputy Secretary of Defense.
    - In carrying out paragraph (1), RAPID shall—
      - use data-driven decisionmaking to prioritize resource allocation;
      - maximize the effective use of resources by enabling timely delivery of solutions to address a joint operational problem in a manner that provides the greatest value for the investment made;
      - enable the adoption and integration of solutions to enhance military effectiveness and responsiveness to emerging threats; and
      - in addition to any other considerations required under this subsection, consider—
        
        (i) joint capability requirement statements or other relevant justification materials provided by the Joint Requirements Council;
        
        (ii) any analysis and recommendations provided by the Mission Engineering and Integration Activity or the Director of Cost Assessment and Program Evaluation relating to resource requirements described in paragraph (1)(A)(i);
        
        (iii) recommendations from relevant service acquisition executives or program executive officers related to planning and execution of the proposed joint capability requirement, including budget planning and management, acquisition approach, program management, and life-cycle management for a proposed joint capability requirement; and
        
        (iv) the need to incorporate measure for technology protection in certain covered systems to enable the use or sale of proposed technology solutions to joint operational problems with allies and partner countries in a manner that protects national security interest while promoting international collaboration.
  - (e) Recommendation
    - Not later than 30 days after the date of receipt of a recommendation with respect to a joint capability requirement for a joint operational problem, from the Joint Requirements Council in accordance with section 181 of this title, RAPID shall submit to the Deputy Secretary of Defense a recommendation for a solution to the joint operational problem that includes the following:
      - A description of the resources needed to implement the solution and, as appropriate, resources needed to support the acquisition and sustainment of such solution of over the anticipated life cycle of the solution.
      - Any recommended actions necessary to enable integration of the solution into the joint force or to revise joint concepts of operation to best resolve the joint operational problem.
      - With respect to a solution for which access may be shared with an ally or partner country, recommended considerations—
        
        (i) to be incorporated during the design and development phase of the solution; and
        
        (ii) to facilitate future production and logistics support for the solution to the ally or partner country.
      - Any necessary changes to policy or guidance to enable effective acquisition, fielding, and employment of a solution that is a joint military capability.
      - Any other recommended actions to expeditiously provide the Armed Forces with the capabilities necessary to operate effectively, to address evolving threats, and to maintain the military advantage of the United States in the most cost-effective manner practicable.
    - The co-chairs of RAPID may request an additional amount of time, not to exceed 30 days, to provide a recommendation related to a joint capability requirement that is not a quick action requirement to the Deputy Secretary of Defense under this subsection.
  - (f) Determination
    - Not later than 30 days after receipt of a recommendation under subsection (e), the Deputy Secretary of Defense shall issue a memorandum that approves, approves with modification, or rejects such a recommendation.
    - The Deputy Secretary of Defense shall include along with a memorandum that approves or approves with modification a recommendation described in paragraph (1) specific direction and guidance to the applicable element of the Department of Defense to which such recommendation applies.
    - The Deputy Secretary of Defense shall include along with a memorandum that rejects a recommendation described in paragraph (1) a specific direction—
      - for alternative action to be taken by the applicable element of the Department of Defense to which such recommendation applies to address the relevant joint operational problem; or
      - to RAPID for further action to address the relevant joint operational problem.
  - (g) Notification
    - If the Deputy Secretary of Defense fails to issue a memorandum as required by subsection (f) within 90 days after the date on which the Joint Requirements Council provides a recommendation to address a joint operational problem to the RAPID, the Secretary of Defense shall submit to the congressional defense committees a notification of such failure.
  - (h) Definitions
    - In this section:
      - The terms , , , and have the meanings given, respectively, in section 181 of this title. joint capability requirement,joint military capability,joint operational problem,quick action requirement
      - The term relevant member means a member of RAPID (or a designee) that has a primary interest in, or responsibility for, a proposed joint capability requirement or quick action requirement under assessment by RAPID.
(b) Conforming amendments to Director of Cost Assessment and Program Evaluation
- Section 139a(d) of title 10, United States Code, is amended—
  - by redesignating paragraphs (4) through (9) as paragraphs (5) through (10), respectively; and
    - Analysis and advice for resource discussions relating to joint capability requirements under consideration by the Requirements, Acquisition, and Programming Integration Directorate pursuant to section 186 of this title.
  - by inserting after paragraph (3) the following new paragraph:

Sec. 203. Establishment of the Mission Engineering and Integration Activity.

(a) Establishment
- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall establish within the Department of Defense a Mission Engineering and Integration Activity (in this section referred to as ). MEIA
(b) Designation
- The Secretary of Defense shall designate a principal staff assistant from within the Office of the Secretary of Defense whose office shall serve as the office of primary responsibility for MEIA.
(c) Duties
- The principal staff assistant designated under subsection (b) shall have the following duties:
  - Lead cross-service activities to develop, identify, analyze, and validate integrated technology solutions to address joint operational problems.
  - Coordinate with the appropriate program executive officers to align and implement such activities.
  - Proactively seek and consider feedback of the primary users and operators of proposed technology solutions to address joint operational problems throughout the implementation of such activities.
  - Upon request, perform analysis for, experiment with, and prototype technology to integrate such technology into joint architectures, to use such technology, to inform operational concepts, and to provide analysis or recommendations regarding the use of such technology to the Requirements, Acquisition, and Programming Integration Directorate, established by section 186 of title 10, United Stated Code (in this section referred to as ). RAPID
  - Coordinate with commanders of the combatant commands to understand the priorities of commanders and support the fielding of integrated technology solutions to address joint operational problems.
  - Upon request, assist a program executive officer in carrying out the responsibilities established under section 1732 of title 10, United States Code (as added by section 102 of this Act), by providing analysis, recommendations, and engineering assistance in the integration of technology solutions related to the capabilities for which the program executive officer is responsible.
  - Use existing authorities (including authorities provided in section 4022 of title 10, United States Code) to carry out this section.
(d) Implementation plan
- (1) Plan
  - Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees an implementation plan for MEIA.
- (2) Elements
  - The plan required by paragraph (1) shall include a description of the following:
    - The organizational structure and resource requirements associated with the establishment and operation of MEIA.
    - How MEIA will support and inform the RAPID in carrying out the requirements of section 186 of title 10, United States Code.
    - Each budget line item or program element that will be associated with the activities of MEIA.
    - Coordination between MEIA and relevant elements of the Department of Defense that are established to identify and support the development of, experimentation with, and integration of technology solutions to address joint operational problems for the Department, including—
      - (i) the Defense Innovation Unit established under section 4217 of the title 10, United States Code;
      - (ii) the Defense Research and Development Rapid Innovation Program established under section 4061 of such title;
      - (iii) a entity of the Department of Defense that is a member of the Defense Innovation Community of Entities established by the Director of the Defense Innovation Unit;
      - (iv) the Strategic Capabilities Office; and
      - (v) recipients of awards under the Small Business Innovation Research Program or the Small Business Technology Transfer Program (as defined in section 9 of the Small Business Act ()). 15 U.S.C. 638
    - How MEIA will coordinate with and assist—
      - (i) the commanders of combatant commands in fielding integrated technology solutions to address joint operational problems under subsection (c)(5); and
      - (ii) the program executive officers and each Secretary of a military department in the integration of technology to enhance military effectiveness and responsiveness.
    - Any recommendations for changes to statute or policy for successful implementation of this section.
(e) Assessment
- Not later than five years after the date of the establishment of MEIA, the Secretary of Defense shall submit to the congressional defense committees an assessment of whether MEIA should be modified, made permanent, or terminated based on its effectiveness in carrying out the requirements of this section.
(f) Joint operational problem defined
- In this section, the term joint operational problem has the meaning given in section 181 of title 10, United States Code.

