SEC. 807. COST, SCHEDULE, AND PERFORMANCE
OF MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Cost, Schedule, And Performance Of Major Defense Acquisition
Programs.—
(1) IN GENERAL.—Chapter 144B of title
10, United States Code, as added by section 805, is amended by
adding at the end the following new subchapter:
“SUBCHAPTER III—COST,
SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE ACQUISITION PROGRAMS
“Sec.
“2448a. Program cost, fielding, and performance goals in
planning major defense acquisition programs.
“2448b. Independent technical risk assessments.
Ҥ 2448a. Program cost,
fielding, and performance goals in planning major defense
acquisition programs
“(a) Program Cost And Fielding Targets.—
(1) Before funds are
obligated for technology development, systems development, or
production of a major defense acquisition program, the
Secretary of Defense shall ensure, by establishing the goals
described in paragraph (2), that the milestone decision
authority for the major defense acquisition program approves a
program that will—
“(A) be affordable;
“(B) incorporate program planning that anticipates the
evolution of capabilities to meet changing threats,
technology insertion, and interoperability; and
“(C) be fielded when needed.
“(2) The goals described
in this paragraph are goals for—
“(A) the procurement
unit cost and sustainment cost (referred to in this section
as the ‘program cost targets’);
“(B) the date for initial operational capability (referred
to in this section as the ‘fielding target’); and
“(C) technology maturation, prototyping, and a modular open
system approach to evolve system capabilities and improve
interoperability.
“(b) Delegation.—The
responsibilities of the Secretary of Defense in subsection (a)
may be delegated only to the Deputy Secretary of Defense.
“(c) Definitions.—In this section:
“(1) The term
‘procurement unit cost’ has the meaning provided in section
2432(a)(2) of this title.
“(2) The term ‘initial capabilities document’ has the meaning
provided in section 2366a(d)(2) of this title.
Ҥ 2448b. Independent
technical risk assessments
“(a) In General.—With respect to a major defense acquisition
program, the Secretary of Defense shall ensure that an
independent technical risk assessment is conducted—
“(1) before any decision
to grant Milestone A approval for the program pursuant to
section 2366a of this title, that identifies critical
technologies and manufacturing processes that need to be
matured; and
“(2) before any decision to grant Milestone B approval for the
program pursuant to section 2366b of this title, any decision
to enter into low-rate initial production or full-rate
production, or at any other time considered appropriate by the
Secretary, that includes the identification of any critical
technologies or manufacturing processes that have not been
successfully demonstrated in a relevant environment.
“(b) Categorization Of
Technical Risk Levels.—The Secretary shall issue guidance and a
framework for categorizing the degree of technical and
manufacturing risk in a major defense acquisition program.”.
(2) EFFECTIVE
DATE.—Subchapter III of chapter 144B of title 10, United
States Code, as added by paragraph (1), shall apply with
respect to major defense acquisition programs that reach
Milestone A after October 1, 2017.
(b) Modification Of
Milestone Decision Authority.—Effective January 1, 2017,
subsection (d) of section 2430 of title 10, United States Code,
as added by section 825(a) of the National Defense Authorization
Act for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 907), is
amended—
(1) in paragraph (2)(A),
by inserting “subject to paragraph (5),” before “the Secretary
determines”; and
(2) by adding at the end the following new paragraph:
“(5) The authority of the Secretary of Defense to designate an
alternative milestone decision authority for a program with
respect to which the Secretary determines that the program is
addressing a joint requirement, as set forth in paragraph
(2)(A), shall apply only for a major defense acquisition
program that reaches Milestone A after October 1, 2016, and
before October 1, 2019.”.
(c) Adherence To
Requirements In Major Defense Acquisition Programs.—Section 2547
of title 10, United States Code, is amended—
(1) by redesignating
subsections (b) and (c) as subsections (c) and (d),
respectively;
(2) by inserting after subsection (a) the following new
subsection (b):
“(b) Adherence To Requirements In Major Defense Acquisition
Programs.—The Secretary of the military department concerned
shall ensure that the program capability document supporting a
Milestone B or subsequent decision for a major defense
acquisition program may not be approved until the chief of the
armed force concerned determines in writing that the
requirements in the document are necessary and realistic in
relation to the program cost and fielding targets established
under section 2448a(a) of this title.”; and
(3) by adding at the end of subsection (d), as so redesignated,
the following new paragraph:
“(3) The term ‘program capability document’ has the meaning
provided in section 2446a(b)(5) of this title.”.
(d) Amendment Relating To
Determination Required Before Milestone A Approval.—Section
2366a(b)(4) of title 10, United States Code, is amended by
inserting after “areas of risk” the following: “, including
risks determined by the identification of critical technologies
required under section 2448b(a)(1) of this title or any other
risk assessment”.
(e) Amendment Relating To Certification Required Before
Milestone B Approval.—Section 2366b(a) of title 10, United
States Code, is amended—
(1) in paragraph (2), by
striking “assessment by the Assistant Secretary” and all that
follows through “Test and Evaluation” and inserting “technical
risk assessment conducted under section 2448b of this title”;
and
(2) in paragraph (3), as amended by section 805(a)(3)(B)—
(A) by striking “and”
at the end of subparagraph (C);
(B) by redesignating subparagraphs (D) through (M) as
subparagraphs (E) through (N), respectively; and
(C) by inserting after subparagraph (C) the following new
subparagraph (D):
“(D) the estimated
procurement unit cost for the program and the estimated date
for initial operational capability for the baseline
description for the program (established under section 2435)
do not exceed the program cost and fielding targets
established under section 2448a(a) of this title, or, if
such estimated cost is higher than the program cost targets
or if such estimated date is later than the fielding target,
the program cost targets have been increased or the fielding
target has been delayed by the Secretary of Defense after a
request for such increase or delay by the milestone decision
authority;”.
|
Cost, schedule, and performance of major defense acquisition
programs (sec. 807)
The House amendment contained a provision (sec. 1703) that
would require the Secretary of Defense, or his designee, to
assign program cost and fielding targets when major defense
acquisition programs (MDAPs) are initiated.
The Senate bill contained no similar provision.
The Senate recedes with an amendment that would clarify
that cost and fielding targets should be established before
funds are obligated for technology development, system
development, or production of a major defense acquisition
program. The amendment would modify the definition of the cost
target to include the program procurement unit cost and sustainment cost. The amendment would remove the list of
elements that should be considered in establishing the program
goals because such elements are generally known and are included
in existing acquisition policy guidance. The amendment would
modify the delegation of authority for establishing program
targets only to the Deputy Secretary of Defense. The amendment
also would clarify that the required independent technical risk
assessments conducted prior to program milestone approvals
should identify any manufacturing processes that need to be
matured.
|
