Title 10 — Armed Forces
Part V · Chapter 249 — Multiyear Contracts
§ 3501. Multiyear contracts: acquisition of property
Statutory text
In General.—
To the extent that funds are otherwise available for obligation, the head of an agency may enter into multiyear contracts for the purchase of property whenever the head of that agency finds each of the following:
That the use of such a contract will result in—
savings of the total anticipated costs of carrying out the program through annual contracts; or
necessary defense industrial base stability not otherwise achievable through annual contracts.
That the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities.
That there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation.
That there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive.
That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic.
In the case of a purchase by the Department of Defense, that the use of such a contract will promote the national security of the United States.
In the case of a contract in an amount equal to or greater than $500,000,000, that the conditions required by subparagraphs (C) through (F) of subsection (i)(3) will be met, in accordance with the Secretary’s certification and determination under such subsection, by such contract.
Regulations.—
Each official named in paragraph (2) shall prescribe acquisition regulations for the agency or agencies under the jurisdiction of such official to promote the use of multiyear contracting as authorized by subsection (a) in a manner that will allow the most efficient use of multiyear contracting.
The Secretary of Defense shall prescribe the regulations applicable to the Department of Defense.
The Secretary of Homeland Security shall prescribe the regulations applicable to the Coast Guard, except that the regulations prescribed by the Secretary of Defense shall apply to the Coast Guard when it is operating as a service in the Navy.
The Administrator of the National Aeronautics and Space Administration shall prescribe the regulations applicable to the National Aeronautics and Space Administration.
Contract Cancellations.—
The regulations may provide for cancellation provisions in multiyear contracts to the extent that such provisions are necessary and in the best interests of the United States. The cancellation provisions may include consideration of both recurring and nonrecurring costs of the contractor associated with the production of the items to be delivered under the contract.
Participation by Subcontractors, Vendors, and Suppliers.—
In order to broaden the defense industrial base, the regulations shall provide that, to the extent practicable—
multiyear contracting under subsection (a) shall be used in such a manner as to seek, retain, and promote the use under such contracts of companies that are subcontractors, vendors, or suppliers; and
upon accrual of any payment or other benefit under such a multiyear contract to any subcontractor, vendor, or supplier company participating in such contract, such payment or benefit shall be delivered to such company in the most expeditious manner practicable.
Protection of Existing Authority.—
The regulations shall provide that, to the extent practicable, the administration of this section, and of the regulations prescribed under this section, shall not be carried out in a manner to preclude or curtail the existing ability of an agency—
to provide for competition in the production of items to be delivered under such a contract; or
to provide for termination of a prime contract the performance of which is deficient with respect to cost, quality, or schedule.
Cancellation or Termination for Insufficient Funding.—
In the event funds are not made available for the continuation of a contract made under this section into a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid from—
appropriations originally available for the performance of the contract concerned;
appropriations currently available for procurement of the type of property concerned, and not otherwise obligated; or
funds appropriated for those payments.
Contract Cancellation Ceilings Exceeding $100,000,000.—
Before any contract described in subsection (a) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the head of the agency concerned shall give written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the congressional defense committees, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification.
In the case of a contract described in subsection (a) with a cancellation ceiling described in paragraph (1), if the budget for the contract does not include proposed funding for the costs of contract cancellation up to the cancellation ceiling established in the contract, the head of the agency concerned shall, as part of the certification required by subsection (i)(1)(A),1 give written notification to the congressional defense committees of—
the cancellation ceiling amounts planned for each program year in the proposed multiyear procurement contract, together with the reasons for the amounts planned;
the extent to which costs of contract cancellation are not included in the budget for the contract; and
a financial risk assessment of not including budgeting for costs of contract cancellation.
Defense Acquisitions of Weapon Systems.—
In the case of the Department of Defense, the authority under subsection (a) includes authority to enter into the following multiyear contracts in accordance with this section:
A multiyear contract for the purchase of a weapon system, items and services associated with a weapon system, and logistics support for a weapon system.
A multiyear contract for advance procurement of components, parts, and materials necessary to the manufacture of a weapon system, including a multiyear contract for such advance procurement that is entered into in order to achieve economic-lot purchases and more efficient production rates.
Defense Acquisitions Specifically Authorized by Law.—
In the case of the Department of Defense, a multiyear contract in an amount equal to or greater than $500,000,000 may not be entered into under this section unless the contract is specifically authorized by law in an Act other than an appropriations Act.
In submitting a request for a specific authorization by law to carry out a defense acquisition program using multiyear contract authority under this section, the Secretary of Defense shall include in the request a report containing preliminary findings of the agency head required in paragraphs (1) through (6) of subsection (a), together with the basis for such findings.
A multiyear contract may not be entered into under this section for a defense acquisition program that has been specifically authorized by law to be carried out using multiyear contract authority unless the Secretary of Defense certifies in writing, not later than 30 days before entry into the contract, that each of the following conditions is satisfied:
The Secretary has determined that each of the requirements in paragraphs (1) through (6) of subsection (a) will be met by such contract and has provided the basis for such determination to the congressional defense committees.
The Secretary’s determination under subparagraph (A) was made after completion of a cost analysis conducted on the basis of section 3226(b) of this title, and the analysis supports the determination.
The system being acquired pursuant to such contract has not been determined to have experienced cost growth in excess of the critical cost growth threshold pursuant to section 4374 of this title within 5 years prior to the date the Secretary anticipates such contract (or a contract for advance procurement entered into consistent with the authorization for such contract) will be awarded.
A sufficient number of end items of the system being acquired under such contract have been delivered at or within the most current estimates of the program acquisition unit cost or procurement unit cost for such system to determine that current estimates of such unit costs are realistic.
During the fiscal year in which such contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program for such fiscal year will include the funding required to execute the program without cancellation.
The contract is a fixed price type contract.
The proposed multiyear contract provides for production at not less than minimum economic rates given the existing tooling and facilities.
If for any fiscal year a multiyear contract to be entered into under this section is authorized by law for a particular procurement program and that authorization is subject to certain conditions established by law (including a condition as to cost savings to be achieved under the multiyear contract in comparison to specified other contracts) and if it appears (after negotiations with contractors) that such savings cannot be achieved, but that significant savings could nevertheless be achieved through the use of a multiyear contract rather than specified other contracts, the President may submit to Congress a request for relief from the specified cost savings that must be achieved through multiyear contracting for that program. Any such request by the President shall include details about the request for a multiyear contract, including details about the negotiated contract terms and conditions.
The Secretary may obligate funds for procurement of an end item under a multiyear contract for the purchase of property only for procurement of a complete and usable end item.
The Secretary may obligate funds appropriated for any fiscal year for advance procurement under a contract for the purchase of property only for the procurement of those long-lead items necessary in order to meet a planned delivery schedule for complete major end items that are programmed under the contract to be acquired with funds appropriated for a subsequent fiscal year (including an economic order quantity of such long-lead items when authorized by law).
The Secretary may make the certification under paragraph (3) notwithstanding the fact that one or more of the conditions of such certification are not met, if the Secretary determines that, due to exceptional circumstances, proceeding with a multiyear contract under this section is in the best interest of the Department of Defense and the Secretary provides the basis for such determination with the certification.
The Secretary may not delegate the authority to make the certification under paragraph (3) or the determination under paragraph (6) to an official below the level of Under Secretary of Defense for Acquisition and Sustainment.
Defense Contract Options for Varying Quantities.—
The Secretary of Defense may instruct the Secretary of the military department concerned to incorporate into a proposed multiyear contract negotiated priced options for varying the quantities of end items to be procured over the period of the contract.
Multiyear Contract Defined.—
For the purposes of this section, a multiyear contract is a contract for the purchase of property for more than one, but not more than five, program years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made.
Various Additional Requirements With Respect to Multiyear Defense Contracts.—
The head of an agency may not initiate a contract described in subparagraph (B) unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract.
Subparagraph (A) applies to the following contracts:
A multiyear contract—
that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract; or
that includes an unfunded contingent liability in excess of $20,000,000.
Any contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year.
The head of an agency may not initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability.
The head of an agency may not initiate a multiyear procurement contract for any system (or component thereof) if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided in an appropriations Act.
Each report required by paragraph (5) with respect to a contract (or contract extension) shall contain the following:
The amount of total obligational authority under the contract (or contract extension) and the percentage that such amount represents of—
the applicable procurement account; and
the agency procurement total.
The amount of total obligational authority under all multiyear procurements of the agency concerned (determined without regard to the amount of the multiyear contract (or contract extension)) under multiyear contracts in effect at the time the report is submitted and the percentage that such amount represents of—
the applicable procurement account; and
the agency procurement total.
The amount equal to the sum of the amounts under subparagraphs (A) and (B), and the percentage that such amount represents of—
the applicable procurement account; and
the agency procurement total.
The amount of total obligational authority under all Department of Defense multiyear procurements (determined without regard to the amount of the multiyear contract (or contract extension)), including any multiyear contract (or contract extension) that has been authorized by the Congress but not yet entered into, and the percentage that such amount represents of the procurement accounts of the Department of Defense treated in the aggregate.
The head of an agency may not enter into a multiyear contract (or extend an existing multiyear contract), the value of which would exceed $500,000,000 (when entered into or when extended, as the case may be), until the Secretary of Defense submits to the congressional defense committees a report containing the information described in paragraph (4) with respect to the contract (or contract extension).
The head of an agency may not terminate a multiyear procurement contract until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees.
The execution of multiyear contracting authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.
This subsection does not apply to the National Aeronautics and Space Administration or to the Coast Guard.
In this subsection:
The term “applicable procurement account” means, with respect to a multiyear procurement contract (or contract extension), the appropriation account from which payments to execute the contract will be made.
The term “agency procurement total” means the procurement accounts of the agency entering into a multiyear procurement contract (or contract extension) treated in the aggregate.
Increased Funding and Reprogramming Requests.—
Any request for increased funding for the procurement of a major system under a multiyear contract authorized under this section shall be accompanied by an explanation of how the request for increased funding affects the determinations made by the Secretary under subsection (i).
Footnotes
- 1 See References in Text note below.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 div. A title XVIII · 134 Stat. 3388
Enacted · 10 U.S.C. § 3501
Added and amended Pub. L. 116–283, div. A, title XVIII, §§ 1822(a), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4197, 4294
Source evidence
Code source credit
Added and amended Pub. L. 116–283, div. A, title XVIII, §§ 1822(a), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4197, 4294Enacted provision · exact public law
TITLE XVIII— TRANSFER AND REORGANIZATION OF DEFENSE ACQUISITION STATUTES TITLE XVIII— TRANSFER AND REORGANIZATION OF DEFENSE ACQUISITION STATUTES Sec. 1801. Transfer and reorganization of defense acquisition statutes. Subtitle A— Definitions Sec. 1806. Definitions. Sec. 1807. General matters. Sec. 1808. Defense acquisition system. Sec. 1809. Budgeting and appropriations. Sec. 1810. Operational contract support. Subtitle B— Acquisition Planning Sec. 1811. Planning and solicitation generally. Sec. 1812. Independent cost estimation and cost analysis. Sec. 1813. Other provisions relating to planning and solicitation generally. Subtitle C— Contracting Methods and Contract Types Sec. 1816. Awarding of contracts. Sec. 1817. Specific types of contracts. Sec. 1818. Other matters relating to awarding of contracts. Sec. 1819. Undefinitized contractual actions. Sec. 1820. Task and delivery order contracts. Sec. 1821. Acquisition of commercial products and commercial services. Sec. 1822. Multiyear contracts. Sec. 1823. Simplified acquisition procedures. Sec. 1824. Rapid acquisition procedures. Sec. 1825. Contracts for long-term lease or charter of vessels, aircraft, and combat vehicles. Subtitle D— General Contracting Provisions Sec. 1831. Cost or pricing data. Sec. 1832. Allowable costs. Sec. 1833. Proprietary contractor data and rights in technical data. Sec. 1834. Contract financing. Sec. 1835. Contractor audits and accounting. Sec. 1836. Claims and disputes. Sec. 1837. Foreign acquisitions. Sec. 1838. Socioeconomic programs. Subtitle E— Research and Engineering Sec. 1841. Research and engineering generally. Sec. 1842. Innovation. Sec. 1843. Department of Defense laboratories. Sec. 1844. Research and development centers and facilities. Sec. 1845. Test and evaluation. Subtitle F— Major Systems, Major Defense Acquisition Programs, and Weapon Systems Development Sec. 1846. General matters. Sec. 1847. Major systems and major defense acquisition programs generally. Sec. 1848. Life-cycle and sustainment. Sec. 1849. Program status–selected acquisition reports. Sec. 1850. Cost growth—unit cost reports (Nunn-McCurdy). Sec. 1851. Weapon systems development and related matters. Subtitle G— Other Special Categories of Contracting Sec. 1856. Acquisition of services generally. Sec. 1857. Acquisition of information technology. Subtitle H— Contract Management Sec. 1861. Contract administration. Sec. 1862. Prohibitions and penalties. Sec. 1863. Contractor workforce. Sec. 1864. Other administrative matters. Subtitle I— Defense Industrial Base Sec. 1866. Defense industrial base generally. Sec. 1867. Policies and planning. Sec. 1868. Development, application, and support of dual-use technologies. Sec. 1869. Manufacturing technology. Sec. 1870. Other technology base policies and programs. Sec. 1871. Small business programs. Sec. 1872. Procurement technical assistance cooperative agreement program. Sec. 1873. Loan guarantee programs. Subtitle J— Other Matters Sec. 1876. Recodification of certain title 10 provisions relating to contract financing for certain Navy contracts. Sec. 1877. Recodification of title 10 statute on cadre of personnel who are intellectual property experts. Sec. 1878. Transfer of title 10 section relating to notification of Navy procurement production disruptions. Sec. 1879. Transfer of title 10 section relating to energy security. Sec. 1880. Part IV heading. Sec. 1881. Repeal of chapters 137, 139, 144, and 148. Sec. 1882. Revision of chapter 141. Sec. 1883. References. Sec. 1884. Savings provisions. Sec. 1885. Rule of construction. SEC. 1801. TRANSFER AND REORGANIZATION OF DEFENSE ACQUISITION STATUTES. (a) Activities.— Not later than February 1, 2021, the Secretary of Defense shall establish a process to engage interested parties and experts from the public and private sectors, as determined appropriate by the Secretary, in a comprehensive review of this title and the amendments made by this title. (b) Assessment and Report.— Not later than March 15, 2021, the Secretary of Defense shall submit to the congressional defense committees a report evaluating this title and the amendments made by this title that shall include the following elements: (1) Specific recommendations for modifications to the legislative text of this title and the amendments made by this title, along with a list of conforming amendments to law required by this title and the amendments made by this title. (2) A summary of activities conducted pursuant to the process established under subsection (a), including an assessment of the effect of this title and the amendments made by this title on related Department of Defense activities, guidance, and interagency coordination. (3) An implementation plan for updating the regulations and guidance relating to this title and the amendments made by this title that contains the following elements: (A) A description of how the plan will be implemented. (B) A schedule with milestones for the implementation of the plan. (C) A description of the assignment of roles and responsibilities for the implementation of the plan. (D) A description of the resources required to implement the plan. (E) A description of how the plan will be reviewed and assessed to monitor progress. (4) Such other items as the Secretary considers appropriate. (d) Enactment and Implementation.— (1) Delayed enactment.— Except as specifically provided, this title and the amendments made by this title shall take effect on January 1, 2022. (2) Delayed implementation.— Not later than January 1, 2023, the Secretary of Defense shall take such action as necessary to revise or modify the Department of Defense Supplement to the Federal Acquisition Regulation and other existing authorities affected by the enactment of this title and the amendments made by this title. (3) Applicability.— (A) In general.— The Secretary of Defense shall apply the law as in effect on December 31, 2021, with respect to contracts entered into during the covered period. (B) Covered period defined.— In this paragraph, the term “covered period” means the period beginning on January 1, 2022, and ending on the earlier of— (i) the date on which the Secretary of Defense revises or modifies authorities pursuant to paragraph (2); or (ii) January 1, 2023. Subtitle A— Definitions SEC. 1806. DEFINITIONS. (a) New Chapter.— (1) New subchapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3001. is amended by striking chapter 201 and inserting the following: “CHAPTER 201— DEFINITIONS “Subchapter “I. Definitions Relating to Defense Acquisition System Generally “II. Definitions Applicable to Procurement Generally “III. Definitions Relating to Major Systems and Major Defense Acquisition Programs “SUBCHAPTER I— DEFINITIONS RELATING TO DEFENSE ACQUISITION SYSTEM GENERALLY “Sec. “3001. Defense acquisition system; element of the defense acquisition system. “3002. Federal Acquisition Regulation. “3003. Defense Federal Acquisition Regulation Supplement. “3004. Head of an agency. “3005. Service chief concerned. “3006. Acquisition workforce. “§ 3001. Defense acquisition system; element of the defense acquisition system “§ 3002. Federal Acquisition Regulation “§ 3003. Defense Federal Acquisition Regulation Supplement “[Reserved]. “§ 3004. Head of an agency “§ 3005. Service chief concerned “[Reserved]. “§ 3006. Acquisition workforce “For the definition of the term ‘acquisition workforce’ for the purposes of this part, see section 101(a)(18) of this title.” . (2) Transfer of section 2545(2).— Paragraph (2) of section 2545 of title 10, United States Code, is transferred to section 3001 of such title, as added by paragraph (1), inserted after the section heading, redesignated as subsection (a), realigned 2 ems to the left, and amended— (A) by striking “The term” and inserting “Defense Acquisition System.—In this part, the term”; (B) by striking “means the” and inserting “means— “(1) the” ; (C) by striking “of Defense; the management” and inserting “of Defense; “(2) the management” ; and (D) by striking “of Defense; and the” and inserting “of Defense; and “(3) the” . (3) Transfer of section 2545(3).— Paragraph (3) of section 2545 of title 10, United States Code, is transferred to section 3001 of such title, as added by paragraph (1), inserted after subsection (a), as transferred and redesignated by paragraph (2), redesignated as subsection (b), realigned 2 ems to the left, and amended— (A) by striking “The term” and inserting “Element of the Defense Acquisition System.—In this part, the term”; (B) by striking “organization that employs” and inserting “organization that— “(1) employs” ; (C) by striking “workforce, carries out” and inserting “workforce; “(2) carries out” ; and (D) by striking “functions, and focuses” and inserting “functions; and “(3) focuses” . (4) Transfer of section 2545(1).— Paragraph (1) of section 2545 of title 10, United States Code, is transferred to section 3001 of such title, as added by paragraph (1), inserted after subsection (b), as transferred and redesignated by paragraph (3), redesignated as subsection (c), realigned 2 ems to the left, and amended by striking “The term” and inserting “Acquisition.—In this section, the term”. (5) Transfer of section 2302(6).— Paragraph (6) of section 2302 of title 10, United States Code, is transferred to section 3002 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, and amended— (A) by striking the paragraph designation; and (B) by striking “The term” and inserting “In this part, the term”. (6) Transfer of section 2302(1).— Paragraph (1) of section 2302 of title 10, United States Code, is transferred to section 3004 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, and amended— (A) by striking the paragraph designation; and (B) by striking “The term” and inserting “In this part, the term”. (b) New Subchapter II.— (1) In general.— Such chapter is further amended by adding at the end the following new subchapter: “SUBCHAPTER II— DEFINITIONS APPLICABLE TO PROCUREMENT GENERALLY “Sec. “3011. Definitions incorporated from title 41. “3012. Competitive procedures. “3013. Technical data. “3014. Nontraditional defense contractor. “3015. Simplified acquisition threshold. “3016. Chapter 137 legacy provisions. “§ 3011. Definitions incorporated from title 41 “§ 3012. Competitive procedures “§ 3013. Technical data “§ 3014. Nontraditional defense contractor “§ 3015. Simplified acquisition threshold” . (2) Transfer of 2302(3).— Paragraph (3) of section 2302 of such title is transferred to section 3011 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, and amended— (A) by striking the paragraph designation; (B) by striking “The following” and inserting “In any chapter 137 legacy provision, the following”; and (C) by redesignating subparagraphs (A) through (M) as paragraphs (1) through (13), respectively. (3) Transfer of 2302(2).— Paragraph (2) of section 2302 of such title is transferred to section 3012 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, and amended— (A) by striking the paragraph designation; (B) by striking “The term” and inserting “In this part, the term”; (C) by redesignating subparagraphs (A), (B), (C), (D), and (E) as paragraphs (1), (2), (3), (4), and (5), respectively; and (D) by redesignating clauses (i) and (ii) of paragraph (3), as so redesignated, as subparagraphs (A) and (B), respectively. (4) Transfer of 2302(4).— Paragraph (4) of section 2302 of such title is transferred to section 3013 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, and amended— (A) by striking the paragraph designation; and (B) by striking “The term” and inserting “In any chapter 137 legacy provision, the term”. (5) Transfer of 2302(9).— Paragraph (9) of section 2302 of such title is transferred to section 3014 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, and amended— (A) by striking the paragraph designation; (B) by striking “The term” and inserting “In this part, the term”; and (C) by striking “section 2371(a) or 2371b” and inserting “section 4002(a) or 4003”. (6) Transfer of 2302(7) & (8).— Paragraphs (7) and (8) of section 2302 of such title are transferred to section 3015 of such title, as added by paragraph (1), and redesignated as paragraphs (1) and (2), respectively, and such section is further amended by inserting before paragraph (1), as so redesignated, the following: “In this part:” . (7) Chapter 137 legacy provisions defined.— Subchapter II of such chapter, as added by paragraph (1), is further amended by adding at the following new section: “§ 3016. Chapter 137 legacy provisions “In this part, the term ‘chapter 137 legacy provisions’ means the following sections of this title: sections 3002, 3004, 3011–3015, 3041, 3063–3069, 3134, 3151–3157, 3201–3208, 3221–3227, 3241, 3243, 3249, 3252, 3301–3309, 3321–3323, 3344, 3345, 3371–3375, 3377, 3401, 3403, 3405, 3406, 3501–3511, 3531–3535, 3571, 3572, 3573, 3701–3708, 3741–3750, 3761, 3771–3775, 3781–3786, 3791, 3794, 3801–3807, 3841, 3842, 3847, 3881, 3901, 3902, 4202(b), 4324, 4325, 4501, 4502, 4505, 4506, 4507, 4576, 4657, 4660, 4751, 4752, and 8751.” . (c) New Subchapter III.— (1) In general.— Such chapter is further amended by adding after subchapter II, as added by subsection (b), the following new subchapter: “SUBCHAPTER III— DEFINITIONS RELATING TO MAJOR SYSTEMS AND MAJOR DEFENSE ACQUISITION PROGRAMS “Sec. “3041. Major system. “3042. Major defense acquisition program. “§ 3041. Major system “§ 3042. Major defense acquisition program “For the definition of the term ‘major defense acquisition program’ for purposes of this part, see section 4201 of this title.” . (2) Transfer of 2302(5).— Paragraph (5) of section 2302 of such title is transferred to section 3041 of such title, as added by paragraph (1), inserted after the section heading, realigned 2 ems to the left, redesignated as subsection (a), and amended— (A) by striking “The term” and inserting “In General.—In this part (other than in sections 4292(e) and 4321), the term”; (B) by designating the third sentence as subsection (b); (C) in subsection (b), as so designated— (i) by inserting “System Considered to Be a Major System.—” before “A system shall be”; and (ii) by striking “system if (A)” and all that follows and inserting “system if— “(1) the conditions of subsection (c) or (d), as applicable, are satisfied; or “(2) the system is designated a ‘major system’ by the head of the agency responsible for the system.” . (3) Transfer of 2302d(a) and (b).— Subsections (a) and (b) of section 2302d of such title are transferred to section 3041 of such title, as amended by paragraph (2), inserted after subsection (b), as designated by paragraph (2)(B), redesignated as subsections (c) and (d), respectively, and amended— (A) by striking “section 2302(5) of this title” in both subsections and inserting “subsection (b)”; and (B) in subsection (c), as so redesignated— (i) by striking “Systems.—For purposes of” and inserting “ Systems.— “(1) In general.— For purposes of” ; (ii) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; and (iii) by adding at the end the following new paragraph: “(2) Adjustment authority.— Authority for the Secretary of Defense to adjust amounts and the base fiscal year in effect under this subsection is provided in section 4202(b) of this title.” . (d) Conforming Repeal.— Section 2302 of title 10, United States Code, is repealed. (e) Conforming Cross-reference Amendments.— (1) Head of an agency.— The following provisions of law are amended by striking “section 2302(1)” and inserting “section 3004”: (A) Section 2218(k)(4) of title 10, United States Code. (B) Section 2646(c)(1) of title 10, United States Code. (2) Major system.— The following provisions of law are amended by striking “section 2302(5)” and inserting “section 3041”: (A) Section 933(e)(1)(A) of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112–239; 10 U.S.C. 2224 note). (B) Section 932(b)(1) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 2224 note). (C) Section 254(f)(1) of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110–417; 10 U.S.C. 2302 note). (D) Section 812(k) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 10 U.S.C. 2302 note). (E) Section 4471(f)(1) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 2501 note). (3) Nontraditional defense contractor.— The following provisions of law are amended by striking “section 2302(9)” or “section 2302”, as the case may be, and inserting “section 3014”: (A) Section 1110(b)(2) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 1701 note). (B) Section 217(e)(2)(D) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2222 note). (C) Section 843(c)(4) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2302 note). (D) Section 884(e)(1) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 2302 note). (E) Section 866(e)(3) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 2302 note). (F) Section 831(o)(2)(H)(i) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2302 note). (4) Significant nonmajor defense acquisition program.— Section 1737(a)(3) of title 10, United States Code, is amended by striking “section 2302(5)(A)” both places it appears and inserting “section 3041(b)(1)”. (5) Simplified acquisition threshold.— Section 801(f)(4) of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2304 note) is amended by striking “section 2302(7)” and inserting “section 3015(a)”: SEC. 1807. GENERAL MATTERS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3021. is amended by striking chapter 203 and inserting the following: “CHAPTER 203— GENERAL MATTERS “Sec. “3061. [Reserved]. “3062. Regulations. “3063. Covered agencies. “3064. Applicability chapter 137 legacy provisions. “3065. Assignment and delegation of procurement functions and responsibilities: delegation within agency. “3066. Assignment and delegation of procurement functions and responsibilities: procurements for or with other agencies. “3067. Approval required for military department termination or reduction in participation in joint acquisition programs. “3068. Inapplicability of certain laws. “3069. Buy-to-budget acquisition: end items. “3070. Limitation on acquisition of excess supplies. “3071. [Reserved]. “3072. Comptroller General assessment of acquisition programs and initiatives.”. (b) Section 2202 of Title 10 (partial).— (1) In general.— Chapter 203 of title 10, United States Code, as amended by subsection (a), is amended by inserting after the table of sections the following new sections: “§ 3062. Regulations “The Secretary of Defense shall prescribe regulations governing the performance within the Department of Defense of the procurement functions, and related functions, of the Department of Defense.” . (2) Conforming amendments.— (A) Section 2202 of title 10, United States Code, is amended by striking “procurement,”. (B) The heading of such section, and the item relating to such section in the table of sections at the beginning of chapter 131 10 USC prec. 2201, 2202. of such title, are amended by striking the third word and the comma following that word. (c) Section 2303 of Title 10.— (1) In general.— Chapter 203 of title 10, United States Code, is amended by adding after section 3062, as added by subsection (b), the following new sections: “§ 3063. Covered agencies “For purposes of any provision of law referring to this section, the agencies named in this section are the following: “§ 3064. Applicability of chapter 137 legacy provisions” . (2) Transfer of list of covered agencies.— Paragraphs (1) through (6) of section 2303(a) of title 10, United States Code, are transferred to the end of section 3063 of such title, as added by paragraph (1). (3) Transfer of applicability provisions.— Subsection (a) (as amended by paragraph (2)) and subsection (b) of section 2303 of such title are transferred to section 3064 of such title, as added by paragraph (1), inserted after the section heading, and amended— (A) in subsection (a)— (i) by striking “This chapter” and inserting “General Applicability.—Any provision of this part that is a chapter 137 legacy provision;” (ii) by striking “of the following agencies” and inserting “by any of the agencies named in section 3063 of this title”; and (iii) by striking the colon after “funds” and inserting a period; and (B) in subsection (b), by striking “The provisions of this chapter” and inserting “Applicability to Contracts for Installation or Alteration.—The provisions of this part that are chapter 137 legacy provisions”. (4) Conforming repeal.— Section 2303 of title 10, United States Code, is repealed. (d) Transfer of Section 2311 of Title 10.— (1) Transfer.— Section 2311 of title 10, United States Code, is transferred to chapter 203 of such title, inserted after section 3064, as added by subsection (c), and redesignated as section 3065. (2) Division into three sections.— The text transferred and redesignated by paragraph (1) is amended— (A) by inserting after subsection (a) the following new section heading: “§ 3066. Assignment and delegation of procurement functions and responsibilities: procurements for or with other agencies” ; (B) by inserting after subsection (b) the following new section heading: “§ 3067. Approval required for military department termination or reduction in participation in joint acquisition programs” ; (C) in section 3065, as so redesignated— (i) by striking “(a) In General.—”; and (ii) by striking “under this chapter” and inserting “under any provision of this part that is a chapter 137 legacy provision”; (D) in section 3066, as so designated— (i) by striking “(b) Procurements for or With Other Agencies.—Subject to subsection (a)” and inserting “Subject to section 3065 of this title”; (ii) by striking “covered by this chapter” and inserting “covered by any provision of this part that is a chapter 137 legacy provision”; and (iii) by striking “section 2303” and inserting “section 3063”; and (E) in section 3067, as so designated— (i) by redesignating subsection (c) as subsection (a); (ii) by striking “(1)”; (iii) by redesignating paragraph (2) as subsection (b) and inserting “Required Content of Regulations.—” before “The regulations”; and (iv) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (3) Conforming amendment.— The heading of section 3065, as transferred and redesignated by paragraph (1), is amended to read as follows: “§ 3065. Assignment and delegation of procurement functions and responsibilities: delegation within agency” . (e) Transfer and Consolidation of Sections 2314 & 2315 of Title 10.— (1) New section.— Chapter 203 of title 10, United States Code, is amended by adding after section 3067, as designated by subsection (d), the following new section: “§ 3068. Inapplicability of certain laws” . (2) Transfer of section 2314.— The text of section 2314 of such title is transferred to section 3068, as added by paragraph (1), inserted after the section heading, designated as subsection (a), and amended— (A) by inserting “Laws Inapplicable to Agencies Named in Section 3063.—” before “Sections”; and (B) by striking “section 2303” and inserting “section 3063 of this title”. (3) Transfer of section 2315.— The text of section 2315 of such title is transferred to section 3068, as added by paragraph (1), inserted after subsection (a), as transferred and designated by paragraph (2), designated as subsection (b), and amended by inserting “Laws Inapplicable to Procurement of Automatic Data Processing Equipment and Services for Certain Defense Purposes.—” before “Sections”. (4) Conforming repeals.— Sections 2314 and 2315 of title 10, United States Code, are repealed. (f) Transfer of Section 2308.— Section 2308 of title 10, United States Code, is transferred to chapter 203 of such title, inserted after section 3068, as added by subsection (e), redesignated as section 3069, and amended by striking “section 2304” in subsection (b)(2) and inserting “sections 3201 through 3205”. (g) Transfer of Sections 2213 and 2229b.— (1) Transfer.— Sections 2213 and 2229b of such title are transferred to chapter 203 of such title, inserted after section 3069, as transferred and redesignated by subsection (f), and redesignated as sections 3070 and 3072, respectively. (2) Clerical amendment.— The table of sections at the beginning of chapter 131 of such title 10 USC prec. 2201. is amended by striking the items relating to section 2213 and 2229b. SEC. 1808. DEFENSE ACQUISITION SYSTEM. (a) Transfer of Chapter 149.— (1) Transfer of chapter.— Chapter 149 of title 10, United States Code, 10 USC prec. 3101. is transferred to part V of subtitle A of that title, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), inserted in place of chapter 205 as enacted by that section, and redesignated as chapter 205. (2) Redesignation of sections.— Sections in chapter 205 of title 10, United States Code, as transferred and redesignated by paragraph (1), are redesignated as follows: Old Section No.New Section No. 25453101 25463103 2546a3102 25473104 25483105 (3) Revision of order of sections.— (A) Section 3102 of such title, as redesignated by paragraph (2), is transferred within such section so as to appear after section 3101, as so redesignated. (B) The items in the table of sections at the beginning of such chapter, as transferred by paragraph (1), 10 USC prec. 3101. are amended to conform to the redesignations made by paragraph (2) and the transfer made by subparagraph (A). (4) Tables of chapters.— The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 2201. are amended by striking the item relating to chapter 149. (b) Amendments to Transferred Sections.— (1) Section 3101.— Section 3101 of title 10, United States Code, as redesignated by subsection (a)(2), is amended— (A) by striking “chapter: “(1) The” and inserting “chapter, the” ; and (B) by striking paragraphs (2), (3), and (4). (2) Section 3104.— Section 3104 of title 10, United States Code, as redesignated by subsection (a)(2), is amended— (A) in subsection (b)(1), by striking “section 2448a(a)” and inserting “section 4271(a)”; (B) in subsection (b)(2)(B), by striking “section 2366a” and inserting “section 4251”; (C) in subsection (b)(2)(C), by striking “section 2366b” and inserting “section 4252”; and (D) in subsection (d)(3), by striking “section 2446a(b)(5)” and inserting “section 4401(b)(5)”. (3) Section 3105.— Section 3105 of title 10, United States Code, as redesignated by subsection (a)(2), is amended in subsection (b)(2)(B)(i) by striking “section 2306a” and inserting “sections 3701 through 3708”. (c) Division of Current 2548 Into Two Sections.— (1) New section.— Such chapter is further amended— (A) by inserting after subsection (c) of such section 3105, as redesignated by subsection (a)(2), the following new section heading: “§ 3106. Elements of the defense acquisition system: performance goals” ; and (B) by redesignating subsections (d) and (e) as subsections (a) and (b), respectively. (2) Conforming amendment to new 3105 heading.— The heading of such section 3105 is amended to read as follows: “§ 3105. Elements of the defense acquisition system: performance assessments” . (3) Clerical amendment.— The table of sections at the beginning of chapter 205 of such title, as amended by subsection (a)(3), 10 USC prec. 3101. is further amended by striking the item relating to section 3105 and inserting the following new items: “3105. Elements of the defense acquisition system: performance assessments. “3106. Elements of the defense acquisition system: performance goals”. (d) Cross-reference Amendments.— (1) Section 129a(c)(3) of title 10, United States Code, is amended by striking “section 2545” and inserting “section 3001”. (2) Section 1701a of such title is amended by striking “chapter 149” and inserting “chapter 205”. SEC. 1809. BUDGETING AND APPROPRIATIONS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3101. is amended by striking chapter 207 and inserting the following: “CHAPTER 207— BUDGETING AND APPROPRIATIONS “Sec. “3131. Availability of appropriations. “3132. Availability of appropriations for procurement of technical military equipment and supplies. “3133. Contracts for periods crossing fiscal years: severable service contracts; leases of real or personal property. “3134. Allocation of appropriations. “3135. Comparable budgeting for common procurement weapon systems. “3136. Defense Modernization Account. “3137. Procurement of contract services: specification of amounts requested in budget. “3138. Obligations for contract services: reporting in budget object classes.”. (b) Transfer of Section 2351.— Section 2351 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), inserted after the table of sections, and redesignated as section 3131. (c) Transfer of Section 2395.— Section 2395 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), inserted after section 3131, as transferred and redesignated by subsection (b), and redesignated as section 3132. (d) Transfer of Section 2410a.— Section 2410a of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), inserted after section 3132, as transferred and redesignated by subsection (c), and redesignated as section 3133. (e) Transfer of Section 2309.— (1) Transfer.— Section 2309 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), added after section 3133, as transferred and redesignated by subsection (d), and redesignated as section 3134. (2) Amendments.— Such section is amended— (A) in subsection (a), by striking “named in section 2303” and inserting “named in section 3063”; and (B) by adding at the end the following new subsection: “(c) For purposes of sections 3064 and 3066 of this title, this section shall be deemed to be a section of chapter 137 of this title.” . (f) Transfer of Section 2217.— (1) Transfer.— Section 2217 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), added after section 3134, as transferred and redesignated by subsection (e), and redesignated as section 3135. (2) Clerical amendment.— The table of sections at the beginning of chapter 131 of such title 10 USC prec. 2201. is amended by striking the item relating to section 2217. (g) Transfer of Section 2216.— (1) Transfer.— Section 2216 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), added after section 3135, as transferred and redesignated by subsection (f), and redesignated as section 3136. (2) Clerical amendment.— The table of sections at the beginning of chapter 131 of such title 10 USC prec. 2201. is amended by striking the item relating to section 2216. (h) Transfer of Section 235.— (1) Transfer.— Section 235 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), added after section 3136, as transferred and redesignated by subsection (g), and redesignated as section 3137. (2) Clerical amendment.— The table of sections at the beginning of chapter 9 of such title 10 USC prec. 221. is amended by striking the item relating to section 235. (i) Transfer of Section 2212.— (1) Transfer.— Section 2212 of title 10, United States Code, is transferred to chapter 207 of such title, as amended by subsection (a), added after section 3137, as transferred and redesignated by subsection (h), and redesignated as section 3138. (2) Clerical amendment.— The table of sections at the beginning of chapter 131 of such title 10 USC prec. 2201. is amended by striking the item relating to section 2212. SEC. 1810. OPERATIONAL CONTRACT SUPPORT. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3151. is amended by striking chapter 209 and inserting the following: “CHAPTER 209— OPERATIONAL CONTRACT SUPPORT “Subchapter “I. Joint Policies on Requirements Definition, Contingency Program Management, and Contingency Contracting “II. Other Provisions Relating to Operational Contract Support “SUBCHAPTER I— JOINT POLICIES ON REQUIREMENTS DEFINITION, CONTINGENCY PROGRAM MANAGEMENT, AND CONTINGENCY CONTRACTING “Sec. “3151. Joint policy requirement. “3152. Requirements definition matters covered. “3153. Contingency program management matters covered. “3154. Contingency contracting matters covered. “3155. Training for personnel outside acquisition workforce. “3156. Mission readiness exercises. “3157. Definitions; applicability. “§ 3151. Joint policy requirement “§ 3152. Requirements definition matters covered “§ 3153. Contingency program management matters covered “§ 3154. Contingency contracting matters covered “§ 3155. Training for personnel outside acquisition workforce “§ 3156. Mission readiness exercises “§ 3157. Definitions; applicability “In this subchapter:” . (b) Transfer of Section 2333.