H. R. 5122—240
various mechanisms that could be used to ensure an inde-
pendent evaluation of contractor performance for the purpose 
of making determinations applicable to the judging and pay-
ment of award fees. 
(2) CONSIDERATIONS.—The assessment conducted pursuant 
to paragraph (1) shall include consideration of the advantages 
and disadvantages of a system in which award fees are—
(A) held in a separate fund or funds of the Department 
of Defense; and 
(B) allocated to a specific program only upon a deter-
mination by an independent board, charged with comparing 
contractor performance across programs, that such fees 
have been earned by the contractor for such program. 
(3) REPORT.—The Secretary shall submit to the congres-
sional defense committees a report on the assessment conducted 
pursuant to paragraph (1) not later than one year after the 
date of the enactment of this Act. 
SEC. 815. REPORT ON DEFENSE INSTRUCTION RELATING TO CON-
TRACTOR 
PERSONNEL 
AUTHORIZED 
TO 
ACCOMPANY 
ARMED FORCES. 
(a) REPORT ON IMPLEMENTATION OF INSTRUCTION.—The Sec-
retary of Defense shall submit to Congress a report on the Depart-
ment of Defense instruction described in subsection (c). 
(b) MATTERS COVERED.—The report shall include the following: 
(1) Information on the status of the implementation of 
the instruction. 
(2) A discussion of how the instruction is being applied 
to—
(A) contracts in existence on the date the instruction 
was issued, including contracts with respect to which an 
option to extend is exercised after such date; 
(B) task orders issued under such contracts after the 
date referred to in subparagraph (A); and 
(C) contracts entered into after the date referred to 
in subparagraph (A). 
(3) An analysis of the effectiveness of the instruction. 
(4) A review of compliance with the instruction. 
(c) INSTRUCTION DESCRIBED.—The instruction referred to in 
this section is Department of Defense Instruction Number 3020.14, 
titled ‘‘Contractor Personnel Authorized to Accompany the United 
States Armed Forces’’. 
SEC. 816. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS. 
(a) REPORTS
AND
INFORMATION
ON
PROGRAM
COST
AND 
PERFORMANCE.—
(1) IN GENERAL.—Part IV of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 144 the 
following new chapter: 
‘‘CHAPTER 144A—MAJOR AUTOMATED INFORMATION 
SYSTEM PROGRAMS
‘‘Sec. 
‘‘2445a. Major automated information system program defined. 
‘‘2445b. Cost, schedule, and performance information. 
‘‘2445c. Reports: quarterly reports; reports on program changes. 
‘‘2445d. Construction with other reporting requirements.
H. R. 5122—241
‘‘§ 2445a. Major automated information system program 
defined 
‘‘(a) IN GENERAL.—In this chapter, the term ‘major automated 
information system program’ means a Department of Defense pro-
gram for the acquisition of an automated information system (either 
as a product or a service) if—
‘‘(1) the program is designated by the Secretary of Defense, 
or a designee of the Secretary, as a major automated informa-
tion system program; or 
‘‘(2) the dollar value of the program is estimated to exceed—
‘‘(A) $32,000,000 in fiscal year 2000 constant dollars 
for all program costs in a single fiscal year; 
‘‘(B) $126,000,000 in fiscal year 2000 constant dollars 
for all program acquisition costs for the entire program; 
or 
‘‘(C) $378,000,000 in fiscal year 2000 constant dollars 
for the total life-cycle costs of the program (including oper-
ation and maintenance costs). 
‘‘(b) ADJUSTMENT.—The Secretary of Defense may adjust the 
amounts (and base fiscal year) set forth in subsection (a) on the 
basis of Department of Defense escalation rates. An adjustment 
under this subsection shall be effective after the Secretary transmits 
a written notification of the adjustment to the congressional defense 
committees. 
‘‘(c) INCREMENTS.—In the event any increment of a major auto-
mated information system program separately meets the require-
ments for treatment as a major automated information system 
program, the provisions of this chapter shall apply to such incre-
ment as well as to the overall major automated information system 
program of which such increment is a part. 
‘‘§ 2445b. Cost, schedule, and performance information 
‘‘(a) SUBMITTAL
OF
COST, SCHEDULE, 
AND
PERFORMANCE 
INFORMATION.—The Secretary of Defense shall submit to Congress 
each calendar year, not later than 45 days after the President 
submits to Congress the budget for a fiscal year under section 
1105 of title 31, budget justification documents regarding cost, 
schedule, and performance for each major automated information 
system program for which funds are requested by the President 
in the budget. 
‘‘(b) ELEMENTS.—The documents submitted under subsection 
(a) with respect to a major automated information system program 
shall include detailed and summarized information with respect 
to the automated information system to be acquired under the 
program, and shall specifically include each of the following: 
‘‘(1) The development schedule, including major milestones. 
‘‘(2) The implementation schedule, including estimates of 
milestone dates, initial operational capability, and full oper-
ational capability. 
‘‘(3) Estimates of development costs and full life-cycle costs. 
‘‘(4) A summary of key performance parameters. 
‘‘(c) BASELINE.—(1) For purposes of this chapter, the initial 
submittal to Congress of the documents required by subsection 
(a) with respect to a major automated information system program 
shall constitute the original estimate or information originally sub-
mitted on such program for purposes of the reports and determina-
tions on program changes in section 2445c of this title.
