§ 221. Future-years defense program: submission to Congress; consistency in budgeting

• (a) The Secretary of Defense shall submit to Congress each year, not later than five days after the date on which the President’s budget is submitted to Congress that year under section 1105(a) of title 31 , a future-years defense program (including associated annexes) reflecting the estimated expenditures and proposed appropriations included in that budget. Any such future-years defense program shall cover the fiscal year with respect to which the budget is submitted and at least the four succeeding fiscal years.
• (b)
  • (1) The Secretary of Defense shall ensure that amounts described in subparagraph (A) of paragraph (2) for any fiscal year are consistent with amounts described in subparagraph (B) of paragraph (2) for that fiscal year.
  • (2) Amounts referred to in paragraph (1) are the following:
    • (A) The amounts specified in program and budget information submitted to Congress by the Secretary in support of expenditure estimates and proposed appropriations in the budget submitted to Congress by the President under section 1105(a) of title 31 for any fiscal year, as shown in the future-years defense program submitted pursuant to subsection (a).
    • (B) The total amounts of estimated expenditures and proposed appropriations necessary to support the programs, projects, and activities of the Department of Defense included pursuant to paragraph (5) of section 1105(a) of title 31 in the budget submitted to Congress under that section for any fiscal year.
• (c) Nothing in this section shall be construed to prohibit the inclusion in the future-years defense program of amounts for management contingencies, subject to the requirements of subsection (b).
• (d)
  • (1) The Secretary of Defense shall make available to Congress, the Congressional Budget Office, the Comptroller General of the United States, and the Congressional Research Service each future-years defense program under this section as follows:
    • (A) By making such program available electronically in the form of an unclassified electronic database.
    • (B) By delivering printed copies of such program to the congressional defense committees.
  • (2) In the event inclusion of classified material in a future-years defense program would otherwise render the totality of the program classified for purposes of this subsection—
    • (A) such program shall be made available to Congress in unclassified form, with such material attached as a classified annex; and
    • (B) such annex shall be submitted to the congressional defense committees, the Congressional Budget Office, the Comptroller General of the United States, and the Congressional Research Service.
• (e) Each future-years defense program under this subsection shall be accompanied by a certification by the Under Secretary of Defense (Comptroller), in the case of the Department of Defense, and the comptroller of each military department, in the case of such military department, that any information entered into the Standard Data Collection System of the Department of Defense, the Comptroller Information System, or any other data system, as applicable, for purposes of assembling such future-years defense program was accurate.

§ 222. Future-years mission budget

• (a) The Secretary of Defense shall submit to Congress for each fiscal year a future-years mission budget for the military programs of the Department of Defense. That budget shall be submitted for any fiscal year with the future-years defense program submitted under section 221 of this title .
• (b) The future-years mission budget shall be consistent with the future-years defense program required under section 221 of this title . In the future-years mission budget, the military programs of the Department of Defense shall be organized on the basis of major force programs.
• (c) The requirement in subsection (a) is in addition to the requirements in any other provision of law regarding the format for the presentation regarding military programs of the Department of Defense in the budget submitted pursuant to section 1105 of title 31 for any fiscal year.

§ 222a. Unfunded priorities of the armed forces and combatant commands: annual report

• (a) Not later than 10 days after the date on which the budget of the President for a fiscal year is submitted to Congress pursuant to section 1105 of title 31 , each officer specified in subsection (b) shall submit to the Secretary of Defense and the Chairman of the Joint Chiefs of Staff, and to the congressional defense committees, a report on the unfunded priorities of the armed force or forces or combatant command under the jurisdiction or command of such officer.
• (b) The officers specified in this subsection are the following:
  • (1) The Chief of Staff of the Army.
  • (2) The Chief of Naval Operations.
  • (3) The Chief of Staff of the Air Force.
  • (4) The Commandant of the Marine Corps.
  • (5) The commanders of the combatant commands established under section 161 of this title .
• (c)
  • (1) Each report under this subsection shall specify, for each unfunded priority covered by such report, the following:
    • (A) A summary description of such priority, including the objectives to be achieved if such priority is funded (whether in whole or in part).
    • (B) The additional amount of funds recommended in connection with the objectives under subparagraph (A).
    • (C) Account information with respect to such priority, including the following (as applicable):
      • (i) Line Item Number (LIN) for applicable procurement accounts.
      • (ii) Program Element (PE) number for applicable research, development, test, and evaluation accounts.
      • (iii) Sub-activity group (SAG) for applicable operation and maintenance accounts.
  • (2) Each report shall present the unfunded priorities covered by such report as follows:
    • (A) In overall order of urgency of priority.
    • (B) In overall order of urgency of priority among unfunded priorities (other than covered military construction projects).
    • (C) In overall order of urgency of priority among covered military construction projects.
• (d) In this section:
  • (1) The term “unfunded priority”, in the case of a fiscal year, means a program, activity, or mission requirement, including a covered military construction project, that—
    • (A) is not funded in the budget of the President for the fiscal year as submitted to Congress pursuant to section 1105 of title 31 ;
    • (B) is necessary to fulfill a requirement associated with an operational or contingency plan of a combatant command or other validated requirement; and
    • (C) would have been recommended for funding through the budget referred to in subparagraph (1) by the officer submitting the report required by subsection (a) in connection with the budget if—
      • (i) additional resources been 1 1 So in original. Probably should be preceded by “had”. available for the budget to fund the program, activity, or mission requirement; or
      • (ii) the program, activity, or mission requirement has emerged since the budget was formulated.
  • (2) The term “covered military construction project”, in connection with a fiscal year, means a military construction project that—
    • (A) is included in any fiscal year of the future-years defense program under section 221 of this title that is submitted in connection with the budget of the President for the fiscal year, and is executable in the fiscal year; or
    • (B) is considered by the commander of a combatant command referred to in subsection (b)(5) to be an urgent need, and is executable in the fiscal year.

