[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 454 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 454
To improve the organization and procedures of the Department of Defense
for the acquisition of major weapon systems, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 23, 2009
Mr. Levin (for himself and Mr. McCain) introduced the following bill;
which was read twice and referred to the Committee on Armed Services
_______________________________________________________________________
A BILL
To improve the organization and procedures of the Department of Defense
for the acquisition of major weapon systems, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Weapon Systems
Acquisition Reform Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Congressional defense committees.
TITLE I--ACQUISITION ORGANIZATION
Sec. 101. Reports on systems engineering capabilities of the Department
of Defense.
Sec. 102. Director of Developmental Test and Evaluation.
Sec. 103. Assessment of technological maturity of critical technologies
of major defense acquisition programs by
the Director of Defense Research and
Engineering.
Sec. 104. Director of Independent Cost Assessment.
Sec. 105. Role of the commanders of the combatant commands in
identifying joint military requirements.
TITLE II--ACQUISITION POLICY
Sec. 201. Consideration of trade-offs among cost, schedule, and
performance in the acquisition of major
weapon systems.
Sec. 202. Preliminary design review for major defense acquisition
programs.
Sec. 203. Maximization of competition throughout the life cycle of
major defense acquisition programs.
Sec. 204. Critical cost growth in major defense acquisition programs.
Sec. 205. Organizational conflicts of interest in the acquisition of
major weapon systems.
Sec. 206. Awards for Department of Defense personnel for excellence in
the acquisition of products and services.
SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES.
In this Act, the term ``congressional defense committees'' has the
meaning given that term in section 101(a)(16) of title 10, United
States Code.
TITLE I--ACQUISITION ORGANIZATION
SEC. 101. REPORTS ON SYSTEMS ENGINEERING CAPABILITIES OF THE DEPARTMENT
OF DEFENSE.
(a) Reports by Service Acquisition Executives.--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:
(1) 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--
(A) 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;
(B) the systems engineering strategy for each major
weapon system includes a robust program for improving
reliability, availability, and maintainability as an
integral part of design and development; and
(C) systems engineering requirements, including
reliability, availability, and maintainability
requirements, are identified during the Joint
Capabilities Integration Development System process and
incorporated into contract requirements for each major
weapon system.
(2) A description of the actions that such military
department has taken, or plans to take, to--
(A) establish needed development planning and
systems engineering organizations and processes; and
(B) 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.
(b) Report by Under Secretary of Defense for Acquisition,
Technology, and Logistics.--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:
(1) 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.
(2) 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.
SEC. 102. DIRECTOR OF DEVELOPMENTAL TEST AND EVALUATION.
(a) Establishment of Position.--
(1) In general.--Chapter 4 of title 10, United States Code,
is amended by inserting after section 139b the following new
section:
``Sec. 139c. Director of Developmental Test and Evaluation
``(a) 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.
``(b)(1) 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.
``(2) 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.
``(c) The Director of Developmental Test and Evaluation shall--
``(1) develop policies and guidance for the developmental
test and evaluation activities of the Department of Defense;
``(2) monitor and review the developmental test and
evaluation activities of the Department of Defense;
``(3) review and approve the test and evaluation master
plan for each major defense acquisition program of the
Department of Defense;
``(4) supervise the activities of the Director of the
Department of Defense Test Resource Management Center under
section 196 of this title;
``(5) 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
``(6) 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.
``(d) 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.
``(e) The Director of Developmental Test and Evaluation shall
submit to Congress each year a report on the developmental test and
evaluation activities of the Department of Defense during the preceding
year.''.
(2) Clerical amendment.--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:
``139c. Director of Developmental Test and Evaluation.''.
(3) Conforming amendment.--Section 196(f) of such title is
amended by striking ``the Under Secretary of Defense for
Acquisition, Technology, and Logistics'' and all that follows
and inserting ``the Under Secretary of Defense for Acquisition,
Technology, and Logistics and the Director of Developmental
Test and Evaluation.''.
