ACQUISITION REPORT STREAMLINING

SEC. 811. ACQUISITION REPORT STREAMLINING (a) Unit Cost Reports.—(1) Subsection (a) of section 2433 of title 10, United States Code, is amended— (A) in paragraph (2), by inserting “the service acquisition executive designated by” before “the Secretary concerned”; and (B) in paragraph (4)— (i) by inserting “the service acquisition executive designated by” before “the Secretary concerned”; (ii) in clause (A), by striking out “unit cost report submitted under subsection (e)(2)(B)(ii) with respect to” and inserting in lieu thereof “Selected Acquisition Report submitted under subsection (e)(2)(B) that includes information on”; and (iii) in clause (B), by striking out “subsection (e)(2)(B)(ii) with respect to the program during that three-quarter period, the most recent unit cost report submitted under subsection (e)(1) with respect to the program” and inserting in lieu thereof “subsection (e)(2)(B) with respect to the program during that three-quarter period, the most recent Selected Acquisition Report Submitted under subsection (e)(1)that includes information on the program”. (2) Subsection (b) of section 2433 of such title is amended— (A) by striking out “(b) The program manager” and all that follows through the colon preceding paragraph (1) and inserting in lieu thereof the following: “(b) The program manager for a major defense acquisition program (other than a program not required to be included in the Selected Acquisition Report for that quarter under section 2432(b)(3) of this title) shall, on a quarterly basis, submit to the service acquisition executive designated by the Secretary concerned a written report on the unit costs of the program. Each report shall be submitted not more than 7 days (excluding Saturdays, Sundays, and legal public holidays) after the end of that quarter. The program manager shall include in each such unit cost report the following information with respect to the program (as of the last day of the quarter for which the report is made):”; and (B) in paragraph (4), by striking out “Selected Acquisition Report” and inserting in lieu thereof “description established under section 2435 of this title”. (3) Subsection (c) of section 2433 of such title is amended— (A) in paragraph (1)— (i) by striking out “fiscal-year” in the matter above clause (A); and (ii) in the matter following clause (C)— (I) by inserting “the service acquisition executive designated by” before “the Secretary concerned” the first place it appears; (II) by striking out “(other than the unit cost report under subsection (b) for the last quarter of the preceding fiscal year)” and inserting in lieu thereof “(other than the last quarterly unit cost report under subsection (b) for the preceding fiscal year)”; and 103 STAT. 1491 (III) by striking out “Secretary concerned” the second place it appears and inserting in lieu thereof “such service acquisition executive”; and (B) in paragraph (2)— (i) in the matter above clause (A)— (I) by inserting “the service acquisition executive designated by” before “the Secretary concerned” the first place it appears; and (II) by striking out “(other than the unit cost report under subsection (b) for the last quarter of the preceding fiscal year)” and inserting in lieu thereof “(other than the last quarterly unit cost report under subsection (b) for the preceding fiscal year)”; and (ii) by striking out “Secretary concerned” each place it appears in clauses (A), (B), and (C) and in the matter following clause (C) and inserting in lieu thereof “such service acquisition executive”. (4) Subsection (d) of section 2433 of such title is amended— (A) in paragraph (1)— (i) by inserting “the service acquisition executive designated by” before “the Secretary concerned” the first place it appears; and (ii) by striking out “Secretary shall determine” and inserting in lieu thereof “service acquisition executive shall determine”; (B) in paragraph (2)— (i) by inserting “the service acquisition executive designated by” before “the Secretary concerned” the first place it appears; and (ii) by striking out “Secretary concerned shall, in addition to the determination under paragraph (1), determine” and inserting in lieu thereof “service acquisition executive, in addition to the determination under paragraph (1), shall determine”; and (C) by striking out paragraph (3) and inserting in lieu thereof the following: “(3) If, based upon the service acquisition executive’s determination, the Secretary concerned determines (for the first time since the beginning of the current fiscal year) that the current program acquisition unit cost has increased by more than 15 percent, or by more than 25 percent, as determined under paragraph (1) or that the current procurement unit cost has increased by more than 15 percent, or by more than 25 percent, as determined under paragraph (2), the Secretary shall notify Congress in writing of such determination and of the increase with respect to such program within 30 days after the date on which the service acquisition executive reports his determination of such increase in such unit cost to the Secretary and shall include in such notification the date on which the determination was made.”