Text: S.454 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-23 (05/22/2009)

 
[111th Congress Public Law 23]
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[[Page 1703]]

              WEAPON SYSTEMS ACQUISITION REFORM ACT OF 2009

[[Page 123 STAT. 1704]]

Public Law 111-23
111th Congress

                                 An Act


 
To improve the organization and procedures of the Department of Defense 
       for the acquisition of major weapon systems, and for other 
              purposes. <<NOTE: May 22, 2009 -  [S. 454]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Weapon Systems 
Acquisition Reform Act of 2009.>> 
SECTION 1. <<NOTE: 10 USC 101 note.>> SHORT TITLE; TABLE OF 
                              CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Weapon Systems 
Acquisition Reform Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                    TITLE I--ACQUISITION ORGANIZATION

Sec. 101. Cost assessment and program evaluation.
Sec. 102. Directors of Developmental Test and Evaluation and Systems 
           Engineering.
Sec. 103. Performance assessments and root cause analyses for major 
           defense acquisition programs.
Sec. 104. Assessment of technological maturity of critical technologies 
           of major defense acquisition programs by the Director of 
           Defense Research and Engineering.
Sec. 105. Role of the commanders of the combatant commands in 
           identifying joint military requirements.

                      TITLE II--ACQUISITION POLICY

Sec. 201. Consideration of trade-offs among cost, schedule, and 
           performance objectives in Department of Defense acquisition 
           programs.
Sec. 202. Acquisition strategies to ensure competition throughout the 
           lifecycle of major defense acquisition programs.
Sec. 203. Prototyping requirements for major defense acquisition 
           programs.
Sec. 204. Actions to identify and address systemic problems in major 
           defense acquisition programs prior to Milestone B approval.
Sec. 205. Additional requirements for certain major defense acquisition 
           programs.
Sec. 206. Critical cost growth in major defense acquisition programs.
Sec. 207. Organizational conflicts of interest in major defense 
           acquisition programs.

              TITLE III--ADDITIONAL ACQUISITION PROVISIONS

Sec. 301. Awards for Department of Defense personnel for excellence in 
           the acquisition of products and services.
Sec. 302. Earned value management.
Sec. 303. Expansion of national security objectives of the national 
           technology and industrial base.
Sec. 304. Comptroller General of the United States reports on costs and 
           financial information regarding major defense acquisition 
           programs.

SEC. 2. <<NOTE: 10 USC 2430 note.>> DEFINITIONS.

    In this Act:
            (1) The term ``congressional defense committees'' has the 
        meaning given that term in section 101(a)(16) of title 10, 
        United States Code.

[[Page 123 STAT. 1705]]

            (2) The term ``major defense acquisition program'' has the 
        meaning given that term in section 2430 of title 10, United 
        States Code.
            (3) The term ``major weapon system'' has the meaning given 
        that term in section 2379(d) of title 10, United States Code.

                    TITLE I--ACQUISITION ORGANIZATION

SEC. 101. COST ASSESSMENT AND PROGRAM EVALUATION.

    (a) Director of Cost Assessment and Program Evaluation.--
            (1) In general.--Chapter 4 of title 10, United States Code, 
        is amended by inserting after section 139b the following new 
        section:
``Sec. 139c. Director of Cost Assessment and Program Evaluation

    ``(a) Appointment.--There <<NOTE: President.>> is a Director of Cost 
Assessment and Program Evaluation in the Department of Defense, 
appointed by the President, by and with the advice and consent of the 
Senate.

    ``(b) Independent Advice to Secretary of Defense.--(1) The Director 
of Cost Assessment and Program Evaluation is the principal advisor to 
the Secretary of Defense and other senior officials of the Department of 
Defense, and shall provide independent analysis and advice to such 
officials, on the following matters:
            ``(A) Matters assigned to the Director pursuant to this 
        section and section 2334 of this title.
            ``(B) Matters assigned to the Director by the Secretary 
        pursuant to section 113 of this title.

    ``(2) The Director may communicate views on matters within the 
responsibility of the Director directly to the Secretary of Defense and 
the Deputy Secretary of Defense without obtaining the approval or 
concurrence of any other official within the Department of Defense.
    ``(c) Deputy Directors.--There are two Deputy Directors within the 
Office of the Director of Cost Assessment and Program Evaluation, as 
follows:
            ``(1) The Deputy Director for Cost Assessment.
            ``(2) The Deputy Director for Program Evaluation.

    ``(d) Responsibilities.--The Director of Cost Assessment and Program 
Evaluation shall serve as the principal official within the senior 
management of the Department of Defense for the following:
            ``(1) Cost estimation and cost analysis for acquisition 
        programs of the Department of Defense, and carrying out the 
        duties assigned pursuant to section 2334 of this title.
            ``(2) Analysis and advice on matters relating to the 
        planning and programming phases of the Planning, Programming, 
        Budgeting and Execution system, and the preparation of materials 
        and guidance for such system, as directed by the Secretary of 
        Defense, working in coordination with the Under Secretary of 
        Defense (Comptroller).
            ``(3) Analysis and advice for resource discussions relating 
        to requirements under consideration in the Joint Requirements 
        Oversight Council pursuant to section 181 of this title.

[[Page 123 STAT. 1706]]

            ``(4) Formulation of study guidance for analyses of 
        alternatives for major defense acquisition programs and 
        performance of such analyses, as directed by the Secretary of 
        Defense
            ``(5) Review, analysis, and evaluation of programs for 
        executing approved strategies and policies, ensuring that 
        information on programs is presented accurately and completely, 
        and assessing the effect of spending by the Department of 
        Defense on the United States economy.
            ``(6) Assessments of special access and compartmented 
        intelligence programs, in coordination with the Under Secretary 
        of Defense for Acquisition, Technology, and Logistics and the 
        Under Secretary of Defense for Intelligence and in accordance 
        with applicable policies.
            ``(7) Assessments of alternative plans, programs, and 
        policies with respect to the acquisition programs of the 
        Department of Defense.
            ``(8) Leading the development of improved analytical skills 
        and competencies within the cost assessment and program 
        evaluation workforce of the Department of Defense and improved 
        tools, data, and methods to promote performance, economy, and 
        efficiency in analyzing national security planning and the 
        allocation of defense resources.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 4 of such title is amended by inserting 
        after the item relating to section 139b the following new item:

``139c. Director of Cost Assessment and Program Evaluation.''.

            (3) Executive schedule level iv.--Section 5315 of title 5, 
        United States Code, is amended by inserting after the item 
        relating to the Director of Operational Test and Evaluation, 
        Department of Defense the following new item:
            ``Director of Cost Assessment and Program Evaluation, 
        Department of Defense.''.

    (b) Independent Cost Estimation and Cost Analysis.--
            (1) In general.--Chapter 137 of title 10, United States 
        Code, is amended by adding at the end the following new section:
``Sec. 2334. Independent cost estimation and cost analysis

    ``(a) In General.--The Director of Cost Assessment and Program 
Evaluation shall ensure that the cost estimation and cost analysis 
processes of the Department of Defense provide accurate information and 
realistic estimates of cost for the acquisition programs of the 
Department of Defense. In carrying out that responsibility, the Director 
shall--
            ``(1) <<NOTE: Policies.>> prescribe, by authority of the 
        Secretary of Defense, policies and procedures for the conduct of 
        cost estimation and cost analysis for the acquisition programs 
        of the Department of Defense;
            ``(2) <<NOTE: Consultation.>> provide guidance to and 
        consult with the Secretary of Defense, the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, the Under 
        Secretary of Defense (Comptroller), the Secretaries of the 
        military departments, and the heads of the Defense Agencies with 
        respect to cost estimation in the Department of Defense in 
        general and with respect to specific cost estimates and cost 
        analyses to be conducted in connection with a major defense 
        acquisition program

[[Page 123 STAT. 1707]]

        under chapter 144 of this title or a major automated information 
        system program under chapter 144A of this title;
            ``(3) issue guidance relating to the proper selection of 
        confidence levels in cost estimates generally, and specifically, 
        for the proper selection of confidence levels in cost estimates 
        for major defense acquisition programs and major automated 
        information system programs;
            ``(4) issue guidance relating to full consideration of life-
        cycle management and sustainability costs in major defense 
        acquisition programs and major automated information system 
        programs;
            ``(5) review all cost estimates and cost analyses conducted 
        in connection with major defense acquisition programs and major 
        automated information system programs;
            ``(6) conduct independent cost estimates and cost analyses 
        for major defense acquisition programs and major automated 
        information system programs for which the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics is the 
        Milestone Decision Authority--
                    ``(A) in advance of--
                          ``(i) any certification under section 2366a or 
                      2366b of this title;
                          ``(ii) any decision to enter into low-rate 
                      initial production or full-rate production;
                          ``(iii) any certification under section 2433a 
                      of this title; and
                          ``(iv) any report under section 2445c(f) of 
                      this title; and
                    ``(B) at any other time considered appropriate by 
                the Director or upon the request of the Under Secretary 
                of Defense for Acquisition, Technology, and Logistics; 
                and
            ``(7) <<NOTE: Assessments.>> periodically assess and update 
        the cost indexes used by the Department to ensure that such 
        indexes have a sound basis and meet the Department's needs for 
        realistic cost estimation.

