Sec. 804. Multiyear procurement authority for covered systems and certain munitions
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Subject to section 3501 of title 10, United States Code, the Secretary of the Defense shall submit to Congress a request for a specific authorization to enter into one or more multiyear contracts for the procurement of a covered system if— a decision has been made by the responsible head of agency to proceed to full-rate production for such covered system; and such covered system is planned to maintain full-rate production for a period of five or more consecutive years after entering into such a contract. The Secretary of Defense may waive the requirements of paragraph
(1)if the Secretary determines that the projected threat environment in which the covered system is to be fielded has changed in a manner such that the procurement of such covered system is no longer necessary. This section and the requirements of this section shall apply with respect to a multiyear contract for the procurement of a covered system entered into on or after the date of the enactment of this Act. In this subsection, the term covered system has the meaning given major system in section 3041 of title 10, United States Code. Except as provided in paragraph (3), subject to section 3501 of title 10, United States Code, the head of an agency is authorized to enter into one or more multiyear contracts, beginning in fiscal year 2026, for the procurement of any of the following: Standard Missile-3 ( SM–3 ) Block 1B missile systems (and products, services, and logistics support associated with SM–3 Block 1B systems or a subsystem that performs a critical function of the missile system). Standard Missile-6 ( SM–6 ) missile systems (and products, services, and logistics support associated with SM–6 systems or a subsystem that performs a critical function of the missile system). Tomahawk Cruise Missile systems, including both Tomahawk Cruise Missile system variants (and products, services, and logistics support associated with Tomahawk Cruise Missile systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years. Advanced Medium-Range Air-to-Air Missile ( AMRAAM ) systems (and products, services, and logistics support associated with AMRAAM systems or a subsystem that performs a critical function of the missile system). Joint Air-to-Surface Standoff Missile ( JASSM ) systems (and products, services, and logistics support associated with JASSM systems or a subsystem that performs a critical function of the missile system). Long Range Anti-Ship Missile ( LRASM ) systems (and products, services, and logistics support associated with LRASM systems or a subsystem that performs a critical function of the missile system). Terminal High Altitude Area Defense ( THAAD ) systems (and products, services, and logistics support associated with THAAD systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years. Patriot Advanced Capability-3 ( PAC–3 ) Missile Segment Enhancement
(MSE)systems (and products, services, and logistics support associated with PAC–3 MSE systems or a subsystem that performs a critical function of the missile system), for more than one, but not more than seven, program years. Family of Affordable Mass Munitions ( FAMM ), Extended-Range Attack Munition ( ERAM ), Enterprise Test Vehicle ( ETV ), or ground-launched low-cost cruise missile systems (and products, services, and logistics support associated with FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems or a subsystem that performs a critical function of the missile system). Low-cost hypersonic strike systems (and products, services, and logistics support associated with low-cost hypersonic strike systems or a subsystem that performs a critical function of the missile system). The systems and subsystems described in paragraph
(1)may be procured through modifications or extensions to any existing contract for such systems and subsystems. Paragraphs (3)(B), (3)(C), (3)(D), and
(4)of subsection
(i)of section 3501 of title 10, United States Code, shall not apply with respect to a multiyear contract entered into under this subsection. Notwithstanding subsection 3501(a)(4) of this title, with respect to a multiyear contract entered into under this subsection that provides, in the terms of such contract included on the date on which such contract is entered into, for the potential insertion of upgraded components or design changes that address obsolescence or producibility requirements, such upgraded components or design changes may be included in the end product if, not later than 180 days before the insertion of such upgraded components or design changes, the head of an agency that is a party to such contract provides to the congressional defense committees a briefing on such upgraded components or design changes, including a testing plan to ensure such upgraded components or design changes will meet system requirements. In applying the requirements of subsection (i)(3) of section 3501 of title 10, United States Code, to a multiyear contract entered into under this subsection, the Secretary of Defense may not make the certification described in such subsection— for Tomahawk Cruise Missile systems described in paragraph (1)(C), until the Secretary has provided a certification for FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems described in paragraph (1)(I); for JASSM systems described in paragraph (1)(E), until the Secretary has provided a certification for FAMM, ERAM, ETV, or ground-launched low-cost cruise missile systems described in paragraph (1)(I);and for SM–6 missile systems described in paragraph (1)(B), until the Secretary has provided a certification for low-cost hypersonic strike systems described in paragraph (1)(J). The head of an agency may enter into one or more contracts for advance procurement, beginning in fiscal year 2026, associated with a system or subsystem described in paragraph
(1)for which authorization to enter into a multiyear procurement contract is provided under such paragraph, which may include procurement of economic order quantities of material and equipment when cost savings are achievable. A contract entered into under paragraph
(1)shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2026 is subject to the availability of appropriations for that purpose for such later fiscal year. In this subsection, the term head of an agency means— the Secretary of Defense; the Secretary of the Army; the Secretary of the Navy; or the Secretary of the Air Force. Section 3501(a)(1)(A) of title 10, United States Code, is amended by striking significant .