§ 222b. Unfunded priorities of the Missile Defense Agency: annual report

• (a) Not later than 10 days after the date on which the budget of the President for a fiscal year is submitted to Congress pursuant to section 1105 of title 31 , the Director of the Missile Defense Agency shall submit to the Secretary of Defense and the Chairman of the Joint Chiefs of Staff, and to the congressional defense committees, a report on the unfunded priorities of the Missile Defense Agency.
• (b)
  • (1) Each report under subsection (a) shall specify, for each unfunded priority covered by such report, the following:
    • (A) A summary description of such priority, including the objectives to be achieved if such priority is funded (whether in whole or in part).
    • (B) The additional amount of funds recommended in connection with the objectives under subparagraph (A).
    • (C) Account information with respect to such priority, including the following (as applicable):
      • (i) Line Item Number (LIN) for applicable procurement accounts.
      • (ii) Program Element (PE) number for applicable research, development, test, and evaluation accounts.
      • (iii) Sub-activity group (SAG) for applicable operation and maintenance accounts.
  • (2) Each report under subsection (a) shall present the unfunded priorities covered by such report in order of urgency of priority.
• (c) In this section, the term “unfunded priority”, in the case of a fiscal year, means a program, activity, or mission requirement of the Missile Defense Agency that—
  • (1) is not funded in the budget of the President for the fiscal year as submitted to Congress pursuant to section 1105 of title 31 , United States Code;
  • (2) is necessary to fulfill a requirement associated with an operational or contingency plan of a combatant command or other validated requirement; and
  • (3) would have been recommended for funding through the budget referred to in paragraph (1) by the Director of the Missile Defense Agency in connection with the budget if additional resources had been available for the budget to fund the program, activity, or mission requirement.

§ 222c. Armed forces: Out-Year Unconstrained Total Munitions Requirements; Out-Year inventory numbers

• (a) At the same time each year that the budget for the fiscal year beginning in such year is submitted to Congress pursuant to section 1105(a) of title 31 , the chief of staff of each armed force (other than the Coast Guard) shall submit to the congressional defense committees a report setting forth for such armed force each of the following for such fiscal year, broken out as specified in subsection (c):
  • (1) The Out-Year Unconstrained Total Munitions Requirement.
  • (2) The Out-Year inventory numbers.
• (b) The responsibility of the chief of staff of an armed force in subsection (a) to submit a report may not be delegated outside the armed force concerned.
• (c) The Out-Year Unconstrained Total Munitions Requirement and Out-Year inventory numbers for an armed force for a fiscal year pursuant to subsection (a) shall include specific inventory objective requirements for each variant of munitions with respect to each of the following:
  • (1) Combat Requirement, broken out by operation plan (OPLAN).
  • (2) Current Operation/Forward Presence Requirement.
  • (3) Strategic Readiness Requirement.
  • (4) Homeland Defense.
  • (5) Training and Testing Requirement.
  • (6) Total Out-Year Unconstrained Total Munitions Requirement, calculated in accordance with the implementation guidance described in subsection (d).
  • (7) Out-year worldwide inventory.
• (d) In submitting information pursuant to subsection (a) for a fiscal year, the chief of staff of each armed force shall describe and explain the munitions requirements process implementation guidance developed by the Under Secretary of Defense for Acquisition and Sustainment and used by such armed force for the munitions requirements process for such armed force for that fiscal year.
• (e) In this section:
  • (1) The term “chief of staff”, with respect to the Marine Corps, means the Commandant of the Marine Corps.
  • (2) The term “Out-Year Unconstrained Total Munitions Requirement” has the meaning given that term in and for purposes of Department of Defense Instruction 3000.04, or any successor instruction.

§ 223. Ballistic missile defense programs: program elements

• (a) In the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with the budget of the President under section 1105(a) of title 31 ), the amount requested for activities of the Missile Defense Agency shall be set forth in accordance with such program elements as the President may specify.
• (b)
  • (1) The Secretary of Defense shall ensure that each ballistic missile defense program that enters engineering and manufacturing development is assigned a separate, dedicated program element.
  • (2) In this subsection, the term “engineering and manufacturing development” means the period in the course of an acquisition program during which the primary objectives are to—
    • (A) translate the most promising design approach into a stable, interoperable, producible, supportable, and cost-effective design;
    • (B) validate the manufacturing or production process; and
    • (C) demonstrate system capabilities through testing.
• (c) The amount requested for a fiscal year for any program element specified for that fiscal year pursuant to subsection (a) shall include requests for the amounts necessary for the management and support of the programs, projects, and activities contained in that program element.

§ 223a. Ballistic missile defense programs: procurement

• (a) In the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with the budget of the President under section 1105(a) of title 31 ), the Secretary of Defense shall specify, for each ballistic missile defense system element for which the Missile Defense Agency is engaged in planning for production and initial fielding, the following information:
  • (1) The production rate capabilities of the production facilities planned to be used for production of that element.
  • (2) The potential date of availability of that element for initial fielding.
  • (3) The estimated date on which the administration of the acquisition of that element is to be transferred from the Director of the Missile Defense Agency to the Secretary of a military department.
• (b) The Secretary of Defense shall include in the future-years defense program submitted to Congress each year under section 221 of this title an estimate of the amount necessary for procurement for each ballistic missile defense system element, together with a discussion of the underlying factors and reasoning justifying the estimate.
• (c) The Director of the Missile Defense Agency shall include in the performance criteria prescribed for planned development phases of the ballistic missile defense system and its elements a description of the intended effectiveness of each such phase against foreign adversary capabilities.