    ``(b) Review of Cost Estimates, Cost Analyses, and Records of the 
Military Departments and Defense Agencies.--The Secretary of Defense 
shall ensure that the Director of Cost Assessment and Program 
Evaluation--
            ``(1) promptly receives the results of all cost estimates 
        and cost analyses conducted by the military departments and 
        Defense Agencies, and all studies conducted by the military 
        departments and Defense Agencies in connection with such cost 
        estimates and cost analyses, for major defense acquisition 
        programs and major automated information system programs of the 
        military departments and Defense Agencies; and
            ``(2) has timely access to any records and data in the 
        Department of Defense (including the records and data of each 
        military department and Defense Agency and including classified 
        and proprietary information) that the Director considers 
        necessary to review in order to carry out any duties under this 
        section.

    ``(c) Participation, Concurrence, and Approval in Cost Estimation.--
The Director of Cost Assessment and Program Evaluation may--
            ``(1) participate in the discussion of any discrepancies 
        between an independent cost estimate and the cost estimate

[[Page 123 STAT. 1708]]

        of a military department or Defense Agency for a major defense 
        acquisition program or major automated information system 
        program of the Department of Defense;
            ``(2) comment on deficiencies in the methodology or 
        execution of any cost estimate or cost analysis developed by a 
        military department or Defense Agency for a major defense 
        acquisition program or major automated information system 
        program;
            ``(3) concur in the choice of a cost estimate within the 
        baseline description or any other cost estimate (including the 
        confidence level for any such cost estimate) for use at any 
        event specified in subsection (a)(6); and
            ``(4) participate in the consideration of any decision to 
        request authorization of a multiyear procurement contract for a 
        major defense acquisition program.

    ``(d) Disclosure of Confidence Levels for Baseline Estimates of 
Major Defense Acquisition Programs.--The Director of Cost Assessment and 
Program Evaluation, and the Secretary of the military department 
concerned or the head of the Defense Agency concerned (as applicable), 
shall each--
            ``(1) disclose in accordance with paragraph (2) the 
        confidence level used in establishing a cost estimate for a 
        major defense acquisition program or major automated information 
        system program, the rationale for selecting such confidence 
        level, and, if such confidence level is less than 80 percent, 
        the justification for selecting a confidence level of less than 
        80 percent; and
            ``(2) include the disclosure required by paragraph (1)--
                    ``(A) in any decision documentation approving a cost 
                estimate within the baseline description or any other 
                cost estimate for use at any event specified in 
                subsection (a)(6); and
                    ``(B) in the next Selected Acquisition Report 
                pursuant to section 2432 of this title in the case of a 
                major defense acquisition program, or the next quarterly 
                report pursuant to section 2445c of this title in the 
                case of a major automated information system program.

    ``(e) Annual Report on Cost Assessment Activities.--(1) The Director 
of Cost Assessment and Program Evaluation shall prepare an annual report 
summarizing the cost estimation and cost analysis activities of the 
Department of Defense during the previous year and assessing the 
progress of the Department in improving the accuracy of its cost 
estimates and analyses. Each report shall include, for the year covered 
by such report, an assessment of--
            ``(A) the extent to which each of the military departments 
        and Defense Agencies have complied with policies, procedures, 
        and guidance issued by the Director with regard to the 
        preparation of cost estimates for major defense acquisition 
        programs and major automated information systems;
            ``(B) the overall quality of cost estimates prepared by each 
        of the military departments and Defense Agencies for major 
        defense acquisition programs and major automated information 
        system programs; and
            ``(C) any consistent differences in methodology or approach 
        among the cost estimates prepared by the military departments, 
        the Defense Agencies, and the Director.

[[Page 123 STAT. 1709]]

    ``(2) Each report under this subsection shall be submitted 
concurrently to the Secretary of Defense, the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, the Under Secretary of 
Defense (Comptroller), and the congressional defense committees not 
later than 10 days after the transmittal to Congress of the budget of 
the President for the next fiscal year (as submitted pursuant to section 
1105 of title 31).
    ``(3)(A) Each report submitted to the congressional defense 
committees under this subsection shall be submitted in unclassified 
form, but may include a classified annex.
    ``(B) The Director shall ensure that a report submitted under this 
subsection does not include any information, such as proprietary or 
source selection sensitive information, that could undermine the 
integrity of the acquisition process.
    ``(C) <<NOTE: Internet posting. Public information.>> The 
unclassified version of each report submitted to the congressional 
defense committees under this subsection shall be posted on an Internet 
website of the Department of Defense that is available to the public.

    ``(4) The Secretary of Defense may comment on any report of the 
Director to the congressional defense committees under this subsection.
    ``(f) Staff.--The Secretary of Defense shall ensure that the 
Director of Cost Assessment and Program Evaluation has sufficient 
professional staff of military and civilian personnel to enable the 
Director to carry out the duties and responsibilities of the Director 
under this section.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 137 of such title is amended by adding at 
        the end the following new item:

``2334. Independent cost estimation and cost analysis.''.

    (c) Transfer <<NOTE: 10 USC 139c note.>> of Personnel and 
Functions.--
            (1) Transfer of functions.--The functions of the Office of 
        Program Analysis and Evaluation of the Department of Defense, 
        including the functions of the Cost Analysis Improvement Group, 
        are hereby transferred to the Office of the Director of Cost 
        Assessment and Program Evaluation.
            (2) Transfer of personnel to deputy director for independent 
        cost assessment.--The personnel of the Cost Analysis Improvement 
        Group are hereby transferred to the Deputy Director for Cost 
        Assessment in the Office of the Director of Cost Assessment and 
        Program Evaluation.
            (3) Transfer of personnel to deputy director for program 
        analysis and evaluation.--The personnel (other than the 
        personnel transferred under paragraph (2)) of the Office of 
        Program Analysis and Evaluation are hereby transferred to the 
        Deputy Director for Program Evaluation in the Office of the 
        Director of Cost Assessment and Program Evaluation.

    (d) Conforming Amendments.--
            (1) Section 181(d) of title 10, United States Code, is 
        amended by striking ``Director of the Office of Program Analysis 
        and Evaluation'' and inserting ``Director of Cost Assessment and 
        Program Evaluation''.
            (2) Section 2306b(i)(1)(B) of such title is amended by 
        striking ``Cost Analysis Improvement Group of the Department of 
        Defense'' and inserting ``Director of Cost Assessment and 
        Program Analysis''.

[[Page 123 STAT. 1710]]

            (3) Section 2366a(a)(4) of such title is amended by 
        inserting ``, with the concurrence of the Director of Cost 
        Assessment and Program Evaluation,'' after ``has been 
        submitted''.
            (4) Section 2366b(a)(1)(C) of such title is amended by 
        inserting ``, with the concurrence of the Director of Cost 
        Assessment and Program Evaluation,'' after ``have been developed 
        to execute''.
            (5) Subparagraph (A) of section 2434(b)(1) of such title is 
        amended to read as follows:

    ``(A) be prepared or approved by the Director of Cost Assessment and 
Program Evaluation; and''.
            (6) Section 2445c(f)(3) of such title is amended by striking 
        ``are reasonable'' and inserting ``have been determined, with 
        the concurrence of the Director of Cost Assessment and Program 
        Evaluation, to be reasonable''.

    (e) Report on Monitoring of Operating and Support Costs for Major 
Defense Acquisition Programs.--
            (1) Report <<NOTE: Review.>> to secretary of defense.--Not 
        later than one year after the date of the enactment of this Act, 
        the Director of Cost Assessment and Program Evaluation under 
        section 139c of title 10 United States Code (as added by 
        subsection (a)), shall review existing systems and methods of 
        the Department of Defense for tracking and assessing operating 
        and support costs on major defense acquisition programs and 
        submit to the Secretary of Defense a report on the finding and 
        recommendations of the Director as a result of the review, 
        including an assessment by the Director of the feasibility and 
        advisability of establishing baselines for operating and support 
        costs under section 2435 of title 10, United States Code.
            (2) Transmittal to congress.--Not later than 30 days after 
        receiving the report required by paragraph (1), the Secretary 
        shall transmit the report to the congressional defense 
        committees, together with any comments on the report the 
        Secretary considers appropriate.
SEC. 102. DIRECTORS OF DEVELOPMENTAL TEST AND EVALUATION AND 
                        SYSTEMS ENGINEERING.

