[Congressional Record Volume 166, Number 119 (Monday, June 29, 2020)]
[Senate]
[Page S3691]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2235. Mr. ROUNDS submitted an amendment intended to be proposed by 
him to the bill S. 4049, to authorize appropriations for fiscal year 
2021 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle F of title VIII, add the following:

     SEC. 884. PILOT PROGRAM EXPLORING THE USE OF CONSUMPTION-
                   BASED SOLUTIONS TO ADDRESS SOFTWARE-INTENSIVE 
                   WARFIGHTING CAPABILITY.

       (a) Finding.--In its final report, the Section 809 Panel 
     recommended the adoption of consumption-based approaches at 
     the Department of Defense, stating, ``More things will be 
     sold as a service in the future. XaaS could really mean 
     everything in the context of the Internet of things (IoT). 
     Consumption-based solutions are appearing in many industry 
     sectors, from last mile transportation (e.g., bike shares and 
     electric scooters) to agriculture (e.g., tractor-as-a-service 
     for farmers in developing countries). Most smart phone users 
     are familiar with software updates that provide bug fixes or 
     new features. A more extreme example of technology innovation 
     enabled by the IoT is the ability to deliver physical 
     performance improvements to vehicles through over-the-air 
     software updates. . . In the not-so-distant future, cloud 
     computing and the IoT will enable consumption-based solution 
     offerings and delivery models that are hard to imagine 
     today.''
       (b) Sense of Congress.--It is the sense of Congress--
       (1) that the Department of Defense should take advantage of 
     ``as-a-service'' or ``aaS'' approaches in commercial 
     capability development, particularly where the capability is 
     software-defined, and cloud-enabled;
       (2) to support the Department of Defense's commitment to 
     new approaches to development and acquisition of software;
       (3) that the Department should explore a variety of 
     approaches, to include the use of consumption-based solutions 
     for software-intensive warfighting capability; and
       (4) that, in conducting activities under the pilot program 
     established under this program, the Department should use the 
     Software pathway under the new Adaptive Acquisition 
     Framework.
       (c) In General.--Subject to the availability of 
     appropriations, the Secretary of Defense is authorized to 
     establish a pilot program to explore the use of consumption-
     based solutions to address software-intensive warfighting 
     capability.
       (d) Selection of Initiatives.--The Secretary of each 
     military department and the commander of each combatant 
     command with acquisition authority shall propose for 
     selection by the Secretary of Defense for the pilot program 
     at least one and not more than three initiatives that are 
     well-suited to explore consumption-based solutions to address 
     software-intensive warfighting capability. The initiatives 
     may be new or existing programs of record and shall focus on 
     software-defined or machine-enabled warfighting applications, 
     and may include applications that--
       (1) rapidly analyze sensor data;
       (2) secure warfighter networks, including multi-level 
     security;
       (3) swiftly transport information across various networks 
     and network modalities; or
       (4) otherwise enable joint all-domain operational concepts, 
     including in a contested environment.
       (e) Contract Requirements.--Contracts for consumption-based 
     solutions entered into pursuant to the pilot program shall 
     provide for--
       (1) the solution to be measurable on a frequent interval 
     customary for the type of solution;
       (2) the contractor to notify the government when 
     consumption reaches 75 percent and 90 percent of the contract 
     funded amount; and
       (3) discretion for the contracting officer to add new 
     features or capabilities without additional competition for 
     the contract, provided that the amount of the new features or 
     capabilities does not exceed 25 percent of the total contract 
     value.
       (f) Duration of Initiatives.--Each initiative carried out 
     under the pilot program shall be carried out during the 
     three-year period following selection of the initiative.
       (g) Monitoring and Evaluation of Pilot Program.--The 
     Director of the Office of Cost Assessment and Program 
     Evaluation shall establish continuous monitoring to evaluate 
     the pilot program established under subsection (c), including 
     collecting data on cost, schedule, and performance from the 
     program office, the user community, and the contractors.
       (h) Reports.--
       (1) Initial report.--Not later than January 31, 2021, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on initiatives selected for the 
     pilot program, roles and responsibilities for implementing 
     the pilot program, and the monitoring and evaluation approach 
     for the pilot.
       (2) Progress report.--Not later than April 15, 2021, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the progress of the 
     initiatives.
       (3) Final report.--Not later than 3 years after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     the cost, schedule, and performance outcomes of the 
     initiatives. The report shall also include lessons learned 
     about the use of consumption-based solutions for software-
     intensive capabilities and any recommendations for statutory 
     or regulatory changes to facilitate their use.
       (i) Consumption-based Solution Defined.--In this section, 
     the term ``consumption-based solution'' means any combination 
     of software, hardware or equipment, and labor or services 
     that provides a seamless capability that is metered and 
     billed based on actual usage and predetermined pricing per 
     resource unit, and includes the ability to rapidly scale 
     capacity up or down.
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