← 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…

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(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

The complete record

Every one of 4,912 lines we hold for Mike D. Rogers, in date order, each linked to its source. Free to read, in full, without an account. Page 28 of 99.

  1. (b) Amendments.--Section 4903 of title 10, United States Code, as so transferred and redesignated, is amended-- (1) by striking ``test'' each place it appears in headings and text; (2) by striking ``Test'' each place it appears in headings and text; (3) in subsection (a)(1), by striking ``shall establish'' and all that follows through ``demonstration projects, the Secretary'' and inserting [[Page H4821]] the following: ``shall maintain a program under which each service acquisition executive and each head of a Defense Agency may negotiate and administer comprehensive subcontracting plans.

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  2. CODIFICATION OF PROGRAM FOR NEGOTIATION OF COMPREHENSIVE SMALL BUSINESS SUBCONTRACTING PLANS. (a) In General.--Section 834 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is transferred to subchapter I of chapter 387 of title 10, United States Code, inserted after section 4902, and redesignated as section 4903.

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  3. (b) Clarification of Requirement That Mentor Firms Must Be For-profit Firms.--Subsection (d)(1) of such section is amended-- (1) by striking ``and'' at the end of subparagraph (A); (2) by redesignating subparagraph (B) as subparagraph (C); and (3) by inserting after subparagraph (A) the following new subparagraph (B): ``(B) is an entity organized for profit that operates primarily within the United States; and''. (c) Clarification of Term of Participation Agreement.-- Subsection (e)(1)(B) of such section is amended by inserting ``for the agreement'' after ``A program participation term''. (d) Clarification of Matters Relating to Reimbursement of Mentor Firms.--Subsection (e)(2) of such section is amended by striking ``may be'' and inserting ``may provide reimbursement through'' after ``may be''. SEC. 829.

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  4. Any such adjustment shall take effect on the date on which the Secretary publishes notice of such adjustment in the Federal Register.''. SEC. 828. CLARIFICATION OF CERTAIN ELEMENTS OF DEPARTMENT OF DEFENSE MENTOR-PROTEGE PROGRAM. (a) Clarification of Limitation on Protege Firms Participating in Concurrent Mentor-protege Agreements.-- Subsection (c)(2) of section 4902 of title 10, United States Code, is amended-- (1) by inserting ``under subsection (e)'' after ``one agreement''; and (2) by striking ``during the 5-year period beginning on the date such concern enters into the first such agreement'' and inserting ``after the completion of any previous such agreement''.

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  5. (c) Printed Circuit Boards.--Section 4873 of title 10, United States Code, is amended-- (1) by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; and (2) by inserting after subsection (b) the following new subsection: ``(c) Exception for Small Purchases.-- ``(1) Subsection (a)(1) does not apply to acquisitions in amounts not greater than $10,000. ``(2) A proposed acquisition of an item subject to subsection (a)(1) in an amount greater than $10,000 may not be divided into several purchases or contracts for lesser amounts in order to meet the exception under paragraph (1). ``(3) On October 1 of each year that is evenly divisible by five, the Secretary of Defense may adjust the dollar threshold in this subsection based on changes in the Consumer Price Index.

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  6. ``(C) On October 1 of each year that is evenly divisible by five, the Secretary of Defense may adjust the dollar threshold in this subsection based on changes in the Consumer Price Index. Any such adjustment shall take effect on the date on which the Secretary publishes notice of such adjustment in the Federal Register.''. (2) Coordination of amendments.--For purposes of applying amendments to section 4872 of title 10, United States Code, made by provisions of this Act other than this subsection, the amendments made by this subsection shall be treated as having been enacted immediately after any such amendments to such section 4872 by other provisions of this Act.

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  7. (b) Sensitive Materials From Non-allied Foreign Nations.-- (1) In general.--Section 4872(c) of title 10, United States Code, as amended by section 1803 of this Act, is further amended-- (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (B) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively; (C) by inserting ``(1)'' before ``Subsection (a)''; and (D) by adding at the end the following new paragraph: ``(2)(A) Subsection (a) does not apply to procurements in amounts not greater than $250,000. ``(B) A proposed procurement of a material or item subject to subsection (a) in an amount greater than $250,000 may not be divided into several purchases or contracts for lesser amounts in order to meet the exception under subsection (a).

