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

Subtitle A--Acquisition Policy and Management

P. L. 112-81

House Conference Report 112-329

(a) Additional Milestone a Requirements-

(1) ADDITIONAL ITEMS OF CERTIFICATION- Subsection (a) of section 2366a of title 10, United States Code, is amended--

(A) in paragraph (2), by striking `core competency' and inserting `function';

(B) by redesignating paragraphs (4) and (5) as paragraphs (6) and (7), respectively;

(C) by inserting after paragraph (3) the following new paragraph (4):

`(4) that a determination of applicability of core depot-level maintenance and repair capabilities requirements has been made;'; and

(D) in paragraph (6) (as so redesignated), by striking `develop and procure' and inserting `develop, procure, and sustain'.

(2) DEFINITION- Subsection (c) of such section is amended by adding at the end the following new paragraph:

`(7) The term `core depot-level maintenance and repair capabilities' means the core depot-level maintenance and repair capabilities identified under section 2464(a) of this title.'.

(b) Additional Milestone B Requirements-

(1) ADDITIONAL ITEM OF CERTIFICATION- Subsection (a)(3) of section 2366b of title 10, United States Code, is amended--

(A) by redesignating subparagraph (E) as subparagraph (G);

(B) by striking `and' at the end of subparagraph (D); and

(C) by inserting after subparagraph (D) the following new subparagraphs:

`(E) life-cycle sustainment planning, including corrosion prevention and mitigation planning, has identified and evaluated relevant sustainment costs throughout development, production, operation, sustainment, and disposal of the program, and any alternatives, and that such costs are reasonable and have been accurately estimated;

`(F) an estimate has been made of the requirements for core depot-level maintenance and repair capabilities, as well as the associated logistics capabilities and the associated sustaining workloads required to support such requirements; and'.

(2) DEFINITION- Subsection (g) of such section is amended by striking paragraph (5) (relating to Key Decision Point B) and inserting the following new paragraph (5):

`(5) The term `core logistics capabilities' means the core logistics capabilities identified under section 2464(a) of this title.'.

(c) Requirements Prior to Low-Rate Initial Production- Prior to entering into a contract for low-rate initial production of a major defense acquisition program, the Secretary of Defense shall ensure that the detailed requirements for core depot-level maintenance and repair capabilities, as well as the associated logistics capabilities and the associated sustaining workloads required to support such requirements, have been defined.

(d) Guidance- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance implementing the amendments made by subsections (a) and (b), and subsection (c), in a manner that is consistent across the Department of Defense.

(e) Elimination of References to Key Decision Points A and B-

(1) AMENDMENTS TO SECTION 2366a- Section 2366a of title 10, United States Code, is amended--

(A) in the section heading, by striking `or Key Decision Point';

(B) in subsection (a), in the matter preceding paragraph (1), by striking `, or Key Decision Point A approval in the case of a space program,' and by striking `, or Key Decision Point B approval in the case of a space program,'; and

(C) in subsection (b)--

(i) in paragraph (1), by striking `(or Key Decision Point A approval in the case of a space program)'; and

(ii) in paragraph (2)(C)(ii), by striking `, or Key Decision Point A approval in the case of a space program,'.

(2) AMENDMENTS TO SECTION 2366b- Section 2366b of such title is amended--

(A) in the section heading, by striking `or Key Decision Point B';

(B) in subsection (a), in the matter preceding paragraph (1), by striking `, or Key Decision Point B approval in the case of a space program,'; and

(C) in subsections (b)(2) and (d)(1), by striking `(or Key Decision Point B approval in the case of a space program)' each place it appears.

(3) AMENDMENTS TO TABLE OF SECTIONS- The items relating to sections 2366a and 2366b in the table of sections at the beginning of chapter 139 of such title are amended to read as follows:

`2366a. Major defense acquisition programs: certification required before Milestone A approval.

`2366b. Major defense acquisition programs: certification required before Milestone B approval.'.

(4) ADDITIONAL CONFORMING AMENDMENTS- Section 2433a(c)(1) of such title is amended by striking `, or Key Decision Point approval in the case of a space program,' each place it appears in subparagraphs (B) and (C).

The House bill contained a provision (sec. 801) that would amend sections 2366a and 2366b of title 10, United State Code, to incorporate certification requirements for core logistics capabilities and to eliminate obsolete references to Key Decision Points A and B for Space Programs.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would ensure that life cycle sustainment planning, to include core depot-level maintenance and repair capabilities, is considered at applicable milestones for major defense acquisition programs.

House Report 112-078

SECTION 801--REQUIREMENTS RELATING TO CORE LOGISTICS CAPABILITIES FOR MILESTONE A AND MILESTONE B AND ELIMINATION OF REFERENCES TO KEY DECISION POINTS A AND B

This section would amend section 2366a and 2366b of title 10, United States Code, to require the Milestone Decision Authority to certify that a preliminary analysis of core logistics capabilities for each major weapons system has been performed as entrance criteria for entering the technology development phase of a major defense acquisition program (milestone A) and that the core logistics requirements and associated sustaining workloads for the weapons system have been determined as entrance criteria for entering the engineering and manufacturing development phase (milestone B). This section also would require certification that relevant sustainment criteria and alternatives were sufficiently evaluated and addressed in the initial capabilities document to support an analysis of alternatives and the development of key performance parameters for sustainment of the program throughout its projected life cycle. Furthermore, this section would require certification that life-cycle sustainment planning has identified and evaluated relevant sustainment costs through development, production, operation, sustainment, and disposal of the program, and any alternatives, and that such costs are reasonable and have been accurately estimated.

The committee is aware that the Secretary issued formal guidance on the operation of the defense acquisition system on October 18, 2010, which directed space systems to be subject to milestone A and milestone B requirements. Therefore, this section also would strike references to `key decisions points' in section 2366a and 2366b of title 10, United States Code.