I 

111TH CONGRESS 

1ST SESSION H. R. 2101 

To promote reform and independence in the oversight of weapons system 

acquisition by the Department of Defense. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 27, 2009 

Mr. SKELTON (for himself, Mr. MCHUGH, Mr. ANDREWS, Mr. SPRATT, Mr. 

CONAWAY, Mr. COFFMAN of Colorado, Mr. SESTAK, Mr. BRADY of Pennsylvania, Mr. FORBES, Mrs. TAUSCHER, Mr. SNYDER, Ms. SHEA-PORTER, and Mr. MASSA) introduced the following bill; which was referred 

to the Committee on Armed Services 

A BILL 

To promote reform and independence in the oversight of 

weapons system acquisition by the Department of Defense. 

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 ‘‘Weapons Acquisition System Reform Through Enhanc6 ing Technical Knowledge and Oversight Act of 2009’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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TITLE I—ACQUISITION ORGANIZATION 

Sec. 101. Independent performance of acquisition oversight functions. 

Sec. 102. Oversight of cost estimation. 

Sec. 103. Oversight of systems engineering. 

Sec. 104. Oversight of performance assessment. 

Sec. 105. Assessment of technological maturity of critical technologies of major 

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

Sec. 106. Role of the commanders of the combatant commands in identifying 

joint military requirements. 

TITLE II—ACQUISITION POLICY 

Sec. 201. Acquisition strategies ensuring competition throughout the lifecycle of 

major defense acquisition programs. 

Sec. 202. Additional requirements for certain major defense acquisition programs. 

Sec. 203. Requirement for certification of major systems prior to Milestone B. 

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. 

Sec. 207. Consideration of trade-offs among cost, schedule, and performance in 

the acquisition of major weapon systems. 

1 TITLE I—ACQUISITION 

2 ORGANIZATION 

3 SEC. 101. INDEPENDENT PERFORMANCE OF ACQUISITION 

4 OVERSIGHT FUNCTIONS. 

5 (a) IN GENERAL.—Chapter 4 of title 10, United 

6 States Code, is amended by adding at the end the fol7 lowing new section: 

8 ‘‘§ 145. Principal advisors for acquisition oversight 

9 functions 

10 ‘‘(a) ASSIGNMENT OF ACQUISITION OVERSIGHT

11 FUNCTIONS.—The Secretary of Defense shall designate 

12 an official within the Office of the Secretary of Defense 

13 as the principal advisor to the Secretary for each acquisiVerDate Nov 24 2008 00:51 Apr 29, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2101.IH H2101

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1 tion oversight function specified in subsection (c). An offi2 cial may be designated to perform more than one function. 

3 The performance of duties pursuant to this section shall 

4 not limit or otherwise affect the performance of any other 

5 duties assigned to such official by the Secretary or by 

6 other officers of the Department responsible for the man7 agement and direction of such official except as necessary 

8 to satisfy the requirements of subsection (b). 

9 ‘‘(b) QUALIFICATIONS.—In designating an official for 

10 a function pursuant to subsection (a), the Secretary shall 

11 ensure that the official reports directly to the Secretary 

12 in the performance of such function and is— 

13 ‘‘(1) highly expert in matters relating to the 

14 function; 

15 ‘‘(2) assigned the appropriate staff and re16 sources necessary to carry out the function; 

17 ‘‘(3) independent from those engaged in the 

18 execution of acquisition programs; 

19 ‘‘(4) free of any undue political influence; and 

20 ‘‘(5) free of any personal conflict of interest. 

21 ‘‘(c) ACQUISITION OVERSIGHT FUNCTIONS.—(1) The 

22 acquisition oversight functions to be performed by officials 

23 designated pursuant to paragraph (1) are as follows: 

24 ‘‘(A) Cost estimation. 

25 ‘‘(B) Systems engineering. 


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1 ‘‘(C) Performance assessment. 

2 ‘‘(D) Such other acquisition functions as the 

3 Secretary considers appropriate. 

4 ‘‘(2) Each acquisition oversight function specified in 

5 paragraph (1) shall cover all phases of an acquisition pro6 gram, including setting of requirements, formulation and 

7 execution of budgets, and program execution.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sections 

9 at the beginning of such chapter is amended by adding 

10 at the end the following new item: 

‘‘145. Principal advisors for acquisition oversight functions.’’. 

11 SEC. 102. OVERSIGHT OF COST ESTIMATION. 

12 (a) IN GENERAL.—Chapter 137 of title 10, United 

13 States Code, is amended by adding at the end the fol14 lowing new section: 

15 ‘‘§ 2334. Acquisition oversight: oversight of cost esti16 mation 

17 ‘‘(a) ISSUANCE OF POLICIES, PROCEDURES, GUID18 ANCE, AND COST ESTIMATES.—The official assigned over19 sight of cost estimation pursuant to section 145 of this 

20 title shall issue the following: 

21 ‘‘(1) Policies and procedures governing the con22 duct of cost estimation and cost analysis generally 

23 for the acquisition programs of the Department of 

24 Defense. 


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1 ‘‘(2) Guidance relating to cost estimates and 

2 cost analyses conducted in connection with major de3 fense acquisition programs under chapter 144 of this 

4 title or major automated information system pro5 grams under chapter 144A of this title. 

