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SEC. 823. PILOT PROGRAM ON SYSTEMS
ENGINEERING DETERMINATIONS.
(a) Requirement.--As soon as practicable but not later than
September 30, 2023, the Secretary of Defense shall ensure that
each covered entity enters into at least two covered
transactions under an authority described in subsection (b),
where each such covered transaction includes the system
engineering determinations described under subsection (c).
(b) Covered Authorities.--The
authorities described under this subsection are as follows:
(1) Section 2371 of title 10, United
States Code, with respect to applied and advanced research
project transactions relating to weapons systems.
(2) Section 2371b of such title, with
respect to transactions relating to weapons systems.
(3) Section 2373 of such title.
(4) Section 2358 of such title, with
respect to transactions relating to weapons systems.
(c) Systems Engineering
Determinations.--
(1) First determination.--
(A) Success criteria.--The head of a
covered entity that enters into a covered transaction under
this section shall identify, in writing, not later than 30
days after entering into such covered transaction,
measurable success criteria related to potential military
applications of such covered transaction, to be demonstrated
not later than the last day of the period of performance for
such covered transaction.
(B) Types of determinations.--Not
later than 30 days after the end of such period of
performance, the head of the covered entity shall make one
of the following determinations:
(i) A ``Discontinue''
determination, under which such head discontinues support
of the covered transaction and provides a rationale for
such determination.
(ii) A ``Retain and Extend''
determination, under which such head ensures continued
performance of such covered transaction and extends the
period of performance for a specified period of time in
order to achieve the success criteria described under
subparagraph (A).
(iii) An ``Endorse and Refer''
determination, under which such head endorses the covered
transaction and refers it to the most appropriate Service
Systems Engineering Command, based on the technical
attributes of the covered transaction and the associated
potential military applications, based on meeting or
exceeding the success criteria.
(C) Written notice.--A determination
made pursuant to subparagraph (B) shall be documented in
writing and provided to the person performing the covered
transaction to which the determination relates.
(D) Further determination.--If the
head of a covered entity issued a ``Retain and Extend''
determination described in subparagraph (B)(ii), such head
shall, at the end of the extension period--
(i) issue an ``Endorse and Refer''
determination described in subparagraph (B)(iii) if the
success criteria are met; or
(ii) issue a ``Discontinue''
determination described in subparagraph (B)(i) if the
success criteria are not met.
(2) Second determination.--
(A) Systems engineering plan.--The
head of the Service Systems Engineering Command that
receives a referral from an ``Endorse and Refer''
determination described in paragraph (1)(B)(iii) shall, not
later than 30 days after receipt of such referral, formulate
a systems engineering plan with the person performing the
referred covered transaction, technical experts of the
Department of Defense, and any prospective program executive
officers.
(B) Elements.--The systems
engineering plan required under subparagraph (A) shall
include the following:
(i) Measurable baseline technical
capability, based on meeting the success criteria
described in paragraph (1)(A).
(ii) Measurable transition
technical capability, based on the technical needs of the
prospective program executive officers to support a
current or future program of record.
(iii) Discrete technical
development activities necessary to progress from the
baseline technical capability to the transition technical
capability, including an approximate cost and schedule,
including activities that provide resolution to issues
relating to--
(I) interfaces;
(II) data rights;
(III) Federal Government
technical requirements;
(IV) specific platform technical
integration;
(V) software development;
(VI) component, subsystem, or
system prototyping;
(VII) scale models;
(VIII) technical manuals;
(IX) lifecycle sustainment
needs; and
(X) other needs identified by
the relevant program executive officer.
(iv) Identification and commitment
of funding sources
to complete the activities under clause (iii).
(C) Types of determinations.--Not
later than 30 days after the end of the schedule required by
subparagraph (B)(iii), the head of the Service Systems
Engineering Command shall make one of the following
determinations:
(i) A ``Discontinue''
determination, under which such head discontinues support
of the covered transaction and provides a rationale for
such determination.
(ii) A ``Retain and Extend''
determination, under which such head ensures continued
performance of such covered transaction within the Service
Systems Engineering Command and extends the period of
performance for a specified period of time in order to--
(I) successfully complete the
systems engineering plan required under subparagraph
(A); and
(II) issue specific remedial or
additional activities to the person performing the
covered transaction.
(iii) An ``Endorse and Refer''
determination, under which such head endorses the covered
transaction and refers it to a program executive officer,
based on successful completion of the systems engineering
plan required under subparagraph (A).
(D) Written notice.--A determination
made pursuant to subparagraph (C) shall be documented in
writing and provided to the person performing the covered
transaction to which the determination relates and any
prospective program executive officers for such covered
transaction.