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  8. ``(2) A proposed acquisition of an item subject to subsection (a) in an amount greater than $250,000 may not be divided into several purchases or contracts for lesser amounts in order to meet the exception under paragraph (1). ``(3) On October 1 of each year that is evenly divisible by five, the Secretary of Defense may adjust the dollar threshold in this subsection based on changes in the Consumer Price Index. Any such adjustment shall take effect on the date on which the Secretary publishes notice of such adjustment in the Federal Register.''.

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  9. (d) Current Defense Contractors.--Not later than 90 days after the date of the enactment of this Act, each contractor of the Department of Defense as of the date of the enactment of this Act that employs an individual convicted of a trafficking crime (as defined in section 4665 of title 10, United States Code, as added by subsection (a)) shall submit to Secretary of Defense a notice that contractor employs such an individual. SEC. 827. ACQUISITION THRESHOLDS FOR CERTAIN MATERIALS. (a) Strategic Materials.--Section 4863 of title 10, United States Code, is amended by amending subsection (f) to read as follows: ``(f) Exception for Small Purchases.--(1) Subsection (a) does not apply to acquisitions in amounts not greater than $250,000.

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  10. (b) Clerical Amendment.--The table of sections for chapter 363 of title 10, United States Code, is amended by adding at the end the following new item: ``4665. Prohibition on contracting with entities employing convicted traffickers.''. (c) Applicability.--Section 4665 of title 10, United States Code, as added by subsection (a), shall apply only with respect to contracts and other agreements entered into, renewed, or extended on or after the date of the enactment of this Act.

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  11. ``(b) Definitions.--In this section-- ``(1) the term `individual convicted of a trafficking crime' means an individual who has been convicted by a court of competent jurisdiction of a trafficking crime and for whom such conviction has not been overturned; and ``(2) the term `trafficking crime' means an offense-- ``(A) under chapter 77 of title 18, United States Code; or ``(B) under State, local, or tribal law consisting of conduct that would have been an offense under the chapter described in subparagraph (A) if the conduct had occurred within the special maritime and territorial jurisdiction of the United States (as defined in section 7 of title 18, United States Code), or in interstate or foreign commerce.''.

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  12. 4664 note) is amended to read as follows: ``(B) Determination described.--The determination described in this subparagraph is, with respect to a long-term concessions agreement, a determination that the retailer that is a party to such long-term concessions agreement is controlled by a covered nation based on an assessment required by paragraph (1).''. SEC. 826. PROHIBITION ON CONTRACTING WITH EMPLOYERS OF CONVICTED TRAFFICKERS. (a) In General.--Chapter 363 of title 10, United States Code, is amended by adding at the end the following new section: ``Sec. 4665. Prohibition on contracting with entities employing convicted traffickers. ``(a) In General.--The Secretary of Defense may not enter into a contract or other agreement with an entity if such entity employs an individual convicted of a trafficking crime.

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  13. ``(2) Not later than 30 days after each use of the waiver authority under paragraph (1), the Secretary shall provide to the Committees on Armed Services of the House of Representatives and Senate a justification for such waiver.''; (2) by striking subsection (c); (3) by redesignating subsection (d) as subsection (c); and (4) in subsection (a), by striking ``subsections (b) and (c)'' and inserting ``subsection (b)''. (b) Conforming Amendment.--Section 841(a)(2)(B) of the National Defense Authorization Act for Fiscal Year 2026 (10 U.S.C.

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  14. MODIFICATIONS TO REQUIREMENTS RELATING TO LONG-TERM CONCESSIONS AGREEMENTS WITH CERTAIN RETAILERS. (a) In General.--Section 4664 of title 10, United States Code, is amended-- (1) by amending subsection (b) to read as follows: ``(b) Waiver.--(1) The Secretary may waive the requirements of subsection (a) with respect to a long-term concessions agreement with a retailer if the Secretary determines that the goods or services to be provided by the retailer under such long-term concessions agreement are vital for the welfare and morale of members of the Armed Forces and no reasonable alternatives exist.

