[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4741 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 4741
To amend title 10, United States Code, to provide for modular open
system architecture in major defense acquisition programs, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 15, 2016
Mr. Thornberry introduced the following bill; which was referred to the
Committee on Armed Services
_______________________________________________________________________
A BILL
To amend title 10, United States Code, to provide for modular open
system architecture in major defense acquisition programs, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Acquisition
Agility Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Modular open system architecture in development of major weapon
systems.
Sec. 3. Weapon system component development, prototyping, and
deployment.
Sec. 4. Cost, schedule, and performance of major defense acquisition
programs.
Sec. 5. Transparency in major defense acquisition programs.
Sec. 6. Amendments relating to technical data rights.
SEC. 2. MODULAR OPEN SYSTEM ARCHITECTURE IN DEVELOPMENT OF MAJOR WEAPON
SYSTEMS.
(a) In General.--Part IV of subtitle A of title 10, United States
Code, is amended by inserting after chapter 144A the following new
chapter:
``CHAPTER 144B--WEAPON SYSTEMS DEVELOPMENT AND RELATED MATTERS
``Subchapter Sec.
``I. Modular Open System Architecture in Development of 2446a
Weapon Systems.
``II. Weapon System Component Development, Prototyping, and 2447a
Deployment.
``III. Cost, Schedule, and Performance of Major Defense 2448a
Acquisition Programs.
``SUBCHAPTER I--MODULAR OPEN SYSTEM ARCHITECTURE IN DEVELOPMENT OF
WEAPON SYSTEMS
``Sec.
``2446a. Requirement for modular open system architecture in major
defense acquisition programs; definitions.
``2446b. Requirement to address modular open system architecture in
program capabilities development and
acquisition weapon system design.
``2446c. Requirements relating to availability of major system
interfaces and support for modular open
system architecture.
``2446d. Requirement to include modular open system architecture in
Selected Acquisition Reports.
``Sec. 2446a. Requirement for modular open system architecture in major
defense acquisition programs; definitions
``(a) Modular Open System Architecture Requirement.--A major
defense acquisition program initiated after October 1, 2018, shall be
designed and developed with a modular open system architecture to
enable incremental development.
``(b) Definitions.--In this chapter:
``(1) The term `modular open system architecture' means,
with respect to a major defense acquisition program, an
integrated business and technical strategy that--
``(A) employs a modular design and uses, if
available and suitable, widely supported and consensus-
based standards for major system interfaces between the
major system platform being developed under the program
and its major system components;
``(B) is subjected to testing to ensure major
system interfaces comply with widely supported and
consensus-based standards; and
``(C) uses a system architecture that allows major
system components to be incrementally added, removed,
or replaced throughout the life cycle of the major
system platform to afford opportunities for enhanced
competition and innovation while yielding--
``(i) significant cost savings or
avoidance;
``(ii) schedule reduction; or
``(iii) increased interoperability.
``(2) The term `major system platform' means the structure
of a major weapon system on which a major system component can
be mounted or integrated.
``(3) The term `major system component'--
``(A) means a subsystem or assembly that can be
mounted or installed on a major system platform through
well-defined, open major system interfaces; and
``(B) includes a subsystem or assembly that is
likely to have additional capability requirements, is
likely to change because of evolving technology or
threat, is needed for interoperability, facilitates
incremental deployment of capabilities, or is expected
to be replaced.
``(4) The term `major system interface' means a shared
boundary between a major system platform and its major system
components, defined by various characteristics pertaining to--
``(A) physical standards for mounting major system
components;
``(B) functional standards for integrating major
system components, such as electrical, radio frequency,
data, or software elements; and
``(C) open intellectual property rights consistent
with section 2320 of this title.
``(5) The term `program capability document' means, with
respect to a major defense acquisition program, a document that
specifies capability requirements for the program, such as a
capability development document or a capability production
document.
``(6) The terms `program cost target' and `fielding target'
have the meanings provided in section 2448a(a) of this title.
