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<bill bill-stage="Engrossed-in-Senate" bill-type="olc" dms-id="A1" public-print="no" public-private="public" stage-count="1" star-print="no-star-print">
	<form display="yes">
		<congress display="yes">111th CONGRESS</congress>
		<session display="yes">1st Session</session>
		<legis-num display="yes">S. 454</legis-num>
		<current-chamber display="no">IN THE SENATE OF THE UNITED
		  STATES</current-chamber>
		<legis-type display="yes">AN ACT</legis-type>
		<official-title display="yes">To improve the organization and procedures
		  of the Department of Defense for the acquisition of major weapon systems, and
		  for other purposes.</official-title>
	</form>
	<legis-body display-enacting-clause="yes-display-enacting-clause" style="OLC">
		<section commented="no" display-inline="no-display-inline" id="id0ee3f0dd-c930-48a7-943e-0c53349e8720" section-type="section-one"><enum>1.</enum><header display-inline="yes-display-inline">Short title; table of contents</header>
			<subsection commented="no" display-inline="no-display-inline" id="id3d291f03-6a07-428c-bebd-a4685322eb42"><enum>(a)</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="yes-display-inline">This Act may be cited as the
			 <quote><short-title>Weapon Systems Acquisition Reform Act
			 of 2009</short-title></quote>.</text>
			</subsection><subsection commented="no" display-inline="no-display-inline" id="idecfadcb2-e8b0-4b7d-98c3-17de52a6b658"><enum>(b)</enum><header display-inline="yes-display-inline">Table of contents</header><text display-inline="yes-display-inline">The table of contents for this Act is as
			 follows:</text>
				<toc>
					<toc-entry bold="off" level="section">Sec. 1. Short title; table of
				contents.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 2.
				Definitions.</toc-entry>
					<toc-entry bold="off" level="title">TITLE I—Acquisition
				Organization</toc-entry>
					<toc-entry bold="off" level="section">Sec. 101. Reports on systems
				engineering capabilities of the Department of Defense.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 102. Director of
				Developmental Test and Evaluation.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 103. Assessment of
				technological maturity of critical technologies of major defense acquisition
				programs by the Director of Defense Research and Engineering.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 104. Director of
				Independent Cost Assessment.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 105. Role of the
				commanders of the combatant commands in identifying joint military
				requirements.</toc-entry>
					<toc-entry idref="idDD1CC93CE0754B70B4512C2413799B2D" level="section">Sec. 106. Clarification of submittal of certification of
				adequacy of budgets by the Director of the Department of Defense Test Resource
				Management Center.</toc-entry>
					<toc-entry bold="off" level="title">TITLE II—Acquisition
				Policy</toc-entry>
					<toc-entry bold="off" level="section">Sec. 201. Consideration of
				trade-offs among cost, schedule, and performance in the acquisition of major
				weapon systems.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 202. Preliminary design
				review and critical design review for major defense acquisition
				programs.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 203. Ensuring competition
				throughout the life cycle of major defense acquisition programs.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 204. Critical cost growth
				in major defense acquisition programs.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 205. Organizational
				conflicts of interest in the acquisition of major weapon systems.</toc-entry>
					<toc-entry bold="off" level="section">Sec. 206. Awards for Department
				of Defense personnel for excellence in the acquisition of products and
				services.</toc-entry>
					<toc-entry idref="IDe20c2bdc4ea64506a4cd0c0f18067920" level="section">Sec. 207. Earned Value Management.</toc-entry>
					<toc-entry idref="id6B190E104E2C4AE0B15390F5A8A98A84" level="section">Sec. 208. Expansion of national security objectives of the
				national technology and industrial base.</toc-entry>
					<toc-entry idref="ID54b5cd87bf1e422fad09a80ef18219ac" level="section">Sec. 209. Plan for elimination of weaknesses in operations that
				hinder capacity to assemble and assess reliable cost information on acquired
				assets under major defense acquisition programs.</toc-entry>
				</toc>
			</subsection></section><section commented="no" display-inline="no-display-inline" id="id75aab562-d740-403e-beb1-1d5d00b029b1" section-type="subsequent-section"><enum>2.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">In this Act:</text>
			<paragraph commented="no" display-inline="no-display-inline" id="id68613435B85E45C6877EF319EE4BE60E"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>congressional defense
			 committees</term> has the meaning given that term in section 101(a)(16) of
			 title 10, United States Code.</text>
			</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id686a84e3-584a-4976-b68d-8a5dd203cce2"><enum>(2)</enum><text display-inline="yes-display-inline">The term <term>major defense acquisition
			 program</term> has the meaning given that term in section 2430 of title 10,
			 United States Code.</text>
			</paragraph></section><title commented="no" id="id96e55219-7225-4af7-842b-66bdf4f21505" level-type="subsequent"><enum>I</enum><header display-inline="yes-display-inline">Acquisition Organization</header>
			<section commented="no" display-inline="no-display-inline" id="id1d0a095b-c673-4e3b-9b98-a3a5f5f9adf8" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Reports on systems engineering capabilities
			 of the Department of Defense</header>
				<subsection commented="no" display-inline="no-display-inline" id="idd8a3908e-6502-4448-991e-458a6b7b1284"><enum>(a)</enum><header display-inline="yes-display-inline">Reports by service acquisition
			 executives</header><text display-inline="yes-display-inline">Not later than 180
			 days after the date of the enactment of this Act, the service acquisition
			 executive of each military department shall submit to the Under Secretary of
			 Defense for Acquisition, Technology, and Logistics a report setting forth the
			 following:</text>
					<paragraph commented="no" display-inline="no-display-inline" id="idc731a045-f362-4d80-bf39-8233c4d72367"><enum>(1)</enum><text display-inline="yes-display-inline">A description of the extent to which such
			 military department has in place development planning organizations and
			 processes staffed by adequate numbers of personnel with appropriate training
			 and expertise to ensure that—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="id5e29a0a7-1d12-463b-890e-26e81f3b6301"><enum>(A)</enum><text display-inline="yes-display-inline">key requirements, acquisition, and budget
			 decisions made for each major weapon system prior to Milestones A and B are
			 supported by a rigorous systems analysis and systems engineering
			 process;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id68816aed-0466-4233-97ef-59aee6fc89fc"><enum>(B)</enum><text display-inline="yes-display-inline">the systems engineering strategy for each
			 major weapon system includes a robust program for improving reliability,
			 availability, maintainability, and sustainability as an integral part of design
			 and development; and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idbba9260e-c5eb-4eac-901e-66d1148f38ed"><enum>(C)</enum><text display-inline="yes-display-inline">systems engineering requirements, including
			 reliability, availability, maintainability, and sustainability requirements,
			 are identified during the Joint Capabilities Integration Development System
			 process and incorporated into contract requirements for each major weapon
			 system.</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id61e32608-6540-4db2-a89f-ee55c1827764"><enum>(2)</enum><text display-inline="yes-display-inline">A description of the actions that such
			 military department has taken, or plans to take, to—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="id2049c65c-aeb8-4642-9a3a-b024ea6f22fa"><enum>(A)</enum><text display-inline="yes-display-inline">establish needed development planning and
			 systems engineering organizations and processes; and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4b198ee3-be92-4594-96eb-44d44498933f"><enum>(B)</enum><text display-inline="yes-display-inline">attract, develop, retain, and reward
			 systems engineers with appropriate levels of hands-on experience and technical
			 expertise to meet the needs of such military department.</text>
						</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idb784a7b9-e723-4352-a072-06975796a0ea"><enum>(b)</enum><header display-inline="yes-display-inline">Report by Under Secretary of Defense for
			 Acquisition, Technology, and Logistics</header><text display-inline="yes-display-inline">Not later than 270 days after the date of
			 the enactment of this Act, the Under Secretary of Defense for Acquisition,
			 Technology, and Logistics shall submit to the Committee on Armed Services of
			 the Senate and the Committee on Armed Services of the House of Representatives
			 a report on the system engineering capabilities of the Department of Defense.
