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(1) by redesignating subsection (f) as subsection
(g); and
(2) by inserting after subsection (e) the following
new subsection (f):
‘‘(f)(1) If a lease or charter covered by this section is
a capital lease or a lease-purchase—
‘‘(A) the lease or charter shall be treated as an
acquisition and shall be subject to all applicable stat-
utory and regulatory requirements for the acquisition
of aircraft, naval vessels, or combat vehicles; and
‘‘(B) funds appropriated to the Department of
Defense for operation and maintenance may not be
obligated or expended for the lease or charter.
‘‘(2) In this subsection, the terms ‘capital lease’ and
‘lease-purchase’ have the meanings given those terms in Ap-
pendix B to Office of Management and Budget Circular A–
11, as in effect on the date of the enactment of the National
Defense Authorization Act for Fiscal Year 2006.’’.
(d) CONFORMING AND CLERICAL AMENDMENTS.—
(1) The heading of such section is amended to
read as follows:
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‘‘§ 2401. Requirement for authorization by law of cer-
tain contracts relating to vessels, aircraft,
and combat vehicles’’.
(2) The table of sections at the beginning of
chapter 141 of such title is amended by striking the
item relating to section 2401 and inserting the fol-
lowing new item:
‘‘Sec. 2401. Requirement for authorization by law of certain contracts relating to
vessels, aircraft, and combat vehicles.’’.
SEC. 809. REQUIREMENT FOR ANALYSIS OF ALTERNATIVES
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS.
(a) REQUIREMENT.—
(1) IN
GENERAL.—Chapter 144 of title 10,
United States Code, is amended by inserting after sec-
tion 2431 the following new section:
‘‘§ 2431a. Major defense acquisition programs: re-
quirement for analysis of alternatives
‘‘(a) No major defense acquisition program may be
commenced before the completion of an analysis of alter-
natives with respect to such program.
‘‘(b) For the purposes of this section, a major defense
acquisition program is commenced when the milestone deci-
sion authority approves entry of the program into the first
phase of the acquisition process applicable to the program.’’.
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(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 144 of such title is
amended by inserting after the item relating to sec-
tion 2431 the following new item:
‘‘2431a. Major defense acquisition programs: requirement for analysis of alter-
natives.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date of the enactment
of this Act, and shall apply with respect to major defense
acquisition programs commenced on or after that date.
SEC. 809A. REPORT ON USE OF LEAD SYSTEM INTEGRA-
TORS IN THE ACQUISITION OF MAJOR SYS-
TEMS.
(a) REPORT REQUIRED.—Not later than 90 days after
the date of the enactment of this Act, the Secretary of De-
fense shall submit to the congressional defense committees
a report on the use of lead system integrators for the acqui-
sition by the Department of Defense of major systems.
(b) CONTENTS.—The report required by subsection (a)
shall include a detailed description of the actions taken (in-
cluding a specific timetable), or to be taken, and the current
regulations and guidelines regarding—
(1) the definition of the respective rights of the
Department of Defense, lead system integrators, and
other contractors that participate in the development
or production of any individual element of the major
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weapon system (including subcontractors under lead
system integrators) in intellectual property that is de-
veloped by the other participating contractors in a
manner that ensures that—
(A) the Department of Defense obtains ap-
propriate rights in technical data developed by
the other participating contractors in accordance
with the requirements of section 2320 of title 10,
United States Code; and
(B) lead system integrators obtain access to
technical data developed by the other partici-
pating contractors only to the extent necessary to
execute their contractual obligations as lead sys-
tems integrators;
(2) the prevention or mitigation of organiza-
tional conflicts of interest on the part of lead system
integrators;
(3) the prevention of the performance by lead
system integrators of functions closely associated with
inherently governmental functions;
(4) the appropriate use of competitive procedures
in the award of subcontracts by lead system integra-
tors with system responsibility;
(5) the prevention of organizational conflicts of
interest arising out of any financial interest of lead