IB 
Union Calendar No. 47 
111TH CONGRESS 
1ST SESSION H. R. 2101 
[Report No. 111–101] 
To promote reform and independence in the oversight of weapons system 
acquisition by the Department of Defense. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 27, 2009 
Mr. SKELTON (for himself, Mr. MCHUGH, Mr. ANDREWS, Mr. SPRATT, Mr. 
CONAWAY, Mr. COFFMAN of Colorado, Mr. SESTAK, Mr. BRADY of Penn-
sylvania, Mr. FORBES, Mrs. TAUSCHER, Mr. SNYDER, Ms. SHEA-POR-
TER, and Mr. MASSA) introduced the following bill; which was referred 
to the Committee on Armed Services 
MAY 12, 2009 
Additional sponsors: Mr. AKIN, Mr. WITTMAN, Mr. TAYLOR, Mr. BARTLETT, 
Mr. COURTNEY, Mr. MARSHALL, Mr. KISSELL, Mr. LARSEN of Wash-
ington, Mr. LOEBSACK, Ms. PINGREE of Maine, and Mr. ABERCROMBIE 
MAY 12, 2009 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 27, 2009] 
A BILL 
To promote reform and independence in the oversight of 
weapons system acquisition by the Department of Defense. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Weapons Acquisition System Reform Through Enhancing 
Technical Knowledge and Oversight Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—ACQUISITION ORGANIZATION 
Sec. 101. Independent performance of acquisition oversight functions. 
Sec. 102. Oversight of cost estimation. 
Sec. 103. Oversight of systems engineering. 
Sec. 104. Oversight of performance assessment. 
Sec. 105. Assessment of technological maturity of critical technologies of major de-
fense acquisition programs by the Director of Defense Research 
and Engineering. 
Sec. 106. Role of the commanders of the combatant commands in identifying joint 
military requirements. 
TITLE II—ACQUISITION POLICY 
Sec. 201. Acquisition strategies ensuring competition throughout the lifecycle of 
major defense acquisition programs. 
Sec. 202. Additional requirements for certain major defense acquisition programs. 
Sec. 203. Requirement for certification of major systems prior to Milestone B. 
Sec. 204. Critical cost growth in major defense acquisition programs. 
Sec. 205. Organizational conflicts of interest in the acquisition of major weapon 
systems. 
Sec. 206. Awards for Department of Defense personnel for excellence in the acqui-
sition of products and services. 
Sec. 207. Consideration of trade-offs among cost, schedule, and performance in the 
acquisition of major weapon systems. 
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TITLE I—ACQUISITION 
ORGANIZATION 
SEC. 101. INDEPENDENT PERFORMANCE OF ACQUISITION 
OVERSIGHT FUNCTIONS. 
(a) IN GENERAL.—Chapter 4 of title 10, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 145. Principal advisors for acquisition oversight 
functions 
‘‘(a) ASSIGNMENT OF ACQUISITION OVERSIGHT FUNC-
TIONS.—The Secretary of Defense shall designate an official 
within the Office of the Secretary of Defense as the principal 
advisor to the Secretary for each acquisition oversight func-
tion specified in subsection (c). An official may be des-
ignated to perform one or more of such functions. The per-
formance of duties pursuant to a designation under this sec-
tion shall not limit or otherwise affect the performance of 
any other duties assigned to such official by the Secretary 
or by other officers of the Department responsible for the 
management and direction of such official except as nec-
essary to satisfy the requirements of subsection (b). 
‘‘(b) QUALIFICATIONS.—In designating an official for 
a function pursuant to subsection (a), the Secretary shall 
ensure that the official reports directly to the Secretary in 
the performance of such function and is— 
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‘‘(1) highly expert in matters relating to the 
function; 
‘‘(2) assigned the appropriate staff and resources 
necessary to carry out the function; 
‘‘(3) independent from those engaged in the exe-
cution of acquisition programs; 
‘‘(4) free of any undue political influence; and 
‘‘(5) free of any personal conflict of interest. 
‘‘(c) ACQUISITION OVERSIGHT FUNCTIONS.—(1) The 
acquisition oversight functions to be performed by officials 
designated pursuant to subsection (a) are as follows: 
‘‘(A) Cost estimation. 
‘‘(B) Systems engineering. 
‘‘(C) Performance assessment. 
‘‘(D) Such other acquisition functions as the Sec-
retary considers appropriate. 
‘‘(2) Each acquisition oversight function specified in 
paragraph (1) shall cover all phases of an acquisition pro-
gram, including setting of requirements, formulation and 
execution of budgets, and program execution.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘145. Principal advisors for acquisition oversight functions.’’. 