(b) Reports on Developmental Testing Organizations and Personnel.--
(1) Reports by service acquisition executives.--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:
(A) 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.
(B) 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.
(C) 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.
(2) First annual report by director of developmental test
and evaluation.--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).
SEC. 103. ASSESSMENT OF TECHNOLOGICAL MATURITY OF CRITICAL TECHNOLOGIES
OF MAJOR DEFENSE ACQUISITION PROGRAMS BY THE DIRECTOR OF
DEFENSE RESEARCH AND ENGINEERING.
(a) Assessment by Director of Defense Research and Engineering.--
(1) In general.--Section 139a of title 10, United States
Code, is amended by adding at the end the following new
subsection:
``(c)(1) The Director of Defense Research and Engineering shall
periodically review and assess the technological maturity and
integration risk of critical technologies of the major defense
acquisition programs of the Department of Defense and report on the
findings of such reviews and assessments to the Under Secretary of
Defense for Acquisition, Technology, and Logistics.
``(2) 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.''.
(2) First annual report.--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.
(b) Report on Resources for Implementation.--Not later than 120
days after the date of the enactment of this Act, the Director of
Defense Research and Engineering shall submit to the congressional
defense committees a report describing any additional resources that
may be required by the Director, and by other science and technology
elements of the Department of Defense, to carry out the following:
(1) The requirements under the amendment made by subsection
(a).
(2) The technological maturity assessments required by
section 2366b(a) of title 10, United States Code, as amended by
section 202 of this Act.
(3) The requirements of Department of Defense Instruction
5000, as revised.
SEC. 104. DIRECTOR OF INDEPENDENT COST ASSESSMENT.
(a) Director of Independent Cost Assessment.--
(1) In general.--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:
``Sec. 139d. Director of Independent Cost Assessment
``(a) 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.
``(b) 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--
``(1) 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;
``(2) 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;
``(3) establish guidance on confidence levels for cost
estimates on major defense acquisition programs and require the
disclosure of all such confidence levels;
``(4) monitor and review all cost estimates and cost
analyses conducted in connection with major defense acquisition
programs and major automated information system programs; and
``(5) conduct independent cost estimates and cost analyses
for major defense acquisition programs and major automated
information system programs--
``(A) in advance of--
``(i) any certification under section 2366a
or 2366b of this title;
``(ii) any certification under section
2433(e)(2) of this title; and
``(iii) any report under section 2445c(f)
of this title; and
``(B) whenever necessary to ensure that an estimate
or analysis under paragraph (4) is unbiased, fair, and
reliable.
``(c)(1) 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.
``(2) 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.
``(d)(1) 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.
``(2) 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.
``(3) 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.
``(e)(1) 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.
``(2) 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.
``(3) The Secretary may comment on any report of the Director to
Congress under this subsection.
``(f) 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.
``(g) 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.''.
(2) Clerical amendment.--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:
``139d. Director of Independent Cost Assessment.''.
(b) Report on Monitoring of Operating and Support Costs for
MDAPs.--
(1) Report to secretary of defense.--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.
(2) Transmittal to congress.--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.
(c) Transfer of Personnel and Functions of Cost Analysis
Improvement Group.--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.
(d) Conforming Amendments.--
(1) Section 2306b(i)(1)(B) of title 10, United States Code,
is amended by striking ``Cost Analysis Improvement Group of the
Department of Defense'' and inserting ``Director of Independent
Cost Assessment''.
(2) Section 2366a(a)(4) of such title is amended by
striking ``has been submitted'' and inserting ``has been
approved by the Director of Independent Cost Assessment''.
(3) Section 2366b(a)(1)(C) of such title is amended by
striking ``have been developed to execute'' and inserting
``have been approved by the Director of Independent Cost
Assessment to provide for the execution of''.
(4) Section 2433(e)(2)(B)(iii) of such title is amended by
striking ``are reasonable'' and inserting ``have been
determined by the Director of Independent Cost Assessment to be
reasonable''.