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  15. ``(2) The term `weapon system component'-- ``(A) means a high level subsystem or assembly, including hardware, software, or an integrated assembly of both, that can be mounted or installed on a major system platform through a external system interface (as defined in section 4401 of this title); and ``(B) includes a subsystem, assembly or, module that is likely to have additional capability requirements, is likely to change because of evolving technology or threat, is needed for interoperability, facilitates incremental deployment of capabilities, or is expected to be replaced by another subsystem or assembly described in subparagraph (A).''. (5) Section 804 of the National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 4401 note) is repealed. SEC. 825.

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  16. (3) Section 4403 of title 10, United States Code, is repealed. (4) Section 4425 of title 10, United States Code, is amended to read as follows: ``Sec. 4425. Definitions ``In this subchapter: ``(1) The term `major system platform' means the highest level structure of a major weapon system that is not physically mounted or installed onto a higher level structure and on which a major system component can be physically mounted or installed.

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  17. (2) Definitions.--Section 3775(b) of title 10, United States Code, is amended to read as follows: ``(b) Additional Definitions.--In this subchapter, the terms `external interface', `modular open system approach', and `module interface' have the meanings given, respectively, in section 4401 of this title.''. [[Page H4820]] (d) Conforming Amendments.-- (1) Section 3791(c)(1) of title 10, United States Code, is amended-- (A) in subparagraph (A), by striking ``section 4401(b) of this title'' and inserting ``section 4401 of this title''; and (B) in subparagraph (D)(iv), by striking ``modular system interfaces (as defined in section 4401(b) of this title)'' and inserting ``module interfaces (as defined in section 4401 of this title)''. (2) Section 4402 of title 10, United States Code, is repealed.

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  18. (c) Modification to Rights in Technical Data.-- (1) Rights in technical data.--Section 3771 of title 10, United States Code, is amended-- (A) in subsection (a)-- (i) in paragraph (2)(A), by striking `` or copyrights'' and inserting ``, copyrights, trade secrets,''; and (ii) by adding at the end the following new paragraph: ``(3) Enforcement of certain rights.--Regulations prescribed under paragraph (1) may not affect or limit any right described in paragraph (2)(A) or the ability of a contractor or subcontractor to enforce such a right against a third party that has not otherwise obtained a license for such a right from the United States or from the contractor or subcontractor.''; and (B) in subsection (b)-- (i) by amending paragraph (3) to read as follows: ``(3) Inapplicability of paragraph (2).--Unless otherwise negotiated, paragraph (2) does not apply to technical data that-- ``(A) constitutes a correction or change to data furnished by the United States; ``(B) relates to form, fit, or function (other than detailed manufacturing or process data); ``(C) is necessary for operation, maintenance, installation, or training (other than detailed manufacturing or process data, including such data pertaining to a major system component); or ``(D) is otherwise publicly available or has been released or disclosed by the contractor or subcontractor without restriction on further release or disclosure.''; (iii) by amending paragraph (4) to read as follows: ``(4) Exceptions to paragraph (2).--Notwithstanding paragraph (2), unless otherwise negotiated, the United States may release or disclose technical data to persons outside the Government, or permit the use of technical data by such persons, if-- ``(A) such release, disclosure, or use-- ``(i) is necessary for emergency repair and overhaul; or ``(ii) is a release or disclosure of technical data (other than detailed manufacturing or process data) to, or use of such data by, a foreign government, where such release or disclosure is in the interest of the United States and is required for evaluation or informational purposes; ``(B) such release, disclosure or use is made subject to a prohibition that the person to whom the data are released or disclosed may not further release, disclose, or use such data; and ``(C) the contractor or subcontractor asserting the restriction is notified of such release, disclosure, or use.''; (iv) in paragraph (6)-- (I) in the paragraph heading, by striking ``INTERFACES'' and inserting ``MODULE interfaces of an item''; (II) by inserting ``, in perpetuity,'' after ``government purpose rights''; and (III) by striking ``an interface between an item or process and other items or processes'' and inserting ``a module interface of an item''; and (v) in paragraph (7)-- (I) in the paragraph heading, by striking ``MODULAR system interfaces'' and inserting ``EXTERNAL interfaces of an item''; (II) in subparagraph (A)-- (aa) by striking ``paragraphs (2) and (5)'' and inserting ``paragraph (5) and except as otherwise provided by subsection (f) of section 4401 of this title,''; (bb) by inserting ``, in perpetuity,'' after ``government purpose rights''; and (cc) by striking ``modular system interface'' and inserting ``external interface of an item''; (III) in subparagraph (B), by striking ``modular system interface'' and inserting ``an external interface''; and (IV) in subparagraph (C), by striking ``modular system interface'' and inserting ``external interface of an item''.

