1.Short title; table of
contents
(a)This Act may be cited
as the Weapon Systems Acquisition
Reform Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title;
table of contents.
Sec. 2. Congressional defense
committees.
TITLE I—Acquisition
Organization
Sec. 101. Reports on systems engineering
capabilities of the Department of Defense.
Sec. 102. Director of Developmental Test
and Evaluation.
Sec. 103. Assessment of technological
maturity of critical technologies of major defense acquisition programs by the
Director of Defense Research and Engineering.
Sec. 104. Director of Independent Cost
Assessment.
Sec. 105. Role of the commanders of the
combatant commands in identifying joint military requirements.
TITLE II—Acquisition
Policy
Sec. 201. Consideration of trade-offs
among cost, schedule, and performance in the acquisition of major weapon
systems.
Sec. 202. Preliminary design review for
major defense acquisition programs.
Sec. 203. Maximization of competition
throughout the life cycle of major defense acquisition programs.
Sec. 204. Critical cost growth in major
defense acquisition programs.
Sec. 205. Organizational conflicts of
interest in the acquisition of major weapon systems.
Sec. 206. Awards for Department of
Defense personnel for excellence in the acquisition of products and
services.
2.Congressional
defense committeesIn this
Act, the term congressional defense committees has the meaning
given that term in section 101(a)(16) of title 10, United States Code.
<enum>I</enum><header>Acquisition
Organization</header>
<section id="idC9D29241D66846DC96A3E435BB20B175"><enum>101.</enum><header>Reports on
systems engineering capabilities of the Department of Defense</header>
<subsection id="ID1978576c705c48e297b03d5e2de1be29"><enum>(a)</enum><header>Reports by
service acquisition executives</header><text>Not later than 180 days after the
date of the enactment of this Act, the service acquisition executive of each
military department shall submit to the Under Secretary of Defense for
Acquisition, Technology, and Logistics a report setting forth the
following:</text>
<paragraph id="IDfc772a1ba82942c5b71504b80ee2cd2a"><enum>(1)</enum><text>A description of
the extent to which such military department has in place development planning
organizations and processes staffed by adequate numbers of personnel with
appropriate training and expertise to ensure that—</text>
<subparagraph id="IDcf837d7d77db42e8895b043653c9f67f"><enum>(A)</enum><text>key requirements,
acquisition, and budget decisions made for each major weapon system prior to
Milestones A and B are supported by a rigorous systems analysis and systems
engineering process;</text>
</subparagraph><subparagraph id="ID52f9e53cc18248a0a7668e04df387443"><enum>(B)</enum><text>the systems
engineering strategy for each major weapon system includes a robust program for
improving reliability, availability, and maintainability as an integral part of
design and development; and</text>
</subparagraph><subparagraph id="ID6a261b53d4a74f46b27c5e4357527805"><enum>(C)</enum><text>systems
engineering requirements, including reliability, availability, and
maintainability requirements, are identified during the Joint Capabilities
Integration Development System process and incorporated into contract
requirements for each major weapon system.</text>
</subparagraph></paragraph><paragraph id="ID00ae1fd69d10413f8b09d38c23320c25"><enum>(2)</enum><text>A description of
the actions that such military department has taken, or plans to take,
to—</text>
<subparagraph id="IDb9a1c7d06a6e4001869dd1b4c3a2ce74"><enum>(A)</enum><text>establish needed
development planning and systems engineering organizations and processes;
and</text>
</subparagraph><subparagraph id="IDd94c73c1eacd4bd7a82b505b453a1e4d"><enum>(B)</enum><text>attract, develop,
retain, and reward systems engineers with appropriate levels of hands-on
experience and technical expertise to meet the needs of such military
department.</text>
</subparagraph></paragraph></subsection><subsection id="IDd8ba04878ca64055a385a5c1d456780a"><enum>(b)</enum><header>Report by Under
Secretary of Defense for Acquisition, Technology, and
Logistics</header><text>Not later than 270 days after the date of the enactment
of this Act, the Under Secretary of Defense for Acquisition, Technology, and
Logistics shall submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a report on the
system engineering capabilities of the Department of Defense. The report shall
include, at a minimum, the following:</text>
<paragraph id="ID90a50a0ef5e148a8afa504efbd6ffd88"><enum>(1)</enum><text>An assessment by
the Under Secretary of the reports submitted by the service acquisition
executives pursuant to subsection (a) and of the adequacy of the actions that
each military department has taken, or plans to take, to meet the systems
engineering and development planning needs of such military department.</text>
</paragraph><paragraph id="ID673ab9a91768409db1756416a6acec81"><enum>(2)</enum><text>An assessment of
each of the recommendations of the report on Pre-Milestone A and Early-Phase
Systems Engineering of the Air Force Studies Board of the National Research
Council, including the recommended checklist of systems engineering issues to
be addressed prior to Milestones A and B, and the extent to which such
recommendations should be implemented throughout the Department of
Defense.</text>
</paragraph></subsection></section><section id="idBFB30EE43F2A459CA896478524BD5086"><enum>102.</enum><header>Director of
Developmental Test and Evaluation</header>
<subsection id="idBC9BC91157F244EB83FC07351A43A985"><enum>(a)</enum><header>Establishment of
position</header>
<paragraph id="idCF14C6BBBA2F48D8B1F76DE02F23DAC4"><enum>(1)</enum><header>In
general</header><text>Chapter 4 of title 10, United States Code, is amended by
inserting after section 139b the following new section:</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="id88D0EDC5F35549319AF29BE22BF19956" reported-display-style="strikethrough" style="USC">
<section id="id2DDB6546B8C7431A95B8453998A7F7AD"><enum>139c.</enum><header>Director of
Developmental Test and Evaluation</header>
<subsection id="id2FDA4E74297B479687CDFAC8E9B63672"><enum>(a)</enum><text>There is a
Director of Developmental Test and Evaluation, who shall be appointed by the
Secretary of Defense from among individuals with an expertise in acquisition
and testing.</text>
</subsection><subsection id="id4A275C29F61045C2A05E7843789D1D92"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id7F979991B1174D10AA446CD6260E6328"><enum>(1)</enum><text>The Director of
Developmental Test and Evaluation shall be the principal advisor to the
Secretary of Defense and the Under Secretary of Defense for Acquisition,
Technology, and Logistics on developmental test and evaluation in the
Department of Defense.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="idB153AD72519B47878069F13DF85773D7" indent="up1" reported-display-style="strikethrough"><enum>(2)</enum><text>The Director shall
be subject to the supervision of the Under Secretary of Defense for
Acquisition, Technology, and Logistics and shall report to the Under
Secretary.</text>
</paragraph></subsection><subsection id="id2706A4196B314B06BF7978323B99FC8A"><enum>(c)</enum><text>The Director of
Developmental Test and Evaluation shall—</text>
<paragraph id="idBA5D381984DB4C87B2E294658B732F25"><enum>(1)</enum><text>develop policies
and guidance for the developmental test and evaluation activities of the
Department of Defense;</text>
</paragraph><paragraph id="id1580439D6B8B4F4BA02129BDC2EAAE4E"><enum>(2)</enum><text>monitor and review
the developmental test and evaluation activities of the Department of
Defense;</text>
</paragraph><paragraph id="id0A86023462DC4F17BB751E257B99E51A"><enum>(3)</enum><text>review and approve
the test and evaluation master plan for each major defense acquisition program
of the Department of Defense;</text>
</paragraph><paragraph id="id90F7994996984742AF070D64C334A5AC"><enum>(4)</enum><text>supervise the
activities of the Director of the Department of Defense Test Resource
Management Center under section 196 of this title;</text>
</paragraph><paragraph id="id50E64303241C4E43BF0C9806826E827E"><enum>(5)</enum><text>review the
organizations and capabilities of the military departments with respect to
developmental test and evaluation and identify needed changes or improvements
to such organizations and capabilities; and</text>
</paragraph><paragraph id="idF2B5A493859B4762947941493C93855C"><enum>(6)</enum><text>perform such other
activities relating to the developmental test and evaluation activities of the
Department of Defense as the Under Secretary of Defense for Acquisition,
Technology, and Logistics may prescribe.</text>
</paragraph></subsection><subsection id="id0A427673A0584C8983749B49F15B85AF"><enum>(d)</enum><text>The Director of
Developmental Test and Evaluation shall have access to all records and data of
the Department of Defense (including the records and data of each military
department) that the Director considers necessary in order to carry out the
Director's duties under this section.</text>
</subsection><subsection id="id203CEFE0BCDF41FBAD64EB71773A5B09"><enum>(e)</enum><text>The Director of
Developmental Test and Evaluation shall submit to Congress each year a report
on the developmental test and evaluation activities of the Department of
Defense during the preceding
year.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1E9172630C5E4812952439A25A8793CC"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title is amended by inserting after the item relating to section 139b the
following new item:</text>
<quoted-block changed="deleted" committee-id="SSAS00" id="id94c7a782-afd6-4f28-a53d-cc4feb63103c" reported-display-style="strikethrough" style="USC">
<toc changed="deleted" committee-id="SSAS00" reported-display-style="strikethrough">
<toc-entry idref="id2DDB6546B8C7431A95B8453998A7F7AD" level="section">139c. Director of Developmental Test and
Evaluation.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id018336E5DB8E48BFA6A92D826800DB23"><enum>(3)</enum><header>Conforming
amendment</header><text>Section 196(f) of such title is amended by striking
<quote>the Under Secretary of Defense for Acquisition, Technology, and
Logistics</quote> and all that follows and inserting <quote>the Under Secretary
of Defense for Acquisition, Technology, and Logistics and the Director of
Developmental Test and Evaluation.</quote>.</text>
</paragraph></subsection><subsection id="id4ACF1EFDC8D745108BBDF554C724153D"><enum>(b)</enum><header>Reports on
developmental testing organizations and personnel</header>
<paragraph id="idF001D6658AC4481686AED2B5C3FD43F6"><enum>(1)</enum><header>Reports by
service acquisition executives</header><text>Not later than 180 days after the
date of the enactment of this Act, the service acquisition executive of each
military department shall submit to the Director of Developmental Test and
Evaluation a report on the extent to which the test organizations of such
military department have in place, or have effective plans to develop, adequate
numbers of personnel with appropriate expertise for each purpose as
follows:</text>
<subparagraph id="id6583E35365E841CB9E0753713E159BEF"><enum>(A)</enum><text>To ensure that
testing requirements are appropriately addressed in the translation of
operational requirements into contract specifications, in the source selection
process, and in the preparation of requests for proposals on all major defense
acquisition programs.</text>
</subparagraph><subparagraph id="idD479FFE18B7648C68CE82B7C8BC547A6"><enum>(B)</enum><text>To participate in
the planning of developmental test and evaluation activities, including the
preparation and approval of a test and evaluation master plan for each major
defense acquisition program.</text>
</subparagraph><subparagraph id="id6E898AA79739497092F44F59ADABD36A"><enum>(C)</enum><text>To participate in
and oversee the conduct of developmental testing, the analysis of data, and the
preparation of evaluations and reports based on such testing.</text>
</subparagraph></paragraph><paragraph id="id8FC0424ED67546C3BDEBAFC6502F7E4D"><enum>(2)</enum><header>First annual
report by Director of Developmental Test and Evaluation</header><text>The first
annual report submitted to Congress by the Director of Developmental Test and
Evaluation under section 139c(e) of title 10, United States Code (as added by
subsection (a)), shall be submitted not later than one year after the date of
the enactment of this Act, and shall include an assessment by the Director of
the reports submitted by the service acquisition executives to the Director
under paragraph (1).</text>
