← LEADERSHIP TERMINAL

US CONGRESS · SITTING

Mike D. Rogers

Representative for Alabama · Republican · United States

IN THEIR OWN WORDS

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

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

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

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

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

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

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

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

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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…

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

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  1. ``(b) Minimum Requirements for Surveillance.--In establishing the minimum requirements for surveillance under subsection (a)(1) for each type of contractor business system, the Secretary shall ensure that such requirements do not exceed the minimum requirements that are necessary to conform with commercial best practices or industry standards, as applicable, for that type of system. ``(c) Surveillance and Review.--(1) Except as provided in paragraphs (2) and (3), in implementing the requirements of this section, the Secretary shall ensure that the frequency of review of a contractor business system shall be not more than once every three years, unless the standard surveillance activities under subsection (a)(2) indicate that the system has or may have a material weakness.

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  2. (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 contractor business systems that-- ``(1) minimizes the requirements for the surveillance of contractor business systems to only those that are necessary to conform with commercial best practices or industry standards, as applicable; ``(2) integrates the surveillance of contractor business systems into the Defense Contract Management Agency's standard surveillance [[Page H4816]] framework, and requires that any additional reviews be risk- based and informed by the results of those standard surveillance activities; and ``(3) allows a contractor to provide internal reports in connection with such standard surveillance activities and targeted reviews, and ensures that any such report is considered in the course of reviewing the contractor's business systems.

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  3. ``(b) Relation to Existing Contract Writing Systems and Acquisition Management Systems.--Notwithstanding subsection (a), the head of an executive agency other than the Department of Defense shall meet the requirements of subsection (a)(2) with respect to approved electronic contract writing systems if they were in compliance with the requirements established pursuant to section 862 of the National Defense Authorization Act for Fiscal Year 2013 (41 U.S.C. prec. 3101 note) on the date of enactment of this section until such time as those requirements are updated pursuant to subsection (a).''. (f) Repeal of Prior Related Provision.--Section 862 of the National Defense Authorization Act for Fiscal Year 2013 (41 U.S.C. 3101 note prec.) is repealed. SEC. 808. RISK-BASED APPROACH TO MONITORING CONTRACTOR BUSINESS SYSTEMS.

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  4. Requirements for electronic contract writing systems and acquisition management systems ``(a) The Administrator for Federal Procurement Policy, with respect to the executive agencies other than the Department of Defense, shall-- ``(1) establish or update, as necessary, uniform data standards, internal control requirements, independent verification and validation requirements, and business process rules for processing procurement requests, contracts, receipts, and invoices by the Department of Defense or other executive agencies, as applicable; ``(2) establish or update, as necessary, and maintain one or more approved electronic contract writing systems that conform with the standards, requirements, and rules established pursuant to paragraph (1); and ``(3) require the use of electronic contract writing systems approved in accordance with paragraph (2) for all contracts entered into by executive agencies other than the Department of Defense, as applicable.

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  5. (d) Applicability to Current Vendors.--For each system identified under paragraph (2)(A) that is a commercial product or commercial service as of the date on which the policy described in paragraph (1) is established, if the vendor of the system reasonably demonstrates that the system has the capability to meet a preponderance of the Department's requirements, the Secretary shall ensure that the vendor is given a reasonable opportunity to address any unmet requirements, as long as the unmet requirements can be delivered not later than the date that is 270 days after the date of the enactment of this Act and at no development cost to the Department. (e) Uniform Requirements for Certain Executive Agencies.-- Subchapter II of chapter 11 of title 41, United States Code, is amended by adding at the end the following new section: ``Sec. 1132.

