[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4741 Introduced in House (IH)]

<DOC>






114th CONGRESS
  2d Session
                                H. R. 4741

  To amend title 10, United States Code, to provide for modular open 
  system architecture in major defense acquisition programs, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 2016

Mr. Thornberry introduced the following bill; which was referred to the 
                      Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
  To amend title 10, United States Code, to provide for modular open 
  system architecture in major defense acquisition programs, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Acquisition 
Agility Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Modular open system architecture in development of major weapon 
                            systems.
Sec. 3. Weapon system component development, prototyping, and 
                            deployment.
Sec. 4. Cost, schedule, and performance of major defense acquisition 
                            programs.
Sec. 5. Transparency in major defense acquisition programs.
Sec. 6. Amendments relating to technical data rights.

SEC. 2. MODULAR OPEN SYSTEM ARCHITECTURE IN DEVELOPMENT OF MAJOR WEAPON 
              SYSTEMS.

    (a) In General.--Part IV of subtitle A of title 10, United States 
Code, is amended by inserting after chapter 144A the following new 
chapter:

     ``CHAPTER 144B--WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS

``Subchapter                                                       Sec.
``I. Modular Open System Architecture in Development of           2446a
                            Weapon Systems.
``II. Weapon System Component Development, Prototyping, and       2447a
                            Deployment.
``III. Cost, Schedule, and Performance of Major Defense           2448a
                            Acquisition Programs.

