1.Short title; table of contents
(a)This Act may be cited as the Weapons Acquisition System Reform Through Enhancing Technical Knowledge and Oversight Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Acquisition Organization
Sec. 101. Independent performance of acquisition oversight functions.
Sec. 102. Oversight of cost estimation.
Sec. 103. Oversight of systems engineering.
Sec. 104. Oversight of performance assessment.
Sec. 105. Assessment of technological maturity of critical technologies of major defense acquisition programs by the Director of Defense Research and Engineering.
Sec. 106. Role of the commanders of the combatant commands in identifying joint military requirements.
Title II—Acquisition Policy
Sec. 201. Acquisition strategies ensuring competition throughout the lifecycle of major defense acquisition programs.
Sec. 202. Additional requirements for certain major defense acquisition programs.
Sec. 203. Requirement for certification of major systems prior to Milestone B.
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.
Sec. 207. Consideration of trade-offs among cost, schedule, and performance in the acquisition of major weapon systems.
<enum>I</enum><header>Acquisition Organization</header>
<section id="H2A890BCCB7B341AF92BD8C9FCE6617F2" section-type="subsequent-section"><enum>101.</enum><header>Independent performance of acquisition oversight functions</header>
<subsection id="HD6E462A6724440B6BA7D500A0B7E2173" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text>Chapter 4 of title 10, United States Code, is amended by adding at the end the following new section:</text>
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<section id="H22DD6E00B0EF40E880B2EB84EFD8B294"><enum>145. </enum><header>Principal advisors for acquisition oversight functions</header>
<subsection id="H7228DBC1C9C841DD8C623C07678DFAA5"><enum>(a)</enum><header>Assignment of acquisition oversight functions</header><text>The Secretary of Defense shall designate an official within the Office of the Secretary of Defense as the principal advisor to the Secretary for each acquisition oversight function specified in subsection (c). An official may be designated to perform one or more of such functions. The performance of duties pursuant to a designation under this section shall not limit or otherwise affect the performance of any other duties assigned to such official by the Secretary or by other officers of the Department responsible for the management and direction of such official except as necessary to satisfy the requirements of subsection (b). </text></subsection>
<subsection id="HA303D5858918481AA030B62739183D86" display-inline="no-display-inline"><enum>(b)</enum><header>Qualifications</header><text>In designating an official for a function pursuant to subsection (a), the Secretary shall ensure that the official reports directly to the Secretary in the performance of such function and is—</text>
<paragraph id="H51359228B81D4C21A625307F23396D86"><enum>(1)</enum><text>highly expert in matters relating to the function;</text></paragraph>
<paragraph id="H71F2698E2371464BAA35AFFAA8F3768F"><enum>(2)</enum><text>assigned the appropriate staff and resources necessary to carry out the function;</text></paragraph>
<paragraph id="HB46B2B2DEFF84962BDD6B78AFAC32B01"><enum>(3)</enum><text>independent from those engaged in the execution of acquisition programs;</text></paragraph>
<paragraph id="HF5FAD9577C40485794E0C400FF19D813"><enum>(4)</enum><text>free of any undue political influence; and</text></paragraph>
<paragraph id="H143438723BE84B92940C84D7A1F5564A"><enum>(5)</enum><text>free of any personal conflict of interest.</text></paragraph></subsection>
<subsection id="H20AB907349484604818043678D4811CC"><enum>(c)</enum><header>Acquisition oversight functions</header>
<paragraph id="H327268987D6A476E8B11C6CCF7CA00C4" display-inline="yes-display-inline"><enum>(1)</enum><text>The acquisition oversight functions to be performed by officials designated pursuant to subsection (a) are as follows:</text>
<subparagraph id="HB1D0CDBE6EF34470B44186FB2D38E137" indent="up1"><enum>(A)</enum><text>Cost estimation.</text></subparagraph>
<subparagraph id="HD3E93F508E1E444B821960F3C886F1BE" indent="up1"><enum>(B)</enum><text>Systems engineering.</text></subparagraph>
<subparagraph id="HCFEAD79C74714E288277A1ADCF196F70" indent="up1"><enum>(C)</enum><text>Performance assessment.</text></subparagraph>
<subparagraph id="HAF7FDC06C37646A080D6F47EF1D693E5" indent="up1"><enum>(D)</enum><text>Such other acquisition functions as the Secretary considers appropriate.</text></subparagraph></paragraph>
<paragraph id="H5D8C23DA2DDE4F3DA94F62DB8F3C0766" indent="up1"><enum>(2)</enum><text>Each acquisition oversight function specified in paragraph (1) shall cover all phases of an acquisition program, including setting of requirements, formulation and execution of budgets, and program execution.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HCF3AD42E3A074DA68108AB3DD6C4A03E"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections at the beginning of such chapter is amended by adding at the end the following new item:</text>
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<toc-entry level="section">145. Principal advisors for acquisition oversight functions.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H10B3854D4AE247849773749AEFFC0243"><enum>102.</enum><header>Oversight of cost estimation</header>
<subsection id="H42248A899442437A8B17978E634D5871"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section:</text>
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<section id="H8C87F4BF6A36462AA83F8223EADE996A"><enum>2334.</enum><header>Acquisition oversight: oversight of cost estimation</header>
<subsection id="H783D4CDCF8DE4B129B62E6CA3A5EAA12"><enum>(a)</enum><header>Issuance of policies, procedures, guidance, and cost estimates</header><text display-inline="yes-display-inline">The official assigned oversight of cost estimation pursuant to section 145 of this title shall issue the following:</text>
<paragraph id="HC3162DD6A3A4412BBCE81319D446623E"><enum>(1)</enum><text>Policies and procedures governing the conduct of cost estimation and cost analysis generally for the acquisition programs of the Department of Defense.</text></paragraph>
<paragraph id="H4EEAE6561E354B469C394B48F23A1B6E"><enum>(2)</enum><text>Guidance relating to cost estimates and cost analyses conducted in connection with major defense acquisition programs under chapter 144 of this title or major automated information system programs under chapter 144A of this title.</text></paragraph>
<paragraph id="HA25DB858BA2E4322808B820F4461CB29"><enum>(3)</enum><text>Guidance relating to the proper selection of confidence levels for cost estimates generally, and specifically, for the proper selection of confidence levels for cost estimates for major defense acquisition programs under chapter 144 of this title or major automated information system program under chapter 144A of this title.</text></paragraph>
<paragraph id="HCD69FA80B10042F7ACF0D2DAD9E65825" display-inline="no-display-inline"><enum>(4)</enum><text display-inline="yes-display-inline">Guidance relating to full consideration of life-cycle management and sustainability costs of major defense acquisition programs under chapter 144 of this title or major automated information system programs under chapter 144A of this title.</text></paragraph>
<paragraph id="HE237ED0A509D44C88C8C09D254A59384"><enum>(5)</enum><text>Independent cost estimates and cost analyses for major defense acquisition programs and major automated information system programs for which the Under Secretary of Defense for Acquisition, Technology, and Logistics is the Milestone Decision Authority—</text>
<subparagraph id="H8393B76AAD7D424D8172CB7A42E8A440"><enum>(A)</enum><text>in advance of—</text>
<clause id="H1789A774EB69458BA295BB6E2BB25E89"><enum>(i)</enum><text>any certification under section 2366a or 2366b of title 10, United States Code;</text></clause>
<clause id="HEDCC2EA0B0E34CB3B79D0454E200CF68"><enum>(ii)</enum><text>any decision to enter into low-rate initial production or full-rate production;</text></clause>
<clause id="HE141E778FB484F86B5DBCC3C65D058F9"><enum>(iii)</enum><text>any certification under section 2433(e)(2) of this title; and</text></clause>
<clause id="HF61F09D3D6694298B7A3BE4BE56963C7"><enum>(iv)</enum><text>any report under section 2445c(f) of this title; and</text></clause></subparagraph>