			 The report shall include, at a minimum, the following:</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id2cef59b2-117b-4126-ae19-f795482cf0f1"><enum>(1)</enum><text display-inline="yes-display-inline">An assessment by the Under Secretary of the
			 reports submitted by the service acquisition executives pursuant to subsection
			 (a) and of the adequacy of the actions that each military department has taken,
			 or plans to take, to meet the systems engineering and development planning
			 needs of such military department.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd4ed01e8-ec77-4f16-bc71-2411478fb76d"><enum>(2)</enum><text display-inline="yes-display-inline">An assessment of each of the
			 recommendations of the report on Pre-Milestone A and Early-Phase Systems
			 Engineering of the Air Force Studies Board of the National Research Council,
			 including the recommended checklist of systems engineering issues to be
			 addressed prior to Milestones A and B, and the extent to which such
			 recommendations should be implemented throughout the Department of
			 Defense.</text>
					</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idbe311f2f-e6b8-4e1b-b304-c9b7001eea38" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Director of Developmental Test and
			 Evaluation</header>
				<subsection commented="no" display-inline="no-display-inline" id="idaaf72490-513e-459b-90b3-6a4020300671"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of position</header>
					<paragraph commented="no" display-inline="no-display-inline" id="id50d1b83e-ab6c-40cb-80f9-2555742cbb31"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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="idf1c4e1ff-0047-4836-98ce-e4e38915b23d" style="USC">
							<section commented="no" display-inline="no-display-inline" id="id72e924f8-96b9-4c7f-8b10-d8e4f92c6f22" section-type="subsequent-section"><enum>139c.</enum><header display-inline="yes-display-inline">Director of Developmental Test and
				Evaluation</header>
								<subsection commented="no" display-inline="no-display-inline" id="id23378eb7-55ac-4548-a111-16bb30f31206"><enum>(a)</enum><text display-inline="yes-display-inline">There is a Director of Developmental Test
				and Evaluation, who shall be appointed by the Secretary of Defense from among
				individuals with an expertise in acquisition and testing.</text>
								</subsection><subsection commented="no" display-inline="no-display-inline" id="id974c9317-a3a9-4a63-86f3-9ec3791cf7f7"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idbb20d7cb-9651-494c-9602-aa6da6920d76"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of Developmental Test and
				Evaluation shall be the principal advisor to the Secretary of Defense and the
				Under Secretary of Defense for Acquisition, Technology, and Logistics on
				developmental test and evaluation in the Department of Defense.</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA7A8D2CB74CC4C138D922CF514107512" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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><paragraph commented="no" display-inline="no-display-inline" id="id3f626a9b-84a7-4899-a5d9-f5197b31968e" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id83AD5006312747D2A5A983D57D1FC70E" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id6C4394AF3F954E4D87494B5041F1E146"><enum>(A)</enum><text display-inline="yes-display-inline">The Under Secretary shall provide guidance
				to the Director 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 processes of the Department.</text>
										</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE69CF7BFDFCB49109CEB55D08A82E7F1" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The guidance under this paragraph shall
				ensure, at a minimum, that—</text>
											<clause commented="no" display-inline="no-display-inline" id="id8DE38581BE8C4B738F61C085C97204A1"><enum>(i)</enum><text display-inline="yes-display-inline">developmental test and evaluation
				requirements are fully integrated into the Systems Engineering Master Plan for
				each major defense acquisition program; and</text>
											</clause><clause commented="no" display-inline="no-display-inline" id="id97674B3A189B4E9AA66D0A75D7BF6854"><enum>(ii)</enum><text display-inline="yes-display-inline">systems engineering and development
				planning requirements are fully considered in the Test and Evaluation Master
				Plan for each major defense acquisition program.</text>
											</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ida905a1a4-d3fa-4bf3-a650-bb5363b021b1"><enum>(c)</enum><text display-inline="yes-display-inline">The Director of Developmental Test and
				Evaluation shall—</text>
									<paragraph commented="no" display-inline="no-display-inline" id="id5128a370-9d01-4ee2-b567-6700c0249559"><enum>(1)</enum><text display-inline="yes-display-inline">develop policies and guidance for the
				developmental test and evaluation activities of the Department of Defense
				(including integration and developmental testing of software);</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1f0024a6-2fa1-4aed-a333-f5149afbd21c"><enum>(2)</enum><text display-inline="yes-display-inline">monitor and review the developmental test
				and evaluation activities of the major defense acquisition programs and major
				automated information systems programs of the Department of Defense;</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idc54a0a8a-fb6e-4c97-8648-e00b7728e2b8"><enum>(3)</enum><text display-inline="yes-display-inline">review and approve the test and evaluation
				master plan for each major defense acquisition program of the Department of
				Defense;</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id448accab-5ea2-446e-bbd1-ee50845f8b5b"><enum>(4)</enum><text display-inline="yes-display-inline">supervise the activities of the Director of
				the Department of Defense Test Resource Management Center under section 196 of
				this title, or carry out such activities if serving concurrently as the
				Director of Developmental Test and Evaluation and the Director of the
				Department of Defense Test Resource Management Center under subsection
				(b)(2);</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idffcfae77-719f-48e8-b59f-8d9b5279a21a"><enum>(5)</enum><text display-inline="yes-display-inline">review the organizations and capabilities
				of the military departments with respect to developmental test and evaluation
				and identify needed changes or improvements to such organizations and
				capabilities; and</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id83e0176d-8a9c-451c-a8cb-9876c490a433"><enum>(6)</enum><text display-inline="yes-display-inline">perform such other activities relating to
				the developmental test and evaluation activities of the Department of Defense
				as the Under Secretary of Defense for Acquisition, Technology, and Logistics
				may prescribe.</text>
									</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idfeb42252-34fd-4a2f-827d-ee1d09ca7ca0"><enum>(d)</enum><text display-inline="yes-display-inline">The Director of Developmental Test and
				Evaluation shall have access to all records and data of the Department of
				Defense (including the records and data of each military department) that the
				Director considers necessary in order to carry out the Director's duties under
				this section.</text>
								</subsection><subsection commented="no" display-inline="no-display-inline" id="idc650ca71-e25a-4aba-9ca6-9ebbb65d2e05"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idEE39267F863C4370B54DBE2775DB68EE"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of Developmental Test and
				Evaluation shall submit to Congress each year a report on the developmental
				test and evaluation activities of the major defense acquisition programs and
				major automated information system programs of the of the Department of
				Defense. Each report shall include, at a minimum, the following:</text>
										<subparagraph commented="no" display-inline="no-display-inline" id="id3CB9B45224D94810AD1EE631600A4BCC" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">A
				discussion of any waivers to testing activities included in the Test and
				Evaluation Master Plan for a major defense acquisition program in the preceding
				year.</text>
										</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA1C81296DEDC47B28EE8CB704D303023" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">An
				assessment of the organization and capabilities of the Department of Defense
				for test and evaluation.</text>
										</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id76D10015C9264756803D180985003ED6" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary of Defense may include in any
				report submitted to Congress under this subsection such comments on such report
				as the Secretary considers
				appropriate.</text>
									</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1683697a-e30d-4a8c-9077-cc8de360ee67"><enum>(2)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="ida3387d60-d963-48e1-9c66-0293a4a7a915" style="USC">
							<toc>
								<toc-entry bold="off" level="section">139c. Director of Developmental
				Test and
				Evaluation.</toc-entry>
							</toc>
							<after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id273bf728-b5df-4c23-a8a7-7b1dc2942c5d"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
						<subparagraph commented="no" display-inline="no-display-inline" id="id36B2623C13544406B3564F4F6ED20439"><enum>(A)</enum><text display-inline="yes-display-inline">Section 196(f) of title 10, United States
			 Code, is amended by striking <quote>the Under Secretary of Defense for
			 Acquisition, Technology, and Logistics</quote> and all that follows and
			 inserting <quote>the Under Secretary of Defense for Acquisition, Technology,
			 and Logistics and the Director of Developmental Test and
			 Evaluation.</quote>.</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id79FEC3ACACE34A3980E5B6E4AF9BA8A2"><enum>(B)</enum><text display-inline="yes-display-inline">Section 139(b) of such title is
			 amended—</text>
							<clause commented="no" display-inline="no-display-inline" id="idB5CABDCC7F3A4D37896D7D08F138F53F"><enum>(i)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (4) through (6)
			 as paragraphs (5) through (7), respectively; and</text>
							</clause><clause commented="no" display-inline="no-display-inline" id="id4DF0C4265996402C998099018AB055DA"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting after paragraph (3) the
			 following new paragraph (4):</text>
								<quoted-block display-inline="no-display-inline" id="idCACDC207A7BD4B2B86CA23D046973E09" style="OLC">
									<paragraph commented="no" display-inline="no-display-inline" id="id9B2279EC1BB445FD9B0CDE3E2A7DB682"><enum>(4)</enum><text display-inline="yes-display-inline">review and approve the test and evaluation
				master plan for each major defense acquisition program of the Department of
				Defense;</text>
									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
							</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id41255093-116e-4dcd-987f-5025136bd9c2"><enum>(b)</enum><header display-inline="yes-display-inline">Reports on developmental testing
			 organizations and personnel</header>
					<paragraph commented="no" display-inline="no-display-inline" id="ida7365359-4ae3-4706-9921-2b58806cf980"><enum>(1)</enum><header display-inline="yes-display-inline">Reports by service acquisition
			 executives</header><text display-inline="yes-display-inline">Not later than 180
			 days after the date of the enactment of this Act, the service acquisition
			 executive of each military department shall submit to the Director of
			 Developmental Test and Evaluation a report on the extent to which the test
			 organizations of such military department have in place, or have effective
			 plans to develop, adequate numbers of personnel with appropriate expertise for
			 each purpose as follows:</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="id17b43a3d-c664-47fb-a3a4-d335492aaf07"><enum>(A)</enum><text display-inline="yes-display-inline">To ensure that testing requirements are
			 appropriately addressed in the translation of operational requirements into
			 contract specifications, in the source selection process, and in the
			 preparation of requests for proposals on all major defense acquisition
			 programs.</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4b921d56-9f89-4956-8fa2-65f1c20c42a0"><enum>(B)</enum><text display-inline="yes-display-inline">To participate in the planning of
			 developmental test and evaluation activities, including the preparation and
			 approval of a test and evaluation master plan for each major defense