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SEC. 102. OVERSIGHT OF COST ESTIMATION. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2334. Acquisition oversight: oversight of cost esti-
mation 
‘‘(a) ISSUANCE
OF POLICIES, PROCEDURES, GUID-
ANCE, AND COST ESTIMATES.—The official assigned over-
sight of cost estimation pursuant to section 145 of this title 
shall issue the following: 
‘‘(1) Policies and procedures governing the con-
duct of cost estimation and cost analysis generally for 
the acquisition programs of the Department of De-
fense. 
‘‘(2) Guidance relating to cost estimates and cost 
analyses conducted in connection with major defense 
acquisition programs under chapter 144 of this title 
or major automated information system programs 
under chapter 144A of this title. 
‘‘(3) Guidance relating to the proper selection of 
confidence levels for cost estimates generally, and spe-
cifically, for the proper selection of confidence levels 
for cost estimates for major defense acquisition pro-
grams under chapter 144 of this title or major auto-
mated information system program under chapter 
144A of this title. 
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‘‘(4) Guidance relating to full consideration of 
life-cycle management and sustainability costs of 
major defense acquisition programs under chapter 
144 of this title or major automated information sys-
tem programs under chapter 144A of this title. 
‘‘(5) Independent cost estimates and cost anal-
yses for major defense acquisition programs and 
major automated information system programs for 
which the Under Secretary of Defense for Acquisition, 
Technology, and Logistics is the Milestone Decision 
Authority— 
‘‘(A) in advance of— 
‘‘(i) any certification under section 
2366a or 2366b of title 10, United States 
Code; 
‘‘(ii) any decision to enter into low- 
rate initial production or full-rate produc-
tion; 
‘‘(iii) any certification under section 
2433(e)(2) of this title; and 
‘‘(iv) any report under section 2445c(f) 
of this title; and 
‘‘(B) at any other time considered necessary 
by such official or upon the request of the Under 
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Secretary of Defense for Acquisition, Technology, 
and Logistics. 
‘‘(b) REVIEW OF COST ESTIMATES, COST ANALYSES, 
COST INDEXES, AND RECORDS OF THE MILITARY DEPART-
MENTS.—The Secretary of Defense shall ensure that the offi-
cial designated for oversight of cost estimation pursuant to 
section 145 of this title— 
‘‘(1) promptly receives the results of all cost esti-
mates and cost analyses conducted by the military de-
partments, and all studies conducted by the military 
departments in connection with such cost estimates 
and cost analyses, for major defense acquisition pro-
grams and major automated information systems of 
the military departments, and is authorized to com-
ment on such estimates, analyses, and studies; and 
‘‘(2) has timely access to any records and data 
in the Department of Defense (including the records 
and data of each military department and including 
classified and proprietary information as appro-
priate) that the official considers necessary to review 
in order to carry out any duties under this section. 
‘‘(c) PARTICIPATION, CONCURRENCE, AND APPROVAL 
IN COST ESTIMATION.—The Secretary of Defense shall en-
sure that the official designated for oversight of cost esti-
mation pursuant to section 145 of this title is involved in 
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all discussions relating to cost estimation and the esti-
mation of resource levels required for major defense acquisi-
tion programs and major automated information systems 
of the Department of Defense generally at all stages of such 
programs and may— 
‘‘(1) participate in the formulation of study 
guidance for analyses of alternatives for major defense 
acquisition programs; 
‘‘(2) participate in discussion of resources associ-
ated with requirements; 
‘‘(3) participate in the discussion of any discrep-
ancies between an independent cost estimate and the 
cost estimate of a military department for a major 
defense acquisition program or major automated in-
formation system of the Department of Defense; 
‘‘(4) approve or disapprove, at such official’s sole 
discretion, the confidence level used in establishing a 
baseline description or budget estimate for a major 
defense acquisition program or major automated in-
formation system of the Department of Defense at any 
of the events specified in paragraph (5) of subsection 
(a) of this section; 
‘‘(5) concur in the choice of a baseline descrip-
tion or budget estimate for use at any of the events 
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specified in paragraph (5) of subsection (a) of this 
section; and 
‘‘(6) participate in consideration of any decision 
to request authorization of a multiyear procurement 
contract for a major defense acquisition program. 
