I 

111TH CONGRESS 

1ST SESSION H. R. 1830 

To improve the organization and procedures of the Department of Defense 

for the acquisition of major weapon systems, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2009 

Mrs. TAUSCHER (for herself and Mr. SPRATT) introduced the following bill; 

which was referred to the Committee on Armed Services 

A BILL 

To improve the organization and procedures of the Department of Defense for the acquisition of major weapon 

systems, and for other purposes. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Weapon Systems Acquisition Reform Act of 2009’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Congressional defense committees. 

TITLE I—ACQUISITION ORGANIZATION 


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Sec. 101. Reports on systems engineering capabilities of the Department of Defense. 

Sec. 102. Director of Developmental Test and Evaluation. 

Sec. 103. Assessment of technological maturity of critical technologies of major 

defense acquisition programs by the Director of Defense Research and Engineering. 

Sec. 104. Director of Independent Cost Assessment. 

Sec. 105. Role of the commanders of the combatant commands in identifying 

joint military requirements. 

TITLE II—ACQUISITION POLICY 

Sec. 201. Consideration of trade-offs among cost, schedule, and performance in 

the acquisition of major weapon systems. 

Sec. 202. Preliminary design review for major defense acquisition programs. 

Sec. 203. Maximization of competition throughout the life cycle of major defense acquisition programs. 

Sec. 204. Critical cost growth in major defense acquisition programs. 

Sec. 205. Organizational conflicts of interest in the acquisition of major weapon 

systems. 

Sec. 206. Awards for Department of Defense personnel for excellence in the acquisition of products and services. 

1 SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES. 

2 In this Act, the term ‘‘congressional defense commit3 tees’’ has the meaning given that term in section 

4 101(a)(16) of title 10, United States Code. 

5 TITLE I—ACQUISITION 

6 ORGANIZATION 

7 SEC. 101. REPORTS ON SYSTEMS ENGINEERING CAPABILI8 TIES OF THE DEPARTMENT OF DEFENSE. 

9 (a) REPORTS BY SERVICE ACQUISITION EXECU10 TIVES.—Not later than 180 days after the date of the en11 actment of this Act, the service acquisition executive of 

12 each military department shall submit to the Under Sec13 retary of Defense for Acquisition, Technology, and Logis14 tics a report setting forth the following: 


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1 (1) A description of the extent to which such 

2 military department has in place development plan3 ning organizations and processes staffed by adequate 

4 numbers of personnel with appropriate training and 

5 expertise to ensure that— 

6 (A) key requirements, acquisition, and 

7 budget decisions made for each major weapon 

8 system prior to Milestones A and B are sup9 ported by a rigorous systems analysis and sys10 tems engineering process; 

11 (B) the systems engineering strategy for 

12 each major weapon system includes a robust 

13 program for improving reliability, availability, 

14 and maintainability as an integral part of de15 sign and development; and 

16 (C) systems engineering requirements, in17 cluding reliability, availability, and maintain18 ability requirements, are identified during the 

19 Joint Capabilities Integration Development Sys20 tem process and incorporated into contract re21 quirements for each major weapon system. 

22 (2) A description of the actions that such mili23 tary department has taken, or plans to take, to— 


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1 (A) establish needed development planning 

2 and systems engineering organizations and 

3 processes; and 

4 (B) attract, develop, retain, and reward 

5 systems engineers with appropriate levels of 

6 hands-on experience and technical expertise to 

7 meet the needs of such military department. 

8 (b) REPORT BY UNDER SECRETARY OF DEFENSE

9 FOR ACQUISITION, TECHNOLOGY, AND LOGISTICS.—Not 

10 later than 270 days after the date of the enactment of 

11 this Act, the Under Secretary of Defense for Acquisition, 

12 Technology, and Logistics shall submit to the Committee 

13 on Armed Services of the Senate and the Committee on 

14 Armed Services of the House of Representatives a report 

15 on the system engineering capabilities of the Department 

16 of Defense. The report shall include, at a minimum, the 

17 following: 

18 (1) An assessment by the Under Secretary of 

19 the reports submitted by the service acquisition ex20 ecutives pursuant to subsection (a) and of the ade21 quacy of the actions that each military department 

22 has taken, or plans to take, to meet the systems en23 gineering and development planning needs of such 

24 military department. 


