Sec. 1703. Cost, schedule, and performance of major defense acquisition programs
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Chapter 144B of title 10, United States Code, as added by section 1701, is amended by adding at the end the following new subchapter: Sec. 2448a. Program cost, fielding, and performance goals in planning major defense acquisition programs. 2448b. Independent technical risk assessments. 2448c. Adherence to requirements and thresholds in major defense acquisition programs. Before a major defense acquisition program receives Milestone A approval or is otherwise initiated prior to Milestone B, the Secretary of Defense shall ensure, by establishing the goals described in paragraph (2), that— the program will be affordable; program planning anticipates evolution of capabilities to meet changing threats, technology insertion, and interoperability; and the program will be fielded when needed.
The goals described in this paragraph are goals for— the program acquisition unit cost (referred to in this section as the program cost target ); the date for initial operational capability (referred to in this section as the fielding target ); and technology maturation, prototyping, and a modular open system approach to evolve system capabilities and improve interoperability. In establishing goals under subsection
(a)for the program, the Secretary of Defense shall consider each of the following: The capability needs and timeframe specified in the initial capabilities document, opportunities for evolution of capabilities, and minimum acceptable capability increments. Resources available to fund the development, production, and life cycle of the program, using a reasonable estimate of future defense budgets. The number of end items expected to be procured under the program. Trade-offs among cost, schedule, technical risk, and performance objectives identified in the analysis of alternatives required under section 2366a of this title. The independent cost estimate established pursuant to section 2334(a)(6) of this title. The independent technical risk assessment conducted or approved under section 2448b of this title. The responsibilities of the Secretary of Defense in subsection
(a)may be delegated only to the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition, Technology, and Logistics. In this section: The term program acquisition unit cost has the meaning provided in section 2432(a) of this title. The term initial capabilities document has the meaning provided in section 2366a(d)(2) of this title. With respect to a major defense acquisition program, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall— before any decision to grant Milestone A approval for the program pursuant to section 2366a of this title, identify critical technologies that need to be matured in the program; and before any decision to grant Milestone B approval for the program pursuant to section 2366b 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 Under Secretary, conduct or approve an independent technical risk assessment for the program, including the identification of any critical technologies that have not been successfully demonstrated in a relevant environment. The Under Secretary shall issue guidance and a framework for categorizing the degree of technical risk in a major defense acquisition program. The Secretary of the military department concerned shall ensure that the program capability document supporting a Milestone B or subsequent milestone for a major defense acquisition program may not be submitted to the Joint Requirements Oversight Council for approval 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 section 2448a(a) of this title. A major defense acquisition program may not receive Milestone B approval until the milestone decision authority for the program determines in writing that the estimated program acquisition unit cost and the estimated date for initial operational capability for the baseline description for the program (established under section 2435) do not exceed the program cost and fielding targets established under section 2448a(a) of this title. If such estimated cost is higher than the program cost target or if such estimated date is later than the fielding target, the milestone decision authority may request that the Secretary of Defense increase the program cost target or delay the fielding target, as applicable. . Subchapter III of chapter 144B of title 10, United States Code, as added by subsection (a), shall apply with respect to major defense acquisition programs that reach Milestone A after October 1, 2016. Effective October 1, 2016, subsection
(d)of section 2430 of title 10, United States Code, as added by section 825(a) of the National Defense Authorization Act for Fiscal Year 2016 ( Public Law 114–92 ; 129 Stat. 907), is amended— in paragraph (2)(A), by inserting subject to paragraph (5), before the Secretary determines ; and by adding at the end the following new paragraph: The authority of the Secretary of Defense to designate an alternative milestone decision authority for a program with respect to which the Secretary determines that the program is addressing a joint requirement, as set forth in paragraph (2)(A), shall apply only for a major defense acquisition program that reaches Milestone A after October 1, 2016, and before October 1, 2019. .
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Sec. 1703
Cost, schedule, and performance of major defense acquisition programs
Stat.129 Stat. 907
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