</paragraph></subsection></section><section id="idE5972AC7AD584FE2B7AFB4E01AECBF42"><enum>103.</enum><header>Assessment of
technological maturity of critical technologies of major defense acquisition
programs by the Director of Defense Research and Engineering</header>
<subsection id="IDaa8ec30234f941d68b18bbba7acab734"><enum>(a)</enum><header>Assessment by
Director of Defense Research and Engineering</header>
<paragraph id="id44141884701A4EA397069E45EADFCC6C"><enum>(1)</enum><header>In
general</header><text>Section 139a of title 10, United States Code, is amended
by adding at the end the following new subsection:</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="idCC1C350207124C1AB9BB779AB896E017" reported-display-style="strikethrough" style="OLC">
<subsection id="ID4f6709f0172240a6bbc80d41ac9a7379"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idFF865BEA54C7443291D15F73454A8B23"><enum>(1)</enum><text>The Director of Defense
Research and Engineering shall periodically review and assess the technological
maturity and integration risk of critical technologies of the major defense
acquisition programs of the Department of Defense and report on the findings of
such reviews and assessments to the Under Secretary of Defense for Acquisition,
Technology, and Logistics.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="id961A7E432EBB422BAD63A2399922B237" indent="up1" reported-display-style="strikethrough"><enum>(2)</enum><text>The Director shall
submit to the Secretary of Defense and to Congress each year a report on the
technological maturity and integration risk of critical technologies of the
major defense acquisition programs of the Department of
Defense.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID492e5e97ed3b4edc9d4d3f7d3a3c5dd9"><enum>(2)</enum><header>First annual
report</header><text>The first annual report under subsection (c)(2) of section
139a of title 10, United States Code (as added by paragraph (1)), shall be
submitted to Congress not later than March 1, 2011, and shall address the
results of reviews and assessments conducted by the Director of Defense
Research and Engineering pursuant to subsection (c)(1) of such section (as so
added) during the preceding calendar year.</text>
</paragraph></subsection><subsection id="idA092D66DB4C44445918BBBA4D2995158"><enum>(b)</enum><header>Report on
resources for implementation</header><text>Not later than 120 days after the
date of the enactment of this Act, the Director of Defense Research and
Engineering shall submit to the congressional defense committees a report
describing any additional resources that may be required by the Director, and
by other science and technology elements of the Department of Defense, to carry
out the following:</text>
<paragraph id="idCA5383D2432A402B94F5CEF2A0ABA4B0"><enum>(1)</enum><text>The requirements
under the amendment made by subsection (a).</text>
</paragraph><paragraph id="id93224344EDAB4ECCB4784B5364302A1B"><enum>(2)</enum><text>The technological
maturity assessments required by section 2366b(a) of title 10, United States
Code, as amended by section 202 of this Act.</text>
</paragraph><paragraph id="id6F4D64EF26E0418E98A272BACB011A9C"><enum>(3)</enum><text>The requirements
of Department of Defense Instruction 5000, as revised.</text>
</paragraph></subsection></section><section id="id7D866011DB1F47DBA847187F29ED1E65"><enum>104.</enum><header>Director of
Independent Cost Assessment</header>
<subsection id="ID4897f7a4921e4fee887c3453d8166c61"><enum>(a)</enum><header>Director of
Independent Cost Assessment</header>
<paragraph id="id667AA6DD3D7840F2869E088DD02271F9"><enum>(1)</enum><header>In
general</header><text>Chapter 4 of title 10, United States Code, as amended by
section 102 of this Act, is further amended by inserting after section 139c the
following new section:</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="idCD848BAF0322426394D3289AD986DA63" reported-display-style="strikethrough" style="USC">
<section id="IDc188e44999374c738164dbe851bef663"><enum>139d.</enum><header>Director of
Independent Cost Assessment</header>
<subsection id="IDda2e4c7f48834217a0dd074a5ca25713"><enum>(a)</enum><text>There is a
Director of Independent Cost Assessment in the Department of Defense, appointed
by the President, by and with the advice and consent of the Senate. The
Director shall be appointed without regard to political affiliation and solely
on the basis of fitness to perform the duties of the Director.</text>
</subsection><subsection id="IDf25691cbecc848d8921d3830258f887e"><enum>(b)</enum><text>The Director is
the principal advisor to the Secretary of Defense, the Under Secretary of
Defense for Acquisition, Technology, and Logistics, and the Under Secretary of
Defense (Comptroller) on cost estimation and cost analyses for the acquisition
programs of the Department of Defense and the principal cost estimation
official within the senior management of the Department of Defense. The
Director shall—</text>
<paragraph id="ID91e743cd2d564607bdac1825b7e7bdd7"><enum>(1)</enum><text>prescribe, by
authority of the Secretary of Defense, policies and procedures for the conduct
of cost estimation and cost analysis for the acquisition programs of the
Department of Defense;</text>
</paragraph><paragraph id="IDfcc0b717af4d4336b34ee1b82a800a19"><enum>(2)</enum><text>provide guidance
to and consult with the Secretary of Defense, the Under Secretary of Defense
for Acquisition, Technology, and Logistics, the Under Secretary of Defense
(Comptroller), and the Secretaries of the military departments with respect to
cost estimation in the Department of Defense in general and with respect to
specific cost estimates and cost analyses to be conducted in connection with a
major defense acquisition program under chapter 144 of this title or a major
automated information system program under chapter 144A of this title;</text>
</paragraph><paragraph id="idD80812E05E2E4AEF9B0C6153B57B6AE1"><enum>(3)</enum><text>establish guidance
on confidence levels for cost estimates on major defense acquisition programs
and require the disclosure of all such confidence levels;</text>
</paragraph><paragraph id="ID85004f250d3e496b86f29c9f54348bc7"><enum>(4)</enum><text>monitor and review
all cost estimates and cost analyses conducted in connection with major defense
acquisition programs and major automated information system programs;
and</text>
</paragraph><paragraph id="ID837b161adb5d4c0e9da089835580dce6"><enum>(5)</enum><text>conduct
independent cost estimates and cost analyses for major defense acquisition
programs and major automated information system programs—</text>
<subparagraph id="idDD1B672A02D5452889A4F6020D33862A"><enum>(A)</enum><text>in advance
of—</text>
<clause id="id58FD076289B7417FB8362062858885F0"><enum>(i)</enum><text>any certification
under section 2366a or 2366b of this title;</text>
</clause><clause id="id2AAC15F000EA4DE3B58267DD41B26162"><enum>(ii)</enum><text>any certification
under section 2433(e)(2) of this title; and</text>
</clause><clause id="id031F7AC3C1FB4AEB86FC82B6F447AAA0"><enum>(iii)</enum><text>any report under
section 2445c(f) of this title; and</text>
</clause></subparagraph><subparagraph id="id9258648677254B6CAC21042ED2BB6AC0"><enum>(B)</enum><text>whenever necessary
to ensure that an estimate or analysis under paragraph (4) is unbiased, fair,
and reliable.</text>
</subparagraph></paragraph></subsection><subsection id="ID959dcdcacb0b46bcb77b399d255fb6d6"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id5971B45373724EAEADBB850069969899"><enum>(1)</enum><text>The Director may
communicate views on matters within the responsibility of the Director directly
to the Secretary of Defense and the Deputy Secretary of Defense without
obtaining the approval or concurrence of any other official within the
Department of Defense.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="id2B3A5ECD9D804B54AB953E6643D91341" indent="up1" reported-display-style="strikethrough"><enum>(2)</enum><text>The Director shall
consult closely with, but the Director and the Director’s staff shall be
independent of, the Under Secretary of Defense for Acquisition, Technology, and
Logistics, the Under Secretary of Defense (Comptroller), and all other officers
and entities of the Department of Defense responsible for acquisition and
budgeting.</text>
</paragraph></subsection><subsection id="ID85d950dfc09d471583dbc66b0a2a1625"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id3D126BF7D10D40D0889EC487EE628189"><enum>(1)</enum><text>The Secretary of a
military department shall report promptly to the Director the results of all
cost estimates and cost analyses conducted by the military department and all
studies conducted by the military department in connection with cost estimates
and cost analyses for major defense acquisition programs of the military
department.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="idE45C81918EF34B37B660E77D0C7DA939" indent="up1" reported-display-style="strikethrough"><enum>(2)</enum><text>The Director may
make comments on cost estimates and cost analyses conducted by a military
department for a major defense acquisition program, request changes in such
cost estimates and cost analyses to ensure that they are fair and reliable, and
develop or require the development of independent cost estimates or cost
analyses for such program, as the Director determines to be appropriate.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="id2CB60269F80C4FCBAC820F4F10FC8120" indent="up1" reported-display-style="strikethrough"><enum>(3)</enum><text>The Director shall
have access to any records and data in the Department of Defense (including the
records and data of each military department) that the Director considers
necessary to review in order to carry out the Director's duties under this
section.</text>
</paragraph></subsection><subsection id="ID536981da45b942a5bcae6a13d6f03977"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id3A5411E9620B40D183582AE10C7FED2C"><enum>(1)</enum><text>The Director shall
prepare an annual report summarizing the cost estimation and cost analysis
activities of the Department of Defense during the previous year and assessing
the progress of the Department in improving the accuracy of its costs estimates
and analyses.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="idDAF1F09E04B3441DBB87AB2CD55C9822" indent="up1" reported-display-style="strikethrough"><enum>(2)</enum><text>Each report under
this subsection shall be submitted concurrently to the Secretary of Defense,
the Under Secretary of Defense for Acquisition, Technology, and Logistics, the
Under Secretary of Defense (Comptroller), and Congress not later than 10 days
after the transmission of the budget for the next fiscal year under section
1105 of title 31. The Director shall ensure that a report submitted under this
subsection does not include any information, such as proprietary or source
selection sensitive information, that could undermine the integrity of the
acquisition process.</text>
</paragraph><paragraph changed="deleted" committee-id="SSAS00" id="id142783EAFA854303ACDE33C564707A3B" indent="up1" reported-display-style="strikethrough"><enum>(3)</enum><text>The Secretary may
comment on any report of the Director to Congress under this subsection.</text>
</paragraph></subsection><subsection id="ID50954166452046feb60783134291ba82"><enum>(f)</enum><text>The President
shall include in the budget transmitted to Congress pursuant to section 1105 of
title 31 for each fiscal year a separate statement of estimated expenditures
and proposed appropriations for that fiscal year for the Director of
Independent Cost Assessment in carrying out the duties and responsibilities of
the Director under this section.</text>
</subsection><subsection id="IDa4edaa5eaf0548c0ba80ceb9a8314b61"><enum>(g)</enum><text>The Secretary of
Defense shall ensure that the Director has sufficient professional staff of
military and civilian personnel to enable the Director to carry out the duties
and responsibilities of the Director under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id817273B4677F42288AD28E439753EDB5"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title, as so amended, is further amended by inserting after the item
relating to section 139c the following new item:</text>
<quoted-block changed="deleted" committee-id="SSAS00" id="idb6090895-e89b-4990-a752-5f79680dfe14" reported-display-style="strikethrough" style="USC">
<toc changed="deleted" committee-id="SSAS00" reported-display-style="strikethrough">
<toc-entry idref="IDc188e44999374c738164dbe851bef663" level="section">139d. Director of Independent Cost
