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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Legislative Provisions Not Adopted

House Conference Report. 115-874

Sections of Senate and House Bills Not Adapted

The Senate amendment contained a provision (sec. 819) that would require the Comptroller General of the United States to submit a report, no later than 180 days after the date of the enactment of this Act, to the congressional defense committees on the results of an analysis of the effects of current financing levels of defense contracts on defense contractors and Defense budgets.

The House bill contained no similar provision.

The Senate recedes.

The conferees direct the Comptroller General of the United States to submit to the congressional defense committees, no later than 180 days after the date of enactment of this Act, a report on the results of an analysis of the effects of current financing levels of Department of Defense contracts on contractors of the Department and the budgets of the Department to include an analysis and assessment of the impact to government and business on the relationship between financing amounts and contractor profit and the willingness of contractors to pursue contracts with the Department. The assessment should take into consideration past changes to progress payment rates and conditions as well as progress payment rates and limitations on progressing for undefinitized contract actions.

(1) IN GENERAL.—The report required by subsection (a) shall include an analysis and assessment of the impact of the matters specified in paragraph (2), for both government and business, on—

(A) the relationship between financing amounts and contractor profit; and

(B) the willingness of contractors to pursue contracts with the Department.

(2) COVERED MATTERS.—The matters specified in this paragraph are each of the following under Department contracts:

(A) Past changes to progress payment rates and conditions.

(B) Progress payment rates and limitations on progressing for undefinitized contract actions.

The House bill contained a provision (sec. 821) that would amend section 2323a of title 10, United States Code, to create a contract goal for the AbilityOne program of 1.5 percent. This section would also require the Secretary of Defense to submit an annual report to the U.S. AbilityOne Commission on progress made toward achieving said contract goal.

The Senate amendment contained no similar provision.

The House recedes.

The conferees note that the AbilityOne program must have policies and procedures in place to ensure that funding is used in a way that maximizes the benefits to the people it is intended to serve and that taxpayer funds are not wasted. Recognizing this, in 2015 the Congress directed the establishment of an AbilityOne Inspector General, and in 2016 Congress directed the establishment of a Panel on Department of Defense, and AbilityOne Contracting, Oversight, Accountability, and Integrity. The conferees note that both the Inspector General and the Panel are generating findings and recommendations for needed reforms and expect the AbilityOne Commission to take appropriate steps in the future to increase transparency and effectiveness of the program.

(a) Contract Goal For The AbilityOne Program.—Chapter 137 of title 10, United States Code, is amended by inserting after section 2323a the following new section:

Ҥ 2323b. Contract goal for the AbilityOne program

“(a) Goal.—The Secretary of Defense shall establish a goal for each fiscal year for the procurement of products and services from the procurement list established pursuant to section 8503 of title 41 of an amount equal to 1.5 percent of the total amount of funds obligated for contracts entered into with the Department of Defense in such fiscal year for procurement.

“(b) Annual Report.—At the conclusion of each fiscal year, the Secretary of Defense shall submit to the Committee for Purchase From People Who Are Blind or Severely Disabled (established under section 8502 of title 41) a report on the progress toward attaining the goal established under subsection (a) with respect to such fiscal year. The report shall include—

“(1) if the goal was not achieved, a plan to achieve the goal in the next fiscal year; and

“(2) if the goal was achieved, a strategy to exceed the goal in the next fiscal year.”.

(b) Clerical Amendment.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2323a the following new item:

“2323b. Contract goal for the AbilityOne program.”.

The Senate amendment contained a provision (sec. 822) that would express the sense of Congress that the Department of Defense should award contracts to responsible companies that primarily employ United States workers or are partners in the national technology and industrial base and do not actively transfer United States jobs to potential adversaries.

The House bill contained no similar provision.

The Senate recedes.

The conferees note that the Department of Defense should award contracts to responsible companies that primarily employ United States workers or are partners in the national technology and industrial base and do not actively transfer United States jobs to potential adversaries.

It is the sense of Congress that the Department of Defense should award contracts to responsible companies that primarily employ United States workers or are partners in the national technology and industrial base and do not actively transfer United States jobs to potential adversaries.

The House bill contained a provision (sec. 823) that would amend chapter 137 of title 10, United States Code, by adding a new section that would authorize the head of an agency, in awarding a contract for the procurement of goods and services for the Department of Defense, to establish a preference for offerors that employ veterans on a full-time basis, with criteria for use of such preference determined by the Secretary of Defense.

The Senate amendment contained no similar provision.

The House recedes.

(a) In General.—Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section:

Ҥ 2339a. Preference for offerors employing veterans

“(a) Preference.—In awarding a contract for the procurement of goods or services for the Department of Defense, the head of an agency may establish a preference for offerors that employ veterans on a full-time basis. The Secretary of Defense shall determine the criteria for use of such preference.

