II 

116TH CONGRESS 

2D SESSION S. 4508 

To authorize a pilot program to explore the use of consumption-based 

solutions to address software-intensive warfighting capability. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 6, 2020 

Mr. ROUNDS introduced the following bill; which was read twice and referred 

to the Committee on Armed Services 

A BILL 

To authorize a pilot program to explore the use of consumption-based solutions to address software-intensive 

warfighting capability. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Warfighting Software 

5 Enhancement Act of 2020’’. 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 4508 IS

1 SEC. 2. PILOT PROGRAM EXPLORING THE USE OF CON2 SUMPTION-BASED SOLUTIONS TO ADDRESS 

3 SOFTWARE-INTENSIVE WARFIGHTING CAPA4 BILITY. 

5 (a) FINDING.—In its final report, the Section 809 

6 Panel recommended the adoption of consumption-based 

7 approaches at the Department of Defense, stating, ‘‘More 

8 things will be sold as a service in the future. XaaS could 

9 really mean everything in the context of the Internet of 

10 things (IoT). Consumption-based solutions are appearing 

11 in many industry sectors, from last mile transportation 

12 (e.g., bike shares and electric scooters) to agriculture (e.g., 

13 tractor-as-a-service for farmers in developing countries). 

14 Most smart phone users are familiar with software up15 dates that provide bug fixes or new features. A more ex16 treme example of technology innovation enabled by the 

17 IoT is the ability to deliver physical performance improve18 ments to vehicles through over-the-air software updates 

19 . . . In the not-so-distant future, cloud computing and the 

20 IoT will enable consumption-based solution offerings and 

21 delivery models that are hard to imagine today.’’ 

22 (b) SENSE OF CONGRESS.—It is the sense of Con23 gress— 

24 (1) that the Department of Defense should take 

25 advantage of ‘‘as-a-service’’ or ‘‘aaS’’ approaches in 

26 commercial capability development, particularly 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 4508 IS

1 where the capability is software-defined, and cloud2 enabled; 

3 (2) to support the Department of Defense’s 

4 commitment to new approaches to development and 

5 acquisition of software; 

6 (3) that the Department should explore a vari7 ety of approaches, to include the use of consump8 tion-based solutions for software-intensive 

9 warfighting capability; and 

10 (4) that, in conducting activities under the pilot 

11 program established under this program, the De12 partment should use the Software pathway under 

13 the new Adaptive Acquisition Framework. 

14 (c) IN GENERAL.—Subject to the availability of ap15 propriations, the Secretary of Defense is authorized to es16 tablish a pilot program to explore the use of consumption17 based solutions to address software-intensive warfighting 

18 capability. 

19 (d) SELECTION OF INITIATIVES.—The Secretary of 

20 each military department and the commander of each 

21 combatant command with acquisition authority shall pro22 pose for selection by the Secretary of Defense for the pilot 

23 program at least one and not more than three initiatives 

24 that are well-suited to explore consumption-based solu25 tions to address software-intensive warfighting capability. 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 4508 IS

1 The initiatives may be new or existing programs of record 

2 and shall focus on software-defined or machine-enabled 

3 warfighting applications, and may include applications 

4 that— 

5 (1) rapidly analyze sensor data; 

6 (2) secure warfighter networks, including multi7 level security; 

8 (3) swiftly transport information across various 

9 networks and network modalities; or 

10 (4) otherwise enable joint all-domain oper11 ational concepts, including in a contested environ12 ment. 

13 (e) CONTRACT REQUIREMENTS.—Contracts for con14 sumption-based solutions entered into pursuant to the 

15 pilot program shall provide for— 

16 (1) the solution to be measurable on a frequent 

17 interval customary for the type of solution; 

18 (2) the contractor to notify the government 

19 when consumption reaches 75 percent and 90 per20 cent of the contract funded amount; and 

21 (3) discretion for the contracting officer to add 

22 new features or capabilities without additional com23 petition for the contract, provided that the amount 

24 of the new features or capabilities does not exceed 

25 25 percent of the total contract value. 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•S 4508 IS

1 (f) DURATION OF INITIATIVES.—Each initiative car2 ried out under the pilot program shall be carried out dur3 ing the three-year period following selection of the initia4 tive. 

5 (g) MONITORING AND EVALUATION OF PILOT PRO6 GRAM.—The Director of the Office of Cost Assessment 

7 and Program Evaluation shall establish continuous moni8 toring to evaluate the pilot program established under sub9 section (c), including collecting data on cost, schedule, and 

10 performance from the program office, the user community, 

11 and the contractors. 

12 (h) REPORTS.— 

13 (1) INITIAL REPORT.—Not later than January 

14 31, 2021, the Secretary of Defense shall submit to 

15 the congressional defense committees a report on ini16 tiatives selected for the pilot program, roles and re17 sponsibilities for implementing the pilot program, 

18 and the monitoring and evaluation approach for the 

19 pilot. 

20 (2) PROGRESS REPORT.—Not later than April 

21 15, 2021, the Secretary of Defense shall submit to 

22 the congressional defense committees a report on the 

23 progress of the initiatives. 

24 (3) FINAL REPORT.—Not later than 3 years 

25 after the date of the enactment of this Act, the SecVerDate Sep 11 2014 18:19 Aug 27, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4508.IS S4508

pamtmann on DSKBC07HB2PROD with BILLS
6 

•S 4508 IS

1 retary of Defense shall submit to the congressional 

2 defense committees a report on the cost, schedule, 

3 and performance outcomes of the initiatives. The re4 port shall also include lessons learned about the use 

5 of consumption-based solutions for software-inten6 sive capabilities and any recommendations for statu7 tory or regulatory changes to facilitate their use. 

8 (i) DEFINITIONS.—In this section: 

9 (1) CONGRESSIONAL DEFENSE COMMITTEES.— 

10 The term ‘‘congressional defense committees’’ has 

11 the meaning given the term in section 101(a)(16) of 

12 title 10, United States Code. 

13 (2) CONSUMPTION-BASED SOLUTION.—The 

14 term ‘‘consumption-based solution’’ means any com15 bination of software, hardware or equipment, and 

16 labor or services that provides a seamless capability 

17 that is metered and billed based on actual usage and 

18 predetermined pricing per resource unit, and in19 cludes the ability to rapidly scale capacity up or 

20 down. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS