H.R. 8800
National Defense Authorization Act for Fiscal Year 2027
Sponsor: Mike Rogers
1 cosponsor
Official summary
Written by the Congressional Research Service.
National Defense Authorization Act for Fiscal Year 2027
This bill sets forth policies and authorities for FY2027 for Department of Defense (DOD) programs, activities, and military construction as well as the national security programs of the Department of Energy (DOE).
Among other elements, the bill
- authorizes the procurement of various items, including aircraft and ships;
- sets active duty and reserve component personnel strength levels;
- sets policy regarding various aspects of military health care and military compensation;
- sets policy regarding DOD acquisitions and acquisition management, including contracting authorities and the acquisition workforce;
- sets policy for various matters related to DOD interactions with foreign nations, including matters concerning Israel, Europe, and the Indo-Pacific;
- sets policy for various matters related to DOD cybersecurity and artificial intelligence;
- requires DOD to include projected demand for foreign military sales in certain contexts, including munitions production planning, sustainment planning for major defense acquisition programs, and decisions regarding production rate increases of defense articles;
- requires DOD to establish an expedited qualification process for new domestic and allied sources of certain strategic materials, including specified metals, alloys, oxides, and magnets;
- authorizes specified military construction projects and extends the authorization of certain projects from previous fiscal years; and
- authorizes the National Nuclear Security Administration, Defense Nuclear Facilities Safety Board, Naval Petroleum Reserves, and Maritime Administration.
For additional information on the National Defense Authorization Act (NDAA) see
- In Focus IF10516, Defense Primer: Navigating the NDAA, and
- In Focus IF10515, Defense Primer: The NDAA Process.
Text of the bill
A Department of Defense Authorizations
I Procurement
A Authorization of Appropriations
B Army Programs
C Navy Programs
D Air Force Programs
E Defense-wide, Joint, and Multiservice Matters
II RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
A Authorization of Appropriations
B Program Requirements, Restrictions, and Limitations
C Plans, Reports, and Other Matters
III Operation and Maintenance
A Authorization of Appropriations
B Energy and Environment
C Logistics and Sustainment
D Reports
E Other Matters
IV MILITARY PERSONNEL AUTHORIZATIONS
A Active Forces
B Reserve Forces
C Authorization of Appropriations
V MILITARY PERSONNEL POLICY
A Officer Policy and Reserve Component Management
B Recruitment, General Service Authorities and Prohibitions, and Military Records
C Member Training
D Member Education
E Military Justice
F Investigations and Other Legal Matters
G Career Transition
H Family Programs, Child Care, and Dependent Education
I Decorations and Awards
J Other Matters and Miscellaneous Reports
K Military Chaplains Modernization Act of 2026
VI MILITARY COMPENSATION AND OTHER BENEFITS
A Bonus and Incentive Pays
B Allowances
C Leave
D Family and Survivor Benefits
E Defense Resale Matters
F Other Benefits, Reports, and Briefings
VII Health Care Provisions
A TRICARE and Other Health Benefits
B Health Care Administration
C Studies, Reports, and Other Matters
VIII Acquisition Policy, Acquisition Management, and Related Matters
A Acquisition Policy and Management
Where this section came from
Not in the first version (Introduced in House, May 13).
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Jun 15, 2026 · Reported in House Marked up by House Committee on Armed Services, Jun 4 Reported by House Committee on Armed Services, Jun 15 Committee members' individual votes aren't in our records.
What is a markup?
A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.
(a) Requirement for risk-based approach. Section 3843 of title 10, United States Code, is amended to read as follows:
3843. Contractor business systems: monitoring and surveillance standards
(a) Requirement for risk-based approach. The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contractor business systems that—
(1) minimizes the requirements for the surveillance of contractor business systems to only those that are necessary to conform with commercial best practices or industry standards, as applicable;
(2) integrates the surveillance of contractor business systems into the Defense Contract Management Agency’s standard surveillance framework, and requires that any additional reviews be risk-based and informed by the results of those standard surveillance activities; and
(3) allows a contractor to provide internal reports in connection with such standard surveillance activities and targeted reviews, and ensures that any such report is considered in the course of reviewing the contractor’s business systems.