“(b) Congressional Notification.—Prior to establishing the preference described in subsection (a), the Secretary of Defense shall provide a briefing to the Committee on Armed Services of the House of Representatives on—

“(1) a plan for implementing such preference, including—

“(A) penalties for an offeror that willfully and intentionally misrepresents the veteran status of the employees of the offeror in a bid submitted under subsection (a); and

“(B) reporting on use of such preference; and

“(2) the process for assessing and verifying offeror compliance with regulations relating to equal opportunity for veterans requirements.”.

(b) Clerical Amendment.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2339 the following new item:

“2339a. Preference for offerors employing veterans.”.

The House bill contained a provision (sec. 826) that would amend section 2410n of title 10, United States Code. This section would create a requirement for conducting market research before purchasing a product listed in the Federal Prison Industries (FPI) catalog.

The Senate amendment contained no similar provision.

The House recedes.

(a) Competition Requirements For Purchases From Federal Prison Industries.—Subsections (a) and (b) of section 2410n of title 10, United States Code, are amended to read as follows:

“(a) Market Research.—Before purchasing a product listed in the latest edition of the Federal Prison Industries catalog published under section 4124(d) of title 18, the Secretary of Defense shall conduct market research to determine whether such product—

“(1) is comparable to products available from the private sector; and

“(2) best meets the needs of the Department of Defense in terms of price, quality, and time of delivery.

“(b) Competition Requirement.—If the Secretary determines that a Federal Prison Industries product is not comparable to products available from the private sector and does not best meet the needs of the Department of Defense in terms of price, quality, or time of delivery pursuant to subsection (a), the Secretary shall use competitive procedures or make an individual purchase under a multiple award contract for the procurement of the product. In conducting such a competition or making such a purchase, the Secretary shall consider a timely offer from Federal Prison Industries.”.

(b) Effective Date.—The amendment made by subsection (a) shall take effect 60 days after the date of the enactment of this Act.

The House bill contained a provision (sec. 829) that would amend section 804(b)(2) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92) to change part of the objective of an acquisition program under the rapid fielding pathway from completing fielding within 5 years, to completing low-rate initial production within 5 years.

The Senate amendment contained no similar provision.

The House recedes.

Section 804(b)(2) of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 note) is amended by striking “complete fielding within five years” and inserting “complete low-rate initial production (as described under section 2400 of title 10, United States Code) within five years”.

The House bill contained a provision (sec. 832) that would create a precise definition for "subcontract" in title 41, United States Code, and incorporate this revised definition in title 10, United States Code.

The Senate amendment contained no similar provision.

The House recedes.

(a) Standard Definition In Title 41, United States Code.—

(1) IN GENERAL.—Chapter 1 of title 41, United States Code, is amended—

(A) by redesignating sections 115 and 116 as sections 116 and 117, respectively; and

(B) by inserting after section 114 the following new section 115:

Ҥ 115. Subcontract

“(a) In General.—In this subtitle, the term ‘subcontract’ means a contract entered into by a prime contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services of any kind under a prime contract. The term includes a transfer of a commercial product or commercial service between divisions, subsidiaries, or affiliates of a contractor or subcontractor.

“(b) Matters Not Included.—In this subtitle, the term ‘subcontract’ does not include—

“(1) a contract the costs of which are applied to general and administrative expenses or indirect costs; or

“(2) an agreement entered into by a contractor or subcontractor for the supply of a commodity, a commercial product, or a commercial service that is intended for use in the performance of multiple contracts.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 1 of title 41, United States Code, is amended by striking the items relating to sections 115 and 116 and inserting the following new items:

“115. Subcontract.
“116. Supplies.
“117. Technical data.”.

(b) Conforming Amendments To Title 41, United States Code.—Title 41, United States Code, is further amended as follows:

(1) Section 1502(b)(1) is amended—

(A) by striking subparagraph (A);

(B) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and

(C) in subparagraph (B), as so redesignated, by striking “Subparagraph (B)” and inserting “Subparagraph (A)”.

(2) Section 1906 is amended—

(A) in subsection (c)—

(i) by striking paragraph (1);

(ii) by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively;

(iii) in paragraph (1), as so redesignated, by striking “paragraph (3)” and inserting “paragraph (2)”; and

(iv) in paragraph (2), as so redesignated, by striking “paragraph (2)” and inserting “paragraph (1)”; and

(B) in subsection (e), by striking “(c)(3)” both places it appears and inserting “(c)(2)”.

(3) Section 3307(e)(2) is amended—

(A) by striking subparagraph (A);

(B) by redesignating subparagraphs (B), (C), (D), and (E) as subparagraphs (A), (B), (C), and (D), respectively;

(C) in subparagraph (C), as so redesignated—

(i) by striking “subparagraph (B)” and inserting “subparagraph (A)”; and

(ii) by striking “subparagraph (C)” and inserting “subparagraph (B)”; and

(D) in subparagraph (D), as so redesignated, by striking “subparagraph (B)” and inserting “subparagraph (A)”.

(4) Section 3501(a) is amended by striking paragraph (3).

