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system integrators without system responsibility in
the development or production of individual elements
of a major weapon system; and
(6) the prevention of pass-through charges by
lead system integrators with system responsibility on
systems or subsystems developed or produced under
subcontracts where such lead system integrators do
not provide significant value added with regard to
such systems or subsystems.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘lead system integrator’’ includes
lead system integrators with system responsibility
and lead system integrators without system responsi-
bility.
(2) The term ‘‘lead system integrator with sys-
tem responsibility’’ means a prime contractor for the
development or production of a major system if the
prime contractor is not expected at the time of award,
as determined by the Secretary of Defense for pur-
poses of this section, to perform a substantial portion
of the work on the system and the major subsystems.
(3) The term ‘‘lead system integrator without
system responsibility’’ means a contractor under a
contract for the procurement of services whose pri-
mary purpose is to perform acquisition functions
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closely associated with inherently governmental func-
tions with regard to the development or production of
a major system.
(4) The term ‘‘major system’’ has the meaning
given such term in section 2302d of title 10, United
States Code.
(5) The term ‘‘pass-through charge’’ means a
charge for overhead or profit on work performed by
a lower-tier contractor (other than charges for the di-
rect costs of managing lower-tier contracts and over-
head and profit based on such direct costs) that does
not, as determined by the Secretary for purposes of
this section, promote significant value added with re-
gard to such work.
(6) The term ‘‘functions closely associated with
inherently governmental functions’’ has the meaning
given such term in section 2383(b)(3) of title 10,
United States Code.
SEC. 809B. ACQUISITION STRATEGY FOR COMMERCIAL SAT-
ELLITE COMMUNICATION SERVICES.
(a) REQUIREMENT FOR SPEND ANALYSIS.—The Sec-
retary of Defense shall, as a part of the effort of the Depart-
ment of Defense to develop a revised strategy for acquiring
commercial satellite communication services, perform a
complete spend analysis of the past and current acquisi-
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tions by the Department of commercial satellite commu-
nication services.
(b) REPORT ON ACQUISITION STRATEGY.—
(1) IN
GENERAL.—Not later than six months
after the date of the enactment of this Act, the Sec-
retary shall submit to Congress a report on the acqui-
sition strategy of the Department of Defense for com-
mercial satellite communications services.
(2) ELEMENTS.—The report required by para-
graph (1) shall include the following:
(A) A description of the spend analysis re-
quired by subsection (a), including the results of
the analysis.
(B) The proposed strategy of the Depart-
ment for acquiring commercial satellite commu-
nication services, which strategy shall—
(i) be based in appropriate part on the
results of the analysis required by sub-
section (a); and
(ii) take into account various methods
of aggregating purchases and leveraging the
purchasing power of the Department, in-
cluding through the use of multiyear con-
tracting for commercial satellite commu-
nication services.
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(C) A proposal for such legislative action as
the Secretary considers necessary to acquire ap-
propriate types and amounts of commercial sat-
ellite communications services using methods of
aggregating purchases and leveraging the pur-
chasing power of the Department (including the
use of multiyear contracting), or if the use of
such methods is determined inadvisable, a state-
ment of the rationale for such determination.
(D) A proposal for such other legislative ac-
tion that the Secretary considers necessary to
implement the strategy of the Department for ac-
quiring 
commercial 
satellite 
communication
services.
SEC. 809C. GUIDANCE ON USE OF TIERED EVALUATION OF
OFFERS FOR CONTRACTS AND TASK ORDERS
UNDER CONTRACTS.
(a) GUIDANCE REQUIRED.—The Secretary of Defense
shall prescribe guidance for the military departments and
the Defense Agencies on the use of tiered evaluations of offers
or proposals of offerors for contracts and for task orders
under contracts.
(b) ELEMENTS.—The guidance prescribed under sub-
section (a) shall include a prohibition on the initiation by
a contracting officer of a tiered evaluation of an offer or