325 
their mission of defining an executable program 
and understanding and addressing risks. 
(3) AGILE PROGRAM EXECUTION.—An acquisi-
tion system characterized by agile program execution 
means a system in which acquisition speed and flexi-
bility to make trade-offs are balanced with the need 
to achieve desired technical performance. Such agile 
program execution includes— 
(A) program managers and program offi-
cials who are expert buyers and negotiators who 
anticipate problems, negotiate solutions, and are 
empowered to manage; 
(B) a preference for fixed price contracting 
where appropriate for the size and complexity of 
the work and for the nature and scope of the ca-
pabilities being developed; 
(C) program managers who avoid increas-
ing program risk by resisting the addition of 
new requirements or the reduction of develop-
mental activities; 
(D) empowering program managers and 
senior decisionmakers to make decisions easily in 
order to move forward with capabilities that ma-
ture quickly, cancel those that encounter greater 
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difficulties than expected, and trade-off or reduce 
requirements to maintain cost and schedule; 
(E) enabling program managers to focus on 
overcoming execution challenges and delivering 
success rather than concentrating on compliance 
with reporting, certifications, and other redtape; 
and 
(F) senior decisionmakers who have knowl-
edge of demonstrated performance as programs 
proceed through development, with robust devel-
opmental testing occurring before committing to 
production for operational use as a basis for de-
cision making. 
(4) BALANCED OVERSIGHT.—An acquisition sys-
tem characterized by balanced oversight means that 
the focus is on ensuring discipline initiating pro-
grams and that appropriate adjustments are made 
during development, so that programs have the best 
chance to succeed. Such balanced oversight includes— 
(A) involvement by decisionmakers early to 
ensure that an understanding of trade-offs, risks, 
and needs are considered, resourced, and vali-
dated, and that agreement is reached between the 
executive and legislative branches; 
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(B) acceptance by decisionmakers that com-
plex weapon system developments are inherently 
risky and require expertise and flexibility to 
manage effectively; 
(C) conscious decisions by decisionmakers 
regarding where to accept risk, while ensuring 
that risk mitigation plans are resourced (with 
time, funding, alternatives, and competent gov-
ernment and contractor officials); 
(D) measuring and monitoring by decision-
makers of the right factors, such as technology 
maturation progress and systems engineering 
during risk reduction, development cost growth 
during engineering and manufacturing develop-
ment, and reliability growth during system dem-
onstration; 
(E) work by Congress and the Department 
of Defense, once a program has begun, to resolve 
issues by considering trade-offs among cost, 
schedule, and performance necessary to best sup-
port the warfighter; and 
(F) congressional understanding of risks 
and efforts to mitigate such risks even if they are 
through non-traditional means or other techno-
logical advances. 
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SEC. 822. ACQUISITION STRATEGY REQUIRED FOR EACH 
MAJOR 
DEFENSE 
ACQUISITION 
PROGRAM 
AND MAJOR SYSTEM. 
(a) CONSOLIDATION OF REQUIREMENTS RELATING TO 
ACQUISITION STRATEGY.— 
(1) NEW
TITLE
SECTION.—Chapter 144 of 
title 10, United States Code, is amended by inserting 
after section 2431 the following new section: 
‘‘§ 2431a. Acquisition strategy 
‘‘(a) ACQUISITION STRATEGY REQUIRED.—There shall 
be an acquisition strategy for each major defense acquisi-
tion program and each major system approved by a Mile-
stone Decision Authority. 
‘‘(b) RESPONSIBLE OFFICIAL.—For each acquisition 
strategy required by subsection (a), the Under Secretary of 
Defense for Acquisition, Technology, and Logistics is re-
sponsible for issuing and maintaining the requirements 
for— 
‘‘(1) the content of the strategy; and 
‘‘(2) the review and approval process for the 
strategy. 