. (5) Subsection (e) of section 2433 of such title is amended— (A) by striking out “(e)(i)” and all that follows through the end of paragraph (2) and inserting in lieu thereof the following: “(e)(1)(A) Except as provided in subparagraph (B), whenever the Secretary concerned determines under subsection (d) that the current program acquisition cost of a major defense acquisition program has increased by more than 15 percent, a Selected Acquisition Report shall be submitted to Congress for the first fiscal-year quar-103 STAT. 1492ter ending on or after the date of the determination and such report shall include the information described in section 2432(e) of this title. The report shall be submitted within 45 days after the end of that Quarter. “(B) Whenever the Secretary makes a determination referred to in subparagraph (A) in the case of a major defense acquisition program during the second quarter of a fiscal year and before the date on which the President transmits the budget for the following fiscal year to Congress pursuant to section 1105 of title 31, the Secretary is not required to file a Selected Acquisition Report under subparagraph (A) but shall include the information described in subsection (g) regarding that program in the comprehensive annual Selected Acquisition Report submitted in that quarter. “(2) If the percentage increase in the current program acquisition cost of a major defense acquisition program (as determined by the Secretary under subsection (d)) exceeds 25 percent, the Secretary of Defense shall submit to Congress, before the end of the 30-day period beginning on the day the Selected Acquisition Report containing the information described in subsection (g) is required to be submitted under section 2432(f) of this title— “(A) a written certification, stating that— “(i) such acquisition program is essential to the national security; “(ii) there are no alternatives to such acquisition program which will provide equal or greater military capability at less cost; “(iii) the new estimates of the program acquisition unit cost or procurement unit cost are reasonable; and “(iv) the management structure for the acquisition program is adequate to manage and control program acquisition unit cost or procurement unit cost; and “(B) if a report under paragraph (1) has been previously submitted to Congress with respect to such program for the current fiscal year but was based upon a different unit cost report from the program manager to the service acquisition executive designated by the Secretary concerned, a further report containing the information described in subsection (g), determined from the time of the previous report to the time of the current report.”; and (B) in paragraph (3)— (i) by striking out “(3)” and inserting in lieu thereof the following: “(3) If a determination of a more than 15 percent increase is made by the Secretary under subsection (d) and a Selected Acquisition Report containing the information described in subsection (g) is not submitted to Congress under paragraph (1), or if a determination of a more than 25 percent increase is made by the Secretary under subsection (d) and the certification of the Secretary of Defense is not submitted to Congress under paragraph (2), funds appropriated for military construction, for research, development, test, and evaluation, and for procurement may not be obligated for a major contract under the program.”; (ii) by striking out “in subsection (d)(3)(B)”; (iii) in clause (A)— (I) by striking out “report of the Secretary concerned” and inserting in lieu thereof “Selected Acquisition Report”; and 103 STAT. 1493 (H) by striking out “(2)(B)(U)” and inserting in lieu thereof “(2)(B)”; and (iv) in clause (B)— (I) by striking out “report of the Secretary concerned” and inserting in lieu thereof “Selected Acquisition Report”; (II) by striking out “(2)(B)(ii)” and inserting in lieu thereof “(2)(B)”; and (III) by striking out “(2)(B)(i)” and inserting in lieu thereof “(2)(A)”. (6) Subsection (g)(2) of section 2433 of such title is amended by adding at the end the following new sentence: “The certification of the Secretary of Defense under subsection (e) is not required to be submitted for termination or cancellation of a program.”. (b) Enhanced Program Stability.—Section 2435 of title 10, United States Code, is amended— (1) in subsection (a)(2)(B)(iv), by striking out “development” and inserting in lieu thereof “production”; and (2) in subsection (b)— (A) by striking out “senior procurement executive of such military department (designated pursuant to section 16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 414(3))” in paragraph (1) and inserting in lieu thereof “service acquisition executive designated by such Secretary”; and (B) by striking out “90 days—” in paragraph (2) and inserting in lieu thereof “180 days—”, (c) Selected Acquisition Reports.— Section 2432(b)(2)(A) of title 10, United States Code, is amended by striking out “5 percent change in total program cost” and inserting in lieu thereof “15 percent increase in program acquisition unit cost and current procurement unit cost”.