(g) FUNDING. Of the amounts authorized to be appropriated under section 201, $20,000,000 shall be available for the University Research Initiative Support Program.

SEC. 831. [107 Stat. 1715] REFERENCE TO DEFENSE ACQUISITION PILOT PROGRAM.

A reference in this subtitle to the Defense Acquisition Pilot Program is a reference to the defense acquisition pilot program authorized by section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note). 1

SEC. 833. [10 U.S.C. 2430 note] MISSION ORIENTED PROGRAM MANAGEMENT.

(a) MISSION-ORIENTED PROGRAM MANAGEMENT.-In the exercise of the authority provided in section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note), the Secretary of Defense should propose for one or more of the defense acquisition programs covered by the Defense Acquisition Pilot Program to utilize the concept of mission-oriented program management.

(b) POLICIES AND PROCEDURES.-In the case of each defense acquisition program covered by the Defense Acquisition Pilot Program, the Secretary of Defense should prescribe policies and procedures for the interaction of the program manager and the commander of the operational command (or a representative) responsible for the requirement for the equipment acquired, and for the interaction with the commanders of the unified and specified combatant commands. Such policies and procedures should include provisions for enabling the user commands to participate in acceptance testing.

SEC. 837. [10 U.S.C. 2430 note] EFFICIENT CONTRACTING PROCESSES. The Secretary of Defense shall take any additional actions that the Secretary considers necessary to waive regulations not required by statute that affect the efficiency of the contracting process within the Department of Defense. Such actions shall include, in the Secretary's discretion, developing methods to streamline the procurement process, streamlining the period for entering into contracts, and defining alternative techniques to reduce reliance on military specifications and standards, in contracts for the defense

1 Section 809 of the National Defense Authorization Act for Fiscal Year 1991 (P.L. 101-510), referred to in sections 831 and 833(a), is set forth beginning on page 465. For other provisions related to the defense acquisition pilot program, see section 5064 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103-355), set forth beginning on page 625, and section 819 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103-337), set forth on page

acquisition programs participating in the Defense Acquisition Pilot Program.

SEC. 838. [10 U.S.C. 2430 note] CONTRACT ADMINISTRATION: PERFORMANCE BASED CONTRACT MANAGEMENT.

For at least one participating defense acquisition program for which a determination is made to make payments for work in progress under the authority of section 2307 of title 10, United States Code, the Secretary of Defense should define payment milestones on the basis of quantitative measures of results.

SEC. 839. [10 U.S.C. 2430 note] CONTRACTOR PERFORMANCE ASSESSMENT.

(a) COLLECTION AND ANALYSIS OF PERFORMANCE INFORMATION. The Secretary of Defense shall collect and analyze information on contractor performance under the Defense Acquisition Pilot Program.

(b) INFORMATION TO BE INCLUDED.-Information collected under subsection (a) shall include the history of the performance of each contractor under the Defense Acquisition Pilot Program contracts and, for each such contract performed by the contractor, a technical evaluation of the contractor's performance prepared by the program manager responsible for the contract.

Subtitle E-Other Matters

SEC. 841. [10 U.S.C. 2324 note] REIMBURSEMENT OF INDIRECT COSTS OF INSTITUTIONS OF HIGHER EDUCATION UNDER DEPARTMENT OF DEFENSE CONTRACTS.

(a) PROHIBITION.-The Secretary of Defense may not by regulation place a limitation on the amount that the Department of Defense may reimburse an institution of higher education for allowable indirect costs incurred by the institution for work performed for the Department of Defense under a Department of Defense contract unless that same limitation is applied uniformly to all other organizations performing similar work for the Department of Defense under Department of Defense contracts.

(b) WAIVER. The Secretary of Defense may waive the application of the prohibition in subsection (a) in the case of a particular institution of higher education if the governing body of the institution requests the waiver in order to simplify the overall management by that institution of cost reimbursements by the Department of Defense for contracts awarded by the Department to the institution.

(c) DEFINITIONS.-In this section:

(1) The term "allowable indirect costs" means costs that are generally considered allowable as indirect costs under regulations that establish the cost reimbursement principles applicable to an institution of higher education for purposes of Department of Defense contracts.

(2) The term "institution of higher education" has the meaning given such term in section 101 of the Higher Education Act of 1965.

SEC. 845. [10 U.S.C. 2371 note] AUTHORITY OF THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY TO CARRY OUT CERTAIN PROTOTYPE PROJECTS.

[Note: This is set forth as a footnote to section 2371 of title 10, United States Code, beginning on page 205.]

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SEC. 849. BUY AMERICAN PROVISIONS.