§ 224. Ballistic missile defense programs: display of amounts for research, development, test, and evaluation

• (a) Any amount in the budget submitted to Congress under section 1105 of title 31 for any fiscal year for research, development, test, and evaluation for the integration of a ballistic missile defense element into the overall ballistic missile defense architecture shall be set forth under the account of the Department of Defense for Defense-wide research, development, test, and evaluation and, within that account, under the subaccount (or other budget activity level) for the Missile Defense Agency.
• (b)
  • (1) The Secretary of Defense shall establish criteria for the transfer of responsibility for a ballistic missile defense program from the Director of the Missile Defense Agency to the Secretary of a military department. The criteria established for such a transfer shall, at a minimum, address the following:
    • (A) The technical maturity of the program.
    • (B) The availability of facilities for production.
    • (C) The commitment of the Secretary of the military department concerned to procurement funding for that program, as shown by funding through the future-years defense program and other defense planning documents.
  • (2) The Secretary shall submit the criteria established, and any modifications to those criteria, to the congressional defense committees.
• (c) Before responsibility for a ballistic missile defense program is transferred from the Director of the Missile Defense Agency to the Secretary of a military department, the Secretary of Defense shall submit to the congressional defense committees notice in writing of the Secretary’s intent to make that transfer. The Secretary shall include with such notice a certification that the program has met the criteria established under subsection (b) for such a transfer. The transfer may then be carried out after the end of the 60-day period beginning on the date of such notice.
• (d) When a ballistic missile defense program is transferred from the Missile Defense Agency to the Secretary of a military department in accordance with this section, the Secretary of Defense shall ensure that all appropriate conforming changes are made to proposed or projected funding allocations in the future-years defense program under section 221 of this title and other Department of Defense program, budget, and planning documents.
• (e) The Secretary of Defense shall ensure that, before a ballistic missile defense program is transferred from the Director of the Missile Defense Agency to the Secretary of a military department, roles and responsibilities for research, development, test, and evaluation related to system improvements for that program are clearly delineated.

§ 225. Acquisition accountability reports on the ballistic missile defense system

• (a)
  • (1) In accordance with paragraph (2), the Director of the Missile Defense Agency shall establish and maintain an acquisition baseline for—
    • (A) each program element of the ballistic missile defense system, as specified in section 223 of this title ; and
    • (B) each designated major subprogram of such program elements.
  • (2) The Director shall establish an acquisition baseline required by paragraph (1) before the date on which the program element or major subprogram enters—
    • (A) engineering and manufacturing development (or its equivalent); and
    • (B) production and deployment.
  • (3) Except as provided by subsection (d), the Director may not adjust or revise an acquisition baseline established under this section.
• (b) Each acquisition baseline required by subsection (a) for a program element or major subprogram shall include the following:
  • (1) A comprehensive schedule, including—
    • (A) research and development milestones;
    • (B) acquisition milestones, including design reviews and key decision points;
    • (C) key test events, including ground and flight tests and ballistic missile defense system tests;
    • (D) delivery and fielding schedules;
    • (E) quantities of assets planned for acquisition and delivery in total and by fiscal year; and
    • (F) planned contract award dates.
  • (2) A detailed technical description of—
    • (A) the capability to be developed, including hardware and software;
    • (B) system requirements, including performance requirements;
    • (C) how the proposed capability satisfies a capability identified by the commanders of the combatant commands on a prioritized capabilities list;
    • (D) key knowledge points that must be achieved to permit continuation of the program and to inform production and deployment decisions; and
    • (E) how the Director plans to improve the capability over time.
  • (3) A cost estimate, including—
    • (A) a life-cycle cost estimate that separately identifies the costs regarding research and development, procurement, military construction, operations and sustainment, and disposal;
    • (B) program acquisition unit costs for the program element;
    • (C) average procurement unit costs and program acquisition costs for the program element; and
    • (D) an identification of when the document regarding the program joint cost analysis requirements description is scheduled to be approved.
  • (4) A test baseline summarizing the comprehensive test program for the program element or major subprogram outlined in the integrated master test plan.
• (c)
  • (1) Not later than February 15 of each year, the Director shall submit to the congressional defense committees a report on the acquisition baselines required by subsection (a).
  • (2)
    • (A) The first report under paragraph (1) shall set forth each acquisition baseline required by subsection (a) for a program element or major subprogram.
    • (B) Each subsequent report under paragraph (1) shall include—
      • (i) any new acquisition baselines required by subsection (a) for a program element or major subprogram; and
      • (ii) with respect to an acquisition baseline that was previously included in a report under paragraph (1), an identification of any changes or variances made to the elements described in subsection (b) for such acquisition baseline, as compared to—
        • (I) the initial acquisition baseline for such program element or major subprogram; and
        • (II) the acquisition baseline for such program element or major subprogram that was submitted in the report during the previous year.
  • (3) Each report under this subsection shall be submitted in unclassified form, but may include a classified annex.
• (d) The Director may adjust or revise an acquisition baseline established under this section if the Director submits to the congressional defense committees notification of—
  • (1) a justification for such adjustment or revision;
  • (2) the specific adjustments or revisions made to the acquisition baseline, including to the elements described in subsection (b); and
  • (3) the effective date of the adjusted or revised acquisition baseline.
• (e) The Director shall ensure that each life-cycle cost estimate included in an acquisition baseline pursuant to subsection (b)(3)(A) includes—
  • (1) all of the operations and sustainment costs for which the Director is responsible; and
  • (2) a description of the operations and sustainment functions and costs for which a military department is responsible.

§ 226. Special operations forces: display of service-common and other support and enabling capabilities

• (a) The Secretary shall include, in the budget materials submitted to Congress under section 1105 of title 31 for fiscal year 2021 and any subsequent fiscal year, a consolidated budget justification display showing service-common and other support and enabling capabilities for special operations forces requested by a military service or Defense Agency. Such budget justification display shall include any amount for service-common or other capability development and acquisition, training, operations, pay, base operations sustainment, and other common services and support.
• (b) In this section, the term “service-common and other support and enabling capabilities” means capabilities provided in support of special operations that are not reflected in Major Force Program–11 or designated as special operations forces-peculiar.