  ``SUBCHAPTER I--MODULAR OPEN SYSTEM ARCHITECTURE IN DEVELOPMENT OF 
                             WEAPON SYSTEMS

``Sec.
``2446a. Requirement for modular open system architecture in major 
                            defense acquisition programs; definitions.
``2446b. Requirement to address modular open system architecture in 
                            program capabilities development and 
                            acquisition weapon system design.
``2446c. Requirements relating to availability of major system 
                            interfaces and support for modular open 
                            system architecture.
``2446d. Requirement to include modular open system architecture in 
                            Selected Acquisition Reports.
``Sec. 2446a. Requirement for modular open system architecture in major 
              defense acquisition programs; definitions
    ``(a)  Modular Open System Architecture Requirement.--A major 
defense acquisition program initiated after October 1, 2018, shall be 
designed and developed with a modular open system architecture to 
enable incremental development.
    ``(b) Definitions.--In this chapter:
            ``(1) The term `modular open system architecture' means, 
        with respect to a major defense acquisition program, an 
        integrated business and technical strategy that--
                    ``(A) employs a modular design and uses, if 
                available and suitable, widely supported and consensus-
                based standards for major system interfaces between the 
                major system platform being developed under the program 
                and its major system components;
                    ``(B) is subjected to testing to ensure major 
                system interfaces comply with widely supported and 
                consensus-based standards; and
                    ``(C) uses a system architecture that allows major 
                system components to be incrementally added, removed, 
                or replaced throughout the life cycle of the major 
                system platform to afford opportunities for enhanced 
                competition and innovation while yielding--
                            ``(i) significant cost savings or 
                        avoidance;
                            ``(ii) schedule reduction; or
                            ``(iii) increased interoperability.
            ``(2) The term `major system platform' means the structure 
        of a major weapon system on which a major system component can 
        be mounted or integrated.
            ``(3) The term `major system component'--
                    ``(A) means a subsystem or assembly that can be 
                mounted or installed on a major system platform through 
                well-defined, open major system interfaces; and
                    ``(B) includes a subsystem or assembly that is 
                likely to have additional capability requirements, is 
                likely to change because of evolving technology or 
                threat, is needed for interoperability, facilitates 
                incremental deployment of capabilities, or is expected 
                to be replaced.
            ``(4) The term `major system interface' means a shared 
        boundary between a major system platform and its major system 
        components, defined by various characteristics pertaining to--
                    ``(A) physical standards for mounting major system 
                components;
                    ``(B) functional standards for integrating major 
                system components, such as electrical, radio frequency, 
                data, or software elements; and
                    ``(C) open intellectual property rights consistent 
                with section 2320 of this title.
            ``(5) The term `program capability document' means, with 
        respect to a major defense acquisition program, a document that 
        specifies capability requirements for the program, such as a 
        capability development document or a capability production 
        document.
            ``(6) The terms `program cost target' and `fielding target' 
        have the meanings provided in section 2448a(a) of this title.
            ``(7) The term `major defense acquisition program' has the 
        meaning provided in section 2430 of this title.
            ``(8) The term `major weapon system' has the meaning 
        provided in section 2379(f) of this title.
``Sec. 2446b. Requirement to address modular open system architecture 
              in program capabilities development and acquisition 
              weapon system design
    ``(a) Program Capability Document.--A program capability document 
for a major defense acquisition program shall identify and 
characterize--
            ``(1) the extent to which requirements for system 
        performance are likely to evolve during the life cycle of the 
        system because of evolving technology, threat, or 
        interoperability needs; and
            ``(2) for requirements that are expected to evolve, the 
        minimum acceptable capability that will be available upon 
        initial operating capability of the major defense acquisition 
        program.
    ``(b) Analysis of Alternatives.--The Director of Cost Assessment 
and Performance Evaluation, in formulating study guidance for analyses 
of alternatives for major defense acquisition programs and performing 
such analyses under section 139a(d)(4) of this title, shall ensure that 
any such analysis for a major defense acquisition program includes 
consideration of an incremental development approach and modular open 
system architecture.
    ``(c) Acquisition Strategy.--An acquisition strategy for a major 
defense acquisition program, as required under section 2431a of this 
title, shall--
            ``(1) clearly describe the modular open system architecture 
        to be used for the program;
            ``(2) differentiate between the major system platform and 
        major system components being developed under the program;
            ``(3) clearly describe the incremental approach to major 
        system components that are anticipated to meet requirements for 
        system performance;
            ``(4) identify additional major system components that may 
        be added later in the life cycle of the major system platform; 
        and
            ``(5) clearly describe how intellectual property and 
        related issues, such as data deliverables and license rights, 
        that are necessary to support a modular open system 
        architecture will be addressed.
    ``(d) Request for Proposals.--The milestone decision authority for 
a major defense acquisition program shall ensure that a request for 
proposals for the development or production phases of the program shall 
address the modular open system architecture to be used.
    ``(e) Milestone B.--A major defense acquisition program may not 
receive Milestone B approval under section 2366b of this title until 
the milestone decision authority determines in writing that--
            ``(1) the program incorporates a modular open system 
        architecture with clearly defined major system interfaces 
        between the major system platform and major system components 
        to be developed under the program;
            ``(2) such major system interfaces are consistent with the 
        widely supported and consensus-based standards that exist at 
        the time of the milestone decision, unless such standards are 
        unavailable or unsuitable for particular major system 
        interfaces; and
            ``(3) the Government has arranged to obtain appropriate and 
        necessary intellectual property rights with respect to such 
        major system interfaces upon completion of the development of 
        the major system platform.
``Sec. 2446c. Requirements relating to availability of major system 
              interfaces and support for modular open system 
              architecture
    ``The Secretary of each military department shall--
            ``(1) coordinate with the other military departments, the 
        defense agencies, defense and other private sector entities, 
        and national standards-setting organizations with respect to 
        the identification, development, and maintenance of major 
        system interfaces and standards for use in major system 
        platforms, where practicable;
            ``(2) ensure that major system interfaces incorporate 
        commercial standards to the maximum extent practicable;
            ``(3) ensure sufficient systems engineering and development 
        expertise and resources are available to support modular open 
        system architecture in requirements development and acquisition 
        program planning;
            ``(4) ensure that necessary planning, programming, and 
        budgeting resources are provided to identify, develop, and 
        maintain modular open system architecture and associated major 
        system interfaces; and
            ``(5) ensure adequate training in modular open system 
        architecture is provided to members of the requirements and 
        acquisition workforce.
``Sec. 2446d. Requirement to include modular open system architecture 
              in Selected Acquisition Reports
    ``For each major defense acquisition program that receives 
Milestone B approval after October 1, 2018, a description of the key 
elements of the modular open system architecture or, if a modular open 
system architecture was not used, the rationale for not using such an 
architecture, shall be submitted to the congressional defense 
committees with the first Selected Acquisition Report required under 
section 2432 of this title for the program.''.
    (b) Clerical Amendment.--The table of chapters for title 10, United 
States Code, is amended by adding after the item relating to chapter 
144A the following new item:

``144B. Weapon Systems Development and Related Matters......   2446a''.
    (c) Conforming Amendment.--Section 2366b(a)(3) of such title is 
amended--
            (1) by striking ``and'' at the end of subparagraph (K); and
            (2) by inserting after subparagraph (L) the following new 
        subparagraph:
                    ``(M) the requirements of section 2446b(e) of this 
                title are met; and''.
    (d) Effective Date.--Subchapter I of chapter 144B of title 10, 
United States Code, as added by subsection (a), shall take effect on 
October 1, 2016.