‘‘(d) DISCLOSURE OF CONFIDENCE LEVELS FOR BASE-
LINE ESTIMATES OF MAJOR DEFENSE ACQUISITION PRO-
GRAMS.—The official designated to perform oversight of cost 
estimation pursuant to section 145 of this title, in approv-
ing a confidence level for use in a major defense acquisition 
program pursuant to subsection (c)(4), shall— 
‘‘(1) disclose the confidence level used in estab-
lishing a baseline estimate for the major defense ac-
quisition program, the rationale for selecting such 
confidence level, and, if such confidence level is less 
than 80 percent, the justification for selecting a con-
fidence level of less than 80 percent; and 
‘‘(2) include the disclosure required by para-
graph (1) in any decision documentation approving 
a baseline estimate for the major defense acquisition 
program, in the next Selected Acquisition Report pur-
suant to section 2432 of this title for the major de-
fense acquisition program, and in the next annual re-
port submitted under subsection (f). 
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‘‘(e) RELATIONSHIP TO COST ANALYSIS IMPROVEMENT 
GROUP.—The official designated to perform oversight of 
cost estimation pursuant to section 145 of this title shall 
be assigned responsibility for the management and oversight 
of the Cost Analysis Improvement Group of the Department 
of Defense. 
‘‘(f) ANNUAL REPORT.—Not later than March 1 of 
each year, beginning on March 1, 2010, the official des-
ignated to perform oversight of cost estimation pursuant to 
section 145 of this title shall submit to the congressional 
defense committees a report on the activities undertaken 
pursuant to this section during the preceding year. The re-
port shall be in an unclassified form but may include a 
classified annex.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘2334. Acquisition oversight: oversight of cost estimation.’’. 
SEC. 103. OVERSIGHT OF SYSTEMS ENGINEERING. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, as amended by section 102, is further amended 
by adding at the end the following new section: 
‘‘§ 2334a. Acquisition oversight: oversight of systems 
engineering 
‘‘(a) ISSUANCE
OF POLICIES, PROCEDURES, AND 
GUIDANCE.—The official designated to perform oversight of 
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systems engineering pursuant to section 145 of this title 
shall— 
‘‘(1) issue policies, procedures, and guidance for 
all elements of the Department of Defense con-
cerning— 
‘‘(A) the use of systems engineering prin-
ciples and best practices, generally; 
‘‘(B) the use of systems engineering ap-
proaches to enhance reliability, availability, and 
maintainability on major defense acquisition 
programs; 
‘‘(C) the development of systems engineering 
master plans for major defense acquisition pro-
grams, including systems engineering consider-
ations in support of life-cycle management and 
sustainability; 
‘‘(D) the inclusion of provisions relating to 
systems engineering and reliability growth in re-
quests for proposals; 
‘‘(E) the appropriate use of development 
planning to reduce the time from system develop-
ment to deployment, to reduce development risk 
and cost growth, and to provide future bench-
marks against which to trade requirements, cost, 
and schedule; 
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‘‘(F) developmental test and evaluation gen-
erally; 
‘‘(G) in coordination with the Director of 
Operational Test and Evaluation, the integra-
tion of developmental test and evaluation with 
operational test and evaluation; 
‘‘(H) in coordination with the Director of 
Operational Test and Evaluation, the develop-
ment of test and evaluation master plans for 
major defense acquisition programs; and 
‘‘(I) the use of developmental test and eval-
uation as part of a coordinated systems engi-
neering approach to system development; and 
‘‘(2) provide advocacy, oversight, and direction 
to elements of the acquisition workforce responsible for 
functions relating to systems engineering, develop-
mental test and evaluation, and life-cycle manage-
ment and sustainability. 
‘‘(b) PARTICIPATION
IN
REQUIREMENTS
DISCUS-
SIONS.—The official designated to perform oversight of sys-
tems engineering pursuant to section 145 of this title shall 
provide input on the inclusion of systems engineering re-
quirements in the process for consideration of joint military 
requirements by the Joint Requirements Oversight Council 
pursuant to section 181 of title 10, United States Code, in-
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cluding specific input relating to each capabilities develop-
ment document. 
‘‘(c) ACCESS TO RECORDS OF THE MILITARY DEPART-
MENTS.—The official designated to perform oversight of sys-
tems engineering pursuant to section 145 of this title shall 
have access to any records or data of the Department of 
Defense (including the records and data of each military 
department and including classified and proprietary infor-
mation as appropriate) that the official considers necessary 
to review in order to carry out any duties under this sec-
tion. 