6 ‘‘(3) Guidance relating to the proper selection 

7 of confidence levels for cost estimates generally, and 

8 specifically, for the proper selection of confidence 

9 levels for cost estimates for major defense acquisi10 tion programs under chapter 144 of this title or 

11 major automated information system program under 

12 chapter 144A of this title. 

13 ‘‘(4) Independent cost estimates and cost anal14 yses for major defense acquisition programs and 

15 major automated information system programs for 

16 which the Under Secretary of Defense for Acquisi17 tion, Technology, and Logistics is the Milestone De18 cision Authority— 

19 ‘‘(A) in advance of— 

20 ‘‘(i) any certification under section 

21 2366a or 2366b of title 10, United States 

22 Code; 

23 ‘‘(ii) any decision to enter into low24 rate initial production or full-rate produc25 tion; 


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1 ‘‘(iii) any certification under section 

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

3 ‘‘(iv) any report under section 

4 2445c(f) of this title; and 

5 ‘‘(B) at any other time considered nec6 essary by such official or upon the request of 

7 the Under Secretary of Defense for Acquisition, 

8 Technology, and Logistics. 

9 ‘‘(b) REVIEW OF COST ESTIMATES, COST ANALYSES, 

10 COST INDEXES, AND RECORDS OF THE MILITARY DE11 PARTMENTS.—The official designated for oversight of cost 

12 estimation pursuant to section 145 of this title is author13 ized— 

14 ‘‘(1) to promptly receive the results of all cost 

15 estimates and cost analyses conducted by the mili16 tary departments, and all studies conducted by the 

17 military departments in connection with such cost 

18 estimates and cost analyses, for major defense acqui19 sition programs and major automated information 

20 systems of the military departments, and to com21 ment on such estimates, analyses, and studies; and 

22 ‘‘(2) to have timely access to any records and 

23 data in the Department of Defense (including the 

24 records and data of each military department and 

25 including classified and proprietary information as 


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1 appropriate) that the official considers necessary to 

2 review in order to carry out any duties under this 

3 section. 

4 ‘‘(c) PARTICIPATION, CONCURRENCE, AND APPROVAL

5 IN COST ESTIMATION.—The official designated for over6 sight of cost estimation pursuant to section 145 of this 

7 title is authorized to be involved in all discussions relating 

8 to cost estimation and the estimation of resource levels 

9 required for major defense acquisition programs and 

10 major automated information systems of the Department 

11 of Defense generally at all stages of such programs and 

12 may— 

13 ‘‘(1) participate in the formulation of study 

14 guidance for analyses of alternatives for major de15 fense acquisition programs; 

16 ‘‘(2) participate in the discussion of any dis17 crepancies between an independent cost estimate and 

18 the cost estimate of a military department for a 

19 major defense acquisition program or major auto20 mated information system of the Department of De21 fense; 

22 ‘‘(3) approve or disapprove, at such official’s 

23 sole discretion, the confidence level for any cost esti24 mate of a major defense acquisition program or 

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1 ment of Defense used at any of the events specified 

2 in paragraph (4) of subsection (a) of this section; 

3 ‘‘(4) concur in the choice of a cost estimate for 

4 use at any of the events specified in paragraph (4) 

5 of subsection (a) of this section; and 

6 ‘‘(5) participate in any decision to request au7 thorization of a multiyear procurement contract for 

8 a major defense acquisition program. 

9 ‘‘(d) RELATIONSHIP TO COST ANALYSIS IMPROVE10 MENT GROUP.—The official designated to perform over11 sight of cost estimation pursuant to section 145 of this 

12 title shall be assigned responsibility for the management 

13 and oversight of the Cost Analysis Improvement Group 

14 of the Department of Defense. 

15 ‘‘(e) ANNUAL REPORT.—Not later than March 1 of 

16 each year, beginning on March 1, 2010, the official des17 ignated to perform oversight of cost estimation pursuant 

18 to section 145 of this title shall submit to the congres19 sional defense committees a report on the activities under20 taken pursuant to this section during the preceding year.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections 

22 at the beginning of such chapter is amended by adding 

23 at the end the following new item: 

‘‘2334. Acquisition oversight: oversight of cost estimation.’’. 


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1 SEC. 103. OVERSIGHT OF SYSTEMS ENGINEERING. 

2 (a) IN GENERAL.—Chapter 137 of title 10, United 

3 States Code, as amended by section 102, is further amend4 ed by adding at the end the following new section: 

5 ‘‘§ 2334a. Acquisition oversight: oversight of systems 

6 engineering 

7 ‘‘(a) ISSUANCE OF POLICIES, PROCEDURES, AND

8 GUIDANCE.—The official designated to perform oversight 

9 of systems engineering pursuant to section 145 of this title 

10 shall— 

11 ‘‘(1) issue policies, procedures, and guidance for 

12 all elements of the Department of Defense con13 cerning— 

14 ‘‘(A) the use of systems engineering prin15 ciples and best practices, generally; 

16 ‘‘(B) the use of systems engineering ap17 proaches to enhance reliability, availability, and 