SEC. 3. WEAPON SYSTEM COMPONENT DEVELOPMENT, PROTOTYPING, AND 
              DEPLOYMENT.

    (a) In General.--Chapter 144B of title 10, United States Code, as 
added by section 2, is further amended by adding at the end the 
following new subchapter:

``SUBCHAPTER II--WEAPON SYSTEM COMPONENT DEVELOPMENT, PROTOTYPING, AND 
                               DEPLOYMENT

``Sec.
``2447a. Technology development in the acquisition of major weapon 
                            systems.
``2447b. Weapon system component prototype projects: display of budget 
                            information.
``2447c. Weapon system component prototype projects: oversight.
``2447d. Requirements and limitations for weapon system component 
                            prototype projects.
``2447e. Mechanisms to speed deployment of successful weapon system 
                            component prototypes.
``2447f. Definition of weapon system component.
``Sec. 2447a. Technology development in the acquisition of major weapon 
              systems
    ``Technology shall be developed in a major defense acquisition 
program that is initiated after October 1, 2018, only if the milestone 
decision authority for the program determines with a high degree of 
confidence that such development will not delay the fielding target of 
the program. If the milestone decision authority does not make such 
determination for a major system component being developed under the 
program, the milestone decision authority shall ensure that technology 
related to the major system component shall be sufficiently matured 
separate from the major defense acquisition program using the 
prototyping authorities of this section or other authorities, as 
appropriate.
``Sec. 2447b. Weapon system component prototype projects: display of 
              budget information
    ``(a) Requirements for Budget Display.--In the defense budget 
materials for any fiscal year after fiscal year 2017, the Secretary of 
Defense shall, with respect to advanced component development and 
prototype activities (within the research, development, test, and 
evaluation budget), set forth separately the amounts requested for each 
of the following:
            ``(1) Acquisition programs of record.
            ``(2) Experimentation and rapid prototyping of weapon 
        system components or other technologies and subsystems.
            ``(3) Other budget line items as determined by the 
        Secretary of Defense.
    ``(b) Additional Requirements.--For purposes of subsection (a)(2), 
the amounts requested for experimentation and rapid prototyping of 
weapon system components or other technologies and subsystems shall 
be--
            ``(1) displayed in separate budget lines structured into 
        either capability or weapon system component portfolios that 
        reflect the priority areas for prototype projects; and
            ``(2) justified with general descriptions of the types of 
        capability areas and technologies being funded or expected to 
        be funded during the fiscal year concerned.
    ``(c) Definitions.--In this section, the terms `budget' and 
`defense budget materials' have the meaning given those terms in 
section 234 of this title.
``Sec. 2447c. Weapon system component prototype projects: oversight
    ``(a) Establishment.--The Secretary of each military department 
shall establish or appoint an oversight board or similar group of 
senior advisors for managing prototype projects for weapon system 
components and other technologies and subsystems, including the use of 
funds for such projects, within the military department concerned.
    ``(b) Membership.--Each oversight board shall be comprised of 
senior officials with--
            ``(1) expertise in requirements; research, development, 
        test, and evaluation; acquisition; or other relevant areas 
        within the military department concerned; and
            ``(2) awareness of the component capability requirements of 
        major weapon systems, including scheduling and fielding goals 
        for such component capabilities.
    ``(c) Functions.--The functions of each oversight board are as 
follows:
            ``(1) To issue a strategic plan every three years that 
        prioritizes the capability and weapon system component 
        portfolio areas for conducting prototype projects, based on 
        assessments of high priority warfighter needs, capability gaps 
        on existing major weapon systems, opportunities to 
        incrementally integrate new components into major weapon 
        systems, and technologies that are expected to be sufficiently 
        mature to prototype within 3 years.
            ``(2) To annually recommend funding levels for weapon 
        system component prototype projects across capability or weapon 
        system component portfolios.
            ``(3) To annually recommend to the service acquisition 
        executive of the military department concerned specific weapon 
        system component prototype projects, subject to the 
        requirements and limitations in section 2447d of this title.
            ``(4) To ensure projects are managed by experts within the 
        Department of Defense who are knowledgeable in research, 