§ 229. Programs for combating terrorism: display of budget information

• (a) The Secretary of Defense shall submit to Congress, as a part of the documentation that supports the President’s annual budget for the Department of Defense, a consolidated budget justification display, in classified and unclassified form, that includes all programs and activities of the Department of Defense combating terrorism program.
• (b) The budget display under subsection (a) shall include—
  • (1) the amount requested, by appropriation and functional area, for each of the program elements, projects, and initiatives that support the Department of Defense combating terrorism program, with supporting narrative descriptions and rationale for the funding levels requested; and
  • (2) a summary, to the program element and project level of detail, of estimated expenditures for the current year, funds requested for the budget year, and budget estimates through the completion of the current future-years defense plan for the Department of Defense combating terrorism program.
• (c) As part of the budget display under subsection (a) for any fiscal year, the Secretary shall identify and explain—
  • (1) any inconsistencies between (A) the information submitted under subsection (b) for that fiscal year, and (B) the information provided to the Director of the Office of Management and Budget in support of the annual report of the President to Congress on funding for executive branch counterterrorism and antiterrorism programs and activities for that fiscal year in accordance with section 1051(b) of the National Defense Authorization Act for Fiscal Year 1998 ( 31 U.S.C. 1113 note); and
  • (2) any inconsistencies between (A) the execution, during the previous fiscal year and the current fiscal year, of programs and activities of the Department of Defense combating terrorism program, and (B) the funding and specification for such programs and activities for those fiscal years in the manner provided by Congress (both in statutes and in relevant legislative history).
• (d) In this section, the term “Department of Defense combating terrorism program” means the programs, projects, and activities of the Department of Defense related to combating terrorism inside and outside the United States.
• (e) The requirement to submit a budget justification display under this section shall terminate on December 31, 2020 .

§ 231. Budgeting for construction of naval vessels: annual plan and certification

• (a) The Secretary of Defense shall include with the defense budget materials for a fiscal year each of the following:
  • (1) A plan for the construction of naval vessels developed in accordance with this section for each of the following classes of ships: and 1 1 So in original.
    • (A) Combatant and support vessels.
    • (B) Auxiliary vessels.
  • (2) A certification by the Secretary that both the budget for that fiscal year and the future-years defense program submitted to Congress in relation to such budget under section 221 of this title provide for funding of the construction of naval vessels at a level that is sufficient for the procurement of the vessels provided for in the plan under paragraph (1) on the schedule provided in that plan.
• (b)
  • (1) The annual naval vessel construction plan developed for a fiscal year for purposes of subsection (a)(1) shall be designed so that the naval vessel force provided for under that plan supports the national security strategy of the United States as set forth in the most recent national security strategy report of the President under section 108 of the National Security Act of 1947 ( 50 U.S.C. 3043 ), except that, if at the time such plan is submitted with the defense budget materials for that fiscal year, a national security strategy report required under such section 108 has not been submitted to Congress as required by paragraph (2) or paragraph (3), if applicable, of subsection (a) of such section, then such annual plan shall be designed so that the naval vessel force provided for under that plan supports the ship force structure recommended in the report of the most recent quadrennial defense review.
  • (2) Each such naval vessel construction plan shall include the following:
    • (A) A detailed program for the construction of combatant and support vessels for the Navy over the next 30 fiscal years.
    • (B) A detailed program for the construction of auxiliary vessels for the Navy over the next 30 fiscal years.
    • (C) A description of the necessary naval vessel force structure and capabilities to meet the requirements of the national security strategy of the United States or the most recent quadrennial defense review, whichever is applicable under paragraph (1).
    • (D) The estimated levels of annual funding by ship class in both graphical and tabular form necessary to carry out the program, together with a discussion of the procurement strategies on which such estimated levels of annual funding are based.
    • (E) The estimated total cost of construction for each vessel used to determine estimated levels of annual funding under subparagraph (D).
    • (F) The estimated operations and sustainment costs required to support the vessels delivered under the naval vessel construction plan.
• (c) If the annual naval vessel construction plan for a fiscal year under subsection (b) does not result in a force structure or capabilities that meet the requirements identified in subsection (b)(2)(B), the Secretary shall include with the defense budget materials for that fiscal year an assessment of the extent of the strategic and operational risk to national security associated with the reduced force structure of naval vessels over the period of time that the required force structure or capabilities are not achieved. Such assessment shall include an analysis of whether the risks are acceptable, and plans to mitigate such risks. Such assessment shall be coordinated in advance with the commanders of the combatant commands and the Nuclear Weapons Council under section 179 of this title .
• (d) Not later than 60 days after the date on which the congressional defense committees receive the plan under subsection (a)(1), the Director of the Congressional Budget Office shall submit to such committees a report assessing the sufficiency of the estimated levels of annual funding included in such plan with respect to the budget submitted during the year in which the plan is submitted and the future-years defense program submitted under section 221 of this title .
• (e)
  • (1) If the Secretary of Defense does not include with the defense budget materials for a fiscal year the plan and certification under subsection (a), the Secretary of the Navy may not use more than 50 percent of the funds described in paragraph (2) during the fiscal year in which such materials are submitted until the date on which such plan and certification are submitted to the congressional defense committees.
  • (2) The funds described in this paragraph are funds made available to the Secretary of the Navy for operation and maintenance, Navy, for emergencies and extraordinary expenses.
• (f) In this section:
  • (1) The term “budget”, with respect to a fiscal year, means the budget for that fiscal year that is submitted to Congress by the President under section 1105(a) of title 31 .
  • (2) The term “defense budget materials”, with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year.
  • (3) The term “quadrennial defense review” means the review of the defense programs and policies of the United States that is carried out every four years under section 118 1 1 See References in Text note below. of this title.
  • (4) The term “combatant and support vessel” means any commissioned ship built or armed for naval combat or any naval ship designed to provide support to combatant ships and other naval operations. Such term does not include patrol coastal ships, non-commissioned combatant craft specifically designed for combat roles, or ships that are designated for potential mobilization.
  • (5) The term “auxiliary vessel” means any ship designed to operate in the open ocean in a variety of sea states to provide general support to either combatant forces or shore based establishments.