18 maintainability on major defense acquisition 

19 programs; 

20 ‘‘(C) the development of systems engineer21 ing master plans for major defense acquisition 

22 programs; 

23 ‘‘(D) the inclusion of provisions relating to 

24 systems engineering and reliability growth in 

25 requests for proposals; 


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1 ‘‘(E) developmental test and evaluation 

2 generally; 

3 ‘‘(F) in coordination with the Director of 

4 Operational Test and Evaluation, the integra5 tion of developmental test and evaluation with 

6 operational test and evaluation; 

7 ‘‘(G) in coordination with the Director of 

8 Operational Test and Evaluation, the develop9 ment of test and evaluation master plans for 

10 major defense acquisition programs; and 

11 ‘‘(H) the use of developmental test and 

12 evaluation as part of a coordinated systems en13 gineering approach to system development; and 

14 ‘‘(2) provide advocacy, oversight, and direction 

15 to elements of the acquisition workforce responsible 

16 for systems engineering and developmental test and 

17 evaluation functions. 

18 ‘‘(b) PARTICIPATION IN REQUIREMENTS DISCUS19 SIONS.—The official designated to perform oversight of 

20 systems engineering pursuant to section 145 of this title 

21 shall provide input on the inclusion of systems engineering 

22 requirements in the process for consideration of joint mili23 tary requirements by the Joint Requirements Oversight 

24 Council pursuant to section 181 of title 10, United States 


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1 Code, including specific input relating to each capabilities 

2 development document. 

3 ‘‘(c) ACCESS TO RECORDS OF THE MILITARY DE4 PARTMENTS.—The official designated to perform over5 sight of systems engineering pursuant to section 145 of 

6 this title shall have access to any records or data of the 

7 Department of Defense (including the records and data 

8 of each military department and including classified and 

9 proprietary information as appropriate) that the official 

10 considers necessary to review in order to carry out any 

11 duties under this section. 

12 ‘‘(d) ASSESSMENT OF MILITARY DEPARTMENT CA13 PABILITIES FOR SYSTEMS ENGINEERING AND DEVELOP14 MENTAL TEST AND EVALUATION.—The official des15 ignated to perform oversight of systems engineering pur16 suant to section 145 of this title shall periodically assess 

17 the capabilities of the military departments for systems 

18 engineering and developmental test and evaluation and 

19 provide such assessment, along with such recommenda20 tions for improvement as the official considers necessary, 

21 to the Secretary of Defense and the Under Secretary of 

22 Defense for Acquisition, Technology, and Logistics. 

23 ‘‘(e) REVIEW AND APPROVAL OF PLANS FOR MAJOR

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1 suant to section 145 of this title shall review and approve 

2 the following plans with respect to any major defense ac3 quisition program: 

4 ‘‘(1) The systems engineering master plan. 

5 ‘‘(2) The developmental test and evaluation 

6 plan within the test and evaluation master plan. 

7 ‘‘(f) ANNUAL REPORT.—Not later than March 1 of 

8 each year, beginning on March 1, 2010, the official des9 ignated to perform oversight of systems engineering pur10 suant to section 145 of this title shall submit to the con11 gressional defense committees a report on the activities 

12 undertaken pursuant to this section during the preceding 

13 year.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections 

15 at the beginning of such chapter, as amended by section 

16 102, is further amended by adding at the end the following 

17 new item: 

‘‘2334a. Acquisition oversight: oversight of systems engineering.’’. 

18 SEC. 104. OVERSIGHT OF PERFORMANCE ASSESSMENT. 

19 (a) IN GENERAL.—Chapter 137 of title 10, United 

20 States Code, as amended by section 103, is further amend21 ed by adding at the end the following new section: 

22 ‘‘§ 2334b. Acquisition oversight: oversight of perform23 ance assessment 

24 ‘‘(a) ISSUANCE OF POLICIES, PROCEDURES, AND

25 GUIDANCE FOR PERFORMANCE ASSESSMENTS.—The offiVerDate Nov 24 2008 00:51 Apr 29, 2009 Jkt 079200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2101.IH H2101

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1 cial designated to perform oversight of performance as2 sessment pursuant to section 145 of this title shall be re3 sponsible for the issuance of policies, procedures, and 

4 guidance governing the conduct of performance assess5 ments for the acquisition programs of the Department of 

6 Defense, including assessment of the extent to which ac7 quisition programs— 

8 ‘‘(1) deliver sufficient capability to the 

9 warfighter; 

10 ‘‘(2) achieve timely delivery of such capability; 

11 and 

12 ‘‘(3) deliver a level of value consistent with re13 sources expended. 

14 ‘‘(b) ASSESSMENT OF BASELINE QUALITY.—The of15 ficial designated to perform oversight of performance as16 sessment pursuant to section 145 of this title shall periodi17 cally assess the suitability of the baseline descriptions re18 quired by section 2435 of title 10, United States Code, 

19 of major defense acquisition programs for providing a 

20 basis for performance assessment and make such rec21 ommendations to the Secretary of Defense and the Under 

22 Secretary of Defense for Acquisition, Technology, and Lo23 gistics as the official considers necessary to improve the 

24 suitability of baseline descriptions for such purpose. 