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  19. (b) Applicability.-- (1) In general.--The requirements of section 4401 of title 10, United States Code, as amended by this section, shall apply with respect to a contract entered into on or after the date that is 180 days after the date of the enactment of this Act. (2) Guidance.--The Secretary of Defense shall issue guidance to carry out the requirements of section 4401 of title 10, United States Code, as amended by this section in order to implement this section.

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  20. ``(7) The term `open systems architecture' means an architecture composed of a set of modules loosely coupled with other modules via open, well-defined, and verifiable interfaces, thereby enabling modules to be incrementally added, removed, or replaced throughout the life cycle of the covered system by any qualified offeror (as determined by the Secretary), including independent third parties. ``(8) The term `software development kit' means a collection of software tools and programs such as libraries, application programming interfaces, integrated development environments, testing tools, or documentation used to create applications that are appropriate for a specific software platform.''.

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  21. ``(5) The term `module' means a self-contained discrete functional unit, such as hardware, software, or a combination thereof, in a discrete bundle-- ``(A) that can be developed, tested, and deployed independently of a module interface or external interface; and ``(B) that can simultaneously interact with another self- contained discrete functional unit described in subparagraph (A) through a module interface or external interface. ``(6) The term `module interface' means a shared boundary between modules in a covered system defined by physical, logical, or functional characteristics such as electrical, mechanical, fluidic, optical, radio frequency, data, networking, or software.

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  22. ``(3) The term `host platform' means the system or environment that provides the core infrastructure, interfaces, and shared services necessary to support, integrate, and operate modular components or subsystems, while enabling their independent development, upgrade, and replacement through standardized and open interfaces. ``(4) The term `modular open system approach' means an integrated strategy that-- ``(A) incorporates acquisition, business, technology, and logistics considerations; and ``(B) uses an open systems architecture to achieve one or more open systems objectives.

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  23. Such organization shall have demonstrated expertise in digital engineering environments, model-based systems engineering, and use of modular open system approaches. ``(h) Definitions.--In this section: ``(1) The term `covered system' means a system that is acquired or developed under-- ``(A) an acquisition program of the Department of Defense; or ``(B) a research and development program of the Department to address a capability requirement or joint capability requirement (as defined in section 181 of this title). ``(2) The term `external interface' means an interface between a covered system and other elements, such as another covered system or a host platform.

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  24. The Secretary shall ensure that-- ``(A) the repositories incorporate cybersecurity measures consistent with Department standards; ``(B) program managers, portfolio acquisition executives, and other appropriate officials of the Department of Defense have the necessary administrative control to manage assigned repositories and to establish procedures and requirements for content; and ``(C) the repositories are searchable and accessible to authorized persons according to level of security clearance. ``(2) Administration.--The Secretary of Defense shall designate a lead organization responsible for governance, life-cycle management, standards adjudication, and configuration control of repositories established under this subsection.

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  25. ``(g) Digital Repositories for Open Systems Architectures.-- ``(1) In general.--To support the creation, use, and reuse of modular open systems approaches, the Secretary shall establish a federated set of digital repositories within the Department of Defense to store open systems architectures and related artifacts for a covered system developed in accordance with this section.

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  26. ``(f) Applicability to Commercial Products.--In applying the requirements of this section to a procurement of a covered system that includes a commercial product, the Secretary of Defense shall-- ``(1) procure such commercial product under license terms similar to such terms that are customarily provided to the public, provided such commercial terms include or can be supplemented by the license rights necessary for designated open module interfaces or open external interfaces; ``(2) when applicable, obtain the delivery of commercial software development kits with license rights necessary to support the desired openness characteristics for the covered system; and ``(3) to the maximum extent practical, conduct negotiations for desired license rights in accordance with the preference for specially negotiated licenses in section 3774(c) of this title.