Assessment.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC13E6F397F164634A9AA147F249AEFD4"><enum>(b)</enum><header>Report on
monitoring of operating and support costs for MDAPs</header>
<paragraph id="id9BDDD3C9C4324F569416779E24833560"><enum>(1)</enum><header>Report to
Secretary of Defense</header><text>Not later than one year after the date of
the enactment of this Act, the Director of Independent Cost Assessment under
section 139d of title 10 United States Code (as added by subsection (a)), shall
review existing systems and methods of the Department of Defense for tracking
and assessing operating and support costs on major defense acquisition programs
and submit to the Secretary of Defense a report on the finding and
recommendations of the Director as a result of the review.</text>
</paragraph><paragraph id="idBAEC8A35AB1B4A5EA3F462BC0DB71C8A"><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="IDbc1c0094378945d7b4858b4dfb48ecce"><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="IDa8a12774883442738379404c98dee5b8"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="IDed34a8cc874145d9b5cdf8f26ed062ce"><enum>(1)</enum><text>Section
2306b(i)(1)(B) of title 10, United States Code, is amended by striking
<quote>Cost Analysis Improvement Group of the Department of Defense</quote> and
inserting <quote>Director of Independent Cost Assessment</quote>.</text>
</paragraph><paragraph id="IDd3112805690046ee92b61f1d2ca6d2ee"><enum>(2)</enum><text>Section
2366a(a)(4) of such title is amended by striking “has been submitted” and
inserting <quote>has been approved by the Director of Independent Cost
Assessment</quote>.</text>
</paragraph><paragraph id="ID0e09d44cff7b4817983462e78f514c46"><enum>(3)</enum><text>Section
2366b(a)(1)(C) of such title is amended by striking <quote>have been developed
to execute</quote> and inserting <quote>have been approved by the Director of
Independent Cost Assessment to provide for the execution of</quote>.</text>
</paragraph><paragraph id="IDb0156db35611473cae81d47df8a766ce"><enum>(4)</enum><text>Section
2433(e)(2)(B)(iii) of such title is amended by striking <quote>are
reasonable</quote> and inserting <quote>have been determined by the Director of
Independent Cost Assessment to be reasonable</quote>.</text>
</paragraph><paragraph id="id823D41F5AB094913B3AAF3ECC435A4EA"><enum>(5)</enum><text>Subparagraph (A)
of section 2434(b)(1) of such title is amended to read as follows:</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="id9B3BF41FD85A4D2EB4F0B629B5784321" reported-display-style="strikethrough" style="OLC">
<subparagraph id="id00BF1A0A6C0549748F132EF5810399E4"><enum>(A)</enum><text>be prepared or
approved by the Director of Independent Cost Assessment;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDa9cbccc0c1a047c69814d9faf021d1e6"><enum>(6)</enum><text>Section
2445c(f)(3) of such title is amended by striking <quote>are reasonable</quote>
and inserting <quote>have been determined by the Director of Independent Cost
Assessment to be reasonable</quote>.</text>
</paragraph></subsection></section><section id="id3C24623F08F14A089037313AC3875D6D"><enum>105.</enum><header>Role of the
commanders of the combatant commands in identifying joint military
requirements</header><text display-inline="no-display-inline">Section 181(d) of
title 10, United States Code, is amended—</text>
<paragraph id="idB25FB15FC9934DD090945A6A00DFA674"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>The Under Secretary</quote>; and</text>
</paragraph><paragraph id="idF62AE030D9F9420A8C1C52D61F3D3FAB"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="id35CE45A997074BE7BC0BF58D8247C4A3" reported-display-style="strikethrough" style="OLC">
<paragraph id="idD8A74546C43145A7AFA5618592511159" indent="up1"><enum>(2)</enum><text>The Council shall
seek and consider input from the commanders of the combatant commands in
carrying out its mission under paragraphs (1) and (2) of subsection (b) and in
conducting periodic reviews in accordance with the requirements of subsection
(e).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>II</enum><header>Acquisition
Policy</header>
<section id="id081AD31FE9CD4379B83D9BCB05B4F49C"><enum>201.</enum><header>Consideration
of trade-offs among cost, schedule, and performance in the acquisition of major
weapon systems</header>
<subsection id="id503CB45E1F0947A4834D6790D6A00C02"><enum>(a)</enum><header>Consideration of
trade-offs</header>
<paragraph id="idFFB22B8FDC4344EF850BB608501275EC"><enum>(1)</enum><header>In
general</header><text>The Secretary of Defense shall develop and implement
mechanisms to ensure that trade-offs between cost, schedule, and performance
are considered as part of the process for developing requirements for major
weapon systems.</text>
</paragraph><paragraph id="id4F7CC92882E044808D36BDB8D356318C"><enum>(2)</enum><header>Elements</header><text>The
mechanisms required under this subsection shall ensure, at a minimum,
that—</text>
<subparagraph id="idBBD0C6C0D43C41FDBD109667DF641B79"><enum>(A)</enum><text>Department of
Defense officials responsible acquisition, budget, and cost estimating
functions are provided an appropriate opportunity to develop estimates and
raise cost and schedule matters before performance requirements are established
for major weapon systems; and</text>
</subparagraph><subparagraph id="idEFB9D7A8C6294E41B2633C24896631F6"><enum>(B)</enum><text>consideration is
given to fielding major weapon systems through incremental or spiral
acquisition, while deferring technologies that are not yet mature, and
capabilities that are likely to significantly increase costs or delay
production, until later increments or spirals.</text>
</subparagraph></paragraph><paragraph id="id768B579E9CEC43F48DEEFB9EC966EC8C"><enum>(3)</enum><header>Major weapons
system defined</header><text>In this subsection, the term <term>major weapon
system</term> has the meaning given that term in section 2379(d) of title 10,
United States Code.</text>
</paragraph></subsection><subsection id="idCBE2A66F2C924270AA6D3D6855D111BD"><enum>(b)</enum><header>Duties of Joint
Requirements Oversight Council</header><text>Section 181(b)(1) of title 10,
United States Code, is amended—</text>
<paragraph id="idE1462916531E447DAD7FC314FC2EBE2A"><enum>(1)</enum><text>in subparagraph
(A), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id63A22C4CF4EA4420A82D80C96B40BFEA"><enum>(2)</enum><text>in subparagraph
(B), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</paragraph><paragraph id="idEB2C54D610ED49C9B32CD734D7C7138B"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="idBDCB58315E464534AAEE497880CF9C3F" reported-display-style="strikethrough" style="OLC">
<subparagraph id="id2084DFD5EC2F443E90897E692DB9F305"><enum>(C)</enum><text>in ensuring the
consideration of trade-offs among cost, schedule and performance for joint
military
requirements;</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id738177422D184EDDB45B47E8AA4DDBD4"><enum>202.</enum><header>Preliminary
design review for major defense acquisition programs</header><text display-inline="no-display-inline">Section 2366b(a) of title 10, United States
Code, is amended—</text>
<paragraph id="idC94A6C276EEC43C9A933F9EEF52F03FF"><enum>(1)</enum><text>in paragraph (1),
by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id81A87A5143424D98915229B3F29E922B"><enum>(2)</enum><text>by redesignating
paragraph (2) as paragraph (3);</text>
</paragraph><paragraph id="idA4D00723432C4DCD8C4BA07F6758CDCA"><enum>(3)</enum><text>by inserting after
paragraph (1) the following new paragraph (2):</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="idC9042D1453D544E18C3782B6EFBF1A73" reported-display-style="strikethrough" style="OLC">
<paragraph id="id63EEBBE2E99F4031BBA83D066E0BE348"><enum>(2)</enum><text>has received a
preliminary design review (PDR) and conducted a formal post-preliminary design
review assessment, and certifies on the basis of such assessment that the
program demonstrates a high likelihood of accomplishing its intended mission;
and</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1CA7F47997B04F938B45E91C248DF9D8"><enum>(4)</enum><text>in paragraph (3),
as redesignated by paragraph (2) of this section—</text>
<subparagraph id="idD521AF9325104AB2938EE8D847FF2764"><enum>(A)</enum><text>in subparagraph
(D), by striking the semicolon and inserting <quote>, as determined by the
Milestone Decision Authority on the basis of an independent review and
assessment by the Director of Defense Research and Engineering;
and</quote>;</text>
</subparagraph><subparagraph id="id90EC57CA68724038B884B076CEF0466E"><enum>(B)</enum><text>by striking
subparagraph (E); and</text>
</subparagraph><subparagraph id="idFE77B648E8144C6D9B31A9FC4F070C21"><enum>(C)</enum><text>by redesignating
subparagraph (F) as subparagraph (E).</text>
</subparagraph></paragraph></section><section id="id07C5AFADE8A6479EAA27F9D1B3513CF4"><enum>203.</enum><header>Maximization of
competition throughout the life cycle of major defense acquisition
programs</header>
<subsection id="idCFB9ECB94BB94D67996FDF478DD07A9F"><enum>(a)</enum><header>Maximization of
competition</header><text>The Secretary of Defense shall ensure that the
acquisition plan for each major defense acquisition program includes measures
to maximize competition at both the prime contract level and the subcontract
level of such program throughout the life cycle of such program.</text>
</subsection><subsection id="id6940883496A447AEB562AA67FBA5F302"><enum>(b)</enum><header>Measures To
maximize competition</header><text>The measures to maximize competition
utilized for purposes of subsection (a) may include, but are not limited to,
measures to achieve the following, where cost-effective:</text>
<paragraph id="id372C1321FE7C4F12B438FCA6DE0320B6"><enum>(1)</enum><text>Competitive
prototyping.</text>
</paragraph><paragraph id="id447240DAF3044D7C8C3BF652425A37A3"><enum>(2)</enum><text>Dual-sourcing.</text>
</paragraph><paragraph id="id3C71B4F40D674C22B9152A514837120D"><enum>(3)</enum><text>Funding of a
second source for interchangeable, next-generation prototype systems or
subsystems.</text>
</paragraph><paragraph id="id0A6D4BECBAFE4C2E87BBA0B28C311365"><enum>(4)</enum><text>Utilization of
modular, open architectures to enable competition for upgrades.</text>
</paragraph><paragraph id="id0605F17FC9894F57B08A64A1956ADA01"><enum>(5)</enum><text>Periodic
competitions for subsystem upgrades.</text>
</paragraph><paragraph id="id6754DA3A70F14FE990377293D4C5B263"><enum>(6)</enum><text>Licensing of
additional suppliers.</text>
</paragraph><paragraph id="id1A8EFCAAF91643ECB0A7B62473957E7D"><enum>(7)</enum><text>Requirements for
Government oversight or approval of make or buy decisions to ensure competition
at the subsystem level.</text>
</paragraph><paragraph id="id680D8484BDC34AB191C6BD16ADAD1997"><enum>(8)</enum><text>Periodic system or
program reviews to address long-term competitive effects of program
decisions.</text>
</paragraph><paragraph id="idE0E06AB7DB6141C6805AA148C5923C06"><enum>(9)</enum><text>Consideration of
competition at the subcontract level and in make or buy decisions as a factor
in proposal evaluations.</text>
</paragraph></subsection><subsection id="id91B897AB815F433A8FE82BEDC81A7450"><enum>(c)</enum><header>Competitive
prototyping</header><text>The Secretary of Defense shall modify the acquisition
regulations of the Department of Defense to ensure with respect to competitive
prototyping for major defense acquisition programs the following:</text>
<paragraph id="id31FD0C0CAD314A2F949C25263C98FA42"><enum>(1)</enum><text>That the
acquisition strategy for each major defense acquisition program provides for
two or more competing teams to produce prototypes before Milestone B approval
(or Key Decision Point B approval in the case of a space program) unless the
milestone decision authority for such program waives the requirement on the
basis of a determination that, but for such waiver, the Department would be
unable to meet critical national security objectives.</text>
</paragraph><paragraph id="id106BE690E85F4F62A404F481C29A8B36"><enum>(2)</enum><text>That if the
milestone decision authority waives the requirement for prototypes produced by
two or more teams for a major defense acquisition program under paragraph (1),
the acquisition strategy for the program provides for the production of at
least one prototype before Milestone B approval (or Key Decision Point B
approval in the case of a space program) unless the milestone decision
authority waives such requirement on the basis of a determination that, but for
such waiver, the Department would be unable to meet critical national security
objectives.</text>
