1.Short title; table of
contents
(a)This Act may be cited
as the Weapon Systems Acquisition
Reform Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Congressional defense committees.
TITLE I—Acquisition Organization
Sec. 101. Reports on systems engineering capabilities of the
Department of Defense.
Sec. 102. Director of Developmental Test and
Evaluation.
Sec. 103. Assessment of technological maturity of critical
technologies of major defense acquisition programs by the Director of Defense
Research and Engineering.
Sec. 104. Director of Independent Cost Assessment.
Sec. 105. Role of the commanders of the combatant commands in
identifying joint military requirements.
TITLE II—Acquisition Policy
Sec. 201. Consideration of trade-offs among cost, schedule, and
performance in the acquisition of major weapon systems.
Sec. 202. Preliminary design review for major defense
acquisition programs.
Sec. 203. Maximization of competition throughout the life cycle
of major defense acquisition programs.
Sec. 204. Critical cost growth in major defense acquisition
programs.
Sec. 205. Organizational conflicts of interest in the
acquisition of major weapon systems.
Sec. 206. Awards for Department of Defense personnel for
excellence in the acquisition of products and services.
2.Congressional
defense committeesIn this
Act, the term congressional defense committees has the meaning
given that term in section 101(a)(16) of title 10, United States Code.
<enum>I</enum><header>Acquisition
Organization</header>
<section id="H11A2546BEAC54E25B29F96FA1FB88831"><enum>101.</enum><header>Reports on
systems engineering capabilities of the Department of Defense</header>
<subsection id="H5EF5838C82C54115B0BA85068E2C9C18"><enum>(a)</enum><header>Reports by
service acquisition executives</header><text>Not later than 180 days after the
date of the enactment of this Act, the service acquisition executive of each
military department shall submit to the Under Secretary of Defense for
Acquisition, Technology, and Logistics a report setting forth the
following:</text>
<paragraph id="HF0A441B600F145ED93D6B36D7DEBDA7B"><enum>(1)</enum><text>A
description of the extent to which such military department has in place
development planning organizations and processes staffed by adequate numbers of
personnel with appropriate training and expertise to ensure that—</text>
<subparagraph id="HFB3B2DB3320F45369EBEE89F64717186"><enum>(A)</enum><text>key requirements,
acquisition, and budget decisions made for each major weapon system prior to
Milestones A and B are supported by a rigorous systems analysis and systems
engineering process;</text>
</subparagraph><subparagraph id="H875730A48902400E9F82E2E0036B1D4"><enum>(B)</enum><text>the systems
engineering strategy for each major weapon system includes a robust program for
improving reliability, availability, and maintainability as an integral part of
design and development; and</text>
</subparagraph><subparagraph id="H811E8C3DF43C466B99DE001BC586CE00"><enum>(C)</enum><text>systems
engineering requirements, including reliability, availability, and
maintainability requirements, are identified during the Joint Capabilities
Integration Development System process and incorporated into contract
requirements for each major weapon system.</text>
</subparagraph></paragraph><paragraph id="HE473604FC4374538AA2205653545225F"><enum>(2)</enum><text>A
description of the actions that such military department has taken, or plans to
take, to—</text>
<subparagraph id="H8AB7F86DFD3F404997E0774DCA6B95CA"><enum>(A)</enum><text>establish needed
development planning and systems engineering organizations and processes;
and</text>
</subparagraph><subparagraph id="H6048831D8176484897A3ED373D3DF03D"><enum>(B)</enum><text>attract, develop,
retain, and reward systems engineers with appropriate levels of hands-on
experience and technical expertise to meet the needs of such military
department.</text>
</subparagraph></paragraph></subsection><subsection id="H41AE01D010814B6DBD492C41005B0068"><enum>(b)</enum><header>Report by Under
Secretary of Defense for Acquisition, Technology, and
Logistics</header><text>Not later than 270 days after the date of the enactment
of this Act, the Under Secretary of Defense for Acquisition, Technology, and
Logistics shall submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a report on the
system engineering capabilities of the Department of Defense. The report shall
include, at a minimum, the following:</text>
<paragraph id="H8FE825BFDEB4428F883C038521CED0E1"><enum>(1)</enum><text>An assessment by
the Under Secretary of the reports submitted by the service acquisition
executives pursuant to subsection (a) and of the adequacy of the actions that
each military department has taken, or plans to take, to meet the systems
engineering and development planning needs of such military department.</text>
</paragraph><paragraph id="H1CC7F3111EC34802B3DD00FF18420052"><enum>(2)</enum><text>An assessment of
each of the recommendations of the report on Pre-Milestone A and Early-Phase
Systems Engineering of the Air Force Studies Board of the National Research
Council, including the recommended checklist of systems engineering issues to
be addressed prior to Milestones A and B, and the extent to which such
recommendations should be implemented throughout the Department of
Defense.</text>
</paragraph></subsection></section><section id="H8E32BC34377B4A0EB8CAE35F8341CD4"><enum>102.</enum><header>Director of
Developmental Test and Evaluation</header>
<subsection id="HEEBD791DF72B454CB46D8EC300F326A2"><enum>(a)</enum><header>Establishment of
position</header>
<paragraph id="HADB3A34D1E92478B8BD79E964591497E"><enum>(1)</enum><header>In
general</header><text>Chapter 4 of title 10, United States Code, is amended by
inserting after section 139b the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HA79D0FE5A02946E69352BE58542CA00" style="USC">
<section id="H4C16A61DA70347C8B2A3F3683F8FFF63"><enum>139c.</enum><header>Director of
Developmental Test and Evaluation</header>
<subsection id="HCCE6DA593FDA49CF8F233E4E2216F8DF"><enum>(a)</enum><text>There is a