(c) Incorporation Of Title 41 Definition In Chapters 137 And 140 Of Title 10, United States Code.—

(1) DEFINITIONS FOR PURPOSES OF CHAPTER 137.—Section 2302(3) of title 10, United States Code, is amended by adding at the end the following new subparagraph:

“(N) The term ‘subcontract’.”.

(2) DEFINITIONS FOR PURPOSES OF CHAPTER 140.—

(A) Section 2375(c) of title 10, United States Code, is amended—

(i) by striking paragraph (3); and

(ii) by redesignating paragraph (4) as paragraph (3).

(B) Section 2376(1) of such title is amended by striking “and ‘commercial component’ have” and inserting “ ‘commercial component’, and ‘subcontract’ have”.

The Senate amendment contained a provision (sec. 841) that would amend section 1762 of title 10, United States Code, to provide a permanent authority for personnel programs for employees in the Department of Defense civilian acquisition workforce and supporting personnel assigned to work directly with that workforce.

The House bill contained no similar provision.

The Senate recedes.

(a) Permanent Authority.—Section 1762 of title 10, United States Code, is amended by striking subsections (g) and (h).

(b) Scope Of Authority.—Subsection (a) of such section is amended by striking “Commencement.—” and all that follows through “a demonstration project,” and inserting “In General.—The Secretary of Defense may carry out demonstration projects”.

The House bill contained a provision (sec. 845) that would direct the Secretary of Defense to give preference in awarding contracts for telecommunication services or installation of telecommunication infrastructure on military installations located in the United States or its territories to Americanowned and –operated companies.

The Senate amendment contained no similar provision.

The House recedes.

In awarding contracts for telecommunication services or installation of telecommunication infrastructure on military installations located in the United States or its territories, the Secretary of Defense shall give preference to American-owned and -operated companies.

The House bill contained a provision (sec. 846) that would provide a sense of Congress on unmanned ground vehicle technology.

The Senate amendment contained no similar provision.

The House recedes.

The conferees note that the design, manufacturing, and repair of the technology in unmanned ground vehicles is critical to national security.

It is the sense of Congress that design, manufacturing, and repair of the technology in unmanned ground vehicles is critical to national security. To that end, the national technology and industrial base periodic defense capability assessments required under section 2505 of title 10, United States Code, as well as the national security strategy for the national technology and industrial base required under section 2501 of such title, should include the unmanned ground vehicles industry.

 

The House bill contained a provision (sec. 857) that would amend the Small Business Investment Act of 1958 (15 U.S.C. 682(b)) by increasing the Individual Leverage Limit from $150.0 million to $175.0 million and by increasing the total amount of capital and surplus that a financial institution and Federal savings association can invest in a small business investment company from 5 percent to 15 percent.

The Senate amendment contained no similar provision.

The House recedes.

(a) Investment In Small Business Investment Companies.—Section 302(b) of the Small Business Investment Act of 1958 (15 U.S.C. 682(b)) is amended—

(1) in paragraph (1), by inserting before the period the following: “or, subject to the approval of the appropriate Federal banking agency, 15 percent of such capital and surplus”;

(2) in paragraph (2), by inserting before the period the following: “or, subject to the approval of the appropriate Federal banking agency, 15 percent of such capital and surplus”; and

(3) by adding at the end the following:

“(3) APPROPRIATE FEDERAL BANKING AGENCY DEFINED.—For purposes of this subsection, the term ‘appropriate Federal banking agency’ has the meaning given that term under section 3 of the Federal Deposit Insurance Act.”.

(b) Increase To Maximum Leverage Limit.—Section 303(b)(2)(A)(ii) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)(A)(ii)) is amended by striking “$150,000,000” and inserting “$175,000,000”.

The House bill contained a provision (sec. 860) that would amend subparagraph (B) of section 1908(b)(2) of title 41, United States Code, to exempt certain contracts from the periodic inflation adjustments to the acquisition-related dollar threshold.

The Senate amendment contained no similar provision.

The House recedes.

Subparagraph (B) of section 1908(b)(2) of title 41, United States Code, is amended by inserting “3131 to 3134,” after “sections”.

The House bill contained a provision (sec. 861) that would amend the Small Business Act to reauthorize the SCORE program.

The Senate amendment contained no similar provision.

The House recedes.

(a) SCORE Reauthorization.—Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended—

(1) by redesignating subsection (j) as subsection (f); and

(2) by adding at the end the following:

“(g) SCORE Program.—There are authorized to be appropriated to the Administrator to carry out the SCORE program authorized by section 8(b)(1) such sums as are necessary for the Administrator to make grants or enter into cooperative agreements in a total amount that does not exceed $10,500,000 in each of fiscal years 2018 and 2019.”.

(b) SCORE Program.—Section 8 of the Small Business Act (15 U.S.C. 637) is amended—

(1) in subsection (b)(1)(B), by striking “a Service Corps of Retired Executives (SCORE)” and inserting “the SCORE program described in subsection (c)”; and

(2) by striking subsection (c) and inserting the following:

“(c) SCORE Program.—

“(1) DEFINITION.—In this subsection:

“(A) SCORE ASSOCIATION.—The term ‘SCORE Association’ means the Service Corps of Retired Executives Association or any successor or other organization who receives a grant from the Administrator to operate the SCORE program under paragraph (2)(A).

