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

Subtitle C — Amendments to General Contracting Authorities, Procedures, and Limitations

DHNDAA Section

House  Armed Services Report 110-652

SEC. 821. DEFINITION OF SYSTEM FOR DEFENSE ACQUISITION CHALLENGE PROGRAM.

Section 2359b of title 10, United States Code, is amended by adding at the end the following new subsection:

`(l) System Defined- In this section, the term `system'--

`(1) means--

`(A) the organization of hardware, software, material, facilities, personnel, data, and services needed to perform a designated function with specified results (such as the gathering of specified data, its processing, and its delivery to users); or

`(B) a combination of two or more interrelated pieces (or sets) of equipment arranged in a functional package to perform an operational function or to satisfy a requirement; and

`(2) includes a major system (as defined in section 2302(5) of this title).'.

This section would amend section 2539b of title 10, United States Code, to define the term `system' to clarify that the term includes both functional systems, such as an avionics or fuel system, and also a major system as defined in section 2302 of title 10, United States Code.