SEC. 811. INCLUSION OF MAJOR
SUBPROGRAMS TO MAJOR DEFENSE ACQUISITION PROGRAMS UNDER
ACQUISITION REPORTING REQUIREMENTS.(a) Authority To Designate Major Subprograms as Subject to
Acquisition Reporting Requirements-
(1) IN
GENERAL- Chapter 144 of title 10, United States Code, is
amended by inserting after section 2430 the following new
section:
`Sec.
2430a. Major subprograms
`(a) Authority To Designate Major Subprograms as Subject to
Acquisition Reporting Requirements- (1) If the Secretary of
Defense determines that a major defense acquisition program
requires the delivery of two or more categories of end items
which differ significantly from each other in form and
function, the Secretary may designate each such category of
end items as a major subprogram for the purposes of
acquisition reporting under this chapter.
`(2) The Secretary shall notify the congressional defense
committees in writing of any proposed designation pursuant to
paragraph (1) not less than 30 days before the date such
designation takes effect.
`(b) Reporting Requirements- If the Secretary designates a
major subprogram of a major defense acquisition program in
accordance with subsection (a), Selected Acquisition Reports,
unit cost reports, and program baselines under this chapter
shall reflect cost, schedule, and performance information--
`(1)
for the major defense acquisition program as a whole; and
`(2) for each major subprogram of the major defense
acquisition program so designated.
`(c)
Requirement to Cover Entire Major Defense Acquisition Program-
If a subprogram of a major defense acquisition program is
designated as a major subprogram under subsection (a), all
other elements of the major defense acquisition program shall
be appropriately organized into one or more subprograms under
the major defense acquisition program, each of which
subprograms, as so organized, shall be treated as a major
subprogram under subsection (a).
`(d) Definitions- Notwithstanding paragraphs (1) and (2) of
section 2432(a) of this title, in the case of a major defense
acquisition program for which the Secretary has designated one
or more major subprograms under this section for the purposes
of this chapter--
`(1)
the term `program acquisition unit cost' applies at the
level of the subprogram and means the total cost for the
development and procurement of, and specific military
construction for, the major defense acquisition program that
is reasonably allocable to each such major subprogram,
divided by the relevant number of fully-configured end items
to be produced under such major subprogram;
`(2) the term `procurement unit cost' applies at the level
of the subprogram and means the total of all funds
programmed to be available for obligation for procurement
for each such major subprogram, divided by the number of
fully-configured end items to be procured under such major
subprogram;
`(3) the term `major contract', with respect to a designated
major subprogram, means each of the six largest prime,
associate, or Government furnished equipment contracts under
the subprogram that is in excess of $40,000,000 and that is
not a firm-fixed price contract; and
`(4) the term `life cycle cost', with respect to a
designated major subprogram, means all costs of development,
procurement, military construction, and operations and
support, without regard to funding source or management
control.'.
(2) CLERICAL AMENDMENT- The table of sections at the
beginning of chapter 144 of such title is amended by
inserting after the item relating to section 2430 the
following new item:
`2430a. Major subprograms.'.
(b)
Conforming Amendments to Section 2432- Section 2432 of such
title is amended--
(1) in
subsection (b)(2)(A), by inserting `for the program (or for
each designated subprogram under the program)' after
`procurement unit cost';
(2) in subsection (c)--
(A)
in paragraph (1)(B)--
(i)
by inserting `or designated major subprogram' after `for
each major defense acquisition program'; and
(ii) by inserting `or subprogram' after `the program';
(B)
in paragraph (1)(C)--
(i)
by inserting `or designated major subprogram' after `major
defense acquisition program'; and
(ii) by inserting `or subprogram' after `the program'; and
(C)
in paragraph (3)(A), by inserting `and each designated major
subprogram' after `for each major defense acquisition
program';
(3) in
subsection (e)--
(A)
in paragraph (3), by inserting before the period the
following: `for the program (or for each designated major
subprogram under the program)';
(B) in paragraph (5), by inserting before the period the
following: `(or for each designated major subprogram under
the program)';
(C) in paragraph (7), by inserting `or subprogram' after `of
the program' each place it appears; and
(D) in paragraph (8), by inserting `and designated major
subprograms under the program' after `the program';
(4) in
subsection (g)--
(A)
by inserting `or designated major subprogram' after `major
defense acquisition program'; and
(B) by inserting `or subprogram' after `the program' each
place it appears; and
(5) in
subsection (h)(2)(C), by inserting `and designated major
subprograms under the program' after `the development
program'.