Title III—Striking the Balance Between Regulation and Efficiency

(a) Reduction or elimination of CAS
- (1) In general
  - Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall—
    - identify actions necessary to streamline requirements for compliance with the cost accounting standards established under section 1502 of title 41, United States Code (in this section referred to as ), in the performance of a contract with the Department of Defense; and CAS
    - reduce or eliminate such requirements under the circumstances described in paragraph (2).
- (2) Circumstances described
  - The circumstances described in this paragraph are as follows:
    - With respect to an action to eliminate compliance with CAS, if reliance on a similar requirement under generally accepted accounting principles (in this section referred to as ) would materially achieve uniformity and consistency in cost accounting with respect to such elimination without bias or prejudice to parties to a contract. GAAP
    - If other existing requirements in guidance or regulation will sufficiently protect the interests of the Secretary of Defense in the oversight of cost contracts.
    - If such requirement is no longer necessary or appropriate.
(b) Assessment of GAAP To meet Department of Defense needs
- (1) In general
  - The Secretary of Defense shall conduct an assessment of the steps necessary to enable the use of GAAP instead of CAS as the baseline for standards of financial accounting and reporting for the contracts of the Department of Defense. Such assessment shall include—
    - an identification of needed changes to law, regulation, or policy to enable the Secretary to eliminate the use of CAS and implement the use of GAAP as such baseline; and
    - an identification any Department-specific standards that would be required in addition to GAAP to support the unique requirements of defense contracts.
- (2) Report
  - Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report on the findings of the assessment required by paragraph (1), along with any recommended actions for Congress to reduce or eliminate requirements for compliance with CAS.

Sec. 302. Review of commercial buying practices.

(a) Review required
- (1) In general
  - Not later than 120 days after the enactment of this Act, the Secretary of Defense shall carry out a comprehensive review of the approach of the Department of Defense to acquiring commercial products and commercial services and the implementation of the requirements of the Federal Acquisition Streamlining Act of 1994 () by the Department. Public Law 103–355
- (2) Review requirements
  - The review required by paragraph (1) shall include an assessment of each of the following as they relate to the approach of the Department of Defense to acquiring commercial products and commercial services:
    - The policies, procedures, guidance, and instructions of the Department of Defense.
    - The extent to which contracts entered into by the Department of Defense for the acquisition of commercial products or commercial services include requirements or other provisions that should not apply to the acquisition of a commercial product or commercial service and the extent to which such requirements or other provisions are included in subcontracts under such contracts.
    - Training curricula, educational materials, and associated activities of the Department of Defense related to acquiring commercial products and commercial services, including such curricula, materials, and activities that pertain to the determination of a product or service as a commercial product or commercial service and the congressional intent that the definitions of the terms and should be applied broadly. commercial product,commercial service
    - Audit and oversight policies and practices of the Department of Defense.
    - Incentives that discourage the acquisition workforce from acquiring commercial products or commercial services.
    - The process by which the Department of Defense develops and issues regulations related to the acquisition of commercial products or commercial services, including delays in rulemaking and the resulting delays in the implementation of policies intended to improve or streamline the acquisition of commercial products or commercial services.
    - Requirements in solicitations or contracts of the Department of Defense requiring the use of military specifications or standards when applicable commercial specifications or standards were available that could have meet the needs of the Department served by such military specifications or standards.
    - The process by which the Department of Defense evaluates past performance, including performance under Federal, State, and local government and private contracts (as described in section 15.305(a)(2)(ii) of the Federal Acquisition Regulation), in the acquisition of commercial products or commercial services.
(b) Report
- Not later than 180 days after the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that—
  - describes the findings of the review required by subsection (a)(1);
  - describes the corrective actions taken by the Secretary to address the issues identified pursuant to such review, including any findings of noncompliance by the Department of Defense with the requirements of the Federal Acquisition Streamlining Act of 1994 () or any other statutory or regulatory requirements related to advancing and enabling the procurement of commercial products and commercial services; and Public Law 103–355
  - includes any recommendations of the Secretary on actions that Congress may take to better enable the Department of Defense to take advantage of the benefits of acquiring commercial products and commercial services.

Sec. 303. Adjustments to certain acquisition thresholds.

