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. Definitions.
Title I—Acquisition Organization
Sec. 101. Cost assessment and program evaluation.
Sec. 102. Directors of Developmental Test and Evaluation and
Systems Engineering.
Sec. 103. Performance assessments and root cause analyses for
major defense acquisition programs.
Sec. 104. Assessment of technological maturity of critical
technologies of major defense acquisition programs by the Director of Defense
Research and Engineering.
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 objectives in Department of Defense acquisition
programs.
Sec. 202. Acquisition strategies to ensure competition
throughout the lifecycle of major defense acquisition programs.
Sec. 203. Prototyping requirements for major defense
acquisition programs.
Sec. 204. Actions to identify and address systemic problems in
major defense acquisition programs prior to Milestone B approval.
Sec. 205. Additional requirements for certain major defense
acquisition programs.
Sec. 206. Critical cost growth in major defense acquisition
programs.
Sec. 207. Organizational conflicts of interest in major defense
acquisition programs.
Title III—Additional Acquisition Provisions
Sec. 301. Awards for Department of Defense personnel for
excellence in the acquisition of products and services.
Sec. 302. Earned value management.
Sec. 303. Expansion of national security objectives of the
national technology and industrial base.
Sec. 304. Comptroller General of the United States reports on
costs and financial information regarding major defense acquisition
programs.
2.In this Act:
(1)The term congressional defense
committees has the meaning given that term in section 101(a)(16) of
title 10, United States Code.
(2)The term major defense acquisition
program has the meaning given that term in section 2430 of title 10,
United States Code.
(3)The term
major weapon system
has the meaning given that term in section
2379(d) of title 10, United States Code.
<enum>I</enum><header>Acquisition
Organization</header>
<section id="HEB4D897A2A65469FB69EF6D5FD54DA3E"><enum>101.</enum><header>Cost assessment
and program evaluation</header>
<subsection id="H962470E11F8148BD8FF1179B11B11C17"><enum>(a)</enum><header>Director of Cost
Assessment and Program Evaluation</header>
<paragraph id="H9A09C21990C344FE8ADC9616BC60ED54"><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="H43E8EDA6708B4631847E648B8DED4D4D" style="USC">
<section id="H641FD03AF54A4AD9807A951E0B740CC2"><enum>139c.</enum><header>Director of
Cost Assessment and Program Evaluation</header>
<subsection id="HECAFA2A1922C43B88E62EE2AC721A4AC"><enum>(a)</enum><header>Appointment</header><text>There
is a Director of Cost Assessment and Program Evaluation in the Department of
Defense, appointed by the President, by and with the advice and consent of the
Senate.</text>
</subsection><subsection id="H273D31C0A52D40E9A634D504756AAF45"><enum>(b)</enum><header>Independent
advice to Secretary of Defense</header><paragraph commented="no" display-inline="yes-display-inline" id="HE91A98BB7CCD4DFD89A450E07A7CBC98"><enum>(1)</enum><text>The Director of Cost
Assessment and Program Evaluation is the principal advisor to the Secretary of
Defense and other senior officials of the Department of Defense, and shall
provide independent analysis and advice to such officials, on the following
matters:</text>
<subparagraph id="H007A16FDE5A241598477A57CE2093DC1" indent="up1"><enum>(A)</enum><text>Matters assigned to the Director
pursuant to this section and section 2334 of this title.</text>
</subparagraph><subparagraph id="H238887DE13674F14A996782C0661DEA0" indent="up1"><enum>(B)</enum><text>Matters assigned to the Director by
the Secretary pursuant to section 113 of this title.</text>
</subparagraph></paragraph><paragraph id="HE4042039D42E4145B75C39D7D817E5E6" indent="up1"><enum>(2)</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></subsection><subsection commented="no" display-inline="no-display-inline" id="HD3DC4C6FEDDE4766B030C03C93C866D1"><enum>(c)</enum><header>Deputy
Directors</header><text>There are two Deputy Directors within the Office of the
Director of Cost Assessment and Program Evaluation, as follows:</text>
<paragraph id="H28E527F080644A389DCCEDB27E279E5C"><enum>(1)</enum><text>The Deputy
Director for Cost Assessment.</text>
</paragraph><paragraph id="HC566DFC2AF804E2E98E74F35FE683E65"><enum>(2)</enum><text>The Deputy
Director for Program Evaluation.</text>
</paragraph></subsection><subsection id="H0D1E4D2135A34DC694D713D1AC7B6164"><enum>(d)</enum><header>Responsibilities</header><text>The
Director of Cost Assessment and Program Evaluation shall serve as the principal
official within the senior management of the Department of Defense for the
following:</text>
<paragraph id="H80F57DFAC2614CDB99B26E5F77CE14C4"><enum>(1)</enum><text>Cost estimation
and cost analysis for acquisition programs of the Department of Defense, and
carrying out the duties assigned pursuant to section 2334 of this title.</text>
</paragraph><paragraph id="HF45DA5F62D0245D2BC14BE3947D1C3F8"><enum>(2)</enum><text>Analysis and
advice on matters relating to the planning and programming phases of the
Planning, Programming, Budgeting and Execution system, and the preparation of
materials and guidance for such system, as directed by the Secretary of
Defense, working in coordination with the Under Secretary of Defense
(Comptroller).</text>
</paragraph><paragraph id="HFB1090C365BA4031A41BF73B6A02C3EB"><enum>(3)</enum><text>Analysis and
advice for resource discussions relating to requirements under consideration in
the Joint Requirements Oversight Council pursuant to section 181 of this
title.</text>
</paragraph><paragraph id="H8352C4FA71614488A4479C80A21C970B"><enum>(4)</enum><text>Formulation of
study guidance for analyses of alternatives for major defense acquisition
programs and performance of such analyses, as directed by the Secretary of
Defense</text>
</paragraph><paragraph id="HDA97347B854849B2ADBC84E178F6EB43"><enum>(5)</enum><text>Review, analysis,
and evaluation of programs for executing approved strategies and policies,
ensuring that information on programs is presented accurately and completely,
and assessing the effect of spending by the Department of Defense on the United
States economy.</text>
</paragraph><paragraph id="H020A691774FA409DB79CC9154908E8F5"><enum>(6)</enum><text>Assessments of
special access and compartmented intelligence programs, in coordination with
the Under Secretary of Defense for Acquisition, Technology, and Logistics and
the Under Secretary of Defense for Intelligence and in accordance with
applicable policies.</text>
</paragraph><paragraph id="H740FF70875D64A9390D6DB7C76D8F456"><enum>(7)</enum><text>Assessments of
alternative plans, programs, and policies with respect to the acquisition
programs of the Department of Defense.</text>
</paragraph><paragraph id="H0BE0997A0397475BBADA9E4764047F11"><enum>(8)</enum><text>Leading the
development of improved analytical skills and competencies within the cost
assessment and program evaluation workforce of the Department of Defense and
improved tools, data, and methods to promote performance, economy, and
efficiency in analyzing national security planning and the allocation of
defense
resources.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB2C15FD69AEC412F897A2D581191EBE8"><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="H7F3972C652CB430F8BBE79FEF1FC17CF" style="USC">
<toc>
<toc-entry idref="H641FD03AF54A4AD9807A951E0B740CC2" level="section">139c. Director of Cost Assessment and Program
Evaluation.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H71E5FF09E6584D70A6F5CD9234DA0103"><enum>(3)</enum><header>Executive
schedule Level IV</header><text>Section 5315 of title 5, United States Code, is
amended by inserting after the item relating to the Director of Operational
Test and Evaluation, Department of Defense the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H1DC2EB085ECB454CB078F5DE1CF26AA2" style="OLC">
<paragraph id="HBDA1B981B4ED48E8BC7AFF1EBD7F8C44"><enum></enum><text>Director of
Cost Assessment and Program Evaluation, Department of
Defense.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD79050DCAEFD4F318134ACA477790B83"><enum>(b)</enum><header>Independent cost
estimation and cost analysis</header>
<paragraph id="HCBE8500A288E42F3B51ABDAAE838DA33"><enum>(1)</enum><header>In
general</header><text>Chapter 137 of title 10, United States Code, is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H53D4589AA0B0407DBB3C5BC7167642E0" style="USC">
<section id="H981E8F19FC7748CC8CA79303D630EE18"><enum>2334.</enum><header>Independent
cost estimation and cost analysis</header>
<subsection id="H15FF7F31516B42639F78F39E7792A7F5"><enum>(a)</enum><header>In
general</header><text>The Director of Cost Assessment and Program Evaluation
shall ensure that the cost estimation and cost analysis processes of the
Department of Defense provide accurate information and realistic estimates of
cost for the acquisition programs of the Department of Defense. In carrying out
that responsibility, the Director shall—</text>
<paragraph id="HD17489979BD540F5A921F14616C1018D"><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="H656AE152CE084398A36A1D8DA2AC3DE0"><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), the Secretaries of the military departments, and the heads of
the Defense Agencies 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="H6217BFCA9FB244B78FC80FB7FD3EF537"><enum>(3)</enum><text>issue guidance
relating to the proper selection of confidence levels in cost estimates
generally, and specifically, for the proper selection of confidence levels in
cost estimates for major defense acquisition programs and major automated
information system programs;</text>
</paragraph><paragraph id="H9778CFDF9C564E2198B810FCCED5C9B5"><enum>(4)</enum><text>issue guidance
relating to full consideration of life-cycle management and sustainability
costs in major defense acquisition programs and major automated information
system programs;</text>
</paragraph><paragraph id="H7263A7046074471BB4DDCB727B5496C2"><enum>(5)</enum><text>review all cost
estimates and cost analyses conducted in connection with major defense
acquisition programs and major automated information system programs;</text>
</paragraph><paragraph id="H067243CE6EED4207BA5DBDA8BA5E131C"><enum>(6)</enum><text>conduct
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="H1013261140F64A0C8770722D6D7ED06B"><enum>(A)</enum><text>in advance
of—</text>
<clause id="H6C8B84002AD74345899C5C5AC2427370"><enum>(i)</enum><text>any certification
under section 2366a or 2366b of this title;</text>
</clause><clause id="HC101E0766B244DEE919A2D6FDDE920BB"><enum>(ii)</enum><text>any decision to
enter into low-rate initial production or full-rate production;</text>
</clause><clause id="HEEC538C9CB94405F9EBBABCD6BC565EA"><enum>(iii)</enum><text>any
certification under section 2433a of this title; and</text>
</clause><clause id="H19B4FE3EA1014CC49802BD665D783443"><enum>(iv)</enum><text>any report under
section 2445c(f) of this title; and</text>
</clause></subparagraph><subparagraph id="H077782C5D23A430BA0C489DACE2C9709"><enum>(B)</enum><text>at any other time
considered appropriate by the Director or upon the request of the Under
Secretary of Defense for Acquisition, Technology, and Logistics; and</text>
</subparagraph></paragraph><paragraph id="H3DE0DA5AA2784A30B038BBA06D64C8E2"><enum>(7)</enum><text>periodically
assess and update the cost indexes used by the Department to ensure that such
indexes have a sound basis and meet the Department’s needs for realistic cost
estimation.</text>
</paragraph></subsection><subsection id="H059C262637564EF98C20DAD4D0485ECF"><enum>(b)</enum><header>Review of cost
estimates, cost analyses, and records of the military departments and Defense
Agencies</header><text>The Secretary of Defense shall ensure that the Director
of Cost Assessment and Program Evaluation—</text>
<paragraph id="H83A3298B8FDF46AD90183DDF0AC279F0"><enum>(1)</enum><text>promptly receives
the results of all cost estimates and cost analyses conducted by the military
departments and Defense Agencies, and all studies conducted by the military
departments and Defense Agencies in connection with such cost estimates and
cost analyses, for major defense acquisition programs and major automated
information system programs of the military departments and Defense Agencies;
and</text>
</paragraph><paragraph id="HA2D4C08186EF49A4AD70D6E00D424C94"><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 Defense Agency and including classified
and proprietary information) that the Director considers necessary to review in
order to carry out any duties under this section.</text>
</paragraph></subsection><subsection id="H6B390CC3A9BF411882A29B20D7ED3902"><enum>(c)</enum><header>Participation,
concurrence, and approval in cost estimation</header><text>The Director of Cost
Assessment and Program Evaluation may—</text>
<paragraph id="H6CF11C5EDC9F47DD80F9F0556C066BCD"><enum>(1)</enum><text>participate in the
discussion of any discrepancies between an independent cost estimate and the
cost estimate of a military department or Defense Agency for a major defense
acquisition program or major automated information system program of the
Department of Defense;</text>
</paragraph><paragraph id="HD07918FFCF5C47668EAA3C40FBAD8C88"><enum>(2)</enum><text>comment on
