← LEADERSHIP TERMINAL

US CONGRESS · SITTING

Mike D. Rogers

Representative for Alabama · Republican · United States

IN THEIR OWN WORDS

(8) An assessment of NATO's deterrence efforts in Romania, including a description and evaluation of-- (A) United States force posture in Romania, including any new rotations to Romania intended to enhance deterrence following the 2025 decision to end the rotational presence of a United States brigade; (B) consultations with NATO allies r…

CREC-2026-07-21-PT1-PGH4736 · READ IN THE CONGRESSIONAL RECORD

(8) An assessment of NATO's deterrence efforts in Romania, including a description and evaluation of-- (A) United States force posture in Romania, including any new rotations to Romania intended to enhance deterrence following the 2025 decision to end the rotational presence of a United States brigade; (B) consultations with NATO allies r…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

(a) Requirement for Risk-based Approach.--Section 3843 of title 10, United States Code, is amended to read as follows: ``Sec. 3843. Contractor business systems: monitoring and surveillance standards ``(a) Requirement for Risk-based Approach.--The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contra…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

(a) Requirement for Risk-based Approach.--Section 3843 of title 10, United States Code, is amended to read as follows: ``Sec. 3843. Contractor business systems: monitoring and surveillance standards ``(a) Requirement for Risk-based Approach.--The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contra…

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(b) Modification of Certain Certifications and Assessments.-- (1) Certifications.--Section 1249(b) of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60) is amended-- (A) in the matter preceding paragraph (1), by striking ``The certification described'' and inserting following: ``(1) In general.--Except as prov…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

(b) Objectives.--The Commander shall ensure that the Cognitive Performance Enhancement Program-- (1) improves readiness, resilience, and recovery, using evidence-based holistic and proactive high-performance brain training that has a validated ability to scale cost- effectively across the special operations forces enterprise; [[Page H4842…

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2027 · 2026-07-21 · READ IN THE CONGRESSIONAL RECORD

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  1. (b) Implementation.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall-- (1) implement sections 3792 and 3792a of title 10, United States Code, as inserted by this section; (2) provide a briefing to the congressional defense committees on the implementation of such sections; and (3) submit to the congressional defense committees an assessment of, and recommendations for, pay and compensation under current law to provide competitive compensation for the Intellectual Property Ombudsman established under section 3792 of title 10, United States Code, as inserted by this Act.

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  2. ``(j) Definitions.--In this section-- ``(1) the term `covered contractor' includes a contractor or subcontractor; ``(2) the term `covered data' means technical data and computer software required to enable the Department of Defense or government authorized repair contractors performing under a support contract, to perform repair or maintenance actions on a covered system; ``(3) the term `covered system' means-- ``(A) a major defense acquisition program, as defined in section 4201 of this title; or ``(B) an acquisition program or project that is carried out using the rapid prototyping or rapid fielding acquisition pathway under section 3602 of this title that is estimated by the Secretary of Defense to require an eventual total expenditure described in section 4201(a)(2) of this title; ``(4) the term `non-deliverable access' means a model under which the contractor provides access to intellectual property, including any associated license agreements for such intellectual property; and ``(5) the term `subcontractor' includes a subcontractor at any tier.''.

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  3. ``(2) Each member of the panel shall-- ``(A) sign a nondisclosure agreement, as appropriate, to protect proprietary or nonpublic data; ``(B) access and use proprietary or nonpublic data furnished to the panel only for the purposes of the mediation; ``(C) take all reasonable steps to protect proprietary and nonpublic data furnished to the panel; and ``(D) not use proprietary or nonpublic data furnished to the panel to compete for Government or nongovernment contracts.

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  4. ``(C) If the Secretary approves the recommendation, the recommendation shall be binding on the covered contractor and the Department, subject to the availability of appropriations. The parties shall memorialize the recommendation in a settlement agreement, as described in paragraph (2). To the extent the recommendation does not reach a full resolution of the dispute, paragraph (3) shall apply. ``(i) Confidentiality; Protection of Information.--(1) The mediation shall be conducted in accordance with section 574 of title 5.