``(7) The term `major defense acquisition program' has the
meaning provided in section 2430 of this title.
``(8) The term `major weapon system' has the meaning
provided in section 2379(f) of this title.
``Sec. 2446b. Requirement to address modular open system architecture
in program capabilities development and acquisition
weapon system design
``(a) Program Capability Document.--A program capability document
for a major defense acquisition program shall identify and
characterize--
``(1) the extent to which requirements for system
performance are likely to evolve during the life cycle of the
system because of evolving technology, threat, or
interoperability needs; and
``(2) for requirements that are expected to evolve, the
minimum acceptable capability that will be available upon
initial operating capability of the major defense acquisition
program.
``(b) Analysis of Alternatives.--The Director of Cost Assessment
and Performance Evaluation, in formulating study guidance for analyses
of alternatives for major defense acquisition programs and performing
such analyses under section 139a(d)(4) of this title, shall ensure that
any such analysis for a major defense acquisition program includes
consideration of an incremental development approach and modular open
system architecture.
``(c) Acquisition Strategy.--An acquisition strategy for a major
defense acquisition program, as required under section 2431a of this
title, shall--
``(1) clearly describe the modular open system architecture
to be used for the program;
``(2) differentiate between the major system platform and
major system components being developed under the program;
``(3) clearly describe the incremental approach to major
system components that are anticipated to meet requirements for
system performance;
``(4) identify additional major system components that may
be added later in the life cycle of the major system platform;
and
``(5) clearly describe how intellectual property and
related issues, such as data deliverables and license rights,
that are necessary to support a modular open system
architecture will be addressed.
``(d) Request for Proposals.--The milestone decision authority for
a major defense acquisition program shall ensure that a request for
proposals for the development or production phases of the program shall
address the modular open system architecture to be used.
``(e) Milestone B.--A major defense acquisition program may not
receive Milestone B approval under section 2366b of this title until
the milestone decision authority determines in writing that--
``(1) the program incorporates a modular open system
architecture with clearly defined major system interfaces
between the major system platform and major system components
to be developed under the program;
``(2) such major system interfaces are consistent with the
widely supported and consensus-based standards that exist at
the time of the milestone decision, unless such standards are
unavailable or unsuitable for particular major system
interfaces; and
``(3) the Government has arranged to obtain appropriate and
necessary intellectual property rights with respect to such
major system interfaces upon completion of the development of
the major system platform.
``Sec. 2446c. Requirements relating to availability of major system
interfaces and support for modular open system
architecture
``The Secretary of each military department shall--
``(1) coordinate with the other military departments, the
defense agencies, defense and other private sector entities,
and national standards-setting organizations with respect to
the identification, development, and maintenance of major
system interfaces and standards for use in major system
platforms, where practicable;
``(2) ensure that major system interfaces incorporate
commercial standards to the maximum extent practicable;
``(3) ensure sufficient systems engineering and development
expertise and resources are available to support modular open
system architecture in requirements development and acquisition
program planning;
``(4) ensure that necessary planning, programming, and
budgeting resources are provided to identify, develop, and
maintain modular open system architecture and associated major
system interfaces; and
``(5) ensure adequate training in modular open system
architecture is provided to members of the requirements and
acquisition workforce.
``Sec. 2446d. Requirement to include modular open system architecture
in Selected Acquisition Reports
``For each major defense acquisition program that receives
Milestone B approval after October 1, 2018, a description of the key
elements of the modular open system architecture or, if a modular open
system architecture was not used, the rationale for not using such an
architecture, shall be submitted to the congressional defense
committees with the first Selected Acquisition Report required under
section 2432 of this title for the program.''.
(b) Clerical Amendment.--The table of chapters for title 10, United
States Code, is amended by adding after the item relating to chapter
144A the following new item:
``144B. Weapon Systems Development and Related Matters...... 2446a''.
(c) Conforming Amendment.--Section 2366b(a)(3) of such title is
amended--
(1) by striking ``and'' at the end of subparagraph (K); and
(2) by inserting after subparagraph (L) the following new
subparagraph:
``(M) the requirements of section 2446b(e) of this
title are met; and''.