H. R. 5122—242
‘‘(2) An adjustment or revision of the original estimate or 
information originally submitted on a program may be treated 
as the original estimate or information originally submitted on 
the program if the adjustment or revision is the result of a critical 
change in the program covered by section 2445c(d) of this title. 
‘‘(3) In the event of an adjustment or revision to the original 
estimate or information originally submitted on a program under 
paragraph (2), the Secretary of Defense shall include in the next 
budget justification documents submitted under subsection (a) after 
such adjustment or revision a notification to the congressional 
defense committees of such adjustment or revision, together with 
the reasons for such adjustment or revision. 
‘‘§ 2445c. Reports: quarterly reports; reports on program 
changes 
‘‘(a) QUARTERLY REPORTS BY PROGRAM MANAGERS.—The pro-
gram manager of a major automated information system program 
shall, on a quarterly basis, submit to the senior Department of 
Defense official responsible for the program a written report identi-
fying any variance in the projected development schedule, 
implementation schedule, life-cycle costs, or key performance 
parameters for the major automated information system to be 
acquired under the program from such information as originally 
submitted to Congress under section 2445b of this title. 
‘‘(b) SENIOR OFFICIALS RESPONSIBLE FOR PROGRAMS.—For pur-
poses of this section, the senior Department of Defense official 
responsible for a major automated information system program 
is—
‘‘(1) in the case of an automated information system to 
be acquired for a military department, the senior acquisition 
executive for the military department; or 
‘‘(2) in the case of any other automated information system 
to be acquired for the Department of Defense or any component 
of the Department of Defense, the Under Secretary of Defense 
for Acquisition, Technology, and Logistics. 
‘‘(c) REPORT ON SIGNIFICANT CHANGES IN PROGRAM.—
‘‘(1) IN GENERAL.—If, based on a quarterly report submitted 
by the program manager of a major automated information 
system program pursuant to subsection (a), the senior Depart-
ment of Defense official responsible for the program makes 
a determination described in paragraph (2), the official shall, 
not later than 45 days after receiving such report, notify the 
congressional defense committees in writing of such determina-
tion. 
‘‘(2) COVERED DETERMINATION.—A determination described 
in this paragraph with respect to a major automated informa-
tion system program is a determination that—
‘‘(A) there has been a schedule change that will cause 
a delay of more than six months but less than a year 
in any program schedule milestone or significant event 
from the schedule originally submitted to Congress under 
paragraph (1) or (2) of section 2445b(b) of this title; 
‘‘(B) the estimated program development cost or full 
life-cycle cost for the program has increased by at least 
15 percent, but less than 25 percent, over the original 
estimate submitted to Congress under paragraph (3) of 
section 2445b(b) of this title; or
H. R. 5122—243
‘‘(C) there has been a significant, adverse change in 
the expected performance of the major automated informa-
tion system to be acquired under the program from the 
parameters originally submitted to Congress under para-
graph (4) of section 2445b(b) of this title. 
‘‘(d) REPORT ON CRITICAL CHANGES IN PROGRAM.—
‘‘(1) IN GENERAL.—If, based on a quarterly report submitted 
by the program manager of a major automated information 
system program pursuant to subsection (a), the senior Depart-
ment of Defense official responsible for the program makes 
a determination described in paragraph (2), the official shall, 
not later than 60 days after receiving such report—
‘‘(A) carry out an evaluation of the program under 
subsection (e); and 
‘‘(B) submit, through the Secretary of Defense, to the 
congressional defense committees a report meeting the 
requirements of subsection (f). 
‘‘(2) COVERED DETERMINATION.—A determination described 
in this paragraph with respect to a major automated informa-
tion system program is a determination that—
‘‘(A) the system failed to achieve initial operational 
capability within five years of milestone A approval; 
‘‘(B) there has been a schedule change that will cause 
a delay of one year or more in any program schedule 
milestone or significant event from the schedule originally 
submitted to Congress under paragraph (1) or (2) of section 
2445b(b) of this title; 
‘‘(C) the estimated program development cost or full 
life-cycle cost for the program has increased by 25 percent 
or more over the original estimate submitted to Congress 
under paragraph (3) of section 2445b(b) of this title; or 
‘‘(D) there has been a change in the expected perform-
ance of the major automated information system to be 
acquired under the program that will undermine the ability 
of the system to perform the functions anticipated at the 
time information on the program was originally submitted 
to Congress under section 2445b(b) of this title. 
‘‘(e) PROGRAM EVALUATION.—The evaluation of a major auto-
mated information system program conducted under this subsection 
for purposes of subsection (d)(1)(A) shall include an assessment 
of—
‘‘(1) the projected cost and schedule for completing the 
program if current requirements are not modified; 
‘‘(2) the projected cost and schedule for completing the 
program based on reasonable modification of such require-
ments; and 
‘‘(3) the rough order of magnitude of the cost and schedule 
for any reasonable alternative system or capability. 
‘‘(f) REPORT ON CRITICAL PROGRAM CHANGES.—A report on a 
major automated information system program conducted under this 
subsection for purposes of subsection (d)(1)(B) shall include a writ-
ten certification (with supporting explanation) stating that—
‘‘(1) the automated information system to be acquired under 
the program is essential to the national security or to the 
efficient management of the Department of Defense; 
‘‘(2) there is no alternative to the system which will provide 
equal or greater capability at less cost;