<subparagraph id="H611AE91CA16144DC99F4D3201ABCB6D4"><enum>(B)</enum><text>at any other time considered necessary by such official or upon the request of the Under Secretary of Defense for Acquisition, Technology, and Logistics.</text></subparagraph></paragraph></subsection>
<subsection id="H2103B113FC1740129235CF1EFF5F95F1" display-inline="no-display-inline"><enum>(b)</enum><header>Review of cost estimates, cost analyses, cost indexes, and records of the military departments</header><text>The Secretary of Defense shall ensure that the official designated for oversight of cost estimation pursuant to section 145 of this title—</text>
<paragraph id="H557257E571524C8493083E51F37A75BD"><enum>(1)</enum><text>promptly receives the results of all cost estimates and cost analyses conducted by the military departments, and all studies conducted by the military departments in connection with such cost estimates and cost analyses, for major defense acquisition programs and major automated information systems of the military departments, and is authorized to comment on such estimates, analyses, and studies; and</text></paragraph>
<paragraph id="HDF973D3A3AB0419DADA282190CE7100C"><enum>(2)</enum><text>has timely access to any records and data in the Department of Defense (including the records and data of each military department and including classified and proprietary information as appropriate) that the official considers necessary to review in order to carry out any duties under this section.</text></paragraph></subsection>
<subsection id="H0CA54F80FDE5416AACD879D3FC4035E6"><enum>(c)</enum><header>Participation, concurrence, and approval in cost estimation</header><text>The Secretary of Defense shall ensure that the official designated for oversight of cost estimation pursuant to section 145 of this title is involved in all discussions relating to cost estimation and the estimation of resource levels required for major defense acquisition programs and major automated information systems of the Department of Defense generally at all stages of such programs and may—</text>
<paragraph id="H676FA8A810D84461B747E1E690ED6D14"><enum>(1)</enum><text>participate in the formulation of study guidance for analyses of alternatives for major defense acquisition programs;</text></paragraph>
<paragraph id="HFB8754787CCD47758E10A4DA85F6FFB1"><enum>(2)</enum><text display-inline="yes-display-inline">participate in discussion of resources associated with requirements;</text></paragraph>
<paragraph id="H0C031298B808449C8C1505C43B850394"><enum>(3)</enum><text>participate in the discussion of any discrepancies between an independent cost estimate and the cost estimate of a military department for a major defense acquisition program or major automated information system of the Department of Defense;</text></paragraph>
<paragraph id="HE514EAD0BA4D438EBEAD142FB846FD89"><enum>(4)</enum><text>approve or disapprove, at such official’s sole discretion, the confidence level used in establishing a baseline description or budget estimate for a major defense acquisition program or major automated information system of the Department of Defense at any of the events specified in paragraph (5) of subsection (a) of this section;</text></paragraph>
<paragraph id="H7325D15DEBF948B7B8C74469A2DD00FD"><enum>(5)</enum><text>concur in the choice of a baseline description or budget estimate for use at any of the events specified in paragraph (5) of subsection (a) of this section; and</text></paragraph>
<paragraph id="HA5BA986D74FC4C35B4AE156A2ABD833B"><enum>(6)</enum><text>participate in consideration of any decision to request authorization of a multiyear procurement contract for a major defense acquisition program.</text></paragraph></subsection>
<subsection id="HF4916A6AADD54B499620553BD0D1E3AF" display-inline="no-display-inline"><enum>(d)</enum><header>Disclosure of confidence levels for baseline estimates of major defense acquisition programs</header><text display-inline="yes-display-inline">The official designated to perform oversight of cost estimation pursuant to section 145 of this title, in approving a confidence level for use in a major defense acquisition program pursuant to subsection (c)(4), shall—</text>
<paragraph id="HB51EE9F122624FDCAF589662B78F9C37"><enum>(1)</enum><text>disclose the confidence level used in establishing a baseline estimate for the major defense acquisition program, the rationale for selecting such confidence level, and, if such confidence level is less than 80 percent, the justification for selecting a confidence level of less than 80 percent; and</text></paragraph>
<paragraph id="H5A3B6E9B7AA24BDC8836ACE809D606F5"><enum>(2)</enum><text>include the disclosure required by paragraph (1) in any decision documentation approving a baseline estimate for the major defense acquisition program, in the next Selected Acquisition Report pursuant to section 2432 of this title for the major defense acquisition program, and in the next annual report submitted under subsection (f).</text></paragraph></subsection>
<subsection id="HD66291A9F36440469DADAEC20EA00A9B"><enum>(e)</enum><header>Relationship to cost analysis improvement group</header><text>The official designated to perform oversight of cost estimation pursuant to section 145 of this title shall be assigned responsibility for the management and oversight of the Cost Analysis Improvement Group of the Department of Defense.</text></subsection>
<subsection id="HFF81CE36BAF848B08FED2C3605399E01"><enum>(f)</enum><header>Annual Report</header><text display-inline="yes-display-inline">Not later than March 1 of each year, beginning on March 1, 2010, the official designated to perform oversight of cost estimation pursuant to section 145 of this title shall submit to the congressional defense committees a report on the activities undertaken pursuant to this section during the preceding year. The report shall be in an unclassified form but may include a classified annex.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6E10F249A1F943A597867D91D3F8F65B"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections at the beginning of such chapter is amended by adding at the end the following new item:</text>
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<toc regeneration="no-regeneration">
<toc-entry level="section">2334. Acquisition oversight: oversight of cost estimation.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="HA188EA4AAEAB42639F6308C0CACC2D5C"><enum>103.</enum><header>Oversight of systems engineering</header>
<subsection id="H90D7B813864441BB95CED8570BB6C95C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Chapter 137 of title 10, United States Code, as amended by section 102, is further amended by adding at the end the following new section:</text>
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<section id="HD9BE9F310884410AAC190731FC64558B"><enum>2334a.</enum><header>Acquisition oversight: oversight of systems engineering</header>
<subsection id="H57455A17FB034D7A97761D167CB5C30F"><enum>(a)</enum><header>Issuance of policies, procedures, and guidance</header><text>The official designated to perform oversight of systems engineering pursuant to section 145 of this title shall—</text>
<paragraph id="H9DA270A7AC854BDC95806E54AADA811D"><enum>(1)</enum><text>issue policies, procedures, and guidance for all elements of the Department of Defense concerning—</text>
<subparagraph id="H4FC87184D57A473B869FF1231DEB623E"><enum>(A)</enum><text>the use of systems engineering principles and best practices, generally;</text></subparagraph>
<subparagraph id="H279254B3C9774570A27B958A307D45D4"><enum>(B)</enum><text>the use of systems engineering approaches to enhance reliability, availability, and maintainability on major defense acquisition programs;</text></subparagraph>
<subparagraph id="HF8DCF2CE5F674582802B0046D738C22A"><enum>(C)</enum><text display-inline="yes-display-inline">the development of systems engineering master plans for major defense acquisition programs, including systems engineering considerations in support of life-cycle management and sustainability;</text></subparagraph>
<subparagraph id="H8A9AF30F5C83454CA807B671F86083D9"><enum>(D)</enum><text>the inclusion of provisions relating to systems engineering and reliability growth in requests for proposals;</text></subparagraph>