(a) Major program
- Section 3041 of title 10, United States Code, is amended—
  - in subsection (c)(1)—
    - in subparagraph (A), by striking striking15,000,000 (based on fiscal year 1990 constant dollars)and inserting 75,000,000 (based on fiscal year 2024 constant dollars); and
    - in subparagraph (B), by striking $540,000,000 (based on fiscal year 1990 constant dollars)and inserting inserting,300,000,000 (based on fiscal year 2024 constant dollars); and
  - in subsection (d)(1), by striking $750,000 (based on fiscal year 1980 constant dollars)and inserting $5,000,000 (based on fiscal year 2024 constant dollars).
(b) Use of procedures other than competitive procedures
- Section 3204(e)(1) of title 10, United States Code, is amended—
  - by striking each place it appears and inserting inserting00,000,000;
  - by striking each place it appears and inserting $500,000,000; and
  - in subparagraph (B)(i), by striking $500,000and inserting $5,000,000.
(c) Simplified procedures for small purchases
- Section 3205(a) of title 10, United States Code, is amended—
  - in paragraph (1), by striking simplified acquisition thresholdand inserting threshold specified in section 3571(a) of this title; and
  - in paragraph (2), by striking $5,000,000and inserting $50,000,000.
(d) Multiyear contracts
- Section 3501 of title 10, United States Code, is amended—
  - by striking each place it appears and inserting inserting,000,000,000;
  - by striking each place it appears and inserting inserting50,000,000; and
  - by striking each place it appears and inserting $50,000,000.
(e) Simplified acquisition threshold
- Section 3571(a) of title 10, United States Code, is amended—
  - by inserting before ;
  - by striking as specified in section 134 of title 41and inserting inserting0,000,000; and
    - In the case of any contract to be awarded and performed, or purchase to be made, in support of a contingency operation or a humanitarian or peacekeeping operation, the simplified acquisition threshold means an amount equal to two times the amount specified in paragraph (1).
  - by adding at the end the following new paragraph:
(f) Micro-Purchase threshold
- Section 3573 of title 10, United States Code, is amended by striking striking0,000and inserting inserting00,000.
(g) Modifications to submissions of cost or pricing data
- Section 3702(a) of title 10, United States Code, is amended—
  - in paragraph (1)—
    - by striking each place it appears and inserting June 30, 2026;
    - in subparagraph (A), by striking ,000,000and inserting inserting0,000,000; and
    - in subparagraph (B), by striking $750,000and inserting ,000,000;
  - in paragraph (2), by striking ,000,000and inserting inserting0,000,000; and
  - in subparagraph (3)(A), by striking ,000,000and inserting inserting0,000,000.
(h) Major defense acquisition programs; definitions; exceptions
- Section 4201(a)(2) of title 10, United States Code, is amended—
  - in subparagraph (A), by striking $300,000,000 (based on fiscal year 1990 constant dollars)and inserting inserting,000,000,000 (based on fiscal year 2024 constant dollars); and
  - in subparagraph (B), by striking striking,800,000,000 (based on fiscal year 1990 constant dollars)and inserting $5,500,000,000 (based on fiscal year 2024 constant dollars).

Sec. 304. Alternative capability-based pricing.

of title 10, United States Code, is amended by adding at the end the following new section: Chapter 287

(a) In general
- Except as provided by subsection (b), the head of an agency may use alternative capability-based analysis for the acquisition of a commercial solution to determine whether the price for a commercial solution is fair and reasonable based on the value to the Government as determined under such analysis.
(b) Exception
- Subsection (a) does not apply with respect to the acquisition of a commercial solution under a subcontract.
(c) Definitions
- In this section:
  - The term alternative capability-based analysis means an analysis of the value to the Government of a commercial solution that determines such value based on one or more of the following criteria:
  - The term commercial solution means a product or service, including an integrated combination of products, services, or products and services—

Sec. 305. Clarification of conditions for payments for commercial products and commercial services.

Section 3805 of title 10, United States Code, is amended—

in subsection (d)—
- by striking The conditionsand inserting (1) The conditions; and
  - For the purposes of section 3803 of this title, a payment for covered services acquired through a commercially utilized acquisition strategy shall not be considered an advance payment made under section 3801 of this title.
- by adding at the end the following new paragraph:
- (e) Definitions
  - In this section:
    - The term commercially utilized acquisition strategy means an acquisition of a service by the Government under terms and conditions that—
    - The term covered service means a commercial service that includes access to or use of any combination of hardware, equipment, software, labor, or services, including access to commercial satellite data and associated services, that is integrated to provide a capability.
by adding at the end the following new subsection:

Title IV—Strengthening the Defense Industrial Base and Leveraging Commercial Innovation

Sec. 401. Defense Industrial Resilience Consortium.