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  6. (3) Matters included in strategy.--The strategy shall include-- (A) a description of the coordination necessary within and among the military departments, the Defense Agencies, and other elements of the Department to enable successful transition; (B) for each system identified under paragraph (2)(A) that is not in compliance with the policy described in paragraph (1), a timeline for transitioning from that system, including an estimate of anticipated reductions in deployment timelines for the system to reach full operating capability; (C) for each system identified under paragraph (2)(A), a strategy for hosting the system on a platform in compliance with the policy described in paragraph (1), including an evaluation of opportunities to leverage existing commercially available or commercial off-the-shelf products and services to reduce the Government's cost of maintaining infrastructure and associated sustainment costs; (D) a recommended approach to speed the adoption of secure artificial intelligence (``AI'') services for such systems, including how best to prioritize the adoption of commercially available or commercial off-the-shelf products and services with AI technology to help prevent the proliferation of redundant and disconnected AI tools; (E) an identification of funding, staffing, and resource requirements associated with implementation of such systems; (F) an identification of any challenges, barriers, or risks affecting implementation of such systems and recommended approaches to addressing or mitigating such challenges, barriers, or risks; and (G) a cost estimate associated with the transition from the current state to full implementation of the policy described in paragraph (1), including any cost savings associated with the reduction or elimination of continued use and development of systems that are not commercial products or commercial services.

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  7. (2) Assessment to inform strategy.--The strategy shall include, and be based on, an assessment of the current state, including-- (A) an inventory identifying each such system in use, in development, or in deployment within the Department; and (B) for each system identified under subparagraph (A)-- (i) an identification of the offices and officials responsible for the system; (ii) a cost benefit analysis, including an assessment of the criticality of the system and impact on the mission, and an identification of the system as a commercially available of-the-shelf item, an item developed by the Government, or a Government-off-the-shelf item, as applicable; and (iii) an identification of the annual spending on the system, from inception and estimated remaining cost to complete application baselines and expected annual support and maintenance costs once complete, broken down by-- (I) Government labor and expense; (II) contracted costs (such as the costs of software licenses and contractor support); and (III) costs associated with the current hosting approach on the current platform, including identification of the Government's cost of maintaining infrastructure and associated sustainment costs.

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  8. (b) Implementation.--The initial standards, requirements, and policies required by section 4755 of title 10, United States Code, as added by subsection (a), shall be established not later than 180 days after the date of the enactment of this Act. (c) Assessment and Phased Implementation Strategy.-- (1) Requirement for strategy.--Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report setting forth the strategy of the Secretary to transition the electronic contract writing systems and acquisition management systems of the Department of Defense to full implementation of the policy established as required by section 4755(2) of title 10, United States Code, as added by subsection (a).

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  9. Requirements for electronic contract writing systems and acquisition management systems ``The Secretary shall-- ``(1) establish, maintain, and make publicly available uniform data standards, internal control requirements, and independent verification and validation requirements for processing procurement requests, contracts, receipts, and invoices by the Department; and ``(2) establish policy to ensure that each electronic contract writing system and acquisition management system of the Department-- ``(A) substantially conforms with the standards, requirements, and rules established pursuant to paragraph (1); and ``(B) is a commercial product or commercial service, as required by section 3453 of this title, unless the head of the agency makes the determination required by section 3453(d) of this title regarding non-availability of commercial products or commercial services.''.

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  10. (b) Conforming Regulations.--Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation carry out the amendments made by this section. (c) Technical Amendment.--Section 3804 of title 10, United States Code, is amended by striking ``defense contract'' each place it appears and inserting ``contract''. SEC. 807. UNIFORM REQUIREMENTS FOR ELECTRONIC CONTRACT WRITING SYSTEMS AND ACQUISITION MANAGEMENT SYSTEMS. (a) Uniform Requirements for the Department of Defense.-- Chapter 367 of title 10, United States Code, is amended by inserting after section 4754 the following new section: ``Sec. 4755.