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  5. 3771 note) and an insufficiency was identified under subsection (d) of such section. ``(B) Such a recommendation-- ``(i) shall ensure release rights consistent with commercially reasonable terms and conditions (subject to later definitized consideration to reflect development at private expense); and ``(ii) may include a right to release to a covered government support contractor (as defined in section 3775 of this title)-- ``(I) subject to a prohibition that the covered government support contractor to which the data is released may not further release, disclose, or use the covered data beyond the purpose for which it was released; and ``(II) subject to notice by the contracting officer to the covered contractor of any such release.

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  6. ``(4) In a case in which the request to initiate the mediation regarding a contract entered into after the date of the enactment of this section was made by the Department and no resolution is reached, the following shall apply: ``(A) The panel may recommend to the Secretary of Defense that the covered contractor with rights in the subject covered data be required to provide non-deliverable access to such covered data if-- ``(i) the panel finds that access to such covered data is necessary-- ``(I) to address a critical operational requirement; ``(II) to meet a critical materiel readiness objective for a major weapon system (as established in accordance with section 118 of this title); or ``(III) to address a shortfall in a critical readiness item of supply (as defined in section 4324 of this title) or recurring insufficiency of supply that the responsible contractor has failed to remedy in response to a corrective action plan developed in accordance with section 4323 of this title; and ``(ii) the requirement for such covered data was reviewed under section 805 of the National Defense Authorization Act for Fiscal Year 2026 (10 U.S.C.

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  7. ``(3) To the extent the parties do not reach a full resolution-- ``(A) either party may pursue any remedy otherwise available under chapter 71 of title 41 or other applicable law; and ``(B) the mediation shall not be deemed to have resolved the dispute for purposes of chapter 71 of title 41.

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  8. ``(h) Effect of Mediation Settlement or Panel Recommendations.--(1) Except as provided in paragraphs (2) and (4), the results of the mediation shall be advisory only and shall not be binding on either party. ``(2) To the extent the parties reach a resolution, the parties shall memorialize the resolution in a settlement agreement, which shall be binding upon the parties. Any such agreement shall-- ``(A) be executed by the contracting officer and an authorized representative of the covered contractor; ``(B) specifically reference the mediation; and ``(C) be incorporated into any applicable contract by modification.

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  9. ``(6) An individual may not serve as a member of the panel if that individual has a financial interest in the outcome or any other conflict of interest that would undermine impartiality. ``(7) In a case in which there is a vacancy in the membership of the panel, a new member of the panel shall be selected as soon as practicable to fill the vacancy in accordance with paragraph (4). ``(g) Mediation Period.--The panel shall be established as soon as practicable and shall commence the mediation not later than 30 days after the date on which the panel is established, except to the extent the parties agree to a later date. The mediation shall end not later than 90 [[Page H4828]] days after the date on which the mediation commenced, except to the extent the parties agree to a later date.

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  10. ``(4) Of the three members-- ``(A) one shall be selected by the covered contractor and shall have significant experience in intellectual property or data rights matters; ``(B) one shall be selected by the Department and shall have significant experience in intellectual property or data rights matters in government contracts, such as through service as a contracting officer, agency counsel, board of contract appeals judge, or Court of Federal Claims judge; and ``(C) one shall be selected by the other two members and shall serve as the panel chair. ``(5) If the question or dispute involves the valuation of intellectual property, the member selected under paragraph (4)(C) shall have significant experience with standard industry valuation techniques, including cost, market, and income.

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  11. ``(f) Establishment of Panel.--(1) Mediation under the process established under subsection (a) shall be conducted by a panel established under this subsection. ``(2) The Secretary may use existing authorities, including those in paragraphs (2), (3), (4), and (6) of section 1707(d) of this title, to establish the panel. ``(3) The panel shall be composed of three members, each of whom shall be an individual with-- ``(A) at least 5 years of experience in alternative dispute resolution; and ``(B) demonstrated expertise in at least two of the following areas: intellectual property law, patent licensing, government contracts data rights, technical data classification, and software licensing.