(c)
Conforming Amendments to Section 2433- Section 2433 of such
title is amended--
(1) in
subsection (a)--
(A)
in paragraph (1), by striking `The terms' and inserting
`Except as provided in section 2430a(c) of this title, the
terms';
(B) in paragraph (2)--
(i)
by inserting `or designated major subprogram' after `major
defense acquisition program'; and
(ii) by inserting `or subprogram' after `the program';
(C)
in paragraph (4)--
(i)
by inserting `or designated major defense subprogram'
after `major defense acquisition program' each place it
appears; and
(ii) by inserting `or subprogram' after `for the program'
each place it appears; and
(D)
in paragraph (5)--
(i)
by inserting `or designated major defense subprogram'
after `major defense acquisition program' each place it
appears; and
(ii) by inserting `or subprogram' after `for the program'
each place it appears;
(2)
in subsection (b)--
(A) in the matter preceding paragraph (1), by inserting
`(or of each designated major subprogram under the
program)' after `unit costs of the program';
(B) in paragraph (1), by inserting before the period the
following: `for the program (or for each designated major
subprogram under the program)';
(C) in paragraph (2), by inserting before the period the
following: `for the program (or for each designated major
subprogram under the program)'; and
(D) in paragraph (5), by inserting `or subprogram' after
`the program' each place it appears (other than the last
place it appears);
(3)
in subsection (c)--
(A) by striking `the program acquisition unit cost for the
program or the procurement unit cost for the program' and
inserting `the program acquisition unit cost for the
program (or for a designated major subprogram under the
program) or the procurement unit cost for the program (or
for such a subprogram)'; and
(B) by striking `for the program' after `significant cost
growth threshold';
(4)
in subsection (d)--
(A) in paragraph (1)--
(i) by inserting `or any designated major subprogram
under the program' after `major defense acquisition
program'; and
(ii) by inserting `or subprogram' after `for the
program' each place it appears;
(B) in paragraph (2)--
(i) by inserting `or any designated major subprogram
under the program' after `major defense acquisition
program'; and
(ii) by inserting `or subprogram' after `for the
program' each place it appears; and
(C) in paragraph (3), by striking `such program' and
inserting `the program or subprogram concerned';
(5)
in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by inserting `or
designated major subprogram' after `major defense
acquisition program'; and
(II) by inserting `or subprogram' after `for the
program'; and
(ii) in subparagraph (B)--
(I) by inserting `or
designated major subprogram' after `major defense
acquisition program'; and
(II) by inserting `or subprogram' after `that
program'; and
(B) in paragraph (2), in the matter preceding
subparagraph (A)--
(i) by inserting `or
designated major subprogram' after `major defense
acquisition program'; and
(ii) by inserting `or subprogram' after `for the
program'; and
(6) in subsection (g)--
(A) in paragraph (1)--
(i) in subparagraph
(D)--
(I) by inserting
`(and for each designated major subprogram under the
program)' after `for the program'; and
(II) by inserting `or subprogram' after `in which
the program';
(ii) in subparagraph (E), by inserting `for the
program (and for each designated major subprogram
under the program)' after `program acquisition
cost';
(iii) in subparagraph (F), by inserting before the
period the following: `for the program (or for any
designated major subprogram under the program)';
(iv) in subparagraph (G)--
(I) by inserting
`and each designated major subprogram under the
program' after of `the program'; and
(II) by inserting `or subprogram' after `for the
program' each place it appears;
(v) in subparagraph
(H)--
(I) by inserting
`and each designated major subprogram under the
program' after `the program' the first place it
appears; and
(II) by inserting `or subprogram' after `the
program' the second place it appears;
(vi) in subparagraph
(J), by inserting `for the program (or for each