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  27. ``(e) Disclosure Required.--The Secretary of Defense shall make publicly available (to the maximum extent practicable consistent with national security requirements) any standards for implementation of modular open system approaches associated with contracts for covered systems as soon as feasible before the Secretary awards a contract to procure such a covered system, unless the applicable service acquisition executive submits to the Secretary a request to delay or restrict release of such standards, including a justification for such request.

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  28. ``(2) A description of the application of specifications, architectures, and standards for modularization and module interfaces and external interfaces, including open external interfaces with a host platform or other external system, to achieve such objectives. ``(3) A description of the minimum technical data package elements necessary to achieve such objectives. ``(4) The intended modularity and location of open interfaces. ``(5) The desired license rights in module interfaces or external interfaces based on such objectives, including desired license rights to enable the replacement of a module, module interface, or external interface with an alternative or new module or interface.

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  29. [[Page H4819]] ``(4) The open systems architecture described in this subsection shall be included in any draft and final solicitations for procurement of a covered system. ``(d) Openness Characteristics.--Consistent with the requirements of subchapter I of chapter 275 of this title, the Secretary shall include in any draft or final solicitation for the covered system a description of the desired openness characteristics of the covered system necessary to achieve the open systems objectives identified in accordance with subsection (b) for such covered system including the following: ``(1) A description of the open systems objectives identified in accordance with subsection (b).

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  30. ``(2) If a contractor develops a new interface standard or modifies an existing standard, and such new or modified standard is incorporated into an open systems architecture for a covered system, the Secretary shall ensure the new or modified standard is submitted to the repository required by subsection (g) and, if the Secretary determines such submission would support the open system objectives of the covered system, is made available to recognized standards bodies. ``(3) The Secretary shall ensure acquisition executives and program managers consider input from private entities as early as possible to inform decisions regarding the level in the open systems architecture at which a modular open system approach will be implemented for a covered system.

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  31. ``(c) Architecture Requirements.--(1) In developing an open systems architecture for the procurement of a covered system, the Secretary shall ensure that such architecture-- ``(A) adequately designates and defines for the covered system-- ``(i) modules; ``(ii) open external interfaces and open module interfaces to ensure loose coupling of modules within the covered system; ``(iii) open external interfaces, including external interfaces with a host platform or other external system, in a manner that supports interoperability; and ``(iv) the openness characteristics identified in subsection (d); ``(B) requires the exposure and full definition of open interfaces in a manner than is most suited to achieve the open systems objectives of the covered system through-- ``(i) if available and suitable to achieve the open system objectives, the use, reuse, modification, or adaption of existing open systems architectures, interface standards, or widely supported or consensus-based standards that are available at no cost or under fair and reasonable license terms; ``(ii) the use of commercial standards if such commercial standards are available under fair, reasonable, and non- discriminatory terms; ``(iii) the use of new standards that define relationships between module interfaces and external interfaces if such standards include-- ``(I) the software-defined syntax and properties that specifically govern how values are validly passed and received between modules of a covered system, and between the covered system and other covered systems or a host platform, in a machine-readable format; ``(II) a machine-readable definition that is compatible with Department-approved digital engineering environments and model-based systems engineering tools and defines the relationship between-- ``(aa) a module interface or external interface; and ``(bb) existing standards or interfaces that available in the repository required by subsection (g); and ``(III) documentation with functional descriptions of software-defined interfaces that conveys the semantic meaning of elements of a module interface or external interface; or ``(iv) any combination of clauses (i) through (iii); and ``(C) is designed and developed to accelerate the procurement and integration of commercial products as modules when suitable and appropriate.