‘‘(d) ASSESSMENT OF MILITARY DEPARTMENT CAPA-
BILITIES
FOR SYSTEMS ENGINEERING
AND DEVELOP-
MENTAL TEST AND EVALUATION.—The official designated 
to perform oversight of systems engineering pursuant to sec-
tion 145 of this title shall— 
‘‘(1) periodically assess the capabilities of the 
military departments for systems engineering (includ-
ing development planning) and developmental test 
and evaluation; 
‘‘(2) provide such assessment, along with such 
recommendations for improvement as the official con-
siders necessary, to the Secretary of Defense and the 
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics; and 
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‘‘(3) include such assessment and recommenda-
tions in the annual report required by subsection (g). 
‘‘(e) REVIEW AND APPROVAL OF PLANS FOR MAJOR 
DEFENSE
ACQUISITION
PROGRAMS.—The official des-
ignated to perform oversight of systems engineering pursu-
ant to section 145 of this title shall review and approve 
the following plans with respect to any major defense acqui-
sition program: 
‘‘(1) The systems engineering master plan. 
‘‘(2) The developmental test and evaluation plan 
within the test and evaluation master plan. 
‘‘(f) REPORTING THROUGH UNDER SECRETARY.—The 
official designated to perform oversight of systems engineer-
ing pursuant to section 145 of this title shall report to the 
Secretary of Defense through the Under Secretary of Defense 
for Acquisition, Technology, and Logistics. 
‘‘(g) ANNUAL REPORT.—Not later than March 1 of 
each year, beginning on March 1, 2010, the official des-
ignated to perform oversight of systems engineering pursu-
ant to section 145 of this title shall submit to the congres-
sional defense committees a report on the activities under-
taken pursuant to this section during the preceding year. 
The report shall be in unclassified form but may include 
a classified annex.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter, as amended by section 102, 
is further amended by adding at the end the following new 
item: 
‘‘2334a. Acquisition oversight: oversight of systems engineering.’’. 
SEC. 104. OVERSIGHT OF PERFORMANCE ASSESSMENT. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, as amended by section 103, is further amended 
by adding at the end the following new section: 
‘‘§ 2334b. Acquisition oversight: oversight of perform-
ance assessment 
‘‘(a) ISSUANCE
OF POLICIES, PROCEDURES, AND 
GUIDANCE FOR PERFORMANCE ASSESSMENTS.—The offi-
cial designated to perform oversight of performance assess-
ment pursuant to section 145 of this title shall be respon-
sible for the issuance of policies, procedures, and guidance 
governing the conduct of performance assessments for the 
acquisition programs of the Department of Defense, includ-
ing assessment of the extent to which acquisition pro-
grams— 
‘‘(1) 
deliver 
sufficient 
capability 
to 
the 
warfighter; 
‘‘(2) achieve timely delivery of such capability; 
and 
‘‘(3) deliver a level of value consistent with re-
sources expended. 
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‘‘(b) ASSESSMENT OF BASELINE QUALITY.—The offi-
cial designated to perform oversight of performance assess-
ment pursuant to section 145 of this title shall periodically 
assess the suitability of the baseline descriptions required 
by section 2435 of title 10, United States Code, of major 
defense acquisition programs for providing a basis for per-
formance assessment and make such recommendations to 
the Secretary of Defense and the Under Secretary of Defense 
for Acquisition, Technology, and Logistics as the official 
considers necessary to improve the suitability of baseline 
descriptions for such purpose. 
‘‘(c) EARNED VALUE MANAGEMENT SYSTEM.—The of-
ficial designated to perform oversight of performance assess-
ment pursuant to section 145 of this title shall be respon-
sible for the management and oversight of the records of 
the earned value management system of the Department of 
Defense. 
‘‘(d) PARTICIPATION
IN
CERTAIN
PROGRAM
RE-
VIEWS.—The official designated to perform oversight of per-
formance assessment pursuant to section 145 of this title 
is authorized to present an assessment of the performance 
of a major defense acquisition program during— 
‘‘(1) any discussions prior to certification under 
section 2433(e)(2) of this title; 
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‘‘(2) any discussions prior to entry into full-rate 
production; and 
‘‘(3) consideration of any decision to request au-
thorization of a multiyear procurement contract for a 
major defense acquisition program. 
‘‘(e) ANNUAL REPORT.—Not later than March 1 of 
each year, beginning on March 1, 2010, the official des-
ignated to perform oversight of performance assessment pur-
suant to section 145 of this title shall submit to the congres-
sional defense committees a report on the activities under-
taken pursuant to this section during the preceding year. 
The report shall be in unclassified form but may include 
a classified annex.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter, as amended by section 103, 
is further amended by adding at the end the following new 
item: 
‘‘2334b. Acquisition oversight: oversight of performance assessment.’’. 
