HR 1830 IHCommentsClose CommentsPermalink

To improve the organization and procedures of the Department of Defense for the acquisition of major weapon systems, and for other purposes.CommentsClose CommentsPermalink

March 31, 2009CommentsClose CommentsPermalink

Mrs. TAUSCHER (for herself and Mr. SPRATT) introduced the following bill; which was referred to the Committee on Armed ServicesCommentsClose CommentsPermalink

To improve the organization and procedures of the Department of Defense for the acquisition of major weapon systems, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Weapon Systems Acquisition Reform Act of 2009’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Congressional defense committees.CommentsClose CommentsPermalink

TITLE I--ACQUISITION ORGANIZATION

Sec. 101. Reports on systems engineering capabilities of the Department of Defense.CommentsClose CommentsPermalink





Sec. 102. Director of Developmental Test and Evaluation.CommentsClose CommentsPermalink





Sec. 103. Assessment of technological maturity of critical technologies of major defense acquisition programs by the Director of Defense Research and Engineering.CommentsClose CommentsPermalink





Sec. 104. Director of Independent Cost Assessment.CommentsClose CommentsPermalink





Sec. 105. Role of the commanders of the combatant commands in identifying joint military requirements.CommentsClose CommentsPermalink

TITLE II--ACQUISITION POLICY

Sec. 201. Consideration of trade-offs among cost, schedule, and performance in the acquisition of major weapon systems.CommentsClose CommentsPermalink





Sec. 202. Preliminary design review for major defense acquisition programs.CommentsClose CommentsPermalink





Sec. 203. Maximization of competition throughout the life cycle of major defense acquisition programs.CommentsClose CommentsPermalink





Sec. 204. Critical cost growth in major defense acquisition programs.CommentsClose CommentsPermalink





Sec. 205. Organizational conflicts of interest in the acquisition of major weapon systems.CommentsClose CommentsPermalink





Sec. 206. Awards for Department of Defense personnel for excellence in the acquisition of products and services.CommentsClose CommentsPermalink

SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES.

In this Act, the term ‘congressional defense committees’ has the meaning given that term in section 101(a)(16) of title 10, United States Code.CommentsClose CommentsPermalink

TITLE I--ACQUISITION ORGANIZATIONCommentsClose CommentsPermalink

SEC. 101. REPORTS ON SYSTEMS ENGINEERING CAPABILITIES OF THE DEPARTMENT OF DEFENSE.

(a) Reports by Service Acquisition Executives- Not later than 180 days after the date of the enactment of this Act, the service acquisition executive of each military department shall submit to the Under Secretary of Defense for Acquisition, Technology, and Logistics a report setting forth the following:CommentsClose CommentsPermalink





(1) A description of the extent to which such military department has in place development planning organizations and processes staffed by adequate numbers of personnel with appropriate training and expertise to ensure that--CommentsClose CommentsPermalink





(A) key requirements, acquisition, and budget decisions made for each major weapon system prior to Milestones A and B are supported by a rigorous systems analysis and systems engineering process;CommentsClose CommentsPermalink





(B) the systems engineering strategy for each major weapon system includes a robust program for improving reliability, availability, and maintainability as an integral part of design and development; andCommentsClose CommentsPermalink





(C) systems engineering requirements, including reliability, availability, and maintainability requirements, are identified during the Joint Capabilities Integration Development System process and incorporated into contract requirements for each major weapon system.CommentsClose CommentsPermalink





(2) A description of the actions that such military department has taken, or plans to take, to--CommentsClose CommentsPermalink





(A) establish needed development planning and systems engineering organizations and processes; andCommentsClose CommentsPermalink





(B) attract, develop, retain, and reward systems engineers with appropriate levels of hands-on experience and technical expertise to meet the needs of such military department.CommentsClose CommentsPermalink





(b) Report by Under Secretary of Defense for Acquisition, Technology, and Logistics- Not later than 270 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the system engineering capabilities of the Department of Defense. The report shall include, at a minimum, the following:CommentsClose CommentsPermalink





