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10 U.S.C. § 4232 (ARMED FORCES)
§ 4232. Prohibition on use of lowest price technically acceptable source selection process
(a) In General.—
The Department of Defense shall not use a lowest price technically acceptable source selection process for the engineering and manufacturing development contract of a major defense acquisition program.
(b) Definitions.—
In this section:
(1) Lowest price technically acceptable source selection process.—
The term “lowest price technically acceptable source selection process” has the meaning given that term in part 15 of the Federal Acquisition Regulation.
(2) Engineering and manufacturing development contract.—
The term “engineering and manufacturing development contract” means a prime contract for the engineering and manufacturing development of a major defense acquisition program.
(Added Pub. L. 115–91, div. A, title VIII, § 832(a)(1), Dec. 12, 2017, 131 Stat. 1468, § 2442; renumbered § 4232 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(c)(2), Jan. 1, 2021, 134 Stat. 4254.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4236 (ARMED FORCES)
§ 4236. Negotiation of price for technical data before development, production, or sustainment of major weapon systems
The Secretary of Defense shall ensure, to the maximum extent practicable, that the Department of Defense, before selecting a contractor for the engineering and manufacturing development of a major weapon system, production of a major weapon system, or sustainment of a major weapon system, negotiates a price for technical data to be delivered under a contract for such development, production, or sustainment.
(Added Pub. L. 115–91, div. A, title VIII, § 835(a)(1), Dec. 12, 2017, 131 Stat. 1471, § 2439; amended Pub. L. 115–232, div. A, title VIII, § 867, Aug. 13, 2018, 132 Stat. 1901; renumbered § 4236, Pub. L. 116–283, div. A, title XVIII, § 1847(c)(3), Jan. 1, 2021, 134 Stat. 4254.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4253 (ARMED FORCES)
§ 4253. Major defense acquisition programs: submissions to Congress on Milestone C
(a) Brief Summary Report.—
Not later than 15 days after granting Milestone C approval for a major defense acquisition program, the milestone decision authority for the program shall provide to the congressional defense committees and, in the case of intelligence or intelligence-related activities, the congressional intelligence committees a brief summary report that contains the following:
(1) The estimated cost and schedule for the program established by the military department concerned, including—
(A) the dollar values estimated for the program acquisition unit cost, average procurement unit cost, and total life-cycle cost; and
(B) the planned dates for initial operational test and evaluation and initial operational capability.
(2) The independent estimated cost for the program established pursuant to section 3221(b)(6) of this title, and any independent estimated schedule for the program, including—
(A) the dollar values estimated for the program acquisition unit cost, average procurement unit cost, and total life-cycle cost; and
(B) the planned dates for initial operational test and evaluation and initial operational capability.
(3) A summary of any production, manufacturing, and fielding risks associated with the program.
(4) An assessment of the sufficiency of the developmental test and evaluation completed, including the use of automated data analytics or modeling and simulation tools and methodologies.
(b) Additional Information.—
At the request of any of the congressional defense committees or, in the case of intelligence or intelligence-related activities, the congressional intelligence committees, the milestone decision authority shall submit to the committee further information or underlying documentation for the information in a brief summary report submitted under subsection (a), including the independent cost and schedule estimates and the independent technical risk assessments referred to in that subsection.
(c) Congressional Intelligence Committees Defined.—
In this section, the term “congressional intelligence committees” has the meaning given that term in section 437(c) of this title.
(Added Pub. L. 114–328, div. A, title VIII, § 808(c)(1), Dec. 23, 2016, 130 Stat. 2265, § 2366c; amended Pub. L. 115–91, div. A, title VIII, § 838(a)(2), Dec. 12, 2017, 131 Stat. 1474; renumbered § 4253 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(d)(3), Jan. 1, 2021, 134 Stat. 4256.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4271 (ARMED FORCES)
§ 4271. Program cost, fielding, and performance goals in planning major defense acquisition programs
(a) Program Cost and Fielding Targets.—
(1) Before funds are obligated for technology development, systems development, or production of a major defense acquisition program, the designated milestone decision authority for the program shall ensure, by establishing the goals described in paragraph (2), that the program will—
(A) be affordable;
(B) incorporate program planning that anticipates the evolution of capabilities to meet changing threats, technology insertion, and interoperability; and
(C) be fielded when needed.