Director of Developmental Test and Evaluation, who shall be appointed by the
Secretary of Defense from among individuals with an expertise in acquisition
and testing.</text>
</subsection><subsection id="H5A3A804885F84019903E8F5DD79FC883"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H8A05EE747D724D32A7A4715E7950C1FF"><enum>(1)</enum><text>The Director of
Developmental Test and Evaluation shall be the principal advisor to the
Secretary of Defense and the Under Secretary of Defense for Acquisition,
Technology, and Logistics on developmental test and evaluation in the
Department of Defense.</text>
</paragraph><paragraph id="HE88EE4800737416296DD5900737DE1AB" indent="up1"><enum>(2)</enum><text>The Director shall be subject to the
supervision of the Under Secretary of Defense for Acquisition, Technology, and
Logistics and shall report to the Under Secretary.</text>
</paragraph></subsection><subsection id="H50E6200F78C643A984D58E315C487D15"><enum>(c)</enum><text>The Director of
Developmental Test and Evaluation shall—</text>
<paragraph id="HA9A5968E2AA54F6DB6478B01E88065F"><enum>(1)</enum><text>develop policies
and guidance for the developmental test and evaluation activities of the
Department of Defense;</text>
</paragraph><paragraph id="HD35145AB37F64DC9AAFB8668A8467458"><enum>(2)</enum><text>monitor and review
the developmental test and evaluation activities of the Department of
Defense;</text>
</paragraph><paragraph id="HD38C4D31B6A9465AB12B1CE7AE98C15"><enum>(3)</enum><text>review and approve
the test and evaluation master plan for each major defense acquisition program
of the Department of Defense;</text>
</paragraph><paragraph id="H1697EC730EF5459393A3B6A6D1F68059"><enum>(4)</enum><text>supervise the
activities of the Director of the Department of Defense Test Resource
Management Center under section 196 of this title;</text>
</paragraph><paragraph id="H42FFC4B076494E87BB441536D6D29FB3"><enum>(5)</enum><text>review the
organizations and capabilities of the military departments with respect to
developmental test and evaluation and identify needed changes or improvements
to such organizations and capabilities; and</text>
</paragraph><paragraph id="HD238C1BE2599483CA100A8D2F846E9F9"><enum>(6)</enum><text>perform such other
activities relating to the developmental test and evaluation activities of the
Department of Defense as the Under Secretary of Defense for Acquisition,
Technology, and Logistics may prescribe.</text>
</paragraph></subsection><subsection id="HADE26E10A9E64A898E65001CD2652938"><enum>(d)</enum><text>The Director of
Developmental Test and Evaluation shall have access to all records and data of
the Department of Defense (including the records and data of each military
department) that the Director considers necessary in order to carry out the
Director's duties under this section.</text>
</subsection><subsection id="H6C51501EAEEA4530BEBBAB13200AA8"><enum>(e)</enum><text>The Director of
Developmental Test and Evaluation shall submit to Congress each year a report
on the developmental test and evaluation activities of the Department of
Defense during the preceding
year.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HEB3655BD7F444523A724082F02F9077C"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title is amended by inserting after the item relating to section 139b the
following new item:</text>
<quoted-block id="H50B3B4DCB35C42398FF1735C473159E7" style="USC">
<toc>
<toc-entry idref="H4C16A61DA70347C8B2A3F3683F8FFF63" level="section">139c. Director of Developmental Test and
Evaluation.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD9BA68E1681F40678641A61BA2C3BCE3"><enum>(3)</enum><header>Conforming
amendment</header><text>Section 196(f) of such title is amended by striking
<quote>the Under Secretary of Defense for Acquisition, Technology, and
Logistics</quote> and all that follows and inserting <quote>the Under Secretary
of Defense for Acquisition, Technology, and Logistics and the Director of
Developmental Test and Evaluation.</quote>.</text>
</paragraph></subsection><subsection id="H5DF010CE9ADC458AA8DE2FC0D929C052"><enum>(b)</enum><header>Reports on
developmental testing organizations and personnel</header>
<paragraph id="HA6E0BA26136346B3A346B0B8E7D56C67"><enum>(1)</enum><header>Reports by
service acquisition executives</header><text>Not later than 180 days after the
date of the enactment of this Act, the service acquisition executive of each
military department shall submit to the Director of Developmental Test and
Evaluation a report on the extent to which the test organizations of such
military department have in place, or have effective plans to develop, adequate
numbers of personnel with appropriate expertise for each purpose as
follows:</text>
<subparagraph id="HE9053ED1C41947838F6BED60EE9F9560"><enum>(A)</enum><text>To ensure that
testing requirements are appropriately addressed in the translation of
operational requirements into contract specifications, in the source selection
process, and in the preparation of requests for proposals on all major defense
acquisition programs.</text>
</subparagraph><subparagraph id="H864777313C7F469EA96F5293ADAFC23E"><enum>(B)</enum><text>To participate in
the planning of developmental test and evaluation activities, including the
preparation and approval of a test and evaluation master plan for each major
defense acquisition program.</text>
</subparagraph><subparagraph id="H0DC27B84A7E94E488CA94F00195200EC"><enum>(C)</enum><text>To participate in
and oversee the conduct of developmental testing, the analysis of data, and the
preparation of evaluations and reports based on such testing.</text>
</subparagraph></paragraph><paragraph id="HFE1D14FA812B4D899E6E5500EEF540C5"><enum>(2)</enum><header>First annual
report by Director of Developmental Test and Evaluation</header><text>The first
annual report submitted to Congress by the Director of Developmental Test and
Evaluation under section 139c(e) of title 10, United States Code (as added by
subsection (a)), shall be submitted not later than one year after the date of
the enactment of this Act, and shall include an assessment by the Director of