(1) An assessment by the Under Secretary of the reports submitted by the service acquisition executives pursuant to subsection (a) and of the adequacy of the actions that each military department has taken, or plans to take, to meet the systems engineering and development planning needs of such military department.CommentsClose CommentsPermalink





(2) An assessment of each of the recommendations of the report on Pre-Milestone A and Early-Phase Systems Engineering of the Air Force Studies Board of the National Research Council, including the recommended checklist of systems engineering issues to be addressed prior to Milestones A and B, and the extent to which such recommendations should be implemented throughout the Department of Defense.CommentsClose CommentsPermalink

SEC. 102. DIRECTOR OF DEVELOPMENTAL TEST AND EVALUATION.

(a) Establishment of Position-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 4 of title 10, United States Code, is amended by inserting after section 139b the following new section:CommentsClose CommentsPermalink

‘Sec. 139c. Director of Developmental Test and Evaluation

‘(a) There is a Director of Developmental Test and Evaluation, who shall be appointed by the Secretary of Defense from among individuals with an expertise in acquisition and testing.CommentsClose CommentsPermalink





‘(b)(1) The Director of Developmental Test and Evaluation shall be the principal advisor to the Secretary of Defense and the Under Secretary of Defense for Acquisition, Technology, and Logistics on developmental test and evaluation in the Department of Defense.CommentsClose CommentsPermalink





‘(2) The Director shall be subject to the supervision of the Under Secretary of Defense for Acquisition, Technology, and Logistics and shall report to the Under Secretary.CommentsClose CommentsPermalink





‘(c) The Director of Developmental Test and Evaluation shall--CommentsClose CommentsPermalink





‘(1) develop policies and guidance for the developmental test and evaluation activities of the Department of Defense;CommentsClose CommentsPermalink





‘(2) monitor and review the developmental test and evaluation activities of the Department of Defense;CommentsClose CommentsPermalink





‘(3) review and approve the test and evaluation master plan for each major defense acquisition program of the Department of Defense;CommentsClose CommentsPermalink





‘(4) supervise the activities of the Director of the Department of Defense Test Resource Management Center under section 196 of this title;CommentsClose CommentsPermalink





‘(5) review the organizations and capabilities of the military departments with respect to developmental test and evaluation and identify needed changes or improvements to such organizations and capabilities; andCommentsClose CommentsPermalink





‘(6) perform such other activities relating to the developmental test and evaluation activities of the Department of Defense as the Under Secretary of Defense for Acquisition, Technology, and Logistics may prescribe.CommentsClose CommentsPermalink





‘(d) The Director of Developmental Test and Evaluation shall have access to all records and data of the Department of Defense (including the records and data of each military department) that the Director considers necessary in order to carry out the Director’s duties under this section.CommentsClose CommentsPermalink





‘(e) The Director of Developmental Test and Evaluation shall submit to Congress each year a report on the developmental test and evaluation activities of the Department of Defense during the preceding year.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 4 of such title is amended by inserting after the item relating to section 139b the following new item:CommentsClose CommentsPermalink





‘139c. Director of Developmental Test and Evaluation.’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENT- Section 196(f) of such title is amended by striking ‘the Under Secretary of Defense for Acquisition, Technology, and Logistics’ and all that follows and inserting ‘the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Director of Developmental Test and Evaluation.’.CommentsClose CommentsPermalink





(b) Reports on Developmental Testing Organizations and Personnel-CommentsClose CommentsPermalink





(1) REPORTS BY SERVICE ACQUISITION EXECUTIVES- Not later than 180 days after the date of the enactment of this Act, the service acquisition executive of each military department shall submit to the Director of Developmental Test and Evaluation a report on the extent to which the test organizations of such military department have in place, or have effective plans to develop, adequate numbers of personnel with appropriate expertise for each purpose as follows:CommentsClose CommentsPermalink