(5) Subparagraph (A) of section 2434(b)(1) of such title is
amended to read as follows:
``(A) be prepared or approved by the Director of
Independent Cost Assessment; and''.
(6) Section 2445c(f)(3) of such title is amended by
striking ``are reasonable'' and inserting ``have been
determined by the Director of Independent Cost Assessment to be
reasonable''.
SEC. 105. ROLE OF THE COMMANDERS OF THE COMBATANT COMMANDS IN
IDENTIFYING JOINT MILITARY REQUIREMENTS.
Section 181(d) of title 10, United States Code, is amended--
(1) by inserting ``(1)'' before ``The Under Secretary'';
and
(2) by adding at the end the following new paragraph:
``(2) The Council shall seek and consider input from the commanders
of the combatant commands in carrying out its mission under paragraphs
(1) and (2) of subsection (b) and in conducting periodic reviews in
accordance with the requirements of subsection (e).''.
TITLE II--ACQUISITION POLICY
SEC. 201. CONSIDERATION OF TRADE-OFFS AMONG COST, SCHEDULE, AND
PERFORMANCE IN THE ACQUISITION OF MAJOR WEAPON SYSTEMS.
(a) Consideration of Trade-Offs.--
(1) In general.--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.
(2) Elements.--The mechanisms required under this
subsection shall ensure, at a minimum, that--
(A) Department of Defense officials responsible
acquisition, budget, and cost estimating functions are
provided an appropriate opportunity to develop
estimates and raise cost and schedule matters before
performance requirements are established for major
weapon systems; and
(B) 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.
(3) Major weapons system defined.--In this subsection, the
term ``major weapon system'' has the meaning given that term in
section 2379(d) of title 10, United States Code.
(b) Duties of Joint Requirements Oversight Council.--Section
181(b)(1) of title 10, United States Code, is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) in ensuring the consideration of trade-offs
among cost, schedule and performance for joint military
requirements;''.
SEC. 202. PRELIMINARY DESIGN REVIEW FOR MAJOR DEFENSE ACQUISITION
PROGRAMS.
Section 2366b(a) of title 10, United States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) by redesignating paragraph (2) as paragraph (3);
(3) by inserting after paragraph (1) the following new
paragraph (2):
``(2) 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''; and
(4) in paragraph (3), as redesignated by paragraph (2) of
this section--
(A) in subparagraph (D), by striking the semicolon
and inserting ``, 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'';
(B) by striking subparagraph (E); and
(C) by redesignating subparagraph (F) as
subparagraph (E).
SEC. 203. MAXIMIZATION OF COMPETITION THROUGHOUT THE LIFE CYCLE OF
MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Maximization of Competition.--The Secretary of Defense shall
ensure that the acquisition plan for each major defense acquisition
program includes measures to maximize competition at both the prime
contract level and the subcontract level of such program throughout the
life cycle of such program.
(b) Measures To Maximize Competition.--The measures to maximize
competition utilized for purposes of subsection (a) may include, but
are not limited to, measures to achieve the following, where cost-
effective:
(1) Competitive prototyping.
(2) Dual-sourcing.
(3) Funding of a second source for interchangeable, next-
generation prototype systems or subsystems.
(4) Utilization of modular, open architectures to enable
competition for upgrades.
(5) Periodic competitions for subsystem upgrades.
(6) Licensing of additional suppliers.
(7) Requirements for Government oversight or approval of
make or buy decisions to ensure competition at the subsystem
level.
(8) Periodic system or program reviews to address long-term
competitive effects of program decisions.
(9) Consideration of competition at the subcontract level
and in make or buy decisions as a factor in proposal
evaluations.
(c) Competitive Prototyping.--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:
(1) That the acquisition strategy for each major defense
acquisition program provides for two or more competing teams to
produce prototypes before Milestone B approval (or Key Decision
Point B approval in the case of a space program) unless the
milestone decision authority for such program waives the
requirement on the basis of a determination that, but for such
waiver, the Department would be unable to meet critical
national security objectives.