the reports submitted by the service acquisition executives to the Director
under paragraph (1).</text>
</paragraph></subsection></section><section id="HEA1BEFEA90434AC58F315E17AC4BD67E"><enum>103.</enum><header>Assessment of
technological maturity of critical technologies of major defense acquisition
programs by the Director of Defense Research and Engineering</header>
<subsection id="H81D8B958B303416E970027FCFC669F7C"><enum>(a)</enum><header>Assessment by
Director of Defense Research and Engineering</header>
<paragraph id="H078EFEE57DEF433F9D6CB21F27E2AD92"><enum>(1)</enum><header>In
general</header><text>Section 139a of title 10, United States Code, is amended
by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HEFFB311B43214BA78B4ED5CA06D27C1D" style="OLC">
<subsection id="H96E21D1E4F144918B8B18D886601909D"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H07F3F3E65F3D4A44ABAD174599F892D2"><enum>(1)</enum><text>The Director of Defense
Research and Engineering shall periodically review and assess the technological
maturity and integration risk of critical technologies of the major defense
acquisition programs of the Department of Defense and report on the findings of
such reviews and assessments to the Under Secretary of Defense for Acquisition,
Technology, and Logistics.</text>
</paragraph><paragraph id="H8F5AD78B32BF46C0B25EE2234800CAB4" indent="up1"><enum>(2)</enum><text>The Director shall submit to the
Secretary of Defense and to Congress each year a report on the technological
maturity and integration risk of critical technologies of the major defense
acquisition programs of the Department of
Defense.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDF67B17E247C4269B9C449DEF397993"><enum>(2)</enum><header>First annual
report</header><text>The first annual report under subsection (c)(2) of section
139a of title 10, United States Code (as added by paragraph (1)), shall be
submitted to Congress not later than March 1, 2011, and shall address the
results of reviews and assessments conducted by the Director of Defense
Research and Engineering pursuant to subsection (c)(1) of such section (as so
added) during the preceding calendar year.</text>
</paragraph></subsection><subsection id="H5D1280E7AFF24F8E9C029E53EEB00072"><enum>(b)</enum><header>Report on
resources for implementation</header><text>Not later than 120 days after the
date of the enactment of this Act, the Director of Defense Research and
Engineering shall submit to the congressional defense committees a report
describing any additional resources that may be required by the Director, and
by other science and technology elements of the Department of Defense, to carry
out the following:</text>
<paragraph id="H5D2A60C2D522479982DAF59EBA2D4A0"><enum>(1)</enum><text>The requirements
under the amendment made by subsection (a).</text>
</paragraph><paragraph id="H68AB3153C03F42F6A8D25EAE00BF8E4B"><enum>(2)</enum><text>The technological
maturity assessments required by section 2366b(a) of title 10, United States
Code, as amended by section 202 of this Act.</text>
</paragraph><paragraph id="H8B2740A32A86440798E57211DE82D002"><enum>(3)</enum><text>The requirements
of Department of Defense Instruction 5000, as revised.</text>
</paragraph></subsection></section><section id="H0D073DE8A1194705A0069FD0FF36B7AD"><enum>104.</enum><header>Director of
Independent Cost Assessment</header>
<subsection id="H67240A49613E4324B0765882DB5EEA1D"><enum>(a)</enum><header>Director of
Independent Cost Assessment</header>
<paragraph id="H0A868F7A13944269AC8003009F418BC1"><enum>(1)</enum><header>In
general</header><text>Chapter 4 of title 10, United States Code, as amended by
section 102 of this Act, is further amended by inserting after section 139c the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H294A60C7C4EC49CCB183C623905357E5" style="USC">
<section id="HD5CA2EC9594D4B61B5793918EFB63EB9"><enum>139d.</enum><header>Director of
Independent Cost Assessment</header>
<subsection id="H7AD04DF9855348BE9211D62F1EA800CF"><enum>(a)</enum><text>There is a
Director of Independent Cost Assessment in the Department of Defense, appointed
by the President, by and with the advice and consent of the Senate. The
Director shall be appointed without regard to political affiliation and solely
on the basis of fitness to perform the duties of the Director.</text>
</subsection><subsection id="H9EE38CA31A334A2F8953E7EE84C60CE"><enum>(b)</enum><text>The Director is the
principal advisor to the Secretary of Defense, the Under Secretary of Defense
for Acquisition, Technology, and Logistics, and the Under Secretary of Defense
(Comptroller) on cost estimation and cost analyses for the acquisition programs
of the Department of Defense and the principal cost estimation official within
the senior management of the Department of Defense. The Director shall—</text>
<paragraph id="H50E379EAB0674F61A909403E92397468"><enum>(1)</enum><text>prescribe, by
authority of the Secretary of Defense, policies and procedures for the conduct
of cost estimation and cost analysis for the acquisition programs of the
Department of Defense;</text>
</paragraph><paragraph id="HAD3D3C797B044C0795A52CE4E2BC00B"><enum>(2)</enum><text>provide guidance to
and consult with the Secretary of Defense, the Under Secretary of Defense for
Acquisition, Technology, and Logistics, the Under Secretary of Defense
(Comptroller), and the Secretaries of the military departments with respect to
cost estimation in the Department of Defense in general and with respect to
specific cost estimates and cost analyses to be conducted in connection with a
major defense acquisition program under chapter 144 of this title or a major
automated information system program under chapter 144A of this title;</text>
</paragraph><paragraph id="H88E755DC212A42809800F9F444C455AE"><enum>(3)</enum><text>establish guidance
on confidence levels for cost estimates on major defense acquisition programs
and require the disclosure of all such confidence levels;</text>
</paragraph><paragraph id="H2FC891B2CBBF4A7C86DFDD00D43DDBF"><enum>(4)</enum><text>monitor and review
all cost estimates and cost analyses conducted in connection with major defense
