Sec. 871. Modifications to current defense acquisition requirements
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Title 10, United States Code, is amended— in section 1749(f)(1), by striking on a reimbursable basis ; in section 2222(i)(1)(A)— in clause (vi), by adding or real estate system after An installations management ; and by adding at the end the following new clauses: A budget system. A retail system. A health care system. A travel and expense system. A payroll system. A supply chain management system. A enterprise resource planning system. A contractor management system. ; in section 3012(3)(B), by striking lowest overall cost alternative and inserting best value ; in section 3069— in subsection (a), by striking if that head of an agency and all that follows through a complete end item ; by striking subsections
(b)and (d); and by redesignating— subsection
(c)as subsection (b); and subsection
(e)as subsection (c); in section 3204(e)— in paragraph (1), by striking subparagraph
(B)and inserting the following: the justification is approved— in the case of a contract for an amount exceeding the simplified acquisition threshold (but not more than $100,000,000)— by the competition advocate for the contracting activity (without further delegation); or by an official referred to in clause
(ii)or (iii); in the case of a contract for an amount exceeding $100,000,000 (but not more than $500,000,000)— by the head of the contracting activity (without further delegation); by an official referred to in clause (iii); or for the Defense Advanced Research Projects Agency, the Defense Innovation Unit, or the Missile Defense Agency, by the director of the agency; or in the case of a contract for an amount exceeding $500,000,000— by the senior procurement executive for the agency as designated for the purpose of section 1702(c) of title 41 (without further delegation); in the case of the Under Secretary of Defense for Acquisition and Sustainment, acting in the capacity as the senior procurement executive for the Department of Defense, by the delegate of the Under Secretary as designated pursuant to paragraph (6); or for the Defense Advanced Research Projects Agency, the Defense Innovation Unit, or the Missile Defense Agency, by the director of the agency; and ; and in paragraph (6)— by striking
(A)The authority of the head and all that follows through
(B)The authority of the Under Secretary and inserting The authority of the Under Secretary ; by redesignating clauses
(i)and
(ii)as subparagraphs
(A)and (B), respectively; and by redesignating subclauses
(I)and
(II)as clauses
(i)and (ii), respectively; in section 3226(d), by amending paragraph
(2)to read as follows: Funds described in paragraph
(1)may be used— to cover any increased program costs identified by a revised cost analysis or target developed pursuant to subsection (b); to acquire additional end items in accordance with section 3069 of this title; or to cover the cost of risk reduction and process improvements. ; in section 3243(d)— in paragraph (1)(B), by striking subject to paragraph (2), ; by striking paragraph (2); and by redesignating paragraph
(3)as paragraph (2); in section 3374(a)— in the heading, by striking after certain reduced ; Allowed profit to reflect in paragraph (1), by striking and ; in paragraph (2), by striking the period and inserting ; and ; and by adding at the end the following new paragraph: the increased cost risk of the contractor with respect to any costs incurred prior to the award of the undefinitized contractual action when such costs— would otherwise have been directly chargeable under the contract post-award; and were incurred to meet— the anticipated contract delivery schedule of the agency; or the anticipated contract price targets of the agency. ; in section 3703(a)(1)(A), by striking competition that results in at least two or more responsive and viable competing bids and inserting price competition ; in section 3705, by amending subsection
(b)to read as follows: In the event the contracting officer is unable to determine proposed prices are fair and reasonable by any other means, an offeror who fails to make a good faith effort to comply with a reasonable request to submit data in accordance with subsection
(a)is ineligible for award unless the head of the agency initiates the assessment of the offeror as a source of supply for industrial capabilities under the authorities provided by sections 865 and 882 of the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 ( Public Law 118–159 ). ; in section 4201— in subsection (a)(2)— in subparagraph (A), by striking $300,000,000 (based on fiscal year 1990 constant dollars) and inserting $1,000,000,000 (based on fiscal year 2024 constant dollars) ; and in subparagraph (B), by striking $1,800,000,000 (based on fiscal year 1990 constant dollars) and inserting $5,000,000,000 (based on fiscal year 2024 constant dollars) ; and in subsection (b), by adding at the end the following new paragraph: An acquisition program for software and covered hardware as described by section 3603 of this title. ; in section 4882, by striking the President, through the head of any department, each place it appears and inserting the Secretary of Defense ; and in section 4884, by striking The President and inserting The Secretary of Defense . in section 4231— by striking subsection (a); by redesignating subsections
(b)and
(c)as subsections
(c)and (d), respectively; by inserting before subsection (c), as redesignated by subparagraph (B), the following new subsections: The number of low-rate initial production lots associated with a major defense acquisition program may not be more than one if— the milestone decision authority authorized the use of a fixed-price type contract at the time of Milestone B approval; and the scope of the work covered by the fixed-price type contract includes the development and the low-rate initial production of items for the major defense acquisition program. The acquisition executive of the applicable service, or a designee of the executive, may waive the limitation under paragraph
(1)if— the waiver authority is not delegated to the contracting officer; and written notification of the waiver, which includes the associated rationale, is provided to the congressional defense committees not later than 30 days after the date on which the waiver is issued. With respect to a fixed-price type contract for the procurement of shipbuilding associated with a major defense acquisition program, the number of ships to be procured under the contract, including all options, may not be more than two ships if the scope of the work covered by the contract includes the detail design for the ship and the construction of items for the launch and eventual delivery of the completed ship. The Secretary concerned may waive the limitation under paragraph
(1)if, not later than 30 days after the date on which the waiver is issued, the Secretary submits to the congressional defense committees a written notification of the waiver that includes a certification that the basic and functional design of any ship to be procured under the contract described in paragraph
(1)is complete. ; and by adding at the end the following new subsection: In this section: The term basic and functional design has the meaning given such term in section 8669c of this title. The term construction means steel cutting, module fabrication, assembly, outfitting, keel laying, and module erection. The term detail design means design using computer-aided modeling to enable the generation of work instructions that show detailed system information and support construction, including— guidance for subcontractors and suppliers; installation drawings; schedules; material lists; and lists of prefabricated materials and parts. The term major defense acquisition program has the meaning given such term in section 4201 of this title. The term Milestone B approval has the meaning given such term in section 4172 of this title. The term milestone decision authority has the meaning given such term in section 4211 of this title. . Section 890 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 ( Public Law 115–232 ; 10 U.S.C. note prec. 3701) is amended— in the heading, by striking ; pilot by striking pilot each place it appears; in subsection (b)(2), by striking minimal reporting and inserting no unique reporting ; and by striking subsections
(c)and (d). Section 864(d) of the Servicemember Quality of Life Improvement and National Defense Authorization Act for Fiscal Year 2025 ( Public Law 118–159 ) is amended— in the subsection heading, by striking and inserting Capacity-Based ; and Capability-Based in paragraph (4), by striking increased capacity and inserting increased capability .
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Sec. 871
Modifications to current defense acquisition requirements
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