I 

114TH CONGRESS 

2D SESSION H. R. 4741 

To amend title 10, United States Code, to provide for modular open system 

architecture in major defense acquisition programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 15, 2016 

Mr. THORNBERRY introduced the following bill; which was referred to the 

Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to provide for modular open system architecture in major defense acquisition programs, 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 ‘‘Acquisition Agility Act’’. 

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. Modular open system architecture in development of major weapon systems. 

Sec. 3. Weapon system component development, prototyping, and deployment. 

Sec. 4. Cost, schedule, and performance of major defense acquisition programs. 


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Sec. 5. Transparency in major defense acquisition programs. 

Sec. 6. Amendments relating to technical data rights. 

1 SEC. 2. MODULAR OPEN SYSTEM ARCHITECTURE IN DE2 VELOPMENT OF MAJOR WEAPON SYSTEMS. 

3 (a) IN GENERAL.—Part IV of subtitle A of title 10, 

4 United States Code, is amended by inserting after chapter 

5 144A the following new chapter: 

6 ‘‘CHAPTER 144B—WEAPON SYSTEMS 

7 DEVELOPMENT AND RELATED MATTERS 

‘‘Subchapter Sec. 

‘‘I. Modular Open System Architecture in Development 

of Weapon Systems ................................................ 2446a 

‘‘II. Weapon System Component Development, Prototyping, and Deployment ...................................... 2447a 

‘‘III. Cost, Schedule, and Performance of Major Defense 

Acquisition Programs .......................................... 2448a 

8 ‘‘SUBCHAPTER I—MODULAR OPEN SYSTEM AR9 CHITECTURE IN DEVELOPMENT OF WEAP10 ON SYSTEMS 

‘‘Sec. 

‘‘2446a. Requirement for modular open system architecture in major defense 

acquisition programs; definitions. 

‘‘2446b. Requirement to address modular open system architecture in program 

capabilities development and acquisition weapon system design. 

‘‘2446c. Requirements relating to availability of major system interfaces and 

support for modular open system architecture. 

‘‘2446d. Requirement to include modular open system architecture in Selected 

Acquisition Reports. 

11 ‘‘§ 2446a. Requirement for modular open system ar12 chitecture in major defense acquisition 

13 programs; definitions 

14 ‘‘(a) MODULAR OPEN SYSTEM ARCHITECTURE RE15 QUIREMENT.—A major defense acquisition program initi16 ated after October 1, 2018, shall be designed and develVerDate Sep 11 2014 02:11 Mar 16, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4741.IH H4741

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1 oped with a modular open system architecture to enable 

2 incremental development. 

3 ‘‘(b) DEFINITIONS.—In this chapter: 

4 ‘‘(1) The term ‘modular open system architec5 ture’ means, with respect to a major defense acquisi6 tion program, an integrated business and technical 

7 strategy that— 

8 ‘‘(A) employs a modular design and uses, 

9 if available and suitable, widely supported and 

10 consensus-based standards for major system 

11 interfaces between the major system platform 

12 being developed under the program and its 

13 major system components; 

14 ‘‘(B) is subjected to testing to ensure 

15 major system interfaces comply with widely 

16 supported and consensus-based standards; and 

17 ‘‘(C) uses a system architecture that allows 

18 major system components to be incrementally 

19 added, removed, or replaced throughout the life 

20 cycle of the major system platform to afford op21 portunities for enhanced competition and inno22 vation while yielding— 

23 ‘‘(i) significant cost savings or avoid24 ance; 

25 ‘‘(ii) schedule reduction; or 


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1 ‘‘(iii) increased interoperability. 

2 ‘‘(2) The term ‘major system platform’ means 

3 the structure of a major weapon system on which a 

4 major system component can be mounted or inte5 grated. 

6 ‘‘(3) The term ‘major system component’— 

7 ‘‘(A) means a subsystem or assembly that 

8 can be mounted or installed on a major system 

9 platform through well-defined, open major sys10 tem interfaces; and 

11 ‘‘(B) includes a subsystem or assembly 

12 that is likely to have additional capability re13 quirements, is likely to change because of evolv14 ing technology or threat, is needed for inter15 operability, facilitates incremental deployment 

16 of capabilities, or is expected to be replaced. 

17 ‘‘(4) The term ‘major system interface’ means 

18 a shared boundary between a major system platform 

19 and its major system components, defined by various 

20 characteristics pertaining to— 

21 ‘‘(A) physical standards for mounting 

22 major system components; 

23 ‘‘(B) functional standards for integrating 

24 major system components, such as electrical, 

25 radio frequency, data, or software elements; and 


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1 ‘‘(C) open intellectual property rights con2 sistent with section 2320 of this title. 

