MAJOR DEFENSE ACQUISITION PILOT PROGRAM

SEC. 809. MAJOR DEFENSE ACQUISITION PILOT PROGRAM (a) Authority To Conduct Pilot Program.— The Secretary of Defense may conduct a pilot program for the purpose of determining the potential for increasing the efficiency and effectiveness of the acquisition process in major defense acquisition programs. 104 STAT. 1594 (b) Designation of Participating Programs.— (1) Subject to paragraph (2), the Secretary may designate not more than six major defense acquisition programs for participation in the pilot program. (2) The Secretary may designate for participation in the pilot program only those major defense acquisition programs specifically authorized to be so designated in a law authorizing appropriations for such program enacted after the date of the enactment of this Act. (c) Conduct of Pilot Program.— (1) In the case of each major defense acquisition program designated for participation in the pilot program, the Secretary— (A) shall conduct the program in accordance with standard commercial, industrial practices; and (B) may waive or limit the applicability of any provision of law that is specifically authorized to be waived in the law authorizing appropriations referred to in subsection (b)(2) and that prescribes— (i) procedures for the procurement of supplies or services; (ii) a preference or requirement for acquisition from any source or class of sources; (iii) any requirement related to contractor performance; (iv) any cost allowability, cost accounting, or auditing requirements; or (v) any requirement for the management of, testing to be performed under, evaluation of, or reporting on a major defense acquisition program. (2) The waiver authority provided in paragraph (1)(B) does not apply to a provision of law if, as determined by the Secretary— (A) a purpose of the provision is to ensure the financial integrity of the conduct of a Federal Government program; or (B) the provision relates to the authority of the Inspector General of the Department of Defense. (d) Designation as Defense Enterprise Program.— The Secretary shall designate each participating major defense acquisition program as a defense enterprise program under section 2436 of title 10, United States Code. The Secretary may waive the applicability of the requirement of this subsection or any provision of such section 2436 to any such acquisition program if he determines that such a waiver is necessary for the purpose of the pilot program. (e) Regulations.— (1) Not later than 270 days after the date of the enactment of this Act, the Secretary shall publish proposed regulations to implement this section and an invitation for public comment on the proposed regulations. Not later than one year after such date, the Secretary shall promulgate final regulations to implement this section. (2) (A) The Secretary may not waive or limit the applicability of a law to a major defense acquisition program under subsection (c)(1)(B) unless the Secretary first prescribes regulations specifying the waiver or limitation. (B) In the case of a waiver or limitation of the applicability of a requirement imposed by a statute, including a regulation prescribed to implement such statutory requirement, the following procedures shall apply: (i) The Secretary shall publish the proposed waiver or limiting regulations and provide an opportunity for public comment on the proposed regulations for a period of not less than 60 days. 104 STAT. 1595 (ii) If a Federal Government official outside the Department of Defense has the responsibility for implementation of the statute, the Secretary shall consult with such official regarding the proposed waiver or limitation before publishing the proposed waiver or limiting regulations under clause (i). (3) The Secretary may prescribe separate regulations for one or more major defense acquisition programs designated by the Secretary for participation in the pilot program. (f) Notification and Implementation.— (1) The Secretary shall transmit to the congressional defense committees a written notification of each major defense acquisition program proposed to be designated by the Secretary for participation in the pilot program. (2) If the Secretary proposes to waive or limit the applicability of any provision of law to a major defense acquisition program under the pilot program in accordance with this section, the Secretary shall include in the notification regarding that acquisition program— (A) the provision of law proposed to be waived or limited; (B) the effects of such provision of law on the acquisition, including specific examples; (C) the actions taken to ensure that the waiver or limitation will not reduce the efficiency, integrity, and effectiveness of the acquisition process used for the major defense acquisition program; and (D) specific budgetary and personnel savings, if any, that will result from the waiver or limitation. (g) Limitation on Waiver Authority.— The applicability of the following requirements of law may not be waived or limited under subsection (c)(1)(B) with respect to a major defense acquisition program: (1) The requirements of this section. (2) The requirements contained in any law enacted on or after the date of the enactment of this Act if that law designates such major defense acquisition program as a participant in the pilot program, except to the extent that a waiver of such requirement is specifically authorized for such major defense acquisition program in a law enacted on or after such date. (h) Termination of Authority.— The authority to waive or limit the applicability of any law under this section may not be exercised after September 30, 1992. (i) Definition.— In this section the term “major defense acquisition program” shall have the meaning given such term in section 2430 of title 10, United States Code.