(2) The goals described in this paragraph are goals for—
(A) the procurement unit cost and sustainment cost (referred to in this section as the “program cost targets”);
(B) the date for initial operational capability (referred to in this section as the “fielding target”); and
(C) technology maturation, prototyping, and a modular open system approach to evolve system capabilities and improve interoperability.
(b) Definitions.—
In this section:
(1) The term “procurement unit cost” has the meaning provided in section 4351(2) of this title.
(2) The term “initial capabilities document” has the meaning provided in section 4251(d)(1) of this title.
(Added Pub. L. 114–328, div. A, title VIII, § 807(a)(1), Dec. 23, 2016, 130 Stat. 2260, § 2448a; amended Pub. L. 115–232, div. A, title VIII, § 831(a), Aug. 13, 2018, 132 Stat. 1857; renumbered § 4271 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(e)(1), Jan. 1, 2021, 134 Stat. 4256.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4272 (ARMED FORCES)
§ 4272. Independent technical risk assessments
(a) In General.—
With respect to a major defense acquisition program, the Secretary of Defense shall conduct or approve independent technical risk assessments—
(1) before any decision to grant Milestone A approval for the program pursuant to section 4251 of this title, that identifies critical technologies and manufacturing processes that need to be matured; and
(2) before any decision to grant Milestone B approval for the program pursuant to section 4252 of this title, any decision to enter into low-rate initial production or full-rate production, or at any other time considered appropriate by the Secretary, that includes the identification of any critical technologies or manufacturing processes that have not been successfully demonstrated in a relevant environment.
(b) Guidance.—
The Secretary shall issue guidance and a framework for the conduct, execution, and approval of independent technical risk assessments.
(Added Pub. L. 114–328, div. A, title VIII, § 807(a)(1), Dec. 23, 2016, 130 Stat. 2261, § 2448b; amended Pub. L. 116–92, div. A, title IX, § 902(73), Dec. 20, 2019, 133 Stat. 1552; renumbered § 4272 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(e)(2), Jan. 1, 2021, 134 Stat. 4256.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4274 (ARMED FORCES)
§ 4274. Acquisition-related functions of chiefs of the armed forces: adherence to requirements in major defense acquisition programs
(a) Role of Service Chiefs in Program Capability Document Approval.—
The Secretary of the military department concerned shall ensure that the program capability document supporting a Milestone B or subsequent decision for a major defense acquisition program may not be approved until the chief of the armed force concerned determines in writing that the requirements in the document are necessary and realistic in relation to the program cost and fielding targets established under 4271(a) 1 of this title.
(b) Role of Service Chiefs in Material Development Decision and Acquisition System Milestones.—
Consistent with the performance of duties under section 3053 of this title, the Chief of the armed force concerned, or in the case of a joint program the chiefs of the armed forces concerned, with respect to major defense acquisition programs, shall—
(1) concur with the need for a materiel solution as identified in the Materiel Development Decision Review prior to entry into the Materiel Solution Analysis Phase under Department of Defense Instruction 5000.02;
(2) concur with the cost, schedule, technical feasibility, and performance trade-offs that have been made with regard to the program before Milestone A approval is granted under section 4251 of this title;
(3) concur that appropriate trade-offs among cost, schedule, technical feasibility, and performance objectives have been made to ensure that the program is affordable when considering the per unit cost and the total life-cycle cost before Milestone B approval is granted under section 4252 of this title; and
(4) concur that the requirements in the program capability document are necessary and realistic in relation to program cost and fielding targets as required by paragraph (1) before Milestone C approval is granted.
(c) Rule of Construction.—
Nothing in this section shall be construed to affect the assignment of functions under section 7014(c)(1)(A), section 8014(c)(1)(A), or section 9014(c)(1)(A) of this title, except as explicitly provided in this section.
(d) Program Capability Document Defined.—
In this section, the term “program capability document” has the meaning provided that term in section 4401(b)(5) of this title.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1847(e)(4), (5), Jan. 1, 2021, 134 Stat. 4256, 4257.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4292 (ARMED FORCES)
§ 4292. Contracts: limitations on lead system integrators
(a) In General.—
Except as provided in subsection (b), no entity performing lead system integrator functions in the acquisition of a major system by the Department of Defense may have any direct financial interest in the development or construction of any individual system or element of any system of systems.