“(B) SCORE PROGRAM.—The term ‘SCORE program’ means the SCORE program authorized by subsection (b)(1)(B).

“(2) MANAGEMENT AND VOLUNTEERS.—

“(A) IN GENERAL.—The Administrator shall provide a grant to the SCORE Association to manage the SCORE program.

“(B) VOLUNTEERS.—A volunteer participating in the SCORE program shall—

“(i) based on the business experience and knowledge of the volunteer—

“(I) provide at no cost to individuals who own, or aspire to own, small business concerns personal counseling, mentoring, and coaching relating to the process of starting, expanding, managing, buying, and selling a business; and

“(II) facilitate low-cost education workshops for individuals who own, or aspire to own, small business concerns; and

“(ii) as appropriate, use tools, resources, and expertise of other organizations to carry out the SCORE program.

“(3) PLANS AND GOALS.—The Administrator, in consultation with the SCORE Association, shall ensure that the SCORE program and each chapter of the SCORE program develop and implement plans and goals to more effectively and efficiently provide services to individuals in rural areas, economically disadvantaged communities, and other traditionally underserved communities, including plans for electronic initiatives, web-based initiatives, chapter expansion, partnerships, and the development of new skills by volunteers participating in the SCORE program.

“(4) ANNUAL REPORT.—The SCORE Association shall submit to the Administrator an annual report that contains—

“(A) the number of individuals counseled or trained under the SCORE program;

“(B) the number of hours of counseling provided under the SCORE program; and

“(C) to the extent possible—

“(i) the number of small business concerns formed with assistance from the SCORE program;

“(ii) the number of small business concerns expanded with assistance from the SCORE program; and

“(iii) the number of jobs created with assistance from the SCORE program.

“(5) PRIVACY REQUIREMENTS.—

“(A) IN GENERAL.—Neither the Administrator nor the SCORE Association may disclose the name, address, or telephone number of any individual or small business concern receiving assistance from the SCORE Association without the consent of such individual or small business concern, unless—

“(i) the Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or

“(ii) the Administrator determines such a disclosure to be necessary for the purpose of conducting a financial audit of the SCORE program, in which case disclosure shall be limited to the information necessary for the audit.

“(B) ADMINISTRATOR USE OF INFORMATION.—This paragraph shall not—

“(i) restrict the access of the Administrator to program activity data; or

“(ii) prevent the Administrator from using client information to conduct client surveys.

“(C) STANDARDS.—

“(i) IN GENERAL.—The Administrator shall, after the opportunity for notice and comment, establish standards for—

“(I) disclosures with respect to financial audits under subparagraph (A)(ii); and

“(II) conducting client surveys, including standards for oversight of the surveys and for dissemination and use of client information.

“(ii) MAXIMUM PRIVACY PROTECTION.—The standards issued under this subparagraph shall, to the extent practicable, provide for the maximum amount of privacy protection.”.

(c) Online Component.—

(1) IN GENERAL.—Section 8(c) of the Small Business Act (15 U.S.C. 637(c)), as amended by subsection (b), is further amended by adding at the end the following:

“(6) ONLINE COMPONENT.—In carrying out this subsection, the SCORE Association shall make use of online counseling, including by developing and implementing webinars and an electronic mentoring platform to expand access to services provided under this subsection and to further support entrepreneurs.”.

(2) ONLINE COMPONENT REPORT.—

(A) IN GENERAL.—At the end of fiscal year 2018, the SCORE Association shall issue a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate on the effectiveness of the online counseling and webinars required as part of the SCORE program, including—

(i) how the SCORE Association determines electronic mentoring and webinar needs, develops training for electronic mentoring, establishes webinar criteria curricula, and evaluates webinar and electronic mentoring results;

(ii) describing the internal controls that are used and a summary of the topics covered by the webinars; and

(iii) performance metrics, including the number of small business concerns counseled by, the number of small business concerns created by, the number of jobs created and retained by, and the funding amounts directed towards such online counseling and webinars.

(B) DEFINITIONS.—For purposes of this subsection, the terms “SCORE Association” and “SCORE program” have the meaning given those terms, respectively, under section 8(c)(1) of the Small Business Act (15 U.S.C. 637(c)(1)).

(d) Study And Report On The Future Role Of The Score Program.—

(1) STUDY.—The SCORE Association shall carry out a study on the future role of the SCORE program and develop a strategic plan for how the SCORE program will evolve to meet the needs of small business concerns and potential future small business concerns over the course of the 5 years following the date of enactment of this Act, with markers and specific objectives for year 1, year 3, and year 5.

(2) REPORT.—Not later than the end of the 6-month period beginning on the date of the enactment of this Act, the SCORE Association shall issue a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate containing—

(A) all findings and determination made in carrying out the study required under paragraph (1);

(B) the strategic plan developed under paragraph (1);

(C) an explanation of how the SCORE Association plans to achieve the strategic plan, assuming both stagnant and increased funding levels.