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  12. ``(d) Participation Is Voluntary.--Participation in the process established under subsection (a) shall be strictly voluntary, both on the part of the contracting officer and on the part of the covered contractor, except as provided in subsection (h). ``(e) Initiation and Participation.--(1) Within 10 days after receiving a request under this subsection, a party shall submit to the other party a written response either accepting or declining the request. ``(2) A party submitting a written request to initiate, or any written response accepting such a request, shall include facts supporting the position of the party that the requirements of paragraphs (1) and (2) of subsection (a) are met. ``(3) If the request to initiate is accepted, a panel shall be established under subsection (f) and mediation shall commence under subsection (g).

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  13. ``(4) To the extent the intellectual property involves more than one covered contractor, any matters necessary to address the respective rights of the Government and each such contractor. ``(c) Availability and Effect.--The process established under subsection (a) shall be available whenever a question or dispute covered by subsection (a) has arisen, including before, during, or after a procurement and before, during, or after the administration of a contract. It shall be available without regard to, and without effect on, any other dispute resolution processes that may be available, and without tolling any periods or deadlines under any other dispute resolution processes or under any applicable statute of limitations.

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  14. ``(b) Matters Addressed.--The process established under subsection (a) may be used to address any intellectual property matters relevant to the resolution of the question or dispute, including matters such as the following: ``(1) The scope, terms, or interpretation of any relevant agreement with respect to the intellectual property. ``(2) The scope of the rights acquired or licensed (or proposed to be acquired or licensed) by the Government in the intellectual property. ``(3) To the extent the Government's rights in intellectual property are insufficient, or perceived as insufficient, to meet the Department's identified requirement, any matters necessary to address the insufficiency.

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  15. ``(k) Definitions.--In this section-- ``(1) the term `covered contractor' includes a contractor or subcontractor (or prospective contractor or subcontractor); and ``(2) the term `subcontractor' includes a subcontractor at any tier. ``Sec. 3792a. Rights in covered data: voluntary expert mediation ``(a) Establishment and Availability of Process.--The Secretary of Defense shall establish an expert mediation process under this section and shall make that process available to covered contractors and contracting officers to facilitate the resolution of questions or disputes related to covered data.

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  16. The statistical information shall be presented in an aggregated or anonymized format and shall include information on the number of requests, the nature of requests, the nature of the contractors (such as small business concerns), the disposition of the requests, and the number of days from receipt of request to final disposition of the request. ``(j) Reports to Congress.--On an annual basis, the Ombudsman shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the activities performed during the annual period covered by the report, including any recommendations for changes in law, regulation, policy, procedure, or practice that the Ombudsman considers appropriate.

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  17. ``(h) Consultation.--The Assistant Secretary shall establish a mechanism for regular consultation with the defense industry, portfolio acquisition executives, program managers, product support managers, and other officials of the Department responsible for sustainment of defense systems regarding the utility and effectiveness of the Ombudsman function and emerging intellectual property issues. ``(i) Public Reporting of Statistics.--On an annual basis, the Ombudsman shall make publicly available a report providing statistical information on the assistance specified in subsection (e) that was provided to covered contractors during the annual period covered by the report.

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  18. ``(3) A requirement to publish a copy of, or any other information with respect to, communications between a covered contractor and the Ombudsman shall not apply to the extent such copy (or portion thereof) or information would be subject to withholding from public disclosure under section 552 of title 5. ``(g) Inferences.--The decision of a covered contractor to request, or decline to request, assistance from the Ombudsman shall not give rise to any inference regarding the validity of the covered contractor's assertions related to intellectual property and shall not be disclosed or referenced in any validation challenge, litigation, or other legal proceeding.

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  19. ``(f) Communications Between Contractor and Ombudsman; Confidentiality; Restrictions on Government.--(1) Any communication between a covered contractor and the Ombudsman, including the fact that such a communication occurred, shall be treated as confidential and shall not be disclosed to any person or entity that is not a party to the question or dispute or does not have an interest in the specific question or dispute without the consent of the covered contractor. ``(2) The Government shall not require a covered contractor to disclose any such communication and shall not use any such communication as a basis for evaluating a proposal, making an award, or challenging a restriction.