(E) Further determination.--If the
head of the Service Systems Engineering Command issued a
``Retain and Extend'' determination described in
subparagraph (C)(ii), such head shall, at the end of the
extension period--
(i) issue an ``Endorse and Refer''
determination described in subparagraph (C)(iii) if the
transition technical capability criteria are met; or
(ii) issue a ``Discontinue''
determination described in subparagraph (B)(i) if the
success criteria are not met.
(d) Priority for Covered Transaction
Selection.--In selecting a covered transaction under this
section, the Secretary shall prioritize those covered
transactions that--
(1) are being initially demonstrated
at a covered entity;
(2) demonstrate a high potential to be
further developed by a Service Systems Engineering Command;
and
(3) demonstrate a high potential to be
used in a program of the Department of Defense.
(e) Notifications.--
(1) In general.--Not later than 30
days after a covered transaction is entered into pursuant to
subsection (a), the Secretary of Defense shall notify the
congressional defense committees of such covered transaction.
(2) Updates.--Not later than 120 days
after such a covered transaction is entered into, and every
120 days thereafter until the action specified in subsection
(c)(1)(B)(i), (c)(2)(C)(i), or (c)(2)(C)(iii) occurs, the
Secretary of Defense shall provide written updates to the
congressional defense committees on the actions being taken by
the Department to comply with the requirements of this
section.
(f) Briefing Required.--Not later than
60 days after the date of the enactment of this Act, the
Secretary of Defense shall provide a briefing to the Committees
on Armed Services of the Senate and the House of Representatives
with a detailed plan to implement the requirements of this
section.
(g) Definitions.--In this section:
(1) The term ``covered entity''
means--
(A) the Defense Innovation Unit;
(B) the Strategic Capabilities
Office; or
(C) the Defense Advanced Research
Projects Agency.
(2) The term ``covered transaction''
means a transaction, procurement, or project conducted
pursuant to an authority listed in subsection (b).
(3) The term ``Service Systems
Engineering Command'' means the specific Department of Defense
command that reports through a chain of command to the head of
a military department that specializes in the systems
engineering of a system, subsystem, component, or capability
area.
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Pilot program on systems engineering
determinations (sec. 823) The
Senate amendment contained a provision (sec. 806) that would
require systems engineering determinations for transactions
entered into under certain legal authorities.
The House bill contained no similar
provision.
The agreement includes the Senate
provision with an amendment that would establish a pilot program
requiring engineering determinations for certain projects
entered into
under certain legal authorities by selected Defense Agencies,
and require congressional notification of activities under the
pilot.
We direct each component acquisition
executive to submit to the congressional defense committees a
report, not later than September 1, 2022, that provides: (1) A
description of current policies and practices relating to
technology transition; (2) The extent to which systems
engineering commands are used to assist with technology
transition; (3) Examples of recent transition successes and
failures (including in classified programs); and (4)
Recommendations for improvements to current technology
transition efforts, including recommendations on new policies
and legal authorities.
We also direct each component
acquisition executive to submit to the congressional defense
committees a report, not later than December 1, 2022, that
provides: (1) Views on the systems engineering determinations
process established by this section; (2) Involvement with
such process to date; (3) Recommendations for improving such
process; and (4) Identification of which entities in the
component should serve as service systems engineering commands
and for which key systems, subsystems, components, and
capability areas.
S. 2792--Senate Report117-39
Systems engineering
determinations (sec. 806)
The committee recommends a
provision that would require systems engineering determinations
for transactions entered into under certain legal authorities.
The committee notes that
companies that develop emerging technologies, are
non-traditional, and/or are small businesses have increasing
opportunities to conduct initial demonstrations and other
activities with the Department of Defense but are challenged in
transitioning these products into programs-of-record.
The committee believes the
role of systems engineering commands (SECs) (e.g., Naval Warfare
Centers; Army Combat Capabilities Development Command Centers;
Air Force Research Laboratory) should include the activities
necessary to transition promising technologies from a successful
initial demonstration to a program-of-record within the SEC's
area of expertise, including working with the product company
and the desired program executive officer (PEO) to develop and
execute a systems engineering plan (SEP) necessary to achieve
transition to the PEO.
The committee envisions the
scope of each SEP being tailored to the needs of each covered
product, which may include resolution of: interfaces, data
rights, technical warrant holder requirements, specific platform
technical integration, software development, subsystem
prototyping, reliability improvements, scale models, technical
manuals, life cycle sustainment needs, and PEO-identified needs.
The committee believes the
benefits to the Government of this provision should include SEC
technical experts and test equipment better able to: (1) Keep
pace with emerging
technology; (2) Support covered products in-service; (3) Make
more informed recommendations to PEOs and other DOD leaders; and
(4) Provide greater clarity and accountability on the steps
necessary to transition covered products to programs-of-record.
The committee also believes
the benefits to companies of this provision should include
greater clarity on the steps necessary to transition a covered
product to a program-of-
record, the Government's technical partners at the SEC and the
associated SEP, and identification of the associated funding. |