</paragraph><paragraph id="id7F7BD2CC42B049AEA555CCFC3F2DCDBB"><enum>(3)</enum><text>That whenever a
milestone decision authority authorizes a waiver under paragraph (1) or (2),
the waiver, the determination upon which the waiver is based, and the reasons
for the determination are submitted in writing to the congressional defense
committees not later than 30 days after the waiver is authorized.</text>
</paragraph></subsection><subsection id="id8F731F9764CD4F59B7FF0F037E38E0D5"><enum>(d)</enum><header>Major defense
acquisition program defined</header><text>In this section, the term <term>major
defense acquisition program</term> has the meaning given that term in section
2430 of title 10, United States Code.</text>
</subsection><subsection id="id5D0421E200314E22A9745EADF165D0E1"><enum>(e)</enum><header>Applicability</header><text>This
section shall apply to any acquisition plan for a major defense acquisition
program that is developed or revised on or after the date that is 60 days after
the date of the enactment of this Act.</text>
</subsection></section><section id="idE8F8CD7A7C804C6DA6E1C34D4F9A26F1"><enum>204.</enum><header>Critical cost
growth in major defense acquisition programs</header>
<subsection id="id68D989B5ED4F475D9FC37DCADE6346DA"><enum>(a)</enum><header>Authorized
actions in event of critical cost growth</header><text>Section 2433(e)(2) of
title 10, United States Code, is amended—</text>
<paragraph id="idA083185E6EFE48E8854BB31FEE6F6607"><enum>(1)</enum><text>by redesignating
subparagraph (C) as subparagraph (D);</text>
</paragraph><paragraph id="idED79A961A942402CB8A3FC5E5D6849AF"><enum>(2)</enum><text>by striking
subparagraph (B); and</text>
</paragraph><paragraph id="id48EF2B9F17E44506B90CE8BD36C91D2D"><enum>(3)</enum><text>by inserting after
subparagraph (A) the following new subparagraphs (B) and (C):</text>
<quoted-block changed="deleted" committee-id="SSAS00" display-inline="no-display-inline" id="id89A4494494DA4CAD908F2935C7129B76" reported-display-style="strikethrough" style="OLC">
<subparagraph id="id6B0A310B945B472AAB4BCA2A815D77D6" indent="up1"><enum>(B)</enum><text>terminate such
acquisition program, unless the Secretary determines that the continuation of
such program is essential to the national security of the United States and
submits a written certification in accordance with subparagraph (C)(i)
accompanied by a report setting forth the assessment carried out pursuant to
subparagraph (A) and the basis for each determination made in accordance with
clauses (I) through (IV) of subparagraph (C)(i), together with supporting
documentation;</text>
</subparagraph><subparagraph id="idF3F52FC1C3244039B0B6B5B1A7E7BF53" indent="up1"><enum>(C)</enum><text>if the program is
not terminated—</text>
<clause id="id5A258D736140460BB7F18304B6026B7D"><enum>(i)</enum><text>submit to
Congress, before the end of the 60-day period beginning on the day the Selected
Acquisition Report containing the information described in subsection (g) is
required to be submitted under section 2432(f) of this title, a written
certification stating that—</text>
<subclause id="idE8364DDF7FE14935AFEEF2A38E5B997E"><enum>(I)</enum><text>such acquisition
program is essential to national security;</text>
</subclause><subclause id="id60A731921CBC4B6BA738C5E00625B7B7"><enum>(II)</enum><text>there are no
alternatives to such acquisition program which will provide equal or greater
capability to meet a joint military requirement (as that term is defined in
section 181(g)(1) of this title) at less cost;</text>
</subclause><subclause id="id8DEA3805258244FD845F23F7ACD72090"><enum>(III)</enum><text>the new
estimates of the program acquisition unit cost or procurement unit cost were
arrived at in accordance with the requirements of section 139d of this title
and are reasonable; and</text>
</subclause><subclause id="idF89403E4210149D8938B3748F0EA55A6"><enum>(IV)</enum><text>the management
structure for the acquisition program is adequate to manage and control program
acquisition unit cost or procurement unit cost;</text>
</subclause></clause><clause id="id672C3ACFB0FC47409B38683DC603799C"><enum>(ii)</enum><text>rescind the most
recent Milestone approval (or Key Decision Point approval in the case of a
space program) for such program and withdraw any associated certification under
section 2366a or 2366b of this title; and</text>
</clause><clause id="idBCA2E1809FF0461DB15B96DA5ACA0735"><enum>(iii)</enum><text>require a new
Milestone approval (or Key Decision Point approval in the case of a space
program) for such program before entering into a new contract, exercising an
option under an existing contract, or otherwise extending the scope of an
existing contract under such program;
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id2EA56A0358444D5C9410B35AF0877643"><enum>(b)</enum><header>Total
expenditure for procurement resulting in treatment as
MDAP</header><text>Section 2430(a)(2) of such title is amended by inserting
<quote>, including all planned increments or spirals,</quote> after <quote>an
eventual total expenditure for procurement</quote>.</text>
</subsection></section><section id="idEAEC5A06E26A4EA1B65A72AEFA25D522"><enum>205.</enum><header>Organizational
conflicts of interest in the acquisition of major weapon systems</header>
<subsection id="ID971291ebfcf248a493fdcca07058d962"><enum>(a)</enum><header>Revised
regulations required</header><text>Not later than 180 days after the date of
the enactment of this Act, the Under Secretary of Defense for Acquisition,
Technology, and Logistics shall revise the Defense Supplement to the Federal
Acquisition Regulation to address organizational conflicts of interest by
contractors in the acquisition of major weapon systems.</text>
</subsection><subsection id="ID10074dbd2c88483d9e64ea815a13b584"><enum>(b)</enum><header>Elements</header><text>The
revised regulations required by subsection (a) shall, at a minimum—</text>
<paragraph id="ID0cbe30dfb46149ef930e01ec39caba36"><enum>(1)</enum><text>ensure that the
Department of Defense receives advice on systems architecture and systems
engineering matters with respect to major weapon systems from federally funded
research and development centers or other sources independent of the prime
contractor;</text>
</paragraph><paragraph id="IDa6c510736eb04e4b87b6b79b5ee50101"><enum>(2)</enum><text>require that a
contract for the performance of systems engineering and technical assistance
(SETA) functions with regard to a major weapon system contains a provision
prohibiting the contractor or any affiliate of the contractor from having a
direct financial interest in the development or construction of the weapon
system or any component thereof; and</text>
</paragraph><paragraph id="ID3892b3200c0b44ab96a22cf31f4e428d"><enum>(3)</enum><text>provide for fair
and objective <quote>make-buy</quote> decisions by the prime contractor on a
major weapon system by—</text>
<subparagraph id="IDc2e8ad7714b945b2acf24042e75017c0"><enum>(A)</enum><text>requiring prime
contractors to give full and fair consideration to qualified sources other than
the prime contractor for the development or construction of major subsystems
and components of the weapon system;</text>
</subparagraph><subparagraph id="ID7f744c10d079457eb7fb86e1a6f989ba"><enum>(B)</enum><text>providing for
government oversight of the process by which prime contractors consider such
sources and determine whether to conduct such development or construction
in-house or through a subcontract;</text>
</subparagraph><subparagraph id="ID2dd9f33e41c843bcaf3cb537307eb30a"><enum>(C)</enum><text>where appropriate,
requiring that program managers, rather than prime contractors, make the
determination whether such development or construction should be conducted
in-house or through a subcontract; and</text>
</subparagraph><subparagraph id="ID78412730662f49bea7b485ae166630c9"><enum>(D)</enum><text>providing for the
consideration of prime contractors <quote>make-buy</quote> decisions in past
performance evaluations.</text>
</subparagraph></paragraph></subsection><subsection id="IDe1b700e75b964f0e8c9eb3f1e29bc381"><enum>(c)</enum><header>Organizational
Conflict of Interest Review Board</header>
<paragraph id="idB8B0A03136664D489AB88BCB8CB43DE1"><enum>(1)</enum><header>Establishment
required</header><text>Not later than 90 days after the date of the enactment
of this Act, the Secretary of Defense shall establish within the Department of
Defense a board to be known as the <quote>Organizational Conflict of Interest
Review Board</quote>.</text>
</paragraph><paragraph id="idE0F754DEB7CF4CBCB32A0844C74693B1"><enum>(2)</enum><header>Duties</header><text>The
Board shall have the following duties:</text>
<subparagraph id="IDc05cf2f7c60c43b486735b996fdc1f22"><enum>(A)</enum><text>To advise the
Under Secretary of Defense for Acquisition, Technology, and Logistics on
policies relating to organizational conflicts of interest in the acquisition of
major weapon systems.</text>
</subparagraph><subparagraph id="IDc18b65773dcb4891a5fa096aacf98a75"><enum>(B)</enum><text>To advise program
managers on steps to comply with the requirements of the revised regulations
required by this section and to address organizational conflicts of interest in
the acquisition of major weapon systems.</text>
</subparagraph><subparagraph id="IDe7cb23a84d5046eca64e5c6a49a1fb66"><enum>(C)</enum><text>To advise
appropriate officials of the Department on organizational conflicts of interest
arising in proposed mergers of defense contractors.</text>
</subparagraph></paragraph></subsection><subsection id="IDa30f575e49714ae4b16b4adbd5bef1ab"><enum>(d)</enum><header>Major weapon
system defined</header><text>In this section, the term <term>major weapon
system</term> has the meaning given that term in section 2379(d) of title 10,
United States Code.</text>
</subsection></section><section id="id920AC611A9DE487687D540C5E8252770"><enum>206.</enum><header>Awards for
Department of Defense personnel for excellence in the acquisition of products
and services</header>
<subsection id="id3D6CF806230641958B1B0A5A03503D97"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary of Defense shall commence carrying out a program to
recognize excellent performance by individuals and teams of members of the
Armed Forces and civilian personnel of the Department of Defense in the
acquisition of products and services for the Department of Defense.</text>
</subsection><subsection id="idB82F3425C04B458CBEC0A955EC8B4F00"><enum>(b)</enum><header>Elements</header><text>The
program required by subsection (a) shall include the following:</text>
<paragraph id="id3A4188E7859942E4873C2FB569FD6636"><enum>(1)</enum><text>Procedures for the
nomination by the personnel of the military departments and the Defense
Agencies of individuals and teams of members of the Armed Forces and civilian
personnel of the Department of Defense for eligibility for recognition under
the program.</text>
</paragraph><paragraph id="id86061D3F621E4FD8A21B103C42F14580"><enum>(2)</enum><text>Procedures for the
evaluation of nominations for recognition under the program by one or more
panels of individuals from the government, academia, and the private sector who
have such expertise, and are appointed in such manner, as the Secretary shall
establish for purposes of the program.</text>
</paragraph></subsection><subsection id="idFF81AF99A1C24C519F45777F4E89D557"><enum>(c)</enum><header>Award of cash
bonuses</header><text>As part of the program required by subsection (a), the
Secretary may award to any individual recognized pursuant to the program a cash
bonus authorized by any other provision of law to the extent that the
performance of such individual so recognized warrants the award of such bonus
under such provision of law.</text>
</subsection></section>
1.Short title; table of
contents
(a)This Act may be cited
as the Weapon Systems Acquisition
Reform Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Definitions.
TITLE I—Acquisition
Organization
Sec. 101. 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 and
critical design review for major defense acquisition programs.
Sec. 203. Ensuring competition throughout the
life cycle of major defense acquisition programs.
Sec. 204. Critical cost growth in major defense
acquisition programs.
Sec. 205. Organizational conflicts of interest
in the acquisition of major weapon systems.
Sec. 206. Awards for Department of Defense
personnel for excellence in the acquisition of products and
services.
2.In this Act:
(1)The term congressional defense
committees has the meaning given that term in section 101(a)(16) of
title 10, United States Code.
(2)The term major
defense acquisition program has the meaning given that term in section
2430 of title 10, United States Code.