(2) That if the milestone decision authority waives the
requirement for prototypes produced by two or more teams for a
major defense acquisition program under paragraph (1), the
acquisition strategy for the program provides for the
production of at least one prototype before Milestone B
approval (or Key Decision Point B approval in the case of a
space program) unless the milestone decision authority waives
such requirement on the basis of a determination that, but for
such waiver, the Department would be unable to meet critical
national security objectives.
(3) 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.
(d) Major Defense Acquisition Program Defined.--In this section,
the term ``major defense acquisition program'' has the meaning given
that term in section 2430 of title 10, United States Code.
(e) Applicability.--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.
SEC. 204. CRITICAL COST GROWTH IN MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Authorized Actions in Event of Critical Cost Growth.--Section
2433(e)(2) of title 10, United States Code, is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
(2) by striking subparagraph (B); and
(3) by inserting after subparagraph (A) the following new
subparagraphs (B) and (C):
``(B) terminate such acquisition program, unless the
Secretary determines that the continuation of such program is
essential to the national security of the United States and
submits a written certification in accordance with subparagraph
(C)(i) accompanied by a report setting forth the assessment
carried out pursuant to subparagraph (A) and the basis for each
determination made in accordance with clauses (I) through (IV)
of subparagraph (C)(i), together with supporting documentation;
``(C) if the program is not terminated--
``(i) 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--
``(I) such acquisition program is essential
to national security;
``(II) there are no alternatives to such
acquisition program which will provide equal or
greater capability to meet a joint military
requirement (as that term is defined in section
181(g)(1) of this title) at less cost;
``(III) 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
``(IV) the management structure for the
acquisition program is adequate to manage and
control program acquisition unit cost or
procurement unit cost;
``(ii) 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
``(iii) require a new Milestone approval (or Key
Decision Point approval in the case of a space program)
for such program before entering into a new contract,
exercising an option under an existing contract, or
otherwise extending the scope of an existing contract
under such program; and''.
(b) Total Expenditure for Procurement Resulting in Treatment as
MDAP.--Section 2430(a)(2) of such title is amended by inserting ``,
including all planned increments or spirals,'' after ``an eventual
total expenditure for procurement''.
SEC. 205. ORGANIZATIONAL CONFLICTS OF INTEREST IN THE ACQUISITION OF
MAJOR WEAPON SYSTEMS.
(a) Revised Regulations Required.--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.
(b) Elements.--The revised regulations required by subsection (a)
shall, at a minimum--
(1) 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;
(2) require that a contract for the performance of systems
engineering and technical assistance (SETA) functions with
regard to a major weapon system contains a provision
prohibiting the contractor or any affiliate of the contractor
from having a direct financial interest in the development or
construction of the weapon system or any component thereof; and
(3) provide for fair and objective ``make-buy'' decisions
by the prime contractor on a major weapon system by--
(A) 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;
(B) 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;
(C) where appropriate, requiring that program
managers, rather than prime contractors, make the
determination whether such development or construction
should be conducted in-house or through a subcontract;
and
(D) providing for the consideration of prime
contractors ``make-buy'' decisions in past performance
evaluations.
(c) Organizational Conflict of Interest Review Board.--
(1) Establishment required.--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 ``Organizational Conflict of Interest Review
Board''.
(2) Duties.--The Board shall have the following duties:
(A) 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.
(B) 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.
(C) To advise appropriate officials of the
Department on organizational conflicts of interest
arising in proposed mergers of defense contractors.
(d) Major Weapon System Defined.--In this section, the term ``major
weapon system'' has the meaning given that term in section 2379(d) of
title 10, United States Code.
SEC. 206. AWARDS FOR DEPARTMENT OF DEFENSE PERSONNEL FOR EXCELLENCE IN
THE ACQUISITION OF PRODUCTS AND SERVICES.
(a) In General.--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.
(b) Elements.--The program required by subsection (a) shall include
the following:
(1) 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.
(2) 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.
(c) Award of Cash Bonuses.--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.
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