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

Subtitle B--Provisions Relating to Major Defense Acquisition Programs

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 814. INCLUSION OF MAJOR SUBPROGRAMS TO MAJOR DEFENSE ACQUISITION PROGRAMS UNDER VARIOUS ACQUISITION-RELATED REQUIREMENTS.

(a) Reporting Requirements- Section 2430a(b) of title 10, United States Code, is amended--

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(2) by inserting `(1)' before `If the Secretary';

(3) in subparagraph (A), as so redesignated, by inserting `(other than as provided in paragraph (2))' before the semicolon; and

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

`(2) For a major defense acquisition program for which a designation of a major subprogram has been made under subsection (a), unit costs under this chapter shall be submitted in accordance with the definitions in subsection (d).'.

(b) Milestone A Approval Certification Requirements- Section 2366a of such title is amended--

(1) in subsection (b)--

(A) in paragraph (1), by striking `a major defense acquisition program certified by the Milestone Decision Authority under subsection (a), if the projected cost of the program' and inserting `a major defense acquisition program certified by the Milestone Decision Authority under subsection (a) or a designated major subprogram of such program, if the projected cost of the program or subprogram'; and

(B) in paragraph (2), by inserting `or designated major subprogram' after `major defense acquisition program'; and

(2) in subsection (c)--

(A) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `designated major subprogram' means a major subprogram of a major defense acquisition program designated under section 2430a(a)(1) of this title.'.

(c) Milestone B Approval Certification Requirements- Section 2366b of such title is amended--

(1) in subsection (b)(1)--

(A) by striking `any changes to the program' and inserting `any changes to the program or a designated major subprogram of such program'; and

(B) in subparagraph (B), by striking `otherwise cause the program' and inserting `otherwise cause the program or subprogram'; and

(2) in subsection (g)--

(A) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `designated major subprogram' means a major subprogram of a major defense acquisition program designated under section 2430a(a)(1) of this title.'.

(d) Conforming Amendments to Section 2399- Subsection (a) of section 2399 of such title is amended to read as follows:

`(a) Condition for Proceeding Beyond Low-rate Initial Production- (1) The Secretary of Defense shall provide that a covered major defense acquisition program or a covered designated major subprogram may not proceed beyond low-rate initial production until initial operational test and evaluation of the program or subprogram is completed.

`(2) In this subsection:

`(A) The term `covered major defense acquisition program' means a major defense acquisition program that involves the acquisition of a weapon system that is a major system within the meaning of that term in section 2302(5) of this title.

`(B) The term `covered designated major subprogram' means a major subprogram designated under section 2430a(a)(1) of this title that is a major subprogram of a covered major defense acquisition program.'.

(e) Conforming Amendments to Section 2434- Section 2434(a) of such title is amended--

(1) by inserting `(1)' before `The Secretary of Defense'; and

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

`(2) The provisions of this section shall apply to any major subprogram of a major defense acquisition program (as designated under section 2430a(a)(1) of this title) in the same manner as those provisions apply to a major defense acquisition program, and any reference in this section to a program shall be treated as including such a subprogram.'.

From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 803. CONFORMING AMENDMENTS RELATING TO INCLUSION OF MAJOR SUBPROGRAMS TO MAJOR DEFENSE ACQUISITION PROGRAMS UNDER VARIOUS ACQUISITION-RELATED REQUIREMENTS.

(a) Conforming Amendments to Section 2366a- Section 2366a of such title is amended--

(1) in subsections (a), (b)(1), and (b)(2)--

(A) by inserting `or designated major subprogram' after `major defense acquisition program'; and

(B) by inserting `or subprogram' after `program' each place it appears (other than after `major defense acquisition program', after `space program', before `requirements', and before `manager'); and

(2) in subsection (c)--

(A) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `designated major subprogram' means a major subprogram of a major defense acquisition program as designated under section 2430a(a)(1) of this title.'.

(b) Conforming Amendments to Section 2366b- Section 2366b of such title is amended--

(1) in subsections (a), (b)(1), and (c)(1)--

(A) by inserting `or designated major subprogram' after `major defense acquisition program'; and

(B) by inserting `or subprogram' after `program' each place it appears (other than after `major defense acquisition program', after `future-years defense program', and after `space program'); and

(2) in subsection (g)--

(A) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `designated major subprogram' means a major subprogram of a major defense acquisition program as designated under section 2430a(a)(1) of this title.'.

(c) Conforming Amendments to Section 2399- Subsection (a) of section 2399 of such title is amended to read as follows:

`(a) Condition for Proceeding Beyond Low-rate Initial Production- (1) The Secretary of Defense shall provide that a covered major defense acquisition program or a covered designated major subprogram may not proceed beyond low-rate initial production until initial operational test and evaluation of the program or subprogram is completed.