<enum>I</enum><header>Acquisition
Organization</header>
<section id="id1d0a095b-c673-4e3b-9b98-a3a5f5f9adf8"><enum>101.</enum><header>Reports on systems
engineering capabilities of the Department of Defense</header>
<subsection id="idd8a3908e-6502-4448-991e-458a6b7b1284"><enum>(a)</enum><header>Reports by service
acquisition executives</header><text>Not later than 180 days after the date of
the enactment of this Act, the service acquisition executive of each military
department shall submit to the Under Secretary of Defense for Acquisition,
Technology, and Logistics a report setting forth the following:</text>
<paragraph id="idc731a045-f362-4d80-bf39-8233c4d72367"><enum>(1)</enum><text>A description of the
extent to which such military department has in place development planning
organizations and processes staffed by adequate numbers of personnel with
appropriate training and expertise to ensure that—</text>
<subparagraph id="id5e29a0a7-1d12-463b-890e-26e81f3b6301"><enum>(A)</enum><text>key requirements,
acquisition, and budget decisions made for each major weapon system prior to
Milestones A and B are supported by a rigorous systems analysis and systems
engineering process;</text>
</subparagraph><subparagraph id="id68816aed-0466-4233-97ef-59aee6fc89fc"><enum>(B)</enum><text>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 id="idbba9260e-c5eb-4eac-901e-66d1148f38ed"><enum>(C)</enum><text>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 id="id61e32608-6540-4db2-a89f-ee55c1827764"><enum>(2)</enum><text>A description of the
actions that such military department has taken, or plans to take, to—</text>
<subparagraph id="id2049c65c-aeb8-4642-9a3a-b024ea6f22fa"><enum>(A)</enum><text>establish needed
development planning and systems engineering organizations and processes;
and</text>
</subparagraph><subparagraph id="id4b198ee3-be92-4594-96eb-44d44498933f"><enum>(B)</enum><text>attract, develop, retain,
and reward systems engineers with appropriate levels of hands-on experience and
technical expertise to meet the needs of such military department.</text>
</subparagraph></paragraph></subsection><subsection id="idb784a7b9-e723-4352-a072-06975796a0ea"><enum>(b)</enum><header>Report by Under
Secretary of Defense for Acquisition, Technology, and
Logistics</header><text>Not later than 270 days after the date of the enactment
of this Act, the Under Secretary of Defense for Acquisition, Technology, and
Logistics shall submit to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representatives a report on the
system engineering capabilities of the Department of Defense. The report shall
include, at a minimum, the following:</text>
<paragraph id="id2cef59b2-117b-4126-ae19-f795482cf0f1"><enum>(1)</enum><text>An assessment by the
Under Secretary of the reports submitted by the service acquisition executives
pursuant to subsection (a) and of the adequacy of the actions that each
military department has taken, or plans to take, to meet the systems
engineering and development planning needs of such military department.</text>
</paragraph><paragraph id="idd4ed01e8-ec77-4f16-bc71-2411478fb76d"><enum>(2)</enum><text>An assessment of each of
the recommendations of the report on Pre-Milestone A and Early-Phase Systems
Engineering of the Air Force Studies Board of the National Research Council,
including the recommended checklist of systems engineering issues to be
addressed prior to Milestones A and B, and the extent to which such
recommendations should be implemented throughout the Department of
Defense.</text>
</paragraph></subsection></section><section id="idbe311f2f-e6b8-4e1b-b304-c9b7001eea38"><enum>102.</enum><header>Director of
Developmental Test and Evaluation</header>
<subsection id="idaaf72490-513e-459b-90b3-6a4020300671"><enum>(a)</enum><header>Establishment of
position</header>
<paragraph id="id50d1b83e-ab6c-40cb-80f9-2555742cbb31"><enum>(1)</enum><header>In
general</header><text>Chapter 4 of title 10, United States Code, is amended by
inserting after section 139b the following new section:</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idf1c4e1ff-0047-4836-98ce-e4e38915b23d" reported-display-style="italic" style="USC">
<section id="id72e924f8-96b9-4c7f-8b10-d8e4f92c6f22"><enum>139c.</enum><header>Director of
Developmental Test and Evaluation</header>
<subsection id="id23378eb7-55ac-4548-a111-16bb30f31206"><enum>(a)</enum><text>There is a Director of
Developmental Test and Evaluation, who shall be appointed by the Secretary of
Defense from among individuals with an expertise in acquisition and
testing.</text>
</subsection><subsection id="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>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 changed="added" committee-id="SSAS00" id="idA7A8D2CB74CC4C138D922CF514107512" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The individual serving as
the Director of Developmental Test and Evaluation may also serve concurrently
as the Director of the Department of Defense Test Resource Management Center
under section 196 of this title.</text>
</paragraph><paragraph changed="added" committee-id="SSAS00" id="id3f626a9b-84a7-4899-a5d9-f5197b31968e" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The Director shall be
subject to the supervision of the Under Secretary of Defense for Acquisition,
Technology, and Logistics and shall report to the Under Secretary.</text>
</paragraph><paragraph changed="added" committee-id="SSAS00" id="id83AD5006312747D2A5A983D57D1FC70E" indent="up1" reported-display-style="italic"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id6C4394AF3F954E4D87494B5041F1E146"><enum>(A)</enum><text>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 changed="added" committee-id="SSAS00" id="idE69CF7BFDFCB49109CEB55D08A82E7F1" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>The guidance under this
paragraph shall ensure, at a minimum, that—</text>
<clause id="id8DE38581BE8C4B738F61C085C97204A1"><enum>(i)</enum><text>developmental test and
evaluation requirements are fully integrated into the Systems Engineering
Master Plan for each major defense acquisition program; and</text>
</clause><clause id="id97674B3A189B4E9AA66D0A75D7BF6854"><enum>(ii)</enum><text>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 id="ida905a1a4-d3fa-4bf3-a650-bb5363b021b1"><enum>(c)</enum><text>The Director of
Developmental Test and Evaluation shall—</text>
<paragraph id="id5128a370-9d01-4ee2-b567-6700c0249559"><enum>(1)</enum><text>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 id="id1f0024a6-2fa1-4aed-a333-f5149afbd21c"><enum>(2)</enum><text>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 id="idc54a0a8a-fb6e-4c97-8648-e00b7728e2b8"><enum>(3)</enum><text>review and approve the
test and evaluation master plan for each major defense acquisition program of
the Department of Defense;</text>
</paragraph><paragraph id="id448accab-5ea2-446e-bbd1-ee50845f8b5b"><enum>(4)</enum><text>supervise the activities
of the Director of the Department of Defense Test Resource Management Center
under section 196 of this title, 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 id="idffcfae77-719f-48e8-b59f-8d9b5279a21a"><enum>(5)</enum><text>review the organizations
and capabilities of the military departments with respect to developmental test
and evaluation and identify needed changes or improvements to such
organizations and capabilities; and</text>
</paragraph><paragraph id="id83e0176d-8a9c-451c-a8cb-9876c490a433"><enum>(6)</enum><text>perform such other
activities relating to the developmental test and evaluation activities of the
Department of Defense as the Under Secretary of Defense for Acquisition,
Technology, and Logistics may prescribe.</text>
</paragraph></subsection><subsection id="idfeb42252-34fd-4a2f-827d-ee1d09ca7ca0"><enum>(d)</enum><text>The Director of
Developmental Test and Evaluation shall have access to all records and data of
the Department of Defense (including the records and data of each military
department) that the Director considers necessary in order to carry out the
Director's duties under this section.</text>
</subsection><subsection id="idc650ca71-e25a-4aba-9ca6-9ebbb65d2e05"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idEE39267F863C4370B54DBE2775DB68EE"><enum>(1)</enum><text>The Director of
Developmental Test and Evaluation shall submit to Congress each year a report
on the developmental test and evaluation activities of the 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 changed="added" committee-id="SSAS00" id="id3CB9B45224D94810AD1EE631600A4BCC" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>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 changed="added" committee-id="SSAS00" id="idA1C81296DEDC47B28EE8CB704D303023" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>An assessment of the
organization and capabilities of the Department of Defense for test and
evaluation.</text>
</subparagraph></paragraph><paragraph changed="added" committee-id="SSAS00" id="id76D10015C9264756803D180985003ED6" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>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 id="id1683697a-e30d-4a8c-9077-cc8de360ee67"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title is amended by inserting after the item relating to section 139b the
following new item:</text>
<quoted-block changed="added" committee-id="SSAS00" id="ida3387d60-d963-48e1-9c66-0293a4a7a915" reported-display-style="italic" style="USC">
<toc changed="added" committee-id="SSAS00" reported-display-style="italic">
<toc-entry idref="id2DDB6546B8C7431A95B8453998A7F7AD" level="section">139c. Director of Developmental Test and
Evaluation.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id273bf728-b5df-4c23-a8a7-7b1dc2942c5d"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph id="id36B2623C13544406B3564F4F6ED20439"><enum>(A)</enum><text>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 id="id79FEC3ACACE34A3980E5B6E4AF9BA8A2"><enum>(B)</enum><text>Section 139(b) of such
title is amended—</text>
<clause id="idB5CABDCC7F3A4D37896D7D08F138F53F"><enum>(i)</enum><text>by redesignating
paragraphs (4) through (6) as paragraphs (5) through (7), respectively;
and</text>
</clause><clause id="id4DF0C4265996402C998099018AB055DA"><enum>(ii)</enum><text>by inserting after
paragraph (3) the following new paragraph (4):</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idCACDC207A7BD4B2B86CA23D046973E09" reported-display-style="italic" style="OLC">
<paragraph id="id9B2279EC1BB445FD9B0CDE3E2A7DB682"><enum>(4)</enum><text>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 id="id41255093-116e-4dcd-987f-5025136bd9c2"><enum>(b)</enum><header>Reports on
developmental testing organizations and personnel</header>
<paragraph id="ida7365359-4ae3-4706-9921-2b58806cf980"><enum>(1)</enum><header>Reports by service
acquisition executives</header><text>Not later than 180 days after the date of
the enactment of this Act, the service acquisition executive of each military
department shall submit to the Director of Developmental Test and Evaluation a
report on the extent to which the test organizations of such military
department have in place, or have effective plans to develop, adequate numbers
of personnel with appropriate expertise for each purpose as follows:</text>
<subparagraph id="id17b43a3d-c664-47fb-a3a4-d335492aaf07"><enum>(A)</enum><text>To ensure that testing
requirements are appropriately addressed in the translation of operational
requirements into contract specifications, in the source selection process, and
in the preparation of requests for proposals on all major defense acquisition
programs.</text>
</subparagraph><subparagraph id="id4b921d56-9f89-4956-8fa2-65f1c20c42a0"><enum>(B)</enum><text>To participate in the
planning of developmental test and evaluation activities, including the
preparation and approval of a test and evaluation master plan for each major
defense acquisition program.</text>
</subparagraph><subparagraph id="id7905fcb2-c0de-49d9-9fae-89118c44da9b"><enum>(C)</enum><text>To participate in and
oversee the conduct of developmental testing, the analysis of data, and the
preparation of evaluations and reports based on such testing.</text>
</subparagraph></paragraph><paragraph id="id467fe12c-ca29-45dc-8ecb-ede489cb962e"><enum>(2)</enum><header>First annual report by
Director of Developmental Test and Evaluation</header><text>The first annual
report submitted to Congress by the Director of Developmental Test and
Evaluation under section 139c(e) of title 10, United States Code (as added by
subsection (a)), shall be submitted not later than one year after the date of
the enactment of this Act, and shall include an assessment by the Director of
the reports submitted by the service acquisition executives to the Director
under paragraph (1).</text>
</paragraph></subsection></section><section id="id4dfdd848-2ee6-4734-a371-4830a7fb4346"><enum>103.</enum><header>Assessment of
