TECHNOLOGY PROTECTION FEATURES ACTIVITIES.

SEC. 831. TECHNOLOGY PROTECTION FEATURES ACTIVITIES. (a) In General.—Section 2357 of title 10, United States Code, is amended— (1) in subsection (b)— (A) by inserting “(1)” before “Any”; (B) by adding at the end the following new paragraph: “(2) The Secretary may deem the portion of the costs of the contractor described in paragraph (1) with respect to a designated system as allowable independent research and development costs under the regulations issued under section 2372 of this title if— “(A) the designated system receives Milestone B approval; and “(B) the Secretary determines that doing so would further the purposes of this section.” ; and (2) in subsection (c)— (A) by redesignating paragraph (2) as paragraph (4); and (B) by inserting after paragraph (1) the following new paragraphs: “(2) The term ‘independent research and development costs’ has the meaning given the term in section 31.205-18 of title 48, Code of Federal Regulations. “(3) The term ‘Milestone B approval’ has the meaning given the term in section 2366(e)(7) of this title.” . (b) [10 U.S.C. 4067 note] Conforming Regulations.—Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to conform with section 2357 of title 10, United States Code, as amended by subsection (a).