<subparagraph id="H2659E866D27C496DAF5A705700820859" display-inline="no-display-inline"><enum>(E)</enum><text display-inline="yes-display-inline">the appropriate use of development planning to reduce the time from system development to deployment, to reduce development risk and cost growth, and to provide future benchmarks against which to trade requirements, cost, and schedule;</text></subparagraph>
<subparagraph id="H1A552173D4CD4F72AFA97E942CDBB23C"><enum>(F)</enum><text>developmental test and evaluation generally;</text></subparagraph>
<subparagraph id="H62E1F54228D64E1FB5DFE71C5B2DFD16"><enum>(G)</enum><text>in coordination with the Director of Operational Test and Evaluation, the integration of developmental test and evaluation with operational test and evaluation;</text></subparagraph>
<subparagraph id="H1160B30A29C343B9BFBD3709C32D916B"><enum>(H)</enum><text>in coordination with the Director of Operational Test and Evaluation, the development of test and evaluation master plans for major defense acquisition programs; and</text></subparagraph>
<subparagraph id="H91AF093C1CBB410F8D4B30B43930B96E"><enum>(I)</enum><text>the use of developmental test and evaluation as part of a coordinated systems engineering approach to system development; and</text></subparagraph></paragraph>
<paragraph id="HEC9FE2A1E209436D90882A9CB54F8643"><enum>(2)</enum><text display-inline="yes-display-inline">provide advocacy, oversight, and direction to elements of the acquisition workforce responsible for functions relating to systems engineering, developmental test and evaluation, and life-cycle management and sustainability.</text></paragraph></subsection>
<subsection id="H888160468ACB425CAFCDF66844BED7A1"><enum>(b)</enum><header>Participation in requirements discussions</header><text>The official designated to perform oversight of systems engineering pursuant to section 145 of this title shall provide input on the inclusion of systems engineering requirements in the process for consideration of joint military requirements by the Joint Requirements Oversight Council pursuant to section 181 of title 10, United States Code, including specific input relating to each capabilities development document.</text></subsection>
<subsection id="H4F9A151C90E24F0BA52C4463E428254E"><enum>(c)</enum><header>Access to records of the military departments</header><text>The official designated to perform oversight of systems engineering pursuant to section 145 of this title shall have access to any records or data of the Department of Defense (including the records and data of each military department and including classified and proprietary information as appropriate) that the official considers necessary to review in order to carry out any duties under this section.</text></subsection>
<subsection id="HCFA70C9E28DE4844BED3B769E241C738"><enum>(d)</enum><header>Assessment of military department capabilities for systems engineering and developmental test and evaluation</header><text>The official designated to perform oversight of systems engineering pursuant to section 145 of this title shall—</text>
<paragraph id="HBA07CEF2C62A498FA072847CAB8DA671"><enum>(1)</enum><text>periodically assess the capabilities of the military departments for systems engineering (including development planning) and developmental test and evaluation;</text></paragraph>
<paragraph id="H09CB0466855545348B20D8E619833FB7"><enum>(2)</enum><text>provide such assessment, along with such recommendations for improvement as the official considers necessary, to the Secretary of Defense and the Under Secretary of Defense for Acquisition, Technology, and Logistics; and</text></paragraph>
<paragraph id="H5E3537AF606A4028BBCE99854B133EE2"><enum>(3)</enum><text>include such assessment and recommendations in the annual report required by subsection (g).</text></paragraph></subsection>
<subsection id="H69335FC1C72E426297A65C30F5B98671"><enum>(e)</enum><header>Review and Approval of Plans for Major Defense Acquisition Programs</header><text>The official designated to perform oversight of systems engineering pursuant to section 145 of this title shall review and approve the following plans with respect to any major defense acquisition program:</text>
<paragraph id="H20000ECBCF5C4BE9882B6D506005A2FF"><enum>(1)</enum><text>The systems engineering master plan.</text></paragraph>
<paragraph id="H2CA137A5D50F4991B0454138B2DE71F2"><enum>(2)</enum><text>The developmental test and evaluation plan within the test and evaluation master plan.</text></paragraph></subsection>
<subsection id="H2EB7F8092AE54B0D92BD3593658F2002"><enum>(f)</enum><header>Reporting through Under Secretary</header><text display-inline="yes-display-inline">The official designated to perform oversight of systems engineering pursuant to section 145 of this title shall report to the Secretary of Defense through the Under Secretary of Defense for Acquisition, Technology, and Logistics.</text></subsection>
<subsection id="H12F4984EE8EF4F02B8AF906F16D944F0"><enum>(g)</enum><header>Annual Report</header><text display-inline="yes-display-inline">Not later than March 1 of each year, beginning on March 1, 2010, the official designated to perform oversight of systems engineering pursuant to section 145 of this title shall submit to the congressional defense committees a report on the activities undertaken pursuant to this section during the preceding year. The report shall be in unclassified form but may include a classified annex.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H8960A4F9F655401B92C908AF82C39B55"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections at the beginning of such chapter, as amended by section 102, is further amended by adding at the end the following new item:</text>
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<toc-entry level="section">2334a. Acquisition oversight: oversight of systems engineering.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H048C86448F904A8A9873FD8EBC94579F"><enum>104.</enum><header>Oversight of performance assessment</header>
<subsection id="HE19EDC5AA27F4AB7990646A2293C1D17"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Chapter 137 of title 10, United States Code, as amended by section 103, is further amended by adding at the end the following new section:</text>
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<section id="H891ABF305A5A45E28675A1A6E808FB93"><enum>2334b.</enum><header>Acquisition oversight: oversight of performance assessment</header>
<subsection id="HF7A861A3FAFB4299AEF1D33C759C4030"><enum>(a)</enum><header>Issuance of policies, procedures, and guidance for performance assessments</header><text>The official designated to perform oversight of performance assessment pursuant to section 145 of this title shall be responsible for the issuance of policies, procedures, and guidance governing the conduct of performance assessments for the acquisition programs of the Department of Defense, including assessment of the extent to which acquisition programs—</text>
<paragraph id="HEA42A3A6734C4F21BB8075C60F87863F"><enum>(1)</enum><text>deliver sufficient capability to the warfighter;</text></paragraph>
<paragraph id="HFF2B4D79C66F46479A60DE1171EA91EF"><enum>(2)</enum><text>achieve timely delivery of such capability; and</text></paragraph>
<paragraph id="HED95B6B28F3E4AF0A254833B2DF85702"><enum>(3)</enum><text>deliver a level of value consistent with resources expended.</text></paragraph></subsection>
<subsection id="H0D6F3B1342544FB5883EF3CB18B29C8A"><enum>(b)</enum><header>Assessment of baseline quality</header><text>The official designated to perform oversight of performance assessment pursuant to section 145 of this title shall periodically assess the suitability of the baseline descriptions required by section 2435 of title 10, United States Code, of major defense acquisition programs for providing a basis for performance assessment and make such recommendations to the Secretary of Defense and the Under Secretary of Defense for Acquisition, Technology, and Logistics as the official considers necessary to improve the suitability of baseline descriptions for such purpose.</text></subsection>
<subsection id="H06AE752BDE0049679E79D8C95C36013B"><enum>(c)</enum><header>Earned value management system</header><text>The official designated to perform oversight of performance assessment pursuant to section 145 of this title shall be responsible for the management and oversight of the records of the earned value management system of the Department of Defense.</text></subsection>