(d) Effective Date.--Subchapter I of chapter 144B of title 10,
United States Code, as added by subsection (a), shall take effect on
October 1, 2016.
SEC. 3. WEAPON SYSTEM COMPONENT DEVELOPMENT, PROTOTYPING, AND
DEPLOYMENT.
(a) In General.--Chapter 144B of title 10, United States Code, as
added by section 2, is further amended by adding at the end the
following new subchapter:
``SUBCHAPTER II--WEAPON SYSTEM COMPONENT DEVELOPMENT, PROTOTYPING, AND
DEPLOYMENT
``Sec.
``2447a. Technology development in the acquisition of major weapon
systems.
``2447b. Weapon system component prototype projects: display of budget
information.
``2447c. Weapon system component prototype projects: oversight.
``2447d. Requirements and limitations for weapon system component
prototype projects.
``2447e. Mechanisms to speed deployment of successful weapon system
component prototypes.
``2447f. Definition of weapon system component.
``Sec. 2447a. Technology development in the acquisition of major weapon
systems
``Technology shall be developed in a major defense acquisition
program that is initiated after October 1, 2018, only if the milestone
decision authority for the program determines with a high degree of
confidence that such development will not delay the fielding target of
the program. If the milestone decision authority does not make such
determination for a major system component being developed under the
program, the milestone decision authority shall ensure that technology
related to the major system component shall be sufficiently matured
separate from the major defense acquisition program using the
prototyping authorities of this section or other authorities, as
appropriate.
``Sec. 2447b. Weapon system component prototype projects: display of
budget information
``(a) Requirements for Budget Display.--In the defense budget
materials for any fiscal year after fiscal year 2017, the Secretary of
Defense shall, with respect to advanced component development and
prototype activities (within the research, development, test, and
evaluation budget), set forth separately the amounts requested for each
of the following:
``(1) Acquisition programs of record.
``(2) Experimentation and rapid prototyping of weapon
system components or other technologies and subsystems.
``(3) Other budget line items as determined by the
Secretary of Defense.
``(b) Additional Requirements.--For purposes of subsection (a)(2),
the amounts requested for experimentation and rapid prototyping of
weapon system components or other technologies and subsystems shall
be--
``(1) displayed in separate budget lines structured into
either capability or weapon system component portfolios that
reflect the priority areas for prototype projects; and
``(2) justified with general descriptions of the types of
capability areas and technologies being funded or expected to
be funded during the fiscal year concerned.
``(c) Definitions.--In this section, the terms `budget' and
`defense budget materials' have the meaning given those terms in
section 234 of this title.
``Sec. 2447c. Weapon system component prototype projects: oversight
``(a) Establishment.--The Secretary of each military department
shall establish or appoint an oversight board or similar group of
senior advisors for managing prototype projects for weapon system
components and other technologies and subsystems, including the use of
funds for such projects, within the military department concerned.
``(b) Membership.--Each oversight board shall be comprised of
senior officials with--
``(1) expertise in requirements; research, development,
test, and evaluation; acquisition; or other relevant areas
within the military department concerned; and
``(2) awareness of the component capability requirements of
major weapon systems, including scheduling and fielding goals
for such component capabilities.
``(c) Functions.--The functions of each oversight board are as
follows:
``(1) To issue a strategic plan every three years that
prioritizes the capability and weapon system component
portfolio areas for conducting prototype projects, based on
assessments of high priority warfighter needs, capability gaps
on existing major weapon systems, opportunities to
incrementally integrate new components into major weapon
systems, and technologies that are expected to be sufficiently
mature to prototype within 3 years.
``(2) To annually recommend funding levels for weapon
system component prototype projects across capability or weapon
system component portfolios.
``(3) To annually recommend to the service acquisition
executive of the military department concerned specific weapon
system component prototype projects, subject to the
requirements and limitations in section 2447d of this title.