SEC. 105. ASSESSMENT OF TECHNOLOGICAL MATURITY OF 
CRITICAL TECHNOLOGIES OF MAJOR DE-
FENSE ACQUISITION PROGRAMS BY THE DI-
RECTOR OF DEFENSE RESEARCH AND ENGI-
NEERING. 
(a) ASSESSMENT
BY DIRECTOR
OF DEFENSE RE-
SEARCH AND ENGINEERING.— 
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(1) IN
GENERAL.—Section 139a of title 10, 
United States Code, is amended by adding at the end 
the following new subsection: 
‘‘(c)(1) The Director of Defense Research and Engi-
neering shall periodically review and assess the techno-
logical maturity and integration risk of critical technologies 
of the major defense acquisition programs of the Depart-
ment of Defense and report on the findings of such reviews 
and assessments to the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics. 
‘‘(2) The Director shall submit to the Secretary of De-
fense and to the congressional defense committees by Janu-
ary 1 of each year a report on the technological maturity 
and integration risk of critical technologies of the major de-
fense acquisition programs of the Department of Defense.’’. 
(2) FIRST ANNUAL REPORT.—The first annual 
report under subsection (c)(2) of section 139a of title 
10, United States Code (as added by paragraph (1)), 
shall be submitted to the congressional defense com-
mittees not later than March 1, 2011, and shall ad-
dress the results of reviews and assessments conducted 
by the Director of Defense Research and Engineering 
pursuant to subsection (c)(1) of such section (as so 
added) during the preceding calendar year. 
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(b) REPORT ON RESOURCES FOR IMPLEMENTATION.— 
Not later than 120 days after the date of the enactment of 
this Act, the Director of Defense Research and Engineering 
shall submit to the congressional defense committees a re-
port describing any additional resources that may be re-
quired by the Director, and by other research and engineer-
ing elements of the Department of Defense, to carry out the 
following: 
(1) The requirements under the amendment 
made by subsection (a)(1). 
(2) The technological maturity assessments re-
quired by section 2366b(a) of title 10, United States 
Code. 
(3) The requirements of Department of Defense 
Instruction 5000, as revised. 
SEC. 106. ROLE OF THE COMMANDERS OF THE COMBATANT 
COMMANDS IN IDENTIFYING JOINT MILITARY 
REQUIREMENTS. 
(a) IN GENERAL.—Section 181(d) of title 10, United 
States Code, is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The Under Sec-
retary’’; and 
(2) by adding at the end the following new para-
graph: 
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‘‘(2) The Council shall seek and consider input from 
the commanders of the combatant commands in carrying 
out its mission under paragraphs (1) and (2) of subsection 
(b) and in conducting periodic reviews in accordance with 
the requirements of subsection (e). Such input may include, 
but is not limited to, an assessment of the following: 
‘‘(A) Any current or projected missions or 
threats in the theater of operations of the commander 
of a combatant command that would inform the as-
sessment of a new joint military requirement. 
‘‘(B) The necessity and sufficiency of a proposed 
joint military requirement in terms of current and 
projected missions or threats. 
‘‘(C) The relative priority of a proposed joint 
military requirement in comparison with other joint 
military requirements within the theater of operations 
of a commander of a combatant command. 
‘‘(D) The ability of partner nations in the the-
ater of operations of the commander of a combatant 
command to assist in meeting the joint military re-
quirement or the benefit, if any, of a partner nation 
assisting in development or use of technologies devel-
oped to meet the joint military requirement.’’. 
(b) COMPTROLLER GENERAL OF THE UNITED STATES 
REVIEW OF IMPLEMENTATION.—Not later than two years 
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after the date of the enactment of this Act, the Comptroller 
General of the United States shall submit to the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives a report on the implementation of the require-
ments of (1) subsection (d)(2) of section 181 of title 10, 
United States Code (as amended by subsection (a)), for the 
Joint Requirements Oversight Council to solicit and con-
sider input from the commanders of the combatant com-
mands, and (2) subsection (b) of section 181 of title 10, 
United States Code (as amended by section 942 of the Na-
tional Defense Authorization Act for Fiscal Year 2008 (Pub-
lic Law 110–181; 122 Stat. 287)). The report shall include, 
at a minimum, an assessment of the extent to which the 
Council has effectively sought, and the commanders of the 
combatant commands have provided, meaningful input on 
proposed joint military requirements. 