3 ‘‘(5) The term ‘program capability document’ 

4 means, with respect to a major defense acquisition 

5 program, a document that specifies capability re6 quirements for the program, such as a capability de7 velopment document or a capability production docu8 ment. 

9 ‘‘(6) The terms ‘program cost target’ and ‘field10 ing target’ have the meanings provided in section 

11 2448a(a) of this title. 

12 ‘‘(7) The term ‘major defense acquisition pro13 gram’ has the meaning provided in section 2430 of 

14 this title. 

15 ‘‘(8) The term ‘major weapon system’ has the 

16 meaning provided in section 2379(f) of this title. 

17 ‘‘§ 2446b. Requirement to address modular open sys18 tem architecture in program capabilities 

19 development and acquisition weapon sys20 tem design 

21 ‘‘(a) PROGRAM CAPABILITY DOCUMENT.—A program 

22 capability document for a major defense acquisition pro23 gram shall identify and characterize— 

24 ‘‘(1) the extent to which requirements for sys25 tem performance are likely to evolve during the life 


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1 cycle of the system because of evolving technology, 

2 threat, or interoperability needs; and 

3 ‘‘(2) for requirements that are expected to 

4 evolve, the minimum acceptable capability that will 

5 be available upon initial operating capability of the 

6 major defense acquisition program. 

7 ‘‘(b) ANALYSIS OF ALTERNATIVES.—The Director of 

8 Cost Assessment and Performance Evaluation, in formu9 lating study guidance for analyses of alternatives for 

10 major defense acquisition programs and performing such 

11 analyses under section 139a(d)(4) of this title, shall en12 sure that any such analysis for a major defense acquisition 

13 program includes consideration of an incremental develop14 ment approach and modular open system architecture. 

15 ‘‘(c) ACQUISITION STRATEGY.—An acquisition strat16 egy for a major defense acquisition program, as required 

17 under section 2431a of this title, shall— 

18 ‘‘(1) clearly describe the modular open system 

19 architecture to be used for the program; 

20 ‘‘(2) differentiate between the major system 

21 platform and major system components being devel22 oped under the program; 

23 ‘‘(3) clearly describe the incremental approach 

24 to major system components that are anticipated to 

25 meet requirements for system performance; 


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1 ‘‘(4) identify additional major system compo2 nents that may be added later in the life cycle of the 

3 major system platform; and 

4 ‘‘(5) clearly describe how intellectual property 

5 and related issues, such as data deliverables and li6 cense rights, that are necessary to support a mod7 ular open system architecture will be addressed. 

8 ‘‘(d) REQUEST FOR PROPOSALS.—The milestone de9 cision authority for a major defense acquisition program 

10 shall ensure that a request for proposals for the develop11 ment or production phases of the program shall address 

12 the modular open system architecture to be used. 

13 ‘‘(e) MILESTONE B.—A major defense acquisition 

14 program may not receive Milestone B approval under sec15 tion 2366b of this title until the milestone decision author16 ity determines in writing that— 

17 ‘‘(1) the program incorporates a modular open 

18 system architecture with clearly defined major sys19 tem interfaces between the major system platform 

20 and major system components to be developed under 

21 the program; 

22 ‘‘(2) such major system interfaces are con23 sistent with the widely supported and consensus24 based standards that exist at the time of the mile25 stone decision, unless such standards are unavailable 


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1 or unsuitable for particular major system interfaces; 

2 and 

3 ‘‘(3) the Government has arranged to obtain 

4 appropriate and necessary intellectual property 

5 rights with respect to such major system interfaces 

6 upon completion of the development of the major 

7 system platform. 

8 ‘‘§ 2446c. Requirements relating to availability of 

9 major system interfaces and support for 

10 modular open system architecture 

11 ‘‘The Secretary of each military department shall— 

12 ‘‘(1) coordinate with the other military depart13 ments, the defense agencies, defense and other pri14 vate sector entities, and national standards-setting 

15 organizations with respect to the identification, de16 velopment, and maintenance of major system inter17 faces and standards for use in major system plat18 forms, where practicable; 

19 ‘‘(2) ensure that major system interfaces incor20 porate commercial standards to the maximum extent 

21 practicable; 

22 ‘‘(3) ensure sufficient systems engineering and 

23 development expertise and resources are available to 

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1 quirements development and acquisition program 

2 planning; 

3 ‘‘(4) ensure that necessary planning, program4 ming, and budgeting resources are provided to iden5 tify, develop, and maintain modular open system ar6 chitecture and associated major system interfaces; 

7 and 

8 ‘‘(5) ensure adequate training in modular open 

9 system architecture is provided to members of the 

10 requirements and acquisition workforce. 

