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(1) CERTAIN DUTIES.—Not later than 60 days 
after the date of the enactment of this Act, the Direc-
tor of National Intelligence shall designate a chair 
and other members to serve on the board established 
under subsection (f) of such section 506D of the Na-
tional Security Act of 1947 (as added by subsection 
(a)). 
(2) ENTERPRISE ARCHITECTURE.— 
(A) SCHEDULE
FOR
DEVELOPMENT.—The 
Director shall develop the enterprise architecture 
required by subsection (b) of such section 506D 
(as so added), including the initial Business En-
terprise Architecture for business transformation, 
not later than 60 days after the enactment of 
this Act. 
(B) REQUIREMENT
FOR
IMPLEMENTATION 
PLAN.—In developing such an enterprise archi-
tecture, the Director shall develop an implemen-
tation plan for such enterprise architecture that 
includes the following: 
(i) An acquisition strategy for new sys-
tems that are expected to be needed to com-
plete such enterprise architecture, including 
specific time-phased milestones, performance
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metrics, and a statement of the financial 
and nonfinancial resource needs. 
(ii) An identification of the intelligence 
community business systems in operation or 
planned as of the date that is 60 days after 
the enactment of this Act that will not be a 
part of such enterprise architecture, together 
with the schedule for the phased termination 
of the utilization of any such systems. 
(iii) An identification of the intel-
ligence community business systems in op-
eration or planned as of such date, that will 
be a part of such enterprise architecture, to-
gether with a strategy for modifying such 
systems to ensure that such systems comply 
with such enterprise architecture. 
(C) SUBMISSION
OF
ACQUISITION
STRAT-
EGY.—Based on the results of an enterprise proc-
ess management review and the availability of 
funds, the Director shall submit the acquisition 
strategy described in subparagraph (B)(i) to the 
congressional intelligence committees not later 
than March 31, 2011.
† HR 2701 EAS 
SEC. 323. REPORTS ON THE ACQUISITION OF MAJOR SYS-
TEMS. 
(a) REPORTS.— 
(1) IN GENERAL.—Title V of the National Secu-
rity Act of 1947 (50 U.S.C. 413 et seq.), as amended 
by section 322 of this Act, is further amended by in-
serting after section 506D, as added by section 
322(a)(1), the following new section: 
‘‘REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS 
‘‘SEC. 506E. (a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘cost estimate’— 
‘‘(A) means an assessment and quantifica-
tion of all costs and risks associated with the ac-
quisition of a major system based upon reason-
ably available information at the time the Direc-
tor establishes the 2010 adjusted total acquisition 
cost for such system pursuant to subsection (h) 
or restructures such system pursuant to section 
506F(c); and 
‘‘(B) does not mean an ‘independent cost es-
timate’. 
‘‘(2) The term ‘critical cost growth threshold’ 
means a percentage increase in the total acquisition 
cost for a major system of at least 25 percent over the 
total acquisition cost for the major system as shown
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in the current Baseline Estimate for the major sys-
tem. 
‘‘(3)(A) The term ‘current Baseline Estimate’ 
means the projected total acquisition cost of a major 
system that is— 
‘‘(i) approved by the Director, or a designee 
of the Director, at Milestone B or an equivalent 
acquisition decision for the development, pro-
curement, and construction of such system; 
‘‘(ii) approved by the Director at the time 
such system is restructured pursuant to section 
506F(c); or 
‘‘(iii) the 2010 adjusted total acquisition 
cost determined pursuant to subsection (h). 
‘‘(B) A current Baseline Estimate may be in the 
form of an independent cost estimate. 
‘‘(4) Except as otherwise specifically provided, 
the term ‘Director’ means the Director of National In-
telligence. 
‘‘(5) The term ‘independent cost estimate’ has the 
meaning given that term in section 506A(e). 
‘‘(6) The term ‘major contract’ means each of the 
6 largest prime, associate, or Government-furnished 
equipment contracts under a major system that is in
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excess of $40,000,000 and that is not a firm, fixed 
price contract. 
‘‘(7) The term ‘major system’ has the meaning 
given that term in section 506A(e). 
‘‘(8) The term ‘Milestone B’ means a decision to 
enter into major system development and demonstra-
tion pursuant to guidance prescribed by the Director. 
‘‘(9) The term ‘program manager’ means— 
‘‘(A) the head of the element of the intel-
ligence community that is responsible for the 
budget, cost, schedule, and performance of a 
major system; or 
‘‘(B) in the case of a major system within 
the Office of the Director of National Intel-
ligence, the deputy who is responsible for the 
budget, cost, schedule, and performance of the 
major system. 
‘‘(10) The term ‘significant cost growth thresh-
old’ means the percentage increase in the total acqui-
sition cost for a major system of at least 15 percent 
over the total acquisition cost for such system as 
shown in the current Baseline Estimate for such sys-
tem. 
‘‘(11) The term ‘total acquisition cost’ means the 
amount equal to the total cost for development and
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procurement of, and system-specific construction for, 
a major system. 
‘‘(b) MAJOR SYSTEM COST REPORTS.—(1) The pro-
gram manager for a major system shall, on a quarterly 
basis, submit to the Director a major system cost report 
as described in paragraph (2). 
‘‘(2) A major system cost report shall include the fol-
lowing information (as of the last day of the quarter for 
which the report is made): 
‘‘(A) The total acquisition cost for the major sys-
tem. 
‘‘(B) Any cost variance or schedule variance in 
a major contract for the major system since the con-
tract was entered into. 
‘‘(C) Any changes from a major system schedule 
milestones or performances that are known, expected, 
or anticipated by the program manager. 
‘‘(D) Any significant changes in the total acqui-
sition cost for development and procurement of any 
software component of the major system, schedule 
milestones for such software component of the major 
system, or expected performance of such software com-
ponent of the major system that are known, expected, 
or anticipated by the program manager.