TITLE II—ACQUISITION POLICY 
SEC. 201. ACQUISITION STRATEGIES ENSURING COMPETI-
TION 
THROUGHOUT 
THE 
LIFECYCLE 
OF 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) ACQUISITION
STRATEGY
ENSURING
COMPETI-
TION.—The Secretary of Defense shall ensure that the acqui-
sition strategy for each major defense acquisition program 
includes— 
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(1) measures to ensure competition, or the option 
of competition, at both the prime contract level and 
the subcontract level (at such tier or tiers as are ap-
propriate) of such program throughout the life-cycle of 
such program as a means to improve contractor per-
formance; and 
(2) adequate documentation of the rationale for 
the selection of the subcontract tier or tiers under 
paragraph (1). 
(b) MEASURES TO ENSURE COMPETITION.—The meas-
ures to ensure competition, or the option of competition, 
for purposes of subsection (a) may include measures to 
achieve the following, in appropriate cases if such measures 
are cost-effective: 
(1) Competitive prototyping. 
(2) Dual-sourcing. 
(3) Unbundling of contracts. 
(4) Funding of a second source for interchange-
able, next-generation prototype systems or subsystems. 
(5) Use of modular, open architectures to enable 
competition for upgrades. 
(6) Use of build-to-print approaches to enable 
production through multiple sources. 
(7) Acquisition of complete technical data pack-
ages. 
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(8) Periodic competitions for subsystem up-
grades. 
(9) Licensing of additional suppliers. 
(10) Periodic system or program reviews to ad-
dress long-term competitive effects of program deci-
sions. 
(c) CONSIDERATION OF COMPETITION THROUGHOUT 
OPERATION AND SUSTAINMENT OF MAJOR DEFENSE AC-
QUISITION PROGRAMS.—In carrying out this section, the 
Secretary of Defense shall ensure that, with respect to main-
tenance of a major defense acquisition program, consider-
ation is given to capabilities within the Department of De-
fense to perform maintenance functions. 
SEC. 
202. 
ADDITIONAL 
REQUIREMENTS 
FOR 
CERTAIN 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) ADDITIONAL REQUIREMENTS RELATING TO MILE-
STONE B APPROVAL.—Section 2366b of title 10, United 
States Code, is amended— 
(1) in subsection (d)— 
(A) by inserting ‘‘(1)’’ before ‘‘The milestone 
decision authority may’’; and 
(B) by striking the second sentence and in-
serting the following: 
‘‘(2) Whenever the milestone decision authority makes 
such a determination and authorizes such a waiver— 
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‘‘(A) the waiver, the determination, and the rea-
sons for the determination shall be submitted in writ-
ing to the congressional defense committees within 30 
days after the waiver is authorized; and 
‘‘(B) the milestone decision authority shall re-
view the program not less often than annually to de-
termine the extent to which such program currently 
satisfies the certification components specified in 
paragraphs (1) and (2) of subsection (a) until such 
time as the milestone decision authority determines 
that the program satisfies all such certification com-
ponents.’’; 
(2) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively, and inserting 
after subsection (d) the following new subsection (e): 
‘‘(e) DESIGNATION
OF CERTIFICATION STATUS
IN 
BUDGET DOCUMENTATION.—Any budget request, budget 
justification material, budget display, reprogramming re-
quest, Selected Acquisition Report, or other budget docu-
mentation or performance report submitted by the Sec-
retary of Defense to the President regarding a major defense 
acquisition program receiving a waiver pursuant to sub-
section (d) shall prominently and clearly indicate that such 
program has not fully satisfied the certification require-
ments of this section until such time as the milestone deci-
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sion authority makes the determination that such program 
has satisfied all certification components pursuant to sub-
section (d)(2)(B).’’; 
(3) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(B) by redesignating paragraph (2) as 
paragraph (3); 
(C) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) has received a preliminary design review 
and conducted a formal post-preliminary design re-
view assessment, and certifies on the basis of such as-
sessment that the program demonstrates a high likeli-
hood of accomplishing its intended mission or that no 
preliminary design review is necessary for such pro-
gram to demonstrate a high likelihood of accom-
plishing its intended mission; and’’; and 
(D) in paragraph (3), as redesignated by 
subparagraph (B) of this paragraph— 
(i) in subparagraph (D), by striking 
the semicolon and inserting ‘‘, as deter-
mined by the Milestone Decision Authority 
on the basis of an independent review and 
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assessment by the Director of Defense Re-
search and Engineering; and’’; 
(ii) by striking subparagraph (E); and 
(iii) by redesignating subparagraph 
(F) as subparagraph (E). 