(a) Establishment
- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall establish a consortium (to be known as the ) to address challenges to and limitations of the industrial base to ensure that the Armed Forces are equipped with the capabilities necessary to effectively respond to national security challenges. Defense Industrial Resilience Consortium
(b) Membership
- Membership in the consortium established under subsection (a) shall be open to relevant entities and individuals from the Government, industry, and academia with an interest in advanced manufacturing or production technologies, fostering domestic industrial innovation, or enabling rapid, scalable solutions to sustain and enhance the availability of essential defense components.
(c) Purpose
- (1) In general
  - The consortium established under subsection (a) shall provide a forum for the Government, industry, and academia to collaborate on identifying and addressing challenges to and limitations of the industrial base in meeting the needs of the Department of Defense.
- (2) Areas of focus
  - In identifying and addressing challenges to and limitations of the industrial base, the consortium established under subsection (a) shall focus on—
    - eliminating impediments to a resilient and robust industrial base, including—
      - (i) policies and procedures that are impeding businesses of all types and sizes from working with the Department of Defense;
      - (ii) areas where the Department could improve implementation of the Federal Acquisition Streamlining Act of 1994 (), including limiting the application of requirements specific to the Government in the procurement of commercial products and commercial services, and maximizing the use of commercial standards rather than military specifications and standards; and Public Law 103–355
      - (iii) impediments to transitioning research, development, testing, and evaluation programs funded by military departments and the Department to relevant acquisition programs of record;
    - identifying and addressing supply chain fragility, including—
      - (i) preventing or mitigating parts obsolescence, and addressing the vulnerabilities from reliance on single sources for any material, product, or service while reducing the dependencies on nonallied nations;
      - (ii) developing long-term industrial base strategies and solutions to ensure the availability of mission-critical parts for systems of the Department throughout the life cycle of such systems; and
      - (iii) bolstering supply chain diversity and developing shared awareness of supply chain challenges, risks, and opportunities between Government and industry;
    - expanding domestic manufacturing and industrial capacity, including—
      - (i) enabling rapid engagement between government, academia, and industry to develop, test, and scale solutions that can revitalize domestic manufacturing capabilities, reduce reliance on single sources of supply, and strengthen the defense industrial base;
      - (ii) identifying financial incentives and business models to enable and support a civil reserve manufacturing network that could be activated to meet the needs of the Department of Defense;
      - (iii) supporting and informing efforts to enhance government-owned, government-operated arsenals and depots with advanced manufacturing and other production capabilities to enable rapid response across the spectrum of operational environments;
      - (iv) enabling and enhancing public-private partnerships between the organic industrial base, commercial manufacturing, and other industrial entities; and
      - (v) anticipate and close gaps in manufacturing capabilities for defense systems by fostering the adoption of additive manufacturing, automation, AI-driven production, and other emerging capabilities to modernize the industrial base and associated supply chains;
    - accessing and implementing commercial approaches to enabling modern manufacturing capabilities, including—
      - (i) adoption of commercial approaches to information technology, software, the cloud, data management, and artificial intelligence to support and enable modern manufacturing capabilities; and
      - (ii) identifying financial incentives and business models to encourage private-sector investment and expand access to advanced, high-quality advanced manufacturing, that uses software to digitize manufacturing to the greatest extent possible; and
    - development and training of the workforce, including—
      - (i) leveraging industry best practices training and development of critical skills in advanced manufacturing, including skills required to manufacture unique components and products for systems of the Department of Defense and to enable capabilities of the Department;
      - (ii) identifying or developing opportunities for public-private talent exchanges and skills development in areas such as advanced manufacturing, supply chain management, and supply chain risk management; and
      - (iii) identify or develop curriculum and experiential learning to support and enable advanced manufacturing, production technologies, or industrial innovation.
(d) Consortium work products and recommendations
- Relevant work products and recommendations developed through consortium activities shall be considered by the Secretary of Defense in developing policy and allocating resources to ensure that the Armed Forces are equipped with the capabilities necessary to effectively respond to national security challenges.
(e) Use of other transaction authorities
- The consortium established under subsection (a) shall support the use of other transaction authorities under sections 4021 and 4022 of title 10, United States Code, and other appropriate acquisition authorities, to rapidly prototype and field advanced manufacturing solutions and to address the other challenges to and limitations of the industrial base.

Sec. 402. Amendment to other transaction authority.

(a) In general
- Section 4022 of title 10, United States Code, is amended—
  - in subsection (a)(2)—
    - in subparagraph (A), by striking agency thatand all that follows through and inserting the use;
    - in subparagraph (B)(i), by striking writing thatand all that follows through and inserting the use; and
    - in subparagraph (C)—
      - (i) by striking each place it appears and inserting subsection (e); and
      - (ii) in clause (i)(I), by striking the requirements of subsection (d)and all that follows through and inserting and the;
  - by striking subsection (d);
  - by redesignating subsections (e) through (i) as subsections (d) through (h), respectively; and
  - in subsection (f), as so redesignated, by striking subsection (f)and inserting subsection (e).
(b) Conforming amendments
- (1) National Security Act of 1947
  - Section 102A(n)(6)(C) of the National Security Act of 1947 () is amended— 50 U.S.C. 3024(n)(6)(C)
    - by repealing clauses (v) and (vi); and
    - in clause (vii)—
      - (i) in the matter preceding subclause (I), by striking 4022(f)(2)and inserting 4022(e)(2); and
      - (ii) in subclause (V)(cc), by striking 4022(f)(5)and inserting 4022(e)(5).
- (2) Homeland Security Act of 2002
  - Section 831(d) of the Homeland Security Act of 2002 () is amended by striking 4022(e)and inserting 4022(d). 6 U.S.C. 391(d)
- (3) John S. McCain National Defense Authorization Act for Fiscal Year 2019
  - Section 873(c)(1) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (; note) is amended— Public Law 115–232; 10 U.S.C. 4021
    - in subparagraph (A), by striking subsection (f)and inserting subsection (e); and
    - in subparagraph (E), by striking or (f)and inserting or (e).
- (4) James M. Inhofe National Defense Authorization Act for Fiscal Year 2023
  - Section 322(h)(2) of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (; note) is amended by striking subsection (f)and inserting subsection (e). Public Law 117–263; 10 U.S.C. 2911

Sec. 403. Data-as-a-service solutions for weapon system contracts.

