SEC. 801. REQUIREMENTS RELATING TO CORE DEPOT-LEVEL MAINTE-NANCE AND REPAIR CAPABILITIES FOR MILESTONE A AND MILESTONE B AND ELIMINATION OF REFERENCES TO KEY DECISION POINTS A AND B.
(a) ADDITIONALMILESTONE AREQUIREMENTS.—
(1) ADDITIONAL ITEMS OF CERTIFICATION.—Subsection (a) of section 2366a of title 10, United States Code, is amended—
(A) in paragraph (2), by striking ‘‘core competency’’
and inserting ‘‘function’’;
(B) by redesignating paragraphs (4) and (5) as para-graphs (6) and (7), respectively;
(C) by inserting after paragraph (3) the following new paragraph (4):
‘‘(4) that a determination of applicability of core depot- level maintenance and repair capabilities requirements has been made;’’; and
(D) in paragraph (6) (as so redesignated), by striking
‘‘develop and procure’’ and inserting ‘‘develop, procure, and sustain’’.
(2) DEFINITION.—Subsection (c) of such section is amended by adding at the end the following new paragraph:
‘‘(7) The term ‘core depot-level maintenance and repair capabilities’’ means the core depot-level maintenance and repair capabilities identified under section 2464(a) of this title.’’.
(b) ADDITIONALMILESTONEB REQUIREMENTS.—
(1) ADDITIONAL ITEM OF CERTIFICATION.—Subsection (a)(3) of section 2366b of title 10, United States Code, is amended—
(A) by redesignating subparagraph (E) as subpara-graph (G);
(B) by striking ‘‘and’’ at the end of subparagraph (D);
and
(C) by inserting after subparagraph (D) the following new subparagraphs:
‘‘(E) life-cycle sustainment planning, including corro-sion prevention and mitigation planning, has identified and evaluated relevant sustainment costs throughout development, production, operation, sustainment, and dis-posal of the program, and any alternatives, and that such costs are reasonable and have been accurately estimated;
‘‘(F) an estimate has been made of the requirements for core depot-level maintenance and repair capabilities, as well as the associated logistics capabilities and the asso-ciated sustaining workloads required to support such requirements; and’’.
(2) DEFINITION.—Subsection (g) of such section is amended by striking paragraph (5) (relating to Key Decision Point B) and inserting the following new paragraph (5):
‘‘(5) The term ‘core logistics capabilities’ means the core logistics capabilities identified under section 2464(a) of this title.’’.
(c) REQUIREMENTS PRIOR TO LOW-RATE INITIAL PRODUCTION.—
Prior to entering into a contract for low-rate initial production of a major defense acquisition program, the Secretary of Defense shall ensure that the detailed requirements for core depot-level maintenance and repair capabilities, as well as the associated logis-tics capabilities and the associated sustaining workloads required to support such requirements, have been defined.
(d) GUIDANCE.—Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance implementing the amendments made by subsections (a) and (b), and subsection (c), in a manner that is consistent across the Depart-ment of Defense.
(e) ELIMINATION OF REFERENCES TO KEY DECISION POINTS A
ANDB.—
(1) AMENDMENTS TO SECTION2366a.—Section 2366a of title 10, United States Code, is amended—
(A) in the section heading, by striking ‘‘or Key Deci-sion Point’’;
(B) in subsection (a), in the matter preceding paragraph (1), by striking ‘‘, or Key Decision Point A approval in the case of a space program,’’ and by striking ‘‘, or Key Decision Point B approval in the case of a space program,’’;
and
(C) in subsection (b)—
(i) in paragraph (1), by striking ‘‘(or Key Decision Point A approval in the case of a space program)’’;
and
(ii) in paragraph (2)(C)(ii), by striking ‘‘, or Key Decision Point A approval in the case of a space pro-gram,’’.