‘‘(c) CONSIDERATIONS.—(1) In issuing requirements 
for the content of an acquisition strategy for a major defense 
acquisition program or major system, the Under Secretary 
shall ensure that— 
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‘‘(A) the strategy clearly describes the proposed 
business and technical management approach for the 
program or system, in sufficient detail to allow the 
Milestone Decision Authority to assess the viability of 
the proposed approach; 
‘‘(B) the strategy contains a clear explanation of 
how the strategy is designed to be implemented with 
available resources, such as time, funding, and man-
agement capacity; and 
‘‘(C) the strategy considers the items listed in 
paragraph (2). 
‘‘(2) Each strategy shall, at a minimum, consider the 
following: 
‘‘(A) An approach that delivers required capa-
bility in increments, each depending on available ma-
ture technology, and that recognizes up front the need 
for future capability improvements. 
‘‘(B) Acquisition approach, including industrial 
base considerations in accordance with section 2440 
of this title. 
‘‘(C) Risk management, including such methods 
as competitive prototyping at the system, subsystem, 
or component level, in accordance with section 2431b 
of this title. 
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‘‘(D) Business strategy, including measures to 
ensure competition at the system and subsystem level 
throughout the life-cycle of the program or system in 
accordance with section 2337 of this title. 
‘‘(E) Contracting strategy, including— 
‘‘(i) contract type and how the type selected 
relates to level of program risk in each acquisi-
tion phase; 
‘‘(ii) how the plans for the program or sys-
tem to reduce risk enable the use of fixed-price 
elements in subsequent contracts and the timing 
of the use of those fixed price elements; 
‘‘(iii) market research; and 
‘‘(iv) consideration of small business par-
ticipation. 
‘‘(F) Intellectual property strategy in accordance 
with section 2320 of this title. 
‘‘(G) International involvement, including for-
eign military sales and cooperative opportunities, in 
accordance with section 2350a of this title. 
‘‘(H) Multi-year procurement in accordance with 
section 2306b of this title. 
‘‘(I) Integration of current intelligence assess-
ments into the acquisition process. 
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‘‘(J) Requirements related to logistics, mainte-
nance, and sustainment in accordance with sections 
2464 and 2466 of this title. 
‘‘(d) REVIEW.—(1) Subject to the authority, direction, 
and control of the Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics, the Milestone Decision Au-
thority shall review and approve, as appropriate, the acqui-
sition strategy for a major defense acquisition program or 
major system at each of the following times: 
‘‘(A) Milestone A approval. 
‘‘(B) The decision to release the request for 
proposals for development of the program or sys-
tem. 
‘‘(C) Milestone B approval. 
‘‘(D) Each subsequent milestone. 
‘‘(E) Review of any decision to enter into 
full-rate production. 
‘‘(F) When there has been— 
‘‘(i) a significant change to the cost of 
the program or system; 
‘‘(ii) a critical change to the cost of the 
program or system; 
‘‘(iii) a significant change to the sched-
ule of the program or system; or 
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‘‘(iv) a significant change to the per-
formance of the program or system. 
‘‘(G) Any other time considered relevant by 
the Milestone Decision Authority. 
‘‘(2) If the Milestone Decision Authority revises an ac-
quisition strategy for a program or system, the Milestone 
Decision Authority shall provide notice of the revision to 
the congressional defense committees. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition pro-
gram’ has the meaning provided in section 2430 of 
this title. 
‘‘(2) The term ‘major system’ has the meaning 
provided in section 2302(5) of this title. 
‘‘(3) The term ‘Milestone A approval’ means a 
decision to enter into technology maturation and risk 
reduction pursuant to guidance prescribed by the Sec-
retary of Defense for the management of Department 
of Defense acquisition programs. 
‘‘(4) The term ‘Milestone B approval’ has the 
meaning provided in section 2366(e)(7) of this title. 
‘‘(5) The term ‘Milestone Decision Authority’, 
with respect to a major defense acquisition program 
or major system, means the official within the De-
partment of Defense designated with the overall re-
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sponsibility and authority for acquisition decisions 
for the program or system, including authority to ap-
prove entry of the program or system into the next 
phase of the acquisition process. 