acquisition programs and major automated information system programs;
and</text>
</paragraph><paragraph id="H4718A334AD304B448814A85D5318C984"><enum>(5)</enum><text>conduct
independent cost estimates and cost analyses for major defense acquisition
programs and major automated information system programs—</text>
<subparagraph id="H81B357E530FD40CD9668F2A29200E750"><enum>(A)</enum><text>in advance
of—</text>
<clause id="H7872BB94CFD44D3C9D00642E35AAAFC1"><enum>(i)</enum><text>any certification
under section 2366a or 2366b of this title;</text>
</clause><clause id="HF41ADEB5E39C4744A3207EC43B2EF694"><enum>(ii)</enum><text>any certification
under section 2433(e)(2) of this title; and</text>
</clause><clause id="HD3DE315538E74718BF1214FB44B7320"><enum>(iii)</enum><text>any report under
section 2445c(f) of this title; and</text>
</clause></subparagraph><subparagraph id="HE045059456AA44308C4CBB0123D5D518"><enum>(B)</enum><text>whenever necessary
to ensure that an estimate or analysis under paragraph (4) is unbiased, fair,
and reliable.</text>
</subparagraph></paragraph></subsection><subsection id="H398FF150969347C28CC2A381D545792"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HC886D9A615F14F37B1A25C3CF243CBDF"><enum>(1)</enum><text>The Director may
communicate views on matters within the responsibility of the Director directly
to the Secretary of Defense and the Deputy Secretary of Defense without
obtaining the approval or concurrence of any other official within the
Department of Defense.</text>
</paragraph><paragraph id="H0735BEBFC4F94F2C9B5B695000932C46" indent="up1"><enum>(2)</enum><text>The Director shall consult closely
with, but the Director and the Director’s staff shall be independent of, the
Under Secretary of Defense for Acquisition, Technology, and Logistics, the
Under Secretary of Defense (Comptroller), and all other officers and entities
of the Department of Defense responsible for acquisition and budgeting.</text>
</paragraph></subsection><subsection id="HED1C706AB0134264B3D6FC1500D16103"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H71325FB90A3847CCBE39E70752A9121B"><enum>(1)</enum><text>The Secretary of a
military department shall report promptly to the Director the results of all
cost estimates and cost analyses conducted by the military department and all
studies conducted by the military department in connection with cost estimates
and cost analyses for major defense acquisition programs of the military
department.</text>
</paragraph><paragraph id="H504983DA14D14110009C88E48E353508" indent="up1"><enum>(2)</enum><text>The Director may make comments on
cost estimates and cost analyses conducted by a military department for a major
defense acquisition program, request changes in such cost estimates and cost
analyses to ensure that they are fair and reliable, and develop or require the
development of independent cost estimates or cost analyses for such program, as
the Director determines to be appropriate.</text>
</paragraph><paragraph id="HAA91182AD3D14B24B6A01CCACD0809ED" indent="up1"><enum>(3)</enum><text>The Director shall have access to any
records and data in the Department of Defense (including the records and data
of each military department) that the Director considers necessary to review in
order to carry out the Director's duties under this section.</text>
</paragraph></subsection><subsection id="H18EF3F85662E4D0790755F8403DC8040"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H751746972EAF4AF499E4524FB1CDE417"><enum>(1)</enum><text>The Director shall
prepare an annual report summarizing the cost estimation and cost analysis
activities of the Department of Defense during the previous year and assessing
the progress of the Department in improving the accuracy of its costs estimates
and analyses.</text>
</paragraph><paragraph id="H5AFBC6AE12644248A3FF007FB5428D61" indent="up1"><enum>(2)</enum><text>Each report under this subsection
shall be submitted concurrently to the Secretary of Defense, the Under
Secretary of Defense for Acquisition, Technology, and Logistics, the Under
Secretary of Defense (Comptroller), and Congress not later than 10 days after
the transmission of the budget for the next fiscal year under section 1105 of
title 31. The Director shall ensure that a report submitted under this
subsection does not include any information, such as proprietary or source
selection sensitive information, that could undermine the integrity of the
acquisition process.</text>
</paragraph><paragraph id="H6E7C48B43D0440209FCA365FB0F4F6D7" indent="up1"><enum>(3)</enum><text>The Secretary may comment on any
report of the Director to Congress under this subsection.</text>
</paragraph></subsection><subsection id="H6AFA4BAC396146C5B7A8BCF4B8D3B41C"><enum>(f)</enum><text>The President
shall include in the budget transmitted to Congress pursuant to section 1105 of
title 31 for each fiscal year a separate statement of estimated expenditures
and proposed appropriations for that fiscal year for the Director of
Independent Cost Assessment in carrying out the duties and responsibilities of
the Director under this section.</text>
</subsection><subsection id="H8FBC43D1D54A4C4CAC60A81FCE9E317C"><enum>(g)</enum><text>The Secretary of
Defense shall ensure that the Director has sufficient professional staff of
military and civilian personnel to enable the Director to carry out the duties
and responsibilities of the Director under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1B9F73AC756842A9AB571F00147CD3E1"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title, as so amended, is further amended by inserting after the item
relating to section 139c the following new item:</text>
<quoted-block id="HCB11664BBF1D4FDD944BCB5335DC0035" style="USC">
<toc>
<toc-entry idref="HD5CA2EC9594D4B61B5793918EFB63EB9" level="section">139d. Director of Independent Cost
Assessment.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H283EF1DFF4AC476B985DEEF541505173"><enum>(b)</enum><header>Report on
monitoring of operating and support costs for MDAPs</header>
<paragraph id="H4E2BC70C6AB14299A85330FB3D00318F"><enum>(1)</enum><header>Report to