— Provisions of section 2333 of title 10, United States Code, are transferred to chapter 209 of such title, as amended by subsection (a), as follows: (1) Subsection (a).— Subsection (a) of such section 2333 is transferred to such chapter, inserted after the heading for section 3151, and amended by striking the subsection designation and subsection heading. (2) Subsection (b).— Subsection (b) of such section 2333 is transferred to such chapter, inserted after the heading for section 3152, and amended— (A) by striking the subsection designation and subsection heading; and (B) by striking “subsection (a)” and inserting “section 3151 of this title”. (3) Subsection (c).— Subsection (c) of such section 2333 is transferred to such chapter, inserted after the heading for section 3153, and amended— (A) by striking the subsection designation and subsection heading; and (B) by striking “subsection (a)” and inserting “section 3151 of this title”. (4) Subsection (d).— Subsection (d) of such section 2333 is transferred to section 3154 of such chapter, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended— (A) by striking “Contingency Contracting Matters Covered.—(1)” and inserting “In General.—”; (B) by redesignating paragraph (2) as subsection (b) and inserting “Interagency Plans.—” in that subsection before “To the extent”; (C) by striking “subsection (a)” both places it appears and inserting “section 3151 of this title”; and (D) in subsection (a), as so redesignated— (i) by redesignating subparagraphs (A) through (F) as paragraphs (1) through (6), respectively; and (ii) by redesignating clauses (i) through (iv) of paragraph (4) (as so redesignated) as subparagraphs (A) through (D), respectively. (5) Subsection (e).— Subsection (e) (other than paragraph (3)) of such section 2333 is transferred to section 3155 of such chapter, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended— (A) by striking “Training for Personnel Outside Acquisition Workforce.—(1)” and inserting “Required Training.—”; (B) by striking “subsection (a)” and inserting “section 3151 of this title”; and (C) by redesignating paragraph (2) as subsection (b) and in that subsection— (i) by striking “Training under paragraph (1)” and inserting “Scope of Training.—Training under subsection (a)”; and (ii) by striking “referred to in that paragraph” and all that follows and inserting “referred to in that subsection— “(1) understand the scope and scale of contractor support they will experience in contingency operations; and “(2) are prepared for their roles and responsibilities with regard to— “(A) requirements definition; “(B) program management (including contractor oversight); and “(C) contingency contracting.” . (6) Subsection (e)(3).— Paragraph (3) of such subsection (e) is transferred to such chapter, inserted after the heading for section 3156, and amended— (A) by striking the paragraph designation; and (B) by inserting “required by section 3151 of this title” after “The joint policy”. (7) Subsection (f).— Paragraphs (6), (5), (2), and (1) of subsection (f) of such section are transferred (in that order) to section 3157 of such chapter, inserted at the end, and redesignated as paragraphs (1) through (4), respectively. (c) Cross Reference Amendment.— Paragraph (4)(B) of subsection (a) of section 3154 of title 10, United States Code, as transferred and redesignated by subsection (b)(3), is amended by striking “section 2304” and inserting “sections 3201 through 3205”. (d) Additional Provisions Relating to Operational Contract Support.— Chapter 209 of title 10, United States Code, is amended by adding at the end the following new subchapter: “SUBCHAPTER II— OTHER PROVISIONS RELATING TO OPERATIONAL CONTRACT SUPPORT “Sec. “3171. Contracts for property or services in support of a contingency operation: competition and review. “3172. Operational contract support: chain of authority and responsibility within Department of Defense. “§ 3171. Contracts for property or services in support of a contingency operation: competition and review “[Reserved]. “§ 3172. Operational contract support: chain of authority and responsibility within Department of Defense “[Reserved].” . Subtitle B— Acquisition Planning SEC. 1811. PLANNING AND SOLICITATION GENERALLY. (a) Tables of Chapters Amendment.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of Public Law 115–232), of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the items relating to chapters 221 and 223 and inserting the following: “221. Planning and Solicitation Generally “222. Independent Cost Estimation and Cost Analysis “223. Other Provisions Relating to Planning and Solicitation Generally “225. Planning and Solicitation Relating to Particular Items or Services (b) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3201, prec. 3251. is amended by striking chapters 221 and 223 and inserting the following: “CHAPTER 221— PLANNING AND SOLICITATION GENERALLY “Sec. “3201. Full and open competition. “3202. [Reserved]. “3203. Exclusion of particular source or restriction of solicitation to small business concerns. “3204. Use of procedures other than competitive procedures. “3205. Simplified procedures for small purchases. “3206. Planning and solicitation requirements. “3207. Assessment before contract for acquisition of supplies is entered into. “3208. Planning for future competition in contracts for major systems.”. (c) Section 2304 (partial).— (1) Section heading.— Chapter 221 of title 10, United States Code, as amended by subsection (b), is amended by adding after the table of sections the following new section: “§ 3201. Full and open competition” . (2) Transfer of subsection (a) of section 2304.— Subsection (a) of section 2304 of title 10, United States Code, is transferred to section 3201 of such title, as added by paragraph (1), inserted after the section heading, and amended— (A) by redesignating paragraph (2) as subsection (b); (B) by striking “(1) Except as provided in subsections (b), (c), and (g),” and inserting “In General.—Except as provided in sections 3203, 3204(a), and 3205 of this title,”; (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (D) in paragraph (1), as so redesignated, by striking “this chapter” and inserting “this section and sections 3069, 3203, 3204, 3205, 3403, 3405, 3406, 3901 4501, and 4502 of this title”; and (E) in subsection (b), as redesignated by subparagraph (A)— (i) by inserting “Determination of Appropriate Competitive Procedures.—” before “In determining”; (ii) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (iii) in paragraph (1), as so redesignated, by redesignating clauses (i), (ii), (iii), and (iv) as subparagraphs (A), (B), (C), and (D), respectively; and (iv) in paragraph (2), as so redesignated, by striking “clause (A)” and inserting “paragraph (1)”. (3) Transfer of subsection (j) of section 2304.— Subsection (j) of such section 2304 is transferred to such section 3201, inserted after subsection (b), as transferred and redesignated by paragraph (2), redesignated as subsection (c), and amended by inserting “Efficient Fulfillment of Government Requirements.—” before “The Federal”. (4) Transfer of subsection (h) of section 2304.— Subsection (h) of such section 2304 is transferred to such section 3201, inserted after subsection (c), as transferred and redesignated by paragraph (3), redesignated as subsection (d), and amended by inserting “Certain Purchases or Contracts to Be Treated as if Made With Sealed-bid Procedures.—” before “For the purposes”. (5) Transfer of subsection (k) of section 2304.— Subsection (k) of such section 2304 is transferred to such section 3201, inserted after subsection (d), as transferred and redesignated by paragraph (4), redesignated as subsection (e), and amended— (A) by striking the subsection designation and all that follows through “section 2303(a)” in paragraph (1) and inserting the following: “(e) New Contracts and Merit-based Selection Procedures.— “(1) Congressional policy.— It is the policy of Congress that an agency named in section 3063” ; (B) by moving paragraphs (2), (3), and (4) two ems to the right; (C) by switching paragraphs (2) and (3) and redesignating them accordingly; (D) in paragraph (2), as so redesignated by subparagraph (C), by inserting “New contract described.—” before “For purposes of”; (E) in paragraph (3), as so redesignated by subparagraph (C), by inserting “Provision of law described.—” before “A provision of”; and (F) in paragraph (4)— (i) by inserting “Exception.—” before “This subsection”; and (ii) by striking “section 2303(a)” and inserting “section 3063”. (d) Section 2304 (partial).— (1) Section headings.— Chapter 221 of title 10, United States Code, as amended by subsection (b), is amended by adding after section 3201, as added by subsection (c), the following new sections: “§ 3203. Exclusion of particular source or restriction of solicitation to small business concerns “§ 3204. Use of procedures other than competitive procedures “§ 3205. Simplified procedures for small purchases” . (2) Transfer of subsection (b) of section 2304.— Subsection (b) of section 2304 of title 10, United States Code, is transferred to section 3203 of such title, as added by paragraph (1), inserted after the section heading, redesignated as subsection (a), and amended— (A) by striking the subsection designation and all that follows through “may provide for” the first place it appears and inserting the following: “(a) Exclusion of Particular Source.— “(1) Criteria for exclusion.— The head of an agency may provide for” ; (B) by striking “covered by this chapter” in the matter preceding subparagraph (A) and inserting “covered by chapter 137 legacy provisions”; (C) by indenting subparagraphs (A) through (F) of paragraph (1) four ems from the left margin; (D) by redesignating paragraph (2) as subsection (b) and in that subsection— (i) inserting “Exclusion of Other Than Small Business Concerns.—” before “The head of”; and (ii) striking “this section” and inserting “chapter 137 legacy provisions”; (E) by redesignating paragraph (3) as subsection (c) and in that subsection— (i) inserting “Inapplicability of Justification and Approval Requirements.—” before “A contract”; and (ii) striking “subsection (f)(1)” and inserting “section 3204(e)(1) of this title”; and (F) by transferring paragraph (4) to the end of subsection (a), as so redesignated, redesignating such paragraph as paragraph (2), indenting such paragraph two ems from the left margin, and inserting “Determination for Class Disallowed.—” before “A determination”. (3) Transfer of subsection (c) of section 2304.— Subsection (c) of section 2304 of title 10, United States Code, is transferred to section 3204 of such title, as added by paragraph (1), inserted after the section heading, redesignated as subsection (a), and amended— (A) by inserting “When Procedures Other Than Competitive Procedures May Be Used.—” before “The head of an agency may use”; (B) in paragraph (3)— (i) by striking “in order (A) to maintain” and inserting “in order— “(A) to maintain” ; (ii) by striking “industrial mobilization, (B) to establish” and inserting “industrial mobilization— “(B) to establish” ; (iv) by striking “development center, or (C) to procure” and inserting “development center— “(C) to procure” ; (C) in paragraph (5), by striking “subsection (k)” and inserting “section 3201(e) of this title”; and (D) in paragraph (7), by inserting “(who may not delegate the authority under this paragraph)” after “the head of the agency”. (4) Transfer of subsection (d) of section 2304.— Subsection (d) of section 2304 of title 10, United States Code, is transferred to section 3204 of such title, as added by paragraph (1), inserted after subsection (a), as transferred and redesignated by paragraph (3), redesignated as subsection (b), and amended— (A) by striking “(1) For the purposes” and inserting “Property or Services Considered to Be Available From Only One Source.—For the purposes”; (B) by striking “subsection (c)(1)” and inserting “subsection (a)(1)”; (C) by striking paragraph (2); and (D) by redesignating paragraph (3) as subsection (c) and in that subsection— (i) by striking “(A) The contract period” and inserting “ Property or Services Needed With Unusual and Compelling Urgency.— “(1) Allowable contract period.— The contract period” ; (ii) by redesignating subparagraph (B) as paragraph (2), indenting that paragraph two ems from the left margin, and striking “this paragraph” and inserting “Applicability of allowable contract period.—This subsection”; and (iii) in paragraph (1), as designated by clause (i)— (I) by striking “subparagraph (B)” and “subsection (c)(2)” and inserting “paragraph (2)” and “subsection (a)(2)”, respectively; and (II) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, redesignating subclauses (I) and (II) of such subparagraph (A) as clauses (i) and (ii), respectively, and moving such subparagraphs two ems to the right. (5) Transfer of subsection (e) of section 2304.— Subsection (e) of section 2304 of title 10, United States Code, is transferred to section 3204 of such title, as added by subparagraph (A), inserted after subsection (c), as transferred and redesignated by subparagraph (D), redesignated as subsection (d), and amended— (A) by inserting “Offer Requests to Potential Sources.—The head of”; and (B) by striking “subsection (c)(2) or (c)(6)” and inserting “paragraph (2) or (6) of subsection (a)”. (6) Transfer of subsection (f) of section 2304.— Subsection (f) of section 2304 of title 10, United States Code, is transferred to section 3204 of such title, as added by paragraph (1), inserted after subsection (d), as transferred and redesignated by paragraph (5), redesignated as subsection (e), and amended— (A) by striking “(1) Except as provided in paragraph (2) and paragraph (6)” and inserting “Justification for Use of Procedures Other Than Competitive Procedures.—” “(1) Prerequisites for awarding contract.— Except as provided in paragraphs (3), (4), and (7),” ; (B) by moving subparagraphs (A), (B), and (C) of paragraph (1) two ems to the right; (C) by switching paragraphs (2) and (3) and redesignating those paragraphs accordingly; (D) in paragraph (2), as so redesignated, by inserting “Elements of justification.—” before “The justification”; (E) in paragraph (3), as so redesignated— (i) by inserting “Justification and approval allowed after contract awarded.—” before “In the case of”; and (ii) by striking “subsection (c)(2)” in the first sentence and inserting “subsection (a)(2)”; (F) by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively; (G) by designating the second sentence of paragraph (3), as redesignated by subparagraph (C), as paragraph (4) and in that paragraph— (i) by inserting “Justification and approval not required.—” before “The justification and approval”; (ii) in subparagraph (C), by striking “subsection (c)(7)” and inserting “subsection (a)(7)”; and (iii) in subparagraph (E), by striking “subsection (c)(4)” and inserting “subsection (a)(4)”; (H) in paragraph (5), as redesignated by subparagraph (F)— (i) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and moving those clauses two ems to the right; (ii) by striking “In no case” and inserting “ Restrictions on Agencies.— “(A) In no case” ; (iii) in subparagraph (A)(ii), as so redesignated, by striking “this chapter” and inserting “chapter 137 legacy provisions”; and (iv) by designating the sentence beginning “The restriction contained” as subparagraph (B) and by striking “clause (B)” in that sentence and inserting “subparagraph (A)(ii)”; (I) in paragraph (6), as redesignated by subparagraph (F), by striking “(A) The authority” and inserting “Limitation on Delegations of Authority Under Paragraph (1)(B).—(A) The authority”; (J) in paragraph (7), as redesignated by subparagraph (F), by inserting “Justification and approval not required for phase iii sbir award.—” before “The justification”; and (K) by moving such paragraphs (2) through (7) two ems to the right. (7) Transfer of subsection (l) of section 2304.— Subsection (l) of section 2304 of title 10, United States Code, is transferred to section 3204 of such title, as added by paragraph (1), inserted after subsection (e), as transferred and redesignated by paragraph (6), redesignated as subsection (f), and amended— (A) by striking “(1)(A) Except as provided in” and inserting “ Public Availability of Justification and Approval Required for Using Procedures Other Than Competitive Procedures.— “(1) Time requirement.— “(A) Within 14 days after contract award.— Except as provided in” ; (B) in paragraph (1)(A), by striking “subsection (c)” and “subsection (f)(1)” and inserting “subsection (a)” and “subsection (e)(1)”, respectively; (C) by indenting subparagraph (B) of paragraph (1) four ems from the left margin and in that subparagraph— (i) by inserting “Within 30 days after contract award.—” before “In the case of”; and (ii) by striking “subsection (c)(2)” and inserting “subsection (a)(2)”; (D) by indenting paragraphs (2) and (3) two ems from the left margin; (E) in paragraph (2), by inserting “Availability on websites.—” before “The documents”; and (F) in paragraph (3), by inserting “Exception.—” before “This subsection”. (8) Transfer of subsection (i) of section 2304.— Subsection (i) of section 2304 of title 10, United States Code, is transferred to section 3204 of such title, as added by paragraph (1), inserted after subsection (f), as transferred and redesignated by paragraph (7), redesignated as subsection (g), and amended— (A) by striking “(1) The Secretary” and inserting “Regulations With Respect to Negotiation of Prices.—” “(1) The Secretary” ; (B) in paragraph (1), by striking “, as defined in section 2302(2) of this title”; and (C) by moving paragraphs (2) and (3) two ems to the right. (9) Transfer of subsection (g) of section 2304.— Subsection (g) of section 2304 of title 10, United States Code, is transferred to section 3205 of such title, as added by paragraph (1), inserted after the section heading, redesignated as subsection (a), and amended— (A) by striking “(1) in order to” and inserting “Authorization.—In order to”; (B) by redesignating paragraphs (2), (3), and (4) as subsections (b), (c), and (d), respectively; (C) by redesignating subparagraphs (A) and (B) in subsection (a) as paragraphs (1) and (2), respectively; (D) in subsection (b), as redesignated by subparagraph (B)— (i) by inserting “Prohibition on Dividing Contracts.—” before “A proposed”; and (ii) by striking “paragraph (1)” and inserting “subsection (a)”; (E) in subsection (c), as redesignated by subparagraph (B), by inserting “Promotion of Competition.—” before “In using”; and (F) in subsection (d), as redesignated by subparagraph (B), by inserting “Compliance With Special Requirements of Federal Acquisition Regulation.—” before “The head of”. (e) Section 2305(a).— (1) In general.— Such chapter is further amended by adding at the end the following new section: “§ 3206. Planning and solicitation requirements” . (2) Transfer of subsection (a) of section 2305.— Subsection (a) of section 2305 of title 10, United States Code, is transferred to section 3206 of such title, as added by paragraph (1), and inserted after the section heading, and paragraphs (2), (3), (4), and (5) thereof are redesignated as subsections (b), (c), (d), and (e), respectively. (3) Revisions to subsection (a).— Subsection (a) of such section 3206, as transferred by paragraph (2), is amended— (A) by redesignating subparagraphs (B) and (C) as paragraphs (2) and (3), respectively; (B) in paragraph (2), as so redesignated— (i) by inserting “Requirements of specifications.—” before “Each solicitation”; (ii) by striking “under this chapter” after “Each solicitation” and inserting “under chapter 137 legacy provisions”; (iii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (iv) in subparagraph (A), as so redesignated, by striking “of this chapter” and inserting “of chapter 137 legacy provisions”; (C) in paragraph (3), as so redesignated— (i) by inserting “Types of specifications.—” before “For the purposes”; and (ii) by redesignating clauses (i), (ii), and (ii) as subparagraphs (A), (B), and (C), respectively; (D) by moving such paragraphs (2) and (3) two ems to the right; and (E) in paragraph (1)— (i) by striking “(1)(A) In preparing for” and inserting “ Planning and Specifications.— “(1) Preparing for procurement.— In preparing for” ; (ii) by redesignating clauses (i), (ii), and (ii) as subparagraphs (A), (B), and (C), respectively; and (iii) by moving such subparagraphs two ems to the right. (4) Revisions to subsection (b).— Subsection (b) of such section 3206, as redesignated by paragraph (2), is amended— (A) in the matter preceding subparagraph (A)— (i) by inserting “Contents of solicitation.—” before “In addition to”; and (ii) by striking “paragraph (1)” and inserting “subsection (a)”; (B) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (C) by redesignating clauses (i) and (ii) of paragraphs (1) and (2) (as so redesignated) as subparagraphs (A) and (B), respectively; and (D) in subparagraphs (A) and (B) of such paragraph (2), as so redesignated, by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively. (5) Revisions to subsection (c).— Subsection (c) of such section 3206, as redesignated by paragraph (2), is amended— (A) by striking “(A) In prescribing the” and inserting “ Evaluation Factors.— “(1) In general.— In prescribing the” ; (B) by redesignating subparagraphs (B), (C), (D), and (E) as paragraphs (2), (3), (4), and (5), respectively, and moving those paragraphs two ems to the right; (C) in paragraph (1), as designated by subparagraph (A)— (i) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and moving those paragraphs two ems to the right; (ii) by redesignating subclauses (I), (II), and (III) of subparagraph (C) (as so redesignated) as clauses (i), (ii), and (iii), respectively; and (iii) by striking “subparagraph (C)” both places it appears and inserting “paragraph (3)”; (D) in paragraph (2), as redesignated by subparagraph (B)— (i) by inserting “Restriction on implementing regulations.—” before “The regulations implementing”; and (ii) by striking “clause (iii) of subparagraph (A)” and inserting “paragraph (1)(C)”; (E) in paragraph (3), as redesignated by subparagraph (B)— (i) by inserting “Exceptions for certain multiple task or delivery order contracts.—” before “If the head of”; (ii) by striking “section 2304a(d)(1)(B)” and inserting “section 3403(d)(1)(B)”; (iii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (iv) in subparagraph (A), as so redesignated, by striking “clause (ii) of subparagraph (A)” and inserting “paragraph (1)(B)” and (v) in subparagraph (B), as so redesignated— (I) by striking “clause (i)” in the matter preceding subclause (I) and inserting “subparagraph (A)”; (II) by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively; (III) in clause (i), as so redesignated, by striking “clause (iii) of subparagraph (A)” and inserting “paragraph (1)(C)”; and (IV) in clause (ii), as so redesignated, by striking “section 2304c(b)” and inserting “section 3406(c)”; (F) in paragraph (4), as redesignated by subparagraph (B)— (i) by inserting “Definition.—” before “In subparagraph”; (ii) by striking “subparagraph (C)” and inserting “paragraph (3)”; and (iii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; and (G) in paragraph (5), as redesignated by subparagraph (B), by striking “Subparagraph (C)” and inserting “Exclusion of applicability to certain contracts.—Paragraph (3)”. (6) Revisions to subsection (d).— Subsection (d) of such section 3206, as redesignated by paragraph (2), is amended— (A) by inserting “Additional Information in Solicitation.—” before “Nothing in”; (B) by striking “this subsection” and inserting “this section”; and (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (7) Revision to subsection (e).— Subsection (e) of such section 3206, as redesignated by paragraph (2), is amended by inserting “Limitation on Evaluation of Purchase Options.—” before “The head of”. (f) Section 2305(c).— (1) Section heading.— Such chapter is further amended by adding at the end the following new section: “§ 3207. Assessment before contract for acquisition of supplies is entered into” . (2) Transfer of subsection (c) of section 2305.— Subsection (c) of section 2305 of title 10, United States Code, is transferred to section 3207 of such title, as added by paragraph (1), inserted after the section heading, and amended by striking the subsection designation. (g) Section 2305(d).— (1) Section heading.— Such chapter is further amended by adding at the end the following new section: “§ 3208. Planning for future competition in contracts for major systems” . (2) Transfer of subsection (d) of section 2305.— Subsection (d) of section 2305 of title 10, United States Code, is transferred to section 3208 of such title, as added by paragraph (1), inserted after the section heading, and redesignated as subsection (a), and paragraphs (2), (3), and (4) thereof are redesignated as subsections (b), (c), and (d), respectively. (3) Revisions to subsection (a).— Subsection (a) of such section 3208, as transferred and redesignated by paragraph (2), is amended— (A) by striking “(1)(A) The Secretary” and inserting “ Development Contract.— “(1) Determining whether proposals are necessary.— The Secretary” ; (B) by striking “subparagraph (B)” in the first sentence and inserting “paragraph (2)”; (C) by redesignating subparagraph (B) as paragraph (2) and clauses (i) and (ii) thereof as subparagraphs (A) and (B), respectively; and (D) in paragraph (2), as so redesignated— (i) by inserting “Contents of proposals.—” before “Proposals referred to”; and (ii) by striking “subparagraph (A)” and inserting “paragraph (1)”. (4) Revisions to subsection (b).— Subsection (b) of such section 3208, as redesignated by paragraph (2), is amended— (A) by striking “(A) The Secretary” and inserting “ Production Contract.— “(1) Determining whether proposals are necessary.— The Secretary” ; (B) by striking “subparagraph (B)” in the first sentence and inserting “paragraph (2)”; (C) by redesignating subparagraph (B) as paragraph (2) and clauses (i) and (ii) thereof as subparagraphs (A) and (B), respectively; and (D) in paragraph (2), as so redesignated— (i) by inserting “Contents of proposals.—” before “Proposals referred to”; and (ii) by striking “subparagraph (A)” and inserting “paragraph (1)”. (5) Revisions to subsection (c).— Subsection (c) of such section 3208, as redesignated by paragraph (2), is amended— (A) by inserting “Consideration of Factors as Objectives in Negotiations.—” before “If the head of”; and (B) by striking “paragraphs (1) and (2)” and inserting “subsections (a) and (b)”. (6) Revisions to subsection (d).— Subsection (d) of such section 3208, as redesignated by paragraph (2), is amended— (A) by striking “(A) Whenever the head of” and inserting “ Items Developed Exclusively at Private Expense.— “(1) Limitation.— Whenever the head of” ; (B) by redesignating subparagraph (B) as paragraph (2), inserting “Evaluation.—” before “In considering”, and indenting that paragraph two ems from the left margin; (C) by redesignating clauses (i) and (ii) of paragraph (1) as subparagraphs (A) and (B), respectively, and indenting those subparagraphs four ems from the left margin; and (D) by striking “paragraph (1)(B) or (2)(B)” both places it appears and inserting “subsection (a)(2) or (b)(2)”. SEC. 1812. INDEPENDENT COST ESTIMATION AND COST ANALYSIS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 221, as added by the preceding section, the following new chapter: “CHAPTER 222— INDEPENDENT COST ESTIMATION AND COST ANALYSIS “3221. Director of Cost Assessment and Program Evaluation. “3222. Independent cost estimate required before approval. “3223. Director: review of cost estimates, cost analyses, and records of the military departments and Defense Agencies. “3224. Director: participation, concurrence, and approval in cost estimation. “3225. Discussion of risk in cost estimates. “3226. Estimates for program baseline and analyses and targets for contract negotiation purposes. “3227. Guidelines and collection method for acquisition of cost data. “§ 3221. Director of Cost Assessment and Program Evaluation “§ 3222. Independent cost estimate required before approval “§ 3223. Director: review of cost estimates, cost analyses, and records of the military departments and Defense Agencies “§ 3224. Director: participation, concurrence, and approval in cost estimation “§ 3225. Discussion of risk in cost estimates “§ 3226. Estimates for program baseline and analyses and targets for contract negotiation purposes “§ 3227. Guidelines and collection method for acquisition of cost data” . (b) Transfer of Subsections (a) and (h) of Section 2334 to Section 3221.— (1) Transfer of subsection (a) of section 2334.— Subsection (a) of section 2334 of title 10, United States Code, is transferred to section 3221 of such title, as added by subsection (a), inserted after the section heading, and amended by designating the second sentence as subsection (b). (2) Revisions to new subsection (b).— Subsection (b) of such section 3221, as designated by paragraph (1), is amended— (A) by striking “In carrying out that responsibility,” and inserting “Functions.—In carrying out the responsibility of the Director under subsection (a),”; (B) in paragraph (2)— (i) by striking “provide guidance” and all that follows through “Defense Agencies”; and (ii) by striking “of this title;” and inserting “of this title, provide guidance to and consult with— “(A) the Secretary of Defense; “(B) the Under Secretary of Defense for Acquisition and Sustainment; “(C) the Under Secretary of Defense (Comptroller); “(D) the Secretaries of the military departments; and “(E) the heads of the Defense Agencies;” ; (C) in paragraph (6)(A)— (i) in clause (i), by striking “section 2366a or 2366b” and inserting “section 4251 or 4252”; and (ii) in clause (iii), by striking “section 2433a” and inserting “section 4376”; and (D) in paragraph (8), by striking “section 2432(c)(1)” and inserting “section 4353(a)”. (3) Transfer of subsection (h) of section 2334.— Subsection (h) of section 2334 of title 10, United States Code, is transferred to such section 3221, inserted after subsection (b), as designated by paragraph (2), and redesignated as subsection (c). (c) Transfer of Subsection (b) of Section 2334.— (1) Transfer.— Subsection (b) of section 2334 of title 10, United States Code, is transferred to section 3222 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (2) Revisions.— Such section 3222 is amended— (A) by striking “Independent Cost Estimate Required Before Approval.—(1) A milestone” and inserting “Requirement.— A milestone”; (B) by redesignating paragraph (2) as subsection (b); (C) in subsection (b), as so redesignated— (i) by inserting “Regulations.—” before “The regulations”; and (ii) by striking “subsection (a)” and inserting “section 3221 of this title”; and (D) in subsections (a) and (b), as so redesignated, by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (d) Transfer of Subsection (c) of Section 2334.— Subsection (c) of section 2334 of title 10, United States Code, is transferred to section 3223 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (e) Transfer of Subsection (d) of Section 2334.— (1) Transfer.— Subsection (d) of section 2334 of title 10, United States Code, is transferred to section 3224 of such title, as added by subsection (a), and inserted after the section heading. (2) Revisions.— Such section 3224 is amended— (A) by striking the subsection designation and subsection heading; and (B) in paragraph (3), by striking “subsection (a)(6)” and inserting “section 3221(b)(6) of this title”. (f) Transfer of Subsection (e) of Section 2334.— (1) Transfer.— Subsection (e) of section 2334 of title 10, United States Code, is transferred to section 3225 of such title, as added by subsection (a), and inserted after the section heading. (2) Revisions.— Such section 3225 is amended— (A) by striking the subsection designation and subsection heading; (B) in paragraph (3)(A), by striking “subsection (a)(6)” and inserting “section 3221(b)(6) of this title”; and (C) in paragraph (3)(B), by striking “section 2432” and inserting “sections 4351 through 4358”. (g) Transfer of Subsection (f) of Section 2334.— (1) Transfer.— Subsection (f) of section 2334 of title 10, United States Code, is transferred to section 3226 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (2) Revisions.— Such section 3226 is amended— (A) by striking “Estimates for” and all that follows through “(1) The policies,” and inserting “Cost Estimates Developed for Specified Purposes Not to Be Used for Contract Negotiations or Obligation of Funds.—The policies,”; (B) in subsection (a), as so redesignated— (i) by striking “subsection (a)” and inserting “section 3221 of this title”; and (ii) by striking “subsection (a)(6)” and inserting “subsection (b)(6) of such section”; (C) by redesignating paragraph (2) as subsection (b) and inserting “Cost Estimates Developed for Specified Purposes Not to Be Used for Contract Negotiations or Obligation of Funds.—” before “The Under”; (D) by redesignating paragraph (3) as subsection (c) and in that subsection— (i) by striking the first three words and inserting “Program Manager and Contracting Officer.—The program manager”; and (ii) by striking “paragraph (1)” and “paragraph (2)” and inserting “subsection (a)” and “subsection (b)”, respectively; and (E) by redesignating paragraph (4) as subsection (d) and in that subsection— (i) by striking “Funds that are” and inserting “Availability of Excess Funds.—” “(1) Funds that are” ; (ii) in paragraph (1), as designated by clause (i), by striking “subsection (a)(6)” and “paragraph (2)” and inserting “section 3221(b)(6) of this title” and “subsection (b)”, respectively; (iii) by redesignating paragraph (5) as paragraph (2) and moving that paragraph two ems to the right; and (iv) in paragraph (2), as so redesignated— (I) in the matter preceding subparagraph (A), by striking “paragraph (4)” and inserting “paragraph (1)”; (II) in subparagraph (A)(i), by striking “paragraph (2)” and inserting “subsection (b)”; and (III) in subparagraph (A)(ii), by striking “section 2308” and inserting “section 3069”. (h) Transfer of Subsection (g) of Section 2334.— (1) Transfer.— Subsection (g) of section 2334 of title 10, United States Code, is transferred to section 3227 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (2) Revisions.— Section 3227, as amended by paragraph (1), is further amended— (A) by striking “Guidelines and” and all that follows through “(1) The Director of” and inserting “Director of Cape to Develop Guidelines and Collection Method.—The Director of”; (B) by redesignating paragraph (2) as subsection (b) and in that subsection— (i) by inserting “Applicability to Acquisition Programs in Amount Greater Than Specified Threshold.—” before “The program manager”; and (ii) by striking “paragraph (1)” and inserting “subsection (a)”; and (C) by redesignating paragraph (3) as subsection (c) and in that subsection— (i) by inserting “Limitation on Waiver Authority.—” before “The requirement”; and (ii) by striking “paragraph (1)” and inserting “subsection (a)”. SEC. 1813. OTHER PROVISIONS RELATING TO PLANNING AND SOLICITATION GENERALLY. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 222, as added by the preceding section, the following new chapter: “CHAPTER 223— OTHER PROVISIONS RELATING TO PLANNING AND SOLICITATION GENERALLY “Sec. “3241. Design-build selection procedures. “3242. Supplies: economic order quantities. “3243. Encouragement of new competitors: qualification requirement. “3244. [Reserved]. “3245. [Reserved]. “3246. [Reserved]. “3247. Contracts: regulations for bids. “3248. Matters relating to reverse auctions. “3249. Advocates for competition. “3250. [Reserved]. “3251. [Reserved]. “3252. Requirements for information relating to supply chain risk.”. (b) Transfer of Section 2305a of Title 10.— Section 2305a of title 10, United States Code, is transferred to chapter 223 of such title, as added by subsection (a), inserted after the table of sections at the beginning, redesignated as section 3241, and amended as follows: (1) Subsection (b).— Subsection (b) is amended— (A) by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively, and moving those subparagraphs two ems to the right; and (B) in the matter preceding subparagraph (A), as so redesignated— (i) by striking “or work when the contracting officer” and inserting “or work when— “(1) the contracting officer” ; (ii) by striking “such contract, design work” and inserting “such contract; “(2) design work” ; (iii) by striking “such contract, the offeror” and inserting “such contract; “(3) the offeror” ; and (iv) by striking “the offer, and the contracting officer” and inserting “the offer; and “(4) the contracting officer” . (2) Subsection (c).— Subsection (c) is amended— (A) in paragraph (1), by inserting “Development of scope of work statement.—” before “The agency develops”; (B) in paragraph (2), by inserting “Solicitation of phase-one proposals.—” before “The contracting officer”; (C) in paragraph (3)— (i) by striking “The evaluation factors” and inserting “Evaluation factors.—” “(A) Evaluation factors to be used.— The evaluation factors” ; (ii) by designating the second and third sentences as subparagraphs (B) and (C), respectively; (iii) in subparagraph (A), as designated by clause (i)— (I) by striking “and include specialized experience” and inserting “and include— “(i) specialized experience” ; (II) by striking “technical competence, capability” and inserting “technical competence; “(ii) capability” ; (III) by striking “to perform, past performance” and inserting “to perform; “(iii) past performance” ; and (IV) by striking “the team) and other appropriate” and inserting “the team); and “(iv) other appropriate” ; (iv) in subparagraph (B), as designated by clause (ii), by inserting “Relative importance of evaluation factors and subfactors.—” before “Each solicitation”; (v) in subparagraph (C), as designated by clause (ii), by inserting “Evaluation of proposals.—” before “The agency”; (D) in paragraph (4)— (i) by striking “The contracting officer” and inserting “Selection by contracting officer.—” “(A) Number of offerors selected and what is to be evaluated.— The contracting officer” ; (ii) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (iii) in clause (ii), as so redesignated, by striking “paragraphs (2), (3), and (4) of section 2305(a)” and inserting “subsections (b), (c), and (d) of section 3206”; (iv) by designating the last sentence in that paragraph as subparagraph (B) and indenting that subparagraph two ems from the left margin; and (v) in subparagraph (B), as redesignated by clause (iv), by striking “subparagraphs (A) and (B)” and inserting “clauses (i) and (ii) of subparagraph (A)”; and (E) in paragraph (5)— (i) by inserting “Awarding of contract.—” before “The agency”; and (ii) by striking “section 2305(b)(4)” and inserting “section 3303”. (c) Transfer of Section 2384a of Title 10.— Section 2384a of such title is transferred to chapter 223 of such title, inserted after section 3241, as transferred and redesignated by subsection (b), redesignated as section 3242, and amended as follows: (1) Subsection (a).— Subsection (a) is amended— (A) by striking “(1) An agency” and inserting “Quantity to Procure.—” “(1) An agency” ; (B) by striking “section 2303(a)” and inserting “section 3063”; (C) by striking “quantity as (A) will result in” and inserting “quantity as— “(A) will result in” ; (D) by striking “where practicable, and (B) does not” “where practicable; and “(B) does not” ; and (E) by indenting paragraph (2) two ems from the left margin. (2) Subsection (b).— Subsection (b) is amended by inserting “Opinion of Offeror With Respect to Quantity to Be Procured.—” before “Each solicitation for”. (d) Transfer of Section 2319 of Title 10.— Section 2319 of such title is transferred to chapter 223 of such title, inserted after section 3242, as transferred and redesignated by subsection (c), redesignated as section 3243, and amended as follows: (1) Section heading.— The heading of such section is amended to read as follows: “§ 3243. Encouragement of new competitors: qualification requirement” . (2) Subsection (a).— Subsection (a) is amended by inserting “Qualification Requirement Defined.—” before “In this section”. (3) Subsection (b).— Subsection (b) is amended— (A) by inserting “Actions Before Establishing Qualification Requirement.—” before “Except as provided”; and (B) in paragraph (5), by striking “clause (4)” and inserting “paragraph (4)”. (4) Subsection (c).— Subsection (c) is amended— (A) by striking “(1) Subsection (b) of this section” and inserting “ Applicability, Waiver Authority, and Referral of Offers.— “(1) Applicability.— Subsection (b)” ; (B) by indenting paragraphs (2) through (6) two ems from the left margin; (C) in paragraph (2)— (i) by striking “(A) Except as provided in subparagraph (B),” and inserting “ Waiver Authority.— “(A) Submission of determination of unreasonableness.— Except as provided in subparagraph (C),” ; (ii) by redesignating subparagraph (B) as subparagraph (C); (iii) by designating the second sentence of subparagraph (A) as subparagraph (B); (iv) in subparagraph (B), as so designated, by inserting “Authority to grant waiver.—” before “After considering”; and (v) in subparagraph (C), as redesignated by clause (ii), by inserting “Inapplicability to qualified products list.—” before “The waiver”; (D) in paragraph (3), by inserting “Submission and consideration of offer not to be denied in certain cases.—” before “A potential offeror”; (E) in paragraph (4), by inserting “Referral to small business administration.—” before “Nothing contained in this”; (F) in paragraph (5), by inserting “Delay of procurement not required.—” before “The head of”; and (G) in paragraph (6), by inserting “Requirements before enforcement of certain lists.—” before “The requirements of”. (5) Subsection (d).— Subsection (d) is amended— (A) by striking “(1) If the number of” and inserting “ Fewer Than 2 Actual Manufacturers.— “(1) Solicitation and testing of additional sources or products.— If the number of” ; (B) by redesignating paragraph (2) as paragraph (3), indenting that paragraph two ems from the left margin, and inserting “Certification required.—” before “The head of”; (C) in paragraph (1)(B)— (i) by inserting “subject to paragraph (2),” before “bear the cost of”; and (ii) by striking “that requirement, but such costs may be borne” and inserting “that requirement.”; (D) by designating as paragraph (2) the text of paragraph (1)(B), as so amended, that begins “only if the head of the agency”; (E) in paragraph (2), as designated by subparagraph (D), by inserting “Certification when agency may bear cost.—Costs may be borne under paragraph (1)(B)” before “only if”; and (F) by moving subparagraphs (A) and (B) of paragraph (1) (as amended) two ems to the right. (6) Subsection (e).— Subsection (e) is amended by inserting “Examination and Revalidation of Qualification Requirement.—” before “Within seven years”. (7) Subsection (f).— Subsection (f) is amended by inserting “Restriction on Enforcement.—” before “Except in an”. (e) Transfer of Section 2381.— Section 2381 of title 10, United States Code, is transferred to chapter 223 of such title, as added by this section, inserted after section 3243, as transferred and redesignated by subsection (d), and redesignated as section 3247. (f) Transfer of Section 2318.— Section 2318 of title 10, United States Code, is transferred to chapter 223 of such title, as added by this section, inserted after section 3247, as transferred and redesignated by subsection (e), redesignated as section 3249, and amended by striking “section 2303(a)” and inserting “section 3063”. (g) Transfer of Section 2339a.— Section 2339a of such title is transferred to chapter 223 of such title, inserted after section 3249, as added by subsection (f), redesignated as section 3252, and amended— (1) in subsection (b)(3)(A), by striking “section 2304(f)(3)” and inserting “section 3204(e)(2)”; (2) in subsection (e)(2)(A), by striking “section 2319” and inserting “section 3243”; and (3) in subsection (e)(3)— (A) in subparagraph (A), by striking “section 2305(a)(1)(C)(ii)” and “section 2305(a)(2)(A)” and inserting “section 3206(a)(3)(B)” and “section 3206(b)(1)”, respectively; and (B) in subparagraph (B), by striking “section 2304c(d)(3)” and inserting “section 3406(d)(3)”. (h) Placeholder for Chapter for Provisions Relating to Planning and Solicitations Relating to Particular Items or Services.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 223, as added by this section, the following new chapter: “CHAPTER 225— PLANNING AND SOLICITATION RELATING TO PARTICULAR ITEMS OR SERVICES “Sec. “3271. [Reserved].”. Subtitle C— Contracting Methods and Contract Types SEC. 1816. AWARDING OF CONTRACTS. (a) Tables of Chapters Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of Public Law 115–232), of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the items relating to chapters 241 and 243 and inserting the following: “241. Awarding of Contracts “242. Specific Types of Contracts “243. Other Matters Relating to Awarding and Types of Contracts “244. Undefinitized Contractual Actions (b) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3301, prec. 3351. is amended by striking chapters 241 and 243 and inserting the following: “CHAPTER 241— AWARDING OF CONTRACTS “Sec. “3301. Basis of award and rejection. “3302. Sealed bids. “3303. Competitive proposals. “3304. Post-award debriefings. “3305. Pre-award debriefings. “3306. Encouragement of alternative dispute resolution. “3307. Antitrust violations. “3308. Protests. “3309. Prohibition on release of contractor proposals.”. (c) Transfer of Subsection (b) of Section 2305.— (1) Transfer.— Subsection (b) of section 2305 of title 10, United States Code, is transferred to chapter 241 of such title, as amended by subsection (b), inserted after the table of sections, and amended by striking the subsection designation. (2) Insertion of section headings.— Such chapter is further amended— (A) by inserting before paragraph (1) the following: “§ 3301. Basis of award and rejection” ; (B) by inserting before paragraph (3) the following: “§ 3302. Sealed bids” ; (C) by inserting before paragraph (4) the following: “§ 3303. Competitive proposals” ; (D) by inserting before paragraph (5) the following: “§ 3304. Post-award debriefings” ; (E) by inserting before paragraph (6) the following: “§ 3305. Pre-award debriefings” ; (F) by inserting before paragraph (8) the following: “§ 3306. Encouragement of alternative dispute resolution” ; and (G) by inserting before paragraph (9) the following: “§ 3307. Antitrust violations” . (3) Amendments to new 3301.— Section 3301 of such title, as designated by paragraph (2), is amended— (A) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively; (B) in subsection (a), as so redesignated, by inserting “Award.—” before “The head of”; and (C) in subsection (b), as so redesignated, by inserting “Rejection.—” before “All sealed bids”. (4) Amendments to new 3302.— Section 3302 of such title, as designated by paragraph (2), is amended— (A) by redesignating paragraph (3) as subsection (a); (B) by designating the second and third sentences as subsections (b) and (c), respectively; (C) in subsection (a), as so redesignated, by inserting “Opening of Bids.