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  20. ``(2) Notwithstanding paragraph (1), the authority of the Ombudsman shall extend only to questions and disputes between covered contractors and the Department, and shall not extend to questions or disputes between or among covered contractors. ``(e) Nature of Guidance.--Guidance provided by the Ombudsman under this section-- ``(1) may include analyses, opinions, and recommendations; ``(2) shall be independent and neutral with respect to the covered contractor, the contracting officer, and the Government, and ``(3) shall be advisory only and not binding on the covered contractor, the contracting officer, or the Government.

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  21. ``(d) Duties.--(1) The Ombudsman shall, with respect to questions or disputes involving intellectual property acquired or licensed (or proposed to be acquired or licensed) by the Department, including questions or disputes involving rights and obligations relating to the delivery of, or access to, such intellectual property-- ``(A) serve as the focal point for assisting covered contractors of the Department on such questions or disputes; ``(B) facilitate communication between covered contractors and appropriate senior officials of the Department on such questions or disputes; ``(C) promote the use of collaborative alternative dispute resolution techniques such as mediation to facilitate the expeditious and cost-effective resolution of such questions or disputes, when appropriate; ``(D) provide guidance to covered contractors and contracting officers with respect to such questions or disputes; and ``(E) upon request of a covered contractor or contracting officer involved in such a question or dispute-- ``(i) within 45 days after the request was made-- ``(I) obtain from the covered contractor (and any subcontractor involved in the question or dispute) and from the contracting officer information relevant to the question or dispute; and ``(II) complete a review of such information; ``(ii) promptly thereafter, develop and provide guidance to the covered contractor, the contracting officer, or both on matters relevant to the question or dispute, such as-- ``(I) relevant laws and regulations and how they apply to the question or dispute; ``(II) alternative approaches to acquisition or licensing that may be available under applicable laws and regulations, such as specifically negotiated licenses (including specially negotiated licenses under section 3774(c) of this title); and ``(III) appropriate valuation of intellectual property under standard industry valuation techniques, including cost, value, capability, market, and income-based techniques; and ``(iii) facilitate communications, and participate in meetings, between the covered contractor and the contracting officer.

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  22. ``(3) The Ombudsman shall not be subject to removal, demotion, or other adverse personnel action based on the substance of any advice, guidance, opinion, or recommendation provided by the Ombudsman to a covered contractor or to a contracting officer or other Department official. ``(c) Personnel and Resources.--The Assistant Secretary shall ensure that the Ombudsman is provided with personnel and resources sufficient to carry out his or her duties as Ombudsman.

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  23. ``(b) Preservation of Independence.--(1) The Ombudsman shall serve within the Office of the Assistant Secretary and report directly to the Assistant Secretary, without intervening authority, and shall not report to or receive direction from any military department, agency, combatant command, or other element of the Department. ``(2) The Assistant Secretary may assign to the official serving as Ombudsman other primary or collateral duties to the extent the official remains able to carry out his or her duties as Ombudsman, except that the official-- ``(A) may not perform any duty, or engage in any activity, that could compromise his or her independence as Ombudsman; and ``(B) may not advise on, or participate in, any source selection process, except to the extent [[Page H4827]] necessary to carry out his or her duties as Ombudsman.

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  24. ``(2) The Ombudsman shall be a senior official with-- ``(A) demonstrated expertise in matters involving intellectual property acquired or licensed (or proposed to be acquired or licensed) by the Department, including the provisions of the Department of Defense Supplement to the Federal Acquisition Regulation that relate to technical data and computer software; and ``(B) at least 5 years of experience on intellectual property matters, of which at least 2 years must have been representing or advising covered contractors of the Department on matters involving intellectual property acquired or licensed (or proposed to be acquired or licensed) by the Government.

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  25. Intellectual Property Ombudsman ``(a) Designation.--(1) The Secretary of Defense, acting through the Assistant Secretary of Defense for Industrial Base Policy, shall designate a senior official, to be known as the Intellectual Property Ombudsman, to serve as ombudsman on matters involving intellectual property acquired or licensed (or proposed to be acquired or licensed) by the Department.