technological maturity of critical technologies of major defense acquisition
programs by the Director of Defense Research and Engineering</header>
<subsection id="idadf688e3-d1db-4b5e-8617-2dc4786f40a7"><enum>(a)</enum><header>Assessment by Director
of Defense Research and Engineering</header>
<paragraph id="idc9071371-869c-4c17-83e8-dbf9e19cd1c4"><enum>(1)</enum><header>In
general</header><text>Section 139a of title 10, United States Code, is amended
by adding at the end the following new subsection:</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idc5c15595-a3fd-45c5-a794-2c81bb630150" reported-display-style="italic" style="OLC">
<subsection 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>The Director of
Defense Research and Engineering shall periodically review and assess the
technological maturity and integration risk of critical technologies of the
major defense acquisition programs of the Department of Defense and report on
the findings of such reviews and assessments to the Under Secretary of Defense
for Acquisition, Technology, and Logistics.</text>
</paragraph><paragraph changed="added" committee-id="SSAS00" id="idf4d1e6b8-07d0-43ac-add3-b1299e2a1e22" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Director shall submit
to the Secretary of Defense and to Congress each year a report on the
technological maturity and integration risk of critical technologies of the
major defense acquisition programs of the Department of
Defense.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id540bf89a-afb3-49a0-b862-d11bda209d7c"><enum>(2)</enum><header>First annual
report</header><text>The first annual report under subsection (c)(2) of section
139a of title 10, United States Code (as added by paragraph (1)), shall be
submitted to Congress not later than March 1, 2011, and shall address the
results of reviews and assessments conducted by the Director of Defense
Research and Engineering pursuant to subsection (c)(1) of such section (as so
added) during the preceding calendar year.</text>
</paragraph></subsection><subsection id="idfcb439fc-63d6-4b10-be65-6c55fc8cf455"><enum>(b)</enum><header>Report on resources for
implementation</header><text>Not later than 120 days after the date of the
enactment of this Act, the Director of Defense Research and Engineering shall
submit to the congressional defense committees a report describing any
additional resources, 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 id="ide9126955-60e9-46de-996c-2cb0da03f099"><enum>(1)</enum><text>The requirements under
the amendment made by subsection (a).</text>
</paragraph><paragraph id="id46422348-b39d-4f31-85a5-85a695d238b5"><enum>(2)</enum><text>The technological
maturity assessments required by section 2366b(a) of title 10, United States
Code, as amended by section 202 of this Act.</text>
</paragraph><paragraph id="id89261051-add0-4615-a39a-6896c90c2bf9"><enum>(3)</enum><text>The requirements of
Department of Defense Instruction 5000, as revised.</text>
</paragraph></subsection></section><section id="id43fb7294-31ce-4064-8fa3-2c6ea72c9e88"><enum>104.</enum><header>Director of
Independent Cost Assessment</header>
<subsection id="id993be56c-ba90-4a29-b986-0b472e92ab86"><enum>(a)</enum><header>Director of Independent
Cost Assessment</header>
<paragraph id="ida0e5d8ba-9065-4335-b5d7-317bae827c78"><enum>(1)</enum><header>In
general</header><text>Chapter 4 of title 10, United States Code, as amended by
section 102 of this Act, is further amended by inserting after section 139c the
following new section:</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idc98d1af0-6905-41b0-93fa-5158a9e912e6" reported-display-style="italic" style="USC">
<section id="id7211b2d9-0237-46dd-9247-919ca4f2f4af"><enum>139d.</enum><header>Director of
Independent Cost Assessment</header>
<subsection id="idf6f1f3a0-34f7-427a-a79e-6e70da351495"><enum>(a)</enum><text>There is a Director of
Independent Cost Assessment in the Department of Defense, appointed by the
President, by and with the advice and consent of the Senate. The Director shall
be appointed without regard to political affiliation and solely on the basis of
fitness to perform the duties of the Director.</text>
</subsection><subsection id="id0bd5039e-6d07-4398-94db-ed54b159c7f7"><enum>(b)</enum><text>The Director is the
principal advisor to the Secretary of Defense, the Under Secretary of Defense
for Acquisition, Technology, and Logistics, and the Under Secretary of Defense
(Comptroller) on cost estimation and cost analyses for the acquisition programs
of the Department of Defense and the principal cost estimation official within
the senior management of the Department of Defense. The Director shall—</text>
<paragraph id="idf25d503d-6d1a-4346-8128-1af12df81543"><enum>(1)</enum><text>prescribe, by authority
of the Secretary of Defense, policies and procedures for the conduct of cost
estimation and cost analysis for the acquisition programs of the Department of
Defense;</text>
</paragraph><paragraph id="ida276c336-111e-4d4c-942f-84fec7827333"><enum>(2)</enum><text>provide guidance to and
consult with the Secretary of Defense, the Under Secretary of Defense for
Acquisition, Technology, and Logistics, the Under Secretary of Defense
(Comptroller), and the Secretaries of the military departments with respect to
cost estimation in the Department of Defense in general and with respect to
specific cost estimates and cost analyses to be conducted in connection with a
major defense acquisition program under chapter 144 of this title or a major
automated information system program under chapter 144A of this title;</text>
</paragraph><paragraph id="idf94ce26c-a201-4bb6-a7da-e90dd0fee839"><enum>(3)</enum><text>establish guidance on
confidence levels for cost estimates on major defense acquisition programs and
require the disclosure of all such confidence levels;</text>
</paragraph><paragraph id="id9d20fba4-dde0-40d7-b712-d57590f27e75"><enum>(4)</enum><text>monitor and review all
cost estimates and cost analyses conducted in connection with major defense
acquisition programs and major automated information system programs;
and</text>
</paragraph><paragraph id="idd7579b5d-3bcc-4b59-924a-6155555b820f"><enum>(5)</enum><text>conduct independent cost
estimates and cost analyses for major defense acquisition programs and major
automated information system programs for which the Under Secretary of Defense
for Acquisition, Technology, and Logistics is the Milestone Decision
Authority—</text>
<subparagraph id="id9a4e5e4c-2a4f-45f3-9fb7-7956363a721c"><enum>(A)</enum><text>in advance of—</text>
<clause id="id73408474-b55e-427d-9f2c-f42059c21af4"><enum>(i)</enum><text>any certification under
section 2366a or 2366b of this title;</text>
</clause><clause id="id3fda2d36-d560-467f-a784-114f5c7d105e"><enum>(ii)</enum><text>any certification under
section 2433(e)(2) of this title; and</text>
</clause><clause id="id390c373e-f325-4308-a5d4-6ee84af5dcf5"><enum>(iii)</enum><text>any report under
section 2445c(f) of this title; and</text>
</clause></subparagraph><subparagraph id="ida35c3cea-6ee2-46fc-9174-e5b929b1bd0c"><enum>(B)</enum><text>whenever necessary to
ensure that an estimate or analysis under paragraph (4) is unbiased, fair, and
reliable.</text>
</subparagraph></paragraph></subsection><subsection id="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>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 changed="added" committee-id="SSAS00" id="idaf73a9fb-7e94-451e-beed-aab1e3da5dfc" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Director shall
consult closely with, but the Director and the Director’s staff shall be
independent of, the Under Secretary of Defense for Acquisition, Technology, and
Logistics, the Under Secretary of Defense (Comptroller), and all other officers
and entities of the Department of Defense responsible for acquisition and
budgeting.</text>
</paragraph></subsection><subsection id="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>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 changed="added" committee-id="SSAS00" id="id9628f136-4283-455d-ad1d-050b520c77d8" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Director may make
comments on cost estimates and cost analyses conducted by a military department
for a major defense acquisition program, request changes in such cost estimates
and cost analyses to ensure that they are fair and reliable, and develop or
require the development of independent cost estimates or cost analyses for such
program, as the Director determines to be appropriate.</text>
</paragraph><paragraph changed="added" committee-id="SSAS00" id="id78957b11-59e8-4a93-978c-eaf8d0c3beb7" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The Director shall have
access to any records and data in the Department of Defense (including the
records and data of each military department) that the Director considers
necessary to review in order to carry out the Director's duties under this
section.</text>
</paragraph></subsection><subsection id="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>The Director shall
prepare an annual report summarizing the cost estimation and cost analysis
activities of the Department of Defense during the previous year and assessing
the progress of the Department in improving the accuracy of its costs estimates
and analyses.</text>
</paragraph><paragraph changed="added" committee-id="SSAS00" id="id1fb5d5c3-17ef-46b7-8881-ae73dd30dcb3" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>Each report under this
subsection shall be submitted concurrently to the Secretary of Defense, the
Under Secretary of Defense for Acquisition, Technology, and Logistics, the
Under Secretary of Defense (Comptroller), and Congress not later than 10 days
after the transmission of the budget for the next fiscal year under section
1105 of title 31. The Director shall ensure that a report submitted under this
subsection does not include any information, such as proprietary or source
selection sensitive information, that could undermine the integrity of the
acquisition process.</text>
</paragraph><paragraph changed="added" committee-id="SSAS00" id="id3d56accd-2112-476d-a6b2-ef827f76c8ee" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The Secretary may comment
on any report of the Director to Congress under this subsection.</text>
</paragraph></subsection><subsection id="idda477d05-84c7-46cf-8032-d3f05ad4c6e0"><enum>(f)</enum><text>The President shall
include in the budget transmitted to Congress pursuant to section 1105 of title
31 for each fiscal year a separate statement of estimated expenditures and
proposed appropriations for that fiscal year for the Director of Independent
Cost Assessment in carrying out the duties and responsibilities of the Director
under this section.</text>
</subsection><subsection id="id1cfd0781-34c8-498c-ba20-2c2eeafa2a25"><enum>(g)</enum><text>The Secretary of Defense
shall ensure that the Director has sufficient professional staff of military
and civilian personnel to enable the Director to carry out the duties and
responsibilities of the Director under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id2fda592d-ab77-4748-87e3-cf6044bc3f31"><enum>(2)</enum><header>Clerical
amendment</header><text>The table of sections at the beginning of chapter 4 of
such title, as so amended, is further amended by inserting after the item
relating to section 139c the following new item:</text>
<quoted-block changed="added" committee-id="SSAS00" id="id0075e1e9-ce34-4ea5-9c5f-295b9fd8bed7" reported-display-style="italic" style="USC">
<toc changed="added" committee-id="SSAS00" reported-display-style="italic">
<toc-entry idref="IDc188e44999374c738164dbe851bef663" level="section">139d. Director of Independent Cost
Assessment.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id22BE9587176541CCA27B643FDEEB38F0"><enum>(3)</enum><header>Executive Schedule
Level IV</header><text>Section 5315 of title 5, United States Code, is amended
by inserting after the item relating to the Director of Operational Test and
Evaluation, Department of Defense the following new item:</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idEDB5F0390A804920A2AD465232AE9253" reported-display-style="italic" style="OLC">
<paragraph id="id31F441581E764F9E955D0AAD584EE780"><enum></enum><text>Director of Independent Cost Assessment,
Defense of
Defense.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id205eae29-3722-43e4-be28-e28ae2ce9199"><enum>(b)</enum><header>Report on monitoring of
operating and support costs for MDAPs</header>
<paragraph id="idbef2d915-7e2f-44fe-8d84-4275da02fddb"><enum>(1)</enum><header>Report to Secretary of
Defense</header><text>Not later than one year after the date of the enactment
of this Act, the Director of Independent Cost Assessment under section 139d of
title 10 United States Code (as added by subsection (a)), shall review existing
systems and methods of the Department of Defense for tracking and assessing
operating and support costs on major defense acquisition programs and submit to
