Sec. 804. DEFENSE MODERNIZATION ACCOUNT AMENDMENTS

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## SEC. 804 DEFENSE MODERNIZATION ACCOUNT AMENDMENTS ###

(a)Funds Available for Account Section 2216(b)(1) of title 10, United States Code, is amended by striking “commencing”. ###

(b)Transfers to Account Section 2216(c) of such title is amended— ####

(1)in paragraph (1)(A)— #####

(A)by striking “or the Secretary of Defense with respect to Defense-wide appropriations accounts” and inserting “, or the Secretary of Defense with respect to Defense-wide appropriations accounts,”; and #####

(B)by striking “that Secretary” and inserting “the Secretary concerned”; ####

(2)in paragraph (1)(B)— #####

(A)by inserting after “following funds” the following: “that have been appropriated for fiscal years after fiscal year 2016 and are”; #####

(B)in clause (i)— ######

(i)by striking “for procurement” and inserting “for new obligations”; ######

(ii)by striking “a particular procurement” and inserting “an acquisition program”; and ######

(iii)by striking “that procurement” and inserting “that program”; #####

(C)by striking clause (ii); and #####

(D)by redesignating clause

(iii)as clause (ii); ####

(3)in paragraph (2)— #####

(A)by striking “, other than funds referred to in subparagraph (B)(iii) of such paragraph,”; and #####

(B)by striking “if—” and all that follows through “(B) the balance of funds” and inserting “if the balance of funds”; ####

(4)in paragraph (3)— #####

(A)by striking “credited to” both places it appears and inserting “deposited in”; and #####

(B)by inserting “and obligation” after “available for transfer”; and ####

(5)by striking paragraph (4). ###

(c)Authorized Use of Funds Section 2216(d) of such title is amended— ####

(1)in paragraph (1)— #####

(A)by striking “commencing”; and #####

(B)by striking “Secretary of Defense” and inserting “Secretary concerned”; ####

(2)in paragraph (2), by striking “a procurement program” and inserting “an acquisition program”; ####

(3)by amending paragraph

(3)to read as follows: > > #### “(3) > > For research, development, test, and evaluation, for procurement, and for sustainment activities necessary for paying costs of unforeseen contingencies that are approved by the milestone decision authority concerned, that could prevent an ongoing acquisition program from meeting critical schedule or performance requirements.” > ; and ####

(4)by inserting at the end the following new paragraph: > > #### “(4) > > For paying costs of changes to program requirements or system configuration that are approved by the configuration steering board for a major defense acquisition program.” > . ###

(d)Limitations Section 2216(e) of such title is amended— ####

(1)in paragraph (1), by striking “procurement program” both places it appears and inserting “acquisition program”; and ####

(2)in paragraph (2), by striking “authorized appropriations” and inserting “authorized appropriations, unless the procedures for initiating a new start program are complied with”. ###

(e)Transfer of Funds Section 2216(f)(1) of such title is amended by striking “Secretary of Defense” and inserting “Secretary of a military department, or the Secretary of Defense with respect to Defense-wide appropriations accounts,”. ###

(f)Availability of Funds by Appropriation Section 2216(g) of such title is amended— ####

(1)by striking “in accordance with the provisions of appropriations Acts”; and ####

(2)by adding at the end the following: “Funds deposited in the Defense Modernization Account shall remain available for obligation until the end of the third fiscal year that follows the fiscal year in which the amounts are deposited in the account.”. ###

(g)Secretary to Act Through Comptroller Section 2216(h)(2) of such title is amended— ####

(1)by redesignating subparagraphs (A), (B), and

(C)as subparagraphs (B), (C), and (D), respectively; ####

(2)by inserting before subparagraph (B), as so redesignated, the following new subparagraph (A): > > ##### “(A) > > the establishment and management of subaccounts for each of the military departments and Defense Agencies concerned for the use of funds in the Defense Modernization Account, consistent with each military department’s or Defense Agency’s deposits in the Account;” > ; ####

(3)in subparagraph (C), as so redesignated, by inserting “and subaccounts” after “Account”; and ####

(4)in subparagraph (D), as so redesignated, by striking “subsection (c)(1)(B)(iii)” and inserting “subsection (c)(1)(B)(ii)”. ###

(h)Definitions Paragraph

(1)of section 2216(i) of such title is amended to read as follows: > > #### “(1) > > The term ‘major defense acquisition program’ has the meaning given the term in section 2430(a) of this title.” > . ###

(j)Expiration of Authority Section 2216(j)(1) of such title is amended by striking “terminates at the close of September 30, 2006” and inserting “terminates at the close of September 30, 2022”. ## Subtitle B Department of Defense Acquisition Agility