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SEC. 830. TREATMENT OF INTERAGENCY AND STATE AND 
LOCAL PURCHASES WHEN THE DEPARTMENT 
OF DEFENSE ACTS AS CONTRACT INTER-
MEDIARY FOR THE GENERAL SERVICES AD-
MINISTRATION. 
Contracts executed by the Department of Defense as 
a result of the transfer of contracts from the General Serv-
ices Administration or for which the Department serves as 
an item manager for products on behalf of the General Serv-
ices Administration shall not be subject to requirements 
under chapter 148 of title 10, United States Code, to the 
extent such contracts are for purchases of products by other 
Federal agencies or State or local governments. 
SEC. 831. PILOT PROGRAM FOR STREAMLINING AWARDS 
FOR INNOVATIVE TECHNOLOGY PROJECTS. 
(a) EXCEPTION FROM CERTIFIED COST AND PRICING 
DATE REQUIREMENTS.—The requirements under section 
2306a(a) of title 10, United States Code, shall not apply 
to a contract, subcontract, or modification of a contract or 
subcontract valued at less than $7,500,000 awarded to a 
small business or non-traditional defense contractor pursu-
ant to— 
(1) a technical merit based selection procedure, 
such as a broad agency announcement; or 
(2) the Small Business Innovation Research Pro-
gram,
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unless the head of the agency determines that submission 
of cost and pricing data should be required based on past 
performance of the specific small business or non-tradi-
tional defense contractor, or based on analysis of other in-
formation specific to the award. 
(b) EXCEPTION FROM RECORDS EXAMINATION RE-
QUIREMENT.—The requirements under section 2313 of title 
10, United States Code, shall not apply to a contract valued 
at less than $7,500,000 awarded to a small business or non- 
traditional defense contractor pursuant to— 
(1) a technical merit based selection procedure, 
such as a broad agency announcement; or 
(2) the Small Business Innovation Research Pro-
gram, 
unless the head of the agency determines that auditing of 
records should be required based on past performance of the 
specific small business or non-traditional defense con-
tractor, or based on analysis of other information specific 
to the award. 
(c) SUNSET.—The exceptions under subsections (a) 
and (b) shall terminate on October 1, 2020.
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Subtitle C—Provisions Relating to 
Major Defense Acquisition Pro-
grams 
SEC. 841. ACQUISITION STRATEGY REQUIRED FOR EACH 
MAJOR DEFENSE ACQUISITION PROGRAM. 
(a) CONSOLIDATION OF REQUIREMENTS RELATING TO 
ACQUISITION STRATEGY.— 
(1) IN
GENERAL.—Chapter 144 of title 10, 
United States Code, is amended by inserting after sec-
tion 2431 the following new section: 
‘‘§ 2431a. Acquisition strategy 
‘‘(a) REQUIREMENT.—(1) There shall be an acquisi-
tion strategy for each major defense acquisition program. 
The acquisition strategy, which includes a sustainment 
strategy, for a major defense acquisition program shall be 
reviewed by the milestone decision authority for the pro-
gram at each time specified in paragraph (2). The mile-
stone decision authority may approve, disapprove, or revise 
the acquisition strategy at any such time. 
‘‘(2) The times at which the acquisition strategy for 
a major defense acquisition program shall be reviewed by 
the milestone decision authority for the program under 
paragraph (1) are the following: 
‘‘(A) Program initiation. 
‘‘(B) Each subsequent milestone.
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‘‘(C) Full-Rate Production Decision Review. 
‘‘(D) Any other time considered relevant by the 
milestone decision authority. 
‘‘(b) GUIDANCE.—The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall issue policies 
and procedures governing the contents of, and the review 
and approval process for, the acquisition strategy for a 
major defense acquisition program. 
‘‘(c) CONTENTS.—The acquisition strategy for a major 
defense acquisition program shall present a top-level de-
scription of the business and technical management ap-
proach designed to achieve the objectives of the program 
within the resource constraints imposed. The strategy shall 
be tailored to address program requirements and con-
straints, and shall express the program manager’s approach 
to the program in sufficient detail to allow the milestone 
decision authority to assess the viability of approach, meth-
od of implementation of laws and policies, and program 
objectives. Subject to guidance issued pursuant to subsection 
(b), each acquisition strategy shall address the following: 
‘‘(1) An acquisition approach, including indus-
trial base considerations in accordance with section 
2440 of this title, and consideration of alternative ac-
quisition approaches.
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‘‘(2) A risk management strategy, addressing 
cost, schedule, and technical risk. 
‘‘(3) An approach to ensuring the maturity of 
technologies and avoiding unnecessary or excessive 
concurrency. 
‘‘(4) A strategy for dividing the acquisition into 
increments or spirals, and continuously adopting 
commercial and defense technologies, where appro-
priate. 
‘‘(5) A business strategy, including measures to 
ensure continuing competition in through the life of 
the acquisition program. 
‘‘(6) A contracting strategy addressing the selec-
tion of sources, contract types, and small business 
participation. 
‘‘(7) An intellectual property strategy, in accord-
ance with section 2320 of this title. 
‘‘(8) An approach to international involvement, 
including foreign military sales and cooperative op-
portunities, in accordance with section 2350a of this 
title. 
‘‘(9) A sustainment strategy which includes all 
aspects of the total life cycle management of the weap-
on system, including product support, logistics, prod-
uct support engineering, supply chain integration,
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maintenance, acquisition logistics, and all aspects of 
software sustainment. 