(2) AMENDMENTS TO SECTION2366b.—Section 2366b of such title is amended—
(A) in the section heading, by striking ‘‘or Key Deci-sion Point B’’;
(B) in subsection (a), in the matter preceding paragraph (1), by striking ‘‘, or Key Decision Point B approval in the case of a space program,’’; and
(C) in subsections (b)(2) and (d)(1), by striking ‘‘(or Key Decision Point B approval in the case of a space program)’’ each place it appears.
(3) AMENDMENTS TO TABLE OF SECTIONS.—The items relating to sections 2366a and 2366b in the table of sections at the beginning of chapter 139 of such title are amended to read as follows:
‘‘2366a. Major defense acquisition programs: certification required before Milestone A approval.
‘‘2366b. Major defense acquisition programs: certification required before Milestone B approval.’’.
(4) ADDITIONAL CONFORMING AMENDMENTS.—Section 2433a(c)(1) of such title is amended by striking ‘‘, or Key Deci-sion Point approval in the case of a space program,’’ each place it appears in subparagraphs (B) and (C).
SEC. 802. REVISION TO LAW RELATING TO DISCLOSURES TO LITIGA-TION SUPPORT CONTRACTORS.
(a) INGENERAL.—
(1) REVISED AUTHORITY TO COVER DISCLOSURES UNDER LITIGATION SUPPORT CONTRACTS.—Chapter 3 of title 10, United States Code, is amended by inserting after section 129c the following new section:
‘‘§ 129d. Disclosure to litigation support contractors
‘‘(a) DISCLOSURE AUTHORITY.—An officer or employee of the Department of Defense may disclose sensitive information to a litigation support contractor if—
‘‘(1) the disclosure is for the sole purpose of providing litigation support to the Government in the form of administra-tive, technical, or professional services during or in anticipation of litigation; and
‘‘(2) under a contract with the Government, the litigation support contractor agrees to and acknowledges—
‘‘(A) that sensitive information furnished will be accessed and used only for the purposes stated in the relevant contract;
‘‘(B) that the contractor will take all precautions nec-essary to prevent disclosure of the sensitive information provided to the contractor;
‘‘(C) that such sensitive information provided to the contractor under the authority of this section shall not be used by the contractor to compete against a third party for Government or non-Government contracts; and
‘‘(D) that the violation of subparagraph (A), (B), or (C) is a basis for the Government to terminate the litigation support contract of the contractor.
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) The term ‘litigation support contractor’ means a tractor (including an expert or technical consultant) under con-tract with the Department of Defense to provide litigation support.
‘‘(2) The term ‘sensitive information’ means confidential commercial, financial, or proprietary information, technical data, or other privileged information.’’.
(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 129c the following new item:
‘‘129d. Disclosure to litigation support contractors.’’.
(b) REPEAL OF SUPERSEDED PROVISIONS ENACTED IN PUBLIC
LAW111–383.—Section 2320 of such title is amended—
(1) in subsection (c)(2)—
(A) by striking ‘‘subsection (a)’’ and all that follows through ‘‘a covered Government’’ and inserting ‘‘subsection (a), allowing a covered Government’’; and
(B) by striking subparagraph (B); and (2) by striking subsection (g).
SEC. 803. EXTENSION OF APPLICABILITY OF THE SENIOR EXECUTIVE BENCHMARK COMPENSATION AMOUNT FOR PURPOSES OF ALLOWABLE COST LIMITATIONS UNDER DEFENSE CON-TRACTS.
(a) CERTAIN COMPENSATION NOT ALLOWABLE UNDER DEFENSE
CONTRACTS.—Subsection (e)(1)(P) of section 2324 of title 10, United States Code, is amended—
(1) by striking ‘‘senior executives of contractors’’ and inserting ‘‘any contractor employee’’; and
(2) by adding before the period at the end the following:
‘‘, except that the Secretary of Defense may establish one or more narrowly targeted exceptions for scientists and engineers upon a determination that such exceptions are needed to ensure that the Department of Defense has continued access to needed skills and capabilities’’.
(b) CONFORMING AMENDMENT.—Subsection (l) of such section is amended by striking paragraph (5).