(A) To ensure that testing requirements are appropriately addressed in the translation of operational requirements into contract specifications, in the source selection process, and in the preparation of requests for proposals on all major defense acquisition programs.CommentsClose CommentsPermalink





(B) To participate in the planning of developmental test and evaluation activities, including the preparation and approval of a test and evaluation master plan for each major defense acquisition program.CommentsClose CommentsPermalink





(C) To participate in and oversee the conduct of developmental testing, the analysis of data, and the preparation of evaluations and reports based on such testing.CommentsClose CommentsPermalink





(2) FIRST ANNUAL REPORT BY DIRECTOR OF DEVELOPMENTAL TEST AND EVALUATION- The first annual report submitted to Congress by the Director of Developmental Test and Evaluation under section 139c(e) of title 10, United States Code (as added by subsection (a)), shall be submitted not later than one year after the date of the enactment of this Act, and shall include an assessment by the Director of the reports submitted by the service acquisition executives to the Director under paragraph (1).CommentsClose CommentsPermalink

SEC. 103. ASSESSMENT OF TECHNOLOGICAL MATURITY OF CRITICAL TECHNOLOGIES OF MAJOR DEFENSE ACQUISITION PROGRAMS BY THE DIRECTOR OF DEFENSE RESEARCH AND ENGINEERING.

(a) Assessment by Director of Defense Research and Engineering-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 139a of title 10, United States Code, is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(c)(1) The Director of Defense Research and Engineering shall periodically review and assess the technological maturity and integration risk of critical technologies of the major defense acquisition programs of the Department of Defense and report on the findings of such reviews and assessments to the Under Secretary of Defense for Acquisition, Technology, and Logistics.CommentsClose CommentsPermalink





‘(2) The Director shall submit to the Secretary of Defense and to Congress each year a report on the technological maturity and integration risk of critical technologies of the major defense acquisition programs of the Department of Defense.’.CommentsClose CommentsPermalink





(2) FIRST ANNUAL REPORT- The first annual report under subsection (c)(2) of section 139a of title 10, United States Code (as added by paragraph (1)), shall be submitted to Congress not later than March 1, 2011, and shall address the results of reviews and assessments conducted by the Director of Defense Research and Engineering pursuant to subsection (c)(1) of such section (as so added) during the preceding calendar year.CommentsClose CommentsPermalink





(b) Report on Resources for Implementation- Not later than 120 days after the date of the enactment of this Act, the Director of Defense Research and Engineering shall submit to the congressional defense committees a report describing any additional resources that may be required by the Director, and by other science and technology elements of the Department of Defense, to carry out the following:CommentsClose CommentsPermalink





(1) The requirements under the amendment made by subsection (a).CommentsClose CommentsPermalink





(2) The technological maturity assessments required by section 2366b(a) of title 10, United States Code, as amended by section 202 of this Act.CommentsClose CommentsPermalink





(3) The requirements of Department of Defense Instruction 5000, as revised.CommentsClose CommentsPermalink

SEC. 104. DIRECTOR OF INDEPENDENT COST ASSESSMENT.

(a) Director of Independent Cost Assessment-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 4 of title 10, United States Code, as amended by section 102 of this Act, is further amended by inserting after section 139c the following new section:CommentsClose CommentsPermalink

‘Sec. 139d. Director of Independent Cost Assessment

‘(a) There is a Director of Independent Cost Assessment in the Department of Defense, appointed by the President, by and with the advice and consent of the Senate. The Director shall be appointed without regard to political affiliation and solely on the basis of fitness to perform the duties of the Director.CommentsClose CommentsPermalink





‘(b) The Director is the principal advisor to the Secretary of Defense, the Under Secretary of Defense for Acquisition, Technology, and Logistics, and the Under Secretary of Defense (Comptroller) on cost estimation and cost analyses for the acquisition programs of the Department of Defense and the principal cost estimation official within the senior management of the Department of Defense. The Director shall--CommentsClose CommentsPermalink