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  26. (e) Applicability.--This section and the amendments made by this section shall apply-- (1) in competitive procurements, to solicitations issued after the date of the enactment of this Act and awards made in connection with such solicitations; and (2) in non-competitive procurements, to awards made after the date of the enactment of this Act. SEC. 862. INTELLECTUAL PROPERTY OMBUDSMAN; VOLUNTARY EXPERT MEDIATION FOR CERTAIN INTELLECTUAL PROPERTY MATTERS. (a) In General.--Subchapter III of chapter 275 of title 10, United States Code, is amended by inserting after section 3791 the following new sections: ``Sec. 3792.

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  27. (d) Modifications to Rights in Technical Data.--Section 3771(b) of title 10, United States Code, is amended-- (1) in paragraph (3)(C), by inserting ``, and for which the United States shall have government purpose rights, unless the Government and the contractor negotiate different license rights'' after ``component)''; and (2) in paragraph (4)(A)-- (A) in clause (ii), by striking ``; or'' and inserting a semicolon; (B) by redesignating clause (iii) as clause (iv); and (C) by inserting after clause (ii) the following new clause: ``(iii) is a release, disclosure, or use of detailed manufacturing or process data-- ``(I) that is necessary for operation, maintenance, installation, or training and shall be used only for operation, maintenance, installation, or training purposes supporting wartime operations or contingency operations; and ``(II) for which the head of an agency determines that the original supplier of such data will be unable to satisfy military readiness or operational requirements for such operations; or''.

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  28. The report shall include-- (1) an assessment of the extent to which improper restrictions on technical data or software rights may have resulted in excess costs to the Department; (2) an evaluation of existing authorities available to recover such excess payments; (3) an assessment of the legal, contractual, and evidentiary challenges associated with establishing a clawback mechanism; (4) options for calculating excess payments attributable to improper restrictions on technical data or software rights; and (5) recommendations regarding whether Congress should authorize a clawback mechanism and, if so, the structure of such authority.

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  29. (c) Report on Clawback Authorities for Improper Restrictive Markings.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report assessing the feasibility and advisability of establishing a mechanism to recover excess payments made by the Department of Defense in cases where improper restrictive markings, invalid assertions tables, or other unjustified restrictions on technical data, computer software, or computer software documentation contributed to reduced competition or sole- source procurement conditions.

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  30. (b) Improper Markings of Critical Items.--For any critical readiness items of supply (as that term is defined in section 4324(d)(4) of title 10, United States Code) that are noncommercial items, if the Secretary of Defense determines that a contractor-- (1) applied an incorrect restrictive marking; (2) failed to exclude unlimited- or unrestricted-rights categories; (3) failed to portion-mark at the required segregable level; or (4) submitted an incomplete or invalid assertions table; then all affected technical data, computer software, and documentation shall be deemed as government purpose rights.

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  31. ``(b) Contractor Burden.--A contractor asserting less-than- government purpose rights shall provide-- ``(1) a compliant assertions table identifying each specific item of data or software claimed; ``(2) factual documentation of private development funding; ``(3) clause-specific unlimited-rights exclusions applied at the lowest practicable segregable level; and ``(4) corresponding portion markings on the deliverables. ``(c) Failure to Substantiate.--Any failure by a contractor to comply with subsection (b) shall result in the deliverable being treated as provided with government purpose rights.''.

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  32. Subtitle D--Intellectual Property Matters SEC. 861. REFORM OF TECHNICAL DATA AND SOFTWARE RIGHTS TO SUPPORT COMPETITION, SUSTAINMENT, AND READINESS. (a) Default Government Purpose Rights for Deliverables.-- Chapter 239 of title 10, United States Code, is amended by inserting after section 3775 the following new section: ``Sec. 3776. Default government purpose rights for deliverables under Department of Defense contracts ``(a) Default Rights.--Except as provided in subsection (b), any technical data, computer software, or computer software documentation delivered under a contract, subcontract, or other agreement entered into by the Department of Defense shall be provided with government purpose rights unless the contractor establishes, through clear and convincing evidence, entitlement to more restrictive rights.