11 ‘‘§ 2446d. Requirement to include modular open sys12 tem architecture in Selected Acquisition 

13 Reports 

14 ‘‘For each major defense acquisition program that re15 ceives Milestone B approval after October 1, 2018, a de16 scription of the key elements of the modular open system 

17 architecture or, if a modular open system architecture was 

18 not used, the rationale for not using such an architecture, 

19 shall be submitted to the congressional defense committees 

20 with the first Selected Acquisition Report required under 

21 section 2432 of this title for the program.’’. 

22 (b) CLERICAL AMENDMENT.—The table of chapters 

23 for title 10, United States Code, is amended by adding 

24 after the item relating to chapter 144A the following new 

25 item: 


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‘‘144B. Weapon Systems Development and Related Matters ..............................................................................2446a’’. 

1 (c) CONFORMING AMENDMENT.—Section 

2 2366b(a)(3) of such title is amended— 

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (K); and 

5 (2) by inserting after subparagraph (L) the fol6 lowing new subparagraph: 

7 ‘‘(M) the requirements of section 2446b(e) 

8 of this title are met; and’’. 

9 (d) EFFECTIVE DATE.—Subchapter I of chapter 

10 144B of title 10, United States Code, as added by sub11 section (a), shall take effect on October 1, 2016. 

12 SEC. 3. WEAPON SYSTEM COMPONENT DEVELOPMENT, 

13 PROTOTYPING, AND DEPLOYMENT. 

14 (a) IN GENERAL.—Chapter 144B of title 10, United 

15 States Code, as added by section 2, is further amended 

16 by adding at the end the following new subchapter: 

17 ‘‘SUBCHAPTER II—WEAPON SYSTEM COMPO18 NENT DEVELOPMENT, PROTOTYPING, AND 

19 DEPLOYMENT 

‘‘Sec. 

‘‘2447a. Technology development in the acquisition of major weapon systems. 

‘‘2447b. Weapon system component prototype projects: display of budget information. 

‘‘2447c. Weapon system component prototype projects: oversight. 

‘‘2447d. Requirements and limitations for weapon system component prototype 

projects. 

‘‘2447e. Mechanisms to speed deployment of successful weapon system component prototypes. 

‘‘2447f. Definition of weapon system component. 


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1 ‘‘§ 2447a. Technology development in the acquisition 

2 of major weapon systems 

3 ‘‘Technology shall be developed in a major defense 

4 acquisition program that is initiated after October 1, 

5 2018, only if the milestone decision authority for the pro6 gram determines with a high degree of confidence that 

7 such development will not delay the fielding target of the 

8 program. If the milestone decision authority does not 

9 make such determination for a major system component 

10 being developed under the program, the milestone decision 

11 authority shall ensure that technology related to the major 

12 system component shall be sufficiently matured separate 

13 from the major defense acquisition program using the 

14 prototyping authorities of this section or other authorities, 

15 as appropriate. 

16 ‘‘§ 2447b. Weapon system component prototype 

17 projects: display of budget information 

18 ‘‘(a) REQUIREMENTS FOR BUDGET DISPLAY.—In the 

19 defense budget materials for any fiscal year after fiscal 

20 year 2017, the Secretary of Defense shall, with respect 

21 to advanced component development and prototype activi22 ties (within the research, development, test, and evaluation 

23 budget), set forth separately the amounts requested for 

24 each of the following: 

25 ‘‘(1) Acquisition programs of record. 


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1 ‘‘(2) Experimentation and rapid prototyping of 

2 weapon system components or other technologies 

3 and subsystems. 

4 ‘‘(3) Other budget line items as determined by 

5 the Secretary of Defense. 

6 ‘‘(b) ADDITIONAL REQUIREMENTS.—For purposes of 

7 subsection (a)(2), the amounts requested for experimen8 tation and rapid prototyping of weapon system compo9 nents or other technologies and subsystems shall be— 

10 ‘‘(1) displayed in separate budget lines struc11 tured into either capability or weapon system compo12 nent portfolios that reflect the priority areas for pro13 totype projects; and 

14 ‘‘(2) justified with general descriptions of the 

15 types of capability areas and technologies being 

16 funded or expected to be funded during the fiscal 

17 year concerned. 

18 ‘‘(c) DEFINITIONS.—In this section, the terms ‘budg19 et’ and ‘defense budget materials’ have the meaning given 

20 those terms in section 234 of this title. 

21 ‘‘§ 2447c. Weapon system component prototype 

22 projects: oversight 

23 ‘‘(a) ESTABLISHMENT.—The Secretary of each mili24 tary department shall establish or appoint an oversight 

25 board or similar group of senior advisors for managing 


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1 prototype projects for weapon system components and 

2 other technologies and subsystems, including the use of 

3 funds for such projects, within the military department 

4 concerned. 

5 ‘‘(b) MEMBERSHIP.—Each oversight board shall be 

6 comprised of senior officials with— 

7 ‘‘(1) expertise in requirements; research, devel8 opment, test, and evaluation; acquisition; or other 

9 relevant areas within the military department con10 cerned; and 

11 ‘‘(2) awareness of the component capability re12 quirements of major weapon systems, including 

13 scheduling and fielding goals for such component ca14 pabilities. 

15 ‘‘(c) FUNCTIONS.—The functions of each oversight 

16 board are as follows: 

17 ‘‘(1) To issue a strategic plan every three years 

18 that prioritizes the capability and weapon system 

19 component portfolio areas for conducting prototype 

20 projects, based on assessments of high priority 

21 warfighter needs, capability gaps on existing major 

22 weapon systems, opportunities to incrementally inte23 grate new components into major weapon systems, 

24 and technologies that are expected to be sufficiently 

25 mature to prototype within 3 years. 


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1 ‘‘(2) To annually recommend funding levels for 

2 weapon system component prototype projects across 

3 capability or weapon system component portfolios. 

4 ‘‘(3) To annually recommend to the service ac5 quisition executive of the military department con6 cerned specific weapon system component prototype 

7 projects, subject to the requirements and limitations 

8 in section 2447d of this title. 

9 ‘‘(4) To ensure projects are managed by experts 

10 within the Department of Defense who are knowl11 edgeable in research, development, test, and evalua12 tion and who are aware of opportunities for incre13 mental deployment of component capabilities to 

14 major weapon systems. 

15 ‘‘(5) To ensure projects are conducted in a 

16 manner that allows for appropriate experimentation 

17 and technology risk. 

18 ‘‘(6) To ensure necessary technical, contracting, 

19 and financial management resources are available to 

20 support each project. 

21 ‘‘(7) To submit to the congressional defense 

22 committees a semiannual notification that includes 

23 the following: 

24 ‘‘(A) A description of each weapon system 

25 component prototype project initiated during 


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1 the preceding six months, including an expla2 nation of each project and its required funding. 

3 ‘‘(B) A description of the results achieved 

4 from weapon system component prototype 

5 projects completed and tested during the pre6 ceding six months. 

7 ‘‘§ 2447d. Requirements and limitations for weapon 

8 system component prototype projects 

9 ‘‘(a) LIMITATION ON PROTOTYPE PROJECT DURA10 TION.—A prototype project shall be completed within 

11 three years of its initiation. 

12 ‘‘(b) MERIT-BASED SELECTION PROCESS.—A proto13 type project shall be selected by the service acquisition ex14 ecutive of the military department concerned through a 

15 merit-based selection process that identifies the most 

16 promising and cost-effective prototypes that address a 

17 high priority warfighter need and are expected to be suc18 cessfully demonstrated in a relevant environment. 

19 ‘‘(c) TYPE OF TRANSACTION.—Prototype projects 

20 shall be funded through contracts, cooperative agree21 ments, or other transactions. 

22 ‘‘(d) FUNDING LIMIT.—(1) Each prototype project 

23 may not exceed a total amount of $5,000,000 (based on 

24 fiscal year 2017 constant dollars), unless— 


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1 ‘‘(A) the Secretary of the military department, 

2 or the Secretary’s designee, approves a larger 

3 amount of funding for the project, not to exceed 

4 $25,000,000; and 

5 ‘‘(B) the Secretary, or the Secretary’s designee, 

6 submits to the congressional defense committees, 

7 within 30 days after approval of such funding for 

8 the project, a notification that includes— 

9 ‘‘(i) a description of the project; 

10 ‘‘(ii) expected funding for the project; and 

11 ‘‘(iii) a statement of the anticipated out12 come of the project. 

13 ‘‘(2) The Secretary of Defense may adjust the 

14 amounts (and the base fiscal year) provided in paragraph 

15 (1) on the basis of Department of Defense escalation 

16 rates. 

