Mike D. Rogers
Representative for Alabama · Republican · United States
“(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…”
“(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…”
“(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…”
“(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…”
“(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…”
“(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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“``(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.”
“``(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.”
“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.”
“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.”
“``(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.”
“``(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.”
“``(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.”
“``(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.”
“[[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).”
“``(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.”
“``(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.”
“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.”
“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.”
“(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.”
“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)''.”
“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.”
“``(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.”
“``(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.”
“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.”
“``(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).''.”
“``(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.”
“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.”
“(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.”
“(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.''.”
“(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''.”
“(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)''.”
“(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''.”
“(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).''.”
“(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''.”
“(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''.”
“(2) Conforming amendments.-- (A) Title 10.--Title 10, United States Code, is amended-- (i) in section 3702(g), by striking ``Effective on October 1 of each year that is divisible by 5, each'' and inserting ``Each''; and (ii) in section 3742, by striking ``Effective on October 1 of each year that is divisible by five, the'' and inserting ``The''. (B) Title 41.--Section 3502(g) of title 41, United States Code, is amended by striking ``Effective on October 1 of each year that is divisible by 5, each'' and inserting ``Each''.”
“(3) The term ``national securities exchange'' means an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f). Subtitle B--Amendments to General Contracting Authorities, Procedures, and Limitations SEC. 821. MODIFICATION TO CERTAIN ACQUISITION THRESHOLDS. (a) Adjustment to Inflation.-- (1) In general.--Section 1908(c)(2) of title 41, United States Code, is amended by striking ``of each year evenly divisible by 5'' and inserting ``, 2028, and every 3 years thereafter''.”
“(d) Submission to Congressional Committees.--Not later than 60 days after the date on which the Inspector General of the Department of Defense receives the report required by subsection (c), the Inspector General shall submit to the congressional defense committees an unaltered copy of the report, along with any comments or recommendations that the Inspector General considers appropriate. (e) Definitions.--In this section: (1) The term ``defense audit agency'' means the Defense Contract Audit Agency and the Defense Contract Management Agency. (2) The term ``industry best practices'' means the best practices used to conduct audits, reviews, and surveillance of companies listed on a national securities exchange, in accordance with generally accepted auditing standards or national securities exchange requirements, as appropriate.”
“The report shall include-- (1) findings on the effectiveness of the defense audit agencies in conducting audits, reviews, and surveillance of defense contractors; (2) the comparison described in subsection (b)(1); (3) the comparison described in subsection (b)(2); (4) the assessment described in subsection (b)(3); and (5) Recommendations for improving the effectiveness of the defense audit agencies in conducting audits, reviews, and surveillance of defense contractors, including recommendations for-- (A) improving the training of the staff of the defense audit agencies who conduct such audits, reviews, and surveillance; (B) improving the accuracy and reliability of such audits, reviews, and surveillance; (C) ensuring the use of a materiality standard similar to the standard used in generally accepted auditing standards; (D) improving the processes used by the defense agencies to conduct such audits, reviews, and surveillance; (E) relieving the burdens on defense contractors of such audits, reviews, and surveillance without undermining the effectiveness and integrity of such audits, reviews, and surveillance; and (F) ensuring the effective implementation of such recommendations by the defense audit agencies and the effective monitoring of such implementation.”
“(2) A comparison of-- (A) the standards used by the defense audit agencies in connection with such audits, reviews, and surveillance, including the use of materiality standards; and (B) industry best practices for such standards. (3) The extent to which industry best practices are applicable and transferrable to the audits, reviews, and surveillance of defense contractors by the defense audit agencies. (c) Report.--Not later than one year after the date of the enactment of this Act, the entity contracted for the comprehensive review required by subsection (a) shall provide a report [[Page H4817]] on the results of the review to the Secretary of Defense and the Inspector General of the Department of Defense.”
“The purpose of the comprehensive review shall be to identify opportunities to improve the processes of the defense audit agencies for auditing, reviewing, and surveilling defense contractors, including to streamline the auditing, reviewing, and surveilling processes, ensure materiality of reviews, and generally improve the effectiveness of the audits, reviews, and surveillance activities of the defense audit agencies. (b) Elements.--The comprehensive review required by subsection (a) shall assess the following: (1) A comparison of-- (A) the processes used by the defense audit agencies to conduct audits, reviews, and surveillance of defense contractors; and (B) industry best practices for such processes.”
“SEC. 811. REVIEW OF DEFENSE AUDIT AGENCIES. (a) Review Required.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall seek to enter into a contract with an entity that conducts audits, reviews, or surveillance of companies listed on a national securities exchange, to conduct a comprehensive review of the standards, guidance, and policies of the defense audit agencies relating to audits, reviews, and surveillance of defense contractors.”
“(2) The percentage of local produce, seafood, and meat available, and projected percentage after two years of implementing such plan-- (A) in each commissary store located on a military installation located in the area of responsibility of the United States Indo-Pacific Command; (B) in each dining facility located on a military installation located in the area of responsibility of the United States Indo-Pacific Command; and (C) onboard a naval vessel located in the area of responsibility of the United States Indo-Pacific Command. (d) Local Defined.--In this section, the term ``local'' means, with respect to produce, seafood, or meat, that such produce, seafood, or meat is sourced from a partner or allied nation or a State or territory of the United States located in the area of responsibility of the United States Indo- Pacific Command.”