‘‘(6) The term ‘management capacity’, with re-
spect to a major defense acquisition program or major 
system, means the capacity to manage the program or 
system through the use of highly qualified organiza-
tions and personnel with appropriate experience, 
knowledge, and skills. 
‘‘(7) The term ‘significant change to the cost’, 
with respect to a major defense acquisition program 
or major system, means a significant cost growth 
threshold, as that term is defined in section 
2433(a)(4) of this title. 
‘‘(8) The term ‘critical change to the cost’, with 
respect to a major defense acquisition program or 
major system, means a critical cost growth threshold, 
as that term is defined in section 2433(a)(5) of this 
title. 
‘‘(9) The term ‘significant change to the sched-
ule’, with respect to a major defense acquisition pro-
gram or major system, means any schedule delay 
greater than six months in a reported event. 
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‘‘(f) SUBMISSION TO CONGRESSIONAL COMMITTEES.— 
Upon request by the chairman or ranking member of the 
Committee on Armed Services of the Senate or the House 
of Representatives, the Secretary of Defense shall submit to 
the committee the most recently approved acquisition strat-
egy for a major defense acquisition program or major sys-
tem. The strategy shall be submitted in unclassified form 
but may include a classified annex.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by 
inserting after the item relating to section 2431 the 
following new item: 
‘‘2431a. Acquisition strategy.’’. 
(b) ADDITIONAL AMENDMENTS.— 
(1) Section 2350a(e) of such title is amended— 
(A) in the subsection heading, by striking 
‘‘DOCUMENT’’; 
(B) in paragraph (1), by striking ‘‘the 
Under Secretary of Defense for’’ and all that fol-
lows through ‘‘of the Board’’ and inserting ‘‘op-
portunities for such cooperative research and de-
velopment shall be addressed in the acquisition 
strategy for the project’’; and 
(C) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A)— 
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(I) by striking ‘‘document’’ and 
inserting ‘‘discussion’’; and 
(II) by striking ‘‘include’’ and in-
serting ‘‘consider’’; 
(ii) in subparagraph (A), by striking 
‘‘A statement indicating whether’’ and in-
serting ‘‘Whether’’; 
(iii) in subparagraph (B)— 
(I) by striking ‘‘by the Under Sec-
retary of Defense for Acquisition, Tech-
nology, and Logistics’’; and 
(II) by striking ‘‘of the United 
States under consideration by the De-
partment of Defense’’; and 
(iv) in subparagraph (D), by striking 
‘‘The recommendation of the Under Sec-
retary’’ and inserting ‘‘A recommendation 
to the Milestone Decision Authority’’. 
(2) Section 803 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Public 
Law 107–314; 10 U.S.C. 2430 note) is repealed. 
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SEC. 823. REVISION TO REQUIREMENTS RELATING TO RISK 
MANAGEMENT IN DEVELOPMENT OF MAJOR 
DEFENSE 
ACQUISITION 
PROGRAMS 
AND 
MAJOR SYSTEMS. 
(a) RISK MANAGEMENT AND MITIGATION REQUIRE-
MENTS.— 
(1) IN
GENERAL.—Chapter 144 of title 10, 
United States Code, is amended by inserting after sec-
tion 2431a (as added by section 813) the following 
new section: 
‘‘§ 2431b. Risk management and mitigation in major 
defense acquisition programs and major 
systems 
‘‘(a) REQUIREMENT.—(1) There shall be a risk man-
agement and mitigation strategy for each major defense ac-
quisition program or major system. 
‘‘(2) The Secretary of Defense shall ensure that the ini-
tial acquisition strategy (required under section 2431a of 
this title) approved by the Milestone Decision Authority 
and any subsequent revisions include the following: 
‘‘(A) A comprehensive strategy for managing and 
mitigating risk (including technical, cost, and sched-
ule risk) during each of the following periods: 
‘‘(i) The period preceding engineering man-
ufacturing development, or its equivalent. 
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