deficiencies in the methodology or execution of any cost estimate or cost
analysis developed by a military department or Defense Agency for a major
defense acquisition program or major automated information system
program;</text>
</paragraph><paragraph id="H8B8F3A8512F2478D9FA3656655031C3A"><enum>(3)</enum><text>concur in the
choice of a cost estimate within the baseline description or any other cost
estimate (including the confidence level for any such cost estimate) for use at
any event specified in subsection (a)(6); and</text>
</paragraph><paragraph id="H85AFA30E88ED4282AC7B7EB5427B14F8"><enum>(4)</enum><text>participate in the
consideration of any decision to request authorization of a multiyear
procurement contract for a major defense acquisition program.</text>
</paragraph></subsection><subsection id="H5334082D36B84EFC8DDB988A4D5F130F"><enum>(d)</enum><header>Disclosure of
confidence levels for baseline estimates of major defense acquisition
programs</header><text>The Director of Cost Assessment and Program Evaluation,
and the Secretary of the military department concerned or the head of the
Defense Agency concerned (as applicable), shall each—</text>
<paragraph id="H25A7DA34CA464FE881ADECD52C4DCD0C"><enum>(1)</enum><text display-inline="yes-display-inline">disclose in accordance with paragraph (2)
the confidence level used in establishing a cost estimate for a major defense
acquisition program or major automated information system 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="HA6D1EB959EA5443187846CECC1C4A3BC"><enum>(2)</enum><text>include the
disclosure required by paragraph (1)—</text>
<subparagraph id="H87DC9A5727F541AE8E406EDC7398337C"><enum>(A)</enum><text>in any decision
documentation approving a cost estimate within the baseline description or any
other cost estimate for use at any event specified in subsection (a)(6);
and</text>
</subparagraph><subparagraph id="HC8CA2EFB76FE40C39853AE782452B194"><enum>(B)</enum><text>in the next
Selected Acquisition Report pursuant to section 2432 of this title in the case
of a major defense acquisition program, or the next quarterly report pursuant
to section 2445c of this title in the case of a major automated information
system program.</text>
</subparagraph></paragraph></subsection><subsection id="HF41ADD22C45E4AA79BC3A1CAAF577B2D"><enum>(e)</enum><header>Annual report on
cost assessment activities</header><paragraph commented="no" display-inline="yes-display-inline" id="H6DEE11E6545B40CAA6C647DB85B5AA47"><enum>(1)</enum><text>The Director of Cost
Assessment and Program Evaluation 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 cost estimates and analyses. Each report shall
include, for the year covered by such report, an assessment of—</text>
<subparagraph id="HD4A9E5B898454C0F8027262E7D9DB0BA" indent="up1"><enum>(A)</enum><text>the extent to which each of the
military departments and Defense Agencies have complied with policies,
procedures, and guidance issued by the Director with regard to the preparation
of cost estimates for major defense acquisition programs and major automated
information systems;</text>
</subparagraph><subparagraph id="H73491ADE5C814EA0AB0CFC490D9FB26D" indent="up1"><enum>(B)</enum><text>the overall quality of cost estimates
prepared by each of the military departments and Defense Agencies for major
defense acquisition programs and major automated information system programs;
and</text>
</subparagraph><subparagraph id="H3DF8006D4C4E401D8356BECE7C0F9CE6" indent="up1"><enum>(C)</enum><text>any consistent differences in
methodology or approach among the cost estimates prepared by the military
departments, the Defense Agencies, and the Director.</text>
</subparagraph></paragraph><paragraph id="HF3480286192C40E19A8698525AE4C55E" 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 the congressional defense committees
not later than 10 days after the transmittal to Congress of the budget of the
President for the next fiscal year (as submitted pursuant to section 1105 of
title 31).</text>
</paragraph><paragraph id="H4B697EF3617F4A19A32988D24958BCF1" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H5AC724627E294E109BB43438F1291480"><enum>(A)</enum><text>Each report submitted to
the congressional defense committees under this subsection shall be submitted
in unclassified form, but may include a classified annex.</text>
</subparagraph><subparagraph id="HCB29593B01114A70AC4B57CF0AA11016" indent="up1"><enum>(B)</enum><text>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>
</subparagraph><subparagraph id="H008ADF06B9F345319A5DDD9B8F969ACE" indent="up1"><enum>(C)</enum><text>The unclassified version of each
report submitted to the congressional defense committees under this subsection
shall be posted on an Internet website of the Department of Defense that is
available to the public.</text>
</subparagraph></paragraph><paragraph id="HAE50AB81D6394184BFD6A2690D06DC35" indent="up1"><enum>(4)</enum><text>The Secretary of Defense may comment
on any report of the Director to the congressional defense committees under
this subsection.</text>
</paragraph></subsection><subsection id="H2609426BF47F4292AEA41CE8C8519562"><enum>(f)</enum><header>Staff</header><text>The
Secretary of Defense shall ensure that the Director of Cost Assessment and
Program Evaluation 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="HEEEC5DAE62E64839A15AB99EE080089A"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 137
of such title is amended by adding at the end the following new item:</text>
<quoted-block id="H5063857EE7474B39A0DEBC9858AAF583" style="USC">
<toc>
<toc-entry idref="H981E8F19FC7748CC8CA79303D630EE18" level="section">2334. Independent cost estimation and cost
analysis.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBD75BF3B68944BAC8E7022697AA5DFEA"><enum>(c)</enum><header>Transfer of
personnel and functions</header>
<paragraph id="H65685CA4C10A48BCB05D54D211202A0D"><enum>(1)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">The functions of
the Office of Program Analysis and Evaluation of the Department of Defense,
including the functions of the Cost Analysis Improvement Group, are hereby
transferred to the Office of the Director of Cost Assessment and Program
Evaluation.</text>
</paragraph><paragraph id="HBE46C7BED3D042178719FA1EC1B7EC84"><enum>(2)</enum><header>Transfer of
personnel to Deputy Director for Independent Cost Assessment</header><text>The
personnel of the Cost Analysis Improvement Group are hereby transferred to the
Deputy Director for Cost Assessment in the Office of the Director of Cost
Assessment and Program Evaluation.</text>
</paragraph><paragraph id="H760CED84318246D0AC7C94D54B05FFA6"><enum>(3)</enum><header>Transfer of
personnel to Deputy Director for Program Analysis and
Evaluation</header><text>The personnel (other than the personnel transferred
under paragraph (2)) of the Office of Program Analysis and Evaluation are
hereby transferred to the Deputy Director for Program Evaluation in the Office
of the Director of Cost Assessment and Program Evaluation.</text>
</paragraph></subsection><subsection id="H559E42A17DFD40DFB9212861E4946A10"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="HBF727A63CF934D6F848AD73B41A6F080"><enum>(1)</enum><text>Section 181(d) of
title 10, United States Code, is amended by striking <quote>Director of the
Office of Program Analysis and Evaluation</quote> and inserting <quote>Director
of Cost Assessment and Program Evaluation</quote>.</text>
</paragraph><paragraph id="H71C1B20B24C44B5585F4142F0741491E"><enum>(2)</enum><text>Section
2306b(i)(1)(B) of such title is amended by striking <quote>Cost Analysis
Improvement Group of the Department of Defense</quote> and inserting
<quote>Director of Cost Assessment and Program Analysis</quote>.</text>
</paragraph><paragraph id="H46970A9B1D604B0884380B45193F0D92"><enum>(3)</enum><text>Section
2366a(a)(4) of such title is amended by inserting <quote>, with the concurrence
of the Director of Cost Assessment and Program Evaluation,</quote> after
<quote>has been submitted</quote>.</text>
</paragraph><paragraph id="H404FAFF31FAB449CA2E1D1190B9E132F"><enum>(4)</enum><text>Section
2366b(a)(1)(C) of such title is amended by inserting <quote>, with the
concurrence of the Director of Cost Assessment and Program Evaluation,</quote>
after <quote>have been developed to execute</quote>.</text>
</paragraph><paragraph id="H17411B2595D24B848965AE1A3313E99B"><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="H7A0F1535CADF40528DA127260362F8AD" style="OLC">
<subparagraph id="HF2604FADBA3B493286E50DF832E0EDF1" indent="up2"><enum>(A)</enum><text>be prepared or approved by the
Director of Cost Assessment and Program Evaluation;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8B5AC7407C6D4032A0098B549B73D08D"><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, with the concurrence of the Director
of Cost Assessment and Program Evaluation, to be reasonable</quote>.</text>
</paragraph></subsection><subsection id="HA67A091A27E4405C8AEF20D65CC59F19"><enum>(e)</enum><header>Report on
monitoring of operating and support costs for major defense acquisition
programs</header>
<paragraph id="HB19C0B75A38A48B3893F67D684C698D6"><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 Cost Assessment and Program
Evaluation under section 139c 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,
including an assessment by the Director of the feasibility and advisability of
establishing baselines for operating and support costs under section 2435 of
title 10, United States Code.</text>
</paragraph><paragraph id="HCF2472F2A3184164BB69D6E4E6BDF1D4"><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></section><section id="H8A1BF577D633424B8DB11845A0642265"><enum>102.</enum><header>Directors of
Developmental Test and Evaluation and Systems Engineering</header>
<subsection id="H7C61438830D14716ACDCA1C09F385BBB"><enum>(a)</enum><header>In
general</header>
<paragraph id="H890500756A544C41900D7147D158E2BD"><enum>(1)</enum><header>Establishment of
positions</header><text>Chapter 4 of title 10, United States Code, as amended
by section 101(a) of this Act, is further amended by inserting after section
139c the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H94A0D16085B345D5952B5519F3383E0D" style="USC">
<section id="H61207DE92145445CBF4D63F756EB69AB"><enum>139d.</enum><header>Director of
Developmental Test and Evaluation; Director of Systems Engineering: joint
guidance</header>
<subsection id="H6D1104AB06E24286B86CB9D538FCEFFE"><enum>(a)</enum><header>Director of
Developmental Test and Evaluation</header>
<paragraph id="HAF498357D4A548EA80D3F24961642231"><enum>(1)</enum><header>Appointment</header><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 test and
evaluation.</text>
</paragraph><paragraph id="H9BDD8C3B6D164E319DDFAD7CD4BCF936"><enum>(2)</enum><header>Principal
advisor for developmental test and evaluation</header><text>The Director 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="H4607A6619AA5451A84D41EECD262443A"><enum>(3)</enum><header>Supervision</header><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><paragraph id="H6E9B43E927C3493EBF271C7FA0E0C62F"><enum>(4)</enum><header>Coordination
with Director of Systems Engineering</header><text>The Director of
Developmental Test and Evaluation shall closely coordinate with the Director of
Systems Engineering to ensure that the developmental test and evaluation
activities of the Department of Defense are fully integrated into and
consistent with the systems engineering and development planning processes of
the Department.</text>
</paragraph><paragraph id="H2CA1CB8A78A5459E919DCB8433559EC9"><enum>(5)</enum><header>Duties</header><text>The
Director shall—</text>
<subparagraph id="H444453D961A04644B67AB3924FEF28A8"><enum>(A)</enum><text>develop policies
and guidance for—</text>
<clause id="H2AD2580D275C41B8A6BA9F34266B48DC"><enum>(i)</enum><text>the conduct of
developmental test and evaluation in the Department of Defense (including
integration and developmental testing of software);</text>
</clause><clause id="H24390C01E50446628E0CAF240957D75D"><enum>(ii)</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>
</clause><clause id="HD10A56E20283452E8373514E0F3C0867"><enum>(iii)</enum><text>the conduct of
developmental test and evaluation conducted jointly by more than one military
department or Defense Agency;</text>
</clause></subparagraph><subparagraph id="H7F239869CCDC44A99A84A1B68F7594AC"><enum>(B)</enum><text>review and approve
the developmental test and evaluation plan within the test and evaluation
master plan for each major defense acquisition program of the Department of
Defense;</text>
</subparagraph><subparagraph id="H905B7DD40EB641A886ECAA0AC48554AA"><enum>(C)</enum><text>monitor and review
the developmental test and evaluation activities of the major defense
acquisition programs;</text>
</subparagraph><subparagraph id="H357B564C1BD54C65A3F257DBC4C43141"><enum>(D)</enum><text>provide advocacy,
oversight, and guidance to elements of the acquisition workforce responsible
for developmental test and evaluation;</text>
</subparagraph><subparagraph id="HCCFAFFE489FF41EAAF36748989EBE719"><enum>(E)</enum><text>periodically
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 provide input
regarding needed changes or improvements for the test and evaluation strategic
plan developed in accordance with section 196(d) of this title; and</text>