§ 233. Operation and maintenance budget presentation

• (a) In any case in which the amount requested in the President’s budget for a fiscal year for a Department of Defense operation and maintenance program, project, or activity is different from the amount appropriated for that program, project, or activity for the current year, the O&M justification documents supporting that budget shall identify that appropriated amount and the difference between that amount and the amount requested in the budget, stated as an amount and as a percentage.
• (b) In the O&M justification documents for the Navy for any fiscal year, amounts requested for ship depot maintenance and amounts requested for intermediate ship maintenance shall be identified and distinguished.
• (c) In this section:
  • (1) The term “O&M justification documents” means Department of Defense budget justification documents with respect to accounts for operation and maintenance submitted to the congressional defense committees in support of the Department of Defense component of the President’s budget for any fiscal year.
  • (2) The term “President’s budget” means the budget of the President submitted to Congress under section 1105 of title 31 for any fiscal year.
  • (3) The term “current year” means the fiscal year during which the President’s budget is submitted in any year.

§ 234. POW/MIA activities: display of budget information

• (a) The Secretary of Defense shall submit to Congress, as a part of the defense budget materials for a fiscal year, a consolidated budget justification display, in classified and unclassified form, that covers all programs and activities of Department of Defense POW/MIA accounting and recovery organizations.
• (b) The budget display under subsection (a) for a fiscal year shall include for each such organization the following:
  • (1) A statement of what percentage of the requirements originally requested by the organization in the budget review process that the budget requests funds for.
  • (2) A summary of actual or estimated expenditures by that organization for the fiscal year during which the budget is submitted and for the fiscal year preceding that year.
  • (3) The amount in the budget for that organization.
  • (4) A detailed explanation of the shortfalls, if any, in the funding of any requirement shown pursuant to paragraph (1), when compared to the amount shown pursuant to paragraph (3).
  • (5) The budget estimate for that organization for the five fiscal years after the fiscal year for which the budget is submitted.
• (c) In this section, the term “Department of Defense POW/MIA accounting and recovery organization” means any of the following (and any successor organization):
  • (1) The Defense Prisoner of War/Missing Personnel Office (DPMO).
  • (2) The Joint POW/MIA Accounting Command (JPAC).
  • (3) The Armed Forces DNA Identification Laboratory (AFDIL).
  • (4) The Life Sciences Equipment Laboratory (LSEL) of the Air Force.
  • (5) Any other element of the Department of Defense the mission of which (as designated by the Secretary of Defense) involves the accounting for and recovery of members of the armed forces who are missing in action or prisoners of war or who are unaccounted for.
• (d) In this section:
  • (1) The term “defense budget materials”, with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year.
  • (2) The term “budget”, with respect to a fiscal year, means the budget for that fiscal year that is submitted to Congress by the President under section 1105(a) of title 31 .

§ 235. Procurement of contract services: specification of amounts requested in budget

• (a) In the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with the budget of the President under section 1105(a) of title 31 ), the Secretary of Defense shall include the information described in subsection (b) with respect to the procurement of contract services.
• (b) For each budget account, the materials submitted shall clearly and separately identify—
  • (1) the amount requested for the procurement of contract services for each Department of Defense component, installation, or activity; and
  • (2) the number of full-time contractor employees (or the equivalent of full-time in the case of part-time contractor employees) projected and justified for each Department of Defense component, installation, or activity based on the inventory of contracts for services required by subsection (c) of section 2330a of this title and the review required by subsection (e) of such section.
• (c) In this section, the term “contract services”—
  • (1) means services from contractors; but
  • (2) excludes services relating to research and development and services relating to military construction.

§ 236. Personal protection equipment procurement: display of budget information

• (a) The Secretary of Defense shall submit to Congress, as a part of the defense budget materials for each fiscal year after fiscal year 2014, a consolidated budget justification display that covers all programs and activities associated with the procurement of personal protection equipment during the period covered by the future-years defense program submitted in that fiscal year under section 221.
• (b) The consolidated budget justification display under subsection (a) for a fiscal year shall include the following:
  • (1) The amount for personal protection equipment included in both the base budget of the President and any overseas contingency operations budget of the President.
  • (2) A brief description of each category of personal protection equipment for each military department planned to be procured and developed.
  • (3) For each category planned to be procured using funds made available for operation and maintenance (whether under the base budget or any overseas contingency operations budget)—
    • (A) the relevant appropriations account, budget activity, and subactivity group for the category; and
    • (B) the funding profile for the fiscal year as requested, including cost and quantities, and an estimate of projected investments or procurements for each of the subsequent five fiscal years.
  • (4) For each category planned to be developed using funds made available for research, development, test, and evaluation (whether under the base budget or any overseas contingency operations budget)—
    • (A) the relevant appropriations account, program, project or activity; program element number, and line number; and
    • (B) the funding profile for the fiscal year as requested and an estimate of projected investments for each of the subsequent five fiscal years.
• (c) In this section:
  • (1) The terms “budget” and “defense budget materials” have the meaning given those terms in section 234 of this title .
  • (2) The term “category of personal protection equipment” means the following:
    • (A) Body armor components.
    • (B) Combat helmets.
    • (C) Combat protective eyewear.
    • (D) Other items as determined appropriate by the Secretary.

