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

Subtitle C--Provisions Relating to Major Defense Acquisition Programs

P. L. 114-

House Conference Report. 114-270

(a) Revision to milestone a requirements.—Section 2366a of title 10, United States Code, is amended to read as follows:

Ҥ 2366a. Major defense acquisition programs: determination required before Milestone A approval

“(a) Responsibilities.—Before granting Milestone A approval for a major defense acquisition program or a major subprogram, the milestone decision authority for the program or subprogram shall ensure that—

“(1) information about the program or subprogram is sufficient to warrant entry of the program or subprogram into the risk reduction phase;

“(2) the Secretary of the military department concerned and the Chief of the armed force concerned concur in the cost, schedule, technical feasibility, and performance trade-offs that have been made with regard to the program; and

“(3) there are sound plans for progression of the program or subprogram to the development phase.

“(b) Written determination required.—A major defense acquisition program or subprogram may not receive Milestone A approval or otherwise be initiated prior to Milestone B approval until the milestone decision authority determines in writing, after consultation with the Joint Requirements Oversight Council on matters related to program requirements and military needs—

“(1) that the program fulfills an approved initial capabilities document;

“(2) that the program has been developed in light of appropriate market research;

“(3) if the program duplicates a capability already provided by an existing system, the duplication provided by such program is necessary and appropriate;

“(4) that, with respect to any identified areas of risk, there is a plan to reduce the risk;

“(5) that planning for sustainment has been addressed and that a determination of applicability of core logistics capabilities requirements has been made;

“(6) that an analysis of alternatives has been performed consistent with study guidance developed by the Director of Cost Assessment and Program Evaluation;

“(7) that a cost estimate for the program has been submitted, with the concurrence of the Director of Cost Assessment and Program Evaluation, and that the level of resources required to develop, procure, and sustain the program is sufficient for successful program execution; and

“(8) that the program or subprogram meets any other considerations the milestone decision authority considers relevant.

“(c) Submission to congress.—At the request of any of the congressional defense committees, the Secretary of Defense shall submit to the committee an explanation of the basis for a determination made under subsection (b) with respect to a major defense acquisition program, together with a copy of the written determination. The explanation shall be submitted in unclassified form, but may include a classified annex.

“(d) Definitions.—In this section:

“(1) The term ‘major defense acquisition program’ has the meaning provided in section 2430 of this title.

“(2) The term ‘initial capabilities document’ means any capabilities requirement document approved by the Joint Requirements Oversight Council that establishes the need for a materiel approach to resolve a capability gap.

“(3) The term ‘Milestone A approval’ means a decision to enter into technology maturation and risk reduction pursuant to guidance prescribed by the Secretary of Defense for the management of Department of Defense acquisition programs.

“(4) The term ‘Milestone B approval’ has the meaning provided that term in section 2366(e)(7) of this title.

“(5) The term ‘core logistics capabilities’ means the core logistics capabilities identified under section 2464(a) of this title.

“(6) the term ‘major subprogram’ means a major subprogram of a major defense acquisition program designated under section 2430a(a)(1) of this title.

“(7) The term ‘milestone decision authority’, with respect to a major defense acquisition program or a major subprogram, means the official within the Department of Defense designated with the overall responsibility and authority for acquisition decisions for the program or subprogram, including authority to approve entry of the program or subprogram into the next phase of the acquisition process.”.

(b) Clerical amendment.—The table of sections at the beginning of chapter 139 of such title is amended by striking the item relating to section 2366a and inserting the following:

“2366a. Major defense acquisition programs: determination required before Milestone A approval.”.

The Senate amendment contained a similar provision (sec. 844).

The Senate recedes with an amendment that combines these two provisions. The provision establishes the Milestone Decision Authority's responsibility to ensure that an acquisition program has demonstrated sufficient knowledge to enter into a risk reduction phase following Milestone A and has sound plans to progress to the development phase before granting milestone approval. It specifies the considerations the milestone decision authority must take into account, thereby addressing the critical activities that need to precede and occur during the succeeding risk reduction phase.

House Report 114-201 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 825--Required Determination before Milestone A Approval or Initiation of Major Defense Acquisition Programs

This section would amend section 2366a of title 10, United States Code, to require the Milestone Decision Authority to make a written determination, in lieu of a certification, before approving milestone A. This section would also require an explanation of the basis for the determination to be submitted to a congressional defense committee upon request. The committee remains concerned that the process used to manage the acquisition of weapon systems is inefficient, cumbersome, and bureaucratic, and that an over-focus on paperwork and legal reviews takes time away from conducting day-to-day core program management tasks such as contractor oversight, engineering, and risk management. While the substantive program management work necessary to support a determination remains consistent with that needed to support a certification, a determination requires less bureaucratic reviews of documentation than a certification. Because the Department would be required to make the basis for the determination available to the committee upon request, the committee would retain access to the information needed for oversight and accountability, while enabling a reduction in the time and effort the Department spends on processes that do not appear to provide much added value.

Senate Report 114-49 to accompany S. 1376 as it was reported out of the Senate Armed Services Committee.

Revision of Milestone A decision authority responsibilities for major defense acquisition programs (sec. 844)

The committee recommends a provision that would amend section 2366a of title 10, United States Code to require the Department official serving as the milestone decision authority in the defense acquisition process to ensure that specific actions are met before granting a Milestone A approval. This requirement would replace current certification requirements that have added unnecessary time and duplicative documentation. This provision would establish the milestone decision authority's responsibility to ensure that an acquisition program has demonstrated sufficient knowledge to enter into a risk reduction phase following Milestone A and has sound plans to progress to the development phase before granting milestone approval.