‘(1) prescribe, by authority of the Secretary of Defense, policies and procedures for the conduct of cost estimation and cost analysis for the acquisition programs of the Department of Defense;CommentsClose CommentsPermalink





‘(2) provide guidance to and consult with the Secretary of Defense, the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and the Secretaries of the military departments with respect to cost estimation in the Department of Defense in general and with respect to specific cost estimates and cost analyses to be conducted in connection with a major defense acquisition program under chapter 144 of this title or a major automated information system program under chapter 144A of this title;CommentsClose CommentsPermalink





‘(3) establish guidance on confidence levels for cost estimates on major defense acquisition programs and require the disclosure of all such confidence levels;CommentsClose CommentsPermalink





‘(4) monitor and review all cost estimates and cost analyses conducted in connection with major defense acquisition programs and major automated information system programs; andCommentsClose CommentsPermalink





‘(5) conduct independent cost estimates and cost analyses for major defense acquisition programs and major automated information system programs--CommentsClose CommentsPermalink





‘(A) in advance of--CommentsClose CommentsPermalink





‘(i) any certification under section 2366a or 2366b of this title;CommentsClose CommentsPermalink





‘(ii) any certification under section 2433(e)(2) of this title; andCommentsClose CommentsPermalink





‘(iii) any report under section 2445c(f) of this title; andCommentsClose CommentsPermalink





‘(B) whenever necessary to ensure that an estimate or analysis under paragraph (4) is unbiased, fair, and reliable.CommentsClose CommentsPermalink





‘(c)(1) The Director may communicate views on matters within the responsibility of the Director directly to the Secretary of Defense and the Deputy Secretary of Defense without obtaining the approval or concurrence of any other official within the Department of Defense.CommentsClose CommentsPermalink





‘(2) The Director shall consult closely with, but the Director and the Director’s staff shall be independent of, the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and all other officers and entities of the Department of Defense responsible for acquisition and budgeting.CommentsClose CommentsPermalink





‘(d)(1) The Secretary of a military department shall report promptly to the Director the results of all cost estimates and cost analyses conducted by the military department and all studies conducted by the military department in connection with cost estimates and cost analyses for major defense acquisition programs of the military department.CommentsClose CommentsPermalink





‘(2) The Director may make comments on cost estimates and cost analyses conducted by a military department for a major defense acquisition program, request changes in such cost estimates and cost analyses to ensure that they are fair and reliable, and develop or require the development of independent cost estimates or cost analyses for such program, as the Director determines to be appropriate.CommentsClose CommentsPermalink





‘(3) The Director shall have access to any records and data in the Department of Defense (including the records and data of each military department) that the Director considers necessary to review in order to carry out the Director’s duties under this section.CommentsClose CommentsPermalink





‘(e)(1) The Director shall prepare an annual report summarizing the cost estimation and cost analysis activities of the Department of Defense during the previous year and assessing the progress of the Department in improving the accuracy of its costs estimates and analyses.CommentsClose CommentsPermalink





‘(2) Each report under this subsection shall be submitted concurrently to the Secretary of Defense, the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and Congress not later than 10 days after the transmission of the budget for the next fiscal year under section 1105 of title 31. The Director shall ensure that a report submitted under this subsection does not include any information, such as proprietary or source selection sensitive information, that could undermine the integrity of the acquisition process.CommentsClose CommentsPermalink





‘(3) The Secretary may comment on any report of the Director to Congress under this subsection.CommentsClose CommentsPermalink





‘(f) The President shall include in the budget transmitted to Congress pursuant to section 1105 of title 31 for each fiscal year a separate statement of estimated expenditures and proposed appropriations for that fiscal year for the Director of Independent Cost Assessment in carrying out the duties and responsibilities of the Director under this section.CommentsClose CommentsPermalink





