← 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…

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(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…

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(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…

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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 76 of 99.

  1. (b) Implementation of Analytics Capability.-- (1) In general.--The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment, shall implement the capability required under paragraph (12) of section 1701a(b) of title 10, United States Code, as added by subsection (a), through the development and maintenance of a dashboard or a similar data analytics or visualization tool for such capability.

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  2. (a) Management for Acquisition Workforce Excellence.-- Section 1701a(b) of title 10, United States Code, is amended-- (1) in paragraph (10), by striking ``and'' at the end; (2) in paragraph (11), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new paragraph: ``(12) establish and maintain a Department-wide acquisition workforce data analytics capability to collect, integrate, and analyze data relating to the acquisition workforce in order to support workforce planning and effective performance management of the acquisition workforce, including by-- ``(A) integrating data from across the Department of Defense relating to the size, composition, skills, training, certifications, hiring, retention, experience, and performance of the acquisition workforce; ``(B) enabling the assessment of the capacity and capabilities of the acquisition workforce; ``(C) identifying trends, risks, and constraints, including current and projected workforce gaps, affecting workforce readiness and the ability of the acquisition workforce to achieve the objectives described in subparagraph (E); ``(D) informing decisions and resource allocation relating to the recruitment, hiring, development, training, credentialing, retention, and career progression of the acquisition workforce; and ``(E) ensuring that data and analytics generated by the capability support-- ``(i) the objectives of the defense acquisition system established pursuant to section 3102 of this title; and ``(ii) the key performance objectives for the acquisition workforce established under section 1722b(d) of this title.''.

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  3. (c) Definitions.--In this section: (1) The term ``covered contract'' means a contract or other agreement for-- (A) the construction or manufacture of a covered program or parts or components of a covered program; (B) the integration of mechanical and electrical systems associated with the power generation of such covered program; or (C) the operation or sustainment of a covered program, where such contract or other agreement is for the replacement of or improvements to components of a covered program. (2) The term ``covered program'' means an unmanned surface vessel acquired, leased, or operated under the Medium Unmanned Surface Vessel program of the Department of the Navy. Subtitle C--Provisions Relating to Acquisition Workforce Development SEC. 851. ACQUISITION WORKFORCE DATA ANALYTICS CAPABILITY.

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  4. (b) Certification.--The Secretary may enter into a covered contract with an offeror that does not provide the assurances described in subsection (a) if the Secretary submits to the Committees on Armed Services of the Senate and House of Representatives a certification that no [[Page H4823]] offeror that can provide such assurances is available to perform the contract.

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  5. (2) The term ``requirements document'' has the meaning provided in section 3104 of title 10, United States Code. SEC. 836. REQUIREMENTS FOR CERTAIN UNMANNED SURFACE VESSELS TO BE MANUFACTURED IN THE UNITED STATES. (a) In General.--Subject to subsection (b), on or after the date of the enactment of this section, the Secretary of the Navy prioritize offers for a covered contract where the offeror provides assurances that-- (1) the supply chain of the offeror for parts or components of a covered program are domestic sources; and (2) the manufacturing, assembling, and finishing of parts or components of a covered program occurs in the United States and is conducted by entities, the primary place of business of which is located in the United States.

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  6. (e) Termination.-- (1) In general.--A Pathfinder Program established under this section may be terminated at the discretion of the Secretary concerned, but shall not be terminated on a date prior to the day that is 24 months after the date of establishment of such Pathfinder Program. (2) Notification.--Not less than 60 days before the date on which the Secretary concerned prior terminates a Pathfinder Program, such Secretary shall provide to the congressional defense committees a notification of the intent to terminate along with an updated report including the elements described in subsection (d). (f) Definitions.--In this section: (1) The terms ``capability requirement'', ``operational problem'', and ``service chief'' have the meanings given, respectively, in section 3101 of title 10, United States Code.