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  33. Such briefing shall include-- (1) the current number of individuals participating in the acquisition workforce demonstration project under such section 1762, disaggregated by military department and Defense Agency; (2) expected growth in participation in the demonstration project over the next 24 months, including anticipated and confirmed transitions of organizations or elements into the demonstration project and estimated implementation timelines for such transitions; (3) an identification of military departments and other elements of the Department of Defense that have expressed interest in expanding participation in the demonstration project or transitioning additional individuals into the demonstration project; (4) an assessment of the extent to which statutory limitations on the authorities in section 1762 affect workforce planning or use of the authorities; (5) steps taken to increase and measure average workforce understanding of how contributions scores under the demonstration project are derived; (6) findings relevant to the demonstration project based on data from tools used to measure employee satisfaction, such as Defense Organizational Climate Surveys or the Federal Employee Viewpoint Survey; and (7) recommendations on any additional steps, authorities, or flexibilities the Under Secretary considers necessary to support the development of the acquisition workforce.

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  34. (c) Briefing on Utilization of Acquisition Workforce Demonstration Project Authorities.--Not later than December 1, 2026, the Under Secretary of Defense for Acquisition and Sustainment shall provide a briefing to the congressional defense committees on the planned use of authorities under section 1762 of title 10, United States Code, as amended by this section, to support the acquisition workforce.

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  35. ``(8) Rule of Construction.--Nothing in this subsection shall be construed to modify or supersede any performance management system established under chapter 43 of title 5, United States Code, or to alter any rights or obligations under applicable collective bargaining agreements.''. SEC. 855. EXTENSION AND MODIFICATION OF ACQUISITION WORKFORCE DEMONSTRATION PROJECT. (a) Increase in Limitation on Number of Participants.-- Section 1762 of title 10, United States Code, is amended by striking ``130,000'' and inserting ``143,000''. (b) Extension.--Subsection (g) of such section is amended by striking ``December 31, 2031'' and inserting ``December 31, 2035''.

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  36. ``(6) The Under Secretary of Defense for Acquisition and Sustainment shall periodically review and update the framework established under paragraph (2) to ensure alignment with the objectives of the defense acquisition system under section 3102 of this title and to adapt such framework to incorporate new acquisition practices and technologies. ``(7) In this subsection, the term `covered authorities' means the following: ``(A) Chapter 247 of this title. ``(B) Sections 4021 and 4022 of this title. ``(C) Section 3602 of this title. ``(D) Any other acquisition authority, pathway, or method established by the Secretary to enable the rapid, flexible, or iterative development and delivery of a capability.

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  37. ``(4) The Secretary may not solely rely on the completion of training requirements of an individual, or any certification or credential earned [[Page H4826]] by an individual, to satisfy the requirements of this subsection. ``(5) The Under Secretary of Defense for Acquisition and Sustainment, in coordination with each service acquisition executive and component acquisition executive, shall use the framework established under paragraph (2) to-- ``(A) identify gaps in demonstrated proficiency among individuals selected for, or serving in, critical acquisition positions; and ``(B) ensure that such individuals who do not demonstrate appropriate proficiency are provided targeted and structured professional development opportunities (including experiential learning, training, or other relevant opportunities) to address such gaps.

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  38. ``(2) The Under Secretary of Defense for Acquisition and Sustainment, in coordination with each service acquisition executive and component acquisition executive, shall establish and maintain a Department-wide framework for assessing demonstrated proficiency under this subsection, including methods for evaluating demonstrated proficiency in achieving the performance objectives described in paragraph (1), such as the use of covered authorities in programmatic or operational settings. ``(3) The Secretary shall ensure that the requirements established under this subsection are applied in a manner consistent with the acquisition workforce career field and responsibilities of the position.

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  39. Section 1731 of title 10, United States Code, is amended by adding at the end the following new subsection: ``(d) Demonstrated Proficiency Requirements.--(1) In addition to the requirements under section 1735 of this title, the Secretary of Defense shall require that individuals selected for, and individuals serving in, civilian critical acquisition positions demonstrate appropriate proficiency in achieving the key performance objectives established under section 1722b(d) of this title.