`(2) In this subsection:

`(A) The term `covered major defense acquisition program' means a major defense acquisition program that involves the acquisition of a weapon system that is a major system within the meaning of that term in section 2302(5) of this title.

`(B) The term `covered designated major subprogram' means a major subprogram designated under section 2430a(a)(1) of this title that is a major subprogram of a covered major defense acquisition program.'.

(d) Conforming Amendments to Section 2434- Section 2434(a) of such title is amended--

(1) by inserting `(1)' before `The Secretary of Defense'; and

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

`(2) The provisions of this section shall apply to any major subprogram of a major defense acquisition program (as designated under section 2430a(a)(1) of this title) in the same manner as those provisions apply to a major defense acquisition program, and any reference in this section to a program shall be treated as including such a subprogram.'.

From S. 3454, National Defense Authorization Act for Fiscal Year 2011

SEC. 805. INCLUSION OF MAJOR SUBPROGRAMS TO MAJOR DEFENSE ACQUISITION PROGRAMS UNDER VARIOUS ACQUISITION-RELATED REQUIREMENTS.

(a) Reporting Requirements- Section 2430a(b) of title 10, United States Code, is amended--

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(2) by inserting `(1)' before `If the Secretary';

(3) in subparagraph (A), as so redesignated, by inserting `(other than as provided in paragraph (2))' before the semicolon; and

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

`(2) For a major defense acquisition program for which a designation of a major subprogram has been made under subsection (a), unit costs under this chapter shall be submitted in accordance with the definitions in subsection (d).'.

(b) Milestone A Approval Certification Requirements- Section 2366a of such title is amended--

(1) in subsection (b)--

(A) in paragraph (1), by striking `a major defense acquisition program certified by the Milestone Decision Authority under subsection (a), if the cost of the program' and inserting `a major defense acquisition program certified by the Milestone Decision Authority under subsection (a) or a designated major subprogram of such program, if the cost of the program or subprogram'; and

(B) in paragraph (2), by inserting `or designated major subprogram' after `major defense acquisition program'; and

(2) in subsection (c)--

(A) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `designated major subprogram' means a major subprogram of a major defense acquisition program designated under section 2430a(a)(1) of this title.'.

(c) Milestone B Approval Certification Requirements- Section 2366b of such title is amended--

(1) in subsection (b)(1)--

(A) by striking `any changes to the program' and inserting `any changes to the program or a designated major subprogram of such program'; and

(B) in subparagraph (B), by striking `otherwise cause the program' and inserting `otherwise cause the program or subprogram'; and

(2) in subsection (g)--

(A) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively; and

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `designated major subprogram' means a major subprogram of a major defense acquisition program designated under section 2430a(a)(1) of this title.'.

The House bill contained a provision (sec. 803) that would clarify the applicability of a number of acquisition statutes to major subprograms to major defense acquisition programs.

The Senate committee-reported bill contained a similar provision (sec. 805).

The agreement includes a provision combining elements of the House and Senate provisions.

From H. Rpt. 111-491, accompanying H. R. 5136, the NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2011

SECTION 803--CONFORMING AMENDMENTS RELATING TO INCLUSION OF MAJOR SUBPROGRAMS TO MAJOR DEFENSE ACQUISITION PROGRAMS UNDER VARIOUS ACQUISITION-RELATED REQUIREMENTS

This section would amend several sections of title 10, United States Code, to clarify the application of various acquisition-related requirements to major subprograms of major defense acquisition programs. Major subprograms are designated pursuant to section 2340a of title 10, United States Code. This section would cover major subprograms under the certification requirements for milestone A of section 2366a and the certification requirements for milestone B of 2366b of title 10, United States Code. This section would also cover major subprograms under the operational test and evaluation requirements of section 2399 and the independent life-cycle cost estimate and manpower estimate requirements of section 2434 of title 10, United States Code.

From S. Rpt. 111-201, to accompany S. 3454, NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2011

Inclusion of major subprograms to major defense acquisition programs under various acquisition-related requirements (sec. 805)

The committee recommends a provision that would reaffirm that where the Department of Defense designates major subprograms in accordance with section 2430a of title 10, United States Code, unit costs are required to be reported only at the major subprogram level. The provision would also clarify that significant cost or schedule increases and other changes to designated major subprograms that alter the substantive basis for a milestone decision should be reported to the appropriate milestone decision authority and the congressional defense committees in accordance with the requirements of sections 2366a and 2366b of title 10, United States Code.