(3) DEFINITIONS.—For purposes of this section, the terms “SCORE Association” and “SCORE program” have the meaning given those terms, respectively, under section 8(c)(1) of the Small Business Act (15 U.S.C. 637(c)(1)).

(e) Technical And Conforming Amendments.—

(1) SMALL BUSINESS ACT.—The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(A) in section 7(m)(3)(A)(i)(VIII) (15 U.S.C. 636(m)(3)(A)(i)(VIII)), by striking “Service Corps of Retired Executives” and inserting “SCORE program”; and

(B) in section 22 (15 U.S.C. 649)—

(i) in subsection (b)—

(I) in paragraph (1), by striking “Service Corps of Retired Executives” and inserting “SCORE program”; and

(II) in paragraph (3), by striking “Service Corps of Retired Executives” and inserting “SCORE program”; and

(ii) in subsection (c)(12), by striking “Service Corps of Retired Executives” and inserting “SCORE program”.

(2) OTHER LAWS.—

(A) CHILDREN’S HEALTH INSURANCE PROGRAM REAUTHORIZATION ACT OF 2009.—Section 621 of the Children’s Health Insurance Program Reauthorization Act of 2009 (15 U.S.C. 657p) is amended—

(i) in subsection (a), by striking paragraph (4) and inserting the following:

“(4) the term ‘SCORE program’ means the SCORE program authorized by section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B));”; and

(ii) in subsection (b)(4)(A)(iv), by striking “Service Corps of Retired Executives” and inserting “SCORE program”.

(B) ENERGY POLICY AND CONSERVATION ACT.—Section 337(d)(2)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6307(d)(2)(A)) is amended by striking “Service Corps of Retired Executives (SCORE)” and inserting “SCORE program”.

The House bill contained a provision (sec. 865) that would modify the Small Business Act with regard to the United States Virgin Islands.

The Senate amendment contained no similar provision.

The House recedes.

(a) Short Title.—This section may be cited as the “United States Virgin Islands Small Business Contracting Assistance Act of 2018”.

(b) Definition Of United States Virgin Islands Business.—Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following new subsection:

“(ee) United States Virgin Islands Business.—In this Act, the term ‘United States Virgin Islands business’ means a small business concern that has its principal office located in the United States Virgin Islands.”.

(c) Small Business Credit For United States Virgin Islands Businesses.—Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following new subsection:

“(w) Small Business Credit For United States Virgin Islands Businesses.—

“(1) CREDIT FOR MEETING CONTRACTING GOALS.—If an agency awards a prime contract to United States Virgin Islands business during the period beginning on the date of enactment of this subsection and ending on the date that is 4 years after such date of enactment, the value of the contract shall be doubled for purposes of determining compliance with the goals for procurement contracts under subsection (g)(1)(A)(i) during such period.

“(2) REPORT.—Along with the report required under subsection (h)(1), the head of each Federal agency shall submit to the Administrator, and make publicly available on the scorecard described in section 868(b) of the National Defense Authorization Act for Fiscal Year 2016 (15 U.S.C. 644 note), an analysis of the number and dollar amount of prime contracts awarded pursuant to paragraph (1) for each fiscal year of the period described in such paragraph.”.

(d) Priority For Surplus Property Transfers.—Section 7(j)(13)(F) of the Small Business Act (15 U.S.C. 636(j)(13)(F)) is amended by adding at the end the following new clause:

“(iii) (I) In this clause, the term ‘covered period’ means the period beginning on the date of enactment of this clause and ending on the date that is 3 years after such date of enactment.

“(II) The Administrator may transfer technology or surplus property under clause (i) to a United States Virgin Islands business during the covered period if the such business meets the requirements for such a transfer, without regard to whether such business is a Program Participant.”.

(e) Contracting Incentives For Protege Firms That Are United States Virgin Islands Businesses.—

(1) IN GENERAL.—Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is amended by adding at the end the following new paragraph:

“(3) UNITED STATES VIRGIN ISLANDS BUSINESSES.—During the period beginning on the date of enactment of this paragraph and ending on the date that is 3 years after such date of enactment, the Administrator shall identify potential incentives to a covered mentor that awards a subcontract to its covered protege, including—

“(A) positive consideration in any past performance evaluation of the covered mentor;

“(B) the application of costs incurred for providing training to such covered protege to the subcontracting plan (as required under paragraph (4) or (5) of section 8(d)) of the covered mentor; and

“(C) such other incentives as the Administrator determines appropriate.”.

(2) DEFINITIONS.—Section 45(d) of the Small Business Act (15 U.S.C. 657r(d)) is amended by adding at the end the following new paragraphs:

“(4) COVERED MENTOR.—The term ‘covered mentor’ means a mentor that enters into an agreement under this Act, or under any mentor-protege program approved under subsection (b)(1), with a covered protege.