Secretary of Defense</header><text>Not later than one year after the date of
the enactment of this Act, the Director of Independent Cost Assessment under
section 139d of title 10 United States Code (as added by subsection (a)), shall
review existing systems and methods of the Department of Defense for tracking
and assessing operating and support costs on major defense acquisition programs
and submit to the Secretary of Defense a report on the finding and
recommendations of the Director as a result of the review.</text>
</paragraph><paragraph id="H8F9246322DB243748F1664A12D5FB180"><enum>(2)</enum><header>Transmittal to
Congress</header><text>Not later than 30 days after receiving the report
required by paragraph (1), the Secretary shall transmit the report to the
congressional defense committees, together with any comments on the report the
Secretary considers appropriate.</text>
</paragraph></subsection><subsection id="H9D7E6FE3673D4E8BAEFCA34F56E84E1"><enum>(c)</enum><header>Transfer of
personnel and functions of Cost Analysis Improvement Group</header><text>The
personnel and functions of the Cost Analysis Improvement Group of the
Department of Defense are hereby transferred to the Director of Independent
Cost Assessment under section 139d of title 10, United States Code (as so
added), and shall report directly to the Director.</text>
</subsection><subsection id="HFD61E90161DE43D1BE02BC80E74639FE"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="H6C73DD0EDE6B410AB67FD2D7A146F463"><enum>(1)</enum><text>Section
2306b(i)(1)(B) of title 10, United States Code, is amended by striking
<quote>Cost Analysis Improvement Group of the Department of Defense</quote> and
inserting <quote>Director of Independent Cost Assessment</quote>.</text>
</paragraph><paragraph id="H1B35789AB93F4D4F896B9037DA7CC7BC"><enum>(2)</enum><text>Section
2366a(a)(4) of such title is amended by striking “has been submitted” and
inserting <quote>has been approved by the Director of Independent Cost
Assessment</quote>.</text>
</paragraph><paragraph id="HFAF597E4A5C042A6A918186D10ECD477"><enum>(3)</enum><text>Section
2366b(a)(1)(C) of such title is amended by striking <quote>have been developed
to execute</quote> and inserting <quote>have been approved by the Director of
Independent Cost Assessment to provide for the execution of</quote>.</text>
</paragraph><paragraph id="HE4CF6A6AAB91472188EF00C102AD3F2D"><enum>(4)</enum><text>Section
2433(e)(2)(B)(iii) of such title is amended by striking <quote>are
reasonable</quote> and inserting <quote>have been determined by the Director of
Independent Cost Assessment to be reasonable</quote>.</text>
</paragraph><paragraph id="HC196024097DE4811B8B415E82E6F67D6"><enum>(5)</enum><text>Subparagraph (A)
of section 2434(b)(1) of such title is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBFDCD3CEB0004A0BBE43C6B36E88CA" style="OLC">
<subparagraph id="HC4D5AAA5183A4FD0A7789E40D1167FDA"><enum>(A)</enum><text>be prepared or
approved by the Director of Independent Cost Assessment;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1FFFC309B3BE4A4F98B6FD8092221D97"><enum>(6)</enum><text>Section
2445c(f)(3) of such title is amended by striking <quote>are reasonable</quote>
and inserting <quote>have been determined by the Director of Independent Cost
Assessment to be reasonable</quote>.</text>
</paragraph></subsection></section><section id="H7C04500DC93E4C929630F5DCC5966BFB"><enum>105.</enum><header>Role of the
commanders of the combatant commands in identifying joint military
requirements</header><text display-inline="no-display-inline">Section 181(d) of
title 10, United States Code, is amended—</text>
<paragraph id="HB9143BF386F34AC69DE2D111C200A140"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>The Under Secretary</quote>; and</text>
</paragraph><paragraph id="H1E3174CEC8CC48D3952230D55FDF06BC"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB4C6059F51364F04AA77F1C6E41BD0D9" style="OLC">
<paragraph id="H84F6F9ACE8E84F048CB4B265958EF67D" indent="up1"><enum>(2)</enum><text>The Council shall seek and consider
input from the commanders of the combatant commands in carrying out its mission
under paragraphs (1) and (2) of subsection (b) and in conducting periodic
reviews in accordance with the requirements of subsection
(e).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>II</enum><header>Acquisition
Policy</header>
<section id="H6B978057480E45078FCD07F65042F496"><enum>201.</enum><header>Consideration
of trade-offs among cost, schedule, and performance in the acquisition of major
weapon systems</header>
<subsection id="HD3F53C5BF77B46FFBA4BDC09187942"><enum>(a)</enum><header>Consideration of
trade-offs</header>
<paragraph id="HD80E2DF092CD4A0E869BEC1B67CAA494"><enum>(1)</enum><header>In
general</header><text>The Secretary of Defense shall develop and implement
mechanisms to ensure that trade-offs between cost, schedule, and performance
are considered as part of the process for developing requirements for major
weapon systems.</text>
</paragraph><paragraph id="H769C77E431F34369B4E7ED91924DBEB9"><enum>(2)</enum><header>Elements</header><text>The
mechanisms required under this subsection shall ensure, at a minimum,
that—</text>
<subparagraph id="H585A9A70A64F4EA9BE13FD213F36D6D6"><enum>(A)</enum><text>Department of
Defense officials responsible acquisition, budget, and cost estimating
functions are provided an appropriate opportunity to develop estimates and
raise cost and schedule matters before performance requirements are established
for major weapon systems; and</text>
</subparagraph><subparagraph id="HAB166C6D3EFA44D28E8F3F6DFAE7468C"><enum>(B)</enum><text>consideration is
given to fielding major weapon systems through incremental or spiral
acquisition, while deferring technologies that are not yet mature, and
capabilities that are likely to significantly increase costs or delay
production, until later increments or spirals.</text>
</subparagraph></paragraph><paragraph id="H23A2A34B4C8F49B79EC66F3023DA49B8"><enum>(3)</enum><header>Major weapons
system defined</header><text>In this subsection, the term <term>major weapon