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1 ‘‘(c) EARNED VALUE MANAGEMENT SYSTEM.—The 

2 official designated to perform oversight of performance as3 sessment pursuant to section 145 of this title shall be re4 sponsible for the management and oversight of the records 

5 of the earned value management system of the Depart6 ment of Defense. 

7 ‘‘(d) PARTICIPATION IN CERTAIN PROGRAM RE8 VIEW.—The official designated to perform oversight of 

9 performance assessment pursuant to section 145 of this 

10 title is authorized to present an assessment of the per11 formance of a major defense acquisition program during— 

12 ‘‘(1) any discussions prior to certification under 

13 section 2433(e)(2) of this title; 

14 ‘‘(2) any discussions prior to entry into full-rate 

15 production; and 

16 ‘‘(3) consideration of any decision to request 

17 authorization of a multiyear procurement contract 

18 for a major defense acquisition program. 

19 ‘‘(e) ANNUAL REPORT.—Not later than March 1 of 

20 each year, beginning on March 1, 2010, the official des21 ignated to perform oversight of performance assessment 

22 pursuant to section 145 of this title shall submit to the 

23 congressional defense committees a report on the activities 

24 undertaken pursuant to this section during the preceding 

25 year.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of such chapter, as amended by section 

3 103, is further amended by adding at the end the following 

4 new item: 

‘‘2334b. Acquisition oversight: oversight of performance assessment.’’. 

5 SEC. 105. ASSESSMENT OF TECHNOLOGICAL MATURITY OF 

6 CRITICAL TECHNOLOGIES OF MAJOR DE7 FENSE ACQUISITION PROGRAMS BY THE DI8 RECTOR OF DEFENSE RESEARCH AND ENGI9 NEERING. 

10 (a) ASSESSMENT BY DIRECTOR OF DEFENSE RE11 SEARCH AND ENGINEERING.— 

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

13 United States Code, is amended by adding at the 

14 end the following new subsection: 

15 ‘‘(c)(1) The Director of Defense Research and Engi16 neering shall periodically review and assess the techno17 logical maturity and integration risk of critical tech18 nologies of the major defense acquisition programs of the 

19 Department of Defense and report on the findings of such 

20 reviews and assessments to the Under Secretary of De21 fense for Acquisition, Technology, and Logistics. 

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

23 Defense and to the congressional defense committees by 

24 January 1 of each year a report on the technological matu25 rity and integration risk of critical technologies of the 


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1 major defense acquisition programs of the Department of 

2 Defense.’’. 

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

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

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

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

7 March 1, 2011, and shall address the results of re8 views and assessments conducted by the Director of 

9 Defense Research and Engineering pursuant to sub10 section (c)(1) of such section (as so added) during 

11 the preceding calendar year. 

12 (b) REPORT ON RESOURCES FOR IMPLEMENTA13 TION.—Not later than 120 days after the date of the en14 actment of this Act, the Director of Defense Research and 

15 Engineering shall submit to the congressional defense 

16 committees a report describing any additional resources 

17 that may be required by the Director, and by other re18 search and engineering elements of the Department of De19 fense, to carry out the following: 

20 (1) The requirements under the amendment 

21 made by subsection (a)(1). 

22 (2) The technological maturity assessments re23 quired by section 2366b(a) of title 10, United States 

24 Code. 


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1 (3) The requirements of Department of Defense 

2 Instruction 5000, as revised. 

3 SEC. 106. ROLE OF THE COMMANDERS OF THE COMBATANT 

4 COMMANDS IN IDENTIFYING JOINT MILITARY 

5 REQUIREMENTS. 

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

7 amended— 

8 (1) by inserting ‘‘(1)’’ before ‘‘The Under Sec9 retary’’; and 

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

11 paragraph: 

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

13 the commanders of the combatant commands in carrying 

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

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

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

17 TITLE II—ACQUISITION POLICY 

18 SEC. 201. ACQUISITION STRATEGIES ENSURING COMPETI19 TION THROUGHOUT THE LIFECYCLE OF 

20 MAJOR DEFENSE ACQUISITION PROGRAMS. 

21 (a) ACQUISITION STRATEGY ENSURING COMPETI22 TION.—The Secretary of Defense shall ensure that the ac23 quisition strategy for each major defense acquisition pro24 gram includes measures to ensure competition, or the op25 tion of competition, at both the prime contract level and 


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1 the subcontract level of such program throughout the life2 cycle of such program as a means to improve contractor 

3 performance. 

4 (b) MEASURES TO ENSURE COMPETITION.—The 

5 measures to ensure competition, or the option of competi6 tion, for purposes of subsection (a) may include measures 

7 to achieve the following, in appropriate cases if such meas8 ures are cost-effective: 

9 (1) Competitive prototyping. 

10 (2) Dual-sourcing. 

11 (3) Funding of a second source for interchange12 able, next-generation prototype systems or sub13 systems. 

14 (4) Use of modular, open architectures to en15 able competition for upgrades. 

16 (5) Use of build-to-print approaches to enable 

17 production through multiple sources. 

18 (6) Acquisition of complete technical data pack19 ages. 

