,,ii  #aahth ,,congress  #b;d ,session  
,s4 #eeec  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #ag  
7legislative day1 ,december #af71       
#bjbd,mr4 ,cornyn introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,armed   
,services  ,a ,,bill  ,to provide for   
the use of capability-based analysis of 
price of goods or services offered by   
nontraditional defense contractors4  #a4
 ,use of capability-based analysis of   
price of goods or services offered by   
nontraditional defense contractors  7a7 
,pilot program ,a contracting officer of
 the ,department of ,defense may use    
alternative capability-based analysis to
 determine whether the proposed price or
 fee for a commercial product or        
commercial service offered by a         
nontraditional defense contractor 7as   
that term is defined in section #cjad of
 title #aj1 ,united ,states ,code7 is   
fair and reasonable4  7b7 ,report ,not  
later than ,february #a1 #bjbh1 the     

,under ,secretary of ,defense for       
,acquisition and ,sustainment shall     
submit to the ,committees on ,armed     
,services of the ,senate and the ,house 
of ,representatives a report evaluating 
the use of the authority under          
subsection 7a71 including the following 
elements3 7#a7 ,a summary of activities 
conducted because of the inclusion of   
alternative capability-based analysis   
into the evaluation of proposals offered
 by nontraditional contractors1         
including specific examples4  7#b7 ,an  
analysis of the effectiveness of the    
authority under subsection 7a7 in       
increasing nontraditional defense       
contractor participation in the defense 
industrial base and in increasing access
 by the ,department of ,defense to new  
technologies or capabilities4  7#c7     
,recommendations on-- 7,a7 the          
continuation of the authority under     
subsection 7a72  7,b7 changes to        
existing law2 and  7,c7 the expansion of
 the program to include other           

contractors4  7c7 ,sunset ,the authority
 under subsection 7a7 shall expire on   
,september #cj1 #bjbi4  7d7 ,alternative
 capacity-,based analysis defined ,in   
this section1 the term alternative      
capability-based analysis means an      
analysis of the value to the ,federal   
,government of a commercial product or  
commercial service that considers one or
 more of the following elements3 7#a7   
,the fitness of the product or service  
for the particular purpose such         
commercial product or commercial service
 is being procured4  7#b7 ,the unique   
nature of1 technical expertise required 
to produce or provide1 and the          
non-,federal resources expended to      
develop such commercial product or      
commercial service4  7#c7 ,the business 
model or financial projections of the   
nontraditional defense contractor1      
commensurate with the scale of the      
potential investment by the ,secretary  
of ,defense1 which may include cost     
information1 self-funded risk1 financial

 projections1 expenditure rates1        
estimates of total sales market1 and    
other financial1 technical1 or          
management data4  7#d7 ,the estimated   
total cost avoidance or increased       
capacity afforded by such commercial    
product or commercial service in        
relation to current and future costs of 
programs and operations that provide the
 same or similar capabilities4  7#e7    
,input from the anticipated users of    
such commercial product or commercial   
service on the potential value added by 
the improved capabilities or production 
processes resulting from such commercial
 product or commercial service4