			 acquisition program.</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7905fcb2-c0de-49d9-9fae-89118c44da9b"><enum>(C)</enum><text display-inline="yes-display-inline">To participate in and oversee the conduct
			 of developmental testing, the analysis of data, and the preparation of
			 evaluations and reports based on such testing.</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id467fe12c-ca29-45dc-8ecb-ede489cb962e"><enum>(2)</enum><header display-inline="yes-display-inline">First annual report by Director of
			 Developmental Test and Evaluation</header><text display-inline="yes-display-inline">The first annual report submitted to
			 Congress by the Director of Developmental Test and Evaluation under section
			 139c(e) of title 10, United States Code (as added by subsection (a)), shall be
			 submitted not later than one year after the date of the enactment of this Act,
			 and shall include an assessment by the Director of the reports submitted by the
			 service acquisition executives to the Director under paragraph (1).</text>
					</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id4dfdd848-2ee6-4734-a371-4830a7fb4346" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Assessment of technological maturity of
			 critical technologies of major defense acquisition programs by the Director of
			 Defense Research and Engineering</header>
				<subsection commented="no" display-inline="no-display-inline" id="idadf688e3-d1db-4b5e-8617-2dc4786f40a7"><enum>(a)</enum><header display-inline="yes-display-inline">Assessment by Director of Defense Research
			 and Engineering</header>
					<paragraph commented="no" display-inline="no-display-inline" id="idc9071371-869c-4c17-83e8-dbf9e19cd1c4"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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="idc5c15595-a3fd-45c5-a794-2c81bb630150" style="OLC">
							<subsection commented="no" display-inline="no-display-inline" id="id068d6b15-6283-45da-a82d-957eca7621a5"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id58fd067b-8808-4508-a5ae-74c34011cdf9"><enum>(1)</enum><text display-inline="yes-display-inline">The Director of Defense Research and
				Engineering shall, in consultation with the Director of Developmental Test and
				Evaluation, 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 commented="no" display-inline="no-display-inline" id="idf4d1e6b8-07d0-43ac-add3-b1299e2a1e22" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Director shall submit to the Secretary
				of Defense and to Congress each year a report on the technological maturity and
				integration risk of critical technologies of the major defense acquisition
				programs of the Department of
				Defense.</text>
								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id540bf89a-afb3-49a0-b862-d11bda209d7c"><enum>(2)</enum><header display-inline="yes-display-inline">First annual report</header><text display-inline="yes-display-inline">The first annual report under subsection
			 (c)(2) of section 139a of title 10, United States Code (as added by paragraph
			 (1)), shall be submitted to Congress not later than March 1, 2011, and shall
			 address the results of reviews and assessments conducted by the Director of
			 Defense Research and Engineering pursuant to subsection (c)(1) of such section
			 (as so added) during the preceding calendar year.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idfcb439fc-63d6-4b10-be65-6c55fc8cf455"><enum>(b)</enum><header display-inline="yes-display-inline">Report on resources for
			 implementation</header><text display-inline="yes-display-inline">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, including specialized workforce,
			 that may be required by the Director, and by other science and technology
			 elements of the Department of Defense, to carry out the following:</text>
					<paragraph commented="no" display-inline="no-display-inline" id="ide9126955-60e9-46de-996c-2cb0da03f099"><enum>(1)</enum><text display-inline="yes-display-inline">The requirements under the amendment made
			 by subsection (a).</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id46422348-b39d-4f31-85a5-85a695d238b5"><enum>(2)</enum><text display-inline="yes-display-inline">The technological maturity assessments
			 required by section 2366b(a) of title 10, United States Code, as amended by
			 section 202 of this Act.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id89261051-add0-4615-a39a-6896c90c2bf9"><enum>(3)</enum><text display-inline="yes-display-inline">The requirements of Department of Defense
			 Instruction 5000, as revised.</text>
					</paragraph></subsection><subsection id="id0094143A64AA4B8BA2F85802B64F2675"><enum>(c)</enum><header>Technological
			 maturity standards</header><text>For purposes of the review and assessment
			 conducted by the Director of Defense Research and Engineering in accordance
			 with subsection (c) of section 139a of title 10, United States Code (as added
			 by subsection (a)), a critical technology is considered to be mature—</text>
					<paragraph id="ID6275fbbb1ffc4521ad8a14623d7ef052"><enum>(1)</enum><text>in the case of a
			 major defense acquisition program that is being considered for Milestone B
			 approval, if the technology has been demonstrated in a relevant environment;
			 and</text>
					</paragraph><paragraph id="ID4b979d4520ac4dc688eb9c1603504846"><enum>(2)</enum><text>in the case of a
			 major defense acquisition program that is being considered for Milestone C
			 approval, if the technology has been demonstrated in a realistic
			 environment.</text>
					</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id43fb7294-31ce-4064-8fa3-2c6ea72c9e88" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Director of Independent Cost
			 Assessment</header>
				<subsection commented="no" display-inline="no-display-inline" id="id993be56c-ba90-4a29-b986-0b472e92ab86"><enum>(a)</enum><header display-inline="yes-display-inline">Director of Independent Cost
			 Assessment</header>
					<paragraph commented="no" display-inline="no-display-inline" id="ida0e5d8ba-9065-4335-b5d7-317bae827c78"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 4 of title 10, United States Code,
			 as amended by section 102 of this Act, is further amended by inserting after
			 section 139c the following new section:</text>
						<quoted-block display-inline="no-display-inline" id="idc98d1af0-6905-41b0-93fa-5158a9e912e6" style="USC">
							<section commented="no" display-inline="no-display-inline" id="id7211b2d9-0237-46dd-9247-919ca4f2f4af" section-type="subsequent-section"><enum>139d.</enum><header display-inline="yes-display-inline">Director of Independent Cost
				Assessment</header>
								<subsection commented="no" display-inline="no-display-inline" id="idf6f1f3a0-34f7-427a-a79e-6e70da351495"><enum>(a)</enum><text display-inline="yes-display-inline">There is a Director of Independent Cost
				Assessment in the Department of Defense, appointed by the President, by and
				with the advice and consent of the Senate. The Director shall be appointed
				without regard to political affiliation and solely on the basis of fitness to
				perform the duties of the Director.</text>
								</subsection><subsection commented="no" display-inline="no-display-inline" id="id0bd5039e-6d07-4398-94db-ed54b159c7f7"><enum>(b)</enum><text display-inline="yes-display-inline">The Director is the principal advisor to
				the Secretary of Defense, the Under Secretary of Defense for Acquisition,
				Technology, and Logistics, and the Under Secretary of Defense (Comptroller) on
				cost estimation and cost analyses for the acquisition programs of the
				Department of Defense and the principal cost estimation official within the
				senior management of the Department of Defense. The Director shall—</text>
									<paragraph commented="no" display-inline="no-display-inline" id="idf25d503d-6d1a-4346-8128-1af12df81543"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ida276c336-111e-4d4c-942f-84fec7827333"><enum>(2)</enum><text display-inline="yes-display-inline">provide guidance to and consult with the
				Secretary of Defense, the Under Secretary of Defense for Acquisition,
				Technology, and Logistics, the Under Secretary of Defense (Comptroller), and
				the Secretaries of the military departments with respect to cost estimation in
				the Department of Defense in general and with respect to specific cost
				estimates and cost analyses to be conducted in connection with a major defense
				acquisition program under chapter 144 of this title or a major automated
				information system program under chapter 144A of this title;</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf94ce26c-a201-4bb6-a7da-e90dd0fee839"><enum>(3)</enum><text display-inline="yes-display-inline">establish guidance on confidence levels for
				cost estimates on major defense acquisition programs, require that all such
				estimates include confidence levels compliant with such guidance, and require
				the disclosure of all such confidence levels (including through Selected
				Acquisition Reports submitted pursuant to section 2432 of this title);</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9d20fba4-dde0-40d7-b712-d57590f27e75"><enum>(4)</enum><text display-inline="yes-display-inline">monitor and review all cost estimates and
				cost analyses conducted in connection with major defense acquisition programs
				and major automated information system programs; and</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd7579b5d-3bcc-4b59-924a-6155555b820f"><enum>(5)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id9a4e5e4c-2a4f-45f3-9fb7-7956363a721c"><enum>(A)</enum><text display-inline="yes-display-inline">in advance of—</text>
											<clause commented="no" display-inline="no-display-inline" id="id73408474-b55e-427d-9f2c-f42059c21af4"><enum>(i)</enum><text display-inline="yes-display-inline">any certification under section 2366a or
				2366b of this title;</text>
											</clause><clause commented="no" display-inline="no-display-inline" id="id3fda2d36-d560-467f-a784-114f5c7d105e"><enum>(ii)</enum><text display-inline="yes-display-inline">any certification under section 2433(e)(2)
				of this title; and</text>
											</clause><clause commented="no" display-inline="no-display-inline" id="id390c373e-f325-4308-a5d4-6ee84af5dcf5"><enum>(iii)</enum><text display-inline="yes-display-inline">any report under section 2445c(f) of this
				title; and</text>
											</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida35c3cea-6ee2-46fc-9174-e5b929b1bd0c"><enum>(B)</enum><text display-inline="yes-display-inline">whenever necessary to ensure that an
				estimate or analysis under paragraph (4) is unbiased, fair, and
				reliable.</text>
										</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idfa2d2729-3b81-4d8d-be45-13af00021b94"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idd32edd15-ec7a-4609-b090-ebe13b0c3e76"><enum>(1)</enum><text display-inline="yes-display-inline">The Director may communicate views on
				matters within the responsibility of the Director directly to the Secretary of
				Defense and the Deputy Secretary of Defense without obtaining the approval or
				concurrence of any other official within the Department of Defense.</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idaf73a9fb-7e94-451e-beed-aab1e3da5dfc" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Director shall consult closely with,
				but the Director and the Director’s staff shall be independent of, the Under
				Secretary of Defense for Acquisition, Technology, and Logistics, the Under
				Secretary of Defense (Comptroller), and all other officers and entities of the
				Department of Defense responsible for acquisition and budgeting.</text>
									</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idef409822-4dd2-448a-b971-9da65106f948"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idc7428c09-42a1-4de1-965e-bdd66ac8f441"><enum>(1)</enum><text display-inline="yes-display-inline">The Secretary of a military department
				shall report promptly to the Director the results of all cost estimates and
				cost analyses conducted by the military department and all studies conducted by
				the military department in connection with cost estimates and cost analyses for
				major defense acquisition programs of the military department.</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9628f136-4283-455d-ad1d-050b520c77d8" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Director may make comments on cost
				estimates and cost analyses conducted by a military department for a major
				defense acquisition program, request changes in such cost estimates and cost
				analyses to ensure that they are fair and reliable, and develop or require the