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  11. ``(B) The 60-day limitation in subparagraph (A) shall not apply if the service acquisition executive or portfolio acquisition executive, as applicable, determines such limitation would materially impair the ability of the Department to protect the interests of the Government interests or would create a material risk to the Department.''.''; and (2) by adding at the end the following new subsection: ``(d) Covered Condition Defined.--In this section, the term `covered condition' means any of the conditions listed in section 52.232-16(c) of the Federal Acquisition Regulation (or successor regulation).''.

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  12. ``(4)(A) Any suspension of progress payments under paragraph (3) shall last not more than 60 calendar days if-- ``(i) the prime contractor submits to the relevant contracting officer a written corrective action plan addressing the covered condition that was the basis for the suspension; ``(ii) the prime contractor initiates corrective action consistent with the submitted written plan within such 60-day period; and ``(iii) the service acquisition executive or portfolio acquisition executive, as applicable, after consultation with the head of the contracting activity and the relevant contracting officer, determines that both the corrective action plan and the initiated corrective action are sufficient to address the covered condition and meet the cost, schedule, performance, delivery, quality, readiness, sustainment, and financial-interest objectives of the Department.

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  13. ``(3) After finding substantial evidence that a covered condition applies for a contract, the Secretary of Defense may suspend a progress payment for such contract only if-- ``(A) the relevant contracting officer submits to the prime contractor for such contract a written statement of the substantial evidence that a [[Page H4815]] covered condition applies and provides the prime contractor ten calendar days to submit a written rebuttal; ``(B) the head of the contracting activity reviews such statement and any rebuttal and recommends the suspension of the progress payment for such contract; and ``(C) the service acquisition executive notifies the Committees on Armed Services of the House of Representatives and the Senate in writing of the suspension of progress payments for such contract and of the substantial evidence that a covered condition applies.

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  14. ``(c) Covered Contract Defined.--In this section, the term `covered contract' means a contract awarded using procedures other than competitive procedures under section 3204 of this title or pursuant to section 6.302 of the Federal Acquisition Regulation.''. SEC. 806. LIMITATION ON SUSPENSION OF PROGRESS PAYMENTS. (a) Conditions for Progress Payments.--Section 3804 of title 10, United States Code, is amended-- (1) in subsection (a)-- (A) in the subsection heading, by striking ``Commensurate With Work''; (B) by inserting ``(1)'' before ``The Secretary of Defense''; and (C) by adding at the end the following new paragraphs: ``(2) After finding substantial evidence that a covered condition applies for a contract, the Secretary of Defense may reduce a progress payment, increase the rate of liquidation, or both for such contract.

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  15. ``(b) Noncompliance.--With respect to an offeror who fails to submit the report required under this section, the Director of the Defense Contract Audit Agency or the relevant service acquisition executive shall include in the Federal Awardee Performance and Integrity Information System (or any successor system) the following information: ``(1) An identification of such offeror and the specific product or service to which such report should relate. ``(2) The National Stock Number of such product or service and the order quantity, unit cost, total cost, purchasing or reimbursing entity, and date of the order for such product or service.

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  16. Reporting of increases above specified prices ``(a) In General.--An offeror shall be required to submit to the relevant contracting officer a report, not later than 30 days after the offeror becomes aware that the price of a product or service under a covered contract reaches or exceeds an amount equal to-- ``(1) 25 percent more than the price specified in the covered contract bid; ``(2) 25 percent more than the price the Government paid for such product or service during the calendar year immediately preceding the date on which the covered contract is entered into; or ``(3) 50 percent more than the price the Government paid for such product or service at any time before the 5-year period preceding the date on which the covered contract is entered into.

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  17. Section 3706(c) of title 10, United States Code, is amended-- (1) in paragraph (3) by striking ``or'' at the end; (2) in paragraph (4) by striking the period and inserting ``; or''; and (3) by adding at the end the following: ``(5) updates to cost or pricing data submitted by the prime contractor or subcontractor after the date of agreement on the price of the contract (or price of the modification) or, if applicable and if consistent with subsection (a)(2), such other date agreed upon between the parties, were based on data that was more than 30 days old.''. SEC. 805. REPORTING OF PRICE INCREASES. Chapter 271 of title 10, United States Code, is amended by adding at the end the following new section: ``Sec. 3710.