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1 (2) An assessment of each of the recommenda2 tions of the report on Pre-Milestone A and Early3 Phase Systems Engineering of the Air Force Studies 

4 Board of the National Research Council, including 

5 the recommended checklist of systems engineering 

6 issues to be addressed prior to Milestones A and B, 

7 and the extent to which such recommendations 

8 should be implemented throughout the Department 

9 of Defense. 

10 SEC. 102. DIRECTOR OF DEVELOPMENTAL TEST AND EVAL11 UATION. 

12 (a) ESTABLISHMENT OF POSITION.— 

13 (1) IN GENERAL.—Chapter 4 of title 10, United 

14 States Code, is amended by inserting after section 

15 139b the following new section: 

16 ‘‘§ 139c. Director of Developmental Test and Evalua17 tion 

18 ‘‘(a) There is a Director of Developmental Test and 

19 Evaluation, who shall be appointed by the Secretary of De20 fense from among individuals with an expertise in acquisi21 tion and testing. 

22 ‘‘(b)(1) The Director of Developmental Test and 

23 Evaluation shall be the principal advisor to the Secretary 

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1 sition, Technology, and Logistics on developmental test 

2 and evaluation in the Department of Defense. 

3 ‘‘(2) The Director shall be subject to the supervision 

4 of the Under Secretary of Defense for Acquisition, Tech5 nology, and Logistics and shall report to the Under Sec6 retary. 

7 ‘‘(c) The Director of Developmental Test and Evalua8 tion shall— 

9 ‘‘(1) develop policies and guidance for the devel10 opmental test and evaluation activities of the De11 partment of Defense; 

12 ‘‘(2) monitor and review the developmental test 

13 and evaluation activities of the Department of De14 fense; 

15 ‘‘(3) review and approve the test and evaluation 

16 master plan for each major defense acquisition pro17 gram of the Department of Defense; 

18 ‘‘(4) supervise the activities of the Director of 

19 the Department of Defense Test Resource Manage20 ment Center under section 196 of this title; 

21 ‘‘(5) review the organizations and capabilities of 

22 the military departments with respect to develop23 mental test and evaluation and identify needed 

24 changes or improvements to such organizations and 

25 capabilities; and 


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1 ‘‘(6) perform such other activities relating to 

2 the developmental test and evaluation activities of 

3 the Department of Defense as the Under Secretary 

4 of Defense for Acquisition, Technology, and Logis5 tics may prescribe. 

6 ‘‘(d) The Director of Developmental Test and Eval7 uation shall have access to all records and data of the De8 partment of Defense (including the records and data of 

9 each military department) that the Director considers nec10 essary in order to carry out the Director’s duties under 

11 this section. 

12 ‘‘(e) The Director of Developmental Test and Evalua13 tion shall submit to Congress each year a report on the 

14 developmental test and evaluation activities of the Depart15 ment of Defense during the preceding year.’’. 

16 (2) CLERICAL AMENDMENT.—The table of sec17 tions at the beginning of chapter 4 of such title is 

18 amended by inserting after the item relating to sec19 tion 139b the following new item: 

‘‘139c. Director of Developmental Test and Evaluation.’’. 

20 (3) CONFORMING AMENDMENT.—Section 196(f) 

21 of such title is amended by striking ‘‘the Under Sec22 retary of Defense for Acquisition, Technology, and 

23 Logistics’’ and all that follows and inserting ‘‘the 

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1 nology, and Logistics and the Director of Develop2 mental Test and Evaluation.’’. 

3 (b) REPORTS ON DEVELOPMENTAL TESTING ORGA4 NIZATIONS AND PERSONNEL.— 

5 (1) REPORTS BY SERVICE ACQUISITION EXECU6 TIVES.—Not later than 180 days after the date of 

7 the enactment of this Act, the service acquisition ex8 ecutive of each military department shall submit to 

9 the Director of Developmental Test and Evaluation 

10 a report on the extent to which the test organiza11 tions of such military department have in place, or 

12 have effective plans to develop, adequate numbers of 

13 personnel with appropriate expertise for each pur14 pose as follows: 

15 (A) To ensure that testing requirements 

16 are appropriately addressed in the translation 

17 of operational requirements into contract speci18 fications, in the source selection process, and in 

19 the preparation of requests for proposals on all 

20 major defense acquisition programs. 

21 (B) To participate in the planning of de22 velopmental test and evaluation activities, in23 cluding the preparation and approval of a test 

24 and evaluation master plan for each major de25 fense acquisition program. 


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1 (C) To participate in and oversee the con2 duct of developmental testing, the analysis of 

3 data, and the preparation of evaluations and re4 ports based on such testing. 

