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

Subtitle A—Acquisition Policy and Management.

P. L. 116-

House Conference Report   116-617

(1) by striking ``major weapon system'' each place it appears and inserting ``covered system'';

(2) by striking ``major weapon systems'' each place it appears and inserting ``covered systems'';

(3) by striking ``weapon system'' each place it appears and inserting ``covered system'';

(4) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively;

(5) by inserting after subsection (a) the following new subsection:

``(b) Life Cycle Sustainment Plan.--Before granting Milestone B approval (or the equivalent), the milestone decision authority shall ensure that each covered system has an
approved life cycle sustainment plan. The life cycle sustainment plan shall include--

``(1) a comprehensive product support strategy;

``(2) performance goals, including key performance parameters for sustainment, key system attributes of the covered system, and other appropriate metrics;

``(3) an approved life-cycle cost estimate for the covered system;

``(4) affordability constraints and key cost factors that could affect the operating and support costs of the covered system;

``(5) sustainment risks and proposed mitigation plans for such risks;

``(6) engineering and design considerations that support cost-effective sustainment of the covered system;

``(7) a technical data and intellectual property management plan for product support; and
``(8) major maintenance and overhaul requirements that will be required during the life cycle of the covered system.'';

(6) in subsection (c)(2), as so redesignated--

(A) by amending subparagraph (A) to read as follows:

``(A) develop, update, and implement a life cycle sustainment plan described in subsection (b);'';

(B) in subparagraph (B), by striking ``use'' and inserting ``ensure the life cycle sustainment plan is informed by''; and

(C) in subparagraph (C), by inserting ``and life cycle sustainment plan'' after ``product support strategy'';''; and

(7) in subsection (d), as so redesignated--

(A) by amending paragraph (5) to read as follows:

``(5) Covered system.--The term `covered system'
means--

``(A) a major defense acquisition program as defined in section 2430 of this title; or

``(B) an acquisition program or project that is carried out using the rapid fielding or rapid prototyping acquisition pathway under section 804 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note) that is estimated by the Secretary of Defense to require an eventual total expenditure described in section 2430(a)(1)(B).''; and

(B) by adding at the end the following new
paragraphs:

``(6) Milestone b approval.--The term `Milestone B approval' has the meaning given that term in section 2366(e)(7) of this title.

``(7) Milestone decision authority.--The term `milestone decision authority' has the meaning given in section 2431a(e)(5) of this title.''.

(b) Additional Requirements Before Milestone B Approval.--Section 2366b of title 10, United States Code is amended--

(1) in subsection (a)(3)--

(A) in subparagraph (N), by striking

``and'' at the end;

(B) in subparagraph (O), by striking the period at the end and inserting ``; and''; and

(C) by adding at the end the following new subparagraph:

``(P) has approved the life cycle sustainment plan required under section 2337(b) of this title.''; and

(2) in subsection (c)(1)--

(A) by redesignating subparagraph (H) as subparagraph (I); and

(B) by inserting after subparagraph (G) the following new subparagraph:

``(H) A summary of the life cycle sustainment plan required under section 2337 of this title.''.

(c) Recurring Sustainment Reviews.--Section 2441 of title 10, United States Code, is amended--

(1) in subsection (a)--

(A) in the first sentence--

(i) by striking ``major weapon system'' and inserting ``covered system'';

(ii) by striking ``and throughout the life cycle of the weapon system'' and inserting ``, and every five years thereafter throughout the life cycle of the covered system,''; and

(iii) by striking ``costs of the weapon system'' and inserting ``costs of the covered system''; and

(B) by striking the second sentence;

(2) in subsection (b)--

(A) in the matter preceding paragraph (1), by inserting ``assess execution of the life cycle sustainment plan of the covered system and'' before ``include the following elements:''; and

(B) by adding at the end the following new paragraph:

``(10) As applicable, information regarding any decision to restructure the life cycle sustainment plan for a covered system or any other action that will lead to critical operating and support cost growth.''; and

(3) by adding at the end the following new subsections:

``(d) Submission to Congress.--(1) Not later than September
30 of each fiscal year, the Secretary of each military
department shall annually submit to the congressional defense
committees the sustainment reviews required by this section for
such fiscal year.

``(2) Each submission under paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.

``(3) For a covered system with critical operating and support cost growth, such submission shall include a remediation plan to reduce operating and support costs or a certification by the Secretary concerned that such critical operating and support cost growth is necessary to meet national security requirements.

``(e) Definitions.--In this section:

``(1) Covered system.--The term `covered system' shall have the meaning given in section 2337 of this title.

``(2) Critical operating and support cost growth.--
The term `critical operating and support cost growth' means operating and support cost growth--

``(A) of at least 25 percent more than the estimate documented in the most recent independent cost estimate for the covered system; or

``(B) of at least 50 percent more than the estimate documented in the original Baseline Estimate (as defined in section 2435(d) of this title) for the covered system.''.

(d) Comptroller General Review.--

(1) In general.--The Comptroller General of the United States shall--

(A) annually, select 10 covered systems for which a sustainment review has been submitted under section 2441(d) of title 10, United States Code; and

(B) submit to the congressional defense committees an assessment of the steps taken by Secretaries concerned to quantify and address critical operating and support cost growth with respect to such covered systems.