(b) Minimum requirements for surveillance. In establishing the minimum requirements for surveillance under subsection (a)(1) for each type of contractor business system, the Secretary shall ensure that such requirements do not exceed the minimum requirements that are necessary to conform with commercial best practices or industry standards, as applicable, for that type of system.
(c) Surveillance and review
(1) Except as provided in paragraphs (2) and (3), in implementing the requirements of this section, the Secretary shall ensure that the frequency of review of a contractor business system shall be not more than once every three years, unless the standard surveillance activities under subsection (a)(2) indicate that the system has or may have a material weakness.
(2) In a case in which the contractor is a company that is subject to the securities laws, if a registered public accounting firm attests to the internal control assessment of the contractor, pursuant to section 404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262(b)), and certified documentation from such registered public accounting firm reflects—
(A) the unqualified opinion of such firm with respect to the contractor business system, such documentation shall eliminate the need for further review of the contractor business system by the Secretary;
(B) a qualified opinion of such firm with respect to the contractor business system, the Secretary shall review only those aspects of the contractor business system as to which the opinion was qualified rather than unqualified; and
(C) an adverse opinion of such firm with respect to the contractor business system, the Secretary shall take action under paragraph (1) or (2), or both, of subsection (d).
(3) Notwithstanding paragraph (2), the Secretary may establish a profit-based exemption for cases in which the contractor is a company that is subject to the securities laws. Under the exemption, the contractor business system of such a contractor may be exempt from further review by the Secretary if the level of profit of the contractor, taking into account all contracts of the contractor with the Department, is below a threshold level established by the Secretary.
(d) Corrective actions and remedies. The approach implemented under subsection (a) shall ensure the following:
(1) If the Secretary determines under subsection (c) that a contractor business system has a material weakness, appropriate officials of the Department will be available to work with the contractor to develop a corrective action plan defining specific actions to be taken to address the material weakness and a schedule for the implementation of such actions.
(2) The Secretary may pursue any other remedies that may be available under the contract or under any other applicable law and regulation.
(e) Guidance and training. The approach implemented under subsection (a) shall provide guidance and training to appropriate Government officials on the approach, the requirements and limitations in subsection (c) that apply to companies that are subject to the securities laws, the data that is produced by contractor business systems, and the manner in which such data should be used to effectively manage Department programs.
(f) Definitions. In this section:
(1) The term contractor business system means an integrated set of internal controls, processes, procedures, personnel, and information capabilities that a contractor uses to plan, execute, monitor, and report on its performance of Government contracts in a manner that is accurate, consistent, auditable, and compliant with clear and specific business system requirements that are identified and made publicly available.
(2) The term material weakness means a deficiency or combination of deficiencies in the internal control over information in contractor business systems, such that there is a reasonable possibility that a material misstatement of such information will not be prevented, or detected and corrected, on a timely basis. For purposes of this paragraph, a reasonable possibility exists when the likelihood of an event occurring—
(A) is probable; or
(B) is more than remote but less than likely.
(b) Implementation. The initial approach required by section 3843 of title 10, United States Code, as added by subsection (a), shall be implemented not later than December 1, 2027.
(c) Report on implementing approach and defining minimum requirements
(1) Agreement. Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall enter into an agreement with the acquisition research organization described in section 4142(a) of title 10, United States Code, requiring the organization to—
(A) document and evaluate commercial best practices and industry standards for each type of contractor business system, as described in subsection (b) of such section 3843; and
(B) make recommendations for the approach required by subsection (a) of such section 3843.
(2) Report. Not later than 90 days after the date on which the Secretary and the organization enter into the agreement required by paragraph (1), the organization shall submit to the Secretary a report on the results of the activities carried out under paragraph (1).