``(4) To ensure projects are managed by experts within the
Department of Defense who are knowledgeable in research,
development, test, and evaluation and who are aware of
opportunities for incremental deployment of component
capabilities to major weapon systems.
``(5) To ensure projects are conducted in a manner that
allows for appropriate experimentation and technology risk.
``(6) To ensure necessary technical, contracting, and
financial management resources are available to support each
project.
``(7) To submit to the congressional defense committees a
semiannual notification that includes the following:
``(A) A description of each weapon system component
prototype project initiated during the preceding six
months, including an explanation of each project and
its required funding.
``(B) A description of the results achieved from
weapon system component prototype projects completed
and tested during the preceding six months.
``Sec. 2447d. Requirements and limitations for weapon system component
prototype projects
``(a) Limitation on Prototype Project Duration.--A prototype
project shall be completed within three years of its initiation.
``(b) Merit-Based Selection Process.--A prototype project shall be
selected by the service acquisition executive of the military
department concerned through a merit-based selection process that
identifies the most promising and cost-effective prototypes that
address a high priority warfighter need and are expected to be
successfully demonstrated in a relevant environment.
``(c) Type of Transaction.--Prototype projects shall be funded
through contracts, cooperative agreements, or other transactions.
``(d) Funding Limit.--(1) Each prototype project may not exceed a
total amount of $5,000,000 (based on fiscal year 2017 constant
dollars), unless--
``(A) the Secretary of the military department, or the
Secretary's designee, approves a larger amount of funding for
the project, not to exceed $25,000,000; and
``(B) the Secretary, or the Secretary's designee, submits
to the congressional defense committees, within 30 days after
approval of such funding for the project, a notification that
includes--
``(i) a description of the project;
``(ii) expected funding for the project; and
``(iii) a statement of the anticipated outcome of
the project.
``(2) The Secretary of Defense may adjust the amounts (and the base
fiscal year) provided in paragraph (1) on the basis of Department of
Defense escalation rates.
``Sec. 2447e. Mechanisms to speed deployment of successful weapon
system component prototypes
``(a) Selection of Prototype Project for Production.--A weapon
system component or technology prototype project may be selected by the
service acquisition executive of the military department concerned for
a follow-on production contract or other transaction without the use of
competitive procedures, notwithstanding the requirements of section
2304 of this title, if--
``(1) a prototype project addresses a high priority
warfighter need;
``(2) competitive procedures were used for the selection of
parties for participation in the prototype project;
``(3) the participants in the project successfully
completed the project provided for in the transaction; and
``(4) the prototype was demonstrated in a relevant
environment.
``(b) Special Transfer Authority.--(1) The Secretary of a military
department may transfer funds that remain available for obligation in
procurement appropriation accounts of the military department to fund
the low-rate initial production of a prototype until required funding
for full-rate production can be submitted and approved through the
regular budget process of the Department of Defense.
``(2) The funds transferred under this subsection to be used for
production of a prototype shall be for a period not to exceed two
years, the amount for such period may not exceed $10,000,000, and the
special transfer authority provided in this subsection may not be used
more than once to fund procurement of a particular prototype.
``(3) The special transfer authority provided in this subsection is
in addition to any other transfer authority available to the Department
of Defense.
``(c) Notification to Congress.--Within 30 days after the service
acquisition executive of a military department selects a weapon system
component or technology prototype project for a follow-on production
contract or other transaction, the service acquisition executive shall
notify the congressional defense committees of the selection.
``Sec. 2447f. Definition of weapon system component
``In this subchapter, the term `weapon system component' has the
meaning provided the term `major system component' in section 2446a of
this title.''.
(b) Effective Date.--Subchapter II of chapter 144B of title 10,
United States Code, as added by subsection (a), shall take effect on
October 1, 2016.
SEC. 4. COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE ACQUISITION
PROGRAMS.