—” before “Sealed bids shall be”; (D) in subsection (b), as so designated— (i) by inserting “Criteria for Awarding Contract.—” before “The head of the agency”; (ii) by striking “paragraph (1)” and inserting “section 3301(a) of this title”; and (iii) by striking “paragraph (2)” and inserting “section 3301(b) of this title”; and (E) in subsection (c), as so designated, by inserting “Notice of Award.—” before “The award of”. (5) Amendments to new 3303.— Section 3303 of such title, as designated by paragraph (2), is amended— (A) by striking the paragraph designation; (B) redesignating subparagraphs (A), (B), and (C) as subsections (a), (b), and (c), respectively; (C) by designating the second sentence of subsection (c), as so redesignated, as subsection (d); (D) in subsection (a), as so redesignated— (i) by inserting “Evaluation and Award.—” before “The head of”; (ii) by striking “paragraph (1)” and inserting “section 3301(a) of this title”; and (iii) by redesignating clauses (i) and (ii) as paragraphs (1) and (2), respectively; (E) in subsection (b), as so redesignated— (i) by inserting “Limit on Number of Proposals.—” before “If the contracting officer”; and (ii) by striking “subparagraph (A)(i)” and inserting “subsection (a)(1)”; (F) in subsection (c), as so redesignated— (i) by inserting “Criteria for Awarding Contract.—” before “Except as provided in”; and (ii) by striking “paragraph (2)” and inserting “section 3301(b) of this title”; and (G) in subsection (d), as so designated— (i) by inserting “Notice of Award.—” before “The head of”; and (ii) by striking “This subparagraph” and inserting “This subsection”. (6) Amendments to new 3304.— Section 3304 of such title, as designated by paragraph (2), is amended— (A) by striking the paragraph designation; (B) by redesignating subparagraphs (A), (B), (D), (E), and (F) as subsections (a), (c), (d), (e), and (f), respectively; (C) by designating the second sentence of subsection (a), as so redesignated, as subsection (b); (D) by redesignating subparagraph (C) as paragraph (2); (E) in subsection (a), as so redesignated, by inserting “Request for Debriefing.—” before “When a”; (F) in subsection (b), as designated by subparagraph (C), by inserting “When Debriefing to Be Conducted.—” before “The head of”; (G) in subsection (c), as so redesignated by subparagraph (B)— (i) by inserting “Information to Be Provided.—(1)” before “The debriefing shall include”; (ii) by redesignating clauses (i) through (vii) as subparagraphs (A) through (G), respectively; and (iii) in paragraph (2), as redesignated by subparagraph (D), by striking “subparagraph (B)(vii)” and inserting “paragraph (1)(G)”; (H) in subsection (d), as so redesignated, by inserting “Information Not to Be Included.—” before “The debriefing”; (I) in subsection (e), as so redesignated— (i) by inserting “Inclusion of Statement in Solicitation.—” before “Each solicitation”; and (ii) by striking “subparagraph (B)” and inserting “subsection (c)”; (J) in subsection (f), as so redesignated— (i) by inserting “After Successful Protest.—” before “If, within one year”; and (ii) by redesignating clauses (i) and (ii) as paragraphs (1) and (2), respectively; and (K) by adding at the end a new subsection (g) with the same heading and text as subsection (f) of section 3305 of such title, as amended by paragraph (7)(J). (7) Amendments to new 3305.— Section 3305 of such title, as designated by paragraph (2), is amended— (A) by striking “(6)”; (B) by redesignating paragraph (7) as subsection (f); (C) redesignating subparagraphs (A), (B), (C), and (D) as subsections (a), (c), (d), and (e), respectively; (D) by designating the second sentence of subsection (a), as so redesignated, as subsection (b); (E) in subsection (a), as so redesignated, by inserting “Request for Debriefing.—” before “When the”; (F) in subsection (b), as designated by subparagraph (D), by inserting “When Debriefing to Be Conducted.—” before “The contracting officer”; (G) in subsection (c), as so redesignated— (i) by inserting “Precondition for Post-award Debriefing.—” before “The contracting officer”; (ii) by striking “paragraph (5)” and inserting “section 3304 of this title” ; and (iii) by striking “subparagraph (A)” and inserting “subsections (a) and (b)”; (H) in subsection (d), as so redesignated— (i) by inserting “Information to Be Provided.—” before “The debriefing”; (ii) by striking “subparagraph (A)” and inserting “subsections (a) and (b)”; and (iii) by redesignating clauses (i), (ii), and (iii) as paragraphs (1), (2), and (3), respectively; (I) in subsection (e), as so redesignated— (i) by inserting “Information Not to Be Disclosed.—” before “The debriefing”; and (ii) by striking “subparagraph (A)” and inserting “subsections (a) and (b)”; and (J) in subsection (f), as redesignated by subparagraph (B)— (i) by inserting “Summary to Be Included in File.—” before “The contracting officer”; and (ii) by striking “under paragraph (5) or (6)” and inserting “this section”. (8) Amendment to new 3306.— Section 3306 of such title, as designated by paragraph (2), is amended by striking the paragraph designation. (9) Amendment to new 3307.— Section 3307 of such title, as designated by paragraph (2), is amended by striking the paragraph designation. (d) New Sections.— Such chapter is further amended by adding at the end the following new sections: “§ 3308. Protests “§ 3309. Prohibition on release of contractor proposals” . (e) Transfer of Subsections (e) and (f) of Section 2305.— (1) Transfer.— Subsections (e) and (f) of section 2305 of title 10, United States Code, are transferred to section 3308 of such title, as added by subsection (d), inserted after the section heading, and redesignated as subsections (a) and (b), respectively. (2) Amendment to new 3308(a).— Subsection (a) of such section 3308, as redesignated by paragraph (1), is amended— (A) by striking “File.—(1) If, in the” and inserting “ File.— “(1) Establishment and access.— If, in the” ; (B) in paragraph (2), by inserting “Redacted information.—” before “Information exempt”; and (C) by realigning paragraph (2) 2 ems to the right. (f) Transfer of Subsection (g) of Section 2305.— (1) Transfer and internal redesignations.— Subsection (g) of section 2305 of title 10, United States Code, is transferred to section 3309 of such title, as added by subsection (d), inserted after the section heading, and amended— (A) by striking the subsection designation and heading; (B) by redesignating paragraphs (1), (2), and (3) as subsections (b), (c), and (a), respectively; and (C) by transferring subsection (a), as so redesignated, within that section so as to appear before subsection (b), as so redesignated. (2) Amendment to new 3309(a).— Subsection (a) of such section 3309, as redesignated and transferred by paragraph (1), is amended by striking “In this subsection,” and inserting “Definition.—In this section,”. (3) Amendments to new 3309(b).— Subsection (b) of such section 3309, as redesignated by paragraph (1), is amended— (A) by inserting “Prohibition.—” before “Except as provided in”; (B) by striking “paragraph (2),” and inserting “subsection (c),”; and (C) by striking “section 2303” and inserting “section 3063”. (4) Amendments to new 3309(c).— Subsection (c) of such section 3309, as redesignated by paragraph (1), is amended by striking “Paragraph (1)” and inserting “Inapplicability.—Subsection (b)”. SEC. 1817. SPECIFIC TYPES OF CONTRACTS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 241, as added by the preceding section, the following new chapter: “CHAPTER 242— SPECIFIC TYPES OF CONTRACTS “Sec. “3321. Contracts awarded using procedures other than sealed-bid procedures. “3322. Cost contracts. “3323. Cost-plus contracting prohibited for military construction and military family housing projects. “3324. Preference for fixed-price contracts. “§ 3321. Contracts awarded using procedures other than sealed-bid procedures “§ 3322. Cost contracts “§ 3323. Cost-plus contracting prohibited for military construction and military family housing projects “§ 3324. Preference for fixed-price contracts “[Reserved].” . 10 USC 3324. (b) Transfer of Subsections (a) and (b) of Section 2306.— Subsections (a) and (b) of section 2306 of title 10, United States Code, are transferred to section 3321 of such title, as added by subsection (a), and inserted after the section heading. (c) Transfer of First Sentence of Subsection (a).— The first sentence of such subsection (a) is further transferred to section 3322 of such title, as added by subsection (a), inserted after the section heading, and designated as subsection (a). (d) Amendments to New 3321.— (1) New 3321(a).— Subsection (a) of such section 3321 (as amended by subsection (c)) is amended— (A) by inserting “Authorized Types.—” before “Subject to”; (B) by striking “the preceding sentence” and inserting “section 3322(a) of this title”; (C) by striking “this section” and inserting “this chapter”; and (D) by striking “under this chapter” and inserting “under chapter 137 legacy provisions”. (2) New 3321(b).— Subsection (b) of such section 3321 is amended— (A) by striking “Each contract awarded” and inserting “ Required Warranty. — “(1) Content.— Each contract awarded” ; (B) by striking “under this chapter” and inserting “under chapter 137 legacy provisions”; (C) by striking “maintained by him” and inserting “maintained by the contractor”; (D) by designating the second and third sentences as paragraphs (2) and (3), respectively, and realigning those paragraphs 2 ems to the right; (E) in paragraph (2), as so designated— (i) by inserting “Remedy for Breaking Warranty.—” before “If a contractor”; and (ii) by striking “the United States may annul the contract without liability or may deduct” and inserting “the United States— “(A) may annul the contract without liability; or “(B) may deduct” ; and (F) in paragraph (3), as so designated— (i) by inserting “Inapplicability to Certain Contracts.—” before “This subsection”; (ii) by striking “does not apply to a contract that is for an amount not greater than the simplified acquisition threshold or to a contract” and inserting “does not apply— “(A) to a contract that is for an amount not greater than the simplified acquisition threshold; or “(B) to a contract” . (e) Transfer of Subsections (d) and (e) of Section 2306.— Subsections (d) and (e) of section 2306 of title 10, United States Code, are transferred to section 3322 of such title, as amended by subsections (b) and (c), inserted at the end, and redesignated as subsections (b) and (c), respectively. (f) Amendments to New 3322.— (1) New 3322(a).— Subsection (a) of such section 3322, as transferred and designated by subsection (c), is amended by inserting “Cost-plus-a-percentage-of-cost System of Contracting Prohibited.—” before “The cost-plus-a-percentage-of-cost system”. (2) New 3322(b).— Subsection (b) of such section 3322, as transferred and redesignated by subsection (e), is amended by inserting “Cost-plus-a-fixed-fee Contracts.—” before “The fee for performing a cost-plus-a-fixed-fee contract for experimental”. (3) New 3322(c).— Subsection (c) of such section 3322, as transferred and redesignated by subsection (e), is amended— (A) by striking “(1) Except as” and inserting “ Advance Notice of Certain Subcontracts.— “(1) In general.— Except as” ; and (B) in paragraph (2)— (i) by inserting “Exception.—” before “Paragraph (1)”; and (ii) by realigning that paragraph 2 ems to the right. (g) Transfer of Subsection (c) of Section 2306.— (1) Transfer.— Subsection (c) of section 2306 of title 10, United States Code, is transferred to section 3323 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by designating the second sentence as subsection (b). (2) Amendment to new 3323(a).— Subsection (a) of such section 3323, as so transferred and redesignated, is amended by inserting “Prohibition.—” before “A contract entered into”. (3) Amendments to new 3323(b).— Subsection (b) of such section 3323, as designated by paragraph (1), is amended— (A) by striking “This” and inserting “Applicability.—The”; (B) by striking “prohibition is in addition to the prohibition specified in subsection (a)” and inserting “prohibition specified in subsection (a)— “(1) is in addition to the prohibition specified in section 3322(a) of this title” ; and (C) by striking “system of contracting and applies notwithstanding” and inserting “system of contracting; and “(2) applies notwithstanding.” . (h) Cross-reference Amendment.— Section 2343 of title 10, United States Code, is amended by striking “2306(a), 2306(b), 2306(e)” and inserting “3351, 3352(a), 3352(c)”. SEC. 1818. OTHER MATTERS RELATING TO AWARDING OF CONTRACTS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 242, as added by the preceding section, the following new chapter: “CHAPTER 243— OTHER MATTERS RELATING TO AWARDING OF CONTRACTS “Sec. “3341. [Reserved]. “3342. [Reserved]. “3343. [Reserved]. “3344. Disclosure of identity of contractor. “3345. Contract authority for advanced development of initial or additional prototype units.”. (b) Transfer of Section 2316.— Section 2316 of title 10, United States Code, is transferred to chapter 243 of such title, as added by subsection (a), inserted after the table of sections, and redesignated as section 3344.”. (c) Transfer of Section 2302e.— Section 2302e of title 10, United States Code, is transferred to chapter 243 of such title, inserted after section 3344, as transferred and redesignated by subsection (b), redesignated as section 3345, and amended in subsection (a) by striking “section 2302(2)(B)” and inserting “section 3012(2)”. SEC. 1819. UNDEFINITIZED CONTRACTUAL ACTIONS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 243, as added by the preceding section, the following new chapter: “CHAPTER 244— UNDEFINITIZED CONTRACTUAL ACTIONS “Sec. “3371. Undefinitized contractual actions: required description of anticipated effect on military department requirements if use of undefinitized contractual action results in delay. “3372. Undefinitized contractual actions: requirements and limitations relating to definitization of contractual terms, specifications, and price. “3373. Undefinitized contractual actions: limitation on inclusion of non-urgent requirements and on modification of scope. “3374. Undefinitized contractual actions: allowable profit. “3375. Undefinitized contractual actions: time limit. “3376. [Reserved]. “3377. Inapplicability to Coast Guard and National Aeronautics and Space Administration; definitions. “§ 3371. Undefinitized contractual actions: required description of anticipated effect on military department requirements if use of undefinitized contractual action results in delay “§ 3372. Undefinitized contractual actions: requirements and limitations relating to definitization of contractual terms, specifications, and price “§ 3373. Undefinitized contractual actions: limitation on inclusion of non-urgent requirements and on modification of scope “§ 3374. Undefinitized contractual actions: allowable profit “§ 3375. Undefinitized contractual actions: time limit “§ 3377. Inapplicability to Coast Guard and National Aeronautics and Space Administration; definitions” . (b) Transfer of Subsection (a) of Section 2326.— Subsection (a) of section 2326 of title 10, United States Code, is transferred to section 3371 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (c) Transfer of Subsections (b), (c), and (h) of Section 2326.— (1) Transfer.— Subsections (b), (c), and (h) of section 2326 of title 10, United States Code, are transferred to section 3372 of such title, as added by subsection (a), inserted (in that order) after the section heading, and redesignated as subsections (a), (b), and (c), respectively. (2) Amendments to new 3372(a).— Subsection (a) of such section 3372, as transferred and redesignated by paragraph (1), is amended— (A) by striking “Limitations on Obligation of Funds.—(1) A contracting officer” and inserting “ Contractual Action to Provide Time for Definitization of Contractual Terms, Specifications, and Price; Limitations on Obligation of Funds.— “(1) Terms for time for definitization to be included in contractual action.— A contracting officer” ; (B) by redesignating paragraphs (2) and (3) as subparagraphs (A) and (B), respectively, and realigning those subparagraphs 4 ems to the right; (C) by inserting before subparagraph (A), as so redesignated and realigned, the following: “(2) Limitation on obligation of funds before definitization.— ” ; (D) in such subparagraph (A), as so redesignated, by striking “Except as provided in paragraph (3),” and inserting “50 percent limitation.—Except as provided in subparagraph (B),”; (E) in such subparagraph (B), as so redesignated and realigned— (i) by inserting “75 percent limitation when contractor submits qualifying proposal.—” before “If a contractor”; and (ii) by striking “subsection (h)” and inserting “section 3377(b) of this title”; (F) by redesignating paragraph (4) as paragraph (3) and inserting “Waiver authority.—” in that paragraph before “The head of”; and (G) by redesignating paragraph (5) as paragraph (4) and inserting “Inapplicability with respect to purchase of initial spares.—” in that paragraph before “This subsection does not”. (3) Amendment to new 3372(b).— Subsection (b) of such section 3372, as transferred and redesignated by paragraph (1), is amended by striking “subsection (b)(1)” and inserting “subsection (a)(1)”. (4) Amendments to new 3372(c).— Subsection (c) of such section 3372, as transferred and redesignated by paragraph (1), is amended— (A) by striking “Contracts.—(1) Except as provided in” and inserting “ Contracts.— “(1) 180-day requirement.— Except as provided in” ; (B) by striking “subsection (b)(1)(A)” and inserting “subsection (a)(1)(A)”; (C) by realigning paragraph (2) 2 ems to the right; and (D) in paragraph (2)— (i) by inserting “Waiver authority.—” before “The requirement”; and (ii) by striking “subsection (b)(4)” and inserting “subsection (a)(3)”. (d) Transfer of Subsections (d) and (e) of Section 2326.— Subsections (d) and (e) of section 2326 of title 10, United States Code, are transferred to section 3373 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsections (a) and (b), respectively. (e) Transfer of Subsection (f) of Section 2326.— (1) Transfer.— Subsection (f) of section 2326 of title 10, United States Code, is transferred to section 3374 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively. (2) Amendments to new 3374(a).— Subsection (a) of such section 3374, as so transferred and redesignated, is amended— (A) by inserting “Allowed Profit to Reflect Certain Reduced Cost Risks of Contractor.—” before “The head of an agency”; and (B) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (3) Amendment to new 3374(b).— Subsection (b) of such section 3374, as so transferred and redesignated, is amended by inserting “Date as of Which Contractor Cost Risk to Be Determined.—” before “If a contractor”. (f) Transfer of Subsection (g) of Section 2326.— Subsection (g) of section 2326 of title 10, United States Code, is transferred to section 3375 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (g) Transfer of Subsections (i) and (j) of Section 2326.— Subsections (i) and (j) of section 2326 of title 10, United States Code, are transferred to section 3377 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsections (a) and (b), respectively, and amended by striking “section” in each such subsection and inserting “chapter”. SEC. 1820. TASK AND DELIVERY ORDER CONTRACTS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3401. is amended by striking chapter 245 and inserting the following: “CHAPTER 245— TASK AND DELIVERY ORDER CONTRACTS (MULTIPLE AWARD CONTRACTS) “Sec. “3401. Task and delivery order contracts: definitions. “3402. [Reserved]. “3403. Task and delivery order contracts: general authority. “3404. Guidance on use of task and delivery order contracts. “3405. Task order contracts: advisory and assistance services. “3406. Task and delivery order contracts: orders.”. (b) Transfer of Section 2304d.— (1) Transfer.— Section 2304d of title 10, United States Code, is transferred to chapter 245 of such title, as amended by subsection (a), inserted after the table of sections, redesignated as section 3401, and amended by striking “In sections 2304a, 2304b, and 2304c of this title” and inserting “In this chapter”. (2) Order of definition paragraphs.— Paragraphs (1) and (2) of such section 3401, as so transferred and redesignated, are reversed in order and redesignated accordingly. (3) Amendments to new 3401(1).— Paragraph (1) of such section, as so redesignated, is amended— (A) by inserting “Delivery order contract.—” before “The term”; (B) by striking “for property that does not” and inserting “for property— “(A) that does not” ; and (C) by striking “quantity) and that provides for” and inserting “quantity); and “(B) that provides for” . (4) Amendments to new 3401(2).— Paragraph (2) of such section, as so redesignated, is amended— (A) by inserting “Task order contract.—” before “The term”; (B) by striking “for services that does not” and inserting “for services— “(A) that does not” ; and (C) by striking “quantity) and that provides for” and inserting “quantity); and “(B) that provides for” . (c) Transfer of Section 2304a.— (1) Transfer.— Section 2304a of title 10, United States Code, is transferred to chapter 245 of such title, as amended by subsection (a), inserted after section 3401, as transferred and redesignated by subsection (b), and redesignated as section 3403. (2) Amendments to new 3403(a).— Subsection (a) of such section, as so redesignated, is amended— (A) by striking “section 2304c” and inserting “section 3406”; and (B) by striking “section 2304d” and inserting “section 3401”. (3) Amendments to new 3403(c).— Subsection (c) of such section, as so redesignated, is amended— (A) by striking “section only if an exception” and inserting “only if— “(1) an exception” ; (B) by striking “subsection (c) of section 2304” and inserting “subsection (a) of section 3204”; (C) by striking “the contract and the use of such” and inserting “the contract; and “(2) the use of such” ; and (D) by striking “subsection (f)” and inserting “subsection (e)”. (4) Amendments to new 3403(d).— Subsection (d) of such section, as so redesignated, is amended— (A) by striking “Contract Awards.—(1) The head of an agency” and inserting “ Contract Awards. — “(1) Exercise of authority.— The head of an agency” . (B) in paragraph (2)— (i) by inserting “Determination not required.—” before “No determination”; and (ii) by striking “section 2304(b)” and inserting “section 3203”; (C) in paragraph (3)— (i) by striking “(A) Except as” and inserting “When Single Source Awards for Task or Delivery Order Contracts Exceeding $100,000,000 Are Allowed.—(A) Except as”; and (ii) in subparagraph (B), by striking “section 2304(c)” and inserting “section 3204(a)”; and (D) in paragraph (4), by inserting “Regulations.—” before “The regulations”. (5) Amendments to new 3403(g).— Subsection (g) of such section, as so redesignated, is amended by striking “section 2304b” and inserting “section 3405”. (d) Transfer of Section 2304b.— (1) Transfer.— Section 2304b of title 10, United States Code, is transferred to chapter 245 of such title, as amended by subsection (a), inserted after section 3403, as transferred and redesignated by subsection (c), and redesignated as section 3405. (2) Internal redesignations.— Subsections (a), (b), (c), (d), (e), (f), (g), (h), and (i) of such section are redesignated as subsections (b), (c), (d), (e), (f), (g), (h), (i), and (a), respectively, and subsection (a), as so redesignated, is transferred to the beginning of such section so as to appear after the section heading. (3) Amendments to new 3405(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by striking “section 2304c” and inserting “section 3406”; and (B) by striking “section 2304d” and inserting “section 3401”. (4) Amendments to new 3405(e).— Subsection (e) of such section, as so redesignated, is amended— (A) by striking “and Contract.—(1) The solicitation” and inserting “ and Contract. — “(1) Solicitation.— The solicitation” ; (B) by striking “section 2304a(b)” and inserting “3403(b)”; and (C) by realigning paragraph (2) 2 ems to the right and inserting “Contract.—” in that paragraph before “A task order”. (5) Amendments to new 3405(f).— Subsection (f) of such section, as so redesignated, is amended— (A) by striking “Multiple Awards.—(1) The head of an agency” and inserting “ Multiple Awards.— “(1) Authority to make multiple awards.— The head of an agency” . (B) by realigning paragraphs (2) and (3) 2 ems to the right; (C) by inserting “Content of solicitation.—” in paragraph (2) before “If, in the case of”; and (D) by inserting “Nonapplication.—” in paragraph (3) before “Paragraph (2) does not”. (6) Amendments to new 3405(g).— Subsection (g) of such section, as so redesignated, is amended— (A) by striking “Contract Modifications.—(1) A task order may not” and inserting “ Contract Modifications. — “(1) Increase in scope, period, or maximum value of contract only by modification of contract.— A task order may not” . (B) by realigning paragraphs (2) and (3) 2 ems to the right; (C) in paragraph (2)— (i) by inserting “Use of competitive procedures.—” before “Unless use of”; (ii) by striking “subsection (c) of section 2304” and inserting “subsection (a) of section 3204”; and (iii) by striking “subsection (f)” and inserting “subsection (e)”; and (D) in paragraph (3), by inserting “Notice.—” before “Notice regarding”. (7) Amendments to new 3405(h).— Subsection (h) of such section, as so redesignated, is amended— (A) by striking “Contract Extensions.—(1) Notwithstanding the limitation” and inserting “ Contract Extensions.— “(1) When contract may be extended.— Notwithstanding the limitation” ; (B) in paragraph (1), by striking “subsection (b)” and “subsection (e)” and inserting “subsection (c)” and “subsection (f)”, respectively; and (C) by realigning paragraph (2) 2 ems to the right and inserting “Limit of one extension.—” in that paragraph before “A task order contract”. (e) Transfer of Section 2304c.— (1) Transfer.— Section 2304c of title 10, United States Code, is transferred to chapter 245 of such title, as amended by subsection (a), inserted after section 3405, as transferred and redesignated by subsection (d), and redesignated as section 3406. (2) Internal redesignations.— Subsections (a), (b), (c), (e), (f), and (g) of such section are redesignated as subsections (b), (c), (e), (f), (g), and (a), respectively, subsection (a), as so redesignated, is transferred to the beginning of such section so as to appear after the section heading, and subsection (e), as so redesignated, is transferred within such section so as to appear after subsection (d). (3) Amendments to new 3406(a).— Subsection (a) of such section, as so transferred and redesignated, is amended by striking “sections 2304a and 2304b” and inserting “sections 3403 and 3405”. (4) Amendment to new 3406(b).— Paragraph (2) of subsection (b) of such section, as so transferred and redesignated, is amended— (A) by striking “subsection (b)” and inserting “subsection (c)”; and (B) by striking “section 2304(f)” and inserting “section 3204(e)”. (5) Amendments to new 3406(c).— Subsection (c) of such section, as so transferred and redesignated, is amended— (A) by striking “section 2304a(d)(1) or 2304b(c)” and inserting “section 3403(d)(1)(B) or 3405(f)”; and (B) by striking “section 2304(c)” in paragraph (5) and inserting “section 3204(a)”. (6) Amendments to new 3406(d).— Subsection (d) of such section is amended— (A) by striking “subsection (b)” and inserting “subsection (c)”; and (B) by striking “section 2305(b)(5)” in paragraph (5) and inserting “section 3304”. (7) Amendments to new 3406(g).— Subsection (g) of such section is amended— (A) by striking “Ombudsman.—Each head of an agency” and inserting “ Ombudsman.— “(1) Appointment or designation and responsibilities.— Each head of an agency” . (B) by striking “section 2304a(d)(1)(B) or 2304b(e)” and inserting “section 3403(d)(1)(B) or 3405(f)”; (C) by striking “subsection (b)” and inserting “subsection (c)”; and (D) by designating the second sentence as paragraph (2) and inserting “Who is eligible.—” in that paragraph before “The task and delivery order”. SEC. 1821. ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES. (a) Transfer of Chapter 140.— (1) Transfer of chapter.— Chapter 140 of title 10, United States Code, 10 USC prec. 3451. is transferred to part V of subtitle A of that title 10, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), inserted in place of chapter 247 as enacted by that section, and redesignated as chapter 247. (2) Redesignation of sections.— Sections in chapter 247 of title 10, United States Code, as transferred and redesignated by paragraph (1), are redesignated as follows: Old Section No.New Section No. 23753452 23763451 23773453 23793455 23803456 2380a3457 (3) Table of sections.— The items in the table of sections at the beginning of such chapter 10 USC prec. 3451. are amended to conform to the redesignations made by paragraph (2). (4) Tables of chapters.— The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 2201. are amended by striking the item relating to chapter 140. (b) Amendments to Transferred Sections.— (1) Section 3451.— (A) Section 3451 of title 10, United States Code, as redesignated by subsection (a)(2), is transferred within chapter 247 of such title so as to appear after the table of sections at the beginning of such chapter (and before section 3452 as so redesignated). (B) The table of sections at the beginning of such chapter 10 USC prec. 3451. is amended to conform to the transfer made by subparagraph (A). (2) Section 3452.— Section 3452 of such title, as redesignated by subsection (a)(2), is amended by striking “section 2533a” and “section 2533b” in subsection (e)(2) and inserting “section 4862” and “section 4863”, respectively. (3) Section 3453.— Section 3453 of such title, as redesignated by subsection (a)(2), is amended by striking “section 2379” in subsection (d)(1) and inserting “section 3455”. (4) Section 3455.— Section 3455 of such title, as redesignated by subsection (a)(2), is amended by striking “section 2306a” in subsection (c)(1) and inserting “chapter 271”. (5) Section 3456.— Section 3456 of such title, as redesignated by subsection (a)(2), is amended by striking “section 2306a(b)(4)(B)” in subsection (b)(2)(B)(i) and inserting “section 3703(d)(2)”. (6) Section 3457.— Section 3457 of such title, as redesignated by subsection (a)(2), is amended— (A) by striking “section 2376(1)” in subsections (a) and (b) and inserting “section 3451(1)”; and (B) by striking “section 2302(9)” in subsections (a) and (b) and inserting “section 3014”. (7) Section incorporated into section 3457.— Such chapter is further amended— (A) by striking the heading of the final section of such chapter, as transferred by subsection (a); (B) in the text following such heading, by striking “Notwithstanding section 2376(1)” and inserting “(c) Commingled Items Purchased by Contractors.—Notwithstanding section 3451(1)”; and (C) in the table of sections at the beginning of the chapter, by striking the final item. SEC. 1822. MULTIYEAR CONTRACTS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3501. is amended by striking chapter 249 and inserting the following: “CHAPTER 249— MULTIYEAR CONTRACTS “Subchapter Sec. “I. Multiyear Contracts for Acquisition of Property “II. Multiyear Contracts for Acquisition of Services “III. Other Authorities Relating to Multiyear Contracts “SUBCHAPTER I— MULTIYEAR CONTRACTS FOR ACQUISITION OF PROPERTY “Sec. “3501. Multiyear contracts for acquisition of property: authority; definitions. “3502. Multiyear contracts for acquisition of property: regulations. “3503. Multiyear contracts for acquisition of property: contract cancellation or termination. “3504. Multiyear contracts for acquisition of property: participation by subcontractors, vendors, and suppliers. “3505. Multiyear contracts for acquisition of property: protection of existing authority. “3506. Department of Defense contracts: acquisition of weapon systems. “3507. Department of Defense contracts: defense acquisitions specifically authorized by law. “3508. Department of Defense contracts: notice to congressional committees before taking certain actions. “3509. Department of Defense contracts: multiyear contracts with value in excess of $500,000,000. “3510. Department of Defense contracts: additional matters with respect to multiyear defense contracts. “3511. Increased funding and reprogramming requests. “§ 3501. Multiyear contracts for acquisition of property: authority; definitions “§ 3502. Multiyear contracts for acquisition of property: regulations “§ 3503. Multiyear contracts for acquisition of property: contract cancellation or termination “§ 3504. Multiyear contracts for acquisition of property: participation by subcontractors, vendors, and suppliers “§ 3505. Multiyear contracts for acquisition of property: protection of existing authority “§ 3506. Department of defense contracts: acquisition of weapon systems “§ 3507. Department of defense contracts: defense acquisitions specifically authorized by law “§ 3508. Department of defense contracts: notice to congressional committees before taking certain actions “§ 3509. Department of defense contracts: multiyear contracts with value in excess of $500,000,000 “§ 3510. Department of defense contracts: additional matters with respect to multiyear defense contracts “§ 3511. Increased funding and reprogramming requests” . (b) Transfer of Subsection (a) of Section 2306b.— (1) Transfer.— Subsection (a) of section 2306b of title 10, United States Code, is transferred to section 3501 of such title, as added by subsection (a), and inserted after the section heading. (2) Conforming cross-reference amendment.— Paragraph (7) of such subsection (a), as so transferred, is amended by striking “subparagraphs (C) through (F) of subsection (i)(3)” and inserting “paragraphs (3) through (6) of section 3507(c) of this title”. (c) Transfer of Subsection (k) of Section 2306b.— (1) Transfer.— Subsection (k) of section 2306b of title 10, United States Code, is transferred to section 3501 of such title, as added by subsection (a), and inserted after subsection (a), as transferred by subsection (b), and redesignated as subsection (b). (2) Conforming amendment.— Such subsection (b), as so transferred and redesignated, is amended by striking “this section” and inserting “this subchapter”. (d) Transfer of Subsection (b) of Section 2306b.— (1) Transfer and internal redesignations.— Subsection (b) of section 2306b of title 10, United States Code, is transferred to section 3502 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and heading; and (B) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively. (2) Amendments to new 3502(a).— Subsection (a) of such section, as so redesignated, is amended— (A) by inserting “Requirement.—” before “Each official named”; (B) by striking “paragraph (2)” and inserting “subsection (b)”; and (C) by striking “subsection (a)” and inserting “section 3501 of this title”. (3) Amendments to new 3502(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by striking “(A) The Secretary of Defense” and inserting “ Officials Specified to Prescribe Regulations. — “(1) Department of defense.— The Secretary of Defense” ; (B) by redesignating subparagraphs (B) and (C) as paragraphs (2) and (3), respectively, and realigning those paragraphs 2 ems to the right; (C) in paragraph (2), as so redesignated, by inserting “Coast guard.—” before “The Secretary of Homeland”; and (D) in paragraph (3), as so redesignated, by inserting “NASA.—” before “The Administrator of”. (e) Transfer of Subsections (c), (f), and (g) of Section 2306b.— (1) Transfer.— Subsections (c), (f), and (g) of section 2306b of title 10, United States Code, are transferred to section 3503 of such title, as added by subsection (a), inserted (in that order) after the section heading, and redesignated as subsections (a), (b), and (c), respectively. (2) Amendment to new 3503(a).— Subsection (a) of such section 3503, as transferred and redesignated by paragraph (1), is amended by inserting “under section 3502 of this title” after “The regulations”. (3) Amendment to new 3503(b).— Subsection (b) of such section 3503, as transferred and redesignated by paragraph (1), is amended by striking “under this section” and inserting “under this subchapter”. (4) Amendments to new 3503(c).— Subsection (c) of such section 3503, as transferred and redesignated by paragraph (1), is amended— (A) by striking “Ceilings Exceeding” and all that follows through “Before any” and inserting “ Ceilings Exceeding $100,000,000 .— “(1) Before any” ; (B) by realigning paragraph (2) 2 ems to the right: (C) by striking “subsection (a)” in paragraphs (1) and (2) and inserting “section 3501(a) of this title”; and (D) in paragraph (2), by striking “required by” and all that follows through “give written” and inserting “required by section 3507(c) of this title, give written”. (f) Transfer of Subsection (d) of Section 2306b.— (1) Transfer.— Subsection (d) of section 2306b of title 10, United States Code, is transferred to section 3504 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and heading. (2) Amendments to new 3504.— Such section is further amended— (A) by inserting “under section 3502 of this title” after “the regulations”; and (B) in paragraph (1), by striking “subsection (a)” and inserting “section 3501(a) of this title”. (g) Transfer of Subsection (e) of Section 2306b.— (1) Transfer.— Subsection (e) of section 2306b of title 10, United States Code, is transferred to section 3505 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and heading. (2) Amendments to new 3505.— Such section is further amended— (A) by inserting “under section 3502 of this title” after “The regulations”; (B) by striking “this section” both places it appears and inserting “this subchapter”; and (C) in paragraph (1), by striking “such a contract” and inserting “a contract under section 3501(a) of this title”. (h) Transfer of Subsection (h) of Section 2306b.— (1) Transfer.— Subsection (h) of section 2306b of title 10, United States Code, is transferred to section 3506 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and heading. (2) Amendments to new 3506.— Such section is further amended— (A) by striking “subsection (a)” and inserting “section 3501(a) of this title”; and (B) by striking “this section” and inserting “this subchapter”. (i) Transfer of Subsection (i) of Section 2306b.— (1) Transfer.— Subsection (i) of section 2306b of title 10, United States Code, is transferred to section 3507 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and heading. (2) Internal redesignations and transfers.— Paragraphs (1), (2), (3), (4), (5), (6), and (7) of such section 3507 are redesignated as subsections (a), (b), (c), (f), (g), (d), and (e), respectively, and subsections (d) and (e), as so redesignated, are transferred within that section so as to appear after subsection (c), as so redesignated. (3) Amendments to new 3507(a).— Subsection (a) of such section, as so redesignated, is amended— (A) by inserting “Limitation.—” before “In the case of”; and (B) by striking “this section” and inserting “this subchapter”. (4) Amendments to new 3507(b).— Subsection (b) of such section, as redesignated by paragraph (2), is amended— (A) by inserting “Matters to Be Included in Request for Authorization.—” before “In submitting”; (B) by striking “this section” and inserting “this subchapter”; (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (D) in paragraph (1), as so redesignated, by striking “subsection (a)” and inserting “section 3501(a) of this title”; and (E) in paragraph (2), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”. (5) Amendments to new 3507(c).— Subsection (c) of such section, as redesignated by paragraph (2), is amended— (A) by inserting “Required Certification.—” before “A multiyear contract”; (B) by striking “this section” and inserting “this subchapter”; (C) by redesignating subparagraphs (A) through (G) as paragraphs (1) through (7), respectively; (D) in paragraph (1), as so redesignated, by striking “subsection (a)” and inserting “section 3501(a) of this title”; (E) in paragraph (2), as so redesignated, by striking “section” and all that follows through “of this title” and inserting “section 3226(b) of this title”; and (F) in paragraph (3), as so redesignated, by striking “section 2433(d)” and inserting “section 4374”. (6) Amendments to new 3507(d).— Subsection (d) of such section, as redesignated and transferred by paragraph (2), is amended— (A) by inserting “Authority When One or More Conditions Not Met.—” before “The Secretary may”; (B) by striking “paragraph (3)” and inserting “subsection (c)”; (C) by striking “not met, if the Secretary determines that” and inserting “not met, if— “(1) the Secretary determines that” ; and (D) by striking “of Defense and the Secretary provides” and inserting “of Defense; and “(2) the Secretary provides” . (7) Amendments to new 3507(e).— Subsection (e) of such section, as redesignated and transferred by paragraph (2), is amended— (A) by inserting “Limitation on Delegation.—” before “The Secretary may not”; (B) by striking “paragraph (3)” and inserting “subsection (c)”; and (C) by striking “paragraph (6)” and inserting “subsection (d)”. (8) Amendments to new 3507(f).— Subsection (f) of such section, as redesignated by paragraph (2), is amended— (A) by inserting “Requests for Relief From Specified Cost Savings.—” before “If for any”; and (B) by striking “this section” and inserting “this subchapter”. (9) Amendments to new 3507(g).— Subsection (g) of such section, as redesignated by paragraph (2), is amended— (A) by striking “(A) The Secretary may” and inserting “ Procurement of Complete and Usable End Items .— “(1) In general.— The Secretary may” ; (B) by redesignating subparagraph (B) as paragraph (2); and (C) in paragraph (2), as so redesignated— (i) by realigning the paragraph 2 ems to the right; and (ii) by inserting “Long-lead items.—” before “The Secretary may”. (j) Transfer of Subsection (l) of Section 2306b.— (1) Transfer to new sections 3508, 3509, and 3510.— (A) Transfers of certain paragraphs of 2306b to new 3509.— (i) Paragraph (3) of subsection (l) of section 2306b of title 10, United States Code, is transferred to section 3509 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (ii) Such section 3509 is further amended by adding at the end the following: “(b) Report Required Before Entering Into Contract Above Threshold.— ” . (iii) Paragraph (5) of subsection (l) of such section 2306b is transferred to section 3509 of such title, as added by subsection (a), inserted at the end of subsection (b), as added by clause (ii), and redesignated as paragraph (1). (iv) Paragraphs (4) and (9) of subsection (l) of such section 2306b are transferred to section 3509 of such title, as added by subsection (a), inserted (in that order) after paragraph (1) of subsection (b), as transferred and redesignated by clause (iii), and redesignated as paragraphs (2) and (3), respectively. (B) Transfer of certain paragraphs of 2306b to new 3510.— Paragraphs (2) and (7) of subsection (l) of such section 2306b are transferred to section 3510 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (b) and (c), respectively. (C) Transfer of remaining paragraphs of 2306b to new 3508.— Subsection (l) of such section 2306b (as amended by subparagraphs (A) and (B)) is transferred to section 3508 of such title, as added by subsection (a), inserted after the section heading, and amended— (i) by striking the subsection designation and subsection heading; and (ii) by redesignating paragraphs (1), (6), and (8) as subsections (a), (b), and (c), respectively. (2) Amendments to new 3508(a).— Subsection (a) of such section 3508, as transferred and redesignated by paragraph (1)(C), is amended— (A) by striking “(A) The head of an agency” and inserting “ Notice Before Award of Certain Contracts .— “(1) Required notice.— The head of an agency” ; (B) by striking “subparagraph (B)” and inserting “paragraph (2)”; (C) by redesignating subparagraph (B) as paragraph (2) and realigning that paragraph 2 ems to the right; and (D) in paragraph (2), as so redesignated— (i) by striking “subparagraph (A)” and inserting “Covered contracts.—Paragraph (1)”; (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (iii) by redesignating subclauses (I) and (II) of subparagraph (A), as so redesignated, as clauses (i) and (ii), respectively. (3) Amendment to new 3508(b).— Subsection (b) of such section 3508, as transferred and redesignated by paragraph (1)(C), is amended by inserting “Notice Before Terminating Multiyear Procurement Contract.—” before “The head of”. (4) Amendments to new 3508(c).— Subsection (c) of such section 3508, as transferred and redesignated by paragraph (1)(C), is amended by striking “This subsection does not” and inserting “Inapplicability to Noaa and Coast Guard.—This section and sections 3509 and 3510 of this title do not”. (5) Amendment to new 3509(a).— Subsection (a) of such section 3509, as transferred and redesignated by paragraph (1)(A)(i), is amended by inserting “Limitation.—” before “The head of”. (6) Amendments to new 3509(b).— Subsection (b) of such section 3509, as designated and amended by clauses (ii), (iii), and (iv) of paragraph (1)(A), is amended— (A) in paragraph (1)— (i) by inserting “In general.—” before “The head of”; and (ii) by striking “paragraph (4)” and inserting “paragraph (2)”; (B) in paragraph (2), by striking “Each report required by paragraph (5)” and inserting “Matter to be included in report.—Each report required by paragraph (1)”; and (C) in paragraph (3), by inserting “Definitions.—” before “In this”. (7) Amendment to new 3510(b).— Subsection (b) of such section 3510, as transferred and redesignated by paragraph (1)(B), is amended by inserting “Funding for Economic Order Quantity Advance Procurement.—” before “The head of”. (8) Amendment to new 3510(c).— Subsection (c) of such section 3510, as transferred and redesignated by paragraph (1)(B), is amended by inserting “Use of Present Value Analysis.—” before “The execution of”. (k) Transfer of Subsection (j) of Section 2306b to New 3510.— Subsection (j) of section 2306b of title 10, United States Code, is transferred to section 3510 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by striking the first word of the subsection heading. (l) Transfer of Subsection (m) of Section 2306b to New 3511.— Subsection (m) of section 2306b of title 10, United States Code, is transferred to section 3511 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; (2) by striking “this section” and inserting “this subchapter”; and (3) by striking “subsection (i)” and inserting “section 3507 of this title”. (m) New Subchapter.