				development of independent cost estimates or cost analyses for such program, as
				the Director determines to be appropriate.</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id78957b11-59e8-4a93-978c-eaf8d0c3beb7" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The Director shall have access to any
				records and data in the Department of Defense (including the records and data
				of each military department) that the Director considers necessary to review in
				order to carry out the Director's duties under this section.</text>
									</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idd7d17fdb-128e-47f0-b89e-2c2c78c2990e"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id72332e81-f047-49c5-ae4e-997d404857d6"><enum>(1)</enum><text display-inline="yes-display-inline">The Director shall prepare an annual report
				summarizing the cost estimation and cost analysis activities of the Department
				of Defense during the previous year and assessing the progress of the
				Department in improving the accuracy of its costs estimates and analyses. The
				report shall include an assessment of—</text>
										<subparagraph id="id5AA101888B14497E8FAB1E4934639554" indent="up1"><enum>(A)</enum><text>the extent to which each of the
				military departments have complied with policies, procedures, and guidance
				issued by the Director with regard to the preparation of cost estimates;
				and</text>
										</subparagraph><subparagraph id="IDd1aa1a98b9fb4592a6f3abd3af0faa79" indent="up1"><enum>(B)</enum><text>the overall quality of cost estimates
				prepared by each of the military departments.</text>
										</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1fb5d5c3-17ef-46b7-8881-ae73dd30dcb3" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Each report under this subsection shall be
				submitted concurrently to the Secretary of Defense, the Under Secretary of
				Defense for Acquisition, Technology, and Logistics, the Under Secretary of
				Defense (Comptroller), and Congress not later than 10 days after the
				transmission of the budget for the next fiscal year under section 1105 of title
				31. The Director shall ensure that a report submitted under this subsection
				does not include any information, such as proprietary or source selection
				sensitive information, that could undermine the integrity of the acquisition
				process. Each report submitted to Congress under this subsection shall be
				posted on an Internet website of the Department of Defense that is available to
				the public.</text>
									</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3d56accd-2112-476d-a6b2-ef827f76c8ee" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The Secretary may comment on any report of
				the Director to Congress under this subsection.</text>
									</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idda477d05-84c7-46cf-8032-d3f05ad4c6e0"><enum>(f)</enum><text display-inline="yes-display-inline">The President shall include in the budget
				transmitted to Congress pursuant to section 1105 of title 31 for each fiscal
				year a separate statement of estimated expenditures and proposed appropriations
				for that fiscal year for the Director of Independent Cost Assessment in
				carrying out the duties and responsibilities of the Director under this
				section.</text>
								</subsection><subsection commented="no" display-inline="no-display-inline" id="id1cfd0781-34c8-498c-ba20-2c2eeafa2a25"><enum>(g)</enum><text display-inline="yes-display-inline">The Secretary of Defense shall ensure that
				the Director has sufficient professional staff of military and civilian
				personnel to enable the Director to carry out the duties and responsibilities
				of the Director under this
				section.</text>
								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2fda592d-ab77-4748-87e3-cf6044bc3f31"><enum>(2)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections at the beginning of
			 chapter 4 of such title, as so amended, is further amended by inserting after
			 the item relating to section 139c the following new item:</text>
						<quoted-block display-inline="no-display-inline" id="id0075e1e9-ce34-4ea5-9c5f-295b9fd8bed7" style="USC">
							<toc>
								<toc-entry bold="off" level="section">139d. Director of Independent
				Cost
				Assessment.</toc-entry>
							</toc>
							<after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id22BE9587176541CCA27B643FDEEB38F0"><enum>(3)</enum><header display-inline="yes-display-inline">Executive Schedule Level IV</header><text display-inline="yes-display-inline">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="idEDB5F0390A804920A2AD465232AE9253" style="OLC">
							<paragraph commented="no" display-inline="no-display-inline" id="id31F441581E764F9E955D0AAD584EE780"><enum></enum><text display-inline="yes-display-inline">Director of Independent Cost Assessment,
				Defense of
				Defense.</text>
							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id205eae29-3722-43e4-be28-e28ae2ce9199"><enum>(b)</enum><header display-inline="yes-display-inline">Report on monitoring of operating and
			 support costs for MDAPs</header>
					<paragraph commented="no" display-inline="no-display-inline" id="idbef2d915-7e2f-44fe-8d84-4275da02fddb"><enum>(1)</enum><header display-inline="yes-display-inline">Report to Secretary of
			 Defense</header><text display-inline="yes-display-inline">Not later than one
			 year after the date of the enactment of this Act, the Director of Independent
			 Cost Assessment under section 139d of title 10 United States Code (as added by
			 subsection (a)), shall review existing systems and methods of the Department of
			 Defense for tracking and assessing operating and support costs on major defense
			 acquisition programs and submit to the Secretary of Defense a report on the
			 finding and recommendations of the Director as a result of the review,
			 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="ided6e2c7f-8486-4a80-8aa2-2da7703b9bdd"><enum>(2)</enum><header>Transmittal
			 to Congress</header><text>Not later than 30 days after receiving the report
			 required by paragraph (1), the Secretary shall transmit the report to the
			 congressional defense committees, together with any comments on the report the
			 Secretary considers appropriate.</text>
					</paragraph></subsection><subsection id="id80561f59-2995-4bce-9a70-2f3dfe67a05d"><enum>(c)</enum><header>Transfer of
			 personnel and functions of Cost Analysis Improvement Group</header><text>The
			 personnel and functions of the Cost Analysis Improvement Group of the
			 Department of Defense are hereby transferred to the Director of Independent
			 Cost Assessment under section 139d of title 10, United States Code (as so
			 added), and shall report directly to the Director.</text>
				</subsection><subsection id="id12b8d1d2-46e5-4a4a-a977-56d47540c5dc"><enum>(d)</enum><header>Conforming
			 amendments</header>
					<paragraph id="id3361FE8123FE491CAD9BE11641A9AAC4"><enum>(1)</enum><text>Section 181(d) of
			 title 10, United States Code, is amended by inserting <quote>the Director of
			 Independent Cost Assessment,</quote> before <quote>and the
			 Director</quote>.</text>
					</paragraph><paragraph id="id0eb65daa-0185-4206-9dcb-b90693ffa06d"><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 Independent Cost Assessment</quote>.</text>
					</paragraph><paragraph id="id1054faa6-12ab-4765-9fa0-833ed0a73674"><enum>(3)</enum><text>Section
			 2366a(a)(4) of such title is amended by striking “has been submitted” and
			 inserting <quote>has been approved by the Director of Independent Cost
			 Assessment</quote>.</text>
					</paragraph><paragraph id="idb61c95e2-c9e2-4b9d-b715-6a2548095de7"><enum>(4)</enum><text>Section
			 2366b(a)(1)(C) of such title is amended by striking <quote>have been developed
			 to execute</quote> and inserting <quote>have been approved by the Director of
			 Independent Cost Assessment to provide for the execution of</quote>.</text>
					</paragraph><paragraph id="id8f2c25b5-c0fd-400c-aef0-6e005bee3c25"><enum>(5)</enum><text>Section
			 2433(e)(2)(B)(iii) of such title is amended by striking <quote>are
			 reasonable</quote> and inserting <quote>have been determined by the Director of
			 Independent Cost Assessment to be reasonable</quote>.</text>
					</paragraph><paragraph id="id06faa564-beea-4bdf-8cd5-99af75d8ece9"><enum>(6)</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="ide88aff78-3b0c-4184-a1ce-5477f7597005" style="OLC">
							<subparagraph id="id835871b9-3aac-41a6-a200-db7017c791b0"><enum>(A)</enum><text>be prepared
				or approved by the Director of Independent Cost Assessment;
				and</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id65618293-0624-422a-8fae-a55646db4c28"><enum>(7)</enum><text>Section
			 2445c(f)(3) of such title is amended by striking <quote>are reasonable</quote>
			 and inserting <quote>have been determined by the Director of Independent Cost
			 Assessment to be reasonable</quote>.</text>
					</paragraph></subsection><subsection id="id30F235198C4A474699EDDFB3FA34C031"><enum>(e)</enum><header>Comptroller
			 General of the United States review of operating and support costs of major
			 weapon systems</header>
					<paragraph id="id626A51789848440099549B959385A4EF"><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="idECC796DA29BC4F40BC08961591CCC5ED"><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="id4AE612DBCB9F4484B5C20F9E7A90A753"><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="id1E6BF108FDE44ADBB5B65B9B03DE7D6C"><enum>(B)</enum><text>assess the actual
			 operating and support costs for such major weapon systems;</text>
						</subparagraph><subparagraph id="id4AB748E2616D4168BD981E90ED4F1A01"><enum>(C)</enum><text>analyze the rate
			 of growth for operating and support costs for such major weapon systems;</text>
						</subparagraph><subparagraph id="id7094432C07754EBE80D5AF382431B1DE"><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="id3EB6E4736A5D4EEB8B803FE11F305A44"><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="id8F3DA1663FE54437BCBC29FC599016DE"><enum>(F)</enum><text>make such
			 recommendations as the Comptroller General considers appropriate.</text>
						</subparagraph></paragraph><paragraph id="id087CCF6E6C6A4E079C8DFEB72303CF65"><enum>(3)</enum><header>Major weapon
			 system defined</header><text>In this subsection, the term <term>major weapon
			 system</term> has the meaning given that term in 2379(d) of title 10, United
			 States Code.</text>
					</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id26a0c937-8d94-48ca-bb5b-982f0deb63fa" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Role of the commanders of the combatant
			 commands in identifying joint military requirements</header>
				<subsection commented="no" display-inline="no-display-inline" id="idA6695A613C5F4A1FB887DB386D2B0BC8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text>Section 181 of
			 title 10, United States Code, as amended by section 104(d)(1) of this Act, is
			 further amended—</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id5723DC13DD29465A92514E220BEC80F2"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (e), (f), and
			 (g) as subsections (f), (g), and (h), respectively; and</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id82D04BD91D4F4ABE84370FAFAE840F03"><enum>(2)</enum><text display-inline="yes-display-inline">by adding after subsection (d) the
			 following new subsection (e):</text>
						<quoted-block display-inline="no-display-inline" id="idedaf9c35-3509-4de8-83f8-37dba0ea5af4" style="OLC">
							<subsection commented="no" display-inline="no-display-inline" id="id7c5c0cb6-020f-4375-9a99-ca6135acd947"><enum>(e)</enum><header display-inline="yes-display-inline">Input from combatant commanders on joint
				military requirements</header><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 (f). Such input may include, but is not limited to, an assessment of
				the following:</text>
								<paragraph id="id1D1DA493E2B84DE5B54D5929F9954C08"><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 justify a new joint military requirement.</text>
								</paragraph><paragraph id="ID4324ea71b1dd41a9b6b0bc73315f2915"><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="ID0932db1f968c4423a467f2e9391b9f6a"><enum>(3)</enum><text>The relative
				priority of a proposed joint military requirement in comparison with other
				joint military requirements.</text>
								</paragraph><paragraph id="idFAA58F5739D34DCE83CA1F81C3B7F0DF"><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 to partner in
				using technologies developed to meet the joint military
				requirement.</text>
								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="id72538540BDFF4BE88DE2EA5B113A76B4"><enum>(b)</enum><header>Comptroller