</subparagraph><subparagraph id="H2C823A5035A34F29B063ECE3FBBC2916"><enum>(F)</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>
</subparagraph></paragraph><paragraph id="HEFEAF851850E4BA191FB6E49B8C7FFCD"><enum>(6)</enum><header>Access to
records</header><text>The Secretary of Defense shall ensure that the Director
has access to all records and data of the Department of Defense (including the
records and data of each military department and including classified and
propriety information, as appropriate) that the Director considers necessary in
order to carry out the Director's duties under this subsection.</text>
</paragraph><paragraph id="H57D0841C6CB843BE9F24303F0E56CEC9"><enum>(7)</enum><header>Concurrent
service as Director of Department of Defense Test Resources Management
Center</header><text>The individual serving as the Director of Developmental
Test and Evaluation may also serve concurrently as the Director of the
Department of Defense Test Resource Management Center under section 196 of this
title.</text>
</paragraph></subsection><subsection id="H3F8748E121E14FB58C356FF6CAC96F12"><enum>(b)</enum><header>Director of
Systems Engineering</header>
<paragraph id="HCC655A01D03E4CD3B8B4C0B9CC4797F0"><enum>(1)</enum><header>Appointment</header><text>There
is a Director of Systems Engineering, who shall be appointed by the Secretary
of Defense from among individuals with an expertise in systems engineering and
development planning.</text>
</paragraph><paragraph id="H7F2EB191D24340F79378A4826ED078DD"><enum>(2)</enum><header>Principal
advisor for systems engineering and development planning</header><text>The
Director shall be the principal advisor to the Secretary of Defense and the
Under Secretary of Defense for Acquisition, Technology, and Logistics on
systems engineering and development planning in the Department of
Defense.</text>
</paragraph><paragraph id="HCAFB51BA26C0487E89DC4C2CD7D48623"><enum>(3)</enum><header>Supervision</header><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><paragraph id="H6EC0CE8E443240CEBE59D44BA6CC3FA9"><enum>(4)</enum><header>Coordination
with Director of Developmental Test and Evaluation</header><text>The Director
of Systems Engineering shall closely coordinate with the Director of
Developmental Test and Evaluation to ensure that the developmental test and
evaluation activities of the Department of Defense are fully integrated into
and consistent with the systems engineering and development planning processes
of the Department.</text>
</paragraph><paragraph id="HF946A5487C7E42A2B1996B58BD3EA3EF"><enum>(5)</enum><header>Duties</header><text>The
Director shall—</text>
<subparagraph id="HEC9C3000E54A43BBA7AD276ADD3E1732"><enum>(A)</enum><text>develop policies
and guidance for—</text>
<clause id="H8B94C81B4E1C424CA2923AE23BA2DE85"><enum>(i)</enum><text>the use of systems
engineering principles and best practices, generally;</text>
</clause><clause id="H180C10C7FB8D4BC78D40127B6220F1BC"><enum>(ii)</enum><text>the use of
systems engineering approaches to enhance reliability, availability, and
maintainability on major defense acquisition programs;</text>
</clause><clause id="HC9A37AA4277C4B32A94CB64686D16722"><enum>(iii)</enum><text>the development
of systems engineering master plans for major defense acquisition programs
including systems engineering considerations in support of lifecycle management
and sustainability; and</text>
</clause><clause id="H2EAED3F3E42E4A9F98A6976FEC14E455"><enum>(iv)</enum><text>the inclusion of
provisions relating to systems engineering and reliability growth in requests
for proposals;</text>
</clause></subparagraph><subparagraph id="HF8221818F1E245BB83920224D791507A"><enum>(B)</enum><text>review and approve
the systems engineering master plan for each major defense acquisition
program;</text>
</subparagraph><subparagraph id="H4C205CB385DA44628A4D84C58403EF15"><enum>(C)</enum><text>monitor and review
the systems engineering and development planning activities of the major
defense acquisition programs;</text>
</subparagraph><subparagraph id="HCDCC7A03A03343C99310CCB606D660CF"><enum>(D)</enum><text>provide advocacy,
oversight, and guidance to elements of the acquisition workforce responsible
for systems engineering, development planning, and lifecycle management and
sustainability functions;</text>
</subparagraph><subparagraph id="HD46C4F16A52146AAB10F357DFB645543"><enum>(E)</enum><text>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 this title, including specific
input relating to each capabilities development document;</text>
</subparagraph><subparagraph id="H4625EC46695C4BA8B58E29BFEEA9A901"><enum>(F)</enum><text>periodically
review the organizations and capabilities of the military departments with
respect to systems engineering, development planning, and lifecycle management
and sustainability, and identify needed changes or improvements to such
organizations and capabilities; and</text>
</subparagraph><subparagraph id="H5ED31E78162F45DA8EA752424BEE3BDE"><enum>(G)</enum><text>perform such other
activities relating to the systems engineering and development planning
activities of the Department of Defense as the Under Secretary of Defense for
Acquisition, Technology, and Logistics may prescribe.</text>
</subparagraph></paragraph><paragraph id="HDB92255DAC024CEDA62B947A8C676D6D"><enum>(6)</enum><header>Access to
records</header><text>The Director 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 Director considers necessary to review in order to carry out the
Director's duties under this subsection.</text>
</paragraph></subsection><subsection id="H9FFD77D4CD954570B3BF64366BBC0E91"><enum>(c)</enum><header>Joint annual
report</header><text>Not later than March 31 each year, beginning in 2010, the
Director of Developmental Test and Evaluation and the Director of Systems
Engineering shall jointly submit to the congressional defense committees a
report on the activities undertaken pursuant to subsections (a) and (b) during
the preceding year. Each report shall include a section on activities relating
to the major defense acquisition programs which shall set forth, at a minimum,
the following:</text>
<paragraph id="H31571F1EC86E4484B28F63EF5B392321"><enum>(1)</enum><text>A discussion of
the extent to which the major defense acquisition programs are fulfilling the
objectives of their systems engineering master plans and developmental test and
evaluation plans.</text>
</paragraph><paragraph id="HE23136056DCF4DD586CC3F8F3EB50133"><enum>(2)</enum><text>A discussion of
the waivers of and deviations from requirements in test and evaluation master
plans, systems engineering master plans, and other testing requirements that
occurred during the preceding year with respect to such programs, any concerns
raised by such waivers or deviations, and the actions that have been taken or
are planned to be taken to address such concerns.</text>
</paragraph><paragraph id="HA35E249309B347ADB5B05BC47F4CF924"><enum>(3)</enum><text>An assessment of
the organization and capabilities of the Department of Defense for systems
engineering, development planning, and developmental test and evaluation with
respect to such programs.</text>
</paragraph><paragraph id="H1584138C6E6A4E75810AA69F1D8546B3"><enum>(4)</enum><text>Any comments on
such report that the Secretary of Defense considers appropriate.</text>
</paragraph></subsection><subsection id="H204322E6AA2D4946B7B34F9F003963A4"><enum>(d)</enum><header>Joint
guidance</header><text>The Director of Developmental Test and Evaluation and
the Director of Systems Engineering shall jointly, in coordination with the
official designated by the Secretary of Defense under section 103 of the
<short-title>Weapon Systems Acquisition Reform Act of
2009</short-title>, issue guidance on the following:</text>
<paragraph id="H4DDE0AD2B50249CF8CC3C14C8D43E714"><enum>(1)</enum><text>The development
and tracking of detailed measurable performance criteria as part of the systems
engineering master plans and the developmental test and evaluation plans within
the test and evaluation master plans of major defense acquisition
programs.</text>
</paragraph><paragraph id="HAED9AF53EA4B4FB7AB4A23D94D2AE060"><enum>(2)</enum><text>The use of
developmental test and evaluation to measure the achievement of specific
performance objectives within a systems engineering master plan.</text>
</paragraph><paragraph id="HC38509451B08456C931DFF61C123297E"><enum>(3)</enum><text>A system for
storing and tracking information relating to the achievement of the performance
criteria and objectives specified pursuant to this subsection.</text>
</paragraph></subsection><subsection id="HFF55D9C99ADD497CBDEAF20881C3A528"><enum>(e)</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 this
title.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFA333A2800D14FDEB49226900506581A"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title, as amended by section 101(a) of this Act, is further amended by
inserting after the item relating to section 139c the following new
item:</text>
<quoted-block id="H871944EF7F0C4E2E8AA415BA85C0439A" style="USC">
<toc>
<toc-entry idref="H61207DE92145445CBF4D63F756EB69AB" level="section">139d. Director of Developmental Test and Evaluation; Director
of Systems Engineering: joint
guidance.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD0EC84F96476464DBB7F140EF095E609"><enum>(b)</enum><header>Developmental
test and evaluation and systems engineering in the military departments and
defense agencies</header>
<paragraph id="H9D1E77D499E842A391778A97633A74B3"><enum>(1)</enum><header>Plans</header><text>The
service acquisition executive of each military department and each Defense
Agency with responsibility for a major defense acquisition program shall
develop and implement plans to ensure the military department or Defense Agency
concerned has provided appropriate resources for each of the following:</text>
<subparagraph id="H72B3DA1BB3534F92AEE1B8F9636347CE"><enum>(A)</enum><text>Developmental
testing organizations with adequate numbers of trained personnel in order
to—</text>
<clause id="H40399DE09719415FBC759E8507C935C1"><enum>(i)</enum><text>ensure that
developmental 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>
</clause><clause id="H3D420BE0BC5A4A4C89DEA9A0A9AE3818"><enum>(ii)</enum><text>participate in
the planning of developmental test and evaluation activities, including the
preparation and approval of a developmental test and evaluation plan within the
test and evaluation master plan for each major defense acquisition program;
and</text>
</clause><clause id="H3213F3E8B9074AFAA06378CC300A50D4"><enum>(iii)</enum><text>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>
</clause></subparagraph><subparagraph id="H5725B8C6F00C4FE1A79F4DC8D4BB1BF4"><enum>(B)</enum><text>Development
planning and systems engineering organizations with adequate numbers of trained
personnel in order to—</text>
<clause id="H66EDD24E754146BBB1440DD3191BC832"><enum>(i)</enum><text>support key
requirements, acquisition, and budget decisions made for each major defense
acquisition program prior to Milestone A approval and Milestone B approval
through a rigorous systems analysis and systems engineering process;</text>
</clause><clause id="H405E84B4CBE44FA7A417E67FA0F286AB"><enum>(ii)</enum><text>include a robust
program for improving reliability, availability, maintainability, and
sustainability as an integral part of design and development within the systems
engineering master plan for each major defense acquisition program; and</text>
</clause><clause id="H9840663A44F64159AAE592A5EBEDA0E9"><enum>(iii)</enum><text>identify systems
engineering requirements, including reliability, availability, maintainability,
and lifecycle management and sustainability requirements, during the Joint
Capabilities Integration Development System process, and incorporate such
systems engineering requirements into contract requirements for each major
defense acquisition program.</text>
</clause></subparagraph></paragraph><paragraph id="HC77AF155004D4FDC8A7FAA99AF00E37C"><enum>(2)</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 and each Defense Agency with responsibility for a major
defense acquisition program shall submit to the Director of Developmental Test
and Evaluation and the Director of Systems Engineering a report on the extent
to which—</text>
<subparagraph id="H11FE8C331679473E8D18528D760C00EA"><enum>(A)</enum><text>such military
department or Defense Agency has implemented, or is implementing, the plan
required by paragraph (1); and</text>
</subparagraph><subparagraph id="H718B14C83C5F4114A6EB4BF11E18B57B"><enum>(B)</enum><text>additional
authorities or resources are needed to attract, develop, retain, and reward
developmental test and evaluation personnel and systems engineers with
appropriate levels of hands-on experience and technical expertise to meet the
needs of such military department or Defense Agency.</text>
</subparagraph></paragraph><paragraph id="H42B2446E468949848E4B70903CE3B7EF"><enum>(3)</enum><header>Assessment of
reports by directors of developmental test and evaluation and systems
engineering</header><text>The first annual report submitted to Congress by the
Director of Developmental Test and Evaluation and the Director of Systems
Engineering under section 139d(c) of title 10, United States Code (as added by
subsection (a)), shall include an assessment by the Directors of the reports
submitted by the service acquisition executives to the Directors under
