Sec. 844. B–21 bomber development program baseline and cost control

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In this section: The term B–21 Bomber Baseline Developmental Contract Estimate , with respect to the engineering and manufacturing development

(EMD)phase of the B–21 bomber program, is the agreed contract price as of October 27, 2015, with the selected prime contractor for the EMD phase of the program. The term B–21 Bomber Baseline Developmental Estimate with respect to the EMD phase of the B–21 bomber program is the agreed Independent Cost Estimate for the EMD phase of the program that received the concurrence of the Director of Cost Assessment and Program Evaluation under the procedures of the Weapon Systems Acquisition Reform Act of 2009 ( Public Law 111–23 ). The term B–21 bomber significant developmental cost growth threshold means a percentage increase in the B–21 Bomber Baseline Developmental Contract Estimate of at least 15 percent. The term B–21 bomber critical developmental cost growth threshold means a percentage increase in the B–21 bomber Baseline Developmental Contract Estimate of at least 25 percent. If, based upon the joint determination of the Air Force Service Acquisition Executive and the Under Secretary of Defense for Acquisition, Technology, and Logistics, the B–21 Bomber Baseline Developmental Contract Estimate has increased by a percentage equal to or greater than the B–21 bomber significant developmental cost growth threshold, the Secretary of Defense shall immediately notify Congress in writing of such determination. If, based upon joint determination of the Air Force Service Acquisition Executive and the Under Secretary of Defense for Acquisition, Technology, and Logistics, the B–21 Bomber Baseline Developmental Contract Estimate has increased by a percentage equal to or greater than the B–21 bomber critical developmental cost growth threshold, the Secretary of Defense shall immediately halt the program and take the actions described in paragraphs

(2)through (5). The Secretary shall determine the root cause or causes of the critical developmental cost growth and, in consultation with the Director of Cost Assessment and Program Evaluation, carry out an assessment of— the projected cost of completing the EMD phase if current requirements are not modified; the projected cost of completing the EMD phase based on reasonable modification of such requirements; the rough order of magnitude of the costs of any reasonable alternative system or capability; and the need to reduce funding for other programs due to the growth in cost of the B–21 program. After conducting the reassessment required under paragraph (2), the Secretary shall terminate the contract and program unless the Secretary submits to Congress a written certification that— the continuation of the contract and program is essential to the national security; there are no alternatives to the current contract and program which will provide acceptable capability to meet the joint military requirement (as defined in section 181(g)(1) of title 10, United States Code, at less cost; the new estimates of the cost to complete the contract for the EMD phase of the program have been determined by the Director of Cost Assessment and Program Evaluation to be reasonable; the program is a higher priority than programs the funding of which must be reduced to accommodate the growth in cost of the program; and the management structure for the program is adequate to manage and control program acquisition unit cost or procurement unit cost. A written certification under paragraph

(A)shall be accompanied by a report presenting the root cause analysis and assessment carried out pursuant to paragraph

(2)and the basis for each determination made in accordance with clauses

(i)through

(v)of subparagraph (A), together with supporting documentation. If the Secretary elects not to terminate the B–21 bomber EMD contract and program pursuant to paragraph (3), the Secretary shall— restructure the program in a manner that addresses the root cause or causes of the critical cost growth, as identified pursuant to paragraph (2), and ensures that the program has an appropriate management structure as set forth in the certification submitted pursuant to paragraph (3)(A); rescind the most recent milestone approval for the program and withdraw any associated certification under sections 2366a and 2366b of title 10, United States Code; require a new milestone approval for the program before taking any contract action to enter a new contract, exercise an option under an existing contract, or otherwise extend the scope of an existing contract under the program, except to the extent determined necessary by the Secretary of Defense, on a non-delegable basis, to ensure that the program can be restructured as intended by the Secretary without unnecessarily wasting resources; include in the report required under paragraph (3)(B) a description of all funding changes made as a result of the growth in cost of the program, including reductions made in funding for other programs to accommodate such cost growth; and conduct regular reviews of the program in accordance with the requirements of section 205 of the Weapon Systems Acquisition Reform Act of 2009 ( Public Law 111–23 ; 123 Stat. 1724). If the B–21 bomber program is terminated pursuant to paragraph (3), the Secretary shall submit to Congress a written report setting forth— an explanation of the reasons for terminating the program; the alternatives considered to address any problems in the program; and the course the Department of Defense plans to pursue to meet any continuing joint military requirements otherwise intended to be met by the program, including the modernization investments required to ensure that B–1, B–2, or B–52 aircraft can carry out the full range of long-range bomber aircraft missions anticipated in operational plans of the Armed Forces. Commencing with the first quarter of fiscal year 2017, the Secretary of the Air Force shall submit to the Comptroller General of the United States, not later than the 15th day following the end of each calendar quarter, the matrices described in paragraph

(2)relating to the B–21 bomber aircraft program updated with that quarter’s information. The Comptroller General shall review the matrices for accuracy, identify cost, schedule, and performance trends, and report on its assessment to the congressional defense committees not later than the 45th day following the end of each calendar quarter. The matrices described in this paragraph are the following: A matrix expressing the total cost for the Air Force service cost position for the EMD phase and low initial rate of production lots of the B–21 bomber aircraft and a matrix expressing the total cost for the prime contractor spending plan for such EMD phase and production lots, both of which shall be subdivided according to the costs of the following: Airframe. Propulsion. Mission systems. Vehicle systems, including armament and weapons delivery. Air vehicle software. Systems engineering. Program management. System test and evaluation. Support and training systems. Contractor fee. Engineering changes. Direct mission support. Government testing. A matrix detailing progress in major development elements of the B–21 bomber program subdivided according to the following: Technology readiness levels of major components. Design maturity. Software maturity. Manufacturing readiness levels of key manufacturing operations. Manufacturing operations. Test and verification key target dates. Reliability. For each fiscal year beginning with fiscal year 2017, the difference between funds budgeted for the B–21 Bomber Baseline Developmental Estimate and funds budgeted for the B–21 Bomber Baseline Developmental Contract Estimate, less other government costs to manage the B–21 bomber program and not otherwise authorized or appropriated, shall be transferred to the Rapid Prototyping Fund. For each fiscal year after fiscal year 2017, the transfer shall occur in conjunction with that fiscal year's budget submission. Funds may be transferred from the Rapid Prototyping Fund back to the B–21 bomber program to cover unexpected cost increases for the engineering and manufacturing phase of the B–21 bomber program upon the determination of the Under Secretary of Defense for Acquisition, Technology, and Logistics, and notification of such transfers to the congressional defense committees. This notification shall include the detailed reasons why such a transfer is needed.

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Pub. L. 111-23
123 Stat. 1724

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Sec. 844

B–21 bomber development program baseline and cost control

Pub. L.Pub. L. 111-23

Stat.123 Stat. 1724

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