Sec. 851. Pilot program for recurring awards for production, investment, and deployment through competitions
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The Secretary of Defense shall establish a pilot program to acquire through repeated competition attritable systems that solve urgent operational needs in order to incentivize sustainable production, rapid deployment, and iterative improvements. Under the pilot program, competition managers shall, in accordance with this subsection, conduct competitions with respect to urgent operational needs under which the competition managers shall rapidly solicit, evaluate, and select proposed solutions.
The Secretary shall ensure that each competition conducted under the pilot program is aligned with an operational priority of one or more combatant commands, and that the relevant combatant commanders have an opportunity to participate in the design of the competition and the evaluation criteria to be used. Competitions conducted under this pilot program shall address urgent operational needs as defined by the Secretary, in consultation with the Chairman of the Joint Chiefs of Staff and, as determined appropriate by the Secretary, Defense Agencies (as defined in section 101(a) of title 10, United States Code), the military services, and entities in the private sector.
The Secretary shall ensure that each competition is executed to facilitate the award of a production contract or agreement not later than 15 days after completion of the competition. Competition managers shall employ evaluation and selection processes that emphasizes effectiveness, transparency, and speed to deploy when conducting competitions under the pilot program. Competitions conducted under the pilot program shall focus on proposed solutions at technology readiness levels equal to or more advanced than levels corresponding to Technology Readiness Level 7 or Technology Readiness Level 8.
Competitions conducted under the pilot program shall not be subject to the Joint Capabilities Integration and Development System Manual. When conducting a competition under the pilot program, the competition manager shall select the best solution for the relevant urgent operational need. Not later than 2 years after a competition under the pilot program with respect to an urgent operational need, a subsequent competition shall be conduct with respect to such urgent operational need unless the Secretary determines that a subsequent competition with respect to such urgent operational need is unwarranted and submits to the relevant committees a written justification for such determination.
The Secretary shall consider the nature of each relevant urgent operational need and the circumstances of performance and production that resulted from the initial or preceding competition when determining the timing of a subsequent competition under subparagraph (A). The first two competitions carried out the pilot program must be with respect to solving one of the following urgent operational need: Short-range air defense. Tactical precision strike. In addition to any other criteria for the selection of a proposed solution under this section, a proposed solution to either of the first two competitions carried out under the pilot program must demonstrate an ability— to offer multiple kinetic or non-kinetic effects options; to identify individual threats or groups of threats and, in each case, to track, target, and deploy effects options to engage those threats; to provide material benefits to the Department of Defense, including cost savings or more effective use of personnel; in the case of a competition seeking to address the urgent operational need described in subparagraph (A)(i)— to destroy, neutralize, or deter low altitude air threats; to defend fixed and semi-fixed assets; and to maneuver forces; and in the case of a competition seeking to address the urgent operational need described in subparagraph (A)(ii)— to engage targets at ranges of 20 to 100 miles; and to provide surface-to-surface effects launched from and targeted at ground-based, sea-based, or littoral locations.
Not more than 8 competitions per year may be carried out under the pilot program. The winning offeror of a successful competition shall be awarded a contract or other agreement, including a transaction other than a contract, cooperative agreement, or grant, under which the Department of Defense, or relevant component thereof, may acquire the proposed solution of such winning offeror for such competition. Except as provided in this section, a contract or other agreement awarded under this subsection shall— be designed to enable the proposed solution to be produced or provided at a scale and on a timeline that maximizes the likelihood of that the solutions will successfully address the urgent operational challenge; prioritize speed to award; provide for subsequent competitions in accordance with this section; and limit terms and conditions to those required by law.
Subject to the availability of appropriations, the total amount of funding provided for an award under this subsection shall not be less than $50,000,000, unless the Secretary or the Secretary’s designee approves a lesser amount of funding and certifies to the relevant committees that such lesser amount is sufficient to address the relevant urgent operational need and meet the general and specific characteristics applicable to the competition. If more than one offeror meets the objectives of the competition, more than one contract or other agreement may be awarded, as determined appropriate by the Secretary.
Except as waived under subsection (i), a contract or other agreement may be awarded under this subsection consistent with the applicable authorities in sections 4021, 4022, and 4023 of title 10, United States Code, except that paragraph (d)(1) of such section 4022 shall not apply. The Secretary shall designate a competition manager for each competition carried out under the pilot program. Except as provided in subparagraph (B), the Secretary shall directly oversee each competition manager with respect to carrying out competitions under the pilot program.