paragraph (2).</text>
</paragraph></subsection></section><section id="H782AEEA454F14EA6B953226EAAB2CD54"><enum>103.</enum><header>Performance
assessments and root cause analyses for major defense acquisition
programs</header>
<subsection id="HA271A4C30EEF47A7B30A8F9E5FD1F469"><enum>(a)</enum><header>Designation of
senior official responsibility for performance assessments and root cause
analyses</header>
<paragraph id="H7DF073E6FFEC4DF6A784C47CCA89F618"><enum>(1)</enum><header>In
general</header><text>The Secretary of Defense shall designate a senior
official in the Office of the Secretary of Defense as the principal official of
the Department of Defense responsible for conducting and overseeing performance
assessments and root cause analyses for major defense acquisition
programs.</text>
</paragraph><paragraph id="H46F15F876AD64276A23CB3974F578DF3"><enum>(2)</enum><header>No program
execution responsibility</header><text>The Secretary shall ensure that the
senior official designated under paragraph (1) is not responsible for program
execution.</text>
</paragraph><paragraph id="H7AD2DDC48DAF450C9A90041738AC7895"><enum>(3)</enum><header>Staff and
resources</header><text>The Secretary shall assign to the senior official
designated under paragraph (1) appropriate staff and resources necessary to
carry out official's function under this section.</text>
</paragraph></subsection><subsection id="H295AB67B83BF499CB1E9868F37DFC20B"><enum>(b)</enum><header>Responsibilities</header><text>The
senior official designated under subsection (a) shall be responsible for the
following:</text>
<paragraph id="H6331246BA74C486087FBEE32B14ED50B"><enum>(1)</enum><text>Carrying out
performance assessments of major defense acquisition programs in accordance
with the requirements of subsection (c) periodically or when requested by the
Secretary of Defense, the Under Secretary of Defense for Acquisition,
Technology and Logistics, the Secretary of a military department, or the head
of a Defense Agency.</text>
</paragraph><paragraph id="H4D0CDE9A1481459C8669D97F424886D5"><enum>(2)</enum><text>Conducting root
cause analyses for major defense acquisition programs in accordance with the
requirements of subsection (d) when required by section 2433a(a)(1) of title
10, United States Code (as added by section 206(a) of this Act), or when
requested by the Secretary of Defense, the Under Secretary of Defense for
Acquisition, Technology and Logistics, the Secretary of a military department,
or the head of a Defense Agency.</text>
</paragraph><paragraph id="H1C94DFB5A0C8420DBB6D4463718E50B8"><enum>(3)</enum><text>Issuing policies,
procedures, and guidance governing the conduct of performance assessments and
root cause analyses by the military departments and the Defense
Agencies.</text>
</paragraph><paragraph id="H818158B307C14F56BBD742C0394BBB1A"><enum>(4)</enum><text>Evaluating the
utility of performance metrics used to measure the cost, schedule, and
performance of major defense acquisition programs, and making such
recommendations to the Secretary of Defense as the official considers
appropriate to improve such metrics.</text>
</paragraph><paragraph id="H4413029AA90548E2B5D52D65751714E2"><enum>(5)</enum><text>Advising
acquisition officials on performance issues regarding a major defense
acquisition program that may arise—</text>
<subparagraph id="HE159C1244672496DAC5CD1E722405226"><enum>(A)</enum><text>prior to
certification under section 2433a of title 10, United States Code (as so
added);</text>
</subparagraph><subparagraph id="H588E3532870B4A30AC82C5AC128F4D95"><enum>(B)</enum><text>prior to entry
into full-rate production; or</text>
</subparagraph><subparagraph id="H7BB489468AB348CA9746483F5A0DC6D8"><enum>(C)</enum><text>in the course of
consideration of any decision to request authorization of a multiyear
procurement contract for the program.</text>
</subparagraph></paragraph></subsection><subsection id="H900FEF6D641D4A48A7B2844C55C47CDF"><enum>(c)</enum><header>Performance
assessments</header><text>For purposes of this section, a performance
assessment with respect to a major defense acquisition program is an evaluation
of the following:</text>
<paragraph id="H1DDA2835C035475082C85D06AAC9ED4A"><enum>(1)</enum><text>The cost,
schedule, and performance of the program, relative to current metrics,
including performance requirements and baseline descriptions.</text>
</paragraph><paragraph id="H2735FC6928804908B0B49D7E5412FE76"><enum>(2)</enum><text>The extent to
which the level of program cost, schedule, and performance predicted relative
to such metrics is likely to result in the timely delivery of a level of
capability to the warfighter that is consistent with the level of resources to
be expended and provides superior value to alternative approaches that may be
available to meet the same military requirement.</text>
</paragraph></subsection><subsection id="H1DE8413AD56A427CBCCE210092B565DC"><enum>(d)</enum><header>Root cause
analyses</header><text>For purposes of this section and section 2433a of title
10, United States Code (as so added), a root cause analysis with respect to a
major defense acquisition program is an assessment of the underlying cause or
causes of shortcomings in cost, schedule, or performance of the program,
including the role, if any, of—</text>
<paragraph id="H73368D4E3DDE45949CE5196C4E164BE4"><enum>(1)</enum><text>unrealistic
performance expectations;</text>
</paragraph><paragraph id="H9B3599585C2A41B6BCD09815D5043AAC"><enum>(2)</enum><text>unrealistic
baseline estimates for cost or schedule;</text>
</paragraph><paragraph id="H4327440C65BA43A5A0AF3C597570EF8B"><enum>(3)</enum><text>immature
technologies or excessive manufacturing or integration risk;</text>
</paragraph><paragraph id="H0D2CA70BC9F74C1890AC41737A1893E7"><enum>(4)</enum><text>unanticipated
design, engineering, manufacturing, or technology integration issues arising
during program performance;</text>
</paragraph><paragraph id="H6720DF909E49444D953A121D298FDC67"><enum>(5)</enum><text>changes in
procurement quantities;</text>
</paragraph><paragraph id="H84CBFBCFF3AA46D4ADD15AB307C224CF"><enum>(6)</enum><text>inadequate program
funding or funding instability;</text>
</paragraph><paragraph id="H175C3259B3FA4736835F6EB96F92DA28"><enum>(7)</enum><text>poor performance
by government or contractor personnel responsible for program management;
or</text>
</paragraph><paragraph id="H06C61D1C539A46F696D96574F8C97FE4"><enum>(8)</enum><text>any other
matters.</text>
</paragraph></subsection><subsection id="HB6C8408869274623B061CBA51958A8AE"><enum>(e)</enum><header>Support of
applicable capabilities and expertise</header><text>The Secretary of Defense
shall ensure that the senior official designated under subsection (a) has the
support of other Department of Defense officials with relevant capabilities and
expertise needed to carry out the requirements of this section.</text>
</subsection><subsection id="H282B5AC50C494AFF97E1DAB2AA2BBB54"><enum>(f)</enum><header>Annual
report</header><text>Not later than March 1 each year, beginning in 2010, the
official responsible for conducting and overseeing performance assessments and
root cause analyses for major defense acquisition programs shall submit to the
congressional defense committees a report on the activities undertaken under
this section during the preceding year.</text>
</subsection></section><section display-inline="no-display-inline" id="H969865D7AA1845AB84848BA1E04D22F8" section-type="subsequent-section"><enum>104.</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="HEC143A88ADF44146A8400BB303BC67F3"><enum>(a)</enum><header>Assessment by
Director of Defense Research and Engineering</header>
<paragraph id="H5D236771C4E7442AB9CC595A4A35FC76"><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="H9A7AED343400489099D6AA6A005859EC" style="OLC">
<subsection id="H46BCB4EEA6A444DE9EB0CBF7BD3665BD"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HB3D998998A444887BB598DA1E8C6007E"><enum>(1)</enum><text>The Director of Defense
Research and Engineering, in consultation with the Director of Developmental
Test and Evaluation, 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="H40792BEC8BD44A1783CC98064CFFE82A" indent="up1"><enum>(2)</enum><text>The Director shall submit to the
Secretary of Defense and to the congressional defense committees by March 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="H048E685B908543C588F16C3763132E49"><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, 2010,
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="H9FEAEFCE4ED4403798406792ED7551A8"><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="HB0DD9FF0C5544FDA81FF7A99ED50B74D"><enum>(1)</enum><text>The requirements
under the amendment made by subsection (a)(1).</text>
</paragraph><paragraph id="HBB5A493E61E141ABB0562E465864C1B2"><enum>(2)</enum><text>The technological
maturity assessments required by section 2366b(a) of title 10, United States
Code.</text>
</paragraph><paragraph id="HFAABFF4DF849484CB28E0B2C4D06C759"><enum>(3)</enum><text>The requirements
of Department of Defense Instruction 5000, as revised.</text>
</paragraph></subsection><subsection id="HC1B46BFD60E0444D8CF31FC56741FE78"><enum>(c)</enum><header>Technological
maturity standards</header><text display-inline="yes-display-inline">Not later
than 180 days after the date of the enactment of this Act, the Director of
Defense Research and Engineering, in consultation with the Director of
Developmental Test and Evaluation, shall develop knowledge-based standards
against which to measure the technological maturity and integration risk of
critical technologies at key stages in the acquisition process for purposes of
conducting the reviews and assessments of major defense acquisition programs
required by subsection (c) of section 139a of title 10, United States Code (as
so added).</text>
</subsection></section><section display-inline="no-display-inline" id="H775CD49A61EF41D1B4E889A31E8D3C89" section-type="subsequent-section"><enum>105.</enum><header>Role of the
commanders of the combatant commands in identifying joint military
requirements</header>
<subsection id="HF1BC7B4E3B7745149B4EF5F760E164B0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 181(d) of
title 10, United States Code, as amended by section 101(d) of this Act, is
further amended—</text>
<paragraph id="HCFA5F6E1F6B14DF9B5F9F53E02B1C339"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>The Under Secretary</quote>; and</text>
</paragraph><paragraph id="HF6E67CCC045E42268398DDC9604F67C9"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H9650620061C946E9909DBF90E1D73FEF" style="OLC">
<paragraph id="H32EFB12303754D619BAAC08FDAE3D2A4" 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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H85593A13F6244E0B84CB7BF157EAF119"><enum>(b)</enum><header>Input from
Commanders of Combatant Commands</header><text display-inline="yes-display-inline">The Joint Requirements Oversight Council in
the Department of Defense shall seek and consider input from the commanders of
combatant commands, in accordance with section 181(d) of title 10, United
States Code (as amended by subsection (a)). Such input may include, but is not
limited to, an assessment of the following:</text>
<paragraph id="HCAE1B129D5904C66AC3AF21EFA6B7887"><enum>(1)</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>
</paragraph><paragraph id="H649A745B0F124394B657E41619A19ADA"><enum>(2)</enum><text>The necessity and
sufficiency of a proposed joint military requirement in terms of current and
projected missions or threats.</text>
</paragraph><paragraph id="H47752AFBA8E24881A9803084F34608B9"><enum>(3)</enum><text>The relative
priority of a proposed joint military requirement in comparison with other
joint military requirements within the theater of operations of the commander
of a combatant command.</text>
</paragraph><paragraph id="H88C9DD075AFB40328C36C8DA7AC61D9A"><enum>(4)</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>
</paragraph></subsection><subsection id="H3B43BC07DE5948FB865D526E2AC926C2"><enum>(c)</enum><header>Comptroller
General of the United States review of implementation</header>
<paragraph id="H3A668406C77541FB9A59780F2543D07B"><enum>(1)</enum><header>Requirement</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—</text>
<subparagraph id="HEBC7C8CFB8944C61813C5E5D52D276F6"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="HB1BF6B876AC74734A42C462E8DCEB6BD"><enum>(B)</enum><text>the amendments to
subsection (b) of section 181 of title 10, United States Code, made by section
942 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law
110–181; 122 Stat. 287) and by section 201(b) of this Act; and</text>
</subparagraph><subparagraph id="H536CC34B537A479699D713D1603416F6"><enum>(C)</enum><text>the requirements
of section 201(c) of this Act.</text>
</subparagraph></paragraph><paragraph id="H4ED413F105AA4F8A9186FFC198CE67EB"><enum>(2)</enum><header>Matters
covered</header><text>The report shall include, at a minimum, an assessment
of—</text>
<subparagraph id="H7DE4C993A9CC4F3DBB8656A387C418C8"><enum>(A)</enum><text>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>
</subparagraph><subparagraph id="H64A63C3123DD41C39FE97DF3DE25EC95"><enum>(B)</enum><text>the quality and
effectiveness of efforts to estimate the level of resources needed to fulfill
joint military requirements; and</text>
</subparagraph><subparagraph id="HAF3AC34E613548C5B143432FF355D44B"><enum>(C)</enum><text>the extent to