    (a) In General.--
            (1) Establishment of positions.--Chapter 4 of title 10, 
        United States Code, as amended by section 101(a) of this Act, is 
        further amended by inserting after section 139c the following 
        new section:
``Sec. 139d. Director of Developmental Test and Evaluation; 
                  Director of Systems Engineering: joint guidance

    ``(a) Director of Developmental Test and Evaluation.--
            ``(1) Appointment.--There is a Director of Developmental 
        Test and Evaluation, who shall be appointed by the Secretary of 
        Defense from among individuals with an expertise in test and 
        evaluation.
            ``(2) Principal advisor for developmental test and 
        evaluation.--The Director shall be the principal advisor to the 
        Secretary of Defense and the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics on developmental test and 
        evaluation in the Department of Defense.
            ``(3) Supervision.--The Director shall be subject to the 
        supervision of the Under Secretary of Defense for Acquisition,

[[Page 123 STAT. 1711]]

        Technology, and Logistics and shall report to the Under 
        Secretary.
            ``(4) Coordination with director of systems engineering.--
        The Director of Developmental Test and Evaluation shall closely 
        coordinate with the Director of Systems Engineering to ensure 
        that the developmental test and evaluation activities of the 
        Department of Defense are fully integrated into and consistent 
        with the systems engineering and development planning processes 
        of the Department.
            ``(5) Duties.--The Director shall--
                    ``(A) <<NOTE: Policies.>> develop policies and 
                guidance for--
                          ``(i) the conduct of developmental test and 
                      evaluation in the Department of Defense (including 
                      integration and developmental testing of 
                      software);
                          ``(ii) in coordination with the Director of 
                      Operational Test and Evaluation, the integration 
                      of developmental test and evaluation with 
                      operational test and evaluation;
                          ``(iii) the conduct of developmental test and 
                      evaluation conducted jointly by more than one 
                      military department or Defense Agency;
                    ``(B) review and approve the developmental test and 
                evaluation plan within the test and evaluation master 
                plan for each major defense acquisition program of the 
                Department of Defense;
                    ``(C) monitor and review the developmental test and 
                evaluation activities of the major defense acquisition 
                programs;
                    ``(D) provide advocacy, oversight, and guidance to 
                elements of the acquisition workforce responsible for 
                developmental test and evaluation;
                    ``(E) periodically review the organizations and 
                capabilities of the military departments with respect to 
                developmental test and evaluation and identify needed 
                changes or improvements to such organizations and 
                capabilities, and provide input regarding needed changes 
                or improvements for the test and evaluation strategic 
                plan developed in accordance with section 196(d) of this 
                title; and
                    ``(F) perform such other activities relating to the 
                developmental test and evaluation activities of the 
                Department of Defense as the Under Secretary of Defense 
                for Acquisition, Technology, and Logistics may 
                prescribe.
            ``(6) Access to records.--The Secretary of Defense shall 
        ensure that the Director has access to all records and data of 
        the Department of Defense (including the records and data of 
        each military department and including classified and propriety 
        information, as appropriate) that the Director considers 
        necessary in order to carry out the Director's duties under this 
        subsection.
            ``(7) Concurrent service as director of department of 
        defense test resources management center.--The individual 
        serving as the Director of Developmental Test and Evaluation may 
        also serve concurrently as the Director of the Department of 
        Defense Test Resource Management Center under section 196 of 
        this title.

    ``(b) Director of Systems Engineering.--

[[Page 123 STAT. 1712]]

            ``(1) Appointment.--There is a Director of Systems 
        Engineering, who shall be appointed by the Secretary of Defense 
        from among individuals with an expertise in systems engineering 
        and development planning.
            ``(2) Principal advisor for systems engineering and 
        development planning.--The Director shall be the principal 
        advisor to the Secretary of Defense and the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics on systems 
        engineering and development planning in the Department of 
        Defense.
            ``(3) Supervision.--The Director shall be subject to the 
        supervision of the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics and shall report to the Under 
        Secretary.
            ``(4) Coordination with director of developmental test and 
        evaluation.--The Director of Systems Engineering shall closely 
        coordinate with the Director of Developmental Test and 
        Evaluation to ensure that the developmental test and evaluation 
        activities of the Department of Defense are fully integrated 
        into and consistent with the systems engineering and development 
        planning processes of the Department.
            ``(5) Duties.--The Director shall--
                    ``(A) <<NOTE: Policies.>> develop policies and 
                guidance for--
                          ``(i) the use of systems engineering 
                      principles and best practices, generally;
                          ``(ii) the use of systems engineering 
                      approaches to enhance reliability, availability, 
                      and maintainability on major defense acquisition 
                      programs;
                          ``(iii) the development of systems engineering 
                      master plans for major defense acquisition 
                      programs including systems engineering 
                      considerations in support of lifecycle management 
                      and sustainability; and
                          ``(iv) the inclusion of provisions relating to 
                      systems engineering and reliability growth in 
                      requests for proposals;
                    ``(B) review and approve the systems engineering 
                master plan for each major defense acquisition program;
                    ``(C) monitor and review the systems engineering and 
                development planning activities of the major defense 
                acquisition programs;
                    ``(D) provide advocacy, oversight, and guidance to 
                elements of the acquisition workforce responsible for 
                systems engineering, development planning, and lifecycle 
                management and sustainability functions;
                    ``(E) provide input on the inclusion of systems 
                engineering requirements in the process for 
                consideration of joint military requirements by the 
                Joint Requirements Oversight Council pursuant to section 
                181 of this title, including specific input relating to 
                each capabilities development document;
                    ``(F) periodically review the organizations and 
                capabilities of the military departments with respect to 
                systems engineering, development planning, and lifecycle 
                management and sustainability, and identify needed 
                changes or improvements to such organizations and 
                capabilities; and

[[Page 123 STAT. 1713]]

                    ``(G) perform such other activities relating to the 
                systems engineering and development planning activities 
                of the Department of Defense as the Under Secretary of 
                Defense for Acquisition, Technology, and Logistics may 
                prescribe.
            ``(6) Access to records.--The Director shall have access to 
        any records or data of the Department of Defense (including the 
        records and data of each military department and including 
        classified and proprietary information as appropriate) that the 
        Director considers necessary to review in order to carry out the 
        Director's duties under this subsection.

    ``(c) Joint Annual Report.--Not <<NOTE: Effective date.>> later than 
March 31 each year, beginning in 2010, the Director of Developmental 
Test and Evaluation and the Director of Systems Engineering shall 
jointly submit to the congressional defense committees a report on the 
activities undertaken pursuant to subsections (a) and (b) during the 
preceding year. Each report shall include a section on activities 
relating to the major defense acquisition programs which shall set 
forth, at a minimum, the following:
            ``(1) A discussion of the extent to which the major defense 
        acquisition programs are fulfilling the objectives of their 
        systems engineering master plans and developmental test and 
        evaluation plans.
            ``(2) A discussion of the waivers of and deviations from 
        requirements in test and evaluation master plans, systems 
        engineering master plans, and other testing requirements that 
        occurred during the preceding year with respect to such 
        programs, any concerns raised by such waivers or deviations, and 
        the actions that have been taken or are planned to be taken to 
        address such concerns.
            ``(3) An assessment of the organization and capabilities of 
        the Department of Defense for systems engineering, development 
        planning, and developmental test and evaluation with respect to 
        such programs.
            ``(4) Any comments on such report that the Secretary of 
        Defense considers appropriate.

    ``(d) Joint Guidance.--The Director of Developmental Test and 
Evaluation and the Director of Systems Engineering shall jointly, in 
coordination with the official designated by the Secretary of Defense 
under section 103 of the Weapon Systems Acquisition Reform Act of 2009, 
issue guidance on the following:
            ``(1) The development and tracking of detailed measurable 
        performance criteria as part of the systems engineering master 
        plans and the developmental test and evaluation plans within the 
        test and evaluation master plans of major defense acquisition 
        programs.
            ``(2) The use of developmental test and evaluation to 
        measure the achievement of specific performance objectives 
        within a systems engineering master plan.
            ``(3) A system for storing and tracking information relating 
        to the achievement of the performance criteria and objectives 
        specified pursuant to this subsection.

    ``(e) Major Defense Acquisition Program Defined.--In this section, 
the term `major defense acquisition program' has the meaning given that 
term in section 2430 of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 4 of such title, as amended by section

[[Page 123 STAT. 1714]]

        101(a) of this Act, is further amended by inserting after the 
        item relating to section 139c the following new item:

``139d. Director of Developmental Test and Evaluation; Director of 
           Systems Engineering: joint guidance.''.

    (b) Developmental <<NOTE: 10 USC 2430 note.>> Test and Evaluation 
and Systems Engineering in the Military Departments and Defense 
Agencies.--
            (1) Plans.--The service acquisition executive of each 
        military department and each Defense Agency with responsibility 
        for a major defense acquisition program shall develop and 
        implement plans to ensure the military department or Defense 
        Agency concerned has provided appropriate resources for each of 
        the following:
                    (A) Developmental testing organizations with 
                adequate numbers of trained personnel in order to--
                          (i) ensure that developmental testing 
                      requirements are appropriately addressed in the 
                      translation of operational requirements into 
                      contract specifications, in the source selection 
                      process, and in the preparation of requests for 
                      proposals on all major defense acquisition 
                      programs;
                          (ii) participate in the planning of 
                      developmental test and evaluation activities, 
                      including the preparation and approval of a 
                      developmental test and evaluation plan within the 
                      test and evaluation master plan for each major 
                      defense acquisition program; and
                          (iii) participate in and oversee the conduct 
                      of developmental testing, the analysis of data, 
                      and the preparation of evaluations and reports 
                      based on such testing.
                    (B) Development planning and systems engineering 
                organizations with adequate numbers of trained personnel 
                in order to--
                          (i) support key requirements, acquisition, and 
                      budget decisions made for each major defense 
                      acquisition program prior to Milestone A approval 
                      and Milestone B approval through a rigorous 
                      systems analysis and systems engineering process;
                          (ii) include a robust program for improving 
                      reliability, availability, maintainability, and 
                      sustainability as an integral part of design and 
                      development within the systems engineering master 
                      plan for each major defense acquisition program; 
                      and
                          (iii) identify systems engineering 
                      requirements, including reliability, availability, 
                      maintainability, and lifecycle management and 
                      sustainability requirements, during the Joint 
                      Capabilities Integration Development System 
                      process, and incorporate such systems engineering 
                      requirements into contract requirements for each 
                      major defense acquisition program.
            (2) Reports by service acquisition executives.--Not later 
        than 180 days after the date of the enactment of this Act, the 
        service acquisition executive of each military department and 
        each Defense Agency with responsibility for a major defense 
        acquisition program shall submit to the Director of

[[Page 123 STAT. 1715]]

        Developmental Test and Evaluation and the Director of Systems 
        Engineering a report on the extent to which--
                    (A) such military department or Defense Agency has 
                implemented, or is implementing, the plan required by 
                paragraph (1); and
                    (B) additional authorities or resources are needed 
                to attract, develop, retain, and reward developmental 
                test and evaluation personnel and systems engineers with 
                appropriate levels of hands-on experience and technical 
                expertise to meet the needs of such military department 
                or Defense Agency.
            (3) Assessment of reports by directors of developmental test 
        and evaluation and systems engineering.--The first annual report 
        submitted to Congress by the Director of Developmental Test and 
        Evaluation and the Director of Systems Engineering under section 
        139d(c) of title 10, United States Code (as added by subsection 
        (a)), shall include an assessment by the Directors of the 
        reports submitted by the service acquisition executives to the 
        Directors under paragraph (2).
SEC. 103. <<NOTE: 10 USC 2430 note.>> PERFORMANCE ASSESSMENTS AND 
                        ROOT CAUSE ANALYSES FOR MAJOR DEFENSE 
                        ACQUISITION PROGRAMS.