(a) In general
- of title 10, United States Code, as amended by section 105 of this Act, is amended by adding at the end the following new section: Chapter 323
  - (a) Negotiations for data-as-a-Service
    - Before entering into a contract for the procurement of a weapon system (or component thereof), the Secretary of Defense shall ensure, to the maximum extent practicable, that the negotiations for such contract include negotiations for data-as-a-service solutions to facilitate access to the information described in subsection (b) as necessary for—
      - the performance of depot-level maintenance and repair workload by employees of the Department of Defense in accordance with section 2466 of this title; or
      - the maintenance of a core logistics capability in accordance with section 2464 of this title.
  - (b) Covered Information
    - The information described in subsection (a) is technical data or computer software that relates to the weapon system (or component thereof) to be procured that is—
      - detailed manufacturing or process data relating to how contractors or subcontractors design, develop, produce, test, certify, diagnose, maintain, repair, or otherwise support such weapon system (or component thereof);
      - digital networks or digital models that contain data described in paragraph (1), or virtual replicas of such data;
      - design details, algorithms, processes, flow charts, formulas, and related information that describe the design, organization, or structure of computer software; or
      - necessary for operation, maintenance, installation, or training with respect to such weapon system (or component thereof).
  - (c) Methods and Schedule for Access
    - With respect to a data-as-a-service solution described in subsection (a), access to the information described in subsection (b) may be made available through one or more methods, including electronically, in-person, or machine-to-machine encryption, as appropriate based on the type, sensitivity, or authorized use of such information.
    - The Secretary of Defense shall ensure that the terms of a contract for a data-as-a-service solution described in subsection (a) clearly state the requirements, conditions, and schedule for providing access to the information described in subsection (b).
  - (d) Applicability to commercial products
    - With respect to a contract for a commercial product that is a data-as-a-service solution described in subsection (a), the offeror for such commercial product shall ensure that the pricing and terms and conditions of access to information described in subsection (b) for such commercial product is commensurate with commercial practices for similar access.
    - The Secretary of Defense may not require an offeror for a commercial product that is a data-as-a-service solution described in subsection (a) to provide access to information described in subsection (b) in a manner that is different from what such offeror customarily provides to a buyer of such commercial product, unless the offeror has agreed to provide such access pursuant to a specifically negotiated agreement with the Secretary.
  - (e) Rule of construction
    - Nothing in this section shall be construed as modifying any rights, obligations, or limitations of the Government, contractor, or subcontractor with respect to rights in technical data under subchapter I of chapter 275 of this title.
  - (f) Definitions
    - In this section:
      - The term , with respect to information described in subsection (b), means the availability of such information as a service rather than as specifically delivered in the performance of a contract for the procurement of a weapon system (or component thereof). access
      - The term data-as-a-service means a model under which the Secretary is provided access to the most up-to-date information described in subsection (b) that relates to a weapon system (or component thereof) to be procured by the Secretary, including any associated license agreements for such information.
      - The term technical data has the meaning given in section 3013 of this title.
(b) Guidance required
- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance to carry out the requirements of section 4324 of title 10, United States Code, as added by this section.
(c) Applicability
- Section 4324 of title 10, United States Code, as added by this section, shall apply with respect to a contract for the procurement of a weapon system (or component thereof) entered into on or after the date of the enactment of this Act.

Sec. 404. Requirements for modular open system approach and modifications to rights in technical data.

(a) Requirements for modular open system approach
- (a) Requirement
  - The Secretary of Defense shall ensure that a covered system to be procured is designed and developed, to the maximum extent practicable, with a modular open system approach.
- (b) Assessment To inform strategy
  - Before designing or developing a covered system, the Secretary of Defense shall conduct an assessment to identify the open systems objectives to be achieved by the design and development of the covered system. Such assessment shall identify and document how such approach would—
    - support the objectives of the defense acquisition system established pursuant to section 3102 of this title;
    - align with the preference for the acquisition of commercial products in section 3453 of this title to retain, to the maximum extent practicable, the commercial viability of subsystems and components of the covered system;
    - reduce the complexity and increase the speed by which new technology can be integrated into a covered system to enhance miliary effectiveness and responsiveness to emerging threats;
    - enable the use of iterative development cycles and discontinue or terminate the development of capabilities—
      - that no longer align with approved capability requirements (as defined in section 181 of this title) or priorities; or
      - that are experiencing significant cost growth, performance deficiencies, or delays in schedule;
    - promote a robust and responsive defense industrial base, and foster competition amongst offerors of subsystems and components of the covered system through the life cycle of the covered system, especially at the module level;
    - reduce schedule delays and development timelines;
    - increase and enable interoperability of a covered system with the joint force as changes to force design evolve; and
    - enable effective life-cycle management and product support of a covered system—
      - in accordance with the requirements of section 4322 of this title; and
      - to ensure that the covered system will meet applicable operational readiness requirements (as defined in such section 4322) and materiel readiness objectives (established under section 118(c) of this title) in the most cost-effective manner practicable.
- (c) Architecture requirements
  - In developing an architecture for the procurement of a covered system using a modular open system approach, the Secretary shall ensure that the architecture—
    - adequately designates and defines modules, module interfaces, key interfaces, and openness characteristics of the covered system necessary to achieve the open systems objectives described in subsection (b);
    - to the extent practicable, is based on—
      - (i) widely accepted, consensus-based standards that are available at no cost or under fair and reasonable license terms; or
      - (ii) if such standards are not available or suitable, incremental standards that define relationships between module interfaces and key interfaces; and
    - is designed and developed to accelerate the procurement and integration of commercial products as modules, module interfaces, and key interfaces.
  - The Secretary shall consider input from private entities as early as possible to inform decisions regarding the level in the architecture at which a modular open system approach will be implemented for a covered system.
  - The architecture described in this subsection shall be included in any draft and final solicitations for procurement of a covered system.
- (d) Openness Characteristics
  - Consistent with the requirements of subchapter I of chapter 275 of this title, the Secretary shall include in the solicitation for the covered system a description of the desired openness characteristics of the covered system necessary to achieve the open systems objectives described in subsection (b), including the following:
    - The open systems objectives identified as result of the assessment required by subsection (b).
    - A description of the application of specifications or standards for module interfaces to achieve such objectives.
    - A description of the minimum technical data package elements necessary to achieve such objectives.
    - The desired license rights in module interfaces or key interfaces based on such objectives, including desired license rights to enable the replacement of a module or module interface with an alternative or new module or module interface.
- (e) Applicability to commercial products
  - In applying the requirements of this section to a covered system that includes a commercial product, the Secretary of Defense shall—
    - implement modular open system approaches in accordance with such approaches used in the ordinary course of business for such commercial product on the commercial marketplace;
    - for a commercial product that is commercial technical data or commercial software, procure such commercial product under license terms similar to such terms that are customarily provided to the public, unless the Secretary has specifically negotiated different license terms;
    - when applicable, obtain the delivery of commercial software development kits with license rights necessary to support the desired openness characteristics for the covered system; and
    - to the maximum extent practical, conduct negotiations for desired license rights in accordance with the preference for specially negotiated licenses in section 3774(c) of this title.
- (f) Definitions
  - In this section:
    - The term covered system means a system acquired or developed under—
    - The term incremental standard means a specification for a module interface or key interface that includes—
    - The term key interface means a shared boundary between any system, subsystem of a covered system, or set of modules, defined by various physical, logical, functional characteristics, such as electrical, mechanical, fluidic, optical, radio frequency, data, networking, or software.
    - The term modular open system approach means the application of a strategy that leverages an architecture that enables modules to be incrementally added, removed, or replaced throughout the life cycle of the covered system to achieve a set of objectives.
    - The term module means a self-contained functional hardware or software unit—
    - The term module interface means a shared boundary between modules, defined by physical, logical, and functional characteristics, such as electrical, mechanical, fluidic, optical, radio frequency, data, networking, or software.
    - The term software development kit means a collection of software tools and programs such as libraries, application programming interfaces, integrated development environments, testing tools, or documentation used to create applications that are appropriate for a specific software platform.
- Section 4401 of title 10, United States Code, is amended to read as follows:
(b) Guidance
- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance to carry out the requirements of section 4401 of title 10, United States Code, as amended by this section.
(c) Applicability
- The requirements of section 4401 of title 10, United States Code, as amended by this section, shall apply with respect to a contract entered into on or after the date of the enactment of this Act.
(d) Modification to rights in technical data
- (1) Rights in technical data
  - Section 3771 of title 10, United States Code, is amended—
    - in subsection (a)—
      - (i) in paragraph (2)(A), by striking or copyrightsand inserting , copyrights, trade secrets,; and
      - (ii) by adding at the end the following new paragraph:
        