which the Council has considered trade-offs among cost, schedule, and
performance objectives.</text>
</subparagraph></paragraph></subsection></section><enum>II</enum><header>Acquisition
Policy</header>
<section id="H28504DFF3C6244E6B3E70FA4F59B1F11"><enum>201.</enum><header>Consideration
of trade-offs among cost, schedule, and performance objectives in Department of
Defense acquisition programs</header>
<subsection id="H705675D49D4F4F78A083D650A53C53D9"><enum>(a)</enum><header>Consideration of
Trade-Offs</header>
<paragraph id="HB08053D9CD924EA89B28B5271D18C167"><enum>(1)</enum><header>In
general</header><text>The Secretary of Defense shall ensure that mechanisms are
developed and implemented to require consideration of trade-offs among cost,
schedule, and performance objectives as part of the process for developing
requirements for Department of Defense acquisition programs.</text>
</paragraph><paragraph id="HD8A42169871B473CAF5DA1D0E9412AFE"><enum>(2)</enum><header>Elements</header><text>The
mechanisms required under this subsection shall ensure, at a minimum,
that—</text>
<subparagraph id="H08F3A0C1C5FB46C395356B9DC6AA3649"><enum>(A)</enum><text>Department of
Defense officials responsible for acquisition, budget, and cost estimating
functions are provided an appropriate opportunity to develop estimates and
raise cost and schedule matters before performance objectives are established
for capabilities for which the Chairman of the Joint Requirements Oversight
Council is the validation authority; and</text>
</subparagraph><subparagraph id="H975DBD86A70D4DC38B7E03AF99945088"><enum>(B)</enum><text>the process for
developing requirements is structured to enable incremental, evolutionary, or
spiral acquisition approaches, including the deferral of 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></subsection><subsection id="HF6AC552879CA4B1FBA52B4D61CF34E89"><enum>(b)</enum><header>Duties of Joint
Requirements Oversight Council</header><text>Section 181(b) of title 10, United
States Code, is amended—</text>
<paragraph id="HD2C8BFFB5BA44EB3A9B016103D351C39"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HB095308D5D4A49D6BE0DDB4988F8830D"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (A);</text>
</subparagraph><subparagraph id="HB8F4703D83924FEC90C84931804DE013"><enum>(B)</enum><text>by inserting
<quote>and</quote> at the end of subparagraph (B) after the semicolon;
and</text>
</subparagraph><subparagraph id="HEA74405B68F74E0C9752944D4610769A"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H25BE6B47EA8C4F4EBCF7AF36A808DCA9" style="USC">
<subparagraph id="HBA8649E695154895BBAB7554617A96C6"><enum>(C)</enum><text display-inline="yes-display-inline">in ensuring the consideration of trade-offs
among cost, schedule, and performance objectives for joint military
requirements in consultation with the advisors specified in subsection
(d);</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1CC64CE523CC4E36B6E64C2374DCE7EE"><enum>(2)</enum><text>in paragraph
(3)—</text>
<subparagraph id="HA83EEC7C469C443FB4398891CAF68644"><enum>(A)</enum><text>by inserting
<quote>, in consultation with the Under Secretary of Defense (Comptroller), the
Under Secretary of Defense for Acquisition, Technology, and Logistics, and the
Director of Cost Assessment and Performance Evaluation,</quote> after
<quote>assist the Chairman</quote>; and</text>
</subparagraph><subparagraph id="H6390A54B51D648B3AC233E7752562D48"><enum>(B)</enum><text>by striking
<quote>and</quote> after the semicolon at the end;</text>
</subparagraph></paragraph><paragraph id="HB2F6FAAC5E424EC68FFFD17D98EAE7F7"><enum>(3)</enum><text>in paragraph (4),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H73B01FBECFB647E2BE27918C53B88C73"><enum>(4)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H943EC61DB4B24B8289A3D97CAFADDE0D" style="USC">
<paragraph id="H4692A6BB65004052838A6F3F07C51D64"><enum>(5)</enum><text display-inline="yes-display-inline">assist the Chairman, in consultation with
the commanders of the combatant commands and the Under Secretary of Defense for
Acquisition, Technology, and Logistics, in establishing an objective for the
overall period of time within which an initial operational capability should be
delivered to meet each joint military
requirement.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFD7AB7830A9849E681EB58EF6796E074"><enum>(c)</enum><header>Review of Joint
Military Requirements</header><text>The Secretary of Defense shall ensure that
each new joint military requirement recommended by the Joint Requirements
Oversight Council is reviewed to ensure that the Joint Requirements Oversight
Council has, in making such recommendation—</text>
<paragraph id="H6200889AB63540B1A837BCB44D503CE6"><enum>(1)</enum><text>taken appropriate
action to seek and consider input from the commanders of the combatant
commands, in accordance with the requirements of section 181(d) of title 10,
United States Code (as amended by section 105(a) of this Act);</text>
</paragraph><paragraph id="HE2D1170B7334491B9028291766445684"><enum>(2)</enum><text>engaged in
consideration of trade-offs among cost, schedule, and performance objectives in
accordance with the requirements of section 181(b)(1)(C) of title 10, United
States Code (as added by subsection (b)); and</text>
</paragraph><paragraph id="H149C4ADE80B9425488ECED1362A55E0B"><enum>(3)</enum><text>engaged in
consideration of issues of joint portfolio management, including alternative
material and non-material solutions, as provided in Department of Defense
instructions for the development of joint military requirements.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H873B902AF0D74ACC903411EF63EA5F9C"><enum>(d)</enum><header>Study guidance
for analyses of alternatives</header><text display-inline="yes-display-inline">The Director of Cost Assessment and Program
Evaluation shall take the lead in the development of study guidance for an
analysis of alternatives for each joint military requirement for which the
Chairman of the Joint Requirements Oversight Council is the validation
authority. In developing the guidance, the Director shall solicit the advice of
appropriate officials within the Department of Defense and ensure that the
guidance requires, at a minimum—</text>
<paragraph id="H1DD3908284444384BF00E6BE50D3F042"><enum>(1)</enum><text>full consideration
of possible trade-offs among cost, schedule, and performance objectives for
each alternative considered; and</text>
</paragraph><paragraph id="H5AA8B3BA29564115AA3112BA99A1D01F"><enum>(2)</enum><text>an assessment of
whether or not the joint military requirement can be met in a manner that is
consistent with the cost and schedule objectives recommended by the Joint
Requirements Oversight Council.</text>
</paragraph></subsection><subsection id="HC745EBF79E6F4C8F85AA8CEB6DE18727"><enum>(e)</enum><header>Analysis of
alternatives in certification for Milestone A</header><text>Section 2366a(a) of
title 10, United States Code, as amended by section 101(d)(3) of this Act, is
further amended—</text>
<paragraph id="HE9A0BCB2CF8842C78B4BA6925DEBDF10"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of paragraph (3);</text>
</paragraph><paragraph id="HFA16F11D29FC4F4795F0734602F44699"><enum>(2)</enum><text>by redesignating
paragraph (4) as paragraph (5); and</text>
</paragraph><paragraph id="HE9A92A887E384206A95EC26F04713FB2"><enum>(3)</enum><text>by inserting after
paragraph (3) the following new paragraph (4):</text>
<quoted-block display-inline="no-display-inline" id="H781640A1B18E4009A3793122058DE6F4" style="USC">
<paragraph id="HBC221FBCF4EF4979A58413DDEAFF9AFC"><enum>(4)</enum><text display-inline="yes-display-inline">that an analysis of alternatives has been
performed consistent with study guidance developed by the Director of Cost
Assessment and Program Evaluation;
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFDA684CDFE774793A729E9E5C55ED4BA"><enum>(f)</enum><header>Duties of
Milestone Decision Authority</header><text>Section 2366b(a)(1)(B) of such title
is amended by inserting <quote>appropriate trade-offs among cost, schedule, and
performance objectives have been made to ensure that</quote> before <quote>the
program is affordable</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="H36DE9695716D489E90717403E201FDFA" section-type="subsequent-section"><enum>202.</enum><header>Acquisition
strategies to ensure competition throughout the lifecycle of major defense
acquisition programs</header>
<subsection id="H0C28D99E01524C1D9D3E4A0877E5C00C"><enum>(a)</enum><header>Acquisition
strategies To ensure competition</header><text>The Secretary of Defense shall
ensure that the acquisition strategy for each major defense acquisition program
includes—</text>
<paragraph id="H4B92B2BFFB9F441ABD5ECEAC70497AAB"><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="HBED98E4EE3F4439DA0989EC8FBBB183C"><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="HF1C1C458451D4109873A6EB67DF06253"><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)(1) may include measures
to achieve the following, in appropriate cases if such measures are
cost-effective:</text>
<paragraph id="H5F0086E2C97C42AE95634F1ECA56DBF5"><enum>(1)</enum><text>Competitive
prototyping.</text>
</paragraph><paragraph id="H8D89E87F9761474BB318DDD6FC656F6A"><enum>(2)</enum><text>Dual-sourcing.</text>
</paragraph><paragraph id="H962FBA2447F140A5A3E9BF66566D77A2"><enum>(3)</enum><text>Unbundling of
contracts.</text>
</paragraph><paragraph id="HCBBDDA96BF934CA4B299B6B351F6A2C3"><enum>(4)</enum><text>Funding of
next-generation prototype systems or subsystems.</text>
</paragraph><paragraph id="H1838EA756C2F4F87901CC9E7C740BF9C"><enum>(5)</enum><text>Use of modular,
open architectures to enable competition for upgrades.</text>
</paragraph><paragraph id="H891D6B987B6B4897AB7E980F29579CEE"><enum>(6)</enum><text>Use of
build-to-print approaches to enable production through multiple sources.</text>
</paragraph><paragraph id="H2E5006248F5346C6AAC29EF054F872C7"><enum>(7)</enum><text>Acquisition of
complete technical data packages.</text>
</paragraph><paragraph id="HE6094C56A2CA4CE483F67DFF7BA6B323"><enum>(8)</enum><text>Periodic
competitions for subsystem upgrades.</text>
</paragraph><paragraph id="H25CBB12E4FBB4303BAC05FA6F3F252A7"><enum>(9)</enum><text>Licensing of
additional suppliers.</text>
</paragraph><paragraph id="HA02B5B9B02EA437F8C30A01ECD8648AF"><enum>(10)</enum><text>Periodic system
or program reviews to address long-term competitive effects of program
decisions.</text>
</paragraph></subsection><subsection id="HA3B4314BB5624058BD3528BAF6805228"><enum>(c)</enum><header>Additional
measures To ensure competition at subcontract level</header><text>The Secretary
shall take actions to ensure fair and objective <quote>make-buy</quote>
decisions by prime contractors on major defense acquisition programs by—</text>
<paragraph id="H08473B252B414A5090CF5D6D783E064E"><enum>(1)</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 major weapon systems;</text>
</paragraph><paragraph id="HC9B41F97E85B49C29CD1A4B2531E06C0"><enum>(2)</enum><text>providing for
government surveillance 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; and</text>
</paragraph><paragraph id="HF37C65F3FC064448B30ACC78A45D6680"><enum>(3)</enum><text>providing for the
assessment of the extent to which a contractor has given full and fair
consideration to qualified sources other than the contractor in sourcing
decisions as a part of past performance evaluations.</text>
</paragraph></subsection><subsection id="H1D0DE9FF8A38418FBD6A676F17B4803D"><enum>(d)</enum><header>Consideration of
competition throughout operation and sustainment of major weapon
systems</header><text display-inline="yes-display-inline">Whenever a decision
regarding source of repair results in a plan to award a contract for
performance of maintenance and sustainment of a major weapon system, the
Secretary shall take actions to ensure that, to the maximum extent practicable
and consistent with statutory requirements, contracts for such maintenance and
sustainment are awarded on a competitive basis and give full consideration to
all sources (including sources that partner or subcontract with public or
private sector repair activities).</text>
</subsection><subsection id="H8064C774FFDA41C7A010246FC4ABF371"><enum>(e)</enum><header>Applicability</header>
<paragraph id="H98B15281962C45C4A4E5B3AFB346BE7B"><enum>(1)</enum><header>Strategy and
measures to ensure competition</header><text>The requirements of subsections
(a) and (b) 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>
</paragraph><paragraph id="H5B835D454BB44336AC31BA41FA1B9F8D"><enum>(2)</enum><header>Additional
actions</header><text>The actions required by subsections (c) and (d) shall be
taken within 180 days after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="H2BF47CAEB2A14061AEFFAFB061202F35"><enum>203.</enum><header>Prototyping
requirements for major defense acquisition programs</header>
<subsection id="HFFA42BAC92D44ED2B5DE7FA986789AFA"><enum>(a)</enum><header>Competitive
prototyping</header><text>Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense shall modify the guidance of
the Department of Defense relating to the operation of the acquisition system
with respect to competitive prototyping for major defense acquisition programs
to ensure the following:</text>
