Sec. 823. Revision to requirements relating to risk management in development of major defense acquisition programs and major systems
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Chapter 144 of title 10, United States Code, is amended by inserting after section 2431a (as added by section 813) the following new section: There shall be a risk management and mitigation strategy for each major defense acquisition program or major system. The Secretary of Defense shall ensure that the initial acquisition strategy (required under section 2431a of this title) approved by the Milestone Decision Authority and any subsequent revisions include the following: A comprehensive strategy for managing and mitigating risk (including technical, cost, and schedule risk) during each of the following periods:
The period preceding engineering manufacturing development, or its equivalent. The period preceding initial production. The period preceding full-rate production. An identification of the major sources of risk in each of the periods listed in subparagraph (A). In the case of a program or system with separate increments of capabilities that require Milestone Decision Authority approval to begin or proceed, paragraphs
(1)and
(2)shall apply to each increment. The comprehensive strategy to manage and mitigate risk included in the acquisition strategy for purposes of subsection (a)(2)(A) shall identify each individual risk and the risk management and mitigation activities to address each risk. For the mitigation activities identified, the strategy shall note whether they require cost and schedule margins and need to be included in funding requests. The strategy shall be comprehensive and, at a minimum, include consideration of risk mitigation techniques such as the following: Prototyping (including prototyping at the system, subsystem, or component level and competitive prototyping, where appropriate) and, if prototyping at either the system, subsystem, or component level is not used, an explanation of why it is not appropriate. Modeling and simulation, the areas that modeling and simulation will assess, and identification of the need for development of any new modeling and simulation tools in order to support the comprehensive strategy. Technology demonstrations and decision points for disciplined transition of planned technologies into programs or the selection of alternative technologies. Multiple design approaches. Alternative designs, including any designs that meet requirements but do so with reduced performance. Phasing of program activities or related technology development efforts in order to address high risk areas as early as feasible. In this section, the terms major defense acquisition program and major system have the meanings provided in section 2431a of this title. . The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2431a, as so added, the following new item: 2431b. Risk reduction in major defense acquisition programs and major systems. . Section 203 of the Weapon Systems Acquisition Reform Act of 2009 ( 10 U.S.C. 2430 note) is repealed.
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Sec. 823
Revision to requirements relating to risk management in development of major defense acquisition programs and major systems
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