— Chapter 249 of title 10, United States Code, as amended by subsection (a), is amended by adding at the end the following new subchapter: “SUBCHAPTER II— MULTIYEAR CONTRACTS FOR ACQUISITION OF SERVICES “Sec. “3531. Multiyear contracts for acquisition of services: authority; definitions. “3532. Multiyear contracts for acquisition of services: applicable principles. “3533. Multiyear contracts for acquisition of services: contract cancellation or termination. “3534. Multiyear contracts for acquisition of services: contracts with value above $500,000,000 to be specifically authorized by law. “3535. Multiyear contracts for acquisition of services: notice to congressional committees before taking certain actions. “§ 3531. Multiyear contracts for acquisition of services: authority; definitions “§ 3532. Multiyear contracts for acquisition of services: applicable principles “§ 3533. Multiyear contracts for acquisition of services: contract cancellation or termination “§ 3534. Multiyear contracts for acquisition of services: contracts with value above $500,000,000 to be specifically authorized by law “§ 3535. Multiyear contracts for acquisition of services: notice to congressional committees before taking certain actions” . (n) Transfer of Subsections (a), (b), (f), and (h) of Section 2306c.— (1) Transfer.— Subsections (a), (b), (f), and (h) of section 2306c of title 10, United States Code, are transferred to section 3531 of such title, as added by subsection (n), and inserted (in that order) after the section heading, and subsections (f) and (h) are redesignated as subsections (c) and (d), respectively. (2) Amendment to new 3531(a).— Subsection (a) of such section 3531, as so transferred, is amended by striking “subsections (d) and (e)” and inserting “sections 3533 and 3534 of this title”. (3) Amendment to new 3531(c) & (d).— Subsections (c) and (d) of such section 3531, as so transferred and redesignated, are each amended by striking “this section” and inserting “this subchapter”. (o) Transfer of Subsection (c) of Section 2306c.— Subsection (c) of section 2306c of title 10, United States Code, is transferred to section 3532 of such title, as added by subsection (m), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “this section” and inserting “this subchapter”. (p) Transfer of Subsection (e) of Section 2306c.— Subsection (e) of section 2306c of title 10, United States Code, is transferred to section 3533 of such title, as added by subsection (m), inserted after the section heading, and redesignated as subsection (a). (q) Transfer of Paragraphs (4) & (5) of Subsection (d) of Section 2306c.— (1) Insertion of subsection (b) designation.— Such section 3533 is further amended by adding at the end the following: “(b) Contract Cancellation Ceilings Exceeding $100,000,000.— ” . (2) Transfer and redesignation of paragraphs.— Paragraphs (4) and (5) of subsection (d) of section 2306c of title 10, United States Code, are transferred to such section 3533 of such title, inserted at the end of subsection (b), as added by paragraph (1), and redesignated as paragraphs (1) and (2), respectively. (3) Amendment to new 3533(b)(1).— Paragraph (1) of such subsection (b), as so transferred and redesignated, is amended by striking “subsection (a)” and inserting “sections 3531(a) of this title”. (4) Amendment to new 3533(b)(2).— Paragraph (2) of such subsection (b), as so transferred and redesignated, is amended— (A) by striking “subsection (a)” and inserting “sections 3531(a) of this title”; and (B) by striking “paragraph (4)” and inserting “paragraph (1)”. (r) Transfer of Paragraph (2) of Subsection (d) of Section 2306c.— Paragraph (2) of subsection (d) of such section 2306c is transferred to section 3534 of such title, as added by subsection (m), inserted after the section heading, and amended— (1) by striking the paragraph designation; and (2) by striking “this section” and inserting “this subchapter”. (s) Transfer of Remainder of Subsection (d) of Section 2306c.— (1) Transfer.— Subsection (d) of such section 2306c (as amended by subsections (r) and (s)) is transferred to section 3535 of such title, as added by subsection (m), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1) and (3) as subsections (a) and (b), respectively. (2) Amendments to new 3535(a).— Subsection (a) of such section 3535, as so transferred and redesignated, is amended— (A) by inserting “Notice Before Award of Certain Contracts.—” before “The head of an agency”; and (B) by striking “this section” and inserting “this subchapter”. (3) Amendment to new 3535(b).— Subsection (b) of such section 3535, as so transferred and redesignated, is amended by inserting “Notice Before Terminating Multiyear Procurement Contract for Services.—” before “The head of an agency”. (t) Other Authorities.— (1) New subchapter.— Chapter 249 of title 10, United States Code, as amended by this section, is further amended by adding at the end the following new subchapter: “SUBCHAPTER III— OTHER AUTHORITIES RELATING TO MULTIYEAR CONTRACTS “Sec. “3551. Multiyear procurement authority: purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products.”. (2) Transfer of section 2410o.— Section 2410o of title 10, United States Code, is transferred to subchapter III of chapter 249 of such title, as added by paragraph (1), inserted after the table of sections, and redesignated as section 3551. SEC. 1823. SIMPLIFIED ACQUISITION PROCEDURES. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3551. is amended by striking chapter 251 and inserting the following: “CHAPTER 251— SIMPLIFIED ACQUISITION PROCEDURES “Sec. “3571. Simplified acquisition threshold. “3572. Implementation of simplified acquisition procedures. “3573. Micro-purchase threshold.”. (b) Transfer of Sections.— Section 2302a, 2302b, and 2338 of title 10, United States Code, are transferred to chapter 251 of such title, as amended by subsection (a), inserted (in that order) after the table of sections, and redesignated as sections 3571, 3572, and 3573, respectively. (c) Conforming Cross-reference Amendments.— (1) Section 3571 of such title, as so transferred and redesignated, is amended by striking “section 2303” in subsection (a) and inserting “section 3063”. (2) Section 3572 of such title, as so transferred and redesignated, is amended by striking “section 2303(a)” and inserting “section 3063”. SEC. 1824. RAPID ACQUISITION PROCEDURES. (a) Revised Chapter Outline.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3601. is amended by striking chapter 253 and inserting the following: “CHAPTER 253— RAPID ACQUISITION PROCEDURES “Subchapter “I. [Reserved] “II. [Reserved] (b) Clerical Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the item relating to chapter 253 and inserting the following new item: “253. Rapid Acquisition Procedures SEC. 1825. CONTRACTS FOR LONG-TERM LEASE OR CHARTER OF VESSELS, AIRCRAFT, AND COMBAT VEHICLES. (a) New Chapters.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 255 the following new chapters: “CHAPTER 257— CONTRACTS FOR LONG-TERM LEASE OR CHARTER OF VESSELS, AIRCRAFT, AND COMBAT VEHICLES “Sec. “3671. Requirement for authorization by law of certain contracts relating to vessels, aircraft, and combat vehicles. “3672. Requirement of specific authorization by law for appropriation, and for obligation and expenditure, of funds for certain contracts relating to aircraft, naval vessels, and combat vehicles. “3673. Limitation on indemnification. “3674. Long-term lease or charter defined; substantial termination liability. “3675. Capital lease or lease-purchase treated as an acquisition. “3676. Guidelines. “3677. Contracts for lease or use of vessels for a term of greater than two years but less than five years: prior notice to congressional committees. “3678. Contracts with terms of 18 months or more: limitation. “§ 3671. Requirement for authorization by law of certain contracts relating to vessels, aircraft, and combat vehicles “§ 3672. Requirement of specific authorization by law for appropriation, and for obligation and expenditure, of funds for certain contracts relating to aircraft, naval vessels, and combat vehicles “§ 3673. Limitation on indemnification “§ 3674. Long-term lease or charter defined; substantial termination liability “§ 3675. Capital lease or lease-purchase treated as an acquisition “§ 3676. Guidelines “§ 3677. Contracts for lease or use of vessels for a term of greater than two years but less than five years: prior notice to congressional committees “§ 3678. Contracts with terms of 18 months or more: limitation “CHAPTER 258— OTHER TYPES OF CONTRACTS USED FOR PROCUREMENTS FOR PARTICULAR PURPOSES “Sec. “3681. Leasing of commercial vehicles and equipment. “§ 3681. Leasing of commercial vehicles and equipment” . (b) Transfer of Subsections (a) and (b) of Section 2401.— Subsections (a) and (b) of section 2401 of title 10, United States Code, are transferred to section 3671 of such title, as added by subsection (a), and inserted after the section heading. (c) Transfer of Subsection (c)(2) of Section 2401.— Paragraph (2) of subsection (c) of such section 2401 is transferred to section 3673 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the paragraph designation; (2) by striking “this section” and inserting “this chapter”; and (3) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (d) Transfer of Subsection (c)(1) of Section 2401.— Subsection (c) of such section 2401 (as amended by subsection (c)), is transferred to section 3672 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended— (1) by striking “(1) Funds may not” and inserting “Limitation.—Funds may not”; and (2) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (e) Transfer of Subsection (e) of Section 2401.— Subsection (e) of section 2401 of such title, is transferred to section 3672 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by subsection (d), redesignated as subsection (b), and amended— (1) by striking “(1) Whenever a request” and inserting “Matter to Be Submitted to Congress.—(1) Whenever a request”; (2) in paragraph (2), by striking “subsection (g)” and inserting “section 3676 of this title”; and (3) in paragraph (3), by striking “this section” and inserting “this chapter”. (f) Transfer of Subsection (d) of Section 2401.— (1) Transfer.— Subsection (d) of section 2401 of such title is transferred to section 3674 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively. (2) Amendments to new 3674(a).— Subsection (a) of such section 3674, as so redesignated, is amended— (A) by striking “(A) In this section” and inserting “ Long-term Lease or Charter.— “(1) General rule.— “(A) In this chapter” ; (B) by striking “subparagraph (B)” and inserting “paragraph (2)”; and (C) by redesignating subparagraph (B) as paragraph (2); (D) by designating the sentence after clause (ii) of subparagraph (A) as subparagraph (B); and (E) in paragraph (2), as redesignated by subparagraph (C)— (i) by striking “In the case of” and inserting “ Special rule.— “(A) In the case of” ; and (ii) by designating the sentence after clause (ii) of subparagraph (A) as subparagraph (B). (3) Amendments to new 3674(b).— Subsection (b) of such section 3674, as so redesignated, is amended— (A) by inserting “Substantial Termination Liability.—” before “For the purposes of”; (B) by striking “this section” and inserting “this chapter”; (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; and (D) in paragraph (2), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (g) Transfer of Subsection (f) of Section 2401.— (1) Transfer.— Subsection (f) of section 2401 of such title is transferred to section 3675 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively. (2) Amendments to new 3675(a).— Subsection (a) of such section 3675, as so redesignated, is amended— (A) inserting “In General.—” before “If a lease or charter”; (B) by striking “this section” and inserting “this chapter”; and (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (3) Amendments to new 3675(b).— Subsection (b) of such section 3675, as so redesignated, is amended by striking “In this subsection” and inserting “Definitions.—In this section”. (h) Transfer of Subsection (g) of Section 2401.— Subsection (g) of section 2401 of such title is transferred to section 3676 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation. (i) Transfer of Subsection (h) of Section 2401.— Subsection (h) of section 2401 of such title is transferred to section 3677 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation. (j) Transfer of Subsection (b) of Section 2401a.— Subsection (b) of section 2401a of such title is transferred to section 3678 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (k) Transfer of Subsection (a) of Section 2401a.— Subsection (a) of section 2401a of such title is transferred to section 3681 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (l) Tables of Chapters Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by inserting after the item relating to chapter 255 the following new items: “257. Contracts for Long-Term Lease or Charter of Vessels, Aircraft, and Combat”. Subtitle D— General Contracting Provisions SEC. 1831. COST OR PRICING DATA. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115– 232), 10 USC prec. 3701. is amended by striking chapter 271 and inserting the following: “CHAPTER 271— TRUTHFUL COST OR PRICING DATA (TRUTH IN NEGOTIATIONS) “Sec. “3701. Definitions. “3702. Required cost or pricing data and certification. “3703. Exceptions. “3704. Cost or pricing data on below-threshold contracts. “3705. Submission of other information. “3706. Price reductions for defective cost or pricing data. “3707. Interest and penalties for certain overpayments. “3708. Right to examine contractor records. “§ 3701. Definitions “§ 3702. Required cost or pricing data and certification “§ 3703. Exceptions “§ 3704. Cost or pricing data on below-threshold contracts “§ 3705. Submission of other information “§ 3706. Price reductions for defective cost or pricing data “§ 3707. Interest and penalties for certain overpayments “§ 3708. Right to examine contractor records” . (b) Transfer of Subsection (h) of Section 2306a.— Subsection (h) of section 2306a of title 10, United States Code, is transferred to section 3701 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended— (1) by striking “this section” and inserting “this chapter”; and (2) in paragraph (1), by striking “subsection (e)(1)(B)” and inserting “section 3706(a)(2) of this title”. (c) Transfer of Subsection (a) of Section 2306a.— (1) Transfer.— Subsection (a) of section 2306a of title 10, United States Code, is transferred to section 3702 of such title, as added by subsection (a), inserted after the section heading, and amended by redesignating paragraphs (2) through (7) as subsections (b) through (g), respectively. (2) Conforming internal redesignations and insertion of headings in new 3702(a).— Such subsection (a), as so transferred and amended, is amended— (A) by striking “Required Cost or Pricing Data and Certification.—(1) the head of” and inserting “When Required.—The head of”; (B) by redesignating subparagraphs (A), (B), (C), and (D) as paragraphs (1), (2), (3), and (4), respectively; (C) in paragraph (1), as so redesignated— (i) by inserting “Offeror for prime contract.—” before “An offeror”; and (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (D) in paragraph (2), as so redesignated— (i) by inserting “Contractor.—” before “The contractor”; (ii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; (iii) in subparagraph (A), as so redesignated, by striking “subparagraph (A)(i)” and inserting “paragraph (1)(A)”; (iv) in subparagraph (B), as so redesignated, by striking “paragraph (6)” and inserting “subsection (f)”; and (v) in subparagraph (C), as so redesignated, by striking “clause (i) or (ii)” and inserting “subparagraph (A) or (B)”; (E) in paragraph (3), as so redesignated— (i) by inserting “Offeror for subcontract.—” before “An offeror”; (ii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; (iii) in subparagraph (A), as so redesignated, by striking “subparagraph (A)(i)” and inserting “paragraph (1)(A)”; (iv) in subparagraph (B), as so redesignated, by striking “paragraph (6)” and inserting “subsection (f)”; and (v) in subparagraph (C), as so redesignated, by striking “clause (i) or (ii)” and inserting “subparagraph (A) or (B)”; and (F) in paragraph (4), as so redesignated— (i) by inserting “Subcontractor.—” before “The subcontractor”; (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (iii) in the matter preceding subparagraph (A), as so redesignated, by striking “subparagraph (C)” and inserting “paragraph (3)”; (iv) in subparagraph (A), as so redesignated, by striking “subparagraph (C)(i)” and inserting “paragraph (3)(A)”; and (v) in subparagraph (B), as so redesignated, by striking “subparagraph (C)(iii)” and inserting “paragraph (3)(C)”. (3) Conforming amendments in new section 3702(a) to references to chapter 137.— Such subsection (a) is further amended by striking “a prime contract under this chapter” each place it appears and inserting “a prime contract under a chapter 137 legacy provision”. (4) Conforming internal redesignations and insertion of heading in new 3702(b).— Subsection (b) of section 3702, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “Certfication.—” before “A person required”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; and (C) by striking “subsection (c)” and inserting “section 3704 of this title”. (5) Conforming internal redesignations and insertion of heading in new 3702(c).— Subsection (c) of section 3702, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “To Whom Submitted.—” before “Cost or pricing data”; (B) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; and (C) in the matter preceding paragraph (1), as so redesignated— (i) by striking “paragraph (1) (or under subsection (c))” and inserting “subsection (a) (or under section 3704 of this title)”; and (ii) by striking “paragraph (2)” and inserting “subsection (b)”. (6) Conforming internal redesignations and insertion of heading in new 3702(d).— Subsection (d) of section 3702, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “Applicability of Chapter.—” before “Except as provided under”; and (B) by striking “subsection (b)” and inserting “section 3703 of this title”. (7) Conforming internal redesignations and insertion of heading in new 3702(e).— Subsection (e) of section 3702, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “Subcontracts Not Affected by Waiver.—” before “A waiver of”; (B) by striking “subsection (b)(1)(C)” and inserting “section 3703(a)(3) of this title”; (C) by striking “paragraph (1)(C)” and inserting “subsection (a)(3)”; and (D) by striking “that paragraph” and inserting “that subsection”. (8) Conforming internal redesignations and insertion of heading in new 3702(f).— Subsection (f) of section 3702, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “Modifications to Prior Contracts.—” before “Upon the request of”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; (C) by striking “that paragraph” and inserting “that subsection”; and (D) by striking “subparagraphs (B)(ii) and (C)(ii) of paragraph (1)” and inserting “paragraphs (2)(B) and (3)(B) of subsection (a)”. (9) Conforming internal redesignations and insertion of heading in new 3702(g).— Subsection (g) of section 3702, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “Adjustment of Amounts.—” before “Effective on”; and (B) by striking “paragraph (1)” and inserting “subsection (a)”. (d) Transfer of Subsection (b) of Section 2306a.— (1) Transfer.— Subsection (b) of section 2306a of title 10, United States Code, is transferred to section 3703 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1) through (6) as subsections (a) through (f), respectively, and realigning those subsections flush to the left margin. (2) Conforming internal redesignations in new 3703(a).— Subsection (a) of such section 3703, as so transferred and redesignated by paragraph (1), is amended— (A) by redesignating subparagraphs (A), (B), (C), and (D) as paragraphs (1), (2), (3), and (4), respectively; (B) in the matter preceding paragraph (1), as so redesignated, by striking “under subsection (a)” and inserting “under section 3702 of this title”; (C) in paragraph (1), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (D) in paragraph (3), as so redesignated, by striking “this section” and inserting “this chapter”; and (E) in paragraph (4), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (3) Conforming internal redesignations in new 3703(b).— Subsection (b) of such section 3703, as so transferred and redesignated by paragraph (1), is amended— (A) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (B) in the matter preceding paragraph (1), as so redesignated— (i) by striking “paragraph (1)(A) or (1)(B)” and inserting “paragraph (1) or (2) of subsection (a)”; and (ii) by striking “subsection (a)” and inserting “section 3702 of this title”; and (C) in paragraph (1), as so redesignated, by striking “paragraph (1)(A) or (1)(B)” and inserting “paragraph (1) or (2) of subsection (a)”. (4) Conforming internal redesignations in new 3703(c).— Subsection (c) of such section 3703, as so transferred and redesignated by paragraph (1), is amended— (A) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively; (B) in paragraph (1), as so redesignated— (i) by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”; (ii) by striking “subsection (a)(1)(A)(i)” and inserting “section 3702(a)(1)(A) of this title”; and (iii) by striking “subsection (a)(7)” and inserting “section 3702(g) of this title”; (C) in paragraph (2), as so redesignated, by striking “this paragraph” and inserting “this subsection”; and (D) in paragraph (3), as so redesignated— (i) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (ii) in the matter preceding subparagraph (A), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; and (ii) in subparagraph (A), as so redesignated, by striking “subparagraph (A) or (C) of paragraph (1)” and inserting “paragraph (1) or (3) of subsection (a)”. (5) Conforming internal redesignations in new 3703(d).— Subsection (d) of such section 3703, as so transferred and redesignated by paragraph (1), is amended— (A) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively; (B) in paragraph (1), as so redesignated, by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”; (C) in paragraph (2), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; and (D) in paragraph (3), as so redesignated— (i) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (ii) in the matter preceding subparagraph (A), as so redesignated, by striking “subparagraph (B)” and inserting “paragraph (2)”. (6) Conforming internal redesignations in new 3703(f).— Subsection (f) of such section 3703, as so transferred and redesignated by paragraph (1), is amended— (A) by striking “subsection (a)” and inserting “section 3702 of this title”; and (B) by striking “paragraph (1)(A)” and inserting “subsection (a)(1)”. (e) Transfer of Subsection (c) of Section 2306a.— (1) Transfer.— Subsection (c) of section 2306a of title 10, United States Code, is transferred to section 3704 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively, and realigning those subsections flush to the left margin. (2) Conforming internal redesignations in new 3704(a).— Subsection (a) of such section 3704, as so transferred and redesignated, is amended— (A) by striking “paragraph (2)” and inserting “subsection (b)”; (B) by striking “subsection (a)” and inserting “section 3702 of this title”; and (C) by striking “under this subsection” and inserting “under this section”. (3) Conforming internal redesignations in new 3704(b).— Subsection (b) of such section 3704, as so transferred and redesignated, is amended— (A) by striking “under this paragraph” and inserting “under this subsection”; and (B) by striking “subparagraph (A) or (B) of subsection (b)(1)” and inserting “paragraph (1) or (2) of section 3703(a) of this title”. (4) Conforming internal redesignations in new 3704(c).— Subsection (c) of such section 3704, as so transferred and redesignated, is amended by striking “under this paragraph” and inserting “under this subsection”. (f) Transfer of Subsection (d) of Section 2306a.— (1) Transfer.— Subsection (d) of section 2306a of title 10, United States Code, is transferred to section 3705 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively, and realigning those subsections flush to the left margin. (2) Conforming internal redesignations in new 3705(a).— Subsection (a) of such section 3705, as so transferred and redesignated, is amended— (A) by striking “under this section” and inserting “under this chapter”; and (A) by striking “subsection (b)(1)(A)” and inserting “section 3703(a)(1) of this title”. (3) Conforming internal redesignations in new 3705(b).— Subsection (b) of such section 3705, as so transferred and redesignated, is amended— (A) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (B) in paragraph (1), as so redesignated— (i) by redesignating clauses (i) through (vi) as subparagraphs (A) through (F), respectively; and (ii) in the matter preceding subparagraph (A), as so redesignated, by striking “paragraph (1)” and inserting “subsection (a)”; and (C) in paragraph (2), as so redesignated— (i) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (ii) in subparagraph (A), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”. (4) Conforming internal redesignations in new 3705(c).— Subsection (c) of such section 3705, as so transferred and redesignated, is amended— (A) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively; and (B) in the matter preceding paragraph (1), as so redesignated, by striking “under paragraph (1)” and inserting “under subsection (a)”. (g) Transfer of Subsection (e) of Section 2306a.— (1) Transfer.— Subsection (e) of section 2306a of title 10, United States Code, is transferred to section 3706 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1), (2), (3), and (4) as subsections (a), (b), (c), and (d), respectively. (2) Conforming internal redesignations in new 3706(a).— Subsection (a) of such section 3706, as so transferred and redesignated, is amended— (A) by striking “(A) A prime contract” and inserting “ Provision Requiring Adjustment. — “(1) In general.— A prime contract” ; (B) by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”; (C) by redesignating subparagraph (B) as paragraph (2); (D) by inserting “What constitutes defective cost or pricing data.—” before “For the purposes”; and (E) by striking “of this section” and inserting “of this chapter”. (3) Conforming internal redesignations in new 3706(b).— Subsection (b) of such section 3706, as so transferred and redesignated, is amended— (A) by inserting “Valid Defense.—” before “In determining for”; and (B) by striking “paragraph (1)” and inserting “subsection (a)”. (4) Conforming internal redesignations in new 3706(c).— Subsection (c) of such section 3706, as so transferred and redesignated, is amended— (A) by inserting “Invalid Defenses.—” before “It is not”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; (C) by redesignating subparagraphs (A), (B), (C), and (D) as paragraphs (1), (2), (3), and (4), respectively; (D) in paragraph (1), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (E) in paragraph (4), as so redesignated, by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”. (5) Conforming internal redesignations in new 3706(d).— Subsection (d) of such section 3706, as so transferred and redesignated, is amended— (A) by striking “(A) A contractor shall” and inserting “ Offsets .— “(1) When allowed.— A contractor shall” ; (B) by striking “paragraph (1)” and inserting “subsection (a)”; (C) by redesignating subparagraph (B) as paragraph (2); (D) in paragraph (1), as designated by subparagraph (A), by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (E) in subparagraph (B), as so redesignated by subparagraph (D)— (i) by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”; and (ii) by striking “subsection (a)(3)” and inserting “section 3702(c) of this title”; and (F) in paragraph (2), as redesignated by subparagraph (C)— (i) by striking “subparagraph (A)” and inserting “paragraph (1)”; (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (iii) in subparagraph (A), as so redesignated, by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”; and (iv) in subparagraph (B), as so redesignated— (I) by striking “subparagraph (A)(ii)” and inserting “paragraph (1)(B)”; and (II) by striking “paragraph (1)(B)” and inserting “subsection (a)(2)”. (h) Transfer of Subsection (f) of Section 2306a.— (1) Transfer.— Subsection (f) of section 2306a of title 10, United States Code, is transferred to section 3707 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by redesignating paragraph (2) as subsection (b). (2) Conforming internal redesignations in new 3707(a).— Subsection (a) of such section 3706, as so transferred and redesignated, is amended— (A) by striking “Interest and Penalties for Certain Overpayments.—(1)” and inserting “In General.—” (B) by striking “this section” and inserting “this chapter”; (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; and (D) in paragraph (1), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (3) Conforming internal redesignations in new 3707(b).— Subsection (b) of such section 3706, as so transferred and redesignated, is amended— (A) by inserting “Liability Not Affected by Refusal to Submit Certification.—” before “Any liability”; (B) by striking “this subsection” and inserting “this section”; and (C) by striking “subsection (a)(2)” and inserting “section 3702(b) of this title”. (i) Transfer of Subsection (g) of Section 2306a.— Subsection (g) of section 2306a of title 10, United States Code, is transferred to section 3708 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection redesignation and subsection heading; (2) by striking “this section” and inserting “this chapter”; and (3) by striking “section 2313(a)(2)” and inserting “section 3841(b)(2)”. (j) Conforming Cross-reference Amendments.— (1) Section 1608(b) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2273 note) is amended by striking “section 2306a” and inserting “chapter 271”. (2) Section 866(b)(4) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 2302 note) is amended— (A) in subparagraph (A), by striking “section 2306a” and inserting “chapter 271”; and (B) in subparagraph (B), by striking “section 2306a(d)” and inserting “section 3705”. (3) Section 2343 of title 10, United States Code, is amended by striking “2306a, and 2313” and inserting “3701–3708, and 3841”. (4) Section 2379(c)(1) of title 10, United States Code, is amended by striking “section 2306a” and inserting “sections 3701–3708”. (5) Section 2380(b)(2)(B)(i) of title 10, United States Code, is amended by striking “section 2306a(b)(4)(B)” and inserting “section 3703(d)(2)”. (6) Section 9511a(d) of title 10, United States Code, is amended by striking “section 2306a” and inserting “chapter 271”. (7) Section 890(a)(2) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2306a note) is amended by striking “section 2306a” and inserting “of chapter 271”. (k) Chapter for Additional Cost or Pricing Provisions.— Such Part V is further amended by inserting after chapter 271, as added by subsection (a), the following new chapter: “CHAPTER 272— OTHER PROVISIONS RELATING TO COST OR PRICING DATA “Sec. “3721. Evaluating the reasonableness of price: guidance and training. “3722. Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards. “3723. Streamlining awards for innovative technology projects: pilot program. “3724. Risk-based contracting for smaller contract actions under Truth in Negotiations Act: pilot program. “§ 3721. Evaluating the reasonableness of price: guidance and training “[Reserved]. “§ 3722. Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards “[Reserved]. “§ 3723. Streamlining awards for innovative technology projects: pilot program “[Reserved]. “§ 3724. Risk-based contracting for smaller contract actions under truth in negotiations act: pilot program “[Reserved].” . (l) Tables of Chapters Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of Public Law 115–232), of title 10, United States Code, 10 USC prec.101, prec. 3001. are amended by striking the item relating to chapter 271 and inserting the following: “271. Truthful Cost or Pricing Data (Truth in Negotiations) “272. Other Provisions Relating to Cost or Pricing Data SEC. 1832. ALLOWABLE COSTS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3741. is amended by striking chapter 273 and inserting the following:”. “CHAPTER 273— ALLOWABLE COSTS “Subchapter Sec. “I. General “II. Other Allowable Cost Provisions “SUBCHAPTER I— GENERAL “Sec. “3741. Definitions. “3742. Adjustment of threshold amount of covered contract. “3743. Effect of submission of unallowable costs. “3744. Specific costs not allowable. “3745. Required regulations. “3746. Applicability of regulations to subcontractors. “3747. Contractor certification. “3748. Penalties for submission of cost known as not allowable. “3749. Burden of proof on contractor. “3750. Proceeding costs not allowable. “§ 3741. Definitions “In this subchapter: “§ 3742. Adjustment of threshold amount of covered contract “§ 3743. Effect of submission of unallowable costs “§ 3744. Specific costs not allowable “§ 3745. Required regulations “§ 3746. Applicability of regulations to subcontractors “§ 3747. Contractor certification “§ 3748. Penalties for submission of cost known as not allowable “§ 3749. Burden of proof on contractor “§ 3750. Proceeding costs not allowable” . (b) Transfer of Definition Paragraphs From Subsection (l) of Section 2324.— (1) Paragraph (4) of section 2324(l) of title 10, United States Code, is transferred to section 3741 of such title, as added by subsection (a), inserted at the end, redesignated as paragraph (1), and amended by inserting “Compensation.—” before “The term”. (2) Subparagraph (A) of paragraph (1) of such section 2324(l) is transferred to section 3741 of such title, as added by subsection (a), inserted after paragraph (1), as transferred and redesignated by paragraph (1), redesignated as paragraph (2), and amended by inserting “Covered contract.—” before “The term”. (3) (A) Paragraphs (6), (2), and (3) of such section 2324(l) are transferred to section 3741 of such title, as added by subsection (a), inserted (in that order) after paragraph (2), as transferred and redesignated by paragraph (2), and redesignated as paragraphs (3), (4), and (5), respectively. (B) The paragraphs transferred and redesignated by subparagraph (A) are amended— (i) by inserting “Fiscal year.—” before “The term” in paragraph (3), as so redesignated; (ii) by inserting “Head of the agency.—” before “The term” in paragraph (4), as so redesignated; and (iii) by inserting “Agency.—” before “The term” in paragraph (5), as so redesignated. (4) Subparagraph (B) of paragraph (1) of such section 2324(l) is transferred to section 3742 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by realigning the text 2 ems to the left; (B) by striking the subparagraph designation; and (C) by striking “subparagraph (A)” and inserting “section 3741(2) of this title”. (c) Transfer of Subsections (a)-(d) of Section 2324.— (1) Transfer.— Subsections (a), (b), (c), and (d) of section 2324 of title 10, United States Code, are transferred to section 3743 of such title, as added by subsection (a), and inserted after the section heading. (2) Amendments to new 3743(b).— Such subsection (b) is amended— (A) by striking “Principle.—(1) If the” and inserting “ Principle.— “(1) If the” ; and (B) by realigning paragraph (2) 2 ems to the right and inserting “Cost determined to be unallowable before proposal submitted.—” before “If the”. (d) Transfer of Subsection (e) of Section 2324.— (1) Transfer.— Subsection (e) of section 2324 of title 10, United States Code, is transferred to section 3744 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; (B) by redesignating paragraphs (1), (2), (3), and (4) as subsections (a), (d), (b), and (c), respectively; and (C) by transferring subsection (d), as so redesignated, to the end of such section, after subsection (c), as so redesignated. (2) Amendments to new 3744(a).— Subsection (a) of such section, as so redesignated, is amended— (A) by inserting “Specific Costs.—” before “The following costs”; (B) by redesignating subparagraphs (A) through (Q) as paragraphs (1) through (17), respectively (including redesignating both subparagraphs (P) as paragraph (16)); (C) in paragraph (15), as so redesignated, by striking “subsection (k)” and inserting “section 3750 of this title”; and (D) in paragraph (17), as so redesignated, by striking “subsection (k)(2)” and inserting “section 3750(c) of this title”. (3) Amendments to new 3744(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by striking “(A) Pursuant to” and inserting “ Waiver of Severance Pay Restrictions for Foreign Nationals.— “(1) Head of an agency determination.— Pursuant to” ; (B) by redesignating subparagraphs (B) and (C) as paragraphs (2) and (3), respectively; (C) in paragraph (1), as designated by subparagraph (A)— (i) by striking “paragraph (2)” and inserting “subsection (d)”; (ii) by striking “paragraphs (1)(M) and (1)(N)” and inserting “subsections (a)(13) and (a)(14)”; and (iii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; (D) in paragraph (2), as so redesignated by subparagraph (B)— (i) by realigning that paragraph 2 ems to the right; (ii) by inserting “Solicitation to include statement about waiver.—” before “The head of”; (iii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (iv) in subparagraph (A), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; and (E) in paragraph (3), as so redesignated by subparagraph (B)— (i) by realigning that paragraph 2 ems to the right; (ii) by inserting “Determination to be made before contract awarded.—” before “The head of”; and (iii) by striking “subparagraph (A)” and inserting “paragraph (1)”. (4) Amendments to new 3744(c).— Subsection (c) of such section, as so redesignated, is amended— (A) by inserting “Establishment of Definitions, Exclusions, Limitations, and Qualifications.—” before “The provisions of”; and (B) by striking “this section” and inserting “this subchapter”. (5) Amendments to new 3744(d).— Subsection (d) of such section, as so redesignated and transferred, is amended— (A) by striking “(A) The Secretary” and inserting “ Specific Costs Under Military Banking Contracts Relating to Foreign Nationals.— “(1) Authority.— The Secretary” ; (B) by redesignating subparagraphs (B) and (C) as paragraphs (2) and (3), respectively, and realigning those paragraph 2 ems to the right; (C) in paragraph (1), as designated by subparagraph (A), by striking “paragraphs (1)(M) and (1)(N)” and inserting “subsections (a)(13) and (a)(14)”; (D) in paragraph (2), as so redesignated by subparagraph (B)— (i) by inserting “Definitions.—” before “In”; (ii) by striking “subparagraph (A)” and inserting “paragraph (1)”; (iii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (iv) in subparagraph (A), as so redesignated, by inserting “Military banking contract.—” before “The term”; and (v) in subparagraph (B), as so redesignated, by inserting “Mandated foreign national severance pay.—” before “The term”; and (E) in paragraph (3), as so redesignated by subparagraph (B)— (i) by inserting “Exception for foreign-owned financial institutions.—” after the paragraph designation; and (ii) by striking “Subparagraph (A)” and inserting “Paragraph (1)”. (e) Transfer of Subsection (f) of Section 2324.— (1) Transfer.— Subsection (f) of section 2324 of title 10, United States Code, is transferred to section 3745 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; (B) by redesignating paragraph (1) as subsection (a); (C) by designating the third sentence of such subsection as subsection (b); (D) by redesignating paragraph (2) as subsection (c); and (E) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively, and realigning those paragraphs 2 ems to the right. (2) Amendment to new 3745(a).— Subsection (a) of such section, as so redesignated, is amended by inserting “In General.—” before “The Federal”. (3) Amendments to new 3745(b).— Subsection (b) of such section, as so designated by paragraph (1)(C), is amended— (A) by inserting “Specific Items.—” before “The regulations”; and (B) by redesignating subparagraphs (A) through (Q) as paragraphs (1) through (17), respectively. (4) Amendments to new 3745(c).— Subsection (c) of such section, as so redesignated by paragraph (1)(D), is amended— (A) by striking “The Federal” and inserting “ Additional Requirements.— “(1) When questioned costs may be resolved.— The Federal” ; (B) in paragraph (2), as so redesignated by paragraph (1)(E), by inserting “Presence of contract auditor.—” before “The Federal”; and (C) in paragraph (3), as so redesignated by paragraph (1)(E), by inserting “Settlement to reflect amount of individual questioned costs.—” before “The Federal”. (e) Transfer of Subsection (g) of Section 2324.— Subsection (g) of section 2324 of title 10, United States Code, is transferred to section 3746 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “subsections (e) and (f)(1)” and inserting “sections 3744 and 3745(a) and (b) of this title”. (f) Transfer of Subsection (h) of Section 2324.— (1) Transfer.— Subsection (h) of section 2324 of title 10, United States Code, is transferred to section 3747 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively. (2) Amendment to new 3747(a).— Subsection (a) of such section, as so redesignated, is amended by inserting “Content and Form.—” before “A proposal”. (3) Amendments to new 3747(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by inserting “Waiver.—” before “The head”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; and (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (g) Transfer of Subsection (i) of Section 2324.— Subsection (i) of section 2324 of title 10, United States Code, is transferred to section 3748 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (h) Transfer of Subsection (j) of Section 2324.— Subsection (j) of section 2324 of title 10, United States Code, is transferred to section 3749 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (i) Transfer of Subsection (k) of Section 2324.— (1) Transfer of paragraph (6) of 2324(k).— (A) Transfer.— Paragraph (6) of Subsection (k) of section 2324 of title 10, United States Code, is transferred to section 3750 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended by striking “In this subsection” and inserting “Definitions.—In this section”. (B) Redesignation of subparagraphs.— Such subsection (a), as so transferred and redesignated, is further amended by redesignating subparagraphs (A), (B), and (C) as paragraphs (3), (1), and (2), respectively, and transferring paragraph (3), as so redesignated to the end of such subsection so as to appear after paragraph (2), as so redesignated. (C) Amendments to new 3750(a)(1).— Paragraph (1) of such subsection, as so redesignated, is amended— (i) by inserting “Costs.—” before “The term”; (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (iii) in subparagraph (B), as so redesignated, by redesignating subclauses (I), (II), (III), and (IV) as clauses (i), (ii), (iii), and (iv), respectively. (D) Amendment to new 3750(a)(2).— Paragraph (2) of such subsection, as so redesignated, is amended by inserting “Penalty.—” before “The term”. (E) Amendment to new 3750(a)(3).— Paragraph (3) of such subsection, as so redesignated and transferred, is amended by inserting “Proceedings.—” before “The term”. (2) Transfer of paragraphs (1)-(5) of 2324(k).— Subsection (k) of section 2324 of title 10, United States Code (other than the portion transferred by paragraph (1)), is transferred to section 3750 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by paragraph (1), and amended by striking the subsection designation and heading and by redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (b), (c), (d), (e), and (f), respectively. (3) Amendments to new 3750(b).— Subsection (b) of such section, as so transferred and redesignated, is amended— (A) by inserting “In General.—” before “Except as”; (B) by striking “this subsection” and inserting “this section”; (C) by striking “section 2409” and inserting “section 4701”; (D) by striking “if the proceeding (A) relates to” and inserting “if the proceeding— “(1) relates to” ; (E) by striking “in subparagraphs (A) through (C) of section 2409(a)(1)” and inserting “in section 4701(a)(1)”; (F) by striking “this title, and (B) results in” and inserting “this title; and “(2) results in” ; and (G) by striking “paragraph (2)” and inserting “subsection (c)”. (4) Amendments to new 3750(c).— Subsection (c) of such section, as so transferred and redesignated, is amended— (A) by inserting “Covered Dispositions.—” before “A disposition”; (B) by striking “paragraph (1)(B)” and inserting “subsection (b)(2)”; (C) by striking “paragraph (1)” each place it appears and inserting “subsection (b)”; (D) by redesignating subparagraphs (A), (B), (C), (D), and (E) as paragraphs (1), (2), (3), (4), and (5), respectively; (E) in paragraph (3), as so redesignated, by striking “section 2409” and inserting “section 4701”; (F) in paragraph (4), as so redesignated, by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; and (G) in paragraph (5), as so redesignated, by striking “subparagraph (A), (B), (C), or (D)” and inserting “paragraphs (1), (2), (3), or (4)”. (5) Amendments to new 3750(d).— Subsection (d) of such section, as so transferred and redesignated, is amended— (A) by inserting “Costs Allowed by Settlement Agreement in Proceeding Commenced by United States.—” before “In the case of”; (B) by striking “paragraph (1)” and inserting “subsection (b)”; and (C) by striking “such paragraph” and inserting “such subsection”. (6) Amendments to new 3750(e).— Subsection (e) of such section, as so transferred and redesignated, is amended— (A) By inserting “Costs Specifically Authorized in Proceeding Commenced by State.—” before “In the case of”; (B) by striking “paragraph (1)” and inserting “subsection (b)”; and (C) by striking “(A)” and “(B)” and inserting “(1)” and “(2)”, respectively. (7) Amendments to new 3750(f).— Subsection (f) of such section, as so transferred and redesignated, is amended— (A) by striking “(A) Except as provided in” and inserting “ Other Allowable Costs.— “(1) In general.— Except as provided in” ; (B) by redesignating subparagraphs (B) and (C) as paragraphs (2) and (3), respectively, and realigning those paragraphs 2 ems to the right; (C) in paragraph (1), as designated by subparagraph (A)— (i) by striking “subparagraph (C)” and inserting “paragraph (3)”; (ii) by striking “paragraph (1)” and inserting “subsection (b)”; and (iii) by striking “subparagraph (B)” and inserting “paragraph (2)”; (D) in paragraph (2), as redesignated by subparagraph (B)— (i) by striking “(i) The amount of” and inserting “ Amount of Allowable Costs.— “(A) Maximum amount allowed.— The amount of” ; (ii) by redesignating clause (ii) as subparagraph (B); (iii) in subparagraph (A), as designated by clause (i), by striking “subparagraph (A)” and inserting “paragraph (1)”; and (iv) in subparagraph (B), as redesignated by clause (ii)— (I) by inserting “Content of regulations.—” before “Regulations issued”; (II) by striking “clause (i)” and inserting “subparagraph (A)”; (III) by striking “consideration of the complexity of” and inserting “consideration of— “(i) the complexity of” ; (IV) by striking “procurement litigation, generally accepted” and inserting “procurement litigation; “(ii) generally accepted” ; and (E) by striking “as a party and such other” and inserting “as a party; and “(iii) such other” ; and (F) in paragraph (3), as redesignated by subparagraph (B)— (i) by inserting “When otherwise allowable costs are not allowable.