(a) In General.--Chapter 144B of title 10, United States Code, as
added by section 2, is amended by adding at the end the following new
subchapter:
``SUBCHAPTER III--COST, SCHEDULE, AND PERFORMANCE OF MAJOR DEFENSE
ACQUISITION PROGRAMS
``Sec.
``2448a. Program cost and fielding targets in planning major defense
acquisition programs.
``2448b. Independent technical risk assessments.
``2448c. Adherence to requirements and thresholds in major defense
acquisition programs.
``Sec. 2448a. Program cost and fielding targets in planning major
defense acquisition programs
``(a) Program Cost and Fielding Targets.--Before Milestone A
approval is granted for a major defense acquisition program, the
Secretary of Defense shall ensure the program will be affordable and
fielded when needed by establishing targets for--
``(1) the program acquisition unit cost (referred to in
this section as the `program cost target'; and
``(2) the date for initial operational capability (referred
to in this section as the `fielding target').
``(b) Considerations.--In establishing targets under subsection (a)
for the program, the Secretary of Defense shall consider each of the
following:
``(1) The capability needs and timeframe specified in the
initial capabilities document, opportunities for incremental
deployment of capabilities, and minimum acceptable capability
increments.
``(2) Resources available to fund the development,
production, and life cycle of the program, using a reasonable
estimate of future defense budgets.
``(3) Procurement quantity objectives.
``(4) Trade-offs among cost, schedule, technical risk, and
performance objectives identified in the analysis of
alternatives required under section 2366a of this title.
``(5) The independent cost estimate prepared or approved
under section 2334(a)(6) of this title.
``(6) The independent technical risk assessment conducted
or approved under section 2448b of this title.
``(c) Delegation.--The responsibilities of the Secretary of Defense
in subsection (a) may be delegated only to the Deputy Secretary of
Defense or the Under Secretary of Defense for Acquisition, Technology,
and Logistics.
``(d) Definitions.--In this section:
``(1) The term `program acquisition unit cost' has the
meaning provided in section 2432(a) of this title.
``(2) The term `initial capabilities document' has the
meaning provided in section 2366a(d)(2) of this title.
``Sec. 2448b. Independent technical risk assessments
``(a) In General.--The Under Secretary of Defense for Acquisition,
Technology, and Logistics shall conduct or approve an independent
technical risk assessment for a major defense acquisition program--
``(1) before any decision to grant milestone approval
pursuant to section 2366a or 2366b of this title;
``(2) before any decision to enter into low-rate initial
production or full-rate production; and
``(3) at any other time considered appropriate by the Under
Secretary.
``(b) Categorization of Technical Risk Levels.--The Under Secretary
shall issue guidance and a framework for categorizing the degree of
technical risk in a major defense acquisition program and a major
automated information system.
``Sec. 2448c. Adherence to requirements and thresholds in major defense
acquisition programs
``(a) Capabilities Determination.--The Secretary of the military
department concerned shall ensure that the capability development
document supporting a Milestone A or subsequent milestone for a major
defense acquisition program may not be submitted to the Joint
Requirements Oversight Council for approval until the Chief of the
armed force concerned determines in writing that the requirements in
the document are necessary and realistic in relation to the program
cost and fielding targets established under section 2448a(a) of this
title.
``(b) Compliance With Targets Before Milestone B Approval.--A major
defense acquisition program may not receive Milestone B approval until
the milestone decision authority for the program determines in writing
that the estimated program acquisition unit cost and the estimated date
for initial operational capability for the baseline description for the
program (established under section 2435) do not exceed the program cost
and fielding targets established under section 2448a(a) of this title.
If such estimated cost is higher than the program cost target or if
such estimated date is later than the fielding target, the milestone
decision authority may request that the Secretary of Defense increase
the program cost target or delay the fielding target, as applicable.''.
(b) Effective Date.--Subchapter III of chapter 144B of title 10,
United States Code, as added by subsection (a), shall apply with
respect to major defense acquisition programs that reach Milestone A
after October 1, 2016.
