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TITLE II--ACQUISITION POLICY

Section 204

House Conference Report 111-124

(a) Modification to Certification Requirement- Subsection (a) of section 2366a of title 10, United States Code, is amended by striking `may not receive Milestone A approval, or Key Decision Point A approval in the case of a space program,' and inserting `may not receive Milestone A approval, or Key Decision Point A approval in the case of a space program, or otherwise be initiated prior to Milestone B approval, or Key Decision Point B approval in the case of a space program,'.

(b) Modification to Notification Requirement- Subsection (b) of such section is amended--

(1) by inserting `(1)' before `With respect to';

(2) in paragraph (1), as so designated, by striking `by at least 25 percent,' and inserting `by at least 25 percent, or the program manager determines that the period of time required for the delivery of an initial operational capability is likely to exceed the schedule objective established pursuant to section 181(b)(5) of this title by more than 25 percent,'; and

(3) by adding at the end the following new paragraph:

`(2) Not later than 30 days after a program manager submits a notification to the Milestone Decision Authority pursuant to paragraph (1) with respect to a major defense acquisition program, the Milestone Decision Authority shall submit to the congressional defense committees a report that--

`(A) identifies the root causes of the cost or schedule growth in accordance with applicable policies, procedures, and guidance;

`(B) identifies appropriate acquisition performance measures for the remainder of the development of the program; and

`(C) includes one of the following:

`(i) A written certification (with a supporting explanation) stating that--

`(I) the program is essential to national security;

`(II) there are no alternatives to the program that will provide acceptable military capability at less cost;

`(III) new estimates of the development cost or schedule, as appropriate, are reasonable; and

`(IV) the management structure for the program is adequate to manage and control program development cost and schedule.

`(ii) A plan for terminating the development of the program or withdrawal of Milestone A approval, or Key Decision Point A approval in the case of a space program, if the Milestone Decision Authority determines that such action is in the interest of national defense.'.

(c) Application to Ongoing Programs-

(1) IN GENERAL- Each major defense acquisition program described in paragraph (2) shall be certified in accordance with the requirements of section 2366a of title 10, United States Code (as amended by this section), within one year after the date of the enactment of this Act.

(2) COVERED PROGRAMS- The requirement in paragraph (1) shall apply to any major defense acquisition program that--

(A) was initiated before the date of the enactment of this Act; and

(B) as of the date of certification under paragraph (1) has not otherwise been certified pursuant to either section 2366a (as so amended) or 2366b of title 10, United States Code.

House Committee on Armed Services Report 111-101 with H. R. 2101

SECTION 203--REQUIREMENT FOR CERTIFICATION OF MAJOR SYSTEMS PRIOR TO MILESTONE B

This section would require the milestone decision authority for major defense acquisition programs (MDAP) to review programs currently between milestone A and milestone B consistent with the requirements of section 2366a of title 10, United States Code, relating to the requirements for milestone A approval, unless the program has already been subject to a review under that section. This section would also require the milestone decision authority to submit a report to the congressional defense committees within 30 days if a MDAP experiences cost growth of 25 percent or more or schedule delay of more than 25 percent prior to milestone B approval. The report would: identify the root causes of the cost or schedule growth for any such MDAP; identify appropriate metrics for the assessment of the program going forward; and certify the need to continue the program. The certification would: determine that the program is essential to national security; that there are no alternatives to the program that will provide acceptable capability at less cost; that new estimates of cost and schedule are reasonable; and that the management of the program is adequate. This section would require the milestone decision authority to terminate the program or rescind milestone A approval if the milestone decision authority determined that such action is in the interest of national defense.