system</term> has the meaning given that term in section 2379(d) of title 10,
United States Code.</text>
</paragraph></subsection><subsection id="H67287242C0D7497EB286272B222DD00"><enum>(b)</enum><header>Duties of Joint
Requirements Oversight Council</header><text>Section 181(b)(1) of title 10,
United States Code, is amended—</text>
<paragraph id="HBF9777A299154AC78218EF34EAC3ACC6"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HED0D381F76AF4B8387D9E36D3541FFA"><enum>(2)</enum><text>in
subparagraph (B), by striking the period at the end and inserting <quote>;
and</quote>; and</text>
</paragraph><paragraph id="HEDBD63F68104488E8B240000DA354F2E"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H62126064702A43CE0064E2FED28F159" style="OLC">
<subparagraph id="H4A1406EEC0CE426883D391932778ECC"><enum>(C)</enum><text>in ensuring the
consideration of trade-offs among cost, schedule and performance for joint
military
requirements;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H481A4DCA839547CA82AB9185506406DA"><enum>202.</enum><header>Preliminary
design review for major defense acquisition programs</header><text display-inline="no-display-inline">Section 2366b(a) of title 10, United States
Code, is amended—</text>
<paragraph id="HD4577CB305EB4B688DFD6941D7B686D"><enum>(1)</enum><text>in
paragraph (1), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H35FE20C4DB964578B9D2EB169736391"><enum>(2)</enum><text>by
redesignating paragraph (2) as paragraph (3);</text>
</paragraph><paragraph id="H2E0BB915F39646ADAE1962B39FE32E51"><enum>(3)</enum><text>by inserting after
paragraph (1) the following new paragraph (2):</text>
<quoted-block display-inline="no-display-inline" id="H6A8B65002DAF4811A9F3BDE69A2F350" style="OLC">
<paragraph id="H3EC8423CC72D4F07AEC890C020040628"><enum>(2)</enum><text>has received a
preliminary design review (PDR) and conducted a formal post-preliminary design
review assessment, and certifies on the basis of such assessment that the
program demonstrates a high likelihood of accomplishing its intended mission;
and</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H40F9BD3536214B89A097A60071110300"><enum>(4)</enum><text>in paragraph (3),
as redesignated by paragraph (2) of this section—</text>
<subparagraph id="H844D06121BDE41690063511900118983"><enum>(A)</enum><text>in subparagraph
(D), by striking the semicolon and inserting <quote>, as determined by the
Milestone Decision Authority on the basis of an independent review and
assessment by the Director of Defense Research and Engineering;
and</quote>;</text>
</subparagraph><subparagraph id="HC3401A41719C43B6815E50835601B5A2"><enum>(B)</enum><text>by striking
subparagraph (E); and</text>
</subparagraph><subparagraph id="H1D8849F979FE44B3882C4FF2AF98B2A9"><enum>(C)</enum><text>by redesignating
subparagraph (F) as subparagraph (E).</text>
</subparagraph></paragraph></section><section id="H7EDF6FDB2D6F429EABD70051C34167A4"><enum>203.</enum><header>Maximization of
competition throughout the life cycle of major defense acquisition
programs</header>
<subsection id="HB75EE3723B2E4F0689E2E560E21159D6"><enum>(a)</enum><header>Maximization of
competition</header><text>The Secretary of Defense shall ensure that the
acquisition plan for each major defense acquisition program includes measures
to maximize competition at both the prime contract level and the subcontract
level of such program throughout the life cycle of such program.</text>
</subsection><subsection id="H63EB0CAE5D2441CB91176CBDA4C13084"><enum>(b)</enum><header>Measures To
maximize competition</header><text>The measures to maximize competition
utilized for purposes of subsection (a) may include, but are not limited to,
measures to achieve the following, where cost-effective:</text>
<paragraph id="H3F2743254AC24A0D99CF4D2883CFFCD8"><enum>(1)</enum><text>Competitive
prototyping.</text>
</paragraph><paragraph id="H02C5B4FEFE4442F490ED4055D4698C8B"><enum>(2)</enum><text>Dual-sourcing.</text>
</paragraph><paragraph id="H41A8193B3EBD4AB981C3E3B0766B06AF"><enum>(3)</enum><text>Funding of a
second source for interchangeable, next-generation prototype systems or
subsystems.</text>
</paragraph><paragraph id="H086C1D3CD4D64315980060006526193B"><enum>(4)</enum><text>Utilization of
modular, open architectures to enable competition for upgrades.</text>
</paragraph><paragraph id="H5BF979443337454F94687BBBBFD6CDF0"><enum>(5)</enum><text>Periodic
competitions for subsystem upgrades.</text>
</paragraph><paragraph id="H73B8B9A9BF8C4F5A8FF240026278BDF"><enum>(6)</enum><text>Licensing of
additional suppliers.</text>
</paragraph><paragraph id="H1C4FE83C56C045589E925D0647800099"><enum>(7)</enum><text>Requirements for
Government oversight or approval of make or buy decisions to ensure competition
at the subsystem level.</text>
</paragraph><paragraph id="H2F06DCAAF9024C9CBF211226AD81E815"><enum>(8)</enum><text>Periodic system or
program reviews to address long-term competitive effects of program
decisions.</text>
</paragraph><paragraph id="HB7127D3982AF4E169157F65D57AA61BD"><enum>(9)</enum><text>Consideration of
competition at the subcontract level and in make or buy decisions as a factor
in proposal evaluations.</text>
</paragraph></subsection><subsection id="HC3FE564927D44734958BABF8DD00B100"><enum>(c)</enum><header>Competitive
prototyping</header><text>The Secretary of Defense shall modify the acquisition
regulations of the Department of Defense to ensure with respect to competitive
prototyping for major defense acquisition programs the following:</text>
<paragraph id="H1B8E4427201A40E38EA9B2DF4000769B"><enum>(1)</enum><text>That the
acquisition strategy for each major defense acquisition program provides for
two or more competing teams to produce prototypes before Milestone B approval
(or Key Decision Point B approval in the case of a space program) unless the
milestone decision authority for such program waives the requirement on the
basis of a determination that, but for such waiver, the Department would be
unable to meet critical national security objectives.</text>
</paragraph><paragraph id="HD182DEEAD5C74B7B8CCD9D2F86925209"><enum>(2)</enum><text>That if the