20 (7) Periodic competitions for subsystem up21 grades. 

22 (8) Licensing of additional suppliers. 

23 (9) Periodic system or program reviews to ad24 dress long-term competitive effects of program deci25 sions. 


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1 SEC. 202. ADDITIONAL REQUIREMENTS FOR CERTAIN 

2 MAJOR DEFENSE ACQUISITION PROGRAMS. 

3 (a) ADDITIONAL REQUIREMENTS RELATING TO

4 MILESTONE B APPROVAL.—Section 2366b of title 10, 

5 United States Code, is amended— 

6 (1) in subsection (d)— 

7 (A) by inserting ‘‘(1)’’ before ‘‘The Mile8 stone Decision Authority may’’; and 

9 (B) by striking the second sentence and in10 serting the following: 

11 ‘‘(2) Whenever the Milestone Decision Authority 

12 makes such a determination and authorizes such a waiv13 er— 

14 ‘‘(A) the waiver, the determination, and the 

15 reasons for the determination shall be submitted in 

16 writing to the congressional defense committees 

17 within 30 days after the waiver is authorized; and 

18 ‘‘(B) the Milestone Decision Authority shall re19 view the program not less often than annually to de20 termine the extent to which such program currently 

21 satisfies the certification components specified in 

22 paragraphs (1) and (2) of subsection (a) until such 

23 time as the Milestone Decision Authority determines 

24 that the program satisfies all such certification com25 ponents.’’; 


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1 (2) by redesignating subsections (e) and (f) as 

2 subsections (f) and (g), respectively, and inserting 

3 after subsection (d) the following new subsection (e): 

4 ‘‘(e) DESIGNATION OF CERTIFICATION STATUS IN

5 BUDGET DOCUMENTATION.—Any budget request, budget 

6 justification material, budget display, reprogramming re7 quest, Selected Acquisition Report, or other budget docu8 mentation or performance report submitted by the Sec9 retary of Defense to the President regarding a major de10 fense acquisition program receiving a waiver pursuant to 

11 subsection (d) shall prominently and clearly indicate that 

12 such program has not fully satisfied the certification re13 quirements of this section until such time as the Milestone 

14 Decision Authority makes the determination that such 

15 program has satisfied all certification components pursu16 ant to subsection (d)(2)(B).’’; 

17 (3) in subsection (a)— 

18 (A) in paragraph (1), by striking ‘‘and’’ at 

19 the end; 

20 (B) by redesignating paragraph (2) as 

21 paragraph (3); 

22 (C) by inserting after paragraph (1) the 

23 following new paragraph (2): 

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

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1 view assessment, and certifies on the basis of such 

2 assessment that the program demonstrates a high 

3 likelihood of accomplishing its intended mission; 

4 and’’; and 

5 (D) in paragraph (3), as redesignated by 

6 subparagraph (B) of this paragraph— 

7 (i) in subparagraph (D), by striking 

8 the semicolon and inserting ‘‘, as deter9 mined by the Milestone Decision Authority 

10 on the basis of an independent review and 

11 assessment by the Director of Defense Re12 search and Engineering; and’’; 

13 (ii) by striking subparagraph (E); and 

14 (iii) by redesignating subparagraph 

15 (F) as subparagraph (E). 

16 (b) CERTIFICATION AND REVIEW OF PROGRAMS EN17 TERING DEVELOPMENT PRIOR TO ENACTMENT OF SEC18 TION 2366b OF TITLE 10.— 

19 (1) DETERMINATION.—(A) Except as provided 

20 in subparagraph (B), beginning not later than 270 

21 days after the date of the enactment of this Act, for 

22 each major defense acquisition program that has not 

23 received a Milestone C approval, or Key Decision 

24 Point C approval in the case of a space program, the 

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1 er or not the program satisfies the certification com2 ponents specified in paragraphs (1) and (2) of sub3 section (a) of section 2366b of title 10, United 

4 States Code. 

5 (B) Subparagraph (A) shall not apply to a 

6 major defense acquisition program that has been re7 viewed pursuant to section 2366b, title 10, United 

8 States Code, prior to the date that is 270 days after 

9 the date of the enactment of this Act. 

10 (2) ANNUAL REVIEW.—The Milestone Decision 

11 Authority shall review any program determined pur12 suant to paragraph (1) not to satisfy the certifi13 cation components of subsection (a) of section 2366b 

14 of title 10, United States Code, not less often than 

15 annually thereafter to determine the extent to which 

16 such program currently satisfies the certification 

17 components specified in paragraphs (1) and (2) of 

18 subsection (a) of such section until such time as the 

19 Milestone Decision Authority determines that the 

20 program satisfies all such certification components. 

21 (3) DESIGNATION OF CERTIFICATION STATUS

22 IN BUDGET DOCUMENTATION.—Any budget request, 

23 budget justification material, budget display, re24 programming request, Selected Acquisition Report, 

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1 port submitted by the Secretary of Defense to the 

2 President regarding a major defense acquisition pro3 gram which the Milestone Decision Authority deter4 mines under paragraph (1) does not satisfy the cer5 tification components specified in paragraphs (1) 

6 and (2) of subsection (a) of section 2366b of title 

7 10, United States Code, shall prominently and clear8 ly indicate that such program has not fully satisfied 

9 such certification components until such time as the 

10 Milestone Decision Authority makes the determina11 tion that such program has satisfied all certification 

12 components pursuant to paragraph (2). 

