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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle C—Amendments to General Contracting Authorities, Procedures, and Limitations

P. L. 112-

House Conference Report 112-705

SEC. 823. CODIFICATION AND AMENDMENT RELATING TO LIFE-CYCLE MANAGEMENT AND PRODUCT SUPPORT REQUIREMENTS.

(a) Codification and Amendment-

(1) IN GENERAL- Chapter 137 of title 10, United States Code, as amended by section 331, is further amended by adding at the end the following new section:

`Sec. 2337. Life-cycle management and product support

`(a) Guidance on Life-Cycle Management- The Secretary of Defense shall issue and maintain comprehensive guidance on life-cycle management and the development and implementation of product support strategies for major weapon systems. The guidance issued pursuant to this subsection shall--

`(1) maximize competition and make the best possible use of available Department of Defense and industry resources at the system, subsystem, and component levels; and

`(2) maximize value to the Department of Defense by providing the best possible product support outcomes at the lowest operations and support cost.

`(b) Product Support Managers-

`(1) REQUIREMENT- The Secretary of Defense shall require that each major weapon system be supported by a product support manager in accordance with this subsection.

`(2) RESPONSIBILITIES- A product support manager for a major weapon system shall--

`(A) develop and implement a comprehensive product support strategy for the weapon system;

`(B) use appropriate predictive analysis and modeling tools that can improve material availability and reliability, increase operational availability rates, and reduce operation and sustainment costs;

`(C) conduct appropriate cost analyses to validate the product support strategy, including cost-benefit analyses as outlined in Office of Management and Budget Circular A-94;

`(D) ensure achievement of desired product support outcomes through development and implementation of appropriate product support arrangements;

`(E) adjust performance requirements and resource allocations across product support integrators and product support providers as necessary to optimize implementation of the product support strategy;

`(F) periodically review product support arrangements between the product support integrators and product support providers to ensure the arrangements are consistent with the overall product support strategy;

`(G) prior to each change in the product support strategy or every five years, whichever occurs first, revalidate any business-case analysis performed in support of the product support strategy; and

`(H) ensure that the product support strategy maximizes small business participation at the appropriate tiers.

`(c) Definitions- In this section:

`(1) PRODUCT SUPPORT- The term `product support' means the package of support functions required to field and maintain the readiness and operational capability of major weapon systems, subsystems, and components, including all functions related to weapon system readiness.

`(2) PRODUCT SUPPORT ARRANGEMENT- The term `product support arrangement' means a contract, task order, or any type of other contractual arrangement, or any type of agreement or non-contractual arrangement within the Federal Government, for the performance of sustainment or logistics support required for major weapon systems, subsystems, or components. The term includes arrangements for any of the following:

`(A) Performance-based logistics.

`(B) Sustainment support.

`(C) Contractor logistics support.

`(D) Life-cycle product support.

`(E) Weapon systems product support.

`(3) PRODUCT SUPPORT INTEGRATOR- The term `product support integrator' means an entity within the Federal Government or outside the Federal Government charged with integrating all sources of product support, both private and public, defined within the scope of a product support arrangement.

`(4) PRODUCT SUPPORT PROVIDER- The term `product support provider' means an entity that provides product support functions. The term includes an entity within the Department of Defense, an entity within the private sector, or a partnership between such entities.

`(5) MAJOR WEAPON SYSTEM- The term `major weapon system' means a major system within the meaning of section 2302d(a) of this title.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 137 of such title, as so amended, is further amended by adding at the end the following new item:

`2337. Life-cycle management and product support.'.

(b) Repeal of Superseded Section- Section 805 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84; 10 U.S.C. 2302 note) is repealed.

 		Codification and amendment relating to life-cycle management and product support requirements (sec. 823)

The House bill contained a provision (sec. 813) that would codify and amend the life cycle management and product support requirements for major weapon systems in section 805 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84).

The Senate amendment contained no similar provision.

The Senate recedes with a clarifying amendment.

House Report 112-479

SECTION 813--CODIFICATION AND AMENDMENT RELATING TO LIFE-CYCLE MANAGEMENT AND PRODUCT SUPPORT REQUIREMENTS

This section would codify section 805 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84) as section 2335 of title 10, United States Code, and include a new requirement for a product support manager for a major weapon system to use advanced predictive analysis technologies to improve material availability and reliability, increase operational availability rates, and reduce operation and sustainment costs. This section would also ensure a product support strategy maximizes small business participation at the appropriate tiers in a manner that ensures that small businesses are not inappropriately selected for performance as a prime contractor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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