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  7. (d) Report to Congress.--Not later than one year after the date of the enactment of this section, the Secretary of Defense, in coordination with each Secretary of a military department, shall submit to the congressional defense committees a report containing-- (1) barriers encountered the implementation of the Pathfinder Program; (2) lessons learned and recommendations developed through the implementation of the Pathfinder Program; and (3) recommended statutory, regulatory, or organizational changes needed to accelerate the delivery of capability requirements to address operational problems, and remove bureaucratic barriers in the requirements process.

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  8. (c) Evaluation and Lessons Learned.-- (1) In general.--Each Secretary of a military department carrying out a Pathfinder Program shall observe, document, and assess the execution of such Pathfinder Program, to enable the development of recommendations to improve-- (A) speed, clarity, and effectiveness in the prioritization of operation problems and the development of capability requirements statements; (B) alignment of requirements, acquisition, and budgeting; (C) integration of user feedback and operational insights; (D) effectiveness of engagement with private entity partners; and (E) alignment of requirements processes of military departments with and in support of the Joint Requirements Process.

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  9. (b) Establishment.--A Pathfinder Program established in accordance with (a) shall seek to-- (1) accelerate the delivery of capability requirements to address operational problems; (2) remove bureaucratic barriers in the requirements process; (3) provide operational users of required capabilities with an independent voice and direct role to ensure that capabilities meet the needs of such users; (4) apply data-based analytics for decision making related to requirements, acquisition, and budgeting; (5) enable a clear, unbroken linkage from strategic guidance to concepts to capabilities to budgeting; (6) drive design, development, and integration-- (A) to integrate processes across the military department concerned and with the joint force as required; (B) to balance the urgency of immediate needs with longer- term strategic investments; (C) to support the breadth of existing innovative technologies and major programs regardless of acquisitions pathway; and (D) to address all elements of doctrine, organization, training, materiel, leadership and education, personnel, facilities, and policy to deliver holistic solutions considering all such elements; and (7) align authorities to responsibilities in order to ensure that capability developers have the authority to execute and are held accountable for outcomes.

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  10. SEC. 835. ESTABLISHMENT OF PATHFINDER PROGRAMS TO INFORM REQUIREMENTS REFORM. (a) Requirement for Service-level Requirements Reform Pathfinder Programs.--Not later than 120 days after the date of the enactment of this section, each Secretary of a military department shall establish a program to be known as a ``Pathfinder Program'' to-- (1) inform and assist in efforts to reorient and reform the requirements process within such military department in accordance with (b); (2) support the service chief concerned in the development of capability requirement statements for equipping the armed force concerned that-- (A) describes the operational problem to provide necessary context for the capability requirement; (B) proposes nonprescriptive solutions to operational problems; and (C) ensures system interoperability, where appropriate, between and among joint military capabilities (as defined in section 181 of title 10, United States Code); and (3) develop and establish requirements-related processes of the military department concerned in a manner that supports, and is consistent with the Joint Force Requirements Process prescribed in the ``Manual for the Joint Requirements Oversight Council and the Joint Force Requirements Process'' (document number CJCSM 5123.01; dated January 15, 2026).

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  11. (e) Annual Report.--The Secretary of Defense shall include with the budget justification materials submitted to Congress in support of the budget of the Department of Defense for a fiscal year (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) a report on the activities carried out under the Account for such fiscal year, including-- (1) progress towards adoption of standards under subsection (b); (2) results from cross-portfolio experimentation, integration, and fielding activities conducted; (3) an assessment of software modernization efforts, frequency of updates, cybersecurity posture, and workforce readiness to support long-term sustainment of software- enabled capabilities; (4) an inventory of programs that have transitioned from the integration phase to the sustainment phase; and (5) identification of any statutory, regulatory, or budgetary barriers limiting rapid integration of autonomy- enabling software across unmanned platforms.

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  12. (d) Funding.--Activities under the Account shall be carried out using amounts authorized to be appropriated for fiscal year 2027 to Program Element 0604539D8Z on Line 115 of the account for ``Research, Development, Test, and Evaluation Defense-wide''.