    (a) Designation of Senior Official Responsibility for Performance 
Assessments and Root Cause Analyses.--
            (1) In general.--The Secretary of Defense shall designate a 
        senior official in the Office of the Secretary of Defense as the 
        principal official of the Department of Defense responsible for 
        conducting and overseeing performance assessments and root cause 
        analyses for major defense acquisition programs.
            (2) No program execution responsibility.--The Secretary 
        shall ensure that the senior official designated under paragraph 
        (1) is not responsible for program execution.
            (3) Staff and resources.--The Secretary shall assign to the 
        senior official designated under paragraph (1) appropriate staff 
        and resources necessary to carry out official's function under 
        this section.

    (b) Responsibilities.--The senior official designated under 
subsection (a) shall be responsible for the following:
            (1) Carrying out performance assessments of major defense 
        acquisition programs in accordance with the requirements of 
        subsection (c) periodically or when requested by the Secretary 
        of Defense, the Under Secretary of Defense for Acquisition, 
        Technology and Logistics, the Secretary of a military 
        department, or the head of a Defense Agency.
            (2) Conducting root cause analyses for major defense 
        acquisition programs in accordance with the requirements of 
        subsection (d) when required by section 2433a(a)(1) of title 10, 
        United States Code (as added by section 206(a) of this Act), or 
        when requested by the Secretary of Defense, the Under Secretary 
        of Defense for Acquisition, Technology and Logistics, the 
        Secretary of a military department, or the head of a Defense 
        Agency.
            (3) Issuing policies, procedures, and guidance governing the 
        conduct of performance assessments and root cause analyses by 
        the military departments and the Defense Agencies.

[[Page 123 STAT. 1716]]

            (4) Evaluating the utility of performance metrics used to 
        measure the cost, schedule, and performance of major defense 
        acquisition programs, and making such recommendations to the 
        Secretary of Defense as the official considers appropriate to 
        improve such metrics.
            (5) Advising acquisition officials on performance issues 
        regarding a major defense acquisition program that may arise--
                    (A) prior to certification under section 2433a of 
                title 10, United States Code (as so added);
                    (B) prior to entry into full-rate production; or
                    (C) in the course of consideration of any decision 
                to request authorization of a multiyear procurement 
                contract for the program.

    (c) Performance Assessments.--For purposes of this section, a 
performance assessment with respect to a major defense acquisition 
program is an evaluation of the following:
            (1) The cost, schedule, and performance of the program, 
        relative to current metrics, including performance requirements 
        and baseline descriptions.
            (2) The extent to which the level of program cost, schedule, 
        and performance predicted relative to such metrics is likely to 
        result in the timely delivery of a level of capability to the 
        warfighter that is consistent with the level of resources to be 
        expended and provides superior value to alternative approaches 
        that may be available to meet the same military requirement.

    (d) Root Cause Analyses.--For purposes of this section and section 
2433a of title 10, United States Code (as so added), a root cause 
analysis with respect to a major defense acquisition program is an 
assessment of the underlying cause or causes of shortcomings in cost, 
schedule, or performance of the program, including the role, if any, 
of--
            (1) unrealistic performance expectations;
            (2) unrealistic baseline estimates for cost or schedule;
            (3) immature technologies or excessive manufacturing or 
        integration risk;
            (4) unanticipated design, engineering, manufacturing, or 
        technology integration issues arising during program 
        performance;
            (5) changes in procurement quantities;
            (6) inadequate program funding or funding instability;
            (7) poor performance by government or contractor personnel 
        responsible for program management; or
            (8) any other matters.

    (e) Support of Applicable Capabilities and Expertise.--The Secretary 
of Defense shall ensure that the senior official designated under 
subsection (a) has the support of other Department of Defense officials 
with relevant capabilities and expertise needed to carry out the 
requirements of this section.
    (f) Annual Report.--Not <<NOTE: Effective date.>> later than March 1 
each year, beginning in 2010, the official responsible for conducting 
and overseeing performance assessments and root cause analyses for major 
defense acquisition programs shall submit to the congressional defense 
committees a report on the activities undertaken under this section 
during the preceding year.

[[Page 123 STAT. 1717]]

SEC. 104. ASSESSMENT OF TECHNOLOGICAL MATURITY OF CRITICAL 
                        TECHNOLOGIES OF MAJOR DEFENSE ACQUISITION 
                        PROGRAMS BY THE DIRECTOR OF DEFENSE 
                        RESEARCH AND ENGINEERING.

    (a) Assessment by Director of Defense Research and Engineering.--
            (1) In general.--Section 139a of title 10, United States 
        Code, is amended by adding at the end the following new 
        subsection:

    ``(c)(1) <<NOTE: Review. Reports.>> The Director of Defense Research 
and Engineering, in consultation with the Director of Developmental Test 
and Evaluation, shall periodically review and assess the technological 
maturity and integration risk of critical technologies of the major 
defense acquisition programs of the Department of Defense and report on 
the findings of such reviews and assessments to the Under Secretary of 
Defense for Acquisition, Technology, and Logistics.

    ``(2) <<NOTE: Deadline. Reports.>> The Director shall submit to the 
Secretary of Defense and to the congressional defense committees by 
March 1 of each year a report on the technological maturity and 
integration risk of critical technologies of the major defense 
acquisition programs of the Department of Defense.''.
            (2) First <<NOTE: 10 USC 139a note.>> annual report.--The 
        first annual report under subsection (c)(2) of section 139a of 
        title 10, United States Code (as added by paragraph (1)), shall 
        be submitted to the congressional defense committees not later 
        than March 1, 2010, and shall address the results of reviews and 
        assessments conducted by the Director of Defense Research and 
        Engineering pursuant to subsection (c)(1) of such section (as so 
        added) during the preceding calendar year.

    (b) Report on Resources for Implementation.--Not later than 120 days 
after the date of the enactment of this Act, the Director of Defense 
Research and Engineering shall submit to the congressional defense 
committees a report describing any additional resources that may be 
required by the Director, and by other research and engineering elements 
of the Department of Defense, to carry out the following:
            (1) The requirements under the amendment made by subsection 
        (a)(1).
            (2) The technological maturity assessments required by 
        section 2366b(a) of title 10, United States Code.
            (3) The requirements of Department of Defense Instruction 
        5000, as revised.

    (c) Technological <<NOTE: Deadline. 10 USC 139a note.>> Maturity 
Standards.--Not later than 180 days after the date of the enactment of 
this Act, the Director of Defense Research and Engineering, in 
consultation with the Director of Developmental Test and Evaluation, 
shall develop knowledge-based standards against which to measure the 
technological maturity and integration risk of critical technologies at 
key stages in the acquisition process for purposes of conducting the 
reviews and assessments of major defense acquisition programs required 
by subsection (c) of section 139a of title 10, United States Code (as so 
added).
SEC. 105. ROLE OF THE COMMANDERS OF THE COMBATANT COMMANDS IN 
                        IDENTIFYING JOINT MILITARY REQUIREMENTS.

    (a) In General.--Section 181(d) of title 10, United States Code, as 
amended by section 101(d) of this Act, is further amended--

[[Page 123 STAT. 1718]]

            (1) by inserting ``(1)'' before ``The Under Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Council shall seek and consider input from the commanders 
of the combatant commands in carrying out its mission under paragraphs 
(1) and (2) of subsection (b) and in conducting periodic reviews in 
accordance with the requirements of subsection (e).''.
    (b) Input <<NOTE: 10 USC 181 note.>> From Commanders of Combatant 
Commands.--The Joint Requirements Oversight Council in the Department of 
Defense shall seek and consider input from the commanders of combatant 
commands, in accordance with section 181(d) of title 10, United States 
Code (as amended by subsection (a)). Such input may include, but is not 
limited to, an assessment of the following:
            (1) Any current or projected missions or threats in the 
        theater of operations of the commander of a combatant command 
        that would inform the assessment of a new joint military 
        requirement.
            (2) The necessity and sufficiency of a proposed joint 
        military requirement in terms of current and projected missions 
        or threats.
            (3) The relative priority of a proposed joint military 
        requirement in comparison with other joint military requirements 
        within the theater of operations of the commander of a combatant 
        command.
            (4) The ability of partner nations in the theater of 
        operations of the commander of a combatant command to assist in 
        meeting the joint military requirement or the benefit, if any, 
        of a partner nation assisting in development or use of 
        technologies developed to meet the joint military requirement.