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  18. Section 3452 of title 10, United States Code, is amended by adding at the end the following new subsection: ``(f) Limitations.--The Secretary of Defense may not-- ``(1) include in the lists required by subsections (b) and (c)(1) any contract clause that is substantially similar to a contract clause for commercial products or commercial services that is required by the Federal Acquisition Regulation or otherwise required by the Department of Defense Supplement to the Federal Acquisition Regulation; and ``(2) include in a contract for the procurement of commercial products or commercial services a contract clause from the Department of Defense Supplement to the Federal Acquisition Regulation or Federal Acquisition Regulation that is not included on such lists.''. SEC. 804. ELIMINATION OF LATE COST AND PRICING DATA SUBMISSION DEFENSE.

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  19. (c) Conforming Repeals.-- (1) Department of defense requirement.--Section 813 of the National Defense Authorization Act for Fiscal Year 2017 (10 U.S.C. note prec. 3241) is repealed. (2) Government-wide requirement.--Section 880 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (41 U.S.C. 3701 note) is repealed. SEC. 803. LIMITATION ON CERTAIN CONTRACT CLAUSES FOR COMMERCIAL PRODUCTS OR COMMERCIAL SERVICES.

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  20. ``(d) Definitions.--In this section: ``(1) Executive agency.--The term `executive agency' has the meaning given that term in section 102 of title 40, except that the term does not include the Department of Defense. ``(2) Contingency operation.--The term `contingency operation' has the meaning given that term in section 101 of title 10.''. (B) Clerical amendment.--The table of contents for such chapter is amended by inserting after the item relating to section 4714 the following new item: ``4715. Use of lowest price technically acceptable source selection process.''. (b) Ensuring Best Value in Procurement.--Section 152(3)(B) of title 41, United States Code, is amended by striking ``lowest overall cost alternative'' and inserting ``best value''.

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  21. ``(c) Avoidance of Use of Lowest Price Technically Acceptable Source Selection Criteria in Certain Procurements.--To the maximum extent practicable, the use of lowest price technically acceptable source selection criteria shall be avoided in the case of a procurement that is predominately for the acquisition of-- ``(1) information technology services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing, audit or audit readiness services, health care services and records, telecommunications devices and services, munitions response services, or other knowledge-based professional services; ``(2) personal protective equipment; or ``(3) knowledge-based training or logistics services in contingency operations or other operations outside the United States.

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  22. ``(b) Regulations.--The Federal Acquisition Regulatory Council shall ensure the Federal Acquisition Regulation requires that lowest price technically acceptable source selection criteria are used only in situations in which-- ``(1) an executive agency is able to comprehensively and clearly describe the minimum requirements expressed in terms of performance objectives, measures, and standards that will be used to determine acceptability of offers; ``(2) the executive agency would realize no, or minimal, value from a contract proposal exceeding the minimum technical or performance requirements set forth in the request for proposal; ``(3) the proposed technical approaches will require no, or minimal, subjective judgment by the source selection authority as to the desirability of one offeror's proposal versus a competing proposal; ``(4) the executive agency has a high degree of confidence that a review of technical proposals of offerors other than the lowest bidder would not result in the identification of factors that could provide value or benefit to the executive agency; ``(5) the contracting officer has included a justification for the use of a lowest price technically acceptable evaluation methodology in the contract file; and ``(6) the executive agency has determined that the lowest price reflects full life-cycle costs, including for operations and support.

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  23. (2) Title 41.-- (A) In general.--Chapter 47 of title 41, United States Code, is amended by inserting after section 4714 the following new section: ``Sec. 4715. Use of lowest price technically acceptable source selection process ``(a) Statement of Policy.--It shall be the policy of the United States Government to avoid using lowest price technically acceptable source selection criteria in circumstances that would deny the Government the benefits of cost and technical tradeoffs in the source selection process.