—” before “In the case of”; (ii) by striking “subparagraph (A)” and inserting “paragraph (1)”; (iii) by striking “under this paragraph” and inserting “under this subsection”; (iv) by striking “not allowable if (i) such proceeding” and inserting “not allowable if— “(A) such proceeding” ; and (v) by striking “proceeding, and (ii) the costs” and inserting “proceeding; and “(B) the costs” . (j) Additional Allowable Cost Provisions.— (1) In general.— Chapter 273 of title 10, United States Code, as added by subsection (a), is amended by adding at the end the following new subchapter: “Subchapter II— Other Allowable Cost Provisions “Sec. “3761. Restructuring costs. “3762. Independent research and development costs: allowable costs. “3763. Bid and proposal costs: allowable costs. “3764. Excessive pass-through charges. “3765. Institutions of higher education: reimbursement of indirect costs under Department of Defense contracts.”. (2) Transfer of sections on restructuring costs, allowability of independent research and development costs, and allowability of bid and proposal costs.— Sections 2325, 2372, and 2372a of title 10, United States Code, are transferred to subchapter II of chapter 273 of such title, as added by paragraph (1), inserted (in that order) after the table of sections, and redesignated as sections 3761, 3762, and 3763, respectively. (3) Amendments to new 3761.— Section 3761 of title 10, United States Code, as so transferred and redesignated, is amended— (A) by redesignating subsection (b) as subsection (c); (B) in subsection (a)— (i) by striking “(1)” before “The Secretary”; and (ii) by striking “section 2324 of this title” and inserting “subchapter I”: (C) by redesignating paragraph (2) as subsection (b); (D) in subsection (b), as so redesignated— (i) by inserting “Limitation on Delegation.—” before “The Secretary may not”; and (ii) by striking “paragraph (1)” and inserting “subsection (a)”; and (E) in each of such subsections (a) and (b), by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (4) Amendments to new 3763.— Section 3763 of such title, as so transferred and redesignated by paragraph (2), is amended by striking “section 2324(l)” in subsection (b) and inserting “section 3741”. SEC. 1833. PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA. (a) New Chapter.— (1) In general.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3771. is amended by striking chapter 275 and inserting the following: “CHAPTER 275— PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA “Subchapter Sec. “I. Rights in Technical Data “II. Validation of Proprietary Data Restrictions “III. Other Provisions Relating to Proprietary Contractor Data and Rights in Technical Data “SUBCHAPTER I— RIGHTS IN TECHNICAL DATA “Sec. “3771. Rights in technical data: regulations. “3772. Rights in technical data: provisions required in contracts. “3773. Domestic business concerns: programs for replenishment parts. “3774. Major weapon systems and subsystems: long-term technical data needs. “3775. Definitions. “§ 3771. Rights in technical data: regulations “§ 3772. Rights in technical data: provisions required in contracts “§ 3773. Domestic business concerns: programs for replenishment parts “§ 3774. Major weapon systems and subsystems: long-term technical data needs “§ 3775. Definitions” . (2) Tables of chapters amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the item relating to chapter 275 and inserting the following new item: “275. Proprietary Contractor Data and Rights in Technical Data (b) Transfer of Subsection (a) of Section 2320.— (1) Transfer.— Subsection (a) of section 2320 of title 10, United States Code, is transferred to section 3771 of such title, as added by subsection (a), inserted after the section heading, and amended by redesignating paragraphs (2) and (3) as subsections (b) and (c), respectively. (2) Internal redesignations and insertion of headings in new 3771(a).— Subsection (a) of such section, as so transferred and amended, is amended— (A) by striking “(1) The Secretary of” and inserting “ Regulations Required.— “(1) In general.— The Secretary of” ; and (B) by designating the third sentence as paragraph (2) and in that paragraph— (i) by striking “Such regulations may not” and inserting “Other rights not impaired.—Regulations prescribed under paragraph (1) may not”; (ii) by striking “impair any right of the” and inserting “impair— “(A) any right of the” ; and (iii) by striking “by law” and all that follows through “the right of a contractor” and inserting “by law; or “(B) the right of a contractor” . (3) Internal redesignations and insertion of headings in new 3771(b).— Subsection (b) of such section, as so transferred and redesignated, is amended— (A) by striking “Such regulations” and inserting “Required Provisions.—Regulations prescribed under subsection (a)”; (B) by redesignating subparagraphs (A) through (I) as paragraphs (1) through (9), respectively; (C) in paragraph (1), as so redesignated, by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (D) in paragraph (2), as so redesignated, by striking “subparagraphs (C), (D), and (G)” and inserting “paragraphs (3), (4), and (7)”; (E) in paragraph (3), as so redesignated— (i) by striking “subparagraph (b).—Subparagraph (B) does not” and inserting “paragraph (2).—Paragraph (2) does not”; and (ii) by redesignating clauses (i), (ii), (iii), and (iv) as subparagraphs (A), (B), (C), and (D), respectively; (F) in paragraph (4), as so redesignated— (i) by striking “subparagraph (b).—Notwithstanding subparagraph (B)” and inserting “paragraph(2).— Notwithstanding paragraph (2)”; (ii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; and (iii) in subparagraph (A), as so redesignated, by redesignating subclauses (I), (II), and (III) as clauses (i), (ii), and (iii), respectively; (G) in paragraph (5), as so redesignated— (i) by striking “Mixed funding.—Except as provided in subparagraphs (F) and (G),” and inserting “ Mixed funding.— “(A) In general.— Except as provided in paragraphs (6) and (7),” ; and (ii) by designating the second sentence as subparagraph (B), realigning that subparagraph 2 ems to the right, and inserting “Factors to be considered.—” before “The establishment of”; (H) in paragraph (6), as so redesignated, by striking “subparagraph (E)” and inserting “paragraph (5)”; (I) in paragraph (7), as so redesignated— (i) by striking “Mixed funding.—Notwithstanding subparagraphs (B) and (E)” and inserting “ Mixed funding. — “(A) Notwithstanding paragraphs (2) and (5)” ; (ii) by striking “section 2446a” and inserting “section 4401”; and (iii) by designating the second and third sentences as subparagraphs (B) and (C), respectively; (J) in paragraph (8), as so redesignated— (i) by inserting “Limitations on requirements related to contractor or subcontractor rights in technical data.—” before “A contractor or subcontractor”; (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; (iii) in subparagraph (A), as so redesignated, by redesignating subclauses (I), (II), and (III) as clauses (i), (ii), and (iii), respectively; (iv) in clause (i), as so redesignated, by striking “subparagraph (A)” and inserting “paragraph (1)”; (v) in clause (ii), as so redesignated, by striking “subparagraph (C)” and inserting “paragraph (3)”; (vi) in clause (iii), as so redesignated, by striking “subparagraph (D)” and inserting “paragraph (4)”; and (vii) in subparagraph (B), as so redesignated, by striking “subparagraph (B)” and inserting “paragraph (2)”; and (K) in paragraph (9), as so redesignated— (i) by inserting “Actions authorized if necessary to develop alternative sources of supply and manufacture.—” before “The Secretary of Defense”; (ii) by redesignating clauses (i), (ii), and (ii) as subparagraphs (A), (B), and (C), respectively; (iii) in subparagraph (A), as so redesignated, by striking “subparagraph (C) or (D)” and inserting “paragraph (3) or (4)”; and (iv) in subparagraph (B), as so redesignated, by striking “this section” and inserting “this subchapter”. (4) Internal redesignations and insertion of headings in new 3771(c).— Subsection (c) of such section, as so transferred and redesignated, is amended— (A) by inserting “Secretary of Defense to Define Terms.—” before “The Secretary of”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; (C) by striking “the Secretary shall specify” and inserting “the Secretary— “(1) shall specify” ; (D) by striking “treated and shall specify” and inserting “treated; and “(2) shall specify” ; and (E) by striking “this paragraph” and inserting “this subsection”. (c) Transfer of Subsections (b) and (c) of Section 2320.— (1) Transfer.— Subsections (b) and (c) of section 2320 of title 10, United States Code, are transferred to section 3772 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsections (a) and (b), respectively. (2) Internal redesignations and insertion of headings in new 3772(a).— Subsection (a) of such section, as so transferred and redesignated, is amended— (A) by inserting “Contract Provisions Relating to Technical Data.—” before “Regulations prescribed under”; (B) by striking “subsection (a)” and inserting “section 3771 of this title”; (C) by striking “section 2303” and inserting “section 3063”; (D) in paragraph (1), by striking “section 2321(f)” and inserting “section 3784”; (E) in paragraph (6)— (i) by striking “the contractor to revise” and inserting “the contractor— “(A) to revise” ; and (ii) by striking “the contract and to deliver” and inserting “the contract; and “(B) to deliver” ; (F) in paragraph (7)— (i) by striking “is found to be” and inserting “is found— “(A) to be” ; and (ii) by striking “or inadequate or to not” and inserting “or inadequate; or “(B) to not” ; (G) in paragraph (9)(B)(ii), by striking “subparagraphs (D)(i)(II), (F), and (G) of subsection (a)(2)” and inserting “paragraphs (4)(A)(ii), (6), and (7) of section 3771(b) of this title”; and (H) in paragraph (10), by striking “section 2321(d)” and inserting “section 3782”. (3) Internal redesignations in new 3772(b).— Subsection (b) of such section, as so transferred and redesignated, is amended— (A) by striking “in this section or in section 2305(a)” and inserting “in this subchapter or in section 3208”; and (B) in paragraph (2), by striking “subsection (a)” and inserting “section 3771 of this title”. (d) Transfer of Subsection (d) of Section 2320.— Subsection (d) of section 2320 of title 10, United States Code, is transferred to section 3773 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation; and (2) by striking “this subsection” and inserting “this section”. (e) Transfer of Subsection (e) and (f) of Section 2320.— (1) Transfer.— Subsections (e) and (f) of section 2320 of title 10, United States Code, are transferred to section 3774 of such title, as added by subsection (a), inserted after the section heading, and redesigned as subsections (a) and (c), respectively. (2) Designation of new 3774(b).— The third sentence of subsection (a) of such section, as so transferred and redesignated, is designated as subsection (b). (3) Amendments to new 3774(a).— Subsection (a) of such section, as so amended, is further amended— (A) by striking “The Secretary of Defense shall require” and inserting “ Assessments and Acquisitions Strategies.— “(1) The Secretary of Defense shall require” ; (B) by designating the second sentence as paragraph (2); (C) in paragraph (1), as designated by subparagraph (A)— (i) by striking “to assess the long-term” and inserting “to— “(A) assess the long-term” ; and (ii) by striking “systems and subsystems and establish” and inserting “systems and subsystems; and “(B) establish” ; and (D) in paragraph (2), as designated by subparagraph (B)— (i) by striking “may include the development” and inserting “may include— “(A) the development” ; and (ii) by striking “Department of Defense or competition for” and inserting “Department of Defense; or “(B) competition for” . (4) Amendments to new 3774(b).— Subsection (b) of such section, as designated by paragraph (2), is amended— (A) by inserting “Requirements Relating to Assessments and Acquisition Strategies.—” before “Assessments and corresponding”; and (B) by striking “developed under” and all that follows through “with respect to” and inserting “developed under subsection (a) with respect to”. (5) Amendments to new 3774(c).— Subsection (c) of such section, as redesignated by paragraph (1), is amended— (A) by striking “Licenses.—The Secretary” and inserting “ Licenses.— “(1) The Secretary” ; (B) by designating the second sentence as paragraph (2); and (C) in paragraph (2), as so designated, by striking “subsection (e)” and inserting “subsection (a)”. (f) Transfer of Subsection (g) and (h) of Section 2320.— (1) Transfer.— Subsections (g) and (h) of section 2320 of title 10, United States Code, are transferred to section 3775 of such title, as added by subsection (a), inserted after the section heading, and redesigned as subsections (a) and (b), respectively. (2) Conforming amendments.— (A) Such subsections (a) and (b), as so transferred and redesignated, are each amended by striking “In this section,” and inserting “In this subchapter,”. (B) Such subsection (b) is amended by striking “section 2446a” and inserting “section 4401”. (g) New Subchapter.— Chapter 275 of title 10, United States Code, as added by subsection (a), is amended by adding at the end the following new subchapter: “SUBCHAPTER II— VALIDATION OF PROPRIETARY DATA RESTRICTIONS “Sec. “3781. Technical data: contractor justification for restrictions; review of restrictions. “3782. Technical data: challenges to contractor restrictions. “3783. Technical data: time for contractors to submit justifications. “3784. Technical data under contracts for commercial items: presumption of development exclusively at private expense. “3785. Technical data: decision by contracting officer; claims; rights and liability upon final disposition. “3786. Use or release restriction: definition. “§ 3781. Technical data: contractor justification for restrictions; review of restrictions “§ 3782. Technical data: challenges to contractor restrictions “§ 3783. Technical data: time for contractors to submit justifications “§ 3784. Technical data under contracts for commercial items: presumption of development exclusively at private expense “§ 3785. Technical data: decision by contracting officer; claims; rights and liability upon final disposition “§ 3786. Use or release restriction: definition” . (h) Transfer of Subsections (a), (b), and (c) of Section 2321.— (1) Transfer.— Subsections (a), (b), and (c) of section 2321 of title 10, United States Code, are transferred to section 3781 of such title, as added by subsection (g), and inserted after the section heading. (2) Conforming amendments to new 3781(a).— Subsection (a) of such section, as so transferred, is amended by striking “Contracts Covered by Section.—This section” and inserting “Contracts Covered by Subchapter.—This subchapter”. (3) Conforming amendments to new 3781(b).— Subsection (b) of such section, as so transferred, is amended— (A) by striking “this section” and inserting “this subchapter”; and (B) by striking “(as defined” and all that follows through “asserted” and inserting “(as defined in section 3786 of this title) asserted”. (4) Conforming amendments to new 3781(c).— Subsection (c) of such section, as so transferred, is amended— (A) by striking “Restrictions.—(1) The Secretary” and inserting “ Restrictions.— “(1) The Secretary” ; (B) in paragraph (1), by striking “this section” and inserting “this subchapter”; and (C) by realigning paragraph (2) 2 ems to the right. (i) Transfer of Subsection (d) of Section 2321.— (1) Transfer.— Subsection (d) of section 2321 of title 10, United States Code, is transferred to section 3782 of such title, as added by subsection (g), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1), (2), (3), and (4) as subsections (a), (b), (c), and (d), respectively. (2) Conforming amendments to new 3782(a).— Subsection (a) of such section 3782, as so transferred and redesignated, is amended— (A) by inserting “Challenges by Secretary of Defense.—” before “The Secretary of Defense”; (B) by striking “this section” and inserting “this subchapter”; and (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (3) Conforming amendments to new 3782(b).— Subsection (b) of such section 3782, as so transferred and redesignated, is amended— (A) by striking “(A) A challenge” and inserting “ Time Limit for Challenges; Exceptions.— “(1) A challenge” ; (B) by redesignating subparagraph (B) as paragraph (2) and realigning that paragraph 2 ems to the right; (C) in paragraph (1), as designated by subparagraph (A)— (i) by striking “paragraph (1)” and inserting “subsection (a)”; (ii) by striking “subparagraph (B)” and inserting “paragraph (2)”; and (iii) by redesignating clauses (i), (ii), (iii), and (iv) as subparagraphs (A), (B), (C), and (D), respectively; and (D) in paragraph (2), as redesignated by subparagraph (B)— (i) by striking “subparagraph (A)” and inserting “paragraph (1)”; and (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (4) Conforming amendments to new 3782(c).— Subsection (c) of such section 3782, as so transferred and redesignated, is amended— (A) by inserting “Written Notice to Contractor or Subcontractor.—” before “If the Secretary”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; (C) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively; and (D) in paragraph (3), as so redesignated, by striking “paragraph (4)” and inserting “subsection (d)”. (5) Conforming amendments to new 3782(d).— Subsection (d) of such section 3782, as so transferred and redesignated, is amended— (A) by inserting “Justification.—” before “It is a justification”; (B) by striking “paragraph (1)” and inserting “subsection (a)”; (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; and (D) in paragraph (1), as so redesignated, by striking “this subsection” and inserting “this section”. (j) Transfer of Subsection (e) of Section 2321.— (1) Transfer.— Subsection (e) of section 2321 of title 10, United States Code, is transferred to section 3783 of such title, as added by subsection (g), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (2) Designation of new subsections (a) and (b).— Such section, as so transferred and amended, is further amended— (A) by designating the first sentence as subsection (a) and inserting “Additional Time to Submit Justifications.—” before “If a contractor”; and (B) by designating the second sentence as subsection (b) and inserting “Multiple Challenges; Schedule of Responses.—” before “If a party”. (k) Transfer of Subsection (f) of Section 2321.— Subsection (f) of section 2321 of title 10, United States Code, is transferred to section 3784 of such title, as added by subsection (g), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “subsection (d)(3)” and inserting “section 3782(c) of this title”. (l) Transfer of Subsections (g), (h), and (i) of Section 2321.— (1) Transfer.— Subsections (g), (h), and (i) of section 2321 of title 10, United States Code, are transferred to section 3785 of such title, as added by subsection (g), inserted after the section heading, and redesignated as subsections (a), (b), and (c), respectively. (2) Conforming amendments to new 3785(a).— Subsection (a) of such section, as so transferred and redesignated, is amended— (A) by striking “subsection (d)(3)” both places it appears and inserting “section 3782(c) of this title”; (B) by striking “Officer.—(1) Upon failure” and inserting “ Officer.— “(1) Upon failure” ; and (C) by realigning paragraph (2) 2 ems to the right. (3) Conforming amendments to new 3785(c).— Subsection (c) of such section 3786, as so transferred and redesignated, is amended— (A) by striking “Disposition.—(1) If, upon final” and inserting “ Disposition.— “(1) If, upon final” ; and (B) by realigning paragraph (2) 2 ems to the right. (m) Transfer of Subsection (j) of Section 2321.— Subsection (j) of section 2321 of title 10, United States Code, is transferred to section 3786 of such title, as added by subsection (g), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “In this section” and inserting “In this subchapter”. (n) New Subchapter.— Chapter 275 of title 10, United States Code, as added by subsection (a), is amended by adding after subchapter II, as added by subsections (g), the following new subchapter: “SUBCHAPTER III— OTHER PROVISIONS RELATING TO PROPRIETARY CONTRACTOR DATA AND RIGHTS IN TECHNICAL DATA “Sec. “3791. Management of intellectual property matters within the Department of Defense. “3792. Technical data rights: non-FAR agreements. “3793. Copyrights, patents, designs, etc.; acquisition. “3794. Release of technical data under Freedom of Information Act: recovery of costs. “§ 3791. Management of intellectual property matters within the department of defense “(b) Cadre of Intellectual Property Experts.— For a provision requiring establishment of a cadre of personnel who are experts in intellectual property matters, see section 1707 of this title.” . (o) Transfers.— (1) Transfer of section 2322(a).— Subsection (a) of section 2322 of title 10, United States Code, is transferred to section 3791 of such title, as added by subsection (n), and inserted after the section heading. (2) Transfer of sections 2386 and 2328.— Section 2386 and 2328 of such title are transferred to subchapter III of chapter 275 of such title, as added by subsection (n), inserted (in that order) after section 3791, and redesignated as section 3793 and 3794, respectively. (p) Cross Reference Amendments.— Section 8687(a) of title 10, United States Code, is amended by striking “section 2320” each place it appears and inserting “subchapter I of chapter 275”. SEC. 1834. CONTRACT FINANCING. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3801. is amended by striking chapter 277 and inserting the following: “CHAPTER 277— CONTRACT FINANCING “Sec. “3801. Authority of agency. “3802. Payment. “3803. Security for advance payments. “3804. Conditions for progress payments. “3805. Payments for commercial products and commercial services. “3806. Action in case of fraud. “3807. Vesting of title in the United States. “§ 3801. Authority of agency “§ 3802. Payment “§ 3803. Security for advance payments “§ 3804. Conditions for progress payments “§ 3805. Payments for commercial products and commercial services “§ 3806. Action in case of fraud “§ 3807. Vesting of title in the United States” . (b) Transfer of Subsection (a) of Section 2307.— (1) Transfer.— Subsection (a) of section 2307 of title 10, United States Code, is transferred to section 3801 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking “(1)” before “The head of”; and (B) by redesignating paragraph (2) as subsection (b). (2) Conforming amendments to new 3801(a).— Such subsection (a), as so transferred and amended, is further amended by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (3) Conforming amendments to new 3801(b).— Subsection (b) of such section 3801, as redesignated by paragraph (1)(B), is amended— (A) by striking “(A) For a prime” and inserting “ Payment Dates for Contractors That Are Small Business Concerns.— “(1) Prime contractors.— For a prime” ; (B) by redesignating subparagraph (B) as paragraph (2); and (C) in paragraph (2), as so redesignated— (i) by inserting “Subcontractors.—” before “For a prime”; and (ii) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively. (c) Transfer of Subsections (b) and (c) of Section 2307.— (1) Transfer.— Subsections (b) and (c) of section 2307 of title 10, United States Code, are transferred to section 3802 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsections (a) and (d), respectively. (2) Further internal redesignation amendments to new 3802.— Such section 3802, as so amended, is further amended (A) in subsection (a), by striking “(1)” before “Whenever possible”; (B) by redesignating paragraph (2) of subsection (a) as subsection (b); (C) by transferring paragraph (3) of such subsection to the end of the section and redesignating such paragraph as subsection (e); (D) by redesignating paragraph (4) of subsection (a) as subsection (c); and (E) by redesignating subparagraphs (A), (B), and (C) of subsection (a) as paragraphs (1), (2), and (3), respectively. (3) Conforming amendment to new 3802(a).— Subsection (a) of such section is further amended by striking “subsection (a)” and inserting “section 3801 of this title”. (4) Conforming amendments to new 3802(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by inserting “Basis for performance-based payments.—” before “Performance-based payments”; and (B) by striking “paragraph (1)” and inserting “subsection (a)”. (5) Conforming amendments to new 3802(c).— Subsection (c) of such section, as so redesignated, is amended— (A) by striking “(A) In order to” and inserting “ Contractor Accounting Systems.— “(1) In order to” ; and (B) by redesignating subparagraph (B) as paragraph (2), realigning that paragraph 2 ems to the right, and striking “this section” therein and inserting “this chapter”. (6) Conforming amendment to new 3802(d).— Subsection (d) of such section, as redesignated by paragraph (1), is amended by striking “subsection (a)” and inserting “section 3801 of this title”. (7) Conforming amendment to new 3802(e).— Subsection (e) of such section, as transferred and redesignated by paragraph (2)(C), is amended by inserting “Eligibility of Nontraditional Defense Contractors.—” before “The Secretary of”. (d) Transfer of Subsection (d) of Section 2307.— Subsection (d) of section 2307 of title 10, United States Code, is transferred to section 3803 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “subsection (a)” and inserting “section 3801 of this title”. (e) Transfer of Subsection (e) of Section 2307.— (1) Transfer.— Subsection (e) of section 2307 of title 10, United States Code, is transferred to section 3804 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively. (2) Conforming amendment to new 3804(a).— Subsection (a) of such section 3804, as so transferred and redesignated, is amended by inserting “Payment Commensurate With Work.—” before “The Secretary of Defense”. (3) Conforming amendments to new 3804(b).— Subsection (b) of such section 3804, as so transferred and redesignated, is amended— (A) by inserting “Limitation.—” before “The Secretary”; and (B) by striking “paragraph (1)” and inserting “subsection (a)”. (4) Conforming amendments to new 3804(c).— Subsection (c) of such section 3804, as so transferred and redesignated, is amended— (A) by inserting “Applicability.—” before “This”; and (B) by striking “subsection” and inserting “section”. (f) Transfer of Subsection (f) of Section 2307.— (1) Transfer.— Subsection (f) of section 2307 of title 10, United States Code, is transferred to section 3805 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation and subsection heading; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (c), and (d), respectively. (2) Further internal redesignation amendments to new 3805.— Such section 3805, as so amended, is further amended by designating the second sentence of subsection (a) as subsection (b). (4) Conforming amendments to new 3805(a).— Subsection (a) of such section, as so transferred and redesignated, is amended— (A) by inserting “Terms and Conditions for Payments.—” before “Payments under”; and (B) by striking “subsection (a)” and inserting “section 3801 of this title”. (4) Conforming amendment to new 3805(b).— Subsection (b) of such section, as designated by paragraph (2), is amended by inserting “Security for Payments.—” before “The head of the agency”. (5) Conforming amendments to new 3805(c).— Subsection (c) of such section, as so transferred and redesignated, is amended— (A) by inserting “Limitation on Advance Payments.—” before “Advance payments”; and (B) by striking “subsection (a)” and inserting “section 3801 of this title”. (6) Conforming amendments to new 3805(d).— Subsection (d) of such section, as so transferred and redesignated, is amended— (A) by inserting “Nonapplication of Certain Conditions.—” before “The conditions of”; (B) by striking “subsections (d) and (e)” and inserting “sections 3803 and 3804 of this title”; and (C) by striking “paragraphs (1) and (2)” and inserting “this section”. (g) Transfer of Subsection (i) of Section 2307.— (1) Transfer.— Subsection (i) of section 2307 of title 10, United States Code, is transferred to section 3806 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation and subsection heading. (2) Further internal redesignation amendments to new 3806.— Such section 3806, as so amended, is further amended— (A) by redesignating paragraphs (1) through (9) as subsections (b) through (j), respectively; and (B) by transferring paragraph (10) to the beginning of such section so as to appear before subsection (b), as redesignated by subparagraph (A), and redesignating that paragraph as subsection (a). (3) Conforming amendments to new 3806(a).— Subsection (a) of such section, as transferred and redesignated by paragraph (2)(B), is amended— (A) by inserting “Remedy Coordination Official Defined.—” before “In this”; and (B) by striking “this subsection” and inserting “this section”. (4) Conforming amendment to new 3806(b).— Subsection (b) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended by inserting “Recommendation to Reduce or Suspend Payments.—” before “In any case”. (5) Conforming amendments to new 3806(c).— Subsection (c) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended— (A) by inserting “Reduction or Suspension of Payments.—” before “The head of”; and (B) by striking “paragraph (1)” and inserting “subsection (b)”. (6) Conforming amendments to new 3806(d).— Subsection (d) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended— (A) by inserting “Extent of Reduction or Suspension.—” before “The extent of”; and (B) by striking “paragraph (2)” and inserting “subsection (c)”. (7) Conforming amendments to new 3806(e).— Subsection (e) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended— (A) by inserting “Written Justification.—” before “A written”; and (B) by striking “paragraph (2)” and inserting “subsection (c)”. (8) Conforming amendments to new 3806(f).— Subsection (f) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended— (A) by inserting “Notice.—” before “The head of an agency shall”; and (B) by striking “paragraph (2)” and inserting “subsection (c)”. (9) Conforming amendments to new 3806(g).— Subsection (g) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended— (A) by inserting “Review.—” before “Not later than”; (B) by striking “paragraph (2)” and inserting “subsection (c)”; and (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (10) Conforming amendments to new 3806(h).— Subsection (h) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), is amended— (A) by inserting “Annual Report.—” before “The head of”; and (B) by striking “paragraph (2)” and inserting “subsection (c)”. (11) Reordering and redesignation for title 41 consistency.— Subsections (i) and (j) of such section, as transferred and redesignated by paragraphs (1) and (2)(A), are reversed in order and are redesignated accordingly. (12) Conforming amendments to new 3806(i).— Subsection (i) of such section, as transferred and redesignated by paragraphs (1), (2)(A), and (11), is amended— (A) by inserting “Restriction on Delegation.—” before “The head of”; and (B) by striking “this subsection” and inserting “this section”. (13) Conforming amendments to new 3806(j).— Subsection (j) of such section, as transferred and redesignated by paragraphs (1), (2)(A), and (11), is amended— (A) by inserting “Inapplicability to Coast Guard.—” before “This”; (B) by striking “subsection applies” and inserting “section applies”; and (C) by striking “section 2303(a)” and inserting “section 3063”. (h) Transfer of Subsection (h) of Section 2307.— Subsection (h) of section 2307 of title 10, United States Code, is transferred to section 3807 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “subsection (a)(1)” and inserting “section 3801(1) of this title”. SEC. 1835. CONTRACTOR AUDITS AND ACCOUNTING. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3841. is amended by striking chapter 279 and inserting the following: “CHAPTER 279— CONTRACTOR AUDITS AND ACCOUNTING “Sec. “3841. Examination of records of contractor. “3842. Performance of incurred cost audits. “3843. Contractor internal audit reports: Department of Defense access to, use of, and safeguards and protections for. “3844. Contractor business systems. “3845. Contractor inventory accounting systems: standards. “3846. Defense Contract Audit Agency: legal resources and expertise. “3847. Defense Contract Audit Agency: annual report. “3848. Defense audit agencies: Small Business Ombudsmen. “§ 3841. Examination of records of contractor” . (b) Transfer of Section 2313.— (1) Transfer of subsections (a) through (h).— Subsections (a) through (h) of section 2313 of title 10, United States Code, are transferred to section 3841 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsections (b) through (i), respectively. (2) Transfer of subsection (i).— Subsection (i) of section 2313 of such title is transferred to section 3841 of such title, as amended by paragraph (1), inserted before subsection (b), as transferred and redesignated by paragraph (1), and redesignated as subsection (a). (3) Conforming amendments to new 3841(b).— Subsection (b) of such section 3841, as redesignated by paragraph (1), is amended— (A) by striking “Agency Authority.—(1) The head of” and inserting “ Agency Authority. — “(1) The head of” ; (B) in paragraph (1)(A), by striking “made by that agency under this chapter” and inserting “made by that agency under a chapter 137 legacy provision”; (C) by realigning paragraph (2) 2 ems to the right; and (D) in paragraph (2), by striking “section 2306a” and inserting “chapter 271”. (4) Conforming amendments to new 3841(c).— Subsection (c) of such section 3841, as redesignated by paragraph (1), is amended— (A) by striking “Authority.—(1) The Director of” and inserting “ Authority.— “(1) Authority to require the production of records.— The Director of” ; (B) in paragraph (1), by striking “subsection (a)” and inserting “subsection (b)”; (C) by realigning paragraphs (2) and (3) 2 ems to the right; (D) in paragraph (2), by inserting “Enforcement of subpoena.—” before “Any such subpoena”; and (E) in paragraph (3), by inserting “Authority not delegable.—” before “The authority provided by”. (5) Conforming amendments to new 3841(d).— Subsection (d) of such section 3841, as redesignated by paragraph (1), is amended— (A) by striking “Authority.—(1) Except as” and inserting “ Authority.— “(1) In general.— Except as” ; (B) by realigning paragraphs (2) and (3) 2 ems to the right; (C) in paragraph (2), by inserting “Exception for foreign contractor or subcontractor.—” before “Paragraph (1) does not apply”; and (D) in paragraph (3), by inserting “Additional records not required.—” before “Paragraph (1) may not”. (6) Conforming amendments to new 3841(f).— Subsection (f) of such section 3841, as redesignated by paragraph (1), is amended— (A) by striking “subsection (a)” and inserting “subsection (b)”; and (B) by striking “subsection (c)” and inserting “subsection (d)”. (c) Transfer of Title 10 Sections.— Sections 2313b, 2410b, 2313a, and 204 of title 10, United States Code, are transferred to chapter 279 of such title, as added by subsection (a), inserted (in that order) after section 3841, as amended by subsection (b), and redesignated as sections 3842, 3845, 3847, and 3848, respectively. (d) Amendments to Transferred Sections.— (1) Section 3842 of such title, as so transferred and redesignated, is amended by striking “section 2313a” in subsection (g)(5) and inserting “section 3847”. (2) Section 3845 of such title, as so transferred and redesignated, is amended by striking “(as defined in section 103 of title 41)” in subsection (c). (3) Section 3847 of such title, as so transferred and redesignated, is amended by striking “section 2313b” in subsection (d)(1) and inserting “section 3842”. (4) The heading of section 3848 of such title, as so transferred and redesignated, is amended to read as follows: “§ 3848. Defense audit agencies: Small Business Ombudsmen” . (e) Placeholder Sections.— Chapter 279 of such title, as added and amended by this section, is further amended— (1) by inserting after section 3842, as transferred and redesignated by subsection (c), the following: “§ 3843. Contractor internal audit reports: Department of Defense access to, use of, and safeguards and protections for “[Reserved.] “§ 3844. Contractor business systems “[Reserved.]” ; and (2) by inserting after section 3845, as transferred and redesignated by subsection (c), the following: “§ 3846. Defense Contract Audit Agency: legal resources and expertise “[Reserved.]” . SEC. 1836. CLAIMS AND DISPUTES. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3861. is amended by striking chapter 281 and inserting the following: “CHAPTER 281— CLAIMS AND DISPUTES “Sec. “3861. Research and development contracts: indemnification provisions. “3862. Requests for equitable adjustment or other relief: certification. “3863. Retention of amounts collected from contractor during the pendency of contract dispute.”. (b) Transfer of Sections.— Sections 2354, 2410, and 2410m of title 10, United States Code, are transferred to chapter 281 of such title, as added by subsection (a), inserted (in that order) after the table of sections, and redesignated as sections 3861, 3862, and 3863, respectively. (c) Heading Amendment.— The heading of section 3861 of title 10, United States Code, as so transferred and redesignated, is amended to read as follows: “§ 3861. Research and development contracts: indemnification provisions” . SEC. 1837. FOREIGN ACQUISITIONS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3881. is amended by striking chapter 283 and inserting the following: “CHAPTER 283— FOREIGN ACQUISITIONS “Subchapter Sec. “I. General “II. Prohibition on Contracting with the Enemy “SUBCHAPTER I— GENERAL “Sec. “3881. Contracts: consideration of national security objectives.”. (b) Transfer of Section 2327.— (1) Transfer.— Section 2327 of title 10, United States Code, is transferred to chapter 283 of such title, as added by subsection (a), inserted after the table of sections at the beginning of subchapter I, and redesignated as section 3881. (2) Applicability of definitions.— Such section is amended in subsection (f)(2) by striking “This section does not” and inserting “The provisions of section 3011 of this title apply in this section, except that this section does not”. (c) Future Codification of Sections 841-843 of Fy2015 Ndaa.— Chapter 283 of title 10, United States Code, is further amended by adding at the end the following: “Subchapter II— Prohibition on Contracting With the Enemy “Sec. “3891. [Reserved]. “3892. [Reserved]. “3893. [Reserved].”. SEC. 1838. SOCIOECONOMIC PROGRAMS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 3961. is amended by striking chapter 287 and inserting the following: “CHAPTER 287— SOCIOECONOMIC PROGRAMS “Sec. “3901. Contracts: prohibition on competition between Department of Defense and small businesses. “3902. Credit for Indian contracting in meeting certain subcontracting goals for small disadvantaged businesses. “3903. Subcontracting plans: credit for certain purchases. “3904. Research and educational programs and activities: historically black colleges and universities and minority-serving institutions of higher education. “3905. Products of Federal Prison Industries: procedural requirements.”. (b) Transfer of Sections.— Section 2304e, 2323a, 2410d, 2362, and 2410n of such title are transferred to chapter 285 of such title, as added by subsection (a), inserted (in that order) after the table of sections, and redesignated as section 3901, 3902, 3903, 3904, and 3905, respectively. Subtitle E— Research and Engineering SEC. 1841. RESEARCH AND ENGINEERING GENERALLY. (a) Switching of Subparts E and F.— (1) New subpart e.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended— (A) by striking subparts E and F; and (B) by inserting after subpart D the following new subpart E: “Subpart E— Research and Engineering “CHAPTER 301— RESEARCH AND ENGINEERING GENERALLY “Sec. “4001. Research and development projects. “4002. Research projects: transactions other than contracts and grants. “4003. Authority of the Department of Defense to carry out certain prototype projects. “4004. Procurement for experimental purposes. “4005. [Reserved]. “4006. [Reserved]. “4007. Science and technology programs to be conducted so as to foster the transition of science and technology to higher levels of research, development, test, and evaluation. “4008. Merit-based award of grants for research and development. “4009. Technology protection features activities. “4010. [Reserved]. “4011. [Reserved]. “4012. [Reserved]. “4013. [Reserved]. “4014. Coordination and communication of defense research activities and technology domain awareness. “4015. Award of grants and contracts to colleges and universities: requirement of competition.”. (2) Tables of chapters.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the items relating to subparts E and F and inserting the following: “Subpart E— Research and Engineering “301. Research and Engineering Generally “303. Innovation “305. Department of Defense Laboratories “307. Research and Development Centers and Facilities “309. Test and Evaluation”. (b) Transfer of Title 10 Sections to New Chapter 301.— (1) Transfers.— Sections 2358, 2371, 2371b and 2373 of title 10, United States Code, are transferred to chapter 301 of such title, as added by subsection (a), inserted (in that order) after the table of sections, and redesignated as sections 4001, 4002, 4003, and 4004, respectively. (2) Conforming cross-reference amendments.— (A) Section 4001 of such title, as transferred and redesignated by paragraph (1), is amended— (i) in subsection (b)(5), by striking “sections 2371 or 2371b” and inserting “sections 4002 or 4003”; (ii) in subsection (b)(6), by striking “section 2373” and inserting “sections 4004”; and (iii) in subsection (d), by striking “sections 2371 and 2371a” and inserting “sections 4002 and 4143”. (B) Section 4002 of such title, as so transferred and redesignated, is amended by striking “section 2358” each place it appears and inserting “section 4001”. (C) Section 4003 of such title, as so transferred and redesignated, is amended by striking “section 2371” in subsections (a)(1), (b)(1), and (c)(3)(A) and inserting “section 4002”. (c) Transfer of Additional Title 10 Sections to New Chapter.— Sections 2359, 2374, 2357, and 2361 of title 10, United States Code, are transferred to chapter 301 of such title, as added by subsection (a), added (in that order) after section 4004, as transferred and redesignated by subsection (b), and redesignated as sections 4007, 4008, 4009, and 4015, respectively. (d) Transfer of Section 2364(a).— (1) Transfer.— The heading and subsection (a) of section 2364 of title 10, United States Code, are transferred to chapter 301 of such title, as so amended, inserted after section 4009, as transferred and redesignated by subsection (c), and redesignated as section 4014. (2) Preservation of definition.— Section 4014, as redesignated by paragraph (1), is amended by adding at the end the following new subsection: “(b) Defense Research Facility Defined.— In this section, the term ‘Defense research facility’ has the meaning given that term by section 4142(b) of this title.” . (e) Additional Conforming Cross-reference Amendments.— (1) Sections 1746(d)(1) and 2165(f)(1) of title 10, United States Code, are amended by striking “section 2358” and inserting “section 4001”. (2) Section 218(b)(1) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2501 note) is amended by striking “section 2371b” and inserting “section 4003”. SEC. 1842. INNOVATION. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 301, as added by the preceding section, the following new chapter: “CHAPTER 303— INNOVATION “Sec. “4061. Defense Research and Development Rapid Innovation Program. “4062. Defense Acquisition Challenge Program. “4063. Extramural acquisition innovation and research activities. “4064. Joint reserve detachment of the Defense Innovation Unit. “4065. Prizes for advanced technology achievements. “4066. Global Research Watch Program.”. (b) Transfer of Title 10 Sections.— Sections 2359a, 2359b, 2361a, 2358b, 2374a, and 2365 of title 10, United States Code, are transferred to chapter 303 of such title, as added by subsection (a), inserted (in that order) after the table of sections, and redesignated as sections 4061, 4062, 4063, 4064, 4065, and 4066, respectively. (c) Conforming Cross-reference Amendments.— (1) Section 1089(a) of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91; 10 U.S.C. 2374a note) is amended by striking “section 2374a” and inserting “section 4065”. (2) Section 905(a)(1) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2364 note) is amended by striking “section 2365” and inserting “section 4066”. SEC. 1843. DEPARTMENT OF DEFENSE LABORATORIES. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 303, as added by the preceding section, the following new chapter: “CHAPTER 305— DEPARTMENT OF DEFENSE LABORATORIES “Subchapter “I. General Matters “II. Personnel-Related Matters “SUBCHAPTER I— GENERAL MATTERS “Sec. “4101. [Reserved]. “4102. [Reserved]. “4103. Mechanisms to provide funds for defense laboratories for research and development of technologies for military missions. “SUBCHAPTER II— PERSONNEL-RELATED MATTERS “Sec. “4111. Authorities for certain positions at science and technology reinvention laboratories. “4112. Research and development laboratories: contracts for services of university students.”. (b) Transfer of Title 10 Sections.— (1) Transfer to subchapter i.— Section 2363 of title 10, United States Code, is transferred to subchapter I of chapter 305 of such title, as added by subsection (a), inserted after the table of sections at the beginning of such subchapter, and redesignated as section 4103. (2) Transfers to subchapter ii.— Sections 2358a and 2360 of title 10, United States Code, are transferred to subchapter II of chapter 305 of such title, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of such subchapter, and redesignated as sections 4111 and 4112, respectively. (c) Conforming Cross-reference Amendment.— Section 2805(d)(1)(B) of title 10, United States Code, is amended by striking “section 2363(a)” and inserting “section 4103(a)”. SEC. 1844. RESEARCH AND DEVELOPMENT CENTERS AND FACILITIES. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 305, as added by the preceding section, the following new chapter: “CHAPTER 307— RESEARCH AND DEVELOPMENT CENTERS AND FACILITIES “Sec. “4141. Contracts: acquisition, construction, or furnishing of test facilities and equipment. “4142. Functions of Defense research facilities. “4143. Cooperative research and development agreements under Stevenson-Wydler Technology Innovation Act of 1980. “4144. Use of test and evaluation installations by commercial entities. “4145. Cooperative agreements for reciprocal use of test facilities: foreign countries and international organizations. “4146. Centers for Science, Technology, and Engineering Partnership. “4147. Use of federally funded research and development centers.”. (b) Transfer of Title 10 Sections.— (1) In general.