    (c) Comptroller General of the United States Review of 
Implementation.--
            (1) Requirement.--Not <<NOTE: Deadline. Reports.>> later 
        than two years after the date of the enactment of this Act, the 
        Comptroller General of the United States shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report on the implementation of the 
        requirements of--
                    (A) subsection (d)(2) of section 181 of title 10, 
                United States Code (as amended by subsection (a)), for 
                the Joint Requirements Oversight Council to solicit and 
                consider input from the commanders of the combatant 
                commands;
                    (B) the amendments to subsection (b) of section 181 
                of title 10, United States Code, made by section 942 of 
                the National Defense Authorization Act for Fiscal Year 
                2008 (Public Law 110-181; 122 Stat. 287) and by section 
                201(b) of this Act; and
                    (C) the requirements of section 201(c) of this Act.
            (2) Matters covered.--The report shall include, at a 
        minimum, an assessment of--
                    (A) the extent to which the Council has effectively 
                sought, and the commanders of the combatant commands 
                have provided, meaningful input on proposed joint 
                military requirements;
                    (B) the quality and effectiveness of efforts to 
                estimate the level of resources needed to fulfill joint 
                military requirements; and

[[Page 123 STAT. 1719]]

                    (C) the extent to which the Council has considered 
                trade-offs among cost, schedule, and performance 
                objectives.

                      TITLE II--ACQUISITION POLICY

SEC. 201. CONSIDERATION OF TRADE-OFFS AMONG COST, SCHEDULE, AND 
                        PERFORMANCE OBJECTIVES IN DEPARTMENT OF 
                        DEFENSE ACQUISITION PROGRAMS.

    (a) Consideration <<NOTE: 10 USC 2302 note.>> of Trade-Offs.--
            (1) In general.--The Secretary of Defense shall ensure that 
        mechanisms are developed and implemented to require 
        consideration of trade-offs among cost, schedule, and 
        performance objectives as part of the process for developing 
        requirements for Department of Defense acquisition programs.
            (2) Elements.--The mechanisms required under this subsection 
        shall ensure, at a minimum, that--
                    (A) Department of Defense officials responsible for 
                acquisition, budget, and cost estimating functions are 
                provided an appropriate opportunity to develop estimates 
                and raise cost and schedule matters before performance 
                objectives are established for capabilities for which 
                the Chairman of the Joint Requirements Oversight Council 
                is the validation authority; and
                    (B) the process for developing requirements is 
                structured to enable incremental, evolutionary, or 
                spiral acquisition approaches, including the deferral of 
                technologies that are not yet mature and capabilities 
                that are likely to significantly increase costs or delay 
                production until later increments or spirals.

    (b) Duties of Joint Requirements Oversight Council.--Section 181(b) 
of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (A);
                    (B) by inserting ``and'' at the end of subparagraph 
                (B) after the semicolon; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) in ensuring the consideration of trade-offs 
                among cost, schedule, and performance objectives for 
                joint military requirements in consultation with the 
                advisors specified in subsection (d);''.
            (2) in paragraph (3)--
                    (A) by inserting ``, in consultation with the Under 
                Secretary of Defense (Comptroller), the Under Secretary 
                of Defense for Acquisition, Technology, and Logistics, 
                and the Director of Cost Assessment and Performance 
                Evaluation,'' after ``assist the Chairman''; and
                    (B) by striking ``and'' after the semicolon at the 
                end;
            (3) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(5) assist the Chairman, in consultation with the 
        commanders of the combatant commands and the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, in 
        establishing an objective for the overall period of time within 
        which

[[Page 123 STAT. 1720]]

        an initial operational capability should be delivered to meet 
        each joint military requirement.''.

    (c) Review <<NOTE: 10 USC 181 note.>> of Joint Military 
Requirements.--The Secretary of Defense shall ensure that each new joint 
military requirement recommended by the Joint Requirements Oversight 
Council is reviewed to ensure that the Joint Requirements Oversight 
Council has, in making such recommendation--
            (1) taken appropriate action to seek and consider input from 
        the commanders of the combatant commands, in accordance with the 
        requirements of section 181(d) of title 10, United States Code 
        (as amended by section 105(a) of this Act);
            (2) engaged in consideration of trade-offs among cost, 
        schedule, and performance objectives in accordance with the 
        requirements of section 181(b)(1)(C) of title 10, United States 
        Code (as added by subsection (b)); and
            (3) engaged in consideration of issues of joint portfolio 
        management, including alternative material and non-material 
        solutions, as provided in Department of Defense instructions for 
        the development of joint military requirements.

    (d) Study <<NOTE: 10 USC 181 note.>> Guidance for Analyses of 
Alternatives.--The Director of Cost Assessment and Program Evaluation 
shall take the lead in the development of study guidance for an analysis 
of alternatives for each joint military requirement for which the 
Chairman of the Joint Requirements Oversight Council is the validation 
authority. In developing the guidance, the Director shall solicit the 
advice of appropriate officials within the Department of Defense and 
ensure that the guidance requires, at a minimum--
            (1) full consideration of possible trade-offs among cost, 
        schedule, and performance objectives for each alternative 
        considered; and
            (2) an assessment of whether or not the joint military 
        requirement can be met in a manner that is consistent with the 
        cost and schedule objectives recommended by the Joint 
        Requirements Oversight Council.

    (e) Analysis of Alternatives in Certification for Milestone A.--
Section 2366a(a) of title 10, United States Code, as amended by section 
101(d)(3) of this Act, is further amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) that an analysis of alternatives has been performed 
        consistent with study guidance developed by the Director of Cost 
        Assessment and Program Evaluation; and''.

    (f) Duties of Milestone Decision Authority.--Section 2366b(a)(1)(B) 
of such title is amended by inserting ``appropriate trade-offs among 
cost, schedule, and performance objectives have been made to ensure 
that'' before ``the program is affordable''.
SEC. 202. <<NOTE: 10 USC 2430 note.>> ACQUISITION STRATEGIES TO 
                        ENSURE COMPETITION THROUGHOUT THE 
                        LIFECYCLE OF MAJOR DEFENSE ACQUISITION 
                        PROGRAMS.

    (a) Acquisition Strategies To Ensure Competition.--The Secretary of 
Defense shall ensure that the acquisition strategy for each major 
defense acquisition program includes--
            (1) measures to ensure competition, or the option of 
        competition, at both the prime contract level and the 
        subcontract

[[Page 123 STAT. 1721]]

        level (at such tier or tiers as are appropriate) of such program 
        throughout the life-cycle of such program as a means to improve 
        contractor performance; and
            (2) adequate documentation of the rationale for the 
        selection of the subcontract tier or tiers under paragraph (1).

    (b) Measures To Ensure Competition.--The measures to ensure 
competition, or the option of competition, for purposes of subsection 
(a)(1) may include measures to achieve the following, in appropriate 
cases if such measures are cost-effective:
            (1) Competitive prototyping.
            (2) Dual-sourcing.
            (3) Unbundling of contracts.
            (4) Funding of next-generation prototype systems or 
        subsystems.
            (5) Use of modular, open architectures to enable competition 
        for upgrades.
            (6) Use of build-to-print approaches to enable production 
        through multiple sources.
            (7) Acquisition of complete technical data packages.
            (8) Periodic competitions for subsystem upgrades.
            (9) Licensing of additional suppliers.
            (10) Periodic system or program reviews to address long-term 
        competitive effects of program decisions.

    (c) Additional Measures To Ensure Competition at Subcontract 
Level.--The Secretary shall take actions to ensure fair and objective 
``make-buy'' decisions by prime contractors on major defense acquisition 
programs by--
            (1) requiring prime contractors to give full and fair 
        consideration to qualified sources other than the prime 
        contractor for the development or construction of major 
        subsystems and components of major weapon systems;
            (2) providing for government surveillance of the process by 
        which prime contractors consider such sources and determine 
        whether to conduct such development or construction in-house or 
        through a subcontract; and
            (3) providing for the assessment of the extent to which a 
        contractor has given full and fair consideration to qualified 
        sources other than the contractor in sourcing decisions as a 
        part of past performance evaluations.

    (d) Consideration of Competition Throughout Operation and 
Sustainment of Major Weapon Systems.--Whenever a decision regarding 
source of repair results in a plan to award a contract for performance 
of maintenance and sustainment of a major weapon system, the Secretary 
shall take actions to ensure that, to the maximum extent practicable and 
consistent with statutory requirements, contracts for such maintenance 
and sustainment are awarded on a competitive basis and give full 
consideration to all sources (including sources that partner or 
subcontract with public or private sector repair activities).
    (e) Applicability.--
            (1) Strategy and measures to ensure competition.--The 
        requirements of subsections (a) and (b) shall apply to any 
        acquisition plan for a major defense acquisition program that is 
        developed or revised on or after the date that is 60 days after 
        the date of the enactment of this Act.

[[Page 123 STAT. 1722]]

            (2) Additional <<NOTE: Deadline.>> actions.--The actions 
        required by subsections (c) and (d) shall be taken within 180 
        days after the date of the enactment of this Act.
SEC. 203. <<NOTE: Deadlines. 10 USC 2430 note.>> PROTOTYPING 
                        REQUIREMENTS FOR MAJOR DEFENSE ACQUISITION 
                        PROGRAMS.