(b) Exception.—
An entity described in subsection (a) may have a direct financial interest in the development or construction of an individual system or element of a system of systems if—
(1) the Secretary of Defense certifies to the Committees on Armed Services of the Senate and the House of Representatives that—
(A) the entity was selected by the Department of Defense as a contractor to develop or construct the system or element concerned through the use of competitive procedures; and
(B) the Department took appropriate steps to prevent any organizational conflict of interest in the selection process; or
(2) the entity was selected by a subcontractor to serve as a lower-tier subcontractor, through a process over which the entity exercised no control.
(c) Construction.—
Nothing in this section shall be construed to preclude an entity described in subsection (a) from performing work necessary to integrate two or more individual systems or elements of a system of systems with each other.
(Added Pub. L. 109–364, div. A, title VIII, § 807(a)(1), Oct. 17, 2006, 120 Stat. 2315, § 2410p; renumbered § 4292, Pub. L. 116–283, div. A, title XVIII, § 1847(f)(1), Jan. 1, 2021, 134 Stat. 4257.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4293 (ARMED FORCES)
§ 4293. Major defense acquisition programs: incentive program for contractors to purchase capital assets manufactured in United States
(a) Establishment of Incentive Program.—
The Secretary of Defense shall plan and establish an incentive program in accordance with this section for contractors to purchase capital assets manufactured in the United States in part with funds available to the Department of Defense.
(b) Defense Industrial Capabilities Fund May Be Used.—
The Secretary of Defense may use the Defense Industrial Capabilities Fund, established under section 814 of the National Defense Authorization Act for Fiscal Year 2004, for incentive payments under the program established under this section.
(c) Applicability to Major Defense Acquisition Program Contracts.—
The incentive program shall apply to contracts for the procurement of a major defense acquisition program.
(d) Consideration.—
The Secretary of Defense shall provide consideration in source selection in any request for proposals for a major defense acquisition program for offerors with eligible capital assets.
(Added Pub. L. 108–136, div. A, title VIII, § 822(a)(1), Nov. 24, 2003, 117 Stat. 1546, § 2436; renumbered § 4293, Pub. L. 116–283, div. A, title XVIII, § 1847(f)(2), Jan. 1, 2021, 134 Stat. 4258.)
heading: Effective Date of 2021 Amendment
text: Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4350 (ARMED FORCES)
§ 4350. Selected acquisition reports: termination
The requirements under this chapter shall terminate after the final submission covering fiscal year 2021.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1849(a), (b), Jan. 1, 2021, 134 Stat. 4259.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4351 (ARMED FORCES)
§ 4351. Selected acquisition reports: definitions
In this section:
(1) Program acquisition unit cost.—
The term “program acquisition unit cost”, with respect to a major defense acquisition program, means the amount equal to (A) the total cost for development and procurement of, and system-specific military construction for, the acquisition program, divided by (B) the number of fully-configured end items to be produced for the acquisition program.
(2) Procurement unit cost.—
The term “procurement unit cost”, with respect to a major defense acquisition program, means the amount equal to (A) the total of all funds programmed to be available for obligation for procurement for the program, divided by (B) the number of fully-configured end items to be procured.
(3) Major contract.—
The term “major contract”, with respect to a major defense acquisition program, means each of the six largest prime, associate, or Government-furnished equipment contracts under the program that is in excess of $40,000,000 and that is not a firm, fixed price contract.
(4) Full life-cycle cost.—
The term “full life-cycle cost”, with respect to a major defense acquisition program, means all costs of development, procurement, military construction, and operations and support, without regard to funding source or management control.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1849(a), (c), Jan. 1, 2021, 134 Stat. 4259, 4260.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4352 (ARMED FORCES)
§ 4352. Selected acquisition reports: requirement for quarterly reports
(a) In General.—
(1) The Secretary of Defense shall submit to Congress at the end of each fiscal-year quarter a report on—
(A) current major defense acquisition programs; and
(B) any program that is estimated by the Secretary of Defense to require—
(i) an eventual total expenditure for research, development, test, and evaluation of more than $300,000,000 (based on fiscal year 1990 constant dollars); or
(ii) an eventual total expenditure for procurement, including all planned increments or spirals, of more than $1,800,000,000 (based on fiscal year 1990 constant dollars).