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  40. (c) Application to Members of the Armed Forces.--Not later than October 1, 2027, the Secretary of Defense, in coordination with the Under Secretary of Defense for Acquisition and Sustainment and the Under Secretary of Defense for Personnel and Readiness, shall submit to the congressional defense committees a report assessing the feasibility and advisability of applying the key performance objectives established under section 1722b(d) of title 10, United States Code (as added by this section), to members of the Armed Forces serving in the acquisition workforce (as defined in section 101 of such title), including recommendations on how such objectives could be appropriately adapted for such members. SEC. 854. DEMONSTRATED PROFICIENCY REQUIREMENTS FOR CRITICAL ACQUISITION POSITIONS.

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  41. ``(5) The KPOs implemented under paragraph (1) shall be integrated into-- ``(A) annual performance appraisals for civilian members of the acquisition workforce; ``(B) promotion, bonus, and assignment considerations for such members; and ``(C) requirements for certification, training, and continuing education under this chapter.''. (b) Repeal.--Section 826 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60) is repealed.

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  42. ``(4) The workforce behavioral objectives required under paragraph (2)(A) shall be designed to develop the critical skills and behaviors of civilian members of the acquisition workforce, including-- ``(A) the adoption of innovative acquisition authorities and approaches; ``(B) a preference for commercial products and commercial services and supporting market research of commercial or emerging technologies; ``(C) engagement with end users to incorporate feedback into acquisition decisions and acquisition program adjustments; ``(D) the ability to use iterative development cycles and inform program tradeoffs, including discontinuing or terminating the development of capabilities-- ``(i) that no longer align with approved capability requirements (as defined in section 3101 of this title) or priorities; or ``(ii) that are experiencing significant cost growth, performance or technical deficiencies, or delays in schedule; ``(E) the pursuit of professional development to broaden expertise and assume expanded responsibilities in cross- functional initiatives; and ``(F) the ability to overcome obstacles to prioritize end- user outcomes in acquisition execution.

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  43. ``(3) The strategic outcome objectives required under paragraph (2)(A) shall align with the objectives of the defense acquisition system established pursuant to section 3102 of this title and shall address strategic acquisition mission areas, including-- ``(A) expeditiously delivering capabilities to enhance the operational readiness of the armed forces and enable the missions of the Department of Defense; ``(B) enabling and supporting the integration of innovative solutions to enhance military effectiveness and responsiveness to emerging threats; ``(C) ensuring supply chain and industrial base resilience and surge capabilities to support contingency and operational plans of the Department of Defense; ``(D) cultivating a leadership and organizational culture in civilian members of the acquisition workforce that encourages responsible risk-taking, collaboration, and learning through failure; and ``(E) maintaining a current and proficient workforce through continuous education, including digital and artificial intelligence literacy and technical proficiency necessary for the job function of an individual.

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  44. ``(2) The KPOs implemented under paragraph (1) shall-- ``(A) include strategic outcome objectives and workforce behavioral objectives for the workforce; and ``(B) be developed in a manner that enables an assessment of the degree of alignment between-- ``(i) the objectives of the defense acquisition system established by section 3102 of this title; and ``(ii) the prudent and appropriate use by civilian members of the acquisition workforce of innovative, risk-tolerant practices in achieving those objectives.

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  45. (a) In General.--Section 1722b of title 10, United States Code, is amended-- (1) in subsection (b), by adding at the end the following new paragraph: ``(6) Key performance objectives described in subsection (d).''; and (2) by adding at the end the following new subsection: ``(d) Acquisition Workforce Key Performance Objectives.-- (1) Not later than 180 days after the date of the enactment of this subsection, the Secretary of Defense shall implement mandatory key performance objectives (in this subsection referred to as `KPOs') for evaluating the performance of civilian members of the acquisition workforce.

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  46. (d) Implementation.-- (1) Chief acquisition talent officer of the department of defense.--The Secretary of Defense shall implement section 1703 of title 10, United States Code, as added by subsection (a), not later than one year after the date of the enactment of this Act. (2) Service and component chief acquisition talent officers.--Each Secretary of a military department (as defined in section 101(a) of title 10, United States Code) and each head of a component of the Department of Defense described in subsection (a) of section 1703a of title 10, United States Code, as added by subsection (a), shall implement such section with respect to such military department or component, as applicable, not later than one year after the date of the enactment of this Act. SEC. 853. CODIFICATION OF ACQUISITION WORKFORCE KEY PERFORMANCE OBJECTIVES.