			 General of the United States review of implementation</header><text>Not later
			 than two years after the date of the enactment of this Act, the Comptroller
			 General of the United States shall submit to the Committees on Armed Services
			 of the Senate and the House of Representatives a report on the implementation
			 of the requirements of subsection (e) 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. The report shall include, at a minimum, an assessment of the extent
			 to which the Council has effectively sought, and the commanders of the
			 combatant commands have provided, meaningful input on proposed joint military
			 requirements.</text>
				</subsection></section><section id="idDD1CC93CE0754B70B4512C2413799B2D"><enum>106.</enum><header>Clarification
			 of submittal of certification of adequacy of budgets by the Director of the
			 Department of Defense Test Resource Management Center</header><text display-inline="no-display-inline">Section 196(e)(2) of title 10, United States
			 Code, is amended—</text>
				<paragraph id="id603598884759477DB49AF67912F123A2"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (B) as
			 subparagraph (C); and</text>
				</paragraph><paragraph id="id318B698AF9234D0D808A839B34E44F5B"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (A) the
			 following new subparagraph (B):</text>
					<quoted-block display-inline="no-display-inline" id="idE6F598C2452E48A49756EB5357AF1DED" style="OLC">
						<subparagraph id="id022E94BE2ADE42A3942297E134AC1133" indent="up2"><enum>(B)</enum><text>If the Director of the Center is not
				serving concurrently as the Director of Developmental Test and Evaluation under
				subsection (b)(2) of section 139c of this title, the certification of the
				Director of the Center under subparagraph (A) shall, notwithstanding subsection
				(c)(4) of such section, be submitted directly and independently to the
				Secretary of
				Defense.</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section></title><title commented="no" id="id6fbcad6f-62e9-4863-bc02-f0161a01b4ad" level-type="subsequent"><enum>II</enum><header display-inline="yes-display-inline">Acquisition Policy</header>
			<section commented="no" display-inline="no-display-inline" id="id61d10962-485e-4d9f-950c-ef50253fece7" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Consideration of trade-offs among cost,
			 schedule, and performance in the acquisition of major weapon systems</header>
				<subsection commented="no" display-inline="no-display-inline" id="id5c39226a-ad77-4c29-98b8-d683bf35534a"><enum>(a)</enum><header display-inline="yes-display-inline">Consideration of trade-offs</header>
					<paragraph commented="no" display-inline="no-display-inline" id="id21e50df4-5e9d-481d-85d9-c2833d353c73"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary of Defense shall develop and
			 implement mechanisms to ensure that trade-offs between cost, schedule, and
			 performance are considered as part of the process for developing requirements
			 for major weapon systems.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb6c7680c-279e-46d2-a561-c2e9cccb3ed7"><enum>(2)</enum><header display-inline="yes-display-inline">Elements</header><text display-inline="yes-display-inline">The mechanisms required under this
			 subsection shall ensure, at a minimum, that—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="id8517ad14-e0f7-445e-8843-d9376b8ef1a9"><enum>(A)</enum><text display-inline="yes-display-inline">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 requirements are established for major weapon
			 systems; and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id01bf3fac-0eb3-4df9-804f-ae74fdb9ec87"><enum>(B)</enum><text display-inline="yes-display-inline">consideration is given to fielding major
			 weapon systems through incremental or spiral acquisition, while deferring
			 technologies that are not yet mature, and capabilities that are likely to
			 significantly increase costs or delay production, until later increments or
			 spirals.</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idf5d3ef80-ae45-465a-b6b6-9d68294f06cf"><enum>(3)</enum><header display-inline="yes-display-inline">Major weapons system defined</header><text display-inline="yes-display-inline">In this subsection, the term <term>major
			 weapon system</term> has the meaning given that term in section 2379(d) of
			 title 10, United States Code.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7ce60077-c92e-4cc6-9d83-0a16f1ec4fcb"><enum>(b)</enum><header display-inline="yes-display-inline">Duties of Joint Requirements Oversight
			 Council</header><text display-inline="yes-display-inline">Section 181(b)(1) of
			 title 10, United States Code, is amended—</text>
					<paragraph commented="no" display-inline="no-display-inline" id="iddd0dec67-2260-4c3e-9832-3e54c476864b"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
			 <quote>and</quote> at the end;</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id04d6e850-d73e-4832-af18-66ef63b29fed"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking the period
			 at the end and inserting <quote>; and</quote>; and</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id63ec548c-4306-44e5-8516-8651deacd92e"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
			 subparagraph:</text>
						<quoted-block display-inline="no-display-inline" id="idbe29cc70-98a2-4519-992d-6bf75258416b" style="OLC">
							<subparagraph commented="no" display-inline="no-display-inline" id="idfe095c22-cde4-4327-8b0c-895ef25ede63"><enum>(C)</enum><text display-inline="yes-display-inline">in ensuring the consideration of trade-offs
				among cost, schedule and performance for joint military requirements in
				consultation with the advisors specified in subsection
				(d);</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="id056807AC33754995AAB43A69A2F43C39"><enum>(c)</enum><header>Review of joint
			 military requirements</header>
					<paragraph id="idF1F840D366544765978DFB92D7974FF0"><enum>(1)</enum><header>JROC submittal
			 of recommended requirements to Under Secretary for ATL</header><text>Upon
			 recommending a new joint military requirement, the Joint Requirements Oversight
			 Council shall transmit the recommendation to the Under Secretary of Defense for
			 Acquisition, Technology, and Logistics for review and concurrence or
			 non-concurrence in the recommendation.</text>
					</paragraph><paragraph id="idA1F0B57E82604D608CB1F1AC0B92DCBD"><enum>(2)</enum><header>Review of
			 recommended requirements</header><text>The Under Secretary for Acquisition,
			 Technology, and Logistics shall review each recommendation transmitted under
			 paragraph (1) to determine whether or not the Joint Requirements Oversight
			 Council has, in making such recommendation—</text>
						<subparagraph id="id1A1BA6BB505A47D9A3B1A2ADF957D753"><enum>(A)</enum><text>taken appropriate
			 action to solicit and consider input from the commanders of the combatant
			 commands in accordance with the requirements of section 181(e) of title 10,
			 United States Code (as amended by section 105);</text>
						</subparagraph><subparagraph id="id107EBB6CBCCD465593992A5C011F2148"><enum>(B)</enum><text>given appropriate
			 consideration to trade-offs among cost, schedule, and performance in accordance
			 with the requirements of section 181(b)(1)(C) of title 10, United States Code
			 (as amended by subsection (b)); and</text>
						</subparagraph><subparagraph id="idFE9807533DC5449EB20E55458684820A"><enum>(C)</enum><text>given appropriate
			 consideration to issues of joint portfolio management, including alternative
			 material and non-material solutions, as provided in Chairman of the Joint
			 Chiefs of Staff Instruction 3170.01G.</text>
						</subparagraph></paragraph><paragraph id="id4CFDAAF56DFF4427B2698C5C7AC98B86"><enum>(3)</enum><header>Non-concurrence
			 of Under Secretary for ATL</header><text>If the Under Secretary for
			 Acquisition, Technology, and Logistics determines that the Joint Requirements
			 Oversight Council has failed to take appropriate action in accordance with
			 subparagraphs (A), (B), and (C) of paragraph (2) regarding a joint military
			 requirement, the Under Secretary shall return the recommendation to the Council
			 with specific recommendations as to matters to be considered by the Council to
			 address any shortcoming identified by the Under Secretary in the course of the
			 review under paragraph (2).</text>
					</paragraph><paragraph id="id350A5540E9CC4DE5BD73A5C1634A5C99"><enum>(4)</enum><header>Notice on
			 continuing disagreement on requirement</header><text>If the Under Secretary for
			 Acquisition, Technology, and Logistics and the Joint Requirements Oversight
			 Council are unable to reach agreement on a joint military requirement that has
			 been returned to the Council by the Under Secretary under paragraph (4), the
			 Under Secretary shall transmit notice of lack of agreement on the requirement
			 to the Secretary of Defense.</text>
					</paragraph><paragraph id="id3B750C9C3F3D4EAC89E6875200D70C72"><enum>(5)</enum><header>Resolution of
			 continuing disagreement</header><text>Upon receiving notice under paragraph (4)
			 of a lack of agreement on a joint military requirement, the Secretary of
			 Defense shall make a final determination on whether or not to validate the
			 requirement.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE9E71B72B0D54E97BD70FF3CE227D0ED"><enum>(d)</enum><header display-inline="yes-display-inline">Analysis of alternatives</header>
					<paragraph commented="no" display-inline="no-display-inline" id="id97D1647E2F764ADFACE9F716F944C561"><enum>(1)</enum><header display-inline="yes-display-inline">Requirement at material solution analysis
			 phase</header><text display-inline="yes-display-inline">The Under Secretary of
			 Defense for Acquisition, Technology, and Logistics shall ensure that Department
			 of Defense guidance on major defense acquisition programs requires the
			 Milestone Decision Authority to conduct an analysis of alternatives (AOA)
			 during the Material Solution Analysis Phase of each major defense acquisition
			 program.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA16DC75A3C454725A376DDB28D87EFA8"><enum>(2)</enum><header display-inline="yes-display-inline">Elements</header><text display-inline="yes-display-inline">Each analysis of alternatives under
			 paragraph (1) shall, at a minimum—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="idDC3CEAC1FAFD4C14B0A28B0635841CBC"><enum>(A)</enum><text display-inline="yes-display-inline">solicit and consider alternative approaches
			 proposed by the military departments and Defense Agencies to meet joint
			 military requirements; and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id10B74C00BB29451993A1883B3E2BF4DC"><enum>(B)</enum><text display-inline="yes-display-inline">give full consideration to possible
			 trade-offs between cost, schedule, and performance for each of the alternatives
			 so considered.</text>
						</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id273E56FFE2684FD683C8000C0EDEC6BC"><enum>(e)</enum><header display-inline="yes-display-inline">Duties of Milestone Decision
			 Authority</header><text display-inline="yes-display-inline">Section
			 2366b(a)(1)(B) of title 10, United States Code, is amended by inserting
			 <quote>appropriate trade-offs between cost, schedule, and performance have been
			 made to ensure that</quote> before <quote>the program is
			 affordable</quote>.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="id5a9f0216-6e8e-4ba2-b438-34482c2df428" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Preliminary design review and critical
			 design review for major defense acquisition programs</header>
				<subsection commented="no" display-inline="no-display-inline" id="id23D1635FEAB94DEB88F23A97AD077ECC"><enum>(a)</enum><header display-inline="yes-display-inline">Preliminary design review</header><text display-inline="yes-display-inline">Section 2366b(a) of title 10, United States
			 Code, as amended by section 201(d) of this Act, is further amended—</text>
					<paragraph commented="no" display-inline="no-display-inline" id="idd1b12dad-0d24-489a-93a9-01cbcb3b695e"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
			 <quote>and</quote> at the end;</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2aeb88eb-af80-40af-a75f-3b93ef6819ca"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (2) as paragraph
			 (3);</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idc58ee733-812b-4dd9-adfd-ea162ab4fe0a"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1) the
			 following new paragraph (2):</text>
						<quoted-block display-inline="no-display-inline" id="id67e77684-03d5-4a8e-bd19-44dd2a425ffc" style="OLC">
