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

P. L. 108-375

House Conference Report 108-767

SEC. 805. SUSTAINMENT PLANS FOR EXISTING SYSTEMS WHILE REPLACEMENT SYSTEMS ARE UNDER DEVELOPMENT.

(a) EXISTING SYSTEMS TO BE MAINTAINED WHILE REPLACEMENT SYSTEMS ARE UNDER DEVELOPMENT. —

(1) Chapter 144 of title 10, United States Code, is amended by inserting after section 2436 the following new section:

     "§ 2437. Development of major defense acquisition programs: sustainment of system to be replaced

"(a) REQUIREMENT FOR SUSTAINING EXISTING FORCES. —

(1) The Secretary of Defense shall require that, whenever a new major defense acquisition program begins development, the defense acquisition authority responsible for that program shall develop a plan (to be known as a ‘sustainment plan’) for the existing system that the system under development is intended to replace. Any such sustainment plan shall provide for an appropriate level of budgeting for sustaining the existing system until the replacement system to be developed under the major defense acquisition program is fielded and assumes the majority of responsibility for the mission of the existing system. This section does not apply to a major defense acquisition that reaches initial operational capability before October 1, 2008.

"(2) In this section, the term ‘defense acquisition authority’ means the Secretary of a military department or the commander of the United States Special Operations Command.

"(b) SUSTAINMENT PLAN. —

The Secretary of Defense shall require that each sustainment plan under this section include, at a minimum, the following:

"(1) The milestone schedule for the development of the major defense acquisition program, including the scheduled dates for low-rate initial production, initial operational capability, full-rate production, and full operational capability and the date as of when the replacement system is scheduled to assume the majority of responsibility for the mission of the existing system.

"(2) An analysis of the existing system to as- sess the following:

"(A) Anticipated funding levels necessary to —

     "(i) ensure acceptable reliability and availability rates for the existing system; and

     "(ii) maintain mission capability of the existing system against the relevant threats.

"(B) The extent to which it is necessary and appropriate to —

     "(i) transfer mature technologies from the new system or other systems to enhance the mission capability of the existing system against relevant threats; and

     "(ii) provide interoperability with the new system during the period from initial fielding until the new system assumes the majority of responsibility for the mission of the existing system.

"(c) EXCEPTIONS. — Subsection (a) shall not apply to a major defense acquisition program if the Secretary of Defense determines that —

"(1) the existing system is no longer relevant to the mission;

"(2) the mission has been eliminated;

"(3) the mission has been consolidated with an- other mission in such a manner that another existing system can adequately meet the mission requirements; or

"(4) the duration of time until the new system assumes the majority of responsibility for the existing system’s mission is sufficiently short so that mission availability, capability, interoperability, and force protection requirements are maintained.

"(d) WAIVER. — The Secretary of Defense may waive the applicability of subsection (a) to a major defense acquisition program if the Secretary determines that, but for such a waiver, the Department would be unable to meet national security objectives. Whenever the Secretary makes such a determination and authorizes such a waiver, the Secretary shall submit notice of such waiver and of the Secretary’s determination and the reasons therefor in writing to the congressional defense committees.’’.

(2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2436 the following new item:

"2437. Development of major defense acquisition programs: sustainment of system to be replaced.".

(b) APPLICATION TO EXISTING PROGRAMS IN DEVELOPMENT. — Section 2437 of title 10, United States Code, as added by subsection (a), shall apply with respect to a major defense acquisition program for a system that is under development as of the date of the enactment of this Act and is not expected to reach initial operational capability before October 1, 2008. The Secretary of Defense shall require that a sustainment plan under that section be developed not later than one year after the date of the enactment of this Act for the existing system that the system under development is intended to replace.

The House bill contained a provision (sec. 821) that would require the Department of Defense to plan and budget for the sustainment and modernization of current military systems until such time that the replacement system under development is fielded and assumes responsibility for the mission.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would clarify the requirements of the provision and delete annual review and reporting requirements.

House Report 108-491