<paragraph id="HDC763C94BC104708A57908170633FE80"><enum>(1)</enum><text>That the
acquisition strategy for each major defense acquisition program provides for
competitive 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 pursuant to paragraph
(2).</text>
</paragraph><paragraph id="H3E81CC6623D94FAEB8E03469EEF34796"><enum>(2)</enum><text>That the Milestone
Decision Authority may waive the requirement in paragraph (1) only—</text>
<subparagraph id="HBA6910EA28A2412D8E117581A585CD08"><enum>(A)</enum><text>on the basis that
the cost of producing competitive prototypes exceeds the expected life-cycle
benefits (in constant dollars) of producing such prototypes, including the
benefits of improved performance and increased technological and design
maturity that may be achieved through competitive prototyping; or</text>
</subparagraph><subparagraph id="HD1A05BFA73C548FD929173FD4480C337"><enum>(B)</enum><text>on the basis that,
but for such waiver, the Department would be unable to meet critical national
security objectives.</text>
</subparagraph></paragraph><paragraph id="H81542A08330A4817BD3E76907A262175"><enum>(3)</enum><text display-inline="yes-display-inline">That whenever a Milestone Decision
Authority authorizes a waiver pursuant to paragraph (2), the Milestone Decision
Authority—</text>
<subparagraph id="H19B6BAB5AEA14831A992F4D84097FC29"><enum>(A)</enum><text>shall require that
the program produce a prototype before Milestone B approval (or Key Decision
Point B approval in the case of a space program) if the expected life-cycle
benefits (in constant dollars) of producing such prototype exceed its cost and
its production is consistent with achieving critical national security
objectives; and</text>
</subparagraph><subparagraph id="H7523F83B36F944C3B638BE50A3711F2A"><enum>(B)</enum><text>shall notify the
congressional defense committees in writing not later than 30 days after the
waiver is authorized and include in such notification the rationale for the
waiver and the plan, if any, for producing a prototype.</text>
</subparagraph></paragraph><paragraph id="H1499ADD396DF44E1895D29ABC4BA194B"><enum>(4)</enum><text>That prototypes
may be required under paragraph (1) or (3) for the system to be acquired or, if
prototyping of the system is not feasible, for critical subsystems of the
system.</text>
</paragraph></subsection><subsection id="HB7FD48EDEE4C4BE1BA5DCA7043586E1F"><enum>(b)</enum><header>Comptroller
General Review of Certain Waivers</header>
<paragraph id="H55AD91BF97C540629A37F8588B5B19AD"><enum>(1)</enum><header>Notice to
comptroller general</header><text>Whenever a Milestone Decision Authority
authorizes a waiver of the requirement for prototypes pursuant to paragraph (2)
of subsection (a) on the basis of excessive cost, the Milestone Decision
Authority shall submit the notification of the waiver, together with the
rationale, to the Comptroller General of the United States at the same time it
is submitted to the congressional defense committees.</text>
</paragraph><paragraph id="HA59DC7B558AB4F7F9685DAA1019C3E7B"><enum>(2)</enum><header>Comptroller
general review</header><text>Not later than 60 days after receipt of a
notification of a waiver under paragraph (1), the Comptroller General
shall—</text>
<subparagraph id="HA6845E182F6941739310C56479B125CE"><enum>(A)</enum><text>review the
rationale for the waiver; and</text>
</subparagraph><subparagraph id="HE099D088011E413995F78FBCE65F1E8E"><enum>(B)</enum><text>submit to the
congressional defense committees a written assessment of the rationale for the
waiver.</text>
</subparagraph></paragraph></subsection></section><section id="H578B1F79331B469DA5B59FB558512187"><enum>204.</enum><header>Actions to
identify and address systemic problems in major defense acquisition programs
prior to Milestone B approval</header>
<subsection id="H71BC9D6D654442169C958614ECB7E9EC"><enum>(a)</enum><header>Modification to
certification requirement</header><text>Subsection (a) of section 2366a of
title 10, United States Code, is amended by striking <quote>may not receive
Milestone A approval, or Key Decision Point A approval in the case of a space
program,</quote> and inserting <quote>may not receive Milestone A approval, or
Key Decision Point A approval in the case of a space program, or otherwise be
initiated prior to Milestone B approval, or Key Decision Point B approval in
the case of a space program,</quote>.</text>
</subsection><subsection id="HF3C1C32BDC2241EDAD9FE21261875046"><enum>(b)</enum><header>Modification to
notification requirement</header><text>Subsection (b) of such section is
amended—</text>
<paragraph id="H5A46A70716854C6DA19F2512388404BB"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>With respect to</quote>;</text>
</paragraph><paragraph id="H399D9B2E6B5046FAA389647E18E09D16"><enum>(2)</enum><text>in paragraph (1),
as so designated, by striking <quote>by at least 25 percent,</quote> and
inserting <quote>by at least 25 percent, or the program manager determines that
the period of time required for the delivery of an initial operational
capability is likely to exceed the schedule objective established pursuant to
section 181(b)(5) of this title by more than 25 percent,</quote>; and</text>
</paragraph><paragraph id="H6F98DA4EC0DA457083DD17FABA9C1920"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H9A53B07175B8428680296AFA6E31BF3A" style="OLC">
<paragraph id="H190570FDC930401DA3F100BC1CAE93DE" indent="up1"><enum>(2)</enum><text>Not later than 30 days after a
program manager submits a notification to the Milestone Decision Authority
pursuant to paragraph (1) with respect to a major defense acquisition program,
the Milestone Decision Authority shall submit to the congressional defense
committees a report that—</text>
<subparagraph id="HE5B9F6CD42394259BA8BCD73C830FD6D"><enum>(A)</enum><text>identifies the root causes of the cost
or schedule growth in accordance with applicable policies, procedures, and
guidance;</text>
</subparagraph><subparagraph id="H0D5DEBE3B85F4E33B81C7298EAE295AA"><enum>(B)</enum><text>identifies appropriate acquisition
performance measures for the remainder of the development of the program;
and</text>
</subparagraph><subparagraph id="HB7217AA06AE1402CB3F9A30F15F1CA2A"><enum>(C)</enum><text>includes one of the following:</text>
<clause id="H0D061877AD974926926D53F3D144F6C2"><enum>(i)</enum><text>A written certification (with a
supporting explanation) stating that—</text>
<subclause id="HB2AEF05D37A0424189836D23F6BA9EF7"><enum>(I)</enum><text>the program is essential to national
security;</text>
</subclause><subclause id="HF68B8A5D86654F53BFF4A8FF41EE1380"><enum>(II)</enum><text>there are no alternatives to the program
that will provide acceptable military capability at less cost;</text>
</subclause><subclause id="HC65464D2799A40BBA8BF523AD22FD9F5"><enum>(III)</enum><text>new estimates of the development cost
or schedule, as appropriate, are reasonable; and</text>
</subclause><subclause id="HC82818A47C374A96A63D945D59733296"><enum>(IV)</enum><text>the management structure for the program
is adequate to manage and control program development cost and schedule.</text>
</subclause></clause><clause id="HEE02FB281F9A4263957F21661840169D"><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><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H64ACB51BA13B42459F81970002D99629"><enum>(c)</enum><header>Application to
ongoing programs</header>
<paragraph id="HAB524DAC54A841BEAAA150384D56E9C7"><enum>(1)</enum><header>In
general</header><text>Each major defense acquisition program described in
paragraph (2) shall be certified in accordance with the requirements of section
2366a of title 10, United States Code (as amended by this section), within one
year after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H5496CB0039A44F988A677A5D8E2E054B"><enum>(2)</enum><header>Covered
programs</header><text>The requirement in paragraph (1) shall apply to any
major defense acquisition program that—</text>
<subparagraph id="H2CDE531AD6594B0A8CF35B97E31181A5"><enum>(A)</enum><text>was initiated
before the date of the enactment of this Act; and</text>
</subparagraph><subparagraph id="HDADEB7E80272419D918F682CCE9B083A"><enum>(B)</enum><text>as of the date of
certification under paragraph (1) has not otherwise been certified pursuant to
either section 2366a (as so amended) or 2366b of title 10, United States
Code.</text>
</subparagraph></paragraph></subsection></section><section id="HCBC735DD1EAC4BAE80D1EB469F9EAA2F"><enum>205.</enum><header>Additional
requirements for certain major defense acquisition programs</header>
<subsection id="HAC163787C57C4F308A2E73FF2841908C"><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="HBB51D6E4772841E186C1E856B985E0C7"><enum>(1)</enum><text>in subsection
(d)—</text>
<subparagraph id="H25A2AB84D0384FEB84CDE147771E04B3"><enum>(A)</enum><text>by inserting
<quote>(1)</quote> before <quote>The milestone decision authority may</quote>;
and</text>
</subparagraph><subparagraph id="HA91074E3B2FD4A6E8B25C003DAB577A1"><enum>(B)</enum><text>by striking the
second sentence and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6E2BB1F4FD9B427F8BB59376331C8A7B" style="OLC">
<paragraph id="H8872616F87874444A4B059ECCE26D637" 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="H83A054FB5524471C98600882668D9CBA"><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="H25F754274E92433D89F9DD65B6DAE9D8"><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="H2AB302AEAC904FD081B26D5D3E0E9A9C"><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="HBFF981A447DA4819AACC7939878494ED" style="OLC">
<subsection id="H2D3E955BEFC841E19F244E311F7A036C"><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
such certification components.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDE66A5D43BB54F1A843270F55EDED8C1"><enum>(3)</enum><text>in subsection
(a)—</text>
<subparagraph id="H726E2584C8744DC88B20D152D4A5EA73"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H711560BEBB664D679071E55EFB126334"><enum>(B)</enum><text>by redesignating
paragraph (2) as paragraph (3);</text>
</subparagraph><subparagraph id="H37C7CF48A1C1495BBD1D1731836110F9"><enum>(C)</enum><text>by inserting after
paragraph (1) the following new paragraph (2):</text>
<quoted-block id="HC89B13F25D504082BC5B59DCEE98B1C3" style="OLC">
<paragraph id="HA6E49F2F79CB49F7945852845891E400"><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;
and</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H138F2A6B634C4C868723965EEB26F204"><enum>(D)</enum><text>in paragraph (3),
as redesignated by subparagraph (B) of this paragraph—</text>
<clause id="H569EC59E924A44E58BEDFB7D011CF3E7"><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="H9151B74CB67746089C44DAD572AB9BF3"><enum>(ii)</enum><text>by
striking subparagraph (E); and</text>
</clause><clause id="HEA1954D6A2144074A7657192BA90D881"><enum>(iii)</enum><text>by
redesignating subparagraph (F) as subparagraph (E).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H99F0A88AB99340E09DE9BC86AC25FE7D"><enum>(b)</enum><header>Certification
and review of programs entering development prior to enactment of section 2366b
of title 10</header>
<paragraph id="H31422E5E2405476B8686D3AB08C3D076"><enum>(1)</enum><header>Determination</header><text>Not
later than 270 days after the date of the enactment of this Act, for each major
defense acquisition program that received Milestone B approval before January
6, 2006, and has not received Milestone C approval, and for each space program
that received Key Decision Point B approval before January 6, 2006, and has not
received Key Decision Point C approval, the Milestone Decision Authority shall
determine whether or not such program satisfies all of the certification
components specified in paragraphs (1) and (2) of subsection (a) of section
2366b of title 10, United States Code (as amended by subsection (a) of this
section).</text>
</paragraph><paragraph id="HF45D1418540546879BE9B3A2CD60AFE2"><enum>(2)</enum><header>Annual
review</header><text>The Milestone Decision Authority shall review any program
determined pursuant to paragraph (1) not to satisfy any of the certification
components of subsection (a) of section 2366b of title 10, United States Code
(as so amended), not less often than annually thereafter to determine the
extent to which such program currently satisfies such certification components
until such time as the Milestone Decision Authority determines that such
program satisfies all such certification components.</text>
</paragraph><paragraph id="H6F50C82088FC48F99079D150A400BFEB"><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 all of the certification components of
subsection (a) of section 2366b of title 10, United States Code, (as so
amended) 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
such certification components.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD0222550E5BC4D1E9DAED16A206ABBC8"><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 103 of this Act, shall assess the performance of each major defense
acquisition program that has exceeded critical cost growth thresholds
established pursuant to section 2433(e) of title 10, United States Code, but
has not been terminated in accordance with section 2433a of such title (as
added by section 206(a) of this Act) not less often than semi-annually until
one year after the date on which such program receives a new milestone
approval, in accordance with section 2433a(c)(3) of such title (as so added).