    (a) Competitive Prototyping.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall modify the 
guidance of the Department of Defense relating to the operation of the 
acquisition system with respect to competitive prototyping for major 
defense acquisition programs to ensure the following:
            (1) That the acquisition strategy for each major defense 
        acquisition program provides for competitive prototypes before 
        Milestone B approval (or Key Decision Point B approval in the 
        case of a space program) unless the Milestone Decision Authority 
        for such program waives the requirement pursuant to paragraph 
        (2).
            (2) <<NOTE: Waiver authority.>> That the Milestone Decision 
        Authority may waive the requirement in paragraph (1) only--
                    (A) on the basis that the cost of producing 
                competitive prototypes exceeds the expected life-cycle 
                benefits (in constant dollars) of producing such 
                prototypes, including the benefits of improved 
                performance and increased technological and design 
                maturity that may be achieved through competitive 
                prototyping; or
                    (B) on the basis that, but for such waiver, the 
                Department would be unable to meet critical national 
                security objectives.
            (3) That whenever a Milestone Decision Authority authorizes 
        a waiver pursuant to paragraph (2), the Milestone Decision 
        Authority--
                    (A) shall require that the program produce a 
                prototype before Milestone B approval (or Key Decision 
                Point B approval in the case of a space program) if the 
                expected life-cycle benefits (in constant dollars) of 
                producing such prototype exceed its cost and its 
                production is consistent with achieving critical 
                national security objectives; and
                    (B) <<NOTE: Notification.>> shall notify the 
                congressional defense committees in writing not later 
                than 30 days after the waiver is authorized and include 
                in such notification the rationale for the waiver and 
                the plan, if any, for producing a prototype.
            (4) That prototypes may be required under paragraph (1) or 
        (3) for the system to be acquired or, if prototyping of the 
        system is not feasible, for critical subsystems of the system.

    (b) Comptroller General Review of Certain Waivers.--
            (1) Notice to comptroller general.--Whenever a Milestone 
        Decision Authority authorizes a waiver of the requirement for 
        prototypes pursuant to paragraph (2) of subsection (a) on the 
        basis of excessive cost, the Milestone Decision Authority shall 
        submit the notification of the waiver, together with the 
        rationale, to the Comptroller General of the United States at 
        the same time it is submitted to the congressional defense 
        committees.
            (2) Comptroller general review.--Not later than 60 days 
        after receipt of a notification of a waiver under paragraph (1), 
        the Comptroller General shall--

[[Page 123 STAT. 1723]]

                    (A) review the rationale for the waiver; and
                    (B) submit to the congressional defense committees a 
                written assessment of the rationale for the waiver.
SEC. 204. ACTIONS TO IDENTIFY AND ADDRESS SYSTEMIC PROBLEMS IN 
                        MAJOR DEFENSE ACQUISITION PROGRAMS PRIOR 
                        TO MILESTONE B APPROVAL.

    (a) Modification to Certification Requirement.--Subsection (a) of 
section 2366a of title 10, United States Code, is amended by striking 
``may not receive Milestone A approval, or Key Decision Point A approval 
in the case of a space program,'' and inserting ``may not receive 
Milestone A approval, or Key Decision Point A approval in the case of a 
space program, or otherwise be initiated prior to Milestone B approval, 
or Key Decision Point B approval in the case of a space program,''.
    (b) Modification to Notification Requirement.--Subsection (b) of 
such section is amended--
            (1) by inserting ``(1)'' before ``With respect to'';
            (2) in paragraph (1), as so designated, by striking ``by at 
        least 25 percent,'' and inserting ``by at least 25 percent, or 
        the program manager determines that the period of time required 
        for the delivery of an initial operational capability is likely 
        to exceed the schedule objective established pursuant to section 
        181(b)(5) of this title by more than 25 percent,''; and
            (3) by adding at the end the following new paragraph:

    ``(2) Not <<NOTE: Deadline. Reports.>> later than 30 days after a 
program manager submits a notification to the Milestone Decision 
Authority pursuant to paragraph (1) with respect to a major defense 
acquisition program, the Milestone Decision Authority shall submit to 
the congressional defense committees a report that--
            ``(A) identifies the root causes of the cost or schedule 
        growth in accordance with applicable policies, procedures, and 
        guidance;
            ``(B) identifies appropriate acquisition performance 
        measures for the remainder of the development of the program; 
        and
            ``(C) includes one of the following:
                    ``(i) <<NOTE: Certification.>> A written 
                certification (with a supporting explanation) stating 
                that--
                          ``(I) the program is essential to national 
                      security;
                          ``(II) there are no alternatives to the 
                      program that will provide acceptable military 
                      capability at less cost;
                          ``(III) new estimates of the development cost 
                      or schedule, as appropriate, are reasonable; and
                          ``(IV) the management structure for the 
                      program is adequate to manage and control program 
                      development cost and schedule.
                    ``(ii) <<NOTE: Plan.>> A plan for terminating the 
                development of the program or withdrawal of Milestone A 
                approval, or Key Decision Point A approval in the case 
                of a space program, if the Milestone Decision Authority 
                determines that such action is in the interest of 
                national defense.''.

    (c) Application <<NOTE: 10 USC 2366a note.>> to Ongoing Programs.--
            (1) In <<NOTE: Certification. Deadline.>> general.--Each 
        major defense acquisition program described in paragraph (2) 
        shall be certified in accordance with the requirements of 
        section 2366a of title 10, United States

[[Page 123 STAT. 1724]]

        Code (as amended by this section), within one year after the 
        date of the enactment of this Act.
            (2) Covered programs.--The requirement in paragraph (1) 
        shall apply to any major defense acquisition program that--
                    (A) was initiated before the date of the enactment 
                of this Act; and
                    (B) as of the date of certification under paragraph 
                (1) has not otherwise been certified pursuant to either 
                section 2366a (as so amended) or 2366b of title 10, 
                United States Code.
SEC. 205. ADDITIONAL REQUIREMENTS FOR CERTAIN MAJOR DEFENSE 
                        ACQUISITION PROGRAMS.

    (a) Additional Requirements Relating to Milestone B Approval.--
Section 2366b of title 10, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by inserting ``(1)'' before ``The milestone 
                decision authority may''; and
                    (B) by striking the second sentence and inserting 
                the following:

    ``(2) <<NOTE: Determination. Waiver authority. Deadline.>> Whenever 
the milestone decision authority makes such a determination and 
authorizes such a waiver--
            ``(A) the waiver, the determination, and the reasons for the 
        determination shall be submitted in writing to the congressional 
        defense committees within 30 days after the waiver is 
        authorized; and
            ``(B) the milestone decision authority shall review the 
        program not less often than annually to determine the extent to 
        which such program currently satisfies the certification 
        components specified in paragraphs (1) and (2) of subsection (a) 
        until such time as the milestone decision authority determines 
        that the program satisfies all such certification components.'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively, and inserting after subsection (d) 
        the following new subsection (e):

    ``(e) Designation of Certification Status in Budget Documentation.--
Any budget request, budget justification material, budget display, 
reprogramming request, Selected Acquisition Report, or other budget 
documentation or performance report submitted by the Secretary of 
Defense to the President regarding a major defense acquisition program 
receiving a waiver pursuant to subsection (d) shall prominently and 
clearly indicate that such program has not fully satisfied the 
certification requirements of this section until such time as the 
milestone decision authority makes the determination that such program 
has satisfied all such certification components.''; and
            (3) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (2) as paragraph (3);
                    (C) by inserting after paragraph (1) the following 
                new paragraph (2):

[[Page 123 STAT. 1725]]

            ``(2) has received a preliminary design review and conducted 
        a formal post-preliminary design review assessment, and 
        certifies on the basis of such assessment that the program 
        demonstrates a high likelihood of accomplishing its intended 
        mission; and''; and
                    (D) in paragraph (3), as redesignated by 
                subparagraph (B) of this paragraph--
                          (i) in subparagraph (D), by striking the 
                      semicolon and inserting ``, as determined by the 
                      Milestone Decision Authority on the basis of an 
                      independent review and assessment by the Director 
                      of Defense Research and Engineering; and'';
                          (ii) by striking subparagraph (E); and
                          (iii) by redesignating subparagraph (F) as 
                      subparagraph (E).

    (b) Certification <<NOTE: 10 USC 2366b note.>> and Review of 
Programs Entering Development Prior to Enactment of Section 2366b of 
Title 10.--
            (1) Determination.--Not <<NOTE: Deadline.>> later than 270 
        days after the date of the enactment of this Act, for each major 
        defense acquisition program that received Milestone B approval 
        before January 6, 2006, and has not received Milestone C 
        approval, and for each space program that received Key Decision 
        Point B approval before January 6, 2006, and has not received 
        Key Decision Point C approval, the Milestone Decision Authority 
        shall determine whether or not such program satisfies all of the 
        certification components specified in paragraphs (1) and (2) of 
        subsection (a) of section 2366b of title 10, United States Code 
        (as amended by subsection (a) of this section).
            (2) Annual review.--The Milestone Decision Authority shall 
        review any program determined pursuant to paragraph (1) not to 
        satisfy any of the certification components of subsection (a) of 
        section 2366b of title 10, United States Code (as so amended), 
        not less often than annually thereafter to determine the extent 
        to which such program currently satisfies such certification 
        components until such time as the Milestone Decision Authority 
        determines that such program satisfies all such certification 
        components.
            (3) Designation of certification status in budget 
        documentation.--Any budget request, budget justification 
        material, budget display, reprogramming request, Selected 
        Acquisition Report, or other budget documentation or performance 
        report submitted by the Secretary of Defense to the President 
        regarding a major defense acquisition program which the 
        Milestone Decision Authority determines under paragraph (1) does 
        not satisfy all of the certification components of subsection 
        (a) of section 2366b of title 10, United States Code, (as so 
        amended) shall prominently and clearly indicate that such 
        program has not fully satisfied such certification components 
        until such time as the Milestone Decision Authority makes the 
        determination that such program has satisfied all such 
        certification components.