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  32. Such assessment shall describe how a modular open system approach would-- ``(1) support the objectives of the defense acquisition system established pursuant to section 3102 of this title; ``(2) align with the preference for the acquisition of commercial products and commercial services in section 3453 of this title and preserve the commercial characteristics of modules that comprise the covered system; ``(3) reduce the complexity of, and increase the speed by which, new technologies can be integrated into a covered system to enhance military effectiveness and responsiveness to emerging threats; ``(4) enable the use of iterative development cycles and discontinue or terminate the development of capabilities-- ``(A) that no longer align with a capability requirement established by the Secretary of Defense; or ``(B) that are experiencing significant cost growth, technical or performance deficiencies, or delays in schedule; ``(5) seek to maintain a robust, resilient, and innovative defense industrial base to support requirements throughout the life cycle of the covered system; ``(6) reduce schedule delays and development timelines; ``(7) increase and enable interoperability of a covered system with the joint force as changes to force design evolve; ``(8) enhance supply chain risk management and mitigate industrial base production capacity risks by enabling the integration of alternative sources of supply or enabling augmented production of modules throughout the life cycle of the covered system; or ``(9) enable effective life-cycle management and product support of a covered system-- ``(A) in accordance with the requirements of section 4324 of this title; and ``(B) to achieve applicable operational readiness requirements and materiel readiness objectives (established under section 118(c) of this title) in the most cost- effective manner practicable.

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  33. Requirement for modular open system approach ``(a) Requirement.--The Secretary of Defense shall ensure that a covered system to be procured is designed and developed with a modular open system approach that is appropriately tailored to-- ``(1) the characteristics, intended purpose, and use of the covered system; ``(2) the planned service life of the covered system; and ``(3) any other factors relevant to the design and development of the covered system. ``(b) Assessment to Inform Strategy.--Before designing, developing, or making a modification to a covered system, the Secretary of Defense shall conduct an assessment to identify one or more open systems objectives to be achieved by the design and development of the covered system.

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  34. (5) Military construction authorization act for fiscal year 2026.--Section 2828 of the Military Construction Authorization Act for Fiscal Year 2026 (Public Law 119-60) is amended by striking ``section 4022(i)'' and inserting ``section 4022(j)''. SEC. 824. REQUIREMENT FOR MODULAR OPEN SYSTEM APPROACH AND MODIFICATIONS TO RIGHTS IN TECHNICAL DATA. (a) Requirement for Modular Open System Approach.--Section 4401 of title 10, United States Code, is amended to read as follows: ``Sec. 4401.

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  35. 391(d)) is amended by striking ``4022(e)'' and inserting ``4022(f)''. (3) John s. mccain national defense authorization act for fiscal year 2019.--Section 873(c)(1) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 U.S.C. 4021 note) is amended-- (A) in subparagraph (A), by striking ``subsection (f)'' and inserting ``subsection (g)''; and (B) in subparagraph (E), by striking ``or (f)'' and inserting ``or (g)''. (4) James m. inhofe national defense authorization act for fiscal year 2023.--Section 322(h)(2) of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (Public Law 117-263; 10 U.S.C. 2911 note) is amended by striking ``subsection (f)'' and inserting ``subsection (g)''.

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  36. 632)), including through teaming arrangements, joint ventures, or consortia; ``(2) the potential to reduce technical, schedule, or performance risk, or accelerate transition to production; or ``(3) fielding through use of non-Federal cost sharing.''. (b) Conforming Amendments.-- (1) National security act of 1947.--Section 102A(m)(6)(C) of the National Security Act of 1947 (50 U.S.C. 3024(m)(6)(C)) is amended-- (A) in clause (v), by striking ``of Defense''; (B) by repealing clause (vi); and (C) in clause (vii)-- (i) in the matter preceding subclause (I), by striking ``section 4022(f)(2)'' and inserting ``section 4022(g)(2)''; and (ii) in subclause (V)(cc), by striking ``section 4022(f)(5)'' and inserting ``section 4022(g)(5)''. (2) Homeland security act of 2002.--Section 831(d) of the Homeland Security Act of 2002 (6 U.S.C.

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  37. ``(4) The use of such transaction provides opportunity to expand or strengthen the defense industrial base in a manner that would not be practical or feasible under a contract.''; (3) by redesignating subsections (e) through (i) as subsections (f) through (j), respectively; and (4) by inserting after subsection (d) the following new subsection: ``(e) Additional Considerations.--The official responsible for entering into a transaction under this section shall consider other actions by an offeror relating to such transaction if such actions will increase value to the Government, or contribute positively to the expansion, diversification, or resilience of the defense industrial base, including-- ``(1) significant participation by one or more nontraditional defense contractors (as defined in section 3014 of this title) or small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C.

