Sec. 1702. Development, prototyping, and deployment of weapon system components or technology
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Chapter 144B of title 10, United States Code, as added by section 1701, is further amended by adding at the end the following new subchapter: Sec. 2447a. Technology development in the acquisition of major weapon systems. 2447b. Weapon system component or technology prototype projects: display of budget information. 2447c. Weapon system component or technology prototype projects: oversight. 2447d. Requirements and limitations for weapon system component or technology prototype projects. 2447e.
Mechanisms to speed deployment of successful weapon system component or technology prototypes. 2447f. Definition of weapon system component. Technology shall be developed in a major defense acquisition program that is initiated after January 1, 2019, only if the milestone decision authority for the program determines with a high degree of confidence that such development will not delay the fielding target of the program. If the milestone decision authority does not make such determination for a major system component being developed under the program, the milestone decision authority shall ensure that technology related to the major system component shall be sufficiently matured separate from the major defense acquisition program using the prototyping authorities of this section or other authorities, as appropriate.
In the defense budget materials for any fiscal year after fiscal year 2017, the Secretary of Defense shall, with respect to advanced component development and prototype activities (within the research, development, test, and evaluation budget), set forth the amounts requested for each of the following: Acquisition programs of record. Development, prototyping, and experimentation of weapon system components or other technologies separate from acquisition programs of record. Other budget line items as determined by the Secretary of Defense.
For purposes of subsection (a)(2), the amounts requested for development, prototyping, and experimentation of weapon system components or other technologies shall be— structured into either capability, weapon system component, or technology portfolios that reflect the priority areas for prototype projects; and justified with general descriptions of the types of capability areas and technologies being funded or expected to be funded during the fiscal year concerned. In this section, the terms budget and defense budget materials have the meaning given those terms in section 234 of this title.
The Secretary of each military department shall establish an oversight board or identify a similar group of senior advisors for managing prototype projects for weapon system components and other technologies and subsystems, including the use of funds for such projects, within the military department concerned. Each oversight board shall be comprised of senior officials with— expertise in requirements; research, development, test, and evaluation; acquisition; or other relevant areas within the military department concerned; awareness of technology development activities and opportunities in the Department of Defense, industry, and other sources; and awareness of the component capability requirements of major weapon systems, including scheduling and fielding goals for such component capabilities.
The functions of each oversight board are as follows: To issue a strategic plan every three years that prioritizes the capability and weapon system component portfolio areas for conducting prototype projects, based on assessments of high priority warfighter needs, capability gaps on existing major weapon systems, opportunities to incrementally integrate new components into major weapon systems, and technologies that are expected to be sufficiently mature to prototype within three years.
To annually recommend funding levels for weapon system component or technology development and prototype projects across capability or weapon system component portfolios. To annually recommend to the service acquisition executive of the military department concerned specific weapon system component or technology development and prototype projects, subject to the requirements and limitations in section 2447d of this title. To ensure projects are managed by experts within the Department of Defense who are knowledgeable in research, development, test, and evaluation and who are aware of opportunities for incremental deployment of component capabilities and other technologies to major weapon systems or directly to support warfighting capabilities.
To ensure projects are conducted in a manner that allows for appropriate experimentation and technology risk. To ensure necessary technical, contracting, and financial management resources are available to support each project. To submit to the congressional defense committees a semiannual notification that includes the following: A description of each weapon system component or technology prototype project initiated during the preceding six months, including an explanation of each project and its required funding.
A description of the results achieved from weapon system component prototype and technology projects completed and tested during the preceding six months. A prototype project shall be completed within three years of its initiation. A prototype project shall be selected by the service acquisition executive of the military department concerned through a merit-based selection process that identifies the most promising and cost-effective prototypes that address a high priority warfighter need and are expected to be successfully demonstrated in a relevant environment.
Prototype projects shall be funded through contracts, cooperative agreements, or other transactions. Each prototype project may not exceed a total amount of $10,000,000 (based on fiscal year 2017 constant dollars), unless— the Secretary of the military department, or the Secretary’s designee, approves a larger amount of funding for the project, not to exceed $50,000,000; and the Secretary, or the Secretary’s designee, submits to the congressional defense committees, within 30 days after approval of such funding for the project, a notification that includes— a description of the project; expected funding for the project; and a statement of the anticipated outcome of the project.
The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in paragraph
(1)on the basis of Department of Defense escalation rates. A weapon system component or technology rapid fielding project may be selected by the service acquisition executive of the military department concerned for a follow-on production contract or other transaction without the use of competitive procedures, notwithstanding the requirements of section 2304 of this title, if— a rapid fielding project addresses a high priority warfighter need; competitive procedures were used for the selection of parties for participation in the rapid fielding project; the participants in the project successfully completed the project provided for in the transaction; and a prototype of the system to be procured in the rapid fielding project was demonstrated in a relevant environment. The Secretary of a military department may, as specified in advance by appropriations Acts, transfer funds that remain available for obligation in procurement appropriation accounts of the military department to fund the low-rate initial production of the rapid fielding project until required funding for full-rate production can be submitted and approved through the regular budget process of the Department of Defense. The funds transferred under this subsection to fund the low-rate initial production of a rapid fielding project shall be for a period not to exceed two years, the amount for such period may not exceed $50,000,000, and the special transfer authority provided in this subsection may not be used more than once to fund procurement of a particular new or upgraded system. The special transfer authority provided in this subsection is in addition to any other transfer authority available to the Department of Defense. Within 30 days after the service acquisition executive of a military department selects a weapon system component or technology rapid fielding project for a follow-on production contract or other transaction, the service acquisition executive shall notify the congressional defense committees of the selection and provide a brief description of the rapid fielding project. In this subchapter, the term weapon system component has the meaning given the term major system component in section 2446a of this title. . Subchapter II of chapter 144B of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 2016.