(c) EFFECTIVEDATE.—The amendments made by this section—
(1) shall be implemented in the Federal Acquisition Regula-tion within 180 days after the date of the enactment of this Act; and
(2) shall apply with respect to costs of compensation incurred after January 1, 2012, under contracts entered into before, on, or after the date of the enactment of this Act.
SEC. 804. EXTENSION OF AVAILABILITY OF FUNDS IN THE DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND.
(a) AVAILABILITY.—Paragraph (6) of section 1705(e) of title 10, United States Code, is amended to read as follows:
‘‘(6) DURATION OF AVAILABILITY.—Amounts credited to the Fund in accordance with subsection (d)(2), transferred to the Fund pursuant to subsection (d)(3), appropriated to the Fund, or deposited to the Fund shall remain available for obligation in the fiscal year for which credited, transferred, appropriated, or deposited and the two succeeding fiscal years.’’.
(b) EFFECTIVE DATE.—Paragraph (6) of such section, as amended by subsection (a), shall not apply to funds directly appro-priated to the Fund before the date of the enactment of this Act.
SEC. 805. DEFENSE CONTRACT AUDIT AGENCY ANNUAL REPORT.
(a) DEFENSE CONTRACT AUDIT AGENCY ANNUAL REPORT.—
Chapter 137 of title 10, United States Code, is amended by inserting after section 2313 the following new section:
‘‘§ 2313a. Defense Contract Audit Agency: annual report
‘‘(a) REQUIRED REPORT.—The Director of the Defense Contract Audit Agency shall prepare an annual report of the activities of the Agency during the previous fiscal year. The report shall include, at a minimum—
‘‘(1) a description of significant problems, abuses, and defi-ciencies encountered during the conduct of contractor audits;
‘‘(2) statistical tables showing—
‘‘(A) the total number of audit reports completed and pending;
‘‘(B) the priority given to each type of audit;
‘‘(C) the length of time taken for each type of audit;
‘‘(D) the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs); and
‘‘(E) an assessment of the number and types of audits pending for a period longer than allowed pursuant to guid-ance of the Defense Contract Audit Agency;
‘‘(3) a summary of any recommendations of actions or resources needed to improve the audit process; and
‘‘(4) any other matters the Director considers appropriate.
‘‘(b) SUBMISSION OF ANNUAL REPORT.—Not later than March 30 of each year, the Director shall submit to the congressional defense committees the report required by subsection (a).
‘‘(c) PUBLIC AVAILABILITY.—Not later than 60 days after the submission of an annual report to the congressional defense commit-tees under subsection (b), the Director shall make the report avail-able on the publicly availavail-able website of the Agency or such other publicly available website as the Director considers appropriate.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-ning of such chapter is amended by inserting after the item relating to section 2313 the following new item:
‘‘2313a. Defense Contract Audit Agency: annual report.’’.
SEC. 806. INCLUSION OF DATA ON CONTRACTOR PERFORMANCE IN PAST PERFORMANCE DATABASES FOR SOURCE SELEC-TION DECISIONS.
(a) STRATEGY ON INCLUSION REQUIRED.—Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall develop a strategy for ensuring that timely, accurate, and complete informa-tion on contractor performance is included in past performance databases used for making source selection decisions.
(b) ELEMENTS.—The strategy required by subsection (a) shall, at a minimum—
(1) establish standards for the timeliness and completeness of past performance submissions for purposes of databases described in subsection (a);
(2) assign responsibility and management accountability for the completeness of past performance submissions for such purposes; and
(3) ensure that past performance submissions for such pur-poses are consistent with award fee evaluations in cases where such evaluations have been conducted.
(c) CONTRACTOR COMMENTS.—Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall revise the Defense Supplement to the Federal Acquisition Regulation to require the following:
(1) That affected contractors are provided, in a timely manner, information on contractor performance to be included in past performance databases in accordance with subsection (a).
(2) That such contractors are afforded up to 14 calendar days, from the date of delivery of the information provided in accordance with paragraph (1), to submit comments, rebuttals, or additional information pertaining to past perform-ance for inclusion in such databases.