    (c) Reviews <<NOTE: 10 USC 2433a note.>> of Programs Restructured 
After Experiencing Critical Cost Growth.--
The <<NOTE: Assessment.>> official designated to perform oversight of 
performance assessment pursuant to section 103 of this Act, shall assess 
the performance of each major defense acquisition

[[Page 123 STAT. 1726]]

program that has exceeded critical cost growth thresholds established 
pursuant to section 2433(e) of title 10, United States Code, but has not 
been terminated in accordance with section 2433a of such title (as added 
by section 206(a) of this Act) not less often than semi-annually until 
one year after the date on which such program receives a new milestone 
approval, in accordance with section 2433a(c)(3) of such title (as so 
added). The results of reviews performed under this subsection shall be 
reported to the Under Secretary of Defense for Acquisition, Technology, 
and Logistics and summarized in the next annual report of such 
designated official.
SEC. 206. CRITICAL COST GROWTH IN MAJOR DEFENSE ACQUISITION 
                        PROGRAMS.

    (a) Actions Following Critical Cost Growth.--
            (1) In general.--Chapter 144 of title 10, United States 
        Code, is amended by inserting after section 2433 the following 
        new section:
``Sec. 2433a. Critical cost growth in major defense acquisition 
                    programs

    ``(a) Reassessment <<NOTE: Consultations.>> of Program.--If the 
program acquisition unit cost or procurement unit cost of a major 
defense acquisition program or designated subprogram (as determined by 
the Secretary under section 2433(d) of this title) increases by a 
percentage equal to or greater than the critical cost growth threshold 
for the program or subprogram, the Secretary of Defense, after 
consultation with the Joint Requirements Oversight Council regarding 
program requirements, shall--
            ``(1) <<NOTE: Determination.>> determine the root cause or 
        causes of the critical cost growth in accordance with applicable 
        statutory requirements and Department of Defense policies, 
        procedures, and guidance; and
            ``(2) in consultation with the Director of Cost Assessment 
        and Program Evaluation, carry out an assessment of--
                    ``(A) the projected cost of completing the program 
                if current requirements are not modified;
                    ``(B) the projected cost of completing the program 
                based on reasonable modification of such requirements;
                    ``(C) the rough order of magnitude of the costs of 
                any reasonable alternative system or capability; and
                    ``(D) the need to reduce funding for other programs 
                due to the growth in cost of the program.

    ``(b) Presumption <<NOTE: Deadline. Certification.>> of 
Termination.--(1) After conducting the reassessment required by 
subsection (a) with respect to a major defense acquisition program, the 
Secretary shall terminate the program unless the Secretary submits to 
Congress, before the end of the 60-day period beginning on the day the 
Selected Acquisition Report containing the information described in 
section 2433(g) of this title is required to be submitted under section 
2432(f) of this title, a written certification in accordance with 
paragraph (2).

    ``(2) A certification described by this paragraph with respect to a 
major defense acquisition program is a written certification that--
            ``(A) the continuation of the program is essential to the 
        national security;

[[Page 123 STAT. 1727]]

            ``(B) there are no alternatives to the program which will 
        provide acceptable capability to meet the joint military 
        requirement (as defined in section 181(g)((1) of this title) at 
        less cost;
            ``(C) the new estimates of the program acquisition unit cost 
        or procurement unit cost have been determined by the Director of 
        Cost Assessment and Program Evaluation to be reasonable;
            ``(D) the program is a higher priority than programs whose 
        funding must be reduced to accommodate the growth in cost of the 
        program; and
            ``(E) the management structure for the program is adequate 
        to manage and control program acquisition unit cost or 
        procurement unit cost.

    ``(3) <<NOTE: Reports.>> A written certification under paragraph (2) 
shall be accompanied by a report presenting the root cause analysis and 
assessment carried out pursuant to subsection (a) and the basis for each 
determination made in accordance with subparagraphs (A) through (E) of 
paragraph (2), together with supporting documentation.

    ``(c) Actions if Program Not Terminated.--(1) If the Secretary 
elects not to terminate a major defense acquisition program pursuant to 
subsection (b), the Secretary shall--
            ``(A) restructure the program in a manner that addresses the 
        root cause or causes of the critical cost growth, as identified 
        pursuant to subsection (a), and ensures that the program has an 
        appropriate management structure as set forth in the 
        certification submitted pursuant to subsection (b)(2)(E);
            ``(B) rescind the most recent Milestone approval, or Key 
        Decision Point approval in the case of a space program, for the 
        program and withdraw any associated certification under section 
        2366a or 2366b of this title;
            ``(C) require a new Milestone approval, or Key Decision 
        Point approval in the case of a space program, for the program 
        before taking any contract action to enter a new contract, 
        exercise an option under an existing contract, or otherwise 
        extend the scope of an existing contract under the program, 
        except to the extent determined necessary by the Milestone 
        Decision Authority, on a non-delegable basis, to ensure that the 
        program can be restructured as intended by the Secretary without 
        unnecessarily wasting resources;
            ``(D) include in the report specified in paragraph (2) a 
        description of all funding changes made as a result of the 
        growth in cost of the program, including reductions made in 
        funding for other programs to accommodate such cost growth; and
            ``(E) conduct regular reviews of the program in accordance 
        with the requirements of section 205 of the Weapon Systems 
        Acquisition Reform Act of 2009.

    ``(2) <<NOTE: Reports.>> For purposes of paragraph (1)(D), the 
report specified in this paragraph is the first Selected Acquisition 
Report for the program submitted pursuant to section 2432 of this title 
after the President submits a budget pursuant to section 1105 of title 
31, in the calendar year following the year in which the program was 
restructured.

[[Page 123 STAT. 1728]]

    ``(d) Actions <<NOTE: Reports.>> if Program Terminated.--If a major 
defense acquisition program is terminated pursuant to subsection (b), 
the Secretary shall submit to Congress a written report setting forth--
            ``(1) an explanation of the reasons for terminating the 
        program;
            ``(2) the alternatives considered to address any problems in 
        the program; and
            ``(3) the course the Department plans to pursue to meet any 
        continuing joint military requirements otherwise intended to be 
        met by the program.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 144 of such title is amended by inserting 
        after the item relating to section 2433 the following new item:

``2433a. Critical cost growth in major defense acquisition programs.''.

            (3) Conforming amendment.--Paragraph (2) of section 2433(e) 
        of such title 10 is amended to read as follows:

    ``(2) If the program acquisition unit cost or procurement unit cost 
of a major defense acquisition program or designated major subprogram 
(as determined by the Secretary under subsection (d)) increases by a 
percentage equal to or greater than the critical cost growth threshold 
for the program or subprogram, the Secretary of Defense shall take 
actions consistent with the requirements of section 2433a of this 
title.''.
    (b) Treatment as MDAP.--Section 2430 of such title is amended--
            (1) in subsection (a)(2), by inserting ``, including all 
        planned increments or spirals,'' after ``an eventual total 
        expenditure for procurement''; and
            (2) by adding at the end the following new subsection:

    ``(c) For purposes of subsection (a)(2), the Secretary shall 
consider, as applicable, the following:
            ``(1) The estimated level of resources required to fulfill 
        the relevant joint military requirement, as determined by the 
        Joint Requirements Oversight Council pursuant to section 181 of 
        this title.
            ``(2) The cost estimate referred to in section 2366a(a)(4) 
        of this title.
            ``(3) The cost estimate referred to in section 
        2366b(a)(1)(C) of this title.
            ``(4) The cost estimate within a baseline description as 
        required by section 2435 of this title.''.
SEC. 207. ORGANIZATIONAL CONFLICTS OF INTEREST IN MAJOR DEFENSE 
                        ACQUISITION PROGRAMS.

    (a) Revised <<NOTE: Deadline. 10 USC 2430 note.>> Regulations 
Required.--Not later than 270 days after the date of the enactment of 
this Act, the Secretary of Defense shall revise the Defense Supplement 
to the Federal Acquisition Regulation to provide uniform guidance and 
tighten existing requirements for organizational conflicts of interest 
by contractors in major defense acquisition programs.

    (b) Elements.--The revised regulations required by subsection (a) 
shall, at a minimum--
            (1) address organizational conflicts of interest that could 
        arise as a result of--
                    (A) lead system integrator contracts on major 
                defense acquisition programs and contracts that follow 
                lead system

[[Page 123 STAT. 1729]]

                integrator contracts on such programs, particularly 
                contracts for production;
                    (B) the ownership of business units performing 
                systems engineering and technical assistance functions, 
                professional services, or management support services in 
                relation to major defense acquisition programs by 
                contractors who simultaneously own business units 
                competing to perform as either the prime contractor or 
                the supplier of a major subsystem or component for such 
                programs;
                    (C) the award of major subsystem contracts by a 
                prime contractor for a major defense acquisition program 
                to business units or other affiliates of the same parent 
                corporate entity, and particularly the award of 
                subcontracts for software integration or the development 
                of a proprietary software system architecture; or
                    (D) the performance by, or assistance of, 
                contractors in technical evaluations on major defense 
                acquisition programs;
            (2) ensure that the Department of Defense receives advice on 
        systems architecture and systems engineering matters with 
        respect to major defense acquisition programs from federally 
        funded research and development centers or other sources 
        independent of the prime contractor;
            (3) require that a contract for the performance of systems 
        engineering and technical assistance functions for a major 
        defense acquisition program contains a provision prohibiting the 
        contractor or any affiliate of the contractor from participating 
        as a prime contractor or a major subcontractor in the 
        development or construction of a weapon system under the 
        program; and
            (4) establish such limited exceptions to the requirement in 
        paragraphs (2) and (3) as may be necessary to ensure that the 
        Department of Defense has continued access to advice on systems 
        architecture and systems engineering matters from highly-
        qualified contractors with domain experience and expertise, 
        while ensuring that such advice comes from sources that are 
        objective and unbiased.