“(5) COVERED PROTEGE.—The term ‘covered protege’ means a protege of a covered mentor that is a United States Virgin Islands business.”.

(f) Additional Mentor-Protege Relationships For Protege Firms That Are United States Virgin Islands Businesses.—Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by inserting “, except that, during the 3-year period beginning on the date of the enactment of the United States Virgin Islands Small Business Contracting Assistance Act of 2018, such restrictions shall not apply to up to 2 mentor-protege relationships if such relationships are between a covered protege and covered mentor” after “each participant”.

The House bill contained a provision (sec. 867) that would amend section 32 of the Small Business Act (15 U.S.C. 657b) to require the Administrator of the Small Business Administration to carry out a program to provide entrepreneurship training to certain servicemembers, veterans, and their spouses or dependents.

The Senate amendment contained no similar provision.

The House recedes.

(a) Sense Of Congress.—It is the sense of Congress that the Secretary of Defense should coordinate with the Administrator of the Small Business Administration to include relevant aspects of veterans assistance programs of the Small Business Administration in the Transition Assistance Program established under section 1144 of title 10, United States Code.

(b) Boots To Business Program.—Section 32 of the Small Business Act (15 U.S.C. 657b) is amended—

(1) by redesignating subsection (f) as subsection (g); and

(2) by inserting after subsection (e) the following new subsection:

“(f) Boots To Business Program.—

“(1) DEFINITIONS.—In this subsection—

“(A) the term ‘covered individual’ means—

“(i) a member of the Armed Forces, including the National Guard or Reserves;

“(ii) an individual who is participating in the Transition Assistance Program established under section 1144 of title 10, United States Code;

“(iii) an individual who—

“(I) served on active duty in any branch of the Armed Forces, including the National Guard or Reserves; and

“(II) was discharged or released from such service under conditions other than dishonorable; and

“(iv) a spouse or dependent of an individual described in clause (i), (ii), or (iii); and

“(B) the term ‘Vet Center’ has the meaning given in section 1712A(h) of title 38, United States Code.

“(2) ESTABLISHMENT.—The Administrator shall carry out a program to be known as the ‘Boots to Business Program’ to provide entrepreneurship training to covered individuals.

“(3) GOALS.—The goals of the Boots to Business Program are to—

“(A) provide assistance and in-depth training to covered individuals interested in business ownership; and

“(B) provide covered individuals with the tools, skills, and knowledge necessary to identify a business opportunity, draft a business plan, identify sources of capital, connect with local resources for small business concerns, and launch a small business concern.

“(4) PROGRAM COMPONENTS.—

“(A) IN GENERAL.—The Boots to Business Program may include—

“(i) a presentation providing exposure to the considerations involved in self-employment and ownership of a small business concern;

“(ii) an online, self-study course focused on the basic skills of entrepreneurship, the language of business, and the considerations involved in self-employment and ownership of a small business concern;

“(iii) an in-person classroom instruction component providing an introduction to the foundations of self employment and ownership of a small business concern; and

“(iv) in-depth training delivered through online instruction, including an online course that leads to the creation of a business plan.

“(B) COLLABORATION.—The Administrator may—

“(i) collaborate with public and private entities to develop course curricula for the Boots to Business Program; and

“(ii) modify program components in coordination with entities participating in a Warriors in Transition program, as defined in section 738(e) of the National Defense Authorization Act for Fiscal Year 2013 (10 U.S.C. 1071 note).

“(C) UTILIZATION OF RESOURCE PARTNERS.—

“(i) IN GENERAL.—The Administrator shall—

“(I) ensure that Veteran Business Outreach Centers regularly participate, on a nationwide basis, in the Boots to Business Program; and

“(II) to the maximum extent practicable, use a variety of other resource partners and entities in administering the Boots to Business Program.

“(ii) GRANT AUTHORITY.—In carrying out clause (i), the Administrator may make grants to Veteran Business Outreach Centers, other resource partners, or other entities to carry out components of the Boots to Business Program.

“(D) AVAILABILITY TO DEPARTMENT OF DEFENSE.—The Administrator shall make available to the Secretary of Defense information regarding the Boots to Business Program, including all course materials created for the Boots to Business Program, for inclusion on the website of the Department of Defense relating to the Transition Assistance Program, in the Transition Assistance Program manual, and in other relevant materials available for distribution from the Secretary of Defense.

“(E) AVAILABILITY TO VETERANS AFFAIRS.—In consultation with the Secretary of Veterans Affairs, the Administrator shall make available outreach materials regarding the Boots to Business Program for distribution and display at local facilities of the Department of Veterans Affairs which shall, at a minimum—

“(i) describe the Boots to Business Program and the services provided; and

“(ii) include eligibility requirements for participating in the Boots to Business Program.

“(5) REVIEW.—The Inspector General of the Administration shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an annual report regarding the awarding of grants to entities under paragraph (4)(C).