the Secretary of Defense a report on the finding and recommendations of the
Director as a result of the review.</text>
</paragraph><paragraph id="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 changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="ide88aff78-3b0c-4184-a1ce-5477f7597005" reported-display-style="italic" 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 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></section><section id="id26a0c937-8d94-48ca-bb5b-982f0deb63fa"><enum>105.</enum><header>Role of the commanders
of the combatant commands in identifying joint military
requirements</header><text display-inline="no-display-inline">Section 181 of
title 10, United States Code, as amended by section 104(d)(1) of this Act, is
further amended—</text>
<paragraph id="id5723DC13DD29465A92514E220BEC80F2"><enum>(1)</enum><text>by redesignating
subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively;
and</text>
</paragraph><paragraph id="id82D04BD91D4F4ABE84370FAFAE840F03"><enum>(2)</enum><text>by adding after
subsection (d) the following new subsection (e):</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idedaf9c35-3509-4de8-83f8-37dba0ea5af4" reported-display-style="italic" style="OLC">
<subsection id="id7c5c0cb6-020f-4375-9a99-ca6135acd947"><enum>(e)</enum><header>Input from combatant
commanders on joint military requirements</header><text>The Council shall seek
and consider input from the commanders of the combatant commands in carrying
out its mission under paragraphs (1) and (2) of subsection (b) and in
conducting periodic reviews in accordance with the requirements of subsection
(f).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>II</enum><header>Acquisition
Policy</header>
<section id="id61d10962-485e-4d9f-950c-ef50253fece7"><enum>201.</enum><header>Consideration of
trade-offs among cost, schedule, and performance in the acquisition of major
weapon systems</header>
<subsection id="id5c39226a-ad77-4c29-98b8-d683bf35534a"><enum>(a)</enum><header>Consideration of
trade-offs</header>
<paragraph id="id21e50df4-5e9d-481d-85d9-c2833d353c73"><enum>(1)</enum><header>In
general</header><text>The Secretary of Defense shall develop and implement
mechanisms to ensure that trade-offs between cost, schedule, and performance
are considered as part of the process for developing requirements for major
weapon systems.</text>
</paragraph><paragraph id="idb6c7680c-279e-46d2-a561-c2e9cccb3ed7"><enum>(2)</enum><header>Elements</header><text>The
mechanisms required under this subsection shall ensure, at a minimum,
that—</text>
<subparagraph id="id8517ad14-e0f7-445e-8843-d9376b8ef1a9"><enum>(A)</enum><text>Department of Defense
officials responsible for acquisition, budget, and cost estimating functions
are provided an appropriate opportunity to develop estimates and raise cost and
schedule matters before performance requirements are established for major
weapon systems; and</text>
</subparagraph><subparagraph id="id01bf3fac-0eb3-4df9-804f-ae74fdb9ec87"><enum>(B)</enum><text>consideration is given to
fielding major weapon systems through incremental or spiral acquisition, while
deferring technologies that are not yet mature, and capabilities that are
likely to significantly increase costs or delay production, until later
increments or spirals.</text>
</subparagraph></paragraph><paragraph id="idf5d3ef80-ae45-465a-b6b6-9d68294f06cf"><enum>(3)</enum><header>Major weapons system
defined</header><text>In this subsection, the term <term>major weapon
system</term> has the meaning given that term in section 2379(d) of title 10,
United States Code.</text>
</paragraph></subsection><subsection id="id7ce60077-c92e-4cc6-9d83-0a16f1ec4fcb"><enum>(b)</enum><header>Duties of Joint
Requirements Oversight Council</header><text>Section 181(b)(1) of title 10,
United States Code, is amended—</text>
<paragraph id="iddd0dec67-2260-4c3e-9832-3e54c476864b"><enum>(1)</enum><text>in subparagraph (A), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id04d6e850-d73e-4832-af18-66ef63b29fed"><enum>(2)</enum><text>in subparagraph (B), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="id63ec548c-4306-44e5-8516-8651deacd92e"><enum>(3)</enum><text>by adding at the end the
following new subparagraph:</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="idbe29cc70-98a2-4519-992d-6bf75258416b" reported-display-style="italic" style="OLC">
<subparagraph id="idfe095c22-cde4-4327-8b0c-895ef25ede63"><enum>(C)</enum><text>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="idE9E71B72B0D54E97BD70FF3CE227D0ED"><enum>(c)</enum><header>Analysis of
alternatives</header>
<paragraph id="id97D1647E2F764ADFACE9F716F944C561"><enum>(1)</enum><header>Requirement at material
solution analysis phase</header><text>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 id="idA16DC75A3C454725A376DDB28D87EFA8"><enum>(2)</enum><header>Elements</header><text>Each
analysis of alternatives under paragraph (1) shall, at a minimum—</text>
<subparagraph id="idDC3CEAC1FAFD4C14B0A28B0635841CBC"><enum>(A)</enum><text>solicit and consider
alternative approaches proposed by the military departments and Defense
Agencies to meet joint military requirements; and</text>
</subparagraph><subparagraph id="id10B74C00BB29451993A1883B3E2BF4DC"><enum>(B)</enum><text>give full consideration
to possible trade-offs between cost, schedule, and performance for each of the
alternatives so considered.</text>
</subparagraph></paragraph></subsection><subsection id="id273E56FFE2684FD683C8000C0EDEC6BC"><enum>(d)</enum><header>Duties of Milestone
Decision Authority</header><text>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 id="id5a9f0216-6e8e-4ba2-b438-34482c2df428"><enum>202.</enum><header>Preliminary design
review and critical design review for major defense acquisition
programs</header>
<subsection id="id23D1635FEAB94DEB88F23A97AD077ECC"><enum>(a)</enum><header>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 id="idd1b12dad-0d24-489a-93a9-01cbcb3b695e"><enum>(1)</enum><text>in paragraph (1), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id2aeb88eb-af80-40af-a75f-3b93ef6819ca"><enum>(2)</enum><text>by redesignating
paragraph (2) as paragraph (3);</text>
</paragraph><paragraph id="idc58ee733-812b-4dd9-adfd-ea162ab4fe0a"><enum>(3)</enum><text>by inserting after
paragraph (1) the following new paragraph (2):</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="id67e77684-03d5-4a8e-bd19-44dd2a425ffc" reported-display-style="italic" style="OLC">
<paragraph id="id892939a3-4f8f-4c38-8524-79388caa0495"><enum>(2)</enum><text>has received a
preliminary design review (PDR) and conducted a formal post-preliminary design
review assessment, and certifies on the basis of such assessment that the
program demonstrates a high likelihood of accomplishing its intended mission;
and</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ide06e8f31-ac55-4555-b9e1-0ba24e71a751"><enum>(4)</enum><text>in paragraph (3), as
redesignated by paragraph (2) of this section—</text>
<subparagraph id="id1babb9fa-048c-42ac-ae66-0a33b2ddaeb8"><enum>(A)</enum><text>in subparagraph (D), by
striking the semicolon and inserting <quote>, as determined by the Milestone
Decision Authority on the basis of an independent review and assessment by the
Director of Defense Research and Engineering; and</quote>;</text>
</subparagraph><subparagraph id="idf03c1372-e64d-4320-b200-0e54ba15a9b1"><enum>(B)</enum><text>by striking subparagraph
(E); and</text>
</subparagraph><subparagraph id="idb0f6ddc2-2b65-41db-928e-23af9c1e58ce"><enum>(C)</enum><text>by redesignating
subparagraph (F) as subparagraph (E).</text>
</subparagraph></paragraph></subsection><subsection id="id08ED74CFEFB6425AB01D72F515307D52"><enum>(b)</enum><header>Critical design
review</header><text>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 id="id1db167cb-dc18-4281-ac0d-eca49a85f2bc"><enum>203.</enum><header>Ensuring competition
throughout the life cycle of major defense acquisition programs</header>
<subsection id="id921c173f-bd40-4796-bbae-b3f5b7ee2ab3"><enum>(a)</enum><header>Ensuring
competition</header><text>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 id="id2c527484-f31b-4104-b4ed-643ee42e19b3"><enum>(b)</enum><header>Measures To ensure
competition</header><text>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 id="id9d80160b-6461-480b-96e8-4bf7a61cef03"><enum>(1)</enum><text>Competitive
prototyping.</text>
</paragraph><paragraph id="id8e8ceba8-2db5-4bb7-8eb5-0f42a175650d"><enum>(2)</enum><text>Dual-sourcing.</text>
</paragraph><paragraph id="id352ad730-3447-45fa-8bc2-92cd819bf0c9"><enum>(3)</enum><text>Funding of a second
source for interchangeable, next-generation prototype systems or
subsystems.</text>
</paragraph><paragraph id="idad88111b-f41d-4fce-92e5-c85107def7dc"><enum>(4)</enum><text>Utilization of modular,
open architectures to enable competition for upgrades.</text>
</paragraph><paragraph id="id81c5c46c-135d-4d44-bf68-caaa3b3b127a"><enum>(5)</enum><text>Periodic competitions for
subsystem upgrades.</text>
</paragraph><paragraph id="id9078809d-5249-4f85-a27d-b937ce8eb6e5"><enum>(6)</enum><text>Licensing of additional
suppliers.</text>
</paragraph><paragraph id="idb44e483d-dfa5-41ef-9a78-24e984022954"><enum>(7)</enum><text>Requirements for
Government oversight or approval of make or buy decisions to ensure competition
at the subsystem level.</text>
</paragraph><paragraph id="id790f001c-b258-474a-b0f9-cc929e1dd507"><enum>(8)</enum><text>Periodic system or
program reviews to address long-term competitive effects of program
decisions.</text>
</paragraph><paragraph id="id88223513-1be1-4852-8406-5ca6c494e882"><enum>(9)</enum><text>Consideration of
competition at the subcontract level and in make or buy decisions as a factor
in proposal evaluations.</text>
</paragraph></subsection><subsection id="idc300de82-8158-4f15-9fc3-170011716a38"><enum>(c)</enum><header>Competitive
prototyping</header><text>The Secretary of Defense shall modify the acquisition
regulations of the Department of Defense to ensure with respect to competitive
prototyping for major defense acquisition programs the following:</text>
<paragraph id="id8320bedd-3408-443c-bb71-f99c9933b1e4"><enum>(1)</enum><text>That the acquisition
strategy for each major defense acquisition program provides for two or more
competing teams to produce prototypes before Milestone B approval (or Key
Decision Point B approval in the case of a space program) unless the milestone
decision authority for such program waives the requirement on the basis of a
determination that—</text>
<subparagraph id="idD34F7F0834D348A7A48644A47E45C354"><enum>(A)</enum><text>but for such waiver, the
Department would be unable to meet critical national security objectives;
or</text>
</subparagraph><subparagraph id="idA9604334244241EF9A1BAE604EB34479"><enum>(B)</enum><text>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 id="id1437cb23-5271-43bb-8a6d-9e40f26736d6"><enum>(2)</enum><text>That if the milestone
decision authority waives the requirement for prototypes produced by two or
more teams for a major defense acquisition program under paragraph (1), the
acquisition strategy for the program provides for the production of at least
one prototype before Milestone B approval (or Key Decision Point B approval in
the case of a space program) unless the milestone decision authority waives
such requirement on the basis of a determination that—</text>
<subparagraph id="id8582F1E10B8E4517AB616D315C63A74D"><enum>(A)</enum><text>but for such waiver, the
Department would be unable to meet critical national security objectives;
or</text>
</subparagraph><subparagraph id="idC41E63DC57DB49E5A185E5CB7830D73F"><enum>(B)</enum><text>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 id="id34e8552b-5f33-43dc-8247-9ef35fb031fa"><enum>(3)</enum><text>That whenever a milestone
decision authority authorizes a waiver under paragraph (1) or (2), the waiver,
the determination upon which the waiver is based, and the reasons for the
determination are submitted in writing to the congressional defense committees
not later than 30 days after the waiver is authorized.</text>
</paragraph><paragraph id="id3C591C605BBC4552B500B4978FE9D746"><enum>(4)</enum><text>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="ideaffd262-8a79-4d09-a189-4a6cb23c2c91"><enum>(d)</enum><header>Applicability</header><text>This
section shall apply to any acquisition plan for a major defense acquisition
program that is developed or revised on or after the date that is 60 days after
the date of the enactment of this Act.</text>
</subsection></section><section id="ide64a9f2c-8dbd-4d14-bd23-6a9cd5cd50b2"><enum>204.</enum><header>Critical cost growth
in major defense acquisition programs</header>
<subsection id="id2c5780aa-6bfa-4f6a-846b-10f02c40c166"><enum>(a)</enum><header>Authorized actions in
event of critical cost growth</header><text>Section 2433(e)(2) of title 10,
United States Code, is amended—</text>