(c) Modification of Milestone Decision Authority.--Effective
October 1, 2016, subsection (d) of section 2430 of title 10, United
States Code, as added by section 825(a) of the National Defense
Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat.
907), is amended--
(1) in paragraph (2)(A), by inserting ``subject to
paragraph (5),'' before ``the Secretary determines''; and
(2) by adding at the end the following new paragraph:
``(5) The authority of the Secretary of Defense to designate an
alternative milestone decision authority for a program with respect to
which the Secretary determines that the program is addressing a joint
requirement, as set forth in paragraph (2)(A), shall apply only for a
major defense acquisition program that reaches Milestone A after
October 1, 2016, and before October 1, 2019.''.
SEC. 5. TRANSPARENCY IN MAJOR DEFENSE ACQUISITION PROGRAMS.
(a) Reports on Milestone Decision Metrics.--Subchapter III of
chapter 144B of title 10, United States Code, as added by section 2, is
amended by adding at the end the following new section:
``Sec. 2448d. Reports on milestone decision metrics
``(a) Report on Milestone A.--Not later than 15 days after granting
Milestone A approval for a major defense acquisition program, the
milestone decision authority for the program shall provide to the
congressional defense committees a brief summary report that contains
the following:
``(1) The program cost and fielding targets established by
the Secretary of Defense under section 2448a(a) of this title.
``(2) The cost and schedule estimates for the program
conducted by the military department concerned.
``(3) The independent cost estimate for the program
conducted or approved under section 2334(a)(6) of this title,
and any independent schedule estimate conducted for the
program.
``(4) A summary of the technical risks associated with the
program, as determined by the military department concerned.
``(5) A summary of the independent technical risk
assessment conducted or approved under section 2448b of this
title.
``(6) A summary of the sufficiency review conducted by the
Director of Cost Assessment and Program Evaluation of the
analysis of alternatives performed for the program (as referred
to in section 2366a(b)(6) of this title).
``(7) Any other information the milestone decision
authority considers relevant.
``(b) Report on Milestone B.--Not later than 15 days after granting
Milestone B approval for a major defense acquisition program, the
milestone decision authority for the program shall provide to the
congressional defense committees a brief summary report that contains
the following:
``(1) The program cost and fielding targets established by
the Secretary of Defense under section 2448a(a) of this title.
``(2) The cost and schedule estimates for the program
conducted by the military department concerned.
``(3) The independent cost estimate for the program
conducted or approved under section 2334(a)(6) of this title,
and any independent schedule estimate conducted for the
program.
``(4) The cost and schedule estimates approved for the
program by the milestone decision authority.
``(5) A summary of the technical risks associated with the
program, as determined by the military department concerned.
``(6) A summary of the independent technical risk
assessment conducted or approved under section 2448b of this
title.
``(7) A list of critical technologies, if any, associated
with the program, that have not been successfully tested in a
relevant environment.
``(8) A statement of whether the preliminary design review
for the program (referred to in section 2366b(a)(1) of this
title) has been completed.
``(9) A statement of whether a modular open system
architecture is being used for the program.
``(10) Any other information the milestone decision
authority considers relevant.
``(c) Report on Milestone C.--Not later than 15 days after granting
Milestone C approval for a major defense acquisition program, the
milestone decision authority for the program shall provide to the
congressional defense committees a brief summary report that contains
the following:
``(1) The cost and schedule estimates for the program
conducted by the military department concerned.
``(2) The independent cost estimate for the program
conducted or approved under section 2334(a)(6) of this title,
and any independent schedule estimate conducted for the
program.
``(3) The cost and schedule estimates approved by the
milestone decision authority for the program.
``(4) A summary of the production, manufacturing, and
fielding risks associated with the program.
``(d) Additional Information.--At the request of any of the
congressional defense committees, the milestone decision authority
shall submit to the committee further information or underlying
documentation for the information in a report submitted under
subsection (a), (b), or (c), including the independent cost and
schedule estimates and the independent technical risk assessments
referred to in those subsections.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by adding at the end the following new item:
``2448d. Reports on milestone decision metrics.''.