13 (c) REVIEWS OF PROGRAMS RESTRUCTURED AFTER

14 EXPERIENCING CRITICAL COST GROWTH.—The official 

15 designated to perform oversight of performance assess16 ment pursuant to section 145 of title 10, United States 

17 Code, as added by this Act, shall annually review each 

18 major defense acquisition program that has been consid19 ered pursuant to paragraph (2) of section 2433(e) of title 

20 10, United States Code, and which has been certified as 

21 necessary to continue pursuant to such paragraph, to as22 sess the success of the program in achieving adequate pro23 gram performance after the completion of such consider24 ation. The results of reviews performed pursuant to this 


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1 subsection shall be included in the next annual report of 

2 such official. 

3 SEC. 203. REQUIREMENT FOR CERTIFICATION OF MAJOR 

4 SYSTEMS PRIOR TO MILESTONE B. 

5 (a) CERTIFICATION.—Except as provided in sub6 section (b), beginning not later than 270 days after the 

7 date of the enactment of this Act, for each major defense 

8 acquisition program that has not received Milestone B ap9 proval, or Key Decision Point B approval in the case of 

10 a space program, the Milestone Decision Authority shall 

11 certify, after consultation with the Joint Requirements 

12 Oversight Council on matters relating to program require13 ments and military needs— 

14 (1) that the program fulfills an approved initial 

15 capabilities document; 

16 (2) that the program is being executed by an 

17 entity with a relevant core competency as identified 

18 by the Secretary of Defense under section 118b of 

19 title 10, United States Code; 

20 (3) if the program duplicates a capability al21 ready provided by an existing program, the duplica22 tion provided by such program is necessary and ap23 propriate; 

24 (4) that a cost estimate for the development of 

25 such program has been submitted to the Milestone 


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1 Decision Authority and that the concurrence of the 

2 official designated to perform oversight of cost esti3 mation pursuant to section 145 of title 10, United 

4 States Code, has been obtained regarding the choice 

5 of a cost estimate; and 

6 (5) that a schedule identifying the time and 

7 major activities required to reach Milestone B ap8 proval, or Key Decision Point B approval in the case 

9 of a space program, has been submitted to the Mile10 stone Decision Authority. 

11 (b) EXCEPTION.—Subsection (a) shall not apply to 

12 a major defense acquisition program that has received a 

13 certification as required by section 2366a, title 10, United 

14 States Code. 

15 (c) REPORTS.— 

16 (1) RELATING TO COST GROWTH OR SCHEDULE

17 DELAY OF PROGRAMS CERTIFIED UNDER SUB18 SECTION (a).—With respect to a major defense ac19 quisition program certified by the Milestone Decision 

20 Authority under subsection (a), the Milestone Deci21 sion Authority shall submit to the congressional de22 fense committees a report in accordance with this 

23 subsection if, prior to Milestone B approval— 

24 (A) the projected development cost of the 

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1 gram submitted to the Milestone Decision Au2 thority in accordance with subsection (a)(4) by 

3 more than 25 percent; or 

4 (B) the schedule submitted to the Mile5 stone Decision Authority in accordance with 

6 subsection (a)(5) is delayed by more than 25 

7 percent. 

8 (2) RELATING TO COST GROWTH OF PROGRAMS

9 CERTIFIED UNDER SECTION 2366a.—With respect to 

10 a major defense acquisition program certified by the 

11 Milestone Decision Authority under section 2366a of 

12 title 10, United States Code, the Milestone Decision 

13 Authority shall submit to the congressional defense 

14 committees a report in accordance with this sub15 section if the program manager submits a notifica16 tion to the Milestone Decision Authority pursuant to 

17 section 2366a(b). 

18 (3) MATTERS COVERED.—Any report submitted 

19 pursuant to paragraph (1) or (2) shall— 

20 (A) identify the root causes of the cost or 

21 schedule growth; 

22 (B) identify appropriate acquisition per23 formance measures for the remainder of the de24 velopment of the program; and 

25 (C) include one of the following: 


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1 (i) A written certification (with a sup2 porting explanation) stating that— 

3 (I) such program is essential to 

4 national security; 

5 (II) there are no alternatives to 

6 such program that will provide accept7 able military capability at less cost; 

8 (III) new estimates of the devel9 opment cost or schedule, as appro10 priate, are reasonable; and 

11 (IV) the management structure 

12 for the program is adequate to man13 age and control program development 

14 cost and schedule. 

15 (ii) A plan for terminating the devel16 opment of the program or withdrawal of 

17 Milestone A approval (or Key Decision 

18 Point A approval in the case of a space 

19 program) if the Milestone Decision Author20 ity determines that such action is in the in21 terest of national defense. 