‘(g) The Secretary of Defense shall ensure that the Director has sufficient professional staff of military and civilian personnel to enable the Director to carry out the duties and responsibilities of the Director under this section.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 4 of such title, as so amended, is further amended by inserting after the item relating to section 139c the following new item:CommentsClose CommentsPermalink





‘139d. Director of Independent Cost Assessment.’.CommentsClose CommentsPermalink





(b) Report on Monitoring of Operating and Support Costs for MDAPs-CommentsClose CommentsPermalink





(1) REPORT TO SECRETARY OF DEFENSE- Not later than one year after the date of the enactment of this Act, the Director of Independent Cost Assessment under section 139d of title 10 United States Code (as added by subsection (a)), shall review existing systems and methods of the Department of Defense for tracking and assessing operating and support costs on major defense acquisition programs and submit to the Secretary of Defense a report on the finding and recommendations of the Director as a result of the review.CommentsClose CommentsPermalink





(2) TRANSMITTAL TO CONGRESS- Not later than 30 days after receiving the report required by paragraph (1), the Secretary shall transmit the report to the congressional defense committees, together with any comments on the report the Secretary considers appropriate.CommentsClose CommentsPermalink





(c) Transfer of Personnel and Functions of Cost Analysis Improvement Group- The personnel and functions of the Cost Analysis Improvement Group of the Department of Defense are hereby transferred to the Director of Independent Cost Assessment under section 139d of title 10, United States Code (as so added), and shall report directly to the Director.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 2306b(i)(1)(B) of title 10, United States Code, is amended by striking ‘Cost Analysis Improvement Group of the Department of Defense’ and inserting ‘Director of Independent Cost Assessment’.CommentsClose CommentsPermalink





(2) Section 2366a(a)(4) of such title is amended by striking ‘has been submitted’ and inserting ‘has been approved by the Director of Independent Cost Assessment’.CommentsClose CommentsPermalink





(3) Section 2366b(a)(1)(C) of such title is amended by striking ‘have been developed to execute’ and inserting ‘have been approved by the Director of Independent Cost Assessment to provide for the execution of’.CommentsClose CommentsPermalink





(4) Section 2433(e)(2)(B)(iii) of such title is amended by striking ‘are reasonable’ and inserting ‘have been determined by the Director of Independent Cost Assessment to be reasonable’.CommentsClose CommentsPermalink





(5) Subparagraph (A) of section 2434(b)(1) of such title is amended to read as follows:CommentsClose CommentsPermalink





‘(A) be prepared or approved by the Director of Independent Cost Assessment; and’.CommentsClose CommentsPermalink





(6) Section 2445c(f)(3) of such title is amended by striking ‘are reasonable’ and inserting ‘have been determined by the Director of Independent Cost Assessment to be reasonable’.CommentsClose CommentsPermalink

SEC. 105. ROLE OF THE COMMANDERS OF THE COMBATANT COMMANDS IN IDENTIFYING JOINT MILITARY REQUIREMENTS.

Section 181(d) of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) by inserting ‘(1)’ before ‘The Under Secretary’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(2) The Council shall seek and consider input from the commanders of the combatant commands in carrying out its mission under paragraphs (1) and (2) of subsection (b) and in conducting periodic reviews in accordance with the requirements of subsection (e).’.CommentsClose CommentsPermalink

TITLE II--ACQUISITION POLICYCommentsClose CommentsPermalink

SEC. 201. CONSIDERATION OF TRADE-OFFS AMONG COST, SCHEDULE, AND PERFORMANCE IN THE ACQUISITION OF MAJOR WEAPON SYSTEMS.