        development, test, and evaluation and who are aware of 
        opportunities for incremental deployment of component 
        capabilities to major weapon systems.
            ``(5) To ensure projects are conducted in a manner that 
        allows for appropriate experimentation and technology risk.
            ``(6) To ensure necessary technical, contracting, and 
        financial management resources are available to support each 
        project.
            ``(7) To submit to the congressional defense committees a 
        semiannual notification that includes the following:
                    ``(A) A description of each weapon system component 
                prototype project initiated during the preceding six 
                months, including an explanation of each project and 
                its required funding.
                    ``(B) A description of the results achieved from 
                weapon system component prototype projects completed 
                and tested during the preceding six months.
``Sec. 2447d. Requirements and limitations for weapon system component 
              prototype projects
    ``(a) Limitation on Prototype Project Duration.--A prototype 
project shall be completed within three years of its initiation.
    ``(b) Merit-Based Selection Process.--A prototype project shall be 
selected by the service acquisition executive of the military 
department concerned through a merit-based selection process that 
identifies the most promising and cost-effective prototypes that 
address a high priority warfighter need and are expected to be 
successfully demonstrated in a relevant environment.
    ``(c) Type of Transaction.--Prototype projects shall be funded 
through contracts, cooperative agreements, or other transactions.
    ``(d) Funding Limit.--(1) Each prototype project may not exceed a 
total amount of $5,000,000 (based on fiscal year 2017 constant 
dollars), unless--
            ``(A) the Secretary of the military department, or the 
        Secretary's designee, approves a larger amount of funding for 
        the project, not to exceed $25,000,000; and
            ``(B) the Secretary, or the Secretary's designee, submits 
        to the congressional defense committees, within 30 days after 
        approval of such funding for the project, a notification that 
        includes--
                    ``(i) a description of the project;
                    ``(ii) expected funding for the project; and
                    ``(iii) a statement of the anticipated outcome of 
                the project.
    ``(2) The Secretary of Defense may adjust the amounts (and the base 
fiscal year) provided in paragraph (1) on the basis of Department of 
Defense escalation rates.
``Sec. 2447e. Mechanisms to speed deployment of successful weapon 
              system component prototypes
    ``(a) Selection of Prototype Project for Production.--A weapon 
system component or technology prototype project may be selected by the 
service acquisition executive of the military department concerned for 
a follow-on production contract or other transaction without the use of 
competitive procedures, notwithstanding the requirements of section 
2304 of this title, if--
            ``(1) a prototype project addresses a high priority 
        warfighter need;
            ``(2) competitive procedures were used for the selection of 
        parties for participation in the prototype project;
            ``(3) the participants in the project successfully 
        completed the project provided for in the transaction; and
            ``(4) the prototype was demonstrated in a relevant 
        environment.
    ``(b) Special Transfer Authority.--(1) The Secretary of a military 
department may transfer funds that remain available for obligation in 
procurement appropriation accounts of the military department to fund 
the low-rate initial production of a prototype until required funding 
for full-rate production can be submitted and approved through the 
regular budget process of the Department of Defense.
    ``(2) The funds transferred under this subsection to be used for 
production of a prototype shall be for a period not to exceed two 
years, the amount for such period may not exceed $10,000,000, and the 
special transfer authority provided in this subsection may not be used 
more than once to fund procurement of a particular prototype.
    ``(3) The special transfer authority provided in this subsection is 
in addition to any other transfer authority available to the Department 
of Defense.
    ``(c) Notification to Congress.--Within 30 days after the service 
acquisition executive of a military department selects a weapon system 
component or technology prototype project for a follow-on production 
contract or other transaction, the service acquisition executive shall 
notify the congressional defense committees of the selection.
``Sec. 2447f. Definition of weapon system component
    ``In this subchapter, the term `weapon system component' has the 
meaning provided the term `major system component' in section 2446a of 
this title.''.
    (b) Effective Date.--Subchapter II of chapter 144B of title 10, 
United States Code, as added by subsection (a), shall take effect on 
October 1, 2016.

