INSIGHTi
FY2024 NDAA: Department of Defense
Acquisition Policy
August 17, 2023
Introduction
The Defense Acquisition System (DAS) is the process through which the U.S. Department of Defense
(DOD) develops and buys goods and services from contractors. The process is based on statute and
regulation. The process involves numerous activities, including design, engineering, construction, testing,
deployment, sustainment, and disposal of items purchased from a contractor. This product provides an
overview of selected acquisition-related provisions in the House- and Senate-passed versions of a
National Defense Authorization Act for Fiscal Year 2024 (NDAA; H.R. 2670 and S. 2226). For more
background on defense acquisitions, see CRS Report RL34026, Defense Acquisitions: How DOD
Acquires Weapon Systems and Recent Efforts to Reform the Process.
Legislative Proposals
Congress may incorporate provisions related to the defense acquisition process or individual acquisition
programs in multiple titles in an NDAA. A recurring NDAA title (i.e., Title VIII of Division A) typically
addresses acquisition policy, acquisition management, and related matters. In general, Congress uses the
NDAA to establish or disestablish, amend, or direct study of elements of and processes related to defense
acquisitions. For example, the FY2022 NDAA established a commission to study the effectiveness of the
department’s Planning, Programming, Budgeting, and Execution (PPBE)— an internal strategic planning
process for allocating resources among the military departments, defense agencies, and other components.
The House and Senate-passed versions of an FY2024 NDAA include multiple proposals pertaining to
acquisition policy, including those related to capability development, DOD contracting, and mitigating
foreign influence over DOD contractors. Table 1 below summarizes selected provisions from H.R. 2670
and S. 2226.
Table 1. Selected Acquisition Policy Proposals in the FY2024 NDAA Bills
House-Passed H.R. 2670
Senate-Passed S. 2226
Proposals Related to DOD’s Capability Development Process
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House-Passed H.R. 2670
Senate-Passed S. 2226
No similar provision.
Sec. 802 would require DOD to develop a more
“streamlined” and modernized capability development
requirements process, aligned with the Adaptive Acquisition
Framework, by 2025.
Sec. 803 would require the military services to designate a
No similar provision.
“Principal Transition Advisor” to support service secretaries
with the transition of new technologies from research and
development to fielding. This would include interfacing with
relevant DOD innovation organizations and program
managers.
No similar provision.
Sec. 803 would give the Director of the Strategic
Capabilities Office (SCO) the authority to conduct
acquisition activities, including the authority to negotiate
memoranda of agreement with DOD components and
military departments to procure capabilities, equipment, and
services on behalf of SCO.
Sec. 851 would require DOD to launch a pilot program to
No similar provision.
conduct competitions to procure and field “attritable
systems that solve urgent operational needs.”
No similar provision.
Sec. 811 would give Combatant Commanders rapid and
streamlined contracting authorities for certain time-sensitive
and urgent situations.
Proposals Related to DOD Contracting
Sec. 804 would require DOD to launch a pilot program to
No similar provision.
determine whether certain contractors that unsuccessful y
protest a contract bid loss should be required to reimburse
DOD for the costs to the government of conducting the
protest.
No similar provision.
Sec. 806 would require a DOD study on the feasibility and
advisability of establishing a default commercial
determination for the products and services acquired by
DOD.
No similar provision.
Sec. 815 would exempt all software contracts and
subcontracts from Earned Value Management (EVM)
requirements in the Defense Federal Acquisition Regulation
Supplement (DFARS), and would raise the dol ar threshold
for EVM requirements.
No similar provision.
Sec. 817 would require DOD to launch a pilot program
providing higher progress payment rates to incentivize
contractors to meet certain criteria, including meeting small
business subcontracting goals and adhering to delivery
schedule.
Sec. 844 would amend the Small Business Act to provide
measures to encourage DOD contractors to provide more
timely payments to subcontractors.
Proposals Related to Mitigating Foreign Influence in DOD Contracting
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House-Passed H.R. 2670
Senate-Passed S. 2226
Sec. 808 would require contractors providing consulting
Sec 812 would amend P.L. 113-291; 10 11 U.S.C. 4871 to
services to DOD to disclose any previous contracts or
add additional restrictions and procedures for preventing
financial awards from covered entities, including entities with covered persons or entities from contracting with DOD.
connections to the governments of the People’s Republic of
China or the Russian Federation, as well as several entity
lists maintained by the Department of Commerce.
Sec. 819 would increase DOD requirements to confirm that
contractors do not have conflicts of interest, including
contracts, with covered foreign entities, including entities
with connections to the governments of the People’s
Republic of China or the Russian Federation. Contractors
found to have conflicts of interest with covered entities
would be subject to additional surveillance.
Source: CRS analysis of legislation on Congress.gov
Discussion
Proposals Related to DOD’s Capability Development Process
Some defense experts and policymakers have argued for a need for DOD to improve and/or accelerate its
acquisition processes for new, innovative technologies.
Several provisions in the proposed versions of an FY2024 NDAA aim to modify acquisition processes,
delegate authorities and responsibilities, and create new organizations to improve both how DOD
develops capabilities and the speed at which such capabilities are developed and fielded.
Proposals Related to DOD Contracting
DOD contracting is a longstanding issue of interest for Congress. Media coverage in 2023 concerning
DOD contract pricing and subcontractor cash flow has generated congressional interest in the topic.
The versions of an FY2024 NDAA contains several provisions related to DOD contractor transparency
and adherence to regulation.
Proposals Related to Mitigating Foreign Influence in DOD Contracting
Some Members of Congress have expressed interest in preventing adversarial governments from having
financial and other ties to DOD contractors, particularly after DOD identified China as the “pacing
challenge” (i.e., the challenge against which to “pace” armed forces development) as well as department
efforts to prevent foreign ownership, control, and influence (FOCI) in its supply chain.
Such interest is reflected in proposed FY2024 NDAA provisions that would increase reporting
requirements regarding FOCI and increase restrictions on contractors found to have FOCI risk.
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Author Information
Alexandra G. Neenan
Analyst in U.S. Defense Infrastructure Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
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