The Secretary may delegate the authority for overseeing competition managers under subparagraph
(A)to the Deputy Secretary of Defense. The Secretary shall ensure that the primary official duties of each competition manager shall be conducting competitions, the resulting contracting actions, and any subsequent competitions. The Secretary may define additional duties to maximize the ability of competition managers to coordinate with a military service, Defense Agency (as defined in section 101(a) of title 10, United States Code), or combatant command to ensure the operational success of the competitions. The Secretary shall ensure that each competition manager has appropriate expertise in the specific focus areas of the competition which such competition will be conducting and on the defense acquisition system. Competition managers may be— civilian officers or employees in a Senior Executive Service, Senior-Level, or scientific or professional position; or members of the armed forces in a grade at or above O–6. The Secretary shall ensure that competition managers have the authorities required, including supervisory authority over contracting personnel who may be assigned to report to the competition managers, to facilitate the award of contracts or agreements under subsection
(c)to the winning offerors of the competitions. Except where the authority of the Secretary is explicitly non-delegable by statute, the Secretary is authorized to delegate to competition managers any authorities required to carry out this section, including the waiver authority described in subsection (i), provided that the Secretary submits to the relevant committees a notice of such delegations in writing. In any fiscal year in which the Secretary of Defense conducts competitions under the pilot program, the Secretary may use covered funds available to the Department of Defense to acquire and deploy the proposed solutions selected pursuant to such competitions if the Secretary submits to the relevant committees within 10 days a written finding that the use of such funds is necessary to address in a timely manner the relevant urgent operational need for such a competition. The covered funds used under the authority provided by this subsection may not exceed $200,000,000 in any fiscal year. In this subsection, the term covered funds means— with respect to the initial competitions required by subsection (b), funds provided for short-range air defense and tactical precision strike; with respect to all other competitions, funds provided for the capabilities related to the urgent operational need or needs associated with such competitions; or funds available to the Department under the authorities and constraints of chapter 253 of title 10, United States Code. Subject to the availability of appropriations, the Secretary shall ensure that efforts to facilitate each competition, to include funding for the award of production contracts or agreements upon successful completion of a competition, are included in the annual budget request submitted under section 1105 of title 31, United States Code, during each year of the pilot program and the future-years defense program under section 221 of title 10, United States Code. Not later than 90 days after the date of enactment of this Act, the Secretary shall issue guidance for the carrying out the pilot program. The guidance required by paragraph
(1)shall include the following: Metrics for the design, timing, and organization of competitions under the pilot program. Opportunities for soliciting and incorporating inputs from combatant commanders, Defense Agencies (as defined in section 101(a) of title 10, United States Code), military services, and private sector entities. A process for the general conduct of competitions under the pilot program, including merit-based selection criteria for selecting the most efficient and effective solutions, and procedures to provide as much transparency as practicable to offerors, government agencies, and the public. Procedures to minimize the time between the completion of a competition under the pilot program and the award of a production or service contract to the winning offeror. Procedures to ensure that the goods or services from the winning offeror of each competition under the pilot program are acquired and fielded as quickly as possible, with a goal of awarding a contract or other agreement under subsection
(c)for the acquisition of such goods or services within 15 days. Procedures to include funding required for the efficient and rapid procurement of the goods or services from winning offerors of competitions under the pilot program as part of the annual Program Objective Memorandum and budget request process. Not later than March 1 and September 1 of each year beginning after the date of enactment of this Act, and continuing until September 1, 2029, the Secretary shall brief the relevant committees on each competition under the pilot program that is planned, underway, or completed. Each briefing required under paragraph
(1)shall include the following: The guidance issued pursuant to this section. A description of how the authorities have been used, including the metrics used for, testing, evaluation, selection, and frequency of re-competitions. Accomplishments from and challenges to using the authorities under section. Recommendations for legislative or regulatory changes to the authority under this section to promote efficient and effective acquisition of capabilities. Each briefing required by paragraph
(1)shall be in an unclassified format but may contain classified annexes. In connection with exercising the authority of this section, the Secretary may waive the application of any provision of acquisition law or regulation to the same extent as allowed by the authority provided in chapter 253 of title 10, United States Code. Nothing in this section shall preclude an winning offeror from improving the quality or quantity of goods or services supplied pursuant to a competition, if the winning offeror can do so in compliance with the terms of such contract or other agreement and the amount of funding provided. In this section: The term attritable system means systems, including unmanned systems, that are— purpose-designed and potentially reusable; suitable for integration by digital means; and affordable to allow risk of loss. The term pilot program means the pilot program established under subsection (a). The term relevant committees means the Committees on Armed Services of the Senate and the House of Representatives and the Subcommittees on Defense of the Committees on Appropriations of the Senate and the House of Representatives. The term relevant urgent operational need means, with respect to a competition, the urgent operational need with respect to which such competition is being conducted. The term Secretary means the Secretary of Defense. The term winning offeror means, with respect to a competition under the pilot program, an individual or entity awarded a contract or other agreement under subsection (c). The authority under this section to carry out the pilot program shall terminate on December 31, 2028.