SEC. 4. COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE ACQUISITION 
              PROGRAMS.

    (a) In General.--Chapter 144B of title 10, United States Code, as 
added by section 2, is amended by adding at the end the following new 
subchapter:

  ``SUBCHAPTER III--COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE 
                          ACQUISITION PROGRAMS

``Sec.
``2448a. Program cost and fielding targets in planning major defense 
                            acquisition programs.
``2448b. Independent technical risk assessments.
``2448c. Adherence to requirements and thresholds in major defense 
                            acquisition programs.
``Sec. 2448a. Program cost and fielding targets in planning major 
              defense acquisition programs
    ``(a) Program Cost and Fielding Targets.--Before Milestone A 
approval is granted for a major defense acquisition program, the 
Secretary of Defense shall ensure the program will be affordable and 
fielded when needed by establishing targets for--
            ``(1) the program acquisition unit cost (referred to in 
        this section as the `program cost target'; and
            ``(2) the date for initial operational capability (referred 
        to in this section as the `fielding target').
    ``(b) Considerations.--In establishing targets under subsection (a) 
for the program, the Secretary of Defense shall consider each of the 
following:
            ``(1) The capability needs and timeframe specified in the 
        initial capabilities document, opportunities for incremental 
        deployment of capabilities, and minimum acceptable capability 
        increments.
            ``(2) Resources available to fund the development, 
        production, and life cycle of the program, using a reasonable 
        estimate of future defense budgets.
            ``(3) Procurement quantity objectives.
            ``(4) Trade-offs among cost, schedule, technical risk, and 
        performance objectives identified in the analysis of 
        alternatives required under section 2366a of this title.
            ``(5) The independent cost estimate prepared or approved 
        under section 2334(a)(6) of this title.
            ``(6) The independent technical risk assessment conducted 
        or approved under section 2448b of this title.
    ``(c) Delegation.--The responsibilities of the Secretary of Defense 
in subsection (a) may be delegated only to the Deputy Secretary of 
Defense or the Under Secretary of Defense for Acquisition, Technology, 
and Logistics.
    ``(d) Definitions.--In this section:
            ``(1) The term `program acquisition unit cost' has the 
        meaning provided in section 2432(a) of this title.
            ``(2) The term `initial capabilities document' has the 
        meaning provided in section 2366a(d)(2) of this title.
``Sec. 2448b. Independent technical risk assessments
    ``(a) In General.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall conduct or approve an independent 
technical risk assessment for a major defense acquisition program--
            ``(1) before any decision to grant milestone approval 
        pursuant to section 2366a or 2366b of this title;
            ``(2) before any decision to enter into low-rate initial 
        production or full-rate production; and
            ``(3) at any other time considered appropriate by the Under 
        Secretary.
    ``(b) Categorization of Technical Risk Levels.--The Under Secretary 
shall issue guidance and a framework for categorizing the degree of 
technical risk in a major defense acquisition program and a major 
automated information system.
``Sec. 2448c. Adherence to requirements and thresholds in major defense 
              acquisition programs
    ``(a) Capabilities Determination.--The Secretary of the military 
department concerned shall ensure that the capability development 
document supporting a Milestone A or subsequent milestone for a major 
defense acquisition program may not be submitted to the Joint 
Requirements Oversight Council for approval until the Chief of the 
armed force concerned determines in writing that the requirements in 
the document are necessary and realistic in relation to the program 
cost and fielding targets established under section 2448a(a) of this 
title.
    ``(b) Compliance With Targets Before Milestone B Approval.--A major 
defense acquisition program may not receive Milestone B approval until 
the milestone decision authority for the program determines in writing 
that the estimated program acquisition unit cost and the estimated date 
for initial operational capability for the baseline description for the 
program (established under section 2435) do not exceed the program cost 
and fielding targets established under section 2448a(a) of this title. 
If such estimated cost is higher than the program cost target or if 
such estimated date is later than the fielding target, the milestone 
decision authority may request that the Secretary of Defense increase 
the program cost target or delay the fielding target, as applicable.''.
    (b) Effective Date.--Subchapter III of chapter 144B of title 10, 
United States Code, as added by subsection (a), shall apply with 
respect to major defense acquisition programs that reach Milestone A 
after October 1, 2016.
    (c) Modification of Milestone Decision Authority.--Effective 
October 1, 2016, subsection (d) of section 2430 of title 10, United 
States Code, as added by section 825(a) of the National Defense 
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 
907), is amended--
            (1) in paragraph (2)(A), by inserting ``subject to 
        paragraph (5),'' before ``the Secretary determines''; and
            (2) by adding at the end the following new paragraph:
    ``(5) The authority of the Secretary of Defense to designate an 
alternative milestone decision authority for a program with respect to 
which the Secretary determines that the program is addressing a joint 
requirement, as set forth in paragraph (2)(A), shall apply only for a 
major defense acquisition program that reaches Milestone A after 
October 1, 2016, and before October 1, 2019.''.