5 (2) FIRST ANNUAL REPORT BY DIRECTOR OF

6 DEVELOPMENTAL TEST AND EVALUATION.—The 

7 first annual report submitted to Congress by the Di8 rector of Developmental Test and Evaluation under 

9 section 139c(e) of title 10, United States Code (as 

10 added by subsection (a)), shall be submitted not 

11 later than one year after the date of the enactment 

12 of this Act, and shall include an assessment by the 

13 Director of the reports submitted by the service ac14 quisition executives to the Director under paragraph 

15 (1). 

16 SEC. 103. ASSESSMENT OF TECHNOLOGICAL MATURITY OF 

17 CRITICAL TECHNOLOGIES OF MAJOR DE18 FENSE ACQUISITION PROGRAMS BY THE DI19 RECTOR OF DEFENSE RESEARCH AND ENGI20 NEERING. 

21 (a) ASSESSMENT BY DIRECTOR OF DEFENSE RE22 SEARCH AND ENGINEERING.— 

23 (1) IN GENERAL.—Section 139a of title 10, 

24 United States Code, is amended by adding at the 

25 end the following new subsection: 


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1 ‘‘(c)(1) The Director of Defense Research and Engi2 neering shall periodically review and assess the techno3 logical maturity and integration risk of critical tech4 nologies of the major defense acquisition programs of the 

5 Department of Defense and report on the findings of such 

6 reviews and assessments to the Under Secretary of De7 fense for Acquisition, Technology, and Logistics. 

8 ‘‘(2) The Director shall submit to the Secretary of 

9 Defense and to Congress each year a report on the techno10 logical maturity and integration risk of critical tech11 nologies of the major defense acquisition programs of the 

12 Department of Defense.’’. 

13 (2) FIRST ANNUAL REPORT.—The first annual 

14 report under subsection (c)(2) of section 139a of 

15 title 10, United States Code (as added by paragraph 

16 (1)), shall be submitted to Congress not later than 

17 March 1, 2011, and shall address the results of re18 views and assessments conducted by the Director of 

19 Defense Research and Engineering pursuant to sub20 section (c)(1) of such section (as so added) during 

21 the preceding calendar year. 

22 (b) REPORT ON RESOURCES FOR IMPLEMENTA23 TION.—Not later than 120 days after the date of the en24 actment of this Act, the Director of Defense Research and 

25 Engineering shall submit to the congressional defense 


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1 committees a report describing any additional resources 

2 that may be required by the Director, and by other science 

3 and technology elements of the Department of Defense, 

4 to carry out the following: 

5 (1) The requirements under the amendment 

6 made by subsection (a). 

7 (2) The technological maturity assessments re8 quired by section 2366b(a) of title 10, United States 

9 Code, as amended by section 202 of this Act. 

10 (3) The requirements of Department of Defense 

11 Instruction 5000, as revised. 

12 SEC. 104. DIRECTOR OF INDEPENDENT COST ASSESSMENT. 

13 (a) DIRECTOR OF INDEPENDENT COST ASSESS14 MENT.— 

15 (1) IN GENERAL.—Chapter 4 of title 10, United 

16 States Code, as amended by section 102 of this Act, 

17 is further amended by inserting after section 139c 

18 the following new section: 

19 ‘‘§ 139d. Director of Independent Cost Assessment 

20 ‘‘(a) There is a Director of Independent Cost Assess21 ment in the Department of Defense, appointed by the 

22 President, by and with the advice and consent of the Sen23 ate. The Director shall be appointed without regard to po24 litical affiliation and solely on the basis of fitness to per25 form the duties of the Director. 


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1 ‘‘(b) The Director is the principal advisor to the Sec2 retary of Defense, the Under Secretary of Defense for Ac3 quisition, Technology, and Logistics, and the Under Sec4 retary of Defense (Comptroller) on cost estimation and 

5 cost analyses for the acquisition programs of the Depart6 ment of Defense and the principal cost estimation official 

7 within the senior management of the Department of De8 fense. The Director shall— 

9 ‘‘(1) prescribe, by authority of the Secretary of 

10 Defense, policies and procedures for the conduct of 

11 cost estimation and cost analysis for the acquisition 

12 programs of the Department of Defense; 