(3) That agency evaluations of contractor past performance, including any information submitted under paragraph (2), are included in the relevant past performance database not later than the date that is 14 days after the date of delivery of the information provided in accordance with paragraph (1).
(d) CONSTRUCTION.—Nothing in this section shall be construed to prohibit a contractor from submitting comments, rebuttals, or additional information pertaining to past performance after the period described in paragraph (2) has elapsed or to prohibit a contractor from challenging a past performance evaluation in accordance with applicable laws, regulations, or procedures.
(e) COMPTROLLERGENERALREPORT.—Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the actions taken by the Under Secretary of Defense for Acquisition, Technology, and Logistics pursuant to this section, including an assessment of the extent to which such actions have achieved the objectives of this section.
SEC. 807. IMPLEMENTATION OF RECOMMENDATIONS OF DEFENSE SCIENCE BOARD TASK FORCE ON IMPROVEMENTS TO SERVICE CONTRACTING.
(a) PLAN FOR IMPLEMENTATION.—Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall, acting pursuant to the Under Secretary’s responsibility under section 2330 of title 10, United States Code, develop a plan for implementing the recommendations of the Defense Science Board Task Force on Improvements to Service Contracting.
(b) ELEMENTS.—The plan developed pursuant to subsection (a) shall include, to the extent determined appropriate by the Under Secretary for Acquisition, Technology, and Logistics, the following:
(1) Meaningful incentives to services contractors for high performance at low cost, consistent with the objectives of the Better Buying Power Initiative established by the Under Sec-retary.
(2) Improved means of communication between the Govern-ment and the services contracting industry in the process of developing requirements for services contracts.
(3) Clear guidance for defense acquisition personnel on the use of appropriate contract types for particular categories of services contracts.
(4) Formal certification and training requirements for serv-ices acquisition personnel, consistent with the requirements of sections 1723 and 1724 of title 10, United States Code.
(5) Appropriate emphasis on the recruiting and training of services acquisition personnel, consistent with the strategic workforce plan developed pursuant to section 115b of title 10, United States Code, and the funds available through the Department of Defense Acquisition Workforce Development Fund established pursuant to section 1705 of title 10, United States Code.
(6) Policies and guidance on career development for services acquisition personnel, consistent with the requirements of sec-tions 1722a and 1722b of title 10, United States Code.
(7) Actions to ensure that the military departments dedi-cate portfolio-specific commodity managers to coordinate the procurement of key categories of contract services, as required by section 2330(b)(3)(C) of title 10, United States Code.
(8) Actions to ensure that the Department of Defense con-ducts realistic exercises and training that account for services contracting during contingency operations, as required by sec-tion 2333(e) of title 10, United States Code.
(c) COMPTROLLERGENERAL REPORT.—Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the following:
(1) The actions taken by the Under Secretary of Defense for Acquisition, Technology, and Logistics to carry out the requirements of this section.
(2) The actions taken by the Under Secretary to carry out the requirements of section 2330 of title 10, United States Code.
(3) The actions taken by the military departments to carry out the requirements of section 2330 of title 10, United States Code.
(4) The extent to which the actions described in paragraphs (1), (2), and (3) have resulted in the improved acquisition and management of contract services.
SEC. 808. TEMPORARY LIMITATION ON AGGREGATE ANNUAL AMOUNT AVAILABLE FOR CONTRACT SERVICES.
(a) LIMITATION.—Except as provided in subsection (b), the total amount obligated by the Department of Defense for contract services in fiscal year 2012 or 2013 may not exceed the total amount requested for the Department for contract services in the budget of the President for fiscal year 2010 (as submitted to Congress pursuant to section 1105(b) of title 31, United States Code) adjusted for net transfers from funding for overseas contingency operations.
(b) EXCEPTION.—Notwithstanding the limitation in subsection (a), the total amount obligated by the Department for contract services in fiscal year 2012 or 2013 may exceed the amount other-wise provided pursuant to subsection (a) by an amount elected by the Secretary of Defense that is not greater than the cost of any increase in such fiscal year in the number of civilian billets at the Department that has been approved by the Secretary over the number of such billets at the Department in fiscal year 2010.
(c) GUIDANCE.—Not later than 60 days after the date of the enactment of this Act, the Secretary shall issue guidance to the military departments and the Defense Agencies on implementation of this section during fiscal years 2012 and 2013. The guidance shall, at a minimum—
(1) establish a negotiation objective that labor rates and overhead rates in any contract or task order for contract serv-ices with an estimated value in excess of $10,000,000 awarded to a contractor in fiscal year 2012 or 2013 shall not exceed labor rates and overhead rates paid to the contractor for con-tract services in fiscal year 2010;
(2) require the Secretaries of the military departments and the heads of the Defense Agencies to approve in writing any contract or task order for contract services with an esti-mated value in excess of $10,000,000 awarded to a contractor in fiscal year 2012 or 2013 that provides for continuing services at an annual cost that exceeds the annual cost paid by the military department or Defense Agency concerned for the same or similar services in fiscal year 2010;
(3) require the Secretaries of the military departments and the heads of the Defense Agencies to eliminate any con-tractor positions identified by the military department or Defense Agency concerned as being responsible for the perform-ance of inherently governmental functions;
(4) require the Secretaries of the military departments and the heads of the Defense Agencies to reduce by 10 percent per fiscal year in each of fiscal years 2012 and 2013 the funding of the military department or Defense Agency concerned for—
(A) staff augmentation contracts; and
(B) contracts for the performance of functions closely associated with inherently governmental functions; and (5) assign responsibility to the management officials des-ignated pursuant to section 2330 of title 10, United States Code, and section 812(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3378;
10 U.S.C. 2330 note) to provide oversight and ensure the
implementation of the requirements of this section during fiscal years 2012 and 2013.
(d) DEFINITIONS.—In this section:
(1) The term ‘‘contract services’’ has the meaning given that term in section 235 of title 10, United States Code, except that the term does not include services that are funded out of amounts available for overseas contingency operations.
(2) The term ‘‘function closely associated with inherently governmental functions’’ has the meaning given that term in section 2383(b)(3) of title 10, United States Code.
(3) The term ‘‘staff augmentation contracts’’ means con-tracts for personnel who are subject to the direction of a govern-ment official other than the contracting officer for the contract, including, but not limited to, contractor personnel who perform personal services contracts (as that term is defined in section 2330a(g)(5) of title 10, United States Code).
(4) The term ‘‘transfers from funding for overseas contin-gency operations’’ means amounts funded out of amounts avail-able for overseas contingency operations in fiscal year 2010 that are funded out of amounts other than amounts so available in fiscal year 2012 or 2013.
SEC. 809. ANNUAL REPORT ON SINGLE-AWARD TASK AND DELIVERY ORDER CONTRACTS.
(a) ANNUALREPORT.—
(1) IN GENERAL.—Paragraph (2) of section 817(d) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2611; 10 U.S.C. 2306a note) is amended—
(A) in subparagraph (A), by striking ‘‘and’’ at the end;
(B) in subparagraph (B), by striking the period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new subpara-graph:
‘‘(C) with respect to any determination pursuant to section 2304a(d)(3)(D) of title 10, United States Code, that because of exceptional circumstances it is necessary in the public interest to award a task or delivery order contract with an estimated value in excess of $100,000,000 to a single source, an explanation of the basis for the determination.’’.
(2) CONFORMING AMENDMENT.—The heading of such section is amended by striking ‘‘WITHPRICE OR VALUE GREATER THAN
$15,000,000’’.
(b) REPEAL OF CASE-BY-CASE REPORTING REQUIREMENT .—Sec-tion 2304a(d)(3) of title 10, United States Code, is amended—
(1) by striking subparagraph (B);
(2) by striking ‘‘(A)’’;
(3) by redesignating clauses (i), (ii), (iii), and (iv) as sub-paragraphs (A), (B), (C), and (D), respectively; and
(4) in subparagraph (B), as redesignated by paragraph (3), by redesignating subclauses (I) and (II) as clauses (i) and (ii), respectively.