(b) CERTIFICATION AND REVIEW OF PROGRAMS EN-
TERING DEVELOPMENT PRIOR TO ENACTMENT OF SECTION 
2366B OF TITLE 10.— 
(1) DETERMINATION.—(A) Except as provided in 
subparagraph (B), beginning not later than 270 days 
after the date of the enactment of this Act, for each 
major defense acquisition program that has not re-
ceived a Milestone C approval, or Key Decision Point 
C approval in the case of a space program, the Mile-
stone Decision Authority shall determine whether or 
not the program satisfies the certification components 
specified in paragraphs (1) and (2) of subsection (a) 
of section 2366b of title 10, United States Code. 
(B) Subparagraph (A) shall not apply to a 
major defense acquisition program that has been re-
viewed pursuant to section 2366b of title 10, United 
States Code, prior to the date that is 270 days after 
the date of the enactment of this Act, or a major de-
fense acquisition program that has not yet received 
Milestone B approval. 
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(2) ANNUAL
REVIEW.—The Milestone Decision 
Authority shall review any program determined pur-
suant to paragraph (1) not to satisfy the certification 
components of subsection (a) of section 2366b of title 
10, United States Code, not less often than annually 
thereafter to determine the extent to which such pro-
gram currently satisfies the certification components 
specified in paragraphs (1) and (2) of subsection (a) 
of such section until such time as the Milestone Deci-
sion Authority determines that the program satisfies 
all such certification components. 
(3) DESIGNATION OF CERTIFICATION STATUS IN 
BUDGET
DOCUMENTATION.—Any 
budget 
request, 
budget justification material, budget display, re-
programming request, Selected Acquisition Report, or 
other budget documentation or performance report 
submitted by the Secretary of Defense to the President 
regarding a major defense acquisition program which 
the Milestone Decision Authority determines under 
paragraph (1) does not satisfy the certification com-
ponents specified in paragraphs (1) and (2) of sub-
section (a) of section 2366b of title 10, United States 
Code, shall prominently and clearly indicate that 
such program has not fully satisfied such certification 
components until such time as the Milestone Decision 
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Authority makes the determination that such program 
has satisfied all certification components pursuant to 
paragraph (2). 
(c) REVIEWS OF PROGRAMS RESTRUCTURED AFTER 
EXPERIENCING CRITICAL COST GROWTH.—The official des-
ignated to perform oversight of performance assessment pur-
suant to section 145 of title 10, United States Code, as 
added by this Act, shall annually review each major defense 
acquisition program that has been considered pursuant to 
paragraph (2) of section 2433(e) of title 10, United States 
Code, and which has been certified as necessary to continue 
pursuant to such paragraph, to assess the success of the pro-
gram in achieving adequate program performance after the 
completion of such consideration. The results of reviews per-
formed pursuant to this subsection shall be included in the 
next annual report of such official. 
SEC. 203. REQUIREMENT FOR CERTIFICATION OF MAJOR 
SYSTEMS PRIOR TO MILESTONE B. 
(a) CERTIFICATION.—Except as provided in subsection 
(b), beginning not later than 270 days after the date of the 
enactment of this Act, for each major defense acquisition 
program that has not received Milestone B approval, or Key 
Decision Point B approval in the case of a space program, 
the Milestone Decision Authority shall certify, after con-
sultation with the Joint Requirements Oversight Council on 
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matters relating to program requirements and military 
needs— 
(1) that the program fulfills an approved initial 
capabilities document; 
(2) that the program is being executed by an en-
tity with a relevant core competency as identified by 
the Secretary of Defense under section 118b of title 
10, United States Code; 
(3) if the program duplicates a capability al-
ready provided by an existing program, the duplica-
tion provided by such program is necessary and ap-
propriate; 
(4) that a cost estimate for such program has 
been submitted to the Milestone Decision Authority 
and that the concurrence of the official designated to 
perform oversight of cost estimation pursuant to sec-
tion 145 of title 10, United States Code, has been ob-
tained regarding the choice of a cost estimate; and 
(5) that a schedule identifying the time and 
major activities required to reach Milestone B ap-
proval, or Key Decision Point B approval in the case 
of a space program, has been submitted to the Mile-
stone Decision Authority. 
(b) EXCEPTION.—Subsection (a) shall not apply to a 
major defense acquisition program that has received a cer-
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tification as required by section 2366a, title 10, United 
States Code. 