(a) Consideration of Trade-Offs-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Defense shall develop and implement mechanisms to ensure that trade-offs between cost, schedule, and performance are considered as part of the process for developing requirements for major weapon systems.CommentsClose CommentsPermalink





(2) ELEMENTS- The mechanisms required under this subsection shall ensure, at a minimum, that--CommentsClose CommentsPermalink





(A) Department of Defense officials responsible acquisition, budget, and cost estimating functions are provided an appropriate opportunity to develop estimates and raise cost and schedule matters before performance requirements are established for major weapon systems; andCommentsClose CommentsPermalink





(B) consideration is given to fielding major weapon systems through incremental or spiral acquisition, while deferring technologies that are not yet mature, and capabilities that are likely to significantly increase costs or delay production, until later increments or spirals.CommentsClose CommentsPermalink





(3) MAJOR WEAPONS SYSTEM DEFINED- In this subsection, the term ‘major weapon system’ has the meaning given that term in section 2379(d) of title 10, United States Code.CommentsClose CommentsPermalink





(b) Duties of Joint Requirements Oversight Council- Section 181(b)(1) of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subparagraph (A), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in subparagraph (B), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) in ensuring the consideration of trade-offs among cost, schedule and performance for joint military requirements;’.CommentsClose CommentsPermalink

SEC. 202. PRELIMINARY DESIGN REVIEW FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

Section 2366b(a) of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) by redesignating paragraph (2) as paragraph (3);CommentsClose CommentsPermalink





(3) by inserting after paragraph (1) the following new paragraph (2):CommentsClose CommentsPermalink





‘(2) has received a preliminary design review (PDR) and conducted a formal post-preliminary design review assessment, and certifies on the basis of such assessment that the program demonstrates a high likelihood of accomplishing its intended mission; and’; andCommentsClose CommentsPermalink





(4) in paragraph (3), as redesignated by paragraph (2) of this section--CommentsClose CommentsPermalink





(A) in subparagraph (D), by striking the semicolon and inserting ‘, as determined by the Milestone Decision Authority on the basis of an independent review and assessment by the Director of Defense Research and Engineering; and’;CommentsClose CommentsPermalink





(B) by striking subparagraph (E); andCommentsClose CommentsPermalink





(C) by redesignating subparagraph (F) as subparagraph (E).CommentsClose CommentsPermalink

SEC. 203. MAXIMIZATION OF COMPETITION THROUGHOUT THE LIFE CYCLE OF MAJOR DEFENSE ACQUISITION PROGRAMS.

(a) Maximization of Competition- The Secretary of Defense shall ensure that the acquisition plan for each major defense acquisition program includes measures to maximize competition at both the prime contract level and the subcontract level of such program throughout the life cycle of such program.CommentsClose CommentsPermalink





(b) Measures To Maximize Competition- The measures to maximize competition utilized for purposes of subsection (a) may include, but are not limited to, measures to achieve the following, where cost-effective:CommentsClose CommentsPermalink





(1) Competitive prototyping.CommentsClose CommentsPermalink





(2) Dual-sourcing.CommentsClose CommentsPermalink





(3) Funding of a second source for interchangeable, next-generation prototype systems or subsystems.CommentsClose CommentsPermalink





(4) Utilization of modular, open architectures to enable competition for upgrades.CommentsClose CommentsPermalink





(5) Periodic competitions for subsystem upgrades.CommentsClose CommentsPermalink





(6) Licensing of additional suppliers.CommentsClose CommentsPermalink





(7) Requirements for Government oversight or approval of make or buy decisions to ensure competition at the subsystem level.CommentsClose CommentsPermalink





(8) Periodic system or program reviews to address long-term competitive effects of program decisions.CommentsClose CommentsPermalink





(9) Consideration of competition at the subcontract level and in make or buy decisions as a factor in proposal evaluations.CommentsClose CommentsPermalink





(c) Competitive Prototyping- The Secretary of Defense shall modify the acquisition regulations of the Department of Defense to ensure with respect to competitive prototyping for major defense acquisition programs the following:CommentsClose CommentsPermalink