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  38. ``(2) The prototype project offered is an innovative or novel product, service, process, or business practice that is more practicable to acquire under such transaction than under a contract. ``(3) The use of such transaction is expected to accelerate delivery of capability to members of the armed forces compared with other procurement methods.

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  39. SEC. 823. AMENDMENT TO OTHER TRANSACTION AUTHORITY. (a) In General.--Section 4022 of title 10, United States Code, is amended-- (1) in subsection (a)(2)-- (A) in subparagraph (A), by striking ``agency that'' and all that follows through ``the use'' and inserting ``agency that the use''; (B) in subparagraph (B)(i), by striking ``writing that'' and all that follows through ``the use'' and inserting ``writing that the use''; and (C) in subparagraph (C), by striking ``subsection (f)'' each place it appears and inserting ``subsection (g)''; (2) by amending subsection (d) to read as follows: ``(d) Appropriate Use of Authority.--An official responsible for entering into a transaction under the authority of this section may use such authority upon determining any one of the following conditions: ``(1) The use of such transaction permits the Secretary to use innovative business arrangements or structures that would not be practical or feasible under a contract.

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  40. ``(C) In this paragraph-- ``(i) the term `consortium management organization' means an entity that is responsible for coordinating, administering, and supporting the activities of a consortium under an agreement described in subparagraph (A); ``(ii) the term `covered advance payment' means an advance payment made by the Department of Defense to a consortium management organization under an agreement described in subparagraph (A) for the purposes of such consortium management organization making payments to members of a consortium on behalf of the Department; ``(iii) the term `covered costs' means-- ``(I) the fees chargeable to the Government by a consortium management organization under an agreement described in subparagraph (A); and [[Page H4818]] ``(II) any other costs incurred by a consortium management organization that are directly attributable to the operation or the management of a consortium by a consortium management organization and chargeable to the Government under such agreement; and ``(iv) the term `held amounts' means funds provided as a covered advance payment that have not yet been used by the consortium management organization to which such covered advance payment was made to make a payment to a member of a consortium or returned to the Government in accordance with an agreement described in subparagraph (A).''.

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  41. ``(B) Interest on held amounts of a covered advance payment that is returned to the Department of Defense by a consortium management organization pursuant to subparagraph (A) shall be credited to the account from which such covered advance payment was made. Amounts so credited shall be merged with amounts in that account, and shall be available for the same purposes, and subject to the same conditions and limitations, as other amounts in that account.

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  42. Section 4021(c) of title 10, United States Code, is amended-- (1) by striking ``The authority'' and inserting ``(1) The authority''; and (2) by adding at the end the following new paragraph: ``(2)(A) A contracting officer or an authorized official with legal authority to enter into an agreement on behalf of the Department of Defense under this section may authorize a consortium management organization to retain the interest accruing on the held amounts of such consortium management organization as payment for any covered costs through an agreement that-- ``(i) authorizes such consortium management organization to make payments to members of a consortium, other than such consortium management organization, on behalf of the Department of Defense; and ``(ii) requires such consortium management organization to-- ``(I) invest such held amounts in Treasury bills of the Government; and ``(II) return to the Department any interest earned on such held amounts that exceeds such covered costs.

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  43. (6) Modifications to prior contracts.-- (A) Title 10.--Section 3702(f) of title 10, United States Code, is amended by striking ``2018'' and inserting ``2026''. (B) Title 41.--Section 3502(f) of title 41, United States Code, is amended by striking ``2018'' and inserting ``2027''. SEC. 822. USE OF ACCRUED INTEREST BY CERTAIN CONSORTIUM MANAGERS.