(c) REPORTS.— 
(1) RELATING TO COST GROWTH OR SCHEDULE 
DELAY OF PROGRAMS CERTIFIED UNDER SUBSECTION 
(A).—With respect to a major defense acquisition pro-
gram certified by the Milestone Decision Authority 
under subsection (a), the Milestone Decision Author-
ity shall submit to the congressional defense commit-
tees a report in accordance with this subsection if, 
prior to Milestone B approval— 
(A) the projected cost of the program exceeds 
the cost estimate for the program submitted to 
the Milestone Decision Authority in accordance 
with subsection (a)(4) by more than 25 percent; 
or 
(B) the schedule submitted to the Milestone 
Decision Authority in accordance with sub-
section (a)(5) is delayed by more than 25 per-
cent. 
(2) RELATING TO COST GROWTH OF PROGRAMS 
CERTIFIED UNDER SECTION 2366A.—With respect to a 
major defense acquisition program certified by the 
Milestone Decision Authority under section 2366a of 
title 10, United States Code, the Milestone Decision 
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Authority shall submit to the congressional defense 
committees a report in accordance with this sub-
section if the program manager submits a notification 
to the Milestone Decision Authority pursuant to sec-
tion 2366a(b). 
(3) MATTERS COVERED.—Any report submitted 
pursuant to paragraph (1) or (2) shall— 
(A) identify the root causes of the cost or 
schedule growth; 
(B) identify appropriate acquisition per-
formance measures for the remainder of the pro-
gram; and 
(C) include one of the following: 
(i) A written certification (with a sup-
porting explanation) stating that— 
(I) such program is essential to 
national security; 
(II) there are no alternatives to 
such program that will provide accept-
able military capability at less cost; 
(III) new estimates of the cost or 
schedule, as appropriate, are reason-
able; and 
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(IV) the management structure for 
the program is adequate to manage 
and control program cost and schedule. 
(ii) A plan for terminating the devel-
opment of the program or withdrawal of 
Milestone A approval (or Key Decision 
Point A approval in the case of a space pro-
gram) if the Milestone Decision Authority 
determines that such action is in the inter-
est of national defense. 
(4) TIME OF SUBMISSION.—A report required by 
this subsection shall be submitted— 
(A) in the case of a report required by 
paragraph (1), not later than 30 days after the 
Milestone Decision Authority determines the cost 
growth or schedule delay described in that para-
graph; and 
(B) in the case of a report required by 
paragraph (2), not later than 30 days after the 
Milestone Decision Authority receives the notifi-
cation from the program manager described in 
that paragraph. 
(d) DEFINITIONS.—In this section: 
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(1) MAJOR DEFENSE ACQUISITION PROGRAM.— 
The term ‘‘major defense acquisition program’’ means 
the following: 
(A) A major defense acquisition program as 
that term is defined in section 2430 of title 10, 
United States Code. 
(B) An acquisition program of the Depart-
ment of Defense that the Secretary of Defense ex-
pects to become a major defense acquisition pro-
gram (as defined in such section 2430) upon 
Milestone B approval, on the basis of the cost es-
timate submitted in accordance with subsection 
(a)(4) of this section or subsection (a)(4) of sec-
tion 2366a of title 10, United States Code. 
(2) INITIAL CAPABILITIES DOCUMENT.—The term 
‘‘initial capabilities document’’ has the meaning pro-
vided by section 2366a (c)(2) of such title. 
(3) ENTITY.—The term ‘‘entity’’ has the meaning 
provided by section 2366a(c)(4) of such title. 
(4) MILESTONE B APPROVAL.—The term ‘‘Mile-
stone B approval’’ has the meaning provided by sec-
tion 2366(e)(7) of such title. 
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SEC. 204. CRITICAL COST GROWTH IN MAJOR DEFENSE AC-
QUISITION PROGRAMS. 
(a) AUTHORIZED ACTIONS IN EVENT OF CRITICAL 
COST GROWTH.—Paragraph (2) of section 2433(e) of title 
10, United States Code, is amended to read as follows: 
‘‘(2)(A) If the program acquisition unit cost or pro-
curement unit cost of a major defense acquisition program 
or designated major subprogram (as determined by the Sec-
retary under subsection (d)) increases by a percentage equal 
to or greater than the critical cost growth threshold for the 
program or subprogram, the Secretary of Defense, after con-
sultation with the Joint Requirements Oversight Council re-
garding program requirements, shall— 
‘‘(i) determine the root cause or causes of the 
critical cost growth including the role, if any, of— 
‘‘(I) changes or growth in requirements; 
‘‘(II) unrealistic baseline estimates; 
‘‘(III) any design, engineering, manufac-
turing, or technology integration issues; 
‘‘(IV) changes in procurement quantities; 
‘‘(V) inadequate program funding or fund-
ing instability; 
‘‘(VI) poor performance by government or 
contractor personnel responsible for program 
management; or 
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