(1) That the acquisition strategy for each major defense acquisition program provides for two or more competing teams to produce prototypes before Milestone B approval (or Key Decision Point B approval in the case of a space program) unless the milestone decision authority for such program waives the requirement on the basis of a determination that, but for such waiver, the Department would be unable to meet critical national security objectives.CommentsClose CommentsPermalink





(2) That if the milestone decision authority waives the requirement for prototypes produced by two or more teams for a major defense acquisition program under paragraph (1), the acquisition strategy for the program provides for the production of at least one prototype before Milestone B approval (or Key Decision Point B approval in the case of a space program) unless the milestone decision authority waives such requirement on the basis of a determination that, but for such waiver, the Department would be unable to meet critical national security objectives.CommentsClose CommentsPermalink





(3) That whenever a milestone decision authority authorizes a waiver under paragraph (1) or (2), the waiver, the determination upon which the waiver is based, and the reasons for the determination are submitted in writing to the congressional defense committees not later than 30 days after the waiver is authorized.CommentsClose CommentsPermalink





(d) Major Defense Acquisition Program Defined- In this section, the term ‘major defense acquisition program’ has the meaning given that term in section 2430 of title 10, United States Code.CommentsClose CommentsPermalink





(e) Applicability- This section shall apply to any acquisition plan for a major defense acquisition program that is developed or revised on or after the date that is 60 days after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 204. CRITICAL COST GROWTH IN MAJOR DEFENSE ACQUISITION PROGRAMS.

(a) Authorized Actions in Event of Critical Cost Growth- Section 2433(e)(2) of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) by redesignating subparagraph (C) as subparagraph (D);CommentsClose CommentsPermalink





(2) by striking subparagraph (B); andCommentsClose CommentsPermalink





(3) by inserting after subparagraph (A) the following new subparagraphs (B) and (C):CommentsClose CommentsPermalink





‘(B) terminate such acquisition program, unless the Secretary determines that the continuation of such program is essential to the national security of the United States and submits a written certification in accordance with subparagraph (C)(i) accompanied by a report setting forth the assessment carried out pursuant to subparagraph (A) and the basis for each determination made in accordance with clauses (I) through (IV) of subparagraph (C)(i), together with supporting documentation;CommentsClose CommentsPermalink





‘(C) if the program is not terminated--CommentsClose CommentsPermalink





‘(i) submit to Congress, before the end of the 60-day period beginning on the day the Selected Acquisition Report containing the information described in subsection (g) is required to be submitted under section 2432(f) of this title, a written certification stating that--CommentsClose CommentsPermalink





‘(I) such acquisition program is essential to national security;CommentsClose CommentsPermalink





‘(II) there are no alternatives to such acquisition program which will provide equal or greater capability to meet a joint military requirement (as that term is defined in section 181(g)(1) of this title) at less cost;CommentsClose CommentsPermalink





‘(III) the new estimates of the program acquisition unit cost or procurement unit cost were arrived at in accordance with the requirements of section 139d of this title and are reasonable; andCommentsClose CommentsPermalink





‘(IV) the management structure for the acquisition program is adequate to manage and control program acquisition unit cost or procurement unit cost;CommentsClose CommentsPermalink





‘(ii) rescind the most recent Milestone approval (or Key Decision Point approval in the case of a space program) for such program and withdraw any associated certification under section 2366a or 2366b of this title; andCommentsClose CommentsPermalink





‘(iii) require a new Milestone approval (or Key Decision Point approval in the case of a space program) for such program before entering into a new contract, exercising an option under an existing contract, or otherwise extending the scope of an existing contract under such program; and’.CommentsClose CommentsPermalink





(b) Total Expenditure for Procurement Resulting in Treatment as MDAP- Section 2430(a)(2) of such title is amended by inserting ‘, including all planned increments or spirals,’ after ‘an eventual total expenditure for procurement’.CommentsClose CommentsPermalink

SEC. 205. ORGANIZATIONAL CONFLICTS OF INTEREST IN THE ACQUISITION OF MAJOR WEAPON SYSTEMS.