22 (4) TIME OF SUBMISSION.—A report required 

23 by this subsection shall be submitted— 

24 (A) in the case of a report required by 

25 paragraph (1), not later than 30 days after the 


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1 Milestone Decision Authority determines the 

2 cost growth or schedule delay described in that 

3 paragraph; and 

4 (B) in the case of a report required by 

5 paragraph (2), not later than 30 days after the 

6 Milestone Decision Authority receives the notifi7 cation from the program manager described in 

8 that paragraph. 

9 (d) DEFINITIONS.—In this section: 

10 (1) MAJOR DEFENSE ACQUISITION PROGRAM.— 

11 The term ‘‘major defense acquisition program’’ has 

12 the meaning provided in section 2430 of title 10, 

13 United States Code. 

14 (2) INITIAL CAPABILITIES DOCUMENT.—The 

15 term ‘‘initial capabilities document’’ has the meaning 

16 provided by section 2366a (c)(2) of such title. 

17 (3) ENTITY.—The term ‘‘entity’’ has the mean18 ing provided by section 2366a(c)(4) of such title. 

19 (4) MILESTONE B APPROVAL.—The term ‘‘Mile20 stone B approval’’ has the meaning provided by sec21 tion 2366(e)(7) of such title. 


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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.—Paragraph (2) of section 2433(e) of title 

5 10, United States Code, is amended to read as follows: 

6 ‘‘(2)(A) If the program acquisition unit cost or pro7 curement unit cost of a major defense acquisition program 

8 or designated major subprogram (as determined by the 

9 Secretary under subsection (d)) increases by a percentage 

10 equal to or greater than the critical cost growth threshold 

11 for the program or subprogram, the Secretary of Defense, 

12 after consultation with the Joint Requirements Oversight 

13 Council regarding program requirements, shall— 

14 ‘‘(i) determine the root cause or causes of the 

15 critical cost growth including the role, if any, of— 

16 ‘‘(I) changes or growth in requirements; 

17 ‘‘(II) unrealistic baseline estimates; 

18 ‘‘(III) any design, engineering, manufac19 turing, or technology integration issues; 

20 ‘‘(IV) changes in procurement quantities; 

21 ‘‘(V) inadequate program funding or fund22 ing instability; 

23 ‘‘(VI) poor performance by government or 

24 contractor personnel responsible for program 

25 management; or 


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1 ‘‘(VII) other causes as identified by the 

2 Secretary; 

3 ‘‘(ii) subject to subparagraph (B), determine 

4 whether to terminate such program or to restructure 

5 such program after assessing— 

6 ‘‘(I) the root causes of cost growth identi7 fied pursuant to subparagraph (A); 

8 ‘‘(II) the validity and urgency of the joint 

9 military requirement; 

10 ‘‘(III) the viability of the acquisition strat11 egy; 

12 ‘‘(IV) the quality of program management; 

13 or 

14 ‘‘(V) a broad range of potential material 

15 and non-material alternatives to such program; 

16 ‘‘(iii) submit the determination made under 

17 clause (ii) to Congress, before the end of the 60-day 

18 period beginning on the day the Selected Acquisition 

19 Report containing the information described in sub20 section (g) is required to be submitted under section 

21 2432(f) of this title; and 

22 ‘‘(iv) if a report under paragraph (1) has been 

23 previously submitted to Congress with respect to 

24 such program or subprogram for the current fiscal 

25 year but was based upon a different unit cost report 


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1 from the program manager to the service acquisition 

2 executive designated by the Secretary concerned, 

3 submit a further report containing the information 

4 described in subsection (g), determined from the 

5 time of the previous report to the time of the cur6 rent report. 

7 ‘‘(B) A program may be restructured pursuant to a 

8 determination under subparagraph (A)(ii) only if— 

9 ‘‘(i) a written certification (with a supporting 

10 explanation) is submitted along with the determina11 tion stating that— 

12 ‘‘(I) such program is essential to national 

13 security; 

14 ‘‘(II) there are no alternatives to such pro15 gram which will provide acceptable military ca16 pability at less cost; 

17 ‘‘(III) new estimates of the program acqui18 sition unit cost or procurement unit cost are 

19 reasonable; and 

20 ‘‘(IV) the management structure for the 

21 program is adequate to manage and control 

22 program acquisition unit cost or procurement 

23 unit cost; and 


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1 ‘‘(ii) the most recent milestone decision is revis2 ited and results in the approval of such restructured 

3 program.’’. 

4 (b) TOTAL EXPENDITURE FOR PROCUREMENT RE5 SULTING IN TREATMENT AS MAJOR DEFENSE ACQUISI6 TION PROGRAM.—Section 2430(a)(2) of such title is 

7 amended by inserting ‘‘, including all planned increments 

8 or spirals,’’ after ‘‘an eventual total expenditure for pro9 curement’’. 

10 (c) CONFORMING AMENDMENTS.—Section 

11 2433(e)(3) of such title is amended— 

12 (1) in subparagraph (A), by striking ‘‘or 

13 (2)(B)’’ and inserting ‘‘or (2)(A)(iii)’’; and 

14 (2) in subparagraph (B)— 

15 (A) by striking ‘‘or (2)(B)’’ and inserting 

16 ‘‘or (2)(A)(iii)’’; and 

17 (B) by striking ‘‘paragraph (2)(A)’’ and 

18 inserting ‘‘paragraph (2)(B)’’. 

