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Conference Report 107-772 - National Defense Authorization Act for Fiscal Year 2003

Conference Report Section

Legislative History

(a) REPORT REQUIRED- 

(1) Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the approach that the Secretary plans to take to apply the requirements listed in paragraph (2) to major defense acquisition programs that follow the evolutionary acquisition process.

(2) The requirements referred to in paragraph (1) are--

(A) the requirements of chapter 144 of title 10, United States Code;

(B) sections 139, 181, 2366, 2399, and 2400 of such title;

(C) Department of Defense Directive 5000.1;

(D) Department of Defense Instruction 5000.2;

(E) Chairman of the Joint Chiefs of Staff Instruction 3170.01B; and

(F) other provisions of law and regulations (including successor documents) that are applicable to such programs.

(b) CONTENT OF REPORT- The report shall, at a minimum, address the following matters:

(1) The manner in which the Secretary plans to establish and approve, for each increment of an evolutionary acquisition process--

(A) operational requirements; and

(B) cost and schedule goals.

(2) The manner in which the Secretary plans, for each increment of an evolutionary acquisition process--

(A) to meet requirements for operational testing and live fire testing;

(B) to monitor cost and schedule performance; and

(C) to comply with laws requiring reports to Congress on results testing and on cost and schedule performance.

(3) The manner in which the Secretary plans to ensure that each increment of an evolutionary acquisition process is designed--

(A) to achieve interoperability within and among United States forces and United States coalition partners; and

(B) to optimize total system performance and minimize total ownership costs by giving appropriate consideration to--

(i) logistics planning;

(ii) manpower, personnel, and training;

(iii) human, environmental, safety, occupational health, accessibility, survivability, operational continuity, and security factors;

(iv) protection of critical program information; and

(v) spectrum management.

(c) DEFINITIONS- In this section:

(1) The term 'evolutionary acquisition process' means a process by which an acquisition program is conducted through discrete phases or blocks, with each phase or block consisting of the planned definition, development, production or acquisition, and fielding of hardware or software that provides operationally useful capability.

(2) The term 'increment', with respect to an evolutionary acquisition program, means one of the discrete phases or blocks of such program.

(3) The term 'major defense acquisition program' has the meaning given such term in section 139(a)(2)(B) of title 10, United States Code.

Conference Report 107-772

The Senate amendment contained a provision (sec. 802) that would require the Secretary of Defense to submit to the congressional defense committees a report on how the Department of Defense plans to comply with applicable requirements of title 10, United States Code, and Department of Defense regulations when it conducts programs for the incremental acquisition of major systems. (See Senate Amendment and Senate Report 107-151 below) 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the submission of a report on the application of such requirements to the evolutionary acquisition of major defense acquisition programs and make certain technical changes.

Senate Amendment

SEC. 802. REPORT TO CONGRESS ON INCREMENTAL ACQUISITION OF MAJOR SYSTEMS.

(a) REPORT REQUIRED- Not later than 120 days after the date of the enactment of this Act, the Secretary

of Defense shall submit to the congressional defense committees a report on the approach that the Secretary plans to take to applying the requirements of chapter 144 of title 10, United States Code, sections 139, 181, 2366, 2399, and 2400 of such title, Department of Defense Directive 5000.1, Department of Defense Instruction 5000.2, and Chairman of the Joint Chiefs of Staff Instruction 3170.01B, and other provisions of law and regulations applicable to incremental acquisition programs.

(b) CONTENT OF REPORT- The report shall, at a minimum, address the following matters:

(1) The manner in which the Secretary plans to establish and approve, for each increment of an incremental acquisition program--

(A) operational requirements; and

(B) cost and schedule goals.

(2) The manner in which the Secretary plans, for each increment of an incremental acquisition program--

(A) to meet requirements for operational testing and live fire testing;

(B) to monitor cost and schedule performance; and

(C) to comply with laws requiring reports to Congress on results testing and on cost and schedule performance.

(3) The manner in which the Secretary plans to ensure that each increment of an incremental acquisition program is designed--

(A) to achieve interoperability within and among United States forces and United States coalition partners; and

(B) to optimize total system performance and minimize total ownership costs by giving appropriate consideration to--

(i) logistics planning;

(ii) manpower, personnel, and training;

(iii) human, environmental, safety, occupational health, accessibility, survivability, operational continuity, and security factors;

(iv) protection of critical program information; and

(v) spectrum management.

(c) DEFINITIONS- In this section:

(1) The term `incremental acquisition program' means an acquisition program that is to be conducted in discrete phases or blocks, with each phase or block consisting of the planned production and acquisition of one or more units of a major system.

(2) The term `increment' refers to one of the discrete phases or blocks of an incremental acquisition program.

(3) The term `major system' has the meaning given such term in section 2302(5) of title 10, United States Code.

Senate Report 107-151

Report to Congress on incremental acquisition of major systems (sec. 802)

The committee recommends a provision that would require the Secretary of Defense to submit to the congressional defense committees a report on how the Department of Defense plans to comply with applicable requirements of title 10, United States Code and Department of Defense regulations when it conducts programs for the incremental acquisition of major systems.

In testimony before the Readiness Subcommittee, Department of Defense witnesses stated that the Department is seeking to reduce weapons systems acquisition cycle time by using incremental acquisition and spiral development strategies.

The Assistant Secretary of the Air Force (Acquisition) testified that:

All too often, our long cycle times and our program breakages have their roots in the way we conceive, plan and start our acquisitions. Our processes are too serial and allow each community involved to work too much in isolation. Too often, the warfighter decides a capability is needed and works for months or years to develop a 100 percent solution that is given to the acquisition community as a requirement. The acquirers then struggle to come up with an acquisition strategy that will meet the requirement within a limited budget. Because we are looking for a `big bang,' all-at-once delivery of capability, the development time line--which drives both schedule and cost--is long and fraught with possibilities for things to go wrong * * *.

There is a better way * * *. By delivering capability in increments, with a period for the warfighter to `use and learn' at each increment, we can incorporate what is learned in each new spiral. Because the spiral will be short, schedules and cost estimates will be more reliable and programs will be less subject to funding fluctuations. There will be many opportunities to rapidly inject new technology as a system develops as well as to look at requirements and re-prioritize as world events and threats change.

The Deputy Under Secretary of Defense for Acquisition, Technology and Logistics testified that:

`Spiral development allows us to get capability to our warfighters [faster] and at less cost * * * by producing and deploying systems based on mature technologies. When deployed, the first increment of capability (or block) will meet many, but not all, of the systems' desired operational requirements. Subsequent blocks will incorporate new technologies that have matured as each block of capability is fielded. The series of blocks represent the `spirals' of increasing capability to the warfighter.

The committee supports the Department's effort to build more flexibility into the acquisition process and develop weapons systems in more manageable steps. At the same time, the committee believes that the Department must take a more disciplined approach to incremental acquisition and spiral development to avoid losing control over the acquisition process.

In the committee's view, the terms `incremental acquisition' and `spiral development' are not interchangeable. Incremental acquisition is an acquisition strategy of gradually improving a capability through a planned series of block upgrades, each of which is to be acquired and fielded. Spiral development is a strategy for achieving a new capability through the phased development of fieldable prototypes. The committee understands that it may take several development `spirals' before a system is ready for production and acquisition.

Section 802 would address incremental acquisition programs. The committee expects the Department to develop a disciplined approach to ensure that both the specific requirements and the key objectives of applicable laws and regulations will be met by all incremental acquisition programs. A separate section (sec. 803) would address spiral development programs.