<subsection id="H3FCF4901D4D04BA892A0B7CC37916CD9"><enum>(d)</enum><header>Participation in Certain Program Reviews</header><text>The official designated to perform oversight of performance assessment pursuant to section 145 of this title is authorized to present an assessment of the performance of a major defense acquisition program during—</text>
<paragraph id="H97203EA329E041D090AD0317CC81F1D7"><enum>(1)</enum><text>any discussions prior to certification under section 2433(e)(2) of this title; </text></paragraph>
<paragraph id="HDF3EDCE8C06F4D6CB710AE146F5805BB"><enum>(2)</enum><text>any discussions prior to entry into full-rate production; and</text></paragraph>
<paragraph id="H10F19A9B85C54C75B7F1528CFE420B66"><enum>(3)</enum><text>consideration of any decision to request authorization of a multiyear procurement contract for a major defense acquisition program.</text></paragraph></subsection>
<subsection id="H2779319D9E944A59BDA9EDC4F1EADA69" display-inline="no-display-inline"><enum>(e)</enum><header>Annual Report</header><text display-inline="yes-display-inline">Not later than March 1 of each year, beginning on March 1, 2010, the official designated to perform oversight of performance assessment pursuant to section 145 of this title shall submit to the congressional defense committees a report on the activities undertaken pursuant to this section during the preceding year. The report shall be in unclassified form but may include a classified annex.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HFD03AE15B58D4FD2B31EF5BD3DD818F8"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections at the beginning of such chapter, as amended by section 103, is further amended by adding at the end the following new item: </text>
<quoted-block style="USC" id="H6180649FCBB54C93867BAB9D1B6BD710" display-inline="no-display-inline">
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<toc-entry level="section">2334b. Acquisition oversight: oversight of performance assessment.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="H5545711A4DAC4D86AB2C80FB1CD14475" display-inline="no-display-inline" section-type="subsequent-section"><enum>105.</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="H39C6BFE2CF6942509310B778D76F87BF"><enum>(a)</enum><header>Assessment by Director of Defense Research and Engineering</header>
<paragraph id="HE294A0EF370D461EBE0B340DACDFA634"><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>
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<subsection id="H9C2E7EAF8342430BBD454E00E46F6868"><enum>(c)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="H41413FFB4358476C8A9D78469CE162B6"><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="H4D7E743E38F54E45BAA9F7359D778D38" indent="up1"><enum>(2)</enum><text>The Director shall submit to the Secretary of Defense and to the congressional defense committees by January 1 of 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="H0AEE746148404D4597ADADD50E3B01A7"><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 the congressional defense committees 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="HD217275131B84BCD90EB59B2005B3973"><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 research and engineering elements of the Department of Defense, to carry out the following:</text>
<paragraph id="HC2C0994E8C214EC5B0F911B4C9D6FE54"><enum>(1)</enum><text>The requirements under the amendment made by subsection (a)(1).</text></paragraph>
<paragraph id="HD3382FCC88BF46EDA5F728BDE9E0804E"><enum>(2)</enum><text>The technological maturity assessments required by section 2366b(a) of title 10, United States Code.</text></paragraph>
<paragraph id="HB51656F9FEF2466B8FF917A44B8ABFC0"><enum>(3)</enum><text>The requirements of Department of Defense Instruction 5000, as revised.</text></paragraph></subsection></section>
<section id="HD0267D6871084AC48131FAD9DB84A6E2" display-inline="no-display-inline" section-type="subsequent-section"><enum>106.</enum><header>Role of the commanders of the combatant commands in identifying joint military requirements</header>
<subsection id="H92BC28EDDFB34737BF73D0D8673EFCFD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 181(d) of title 10, United States Code, is amended—</text>
<paragraph id="H723351D8A8754CA5AD96D5E8286C0153"><enum>(1)</enum><text>by inserting <quote>(1)</quote> before <quote>The Under Secretary</quote>; and</text></paragraph>
<paragraph id="H3C893A42D5FB43AFA2F909BB0D8CE264"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2654CBCFAAC44E65AEDA6FF3BE03A8B8" style="OLC">
<paragraph id="HA948C5D0FE4C4035AE5E82179B0B3493" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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). Such input may include, but is not limited to, an assessment of the following:</text>
<subparagraph id="HE6AD2A93DFA34F0990AB4AF53B911595"><enum>(A)</enum><text>Any current or projected missions or threats in the theater of operations of the commander of a combatant command that would inform the assessment of a new joint military requirement.</text></subparagraph>
<subparagraph id="H0F40996CC9B24E569B6A1C1BB37C5A96"><enum>(B)</enum><text>The necessity and sufficiency of a proposed joint military requirement in terms of current and projected missions or threats.</text></subparagraph>
<subparagraph id="H67C71D5A8F554EB980E53A7C35C1263A"><enum>(C)</enum><text>The relative priority of a proposed joint military requirement in comparison with other joint military requirements within the theater of operations of a commander of a combatant command.</text></subparagraph>
<subparagraph id="HC58E705E3849498F97493FE26481B47B"><enum>(D)</enum><text>The ability of partner nations in the theater of operations of the commander of a combatant command to assist in meeting the joint military requirement or the benefit, if any, of a partner nation assisting in development or use of technologies developed to meet the joint military requirement.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE46C70B1ABD94C49A659E33604B5AD68"><enum>(b)</enum><header>Comptroller General of the United States review of implementation</header><text>Not later than two years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the implementation of the requirements of (1) subsection (d)(2) of section 181 of title 10, United States Code (as amended by subsection (a)), for the Joint Requirements Oversight Council to solicit and consider input from the commanders of the combatant commands, and (2) subsection (b) of section 181 of title 10, United States Code (as amended by section 942 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 287)). The report shall include, at a minimum, an assessment of the extent to which the Council has effectively sought, and the commanders of the combatant commands have provided, meaningful input on proposed joint military requirements.</text></subsection></section>
<enum>II</enum><header>Acquisition Policy</header>
<section id="HB805AA44C6FD47329D4FBD42C1864F7F"><enum>201.</enum><header>Acquisition strategies ensuring competition throughout the lifecycle of major defense acquisition programs</header><text display-inline="yes-display-inline"></text>
<subsection id="H2904006F9D9848619D8C06B91FB21880"><enum>(a)</enum><header>Acquisition Strategy Ensuring Competition</header><text>The Secretary of Defense shall ensure that the acquisition strategy for each major defense acquisition program includes—</text>
<paragraph id="H15ADC97CCAD149D59E69048B44FDDB59"><enum>(1)</enum><text>measures to ensure competition, or the option of competition, at both the prime contract level and the subcontract level (at such tier or tiers as are appropriate) of such program throughout the life-cycle of such program as a means to improve contractor performance; and</text></paragraph>
<paragraph id="HFF1DE63DFDFA4B969F6F316845343A2C"><enum>(2)</enum><text>adequate documentation of the rationale for the selection of the subcontract tier or tiers under paragraph (1). </text></paragraph></subsection>
<subsection id="HB9F53B17982E409897D794ED2621935F"><enum>(b)</enum><header>Measures To Ensure Competition</header><text>The measures to ensure competition, or the option of competition, for purposes of subsection (a) may include measures to achieve the following, in appropriate cases if such measures are cost-effective:</text>
<paragraph id="HFF695C981EA049A7AF6677BD326B16D1"><enum>(1)</enum><text>Competitive prototyping.</text></paragraph>