    (c) Consultation in Revision of Regulations.--
            (1) Recommendations of panel on contracting integrity.--Not 
        later <<NOTE: Deadline.>> than 90 days after the date of the 
        enactment of this Act, the Panel on Contracting Integrity 
        established pursuant to section 813 of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
        364; 120 Stat. 2320) shall present recommendations to the 
        Secretary of Defense on measures to eliminate or mitigate 
        organizational conflicts of interest in major defense 
        acquisition programs.
            (2) Consideration of recommendations.--In developing the 
        revised regulations required by subsection (a), the Secretary 
        shall consider the following:
                    (A) The recommendations presented by the Panel on 
                Contracting Integrity pursuant to paragraph (1).
                    (B) Any findings and recommendations of the 
                Administrator for Federal Procurement Policy and the 
                Director of the Office of Government Ethics pursuant to 
                section 841(b) of the Duncan Hunter National Defense 
                Authorization Act for Fiscal Year 2009 (Public Law 110-
                417; 122 Stat. 4539).

[[Page 123 STAT. 1730]]

    (d) Extension <<NOTE: 10 USC 2304 note.>> of Panel on Contracting 
Integrity.--Subsection (e) of section 813 of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 is amended to read as 
follows:

    ``(e) Termination.--
            ``(1) In <<NOTE: Notification.>> general.--Subject to 
        paragraph (2), the panel shall continue to serve until the date 
        that is 18 months after the date on which the Secretary of 
        Defense notifies the congressional defense committees of an 
        intention to terminate the panel based on a determination that 
        the activities of the panel no longer justify its continuation 
        and that concerns about contracting integrity have been 
        mitigated.
            ``(2) Minimum continuing service.--The panel shall continue 
        to serve at least until December 31, 2011.''.

              TITLE III--ADDITIONAL ACQUISITION PROVISIONS

SEC. 301. <<NOTE: 10 USC 2302 note.>> AWARDS FOR DEPARTMENT OF 
                        DEFENSE PERSONNEL FOR EXCELLENCE IN THE 
                        ACQUISITION OF PRODUCTS AND SERVICES.

    (a) In <<NOTE: Deadline.>> General.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
commence carrying out a program to recognize excellent performance by 
individuals and teams of members of the Armed Forces and civilian 
personnel of the Department of Defense in the acquisition of products 
and services for the Department of Defense.

    (b) Elements.--The <<NOTE: Procedures.>> program required by 
subsection (a) shall include the following:
            (1) Procedures for the nomination by the personnel of the 
        military departments and the Defense Agencies of individuals and 
        teams of members of the Armed Forces and civilian personnel of 
        the Department of Defense for eligibility for recognition under 
        the program.
            (2) Procedures for the evaluation of nominations for 
        recognition under the program by one or more panels of 
        individuals from the Government, academia, and the private 
        sector who have such expertise, and are appointed in such 
        manner, as the Secretary shall establish for purposes of the 
        program.

    (c) Award of Cash Bonuses.--As part of the program required by 
subsection (a), the Secretary may award to any individual recognized 
pursuant to the program a cash bonus authorized by any other provision 
of law to the extent that the performance of such individual so 
recognized warrants the award of such bonus under such provision of law.
SEC. 302. EARNED VALUE MANAGEMENT.

    (a) Modification of Elements in Report on Implementation.--
Subsection (a) of section 887 of the Duncan Hunter National Defense 
Authorization Act for Fiscal Year 2009 (Public Law 110-417; 122 Stat. 
4562) is amended by striking paragraph (7) and inserting the following 
new paragraphs:
            ``(7) A discussion of the methodology used to establish 
        appropriate baselines for earned value management at the award 
        of a contract or commencement of a program, whichever is 
        earlier.

[[Page 123 STAT. 1731]]

            ``(8) A discussion of the manner in which the Department 
        ensures that personnel responsible for administering and 
        overseeing earned value management systems have the training and 
        qualifications needed to perform that responsibility.
            ``(9) A discussion of mechanisms to ensure that contractors 
        establish and use approved earned value management systems, 
        including mechanisms such as the consideration of the quality of 
        contractor earned value management performance in past 
        performance evaluations.
            ``(10) Recommendations for improving earned value management 
        and its implementation within the Department, including--
                    ``(A) a discussion of the merits of possible 
                alternatives; and
                    ``(B) a plan for implementing any improvements the 
                Secretary determines to be appropriate.''.

    (b) Modification of Report Date.--Subsection (b) of such section is 
amended by striking ``270 days after the date of the enactment of this 
Act'' and inserting ``October 14, 2009''.
SEC. 303. EXPANSION OF NATIONAL SECURITY OBJECTIVES OF THE 
                        NATIONAL TECHNOLOGY AND INDUSTRIAL BASE.

    (a) In General.--Section 2501(a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(6) Maintaining critical design skills to ensure that the 
        armed forces are provided with systems capable of ensuring 
        technological superiority over potential adversaries.''.

    (b) Assessment of Effect of Termination of Major Defense Acquisition 
Programs on Technology and Industrial Capabilities.--Section 2505(b) of 
such title is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) consider the effects of the termination of major 
        defense acquisition programs (as the term is defined in section 
        2430 of this title) in the previous fiscal year on the sectors 
        and capabilities in the assessment.''.
SEC. 304. COMPTROLLER GENERAL OF THE UNITED STATES REPORTS ON 
                        COSTS AND FINANCIAL INFORMATION REGARDING 
                        MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Review of Operating and Support Costs of Major Weapon Systems.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Comptroller General of the United 
        States shall submit to the congressional defense committees a 
        report on growth in operating and support costs for major weapon 
        systems.
            (2) Elements.--In preparing the report required by paragraph 
        (1), the Comptroller General shall, at a minimum--
                    (A) identify the original estimates for operating 
                and support costs for major weapon systems selected by 
                the Comptroller General for purposes of the report;
                    (B) assess the actual operating and support costs 
                for such major weapon systems;
                    (C) analyze the rate of growth for operating and 
                support costs for such major weapon systems;

[[Page 123 STAT. 1732]]

                    (D) for such major weapon systems that have 
                experienced the highest rate of growth in operating and 
                support costs, assess the factors contributing to such 
                growth;
                    (E) assess measures taken by the Department of 
                Defense to reduce operating and support costs for major 
                weapon systems; and
                    (F) make such recommendations as the Comptroller 
                General considers appropriate.

    (b) Review of Financial Information Relating to Major Defense 
Acquisition Programs.--
            (1) Review.--The Comptroller General of the United States 
        shall perform a review of weaknesses in operations affecting the 
        reliability of financial information on the systems and assets 
        to be acquired under major defense acquisition programs.
            (2) Elements.--The review required under paragraph (1) 
        shall--
                    (A) identify any weaknesses in operations under 
                major defense acquisition programs that hinder the 
                capacity to assemble reliable financial information on 
                the systems and assets to be acquired under such 
                programs in accordance with applicable accounting 
                standards;
                    (B) identify any mechanisms developed by the 
                Department of Defense to address weaknesses in 
                operations under major defense acquisition programs 
                identified pursuant to subparagraph (A); and
                    (C) assess the implementation of the mechanisms set 
                forth pursuant to subparagraph (B), including--
                          (i) the actions taken, or planned to be taken, 
                      to implement such mechanisms;
                          (ii) the schedule for carrying out such 
                      mechanisms; and
                          (iii) the metrics, if any, instituted to 
                      assess progress in carrying out such mechanisms.
            (3) Consultation.--In performing the review required by 
        paragraph (1), the Comptroller General shall seek and consider 
        input from each of the following:
                    (A) The Chief Management Officer of the Department 
                of Defense.
                    (B) The Chief Management Officer of the Department 
                of the Army.
                    (C) The Chief Management Officer of the Department 
                of the Navy.
                    (D) The Chief Management Officer of the Department 
                of the Air Force.
            (4) Report.--Not later than one year after the date of 
        enactment of this Act, the Comptroller General shall submit

[[Page 123 STAT. 1733]]

        to the congressional defense committees a report on the results 
        of the review required by paragraph (1).

    Approved May 22, 2009.

LEGISLATIVE HISTORY--S. 454 (H.R. 2101):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 111-101 accompanying H.R. 2101 (Comm. on Armed 
Services) and 111-124 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 155 (2009):
            May 6, 7, considered and passed Senate.
            May 13, considered and passed House, amended, in lieu of 
                H.R. 2101 pursuant to H. Res. 432.
            May 20, Senate agreed to conference report.
            May 21, House agreed to conference report.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
            May 22, Presidential remarks.

                                  <all>