Sec. 812. Amendments relating to independent cost estimation and cost analysis
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Section 2334 of title 10, United States Code, is amended— in subsection (a)(3), by striking selection of confidence levels both places it appears and inserting discussion of risk ; in subsection (a)(6)— by inserting or approve after conduct ; by striking major defense acquisition programs and all that follows through Authority— and inserting all major defense acquisition programs, major automated information system programs, and major subprograms— ; and in subparagraph (B), by striking or upon the request and all that follows through the semicolon at the end and inserting , upon the request of the Under Secretary of Defense for Acquisition, Technology, and Logistics, or upon the request of the milestone decision authority; by redesignating subsections (b), (c), (d), (e), and
(f)as subsections (c), (d), (e), (f), and (h), respectively; by inserting after subsection
(a)the following new subsection (b): A milestone decision authority may not approve the system development and demonstration, or production and deployment, of a major defense acquisition program, major automated information system program, or major subprogram unless an independent cost estimate of the full life-cycle cost of the program or subprogram has been conducted or approved by the Director of Cost Assessment and Program Evaluation and considered by the milestone decision authority. The regulations governing the content and submission of independent cost estimates required by subsection
(a)shall require that the independent cost estimate of the full life-cycle cost of a program or subprogram include— all costs of development, procurement, military construction, operations and support, and trained manpower to operate, maintain, and support the program or subprogram upon full operational deployment, without regard to funding source or management control; and an analysis to support decision making that identifies and evaluates alternative courses of action that may reduce cost, reduce risk, and result in more affordable programs. ; in subsection (d), as so redesignated, in paragraph (3), by striking confidence level and inserting discussion of risk ; in subsection (e), as so redesignated— by amending the subsection heading to read as follows: ; Discussion of risk in cost estimates.— by amending paragraph
(1)to read as follows: issue guidance requiring a discussion of risk, the potential impacts of risk on program costs, and approaches to mitigate risk in cost estimates for major defense acquisition programs, major automated information system programs, and major subprograms; ; in paragraph (2)— by striking such confidence level provides and inserting cost estimates provide ; and by inserting or subprogram after the program ; and in paragraph (3), by striking disclosure required by paragraph
(1)and inserting information required in the guidance under paragraph
(1); and by inserting after subsection (f), as so redesignated, the following new subsection: The Director of Cost Assessment and Program Evaluation shall, in consultation with the Under Secretary of Defense for Acquisition, Technology, and Logistics, develop policies, procedures, guidance, and a collection method to ensure that acquisition cost data are collected in a standardized format that facilitates cost estimation and comparison across acquisition programs. The program manager and contracting officer for each major defense acquisition program, major automated information system program, and major subprogram, in consultation with the cost estimating component of the relevant military department or Defense Agency, shall ensure that cost data are collected in accordance with the requirements of paragraph
(1)for any acquisition program in an amount greater than $100,000,000. The requirement under paragraph
(1)may be waived only by the Director of Cost Assessment and Program Evaluation. . Section 2334 of such title is further amended— in subsection (a)(2), by inserting or major subprogram before under chapter 144 ; in paragraphs (3), (4), and
(5)of subsection
(a)and in subsection (c)(1) (as redesignated by subsection
(a)of this section), by striking major defense acquisition programs and major automated information system programs and inserting major defense acquisition programs, major automated information system programs, and major subprograms each place it appears; in paragraphs
(1)and
(2)of subsection
(d)(as so redesignated), and in subsection (f)(4) (as so redesignated), by striking major defense acquisition program or major automated information system program and inserting major defense acquisition program, major automated information system program, or major subprogram each place it appears; in subsection (d)(4) (as so redesignated), by inserting before the period or major subprogram ; in subsection (e)(3)(B) (as so redesignated), by inserting or major subprogram after major defense acquisition program ; and in subsection (f)(3) (as so redesignated), by striking major defense acquisition program and major automated information system program and inserting major defense acquisition program, major automated information system program, and major subprogram . Chapter 144 of such title is amended— by striking section 2434; and in the table of sections at the beginning of such chapter, by striking the item relating to such section.