milestone decision authority waives the requirement for prototypes produced by
two or more teams for a major defense acquisition program under paragraph (1),
the acquisition strategy for the program provides for the production of at
least one prototype before Milestone B approval (or Key Decision Point B
approval in the case of a space program) unless the milestone decision
authority waives such requirement on the basis of a determination that, but for
such waiver, the Department would be unable to meet critical national security
objectives.</text>
</paragraph><paragraph id="H07A832881D684ACB8B23DCE8275E16B0"><enum>(3)</enum><text>That whenever a
milestone decision authority authorizes a waiver under paragraph (1) or (2),
the waiver, the determination upon which the waiver is based, and the reasons
for the determination are submitted in writing to the congressional defense
committees not later than 30 days after the waiver is authorized.</text>
</paragraph></subsection><subsection id="H5C36AD86F8314722AD12BD853756BC6F"><enum>(d)</enum><header>Major defense
acquisition program defined</header><text>In this section, the term <term>major
defense acquisition program</term> has the meaning given that term in section
2430 of title 10, United States Code.</text>
</subsection><subsection id="H9028188E6A9D41C6A244B2001CF3A073"><enum>(e)</enum><header>Applicability</header><text>This
section shall apply to any acquisition plan for a major defense acquisition
program that is developed or revised on or after the date that is 60 days after
the date of the enactment of this Act.</text>
</subsection></section><section id="H6091504E6BD84E839601B896481F73BF"><enum>204.</enum><header>Critical cost
growth in major defense acquisition programs</header>
<subsection id="H2FAD570BB1D545F8B7413BB869BE13DE"><enum>(a)</enum><header>Authorized
actions in event of critical cost growth</header><text>Section 2433(e)(2) of
title 10, United States Code, is amended—</text>
<paragraph id="H563F131DEC3840BA9B9C9B26E0E4CB94"><enum>(1)</enum><text>by redesignating
subparagraph (C) as subparagraph (D);</text>
</paragraph><paragraph id="H435A3264727B482C9DC6A0425B1409FA"><enum>(2)</enum><text>by striking
subparagraph (B); and</text>
</paragraph><paragraph id="HC82B0D00365549B79235EE665B28D5DB"><enum>(3)</enum><text>by inserting after
subparagraph (A) the following new subparagraphs (B) and (C):</text>
<quoted-block display-inline="no-display-inline" id="H52C55D4C5DBC427A9B9517DBBB032CAA" style="OLC">
<subparagraph id="HAA9D7CF0499F4157AD50ACD2E5A5309F" indent="up1"><enum>(B)</enum><text>terminate such acquisition program,
unless the Secretary determines that the continuation of such program is
essential to the national security of the United States and submits a written
certification in accordance with subparagraph (C)(i) accompanied by a report
setting forth the assessment carried out pursuant to subparagraph (A) and the
basis for each determination made in accordance with clauses (I) through (IV)
of subparagraph (C)(i), together with supporting documentation;</text>
</subparagraph><subparagraph id="H85EDA6790FEF4D6EA500EDB9F13B595E" indent="up1"><enum>(C)</enum><text>if the program is not
terminated—</text>
<clause id="H49E85059009748658F33C758A0CAA9B4"><enum>(i)</enum><text>submit to Congress, before the end
of the 60-day period beginning on the day the Selected Acquisition Report
containing the information described in subsection (g) is required to be
submitted under section 2432(f) of this title, a written certification stating
that—</text>
<subclause id="HD097BEF1A0964D23827E50DA34331532"><enum>(I)</enum><text>such acquisition program is essential to
national security;</text>
</subclause><subclause id="H84C21C5393BC47CE99C5FB2948837C87"><enum>(II)</enum><text>there are no alternatives to such
acquisition program which will provide equal or greater capability to meet a
joint military requirement (as that term is defined in section 181(g)(1) of
this title) at less cost;</text>
</subclause><subclause id="HCDB5FC3959C14296AD46E3C5DB0066EC"><enum>(III)</enum><text>the new estimates of the program
acquisition unit cost or procurement unit cost were arrived at in accordance
with the requirements of section 139d of this title and are reasonable;
and</text>
</subclause><subclause id="H77247B78C5C446DC865FA138FA6FE595"><enum>(IV)</enum><text>the management structure for the
acquisition program is adequate to manage and control program acquisition unit
cost or procurement unit cost;</text>
</subclause></clause><clause id="HC231D6E9E62E43289C4D1EC301ECB956"><enum>(ii)</enum><text>rescind the most recent Milestone
approval (or Key Decision Point approval in the case of a space program) for
such program and withdraw any associated certification under section 2366a or
2366b of this title; and</text>
</clause><clause id="H10B7C6BAED174A6287B11B00DA460400"><enum>(iii)</enum><text>require a new Milestone approval
(or Key Decision Point approval in the case of a space program) for such
program before entering into a new contract, exercising an option under an
existing contract, or otherwise extending the scope of an existing contract
under such program;
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8C72C55C6D514040AD7F487B3282F110"><enum>(b)</enum><header>Total
expenditure for procurement resulting in treatment as
MDAP</header><text>Section 2430(a)(2) of such title is amended by inserting
<quote>, including all planned increments or spirals,</quote> after <quote>an
eventual total expenditure for procurement</quote>.</text>
</subsection></section><section id="HF04910CFA05D4CC29E7E412B7DFCFD66"><enum>205.</enum><header>Organizational
conflicts of interest in the acquisition of major weapon systems</header>
<subsection id="H238469E5192446BAB9FEE9ACAA79110"><enum>(a)</enum><header>Revised
regulations required</header><text>Not later than 180 days after the date of
the enactment of this Act, the Under Secretary of Defense for Acquisition,
Technology, and Logistics shall revise the Defense Supplement to the Federal
Acquisition Regulation to address organizational conflicts of interest by