13 ‘‘(2) provide guidance to and consult with the 

14 Secretary of Defense, the Under Secretary of De15 fense for Acquisition, Technology, and Logistics, the 

16 Under Secretary of Defense (Comptroller), and the 

17 Secretaries of the military departments with respect 

18 to cost estimation in the Department of Defense in 

19 general and with respect to specific cost estimates 

20 and cost analyses to be conducted in connection with 

21 a major defense acquisition program under chapter 

22 144 of this title or a major automated information 

23 system program under chapter 144A of this title; 

24 ‘‘(3) establish guidance on confidence levels for 

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1 grams and require the disclosure of all such con2 fidence levels; 

3 ‘‘(4) monitor and review all cost estimates and 

4 cost analyses conducted in connection with major de5 fense acquisition programs and major automated in6 formation system programs; and 

7 ‘‘(5) conduct independent cost estimates and 

8 cost analyses for major defense acquisition programs 

9 and major automated information system pro10 grams— 

11 ‘‘(A) in advance of— 

12 ‘‘(i) any certification under section 

13 2366a or 2366b of this title; 

14 ‘‘(ii) any certification under section 

15 2433(e)(2) of this title; and 

16 ‘‘(iii) any report under section 

17 2445c(f) of this title; and 

18 ‘‘(B) whenever necessary to ensure that an 

19 estimate or analysis under paragraph (4) is un20 biased, fair, and reliable. 

21 ‘‘(c)(1) The Director may communicate views on mat22 ters within the responsibility of the Director directly to 

23 the Secretary of Defense and the Deputy Secretary of De24 fense without obtaining the approval or concurrence of any 

25 other official within the Department of Defense. 


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1 ‘‘(2) The Director shall consult closely with, but the 

2 Director and the Director’s staff shall be independent of, 

3 the Under Secretary of Defense for Acquisition, Tech4 nology, and Logistics, the Under Secretary of Defense 

5 (Comptroller), and all other officers and entities of the De6 partment of Defense responsible for acquisition and budg7 eting. 

8 ‘‘(d)(1) The Secretary of a military department shall 

9 report promptly to the Director the results of all cost esti10 mates and cost analyses conducted by the military depart11 ment and all studies conducted by the military department 

12 in connection with cost estimates and cost analyses for 

13 major defense acquisition programs of the military depart14 ment. 

15 ‘‘(2) The Director may make comments on cost esti16 mates and cost analyses conducted by a military depart17 ment for a major defense acquisition program, request 

18 changes in such cost estimates and cost analyses to ensure 

19 that they are fair and reliable, and develop or require the 

20 development of independent cost estimates or cost anal21 yses for such program, as the Director determines to be 

22 appropriate. 

23 ‘‘(3) The Director shall have access to any records 

24 and data in the Department of Defense (including the 

25 records and data of each military department) that the 


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1 Director considers necessary to review in order to carry 

2 out the Director’s duties under this section. 

3 ‘‘(e)(1) The Director shall prepare an annual report 

4 summarizing the cost estimation and cost analysis activi5 ties of the Department of Defense during the previous 

6 year and assessing the progress of the Department in im7 proving the accuracy of its costs estimates and analyses. 

8 ‘‘(2) Each report under this subsection shall be sub9 mitted concurrently to the Secretary of Defense, the 

10 Under Secretary of Defense for Acquisition, Technology, 

11 and Logistics, the Under Secretary of Defense (Comp12 troller), and Congress not later than 10 days after the 

13 transmission of the budget for the next fiscal year under 

14 section 1105 of title 31. The Director shall ensure that 

15 a report submitted under this subsection does not include 

16 any information, such as proprietary or source selection 

17 sensitive information, that could undermine the integrity 

18 of the acquisition process. 

19 ‘‘(3) The Secretary may comment on any report of 

20 the Director to Congress under this subsection. 

21 ‘‘(f) The President shall include in the budget trans22 mitted to Congress pursuant to section 1105 of title 31 

23 for each fiscal year a separate statement of estimated ex24 penditures and proposed appropriations for that fiscal 

25 year for the Director of Independent Cost Assessment in 


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1 carrying out the duties and responsibilities of the Director 

2 under this section. 

3 ‘‘(g) The Secretary of Defense shall ensure that the 

4 Director has sufficient professional staff of military and 

5 civilian personnel to enable the Director to carry out the 

6 duties and responsibilities of the Director under this sec7 tion.’’. 

8 (2) CLERICAL AMENDMENT.—The table of sec9 tions at the beginning of chapter 4 of such title, as 

10 so amended, is further amended by inserting after 

11 the item relating to section 139c the following new 

12 item: 

‘‘139d. Director of Independent Cost Assessment.’’. 