SEC. 5. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Reports on Milestone Decision Metrics.--Subchapter III of 
chapter 144B of title 10, United States Code, as added by section 2, is 
amended by adding at the end the following new section:
``Sec. 2448d. Reports on milestone decision metrics
    ``(a) Report on Milestone A.--Not later than 15 days after granting 
Milestone A approval for a major defense acquisition program, the 
milestone decision authority for the program shall provide to the 
congressional defense committees a brief summary report that contains 
the following:
            ``(1) The program cost and fielding targets established by 
        the Secretary of Defense under section 2448a(a) of this title.
            ``(2) The cost and schedule estimates for the program 
        conducted by the military department concerned.
            ``(3) The independent cost estimate for the program 
        conducted or approved under section 2334(a)(6) of this title, 
        and any independent schedule estimate conducted for the 
        program.
            ``(4) A summary of the technical risks associated with the 
        program, as determined by the military department concerned.
            ``(5) A summary of the independent technical risk 
        assessment conducted or approved under section 2448b of this 
        title.
            ``(6) A summary of the sufficiency review conducted by the 
        Director of Cost Assessment and Program Evaluation of the 
        analysis of alternatives performed for the program (as referred 
        to in section 2366a(b)(6) of this title).
            ``(7) Any other information the milestone decision 
        authority considers relevant.
    ``(b) Report on Milestone B.--Not later than 15 days after granting 
Milestone B approval for a major defense acquisition program, the 
milestone decision authority for the program shall provide to the 
congressional defense committees a brief summary report that contains 
the following:
            ``(1) The program cost and fielding targets established by 
        the Secretary of Defense under section 2448a(a) of this title.
            ``(2) The cost and schedule estimates for the program 
        conducted by the military department concerned.
            ``(3) The independent cost estimate for the program 
        conducted or approved under section 2334(a)(6) of this title, 
        and any independent schedule estimate conducted for the 
        program.
            ``(4) The cost and schedule estimates approved for the 
        program by the milestone decision authority.
            ``(5) A summary of the technical risks associated with the 
        program, as determined by the military department concerned.
            ``(6) A summary of the independent technical risk 
        assessment conducted or approved under section 2448b of this 
        title.
            ``(7) A list of critical technologies, if any, associated 
        with the program, that have not been successfully tested in a 
        relevant environment.
            ``(8) A statement of whether the preliminary design review 
        for the program (referred to in section 2366b(a)(1) of this 
        title) has been completed.
            ``(9) A statement of whether a modular open system 
        architecture is being used for the program.
            ``(10) Any other information the milestone decision 
        authority considers relevant.
    ``(c) Report on Milestone C.--Not later than 15 days after granting 
Milestone C approval for a major defense acquisition program, the 
milestone decision authority for the program shall provide to the 
congressional defense committees a brief summary report that contains 
the following:
            ``(1) The cost and schedule estimates for the program 
        conducted by the military department concerned.
            ``(2) The independent cost estimate for the program 
        conducted or approved under section 2334(a)(6) of this title, 
        and any independent schedule estimate conducted for the 
        program.
            ``(3) The cost and schedule estimates approved by the 
        milestone decision authority for the program.
            ``(4) A summary of the production, manufacturing, and 
        fielding risks associated with the program.
    ``(d) Additional Information.--At the request of any of the 
congressional defense committees, the milestone decision authority 
shall submit to the committee further information or underlying 
documentation for the information in a report submitted under 
subsection (a), (b), or (c), including the independent cost and 
schedule estimates and the independent technical risk assessments 
referred to in those subsections.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2448d. Reports on milestone decision metrics.''.

