Sec. 236. RESTRUCTURING OF ACQUISITION STRATEGY FOR THEATER HIGH-ALTITUDE AREA DEFENSE (THAAD) SYSTEM

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## SEC. 236 RESTRUCTURING OF ACQUISITION STRATEGY FOR THEATER HIGH-ALTITUDE AREA DEFENSE (THAAD) SYSTEM ###

(a)Continued Independent Review The Secretary of Defense shall take appropriate steps to assure continued independent review, as the Secretary determines is needed, of the Theater High-Altitude Area Defense (THAAD) program. ###

(b)Cost Sharing Arrangement ####

(1)The Secretary of Defense shall contractually establish with the THAAD interceptor prime contractor an appropriate arrangement for sharing between the United States and that contractor the costs for flight test failures of the interceptor missile for the THAAD system beginning with the flight test numbered 9. ####

(2)For purposes of paragraph (1), the term “**THAAD interceptor prime contractor**” means the firm that as of May 14, 1998, is the prime contractor for the interceptor missile for the Theater High-Altitude Area Defense system. ###

(c)Engineering and Manufacturing Development Phase for Other Elements of the THAAD System The Secretary of Defense shall proceed with the milestone approval process for the Engineering and Manufacturing Development phase for the Battle Management and Command, Control, and Communications (BM/C3) element of the THAAD system and for the Ground Based Radar

(GBR)element for that system without regard to the stage of development of the interceptor missile for that system. ###

(d)Plan for Contingency Capability ####

(1)The Secretary of Defense shall prepare a plan that would allow for deployment of THAAD missiles and the other elements of the THAAD system referred to in subsection

(c)in response to theater ballistic missile threats that evolve before United States military forces are equipped with the objective configuration of those missiles and elements. ####

(2)The Secretary shall submit a report on the plan to the congressional defense committees by December 15, 1998. ###

(e)Limitation on Entering Engineering and Manufacturing Development phase ####

(1)The Secretary of Defense may not approve the commencement of the Engineering and Manufacturing Development phase for the interceptor missile for the THAAD system until there have been 3 successful tests of that missile. ####

(2)If the Secretary determines, after a second successful test of the interceptor missile of the THAAD system, that the THAAD program has achieved a sufficient level of technical maturity, the Secretary may waive the limitation specified in paragraph (1). ####

(3)If the Secretary grants a waiver under paragraph (2), the Secretary shall, not later than 60 days after the date of the issuance of the waiver, submit to the congressional defense committees a report describing the technical rationale for that action. ####

(4)For purposes of paragraph (1), a successful test of the interceptor missile of the THAAD system is a body-to-body intercept by that missile of a ballistic missile target.