§ 237. Embedded mental health providers of the reserve components: display of budget information

The Secretary of Defense shall submit to Congress, as a part of the documentation that supports the President’s annual budget for the Department of Defense, a budget justification display with respect to embedded mental health providers within each reserve component, including the amount requested for each such component.

§ 238. Cyber mission forces: program elements

• (a) The Secretary of Defense shall submit to Congress, as a part of the defense budget materials for fiscal year 2017 and each fiscal year thereafter, a budget justification display that includes—
  • (1) a major force program category for the five-year defense plan of the Department of Defense for the training, manning, and equipping of the cyber mission forces; and
  • (2) program elements for the cyber mission forces.
• (b) The Secretary may waive the requirement under subsection (a) for fiscal year 2017 if the Secretary—
  • (1) determines the Secretary is unable to comply with such requirement for fiscal year 2017; and
  • (2) establishes a plan to implement the requirement for fiscal year 2018.

§ 239. National security space programs: major force program and budget assessment

• (a) The Secretary of Defense shall establish a unified major force program for national security space programs pursuant to section 222(b) of this title to prioritize national security space activities in accordance with the requirements of the Department of Defense and national security.
• (b)
  • (1) Not later than 30 days after the date on which the President submits to Congress the budget for each of fiscal years 2017 through 2021, the Secretary of Defense shall submit to the congressional defense committees a report on the budget for national security space programs of the Department of Defense. The Secretary may include the report in the defense budget materials if the Secretary submits such materials to Congress by such date.
  • (2) Each report on the budget for national security space programs of the Department of Defense under paragraph (1) shall include the following:
    • (A) An overview of the budget, including—
      • (i) a comparison between that budget, the previous budget, the most recent and prior future-years defense program submitted to Congress under section 221 of this title , and the amounts appropriated for such programs during the previous fiscal year; and
      • (ii) the specific identification, as a budgetary line item, for the funding under such programs.
    • (B) An assessment of the budget, including significant changes, priorities, challenges, and risks.
    • (C) Any additional matters the Secretary determines appropriate.
  • (3) Each report under paragraph (1) shall be submitted in unclassified form, but may include a classified annex.
• (c) In this section:
  • (1) The term “budget”, with respect to a fiscal year, means the budget for that fiscal year that is submitted to Congress by the President under section 1105(a) of title 31 .
  • (2) The term “defense budget materials”, with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year.

§ 239a. Missile defense and defeat programs: major force program and budget assessment

• (a) The Secretary of Defense shall establish a unified major force program for missile defense and defeat programs pursuant to section 222(b) of this title to prioritize missile defense and defeat programs in accordance with the requirements of the Department of Defense and national security.
• (b)
  • (1) The Secretary shall include with the defense budget materials for each of fiscal years 2019 through 2023 a report on the budget for missile defense and defeat programs of the Department of Defense.
  • (2) Each report on the budget for missile defense and defeat programs of the Department under paragraph (1) shall include the following:
    • (A) An overview of the budget, including—
      • (i) a comparison between that budget, the previous budget, the most recent and prior future-years defense program submitted to Congress under section 221 of this title (such comparison shall exclude the responsibility for research and development of the continuing improvement of such missile defense and defeat program), and the amounts appropriated for such missile defense and defeat programs during the previous fiscal year; and
      • (ii) the specific identification, as a budgetary line item, for the funding under such programs.
    • (B) An assessment of the budget, including significant changes, priorities, challenges, and risks.
    • (C) Any additional matters the Secretary determines appropriate.
  • (3) Each report under paragraph (1) shall be submitted in unclassified form, but may include a classified annex.
• (c) In this section:
  • (1) The term “budget”, with respect to a fiscal year, means the budget for that fiscal year that is submitted to Congress by the President under section 1105(a) of title 31 .
  • (2) The term “defense budget materials”, with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year.
  • (3) The term “missile defense and defeat programs” means active and passive ballistic missile defense programs, cruise missile defense programs for the homeland, and missile defeat programs.

§ 239b. Certain intelligence-related programs: budget justification materials

• (a) In the budget justification materials submitted to Congress in support of the Department of Defense budget for fiscal year 2021 and each fiscal year thereafter (as submitted with the budget of the President under section 1105(a) of title 31 ), the Secretary of Defense may not include in any single program element both funds made available under the Military Intelligence Program and funds made available outside of the Military Intelligence Program.
• (b) In this section:
  • (1) The term “budget” has the meaning given that term in section 231(f) of this title .
  • (2) The term “defense budget materials” has the meaning given that term in section 231(f) of this title .

§ 240a. Audit of Department of Defense financial statements

• (a) The Secretary of Defense shall ensure that a full audit is performed on the financial statements of the Department of Defense for each fiscal year as required by section 3521(e) of title 31 .
• (b) The Secretary shall submit to Congress the results of the audit performed in accordance with subsection (a) for a fiscal year by not later than March 31 of the following fiscal year.

§ 240b. Financial Improvement and Audit Remediation Plan

• (a)
  • (1) The Chief Management Officer of the Department of Defense shall, in consultation with the Under Secretary of Defense (Comptroller), maintain a plan to be known as the “Financial Improvement and Audit Remediation Plan”.
  • (2) The plan required by paragraph (1) shall—
    • (A) describe specific actions to be taken, including interim milestones with a detailed description of the subordinate activities required, and estimate the costs associated with—
      • (i) correcting the financial management deficiencies that impair the ability of the Department of Defense to prepare timely, reliable, and complete financial management information;
      • (ii) ensuring the financial statements of the Department of Defense go under full financial statement audit, and that the Department leadership makes every effort to reach an unmodified opinion as soon as possible;
      • (iii) ensuring the audit of the financial statements of the Department of Defense for fiscal year 2018 occurs by not later than March 31, 2019 .
      • (iv) achieving an unqualified audit opinion for each major element of the statement of budgetary resources of the Department of Defense; and
      • (v) addressing the existence and completeness of each major category of Department of Defense assets; and
    • (B) systematically tie the actions described under subparagraph (A) to business process and control improvements and business systems modernization efforts described in section 2222 of this title .
• (b)
  • (1)
    • (A) Not later than June 30, 2019 , and annually thereafter, the Under Secretary of Defense (Comptroller) shall submit to the congressional defense committees a report on the status of the implementation by the Department of Defense of the Financial Improvement and Audit Remediation Plan under subsection (a).
    • (B) Each report under subparagraph (A) shall include the following:
      • (i) An analysis of the consolidated corrective action plan management summary prepared pursuant to section 240c of this title .
      • (ii) Current Department of Defense-wide information on the status of corrective actions plans related to critical capabilities and material weaknesses, including the standard data elements recommended in the implementation guide for Office of Management and Budget Circular A–123, for the armed forces, military departments, and Defense Agencies.
      • (iii) A current description of the work undertaken and planned to be undertaken by the Department of Defense, and the military departments, Defense Agencies, and other organizations and elements of the Department, to test and verify transaction data pertinent to obtaining an unqualified audit of their financial statements, including from feeder systems.
      • (iv) A current projected timeline of the Department in connection with the audit of the full financial statements of the Department, to be submitted to Congress annually not later than six months after the submittal to Congress of the budget of the President for a fiscal year under section 1105 of title 31 , including the following:
        • (I) The date on which the Department projects the beginning of an audit of the full financial statements of the Department, and the military departments, Defense Agencies, and other organizations and elements of the Department, for a fiscal year.
        • (II) The date on which the Department projects the completions of audits of the full financial statements of the Department, and the military departments, Defense Agencies, and other organizations and elements of the Department, for a fiscal year.
        • (III) The dates on which the Department estimates it will obtain an unqualified audit opinion on the full financial statements of the Department, the military departments, the Defense Agencies, and other organizations and elements of the Department for a fiscal year.
      • (v) A current estimate of the anticipated annual costs of maintaining an unqualified audit opinion on the full financial statements of the Department, the military departments, the Defense Agencies, and other organizations and elements of the Department for a fiscal year after an unqualified audit opinion on such full financial statements for a fiscal year is first obtained.
      • (vi) A certification of the results of the audit of the financial statements of the Department performed for the preceding fiscal year, and a statement summarizing, based on such results, the current condition of the financial statements of the Department.
      • (vii) If less than 50 percent of the auditing services under contract, as described in the briefing required under paragraph (2), are being performed by professionals meeting the qualifications described in section 240d(b) of this title , a detailed description of the risks associated with the risks of the acquisition strategy of the Department with respect to conducting audits and an explanation of how the strategy complies with the policies expressed by Congress.
      • (viii) If less than 25 percent of the auditing services under contract, as described in the briefing required under paragraph (2), are being performed by professionals meeting the qualifications described in section 240d(b) of this title , a written certification that the staffing ratio complies with commercial best practices and presents no increased risk of delay in the Department’s ability to achieve a clean audit opinion.
      • (ix) If less than 50 percent of the audit remediation services under contract, as described in the briefing required under paragraph (2)(B), are being performed by individual professionals meeting the qualifications described in suhsection 1 1 So in original. Probably should be “subsection”. (c), a detailed description of the risks associated with the risks of the acquisition strategy of the Department with respect to conducting audit remediation activities and an explanation of how the strategy complies with the policies expressed by Congress.
      • (x) If less than 25 percent of the audit remediation services under contract, as described in the briefing required under paragraph (2)(B), are being performed by individual professionals meeting the qualifications described in subsection (c), a written certification that the staffing ratio complies with commercial best practices and presents no increased risk of delay in the Department’s ability to achieve a clean audit opinion.
      • (xi) A description of audit activities and results for classified programs, including a description of the use of procedures and requirements to prevent unauthorized exposure of classified information in such activities.
      • (xii) An identification 2 2 So in original. The word “of” probably should appear. the manner in which the corrective action plan or plans of each department, agency, component, or element of the Department of Defense, and the corrective action plan of the Department as a whole, support the National Defense Strategy (NDS) of the United States.
    • (C)
      • (i) A description submitted pursuant to clause (vii) or (ix) of subparagraph (B) or a certification submitted pursuant to clause (viii) of such subparagraph shall be submitted in unclassified form, but may contain a classified annex.
      • (ii) The Secretary may not delegate the submission of a certification pursuant to clause (viii) of subparagraph (B) to any official other than the Deputy Secretary of Defense, the Chief Management Officer, or the Under Secretary of Defense (Comptroller).
  • (2)
    • (A) Not later than January 31 and June 30 each year, the Under Secretary of Defense (Comptroller) and the comptrollers of the military departments shall provide a briefing to the congressional defense committees on the status of the corrective action plan. Such briefing shall include both the absolute number and percentage of personnel performing the amount of auditing services being performed by professionals meeting the qualifications described in section 240d(b) of this title .
    • (B) Not later than January 31 and June 30 each year, the Under Secretary of Defense (Comptroller) and the comptrollers of the military departments shall provide a briefing to the congressional defense committees on the status of the corrective action plan. Such briefing shall include both the absolute number and percentage of personnel performing the amount of audit remediation services being performed by professionals meeting the qualifications described in subsection (c).
  • (3) In this subsection, the term “critical capabilities” means the critical capabilities described in the Department of Defense report titled “Financial Improvement and Audit Readiness (FIAR) Plan Status Report” and dated May 2016.
• (c) The selection of audit remediation service providers shall be based, among other appropriate criteria, on qualifications, relevant experience, and capacity to develop and implement corrective action plans to address internal control and compliance deficiencies identified during a financial statement or program audit.

§ 240c. Audit: consolidated corrective action plan; centralized reporting system

The Under Secretary of Defense (Comptroller) shall—

• (1) on a bimonthly basis, prepare a consolidated corrective action plan management summary on the status of key corrective actions plans related to critical capabilities for the armed forces and for the components of the Department of Defense that support the armed forces; and
• (2) develop and maintain a centralized monitoring and reporting process that captures and maintains up-to-date information, including the standard data elements recommended in the implementation guide for Office of Management and Budget Circular A–123, for key corrective action plans and findings and recommendations Department-wide that pertain to critical capabilities.

§ 240d. Audits: audit of financial statements of Department of Defense components by independent external auditors

• (a) For purposes of satisfying the requirement under section 3521(e) of title 31 for audits of financial statements of Department of Defense components identified by the Director of the Office of Management and Budget under section 3515(c) of such title, the Inspector General of the Department of Defense shall obtain each year audits of the financial statements of each such component by an independent external auditor.
• (b) The selection of independent external auditors for purposes of subsection (a) shall be based, among other appropriate criteria, on their qualifications, independence, and capacity to conduct audits described in subsection (a) in accordance with applicable generally accepted government auditing standards. The Inspector General shall participate in the selection of the independent external auditors.
• (c) The Inspector General shall monitor the conduct of all audits by independent external auditors under subsection (a).
• (d)
  • (1) The Inspector General shall require the independent external auditors conducting audits under subsection (a) to submit a report on their audits each year to—
    • (A) the Under Secretary of Defense (Comptroller) as the Chief Financial Officer of the Department of Defense for the purposes of chapter 9 of title 31 and the Chief Management Officer of the Department of Defense;
    • (B) the Controller of the Office of Federal Financial Management in the Office of Management and Budget;
    • (C) the head of each component audited; and
    • (D) the appropriate committees of Congress.
  • (2) In this subsection, the term “appropriate committees of Congress” means—
    • (A) the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and
    • (B) the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.
• (e) The requirements of this section—
  • (1) shall not be construed to alter the requirement under section 3521(e) of title 31 that the financial statements of the Department of Defense as a whole be audited by the Inspector General or by an independent external auditor, as determined by the Inspector General; and
  • (2) shall not be construed to limit or alter the authorities of the Comptroller General of the United States under section 3521(g) of title 31 .

§ 240e. Audits: use of commercial data integration and analysis products in preparing audits

• (a) The Secretary of Defense shall use competitive procedures under chapter 137 of this title to procure or develop technologies or services, including those based on commercially available information technologies and services to improve data collection and analyses to support preparation of auditable financial statements for the Department of Defense.
• (b) The Secretary of Defense may use science and technology funding, prototypes, and test and evaluation resources as appropriate in support of deployment of technologies and services as described in subsection (a).

§ 240f. Audits: selection of service providers for audit services

The Department of Defense shall select service providers for auditing services based on the best value to the Department, as determined by the resource sponsor for an auditing contract, rather than based on the lowest price technically acceptable service provider.

§ 240g. Defense Business Audit Remediation Plan

• (a) The Secretary of Defense shall maintain a plan, to be known as the “Defense Business Systems Audit Remediation Plan”. Such plan shall include a current accounting of the defense business systems of the Department of Defense that will be introduced, replaced, updated, modified, or retired in connection with the audit of the full financial statements of the Department, including a comprehensive roadmap that displays—
  • (1) in-service, retirement, and other pertinent dates for affected defense business systems;
  • (2) current cost-to-complete estimates for each affected defense business system; and
  • (3) dependencies both between the various defense business systems and between the introduction, replacement, update, modification, and retirement of such systems.
• (b)
  • (1) Not later than June 30, 2020 , and annually thereafter, the Secretary of Defense shall submit to the congressional defense committees an updated report on the Defense Business Systems Audit Remediation Plan under subsection (a).
  • (2) Not later than January 31 and June 30 each year, the Secretary shall provide to the congressional defense committees a briefing on the status of the Defense Business Systems Audit Remediation Plan. Such briefing shall include a description of any updates to the defense business systems roadmap referred to in subsection (a).
• (c) In this section, the term “defense business system” has the meaning given such term in section 2222(i)(1)(A) of this title .

§ 240h. Annual report on auditable financial statements

• (a) Not later than January 30 of each year, the Secretary of Defense shall submit to the congressional defense committees a report that includes a ranking of all of the military departments and Defense Agencies in order of how advanced each such department and Agency is in achieving auditable financial statements, as required by law. In preparing the report, the Secretary shall seek to exclude information that is otherwise available in other reports to Congress.
• (b) Not later than June 30 of each year, the head of each of the military departments and Defense Agencies that were ranked in the bottom quartile of the report submitted under subsection (a) for that year shall submit to the congressional defense committees a report that includes the following information for that military department or Defense Agency:
  • (1) A description of the material weaknesses of the military department or Defense Agency.
  • (2) The underlying causes of such weaknesses.
  • (3) A plan for remediating such weaknesses.
  • (4) The total number of open audit notices of findings and recommendations (hereinafter referred to as “NFRs”) for the most recently concluded fiscal year and the preceding two fiscal years, where applicable.
  • (5) The number of repeat or reissued NFRs from the most recently concluded fiscal year.
  • (6) The number of NFRs that were previously forecasted to be closed during the most recently concluded fiscal year that remain open.
  • (7) The number of closed NFRs during the current fiscal year and prior fiscal years.
  • (8) The number of material weaknesses that were validated by external auditors as fully resolved or downgraded in the current fiscal year over prior fiscal years.
  • (9) A breakdown by fiscal years in which open NFRs are forecasted to be closed.
  • (10) Explanations for unfavorable trends in the information under paragraphs (1) through (9).