<paragraph id="H6FA088E6EB7847A38C76C989AC12EBDC"><enum>(2)</enum><text>Dual-sourcing.</text></paragraph>
<paragraph id="HA585CDD19C114F3DAD009A5A69FDB6B5"><enum>(3)</enum><text>Unbundling of contracts.</text></paragraph>
<paragraph id="H4B4125B883DF42A6AB55313AD9825A7C"><enum>(4)</enum><text>Funding of a second source for interchangeable, next-generation prototype systems or subsystems.</text></paragraph>
<paragraph id="HBCF67ED9C92F48C8921E496B8A4084B9"><enum>(5)</enum><text>Use of modular, open architectures to enable competition for upgrades.</text></paragraph>
<paragraph id="H921291DC38F8473AA8A9DA68A453BC58"><enum>(6)</enum><text>Use of build-to-print approaches to enable production through multiple sources.</text></paragraph>
<paragraph id="HD4DD61207260487C8AB41F6801236633"><enum>(7)</enum><text>Acquisition of complete technical data packages.</text></paragraph>
<paragraph id="HC8BD3BC5851346B38B8783B5F2B1CC86"><enum>(8)</enum><text>Periodic competitions for subsystem upgrades.</text></paragraph>
<paragraph id="HF903C1AFBAAE419EABD7EE9444CB51BE"><enum>(9)</enum><text>Licensing of additional suppliers.</text></paragraph>
<paragraph id="H79E9D846A004493BB3B36B35CC36F71F"><enum>(10)</enum><text>Periodic system or program reviews to address long-term competitive effects of program decisions.</text></paragraph></subsection>
<subsection id="H17F053314FBA40E6A522704F24E08BA5" display-inline="no-display-inline"><enum>(c)</enum><header>Consideration of competition throughout operation and sustainment of major defense acquisition programs</header><text display-inline="yes-display-inline">In carrying out this section, the Secretary of Defense shall ensure that, with respect to maintenance of a major defense acquisition program, consideration is given to capabilities within the Department of Defense to perform maintenance functions.</text></subsection></section>
<section id="HDBAA1831AC3640D789D85C0BD849056D"><enum>202.</enum><header>Additional requirements for certain major defense acquisition programs</header>
<subsection id="H1708AF0D739D4566A2825720AD8FDA01"><enum>(a)</enum><header>Additional requirements relating to milestone B approval</header><text display-inline="yes-display-inline">Section 2366b of title 10, United States Code, is amended—</text>
<paragraph id="HAB6E32502B9B49B392A6F2F4A8B63530"><enum>(1)</enum><text>in subsection (d)—</text>
<subparagraph id="HC41AC77DCB9C485D9BDF042930E3D139"><enum>(A)</enum><text>by inserting <quote>(1)</quote> before <quote>The milestone decision authority may</quote>; and</text></subparagraph>
<subparagraph id="HAB428817DB48479490B0BE6A8BE87DDE"><enum>(B)</enum><text>by striking the second sentence and inserting the following: </text>
<quoted-block style="OLC" id="HC9809E292EC34ACFB63896E3D390329E" display-inline="no-display-inline">
<paragraph id="H936A02CBF604445CBAE833D71E086285" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Whenever the milestone decision authority makes such a determination and authorizes such a waiver—</text>
<subparagraph id="HFB20FAA6A59A453191DBA4F9D280B483"><enum>(A)</enum><text>the waiver, the determination, and the reasons for the determination shall be submitted in writing to the congressional defense committees within 30 days after the waiver is authorized; and</text></subparagraph>
<subparagraph id="H268F52F2217A410A8280FD26592008D2"><enum>(B)</enum><text>the milestone decision authority shall review the program not less often than annually to determine the extent to which such program currently satisfies the certification components specified in paragraphs (1) and (2) of subsection (a) until such time as the milestone decision authority determines that the program satisfies all such certification components.</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="H55E8A05542D34D6EB7F387439D780FBF"><enum>(2)</enum><text>by redesignating subsections (e) and (f) as subsections (f) and (g), respectively, and inserting after subsection (d) the following new subsection (e):</text>
<quoted-block id="HA0606815BDB44E8B8DFE84DD5964CD5D" style="OLC">
<subsection id="H6038C53E211B4956B72570C7C122917C"><enum>(e)</enum><header>Designation of certification status in budget documentation</header><text>Any budget request, budget justification material, budget display, reprogramming request, Selected Acquisition Report, or other budget documentation or performance report submitted by the Secretary of Defense to the President regarding a major defense acquisition program receiving a waiver pursuant to subsection (d) shall prominently and clearly indicate that such program has not fully satisfied the certification requirements of this section until such time as the milestone decision authority makes the determination that such program has satisfied all certification components pursuant to subsection (d)(2)(B).</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph>
<paragraph id="HC52E03D771C54356887CAA4FDD34158B"><enum>(3)</enum><text>in subsection (a)—</text>
<subparagraph id="H1D608E73EBC9469183FDB0E1ECF0A253"><enum>(A)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end;</text></subparagraph>
<subparagraph id="H2ABD2B8C81F649F481F646010497CA26"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3);</text></subparagraph>
<subparagraph id="HE0E185FDC1ED4A6AB23EA90512B81404"><enum>(C)</enum><text>by inserting after paragraph (1) the following new paragraph (2):</text>
<quoted-block id="HC975E5053C15476C8CB8C8F5DE600C2B" style="OLC">
<paragraph id="HC9D149B1575F4983B671950E310249C4"><enum>(2)</enum><text>has received a preliminary design review 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 or that no preliminary design review is necessary for such program to demonstrate a high likelihood of accomplishing its intended mission; and</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="HEFA3DADA79254E49BF8F12484A8A0E5B"><enum>(D)</enum><text>in paragraph (3), as redesignated by subparagraph (B) of this paragraph—</text>
<clause id="H58393B96A5774566A6D4A998BB00BCEB"><enum>(i)</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></clause>
<clause id="H095CFEBC45904676A46527FCBB219C83"><enum>(ii)</enum><text>by striking subparagraph (E); and</text></clause>
<clause id="HFE1BE5B5B7F7482A93C6681BE64EF591"><enum>(iii)</enum><text>by redesignating subparagraph (F) as subparagraph (E).</text></clause></subparagraph></paragraph></subsection>
<subsection id="H098E92158EA84391BF2F27B9FB25E649"><enum>(b)</enum><header>Certification and review of programs entering development prior to enactment of section 2366b of title 10</header>
<paragraph id="H4D1EF55A9FAB4E44897B051C6BA4601E"><enum>(1)</enum><header>Determination</header>
<subparagraph id="H7CA1DA8AEAD44FA28D36E623048511AF" display-inline="yes-display-inline"><enum>(A)</enum><text>Except as provided in subparagraph (B), beginning not later than 270 days after the date of the enactment of this Act, for each major defense acquisition program that has not received a Milestone C approval, or Key Decision Point C approval in the case of a space program, the Milestone Decision Authority shall determine whether or not the program satisfies the certification components specified in paragraphs (1) and (2) of subsection (a) of section 2366b of title 10, United States Code.</text></subparagraph>
<subparagraph id="HCD2CE242765A446A9207CF8F44474FE6" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to a major defense acquisition program that has been reviewed pursuant to section 2366b of title 10, United States Code, prior to the date that is 270 days after the date of the enactment of this Act, or a major defense acquisition program that has not yet received Milestone B approval.</text></subparagraph></paragraph>
<paragraph id="H3FED3640857246B9AC29534EBFF4D354"><enum>(2)</enum><header>Annual review</header><text>The Milestone Decision Authority shall review any program determined pursuant to paragraph (1) not to satisfy the certification components of subsection (a) of section 2366b of title 10, United States Code, not less often than annually thereafter to determine the extent to which such program currently satisfies the certification components specified in paragraphs (1) and (2) of subsection (a) of such section until such time as the Milestone Decision Authority determines that the program satisfies all such certification components.</text></paragraph>