17 ‘‘§ 2447e. Mechanisms to speed deployment of suc18 cessful weapon system component proto19 types 

20 ‘‘(a) SELECTION OF PROTOTYPE PROJECT FOR PRO21 DUCTION.—A weapon system component or technology 

22 prototype project may be selected by the service acquisi23 tion executive of the military department concerned for a 

24 follow-on production contract or other transaction without 


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1 the use of competitive procedures, notwithstanding the re2 quirements of section 2304 of this title, if— 

3 ‘‘(1) a prototype project addresses a high pri4 ority warfighter need; 

5 ‘‘(2) competitive procedures were used for the 

6 selection of parties for participation in the prototype 

7 project; 

8 ‘‘(3) the participants in the project successfully 

9 completed the project provided for in the trans10 action; and 

11 ‘‘(4) the prototype was demonstrated in a rel12 evant environment. 

13 ‘‘(b) SPECIAL TRANSFER AUTHORITY.—(1) The Sec14 retary of a military department may transfer funds that 

15 remain available for obligation in procurement appropria16 tion accounts of the military department to fund the low17 rate initial production of a prototype until required fund18 ing for full-rate production can be submitted and approved 

19 through the regular budget process of the Department of 

20 Defense. 

21 ‘‘(2) The funds transferred under this subsection to 

22 be used for production of a prototype shall be for a period 

23 not to exceed two years, the amount for such period may 

24 not exceed $10,000,000, and the special transfer authority 


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1 provided in this subsection may not be used more than 

2 once to fund procurement of a particular prototype. 

3 ‘‘(3) The special transfer authority provided in this 

4 subsection is in addition to any other transfer authority 

5 available to the Department of Defense. 

6 ‘‘(c) NOTIFICATION TO CONGRESS.—Within 30 days 

7 after the service acquisition executive of a military depart8 ment selects a weapon system component or technology 

9 prototype project for a follow-on production contract or 

10 other transaction, the service acquisition executive shall 

11 notify the congressional defense committees of the selec12 tion. 

13 ‘‘§ 2447f. Definition of weapon system component 

14 ‘‘In this subchapter, the term ‘weapon system compo15 nent’ has the meaning provided the term ‘major system 

16 component’ in section 2446a of this title.’’. 

17 (b) EFFECTIVE DATE.—Subchapter II of chapter 

18 144B of title 10, United States Code, as added by sub19 section (a), shall take effect on October 1, 2016. 

20 SEC. 4. COST, SCHEDULE, AND PERFORMANCE OF MAJOR 

21 DEFENSE ACQUISITION PROGRAMS. 

22 (a) IN GENERAL.—Chapter 144B of title 10, United 

23 States Code, as added by section 2, is amended by adding 

24 at the end the following new subchapter: 


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1 ‘‘SUBCHAPTER III—COST, SCHEDULE, AND PER2 FORMANCE OF MAJOR DEFENSE ACQUISI3 TION PROGRAMS 

‘‘Sec. 

‘‘2448a. Program cost and fielding targets in planning major defense acquisition programs. 

‘‘2448b. Independent technical risk assessments. 

‘‘2448c. Adherence to requirements and thresholds in major defense acquisition 

programs. 

4 ‘‘§ 2448a. Program cost and fielding targets in plan5 ning major defense acquisition programs 

6 ‘‘(a) PROGRAM COST AND FIELDING TARGETS.—Be7 fore Milestone A approval is granted for a major defense 

8 acquisition program, the Secretary of Defense shall ensure 

9 the program will be affordable and fielded when needed 

10 by establishing targets for— 

11 ‘‘(1) the program acquisition unit cost (referred 

12 to in this section as the ‘program cost target’; and 

13 ‘‘(2) the date for initial operational capability 

14 (referred to in this section as the ‘fielding target’). 

15 ‘‘(b) CONSIDERATIONS.—In establishing targets 

16 under subsection (a) for the program, the Secretary of De17 fense shall consider each of the following: 

18 ‘‘(1) The capability needs and timeframe speci19 fied in the initial capabilities document, opportuni20 ties for incremental deployment of capabilities, and 

21 minimum acceptable capability increments. 


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1 ‘‘(2) Resources available to fund the develop2 ment, production, and life cycle of the program, 

3 using a reasonable estimate of future defense budg4 ets. 

5 ‘‘(3) Procurement quantity objectives. 

6 ‘‘(4) Trade-offs among cost, schedule, technical 

7 risk, and performance objectives identified in the 

8 analysis of alternatives required under section 2366a 

9 of this title. 

10 ‘‘(5) The independent cost estimate prepared or 

11 approved under section 2334(a)(6) of this title. 

12 ‘‘(6) The independent technical risk assessment 

13 conducted or approved under section 2448b of this 

14 title. 

15 ‘‘(c) DELEGATION.—The responsibilities of the Sec16 retary of Defense in subsection (a) may be delegated only 

17 to the Deputy Secretary of Defense or the Under Sec18 retary of Defense for Acquisition, Technology, and Logis19 tics. 