‘‘(d) INDEPENDENT COST ESTIMATE.—The Director of 
Cost Analysis and Program Evaluation shall perform an 
evaluation of the sustainment portion of the acquisition 
strategy required by subsection (c)(9) prior to the Milestone 
B decision. 
‘‘(e) In this section, the term ‘milestone decision au-
thority’, with respect to a major defense acquisition pro-
gram, means the official within the Department of Defense 
designated with the overall responsibility and authority for 
acquisition decisions for the program, including authority 
to approve entry of the program into the next phase of the 
acquisition process.’’. 
(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) CONFORMING 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-
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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)— 
(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)— 
(I) by striking ‘‘The’’ and insert-
ing ‘‘A’’; and
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(II) by striking ‘‘of the Under 
Secretary’’ and inserting ‘‘to the mile-
stone 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. 
SEC. 842. RISK REDUCTION IN MAJOR DEFENSE ACQUISI-
TION PROGRAMS. 
(a) GUIDANCE ON RISK REDUCTION IN MAJOR DE-
FENSE ACQUISITION PROGRAMS.—The Secretary of Defense 
shall ensure that the acquisition strategy developed pursu-
ant to section 2431a of title 10, United States Code, as 
added by section 841, for each major defense acquisition 
program for which development activities are required in-
cludes the following elements: 
(1) A comprehensive approach to continuously 
identifying and addressing risk (including technical, 
cost, and schedule risk) beginning at program initi-
ation and continuing until the start of full rate pro-
duction as a means to improve programmatic deci-
sion making and appropriately minimize and man-
age program concurrency. 
(2) Documentation of the major sources of risk 
identified and the approach to retiring that risk.
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(b) ELEMENTS
OF COMPREHENSIVE APPROACH
TO 
RISK REDUCTION.—The comprehensive approach to identi-
fying and addressing risk for purposes of subsection (a)(1) 
shall include some combination of the following elements as 
appropriate for the item or system being acquired: 
(1) Development planning. 
(2) Systems engineering. 
(3) Integrated developmental and operational 
testing. 
(4) Preliminary and critical design reviews and 
technical reviews. 
(5) Prototyping (including prototyping at the 
system or subsystem level and competitive proto-
typing, where appropriate). 
(6) Modeling and simulation. 
(7) Technology demonstrations and technology 
off ramps. 
(8) Manufacturability and industrial base avail-
ability. 
(9) Multiple design approaches. 
(10) Alternative, lower risk reduced performance 
designs. 
(11) Schedule and funding margins for or spe-
cific risks.
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(12) Independent risk element assessments by 
outside subject matter experts. 
(13) Program phasing to address high risk areas 
as early as possible. 
(c) PREFERENCE FOR PROTOTYPING.—To the max-
imum extent practicable and consistent with the economical 
use of available financial resources, the milestone decision 
authority for each major defense acquisition program shall 
ensure that the acquisition strategy for the program pro-
vides for— 
(1) the production of competitive prototypes at 
the system or subsystem level before Milestone B ap-
proval; or 
(2) if the production of competitive prototypes is 
not practicable, the production of single prototypes at 
the system or subsystem level. 
(d) REPEAL
OF MANDATORY PROTOTYPING PROVI-
SION.—Section 203 of the Weapon Systems Acquisition Re-
form Act of 2009 (Public Law 111–23; 10 U.S.C. 2430 note) 
is repealed. 
SEC. 843. DESIGNATION OF MILESTONE DECISION AUTHOR-
ITY. 
(a) IN GENERAL.—Section 2430 of title 10, United 
States Code, is amended by adding at the end the following 
new subsection:
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‘‘(d)(1) The milestone decision authority for major de-
fense acquisition programs shall be the service acquisition 
executive of the military service that is managing the pro-
gram, unless the Secretary of Defense designates another of-
ficial to serve as the milestone decision authority. 
‘‘(2) The Secretary of Defense may designate an alter-
nate milestone decision authority in programs where— 
‘‘(A) the Secretary determines that the program 
is addressing a joint requirement; 
‘‘(B) the Secretary determines that the program 
is best managed by a defense agency; 
‘‘(C) the program has incurred a unit cost in-
crease greater than the significant cost threshold or 
critical cost threshold under section 2433 of this title; 
‘‘(D) the program has failed to develop an acqui-
sition program baseline within 2 years of program 
initiation; 
‘‘(E) the program is critical to a major inter-
agency requirement or technology development effort, 
or has significant international partner involvement; 
or 
‘‘(F) the Secretary certifies that an alternate of-
ficial serving as the milestone decision authority will 
best position the program to achieve desired cost, 
schedule, and performance outcomes.
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‘‘(3)(A) The Secretary of Defense may redelegate the 
position of milestone decision authority for a program des-
ignated above upon request of the Secretary of the military 
department concerned. A decision on redelegation must be 
made within 180 days of the request of the Secretary of 
the military department concerned. 
‘‘(B) If the Secretary of Defense denies the request for 
redelegation, the Secretary shall certify to the congressional 
defense committees that an alternate official serving as 
milestone decision authority will best position the program 
to achieve desired cost, schedule, and performance outcomes. 
No such redelegation is authorized after a program has in-
curred a unit cost increase greater than the significant cost 
threshold or critical cost threshold under section 2433 of this 
title, except for exceptional circumstances. 
‘‘(4) For major defense acquisition programs where the 
service acquisition executive of the military service that is 
managing the program is the milestone decision author-
ity— 
‘‘(A) the Secretary of Defense shall ensure that 
no documentation is required outside of the military 
service organization, without a determination by the 
Deputy Chief Management Officer that the docu-
mentation supports a specific statutory requirement 
and is implemented in a manner that will not result