        (3) Enforcement of certain rights
        
        Regulations prescribed under paragraph (1) may not affect or limit any right described in paragraph (2)(A) or the ability of a contractor or subcontractor to enforce such a right against a third party that has not otherwise obtained a license for such a right from the United States or from the contractor or subcontractor.
    - in subsection (b)—
      - (i) in paragraph (2), by striking paragraphs (3), (4), and (7),and inserting paragraphs (3) and (4),;
      - (ii) by amending paragraph (3) to read as follows:
        
        (3) Inapplicability of paragraph (2)
        
        Unless otherwise negotiated, paragraph (2) does not apply to technical data that—
        
        constitutes a correction or change to data furnished by the United States; or
        
        is otherwise publicly available or has been released or disclosed by the contractor or subcontractor without restriction on further release or disclosure.
      - (iii) by amending paragraph (4) to read as follows:
        
        (4) Exceptions to paragraph (2)
        
        Notwithstanding paragraph (2), unless otherwise negotiated, the United States shall have government purpose rights, in perpetuity, in technical data that—
        
        (i) relates to form, fit, or function of an item or process; or
        
        (ii) is necessary for operation, maintenance, installation, or training (other than detailed manufacturing or process data) of an item or process.
        
        Notwithstanding paragraph (2), the United States may release or disclose technical data to persons outside the Government, or permit the use of technical data by such persons, if such release, disclosure, or use—
        
        (i) is necessary for emergency repair and overhaul;
        
        (ii) is a release or disclosure of technical data (other than detailed manufacturing or process data) to, or use of such data by, a foreign government, where such release or disclosure is in the interest of the United States and is required for evaluation or informational purposes;
        
        (iii) is made subject to a prohibition that the person to whom the data are released or disclosed may not further release, disclose, or use such data; and
        
        (iv) the contractor or subcontractor asserting the restriction is notified of such release, disclosure, or use.
      - (iv) in paragraph (6)—
      - in the paragraph heading, by striking and inserting ;
      - by inserting after ; and
      - by striking an interface between an item or process and other items or processesand inserting a module interface of an item; and
      - (v) in paragraph (7)—
      - in the paragraph heading, by striking and inserting ;
      - in subparagraph (A)—
      - by striking paragraphs (2) and (5)and inserting paragraph (5) and except as otherwise provided by subsection (e) of section 4401 of this title,;
      - by inserting after ; and
      - by striking modular system interfaceand inserting key interface of an item;
      - in subparagraph (B), by striking modular system interfaceand inserting a key interface; and
      - in subparagraph (C), by striking modular system interfaceand inserting key interface of an item.
- (2) Definitions
  - (b) Additional definitions
    - In this subchapter, the terms , , and have the meanings given, respectively, in section 4401 of this title. key interface,modular open system approach,module interface
  - Section 3775(b) of title 10, United States Code, is amended to read as follows:
(e) Conforming amendments
- Section 3791(c)(1) of title 10, United States Code, is amended—
  - in subparagraph (A), by striking section 4401(b) of this titleand inserting section 4401 of this title; and
  - in subparagraph (D)(iv), by striking modular system interfaces (as defined in section 4401(b) of this title)and inserting module interfaces (as defined in section 4401(f) of this title).
- Section 4402 of title 10, United States Code, is repealed.
- Section 4403 of title 10, United States Code, is repealed.
- Section 4425 of title 10, United States Code, is amended to read as follows:
  - In this subchapter:
    - The term major system platform means the highest level structure of a major weapon system that is not physically mounted or installed onto a higher level structure and on which a major system component can be physically mounted or installed.
    - The term — weapon system component
- Section 804 of the National Defense Authorization Act for Fiscal Year 2021 ( note) is repealed. 10 U.S.C. 4401

Sec. 405. Qualification, acceptance, and supply chain management of products manufactured using advanced manufacturing.