“(6) REPORT.—Not later than 180 days after the date of enactment of this subsection and every year thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the performance and effectiveness of the Boots to Business Program, which may be included as part of another report submitted to such Committees by the Administrator, and which shall include—

“(A) the number of program participants using each component of the Boots to Business Program;

“(B) the completion rates for each component of the Boots to Business Program;

“(C) to the extent possible—

“(i) the demographics of program participants, to include gender, age, race, relationship to military, military occupational specialty, and years of service of program participants;

“(ii) the number of small business concerns formed or expanded with assistance under the Boots to Business Program;

“(iii) the gross receipts of small business concerns receiving assistance under the Boots to Business Program;

“(iv) the number of jobs created with assistance under the Boots to Business Program;

“(v) the number of referrals to other resources and programs of the Administration;

“(vi) the number of program participants receiving financial assistance under loan programs of the Administration;

“(vii) the type and dollar amount of financial assistance received by program participants under any loan program of the Administration; and

“(viii) results of participant satisfaction surveys, including a summary of any comments received from program participants;

“(D) an evaluation of the effectiveness of the Boots to Business Program in each region of the Administration during the most recent fiscal year;

“(E) an assessment of additional performance outcome measures for the Boots to Business Program, as identified by the Administrator;

“(F) any recommendations of the Administrator for improvement of the Boots to Business Program, which may include expansion of the types of individuals who are covered individuals;

“(G) an explanation of how the Boots to Business Program has been integrated with other transition programs and related resources of the Administration and other Federal agencies; and

“(H) any additional information the Administrator determines necessary.”.

The House bill contained a provision (sec. 868) that would modify the small business development centers program.

The Senate amendment contained no similar provision.

The House recedes.

(a) Use Of Authorized Entrepreneurial Development Programs.—The Small Business Act (15 U.S.C. 631 et seq.), as amended by this Act, is amended—

(1) by redesignating section 48 as section 49; and

(2) by inserting after section 47 the following new section:

The House bill contained a provision (sec. 871) that would amend section 2322a of title 10, United States Code, and codify existing Defense Federal Acquisition Regulations on noncommercial software rights as well as mandate, to the maximum extent practicable, that specially negotiated licenses be used for weapon systems noncommercial software.

The Senate amendment contained no similar provision.

The House recedes.

Section 2322a of title 10, United States Code, is amended by adding at the end the following new subsections:

“(c) Rights To Noncommercial Computer Software.—As part of any negotiation for the acquisition of noncommercial computer software, the Secretary of Defense may not require a contractor to sell or otherwise relinquish to the Federal Government any rights to noncommercial computer software developed exclusively at private expense, except for rights related to—

“(1) corrections or changes to such software or documentation related to such software furnished to the contractor by the Department of Defense;

“(2) such software or documentation related to such software that is otherwise publicly available or that has been released or disclosed by the contractor or subcontractor without restrictions on further use, release, or disclosure, other than a release or disclosure resulting from the sale, transfer, or other assignment of interest in such software or documentation to another party.

“(3) such software or documentation related to such software obtained with unlimited rights under another contract with the Federal Government or as a result of such a negotiation; or

“(4) such software or documentation related to such software furnished to the Department of Defense under a contract or subcontract that includes—

“(A) restricted rights in such software, limited rights in technical data, or government purpose rights, where such restricted rights, limited rights, or government purpose rights have expired; or

“(B) government purpose rights, where the contractor’s exclusive right to use such software or documentation for commercial purposes has expired.

“(d) Consideration Of Specially Negotiated Licenses.—The Secretary of Defense shall, to the maximum extent practicable, negotiate and enter into a contract with a contractor for a specially negotiated license for noncommercial computer software or documentation related to such software necessary to support the product support strategy of a major weapon system or subsystem of a major weapon system.”.

The House bill contained a provision (sec. 872) that would amend section 2432(c)(1)(B) of title 10, United States Code, by removing the requirement for risk and sensitivity analysis to be included with baseline estimates in selected acquisition reports.

The Senate amendment contained no similar provision.

The House recedes.

The conferees note that quantitative and qualitative risk and sensitivity analyses help decision-makers to identify cost drivers and understand the effects of changing variables on cost estimates. The National Defense Authorization Act for Fiscal Year 2014 (Public Law 113-66) required that a program’s baseline cost estimate, along with the associated risk curve and sensitivity of that estimate, be provided in the quarterly selected acquisition reports. In addition, it required that the reports include the current point estimate bounded by the lowend and high-end estimates and the associated sensitivity of those estimates, and identification of the primary risk parameters associated with the estimate.

The conferees note that these requirements are intended to promote use of relatively commonplace data and statistical analysis techniques that are well understood by most practitioners. However, the conferees understand that this language has been interpreted by Department of Defense officials as requiring analysis of the sensitivity of the information in a security context for selected acquisition reports, resulting in unwarranted barriers to dissemination.

The conferees direct the Department of Defense to comply with all legal requirements relating to contents of selected acquisition reports, noting the clarification of intent above. Further, the conferees direct the Department to avoid labeling selected acquisition reports as "For Official Use Only" unless the specific justification for such restrictive markings is provided to the Congress for each individual report.