(a) COMPLIANCE WITH BUY AMERICAN ACT.-No funds authorized to be appropriated pursuant to this Act may be expended by an entity of the Department of Defense unless the entity, in expending the funds, complies with the Buy American Act.

(b) PROHIBITION OF CONTRACTS.-[10 U.S.C. 2410f note] If the Secretary of Defense determines that a person has been convicted of intentionally affixing a label bearing a "Made in America" inscription to any product sold in or shipped to the United States that is not made in America, the Secretary shall determine, in accordance with section 2410f of title 10, United States Code, whether the person should be debarred from contracting with the Department of Defense.

(c) 2 BUY AMERICAN ACT WAIVER.-[41 U.S.C. 10b-2 note] (1) If the Secretary of Defense, after consultation with the United States Trade Representative, determines that a foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating against certain types of products produced in the United States that are covered by the agreement, the Secretary of Defense shall rescind the Secretary's blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.

(2) An agreement referred to in paragraph (1) is any reciprocal defense procurement memorandum of understanding between the United States and a foreign country pur suant to which the Secretary of Defense has prospectively waived the Buy American Act for certain products in that country. 3

(d) DEFINITION.-For purposes of this section, the term "Buy American Act" means title III of the Act entitled "An Act making appropriations for the Treasury and Post Office Departments for the fiscal year ending June 30, 1934, and for other purposes", approved March 3, 1933 (41 U.S.C. 10a et seq.).

2 A provision similar to section 849(c) is contained in section 8033 of the Department of Defense Appropriations Act, 2003 (P.L. 107-248), set forth on page 485.

3 For a provision requiring a report which indicates the dollar value of items for which the Buy American Act was waived pursuant to a memorandum of understanding described in section 849(c)(2), see section 827 of the National Defense Authorization Act for Fiscal Year 1997 (P.L. 104-201), set forth beginning on page 430.

TITLE XXIX-DEFENSE BASE CLOSURE AND REALIGNMENT

Subtitle A-Base Closure Community

Assistance

SEC. 2912. [10 U.S.C. 2687 note] PREFERENCE FOR LOCAL AND SMALL BUSINESSES.

(a) PREFERENCE REQUIRED.—In entering into contracts with private entities as part of the closure or realignment of a military installation under a base closure law, the Secretary of Defense shall give preference, to the greatest extent practicable, to qualified businesses located in the vicinity of the installation and to small business concerns and small disadvantaged business concerns. Contracts for which this preference shall be given shall include contracts to carry out activities for the environmental restoration and mitigation at military installations to be closed or realigned. (b) DEFINITIONS.-In this section:

(1) The term "small business concern" means a business concern meeting the requirements of section 3 of the Small Business Act (15 U.S.C. 632).

(2) The term "small disadvantaged business concern❞ means the business concerns referred to in section 8(d)(1) of such Act (15 U.S.C. 637(d)(1)).

(3) The term "base closure law" includes section 2687 of title 10, United States Code.

DIVISION C-DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZA

TIONS AND OTHER AUTHORIZATIONS

SEC. 3159. [42 U.S.C. 7256] CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

(a) GOAL.-Except as provided in subsection (c), a goal of 5 percent of the amount described in subsection (b) shall be the objective of the Department of Energy in carrying out national security programs of the Department in each of fiscal years 1994 through 2000

for the total combined amount obligated for contracts and subcontracts entered into with

(1) small business concerns, including mass media and advertising firms, owned and controlled by socially and economically disadvantaged individuals (as such term is used in section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and regulations issued under that section), the majority of the earnings of which directly accrue to such individuals;

(2) historically Black colleges and universities, including any nonprofit research institution that was an integral part of such a college or university before November 14, 1986; and

(3) minority institutions (as defined in section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 1135d-5(3))), which, for the purposes of this section, shall include Hispanicserving institutions (as defined in section 316(b)(1) of such Act (20 U.S.C. 1059c(b)(1))).

(b) AMOUNT.—(1) Except as provided in paragraph (2), the requirements of subsection (a) for any fiscal year apply to the combined total of the funds obligated for contracts entered into by the Department of Energy pursuant to competitive procedures for such fiscal year for purposes of carrying out national security programs of the Department.

(2) In computing the combined total of funds under paragraph (1) for a fiscal year, funds obligated for such fiscal year for contracts for naval reactor programs shall not be included.

(c) APPLICABILITY. Subsection (a) does not apply—

(1) to the extent to which the Secretary of Energy determines that compelling national security considerations require otherwise; and

(2) if the Secretary notifies the Congress of such a determination and the reasons for the determination.