“Such plan will include a requirement, to the extent practicable, to procure local produce for commissary stores located in such area of responsibility. (b) Prohibition on Procurement of Foreign Produce or Meat.--Section 4862(g)(2)(A) of title 10, United States Code, is amended by inserting ``, produce, or meat'' after ``seafood''. (c) Report.--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 that include the following: (1) The plan required under subsection (a), including ways in which the plan would-- (A) support partner or allied nations that are experiencing economic coercion from China; and (B) provide fresher food in dining facilities or commissary stores described in such subsection.”
“``(2) The term `initial spare' means a repairable or consumable part for use in a major defense acquisition program during the initial period of service of such weapon system.''. SEC. 810. PROCUREMENT OF LOCAL PRODUCE, SEAFOOD, AND MEAT IN THE AREA OF RESPONSIBILITY OF THE UNITED STATES INDO-PACIFIC COMMAND. (a) Procurement for Certain Facilities in the Indo-Pacific Region.--Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall develop and implement a plan to be carried out by the Defense Commissary Agency and the Defense Logistics Agency to increase procurement of local produce, seafood, and meat for a dining facility or commissary store located on a military installation or onboard a naval vessel located in the area of responsibility of the United States Indo-Pacific Command.”
“Section 4274 of title 10, United States Code, is amended to read as follows: ``Sec. 4274. Procurement of initial spares ``(a) In General.--Before awarding a contract for a covered end item, the contracting officer for such covered end item shall determine, in writing, that sufficient amounts have been programmed and budgeted for the procurement of initial spares associated with the covered end item. ``(b) Definitions.-- ``(1) The term `covered end item' means an end item (as defined section 4863 of this title) for a major defense acquisition program to be procured after the Milestone C approval (as defined in section 4172 of this title) for such major defense acquisition program.”
“(2) Report.--Not later than 90 days after the date on which the Secretary and the organization enter into the agreement required by paragraph (1), the organization shall submit to the Secretary a report on the results of the activities carried out under paragraph (1). (3) Consideration of report.--In implementing the initial approach required by subsection (a) of such section 3843, and in defining the minimum requirements for contractor business systems under subsection (b) of such section, the Secretary shall take into account the report submitted under paragraph (2). (d) Repeal of Contractor Business Systems Improvement Program.--Section 893 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. note prec. 3841) is repealed. SEC. 809. PROCUREMENT OF INITIAL SPARES.”
“(c) Report on Implementing Approach and Defining Minimum Requirements.-- (1) Agreement.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall enter into an agreement with the acquisition research organization described in section 4142(a) of title 10, United States Code, requiring the organization to-- (A) document and evaluate commercial best practices and industry standards for each type of contractor business system, as described in subsection (b) of such section 3843; and (B) make recommendations for the approach required by subsection (a) of such section 3843.”
“For purposes of this paragraph, a reasonable possibility exists when the likelihood of an event occurring-- ``(A) is probable; or ``(B) is more than remote but less than likely.''. (b) Implementation.--The initial approach required by section 3843 of title 10, United States Code, as added by subsection (a), shall be implemented not later than December 1, 2027.”
“``(f) Definitions.--In this section: ``(1) The term `contractor business system' means an integrated set of internal controls, processes, procedures, personnel, and information capabilities that a contractor uses to plan, execute, monitor, and report on its performance of Government contracts in a manner that is accurate, consistent, auditable, and compliant with clear and specific business system requirements that are identified and made publicly available. ``(2) The term `material weakness' means a deficiency or combination of deficiencies in the internal control over information in contractor business systems, such that there is a reasonable possibility that a material misstatement of such information will not be prevented, or detected and corrected, on a timely basis.”
“``(e) Guidance and Training.--The approach implemented under subsection (a) shall provide guidance and training to appropriate Government officials on the approach, the requirements and limitations in subsection (c) that apply to companies that are subject to the securities laws, the data that is produced by contractor business systems, and the manner in which such data should be used to effectively manage Department programs.”
“``(d) Corrective Actions and Remedies.--The approach implemented under subsection (a) shall ensure the following: ``(1) If the Secretary determines under subsection (c) that a contractor business system has a material weakness, appropriate officials of the Department will be available to work with the contractor to develop a corrective action plan defining specific actions to be taken to address the material weakness and a schedule for the implementation of such actions. ``(2) The Secretary may pursue any other remedies that may be available under the contract or under any other applicable law and regulation.”
“``(3) Notwithstanding paragraph (2), the Secretary may establish a profit-based exemption for cases in which the contractor is a company that is subject to the securities laws. Under the exemption, the contractor business system of such a contractor may be exempt from further review by the Secretary if the level of profit of the contractor, taking into account all contracts of the contractor with the Department, is below a threshold level established by the Secretary.”
“7262(b)), and certified documentation from such registered public accounting firm reflects-- ``(A) the unqualified opinion of such firm with respect to the contractor business system, such documentation shall eliminate the need for further review of the contractor business system by the Secretary; ``(B) a qualified opinion of such firm with respect to the contractor business system, the Secretary shall review only those aspects of the contractor business system as to which the opinion was qualified rather than unqualified; and ``(C) an adverse opinion of such firm with respect to the contractor business system, the Secretary shall take action under paragraph (1) or (2), or both, of subsection (d).”
“``(2) In a case in which the contractor is a company that is subject to the securities laws, if a registered public accounting firm attests to the internal control assessment of the contractor, pursuant to section 404(b) of the Sarbanes- Oxley Act of 2002 (15 U.S.C.”