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  13. Such standards shall include, at a minimum-- (1) the capability of unmanned systems within such portfolio to execute mission objectives autonomously within the domain of such systems, including in GPS-denied and communications-denied environments; (2) the capability of such systems to integrate autonomy- enabling software consistent with a modular open systems approach as defined in section 4401 of title 10, United States Code; (3) common autonomy interfaces, data standards, and safety and assurance criteria that permit the use of autonomy- enabling and other mission-critical software across multiple platforms and domains to the maximum extent practicable in alignment with existing government reference architectures; (4) establishment of an autonomy software baseline and a process for continuous integration, simulation and training, security testing, and deployment of autonomy-enabling software updates across systems within the portfolio; and (5) an acquisition preference for scalable commercial solutions, including licensing and service agreements to enable continuous improvement, training and simulation, and rapid deployment, that-- (A) have been operationally validated in real-world deployments to conflict zones; and (B) have achieved a Technology Readiness Level of 7 or above.

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  14. (c) Standards.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Director of the Defense Autonomous Warfare Group and each Secretary of a military department, shall establish standards for autonomous mission execution capabilities for any portfolio acquisition executive who leads an unmanned system portfolio.

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  15. (a) In General.--There is established in the Department of Defense a program to be known as the ``Autonomy Integration Account'' (in this section referred to as the ``Account'') under which the Secretary of Defense shall seek to accelerate the resourcing and integration of autonomous mission execution capabilities into systems of the Department to enable the operational availability of such systems. (b) Elements.--Activities carried out under the Account shall primarily emphasize the procurement, research and development, training and simulation, integration, and continuous modernization of applicable software capabilities for navigation, targeting, communications, mission autonomy, battle management, and other mission-critical software- defined functions that enable autonomous mission execution.

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  16. (d) General Limitations.-- (1) New programs of record.--A portfolio acquisition executive that transfers amounts pursuant to this section may not use such amounts to initiate a program of record without approval from the appropriate milestone decision authority. (2) Fund availability.--Amounts transferred pursuant to this section shall be subject to the same period of availability as the Procurement appropriation to which they are transferred. (e) Exclusion From General Transfer Authority.--Amounts transferred pursuant to this section shall not be included in the dollar limitation of section 1001 of this Act. SEC. 834. PORTFOLIO-BASED ACQUISITION OF AUTONOMOUS CAPABILITY.

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  17. (2) Contents.--Each notification required under paragraph (1) with respect to a transfer of amounts under subsection (a) shall include-- (A) the amount to be transferred; (B) an identification of the program, project, or activity that is the proposed source of the Research, Development, Test, and Evaluation amount and an identification of the program, project, or activity that is the proposed recipient Procurement account; (C) a description of the capability proposed for procurement using such transfer amounts [[Page H4822]] and the validated technology readiness level of such capability; (D) the written determination required by paragraph (3); and (E) an assessment of the benefits or risks anticipated as a result of the transfer of such amounts on the programs, projects, and activities assigned under the leadership of the portfolio acquisition executive concerned.

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  18. (c) Notification.-- (1) In general.--Not later than 15 days before transferring amounts under subsection (a), the portfolio acquisition executive making such transfer shall submit a written notification of such transfer to-- (A) the congressional defense committees; (B) the Under Secretary of Defense for Acquisition and Sustainment; (C) the Under Secretary of Defense for Research and Engineering; and (D) the Under Secretary of Defense (Comptroller).

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  19. (b) Transfer Criteria.--A portfolio acquisition executive may transfer amounts under subsection (a) only if-- (1) the capability proposed for procurement using such transfer amounts was developed under a transaction or other agreement entered into under section 4021 or 4022 of title 10, United States Code; (2) such proposed capability has achieved a technology readiness level of 8, as validated by the milestone decision authority (as defined in section 4211 of title 10, United States Code) or an independent technical authority designated by the Secretary of Defense; and (3) the portfolio acquisition executive determines in writing that procurement of such proposed capability is necessary to address an operational problem or fulfill a capability requirement (as such terms are defined, respectively, in section 3101 of title 10, United States Code) in a timely and cost-effective manner.