13 (b) REPORT ON MONITORING OF OPERATING AND

14 SUPPORT COSTS FOR MDAPS.— 

15 (1) REPORT TO SECRETARY OF DEFENSE.—Not 

16 later than one year after the date of the enactment 

17 of this Act, the Director of Independent Cost Assess18 ment under section 139d of title 10 United States 

19 Code (as added by subsection (a)), shall review exist20 ing systems and methods of the Department of De21 fense for tracking and assessing operating and sup22 port costs on major defense acquisition programs 

23 and submit to the Secretary of Defense a report on 

24 the finding and recommendations of the Director as 

25 a result of the review. 


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1 (2) TRANSMITTAL TO CONGRESS.—Not later 

2 than 30 days after receiving the report required by 

3 paragraph (1), the Secretary shall transmit the re4 port to the congressional defense committees, to5 gether with any comments on the report the Sec6 retary considers appropriate. 

7 (c) TRANSFER OF PERSONNEL AND FUNCTIONS OF

8 COST ANALYSIS IMPROVEMENT GROUP.—The personnel 

9 and functions of the Cost Analysis Improvement Group 

10 of the Department of Defense are hereby transferred to 

11 the Director of Independent Cost Assessment under sec12 tion 139d of title 10, United States Code (as so added), 

13 and shall report directly to the Director. 

14 (d) CONFORMING AMENDMENTS.— 

15 (1) Section 2306b(i)(1)(B) of title 10, United 

16 States Code, is amended by striking ‘‘Cost Analysis 

17 Improvement Group of the Department of Defense’’ 

18 and inserting ‘‘Director of Independent Cost Assess19 ment’’. 

20 (2) Section 2366a(a)(4) of such title is amend21 ed by striking ‘‘has been submitted’’ and inserting 

22 ‘‘has been approved by the Director of Independent 

23 Cost Assessment’’. 

24 (3) Section 2366b(a)(1)(C) of such title is 

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1 cute’’ and inserting ‘‘have been approved by the Di2 rector of Independent Cost Assessment to provide 

3 for the execution of’’. 

4 (4) Section 2433(e)(2)(B)(iii) of such title is 

5 amended by striking ‘‘are reasonable’’ and inserting 

6 ‘‘have been determined by the Director of Inde7 pendent Cost Assessment to be reasonable’’. 

8 (5) Subparagraph (A) of section 2434(b)(1) of 

9 such title is amended to read as follows: 

10 ‘‘(A) be prepared or approved by the Di11 rector of Independent Cost Assessment; and’’. 

12 (6) Section 2445c(f)(3) of such title is amended 

13 by striking ‘‘are reasonable’’ and inserting ‘‘have 

14 been determined by the Director of Independent 

15 Cost Assessment to be reasonable’’. 

16 SEC. 105. ROLE OF THE COMMANDERS OF THE COMBATANT 

17 COMMANDS IN IDENTIFYING JOINT MILITARY 

18 REQUIREMENTS. 

19 Section 181(d) of title 10, United States Code, is 

20 amended— 

21 (1) by inserting ‘‘(1)’’ before ‘‘The Under Sec22 retary’’; and 

23 (2) by adding at the end the following new 

24 paragraph: 


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1 ‘‘(2) The Council shall seek and consider input from 

2 the commanders of the combatant commands in carrying 

3 out its mission under paragraphs (1) and (2) of subsection 

4 (b) and in conducting periodic reviews in accordance with 

5 the requirements of subsection (e).’’. 

6 TITLE II—ACQUISITION POLICY 

7 SEC. 201. CONSIDERATION OF TRADE-OFFS AMONG COST, 

8 SCHEDULE, AND PERFORMANCE IN THE AC9 QUISITION OF MAJOR WEAPON SYSTEMS. 

10 (a) CONSIDERATION OF TRADE-OFFS.— 

11 (1) IN GENERAL.—The Secretary of Defense 

12 shall develop and implement mechanisms to ensure 

13 that trade-offs between cost, schedule, and perform14 ance are considered as part of the process for devel15 oping requirements for major weapon systems. 

16 (2) ELEMENTS.—The mechanisms required 

17 under this subsection shall ensure, at a minimum, 

18 that— 

19 (A) Department of Defense officials re20 sponsible acquisition, budget, and cost esti21 mating functions are provided an appropriate 

22 opportunity to develop estimates and raise cost 

23 and schedule matters before performance re24 quirements are established for major weapon 

25 systems; and 


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1 (B) consideration is given to fielding major 

2 weapon systems through incremental or spiral 

3 acquisition, while deferring technologies that 

4 are not yet mature, and capabilities that are 

5 likely to significantly increase costs or delay 

6 production, until later increments or spirals. 