— The sections of title 10, United States Code, specified in the left-hand column of the table below are transferred to chapter 307 of such title, as added by subsection (a), inserted (in that order), after the table of sections, and redesignated as shown in the right-hand column: SectionRedesignated Section 23534141 2371a4143 26814144 2350l4145 23684146 23674147 (2) Clerical amendments.— (A) The table of sections at the beginning of subchapter II of chapter 138 of title 10, United States Code, 10 USC 2350a. is amended by striking the item relating to section 2350l. (B) The table of sections at the beginning of chapter 159 of such title is 10 USC prec. 2661. amended by striking the item relating to section 2681. (c) Conforming Amendments to Transferred Section 4146.— Section 4146 of such title, as transferred and redesignated by subsection (b), is amended— (1) in subsection (b)(3)(B)(ii), by striking “2358, 2371, 2511, 2539b,” and inserting “4001, 4002, 4831, 4892,”; and (2) in subsection (d)(2), by striking “section 219” and all that follows and inserting “section 4103 of this title.”. (d) Transfer of Section 2364(b) and (c).— (1) Heading.— Chapter 307 of title 10, United States Code, as amended by subsection (a), is further amended by inserting after section 4141, as transferred and redesignated by subsection (b), the following: “§ 4142. Functions of Defense research facilities” . (2) Text.— Subsections (b) and (c) of section 2364 of such title are transferred to chapter 307 of such title, as so amended, inserted after the section heading for section 4142 added by paragraph (1), and redesignated as subsections (a) and (b), respectively. (e) Conforming Cross-reference Amendments.— (1) Section 114(b) of title 10, United States Code, is amended by striking “section 2353” and inserting “section 4141”. (2) Section 1644(f)(2) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2224 note) is amended by striking “section 2368” and inserting “section 4146”. SEC. 1845. TEST AND EVALUATION. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 307, as added by the preceding section, the following new chapter: “CHAPTER 309— TEST AND EVALUATION “Sec. “4171. Operational test and evaluation of defense acquisition programs. “4172. Major systems and munitions programs: survivability testing and lethality testing required before full-scale production. “4173. Department of Defense Test Resource Management Center.”. (b) Transfer of Title 10 Sections.— Sections 2399, 2366, and 196 of title 10, United States Code, are transferred to chapter 309 of such title, as amended by subsection (a), inserted after the table of sections (in that order), and redesignated as section 4171, 4172, and 4173, respectively. (c) Conforming Cross-reference Amendments.— (1) Section 139(b)(6) of title 10, United States Code, is amended by striking “section 2366” and inserting “section 4172”. (2) Section 171a(i)(3) of such title is amended by striking “section 2366(e)” and inserting “sections 4172(e)”. (3) Section 2275(g)(3) of such title is amended by striking “section 2366(e)(7)” and inserting “sections 4172(e)(7)”. (4) Section 130i(j)(3)(C)(ix) of such title is amended by striking “section 196(i)” and inserting “sections 4173(i)”. (5) Section 4111 of such title, as transferred and redesignated by section 503(b)(2), is amended by striking “section 196” in subsection (f)(1) and inserting “section 4173”. (6) Section 220(c) of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 10 U.S.C. 221 note) is amended by striking “section 196(h)” and inserting “sections 4173(i)”. Subtitle F— Major Systems, Major Defense Acquisition Programs, and Weapon Systems Development SEC. 1846. GENERAL MATTERS. (a) Tables of Chapters Amendments Showing Chapter Organization for Subpart F.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of Public Law 115–232), of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by inserting before the item for the heading for subpart G of part V the following: “Subpart F— Major Systems, Major Defense Acquisition Programs, and Weapon Systems Development “321. General Matters “322. Major Systems and Major Defense Acquisition Programs Generally “323. Life-Cycle And Sustainment “324. Program Status—Selected Acquisition Reports “325. Cost Growth—Unit Cost Reports (Nunn-McCurdy) “327. Weapon Systems Development and Related Matters”. (b) Designation of Revised Subpart F and Insertion of New Chapter 321.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115– 232), is amended by inserting before subpart G the following new subpart: “Subpart F— Major Systems, Major Defense Acquisition Programs, and Weapon Systems Development “CHAPTER 321— GENERAL MATTERS “Sec. “4201. Major defense acquisition programs: definition; exceptions. “4202. Authority to increase definitional threshold amounts: major defense acquisition programs; major systems. “4203. Major subprograms. “4204. Milestone decision authority. “4205. Weapon systems for which procurement funding requested in budget: development and procurement schedules. “§ 4201. Major defense acquisition programs: definition; exceptions “§ 4202. Authority to increase definitional threshold amounts: major defense acquisition programs; major systems “§ 4204. Milestone decision authority” . (c) Transfer of Subsection (a) of Section 2430.— (1) Headings and internal redesignations.— Subsection (a) of section 2430 of title 10, United States Code, is transferred to section 4201 of such title, as added by subsection (b), inserted after the section heading, and amended— (A) by striking “(1) Except as” and inserting “Definition.—Except as”; (B) by striking “under paragraph (2)” and inserting “under subsection (b)”; (C) by striking “in this chapter” and inserting “in this part”; (D) by redesignating paragraph (2) as subsection (b) and striking “In this chapter” and inserting “Exceptions.—In this part”; and (E) by redesignating subparagraphs (A) and (B) of subsection (a) and of subsection (b), as so redesignated, as paragraphs (1) and (2), respectively. (2) Revisions to new section 4201(a)(2).— Subsection (a)(2) of such section 4201, as redesignated and amended by paragraph (1), is amended— (A) by striking “to require an eventual” and inserting “to require— “(A) an eventual” ; and (B) by striking “or an eventual” and inserting “; or “(B) an eventual” . (3) Revisions to new section 4201(b).— Subsection (b) of such section 4201, as redesignated and amended by paragraph (1)(D), is amended— (A) by striking “include—” and inserting “include the following:”; (B) by striking “an” at the beginning of paragraphs (1) and (2), as redesignated by paragraph (1)(E) and inserting “An”; and (C) by striking “; or” at the end of paragraph (1), as so redesignated, and inserting a period. (d) Transfer of Subsections (b) and (c) of Section 2430.— (1) Transfer and internal redesignations.— Subsections (b) and (c) of section 2430 of title 10, United States Code, are transferred to section 4202 of such title, as added by subsection (b), inserted after the section heading, and amended— (A) by redesignating subsection (b) as subsection (a); (B) by striking the second sentence of that subsection; and (C) by redesignating subsection (c) as paragraph (2), realigning that paragraph 2 ems to the right, and redesignating paragraphs (1), (2), (3), and (4) therein as subparagraphs (A), (B), (C), and (D), respectively. (2) Subsection (a) of such section, as so redesignated, is further amended— (A) by striking “The Secretary” and inserting “ Adjustments to Thresholds for Major Defense Acquisition Programs.— “(1) Authority.— The Secretary” ; (B) by striking “in subsection (a)(1)(B)” and inserting “in section 4201(a)(2) of this title”; (C) in paragraph (2), as redesignated by paragraph (1)(C)— (i) by inserting “Matters to be considered.—” before “For purposes of”; (ii) by striking “subsection (a)(1)(B)” and inserting “section 4201(a)(2) of this title”; (iii) in subparagraph (B), as redesignated by paragraph (1)(C), by striking “section 2366a(a)(6)” and inserting “section 4251(a)(6)”; (iv) in subparagraph (C), as so redesignated, by striking “section 2366b(a)(1)(C)” and inserting “section 4252(a)(1)(C)”; and (v) in subparagraph (D), as so redesignated, by striking “section 2435” and inserting “section 4214”. (e) Transfer of Subsection (c) of Section 2302d.— (1) Transfer and internal redesignations.— Subsection (c) of section 2302d of title 10, United States Code, is transferred to section 4202 of such title, as added by subsection (b), inserted after subsection (a) of that section, as transferred and amended by subsection (d), and amended— (A) by redesignating such subsection as subsection (b); and (B) by redesignating paragraph (3) thereof as subsection (c). (2) Amendments to new 4202(b).— Subsection (b) of section 4202 of such title, as so transferred and redesignated, is amended— (A) by striking “Adjustment authority.—(1) The Secretary” and inserting “ Adjustment Authority for Major Systems.— “(1) Authority.— The Secretary” ; (B) by striking “subsection (a)” and inserting “section 3041(c)(1) of this title”; and (C) by realigning paragraph (2) 2 ems from the left margin and inserting “Rounding.—” in that paragraph after “(2)”. (3) Amendments to new 4202(c).— Subsection (c) of section 4202 of such title, as redesignated by paragraph (1), is amended— (A) by inserting “Notification to Congressional Committees.—” before “An adjustment”; and (B) by striking “under this subsection” and inserting “under subsection (a) or (b)”. (f) Transfer of Subsection (d) of Section 2430.— (1) Transfer and internal redesignations.— Subsection (d) of section 2430 of title 10, United States Code, is transferred to section 4204 of such title, as added by subsection (b), inserted after the section heading, and amended by striking the subsection designation and redesignating paragraphs (1), (2), (3), (4), and (5) as subsections (a), (b), (c), (d), and (f), respectively. (2) Amendments to new section 4204(a).— Subsection (a) of such section 4204, as transferred and redesignated by paragraph (1), is amended— (A) by inserting “Service Acquisition Executive.—” before “The milestone”; and (B) by striking “under paragraph (2)” and inserting “under subsection (b)”. (3) Amendments to new section 4204(b).— Subsection (b) of such section 4204, as redesignated by paragraph (1), is amended— (A) by inserting “Designation of Alternate Milestone Decision Authority.—” before “The Secretary”; (B) by striking “to which—” and inserting “to which any of the following applies:”; (C) by redesignating subparagraphs (A) through (E) as paragraphs (1) through (5), respectively; (D) in paragraph (1), as so redesignated, by striking “subject to paragraph (5)” and inserting “Subject to subsection (f)”; (E) in paragraph (3), as so redesignated, by striking “section 2433” and inserting “sections 4371 through 4375”; (F) by striking “the” at the beginning of paragraphs (2), (3), (4), and (5), as so redesignated, and inserting “The”; (G) by striking the semicolon at the end of paragraphs (1), (2), and (3), as so redesignated, and inserting a period; and (H) by striking “; or” at the end of paragraph (4), as so redesignated, and inserting a period. (4) Amendments to new section 4204(c).— Subsection (c) of section 4204 of such title, as so redesignated, is amended— (A) by striking “(A) After designating” and inserting “ Reversion to Service Acquisition Executive.— “(1) After designating” ; (B) by striking “under paragraph (2)” and inserting “under subsection (b)”; and (C) by redesignating subparagraph (B) as paragraph (2), realigning that paragraph 2 ems from the left margin, and striking “section 2433” and inserting “sections 4371 through 4375”. (5) Amendments to new section 4204(d).— Subsection (d) of section 4204 of such title, as so redesignated, is amended— (A) by striking “(A) For each” and inserting “Certifications relating to program requirements and funding.—For each”; (B) by redesignating subparagraph (B) as subsection (e); (C) by striking “under section 2432 of this title, certify that” and inserting “under sections 4351 through 4358 of this title— “(1) certify that” ; and (D) by striking “the program and identify and report” and inserting “the program; and “(2) identify and report” . (6) Amendments to new section 4204(e).— Subsection (e) of section 4204 of such title, as redesignated by paragraph (5)(B), is amended— (A) by inserting “Documentation and Oversight—” before “The Secretary of Defense”; (B) by striking “programs and shall limit outside requirements” and inserting “programs and shall— “(1) limit outside requirements” ; and (C) by striking “decision authority and ensure that” and inserting “decision authority; and “(2) ensure that” . (7) Amendments to new section 4204(f).— Subsection (f) of section 4204 of such title, as redesignated by paragraph (1), is amended— (A) by inserting “Limitation on Authority to Designate Alternative MDA for Programs Addressing Joint Requirements.—” before “The authority of”; and (B) by striking “in paragraph (2)(A)” and inserting “in subsection (b)(1)”. (8) Conforming repeal.— Section 2430 of title 10, United States Code, is repealed. (g) Transfer of Section 2430a.— Section 2430a of such title is transferred to chapter 321 of such title, as added by subsection (b), inserted after section 4202, redesignated as section 4203, and amended— (1) by striking “section 2432(a)” in subsection (d) and inserting “section 4351”; and (2) by striking “this chapter” each place it appears and inserting “this subpart”. (h) Transfer of Section 2431.— (1) Section 2431 of such title is transferred to chapter 321, as added by subsection (b), added at the end, and redesignated as section 4205. (2) The heading of such section is amended to read as follows: “§ 4205. Weapon systems for which procurement funding requested in budget: development and procurement schedules” . (i) Cross References.— The following provisions of law are amended by striking “section 2430” or “section 2430(a)”, as the case may be, and inserting “section 4201”: (1) Section 139(a)(2)(B) of title 10, United States Code. (2) Section 189(c)(1) of such title. (3) Section 1706(c)(1) of such title. (4) Sections 1731(b)(1)(B)(ii) and 1737(a)(3) of such title. (5) Section 2275(g)(2) of such title. (6) Section 141(a) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; 50 U.S.C. 1521a). SEC. 1847. MAJOR SYSTEMS AND MAJOR DEFENSE ACQUISITION PROGRAMS GENERALLY. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232), is amended by inserting after chapter 321, as added by the preceding section, the following new chapter: “CHAPTER 322— MAJOR SYSTEMS AND MAJOR DEFENSE ACQUISITION PROGRAMS GENERALLY “Subchapter “I. Management “II. Contracting “III. Milestones for Major Defense Acquisition Programs “IV. Additional Provisions Applicable Specifically to Major Defense Acquisition Programs “III. Contractors “SUBCHAPTER I— MANAGEMENT “Sec. “4211. Acquisition strategy. “4212. Risk management and mitigation. “4213. [Reserved]. “4214. Baseline description. “4215. [Reserved]. “4216. [Reserved]. “4217. [Reserved]. “4218. [Reserved]. “SUBCHAPTER II— CONTRACTING “Sec. “4231. Major systems: determination of quantity for low-rate initial production. “4232. Use of lowest price technically acceptable source selection process: prohibition. “4233. [Reserved]. “4234. [Reserved]. “4235. [Reserved]. “4236. Negotiation of price for technical data before development, production, or sustainment of major weapon systems. “SUBCHAPTER III— MILESTONES FOR MAJOR DEFENSE ACQUISITION PROGRAMS “Sec. “4251. Major defense acquisition programs: determination required before Milestone A approval. “4252. Major defense acquisition programs: certification required before Milestone B approval. “4253. Major defense acquisition programs: submissions to Congress on Milestone C. “4254. [Reserved]. “SUBCHAPTER IV— ADDITIONAL PROVISIONS APPLICABLE SPECIFICALLY TO MAJOR DEFENSE ACQUISITION PROGRAMS “Sec. “4271. Program cost, fielding, and performance goals in planning major defense acquisition programs. “4272. Independent technical risk assessments. “4273. Performance assessments and root cause analyses. “4274. Acquisition-related functions of chiefs: adherence to requirements in major defense acquisition programs. “4275. [Reserved]. “4276. [Reserved]. “SUBCHAPTER V— CONTRACTORS “Sec. “4291. [Reserved]. “4292. Contracts: limitations on lead system integrators. “4293. Major defense acquisition programs: incentive program for contractors to purchase capital assets manufactured in United States.”. (b) Subchapter I (management).— (1) Transfer of section 2431a.— (A) Transfer.— Section 2431a of 10, United States Code, is transferred to chapter 322, as added by subsection (a), inserted after the table of sections at the beginning of subchapter I, and redesignated as section 4211. (B) Conforming cross-reference amendments.— Such section is amended— (i) in subsection (c)(2)— (I) in subparagraph (D), by striking “section 2337” and inserting “section 4324”; (II) in subparagraph (F), by striking “section 2320” and inserting “sections 3771 through 3775”; and (III) in subparagraph (H), by striking “section 2306b” and inserting “sections 3501 through 3511”; and (ii) in subsection (e)— (I) in paragraph (4), by striking “section 2366(e)(7)” and inserting “section 4172(e)(7)”; (II) in paragraph (7), by striking “section 2433(a)(4)” and inserting “section 4371(a)(2)”; and (III) in paragraph (8), by striking “section 2433(a)(5)” and inserting “section 4371(a)(3)”. (C) Definitions.— Subsection (e) of such section is further amended— (i) by striking paragraphs (1) and (2); and (ii) redesignating paragraphs (3) through (10) (as amended by subparagraph (B)(ii)) as paragraphs (1) through (8), respectively; (2) Transfer of section 2440.— (A) Transfer.— The text of section 2440 of title 10, United States Code, is transferred to section 4211 of such title, as transferred and redesignated by paragraph (1), inserted at the end of subsection (c), designated as paragraph (3), and amended by striking “section 2501” and inserting “section 4811”. (B) Cross-reference.— Subsection (c)(2)(B) of such section 4211 is amended by striking “section 2440 of this title” and inserting “paragraph (3)”; (3) Transfer of section 2431b.— Section 2431b of such title is transferred to chapter 322 of such title, as added by subsection (a), inserted after section 4211, as transferred and redesignated by paragraph (1) and amended by paragraph (2), redesignated as section 4212, and amended— (A) in subsection (a), by striking “section 2431a” and inserting “section 4211”; and (B) in subsection (d)— (i) by striking “Definitions.—” and all that follows through “The term” and inserting “Concurrency Defined.—In this section, the term”; and (ii) by striking paragraph (2). (4) Transfer of section 2435.— Section 2435 of title 10, United States Code, is transferred to chapter 322 of such title, as added by subsection (a), inserted after section 4212, as transferred and redesignated by paragraph (3), redesignated as section 4214, and amended— (A) in subsections (a)(2) and (d)(2), by striking “section 2433” and inserting “sections 4371 through 4375”; and (B) in subsection (d)— (i) in paragraph (1), by striking “In this chapter” and inserting “In this subpart”; (ii) in paragraph (2), by striking “subsection (d) of such section” and inserting “section 4374 of this title”; and (iii) in paragraph (3), by striking “section 2432” and inserting “sections 4351 through 4358”. (c) Subchapter Ii (contracting).— (1) Transfer of section 2400.— (A) Section 2400 of title 10, United States Code, is transferred to chapter 322 of such title, as added by subsection (a), inserted after the table of sections at the beginning of subchapter II, redesignated as section 4231, and amended— (i) in subsection (a)(5), by striking “section 2432” and inserting “sections 4351 through 4358”; and (ii) in subsection (b)(1), by striking “section 2399” and inserting “section 4171”. (B) The heading of such section is amended to read as follows: “§ 4231. Major systems: determination of quantity for low-rate initial production” . (2) Transfer of section 2442.— Section 2442 of such title is transferred to chapter 322 of such title, as added by subsection (a), inserted after section 4231, as transferred and redesignated by paragraph (1), redesignated as section 4232, and amended in subsection (b) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (3) Transfer of section 2439.— Section 2439 of title 10, United States Code, is transferred to chapter 322, as added by subsection (a), inserted after section 4232, as transferred and redesignated by paragraph (2), and redesignated as section 4236. (d) Subchapter Iii (milestones).— (1) Transfer of section 2366a.— (A) Transfer.— Section 2366a of title 10, United States Code, is transferred to chapter 322 of such title, as added by subsection (a), inserted after the table of sections at the beginning of subchapter III, and redesignated as section 4251. (B) Amendments to subsection (b).— Subsection (b) of such section is amended— (i) in paragraph (4), by striking “section 2448b(a)(1)” and inserting “section 4272(a)(1)”; and (ii) in paragraph (8), by striking “subchapter II of chapter 144B” and inserting “subchapter II of chapter 327”. (C) Amendments to subsection (c).— Subsection (c)(1) of such section is amended— (i) in subparagraph (A), by striking “section 2448a(a)” and inserting “section 4271(a)”; (ii) in subparagraph (C), by striking “section 2334(a)(6)” and inserting “section 3221(b)(6)”; and (iii) in subparagraph (E), by striking “section 2448b” and inserting “section 4272”. (D) Amendments to subsection (d).— Subsection (d) of such section is amended— (i) by striking paragraphs (1) and (6) and redesignating paragraphs (2), (3), (4), (5), (7), (8), (9), and (10) as paragraphs (1), (2), (3), (4), (5), (6), (7), and (8), respectively; (ii) in paragraph (3) (as so redesignated), by striking “section 2366(e)(7)” and inserting “section 4172(e)(7)”; (iii) in paragraph (6) (as so redesignated), by striking “section 2448a(a)” and inserting “section 4271(a)”; and (iv) in paragraph (7) (as so redesignated), by striking “section 2446a(b)(3)” and inserting “section 4401(b)(3)”. (2) Transfer of section 2366b.— (A) Transfer.— Section 2366b of title 10, United States Code, is transferred to chapter 322 of such title, inserted after section 4251, as transferred and redesignated by paragraph (1), and redesignated as section 4252. (B) Amendments to subsection (a).— Subsection (a) of such section is amended— (i) in paragraph (2), by striking “section 2448b” and inserting “section 4272”; and (ii) in paragraph (3)— (I) in subparagraph (D), by striking “section 2435” and “section 2448a(a)” and inserting “section 4214 of this title” and “section 4271(a)”, respectively; and (II) in subparagraph (N), by striking “section 2446b(e)” and inserting “section 4402(e)”. (C) Amendments to subsection (c).— Subsection (c) of such section is amended— (i) in paragraph (1)— (I) in subparagraph (A), by striking “section 2448a(a)” and inserting “section 4271(a)”; (II) in subparagraph (C), by striking “section 2334(a)(6)” and inserting “section 3221(b)(6)”; and (III) in subparagraph (E), by striking “section 2448b” and inserting “section 4272”; and (ii) in paragraph (2)(A), by striking “section 2432” and inserting “sections 4351 through 4358”. (D) Amendments to subsection (d).— Subsection (d)(3) of such section is amended by striking “section 2433a(c)” and inserting “section 4377”. (E) Amendments to subsection (g).— Subsection (g) of such section is amended— (i) by striking paragraphs (1) and (2) and redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (1), (2), (3), (4), (5), and (6), respectively; (ii) in paragraph (2) (as so redesignated), by striking “section 2366(e)(7)” and inserting “section 4172(e)(7)”; (iii) in paragraph (4) (as so redesignated), by striking “section 2448a(a)” and inserting “section 4271(a)”; and (iv) in paragraph (5) (as so redesignated), by striking “section 2446a(b)(3)” and inserting “section 4401(b)(3)”. (3) Transfer of section 2366c.— Section 2366c of title 10, United States Code, is transferred to chapter 322 of such title, inserted after section 4252, as transferred and redesignated by paragraph (3), redesignated as section 4253, and amended by striking “section 2334(a)(6)” in subsection (a)(2) and inserting “section 3221(b)(6)”. (e) Subchapter Iv (additional Provisions Applicable Specifically to Mdaps).— (1) Transfer of section 2448a.— Section 2448a of title 10, United States Code, is transferred to chapter 322 of such title, inserted after the table of sections at the beginning of subchapter IV, redesignated as section 4271, and amended— (A) in subsection (b)(1), by striking “section 2432(a)(2)” and inserting “section 4351(2)”; and (B) in subsection (b)(2), by striking “section 2366a(d)(2)” and inserting “section 4251(d)(1)”. (2) Transfer of section 2448b.— Section 2448b of title 10, United States Code, is transferred to chapter 322 of such title, inserted after section 4271, as transferred and redesignated by paragraph (1), redesignated as section 4272, and amended— (A) in subsection (a)(1), by striking “section 2366a” and inserting “section 4251”; and (B) in subsection (a)(2), by striking “section 2366b” and inserting “section 4252”. (3) Transfer of section 2438.— Section 2438 of title 10, United States Code, is transferred to chapter 322 of such title, inserted after section 4272, as transferred and redesignated by paragraph (2), redesignated as section 4273, and amended— (A) in subsection (b)(2), by striking “section 2433a(a)(1)” and inserting “4376(a)(1)”; and (B) in subsections (b)(5)(A) and (d), by striking “section 2433a” and inserting “sections 4736 and 4377”. (4) Transfer of section 2547(b).— (A) New section.— Chapter 322 of title 10, United States Code, as added by subsection (a), is further amended by inserting after section 4273, as transferred and redesignated by paragraph (3), the following new section: “§ 4274. Acquisition-related functions of chiefs of the armed forces: adherence to requirements in major defense acquisition programs” . (B) Transfer.— Subsection (b) of section 2547 of such title is transferred to section 4274 of such title, as added by subparagraph (A), inserted after the section heading, and amended— (i) by redesignating such subsection as subsection (a); and (ii) by redesignating paragraph (2) as subsection (b). (C) Amendments to new section 4274(a).— Subsection (a) of such section 4274, as so transferred and redesignated, is amended— (i) by striking “Adherence to” and all that follows through “(1)” and inserting “Role of Service Chiefs in Program Capability Document Approval.—”; and (ii) by striking “section 2448a(a)” and inserting “4271(a)”. (D) Amendments to new section 4274(b).— Subsection (b) of such section 4274, as redesignated by subparagraph (B)(ii), is amended— (i) by inserting “Role of Service Chiefs in Material Development Decision and Acquisition System Milestones.—” before “Consistent with”; (ii) by striking “under subsection (a)” and inserting “under section 3053 of this title”; (iii) by redesignating subparagraphs (A), (B), (C), and (D) as paragraphs (1), (2), (3), and (4), respectively; (iv) in paragraph (2), as so redesignated, by striking “section 2366a” and inserting “section 4251”; and (v) in paragraph (3), as so redesignated, by striking “section 2366b” and inserting “section 4252”. (5) Restatement of section 2547(c) & (d)(3).— Such section 4274 is further amended by adding at the end— (A) a new subsection (c) identical to section 2547(c) of such title, as in effect on the day before the effective date of this section; and (B) a new subsection (d) as follows: “(d) Program Capability Document Defined.— In this section, the term ‘program capability document’ has the meaning provided that term in section 4401(b)(5) of this title.” . (6) Cross-reference amendments.— (A) Section 131(b)(8) of title 10, United States Code, is amended by striking “section 2438(a)” in the last subparagraph and inserting “section 4273(a)”. (B) Sections 7033(d)(5), 8033(d)(5), 8043(e)(5), and 9033(d)(5) of such title are amended by striking “and 2547” and inserting “, 3103, and 4274”. (f) Subchapter V (contractors).— (1) Transfer of section 2410p.— Section 2410p of title 10, United States Code, is transferred to subchapter V of chapter 322, as added by subsection (a), inserted after the table of sections, and redesignated as section 4292. (2) Transfer of section 2436.— Section 2436 of such title is transferred to chapter 322 of such title, inserted after section 4292, as added by paragraph (1), and redesignated as section 4293. SEC. 1848. LIFE-CYCLE AND SUSTAINMENT. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 322, as added by the preceding section, the following new chapter: “CHAPTER 323— LIFE-CYCLE AND SUSTAINMENT “Sec. “4321. Development of major defense acquisition programs: sustainment of system to be replaced. “4322. [Reserved]. “4323. Sustainment reviews. “4324. Major systems: life-cycle management and product support. “4325. Major weapon systems: assessment, management, and control of operating and support costs. “4326. [Reserved]. “4327. [Reserved]. “4328. Weapon system design: sustainment factors.”. (b) Transfer of Section 2437.— Section 2437 of title 10, United States Code, is transferred to chapter 323 of such title, as added by subsection (a), inserted after the table of sections at the beginning, and redesignated as section 4321. (c) Transfer of Section 2441.— Section 2441 of title 10, United States Code, is transferred to chapter 323 of such title, as added by subsection (a), inserted after section 4321, as transferred and redesignated by subsection (b), redesignated as section 4323, and amended by striking “sections 2337 and 2337a” in subsection (c) and inserting “sections 4324 and 4325”. (d) Transfer of Sections 2337 and 2337a.— (1) Transfer.— Sections 2337 and 2337a of title 10, United States Code, are transferred to chapter 323 of such title, as added by subsection (a), inserted (in that order) after section 4323, as transferred and redesignated by subsection (c), and redesignated as sections 4324 and 4325, respectively. (2) Amendment to transferred section 4324.— Section 4324 of title 10, United States Code, as transferred and redesignated by paragraph (1), is amended by striking “section 2302d(a)” in subsection (c)(5) and inserting “section 3041(c)(1)”. (3) Amendments to transferred section 4325.— (A) Section 4325 of such title, as transferred and redesignated by paragraph (1), is amended— (i) in subsection (b)(1), by striking “section 2337” and inserting “section 4324”; and (ii) in subsection (d), by striking “section 2379(f)” and inserting “section 3455(f)”. (B) The heading of such section is amended to read as follows: “§ 4325. Major weapon systems: assessment, management, and control of operating and support costs” . (e) Transfer of Section 2443.— (1) Section 2443 of title 10, United States Code, is transferred to chapter 323, as added by subsection (a), inserted after section 4235, as transferred and redesignated by subsection (d), and redesignated as section 4328. (2) The heading of such section is amended to read as follows: “§ 4328. Weapon system design: sustainment factors” . SEC. 1849. PROGRAM STATUS–SELECTED ACQUISITION REPORTS. (a) Restatement of Section 2432.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 323, as added by the preceding section, the following new chapter: “CHAPTER 324— PROGRAM STATUS–SELECTED ACQUISITION REPORTS “Sec. “4350. Selected acquisition reports: termination. “4351. Selected acquisition reports: definitions. “4352. Selected acquisition reports: requirement for quarterly reports. “4353. Selected acquisition reports for 1st quarter of a fiscal year: comprehensive annual report. “4354. Selected acquisition reports for 2d, 3d, and 4th quarters. “4355. Selected acquisition reports: quarterly SAR report content. “4356. Selected acquisition reports: time for submission to Congress; form of report. “4357. Selected acquisition reports: termination of requirements with respect to a program or subprogram. “4358. Selected acquisition reports: when total program reporting begins; limited reports before approval to proceed to system development and demonstration. “§ 4350. Selected acquisition reports: termination “§ 4351. Selected acquisition reports: definitions “§ 4352. Selected acquisition reports: requirement for quarterly reports “§ 4353. Selected acquisition reports for 1st quarter of a fiscal year: comprehensive annual report “§ 4354. Selected acquisition reports for 2d, 3d, and 4th quarters “§ 4355. Selected acquisition reports: quarterly SAR report content “§ 4356. Selected acquisition reports: time for submission to Congress; form of report “§ 4357. Selected acquisition reports: termination of requirements with respect to a program or subprogram “§ 4358. Selected acquisition reports: when total program reporting begins; limited reports before approval to proceed to system development and demonstration” . (b) Transfer of Subsection (j) of Section 2432.— Subsection (j) of section 2432 of title 10, United States Code, is transferred to section 4350 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation and subsection heading; and (2) by striking “this section” and inserting “this chapter”. (c) Transfer of Subsection (a) of Section 2432.— Subsection (a) of section 2432 of title 10, United States Code, is transferred to section 4351 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation; (2) in paragraph (1), by inserting “Program acquisition unit cost.—” after “(1)”; (3) in paragraph (2), by inserting “Procurement unit cost.—” after “(2)”; (4) in paragraph (3), by inserting “Major contract.—” after “(3)” ; and (5) in paragraph (4), by inserting “Full life-cycle cost.—” after “(4)”. (d) Transfer of Subsection (b) of Section 2432.— (1) Transfer.— Subsection (b) of section 2432 of title 10, United States Code, is transferred to section 4352 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively. (2) Revisions to new 4352(a).— Subsection (a) of such section 4352, as redesignated by paragraph (1)(B), is amended— (A) by striking “The Secretary” and inserting “ In General.— “(1) The Secretary” ; (B) by striking “a report on” and all that follows in the first sentence and inserting “a report on— “(A) current major defense acquisition programs; and “(B) any program that is estimated by the Secretary of Defense to require— “(i) an eventual total expenditure for research, development, test, and evaluation of more than $300,000,000 (based on fiscal year 1990 constant dollars); or “(ii) an eventual total expenditure for procurement, including all planned increments or spirals, of more than $1,800,000,000 (based on fiscal year 1990 constant dollars).” ; (C) by designating the second and third sentences as paragraphs (2) and (3), respectively, and realigning those paragraphs 2 ems from the left margin; (D) in paragraph (2), as so designated, by striking “paragraphs (2) and (3)” and inserting “subsections (b) and (c)” ; and (E) in paragraph (3), as so designated, by striking “this section” and inserting “this chapter”. (3) Revisions to new 4352(b).— Subsection (b) of such section 4352, as redesignated by paragraph (1)(B), is amended— (A) by inserting “Reports Not Required for 2d, 3d, and 4th Quarters for Certain Programs.—” before “A status report”; and (B) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (4) Revisions to new 4352(c).— Subsection (c) of such section 4352, as redesignated by paragraph (1)(B), is amended— (A) by striking “(A) The Secretary” and inserting “ Secretary of Defense Waiver Authority.— “(1) Authority.— The Secretary” ; (B) by redesignating subparagraph (B) as paragraph (2) and realigning that paragraph 2 ems from the left margin; (C) by redesignating clauses (i), (ii), and (iii) of paragraph (1), as designated by the amendment made by subparagraph (A), as subparagraphs (A), (B), and (C), respectively, and realigning those subparagraphs 4 ems from the left margin; and (D) in paragraph (2), as redesignated by subparagraph (B)— (i) by inserting “Notification to congressional committees.—” before “The Secretary shall”; and (ii) by striking “subparagraph (A)” and inserting “paragraph (1)”. (e) Transfer of Subsection (c) of Section 2432.— (1) Transfer.— Subsection (c) of section 2432 of title 10, United States Code, is transferred to section 4353 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1), (2), (3), and (4) as subsections (a), (b), (c), and (d), respectively. (2) Revisions to new 4353(a).— Subsection (a) of such section 4353, as redesignated by paragraph (1)(B), is amended as follows: (A) Subsection heading.— Such subsection is amended by inserting “Content of Sar Submitted for First Quarter.—” before “Each Selected Acquisition Report for”. (B) Internal redesignations.— Such subsection is further amended— (i) by redesignating subparagraphs (A) through (H) as paragraphs (1) through (8), respectively; and (ii) by redesignating clauses (i) through (iv) of paragraph (2), as so redesignated, as subparagraphs (A) through (D), respectively. (C) Revision of list format.— Such subsection is further amended— (i) by striking “for a fiscal year shall include—” in the matter preceding such paragraph (1), as so redesignated, and inserting “for a fiscal year shall include the following:”; (ii) in each of such paragraphs (1) through (8), as so redesignated, by capitalizing the first letter of the first word after the paragraph designation; (iii) in each of such paragraphs (1) through (6), as so redesignated, by striking the semicolon at the end and inserting a period; and (iv) by striking “; and” at the end of paragraph (7), as so redesignated, and inserting a period. (D) Conforming cross-reference amendments.— Such subsection is further amended— (i) by striking “section 2431” in paragraph (1), as so redesignated, and inserting “section 4205”; (ii) by striking “section 2433(a)(2)” in paragraph (2)(A), as so redesignated, and inserting “section 4371(a)(4)”; (iii) by striking “section 2435(d)(1)” in paragraph (2)(B), as so redesignated, and inserting “section 4214(d)(1)”; (iv) by striking “section 2435(d)(2)” in paragraph (2)(C), as so redesignated, and inserting “section 4214(d)(2)”; (v) by striking “section 2432(e)(4)” in paragraph (2)(D), as so redesignated, and inserting “section 4355(4)”; and (vi) by striking “section 2446a” in paragraph (7), as so redesignated, and inserting “section 4401”. (3) Revisions to new 4353(b).— Subsection (b) of such section 4353, as redesignated by paragraph (1)(B), is amended— (A) by striking “Each Selected” and inserting “ Congressional Committees.— “(1) Information needed by congressional committees.— Each Selected” ; and (B) by designating the text after the first sentence as paragraph (2), aligning that paragraph 2 ems from the left margin, and inserting “Notification to congressional committees of proposed changes.—” before “Whenever the Secretary”. (4) Revisions to new 4353(c).— Subsection (c) of such section 4353, as redesignated by paragraph (1)(B), is amended— (A) by inserting “Life-cycle Cost Analyses.—” before “In addition to”; (B) by striking “paragraphs (1) and (2)”; and inserting “subsections (a) and (b)”, and (C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (5) Revision to new 4353(d).— Subsection (d) of such section 4353, as redesignated by paragraph (1)(B), is amended by inserting “Reference to 1st Quarter Sar as Comprehensive Annual Sar.—” before “Selected Acquisition Reports”. (f) Transfer of Subsection (d) of Section 2432.— (1) Transfer.— Subsection (d) of section 2432 of title 10, United States Code, is transferred to section 4354 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation. (2) Conforming amendments and subsection headings.— Such section is amended— (A) by redesignating paragraphs (1) and (2) as subsections (a) and (b), respectively; (B) in subsection (a), as so redesignated— (i) by inserting “Contingent Required Content.—” before “Each Selected Acquisition Report”; (ii) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (iii) in paragraph (1), as so redesignated, by striking “subsection (e)” and inserting “section 4355 of this title”; and (iv) in paragraph (2), as so redesignated, by striking “subsection (c)” and inserting “section 4353 of this title”; and (C) in subsection (b), as so redesignated, by inserting “Reference to 2d, 3d, and 4th Quarters SARS as Quarterly SARS.—” before “Selected Acquisition Reports for”. (g) Transfer of Subsection (e) of Section 2432.— Subsection (e) of section 2432 of title 10, United States Code, is transferred to section 4355 of such title, as added by subsection (a), inserted after the section heading, and amended by striking the subsection designation. (h) Transfer of Subsection (f) of Section 2432.— (1) Transfer.— Subsection (f) of section 2432 of title 10, United States Code, is transferred to section 4356 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (2) Subsection heading.— Such subsection is amended by inserting “Time for Submission.—” before “Each comprehensive”. (i) Transfer of Subsection (i) of Section 2432.— Subsection (i) of section 2432 of title 10, United States Code, is transferred to section 4356 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by subsection (h)(1), redesignated as subsection (b), and amended by striking “under this section” and inserting “under this chapter”. (j) Transfer of Subsection (g) of Section 2432.— Subsection (g) of section 2432 of title 10, United States Code, is transferred to section 4357 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation; and (2) by striking “of this section” and inserting “of this chapter”. (k) Transfer of Subsection (h) of Section 2432.— (1) Transfer.— Subsection (h) of section 2432 of title 10, United States Code, is transferred to section 4358 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively. (2) Revisions to new 4358(a).— Subsection (a) of such section 4358, as redesignated by paragraph (1)(B), is amended— (A) by striking “Total program reporting under this section” and inserting “ In General.— “(1) Commencement of total program reporting.— Total program reporting under this chapter” ; and (B) by designating the second sentence as paragraph (2) and in that paragraph— (i) by inserting “Limited reports.—” before “Reporting may be”; (ii) by striking “paragraph (2)” and inserting “subsection (b)”; (iii) by striking “under this subsection” and inserting “under this section”; and (iv) by striking “under this section.” and inserting “under this chapter.”. (3) Revisions to new 4358(b).— Subsection (b) of such section 4358, as redesignated by paragraph (1)(B), is amended— (A) by inserting “Content of Limited Reports.—” before “A limited report”; (B) by striking “under this subsection” and inserting “under this section”; (C) by redesignating subparagraphs (A) through (E) as paragraphs (1) through (5), respectively; and (D) in paragraph (1), as so redesignated, by striking “section 2431” and inserting “section 4205”. (4) Revisions to new 4358(c).— Subsection (c) of such section 4358, as redesignated by paragraph (1)(B), is amended— (A) by inserting “Submission of Limited Reports.—” before “The submission requirements”; and (B) by striking “under this subsection” and inserting “under this section”. (l) Conforming Amendments.— Section 2432 of title 10, United States Code, is repealed. (m) Conforming Cross-reference Amendments.— Sections 1734(c)(2) and 8671(b)(2) of title 10, United States Code, are amended by striking “section 2432” and inserting “chapter 324”. SEC. 1850. COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY). (a) Restatement of Sections 2433 and 2433a.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 324, as added by the preceding section, the following new chapter: “CHAPTER 325— COST GROWTH—UNIT COST REPORTS (NUNN-MCCURDY) “Sec. “4371. Cost growth definitions; applicability of reporting requirements; constant base year dollars. “4372. Unit cost reports: quarterly report from program manager to service acquisition executive. “4373. Unit cost reports: immediate report from program manager to service acquisition executive upon breach of significant cost growth threshold. “4374. Unit cost reports: determinations by service acquisition executive and secretary concerned of breach of significant cost growth threshold or critical cost growth threshold; reports to Congress. “4375. Breach of significant cost growth threshold or critical cost growth threshold: required action. “4376. Breach of critical cost growth threshold: reassessment of program; presumption of program termination. “4377. Breach of critical cost growth threshold: actions if program not terminated. “§ 4371. Cost growth definitions; applicability of reporting requirements; constant base year dollars “§ 4372. Unit cost reports: quarterly report from program manager to service acquisition executive “§ 4373. Unit cost reports: immediate report from program manager to service acquisition executive upon breach of significant cost growth threshold “§ 4374. Unit cost reports: determinations by service acquisition executive and secretary concerned of breach of significant cost growth threshold or critical cost growth threshold; reports to Congress “§ 4375. Breach of significant cost growth threshold or critical cost growth threshold: required action “§ 4376. Breach of critical cost growth threshold: reassessment of program; presumption of program termination “§ 4377. Breach of critical cost growth threshold: actions if program not terminated” . (b) Transfer of Subsection (a) of Section 2433.— (1) Transfer.— Subsection (a) of section 2433 of title 10, United States Code, is transferred to section 4371 of such title, as added by subsection (a), inserted after the section heading, and amended by striking “this section” in the matter preceding paragraph (1) and in paragraph (2) and inserting “this chapter”. (2) Insertion of side headings.— Such subsection is further amended— (A) in the matter preceding paragraph (1), by inserting “Definitions.—” after “(a)”; (B) in paragraph (1), by inserting “Program acquisition unit cost; procurement unit cost; major contract.—” after “(1)”; (C) in paragraph (2), by inserting “Baseline estimate.—” after “(2)”; (D) in paragraph (3), by inserting “Procurement program.—” after “(3)”; (E) in paragraph (4), by inserting “Significant cost growth threshold.—” after “(4)”; (F) in paragraph (5), by inserting “Critical cost growth threshold.—” after “(5)”; and (G) in paragraph (6), by inserting “Original baseline estimate.—” after “(6)”. (3) Conforming cross-reference amendments.— Such subsection is further amended— (A) in paragraph (1)— (i) by striking “section 2430a(d)” and inserting “section 4203(d)”; and (ii) by striking “section 2432(a)” and inserting “section 4351”; (B) in paragraph (2), by striking “section 2435” and inserting “section 4214”; and (C) in paragraph (6), by striking “section 2435(d)” and inserting “section 4214(d)”. (4) Revision of order of paragraphs.— Such subsection is further amended— (A) by redesignating paragraphs (2), (3), (4), (5), and (6) as paragraphs (4), (6), (2), (3), and (5), respectively; and (B) by revising the order of those paragraphs within that section so they appear in the numeric order of their respective paragraph designations, as redesignated by paragraph (A). (c) Transfer of Subsection (h) of Section 2433.