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  24. ``(c) Avoidance of Use of Lowest Price Technically Acceptable Source Selection Criteria in Certain Procurements.--To the maximum extent practicable, the use of lowest price technically acceptable source selection criteria shall be avoided in the case of a procurement that is predominately for the acquisition of-- ``(1) information technology services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing, audit or audit readiness services, or other knowledge-based professional services; ``(2) personal protective equipment; or ``(3) knowledge-based training or logistics services in contingency operations or other operations outside the United States.''.

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  25. ``(b) Regulations.--The Secretary of Defense shall ensure the Defense Federal Acquisition Regulation Supplement requires that lowest price technically acceptable source selection criteria are used only in situations in which-- ``(1) the Department of Defense is able to comprehensively and clearly describe the minimum requirements expressed in terms of performance objectives, measures, and standards that will be used to determine acceptability of offers; ``(2) the Department of Defense would realize no, or minimal, value from a contract proposal exceeding the minimum technical or performance requirements set forth in the request for proposal; ``(3) the proposed technical approaches will require no, or minimal, subjective judgment by the source selection authority as to the desirability of one offeror's proposal versus a competing proposal; ``(4) the source selection authority has a high degree of confidence that a review of technical proposals of offerors other than the lowest bidder would not result in the identification of factors that could provide value or benefit to the Department; ``(5) the contracting officer has included a justification for the use of a lowest price technically acceptable evaluation methodology in the contract file; ``(6) the Department of Defense has determined that the lowest price reflects full life-cycle costs, including for operations and support; ``(7) the Department of Defense would realize no, or minimal, additional innovation or future technological advantage by using a different methodology; and ``(8) with respect to a contract for procurement of goods, the goods procured are predominantly expendable in nature, nontechnical, or have a short life expectancy or short shelf life.

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  26. (a) Codification of Use of Lowest Price Technically Acceptable Source Selection Process.-- (1) Title 10.--Chapter 223 of title 10, United States Code, is amended by inserting after section 3243 the following new section: ``Sec. 3244. Use of lowest price technically acceptable source selection process ``(a) Statement of Policy.--It shall be the policy of the Department of Defense to avoid using lowest price technically acceptable source [[Page H4814]] selection criteria in circumstances that would deny the Department the benefits of cost and technical tradeoffs in the source selection process.

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  27. (2) Applicability.--The authorities provided by sections 3105a, 3105b, and 3105c of such title, as added by this section, shall apply on and after the date on which such guidance is issued, except as provided in paragraphs (3) and (4). (3) Reports.--The first report required by section 3105a of such title shall be submitted not later than one year after the date of the enactment of this Act. (4) Additional tailored metrics.--The first set of additional tailored metrics required by section 3105b of such title shall be submitted not later than 270 days after the date of the enactment of this Act. SEC. 802. ENSURING BEST VALUE IN PROCUREMENT.

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  28. ``(e) Limitations.--A designation under subsection (a) shall not-- ``(1) constitute a sole-source justification or otherwise relieve the contracting officer of the obligation to conduct full and open competition as required by applicable law, regulation, and policy; or ``(2) be used to evaluate the past performance of an offeror in a source selection under a defense acquisition program not assigned to the portfolio acquisition executive that made the designation, except with the prior written concurrence of the porfolio acquisition executive to whom the defense acquisition program is assigned.''. (b) Implementation.-- (1) Guidance.--The guidance required by section 3105a of title 10, United States Code, as added by this section, shall be issued not later than 180 days after the date of the enactment of this Act.

