The INSIDER daily digest

Our coverage of the House Armed Services Committee chairman's mark of the fiscal year 2017 defense policy bill dominates this Monday INSIDER Daily Digest.

A broad-strokes look at the proposed bill:

House panel would boost FY-17 investment accounts through major OCO reallocation

In a major change to the Pentagon's fiscal year 2017 budget submission, a draft House Armed Services Committee bill would reallocate 40 percent of the Defense Department's war spending proposal for routine base budget needs, raising the Obama administration's $5 billion request to $23 billion.

Drilling down into the service-specific portions of the legislation:

House mark-up would restrict Air Force plans to fund new launch vehicle

The House Armed Services Committee's mark of the fiscal year 2017 defense policy bill takes a strong stance against the Air Force's plan to use FY-17 funds to broaden the scope of its RD-180 engine replacement effort.

House authorizers propose using OCO to fund Huey sole-source, F-35 buy-back

The House Armed Services committee seeks to use Overseas Contingency Operations funding to support a number of plus-ups to Air Force procurement efforts -- including an unrequested $80 million boost to speed up the UH-1N Huey replacement program and support the sole-source acquisition of Army UH-60M Black Hawks.

House authorizers use wartime funding to finance naval services' unfunded priorities and more

The House Armed Services Committee's mark of the fiscal year 2017 defense policy bill would use the Overseas Contingency Operations account to pay for the majority of Navy and Marine Corps unfunded priorities, while also stuffing OCO with hundreds of millions not requested by the services.

House Armed Services Committee seeks to add $1B for Army aviation

The House Armed Services Committee is poised to restore more than $1 billion in funding to Army aviation, closely following the service's unfunded requirements list.

Army may be forced to discontinue its intelligence software

The Army could be forced to halt further development of its intelligence software suite, the Distributed Common Ground System, if lawmakers on the House Armed Services Committee get their way.

In related news, the top Republican and Democrat on the House Armed Services Committee both spoke late last week on the FY-17 defense policy bill:

Thornberry predicts NDAA debate on contractor protest process

House Armed Services Committee Chairman Mac Thornberry (R-TX) expects lawmakers to debate proposals to reform the way defense contractors protest losing bids when the fiscal year 2017 defense authorization bill is considered this week.

Smith 'leaning toward' supporting authorization bill, despite $18B budget 'gambit'

The top Democrat on the House Armed Services Committee told Inside Defense on Friday he is “leaning toward” supporting the fiscal year 2017 defense authorization bill, despite the GOP's plan to transfer $18 billion from the Pentagon's warfighting account into its base budget to pay for additional weapon procurements and other unrequested plus-ups.