— Subsection (h) of section 2433 of title 10, United States Code, is transferred to section 4371 of such title, as added by subsection (a), inserted after subsection (a), as transferred and redesignated by subsection (b)(1), redesignated as subsection (b), and amended— (1) by striking “under this section” and inserting “under this chapter”; and (2) by striking “section 2432(h)” and inserting “section 4358”. (d) Transfer of Subsection (f) of Section 2433.— Subsection (f) of section 2433 of title 10, United States Code, is transferred to section 4371 of such title, as added by subsection (a), inserted after subsection (b), as transferred and redesignated by subsection (c), redesignated as subsection (c), and amended— (1) by striking “under this section” and inserting “under this chapter”; and (2) by striking “section 2430” and inserting “section 4202”. (e) Transfer of Subsection (b) of Section 2433.— (1) Transfer.— Subsection (b) of section 2433 of title 10, United States Code, is transferred to section 4372 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (2) Designation of new subsection (b).— Such section 4372, as redesignated by paragraph (1), is amended by designating the third sentence as subsection (b) and inserting “Matter to Be Included in Unit Cost Reports.—” therein before “The program manager shall”. (3) Designation of new paragraphs (1) and (2).— Subsection (a) of such section, as redesignated by paragraph (1), is amended— (A) by striking “The program manager for” and inserting “ Required Reports.— “(1) Requirement.— The program manager for” ; and (B) by designating the second sentence as paragraph (2) and inserting “Time for submittal.—” before “Each report”. (4) Conforming cross-reference amendments.— Such section is further amended— (A) in paragraph (1) of subsection (a), as designated by paragraph (3)(A), by striking “section 2432(b)(3)” and inserting “section 4352(c)”; and (B) in paragraph (4) of subsection (b), as designated by paragraph (2), by striking “section 2435” and inserting “section 4214”. (f) Transfer of Subsection (c) of Section 2433.— Subsection (c) of section 2433 of title 10, United States Code, is transferred to section 4373 of such title, as added by subsection (a), inserted after the section heading, and amended— (1) by striking the subsection designation; and (2) by striking “subsection (b)” both places it appears and inserting “section 4372 of this title”. (g) Transfer of Subsection (d) of Section 2433.— (1) Transfer.— Subsection (d) of section 2433 of title 10, United States Code, is transferred to section 4374 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively. (2) Revision to new 4374(a).— Subsection (a) of such section, as so redesignated, is amended— (A) by inserting “Determination of Breach by Service Acquisition Executive.—” before “When a”; and (B) by striking “under this section” and inserting “under this chapter”. (3) Revision to new 4374(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by inserting “Additional Determination by Service Acquisition Executive When Program or Subprogram Is a Procurement Program.—” before “When a”; (B) by striking “under this section” and inserting “under this chapter”; and (C) by striking “paragraph (1)” and inserting “subsection (a)”. (4) Revision to new 4374(c).— Subsection (c) of such section, as so redesignated, is amended— (A) by striking “If, based upon” and inserting “ Determination of Breach by Secretary Concerned; Notification to Congress.— “(1) In general.— If, based upon” ; (B) by designating the second sentence as paragraph (2) and the fourth sentence as paragraph (3); (C) in paragraph (2), as so designated— (i) by inserting “Time for submission of notification to congress.—” before “In the case of” the first place it appears; (ii) by striking “subsection (b)” and inserting “section 4372 of this title”; and (iii) by striking “subsection (c)” and inserting “section 4373 of this title”; and (D) in paragraph (3), as so designated, by inserting “Inclusion of date of determination.—” before “The Secretary shall”. (h) Transfer of Subsection (e) of Section 2433.— (1) Transfer.— Subsection (e) of section 2433 of title 10, United States Code, is transferred to section 4375 of such title, as added by subsection (a), inserted after the section heading, and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1), (2), and (3) as subsections (a), (b), and (c), respectively. (2) Revision to new 4375(a).— Subsection (a) of such section, as so redesignated, is amended— (A) by striking “(A) Except as provided in subparagraph (B),” and inserting “ Breach of significant cost growth threshold; submission of a selected acquisition report.— “(1) General rule.— Except as provided in paragraph (2),” ; (B) by redesignating subparagraph (B) as paragraph (2); (C) in paragraph (1), as so designated— (i) by striking “under subsection (d)” and inserting “under section 4374 of this title”; and (ii) by striking “section 2432(e)” and “section 2432(f)” and inserting “section 4355” and “section 4356”, respectively; and (D) in paragraph (2), as so designated— (i) by striking “subparagraph (A)” both places it appears and inserting “paragraph (1)”; and (ii) by striking “subsection (g)” and inserting “subsection (d)”. (3) Revision to new 4375(b).— Subsection (b) of such section, as so redesignated, is amended— (A) by inserting “Breach of Critical Cost Growth Threshold.—” before “If the program”; (B) by striking “subsection (d)” and inserting “section 4374 of this title”; and (C) by striking “section 2433a” and inserting “sections 4376 and 4377”. (4) Revision to new 4375(c).— Subsection (c) of such section, as so redesignated, is amended— (A) by striking “If a determination” and inserting “ Prohibition on Obligation of Funds for Certain Purposes When Required Action Not Taken.— “(1) Prohibition.— If a determination” ; (B) by designating the second sentence as paragraph (2); (C) in paragraph (1), as so designated— (i) by striking “subsection (d)” both places it appears and inserting “section 4374 of this title”; (ii) by striking “subsection (g)” and inserting “subsection (d)”. (iii) by striking “paragraph (1)” and inserting “subsection (a)”; and (iv) by striking “paragraph (2)” and inserting “subsection (b)”; and (D) in paragraph (2), as so designated— (i) by striking “The prohibition” and inserting “Termination of prohibition.—The prohibition under paragraph (1)”; (ii) in subparagraph (A)— (I) by striking “paragraph (1) or (2)(B)” and inserting “subsection (a) or (b)(2)”; and (II) by striking “subsection (d)” and inserting “section 4374 of this title”; and (iii) in subparagraph (B)— (I) by striking “paragraph (1) or (2)(B)” and inserting “subsection (a) or (b)(2)”; (II) by striking “paragraph (2)(A)” and inserting “subsection (b)(1)”; and (III) by striking “subsection (d)” and inserting “section 4374 of this title”. (i) Transfer of Subsection (g) of Section 2433.— (1) Transfer.— Subsection (g) of section 2433 of title 10, United States Code, is transferred to section 4375 of such title, as added by subsection (a), inserted after subsection (c), as transferred and amended by subsection (h), and amended— (A) by striking the subsection designation; and (B) by redesignating paragraphs (1) and (2) as subsections (d) and (e), respectively. (2) Revision to new 4375(d).— Subsection (d) of such section 4375, as so redesignated, is amended— (A) by striking “Except as provided in paragraph (2), each report under subsection (e)” and inserting “Matter to Be Included in Reports.—Except as provided in subsection (e), each report under this section”; (B) by redesignating subparagraphs (A) through (Q) as paragraphs (1) through (17), respectively; (C) in paragraph (9), as so redesignated, by striking “section 2435” and inserting “section 4214”; and (D) in paragraph (16), as so redesignated, by redesignating clauses (i) through (vi) as subparagraphs (A) through (F), respectively. (3) Revision to new 4375(e).— Subsection (e) of such section 4375, as so redesignated, is amended— (A) by striking “If a program acquisition unit cost” and inserting “ Breach Due to Termination or Cancellation of Program or Subprogram.— “(1) Limited reporting.— If a program acquisition unit cost” ; (B) by striking “clauses (A) through (F) of paragraph (1)” and inserting “paragraphs (1) through (6) of subsection (d)”; (C) by designating the second sentence as paragraph (2); and (D) in paragraph (2), as so designated— (i) by inserting “Certification not required.—” before “The certification”; and (ii) by striking “subsection (e)” and inserting “subsection (b)”. (j) Transfer of Subsection (a), (b), and (d) of Section 2433a.— (1) Transfer of subsections (a) and (b).— Subsection (a) and (b) of section 2433a of title 10, United States Code, are transferred to section 4376 of such title, as added by subsection (a), and inserted after the section heading. (2) Transfer and redesignation of subsection (d).— Subsection (d) of section 2433a of such title is transferred to such section 4376, inserted after subsection (b), as transferred by paragraph (1), and redesignated as subsection (c). (3) Conforming cross-reference amendments.— Such section 4376 is amended— (A) in subsection (a), by striking “section 2433(d)” and inserting “section 4374”; and (B) in subsection (b)(1)— (i) by striking “section 2433(g)” and inserting “section 4375(d) and (e)”; and (ii) by striking “section 2432(f)” and inserting “section 4356(a)”. (4) Headings and format in subsection (b).— Subsection (b) of such section 4376 is amended— (A) by striking “Termination.—(1) After conducting” and inserting “ Termination.— “(1) Termination unless secretary submits certification and report.— After conducting” ; (B) by realigning paragraphs (2) and (3) 2 ems from the left margin; (C) in paragraph (2), by inserting “Certification.—” after “(2)”; and (D) in paragraph (3), by inserting “Report.—” after “(3)”. (k) Transfer of Subsection (c) of Section 2433a.— (1) Transfer.— Subsection (c) of section 2433a of title 10, United States Code, is transferred to section 4377 of such title, as added by subsection (a), inserted after the section heading, and redesignated as subsection (a). (2) Redesignations.— Paragraphs (2) and (3) of such section 4377 are redesignated as subsections (b) and (c), respectively. (3) Revision to new section 4377(a).— Subsection (a) of such section, as redesignated by paragraph (1), is amended— (A) by striking “(1)” before “If the Secretary”; (B) by inserting “of section 4376 of this title” after “subsection (b)”; (C) by redesignating subparagraphs (A), (B), (C), (D), and (E) as paragraphs (1), (2), (3), (4), and (5), respectively; (D) in paragraph (1), as so redesignated, by inserting “of that section” after “subsection (a)” and after “subsection (b)(2)(E)”; (E) in paragraph (2), as so redesignated, by striking “section 2366a or 2366b” and inserting “section 4251 or 4252”; and (F) in paragraph (4), as so redesignated, by striking “paragraph (2)” and inserting “subsection (b)”. (4) Revision to new section 4377(b).— Subsection (b) of such section, as redesignated by paragraph (2), is amended— (A) by inserting “Identification of Report for Description of Funding Changes.—” before “For purposes of”; (B) by striking “paragraph (1)(D)” and inserting “subsection (a)(4)”; (C) by striking “in this paragraph” and inserting “in this subsection”; and (D) by striking “section 2432” and inserting “section 4352”. (5) Redesignations and headings in new section 4377(c).— Subsection (c) of such section, as redesignated by paragraph (2), is amended— (A) by striking “(A) The requirements of subparagraphs (B), (C), and (E) of paragraph (1)” and inserting “ Inapplicability of Certain Subsection (a) Requirements. — “(1) Conditions for inapplicability.— The requirements of paragraphs (2), (3), and (5) of subsection (a)” ; and (B) by redesignating subparagraph (B) as paragraph (2) and inserting “Cost growth thresholds.—” therein before “The cost growth thresholds”. (6) Revisions to new 4377(c)(1).— Paragraph (1) of such section 4377(c), as so designated, is amended— (A) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively; (B) by redesignating subclauses (I) and (II) of each of subparagraphs (A) and (C) as clauses (i) and (ii), respectively; (C) in subparagraph (A), as so redesignated— (i) in the matter preceding clause (i), as so redesignated, by striking “pursuant to subsection (a)” and inserting “pursuant to section 4376(a) of this title”; (ii) in clause (i), as so redesignated, by striking “subparagraph (B)” and inserting “paragraph (2)”; and (iii) in clause (ii), as so redesignated, by striking “subclause (I)” and inserting “clause (i)”; and (D) in subparagraph (C), as so redesignated— (i) in the matter preceding clause (i), as so redesignated— (I) by striking “section 2433(g)” and inserting “subsections (d) and (e) of section 4375”; and (II) by striking “section 2432(f)” and inserting “section 4356”; (ii) in clause (i), as so redesignated, by striking “clause (i)” and inserting “subparagraph (A)”; and (iii) in clause (ii), as so redesignated, by striking “clause (ii)” and inserting “subparagraph (B)”. (7) Revisions to new 4377(c)(2).— Paragraph (2) of such section 4377(c), as so designated, is amended— (A) in the matter preceding clause (i), by striking “this subparagraph” and inserting “this paragraph”; (B) by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively; and (C) by redesignating subclauses (I) and (II) of each of subparagraphs (A) and (B) as clauses (i) and (ii), respectively. (l) Conforming Repeals.— Sections 2433 and 2433a of title 10, United States Code, are repealed. (m) Cross Reference.— Section 181(b)(6) of title 10, United States Code, is amended by striking “2433(e)(2)” and inserting “4375(b)”. SEC. 1851. WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 325, as added by the preceding section, the following new chapter: “CHAPTER 327— WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS “Subchapter “I. Modular Open System Approach in Development of Weapon Systems “II. Development, Prototyping, and Deployment of Weapon System Components or Technology “SUBCHAPTER I— MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF WEAPON SYSTEMS “Sec. “4401. Requirement for modular open system approach in major defense acquisition programs; definitions. “4402. Requirement to address modular open system approach in program capabilities development and acquisition weapon system design. “4403. Requirements relating to availability of major system interfaces and support for modular open system approach. “SUBCHAPTER II— DEVELOPMENT, PROTOTYPING, AND DEPLOYMENT OF WEAPON SYSTEM COMPONENTS OR TECHNOLOGY “Sec. “4421. Weapon system component or technology prototype projects: display of budget information. “4422. Weapon system component or technology prototype projects: oversight. “4423. Requirements and limitations for weapon system component or technology prototype projects. “4424. Mechanisms to speed deployment of successful weapon system component or technology prototypes. “4425. Definition of weapon system component.”. (b) Transfer of Sections of Subchapter I of Chapter 144b.— (1) Transfer.— Sections 2446a, 2446b, and 2446c of chapter 144B of title 10, United States Code, are transferred to chapter 327, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of subchapter I, and redesignated as sections 4401, 4402, and 4403, respectively. (2) Conforming cross-reference amendments to section 4401.— Section 4401 of title 10, United States Code, as so transferred and redesignated, is amended— (A) in subsection (b)(1)(D), by striking “section 2320” and inserting “sections 3771 through 3775”; (B) in subsection (b)(6), by striking “section 2448a(a)” and inserting “section 4271(a)”; (C) in subsection (b)(7), by striking “section 2430” and inserting “section 4201”; and (D) in subsection (b)(8), by striking “section 2379(f)” and inserting “section 3455(f)”. (3) Conforming cross-reference amendments to section 4402.— Section 4402 of such title, as so transferred and redesignated, is amended— (A) in subsection (c), by striking “section 2431a” and inserting “section 4211”; and (B) in subsection (e), by striking “section 2366b” and inserting “section 4252”. (c) Transfer of Sections of Subchapter Ii of Chapter 144b.— (1) Transfer.— Sections 2447a, 2447b, 2447c, 2447d, and 2447e of chapter 144B of title 10, United States Code, are transferred to chapter 327, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of subchapter II, and redesignated as sections 4421, 4422, 4423, 4424, and 4425, respectively. (2) Conforming cross-reference amendments to section 4422.— Section 4422 of such title, as so transferred and redesignated, is amended by striking “section 2447c” in subsection (c)(3) and inserting “section 4423”. (3) Conforming cross-reference amendments to section 4423.— Section 4423 of such title, as so transferred and redesignated, is amended— (A) in subsection (b), by striking “section 2447b” and inserting “section 4422”; and (B) in subsection (e), by striking “section 2371b” and inserting “section 4003”. (4) Conforming cross-reference amendments to section 4424.— Section 4424 of such title, as so transferred and redesignated, is amended by striking “section 2304” in subsection (a) and inserting “sections 3201 through 3205”. (5) Conforming cross-reference amendments to section 4425.— Section 4425 of such title, as so transferred and redesignated, is amended by striking “section 2446a” and inserting “section 4401”. (d) Conforming Amendments.— * * Note: Citations in Sec. 1851(d)(1) for Chapter 144B of title 10, United States Code: 10 USC 2446a prec., 2446a–2446c, 2447a prec., 2447a–2447e, 2448a prec., 2448a, 2448b. (1) Repeal of chapter 144b.— Chapter 144B of title 10, United States Code, is repealed. (2) Clerical amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 2201. are amended by striking the item relating to chapter 144B. Subtitle G— Other Special Categories of Contracting SEC. 1856. ACQUISITION OF SERVICES GENERALLY. (a) Tables of Chapters Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232)), of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the items relating to chapters 341 and 343 and inserting the following: “341. Acquisition of Services Generally “343. Acquisition of Services of Contractors Performing Private Security Functions (b) New Chapter 341.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 4501, prec. 4541. is amended by striking chapters 341 and 343 and inserting the following: “CHAPTER 341— ACQUISITION OF SERVICES GENERALLY “Sec. “4501. Procurement of contract services: management structure. “4502. Procurement of contract services: senior officials responsible for management of acquisition of contract services. “4503. [Reserved]. “4504. [Reserved]. “4505. Procurement of services: tracking of purchases. “4506. Procurement of services: data analysis and requirements validation. “4507. Procurement of services: contracts for professional and technical services. “4508. Contractor performance of acquisition functions closely associated with inherently governmental functions. “4509. Contracts for advisory and assistance services: cost comparison studies.”. (c) Transfer of Section 2330 of Title 10.— Section 2330 of title 10, United States Code, is transferred to chapter 341 of such title, as amended by subsection (b), inserted after the table of sections, and redesignated as section 4501. (d) Designation of New Section 4502.— Such chapter is further amended by inserting after paragraph (1) of subsection (a) of section 4501, as transferred and redesignated by subsection (c), the following: “§ 4502. Procurement of contract services: senior officials responsible for management of acquisition of contract services “(a) Senior Officials.— The management structure implemented pursuant to section 4501 of this title shall provide for the following:” . (e) Revision to Remaining Text of Section 4501.— Such section 4501 is amended— (1) by striking “for the following:” and inserting “for the matters specified in subsections (b), (c), (d), and (e).”; (2) by redesignating paragraph (1) as subsection (b) and subparagraphs (B), (C), and (D) as subsections (c), (d), and (e), respectively; (3) in subsection (b), as so redesignated— (A) by realigning the margin of the subsection 2 ems to the left; (B) by striking “The Under” and all that follows through “develop and maintain” and inserting “Policies, Procedures, and Best Practices Guidelines.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary of Defense for Acquisition and Sustainment shall develop and maintain”; (C) by redesignating clauses (i) through (vi) as paragraphs (1) through (6), respectively, and realigning the margin of those paragraphs 2 ems to the left; and (D) by striking the semicolon at the end of such paragraph (6), as so redesignated, and inserting a period; (4) in subsection (c), as redesignated by paragraph (2)— (A) by realigning the margin of the subsection 4 ems to the left; (B) by striking “work with” and inserting “Personnel and Support.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary shall work with”; (C) by redesignating clauses (i) through (iii) as paragraphs (1) through (3), respectively; (D) by inserting “and section 4502 of this title” in paragraph (3), as so redesignated, after “under this section”; and (E) by striking the semicolon at the end and inserting a period; (5) in subsection (d), as redesignated by paragraph (2)— (A) by realigning the margin of the subsection 4 ems to the left; (B) by striking “establish contract” and inserting “Contract Services Acquisition Categories.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary shall establish contract”; and (C) by striking “; and” at the end and inserting a period; (6) in subsection (e), as redesignated by paragraph (2)— (A) by realigning the margin of the subsection 4 ems to the left; (B) by striking “oversee the” and inserting “Oversight of Implementation.—The management structure implemented pursuant to subsection (a) shall provide that the Under Secretary shall oversee the”; (C) by inserting “and section 4502 of this title” after “of this section”; and (D) by striking “subparagraph (A)”and inserting “subsection (b)”; and (7) by adding at the end the following new subsection: “(f) Contract Services.— In this section, the term ‘contract services’ has the meaning given that term in section 4502(d)(2) of this title.” . (f) Revision to Section 4502.— Section 4502 of such title, as designated by subsection (d), is amended— (1) by redesignating paragraphs (2) and (3) of subsection (a) as paragraphs (1) and (2), respectively; (2) in subsection (b)— (A) in paragraph (1), by striking “subsection (a)(1)(C)” and inserting “section 4501(d) of this title”; and (B) in paragraph (2), by striking “subsection (a)(1)” and inserting “section 4501 of this title”; (3) by redesignating subsection (c) as subsection (d); (4) by redesignating paragraph (3) of subsection (b) as subsection (c) and redesignating subparagraphs (A) through (F) thereof as paragraphs (1) through (6), respectively; and (5) in subsection (c), as so redesignated— (A) in the matter preceding paragraph (1), by striking “In carrying out paragraph (1)” and inserting “Duties and Responsibilities.—In carrying out subsection (b)(1),”; (B) in paragraph (1), as so redesignated— (i) by inserting “and section 4501 of this title” after “of this section”; and (ii) by striking “subsection (a)(1)(A)” and inserting “section 4501(b) of this title”; and (C) in paragraph (6), as so redesignated, by striking “section 2330a” and inserting “section 4505”. (g) Transfer of Sections 2330a, 2329, 2331, 2383, and 2410l of Title 10.— Sections 2330a, 2329, 2331, 2383, and 2410l of title 10, United States Code, are transferred to chapter 341 of such title, inserted (in that order) after section 4502, as designated by subsection (c), and redesignated as sections 4505, 4506, 4507, 4508, and 4509, respectively. (h) Conforming Cross-reference Amendment.— Subsection (h)(3) of section 4505 of title 10, United States Code, as transferred and redesignated by subsection (d), is amended by striking “section 2383(b)(2)” and inserting “section 4508(b)(2)”. (i) Conforming Amendment for Defined Term Applicable to Section.— Subsection (b)(1) of section 4508 of title 10, United States Code, as transferred and redesignated by subsection (g), is amended by striking “has the meaning given in section 2302(1) of this title, except that such term”. (j) Placeholder for Chapter for Provisions Relating to Acquisition of Services of Contractors Performing Private Security Functions.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by inserting after chapter 341, as added by this section, the following new chapter: “CHAPTER 343— ACQUISITION OF SERVICES OF CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS “Subchapter “I. Contractors Performing Private Security Functions in Areas of Combat Operations or Other Significant Military Operations “II. Standards and Certification for Private Security “SUBCHAPTER I— CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS IN AREAS OF COMBAT OPERATIONS OR OTHER SIGNIFICANT MILITARY OPERATIONS “Sec. “4541. [Reserved]. “SUBCHAPTER II— STANDARDS AND CERTIFICATION FOR PRIVATE SECURITY CONTRACTORS “Sec. “4551. [Reserved].”. SEC. 1857. ACQUISITION OF INFORMATION TECHNOLOGY. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC 4571. is amended by striking chapter 345 and inserting the following: “CHAPTER 345— ACQUISITION OF INFORMATION TECHNOLOGY “Sec. “4571. Information technology acquisition: planning and oversight processes. “4572. [Reserved]. “4573. [Reserved]. “4574. [Reserved]. “4575. [Reserved]. “4576. Requirement for consideration of certain matters during acquisition of noncommercial computer software.”. (b) Transfer of Section 2223a.— (1) Section 2223a of title 10, United States Code, is transferred to chapter 345 of such title, as amended by subsection (a), inserted after the table of sections, and redesignated as section 4571. (2) The heading of such section is amended to read as follows: “§ 4571. Information technology acquisition: planning and oversight processes” . (c) Transfer of Section 2322a.— Section 2322a of title 10, United States Code, is transferred to chapter 345 of such title, as amended by subsection (a), inserted after section 4571, as added by subsection (b), and redesignated as section 4576. Subtitle H— Contract Management SEC. 1861. CONTRACT ADMINISTRATION. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 4601. is amended by striking chapter 361 and inserting the following: “CHAPTER 361— CONTRACT ADMINISTRATION “Sec. “4601. Electronic submission and processing of claims for contract payments. “4602. Contracted property and services: prompt payment of vouchers. “4603. Advance notification of contract performance outside the United States.”. (b) Transfer of Title 10 Sections.— Sections 2227, 2226, and 2410g of title 10, United States Code, are transferred to chapter 361 of such title, as amended by subsection (a), inserted (in that order) after the table of sections at the beginning of such chapter, and redesignated as section 4601, 4602, and 4603, respectively. SEC. 1862. PROHIBITIONS AND PENALTIES. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 4651. is amended by striking chapter 363 and inserting the following: “CHAPTER 363— PROHIBITION AND PENALTIES “Sec. “4651. Expenditure of appropriations: limitation. “4652. Prohibition on use of funds for documenting economic or employment impact of certain acquisition programs. “4653. Prohibition on use of funds to relieve economic dislocations. “4654. Prohibition on doing business with certain offerors or contractors. “4655. Prohibition of contractors limiting subcontractor sales directly to the United States. “4656. Prohibition on persons convicted of defense-contract related felonies and related criminal penalty on defense contractors. “4657. Prohibition on criminal history inquiries by contractors prior to conditional offer. “4658. Debarment of persons convicted of fraudulent use of ‘Made in America’ labels. “4659. Prohibition on contracting with entities that comply with the secondary Arab boycott of Israel. “4660. Prohibition on collection of political information.”. (b) Transfer and Redesignation of Title 10 Sections.— The sections of title 10, United States Code, specified in the left-hand column of the following table are transferred to chapter 363 of such title, as amended by subsection (a), inserted (in the order shown in the following table) after the table of sections at the beginning of such chapter, and redesignated in accordance with the section numbers in the right-hand column, as follows: SectionRedesignated Section 22074651 22494652 23924653 23934654 24024655 24084656 23394657 2410f4658 2410i4659 23354660 (c) Conforming Cross-reference Amendments.— (1) Section 2343 of title 10, United States Code, is amended by striking “Sections 2207,” and inserting “Sections 4651,”. (2) Subsection (b) of section 4657 of title 10, United States Code, as transferred and redesignated by subsection (b), is amended by striking “section 2393(c)” and inserting “section 4654(c)”. (3) Section 1123 of the National Defense Authorization Act for Fiscal Year 2020 10 USC 2339 note. (Public Law 116–92; 133 Stat.1614) is amended— (A) in subsection (b)(2), by striking “Section 2339(a)” and inserting “Section 4657(a)”; and (B) in subsection (c)(1), by striking “section 2339” and inserting “section 4657”. SEC. 1863. CONTRACTOR WORKFORCE. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 4701. is amended by striking chapter 365 and inserting the following: “CHAPTER 365— CONTRACTOR WORKFORCE “Sec. “4701. Contractor employees: protection from reprisal for disclosure of certain information. “4702. Incentives and consideration for qualified training programs. “4703. Displaced contractor employees: assistance to obtain certification and employment as teachers or employment as teachers’ aides. “4704. Defense contractors: listing of suitable employment openings with local employment service office.”. (b) Transfer of Title 10 Sections.— Sections 2409, 2409a, 2410j, and 2410k of title 10, United States Code, are transferred to chapter 365 of such title, as amended by subsection (a), inserted (in that order) after the table of sections, and redesignated as sections 4701, 4702, 4703, and 4704, respectively. (c) Conforming Amendments to New 4701.— Subsection (g) of section 4701 of title 10, United States Code, as transferred and redesignated by subsection (b), is amended— (1) by striking “section 2303” in paragraph (1) and inserting “section 3063”; and (2) by striking paragraph (2). SEC. 1864. OTHER ADMINISTRATIVE MATTERS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 4751. is amended by striking chapter 367 and inserting the following: “CHAPTER 367— OTHER ADMINISTRATIVE MATTERS “Sec. “4751. Determinations and decisions. “4752. Remission of liquidated damages. “4753. Supplies: identification of supplier and sources. “4754. Management of purchase cards.”. (b) Transfer of Title 10 Sections.— Sections 2310, 2312, 2384, and 2784 of title 10, United States Code, are transferred to chapter 367 of such title, as amended by subsection (a), inserted (in that order) after the table of sections, and redesignated as sections 4751, 4752, 4753, and 4754, respectively. (c) Conforming Amendments to New Section 4751.— Section 4751 of title 10, United States Code, as transferred and redesignated by subsection (b), is amended— (1) in subsection (a), by striking “made under this chapter” and inserting “made under any chapter 137 legacy provision”; and (2) in subsection (b), by striking “section 2306(g)(1), 2307(d), or 2313(c)(2)(B)” and inserting “section 3531(a), 3803, or 3841(c)(2)(B)”. Subtitle I— Defense Industrial Base SEC. 1866. DEFENSE INDUSTRIAL BASE GENERALLY. (a) Tables of Chapters Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A (as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232)), of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended by striking the item relating to chapter 381 and inserting the following: “381. Defense Industrial Base Generally “382. Policies and Planning “383. Development, Application, & Support of Dual-Use Technologies “384. Manufacturing Technology “385. Other Technology Base Policies and Programs (b) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), 10 USC prec. 4751. is amended by striking chapter 381 and inserting the following: “CHAPTER 381— DEFENSE INDUSTRIAL BASE GENERALLY “Sec. “4801. Definitions.”. (c) Transfer of Definitions Section.— Section 2500 of such title is transferred to chapter 381 of such title, as amended by subsection (b), inserted after the table of sections at the beginning, redesignated as section 4801, and amended— (1) in the matter preceding paragraph (1), by striking “In this chapter” and inserting “In this subpart”; (2) in paragraph (8), by striking “section 2505” and “section 2501(a)” and inserting “section 4816” and “section 4811(a)”, respectively; and (3) by adding at the end the following new paragraph: “(16) The term ‘chapter 148 legacy provision’ means any of the following provisions of this subpart: sections 4801, 4811–4819, 4831–4834, 4841–4843, 4851, 4852, 4861–4864, 4871, 4872, 4881–4884, 4891, and 4892, and chapter 389.” . (d) Conforming Cross-reference Amendments.— (1) Section 843(c) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2302 note) is amended— (A) in paragraph (4), by striking “section 2302(9)” and inserting “section 3021”; and (B) in paragraph (5), by striking “section 2500(5)” and inserting “section 4801(5)”. (2) Section 2474(a)(2) of title 10, United States Code, is amended by striking “section 2500(1)” and inserting “section 4801(1)”. (3) Section 881 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 10 U.S.C. 2501 note) is amended— (A) in subsection (a)— (i) in the matter preceding paragraph (1), by striking “section 2500” and inserting “section 4801”; and (ii) in paragraph (4), by striking “section 2501(b)” and inserting “section 4811(b)”; and (B) in subsection (c), by striking “section 2504” and inserting “section 4814”. (4) The National Defense Authorization Act for Fiscal Year 2004 (Public Law 108–136; 10 U.S.C. 2501 note) is amended— (A) in section 812— (i) in subsection (a)(1)(B), by striking “section 2501” and inserting “section 4811”; and (ii) in subsection (b)(3), by striking “section 2507” and inserting “section 4817”; and (B) in section 814(c), by striking “section 2534” and inserting “section 4864”. (5) Section 1712(c)(2) of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91; 10 U.S.C. 2536 note) is amended by striking “section 2500” and inserting “section 4801”. SEC. 1867. POLICIES AND PLANNING. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by adding after chapter 381, as amended by the preceding section, the following new chapter: “CHAPTER 382— POLICIES AND PLANNING “Sec. “4811. National security strategy for national technology and industrial base. “4812. National Defense Technology and Industrial Base Council. “4813. National defense program for analysis of the technology and industrial base. “4814. Annual report to Congress. “4815. Unfunded priorities of the national technology and industrial base: annual report. “4816. National technology and industrial base: periodic defense capability assessments. “4817. Industrial Base Fund. “4818. Data collection authority of President. “4819. Modernization of acquisition processes to ensure integrity of industrial base.”. (b) Transfer and Redesignation of Title 10 Sections.— The sections of title 10, United States Code, specified in the left-hand column of the following table are transferred to chapter 382 of such title, as added by subsection (a), inserted (in the order shown in the following table) after the table of sections at the beginning of such chapter, and redesignated in accordance with the section numbers in the right-hand column, as follows: SectionRedesignated Section 25014811 25024812 25034813 25044814 2504a4815 25054816 25084817 25074818 25094819 (c) Section 2506.— (1) Insertion of text of section 2506 at end of section 4811.— (A) Section 4811 of such title, as transferred and redesignated by subsection (b), is amended by adding at the end the following new subsection: “(c) Department of Defense Technology and Industrial Base Policy Guidance.— ” . (B) Subsections (a) and (b) of section 2506 of such title are transferred to the end of subsection (c) of such section 4811, as added by subparagraph (A), redesignated as paragraphs (1) and (2), respectively, indented 2 ems from the left margin, and amended— (i) in paragraph (1), as so redesignated, by striking “section 2501(a) of this title” and inserting “subsection (a)”; and (ii) in paragraph (2), as so redesignated, by striking “subsection (a)” and inserting “paragraph (1)”. (2) Conforming repeal.— Section 2506 of such title is repealed. (d) Conforming Cross-reference Amendments.— Sections of chapter 382 of such title, as transferred and redesignated by subsection (b), are amended as follows: (1) Section 4812 is amended by striking “section 2501(a)” in subsection (c)(1) and inserting “section 4811(a)”. (2) Section 4813 is amended by striking “section 2505” in subsection (c)(3)(A) and inserting “section 4816”. (3) Section 4814 is amended— (A) in paragraph (1), by striking “section 2506” and inserting “section 4811(c)”; (B) in paragraph (2), by striking “section 2505” and inserting “section 4816”; and (C) in paragraph (3), by striking “section 2501” and “section 2505” and inserting “section 4811” and “section 4816”, respectively. (4) Section 4816 is amended by striking “section 2501(a)” in subsection (a) and inserting “section 4811(a)”. (5) Section 4818 is amended in subsection (a)— (A) by striking “of this chapter” and inserting “of the chapter 148 legacy provisions”; and (B) by striking “under this chapter” and inserting “under those provisions”. (6) Section 4819(f)(1)(A) is amended by striking “section 2339a(e)” and inserting “section 3252(c)”. (e) Conforming Cross-reference Amendments.— (1) Section 2198(c) of title 10, United States Code, is amended by striking “section 2505” and “section 2501(a)” and inserting “section 4816” and “section 4811(a)”, respectively. (2) Section 2709(a) of such title is amended by striking “section 2501” and inserting “section 4811”. (3) Section 8685 of such title is amended by striking “section 2501(b)” in subsections (a) and (c) and inserting “section 4811(b)”. SEC. 1868. DEVELOPMENT, APPLICATION, AND SUPPORT OF DUAL-USE TECHNOLOGIES. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by adding after chapter 382, as added by the preceding section, the following new chapter: “CHAPTER 383— DEVELOPMENT, APPLICATION, AND SUPPORT OF DUAL-USE TECHNOLOGIES “Sec. “4831. Defense dual-use critical technology program. “4832. Encouragement of technology transfer. “4833. Federal Defense Laboratory Diversification Program. “4834. Overseas foreign critical technology monitoring and assessment financial assistance program.”. (b) Transfer and Redesignation of Title 10 Sections.— The sections of title 10, United States Code, specified in the left-hand column of the following table are transferred to chapter 383 of such title, as added by subsection (a), inserted (in the order shown in the following table) after the table of sections at the beginning of such chapter, and redesignated in accordance with the section numbers in the right-hand column, as follows: SectionRedesignated Section 25114831 25144832 25194833 25184834 (c) Conforming Cross-reference Amendments.— Sections of chapter 383 of such title, as transferred and redesignated by subsection (b), are amended as follows: (1) Section 4831 is amended— (A) in subsection (a), by striking “section 2501(a)” and “section 2371” and inserting “section 4811(a)” and “section 4002”, respectively; and (B) in subsection (e)(1), by striking “section 2501(a)” and inserting “section 4811(a)”. (2) Section 4832 is amended in subsection (a) by striking “section 2501(a)” and inserting “section 4811(a)”. (3) Section 4833 is amended— (A) in subsection (a), by striking “section 2501(a)” and inserting “section 4811(a)”; (B) in subsection (c)(1), by striking “section 2371” and inserting “section 4002”; (C) in subsection (d)(2), by striking “section 2511(c)(2)” and inserting “section 4831(c)(2)”; and (D) in subsection (f), by striking “section 2511(e)” and inserting “section 4831(e)”. SEC. 1869. MANUFACTURING TECHNOLOGY. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by adding after chapter 383, as added by the preceding section, the following new chapter: “CHAPTER 384— MANUFACTURING TECHNOLOGY “Sec. “4841. Manufacturing Technology Program. “4842. Joint Defense Manufacturing Technology Panel. “4843. Armament retooling and manufacturing.”. (b) Transfer and Redesignation of Section 2521.— (1) Transfer and redesignation.— Section 2521 of title 10, United States Code, is transferred to chapter 384 of such title, as added by subsection (a), inserted after the table of sections at the beginning of such chapter, and redesignated as section 4841. (2) Conforming cross-reference amendments.— Such section is amended— (A) in subsection (a), by striking “section 2501(a)” and inserting “section 4811(a)”; and (B) in subsection (d)(1), by striking “section 2374” and inserting “section 4008”. (c) Designation of Former Section 2521(e) as Section 4842.— (1) Such chapter is further amended— (A) by transferring subsection (f) of section 4841 within that section so as to appear after subsection (d) and redesignating that subsection as subsection (e); and (B) by redesignating as section 4842 the subsection (e) following the subsection transferred and redesignated by subparagraph (A) and inserting at the beginning of such section 4842 the following section heading: “§ 4842. Joint Defense Manufacturing Technology Panel” . (2) Section 4842 of title 10, United States Code, as designated by paragraph (1)(B), is amended— (A) by striking “(e) Joint Defense Manufacturing Technology Panel.—”; (B) by redesignating paragraphs (1) through (6) as subsections (a) through (f), respectively; (C) in subsection (b), as so redesignated, by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; (D) in subsection (c), as so redesignated, by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3) respectively; (E) in subsection (d), as so redesignated— (i) by striking “paragraph (3)” and inserting “subsection (c)”; and (ii) by redesignating subparagraphs (A), (B), (C), and (D) as paragraphs (1), (2), (3), and (4), respectively; and (F) in subsection (e), as so redesignated, by striking “this paragraph” and inserting “this subsection”. (d) Transfer and Redesignation of Section 2522.— Section 2522 of title 10, United States Code, is transferred to chapter 384 of such title, as added by subsection (a), inserted after section 4842, as designated by subsection (c)(1)(B), and redesignated as section 4843. (e) Conforming Cross-reference Amendment.— Section 1644(f)(1) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 10 U.S.C. 2224 note) is amended by striking “section 2521” and inserting “section 4841”. SEC. 1870. OTHER TECHNOLOGY BASE POLICIES AND PROGRAMS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended by adding after chapter 384, as added by the preceding section, the following new chapter: “CHAPTER 385— OTHER TECHNOLOGY BASE POLICIES AND PROGRAMS “Subchapter “I. Defense Trade Reciprocity and Offset Policy “II. Limitations on Procurement of Certain Items from Foreign Sources “III. Limitations on Procurement from Certain Foreign Sources “IV. Defense Industrial Reserve and Industrial Mobilization “V. Other Matters “SUBCHAPTER I— DEFENSE TRADE RECIPROCITY AND OFFSET POLICY “Sec. “4851. Defense memoranda of understanding and related agreements. “4852. Offset policy; notification.”. (b) Transfer and Redesignation of Sections 2531 and 2532.— Sections 2531 and 2532 of title 10, United States Code, are transferred to chapter 385 of such title, as added by subsection (a), inserted after the table of sections at the beginning of subchapter I, and redesignated as sections 4851 and 4852, respectively. (c) Subchapter Ii.— (1) Designation of subchapter ii.— Chapter 385 of title 10, United States Code, is further amended by adding after subchapter I, as amended by subsection (b), the following: “SUBCHAPTER II— LIMITATIONS ON PROCUREMENT OF CERTAIN ITEMS FROM FOREIGN SOURCES “Sec. “4861. Determinations of public interest under chapter 83 of title 41. “4862. Requirement to buy certain articles from American sources; exceptions. “4863. Requirement to buy strategic materials critical to national security from American sources; exceptions. “4864. Miscellaneous limitations on the procurement of goods other than United States goods.”. (2) Transfer and redesignation of sections 2533, 2533a, 2533b, and 2534.— Sections 2533, 2533a, 2533b, and 2534 of title 10, United States Code, are transferred to chapter 385 of such title, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of subchapter II, and redesignated as sections 4861, 4862, 4863, and 4864, respectively. (3) Conforming cross-reference amendments.— Section 4864 of such title, as so transferred and redesignated, is amended— (A) in subsection (d)(3), by striking by striking “section 2531” and inserting “section 4851”; (B) in subsection (e)(3), by striking “section 2532(d)(1)” and inserting “section 4852(d)(1)”; and (C) in paragraph (2)(B) of the first subsection (k) (relating to “Limitation on certain procurements application process”), by striking “section 2500(1)” both places it appears and inserting “section 4801(1)”. (4) Additional technical amendments.— Section 4864 of such title, as so transferred and redesignated, is further amended by redesignating the second subsection (k) (added by section 853(b) of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92)) as subsection (l). (5) Conforming amendment.— Section 854(a)(2) of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92; 10 U.S.C. 2533b note) is amended by striking “section 2533a(b)” and inserting “section 4862(b)”. (6) Cross-reference amendments.— (A) Section 2375(e)(2) of title 10, United States Code, is amended by striking “section 2533a” and “section 2533b” and inserting “section 4862” and “section 4863”, respectively. (B) Section 8118 of Public Law 108–287 (10 U.S.C. 2533a note) is amended by striking “section 2533a(f)” and inserting “section 4862(f)”. (C) Section 187(b)(5) of title 10, United States Code, is amended by striking “section 2533b” and inserting “section 4863”. (d) Subchapter Iii.— (1) Designation of subchapter iii.— Chapter 385 of title 10, United States Code, is further amended by adding after subchapter II, as added by subsection (c)(1), the following: “SUBCHAPTER III— LIMITATIONS ON PROCUREMENT FROM CERTAIN FOREIGN SOURCES “Sec. “4871. Acquisition of sensitive materials from non-allied foreign nations: prohibition. “4872. Award of certain contracts to entities controlled by a foreign government: prohibition.”. (2) Transfer and redesignation of sections 2533c and 2536.— Sections 2533c and 2536 of title 10, United States Code, are transferred to chapter 385 of such title, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of subchapter III, and redesignated as sections 4871 and 4872, respectively. (3) Cross-reference and clerical amendments.— (A) Section 4871 of such title, as so transferred and redesignated, is amended by striking “section 2533b(m)” in subsection (d)(3) and inserting “section 4863(m)”. (B) The heading of such section is amended to read as follows: “§ 4871. Acquisition of sensitive materials from non-allied foreign nations: prohibition” . (4) Conforming cross-reference amendment.