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  29. ``(d) Effect of Designation.--In any competitive source selection conducted under the defense acquisition programs assigned to a portfolio acquisition executive that has made a designation under subsection (a) that remains in effect, the contracting officer shall assign to any offeror with such a designation a past performance confidence rating of substantial confidence, except in a case in which the contracting officer determines, for specific documented reasons supported by specific performance data, to assign a lower past performance rating. In such a case, the contracting officer shall document in writing such determination, such reasons, and such data.

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  30. ``(2) A portfolio acquisition executive may revoke a designation under subsection (a) at any time upon a determination that the contractor no longer satisfies a requirement in subsection (a). The portfolio acquisition executive shall make the revocation in writing, ensure that it is documented in any contractor past performance database used by the Department, and report the revocation not later than 30 days after making the revocation to the Under Secretary of Defense for Acquisition and Sustainment and the component acquisition executive or service acquisition executive of the military department concerned, as applicable.

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  31. ``(b) Documentation.--The portfolio acquisition executive shall make a designation under subsection (a) in writing, ensure that it is documented in any contractor past performance database used by the Department, and report the designation not later than 30 days after making the designation to the Under Secretary of Defense for Acquisition and Sustainment and the component acquisition executive or service acquisition executive of the military department concerned, as applicable. ``(c) Duration; Revocation.--(1) Except as provided in paragraph (2), a designation under subsection (a) shall remain in effect for a period not to exceed three years from the date on which the designation is made, at which time a new designation under subsection (a) may be made if the requirements of subsection (a) are met.

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  32. Portfolio acquisition executives: authority to designate contractors for high performer preference ``(a) Authority to Designate.--Each portfolio acquisition executive shall, with respect to contractors under the defense acquisition programs assigned to such executive, have the authority to designate a contractor for the high performer preference for purposes of this section if the contractor-- ``(1) as documented in the contractor past performance database used by the Department of Defense, has received a rating of exceptional or very good for not fewer than three consecutive assessment periods under the defense acquisition programs assigned to such executive; and ``(2) has met or exceeded all key performance parameters applicable to such programs during such period.

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  33. ``(f) Relationship to Acquisition Workforce Performance Objectives.--(1) The Under Secretary of Defense for Acquisition and Sustainment shall ensure that the metrics and thresholds under this section-- ``(A) are distinct from, and shall be administered consistent with and separately from, the key performance objectives established under section 826 of the National Defense Authorization Act for Fiscal Year 2026 (10 U.S.C. 1722b note) for evaluating the performance of civilian members of the acquisition workforce; and ``(B) complement, and do not conflict with, the integration of such key performance objectives into performance management systems of the Department. ``(2) This section does not require the assessment of the individual performance of any member of the acquisition workforce. ``Sec. 3105c.

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  34. ``(d) Submission to Committees and Comptroller General.-- The Under Secretary of Defense for Acquisition and Sustainment shall submit any metrics and thresholds approved under subsection (c)(3)-- ``(1) to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives not later than 30 days after approving such metrics and thresholds; and ``(2) to the Comptroller General upon request. ``(e) Annual Review.--The Under Secretary of Defense for Acquisition and Sustainment shall review the framework under subsection (a) not less frequently than annually and shall update the framework as necessary to reflect changes in acquisition policy, program structure, or operational requirements.

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  35. ``(c) Additional Tailored Metrics.--Each portfolio acquisition executive shall-- ``(1) for each category established under subsection (b), develop additional metrics and thresholds tailored to the defense acquisition programs assigned to such portfolio acquisition executive; ``(2) submit such additional metrics and thresholds to the Under Secretary of Defense for Acquisition and Sustainment; and ``(3) upon approval of the Under Secretary of Defense for Acquisition and Sustainment, file such additional metrics and thresholds with the Office of the Under Secretary of Defense for Acquisition and Sustainment.

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  36. ``(4) Sustainment readiness.--Metrics relating to mission capable rate contribution, mean time between failures relative to contractual specifications, and materiel backorder rate. ``(5) Contract management.--Metrics relating to the assignment and distribution of ratings in the contractor past performance database used by the Department, rates of compliance with corrective action plans, and competitive re- compete rates. ``(6) Other categories.--Any other categories that the Under Secretary of Defense for Acquisition and Sustainment considers appropriate.