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  47. (c) Conforming Amendment.-- (1) Defense acquisition university.--Section 1746(e) of title 10, United States Code, is amended-- (A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (B) by inserting after paragraph (1) the following new paragraph: ``(2) The President of the Defense Acquisition University shall report directly to the Chief Acquisition Talent Officer of the Department of Defense.''. (2) Defense civilian and training corps.--Section 2200g of title 10, United States Code, is amended by adding at the end the following new subsection: ``(d) Administration.--The Chief Acquisition Talent Officer of the Department of Defense shall administer and oversee the Defense Civilian Training Corps program under the authority of the Under Secretary of Defense for Acquisition and Sustainment.''.

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  48. ``(d) Component Acquisition Executive Defined.--In this subsection, the term `component acquisition executive' means the acquisition executive of a component of the Department of Defense, including combatant commands and the Defense Logistics Agency, who is responsible for all acquisition functions of such component, except that such term does not include service acquisition executives.''. (b) Clerical Amendment.--The table of sections of subchapter I of chapter 87 of title 10, United States Code, is amended by inserting after the item relating to section 1702 the following new items: ``1703. Chief Acquisition Talent Officer of the Department of Defense. ``1703a. Service and Component Chief Acquisition Talent Officers.''.

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  49. ``(c) Duties.--A Service Chief Acquisition Talent Officer of a military department or Component Chief Acquisition Talent Officer of a component of the Department of Defense designated under subsection (a) shall, subject to the authority, direction, and control of the official to whom such Service Chief Acquisition Talent Officer or Component Chief Acquisition Talent Officer reports under subsection (b)-- ``(1) develop, submit to the Chief Acquisition Talent Officer of the Department of Defense, and implement each plan for the acquisition workforce of such military department or component required under section 1703(e) of this title in accordance with the guidance issued by the Chief Acquisition Talent Officer of the Department of Defense; ``(2) oversee the execution of workforce plans and talent management initiatives for the acquisition workforce of such military department or component in support of the Department-wide acquisition workforce strategy; [[Page H4825]] ``(3) advise the official to whom such Service Chief Acquisition Talent Officer or Component Chief Acquisition Talent Officer reports under subsection (b) on matters relating to the readiness of the acquisition workforce of such military department or component; ``(4) support the service acquisition executive, portfolio acquisition executive, or component acquisition executive in identifying and addressing acquisition workforce requirements necessary to execute acquisition programs and portfolios; ``(5) coordinate with the Chief Acquisition Talent Officer of the Department of Defense on Defense-wide initiatives and programs for the acquisition workforce, including implementation of the Department-wide acquisition workforce strategy; ``(6) support the alignment of education and training for members of the acquisition workforce of such military department or component to enable the alignment of-- ``(A) specific education and training for members of the acquisition workforce with general education and training requirements, including professional military education requirements for members of the armed forces; and ``(B) specific assignment and career development policies related to the civilian members of the acquisition workforce and the members of the acquisition workforce who are members of the armed forces; ``(7) establish hiring priorities and promote the effective use of hiring authorities for the acquisition workforce of such military department or component; ``(8) support the use of the authorities under section 1599g of this title and other mechanisms to strengthen the acquisition workforce of such military department or component through public-private talent exchanges; ``(9) provide to the Under Secretary of Defense for Acquisition and Sustainment data related to the acquisition workforce of such military department or component as required to support the Department-wide acquisition workforce data analytics capability and workforce planning; and ``(10) perform such other duties as determined appropriate by the official to whom such Service Chief Acquisition Talent Officer or Component Chief Acquisition Talent Officer reports under subsection (b).

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  50. ``(2) Components.--A Component Chief Acquisition Talent Officer of a component of the Department of Defense designated under subsection (a) shall report to the component acquisition executive of such component, except that if such Component Chief Acquisition Talent Officer is the component acquisition executive of such component, such officer shall report to the head of such component with respect to the duties of such Component Chief Acquisition Talent Officer under this section.

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