7 (3) MAJOR WEAPONS SYSTEM DEFINED.—In 

8 this subsection, the term ‘‘major weapon system’’ 

9 has the meaning given that term in section 2379(d) 

10 of title 10, United States Code. 

11 (b) DUTIES OF JOINT REQUIREMENTS OVERSIGHT

12 COUNCIL.—Section 181(b)(1) of title 10, United States 

13 Code, is amended— 

14 (1) in subparagraph (A), by striking ‘‘and’’ at 

15 the end; 

16 (2) in subparagraph (B), by striking the period 

17 at the end and inserting ‘‘; and’’; and 

18 (3) by adding at the end the following new sub19 paragraph: 

20 ‘‘(C) in ensuring the consideration of 

21 trade-offs among cost, schedule and perform22 ance for joint military requirements;’’. 


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1 SEC. 202. PRELIMINARY DESIGN REVIEW FOR MAJOR DE2 FENSE ACQUISITION PROGRAMS. 

3 Section 2366b(a) of title 10, United States Code, is 

4 amended— 

5 (1) in paragraph (1), by striking ‘‘and’’ at the 

6 end; 

7 (2) by redesignating paragraph (2) as para8 graph (3); 

9 (3) by inserting after paragraph (1) the fol10 lowing new paragraph (2): 

11 ‘‘(2) has received a preliminary design review 

12 (PDR) and conducted a formal post-preliminary de13 sign review assessment, and certifies on the basis of 

14 such assessment that the program demonstrates a 

15 high likelihood of accomplishing its intended mis16 sion; and’’; and 

17 (4) in paragraph (3), as redesignated by para18 graph (2) of this section— 

19 (A) in subparagraph (D), by striking the 

20 semicolon and inserting ‘‘, as determined by the 

21 Milestone Decision Authority on the basis of an 

22 independent review and assessment by the Di23 rector of Defense Research and Engineering; 

24 and’’; 

25 (B) by striking subparagraph (E); and 


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1 (C) by redesignating subparagraph (F) as 

2 subparagraph (E). 

3 SEC. 203. MAXIMIZATION OF COMPETITION THROUGHOUT 

4 THE LIFE CYCLE OF MAJOR DEFENSE ACQUI5 SITION PROGRAMS. 

6 (a) MAXIMIZATION OF COMPETITION.—The Sec7 retary of Defense shall ensure that the acquisition plan 

8 for each major defense acquisition program includes meas9 ures to maximize competition at both the prime contract 

10 level and the subcontract level of such program throughout 

11 the life cycle of such program. 

12 (b) MEASURES TO MAXIMIZE COMPETITION.—The 

13 measures to maximize competition utilized for purposes of 

14 subsection (a) may include, but are not limited to, meas15 ures to achieve the following, where cost-effective: 

16 (1) Competitive prototyping. 

17 (2) Dual-sourcing. 

18 (3) Funding of a second source for interchange19 able, next-generation prototype systems or sub20 systems. 

21 (4) Utilization of modular, open architectures 

22 to enable competition for upgrades. 

23 (5) Periodic competitions for subsystem up24 grades. 

25 (6) Licensing of additional suppliers. 


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1 (7) Requirements for Government oversight or 

2 approval of make or buy decisions to ensure com3 petition at the subsystem level. 

4 (8) Periodic system or program reviews to ad5 dress long-term competitive effects of program deci6 sions. 

7 (9) Consideration of competition at the sub8 contract level and in make or buy decisions as a fac9 tor in proposal evaluations. 

10 (c) COMPETITIVE PROTOTYPING.—The Secretary of 

11 Defense shall modify the acquisition regulations of the De12 partment of Defense to ensure with respect to competitive 

13 prototyping for major defense acquisition programs the 

14 following: 

15 (1) That the acquisition strategy for each major 

16 defense acquisition program provides for two or 

17 more competing teams to produce prototypes before 

18 Milestone B approval (or Key Decision Point B ap19 proval in the case of a space program) unless the 

20 milestone decision authority for such program waives 

21 the requirement on the basis of a determination 

22 that, but for such waiver, the Department would be 

23 unable to meet critical national security objectives. 