contractors in the acquisition of major weapon systems.</text>
</subsection><subsection id="H6BE7431915DB4F178F81AF4BABB7C2C"><enum>(b)</enum><header>Elements</header><text>The
revised regulations required by subsection (a) shall, at a minimum—</text>
<paragraph id="H741AA8E0371C4EC8BE5883E7FEE10B3"><enum>(1)</enum><text>ensure that the
Department of Defense receives advice on systems architecture and systems
engineering matters with respect to major weapon systems from federally funded
research and development centers or other sources independent of the prime
contractor;</text>
</paragraph><paragraph id="HB67554B937D14A2E91C0C56BA3C0941"><enum>(2)</enum><text>require that a
contract for the performance of systems engineering and technical assistance
(SETA) functions with regard to a major weapon system contains a provision
prohibiting the contractor or any affiliate of the contractor from having a
direct financial interest in the development or construction of the weapon
system or any component thereof; and</text>
</paragraph><paragraph id="HAE45B3EF912D4753B1685D8C3082BF0"><enum>(3)</enum><text>provide for fair
and objective <quote>make-buy</quote> decisions by the prime contractor on a
major weapon system by—</text>
<subparagraph id="H1D2026620AAC464AA4383636B8033B24"><enum>(A)</enum><text>requiring prime
contractors to give full and fair consideration to qualified sources other than
the prime contractor for the development or construction of major subsystems
and components of the weapon system;</text>
</subparagraph><subparagraph id="H8744BF028A4045D7B1382DCB67AC81C9"><enum>(B)</enum><text>providing for
government oversight of the process by which prime contractors consider such
sources and determine whether to conduct such development or construction
in-house or through a subcontract;</text>
</subparagraph><subparagraph id="H2725BBF6E584485CBBA7B0B4932929F5"><enum>(C)</enum><text>where appropriate,
requiring that program managers, rather than prime contractors, make the
determination whether such development or construction should be conducted
in-house or through a subcontract; and</text>
</subparagraph><subparagraph id="H6896870EF22D448CA9A0EE37F5BEF38E"><enum>(D)</enum><text>providing for the
consideration of prime contractors <quote>make-buy</quote> decisions in past
performance evaluations.</text>
</subparagraph></paragraph></subsection><subsection id="HFAE51D408B3043FAA024A7A76DE7118D"><enum>(c)</enum><header>Organizational
Conflict of Interest Review Board</header>
<paragraph id="H775EADF5DB8542C6B187BA8B2E99AB37"><enum>(1)</enum><header>Establishment
required</header><text>Not later than 90 days after the date of the enactment
of this Act, the Secretary of Defense shall establish within the Department of
Defense a board to be known as the <quote>Organizational Conflict of Interest
Review Board</quote>.</text>
</paragraph><paragraph id="HC5253F40388642649603381C4C3F2259"><enum>(2)</enum><header>Duties</header><text>The
Board shall have the following duties:</text>
<subparagraph id="HDACEC3841A6F47EEA159D209EDBEEB3E"><enum>(A)</enum><text>To advise the
Under Secretary of Defense for Acquisition, Technology, and Logistics on
policies relating to organizational conflicts of interest in the acquisition of
major weapon systems.</text>
</subparagraph><subparagraph id="H4BE040BD9B964C24ACF0C3D465E18907"><enum>(B)</enum><text>To advise program
managers on steps to comply with the requirements of the revised regulations
required by this section and to address organizational conflicts of interest in
the acquisition of major weapon systems.</text>
</subparagraph><subparagraph id="H905C33F740B24307BC93CB154B9B4367"><enum>(C)</enum><text>To advise
appropriate officials of the Department on organizational conflicts of interest
arising in proposed mergers of defense contractors.</text>
</subparagraph></paragraph></subsection><subsection id="H5B4EAC1A3E714D69ACFDF44977DCACE"><enum>(d)</enum><header>Major weapon
system defined</header><text>In this section, the term <term>major weapon
system</term> has the meaning given that term in section 2379(d) of title 10,
United States Code.</text>
</subsection></section><section id="H5569FF81B0A04F31B859B0AA006CBFED"><enum>206.</enum><header>Awards for
Department of Defense personnel for excellence in the acquisition of products
and services</header>
<subsection id="H82802805FB8C47BFBF853B4F6DAFD519"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary of Defense shall commence carrying out a program to
recognize excellent performance by individuals and teams of members of the
Armed Forces and civilian personnel of the Department of Defense in the
acquisition of products and services for the Department of Defense.</text>
</subsection><subsection id="H5895291A645F4249AF452C2984E12C18"><enum>(b)</enum><header>Elements</header><text>The
program required by subsection (a) shall include the following:</text>
<paragraph id="H255D170BFCBD49FDA3EBD38877873063"><enum>(1)</enum><text>Procedures for the
nomination by the personnel of the military departments and the Defense
Agencies of individuals and teams of members of the Armed Forces and civilian
personnel of the Department of Defense for eligibility for recognition under
the program.</text>
</paragraph><paragraph id="H77D216B6EBD7479B8796F356CE121549"><enum>(2)</enum><text>Procedures for the
evaluation of nominations for recognition under the program by one or more
panels of individuals from the government, academia, and the private sector who
have such expertise, and are appointed in such manner, as the Secretary shall
establish for purposes of the program.</text>
</paragraph></subsection><subsection id="HCF5B4C01B7054E46A0999B04F6F3C00"><enum>(c)</enum><header>Award of cash
bonuses</header><text>As part of the program required by subsection (a), the
Secretary may award to any individual recognized pursuant to the program a cash
bonus authorized by any other provision of law to the extent that the
performance of such individual so recognized warrants the award of such bonus
under such provision of law.</text>
</subsection></section>