<paragraph id="H83BDA340FEB040B387762E54566DDEA4"><enum>(3)</enum><header>Designation of certification status in budget documentation</header><text>Any budget request, budget justification material, budget display, reprogramming request, Selected Acquisition Report, or other budget documentation or performance report submitted by the Secretary of Defense to the President regarding a major defense acquisition program which the Milestone Decision Authority determines under paragraph (1) does not satisfy the certification components specified in paragraphs (1) and (2) of subsection (a) of section 2366b of title 10, United States Code, shall prominently and clearly indicate that such program has not fully satisfied such certification components until such time as the Milestone Decision Authority makes the determination that such program has satisfied all certification components pursuant to paragraph (2).</text></paragraph></subsection>
<subsection id="H3B067B5EFF644B85A70E6F7BA7D3924E" display-inline="no-display-inline"><enum>(c)</enum><header>Reviews of programs restructured after experiencing critical cost growth</header><text>The official designated to perform oversight of performance assessment pursuant to section 145 of title 10, United States Code, as added by this Act, shall annually review each major defense acquisition program that has been considered pursuant to paragraph (2) of section 2433(e) of title 10, United States Code, and which has been certified as necessary to continue pursuant to such paragraph, to assess the success of the program in achieving adequate program performance after the completion of such consideration. The results of reviews performed pursuant to this subsection shall be included in the next annual report of such official.</text></subsection></section>
<section id="H05847AB40140406389DF7511FC2AB5B6" display-inline="no-display-inline"><enum>203.</enum><header>Requirement for certification of major systems prior to Milestone B</header>
<subsection id="H2AC2555E75D04F21AB22D54E319B0370"><enum>(a)</enum><header>Certification</header><text>Except as provided in subsection (b), beginning not later than 270 days after the date of the enactment of this Act, for each major defense acquisition program that has not received Milestone B approval, or Key Decision Point B approval in the case of a space program, the Milestone Decision Authority shall certify, after consultation with the Joint Requirements Oversight Council on matters relating to program requirements and military needs—</text>
<paragraph id="HB148ED16DF504E2FB9D9D60EE66809BE"><enum>(1)</enum><text>that the program fulfills an approved initial capabilities document;</text></paragraph>
<paragraph id="H527F98EF8BEC458ABB4C134A999AF09F"><enum>(2)</enum><text>that the program is being executed by an entity with a relevant core competency as identified by the Secretary of Defense under section 118b of title 10, United States Code;</text></paragraph>
<paragraph id="HAF876C74EDD549D49E29E19A94608D8B"><enum>(3)</enum><text>if the program duplicates a capability already provided by an existing program, the duplication provided by such program is necessary and appropriate;</text></paragraph>
<paragraph id="HFFC7BE8AC4EB43C69418AC8947BC852C"><enum>(4)</enum><text>that a cost estimate for such program has been submitted to the Milestone Decision Authority and that the concurrence of the official designated to perform oversight of cost estimation pursuant to section 145 of title 10, United States Code, has been obtained regarding the choice of a cost estimate; and</text></paragraph>
<paragraph id="H04A2A3B8B12C4AE7BA646A94C9297A89"><enum>(5)</enum><text>that a schedule identifying the time and major activities required to reach Milestone B approval, or Key Decision Point B approval in the case of a space program, has been submitted to the Milestone Decision Authority.</text></paragraph></subsection>
<subsection id="H90B058FEF208415FB2FF06D53725DC8A"><enum>(b)</enum><header>Exception</header><text>Subsection (a) shall not apply to a major defense acquisition program that has received a certification as required by section 2366a, title 10, United States Code.</text></subsection>
<subsection id="HA66A6B5CB76342D3A0CB1A2B1CE4B50B"><enum>(c)</enum><header>Reports</header>
<paragraph id="H9A00792D40994D98A05F203282109AEE"><enum>(1)</enum><header>Relating to cost growth or schedule delay of programs certified under subsection (a)</header><text display-inline="yes-display-inline">With respect to a major defense acquisition program certified by the Milestone Decision Authority under subsection (a), the Milestone Decision Authority shall submit to the congressional defense committees a report in accordance with this subsection if, prior to Milestone B approval—</text>
<subparagraph id="H4F3FCFD9B71C45AC8817446DCADC05F0"><enum>(A)</enum><text>the projected cost of the program exceeds the cost estimate for the program submitted to the Milestone Decision Authority in accordance with subsection (a)(4) by more than 25 percent; or</text></subparagraph>
<subparagraph id="H8E17EDA1DAF84B76AB1B0A75ECBE6267"><enum>(B)</enum><text>the schedule submitted to the Milestone Decision Authority in accordance with subsection (a)(5) is delayed by more than 25 percent.</text></subparagraph></paragraph>
<paragraph id="H0647E0B21FA24327A2C29A99AB0ABCE6"><enum>(2)</enum><header>Relating to cost growth of programs certified under section 2366a</header><text>With respect to a major defense acquisition program certified by the Milestone Decision Authority under section 2366a of title 10, United States Code, the Milestone Decision Authority shall submit to the congressional defense committees a report in accordance with this subsection if the program manager submits a notification to the Milestone Decision Authority pursuant to section 2366a(b).</text></paragraph>
<paragraph id="HF3D2142F63334F7296560DDA33AF310E"><enum>(3)</enum><header>Matters covered</header><text>Any report submitted pursuant to paragraph (1) or (2) shall—</text>
<subparagraph id="HE5E49908FF98480AA98ADD27F09087B6"><enum>(A)</enum><text>identify the root causes of the cost or schedule growth;</text></subparagraph>
<subparagraph id="HA37C59BD80444B349898C39245858C72"><enum>(B)</enum><text>identify appropriate acquisition performance measures for the remainder of the program; and</text></subparagraph>
<subparagraph id="H35C95248697D4A67AC588791872A2167"><enum>(C)</enum><text>include one of the following:</text>
<clause id="HDC4B822D764043A48488602A4E49B97A"><enum>(i)</enum><text>A written certification (with a supporting explanation) stating that—</text>
<subclause id="HBAF2FCF1AD9943079810D2C6278B5193"><enum>(I)</enum><text>such program is essential to national security;</text></subclause>
<subclause id="H0755EAE3DDA7442CB55454342FDA1F89"><enum>(II)</enum><text>there are no alternatives to such program that will provide acceptable military capability at less cost;</text></subclause>
<subclause id="H5957B3A28AED49E18640357CC8C2A9EA"><enum>(III)</enum><text>new estimates of the cost or schedule, as appropriate, are reasonable; and</text></subclause>
<subclause id="H601B21F400D84842B2B922FA1D77829C"><enum>(IV)</enum><text>the management structure for the program is adequate to manage and control program cost and schedule.</text></subclause></clause>
<clause id="H67EDA97B56A643C2914F6BC4C2C5F6A3"><enum>(ii)</enum><text>A plan for terminating the development of the program or withdrawal of Milestone A approval (or Key Decision Point A approval in the case of a space program) if the Milestone Decision Authority determines that such action is in the interest of national defense.</text></clause></subparagraph></paragraph>
<paragraph id="H1F5935361BA746288AD419E400146092"><enum>(4)</enum><header>Time of submission</header><text>A report required by this subsection shall be submitted—</text>
<subparagraph id="H7605920F26E44F13A280D1A843BAD493"><enum>(A)</enum><text>in the case of a report required by paragraph (1), not later than 30 days after the Milestone Decision Authority determines the cost growth or schedule delay described in that paragraph; and</text></subparagraph>
<subparagraph id="H528C2167A7B646D59B820C5F9EF427A9"><enum>(B)</enum><text>in the case of a report required by paragraph (2), not later than 30 days after the Milestone Decision Authority receives the notification from the program manager described in that paragraph. </text></subparagraph></paragraph></subsection>