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  37. ``(b) Categories Required.--The framework required by subsection (a) shall include metrics in each of the following categories: ``(1) Cost performance.--Metrics relating to variance from the approved cost baseline, including estimate at completion versus budget at completion, undefinitized contract action definitization rate, and cost overrun recurrence. ``(2) Schedule performance.--Metrics relating to adherence to milestones, including delivery delays measured in days against the approved program baseline and frequency of approved re-baselining. ``(3) Technical performance.--Metrics relating to achievement of key performance parameters at applicable program milestones and deficiency closure rates.

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  38. The framework shall-- ``(1) specify metrics that must be used by each portfolio acquisition executive to assess each defense acquisition program assigned to such executive; ``(2) for each such metric, establish minimum thresholds for reporting; and ``(3) provide for consistency and comparability of contractor performance data across the Department while preserving the flexibility of each portfolio acquisition executive to tailor specific indicators and thresholds to the defense acquisition programs assigned to such executive.

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  39. Portfolio acquisition executives: defense-wide framework of contractor performance metrics ``(a) Framework Required.--The Under Secretary of Defense for Acquisition and Sustainment, in consultation with each component acquisition executive and service acquisition executive, shall establish a framework of contractor performance metrics to be used by all portfolio acquisition executives of the Department of Defense.

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  40. The report shall include-- ``(1) a consolidated list of all actions taken by a portfolio acquisition executive under paragraphs (1), (2), and (3) of subsection (a); ``(2) a consolidated list of all overrides and determinations by a component acquisition executive or service acquisition executive under subsection (b); and ``(3) an assessment of the effectiveness of the actions taken under paragraphs (1), (2), and (3) of subsection (a). ``Sec. 3105b.

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  41. ``(c) Limitation.--This section does not-- ``(1) authorize a portfolio acquisition executive to terminate a contract for cause without the approval of the component acquisition executive or service acquisition executive, as applicable; or ``(2) supersede any right of the contractor to notice and opportunity to respond under applicable provisions of law or regulation. ``(d) Guidance.--The Under Secretary of Defense for Acquisition and Sustainment shall issue guidance for the implementation of this section. ``(e) Annual Report.--On an annual basis, the Under Secretary of Defense for Acquisition and Sustainment, in consultation with each component acquisition executive and service acquisition executive, shall submit to the congressional defense committees a report on the exercise of authorities under this section.

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  42. The service acquisition executive shall act on such recommendation, or determine not to act on such recommendation, not later than 30 days after receiving the recommendation. ``(b) Responsibilities of Component Acquisition Executive or Service Acquisition Executive.--In a case in which the component acquisition executive or service acquisition executive, as applicable, overrides the issuance of a performance improvement notice under subsection (a)(1), overrides a contract restructuring action under subsection (a)(2), or determines not to act on a recommendation under subsection (a)(3), the component acquisition executive or service acquisition executive, as applicable, shall-- [[Page H4813]] ``(1) not later than 15 days after such override or determination, make a written documentation of the override or determination that cites the specific statutory, regulatory, or policy basis for the override or determination; and ``(2) provide a copy of such written documentation to the portfolio acquisition executive and the Under Secretary of Defense for Acquisition and Sustainment.

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  43. ``(2) To initiate a contract restructuring action, including an action to adjust a performance metric, milestone schedule, deliverable specification, or associated incentive fee structure, without the prior approval of the component acquisition executive or the service acquisition executive of the military department concerned, as long as the total value of the restructured contract does not exceed any applicable threshold. The portfolio acquisition executive shall provide written notification to the component acquisition executive or service acquisition executive, as applicable, not later than 15 days after initiating such an action. ``(3) To recommend to the component acquisition executive or the service acquisition executive of the military department concerned that a contract be terminated for cause.

