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TITLE 1 -- PROCUREMENT

Subtitle C--Navy Programs

JWNDAA Section

House Conference Report 109-702

(a) Quality Control Policy- The Secretary of Defense shall prescribe in regulations a quality control policy for the procurement of the following:

(1) Ship critical safety items.

(2) Modifications, repair, and overhaul of ship critical safety items.

(b) Elements- The policy required under subsection (a) shall include requirements as follows:

(1) That the head of the design control activity for ship critical safety items establish processes to identify and manage the procurement, modification, repair, and overhaul of such items.

(2) That the head of the contracting activity for a ship critical safety item enter into a contract for the procurement, modification, repair, or overhaul of such item only with a source on a qualified manufacturers list or a source approved by the design control activity in accordance with section 2319 of title 10, United States Code (as amended by subsection (d)).

(3) That the ship critical safety items delivered, and the services performed with respect to such items, meet all technical and quality requirements specified by the design control activity.

(c) Definitions- In this section, the terms `ship critical safety item' and `design control activity' have the meanings given such terms in subsection (g) of section 2319 of title 10, United States Code (as so amended).

(d) Conforming Amendments- Section 2319 of title 10, United States Code, is amended--

(1) in subsection (c)(3), by inserting `or ship critical safety item' after `aviation critical safety item'; and

(2) in subsection (g)--

(A) by redesignating paragraph (2) as paragraph (3);

(B) by inserting after paragraph (1) the following new paragraph (2):

`(2) The term `ship critical safety item' means any ship part, assembly, or support equipment containing a characteristic the failure, malfunction, or absence of which could cause a catastrophic or critical failure resulting in loss of or serious damage to the ship or unacceptable risk of personal injury or loss of life.'; and

(C) in paragraph (3), as so redesignated--

(i) by inserting `or ship critical safety item' after `aviation critical safety item';

(ii) by inserting `, or the seaworthiness of a ship or ship equipment,' after `equipment'; and

(iii) by striking `the item' and inserting `such item'.

The Senate amendment contained a provision (sec. 809) that would require the Secretary of Defense to prescribe in regulation a quality control policy for the procurement of ship critical safety items and the procurement of modifications, repair, and overhaul of such items.

The House bill contained a similar provision (sec. 126).

The House recedes.

The conferees agree to extend the date for the submission of the Comptroller General’s report to the congressional defense committees required by the Senate report accompanying S. 2766 (S. Rept. 109–254) of the John Warner National Defense Authorization Act for Fiscal Year 2007 until February 1, 2008. The conferees expect the Comptroller General to brief the congressional defense committees on the initial findings of the report by April 1, 2007.

Senate Armed Services Committee Report 109-254

The committee recommends a provision that would require the Secretary of Defense to prescribe in regulation a quality control policy for the procurement of ship critical safety items and the procurement of modifications, repair, and overhaul of such items. This provision would bring the quality control requirements for ship critical safety items and related services in line with the requirements for aviation critical safety items.

The committee remains concerned by periodic reports about problems with the quality of critical parts for major weapon systems acquired by the Department of Defense. For this reason, the committee directs the Government Accountability Office (GAO) to conduct a comprehensive review of the quality assurance and quality control systems used by the Department and its largest contractors. The GAO review should compare the systems used by the Department and its contractors to the quality control and quality assurance systems used by private sector companies who are considered to be industry leaders, and make such recommendations as the Comptroller General determines to be appropriate. The Comptroller General will submit a report to the congressional defense committees no later than April 1, 2007, on the findings of the review.

House Armed Services Committee Report 109-254

SECTION 126--QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS AND RELATED SERVICES

This section would amend chapter 633 of title 10, United States Code, by appending a new section 7317 that would require the Secretary of Defense to prescribe in regulations a quality control policy for the procurement of ship critical safety items and the procurement of modifications, repair, and overhaul of such items. This section would require the head of the design control activity for ship critical safety items establish processes to identify and manage

these activities, the head of the contracting activity for a ship critical safety item enter into a contract for these activities only with an approved source, and the ship critical safety items delivered and the services performed meet the technical and quality requirements specified by the design control activity. This section would define the term `ship critical safety item' as any part, assembly, or support equipment of a vessel, the failure, malfunction, or absence of which may cause a catastrophic or critical failure resulting in loss or serious damage to the vessel, or unacceptable risk of personal injury or loss of life. This section would also make conforming amendments to section 2319 of title 10, United States Code.