<subsection id="HFB7D36ABBBE645FE8203A86FE43F7145"><enum>(d)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="HC479D53EC9BC40B0BB29912916A6A71C"><enum>(1)</enum><header>Major defense acquisition program</header><text>The term <quote>major defense acquisition program</quote> means the following:</text>
<subparagraph id="H5590DD731B1D4D29A83EC874E9C6E007"><enum>(A)</enum><text>A major defense acquisition program as that term is defined in section 2430 of title 10, United States Code.</text></subparagraph>
<subparagraph id="H657A1D2FCA814101A28AAF602447D969"><enum>(B)</enum><text>An acquisition program of the Department of Defense that the Secretary of Defense expects to become a major defense acquisition program (as defined in such section 2430) upon Milestone B approval, on the basis of the cost estimate submitted in accordance with subsection (a)(4) of this section or subsection (a)(4) of section 2366a of title 10, United States Code.</text></subparagraph></paragraph>
<paragraph id="H2F2C82852D5B4E9194CDF2EE6F0BA201"><enum>(2)</enum><header>Initial capabilities document</header><text>The term <quote>initial capabilities document</quote> has the meaning provided by section 2366a (c)(2) of such title.</text></paragraph>
<paragraph id="HCAF77E6E0BC74E838F971EE557BB6318"><enum>(3)</enum><header>Entity</header><text>The term <quote>entity</quote> has the meaning provided by section 2366a(c)(4) of such title.</text></paragraph>
<paragraph id="HC2E6A20040734E98AA55FC287E36D741"><enum>(4)</enum><header>Milestone B approval</header><text>The term <quote>Milestone B approval</quote> has the meaning provided by section 2366(e)(7) of such title.</text></paragraph></subsection></section>
<section id="HB50E887D3B30418FB998D70EC7E15904"><enum>204.</enum><header>Critical cost growth in major defense acquisition programs</header>
<subsection id="H22AB583DF32C4B73AEEB3BBD8A733607"><enum>(a)</enum><header>Authorized Actions in Event of Critical Cost Growth</header><text>Paragraph (2) of section 2433(e) of title 10, United States Code, is amended to read as follows:</text>
<quoted-block id="HFD4100E075224A839EB95C5B30414693" style="OLC">
<paragraph id="H816F92E7A7F6418E94516546E196A9A7" indent="up1"><enum>(2)</enum>
<subparagraph id="HC43BA6C7804646FE82845C992046E8EF" display-inline="yes-display-inline"><enum>(A)</enum><text>If the program acquisition unit cost or procurement unit cost of a major defense acquisition program or designated major subprogram (as determined by the Secretary under subsection (d)) increases by a percentage equal to or greater than the critical cost growth threshold for the program or subprogram, the Secretary of Defense, after consultation with the Joint Requirements Oversight Council regarding program requirements, shall—</text>
<clause id="H1348D7FE8A7043CAAE0A40B4D83DD52C" indent="up1"><enum>(i)</enum><text>determine the root cause or causes of the critical cost growth including the role, if any, of—</text>
<subclause id="HAD9A204E0D49406A93AB896186276D3C"><enum>(I)</enum><text>changes or growth in requirements;</text></subclause>
<subclause id="H18DCA52FAB06470B854213B5D07EA898"><enum>(II)</enum><text>unrealistic baseline estimates;</text></subclause>
<subclause id="H19BCA9B31CFC46CA9B14DBDD4811C1A9"><enum>(III)</enum><text>any design, engineering, manufacturing, or technology integration issues;</text></subclause>
<subclause id="H950086E7708B484D8F676F0F52563FA9"><enum>(IV)</enum><text>changes in procurement quantities;</text></subclause>
<subclause id="HA3A60106447F4052BD2CD7F32CC0FFEB"><enum>(V)</enum><text>inadequate program funding or funding instability;</text></subclause>
<subclause id="H6C9FCFBDC0B340B39A1DC60BC6744C45"><enum>(VI)</enum><text>poor performance by government or contractor personnel responsible for program management; or</text></subclause>
<subclause id="H162DC28C7BBB4EBC8C3EFA3C0E68B3FB"><enum>(VII)</enum><text>other causes as identified by the Secretary;</text></subclause></clause>
<clause id="HF1AA11B6769E4973AD2BBE66B824D919" indent="up1"><enum>(ii)</enum><text>subject to subparagraph (B), determine whether to terminate such program or to restructure such program after assessing—</text>
<subclause id="HFEA7BDD8E5C548228059D94F881BF32C"><enum>(I)</enum><text>the root causes of cost growth identified pursuant to subparagraph (A);</text></subclause>
<subclause id="H5AC2F9A330AA48E19D9332CF055C7E5B"><enum>(II)</enum><text>the validity and urgency of the joint military requirement;</text></subclause>
<subclause id="H113D54CC9D704F199C6CA7DFD4E9C673"><enum>(III)</enum><text>the viability of the acquisition strategy;</text></subclause>
<subclause id="H42B2BE86D64C4D178022C4B728D7AC65"><enum>(IV)</enum><text>the quality of program management;</text></subclause>
<subclause id="H365960EB5364462BBF77E30F0AEA3F06"><enum>(V)</enum><text>a broad range of potential material and non-material alternatives to such program; and</text></subclause>
<subclause id="H7382ABC7994741359AAB688824A70176"><enum>(VI)</enum><text display-inline="yes-display-inline">the need to reduce funding for other programs due to the cost growth on such program;</text></subclause></clause>
<clause id="H7B188B92C8C64D14BC5AA8784C7691D5" indent="up1"><enum>(iii)</enum><text>submit the determination made under clause (ii) 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; and</text></clause>
<clause id="H77F947D4A3C44F7CA15CCD71BF09E6E7" indent="up1"><enum>(iv)</enum><text>if a report under paragraph (1) has been previously submitted to Congress with respect to such program or subprogram for the current fiscal year but was based upon a different unit cost report from the program manager to the service acquisition executive designated by the Secretary concerned, submit a further report containing the information described in subsection (g), determined from the time of the previous report to the time of the current report.</text></clause></subparagraph>
<subparagraph id="HBC44435A9E704C38A38346E2A0848DDE" indent="up1"><enum>(B)</enum><text>A program may be restructured pursuant to a determination under subparagraph (A)(ii) only if—</text>
<clause id="HD00FAA141A6647C3A686C5AFFA27FD5A"><enum>(i)</enum><text>a written certification (with a supporting explanation) is submitted along with the determination stating that—</text>
<subclause id="H1AB3E1AA4A704D3BA8E0672F112374EE"><enum>(I)</enum><text>such program is essential to national security;</text></subclause>
<subclause id="H3B2BC6FB05F646FAABD724C740EAD81B"><enum>(II)</enum><text>there are no alternatives to such program which will provide acceptable military capability at less cost;</text></subclause>
<subclause id="HCD170FC14A024A2A8BED1E7EC37943FF"><enum>(III)</enum><text>new estimates of the program acquisition unit cost or procurement unit cost are reasonable; </text></subclause>
<subclause id="H665DF7A4D8334983A0FBC39DB2639BE0" display-inline="no-display-inline"><enum>(IV)</enum><text display-inline="yes-display-inline">the program is a higher priority than programs whose funding must be reduced to accommodate cost growth on such program; and</text></subclause>
<subclause id="H92B745D4C8704B8BAF90F60BF138BCF3"><enum>(V)</enum><text>the management structure for the program is adequate to manage and control program acquisition unit cost or procurement unit cost; and</text></subclause></clause>
<clause id="H1320E155D16F4813BEE35DA063606130"><enum>(ii)</enum><text>the most recent milestone decision is revisited and results in the approval of such restructured program.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HA3E078CF406048E989FCFFDC33A05CF9"><enum>(b)</enum><header>Total Expenditure for Procurement Resulting in Treatment as major defense acquisition program</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>
<subsection id="H57CEB0C34E29468283D70E7D39706377" display-inline="no-display-inline"><enum>(c)</enum><header>Requirement To include cost growth funding changes in report</header><text display-inline="yes-display-inline">When a program is restructured under paragraph (2) of section 2433(e) of title 10, United States Code, the next Selected Acquisition Report for such program submitted pursuant to section 2432 of such title occurring after the submission of the budget for the fiscal year following the fiscal year in which the program was restructured shall contain a description of all funding changes included in the budget for that fiscal year as a result of the cost growth on such program, including reductions made in the budgets of other programs to accommodate such cost growth.</text></subsection>