SEC. 6. AMENDMENTS RELATING TO TECHNICAL DATA RIGHTS.
(a) Rights Relating to Item or Process Developed Exclusively at
Private Expense.--
(1) Subsection (a)(2)(C) of section 2320 of title 10,
United States Code, is amended--
(A) by striking clause (ii) and inserting the
following:
``(ii) relates to form, fit, function, or the
external interface of an item or process with other
items or processes, including any major system
interface of a major system component with a major
system platform or other major system component;''; and
(B) in clause (iii), by inserting after ``or
process data'' the following: ``, including data
pertaining to a major system component''.
(2) Subsection (a)(2)(D)(i) of such section is amended--
(A) by inserting ``or'' at the end of subclause
(I);
(B) by striking subclause (II); and
(C) by redesignating subclause (III) as subclause
(II).
(b) Rights Relating to Item or Process Developed in Part With
Federal Funds and in Part at Private Expense.--Subsection (a)(2) of
section 2320 of such title is further amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively;
(2) in subparagraph (E), by striking ``In the case of'' and
inserting ``Except as provided in subparagraph (F), in the case
of''; and
(3) by inserting after subparagraph (E) the following new
subparagraph (F):
``(F) Notwithstanding subparagraph (E), in the case of an
external interface that is developed in part with Federal funds
and in part at private expense, the United States shall have
unlimited rights to--
``(i) use technical data pertaining to such
external interface; or
``(ii) release or disclose the technical data to
persons outside the government or permit the use of the
technical data by such persons.''.
(c) Definitions.--Section 2320 of such title is further amended--
(1) in subsection (f), by inserting ``Covered Government
Support Contractor Defined.--'' before ``In this section''; and
(2) by adding at the end the following new subsection:
``(g) Additional Definitions.--In this section, the terms `major
system platform', `major system component', and `major system
interface' have the meanings provided in section 2446a of this
title.''.
(d) Government-Industry Advisory Panel Amendments.--Section 813(b)
of the National Defense Authorization Act for Fiscal Year 2016 (Public
Law 114-92; 129 Stat. 892) is amended--
(1) by adding at the end of the paragraph (1) the
following: ``The panel shall develop recommendations for
changes to sections 2320 and 2321 of title 10, United States
Code, and the regulations implementing such sections.'';
(2) in paragraph (3)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the
following new subparagraph (D):
``(D) Ensuring that the Department of Defense and
Department of Defense contractors have the technical
data rights necessary to support the modular open
system architecture requirement set forth in section
2446a of title 10, United States Code, taking into
consideration the distinct characteristics of major
system platforms, major system interfaces, and major
system components developed exclusively with Federal
funds, exclusively at private expense, and with a
combination of Federal funds and private expense.'';
and
(3) in paragraph (4), by striking ``September 30, 2016''
and inserting ``December 15, 2016''.
(e) Amendment Relating to Negotiated Rights for Item or Process
Developed With Mixed Funding.--Subsection (a)(2)(E) of section 2320 of
title 10, United States Code, is further amended by striking the period
at the end of the first sentence in the matter preceding clause (i) and
all that follows through ``establishment of any such negotiated rights
shall'' and inserting ``and shall be based on negotiations between the
United States and the contractor, except in any case in which the
Secretary of Defense determines, on the basis of criteria established
in the regulations, that negotiations would not be practicable. The
establishment of such rights shall''.
(f) Amendment Relating to Deferred Ordering.--Subsection (b)(9) of
section 2320 of such title is amended--
(1) by striking ``at any time'' and inserting ``, until the
date occurring five years after acceptance of the last item
(other than technical data) under a contract or the date of
contract termination, whichever is later,'';
(2) by striking ``or utilized in the performance of a
contract'' and inserting ``in the performance of the
contract''; and
(3) by striking clause (ii) of subparagraph (B) and
inserting the following:
``(ii) is described in subsection
(a)(2)(C); and''.
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