20 ‘‘(d) DEFINITIONS.—In this section: 

21 ‘‘(1) The term ‘program acquisition unit cost’ 

22 has the meaning provided in section 2432(a) of this 

23 title. 


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1 ‘‘(2) The term ‘initial capabilities document’ 

2 has the meaning provided in section 2366a(d)(2) of 

3 this title. 

4 ‘‘§ 2448b. Independent technical risk assessments 

5 ‘‘(a) IN GENERAL.—The Under Secretary of Defense 

6 for Acquisition, Technology, and Logistics shall conduct 

7 or approve an independent technical risk assessment for 

8 a major defense acquisition program— 

9 ‘‘(1) before any decision to grant milestone ap10 proval pursuant to section 2366a or 2366b of this 

11 title; 

12 ‘‘(2) before any decision to enter into low-rate 

13 initial production or full-rate production; and 

14 ‘‘(3) at any other time considered appropriate 

15 by the Under Secretary. 

16 ‘‘(b) CATEGORIZATION OF TECHNICAL RISK LEV17 ELS.—The Under Secretary shall issue guidance and a 

18 framework for categorizing the degree of technical risk in 

19 a major defense acquisition program and a major auto20 mated information system. 

21 ‘‘§ 2448c. Adherence to requirements and thresholds 

22 in major defense acquisition programs 

23 ‘‘(a) CAPABILITIES DETERMINATION.—The Sec24 retary of the military department concerned shall ensure 

25 that the capability development document supporting a 


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1 Milestone A or subsequent milestone for a major defense 

2 acquisition program may not be submitted to the Joint 

3 Requirements Oversight Council for approval until the 

4 Chief of the armed force concerned determines in writing 

5 that the requirements in the document are necessary and 

6 realistic in relation to the program cost and fielding tar7 gets established under section 2448a(a) of this title. 

8 ‘‘(b) COMPLIANCE WITH TARGETS BEFORE MILE9 STONE B APPROVAL.—A major defense acquisition pro10 gram may not receive Milestone B approval until the mile11 stone decision authority for the program determines in 

12 writing that the estimated program acquisition unit cost 

13 and the estimated date for initial operational capability 

14 for the baseline description for the program (established 

15 under section 2435) do not exceed the program cost and 

16 fielding targets established under section 2448a(a) of this 

17 title. If such estimated cost is higher than the program 

18 cost target or if such estimated date is later than the field19 ing target, the milestone decision authority may request 

20 that the Secretary of Defense increase the program cost 

21 target or delay the fielding target, as applicable.’’. 

22 (b) EFFECTIVE DATE.—Subchapter III of chapter 

23 144B of title 10, United States Code, as added by sub24 section (a), shall apply with respect to major defense acVerDate Sep 11 2014 02:11 Mar 16, 2016 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H4741.IH H4741

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1 quisition programs that reach Milestone A after October 

2 1, 2016. 

3 (c) MODIFICATION OF MILESTONE DECISION AU4 THORITY.—Effective October 1, 2016, subsection (d) of 

5 section 2430 of title 10, United States Code, as added by 

6 section 825(a) of the National Defense Authorization Act 

7 for Fiscal Year 2016 (Public Law 114–92; 129 Stat. 907), 

8 is amended— 

9 (1) in paragraph (2)(A), by inserting ‘‘subject 

10 to paragraph (5),’’ before ‘‘the Secretary deter11 mines’’; and 

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

13 paragraph: 

14 ‘‘(5) The authority of the Secretary of Defense to 

15 designate an alternative milestone decision authority for 

16 a program with respect to which the Secretary determines 

17 that the program is addressing a joint requirement, as set 

18 forth in paragraph (2)(A), shall apply only for a major 

19 defense acquisition program that reaches Milestone A 

20 after October 1, 2016, and before October 1, 2019.’’. 

21 SEC. 5. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION 

22 PROGRAMS. 

23 (a) REPORTS ON MILESTONE DECISION METRICS.— 

24 Subchapter III of chapter 144B of title 10, United States 


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1 Code, as added by section 2, is amended by adding at the 

2 end the following new section: 

3 ‘‘§ 2448d. Reports on milestone decision metrics 

4 ‘‘(a) REPORT ON MILESTONE A.—Not later than 15 

5 days after granting Milestone A approval for a major de6 fense acquisition program, the milestone decision author7 ity for the program shall provide to the congressional de8 fense committees a brief summary report that contains the 

9 following: 

10 ‘‘(1) The program cost and fielding targets es11 tablished by the Secretary of Defense under section 

12 2448a(a) of this title. 

13 ‘‘(2) The cost and schedule estimates for the 

14 program conducted by the military department con15 cerned. 