(a) In general
- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall establish in the Defense Industrial Resilience Consortium established under section 401 of this Act a working group to develop recommendations for improving the policies and procedures of the Department of Defense for the qualification, acceptance, and management of the supply chains of products manufactured using advanced manufacturing.
(b) Membership
- The membership of the working group shall include representatives from government, industry, and academia with expertise in advanced manufacturing, engineering, the procedures of the Department of Defense for qualifying and accepting products, supply chain management, or commercial best practices and business models for advanced manufacturing.
(c) Responsibilities
- The working group shall—
  - review the policies and procedures of the Department of Defense to identity policies and procedures for the qualification, acceptance, and management of the supply chains of products that are insufficient for or not applicable to products manufactured using advanced manufacturing;
  - identify any changes to the policies and procedures of the Department required for the Department to benefit fully from access to and use of products manufactured using advanced manufacturing; and
  - develop recommendations for—
    - technical guidance with respect to the qualification, acceptance, and management of the supply chains of products manufactured using advanced manufacturing;
    - policies and procedures for the qualification, acceptance, and management of the supply chains of such products;
    - changes to any other policies and procedures of the Department identified under paragraph (2); and
    - training to enhance the knowledge and experience of the workforce of the Department of Defense with advanced manufacturing, including the benefits, limitations, and commercial best practices and business models for designing, developing, and using products manufactured using advanced manufacturing.
(d) Report
- Not later than 1 year after the date of enactment, the Secretary of Defense shall submit to Congress—
  - a report on the recommendations developed by the working group under subsection (c)(3) and the actions taken by the Secretary to better enable to the Department of Defense to access and use products manufactured using advanced manufacturing; and
  - a recommendation whether to continue or terminate the working group.
(e) Working group defined
- In this section, the term working group means the working group established under subsection (a).

Sec. 406. Amendments to the procurement technical assistance program.

of title 10, United States Code, is amended— Chapter 388

in section 4952—
- by redesignating paragraphs (1) and (2) as paragraphs (2) and (3);
  - to support the growth and resiliency of the industrial base by accelerating innovation, fostering ingenuity of business entities, and establishing resilient supply chains;
- by inserting before paragraph (2), as so redesignated, the following new paragraph:
- in paragraph (2), as so redesignated, by striking and at the end;
- in paragraph (3), as so redesignated, by striking the period at the end and inserting ; and; and
  - to mitigate costs of entry for business entities that improve the technology capabilities of the Department of Defense.
- by inserting after paragraph (3) the following new paragraph:
in section 4961—
- in paragraph (1), by striking and at the end;
- in paragraph (2)(B), by striking the period at the end and inserting ; and; and
  - an amount determined appropriate by the Secretary to establish one or more centers of excellence to provide to individuals or eligible entities that provide procurement technical assistance pursuant to this chapter training necessary to fulfill the purpose of the program under section 4952 of this title.
- by adding at the end the following new paragraph:

Sec. 407. Report on surge capacity in the defense industrial base.

(a) Report required
- Not later than March 1, 2026, the Assistant Secretary of Defense for Industrial Base Policy and the Director of Defense Pricing, Contracting, and Acquisition Policy shall jointly submit to the congressional defense committees a report on efforts to identify and address regulations or policies that discourage or prevent contractors of the Department of Defense from maintaining or investing in surge capacity.
(b) Elements
- The report required subsection (a) shall include the following:
  - A discussion of any efforts by United States DOGE Service (commonly referred to as the or ), acting in coordination with the Office of the Secretary of Defense, to review and address the barriers described in subsection (a)(1). Department of Government Efficiency
  - An identification of policies that incentivize contractors to reduce or eliminate surge capacity, including section 31.205–17 of the Federal Acquisition Regulation (relating to idle facilities and idle capacity costs).
  - Any steps taken by the Secretary of Defense to address regulatory barriers disincentivizing surge capacity within the defense industrial base as part of the implementation of Executive Order 14265 titled (90 Fed. Reg. 15621; April 15, 2025). Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base
(c) Surge capacity defined
- In this section, the term surge capacity means the ability of contractors in the defense industrial base to rapidly increase production capacity to meet increased demand for defense articles and defense services (as such terms are defined, respectively, in section 301 of title 10, United States Code).

Sec. 408. Bridging Operational Objectives and Support for Transition program.

(a) Bridging Operational Objectives and Support for Transition program
- (1) Establishment
  - In meeting the responsibilities of the Defense Innovation Unit under section 4127(d) of title 10, United States Code, the Director of the Defense Innovation Unit shall establish a program (to be known as the ) to accelerate the adoption or integration of commercial technologies into programs of record of the Department of Defense. Bridging Operational Objectives and Support for Transition program
- (2) Program execution
  - Not later than 90 days after the date of the enactment of this subsection, the Director shall issue guidance on the BOOST program, including guidance to do the following:
    - Enable a customer seeking a technology solution for a challenge or requirement in a program of record of the Department of Defense to request assistance under the BOOST program with identifying and adopting or integrating such a solution into such program.
    - Establish requirements for the Defense Innovation Unit to—
      - (i) conduct a review of commercial technologies pursuant to a request described in subparagraph (A) with respect to a challenge or requirement of a program of record of the Department to identify commercial technology that may address such challenge or requirement;
      - (ii) provide to the customer that made such request the findings of such review, including any commercial technologies so identified; and
      - (iii) at the request of such customer after providing such findings to such customer, conduct development, experimentation, or integration activities in coordination with such customer to support or enable the adoption or integration of any commercial technology so identified into such program of record.
    - Establish criteria for terminating assistance under the BOOST program for a customer or with respect to a commercial technology.
- (3) Support to other programs
  - The Director shall ensure the BOOST program works with and in support of—
    - the program established under section 4061(a) of title 10, United States Code;
    - other organizations of the Department of Defense responsible for accelerating the adoption and integration of technology in systems or programs of the Department;
    - the Small Business Innovation Research Program;
    - the Small Business Technology Transfer Program; and
    - the Joint Rapid Acquisition Cell (as described in the Department of Defense Directive 5000.71 titled (August 24, 2012)). Rapid Fulfillment of Combatant Commander Urgent Operational Needs
- (4) Funding
  - Subject to the availability of appropriations, amounts authorized to be appropriated the Defense Innovation Unit for research, development, test, and evaluation for a fiscal year may be used for such fiscal year to carry out the BOOST program.
- (5) Sunset
  - The authorities and requirements under this subsection shall expire on December 31, 2030.
(b) Reporting
- Not later than two years after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Under Secretary of Defense for Acquisition and Sustainment and the Director, shall submit to the congressional defense committees a report on the effectiveness of the BOOST program in accelerating the adoption or integration of commercial technologies into programs of record of the Department of Defense, including—
  - a summary description of customers and technologies adopted or integrated into such programs of record based on assistance provided under the BOOST program;
  - recommendations of the Secretary to improve the BOOST program; and
  - a recommendation whether to continue or terminate the BOOST program.
(c) Definitions
- In this section:
  - The term BOOST program means the program established under subsection (a)(1).
  - The term customer means a program manager or program executive officer of the Department of Defense that has primary responsibility for fielding the system or systems acquired.
  - The term Director means the Director of the Defense Innovation Unit.
  - The term program executive officer has the meaning given such term in section 1737(a) of title 10, United States Code.
  - The terms and have the meanings given such terms, respectively, in section 9(e) of the Small Business Act (). Small Business Innovation Research Program,Small Business Technology Transfer Program 15 U.S.C. 638(e)

Title V—Developing a Mission-Oriented Defense Acquisition Workforce

Sec. 501. Report on strengthening the Defense Acquisition University.