<paragraph id="id9c97b89e-e6c9-4227-9716-fa16c5eb3a18"><enum>(1)</enum><text>by redesignating
subparagraph (C) as subparagraph (D);</text>
</paragraph><paragraph id="idac8f491c-4b1f-4d1a-8174-2c393d9a6084"><enum>(2)</enum><text>by striking subparagraph
(B); and</text>
</paragraph><paragraph id="idaa40328f-b542-4814-b471-332a60e157d5"><enum>(3)</enum><text>by inserting after
subparagraph (A) the following new subparagraphs (B) and (C):</text>
<quoted-block changed="added" committee-id="SSAS00" display-inline="no-display-inline" id="id8a760b37-abfd-4d9b-ba5e-efcbe9069d93" reported-display-style="italic" style="OLC">
<subparagraph id="idbcc9ba23-13d3-4a79-946a-bc10c15b8a24" indent="up1"><enum>(B)</enum><text>terminate such
acquisition program, unless the Secretary determines that the continuation of
such program is essential to the national security of the United States and
submits a written certification in accordance with subparagraph (C)(i)
accompanied by a report setting forth the assessment carried out pursuant to
subparagraph (A) and the basis for each determination made in accordance with
clauses (I) through (IV) of subparagraph (C)(i), together with supporting
documentation;</text>
</subparagraph><subparagraph id="id5b9ad064-f206-455e-bf94-e7e2fe4c3a77" indent="up1"><enum>(C)</enum><text>if the program is not
terminated—</text>
<clause id="id4aa09c70-b04e-4128-9ff6-b3a8fef26142"><enum>(i)</enum><text>submit to Congress,
before the end of the 60-day period beginning on the day the Selected
Acquisition Report containing the information described in subsection (g) is
required to be submitted under section 2432(f) of this title, a written
certification stating that—</text>
<subclause id="id608bffb8-c431-476f-b142-4c6780c3c2f9"><enum>(I)</enum><text>such acquisition program
is essential to national security;</text>
</subclause><subclause id="ided5d7729-ed15-42d0-9092-795bd0d4a29d"><enum>(II)</enum><text>there are no
alternatives to such acquisition program which will provide equal or greater
capability to meet a joint military requirement (as that term is defined in
section 181(h)(1) of this title) at less cost;</text>
</subclause><subclause id="id44419fe4-f5e1-4927-aac2-0852edd71a97"><enum>(III)</enum><text>the new estimates of
the program acquisition unit cost or procurement unit cost were arrived at in
accordance with the requirements of section 139d of this title and are
reasonable; and</text>
</subclause><subclause id="id92290fa6-ce33-4f57-91ac-a2b03deed5a1"><enum>(IV)</enum><text>the management structure
for the acquisition program is adequate to manage and control program
acquisition unit cost or procurement unit cost;</text>
</subclause></clause><clause id="idec971768-f4bc-49e9-8402-e6a2e495079c"><enum>(ii)</enum><text>rescind the most recent
Milestone approval (or Key Decision Point approval in the case of a space
program) for such program and withdraw any associated certification under
section 2366a or 2366b of this title; and</text>
</clause><clause id="id033c53bd-c1e1-40ce-81af-3640059b268f"><enum>(iii)</enum><text>require a new Milestone
approval (or Key Decision Point approval in the case of a space program) for
such program before entering into a new contract, exercising an option under an
existing contract, or otherwise extending the scope of an existing contract
under such program;
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id0375c4d6-7a56-4577-b887-9077fb911b79"><enum>(b)</enum><header>Total expenditure for
procurement resulting in treatment as MDAP</header><text>Section 2430(a)(2) of
such title is amended by inserting <quote>, including all planned increments or
spirals,</quote> after <quote>an eventual total expenditure for
procurement</quote>.</text>
</subsection></section><section id="id5883beaa-bcd4-4a24-a327-ae37bafc012d"><enum>205.</enum><header>Organizational
conflicts of interest in the acquisition of major weapon systems</header>
<subsection id="id88f5c69c-5ee8-4d7e-a8c6-ba4c3a2be948"><enum>(a)</enum><header>Revised regulations
required</header><text>Not later than 180 days after the date of the enactment
of this Act, the Under Secretary of Defense for Acquisition, Technology, and
Logistics shall revise the Defense Supplement to the Federal Acquisition
Regulation to address organizational conflicts of interest by contractors in
the acquisition of major weapon systems.</text>
</subsection><subsection id="idbfa7f312-cec9-451e-ac9a-78b0d762c32b"><enum>(b)</enum><header>Elements</header><text>The
revised regulations required by subsection (a) shall, at a minimum—</text>
<paragraph id="id438522cf-dd39-4340-ab1f-79010541493f"><enum>(1)</enum><text>ensure that the
Department of Defense receives advice on systems architecture and systems
engineering matters with respect to major weapon systems from federally funded
research and development centers or other sources independent of the prime
contractor;</text>
</paragraph><paragraph id="idec594b06-d807-441d-958b-e7b84e86033b"><enum>(2)</enum><text>require that a contract
for the performance of systems engineering and technical assistance (SETA)
functions with regard to a major weapon system contains a provision prohibiting
the contractor or any affiliate of the contractor from having a direct
financial interest in the development or construction of the weapon system or
any component thereof;</text>
</paragraph><paragraph id="id8A4AAFBE712542ECAADE511959A34612"><enum>(3)</enum><text>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 under rules governing foreign ownership, control,
or influence over United States companies that have access to classified
information, including, at a minimum—</text>
<subparagraph id="idBAEA875C0DCD47FB8D9E6BA1B5E2FBCE"><enum>(A)</enum><text>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 id="id3CD096DE4C5E446B9FD56818B76CB535"><enum>(B)</enum><text>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 id="id2750E7BAA1854313A7A1F66AF2067093"><enum>(C)</enum><text>complete informational
separation, including the execution of non-disclosure agreements;</text>
</subparagraph><subparagraph id="id25CD9C6F92194AC69A8A81092500CD51"><enum>(D)</enum><text>initial and recurring
training on organizational conflicts of interest and protections against
organizational conflicts of interest; and</text>
</subparagraph><subparagraph id="id6BEB9F649D2744508FD0B9A37CB97138"><enum>(E)</enum><text>annual compliance audits
in which Department of Defense personnel are authorized to participate;</text>
</subparagraph></paragraph><paragraph id="idF3D07BB9A3794A0B9622B7346FD40C22"><enum>(4)</enum><text>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 id="id9EED56BB646847FD90CE83F6628A5EFD"><enum>(5)</enum><text>authorize waiver of the
requirement in paragraph (2) in cases in which the agency head determines in
writing that—</text>
<subparagraph id="idF211D5A6A7B94220900B572CFF5B7BD8"><enum>(A)</enum><text>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 id="id6507EB2CB5DB48D79E60BE5AECFA8A93"><enum>(B)</enum><text>the contractor—</text>
<clause id="id59F68A024CE84ABFB70E9577FEF74164"><enum>(i)</enum><text>has unique systems
engineering capabilities that are not available from other sources;</text>
</clause><clause id="idA43ED86ABE4340DF8E112FA2F6CADE3E"><enum>(ii)</enum><text>has taken appropriate
actions to mitigate any organizational conflict of interest; and</text>
</clause><clause id="id3DE6D5D5655841BBB133AE0F14E4A524"><enum>(iii)</enum><text>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 id="id4121f4cb-2668-4e75-b1b4-31c8d9196284"><enum>(6)</enum><text>provide for fair and
objective <quote>make-buy</quote> decisions by the prime contractor on a major
weapon system by—</text>
<subparagraph id="idb2f0a498-4b1b-484d-b304-e99247a12090"><enum>(A)</enum><text>requiring prime
contractors to give full and fair consideration to qualified sources other than
the prime contractor for the development or construction of major subsystems
and components of the weapon system;</text>
</subparagraph><subparagraph id="id184c9aa1-bd8b-46dd-be73-437f7a02d02a"><enum>(B)</enum><text>providing for government
oversight of the process by which prime contractors consider such sources and
determine whether to conduct such development or construction in-house or
through a subcontract;</text>
</subparagraph><subparagraph id="idec9da17e-3d99-43ef-ab78-ba8c2457ba28"><enum>(C)</enum><text>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 id="idBF01492A54964D9596E37B15B66E2C47"><enum>(i)</enum><text>the prime contractor
fails to give full and fair consideration to qualified sources other than the
prime contractor; or</text>
</clause><clause id="id0313340CD31B4E068E042CB72183EEA6"><enum>(ii)</enum><text>implementation of the
determination by the prime contractor is likely to undermine future competition
or the defense industrial base; and</text>
</clause></subparagraph><subparagraph id="id3700488b-d446-4db3-9fd0-f81eebc1c9ca"><enum>(D)</enum><text>providing for the
consideration of prime contractors <quote>make-buy</quote> decisions in past
performance evaluations.</text>
</subparagraph></paragraph></subsection><subsection id="id07346224-b563-49dc-bcd1-16be010217af"><enum>(c)</enum><header>Organizational Conflict
of Interest Review Board</header>
<paragraph id="idbb80cdfd-658d-478d-8c8f-d5b1788d0b6a"><enum>(1)</enum><header>Establishment
required</header><text>Not later than 90 days after the date of the enactment
of this Act, the Secretary of Defense shall establish within the Department of
Defense a board to be known as the <quote>Organizational Conflict of Interest
Review Board</quote>.</text>
</paragraph><paragraph id="id2b7be57c-63ae-449b-8d77-76a203eae647"><enum>(2)</enum><header>Duties</header><text>The
Board shall have the following duties:</text>
<subparagraph id="idfc898335-4371-4e95-afcf-c55e8b38de37"><enum>(A)</enum><text>To advise the Under
Secretary of Defense for Acquisition, Technology, and Logistics on policies
relating to organizational conflicts of interest in the acquisition of major
weapon systems.</text>
</subparagraph><subparagraph id="id6179171f-6731-476a-8d95-1c9a9fa7cb5a"><enum>(B)</enum><text>To advise program
managers on steps to comply with the requirements of the revised regulations
required by this section and to address organizational conflicts of interest in
the acquisition of major weapon systems.</text>
</subparagraph><subparagraph id="id80da2297-cec7-4650-a042-5b14c76a6014"><enum>(C)</enum><text>To advise appropriate
officials of the Department on organizational conflicts of interest arising in
proposed mergers of defense contractors.</text>
</subparagraph></paragraph></subsection><subsection id="id6db96633-9722-4cb8-8c8e-f7244bb2d69c"><enum>(d)</enum><header>Major weapon system
defined</header><text>In this section, the term <term>major weapon
system</term> has the meaning given that term in section 2379(d) of title 10,
United States Code.</text>
</subsection></section><section id="id33da649f-f9fc-4cca-9c5d-d00a9c243e42"><enum>206.</enum><header>Awards for Department
of Defense personnel for excellence in the acquisition of products and
services</header>
<subsection id="id77965743-3764-4ec3-8193-86c0a555a832"><enum>(a)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this Act, the Secretary of Defense shall commence carrying out a program to
recognize excellent performance by individuals and teams of members of the
Armed Forces and civilian personnel of the Department of Defense in the
acquisition of products and services for the Department of Defense.</text>
</subsection><subsection id="id22362fb5-101c-4c6c-9e9d-efd28ebf5b39"><enum>(b)</enum><header>Elements</header><text>The
program required by subsection (a) shall include the following:</text>
<paragraph id="id2740b1ff-d6f5-4c16-8ac0-6fc3ee31d243"><enum>(1)</enum><text>Procedures for the
nomination by the personnel of the military departments and the Defense
Agencies of individuals and teams of members of the Armed Forces and civilian
personnel of the Department of Defense for eligibility for recognition under
the program.</text>
</paragraph><paragraph id="id9cd649dc-0f54-4069-adba-441f2820aad3"><enum>(2)</enum><text>Procedures for the
evaluation of nominations for recognition under the program by one or more
panels of individuals from the government, academia, and the private sector who
have such expertise, and are appointed in such manner, as the Secretary shall
establish for purposes of the program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idcf8cbe7a-b5cc-48c4-bfd8-9826fd6c12ae"><enum>(c)</enum><header>Award of cash
bonuses</header><text>As part of the program required by subsection (a), the
Secretary may award to any individual recognized pursuant to the program a cash
bonus authorized by any other provision of law to the extent that the
performance of such individual so recognized warrants the award of such bonus
under such provision of law.</text>
</subsection></section>
April 2, 2009
Reported with an amendment