(3) Consideration of report. In implementing the initial approach required by subsection (a) of such section 3843, and in defining the minimum requirements for contractor business systems under subsection (b) of such section, the Secretary shall take into account the report submitted under paragraph (2).
(d) Repeal of contractor business systems improvement program. Section 893 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. note prec. 3841) is repealed.
B Amendments to General Contracting Authorities, Procedures, and Limitations
C Provisions Relating to Acquisition Workforce Development
D Intellectual Property Matters
E Other Matters
IX Department of Defense Organization and Management
X General Provisions
A Financial Matters
B Naval Vessels and Shipyards
C Counterterrorism
D Miscellaneous Authorities and Limitations
E Studies and Reports
F Other Matters
XI Civilian Personnel
XII Matters relating to Foreign Nations
A Assistance and Training
B Matters relating to the Near and Middle East
C Matters relating to Israel
D Matters relating to Europe
E Matters relating to the Indo-Pacific
F Reports
G Other matters
XIV Other Authorizations
A Military Programs
B Other Matters
XV Cyberspace-related Matters
A Cybersecurity
B Information Technology and Artificial Intelligence
C Reports and Other Matters
XVI Space Activities, Strategic Programs, and Intelligence Matters
A Space Activities
B Defense Intelligence and Intelligence-Related Activities
C Nuclear Forces
D Missile Defense Programs
E Other Matters
F Matters Relating to Adversary Supply Chains
XVII Other Defense Matters
A Miscellaneous Authorities and Limitations
B Other Matters
C Initiating biomedical outcomes to garner advancements into innovative efficacy
D Unidentified Anomalous Phenomena Records Collection At the National Archives and Records Administration
XVIII Revitalization of the Defense Industrial Base
A Provisions to Protect and Strengthen Supply Chains
B Provisions Relating to Defense Industrial Base Manufacturing
C Organic Industrial Base
D Small Business Matters
E Defense Industrial Base Workforce Matters
F Other Matters
B Military Construction Authorizations
XXI Army Military Construction
XXII Navy Military Construction
XXIII Air Force Military Construction
XXIV Defense Agencies Military Construction
XXV International Programs
A North Atlantic Treaty Organization Security Investment Program
B Host Country In-Kind Contributions
XXVI Guard and Reserve Forces Facilities
XXVII Base Realignment and Closure Activities
XXVIII Military Construction General Provisions
A Military Construction Programs
B Military Housing Reforms
C Real Property and Facilities Administration
D Land Conveyances and Withdrawals
E Pilot Programs
F Miscellaneous Authorities
G Reports and Other Matters
C Department of Energy National Security Authorizations and Other Authorizations
XXXI Department of Energy National Security Programs
A National Security Programs and Authorizations
B Program Authorizations, Restrictions, and Limitations
C Reports and Other Matters
XXXII Defense Nuclear Facilities Safety Board
XXXIV Naval Petroleum Reserves
XXXV Maritime Administration
A Authorization of Appropriations
A Maritime Administration
B Merchant Marine Academy
C Other Matters
D Coast Guard
E Maritime Workforce and Education
XXXVI SHIPs for America
A Oversight and Accountability
B Maritime Security Trust Fund
C Sealift capability
D Vessels of the United States in international commerce
1 Strategic sealift programs
2 Cargo preference
3 Regulatory reform
E Shipbuilding
1 Shipbuilding financial incentives
2 Department of Defense Programs
3 Shipbuilding innovation and infrastructure
F Workforce Development
1 Workforce incentives
2 Workforce Pipeline
3 United States Merchant Marine Academy and State maritime academies
4 Maritime Credentialing Modernization
D Funding Tables
XLI Procurement
XLII Research, Development, Test, and Evaluation
XLIII Operation and Maintenance
XLIV Military Personnel
XLV Other Authorizations
XLVI Military Construction
XLVII Department of Energy National Security Programs
E SAVE America Act