Sec. 1073. REPORT ON EFFECTS OF CERTAIN ETHICS REQUIREMENTS ON DEPARTMENT OF DEFENSE HIRING, RETENTION, AND OPERATIONS

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## SEC. 1073 REPORT ON EFFECTS OF CERTAIN ETHICS REQUIREMENTS ON DEPARTMENT OF DEFENSE HIRING, RETENTION, AND OPERATIONS ###

(a)Study ####

(1)In general The Secretary of Defense shall seek to enter into an agreement with a federally funded research and development center under which the center shall conduct a study to assess whether the covered ethics requirements have had an effect on— #####

(A)the hiring or retention of personnel at the Department of Defense, particularly those persons with specialized experience or training; and #####

(B)the ability of the Department of Defense to detect, deter, prevent, and redress violations of the Standards of Ethical Conduct for Employees of the Executive Branch and applicable statutory and regulatory ethics requirements, including conflicts of interest, by Department of Defense personnel. ####

(2)Elements A study conducted pursuant to paragraph

(1)shall include the following elements: #####

(A)An examination of how the covered ethics requirements are inconsistent or incongruent with ethics statutes, and any implementing regulations, that apply to all executive branch employees. #####

(B)An examination of the relative degrees of risk associated with the potential for violations of ethical standards at the Department of Defense and those associated with the potential for such violations at other Federal agencies, and an analysis of whether ethical standards that are applied exclusively to Department of Defense personnel are justified. #####

(C)An examination of how covered ethics requirements have affected, or are likely to affect, the hiring and retention of personnel, particularly those persons with specialized experience or training, at the Department of Defense in comparison to other Federal agencies that are not subject to such requirements. The examination shall account for any relevant differences between the Department of Defense and other Federal departments and agencies within the executive branch and shall use analytical methods to control for any variables that may affect the comparative results. #####

(D)An examination of how any confusion in the interpretation of the requirement referred to in paragraph (3)(B) may have affected, or is likely to affect— ######

(i)the hiring or retention of personnel, particularly those persons with specialized experience or training, at the Department of Defense; and ######

(ii)the ability of the Department of Defense to detect, deter, prevent, and redress violations of ethical standards, including conflicts of interest, by Department of Defense personnel. #####

(E)An examination of how the ethics requirements referred to in subparagraphs

(B)and

(C)of paragraph

(3)may affect the ability of the Department of Defense to obtain expertise from industry and other groups in support of technology development, supply chain security, and other national security matters. #####

(F)An examination of whether the removal or alteration of any covered ethics requirement may adversely affect the ability of the Department of Defense to detect, deter, prevent, and redress violations of ethical standards, including conflicts of interest, by Department of Defense personnel. #####

(G)An examination of whether the removal or alteration of any covered ethics requirement may adversely affect the ability of the Department of Defense to negotiate and effectuate arms-length transactions. #####

(H)Any suggested changes to any covered ethics requirement to further the establishment and maintenance of ethical standards, while also supporting the ability of the Department of Defense to hire and retain personnel and obtain expertise from academia, think tanks, industry, and other groups to support national security. ####

(3)Covered ethics requirements In this section, the term “covered ethics requirement” means each of the requirements under the following provisions of law: #####

(A)Section 847 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181; 10 U.S.C. 1701 note). #####

(B)Section 1045 of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115-91; 10 U.S.C. 971 note prec.). #####

(C)Section 1117 of the National Defense Authorization Act for Fiscal Year 2022 (10 U.S.C. 971 note prec.). #####

(D)Section 988 of title 10, United States Code. ###

(b)Report ####

(1)In general An agreement entered into under subsection

(a)shall provide that the federally funded research and development center shall submit to the Secretary a report containing the results of the study conducted under the agreement by not later than one year after the date of the enactment of this Act. ####

(2)Transmittal to congress Not later than 30 days after the Secretary receives the report under paragraph (1), the Secretary shall transmit a copy of the report to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives. ####

(3)Secretary of defense evaluation The Secretary shall submit with the report transmitted pursuant to paragraph

(2)an evaluation of each change suggested pursuant to subsection (a)(2)(H). The evaluation shall include— #####

(A)a determination of whether the Secretary concurs with each suggested change; #####

(B)an assessment of the potential effects of each suggested change on the ability of the Department of Defense to hire or retain personnel at the Department of Defense, particularly those persons with specialized experience or training; #####

(C)an assessment of the potential effects of each suggested change on the ability of the Department of Defense to detect, deter, prevent, or redress violations of ethical standards, including conflicts of interest; and #####

(D)any other information that the Secretary determines to be appropriate.

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