<subsection id="H10A63B4F6C504FACA1BAD69277835028"><enum>(d)</enum><header>Conforming amendments</header><text>Section 2433(e)(3) of such title is amended—</text>
<paragraph id="HDD08131C74344B689D86F773858D36A6"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>or (2)(B)</quote> and inserting <quote>or (2)(A)(iii)</quote>; and</text></paragraph>
<paragraph id="H9CBC9AADE85D4E0399E211D2383AA934"><enum>(2)</enum><text>in subparagraph (B)—</text>
<subparagraph id="H5912EDF4944E4CED9D3492C045B4E770"><enum>(A)</enum><text>by striking <quote>or (2)(B)</quote> and inserting <quote>or (2)(A)(iii)</quote>; and</text></subparagraph>
<subparagraph id="HE8145573A5E348339E5F334080ED804C"><enum>(B)</enum><text>by striking <quote>paragraph (2)(A)</quote> and inserting <quote>paragraph (2)(B)</quote>.</text></subparagraph></paragraph></subsection></section>
<section id="HFADFB2C2CBA54B04AB644C4DFF7FFAAA"><enum>205.</enum><header>Organizational conflicts of interest in the acquisition of major weapon systems</header>
<subsection id="HE59FFADB591F49F4B6AE0CFD5279479E"><enum>(a)</enum><header>Requirement for Panel To present recommendations</header><text>Not later than one year after the date of the enactment of this Act, the Panel on Contracting Integrity established pursuant to section 813 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2320) shall present recommendations to the Secretary of Defense on measures to eliminate or mitigate organizational conflicts of interest in the acquisition of major weapons systems.</text></subsection>
<subsection id="H6551195A1CF14DABB6D48071A119D065"><enum>(b)</enum><header>Revised Regulations Required</header><text>Not later than 180 days after receiving recommendations pursuant to subsection (a), the Secretary of Defense 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="H7B0206B816194627AFCA659FF751FB93" display-inline="no-display-inline"><enum>(c)</enum><header>Potential Organizational Conflicts of Interest</header><text display-inline="yes-display-inline">The organizational conflicts of interest considered during the preparation of the recommendations required pursuant to subsection (a) shall include conflicts that could arise as a result of any of the following:</text>
<paragraph id="HA8ACCC6664954F17A4170C55F7625143"><enum>(1)</enum><text display-inline="yes-display-inline">Lead system integrator contracts on major defense acquisition programs and contracts that follow lead system integrator contracts on such programs, particularly contracts for production.</text></paragraph>
<paragraph id="H094E310BBAFB4913ABA5AAC941F54339"><enum>(2)</enum><text>The ownership of business units performing systems engineering and technical assistance functions, professional services, or management support services in relation to major defense acquisition programs by contractors who simultaneously own business units competing to perform as either the prime contractor or the supplier of a major subsystem or component for such programs.</text></paragraph>
<paragraph id="H01604F3247C04B8183E7A37B6B4D6E6E"><enum>(3)</enum><text>The award of major subsystem contracts by a prime contractor for a major defense acquisition program to business units or other affiliates of the same parent corporate entity, and particularly the award of subcontracts for software integration or the development of a proprietary software system architecture.</text></paragraph>
<paragraph id="H9781BDB547D84F28BE4410E03AF608AA"><enum>(4)</enum><text>The performance by, or assistance of, contractors in technical evaluations on major defense acquisition programs.</text></paragraph></subsection>
<subsection id="H7B93C6F2978C442FAD9878BFF1CADEE7"><enum>(d)</enum><header>Extension of Panel on Contracting Integrity</header><text>Subsection (e) of section 813 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2321) is amended to read as follows:</text>
<quoted-block id="H86933C2EEEA742BB9AC9F16198E0AE88" style="OLC">
<subsection id="H8EC49E4CAE3C409FA03E989944F58F74"><enum>(e)</enum><header>Termination</header>
<paragraph id="HE265D6C599534C84B9C8AF05D86E443B" display-inline="yes-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">Subject to the restriction in paragraph (2), the panel shall continue to serve until the date that is 18 months after the date on which the Secretary of Defense notifies the congressional defense committees of an intention to terminate the panel based on a determination that the activities of the panel no longer justify its continuation and that concerns about contracting integrity have been fully mitigated.</text></paragraph>
<paragraph id="HFDE0A55EC4BA4E7E9D1A8A7036196692" indent="up1"><enum>(2)</enum><text>The panel shall continue to serve at least until December 31, 2011.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section id="HEFC2876C64DC418C93199EEC302F223E"><enum>206.</enum><header>Awards for Department of Defense personnel for excellence in the acquisition of products and services</header>
<subsection id="H647DBA25CF4B4D9680912EA8C00A1D8B"><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="H287591E42DAD4854BF7D354D1942E968"><enum>(b)</enum><header>Elements</header><text>The program required by subsection (a) shall include the following:</text>
<paragraph id="H32359894B18F450D96F90DD57C950722"><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="HAE267349478C420CA2AA2EE901B209C7"><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="H3B1DFA3AE9FE4BA2AC37F5D6661D6D9B"><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>
<section id="HFFB0C3211F6B442193A56CD8ED157AF2" display-inline="no-display-inline" section-type="subsequent-section"><enum>207.</enum><header>Consideration of trade-offs among cost, schedule, and performance in the acquisition of major weapon systems</header><text display-inline="yes-display-inline"></text>
<subsection id="H03D5E016A78A4C4492905B97EB1DD7C4"><enum>(a)</enum><header>Review of mechanisms for considering trade-offs</header><text>The Comptroller General shall review the use by the Department of Defense of certain mechanisms for considering trade-offs among cost, schedule, and performance in the acquisition of major weapon systems.</text></subsection>
<subsection id="H95A4B231A71545C7880FE462C689CBE1"><enum>(b)</enum><header>Mechanisms included</header><text>The mechanisms reviewed pursuant to subsection (a) shall include—</text>
<paragraph id="H44D4C1A8DAA0432C85AF166CB8A0085A"><enum>(1)</enum><text>the Tri-Chair Committee, as defined in section 817 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 225);</text></paragraph>
<paragraph id="H58D4283DBBEF4F9EB5AEE9B403F4D845"><enum>(2)</enum><text>Configuration Steering Boards as established pursuant to section 814 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110–417; 122 Stat. 4528); </text></paragraph>
<paragraph id="H7DC7655F68284A379479700839BCC556" display-inline="no-display-inline"><enum>(3)</enum><text display-inline="yes-display-inline">any mechanism that is used or that may potentially be used by the Office of the Under Secretary of Defense (Comptroller) for considering trade-offs among cost, schedule, and performance in the acquisition of major weapon systems; and</text></paragraph>
<paragraph id="H8FB317B41BCE4D8095C7F75E0C39A056"><enum>(4)</enum><text>any other mechanisms identified as allowing for the consideration of trade-offs in the report on investment strategies for major defense acquisition programs required by section 817 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181).</text></paragraph></subsection>
<subsection id="H1438A1295C4349B1901A28AF8A226435"><enum>(c)</enum><header>Assessment of mechanisms</header><text>The review shall describe and evaluate the effectiveness of the mechanisms identified in subsection (b).</text></subsection>
<subsection id="HB779103E27324A1EBF92324E3194CFF8"><enum>(d)</enum><header>Report</header><text>Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to the congressional defense committees a report on the review and assessment performed pursuant to this section. The report shall include such recommendations as the Comptroller General considers appropriate on the matters reviewed, including recommendations to improve the effectiveness of the mechanisms included in the report.</text></subsection></section>
May 12, 2009
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed