Limitations on certain missile contracts or other agreements

(a) Limitation on use of funds (1) In general None of the funds appropriated by this Act or any previous Act, or otherwise made available to the Department of Defense may be obligated or expended on a covered contract or other agreement unless the Secretary of Defense certifies to the congressional defense committees, in writing, that such contract or other agreement does not contain any clause or provision that would authorize the Secretary to— (A) remove or install personnel at any prime contractor or subcontractor; or (B) direct the internal resources of any prime contractor or subcontractor, including independent research and development or capital expenditures, regardless of whether such term is a condition of award, as a penalty for delinquency, or for any other reason, unless the Department of Defense paid for such resources as a direct cost under the contract or other agreement. (2) Removal of non-conforming clause If the Secretary determines that any covered contract or other agreement awarded prior to the date of the enactment of this Act does not conform to the requirements of paragraph (1), the Secretary shall seek to enter into bilateral negotiations with the contractor to modify such contract or other agreement to remove the non-conforming clause or provision without consideration. (b) Prohibition on contract modifications (1) In general Except as may be necessary to comply with subsection (a)(2), the Secretary of Defense may not make any modification or change to any term of a covered contract or other agreement that is entered into using funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2027, to alleviate contractor performance issues, including delinquency, cost overruns, schedule delays, technical performance issues, or any other performance-related grounds, and shall strictly enforce all such terms as written. (2) Exception Paragraph (1) shall not apply to a modification or change to a covered contract or other agreement if such modification is made pursuant to the extraordinary contractual relief authorities provided in the Act entitled An Act to authorize the making, amendment, and modification of contracts to facilitate the national defense, approved August 28, 1958 (50 U.S.C. 1431 et seq.) and complies with all applicable regulations and procedures implementing such authorities. (c) Definitions In this section, the term covered contract or other agreement means any of the following contract or other agreement entered into using multiyear procurement authorities authorized in section 804 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119–60; 10 U.S.C. 3501 et seq.): (1) Patriot Advanced Capability-3 (PAC-3). (2) Tomahawk Cruise Missile. (3) Joint Air-to-Air Standoff Missile (JASSM). (4) Long-Range Anti-Ship Missile (LRASM). (5) Standard Missile-6 (SM-6). (6) Standard Missile-3 (SM-3) Block IB. (7) Advanced Medium-Range Air-to-Air Missile (AMRAAM). (8) Terminal High Altitude Area Defense (THAAD). (9) Low-Cost Hypersonic Strike Systems. (10) Family of Affordable Mass Munitions (FAMM), Extended-Range Attack Munition (ERAM), Enterprise Test Vehicle (ETV), or ground-launched low-cost cruise missile systems.