To limit the use of cost-type contracts by the Department of Defense for major defense acquisition programs.

1. Adds SEC. 808. LIMITATION ON USE OF COST-TYPE CONTRACTS at the end of subtitle A of title VIII

   Adds a section

   In S. 1867 · Placed on Calendar Senate

   (2) The term "major weapon system" has the meaning given that term in section 2379(f) of title 10, United States Code.

   Inserted: SEC. 808. LIMITATION ON USE OF COST-TYPE CONTRACTS.

   Inserted: (a) Prohibition With Respect to Production of Major Defense Acquisition Programs.--

   Inserted: (1) In general.--Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall modify the acquisition regulations of the Department of Defense to prohibit the Department from entering into cost-type contracts for the production of major defense acquisition programs (MDAPs).

   Inserted: (2) Exception for joint urgent operational needs.--The prohibition under subsection (a) shall not apply in the case of a particular cost-plus contract if the Under Secretary for Acquisition, Technology, and Logistics--

   Inserted: (A) certifies, in writing, with reasons, and on the basis of a validation of a joint urgent operational need by the Joint Requirements Oversight Council, that a cost-type contract is needed to provide capability required to satisfy a joint urgent operational need; and

   Inserted: (B) provides the certification to the congressional defense committees not later than 30 business before issuing a solicitation for the production of a major defense acquisition program.

   Inserted: (b) Conditions With Respect to Development of Major Defense Acquisition Programs.--Section 818(d) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2329; 10 U.S.C. 2306 note) is amended--

   Inserted: (1) in paragraph (1), by striking "; and" and inserting a semicolon;

   Inserted: (2) in paragraph (2), by striking the period at the end and inserting "; and"; and

   Inserted: (3) by adding at the end the following new paragraphs:

   Inserted: "(3) all reasonable efforts have been made to define the requirements sufficiently to allow for the use of a fixed-price contract for the development of the major defense acquisition program; and

   Inserted: "(4) despite these efforts, the Department of Defense cannot define requirements sufficiently to allow for the use of a fixed-price contract for the development of the major defense acquisition program.".

   Show 5 more inserted paragraphsShow less

   Inserted: (c) Reporting of Cost-type Development Contracts.--Not later than 30 business days before issuing a solicitation for the development of a major defense acquisition program, the Secretary of Defense shall submit to the congressional defense committees notice of the proposed award and the written determinations required under paragraphs (1) and (4) of section 818(d) of the John Warner National Defense Authorization Act for Fiscal Year 2007, as amended by subsection (b), and the reasons supporting the determinations.

   Inserted: (d) Definitions.--In this section:

   Inserted: (1) Major defense acquisition program.--The term "major defense acquisition program" has the meaning given the term in section 2430(a) of title 10, United States Code.

   Inserted: (2) Production of a major defense acquisition program.--The term "production of a major defense acquisition program" means the production, either on a low-rate initial production or full-rate production basis, and deployment of a major system that is intended to achieve operational capability that satisfies mission needs, or any activity otherwise defined as Milestone C, or Key Decision Point C in the case of a space program, under Department of Defense Instruction 5000.02 or related authorities.

   Inserted: (3) Development of a major defense acquisition program.--The term "development of a major defense acquisition program" means the development of a major defense acquisition program or related increment of capability, the completion of full system integration, the development of an affordable and executable manufacturing process, the demonstration of system integration, interoperability, safety, and utility, or any activity otherwise defined as Milestone B, or Key Decision Point B in the case of a space program, under Department of Defense Instruction 5000.02 or related authorities.

   Original wording

   At the end of subtitle A of title VIII, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed