Sec. 887. REVIEW AND REPORT ON CONTRACTUAL FLOW-DOWN PROVISIONS

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## SEC. 887 REVIEW AND REPORT ON CONTRACTUAL FLOW-DOWN PROVISIONS ###

(a)Review Required The Secretary of Defense shall conduct a review of contractual flow-down provisions related to major defense acquisition programs on contractors and suppliers, including small businesses, contractors for commercial items, nontraditional defense contractors, universities, and not-for-profit research institutions. The review shall— ####

(1)identify the flow-down provisions that exist in the Federal Acquisition Regulation and the Defense Federal Acquisition Regulation Supplement; ####

(2)identify the flow-down provisions that are critical for national security; ####

(3)examine the extent to which clauses in contracts with the Department of Defense are being applied inappropriately in subcontracts under the contracts; ####

(4)assess the applicability of flow-down provisions for the purchase of commodity items that are acquired in bulk for multiple acquisition programs; ####

(5)determine the unnecessary costs or burdens, if any, of flow-down provisions on the supply chain; ####

(6)determine the effect, if any, of flow-down provisions on the participation rate of small businesses, contractors for commercial items, nontraditional defense contractors, universities, and not-for-profit research organizations in defense acquisition efforts; and ####

(7)determine the effect, if any, of flow-down provisions on Department of Defense access to advanced research and technology capabilities available in the private sector. ###

(b)Contract Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall enter into a contract with an independent entity with appropriate expertise to conduct the review required by subsection (a). ###

(c)Report Not later than August 1, 2017, the Secretary shall submit to the congressional defense committees a report on the findings of the independent entity, along with a description of any actions that the Secretary proposes to address the findings of the independent entity.