19 SEC. 205. ORGANIZATIONAL CONFLICTS OF INTEREST IN 

20 THE ACQUISITION OF MAJOR WEAPON SYS21 TEMS. 

22 (a) REQUIREMENT FOR PANEL TO PRESENT REC23 OMMENDATIONS.—Not later than one year after the date 

24 of the enactment of this Act, the Panel on Contracting 

25 Integrity established pursuant to section 813 of the John 


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1 Warner National Defense Authorization Act for Fiscal 

2 Year 2007 (Public Law 109–364; 120 Stat. 2320) shall 

3 present recommendations to the Secretary of Defense on 

4 measures to eliminate or mitigate organizational conflicts 

5 of interest in the acquisition of major weapons systems. 

6 (b) REVISED REGULATIONS REQUIRED.—Not later 

7 than 180 days after receiving recommendations pursuant 

8 to subsection (a), the Secretary of Defense shall revise the 

9 Defense Supplement to the Federal Acquisition Regula10 tion to address organizational conflicts of interest by con11 tractors in the acquisition of major weapon systems. 

12 (c) EXTENSION OF PANEL ON CONTRACTING INTEG13 RITY.—Subsection (e) of section 813 of the John Warner 

14 National Defense Authorization Act (Public Law 109– 

15 364; 120 Stat. 2321) is amended to read as follows: 

16 ‘‘(e) TERMINATION.—(1) Subject to the restriction in 

17 paragraph (2), the panel shall continue to serve until the 

18 date that is 18 months after the date on which the Sec19 retary of Defense notifies the congressional defense com20 mittees of an intention to terminate the panel based on 

21 a determination that the activities of the panel no longer 

22 justify its continuation and that concerns about con23 tracting integrity have been fully mitigated. 

24 ‘‘(2) The panel shall continue to serve at least until 

25 December 31, 2011.’’. 


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1 SEC. 206. AWARDS FOR DEPARTMENT OF DEFENSE PER2 SONNEL FOR EXCELLENCE IN THE ACQUISI3 TION OF PRODUCTS AND SERVICES. 

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

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

6 shall commence carrying out a program to recognize excel7 lent performance by individuals and teams of members of 

8 the Armed Forces and civilian personnel of the Depart9 ment of Defense in the acquisition of products and serv10 ices for the Department of Defense. 

11 (b) ELEMENTS.—The program required by sub12 section (a) shall include the following: 

13 (1) Procedures for the nomination by the per14 sonnel of the military departments and the Defense 

15 Agencies of individuals and teams of members of the 

16 Armed Forces and civilian personnel of the Depart17 ment of Defense for eligibility for recognition under 

18 the program. 

19 (2) Procedures for the evaluation of nomina20 tions for recognition under the program by one or 

21 more panels of individuals from the Government, 

22 academia, and the private sector who have such ex23 pertise, and are appointed in such manner, as the 

24 Secretary shall establish for purposes of the pro25 gram. 


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1 (c) AWARD OF CASH BONUSES.—As part of the pro2 gram required by subsection (a), the Secretary may award 

3 to any individual recognized pursuant to the program a 

4 cash bonus authorized by any other provision of law to 

5 the extent that the performance of such individual so rec6 ognized warrants the award of such bonus under such pro7 vision of law. 

8 SEC. 207. CONSIDERATION OF TRADE-OFFS AMONG COST, 

9 SCHEDULE, AND PERFORMANCE IN THE AC10 QUISITION OF MAJOR WEAPON SYSTEMS. 

11 (a) REVIEW OF MECHANISMS FOR CONSIDERING

12 TRADE-OFFS.—The Comptroller General shall review the 

13 use by the Department of Defense of certain mechanisms 

14 for considering trade-offs among cost, schedule, and per15 formance in the acquisition of major weapon systems. 

16 (b) MECHANISMS INCLUDED.—The mechanisms re17 viewed pursuant to subsection (a) shall include— 

18 (1) the Tri-Chair Committee, as defined in sec19 tion 817 of the National Defense Authorization Act 

20 for Fiscal Year 2008 (Public Law 110–181; 122 

21 Stat. 225); 

22 (2) Configuration Steering Boards as estab23 lished pursuant to section 814 of the Duncan 

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1 cal Year 2009 (Public Law 110–417; 122 Stat. 

2 4528); and 

3 (3) any other mechanisms identified as allowing 

4 for the consideration of trade-offs in the report on 

5 investment strategies for major defense acquisition 

6 programs required by section 817 of the National 

7 Defense Authorization Act for Fiscal Year 2008 

8 (Public Law 110–181). 

9 (c) ASSESSMENT OF MECHANISMS.—The review shall 

10 describe and evaluate the effectiveness of the mechanisms 

11 identified in subsection (b). 

12 (d) REPORT.—Not later than one year after the date 

13 of the enactment of this Act, the Comptroller General shall 

14 submit to the congressional defense committees a report 

15 on the review and assessment performed pursuant to this 

16 section. The report shall include such recommendations as 

17 the Comptroller General considers appropriate on the mat18 ters reviewed, including recommendations to improve the 

19 effectiveness of the mechanisms included in the report. 

Æ 


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