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  20. (2) Limitations on amounts transferred.--The transfer of an amount made in accordance with paragraph (1), with respect to amounts authorized for Research, Development, Test, and Evaluation-- (A) shall not exceed 10 percent of the amount authorized for a fiscal year for Research, Development, Test, and Evaluation for all programs, projects, or activities in the portfolio of such portfolio acquisition executive; and (B) may only be transferred to a corresponding Procurement program, project, or activity within the same portfolio.

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  21. 4811 note) is amended-- (1) by redesignating paragraph (3) as paragraph (4); and (2) by inserting after paragraph (2) the following new paragraph: ``(3) From sources described in paragraphs (1) and (2) that produce such strategic and critical materials by extracting such materials from electronic waste.''. SEC. 833. TRANSFER AUTHORITY FOR RAPID TRANSITION OF OTHER TRANSACTION AUTHORITY PROTOTYPES. (a) Authority.-- (1) In general.--Subject to limitations in paragraph (2), a portfolio acquisition executive may transfer amounts of authorizations made available for programs, projects, or activities that are included in the portfolio assigned under the leadership of such portfolio acquisition executive in accordance with section 1732 of title 10, United States Code.

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  22. 2022) is amended-- (1) in the section heading, by striking ``briefings, certification, and limitation on availability of funds'' and inserting ``briefings and certification''; (2) by striking subsections (a) and (d) and redesignating subsections (b) and (c) as subsections (a) and (b), respectively; and (3) in each of subsections (a) and (b), as so redesignated, by striking ``30 days after the date of the enactment of this Act'' and inserting ``30 days after the date on which the Secretary awards a contract for financial management services for fuel contracts''. SEC. 832. PREFERENCE FOR RECYCLED STRATEGIC AND CRITICAL MATERIALS. Section 848(a) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C.

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  23. 3301) is amended-- (1) by redesignating subsection (g) as subsection (i); and (2) by inserting after subsection (f) the following new subsections: ``(g) Report.--Not later than March 15, 2029, the Secretary shall provide a report to the congressional defense committees on the implementation of the pilot program, describing the use of the authority under this section and any lessons learned, along with a recommendation on whether to make the authority under this section permanent. ``(h) Sunset.--The authority under this section shall terminate on December 31, 2030.''. SEC. 831. EXTENSION OF BRIEFING AND CERTIFICATION REQUIREMENT. Section 886 of the National Defense Authorization Act for Fiscal Year 2025 (Public Law 118-159; 138 Stat.

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  24. (2) Technical and conforming amendment.--The table of sections for chapter 23 of title 41, United States Code, is amended by adding at the end the following new section: ``2314. Authority to acquire consumption-based solutions.''. (c) Modification of Pilot Program for Anything-as-a- service.--Section 809 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. note prec.

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  25. ``(c) Funding.--Amounts authorized to be appropriated for acquisitions using the authority under subsection (a) may be used to enter into incrementally funded contracts or other agreements, including advanced payments. ``(d) Consumption-based Solution Defined.--In this section, the term `consumption-based solution' means a model under which a service is provided to an executive agency and may use any combination of software, hardware or equipment, data, and labor or services that provides a capability that is metered and billed based on actual usage at fixed-price units. ``(e) Rule of Construction.--Nothing in this section may be construed to prohibit the use of the authority created under subsection (a) in combination with another contract type provided for under the Federal Acquisition Regulation.''.

