Review of commercial buying practices

(a) Review required (1) In general Not later than 120 days after the enactment of this Act, the Secretary of Defense shall carry out a comprehensive review of the approach of the Department of Defense to acquiring commercial products and commercial services and the implementation of the requirements of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) by the Department. (2) Review requirements The review required by paragraph (1) shall include an assessment of each of the following as they relate to the approach of the Department of Defense to acquiring commercial products and commercial services: (A) The policies, procedures, guidance, and instructions of the Department of Defense. (B) The extent to which contracts entered into by the Department of Defense for the acquisition of commercial products or commercial services include requirements or other provisions that should not apply to the acquisition of a commercial product or commercial service and the extent to which such requirements or other provisions are included in subcontracts under such contracts. (C) Training curricula, educational materials, and associated activities of the Department of Defense related to acquiring commercial products and commercial services, including such curricula, materials, and activities that pertain to the determination of a product or service as a commercial product or commercial service and the congressional intent that the definitions of the terms commercial product and commercial service should be applied broadly. (D) Audit and oversight policies and practices of the Department of Defense. (E) Incentives that discourage the acquisition workforce from acquiring commercial products or commercial services. (F) The process by which the Department of Defense develops and issues regulations related to the acquisition of commercial products or commercial services, including delays in rulemaking and the resulting delays in the implementation of policies intended to improve or streamline the acquisition of commercial products or commercial services. (G) Requirements in solicitations or contracts of the Department of Defense requiring the use of military specifications or standards when applicable commercial specifications or standards were available that could have meet the needs of the Department served by such military specifications or standards. (H) The process by which the Department of Defense evaluates past performance, including performance under Federal, State, and local government and private contracts (as described in section 15.305(a)(2)(ii) of the Federal Acquisition Regulation), in the acquisition of commercial products or commercial services. (b) Report Not later than 180 days after the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that— (1) describes the findings of the review required by subsection (a)(1); (2) describes the corrective actions taken by the Secretary to address the issues identified pursuant to such review, including any findings of noncompliance by the Department of Defense with the requirements of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) or any other statutory or regulatory requirements related to advancing and enabling the procurement of commercial products and commercial services; and (3) includes any recommendations of the Secretary on actions that Congress may take to better enable the Department of Defense to take advantage of the benefits of acquiring commercial products and commercial services.

(a) Review required (1) In general Not later than 120 days after the enactment of this Act, the Secretary of Defense shall carry out a comprehensive review of the approach of the Department of Defense to acquiring commercial products and commercial services and the implementation of the requirements of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) by the Department. (2) Review requirements The review required by paragraph (1) shall include an assessment of each of the following as they relate to the approach of the Department of Defense to acquiring commercial products and commercial services: (A) The policies, procedures, guidance, and instructions of the Department of Defense. (B) The extent to which contracts entered into by the Department of Defense for the acquisition of commercial products or commercial services include requirements or other provisions that should not apply to the acquisition of a commercial product or commercial service and the extent to which such requirements or other provisions are included in subcontracts under such contracts. (C) Training curricula, educational materials, and associated activities of the Department of Defense related to acquiring commercial products and commercial services, including such curricula, materials, and activities that pertain to the determination of a product or service as a commercial product or commercial service and the congressional intent that the definitions of the terms commercial product and commercial service should be applied broadly. (D) Audit and oversight policies and practices of the Department of Defense. (E) Incentives that discourage the acquisition workforce from acquiring commercial products or commercial services. (F) The process by which the Department of Defense develops and issues regulations related to the acquisition of commercial products or commercial services, including delays in rulemaking and the resulting delays in the implementation of policies intended to improve or streamline the acquisition of commercial products or commercial services. (G) Requirements in solicitations or contracts of the Department of Defense requiring the use of military specifications or standards when applicable commercial specifications or standards were available that could have meet the needs of the Department served by such military specifications or standards. (H) The process by which the Department of Defense evaluates past performance, including performance under Federal, State, and local government and private contracts (as described in section 15.305(a)(2)(ii) of the Federal Acquisition Regulation), in the acquisition of commercial products or commercial services. (b) Report Not later than 180 days after the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that— (1) describes the findings of the review required by subsection (a)(1); (2) describes the corrective actions taken by the Secretary to address the issues identified pursuant to such review, including any findings of noncompliance by the Department of Defense with the requirements of the Federal Acquisition Streamlining Act of 1994 (Public Law 103–355) or any other statutory or regulatory requirements related to advancing and enabling the procurement of commercial products and commercial services; and (3) includes any recommendations of the Secretary on actions that Congress may take to better enable to the Department of Defense to take advantage of the benefits of acquiring commercial products and commercial services. (c) Clarifying amendments (1) Treatment of major weapon systems Section 3455 of title 10, United States Code, is amended— (A) in subsection (c)(1), by striking may and inserting shall; (B) by amending subsection (d) to read as follows: (d) Applicability of Truthful Cost or Pricing Data requirements A product treated as a commercial product or purchased under procedures established for the procurement of commercial products under subsection (a) shall be treated as a commercial product for the purposes of chapter 271 of this title.; and (C) in subsection (e), by striking Deputy Secretary of Defense and inserting Under Secretary of Defense for Acquisition and Sustainment. (2) Cost or pricing data exceptions Section 3703(a)(1) of title 10, United States Code, is amended by amending subparagraph (A) to read as follows: (A) adequate price competition; or.