16 ‘‘(3) The independent cost estimate for the pro17 gram conducted or approved under section 

18 2334(a)(6) of this title, and any independent sched19 ule estimate conducted for the program. 

20 ‘‘(4) A summary of the technical risks associ21 ated with the program, as determined by the mili22 tary department concerned. 

23 ‘‘(5) A summary of the independent technical 

24 risk assessment conducted or approved under section 

25 2448b of this title. 


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1 ‘‘(6) A summary of the sufficiency review con2 ducted by the Director of Cost Assessment and Pro3 gram Evaluation of the analysis of alternatives per4 formed for the program (as referred to in section 

5 2366a(b)(6) of this title). 

6 ‘‘(7) Any other information the milestone deci7 sion authority considers relevant. 

8 ‘‘(b) REPORT ON MILESTONE B.—Not later than 15 

9 days after granting Milestone B approval for a major de10 fense acquisition program, the milestone decision author11 ity for the program shall provide to the congressional de12 fense committees a brief summary report that contains the 

13 following: 

14 ‘‘(1) The program cost and fielding targets es15 tablished by the Secretary of Defense under section 

16 2448a(a) of this title. 

17 ‘‘(2) The cost and schedule estimates for the 

18 program conducted by the military department con19 cerned. 

20 ‘‘(3) The independent cost estimate for the pro21 gram conducted or approved under section 

22 2334(a)(6) of this title, and any independent sched23 ule estimate conducted for the program. 

24 ‘‘(4) The cost and schedule estimates approved 

25 for the program by the milestone decision authority. 


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1 ‘‘(5) A summary of the technical risks associ2 ated with the program, as determined by the mili3 tary department concerned. 

4 ‘‘(6) A summary of the independent technical 

5 risk assessment conducted or approved under section 

6 2448b of this title. 

7 ‘‘(7) A list of critical technologies, if any, asso8 ciated with the program, that have not been success9 fully tested in a relevant environment. 

10 ‘‘(8) A statement of whether the preliminary 

11 design review for the program (referred to in section 

12 2366b(a)(1) of this title) has been completed. 

13 ‘‘(9) A statement of whether a modular open 

14 system architecture is being used for the program. 

15 ‘‘(10) Any other information the milestone deci16 sion authority considers relevant. 

17 ‘‘(c) REPORT ON MILESTONE C.—Not later than 15 

18 days after granting Milestone C approval for a major de19 fense acquisition program, the milestone decision author20 ity for the program shall provide to the congressional de21 fense committees a brief summary report that contains the 

22 following: 

23 ‘‘(1) The cost and schedule estimates for the 

24 program conducted by the military department con25 cerned. 


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1 ‘‘(2) The independent cost estimate for the pro2 gram conducted or approved under section 

3 2334(a)(6) of this title, and any independent sched4 ule estimate conducted for the program. 

5 ‘‘(3) The cost and schedule estimates approved 

6 by the milestone decision authority for the program. 

7 ‘‘(4) A summary of the production, manufac8 turing, and fielding risks associated with the pro9 gram. 

10 ‘‘(d) ADDITIONAL INFORMATION.—At the request of 

11 any of the congressional defense committees, the milestone 

12 decision authority shall submit to the committee further 

13 information or underlying documentation for the informa14 tion in a report submitted under subsection (a), (b), or 

15 (c), including the independent cost and schedule estimates 

16 and the independent technical risk assessments referred 

17 to in those subsections.’’. 

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

19 at the beginning of such subchapter is amended by adding 

20 at the end the following new item: 

‘‘2448d. Reports on milestone decision metrics.’’. 

21 SEC. 6. AMENDMENTS RELATING TO TECHNICAL DATA 

22 RIGHTS. 

23 (a) RIGHTS RELATING TO ITEM OR PROCESS DEVEL24 OPED EXCLUSIVELY AT PRIVATE EXPENSE.— 


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1 (1) Subsection (a)(2)(C) of section 2320 of title 

2 10, United States Code, is amended— 

3 (A) by striking clause (ii) and inserting the 

4 following: 

5 ‘‘(ii) relates to form, fit, function, or the 

6 external interface of an item or process with 

7 other items or processes, including any major 

8 system interface of a major system component 

9 with a major system platform or other major 

10 system component;’’; and 

11 (B) in clause (iii), by inserting after ‘‘or 

12 process data’’ the following: ‘‘, including data 

13 pertaining to a major system component’’. 

14 (2) Subsection (a)(2)(D)(i) of such section is 

15 amended— 

16 (A) by inserting ‘‘or’’ at the end of sub17 clause (I); 

18 (B) by striking subclause (II); and 

19 (C) by redesignating subclause (III) as 

20 subclause (II). 

