MODIFICATION OF AUTHORITY OF THE DEPARTMENT OF DEFENSE TO CARRY OUT CERTAIN PROTOTYPE PROJECTS.

SEC. 842. MODIFICATION OF AUTHORITY OF THE DEPARTMENT OF DEFENSE TO CARRY OUT CERTAIN PROTOTYPE PROJECTS. Section 4022 of title 10, United States Code, is amended— (1) in subsection (a)(2)— (A) by striking “, and any follow-on production contract or transaction that is awarded pursuant to subsection (f),” both places it appears; (B) in subparagraph (A)(ii), by striking “; and” and inserting a semicolon; (C) in subparagraph (B)(ii), by striking the period at the end and inserting “; and”; and (D) by adding at the end the following new subparagraph: “(C) may be exercised for a transaction for a follow-on production contract or transaction that is awarded pursuant to subsection (f) and expected to cost the Department of Defense in excess of $100,000,000 (including all options) only if a covered official— “(i) determines in writing that— “(I) the requirements of subsection (d) will be met; and “(II) the use of the authority of this section is essential to meet critical national security objectives; and “(ii) notifies the congressional defense committees in writing of the determinations required under clause (i) at the time such authority is exercised.” ; (2) in subsection (e)— (A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (4), respectively; (B) by inserting before paragraph (2), as redesignated by subparagraph (A), the following new paragraph: “(1) The term ‘covered official’ means— “(A) a service acquisition executive; “(B) the Director of the Defense Advanced Research Projects Agency; “(C) the Director of the Missile Defense Agency; “(D) the Undersecretary of Defense for Acquisition and Sustainment; or “(E) the Undersecretary of Defense for Research and Engineering.” ; and (C) by inserting after paragraph (2), as so redesignated, the following new paragraph: “(3) The term ‘service acquisition executive’ has the meaning given that term in section 101(a) of this title.” ; and (3) in subsection (f)(2), in the matter preceding subparagraph (A), by striking “of section 2304 of this title,” and inserting the following: “of chapter 221 of this title and even if explicit notification was not listed within the request for proposal for the transaction”.