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

Subtitle B — Department of Defense Acquisition Agility

P. L. 114-

House Conference Report. 114-840

SEC. 805. MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF MAJOR WEAPON SYSTEMS.

(a) Modular Open System Approach.--

(1) In general.--Part IV of subtitle A of title 10, United States Code, is amended by inserting after chapter 144A the following new chapter:

``CHAPTER 144B--WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS

``Subchapter Sec.

``I. Modular Open System Approach in Development of Weapon Systems 2446a

``II. Development, Prototyping, and Deployment of Weapon System Components and Technology........................... 2447a

``III. Cost, Schedule, and Performance of Major Defense Acquisition Programs................................ 2448a

``SUBCHAPTER I--MODULAR OPEN SYSTEM APPROACH IN DEVELOPMENT OF WEAPON SYSTEMS

``Sec.

``2446a. Requirement for modular open system approach in major defense acquisition programs; definitions.

``2446b. Requirement to address modular open system approach in program capabilities development and acquisition weapon system design.

``2446c. Requirements relating to availability of major system interfaces and support for modular open system approach.

``Sec. 2446a. Requirement for modular open system approach in major defense acquisition programs; definitions

``(a) Modular Open System Approach Requirement.--A major defense acquisition program that receives Milestone A or Milestone B approval after January 1, 2019, shall be designed and developed, to the maximum extent practicable, with a modular open system approach to enable incremental development and enhance competition, innovation, and interoperability.

``(b) Definitions.--In this chapter:

``(1) The term `modular open system approach' means, with respect to a major defense acquisition program, an integrated business and technical strategy that--

``(A) employs a modular design that uses major system interfaces between a major system platform and a major system component, between major system components, or between major system platforms;

``(B) is subjected to verification to ensure major system interfaces comply with, if available and suitable, widely supported and consensus-based standards;

``(C) uses a system architecture that allows severable major system components at the appropriate level to be incrementally added, removed, or replaced throughout the life cycle of a major system platform to afford opportunities for enhanced competition and innovation while yielding--

``(i) significant cost savings or avoidance;

``(ii) schedule reduction;

``(iii) opportunities for technical upgrades;

``(iv) increased interoperability, including system of systems interoperability and mission integration; or

``(v) other benefits during the sustainment phase of a major weapon system; and

``(D) complies with the technical data rights set forth in section 2320 of this title.

``(2) The term `major system platform' means the highest level structure of a major weapon system that is not physically mounted or installed onto a higher level structure and on which a major system component can be physically mounted or installed.

``(3) The term `major system component'--

``(A) means a high level subsystem or assembly, including hardware, software, or an integrated assembly of both, that can be mounted or installed on a major system platform through well-defined major system interfaces; and

``(B) includes a subsystem or assembly that is likely to have additional capability requirements, is likely to change because of evolving technology or threat, is needed for interoperability, facilitates incremental deployment of capabilities, or is expected to be replaced by another major system component.

``(4) The term `major system interface'--

``(A) means a shared boundary between a major system platform and a major system component, between major system components, or between major system platforms, defined by various physical, logical, and functional characteristics, such as electrical, mechanical, fluidic, optical, radio frequency, data, networking, or software elements; and

``(B) is characterized clearly in terms of form, function, and the content that flows across the interface in order to enable technological innovation, incremental improvements, integration, and interoperability.

``(5) The term `program capability document' means, with respect to a major defense acquisition program, a document that specifies capability requirements for the program, such as a capability development document or a capability production document.

``(6) The terms `program cost targets' and `fielding target' have the meanings provided in section 2448a(a) of this title.

``(7) The term `major defense acquisition program' has the meaning provided in section 2430 of this title.

``(8) The term `major weapon system' has the meaning provided in section 2379(f) of this title.

``Sec. 2446b. Requirement to address modular open system approach in program capabilities development and acquisition weapon system design

``(a) Program Capability Document.--A program capability document for a major defense acquisition program shall identify and characterize--

``(1) the extent to which requirements for system performance are likely to evolve during the life cycle of the system because of evolving technology, threat, or interoperability needs; and

``(2) for requirements that are expected to evolve, the minimum acceptable capability that is necessary for initial operating capability of the major defense acquisition program.

``(b) Analysis of Alternatives.--The Director of Cost Assessment and Performance Evaluation, in formulating study guidance for analyses of alternatives for major defense acquisition programs and performing such analyses under section 139a(d)(4) of this title, shall ensure that any such analysis for a major defense acquisition program includes consideration of evolutionary acquisition, prototyping, and a modular open system approach.