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  44. Such a notice shall specify, with particularity, the deficiencies identified in such ratings and shall establish measurable corrective action benchmarks and a remediation period not to exceed 180 days. The portfolio acquisition executive shall ensure that the notice is provided contemporaneously to the contractor and the component acquisition executive or service acquisition executive of the military department concerned, as applicable, and is documented in any contractor past performance database used by the Department.

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  45. Portfolio acquisition executives: performance management authorities with respect to contractors ``(a) Performance Management Authorities.--Each portfolio acquisition executive shall, with respect to contractors under the defense acquisition programs assigned to such executive, have the following authorities: ``(1) To issue a performance improvement notice to any contractor that, as documented in any contractor past performance database used by the Department of Defense, has received a rating indicating a deficiency (such as marginal or unsatisfactory) in two or more consecutive assessment periods, or in three or more assessment periods within a period of five years.

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  46. (e) Definitions.--In this section: (1) The term ``covered Armed Forces'' means the Army, Navy, Air Force, Marine Corps, and Space Force. (2) The term ``toxic substances'' means any substance known to the Department of Defense to be toxic, hazardous, or otherwise cause negative health outcomes. TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS Subtitle A--Acquisition Policy and Management SEC. 801. RESPONSIBILITIES AND AUTHORITIES OF PORTFOLIO ACQUISITION EXECUTIVES WITH RESPECT TO CONTRACTORS. (a) In General.--Chapter 205 of title 10, United States Code, is amended by inserting after section 3105 the following new sections: ``Sec. 3105a.

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  47. (C) A description of current research programs within the Department of Defense examining the relationship between such exposures and reproductive health. (D) An evaluation of the extent to which members of the covered Armed Forces have access to fertility preservation services, assisted reproductive technology, and fertility services, and any gaps in access to such services, including with respect to members of the reserve components. (E) Recommendations regarding-- (i) improvements to screening and monitoring protocols for reproductive health outcomes related to toxic exposure; (ii) expanded access to reproductive health services and fertility treatments for members of the covered Armed Forces affected by toxic exposure; and (iii) legislative or regulatory actions to address reproductive health effects of such exposure.

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  48. (d) Report.-- (1) Initial report.--Not later than one year after the date of the enactment of this Act, the Secretary shall submit to the Committees on Armed Services of the House of Representatives and the Senate an interim report on the study under subsection (a), including any preliminary findings and recommendations. (2) Final report.--Not later than three years after the date of the enactment of this Act, the Secretary shall submit to the Committees on Armed Services of the House of Representatives and the Senate a report on the study under subsection (a), including the following: (A) Findings. (B) Identification of the categories of toxic substances most commonly associated with reproductive harm among members of the covered Armed Forces.

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  49. (5) The effects of exposure to toxic substances and other mechanisms on the sex of the children of such members. (6) The rates of infertility and reduced fertility among such members. (7) The rates of congenital disabilities and birth defects in the children of such members. (c) Consultation.--In conducting the study subsection (a), the Secretary shall consult with-- (1) the Surgeons General of the covered Armed Forces; (2) the Director of the Defense Health Agency; and (3) relevant academic institutions and federally funded research and development centers with expertise in fertility and reproductive health.

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  50. (a) Study.--The Secretary of Defense shall conduct a comprehensive, longitudinal study to assess the long-term effects of exposure to toxic substances on the reproductive health and fertility of members of the covered Armed Forces. (b) Elements.--The study under subsection (a) shall include the following: (1) The relationship between service in the covered Armed Forces and exposure to toxic substances. (2) The resultant effect of exposure to toxic substances on the reproductive health and fertility of covered members of the Armed Forces. (3) Whether certain career fields in the covered Armed Forces have a higher chance of damaging fertility. (4) The effects of exposure to toxic substances and other mechanism on the health of children of such members.

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