The results of reviews performed under this subsection shall be reported to the
Under Secretary of Defense for Acquisition, Technology, and Logistics and
summarized in the next annual report of such designated official.</text>
</subsection></section><section id="HD00A58378CF248AA9168B02C288F0FDB"><enum>206.</enum><header>Critical cost
growth in major defense acquisition programs</header>
<subsection id="H6C819D696FA740FC833B34FFDCAA7BC4"><enum>(a)</enum><header>Actions
following critical cost growth</header>
<paragraph id="HD7FCBCBE7C43449790A06A82747D3F29"><enum>(1)</enum><header>In
general</header><text>Chapter 144 of title 10, United States Code, is amended
by inserting after section 2433 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HBED3ED9E70374C0AAAA72DC4689B7D79" style="USC">
<section id="H9FF1EA42003B43D7840737F15126E664"><enum>2433a.</enum><header>Critical cost
growth in major defense acquisition programs</header>
<subsection id="HF363CED1FB2641BA93015EED5C45139C"><enum>(a)</enum><header>Reassessment of
program</header><text>If the program acquisition unit cost or procurement unit
cost of a major defense acquisition program or designated subprogram (as
determined by the Secretary under section 2433(d) of this title) 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>
<paragraph id="H4522BF01E64F4AAB85A76341110667BC"><enum>(1)</enum><text>determine the root
cause or causes of the critical cost growth in accordance with applicable
statutory requirements and Department of Defense policies, procedures, and
guidance; and</text>
</paragraph><paragraph id="H3777EE0649BC4C429EDF6B71F4082DD4"><enum>(2)</enum><text>in consultation
with the Director of Cost Assessment and Program Evaluation, carry out an
assessment of—</text>
<subparagraph id="H145E9A92981D48F6A21EF51FA24692B3"><enum>(A)</enum><text>the projected cost
of completing the program if current requirements are not modified;</text>
</subparagraph><subparagraph id="H6BBC1EF0A0964C798B96CD0B67D3C973"><enum>(B)</enum><text>the projected cost
of completing the program based on reasonable modification of such
requirements;</text>
</subparagraph><subparagraph id="H271B833639124C97B2F32A560F77409D"><enum>(C)</enum><text>the rough order of
magnitude of the costs of any reasonable alternative system or capability;
and</text>
</subparagraph><subparagraph id="HC8630F75A3C542859C7C6E489276A30B"><enum>(D)</enum><text>the need to reduce
funding for other programs due to the growth in cost of the program.</text>
</subparagraph></paragraph></subsection><subsection id="HAADB301A44FC40AA809EA597B8749F68"><enum>(b)</enum><header>Presumption of
termination</header><paragraph commented="no" display-inline="yes-display-inline" id="H1AE7D0C905284F7792013F9F47968A22"><enum>(1)</enum><text>After conducting the
reassessment required by subsection (a) with respect to a major defense
acquisition program, the Secretary shall terminate the program unless the
Secretary submits to Congress, before the end of the 60-day period beginning on
the day the Selected Acquisition Report containing the information described in
section 2433(g) of this title is required to be submitted under section 2432(f)
of this title, a written certification in accordance with paragraph (2).</text>
</paragraph><paragraph id="H79F10CCD67A04A8BA3AD4A61F0E5D95B" indent="up1"><enum>(2)</enum><text>A certification described by this
paragraph with respect to a major defense acquisition program is a written
certification that—</text>
<subparagraph id="H20E4B6F8F3714A16B2550D8E262194BB"><enum>(A)</enum><text>the continuation of the program is
essential to the national security;</text>
</subparagraph><subparagraph id="H61C8E412E5CF4A52870C5EF535D7672A"><enum>(B)</enum><text>there are no alternatives to the
program which will provide acceptable capability to meet the joint military
requirement (as defined in section 181(g)((1) of this title) at less
cost;</text>
</subparagraph><subparagraph id="H0C6BAF5755F240DAAF39CA5CDE13F9B9"><enum>(C)</enum><text>the new estimates of the program
acquisition unit cost or procurement unit cost have been determined by the
Director of Cost Assessment and Program Evaluation to be reasonable;</text>
</subparagraph><subparagraph id="H671B4EE9515A463A8A43A3714139A11C"><enum>(D)</enum><text>the program is a higher priority than
programs whose funding must be reduced to accommodate the growth in cost of the
program; and</text>
</subparagraph><subparagraph id="HEE5FFDB60C8A4D259E5E0F8200F40F34"><enum>(E)</enum><text>the management structure for the
program is adequate to manage and control program acquisition unit cost or
procurement unit cost.</text>
</subparagraph></paragraph><paragraph id="HCBDD8FAE15724BFDAD9648CEC5C7803F" indent="up1"><enum>(3)</enum><text>A written certification under
paragraph (2) shall be accompanied by a report presenting the root cause
analysis and assessment carried out pursuant to subsection (a) and the basis
for each determination made in accordance with subparagraphs (A) through (E) of
paragraph (2), together with supporting documentation.</text>
</paragraph></subsection><subsection id="HE6FC85BE1FBF465F8E8DC51EAD1C78E3"><enum>(c)</enum><header>Actions if
program not terminated</header><paragraph commented="no" display-inline="yes-display-inline" id="H2F09F96DC95A474DBE31624DEC943C78"><enum>(1)</enum><text>If the Secretary elects
not to terminate a major defense acquisition program pursuant to subsection
(b), the Secretary shall—</text>
<subparagraph id="HA7C87728805948F7AC8FB819276FA33E" indent="up1"><enum>(A)</enum><text>restructure the program in a manner
that addresses the root cause or causes of the critical cost growth, as
identified pursuant to subsection (a), and ensures that the program has an
appropriate management structure as set forth in the certification submitted
pursuant to subsection (b)(2)(E);</text>
</subparagraph><subparagraph id="HD7FB6CE5A89640D69DD44CD0762E1B41" indent="up1"><enum>(B)</enum><text>rescind the most recent Milestone
approval, or Key Decision Point approval in the case of a space program, for
the program and withdraw any associated certification under section 2366a or
2366b of this title;</text>
</subparagraph><subparagraph id="H521EFF0FF1354D7790397CB8BF84B3FC" indent="up1"><enum>(C)</enum><text>require a new Milestone approval, or
Key Decision Point approval in the case of a space program, for the program
before taking any contract action to enter a new contract, exercise an option
under an existing contract, or otherwise extend the scope of an existing
contract under the program, except to the extent determined necessary by the
Milestone Decision Authority, on a non-delegable basis, to ensure that the
program can be restructured as intended by the Secretary without unnecessarily
wasting resources;</text>
</subparagraph><subparagraph id="HA4C75C5AB6704A16856936E8193F0EA3" indent="up1"><enum>(D)</enum><text>include in the report specified in
paragraph (2) a description of all funding changes made as a result of the
growth in cost of the program, including reductions made in funding for other
programs to accommodate such cost growth; and</text>
</subparagraph><subparagraph id="HA3C8070DF8FA469E94FECFA4568DF917" indent="up1"><enum>(E)</enum><text>conduct regular reviews of the program
in accordance with the requirements of section 205 of the
<short-title>Weapon Systems Acquisition Reform Act of
2009</short-title>.</text>
</subparagraph></paragraph><paragraph id="H852901CE6F844C42BAA13BEABB462DC9" indent="up1"><enum>(2)</enum><text>For purposes of paragraph (1)(D), the
report specified in this paragraph is the first Selected Acquisition Report for
the program submitted pursuant to section 2432 of this title after the
President submits a budget pursuant to section 1105 of title 31, in the
calendar year following the year in which the program was restructured.</text>
</paragraph></subsection><subsection id="HDF1794B8C86F4629B4D9CF6F22471BB0"><enum>(d)</enum><header>Actions if
program terminated</header><text>If a major defense acquisition program is
terminated pursuant to subsection (b), the Secretary shall submit to Congress a
written report setting forth—</text>
<paragraph id="H2789663C1C11458585A8F56C20B781DF"><enum>(1)</enum><text>an explanation of
the reasons for terminating the program;</text>
</paragraph><paragraph id="H6B3CDC5CD3944349BA689B0A857AD314"><enum>(2)</enum><text>the alternatives
considered to address any problems in the program; and</text>
</paragraph><paragraph id="H10578E0FEF7B4B0D93431263E3C22D64"><enum>(3)</enum><text>the course the
Department plans to pursue to meet any continuing joint military requirements
otherwise intended to be met by the
program.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H68004D3588B4416ABEA875055B33831F"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 144
of such title is amended by inserting after the item relating to section 2433
the following new item:</text>
<quoted-block id="H8B96E180C81D4C4A849E7F14865BC62A" style="USC">
<toc>
<toc-entry idref="H9FF1EA42003B43D7840737F15126E664" level="section">2433a. Critical cost growth in major defense acquisition
programs.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H4FFE85B3AAA04B079924EE5273E10465"><enum>(3)</enum><header>Conforming
amendment</header><text>Paragraph (2) of section 2433(e) of such title 10 is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H11E0FE6696454693BC19EF50B27D9FD8" style="OLC">
<paragraph id="H56BDDF6CC0F84901AB71D2437391991D" indent="up1"><enum>(2)</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 shall take
actions consistent with the requirements of section 2433a of this
title.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H60DE7C1E3D9B49ACAED15304A4884D9F"><enum>(b)</enum><header>Treatment as
MDAP</header><text>Section 2430 of such title is amended—</text>
<paragraph id="HE2D004A7C2ED44469F0AAE2CC519720C"><enum>(1)</enum><text>in subsection
(a)(2), by inserting <quote>, including all planned increments or
spirals,</quote> after <quote>an eventual total expenditure for
procurement</quote>; and</text>
</paragraph><paragraph id="H959549F5BAE441FEA428E6944AD09F58"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H6C5BF9415234447D96D51DDEC27F3B6B" style="USC">
<subsection id="H5BDA5A6ADB054F54A95394AEE63AAB8C"><enum>(c)</enum><text display-inline="yes-display-inline">For purposes of subsection (a)(2), the
Secretary shall consider, as applicable, the following:</text>
<paragraph id="H6FC514AC4BC64E19B94B55D241A45BF1"><enum>(1)</enum><text>The estimated
level of resources required to fulfill the relevant joint military requirement,
as determined by the Joint Requirements Oversight Council pursuant to section
181 of this title.</text>
</paragraph><paragraph id="H9B0A76BE0ED74CC1BE19CDB606F9570D"><enum>(2)</enum><text>The cost estimate
referred to in section 2366a(a)(4) of this title.</text>
</paragraph><paragraph id="HF4AFD93198124C7AAABA885AE94EEE70"><enum>(3)</enum><text>The cost estimate
referred to in section 2366b(a)(1)(C) of this title.</text>
</paragraph><paragraph id="HA298098443A6486AA5E65690B71E3406"><enum>(4)</enum><text>The cost estimate
within a baseline description as required by section 2435 of this
title.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H1372C673F09C40508F9AB6572067487C"><enum>207.</enum><header>Organizational
conflicts of interest in major defense acquisition programs</header>
<subsection id="H321D433DEA9F47CEABF90F9D05B3DAA4"><enum>(a)</enum><header>Revised
regulations required</header><text>Not later than 270 days after the date of
the enactment of this Act, the Secretary of Defense shall revise the Defense
Supplement to the Federal Acquisition Regulation to provide uniform guidance
and tighten existing requirements for organizational conflicts of interest by
contractors in major defense acquisition programs.</text>
</subsection><subsection id="HD985C6A60F144CF9B181C368A979AA77"><enum>(b)</enum><header>Elements</header><text>The
revised regulations required by subsection (a) shall, at a minimum—</text>
<paragraph id="HD9E3D955FCE94796A94FB6BC0E76BA46"><enum>(1)</enum><text>address
organizational conflicts of interest that could arise as a result of—</text>
<subparagraph id="H9C41F1A9226949D5B43A56439F54A411"><enum>(A)</enum><text>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>
</subparagraph><subparagraph id="HD34D2872A5AC484DB6046ACB1972C6BA"><enum>(B)</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>
</subparagraph><subparagraph id="H520FB52375434C91B5BAC6B070BA099E"><enum>(C)</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; or</text>
</subparagraph><subparagraph id="H1234FD34FEF14227A8A57579D8905F84"><enum>(D)</enum><text>the performance
by, or assistance of, contractors in technical evaluations on major defense
acquisition programs;</text>
</subparagraph></paragraph><paragraph id="H4C802347507E4534853B9DE0C7BB926C"><enum>(2)</enum><text>ensure that the
Department of Defense receives advice on systems architecture and systems
engineering matters with respect to major defense acquisition programs from