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  44. (5) Modifications to submissions of cost or pricing data; title 41.--Section 3502(a) of title 41, United States Code, is amended-- (A) in paragraph (1)-- (i) by striking ``2018'' each place it appears and inserting ``2027''; (ii) in subparagraph (A), by striking ``$2,000,000'' and inserting ``$10,000,000''; and (iii) in subparagraph (B), by striking ``$750,000'' and inserting ``$2,000,000''; (B) in paragraph (2)-- (i) in subparagraph (A), by striking ``$2,000,000;'' and inserting ``$10,000,000; and''; (ii) in subparagraph (B)-- (I) by striking ``prime contract that was entered into on or before June 30, 2018, and that has been modified pursuant to subsection (f),'' and inserting ``prime contract referred to in paragraph (1)(B),''; and (II) by striking ``$750,000; and'' and inserting ``$2,000,000.''; and (iii) by striking subparagraph (C); (C) in paragraph (3), by striking subparagraphs (A) through (C) and inserting the following new subparagraphs: ``(A) in the case of a prime contract entered into after June 30, 2027, the price of the subcontract is expected to exceed $10,000,000; and ``(B) in the case of a prime contract entered into on or before June 30, 2027, the price of the subcontract is expected to exceed $2,000,000.''; and (D) in paragraph (4), by striking ``if--'' and all that follows through the period at the end and inserting ``if the price adjustment is expected to exceed $2,000,000.''.

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  45. (4) Micro-purchase threshold.-- (A) Title 10.--Section 3573 of title 10, United States Code, is amended by striking ``$10,000'' and inserting ``the micro-purchase threshold specified in section 1902(a)(1) of title 41''. (B) Title 41.--Section 1902(a)(1) of title 41, United States Code, is amended by striking ``$10,000'' and inserting ``$25,000''.

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  46. (C) Conforming amendments.--Title 10, United States Code, is amended-- (i) in section 1724(a), by striking ``section 3205'' and inserting ``section 3571''; (ii) in section 3862(d), by striking paragraph (1); (iii) in section 4505(h), by striking paragraph (7); (iv) in section 4651(b), by striking ``(as defined in section 134 of title 41)''; (v) in section 4654(d), by striking ``(as defined in section 134 of title 41)''; (vi) in section 4655(c), by striking ``(as defined in section 134 of title 41)''; (vii) in section 4656(a)(4)(A), by striking ``(as defined in section 134 of title 41)''; (viii) in section 4659(b), by striking ``(as defined in section 134 of title 41)''; and (ix) in section 4753(b)(3), by striking ``(as defined in section 134 of title 41)''.

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  47. (B) Title 41.--Title 41, United States Code, is amended-- (i) in section 134, by striking ``$250,000'' and inserting ``$500,000''; and (ii) in section 153(1), by striking ``outside the United States''.

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  48. (3) Simplified acquisition threshold.-- (A) Title 10.--Section 3571 of title 10, United States Code, is amended-- (i) in subsection (a), by striking ``For'' and inserting ``Except as provided in subsection (b), for''; (ii) by redesignating subsection (b) as subsection (c); and (iii) by inserting after subsection (a) the following new subsection: ``(b) Contingency Operations; Humanitarian or Peacekeeping Operations.--For purposes of acquisitions by agencies named in section 3063 of this title, in the case of any contract to be awarded and performed, or purchase to be made, in support of a contingency operation or a humanitarian or peacekeeping operation, the simplified acquisition threshold means an amount equal to two times the amount specified for that term in subsection (a).''.

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  49. (B) Title 41.--Title 41, United States Code, is amended-- (i) in section 1901(a)(2), by striking ``$5,000,000'' and inserting ``$10,000,000''; and (ii) in section 3305(a)(2), by striking ``$5,000,000'' and inserting ``$10,000,000''.

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  50. (b) Adjustments to Certain Acquisition Thresholds.-- (1) Major program; title 41.--Section 109 of title 41, United States Code, is amended-- (A) in subsection (b)(1)-- (i) by striking ``$75,000,000 (based on fiscal year 1980 constant dollars)'' and inserting ``$275,000,000''; and (ii) by striking ``$300,000,000 (based on fiscal year 1980 constant dollars)'' and inserting ``$1,300,000,000''; and (B) in subsection (b)(2), by striking ``$750,000 (based on fiscal year 1980 constant dollars)'' and inserting ``$2,000,000''. (2) Simplified procedures for small purchases.-- (A) Title 10.--Section 3205(a)(2) of title 10, United States Code, is amended by striking ``$5,000,000'' and inserting ``$10,000,000''.

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