Sec. 136. PROCUREMENT OF ADVANCED EXTREMELY HIGH FREQUENCY SATELLITES

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## SEC. 136 PROCUREMENT OF ADVANCED EXTREMELY HIGH FREQUENCY SATELLITES ###

(a)Contract Authority ####

(1)In general The Secretary of the Air Force may procure two advanced extremely high frequency satellites by entering into a fixed-price contract. Such procurement may also include— #####

(A)material and equipment in economic order quantities when cost savings are achievable; and #####

(B)cost reduction initiatives. ####

(2)Use of incremental funding With respect to a contract entered into under paragraph

(1)for the procurement of advanced extremely high frequency satellites, the Secretary may use incremental funding for a period not to exceed six fiscal years. ####

(3)Liability A contract entered into under paragraph

(1)shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose, and that the total liability to the Government for termination of any contract entered into shall be limited to the total amount of funding obligated at the time of termination. ###

(b)Limitation of Costs ####

(1)Limitation Except as provided by subsection (c), and excluding amounts described in paragraph (2), the total amount obligated or expended for the procurement of two advanced extremely high frequency satellites authorized by subsection

(a)may not exceed $3,100,000,000. ####

(2)Exclusion The amounts described in this paragraph are amounts associated with the following: #####

(A)Plans. #####

(B)Technical data packages. #####

(C)Post-delivery and program support costs. #####

(D)Technical support for obsolescence studies. ###

(c)Waiver and Adjustment to Limitation Amount ####

(1)Waiver In accordance with paragraph (2), the Secretary may waive the limitation in subsection (b)(1) if the Secretary submits to the congressional defense committees written notification of the adjustment made to the amount set forth in such subsection. ####

(2)Adjustment Upon waiving the limitation under paragraph (1), the Secretary may adjust the amount set forth in subsection (b)(1) by the following: #####

(A)The amounts of increases or decreases in costs attributable to economic inflation after September 30, 2011. #####

(B)The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2011. #####

(C)The amounts of increases or decreases in costs of the satellites that are attributable to insertion of new technology into an advanced extremely high frequency satellite, as compared to the technology built into such a satellite procured prior to fiscal year 2012, if the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology is— ######

(i)expected to decrease the life-cycle cost of the satellite; or ######

(ii)required to meet an emerging threat that poses grave harm to national security. ###

(d)Use of Funds Available for Space Vehicle Number 5 for Space Vehicle Number 6 The Secretary may obligate and expend amounts authorized to be appropriated for fiscal year 2012 by section 101 for procurement for the Air Force as specified in the funding table in section 4101 and available for the advanced procurement of long-lead parts and the replacement of obsolete parts for advanced extremely high frequency satellite space vehicle number 5 for the advanced procurement of long-lead parts and the replacement of obsolete parts for advanced extremely high frequency satellite space vehicle number 6. ###

(e)Report Not later than 30 days after the date on which the Secretary awards a contract under subsection (a), the Secretary shall submit to the congressional defense committees a report on such contract, including the following: ####

(1)The total cost savings resulting from the authority provided by subsection (a). ####

(2)The type and duration of the contract awarded. ####

(3)The total contract value. ####

(4)The funding profile by year. ####

(5)The terms of the contract regarding the treatment of changes by the Federal Government to the requirements of the contract, including how any such changes may affect the success of the contract. ####

(6)A plan for using cost savings described in paragraph

(1)to improve the capability of military satellite communications, including a description of— #####

(A)the available funds, by year, resulting from such cost savings; #####

(B)the specific activities or subprograms to be funded by such cost savings and the funds, by year, allocated to each such activity or subprogram; #####

(C)the objectives for each such activity or subprogram and the criteria used by the Secretary to determine which such activity or subprogram to fund; #####

(D)the method in which such activities or subprograms will be awarded, including whether it will be on a competitive basis; and #####

(E)the process for determining how and when such activities and subprograms would transition to an existing program or be established as a new program of record. ###

(f)Sense of Congress It is the sense of Congress that the Secretary should not enter into a fixed-price contract under subsection

(a)for the procurement of two advanced extremely high frequency satellites unless the Secretary determines that entering into such a contract will save the Air Force not less than 20 percent over the cost of procuring two such satellites separately. ## Subtitle E Joint and Multiservice Matters