— Section 2572(e)(2)(A) of title 10, United States Code, is amended by striking “section 2536(c)(1)” and inserting “section 4872(c)(1)”. (e) Subchapter Iv.— (1) Designation of subchapter iv.— Chapter 385 of title 10, United States Code, is further amended by adding after subchapter III, as added by subsection (d), the following: “SUBCHAPTER IV— DEFENSE INDUSTRIAL RESERVE AND INDUSTRIAL MOBILIZATION “Sec. “4881. Defense Industrial Reserve. “4882. Industrial mobilization: orders; priorities; possession of manufacturing plants; violations. “4883. Industrial mobilization: plants; lists. “4884. Industrial mobilization: Board on Mobilization of Industries Essential for Military Preparedness.”. (2) Transfer and redesignation of sections 2535, 2538, 2539, and 2539a.— (A) In general.— Sections 2535, 2538, 2539, and 2539a of title 10, United States Code, are transferred to chapter 385 of such title, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of subchapter IV, and redesignated as sections 4881, 4882, 4883, and 4884, respectively. (B) Cross-reference amendment.— Section 4884 of such title, as so transferred and redesignated, is amended by striking “sections 2538 and 2539” and inserting “sections 4882 and 4883”. (f) Subchapter V.— (1) Designation of subchapter v.— Chapter 385 of title 10, United States Code, is further amended by adding after subchapter IV, as added by subsection (e), the following: “SUBCHAPTER V— OTHER MATTERS “Sec. “4891. Improved national defense control of technology diversions overseas. “4892. Availability of samples, drawings, information, equipment, materials, and certain services.”. (2) Transfer and redesignation of sections 2537 and 2539b.— Sections 2537 and 2539b of title 10, United States Code, are transferred to chapter 385 of such title, as added by subsection (a), inserted (in that order) after the table of sections at the beginning of subchapter V, and redesignated as sections 4891 and 4892, respectively. SEC. 1871. SMALL BUSINESS PROGRAMS. (a) In General.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended— (1) by striking chapter 285; and (2) by adding at the end the following new chapter: “CHAPTER 387— SMALL BUSINESS PROGRAMS “Subchapter “I. General “SUBCHAPTER I— GENERAL “Sec. “4901. Department of Defense small business strategy.”. (b) Transfer of Section 2283.— Section 2283 of title 10, United States Code, is transferred to chapter 387 of such title, as added by paragraph (1), inserted after the table of sections at the end of subchapter I, redesignated as section 4901, and amended in subsections (b)(3) and (e) by striking “chapter 142” and inserting “chapter 388”. SEC. 1872. PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT PROGRAM. (a) New Chapter.— (1) In general.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended— (A) by striking chapter 385 (as enacted by that Act); and (B) by adding after chapter 387, as added by the preceding section, the following new chapter: “CHAPTER 388— PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT PROGRAM “Sec. “4951. Purposes; definitions; regulations. “4952. Cooperative agreements. “4953. Funding. “4954. Distribution. “4955. Subcontractor information. “4956. Authority to provide certain types of technical assistance. “4957. Advancing small business growth. “4958. [Reserved]. “4959. Administrative and other costs. “§ 4951. Purposes; definitions; regulations” . (2) Transfer of section 2412.— The text of section 2412 of title 10, United States Code, is transferred to section 4951 of such title, as added by paragraph (1), inserted after the section heading, designated as subsection (a), and amended by inserting “Purposes.—” before “The purposes of the program”. (3) Transfer of section 2411.— (A) Transfer.— The text of section 2411 of title 10, United States Code, is transferred to section 4951 of such title, as added by paragraph (1), inserted after subsection (a), as added by paragraph (2), designated as subsection (b), and amended by inserting “Definitions.—” before “In this chapter”. (B) Preservation of future amendment.— Section 852(a) of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1511; 10 U.S.C. 2411 note) is amended by striking “section 2411(3)” and inserting “section 4951(b)(3)”, except that if the effective date of this section is after October 1, 2021, such amendment shall not be made. (4) Transfer of section 2420.— The text of section 2420 of title 10, United States Code, is transferred to section 4951 of such title, as added by paragraph (1), inserted after subsection (b), as added by paragraph (3), designated as subsection (c), and amended by inserting “Regulations.—” before “The Secretary of Defense”. (5) Transfer of section 2413.— Section 2413 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1), inserted after section 4951, redesignated as section 4952, and amended— (A) in subsection (a), by inserting “Authority.—” after “(a)”; (B) in subsection (b)— (i) by inserting “Agreements.—” before “Under any such” ; and (ii) by striking “section 2419(b)” in paragraph (2) and inserting “section 4957(b)”; (C) in subsection (c), by inserting “Distribution of Programs.—” after “(c)”; (D) in subsection (d), by inserting “Weight to Be Given Successful Past Performance.—” after “(d)”; and (E) in subsection (e), by inserting “Determination of Level of Funding.—” after “(e)”. (6) Transfer of section 2414.— Section 2414 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1), inserted after section 4952, as transferred and redesignated by paragraph (5), redesignated as section 4953, and amended— (A) by striking “clause” in paragraphs (1) and (2) of subsection (a) and inserting “paragraph”; (B) by striking “section 2411(1)(D)” in subsections (a)(3), (a)(4), and (b) and inserting “section 4951(b)(1)(D)”; and (C) in subsection (c), by striking “section 2419(b)” and inserting “section 4957(b)”. (7) Transfer of section 2415.— Section 2415 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1), inserted after section 4953, as transferred and redesignated by paragraph (6), and redesignated as section 4954. (8) Transfer of section 2416.— Section 2416 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1), inserted after section 4954, as transferred and redesignated by paragraph (7), redesignated as section 4955, and amended— (A) in subsection (a), by inserting “Contractors to Provide Information.—” after “(a)”; (B) in subsection (b), by inserting “Information to Be Provided.—” after “(b)”; (C) in subsection (c), by inserting “Frequency.—” after “(c)”; and (D) in subsection (d), by inserting “Definition.—” after “(d)”. (9) Transfer of section 2418.— Section 2418 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1), inserted after section 4955, as transferred and redesignated by paragraph (8), redesignated as section 4956, and amended— (A) in subsection (a), by inserting “Assistance Relating to Certain Non-defense Contracts.—” after “(a)”; (B) in subsection (b), by inserting “Information Relating to Assistance and Other Programs Available.—” after “(b)”; and (C) in subsection (c), by inserting “Education on Requirements Applicable to Small Businesses Under Certain Regulations.—” after “(c)”. (10) Transfer of section 2419.— Section 2419 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1), inserted after section 4956, as transferred and redesignated by paragraph (7), and redesignated as section 4957. (11) Transfer of section 2417.— Section 2417 of title 10, United States Code, is transferred to chapter 385 of such title, as amended by paragraph (1),inserted after section 4957, as added by paragraph (10), and redesignated as section 4959. (b) Conforming Repeal of Chapter 142.— (1) Repeal.— Chapter 142 of title 10, United States Code, is repealed. (2) Clerical amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 2201. are amended by striking the items relating to chapter 142. SEC. 1873. LOAN GUARANTEE PROGRAMS. (a) New Chapter.— Part V of subtitle A of title 10, United States Code, as added by section 801 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232), is amended— (1) by striking chapter 383 (as enacted by that Act); and (2) by adding after chapter 388, as added by the preceding section, the following new chapter: “CHAPTER 389— LOAN GUARANTEE PROGRAMS “Subchapter “I. Defense Export Loan Guarantees “II. Critical Infrastructure Protection Loan Guarantees (b) Transfer of Existing Provisions.— Subchapters VI and VII of chapter 148 of title 10, United States Code, 10 USC prec. 4971, 2540–2540d, prec. 4981, 2541–2541d. are transferred to chapter 389 of such title, as added by subsection (a), inserted after the table of subchapters at the beginning of the chapter, and redesignated as subchapters I and II, respectively. (c) Redesignation of Sections.— (1) Subchapter i.— Sections 2540, 2540a, 2540b, 2540c and 2540d of such title are redesignated as sections 4971, 4972, 4973, 4974, and 4975, respectively, and the items relating to those sections in the table of sections at the beginning of subchapter I of chapter 389, as transferred and redesignated by subsection (b), are amended to conform to the redesignations in this paragraph. (2) Subchapter ii.— Sections 2541, 2541a, 2541b, 2541c and 2541d of such title are redesignated as sections 4981, 4982, 4983, 4984, and 4985, respectively, and the items relating to those sections in the table of sections at the beginning of subchapter II of chapter 389, as transferred and redesignated by subsection (b), are amended to conform to the redesignations in this paragraph. (d) Conforming Cross-reference Amendments in 2540 Note Section.— Section 8065 of the Department of Defense Appropriations Act, 2005 (Public Law 108–287; 10 U.S.C. 2540 note), is amended— (1) by striking “subchapter VI of chapter 148” both places it appears and inserting “subchapter I of chapter 389”; and (2) by striking “section 2540c(d)” and inserting “section 4974(d)”. (e) Cross-reference Amendments in Subchapter Ii.— Subchapter II of chapter 389 of such title, as transferred and redesignated by subsection (b), is amended— (1) in subsection (b)(5) of section 4981, as redesignated by subsection (c)(2), by striking “section 2541d” and inserting “section 4985”; (2) in subsection (b) of section 4983, as redesignated by subsection (c)(2), by striking “section 2541a(c)” and inserting “section 4982(c)”; and (3) in section 4984, as redesignated by subsection (c)(2)— (A) in the matter preceding paragraph (1), by striking “subchapter VI” and inserting “subchapter I”; (B) in paragraph (1), by striking “Section 2540a” and inserting “Section 4972”; (C) in paragraph (2), by striking “section 2540b” and inserting “section 4973”; and (D) in paragraph (3), by striking “Section 2540d(2)” and inserting “Section 4975(2)”. (f) Clerical Amendments.— The tables of chapters at the beginning of subtitle A, and at the beginning of part V of subtitle A, of title 10, United States Code, 10 USC prec. 101, prec. 3001. are amended— (1) by striking the items relating to chapters 285, 383, and 385; and (2) by adding at the end the following new items: “387. Small Business Programs “388. Procurement Technical Assistance Cooperative Agreement Program “389. Loan Guarantee Programs Subtitle J— Other Matters SEC. 1876. RECODIFICATION OF CERTAIN TITLE 10 PROVISIONS RELATING TO CONTRACT FINANCING FOR CERTAIN NAVY CONTRACTS. (a) Recodification of Paragraph (1) of 10 u.s.c. 2307(g).— Chapter 863 of title 10, United States Code, is amended by inserting after section 8684 a new section 8684a consisting of— (1) a heading as follows: “§ 8684a. Repair, maintenance, or overhaul of naval vessels: rate for progress payments” ; and (2) a text consisting of the text of paragraph (1) of section 2307(g) of title 10, United States Code, revised by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively. (b) Recodification of Paragraph (3).— Such chapter is further amended by inserting after section 8688 a new section 8688a consisting of— (1) a heading as follows: “§ 8688a. Construction and conversion of naval vessels: liens” ; and (2) a text consisting of the text of paragraph (3) of section 2307(g) of such title. (c) Recodification of Paragraph (2).— Subsection (c) of section 8702 of such title is amended— (1) by striking the first two words of the subsection heading; and (2) by striking the text of that subsection and inserting the text of paragraph (2) of section 2307(g) of such title, amended by striking “this paragraph” in the second sentence and inserting “this subsection”. (d) Clerical Amendments.— The table of sections at the beginning of chapter 863 of such title 10 USC prec. 8661. is amended— (1) by inserting after the item relating to section 8684 the following new item: “8684a. Repair, maintenance, or overhaul of naval vessels: rate for progress payments.”; (2) by inserting after the item relating to section 8688 the following new item: “8688a. Construction and conversion of naval vessels: liens.”. (e) Conforming Repeal.— Section 2307(g) of such title is repealed. SEC. 1877. RECODIFICATION OF TITLE 10 STATUTE ON CADRE OF PERSONNEL WHO ARE INTELLECTUAL PROPERTY EXPERTS. (a) New Section in Acquisition Workforce Chapter.— Chapter 87 of title 10, United States Code, is amended by inserting after section 1706 the following new section: “§ 1707. Cadre of intellectual property experts” . (b) Transfer of 10 u.s.c. 2322(b).— Subsection (b) of section 2322 of title 10, United States Code, is transferred to section 1707 of such title, as added by subsection (a), inserted after the section heading, redesignated as subsection (a), and amended— (1) by striking “Cadre of Intellectual Property Experts.—(1) The Secretary” and inserting “Cadre.—The Secretary”; and (3) by redesignating paragraphs (2), (3), and (4) as subsections (b), (c), and (d), respectively. (c) Amendments to New 1707(b).— Subsection (b) of such section 1707, as so redesignated, is amended— (1) by inserting “Leadership Structure.—” before “The Under”; (2) by striking “Secretary shall establish” and inserting “Secretary— “(1) shall establish” ; and (3) by striking “managed, and shall determine” and inserting “managed; and “(2) shall determine” . (d) Amendments to New 1707(c).— Subsection (c) of such section 17017, as so redesignated, is amended— (1) by inserting “Duties.—” before “The cadre”; and (2) by redesignating subparagraphs (A) through (F) as paragraphs (1) through (6), respectively. (e) Amendments to New 1707(d).— Subsection (d) of such section 1707, as so redesignated, is amended— (1) by striking “(A) In order to” and inserting “ Administration.— “(1) In order to” ; (2) by redesignating subparagraphs (B) through (F) as paragraphs (2) through (6), respectively, and realigning such paragraphs 2 ems from the left margin; (3) in paragraph (1) of such subsection (d), as redesignated by paragraph (1) of this subsection— (A) in the first sentence— (i) by striking “paragraph (1)” and inserting “subsection (a)”; and (ii) by striking “paragraph (2)” and inserting “subsection (b)”; and (B) in the third sentence, by striking “subparagraphs (B), (C), (D), and (F)” and inserting “paragraphs (2), (3), (4), and (6)”; and (4) in paragraph (4), as redesignated by paragraph (2), by striking “section 2320” and inserting “section 3775(a)”. SEC. 1878. TRANSFER OF TITLE 10 SECTION RELATING TO NOTIFICATION OF NAVY PROCUREMENT PRODUCTION DISRUPTIONS. (a) Transfer of Section 2339b.— Section 2339b of title 10, United States Code, as added by section 820 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92), is transferred to chapter 873 of such title, inserted before section 8752, and redesignated as section 8751. (b) Clerical Amendment.— The table of sections at the beginning of chapter 873 of such title 10 USC prec. 8751. is amended by inserting before the item relating to section 8752 the following new item: “8751. Notification of Navy procurement production disruptions.”. SEC. 1879. TRANSFER OF TITLE 10 SECTION RELATING TO ENERGY SECURITY. (a) Transfer.— Section 2410q of title 10, United States Code, is transferred to subchapter II of chapter 173 of such title, inserted after section 2922h, and redesignated as section 2922i. (b) Clerical Amendment.— The table of sections at the beginning of such subchapter 10 USC prec. 2922. is amended by adding at the end the following new item: “2922i. Multiyear contracts: purchase of electricity from renewable energy sources.”. SEC. 1880. PART IV HEADING. (a) Heading.— The heading of part IV of subtitle A of title 10, United States Code, is 10 USC prec. 2201. amended to read as follows: “PART IV— SERVICE, SUPPLY, AND PROPERTY” . (b) Table of Chapters.— The item relating to the heading of part IV in the table of chapters at the beginning of subtitle A of such title is 10 USC prec. 101. amended to read as follows: “Part IV— Service, Supply, and Property”. SEC. 1881. REPEAL OF CHAPTERS 137, 139, 144, AND 148. * * Note: Citations in Sec. 1881(a) for Chapters 137, 139, 144, and 148 of title 10, United States Code: 10 USC prec. 2301, 2302d, 2304–2307, 2313, 2320–2322, 2324, 2326, 2333, 2334, 2339c, prec. 2351, 2358c, 2374b, prec. 2430, 2440, prec. 2500, prec. 2501, prec. 2511, prec. 2521, prec. 2531, 2533d. (a) Repeal.— Chapters 137, 139, 144, and 148 of title 10, United States Code, are repealed. (b) Table of Chapters.— The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title 10 USC prec. 101, prec. 2201. are amended by striking the items relating to chapters 137, 139, 144, and 148. SEC. 1882. REVISION OF CHAPTER 141. (a) Chapter Heading.— (1) The heading of chapter 141 of title 10, United States Code, is amended 10 USC prec. 2381. to read as follows: “PART 141— MISCELLANEOUS PROVISIONS RELATING TO PROPERTY” . (2) The items relating to such chapter in the table of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title 10 USC prec. 101, prec. 2201. are amended to read as follows: “141. Miscellaneous Provisions Relating to Property (b) Consolidation of Remaining Sections of Chapter 141.— Sections 2410r and 2410s of such title are transferred within chapter 141 of such title to appear (in that order) before section 2389 and are redesignated as sections 2387 and 2388, respectively. (c) Table of Sections.— The table of sections at the beginning of such chapter 10 USC prec. 2381. is amended to read as follows: “Sec. “2385. Arms and ammunition: immunity from taxation. “2387. Contract working dogs: requirement to transfer animals to 341st Training Squadron after service life. “2388. Security clearances for facilities of certain companies. “2389. Ensuring safety regarding insensitive munitions. “2390. Prohibition on the sale of certain defense articles from the stocks of the Department of Defense. “2391. Military base reuse studies and community planning assistance. “2396. Advances for payments for compliance with foreign laws, rent in foreign countries, tuition, public utility services, and pay and supplies of armed forces of friendly foreign countries.”. SEC. 1883. REFERENCES. (a) Definitions.— In this section: (1) Redesignated section.— The term “redesignated section” means a section of title 10, United States Code, that is redesignated by this title, as that section is so redesignated. (2) Source section.— The term “source section” means a section of title 10, United States Code, that is redesignated by this title, as that section was in effect before the redesignation. (b) Reference to Source Section.— (1) Treatment of reference.— Except as otherwise provided in this title, a reference to a source section, including a reference in a regulation, order, or other law, is deemed to refer to the corresponding redesignated section. * * Note: Classifications for Sec. 1883(b)(2): 10 USC 113, 118, 129a, 133b, 139a, 171a, 181, 231a, 483, 1091, 1501a, 1701a, 1706, 1724, 1734, 2113, 2343, 2350b, 2463, 2484, 2583, 2688, 3131, 3136, 3137, 3455, 3862, 3905, 4003, 4008, 4009, 4015, 4061, 4062, 4065, 4146, 4147, 4171, 4172, 4252, 4323, 4324, 4505, 4603, 4660, 4816, 4819, 4863, 4864, 4971, 4981, 7462, 7554, 8481, 8633, 8669b, 9082, 9462. (2) Title 10.— Except as otherwise provided in this title, in title 10, United States Code, each reference in the text of such title to a source section is amended by striking such reference and inserting a reference to the appropriate redesignated section. SEC. 1884. SAVINGS PROVISIONS. (a) Regulations, Orders, and Other Administrative Actions.— A regulation, order, or other administrative action in effect under a provision of title 10, United States Code, redesignated by this title continues in effect under the provision as so redesignated. (b) Actions Taken and Offenses Committed.— An action taken or an offense committed under a provision of title 10, United States Code, redesignated by this title is deemed to have been taken or committed under the provision as so redesignated. SEC. 1885. RULE OF CONSTRUCTION. This title, including the amendments made by this title, is intended only to reorganize title 10, United States Code, and may not be construed to alter— (1) the effect of a provision of title 10, United States Code, including any authority or requirement therein; (2) a department or agency interpretation with respect to title 10, United States Code; or (3) a judicial interpretation with respect to title 10, United States Code.Effective date note
Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1822(b) · 134 Stat. 3388
Added · 10 U.S.C. § 3501
Pub. L. 116–283, § 1822(b), as added by Pub. L. 117–81, § 1701(k)(2)(B), transferred text of section 2306b of this title to this section. See Codification note above
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–283, § 1822(b), as added by Pub. L. 117–81, § 1701(k)(2)(B), transferred text of section 2306b of this title to this section. See Codification note above.Enacted provision · exact public law section
(b) Transfer of Subsection (a) of Section 2306b.— (1) Transfer.— Subsection (a) of section 2306b of title 10, United States Code, is transferred to section 3501 of such title, as added by subsection (a), and inserted after the section heading. (2) Conforming cross-reference amendment.— Paragraph (7) of such subsection (a), as so transferred, is amended by striking “subparagraphs (C) through (F) of subsection (i)(3)” and inserting “paragraphs (3) through (6) of section 3507(c) of this title”.Effective date note
Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1883(b)(2) · 134 Stat. 3388
Substituted · 10 U.S.C. § 3501(i)(3)(B)
Pub. L. 116–283, § 1883(b)(2), substituted “section 3226(b)” for “section 2334(e)(2)”
Source evidence
Code amendment note
Subsec. (i)(3)(B). Pub. L. 116–283, § 1883(b)(2), substituted “section 3226(b)” for “section 2334(e)(2)”.Enacted provision · exact public law section
* * Note: Classifications for Sec. 1883(b)(2): 10 USC 113, 118, 129a, 133b, 139a, 171a, 181, 231a, 483, 1091, 1501a, 1701a, 1706, 1724, 1734, 2113, 2343, 2350b, 2463, 2484, 2583, 2688, 3131, 3136, 3137, 3455, 3862, 3905, 4003, 4008, 4009, 4015, 4061, 4062, 4065, 4146, 4147, 4171, 4172, 4252, 4323, 4324, 4505, 4603, 4660, 4816, 4819, 4863, 4864, 4971, 4981, 7462, 7554, 8481, 8633, 8669b, 9082, 9462. (2) Title 10.— Except as otherwise provided in this title, in title 10, United States Code, each reference in the text of such title to a source section is amended by striking such reference and inserting a reference to the appropriate redesignated section.Effective date note
Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021
Pub. L. 116–283 § 1883(b)(2) · 134 Stat. 3388
Substituted · 10 U.S.C. § 3501(i)(3)(C)
Pub. L. 116–283, § 1883(b)(2), substituted “section 4374” for “section 2433(d)”
Source evidence
Code amendment note
Subsec. (i)(3)(C). Pub. L. 116–283, § 1883(b)(2), substituted “section 4374” for “section 2433(d)”.Enacted provision · exact public law section
* * Note: Classifications for Sec. 1883(b)(2): 10 USC 113, 118, 129a, 133b, 139a, 171a, 181, 231a, 483, 1091, 1501a, 1701a, 1706, 1724, 1734, 2113, 2343, 2350b, 2463, 2484, 2583, 2688, 3131, 3136, 3137, 3455, 3862, 3905, 4003, 4008, 4009, 4015, 4061, 4062, 4065, 4146, 4147, 4171, 4172, 4252, 4323, 4324, 4505, 4603, 4660, 4816, 4819, 4863, 4864, 4971, 4981, 7462, 7554, 8481, 8633, 8669b, 9082, 9462. (2) Title 10.— Except as otherwise provided in this title, in title 10, United States Code, each reference in the text of such title to a source section is amended by striking such reference and inserting a reference to the appropriate redesignated section.Effective date note
Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.National Defense Authorization Act for Fiscal Year 2022
Pub. L. 117–81 § 1701(k)(1)(B) · 135 Stat. 1541
Substituted · 10 U.S.C. § 3501
Pub. L. 117–81, § 1701(k)(1)(B), amended Pub. L. 116–283, § 1822(a), which enacted this section, by substituting “Multiyear contracts: acquisition of property” for “Multiyear contracts for acquisition of property: authority; definitions” in section catchline
Source evidence
Code amendment note
Pub. L. 117–81, § 1701(k)(1)(B), amended Pub. L. 116–283, § 1822(a), which enacted this section, by substituting “Multiyear contracts: acquisition of property” for “Multiyear contracts for acquisition of property: authority; definitions” in section catchline.Enacted provision · exact public law section
(B) by striking the section headings for sections 3501 through 3511 and inserting the following: “§ 3501. Multiyear contracts: acquisition of property” .Effective date note
Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.James M. Inhofe National Defense Authorization Act for Fiscal Year 2023
Pub. L. 117–263 div. A title VIII § 815 · 136 Stat. 2395
Substituted · 10 U.S.C. § 3501(i)(2)
Pub. L. 117–263 substituted “shall include in the request a report” for “shall include in the request the following:
Source evidence
Code amendment note
Subsec. (i)(2). Pub. L. 117–263 substituted “shall include in the request a report” for “shall include in the request the following:“(A) A report” and struck out subpar. (B) which read as follows: “Confirmation that the preliminary findings of the agency head under subparagraph (A) were supported by a preliminary cost analysis performed by the Director of Cost Assessment and Program Evaluation.”
Enacted provision · exact public law section
SEC. 815. MODIFICATION OF REPORTING REQUIREMENT IN CONNECTION WITH REQUESTS FOR MULTIYEAR PROCUREMENT AUTHORITY FOR LARGE DEFENSE ACQUISITIONS. Section 3501(i)(2) of title 10, United States Code, is amended— (1) by striking “shall include” and all that follows through “(A) A report” and inserting “shall include in the request a report”; and (2) by striking subparagraph (B).National Defense Authorization Act for Fiscal Year 2024
Pub. L. 118–31 div. A title VIII § 820 · 137 Stat. 136
Inserted · 10 U.S.C. § 3501(a)(1)
Pub. L. 118–31 inserted dash after “will result in” and subpar. (A) designation before “significant savings”
Substituted · 10 U.S.C. § 3501(a)(1)
Pub. L. 118–31 substituted “; or” for period at end
Added · 10 U.S.C. § 3501(a)(1)
Pub. L. 118–31 added subpar. (B)
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 118–31 inserted dash after “will result in” and subpar. (A) designation before “significant savings”, substituted “; or” for period at end, and added subpar. (B).Enacted provision · exact public law section
SEC. 820. AMENDMENTS TO MULTIYEAR PROCUREMENT AUTHORITY. Section 3501(a)(1) of title 10, United States Code, is amended— (1) by striking “will result in significant savings” and inserting the following: “will result in— “(A) significant savings” ; and (2) by striking “annual contracts.” and inserting the following: “annual contracts; or “(B) necessary defense industrial base stability not otherwise achievable through annual contracts.” .Pub. L. 119–60 div. A title VIII § 804(c) · 139 Stat. 944
Struck · 10 U.S.C. § 3501(a)(1)(A)
Pub. L. 119–60 struck out “significant” before “savings”
Unresolved: Pub. L. 119–60 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (a)(1)(A). Pub. L. 119–60 struck out “significant” before “savings”.
8 of 10 references resolved to an enrolled provision · 1 partial · 1 unresolved
Editorial Notes
References in Text
Subsection (i)(1)(A), referred to in subsec. (g)(2), related to certification of full funding of support costs in multiyear contracts, prior to the general amendment of subsec. (i) by Pub. L. 113–291, div. A, title VIII, § 816(a), , 128 Stat. 3430. As amended, subsec. (i) no longer contains a par. (1)(A).
Codification
Pub. L. 116–283, § 1822(b)–(l), which had initially directed the transfers of various subsections of section 2306b of this title to sections 3501 to 3511, was amended by Pub. L. 117–81, § 1701(k)(2), by striking out subsecs. (b) to (l) and adding a new subsec. (b). After that amendment, such transfers were no longer directed. Instead, Pub. L. 116–283, § 1822(b), as added by Pub. L. 117–81, directed the transfer of section 2306b of this title in its entirety to this section, thereby omitting what would have been sections 3502 to 3511 of this title. The transfer of section 2306b to this section was executed by transferring the text only of section 2306b, as the section designation and catchline had already been enacted by Pub. L. 116–283, § 1822(a), as amended by Pub. L. 117–81, § 1701(k)(1)(B).
The text of section 2306b of this title, which was transferred to this section by Pub. L. 116–283, § 1822(b), as amended by Pub. L. 117–81, § 1701(k)(2)(B), was based on Pub. L. 103–355, title I, § 1022(a)(1), , 108 Stat. 3257; Pub. L. 104–106, div. A, title XV, § 1502(a)(10), div. E, title LVI, § 5601(b), , 110 Stat. 503, 699; Pub. L. 105–85, div. A, title VIII, § 806(a)(1), (b)(1), (c), title X, § 1073(a)(47), (48)(A), , 111 Stat. 1834, 1835, 1903; Pub. L. 106–65, div. A, title VIII, § 809, title X, § 1067(1), , 113 Stat. 705, 774; Pub. L. 106–398, § 1 [[div. A], title VIII, §§ 802(c), 806], , 114 Stat. 1654, 1654A–205, 1654A–207; Pub. L. 107–296, title XVII, § 1704(b)(1), , 116 Stat. 2314; Pub. L. 107–314, div. A, title VIII, § 820(a), , 116 Stat. 2613; Pub. L. 108–136, div. A, title X, § 1043(b)(10), , 117 Stat. 1611; Pub. L. 108–375, div. A, title VIII, § 814(a), title X, § 1084(b)(2), , 118 Stat. 2014, 2060; Pub. L. 110–181, div. A, title VIII, § 811(a), , 122 Stat. 217; Pub. L. 111–23, title I, § 101(d)(2), , 123 Stat. 1709; Pub. L. 113–291, div. A, title VIII, § 816(a), (b), , 128 Stat. 3430, 3432; Pub. L. 114–92, div. A, title VIII, § 811, , 129 Stat. 891; Pub. L. 115–91, div. A, title X, § 1051(a)(14), , 131 Stat. 1561; Pub. L. 115–232, div. A, title VIII, § 817, , 132 Stat. 1852; Pub. L. 116–92, div. A, title IX, § 902(48), , 133 Stat. 1548.
Prior Provisions
Prior sections 3501 and 3502 were repealed by Pub. L. 103–337, div. A, title XVI, §§ 1662(f)(2), 1691, , 108 Stat. 2994, 3026, effective .
Section 3501, acts Aug. 10, 1956, ch. 1041, 70A Stat. 199; , Pub. L. 100–456, div. A, title XII, § 1234(a)(1), 102 Stat. 2059, related to period of service and apportionment of members and units of Army National Guard called into Federal service. See section 12407 of this title.
Section 3502, act Aug. 10, 1956, ch. 1041, 70A Stat. 200, related to physical examinations of members of Army National Guard called into Federal service. See section 12408 of this title.
A prior section 3503 was renumbered section 7203 of this title.
Prior sections 3504, 3531, and 3532 were repealed by Pub. L. 96–513, title II, §§ 210, 233(a), 234, title VII, § 701, , 94 Stat. 2884, 2887, 2955, effective .
Section 3504, acts Aug. 10, 1956, ch. 1041, 70A Stat. 200; , Pub. L. 85–861, § 1(83), 72 Stat. 1481, authorized the President to order any retired member of the Regular Army to active duty.
Amendments2021–2025 · 4 rounds
2025
Subsec. (a)(1)(A). Pub. L. 119–60 struck out “significant” before “savings”.
2023
Subsec. (a)(1). Pub. L. 118–31 inserted dash after “will result in” and subpar. (A) designation before “significant savings”, substituted “; or” for period at end, and added subpar. (B).
2022
Subsec. (i)(2). Pub. L. 117–263 substituted “shall include in the request a report” for “shall include in the request the following:
“(A) A report” and struck out subpar. (B) which read as follows: “Confirmation that the preliminary findings of the agency head under subparagraph (A) were supported by a preliminary cost analysis performed by the Director of Cost Assessment and Program Evaluation.”
2021
Pub. L. 117–81, § 1701(k)(1)(B), amended Pub. L. 116–283, § 1822(a), which enacted this section, by substituting “Multiyear contracts: acquisition of property” for “Multiyear contracts for acquisition of property: authority; definitions” in section catchline.
Pub. L. 116–283, § 1822(b), as added by Pub. L. 117–81, § 1701(k)(2)(B), transferred text of section 2306b of this title to this section. See Codification note above.
Subsec. (i)(3)(B). Pub. L. 116–283, § 1883(b)(2), substituted “section 3226(b)” for “section 2334(e)(2)”.
Subsec. (i)(3)(C). Pub. L. 116–283, § 1883(b)(2), substituted “section 4374” for “section 2433(d)”.
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and Effective Date note below.
Effective Date
Section and amendment by Pub. L. 116–283 effective , with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as an Effective Date of 2021 Amendment note preceding section 3001 of this title.
Multiyear Procurement Authority for Covered Systems and Certain Munitions
Pub. L. 119–60, div. A, title VIII, § 804(a), (b), , 139 Stat. 942, provided that:
“(a) Multiyear Procurement for Covered Systems.—
“(1) In general.—
Subject to section 3501 of title 10, United States Code, the Secretary of the Defense shall submit to Congress a request for a specific authorization to enter into one or more multiyear contracts for the procurement of a covered system if—
“(A) a decision has been made by the responsible head of agency to proceed to full-rate production for such covered system; and
“(B) such covered system is planned to maintain full-rate production for a period of five or more consecutive years after entering into such a contract.
“(2) Waiver.—
The Secretary of Defense may waive the requirements of paragraph (1) if the Secretary determines that the projected threat environment in which the covered system is to be fielded has changed in a manner such that the procurement of such covered system is no longer necessary.
“(3) Applicability.—
This section and the requirements of this section shall apply with respect to a multiyear contract for the procurement of a covered system entered into on or after the date of the enactment of this Act [].
“(4) Covered system defined.—
In this subsection, the term ‘covered system’ has the meaning given ‘major system’ in section 3041 of title 10, United States Code.
“(b) Multiyear Procurement for Certain Munitions.—
“(1) In general.—
Except as provided in paragraph (3), subject to section 3501 of title 10, United States Code, the head of an agency is authorized to enter into one or more multiyear contracts, beginning in fiscal year 2026, for the procurement of any of the following:
“(A) Standard Missile-3 (‘SM–3’) Block 1B missile systems (and products, services, and logistics support associated with SM–3 Block 1B systems or a subsystem that performs a critical function of the missile system).
“(B) Standard Missile-6 (‘SM–6’) missile systems (and products, services, and logistics support associated with SM–6 systems or a subsystem that performs a critical function of the missile system).
“(C) Tomahawk Cruise Missile systems, including both Tomahawk Cruise Missile system variants (and products, services, and logistics support associated with Tomahawk Cruise Missile systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years.
“(D) Advanced Medium-Range Air-to-Air Missile (‘AMRAAM’) systems (and products, services, and logistics support associated with AMRAAM systems or a subsystem that performs a critical function of the missile system).
“(E) Joint Air-to-Surface Standoff Missile (‘JASSM’) systems (and products, services, and logistics support associated with JASSM systems or a subsystem that performs a critical function of the missile system).
“(F) Long Range Anti-Ship Missile (‘LRASM’) systems (and products, services, and logistics support associated with LRASM systems or a subsystem that performs a critical function of the missile system).
“(G) Terminal High Altitude Area Defense (‘THAAD’) systems (and products, services, and logistics support associated with THAAD systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years.
“(H) Patriot Advanced Capability-3 (‘PAC–3’) Missile Segment Enhancement (MSE) systems (and products, services, and logistics support associated with PAC–3 MSE systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years.
“(I) Family of Affordable Mass Munitions (‘FAMM’), Extended-Range Attack Munition (‘ERAM’), Enterprise Test Vehicle (‘ETV’), or ground-launched low-cost cruise missile systems (and products, services, and logistics support associated with FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems or a subsystem that performs a critical function of the missile system).
“(J) Low-cost hypersonic strike systems (and products, services, and logistics support associated with low-cost hypersonic strike systems or a subsystem that performs a critical function of the missile system).
“(2) Procurement in conjunction with existing contracts.—
The systems and subsystems described in paragraph (1) may be procured through modifications or extensions to any existing contract for such systems and subsystems.
“(3) Limited applicability of multiyear contracting provision.—
Paragraphs (3)(B), (3)(C), (3)(D), and (4) of subsection (i) of section 3501 of title 10, United States Code, shall not apply with respect to a multiyear contract entered into under this subsection.
“(4) Additional requirements.—
“(A) Design stability.—
Notwithstanding subsection 3501(a)(4) of this title, with respect to a multiyear contract entered into under this subsection that provides, in the terms of such contract included on the date on which such contract is entered into, for the potential insertion of upgraded components or design changes that address obsolescence or producibility requirements, such upgraded components or design changes may be included in the end product if, not later than 180 days before the insertion of such upgraded components or design changes, the head of an agency that is a party to such contract provides to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a briefing on such upgraded components or design changes, including a testing plan to ensure such upgraded components or design changes will meet system requirements.
“(B) Certification requirements.—
In applying the requirements of subsection (i)(3) of section 3501 of title 10, United States Code, to a multiyear contract entered into under this subsection, the Secretary of Defense may not make the certification described in such subsection—
“(i) for Tomahawk Cruise Missile systems described in paragraph (1)(C), until the Secretary has provided a certification for FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems described in paragraph (1)(I);
“(ii) for JASSM systems described in paragraph (1)(E), until the Secretary has provided a certification for FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems described in paragraph (1)(I);and
“(iii) for SM–6 missile systems described in paragraph (1)(B), until the Secretary has provided a certification for low-cost hypersonic strike systems described in paragraph (1)(J).
“(5) Authority for advance procurement.—
The head of an agency may enter into one or more contracts for advance procurement, beginning in fiscal year 2026, associated with a system or subsystem described in paragraph (1) for which authorization to enter into a multiyear procurement contract is provided under such paragraph, which may include procurement of economic order quantities of material and equipment when cost savings are achievable.
“(6) Condition for out-year contract payments.—
A contract entered into under paragraph (1) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2026 is subject to the availability of appropriations for that purpose for such later fiscal year.
“(7) Head of an agency defined.—
In this subsection, the term ‘head of an agency’ means—
“(A) the Secretary of Defense;
“(B) the Secretary of the Army;
“(C) the Secretary of the Navy; or
“(D) the Secretary of the Air Force.”
Multiple Program Multiyear Contract Pilot Demonstration Program
Pub. L. 114–328, div. A, title VIII, § 853, , 130 Stat. 2296, provided that:
“(a) Authority.—
The Secretary of Defense may conduct a multiyear contract, over a period of up to four years, for the purchase of units for multiple defense programs that are produced at common facilities at a high rate, and which maximize commonality, efficiencies, and quality, in order to provide maximum benefit to the Department of Defense. Contracts awarded under this section should allow for significant savings, as determined consistent with the authority under section 2306b of title 10, United States Code [see 10 U.S.C. 3501], to be achieved as compared to using separate annual contracts under individual programs to purchase such units, and may include flexible delivery across the overall period of performance.
“(b) Scope.—
The contracts authorized in subsection (a) shall at a minimum provide for the acquisition of units from three discrete programs from two of the military departments.
“(c) Documentation.—
Each contract awarded under subsection (a) shall include the documentation required to be provided for a multiyear contract proposal under section 2306b(i) of title 10 [see 10 U.S.C. 3501(i)].
“(d) Definitions.—
In this section:
“(1) The term ‘high rate’ means total annual production across the multiple defense programs of more than 200 end-items per year.
“(2) The term ‘common facilities’ means production facilities operating within the same general and allowable rate structure.
“(e) Sunset.—
No new contracts may be awarded under the authority of this section after .”
Multiyear Procurement Contracts
Pub. L. 105–56, title VIII, § 8008, , 111 Stat. 1221, provided that:
“(a) None of the funds provided in this Act [see Tables for classification] shall be available to initiate: (1) a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract or that includes an unfunded contingent liability in excess of $20,000,000; or (2) a contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year, unless the congressional defense committees [Committee on Armed Services and Subcommittee on National Security of the Committee on Appropriations of the House of Representatives and Committee on Armed Services and Subcommittee on Defense of the Committee on Appropriations of the Senate] have been notified at least 30 days in advance of the proposed contract award: Provided, That no part of any appropriation contained in this Act shall be available to initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability: Provided further, That no part of any appropriation contained in this Act shall be available to initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed $500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated without 10-day prior notification to the congressional defense committees: Provided further, That the execution of multiyear authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement.
“Funds appropriated in title III of this Act [111 Stat. 1211] may be used for multiyear procurement contracts as follows:
“Apache Longbow radar;
“AV–8B aircraft; and
“Family of Medium Tactical Vehicles.
“(b) None of the funds provided in this Act and hereafter may be used to submit to Congress (or to any committee of Congress) a request for authority to enter into a contract covered by those provisions of subsection (a) that precede the first proviso of that subsection unless—
“(1) such request is made as part of the submission of the President’s Budget for the United States Government for any fiscal year and is set forth in the Appendix to that budget as part of proposed legislative language for appropriations bills for the next fiscal year; or
“(2) such request is formally submitted by the President as a budget amendment; or
“(3) the Secretary of Defense makes such request in writing to the congressional defense committees.”
Similar provisions were contained in the following appropriation acts:
Pub. L. 119–75, div. A, title VIII, § 8010, , 140 Stat. 198.
Pub. L. 118–47, div. A, title VIII, § 8010, , 138 Stat. 483.
Pub. L. 117–328, div. C, title VIII, § 8010, , 136 Stat. 4587.
Pub. L. 117–103, div. C, title VIII, § 8010, , 136 Stat. 175.
Pub. L. 116–260, div. C, title VIII, § 8010, , 134 Stat. 1304.
Pub. L. 116–93, div. A, title VIII, § 8010, , 133 Stat. 2337.
Pub. L. 115–245, div. A, title VIII, § 8010, , 132 Stat. 3000.
Pub. L. 115–141, div. C, title VIII, § 8010, , 132 Stat. 464.
Pub. L. 115–31, div. C, title VIII, § 8010, , 131 Stat. 247.
Pub. L. 114–113, div. C, title VIII, § 8010, , 129 Stat. 2352.
Pub. L. 113–235, div. C, title VIII, § 8010, , 128 Stat. 2253.
Pub. L. 113–76, div. C, title VIII, § 8010, , 128 Stat. 105.
Pub. L. 113–6, div. C, title VIII, § 8010, , 127 Stat. 297.
Pub. L. 112–74, div. A, title VIII, § 8010, , 125 Stat. 806.
Pub. L. 112–10, div. A, title VIII, § 8010, , 125 Stat. 57.
Pub. L. 111–118, div. A, title VIII, § 8011, , 123 Stat. 3428, as amended by Pub. L. 111–212, title I, § 305, , 124 Stat. 2311.
Pub. L. 110–329, div. C, title VIII, § 8011, , 122 Stat. 3621.
Pub. L. 110–116, div. A, title VIII, § 8010, , 121 Stat. 1315.
Pub. L. 109–289, div. A, title VIII, § 8008, , 120 Stat. 1273.
Pub. L. 109–148, div. A, title VIII, § 8008, , 119 Stat. 2698.
Pub. L. 108–287, title VIII, § 8008, , 118 Stat. 970.
Pub. L. 108–87, title VIII, § 8008, , 117 Stat. 1072.
Pub. L. 107–248, title VIII, § 8008, , 116 Stat. 1537.
Pub. L. 107–117, div. A, title VIII, § 8008, , 115 Stat. 2248.
Pub. L. 106–259, title VIII, § 8008, , 114 Stat. 675.
Pub. L. 106–79, title VIII, § 8008, , 113 Stat. 1232.
Pub. L. 105–262, title VIII, § 8008, , 112 Stat. 2298.
Pub. L. 104–208, div. A, title I, § 101(b) [title VIII, § 8009], , 110 Stat. 3009–71, 3009–89.
Pub. L. 104–61, title VIII, § 8010, , 109 Stat. 653.
Pub. L. 103–335, title VIII, § 8010, , 108 Stat. 2618.
Pub. L. 103–139, title VIII, § 8011, , 107 Stat. 1439.
Pub. L. 102–396, title IX, § 9013, , 106 Stat. 1903.
Pub. L. 102–172, title VIII, § 8013, , 105 Stat. 1173.
Credits
2021–2025 · 6 acts
- 2021Added and amended Pub. L. 116–283, div. A, title XVIII, §§ 1822(a), 1883(b)(2), , 134 Stat. 4197, 4294
- 2021Pub. L. 116–283, div. A, title XVIII, § 1822(b), as added Pub. L. 117–81, div. A, title XVII, § 1701(k)(2)(B), , 135 Stat. 2143
- 2021Pub. L. 117–81, div. A, title XVII, § 1701(k)(1)(B), (2)(A), , 135 Stat. 2143
- 2022Pub. L. 117–263, div. A, title VIII, § 815, , 136 Stat. 2707
- 2023Pub. L. 118–31, div. A, title VIII, § 820, , 137 Stat. 326
- 2025Pub. L. 119–60, div. A, title VIII, § 804(c), , 139 Stat. 944.
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(Added and amended Pub. L. 116–283, div. A, title XVIII, §§ 1822(a), 1883(b)(2), , 134 Stat. 4197, 4294; Pub. L. 116–283, div. A, title XVIII, § 1822(b), as added Pub. L. 117–81, div. A, title XVII, § 1701(k)(2)(B), , 135 Stat. 2143; Pub. L. 117–81, div. A, title XVII, § 1701(k)(1)(B), (2)(A), , 135 Stat. 2143; Pub. L. 117–263, div. A, title VIII, § 815, , 136 Stat. 2707; Pub. L. 118–31, div. A, title VIII, § 820, , 137 Stat. 326; Pub. L. 119–60, div. A, title VIII, § 804(c), , 139 Stat. 944.)