24 (2) That if the milestone decision authority 

25 waives the requirement for prototypes produced by 


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1 two or more teams for a major defense acquisition 

2 program under paragraph (1), the acquisition strat3 egy for the program provides for the production of 

4 at least one prototype before Milestone B approval 

5 (or Key Decision Point B approval in the case of a 

6 space program) unless the milestone decision author7 ity waives such requirement on the basis of a deter8 mination that, but for such waiver, the Department 

9 would be unable to meet critical national security ob10 jectives. 

11 (3) That whenever a milestone decision author12 ity authorizes a waiver under paragraph (1) or (2), 

13 the waiver, the determination upon which the waiver 

14 is based, and the reasons for the determination are 

15 submitted in writing to the congressional defense 

16 committees not later than 30 days after the waiver 

17 is authorized. 

18 (d) MAJOR DEFENSE ACQUISITION PROGRAM DE19 FINED.—In this section, the term ‘‘major defense acquisi20 tion program’’ has the meaning given that term in section 

21 2430 of title 10, United States Code. 

22 (e) APPLICABILITY.—This section shall apply to any 

23 acquisition plan for a major defense acquisition program 

24 that is developed or revised on or after the date that is 

25 60 days after the date of the enactment of this Act. 


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1 SEC. 204. CRITICAL COST GROWTH IN MAJOR DEFENSE AC2 QUISITION PROGRAMS. 

3 (a) AUTHORIZED ACTIONS IN EVENT OF CRITICAL

4 COST GROWTH.—Section 2433(e)(2) of title 10, United 

5 States Code, is amended— 

6 (1) by redesignating subparagraph (C) as sub7 paragraph (D); 

8 (2) by striking subparagraph (B); and 

9 (3) by inserting after subparagraph (A) the fol10 lowing new subparagraphs (B) and (C): 

11 ‘‘(B) terminate such acquisition program, un12 less the Secretary determines that the continuation 

13 of such program is essential to the national security 

14 of the United States and submits a written certifi15 cation in accordance with subparagraph (C)(i) ac16 companied by a report setting forth the assessment 

17 carried out pursuant to subparagraph (A) and the 

18 basis for each determination made in accordance 

19 with clauses (I) through (IV) of subparagraph 

20 (C)(i), together with supporting documentation; 

21 ‘‘(C) if the program is not terminated— 

22 ‘‘(i) submit to Congress, before the end of 

23 the 60-day period beginning on the day the Se24 lected Acquisition Report containing the infor25 mation described in subsection (g) is required 


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1 to be submitted under section 2432(f) of this 

2 title, a written certification stating that— 

3 ‘‘(I) such acquisition program is es4 sential to national security; 

5 ‘‘(II) there are no alternatives to such 

6 acquisition program which will provide 

7 equal or greater capability to meet a joint 

8 military requirement (as that term is de9 fined in section 181(g)(1) of this title) at 

10 less cost; 

11 ‘‘(III) the new estimates of the pro12 gram acquisition unit cost or procurement 

13 unit cost were arrived at in accordance 

14 with the requirements of section 139d of 

15 this title and are reasonable; and 

16 ‘‘(IV) the management structure for 

17 the acquisition program is adequate to 

18 manage and control program acquisition 

19 unit cost or procurement unit cost; 

20 ‘‘(ii) rescind the most recent Milestone ap21 proval (or Key Decision Point approval in the 

22 case of a space program) for such program and 

23 withdraw any associated certification under sec24 tion 2366a or 2366b of this title; and 


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1 ‘‘(iii) require a new Milestone approval (or 

2 Key Decision Point approval in the case of a 

3 space program) for such program before enter4 ing into a new contract, exercising an option 

5 under an existing contract, or otherwise extend6 ing the scope of an existing contract under such 

7 program; and’’. 

8 (b) TOTAL EXPENDITURE FOR PROCUREMENT RE9 SULTING IN TREATMENT AS MDAP.—Section 2430(a)(2) 

10 of such title is amended by inserting ‘‘, including all 

11 planned increments or spirals,’’ after ‘‘an eventual total 

12 expenditure for procurement’’. 

13 SEC. 205. ORGANIZATIONAL CONFLICTS OF INTEREST IN 

14 THE ACQUISITION OF MAJOR WEAPON SYS15 TEMS. 

16 (a) REVISED REGULATIONS REQUIRED.—Not later 

17 than 180 days after the date of the enactment of this Act, 

18 the Under Secretary of Defense for Acquisition, Tech19 nology, and Logistics shall revise the Defense Supplement 

20 to the Federal Acquisition Regulation to address organiza21 tional conflicts of interest by contractors in the acquisition 

22 of major weapon systems. 