							<paragraph commented="no" display-inline="no-display-inline" id="id892939a3-4f8f-4c38-8524-79388caa0495"><enum>(2)</enum><text display-inline="yes-display-inline">has received a preliminary design review
				(PDR) and conducted a formal post-preliminary design review assessment, and
				certifies on the basis of such assessment that the program demonstrates a high
				likelihood of accomplishing its intended mission;
				and</text>
							</paragraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide06e8f31-ac55-4555-b9e1-0ba24e71a751"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (3), as redesignated by
			 paragraph (2) of this section—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="id1babb9fa-048c-42ac-ae66-0a33b2ddaeb8"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking the
			 semicolon and inserting <quote>, as determined by the Milestone Decision
			 Authority on the basis of an independent review and assessment by the Director
			 of Defense Research and Engineering; and</quote>;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf03c1372-e64d-4320-b200-0e54ba15a9b1"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (E); and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb0f6ddc2-2b65-41db-928e-23af9c1e58ce"><enum>(C)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (F) as
			 subparagraph (E).</text>
						</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id08ED74CFEFB6425AB01D72F515307D52"><enum>(b)</enum><header display-inline="yes-display-inline">Critical design review</header><text display-inline="yes-display-inline">The Under Secretary of Defense for
			 Acquisition, Technology, and Logistics shall ensure that Department of Defense
			 guidance on major defense acquisition programs requires a critical design
			 review and a formal post-critical design review assessment for each major
			 defense acquisition program to ensure that such program has attained an
			 appropriate level of design maturity before such program is approved for System
			 Capability and Manufacturing Process Development.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="id1db167cb-dc18-4281-ac0d-eca49a85f2bc" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Ensuring competition throughout the life
			 cycle of major defense acquisition programs</header>
				<subsection commented="no" display-inline="no-display-inline" id="id921c173f-bd40-4796-bbae-b3f5b7ee2ab3"><enum>(a)</enum><header display-inline="yes-display-inline">Ensuring competition</header><text display-inline="yes-display-inline">The Secretary of Defense shall ensure that
			 the acquisition plan for each major defense acquisition program includes
			 measures to ensure competition, or the option of competition, at both the prime
			 contract level and the subcontract level of such program throughout the life
			 cycle of such program as a means to incentivize contractor performance.</text>
				</subsection><subsection commented="no" display-inline="no-display-inline" id="id2c527484-f31b-4104-b4ed-643ee42e19b3"><enum>(b)</enum><header display-inline="yes-display-inline">Measures To ensure
			 competition</header><text display-inline="yes-display-inline">The measures to
			 ensure competition, or the option of competition, utilized for purposes of
			 subsection (a) may include, but are not limited to, measures to achieve the
			 following, in appropriate cases where such measures are cost-effective:</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id9d80160b-6461-480b-96e8-4bf7a61cef03"><enum>(1)</enum><text display-inline="yes-display-inline">Competitive prototyping.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8e8ceba8-2db5-4bb7-8eb5-0f42a175650d"><enum>(2)</enum><text display-inline="yes-display-inline">Dual-sourcing.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id352ad730-3447-45fa-8bc2-92cd819bf0c9"><enum>(3)</enum><text display-inline="yes-display-inline">Funding of a second source for
			 interchangeable, next-generation prototype systems or subsystems.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idad88111b-f41d-4fce-92e5-c85107def7dc"><enum>(4)</enum><text display-inline="yes-display-inline">Utilization of modular, open architectures
			 to enable competition for upgrades.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id81c5c46c-135d-4d44-bf68-caaa3b3b127a"><enum>(5)</enum><text display-inline="yes-display-inline">Periodic competitions for subsystem
			 upgrades.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9078809d-5249-4f85-a27d-b937ce8eb6e5"><enum>(6)</enum><text display-inline="yes-display-inline">Licensing of additional suppliers.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb44e483d-dfa5-41ef-9a78-24e984022954"><enum>(7)</enum><text display-inline="yes-display-inline">Requirements for Government oversight or
			 approval of make or buy decisions to ensure competition at the subsystem
			 level.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id790f001c-b258-474a-b0f9-cc929e1dd507"><enum>(8)</enum><text display-inline="yes-display-inline">Periodic system or program reviews to
			 address long-term competitive effects of program decisions.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id88223513-1be1-4852-8406-5ca6c494e882"><enum>(9)</enum><text display-inline="yes-display-inline">Consideration of competition at the
			 subcontract level and in make or buy decisions as a factor in proposal
			 evaluations.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idc300de82-8158-4f15-9fc3-170011716a38"><enum>(c)</enum><header display-inline="yes-display-inline">Competitive prototyping</header><text display-inline="yes-display-inline">The Secretary of Defense shall modify the
			 acquisition regulations of the Department of Defense to ensure with respect to
			 competitive prototyping for major defense acquisition programs the
			 following:</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id8320bedd-3408-443c-bb71-f99c9933b1e4"><enum>(1)</enum><text display-inline="yes-display-inline">That the acquisition strategy for each
			 major defense acquisition program provides for two or more competing teams to
			 produce prototypes before Milestone B approval (or Key Decision Point B
			 approval in the case of a space program) unless the milestone decision
			 authority for such program waives the requirement on the basis of a
			 determination that—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="idD34F7F0834D348A7A48644A47E45C354"><enum>(A)</enum><text display-inline="yes-display-inline">but for such waiver, the Department would
			 be unable to meet critical national security objectives; or</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA9604334244241EF9A1BAE604EB34479"><enum>(B)</enum><text display-inline="yes-display-inline">the cost of producing competitive
			 prototypes exceeds the potential life-cycle benefits of such competition,
			 including the benefits of improved performance and increased technological and
			 design maturity that may be achieved through prototyping.</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1437cb23-5271-43bb-8a6d-9e40f26736d6"><enum>(2)</enum><text display-inline="yes-display-inline">That if the milestone decision authority
			 waives the requirement for prototypes produced by two or more teams for a major
			 defense acquisition program under paragraph (1), the acquisition strategy for
			 the program provides for the production of at least one prototype before
			 Milestone B approval (or Key Decision Point B approval in the case of a space
			 program) unless the milestone decision authority waives such requirement on the
			 basis of a determination that—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="id8582F1E10B8E4517AB616D315C63A74D"><enum>(A)</enum><text display-inline="yes-display-inline">but for such waiver, the Department would
			 be unable to meet critical national security objectives; or</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC41E63DC57DB49E5A185E5CB7830D73F"><enum>(B)</enum><text display-inline="yes-display-inline">the cost of producing a prototype exceeds
			 the potential life-cycle benefits of such prototyping, including the benefits
			 of improved performance and increased technological and design maturity that
			 may be achieved through prototyping.</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id34e8552b-5f33-43dc-8247-9ef35fb031fa"><enum>(3)</enum><text display-inline="yes-display-inline">That whenever a milestone decision
			 authority authorizes a waiver under paragraph (1) or (2), the waiver, the
			 determination upon which the waiver is based, and the reasons for the
			 determination are submitted in writing to the congressional defense committees
			 not later than 30 days after the waiver is authorized.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3C591C605BBC4552B500B4978FE9D746"><enum>(4)</enum><text display-inline="yes-display-inline">That prototypes may be required under
			 paragraph (1) or (2) 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="id4BE6AAFA680143E7AE18CB1CAC5F812E"><enum>(d)</enum><header>Comptroller
			 General of the United States review of certain waivers</header>
					<paragraph id="id0D939E0454E944FEA9E39CBBFA390E4C"><enum>(1)</enum><header>Notice to
			 comptroller general</header><text>Whenever a milestone decision authority
			 authorizes a waiver of the requirement for prototypes under paragraph (1) or
			 (2) of subsection (c) on the basis of excessive cost, the milestone decision
			 authority shall submit a notice on the waiver, together with the rational for
			 the waiver, to the Comptroller General of the United States at the same time a
			 report on the waiver is submitted to the congressional defense committees under
			 paragraph (3) of that subsection.</text>
					</paragraph><paragraph id="idDEFAC964F98F497E8CB84BDB49F3C8A5"><enum>(2)</enum><header>Comptroller
			 general review</header><text>Not later than 60 days after receipt of a notice
			 on a waiver under paragraph (1), the Comptroller General shall—</text>
						<subparagraph id="idD6DB34B8C94B44A5B1009ECF12688FB8"><enum>(A)</enum><text>review the
			 rationale for the waiver; and</text>
						</subparagraph><subparagraph id="idBBF78E64BEFE41BFA54DFEAEE426145A"><enum>(B)</enum><text>submit to the
			 congressional defense committees a written assessment of the rationale for the
			 waiver.</text>
						</subparagraph></paragraph></subsection><subsection id="idEA12DCB6440B4E739C69425CC7257490"><enum>(e)</enum><header>Applicability</header><text>This
			 section shall apply to any acquisition plan for a major defense acquisition
			 program that is developed or revised on or after the date that is 60 days after
			 the date of the enactment of this Act.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="ide64a9f2c-8dbd-4d14-bd23-6a9cd5cd50b2" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Critical cost growth in major defense
			 acquisition programs</header>
				<subsection commented="no" display-inline="no-display-inline" id="id2c5780aa-6bfa-4f6a-846b-10f02c40c166"><enum>(a)</enum><header display-inline="yes-display-inline">Authorized actions in event of critical
			 cost growth</header><text display-inline="yes-display-inline">Section
			 2433(e)(2) of title 10, United States Code, is amended—</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id9c97b89e-e6c9-4227-9716-fa16c5eb3a18"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (C) as
			 subparagraph (E);</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idac8f491c-4b1f-4d1a-8174-2c393d9a6084"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subparagraph (B); and</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idaa40328f-b542-4814-b471-332a60e157d5"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (A) the
			 following new subparagraphs (B), (C), and (D):</text>
						<quoted-block display-inline="no-display-inline" id="id8a760b37-abfd-4d9b-ba5e-efcbe9069d93" style="OLC">
							<subparagraph commented="no" display-inline="no-display-inline" id="idbcc9ba23-13d3-4a79-946a-bc10c15b8a24" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">terminate such acquisition program and
				submit the report required by subparagraph (D), unless the Secretary determines
				that the continuation of such program is essential to the national security of
				the United States and submits a written certification in accordance with
				subparagraph (C)(i) accompanied by a report setting forth the assessment
				carried out pursuant to subparagraph (A) and the basis for each determination
				made in accordance with clauses (I) through (IV) of subparagraph (C)(i),
				together with supporting documentation;</text>
							</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5b9ad064-f206-455e-bf94-e7e2fe4c3a77" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">if