``(c) Acquisition Strategy.--In the case of a major defense acquisition program that uses a modular open system approach, the acquisition strategy required under section 2431a of this title shall--

``(1) clearly describe the modular open system approach to be used for the program;

``(2) differentiate between the major system platform and major system components being developed under the program, as well as major system components developed outside the program that will be integrated into the major defense acquisition program;

``(3) clearly describe the evolution of major system components that are anticipated to be added, removed, or replaced in subsequent increments;

``(4) identify additional major system components that may be added later in the life cycle of the major system platform;

``(5) clearly describe how intellectual property and related issues, such as technical data deliverables, that are necessary to support a modular open system approach, will be addressed; and

``(6) clearly describe the approach to systems integration and systems-level configuration management to ensure mission and information assurance.

``(d) Request for Proposals.--The milestone decision authority for a major defense acquisition program that uses a modular open system approach shall ensure that a request for proposals for the development or production phases of the program shall describe the modular open system approach and the minimum set of major system components that must be included in the design of the major defense acquisition program.

``(e) Milestone B.--A major defense acquisition program may not receive Milestone B approval under section 2366b of this title until the milestone decision authority determines in writing that--

``(1) in the case of a program that uses a modular open system approach--

``(A) the program incorporates clearly defined major system interfaces between the major system platform and major system components, between major system components, and between major system platforms;

 ``(B) such major system interfaces are consistent with the widely supported and consensus-based standards that exist at the time of the milestone decision, unless such standards are unavailable or unsuitable for particular major system interfaces; and

``(C) the Government has arranged to obtain appropriate and necessary intellectual property rights with respect to such major system interfaces upon completion of the development of the major system platform; or

``(2) in the case of a program that does not use a modular open system approach, that the use of a modular open system approach is not practicable.

``Sec. 2446c. Requirements relating to availability of major system interfaces and support for modular open system approach

``The Secretary of each military department shall--

``(1) coordinate with the other military departments, the defense agencies, defense and other private sector entities, national standards-setting organizations, and, when appropriate, with elements of the intelligence community with respect to the specification, identification, development, and maintenance of major system interfaces and standards for use in major system platforms, where practicable;

``(2) ensure that major system interfaces incorporate commercial standards and other widely supported consensus-based standards that are validated, published, and maintained by recognized standards organizations to the maximum extent practicable;

``(3) ensure that sufficient systems engineering and development expertise and resources are available to support the use of a modular open system approach in requirements development and acquisition program planning;

``(4) ensure that necessary planning, programming, and budgeting resources are provided to specify, identify, develop, and sustain the modular open system approach, associated major system interfaces, systems integration, and any additional program activities necessary to sustain innovation and interoperability; and

``(5) ensure that adequate training in the use of a modular open system approach is provided to members of the requirements and acquisition workforce.''.

(2) Clerical amendment.--The table of chapters for title 10, United States Code, is amended by adding after the item relating to chapter 144A the following new item:

``144B. Weapon Systems Development and Related Matters..........2446a''.

(3) Conforming amendment.--Section 2366b(a)(3) of such title is amended--

(A) by striking ``and'' at the end of subparagraph (K); and

(B) by inserting after subparagraph (L) the following new subparagraph:

``(M) the requirements of section 2446b(e) of this title are met; and''.

(4) Effective date.--Subchapter I of chapter 144B of title 10, United States Code, as added by paragraph (1), shall take effect on January 1, 2017.

(b) Requirement to Include Modular Open System Approach in Selected Acquisition Reports.--Section 2432(c)(1) of such title is amended--

(1) by striking ``and'' at the end of subparagraph (F);

(2) by redesignating subparagraph (G) as subparagraph (H); and

(3) by inserting after subparagraph (F) the following new subparagraph (G):

``(G) for each major defense acquisition program that receives Milestone B approval after January 1, 2019, a brief summary description of the key elements of the modular open system approach as defined in section 2446a of this title or, if a modular open system approach was not used, the rationale for not using such an approach; and''.

Modular open system approach in development of major weapon systems (sec. 805)

The House amendment contained a provision (sec. 1701) that would require all major defense acquisition programs (MDAPs) initiated after January 1, 2019, to be designed and developed with a modular open system approach (MOSA), to the maximum extent practicable.

The Senate bill contained no similar provision.

The Senate recedes with an amendment that would clarify when programs are required to start using MOSA. The amendment also would modify the definition of a major system interface to include characterization of the form, function, and content that flows across the interface. The amendment would require the acquisition strategy for a program that uses MOSA to also describe the approach to systems integration and configuration management.

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