(2) Except as provided in subsections (b) and (c), each such report shall include a status report on each defense acquisition program that at the end of such quarter is a major defense acquisition program.
(3) Reports under this chapter shall be known as Selected Acquisition Reports.
(b) Reports Not Required for 2d, 3d, and 4th Quarters for Certain Programs.—
A status report on a major defense acquisition program need not be included in the Selected Acquisition Report for the second, third, or fourth quarter of a fiscal year if such a report was included in a previous Selected Acquisition Report for that fiscal year and during the period since that report there has been—
(1) less than a 15 percent increase in program acquisition unit cost and current procurement unit cost for the program (or for each designated subprogram under the program); and
(2) less than a six-month delay in any program schedule milestone shown in the Selected Acquisition Report.
(c) Secretary of Defense Waiver Authority.—
(1) Authority.—
The Secretary of Defense may waive the requirement for submission of Selected Acquisition Reports for a program for a fiscal year if—
(A) the program has not entered system development and demonstration;
(B) a reasonable cost estimate has not been established for such program; and
(C) the system configuration for such program is not well defined.
(2) Notification to congressional committees.—
The Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a written notification of each waiver under paragraph (1) for a program for a fiscal year not later than 60 days before the President submits the budget to Congress pursuant to section 1105 of title 31 in that fiscal year.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1849(a), (d), Jan. 1, 2021, 134 Stat. 4259, 4260.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4354 (ARMED FORCES)
§ 4354. Selected acquisition reports for 2d, 3d, and 4th quarters
(a) Contingent Required Content.—
Each Selected Acquisition Report for the second, third, and fourth quarters of a fiscal year shall include—
(1) with respect to each major defense acquisition program that was included in the most recent comprehensive annual Selected Acquisition Report, the information described in section 4355 of this title; and
(2) with respect to each major defense acquisition program that was not included in the most recent comprehensive annual Selected Acquisition Report, the information described in section 4353 of this title.
(b) Reference to 2d, 3d, and 4th Quarters SARS as Quarterly SARS.—
Selected Acquisition Reports for the second, third, and fourth quarters of a fiscal year shall be known as Quarterly Selected Acquisition Reports.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1849(a), (f), Jan. 1, 2021, 134 Stat. 4259, 4262.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4355 (ARMED FORCES)
§ 4355. Selected acquisition reports: quarterly SAR report content
Information to be included under this subsection in a Quarterly Selected Acquisition Report with respect to a major defense acquisition program is as follows:
(1) The quantity of items to be purchased under the program.
(2) The program acquisition cost.
(3) The program acquisition unit cost for the program (or for each designated major subprogram under the program).
(4) The current procurement cost for the program.
(5) The current procurement unit cost for the program (or for each designated major subprogram under the program).
(6) The reasons for any change in program acquisition cost, program acquisition unit cost, procurement cost, or procurement unit cost or in program schedule from the previous Selected Acquisition Report.
(7) The reasons for any significant changes (from the previous Selected Acquisition Report) in the total program cost for development and procurement of the software component of the program or subprogram, schedule milestones for the software component of the program or subprogram, or expected performance for the software component of the program or subprogram that are known, expected, or anticipated by the program manager.
(8) The major contracts under the program and designated major subprograms under the program and the reasons for any cost or schedule variances under those contracts since the last Selected Acquisition Report.
(9) Program highlights since the last Selected Acquisition Report.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1849(a), (g), Jan. 1, 2021, 134 Stat. 4259, 4263.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
10 U.S.C. § 4356 (ARMED FORCES)
§ 4356. Selected acquisition reports: time for submission to Congress; form of report
(a) Time for Submission.—
Each comprehensive annual Selected Acquisition Report shall be submitted within 30 days after the date on which the President transmits the Budget to Congress for the following fiscal year, and each Quarterly Selected Acquisition Report shall be submitted within 45 days after the end of the fiscal-year quarter.
(b) Form of Report.—
A Selected Acquisition Report required under this chapter shall be submitted in unclassified form without any designation relating to dissemination control, but may contain a classified annex.
(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1849(a), (h), (i), Jan. 1, 2021, 134 Stat. 4259, 4263.)
heading: Effective Date
text: Section and amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.