				the program is not terminated—</text>
								<clause commented="no" display-inline="no-display-inline" id="id4aa09c70-b04e-4128-9ff6-b3a8fef26142"><enum>(i)</enum><text display-inline="yes-display-inline">submit to Congress, before the end of the
				60-day period beginning on the day the Selected Acquisition Report containing
				the information described in subsection (g) is required to be submitted under
				section 2432(f) of this title, a written certification stating that—</text>
									<subclause commented="no" display-inline="no-display-inline" id="id608bffb8-c431-476f-b142-4c6780c3c2f9"><enum>(I)</enum><text display-inline="yes-display-inline">such
				acquisition program is essential to national security;</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="ided5d7729-ed15-42d0-9092-795bd0d4a29d"><enum>(II)</enum><text display-inline="yes-display-inline">there are no alternatives to such
				acquisition program which will provide equal or greater capability to meet a
				joint military requirement (as that term is defined in section 181(h)(1) of
				this title) at less cost;</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="id44419fe4-f5e1-4927-aac2-0852edd71a97"><enum>(III)</enum><text display-inline="yes-display-inline">the
				new estimates of the program acquisition unit cost or procurement unit cost
				were arrived at in accordance with the requirements of section 139d of this
				title and are reasonable; and</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="id92290fa6-ce33-4f57-91ac-a2b03deed5a1"><enum>(IV)</enum><text display-inline="yes-display-inline">the
				management structure for the acquisition program is adequate to manage and
				control program acquisition unit cost or procurement unit cost;</text>
									</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idec971768-f4bc-49e9-8402-e6a2e495079c"><enum>(ii)</enum><text display-inline="yes-display-inline">rescind the most recent Milestone approval
				(or Key Decision Point approval in the case of a space program) for such
				program and withdraw any associated certification under section 2366a or 2366b
				of this title; and</text>
								</clause><clause commented="no" display-inline="no-display-inline" id="id033c53bd-c1e1-40ce-81af-3640059b268f"><enum>(iii)</enum><text display-inline="yes-display-inline">require a new Milestone approval (or Key
				Decision Point approval in the case of a space program) for such program before
				entering into a new contract, exercising an option under an existing contract,
				or otherwise extending the scope of an existing contract under such
				program;</text>
								</clause></subparagraph><subparagraph id="id5B54243387AF4C5A941081D35408AA1D" indent="up1"><enum>(D)</enum><text>if the program is terminated, submit
				to Congress a written report setting forth—</text>
								<clause id="idE108A9F3521E498E991C0363BC1D1788"><enum>(i)</enum><text>an explanation of the reasons for
				terminating the program;</text>
								</clause><clause id="idBD23E989B7C444E4B499A5FED78DDA45"><enum>(ii)</enum><text>the alternatives considered to
				address any problems in the program; and</text>
								</clause><clause id="idD721A465C13C4D9686FE4B8ED9DA1241"><enum>(iii)</enum><text>the course the Department plans
				to pursue to meet any continuing joint military requirements otherwise intended
				to be met by the program;
				and</text>
								</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0375c4d6-7a56-4577-b887-9077fb911b79"><enum>(b)</enum><header display-inline="yes-display-inline">Total expenditure for procurement resulting
			 in treatment as MDAP</header><text display-inline="yes-display-inline">Section
			 2430(a)(2) of such title is amended by inserting <quote>, including all planned
			 increments or spirals,</quote> after <quote>an eventual total expenditure for
			 procurement</quote>.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="id5883beaa-bcd4-4a24-a327-ae37bafc012d" section-type="subsequent-section"><enum>205.</enum><header display-inline="yes-display-inline">Organizational conflicts of interest in the
			 acquisition of major weapon systems</header>
				<subsection commented="no" display-inline="no-display-inline" id="id88f5c69c-5ee8-4d7e-a8c6-ba4c3a2be948"><enum>(a)</enum><header display-inline="yes-display-inline">Revised regulations required</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
			 the enactment of this Act, the Under Secretary of Defense for Acquisition,
			 Technology, and Logistics shall revise the Defense Supplement to the Federal
			 Acquisition Regulation to address organizational conflicts of interest by
			 contractors in the acquisition of major weapon systems.</text>
				</subsection><subsection commented="no" display-inline="no-display-inline" id="idbfa7f312-cec9-451e-ac9a-78b0d762c32b"><enum>(b)</enum><header display-inline="yes-display-inline">Elements</header><text display-inline="yes-display-inline">The revised regulations required by
			 subsection (a) shall, at a minimum—</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id438522cf-dd39-4340-ab1f-79010541493f"><enum>(1)</enum><text display-inline="yes-display-inline">ensure that the Department of Defense
			 receives advice on systems architecture and systems engineering matters with
			 respect to major weapon systems from federally funded research and development
			 centers or other sources independent of the prime contractor;</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idec594b06-d807-441d-958b-e7b84e86033b"><enum>(2)</enum><text display-inline="yes-display-inline">require that a contract for the performance
			 of systems engineering and technical assistance (SETA) functions with regard to
			 a major weapon system contains a provision prohibiting the contractor or any
			 affiliate of the contractor from having a direct financial interest in the
			 development or construction of the weapon system or any component
			 thereof;</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8A4AAFBE712542ECAADE511959A34612"><enum>(3)</enum><text display-inline="yes-display-inline">provide for an exception to the requirement
			 in paragraph (2) for an affiliate that is separated from the contractor by
			 structural mechanisms, approved by the Secretary of Defense, that are similar
			 to those required for special security agreements under rules governing foreign
			 ownership, control, or influence over United States companies that have access
			 to classified information, including, at a minimum—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="idBAEA875C0DCD47FB8D9E6BA1B5E2FBCE"><enum>(A)</enum><text display-inline="yes-display-inline">establishment of the affiliate as a
			 separate business entity, geographically separated from related entities, with
			 its own employees and management and restrictions on transfers for
			 personnel;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3CD096DE4C5E446B9FD56818B76CB535"><enum>(B)</enum><text display-inline="yes-display-inline">a governing board for the affiliate that
			 has organizational separation from related entities and governance procedures
			 that require the board to act solely in the interest of the affiliate, without
			 regard to the interests of related entities, except in specified
			 circumstances;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2750E7BAA1854313A7A1F66AF2067093"><enum>(C)</enum><text display-inline="yes-display-inline">complete informational separation,
			 including the execution of non-disclosure agreements;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id25CD9C6F92194AC69A8A81092500CD51"><enum>(D)</enum><text display-inline="yes-display-inline">initial and recurring training on
			 organizational conflicts of interest and protections against organizational
			 conflicts of interest; and</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6BEB9F649D2744508FD0B9A37CB97138"><enum>(E)</enum><text display-inline="yes-display-inline">annual compliance audits in which
			 Department of Defense personnel are authorized to participate;</text>
						</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF3D07BB9A3794A0B9622B7346FD40C22"><enum>(4)</enum><text display-inline="yes-display-inline">prohibit the use of the exception in
			 paragraph (3) for any category of systems engineering and technical assistance
			 functions (including, but not limited to, advice on source selection matters)
			 for which the potential for an organizational conflict of interest or the
			 appearance of an organizational conflict of interest makes mitigation in
			 accordance with that paragraph an inappropriate approach;</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EED56BB646847FD90CE83F6628A5EFD"><enum>(5)</enum><text display-inline="yes-display-inline">authorize waiver of the requirement in
			 paragraph (2) in cases in which the agency head determines in writing
			 that—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="idF211D5A6A7B94220900B572CFF5B7BD8"><enum>(A)</enum><text display-inline="yes-display-inline">the financial interest of the contractor or
			 its affiliate in the development or construction of the weapon system is not
			 substantial and does not include a prime contract, a first-tier subcontract, or
			 a joint venture or similar relationship with a prime contractor or first-tier
			 subcontractor; or</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6507EB2CB5DB48D79E60BE5AECFA8A93"><enum>(B)</enum><text display-inline="yes-display-inline">the contractor—</text>
							<clause commented="no" display-inline="no-display-inline" id="id59F68A024CE84ABFB70E9577FEF74164"><enum>(i)</enum><text display-inline="yes-display-inline">has unique systems engineering capabilities
			 that are not available from other sources;</text>
							</clause><clause commented="no" display-inline="no-display-inline" id="idA43ED86ABE4340DF8E112FA2F6CADE3E"><enum>(ii)</enum><text display-inline="yes-display-inline">has taken appropriate actions to mitigate
			 any organizational conflict of interest; and</text>
							</clause><clause commented="no" display-inline="no-display-inline" id="id3DE6D5D5655841BBB133AE0F14E4A524"><enum>(iii)</enum><text display-inline="yes-display-inline">has made a binding commitment to comply
			 with the requirement in paragraph (2) by not later than January 1, 2011;
			 and</text>
							</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4121f4cb-2668-4e75-b1b4-31c8d9196284"><enum>(6)</enum><text display-inline="yes-display-inline">provide for fair and objective
			 <quote>make-buy</quote> decisions by the prime contractor on a major weapon
			 system by—</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="idb2f0a498-4b1b-484d-b304-e99247a12090"><enum>(A)</enum><text display-inline="yes-display-inline">requiring prime contractors to give full
			 and fair consideration to qualified sources other than the prime contractor for
			 the development or construction of major subsystems and components of the
			 weapon system;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id184c9aa1-bd8b-46dd-be73-437f7a02d02a"><enum>(B)</enum><text display-inline="yes-display-inline">providing for government oversight of the
			 process by which prime contractors consider such sources and determine whether
			 to conduct such development or construction in-house or through a
			 subcontract;</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idec9da17e-3d99-43ef-ab78-ba8c2457ba28"><enum>(C)</enum><text display-inline="yes-display-inline">authorizing program managers to disapprove
			 the determination by a prime contractor to conduct development or construction
			 in-house rather than through a subcontract in cases in which—</text>
							<clause commented="no" display-inline="no-display-inline" id="idBF01492A54964D9596E37B15B66E2C47"><enum>(i)</enum><text display-inline="yes-display-inline">the prime contractor fails to give full and
			 fair consideration to qualified sources other than the prime contractor;
			 or</text>
							</clause><clause commented="no" display-inline="no-display-inline" id="id0313340CD31B4E068E042CB72183EEA6"><enum>(ii)</enum><text display-inline="yes-display-inline">implementation of the determination by the
			 prime contractor is likely to undermine future competition or the defense
			 industrial base; and</text>
							</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3700488b-d446-4db3-9fd0-f81eebc1c9ca"><enum>(D)</enum><text display-inline="yes-display-inline">providing for the consideration of prime
			 contractors <quote>make-buy</quote> decisions in past performance
			 evaluations.</text>
						</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id07346224-b563-49dc-bcd1-16be010217af"><enum>(c)</enum><header display-inline="yes-display-inline">Organizational Conflict of Interest Review
			 Board</header>
					<paragraph commented="no" display-inline="no-display-inline" id="idbb80cdfd-658d-478d-8c8f-d5b1788d0b6a"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment required</header><text display-inline="yes-display-inline">Not later than 90 days after the date of
			 the enactment of this Act, the Secretary of Defense shall establish within the
			 Department of Defense a board to be known as the <quote>Organizational Conflict
			 of Interest Review Board</quote>.</text>
					</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2b7be57c-63ae-449b-8d77-76a203eae647"><enum>(2)</enum><header display-inline="yes-display-inline">Duties</header><text display-inline="yes-display-inline">The Board shall have the following
			 duties:</text>
						<subparagraph commented="no" display-inline="no-display-inline" id="idfc898335-4371-4e95-afcf-c55e8b38de37"><enum>(A)</enum><text display-inline="yes-display-inline">To advise the Under Secretary of Defense
			 for Acquisition, Technology, and Logistics on policies relating to
			 organizational conflicts of interest in the acquisition of major weapon
			 systems.</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6179171f-6731-476a-8d95-1c9a9fa7cb5a"><enum>(B)</enum><text display-inline="yes-display-inline">To advise program managers on steps to
			 comply with the requirements of the revised regulations required by this
			 section and to address organizational conflicts of interest in the acquisition
			 of major weapon systems.</text>
						</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id80da2297-cec7-4650-a042-5b14c76a6014"><enum>(C)</enum><text display-inline="yes-display-inline">To advise appropriate officials of the
			 Department on organizational conflicts of interest arising in proposed mergers
			 of defense contractors.</text>
						</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6db96633-9722-4cb8-8c8e-f7244bb2d69c"><enum>(d)</enum><header display-inline="yes-display-inline">Major weapon system defined</header><text display-inline="yes-display-inline">In this section, the term <term>major
			 weapon system</term> has the meaning given that term in section 2379(d) of
			 title 10, United States Code.</text>
				</subsection></section><section commented="no" display-inline="no-display-inline" id="id33da649f-f9fc-4cca-9c5d-d00a9c243e42" section-type="subsequent-section"><enum>206.</enum><header display-inline="yes-display-inline">Awards for Department of Defense personnel
			 for excellence in the acquisition of products and services</header>
				<subsection commented="no" display-inline="no-display-inline" id="id77965743-3764-4ec3-8193-86c0a555a832"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id22362fb5-101c-4c6c-9e9d-efd28ebf5b39"><enum>(b)</enum><header display-inline="yes-display-inline">Elements</header><text display-inline="yes-display-inline">The program required by subsection (a)
			 shall include the following:</text>
					<paragraph commented="no" display-inline="no-display-inline" id="id2740b1ff-d6f5-4c16-8ac0-6fc3ee31d243"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id9cd649dc-0f54-4069-adba-441f2820aad3"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idcf8cbe7a-b5cc-48c4-bfd8-9826fd6c12ae"><enum>(c)</enum><header display-inline="yes-display-inline">Award of cash bonuses</header><text display-inline="yes-display-inline">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="IDe20c2bdc4ea64506a4cd0c0f18067920"><enum>207.</enum><header>Earned Value
			 Management</header>
				<subsection id="id0CBE73BEE7374C4EB4A927D631D49600"><enum>(a)</enum><header>Enhanced
			 tracking of contractor performance</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
			 the enactment of this Act, the Under Secretary of Defense for Acquisition,
			 Technology, and Logistics shall review the existing guidance and, as necessary,
			 prescribe additional guidance governing the implementation of the Earned Value
			 Management (EVM) requirements and reporting for contracts to ensure that the
			 Department of Defense—</text>
					<paragraph id="idFB16FDD965B24D2BA253C8902A55A8C6"><enum>(1)</enum><text display-inline="yes-display-inline">applies uniform EVM standards to reliably
			 and consistently measure contract or project performance;</text>
					</paragraph><paragraph id="id1B93F8A0CC4A495F8F56D20CD485D273"><enum>(2)</enum><text display-inline="yes-display-inline">applies such standards to establish
			 appropriate baselines at the award of a contract or commencement of a program,
			 whichever is earlier;</text>
					</paragraph><paragraph id="id4AA8D26BE59A4960B04062225860D6C2"><enum>(3)</enum><text>ensures that
			 personnel responsible for administering and overseeing EVM systems have the
			 training and qualifications needed to perform this function; and</text>
					</paragraph><paragraph id="id3AFCE033A9694C558B6C0CABA5D20663"><enum>(4)</enum><text>has appropriate
			 mechanisms in place to ensure that contractors establish and use approved EVM
			 systems.</text>
					</paragraph></subsection><subsection id="IDb763b1f6331f4ba5b20c140ced5c895d"><enum>(b)</enum><header>Enforcement
			 mechanisms</header><text>For the purposes of subsection (a)(4), mechanisms to
			 ensure that contractors establish and use approved EVM systems shall
			 include—</text>
					<paragraph id="idBA6DFB3C7BE1415DA0CB6C0693865FA3"><enum>(1)</enum><text>consideration of
			 the quality of the contractors' EVM systems and the timeliness of the
			 contractors' EVM reporting in any past performance evaluation for a contract
			 that includes an EVM requirement; and</text>
					</paragraph><paragraph id="idBFCB398214F64F2E9AD58A5DFBB2A76C"><enum>(2)</enum><text>increased
			 government oversight of the cost, schedule, scope, and performance of
			 contractors that do not have approved EVM systems in place.</text>
					</paragraph></subsection></section><section id="id6B190E104E2C4AE0B15390F5A8A98A84"><enum>208.</enum><header>Expansion of
			 national security objectives of the national technology and industrial
			 base</header>
				<subsection id="id3CD316151FEA4DDE82203F2D9484C3BC"><enum>(a)</enum><header>In
			 general</header><text>Subsection (a) of section 2501 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="idCDE05CC084E94571B7E694FFB03ED9D7" style="OLC">
						<paragraph id="idD5E0C4EBFF924167B584E3FF2A62B393"><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="id437A2B7EB3334CC48CE28D03DF784300"><enum>(b)</enum><header>Notification of
			 Congress upon termination of mdaps of effects on national security
			 objectives</header><text>Such section is further amended by adding at the end
			 the following new subsection:</text>
					<quoted-block display-inline="no-display-inline" id="id92FA6CAB452543898B6104295EE5D021" style="OLC">
						<subsection id="id4AC34AA1B9E94FA5B838C020FAA138F4"><enum>(c)</enum><header>Notification of
				Congress upon termination of major defense acquisition program of effects on
				objectives</header><paragraph commented="no" display-inline="yes-display-inline" id="id728B27294E2845A5ABD54606BBB12FE8"><enum>(1)</enum><text>Upon the termination of
				a major defense acquisition program, the Secretary of Defense shall notify
				Congress of the effects of such termination on the national security objectives
				for the national technology and industrial base set forth in subsection (a),
				and the measures, if any, that have been taken or should be taken to mitigate
				those effects.</text>
							</paragraph><paragraph id="id481A8562FAD54112AFAED91812357A69" indent="up1"><enum>(2)</enum><text>In this subsection, the term
				<term>major defense acquisition program</term> has the meaning given that term
				in section 2430 of this
				title.</text>
							</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection></section><section id="ID54b5cd87bf1e422fad09a80ef18219ac"><enum>209.</enum><header>Plan for
			 elimination of weaknesses in operations that hinder capacity to assemble and
			 assess reliable cost information on acquired assets under major defense
			 acquisition programs</header>
				<subsection id="idDD0680C8A0604986B29C621842D21109"><enum>(a)</enum><header>In
			 general</header><text>Not later than 180 days after the date of the enactment
			 of this Act, the Chief Management Officer of the Department of Defense shall
			 submit to Congress a report setting forth a plan to identify and address
			 weaknesses in operations that hinder the capacity to assemble and assess
			 reliable cost information on the systems and assets to be acquired under major
			 defense acquisition programs.</text>
				</subsection><subsection id="id69AAF6DE65AC4041AAB984A9BAB36A57"><enum>(b)</enum><header>Elements</header><text>The
			 report required under subsection (a) shall include the following:</text>
					<paragraph id="idFE195F91C44B4C58AA38D891ADB94B89"><enum>(1)</enum><text>Mechanisms to
			 identify any weaknesses in operations under major defense acquisition programs
			 that hinder the capacity to assemble and assess reliable cost information on
			 the systems and assets to be acquired under such programs in accordance with
			 applicable accounting standards.</text>
					</paragraph><paragraph id="id3BE9D57D18BF4D09AF79CA594C2FBD51"><enum>(2)</enum><text>Mechanisms to
			 address weaknesses in operations under major defense acquisition programs
			 identified pursuant to the utilization of the mechanisms set forth under
			 paragraph (1).</text>
					</paragraph><paragraph id="idF6AAB346E9A54EEDB1F9947A4E36FB1A"><enum>(3)</enum><text>A description of
			 the proposed implementation of the mechanisms set forth pursuant to paragraph
			 (2) to address the weaknesses described in that paragraph, including—</text>
						<subparagraph id="idF5FDBDB80E8441AE80575104817D3140"><enum>(A)</enum><text>the actions to be
			 taken to implement such mechanisms;</text>
						</subparagraph><subparagraph id="idE1C464B8B0FA4637AE49B84DF21D14F3"><enum>(B)</enum><text>a schedule for
			 carrying out such mechanisms; and</text>
						</subparagraph><subparagraph id="id4E250304CE2941ABAAC4A4D03393A1E7"><enum>(C)</enum><text>metrics for
			 assessing the progress made in carrying out such mechanisms.</text>
						</subparagraph></paragraph><paragraph id="id91AEFBE12BE543D4B4DFA827D9C0913E"><enum>(4)</enum><text>A description of
			 the organization and resources required to carry out mechanisms set forth
			 pursuant to paragraphs (1) and (2).</text>
					</paragraph><paragraph id="id04675D29608A4617B5F8490C61575321"><enum>(5)</enum><text>In the case of
			 the financial management practices of each military department applicable to
			 major defense acquisition programs—</text>
						<subparagraph id="idF432234AA1F8456D8E10E006181EFDBC"><enum>(A)</enum><text>a description of
			 any weaknesses in such practices; and</text>
						</subparagraph><subparagraph id="id0F0CD92DC522492F8993FA3840814C99"><enum>(B)</enum><text>a description of
			 the actions to be taken to remedy such weaknesses.</text>
						</subparagraph></paragraph></subsection><subsection id="id0EE3F5CE543D461FB78E35EACC8675A5"><enum>(c)</enum><header>Consultation</header>
					<paragraph id="idA1394B3B10354FBFB87B309F128D6692"><enum>(1)</enum><header>In
			 general</header><text>In preparing the report required by subsection (a), the
			 Chief Management Officer of the Department of Defense shall seek and consider
			 input from each of the following:</text>
						<subparagraph id="idBBFC0FEDB9A841E5964CB8D79CC12B7C"><enum>(A)</enum><text>The Chief
			 Management Officer of the Department of the Army.</text>
						</subparagraph><subparagraph id="id9AB60F64F00A4AC48D75C557F48A9B1C"><enum>(B)</enum><text>The Chief
			 Management Officer of the Department of the Navy.</text>
						</subparagraph><subparagraph id="id28D86B14656349B5B3F17EFC1D7D5F7E"><enum>(C)</enum><text>The Chief
			 Management Officer of the Department of the Air Force.</text>
						</subparagraph></paragraph><paragraph id="id40F18837AB4248CEBE26053B0B8DDD96"><enum>(2)</enum><header>Financial
			 management practices</header><text>In preparing for the report required by
			 subsection (a) the matters covered by subsection (b)(5) with respect to a
			 particular military department, the Chief Management Officer of the Department
			 of Defense shall consult specifically with the Chief Management Officer of the
			 military department concerned.</text>
					</paragraph></subsection></section></title></legis-body>
	<attestation>
		<attestation-group>
			<attestation-date chamber="Senate" date="20090507">Passed the Senate
			 May 7, 2009.</attestation-date>
			<attestor display="no"></attestor>
			<role>Secretary</role>
		</attestation-group>
	</attestation>
	<endorsement display="yes">
	</endorsement>
</bill>