(2) Contents.--Each assessment described in paragraph (1) shall include--

(A) an evaluation of--

(i) the causes of critical operating and support cost growth for each such covered system;

(ii) the extent to which the Secretary concerned has mitigated critical operating and support cost growth of such covered system; and

(iii) any other issues related to potential critical operating and support cost growth the Comptroller General determines appropriate; and

(B) any recommendations, including steps the Secretaries concerned could take to reduce critical operating and support cost growth for covered systems and lessons learned to be incorporated in covered system acquisitions.

(3) Termination.--The requirement under this subsection shall terminate on September 30, 2025.

(4) Definitions.--In this subsection, the terms ``covered system'' and ``critical operating and support cost growth'' have the meanings given, respectively, in section 2441 of title 10, United States Code.

(e) Report on Sustainment Planning Processes for Non-major Defense Acquisition Program Activities.--Not later than December 31, 2021, the Secretary of Defense shall submit to the
congressional defense committees a report on the process for ensuring that timely and robust sustainment planning processes are in place for all acquisition activities. The report shall include a discussion of--

(1) sustainment planning processes for each--

(A) acquisition program or project that is carried out using the rapid fielding or rapid prototyping acquisition pathway under section 804 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 10 U.S.C. 2302 note);

(B) information technology and software program;

(C) services contract, including each services contract for information technologies and systems; and

(D) acquisition activity other than major defense acquisition programs (as defined in section 2430 of title 10, United States Code), as determined by the Secretary of Defense;

(2) methods to identify responsible individuals for sustainment planning;

(3) required elements of sustainment planning;

(4) timing of sustainment planning activities in the acquisition process;

(5) measures and metrics to assess compliance with sustainment plans; and

(6) actions to continuously monitor, create incentives for, and ensure compliance with sustainment plans.

The House bill contained a provision (sec. 803) that would specify the required elements of life cycle sustainment plans; require the Secretary of Defense to review each major weapon system's life cycle sustainment plan prior to Milestone C approval and periodically thereafter; and direct the Secretary of Defense to notify the congressional defense committees of a significant or critical breach of a major weapon system's baseline sustainment cost estimate, among other things.

The Senate amendment contained a similar provision (sec. 862) that would amend section 2441 of title 10, United States Code, by directing the Secretary of each military department to conduct sustainment reviews on an annual basis and to report certain information resulting from such reviews to the Congress and the public, including information about sustainment cost growth on the Department's most expensive weapon systems. The provision would also require the Comptroller General of the United States to assess the steps the military departments are taking to quantify and address sustainment cost growth.

The Senate recedes with an amendment that would modify sections 2337, 2366b, and 2441 of title 10, United States Code, to improve the Department of Defense's planning, execution, and oversight of life cycle sustainment activities for covered systems. The amendment would define the required elements of a life cycle sustainment plan; assign product support managers responsibility for developing, updating, and executing life cycle sustainment plans; require milestone decision authorities to approve life cycle sustainment plans before Milestone B; modify reporting requirements for sustainment planning in Milestone B certifications; and direct the Secretary of each military department to conduct sustainment reviews every 5 years and submit such reviews to the congressional defense committees, along with a remediation plan to reduce sustainment cost growth, as appropriate. The amendment would also direct the Secretary of Defense to report to the congressional defense committees on the Department's sustainment planning processes for non-major defense acquisition programs.

The conferees remain concerned about the Department of Defense's lack of sustainment planning during the acquisition process and its ongoing challenges managing sustainment cost growth on fielded systems. The conferees note that while the amended provision is focused on improving sustainment for major defense acquisition programs and certain middle tier acquisitions, other types of acquisition programs, such as large information technology services contracts and software acquisitions, also face sustainment challenges. The conferees intend to monitor the Department's progress in improving sustainment outcomes, including the extent to which sustainment planning is carried out under each of the pathways in the Department's new Adaptive Acquisition Framework.

House Committee Report 116-442 Accompanying H. R. 6395

Section 803--Major Weapon Systems: Life-Cycle Sustainment Plan

This section would require the submission of a life-cycle sustainment plan for a major weapon system prior to granting Milestone C approval. The plan, which shall be reviewed 5 years after the receipt of Milestone C approval and every 10 years thereafter, shall include metrics to measure the readiness and availability of the major weapon system, a schedule for maintenance and overhaul activities, and a baseline cost estimate for the life-cycle sustainment of a major weapon system. In the case of a significant and critical breach of a baseline cost estimate, this section would require the Secretary of Defense to notify the congressional defense committees of such breach and certify a remediation plan or endorsement that the cost growth is justified.

Senate Committee Report 116-236 to Accompanying S. 4049

Sustainment reviews (sec. 862)

The committee recommends a provision that would require the military services to submit certain information, already required in section 2441 of title 10, United States Code, to the Congress regarding operating and support costs of the largest and most expensive acquisition programs. The information would also be required to be available on a public website maintained by the Director of the Cost Assessment and Program Evaluation. Additionally, the section would require the Comptroller General of the United States to assess the steps the military departments are taking to quantify and address operating and support cost growth.