(a) Assessment required
- The Secretary of Defense, acting through the Director of the Acquisition Innovation Research Center, shall conduct a comprehensive assessment of the Defense Acquisition University (in this section referred to as ) to strengthen the ability of the DAU to train and develop members of the acquisition workforce to meet future needs of the Department of Defense. The assessment shall include the following:
  - An evaluation of the mission of the DAU and the alignment of such mission with the objectives of the defense acquisition system established pursuant to section 3102 of title 10, United States Code (as added by section 101 of this Act).
  - An evaluation of the effectiveness of training and development provided by DAU to members of the acquisition workforce to enable such members to effectively implement the objectives of the defense acquisition system.
(b) Elements
- The assessment in paragraph (1) shall evaluate the following:
  - The organization and structure of DAU.
  - The curriculum and educational offerings of DAU.
  - The composition of the staff and faculty of DAU, including an assessment of the diversity of skills, abilities, and professional backgrounds of such staff and faculty.
  - The sufficiency of resource and funding mechanisms supporting DAU operations.
  - The extent to which DAU uses external experts and academic institutions to inform and enhance its programs.
(c) Recommendations
- The Director of the Acquisition Innovation Research Center shall use the assessment required under this section and the objectives of the defense acquisition system to provide to the Secretary of Defense recommendations to strengthen the ability of the DAU to train and develop members of the acquisition workforce to meet future needs of the Department of Defense.
(d) Report to congress
- 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 containing—
  - the findings of the assessment conducted under subsection (a) and the recommendations provided under subsection (c); and
  - any actions necessary to ensure that DAU fulfills its mission and provides training and development to members of the acquisition workforce that aligns with the objectives of the defense acquisition system.
(e) Definitions
- In this section:
  - The term Acquisition Innovation Research Center means the acquisition research organization within a civilian college or university that is described under section 4142(a) of title 10, United States Code.
  - The term acquisition workforce has the meaning given in section 101 of title 10, United States Code.

Sec. 502. Comptroller General review of the management, training, and development of the acquisition workforce.

(a) In general
- The Comptroller General of the United States shall conduct a review of the management, training, and development of the acquisition workforce to enable the acquisition workforce to expeditiously provide the Armed Forces with the capabilities necessary to operate effectively, to address evolving threats, and to maintain the military advantage of the United States in the most cost-effective manner practicable.
(b) Review contents
- In conducting the review required by subsection (a), the Comptroller General shall evaluate the following:
  - The current organization and staffing of the acquisition workforce, including the total number of positions in the acquisition workforce, a list of such positions disaggregated by the skills and experience required, and the number of such positions that are vacant or are filled by an individual whose skills and experience do not meet the required skills and experience for such position.
  - The sufficiency of the processes and authorities of the Department of Defense for recruiting and retaining the acquisition workforce, and the use of such authorities to maintain an acquisition workforce that is optimized to meet mission requirements.
  - Trends in acquisition workforce hiring and retention over the preceding five years.
  - The impediments to members of the acquisition workforce receiving training and education, including any lack of funding, unavailability of required or desired training, and excessive workload demands that preclude such members from being able to attend such training.
(c) Report
- Not later than April 1, 2026, the Comptroller General shall submit to the congressional defense committees a report on the findings of the review required by subsection (a), including any recommendations to improve the management, training, and development of the acquisition workforce.
(d) Acquisition workforce defined
- In this section, the term acquisition workforce has the meaning given such term in section 101(a) of title 10, United States Code.

Sec. 503. Comptroller General review of matters relating to individuals assigned to a critical acquisition position.

(a) Review required
- The Comptroller General of the United States shall—
  - conduct a review of the education, training, and career development programs offered by the Secretary of Defense for members of the acquisition workforce; and
  - conduct an assessment of the efficacy of the career development policies established by section 1734 of title 10, United States Code.
(b) Matters for review
- In conducting the review required by this section, the Comptroller General shall—
  - review the compliance of the Secretary with the requirements of section 1734 of title 10, United States Code;
  - conduct an assessment of the efficacy of the career development policies and minimum periods of assignment established by such section 1734 in—
    - improving the ability of the acquisition workforce to expeditiously provide the Armed Forces with the capabilities necessary to operate effectively, to address evolving threats, and to maintain the military advantage of the United States in the most cost-effective manner practicable;
    - enhancing the knowledge and experience of the acquisition workforce;
    - enabling competitive career progression of members of the acquisition workforce compared to other members of the civilian and military workforce of the Department of Defense that are not subject to the minimum periods of assignment established by such section 1734; and
    - the retention rates of members of the acquisition workforce assigned to a critical acquisition position, particularly key leadership positions (as defined by the Under Secretary of Defense for Acquisition and Sustainment), compared with the retention rates for other members of the civilian and military workforce of the Department of Defense that are not subject to the minimum periods of assignment established by such section 1734; and
  - conduct an assessment of any benefits, including enhanced accountability in leadership and decisionmaking by individuals in key leadership positions, of a minimum period of assignment of at least four years to a critical acquisition position.
(c) Report required
- Not later than July 1, 2026, the Comptroller General shall submit to the congressional defense committees recommendations on—
  - improvements to education, training, and career development programs offered by the Secretary of Defense for members of the acquisition workforce; and
  - minimum periods of assignment for an individual assigned as a program executive officer.