designated major subprogram under the program)'
after `program acquisition unit cost';
(vii) in subparagraph (K), by inserting `for the
program (or for each designated major subprogram
under the program)' after `procurement unit cost'
each place it appears;
(viii) in subparagraph (O), by inserting before the
period the following: `for the program (or for any
designated major subprogram under the program)';
(ix) in subparagraph (P)--
(I) by inserting
`or subprogram' after `the program' the first
place it appears; and
(II) by inserting `and any designated major
subprogram under the program' after `the program'
the second place it appears; and
(x) in subparagraph
(Q), by inserting `or any designated major
subprogram under the program' after `the program';
and
(B) in paragraph (2)--
(i) by inserting `or
designated major subprogram' after `major defense
acquisition program';
(ii) by inserting `or subprogram' after `the entire
program'; and
(iii) by inserting `or subprogram' after `a
program'.
(d)
Conforming Amendments to Section 2435- Section 2435 of such
title is amended-
(1) in
subsection (a)--
(A)
in paragraph (1), by inserting `and for each designated
major subprogram under the program' after `major defense
acquisition program'; and
(B) in paragraph (2), by inserting `or designated major
subprogram' after `major defense acquisition program';
(2) in
subsection (b)--
(A)
by inserting `or any designated major subprogram under the
program' after `major defense acquisition program'; and
(B) by inserting `or subprogram' after `the program';
(3) in
subsection (c)--
(A)
by inserting `or any designated major subprogram under the
program' after `major defense acquisition program'; and
(B) by inserting `or subprogram' after `the program' each
place it appears;
(4) in
subsection (d)--
(A)
by inserting `or any designated major subprogram under the
program' after `major defense acquisition program' each
place it appears;
(B) in paragraph (1)--
(i)
by inserting `or subprogram' after `the program' each
place it appears; and
(ii) by inserting `or subprogram' after `at program'; and
(C)
in paragraph (2), by inserting `or subprogram' after `for
the program' each place it appears; and
(5) in
subsection (e)--
(A)
by inserting `(or in the case of a major defense acquisition
program with one or more designated major subprograms,
approved baseline descriptions for such subprograms)' after
`baseline description';
(B) by striking `the baseline' and inserting `any such
baseline description'; and
(C) by inserting `or subprogram' after `of the program'.
Inclusion of major subprograms to
major defense acquisition programs under acquisition reporting
requirements (sec. 801)
The committee recommends a provision that
would authorize the Secretary of Defense to designate as major
subprograms of a major defense acquisition program (MDAP) two or
more categories of end items to be delivered under the MDAP that
differ significantly from each other in form and function. If the
Secretary chooses to designate major subprograms under this
provision, program acquisition unit costs and procurement unit
costs would be reported to Congress for each of the major
subprograms, rather than for the MDAP as a whole. Other key
information would be reported to Congress both for the MDAP as a
whole and for each of the major subprograms.
The underlying assumption for unit cost
reporting is that the quantity of items to be provided is
relatively uniform in terms of cost and functionality. The
committee recognizes that such uniformity may not be present in
the case of a `system of systems,' such as the Future Combat
Systems and the Ballistic Missile Defense System, which includes
multiple end items that differ significantly from each other in
form and function. The provision recommended by the committee
would authorize the Secretary to break the MDAP into major
subprograms only in such cases, to ensure the rational and
consistent reporting of unit costs. The committee notes that this
authority does not apply to multiple variants of a single system.
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