SEC. 6. AMENDMENTS RELATING TO TECHNICAL DATA RIGHTS.

    (a) Rights Relating to Item or Process Developed Exclusively at 
Private Expense.--
            (1) Subsection (a)(2)(C) of section 2320 of title 10, 
        United States Code, is amended--
                    (A) by striking clause (ii) and inserting the 
                following:
                    ``(ii) relates to form, fit, function, or the 
                external interface of an item or process with other 
                items or processes, including any major system 
                interface of a major system component with a major 
                system platform or other major system component;''; and
                    (B) in clause (iii), by inserting after ``or 
                process data'' the following: ``, including data 
                pertaining to a major system component''.
            (2) Subsection (a)(2)(D)(i) of such section is amended--
                    (A) by inserting ``or'' at the end of subclause 
                (I);
                    (B) by striking subclause (II); and
                    (C) by redesignating subclause (III) as subclause 
                (II).
    (b) Rights Relating to Item or Process Developed in Part With 
Federal Funds and in Part at Private Expense.--Subsection (a)(2) of 
section 2320 of such title is further amended--
            (1) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (G) and (H), respectively;
            (2) in subparagraph (E), by striking ``In the case of'' and 
        inserting ``Except as provided in subparagraph (F), in the case 
        of''; and
            (3) by inserting after subparagraph (E) the following new 
        subparagraph (F):
            ``(F) Notwithstanding subparagraph (E), in the case of an 
        external interface that is developed in part with Federal funds 
        and in part at private expense, the United States shall have 
        unlimited rights to--
                    ``(i) use technical data pertaining to such 
                external interface; or
                    ``(ii) release or disclose the technical data to 
                persons outside the government or permit the use of the 
                technical data by such persons.''.
    (c) Definitions.--Section 2320 of such title is further amended--
            (1) in subsection (f), by inserting ``Covered Government 
        Support Contractor Defined.--'' before ``In this section''; and
            (2) by adding at the end the following new subsection:
    ``(g) Additional Definitions.--In this section, the terms `major 
system platform', `major system component', and `major system 
interface' have the meanings provided in section 2446a of this 
title.''.
    (d) Government-Industry Advisory Panel Amendments.--Section 813(b) 
of the National Defense Authorization Act for Fiscal Year 2016 (Public 
Law 114-92; 129 Stat. 892) is amended--
            (1) by adding at the end of the paragraph (1) the 
        following: ``The panel shall develop recommendations for 
        changes to sections 2320 and 2321 of title 10, United States 
        Code, and the regulations implementing such sections.'';
            (2) in paragraph (3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph (D):
                    ``(D) Ensuring that the Department of Defense and 
                Department of Defense contractors have the technical 
                data rights necessary to support the modular open 
                system architecture requirement set forth in section 
                2446a of title 10, United States Code, taking into 
                consideration the distinct characteristics of major 
                system platforms, major system interfaces, and major 
                system components developed exclusively with Federal 
                funds, exclusively at private expense, and with a 
                combination of Federal funds and private expense.''; 
                and
            (3) in paragraph (4), by striking ``September 30, 2016'' 
        and inserting ``December 15, 2016''.
    (e) Amendment Relating to Negotiated Rights for Item or Process 
Developed With Mixed Funding.--Subsection (a)(2)(E) of section 2320 of 
title 10, United States Code, is further amended by striking the period 
at the end of the first sentence in the matter preceding clause (i) and 
all that follows through ``establishment of any such negotiated rights 
shall'' and inserting ``and shall be based on negotiations between the 
United States and the contractor, except in any case in which the 
Secretary of Defense determines, on the basis of criteria established 
in the regulations, that negotiations would not be practicable. The 
establishment of such rights shall''.
    (f) Amendment Relating to Deferred Ordering.--Subsection (b)(9) of 
section 2320 of such title is amended--
            (1) by striking ``at any time'' and inserting ``, until the 
        date occurring five years after acceptance of the last item 
        (other than technical data) under a contract or the date of 
        contract termination, whichever is later,'';
            (2) by striking ``or utilized in the performance of a 
        contract'' and inserting ``in the performance of the 
        contract''; and
            (3) by striking clause (ii) of subparagraph (B) and 
        inserting the following:
                            ``(ii) is described in subsection 
                        (a)(2)(C); and''.
                                 <all>