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  26. ``(b) Procurement Requirements.--Not later than 180 days after the date of the enactment of this section, the Federal Acquisition Regulation shall be updated as necessary to create a new subcategory of services that-- ``(1) is any combination of hardware, equipment, software, labor, or services that together provides a seamless capability; ``(2) has the ability to be metered and billed based on actual usage; ``(3) has predetermined pricing at fixed-price units; ``(4) requires the awardee to notify the agency contracting officer when consumption under the contract reaches 75 percent and 90 percent of the funded amount, respectively, of the contract; and ``(5) treats any modification of a contract entered into under the authority established in subsection (a) to add a new feature or capability in an amount less than or equal to 25 percent of the total value of such contract, as originally awarded, as procurements made using competitive procedures (as defined in section 152) for the purposes of chapter 33 of this title.

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  27. (b) Authority to Acquire Consumption-based Solutions.-- (1) Amendment.--Chapter 23 of title 41, United States Code, is amended by adding at the end the following new section: ``Sec. 2314. Authority to acquire consumption-based solutions ``(a) Authority.--The head of each executive agency may acquire services through consumption-based solutions.

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  28. SEC. 830. CONSUMPTION-BASED PROCUREMENTS AND ASSOCIATED PAYMENTS. (a) Advance Payments Related to Certain Services.--Section 3324(d) of title 31, United States Code, is amended-- (1) in paragraph (1)(C), by striking ``; and'' and inserting a semicolon; (2) in paragraph (2)-- (A) by inserting ``or commercially available content'' after ``publication''; and (B) by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new paragraph: ``(3) charges for information and communications technology subscriptions, reservations, or tenancy, including cloud environments, for which the procuring agency defines appropriate access and security standards.''.

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  29. 637(d)(6)).''; and (C) by amending paragraph (3) to read as follows: ``(3) A contractor described in paragraph (4) shall annually submit to the Secretary of Defense a report on the number and dollar amount of first-tier subcontracts awarded during the period covered by the report to covered small business concerns, set forth separately-- ``(A) by North American Industry Classification System code; ``(B) by major defense acquisition program (as defined in section 4201 of this title); ``(C) by military department; and ``(D) by prime contract, if-- ``(i) the prime contract is for the maintenance, overhaul, repair, servicing, rehabilitation, salvage, modernization, or modification of supplies, systems, equipment; and ``(ii) the total value of the prime contract (including options) is greater than $100,000,000.''; (5) by amending subsection (d)(2) to read as follows: ``(2) The Secretary of Defense shall report to the Committee on Armed Services and the Committee on Small Business of the House of Representatives and the Committee on Armed Services and the Committee on Small Business and Entrepreneurship of the Senate on any negotiated comprehensive subcontracting plan that the Secretary determines did not meet the subcontracting goals negotiated in the plan for the prior fiscal year and whether the contractor made a good faith effort regarding compliance.''; (6) by striking subsections (e) and (f); and (7) by redesignating subsection (g) as subsection (e).

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  30. The Secretary''; (4) in subsection (b)-- (A) in paragraph (1)-- (i) by striking ``In a demonstration project under the test program, the'' and inserting ``The''; and (ii) by inserting at the end the following: ``The Secretary shall ensure procedures and systems accurately capture and report-- ``(A) the annual goals for each subcontracting plan; ``(B) subcontract awards including number, dollar amount and percentages of subcontracting value and total contract value; and ``(C) the findings of good faith efforts.''; (B) in paragraph (2)-- (i) in subparagraph (A), by striking ``and'' at the end; (ii) in subparagraph (B), by striking the period at the end and inserting ``; and''; and (iii) by adding at the end the following: ``(C) shall comply with the requirements included in section 8(d)(6) of the Small Business Act (15 U.S.C.

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  31. (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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  32. 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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  33. (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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  34. 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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  35. (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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  36. ``(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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  37. (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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  38. ``(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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  39. (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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  40. (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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  41. ``(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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  42. 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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  43. ``(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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  44. 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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  45. ``(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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  46. (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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  47. (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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  48. (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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  49. (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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  50. ``(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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