Section 2432(c)(1)(B) of title 10, United States Code, is amended by striking “, along with the associated risk and sensitivity analysis of that estimate” each place it appears.

The House bill contained a provision (sec. 874) that would amend sections 922 and 925 of title 18, United States Code, to allow joint production, integration, and calibration of military-grade hardware by licensed contractors, transfers of defense items to government customers, and export of authorized weapons to foreign governments.

The Senate amendment contained no similar provision.

The House recedes.

(a) Transfer And Possession Exceptions.—Section 922(o)(2) of title 18, United States Code, is amended—

(1) in subparagraph (A), by striking “or by” and inserting “, by, or under the authority of”;

(2) by striking “or” at the end of subparagraph (A);

(3) by striking the period at the end of subparagraph (B) and inserting a semicolon; and

(4) by inserting after subparagraph (B) the following new subparagraphs:

“(C) a transfer to, or possession by, a licensed manufacturer or licensed importer (if, with respect to a transfer, such transfer has been approved by the Attorney General in accordance with law) for purposes of—

“(i) joint production of a weapon, or integration or incorporation into another article or device;

“(ii) calibration, testing, or research and development;

“(iii) permanent or temporary export, or temporary import, otherwise in accordance with law; or

“(iv) training of Federal, State, local, or foreign government personnel;

“(D) a transfer to, or possession by, a licensee for the purpose of repair and return of the same to a lawful possessor; or

“(E) notwithstanding subsection (g)(5)(B), possession by foreign government personnel for official training purposes under the direct and continuous supervision of an authorized Federal, State, or local government official, or a licensee as described in subparagraph (C), provided that, upon completion of the training, such foreign government personnel shall relinquish possession of the same to such official or licensee.”.

(b) Importation Requirements.—Section 925(d) of such title is amended—

(1) in paragraph (3)—

(A) by inserting “except as provided in paragraph (5),” before “is of”; and

(B) by striking “or” at the end;

(2) in paragraph (4), by striking the period at the end and inserting “; or”; and

(3) by inserting after paragraph (4) the following new paragraph:


“(5) is being imported or brought in by a licensed manufacturer or licensed importer in conformity with, and solely for a purpose described in subparagraph (A), (C), (D), or (E) of section 922(o)(2).”.

(c) Effective Date.—This section and the amendments made by this section shall take effect 30 days after the date of the enactment of this Act.

The House bill contained a provision (sec. 875) that would expand and extend direct-hire authority for acquisition professionals.

The Senate amendment contained no similar provision.

The House recedes.

Section 1703(j) of title 41, United States Code, is amended—

(1) in paragraph (1)—

(A) by striking “sections 3304, 5333, and 5753 of title 5” and inserting “section 3304 of title 5”;

(B) by striking “authorities in those sections” and inserting “authority in such section”; and

(C) by striking “certain Federal acquisition positions (as described in subsection (g)(1)(A))” and inserting “the Federal acquisition provisions described in paragraph (2)”; and

(2) by redesignating paragraph (2) as paragraph (3);

(3) by inserting after paragraph (1) the following new paragraph:

“(2) POSITIONS DESCRIBED.—The Federal acquisition positions described in this paragraph are the following:

“(A) Any position listed in (g)(1)(A).

“(B) All positions in the General Schedule Realty series (GS–1170).”; and

(4) in paragraph (3) (as so redesignated), by striking “September 30, 2017” and inserting “September 30, 2021”.

The House bill contained a provision (sec. 887) that would provide a sense of Congress regarding steel produced in the United States.

The Senate amendment contained no similar provision.

The House recedes.

The conferees note that a strong domestic iron ore and steel industry is vital to the national security of the United States.

(a) Findings.—Congress finds the following:

(1) Frequent surges in unfairly trade steel imports have materially injured the iron ore and steel industries in the United States, putting our national, economic, and energy security at risk.

(2) High-quality American steel products are vital to the success of the United States military and are used in a variety of applications from aircraft carriers to armor plate for tanks as well as critical energy infrastructure like the electrical grid and energy pipelines.

(3) Domestic producers of defense-related steel products are dependent on the overall financial health of the iron ore and steel industries in the United States.

(4) The loss of a strong domestic iron ore and steel industry would make the United States dangerously dependent upon foreign sources of steel, such as China.

(b) Sense Of Congress.—It is the sense of Congress that a strong domestic iron ore and steel industry is vital to the national security of the United States.

The Senate amendment contained a provision (sec. 893) that would amend section 638 of title 15, United States Code, to provide a permanent authority for the Small Business Innovation Research program (SBIR) and the Small Business Technology Transfer program (STTR) in the Department of Defense.

The House bill contained no similar provision.

The Senate recedes.

(A) by inserting “(or, with respect to the Department of Defense, any fiscal year)” after “2022”; and

(B) by inserting “(or, with respect to the Department of Defense, for any fiscal year)” after “for that fiscal year”.