23 (b) ELEMENTS.—The revised regulations required by 

24 subsection (a) shall, at a minimum— 


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1 (1) ensure that the Department of Defense re2 ceives advice on systems architecture and systems 

3 engineering matters with respect to major weapon 

4 systems from federally funded research and develop5 ment centers or other sources independent of the 

6 prime contractor; 

7 (2) require that a contract for the performance 

8 of systems engineering and technical assistance 

9 (SETA) functions with regard to a major weapon 

10 system contains a provision prohibiting the con11 tractor or any affiliate of the contractor from having 

12 a direct financial interest in the development or con13 struction of the weapon system or any component 

14 thereof; and 

15 (3) provide for fair and objective ‘‘make-buy’’ 

16 decisions by the prime contractor on a major weapon 

17 system by— 

18 (A) requiring prime contractors to give full 

19 and fair consideration to qualified sources other 

20 than the prime contractor for the development 

21 or construction of major subsystems and com22 ponents of the weapon system; 

23 (B) providing for government oversight of 

24 the process by which prime contractors consider 

25 such sources and determine whether to conduct 


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1 such development or construction in-house or 

2 through a subcontract; 

3 (C) where appropriate, requiring that pro4 gram managers, rather than prime contractors, 

5 make the determination whether such develop6 ment or construction should be conducted in7 house or through a subcontract; and 

8 (D) providing for the consideration of 

9 prime contractors ‘‘make-buy’’ decisions in past 

10 performance evaluations. 

11 (c) ORGANIZATIONAL CONFLICT OF INTEREST RE12 VIEW BOARD.— 

13 (1) ESTABLISHMENT REQUIRED.—Not later 

14 than 90 days after the date of the enactment of this 

15 Act, the Secretary of Defense shall establish within 

16 the Department of Defense a board to be known as 

17 the ‘‘Organizational Conflict of Interest Review 

18 Board’’. 

19 (2) DUTIES.—The Board shall have the fol20 lowing duties: 

21 (A) To advise the Under Secretary of De22 fense for Acquisition, Technology, and Logistics 

23 on policies relating to organizational conflicts of 

24 interest in the acquisition of major weapon sys25 tems. 


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1 (B) To advise program managers on steps 

2 to comply with the requirements of the revised 

3 regulations required by this section and to ad4 dress organizational conflicts of interest in the 

5 acquisition of major weapon systems. 

6 (C) To advise appropriate officials of the 

7 Department on organizational conflicts of inter8 est arising in proposed mergers of defense con9 tractors. 

10 (d) MAJOR WEAPON SYSTEM DEFINED.—In this sec11 tion, the term ‘‘major weapon system’’ has the meaning 

12 given that term in section 2379(d) of title 10, United 

13 States Code. 

14 SEC. 206. AWARDS FOR DEPARTMENT OF DEFENSE PER15 SONNEL FOR EXCELLENCE IN THE ACQUISI16 TION OF PRODUCTS AND SERVICES. 

17 (a) IN GENERAL.—Not later than 180 days after the 

18 date of the enactment of this Act, the Secretary of Defense 

19 shall commence carrying out a program to recognize excel20 lent performance by individuals and teams of members of 

21 the Armed Forces and civilian personnel of the Depart22 ment of Defense in the acquisition of products and serv23 ices for the Department of Defense. 

24 (b) ELEMENTS.—The program required by sub25 section (a) shall include the following: 


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1 (1) Procedures for the nomination by the per2 sonnel of the military departments and the Defense 

3 Agencies of individuals and teams of members of the 

4 Armed Forces and civilian personnel of the Depart5 ment of Defense for eligibility for recognition under 

6 the program. 

7 (2) Procedures for the evaluation of nomina8 tions for recognition under the program by one or 

9 more panels of individuals from the government, 

10 academia, and the private sector who have such ex11 pertise, and are appointed in such manner, as the 

12 Secretary shall establish for purposes of the pro13 gram. 

14 (c) AWARD OF CASH BONUSES.—As part of the pro15 gram required by subsection (a), the Secretary may award 

16 to any individual recognized pursuant to the program a 

17 cash bonus authorized by any other provision of law to 

18 the extent that the performance of such individual so rec19 ognized warrants the award of such bonus under such pro20 vision of law. 

Æ 


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