21 (b) RIGHTS RELATING TO ITEM OR PROCESS DEVEL22 OPED IN PART WITH FEDERAL FUNDS AND IN PART AT

23 PRIVATE EXPENSE.—Subsection (a)(2) of section 2320 of 

24 such title is further amended— 


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1 (1) by redesignating subparagraphs (F) and 

2 (G) as subparagraphs (G) and (H), respectively; 

3 (2) in subparagraph (E), by striking ‘‘In the 

4 case of’’ and inserting ‘‘Except as provided in sub5 paragraph (F), in the case of’’; and 

6 (3) by inserting after subparagraph (E) the fol7 lowing new subparagraph (F): 

8 ‘‘(F) Notwithstanding subparagraph (E), in the 

9 case of an external interface that is developed in 

10 part with Federal funds and in part at private ex11 pense, the United States shall have unlimited rights 

12 to— 

13 ‘‘(i) use technical data pertaining to such 

14 external interface; or 

15 ‘‘(ii) release or disclose the technical data 

16 to persons outside the government or permit the 

17 use of the technical data by such persons.’’. 

18 (c) DEFINITIONS.—Section 2320 of such title is fur19 ther amended— 

20 (1) in subsection (f), by inserting ‘‘COVERED

21 GOVERNMENT SUPPORT CONTRACTOR DEFINED.—’’ 

22 before ‘‘In this section’’; and 

23 (2) by adding at the end the following new sub24 section: 


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1 ‘‘(g) ADDITIONAL DEFINITIONS.—In this section, the 

2 terms ‘major system platform’, ‘major system component’, 

3 and ‘major system interface’ have the meanings provided 

4 in section 2446a of this title.’’. 

5 (d) GOVERNMENT-INDUSTRY ADVISORY PANEL

6 AMENDMENTS.—Section 813(b) of the National Defense 

7 Authorization Act for Fiscal Year 2016 (Public Law 114– 

8 92; 129 Stat. 892) is amended— 

9 (1) by adding at the end of the paragraph (1) 

10 the following: ‘‘The panel shall develop recommenda11 tions for changes to sections 2320 and 2321 of title 

12 10, United States Code, and the regulations imple13 menting such sections.’’; 

14 (2) in paragraph (3)— 

15 (A) by redesignating subparagraphs (D) 

16 and (E) as subparagraphs (E) and (F), respec17 tively; and 

18 (B) by inserting after subparagraph (C) 

19 the following new subparagraph (D): 

20 ‘‘(D) Ensuring that the Department of De21 fense and Department of Defense contractors 

22 have the technical data rights necessary to sup23 port the modular open system architecture re24 quirement set forth in section 2446a of title 10, 

25 United States Code, taking into consideration 


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1 the distinct characteristics of major system 

2 platforms, major system interfaces, and major 

3 system components developed exclusively with 

4 Federal funds, exclusively at private expense, 

5 and with a combination of Federal funds and 

6 private expense.’’; and 

7 (3) in paragraph (4), by striking ‘‘September 

8 30, 2016’’ and inserting ‘‘December 15, 2016’’. 

9 (e) AMENDMENT RELATING TO NEGOTIATED RIGHTS

10 FOR ITEM OR PROCESS DEVELOPED WITH MIXED FUND11 ING.—Subsection (a)(2)(E) of section 2320 of title 10, 

12 United States Code, is further amended by striking the 

13 period at the end of the first sentence in the matter pre14 ceding clause (i) and all that follows through ‘‘establish15 ment of any such negotiated rights shall’’ and inserting 

16 ‘‘and shall be based on negotiations between the United 

17 States and the contractor, except in any case in which the 

18 Secretary of Defense determines, on the basis of criteria 

19 established in the regulations, that negotiations would not 

20 be practicable. The establishment of such rights shall’’. 

21 (f) AMENDMENT RELATING TO DEFERRED ORDER22 ING.—Subsection (b)(9) of section 2320 of such title is 

23 amended— 

24 (1) by striking ‘‘at any time’’ and inserting ‘‘, 

25 until the date occurring five years after acceptance 


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1 of the last item (other than technical data) under a 

2 contract or the date of contract termination, which3 ever is later,’’; 

4 (2) by striking ‘‘or utilized in the performance 

5 of a contract’’ and inserting ‘‘in the performance of 

6 the contract’’; and 

7 (3) by striking clause (ii) of subparagraph (B) 

8 and inserting the following: 

9 ‘‘(ii) is described in subsection 

10 (a)(2)(C); and’’. 

Æ 


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