federally funded research and development centers or other sources independent
of the prime contractor;</text>
</paragraph><paragraph id="H6E390ACA41D242D8B41E1F8C7AAE526F"><enum>(3)</enum><text>require that a
contract for the performance of systems engineering and technical assistance
functions for a major defense acquisition program contains a provision
prohibiting the contractor or any affiliate of the contractor from
participating as a prime contractor or a major subcontractor in the development
or construction of a weapon system under the program; and</text>
</paragraph><paragraph id="HB1A08F0200744CA2900D73BB23725D28"><enum>(4)</enum><text>establish such
limited exceptions to the requirement in paragraphs (2) and (3) as may be
necessary to ensure that the Department of Defense has continued access to
advice on systems architecture and systems engineering matters from
highly-qualified contractors with domain experience and expertise, while
ensuring that such advice comes from sources that are objective and
unbiased.</text>
</paragraph></subsection><subsection id="H7ECD6E738D8242C78646C3E3AA439578"><enum>(c)</enum><header>Consultation in
revision of regulations</header>
<paragraph id="H505954C10B854545B4F2C108674172EE"><enum>(1)</enum><header>Recommendations
of panel on contracting integrity</header><text>Not later than 90 days 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 major defense
acquisition programs.</text>
</paragraph><paragraph id="HD62FBBDF3B7644B58184EE34762EF89B"><enum>(2)</enum><header>Consideration of
recommendations</header><text>In developing the revised regulations required by
subsection (a), the Secretary shall consider the following:</text>
<subparagraph id="H5633627D20C64ADCBAA9DAE85B934465"><enum>(A)</enum><text>The
recommendations presented by the Panel on Contracting Integrity pursuant to
paragraph (1).</text>
</subparagraph><subparagraph id="HFEF65B8D38764689B8CBDFA98A073F65"><enum>(B)</enum><text>Any findings and
recommendations of the Administrator for Federal Procurement Policy and the
Director of the Office of Government Ethics pursuant to section 841(b) of the
Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public
Law 110–417; 122 Stat. 4539).</text>
</subparagraph></paragraph></subsection><subsection id="HBA7292374FAC439F85EC6010CEBE13FF"><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 is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE21326A7756443678C402BEB84DC1A0A" style="OLC">
<subsection id="H20E1A2F152254238829047AAA47E419C"><enum>(e)</enum><header>Termination</header>
<paragraph id="HB8A370FAAF1A49C5925873256766BB0A"><enum>(1)</enum><header>In
general</header><text>Subject to 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 mitigated.</text>
</paragraph><paragraph id="HD9447882B7224958BAF3A7F390584B62"><enum>(2)</enum><header>Minimum
continuing service</header><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><enum>III</enum><header>Additional
Acquisition Provisions</header>
<section id="H03D5D6162E244335A475F2DE70E6C649"><enum>301.</enum><header>Awards for
Department of Defense personnel for excellence in the acquisition of products
and services</header>
<subsection id="H50CC389B09A74B8882FF6DCBF2A0AD05"><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="H960EA04359EE421385695B7C3E8E63E0"><enum>(b)</enum><header>Elements</header><text>The
program required by subsection (a) shall include the following:</text>
<paragraph id="H5C92314410EE4415A66080DB4AB716DA"><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="H32AFBB506911413ABD8EA217BA83A18D"><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="H599140484F504E4F9FFFD09EB15762C0"><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="H56565E1D809C4963B913BC132C4D24BE"><enum>302.</enum><header>Earned value
management</header>
<subsection id="H7BA84ADD48F049EDB52236A415C594EE"><enum>(a)</enum><header>Modification of
elements in report on implementation</header><text>Subsection (a) of section
887 of the Duncan Hunter National Defense Authorization Act for Fiscal Year
2009 (Public Law 110–417; 122 Stat. 4562) is amended by striking paragraph (7)
and inserting the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HA13E045083274837B6408EB0377FA340" style="OLC">
<paragraph id="HC1E5E3582CCA48629465FBAFEBE73D75"><enum>(7)</enum><text>A discussion of
the methodology used to establish appropriate baselines for earned value
management at the award of a contract or commencement of a program, whichever
is earlier.</text>
</paragraph><paragraph id="HFCE1343A5F4644EC80BCA1EF3118BA5C"><enum>(8)</enum><text>A discussion of
the manner in which the Department ensures that personnel responsible for
administering and overseeing earned value management systems have the training
and qualifications needed to perform that responsibility.</text>
</paragraph><paragraph id="H451A9E3ABCDD4E2B82F02619C36125A0"><enum>(9)</enum><text>A discussion of
mechanisms to ensure that contractors establish and use approved earned value
management systems, including mechanisms such as the consideration of the
quality of contractor earned value management performance in past performance
evaluations.</text>
</paragraph><paragraph id="HB456E725AEDE49429798138A09D281E3"><enum>(10)</enum><text>Recommendations
for improving earned value management and its implementation within the
Department, including—</text>
<subparagraph id="H43684BDFCACF4027AFEE796DE302F659"><enum>(A)</enum><text>a discussion of
the merits of possible alternatives; and</text>
</subparagraph><subparagraph id="HADEDF01676754577A3447194F1D52E6E"><enum>(B)</enum><text>a plan for
implementing any improvements the Secretary determines to be
appropriate.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE8490C626FC34230B81A9E42B7730534"><enum>(b)</enum><header>Modification of
report date</header><text>Subsection (b) of such section is amended by striking
<quote>270 days after the date of the enactment of this Act</quote> and
inserting <quote>October 14, 2009</quote>.</text>
</subsection></section><section id="H8240A3A1765040F1A801A2B94B22251A"><enum>303.</enum><header>Expansion of
national security objectives of the national technology and industrial
base</header>
<subsection id="H6EAA88FE5CC64AFC88B61A25E793F2F0"><enum>(a)</enum><header>In
general</header><text>Section 2501(a) of title 10, United States Code, is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H6E8D087DCBA14CBCA380BEA9D8F3E88A" style="OLC">
<paragraph id="H4822E8EFB50D441290D860DD28F0DCDA"><enum>(6)</enum><text>Maintaining
critical design skills to ensure that the armed forces are provided with
systems capable of ensuring technological superiority over potential
adversaries.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H912DA82CD0F147CD9AB3B3F0EFA261AA"><enum>(b)</enum><header>Assessment of
effect of termination of major defense acquisition programs on technology and
industrial capabilities</header><text>Section 2505(b) of such title is
amended—</text>
<paragraph id="H7C978660435A4E0CAB0A45238E240B68"><enum>(1)</enum><text>in paragraph (2),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="H2CB5587C651E4756B7D211BE43AB17C1"><enum>(2)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="H701643FE367441D2A7A183F9635238F1"><enum>(3)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HFD8EC0C82B894378AF2CF28D8BC8BD3F" style="OLC">
<paragraph id="H6A1751B3E0244F4C97DC32702D8E97D7"><enum>(4)</enum><text>consider the
effects of the termination of major defense acquisition programs (as the term
is defined in section 2430 of this title) in the previous fiscal year on the
sectors and capabilities in the
assessment.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H35CC05521A644FE8BB56CABFB25188C2"><enum>304.</enum><header>Comptroller
General of the United States reports on costs and financial information
regarding major defense acquisition programs</header>
<subsection id="H97FEAEE6A6F445DAB2A3F9D0D897DF84"><enum>(a)</enum><header>Review of
operating and support costs of major weapon systems</header>
<paragraph id="H90D8DB2D95454B488B4C461688110417"><enum>(1)</enum><header>In
general</header><text>Not later than one year after the date of the enactment
of this Act, the Comptroller General of the United States shall submit to the
congressional defense committees a report on growth in operating and support
costs for major weapon systems.</text>
</paragraph><paragraph id="HCD23702783904EC2AA9F25AEA3FAA3FA"><enum>(2)</enum><header>Elements</header><text>In
preparing the report required by paragraph (1), the Comptroller General shall,
at a minimum—</text>
<subparagraph id="H5BD226984BC34C9CBE49F10BAC9A33D4"><enum>(A)</enum><text>identify the
original estimates for operating and support costs for major weapon systems
selected by the Comptroller General for purposes of the report;</text>
</subparagraph><subparagraph id="HA5F86704B0184C4A9446118D78622815"><enum>(B)</enum><text>assess the actual
operating and support costs for such major weapon systems;</text>
</subparagraph><subparagraph id="H560FCA8099664E7A8DD7D67CFC8FEA86"><enum>(C)</enum><text>analyze the rate
of growth for operating and support costs for such major weapon systems;</text>
</subparagraph><subparagraph id="H4170FDE2008549DAB36E7C444D4B0A75"><enum>(D)</enum><text>for such major
weapon systems that have experienced the highest rate of growth in operating
and support costs, assess the factors contributing to such growth;</text>
</subparagraph><subparagraph id="H5B7E90C6BCE847818A7FA796A898E378"><enum>(E)</enum><text>assess measures
taken by the Department of Defense to reduce operating and support costs for
major weapon systems; and</text>
</subparagraph><subparagraph id="H78A34CCEF7BA4A70A4D4A02973DAD6F0"><enum>(F)</enum><text>make such
recommendations as the Comptroller General considers appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H7E9FEF7C316E4656A1F9EA6452D3CEFB"><enum>(b)</enum><header>Review of
financial information relating to major defense acquisition programs</header>
<paragraph id="HFACE7BC47F344C039CE21E94D393464F"><enum>(1)</enum><header>Review</header><text>The
Comptroller General of the United States shall perform a review of weaknesses
in operations affecting the reliability of financial information on the systems
and assets to be acquired under major defense acquisition programs.</text>
</paragraph><paragraph id="HC5D500EA769F487B9C5F967FADFB92C5"><enum>(2)</enum><header>Elements</header><text>The
review required under paragraph (1) shall—</text>
<subparagraph id="HD52128ABA628492484AED81DE0966E2B"><enum>(A)</enum><text>identify any
weaknesses in operations under major defense acquisition programs that hinder
the capacity to assemble reliable financial information on the systems and
assets to be acquired under such programs in accordance with applicable
accounting standards;</text>
</subparagraph><subparagraph id="HECDA3A2ADECF448B80AEFF1F6AAAF181"><enum>(B)</enum><text>identify any
mechanisms developed by the Department of Defense to address weaknesses in
operations under major defense acquisition programs identified pursuant to
subparagraph (A); and</text>
</subparagraph><subparagraph id="HAA233BD307BA41DFB208E0670FD5A17A"><enum>(C)</enum><text>assess the
implementation of the mechanisms set forth pursuant to subparagraph (B),
including—</text>
<clause id="H8A044A782BF24B068A24FB2ABDBCEC7D"><enum>(i)</enum><text>the
actions taken, or planned to be taken, to implement such mechanisms;</text>
</clause><clause id="H04F2EBE047C04916A394588D8063AECD"><enum>(ii)</enum><text>the
schedule for carrying out such mechanisms; and</text>
</clause><clause id="HC5A1E100AA5F406A86EC228D5A4FAAA8"><enum>(iii)</enum><text>the metrics, if
any, instituted to assess progress in carrying out such mechanisms.</text>
</clause></subparagraph></paragraph><paragraph id="HE95BC45D693E4CBF81C0AF6046C29F70"><enum>(3)</enum><header>Consultation</header><text>In
performing the review required by paragraph (1), the Comptroller General shall
seek and consider input from each of the following:</text>
<subparagraph id="H600783998EC946C1B5012EA9C264F5EE"><enum>(A)</enum><text>The Chief
Management Officer of the Department of Defense.</text>
</subparagraph><subparagraph id="HD0E96AED0DD7485A8518CBACD511FF89"><enum>(B)</enum><text>The Chief
Management Officer of the Department of the Army.</text>
</subparagraph><subparagraph id="H680EA821321647A18655EDE6F7CCECFE"><enum>(C)</enum><text>The Chief
Management Officer of the Department of the Navy.</text>
</subparagraph><subparagraph id="H21FDEB14E7D441109000D64E35254890"><enum>(D)</enum><text>The Chief
Management Officer of the Department of the Air Force.</text>
</subparagraph></paragraph><paragraph id="H7A8414AC4265451EAD6572DFAF63B36E"><enum>(4)</enum><header>Report</header><text>Not
later than one year after the date of enactment of this Act, the Comptroller
General shall submit to the congressional defense committees a report on the
results of the review required by paragraph (1).</text>
</paragraph></subsection></section>
Speaker of the House of Representatives
Vice President of the United States and President of the
Senate