(a) Revised Regulations Required- Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall revise the Defense Supplement to the Federal Acquisition Regulation to address organizational conflicts of interest by contractors in the acquisition of major weapon systems.CommentsClose CommentsPermalink





(b) Elements- The revised regulations required by subsection (a) shall, at a minimum--CommentsClose CommentsPermalink





(1) ensure that the Department of Defense receives advice on systems architecture and systems engineering matters with respect to major weapon systems from federally funded research and development centers or other sources independent of the prime contractor;CommentsClose CommentsPermalink





(2) require that a contract for the performance of systems engineering and technical assistance (SETA) functions with regard to a major weapon system contains a provision prohibiting the contractor or any affiliate of the contractor from having a direct financial interest in the development or construction of the weapon system or any component thereof; andCommentsClose CommentsPermalink





(3) provide for fair and objective ‘make-buy’ decisions by the prime contractor on a major weapon system by--CommentsClose CommentsPermalink





(A) requiring prime contractors to give full and fair consideration to qualified sources other than the prime contractor for the development or construction of major subsystems and components of the weapon system;CommentsClose CommentsPermalink





(B) providing for government oversight of the process by which prime contractors consider such sources and determine whether to conduct such development or construction in-house or through a subcontract;CommentsClose CommentsPermalink





(C) where appropriate, requiring that program managers, rather than prime contractors, make the determination whether such development or construction should be conducted in-house or through a subcontract; andCommentsClose CommentsPermalink





(D) providing for the consideration of prime contractors ‘make-buy’ decisions in past performance evaluations.CommentsClose CommentsPermalink





(c) Organizational Conflict of Interest Review Board-CommentsClose CommentsPermalink





(1) ESTABLISHMENT REQUIRED- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall establish within the Department of Defense a board to be known as the ‘Organizational Conflict of Interest Review Board’.CommentsClose CommentsPermalink





(2) DUTIES- The Board shall have the following duties:CommentsClose CommentsPermalink





(A) To advise the Under Secretary of Defense for Acquisition, Technology, and Logistics on policies relating to organizational conflicts of interest in the acquisition of major weapon systems.CommentsClose CommentsPermalink





(B) To advise program managers on steps to comply with the requirements of the revised regulations required by this section and to address organizational conflicts of interest in the acquisition of major weapon systems.CommentsClose CommentsPermalink





(C) To advise appropriate officials of the Department on organizational conflicts of interest arising in proposed mergers of defense contractors.CommentsClose CommentsPermalink





(d) Major Weapon System Defined- In this section, the term ‘major weapon system’ has the meaning given that term in section 2379(d) of title 10, United States Code.CommentsClose CommentsPermalink

SEC. 206. AWARDS FOR DEPARTMENT OF DEFENSE PERSONNEL FOR EXCELLENCE IN THE ACQUISITION OF PRODUCTS AND SERVICES.

(a) In General- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall commence carrying out a program to recognize excellent performance by individuals and teams of members of the Armed Forces and civilian personnel of the Department of Defense in the acquisition of products and services for the Department of Defense.CommentsClose CommentsPermalink





(b) Elements- The program required by subsection (a) shall include the following:CommentsClose CommentsPermalink





(1) Procedures for the nomination by the personnel of the military departments and the Defense Agencies of individuals and teams of members of the Armed Forces and civilian personnel of the Department of Defense for eligibility for recognition under the program.CommentsClose CommentsPermalink





(2) Procedures for the evaluation of nominations for recognition under the program by one or more panels of individuals from the government, academia, and the private sector who have such expertise, and are appointed in such manner, as the Secretary shall establish for purposes of the program.CommentsClose CommentsPermalink





(c) Award of Cash Bonuses- As part of the program required by subsection (a), the Secretary may award to any individual recognized pursuant to the program a cash bonus authorized by any other provision of law to the extent that the performance of such individual so recognized warrants the award of such bonus under such provision of law.CommentsClose CommentsPermalink